Earnings release
Page 1
Financial Results Contact Information: investor@banorte.com investors.banorte.com +52 (55) 1670 2256 1Q25 As of March 31st, 2025
Page 2
First Quarter 2025 2 I. Executive Summary ....................................................................................... 3 II. Management’s Discussion & Analysis ......................................................... 8 Current Events ............................................................................................................................................... 18 Bank .................................................................................................................................................................... 20 Long Term Savings ...................................................................................................................................... 28 Brokerage ......................................................................................................................................................... 31 Other Subsidiaries ........................................................................................................................................ 32 III. Sustainability Performance ......................................................................... 33 IV. General Information ...................................................................................... 35 GFNORTE’s Analyst Coverage .............................................................................................................. 35 Capital Structure ............................................................................................................................................ 35 V. Financial Statements .................................................................................... 36 Grupo Financiero Banorte ......................................................................................................................... 36 Banorte .............................................................................................................................................................. 42 Bineo................................................................................................................................................................... 48 Seguros Banorte ........................................................................................................................................... 53 Information by Segments .......................................................................................................................... 56 VI. Appendix ........................................................................................................ 61 Accounting & Regulatory Changes ....................................................................................................... 61 Notes to Financial Statements ................................................................................................................ 62 Internal Control .............................................................................................................................................. 70 Financial Situation and Liquidity ............................................................................................................. 71 Related Parties Loans ................................................................................................................................ 73 Loan or tax liabilities .................................................................................................................................... 74 People in Charge .......................................................................................................................................... 74 Board of Directors ......................................................................................................................................... 75 Compensations and Benefits ................................................................................................................... 76 Basis for submitting and presenting Financial Statements ........................................................ 77 CNBV Indicators’ Methodology ............................................................................................................... 77 INDEX GFNORTEO GBOOY XNOR
Page 3
I. Executive Summary First Quarter 2025 3 I. Executive Summary • GFNorte reports sound earnings generation and profitability metrics during the quarter . In the annual comparison: Net Income +8%; ROE of the Group +136bps to 23.4%; ROE of the Bank +182bps to 28.0%. • The Bank's margin stood at 6.5% in 1Q25, driven by portfoli o volume and mix, cost of funds optimization, and balance sheet management to neutralize interest rate sensitivity. • Efficiency Ratio at 34.6% at the end of the first quarter, supported by sound revenue and expense management. • Stage 1 and 2 portfolio growth of +13% YoY. Corporate +26%, Commercial +16%, and Consumer +12%, driven by the dynamic internal demand. NPL ratio remained stable at 0.9% despite portfolio expansion, derived from selective credit origination and proactive portfolio management. • Solid capitalization and solvency levels of Banorte; CAR at 22.87%, CET1 at 14.40%, and LCR at 180.42% at the end of the first quarter. • Subsidiaries contribute significantly to net income : Bank grows +7%, Insurance +14%, Annuities +2%, and Brokerage Sector +136%.
Page 4
I. Executive Summary First Quarter 2025 4 GFNorte reports Net Income of Ps 15.29 billion in the first quarter of 2025, 8% higher vs. 1Q24 (BMV: GFNORTEO; OTCQX: GBOOY; Latibex: XNOR) Grupo Financiero Banorte, S.A.B. de C.V. reported results for the period ended on March 31st, 2025. Despite the first quarter of the year being characterized by the uncertainty stemming from the U.S. trade policy and its impact on economic growth and global inflation, GFNorte reported positive results driven by sound operating dynamics across the Group's various subsidiaries. Diversification of operations and implementation of effective strategies, such as developing comprehensive relationships with our clients, active balance sheet management, and selective portfolio growth, have been key to maintain solid profitability, capitalization, and asset quality metrics. At the end of 1Q25, GFNorte reported net income of Ps 15.2 9 billion, 8% higher than the same period in 2024, with the following results and relevant indicators: • Net interest income (NII) declined (2%) sequentially, due to lower repo income and valuation on FX and inflation- indexed securities valuation. Compared to 1Q24, NII increased 4%, driven by higher credit origination volume and portfolio mix diversification, as well as by a reduction in funding costs, offsetting the impact of lower rates on assets and investments. • Group's NIM stood at 6.3% in 1Q25, (22bps) below the fourth quarter and stable against 1Q24, impacted by a larger increase in earnings assets at the end of the quarter. Bank's NIM stood at 6.5% in 1Q25, (30bps) lower sequentially and higher in 21bps compared to 1Q24. • Non-interest income grew 192% QoQ and 99% YoY, both mainly driven by the increase in policy sales in the insurance company, as well as better trading income benefited by higher revenue from trading operations in the quarter and positive valuations vs 1Q24. • Non-interest expenses declined (14%) sequentially, due to a higher comparative base given the provisioning of expenses at the end of the previous year. Compared to 1Q24 , they expanded 11%, as part of the necessary investments for inertial and organic growth of the business. As a result of control led and optimize d operating expenses, efficiency ratio reached 34.6%. • ROE stood at 23.4% in 1Q25 , expanding 185bps sequentially, mainly supported by the insurance business ’ seasonality, as well as the positive performance of the rest of the subsidiaries. Compared to 1Q24 it increased 136bps, benefiting from loan portfolio growth and mix, as well as lower funding costs. ROA ended the quarter at 2.4%, 20bps higher vs. 4Q24. Bank's ROE reached 28.0% in 1Q25, increasing 18bps in the quarter and 182bps YoY. • Subsidiaries positively contributed to the group's performance and strength through revenue diversification. Compared to 1Q24, Banorte's net income grew 7%, Insurance 14%, Annuities 2%, and Brokerage Sector 136%. • Stage 1 and 2 loans grew 1% sequentially. In the quarter, the consumer portfolio remained as the main growth driver, led by the mortgage book +1% or +Ps 3.86 billion and auto +7% or +Ps 3.78 billion, due to the combination of a dynamic market demand and commercial alliances in both sectors to improve our market presence. The payroll portfolio expanded +3%, driven by new products. Credit card grew +1%, supported by a high-quality credit customer base. Commercial and corporate books increased +1%, driven by short-term financing needs, while the government portfolio decreased (3%). Compared to 1Q24 stage 1 and 2 loans expanded +13%, with double-digit growth in most portfolios. Performance was driven by consumer products: auto +28%, credit card +19%, payroll +11%, and mortgage +8%. Similarly, corporate and commercial portfolios expanded +26% and +16%, respectively, supported by working capital demand and positive FX variations. Finally, government portfolio increased +1%. • Stable asset quality of all loan portfolios. NPL ratio stood at 0.9%, improving (1bps) QoQ and YoY, resulting from the constant evaluation of our internal models and proactive alert management , that enable us to maintain asset quality. Cost of risk reached 1.8% at the end of the quarter, 5bps above 4Q24 associated with loan origination mix, and improving (3bps) YoY. Coverage ratio was 187.9%, up from 183.7% in 4Q24. • Core deposits expanded 6% sequentially, despite the seasonality of higher flows during the fourth quarter. Compared to 1Q24, demand and term deposits grew 13%. We maintain a stable base of demand deposits at 71% vs. 29% time. • Capital and liquidity strength are still top priorities for the Financial Group. Banorte’s total Capital Adequacy Ratio (CAR) reached 22.87%, and Core Equity Tier 1 (CET1) stood at 14.40%, levels that far exceed current regulatory limits, allowing the bank to comply with TLAC (Total Loss -Absorbing Capacity) requirements, that came into effect in December 2022. Quarterly average Liquidity Coverage Ratio stood at 183.48% and Leverage Ratio at 11.94%.
Page 5
I. Executive Summary First Quarter 2025 5 GFNorte-Consolidated Statement of Comprehensive Income Highlights (Million Pesos) 4Q24 1Q24 Interest Income 95,372 110,994 109,083 (2%) 14% Interest Expense 60,596 74,357 73,004 (2%) 20% Net Interest Income 34,777 36,637 36,079 (2%) 4% Net Service Fees 4,793 5,273 4,893 (7%) 2% Premium Income Ins. & Annu. (Net) 18,231 11,721 21,325 82% 17% Technical Reserves Ins. & Annu. 12,190 6,753 13,479 100% 11% Cost of Acquisition from Insurance Operations 959 571 1,006 76% 5% Net Cost of Claims and Other Obligations 7,817 8,551 8,367 (2%) 7% Trading Income 1,034 1,411 2,115 50% 104% Other Operating Income (Expenses) (830) (990) (983) 1% (18%) Non Interest Income 2,261 1,539 4,499 192% 99% Total Income 37,038 38,176 40,578 6% 10% Non Interest Expense 12,591 16,263 14,031 (14%) 11% Provisions 4,868 5,193 5,449 5% 12% Operating Income 19,579 16,720 21,098 26% 8% Taxes 5,966 3,436 6,192 80% 4% Subsidiaries' Net Income 547 358 408 14% (25%) Minority Interest (47) (82) 26 131% 154% Net Income 14,208 13,724 15,288 11% 8% Other Comprehensive Income (986) (4,152) 3,675 189% 473% Comprehensive Income 13,175 9,489 18,989 100% 44% 1Q24 4Q24 1Q25 Change GFNorte-Consolidated Statement of Financial Position Highlights (Million Pesos) 4Q24 1Q24 Asset Under Management 4,142,599 4,495,930 4,718,961 5% 14% Stage 1 Loans 1,038,042 1,171,045 1,178,394 1% 14% Stage 2 Loans 9,026 8,611 9,718 13% 8% Stage 1 & 2 Loans (a) 1,047,067 1,179,656 1,188,113 1% 13% Stage 3 Loans (b) 9,875 11,125 11,102 (0%) 12% Deferred Items ( c) 2,489 3,132 3,217 3% 29% Loan Portfolio from Insur. Subs.(d) 3,554 3,812 3,873 2% 9% Total Loans (a+b+c+d) 1,062,985 1,197,726 1,206,305 1% 13% Preventive Loan Loss Reserves 19,514 20,434 20,858 2% 7% Total Loans Net 1,043,471 1,177,292 1,185,447 1% 14% Total Assets 2,395,399 2,471,209 2,552,759 3% 7% Total Deposits 1,072,431 1,133,500 1,177,314 4% 10% Total Liabilities 2,133,771 2,222,781 2,286,624 3% 7% Equity 261,628 248,428 266,135 7% 2% 1Q25 Change 1Q24 4Q24
Page 6
I. Executive Summary First Quarter 2025 6 Profitability: NIM (1) 6.3% 6.5% 6.3% 6.2% NIM adjusted w/o Insurance & Annuities 5.7% 6.2% 6.0% ROE (2) 22.0% 21.6% 23.4% 22.8% ROA (3) 2.4% 2.2% 2.4% 2.3% Operation: Efficiency Ratio - Cost to Income (4) 34.0% 42.6% 34.6% 37.1% Operating Efficiency Ratio - Cost to Assets (5) 2.1% 2.6% 2.2% 2.3% Average LCR Banorte and SOFOM - Basel III (6) 177.7% 164.2% 183.5% Asset Quality: Non-Performing Loan Ratio 0.9% 0.9% 0.9% 0.9% Coverage Ratio 197.6% 183.7% 187.9% 187.9% Cost of Risk (7) 1.9% 1.8% 1.8% 1.8% Market References Banxico Reference Rate 11.00% 10.00% 9.00% TIIE 28 days (Average) 11.47% 10.58% 9.98% Exchange Rate Peso/Dollar 16.53 20.79 20.44 12M*Financial Ratios GFNorte 1Q24 4Q24 1Q25 1. NIM= Annualized Net Interest Income of the period / average Earning Assets of the period. 2. ROE= Annualized Net Income of the period / average Majority Equity of the period. 3. ROA= Annualized Net Income of the period / average Total Assets of the period. 4. Cost to Income Ratio= Non-Interest Expense of the period / Total Income of the period. 5. Cost to Assets= Annualized Non-Interest Expenses of the period / average Total Assets of the period. 6. Preliminary LCR calculation. To be updated upon publication of Banco de Mexico’s official calculations. 7. Cost of Risk= Annualized Provisions of the period / average Total Loans of the period. *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). Subsidiaries Net Income (Million Pesos) 4Q24 1Q24 Banco Mercantil del Norte 10,292 10,705 11,032 3% 7% Casa de Bolsa Banorte 102 194 337 74% 232% Operadora de Fondos Banorte 98 143 134 (6%) 36% Afore XXI Banorte 314 313 352 13% 12% Seguros Banorte 2,288 1,171 2,609 123% 14% Pensiones Banorte 670 806 683 (15%) 2% BAP (Holding) 0 1 0 (31%) 108% Leasing, Factoring and Warehousing 236 410 156 (62%) (34%) Bineo (188) (325) (289) 11% (54%) G. F. Banorte (Holding) 395 308 274 (11%) (31%) Total Net Income 14,208 13,724 15,288 11% 8% 1Q24 4Q24 1Q25 Change For more detail on Liquidity Coverage Ratio (LCR) See Page. 32 to 34 of the Risk Management Report
Page 7
I. Executive Summary First Quarter 2025 7 4Q24 1Q24 Earnings per share (Pesos) (1) 4.927 4.878 5.435 11% 10% Earnings per share Basic (Pesos) (2) 4.947 4.840 5.378 11% 9% Dividend per Share for the period (Pesos) 0.00 3.55 0.00 N.A. N.A. Payout for the period 0.0% 19.1% 0.0% N.A. N.A. Book Value per Share (Pesos) 90.81 88.66 94.93 7% 5% Outstanding Shares - (Million) (3) 2,883.5 2,813.2 2,813.2 0% (2%) Accounting Outstanding Shares (Million) (4) 2,870.3 2,787.4 2,791.6 0% (3%) Stock Price (Pesos) 176.37 133.97 141.93 6% (20%) P/BV (Times) 1.94 1.51 1.50 (1%) (23%) Market Capitalization (Million Dollars) 30,761 18,131 19,536 8% (36%) Market Capitalization (Million Pesos) 508,555 376,879 399,271 6% (21%) 4Q24 1Q25 Change Share Data 1Q24 1. Earnings per Share= Net Income of the period / outstanding shares in the National Securities Registry (RNV) 2. Earnings per Share Basic= Net Income of the period / weighted average of accounting outstanding shares 3. Outstanding Shares= Outstanding shares registered in the National Securities Registry (RNV) 4. Accounting Outstanding Shares= Outstanding shares registered – shares held in the Treasury– shares held in the Trust related to the stock-based compensation plan for employees. Share performance 115 125 135 145 155 165 175 185 195 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar GFNorte (19.5%) +5.9% 2025
Page 8
II. Management’s Discussion & Analysis First Quarter 2025 8 II. Management’s Discussion & Analysis In the second quarter of 2024, a new methodology for calculating ratios was adopted, in line with the standardization issued by the CNBV for the Banking Sector. The adjustment is retroactive for the periods shown in this report and the detail of the calculation is presented in the appendix. For comparison purposes, it is important to consider that GFNorte holds a 98.2618% ownership of the Bank; therefore, some figures may vary as they refer to the Group or the Bank. Net Interest Income N et Interest Inco me (N II) (M illion Pesos) 4Q24 1Q24 Interest Income 95,372 1 1 0,994 109,083 (2%) 1 4% Interest Expense 60,596 74,357 73,004 (2%) 20% GF N OR T E´s N II 34,777 36,637 36,079 (2%) 4% Credit Provisions 4,868 5,1 93 5,449 5% 1 2% N II A djusted fo r C redit R isk 29,909 31,444 30,630 (3%) 2% Average Earning Assets 2,1 93,869 2,262,41 4 2,306,327 2% 5% N et Interest M argin (1) 6.3% 6.5% 6.3% 6.2% N IM after P ro visio ns (2) 5.5% 5.6% 5.3% 5.3% N IM w/ o Insurance & A nnuities 5.7% 6.2% 6.0% N IM fro m lo an po rtfo lio (3) 8.2% 8.2% 8.3% 8.2% 12M *1Q24 4Q24 1Q25 C hange 1. NIM= Annualized Net Interest Income of the period / average Earning Assets of the period. 2. NIM after Provisions= Annualized Net Interest Income of the period adjusted for Credit Risks / average Earning Assets of the period. 3. NIM from Loan Portfolio= Annualized Net Interest Income from the credit portfolio of the period / average Stage 1 & 2 Loans. *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). Net interest income declined (2%) sequentially, mainly due to lower repo income and the negative effect of FX and inflation-indexed securities’ valuation, mitigating the benefit of lower funding interest which partially reflects the (100bps) reduction in the reference rate during the period. Compared to 1Q24, net interest income increased 4%. This result was driven by a 16% increase in the loan’s margin, due to the mix and volume of credit activity, mitigating the negative valuation effect on inflation-indexed securities (UDIS) and a lower reference rate over assets during the period. Interest expenses rose 20% in the year, in line with a larger deposit base, although with an efficient cost mix trending downwards. In the last 12 months, the average reference rate TIIE28d decreased (150bps). As a result, NIM stood at 6.3% at the end of 1Q25 , lower by (22bps) QoQ and (8bps) in the year, in line with a larger increase in earning assets in both comparison periods. NIM of the loan portfolio ended the quarter at 8.3%, 7bps above 4Q24 and 6bps vs. 1Q24. For more detail on Margin Sensitivity (Bank): 1) Refer to page 38 of the Risk Management Report
Page 9
II. Management’s Discussion & Analysis First Quarter 2025 9 Loan Loss Provisions C redit P ro visio ns (M illion Pesos) 4Q24 1Q24 Commercial, Corporate & Government 221 21 8 61 6 1 83% 1 78% Consumer 4,71 4 5,31 5 5,1 00 (4%) 8% Charge offs, discounts and others (67) (339) (266) 22% (299%) T o tal C redit P ro visio ns 4,868 5,193 5,449 5% 1 2% 1Q24 4Q24 1Q25 C hange In the quarter, credit provisions rose 5% or Ps 256 million driven by loan book growth, especially in commercial loans given the reactivation of lending activity in the portfolio, followed by the payroll loan s. Out of the Ps 5.45 billion provisions recorded in the quarter, 32% correspond to portfolio balances variations and the remaining to risk variations. In the annual comparison, provisions were up Ps 581 million or 12% above 1Q24, associated mainly to loan origination volume and mix, in line with the 12% expansion of the consumer portfolio, increasing payroll and credit card provisions; the latter impacted by Tarjetas del Futuro. Consequently, cost of risk stood at 1.8% in 1Q25, (3bps) lower YoY, benefitted by the recalibration of the internal models across our portfolios. Excluding Tarjetas del Futuro, cost of risk reached 1.7% in the quarter. Non-Interest Income Non-Interest Income (Million Pesos) 4Q24 1Q24 Net Service Fees 4,793 5,273 4,893 (7%) 2% Premium Income Ins. & Annu. (Net) 18,231 11,721 21,325 82% 17% Technical Reserves Ins. & Annu. 12,190 6,753 13,479 100% 11% Cost of Acquisition from Insurance Operations 959 571 1,006 76% 5% Net Cost of Claims and Other Obligations 7,817 8,551 8,367 (2%) 7% Trading 1,034 1,411 2,115 50% 104% Other Operating Income (Expenses) (830) (990) (983) 1% (18%) Non-Interest Income 2,261 1,539 4,499 192% 99% 1Q24 4Q24 1Q25 Change Non-interest income grew 192% sequentially and 99% or Ps 2.24 billion vs. 1Q24 , mainly benefited by: i) higher business generation in the insurance company; and ii) better trading results. Premium income from insurance and annuities expanded 82% sequentially, to a greater extent due to seasonality in the insurance business’s renewals, driven by the life portfolio. In the quarter, technical reserves had a net increase of Ps 6.73 billion, comprised of a positive Ps 7.31 billion related to higher insurance premiums, given greater flexible products’ origination and renewal seasonality, and were partially offset by (Ps 580 million) related to annuities given the inflation update. Acquisition costs grew aligned with seasonality and business generation. On the other hand, claims dropped (2%) versus 4Q24, benefiting from lower claims in the auto portfolio. Compared to 1Q24 , premium income from insurance and annuities grew 17%, mainly resulting from business generation in insurance, especially in the damages and life portfolios. As a result, technical reserves rose 11%. In addition, claims grew 7%, in line with growth and composition of the portfolio. For more detail on Internal Credit Risk Models: 1) Pages 18 to 26 of the Risk Management Report
Page 10
II. Management’s Discussion & Analysis First Quarter 2025 10 Service Fees Service Fees (Million Pesos) 4Q24 1Q24 Fund Transfers 476 775 695 (10%) 46% Account Management 475 500 497 (1%) 5% Electronic Banking Services 4,841 5,683 5,216 (8%) 8% Basic Banking Services Fees 5,792 6,958 6,408 (8%) 11% For Commercial and Government Loans 570 601 425 (29%) (25%) For Consumer Loans 2,160 2,459 2,358 (4%) 9% Fiduciary & Mortgage Appraisals 128 143 114 (20%) (11%) Mutual Funds 657 854 865 1% 32% Trading & Financial Advisory 123 176 139 (21%) 13% Other Fees Charged (1) (32) (50) 18 136% 157% Fees Charged on Services 9,397 11,140 10,328 (7% ) 10% Interchange Fees 3,348 4,080 3,790 (7%) 13% Other Fees Paid 1,257 1,787 1,644 (8%) 31% Fees Paid on Services 4,605 5,867 5,434 (7% ) 18% Net Service Fees 4,793 5,273 4,893 (7% ) 2% 1Q24 4Q24 1Q25 Change 1. Includes fees from transactions with annuities funds, warehousing services, financial advisory services, and securities trading, among others. Fees charged on services were (7%) lower in the quarter, aligned with a more normalized consumer behavior after the year-end seasonality. Compared to 1Q24, it expanded 10% mainly due to: i) higher operation with affiliated businesses and credit and debit cards, in line with private consumption resiliency; ii) increase in UniTeller’s operation -benefited by the FX and the incorporation of MORE in August 2024-; and iii) larger operation and acquisition volume of mutual funds. On the other hand, fees paid were similarly down (7%) in the quarter, mainly by lower interchange fees, reflecting the seasonal dynamism in commercial activity during the fourth quarter. Compared to 1Q24 they went up 18%, resulting from higher interchange fees, remittances operation through UniTeller , and larger loan origination through the external sales force, mainly in auto. As a result, net service fees declined (7%) sequentially and were up 2% vs. 1Q24. Trading Trading Income (Million Pesos) 4Q24 1Q24 Currency and Metals (1,432) 4,131 (1,263) (131%) 12% Derivatives (759) 205 2,408 1,075% 417% Securities 261 (245) 1,540 729% 490% Valuation (1,930) 4,091 2,686 (34% ) 239% Currency and Metals 2,655 (3,225) (532) 83% (120%) Derivatives 25 (198) (41) 79% (261%) Securities 275 418 314 (25%) 14% Trading 2,955 (3,005) (259) 91% (109% ) Other financial results 9 324 (311) (196% ) N.A. Trading Income 1,034 1,411 2,115 50% 104% 4Q24 1Q25 Change 1Q24 Trading income was up 50% in the quarter, mainly due to higher income from trading activity supported by: i) the positive effect of the appreciation of the Peso vs. the Dollar; and ii) less expenses related to the payment of structured notes. In addition, the quarter was benefited in valuation by the improvement in interest rate swaps in the bank and the effect of lower interest rates on securities. Compared to 1Q24, trading income was 104% higher, driven by the same valuation effect previously described.
Page 11
II. Management’s Discussion & Analysis First Quarter 2025 11 Other Operating Income (Expenses) Other Operating Income (Expenses) (Million Pesos) 4Q24 1Q24 Contributions to IPAB (1,136) (1,236) (1,272) 3% 12% Expenses Incurred in the Recovery of Credit Portfolio (390) (441) (389) (12%) (0%) Result for Foreclosed Assets 144 11 177 1,468% 23% Lease Income 95 86 90 5% (5%) From Insurance & Annuities 144 237 79 (67%) (45%) Others 312 352 332 (6%) 6% Other Operating Income (Expenses) (830) (990) (983) (1% ) 18% 1Q24 4Q24 1Q25 Change Other operating (expenses) declined (1%) sequentially, associated with higher income from leasing and foreclosed assets, as well as the increase in liability write -offs, partially offset by lower income in the Insurance and Annuities businesses given the constitution of reserves. Year-over year, they were 18% higher mainly by greater IPAB contribution fees, in line with a larger deposit volume, lower results in leasing and impairments in the banking business and lower income given the constitution of reserves in the Insurance and Annuities businesses. Non-Interest Expense N o n-Interest Expense (M illion Pesos) 4Q24 1Q24 Personnel 5,744 6,941 6,383 (8%) 11% Professional Fees 91 0 1 ,600 1,117 (30%) 23% Administrative and Promotional 1 ,583 2,562 1,640 (36%) 4% Rents, Depreciation & Amortization 2,941 3,527 3,192 (1 0%) 9% Various Taxes 686 882 809 (8%) 1 8% Employee Profit Sharing (PTU) 355 436 404 (7%) 1 4% Other expenses 371 31 5 486 54% 31 % N o n-Interest Expense 12,591 16,263 14,031 (14%) 11% 1Q24 4Q24 1Q25 C hange Non-interest expenses dropped (14%) sequentially , mainly due to a larger comparative base given the expense provisioning during the fourth quarter. Compared to 1Q24, expenses grew 11%, driven by: i) inertial business growth; ii) organic expansion in commercial areas and branch infrastructure; iii) wage increases and severance payments associated with the redefinition of the digital strategy; and, to a lower extent, iv) the amortization of technology projects. It’s wort h mentioning that we have adjusted the expense scheduling to equilibrate its distribution throughout the year. Efficiency ratio stood at 34.6% at the end of 1Q25 , improving (802bps) vs . 4Q24 and increasing 58bps in the year, reflecting sound income and efficient expense management.
Page 12
II. Management’s Discussion & Analysis First Quarter 2025 12 Net Income Net Income (Million Pesos) 4Q24 1Q24 Operating Income 19,579 16,720 21,098 26% 8% Subsidiaries' Net Income 547 358 408 14% (25%) Pre-Tax Income 20,126 17,078 21,506 26% 7% Taxes 5,966 3,436 6,192 80% 4% Net income from continuing operations 14,161 13,642 15,314 12% 8% Minority Interest (47) (82) 26 131% 154% Net Income 14,208 13,724 15,288 11% 8% Financial Instruments to Collect or Sell Valuation (769) (1,910) 2,215 216% 388% Result from valuation of instruments for cash flow hedging (336) (1,617) 1,670 203% 597% Defined remeasurements for employee benefits 19 (916) 35 104% 83% Cumulative Translation Adjustment (34) 148 (62) (142%) (82%) Result from valuation of reserve for unexpired risks variations in rates 133 142 (183) (229%) (237%) Other Comprehensive Income (986) (4,152) 3,675 189% 473% Comprehensive Income 13,175 9,489 18,989 100% 44% 1Q24 4Q24 1Q25 Change In the quarter, net income rose 11%, supported by the positive performance of the insurance business due to increased sales and policy renewals, favorable trading results, and lower expenses. Compared to the previous year it expanded 8%, driven by the strength of banking revenues, margin expansion through balance sheet management, and improvement in the insurance business. Effective tax rate was 29.3% at the end of the quarter. Earnings per share for the quarter were Ps 5.43. Profitability 1Q24 4Q24 1Q25 12M* ROE 22.0% 21.6% 23.4% 22.8% Intangibles 16,763 14,898 14,522 Goodwill 26,823 28,067 28,034 Average Tangible Equity 205,698 201,362 207,755 ROTE 27.4% 26.9% 29.1% 28.5% Figures in million pesos. *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). In the quarter ROE increased 185bps and 136bps compared to 1Q24, reaching 23.4%, maintaining sound profitability levels thanks to the positive performance of the banking business, as well as revenue diversification across different business units. ROTE rose 225bps in the quarter, reaching 29.1%. 1Q24 4Q24 1Q25 12M* ROA 2.4% 2.2% 2.4% 2.3% Average Risk Weighted Assets (billion pesos) 931 993 1,007 RRWA 5.8% 5.7% 5.7% *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). ROA stood at 2.4% in 1Q25, 20bps above the previous quarter and 4bps YoY, aligned with the focus on profitability and integration of our different business lines.
