Grupo Financiero Banorte (GFNORTEO) Q1 2025 earnings summary

Executive summary

• Net income reached MXN 15.3 billion (Ps 15.29 billion) in Q1 2025, up 11% sequentially and 8% year-over-year, with ROE at 23.4% and ROA at 2.4%.

• The group delivered strong business dynamics and performance across subsidiaries, with diversified growth in banking, insurance, brokerage, and Afore.

• The digital strategy is consolidating, integrating learnings from ventures and focusing on cross-selling and cost efficiencies.

• Efficiency ratio improved to 34.6%, reflecting strong revenue and expense management.

• The group maintained leading market positions and received multiple industry awards.

Financial highlights

• Net income: MXN 15.3 billion, up 11% sequentially and 8% year-over-year; EPS for 1Q25 was Ps 5.43, up 10% YoY.

• Net interest income grew 4% YoY; non-interest income surged 99% YoY, driven by trading and insurance.

• Core deposits up 13% YoY; total deposits reached Ps 1.18 trillion.

• Cost-to-income (efficiency) ratio improved to 34.6%.

• Capital Adequacy Ratio (CAR) at 22.87%, CET1 at 14.40%, and LCR at 183%.

Outlook and guidance

• Full-year guidance maintained despite lower GDP growth expectations; loan growth guidance remains at 8–10%.

• Management prioritizes capital and liquidity strength, maintaining ratios well above regulatory minimums.

• Anticipates further 125 bps cut in reference rate to 7.75% by year-end.

• Focus remains on selective credit origination, proactive risk management, and revenue diversification.

• No change in guidance unless operating dynamics shift significantly.