Banorte cuts 2012 loan growth to 10-15% on economic downturn

Tuesday, September 20, 2011

The US economy's slowdown has led Mexico's third biggest bank, Banorte, to reduce its 2012 loan growth forecast to 10-15% from 20%, bank executives said at a New York investment conference organized by Deutsche Bank.

Banorte's return on equity (ROE) is likely to remain below 20% until 2014, the executives added.

The bank expects to realize 80% of the synergies from this year's merger with smaller upmarket bank Ixe by the end of this year and to complete the integration by April 2012. Total cost savings from the deal are expected to reach 1.5bn pesos (US$114mn).

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