Grupo Financiero Banorte Sab De Cv Class O · BMV:GFNORTE/O
Grupo Financiero Banorte Sab De Cv Class O — Q3 2019 Earnings Presentation
13 slides from Grupo Financiero Banorte Sab De Cv Class O's earnings presentation, Oct 25, 2019
Slide 1: Conference Call: 3Q19 Results
GFNORTE Conference Call: 3Q19 Results October 25th, 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 & Returns
Resilient Quarter on Earnings & Returns EPS 3.53 3.44 3Q19 q/q y/y 9M19 y/y 3.03 3.07 Net Income 8,858 1% 13% 27,518 26% 2.71 2.59 2.96 3.03 Recurring 26,335 21% 2.44 2.24 2.34 EPS 3.07 1% 13% 9.54 26% 1.99 2.05 Recurring 9.13 21% ROE 19.6% 15bp (7)bp 20.5% 162bp Recurring 19.7% 88bp ROA 2.24% 4bp 1
Slide 4: Core Business Performance on Track
Core Business Performance on Track Million pesos 3Q19 q/q y/y 9M19 y/y NII Loans 15,827 2% 6% 46,482 10% NII Repos 2,045 (3%) (7%) 6,269 1% NII on Loans +2% q/q, 10% y/y. NII Val. Adjust 51 98% (235%) 111 502% NII Insurance & Annuities 2,191 16% 8% 7,528 9% NII on Insurance & Annuities +16% q/q, 9%
Slide 5: Evolution of Net Interest Margin
Evolution of Net Interest Margin Total Funding Cost NIM of Group (14bp) 6.50% q/q 6.00% 5.7% 5.7% (18bp) 5.50% 5.5% q/q 5.6% 5.00% 4.5% 4.4% 4.5% GFI 4.50% Merger 4.00% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 2019 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 NIM ex-Insur. & Annui. NIM after Prov. Cost of F
Slide 6: Efficiency Under Control
Efficiency Under Control Non-Interest Expense Annual expense growth at 9% in line 9M19 +11% 10,578 +9% with guidance. 9,461 9,525 y/y Total Annual efficiency ratio of 38.5% aligned to guidance target. Personnel 39% 37% 40% 3Q18 2Q19 3Q19 Recurring Income Expenses Cost to Income Ratio 25,000 45% 41.4
Slide 7: Credit and Loan Activity
Credit and Loan Activity Corporates refinancing resulting in high loan 800 Total Loan Portfolio (5%) q/q prepayments. 700 Consumer books remains with positive growth 600 (1%) momentum. 500 q/q 400 300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 2019 Loan Portfolio ex-Gov. Loans Total 3Q19 q/q y/y +2%
Slide 8: Credit Quality
Credit Quality NPL Ratio 3.0% Stable NPL ratio. Declining delinquencies. 2.5% Higher cost of risk in the quarter as 1.8% 1.8% 1.9% 1.9% 2.0% anticipated. 1.5% Isolated case draws write-off rate up. 1.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 2019 Cost of Risk Write-Off Rate 1.00% 2.50% 0.75% 2.2
Slide 9: Relevant Subsidiaries
Relevant Subsidiaries Participation in Net Income of GFNorte Bank Net Income +3% q/q, +21% recurring y/y. Million pesos 3Q19 q/q y/y 9M19 y/y Bank 6,613 3% 12% 20,265 29% Insurance with retained premiums 9M19 growth Recurring 19,082 21% of +8%. Net income 9M19 +14%. Broker 345 48% 3% 883 (1%) Insura
Slide 10: Bank Regulatory Capital Ratio
Bank Regulatory Capital Ratio Capital Adequacy Ratio (CAR) Basel III 20.0% 20.3% 17.8% 18.1% 1.8% 17.2% 17.2% 16.6% 15.1% 15.3% 15.3% Tier 1 14.6% 18.5% 11.18% 9.18% 7.68% 12.7% 13.1% 13.3% CET1 12.7% 12.4% 12.1% 11.9% 12.7% 12.1% 12.7% 11.5% 2013 2014 2015 2016 2017 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Mi
Slide 11: Cross-sell Ratio
Cross-sell Ratio Products per Client 2.03 2.00 2.01 1.98 1.89 1.83 1.79 2015 2016 2017 2018 1T 2T 3T 2019 11
Slide 12: GFNorte Guidance 2019 and Estimates for 2020
GFNorte Guidance 2019 and Estimates for 2020 Previous New Guidance 2019 Guidance 2019 Loan Growth (ex-Gov) 7% – 9% 4% – 5% NIM Expansion 15 – 20bp 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 26% – 28% 26% – 28% Net Inc
Slide 13: GFNORTE
GFNORTE Conference Call: 3Q19 Results October 25th, 2019
Grupo Financiero Banorte — Q3 2019 Earnings Presentation on 6ix