mujer banorte

XNOR
GBOOY
Grupo Financiero Banorte
“Bank of the Year
“Best Commercial
Mexico 2011, 2009,
Bank
2008, 2006 & 2005” in Mexico 2012, 2011
& 2010”
1
"Best Bank in
Mexico 2011
& 2008”
“Top Ranked Latam
Management
& IR Team 2012, 2011 &
2010”
“Best Bank in
Mexico 2012"
Index
1. GFNorte‟s Overview
2. Market Presence
3. GFNORTEO & CSR
4. Final Comments & Quarterly Events
2
2
GFNORTE – a leading and profitable banking 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 more than 27 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
over US 17 billion, float of almost 90% and more than 3,500 investors,
including large global institutional funds.
Investment grade rating by S&P, Fitch, Moody's and HR Ratings.
From Regional bank to National Bank
Dec „96
Dec „01
BTE
Branches
States (Mex.)
156
Dec„11
BTE + BCN +
BPS + BCR
14°
1,182
4°
BTE + IXE
1,285
3°
Dec'12
Jun'13
BTE + IXE
BTE + IXE
1,316
3°
3°
1,282
7
32
32
32
32
0.6
3.0
9.8
11.3
12.0
Branch
Employees (1)
4,840
15,099
18,742
20,964
20,735
Deposits (2)
3.0% 14° 11.7%
Individual Clients
& SMEs (MM)
Loan Portfolio (2)
3°
3°
BANORTE
BANCENTRO
BANPAÍS
BANCRECER
3.3% 10°
8.6%
4°
4°
15.0%
15.8%
3°
3°
16.5%
3° 16.8%
3°
3°
3°
16.8%
3° 16.8%
3°
3°
3°
(1) During 2012 it was concluded the transfer of personnel from Ixe subsidiaries and Casa Bolsa Banorte to the Banorte's payroll.
(2) Includes the G-7 Banks
4
INB
Banorte-Ixe
Well-diversified Financial Group
Grupo Financiero Banorte
Banking
Long Term Savings
Banco
Mercantil
del Norte 1 (a)
Seguros
Banorte
Generali 4 (d)
Banorte – Ixe
Tarjetas 2
Pensiones
Banorte
Generali 4 (d)
Banorte
USA 2
5
Other Finance
Companies
Arrendadora y
Factor Banorte 3 (b)
Almacenadora
Banorte 3
Sólida
Administradora
de Portafolios 3 (c)
Afore XXI
Banorte 5
Brokerage
Casa de Bolsa
Banorte Ixe 3
Operadora
de Fondos
Banorte Ixe 3
Banorte-Ixe
Securities 6
1)
97.50% GFNorte.
2)
100% Banco Mercantil del Norte.
3)
99.99% GFNorte.
4)
51% GFNorte, 49% Generali.
5)
50% Banco Mercantil del Norte, 50% IMSS.
6)
100% Casa de Bolsa Banorte Ixe.
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)
On June 11th, a binding agreement with Grupo Generali was signed in order to purchase 100% of its interest in the insurance and annuities companies.
Rapid Growth in Assets under Management
US 140 bn
Billion Pesos
1,827
1,471
245
1,296
203
60
99
50
81
650
434
42
569
712
86
39
37
521
Afore XXI Banorte
67
114
Insurance & Annuities
Mutual Funds
577
Broker Dealer
548
Banking Sector
498
72
30
28
108
137
411
413
464
499
2009
2010
2011
2012
12
129
251
2005
6
2Q13
Quarterly Summary
Million Pesos
2Q12
1Q13
2Q13
Change
QoQ
YoY
11,589
13,804
13,275
(4%)
15%
Credit Costs
1,186
2,073
3,132
51%
164%
Expenses
6,457
7,431
6,691
(10)%
4%
Net Income
2,635
3,140
3,220
3%
22%
1.13
1.35
1.38
3%
22%
Book Value per Share(1)
32.45
36.28
36.03
(1%)
11%
ROE
14.2%
15.1%
15.3%
0.2 pp
1.1 pp
ROA
1.2%
1.3%
1.4%
0.0 pp
0.1 pp
P/BV (2)
2.13
2.72
2.13
(22%)
(0%)
Revenues
EPS(1)
(1)
(2)
7
Pesos. Does not consider the new share count as a result of the equity offering.
