Bank profits rise 1.8%

The profitability of the banking sector measured by the Return on Capital rose from 15.49 to 15.88 percent.

Bank profits rise. Image: Pixabay
Bank profits rise. Image: Pixabay

From January to May of 2019, the net profit of the 51 banks that operate in the country grew 1.8 percent over the same period of 2018, rising from 64 billion pesos to 68 billion pesos, reported the National Commission Banking and Securities (CNBV).

With this, the profitability of the banking sector measured by the Return on Capital, that is, on the capital of the shareholders, rose from 15.49 to 15.88 percent.

The net result of the sector was driven by 3.9 percent annual growth in deposits collected from the general public and 3.9 percent in the total loan portfolio, driven by an annual increase of 4 percent in the corporate segment.

Credit to families also expanded in the period analyzed, with the exception of the personal loan portfolio, which fell 3.4 percent.

In credit cards, financing advanced only 0.6 percent, while in payroll loans, the increase was 4 percent.

Regarding the placement of credit to purchase housing, the increase was 6.1 percent.

The CNBV published the adjusted delinquency index (Imora) in the monthly report of the bank, which shows the real delays in the payment of the loans of the families, since it includes the eliminations and penalties of credits with several months of maturity.

Withdrawals and write-offs are expired credits that banks sell to collection companies to clean up their financial balance.

The portfolio of credit cards has the highest Imora, since for the first four months of 2019 it was 15.97 percent, while in the same period of 2018, it was 16.37 percent.

The indicator also fell slightly in personal loans, down from 15.46 to 15.42 percent. In payroll loans, it decreased from 11.14 to 10.25 percent.

By Mexicanist Source Notimex

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