Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q1 2020 Earnings Presentation
16 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Apr 24, 2020
Slide 1: Conference Call: 1Q20 Results
GFNORTE Conference Call: 1Q20 Results April 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: Relief Program for Consumer Credit and SMEs
Relief Program for Consumer Credit and SMEs Capital & interest payments deferred for 4 months. Period: 4 months Loan maturity extended 4 months to incorporate deferred amortizations % Accrued unpaid interest will be collected as of April 15th, 2020 Applications month five. Auto 23% Estimated partici
Slide 4: Profitability Remains Resilient
Profitability Remains Resilient EPS 3.44 1Q20 q/q y/y 3.03 3.07 3.12 3.16 Net Income 9,118 1% -8% 3.03 Recurring 4% EPS 3.16 1% -8% Recurring 4% ROE 18.8% (26)bp (362)bp Recurring (100)Bp 1Q 2Q 3Q 4Q 1Q ROA 2.21% (7)bp (27)bp *Recurring 2019 2020 Recurring 3bp ROA ROA ROE 2.47% 2.47% 2.24% 2.28% 2.2
Slide 5: Revenues
Revenues Core Banking Fees y/y 3,669 3,315 +7% 3,099 Million pesos 1Q20 q/q y/y 3,000 NII Loans 16,436 0% 8% 2,000 NII Repos 2,003 (6%) (5%) 1,000 NII Val. Adjust -73 (206%) (311%) NII Insurance & Annuities 3,601 127% 4% - 1Q 2Q 3Q 4Q 1Q NII 21,968 9% 6% 2019 2020 Net Service Fees 3,455 (18%) 16% Fu
Slide 6: Loan Growth with Quality
Loan Growth with Quality NPL Ratio 2.5% Good quarter for Commercial & Corporates portfolios. 2.0% Consumer books showed growth momentum. 1.7% 1.7% 1.7% Remarkable credit quality. 1.5% 1Q20 q/q y/y 1.0% 1Q 2Q 3Q 4Q 1Q Commercial 182,277 6% 5% 2019 2020 Corporate 145,229 13% 8% Government 161,549 (7%)
Slide 7: Lower Funding Cost
Lower Funding Cost Cost of Funds / TIIE Funding cost down to 45% of reference rate. Deposits 7% q/q. 50% 48% 46% GFNorte’s Total Deposits 45% 45% 800 773 775 750 735 724 725 700 40% 1Q 2Q 3Q 4Q 1Q 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2019 2020 Merger 7
Slide 8: Bank Regulatory Capital Ratio
Bank Regulatory Capital Ratio Capital Adequacy Ratio (CAR) Basel III 20.0% 20.3% 19.0% 18.1% 18.6% 17.8% 1.1% Tier 2 17.2% 1.1% 16.6% Total 4.7% 5.7% Tier 1 17.9% 11.40% 9.40% 7.90% 13.8% 13.1% 13.3% 12.7% 12.1% 12.7% 12.7% 12.2% CET1 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Minimum Merger Regulatory
Slide 9: Liquidity
Liquidity Strong liquidity, supported by growth in deposits in the quarter Liquidity Coverage Ratio Liquidity coverage ration above minimum CCL (%) regulatory requirements. 150% 140% 133% 130% 118% 120% 120% 117% 110% 100% 90% 80% 70% 60% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2019 9
Slide 10: Subsidiaries
Subsidiaries Business diversification. Net Income by Subsidiary Continuous growth on Insurance profitability and better combined ratio. Warehousing Leasing & 0.123% Holding Factoring 4% 3% Annuities 4% Insurance Bank Million pesos 1Q20 q/q y/y 21% 62% Bank 6,072 (10%) (16%) Broker 313 (17%) 2% Pensi
Slide 11: 1Q20 on Target to 2020 Guidance
1Q20 on Target to 2020 Guidance Guidance 2020 Actual 1Q20 Loan Growth (ex-Gov) 6% – 8% 6% ✓ 5.9% NIM Expansion 5 – 15bp +24bp 4Q ✓ Expense Growth 5% – 5.5% 5% ✓ Efficiency 38.0 – 39.0% 38.9% ✓ Cost of Risk 1.9% – 2.2% 2.2% ✓ Tax Rate 26% – 27% 26% ✓ Net Income 37.5 – 38.8 9.1 bn 18.8% ROE 19.6% – 20
Slide 12: Selected Industry Exposures
Selected Industry Exposures Total Loans Oil Industry Pemex 3.1% Pemex Suppliers 1.9% Electricity Company CFE 2.3% CFE Suppliers 0.0% Construction & Real State Housing 1.0% Commercial 1.4% SMEs 4.5% Others 1.8% Malls 1.9% Dollar denominated 11.9% Tourism 5.3% Restaurants 0.2% Airports 0.1% 12
Slide 13: COVID-19 Measures by Banxico and CNBV
COVID-19 Measures by Banxico and CNBV Regulatory Deposit Requirements reduction of Ps 60 billion. Reduction in the repo rate between Banks and Central Bank from 2.2 to 1.1x reference rate. US Dollar swap line between Banks and Central bank for US 60 billion dollars. Support to market makers in the g
Slide 14: Banorte's Capital Ratios to Remain Above Regulatory Requirements
Banorte’s Capital Ratios to Remain Above Regulatory Requirements Perpetual Bond Buffers To Banorte’s CAR Write - Down To Interest Cancellation (either of) 19.0% 19.0% Tier2 17.9% Additional 5.7% Tier1 (AT1) 12.2% 12.2% 11.4% 9.4% CET1 12.2% 7.9% 5.1% 1Q20 CET1 CET1 Total Total Tier1 CAR 14
Slide 15: Accounting for the consumer payment deferral program
Accounting for the consumer payment deferral program ▪ Principal & Interest payments will be deferred four months. ▪ The original amortization scheduled is extended for 4 months. After grace period ends, at month five, installments are reactivated. ▪ Accrued but unpaid interest will be recognized ag
Slide 16: Conference Call: 1Q20 Results
GFNORTE Conference Call: 1Q20 Results April 24th, 2020
Grupo Financiero Banorte — Q1 2020 Earnings Presentation on 6ix