Weekly Report - 09 August 2012 (WR-12-31)

MEXICO | Banking sector post impressive figures. Mexico’s national banking and securities commission (CNVB) revealed on 6 August that the net profits of Mexico’s commercial banking sector increased by 24.2% in the first half of 2012. According to CNVB data, the net profits of the 42 banks operating in Mexico was M$43.5bn (US$3.25bn). Moreover, the CNVB data shows that the total value of assets in the sector to June was measured at M$5.99trn (US$447.31bn), 7.2% more than the in the same period of 2011. These figures suggests that commercial banking in Mexico remains a profitable business in spite of the recent global financial crisis, which has severely affected some of the world’s top banks, many of which also operate in Mexico. Further highlighting the healthy state of the banking business, the CNVB data also shows that the banks have managed to raise a total of M$3.04trn up to July, 9.7% more than in the same period of last year. This suggests that there is still room for growth for banking in Mexico as there appears to be more than enough savers willing to deposit their money in the banks. The large of inflow of cash has allowed the banks to increase their credit balance by 15.4%, to M$2.8trn, in the first six months of 2012. This means that more money is being fed back into the Mexican economy via loans, which is a positive sign as increased credit availability promotes private sector investment.

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