Profitability of banking services increased 9.1% in May

The net profits of financial institutions operating in Mexico increased by 9.1% in May, compared to the same month of 2017, adding 63,700,700 million pesos , said the National Commission of Banks and Securities (CNBV) .

In a news release, the regulator stated that in the fifth month of the year the total credit portfolio the which includes that of multi-purpose financial corporations ( Sofomes ), the regulated entities, related to multiple banking institutions, reached a balance of 4 917 billion pesos, an annual increase of 6.5%. 19659003] "The commercial credit portfolio with a balance of 3 billion 153 billion pesos, showed a growth of 8.2% compared to May 2017 and represents 64.1% of the total portfolio", returned the Regulatory body.

In this context, the portfolio of activities with a balance of 2 billion to 411 billion pesos, accounting for 76.5% of commercial credit, recorded an annual growth of 12.1%.

credit to government entities with a 17.2% stake in the commercial portfolio, decreased by 4.2%, with a balance of 543 billion pesos; while credit to financial entities increased by 0.6%, to add 199 billion pesos, or 6.3% of the commercial portfolio.

"81.6% of business financing was integrated by credit to large corporations and trusts, presenting an annual growth rate of 17.3%," he said.

Meanwhile, loans to micro, small and medium enterprises (MiPymes) captured 18.4 percent of the credit, representing an annual decrease of 6.1 percent.

While consumer credit increased by 3.4 percent, reaching a balance of 991 billion pesos, which equates to 20.2 percent of the total portfolio.

In this context, loans by credit cards with a 38.9% interest in the consumer portfolio, recorded a growth of 3%, or 386 billion pesos; however, payday loans with a 23.5 percent share declined 0.5 percent to 233 billion pesos.

For their part, personal loans with a participation of 21.5%, recorded a balance of 213 billion pesos, a growth of 6.1% in annual terms

Failure rate of the overall loan portfolio set at 2.20%, 0.01 percentage point higher than the observed in May 2017.

The assets of the sector totaled 9 trillion 493 billion pesos, representing an annual increase of 4.5 percent.

In the fifth month of the year, the Multiple Banking Sector consisted of 50 active establishments, two more than those operating at the end of March of the previous year, due to from the beginning of Banco Shinhan and Banco S3 operations of January and March of this year, respectively.

CPR