Although in 2020 the banks operating in Mexico continued to record profits, these decreased considerably compared to 2019, due to the impact of the Covid-19 pandemic. In 2021, with the vaccination implemented and the economy reactivated, the sector once again reported significant growth in its profits.
According to the most recent figures released by the National Banking and Securities Commission (CNBV), as of October 2021, banks had earned 146,000 million pesos, 48% more than the 93,000 million obtained between January and October 2020 .
In all of 2020, the sector obtained benefits of 102,000 million pesos, 40% less than the 164,000 million of 2019.
It should be remembered that since the beginning of the pandemic, in March 2020, the banks, together with the authorities, implemented a series of measures to face the effects of the pandemic, such as the creation of additional preventive reserves. In addition to this, as the months went by, the credit activity was decreasing, which generated lower income for different concepts.
In 2021, with the gradual opening of economic activities, bank profits have resumed growth, despite the fact that the loan portfolio has not fully recovered.
Preventive estimates
The CNBV report specifies that the banking result registered until last October is due to a significant decrease in the amount of preventive estimates for credit risks. The banks have explained that, given the behavior of the quality of the portfolio, this year they were no longer required.
But the foregoing also responds to a growth in commissions and net fees charged, as well as results from trading and other income.
Reference-www.eleconomista.com.mx