Gentera (GENTERA) Q3 2024 earnings summary

Executive summary

• Achieved record net income of Ps. 4,549 million for the nine months, up 19.1% year-over-year, and a record loan portfolio of Ps. 75,401 million, up 25% year-over-year, serving 5.58 million clients.

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

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

• Focus on financial inclusion, social impact, and ESG commitments, benefiting over 200,000 vulnerable people.

• Announced CEO succession at Banco Compartamos and confirmed a second dividend payment for the year.

Financial highlights

• Interest income grew 23.4% year-over-year to Ps. 10,211 million; net interest income up 24%.

• Net income for 3Q24 was Ps. 1,749 million, a 29.6% increase year-over-year; EPS for the quarter was Ps. 1.04, up 32.7%.

• Net fees reached Ps. 1,323 million in 3Q, up 46.7% year-over-year, mainly from insurance business.

• Operating expenses for the nine months were Ps. 14,066 million, up 12.4% year-over-year, below guided growth.

• Efficiency ratio improved to 66.0% from 69.6% in 3Q23.

Outlook and guidance

• Expect to close the year 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.

• Cost of risk expected to normalize around 12% next year, barring extraordinary events.

• Dividend payout policy of 40% expected to be sustained.

• Focus remains on expanding financial services, digitalization, and maintaining strong capital ratios.