Mexico’s Banorte posts profit boost on insurance, trading units By Reuters

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<span>© Reuters. A general view shows the of headquarters of Banorte Bank in Monterrey, Mexico, June 17, 2019. REUTERS/Daniel Becerril</span><br />
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<p>By Carolina Pulice and Kylie Madry</p>
<p>MEXICO CITY (Reuters) – Mexico’s Grupo Financiero Banorte reported on Thursday a 14% increase in second-quarter net profit, hitting 13.09 billion pesos ($764.68 million) on better results in its insurance and annuities and trading units.</p>
<p>Both units saw 38% profit boosts. </p>
<p>Despite the gains, Banorte still missed an estimate of analysts polled by Refinitiv with earnings per share at 4.539 pesos in the three months to June versus the Refinitiv estimate of 4.61 pesos. Revenue for the group, which owns one of the country’s largest banks and pension funds, totaled 33.06 billion pesos in the quarter, up 19% from a year earlier.</p>
<p>Net interest income (NII), the difference between what banks earn on loans and dole out in deposits, grew 5% year-over-year as the loan book expanded and interest rates were hiked, despite a hit on inflation-indexed securities.</p>
<p>The securities blow also called NII to drop 10% quarter-over-quarter, Banorte said.</p>
<p>Mexico’s central bank held its benchmark interest rate at 11.25% for the second time at the end of June, signaling it will remain there “for an extended period” as inflation slows.</p>
<p>The bank’s performing loan book saw a 12% bump from the year-ago period, with double-digit growth in nearly all divisions. </p>
<p>Loan-loss previsions, however, also jumped 66% from the year-ago period to 4.04 billion pesos, with cost of risk shooting up to 1.66% from 1.13%.</p>
<p>“It’s possible we make some adjustments to the outlook (on a call with analysts Friday), as our past-due portfolio has grown but the interest rates are different,” said Chief Executive Marcos Ramirez in a call with journalists.</p>
<p>Return on equity jumped 187 basis points from the year-ago quarter to 21.4%, which Banorte attributed to its “sound and expanding businesses.”</p>
<p>The firm plans to launch its digital bank at the beginning of 2024, Ramirez added, and the group is working to determine which services it will offer.</p>
<p>Banorte will also grow by some 1,300 account managers in the next few months in its business and corporate sectors, Ramirez said.</p>
<p>($1 = 17.1156 pesos at end-June) </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/mexicos-banorte-posts-profit-boost-on-insurance-trading-units-3130419">Source link </a></p><p>The post <a href="https://forextraderhub.com/mexicos-banorte-posts-profit-boost-on-insurance-trading-units-by-reuters.html">Mexico’s Banorte posts profit boost on insurance, trading units By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>

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