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%.

• Subsidiaries delivered diversified growth: broker dealer & mutual funds +136% YoY, insurance +14% YoY, Afore +12% YoY.

• Digital strategy consolidated with 100% acquisition of Bineo and exclusive agreement with Rappi.

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

• Guidance maintained despite a downward revision of Mexico's GDP growth estimate to 0.5% for 2025.

Financial highlights

• Net interest income grew 4% YoY; NII from loans/deposits up 16% YoY.

• Non-interest income surged 99% YoY, driven by trading income (+104%) and premium income (+17%).

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

• Trading income surged 140% YoY, reaching MXN 2.1 billion.

• EPS for 1Q25 was Ps 5.43, up 10% YoY.

Outlook and guidance

• Full-year guidance unchanged for loan growth (8–10%) and profitability, despite revised GDP outlook of 0.5%.

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

• Anticipates further 125 bps rate cuts by Banxico, ending 2025 at 7.75%.

• Cost-income ratio targeted to remain below 35% for the year, with further expense reductions expected.

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