Financial Group Banorte Plans to Increase 14% the Credit in Mexico

Banorte plans to increase 14% credit
Consumer credit is an important lever in the growth of the bank's portfolio, in his balence Banorte has made a reservation for 100% of what you owe Mexico, 1.250 million pesos.
As part of the integration of Ixe with Banorte, recently joined Marcos Ramirez, who will serve as corporate director of Banorte. (Photo: AP file)
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By: Jesus Ugarte
MEXICO CITY (FORTUNE) - The total loan portfolio of Banco Mercantil del Norte (Banorte) this year will grow three times to do the Mexican economy (gross domestic product), ie between 13% and 14% estimated to officials of the institution in a conference call with analysts, the financial system.

According to Alejandro Valenzuela, director general of the third largest bank in the country, the expansion of the total portfolio will be supported by a strong increase in consumer credit , followed by the mortgage, payroll and government funding (in the latter advantage much cross-selling).

It also found that the net interest margin of the bank could expand from 20 to 30 basis points , driven by higher interest rates on consumer credit and lower cost of funding.

Moreover, managers at the conference mentioned that as part of the integration process of Ixe with Banorte , he joined Marcos Ramirez (previously working in Santander), who will serve as corporate director.

Book debt to 100% Mexicana

In the conference call, executives said Banorte in the fourth quarter of 2010 the bank made a reservation for 100% of the debt that Mexico had with Banorte (approximately 1.250 billion pesos (mp).

Also in the third quarter of last year the financial institution was able to recover about 182 million pesos of the total of what he owed the airline to suspend operations on 28 August.

Yesterday at a press conference, Alejandro Valenzuela said he did not rule out the possibility that the bank will become a shareholder in Mexico , as part of this rescue. He added that work with PC and Capital (who works on the integration of groups of Mexican investors who capitalized) to find a solution to the problem that led the airline to suspend operations.

On August 28, 2010, New Air Group fully suspended operations Compania Mexicana de Aviation (CMA), Mexicana and Click Mexicana Link arguing the serious financial damage that was and unable to reach agreements (with the different unions workers) that will give future viability of their operations and allow adequate capitalization.

According to the Directorate General of Civil Aviation (DGAC), the first half of 2010, Grupo Mexicana de Aviacion, which includes the three airlines mentioned, had a 28.7% share in the domestic passenger market, ranking second after of Aeromexico , which was 32.0%.

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