mujer banorte

XNOR
GBOOY
Grupo Financiero Banorte
“Best Commercial
“Bank of the Year
Mexico 2013, 2011, 2009, Bank in Mexico 2013,
2012, 2011 & 2010”
2008, 2006 & 2005”
“Best Bank in
Mexico 2012"
1
"Best Bank in
Mexico 2011
& 2008”
“Top Ranked Latam
Management & IR Team
2013, 2012, 2011 & 2010”
Index
1. GFNorte’s Overview
2. Market Presence
3. GFNORTEO & CSR
4. Final Comments & Quarterly Events
2
GFNORTE – a leading and profitable financial franchise in
Mexico
1
Sound Fundamentals: Increasing profitability, solid asset quality,
high liquidity and strong capitalization ratios.
2
Adequate business mix: Strong retail, wholesale and premium
banking platforms, as well as leading insurance and pension fund
management units, serving 24 million clients.
3
4
5
3
Solid corporate governance: Independent Board Members represent
67% of total board composition and best practices in minority
shareholder right protection.
One of the most public companies in Mexico: Market capitalization of
above US 19 billion, float of almost 90% and more than 4,000 investors,
including large global institutional funds.
Investment grade ratings by S&P, Fitch, Moody's and HR Ratings,
with recent upgrades as a result of Mexico's improved fundamentals.
From Regional to National Bank
Dec ‘96
BTE
Branches
States (Mex.)
Dec ‘01
BTE + BCN +
BPS + BCR
156 14° 1,182
4°
Dec‘11
BTE + IXE
1,285
Dec'13
Jun '14
BTE + IXE
BTE + IXE
3°
3° 1,288 3°
3°
1,267 3°
7
32
32
32
32
0.6
3.0
9.8
12.9
13.8
Branch
Employees (1)
4,840
15,099
18,742
21,084
21,169
Deposits (2) (3)
3.0% 14° 11.7% 4° 15.0%
Individual Clients
& SMEs (MM)
BANCENTRO
BANPAÍS
BANCRECER
Loan Portfolio (2) (3) 3.3% 10°
8.6% 4° 15.8%
3° 16.6% 3°
3° 17.4% 3°
3°
INB
3° 16.5% 3°
3° 16.3% 3°
4°
Banorte-Ixe
(1) During 2012, there was a transfer of personnel from Ixe subsidiaries and Casa Bolsa Banorte to Banorte's payroll.
(2) Includes the 7 largest banks.
(3) As of May, 2014
4
BANORTE
Well-diversified Financial Group
Grupo Financiero Banorte
Banking
Banco
Mercantil
del Norte 1 (a)
Seguros
Banorte 3 (d)
Banorte – Ixe
Tarjetas 2
Pensiones
Banorte 3 (d)
Banorte
USA 2
5
Long Term Savings
Finance
Companies
Arrendadora y
Factor Banorte 3 (b)
Almacenadora
Banorte 3
Sólida
Administradora
de Portafolios 6 (c)
Afore XXI
Banorte 4
1)
98.21% GFNorte.
2)
100% Banco Mercantil del Norte.
3)
99.99% GFNorte.
4)
50% Banco Mercantil del Norte, 50% IMSS.
5)
100% Casa de Bolsa Banorte Ixe.
6)
97.48% GFNorte.
a)
Merged Ixe Banco and Fincasa Hipotecaria and divested in Sólida.
b)
Merged Ixe Automotriz.
c)
Ixe Soluciones merged Sólida and changed its corporate identity to Sólida Administradora de Portafolios.
d)
The acquisition of Generali's minority stake in the insurance & annuities companies concluded on October 2013.
