Mexico's private sector banks posted nine-month net profits of 45.3bn pesos (US$4.18bn), a 8.67% decline year-on-year, banking and securities regulator CNBV reported.
ROE for the nine-month period was 14.0%, down from 17.6% in the same year ago period, while ROA dropped to 1.9% from 2.4%, the regulator said.
Total loans amounted to 1.84tn pesos at end-September, an increase of 14.2% compared to end-September last year.
Performing loans totaled 1.80tn pesos at the end of September, rising 14.3% year-on-year. Of total performing loans, 44.7% were commercial loans, 17.9% consumer loans, 16.1% mortgages, 11.7% loans to financial firms and 9.5% to government entities.
The loan delinquency ratio worsened to 3.03% at end-September from 2.47% a year ago.
Although banks have taken measures on mounting delinquency rates, further deterioration in asset quality, especially consumer loans, is expected if the economy continues to soften, Enrique Castillo, head of banking industry association ABM, told BNamericas.
The consumer loan delinquency rate stood at 8.1% at end-October, the highest among all credit segments, latest statistics from CNBV show.
According to the most recent survey of private sector economists published by the central bank, they predict that GDP growth will be 1.8% in 2008 - down from the previous forecast of 2.0% - and inflation around 6.3% this year, up from the previous forecast of 5.8%.
In 2007, the Mexican economy grew 3.3% and the annual rate of inflation was 3.8%.
As of September 30 this year, Mexico's private sector banks held 3.20tn pesos in assets.
During the third quarter, the local unit of Bank of New York Mellon (NYSE: BK) launched operations, bringing the number of banks to 43.
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