This article first appeared on GuruFocus .
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Capital Adequacy Ratio:20.1%, surpassing TLAC requirements of 18.3434%.
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Net Income for the Quarter:15.9 billion pesos, up 22% sequentially.
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Full Year Net Income:58.8 billion pesos, 5% higher than 2024.
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Return on Equity (ROE) for the Quarter:24.2%, 411 basis points higher than the previous quarter.
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Full Year ROE:22.8%, up 36 basis points year-over-year.
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Bank's Net Income for the Quarter:12.5 billion pesos.
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Bank's Full Year Net Income:46.5 billion pesos.
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Insurance Business Growth:23% compared to 2024.
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Loan Portfolio Growth:8% year-over-year, 9% excluding government portfolio.
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Consumer Lending Growth:12% year-over-year.
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Mortgage Book Growth:7% year-over-year.
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Auto Loans Growth:32% year-over-year.
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Credit Cards Growth:14% year-over-year.
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Payroll Loans Growth:11% year-over-year.
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NPL Ratio:1.4% at year-end.
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Cost of Risk:1.8%, in line with guidance.
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Net Interest Income Growth for the Year:6%.
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Net Interest Margin:6.8% for the year.
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Net Fees Growth:22% year-over-year.
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Expense Growth:9% after adjustments.
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Liquidity Ratio:162%.
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Return on Assets (ROA):2.3%.
Release Date: January 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Grupo Financiero Banorte SAB de CV ( GBOOF ) reported a strong quarter with net income reaching 15.9 billion pesos, marking a 22% sequential increase.
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The company achieved a capital adequacy ratio of 20.1%, surpassing the TLAC requirements and supporting high-value returns for shareholders.
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Consumer lending was a significant growth driver, increasing by 12% year-over-year, supported by resilient consumption trends and effective strategies.
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The insurance business grew by 23% compared to 2024, driven by higher premium issuance, particularly in the life segment.
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Grupo Financiero Banorte SAB de CV ( GBOOF ) maintained top-level asset quality with an NPL ratio of 1.4% at year-end, indicating strong risk management.
Negative Points
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The company faced a 2.1 billion pesos unexpected hit due to FX effects, impacting several financial lines.
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There was a noted decline in the coverage ratio, now at its lowest level since 2019, raising concerns about asset quality.
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The integration of Tarjeta del Futuro resulted in a significant one-time charge to equity, affecting the financial statements.
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The competitive landscape is intensifying with fintechs entering the market, potentially pressuring funding costs and customer acquisition.
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The efficiency ratio is expected to be impacted by integration processes, with a target to improve it to 34% in the coming years.
Q & A Highlights
Q: Can you elaborate on the credit growth assumptions and how they relate to economic growth, especially if the USMCA is negotiated favorably? A: Jose Ramirez Miguel, CEO, explained that commercial and corporate loans are expected to grow between 8-10%, government loans 0-4%, consumer loans 10-14%, mortgages 8-10%, credit cards 14-18%, auto loans 15-20%, and payroll 10-12%. Alejandro Padilla, Chief Economist, added that GDP growth is expected to be between 1.4% to 1.8% in 2026, with consumption and investment as key drivers, potentially boosted by the World Cup and infrastructure spending.
Q: There have been some increases in NPLs for credit cards and payroll loans. Can you comment on asset quality and the declining coverage ratio? A: Gerardo Viezca, Chief Risk Management and Credit Officer, noted that the deterioration in payroll lending is due to a temporary statistical effect from losing a large client. Credit card NPLs were affected by the consolidation of a higher-risk portfolio and seasonal effects. Despite a declining coverage ratio, asset quality remains strong, with improving early-stage delinquencies and robust capital strength.
Q: How sustainable are the savings on the funding side, especially with new fintech competition? A: Rafael Arana De La Garza, CFO, emphasized that Banorte competes on client value propositions rather than just product pricing. The bank's strong digital and analytical capabilities allow it to offer comprehensive client solutions, maintaining a competitive funding cost despite fintech pressures.
Q: What is Banorte's strategy regarding fintech competition and digitalization, especially with the integration of Tarjeta del Futuro and BNEO? A: Rafael Arana De La Garza, CFO, stated that Tarjeta del Futuro will be fully integrated into Banorte, enhancing cross-selling opportunities. The bank is focusing on digital evolution and hyper-personalization to attract younger clients, without competing solely on high-yield offers.
Q: Regarding the efficiency ratio, what are Banorte's long-term targets, especially after integrating Tarjeta del Futuro? A: Rafael Arana De La Garza, CFO, mentioned that the goal is to reach an efficiency ratio of 34% or below, leveraging digital and AI advancements. The integration of Tarjeta del Futuro and other strategic moves are expected to contribute to this target over time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
