BBVA México obtains profits of 25 thousand 499 million pesos; profits fall 0.9%

In the first quarter of the year, BBVA México, the bank with the greatest presence among those operating in the country, obtained profits of 25,499 million pesos, which represented a decrease of 0.9 percent compared to the 25,732 million pesos reported from January to March 2023.

When presenting his results report for the first quarter of the year, Eduardo Osuna, vice president and general director of BBVA, pointed out that the decrease is the result of comparative effects at the same time that the entity created greater reserves to prevent related non-payment risks, especially everything, with the loans that are intended for families.

“Provisions against credit losses are growing 43%. It is an interannual comparison. In the first quarter of 2023 we released many reserves that came from the pandemic crisis, especially in the business world where we restructured and came from a portfolio that came from risk premium levels, especially in individuals, very low because we had taken losses during the pandemic,” the banker said at a press conference.

Despite these results, the banker continued, in the following months the comparative effects will decrease, with which the generation of profits will once again be in positive numbers.

It should be remembered that, at the end of 2023, this institution reported profits of more than 100 billion pesos, a historic amount that was the result of greater credit activity and favored by the high interest rate scenario.

Even with the decrease in profits, the Mexican subsidiary prevails as the one that contributes the most to the profits of the Spanish consortium, contributing 56.5 percent of the total profits.

According to the report, at the end of March, the reserves created for credit risks totaled 13,169 million pesos, an increase of 43.1 percent when compared to the 9,203 million reported in the first quarter of 2023.

The financial margin, which is the difference between the interest collected and those paid, reached 59,315 million pesos, an increase of 9.8 percent compared to the 54,37 million reported between January and March of the previous year.

Thus, the balance of the credit portfolio reached one trillion 663 billion pesos, a figure 9.1 percent higher than what was reported in the first quarter of 2023. The household loan segment (credit cards, personal financing, mortgages, etc.) reached 767 billion pesos, an increase of 13.1 percent.

And consumption continues to rise, since BBVA reported that from January to March it placed 581,000 new credit cards among people, so Osuna considered that the priority today is for families to have a means of financing.