BBVA records record profits due to greater demand for credit

In the midst of historical inflation and fear of a possible termination, the banking institution BBVA reported record figures for the end of its third quarter, the entity indicated record numbers in terms of deposits, number of cards and granting of credit. In net income, it reported 62,499 million pesos, during the first nine months of the year, which represented an increase of 35.7% compared to the same period in 2021.

Mexico contributed 52.8% of BBVA’s profits globally and reported historical net profits of 23,805 million pesos. The entity accounts for 27 million clients in the country.

“In 90 years of history of this institution, we have never had these volumes, which we are having today,” commented Eduardo Osuna, CEO of BBVA Mexico, during the presentation of the report.

The banking institution pointed out that the growth derived from a greater demand for credit in the country, a good evolution of the credit quality and higher levels of customer transactions.

“This is the year that we have had the most growth in absolute terms, it is going to be the year of the greatest growth, without a doubt, which reflects the activity of the bank and our capacity to distribute products both in the digital world and through media. physical,” explained Osuna.

Fintech boosted profits at the bank

The director attributed the good results of the year to the digitization of the entity that contributes to cost reduction, “We are using better channels in terms of cost, this whole strategy has to do with the competition that we are encountering with fintech, we have to make everything available in the same terms of these institutions”, he pointed out.

In this sense, the financial transactions carried out in the first nine months of 2022 totaled 2,127 million, within the digital channels (mobile and web) represented 59% of the total operations.

“There are differences in strategies, there are those who decided to make a digital bank, we decided to “be” a digital bank many years ago, each bank follows its own strategy, we are competing with traditional banking, with fintech, which forces us to be better Osuna commented.

High rates do not scare credit

Regarding the granting of credit, the entity reported that despite the increase in interest rates, demand has not decreased, on the contrary, which forced to improve the quality of the portfolio. The productive sector of Mexico was the one that presented the greatest demand, for which the business portfolio registered a balance of 598,000 million pesos, an increase of 18.3% compared to 2012. While credit to the government amounted to 171,671 million pesos.

In the SME sector, the portfolio reached a balance of 93,000 million pesos, equivalent to an annual growth of 18.6 percent.

On the other hand, payroll, car and personal loans totaled 205,943 million pesos, BBVA explained that the growth in the segment was due to the fact that it placed more than 2 million new loans during the first half of the year, 24.6% more than in 2021.

Osuna highlighted that the car loan portfolio showed growth compared to 2021, although the problems in the supply chain of some firms continue to be affected, in addition to mortgages and credit cards.

“This is good news in several ways, credit is very dynamic, very good use is made of cash flow by companies and families,” he said.

In the granting of loans for the purchase of housing, the bank highlighted that it originates one in four of the mortgages in the Mexican market. Mortgage credit amounted to 297,651 million pesos, 12.3% higher than 2021.

As for credit cards, the financial institution reported that it delivered more than 1.4 million cards in 2022, 51.1% more than in the period from January to September 2021.

“There was a change in customer behavior, debit and credit cards are competing, as it should be in a means of payment, the credit card as a means of financing has changed in terms of behavior. That speaks of the good behavior of our users”, explained Osuna.