Regional S.A.B (RA) Corporate presentation summary

Financial performance and growth

• Total loan portfolio grew 9% YoY to MXN 197.1 billion, with demand and time deposits up 14% and 21% respectively.

• Net income declined 7% YoY to MXN 1.52 billion, while NIM decreased by 45 bps to 6.1%.

• ROAE and ROAA dropped to 18.4% and 2.4%, respectively, but efficiency ratio increased to 43.0%.

• Financial margin rose 3% YoY to MXN 3.8 billion, with non-financial income up 5%.

• Capitalization ratio improved to 15.7%, reflecting a robust capital position.

Strategic positioning and business model

• Operates two main platforms (Banregio and Hey Banco) covering wholesale, SME, retail, and digital banking segments.

• Focuses on market saturation, digital innovation, and infrastructure development for sustainable growth.

• Diversifies into profitable sectors like manufacturing, agriculture, and tourism while maintaining asset quality.

• Emphasizes cross-selling, customer experience, and multi-country expansion capabilities.

• Maintains a competitive and diversified funding structure, with core deposits split between businesses and individuals.

Asset quality and risk management

• NPL ratio improved to 1.3%, outperforming industry standards.

• Cost of risk remained stable at 1.0%, with a coverage ratio of 146.2%.

• Strong risk management practices and high asset quality across all segments.

• Portfolio diversification supports resilience, with real estate, commerce, and manufacturing as key sectors.