BBVA warns of tougher times ahead in Mexico after peso hit

2/1/2017 Reuters
8686104806_5405c3967d_b

BBVA warned of a tougher business environment in Mexico this year while the Spanish bank’s largest market adapts to the policies of U.S. President Donald Trump.

A 14 percent fall in the peso over the past year, on concerns Trump could rip up a free trade deal with his southern neighbor, contributed to a drop of nearly 30 percent in fourth-quarter profit at BBVA on Wednesday.

Almost half the profits at Spain’s second largest bank are from Mexico, which has offset recent weakness at home for BBVA.

CEO Carlos Torres Vila said BBVA’s underlying growth in Mexico should remain strong through 2017, but forecast lower economic growth and uncertainties resulting from the new U.S. administration would negatively affect its business.

Read more…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s