Mexico's Banorte quarterly profit jumps 16% on consumer loan growth

By Kylie Madry

MEXICO CITY, Jan 27 (Reuters) - Mexican financial group Banorte GFNORTEO.MX, which owns one of the country's largest banks, said on Tuesday that fourth-quarter profit climbed 16% from a year earlier on strong consumer loan growth.

Net profit came in at 15.9 billion pesos ($880 million), topping an LSEG-compiled estimate of 14.75 billion pesos. Total revenue was 42.1 billion pesos, ahead of a forecast of 41.7 billion pesos.

Net interest income, the difference between what banks earn on loans and dole out for deposits, grew 8% year-over-year, supported by consumer loan growth and lower funding costs, which helped offset the impact of interest rate cuts.

Banxico, as Mexico's central bank is known, cut its interest rate in 2025 to 7.0%, its lowest level since April 2022, from 10% at the beginning of the year.

Banorte's loan portfolio expanded 8%, the lender said.

Stage 1 and 2 loans, which are performing or have only a low risk of default, rose 6% in the quarter, driven by consumer lending in auto loans, mortgages and credit cards.

Its non-performing loan ratio came in at 1.38%.

The group said that its sale of its digital bank Bineo to financial technology firm Klar, announced in September, was ongoing. The sale was launched as part of a larger overhaul of Banorte's digital strategy.

($1 = 18.0080 Mexican pesos at end-December)