Bank credit will continue to grow in 2023: ABM

Despite the fact that the economy is expected to slow down in 2023, the Association of Banks of Mexico (ABM) expects credit to continue growing, as has happened in much of the year that is about to end.

Derived from the pandemic, bank credit registered around 20 consecutive months of falls, but as of April of this year it has registered growth, a trend mainly driven by the consumer portfolio.

Daniel Becker Feldman, president of ABM, stated that, with an expected growth of 3.0% for this year, credit is expected to close with a positive trend.

In this sense, he trusted that in 2023, there will be credit growth, depending on what the Mexican economy registers.

In a meeting with the media, the banker recalled that credit normally grows between 2.0 and 2.5% more than the economy grows.

Regarding the impact that the increase in rates could have on the dynamism of credit, he considered that these would have to increase exceptionally –something that is not expected– for the current trend to be affected, but that the behavior of financing has more than to do with a demand issue, but also with the growth of the economy.

Daniel Becker mentioned that by the end of this year, all credit portfolios will already have reached pre-pandemic levels.

Regarding delinquency, he stressed that it remains at low levels, and that even in the pandemic the consumer portfolio did not exceed 4.5%, being the portfolio that registered the highest level, which was due, he said, to a healthy economy and a better consumer behaviour.

Mexico is going through a historic opportunity

The president of the ABM said that the big question is how the economy will turn out next year, in addition to the fact that there is a perception of a recession in the United States, which could affect it.

However, he stressed that Mexico is going through a historic opportunity, and has advantages such as the demographic bonus and the phenomenon known as nearshoring, among others.

“Mexico is in an enviable position. They are windows of opportunity that are captured or not,” she explained.

Regarding the sale process of Banamex by the American Citigroup, the president of ABM considered that more than a reconfiguration, this bank will recover its market share.

eduardo.juarez@eleconomista.mx