At the end of December 2023, the multiple banking in Mexico showed profits and profitability levels at historical highs with an increase in net income of 14.7% compared to the previous year, accumulating 273.3 billion pesos.
According to the most recent analysis of the banking sector prepared by the rating agency HR Ratings, this behavior was driven by the normalization of economic activities after the end of confinement measures, which caused greater credit activity, an increase in the employment and consumption of the population, as well as an environment of high interest rates due to the restrictive monetary policy applicable in Mexico.
In addition, the sector maintains solid solvency levels, with a Capitalization Ratio of 18.8% in December 2023, which is higher than the required minimum of 10.5%, which reflects the sector’s ability to face unexpected loss scenarios. .
The document states that the sector maintains optimal levels in the quality of its portfolio due to adequate portfolio origination processes, which is reflected in an adjusted delinquency and delinquency rate of 2.1 and 4.1% in December 2023.
The rating agency expects that in the coming years the sector will maintain strength in its financial position, facing challenges such as the impact of the monetary policy stance.
Its forecast is that the reference interest rate will close at a level of 10.25% in 2024 and 8.50% in 2025, which would be reflected in a decrease in the sector’s lending rate.
Despite the lower generation of interest income, it would be expected that given the greater volume of its operations, the sector would continue to show adequate generation of profits and maintain its adequate levels of profitability.”
For the medium and long term, he forecast growth in gross fixed investment in the private sector as a result of the nearshoringwhich would imply a greater demand for loans to the business sector that would be reflected in the growth of the total portfolio of the banking sector.
The above would impact an increase in the productive capacity of different economic sectors, as well as the infrastructure for the provision of services.”
IN TRANSFORMATION
The banking sector continues with a trend towards digitalization and technological innovation, which promotes financial inclusion and increases operational efficiency for banking institutions, highlighted HR Ratings.
The analysis maintains that, in recent years, the sector has increased investment in digital platforms and the form of digital banks, however, it points out that it is exposed to new risks and challenges, such as cyber risk and adequate regulation in this area. .
In the coming periods we expect an expansion of digital banking, as well as the incorporation of new participants in the sector.”
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THE BANKING CONVENTION BEGINS TODAY
The 87th edition of the Banking Convention starts today in Acapulco.
Financial education, artificial intelligence and the climate crisis are topics that will be addressed this Thursday. Tomorrow there will be tables with the three presidential candidates and a message from Victoria Rodríguez, governor of the Bank of Mexico. President López Obrador will lead the closing.
At the end of 2023, the bank had historic profits and profitability levels, with $273.3 billion accumulated.
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2024-04-18 11:35:49