The Mexican banking system is solid and enjoys high capitalisation. Mexico’s economy, set to grow as much as 5% in 2021, according to the IMF, may boost lending and support stronger fee-based income. We like the systemic Banco Mercantil del Norte, considered as one of the more solid banks in the country with a 21.7% capital adequacy ratio. It benefits from historically strong profitability, supportive for its solid capitalisation. We like BANORT 6.75% perp callable in 2024.