Banamex Still finding its footing post-Citi; Neutral on the BANMEX 6.697% ‘36s

Research evidence excerpt

J P M O R G A N

Latin America Credit Research

10 August 2026

Banamex

Neutral

BANMEX

Still finding its footing post-Citi; Neutral on the BANMEX

6.697% ‘36s

Banamex delivered lackluster 2Q26 results, in our view. Capitalization, lower

administrative expenses, and a resilient NIM were the standout positives. On the

other hand, asset quality continued to deteriorate, lending income disappointed

relative to the bank's strong consumer growth trajectory, insurance results

remained a drag, and the cost/income ratio, while improved, continues to compare

unfavorably to Mexican peers. The quarter also benefited from elevated nonrecurring trading income that may not be repeated in future periods. Looking

ahead, drawing firm conclusions remains challenging given the ongoing

disentanglement from Citi. That said, the key variables to monitor are asset quality

and lending income, particularly in light of Banamex's rapid expansion in the

consumer segment. Overall, against a backdrop of lingering uncertainties and

unattractive valuations, we maintain our Neutral recommendation on the

BANMEX 6.697% '36s, anchored by our view that the structural scarcity of

subordinated paper from Latin American banks is likely to continue providing

technical support for the notes. See more details inside this report.

Credit cards remained the main growth engine of Banamex’s loan

portfolio. Banamex's performing loan portfolio (Stage 1 and Stage 2) reached

MXN 524.4 billion in 2Q26, up 2.3%qoq and 11.4%yoy, outpacing both

Banorte and BBVA Bancomer — albeit from a lower base — and consistent

with management's expectations of 10.0–12.0% loan growth for full-year

2026. Consumer lending (+3.0%qoq; +12.7%yoy to MXN 273.0 billion) was

the primary sequential growth driver, while the corporate book (+2.1%qoq;

+13.4%yoy to MXN 186.6 billion) advanced at a marginally faster pace than

consumer on a year-over-year basis. The mortgage portfolio (+1.3%qoq;

+5.6%yoy to MXN 81.9 billion), in turn, continued to expand more

moderately, also accounting for the smallest share of total lending at 15.1% of

the book. Notably, consumer credit has remained Banamex's core franchise

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