Banks of Mexico report historical interest charges in 2022

The income recorded by banks As a result of the collection of interest reported in 2022, they reached a historical amount when rebounding with 35 percent in real termsits biggest advance in 17 years, which was driven by higher interest rates and growth in the loan portfolio.

According to data from the National Baking and Stock Commission (CNBV) revealed that banks received a total of one trillion 174 billion pesos for interest368 billion pesos more than in 2021.

The interest rate of the total credit portfolio ended 2022 at 14.6 percent, on average, its highest level reported in five years. While the balance of the credit portfolio totaled 6 trillion 239 billion pesosand advanced at one of its highest rates since May 2020, with 4.3 percent, in real terms.

Banks report a million-dollar profit in 2022

Due to this good performance of the indicators, which was reflected in the optimal results of the sectorwhich reported a net profit of 236 thousand 743 million pesos in 2022, a record amount, and 20.6 percent higher than the figure for the previous year, in real terms.

Experts assure that this is due to the results of the rate increase by the Bank of Mexico (Banxico) and the economic recovery of the countryin which there was a increased financing activity to companies and families.

“Bank income is breaking records, it is due to greater credit activity due to the recovery of the economy, the rise in interest rates and commissions. For this reason, its profits are 30 percent more than last year and the largest in 17 years. It has a solid and strong bank”, said the director of applied research of the Foundation for Higher Studies (Fundef), Jorge Sánchez Tello.

However, he pointed out that these profits in banks worldwide have generated controversy and in countries like Spain, the government is pressing to impose taxes and limit their benefits. In USAPresident Joe Biden has proposed a control for the commissions paid for the use of credit cards.

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What does the interest rate mean?

The interest rate is the percentage that is charged for the operation that is carried out. It is an amount that translates into an amount of money, through which you pay for the use of money. So it turns on that it is the amount of money that normally corresponds to a percentage of the money operation that is being carried out.