The titles of Grupo Financiero Banorte in the Mexican Stock Exchange (BMV) registered a boost this Friday morning after reporting solid quarterly results with a 30% increase in profits and 8% in its credit portfolio, in addition to the withdrawal announcement in the process of buying Banamex and the startup of its Bineo platform in the first quarter of 2023.
At mid-day, the shares were trading close to 157.8 pesos, an intraday rise of 3.7%, which represents a market capitalization gain of 16,176.2 million pesos. The price registered this morning is only 3.2 pesos from the historical maximum reached in March of this year.
“Banorte reported better revenue results, but profits in line with our estimates. The bank had a positive report due to: 1) higher consumer portfolio; 2) higher margin thanks to higher rates; 3) efficient cost control; 4) above-average profitability; and 5) good projects on the horizon. Thus, we have a favorable outlook for Gfnorte and we like its digital plans,” Carlos Gómez, an analyst at Intercam, said in a report.
In the financial report, the bank highlighted that digital customers increased 25% annually with 7.1 million people. Mobile banking customers grew 24% annually, going from 4.2 million to 5.2 million.
Analysts pointed out that Banorte’s technological efforts will culminate in a 100% digital neobank (Bineo) that will catapult results in the long term. Thus, Banorte could position itself as a technological leader, growing at a good pace.
“The result of Grupo Financiero Banorte seems positive to us, given the trend of good growth in profits and improvement in profitability. The rise in guidance is another positive element, although it could already be discounted by the market. Due to the above, we believe that the reaction to the report could go from neutral to slightly positive”, said Eduardo López, an analyst at Ve por Más.
On the other hand, the bank said on Friday that it will withdraw from the process of buying the consumer banking business of the US giant Citigroup in the country. The decision could pave the way for the also Mexican Grupo Inbursa, which remains among the last bidders to take over Citigroup’s operation in the Latin American nation, after the withdrawal of the Spanish Santander.
“Banorte does not continue in the process organized by Citigroup, Inc. in relation to the potential sale of part of Citibanamex’s operations in Mexico,” the entity said in a statement to the stock exchange.
A little later, President Andrés Manuel López Obrador said that there are at least three bidders left for Citigroup’s retail banking in the country, which in the past reported being open to doing the operation directly with a bidder or through a public offer.
With information from Reuters