Banorte under financial scrutiny: Uncertainty due to profit guidance adjustment

The Banorte Financial Group is in the eye of the financial storm after announcing that it could adjust its net profit guidance in the coming quarters, due to its share buyback program. According to recent reports, the Mexican company has set its net profit guidance for 2024 in a range between 56.4 billion and 57.4 billion Mexican pesos. This announcement has generated some uncertainty among analysts and investors, who are closely monitoring the situation. During a call with analysts, a Banorte executive revealed the possibility of a revision in the net profit guidance, which would be conditioned by the performance of its share buyback program. This strategic decision could have a significant impact on the market's perception of the financial health of the banking institution, especially in a context marked by volatility and the U.S. presidential elections. Additionally, Banorte reported that it has modified its long-term common equity level target, raising it to a range between 13% and 13.5%, compared to the previous range of 12% to 13%. This measure is justified, according to the company, by the current unstable market conditions, which have created an environment of uncertainty and speculation in the financial sector. As a result of these announcements, Banorte's shares experienced a 2.09% decline in the Mexican stock market, reflecting investors' reaction to the news presented by the banking entity. This decline occurred shortly after the publication of the financial results for the second quarter, where Banorte reported a 7.1% increase in its year-on-year net profit, reaching 14.018 billion pesos, equivalent to around 766.5 million dollars. This figure, despite representing an increase compared to the same period the previous year, did not meet the expectations of the analysts consulted by the LSEG. This fact has generated even more uncertainty regarding Banorte's future performance and has highlighted the need to closely monitor the company's evolution in the coming quarters, especially in a global context marked by volatility and economic instability. In this sense, investors and analysts will be attentive to any moves by Banorte regarding its net profit guidance and its share buyback program, as these factors will be crucial in evaluating the direction the financial institution will take in the near future. Transparency and effective communication by the company will be key to dispelling doubts and generating confidence in the market, at a crucial moment for the Mexican and global banking sector.