Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q1 2019 Earnings Presentation
11 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Apr 30, 2019
Slide 1: Conference Call: 1Q19 Results
GFNORTE Conference Call: 1Q19 Results April 30th, 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: Strong Quarter on Earnings and Returns
Recurring Strong Quarter on Earnings and Returns +2% EPS q/q 1Q19 q/q y/y 3.53 3.44 9,932 (2%) 47% +24% Net Income 2.71 2.96 3.03 y/y Recurring 8,748 2% 29% 2.59 2.44 2.24 2.34 EPS 3.44 (2%) 41% 1.99 2.05 Recurring 3.03 2% 24% ROE 22.4% (146)bp 420bp Recurring 19.9% (21)bp 169bp 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 4: Strong Performance in Revenues
Strong Performance in Revenues Total Revenues Recurring Billion Pesos 29.0 27.4 27.1 Quarterly NII +6%. 27.0 25.0 25.4 1Q NIM increased 32 bp due to the 25.0 23.0 22.4 insurance seasonality. 21.0 Net Service Fees +14% y/y. 19.0 17.0 15.0 13.0 11.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2017 2018 2019 Million pe
Slide 5: Improving Efficiency
Improving Efficiency Non-Interest Expense +9% Cost control: 0% q/q; +9% y/y. y/y 10,013 0% 10,004 Cost to Income for 1Q19 was 37.0%; 9,153 Total recurring 39.4%. Strong positive operating leverage. 39% 39% Personnel 39% 1Q18 4Q18 1Q19 y/y Revenues y/y Expenses Cost to Income Ratio 35% 45.6% Recurrin
Slide 6: Loan Growth
Loan Growth Consumer Market Share 15.5% 14.9% Market share improving in consumer, 15.0% even with strategic deceleration in riskier portfolios. 14.5% 14.6% Leading the growth in auto, mortgages 14.0% and credit cards. 13.5% Reduction in Government book related 13.3% to greater competition. 13.0% J F
Slide 7: Credit Quality
Credit Quality NPL Ratio Stable performance in NPL ratio. 3.0% As a result, cost of risk is improving. 2.5% 1.9% Stable charge-off rate. 2.0% 1.7% 1.7% 1.5% 1.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2017 2018 2019 Cost of Risk Charge-Off Rate 3.0% 1.00% 2017 as reported 0.75% 2.5% 2.7% 0.57% 2.3% 0.53% 0.51%
Slide 8: Relevant Subsidiaries
Relevant Subsidiaries Net Income Seasonal behavior in Insurance with Million pesos 1Q19 q/q y/y premiums growth of +2% y/y, but +20% in net income. Bank 7,223 (16%) 59% Recurring 6,040 (14%) 33% Annuities growth +30% y/y, reflects the Brokerage Sector 305 75% 30% purchase of two annuities portfolios
Slide 9: Regulatory Capital Ratios
Regulatory Capital Ratios Capital Adequacy Ratio (CAR) Basel III 17.8% 18.1% CAR 17.2% 17.6% 16.6% 17.2% 15.3% 15.3% 14.7% 15.1% 14.6% Tier 1 16.3% 11.18% 9.18% 13.8% 11.8% 11.5% 12.7% 12.4% 12.1% 11.9% 12.6% 12.7% 12.7% 12.7% CET1 7.68% 2012 2013 2014 2015 2016 2017 1Q18 2Q18 3Q18 4Q18 1Q19 Dec'18
Slide 10: GFNorte Guidance 2019
GFNorte Guidance 2019 Guidance 2019 Loan Growth 7% – 9% NIM Expansion 10 – 15bp Expense Growth 7% – 9% Efficiency 37.5% – 38.5% Cost of Risk 2.0% – 2.3% Tax Rate 27% – 29% Net Income 35.8 – 36.8 Accretion 8.5% – 10.5% ROE 19.8% – 20.3% 10
Slide 11: Conference Call: 1Q19 Results
GFNORTE Conference Call: 1Q19 Results April 30th, 2019
Grupo Financiero Banorte — Q1 2019 Earnings Presentation on 6ix