Grupo Financiero Banorte (GFNORTEO) Q1 2026 earnings summary

Executive summary

• Net income reached Ps 15.46 billion in 1Q26, up 1% year-over-year, with solid profitability and solvency metrics despite a volatile global environment and geopolitical tensions.

• Group ROE rose 54bps to 23.9%, ROTE increased 18bps to 29.3%, and Bank ROE jumped 213bps to 30.1% compared to 1Q25.

• Net interest income grew 10% year-over-year, supported by efficient funding cost management, loan portfolio growth, and positive inflation adjustments in annuities.

• Asset quality remained stable with an NPL ratio of 1.43%, and cost of risk increased due to risk model recalibration and isolated commercial portfolio events.

• Capitalization and liquidity remained robust: CAR at 19.74%, CET1 at 12.74%, LCR at 162.63%, and NSFR at 129.70%.

Financial highlights

• Net interest income: Ps 39.48 billion, up 10% year-over-year.

• Net service fees: Ps 5.53 billion, up 15% year-over-year.

• Non-interest expense: Ps 14.86 billion, up 10% year-over-year.

• Provisions: Ps 6.92 billion, up 36% year-over-year, mainly due to risk model recalibration and portfolio integration.

• Efficiency ratio improved to 34.2% from 33.6% a year ago.

• Total loans net: Ps 1.26 trillion, up 6% year-over-year.

• Total deposits: Ps 1.24 trillion, up 6% year-over-year.

Outlook and guidance

• Funding cost optimization and a focus on consumer lending are expected to support margins as the rate-cutting cycle continues.

• The effect of the 25bps reference rate cut to 6.75% will be reflected from 2Q26 onwards.

• Ongoing digital transformation and hyper-personalization strategies are expected to drive further growth in consumer portfolios.