Regional S.A.B (RA) Q1 2026 earnings summary

Executive summary

• Net income for 1Q26 was $1,515 million pesos, down 7% year-over-year, reflecting disciplined execution amid a challenging Mexican macroeconomic environment.

• Total assets grew 13% year-over-year to $287,969 million pesos, with the total loan portfolio up 9% to $197,120 million pesos.

• Core deposits rose 13% year-over-year to $199,047 million pesos, with time deposits up 21%.

• Hey Banco completed its spin-off, now operating independently and reaching profitability.

• Banco Regional generated 76% of total net income, with other subsidiaries contributing the remainder.

Financial highlights

• Financial margin increased 3% year-over-year to $3,826 million pesos, but fell 5% sequentially.

• Operating income for 1Q26 was $2,120 million pesos, down 4% year-over-year.

• Non-interest income reached $1,093 million pesos, with net fees growing 5% year-over-year and insurance income up 41%.

• Non-interest expenses totaled $2,020 million pesos, up 11% year-over-year, mainly due to technology and expansion.

• Efficiency ratio stood at 43% at the end of 1Q26, up from 40.3% a year ago.

Outlook and guidance

• Net interest margin (NIM) expected to recover gradually, but to the lower end of guidance (around 6%) for the year.

• Loan growth guidance remains high single digits (8-9%), with Hey Banco expected to maintain 20% growth.

• Provisioning expected to remain between 0.9% and 1% for the full year.

• OpEx growth projected in the low teens for the year, with expense growth moderating as investment cycle matures.

• Dividend policy remains aligned with operating results, capital needs, and growth estimates.