September 1, 2009
by Jonathan RoederMexicos largest domestically owned retail bank saw second-quarter profits dip 27% from the same period in 2008, following a decline of 16% in the first quarter. On March 9, Banortes shares hit 13.37 pesos, lowest since October 2004, and in August, analysts were bearish on the stock.
But the reality may not be so grim. Banorte stock traded in a 35-40 peso range in August, after performing vigorously since March and outperforming the IPC index since. Meanwhile, some believe the bank can gain market share even as it battles with rising credit defaults and deteriorating asset quality. According to the most recent data from Mexicos National Bankin
Banorte profit has dropped amid rising loan provisions and lower interest rates, as Mexico struggles through its deepest downturn in decades. It hopes to outfox the foreign competition.