La Jornada: Bank profits fell 5.4% in the first two months: CNBV

In the first two months, private banks operating in the country obtained profits that totaled 48,985 million pesos, a drop of 5.4 percent in real terms compared to the 49,958 million reported in the same period last year, according to data from the National Banking and Securities Commission (CNBV).

It is the first time since March 2024 that the amount of profits of these financial intermediaries has decreased in the annual comparison, according to official statistics.

According to CNBV, private banks accumulated a streak of 23 consecutive months in which the net amount of profits was higher than that reported a year earlier.

The drop in profits was influenced by the lower dynamism of the country’s economic activity, as well as by a lower perception of income, since intermediaries have begun to feel the effects of interest rate cuts by the Bank of Mexico (BdeM), analysts noted.

In theory, when the central bank lowers the reference rate – an instrument that sets the cost at which companies and families are financed – these institutions charge less for the loans they grant, so they receive less income and that ends up being reflected in their profits months later.

According to information from the CNBV, the financial margin, which is obtained mainly from the difference between the interest charged to debtors and those paid to savers, stood at 157,460 million pesos at the end of the first two months of this year.

That amount was 3.3 percent higher, in real terms, if compared to the 146,437 million reported at the end of February of the previous year.

However, income from interest collection at the end of the second month of the year amounted to 279,525 million pesos, a drop of 11.9 percent when compared to the 305,115 million pesos reported at the end of February, but in 2025.

“The slowdown in profits is influenced by the lower dynamism of the national economy and a drop in income derived from the accumulated reduction in the BdeM reference rate. It could also influence that banks must set aside money to cover possible losses due to loans that are not paid, what is known as preventive reserves,” he explained in an interview with The Day James Salazar, deputy director of financial analysis at Kapital.

According to statistics, the balance of preventive estimates for credit risks (reserves) ended February at 41,875 million pesos, which meant an increase of 23.3 percent compared to the 32,631 million reported in the same month last year.

According to information from the CNBV, the eight most important institutions, which are BBVA, Banorte, Santander, Banamex, HSBC, Scotiabank, Inbursa and Citi México, concentrated 82 percent of the profits, with an amount of 40,220 million pesos.