Banco del Bajío SA Institución de Banca Múltiple's third-quarter profit surged 27.8% from a year earlier, supported by a 23.0% increase in the bank's financial margin income.
The company posted a quarterly profit of about 1.33 billion Mexican pesos, up from 1.04 billion pesos in the third quarter of 2017.
The lender's financial margin, or net interest income, jumped to 2.99 billion pesos in the quarter from 2.43 billion pesos in the year-ago period. Its net interest margin, meanwhile, improved to 5.78% from 5.62% in the second quarter and 5.44% a year earlier.
Banco del Bajío's loan portfolio grew 14.9% in the 12 months through September to reach about 162.53 billion pesos. Company loans, a specialization for the bank, totaled 132.70 billion pesos at the end of the third quarter, rising 16.5% from a year ago.
The company's nonperforming loan ratio increased to 1.05% in the third quarter from 0.95% in the linked quarter and 0.88% a year earlier. Despite the increase, the NPL ratio still compares favorably to the 2.18% banking system average at the close of August, the bank said.
The lender recorded an annualized return on average equity of 20.09% in the third quarter, the highest level for a single quarter in the bank's history. The previous record was 19.18%, posted in the second quarter of this year.
In the third quarter, Banco del Bajío opened a branch in the Mexican city of Durango, where it previously had no presence. The new office brings the company's total number of branches nationwide to 303.
As of Oct. 17, US$1 was equivalent to 18.79 Mexican pesos.