Grupo Financiero Banorte, S.A.B. de C.V.

Reported 2Q26 net income was MXN 15.6 billion, up 1% sequentially; first-half net income was MXN 31 billion, up 4% year over year. ROE for the quarter was 25.7%, up 209 bps year over year, and ROA was 2.3%. The bank generated MXN 12.4 billion in quarterly net income, up 6% sequentially, with 1H26 bank net income of MXN 24 billion, up 6% year over year; bank ROE was 32.4% and ROA was 31.3% as stated on the call. Loan portfolio grew 8% year over year, consumer lending rose 10%, auto loans 26%, credit cards 12%, payroll loans 14%, and mortgages 5%; net fees were up 17% year over year. The NPL ratio was 1.5% and cost of risk declined 29 bps sequentially. Management said the bank NIM reached 6.9%, above its prior high-end guidance of 6.8%, and that full-year guidance is reaffirmed: loan growth is expected around 8%-11% overall, NIM around 6.8%-6.9%, expenses to end the year single-digit growth, cost of risk within guidance, bank ROE around 29%-30%, group ROE around 23%-24%, and ROA around 2.4%.

Marcos Ramírez said the quarter reflected the structural strength of the core business, supported by solid margins, lending growth, and disciplined expense management. He emphasized that the annuities/inflation-linked effect was seasonal and neutral to net income, and said Banorte remains confident in a more dynamic second half. He also highlighted Banorte’s view that Mexico’s domestic demand, exports, and infrastructure spending should support activity, while noting the bank is investing in AI, financial inclusion, and long-term customer relationships.

Rafael Arana focused on the bank’s funding and margin story, saying loans-to-deposits are growing around 13% and funding costs are falling at a faster pace. He said cost of funds fell more than 300 bps year over year, non-interest-bearing deposits grew 11%, and time deposits were up around 9%. He also pointed to a bank NIM of 6.9%, net fees growth of 22% at the bank level, cost of risk down 29 bps sequentially, total capital around 21.5%, and core Tier 1 at 12.5%; he said a July model update should add about 62 bps of capital and could lift CET1 to about 13.2% pro forma. Management also said AT1 issuance drew close to five times book and that extraordinary dividends or buybacks remain possible if capital stays above the 13%-13.5% zone.

Analysts pressed on credit card asset quality, loan growth versus peers, funding costs, and capital return. Management said rising credit card delinquency largely reflects portfolio mix and rapid growth in newer vintages rather than structural deterioration, and that safeguards include underwriting, segmentation, analytics/AI, and collections. On growth, management said commercial lending has re-accelerated, consumer demand is healthy, and the loan pipeline remains robust, while reaffirming guidance; on capital, they said there is room for an extraordinary dividend or buyback if capital generation remains strong. They also clarified that a specific correspondent/partner relationship was ended, reducing interchange-related fees paid, and that the mortgage/internal-model recalibration will add about 62 bps of capital in July.