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

Grupo Financiero Banorte Sab De Cv Class O — 2Q24 Earnings Presentation

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

  1. Slide 1: 2Q24

    Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App 2Q24 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: Agenda

    Us History and Business Highlights → Us TI Digital Bank → TI Mkt Market Presence → Mkt 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 Dep → L/D Deposits growth Dep → Loan Loan growth Loan → AQ Asset Quality - NPL AQ ICAP CAR →

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

     From Regional Bank to Second Largest National Financial Group 15.0%* 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 2Q24

    Nation Wide Operation 2Q24 1,172 Branches 10,712 ATM 219,586 POS 19,754 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 ▪ 11.5 million ex-Afore clients 8.6 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 2nd 2nd Source: CNBV Apr 2024 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 7 Us Mkt TI NIM Rev C/I NI ROE L/D Dep Loan ICAP App

  8. Slide 8: Market Share by Segment

    Market Share by Segment Auto Payroll C. Card Mortgage Comm + Corp Government Deposits May-23 May-24 May-23 May-24 May-23 May-24 May-23 May-24 May-23 May-24 May-23 May-24 May-23 May-24 Banorte 22.0% 18.1% 20.8% 19.9% 10.0% 10.7% 19.4% 19.5% 11.9% 12.5% 26.5% 26.6% 13.2% 13.6% BBVA 27.7% 22.7% 37.9% 3

  9. Slide 9: Digital Transformation Gaining Share

     Digital Transformation Gaining Share Transactions (Tx) Transactions 2Q24 Branches 1.6% 1,156 WEB 1,200 (millions) 10% 1,000 POS 22% 800 Correspondents 0.2% Call Center 0.4% 600 10% ATM 400 44% y/y 56% Mobile 200 - 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 2Q 2019 2020 2021 2022 2023 2024 Checks from other

  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 Digital 400 Physical The best DIGITAL PLATFORM for aggregators 350 192 300 192 178 250 189 200 150 255 100 190 218 155 50 0 CoDi 1Q22 2Q22 3Q22 1Q23 2Q23 3Q23

  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% 6.4% 6.5% 6.4% 6.4% 6.3% 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 2Q23 3Q23 4Q23 1Q24 2Q24 Previous criteria IFRS NIM (Post-Provision) 6.0% 5.5% 5.4% 5.5% 5.1% 5.

  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% 47.0% 45.0% 45.0% 41.4% 42.3% 42.0% 45.3% 36.3%36.0% 37.0% 40.4% 38.2% 32.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 Revenues & Expenses Million Pesos 30,

  14. Slide 14: Strong Net Income

    Strong Net Income Net Income Million Pesos YoY 32% 21% YoY CAGR +15% 41,946 2014-2023 12,000 11,715 40,000 37,500 35,000 34,549 11,000 10,474 32,500 10,364 30,000 27,493 26,086 26,086 10,000 27,500 24,834 25,548 25,000 26,289 22,500 23,158 20,384 9,000 20,000 18,339 17,500 15,044 * Recurring * w/o a

  15. Slide 15: Constant Positive growth in Profitability

    Constant Positive growth in Profitability ROA 3.0% 2.6% 2.5% 2.5% 2.4% 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 2Q23 3Q23 4Q23 1Q24 2Q24 Previous Criteria IFRS Recurring 35.0% ROE 31.5% 30.0% 27.

  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 $1,130 bn 2020 2Q24 Funding $855 bn US 61.9 bn Interbank Money Interbank Money Loans Loans Market Market 6% 1% Time Time 30% Demand 63% Demand Loan Portfolio $1,065 bn $783 bn US 58.4 bn Consumer Consumer Government 18% 16% Government Mortgage

  18. Slide 18: Loyal Deposits Base

    Loyal Deposits Base Deposits CAGR 2013-2023 YoY Billion Pesos +10% 1,100 996 1,018 962 947 962 1,000 Time Demand Core Deposits 895 14% 900 840 751 750 750 800 705 713 667 689 685 689 637 623 652 700 590 551 9% 600 509 533 538 538 500 436 414 438 384 384 397 336 351 400 300 291 305 255 273 243 262 27

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

    Continued Growth in Performing Loan Book, Special Focus on Consumer US 58.4 bn US 24.6 bn Total Loan Portfolio Consumer Portfolio 1,065 428 435 449 1,100 1,007 1,023 450 402 400 371 1,000 897 350 322 323 YoY 900 947 304 756 744 783 803 803 YoY 286 +12% 300 267 800 +13% 237 700 604 250 201 CAGR: 557

  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% 0.99% 0.98% 0.96% 0.97% 0.95% 0.89% 1.00% 0.89% 0.98% 0.50% 2012 2013 2014 2015 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24

  21. Slide 21: Sound Asset Quality

    Sound Asset Quality Coverage Ratio 250% 227% 217% 202% 186% 187% 188% 184% 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 2Q23 3Q23 4Q23 1Q24 2Q24 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% 98% 96% 95% 95% 90% 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 2Q 2016 2017 2018 2019 2020 2021 2022 2023 2024 Liquidity Coverage Ratio - LCR 230% 210% 178% 190% 170% 166% 170% 150% 130% 110% 90% 70% 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3

  23. Slide 23: Strong Capital Position

     Strong Capital Position Capital Adequacy Ratio Basel III 24.7% 22.8% 21.7% 22.2% 20.2% 20.7% 20.7% 21.3% 20.2% TLAC to 2025 18.5% 0.2% Tier 2 17.90% 17.3% 17.2% 15.3% 15.3% 5.9% 14.6% Total 14.65% Tier 1 +3.250% 20.0% TLAC 4Q23 11.40% 9.40% 15.3% 15.1% 14.7% 15.4% 15.7% 14.7% 15.5% CET1 7.90% 13.9

  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 Jul 19, 2024) Agency Rating Outlook Date Net Income 2024 $57,632 Target Price $192.5 Standard & Poor’s BBB Stable Aug-23 Maximum $245.0 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 C o ns o lida t e d S t a t e m e nt o f C o m pre he ns iv e Inc o m e a nd C o ns o lida t e d S t a t e m e nt o f C ha nge F ina nc ia l P o s it io n H ighlight s - B a no rt e 2Q23 1Q 2 4 2Q24 1H 2 3 1H 2 4 (M illio n P eso s) 1Q 2 4 2Q23 Net Interest Inco me (1) 24,595 26,08

  27. Slide 27: Quarterly Summary

    Quarterly Summary F ina nc ia l R a t io s - B a no rt e 2Q23 1Q 2 4 2Q24 P ro f it a bilit y: NIM (1) 6.4% 6.3% 6 .4 % NIM after P ro visio ns (2) 5.4% 5.1% 5 .2 % ROE (3) 27.1% 26.2% 3 1.5 % ROA (4) 2.5% 2.4% 2 .6 % O pe ra t io n: Infrastructure 2T23 1T24 2T24 Efficiency Ratio (Co st to Inco me)

  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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