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2023 Customer Awards: Grupo Financiero Banorte - Innovative Problem Solver
Fluorite | Level 6


Company: Grupo Financiero Banorte

Company background: Banorte, is a leading financial institution in Mexico, with an important business diversification and continuously seeking ways to be a key player in the banking landscape, offering a wide variety of traditional and digital products and services. Banorte is the only commercial bank, among the six largest institutions in Mexico, whose decisions are made locally without the influence of external parent companies, but also, Banorte is fully autonomous to develop internal models, the latter has proven to be an advantage in adapting with agility to the changes and alternatives presented by the Mexico’s financial sector environment.

Contact: Martha Patricia Martinez Piñon

Title: Balance Sheet Modelling & Risk Management

Country: México

Award Category: Innovative Problem Solver

Tell us about the business problem you were trying to solve?
Banks are exposed to several risks, including the risk of the impact on the banking book by changes in interest rates. Such risk is known as interest rate risk, and it is complex to measure it. To achieve it, the set of products in a bank balance sheet, have to be characterized or modelled.

How did you use SAS to solve that business problem? What products did you use and how did you use them?
The SAS infrastructure (SAS Enterprise Guide and SAS ALM) has given Banorte, the capacity of: characterize the attrition of non-maturing deposits, capture the optionality of mortgages, measure and manage duration risk of assets and liabilities, but also to comply with international best practices

What were the results or outcomes?
The success of SAS balance sheet modelling is measured by the solid management of risk, which leads to well-informed decision taking in Banorte’s ALCO. The latter by capturing in SAS analysis each piece of the balance sheet, which guided us to conclusions on natural hedges or duration hedges.

Why is this approach innovative?
In Mexico, an exhaustive modelling (piece by piece) of a bank balance sheet in a single engine represents a breakthrough, and it has direct implications on a better management of risks, but also it has a direct impact on the bank’s financial results.

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