Gentera (GENTERA) Q3 2024 earnings summary

Executive summary

• Net income for the nine-month period reached MXN 4,549 million, up 19.1% year-over-year, with 3Q24 net income at MXN 1,749 million, a 29.6% increase year-over-year.

• Total loan portfolio hit a record MXN 75.4 billion, up 25% year-over-year, serving 5.58 million clients, a 16.5% increase.

• Subsidiaries Banco Compartamos, Compartamos Financiera, and ConCrédito all posted double-digit portfolio growth.

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

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

Financial highlights

• Interest income rose 23.4% year-over-year to MXN 10.2 billion; net interest income up 24%.

• Net fees grew 55.4% year-over-year to MXN 1.17 billion in 3Q, mainly from insurance business.

• Provisions for loan losses in 3Q were MXN 2.49 billion, with a coverage ratio of 231%.

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

• EPS for 3Q24 was MXN 1.04, up 32.7% year-over-year.

Outlook and guidance

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

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

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

• Management reaffirmed commitment to financial inclusion and ongoing process modernization.

• Dividend payment of MXN 0.60 per share (Ps. 944.075 million) scheduled for November 2024.