Banorte (GFNORTEO.MX): Capital optionality increasingly in focus – 2Q26 Call

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Banorte (GFNORTEO.MX): Capital optionality increasingly in focus – 2Q26 Call

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22 Jul 2026 13:01:48 ET │ 11 pages

Banorte (GFNORTEO.MX)

Capital optionality increasingly in focus – 2Q26 Call

CITI'S TAKE

Buy At Banorte’s conference call, management remained constructive on

operating trends, highlighting improving asset-quality dynamics despite Price (21 Jul 26 14:00) P$185.80

lingering pressure in consumer portfolios, continued funding-cost Target price P$220.00

tailwinds supporting NIM expansion, and healthy loan-growth pipelines Expected share price return 18.4%

across both consumer and commercial segments. While management Expected dividend yield 5.5%

acknowledged that credit-card metrics will likely remain under pressure Expected total return 23.9%

through 3Q26, trends improved sequentially during the quarter and

Market Cap P$535,746M remain within the bank’s risk appetite. Importantly, Banorte continues to

US$30,767M generate capital at a strong pace, with an expected ~60bp benefit to

CET1 from mortgage-model updates in July, reinforcing balance-sheet

flexibility and potentially opening the door to additional shareholder

distributions over time. We continue to view the combination of resilient Gustavo SchrodenAC

profitability, improving funding dynamics, and excess capital generation +55-11-4009-5858

as key pillars of the investment case. gustavo.schroden@citi.com

Brian Flores, CFA

Conference Call Highlights: +55-11-4009-2842

luis.brian.flores@citi.com

• Asset-quality normalization continues despite near-term pressure –

Management attributed the elevated cost of risk (CoR) largely to a specific Arnon Shirazi, CFA

corporate exposure and ongoing normalization within consumer portfolios, +55-11-4009-7906

arnon.shirazi@citi.com particularly credit cards.