MEXICO CITY, July 22 (Reuters) - Mexican lender Banorte

on Tuesday reported a 4% bump in its

second-quarter net profit, boosted by an expanding loan book.

Net profit for the period came up to 14.62 billion pesos

($779.09 million), below the 15.01-billion-peso estimate from

analysts polled by LSEG.

Net interest income, the difference between what banks

earn on loans and dole out in deposits, grew 12% year-over-year

on larger loan book and a reduction in funding costs.

In June, Mexico's central bank

lowered its benchmark interest rate

by 50 basis points to its lowest level in nearly three

years.

Commercial loans were up nearly 11% compared to the

year-ago quarter and corporate loans leaped 16.7%, while

government loans slid 16%.

Return on equity grew 29 basis points year-over-year to

23.6%.

($1 = 18.7654 pesos at end-June)