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Argentina’s Consumer Defaults Soar as Mexican Banks Report Robust Profits

Record loan delinquencies and check rejections in Argentina underscore household strain under Milei’s reforms.

Overview

  • The irregularity ratio for Argentina’s private-sector credit climbed to 2.6% in May, a 0.4-point rise from April, official BCRA figures show.
  • Household loan delinquency in Argentina reached 4.5% in May, with personal credit and credit-card defaults at 4.9%, and returned checks at 1.39% of total issuances.
  • Credit-card payment delinquencies in Argentina doubled year-on-year to 3.8%, while the share of cardholders in arrears increased from 2.5% in November 2024 to 3.7% by April 2025.
  • Mexican banks posted 126.6 billion pesos in net earnings from January to May 2025, up 2.08% in real terms, with eight systemic institutions accounting for 79% of the profit pool.
  • Bank credit in Mexico expanded to 7.8 trillion pesos by May, growing 6.5% in real terms and maintaining a low delinquency rate of around 2.08%.