Brokerage
Casa de Bolsa
Banorte Ixe 3
Operadora
de Fondos
Banorte Ixe 3
Banorte-Ixe
Securities 5
Rapid Growth in Assets under Management
Billion Pesos
1,993
US 154 bn
1,829
584
1,471
1,296
245
203
60
50
99
542
141
Insurance & Annuities
Mutual Funds
593
Broker Dealer
Banking Sector
80
71
112
81
712
650
434
12
42
72
28
108
39
2005
498
536
37
137
129
251
6
30
86
569
Afore XXI Banorte
411
413
464
2009
2010
2011
499
569
596
2012
2013
2Q14
P&L: Quarterly & Annual Summary
Million Pesos
Change
QoQ
YoY
1Q14
2Q14
13,271
14,122
14,669
4%
11%
28,791
6%
Credit Costs
3,132
2,380
2,851
20%
(9%)
5,231
0.5%
Expenses
6,687
6,845
6,913
1%
3%
13,758
(3%)
Net Income
3,220
3,628
3,739
3%
16%
7,367
16%
1.38
1.31
1.35
3%
(3%)
2.66
(3%)
Book Value per Share(1)
36.03
40.14
41.67
4%
16%
41.67
16%
ROE
15.3%
13.3%
13.2%
(0.1 pp)
(2.1 pp)
ROA
1.4%
1.4%
1.4%
0.0 pp
0.1 pp
1.4%
0.1 pp
P/BV (2)
2.13
2.19
2.23
2%
5%
2.23
5%
Revenues
EPS(1)
(1) Pesos. EPS calculations include the capital injection in GFNorte in 3Q13. Prior periods are therefore not comparable.
(2) Times.
7
Change
1H14
YoY
2Q13
13.2% (2.0 pp)
GFNORTE
Million Pesos
2Q13
1Q14
2Q14
Change
QoQ
1H13
1H14
YoY
Change
1H13
Income Statement
Net Interest Income
9,355
10,352
10,428
1%
11%
18,510
20,780
12%
Non Interest Income
3,916
3,770
4,241
12%
8%
8,569
8,012
(7%)
13,271
14,122
14,669
4%
11%
27,079
28,791
6%
Non Interest Expense
6,687
6,845
6,913
1%
3%
14,122
13,758
(3%)
Loan Loss Reserve
3,132
2,380
2,851
20%
(9%)
5,205
5,231
0%
Operating Income
3,452
4,897
4,906
0%
42%
7,752
9,803
26%
Net Income
3,220
3,628
3,739
3%
16%
6,360
7,367
16%
4.3%
4.5%
4.5%
(0.0 pp)
0.1 pp
4.3%
4.5%
0.2 pp
Efficiency
50.4%
48.5%
47.1%
(1.4 pp)
(3.3 pp)
52.2%
47.8%
(4.4 pp)
ROE
15.3%
13.3%
13.2%
(0.1 pp)
(2.1 pp)
15.3%
13.2%
(2.0 pp)
ROA
1.4%
1.4%
1.4%
0.0 pp
0.1 pp
1.4%
1.4%
0.1 pp
Past Due Loan
2.2%
3.0%
3.1%
0.1 pp
1.0 pp
2.2%
3.1%
1.0 pp
Liquidity
137.2%
147.5%
134.5% (13.0 pp)
(2.6 pp)
137.2%
134.5%
(2.6 pp)
Coverage
157.8%
105.8%
104.5%
(1.3 pp)
(53.3 pp)
157.8%
104.5% (53.3 pp)
1,826,546
1,869,406
1,993,055
7%
9%
Total Assets
960,232
1,042,534
1,033,781
(1%)
8%
Performing Loans
411,782
427,553
434,743
2%
6%
9,075
13,151
14,012
7%
54%
Total Loans
420,857
440,704
448,754
2%
7%
Total Credit Portfolio
410,043
430,067
437,249
2%
7%
Total Liabilities
872,274
929,310
916,544
(1%)
5%
Total Deposits
424,095
455,340
450,817
(1%)
6%
87,957
113,224
117,237
4%
33%
Total Income
Ratios
NIM
Balance Sheet
Asset Under Management
Past Due Loans
Equity
8
Net Interest Margin
NIM
7.7%
2006
7.6%
2007
(Pre-Provision)
6.8%
2008
4.4%
4.3%
4.5%
2012
2013 *
2Q13 *
2Q14 *
3.3%
3.4%
3.4%
2011
2012
2013 *
4.3%
4.2%
4.1%
4.1%
2009
2010
2011
NIM
6.8%
(Post-Provision)
6.3%
4.7%
2006
2007
2008
2.8%
2.9%
2009
2010
* The figures include the reclassification from Trading to Net interest Income.
