Banco Sabadell has obtained the necessary permits from the local authorities to begin operating as a commercial bank in Mexico.
The Spanish bank began to provide funding in Mexico one year ago through subsidiary Sabadell Capital, sociedad financiera de objeto múltiple (SOFOM).
Sabadell Capital has achieved its goal of lending $1bn six months ahead of schedule. Sabadell Capital is already among the top 10 corporate banks in Mexico, with close to 60 clients, including major energy, hotel and industrial companies.
In the framework of its internationalisation efforts, focused on Latin America and the recent acquisition of UK bank TSB, Sabadell reorganised its corporate and business structures in America in July. Fernando Pérez-Hickman, Deputy General Manager, is in charge of the America and Global Corporate Banking Division, encompassing the business in Mexico, whose CEO is Francesc Noguera (pictured).
The bank plans to implement a distinctive business model in Mexico, based on innovation and digital media, with quality as a key attribute of its value proposition. Its approach will revolve around service that is oriented towards the client and specialised as a function of the client’s needs; remote banking channels with distinctive features; and a range of products designed to meet the specific needs of Mexican companies and individuals.
Sabadell will focus initially on banking for companies, and will address private individuals in a second phase. It will commence commercial banking operations by the fourth quarter of 2015, initially through three branches: Mexico City North, Mexico City South and Monterrey.
As required by Mexican law, before the bank begins operating it must provide any information requested by the Mexican banking and securities regulator, CNBV, and submit to any reviews required by it to ensure that the products Banco Sabadell plans to offer conform to regulations.
It has had a representative office in Mexico City since 1991 and operated indirectly in the country for 15 years through a 20% stake in Banco del Bajío. Also, earlier in his career, Banco Sabadell’s Managing Director, Jaime Guardiola, was Vice-Chairman and General Manager of Bancomer, Mexico’s largest bank.
The network of representative offices in America (New York, Caracas, São Paulo, Santo Domingo, Bogotá, and—shortly—Lima) is coordinated from Banco Sabadell’s branch in Miami. Operational since 1993, the Miami branch has a full international branch license and provides private and corporate banking services focused on individuals and companies operating in the United States and Latin America. Banco Sabadell also has a local bank in Miami—Sabadell United Bank—with a network of 27 branches throughout Florida. Sabadell has over 16 billion dollars in business in America.