Banco del Bajío Projects 13% Increase in SME Loans
Banco del Bajío is confident that its portfolio of loans for businesses and SMEs will grow by up to 13% by the year 2025, driven by companies in the agricultural sector that are exporting to the United States. This bank, which primarily focuses on providing financing to businesses, has noted that its growth expectations are lower than those observed in 2024, as they anticipate a slowdown in the economy.
Regarding the financial sector outlook, Banxico adjusted its economic growth projections for Mexico on February 19, estimating that the GDP will increase by 0.6%. Previously, back in November, a growth rate of 1.2% was expected. The projection for 2026 remains at 1.8%. By the end of 2024, Banco del Bajío reported a loan portfolio of 266.057 billion pesos, representing an 11% increase compared to 2023. “The SME portfolio is undoubtedly our most important business. When considering the total, we rank as the eighth bank; however, in the SME loan sector, we are in fourth place, which makes it very relevant for us,” explained Edgardo del Rincón, the bank's CEO.
The director emphasized that the bank's growth projections already account for a slowdown in the economy and the uncertainty caused by U.S. policies, which are considering imposing tariffs on Mexico. "Some projects may be delayed for this reason, until a clearer environment is established," he added. Additionally, Banco del Bajío estimates that its overall loan growth will range between 8% and 11%, a figure higher than some of its competitors. For large corporations, growth is expected to be between 7% and 8%, while for SMEs, the outlook is more optimistic, reaching up to 13%. On another note, they see significant dynamism in consumer credit, which is expected to grow by up to 20%. “We are pleased that we can meet our goals and that this represents healthy growth,” he stated.
Concerning the designation of six drug cartels in Mexico as terrorist organizations by the Donald Trump administration, this suggests that operations in the financial and real estate sectors will be under increased scrutiny. Despite this, Mexican authorities do not plan to make regulatory changes. "The preferred method of the cartels for laundering money is through financial instruments and real estate," said Carlos Valderrama, co-founder of Legal Paradox. This expert asserted that, although Mexico already has solid legislation on anti-money laundering (AML) and counter-terrorism financing, traditional banks, fintechs, and other financial institutions will need to enhance their controls.
It is interesting to observe how, despite the challenges and economic uncertainty, institutions like Banco del Bajío continue to trust in the growth of their loan portfolio. The key will be adapting to environmental conditions and maintaining robust risk control, especially under regulatory pressure and market evolution. SMEs are fundamental to the Mexican economy, and their financial development can serve as a powerful engine in times of volatility.