9
2.9%
2Q13 *
3.2%
2Q14 *
Revenue Mix
% Net Interest Income vs. Total Income
68%
65%
64%
2006
2007
2008
72%
70%
2009
66%
67%
2010
2011
70%
71%
2013 *
2Q13*
2Q14 *
17%1)
18%1)
18%1)
18%1)
14%
14%
14%
13%
2012
2013
2Q13
2Q14
69%
2012
% Service Fees vs. Total Income
23%
2006
22%
2007
20%
2008
18%
2009
20%
2010
* The figures include the reclassification from Trading to Net interest Income
1) Includes fees from the Afore
10
17%
2011
Efficiency
Cost to Income
55%
56%
51%
53%
56%
52%
54%
52%
50%
47%
2006
2007
2008
2009
2010
2011
2012
2013
2Q13
2Q14
Cost to Assets
5.9%
2006
11
5.4%
2007
4.3%
2008
3.0%
3.0%
3.2%
2.9%
2.9%
2.8%
2.7%
2009
2010
2011
2012
2013
2Q13
2Q14
Revenue Optimization
% Service Fees vs. Non Interest Expense
42%
2006
42%
2007
41%
2008
36%
2009
38%
2010
30%
2011
35%1)
37%1)
37%1)
26%
26%
28%
29%
2012
2013
2Q13
2Q14
31%1)
% Provisions vs. Net Interest Income
31%
11%
2006
36%
15%
2007
2008
2009
2010
* The figures include the reclassification from Trading to Net interest Income
1) Includes fees from the Afore
12
33%
30%
19%
19%
2011
2012
23%
2013 *
2Q13 *
27%
2Q14 *
Net Income & Dividends
Net Income
(Million Pesos)
6,185
6,810
2006
2007
7,014
2008
5,854
2009
6,705
2010
13,508
US 288 mm
10,888
8,517
2011
2012
2013
3,220
3,739
2Q13
2Q14
Dividends
(Million Pesos)
908
942
1,052
1,105
1,210
2006
2007
2008
2009
2010
* To be decreed
13
2,702 *
1,703
2011
2,178
2012
2013
Profitability
2.8%
Return on Assets
2.6%
1.9%
1.0%
2006
24.9%
2007
22.6%
2008
2009
19.7%
2007
* Return on Tangible Equity
14
1.1%
2010
2011
1.3%
1.4%
1.4%
1.4%
2012
2013
2Q13
2Q14
18.7%*
18.7%*
19.6%*
14.3%
14.2%
15.3%
13.2%
2012
2013
2Q13
2Q14
Return on Equity
14.9%
2006
1.2%
2008
2009
15.5%
2010
14.1%
2011
16.0%*
Funding and Loan Portfolio Structure
2007
Funding: $226 Billion pesos
Interbank loans
Money Markets
US 37.4 bn
2Q14
Funding: $485 Billion pesos
Interbank Loans
Money Markets
10%
11%
Demand
13%
7%
49%
Time
28%
Demand
54%
28%
Time
US 34.6 bn
Loan Portfolio: $194 Billion pesos
Government
Consumer
9%
Consumer
Commercial
15
14%
14%
39%
Corporate
Loan Portfolio: $449 Billion Pesos
20%
Mortgage
Commercial
Corporate 17%
19%
19%
26%
Mortgage
23%
Government
Deposits
Billion Pesos
Deposits
2005
2013
Demand
82
255
Time
43
CAGR
2005-13
2Q14
15%
218
265
22%
129
15%
127
134
5%
125
384
15%
345
399
16%
Demand
65%
66%
63%
66%
Time
35%
34%
37%
34%
100%
100%
100%
100%
Core Deposits
Mix
16
Change
YoY
2Q13
Performing Loan Portfolio
US 34 bn
Billion Pesos
350
122
146
2005
2006
192
2007
239
238
2008
2009
2005 2013
17
CAGR
2005-13
401
425
435
2012
2013
2Q14
264
2010
2Q13
2011
1Q14
2Q14
Change
QoQ
YoY
Consumer
41
140
17%
129
143
147
3%
14%
Commercial
43
114
13%
109
112
113
0%
4%
Corporate
22
76
17%
84
73
74
1%
(11%)
Government
16
96
25%
91
99
100
2%
11%
Total
122
425
17%
412
427
435
2%
6%
Performing Consumer Loan Portfolio
US 11.3 bn
Billion Pesos
41
49
