By Amy Guthrie
MEXICO CITY--The Mexican banking system's loan portfolio
increased by 2.7% during the third quarter versus June, with credit
to consumers picking up an even stronger 5.6%.
Mexican banking regulator CNBV said Monday that the 42 financial
institutions it monitors reported a combined credit portfolio worth
2.65 trillion pesos ($204 billion) as of end-September, up 12.5% on
the year.
Some of the country's largest banks fed the annual credit
expansion, with Grupo Financiero Santander Mexico SAB (BSMX,
SANMEX.MX) showing an 11% rise in its loan portfolio versus
September 2011, while Mexico's Grupo Financiero Banorte SAB (GBOOY,
GFNORTE.MX) increased its credit portfolio by 19% on the year and
Citigroup Inc.'s (C) Banamex unit expanded its portfolio by
14%.
The CNBV said Mexican banks reported an average bad debt rate of
4.8% on credit card debt, 3.7% for housing loans and 5.7% for
personal loans.
The Mexican economy is widely seen growing close to 4% this
year, aided in part by consumer spending and more available
consumer credit. Total credit is seen expanding by around 15% as
employment growth fuels spending.
The banks' combined assets contracted slightly during the
July-September period, to MXN5.95 trillion, while the banks
attracted MXN3.04 trillion in deposits, or 8.2% more than in
June.
Write to Amy Guthrie at amy.guthrie@dowjones.com
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