Mexico highlights in the third quarter
- Strong performance of the retail portfolio, especially consumer and SME.
- Double-digit growth of retail customer demand deposits.
- Positive performance of the insurance business.
- Sustained recurring revenue.
- Successful issuance of capital notes on international markets.
Industry Trends
Mexico’s financial system remains stable and sound. This is reflected in its adequate liquidity position, and its high solvency, which is far above the regulatory minimum.
Commercial bank lending to the private sector continues to expand steadily. At the close of August it registered the 19th successive month of double-digit growth rates. The best performing portfolios are consumer finance (payroll accounts and personal loans) and corporate lending.
In customer deposits, the retail segment also performed well, while time deposits grew at a slower pace as they were replaced by investment companies (SIDs).
Both the fixing and average peso/euro exchange rates appreciated over the quarter and the last 12 months. This has had a positive impact on the balance sheet and activity for the last 12 months and the quarter, and to a lesser extent on the Group’s income statement. Unless otherwise indicated, all comments below on percentage changes refer to constant exchange rates, with the aim of providing a better understanding of the performance of the business in Mexico.
