Mexico's credit card delinquency hits 4.5-year high

Mexico's banking sector is grappling with a significant surge in credit card delinquency and bad debt, reaching a four-and-a-half-year high in June. The Adjusted Delinquency Index (Imora) for credit cards climbed to 13.7% of the total portfolio, a level not seen since December 2021, according to the National Banking and Securities Commission (CNBV).

Imora offers a comprehensive view of loan deterioration by including both overdue payments and credits written off by banks in the past 12 months. This rise in bad debt occurs even as credit card usage shows robust dynamism. By the end of June, the total balance of credit card portfolios reached 735 billion pesos, an 8.2% increase compared to the same period in 2025.

While overall bank financing maintained its momentum, growing 3.2% in June, credit to consumers, particularly auto loans and credit card balances, drove this expansion. However, the delinquency rate for consumer loans edged up to 3.3% in June from 3% a year earlier. Personal loans showed the highest non-payment rates at 5.2%, followed by microcredits at 4.7%. Credit card delinquency also rose to 3.6% from 3.3% over the year.

Bank of Mexico surveys indicate that while a majority of major banks did not foresee changes in their consumer loan portfolio quality this year, a significant portion anticipates a moderate deterioration. This suggests a cautious outlook for the sector amidst rising non-payment indicators.

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the financing maintained its dynamism in June, registering growth of 3.2%, above the 1.7% increase observed in May.