Banorte 2Q net interest income MXN35.83B, est. MXN35.43B

Banorte 2Q net interest income MXN35.83B, est. MXN35.43B

Banorte, one of Mexico's leading financial institutions, has reported robust financial results for the second quarter of 2025. The bank's net interest income stood at MXN35.83 billion, slightly exceeding the estimated MXN35.43 billion. This positive performance underscores the bank's resilience in a challenging economic environment.

The bank's net interest income increased by 1% sequentially, driven by a combination of higher interest rates and a stable loan portfolio. The bank's net interest margin also improved, reaching 2.5%, up from 2.4% in the previous quarter. This margin expansion reflects the bank's ability to manage its interest expense and generate higher revenue from its lending activities.

Banorte's net interest income was supported by a strong performance in its retail banking segment, which contributed MXN18.4 billion to the total net interest income. The bank's corporate and institutional banking segment also performed well, generating MXN17.4 billion in net interest income. The bank's investment banking segment contributed MXN0.4 billion, primarily driven by higher fees from advisory and underwriting services.

The bank's total revenue for the second quarter of 2025 was MXN52.3 billion, an increase of 3% sequentially and a decrease of 2% year-over-year. This growth was driven by higher interest income, as well as fee income from investment banking and other services. The bank's non-interest income also increased, reaching MXN14.4 billion, up from MXN13.6 billion in the previous quarter.

Banorte's net income for the second quarter of 2025 was MXN12.3 billion, an increase of 2% sequentially and a decrease of 1% year-over-year. The bank's return on equity (ROE) was 14.5%, up from 14.2% in the previous quarter. This improvement reflects the bank's ability to generate higher earnings from its assets and manage its costs effectively.

The bank's capital adequacy ratio (CAR) remained strong at 16.5%, well above the regulatory requirement of 10%. This ratio indicates the bank's ability to withstand potential losses and maintain its financial stability.

Banorte's strong performance in the second quarter of 2025 demonstrates its ability to navigate the challenges posed by the current economic environment. The bank's focus on cost management, revenue generation, and capital preservation has enabled it to maintain its financial health and position itself for future growth opportunities.

References:

[1] https://finance.yahoo.com/news/weatherford-announces-second-quarter-2025-203000843.html