Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O

Grupo Financiero Banorte Sab De Cv Class O — Q3 2024 Earnings Presentation

28 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, November 2024

  1. Slide 1: 3Q24

    Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 3Q24 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 1 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App

  2. Slide 2: Contents

    Us History and Business Highlights → Us Mkt Market Presence → Mkt TI Digital Bank → TI Results NIM NIM NIM → C/I Cost to Income C/I NI Net Income → NI ROE ROE / ROA → ROE Deposit & Loans L/D Loans / Deposits → L/D Dep Deposits growth → Dep Loan Loan growth → Loan AQ Asset Quality - NPL AQ ICAP CAR I

  3. Slide 3: From Regional Bank to Second Largest National Financial Group

     From Regional Bank to Second Largest National Financial Group 15.1%* 4,5,6 Plan 1,2,3 Plan 20|20 Plan • Best • Banorte’s experience Client Digital Business Diversification Segmentation Transformation • Best * Loan book IT : central DB, personalized Market Share • JV Rappi offer Inorganic Growth mu

  4. Slide 4: Nation Wide Operation 3Q24

    Nation Wide Operation 3Q24 1,177 Branches 11,027 ATM 220,237 POS 17,960 Correspondents Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 4 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App

  5. Slide 5: A Leading Bank in Mexico

    A Leading Bank in Mexico Globally Recognized Balanced business mix Strong retail, wholesale and premium banking platforms. Sound Fundamentals Solid asset quality, increasing profitability, high liquidity and strong capitalization ratios. Investment grade ratings S&P, Fitch, Moody’s, and HR Ratings.

  6. Slide 6: Strategy – Client centric & Digital Evolution

     Strategy – Client centric & Digital Evolution PRODUCTS & DISTRIBUTION SOLUTIONS CHANNELS 1M New customer Rappi clients behavior Deposits & Loans Mobile Client Segmentation Insurances ▪ 13.9 million ex-Afore clients 7.7 million Afore clients Web Rappi JV Consumer focus Digital Bank Pensions ATM ▪ S

  7. Slide 7: Deposit & Loan Market Share

    Deposit & Loan Market Share Deposits Loans Others BBVA Others 22% 22% BBVA 19% 25% Inbursa Inbursa 6% 5% 2nd Banorte HSBC 2nd Scotiabank 7% 14% Banorte 6% 15% HSBC Scotiabank 7% 7% Santander Citibanamex Citibanamex Santander 12% 12% 9% 12% Source: CNBV Aug 2024 Us Mkt TI NIM Rev C/I NI ROE L/D Dep L

  8. Slide 8: Market Share by Segment

    Market Share by Segment Auto Payroll C. Card Mortgage Commercial Government Deposits Aug-23 Aug-24 Aug-23 Aug-24 Aug-23 Aug-24 Aug-23 Aug-24 Aug-23 Aug-24 Aug-23 Aug-24 Aug-23 Aug-24 Banorte 22.2% 18.1% 20.9% 19.8% 9.9% 10.9% 19.6% 19.5% 12.3% 12.7% 26.0% 26.4% 14.1% 13.8% BBVA 27.1% 22.9% 37.2% 37.

  9. Slide 9: Digital Transformation Gaining Share

     Digital Transformation Gaining Share Transactions (Tx) Transactions 3Q24 Branches 1.6% WEB 1,191 (millions) 10% 1,200 POS 22% 1,000 Correspondents 0.2% 800 Call Center 0.4% 9% ATM 600 57% Mobile 400 58% y/y 200 - 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2020 2021 2022 2023

  10. Slide 10: Leaders in the Business & Infrastructure for the Payments Market

     Leaders in the Business & Infrastructure for the Payments Market Rappi JV – Credit Cards and Credits to affiliates POS Transactions 28% y/y Digital 400 Physical 208 The best DIGITAL PLATFORM for aggregators 350 192 300 173 250 190 200 150 255 268 100 199 168 50 0 1Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24

  11. Slide 11: Results

    Results Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 11 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App

  12. Slide 12: Bank Net Interest Margin

    Bank Net Interest Margin NIM 7.0% 6.7% 6.4% 6.5% 6.5% 6.4% 6.3% 6.5% 5.8% 5.9% 5.9% 5.9% 6.0% 5.5% 5.2% 4.8% 4.9% 4.8% 5.0% 4.7% 4.5% 4.5% 4.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q23 4Q23 1Q24 2Q24 3Q24 Previous criteria IFRS NIM 6.0% 5.6% (Post-Provision) 5.5% 5.3% 5.2% 5.

  13. Slide 13: Improving Efficiency

    Improving Efficiency Cost to Income Previous Criteria IFRS 55.2% 53.7% 50.5% 50.9% 52.0% 48.2% 47.5% 47.0% 45.0% 45.0% 41.4% 42.3% 42.0% 45.3% 36.0% 36.1% 37.0% 40.4% 38.2% 32.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q23 4Q23 1Q24 2Q24 3Q24 Revenues & Expenses Million Pesos 30

  14. Slide 14: Strong Net Income

    Strong Net Income Net Income Million Pesos YoY 41,946 7% 21% YoY 40,000 CAGR 2014-2023 +15% 13,000 37,500 35,000 34,549 11,770 12,000 11,715 32,500 30,000 27,493 11,020 11,000 27,500 26,086 26,086 24,834 25,548 25,000 26,289 10,000 22,500 23,158 20,384 18,339 * w/o advanced 20,000 9,000 provisions 1

  15. Slide 15: Constant Positive growth in Profitability

    Constant Positive growth in Profitability ROA 3.0% 2.6% 2.6% 2.5% 2.6% 2.4% 2.5% 2.3% 2.1% 2.02% 2.0% 1.8% 2.2% 1.6% 1.6% 1.4% 1.4% 1.5% 1.5% 1.7% 1.6% 1.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q23 4Q23 1Q24 2Q24 3Q24 Previous Criteria IFRS Recurring 35.0% ROE 31.5% 31.1% 28.

