Purpose:

To analyze the relationship between specific and economic factors affecting financial sustainability in the period prior to the COVID-19 crisis and during the COVID-19 period and how each of them contributes to the probability of increasing the return on assets (ROA) of the Popular Financial Societies (Sofipos) in Mexico.

Methodological design:

A database of internal variables of the Popular Financial Societies in Mexico and five macroeconomic variables from various sources during the period 2014-2022 was formed. And using logit regressions, the impact of each of these variables on the probability of microfinance institutions maintaining their financial sustainability, measured by return on assets, was analyzed.

Results:

In pre-COVID-19 three internal and four macroeconomic variables influence the probability of financial sustainability and during COVID-19 four internal and two macroeconomic variables.

Research limitations:

High heterogeneity of the ROA of the Sofipos, five had negative ROA and the other five positives.

Findings:

Although ROA is dissimilar among Sofipos, some have large losses and others high profits, and even so, they continue to develop their activities, showing resilience even in crisis. In the two periods analyzed, the variables delinquency, capitalization index and remittances are statistically significant in explaining the financial sustainability of Sofipos.

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