Banorte exceeds one trillion pesos; profits grow 7%

The institution’s quarterly growth is due to the growth recorded in loans, highlighting credit cards (24%), automotive (23%), consumer (12%) and mortgage (8%).

However, Banorte’s results failed to meet analysts’ estimates in an LSEG survey of a net profit of 14.65 billion pesos for the March-June 2024 period.

“During the second quarter of 2024, Grupo Financiero Banorte maintained solid operating trends despite the volatility resulting from the electoral period in Mexico,” the company said in its second quarterly report of the year.

Return on equity, a metric known as ROE, grew 236 basis points year-over-year to 23.3%. The firm has estimated an ROE of between 21% and 22% by 2024.

“We are growing because customers see the experience. It is about providing better service for customers,” bank executives said at a press conference.

Regarding the non-performing loan ratio, which went from 1.05% to 1.01%, Banorte said that this was due to “a reengineering of processes, recalibration of models and very careful management from the origination to the collection of loans.”

Banorte, which controls Mexico’s largest banks and pension funds, said its net interest income – the difference between what the company earns on loans and what it distributes in deposits – rose 12% year-on-year to 31.9 billion pesos, thanks to a higher volume and mix of loan originations.

Banorte will continue to launch products for women, as well as green products; “everything that has to do with taking care of our world. Only if we have a world, we can do business and it is a win-win situation.”

With information from Reuters.