Times. Does not consider the new share count as a result of the equity offering.
Net Interest Income and Non Interest Expense
NIM
(Post-Provision)
Billion Pesos
Net Interest
Income
2Q12
1Q13
2Q13
QoQ
8.2
8.6
9.3
8%
YoY
3.6%
3.1%
2.8%
1Q13
2Q13
13%
2Q12
Efficiency Ratio
Billion Pesos
Non Interest
Income
8
2Q12
1Q13
2Q13
QoQ
YoY
6.5
7.4
6.7
(10)%
4%
55.7%
53.8%
50.4%
2Q12
1Q13
2Q13
Net Interest Margin
NIM
(Pre-Provision)
8.1%
7.7%
7.6%
6.8%
2005
2006
2007
2008
4.3%
4.2%
4.1%
4.1%
4.2%
4.3%
2009
2010
2011
2012
2Q12
2Q13
2.9%
3.3%
3.4%
3.6%
2010
2011
NIM
(Post-Provision)
7.1%
6.8%
6.3%
4.7%
2.8%
2005
9
2006
2007
2008
2009
2.8%
2012
2Q12
2Q13
Revenue Mix
% Net Interest Income vs. Total Income
65%
65%
64%
2005
2006
2007
68%
70%
2008
2009
66%
67%
69%
2010
2011
2012
71%
70%
2Q12
2Q13
% Service Fees vs. Total Income
22%
2005
23%
2006
*Includes fees from the Afore
10
22%
2007
20%
2008
18%
2009
20%
2010
21%*
17%
2011
23%*
17%*
14%
15%
14%
2012
2Q12
2Q13
Efficiency
Cost to Income
57%
55%
56%
56%
53%
51%
2005
2006
2007
2008
2009
54%
56%
52%
2010
50%
2011
2012
2Q12
2.9%
3.0%
2012
2Q12
2Q13
Cost to Assets
6.1%
5.9%
5.4%
4.3%
2005
11
2006
2007
2008
3.0%
3.0%
3.2%
2009
2010
2011
2.8%
2Q13
Revenue Optimization
% Service Fees vs. Non Interest Expense
50%*
41%
42%
42%
41%
36%
39%*
38%
30%
2005
2006
2007
2008
2009
2010
2011
31%*
26%
28%
28%
2012
2Q12
2Q13
% Provisions vs. Net Interest Income
36%
31%
11%
11%
2005
2006
*Includes fees from the Afore
12
19%
15%
2007
34%
30%
19%
14%
2008
2009
2010
2011
2012
2Q12
2Q13
Net Income & Dividends
Net Income
10,888
(Million Pesos)
8,517
6,813
6,185
6,810
7,014
US 247 mn
6,705
5,854
2,635
2005
2006
2007
2008
2009
2010
2011
2012
Dividends
(Million Pesos)
757
2005
* To be decreed
13
908
942
2006
2007
1,052
1,105
2008
2009
1,703
2Q12
2,178*
1,210
2010
2011
2012
3,220
2Q13
Profitability
Return on Assets
3.1%
2.8%
2.6%
1.9%
2005
2006
2007
2008
1.0%
1.2%
1.1%
2009
2010
2011
24.9%
22.6%
19.7%
14.9%
2006
* Return on Tangible Equity
14
1.2%
1.4%
2012
2Q12
2Q13
18.7%
18.6%
14.3%
14.2%
2012
2Q12
Return on Equity
30.8%
2005
1.3%
2007
2008
2009
15.5%
2010
19.6%*
14.1%
2011
15.3%
2Q13
Funding and Loan Portfolio Structure
2007
Funding: $226 Billion pesos
Funding: $ 461 Billion pesos
Interbank Loans
Interbank loans
8%
10%
Money Markets
US 35 bn
2Q13
Demand
13%
Money Markets
Demand
17%
47%
49%
28%
28%
Time
Time
Loan Portfolio: $194 Billion pesos
