UPDATE 2-Mexico’s Banorte rebounds from recession

* Banorte bounces back from recession

* Lower loan-loss provisions help results
(Recasts, adds detail on results)

MEXICO CITY, July 22 (BestGrowthStock) – Banorte bank showed strong
signs of recovery in the second quarter from Mexico’s recent
recession, posting a 26 percent rise in net profit from a year
earlier as it made fewer provisions against bad loans.

The Mexican bank said in a filing on Thursday its net
profit was 1.656 billion pesos ($128 million) during the
quarter.

Mexico’s banks were less affected by the global credit
crisis than many U.S. and European financial institutions
because their focus was primarily on traditional lending.

But they were pinched by rising loan defaults as falling
U.S. demand for Mexico’s exports threw the country into a deep
recession. Banking and lending have been slow to recover.

Banorte’s healthy loans rose 3 percent over the year-ago
quarter and grew 2 percent from March.

During the second quarter, Banorte’s past-due loans
declined 11 percent compared with the second quarter of 2009
and were 8 percent lower than in the first quarter.

Banorte set aside 1.337 billion pesos for loan-loss
reserves in the second quarter, 25 percent less than in the
first quarter.

Banorte shares ended 1.73 percent higher at 49.93 pesos on
Thursday before results were released.

Emerging from its deepest slump since the 1930s, Mexico’s
economy is expected to grow around 4.5 percent this year.

Investing

($1=12.94 at end-June)
(Reporting by Noel Randewich, editing by Bernard Orr)

UPDATE 2-Mexico’s Banorte rebounds from recession