  16. Slide 16: Loans & Deposits

    Loans & Us Mkt TI NIM Rev C/I Deposits NI ROE L/D Dep Loan ICAP App Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 16 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App

  17. Slide 17: Healthy Funding & Loan Portfolio Structure

    Healthy Funding & Loan Portfolio Structure Billion Pesos $1,151 bn 2020 3Q24 Funding $855 bn US 58.6 bn Interbank Money Interbank Money Loans Loans Market Market 5% 1% Time 32% Time Demand 62% Demand Loan Portfolio $1,094 bn $783 bn US 55.7 bn Consumer Consumer Government 18% 15% Government Mortgage

  18. Slide 18: Loyal Deposits Base

    Loyal Deposits Base Deposits CAGR 2013-2023 YoY Billion Pesos +10% 1,100 996 1,018 1,029 962 947 962 1,000 Time Demand Core Deposits 9% 900 840 751 750 750 800 689 685 689 705 713 715 637 667 700 590 623 4% 551 533 538 538 600 509 500 436 414 438 384 384 397 336 351 400 300 291 305 314 255 273 262 2

  19. Slide 19: Continued Growth in Performing Loan Book, Special Focus on Consumer

    Continued Growth in Performing Loan Book, Special Focus on Consumer US 55.7 bn US 23.6 bn Total Loan Portfolio Consumer Portfolio 1,094 1,100 1,065 500 449 463 1,007 428 450 416 1,000 897 371 985 400 900 803 803 YoY 322 323 YoY 756 744 783 350 286 304 800 +11% 267 +11% 300 237 700 604 250 201 CAGR:

  20. Slide 20: Sound Asset Quality

    Sound Asset Quality Non-Performing Loan Ratio 3.07% 2.91% 3.00% Previous Criteria IFRS 2.50% 2.23% 2.00% 1.84% 1.67% 1.64% 1.50% 1.08% 1.01% 0.98% 0.97% 0.95% 0.89% 0.96% 0.94% 1.00% 0.89% 0.98% 0.50% 2012 2013 2014 2015 2018 2019 2020 2021 2022 2023 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24

  21. Slide 21: Sound Asset Quality

    Sound Asset Quality Coverage Ratio 250% 227% 217% 194% 186% 187% 184% 182% 200% 142% 201% 139% 138% 150% 115% 128% 103% 106% 100% Previous Criteria IFRS 50% 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3Q23 4Q23 1Q24 2Q24 3Q24 Cost of Risk 2.8% 3.0% 2.2% 2.5% 2.0% 2.3% 2.0% 1.4% 1.5% 1.

  22. Slide 22: Healthy Liquidity

    Healthy Liquidity Loans to Deposits 105% 100% 97% 95% 95% 90% 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 2016 2017 2018 2019 2020 2021 2022 2023 2024 Liquidity Coverage Ratio - LCR 230% 210% 190% 175% 166% 170% 156% 150% 130% 110% 90% 70% 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 20

  23. Slide 23: Strong Capital Position

     Strong Capital Position Capital Adequacy Ratio Basel III 24.7% 22.8% 22.2% 20.2% 20.7% 20.7% 21.3% 20.2% 19.2% TLAC 18.5% to 2025 17.3% 17.2% 0.2% Tier 2 17.90% 15.3% 15.3% 5.1% 14.6% Total 14.65% Tier 1 +3.250% 20.0% TLAC 4Q23 11.40% 9.40% 15.3% 15.1% 14.7% 15.7% 14.7% 15.5% 13.9% 14.1% 13.9% CET

  24. Slide 24: Analysts’ Opinion & Investment Grade by All Major Rating Agencies

     Analysts’ Opinion & Investment Grade by All Major Rating Agencies Analysts’ Estimates Ratings Agencies (as of Oct 23, 2024) Agency Rating Outlook Date Net Income 2024 $56,715 Target Price $182.7 Standard & Poor’s BBB Stable Aug-24 Maximum $230.0 Number of Analysts 21 Fitch BBB- Stable Nov-23 # BUY

  25. Slide 25: Appendix

    Appendix Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 25 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App

  26. Slide 26: Quarterly Summary

    Quarterly Summary Consolidated Statement of Comprehensive Income and Consolidated Statement of Financial Change Position Highlights - Banorte 3Q23 2Q24 3Q24 9M23 9M24 (Million Pesos) 2Q24 3Q23 Net Interest Income 25,846 26,851 27,648 3% 7% 74,560 80,586 Non-Interest Income 3,840 4,636 4,506 (3%) 17%

  27. Slide 27: Quarterly Summary

    Quarterly Summary Financial Ratios - Banorte 3Q23 2Q24 3Q24 Profitability: NIM (1) 6.5% 6.4% 6.7% NIM after Provisions (2) 5.3% 5.2% 5.6% ROE (3) 28.8% 31.5% 31.1% ROA (4) 2.6% 2.6% 2.6% Operation: Infrastructure 3T23 2T24 3T24 Efficiency Ratio (Cost to Income) (5) 35.2% 36.0% 36.1% Operating Effici

  28. Slide 28: Corporate Responsibility and Sustainability

    Corporate Responsibility and Sustainability Global Initiative Report (GRI Standards) UNEP Finance Initiative International standards on sustainability reporting and disclosure of Initiative that aims to identify, promote and carry out the adoption of best economic, environmental and socialtopics. en

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