Page 13
II. Management’s Discussion & Analysis First Quarter 2025 13 Deposits Deposits (Million Pesos) 4Q24 1Q24 Non-Interest Bearing Demand Deposits 414,213 460,202 434,107 (6%) 5% Interest Bearing Demand Deposits 287,292 279,348 357,254 28% 24% Global Account of deposits without movements 3,623 4,009 4,205 5% 16% Total Demand Deposits 705,128 743,559 795,567 7% 13% Time Deposits – Retail 291,012 315,805 327,886 4% 13% Core Deposits 996,140 1,059,365 1,123,453 6% 13% Money Market and Credit Notes Issued 90,636 93,525 73,476 (21%) (19%) Total Bank Deposits 1,086,776 1,152,889 1,196,929 4% 10% GFNorte’s Total Deposits 1,072,431 1,133,500 1,177,314 4% 10% Third Party Deposits 293,597 241,293 251,536 4% (14%) Total Assets Under Management 1,380,373 1,394,182 1,448,464 4% 5% 1Q24 4Q24 1Q25 Change Core deposits rose 6% in the quarter, despite the high base of seasonal deposits at the end of the year. The decline in non-interest-bearing demand deposits was offset with cost deposits to cover for the natural outflow of the first quarter. In the year, core deposits grew 13%, in line with demand and time deposits’ behavior, which grew at a similar pace, mainly driven by the productivity of the commercial network, the institutional approach towards high-quality deposits, and the focus in growing relationships with remittances clients. We keep optimizing our funding mix , comprised of 71% demand deposits, out of which 55% bear no interest, and 29% time deposits. Funding costs partially reflect the (150bps) reduction in the average reference rate TIIE28d in the last twelve months and are further supported by the institutional focus on stable deposits. Money market operations and credit notes issued went down (21%) in the quarter and (19%) YoY. Overall, total bank deposits grew 4% QoQ and 10% vs.1Q24. Stage 1 and 2 loans Stage 1 and 2 Loans (Million Pesos) 4Q24 1Q24 Mortgages 255,760 272,692 276,550 1% 8% Auto Loans 44,625 53,197 56,977 7% 28% Credit Card 58,022 68,445 69,243 1% 19% Payroll 76,285 82,264 84,758 3% 11% Consumer 434,691 476,599 487,528 2% 12% Commercial 259,132 298,359 300,372 1% 16% Corporate 176,827 220,772 222,047 1% 26% Government 176,417 183,927 178,166 (3%) 1% Stage 1 and 2 loans 1,047,067 1,179,656 1,188,113 1% 13% 1Q24 4Q24 1Q25 Change In the quarter, stage 1 and 2 loans grew 1%. The consumer portfolio was the main catalyst by expanding its balance by 2% or Ps 10.9 3 billion QoQ. The auto book stands out growing 7% sequentially, or Ps 3.78 billion , supported by new commercial partnerships with dealers, which represented nearly 40% of the quarter’s origination. Mortgages grew 1% or Ps 3.86 billion vs 4Q24, driven by hyperpersonalized offerings and market conditions, as well as the generation of strategic alliances with different developers. Credit card loans rose 1% QoQ, strengthening relations with high-value clients. Payroll loans added Ps 2.49 billion, growing 3% sequentially, driven by the development of new products to meet short -term liquidity needs. Further detail on Stage 1 and 2 loans and Stage 3 loans in the Risk Management Report 1) displayed by Sector and Subsidiary, page 12 2) displayed by Federal Entities and Subsidiary, page 12 3) displayed by Remaining Term, page 13
Page 14
II. Management’s Discussion & Analysis First Quarter 2025 14 Commercial and corporate portfolios expanded 1% QoQ. The commercial book expansion was mainly driven by SME evolution, while corporate growth was characterized by short-term financing. Lastly, the government portfolio declined (3%) sequentially, in line with seasonal maturities of loans granted during the fourth quarter. In the year, stage 1 and 2 loans rose 13%, highlighting growth in the corporate book +26%, commercial +16%, and consumer +12%. The corporate portfolio amounted to Ps 222.05 billion, driven, along with the commercial portfolio, by demand for working capital and short-term lending to strengthen installed capacity. Moreover, both portfolios benefited from the depreciation of the Peso against the Dollar in the period. Expansion in the consumer portfolio was driven by an +8% larger mortgage book due to the proactive approach focused on strengthening relationships with our high -value customers through retention and cross -selling strategies; auto +28% supported by the new commercial alliances that increase our market presence , as well as by the dynamic activity in the automotive sector; credit card +19% adapting a selective and strategic approach through personalized programs and promotions to encourage revolving balances, and payroll +11%. Ultimately, the government book grew 1% as a result of a base effect stemming from the high electoral expenditure recorded last year. Within the commercial portfolio, SMEs stage 1 and 2 loans were 2% higher QoQ and 14% YoY, reflecting the strategic focus to build stronger relationships with clients in this segment . Its NPL ratio increased 30bps in the quarter, and 40bps in the year, ending at 1.72%, in line with loan portfolio expansion. SME's Loans (Million Pesos) 4Q24 1Q24 Stage 1 and 2 loans 51,570 57,869 58,880 2% 14% % of Commercial Portfolio, stage 1 and 2 loans 19.9% 19.4% 19.6% 21 bps (30 bps) % of Portfolio, stage 1 and 2 loans 4.9% 4.9% 5.0% 5 bps 3 bps NPL Ratio 1.32% 1.42% 1.72% 30 bps 40 bps 1Q24 4Q24 1Q25 Change GFNorte’s corporate book is well diversified by industry and by region, showing low concentration risk. The 20 main private sector corporate borrowers accounted for 12.3% of the Group’s stages 1 and 2 loans, with the largest corporate exposure representing 1.6%, whereas number 20 represented 0.3%. All 20 corporates have an A1 credit rating. The government book stages 1 and 2 totaled Ps 178.17 billion, declining (3%) QoQ. GFNorte’s government portfolio is well diversified by region, showing an adequate risk profile, given that 3 5.8% of the portfolio is Federal Government exposure and 83.3% of municipal and state government loans are backed by fiduciary guarantees. Market share position (using CNBV figures as of February 2025): The system’s stages 1 and 2 loans expanded 13.8% YoY; Banorte rose 15.0%, reaching a 15.2% market share, 16bps higher in the year. • Mortgage Loans: Banorte held a 19.6% market share, increasing 19bps YoY, keeping the second place in the system. • Credit Card Loans: Banorte increased its market share by 55bps in the year, ending at 11.2%. • Auto Loans: In the year, Banorte reduced (366bps) its market share to 18.1%, given the redistribution derived from Inbursa´s acquisition of Cetelem´s portfolio. • Payroll Loans: Banorte held a 21.0% market share, increasing 32bps in the year, ranking second in the market. • Commercial Loans: Market share totaled 12.7%, (including corporate and SMEs, according to the CNBV’s classification). Market share increased 37bps in the last 12 months , maintaining second place in the system. • Government Loans: Banorte’s market share increased 179bps to 27.5%, ranking second in the banking system.
Page 15
II. Management’s Discussion & Analysis First Quarter 2025 15 Stage 3 Loans In the quarter, stage 3 loans decreased (Ps 23 million), mainly due to the corporate and credit card portfolios. In the year, it increased Ps 1.23 billion, aligned with loan growth. At an institutional level, Banorte has focused on the portfolios’ selectivity, while maintaining asset quality controlled. Stage 3 Loans (Million Pesos) 4Q24 1Q24 Credit Cards 1,692 2,158 2,062 (97) 369 Payroll 2,119 2,383 2,382 (0) 263 Auto Loans 251 294 302 8 51 Mortgages 2,162 2,097 2,142 45 (20) Commercial 3,442 3,985 4,152 168 710 Corporate 200 204 58 (147) (142) Government 9 4 4 (0) (4) Total 9,875 11,125 11,102 (23) 1,228 1Q24 4Q24 1Q25 Change NPL ratio stood at 0.92% in 1Q25, remaining below the historical threshold, driven by strict control in origination and strong prevention, mitigation, and collection management. During the quarter , NPL ratio improved (1bps) both QoQ and YoY, remaining as one of the healthiest in the system. NPL Ratio 1Q24 2Q24 3Q24 4Q24 1Q25 Credit Cards 2.8% 2.8% 3.1% 3.1% 2.9% Payroll 2.7% 2.7% 2.7% 2.8% 2.7% Auto Loans 0.6% 0.5% 0.6% 0.5% 0.5% Mortgages 0.8% 0.8% 0.8% 0.8% 0.8% Commercial 1.3% 1.6% 1.6% 1.3% 1.4% SMEs 1.3% 1.4% 1.5% 1.4% 1.7% Rest of commercial 1.3% 1.7% 1.6% 1.3% 1.3% Corporate 0.1% 0.2% 0.1% 0.1% 0.0% Government 0.0% 0.0% 0.0% 0.0% 0.0% Total 0.93% 1.01% 1.00% 0.93% 0.92% Expected loss for Banco Mercantil del Norte, the Group’s largest subsidiary, was 1.6%, and the unexpected loss was 3.4%, with respect to the total portfolio as of 1Q25. Compared to 4Q24, these ratios were unchanged and reached 1.6% and 3.6% twelve months ago.
Page 16
II. Management’s Discussion & Analysis First Quarter 2025 16 Quarterly changes in accounts that affect stage 3 loans balance for the Financial Group were: Regarding risk ratings, 89% of the total loan portfolio was rated as Risk A, 7% as Risk B, and 4% as Risk C, D, and E altogether. Notes: 1. Figures for reserve creation and rating are as of March 31st, 2025. 2. The loan portfolio is rated pursuant to rules issued by the CNBV, in Chapter V, Second Title of General Provisions Applicable to Credit Institutions, and it can also be rated according to internal methodologies authorized by this same regulator. The Institution uses regulatory methodologies to rate all credit portfolios. The Institution uses internal methodologies authorized by the CNBV according to the following: for the Revolving Consumer portfolio as of January 2018, for the Auto (Individuals) portfolio as of January 2020, for the Mortgage portfolio as of July 2023, for the portfolio of commercial borrowers with sales or income greater than or equal to 14 million UDIS, from January 2019 in the Banco Mercantil del Norte subsidiary and f rom February 2019 in the subsidiaries Arrendadora and Factor Banorte and for the portfolio of commercial borrowers with sales or income lower to 14 million UDIS in Banco Mercantil del Norte and the subsidiary Arrendadora y Facot Banorte from August 2024. The Institution uses risk ratings: A1; A2; B1; B2; B3; C1; C2; D and E to classify provisions according to the portfolio segm ent and percentage of the provisions representing the outstanding balance of the loan, and which are set forth in Fifth Section of the “Reserve creation and their classification by degree of risk” found in Chapter 5, Second Title of the aforementioned regulation. Balance as of December '24 11,125 Transfer from stage 1 + 2 Loans to stage 3 8,654 Portfolio Purchase - Renewals (12) Debt reversal - Cash Collections (2,128) Discounts (88) Charge Offs (5,233) Foreclosures - Transfer from stage 3 to stage 1 + 2 Loans (1,225) Loan Portfolio Sale - Foreign Exchange Adjustments 10 Fair Value Ixe - Balance as of March '25 11,102 (Million Pesos) Stage 3 Loan variations MIDDLE MARKET COMPANIES GOVERNMENT ENTITIES FINANCIAL INTERMEDIARIES A1 1,104,793 1,205 864 72 1,070 169 3,380 A2 23,888 52 48 0 490 16 606 B1 43,561 28 5 0 1,231 56 1,321 B2 22,457 35 2 0 1,031 22 1,090 B3 18,027 66 - 0 939 13 1,019 C1 15,379 72 - 1 951 164 1,188 C2 17,850 115 36 - 2,658 187 2,996 D 8,624 715 - 8 1,307 506 2,535 E 8,221 1,328 - 87 4,275 123 5,813 Total 1,262,799 3,616 954 168 13,953 1,257 19,948 Not Classified (998) BAP Sector Book 3,873 Deferred Items 3,217 Exempt - Total 1,268,891 3,616 954 168 13,953 1,257 19,948 20,858 321 589Preventive Reserves Risk Rating of Performing Loans as of 1Q25 - GFNorte (Million Pesos) CATEGORY LOANS LOAN LOSS RESERVES COMMERCIAL CONSUMER MORTGAGES BAP Reserves TOTAL Reserves
Page 17
II. Management’s Discussion & Analysis First Quarter 2025 17 Based on the Accounting provisions, the Institution has formal policies and procedures so that, where appropriate, those loans that have elements that justify greater potential deterioration can be migrated to a higher risk stage, even if they have not complied with such requirements, according to the Accounting Policies and Criteria applicable to the loan portfolio. As of 1Q25 the Institution did not have loans considered as stage 3 under such policies. Loan Loss Reserves and Loan Loss Provisions Loan Loss Reserves as of 1Q25 totaled Ps 20.86 billion, increasing 2.1% vs. 4Q24. Charge-offs and discounts declined (1.5%) quarterly. Loan loss reserve coverage ratio stood at 187.9% in 1Q25, from 183.7% in 4Q24. Equity Shareholders' equity balance increased Ps 17.70 billion sequentially to Ps 266.14 billion; the main changes in the quarter were: net income of Ps 15.29 billion, an increase of Ps 2.22 billion from the valuation of financial instruments to be received or sold, an increase of Ps 1.67 billion from the valuation of cash flow hedging instruments, an increase of Ps 313 million from the equity-settled share-based payment plan, and a decrease of (Ps 1.58 billion) derived from interest on subordinated notes. Supplementary Notes to the Financial Information The following is a breakdown of the credit notes issued by each entity: Notes Appendix 1 Grupo Financiero Banorte Notes Appendix 1 Banco Mercantil del Norte Loan Loss Reserves (Million Pesos) Previous Period Ending Balance 20,434 Provisions charged to results 6,071 Provisions charged to retained earnings - Created with profitability margin - Reserve Portfolio Sold - Other items - Charge offs and discounts: Commercial Loans (567) Consumer Loans (4,549) Mortgage Loans (500) Foreclosed assets - (5,616) Cost of debtor support programs (17) Valorization and Others (14) Adjustments - Loan Loss Reserves at Period End 20,858 1Q25
Page 18
II. Management’s Discussion & Analysis First Quarter 2025 18 Current Events 1. BANORTE EXPERT ON SECURITY STANDARDS On January 27th, Banorte received the PCI-DSS recertification by the Security Standards Council of the Cards Payments Industry. This regulation provides greater security to operations made in our Contact Center, Digital Banking, and Acquiring Business. 2. RAPPICARD STRENGTHENS ITS LEADERSHIP AND ESTABLISHES AN AGREEMENT WITH WALMART MEXICO On February 3rd, RappiCard joined Walmart Mexico, business focused con commerce, to offer its customers the possibility to defer their purchases with no interest in Walmart Supercenter, Bodega Aurrera and Sams’ Club, either at the physical or online stores. 3. BANORTE DRI VES YOUNG TALENT: CONCLUSION OF THE THIRD EDITION OF THE INTERUNIVERSITY PROGRAM On February 24th, Banorte concluded the third edition of the Interuniversity Program regarding Public Finance and Professional Development, which took place in coordination with the Universidad Juárez del Estado de Durango (UJED) during five months. 4. BANORTE LAUNCHES NEW HOUSE PRICING INDICATOR On March 12th, Banorte launched its Indicador Banorte de Precios de Vivienda (INBAPREVI), a new tool that offers a precise and up to date vision about the real estate market in Mexico to help strategic decision making. 5. MEXICO WILL HAVE ONE OF THE PRETTIESTS STADIUMS IN THE WORLD: ESTADIO BANORTE On March 14th, Banorte and Grupo Ollamani proudly announced the end of an operation consisting in the financing, publicity and sponsorships to drive the modernization and transformation of the historic and iconic stadium for football and Mexican Culture. From now on, the cathedral of world football will be called Estadio Banorte. 6. THE CONTACT CENTER IS RECOGNIZED BY THE INSTITUTO MEXICANO DE TELESERVICIOS (IMT) On March 25th, on the twentieth edition of the National Award Employee & Customer Experience , the contact center team was awarded the category Best Customer Experience Strategy. The award given by the IMT highlights teamwork where the customer connects through an initiative designed for elderly people, offering attention that is close, empathic, and aligned to their needs. 7. BANORTE IS RECOGNIZED AS MEXICO’S BEST BANK BY GLOBAL FINANCE On March 29th, Global Finance recognized Banorte as Mexico’s Best Bank 2025. Within the considered objective criteria, asset growth, profitability, geographic reach, strategic relations and development of new business and product innovation stand out. In the subjective criteria, opinions of equity and rating analysts, banking consultants , and other people related to the sector are considered. The selections were made by Global Finance’s editors after consultations with financial executives, bankers, consulting bankers, and analysts or all around the world 8. FORBES AND STATISTA RECOGNIZE BANORTE AS ONE OF THE BEST BANKS IN THE WORLD 2025 On April 9th, Forbes published the World’s Best Banks list, where more than 50,000 clients around the world grade banks in 34 countries, in five categories: trust, terms and conditions, customer service, digital services and financial advisory . Under these criteria, Banorte positioned itself in the list as one of the Best Banks in the world in 2025. 9. BANORTE IS RECOGNIZED IN MEXICO’S LEGAL 500 AWARDS 2025 On April 9th, Legal 500 awarded Banorte as the Best Intern al Legal Team in Mexico. Such recognition was based on investigating firms and legal teams in 100 countries around the world with the objective of recommending, according to
Page 19
II. Management’s Discussion & Analysis First Quarter 2025 19 their investigations and corporate clients, the best legal teams. Legal 500 analyzes confidential information from more than 300,000 law firms’ customers, to study each area: industry, jurisdiction, customer and satisfaction metrics. 10. ACQUISITION OF TARJETAS DEL FUTURO AND EXECUTION OF STRATEGIC COMMERCIAL AGREEMENT On April 15th, GFNorte informed the investing public that GFNorte (through Banorte bank) and Rappi entered into a definitive agreement for the acquisition of the 44.28% equity interest in Tarjetas del Futuro, S.A.P.I. de C.V. (“TDF”), that Rappi will hold upon consummation of a corporate restructure in TDF. The purchase price agreed for this transaction is USD 50 million. In addition to the acquisition, Banorte, TDF and Rappi will enter into an exclusive 15 -year commercial agreement whereby GFNorte, Banorte, TDF and its affiliates will exclusively offer financial services and products such as RappiCard™ to Rappi's customers from within the Rappi Ecosystem. The closing of this transaction is subject to customary conditions, including the receipt of the regulatory approval from the Mexican antitrust authorities.
Page 20
II. Management’s Discussion & Analysis First Quarter 2025 20 Bank Banco Mercantil del Norte (Banorte) Consolidated Statement of Comprehensive Income and Consolidated Statement of Financial Position Highlights - Banorte (Million Pesos) 4Q24 1Q24 Net Interest Income 26,087 28,930 28,525 (1%) 9% Non-Interest Income 4,384 4,683 5,090 9% 16% Total Income 30,471 33,613 33,616 0% 10% Non-Interest Expense 11,047 15,087 12,625 (16%) 14% Provisions 4,910 5,222 5,339 2% 9% Operating Income 14,514 13,304 15,651 18% 8% Taxes 4,501 2,729 4,647 70% 3% Subsidiaries & Minority Interest 461 319 223 (30%) (52%) Net Income 10,474 10,894 11,227 3% 7% Balance Sheet Stage 1 Loans 1,014,428 1,143,444 1,150,220 1% 13% Stage 2 Loans 8,100 8,052 9,289 15% 15% Stage 1 & 2 Loans (a) 1,022,527 1,151,497 1,159,508 1% 13% Stage 3 Loans (b) 9,156 10,565 10,563 (0%) 15% Deferred Items ( c) 2,537 3,192 3,267 2% 29% Total Loans (a+b+c) 1,034,221 1,165,253 1,173,338 1% 13% Preventive Loan Loss Reserves 18,495 19,658 20,067 2% 9% Total Loans Net (d) 1,015,726 1,145,596 1,153,271 1% 14% Total Assets 1,787,156 1,830,596 1,909,740 4% 7% Demand Deposits 701,505 739,532 795,540 8% 13% Time Deposits 385,271 413,339 401,362 (3%) 4% Total Deposits 1,086,776 1,152,871 1,196,902 4% 10% Total Liabilities 1,627,664 1,683,028 1,748,807 4% 7% Equity 159,492 147,567 160,933 9% 1% 1Q24 4Q24 1Q25 Change Profitability: NIM (1) 6.3% 6.8% 6.5% 6.6% NIM after Provisions (2) 5.1% 5.5% 5.3% 5.4% ROE (3) 26.2% 27.8% 28.0% 29.6% ROA (4) 2.4% 2.4% 2.4% 2.5% Operation: Efficiency Ratio (Cost to Income) (5) 36.3% 44.9% 37.6% 38.7% Operating Efficiency Ratio (Cost to Assets) (6) 2.5% 3.3% 2.7% 2.8% Average Liquidity Coverage Ratio for Banorte and SOFOM - Basel III (7) 177.7% 164.2% 183.5% Asset Quality: NPL Ratio 0.9% 0.9% 0.9% 0.9% Coverage Ratio 202.0% 186.1% 190.0% 190.0% Capitalization: Net Capital/ Credit Risk Assets 30.8% 31.3% 32.0% Capital Adequacy Ratio 21.3% 21.8% 22.9% Leverage Basic Capital/ Adjusted Assets 11.5% 11.9% 11.9% Financial Ratios - Banorte 1Q24 4Q24 1Q25 12M* 1. NIM= Annualized Net Interest Income of the period / average Earning Assets of the period. 2. NIM after Provisions= Annualized Net Interest Income of the period adjusted for Credit Risks / average Earning Assets of the period. 3. ROE= Annualized Net Income of the period / average Majority Equity of the period. 4. ROA= Annualized Net Income of the period / average Total Assets of the period. 5. Cost to Income Ratio= Non-Interest Expense of the period / Total Income of the period. 6. Cost to Assets= Annualized Non-Interest Expenses of the period / average Total Assets of the period. 7. Preliminary LCR calculation. To be updated upon publication of Banco de Mexico’s official calculations. *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission).
Page 21
II. Management’s Discussion & Analysis First Quarter 2025 21 Changes vs. the previous quarter Net interest income (NII) decreased (1%) sequentially, mainly due to lower repo income, as well as the negative effect on FX valuation, mitigating the benefit of lower funding interest, given the (100bps) reduction in the reference rate during the period. As a result, NIM declined (30bps) to 6.5%, in line with the expansion in earning assets. Non-interest income increased 9% vs. 4Q24, driven by trading results and higher other operating income (expenses). Net fee income dropped (2%) sequentially, mainly related to a base effect, given the transactional strength at year end. Trading income increased 29% vs. the previous quarter , mostly due to derivatives valuation, given the improvement in interest rate swaps in the banking business, together with greater currency trading operations. Other operating (expense) improved (Ps 333 million) sequentially, given better results in foreclosed assets. Non-interest expenses were (16%) lower in the quarter, derived mainly from a larger comparative base given the expense provisioning during the fourth quarter. As a result, the efficiency ratio stood at 37.6% in the quarter. In 1Q25, provisions increased 2%, primarily due to loan book growth, mainly in the commercial portfolio given a reactivation of lending activity in this portfolio, followed by the payroll loan book. In summary, net income for the quarter reached Ps 11.23 billion, 3% higher vs. the last quarter, increasing ROE by 18bps vs. 4Q24, reaching 28.0%. ROA increased 1bps, ending at 2.4% in 1Q25. Cumulative Changes vs. the previous year Net interest income (NII) increased 9% compared to 1Q24, driven by solid growth and diversification of the loan mix, mitigating the effect of a lower reference rate in the period. Funding interest declined (5%) in the year, partially reflecting the (150bps) reduction in the average reference rate TIIE28d in the last 12 months, which offset a higher deposit base. As a result, NIM expanded 21bps in the year, ending at 6.5% at the end of 1Q25, reflecting the balance sheet sensitivity management. Non-interest income increased 16% vs. 1Q24, driven mainly by higher income from net fees and trading. Income from fees charged rose 14% YoY , associated with: i) solid remittances operation, reflected in higher transnationality in UniTeller, also benefiting from MORE’s incorporation and FX depreciation; ii) higher operation with acquiring businesses and consumer products; and iii) the increase in the fee scheme paid by Seguros Banorte to the bank for products’ distribution through bancassurance. Fees paid expanded 18%, primarily due to: i) higher interchange fees, given the dynamism of private consumption; ii) remittances operation through UniTeller; and iii) leveraging on the external sales force for loan origination. As a result, net income from fees increased 9% vs. 1Q24. Trading income was 84% higher YoY, mostly resulting from valuation lines given the: i) valuation on EUR positions; ii) better results in cross-currency swaps in the bank; and iii) securities benefiting from lower interest rates. Other operating (expenses) increased 16% vs. 1Q24 due to higher IPAB contributions, in line with deposits’ growth. Non-interest expenses expanded 14% compared to 1Q24, associated mainly with the organic expansion of commercial areas and branch infrastructure, wage increases, and the amortization of IT projects. All in, the efficiency ratio stood at 37.6% at the end of 1Q25, 130bps above 1Q24. Provisions went up 9% or Ps 430 million compared to 1Q24, driven by the volume and mix in loan origination, particularly in line with consumer portfolio growth, increasing payroll and credit card provisioning; the latter product impacted by Tarjetas del Futuro. Consequently, NIM adjusted for credit risks was 5.3% in 1Q25 , increasing by 17bps vs. 1Q24, benefiting by the recalibration of internal models across our portfolios.
Page 22
II. Management’s Discussion & Analysis First Quarter 2025 22 Net income grew 7% in the year, to Ps 11.23 billion. The result reflects the solid income generation capabilities of the bank, and the margin expansion related to the management of the balance sheet . ROE increased 1 82bps, to 2 8.0%, whereas ROA remained stable at 2.4%. Equity Shareholders' equity balance amounted to Ps 160.93 billion, a Ps 13.37 billion increase compared to the previous quarter. The main changes during the quarter were: net income of Ps 11.23 billion, an increase of Ps 1.96 billion from the valuation of financial instruments to be received or sold, an increase of Ps 1. 70 billion from the valuation of cash flow hedging instruments, an expansion of Ps 292 million from the equity -settled share-based payment plan, and a decrease of (Ps 1.61 billion) from interest on subordinated notes. Regulatory Capital (Banorte) Banorte has fully adopted the capital requirements established to date by Mexican authorities and international standards, so-called Basel III, which came into effect in January 2013. In 2025, Banorte was confirmed as a Level II - Systemically Important Financial Institution, which implies that Banorte must maintain a 0.90 pp capital buffer. Therefore, starting on December 2019, the minimum Capital Adequacy Ratio required for Banorte amounted to 11.40% (corresponding to the regulatory minimum of 10.5% plus the 0.90 pp capital supplement), which includes a minimum requirement of Core Equity Tier 1 (CET1) of 7.90%. Banorte, as a Systemically Important Financial Institution, is subject to the net capital supplement, TLAC (Total loss - absorbing capacity), incorporated in the regulation during 2021, and effective since December 2022, with annual increases of 1.625 pp, reaching a total of 6.5 pp by December 2025, taking the minimum Capital Adequacy Ratio required for Banorte to 17.90% from 11.40%. C apitalizatio n (B ano rte) (M illion Pesos) 4Q24 1Q24 Core Tier 1 1 49,373 1 35,509 1 46,262 7.9% (2.1 %) Tier 1 Capital 202,373 221 ,1 29 230,1 50 4.1 % 1 3.7% Tier 2 Capital 2,279 2,1 93 2,1 50 (1 .9%) (5.7%) Net Capital 204,653 223,322 232,300 4.0% 1 3.5% Credit Risk Assets 664,01 4 71 3,973 724,903 1 .5% 9.2% Net Capital / Credit Risk Assets 30.82% 31 .28% 32.05% 0.8 pp 1 .2 pp Total Risk Assets 962,644 1 ,025,506 1 ,01 5,569 (1 .0%) 5.5% Core Tier 1 1 5.52% 1 3.21 % 1 4.40% 1 .2 pp (1 .1 pp) Tier 1 21 .02% 21 .56% 22.66% 1 .1 pp 1 .6 pp Tier 2 0.24% 0.21 % 0.21 % (0.0 pp) (0.0 pp) C apitalizatio n R atio 21.26% 21.78% 22.87% 1 .1 0 pp 1 .61 pp 1Q24 4Q24 C hange1Q25 (*) The capitalization ratio of the last reporting period is the one submitted to the Mexican Central Bank. At the end of 1Q25 the preliminary Capital Adequacy Ratio (CAR) for Banorte was 22.87% considering credit, market, and operational risks, and 32.05% considering only credit risk. Moreover, Core Equity Tier 1 reached 14.40%, a level corresponding to a Systemically Important Institution Level I under the CNBV’s classification.
