BBVA profits rise 2% in the first half of the year

Mexico CityIn the first half of the year, BBVA México, the financial group with the largest presence among those operating in the country, obtained profits totaling 52,577 million pesos, an increase of 2 percent compared to the 51,540 million reported in the same period last year.

When presenting its results report for the second quarter of the year, the institution stated that from April to June alone, profits reached 27,078 million pesos, a figure 4.9 percent higher compared to the 25,808 million obtained in the same period of 2023.

Last year, in an environment marked by high interest rates promoted by the Bank of Mexico (BdeM), the half-yearly profit growth of the BBVA México financial group was 33.2 percent, while quarterly profits grew at a rate of 23.2 percent.

One of the reasons for the slower growth rate of profits is the increase in the creation of reserves for possible losses, according to official information from the Spanish consortium.

During the first six months of this year, BBVA México created reserves for 25,780 million pesos, a figure 34.2 percent higher than the 19,216 million pesos reported last year.

In the first six months of 2023, the growth rate of preventive estimates for credit risks was 15.3 percent, according to the financial group’s reports.

In this regard, the financial margin, which is the difference between the interest charged to debtors and the interest paid to savers, stood at 115,545 million pesos during the first 6 months of the year, which represented an increase of 10 percent compared to the 105,073 million reported in the same period of the previous year.

The above, given that interest income reached 173 thousand 672 million pesos, and expenses totaled 60 thousand 624 million.

In turn, the financial margin obtained during the second quarter of the year reached 56,230 million pesos, a figure 10.1 percent higher compared to the 51,036 million reported between April and June 2023. Income during this period was 85,371 million and expenses were 30,732 million.

Credit grows 13%

BBVA indicated that the outstanding credit portfolio balance at the close of the first half of the year stood at 1 trillion 758 thousand 362 million pesos, a figure 13 percent higher than that reported at the end of the same period of the previous year, which was 1 trillion 556 thousand 731 million pesos.

“This increase is supported by the dynamism of all portfolios, both those linked to households and families, as well as those of the business and corporate segments,” BBVA added in its report released to the media.

For its part, the balance of the overdue portfolio, which are the loans that have not received payment from their borrowers for at least 90 days, stood at 28,219 million pesos, an amount 18.6 percent higher compared to the 23,799 million pesos that existed at the end of the first half of 2023.

Meanwhile, the balance of deposits, which are the funds that are kept by its clients, stood at 2 trillion 704 thousand 507 million pesos, a figure 13.9 percent higher compared to the 2 trillion 375 thousand 251 million reported at the end of the first half of the year.