Banco del Bajío ScA Institución de Banca Múltiple (BBAJIO O) Q3 2024 earnings summary

Executive summary

• Net income for 3Q24 was $2,525 million, down 8.3% year-over-year, while revenues grew 6.1% and net interest income rose 5.2%.

• Return on average equity (ROAE) was 24.2% and return on average assets (ROAA) reached 2.9% for the quarter.

• Total loan portfolio expanded 10.8% year-over-year, reaching $254.6 billion, with company loans up 13.9% and deposits up 7.4%.

• Non-performing loan (NPL) ratio stood at 1.49% and coverage ratio at 141.1%.

• Net interest margin (NIM) was 6.9%, down 18 bps year-over-year due to lower rates and asset-liability mix.

Digital transformation

• Digital channel transactions increased 27.9% year-over-year, with transaction value up 28.7%.

• 83% of transaction volume and number are now through self-service channels.

• Clients with digital transactions grew 24.3% year-over-year, with individual clients up 31.7%.

• Mobile channel transactions surged 44.3% year-over-year, with individual transactions up 49%.

Loan portfolio and deposits growth

• Total loan portfolio reached $254.6 billion, up 10.8% year-over-year; company loans grew 13.9%.

• Consumer loans increased 27.7%, while government and mortgage loans declined.

• Total deposits rose 7.4% to $241.3 billion, with time deposits up 14.2% and demand deposits up 0.9%.

• Interbank loans increased 10.5% year-over-year.