Banks rates grew 0.3% the first month of the year: CNBV

The decrease in interest rates has begun to have an effect on banks operating in Mexico, which in the first month of the year obtained profits for 27 thousand 343 million pesos, said the National Banking and Securities Commission (CNBV).

In January 2024, the profits generated by these financial intermediaries added 27 thousand 260 million pesos; In nominal terms, they increased 0.3 percent, but in real terms – at the end of the inflation of the period – 3.7 percent decreased.

The group of the seven banks with the greatest presence that operate in the country – BBVA, Santander, Banorte, Banamex, HSBC, Scotiabank and Inbursa – obtained profits for 20 thousand 185 million pesos, equals 73 percent of the total.

The profits of these seven banks, listed of systemic importance – in the case of bankruptcy would put the stability of the Mexican financial system at risk – backed 10.1 percent in real terms compared to the 21,696 million reported in the first month of 2024.

Interest rates and benefits

The aforementioned financial intermediaries have experienced at least a couple of years with extraordinary numbers as a result of the high interest rates in the country. In 2023, they won 272 thousand 672 million pesos, at the end of 2024, the figure was 290 thousand 321 million pesos, both, unprecedented figures.

However, last January the results experienced less dynamism in an environment marked by the decreases to the reference rate by the Bank of Mexico (BDEM), which has maintained the cycle of cuts in the face of lower inflationary pressure.

It should be noted that, according to the figures of the CNBV, in January last year, the banks of the banks grew at a rate of 3.8 percent, and in the same month of 2023, the growth rate was 23.3 percent.

The banking business is one of the most profitable in the country, with a performance on 2.02 assets, which is only surpassed by other industries, such as construction, real estate or mining.

Financial margin

The financial margin, an indicator that is mainly obtained from the difference between the interests charged to the debtors and those paid to the savers, was 75 thousand 453 million pesos, which implied an increase of 4.1 percent in real terms if compared to the 69 thousand 910 million of the first month of 2024.

In this sense, interest revenues added 159 thousand 779 million pesos, 6.9 percent more in real terms, while interest expenses were for 84 thousand 326 million pesos, or an increase of 9.6 percent.