Banorte’s fourth-quarter results clearly show the impact of the Covid pandemic.
Net income fell 33.8% compared with 4Q2019 – largely caused by the bank’s decision to frontload Ps2.4 billion of provisions. However, Banorte’s management is confident that will draw a line under pandemic losses.
The bank’s loan portfolio actually performed better than anticipated. As of the end of the quarter, 99% of the re-profiled portfolio had returned from the grace periods, and the overdue ratio was 6%, much better than initial management expectations of 20% delinquency.
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