Gentera (GENTERA) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024, serving over 5.7 million clients, with a loan portfolio of Ps. 82,742 million, up 27.0% YoY, and net income of Ps. 6,462 million, up 27.9% YoY, surpassing guidance.

• Growth was driven by strong performance in Mexico and Peru, with all subsidiaries—Banco Compartamos, Compartamos Financiera, ConCrédito, Yastás, and Aterna—reporting double-digit portfolio and client expansion.

• Insurance business income now represents 10% of total income, with 17.3 million active policies, up 43% YoY, and six social bonds issued to date.

• Subsidiaries Banco Compartamos and ConCrédito posted strong double-digit growth; Peru operations stabilized and received a banking license effective January 2025.

• Modernization and digitalization initiatives have doubled average annual growth rates since 2019, supporting ongoing social impact.

Financial highlights

• Interest income grew 23.8% YoY to Ps. 40.2 billion; net interest income up 22.6% to Ps. 32.9 billion; NIM for 2024 was 39.8%.

• Net income for 2024 reached Ps. 6,462 million, up 27.9% YoY; EPS stood at Ps. 3.8, 27.1% above 2023 and 6% above guidance.

• NPL ratio at 3.93% in 4Q24, up from 3.44% in 4Q23; coverage ratio at 209.5%.

• Operational expenses increased 16.4% YoY to Ps. 19.8 billion, including a one-off Ps. 200 million amortization.

• Efficiency ratio improved to 68.2% for 2024, down from 70.7% in 2023.

Outlook and guidance

• 2025 guidance: loan portfolio growth of 13%-16%, EPS growth of 20%-24% (Ps. 4.55–4.70), and NIM around 39%.

• Operating expenses expected to grow 13% in 2025.

• Cost of risk projected at 13%; NPLs expected to move around 4% due to portfolio mix.

• Dividend payout policy maintained at 40%, with distributions in May and November, pending approval.

• Focus remains on digital transformation, operational efficiency, and expanding financial inclusion.