Mexico
Highlights for the period January - September 2026
- Credit growth led by the wholesale segment with gains across all retail products
- Continued favorable performance across all gross income components
- Quarterly improvement in the efficiency ratio
- Quarterly net attributable profit remains at high levels
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: 17.0%.
NET ATTRIBUTABLE PROFIT (LOSS)
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATE)
(1) At current exchange rate: 16.9%.
| FINANCIAL STATEMENTS AND RELEVANT BUSINESS INDICATORS (MILLIONS OF EUROS AND PERCENTAGE) | ||||
|---|---|---|---|---|
| Income statement | Jan.-Sep.26 | 𝚫 % | 𝚫 % (1) | Jan.-Sep.25 (2) |
| Net interest income | 9,826 | 17.1 | 8.5 | 8,393 |
| Net fees and commissions | 1,997 | 15.4 | 7.0 | 1,730 |
| Net trading income | 709 | 24.3 | 15.2 | 570 |
| Other operating income and expenses | 494 | 14.8 | 6.5 | 430 |
| Gross income | 13,026 | 17.1 | 8.5 | 11,124 |
| Operating expenses | (3,993) | 17.4 | 8.8 | (3,402) |
| Personnel expenses | (1,847) | 16.1 | 7.6 | (1,592) |
| Other administrative expenses | (1,771) | 19.4 | 10.6 | (1,484) |
| Depreciation | (374) | 14.7 | 6.3 | (326) |
| Operating income | 9,033 | 17.0 | 8.4 | 7,722 |
| Impairment on financial assets not measured at fair value through profit or loss | (2,586) | 13.5 | 5.2 | (2,279) |
| Provisions or reversal of provisions and other results | (38) | (44.8) | (48.8) | (69) |
| Profit (loss) before tax | 6,408 | 19.3 | 10.5 | 5,374 |
| Income tax | (1,886) | 25.2 | 16.0 | (1,507) |
| Profit (loss) for the period | 4,522 | 16.9 | 8.4 | 3,867 |
| Non-controlling interests | (1) | 16.0 | 7.5 | (1) |
| Net attributable profit (loss) | 4,522 | 16.9 | 8.4 | 3,866 |
| Balance sheets | 30-09-26 | 𝚫 % | 𝚫 % (1) | 31-12-25 (2) |
| Cash, cash balances at central banks and other demand deposits | 10,845 | 4.1 | 1.5 | 10,417 |
| Financial assets designated at fair value | 63,465 | 5.5 | 2.9 | 60,136 |
| Of which: Loans and advances | 4,843 | (25.7) | (27.6) | 6,523 |
| Financial assets at amortized cost | 119,724 | 13.5 | 10.6 | 105,494 |
| Of which: Loans and advances to customers | 108,355 | 11.4 | 8.6 | 97,259 |
| Tangible assets | 2,136 | 2.6 | — | 2,081 |
| Other assets | 5,412 | 19.6 | 16.5 | 4,525 |
| Total assets/liabilities and equity | 201,581 | 10.4 | 7.6 | 182,654 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 39,028 | 19.8 | 16.7 | 32,584 |
| Deposits from central banks and credit institutions | 8,382 | 39.0 | 35.5 | 6,028 |
| Deposits from customers | 100,502 | 7.1 | 4.4 | 93,855 |
| Debt certificates issued | 12,389 | 6.2 | 3.5 | 11,664 |
| Other liabilities | 28,812 | 4.7 | 2.1 | 27,507 |
| Allocated regulatory capital | 12,468 | 13.2 | 10.3 | 11,015 |
| Relevant business indicators | 30-09-26 | 𝚫 % | 𝚫 % (1) | 31-12-25 |
| Performing loans and advances to customers under management (3) | 108,256 | 10.8 | 7.9 | 97,744 |
| Non-performing loans | 3,279 | 16.4 | 13.4 | 2,817 |
| Customer deposits under management (3) | 99,655 | 6.2 | 3.5 | 93,817 |
| Off-balance sheet funds (4) | 76,982 | 10.7 | 7.9 | 69,533 |
| Risk-weighted assets | 86,854 | 5.0 | 2.3 | 82,746 |
| RORWA (1)(5) | 7.1 | 6.1 | ||
| Efficiency ratio (%) | 30.7 | 30.5 | ||
| NPL ratio (%) | 2.9 | 2.7 | ||
| NPL coverage ratio (%) | 111 | 124 | ||
| Cost of risk (%) | 3.19 | 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 performed better-than-expected in the second quarter of 2026 thanks to growth in consumption and goods exports, which managed to offset the weaker dynamism of business investment. As a result, BBVA Research has revised its 2026 GDP growth forecast slightly upwards (+0.2 percentage points) to 1.4%, while a slight recovery is expected for 2027 to 1.8% in line with the improvement in investment.
