Banorte's credit for the country's development increases by 25%

As an ally of the families and development of the country, Grupo Financiero Banorte (GFNorte) increased 25% your current credit portfolio to 3T18 compared to the same period of the previous year, to achieve a balance between $ 751,735 mdp.

This growth is driven by its portfolio of Consumer credit, which recorded an increase of 13%compared to the same period before, when we go up to $ 263.414, where auto loans and mortgages stood out.

The chairman of the board, Carlos Hank González, talks about the results. # 3T18 pic.twitter.com/cZZwbwCerO

– GFBanorte México (@GFBanorte_mx) October 19, 2018

The car loan reported growth of 30% when located in $ 23,260 mdp period of comparison, resulting in the increase of this portfolio in the banking market and the balance of the housing credit it was raised at $ 150,462 mdp, growth of 16% which reinforces its second place in the system.

These growths translated into 16,000 families received a home loan in the first nine months of the year and more than 52,500 people they accepted a car loan.

On the other hand, the balance of the credit card it was located in $ 35,590, with an increase of 8%compared to the same period of the previous year, leading the growth of its main competitors, the result of the cautious strategy aimed at maintaining the quality of the portfolio. The salary credit he grew up 4%, when adding $ 54 102 mdp.

al # 3T18 highlight our key indicators #ROE and #ROA pic.twitter.com/WiiauoxayU

– GFBanorte México (@GFBanorte_mx) October 18, 2018

The increase in the current loan portfolio was also explained by the portfolio commercialwho has reached a balance of $ 163,218 pdd, with a growth of 25% vs. 3Q17; wallet business reaches a balance of 127,409 USD, a 20% higher same period of the previous year, and the government added 197.636 million pesos, which meant a 50% increase, results reflecting the integration of Grupo Financiero Interacciones.

The portfolio integrates 93 infrastructure projects for the benefit of the country's development, of which 28 stand out in the mobility sector, with a presence in 16 states, for the construction, modernization and maintenance of 2,300 km of roads, as well as for Improvement of public transport infrastructure.

We increased the granting of credits to #MexicanosFuertes. # 3T18 pic.twitter.com/lv072x0pvQ

– GFBanorte México (@GFBanorte_mx) October 18, 2018

In energy he participated in 26 projects, with a presence in 24 states of the country, has financed 1,073 km of transmission lines, 30 substations, 530,104 meters and 163,000 luminaires.

Projects to provide public water supply, drainage, sanitation, sanitation and sewage services have also been funded in various states and municipalities.

We are allies of the families and development of the country. The results # 3T18 pic.twitter.com/BafqGOlCyn

– GFBanorte México (@GFBanorte_mx) October 18, 2018

In the education sector, they helped finance the installation and maintenance of fountains for public schools, thereby benefiting 935 schools with a population close to 102 thousand students in four states.

"The increase in credit is a direct result of our commitment to Mexican families, their needs and their dreams." For Banorte, growth is a success only if it is in the hands of Mexicans from all regions of the country. , did he declare. Marcos Ramírez Miguel, General Manager of GFNorte.

Outstanding loans amounted to 13 895 million pesos in 3Q18, which implied a Expired Portfolio Index of 1.8%.

The traditional watershed increased 9% 3Q18 compared to the same period of the previous year, adding $ 620,215 mdp. In case of recruitment wing view an increased 8% and term grew up a 10%

Thanks to these results, during the 3T18 The group has reached a net profit of 7,816 million pesos, up 26% at 3Q17.

The net profit at 9M18 added 21.776 million pesos, what that represented annual growth of 25% compared to the same period of the previous year, driven by the behavior of the subsidiaries: Bank + 19% the Leasing and factoring + 19%, the Brokerage + 17%, the Fund Operator + 31% and the sector of Savings and forecasts + 26%.

The Financial margin he grew up 20% to get $ 19,061 mdp at 3T18. The profitability indicators also reflect the success of the GFNorte strategy: Margin of Net Interest (MIN) went from 5.5% to 5.7% in the annual comparison period; the Return on capital (ROE) achieved 19.7% against 18.0% in 3Q17, while the Return on assets (ROA) has arrived from 1.9% to 2.1% in the same period.