Loan Portfolio: $421 Billion Pesos
Government
Consumer
13%
9%
Consumer
Commercial
14%
Mortgage
39%
19%
26%
Commercial
19%
20%
Corporate
Corporate
19%
Mortgage
15
US 32 bn
22%
Government
Deposits
Billion Pesos
2Q12
2Q13
Change
YoY
15%
191
218
14%
124
16%
120
127
5%
125
336
15%
312
344
10%
Demand
66%
63%
61%
63%
Time
34%
37%
39%
37%
100%
100%
100%
100%
Deposits
2005
2012
Demand
82
212
Time
43
Core Deposits
CAGR
2005-12
Mix
16
Performing Loan Portfolio
US 32 bn
Billion Pesos
412
401
350
264
239
238
2008
2009
192
145
122
2005
2007
2010
2011
2012
2Q13
Change
QoQ
YoY
CAGR
2005-12
2Q12
1Q13
2Q13
118
16%
109
122
129
5%
19%
43
131
17%
103
106
109
2%
5%
Corporate
22
64
16%
83
86
84
(3%)
0%
Government
16
88
27%
83
90
91
1%
9%
122
401
19%
378
405
412
2%
9%
2005
2012
Consumer
41
Commercial
Total
17
2006
Performing Consumer Loan Portfolio
US 9.9 bn
129
Billion Pesos
118
99
84
75
75
2008
2009
63
49
41
2005
2006
2007
2011
2Q13
2012
Change
QoQ
YoY
CAGR
2005-12
2Q12
1Q13
2Q13
72
17%
68
74
77
4%
14%
6
10
7%
10
11
11
3%
9%
Credit Card *
7
18
15%
15
18
19
5%
23%
Payroll
4
18
26%
16
20
22
11%
41%
41
118
16%
109
122
129
5%
19%
2005
2012
24
Car
Mortgage
Consumer
* Includes the credit card SOFOM Ixe Tarjeta‟s portfolio since 1Q12
18
2010
Funding and Liquidity
Total Loans / Total Deposits
(%)
Liquidity
(%)
128%
135%
137%
1Q13
2Q13
121%
19
95%
95%
97%
97%
2Q12
4Q12
1Q13
2Q13
2Q12
4Q12
Past Due Loan & Coverage Ratios
Past Due Loan Ratio
(%)
2.5%
2.5%
2.0%
1.6%
2005
1.4%
1.5%
2006
2007
2008
2009
2010
1.9%
2.1%
2011
2012
2.2%
1.8%
2Q12
2Q13
155%
158%
2Q12
2Q13
Coverage Ratio
172%
166%
143%
131%
2005
20
2006
2007
135%
2008
122%
124%
2009
2010
2011
138%
2012
Past Due Loan Ratios
21
2Q12
3Q12
4Q12
1Q13
2Q13
Credit Cards
6.8%
5.3%
5.0%
5.7%
6.0%
Payroll
1.8%
1.9%
2.2%
2.2%
2.4%
Car Loans
1.5%
1.4%
1.3%
1.1%
1.4%
Mortgage
1.1%
1.2%
1.1%
1.1%
1.2%
Commercial
3.2%
3.7%
4.3%
4.3%
3.5%
Corporate
1.5%
1.5%
1.6%
1.6%
2.6%
Government
0.0%
0.1%
0.1%
0.0%
0.1%
GFNorte‟s NPL Ratio
1.8%
1.9%
2.1%
2.1%
2.2%
Capitalization
Banorte
(%)
17.4%
Basel III
16.8%
16.1%
16.1%
15.0%
14.7%
13.8%
14.8%
Tier 2:
2.5%
12.9%
13.3%
12.2%
12.0%
12.1%
11.8%
10.8%
10.2%
9.4%
Core
Tier 1:
11.0%
2005
2006
2007
2008
2009
2010
2011
2012
2Q13
RWA +22%
+23%
+34%
+24%
-2%
+10%
+20%
+1%
+19%
*RWA= Risk Weighted Assets
22
Total
Tier 1:
12.3%
Subsidiaries
1H13
Million Pesos
Company
Change vs.
