MEXICO CITY, Nov 4 (Reuters) -

Mexican lender Banorte cut its 2025 net income

outlook as it reported its third-quarter results on Tuesday, in

which it posted a 9% profit dip partly because of the divestment

of its digital bank Bineo, as well as a riskier loan book.

Banorte, which owns one of the country's largest banks and

pension funds, lowered its 2025 net income guidance to 58.2-59.2

billion pesos ($3.17-$3.22 billion) from an earlier level of

59.6-62.1 billion pesos and revised its return on equity to

22%-23% from 21.5%-23%, citing the impairment of Bineo.

Banorte agreed to sell its digital bank unit Bineo to

financial technology firm Klar in September, as part of a larger

overhaul of its digital strategy.

The group recorded "an initial impairment loss" of 1.31

billion pesos from Bineo and de-consolidated the unit from its

results. It also reported a new higher-risk Stage 3 commercial

loan, prompting it to raise its provisions.

The lender also widened its loan growth forecast to 6%-11%

from 8%-11%, citing government loans.

However, it edged up its net interest margin (NIM), a key

profitability metric for banks, to 6.2%-6.5% from a prior

forecast of 6.1%-6.4%.

"We see Banorte's results as weak," analysts at Santander

said. "We continue to note downside risk to consensus estimates

in 2026 based on weaker-than-expected growth in 2025."

RISKIER LOANS

Banorte's net profit of 13.01 billion pesos ($710 million)

fell short of an LSEG-compiled estimate of 14.44 billion pesos,

while total revenue of 40.86 billion pesos beat a forecast of

39.67 billion pesos.

Net interest income, the difference between what banks earn

on loans and dole out in deposits, grew 2% year-over-year

supported by a larger loan book, higher loan origination, a

consumer-focused portfolio mix, and consistent funding cost

optimization.

Total provisions rose 57% in the quarter compared to a year

earlier, largely due to higher reserves for the commercial loan

that was classified as a higher-risk Stage 3 transaction.

Third-quarter Stage 3 loans reached 16.75 billion pesos, up

from 11.35 billion pesos a year earlier, primarily in the

commercial and mortgage portfolios. Banorte said this was driven

by isolated client cases rather than broader trends.

Return on equity ended September at 20.1%, down from 22.9% a

year earlier.

($1 = 18.3694 Mexican pesos)