Grupo Fin Banorte Se Stock Earnings Reports

Grupo Financiero Banorte reported a solid Q1 2026 driven by resilient core business performance despite macro and geopolitical volatility. Key financials: group net income MXN 15.5 billion (+1% y/y), bank net income MXN 11.7 billion (+6% y/y), ROE 23.9% (bank ROE ~30%), ROA 2.4%, group capital adequacy 19.7%. Net interest income and margins remain resilient (bank NIM ~6.6%) supported by funding optimization and growth in consumer lending. Loan book grew ~6% y/y (11% consumer growth; auto +30%, credit cards +14%, payroll +12%, mortgages +6%). Asset quality appears contained: NPL ratio ~1.4% and write-off rate stable at ~0.43%. Cost of risk increased q/q to ~2.18% driven largely by (1) a consolidation/base effect of Tarjetas del Futuro, (2) a scheduled recalibration of internal risk models, (3) retail portfolio growth, and (4) additional provisions for a specific wholesale exposure; management stresses these are prudential/model-driven and included in guidance. Management reaffirmed FY guidance, expects limited further Banxico easing (one 25 bp cut to 6.5% year-end), and sees GDP around 1.8% for Mexico in 2026. Capital: temporary regulatory/RWA effects reduced CET1 in Q1 (core Tier 1 reported ~12.7%) but management expects ~80–90 bps recovery (and normalization toward ~13.4–13.5%) by mid‑year/July plus healthy organic capital generation. Strategy highlights: continued investment in AI (aiming for broad operational adoption and personalized “agent per client”), focus on disciplined risk management, cross‑sell expansion, and a proposed cash dividend equal to 50% of 2025 net income (MXN 10.45/share) to be voted at the annual meeting.