Jesus Sotomayor, director at S&P Global Financial Institution Ratings: “The macroeconomic environment in Mexico remains challenging amid uncertainty over potential tariffs and a broader economic slowdown. These factors could constrain credit growth and add pressure on asset quality indicators. Nevertheless, we still expect loan expansion of around 6 percent in real terms—boosted primary by the still-resilient consumer trend and large corporate financial needs, while non-performing loans plus net charge offs as a percentage of total loans should remain contained at roughly 5.5 percent. Looking ahead, banks will face the challenge of sustaining margins and profitability in the context of further interest rates cuts. Large banks remain better positioned, supported by their robust funding sources derived from their broad retail deposit base, which provides ample financial flexibility to absorb foreseeable declines in policy rates. In contrast, mid-sized and small banks might find it more difficult to secure favorable funding terms…”