Mexico Banking Outlook. First half 2022

Summary

Credit to households has shown greater recovery and is the main impulse for the growth of financing to the private sector, while the weakness of business financing lingers. Likewise, demand deposits maintain their dynamism, while the growth of time deposits remains in red figures.

Key points

• Key points:
• The banking system maintains adequate levels of capital and liquidity, while its profitability recovers due to a lower need to generate provisions.
• The accounting effect of a higher inflation overstates the performance of bank financing in nominal figures.
• The reactivation of economic activity and the rise in consumer confidence have led to the recovery of consumer credit segments.
• Traditional banking deposits regain dynamism, albeit higher consumption and the lack of recovery of term savings could slow down their growth.
• Financing flows to the economy waned, while the public sector maintains the largest proportion of its use.

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