Mexico’s Bank Profits Hit MX$267.3 Billion, Up 3.15% in 2024

Banks operating in Mexico reported profits of MX$267.3 billion by November 2024, marking real annual growth of 3.15%, according to data from the National Banking and Securities Commission (CNBV). These gains are expected to surpass the MX$272.6 billion recorded in 2023, setting a new record for the industry.

The sector’s performance has been driven by sustained economic growth and the central bank's policy rate of 10.25%, which, although showing signs of easing, remained high. Total interest income reached MX$1.6 trillion in the first 11 months of 2024, reflecting annual real growth of 6.39%, while interest expenses grew by 5.58% to nearly MX$850 billion.

BBVA retained its position as Mexico’s leading bank, posting profits of MX$84.5 billion by November 2024, a marginal real increase of 0.17%. Banorte followed with MX$42 billion in profits, up 4.45%, while Santander recorded MX$26.5 billion, representing a decline of 7.28%. Banamex rebounded with a 15.2% increase in profits to MX$22.6 billion, and Inbursa achieved a 19.13% rise to MX$21.9 billion.

Together, eight banks—including Scotiabank, BanBajío, and HSBC—accounted for approximately 83% of sector profits, with the broader industry comprising 51 institutions.

The sector’s total loan portfolio grew by 6.28% in real terms, exceeding MX$7.4 trillion. Commercial loans rose 6.23%, consumer loans 9.66%, and mortgage loans 3.17%. Deposits also increased, growing by 5.21% to over MX$8.9 trillion.

Despite this growth, analysts predict a slowdown in credit extension in 2025.

BBVA expressed optimism about the country’s economic outlook. Carlos Torres Vila, BBVA's global president, emphasized Mexico’s strategic advantages, such as its proximity to the United States and competitive cost structure. He noted that innovation, digitalization, and sustainability remain central to the bank's strategy.

Julio Carranza, President, Mexican Banking Association (ABM), affirmed the sector's readiness to support the government’s Plan México, which aims to finance micro, small, and medium enterprises (MSMEs). Banks in Mexico currently have MX$1.3 trillion available for loans, with MX$500 billion already allocated to formal MSMEs. However, Carranza stressed the importance of government-backed guarantees to extend credit to informal businesses transitioning to the formal sector.

“Today, MSMEs generate eight out of every 10 jobs in Mexico,” Carranza stated. “A joint effort between the banking sector, government, and businesses is crucial to expand credit access.”

While the banking sector has shown resilience, challenges remain. Institutions such as Banamex have expressed concerns over fiscal consolidation and structural issues, suggesting that government economic strategies may lack alignment with long-term fiscal objectives. Despite these challenges, BBVA forecasts stable profitability in 2025, supported by proactive risk management and favorable credit quality trends.