Spanish bank Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) said Thursday that it will invest $3.5 billion in Mexico over the next four years to renovate its branches, invest in information technology and for construction of new operations centers as well as a new corporate headquarters.
The company noted that the investment is the largest in the history of BBVA Bancomer, its unit in Mexico. The decision was announced by Francisco González, Executive Chairman of BBVA, in the presence of the President of Mexico, Enrique Peña Nieto, at the Mexican President's official residence.
González said, "We are convinced that in the coming years, Mexico has been consolidated as one of the most important and dynamic economies in the world, and that will lead global growth."
BBVA said that it will use the investment of $3.5 billion over the four-year period from 2013 to 2016 to develop a new multi-channel distribution model to improve service as well as to develop new products with higher added value for customers of BBVA Bancomer.
The bank said it has spent nearly $1.30 billion on renovating all its branches in Mexico to improve the customer experience with a new service model. It will invest another $1.5 billion in new technology infrastructure, the development of new distribution channels and in strengthening the operational and risk platforms as well as the central infrastructure of data processing and business processes.
In addition, BBVA will spend another $700 million to complete the construction of new operations centers in Mariano Escobedo and in Atizapán, and a new corporate headquarters in Paseo de la Reforma in Mexico City.
BBVA Bancomer, Mexico's largest bank, has nearly 21 million customers in that country, while its market shares in loans range from 20 percent to 30 percent. In 2012, Bancomer contributed 25 percent of group revenues and consolidated its position as the main contributor to profits.
Gonzalez noted that the crisis in Europe has not affected BBVA Bancomer. The bank has 38,000 employees, 1,800 branches, 7,700 ATMs and 20,000 banking correspondents in Mexico.
BBVA closed Thursday's trading at $9.47, down $0.09 or 0.94 percent on a volume of 1.07 million shares.
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