Mexico Diversified Banks: 2Q26 Playbook: ST positive on Gentera

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Mexico Diversified Banks: 2Q26 Playbook: ST positive on Gentera

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08 Jul 2026 20:43:42 ET │ 23 pages

Mexico Diversified Banks

2Q26 Playbook: ST positive on Gentera

CITI'S TAKE

Gustavo Schroden AC

Heading into 2Q26 earnings, we reiterate our constructive view on high- +55-11-4009-5858

quality Mexican banks, maintaining Buy ratings on Banorte and Gentera. gustavo.schroden@citi.com

We see Banorte’s valuation as attractive given its resilient ROE and ability to

distribute its structurally solid profitability provides an interesting entry Brian Flores, CFA AC

point for investors, as strength in other operations should offset near-term +55-11-4009-2842

provisioning pressures. We remain Neutral on BanBajío, where upside risks luis.brian.flores@citi.com

to growth and asset quality appear priced in, and on Regional, which we

expect to post timid earnings improvements despite solid loan growth. Arnon Shirazi, CFA

+55-11-4009-7906

Neutral on BanBajío; Upside Risks Seem Priced In — Upside risks to loan growth arnon.shirazi@citi.com

and asset quality for BanBajío appear priced in. Loan growth could near double-

digits, exceeding the ~9% guidance, while cost-of-risk may also improve. We see

this positive news as mostly reflected in the valuation, with our 2026 net income

estimate already near the top of guidance. We reiterate our Neutral rating, awaiting

confirmation of a hawkish cycle or continued asset quality strength for a potential

re-rating. Our TP is unchanged at P$57.

Reiterate Buy on Banorte; Solid and Unsurprising Quarter Expected — We expect

a solid quarter from Banorte with no major surprises. We are marginally adjusting our

2026/27 estimates up by +2% and +1% respectively, due to better short-term

trading trends.