1H12
ROE
Banking Sector
5,188
24%
16.3%
Banco Mercantil del Norte
Ixe Banco
Banorte –Ixe Tarjetas
Broker Dealer
4,472
126
590
385
21%
(68%)
581%
40%
28.9%
531
285
39
110%
5%
25%
12.7%
35.2%
12.6%
204
26
(298)
(27%)
57%
14.8%
19.2%
Long Term Savings
Retirement Savings
Insurance
Annuities
Other Finance Companies
Leasing and Factoring
Warehousing
Other *
23
Net Income
Inter National Bank
Highlights
(Figures Million Dollars,
US GAAP)
Income Statement
Net Interest Income
Non Interest Income
Total Income
Non Interest Expense
Loan Loss Reserves
Operating Income
Net Income
Balance Sheet
Investment in Securities
Performing Loans
Past Due Loans
Demand Deposits
Time Deposits
Total Deposits
Equity
Ratios
NIM
Efficiency
ROE
ROA
PDL Ratio
Coverage Ratio
Classified Assets to Capital
24
1H12
Change vs
1H13
1H12
27
12
38
25
5
8
6
23
12
35
25
(1)
10
7
(13%)
1%
(9%)
(1%)
(112%)
23%
24%
804
712
10
803
864
760
714
9
886
710
(5%)
0%
(10%)
10%
(18%)
1,667
1,596
(4%)
419
413
(2%)
3.2%
66.0%
2.7%
0.5%
1.3%
2.7%
71.9%
3.3%
0.7%
1.2%
(0.5 pp)
6.0 pp
0.6 pp
0.1 pp
(0.1 pp)
144.0%
29.7%
159.0%
20.7%
15.1 pp
(9 pp)
Distribution Network
ATM‟s
Branches
POS‟s
125,696
23%
22,853 Ixe
102,204
6,637
6,657
195
102,843
Ixe
6,462
1,302 (2%)
1,282
167
Ixe
1,115
2Q12
25
2Q13
2Q12
2Q13
2Q12
2Q13
2. Market Presence
26
Market Share
May 2013
DEPOSITS
LOANS
Other
15%
Other
14%
Bancomer
23%
Scotia
5%
Inbursa
4%
Scotia
5%
Inbursa
6%
HSBC
9%
Banamex
17%
HSBC
7%
3°
3°
3°
Santander
14%
Source : CNBV.
27
Bancomer
24%
Banorte-Ixe
14%
3°
3°
Santander
13%
Banorte - Ixe
14%
Banamex
16%
Market Share by Segment
Consumer
C. Cards
Mortgage
Commercial
Government
May-12 May-13
May-12 May-13 May-12 May-13
Bancomer
26.0%
23.4%
35.4%
34.2%
34.9%
32.4%
19.0%
18.5%
26.8%
22.1%
Banamex
21.4%
20.5%
30.6%
31.4%
15.1%
15.6%
14.2%
14.3%
11.6%
10.4%
Banorte- Ixe
9.1% 10.1%
6.4%
6.8%
15.7%
16.4%
14.0%
13.4%
20.8%
23.4%
Santander
9.0%
8.2%
13.2%
13.6%
15.3%
15.7%
14.4%
14.2%
9.4%
9.5%
HSBC
5.8%
6.1%
6.7%
6.1%
4.5%
4.4%
8.9%
8.2%
8.0%
6.1%
Scotia
4.7%
5.9%
1.6%
1.6%
10.8%
10.8%
3.6%
4.3%
1.5%
1.1%
Inbursa
2.4%
1.7%
0.0%
0.0%
0.3%
0.3%
12.0%
11.2%
3.3%
4.5%
21.4%
24.3%
6.1%
6.3%
3.5%
4.4%
14.0%
15.8%
Other
Market Position
Source: CNBV.