Page 23
II. Management’s Discussion & Analysis First Quarter 2025 23 CAR increased +1.10 pp vs. 4Q24 due to the following effects: 1Q25 vs. 4Q24 1.10 pp 1. Net Income in 1Q25 1.10 pp 2. Effects in Risk Assets – Market 0.52 pp 3. Securities’ mark-to-market valuation and Hedging Derivatives (1) 0.08 pp 4. Other Capital Effects (2) 0.04 pp 5. Effects in Risk Assets – Credit (Others) (3) (0.03 pp) 6. Effects in Risk Assets – Operational (0.07 pp) 7. Effects in Risk Assets – Credit (Portfolio) (0.21 pp) 8. Capital Notes (0.33 pp) (1) Includes hedging derivatives in positions that are not marked to market. (2) Includes actuarial changes from employee liability and variation of permanent and intangible investments. (3) Includes issuer, counterparty, committed credit lines, and other assets. CAR increased +1.61 pp vs. 1Q24 due to the following effects: 1Q25 vs. 1Q24 1.61 pp 1. Net Income in the period 4.23 pp 2. Capital Notes (1) 2.61 pp 3. Effects in Risk Assets – Market 0.36 pp 4. Other Capital Effects (2) 0.08 pp 5. Securities’ mark-to-market valuation and Hedging Derivatives (3) (0.10 pp) 6. Effects in Risk Assets – Operational (0.16 pp) 7. Effects in Risk Assets – Credit (Others) (4) (0.47 pp) 8. Effects in Risk Assets – Credit (Portfolio) (0.84 pp) 9. Dividend to the Financial Group (5) (4.10 pp) (1) Includes the effect of Capital Notes’ Call and the issuance of Capital Notes for USD 1.5 billion. (2) Includes actuarial changes from employee liability and variation of permanent and intangible investments. (3) Includes hedging derivatives in positions that are not marked to market. (4) Includes issuer, counterparty, committed credit lines, and other assets. (5) Ps 20 billion on June 20th, 2024; Ps 11 billion on July 31st, 2024; and Ps 11 billion on December 27 th, 2024.
Page 24
II. Management’s Discussion & Analysis First Quarter 2025 24 Evolution of Risk Assets (Banorte) In compliance with capitalization requirements established to date by Mexican authorities and the International Standards Basel III, Banorte classifies its Risk Assets as Credit, Market, and Operational, which are actively monitored by the Institution. Total Risk Assets as of March 2025 amounted to Ps 1.02 trillion, declining Ps (Ps 9.9 4 billion) vs. December 2024, and increasing Ps 52.93 billion vs. March 2024. The evolution of Risk Assets is presented below: R isk A ssets (M illion Pesos) 4Q24 1Q24 T o tal C redit 664,01 4 71 3,973 724,903 2% 9% Credit (Loan Portfolio) 555,900 584,673 594,000 2% 7% Credit (Others) 1 08,1 1 3 1 29,300 1 30,902 1 % 21 % T o tal M arket 1 69,973 1 77,866 1 54,005 (1 3%) (9%) T o tal Operatio nal 1 28,657 1 33,668 1 36,662 2% 6% T o tal 962,644 1 ,025,506 1 ,01 5,569 (1 %) 5% 1Q24 4Q24 1Q25 C hange The main quarterly changes in RWAs vs. 4Q24 were: • Increase in Credit Risk Assets (Portfolio) derived from credit portfolio growth. • Decline in Market Risk Assets given the deposits’ standard model classification, and calibration of internal models. • Increase in Operational Risk Assets driven by an increase in earning assets and computable income for the Business Indicator Method. The main annual changes in RWAs vs. 1Q24 were: • Increase in Credit Risk Assets (Portfolio) driven by the credit portfolio evolution and FX effect. • Decline in Market Risk Assets given the deposits’ standard model classification, and calibration of internal models. • Increase in Operational Risk Assets driven by an increase in earning assets and computable income for the Business Indicator Method. Leverage Ratio (Banorte) Leverage Ratio, according to CNBV’s regulation, is presented below: Leverage (B ano rte) (M illion Pesos) 4Q24 1Q24 Tier 1 Capital 202,373 221 ,1 29 230,1 50 4.1 % 1 3.7% Adjusted Assets 1 ,767,1 90 1 ,864,836 1 ,927,271 3.3% 9.1 % Leverage R atio 11.45% 11.86% 11.94% 8 pb 49 pb 4Q24 1Q25 C hange1Q24 Adjusted Assets are defined according to the General Provisions applicable to Credit Institutions.
Page 25
II. Management’s Discussion & Analysis First Quarter 2025 25 Bineo Bineo was launched in January 2024. During this initial stage of operation, it focused on evaluating and understanding its clients' behavior and profiles, adjusting, improving, and stabilizing its platform and production environments to ensure a sustainable operation as the business gain scale. Statement o f C o mprehensive Inco me and Statement o f F inancial P o sitio n H ighlights - B ineo (M illion Pesos) 4Q24 1Q24 Net Interest Income 28 47 37 (22%) 30% Non-Interest Income (2) (6) (2) 66% (29%) Total Income 27 41 35 (1 5%) 30% Non-Interest Expense 293 497 309 (38%) 5% Provisions 0 9 8 (1 0%) 1 71 5% Operating Income (267) (465) (282) 39% (6%) Taxes (79) (1 41 ) 7 1 05% 1 09% Subsidiaries & M inority Interest - - - N.A. N.A. N et Inco me (1 88) (325) (289) 11% (54%) B alance Sheet Stage 1 Loans 9 30 22 (26%) 1 37% Stage 2 Loans 0 6 5 (1 7%) N.A. Stage 1 & 2 Loans (a) 9 36 27 (25%) 1 90% Stage 3 Loans (b) - 11 9 (1 6%) N.A. Deferred Items ( c) - - - N.A. N.A. T o tal Lo ans (a+b+c) 9 47 36 (23%) 287% Preventive Loan Loss Reserves 0 13 11 (1 5%) N.A. Total Loans Net (d) 9 33 25 (26%) 1 77% T o tal A ssets 2,807 3,588 3,698 3% 32% T o tal D epo sits 10 42 36 (1 3%) 267% T o tal Liabilities 255 330 324 (2%) 27% Equity 2,551 3,259 3,373 4% 32% 1Q24 4Q24 1Q25 C hange Regulatory Capital (Bineo) Bineo has fully adopted the capital requirements established to date by Mexican authorities and international standards, so-called Basel III, which came into effect in January 2013. The minimum Capital Adequacy Ratio required for Bineo amounted to 10.50%, which includes a minimum requirement of Core Equity Tier 1 (CET1) of 7.00%. C apitalizatio n (B ineo ) (M illion Pesos) 4Q24 1Q24 Core Tier 1 556 1 ,035 1 ,1 68 1 2.9% 1 1 0.1 % Tier 1 Capital 556 1 ,035 1 ,1 68 1 2.9% 1 1 0.1 % Tier 2 Capital 0 0 0 N.A. N.A. Net Capital 556 1 ,035 1 ,1 68 1 2.9% 1 1 0.1 % Credit Risk Assets 223 406 437 7.5% 95.9% Net Capital / Credit Risk Assets 249.3% 254.6% 267.4% 1 2.8 pp 1 8.1 pp Total Risk Assets 297 477 51 5 7.9% 73.3% Core Tier 1 1 86.98% 21 6.75% 226.78% 1 0.0 pp 39.8 pp Tier 1 1 86.98% 21 6.75% 226.78% 1 0.0 pp 39.8 pp Tier 2 0.00% 0.00% 0.00% 0.0 pp 0.0 pp C apitalizatio n R atio 186.98% 216.75% 226.78% 1 0.03 pp 39.80 pp 1Q24 4Q24 1Q25 C hange (*) The capitalization ratio of the last reporting period is the one submitted to the Mexican Central Bank. At the end of 1Q25 the preliminary Capital Adequacy Ratio (CAR) for Bineo was 226.78% considering credit, market, and operational risks, and 267.4% considering only credit risk. Moreover, Core Equity Tier 1 reached 226.78%, a level corresponding to a Systemically Important Institution Level I under the CNBV’s classification.
Page 26
II. Management’s Discussion & Analysis First Quarter 2025 26 CAR increased 10.04 pp vs. 4Q24 due to the following effects: 1Q25 vs 4Q24 10.04 pp 1. Capitalization 78.42 pp 2. Intangibles’ Recognition 3.62 pp 3. Effects in Risk Assets – Market (0.08 pp) 4. Effects in Risk Assets – Operational (2.78 pp) 5. Effects in Risk Assets – Credit (12.97 pp) 6. Net Losses in 1Q25 (56.17 pp) CAR increased 39.80 pp vs. 1Q24 due to the following effects: 1Q25 vs 1Q24 39.80 pp 1. Capitalization 854.07 pp 2. Intangibles’ Recognition 31.57 pp 3. Effects in Risk Assets – Market 28.17 pp 4. Effects in Risk Assets – Operational (11.78 pp) 5. Taxes (125.53 pp) 6. Effects in Risk Assets – Credit (251.15 pp) 7. Net Losses (485.55 pp) Evolution of Risk Assets (Bineo) In compliance with capitalization requirements established to date by Mexican authorities and the International Standards Basel III, Bineo classifies its Risk Assets as Credit, Market, and Operational, which are actively monitored by the Institution. Total Risk Assets as of March 2025 amounted to Ps 515 million, increasing Ps 38 million vs December 2024 and Ps 218 million vs March 2024. The evolution of Risk Assets is presented below: R isk A ssets (M illion Pesos) 4Q24 1Q24 T o tal C redit 223 406 437 7% 96% Credit (Loan Portfolio) 19 38 35 (9%) 86% Credit (Others) 204 368 402 9% 97% T o tal M arket 20 6 6 3% (71 %) T o tal Operatio nal 54 65 72 1 1 % 34% T o tal 297 477 51 5 8% 73% 1Q24 4Q24 1Q25 C hange The main quarterly changes in RWAs vs. 4Q24 were: • Decline in Credit Risk Assets (Portfolio) in line with the decrease in the loan portfolio. • Increase in Operational Risk Assets driven by the evolution of the Business Indicator. The main annual changes in RWAs vs. 1Q24 were: • Decline in Market Risk Assets given the focus on the main operations of the entity. • Increase in Credit Risk Assets (Portfolio) driven by higher loan origination. • Increase in Operational Risk Assets driven by the evolution of the Business Indicator.
Page 27
II. Management’s Discussion & Analysis First Quarter 2025 27 Leverage Ratio (Bineo) Leverage Ratio, according to CNBV’s regulation, is presented below: Leverage(B ineo ) (M illion Pesos) 4Q24 1Q24 Tier 1 Capital 556 1 ,035 1 ,1 68 1 2.9% 1 1 0.1 % Adjusted Assets 1 ,099 1 ,594 1 ,737 9.0% 58.1 % Leverage R atio 50.57% 64.91% 67.23% 231 pb 1 665 pb 1Q24 4Q24 1Q25 C hange Adjusted Assets are defined according to the General Provisions applicable to Credit Institutions.
Page 28
II. Management’s Discussion & Analysis First Quarter 2025 28 Long Term Savings Seguros Banorte Income Statement and Balance Sheet Highlights- Seguros Banorte (Million Pesos) 4Q24 1Q24 Interest Income (Net) 931 983 1,002 2% 8% Credit Provisions (0) 0 (0) (197%) 37% Premium Revenue (Net) 15,069 8,891 18,311 106% 22% Net increase in technical reserves 6,708 2,353 9,658 311% 44% Net Cost for Insurance Operations 1,619 1,521 1,993 31% 23% Net Cost of Claims and Other Obligations 4,345 4,797 4,635 (3%) 7% Trading Income 438 620 937 51% 114% Other Operating Income (Expenses) 149 149 151 1% 1% Total Operating Income 3,914 1,971 4,115 109% 5% Non Interest Expense 611 477 543 14% (11%) Operating Income 3,303 1,494 3,571 139% 8% Taxes 1,012 319 960 201% (5%) Subsidiaries' Net Income 320 315 359 14% 12% Net income from continuing operations 2,611 1,489 2,970 99% 14% Minority Interest 8 6 9 42% 5% Net Income 2,602 1,483 2,961 100% 14% Other Comprehensive Income 6 (24) (18) 28% (384%) Comprehensive Income 2,617 1,465 2,952 102% 13% Shareholder’s Equity 27,353 26,596 29,548 11% 8% Total Assets 94,310 97,766 117,653 20% 25% Technical Reserves 56,196 60,870 74,555 22% 33% Premiums sold 18,337 9,670 22,494 133% 23% Coverage ratio of technical reserves 1.2 1.2 1.2 0.0 pp (0.0 pp) Solvency capital requirement coverage ratio 9.6 8.1 7.3 (0.8 pp) (2.4 pp) Coverage ratio of minimum capital 198.1 191.6 205.1 13.4 pp 7.0 pp Claims ratio 52.2% 72.1% 53.8% (18.3 pp) 1.5 pp Combined ratio 63.8% 92.0% 64.5% (27.5 pp) 0.7 pp ROE 39.7% 23.0% 41.9% 18.9 pp 2.1 pp 27.9% ROE ex-Afore 88.2% 45.5% 84.8% 39.4 pp (3.4 pp) 55.5% 12M*1Q24 4Q24 1Q25 Change *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). Net interest income increased 2% in the quarter and 8% vs 1Q24, mainly due to the natural growth of the portfolio and valuation benefits in instruments given lower interest rates. Premium income increased 106% sequentially, mainly associated with seasonal portfolio renewals, mainly in life products, as well as new business generation and higher placement of flexible products. As a result, the constitution of technical reserves rose Ps 7.31 billion or 311% in the quarter. Compared to 1Q24, premium income increased 22% and technical reserves 44%, in line with higher business generation in damages and life. Damages and claims dropped (3%) in the quarter, mostly driven by auto given greater selectivity in the portfolio. In the annual comparison it grew 7% , aligned with i) business growth; ii) portfolio composition; and iii) the damages portfolio due to isolated enterprise cases. Acquisition costs were up 31% quarterly and 23% vs 1Q24, driven by business growth and higher fees paid to the bank for products placed through the bancassurance model. Net operating income totaled Ps 3.57 billion in 1Q25, up 139% QoQ given the seasonal effect on policy renewals. Compared to 1Q24 it grew 8%, due to greater income from business growth.
Page 29
II. Management’s Discussion & Analysis First Quarter 2025 29 Net income for the quarter increased 100% vs 4Q24, totaling Ps 2.96 billion. Quarterly net income for Seguros Banorte, excluding its subsidiary Afore XXI Banorte, reached Ps 2.61 billion , representing 17.1% of the Group’s net income in 1Q25. ROE for the Insurance business, excluding its subsidiary Afore XXI Banorte , increased 39.4 pp in the quarter, reaching 84.8% in 1Q25, benefited by seasonality linked to the business renewals. Regarding the disclosure requested by the General Provisions applicable to the Financial Groups' holding companies, the following was presented for this reporting period: i. Risks assumed through the issuance of insurance premiums and bonds, with respect to operations and authorized branches of cancelled operations. • No cancellations were registered during 1Q25 that involved any technical risk. ii. Damages and claims, as well as compliance of reinsurers and bonding companies with their obligations. • In 1Q25, claims ratios remained under control and reinsurers complied with their obligations. iii. Costs derived from issuance of insurance policies and bonds. • There were no relevant events to disclose in 1Q25 for premium issuance. iv. Risks transfer through reinsurance and bonding contracts. • In the Damages and Life books, risks were transferred to reinsurers, for the most part to foreign reinsurers, under which there were 4 important businesses: 2 related to the energy industry and 2 to government. v. Contingencies arising from non-compliance of reinsurers and bonding companies. • There were no relevant issues related to non-compliance during 1Q25. Afore XXI Banorte Afore XXI Banorte (Million Pesos) 4Q24 1Q24 Net Income 640 636 717 13% 12% Shareholder’s Equity 23,174 25,163 23,360 (7%) 1% Total Assets 25,085 27,180 25,455 (6%) 1% AUM (SIEFORE) 1,201,239 1,303,176 1,366,404 5% 14% ROE 10.8% 10.2% 12.0% 1.7 pp 1.2 pp 11.3% 1Q24 4Q24 1Q25 Change 12M* *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). In 1Q25, Afore XXI Banorte reported net income of Ps 717 million, 13% higher sequentially and 12% in the year. In both comparisons, variations were driven by higher yields in financial products and a larger base of assets under management, which offset an additional (2pbs) reduction in management fees, effective as of January 2025. ROE reached 12.0% in 1Q25, 1.7 pp above 4Q24, incorporating the dividend payment to the Group. Compared to 1Q24, it increased by 1.2 pp. Excluding goodwill, Return on Tangible Equity (ROTE) reached 39.7% in 1Q25. Net Income of Afore XXI Banorte represented 2.3% of the Financial Group’s net income in 1Q25.
Page 30
II. Management’s Discussion & Analysis First Quarter 2025 30 Pensiones Banorte Income Statement and Balance Sheet Highlights- Pensiones Banorte (Million Pesos) 4Q24 1Q24 Interest Income (Net) 6,774 5,845 5,414 (7%) (20%) Credit Provisions 16 11 10 (14%) (38%) Premium Income (Net) 3,308 3,406 3,326 (2%) 1% Technical Reserves 5,482 4,401 3,821 (13%) (30%) Damages, Claims (Net) 3,488 3,754 3,748 (0%) 7% Trading Income (3) (0) (2) (631%) 50% Other Operating Income (Expenses) (2) 131 (75) (157%) N.A. Total Operating Income 1,091 1,216 1,085 (11%) (1%) Non Interest Expense 136 137 138 1% 2% Operating Income 955 1,079 947 (12%) (1%) Taxes 287 272 266 (2%) (7%) Subsidiaries' Net Income 2 (1) 2 380% (5%) Net Income 670 806 683 (15%) 2% Other Comprehensive Income (8) (2) 2 195% 123% Comprehensive Income 662 804 685 (15%) 3% Shareholder’s Equity 11,716 9,970 10,656 7% (9%) Total Assets 261,704 275,717 280,083 2% 7% Technical Reserves 246,774 260,853 264,768 2% 7% Premiums sold 3,308 3,406 3,326 (2%) 1% Coverage ratio of technical reserves 1.0 1.0 1.0 0.0 pp 0.0 pp Solvency capital requirement coverage ratio 11.1 7.0 8.5 1.6 pp (2.6 pp) Coverage ratio of minimum capital 52.4 44.6 45.6 1.0 pp (6.8 pp) ROE 23.3% 27.8% 26.1% (1.7 pp) 2.8 pp 24.8% 1Q24 4Q24 1Q25 Change 12M* *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission) Net interest income declined (7%) sequentially, amounting to Ps 5.41 billion, driven by lower income on inflation-indexed securities (UDIS). Compared to 1Q24 it decreased (20%) or (Ps 1.36 billion), out of which (Ps 1.67 billion) were related to the valuation effect of inflation-indexed securities (UDIS) and Ps 307 million to higher interest income. In the quarter premium issuance reduced (2%), resulting in a lower constitution of technical reserves. Reserves were also impacted by lower inflation in the period. Compared to 1Q24, premium income rose 1%, whereas reserves declined (30%), reflecting the updated inflation. Net income of Pensiones Banorte dropped (15%) in the quarter and increased 2% in the year, driven by business expansion, despite the competitive environment. Pensiones Banorte results represented 4.5% of the Financial Group’s net income in 1Q25. ROE of Pensiones Banorte stood at 26.1% in 1Q25, (1.7 pp) lower QoQ.
Page 31
II. Management’s Discussion & Analysis First Quarter 2025 31 Brokerage B ro kerage Secto r (M illion Pesos) 4Q24 1Q24 Net Income 200 337 471 40% 1 36% Shareholder’s Equity 4,648 4,743 5,301 1 2% 1 4% Assets Under M anagement 1 ,209,007 1 ,425,81 8 1,513,378 6% 25% Total Assets 268,350 260,766 266,316 2% (1 %) ROE 1 7.4% 27.8% 36.9% 9.1 pp 1 9.5 pp26.1% Net Capital (1 ) 3,651 3,541 3,964 1 2% 9% 12M *1Q24 4Q24 1Q25 C hange *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). 1) Net capital structure: Core Equity= Ps 3.97 billion, Additional Capital= Ps 0 million Casa de Bolsa Banorte and Operadora de Fondos reported net income of Ps 471 million in 1Q25, 40% higher QoQ, boosted mainly by higher trading income and financial margin. Compared to 1Q24, it increased 136%, driven by greater fee income in mutual funds and an increase in trading income. Net income from the brokerage business in 1Q25 accounted for 3.1% of the Group’s net income. Assets Under Management At the end of 1Q25, AUMs totaled Ps 1.51 trillion, 6% higher in the quarter and 25% YoY. Assets under management by mutual funds totaled Ps 395 billion in March, representing a 30.4% annual increase . Assets held in fixed income funds amounted to Ps 350 billion, 7.9% higher in the quarter and 25.8% in the year. Assets held in equity funds amounted to Ps 45 billion, expanded 4.9% QoQ and 82.5% YoY, as of March 2025. As of 1Q25, Banorte held an 8.8% share of the mutual fund market, comprised of 10.4% share in fixed income funds and 4.0% in equity funds.
Page 32
II. Management’s Discussion & Analysis First Quarter 2025 32 Other Subsidiaries Other subsidiaries (M illion Pesos) 4Q24 1Q24 A lmacenado ra B ano rte Net Income 13 (4) 26 81 9% 1 00% Shareholder’s Equity 391 406 431 6% 1 0% Inventories 592 1 ,21 9 1,504 23% 1 54% Total Assets 1 ,274 1 ,827 2,164 1 8% 70% ROE 1 3.3% (3.5%) 24.8% 28 pp 1 1 pp9.7% A rrendado ra y F acto r B ano rte (1) Net Income 224 41 4 130 (69%) (42%) Shareholder’s Equity 1 1 ,437 1 4,01 9 14,152 1% 24% Loan Portfolio 43,634 48,053 48,072 0% 1 0% Non-Performing Loans 71 9 550 530 (4%) (26%) Non-Performing Loan Ratio 1 .6% 1 .1 % 1.1% (0.0 pp) (0.5 pp) Coverage Ratio 1 04.2% 82.0% 86.3% 4 pp (1 8 pp) Loan Loss Reserves 749 451 458 2% (39%) Total Assets 53,537 58,856 59,449 1% 11% ROE 8.0% 1 2.0% 3.7% (8.3 pp) (4.3 pp) 6.9% 12M *1Q24 4Q24 1Q25 C hange *12-month ratios, according to the new calculation methodology of the CNBV (National Banking and Securities’ Commission). (1) Property, plant, and equipment includes pure operating lease portfolio of Ps 3.81 billion and proprietary fixed assets of Ps 400 million. Arrendadora y Factor Banorte Net income in 1Q25 totaled Ps 130 million, a (69%) quarterly decrease, mainly due to lower net fees and other operating income, in addition to larger reserve requirements, which combined mitigated the improvement in the financial margin. In the annual comparison, net income decreased (42%), mainly associated with higher reserve requirements and lower charged fees. Non-performing loan ratio reached 1.1% in the quarter , flat QoQ. Coverage ratio totaled 86.3%, 4 pp above 4Q24. Capital ratio for the quarter stood at 31.97% , considering total risk weighted assets of Ps 38.06 billion. Leverage ratio as of December 2024 and March 2025 reached 19.41% and 18.98%, considering adjusted assets of Ps 64.3 4 billion and Ps 64.08 billion, respectively. In 1Q25, net income from Leasing and Factoring represented 0.8% of the Group’s total results. Almacenadora Banorte Almacenadora Banorte reported net income of Ps 26 million in 1Q25, a 819% growth in the quarter, resulting from higher other operating income related to commercialization. In the annual comparison, it increased 100%, associated with higher commercialization inventory and the cancelling of accounts receivable. ROE reached 24.8% and the Capital Adequacy Ratio decreased to 88.3% from 128.1% in 4Q24, given the increase in credit and operational risk assets, considering a Ps 351 million net capital, and negotiable certificates of deposit in active warehouses for Ps 3.44 billion.
Page 33
III. Sustainability Performance First Quarter 2025 33 III. Sustainability Performance Below, we present the most significant ESG activities during the quarter, linking them to the 5 most material topics: i) Customer Relations, ii) Decarbonization, iii) Corporate Governance, iv) Diversity, Equity, and Inclusion, and v) Technology and Innovation. Environmental • Released our fourth Climate Risks and Opportunities Report , based on the recommendations of the Taskforce on Climate-related Financial Disclosures “TCFD”. Key updates include (i) the inclusion of chronic physical risks, (ii) an analysis of water risk for the agriculture and livestock sector, (iii) and the assurance of financed emissions calculations by an independent third party. (Material topic: Decarbonization) • Launched first cross-functional working group meeting to incorporate Nature-related dependencies and impacts into our financing practices, following recommendations of the Taskforce on Nature-related Financial Disclosures “TNFD”. The kick-off meeting included introductory concepts on nature and biodiversity, and their links to climate change, the financial system, and the real economy. (Material topic: Biodiversity) • Installation of 13 charging stations for electric and hybrid vehicles in 3 of our main corporate buildings in Mexico City and Monterrey. (Material topic: Decarbonization) • Purchased renewable energy from the Wholesale Electric Market for four of our six main corporate buildings, benefiting from more affordable and reliable energy sources. (Material topic: Decarbonization) • As of 1Q25, our green auto loans (Autoestrene Verde) placement amounted to Ps 1.5 billion , through 3,674 loans destined for the purchase of electric and hybrid vehicles. Estimated CO2 2,269 tCO2e emissions avoided, corresponding to Ps 865 million of the total loan placement. * The emissions reduction data is available for 54% of the total hybrid/electric fleet. (Material topic: Decarbonization) Social • During the first quarter of the year, we held 12 Financial Education workshops benefiting +1,300 government and transactional banking clients as part of our value -added offer to attract and retain payroll holders. (Material Topic: Financial Health and Education) • During March, we held various activities to foster an inclusive culture and promote female leadership and self - development: 8 virtual sessions were held, covering topics such as health, personal finance, personal and professional growth, and productivity, benefiting 3,799 female employees . Additionally, 2 in -person events were organized (Monterrey and Mexico City) as part of the Talento que Inspira program, benefiting 282 female employees. (Material topic: Diversity, Equity, and Inclusion) • As of 1Q25, we placed Ps 157 million in 80 Mujer Pyme loans, for women-led or women-owned SMEs. (Material topic: Financial Inclusion) Governance • In February, we published our 2024 Integrated Annual Report, which displays main financial and non- financial results, as well as progress in our overall strategy, including relevant milestones in our Sustainability pathway. For the second year in a row, we also published a supporting document of the Annual Report that provides an easy-access summary of key financial and non-financial indicators for 2021-2024. (Material topic: Corporate Governance)
Page 34
III. Sustainability Performance First Quarter 2025 34 • For fourth year in a row, Banorte obtained “AA” rating by MSCI highlighting our strength in Privacy & Data Security, among other relevant disclosures. (Material topic: Corporate Governance) • Banorte was included for the 4th consecutive year as Sustainability Yearbook Member by S&P’s Corporate Sustainability Assessment (CSA) , which incorporates companies with leading sustainability practices around the world. (Material topic: Corporate Governance) 1Q25 PROGRESS | FUNDACIÓN BANORTE The following are the results of Fundación Banorte's main areas of work: Nutrition, Health, Housing, Education, and Women's Empowerment, as well as corporate volunteering. Nutrition: • Un Kilo de Ayuda: We took anthropometric measurements of weight and height (basal) of 4,300 children to evaluate their nutrition, and 6,982 food packages were delivered. Health: • 343 people assisted with various laboratory tests and medical services in Puebla. • Implementation of the community doctor pilot program for 93 beneficiaries in Chiapas; a medicine preventive talk took place. Housing: • Initial assessment of beneficiaries for the housing program called: 125 pisos firmes. • 3 organizations, 7 entities and 1,055 constructive actions were defined for the rest of the year. Education: • We held a ceremony to celebrate the 10th anniversary of Mil Sueños por Cumplir and provided 2,363 support packages to our employees’ children. Women: • Bordamos en Comunidad in alliance with UNESCO: 200 certificates were handed to embroiderers in seven locations in the state of Yucatán. • Huertos de Traspatio in alliance with Fundación Origen: We continued with the 30 backyard gardens installed. • Development of Nayarit communities with Fundación Origen: 300 people benefited. • Mujeres Maravillosas: 120 women's projects to support throughout the year. Yo soy Voluntario Banorte: • APAC Day: 14 volunteers distributed gifts donated by clients and collaborators. • A financial literacy workshop was conducted for 20 participants in Puebla. ATM Campaigns: • The campaign for Casa de la Amistad concluded, raising Ps 10,893,710. The Un Kilo de Ayuda campaign began, with a current fundraising total of Ps 746,560. Recycling Campaign: • 160 kilograms of Tetrapak and 512 kilograms of plastic bottle caps were collected.
