Traditional banks are deflating
Of the systemically important banks, also known as the G7, profits saw less dynamism. The G7 is made up of BBVA México, Banorte, Santander, HSBC, Banamex, Scotiabank and Inbursa.
Of this group, only Santander recorded double-digit profits of 13%, with 32,329 million pesos, while BBVA, Banorte and HSBC grew at single-digit rates.
By absolute amounts, BBVA México had a profit of 98,946 million pesos, while Banorte reported profits of 47,380 million. HSBC added 7,312 million in profits.
Banamex, Inbursa and Scotiabank were the three banks in the select group that saw profits fall this year. Banamex saw a drop of almost 29%, adding 16,096 million pesos. Inbursa fell 9.4% with 22,528 million and Scotiabank reduced profits by 6.3% with 10,241 million pesos.
A Moody’s report warned that bank profitability will weaken in 2026 as margins shrink in a competitive environment for consumer financing and credit.
In addition, investments in digitalization and operating costs in a more competitive market will impact profits after Banxico’s interest rate helped achieve historic growth in past years.
“Profitability will face increasing challenges as competitive pressures on margins intensify with the formalization and expansion of new entrants,” Moody’s warned.
