Fitch: Mexican Midsized Banks Gradually Positioning Franchises

MONTERREY, Mexico--(BUSINESS WIRE)-- Midsized Mexican banks have been able to maintain consistent profitability metrics and adequate capitalization despite the slow growth of the country's economy and high competition in the sector, according to a new Fitch Ratings dashboard report. The report also discusses key factors affecting the credit profiles of these banks.

In Fitch's opinion, profitability among these banks is reasonable and consistent due to its sound margins derived from its focus to profitable loans (small and medium enterprises and sub-nationals). Non-performing loans are below the industry average and are also explained by these types of loans. However, asset quality metrics are highly vulnerable to material borrower concentrations.

Fitch considers that the capitalization levels are adequate and reflect the inherent risks assumed by each bank, albeit capital adequacy could be pressured given their aggressive growth expectations. The funding base among these banks is reasonably diversified, Fitch also deems these banks would be able to comply gradually with the new liquidity ratio (Liquidity Coverage Ratio under Basel III) requested by the local regulator.

The 'Mexican Midsized Banks Dashboard' is available on Fitch's website at 'www.fitchratings.com'.

Additional information is available on www.fitchratings.com

Mexican Midsized Banks -- 1H15 Dashboard

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870842

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Fitch Ratings
Bertha Perez
Associate Director
+52 81 8399 9161
Fitch Mexico SA de CV
Prol. Alfonso Reyes 2612, Edificio Connexity Piso 8
Col. Del Paseo Residencial
64920 Monterrey, N.L., Mexico
or
Alejandro Tapia
Director
+52 81 8399 9156
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings

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