Mexican businessman Carlos Slim (L) is led by a member of the Starlite during a photocall after his arrival at the Starlite Charity Gala in Marbella, near Malaga, southern Spain, August 9, 2014.REUTERS/Jon Nazca
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Grupo Financiero Inbursa SAB is trading at a record as investors bet that billionaire Carlos Slim's bank will benefit from a recovery in Latin America's second-biggest economy with expanded consumer lending.The Mexico City-based bank added 18 branches in the past year for a total of 324 . Retail loans are more profitable because they are riskier than lending to big companies, meaning banks can charge higher interest rates. Auto loans represent more than half of the bank's retail portfolio, advancing 7 percent in the second quarter to 19.7 billion pesos ($1.49 billion). Inbursa's ratio of nonperforming loans fell to 3.4 percent in June from 4.3 percent a year earlier, even as the average of Mexican banks' delinquent loans increased during the same period to 3.3 percent from 3 percent, according to data from the Finance Ministry. Inbursa's number of personal loans more than doubled in the second quarter, reaching almost 250,000 clients and expanding its retail portfolio to 20 percent of total loans. While the bank's rate of delinquent loans has lowered in general, the number of nonperforming retail loans increased to 5.2 percent of total loans in June from 4 percent a year earlier.
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