Mexico Bank Credit Accelerates to 6.1% in July

Commercial bank credit to Mexico’s private sector regained momentum in July after five months of slowing growth, according to data from Mexico’s Central Bank (Banxico).

Banxico reported that outstanding bank credit grew 6.1% in real annual terms, up from 5.2% in June, with the total loan portfolio exceeding MX$7.06 trillion. Credit growth had been decelerating since January, when it rose 10.1%, slowing to 9.7% in February, 9% in March, 8% in April, 7.3% in May, and 5.2% in June.

The July rebound was driven by gains across the consumption, housing, and business segments, with consumer credit posting the strongest growth. Consumer loans increased 9.8% year over year, compared with 8.9% in June. Within this segment, credit card loans rose 8.6%, payroll loans 4.2%, and personal loans 9.7%.

Loans for durable goods expanded 18.7%, led by auto loans, which jumped 19.9%. Mortgage credit grew 2.2%, up from 1.5% in June, bringing the portfolio to more than MX$1.45 trillion. Loans to businesses and self-employed individuals increased 6.5%, up from 5.5% in June, totaling more than MX$3.68 trillion.

The Mexican Banking Association (ABM) expects private-sector credit to continue rising despite an economic slowdown. The association forecasts 0.2% economic growth for 2025 and projects that private-sector credit will expand 4.6% in real terms and 8.8% nominally.

“This is encouraging news, as credit continues to grow. We expect to end 2025 with nominal growth of about 8.8%,” said Emilio Romano, president, ABM.