Development banks slow expansion of balance sheets post crisis

Thursday, February 24, 2011

The rate of expansion of Mexico's government-held development banks has slowed, though they show no signs of rolling back the enormous amount of assets built up during the financial crisis.

According to the latest statistics from bank regulator CNBV, Mexico's development banks had 853bn pesos (US$70bn) in assets on their books as of the end of 2010, up 3.4% from a year prior but roughly double the assets reported in mid-2008, just before the financial crisis began.

The sector's credit portfolio stood at 366bn pesos through the end of 2010, up 4.7% during the year.

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Mexico's development banks have stayed profitable throughout the expansion of their balance sheets, posting combined earnings of 6.81bn pesos in 2010.

The largest of the government development banks, Banobras, reported an ROE of 13.3% for the year, while the second largest, Nafin, reported ROE of 7%.