Mexican Banks Laugh All the Way to the Vault with High-Interest Rates
Mexican banks Banorte, Banco del Bajío, Inbursa, Regional, and Compartamos are reaping the rewards of high-interest rates, with their financial margins soaring. Despite mixed share performance, the sector's fundamentals remain robust, and loan portfolios are expanding.
In a surprising turn of events, high-interest rates have proven to be a boon for several banks listed on the Mexican Stock Exchange (BMV). Banorte, Banco del Bajío, Inbursa, Regional, and Compartamos have experienced a considerable rise in their financial margins, leading to a wave of excitement in the industry.
According to data from last May, this group of banks, excluding preventive estimates, witnessed an impressive annual growth rate of 28.5 percent in their financial margins. This figure surpasses the growth rate of the entire multiple banking sector, which stood at 21.9 percent. The exceptional performance can be attributed to the banks' expanding loan portfolios and the impact of higher interest rates compared to the previous year.
