SAT Collects MX$4.52T in 2023: The Week in Finance

Financial services company Goldman Sachs maintains an optimistic economic view as concerned experts eye post-pandemic inflation. Meanwhile, Mexico's Tax Administration Service (SAT) collected MX$4.52 trillion (US$264 billion) in 2023, attributed to the "Master Control and Collection Plan". Additionally, Mexican bank Banorte saw a 13% rise in profit in the wake of its fintech launch. 

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Goldman Sachs Optimistic Despite Inflation Fears

Goldman Sachs maintains an optimistic view on the post-pandemic economic landscape despite concerns from experts about rising inflation and its potential impact on unemployment and economic growth due to increased interest rates. While major central banks have implemented significant interest rate hikes, Goldman Sachs predicts a smooth economic landing with a gradual slowdown in service inflation and wage growth, although concerns persist about excessive government spending and lagging service prices.

Tax Contributions Increased 12% in 2023: SAT

Mexico's Tax Administration Service (SAT) collected MX$4.52 trillion (US$264 billion) in 2023, reflecting a 12.3% growth in tax collection, the highest increase during the current administration. Despite not meeting the original forecast of MX$4.94 trillion, the government attributes the historic figure to the success of the "Master Control and Collection Plan" and the commitment of SAT public servants. 

Reddit to Go Public with March IPO

Social media platform Reddit is set to launch its initial public offering (IPO) in March, making it the first major social media company to go public since Pinterest in 2019. Valued at approximately US$10 billion, Reddit filed confidentially for its IPO in December 2021 and plans to sell about 10% of its shares. 

Banorte’s Q4 Sees 13% Surge in Net Profit

Banorte reported a 13% increase in net profit for the final quarter of the previous year, reaching MX$13.04 billion, citing growth in loans and reduced costs as contributing factors. The financial group's 2023 net profit rose by 15% to MX$52.42 billion, attributed to increased credit origination volumes and higher interest rates, with the consumer segment experiencing a 15% year-on-year growth. 

Mexico Issues Sustainability Bonds

Mexico has successfully executed its largest-ever placement of sustainable bonds in euros, amounting to €2 billion (US$2.2 billion), according to Gabriel Yorio, Deputy Minister of Finance. The achievement is seen as paving the way for Mexican companies to issue their own sustainable financial instruments in the European market at favorable interest rates, following Mexico's recent successful global dollar bond sale of US$7.5 billion.