Banorte in the spotlight: possible adjustment in net profit guidance sparks interest from investors

The Banorte Financial Group is under scrutiny by financial analysts after announcing the possibility of adjusting its net profit guidance in the coming quarters, based on the evolution of its share buyback program. This decision has generated expectations in the market and has piqued the interest of investors, who are closely monitoring the strategic decisions of the banking entity. According to statements from a company executive during a call with analysts, Banorte's net profit guidance for 2024 is currently in a range of between 56,400 million and 57,400 million Mexican pesos. However, this figure could be revised depending on how the share buyback program progresses in the following quarters. Furthermore, Banorte has reported that it has modified its long-term common equity target, establishing a new range of between 13% and 13.5%, compared to the previous range of 12% to 13%. This modification is justified by the volatile conditions of the current market and the recent presidential elections in the United States, which have generated uncertainty in the financial markets. Amidst this scenario, Banorte's shares have experienced a 2.09% decline on the Mexican stock exchange, reflecting market volatility and investors' reaction to the latest news related to the banking entity. This adjustment in the value of the shares comes one day after Banorte presented its results for the second quarter, in which it reported a 7.1% increase in net profit, reaching 14,018 million pesos. Despite this increase in net profit, Banorte's second-quarter results did not meet the expectations of analysts consulted by LSEG, which has raised some concern among investors and analysts in the financial sector. The uncertainty surrounding the possible revision of net profit guidance and the changes in the common equity level of the entity have contributed to the instability in the value of Banorte's shares in the stock market. In this context, financial sector experts are attentive to any new information that may arise regarding Banorte's strategic decisions and their impact on the financial results of the entity. The evolution of the global economy and market conditions will continue to be determining factors in the upcoming decisions that the Banorte Financial Group will make in its quest to maintain its competitive position and maximize its profitability in the Mexican banking sector.