Banorte expects higher profits and will reward its shareholders

Following its encouraging second quarter results, Banorte declared that it would call a shareholder meeting to propose an extraordinary dividend this year, while also raising its 2023 profits guidance, according to CEO Marcos Ramirez.

Banorte, which operates one of Mexico’s largest banks, on last Thursday reported a 14% increase in its quarterly profit, thanks to better results in its income from insurance premiums and brokerage business.

In a conference with analysts on Friday, Ramirez said the financial group raised its net profit guidance for this year to a range of between $51 billion pesos (MXN) and $53 billion pesos, from the previous forecast of between $50.5 billion pesos (MXN) and $52.5 billion pesos (MXN).

The executive also said that Banorte will call a shareholders’ meeting in the coming months to propose the payment of an extraordinary dividend of 15 billion pesos (about $876 million dollars) in the last quarter of the year.

The executive also said that Banorte will call a shareholders’ meeting in the coming months to propose the payment of an extraordinary dividend of US$876 million in the last quarter of the year.

Meanwhile, he also announced that Banorte now expects credit growth for 2023 to be between 10% and 12%, up from the previous range of 6% to 8%.

The lender will be looking to focus on organic growth in the coming months and will be watching closely for opportunities that may arise from the wave of «nearshoring» that is coming to Mexico, according to the head of the firm.