Substantial Earnings Growth for Mexican Banks by July 2024
As of July 2024 the collective earnings of Mexican commercial banks reached 171 881 million pesos. Coverage and analysis from The Rio Times.
As of July 2024, the collective earnings of Mexican commercial banks reached 171,881 million pesos ($9.5 billion). This signifies a year-over-year real increase of 3.56% compared to July 2023.
The rise primarily stems from heightened interest revenues in a high-rate environment, recording 6.63% growth during this period.
However, there was also a notable 15.36% rise in provisions for credit risks and a 30.72% reduction in earnings from intermediary services, among other financial activities. In July 2023, the sector’s earnings were 157,227 million pesos ($8.68 billion).
Leading the profitability front, BBVA and Banorte remained at the forefront, with BBVA securing 54,549 million pesos ($3 billion), a slight decrease of 0.48% year over year.
Conversely, Banorte saw an increase to 26,488 million pesos ($1.46 billion), marking a 3.38% growth. Other notable banks included Santander and Inbursa. Santander faced a 7.87% decline.
In contrast, Inbursa surged by 31.48%. This significant increase was largely influenced by its recent acquisition of Cetelem.
Furthermore, Citibanamex and BanBajío showed diverse trajectories. Citibanamex earned 14,108 million pesos ($0.8 billion), up by 16.4%, while BanBajío experienced a slight reduction of 3.44%.
Among others, Scotiabank and HSBC collectively contributed to bringing the top eight banks’ earnings to 144,814 million pesos ($8 billion) by July 2024.
The banking sector’s credit portfolio also saw a continuous upward trend with a 4.9% real annual increase, totaling a sector balance of 7.22 trillion pesos ($400 billion). Delinquency rates remained low at 2.01% in July, albeit slightly up from June’s 1.98%.
This financial summary underscores the evolving dynamics and resilience of the Mexican banking sector amid fluctuating economic conditions, highlighting both growth and challenges faced by leading institutions.
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