2005
2006
63
2007
75
75
84
2008
2009
2010
2005 2013
18
118
99
2011
2012
CAGR
2005-13
2Q13
1Q14
2Q14
140
147
2013
2Q14
Change
QoQ
YoY
Mortgage
24
82
16%
77
83
85
2%
10%
Car
6
11
8%
11
12
11
(1%)
5%
Credit Card
7
20
15%
19
20
21
3%
12%
Payroll
4
26
28%
22
28
30
6%
35%
Consumer
41
140
17%
129
143
147
3%
14%
Funding and Liquidity
Total Loans / Total Deposits
(%)
Liquidity
(%)
148%
97%
97%
137%
137%
2Q13
4Q13
135%
96%
94%
2Q13
19
4Q13
1Q14
2Q14
1Q14
2Q14
Past Due Loan & Coverage Ratios
Past Due Loan Ratio
(%)
1.4%
1.5%
2006
2007
2.0%
2008
2.5%
2.5%
2009
2010
3.1%
1.9%
2.1%
2011
2012
3.1%
2.2%
2013
2Q13
2Q14
Coverage Ratio
172%
131%
135%
143%
122%
124%
158%
138%
105%
2006
20
2007
2008
2009
2010
2011
2012
2013
105%
2Q13
2Q14
Past Due Loan Ratios
21
2T12
2Q13
3T12
3Q13
4T12
4Q13
1T13
1Q14
2Q14
Credit Cards
6.0%
6.0%
5.9%
6.2%
6.3%
Payroll
2.4%
2.3%
2.3%
2.0%
2.5%
Car Loans
1.4%
1.6%
1.6%
1.3%
1.9%
Mortgage
1.2%
1.3%
1.3%
1.3%
1.3%
Commercial
3.5%
3.9%
2.9%
3.6%
3.9%
Corporate
2.6%
7.5%
8.6%
7.3%
7.3%
Government
0.1%
0.0%
0.0%
0.0%
0.0%
GFNorte's NPL Ratio
2.2%
3.2%
3.1%
3.0%
3.1%
Asset Quality
GFNorte's Annual New NPL Formation
Million Pesos
1,206
2009
5,174
4,937
2013
2Q14
1,532
510
285
2010
2011
2012
Banorte's Net Credit Losses
1.3%
1.2%
0.5%
*Accumulated
22
2009
2010
0.4%
2011
0.7%
0.5%
2012
2013
2Q14 *
Asset Quality
Growth of NPL per Segment
Million Pesos
2011
2012
2013
2Q14
(137)
29
347
224
Payroll
77
166
228
232
Car Loans
68
(14)
52
69
Mortgage
(4)
(156)
274
231
Commercial
295
1,468
(1,330)
601
Corporate
(25)
(10)
5,661
3,632
11
49
(58)
(52)
285
1,532
5,174
4,937
Credit Cards
Government
GFNorte
23
Provisions to Average Loans & Expected Losses
GFNorte's Provisions to Average Loans
3.5%
3.1%
2.7%
1.7%
2.6%
1.6%
Equity
Results
2009
2010
2011
2012
2013
2Q14
Banorte's Expected Losses
2.4%
2009
24
2.2%
2010
1.5%
1.4%
2011
2012
2.1%
2.1%
2013
2Q14
Capitalization
Banorte
(%)
Basel III
17.4%
16.8%
13.8%
15.0%
2006
RWA +23%
12.0%
15.1%
11.8%
11.5%
15.0%
12.1%
10.8%
12.3%
Total
Tier 1:
13.4%
9.4%
2007
2008
2009
2010
2011
2012
2013
2Q14
+34%
+24%
-2%
+10%
+20%
+1%
+17%
+9%
*RWA= Risk Weighted Assets
25
14.7%
12.9%
12.2%
10.2%
16.1%
Subsidiaries
1H14
Million Pesos
Company
Net Income
Growth vs.
1H13
% Contribution
to GFNorte
Banking Sector
5,168
0%
70%
Banco Mercantil del Norte 1)
Banorte –Ixe Tarjetas
4,281
888
(6%)
50%
58%
12%
459
19%
6%
32.9%
1,598
87%
22%
18.3%
616
858
124
16%
201%*
219%*
8%
12%
2%
10.4%
40.1%
18.9%
330
51%
4%
19.6%
15
(40%)
0.2%
11.0%
Broker Dealer
Long Term Savings
Retirement Savings
Insurance
Annuities
Other Finance Companies
Leasing and Factoring 2)
Warehousing
*Growth of the Insurance and Annuities companies considering 100% of net income for 2013 was 53% and 63%,
respectively.
Includes Ixe Banco and Fincasa due to its merger in May 2013.
Includes Ixe Automotriz due to its merger in May 2013.