Page 35
IV. General Information First Quarter 2025 35 IV. General Information GFNORTE’s Analyst Coverage In compliance with the requirements of BOLSA MEXICANA DE VALORES, S.A.B. DE C.V, we present the list of brokers who provide an analysis coverage for GFNORTEO. Capital Structure 1. Outstanding shares registered in the National Securities Registry (RNV) 2. Outstanding shares registered – shares held in the Treasury– shares held in the Trust related to the stock-based compensation plan for employees. 3. Shares from buyback program and stock-based compensation plan for employees. Actinver - Buy 21-Apr-22 Autonomous Renato Meloni Buy 7-Apr-25 Barclays Brian Morton Buy 10-Apr-25 BBVA Rodrigo Ortega Buy 18-Feb-25 BofA M. Pierry/ E. Gabilondo Buy 16-Apr-25 BTG Pactual Eduardo Rosman Buy 11-Apr-25 CITI Gustavo Schroden Buy 10-Apr-25 GBM Pablo Ordoñez Buy 28-Jan-25 Goldman Sachs Tito Labarta Buy 8-Apr-25 Itaú BBA Jorge Pérez Araya Buy 28-Jan-25 JP Morgan Yuri Fernandes Buy 29-Jan-25 Monex J. Roberto Solano Buy 20-Apr-23 Punto Research Miguel Cabrera Buy 23-Jul-24 UBS Thiago Batista Buy 20-Apr-25 Vector Marco Montañez Buy 11-Apr-25 Bradesco Eric Ito/Francisco Navarrete Hold 28-Jan-25 HSBC Carlos Gómez Hold 17-Apr-25 Intercam Alejandra Marcos/ Eduardo López Hold 28-Jan-25 Jefferies Iñigo Vega Hold 13-Feb-25 Morgan Stanley Jorge Kuri Hold 29-Jan-25 Santander Andrés Soto Hold 16-Apr-25 COMPANY ANALYST RECOMMENDATION DATE SERIES O As of March 31st, 2025 Issued, Subscribed and Paid Shares (1) 2,813,156,594 Accounting Shares Outstanding (2) 2,791,616,344 Shares held in the Trust related to the stock-based compensation plan for employees 10,940,250 Shares held in GFNorte's Treasury (3) 10,600,000 - Stock-based compensation plan for employees 9,600,000 - Buyback program 1,000,000 Number of Shares
Page 36
V. Financial Statements First Quarter 2025 36 V. Financial Statements Grupo Financiero Banorte GFNorte- Consolidated Statement of Comprehensive Income (Million Pesos) Interest Income 95,372 95,148 103,919 110,994 109,083 Interest Expense 60,596 63,209 67,911 74,357 73,004 Net Interest Income (NII) 34,777 31,938 36,008 36,637 36,079 Credit Provisions 4,868 4,854 4,621 5,193 5,449 Net Interest Income Adjusted for Credit Risk 29,909 27,084 31,387 31,444 30,630 Fund Transfers 476 559 668 775 695 Account Management Fees 475 490 488 500 497 Electronic Banking Services 4,841 5,128 5,283 5,683 5,216 For Commercial and Government Loans 570 624 661 601 425 Consumer Loan Fees 2,160 2,351 2,424 2,459 2,358 Fiduciary & Mortgage Appraisals 128 151 139 143 114 Income from Real Estate Portfolios - - - - - Mutual Funds 657 690 785 854 865 Trading & Financial Advising Fees 123 148 209 176 139 Other Fees Charged (32) (55) (22) (50) 18 Fees Charged on Services 9,397 10,087 10,636 11,140 10,328 Interchange Fees 3,348 3,662 3,819 4,080 3,790 Insurance Fees - - - - - Other Fees Paid 1,257 1,487 1,515 1,787 1,644 Fees Paid on Services 4,605 5,150 5,334 5,867 5,434 Net Service Fees 4,793 4,937 5,302 5,273 4,893 Premium Income Ins. & Annu. (Net) 18,231 13,961 11,381 11,721 21,325 Technical Reserves Ins. & Annu. 12,190 6,717 7,657 6,753 13,479 Cost of Acquisition from Insurance Operations 959 149 219 571 1,006 Net Cost of Claims and Other Obligations 7,817 8,527 8,604 8,551 8,367 Trading Income 1,034 1,038 1,500 1,411 2,115 Contributions to IPAB (1,136) (1,167) (1,201) (1,236) (1,272) Expenses Incurred in the Recovery of Credit Portfolio (390) (385) (393) (441) (389) Result for Foreclosed Assets 144 213 245 11 177 Lease Income 95 121 91 86 90 From Insurance & Annuities 144 306 98 237 79 Others 312 315 131 352 332 Total Other Operating Income (Expense) (830) (597) (1,029) (990) (983) Total Non Interest Income 2,261 3,946 673 1,539 4,499 Total Operating Income 32,170 31,030 32,061 32,983 35,129 Personnel 5,744 5,738 5,761 6,941 6,383 Professional Fees 910 1,203 1,017 1,600 1,117 Administrative and Promotional Expenses 1,583 1,262 1,483 2,562 1,640 Rents, Depreciation & Amortization 2,941 3,228 3,259 3,527 3,192 Various Taxes 686 702 752 882 809 Employee Profit Sharing (PTU) 355 356 399 436 404 Other Expenses 371 253 361 315 486 Total Non Interest Expense 12,591 12,741 13,031 16,263 14,031 Operating Income 19,579 18,289 19,030 16,720 21,098 Subsidiaries' Net Income 547 357 451 358 408 Pre-Tax Income 20,126 18,646 19,481 17,078 21,506 Taxes 5,966 4,542 5,182 3,436 6,192 Net Income from Continuos Operations 14,161 14,104 14,298 13,642 15,314 Discontinued Operations - - - - - Net income from continuing operations 14,161 14,104 14,298 13,642 15,314 Minority Interest (47) 85 60 (82) 26 Net Income 14,208 14,018 14,238 13,724 15,288 Financial Instruments to Collect or Sell Valuation (769) (642) 1,537 (1,910) 2,215 Result from valuation of instruments for cash flow hedging (336) (762) 1,667 (1,617) 1,670 Income and Expenses related to Assets Held for Disposal - - - - - Defined remeasurements for employees benefits 19 19 19 (916) 35 Cumulative translation adjustment (34) 144 315 148 (62) Res. for holding non-monetary assets - - - - - Participation in other comprehensive income of other entities - - - - - Result from valuation of reserve for unexpired risks variations in 133 76 (112) 142 (183) Comprehensive Income (986) (1,164) 3,426 (4,152) 3,675 Comprehensive Income 13,175 12,940 17,724 9,489 18,989 2Q24 3Q24 4Q24 1Q251Q24
Page 37
V. Financial Statements First Quarter 2025 37 GFNorte -Consolidated Statement of Financial Position (Million Pesos) ASSETS Cash and Equivalents 125,072 125,894 100,108 98,704 136,906 Margin Accounts 5,120 4,747 3,935 3,998 3,569 Negotiable Instruments 357,106 360,187 399,459 400,772 409,632 Securities Available for Sale 230,955 222,090 213,788 201,079 187,613 Securities Held to Maturity 346,510 353,397 353,651 374,822 383,598 Investment in Securities 934,570 935,673 966,898 976,673 980,844 Estimate of Expected Credit Losses for Investments 164 92 90 76 74 Debtor Balance in Repo Trans, net 64,591 52,948 5,377 4,002 4,699 Securities Lending - - - - - For trading purposes 28,917 23,298 17,349 21,126 16,011 For hedging purposes 4,556 2,062 2,907 1,004 2,352 Operations w/Derivatives & Securities Transactions with Derivatives 33,473 25,360 20,256 22,130 18,364 Valuation adjustments for Asset Coverage - - - - - Commercial Loans 409,107 434,991 446,157 478,315 482,568 Loans to financial entities 24,947 26,735 37,315 39,171 37,496 Consumer Loans 175,923 184,427 193,528 200,754 207,633 Payroll Loans 73,552 76,937 79,366 79,431 81,876 Personal Loans 1,061 1,004 1,027 1,068 1,052 Credit Card 57,042 59,877 63,738 67,496 68,203 Auto Loans 44,269 46,610 49,397 52,759 56,502 Mortgage Loans 252,064 258,025 263,195 269,211 272,843 Medium and Residential 250,485 256,514 261,751 267,837 271,519 Low- income housing 1 1 1 1 1 Loans acquired from INFONAVIT or FOVISSSTE 1,578 1,510 1,443 1,373 1,323 Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities´ Loans 176,001 182,027 175,365 183,594 177,855 Performing Loans, Stage 1 1,038,042 1,086,206 1,115,560 1,171,045 1,178,394 Commercial Loans 1,905 1,548 2,674 1,645 2,354 Loans to financial entities - - - - 1 Consumer Loans 3,009 2,999 3,160 3,152 3,345 Payroll Loans 1,633 1,559 1,703 1,719 1,790 Personal Loans 40 43 43 47 40 Credit Card 980 1,006 1,004 949 1,040 Auto Loans 356 391 411 438 475 Mortgage Loans 3,696 3,457 3,575 3,482 3,707 Medium and Residential 3,624 3,383 3,501 3,407 3,629 Low- income housing 0 - - 0 - Loans acquired from INFONAVIT or FOVISSSTE 72 73 74 75 78 Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities´ Loans 416 167 368 333 312 Performing Loans, Stage 2 9,026 8,171 9,777 8,611 9,718 Commercial NPL´s 3,518 4,670 4,600 4,053 4,074 Financial Entities NPL´s 123 134 134 136 136 Consumer NPL´s 4,063 4,243 4,570 4,835 4,746 Payroll NPL´s 2,076 2,168 2,181 2,314 2,309 Personal NPL´s 44 54 72 69 73 Credit Card NPL´s 1,692 1,779 2,038 2,158 2,062 Auto NPL´s 251 243 278 294 302 Mortgage NPL´s 2,162 2,129 2,038 2,097 2,142 Medium and Residential 1,812 1,790 1,694 1,754 1,786 Low- income housing - 0 0 - - Loans acquired from INFONAVIT or FOVISSSTE 350 339 343 343 356 Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities PDL´s 9 8 7 4 4 Non-Performing Loans, Stage 3 9,875 11,184 11,348 11,125 11,102 Loan Portfolio Valued at Fair Value - - - - - Deferred Items 2,489 2,800 2,950 3,132 3,217 Loans from Insur. Subsidiaries 3,554 3,669 3,756 3,812 3,873 Deffered (BAP) - - - - - Gross Loan Portfolio 1,060,496 1,109,231 1,140,442 1,194,594 1,203,088 Preventive Loan Loss Reserves 19,244 19,978 19,907 20,122 20,537 Loan Loss-reserve for Insurance and Bail Bond Risks 270 288 301 312 321 Net from Reserves Loan Portfolio 1,043,471 1,091,766 1,123,184 1,177,292 1,185,447 Acquired Collection Rights (net) 1,032 925 843 876 835 Total Credit Portfolio 1,044,503 1,092,691 1,124,027 1,178,168 1,186,283 Account Receivables from Insurance and Annuities 14,482 11,857 8,549 5,619 16,821 Amounts recoverable by Reinsurance and Counter-guarantee 6,882 6,798 6,246 5,661 9,070 Account Receivables from Reinsurance - - - - - Benef. receivab. securization transactions - - - - - Sundry Debtors & Other Accs Rec, Net 58,448 67,205 71,465 56,229 82,358 Inventories 592 886 800 1,219 1,504 Foreclosed Assets, Net 4,885 4,842 4,964 4,600 4,635 Advanced Payments and Other Assets 10,114 11,461 11,921 14,091 11,817 Real Estate, Furniture & Equipment, Net 30,674 30,760 30,966 31,913 31,921 Rights of Use of Intangible Assets 4,057 4,206 4,289 4,440 4,107 Investment in Subsidiaries 14,514 14,832 15,283 15,629 14,662 Assets for Rights of Use of Property, Furn. & Eq. - - - - - Deferred Income Tax Assets (0) 2,023 1,664 5,244 2,720 Intangibles 16,763 16,063 15,397 14,898 14,522 Rights of Use of Intangible Assets - - - - - Goodwill 26,823 26,859 27,978 28,067 28,034 TOTAL ASSETS 2,395,399 2,435,012 2,420,031 2,471,209 2,552,759 3Q242Q241Q24 4Q24 1Q25
Page 38
V. Financial Statements First Quarter 2025 38 GFNorte -Consolidated Statement of Financial Position (Million Pesos) LIABILITIES Demand Deposits 697,414 705,265 698,455 722,181 773,797 Time Deposits-Retail 317,486 343,880 371,559 363,684 357,965 Time Deposits-Money Market 7,831 6,698 3,905 1,795 6,121 Global Account of deposits without movements 3,623 3,756 3,923 4,009 4,205 Senior Unsecured Debt 46,077 45,519 46,764 41,831 35,226 Deposits 1,072,431 1,105,118 1,124,606 1,133,500 1,177,314 Due to Banks & Correspondents: Demand Loans - - - - - Short Term Loans 24,589 27,781 25,441 22,196 23,854 Long Term Loans 8,005 10,994 11,706 12,865 11,722 Due to Banks & Correspondents 32,594 38,775 37,146 35,062 35,575 Technical Reserves 302,992 309,345 316,628 321,727 339,329 Non-assigned Securities for Settlement - - - - - Creditor Balance in Repo Trans, Net 409,317 444,159 456,823 459,441 430,144 Secs to be received in Repo Trans, Net - - - - - Collateral sold or pledged as collateral Repos (Credit Balance) 129,105 98,061 45,892 52,704 78,182 Securities' Loans - - - - - Transactions with Derivatives - - - - - Other sold collateral - - - - - Total Collateral Sold 129,105 98,061 45,892 52,704 78,182 Derivatives For trading purposes 22,128 21,520 18,128 22,130 14,694 For hedging purposes 1,977 2,168 1,866 3,798 1,055 Operations w/ Derivatives & Securities Total Derivatives 24,105 23,688 19,994 25,927 15,749 Valuation adjustments for financial liability coverage - - - - - Obligations in securitization transactions - - - - - Payable Accountsfor Reinsurance 3,979 3,709 3,089 3,018 5,712 Lease Liabilities 4,118 4,342 4,485 4,577 4,266 Creditors for settlement of transactions 23,914 29,928 42,209 30,746 44,197 Margin Accounts Payable - - - - - Creditors for collateral received in cash 20,017 14,369 10,200 9,903 7,185 Contributions payable 3,035 3,152 2,712 3,719 3,593 Suppliers - - - - - Related Party - - - - - Other Creditors & Accounts Payable 36,523 38,387 28,096 32,527 42,194 Other Payable Accounts 83,490 85,836 83,218 76,896 97,169 Contributions for future capital increases pending formalization by its governing body - - - - - Subordinated Non Convertible Debt 54,083 59,734 52,513 86,928 85,199 Income Tax Liabilities 5,564 8,082 9,832 9,130 4,979 Employee benefit liability 10,602 10,122 11,182 12,646 11,760 Deferred Credits 1,392 1,756 1,437 1,225 1,244 TOTAL LIABILITIES 2,133,771 2,192,727 2,166,845 2,222,781 2,286,624 EQUITY Paid-in Capital 15,002 14,877 14,733 14,711 14,726 Provision for future capital increase not formalized by its governing entity 0 0 0 0 - Share Subscription Premiums 47,600 47,975 48,282 48,161 47,978 Finan. instr. that qualify as capital - - - - - Subscribed Capital 62,602 62,852 63,014 62,872 62,704 Capital Reserves 34,187 29,072 23,286 22,236 22,713 Retained Earnings 154,981 127,967 126,924 114,131 168,740 Net Income 14,208 28,226 42,464 56,188 15,288 Comprehensive Income Valuation Adjustments for Fair Value through other (Formerly Securities Available for Sale) (2,226) (2,868) (1,331) (3,240) (1,071) Valuation Adjustment for Cash Flow Hedges (154) (917) 750 (866) 804 Income and expenses related to assets held for disposal - - - - - Defined remeasurements for employees benefits (1,928) (1,908) (1,889) (2,805) (2,770) Cumulative translation adjustment (143) 2 317 465 403 Res. for holding non-monetary assets - - - - - Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates 323 399 287 428 245 Participation in other comprehensive income of other entities - - - - - Earned Capital 199,248 179,973 190,808 186,537 204,352 Minority Interest (222) (539) (637) (982) (921) Total Equity 261,628 242,286 253,186 248,428 266,135 TOTAL LIABILITIES & EQUITY 2,395,399 2,435,012 2,420,031 2,471,209 2,552,759 1Q24 2Q24 3Q24 4Q24 1Q25 GFNorte -Consolidated Statement of Financial Position (Million Pesos) LIABILITIES Demand Deposits 603,364 643,394 675,678 678,923 697,414 Time Deposits-Retail 269,082 281,256 307,654 332,098 317,486 Time Deposits-Money Market 13,903 11,898 13,441 8,098 7,831 Global Account of deposits without movements 3,223 3,321 3,461 3,656 3,623 Senior Unsecured Debt 27,397 36,927 36,728 33,643 46,077 Deposits 916,968 976,796 1,036,961 1,056,417 1,072,431 Due to Banks & Correspondents: Demand Loans - - - - - Short Term Loans 18,365 18,004 18,341 25,731 24,589 Long Term Loans 15,738 13,174 14,129 7,410 8,005 Due to Banks & Correspondents 34,102 31,178 32,470 33,142 32,594 Technical Reserves 268,980 274,462 281,170 288,892 302,992 Non-assigned Securities for Settlement - - - - - Creditor Balance in Repo Trans, Net 337,016 371,092 365,518 381,012 409,317 Secs to be received in Repo Trans, Net - - - - - Collateral sold or pledged as collateral Repos (Credit Balance) 118,297 107,536 139,408 88,145 129,105 Securities' Loans - - - - - Transactions with Derivatives - - - - - Other sold collateral - - - - - Total Collateral Sold 118,297 107,536 139,408 88,145 129,105 Derivatives For trading purposes 23,836 24,428 26,483 21,534 22,128 For hedging purposes 2,892 2,370 3,647 2,259 1,977 Operations w/ Derivatives & Securities Total Derivatives 26,727 26,798 30,131 23,793 24,105 Valuation adjustments for financial liability coverage - - - - - Obligations in securitization transactions - - - - - Payable Accountsfor Reinsurance 2,326 2,789 2,405 2,379 3,979 Lease Liabilities 6,437 4,104 4,046 3,947 4,118 Creditors for settlement of transactions 26,129 18,019 17,483 13,148 23,914 Margin Accounts Payable - - - - - Creditors for collateral received in cash 23,173 22,488 23,200 19,747 20,017 Contributions payable 2,659 2,875 2,132 2,707 3,035 Suppliers - - - - - Related Party - - - - - Other Creditors & Accounts Payable 33,184 35,499 35,472 37,038 36,523 Other Payable Accounts 85,145 78,880 78,288 72,639 83,490 Contributions for future capital increases pending formalization by its governing body - - - - - Subordinated Non Convertible Debt 61,132 58,175 57,039 55,421 54,083 Income Tax Liabilities 10,666 6,367 6,070 6,934 5,564 Employee benefit liability 8,338 9,305 10,189 11,399 10,602 Deferred Credits 1,326 1,282 1,406 1,535 1,392 TOTAL LIABILITIES 1,877,460 1,948,764 2,045,100 2,025,654 2,133,771 EQUITY Paid-in Capital 14,968 14,968 14,971 14,988 15,002 Provision for future capital increase not formalized by its governing entity 0 0 0 0 0 Share Subscription Premiums 48,404 48,709 49,040 47,648 47,600 Finan. instr. that qualify as capital - - - - - Subscribed Capital 63,372 63,677 64,012 62,636 62,602 Capital Reserves 33,615 33,618 33,619 33,885 34,187 Retained Earnings 144,172 120,409 119,496 103,510 154,981 Net Income 13,018 26,106 39,375 52,418 14,208 Comprehensive Income Valuation Adjustments for Fair Value through other (Formerly Securities Available for Sale) (2,355) (2,215) (3,330) (1,411) (2,226) Valuation Adjustment for Cash Flow Hedges (770) (458) (1,573) 181 (154) Income and expenses related to assets held for disposal - - - - - Remeasurements defined benefits for employees (1,844) (1,822) (1,801) (1,947) (1,928) Cumulative foreign currency translation adjustment (28) (95) (72) (109) (143) Res. for holding non-monetary assets - - - - - Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates 211 204 356 189 323 Participation in other comprehensive income of other entities - - - - - Earned Capital 186,019 175,748 186,071 186,717 199,248 Minority Interest 3,180 3,189 3,184 (148) (222) Total Equity 252,570 242,614 253,267 249,206 261,628 TOTAL LIABILITIES & EQUITY 2,130,031 2,191,378 2,298,368 2,274,859 2,395,399 1Q23 2Q23 3Q23 4Q23 1Q24
Page 39
V. Financial Statements First Quarter 2025 39 GFNorte - Memorandum Accounts (Million Pesos) On behalf of Third Parties Customer's Banks 11 74 20 21 14 Dividends Receivable from Customers - - - - - Interest Receivable from Customers - - - - - Settlement of Customer Transactions (118) 178 (232) (150) 87 Customer Premiums - - - - - Settlement with Clients’ Foreign Currency - - - - - Margin Accounts in Futures’ Operations - - - - - Other Current Accounts - - - - - Customers’ Current Account (107) 253 (212) (129) 101 Client Securities Received in Custody 906,763 987,732 1,051,135 1,059,245 1,118,811 Securities and Documents Received in Guarantee - - - - - Client Securities Abroad - - - - - Clients’ Securities 906,763 987,732 1,051,135 1,059,245 1,118,811 Clients’ Repurchase Operations 263,692 255,046 254,166 250,325 247,458 Clients’ Repo Transactions w/ Securities - - - - - Collateral received in guarantee for customer accounts 259,568 254,832 254,028 250,038 247,285 Collateral delivered in guarantee for customer accounts 4,015 2 1 104 106 Purchase of Futures & Forward Contracts, national - - - - - Sale of Futures and Forward Contracts, national - - - - - Clients’ Option Purchase Operations - - - - - Clients’ Option Sales Operations Purchase Operations of derivatives - - - - - Clients’ Sales Operations of derivatives - - - - - Trusts under Management 280 266 267 265 261 Siefores shares held by employees - - - - - Miscellaneous accounts - - - - - Transactions On Behalf of Clients 527,556 510,146 508,462 500,732 495,109 Investment Bank Trans. on behalf of Third (Net) 365,085 360,959 335,674 336,778 363,949 TOTAL ON BEHALF OF THIRD PARTIES 1,799,297 1,859,090 1,895,061 1,896,626 1,977,970 Endorsement Guarantees Granted - - - - - Loan Obligations 471,676 533,151 582,067 572,012 588,406 Trusts 309,338 314,192 332,013 340,970 345,496 Mandates 7,172 8,477 7,619 7,867 7,662 Properties in Trusts and Warrant 316,509 322,669 339,632 348,837 353,157 Properties in Custody or Management 623,310 674,984 732,777 734,276 756,449 Shares delivered in custody or as collateral 45,942 46,392 49,442 49,442 49,842 Collateral Received 284,304 249,262 201,269 212,285 245,996 Collateral Received or sold or delivered 129,155 98,080 45,890 52,708 78,218 Assets' Deposit 3,272 3,364 2,213 3,823 4,571 Contingent Assets & Liabilities 36 37 62 30 39 Uncollected Accrued Interest from Non-Performing Loans 430 446 449 457 464 Responsibilities for bonds in force (net) - - - - - Recovery guarantees for bonds issued - - - - - Complaints received pending verification - - - - - Contingent claims - - - - - Claims paid - - - - - Claims cancelled - - - - - Recovered claims - - - - - Siefores' shares, own position - - - - - Miscellaneous accounts 666,044 692,217 683,367 726,120 720,296 TOTAL PROPRIETARY 2,540,678 2,620,603 2,637,168 2,699,991 2,797,439 1Q251Q24 2Q24 3Q24 4Q24
Page 40
V. Financial Statements First Quarter 2025 40 Operation activities Net income before taxes 21,506 Adjustments for items associated with investing activities 960 Depreciation in property, furniture, and equipment 1,085 Amortization of intangible assets 283 Participation in the net income of other entities (408) Adjustments for items associated with financing activities: 1,563 Interest associated with interbank loans and loans from other organizations 702 Interest associated with financial instruments that qualify as a liability 861 Sum 2,523 Changes in operating items 18,356 Change in margin accounts (derivative financial instruments) 429 Change in investments in financial instruments (securities) (net) (2,004) Change in repo debtors (net) (696) Change in derivative financial instruments (asset) 5,115 Change in loan portfolio (net) (8,155) Change in acquired collection rights (net) 41 Change in debtors of insurance and bail-bond companies (11,202) Amounts recoverable by reinsurance and counter-guarantee (3,409) Change in inventories (285) Change in other accounts receivable (net) (23,446) Change in foreclosed assets (net) (36) Change in traditional deposits 43,814 Change in technical reserves 17,602 Changes of interbank loans and other organizations (188) Change in creditors by repo (29,297) Change in collateral sold or given in guarantee 25,478 Change in derivative financial instruments (liability) (7,435) Change in accounts payable for reinsurance and reguarantee (liability) 2,694 Change in hedging derivative financial instruments (of hedged items related to operating activities) Change in assets/liabilities for employee benefits (886) Change in other accounts payable 20,613 Income tax payments (7,969) Net cash flows from operating activities 42,385 Investment activities Payments for the acquisition of property, furniture and equipment (3,296) Charges for disposal of property, furniture and equipment 2,198 Collections of cash dividends from permanent investments 1,378 Net cash flows from investing activities 280 Financial activities Lease liability payments (170) Payments associated with financial instruments that qualify as capital (1,581) Payments associated with financial instruments that qualify as a liability (2,590) Interest payments for lease liability (85) Net cash flows from financing activities (4,426) Net increase or decrease in cash and cash equivalents 38,239 Effects of changes in the value of cash and cash equivalents (37) Cash and cash equivalents at the beginning of the period 98,704 Cash and cash equivalents at the end of the period 136,906 GFNORTE - CONSOLIDATED STATEMENT OF CASH FLOWS JANUARY 1st, 2025 – MARCH 31st, 2025 (Million Pesos) (2,422)
Page 41
V. Financial Statements First Quarter 2025 41 Balance as of December 31st, 2024 14,711 48,161 22,236 170,320 (3,240) (866) (2,805) 428 465 249,410 (971) 248,439 CHANGES STEMMING FROM STOCKHOLDERS' DECISIONS 0 0 0 0 0 0 0 0 0 0 0 Repurchase of share-based payment plan liquidable in equity instruments 15 (179) 477 0 0 0 0 0 0 313 0 313 Total 15 (179) 477 0 0 0 0 0 0 313 0 313 OTHER CHANGES STEMMING FROM STOCKHOLDERS' DECISIONS Effect of subsidiaries, associates, and investment companies 0 (4) 0 1 (46) 0 0 0 0 (49) 0 (49) Interest on subordinated debt 0 0 0 (1,581) 0 0 0 0 0 (1,581) 0 (1,581) Total 0 (4) 0 (1,580) (46) 0 0 0 0 (1,630) 0 (1,630) COMPREHENSIVE INCOME: Net Income 0 0 0 15,288 0 0 0 0 0 15,288 26 15,314 OTHER COMPREHENSIVE INCOME Financial instruments to collect or sell valuation 0 0 0 0 2,215 0 0 0 0 2,215 0 2,215 Result from conversion of foreign operations 0 0 0 0 0 0 0 0 (62) (62) 0 (62) Cash flow hedges valuation 0 0 0 0 0 1,670 0 0 0 1,670 0 1,670 Remeasurement by result in the valuation of the unexpired risk reserve due to variation in discount rates 0 0 0 0 0 0 0 (183) 0 (183) 0 (183) Defined remeasurements for employees benefits 0 0 0 0 0 0 35 0 0 35 0 35 Total 0 0 0 15,288 2,215 1,670 35 (183) (62) 18,963 26 18,989 Minority Interest 24 24 Balance as of March 31st, 2025 14,726 47,978 22,713 184,028 (1,071) 804 (2,770) 245 403 267,056 (921) 266,135 EARNED CAPITAL Cumulative Foreign Currency Translation Adjustment Total Majority Interest Total Minority Interest Total Stockholders' Equity Remeasurement by result in the Valuation of the unexpired Risk reserve due to Variation in discount rates Fixed Paid-in Capital Remeasurement on Defined Employee Benefits Premium from Sale of Securities Capital Reserves Retained Earnings Financial instruments to Collect or Sell Valuation Cash Flow Hedges GFNORTE - CONSOLIDATED STATEMENT OF CHANGES IN EQUITY JANUARY 1st, 2025 – MARCH 31st, 2025 (Million Pesos) CONTRIBUTED CAPITAL
Page 42
