Mexico's BBVA Bancomer Gains Market Share In Lending

Mexico's BBVA Bancomer Gains Market Share In Lending - CEO

The head of BBVA Bancomer said Tuesday that the bank has gained market share in several credit segments in Mexico, where it is already the largest bank by deposits.

"Leaving the flow of credit open during the [2008-2009 global economic] crisis allowed us to take advantage of opportunities that arose because some of our competitors had more restrictions on their growth," BBVA Bancomer Chief Executive Ignacio Deschamps said during the bank's annual board meeting.

BBVA Bancomer is a unit of Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC).

As of end of May, BBVA Bancomer had a 31% market share in consumer lending and credit cards, up from 29% a year ago, Deschamps said, and the bank's total credit portfolio expanded 14% more than the sector average last month.

Deschamps said the bank now holds 27% of Mexican deposits, adding that BBVA Bancomer is behind one in every three mortgage loans granted by private-sector banks.

Citigroup Inc.'s (C) Mexican unit, Banamex, is BBVA Bancomer's biggest competitor, with around 20% of the country's nearly three trillion pesos ($255 billion) in deposits as of the end of March.

BBVA Bancomer has grown its client base to 17 million from nine million over the past decade, Deschamps said, boosting transactions and helping to compensate for a 37% decline in real terms in the commissions that the bank charges.

Brisk loan and deposit growth drove the Mexican unit's 26% rise in first-quarter net profit of EUR436 million, representing more than one-third of the Spanish group's EUR1.15 billion quarterly profit.

-By Amy Guthrie, Dow Jones Newswires; 5255-5980-5177; amy.guthrie@dowjones.com

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