3) Excluding Goodwill: 33.6%.
1)
2)
26
ROE
14.2%
3)
GFNORTE Net Income contribution from subsidiaries
1H12
Not including Holding, Solida and Eliminations
27
1H14
Afore Market Share
WORKERS (MILLION)
Accounts
Jun-13 Jun-14
XXI Banorte
Market Share
Jun-13
Jun-14
Assets
Market Share
Jun-13
Jun-14
Jun-13
Jun-14
11.64
11.40
26.7%
25.0% 1°
521
584
27.2%
25.8% 1°
Banamex
7.79
7.88
17.9%
17.3%
330
385
17.2%
17.1%
Sura
6.13
6.20
14.0%
13.6%
263
329
13.7%
14.6%
Principal
3.86
3.75
8.8%
8.2%
128
147
6.7%
6.5%
Coppel
4.44
5.69
10.2%
12.5%
70
96
3.6%
4.2%
Profuturo GNP
3.02
3.27
6.9%
7.2%
224
275
11.7%
12.2%
Invercap
3.03
3.11
6.9%
6.8%
109
143
5.7%
6.3%
Other
3.75
4.36
8.6%
9.4%
274
299
14.2%
13.3%
Source: CONSAR
28
BILLION PESOS
Afore
Return*
SB1
SB2
SB3
SB4
Fee
%
Coppel
8.48
11.69 12.76
13.21
1.34
Invercap
8.41
11.26 12.04
12.67
1.32
Principal
8.06 10.59
11.08
11.28
1.24
Profuturo GNP
8.53 12.23 13.63
14.98
1.17
10.15 13.60 15.13
17.36
1.15
Banamex
9.61 12.52 13.67
15.82
1.09
XXI Banorte
8.54 10.55
11.67
12.74
1.07
Industry
8.46 10.91
11.77
12.79
1.19
Sura
Source: CONSAR
*12 month return as of Jun. 14
29
Afore
Million Pesos
1H14
YoY
1,258
14%
Equity
23,432
1%
Assets
24,659
1%
583,549
12%
10.4%
(2.3 pp)
Net Income
AUM
ROE*
*ROTE 33.6%
30
Seguros Banorte Market Share
Million Pesos
Premiums
Jun-13
Jun-14
Jun-13
Jun-14
Metlife México
24,749
25,227
15.1%
15.3%
G.N.P.
18,838
19,006
11.5%
11.6%
AXA Seguros
13,803
14,077
8.4%
8.6%
Banamex
9,593
11,812
5.9%
7.2%
BBVA Bancomer
9,194
10,982
5.6%
6.7%
15,021
10,331
9.2%
6.3%
7,653
9,748
4.7%
5.9%
Monterrey NYL
8,075
8,928
4.9%
5.4%
Qualitas
7,475
8,479
4.6%
5.2%
Mapfre Crédito
6,658
7,290
4.1%
4.4%
Other
42,618
38,464
26.0%
23.4%
TOTAL
163,677
164,343
100.0%
100.0%
Inbursa
Seguros Banorte
Source: AMIS
31
Market Share
7°
Seguros Banorte by business line
Million Pesos
Premiums
Jun-13
Source: AMIS
32
Jun-14
Market Share
Jun-13
Jun-14
Damage
2,268
4,269
6.2%
13.3%
2°
Car
1,924
2,167
5.8%
6.4%
5°
Life
2,319
2,410
3.4%
3.3%
6°
Health
1,143
902
4.6%
3.5%
7°
Seguros Banorte
Million Pesos
1H14
YoY
858
53%
Equity
4,713
42%
Assets
23,434
27%
9,748
27%
40.1%
5.0 pp
Net Income
Premiums Sold
ROE
33
Pensiones Banorte
MILLION PESOS
Premiums Written
Jun-13
Jun-14
Bancomer
Banorte
Profuturo GNP
Sura
Total Industry
4,943.7
3,710.3
2,052.2
52.3
3,800.7
3,757.5
1,810.6
683.2
46.0%
34.5%
19.1%
0.5%
37.8 %
37.4 %
18.0 %
6.8 %
10,758.5
10,052.1
100.0%
100.0 %
Annuitants
Jun-13
Jun-14
Bancomer
Banorte
Profuturo GNP
Sura
Total Industry
Source: AMIS
34
Market Share
Jun-13
Jun-14
2°
Market Share
Jun-13
Jun-14
3,284
4,132
1,436
44
4,037
3,750
2,030
542
36.9%
46.4%
16.1%
0.5%
39.0 %
36.2 %
