“We have also embarked on an ambitious growth programme to expand and improve our franchise. Among our goals, we plan to increase the micro lending business in Mexico and to penetrate the US Mexican-American market through the acquisition of InterNational Bank in southern Texas and Uniteller, a remittances company in New Jersey. Recently, we became the first bank in Mexico’s history to offer a 30-year fixed-rate mortgage and we will soon provide cross-border consumer financial products.”
In 2005, Banorte grew its loan portfolio by 30%. This growth was driven mainly by consumer and mortgage loans. The bank also reduced its exposure to IPAB (government) notes from 12% to less than 1%. These notes were taken on with the three banks acquired by Banorte in the 1997-2001 period. Net interest margin last year grew by 7.8%, due to an improved loan portfolio and deposit mix, as well as higher interest rates. Even though 2005 included significant non-recurrent revenues, the bank was able to boost its RoE to 30.6%, excluding these gains. Banorte has been able to successfully compete against the larger foreign-owned banks in Mexico and has remained one step ahead in product and service innovation. New product developed was highlighted by a no fee, no minimum balance debit card, as well as initiatives in the mortgage market.