For its part, the latest price figures confirm a moderation of inflationary pressures: the headline rate in September stood at 3.45% and forecasts for year-end 2026 and 2027 keep it at similar levels (3.7% by the end of this year, four-tenths of a percentage point below the previous scenario's forecast, and 3.5% by the end of the following year).
Regarding the banking system, with data from August 2026, the volume of lending to the non-financial private sector increased to 7% in year-on-year nominal terms. Widespread growth was observed across the main portfolios: 12.1% for consumer loans, 4.9% for home purchase loans, and 5.3% for corporate lending. The growth of total deposits (demand and time) was lower than loan growth (+6.3% year-on-year in August 2026), with lower dynamism in time deposits (+4.7%) than in demand deposits (+7.3%). For its part, the NPL ratio rose to 2.51% in August 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 nine months of 2026 were:
Lending activity (performing loans under management) grew by 7.9%, with a more dynamic performance in the wholesale portfolio, which increased by 10.3% driven mainly by corporate loans. For its part, the retail portfolio grew by 5.9%, with a favorable evolution across all products, with particularly strong momentum in consumer lending.
Customer funds recorded an increase of 5.4% in the first nine months of 2026, with a standout contribution from off-balance sheet funds (+7.9%). Likewise, customer deposits grew by 3.5% supported by growth in demand deposits as a result of commercial momentum in a highly competitive environment to attract liabilities. By customer type, growth was concentrated in wholesale balances.
The most relevant aspects related to the area's activity in the third quarter of 2026 were:
During the quarter, lending recorded a total increase of 3.0% following the same trends seen in the first nine months of 2026, with a growth in the wholesale portfolio of 4.4%, favored by dynamism in corporate and public sector lending, outpacing growth in the retail portfolio (+1.8%), which showed a positive performance across all products.
With regard to the asset quality indicators, the NPL ratio stood at 2.9% as of the end of September 2026, with an increase of 13 basis points compared to the end of 2025. Compared to the second quarter of 2026, it recorded a rise of 9 basis points with higher NPL inflows concentrated in the retail portfolios, and recoveries and write-offs at levels similar to the previous quarter. For its part, the NPL coverage ratio stood at 111% as of the end of September 2026, a decrease of 7 percentage points compared to the end of June, mainly due to the impact of the annual recalibration of the parameters in the loss estimation calculation models and the increase in non-performing loans.
Customer funds under management increased 1.3% above June balances, driven mainly by demand deposits, which grew at a rate of 1.7%, where the dynamism of the corporate portfolio stood out.
Results
Mexico achieved a net attributable profit of €4,522 million at the end of September 2026, which represents a year-on-year growth of 8.4%, 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 September 2026 are summarized below:
Net interest income increased by 8.5%, mainly reflecting the good dynamism of the loan portfolio, with lending volumes mitigating the impact of lower benchmark rates. Added to this are lower funding costs, both wholesale and retail.
Net fees and commissions grew by 7.0%, mainly as a result of higher revenues from the asset management business (due to higher balances in mutual funds) and also by fees associated with issuance, advisory, and other securities transactions, as well as from wholesale customer activity.
The contribution from NTI increased by 15.2% and includes higher results from Global Markets.
The other operating income and expenses line recorded an increase of 6.5%, favored by the good performance of the insurance business, which was partially offset by a higher contribution to the Bank Savings Protection Fund (IPAB), associated with the increase in customer deposits.
Operating expenses grew by 8.8%, mainly due to the increase in general expenses, where higher technology and advertising expenses stood out, and, to a lesser extent, by higher personnel expenses, linked primarily to headcount growth.
Loan-loss provisions increased by 5.2% compared to the first nine months of 2025, mainly as a result of portfolio growth. Thus, the cumulative cost of risk at the end of September 2026 stood at 3.19%, with a reduction of 7 basis points compared to the previous quarter, favored by the positive impact of the annual recalibration of the loss estimation model parameters.
In the quarter, and excluding the effect of exchange rate fluctuations, BBVA Mexico generated a net attributable profit, in line with the previous quarter (-0.7%), reaching €1.517 billion, supported mainly by the favorable performance of the net interest income and NTI, although, in the third quarter, higher operating expenses and provisions for financial asset impairments were recorded.
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