19.6 %
5.2 %
8,896
10,359
100.0%
100.0 %
2°
Pensiones Banorte
Million Pesos
1H14
YoY
124
63%
Equity
1,373
10%
Assets
56,706
18%
3,801
(23%)
18.9%
6.4 pp
Net Income
Premiums Sold
ROE
35
Inter National Bank
Highlights
(Million Dollars,
1H13
1H14
US GAAP)
Change vs
1H13
Income Statement
Net Interest Income
23
25
9%
Non Interest Income
12
9
(24%)
Total Income
35
34
(2%)
Non Interest Expense
25
23
(8%)
Loan Loss Reserves
(1)
1
(196%)
Operating Income
10
11
4%
Net Income
7
7
4%
Investment in Securities
760
553
(27%)
Performing Loans
714
840
18%
9
8
(8%)
Demand Deposits
886
852
(4%)
Time Deposits
710
601
(15%)
Total Deposits
1,596
1,452
(9%)
413
424
3%
NIM
2.7%
3.4%
0.6 pp
Efficiency
71.9%
67.2%
(4.7 pp)
ROE
3.3%
3.5%
0.2 pp
ROA
0.7%
0.8%
0.1 pp
PDL Ratio
1.2%
1.0%
(0.3 pp)
Coverage Ratio
159.0%
189.3%
30.3 pp
Classified Assets to Capital
20.7%
10.2%
(51 pp)
Balance Sheet
Past Due Loans
Equity
Ratios
36
Distribution Network
Branches
ATM’s
POS’s
20%
6%
6,657
1,282
167
37
(1%)
195
7,045
188
125,696
Ixe
151,112
29,355
22,853
1,267
159
1,115
1,108
2Q13
2Q14
Ixe
6,462
6,857
2Q13
2Q14
102,843
2Q13
121,757
2Q14
Ixe
2. Market Presence
38
Market Share
May 2014
DEPOSITS
LOANS
Other
15%
Other
16%
Bancomer
23%
Scotia
5%
Inbursa
3%
Scotia
5%
Inbursa
6%
HSBC
9%
Banamex
16%
HSBC
7%
3°
Santander
13%
Banorte - Ixe
15%
Source : CNBV.
39
Bancomer
24%
Banamex
15%
4°
Banorte - Ixe
14%
Santander
14%
Market Share by Segment
Consumer
C. Cards
Mortgage
Commercial
Government
May-13 May-14
May-13 May-14 May-13 May-14
May-13 May-14
May-13 May-14
Bancomer
22.7%
24.5%
34.2%
33.5%
32.4% 28.9%
18.6%
19.9%
22.1%
22.6%
Banamex
19.9%
18.5%
31.4%
32.2%
15.6% 15.3%
14.4%
13.0%
10.4%
9.5%
Banorte- Ixe
9.8%
11.2%
6.8%
7.5%
16.4% 16.1%
13.5%
12.1%
23.4%
23.5%
Santander
8.0%
8.0%
13.6%
14.3%
15.7% 18.3%
14.3%
14.7%
9.5%
12.0%
HSBC
5.9%
5.1%
6.1%
6.4%
4.8%
8.3%
8.3%
6.1%
4.7%
Scotia
5.8%
5.8%
1.6%
1.7%
10.8% 11.3%
4.3%
5.2%
1.1%
0.6%
Inbursa
4.3%
4.5%
0.0%
0.0%
0.3%
0.2%
10.7%
9.8%
4.5%
5.4%
23.6%
22.4%
6.3%
4.4%
4.4%
5.2%
15.9%
17.1%
22.9%
21.7%
Other
Market Position
Source: CNBV.
40
3°
4°
4.4%
3°
4°
1°
Afore Market Share
WORKERS (MILLION)
Accounts
Jun-13 Jun-14
XXI Banorte
Market Share
Jun-13
Jun-14
Assets
Market Share
Jun-13
Jun-14
Jun-13
Jun-14
11.64
11.40
26.7%
25.0% 1°
521
584
27.2%
25.8% 1°
Banamex
7.79
7.88
17.9%
17.3%
330
385
17.2%
17.1%
Sura
6.13
6.20
14.0%
13.6%
263
329
13.7%
14.6%
Principal
3.86
3.75
8.8%
8.2%
128
147
6.7%
6.5%
Coppel
4.44
5.69
10.2%
12.5%
70
96
3.6%
4.2%
Profuturo GNP
3.02
3.27
6.9%
7.2%
224
275
11.7%
12.2%
Invercap
3.03
3.11
6.9%
6.8%
109
143
5.7%
6.3%
Other
3.75
4.36
8.6%
9.4%
274
299
14.2%
13.3%
Source: CNBV.
