Mexico’s Banorte reports Q2 net profit surges 34%

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Revenue for the group, which owns one of the country’s largest banks and pension funds, totaled 28.5 billion pesos in the second quarter, up 21% from a year earlier.

The company, which is among the potential bidders for Citigroup (NYSE:C)’s Mexican retail unit, said the positive results came despite a challenging macroeconomic environment, with low GDP growth expectations, inflationary pressures, restrictive monetary policies and an uncertain international outlook.

“Credit demand accelerated across all products, despite a restrictive rate cycle, and maintained sound risk metrics, that continue to perform ahead of our expectations,” the bank said in its report.

($1 = 20.1353 pesos at end-June)