Grupo Financiero Banorte S.a.b. De C.v Stock Earnings Reports

Grupo Financiero Banorte reported a solid start to 2026 despite macro and geopolitical volatility. Key financials: Q1 net income MXN 15.5bn (+1% YoY); bank net income MXN 11.7bn (+6% YoY); group NII expanding (9-10% YoY on loans and deposits), group NIM ~6.6% (bank NIM guidance 6.4%-6.8%); ROE 23.9% (bank ROE ~30%); ROA 2.4%. Loan book grew ~6% YoY (11% consumer growth; consumer is primary growth driver; mortgages +6%, credit cards +14%, payroll +12%, auto loans +30% YoY though guidance for autos is 15-20% for the year). Asset quality remains contained (NPL ~1.4%; write-off rate ~0.43%), but cost of risk rose q/q to 2.18% mainly due to: (1) accounting consolidation of Tarjetas del Futuro, (2) a scheduled recalibration of internal risk models (embedded in guidance), (3) growth in retail portfolios and (4) an additional regulatory provision for a specific wholesale exposure. Management emphasized these are largely prudential/model effects rather than a deterioration in realized losses; excluding those effects cost of risk would be ~2.06% (12-month view ~1.86% excluding one-offs). Capital adequacy remains strong: total capital ratio ~19.7%; core Tier 1 around 12.7% this quarter with management expecting regulatory items and organic generation to restore the typical ~13.4%-13.5% range by mid-year (with ~80–90 bps normalization by July). Liquidity/funding is healthy (70/30 demand/time deposit mix; noninterest-bearing deposits +15% YoY), and management reiterated guidance for margins, loan growth (group guidance 8%-11% with consumer higher), cost of risk (guidance 1.8%-2.1%), and efficiency improvement (targeting ~34% expense ratio for 2026). Strategic priorities: capture USMCA-driven opportunity (monitoring timing — likely clarity by late 2026/2027), continued consumer market share gains, heavy investment and deployment of AI across operations (targeting ~10,000 employees using AI levels 1–2 to improve personalization, cross-sell and efficiency), and a proposed cash dividend of 50% of 2025 net income (MXN 10.45/share) to be voted at the AGM. Overall, management reaffirmed 2026 guidance, described the provisioning increase as largely nonrecurring/model-driven and emphasized capital and liquidity strength and a constructive outlook for capture of trade and infrastructure-related lending opportunities.