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Banorte Posts Modest Q1 Profit Rise as Lower Rates Squeeze Interest Income

Consumer loan growth with low delinquencies helped steady results during a tech investment push.

Overview

  • Banorte reported net income of 15,458 million pesos for the first quarter, a 1% increase from a year earlier.
  • Total loans rose 6% to more than 1.25 trillion pesos, led by consumer lending as auto loans jumped 30%, credit cards 14%, payroll loans 12% and mortgages 6%.
  • Interest income fell 19% to 88,573 million pesos after cuts to Mexico’s benchmark rate reduced what the bank earns on loans, and planned spending on technology and branches lifted costs.
  • Loan quality stayed solid with past‑due loans at 1.4% of the portfolio, return on equity measured 23.9% and total deposits grew 5%, supporting a stable funding base.
  • Shares are up about 20% this year as Barclays reaffirmed an Overweight rating with a 240‑peso target, and Banorte’s economists project Mexico’s 2026 growth at about 1.8%.