Mexico’s economy jumped by 5% in 2021, following an 8.2% contraction the year before. Mexican banks were hit by some of the most severe effects of the Covid-19 pandemic, but demonstrated resilience throughout 2021. They improved asset quality and earnings and profitability metrics, while capitalisation, funding and liquidity remained good, according to Fitch.
All of Mexico’s largest five domestic lenders increased their pre-tax profits, with Banco Inbursa recording the largest leap in percentage terms, a 77.8% rise to $842m. For the second year in a row Inbursa, the country’s second-biggest bank, tops the overall best-performance table, which is based on eight indicators. The lender ranks first among its peers in operational efficiency, asset quality, return on risk, soundness and leverage. It also had the highest return on assets across Latin America and the Caribbean, at 3.48%.
