A Record-Breaking Quarter for Defaults
Financial service users in Mexico recorded historic levels of credit card and consumer loan defaults during the first quarter of 2026. According to data from the Bank of Mexico, total credit card financing reached 671.72 billion pesos by the end of March. Of that, 23.55 billion pesos—or 3.5% of the total portfolio—is now classified as non-performing, the highest level on record.
Despite these figures, the banking sector maintains that the deterioration has peaked and projects a downward trend for the coming months. Jean-Marc Mercier, CEO of Invex, explained during a media briefing that the rise in non-performing loans is the result of a natural credit cycle compounded by an aggressive expansion of financing that, at times, lacked sufficiently sophisticated risk discipline, leading to over-indebtedness among various customer segments.
“Market delinquency is indeed rising. However, we are perhaps seeing an asymptotic point where it seems we are reaching the level from which we should start to see a decline,” Mercier stated, as reported by La Jornada. The executive noted that, unlike the broader market, Invex has kept its delinquency levels in check, reporting a Non-Performing Loan (NPL) ratio of 2.7% at the start of 2026, a slight improvement from the 2.8% recorded at the end of 2025.
Economic Headwinds and Consumer Strain
This decline in repayment capacity is not an isolated event. According to reports from La Jornada, total non-performing consumer loans reached 58.38 billion pesos in January 2026, a 23.4% year-on-year increase. In that same month, credit cards accounted for 18.25 billion pesos in overdue balances, a 7.6% rise compared to the previous year.
This scenario coincides with a 3.8% annual inflation rate at the start of the year and a notable slowdown in key sectors such as manufacturing and services. Economic analysis from UPAEP suggests that net job losses in the formal sector and the rising cost of basic goods have squeezed household disposable income. Faced with this environment, families have prioritized immediate expenses, often at the cost of meeting their financial obligations to banks.
To mitigate the effects of this climate, Invex continues to focus on specific niches and co-branded partnerships. The bank is sticking to its growth strategy through alliances with firms such as Volaris, Ikea, Amazon, and, most recently, Hilton, aiming to sustain operations despite the widespread economic pressure on Mexican consumers.