41
BILLION PESOS
3. GFNORTEO & CSR
42
About GFNORTEO
Highlights
GFNORTEO (BMV)
Symbols:
GBOOY (OTCQX)
XNOR (Latibex)
IPC (BMV)
Sustainable IPC (BMV)
Main Indices:
MSCI Mexico
Total Shares Outstanding:
FTSE Latibex All Shares
FTSE Latibex TOP
OTCQX30
2,773.7 million
Float:
Aprox. 90%
Total ADRs
(1)
Outstanding:
Investors:
(1) Level
43
1
5.5 million
More than 4,000
Analysts’ Estimates 2014 & 2015 (as of 08/2014)
Broker
44
Net Income
(Million Pesos)
14e
15e
BX+
16,176
Vector
BTG Pactual
Recommendation
Price
Target
-
Buy
115.0
16,076
-
Buy
110.0
15,791
20,242
Buy
110.0
Brasil Plural
17,176
20,744
Buy
108.0
Santander
16,749
19,529
Buy
107.5
BBVA
16,136
20,199
Buy
106.1
Burkernroad
16,861
-
Buy
106.0
GBM
16,910
21,130
Buy
106.0
Itau BBA
16,276
20,907
Buy
105.1
Morgan Stanley
15,769
Buy
105.0
Monex
16,416
19,191
-
Hold
105.0
Finamex
16,521
19,505
Buy
104.2
UBS
16,002
19,036
Buy
104.0
Citi
16,197
19,436
Hold
104.0
BOFA - Merill Lynch
15,449
18,448
Hold
104.0
Intercam
15,945
19,262
Buy
102.0
JP Morgan
15,969
18,434
Hold
101.0
Scotiabank
16,527
19,688
Buy
100.0
Barclays
16,025
19,038
Buy
99.1
Interacciones
15,872
17,941
Hold
99.0
Invex
16,167
-
Buy
99.0
Goldman Sachs
15,932
19,869
Hold
98.0
Credit Suisse
14,496
17,739
Sell
96.0
HSBC
16,217
18,065
Hold
95.0
Actinver
14,974
18,385
Hold
93.0
Deutsche Bank
15,935
19,122
Hold
90.0
Nau
14,819
16,158
Hold
86.0
Nomura
15,548
19,070
Hold
80.0
Average
16,033
19,180
101.4
Market Capitalization
US 19.5 bn
Market Value in million pesos
150%
253,408
226,697
160,868
243,617
257,374
252,853
2Q14
Current*
178,478
123,995
101,192
2Q10
45
2Q11
2Q12
2Q13
3Q13
4Q13
1Q14
Investment Grade by all Major Rating Agencies
Agency
46
Rating
Outlook
Date
Standard & Poor’s
BBB
Stable
Apr-14
Fitch
BBB+
Stable
Mar-14
HR Ratings
AAA
Stable
May-14
Moody’s
Baa1
Stable
May-14
Corporate Responsibility
At Banorte-Ixe, sustainability means maximizing growth and profitability while seeking to achieve
balance among the economic, social, and environmental aspects of our business.
This is achieved through a four-pillar framework:
Environmental Responsibility
Community Commitment
Equality and Governance
Value Chain
Focus on Financial Inclusion and Education, Environmental Efficiency, Social and Environmental
Innovation for SMEs and Empowering Women Consumers.
 IPC Sustentable – Member of Mexican Stock Exchange Sustainability Index.
Carbon Disclosure Project – “Top 10” Latin American Organization in Disclosure and Performance.
Great Place to Work – Best ranking among banks of similar size.
47
Promoting Social Innovation and a Greener Mexico
 Mujer Banorte: Pioneers since 2004 in serving women consumers in Mexico.
 MiFon: Serving the underbanked in Mexico through mobile phone banking.
 FOMIN, Walmart, FEMSA and Monterrey Tech: Social and Environmental Awareness
and Training for 3000 SMEs.
