BBVA suffers a blow on the stock market due to Mexico's plan to limit commissions | Economy

BBVA suffers a blow on the stock market due to Mexico's plan to limit commissions | Economy



BBVA has woken up this Friday with a bitter fall in the Spanish stock market. Shortly after starting the session, their shares lost more than 5.6%, to 4.92 euros. The reason is to be found on the other side of the Atlantic: yesterday in Mexico the National Regeneration Movement (Morena), the party of Andrés Manuel López Obrador, presented an initiative to restrict collections of bank fees to users.

The Mexico Stock Exchange already registered heavy losses last night, and ended with a drop of 5.8%, the biggest drop since November 2016, when Donald Trump was elected president of the United States. The most affected of the collapse in Mexico were the banks, which left 82,000 million pesos (3,600 million euros approximately), after the collapse of their shares.

BBVA is the Spanish bank with the most exposure to the Mexican market, due to its strong presence in that country and its branch network through BBVA Bancomer. For the Spanish group, Mexico is its second main market and contributes about 41% of the global benefit (1,851 million euros of profit, 13% more, in the first nine months of the year). It is followed by Santander, which also has a significant presence, but which is on the stock market a much lower blow on Friday, with drops of nearly 1.5% in the Spanish market. In its case, Mexico accounts for about 8% of its total profits, behind other markets such as Brazil.

The López Obrador project is aimed at preventing banks in Mexico from charging fees for usual services. Check balances, interbank transfers or withdraw cash are some of the 12 new cases in which the bill prohibits banks from charging surcharges to users. The amount collected by commissions from banks in Mexico exceeded only 108,000 million Mexican pesos (4,700 million dollars) last year alone, 8% more than in 2016, according to the National Commission for Protection and Defense of Users of Financial Services.

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