Due to the rebound in COVID-19 cases in Mexico, which has led to the closure of some economic activities, Financial group Banorte It reserved two billion pesos in preventive estimates to face a possible deterioration in its loan portfolio in the next 12 months.
“The behavior of the portfolio in the support programs has been better than expected. However, the pandemic generated by COVID-19 is in a second wave that has forced the closure of a part of the economy again, ”the firm told the Mexican Stock Exchange.
Given the announcement, Grupo Financiero Monex considered that the news could be negative, if the additional reserves are confirmed as a result of the deterioration of the portfolio, since this amount is even higher than the one estimated by the company at the end of the third quarter of 2020.
“It will be important to evaluate the results of the portfolio for the fourth quarter of 2020, the impact on the national economy due to the temporary closure of some sectors in Mexico City and the State of Mexico, the evolution of the pandemic, as well as the application and distribution of the vaccine against COVID-19 ”, added the firm.
Reserves for “the year of the virus”
According to Grupo Financiero Monex, during July, Banorte assured that it would only need reserves of 4,868 million pesos for 2020, in the midst of the COVID-19 pandemic.
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