Mexican Bank Profits Drop 2.1% as Rate Cuts Weigh on Income

Profits for banks operating in Mexico declined in real annual terms between January and September 2025, mainly due to lower interest income stemming from the central bank’s rate-cutting cycle.

According to data from the National Banking and Securities Commission (CNBV), banking sector profits totaled MX$226.075 billion (US$12.2 billion) during the period, representing a 2.12% real annual decrease.

The decline in profits was primarily attributed to a 1.73% drop in interest income, particularly from the commercial loan portfolio. This was compounded by an 11.6% increase in preventive provisions for credit risks and higher administrative and promotional expenses. In contrast, commissions and fees charged by banks continued to rise.

September marked the second consecutive month of declining interest income, following an extended period of growth supported by elevated interest rates. The first contraction since December 2021 occurred in August, when interest income fell by 0.04%.

The sustained growth in interest income had lasted for more than three and a half years, driven by Banxico’s rate-hike cycle that began in mid-2021. The cycle peaked between April 2023 and March 2024, when the reference rate held steady at 11.25%—a period during which banks recorded their strongest earnings from interest income. The rate currently stands at 7.25%, following a 25-basis-point cut last week.

CNBV data show that most of the country’s seven largest banks, known as the G7, reported slower profit growth or outright declines through September:

• BBVA México: +1.42% (MX$74.213 billion)

• Banorte: -2.91% (MX$34.507 billion)

• Santander: +2.99% (MX$23.805 billion)

• Inbursa: -12.7% (MX$16.938 billion)

• Banamex: -45.9% (MX$10.158 billion)

• Scotiabank: -8.95% (MX$7.480 billion)

• HSBC: -4.7% (MX$6.730 billion)