Mexican banks report 4.8% decline in real profits

Mexican banks recorded profits of 199.7 billion pesos from January to August, representing a 4.8% decrease in real terms compared to the 203.1 billion pesos reported during the same period last year. According to data from the National Banking and Securities Commission (CNBV), this marks the fifth consecutive month of declining year-over-year profits.

Despite the drop in earnings, banks increased their credit loss reserves (preventive estimates) to 173.4 billion pesos, a 24.1% real increase compared to the previous year. The total credit portfolio grew by 1.02% to 8.568 trillion pesos. Interest income fell by 6.5% to 1.175 trillion pesos, a trend attributed to the reduction in the Bank of Mexico’s reference interest rate.

Separately, Moody’s Ratings suggests that the adoption of digital payments could benefit the sector by reducing cash management costs and improving credit risk assessment. This follows the Senate's approval of the Digital Economy Law, which aims to expand electronic payment methods and formalize economic activity.