Banorte has 11% of the credit market – El Financiero

Grupo Financiero Banorte is the third largest bank in the Mexican financial system, with 11% of the total credit portfolio and 13% of total assets, Vector Casa de Bolsa’s analytics department indicated.

In a study conducted by Marco Antonio Montañez and Nancy Márquez, Vector analysts, they pointed out that “it is observed that in Mexico we have a concentration of 10 banks that maintain 82 percent of the market share in terms of total assets, while the 18 per cent, the remaining percentage is made up of 43 banks with small operations ”.

The bank with the largest share in this category is BBVA Bancomer, with 22% of total assets; followed by Santander, with 15 per cent; in third place is Banorte with 13 per cent, followed by Banamex with 12 per cent.

The total assets of the multiple banking sector amount to 12.394 billion pesos, therefore those of Banorte are 1.611 billion pesos; while the total portfolio of the system is 5,951 billion pesos, of which 654,000 610 million pesos correspond to Banorte.

Regarding the total credit portfolio, specialists indicated that they observed that in Mexico there is a concentration of 10 banks which hold 82 percent of the market share.

These banks are: BBVA Bancomer, with 21%; Santander, with 12 percent; Banorte, with 11 percent; Banamex, with 9 percent; HSBC, with eight percent; Scotiabank, with seven percent; Inbursa and Banco Bajío with six percent each; and Banco Azteca, with four percent.

Last August, the annual growth of Banorte’s consumer credit portfolio, which has maintained an upward trend since September last year, was close to 14 percent, while that of the corporate credit portfolio increased by about four. -five percent, surpassing only the growth reported by HSBC.

In relation to the growth of the credit portfolio of credit cards, this has approached 15 percent, while the personal credit portfolio shows a downward trend since April of this year, for which in August it recorded a decrease of 10 per cent. one hundred more or less, and real estate credit shows an annual increase of between seven and eight percent

Analysts said that, despite the capitalization ratio having been declining since April of this year, Banorte records the highest level in this variable, being just over 22.9 times, and also has the lowest default rate. with just under one percent. June.

They pointed out that in August this year the total assets of the sector reached 12.394 billion pesos, which represented a real monthly decrease of 0.72 percent, but an increase of 14.05 percent compared to August last year. year.

The total credit portfolio stood at 5,951 billion pesos, with a real decrease of 0.4 percent compared to the previous month, while the credit portfolio with stage 1 credit risk reached a balance of 5,709 billion pesos, which represented 95.9 per cent of the total portfolio, with a real decrease of 0.3 per cent compared to July 2022.

They added that in terms of portfolio quality, the Default Rate stood at 2.22%, 0.12 percentage points higher than the level observed in the previous month.

The total collection of resources was placed at 7,275 billion pesos, a decrease in real terms of 1.3 percent compared to the previous month, of this amount, 65 percent corresponded to immediate demand deposits, which decreased by 2.1 percent real monthly.

Finally, they commented that the accumulated net result of the sector in the period January-August 2022 was 152 billion pesos.