For the manager, the uncertainty caused by the possible approval of the electricity reform will be resolved and he believes that both Mexican and foreign investors will have to stop postponing projects.
Navarro believes that this tense environment is not new: investments have been on hold since 2016, when Donald Trump won the election in the United States because he raised a lot of concern about the decisions he would make, especially NAFTA (now T-MEC); two years later, uncertainty focused on who would be the president of Mexico and already in 2020 the pandemic caused investments to continue to be stopped in the face of an uncertain future.
“Yes, there are those who are worried about the war in Ukraine and who is worried about what is going to happen with the electricity reform, but as if the business community is tired of always being worried. We have been like this since 2016 and nothing has happened”, Explain.
While the issue of trust is unlocked, Banregio wants to maintain its consolidated position in real estate and agribusiness.
Navarro says that they stopped building industrial parks due to lack of supply, but now with the economic reactivation, this type of infrastructure is being required, especially in the states near the border.
In agribusiness, Banregio wants to take advantage of Mexico’s export potential to the United States, mainly. Navarro says that the agricultural industry has been modernized in terms of the infrastructure for planting and harvesting, as well as the packaging with which these products reach the final consumer.
Banregio, a Mexican bank that was born in 1994 and that grants credit to companies and individuals, closed the fourth quarter of 2021 with a credit portfolio of 117,614 million pesos, 6.8% more than in 2020. For this year, the bank estimates have a growth of up to 12% in the portfolio.
In addition, with the upward cycle of the interest rate by the Bank of Mexico (Banxico), the bank considers that it can have good profits because it makes loans at variable rates.
When asking about the sale of Banamex and the possible reconfiguration of Mexican banking, Navarro says that the opportunity -beyond capturing new clients, whom he seeks to convince and give complementary products to those they already have- lies in the available talent that will be available after the sale.
“Both Banamex and the other banks have very valuable people, so there is going to be an opportunity to hire people with a lot of knowledge,” he points out.
