Mexico’s Banorte posts 4% profit bump as loan book grows

MEXICO CITY (Reuters) -Mexican lender Banorte on Tuesday reported a 4% bump in its second-quarter net profit, boosted by an expanding loan book.

Net profit for the period came up to 14.62 billion pesos ($779.09 million), below the 15.01-billion-peso estimate from analysts polled by LSEG.

Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 12% year-over-year on larger loan book and a reduction in funding costs.

In June, Mexico’s central bank lowered its benchmark interest rate by 50 basis points to its lowest level in nearly three years.

Commercial loans were up nearly 11% compared to the year-ago quarter and corporate loans leaped 16.7%, while government loans slid 16%.

Return on equity grew 29 basis points year-over-year to 23.6%.

($1 = 18.7654 pesos at end-June)

(Reporting by Kylie Madry and Natalia Siniawski)