Mexican banks' earnings fall 4.2% as interest margins narrow

The Mexican banking system recorded a 4.2% real decline in net earnings for the January‑May 2026 period, according to data from the National Banking and Securities Commission (CNBV). The drop was led by BBVA México (‑7.01%), Inbursa (‑22%) and Citi México (‑15.8%). In contrast, Banorte (+2.67%), Santander México (+13.07%) and Banamex (+70.81%) posted gains, together accounting for 42.71% of sector profits.

Interest income across the sector fell 9.67% in real terms, reflecting the Bank of Mexico’s (Banxico) recent cuts to the reference rate, which have compressed financial margins after years of elevated rates. The credit portfolio continued to expand, reaching over 8 trillion pesos with a 2.4% annual increase – the strongest growth since late‑2025. Citi’s ongoing sale of its Banamex stake, including a recent 22.6% divestment to institutional investors, also featured in the reporting.

Analysts view the earnings slowdown as a sign that the banking sector is moving from a rate‑driven profit model toward a more sustainable, competition‑focused environment, with digitalisation and specialised products expected to drive future profitability.