Maurici Llado, Managing Director, Banco Sabadell, Miami Branch

In an interview with Invest:, Maurici Llado, Managing Director of Banco Sabadell, Miami Branch, discussed the bank’s record-breaking performance in 2023, ongoing growth in 2024, and its strategic focus in the region. He also highlighted Banco Sabadell’s approach to navigating economic pressures, geopolitical risks, and growing opportunities in renewable energy and data center financing.

What were the most significant milestones and achievements for Banco Sabadell over the last year?

2023 was a record year for Banco Sabadell in Miami, both in terms of business volume and profitability. This success was reflected across all areas of our business, including private banking and corporate banking.

As we entered 2024, we were somewhat concerned about our ability to sustain the same level of growth. However, 2024 has been an excellent year so far, and we are once again setting new records. For instance, we’ve surpassed $7 billion in loans and our assets under management have reached over $16 billion for the first time. This is a clear indicator of the confidence our clients have in Sabadell and the sustainability of our unique business model, which sets us apart from other banks.

With inflation and higher interest rates posing significant challenges, how has Sabadell navigated ongoing economic pressures?

We have navigated that scenario quite well. Rising interest rates do affect the performance of both corporate clients and households, especially with the added pressure from inflation. 

Now, we find ourselves in a completely different situation, where we are preparing for a potential downside scenario involving lowering interest rates. We are now strategizing how to manage this shift and its impact on our clients, both in corporate banking and private banking. So far, this has not negatively affected us, as reflected in our strong numbers. Our ability to adapt to new interest rate environments is one of our many strengths.

What are some of the opportunities Sabadell sees in the region’s banking sector compared to other regions?

Although we are based in Miami, our focus extends beyond the city. On the private banking side, most of our clients are from Latin America, while on the corporate banking side, we primarily serve U.S. corporations located throughout the country. Only a small portion of our portfolio is based in Miami.

We are optimistic about Miami’s future. The city is growing rapidly, both economically and in terms of its population. We see a lot of interest from companies, not just from Latin America or Europe, but also from other states within the United States. This is a trend we have been observing consistently every month,with more companies relocating here. It is great for the local economy as well as for our business, but it also increases competition in the financial sector. That being said, competition is healthy, and we have no concerns about it — it is part of doing business!

What services are in highest demand among your clients, and do you anticipate growth in these areas in the coming years?

It depends on the sector. In private banking, our clients — since most of them come from Latin America and are used to dealing in the currency — are very active in U.S. dollar investments. Political instability in countries like Mexico, Ecuador, and Venezuela drives them to divest from those regions and invest more in the U.S., which benefits our business. Our goal is to help them navigate these risks and make sound investments.

In corporate banking, renewable energy is a key focus. We are among the most active lenders in this area, with teams in New York and Miami financing renewable projects. This is a growing trend as demand for green energy rises.

We also see opportunities in data center financing, driven by the demand for AI and digitalization. Data centers are booming, and we were involved in several deals last year. We expect this momentum to continue and are actively exploring new opportunities.

Last time we spoke, you mentioned that Sabadell was focusing on enhancing digital banking services. Could you share any updates on that front?

That is an ongoing process — investment in IT never stops. We are heavily focused on improving the client experience at Sabadell, and that includes our digital services. At the same time, we are investing significant resources into cybersecurity, which has become one of the largest risks faced by the financial sector.

Cybersecurity is crucial for keeping the bank safe and ready for future growth. There’s also increasing regulatory pressure from both Europe and the United States for banks to enhance their IT environments. With advancements in artificial intelligence, there is growing concern about bad actors using these tools to commit fraud, and that presents a real danger to the industry. As a bank, we manage money, and that makes us a primary target for cybercriminals.

Our clients need to be aware of this risk too. As a banking client, you must be extremely cautious when opening emails or engaging in transactions over the phone or social media, as cyberthreats are a constant reality.

How is Sabadell addressing sustainability and responsible stewardship within its banking operations?

Sustainability is at the core of our operations. We’re aligned with many initiatives from our headquarters in Europe, which tends to lead the United States in this space. As part of a European bank, Sabadell is likely ahead of many local banks in terms of sustainability efforts. In the United States, one of our main areas of financing is the transition to green energy through renewable energy projects. We support both U.S. clients and Spanish clients looking to invest in this sector.

In private banking, our clients are starting to show interest in green investments. We have responded by offering new products, such as green funds and sustainability-focused funds, which allow clients to diversify their portfolios. 

What are Sabadell’s top priorities and goals for the next couple of years?

Growth is always our keyword. The coming years will be challenging as the U.S. federal deficit and debt remain concerning. This ongoing issue will persist, which is not good for the country. 

What worries me more are the geopolitical risks — the Middle East, and the Russia-Ukraine war. These global tensions create a fragile environment. While the U.S. economy is performing well, with strong GDP forecasts, corporate earnings, and a solid labor market, we are in a stable economy surrounded by an unstable world. 

Geopolitical risks are hard to hedge against, but we’ve navigated such challenges before, during the 2008 crisis and COVID-19. Our risk management team helped us grow then, and I believe they will guide us through the next few years as well. Our goal is to keep our steady organic growth, without major acquisitions.

How do you envision the future of Miami over the next decade, and what role do you see Sabadell playing in shaping that future?

Miami has a bright future, and we have been discussing its potential for years. What is different now is that this potential is more tangible, with real investment flowing in. Companies are moving here, we are no longer seeing just international investors in real estate.

Miami is becoming a major hub, attracting people and businesses from other states and countries, but this also brings competition. Miami now competes with cities like Austin and regions in California, especially in tech. We are seeing growth in real estate, as usual, but also in the financial sector, with many financial companies relocating from New York to Miami, which is great for the city and for us.

At Sabadell, we see an opportunity to be more active in Miami. Our goal for 2025 and 2026 is to strengthen our presence in real estate financing and support the local economy. While we have traditionally been active in this sector, we have not been as focused on it recently. Now, we plan to increase involvement in financing projects tied to the local economy.