Banks spin 11 months of low profits; credit card delinquency rises

From January to November, the profits of the 50 banks operating in Mexico accumulated 98 billion pesos, 36.5% less in annual terms compared to the same period of 2019, reported the National Baking and Stock Commission (CNBV).

With this result, financial institutions accumulate eleven months of low profits, given the accumulation of reserves to face the economic blow from the Covid-19 pandemic.

According to the agency’s data, current loan portfolio Multiple banking reached a balance of 5 trillion 223 billion pesos, at the end of November, equivalent to a real annual decrease of 4.2% compared to the same month of 2019.

He Consumer credit current registered a balance of 974 billion pesos, a decrease in real terms of 11% and represented 18.7% of the total current portfolio.

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For its part, the credit granted through Credit cards It was located at 376 billion pesos, that is, a decrease of 13% in real annual terms and had a participation of 38.6% within the current consumer portfolio.

Meanwhile, payroll loans registered a balance of 250 billion pesos and decreased 5.9% and made up 25.7% of this portfolio.

Thus, personal loans reached a balance of 165 billion pesos with a annual variation negative real of 20.1% and a share of 16.9% of consumer credit.

Credit card delinquencies rise

The data of the CNBV show that the NPL ratio (IMOR) of the total portfolio stood at 2.46%, 0.22 percentage points more than the level observed in November 2019.

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In the case of consumer credit, the IMOR was 5%, with an annual increase of 0.57 percentage points.

In the case of Credit cards it was located at 6.30%, a strong increase of 1.26 percentage points more than the previous year.

In contrast, payroll credits registered an IMOR of 2.55%, with an annual decrease of 0.34 percentage points and personal loans had an IMOR of 6.64%, 0.09 percentage points less compared to November 2019.

For its part, the Adjusted NPL Index (IMORA), made up of the past-due portfolio plus the written-off portfolio in the immediate previous twelve months, stood at 4.99% at the end of November 2020, that is, 0.41 percentage points more than in November of 2019.

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According to the CNBV, the preventive estimates for credit risks registered a balance of 215 billion pesos, a real increase of 17.3% in annual terms.

cev/rcr

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