Strong returns for LatAm banks in Q1 amid commodities boom

Latin American bank stocks jumped in the first quarter amid higher interest rates and commodity prices.

Mexico's Grupo Financiero Inbursa SAB de CV saw the biggest jump among its Latin American peers, up 70% in the first quarter. Fellow Mexican bank Banco del Bajío SA Institución de Banca Múltiple was the second best performer, up 48%, while Peru's Credicorp Ltd. came in third, jumping 41%.

Markets in the region are benefiting from a spike in commodities prices driven by the Russian invasion of Ukraine, as well as central banks pumping interest rates up to curb inflation. The region's distance from Europe has also given it some protection from market fallout, Reuters reported.

On the other hand, Brazil's Banco Inter SA dropped more than 23% for the quarter, when it reported profit that shrank by 67% in the fourth quarter from a year earlier, as well as higher operating expenses.