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, with Q4 net income at MXN 2,155 million; loan portfolio grew 4.6% to MXN 278.3 billion, and deposits increased 10.5% to MXN 273.0 billion.

• Asset quality remained strong, with NPL ratio at 1.49% and coverage ratio at 126.5%.

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

• Loan growth was driven by company loans (up 5.2%), consumer loans (up 11.4%), and government loans (up 12.1%), while mortgage loans declined 15.4%.

• Deposit growth outpaced system average, with demand and time deposits as core funding strategies.

Financial highlights

• Net interest income for 2025 was MXN 21,529 million, down 6.0% year-over-year; total revenues were MXN 25 billion, down 2.6% year-over-year, but non-interest income grew 26.2%.

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

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

• Net interest margin for Q4 2025 was 5.77%, down 100 bps year-over-year due to lower rates and portfolio mix.

• Operating expenses increased 8.2% year-over-year, while allowance for loan losses rose 13.7%.

Outlook and guidance

• 2026 guidance: loan growth 8%-10%, deposit growth 10%-11%, NIM at 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%, coverage above 110%, and capitalization ratio above 14%.

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

• Cost of risk forecasted at 0.8%-1% for 2026.

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