V. Financial Statements First Quarter 2025 42 Banorte Banorte-Consolidated Statement of Comprehensive Income (Million Pesos) Interest Income 80,674 84,280 89,149 97,077 96,160 Interest Expense 54,587 57,429 61,501 68,147 67,635 Net Interest Income (NII) 26,087 26,851 27,648 28,930 28,525 Credit Provisions 4,910 4,761 4,471 5,222 5,339 Net Interest Income Adjusted for Credit Risk 21,177 22,090 23,177 23,708 23,186 Fund Transfers 476 559 668 775 698 Account Management Fees 475 490 488 500 497 Electronic Banking Services 4,841 5,128 5,283 5,683 5,216 For Commercial and Government Loans 417 458 390 401 423 Consumer Loan Fees 2,160 2,351 2,424 2,458 2,357 Fiduciary & Mortgage Appraisals 128 151 139 142 114 Income from Real Estate Portfolios - - - - - Mutual Funds - - - - - Trading & Financial Advising Fees - - - - - Other Fees Charged 869 931 982 1,201 1,328 Fees Charged on Services 9,366 10,069 10,374 11,161 10,634 Interchange Fees 3,348 3,662 3,819 4,080 3,790 Insurance Fees - - - - - Other Fees Paid 1,181 1,400 1,421 1,660 1,548 Fees Paid on Services 4,529 5,062 5,240 5,740 5,338 Net Service Fees 4,837 5,006 5,134 5,421 5,295 Premium Income Ins. & Annu. (Net) - - - - - Technical Reserves Ins. & Annu. - - - - - Cost of Acquisition from Insurance Operations - - - - - Net Cost of Claims and Other Obligations - - - - - Trading Income 477 506 421 678 878 Contributions to the IPAB (1,136) (1,167) (1,201) (1,236) (1,272) Expenses Incurred in the Recovery of Credit Portfolio (382) (371) (381) (431) (383) Acquired collection rights 98 137 121 202 134 Income from foreclosed assets 139 204 242 (162) 171 Donations (66) (56) (54) (81) (56) Impairment of Assets - - - - - Result on sale of Property, Furniture and Equipment (4) (5) 3 19 (12) Lease Income 0 0 0 0 0 From Insurance - - - - - Securitization Operation Valuation Result - - - - - Others 421 381 222 273 334 Total Other Operating Income (Expense) (930) (877) (1,048) (1,416) (1,083) Total Non Interest Income 4,384 4,636 4,506 4,683 5,090 Total Operating Income 25,561 26,726 27,683 28,391 28,276 Personnel 4,959 4,961 4,985 6,232 5,618 Professional Fees 759 979 839 1,143 915 Administrative and Promotional Expenses 1,538 1,243 1,462 2,978 1,797 Rents, Depreciation & Amortization 2,676 2,990 3,037 3,274 2,933 Various Taxes 584 586 639 762 676 Employee Profit Sharing (PTU) 326 326 369 402 377 Other Expenses 204 259 289 297 308 Total Non Interest Expense 11,047 11,344 11,621 15,087 12,625 Operating Income 14,514 15,382 16,062 13,304 15,651 Subsidiaries' Net Income 225 53 56 40 47 Pre-Tax Income 14,739 15,434 16,118 13,344 15,697 Taxes 4,501 3,844 4,499 2,729 4,647 Net Income from Continuos Operations 10,238 11,591 11,619 10,615 11,051 Discontinued Operations - - - - - Net income from continuing operations 10,238 11,591 11,619 10,615 11,051 Minority Interest (236) (124) (152) (279) (176) Net Income 10,474 11,715 11,770 10,894 11,227 Financial Instruments to Collect or Sell Valuation (664) (546) 1,378 (1,702) 1,960 Result from valuation of instruments for cash flow hedging (342) (776) 1,696 (1,645) 1,700 Defined remeasurements for employees benefits 20 20 20 (915) 35 Cumulative translation adjustment (30) 118 295 156 (55) Comprehensive Income (1,016) (1,184) 3,389 (4,107) 3,639 Comprehensive Income 9,222 10,407 15,008 6,509 14,690 2Q24 3Q24 4Q24 1Q251Q24
Page 43
V. Financial Statements First Quarter 2025 43 Banorte -Consolidated Statement of Financial Position (Million Pesos) ASSETS Cash and Equivalents 124,744 125,523 99,660 98,045 136,348 Margin Accounts 5,120 4,747 3,935 3,998 3,569 Negotiable Instruments 110,919 109,994 147,335 129,857 130,465 Securities Available for Sale 168,015 157,033 150,674 155,898 148,979 Securities Held to Maturity 94,921 101,890 94,941 111,477 115,957 Investment in Securities 373,855 368,917 392,950 397,232 395,402 Estimate of Expected Credit Losses for Investments 83 78 77 75 74 Debtor Balance in Repo Trans, net 125,036 98,014 45,890 52,600 78,077 Securities Lending - - - - - For trading purposes 28,831 23,294 17,351 21,119 15,996 For hedging purposes 4,556 2,062 2,907 1,004 2,352 Operations w/Derivatives & Securities Transactions with Derivatives 33,387 25,356 20,258 22,123 18,348 Operations w/Derivatives & Securities 158,423 123,370 66,148 74,722 96,425 Valuation adjustments for Asset Coverage - - - - - Commercial Loans 374,240 397,832 406,873 433,979 438,001 Financial Intermediaries´ Loans 42,557 46,313 55,745 57,348 55,312 Consumer Loans 175,912 184,411 193,490 200,724 207,610 Payroll Loans 73,552 76,937 79,366 79,431 81,876 Personal Loans 1,051 988 989 1,039 1,031 Credit Card 57,042 59,877 63,738 67,496 68,202 Auto Loans 44,267 46,609 49,397 52,758 56,502 Mortgage Loans 252,064 258,025 263,195 269,211 272,843 Medium and Residential 250,485 256,514 261,751 267,837 271,519 Low- income housing 1 1 1 1 1 Loans acquired from INFONAVIT or FOVISSSTE 1,578 1,510 1,443 1,373 1,323 Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities´ Loans 169,655 171,087 165,839 182,182 176,452 Performing Loans, Stage 1 1,014,428 1,057,669 1,085,141 1,143,444 1,150,220 Commercial Loans 1,395 1,363 2,602 1,425 2,241 Financial Intermediaries´ Loans - - - - 1 Consumer Loans 3,009 2,998 3,155 3,146 3,340 Payroll Loans 1,633 1,559 1,703 1,719 1,790 Personal Loans 40 42 37 40 35 Credit Card 980 1,006 1,004 949 1,040 Auto Loans 356 391 411 438 475 Mortgage Loans 3,696 3,457 3,575 3,482 3,707 Medium and Residential 3,624 3,383 3,501 3,407 3,629 Low- income housing 0 - - 0 - Loans acquired from INFONAVIT or FOVISSSTE 72 73 74 75 78 Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities´ Loans - - - - - Performing Loans, Stage 2 8,100 7,818 9,332 8,052 9,289 Commercial NPL´s 2,808 3,867 3,689 3,512 3,552 Financial Intermediaries NPL´s 119 130 130 132 132 Consumer NPL´s 4,063 4,243 4,567 4,824 4,737 Payroll NPL´s 2,076 2,168 2,181 2,314 2,309 Personal NPL´s 44 53 69 58 64 Credit Card NPL´s 1,692 1,779 2,038 2,158 2,062 Auto NPL´s 251 243 278 294 302 Mortgage NPL´s 2,162 2,129 2,038 2,097 2,142 Medium and Residential 1,812 1,790 1,694 1,754 1,786 Low- income housing - 0 0 - - Loans acquired from INFONAVIT or FOVISSSTE 350 339 343 343 356 Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities PDL´s 4 3 2 - - Non-Perfoming Loans, Stage 3 9,156 10,373 10,426 10,565 10,563 Loan Portfolio Valued at Fair Value - - - - - Deferred Items 2,537 2,850 3,005 3,192 3,267 Gross Loan Portfolio 1,034,221 1,078,711 1,107,904 1,165,253 1,173,338 Preventive Loan Loss Reserves 18,495 19,119 18,950 19,658 20,067 Net Loan Portfolio 1,015,726 1,059,592 1,088,954 1,145,596 1,153,271 Acquired Collection Rights (net) 1,032 925 843 876 835 Total Credit Portfolio 1,016,758 1,060,517 1,089,796 1,146,472 1,154,106 Benef. receivab. securization transactions - - - - - Sundry Debtors & Other Accs Rec, Net 53,257 61,115 65,416 49,179 66,659 Inventories - - - - - Foreclosed Assets, Net 4,809 4,769 4,892 4,533 4,568 Advanced Payments and Other Assets 4,188 4,862 4,161 5,798 5,345 Real Estate, Furniture & Equipment, Net 25,934 26,070 26,341 27,032 26,887 Rights of Use of Intangible Assets 3,948 4,091 4,195 4,363 4,032 Investment in Subsidiaries 1,433 1,446 1,502 1,537 1,468 Assets for Rights of Use of Property, Furn. & Eq. - - - - - Deferred Income Tax Assets 101 2,549 1,785 3,790 1,435 Intangibles 13,172 12,441 11,771 11,231 10,863 Rights of Use of Intangible Assets - - - - - Goodwill 1,494 1,530 2,649 2,738 2,706 TOTAL ASSETS 1,787,156 1,801,868 1,775,125 1,830,596 1,909,740 1Q24 2Q24 3Q24 4Q24 1Q25
Page 44
V. Financial Statements First Quarter 2025 44 Banorte -Consolidated Statement of Financial Position (Million Pesos) LIABILITIES Demand Deposits 701,505 709,158 711,211 739,532 791,335 Time Deposits-Retail 317,643 343,987 371,569 363,697 358,005 Time Deposits-Money Market 7,831 6,698 3,905 1,795 6,121 Global Account of deposits without movements 3,623 3,756 3,923 4,009 4,205 Senior Unsecured Debt 56,174 55,549 51,772 43,838 37,236 Deposits 1,086,776 1,119,149 1,142,380 1,152,871 1,196,902 Due to Banks & Correspondents: Demand Loans 940 1,598 1,877 1,365 1,511 Short Term Loans 6,155 5,939 3,895 4,007 3,551 Long Term Loans 4,383 6,995 7,120 7,692 7,599 Due to Banks & Other Correspondents 11,478 14,533 12,892 13,064 12,661 Technical Reserves - - - - - Non-assigned Securities for Settlement - - - - - Creditor Balance in Repo Trans, Net 235,095 243,129 253,674 267,192 268,980 Secs to be received in Repo Trans, Net - - - - - Collateral sold or pledged as collateral: Repos (Credit Balance) 125,098 98,059 45,890 52,600 78,077 Securities' Loans - - - - - Transactions with Derivatives - - - - - Other sold collateral - - - - - Total Collateral sold 125,098 98,059 45,890 52,600 78,077 Derivatives For trading purposes 22,159 21,628 18,249 22,236 14,794 For hedging purposes 1,977 2,168 1,866 3,798 1,055 Total Derivatives 24,136 23,796 20,116 26,034 15,848 Valuation adjustments for financial liability coverage - - - - - Obligations in securitization transactions - - - - - Payable Accountsfor Reinsurance - - - - - Lease Liabilities 4,005 4,222 4,386 4,496 4,188 Creditors for settlement of transactions 21,607 26,804 39,445 27,249 32,346 Margin Accounts Payable - - - - - Creditors for collateral received in cash 20,017 14,369 10,200 9,903 7,185 Contributions payable 1,618 1,626 1,603 2,218 1,897 Suppliers - - - - - Related Party - - - - - Other Creditors & Accounts Payable 30,099 31,375 21,523 22,267 30,210 Other Payable Accounts 73,341 74,172 72,770 61,638 71,638 Contributions for future capital increases pending formalization by its governing body - - - - - Subordinated Non Convertible Debt 54,083 59,734 52,513 86,928 85,199 Income Tax Liabilities 2,872 5,665 6,864 5,871 3,497 Employee benefit liability 9,650 9,051 9,897 11,259 10,757 Deferred Credits 1,130 1,131 1,081 1,076 1,061 TOTAL LIABILITIES 1,627,664 1,652,641 1,622,462 1,683,028 1,748,807 EQUITY Paid-in Capital 18,795 18,795 18,795 18,795 18,795 Provision for future capital increase not formalized by its governing entity - - - - - Share Subscription Premiums 4,773 5,080 5,390 5,704 5,996 Finan. instr. that qualify as capital - - - - - Subscribed Capital 23,567 23,875 24,184 24,499 24,791 Capital Reserves 18,959 18,959 18,959 18,959 18,959 Retained Earnings 114,036 93,053 80,993 69,062 112,309 Net Income 10,474 22,189 33,960 44,854 11,227 Comprehensive Income Valuation Adjustments for Fair Value through other (Formerly Securities Available for Sale) (1,638) (2,182) (806) (2,508) (552) Valuation Adjustment for Cash Flow Hedges (159) (934) 762 (883) 816 Income and expenses related to assets held for disposal - - - - - Defined remeasurements for employees benefits (1,974) (1,954) (1,934) (2,849) (2,814) Cumulative translation adjustment (221) (103) 192 348 293 Res. for holding non-monetary assets - - - - - Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates - - - - - Participation in other comprehensive income of other entities - - - - - Earned Capital 139,478 129,029 132,125 126,982 140,238 Minority Interest (3,553) (3,678) (3,646) (3,914) (4,095) Total Equity 159,492 149,226 152,663 147,567 160,933 TOTAL LIABILITIES & EQUITY 1,787,156 1,801,868 1,775,125 1,830,596 1,909,740 2Q24 3Q24 4Q24 1Q251Q24
Page 45
V. Financial Statements First Quarter 2025 45 Banorte - Memorandum Accounts (Million Pesos) Investment Banking transactions for third parties, net - - - - - TOTAL ON BEHALF OF THIRD PARTIES - - - - - Endorsement Guarantees Granted - - - - - Loan Obligations 421,539 482,871 515,900 514,486 525,736 Trusts 309,338 314,192 332,013 340,970 345,496 Mandates 7,172 8,477 7,619 7,867 7,662 Properties in Trusts and Warrant 316,509 322,669 339,632 348,837 353,157 Properties in Custody or Management 685,799 705,121 708,520 704,122 725,476 Shares delivered in custody or as collateral - - - - - Collateral Received 263,275 240,315 190,755 203,010 233,283 Collateral Received or sold or delivered 125,140 98,078 45,888 52,604 78,112 Deposits of assets - - - - - Contingent assets & liabilites 36 37 62 30 39 Uncollected Accrued Interest from Non-Performing Loans 408 421 422 426 428 Liabilities for active bonds (net) - - - - - Recovery guarantees for issued bonds - - - - - Complaints received pending verification - - - - - Contingent claims - - - - - Claims paid - - - - - Claims cancelled - - - - - Recovered claims - - - - - Miscellaneous accounts 613,469 632,365 625,103 665,363 658,267 TOTAL PROPRIETARY 2,426,174 2,481,877 2,426,283 2,488,878 2,574,499 1Q24 2Q24 3Q24 4Q24 1Q25
Page 46
V. Financial Statements First Quarter 2025 46 Operation activities Net income before taxes 15,698 Adjustments for items associated with investing activities 1,155 Depreciation in property, furniture, and equipment 1,016 Amortization of intangible assets 186 Participation in the net income of other entities (47) Adjustments for items associated with financing activities: 1,166 Interest associated with interbank loans and loans from other organizations 256 Interest associated with financial instruments that qualify as a liability 910 Sum 2,321 Changes in operating items 25,486 Change in margin accounts (derivative financial instruments) 429 Change in investments in financial instruments (securities) (net) 3,788 Change in repo debtors (net) (25,477) Change in derivative financial instruments (asset) 5,124 Change in loan portfolio (net) (7,675) Change in acquired collection rights (net) 41 Change in other accounts receivable (net) (17,480) Change in foreclosed assets (net) (35) Change in other operating assets (net) 853 Change in traditional deposits 44,031 Changes of interbank loans and other organizations (660) Change in creditors by repo 1,788 Change in collateral sold or given in guarantee 25,477 Change in derivative financial instruments (liability) (7,442) Change in other operating liabilities (15) Change in hedging derivative financial instruments (2,396) Change in assets/liabilities for employee benefits (502) Change in other accounts payable 10,449 Income tax payments (4,812) Net cash flows from operating activities 43,505 Investment activities Payments for the acquisition of property, furniture and equipment (3,020) Charges for the acquisition of property, furniture, and equipment 2,240 Charges of cash dividends coming from permanent investments 117 Net cash flows from investing activities (663) Financial activities Lease liability payments (171) Payments associated with financial instruments that qualify as capital (1,609) Payments associated with financial instruments that qualify as a liability (2,638) Interest payments for lease liability (84) Net cash flows from financing activities (4,502) Net increase or decrease in cash and cash equivalents 38,340 Effects of changes in the value of cash and cash equivalents (37) Cash and cash equivalents at the beginning of the period 98,045 Cash and cash equivalents at the end of the period 136,348 BANORTE - CONSOLIDATED STATEMENT OF CASH FLOWS JANUARY 1st, 2025 – MARCH 31st, 2025 (Million Pesos)
Page 47
V. Financial Statements First Quarter 2025 47 Balance as of December 31st, 2024 18,795 5,704 18,959 113,916 (2,508) (883) (2,849) 348 151,482 (3,914) 147,568 CHANGES STEMMING FROM STOCKHOLDERS' DECISIONS 0 0 0 0 0 0 0 0 0 0 0 Plan based on shares payable in equity instruments 0 292 0 0 0 0 0 0 292 0 292 Total 0 292 0 0 0 0 0 0 292 0 292 OTHER CHANGES STEMMING FROM STOCKHOLDERS' DECISIONS Interest on subordinated debt 0 0 0 (1,609) 0 0 0 0 (1,609) 0 (1,609) Effect of subsidiaries, associates, and investment companies 0 0 0 1 (4) 0 0 0 (3) 0 (3) Total 0 0 0 (1,608) (4) 0 0 0 (1,612) 0 (1,612) COMPREHENSIVE INCOME Net Income 0 0 0 11,227 0 0 0 0 11,227 (176) 11,051 OTHER COMPREHENSIVE INCOME Financial instruments to collect or sell valuation 0 0 0 0 1,960 0 0 0 1,960 0 1,960 Result from conversion of foreign operations 0 0 0 0 0 0 0 (55) (55) 0 (55) Cash flow hedges valuation 0 0 0 0 0 1,699 0 0 1,699 0 1,699 Defined remeasurements for employees' benefits 0 0 0 0 0 0 35 0 35 0 35 Total 0 0 0 11,227 1,960 1,699 35 (55) 14,866 (176) 14,690 Minority Interest 0 0 0 0 0 0 0 0 0 (5) (5) Balance as of March 31st, 2025 18,795 5,996 18,959 123,535 (552) 816 (2,814) 293 165,028 (4,095) 160,933 (Million Pesos) BANORTE - CONSOLIDATED STATEMENT OF CHANGES IN EQUITY JANUARY 1st, 2025 – MARCH 31st, 2025 CONTRIBUTED CAPITAL EARNED CAPITAL Retained Earnings Fixed Paid-in Capital Premium from Sale of Securities Capital Reserves Total Stockholders' Equity Financial instruments to Collect or Sell Valuation Results from Cash Flow Hedges Remeasurement on Defined Employee Benefit Cumulative Foreign Currency Translation Adjustment Total Majority Interest Minority Interest
Page 48
V. Financial Statements First Quarter 2025 48 Bineo Bineo-Statement of Comprehensive Income (Million Pesos) Interest Income 28 35 45 48 37 Interest Expense (0) 0 0 0 0 Net Interest Income (NII) 28 35 45 47 37 Credit Provisions 0 1 6 9 8 Net Interest Income Adjusted for Credit Risk 28 34 39 39 29 Fund Transfers - - - - - Account Management Fees - 0 0 0 0 Electronic Banking Services - 0 0 - - For Commercial and Government Loans - - - - - Consumer Loan Fees 0 0 0 0 0 Fiduciary & Mortgage Appraisals - - - - - Income from Real Estate Portfolios - - - - - Mutual Funds - - - - - Trading & Financial Advising Fees - - - - - Other Fees Charged (0) (0) (0) 0 (0) Fees Charged on Services 0 0 0 1 0 Interchange Fees - - - - - Insurance Fees - - - - - Other Fees Paid 2 2 2 7 3 Fees Paid on Services 2 2 2 7 3 Net Service Fees (2) (1) (2) (7) (3) Premium Income Ins. & Annu. (Net) - - - - - Technical Reserves Ins. & Annu. - - - - - Cost of Acquisition from Insurance Operations - - - - - Net Cost of Claims and Other Obligations - - - - - Trading Income 0 0 (0) (0) 0 Contributions to the IPAB - - - - - Expenses Incurred in the Recovery of Credit Portfolio - - - - - Acquired collection rights - - - - - Income from foreclosed assets - - - - - Donations - (0) - (0) - Impairment of Assets - - - - - Result on sale of Property, Furniture and Equipment - - - - - Lease Income - - - - - From Insurance - - - - - Securitization Operation Valuation Result - - - - - Others 0 (0) (0) 0 1 Total Other Operating Income (Expense) 0 (0) (0) 0 1 Total Non Interest Income (2) (2) (2) (6) (2) Total Operating Income 26 33 36 32 27 Personnel 115 104 110 99 111 Professional Fees 14 77 119 177 70 Administrative and Promotional Expenses 24 38 59 2 6 Rents, Depreciation & Amortization 99 79 46 160 81 Various Taxes 22 31 34 39 22 Employee Profit Sharing (PTU) - - - - - Other Expenses 19 23 22 21 18 Total Non Interest Expense 293 351 389 497 309 Operating Income (267) (318) (353) (465) (282) Subsidiaries' Net Income - - - - - Pre-Tax Income (267) (318) (353) (465) (282) Taxes (79) (97) (106) (141) 7 Net Income from Continuos Operations (188) (221) (247) (325) (289) Discontinued Operations - - - - - Net income from continuing operations (188) (221) (247) (325) (289) Minority Interest - - - - - Net Income (188) (221) (247) (325) (289) Financial Instruments to Collect or Sell Valuation - - - - - Result from valuation of instruments for cash flow hedging - - - - - Income and Expenses related to Assets Held for Disposal - - - - - Defined remeasurements for employees benefits 0 0 0 1 (0) Cumulative translation adjustment - - - - - Res. for holding non-monetary assets - - - - - Participation in other comprehensive income of other entities - - - - - Result from valuation of reserve for unexpired risks variations in rates - - - - - Comprehensive Income 0 0 0 1 (0) Comprehensive Income (188) (221) (247) (324) (289) 1Q24 2Q24 3Q24 4Q24 1Q25
Page 49
V. Financial Statements First Quarter 2025 49 Bineo -Statement of Financial Position (Million Pesos) ASSETS Cash and Equivalents 952 1,608 1,893 1,391 1,523 Margin Accounts - - - - - Negotiable Instruments - - - - - Securities Available for Sale - - - - - Securities Held to Maturity - - - - - Investment in Securities - - - - - Estimate of Expected Credit Losses for Investments - - - - - Debtor Balance in Repo Trans, net - - - - - Securities Lending - - - - - For trading purposes - - - - - For hedging purposes - - - - - Operations w/Derivatives & Securities Transactions with Derivatives - - - - - Operations w/Derivatives & Securities - - - - - Valuation adjustments for Asset Coverage - - - - - Commercial Loans - - - - - Financial Intermediaries´ Loans - - - - - Consumer Loans 9 16 38 30 22 Payroll Loans - - - - - Personal Loans 9 16 38 29 22 Credit Card - - 0 1 0 Auto Loans - - - - - Mortgage Loans - - - - - Medium and Residential - - - - - Low- income housing - - - - - Loans acquired from INFONAVIT or FOVISSSTE - - - - - Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities´ Loans - - - - - Performing Loans, Stage 1 9 16 38 30 22 Commercial Loans - - - - - Financial Intermediaries´ Loans - - - - - Consumer Loans 0 1 6 6 5 Payroll Loans - - - - - Personal Loans 0 1 6 6 5 Credit Card - - - - - Auto Loans - - - - - Mortgage Loans - - - - - Medium and Residential - - - - - Low- income housing - - - - - Loans acquired from INFONAVIT or FOVISSSTE - - - - - Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities´ Loans - - - - - Performing Loans, Stage 2 0 1 6 6 5 Commercial NPL´s - - - - - Financial Intermediaries NPL´s - - - - - Consumer NPL´s - 0 3 11 9 Payroll NPL´s - - - - - Personal NPL´s - 0 3 11 9 Credit Card NPL´s - - - - - Auto NPL´s - - - - - Mortgage NPL´s - - - - - Medium and Residential - - - - - Low- income housing - - - - - Loans acquired from INFONAVIT or FOVISSSTE - - - - - Restruct. or improv. guaranteed by development banks or public trusts - - - - - Restruc. or improv. guaranteed by housing sub-account - - - - - Government Entities PDL´s - - - - - Non-Perfoming Loans, Stage 3 - 0 3 11 9 Loan Portfolio Valued at Fair Value - - - - - Deferred Items - - - - - Gross Loan Portfolio 9 17 46 47 36 Preventive Loan Loss Reserves 0 2 7 13 11 Net Loan Portfolio 9 15 39 33 25 Acquired Collection Rights (net) - - - - - Total Credit Portfolio 9 15 39 33 25 Benef. receivab. securization transactions - - - - - Sundry Debtors & Other Accs Rec, Net 20 22 29 35 40 Inventories - - - - - Foreclosed Assets, Net - - - - - Advanced Payments and Other Assets 70 6 3 83 88 Real Estate, Furniture & Equipment, Net 6 5 5 5 6 Rights of Use of Intangible Assets - - - - - Investment in Subsidiaries - - - - - Assets for Rights of Use of Property, Furn. & Eq. - - - - - Deferred Income Tax Assets 53 150 256 397 390 Intangibles 1,696 1,684 1,652 1,644 1,626 Rights of Use of Intangible Assets - - - - - Goodwill - - - - - TOTAL ASSETS 2,807 3,491 3,877 3,588 3,698 1Q24 2Q24 3Q24 4Q24 1Q25
Page 50
V. Financial Statements First Quarter 2025 50 Bineo -Statement of Financial Position (Million Pesos) LIABILITIES Demand Deposits 10 20 36 42 36 Time Deposits-Retail - - - - - Time Deposits-Money Market - - - - - Global Account of deposits without movements - - - - - Senior Unsecured Debt - - - - - Deposits 10 20 36 42 36 Due to Banks & Correspondents: Demand Loans - - - - - Short Term Loans - - - - - Long Term Loans - - - - - Due to Banks & Other Correspondents - - - - - Technical Reserves - - - - - Non-assigned Securities for Settlement - - - - - Creditor Balance in Repo Trans, Net - - - - - Secs to be received in Repo Trans, Net - - - - - Collateral sold or pledged as collateral: Repos (Credit Balance) - - - - - Securities' Loans - - - - - Transactions with Derivatives - - - - - Other sold collateral - - - - - Total Collateral sold - - - - - Derivatives For trading purposes - - - - - For hedging purposes - - - - - Total Derivatives - - - - - Valuation adjustments for financial liability coverage - - - - - Obligations in securitization transactions - - - - - Payable Accountsfor Reinsurance - - - - - Lease Liabilities - - - - - Creditors for settlement of transactions - - - - - Margin Accounts Payable - - - - - Creditors for collateral received in cash - - - - - Contributions payable 7 10 11 13 8 Suppliers - - - - - Related Party - - - - - Other Creditors & Accounts Payable 174 139 118 137 189 Other Payable Accounts 181 150 130 150 197 Contributions for future capital increases pending formalization by its governing body - - - - - Subordinated Non Convertible Debt - - - - - Income Tax Liabilities - - - - - Employee benefit liability 64 92 129 137 91 Deferred Credits 0 0 0 0 0 TOTAL LIABILITIES 255 262 295 330 324 EQUITY Paid-in Capital 1,679 1,679 3,129 3,129 4,179 Provision for future capital increase not formalized by its governing entity 1,000 1,900 1,050 1,050 400 Share Subscription Premiums - - - - 4 Finan. instr. that qualify as capital - - - - - Subscribed Capital 2,679 3,579 4,179 4,179 4,582 Capital Reserves 4 10 10 10 10 Retained Earnings 58 52 52 52 (930) Net Income (188) (410) (657) (981) (289) Comprehensive Income Valuation Adjustments for Fair Value through other (Formerly Securities Available for Sale) - - - - - Valuation Adjustment for Cash Flow Hedges - - - - - Income and expenses related to assets held for disposal - - - - - Defined remeasurements for employees benefits (1) (1) (1) 0 0 Cumulative translation adjustment - - - - - Res. for holding non-monetary assets - - - - - Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates - - - - - Participation in other comprehensive income of other entities - - - - - Earned Capital (127) (349) (596) (920) (1,209) Minority Interest - - - - - Total Equity 2,551 3,230 3,583 3,259 3,373 TOTAL LIABILITIES & EQUITY 2,807 3,491 3,877 3,588 3,698 2Q24 3Q24 4Q24 1Q251Q24
Page 51
