Mexico
Highlights for the period January - June 2026
- Credit growth and favorable evolution of customer funds
- Positive performance of all components of gross income
- Good performance of the insurance business
- Quarterly net attributable profit once again reached high levels and above the previous quarter
BUSINESS ACTIVITY (1)
(VARIATION AT CONSTANT EXCHANGE RATE COMPARED TO 31-12-25)
(1) Excluding repos.
NET INTEREST INCOME / AVERAGE TOTAL ASSETS
(PERCENTAGE AT CONSTANT EXCHANGE RATE)
OPERATING INCOME
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATE)
(1) At current exchange rate: 16.4%.
NET ATTRIBUTABLE PROFIT (LOSS)
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATE)
(1) At current exchange rate: 15.8%.
| FINANCIAL STATEMENTS AND RELEVANT BUSINESS INDICATORS (MILLIONS OF EUROS AND PERCENTAGE) | ||||
|---|---|---|---|---|
| Income statement | 6M26 | 𝚫 % | 𝚫 % (1) | 6M25 (2) |
| Net interest income | 6,409 | 16.3 | 8.6 | 5,511 |
| Net fees and commissions | 1,314 | 14.9 | 7.3 | 1,144 |
| Net trading income | 485 | 21.3 | 13.3 | 400 |
| Other operating income and expenses | 356 | 21.6 | 13.7 | 293 |
| Gross income | 8,565 | 16.6 | 8.9 | 7,349 |
| Operating expenses | (2,634) | 16.8 | 9.1 | (2,255) |
| Personnel expenses | (1,214) | 13.7 | 6.3 | (1,067) |
| Other administrative expenses | (1,172) | 20.5 | 12.6 | (972) |
| Depreciation | (248) | 15.1 | 7.5 | (216) |
| Operating income | 5,931 | 16.4 | 8.8 | 5,093 |
| Impairment on financial assets not measured at fair value through profit or loss | (1,719) | 15.7 | 8.1 | (1,486) |
| Provisions or reversal of provisions and other results | (17) | (50.6) | (53.8) | (35) |
| Profit (loss) before tax | 4,195 | 17.4 | 9.7 | 3,573 |
| Income tax | (1,215) | 21.5 | 13.5 | (1,001) |
| Profit (loss) for the period | 2,979 | 15.8 | 8.2 | 2,572 |
| Non-controlling interests | (1) | 14.8 | 7.2 | (0) |
| Net attributable profit (loss) | 2,979 | 15.8 | 8.2 | 2,571 |
| Balance sheets | 30-06-26 | 𝚫 % | 𝚫 % (1) | 31-12-25 (2) |
| Cash, cash balances at central banks and other demand deposits | 12,868 | 23.5 | 16.4 | 10,417 |
| Financial assets designated at fair value | 64,091 | 6.6 | 0.4 | 60,136 |
| Of which: Loans and advances | 2,773 | (57.5) | (59.9) | 6,523 |
| Financial assets at amortized cost | 118,539 | 12.4 | 5.9 | 105,494 |
| Of which: Loans and advances to customers | 108,468 | 11.5 | 5.1 | 97,259 |
| Tangible assets | 2,174 | 4.4 | (1.6) | 2,081 |
| Other assets | 5,266 | 16.4 | 9.7 | 4,525 |
| Total assets/liabilities and equity | 202,938 | 11.1 | 4.7 | 182,654 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 37,262 | 14.4 | 7.8 | 32,584 |
| Deposits from central banks and credit institutions | 5,851 | (2.9) | (8.5) | 6,028 |
| Deposits from customers | 105,290 | 12.2 | 5.7 | 93,855 |
| Debt certificates | 13,450 | 15.3 | 8.7 | 11,664 |
| Other liabilities | 29,312 | 6.6 | 0.4 | 27,507 |
| Allocated regulatory capital | 11,773 | 6.9 | 0.7 | 11,015 |
| Relevant business indicators | 30-06-26 | 𝚫 % | 𝚫 % (1) | 31-12-25 |
| Performing loans and advances to customers under management (3) | 108,705 | 11.2 | 4.8 | 97,744 |
| Non-performing loans | 3,181 | 12.9 | 6.4 | 2,817 |
| Customer deposits under management (3) | 101,433 | 8.1 | 1.9 | 93,817 |
| Off-balance sheet funds (4) | 78,957 | 13.6 | 7.0 | 69,533 |
| Risk-weighted assets | 87,755 | 6.1 | 0.0 | 82,746 |
| RORWA (1)(5) | 6.9 | 5.8 | ||
| Efficiency ratio (%) | 30.8 | 30.5 | ||
| NPL ratio (%) | 2.8 | 2.7 | ||
| NPL coverage ratio (%) | 118 | 124 | ||
| Cost of risk (%) | 3.26 | 3.31 | ||
| (1) At constant exchange rate. (2) Revised balances. For more information, please refer to the “Business Areas” section. (3) Excluding repos. (4) Includes mutual funds, customer portfolios and other off-balance sheet funds. (5) For more information on the calculation methodology, as well as the calculation of the metric at the consolidated Group level, see Alternative Performance Measures at this report. |
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Macro and industry trends
The Mexican economy has shown a weaker-than-expected performance in the first quarter of 2026 due to a less favorable evolution of domestic demand - in particular, investment and industry - and a less dynamic labor market. For the second half of the year, a recovery in activity is expected as uncertainty surrounding the renewal of the trade agreement between Mexico, The United States, and Canada (USMCA) decreases and infrastructure investment increases. Overall, BBVA Research places GDP growth for 2026 at 1.2%, compared to 1.8% three months ago. For its part, inflation stood at 3.4% in June, below the 4.6% observed in March, and is expected to remain close to these levels during the coming months, and could close the year at 4.1%, two tenths above what was contemplated in the previous scenario. Given this growth and price context, BBVA Research leaves its forecast for benchmark interest rates unchanged, with 6.5% as the closing level for 2026.
