Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q4 2018 Earnings Presentation
12 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Jan 25, 2019
Slide 1: Conference Call: 4Q18 Results
GFNORTE Conference Call: 4Q18 Results January 25th, 2019
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: Strong Quarter on Earnings and Returns
Recurring Strong Quarter on Earnings and Returns +30% +9% q/q q/q 4Q18 q/q 2018 y/y EPS 3.53 Net Income 10,182 30% 31,958 34% 2.96 Recurring 8,535 9% 30,311 27% 2.71 2.59 2.44 EPS 3.53 30% 11.08 29% 2.24 2.34 Recurring 2.96 9% 10.51 22% 1.99 2.05 1.79 1.89 1.61 1.67 ROE 23.8% 416bp 20.3% 330bp Recur
Slide 4: Historical Record in Revenues
Historical Record in Revenues Total Revenues Recurring Billion Pesos 29.0 27.4 Quarterly NII +3%. 27.0 25.0 23.8 4Q NIM decreased 30 bp due to the total 25.0 23.0 impact of the assets acquired. 20.9 21.0 Net Service Fees +8% q/q. 19.0 17.0 Excellent results in trading driven by 15.0 derivatives tran
Slide 5: Improving Efficiency
Improving Efficiency Non-Interest Expense +11% Non-interest Expenses +6% q/q; y/y Full year 2018 +10% y/y, in line with 10,013 9,461 guidance, Total 8,732 +6% Cost to Income for 4Q18 was 36.6%; recurring, 40.0% 4Q and 2018. Ongoing positive operating leverage. Personnel 39% 39% 39% 4Q17 3Q18 4Q18 y/
Slide 6: Loan Growth
Loan Growth Consumer Market Share 15.5% 15.0% 14.9% Strategic deceleration in unsecured consumer but market share improving. 14.5% 14.0% 14.2% Leading the growth in auto, mortgages and credit cards. 13.5% 13.0% Good quarter in Commercial and 13.0% Corporates with 7% q/q. 12.5% 12.0% OND J FMAM J J A
Slide 7: Credit Quality
Credit Quality Lowest NPL ratio level in more than five NPL Ratio 3.0% years. 2.5% Improving cost of risk. 2.0% 2.0% 1.8% 1.8% Stable charge-off rate. 1.7% 1.5% 1.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2016 2017 2018 Cost of Risk Charge-Off Rate 3.0% 1.00% 2017 as reported 2.6% 0.75% 2.5% 2.3%* 0.54
Slide 8: 2018 Results
2018 Results 2018 y/y Million pesos Net Income 31,958 34% Recurring 30,311 27% 2018 y/y EPS 11.08 29% Loans 777,192 26% Recurring 22% 10.51 Core Deposits 636,758 8% ROE 20.3% 330bp Total Deposits 759,235 17% Recurring 19.3% 230bp Insurance Premiums 19,596 14% ROA 2.2% 32bp Annuities Assets 123,177 3
Slide 9: Relevant Subsidiaries
Relevant Subsidiaries Net Income NIM of Bank up +46bp y/y, improved by Million pesos 4Q18 q/q 2018 y/y mix on loans, funding cost & rates. Bank 8,645 47% 24,377 35% Bank recurring Net Income +19% q/q. Recurring 6,999 19% 22,731 26% Cyclical behavior in Insurance but Brokerage Sector 303 (9%) 1,198 2
Slide 10: Regulatory Capital Ratios
Regulatory Capital Ratios Capital Adequacy Ratio (CAR) Basel III 17.8% CAR 17.2% 17.6% 17.2% 16.6% 15.1% 15.3% 15.3% 14.7% 14.6% Tier 1 12.9% 15.2% 11.18% 9.18% 12.7% 12.4% 12.1% 11.9% 12.6% 12.7% 12.1% 12.7% CET1 7.68% 11.8% 11.5% 10.8% 2011 2012 2013 2014 2015 2016 2017 1Q18 2Q18 3Q18 4Q18 Dec'18
Slide 11: GFNorte Guidance 2019
GFNorte Guidance 2019 Guidance 2019 Loan Growth 7% – 9% NIM Expansion 10 – 15bp Expense Growth 7% – 9% Efficiency 37.5% – 38.5% Cost of Risk 2.0% – 2.3% Tax Rate 27% – 29% Net Income 35.8 – 36.8 Accretion 8.5% – 10.5% ROE 19.8% – 20.3% 11
Slide 12: Conference Call: 4Q18 Results
GFNORTE Conference Call: 4Q18 Results January 25th, 2019
Grupo Financiero Banorte — Q4 2018 Earnings Presentation on 6ix