CNBV, Mexico’s banking regulator, said on Wednesday that Mexican bank credit increased by 12 percent in 2012, a figure short of expectations by Mexican bankers of 15 percent growth.
Corporate loans, which comprise almost half of Mexican bank credit, grew by seven percent in 2012. Consume credit increased by 21 percent and loans to states and municipalities rose by 29 percent. Credit card loans increased 17 percent, personal loans grew by 44 percent and payroll-associated loans increased by 24 percent. Credit card defaults held at 4.8 percent, while unpaid payroll loans increased to 4.1 percent from 2.6 percent in 2011, Fox Business reports.
Bad debt levels for housing loans, which comprise 16.5 percent of the entire credit portfolio, came in at 3.4 percent. Last year, the mortgage loans portfolio grew by 10 percent. Grupo Financiero Banorte SAB, the third largest lender in Mexico, said earlier this month that its loan portfolio grew by 15 percent in 2012.
Last year marked the third consecutive year of economic expansion for Mexico, with its economy growing by four percent in 2012 in part because of the assistance of high employment levels, increased consumer spending and more consumer credit, according to Fox Business.