Banco del Bajío S.A. Institución de Banca Múltiple

What it is

BanBajío is a Mexican commercial bank headquartered in León, Guanajuato — one of the fastest-growing local banks in the country and the eighth-largest by customer deposits and lending. It concentrates on commercial banking for small and medium-sized businesses and the agricultural industry, operating across 18 states with 123 branches.

The bank has been actively capturing lending demand linked to nearshoring — the shift of manufacturing closer to the United States that has flooded the Bajío region with new factories. About 10% of its loan book involves companies that export, mainly to the US; management expects the trade relationship between the two countries to ultimately benefit the bank.

Who owns it

Salvador Oñate Ascencio founded the bank and remains its largest single shareholder, with roughly 24% of shares outstanding. Individual insiders collectively hold about 35–38% of the company, meaning the founding group retains a tight grip — rare among mid-sized listed banks.

Individual (non-insider) investors own about 44%, and institutional investors account for roughly 18% per EODHD, leaving a free float that is real but constrained.

Who runs it

Iván Lomelí became CEO from 1 May 2025, after Edgardo del Rincón announced his departure following seven years at the helm. Del Rincón left to become CEO of Banamex.

Lomelí joined BanBajío in 2022 as head of corporate banking for the metropolitan zone and brings more than three decades of sector experience. Day-to-day finances are overseen by Joaquín David Alemán Jasso, Deputy General Director of Finance and Administration — the CFO-equivalent.

The money, in plain words

The bank earns roughly MXN 26.2 bn (US$1.51 bn) a year in revenue, and keeps about 35 cents of every peso as profit — a net profit margin of 34.7% on 2025 annual figures (our calculation), well above most regional banks in Latin America. For every peso shareholders have put in, it earns back nearly 18 cents a year — a return on equity of 17.6% — which is solid, though below the 24.5% peak reached in 2024 as interest rates were higher.

At a price-to-earnings ratio of just 7.2×, the market is pricing the stock cheaply by global standards, which usually signals either a bargain or a genuine risk. The 2025 guidance pointed to a net income decline of around 11% from 2024’s MXN 10.7 bn (US$617 mn), as slower Mexican GDP growth and falling interest rates squeeze the spread the bank earns on its loans.

Cash on the balance sheet stands at MXN 23.0 bn (US$1.33 bn — our calculation), a comfortable buffer against a softer lending environment.

What it is doing now

In early 2025, the bank’s loan book expanded 10.8%, with business loans up 12.3% and total deposits up 10.5% — strong numbers in a slowing economy. Its digital push is gaining ground: 82% of all transactions now happen online or on mobile, and non-interest income — fees, insurance, foreign-exchange commissions — jumped 25% in Q1 2025.

Management also proposed an extraordinary cash dividend of MXN 0.90 (US$0.05)per share, targeting a total payout ratio of 60% for 2025, a signal of confidence in capital strength even as earnings dip.

What to watch

• Interest rate sensitivity. The bank’s net interest margin — the gap between what it charges borrowers and what it pays depositors — fell 110 basis points year-on-year to 5.9% by Q3 2025, squeezed by Mexico’s rate-cutting cycle. Every further cut by Banxico tightens that gap further.
• Nearshoring versus tariff risk. The bank has been positioning to lend to companies benefiting from nearshoring, but trade-policy uncertainty with the US affects roughly 10% of its loan book directly.
• Leadership transition. A new CEO with three decades of experience but only three years inside BanBajío took the chair in May 2025 — execution continuity is the key unknown.
• Loan quality. The share of loans that are overdue is 1.5%, well below the Mexican system average, but the cost of absorbing problem loans was running at 109 basis points with expectations it will normalise over two to three quarters.

This is news, not investment advice.