Banorte Financial Group of Mexico reported a 7% increase in its net profit for the third quarter compared to the same period last year. The entity achieved a net profit of 14,240 million Mexican pesos, exceeding analysts' expectations.
Lower interest rates are beneficial for both Mexicans and banks, said Ramírez, CEO of Banorte. However, he warned that the economic slowdown could counteract the positive impact of interest rate cuts.
The Central Bank of Mexico decided to reduce its benchmark rate by 25 basis points on two consecutive occasions, reflecting a downward trend that could continue, given the easing inflationary pressures in the second-largest economy in Latin America.
Banorte's net interest income grew by 13% year-on-year, achieving a return on equity of 22.9%. The bank's active loan portfolio exceeded 1 trillion pesos for the fifth consecutive quarter, primarily driven by corporate loans.
Regarding the growth of the loan portfolio, Ramírez indicated that they expect continued growth, although it could slow down. Among the factors that could affect this growth are lower interest rates and the economic slowdown, variables that will be taken into account in the planning for the coming year.
