Mexican universal bank Banorte has consistently gained market share in the highly competitive Mexican banking system along with sound business stability


The bank's business position has been gradually improving and is supported by 
its good revenue and business diversification, growing market shares, and 
positive trend in revenue growth, which provides sound business stability. As 
of June 30, 2017, Banorte held a 13.3% market share in terms of total 
consolidated loans (up from 13.1% six months earlier) and 13.9% in terms of 
total deposits (up from 13.7% at the end of 2016). This has allowed Banorte to 
become the third-largest bank in Mexico. These factors have prompted us to 
revise the bank's SACP to 'a-' from 'bbb+'.

The ICR on the bank are also supported by its strong internal capital 
generation and sound financial performance that will keep our risk-adjusted 
capital (RAC) ratio at around 11.4% over the next 18-24 months. The ratings 
also account for Banorte's good asset quality, with nonperforming assets 
(NPAs) and credit losses ratios that are in line with those of the Mexican 
banking system, and a funding structure that mostly leverages on a stable 
deposit base with a liquidity position that provides a comfortable cushion to 
meet its short-term obligations.

Over the past 12 to 24 months, Banorte has improved its business position, 
illustrated by:
  • Gains in market share despite fierce competition among the top four banks in the country;
  • Business diversification that underpins a growing and diversified revenue base;
  • Strong profitability metrics, including return on equity (ROE);
  • An increased share in consumer loans, which normally have better margins; and
  • A growing market share in customer deposits, which also show business stability resilience