Background on Banco del Bajío (BanBajío)
BanBajío, a prominent Mexican bank, reported mixed results for the third quarter of 2025. Although its profitability decreased, the bank’s performance surpassed market expectations due to strong credit portfolio growth and effective cost management.
Credit Portfolio Performance
BanBajío’s total credit portfolio reached 268,199 million pesos, marking a 5.4% annual increase. This growth was primarily driven by the expansion in business loans (+7.7%) and consumer credit (+13.1%).
- The growth in business and consumer loans partially offset the declines observed in housing (-15.6%), government (-14.5%), and financial institutions (-6.3%) segments, according to an analysis by Casa de Bolsa Ve Por Más (Bx+).
Financial Margin and Cost Control
The financial margin stood at 5,283 million pesos, a 9% decrease from the same period last year (5,803 mdp). This reduction can be attributed to an 11% drop in interest income, caused by a decrease in the average rate on assets, which stood at 10.5% during the quarter.
Moreover, interest expenses also declined by 13.4%, helping to mitigate the impact on the margin.
Analysts’ Perspective
“BanBajío’s financial results surpassed consensus estimates for both operating and net results; however, they continue to show contractions due to economic weakness, high comparison bases, and lower interest rates,” stated analysts from Bx+.
Net Income and Mortgage Delinquency
BanBajío’s net profit fell 10.2% compared to Q3 2024, mainly due to increased administrative expenses. However, this decrease was partially offset by lower tax payments.
The mortgage delinquency rate rose by 48 basis points, reaching 1.97% at the end of the quarter, indicating a slight deterioration in portfolio quality.
Key Questions and Answers
- Q: What were the main factors contributing to BanBajío’s mixed Q3 results?
A: Despite a decrease in net profits, BanBajío’s performance surpassed market expectations due to robust credit portfolio growth and effective cost management.
- Q: How did BanBajío’s credit portfolio perform in Q3 2025?
A: BanBajío’s total credit portfolio grew by 5.4% annually, driven mainly by business loans (+7.7%) and consumer credit (+13.1%).
- Q: What caused the decline in BanBajío’s financial margin?
A: The financial margin decreased by 9% due to an 11% drop in interest income and a 13.4% reduction in interest expenses.
- Q: How did analysts view BanBajío’s Q3 results?
A: Analysts from Bx+ noted that, although results surpassed consensus estimates, they still reflected economic weakness, high comparison bases, and lower interest rates.
- Q: What changes occurred in BanBajío’s net income and mortgage delinquency rate?
A: Net profit fell 10.2% compared to Q3 2024, mainly due to increased administrative expenses. The mortgage delinquency rate rose to 1.97%, indicating a slight decline in portfolio quality.
