Profits at Mexico's fourth-largest banking group Grupo Financiero Banorte (GF Banorte) widened year-on-year 5.7% to 559m pesos (US$49m) in the first quarter, thanks to higher commission and financial intermediation revenues.
The ancillary credit division - factoring, leasing, and surety - saw its net income drop 19.3% to 16.7m pesos. Other group operations posted a loss of 5.4m pesos compared to a profit of 7.7m pesos in 1Q03.
The group's banking operation, Banorte, reported a 5.8% increase in profits, reaching 438m pesos. The bank's financial margin fell 13% to 2.11bn pesos due to lower interest rates. Net commission income was up 35.8% at 801m pesos, while financial intermediation revenues soared 98% to 410m pesos.
"[Profits] were 7% above my forecast driven by trading gains and lower provision charges," said Deutsche Ixe equity analyst Mario Pierry. "I was impressed by loan growth. The bank's operating fundamentals are good."