28
3°
4°
2°
May-12 May-13 May-12 May-13
4°
18.5%
22.9%
1°
Afore Market Share
WORKERS (MILLION)
Accounts
May-12 May-13
BILLION PESOS
Market Share
Assets
Market Share
May-12 May-13
May-12 May-13
May-12 May-13
XXI Banorte*
7.23
11.62
16.9%
26.7% 1°
218
543
12.9%
27.2% 1°
Bancomer
4.52
-
10.6%
-
256
-
15.2%
-
Banamex
7.92
7.79
18.5%
17.9%
291
343
17.3%
17.2%
Sura
6.22
6.12
14.6%
14.1%
229
273
13.6%
13.7%
Principal
3.95
3.86
9.3%
8.9%
112
134
6.6%
6.7%
Coppel
3.46
4.40
8.1%
10.1%
53
72
3.2%
3.6%
Profuturo GNP
3.10
3.02
7.3%
6.9%
196
235
11.6%
11.8%
Invercap
2.84
3.03
6.7%
6.9%
81
115
4.8%
5.8%
Other
3.46
3.74
8.0%
8.5%
251
280
14.8%
14.0%
Source : CONSAR. *data as of 2012 includes only to Afore XXI Banorte, Afore Bancomer is reported
separately in this period.
29
3. GFNORTEO & CSR
30
About GFNORTEO
Highlights
GFNORTEO (BMV)
Symbols:
GBOOY (OTCQX)
XNOR (Latibex)
IPC (BMV)
Sustainable IPC (BMV)
Main Indices:
MSCI Mexico
FTSE Latibex All Shares
Total Shares Outstanding:
FTSE Latibex TOP
2,773.7 million
Float:
Aprox. 90%
Total ADRs
(1)
Outstanding:
Investors:
(1) Level
31
1
4.5 million
More than 3,500
Analysts‟ Estimates 2013 (as of end 07/2013)
Broker
BTG Pactual
BBVA
Nomura
Itau
BX+
Citi
Morgan Stanley
UBS
Vector
Scotiabank
GBM
BOFA - Merill Lynch
Credit Suisse
Santander
Goldman Sachs
JP Morgan
Nau
Invex
Interacciones
HSBC
Actinver
Deutsche Bank
AVERAGE
32
Analyst
Marcelo Henriques
Ernesto Gabilondo
Daragh Quinn
Regina Longo
Andres Audiffred
Daniel Abut
Jorge Kuri
Philip Finch
Rafael Escobar
Claudia Benavente
Lilian Ochoa
José Barria
Marcelo Tellez
Boris Molina
Jason Mollin
Saul Martínez
Iñigo Vega
Martín González
Enrique Mendoza
Victor Galeano
Martin Lara
Mario Pierry
Net Income 2013e
(Million Pesos)
13,916
14,117
17,991
13,504
13,180
13,890
13,818
13,447
14,253
13,613
13,587
13,822
12,592
13,167
13,323
13,476
13,594
12,639
12,753
15,148
12,845
14,009
13,758
Recommendation
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Hold
Buy
Buy
Hold
Hold
Hold
Buy
Hold
Hold
Hold
Hold
Price
Target
120.0
119.1
115.0
105.7
105.5
105.0
104.0
103.5
103.9
100.0
97.0
94.0
90.0
90.0
87.2
87.0
86.0
85.5
83.6
83.0
81.0
75.0
96.4
Market Capitalization
US 17.1 bn
Market Value in million pesos
33%
76%
229,565
223,257
194,135
160,868
178,478
169,266
167,987
123,995
101,192
2Q10
33
2Q11
2Q12
3Q12
4Q12
1Q13
2Q13
16-jul
Current*
Investment Grade by all Major Rating Agencies
Agency
34
Rating
Outlook
Date
Standard & Poor‟s
BBB-
Positive
Jun-13
Fitch
BBB
Stable
Apr-13
HR Ratings
AAA
Stable
May-13
Moody‟s
Baa1
Negative
Jun-13
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.
