Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q4 2019 Earnings Presentation
13 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Jan 24, 2020
Slide 1: Conference Call: 4Q19 Results
GFNORTE Conference Call: 4Q19 Results January 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: Profitability Remains Resilient
Profitability Remains Resilient EPS Record High 3.53 3.44 4Q19 q/q y/y 2019 y/y 3.12 3.03 3.07 Net Income 9,010 2% -12% 36,528 14% 2.71 2.96 3.03 2.59 Recurring 6% 35,345 17% 2.44 EPS 3.12 2% -12% 12.67 14% Recurring 6% 12.26 17% ROE 19.0% (59)bp (483)bp 20.1% (21)bp Recurring (95)Bp 19.6% 28bp 1Q 2
Slide 4: Results supported on Core Business
Results supported on Core Business Million pesos 4Q19 q/q y/y 2019 y/y NIM NII Loans 16,403 4% 7% 62,885 10% 6.0% NII Repos 2,132 4% (11%) 8,401 (2%) NII Val. Adjust 69 36% (62%) 180 (9%) 5.9% NII Insurance & 5.7% 1,584 (28%) (10%) 9,112 5% Annuities 5.7% NII 20,188 0% 3% 80,577 8% Net Service Fees
Slide 5: Loan Growth with Quality
Loan Growth with Quality NPL Ratio 2.5% Excellent quarter for Commercial, Corporates and Government, with 6% sequential growth. 1.9% 2.0% Consumer books remains with positive growth 1.7% 1.7% momentum. 1.5% Remarkable credit quality. 1.0% 4Q19 q/q y/y 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2018 2019 Commercial 172
Slide 6: Subsidiaries Growing Earnings Double Digit
Subsidiaries Growing Earnings Double Digit Participation in Net Income of GFNorte Bank Net Income +2% q/q, +14% recurring y/y. Million pesos 4Q19 q/q y/y 2019 y/y Bank 6,729 2% (22%) 26,994 11% Insurance retained premiums up +37% in the Recurring (4%) 25,811 14% quarter. Insurance 744 1% 15% 3,918 1
Slide 7: 2019 on Target
2019 on Target 2019 Goals Actual Loan Growth (ex-Gov) 4% – 5% 2% 1bp annual NIM Expansion 15 –20bp 31pb 4Q Expense Growth 7% – 9% 8% Efficiency 37.5% – 38.5% 39.1% Cost of Risk 2.0% – 2.3% 2.0% Tax Rate 26% – 28% 26% Net Income 36.0 – 36.8 36.5 ROE 19.9% – 20.3% 20.1% 7
Slide 8: Bank Regulatory Capital Ratio
Bank Regulatory Capital Ratio Capital Adequacy Ratio (CAR) Basel III 20.0% 20.3% 18.1% 18.6% 17.8% 17.2% 1.1% Tier 2 16.6% Total 4.7% Tier 1 17.5% 11.18% 9.18% 13.8% 13.1% 13.3% CET1 7.68% 12.7% 12.1% 12.7% 12.7% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Minimum Merger Regulatory RWA +7% +19% +19% +20% +19
Slide 9: Lower Funding Cost Higher NIM
Lower Funding Cost Higher NIM Cost of Funds / TIIE NIM from loan portfolio Funding cost improvement is a competitive advantage in 2020. 9.0% NIM reach 5.9% in Dec19 from 5.4% in Dec18. 8.7% 50% 8.6% NIM 8.5% NIM of Bank 6.6% 6.5% 46% 6.4% 6.3% 6.0% 45% 5.9% Dec’19 8.0% 5.7% 5.7% 5.5% 5.4% NIM of G
Slide 10: Controlled Cost of Risk
Controlled Cost of Risk ROA Cost of Risk Recurring Continuous growth on ROA supported on 2.4% record high Risk Adjusted NIM 2.3% 2.3% 2.2% 2.2% 2.2% 2.2% NIM after Provisions 2.1% 4.70% 2.1% 4.6% 2.1% 2.1% 4.60% 4.5% 4.50% 2.0% 4.40% 2.0% 2.0% 4.30% 4.3% Merger 1.9% 4.20% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 201
Slide 11: Recurring Revenues Expansion
Recurring Revenues Expansion Core Banking Fees Core Banking Fees growth of 8% q/q. q/q Trading revenue compensated with 3,669 +8% Interest Income & Fees. 3,437 3,387 3,000 2,656 y/y Trading Revenues Compensated 2,000 +8% with Net Fees and Interest Income 2.30 bn 1,000 0.51 Interest Income 587 Tradin
Slide 12: GFNorte Guidance
GFNorte Guidance Guidance 2020 Loan Growth 6% – 8% NIM Expansion 5 – 15bp Expense Growth 5% – 5.5% Efficiency 38.0 – 39.0% Cost of Risk 1.9% – 2.2% Tax Rate 26% – 27% Net Income 37.5 – 38.8 ROE 19.6% – 20.1% Macro Estimates 2020 GDP 0.8% Inflation 3.5% Reference Rate 6.50% 12
Slide 13: GFNORTE
GFNORTE Conference Call: 4Q19 Results January 24th, 2020
Grupo Financiero Banorte — Q4 2019 Earnings Presentation on 6ix