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

Grupo Financiero Banorte Sab De Cv Class O — Q4 2024 Earnings Presentation

28 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, February 2025

  1. Slide 1: Banorte

    = ~ 42 BANORTE

  2. Slide 2: Us History and Business Highlights Mkt

    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 CAR CAR

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

     From Regional Bank to Second Largest National Financial Group 15.2%* 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 4Q24

     Nation Wide Operation 4Q24 1,191 Branches 11,284 ATM 223,148 POS 19,719 Correspondents

  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 & SOLUTIONS DISTRIBUTION CHANNELS 1M New customer Deposits & Loans Mobile Rappi clients behavior Insurances Client Segmentation Web Pensions ▪ 20.3 million ex-Afore clients 7.9 million Afore clients ATM Rappi JV Consumer focus Digital Bank Ann

  7. Slide 7: Deposit & Loan Market Share

     Deposit & Loan Market Share Deposits Loans BBVA Others Others 23% 20% BBVA 22% 25% Inbursa Inbursa 6% 4% 2nd HSBC 2nd Banorte 7% Scotiabank 14% Banorte 6% 15% Scotiabank HSBC 7% 7% Citibanamex Citibanamex Santander Santander 13% 8% 12% 11% Source: CNBV Nov 2024

  8. Slide 8: Market Share by Segment

     Market Share by Segment Auto Payroll C. Card Mortgage Commercial Government Deposits Nov-23 Nov-24 Nov-23 Nov-24 Nov-23 Nov-24 Nov-23 Nov-24 Nov-23 Nov-24 Nov-23 Nov-24 Nov-23 Nov-24 Banorte 22.0% 18.0% 20.2% 20.8% 9.8% 11.0% 19.6% 19.6% 12.2% 12.8% 27.1% 27.2% 13.7% 13.5% BBVA 27.1% 22.8% 37.3% 3

  9. Slide 9: Digital Transformation Gaining Share

     Digital Transformation Gaining Share Transactions (Tx) Transactions 1,359 4Q24 Branches 1.4% WEB 1,400 (millions) 1,200 9% POS 1,000 21% Correspondents 0.2% 800 Call Center 0.4% 600 9% ATM 40% y/y 59% Mobile 400 200 - 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 4Q 2020 2021 2022 2023 2024 Customers Using Dig

  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 21% y/y 500 The best DIGITAL PLATFORM for aggregators Digital Physical 231 400 208 300 203 187 200 268 251 100 177 196 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24

  11. Slide 11: Results

    GRUPO FINANCIERO BANORTE

  12. Slide 12: Bank Net Interest Margin

     Bank Net Interest Margin NIM 7.0% 6.7% 6.8% 6.5% 6.5% 6.6% 6.3% 6.4% 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 2024 4Q23 1Q24 2Q24 3Q24 4Q24 Previous criteria IFRS NIM (Post-Provision) 6.0% 5.7% 5.6%

  13. Slide 13: Improving Efficiency

     Improving Efficiency Cost to Income Previous Criteria IFRS 55.2% 53.7% 50.5% 50.9% 52.0% 47.5% 48.2% 45.0% 45.0% 44.9% 47.0% 41.4% 42.3% 42.0% 45.3% 36.0% 37.0% 40.4% 36.1% 38.4% 32.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 4Q23 1Q24 2Q24 3Q24 4Q24 Revenues & Expenses Million

  14. Slide 14: Strong Net Income

     Strong Net Income Net Income Million Pesos 50,000 7% YoY 44,854 6% YoY 13,000 45,000 CAGR 41,946 2014-2023 40,000 12,000 11,770 +14% 10,894 35,000 11,000 34,549 26,086 10,253 30,000 27,493 26,086 10,000 24,834 25,548 25,000 * w/o advanced 26,289 provisions 9,000 18,339 23,158 20,000 * Recurring 15

  15. Slide 15: Constant Positive growth in Profitability

     Constant Positive growth in Profitability 3.0% ROA 2.6% 2.5% 2.5% 2.4% 2.4% 2.4% 2.5% 2.3% 2.1% 2.02% 1.8% 2.2% 2.0% 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 2024 4Q23 1Q24 2Q24 3Q24 4Q24 Previous Criteria IFRS Recurring 35.0% ROE 31.

