Commercial banking credit maintained its pace at the start of the fourth quarter

Commercial banking credit to the private sector maintained its growth rate in the tenth month of 2024, recording good momentum in its three main components.

According to the Money Concentrations and Financial Activity published on Friday by the Bank of Mexico (Banxico), the current credit portfolio showed a real annual growth of 7.2% in October compared to 7.1% in September. With this, the total balance reached 6.63 billion pesos.

There has been a steady growth in bank credit to the private sector for almost two and a half years (after a sharp fall due to the Covid-19 pandemic), which would close 2024 at a good pace, although, a according to players in the union, e. a slowdown is expected in the future, due to lower economic growth expectations.

Consumer credit is the one that, based on information from Banxico, continued to show the highest growth in October, with a real annual growth of 12.5%, a figure that was, however, slightly lower than the 12.7% of the previous month.

Thus, the portfolio balance of commercial banking customers reached 1.62 trillion pesos.

Within this portfolio, the credit card sector grew by 8.3% in real terms in October (7.6% in September), while payment credit showed an increase of 4.5% in the period (against 4.6% previously) , and borrowers increased 8.2% (against 8.6 percent).

For their part, credits for the acquisition of consumer durable goods (ABCD) increased by 38.5% in real terms annually (against 38.8% in the previous month).

This last result was driven by strong growth in auto credit, the main sector of this portfolio, which continues the good momentum seen in the year, and which increased by 44.1% in October (against 44.7% in September).

Housing growth; companies grow more slowly

At the same time, the housing loan portfolio of commercial banks grew 2.9% real per year in October (2.8% in September), bringing the balance to 1.40 trillion pesos.

While the portfolio of bank credit destined for companies and individuals with business activity grew 6.2% real per year in October (against 6.6% in September), for a balance of 3.44 trillion pesos.

In this sector, the effect of a greater flow of credit is already being seen due to the phenomenon of moving production chains, known as nearshoring, as, for example, funding for the transport and storage sector showed an increase of 26.3. % in October.

And finally, according to Banxico information, credit given by banks to the non-banking financial intermediary sector increased 15.8% in October (compared to 6.3% in September), reaching a balance of 161,000 million pressure.

They expect to increase in companies

Information from Banxico itself, shows that, in terms of expectations for credit demand for the fourth quarter of 2024, commercial banks expect an average increase in the sectors of large non-financial companies, other non-banking intermediaries and credit cards.