Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q2 2019 Earnings Presentation
14 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Jul 26, 2019
Slide 1: Conference Call: 2Q19 Results
GFNORTE Conference Call: 2Q19 Results July 26th, 2019
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: Resilient Quarter on Earnings and Returns
Resilient Quarter on Earnings and Returns Recurring EPS +20% 2Q19 q/q y/y 1H19 y/y 3.53 3.44 y/y Net Income 8,728 (12%) 21% 18,660 34% 2.96 3.03 3.03 2.71 2.59 Recurring 8,728 (0%) 21% 17,477 25% 2.44 2.24 2.34 EPS 3.03 (12%) 17% 6.47 29% 1.99 2.05 1.79 1.89 Recurring 3.03 (0%) 17% 6.06 20% 1.61 1.6
Slide 4: Customer Experience
Customer Experience Net Promoter Scores 1H19 Cross Sell Ratio 1H19 • Branches (1,050) 63 2.0 • Executives amiability 81 1.9 • High Value Clients 80 • World class NPS in App 76 1.8 • Internet banking, ATMs and contact center growth of 15% in recommendation level 2015 2017 1H19 NPS Preferente (High Va
Slide 5: Digital Bank, the Strategy
Digital Bank, the Strategy Minority investment in Payclip, Inc. Beyond Banorte Movil … Banorte Go (Fintech aggregator) Take advantage of the massive market opportunity to become With Banorte Go, don't leave your conversation… the leading supplier of payment solutions in Mexico. • Quick transfers,
Slide 6: Core Business on Track
Core Business on Track +13% Net Service Fees y/y 4.0 Billion Pesos 3.6 NII on Loans +2% q/q, 13% y/y. 3.5 3.3 2Q NIM of Bank recovering 10bp q/q. 3.0 3.0 Net Service Fees +22% q/q, 13% y/y 2.5 2.0 1.5 1T 2T 3T 4T 1T 2T 3T 4T 1T 2T 2017 2018 2019 Million pesos 2Q19 q/q y/y 1H19 y/y NIM NII Loans 15,4
Slide 7: Historical Record on Efficiency
Historical Record on Efficiency Non-Interest Expense +6% Cost control: (5%) q/q; +6% y/y. 10,004 (5%) y/y 9,525 1H19 +8% y/y. 8,984 Total Record low recurring Cost to Income ratio, 38.5% 39% 37% 43% Personnel 2Q18 1Q19 2Q19 Recurring Income Expenses Cost to Income Ratio 30,000 25,000 45% 42.9% 20,00
Slide 8: Credit Quality
Credit Quality NPL Ratio Seasonal hike in NPL ratio. 3.0% 2.5% Stable cost of risk. 2.0% 1.8% 1.9% 2.0% 1.7% Seasonal low in charge-off rate. 1.5% 1.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2017 2018 2019 Cost of Risk Charge-Off Rate 3.0% 1.00% 2017 as reported 0.75% 2.5% 2.3% 0.52% 0.53% 0.50% 0.43% 0.44%
Slide 9: Relevant Subsidiaries
Relevant Subsidiaries Net Income Seasonal behavior in Insurance 2Q19 with Million pesos 2Q19 q/q y/y 1H19 y/y premiums growth of +17% y/y. Net income Bank 6,428 (11%) 9,832 13,652 39% 1H19 +16%. Recurring 6,428 6% 9,832 12,468 27% Brokerage Sector 233 (24%) 561 538 (4%) Annuities Assets growth +34%
Slide 10: Regulatory Capital Ratios
Regulatory Capital Ratios Capital Adequacy Ratio (CAR) Basel III 20.0% CAR 17.8% 18.1% 17.2% 17.2% 16.6% 15.1% 15.3% 15.3% Tier 1 14.7% 14.6% 18.2% 11.18% 9.18% 13.8% 13.1% CET1 7.68% 11.8% 12.7% 12.4% 12.1% 11.9% 12.7% 12.1% 12.7% 11.5% 2012 2013 2014 2015 2016 2017 2Q18 3Q18 4Q18 1Q19 2Q19 Dec'18
Slide 11: Macro outlook – Slower growth but a resilient consumer
Macro outlook – Slower growth but a resilient consumer GDP at the start of a new administration Retail sales % yoy % yoy, 3 month moving average 6 5.1 6 3.9 4.5 3.7 3.6 3.3 2.3 2.3 2.8 2.9 3 1.4 2.1 2.0 3 1.1 1.4 0.8 1.9 0 0 0.0 -0.4 -3 -3 -6 -5.3 -6 2001 2004 2007 2010 2013 2016 2019 2009 2011 2013
Slide 12: Macro stability has fostered credit to increase 4%-pts in each administration
Macro stability has fostered credit to increase 4%-pts in each administration CPI inflation Public debt* % yoy % of GDP 10 44.8 8 6 8.5 4 3.5 2 36.3 0 2000 2003 2006 2009 2012 2015 2018 2001 2004 2007 2010 2013 2016 2019 Credit-to-GDP ratio % Peña-Nieto (2013-2018): ∆ 4.2% Calderón (2007-2012): ∆ 3.
Slide 13: GFNorte Guidance 2019
GFNorte Guidance 2019 Original New Guidance 2019 Guidance 2019 Loan Growth 7% – 9% 7% – 9% NIM Expansion 10 – 15bp 15 – 20bp Expense Growth 7% – 9% 7% – 9% Efficiency 37.5% – 38.5% 37.5% – 38.5% Cost of Risk 2.0% – 2.3% 2.0% – 2.3% Tax Rate 27% – 29% 26% – 28% Net Income 35.8 – 36.8 36.0 – 36.8 ROE
Slide 14: Conference Call: 2Q19 Results
GFNORTE Conference Call: 2Q19 Results July 26th, 2019
Grupo Financiero Banorte — Q2 2019 Earnings Presentation on 6ix