October 13, 2008 / 2:45 AM / 10 years ago

Mexico's Banorte eyes record profits despite crisis

MEXICO CITY, Oct 12 (Reuters) - Banorte, Mexico’s fifth-largest bank, said on Sunday it is on track for record profits this year despite the deepening U.S. credit crisis.

Shares of Banorte bank plunged more than 20 percent on Friday after news of Mexican firms hit by steep losses in their derivatives positions, a result of a massive slump in the peso MXN= MEX01.

Banorte (GFNORTEO.MX) said it has little exposure to the companies that have run into trouble with their derivatives positions and reassured investors it has ample liquidity and capital.

“Banorte is on path to register another record year in profit generation,” the bank said in a statement.

On Friday, Banorte said it was not part of derivative operations with paper maker Corporacion Durango CODUSA.MX, retailer Comercial Mexicana (Comerci) COMEUBC.MX or Grupo Industrial Saltillo GISSA.MX, all of which disclosed deep financial troubles last week.

Banorte is the last big financial institution controlled by Mexican investors after a wave of acquisitions by major foreign players. (Reporting by Noel Randewich; Editing by Valerie Lee)

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