Record Profits for Banks Under AMLO's Administration

During the administration of Andrés Manuel López Obrador, banks have reported historic profits amounting to 222.657 billion pesos, an unprecedented figure, according to the National Banking and Securities Commission (CNBV). In this period, two key factors played a significant role in this profit dynamic: first, the Covid pandemic impacted the performance of both the credit portfolio and profits. Then, after the pandemic, the increase in interest rates drove more robust growth in profits.

According to a report by Intercam, although the profitability of banks remains high, the growth in profits has moderated compared to the results from 2022 and 2023, when historically high interest rates boosted these earnings. The institutions with the highest profits include BBVA Mexico, Banorte, and Santander, according to data from the CNBV. In absolute terms, bank profits significantly increased during Peña Nieto's presidency and continued to grow even more under López Obrador.

Growth Slows Down By the end of López Obrador's term, bank profits grew by 59.3%, while during Peña Nieto's administration, the increase was 78.6%, according to the CNBV. Despite this, bank performance during López Obrador's term surpasses that of Felipe Calderón, where profits only rose by 17.3%, reaching 78.291 billion pesos. Banks Hold More Credit than Afores Manage As of last September, the total amount of loans granted by banks to individuals, governments, and businesses reached 7.4 trillion pesos, exceeding by 8% the total managed by Afores, which amounts to 6.8 trillion pesos. However, the growth rate of the loan portfolio was lower in the last administration, with a growth of 42.5%, while during Peña Nieto's period, loan growth was 90%, and 96% under Calderón. Historic Profits During the last banking convention with Andrés Manuel López Obrador as president, held last April, the Mexican banking sector showed optimism, reporting positive financial results. A year after the president urged banks to engage in legal and profitable business practices, López Obrador reiterated during the event, "Friends from the banking sector, keep your operations within the legal framework and continue to achieve fair and reasonable profits." Julio Carranza, president of the Association of Banks of Mexico (ABM), previously noted that these profits were achieved thanks to the stability in the operational rules of the sector during AMLO's administration.

In summary, while the banking sector has demonstrated high levels of profitability and historic profits during López Obrador's term, it is important to consider market conditions and interest rates, as these can significantly impact the economy in the future. The sustainability of these earnings will depend on various factors, including changes in regulation and the global economic context.