Regional S.A.B (RA) Q1 2025 earnings summary

Executive summary

• Net income for 1Q25 reached MXN 1,633 million, up 1% year-over-year, with ROE/ROAE at 20.6% and stable profitability.

• Core deposits grew 12% year-over-year to MXN 176,464 million, with time deposits up 14%.

• Performing loans and leasing increased 12%-13% year-over-year, with commercial loans up 13% and personal loans up 8%.

• Financial margin rose 8% to MXN 3,723 million; Hey Banco reached break-even, driven by digital and payment growth.

• Efficiency ratio stood at 40.3%-40.4%, reflecting ongoing investments and operational expansion.

Financial highlights

• Operating income for 1Q25 was MXN 2,218 million, up 3% year-over-year.

• Non-financial/non-interest income grew 14%-16% year-over-year to MXN 1,040 million, with insurance fees up 28%.

• Net commissions and fees rose 13% to MXN 533 million; FX fees increased 14%.

• Administrative/non-interest expenses increased due to branch and technology investments.

• Total assets reached MXN 255,651 million, a 14% year-over-year increase.

Outlook and guidance

• Full-year guidance reiterated, expecting solid and sustainable growth through 2025.

• Loan growth guidance maintained at 10%-15%, with current growth at 13%.

• NIM expected to contract with policy rate reductions, but hedged by fixed-rate portfolios.

• OPEX growth expected to stabilize at 10%-12% for the year.

• Future results subject to economic, political, and regulatory risks.