V. Financial Statements First Quarter 2025 51 Bineo - Memorandum Accounts (Million Pesos) Investment Banking transactions for third parties, net - - - - - TOTAL ON BEHALF OF THIRD PARTIES - - - - - Endorsement Guarantees Granted - - - - - Loan Obligations - - 2 5 7 Trusts - - - - - Mandates - - - - - Properties in Trusts and Warrant - - - - - Properties in Custody or Management - - - - - Shares delivered in custody or as collateral - - - - - Collateral Received - - - - - Collateral Received or sold or delivered - - - - - Deposits of assets - - - - - Contingent assets & liabilites - - - - - Uncollected Accrued Interest from Non-Performing Loans - 0 0 0 0 Liabilities for active bonds (net) - - - - - Recovery guarantees for issued bonds - - - - - Complaints received pending verification - - - - - Contingent claims - - - - - Claims paid - - - - - Claims cancelled - - - - - Recovered claims - - - - - Miscellaneous accounts 3,286 3,286 3,286 3,289 6,926 TOTAL PROPRIETARY 3,286 3,286 3,288 3,294 6,934 1Q24 2Q24 3Q24 4Q24 1Q25 Operation activities Net income before taxes (282) Adjustments for items associated with investing activities 40 Amortization of intangible assets 40 Changes in operating items (4) Change in loan portfolio (net) 9 Change in other accounts receivable (net) (6) Change in other operating assets (net) (5) Change in traditional deposits (6) Change in assets/liabilities for employee benefits (47) Change in other accounts payable (1) Change in other provisions 52 Net cash flows from operating activities (246) Investment activities Payments for the acquisition of property, furniture and equipment (1) Payments for the acquisition of intangible assets (21) Net cash flows from investing activities (22) Financial activities Contribution fo future capital increases formalized in the Shareholders' Meeting 400 Net cash flows from financing activities 400 Net increase or decrease in cash and cash equivalents 132 Cash and cash equivalents at the beginning of the period 1,391 Cash and cash equivalents at the end of the period 1,523 BINEO - STATEMENT OF CASH FLOWS JANUARY 1st, 2025 – MARCH 31st, 2025 (Million Pesos)
Page 52
V. Financial Statements First Quarter 2025 52 Balance as of December 31st, 2024 3,129 1,050 0 10 (930) 0 3,259 CHANGES STEMMING FROM STOCKHOLDERS' DECISIONS Plan based on shares payable in equity instruments 4 4 Capital increases formalized by the Ordinary General Meeting of Shareholders on January 12th, 2025 1,050 (1,050) 0 Contribution for future capital increases formalized by the Ordinary General Meeting of Shareholders on February 25th, 2025 400 400 Total 1,050 (650) 4 0 0 0 404 COMPREHENSIVE INCOME Net Income (289) (289) Total 0 0 0 0 (289) 0 (289) Balance as of March 31st, 2025 4,179 400 4 10 (1,219) 0 3,374 Prima en venta de acciones Capital Reserves Total Stockholders' Equity Remeasurement on Defined Employee Benefit Fixed Paid-in Capital Contribution fo future capital increases formalized by its governing body CONTRIBUTED CAPITAL EARNED CAPITALRetained Earnings (Million Pesos) BINEO - STATEMENT OF CHANGES IN EQUITY JANUARY 1st, 2025 – MARCH 31st, 2025
Page 53
V. Financial Statements First Quarter 2025 53 Seguros Banorte Income Statement- Seguros Banorte (Million Pesos) Interest Income 932 937 908 984 1,003 Interest Expense 2 2 2 2 2 Monetary Positions Net Interest Income - - - - - Net Interest Income (NII) 931 935 906 983 1,002 Preventive Provisions for Loan Losses (0) 0 (0) 0 (0) Net Interest Income 931 935 906 983 1,002 Fees Charged on Services - - - - - Fees Paid on Services - - - - - Premium Revenue (Net) 15,069 8,497 7,307 8,891 18,311 Net increase in technical reserves 6,708 2,652 1,655 2,353 9,658 Net Cost for Insurance and Bond Operations 1,619 878 951 1,521 1,993 Net Cost of Claims and Other Obligations 4,345 4,848 4,883 4,797 4,635 Trading Income 438 632 940 620 937 Total Other Operating Income (Expenses) 149 236 107 149 151 Total Non-Interest Income 2,983 987 864 988 3,113 Total Operating Income 3,914 1,922 1,770 1,971 4,115 Personnel 143 154 142 145 128 Professional Fees 67 86 70 105 60 Administrative and Promotional 74 50 39 48 40 Rents, Depreciation & Amortization 49 41 47 48 49 Various Taxes 39 42 31 30 42 Employee Profit Sharing (PTU) 14 14 14 15 14 Other expenses 225 119 100 86 210 Total Non-Interest Expense 611 507 443 477 543 Operating Income 3,303 1,415 1,327 1,494 3,571 Subsidiaries' Net Income 320 300 389 315 359 Pre-Tax Income 3,623 1,715 1,716 1,809 3,930 Taxes 1,012 315 302 319 960 Net Income from Continuos Operations 2,611 1,399 1,414 1,489 2,970 Discontinued Operations - - - - - Net income from continuing operations 2,611 1,399 1,414 1,489 2,970 Minority Interest 8 7 8 6 9 Net Income 2,602 1,392 1,405 1,483 2,961 1Q24 2Q24 3Q24 4Q24 1Q25
Page 54
V. Financial Statements First Quarter 2025 54 Seguros Banorte - Balance Sheet (Million Pesos) ASSETS Cash and Equivalents 1,487 329 136 85 237 Margin Accounts - - - - - Negotiable Instruments 39,253 42,735 46,873 52,628 56,839 Securities Available for Sale 6,741 7,157 7,088 6,282 7,493 Securities Held to Maturity (0) (0) (0) (0) (0) Investment in Securities 45,994 49,892 53,961 58,910 64,332 Estimate of Expected Credit Losses for Investments - - - - - Debtor Balance in Repo Trans, net 8,702 6,281 6,892 7,822 9,862 Securities Lending - - - - - For trading purposes - - - - - For hedging purposes - - - - - Operations w/Derivatives & Securities Transactions with Derivatives - - - - - Operations w/Derivatives & Securities 8,702 6,281 6,892 7,822 9,862 Valuation adjustments for Asset Coverage - - - - - Insurance and Bail Bond portfolio 38 40 39 43 40 Deferred Items (BAP) - - - - - Loan Loss-reserve for Insurance and Bail Bond Risks 38 40 39 43 40 Net Insurance and Bail Bond Loan Portfolio 0 0 0 0 0 Loan Portafolio, net 38 40 39 43 40 Net from Reserves Loan Portfolio 38 40 39 43 40 Acquired Collection Rights (net) - - - - - Total Credit Portfolio 38 40 39 43 40 Account Receivables from Insurance and Annuities 14,295 11,523 8,460 5,551 16,556 Amounts recoverable by Reinsurance and Counter-guarantee 6,882 6,798 6,246 5,661 9,070 Account Receivables from Reinsurance - - - - - Benef. receivab. securization transactions - - - - - Sundry Debtors & Other Accs Rec, Net 364 248 323 456 675 Inventories - - - - - Foreclosed Assets, Net - - - - - Advance Payments and Other Assets 965 1,455 2,028 2,524 1,055 Real Estate, Furniture & Equipment, Net 345 336 331 295 285 Assets for Rights of Use of Property, furniture and equipment 97 107 87 72 71 Investment in Subsidiaries 12,916 13,215 13,604 13,911 13,009 Assets for Rights of Use of Property, Furn.& Eq. - - - - - Deferred Income Tax Assets 669 832 797 794 794 Intangibles 1,555 1,594 1,622 1,643 1,668 Rights of Use of Intangible Assets - - - - - Goodwill - - - - - TOTAL ASSETS 94,310 92,650 94,526 97,766 117,653 4Q24 1Q251Q24 2Q24 3Q24
Page 55
V. Financial Statements First Quarter 2025 55 Seguros Banorte - Balance Sheet (Million Pesos) LIABILITIES Technical Reserves 56,196 58,331 59,502 60,870 74,555 Non-assigned Securities for Settlement - - - - - Total Derivatives - - - - - Valuation adjustments for financial liability coverage - - - - - Obligations in securitization transactions - - - - - Payable Accountsfor Reinsurance 3,979 3,709 3,089 3,018 5,712 Lease Liabilities 102 111 91 75 74 Creditors for settlement of transactions - - - - - Margin Accounts Payable - - - - - Creditors for collateral received in cash - - - - - Contributions payable 1,210 1,054 883 1,179 1,520 Suppliers - - - - - Related Party - - - - - Other Creditors & Accounts Payable 3,903 3,691 3,505 3,394 4,705 Other Payable Accounts 5,113 4,745 4,388 4,572 6,224 Contributions for future capital increases pending formalization by its governing body - - - - - Subordinated Non Convertible Debt - - - - - Income Tax Liabilities 1,332 1,786 2,059 2,371 1,262 Employee benefit liability 185 187 191 206 216 Deferred Credits 51 55 58 57 60 TOTAL LIABILITIES 66,957 68,924 69,378 71,170 88,104 EQUITY Paid-in Capital 13,928 13,928 13,928 13,928 13,928 Provision for future capital increase not formalized by its governing entity 7 7 7 7 - Share Subscription Premiums - - - - - Finan. instr. that qualify as capital - - - - - Subscribed Capital 13,934 13,934 13,934 13,934 13,928 Capital Reserves 4,714 5,278 5,278 5,278 5,278 Retained Earnings 5,855 291 291 280 7,170 Net Income 2,602 3,995 5,400 6,883 2,961 Comprehensive Income: Valuation Adjustments for Fair Value through other (Formerly Securities Available for Sale) (377) (456) (335) (494) (329) Valuation Adjustment for Cash Flow Hedges - - - - - Income and expenses related to assets held for disposal - - - - - Defined remeasurements for employees benefits (14) (14) (14) (20) (19) Cumulative translation adjustment 0 0 0 - - Res. for holding non-monetary assets - - - - - Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates 325 401 289 430 247 Participation in other comprehensive income of other entities - - - - - Earned Capital 13,105 9,495 10,909 12,356 15,307 Minority Interest 313 296 305 305 314 Total Equity 27,353 23,726 25,148 26,596 29,548 TOTAL LIABILITIES & EQUITY 94,310 92,650 94,526 97,766 117,653 4Q24 1Q251Q24 2Q24 3Q24
Page 56
V. Financial Statements First Quarter 2025 56 Information by Segments GFNorte - Income Statement as of March 31st, 2025 (Million Pesos) Holding Banorte Banorte Ahorro y Previsión Arrendadora y Factor Banorte Almacenadora Banorte Casa de Bolsa Banorte Interest Income 360 96,160 6,420 1,269 28 7,196 Interest expense - 67,635 2 892 - 6,843 Financial Margin 360 28,525 6,418 377 28 354 Allowance for loan losses 0 5,339 10 92 - - Risk adjusted net interest income 360 23,186 6,409 284 28 354 Commissions and fees charged on services - 10,634 - 3 - 406 Commissions and fees paid on services - 5,338 - 18 0 71 Premium revenue (net) - - 21,614 - - - Increase in technical reserves (net) - - 13,479 - - - Cost of acquisition for insurance and bail bonds operations (net) - - 1,996 - - - Cost of damages, claims, and other obligations - - 8,382 - - - Trading income - 878 935 (6) 1 295 Total other operating income (expense) - (1,083) 68 228 33 1 Administrative and promotional Expenses 30 12,625 652 289 24 525 Operating income 330 15,651 4,518 200 38 459 Subsidiaries' net income 15,014 47 359 1 - 0 Pre-tax income 15,344 15,697 4,876 202 38 460 Taxes 56 4,647 1,225 72 12 123 Net income from continous operations 15,288 11,051 3,652 130 26 337 NET INCOME 15,288 11,227 3,645 130 26 337 - - - - - - Minority interest - (176) 7 - 0 - Other comprehensive income - - - - - - Financial instruments to collect or sell valuation 2,169 1,960 167 - - 80 Cash flow hedges valuation 1,670 1,700 - - - - Remeasurement on defined employee benefits 35 35 1 (0) (0) 0 Remeasurement by result in the valuation of the unexpired risk reserve due to variation in discount rates (183) - (183) - - - Cumulative foreign currency translation adjustment (62) (55) - - - (8) Result from holding non-monetary assets - - - - - - Participation in other comprehensive income of other entities - - - - - - Other comprehensive income 3,629 3,639 (16) (0) (0) 72 COMPREHENSIVE INCOME 18,917 14,690 3,636 130 26 409 GFNorte - Income Statement as of March 31st, 2025 (Million Pesos) Operadora de Fondos Banorte Banco Bineo Total Cargos Eliminaciones Intercompañías Créditos Eliminaciones Intercompañías Final Balance Interest Income 3 37 111,474 2,391 - 109,083 Interest expense - 0 75,372 - 2,368 73,004 Financial Margin 3 37 36,102 2,391 2,368 36,079 Allowance for loan losses - 8 5,449 - - 5,449 Risk adjusted net interest income 3 29 30,652 2,391 2,368 30,630 Commissions and fees charged on services 840 0 11,882 1,555 - 10,328 Commissions and fees paid on services 590 3 6,020 - 586 5,434 Premium revenue (net) - - 21,614 290 - 21,325 Increase in technical reserves (net) - - 13,479 - - 13,479 Cost of acquisition for insurance and bail bonds operations (net) - - 1,996 - 990 1,006 Cost of damages, claims, and other obligations - - 8,382 - 15 8,367 Trading income 12 0 2,115 - - 2,115 Total other operating income (expense) 0 1 (754) 249 20 (983) Administrative and promotional Expenses 81 309 14,535 25 530 14,031 Operating income 184 (282) 21,098 4,509 4,509 21,098 Subsidiaries' net income 1 - 15,422 15,014 - 408 Pre-tax income 186 (282) 36,520 19,523 4,509 21,506 Taxes 52 7 6,192 - - 6,192 Net income from continous operations 134 (289) 30,328 19,523 4,509 15,314 NET INCOME 134 (289) 30,158 19,523 4,704 15,288 - - - - - - Minority interest - - (170) - 195 26 Other comprehensive income - - - - - - Financial instruments to collect or sell valuation - - 4,375 (874) (3,035) 2,215 Cash flow hedges valuation - - 3,370 2,427 728 1,670 Remeasurement on defined employee benefits (0) (0) 71 36 - 35 Remeasurement by result in the valuation of the unexpired risk reserve due to variation in discount rates - - (366) (183) - (183) Cumulative foreign currency translation adjustment - - (124) - 63 (62) Result from holding non-monetary assets - - - - - - Participation in other comprehensive income of other entities - - - - - - Other comprehensive income (0) (0) 7,325 1,406 (2,244) 3,675 COMPREHENSIVE INCOME 134 (289) 37,314 20,928 2,655 18,989
Page 57
V. Financial Statements First Quarter 2025 57 GFNorte - Balance Sheet as of March 31st, 2025 (Million Pesos) Cash and cash equivalents 14,032 136,348 467 86 2 3,534 Margin accounts (derivate financial instruments) - 3,569 - - - - Investment in securities 0 0 0 0 0 0 Trading financial instruments - 130,465 61,769 - - 216,795 Financial instruments to collect or sell - 148,979 7,519 - - 31,115 Financial instruments to collect principal and interest (securities) 2,010 115,957 267,963 - - 25 Estimate of expected credit losses for investments (securities) - (74) (0) - - (0) Debtor balance in repo trans (net) - 78,077 12,599 - - 105 Securities lending - - - - - - Derivative financial instruments - - - - - - Transactions with derivatives for trading purposes - 15,996 - - - 449 Transactions with derivatives for hedging purposes 0 2,352 - - - - Asset hedges valuation adjustments - - - - - - Loan portfolio with credit risk stage 1 - - - - - - Commercial loans - - - - - - Commercial - 438,001 - 44,567 - - Financial entities - 55,312 - 1,198 - - Government - 176,452 - 1,402 - - Consumer loans - 207,610 - 0 - - Mortgage - - - - - - Medium and residential - 271,519 - - - - Low-income housing - 1 - - - - Loans acquired from INFONAVIT or FOVISSSTE - 1,323 - - - - Remodeling or improvement with guarantee of the housing subaccount - - - - - - Loan portfolio with credit risk stage 1 - 1,150,220 - 47,168 - - Loan portfolio with credit risk stage 2 - - - - - - Commercial loans - - - - - - Commercial - 2,241 - 113 - - Financial entities - 1 - - - - Government - - - 312 - - Consumer loans - 3,340 - - - - Mortgage - - - - - - Medium and residential - 3,629 - - - - Low-income housing - - - - - - Loans acquired from INFONAVIT or FOVISSSTE - 78 - - - - Remodeling or improvement with guarantee of the housing subaccount - - - - - - Loan portfolio with credit risk stage 2 - 9,289 - 424 - - Loan portfolio with credit risk stage 3 - - - - - - Commercial loans - - - - - - Commercial - 3,552 - 522 - - Financial entities - 132 - 4 - - Government - - - 4 - - Consumer loans - 4,737 - - - - Mortgage - - - - - - Medium and residential - 1,786 - - - - Low-income housing - - - - - - Loans acquired from INFONAVIT or FOVISSSTE - 356 - - - - Remodeling or improvement with guarantee of the housing subaccount - - - - - - Loan portfolio with credit risk stage 3 - 10,563 - 530 - - Loan portfolio - 1,170,071 - 48,122 - - (+/-) Deffered items - 3,267 - (50) - - (-) Minus - - - - - - Allowance for loan losses - (20,067) - (458) - - Loan portfolio (net) - 1,153,271 - 47,614 - - Loan portfolio from insurance and bail bonds - - 3,873 - - - (+/-) Deffered items - - - - - - (-) Minus - - - - - - Loan loss-reserve for insurance and bail bond risks - - (321) - - - Total insurance and bail bond loan portfolio (net) - - 3,552 - - - Acquired collection rights (net) - 835 - - - - Loan portfolio (net) - 1,154,106 3,552 47,614 - - Benef. receivab. securization transactions - (0) - - - - Debtors of insurance and surety companies - - 16,821 - - - Amounts recoverable by reinsurance and counter-guarantee (net) - - 9,070 - - - Other accounts receivable (net) 0 66,659 868 2,179 543 12,643 Inventories - - - - 1,504 - Foreclosed assets (net) - 4,568 - 44 23 - Advanced payments and other assets (net) 0 5,345 1,427 4,603 30 313 Property, furniture, and equipment (net) - 26,887 290 4,482 53 44 Assets for rights of use of property, furniture and equipment (net) - 4,032 75 - - - Investment in subsidiaries 225,434 1,468 13,009 34 - 4 Deferred income tax assets 27 1,435 618 404 9 - Intagible assets (net) 135 10,863 1,673 4 0 167 Goodwill 25,329 2,706 - - - - TOTAL ASSETS 266,966 1,909,740 397,719 59,449 2,164 265,194 ASSETS Holding Banorte Banorte Ahorro y Previsión Arrendadora y Factor Banorte Almacenadora Banorte Casa de Bolsa Banorte
Page 58
V. Financial Statements First Quarter 2025 58 GFNorte - Balance Sheet as of March 31st, 2025 (Million Pesos) Cash and cash equivalents 31 1,523 156,022 8 19,125 136,906 Margin accounts (derivate financial instruments) - - 3,569 - - 3,569 Investment in securities 0 0 0 0 0 0 Trading financial instruments 604 - 409,632 - - 409,632 Financial instruments to collect or sell - - 187,613 - - 187,613 Financial instruments to collect principal and interest (securities) - - 385,956 - 2,357 383,598 Estimate of expected credit losses for investments (securities) - - (74) - - (74) Debtor balance in repo trans (net) - - 90,781 - 86,083 4,699 Securities lending - - - - - - Derivative financial instruments - - - - - - Transactions with derivatives for trading purposes - - 16,445 - 434 16,011 Transactions with derivatives for hedging purposes - - 2,352 - - 2,352 Asset hedges valuation adjustments - - - - - - Loan portfolio with credit risk stage 1 - - - - - - Commercial loans - - - - - - Commercial - - 482,568 - - 482,568 Financial entities - - 56,510 - 19,015 37,496 Government - - 177,855 - - 177,855 Consumer loans - 22 207,633 - - 207,633 Mortgage - - - - - - Medium and residential - - 271,519 - - 271,519 Low-income housing - - 1 - - 1 Loans acquired from INFONAVIT or FOVISSSTE - - 1,323 - - 1,323 Remodeling or improvement with guarantee of the housing subaccount - - - - - - Loan portfolio with credit risk stage 1 - 22 1,197,409 - 19,015 1,178,394 Loan portfolio with credit risk stage 2 - - - - - - Commercial loans - - - - - - Commercial - - 2,354 - - 2,354 Financial entities - - 1 - - 1 Government - - 312 - - 312 Consumer loans - 5 3,345 - - 3,345 Mortgage - - - - - - Medium and residential - - 3,629 - - 3,629 Low-income housing - - - - - - Loans acquired from INFONAVIT or FOVISSSTE - - 78 - - 78 Remodeling or improvement with guarantee of the housing subaccount - - - - - - Loan portfolio with credit risk stage 2 - 5 9,718 - - 9,718 Loan portfolio with credit risk stage 3 - - - - - - Commercial loans - - - - - - Commercial - - 4,074 - - 4,074 Financial entities - - 136 - - 136 Government - - 4 - - 4 Consumer loans - 9 4,746 - - 4,746 Mortgage - - - - - - Medium and residential - - 1,786 - - 1,786 Low-income housing - - - - - - Loans acquired from INFONAVIT or FOVISSSTE - - 356 - - 356 Remodeling or improvement with guarantee of the housing subaccount - - - - - - Loan portfolio with credit risk stage 3 - 9 11,102 - - 11,102 Loan portfolio - 36 1,218,230 - 19,015 1,199,215 (+/-) Deffered items - - 3,217 - - 3,217 (-) Minus - - - - - - Allowance for loan losses - (11) (20,537) - - (20,537) Loan portfolio (net) - 25 1,200,910 - 19,015 1,181,895 Loan portfolio from insurance and bail bonds - - 3,873 - - 3,873 (+/-) Deffered items - - - - - - (-) Minus - - - - - - Loan loss-reserve for insurance and bail bond risks - - (321) - - (321) Total insurance and bail bond loan portfolio (net) - - 3,552 - - 3,552 Acquired collection rights (net) - - 835 - - 835 Loan portfolio (net) - 25 1,205,297 - 19,015 1,186,283 Benef. receivab. securization transactions - - (0) - - (0) Debtors of insurance and surety companies - - 16,821 - - 16,821 Amounts recoverable by reinsurance and counter-guarantee (net) - - 9,070 - - 9,070 Other accounts receivable (net) 358 40 83,289 - 931 82,358 Inventories - - 1,504 - - 1,504 Foreclosed assets (net) - - 4,635 - - 4,635 Advanced payments and other assets (net) 9 88 11,817 - - 11,817 Property, furniture, and equipment (net) 0 6 31,762 203 44 31,921 Assets for rights of use of property, furniture and equipment (net) - - 4,107 - - 4,107 Investment in subsidiaries 148 - 240,096 390 225,825 14,662 Deferred income tax assets - 390 2,883 - 163 2,720 Intagible assets (net) 54 1,626 14,522 - - 14,522 Goodwill - - 28,034 - - 28,034 TOTAL ASSETS 1,204 3,698 2,906,134 601 353,976 2,552,759 ASSETS Operadora de Fondos Banorte Final BalanceCharges Intercompany Credits Intercompany EliminationsTotalBanco Bineo
Page 59
V. Financial Statements First Quarter 2025 59 GFNorte - Balance Sheet as of March 31st, 2025 (Million Pesos) Deposits - - - - - - Demand deposits - 791,335 - - - - TIme deposits - - - - - - Time deposits-retail - 358,005 - - - - Time deposits-money market - 6,121 - - - - Senior unsecured debt - 37,236 - - - - Global account of deposits without movements - 4,205 - - - - Due to banks & correspondents - - - - - - Demand loans - 1,511 - - - - Short-term loans - 3,551 - 28,455 1,682 - Long- term loans - 7,599 - 13,303 - - Non-assigned securities for settlement - - - - - - Technical reserves - - 339,323 - - - Creditor balance in repo transactions (net) - 268,980 - - - 247,247 Securities to be received in repo transactions (net) - - - - - - Collateral sold or pledged as collateral - - - - - - Repos - 78,077 - - - 105 Securities' loans - - - - - - Transactions with derivatives - - - - - - Other sold collateral - - - - - - Derivative financial instruments - - - - - - For trading purposes - 14,794 - - - 335 For hedging purposes - 1,055 - - - - Valuation adjustments for financial liability coverage - - - - - - Payable accounts for reinsuarance and counter-guarantee entities (net) - - 5,712 - - - Obligations in securitization transactions - - - - - - Lease liabilities - 4,188 78 - - - Other payable accounts - - - - - - Creditors of liquidation operations - 32,346 - - - 11,985 Margin accounts payable - - - - - - Creditors from collaterals received in cash - 7,185 - - - - Contributions payable 0 1,897 1,539 13 2 107 Other creditors and accounts payable 0 30,210 9,041 3,180 27 224 Financial instruments that qualify as a liability - - - - - - Subordinated non- convertible debt - 85,199 - - - - Income tax liabilities 20 3,497 1,260 100 12 248 Employee benefit liability 0 10,757 235 123 10 490 Deferred credits and advanced charges - 1,061 60 122 - 1 TOTAL LIABILITIES 21 1,748,807 357,249 45,297 1,733 260,741 Equity - - - - - - Paid-in capital - - - - - - Common stock 14,726 18,795 15,776 14,294 87 1,985 Additional paid- in capital 47,823 5,996 5,594 23 - 87 Provision for future capital increase not formalized by its governing entity - - - - - - Financial instruments that qualify as equity - - - - - - Earned capital - - - - - - Capital reserves 22,713 18,959 2,364 896 70 397 Cumulative results - - - - - - Retained earnings 168,785 112,309 13,043 (1,194) 247 1,492 Net income 15,288 11,227 3,645 130 26 337 Other comprehensive income - - - - - - Valuation of financial instruments to collect or sell (1,071) (552) (463) - - 44 Cash flow hedges valuation 804 816 - - - - Defined remeasurements for employees benefits (2,770) (2,814) (27) 2 1 (5) Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates 245 - 246 - - - Cumulative foreign currency translation adjustment 403 293 - - - 116 Result from holding non-monetary assets - - - - - - Participation in OCI of other entities - - - - - - Majority interest 266,945 165,028 40,177 14,152 431 4,452 Minority Interest - (4,095) 293 0 0 - TOTAL EQUITY 266,945 160,933 40,470 14,152 431 4,452 - - - - - - TOTAL LIABILITIES AND EQUITY 266,966 1,909,740 397,719 59,449 2,164 265,194 Casa de Bolsa Banorte Almacenadora BanorteLIABILITIES & EQUITY Holding Banorte Banorte Ahorro y Previsión Arrendadora y Factor Banorte
Page 60
V. Financial Statements First Quarter 2025 60 GFNorte - Balance Sheet as of March 31st, 2025 (Million Pesos) Deposits - - - - - - Demand deposits - 36 791,371 17,574 - 773,797 TIme deposits - - - - - - Time deposits-retail - - 358,005 40 - 357,965 Time deposits-money market - - 6,121 - - 6,121 Senior unsecured debt - - 37,236 2,010 - 35,226 Global account of deposits without movements - - 4,205 - - 4,205 Due to banks & correspondents - - - - - - Demand loans - - 1,511 1,511 - - Short-term loans - - 33,688 9,834 - 23,854 Long- term loans - - 20,902 9,180 - 11,722 Non-assigned securities for settlement - - - - - - Technical reserves - - 339,323 - 6 339,329 Creditor balance in repo transactions (net) - - 516,227 86,083 - 430,144 Securities to be received in repo transactions (net) - - - - - - Collateral sold or pledged as collateral - - - - - - Repos - - 78,182 - - 78,182 Securities' loans - - - - - - Transactions with derivatives - - - - - - Other sold collateral - - - - - - Derivative financial instruments - - - - - - For trading purposes - - 15,128 434 - 14,694 For hedging purposes - - 1,055 - - 1,055 Valuation adjustments for financial liability coverage - - - - - - Payable accounts for reinsuarance and counter-guarantee entities (net) - - 5,712 - - 5,712 Obligations in securitization transactions - - - - - - Lease liabilities - - 4,266 - - 4,266 Other payable accounts - - - - - - Creditors of liquidation operations - - 44,331 134 - 44,197 Margin accounts payable - - - - - - Creditors from collaterals received in cash - - 7,185 - - 7,185 Contributions payable 27 8 3,593 - - 3,593 Other creditors and accounts payable 269 189 43,141 949 2 42,194 Financial instruments that qualify as a liability - - - - - - Subordinated non- convertible debt - - 85,199 - - 85,199 Income tax liabilities 4 - 5,142 163 - 4,979 Employee benefit liability 55 91 11,760 - - 11,760 Deferred credits and advanced charges - 0 1,244 - - 1,244 TOTAL LIABILITIES 356 324 2,414,528 127,912 8 2,286,624 Equity - - - - - - Paid-in capital - - - - - - Common stock 170 4,179 70,012 55,287 2 14,726 Additional paid- in capital 7 4 59,533 11,881 326 47,978 Provision for future capital increase not formalized by its governing entity - 400 400 400 - - Financial instruments that qualify as equity - - - - - - Earned capital - - - - - - Capital reserves 34 10 45,443 22,731 - 22,713 Cumulative results - - - - - - Retained earnings 502 (930) 294,254 133,765 8,251 168,740 Net income 134 (289) 30,497 15,209 - 15,288 Other comprehensive income - - - - - - Valuation of financial instruments to collect or sell - - (2,043) 216 1,188 (1,071) Cash flow hedges valuation - - 1,620 (349) (1,166) 804 Defined remeasurements for employees benefits 2 0 (5,613) - 2,843 (2,770) Remeasurement by results in valuation of risk reserve in progress due to variation in discount rates - - 491 246 - 245 Cumulative foreign currency translation adjustment - - 813 409 - 403 Result from holding non-monetary assets - - - - - - Participation in OCI of other entities - - - - - - Majority interest 848 3,373 495,408 239,795 11,444 267,056 Minority Interest - - (3,802) - 2,881 (921) TOTAL EQUITY 848 3,373 491,606 239,795 14,325 266,135 - - - - - - TOTAL LIABILITIES AND EQUITY 1,204 3,698 2,906,134 367,708 14,333 2,552,759 Final BalanceLIABILITIES & EQUITY Operadora de Fondos Banorte Banco Bineo Total Cargos Eliminaciones Intercompañías Créditos Eliminaciones