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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.
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4. Final Comments
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Current Challenges
Loans: Achieve loan growth of at least 15% with a higher cross selling ratio in
credit cards, payroll loans and SME's, among others.
Deposits: Increase the level of retail deposits in order to maintain an attractive
cost of funding.
Asset Quality: Proactively manage troubled exposures and continue with
strict underwriting standards.
Capital:
Strengthen
capitalization
levels
through
adequate
capital
management strategies.
IBM: Advance in the execution of the first phase of the alliance.
Afore and Insurance: Achieve the expected synergies with Afore Bancomer
and strengthen our presence in insurance and annuities.
Corporate Governance: Continue adopting the best local and international
practices, recognizing that Banorte is one of Mexico's most public companies.
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Quarterly Events
Grupo Financiero Banorte carries out an international follow-on offering
On July 16th, GFNORTE informed that it had priced an international follow-on offering of common
shares. The amount of subscribed common shares, subject to the offering was 389,018,940 at a
price per share of Ps. 71.50, amounting to Ps. 27,814,854,210.00, approximately 2.183 billion U.S.
dollars, without taking into account the exercise of the over-allotment options.
On July 19th, it was announced that the Mexican underwriters and international initial purchasers
indicated their intention to exercise in full the over-allotment options granted to them by
GFNORTE for the aggregate purchase of an additional 58,352,841 common shares.
All of the common shares subject to offering were settled on July 22, 2013, the proceeds from the
offering of 447,371,781 common shares equivalent to Ps. 31.99 billion or approximately 2.5 billion
U.S. dollars, were fully delivered to GFNORTE. The net proceeds obtained from the public offering
will be used to (i) repay a syndicated loan obtained in February 2013, (ii) purchase from Grupo
Generali the capital stock it owns in GFNorte‟s insurance and annuities companies, (iii) purchase
the capital stock of Banco Mercantil del Norte (“Banorte”) owned by the IFC, (iv) strengthen the
regulatory capital of Banorte and (v) for general corporate purposes.
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Quarterly Events
A 3.4 times over subscription was achieved, representing a demand of more than 8.5 billion U.S.
dollars. The allocation was 63% among international investors and 37% among local investors. In
this offering 10,126 Mexican retail investors, 22 Mexican institutional funds (including 4 of the most
important Afores) and 160 global institutional funds participated. This primary follow-on offering is
the largest in the Mexico's history, the greatest from a locally controlled Mexican financial institution,
the second most important public offering in the country's history and the ninth most important
carried out by a Latin American financial institution. Furthermore, it is the most important executed
by a Mexican bank, measured in terms of the amount placed among local investors.
Changes to the GFNORTE's Corporate Structure
During the quarter, the mergers of Ixe Banco and Fincasa into Banorte were authorized, with Banorte
remaining as the surviving entity. As part of this corporate restructuring process Banorte‟s
shareholders held an Extraordinary General Shareholders‟ Meeting, in which it was approved to
divest Banorte‟s interest in Sólida through a spin-off and subsequent merger with and into Ixe
Soluciones in order to consolidate our recovery banking operations.
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Quarterly Events
Afterwards, Ixe Soluciones was named Sólida. This spin-off and merger took effect on May 24, 2013.
Similarly, on May 7, 2013, as part of our continuing corporate integration of the Ixe subsidiaries, the
merger of Ixe Automotriz with and into Arrendadora y Factor Banorte became effective.
Amendment to the rating methodology of the commercial portfolio.
On June 24, 2013, the Commission published a resolution amending the provisions regarding the
methodology for rating commercial loans. This resolution modifies the current model of reserves, in
order to establish a methodology under which the portfolio is rated and reserved based on expected
losses for the next 12 months considering the probability of default, loss severity and exposure to
default of each client. GFNORTE decided to apply the formerly mentioned methodology with figures as
of June 30, 2013. The initial impact from adopting this new methodology was Ps 3.9 billion charged
against retained earnings.