Banco Mercantil del Norte registered a capitalization index (ICAP) of 16.6%, with a core capital level of 12.1%. On the other hand, the leverage ratio was 8.3%.

Relevant events:

1. MERGER WITH INTERACTIONS OF THE FINANCIAL GROUP

As of July 13, 2018, the mergers between Grupo Financiero Banorte ("GFNorte") and Grupo Financiero Interacciones ("GFInter"), as well as its subsidiaries, had an effect consistent with the merger agreements, as well as with the the authorizations of the financial authorities duly registered in the corresponding commercial registers of the trade and in accordance with the applicable legislation. On July 10, 2018, GFNorte and GFInter obtained from the Ministry of Finance and Public Credit, after hearing the opinion of the Bank of Mexico and the National Banking and Securities Commission and the National Insurance Commission and the deposit, the necessary authorizations. necessary to achieve the merger of: (i) GFInter, as a merged company, with GFNorte, as a merged company; (ii) Banco Interacciones, S.A., as a merged company, with Banco Mercantil del Norte, S.A., as a merged company; (iii) Interacciones Casa de Bolsa, S.A. of C.V., as a merged company, with Casa de Bolsa Banorte, S.A. of C.V., as a merging company; (iv) Aseguradora Interacciones, S.A. of C.V., as a company resulting from the merger, with Seguros Banorte, S.A. of C.V., as a merging company; and (v) Interacciones Sociedad Operadora de Fondos de Inversión, S.A. of C.V., as a merged company, with Operadora de Fondos Banorte, S.A. of C.V., as a merging company (the "Mergers").

2. BANORTE FORUM 2018

The GFNorte held the strategy of Foro Banorte 2018 on the theme "Banorte, Aliado del Futuro de México" on August 22nd and 23rd. The Forum was a forum for dialogue between the next administration and the country's business community, who were able to gain first-hand vision of the next government in terms of budget, infrastructure, telecommunications, education, and respect for the country. law.

3. AFORE XXI BANORTE IS RECOGNIZED AS THE BEST PENSION FUND IN MEXICO IN 2018

On July 31, 2018 and for the third time in a row, Afore XXI Banorte has been recognized by the World Finance Fund Fund Awards as the best pension fund in Mexico. This is the fourth recognition of Afore XXI Banorte in this category, which rewards companies that have demonstrated their ability to innovate and adapt to the complex and changing environment of the sector and maintain a level of excellence. Excellency. Afore XXI Banorte has been selected for the trajectory it has maintained in its investment policy, as well as for its leadership in the sector by developing innovative strategies, demonstrating quality, adaptability and excellence, as well as technology solutions that allow it to know more about the needs of its customers.

4. GFNORTE WAS INCLUDED FOR THE THIRD CONSECUTIVE YEAR IN THE SUSTAINABILITY INDEX OF THE FTSE4GOOD EMERGENCY MARKET MARKET.

In September 2018, GFNorte was considered a new account in the FTSE4Good index series, which confirms it as a company meeting the highest sustainability standards dictated by the FTSE London Stock Exchange. This index is made up of 499 companies, including 24 Mexican companies. Companies were evaluated in their areas of climate change, biodiversity, labor standards, health and safety, as well as risk management and corporate governance. GFNorte is ranked number 5 by the market capitalization of Emerging Latin America.

5. GFNORTE IS RECOGNIZED BY THE INSTITUTIONAL INVESTOR MAGAZINE

In August, Institutional Investor magazine published the results of the annual ranking of the "Best Leadership Team in Latin America in 2018", determined by a survey of 924 fund managers and market analysts from 205 institutions. The attributes assessed were: accessibility to management; How informed is the team? Timely and appropriate financial information; speed of response to concerns; transparency and disclosure of financial information; conferences of constructive results; In-depth and relevant information on social environment and governance (ESG) issues as well as on socially responsible investment (SRI). For the eighth year in a row, GFNorte's management team remained among the top positions among Latin American banks and Mexican companies, highlighting:  1st place as best investor relations manager (IRO) ) 1st place as the best Investor Relations (IR) team.

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