Banorte Issues 4Q20 Report, New RappiCardBy Sofía Hanna | Wed, 01/27/2021 - 10:13
Banorte, a Mexican financial and banking institution, recently released its 4Q20 report where it shows a decrease in profit of 34 percent, for a total of MX$5.9 billion (US$299 million). In 3Q20, Banorte’s profit reached MX$8.9 billion (US$ 445 million). The bank’s total revenue amounts to MX$24.9 billion (US$1.2 million), which represents a 4 percent decrease against 4Q19.
During 4Q20, the company had an increase in its overdue portfolio of 34 percent, MX$8.9 billion (US$448 million), compared to 3Q20. The company said that when the credit support program promoted by the government ended, it affected loans in the payroll, small businesses and credit cards segments. Banorte stated that now that there is a new wave of contagions, an increase in reserves is expected to face clients' insolvency. "We decided to act a little before the wave hit so we could have a clean year," Marcos Ramírez, CEO of Banorte, told Forbes.
Even though there was a decrease in the company's revenue, there are good news and new projects in collaboration with Rappi, a Colombian delivery platform. As previously reported by MBN, both companies recently released "RappiContigo," a credit program to support restaurants and prevent them from closing their doors permanently. The program considers MX$250 million (US$12.7 million) in available credits for Mexican restaurants of up to MX$1 million (US$50,800). As part of this initiative, on Jan. 25th, the release of "RappiCard" was announced.
This card does not charge an annual commission, it offers various benefits and a new user experience and transparency so that its customers can make the most of their money, according to Banorte. During the release, José Francisco Martha, Director General of Payment Methods, Digital Banking and Technology at Banorte, made it clear that one of this alliance's main objectives is to help move the Mexican economy to a digital platform.
Among the benefits for users are interest-free payments, 24-hour customer service, discounts, and an app that offers security and data protection to clients. The card also helps to reduce the use of cash, which nowadays is seen as a contagion risk, according to Forbes. The waiting list to receive a RappiCard was opened in November 2020 and more than 125,000 people are already registered.