Banorte’s Q4 Sees 13% Surge in Net Profit

Banorte announced a 13% increase in net profit for the final quarter of last year, attributing it to growth in loans and reduced costs. The financial group, which owns one of the country's largest banks and pension funds, reported a net profit of MX$13.04 billion (US$768.8 million) for the quarter, with revenues rising by 10% from the previous year to MX$34.89 billion.

For 2023, Banorte disclosed a 15% rise in net profit, reaching MX$52.42 billion, a surge attributed to increased credit origination volumes and higher interest rates. Specifically, the consumer segment experienced a 15% year-on-year growth, reaching MX$428.4 billion. This growth was fueled by a 12% increase in the mortgage segment, totaling MX$253 billion, and a 32% surge in the automotive segment, amounting to MX$42.6 billion.

The bank’s strategy emphasizes hyper-personalization to tailor offers based on customer behavior and profiles. This approach will be extended to Bineo, the upcoming digital bank of Grupo Financiero Banorte.

On Jan. 29, the launch of Bineo is scheduled. Banorte emphasized the integration of the Fintech sector and banks, describing them as interconnected entities. The executive stated that Banorte's model aims to be omnipresent, allowing customers to choose their preferred entry channel, whether it be a correspondent, ATM, or branch.

According to the financial institution, they anticipate reaching 2 to 3 million customers on Bineo within a 5-year plan. Although specific product details are unknown, the executive mentioned that the application, already available on Play Store, enables users to open accounts, obtain debit cards, request loans, explore savings alternatives, make transfers, and pay for services.