Yahoo Finance

• Net Income: MXN1,604 million, a 3% increase year-on-year.

• Return on Average Equity: Expanded by 83 basis points year-on-year to 21.7%.

• Loan Growth: 30% year-on-year, outperforming the banking sector's 12% growth.

• Core Deposits: Increased 11% year-on-year compared to the sector's 9% expansion.

• Financial Margin: Expanded by 12% year-on-year and 4% quarter-on-quarter.

• Nonfinancial Income: Increased by 40% year-on-year.

• FX Fees: Rose 37% year-on-year.

• Card and Merchant Fees: Increased by 15% year-on-year.

• Insurance Fees: Increased by 11% year-on-year.

• Efficiency Ratio: 39.5%, a year-on-year contraction of 223 basis points.

• Branch Expansion: 22 new locations in the last 12 months, with plans for 20 additional branches in 2025.

• Operating Expenses: Grew 19% year-on-year.

• Preferred Banking Portfolio: Decreased by 3% year-on-year.

• SME Portfolio: Expanded by 40% year-on-year.

• Nonperforming Loans Ratio: Improved by 11 basis points year-on-year to 1.2%.

• Cost of Risk: Consolidated cost of risk at 1%, above the guidance range of 0.7% to 0.9%.

• Hey Banco Loan Portfolio: Net interest margin over the last 12 months of 7.2%.

• Hey Banco Efficiency Ratio: Increased to 69.3%, a 12% year-on-year improvement.

• Hey Pago Monthly Billing: Expanded by 21% year-on-year, reaching MXN12,027 million.

• Warning! GuruFocus has detected 1 Warning Sign with MEX:RA.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Regional SA de Cv (MEX:RA) reported a strong 30% year-on-year loan growth, significantly outperforming the banking sector's 12% growth.

• The company's net income for the quarter reached MXN1,604 million, marking a 3% increase year-on-year.

• Return on average equity expanded by 83 basis points year-on-year, reaching 21.7%.

• Nonfinancial income saw a notable 40% year-on-year increase, driven by effective cross-selling strategies.

• The efficiency ratio improved, standing at 39.5%, reflecting strong revenue growth outpacing operating expenses.

Negative Points

• Operating expenses grew 19% year-on-year, attributed to strategic investments in expansion and digital capabilities.

• The preferred banking portfolio decreased by 3% year-on-year, indicating challenges in the retail segment.

• Consolidated cost of risk stands at 1%, slightly above the guidance range of 0.7% to 0.9%, due to specific commercial cases.

• Hey Banco's active customer base decreased to 528,000, reflecting a strategic shift from rapid growth to profitability.

• The CASA ratio was temporarily impacted by a 4.5% decrease due to a strategic focus on optimizing funding costs.