Mexico's Banorte sees 2024 revenues rising around 10% after Q4 profit jump

MEXICO CITY (Reuters) -Mexico's Grupo Financiero Banorte reported on Wednesday a 13% increase in its net profit for the final three months of last year, driven by loan growth and lower costs, and predicted its revenue would grow around 10% in 2024.

Net profit for the financial group, which owns one of the country's largest banks and pension funds, stood at 13.04 billion pesos ($768.8 million) in the final quarter, with revenues up 10% from a year earlier to 34.89 billion pesos.

In a call, Chief Executive Officer Jose Marcos Ramirez said the group's revenue will likely grow by around 10% throughout 2024, as it keeps adding to its portfolio services.

Banorte saw its quarterly loan portfolio expand over 12% from a year earlier, it said in a presentation, attributing this largely to its method of selecting customers.

Return on equity hit 20.9% during the quarter while net interest income (NII), the difference between what banks earn on loans and dole out on deposits, grew 9% year-on-year.

Over the whole of 2023, Banorte reported a net profit up 15% at 52.42 billion pesos, surging on greater credit origination volumes and higher interest rates.

Ramirez added that bank will launch its new digital arm on Jan. 29, noting that this should help the group lure customers looking for only digital solutions.

($1= 16.9666 Mexican pesos at end-December)

(Reporting by Valentine Hilaire and Marion Giraldo; Editing by Sarah Morland and Sonali Paul)