Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Grupo Fin Banorte Ord — Q1 2025 Earnings Presentation
27 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Apr 23, 2025
Slide 1: Earnings Call 1Q25
Earnings Call 1Q25 April 23rd, 2025
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: Sound profitability
Sound profitability Net Income 8% ◼ Net Income for the quarter +11% q/q and +8% y/y y/y Million ◼ Good profitability levels: 16,000 pesos 15,288 ▪ ROE at 23.4% +185bps q/q, +136bps y/y 14,208 13,724 14,000 ▪ ROA at 2.4%, +20bps q/q, +4bps y/y 12,000 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2023 2024 2025 R
Slide 4: Subsidiaries' Net Income and ROE
Subsidiaries’ Net Income and ROE ◼ Sound business diversification: Net Income by Subsidiary ▪ Banorte Bank +7% y/y, ROE +28.0% 1Q25 3M25 ▪ Broker dealer & mutual funds +136% y/y ▪ Insurance +14% y/y Afore Holding ▪ Annuities +2% y/y 2.3% 1.8% Annuities ▪ Afore +12% y/y 4.5% Banorte Bank 72.2% Net In
Slide 5: Expanding loan book growth with stable asset quality
Expanding loan book growth with stable asset quality ◼ Emphasis on strengthening strategic relationships Performing Loans (stages 1 & 2) Billion ◼ Portfolio stages 1 & 2 growing +13.5% y/y, 1,250 pesos 1,180 1,188 1,200 Ex-Government +16.0% y/y 1,150 ◼ Annual expansion in all portfolios: 1,100 1,047
Slide 6: Expanding loan book growth with stable asset quality
Expanding loan book growth with stable asset quality ◼ Emphasis on our analytical ability to select customers Mortgage Auto ◼ Expansion in the consumer portfolio +12.2% y/y Billion 280 pesos 273 277 60 57 53 ◼ Annual growth across all consumer products: 270 256 55 260 50 ▪ Mortgage +8.1% 45 250 45 ▪
Slide 7: Healthy loan portfolio
Healthy loan portfolio NPL Ratio ◼ Consistent asset quality, NPL 0.9% 2.00% ◼ NPL ratio performing ahead of expectation 1.75% Previous criteria IFRS ◼ No negative signs in sector or geographic trends 1.50% 1.25% 0.93% 0.93% 1.00% 0.75% 0.92% 0.50% 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q 2
Slide 8: Core Banking Fees keep growing
Core Banking Fees keep growing Net Fees 2% ◼ Net fees +2% y/y; fees charged on services +10% y/y, y/y fees paid on services +18% y/y Million 5,500 pesos 5,273 ◼ Core banking fees +11% y/y, (8%) q/q due to seasonality 5,000 4,793 4,893 ◼ POS transactions +13% y/y; +36% y/y in mobile monetary 4,500 tr
Slide 9: Sustainability Updates
Sustainability Updates Released 4th annual Report on During the quarter +1,300 payroll GFNorte released its 2024 Integrated Climate Related Risks and clients attended our Financial Annual Report increasing transparency in: Opportunities (TCFD) Education Program • Renewable energy consumption Women’
Slide 10: Financial Highlights
Financial Highlights BANORTE
Slide 11: Growing Net Interest and Non-Interest Income
Growing Net Interest and Non-Interest Income ◼ NII +4% y/y NII Million 40,000 ◼ NII Loans/Deposits +16% y/y pesos 36,637 36,079 34,777 ◼ Non-Interest Income +99% y/y: 35,000 ▪ Net fees +2% y/y ▪ Premium income +17% y/y 30,000 ▪ Claims +7% y/y Annuities’ Annuities’ 25,000 ▪ Trading income +104% y/y e
Slide 12: Sound evolution of core banking ratios
Sound evolution of core banking ratios NIM of Banorte Bank ◼ NIM of Banorte Bank 1Q25 at 6.5% 7.0% 6.8% ◼ NII +9% y/y 6.5% 6.3% 6.5% ◼ Net fees +9% y/y 6.0% 5.5% 5.0% 4.5% 4.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2023 2024 2025 NII of Banorte Bank 9% Net Fees of Banorte Bank 9% y/y y/y Million pesos 28,930 2
Slide 13: Net Interest Income sensitivity evolution
Net Interest Income sensitivity evolution Bank's NII Sensitivity per 100bps change in rate - Local Currency Balance Sheet ◼ Dynamic risk management hedging Million pesos 1,222 ◼ Focus on stable low-cost liabilities 1250 1,127 11.5% 13% 979 10.6% ◼ Active ALCO 1000 11% ◼ Organic growth of fixed rate
Slide 14: Ongoing profitability at Banorte Bank
Ongoing profitability at Banorte Bank Net Income of Banorte Bank 7% ◼ Net Income of Banorte Bank +7% y/y y/y Million pesos 12,000 ◼ ROE at 28.0%, +182bps annual expansion 10,894 11,227 11,000 10,474 10,000 ◼ ROA at 2.4%, +1bps y/y 9,000 8,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2023 2024 2025 ROA of Banorte
