Latest news with #foreignexchange
Yahoo
13 hours ago
- Business
- Yahoo
Mexico's Banorte warns FX, potential dividend could weigh on full-year results
By Natalia Siniawski MEXICO CITY (Reuters) -Executives at Mexican lender Banorte on Wednesday warned that foreign-exchange volatility and a potential dividend payout could weigh on the company's performance for the remainder of the year. The cautionary outlook came a day after the bank reported a 4% rise in second-quarter net profit, bolstered by double-digit growth in its loan portfolio. Banorte's shares rose 3.5% during the analyst call. On the call, executives said a strengthening peso could dent results by reducing the value of income generated in U.S. dollars, though they maintained full-year guidance. They noted that a peso level of 17 or 18 to the dollar would add pressure, while a move above 20 would be beneficial. The bank's forecast is for the peso to ease toward 19 per greenback by year-end. This outlook is based on expectations that Mexico's central bank will cut interest rates by 100 basis points this year, outpacing an expected 50-basis-point reduction in the U.S., which would narrow the rate differential and likely weigh on the peso. Executives added that they were analyzing a dividend payout which could be announced in the third quarter to reward shareholders, though it would mean less cash on hand to grow the loan book. Despite the headwinds, which also include uncertainty around reviews of the U.S.-Mexico-Canada trade pact, Chief Financial Officer Rafael Arana de la Garza said that the bank is well-positioned to manage stress. Sign in to access your portfolio
Yahoo
13 hours ago
- Business
- Yahoo
Mexico's Banorte warns FX, potential dividend could weigh on full-year results
By Natalia Siniawski MEXICO CITY (Reuters) -Executives at Mexican lender Banorte on Wednesday warned that foreign-exchange volatility and a potential dividend payout could weigh on the company's performance for the remainder of the year. The cautionary outlook came a day after the bank reported a 4% rise in second-quarter net profit, bolstered by double-digit growth in its loan portfolio. Banorte's shares rose 3.5% during the analyst call. On the call, executives said a strengthening peso could dent results by reducing the value of income generated in U.S. dollars, though they maintained full-year guidance. They noted that a peso level of 17 or 18 to the dollar would add pressure, while a move above 20 would be beneficial. The bank's forecast is for the peso to ease toward 19 per greenback by year-end. This outlook is based on expectations that Mexico's central bank will cut interest rates by 100 basis points this year, outpacing an expected 50-basis-point reduction in the U.S., which would narrow the rate differential and likely weigh on the peso. Executives added that they were analyzing a dividend payout which could be announced in the third quarter to reward shareholders, though it would mean less cash on hand to grow the loan book. Despite the headwinds, which also include uncertainty around reviews of the U.S.-Mexico-Canada trade pact, Chief Financial Officer Rafael Arana de la Garza said that the bank is well-positioned to manage stress. Sign in to access your portfolio
Reuters
13 hours ago
- Business
- Reuters
Mexico's Banorte warns FX, potential dividend could weigh on full-year results
MEXICO CITY, July 23 (Reuters) - Executives at Mexican lender Banorte ( opens new tab on Wednesday warned that foreign-exchange volatility and a potential dividend payout could weigh on the company's performance for the remainder of the year. The cautionary outlook came a day after the bank reported a 4% rise in second-quarter net profit, bolstered by double-digit growth in its loan portfolio. Banorte's shares rose 3.5% during the analyst call. On the call, executives said a strengthening peso could dent results by reducing the value of income generated in U.S. dollars, though they maintained full-year guidance. They noted that a peso level of 17 or 18 to the dollar would add pressure, while a move above 20 would be beneficial. The bank's forecast is for the peso to ease toward 19 per greenback by year-end. This outlook is based on expectations that Mexico's central bank will cut interest rates by 100 basis points this year, outpacing an expected 50-basis-point reduction in the U.S., which would narrow the rate differential and likely weigh on the peso. Executives added that they were analyzing a dividend payout which could be announced in the third quarter to reward shareholders, though it would mean less cash on hand to grow the loan book. Despite the headwinds, which also include uncertainty around reviews of the U.S.-Mexico-Canada trade pact, Chief Financial Officer Rafael Arana de la Garza said that the bank is well-positioned to manage stress.
Yahoo
18 hours ago
- Business
- Yahoo
India cenbank net bought $1.76 billion in forex market in May, bulletin shows
MUMBAI (Reuters) -The Reserve Bank of India (RBI) bought a net of $1.76 billion in the foreign exchange market in May, data released on Wednesday as part of the central bank's monthly bulletin showed. The RBI said it purchased $9.1 billion and sold $7.3 billion during the month. In April, the central bank had sold a net of $1.66 billion. The Indian rupee had declined by over 1% in May, pressured by persistent uncertainty over U.S. trade policies, an armed conflict between India and Pakistan, and likely dollar-buying interventions by the central bank. The RBI's net outstanding forward sale stood at $65.2 billion as of end-April, compared with a net sale of $72.6 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The rupee closed little changed at 86.4075 per U.S. dollar on Wednesday. Sign in to access your portfolio
Reuters
21 hours ago
- Business
- Reuters
India cenbank net bought $1.76 billion in forex market in May, bulletin shows
MUMBAI, July 23 (Reuters) - The Reserve Bank of India (RBI) bought a net of $1.76 billion in the foreign exchange market in May, data released on Wednesday as part of the central bank's monthly bulletin showed. The RBI said it purchased $9.1 billion and sold $7.3 billion during the month. In April, the central bank had sold a net of $1.66 billion. The Indian rupee had declined by over 1% in May, pressured by persistent uncertainty over U.S. trade policies, an armed conflict between India and Pakistan, and likely dollar-buying interventions by the central bank. The RBI's net outstanding forward sale stood at $65.2 billion as of end-April, compared with a net sale of $72.6 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The rupee closed little changed at 86.4075 per U.S. dollar on Wednesday.
