In a context of geopolitical fragmentation, review of the USMCA and caution in global investment, what place does Mexico occupy today in Banco Sabadell’s strategy?
César González-Bueno: Mexico occupies a very relevant place and has a clearly positive perspective. We have been in the country for 10 years and we see it with a desire for growth, development and incorporation of new products and talent. The franchise is profitable, but there is still room for improvement. Every year Mexico does better than the last. We see more economic dynamism and a geopolitical position that, within the global complexity, continues to be favorable due to its relationship with the United States, its demographic strength, its natural resources and its industrial and tourism potential.
How much is Mexico a bet for the group in the medium term?
César González-Bueno: It is clearly a structural bet. We really like Mexico and we hope that its weight within the group will grow progressively. Of course, with caution. Things have to be done slowly, thoughtfully and profitably. But our five-year vision is of sustained and orderly growth.
With nearshoring on pause due to political uncertainty in the United States, is it still an axis for the bank in Mexico?
César González-Bueno: We don’t have the slightest doubt. There may be pauses in decisions, but not cancellations. Nobody changes the geographical location of Mexico. The need for infrastructure is still there and supply chains will have to continue to adjust. All of this will require financing, support and specialized banking.
Credit to companies, including SMEs, continues to be a challenge in Mexico. To what extent is Sabadell willing to take on more risk to grow?
César González-Bueno: Growing by granting credit above the actual capacity to repay is not helping companies, it is harming them. Well-granted credit accompanies and strengthens; Excessive credit ends up harming the client and the bank itself. Our approach is to know our clients very well, support viable projects and pace growth prudently. That is one of the fundamental roles of banking.
We are in corporate banking, investment banking and business banking, and we have been progressively moving down to somewhat smaller segments. But always with responsible risk criteria. In Mexico there is a huge path in banking, but growth must be consolidated, not forced.
From the local operation, in which sectors do you see the greatest financing opportunities in Mexico in the coming years?
Albert Figueras: There is a clear combination between sectors with great potential and areas where we have very strong expertise. Hospitality is one of them: we are leaders and we see significant diversification beyond Quintana Roo, with strong dynamism in Los Cabos and the Riviera Nayarit. Also energy. There are projects identified and capital approved in boards of directors that were waiting for regulatory certainty. That process has already begun to unravel.
In addition, agriculture, where we have specialized equipment, and trade linked to real estate logistics and wineries, which continues to have a route both for the domestic market and for export.
Does the current situation keep many investments on hold?
Albert Figueras: Yes, but the investment exists. We are talking about billions of dollars in identified projects. As they are authorized, especially in energy, these investments will arrive. Plan Mexico already outlined many of these needs; Now it’s time to materialize them.
In an environment of rate normalization, are you concerned about Mexico’s macroeconomic performance or the credibility of Banxico?
César González-Bueno: No, on the contrary. We see more controlled inflation, interest rates at more manageable levels for investment and a limited public deficit. Mexico is a country with extraordinary dynamism and perfectly reasonable risks. Our outlook is very optimistic.
During the high rate cycle, a rebound in delinquencies was feared. How did Sabadell experience it in Mexico?
Albert Figueras: Our level of bad debts is extremely low, even lower than that of the group as a whole. Due to the customer profile and the sectors we are in, performance has been very solid.
César González-Bueno: Even very sensitive sectors at a global level, such as tourism, performed better in Mexico than in other markets.
What are the main risks you see for the short term?
Albert Figueras: They are the standard risks of any economy. We do not see a differential structural risk. Mexico has demonstrated an enormous capacity to adapt to geopolitical changes and has a very powerful and diversified business community, which gives it great resilience.
To close, what message would you give about the future of banking in Mexico?
César González-Bueno: Banking in Mexico is very profitable and has a clearly positive future. Banking continues to grow, but there is still a lot to do. There is greater sophistication of financial services, broader coverage of segments and better structuring of financing. It is a sector with enormous long-term potential.
