Consumer credit maintains its momentum to the commercial banking portfolio in October

The credit card current of the commercial Bank The private sector continued to grow in October 2022, driven mainly by the consumer portfolioalthough that of companies and housing also registered increases, this, in the midst of an environment of high inflation and rising interest rates.

According to the monetary aggregates and financial activity of the Bank of Mexico (Banxico), last October the credit portfolio grew 4.5% in its real annual comparison, reaching a balance of 5.35 trillion pesos, against 4.72 trillion in the same month of 2021.

With it, the Current commercial bank credit to the private sector, it threaded its seventh consecutive month of growth, after it fell 20 months in a row as a result of the effects of the covid-19 pandemic.

The consumer portfolio is the one that continues with the greatest dynamism, having grown 8.3% real per year in October, and reaching a balance of 1.16 trillion pesos compared to 994.6 billion in the same month of 2021. This is the largest increase for this portfolio since December 2016, when the increase was 8.7%.

Within this portfolio, it is the credit card the one that registered the greatest increase with 11.3%; then came payroll loans with 7.1%, and personal loans with 5.7%.

For her part, the credit card destined for the acquisition of durable consumer goods (ABCD) registered a real annual increase of 2.9% in October, although domestic automotive financing still showed a fall of 1.4%.

Credit to companies continues with recovery

The document of Banxico It refers that commercial bank credit to companies and individuals with business activity also continued its recovery, and had a growth of 3.4% in October, reaching a balance of 2.89 trillion pesos, which contrasts with the 2.54 billion in the same month of 2021.

Within this portfolio, practically all segments registered growth, according to the report.

Housing keeps its rhythm

The housing creditmeanwhile, maintains its rhythm and in October registered a real annual increase of 3.2%, for a balance of 1.18 trillion pesos, against 1.06 trillion in October of the previous year.

It should be remembered that this portfolio is the only one that has not fallen at any time, even in the most complicated months of the health contingency.

And finally the bank credit destined to non-banking financial intermediaries, grew 11.7% real annual in October, for a balance of 105,000 million pesos.

Growth despite the economic environment

The growth that continues to register the commercial bank credit to the private sector, stands out in an environment of high inflation and rate hikes by the Banxico to try to contain it.

A recent analysis of BBVA Mexico It considers that, going forward, the prospects for a significant reduction in economic growth are consistent with expectations of moderation in credit activity, particularly given the uncertainty about the degree of persistence of inflation.

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