trending Market Intelligence /marketintelligence/en/news-insights/trending/lca0zm-rbcqnbjsyhfyiiw2 content
BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
PRIVACY & COOKIE NOTICE
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In this list

Fitch revises 2017 outlook for Mexican commercial banks to negative

Street Talk Episode 41 - How to Win the Funding Battle, Use Fintech to Play Offense

Forward Spark Spreads Suggest Rising Profitability Of US Renewables As Sector Matures

MA Activity The Big Story In Mature Online Video Platform Market

Martina Cheung Backs The Quality Program


Fitch revises 2017 outlook for Mexican commercial banks to negative

Fitch Ratings on Dec. 16 revised its rating and sector outlooks for Mexican commercial banks to negative following a similar outlook revision on Mexico's sovereign rating.

The rating agency expects performance of the sector to deteriorate over the next 12 to 24 months relative to recent metrics.

The prospects for loan growth and asset quality in 2017 look less certain now and depend on the feasibility of the implementation of U.S. protectionist measures and the evolution of investor and consumer confidence. Fitch expects loan growth to slow to a range of 6% to 8% in 2017.

Fitch said the strong position of the country's banking sector is now more uncertain. "The overall conditions in the industry include increasing interest rates, which have benefited banks' net interest margins, adequate funding and liquidity profiles, and a strong and resilient loss absorption capacity since Mexican banks are well capitalized and sustained by recurrent earnings," Fitch noted.

Asset quality metrics and loan provisioning of the sector will face challenges due to stagnant growth in the Mexican economy, inflation pressures, and a tougher and more volatile global environment.

Mexico's financial inclusion target for 2018 of 40% of GDP will be difficult to achieve due to increased uncertainty, the rating agency noted.