Banco del Bajío ScA Institución de Banca Múltiple (BBAJIO O) Q4 2025 earnings summary

Executive summary

• Net income for 2025 was MXN 9,079 million, down 15.1% year-over-year, but surpassed guidance, with Q4 net income at MXN 2,155 million.

• Loan portfolio grew 4.6% year-over-year to MXN 278.3 billion, led by company loans and double-digit consumer loan growth.

• Asset quality improved, with NPL ratio at 1.49% and coverage ratio at 126.5%, supporting a healthy risk profile.

• Total deposits increased 10.5% year-over-year to MXN 273.0 billion, driven by both demand and time deposits.

• Strategic focus on expanding SME centers and regional presence to drive future growth.

Financial highlights

• Net interest income for 2025 was MXN 21,529 million, down 6.0% year-over-year; total revenues declined 4.2% year-over-year.

• Non-interest income grew 9.1% year-over-year, with net fees up 16.3%.

• Efficiency ratio improved to 39.8% for 2025, outperforming guidance and system average.

• Return on average equity was 19.4% for 2025; return on average assets was 2.4%.

• Net interest margin for Q4 was 5.77%, down 100 bps year-over-year due to lower rates and portfolio mix.

Outlook and guidance

• 2026 guidance: loan growth 8%-10%, deposit growth 10%-11%, NIM of 5.4%-5.5%, and net income between MXN 8,250 and 9,000 million.

• ROE expected at 16.5%-18%, NPL ratio below 1.7%, and coverage ratio above 110%.

• Operating expenses projected to rise 7%-9%, with efficiency ratio at 43%-45%.

• Cost of risk expected at 0.8%-1%, capitalization ratio above 14%.

• Macro assumptions: GDP growth 1.3%, inflation 4.0%, Banxico reference rate 6.5%.