Page 61
VI. Appendix First Quarter 2025 61 VI. Appendix Accounting & Regulatory Changes Numbers in this section are stated in million pesos. Early termination of support programs for mortgage loan debtors On June 30 th, 2010, the Federal Government, through the SHCP (Tax and Credit Institutions Authority), signed an agreement to early terminate the support programs for the mortgage loan debtors. Therefore, as of January 1, 2011, the Holding entity absorbed the discount that was early applied to the mortgage loan debtors enrolled in the program. The agreement established a set of payment obligations by the Federal Government payable in 5 equal annual payments ending on June 1, 2015; day in which the bank received Ps 29 million including a monthly interest from the day after the cutoff date until the ending month before the payment date. As of March 31st, 2025, the remaining balance of CETES ESPECIALES which have not been repurchased by the Federal Government, totaled Ps 481 million, with maturities in 2027. Changes in the Local Liquidity Regulations for Banking Institutions Aligned with the regulatory changes implemented on March 1st, 2022, the declaration of the institutions that consolidate in the calculation of the LCR and the NSFR can be found in the following link. (available only in Spanish). Intraday Liquidity Form As of January 31st, 2025, the new Intraday Liquidity Form (LID) came into effect. The objective of the new form is to provide financial institutions and regulators with monitoring tools that offer higher knowledge of intraday liquidity management by financial institutions, at the time that it provides and strengthens the supervision and management of intraday liquidity risk by implementing tools from the Basel Committee for the supervision of such risk. Starting on June 2nd, 2025, the report will be sent on a daily basis. Currently, no regulatory limits apply to this form. Total Loss-Absorbing Capacity As a Locally Systemically Important Entity, Banorte is subject to the Total Loss -Absorbing Capacity supplement , implemented in the regulation during 2021, and which has been coming into effect gradually since December 2022 by adding 1.625% every year to the regulatory minimum, until reaching a total of 6.50% on December 2025. Such a capital supplement will set Banorte’s regulatory minimum for the Net Capital to 17.90% from 11.40%. Currently, Banorte is fully compliant with regulatory minimums. Transition of the Equilibrium Interbank Interest Rate The Mexican Central Bank has instructed that, as of January 2 nd, 2025, the 28 -day Equilibrium Interbank Interest Rate cannot be used for new contracts; the prohibition for the 91-day and 182-day rates came into effect on January 2nd, 2024. Banorte initiated a project in 2022 aiming to prepare the bank for this transition in favor of the Funding TIIE Rate. The project was successfully completed in November 2024, ensuring that Banorte fully complies with regulatory requirements.
Page 62
VI. Appendix First Quarter 2025 62 Notes to Financial Statements Trading Financial Instruments Book Value Interest Unrealized Gain (Loss) Market Value Government Securities 330,062 4,195 942 335,199 Unrestricted 18,944 458 267 19,670 BONDES F 7,164 21 4 7,189 BONDES M (5,063) 4 6 (5,053) BPA 212 5 0 217 BREMS - - - - Government Securities 31 0 1 32 UDI Securities 498 5 20 523 CETES 15,310 407 241 15,959 CETES (Special) - - - - Government Eurobonds 768 8 (20) 756 Udibonds (91) 7 15 (69) Treasury Bills 50 0 (0) 50 Treasury Notes 66 0 1 67 Restricted 311,118 3,737 674 315,529 BONDES D 14,407 54 11 14,472 BONDES F 48,993 108 36 49,138 BONDES M 11,991 142 174 12,307 BPA 228,757 3,427 449 232,634 Government Securities 1,595 3 (0) 1,597 UDI Securities 0 0 0 0 CETES 4,725 - 6 4,731 Government Eurobonds - - - - Udibonds 650 2 (2) 650 Banking Securities 39,424 109 6 39,539 Unrestricted 9,198 1 1 9,199 Bank Acceptances 6 - - 6 Development Bank Securities (30) 0 0 (30) Bank Securities 13 0 0 13 Deposit Certificates 189 - - 189 Other Banking Securities 522 1 0 524 Promissory Notes 8,497 0 0 8,497 Restricted 30,226 108 5 30,340 Development Bank Securities 9,014 40 3 9,057 Bank Securities 7,411 22 1 7,433 Deposit Certificates 12,290 39 0 12,329 Other Banking Securities 1,511 8 1 1,520 Private Securities 541 11 (1) 551 Unrestricted 523 11 (1) 533 Stock Certificates BORHIS - - - - Corporate Stock Certificates 447 10 0 457 Municipal Stock Certificates - - - - Private Eurobonds 76 1 (1) 76 Infrastructure and Real Estate Trusts 0 - 0 0 Other Banking Securities - - - - Restricted 18 - 0 18 Corporate Stock Certificates - - - - Municipal Stock Certificates - - - - Private Eurobonds 18 - 0 18 Equity Financial Instruments 30,791 - 3,553 34,344 Unrestricted 30,373 - 3,551 33,924 Shares 1,832 - 1,166 2,998 Investment Company Shares 28,541 - 2,386 30,926 Restricted 418 - 1 420 Shares 418 - 1 420 Reasonable Value Adjustment Ixe Bank Acq - - - - Total 400,818 4,315 4,500 409,632 INVESTMENTS IN FINANCIAL INSTRUMENTS AND VALUATION EFFECTS 1Q25 (Million Pesos)
Page 63
VI. Appendix First Quarter 2025 63 Instruments to Collect or Sell Book Value Interest Unrealized Gain (Loss) Market Value Government Securities 140,278 2,485 (277) 142,486 Unrestricted 52,382 372 86 52,840 BONDES F - - - - BONDES M 9,757 54 248 10,059 BPA - - - - BREMS 7,778 37 - 7,815 Government Securities 739 7 (96) 651 UDI Securities 102 4 193 299 CETES 5,679 - 0 5,679 CETES (Special) - - - - Government Eurobonds 16,385 193 (438) 16,139 Udibonds 11,942 78 178 12,198 Treasury Bills - - - - Treasury Notes - - - - Restricted 87,896 2,113 (363) 89,646 BONDES D 1,000 3 0 1,003 BONDES F - - - - BONDES M 10,713 239 229 11,181 BPA 46,322 1,666 77 48,065 Government Securities 226 2 (3) 224 UDI Securities - - - - CETES - - - - Government Eurobonds 29,185 197 (651) 28,731 Udibonds 450 6 (14) 442 Banking Securities 27,510 231 (71) 27,670 Unrestricted 16,522 203 (78) 16,647 Bank Acceptances - - - - Development Bank Securities 4,210 65 (138) 4,137 Bank Securities 3,466 53 19 3,538 Deposit Certificates 2,640 16 (11) 2,645 Other Banking Securities 3,854 69 52 3,974 Promissory Notes 2,353 (0) (0) 2,353 Restricted 10,988 27 7 11,022 Development Bank Securities 2,198 2 0 2,201 Bank Securities 8,790 25 6 8,821 Deposit Certificates - - - - Other Banking Securities - - - - Private Securities 18,086 178 (806) 17,457 Unrestricted 13,813 115 (772) 13,156 Stock Certificates BORHIS 77 - (77) (0) Corporate Stock Certificates 10,512 53 (680) 9,885 Municipal Stock Certificates 843 8 51 902 Private Eurobonds 2,381 54 (66) 2,369 Infrastructure and Real Estate Trusts - - - - Other Banking Securities - - - - Restricted 4,273 63 (34) 4,301 Corporate Stock Certificates 200 1 (0) 201 Municipal Stock Certificates 2,513 6 0 2,519 Private Eurobonds 1,560 56 (34) 1,582 Equity Financial Instruments - - - - Unrestricted - - - - Shares - - - - Investment Company Shares - - - - Restricted - - - - Shares - - - - Reasonable Value Adjustment Ixe Bank Acq - - - - Total 185,873 2,894 (1,154) 187,613 INVESTMENTS IN FINANCIAL INSTRUMENTS AND VALUATION EFFECTS 1Q25 (Million Pesos)
Page 64
VI. Appendix First Quarter 2025 64 Financial instruments to Collect Principal and Interest (securities) (net) Book Value Interest Unrealized Gain (Loss) Market Value Government Securities 368,303 4,845 - 373,147 Unrestricted 304,530 4,021 - 308,551 BONDES F - - - - BONDES M 926 21 - 947 BPA - - - - BREMS - - - - Government Securities 2,047 6 - 2,053 UDI Securities 127 2 - 129 CETES 1,941 - - 1,941 CETES (Special) 36 444 - 480 Government Eurobonds 37,773 342 - 38,115 Udibonds 259,639 3,189 - 262,828 Treasury Bills - - - - Treasury Notes 2,042 17 - 2,059 Restricted 63,772 824 - 64,596 BONDES D - - - - BONDES F - - - - BONDES M 15,474 325 - 15,799 BPA - - - - Government Securities - - - - UDI Securities - - - - CETES - - - - Government Eurobonds 47,113 482 - 47,595 Udibonds 1,185 16 - 1,201 Banking Securities 1,025 10 - 1,035 Sin Restricción 1,025 10 - 1,035 Bank Acceptances - - - - Development Bank Securities - - - - Bank Securities 1,025 10 - 1,035 Deposit Certificates - - - - Other Banking Securities - - - - Promissory Notes - - - - Restricted - - - - Development Bank Securities - - - - Bank Securities - - - - Deposit Certificates - - - - Other Banking Securities - - - - Private Securities 8,940 823 - 9,764 Unrestricted 6,329 817 - 7,146 Stock Certificates BORHIS 2 0 - 2 Corporate Stock Certificates 2,490 797 - 3,287 Municipal Stock Certificates 2,008 15 - 2,023 Private Eurobonds 700 5 - 705 Infrastructure and Real Estate Trusts - - - - Other Banking Securities 1,129 - - 1,129 Restricted 2,611 6 - 2,617 Corporate Stock Certificates - - - - Municipal Stock Certificates 2,611 6 - 2,617 Private Eurobonds - - - - Equity Financial Instruments - - - - Unrestricted - - - - Shares - - - - Investment Company Shares - - - - Restricted - - - - Shares - - - - Reasonable Value Adjustment Ixe Bank Acq (347) - - (347) Reasonable value adjustment Ixe Bank Acq (74) - - (74) Total 377,846 5,678 - 383,524 INVESTMENTS IN FINANCIAL INSTRUMENTS AND VALUATION EFFECTS 1Q25 (Million Pesos)
Page 65
VI. Appendix First Quarter 2025 65 Repo Creditors MV Repo Debtors VM Collateral Received/Sold in Repo Trans Debtor Balance Creditor Balance MV Repo Creditors Goverment Securities 4,699 63,989 - - 382,439 Banking Securities 0 14,167 - - 15,963 Private Securities - 25 - - 31,742 Total 4,699 78,182 - - 430,144 REPURCHASE AGREEMENT OPERATIONS 1Q25 (Million Pesos) Repo Debtors Instrument Fair Value Futures TIIE 28 Futures - Forward Rate Forward - Fx Forward 380 Stock Forward - Options Rate Options 604 Fx Options 413 Warrants 5 Swaps Rate Swap 9,612 Fx Swap 4,965 Credit Swap 32 Negotiable Total 16,011 Options Rate Options - Fx Options - Swaps Rate Swap 1,381 Fx Swap 971 Credit Swap - Hedging Total 2,352 Position Total 18,364 DERIVATES FINANCIAL INSTRUMENTS OPERATIONS 1Q25 (Million Pesos) Creditor Balance Instrument Fair Value Futures #REF! TIIE 28 Futures - Forward Rate Forward - Fx Forward 80 Stock Forward - Options Rate Options 472 Fx Options 319 Warrants 2 Swaps Rate Swap 4,991 Fx Swap 8,803 Credit Swap 28 Negotiable Total 14,694 Options Rate Options - Fx Options - Swaps Rate Swap - Fx Swap 1,055 Credit Swap - Hedging Total 1,055 Position Total 15,749 Debtor Balance DERIVATES FINANCIAL INSTRUMENTS OPERATIONS 1Q25 (Million Pesos)
Page 66
VI. Appendix First Quarter 2025 66 PRODUCT TYPE UNDERLYING NOTIONAL OPERATIONS FX Forwards Purchases Exchange Rate (USD/MXN) 7,408.13 283 FX Forwards Sales Exchange Rate (USD/MXN) 13,531.76 273 FX Forwards Sales Exchange Rate (EUR/MXN) 1,951.25 2 FX Options Purchases Exchange Rate (Dollar) 27,566.81 137 FX Options Sales Exchange Rate (Dollar) 32,333.63 134 Interest Rate Options Purchases TIIE 36,054.72 115 Interest Rate Options Sales TIIE 34,230.25 229 Interest Rate Options Purchases LIBOR 3,360.47 5 Interest Rate Options Sales LIBOR 311.53 2 Interest Rate Options Purchases SOFR 49,880.11 70 Interest Rate Options Sales SOFR 54,343.00 85 Broker-dealer Interest Rate Options Purchases SOFR 1,796.91 1 Broker-dealer Interest Rate Options Sales SOFR 1,796.91 1 Interest Rate Swaps USD LIBOR LIBOR 87,502.15 1,012 Interest Rate Swaps MXN TIIE TIIE 2,041,677.66 5,648 Interest Rate Swaps USD SOFR SOFR 610,354.43 1,264 Broker-dealer Interest Rate Swaps MXN TIIE M M TIIE 14,313.35 10 Broker-dealer Interest Rate Swaps USD SOFR SOFR 5,867.77 4 Interest Rate and FX Swaps CS USDMXN VARIABLE/VARIABLE 172,591.85 176 Interest Rate and FX Swaps CS USDMXN FIX/FIX 23,225.01 27 Interest Rate and FX Swaps CS CHFMXN FIX/VARIABLE 531.39 4 Interest Rate and FX Swaps CS EURMXN FIX/FIX 16,513.19 55 Interest Rate and FX Swaps CS UDIMXN FALSO 1,377.91 3 Interest Rate and FX Swaps CS GBPMXN FIX/FIX 565.88 1 Credit Derivatives CDS USD ESTADOS UNIDOS MEXICANOS 3,576.65 15 Credit Derivatives CDS USD J.P. MORGAN NY 1,083.21 3 Equity Options Purchases *I_MEXBOL_IND 132.85 1 Equity Options Sales *I_MEXBOL_IND 150.65 2 Equity Options Purchases 1_AMX_L 19.20 1 Equity Options Sales 1_AMX_L 22.56 2 (Million Pesos) NOTIONAL PRINCIPAL AMOUNT IN DERIVATIVE OPERATIONS 1Q25 - Banorte 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 Performing Loans Stage 1 & 2 Commercial Loans 313,714 338,152 - - 97,298 146,770 411,012 484,922 Loans to Financial Entities 15,432 17,560 - - 9,515 19,937 24,947 37,497 Consumer Loans 178,932 210,978 - - - - 178,932 210,978 Mortgage Loans 255,715 276,517 44 33 - - 255,760 276,550 Government Loans 159,904 152,498 - - 16,513 25,668 176,417 178,166 Total 923,697 995,705 44 33 123,326 192,375 1,047,067 1,188,113 Past Due Loans Stage 3 Commercial Loans 2,841 3,599 - - 677 475 3,518 4,074 Financial to Financial Entities 123 136 - - - - 123 136 Consumer Loans 4,063 4,746 - - - - 4,063 4,746 Mortgage Loans 2,159 2,140 3 2 - - 2,162 2,142 Government Loans 9 4 - - - - 9 4 Deffered Items 2,505 3,213 - - (16) 3 2,489 3,217 Total Credit Portfolio 935,396 1,009,542 47 35 123,988 192,854 1,059,431 1,202,432 Insurance and Bail Bond Portfolio 3,554 3,873 - - - - 3,554 3,873 Total Propietary Loans with Insur. and Subs. 938,950 1,013,416 47 35 123,988 192,854 1,062,985 1,206,305 LOAN PORTFOLIO (Million Pesos) Local Currency UDIS Foreign Currency Total
Page 67
VI. Appendix First Quarter 2025 67 PERIOD COST BALANCE OF LOAN PORTFOLIO FINAPE - - FOPYME - - Mortgage UDIS (38.4) 0.0 Mortgage FOVI - - (38.4) 0.0 COST OF BALANCES OF FINAPE, FOPYME, MORTGAGE UDIS AND MORTGAGE FOVI LOAN PORTFOLIOS AS OF 1Q25- GFNorte (Million Pesos) TOTAL ASSETS INCOME TAX NET Global loss reserves loan portfolio 6,233 6,233 Non deductible provisions 2,260 2,260 Excess of accounting value over fiscal value on reposessed long-term assets (193) (193) Diminishable Employee Profit Sharing (PTU) 563 563 Advanced charged fees 1,130 1,130 Effects from valuation of instruments - - Tax losses pending amortization 757 757 Provisions for possible loss in loans 533 533 Pension funds contribution 52 52 Loss on sale of foreclosed assets and credits 1 1 Value decrease in property - - Loan interest - - Other accounts 9 9 Total Assets 11,345 11,345 LIABILITIES Pension funds contribution - - Loan portfolio acquisitions (230) (230) Projects to be capitalized (6,906) (6,906) Intangibles’ amortizations different from commercial funds - - Effects from valuation of instruments (1,169) (1,169) Intangibles’ amortizations related with clients (283) (283) Unrealized loss on securities held for sale (38) (38) Total Liabilities (8,625) (8,625) Assets (Liabilities) accumulated net 2,720 2,720 DEFERRED TAXES 1Q25 (Million Pesos) Non Convertible Subordinated Bonds 2016 (D2_BANOC36_311004) USD 04-oct-16 500 9,607 1,514 15 years 5.750% 04-oct-26 04-oct-31 180 days Non Convertible Subordinated Bonds 2017 (D2_BANOE91_999999) USD 06-jul-17 550 10,077 11,253 Perpetual 7.625% 10-jan-28 Perpetual Quarterly Stock certificates 2016 (94_BINTER_16U) UDIS 13-oct-16 365 2,000 3,076 10 years 4.970% - 01-oct-26 182 days Non Convertible Subordinated Bonds 2019 (D2_BANOB48_999999) USD 27-jun-19 500 9,584 10,230 Perpetual 7.500% 27-jun-29 Perpetual Quarterly Non Convertible Subordinated Bonds 2020 (D2_BANOC21_999999) USD 14-jul-20 500 11,309 10,230 Perpetual 8.375% 14-oct-30 Perpetual Quarterly Stock certificates 2020 (94_BANORTE_20U) UDIS 30-sep-20 107 700 900 10 years 2.760% - 18-sep-30 182 days Non Convertible Subordinated Bonds 2021 (D2_BANOA99_999999) USD 24-nov-21 500 10,718 10,230 Perpetual 5.875% 24-jan-27 Perpetual Quarterly Non Convertible Subordinated Bonds 2021 (D2_BANOB72_999999) USD 24-nov-21 550 11,790 11,253 Perpetual 6.625% 24-jan-32 Perpetual Quarterly Stock certificates 2023 (94_BANORTE_23-3) MXN 24-feb-23 4,180 4,180 4,180 4 years TIIE + .08% - 19-feb-27 28 days Stock certificates 2023 (94_BANORTE_23-4) MXN 25-may-23 5,277 5,277 5,277 3 years TIIE fondeo+0.30% - 21-may-26 28 days Stock certificates 2023 (94_BANORTE_23-5) MXN 25-may-23 2,387 2,387 2,387 7 years 9.410% - 16-may-30 182 days Stock certificates 2024 (94_BANORTE_24) MXN 28-aug-24 5,000 5,000 2,000 2 years TIIE fondeo+0.02% - 26-aug-26 28 days Stock certificates 2024 (94_BANORTE_24-2X) MXN 19-feb-24 3,642 3,642 3,642 7 years 9.740% - 10-feb-31 182 days Stock certificates 2024 (94_BANORTE_24UX) UDIS 19-feb-24 648 5,249 5,457 10 years 4.900% - 06-feb-34 182 days Stock certificates 2023 (94_BANORTE_23U) UDIS 25-may-23 276 2,149 2,323 10 years 4.680% - 12-may-33 182 days Stock certificates 2024 (94_BANORTE_24X) MXN 19-feb-24 4,172 4,172 4,172 4 years TIIE fondeo+0.33% - 14-feb-28 28 days Non Convertible Subordinated Bonds 2024 (D2_BANOD06_999999) USD 20-nov-24 750 15,242 15,345 Perpetual 8.375% 20-may-31 Perpetual Quarterly Non Convertible Subordinated Bonds 2024 (D2_BANOE88_999999) USD 20-nov-24 750 15,242 15,345 Perpetual 8.750% 20-may-35 Perpetual Quarterly INTEREST PAYMENTTYPE OF DEBT CURRENCY DATE OF ISSUE ORIGINAL AMOUNT ORIGINAL AMOUNT (VALUED) CURRENT AMOUNT CALLABILITY LONG TERM DEBT AS OF MARCH 31st, 2025 - BANCO MERCANTIL DEL NORTE (Million Pesos) TERM RATE MATURITY
Page 68
VI. Appendix First Quarter 2025 68 *The Banxico MXN & USD Credit Auction and Ordinary Facility are now within the Permanent Facility according to Banxico 1/2024 circular. The credit amount of the RSP and Permanent Facility are interchangeable. Loans from Local Banks - 2 2 Loans from Local Banks 22,839 - 22,839 Loans from Foreign Banks generated from Foreign Countries - 3,069 3,069 Loans from Development Banks 22,437 - 22,437 Loans from Public Funds 5,212 993 6,205 Loans from Fiduciary Funds 23 - 23 Provisions for Interest 15 - 15 50,526 5,558 54,590 Eliminations (19,015) Total 35,575 TOTALFOREIGN CURRENCY BANK AND OTHER ENTITIES LOANS’ AS OF 1Q25 (Million Pesos) LOCAL CURRENCY Demand Deposits Local Currency and UDIs 2.52% Foreign Currency 1.82% Time Deposits - Retail Local Currency and UDIs 7.72% Foreign Currency 3.12% Time Deposits - Money Market Local Currency and UDIs 9.24% Inmediate Redemption Loans Local Currency and UDIs - Foreign Currency - Public Funds and Development Banks Local Currency and UDIs 9.19% Foreign Currency 4.85% CORE DEPOSITS (BANORTE) DUE TO BANKS & CORRESPONDENTS (BANORTE) CORE DEPOSITS AND DUE TO BANKS & CORRESPONDENTS - INTEREST RATES 1Q25 Line Used % used Line Used % used Line Used % used Bank Counterparty Lines (Call Money) 206,354 2,572 1.2% 222,227 3,682 1.7% 240,768 4,037 1.7% Banxico (Repos for liquidity with the System of Payments) RSP* 93,926 24,285 25.9% 95,811 19,212 20.1% 101,319 18,108 17.9% Banxico Credit line with Government and Banking securities as collateral (Permanent Facility)* 159,551 - 0% 134,415 - 0.0% 133,047 - 0.0% Banxico Credit line with State and Municial Government securities as collateral (Extraordinary Facility) 62,940 - 0% 66,111 - 0.0% 65,800 - 0.0% TOTAL 522,771 26,857 5.1% 518,564 22,894 4.4% 540,934 22,145 4.1% 1Q24 4Q24 1Q25 (Million pesos) MAIN CREDIT LINES RECEIVED 1Q25 (BANORTE)
Page 69
VI. Appendix First Quarter 2025 69 Trading income Consolidated Securities - Unrealized gains 3,949 Trading financial instruments 1,540 Derivate trading financial instruments 2,409 Derivative instruments - hedging (1) Impairment loss or revaluation increase (311) Result from foreign exchange valuation (1,265) Result from valuation of precious metals 2 Result from purchase/sale of securities and derivatives 273 Trading financial instruments 221 Financial instruments to collect or sell 92 Negotiable derivate instruments (5) Cash flow hedges (36) Result from purchase/sale of foreign exchange (533) Result from purchase/sale of precious metals 1 Total 2,115 TRADING INCOME 1Q25 (Million Pesos)
Page 70
VI. Appendix First Quarter 2025 70 Internal Control For Grupo Financiero Banorte, S.A.B. de C.V. (GFNORTE), internal control is a shared responsibility among all of its constituents; therefore, the Board of Directors, other Corporate Governance entities, the senior management team, and each one of its executives and employees are part of the Internal Control System (ICS). ICS is the general framework set forth by the Board of Directors with the objective of reaching institutional objectives through policies and monitoring activities and procedures, which have a positive impact on risk management, on the trustworthiness of financial information being generated, and on regulatory compliance. ICS establishes objectives and general guidelines which provide a framework to activities and responsibilities applicable to all personnel in charge of origination, operational processing, and execution. Such activities are monitored by teams specializing in risk monitoring and in mitigating controls. ICS is structured around three defense lines: A. First. The owners of support and business processes, who are ultimately responsible for the primary internal control function in their activities. B. Second. Risk, Credit, Legal, Controller departments and CISO, which provide permanent control and monitoring support, and C. Third. Internal Audit, with which the independence granted by its direct line of report to the Internal Audit and Corporate Practices Committee, supervises all activities and the adequate development of all functions across all areas. At GFNORTE we are convinced that having an adequate control environment is yet another competitive advantage that drives our growth and solid presence in the domestic financial market. Therefore, all executives and employees perform their daily activities with discipline as well as with strict adherence to the norm; following a philosophy of getting things done right the first time without having to rely on reviews that might be carried out by other areas. During the first quarter of 2025, there was a continuous development of activities related to strengthening control, risk evaluation and management, establishment and monitoring of controls, and quality of information assurance; highlighting the following: A. The various Corporate Governance Committees have had the required financial, economic, accounting and/or legal information for proper decision-making. B. The manuals containing policies and procedures remained updated for changes in external regulations, new products, and changes in the Institution's processes or improvements to internal controls. C. The requests from different internal areas regarding internal control matters were addressed, both in support of the development of new institutional projects and those that derive from regulatory changes. D. GFNORTE’s business and operating support processes were constantly monitored through the Business Process and Management Controllers. They issue periodic compliance reports and identify areas of opportunity so that they can be remediated appropriately. E. Various activities regarding internal accounting commenced in accordance with the work plan established at the beginning of the year. F. Effectiveness tests related to the Business Continuity Plan (the Plan) commenced in accordance with the calendar dates and scope, approved by the corresponding Corporate Governance Committee in this area, an important step in our capacity to give continuity to the operations of our payment method systems while carrying out SPEI transactions in the alternate app (back up) in real time. In addition, the Plan was activated with satisfactory results in response to the events that occurred. G. Revisions were carried out to ensure regulatory compliance with the requirements set forth by the Authority regarding the operation of the payment methods SPID, SPEI, CoDi and BDT. H. We continued to monitor the transactionality of client accounts for the detection of possible operations, that given its characteristics, might be related to money laundering and financing terrorism. I. Different actions were carried out to ensure the proper use of personal data. Banorte is the only bank in Mexico with Certification of Compliance with the Personal Data Protection Act. Banorte also has PCI -DSS Certifications in its Acquiring, Electronic Banking and Contact Center channels. J. The Chief Information Security Officer (CISO) carried out its functions according to the Master Plan, reporting the findings and the details of the activities to the General Director of GFNorte and to the Corresponding Corporate Governance Committees, while maintaining a matrix coordination with the Comptroller, as part of the SCI. K. The tasks to comply with The Fraud Prevention Management Plan 2025 were carried out, by informing the corresponding Corporate Governance bodies.