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Quarterly Events
Signing of a binding agreement between Grupo Financiero Banorte and Assicurazioni Generali.
On June 11th, GFNORTE and Assicurazioni Generali S.p.A, through its affiliates or subsidiaries
("Generali Group") signed a binding agreement under which GFNORTE, or any of its subsidiaries
and/or affiliates, will acquire 100% of the equity representative common shares of Seguros Banorte
Generali, and Pensiones Banorte Generali, held by Generali Group due to the strategic decision of
GFNORTE to operate and fully control these businesses since the minority stakes limited their full
growth potential. Generali Group currently holds 49% of Seguros Banorte Generali's and Pensiones
Banorte Generali's shares.
Both GFNORTE and Generali Group obtained the respective corporate authorizations in order to sign
the binding agreement, which is subject to obtaining the corresponding government approvals, no
later than 180 days from the date of signing. The amount that GFNORTE will pay for Generali Group's
minority equity interest in Seguros Banorte Generali amounts to US 637 million, while the payment of
the Pensiones Banorte Generali minority equity interest amounts to US 220.5 million. As a result, the
total payment amounts to US 857.5 million, including the payment for excess capital recorded by both
companies at the end of April, equivalent to US 48.4 million and US 31.1 million, respectively.
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Quarterly Events
Credit Ratings
On June 26th, S&P affirmed Banorte‟s BBB-/A3 long and short-term international-scale credit ratings,
respectively, as well as the mxAA+/mxA-1+ long and short-term national-scale credit ratings,
respectively, on the bank and on Casa de Bolsa Banorte Ixe. Furthermore, the rating agency affirmed the
BBB- rating on Banorte´s senior unsecured debt. The outlook of all the ratings is positive.
On June 17th, Moody‟s de México affirmed all of Banorte‟s ratings and maintained a negative outlook.
Moody's also affirmed the Baa3 long-term subordinated debt and Ba1 junior subordinated debt ratings.
At the same time, Moody's affirmed the A3 global local currency issuer ratings of Arrendadora y Factor
Banorte. The outlook on these ratings is negative.
On April 18th, Fitch affirmed all of the Grupo Financiero Banorte's ratings (global scale, long and shortterm of foreign currency debt BBB/F2), Banorte (global scale, long and short-term of foreign currency
debt BBB/F2, and in national scale AA+(mex)/F1+(mex)) and Casa de Bolsa Banorte Ixe (national scale,
long and short term AA+(mex)/F1+(mex)).The outlook of all these ratings is stable.
On May 29th, 3013, HR Ratings ratified Banorte‟s “HR+1” short and “HR AAA” long-term credit ratings.
HR Ratings also affirmed the “HR AA+” preferred subordinated debt issuance BANORTE 12 rating. The
outlook on all of these ratings remained stable.
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Quarterly Events
Recognitions
NetMedia Research: “The 50 most innovative companies in Mexico”
Netmedia Research, a company dedicated to the analysis of IT adoption, announced in June, the
list of companies that occupied a place in the prestigious ranking of "The 50 Most Innovative
Companies" by Information Week Mexico, which were chosen from over 90 companies' projects
of the private sector. Banorte won the first place in the list with the project Banorte Pagomóvil.
The Banker: "Top 1000 World Banks"
In July, the prestigious magazine The Banker, published the 2013 Top 1000 World Banks ranking,
in which Banorte ranked 9th among the Top 10 of Latin American banks measured by size of
capital, being the best Mexican bank in this category and was placed 242th in the world ranking
(previous position # 271).
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XNOR
GBOOY
Grupo Financiero Banorte
“Bank of the Year
“Best Commercial
Mexico 2011, 2009,
Bank
2008, 2006 & 2005” in Mexico 2012, 2011
& 2010”
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"Best Bank in
Mexico 2011
& 2008”
“Top Ranked Latam
Management
& IR Team 2012, 2011 &
2010”
“Best Bank in
Mexico 2012"