The non-performing loan portfolio of consumer credit reported by Mexican banks reached 53.895 billion pesos (US $2.9 billion) in October, the highest figure ever, according to Mexico’s central bank (Banxico).
The overdue balance of consumer credit — e.g., credit cards, payroll loans, personal loans and auto loans — comprises 3.3% of the overall loan portfolio of private banks at the end of October, which stood at nearly 1.6 trillion pesos (US $87.4 billion).
Banxico reported that the overdue portfolio in the credit card segment reached 16.944 billion pesos (US $929 million), which represented a slight decrease of 1.2 percent compared to the 17.1 billion pesos (US $934 million) reported in the same month of 2024. Total credit card delinquency represents 3.5% of the current portfolio, which reached 482.5 billion pesos (US $26.4 billion).
The delinquency rate on payroll loans (12 billion pesos, or US $656 million) increased by 5.3% over last year, reaching 2.8% of the current portfolio of 425 billion pesos (US $23.2 billion).
Personal loans represented the greatest increase in delinquency rates, rising 47% in real terms compared to October 2024. The outstanding balance reported by Banxico stood at 17.1 billion pesos (US $934 million) in October, a worrisome 6.1% of the current portfolio.
The non-performing loan portfolio has been rising to unsettling levels for several months. During the June 2025 reporting period, Banxico revealed that it had reached a then-record 47.35 billion pesos (US $2.6 billion). In September, that number had climbed to 49.494 billion pesos (US $2.7 billion), a 7.7% increase over September 2024.
The latest default rate report comes as the economy has stagnated, leading into the two busiest months for the financial system, November and December, which included the El Buen Fin shopping extravaganza and will include the beginning of the year-end sales period.
The negative economic growth recorded in 3Q 2025 was the first decline since the first quarter of 2021, when GDP fell 2.6% due to the economic and health crisis caused by the COVID-19 pandemic.
The increase in non-performing consumer loans reflects the economic pressures families face in the context of economic deceleration. The newspaper Debate suggests that financial institutions and government authorities might have to take action in order to mitigate the impact on the economy and on consumer well-being.
With reports from La Jornada and Debate
Source: Mexico News Daily
