July 23, 2020 / 10:18 PM / 17 days ago

UPDATE 1-Mexico's Banorte posts 25% drop in net profit as coronavirus weighs

(Adds details from report)

MEXICO CITY, July 23 (Reuters) - Mexico’s Grupo Financiero Banorte said on Thursday its net profits were 6.5 billion pesos ($283.9 million) during the second quarter, a drop of 25% from the same period a year earlier, as the coronavirus pandemic stung business.

“This quarter was fully immersed in the COVID-19 pandemic,” the group, which owns one of Mexico’s largest banks and pension funds, said in its earnings report.

Banorte said results were hit by having to set aside one-off reserves to cover the estimated impact of COVID-19 for the rest of 2020 and a significant part of next year.

It had also started write-offs in anticipation of loan portfolio deterioration once government support for consumers and small and medium enterprises ends, it said.

Still, the financial group reported total revenues rose over the period by 8% to 26.6 billion pesos.

$1= 22.9570 pesos at end-June Reporting by Noe Torres Editing by Dave Graham

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