Banco Actinver S.A., Institución de Banca Múltiple Grupo Financiero Actinver (INFRAEX 18) Q4 2023 earnings summary

Executive summary

• FY23 net income reached MXN 1,134m, up 19% YoY; 4Q23 net income was MXN 365m, down 9% YoY.

• Assets under management and custody totaled MXN 692bn; mutual fund AUM was MXN 211bn at 4Q23, including fund-of-funds assets.

• Strategic priorities include profitable growth through customer segmentation, digital transformation, alliances and operating efficiency.

Financial highlights

• 4Q23 total revenues were MXN 4,777m, up 19% YoY; net revenues were MXN 1,890m, up 5%.

• FY23 total revenues reached MXN 17,905m, up 39%; net revenues were MXN 6,743m, up 12%.

• 4Q23 operating expenses rose 9% YoY to MXN 1,394m; net operating income fell 7% to MXN 496m.

• FY23 net operating income was MXN 1,619m, up 18%; operating expenses increased 10% to MXN 5,124m.

• 4Q23 financial margin rose 17% to MXN 584m; adjusted margin increased 20%, provisions declined 14%, and net fees and commissions rose 11% to MXN 926m.

Outlook and guidance

• Priorities include scaling profitably through customer segmentation and digital transformation, improving the investment experience and growing high-net-worth, affluent and digital client segments.

• 2024 outlook anticipates slower economic growth and election-related volatility; focus areas include advisor training, digital tools, customer experience and higher profitability.

• Nearshoring and technological innovation are potential opportunities, with continued attention to economic and political developments.