Mexican lender Banorte’s net profit rose 4% in Q2, reaching 14.62 billion pesos, slightly below analyst expectations. Net interest income grew 12% due to a diversified portfolio and lower funding costs, offsetting a forex hit. The bank’s loan book showed double-digit growth, with strong performance in consumer, auto, and credit card loans.

Despite Mexico’s central bank cutting rates, Banorte’s total portfolio, excluding government loans, grew 13% year-on-year. Corporate and commercial loans saw double-digit growth, while government lending decreased. Return on equity increased to 23.6%, with a non-performing loan ratio of 1.1%. Banorte maintained its full-year guidance, projecting net income between 59.6 billion and 62.1 billion pesos.

Banorte’s CEO, Marcos Ramirez, confirmed the bank is ending relationships with firms targeted by the U.S. Treasury for money laundering concerns. The sanctions on three financial institutions had a ripple effect in Mexico’s banking sector. Banorte has strengthened its anti-money laundering standards and is unaware of investigations into other groups.

Read more at Yahoo Finance: Mexico’s Banorte posts 4% profit bump as loan book grows