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

Q2 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 basis points year over year, while ROA was 2.3%, broadly stable versus last year. The bank reported Q2 net income of MXN 12.4 billion, up 6% sequentially, with first-half bank net income of MXN 24 billion, up 6% year over year. Loan portfolio expanded 8% year over year, or close to 9% excluding FX effects; consumer lending rose 10%, auto loans 26%, credit cards 12%, payroll loans 14%, mortgages 5%, and government lending 7%. Net fees grew 17% year over year, bank NII grew 15% year over year, and bank NIM reached 6.9%. NPL ratio was 1.5% and cost of risk declined 29 basis points sequentially. Management reaffirmed full-year guidance, with loan growth now described as 8%-8.8% adjusted for FX, bank ROE expected around 29%-30%, group ROE around 23%-24%, and ROA around 2.4%; expenses are expected to end the year in single digits, and NIM is expected to hover around 6.8%-6.9%.

Marcos Ramírez said the quarter reflected the structural strength of the core business, resilient domestic demand, solid margins, loan growth, and disciplined expense management. He framed low inflation in June as a temporary annuities-related headwind that was neutralized at net income by lower technical reserves, and he said Banorte is confident in a more dynamic second half. He also highlighted a constructive Mexico backdrop tied to Plan México, infrastructure spending, and a base case of constructive USMCA review discussions, while maintaining a GDP growth expectation of around 1.4% for 2026.

Rafael Arana focused on funding costs, margin expansion, and capital. He said cost of funds has fallen more than 300 basis points year over year, non-interest-bearing deposits are growing 11%, and bank NII is up 15% year over year, with bank NIM at 6.9% and loan-book spread at 8.9%. He also said the AT1 issuance was close to five times oversubscribed, total capital is around 21.5%, core Tier 1 is 12.5%, and a July mortgage-model benefit of 62 basis points should lift CET1 to about 13.2% before considering income generation; management said that could create room for an extraordinary dividend or buyback.

Analysts pressed on credit card delinquency, funding costs, loan growth, competition, capital returns, fees, and insurance. Management said the rise in credit card delinquency mostly reflects rapid portfolio growth and mix changes, not structural deterioration, and that underwriting, segmentation, analytics/AI, collections, and governance remain tight. On growth and competition, management said commercial lending has re-accelerated, the pipeline is robust, and they are comfortable with guidance; on capital, they said extra dividends or buybacks are possible depending on loan growth and capital generation; on fees, they attributed some interchange pressure to parting ways with low-profit transactional partners.