Grupo Financiero Banorte | Latin America 2Q26 Conference Call Highlights

Research evidence excerpt

Grupo Financiero Banorte | Latin America 2Q26 Conference Call Highlights

dit e = Morgan Stanley Research estimates

cards (14-18%), while mortgages should increase 6-7%. Commercial and corporate

loans are guided to grow 8-11% and 7-9%, respectively, with government lending

likely around 5%. Growth trends remain encouraging: loan balances increased 8.8%

y/y excluding FX effects in 2Q26, driven by stronger commercial activity and double-

digit consumer loan growth. Management highlighted a healthy pipeline in

commercial and corporate banking, supported by opportunities in real estate,

financial services, tourism, and potentially Plan México related projects, while

consumer lending continues to benefit from healthy demand, expanding digital

capabilities, and the bank's hyper-personalization strategy.

Asset Quality. Asset quality remains contained, with the NPL ratio at 1.5% and cost

of risk declining 29 bps q/q to 1.9%. NPLs continue to reflect the isolated

commercial exposure first identified in 3Q25, changes to the mortgage write-off

policy, and, to a lesser extent, the consolidation of TdF. Management expects only

limited incremental provisioning on the commercial case, as most reserves are

already in place; excluding this exposure, management argued that NPLs and cost of

risk would be approximately 1.1% and 1.8%, respectively. Management expects cost

or risk to remain within its 1.8-2.1% guidance range for the year.

Credit Cards. Management attributed the recent increase in credit card delinquency

primarily to portfolio seasoning following several years of rapid growth, as newer

vintages naturally carry higher early-stage delinquency rates. The company stressed

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