Mexico’s Banorte Witnesses Jump After Q4 in April
Grupo Financiero Banorte, one of Mexico’s leading financial institutions, announced on Wednesday a robust 13% increase in its net profit for the final quarter of 2023. This significant growth was propelled by a combination of factors including strong loan growth, reduced costs, and improved efficiency measures. The financial group, which boasts ownership of one of the country’s largest banks and pension funds, reported a net profit of 13.04 billion pesos ($768.8 million) for the quarter, marking a substantial uptick from the previous year.
Revenue for the final quarter witnessed a hike, which now increased up by 10% year-on-year, which now reached 34.89 billion pesos. Company’s Chief Executive Officer Jose Marcos Ramirez is positive about the group’s prospects and forecasted a revenue growth of approximately 10% throughout 2024. This bullish outlook is based on Banorte’s ongoing efforts with a vision to expand its portfolio of services and aim to attract new customers.
Banorte’s impressive performance was underscored by a robust 12% increase which was seen in the quarterly loan portfolio compared to the same period last year. The growth is basically due to the institution’s strategic approach to customer selection, which is effective for loan origination, bringing rise in profit.
Furthermore, Banorte achieved a commendable return on equity of 20.9% during the quarter, highlighting the efficiency and profitability of its operations. Net interest income (NII), a key metric for banks representing the difference between interest earned on loans and interest paid on deposits, grew by 9% year-on-year, further bolstering the institution’s financial performance.
Looking back at the full year of 2023, Banorte reported a stellar net profit increase of 15%, totaling 52.42 billion pesos. This impressive growth was fueled by a surge in credit origination volumes and favorable interest rate dynamics.
In an effort to capitalize on the growing demand for digital banking solutions, Banorte announced plans to launch its new digital arm on January 29. This strategic initiative is expected to enhance the institution’s competitiveness in the digital banking landscape and attract customers seeking seamless digital banking experiences.
As Banorte continues to strengthen its position in Mexico’s financial sector, investors and stakeholders remain optimistic about the institution’s growth trajectory. With a focus on innovation, customer-centricity, and strategic expansion, Banorte is well-positioned to capitalize on emerging opportunities and drive sustainable growth in the years ahead.
The completion of Banorte’s digital arm launch and its anticipated revenue growth in 2024 are expected to further solidify the institution’s position as a key player in Mexico’s financial services industry.
