Balance of the overdue credit card portfolio has been on the rise for 3 months, according to the BdeM
The balance of the overdue portfolio in loans granted by banks through credit cards has been on the rise for three consecutive months, confirm data from the Bank of Mexico (BdeM).
According to the central bank, until May the balance of the overdue credit card portfolio stood at 6 thousand 647 million pesos, that is, an increase of 10 percent compared to the 6 thousand 21 million reported in April.
When compared to March, when the overdue balance reached 5 thousand 857 million, there is an increase of 13.4 percent and compared to February, when the amount was 5 thousand 786 million pesos, the increase is 14.8 percent.
Figures from the central bank indicate that the current balance of financing in the credit card segment until the fifth month is 394 thousand 949 million pesos, for which the past due balance is equivalent to 1.68 percent.
If the balance due in May of this year is compared to that same month, but in 2021, when it was placed at 11,296 million pesos, there is a decrease of 41 percent; and compared to May 2019, the year before the pandemic, when it was placed at 12 thousand 149 million, the drop is 45 percent.
However, the non-payment segment on credit cards had been decreasing for 13 continuous months until April, since the last increase recorded in the central bank’s reports is from January 2021.
The increase in credit card defaults coincides with the period when inflation began to rise in the country.