MEXICO CITY, July 23 (Reuters) - Mexico's Grupo

Financiero Banorte reported on Tuesday a 7% climb

in second-quarter net profit from the year-ago period, citing

double-digit growth in its loan book.

Net profit hit 14.02 billion pesos ($766.59 million) as its

active loan book topped 1 trillion pesos for the fourth

consecutive quarter. The profit was slightly below an

LSEG-compiled estimate of 14.65 billion pesos.

Net interest income, the difference between what banks earn

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

the larger loan book, despite a lower benchmark interest rate,

Banorte said.

Mexico's central bank cut the rate to 11% from 11.25% in

March and has been holding it there since.

Commercial loans leaped nearly 12% from the year-ago quarter

while corporate loans were up 23% and government loans rose 11%.

Return on equity grew 236 basis points year-over-year to

23.3%.

Banorte launched its digital bank bineo in January, aiming

to sign up 2.8 million new clients over the next five years.

Executives on Tuesday declined to say how many accounts it had.