Grupo Financiero Banorte - ADR

Strong Q2 and 1H results; guidance reaffirmed - Q2 net income: MXN 15.6bn, +1% sequentially; ROE 25.7% (+209 bps YoY) with ROA 2.3%. - 1H 2026 net income: MXN 31bn (+4% YoY) (already incorporating IPAB non-deductibility). - Management highlights: solid margins, continued loan growth, and disciplined expense management; full-year guidance reaffirmed with confidence in a more dynamic 2H.

Margins/NII: positive underlying trend, but annuities seasonality lowers reported NII - Net interest income (NII) expanding YoY for the group; however Q2 was affected by June’s very low inflation reducing margin contribution from inflation-linked securities. - Key offset: effect was neutral for net income because it was compensated by lower technical reserves (so investors should treat reported NII as having a temporary seasonal distortion). - Bank net interest margin reaches 6.9% (above guidance; guidance high-end ~6.8). Loan-to-deposit advantage cited as a key driver: NII loans-to-deposit growing ~13%.

Asset quality still within expectations; credit card delinquency up due to mix/seasonality, not assumed structural deterioration - Asset quality: NPL ratio ~1.5%; cost of risk down 29 bps sequentially, on track with annual guidance. - Investor question on credit cards: delinquency rise attributed mainly to rapid portfolio growth in prior years—new accounts have higher delinquency, raising the past-due ratio as they represent a larger share (vintages said to be stable). - Safeguards emphasized: disciplined underwriting, segmentation, AI/analytics + early warning, collections optimization, fraud prevention, governance/stress tests. - Expectation: delinquencies should continue evolving positively in Q3 and further into Q4, and there’s also mention that TDF portfolio inclusion can mechanically raise the delinquency/NPL base, plus seasonality (World Cup).