  16. Slide 16: Loans & Deposits

    Loans & Deposits

  17. Slide 17: Healthy Funding & Loan Portfolio Structure

     Healthy Funding & Loan Portfolio Structure Billion Pesos $1,162 bn 2020 4Q24 Funding $855 bn US 55.9 bn Interbank Money Interbank Money Loans Loans Market Market 4% 1% Time 31% Time Demand 64% Demand Loan Portfolio $1,151 bn $783 bn US 55.4 bn Consumer Consumer Government 18% 16% Government Mortga

  18. Slide 18: Loyal Deposits Base

     Loyal Deposits Base Deposits CAGR 2013-2023 YoY Billion Pesos +10% 1,059 1,029 1,059 1,100 Core Deposits* Time Demand 962 962 10% 840 900 751 750 750 744 744 689 689 715 8% 637 667 700 590 623 551 533 538 538 509 500 436 414 438 384 384 397 336 351 316 314 316 300 273 273 16% 255 223 229 217 300 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 55.4 bn US 22.9 bn Total Loan Portfolio Consumer Portfolio 477 463 477 500 449 1,151 1,151 1,200 450 1,0651,094 371 1,100 400 897 322 323 11% YoY 1,000 350 304 286 900 803 803 300 267 756 744 783 237 800 14% YoY CAGR: 250 201 7

  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% 0.89% 0.96% 0.94% 0.91% 1.00% 0.89% 0.98% 0.50% 2012 2013 2014 2015 2018 2019 2020 2021 2022 2023 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q

  21. Slide 21: Sound Asset Quality

     Sound Asset Quality Coverage Ratio 250% 227% 217% 186% 186% 184% 182% 186% 200% 142% 201% 139% 150% 128% 138% 103% 106% 115% 100% Previous Criteria IFRS 50% 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 4Q23 1Q24 2Q24 3Q24 4Q24 Cost of Risk 3.0% 2.8% 2.2% 2.5% 2.0% 2.3% 1.4% 2.0% 1.5%

  22. Slide 22: Healthy Liquidity

     Healthy Liquidity Loans to Deposits 105% 101% 100% 97% 95% 95% 90% 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2016 2017 2018 2019 2020 2021 2022 2023 2024 Liquidity Coverage Ratio - LCR 230% 210% 190% 164% 161% 156% 170% 150% 130% 110% 90% 70

  23. Slide 23: Strong Capital Position

     Strong Capital Position Capital Adequacy Ratio Basel III 24.7% 22.8% 21.8% 20.2% 20.7% 20.7% 21.3% 20.2% 0.2% Tier 2 TLAC 19.2% to 2025 18.5% 17.3% 17.2% 17.90% 8.3% 15.3% 15.3% 14.6% Total 16.275% Tier 1 +4.875% 21.6% TLAC 4Q24 11.40% 9.40% 15.3% 15.1% 14.7% 14.7% 15.5% 14.1% 13.9% CET1 7.90% 13.

  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 Jan 31, 2025) Agency Rating Outlook Date Net Income 2024 $56,550 Target Price $181.6 Standard & Poor’s BBB Stable Aug-24 Maximum $230.0 Number of Analysts 21 Fitch BBB- Stable Nov-24 # BUY

  25. Slide 25: Appendix

    Appendix BANORTE

  26. Slide 26: Quarterly Summary

     Quarterly Summary Consolidated Statement of Comprehensive Income and Consolidated Statement of Financial Position Change Change Highlights - Banorte 4Q23 3Q24 4Q24 2023 2024 (Million Pesos) 3Q24 4Q23 2023 Net Interest Income (1) 26,315 27,648 28,930 5% 10% 100,875 109,516 9% Non-Interest Income (1

  27. Slide 27: Quarterly Summary

     Quarterly Summary Financial Ratios - Banorte 4Q23 3Q24 4Q24 Profitability: NIM (1) 6.6% 6.7% 6.8% NIM after Provisions (2) 5.7% 5.6% 5.5% ROE (3) 27.3% 31.1% 27.8% ROA (4) 2.4% 2.6% 2.4% Operation: Efficiency Ratio (Cost to Income) (5) 44.9% 36.1% 44.9% Infrastructure 4T23 3T24 4T24 Operating Effi

  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.

Grupo Financiero Banorte — Q4 2024 Earnings Presentation on 6ix