Banking

We present a summary and analysis of the most relevant developments and publications in Mexico's financial regulatory landscape.

Our Big Data high frequency indicator to measure household consumption in Colombia shows a decelerating trend, which has become steeper in the second half of the year. Household expenditure moderation has been driven mainly by goods (in contractive territory) but also by services, as expected.

For the third consecutive month, the contraction in the annual growth rate of current portfolio balances to the non-financial private sector has been milder, which reaffirms that total bank credit is on the way to a recovery, although its magnitude differs across portfolios.

A milder contraction in the annual growth rate of outstanding balances for the second consecutive month provides encouraging signs that the negative impact of the pandemic on banking credit has moved past its worst point and could be on a recovery path.

The net profit of the system in the 1Q'19 was EUR 3.2 Bn. The key factors were weak revenues, cost control, and lower provisions. Deleveraging has continued, although since the end of 2018 there has been a slight upturn in total lending. The NPL ratio continues to fall and profitability has improved compared to 1Q'18.

The net profit of the system in 2018 was €12.4 billion, the highest since 2009. The key factors affecting the results were cost control and lower provisions. The deleveraging of the private sector continues and the level of NPLs maintains its downward trend. Efficiency and profitability improved compared to 2017 levels.