Key facts
- Banorte's second-quarter net profit rose 6% to 15.55 billion pesos.
- Total revenues grew 12% year-over-year to 43.15 billion pesos.
- Consumer loan demand, particularly for auto and payroll loans, drove portfolio expansion.
- Tomas Lozano was appointed as the new chief financial officer.
- Return on equity increased to 25.7%.
Grupo Financiero Banorte announced a 6% increase in its second-quarter net profit, reaching 15.55 billion pesos, which slightly surpassed analyst expectations. The growth was primarily fueled by strong demand for consumer loans, including auto and payroll loans which each rose 4% sequentially, and a 2% increase in credit card loans. Fee income also contributed positively to the bank's performance.
Total revenues for the quarter were 43.15 billion pesos, marking a 12% year-over-year increase and exceeding forecasts. The bank's return on equity expanded to 25.7%, a rise of 209 basis points compared to the previous year.
In a significant personnel change, Banorte named Tomas Lozano as its new chief financial officer. Lozano, who has been with Banorte for 19 years and previously led investor relations, corporate development, and financial planning, will report to Chief Operating Officer Rafael Arana. Arana will retain his COO title after previously holding both CFO and COO roles.
Despite the overall profit increase, net interest income saw a 5% decline from the previous quarter, attributed to a lower valuation of inflation-linked securities. However, the bank stated that adjustments to technical reserves offset this impact, leaving net income unaffected. Provisions decreased by 12% compared to the prior quarter due to a regulatory adjustment for government-backed loans, though they rose 26% year-over-year in line with portfolio growth.