Slide 15: Managerial NIM
Managerial NIM 7.0% ◼ NIM of the Group at 6.3% ◼ Managerial NIM or 6.5% NIM ex-Insur&Annuities 6.0%; 6.5% 6.5% 6.3% 6.3% IFRS adoption in 2022 has added volatility to 6.2% the annuities and insurance contributions to 6.0% the margin 6.0% ▪ The exclusion of annuities and insurance 6.0% provide a bett
Slide 16: Cost of funds optimization
Cost of funds optimization Cost of Funds vs CETES ◼ Core deposits grew +6% q/q, +13% y/y Reference Rate ◼ Non-interest-bearing demand deposits +5% y/y; 55% seasonal decline ◼ Interest-bearing demand deposits +24% y/y ◼ Time deposits +13% y/y 50% 48.7% 45% Change 1Q25 (Million Pesos) q/q y/y Non-Inte
Slide 17: Resilient asset quality
Resilient asset quality ◼ Credit provisions +5% q/q, +12% y/y, driven by credit Credit Provisions 5,193 5,449 volume & mix Million 4,868 5,000 Credit Provisions pesos 5,093 ◼ Cost of risk at 1.8%, ex TDF 1.7% 4,000 ex-TDF 4,536 4,791 ◼ Write-off rate at 0.43%, ex TDF 0.41% 3,000 2,000 1,000 - 1Q 2Q
Slide 18: Optimizing expenses & paving the road for the future
Optimizing expenses & paving the road for the future ◼ Revenues +6% q/q, +10% y/y Non-Interest Expenses 16,263 Million ◼ Expenses (14%) q/q, +11% y/y pesos 15,000 14,031 12,591 ◼ Cost-to-income below “35%”, at 34.58% 12,500 10,000 7,500 5,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2023 2024 2025 40,000 Recurrin
Slide 19: Bank's regulatory capital & liquidity ratios
Bank’s regulatory capital & liquidity ratios ◼ Strong CAR and CET1, well above regulatory requirements Capital Adequacy Ratio (CAR) Basel III ◼ CET1 converging towards management's optimal range ◼ Unlevered Capital 22.9% ◼ Liquidity exceeds minimum regulatory requirements, 21.3% 21.8% TLAC ▪ Average
Slide 20: 2025 Guidance
2025 Guidance 2025 Guidance Loan Growth 8% – 11% NIM 6.1% – 6.4% NIM of Bank 6.4% – 6.6% Recurring Expense Growth 6.0% - 7.0% Total Expense Growth* 9.0% – 10.5% Efficiency 36.0% – 37.5% Cost of Risk 1.8% - 2.0% Tax Rate 26% – 28% Net Income 59.6 – 62.1 bn ROE 21.5% – 23.0% ROE of the Bank 28.0% – 30
Slide 21: Appendix
Appendix GRUPO FINANCIERO 21 BANORTE
Slide 22: Selected industry exposures
Selected industry exposures Vs. Total Loans 1Q25 Oil Industry* 3.0% Electricity Companies* 2.5% Construction & Real Estate Housing 1.5% Commercial 0.9% Vs. Total Others 1.3% Loans Malls 1.2% SMEs • 79% Nafin / Bancomext guaranteed 5.0% Tourism 5.9% loans, 47% of SME book Restaurants 0.3% Dollar deno
Slide 23: Insurance business operation
Insurance business operation Technical Reserves Retained Insurance 9,658 Premiums 12,000 18,311 Million 10,000 6,708 20,000 pesos 8,000 18,000 6,000 2,353 15,069 4,000 16,000 2,000 1Q25 q/q y/y 14,000 0 Interest Income (Net) 1,002 2% 8% (2,000) 1Q 2Q 3Q 4Q 2Q 3Q 1Q 1Q 4Q Premium Income (Net) 18,311
Slide 24: Historical expenses by category
Historical expenses by category Expenses / Net Income Historical growth by category 70% 4.0x IT 3.9 Net Income 60% 3.5x Human Resources Administrative & Facilities 50% Operating 3.1 48% 3.0x 40% Human Resources IT Operating 2.5x Administrative & Facilities 30% 27% 2.2 2.0x 20% 1.7 1.6 11% 1.5x 10% 6
Slide 25: Sustainable business
Sustainable business Social and Environmental Risk Management System Responsible Investment *FN-AC-410a.1 AFORE XXI Banorte *FN-AC-410a.1 150,000 150,000 140,000 6.13% Non-sustainable During 1Q25: 130,000 135,000 120,000 120,000 analyzed portfolio 448 Analyzed loans 110,000 0.50% Sustainable 85 Loan
Slide 26: A Customer-centric bank in minutes
A Customer-centric bank in minutes 85 80 92 + 6-10 84 NPS 93 85 Hyperpersonalization New claim Mobile payroll loan Digital advanced payroll 82 offer (up to 5 products Portability Opening account in movil in one interaction) 4 min 3 min 3 min Tablet branches Time to Market Mobile account 10 min 3 min
Slide 27: Earnings Call 1Q25
Earnings Call 1Q25 April 23rd, 2025
Grupo Fin Banorte Ord — Q1 2025 Earnings Presentation on 6ix