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BBVA CEO remains bullish on Mexico ahead of presidential transition

Published 09/25/2024, 09:26 AM
Updated 09/25/2024, 10:20 AM
© Reuters. FILE PHOTO: A man uses an ATM machine of Spain's Sabadell bank near a branch of Spain's BBVA bank in Madrid, May 10, 2024. REUTERS/Susana Vera/File Photo
BBVA
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MADRID (Reuters) -BBVA Chief Executive Onur Genc said on Wednesday he remained bullish on Mexico, the Spanish bank's largest market, ahead of the swearing-in ceremony of incoming President Claudia Sheinbaum.

Mexico remains attractive in the long term thanks to its cost structure and leverage compared with the United States, Genc told a banking conference in London.

Sheinbaum, who is due to take over as president on Oct. 1, has a good track record from when she served as Mexico City's head of government between 2018 and 2023 and was saying "all the things that she needs to say", Genc said.

He also cited Mexico's private investment and opportunities for "nearshoring" - the practice of moving business operations to a nearby country instead of a more distant one.

© Reuters. FILE PHOTO: A man uses an ATM machine of Spain's Sabadell bank near a branch of Spain's BBVA bank in Madrid, May 10, 2024. REUTERS/Susana Vera/File Photo

Genc highlighted Mexico's growing role as a manufacturing hub, saying that the country had now surpassed China as the top exporter to the United States due to its lower production costs and skilled labour force.

He added that BBVA (BME:BBVA) had gained 5 million new customers in Mexico in the past few years, 85% of which were acquired through digital.

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