Banorte profit climbs as consumer credit demand surges

Revenues reached 43.15 billion pesos, a 12% increase year-over-year that surpassed the 42.41 billion peso forecast. The bank’s return on equity climbed to 25.7%, marking a 209 basis-point improvement from the previous year. Growth centered on the consumer segment, where auto and payroll loans each expanded 4% sequentially, while credit card lending rose 2%.

Net interest income dipped 5% from the prior quarter, pressured by the lower valuation of inflation-linked securities. However, the bank mitigated this impact through technical reserve adjustments. Meanwhile, loan loss provisions dropped 12% quarterly following June regulatory changes regarding government-backed credit, even as they rose 26% compared to the same period last year to align with overall portfolio growth.

In a concurrent leadership shift, the bank appointed Tomas Lozano as chief financial officer. Lozano, a 19-year veteran of the firm, moves from his role heading investor relations and corporate development. He will report to Rafael Arana, who will continue to serve as chief operating officer after previously holding both the CFO and COO titles.