MEXICO CITY, Reuters Mexico39;s Grupo Financiero Banorte reported on Tuesday a 9 hike in firstquarter net profit from the yearago period, citing growth in its loan book.

Net profit for the quarter hit 14.21 billion pesos 859.48 million, as its active loan book topped 1 trillion pesos for the thirdconsecutive quarter.

Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 10 yearoveryear on the larger loan book, which also benefited from higher interest rates.

Nearly all loan sectors showed doubledigit growth yearoveryear. Government loans, however, shrank 2.2 on electionyear restrictions, Banorte said.

Mexico39;s central bank lowered its benchmark interest rate from a historic high of 11.25 to 11 in March, the effects of which will be seen starting in the second quarter, Banorte said in a release.

Revenue for the group, which owns one of the country39;s largest banks and pension funds, totaled 37.038 billion pesos in the quarter, up 15 from a year earlier.

Return on equity grew 78 basis points yearoveryear to 22.2. The firm estimates a ROE between 21 and 22 for the year.

Nonfinancial expenses in the quarter grew 13 from the yearago period on growth initiatives such as Banorte39;s digital bank, Bineo.

Banorte launched Bineo in January, aiming to add 2.8 million new clients over the next five years.

1 16.5310 Mexican pesos at the end of March

Reporting by Kylie Madry; Editing by Valentine Hilaire and Leslie Adler…