Gentera (GENTERA) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results with net income of Ps. 6,462 million, up 27.9% year-over-year, and a loan portfolio of Ps. 82,742 million, up 27.0%, serving 5.7 million customers.

• Growth driven by strong performance in Mexico and Peru, with all subsidiaries reporting portfolio and client expansion.

• Over 17.3 million active insurance policies, up 43%, and six social bonds issued to date.

• Board proposes dividend payout of up to 40% of 2024 net income, to be paid in two installments.

• Compartamos Financiera received authorization to operate as a bank in Peru as of January 2025.

Financial highlights

• Net interest income rose 22.6% to Ps. 32.9 billion; NIM for 2024 at 39.8%, after provisions at 28.7%.

• Net fees grew 61.8% to Ps. 4.65 billion, driven by insurance and non-recurring benefits.

• Operating expenses increased 16.4% to Ps. 19.8 billion; 4Q24 included a Ps. 200 million one-time amortization.

• Provisions for loan losses rose 42% to Ps. 9.2 billion; coverage ratio at 209.5%.

• 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).

• NIM expected around 39%, cost of risk at 13%, operating expenses to grow 13%.

• ROE expected at or above 21.5%.

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

• Dividend payout policy maintained at 40%, with two payments in May and November.