MEXICO CITY (Reuters) – Mexican lender Banorte reported first-quarter profits up 8% on Tuesday, as internal demand boosted its loan book growth.
Net profit for the group, which owns one of the country’s largest banks and pension funds, climbed to 15.29 billion pesos ($747.3 million) in the quarter, just above an LSEG-compiled estimate of 15.04 billion pesos.
Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 4% year-over-year on the larger loan book despite lower interest rates, Banorte said.
In March, Mexico’s central bank brought its benchmark rate to its lowest level since September 2022 with a 50-basis-point cut, highlighting the easing of price pressures but warning about uncertainty related to trade tensions.
Banorte’s loan book expanded by 13% year-over-year, with the corporate sector logging the highest growth.
Revenues for the firm were up 10% in the quarter to 40.58 billion pesos, also slightly above the LSEG estimate of 39.89 billion pesos.
Return on equity shot up 136 basis points year-over-year to 23.4%.
Non-financial expenses in the quarter grew 11% from the year-ago period, with Banorte doubling down on growth initiatives such as its digital bank, Bineo.
Bineo reported a net loss of 289 million pesos in the quarter.
($1 = 20.4604 pesos at end-March)
(Reporting by Kylie Madry; Editing by Sarah Morland)
