Q3 2024 Regional SAB de CV Earnings Call Transcript
Key Points
- Regional SA de Cv (MEX:RA) reported a strong 30% year-on-year loan growth, significantly outperforming the banking sector's 12% growth.
- The company's net income for the quarter reached MXN1,604 million, marking a 3% increase year-on-year.
- Return on average equity expanded by 83 basis points year-on-year, reaching 21.7%.
- Nonfinancial income saw a notable 40% year-on-year increase, driven by effective cross-selling strategies.
- The efficiency ratio improved, standing at 39.5%, reflecting strong revenue growth outpacing operating expenses.
- Operating expenses grew 19% year-on-year, attributed to strategic investments in expansion and digital capabilities.
- The preferred banking portfolio decreased by 3% year-on-year, indicating challenges in the retail segment.
- Consolidated cost of risk stands at 1%, slightly above the guidance range of 0.7% to 0.9%, due to specific commercial cases.
- Hey Banco's active customer base decreased to 528,000, reflecting a strategic shift from rapid growth to profitability.
- The CASA ratio was temporarily impacted by a 4.5% decrease due to a strategic focus on optimizing funding costs.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Regional third-quarter 2024 earnings conference call. We are joined today by Manuel Rivero Zambrano, Chief Executive Officer of Regional; Enrique Navarro RamÃÂrez, Chief Financial Officer; and Alejandro Lobeira, Head of Strategy and Planning and Investor Relations.
(Operator Instructions) Please be advised that today's conference call is being recorded. I will now like to hand the conference over to your speaker today, Manuel Rivero Zambrano. Thank you, and please go ahead.
Good morning, everyone. I hope hearing you and your families are healthy and well. We're pleased with our third-quarter performance as our loan portfolio continues to outpace industry standards, and our profitability steadily rises. Our project keeps delivering solid results by seizing opportunities presented about Mexico's economic expansion, (inaudible) trends, a robust labor market and a favorable demographic
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