Page 71
VI. Appendix First Quarter 2025 71 L. The follow-up to the improvement actions regarding the observations made by the different members of the SCI continued. M. The requirements of the Supervisory Authorities were addressed, and the obligations to act and report as required by external regulations were fulfilled. Additionally, follow -ups are conducted on the remediation of the resulting recommendations. Financial Situation and Liquidity Treasury Policy Regulatory Framework All operations carried out by the Treasury are executed in strict accordance with regulations established by Banking Institution regulatory authorities, such as Banco de México (BANXICO), the National Banking and Securities Commission (CNBV), Ministry of Finance and Public Credit (SHCP), as well as those set forth in the Law of Credit Institutions. Moreover, the Treasury is subject to policies regarding liquidity, market, and counterparty credit risks management, annually established by the Risk Policy Committee (CPR) through the following operation parameters: Market Risk: • VaR (Value at Risk) • DV01 (sensitivity by security, term and currency) Liquidity Risk: • LCR (Liquidity Coverage Ratio) • ACLME (Regime of liabilities admission and investment in foreign currency and limit of FX risk position) • NSFR (Net Stable Funding Ratio) • Survival Horizon Credit Risk: • Counterparty Lines Capital Management: • Tier 1, Core Tier 1, and Net Capital (these are monitoring thresholds, the Treasury will set mechanisms to the extent that the Bank or any of its subsidiaries approaches the limits established by the CPR). Treasury Management To maintain a prudent A&L management strategy through stable funding sources, constitute and maintain liquid assets at optimum levels, the Treasury applies the following guidelines: 1. Diversification of funding sources in national and international markets. 2. Structure liabilities in such a way as to avoid the accumulation of maturities that significantly influence the administration and control of the Treasury’s resources. 3. Ensure liquidity by tapping mid and long-term liabilities. 4. Manage and maintain liquid assets to total assets, considering its effects on profitability and liquidity needs. 5. Determine and propose the Transfer Costs Policy, according to the current business plan.
Page 72
VI. Appendix First Quarter 2025 72 Treasury’s Funding sources Sources of financing for the Treasury are classified as follows: 1. Public: • Demand Deposits • Term Deposits 2. Market: • Commercial Paper • Cross-Currency Swaps • Deposit Certificates • Issuance Programs • Bank Loans 3. National Banks and Development Funds: • National Banks • Funds 4. Correspondent Banks: • Foreign Banks 5. Available credit lines: (available and not disposed) • Commercial paper • Call Money • Correspondent Banks Through various long-term financing programs, programs are analyzed and implemented to consolidate the debt profile. The Treasury, in coordination with the Risk Management department, monitor on a permanent basis compliance with the LCR limits set forth by the CPR and authorities. Main sources of liquidity Client deposits, including interest -bearing and non -interest-bearing demand deposits, as well as time deposits, are our main liquidity source. Regarding other liquidity sources, Banorte has diverse mechanisms to access debt and capital markets. The Institution obtains resources through the issuance of debt securities, subordinated debt (Capital Notes), and loans and facilities from other banking institutions including the Central Bank and International Banks. Liquid assets include investments in government securities and deposits held in the Central Bank and foreign banks. Main initiatives of Banorte's liquidity during 1Q25. Banorte's liquidity strategy aims to maintain adequate liquidity levels based on prevailing circumstances. In this sense, management decided to maintain current liquidity levels prioritizing funding from client’s deposits. In February 2025, a security with the ticker symbol BANORTE 23 -2, issued in 2023, matured for an amount of Ps 6.58 billion. In February 2025, a total voluntary early redemption of a Structured Bank Note with the ticker symbol BANORTE 2-24 was carried out, for an amount of Ps 200 million. In addition, it should be noted that Banorte did not use the Mexican Central Bank’s Permanent Liquidity Facilities nor the Extraordinary Facilities during 1Q25.
Page 73
VI. Appendix First Quarter 2025 73 Detailed information regarding liquidity sources is reported in different headings of the GFNorte’s Balance Sheet in this report. Dividend Policy By Resolution of the Ordinary General Shareholders' Meeting held on April 30, 2019 , it was approved to modify the Dividend Policy, so that the dividend payment is a percentage according to the following: 1. Between 16% and up to 50% of the net income of the prior year. As reference, the previous Dividend Policy was approved in accordance with the following: a) By resolution of the Ordinary General Shareholders Meeting held on November 19, 2015, it was approved to modify the Dividend Policy so that the dividend payment is a percentage according to the following: 1. Between 16% and up to 40% of the net income of the prior year. b) By resolution of the Ordinary General Shareholders Meeting held on October 17, 2011, it contemplated the dividend payment as follows: 1. 16% of the recurring net profit in case the profit grows between 0% and 10% during the year. 2. 18% of the recurring net profit in case the profit grows between 11% and 20% during the year. 3. 20% of the recurring net profit in case the profit grows more than 21% during the year. Related Parties Loans According to Article 73 Bis of the Law of Credit Institutions, loans granted to the related parties of credit institutions cannot exceed the established limit of 35% of the basic portion of net capital. In the case of GFNorte, as of March 31 st and December 31 st, 2024, the amount of loans granted to third parties was as follows (billion pesos): Lender Mar-25 % Basic Equity Dec-24 % Basic Equity Banorte 33.38 15.1% 32.47 17.1% 33.38 32.47 The loans granted are under the 100% limit set forth by the LIC. Banorte As of March 31st, 2025, total loans granted to related parties, under Article 73 of the Law of Credit Institutions, was Ps 33.38 billion (including Ps 3.28 billion in Letters of Credit “CC”, which are registered in memorandum accounts), representing 2.9% of Banorte’ s total loan portfolio (excluding the balance of CC). Out of the total related loans balance, Ps 21.55 billion were loans granted to clients linked to members of the Board of Directors, and Ps 11.83 billion were linked to companies related to GFNorte. At the end of March 2025, there were no loans granted to clients related to shareholders. In accordance with Article 73 of the Law for Credit Institutions, the balance of GFNorte’ s related party loan portfolio for individuals and corporations at the end of March 2025 was 15.1% of Core Equity. Related party loans have been granted under market conditions and rated in accordance with the policies, procedures, and rating systems applicable to the rest of GFNorte’ s loan portfolio based on the general dispositions applicable to credit institutions regarding rating of loan portfolios issued by CNBV. Additionally, 100% of the related party loans are rated in Category "A", and most of these loans were classified as commercial loans. As of December 31st, 2024, total loans granted to related parties, under Article 73 of the Law of Credit Institutions, was Ps 32.47 billion (including Ps 3.12 billion in Letters of Credit “CC”, which are registered in memorandum accounts), representing 2.8% of Banorte’ s total loa n portfolio (excluding the balance of CC). Out of the total related loans balance,
Page 74
VI. Appendix First Quarter 2025 74 Ps 20.73 billion were loans granted to clients linked to members of the Board of Directors, and Ps 11.74 billion were linked to companies related to GFNorte. At the end of December 2024, there were no loans granted to clients related to shareholders. In accordance with Article 73 of the Law for Credit Institutions, the balance of GFNorte’ s related party loan portfolio for individuals and corporations at the end of December 2024 was 17.1% of Core Equity. Related party loans have been granted under market conditions and rated in accordance with the policies, procedures, and rating systems applicable to the rest of GFNorte’ s loan portfolio based on the general dispositions applicable to credit institutions regarding rating of loan portfolios issued by CNBV. Additionally, 100% of the related party loans are rated in Category "A", and most of these loans were classified as commercial loans. Loan or tax liabilities The tax credits listed below are currently in litigation: Million pesos People in Charge The undersign represents under oath that, taking into account our respective functions, we have drawn up the information relative to Grupo Financiero Banorte, which, to the best of our knowledge, reasonably reflects its financial situation. Furthermore, we express that we are no t aware that relevant information has been omitted or falsified in this quarterly report or that it contains information that may lead to errors for investors. Act. Jose Marcos Ramirez Miguel Chief Executive Officer of Grupo Financiero Banorte, S.A.B. de C.V. Eng. Rafael Arana de la Garza Chief Operating Officer & Chief Financial Officer C.P. Isaias Velazquez Gonzalez Managing Director of Internal Audit Lic. Jorge Eduardo Vega Camargo Deputy Managing Director of Comptrollership C.P.C. Mayra Nelly López Deputy Managing Director of Accounting AFORE BANORTE Ps 2 Loan #4429309391 Payroll Tax of the state of Coahuila 2 PENSIONES BANORTE Ps 423 Financial year 2014 423 SEGUROS BANORTE Ps 1,240 Financial year 2014 1,240 SEGUROS BANORTE Ps 1,440 Financial year 2015 1,440 SEGUROS BANORTE Ps 2,220 Financial year 2017 2,220 SEGUROS BANORTE Ps 2,182 Financial year 2017 2,182 As of March 31st, 2025
Page 75
VI. Appendix First Quarter 2025 75 Board of Directors The Board of Directors for the 2025 financial year is still subject to the Annual General Ordinary Shareholders’ Meeting approval, taking place on April 23rd, 2025. At the end of March 2025, Grupo Financiero Banorte, S.A.B. de C.V. (“GFNorte”) was comprised of 13 Regular Directors, and if the case, by their respective Alternates; out of which 8 were independent. The Board of Directors was designated by the Annual General Ordinary Shareholders' Meeting held on April 29th, 2024, comprised by the following Members: Grupo Financiero Banorte Board of Directors DIRECTORS Mr. Carlos Hank González Chariman of the Board of Directors Mr. Juan Antonio González Moreno Director Mr. David Juan Villarreal Montemayor Director Mr. José Marcos Ramírez Miguel Director Mr. Carlos de la Isla Corry Director Mrs. Alicia Alejandra Lebrija Hirschfeld Independent D. Mr. Clemente Reyes Retana Valdés Independent D. Mrs. Mariana Baños Reynaud Independent D. Mr. Federico Carlos Fernández Senderos Independent D. Mr. David Peñaloza Alanís Independent D. Mr. José Antonio Chedraui Eguía Independent D. Mr. Alfonso de Angoitia Noriega Independent D. Mr. Thomas S. Heather Rodríguez Independent D. ALTERNATES Mrs. Graciela González Moreno Alternate Mr. Juan Antonio González Marcos Alternate Mr. Alberto Halabe Hamui Independent A. Mr. Gerardo Salazar Viezca Alternate Mr. Roberto Kelleher Vales Independent A. Mrs. Cecilia Goya de Riviello Meade Independent A. Mr. José María Garza Treviño Independent A. Mr. Manuel Francisco Ruiz Camero Independent A. Mr. Carlos Césarman Kolteniuk Independent A. Mr. Humberto Tafolla Núñez Independent A. Mr. Carlos Phillips Margain Independent A. Mr. Diego Martínez Rueda-Chapital Independent A. Note: Mr. Alberto Pérez -Jácome Friscione submitted his resignation from the position of Independent Alternate on June 25th, 2024.
Page 76
VI. Appendix First Quarter 2025 76 Compensations and Benefits The total amount of compensations and benefits paid to Banorte’s main officers in 2024 was approximately Ps 352.3 million. Compensations and Benefits are as follows: • Fixed Compensation: Salary. • Annual Bonus Plan for 2024: The Bonus Plan for each business area evaluates compliance with the net income budget for each particular business, as well as an evaluation of individual performance, which considers the achievement of each participant's goals and objectives. The bonus for certain departments is also adjusted based on operational risk evaluations carried out by the Control Department. Likewise, eligibility to receive the deferred variable compensation for a group of managers is determined by a risk and compliance mechanics’ review. Eligible personnel of staff areas are evaluated based on the compliance with the net income budget for the Group , as well as individual performance in accordance with the achievement of each candidate’s goals and objectives. For senior management, yearly bonuses are covered in 60% and the remaining 40% is covered in three annual installments of 13%, 13%, and 14%, respectively. • Banorte’s Long-Term Incentive Plans: Stock Options: Long-term incentive scheme consists of assigning a stock option package through a trust, with a 100% right in a period up to 4 years, for designated Officers by the Compensation Committee. Participants will be entitled to exercise a percentage of the package each year, receiving shares in its capital account. • Vacations: From 16 up to 40 working days, depending on each employee’s years of service. • Holiday Bonus: From 8 up to 23 days of salary to be paid on each anniversary of the employee, depending on the number of years of service. • Legally Mandated Christmas Bonus: Equivalent to 42 days of salary. • Savings Fund: The Institution matches the amount of the employee's contribution up to a maximum of 13% of their monthly salary in accordance with the legal limits established in the Income Tax Law. • Medical Service: Traditional Scheme: Banorte provides medical services through recognized medical institutions, obtaining efficiency in cost and service. Full Medical Insurance Scheme: Major medical expenses insurance policy. • Life Insurance: In the event of death or total incapacity, a life insurance policy provides a sum of up to 36 months’ salary. In the event of accidental death, the compensation is double, prior verification by the insurance company. • Pension and Retirement: The institution has two types of plans: one with defined benefits (Traditional and Special), and a second one with a defined contribution (Asegura tu Futuro). • Asegura tu Futuro: established since January 1st, 2001. This is a defined contribution plan, whereby a percentage of individual contributions by the employee and the company (Banorte) are deposited in a fund for withdrawal by that employee upon termination of their labor relationship. This plan has an "initial individual contribution" (only for employees hired prior to January 1st, 2001) corresponding to pension benefits for past services accumulated to the date the plan was created. The maximum monthly contribution is 10% of the gross nominal wage (5% employee and 5% company). The total amount accumulated by the Asegura tu Futuro plan for the company’s main officers amounts to Ps 257.3 million. • Board Members’ compensation for attending Board meetings: 2 Ps 50 gold coins ("Centenarios") at the value of each meeting. In 2024 it was Ps 6.7 million net.
Page 77
VI. Appendix First Quarter 2025 77 Basis for submitting and presenting Financial Statements Grupo Financiero Banorte (GFNorte). Issues the financial statements in consolidated form with its Subsidiaries in accordance with the General Provisions Applicable to the Controlling and Sub-Controlling Companies of Financial Groups that regulate the matters that correspond jointly to the National Supervisory Commissions (the Provisions) published in the Official Gazette of the Federation on June 29, 2018 , modified through Resolution published in the same official medium on December 21, 2021 and March 14, 2025. Banorte. Issues the financial statements in consolidated form with its Subsidiaries in accordance with the General Provisions Applicable to the financial information of the Credit Institutions (the Provisions) published in the Official Gazette of the Federation on December 2, 2005, modified by means of published Resolutions in the aforementioned Official Gazette on March 3 and 28, September 15, December 6 and 8, 2006, January 12, March 23, April 26, November 5, 2007, March 10, August 22, September 19, October 14, December 4, 2008, April 27, May 28, June 11, August 12, October 16, November 9, December 1 and 24, 2009, January 27, February 10, April 9 and 15, May 17, June 28, July 29, August 19, September 9 and 28, October 25, November 26 and December 20, 2010, January 24 and 27, March 4, April 21, July 5, August 3 and 12, September 30, October 5 and 27, and December 28, 2011, June 19, July 5, October 23, November 28 and December 13, 2012, January 31, April 16, May 3, June 3 and 24, July 12, October 2 and December 24, 2 013, January 7 and 31, March 26, May 12 and 19, July 3 and 31, September 24, October 30, December 8 and 31, 2014, January 9, February 5, April 30, May 27, June 23, August 27, September 21, October 29, November 9 and 13, December 16 and 31, 2015, April 7 and 28, June 22, July 7 and 29, August 1, September 19 and 28, and December 27, 2016, January 6, April 4 and 27, May 31, June 26, July 4 and 24, August 29, October 6 and 25, December 18, 26 , and 27, 2017, January 22, March 14, April 26, May 11, June 26, July 23, August 29, September 4, October 5, November 15 and 27, 2018, April 15, July 5, October 1, and November 4 and 25, 2019, March 13, April 9, June 9, August 21, October 12, November 19, December 4, 2020, May 21, June 18, July 20 and 23, August 6, September 23, and December 15, 30, and 31 2021, May 13 and 27, June 22, September 2, October 19, 2022, January 13, April 17, September 13, 15 and 27, and Decem ber 27, 2023, February 07, 09 and 27, 2024, April 16, May 30, June 14, July 11, August 14 and 29, September 30, December 27 and 30, 2024, respectively. GFNorte and Banorte. The financial information contained in this document has been prepared in accordance with the regulation issued by the National Banking and Securities Commission (CNBV) for the holding company and the financial entities that make up the Financial Group and the NIF issued by the Mexican Board of Standards of Financial Information, AC (CINF). The regulation of the CNBV and the NIFs differ from each other due to the specialized operations of the Credit Institutions. They also differ from the accounting principles generally accepted in the United States of America (US GAAP) and the regulations and principles established by the North American authorities for this type of financial entities. In orde r to present the information contained in an international format, the format for the classification and presentation of certain financial information differs from the format used for the financial information published in Mexico. The information contained in this document is based on unaudited financial information of each of the entities to which it refers. CNBV Indicators’ Methodology Operating Efficiency Cost to Income Ratio = Non-Interest Expense of the period / Total Income of the period Where: Total Income = Net Interest Income + Non-Interest Income Non-Interest Income = Fees Charged – Fees Paid + Trading Income + Other Operating Income (Expenses) Operating efficiency = Annualized Non-Interest Expense of the period / average Total Assets of the period Profitability NIM = Annualized Net Interest Income of the period / average Earning Assets of the period
Page 78
VI. Appendix First Quarter 2025 78 NIM Adjusted for Credit Risks = Annualized Net Interest Income Adjusted for Credit Risks for the period / average Earning Assets of the period Where: Performing Assets = Cash and Equivalents + Investments in Securities + Estimate of Investments in Securities + Repo Debtors + Securities to be Received in Repo Transactions + Derivatives + Valuation Adjustments for Financial Asset Hedging + Loan Book Stages 1 and 2 + Receivable Benefits for Securitization Transactions ROE = Annualized Net Income of the period / average Majority Equity of the period Where: Majority Equity = Total Equity – Minority Interest ROTE = Annualized Net Income of the period / average Tangible Majority Equity of the period Where: Tangible Majority Equity = Total Equity – Minority Interest - Intangibles - Goodwill Intangibles = Deferred Charges + Anticipated Payments + Intangible Assets + Rights of Use of Intangible Assets ROA = Annualized Net Income of the period / average Total Assets of the period Asset Quality Cost of Risk = Annualized Provisions of the period / average Total Loans of the period Non-Performing Loan Ratio = Monthly Stage 3 Loans / Monthly Stages 1+2+3 Loans Coverage Ratio = Monthly Preventive Loan Loss Reserves from the Financial Position Statement / Monthly Stage 3 Loans Taxes Tax Rate = Income Tax of the period / Operating Income of the period Liquidity Liquidity = Monthly Liquid Assets / Monthly Liquid Liabilities Where: Liquid Assets = Cash and Equivalents + Trading Financial Instruments Without Restriction + Financial Instruments to Collect or Sell Without Restriction Liquid Liabilities = Demand Deposits + Interbank and other Organisms Immediate Enforceability + Interbank and other Organisms Short-Term Loans Solvency Leverage Ratio = Monthly Total Assets / Monthly Equity Notes on Calculation Methodology: 12-Month Cumulative Calculations For ROA, ROE, ROTE, NIM, NIM Adjusted for Credit Risks, Cost of Risk, Operating Efficiency, and Cost to Income Ratio 12M, the last 12 months of the Income Statement figures are added, and the last 12 months of the Statement of Financial Position figures are averaged. 9-Month Cumulative Calculations For ROA, ROE, ROTE, NIM, NIM Adjusted for Credit Risks, Cost of Risk, and Operating Efficiency 9M, the 9 months of the Income Statement figures for the year are added and annualized (divided by 9 and multiplied times 12), and the last 9 months of the Statement of Financial Position figures are averaged.
Page 79
VI. Appendix First Quarter 2025 79 6-Month Cumulative Calculations For ROA, ROE, ROTE, NIM, NIM Adjusted for Credit Risks, Cost of Risk, and Operating Efficiency 6M, the 6 months of the Income Statement figures for the year are added and annualized (divided by 6 and multiplied times 12), and the last 6 months of the Statement of Financial Position figures are averaged. Quarterly Calculations For ROA, ROE, ROTE, NIM, NIM Adjusted for Credit Risks, Cost of Risk, and Operating Efficiency, the 3 months of the Income Statement figures for the quarter are added and annualized (divided by 3 and multiplied times 12), and the last 3 months of the Statement of Financial Position figures are averaged. Income Statement Ratios Cumulative Tax Rate and Cost to Income Ratio : The accumulated balances to the month for which the calculation is performed are considered. Quarterly Tax Rate and Cost to Income Ratio: The quarterly balances for which the calculation is performed are considered. Statement of Financial Position Ratios Non-Performing Loans Ratio, Coverage Ratio, Liquidity Ratio, and Leverage Ratio: Figures corresponding to the month under calculation are taken from the Statement of Financial Position; as such, there is no difference in the calculation of quarterly or cumulative ratios.