Rising interest rates boost bank profitability in Mexico
In 2023, discharges interest rate And operating efficiency will continue to increase the profitability of the bank in mexicoagree with Bx+ Financial Group.
Eduardo López Ponce, financial analyst and Fibras of the institution, said that this will allow the banks compensate for the moderation expected in credit portfolio growth.
Situation, he said, which has been observed since last year and an example of this is BBVA Mexico, which closed 2022 with record profits of 84 thousand 840 million pesos, an increase of 29.5% compared to the previous year.
According to its report, this result benefited from an improvement in the financial margin resulting from greater credit portfolio activityas well as an environment of higher interest rates.
The financial margin, where the collection and lending activity of a financial institution is recorded, amounted to 186 thousand 319 million pesos.
This, in part, is due to interest income, which is charged for loans, of 244 thousand 77 million pesos, and interest charges, which is paid to capture, of 62 thousand 862 million pesos.
In this regard, when presenting its results, Eduardo Osuna Osuna, Executive Vice President and General Manager of BBVA Mexicoclarified that the rising interest rates accounted for less than 10% of net earnings.
Banco Santander México also recorded record profits of 26 thousand 476 million pesos, with an increase of 46.4% compared to 2021.
This, to its financial margin which totaled 72 thousand 88 million pesos, among other factors, due to the rising interest ratessince in 2022, the Bank of Mexico raised the benchmark rate by 500 basis points to 10.50%, he explained in his report.
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Source: El Heraldo De Mexico
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