Grupo Financiero Banorte SAB, Mexico’s second-largest publicly traded bank, rallied the most in a week after entering a consulting agreement with International Business Machines Corp. (IBM:US)
The stock advanced 2.2 percent to 93.53 pesos at the close of Mexico City trading. It was the second-biggest advance on the Mexican IPC index of stocks, which fell 0.1 percent.
The 10-year agreement will allow Mexico City-based Banorte to cut costs as a percentage of revenue while increasing the bank’s return on equity to more than 20 percent, the companies said in a statement today on PR Newswire. Banorte’s ROE in 2012 was 14.3 percent, according to its year-end report.
“This is very good news,” Rafael Escobar, an analyst with Vector Casa de Bolsa SA in Mexico City who rates the shares buy, said in a telephone interview. “The investments in technology will be useful to Banorte.”
Under the agreement, Armonk, New York-based IBM will provide consulting, information technology and research and development to create a “client-centric banking model” for Banorte, according to the statement,
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