Banco del Bajío ScA Institución de Banca Múltiple (BBAJIO O) Q3 2025 earnings summary

Executive summary

• Net income for 3Q25 was MXN 2,267 million, down 10.2% year-over-year but up 4.7% sequentially; ROE at 19.7% and ROA at 2.4%.

• Total loan portfolio grew 5.4% year-over-year, led by 7.7% growth in company loans and 13.6% in consumer loans, while government, financial institutions, and mortgage portfolios contracted.

• Total deposits increased 13.7% year-over-year, supporting strong liquidity and future loan growth.

• Digital transformation drove a 24% CAGR in transacted amounts over five years, with BajíoNet now accounting for 82% of all transacted amounts.

• Asset quality remains solid, with a non-performing loan (NPL) ratio of 1.97% and coverage ratio at 115.8%, outperforming industry averages.

Financial highlights

• Net income for the quarter was MXN 2,267 million; ROE at 19.7% for Q3 and 19.9% for the nine-month period.

• Net interest margin declined 110 bps year-over-year to 5.9%, mainly due to rate sensitivity and asset-liability mix.

• Adjusted revenues decreased 2.8% year-over-year, while non-interest income grew 26.1% year-over-year, driven by strong fee and commission growth.

• Efficiency ratio stood at 39.5% for Q3, with expenses up 9.6% year-over-year, outperforming the system's 47.6%.

• Earnings per share for Q3 was MXN 1.91, 10.2% lower year-over-year, with an annualized yield of 17.1%.

Outlook and guidance

• Management expects to reach the high end of net income guidance (MXN 8.8 billion) for 2025, with loan growth of 5–7% and deposit growth of 6–9%.

• Cost of risk is expected to normalize to 0.9%-1% over the next two to three quarters.

• Sustainable ROE is projected to remain in the high teens, even if rates decline to 6.25%-6.5% by end of 2026.

• NPL ratio expected below 1.9%, coverage ratio above 120%, and capitalization ratio above 14%.

• Non-interest income is expected to continue growing at high teens, supported by digital channel expansion.