 Impact Investing: Developing a market in Mexico for triple-bottom line investments.
 Social and Environmental Management System (SEMS): Evaluating risks of credit
portfolio in new ways.
 Structured finance for green growth: Seeking new models of renewable energy
financing.
 Climate Change and Natural Capital: Reducing our environmental impact while
working to account for natural capital as part of our business and operations.
48
4. Final Comments
49
Challenges Ahead
 Increase profitability and growth despite the challenging economic
environment
 Consolidate our participation in afore, insurance and annuities
 Continue with loan growth
 Consolidate the multi-channel architecture and the new sales model
 Continue with tight control of expenses
 Improve asset quality and contain provisions
 Continue the retail business transformation to a customer centric model
50
Material Events
Changes to the Consolidated P&L statement related to the accounting of valuation results
for securities of the Insurance and Annuities companies.
During 2Q14, GFNorte reclassified the result for "valuation" of investments in securities held
by the Insurance and Annuities companies from the Trading Income line to the Net Interest
Income line in the consolidated P&L statement. These companies' investments, classified as
held to maturity and denominated in UDIs, change in value by reflecting the variation in the
value of the UDI (inflation indexed unit of account) for the period. This reclassification was
carried out retroactively in order to allow comparisons of prior quarters. (For further details, please
refer to the Quarterly Report)
Inclusion of GFNorte in the OTCQX30 Index.
On April 9 BNY Mellon and OTC Markets Group Inc. launched the OTCQX ADR 30 Index
("OTCQX30"), composed by the 30 most relevant ADRs in the market, in terms of market
capitalization, volume and liquidity. Some of the companies included are: AXA, Adidas,
Roche, among others. Grupo Financiero Banorte is one, of only two Mexican companies,
integrating this index. The inclusion of our Level 1 ADR in this index will provide more
visibility and liquidity to our program.
51
Material Events
Moody's upgraded various ratings for Banorte with stable outlook and affirmed ratings on
Arrendadora y Factor Banorte.
In May 2014, Moody's upgraded the following ratings, all with stable outlook:
 Banorte's long and short-term global local currency deposits ratings: to A2/Prime-1 from
A3/Prime-2.
 Banorte's Standalone Baseline Credit Assessment (BCA): to baa1 from baa2.
 Global local currency ratings of the subordinated and junior subordinated debt: to Baa2
and Baa3, from Baa3 and Ba1, respectively.
 In raising these ratings, Moody's considered:
•
Stronger franchise value.
•
Earnings diversification.
•
Expansion.
•
Significant improvements in capitalization.
Furthermore, on May 26 Arrendadora y Factor Banorte's global (A3/P-2) and national
(Aaa.mx/MX-1) scale ratings were affirmed.
52
Material Events
Organizational Changes.
Carlos Eduardo Martínez González has been appointed as Managing Director of Channels
and Segments, reporting directly to the Group's CEO. This responsibility includes managing
the retail network. Carlos has ample experience in the financial sector. He has worked at
GFNorte for over 14 years; previously, he was Managing Director of Government Banking.
Prior to joining Banorte, he held various responsibilities at Grupo Financiero Serfin. He is a
Certified Public Accountant from Instituto Tecnológico y de Estudios Superiores de
Monterrey, with postgraduate degrees in finance from Institute Serfin, in management from
IPADE and in banking from Louisiana State University.
53
Contact Information and Reports
If you have any information request or comments, please contact Banorte's
Investor Relations Department at:
Tel: (52 55) 16 70 22 56
E-mail: [email protected]
We recently published the 2Q14 report.
During 2014 we have released:
1. Annual Report to the Banking and Securities Commission (CNBV)
2. Annual Report to the Stock Exchange (Informe Anual Circular Unica de
Emisoras)
3. Audited Financial Statements for 2013
4. Annual Financial and CSR Report for 2013 under the GRI methodology
You can access our quarterly and annual reports (in Spanish and English) and
other informative materials at the following URL:
http://www.banorte.com/ri
54
XNOR
GBOOY
Grupo Financiero Banorte
“Best Commercial
“Bank of the Year
Mexico 2013, 2011, 2009, Bank in Mexico 2013,
2012, 2011 & 2010”
2008, 2006 & 2005”
“Best Bank in
Mexico 2012"
55
"Best Bank in
Mexico 2011
& 2008”
“Top Ranked Latam
Management & IR Team
2013, 2012, 2011 & 2010”