Banco del Bajío, S.A., Institución de Banca Múltiple Price & Performance (BBAJF)

Mexico's central bank has reduced its policy rate forecast for the end of 2025 to 7.75%, a 25 basis point drop from previous estimates. Economic growth projections remain modest, with expectations of a slight contraction this year and a moderate rebound in 2026, reflecting ongoing financial sector uncertainties.1

Banco del Bajío reported first-quarter net income of MXN 2.49 billion, down 10% year-on-year, with revenues of MXN 5.82 billion, a 2.7% decline. Despite the drop, both revenue and earnings per share slightly exceeded analyst forecasts, and shares rose 1.1% over the past week.234

Banco del Bajío trades at a price-to-earnings ratio of 5.7x, below the sector average of 8.7x, and shows a 20% analyst upside target. While recent results indicate margin pressure, its valuation and growth forecasts position it as a potentially undervalued player in the Mexican financial sector.56