Regarding the banking system, with data at the end of May 2026, the volume of credit to the non-financial private sector increases by 5.5% year-on-year in nominal terms. Generalized growth is observed in all the main portfolios: 11.2% for consumer credit, 4.9% for mortgage loans, and 3.0% for business loans. The growth of total deposits (demand and time deposits) was slightly higher than the credit growth (+6.25% year-on-year in May 2026), with greater dynamism in time deposits (+7.0%) than in demand deposits (+5.8%). For its part, the NPL ratio rose to 2.55% in May 2026, and capital indicators remained comfortable.
Unless expressly stated otherwise, all the comments below on rates of variation, for both activity and results, will be given at constant exchange rate. These rates, together with variations at current exchange rates, can be found in the attached tables of financial statements and relevant business indicators.
Activity
The most relevant aspects related to the area's activity during the first half of 2026 were:
Lending activity (performing loans under management) grew by 4.8% during the first six months of 2026, with a more dynamic performance in the wholesale portfolio, which grew by 5.7% driven mainly by corporate loans, while the retail portfolio increased by 4.0%, with a favorable evolution across all products, although consumer and SME loans stand out once again.
Customer funds recorded an increase of 4.1% in the first half of 2026, with a growth of 1.9% in customer deposits, thanks to the commercial boost in a highly competitive environment to attract liabilities. Especially relevant was the 7.0% growth of off-balance sheet funds.
The most relevant aspects related to the area's activity in the second quarter of 2026 were:
During the quarter, lending activity recorded an increase of 2.1%, with a balanced growth rate in both portfolios. Thus, the wholesale portfolio increased at a rate of 2.0%, favored by the dynamism of corporate lending, while the retail portfolio grew at somewhat higher rate (2.2%), driven by consumer loans and credit cards, favored by e-commerce commercial campaigns.
With regard to the asset quality indicators, the NPL ratio stood at 2.8% as of the end of June 2026, practically stable compared to the end of 2025. Compared to the first quarter of 2026, it recorded an increase of 19 basis points, mainly explained by the growth in the balance of non-performing loans in the retail portfolio, largely derived from the seasonality of the first quarter, as well as by NPL inflows from wholesale customers. This performance of the balance of non-performing loans influenced the evolution of the NPL coverage ratio, which stood at 118% as of the end of June 2026, with a decrease of 11 percentage points compared to the end of March.
Customer funds under management stood 1.6% above the March balances, mainly due to the solid growth of mutual funds and other off-balance sheet funds, which increased by 5.1%. For their part, customer deposits showed an evolution conditioned by specific outflows from corporate clients.
Results
BBVA Mexico achieved a net attributable profit of €2,979 million at the end of June 2026, which represents a year-on-year growth of 8.2%, explained mainly by the favorable evolution of net interest income, supported by robust lending activity growth and, to a lesser extent, by the evolution of fees, NTI and the insurance business.
The most relevant aspects of the year-on-year evolution in the income statement as of the end of June 2026 are summarized below:
Net interest income increased by 8.6%, mainly reflecting the good dynamism of the loan portfolio, with lending volumes mitigating the decrease in the reference rate by the central bank.
Net fees and commissions grew by 7.3%, mainly as a result of the higher revenues from asset management (due to higher balances in mutual funds) and those associated with wholesale operations (administration and advisory).
The contribution from NTI increased by 13.3% fundamentally due to higher results from Global Markets.
The other operating income and expenses line item recorded an increase of 13.7%, favored by the good performance of the insurance business.
Operating expenses grew by 9.1%, mainly due to the increase in overhead costs (technology expenses and advertising expenses) and, to a lesser extent, higher personnel expenses.
Loan-loss provisions increased by 8.1% compared to the first half of 2025, mainly as a result of portfolio growth. Thus, the cumulative cost of risk at the end of June 2026 stood at 3.26%, in line with the same period of the previous year, with a decrease of 19 basis points compared to the previous quarter.
In the quarter, and excluding the effect of exchange rate fluctuations, BBVA Mexico generated a net attributable profit of €1,514m, which represents a variation of +3.4% compared to the previous quarter, driven mainly by the good performance of the net interest income, with a lower level of expenses.
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