By Natalia Siniawski
Mexican lender Banorte BMV:GFNORTE/O cut its 2025 net income outlook as it reported its third-quarter results on Tuesday, in which it posted a 9% profit dip partly because of the divestment of its digital bank Bineo, as well as a riskier loan book.
Banorte, which owns one of the country's largest banks and pension funds, lowered its 2025 net income guidance to 58.2-59.2 billion pesos ($3.17-$3.22 billion) from an earlier level of 59.6-62.1 billion pesos and revised its return on equity to 22%-23% from 21.5%-23%, citing the impairment of Bineo.
Banorte agreed to sell its digital bank unit Bineo to financial technology firm Klar in September, as part of a larger overhaul of its digital strategy.
The group recorded "an initial impairment loss" of 1.31 billion pesos from Bineo and de-consolidated the unit from its results. It also reported a new higher-risk Stage 3 commercial loan, prompting it to raise its provisions.
The lender also widened its loan growth forecast to 6%-11% from 8%-11%, citing government loans.
However, it edged up its net interest margin (NIM), a key profitability metric for banks, to 6.2%-6.5% from a prior forecast of 6.1%-6.4%.
"We see Banorte's results as weak," analysts at Santander said. "We continue to note downside risk to consensus estimates in 2026 based on weaker-than-expected growth in 2025."
RISKIER LOANS
Banorte's net profit of 13.01 billion pesos ($710 million) fell short of an LSEG-compiled estimate of 14.44 billion pesos, while total revenue of 40.86 billion pesos beat a forecast of 39.67 billion pesos.
Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 2% year-over-year supported by a larger loan book, higher loan origination, a consumer-focused portfolio mix, and consistent funding cost optimization.
Total provisions rose 57% in the quarter compared to a year earlier, largely due to higher reserves for the commercial loan that was classified as a higher-risk Stage 3 transaction.
Third-quarter Stage 3 loans reached 16.75 billion pesos, up from 11.35 billion pesos a year earlier, primarily in the commercial and mortgage portfolios. Banorte said this was driven by isolated client cases rather than broader trends.
Return on equity ended September at 20.1%, down from 22.9% a year earlier.
($1 = 18.3694 Mexican pesos)