Gentera (GENTERA) Q3 2024 earnings summary

Executive summary

• Achieved record net income of MXN 4,549 million for the nine-month period, up 19.1% year-over-year, and served over 5.58 million clients.

• Total loan portfolio reached MXN 75.4 billion, a 25% year-over-year increase, with strong growth in Mexico and Peru.

• Banco Compartamos CEO succession announced, appointing Iván Mancillas to lead ongoing transformation.

• Solid capital position with Capital/Total Assets at 31.7% and Banco Compartamos ICAP at 31.1%.

• Focus on financial inclusion, social impact, and ESG commitments, with continued digital and product innovation.

Financial highlights

• 3Q24 net income reached MXN 1.749 billion, up 29.6% year-over-year; EPS for the quarter was MXN 1.04, up 32.7%.

• Interest income rose 23.4% year-over-year to MXN 10.2 billion; net commissions grew 55.4%.

• Operational expenses for the nine months were MXN 14.066 billion, up 12.4% year-over-year, below guided growth.

• NPL ratio at 3.56% in 3Q24, within the guided range; NIM for 3Q24 was 40.5%.

• Net margin after provisions was 28.6% in 3Q24.

Outlook and guidance

• Management expects to close 2024 at the mid-range of portfolio growth guidance and high end for EPS.

• Double-digit portfolio growth anticipated for next year, with fee income growth likely to outpace portfolio expansion.

• Asset quality expected to remain within a 3.5%-4.0% NPL range for the year.

• Dividend payout policy of 40% expected to continue next year.

• Ongoing focus on digital transformation, process modernization, and customer experience improvement.