Ranking: Mexico's most profitable banks

Tuesday, January 2, 2018

From January to November 2017, Mexican banks reported cumulative net income of 125bn pesos (US$6.3bn), a 27.8% year-on-year increase, according to bank regulator (CNBV).

Adjusted for inflation, which hit an annual rate of 6.63% in November, net income growth reached 20.6% for the first 11 months of the year – the highest growth rate seen for a similar period since 2009, when banks saw a 24.4% real increase in net income.

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Among major banks, Citibanamex (No. 3 by assets) stood out with 52.2% y-o-y growth in net income from January to November, growing to 13.8bn pesos in the period. Meanwhile, No. 7 Inbursa saw an impressive 99.2% jump in net income to 12.9bn pesos.

Furthermore, in December shareholders approved the merger of Mexico's fourth largest bank by assets, Banorte, and the eighth largest, Interacciones. The combined company should displace Santander Mexico and Citibanamex to take the No. 2 spot behind BBVA Bancomer.

The sector saw a newcomer last month. On Dec. 14, the CNBV approved the formal start of operations for Banco Shinhan, an affiliate of South Korean bank Shinhan Bank (part of Shinhan Financial Group), with starting capital of 655mn pesos. Shinhan runs operations in 20 countries, and the Mexican unit will offer financial products and services to Korean firms operating in the country.

In its November report, the CNBV provided financial data on the 48 commercial banks operating in Mexico, not including Shinhan Bank, and offered the following sector statistics for November 2017:

Sector loan book: 4.66tn pesos (US$237bn); +8.9% year-on-year; +1.1% month-on-month

Lending by sector:

Commercial: 2.94tn pesos; +9.0% y-o-y, +0.7% m-o-m;

Government subsector: 525bn pesos; -2.9% y-o-y, -1.8% m-o-m

Consumer: 981bn pesos; +8.5% y-o-y, +2.6% m-o-m;

Housing: 741bn pesos; +8.7% y-o-y, +1.0% m-o-m

Total assets: 8.86tn pesos; +2.0% y-o-y; -0.2% m-o-m

NPL ratio: 2.20% in November, compared to 2.17% in October and 2.27% a year before.

ROA: 1.56% in November, compared to 1.48% in October and 1.31% a year before.

ROE: 14.95% in November, compared to 14.28% in October and 12.57% a year before.

Cumulative net income from January to November for top eight banks (% change is year-on-year):

BBVA Bancomer: 35.4bn pesos; +12.5%

Santander: 15.6bn pesos: +9.4%

Citibanamex: 13.8bn pesos; +52.2%

Banorte: 16.6bn pesos: +23.7%

HSBC: 2.9bn pesos; +2.46%;

Scotiabank: 4.8bn pesos; +22.6%

Inbursa: 12.9bn pesos; 99.2%

Interacciones: 2.4bn pesos; 24.5%