Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q2 2020 Earnings Presentation
18 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Jul 24, 2020
Slide 1: Conference Call: 2Q20 Results
GFNORTE Conference Call: 2Q20 Results July 24th, 2020
Slide 2: Disclaimer
Disclaimer ▪ This presentation contains certain general information as of the date hereof, information which have been prepared for information purposes only. Information is hereby presented in summary and does not pretend to be exhaustive and detailed. There is no statement or guarantee herein, exp
Slide 3: Relief Program for Consumer Credit and SMEs
Relief Program for Consumer Credit and SMEs 22% of individuals and SMEs registered for the relief program, 16% of loan book. Period: 4 months +2 or +1 o Capital & interest payments deferred for 4 months. o Loan maturity extended 4 months to incorporate % June 30th, 2020 deferred amortizations Applic
Slide 4: Fast Moving to Self-service/Digital Operations
Fast Moving to Self-service/Digital Operations NPS Self-service Transaction Change Jun vs Feb 1 Account statements 408% WEB and ATM Mobile 2 Check deposit 100% 3 Payment of Services 91% 4 Transfers 31% Served by staff 5 Payment to Credit Card 23% 6 Registration of Clarifications 140% 7 Lock and unlo
Slide 5: Banorte – Rappi Join Venture
Banorte – Rappi Join Venture* GFNorte will make available to New Co. (50/50 Banorte/Rappi), up to USD $200 million in 18 months. “We will make financial services Now $50 million, plus $150 million subject to achieve as comfortable as home delivery services” certain performance metrics. GFNorte alway
Slide 6: Profitability Remains Resilient
Profitability Remains Resilient EPS +8% 3.44 3.42 q/q Million pesos 2Q20 q/q y/y 1H20 y/y 3.07 3.12 3.16 3.03 Net Income 6,518 (29%) (25%) 15,636 (16%) 3.03 Recurring* (11%)* 2.26 ex-antic. prov. 9,867 8% 13% 18,985 9% EPS 2.26 (29%) (25%) 5.42 (16%) Recurring* 3.42 (11%) ROE 13.0% (576)bp (646)bp 1
Slide 7: Net Interest Income
Net Interest Income NII Fees affected by lower economic activity. Good quarter for trading income. +6% y/y Total revenues up 8% y/y. 24,000 21,968 22,000 20,683 20,000 19,492 Million pesos 2Q20 q/q y/y 1H20 y/y 18,000 NII Loans/Deposits 15,954 (3%) 3% 32,390 6% NII Repos 2,394 20% 13% 4,397 4% 16,00
Slide 8: Fees on Services Affected But Recovering
Fees on Services Affected But Recovering Fees Fees affected by lower economic activity. 6.0 6.1 Billion Pesos 6.0 5.4 Digital related concepts counteracting 5.0 lockdown impact. 4.0 Electronic Banking services already recovered 3.0 by June, supported by fully digital POS 2.0 2.7 2.4 2.3 operations;
Slide 9: Loan Growth with Quality
Loan Growth with Quality NPL Ratio 2.0% 1.9% Another good quarter for commercial & 1.7% 1.7% Without corporate portfolios. one-hit impact Mortgages still growing despite the pandemic. 1.5% 1.2% Anticipated Credit card and car loans affected. write-off 1.0% Quality and cost of risk still in good shap
Slide 10: Liquidity
Liquidity Strong liquidity, supported by deposit growth in the quarter. Liquidity Coverage Ratio CCL (%) Liquidity coverage ratio above minimum 160% regulatory requirements. 150% 151% 140% 130% 122% 120% 120% 110% 100% 90% 80% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2018 2019 2020 10
Slide 11: Bank Regulatory Capital Ratio
Bank Regulatory Capital Ratio Capital Adequacy Ratio (CAR) Basel III 20.0% 20.3% 19.7% 19.0% 18.1% 18.6% 1.3% Tier 2 17.8% 17.2% 1.1% 16.6% Total 5.2% Tier 1 5.7% 18.4% 11.40% 9.40% 7.90% 13.8% 13.1% 13.3% 13.2% 12.7% 12.1% 12.7% 12.7% 12.2% CET1 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Minimum
Slide 12: Subsidiaries
Subsidiaries Business diversification providing resilient Net Income by Subsidiary results for the Group. Expanding over the year: 1H20 Broker & mutual funds 45%, Insurance 8%, Annuities 43%, Afore 13% Leasing & Warehousing Continuous growth on Insurance profitability Factoring 0.1% Holding and bett
Slide 13: Resilient NIM
Resilient NIM Average reference rate NIM NIM from loans growing upstream (TIIE) from loan portfolio Resistant yield on good portfolio mix 8.2% 8.1% (139bps) +42bps Improved cost of funds 7.8% 6.7% 1H19 1H20 1H19 1H20 NIM NIM of Bank +2bps 5.6% 6.2% 5.6% 6.0% (20bps) 1H19 1H20 1H19 1H20 13
Slide 14: Margin Sensitivity Evolution
Margin Sensitivity Evolution Margin Sensitivity Fixed rate hedges elimination D 100 bps on NII Million pesos Dynamic risk management hedges Variable rate funding 1,000 Active ALCO ▪ A-L rates spread 600 430 4Q18 4Q19 2Q20 14
Slide 15: Anticipating quality deterioration…
Anticipating quality deterioration… Estimated Provisions stressed by COVID-19 Due to the pandemic, Banorte was the first bank to provide a relief program to clients. Additional provisions Proactively building general additional One-hit provisions and writting-off in advance. Impact 4,868 Normalized
Slide 16: Efficient cost to income continues.
Efficient cost to income continues. Cost to Income Ratio Commitment to control the level of non- interest expenses. 40% 38.9% 38.5% 38.8% Non-Interest expenses guidance for 2020: 4.0% - 4.5% 35% 1Q 2Q 3Q 4Q 1Q 2Q 2019 2020 Recurring 25,000 Expenses 20,000 Revenues 15,000 10,000 5,000 1Q 2Q 4Q 1Q 2Q
Slide 17: Selected Industry Exposures
Selected Industry Exposures Vs. Total Loans 2Q20 Oil Industry Pemex 3.4% Pemex Suppliers 1.8% Electricity Company CFE 2.2% CFE Suppliers 0.0% Construction & Real State Housing 1.0% SMEs • 77% Nafin / Bancomext guaranteed 4.4% Commercial 1.8% loans, 45% of SME book Others 1.8% Dollar denominated 11.2
Slide 18: Conference Call: 2Q20 Results
GFNORTE Conference Call: 2Q20 Results July 24th, 2020
Grupo Financiero Banorte — Q2 2020 Earnings Presentation on 6ix