Banks build up reserves

In an environment marked by geopolitical tensions that are affecting economic activity, banks operating in Mexico have set aside more reserves to avoid losses on loans.

As of February, they had accumulated nearly US$2.426 billion—the highest figure for a comparable period on record—according to the National Banking and Securities Commission (CNBV).

At the end of the first two months, provisions for credit risks totaled US$2.419 billion, 23% more than the US$1.885 billion reported during the same period last year.

BBVA Mexico held the largest amount of reserves, with US$830 million, an increase of 68.48% compared to the same period last year. It was followed by Banco Azteca, with US$284 million, equivalent to 11.77% of the total; and Banorte with US$256 million, equivalent to 10.59%.

Santander reported reserves of US$252 million, 10.42% of the total; while Banamex accumulated US$245 million, equivalent to 10.15%. For its part, Inbursa recorded US$77 million, representing 3.22% of the total.