2024-04-17 20:45:23 ET
Grupo Financiero Banorte, S.A.B. de C.V. (GBOOF)
Q1 2024 Earnings Call Transcript
April 17, 2024 11:00 AM ET
Company Participants
Tomas Lozano - Head of Corporate Development, Investor Relations
Marcos Ramirez - Chief Executive Officer
Rafael Arana - Chief Financial Officer
Fernando Soberon - Managing Director, Annuities and Pensions
José Francisco Martha González - MD Digital Banking
Conference Call Participants
Yuri Fernandes - JPMorgan
Thiago Batista - UBS
Beatriz Abreu - Goldman Sachs
Renato Meloni - Autonomous
Nicolas Riva - Bank of America
Carlos Gomez-Lopez - HSBC
Andres Soto - Santander
Natalia Corfield - JP Morgan
Edson Murguia - SummaCap
Tejkiran Kannaluri - White Oak Capital
Presentation
Operator
Good morning. I'm Tomas Lozano, Head of Corporate Development, Investor Relations and ESG. Welcome to Grupo Financiero Banorte First Quarter Earnings Call. I would like to start by thanking our investors for their feedback throughout the year, which has helped us to consistently improve our recently launched 2023 annual report. This year we added a supporting document which will help you to measure the Group's progress across the main financial and non-financial indicators.
We will begin today's presentation with our CEO, Marcos Ramirez, who will provide a brief context of the macroeconomic environment that contributed to the results of the quarter, followed by the main results of the bank and the subsidiaries, including Rappi and [Bineo] (ph), ending with an update on sustainability. Then Rafael Arana, our COO, will provide details on the NIM evolution, the continued efforts to reduce balance sheet sensitivity, as well as a positive result regarding asset quality and efficiency for the group, among other relevant updates.
Please note that today's presentation may include forward-looking statements that are subject to risk and uncertainties, which may cause actual results to differ materially. On Page 2 of our conference call deck, you will find our full disclaimer regarding forward-looking statements. Thank you.
Marcos, please go ahead.
Marcos Ramirez
Thank you, Tomas. Good morning and thank you for joining us today. The first quarter of the year evolved with good overall dynamics in our core businesses and solid performance across all the subsidiaries. Well within the guidance ranges that we announced at the beginning of the deal. Despite a more cautious business environment brought by the electoral periods in Mexico and the US, we see a good economic momentum driven by domestic demand. Investments are still supported by ongoing government spending and private investment related to mutual, whereas high-frequency data for private consumption show a dynamic economy in the first quarter of the year, supported by remittances still at historical highs, better employment figures, and a dynamic lending activity.
Under these conditions, we hold a positive view of the Mexican economy, maintaining our GDP growth expectation for the year at 2.4%, with a stronger first half of the year followed by a softer second semester with some headwinds, such as lower government spending and potentially weaker external demand from a deceleration in the global economy. Annual headline inflation continues to show a moderately climate, despite a still challenging price output. Our year end forecast for inflation stands at 4.3%, still far from the Central Bank's target of 3%. So we expect tight monetary conditions for the rest of 2024....
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Grupo Financiero Banorte, S.A.B. de C.V. (GBOOF) Q1 2024 Earnings Call Transcript