Gentera (GENTERA) Q1 2025 earnings summary

Executive summary

• Achieved record net income of Ps. 2,221 million in 1Q25, up 47.3% year-over-year, with strong growth in clients and loan portfolio, serving over 5.8 million people and supported by digital transformation and operational efficiency initiatives.

• Banco Compartamos, Compartamos Banco Perú, and ConCrédito all posted double-digit loan portfolio and net income growth, with improved asset quality and robust capital ratios.

• Net income trends suggest performance will exceed initial guidance, with a potential upward revision in the next quarter.

• Leadership transitions in Peru and board changes, with new appointments to support ongoing transformation.

• Approved dividend payment of Ps. 2,401.8 million, equivalent to 40% of 2024 net income, to be paid in two installments in 2025.

Financial highlights

• Total loan portfolio grew 26.3% year-over-year to Ps. 82,725 million; Banco Compartamos up 27.0%, Compartamos Perú up 25.9%, ConCrédito up 21.4%.

• Net income reached Ps. 2,221 million, a 47.3% increase year-over-year; controlling company net income up 49.2%.

• Interest income rose 19.9% to Ps. 11,206 million; net interest margin stable at 39.5%; NIM after provisions at 29.3%.

• Operational expenses increased 20% year-over-year, mainly due to business growth and sales force expansion.

• Efficiency ratio improved to 62.8% from 67.6% in 1Q24.

Outlook and guidance

• Double-digit loan portfolio growth expected to continue, supported by strong demand in Mexico and Peru.

• EPS expected at the high end of guidance, with possible 5% upside; ROE for 2025 expected around 22%, with Q1 at 26.3%.

• Ongoing digitalization and modernization initiatives to drive operational efficiency and profitability.

• Guidance may be revised after Q2, pending further macro and business trend analysis.

• Cost of risk guidance maintained at 13%, with potential for improvement.