When the coronavirus crisis hit last year, Banorte was the first bank in Mexico to defer interest payments on all main loans, credit cards and mortgages.
Now, that extra measure of support it provided customers has helped solidify the bank’s asset quality. That was part of the assessment Banorte delivered July 22, reporting a net profit of $429.5 million in the second quarter.
Amid the challenges posed by the pandemic, Banorte remained firm in assisting families and small- to medium-sized businesses over the past year to prevent liquidity issues from becoming a solvency problem.
“As the natural ally of Mexicans, at Banorte we want to lead the economic reactivation, and we are already seeing promising signs,” said Banorte Chairman Carlos Hank González.
Because of Banorte’s solid financial standing, it introduced and enhanced several programs to keep the institution strong and lead the recovery, starting with its customers. Among the results:
- More than 600,000 families benefitted from the payment deferment plan for credit card, mortgage, auto loans, payroll and personal loans.
- More than 29,000 small businesses and merchants received fee reimbursements and POS terminal rent waivers, free mobile POS terminals and working capital loans.
- More than 77,500 customers were able to start new accounts with no opening fee and no minimum balance requirements.
In a public announcement, Marcos Ramírez Miguel, Banorte general manager, said “asset quality is the result of the shield brought by the provisions that were created at the onset of the pandemic, in addition to the positive response of its customers to the relief programs launched in March of 2020.”
Banorte, under Chairman Carlos Hank González’s leadership, remains one of the best capitalized banks in the country, surpassing regulatory protocols set by Mexican and Basel III reforms designed to mitigate risk within the international banking sector
At the end of second quarter, thanks to its strategy of maintaining solid capital and liquidity, the bank reported a capitalization index of 21.92%, higher than the 21.75% for the previous quarter.
The bank also gained market share across key sectors, including total loan portfolio for commercial and corporate accounts, mortgages, credit cards, autos and others loans.
Banorte also accelerated its digital transformation through its partnership with Google Cloud.
As part of that collaboration, customers can securely complete transactions from their homes and receive more personalized and services, tailored to meet specific needs.
Learn more about Banorte’s second-quarter results here.