Banco del Bajío ScA Institución de Banca Múltiple (BBAJIO O) Q2 2025 earnings summary

Executive summary

• Net income for 2Q25 was $2,166 million pesos, down 23.9% year-over-year, with ROE at 18.7% and efficiency ratio at 38.9%.

• Loan portfolio grew 6.7% year-over-year, led by 9.5% growth in company loans and 14.4%–15.1% in consumer loans, while government and mortgage segments contracted.

• Total deposits increased 7.0% year-over-year to $263 billion pesos.

• Digital transactions now account for 81% of all amounts transacted, reflecting a successful digital transformation.

• NPL ratio at 1.8%, coverage ratio at 119.1%, and capitalization ratio at 14.5%.

Financial highlights

• Net interest margin (NIM) for 2Q25 was 6.1%, down 85 bps year-over-year due to lower rates and mix effects.

• Non-interest income rose 19.4% pro forma, with strong growth in cash management, bancassurance, and POS fees.

• Expenses grew 7.5% year-over-year, below guidance, driven by branch expansion and infrastructure upgrades.

• EPS for the quarter was $1.82 pesos, with an annualized earning yield of 15.2%.

• Allowance for loan losses increased 85.4% year-over-year.

Outlook and guidance

• 2025 guidance revised: loan growth 5–6%, deposit growth 6–9%, NIM 6.0–6.1%, expenses up 8–10%, efficiency ratio 40–42%.

• Cost of risk guidance increased to 100–110 bps; NPL ratio expected below 1.9%.

• Net income forecasted at $8.5–8.8 billion pesos, ROE between 18.5–19.5%.

• Macro assumptions: Banxico rate 8.25–8.50%, GDP growth 0.0%, inflation 4.0%.

• Management expects gradual improvement in asset quality and cost of risk, with NPL formation to decrease quarter by quarter.