Regional S.A.B. de C.V.
Corporate Presentation | April 2024
Key Figures
1Q23 | |
Profitability | |
Net Income QTR | 1,187 |
NIM LTM | 6.2% |
NIM of Total Loans LTM | 7.7% |
ROAE LTM | 21.0% |
ROAA LTM | 2.5% |
Efficiency Ratio LTM | 43.2% |
Growth | |
Time Deposits | 62,366 |
Demand Deposits | 74,474 |
Shareholders Equity | 26,302 |
Total Loan Portfolio | 143,298 |
Risks | |
NPL Ratio | 1.2% |
Capitalization Ratio 1 | 15.4% |
1Q24
1,615
6.1%
7.6%
22.0%
2.7%
39.5%
84,880
72,629
29,934
160,795
1.4%
15.7%
Growth
YoY
36% (5 b.p.) (5 b.p.)
- b.p.
- b.p.
(373 b.p.)
36%
(2%)
14%
12%
- b.p.
- b.p.
1 Capitalization ratio as of February 2024
2
What sets us apart
Our strengths
Strong growth potential with specialized attention in all banking segments through our two main channels
Competitive and diversified funding structure
Intensive digital initiatives to enhance our digital channels and achieve a highly effective operation
Attractive and consistent dividend payments without compromising growth
Experienced management and corporate governance
We combine the real and digital worlds like no other company can
Uniquely positioned for accelerated high value
growth…
- Business
- Large
- Middle Market
- Small
- Individuals
- Private bank
- Mass affluent
- Well positioned branding in all segments we attend.
- Unique customer experience in branch, through RMs.
- Ample room to growth new clients and continue to cross-sell to our customer base.
▪ Ample funding and capital structures
to grow fast and efficiently. | |||||
▪ We have a highly efficient, scalable | ▪ | Individuals | ▪ | The only multi-segment and multiproduct full | |
and adequate models. | ‒ | Mass market | digital bank in Mexico. | ||
▪ Right strengths and tools to gain | ▪ | Business | ▪ | Scalable and efficient platform. | |
market share and become a relevant | |||||
Small | |||||
player in the Mexican financial | ‒ | ▪ | Multi-country expansion capabilities. | ||
system. | ‒ | Sole proprietors | |||
▪ Two platforms covering all segments | ▪ | Payments | |||
with high value growth. | |||||
Marketplace | |||||
▪ | |||||
▪ | Banking as a service | 5 |
Our
Present
During 1Q24, Regional's quarterly earnings have continued to demonstrate robust growth, with a net income increase of 36% YoY.
Total Loan
Portfolio
12% growth, led by the
SMEs and consumer
portfolios.
Net
Income
Net Income grew 36% to
1.6 million pesos, a new
high.
Core
Deposits
15% expansion with LDR
standing at 102%.
Efficiency
Ratio
Efficiency ratio remains
below the 38.2%, expenses grew 4%.
Non-financial
Income
Trusts 46%
FX Income 23%
Merchant Business 21%
530k active clients
1.9 products per client,
LTV of $5,268.
6
Leading the financial services transformation
1 | Strengthening our geographic footprint and taking advantage of our digital channels to reach and serve a | |
broader client base. | ||
2 | Promoting financial wellness and reducing products complexity to become a leading institution in the | |
Mexican financial system. | ||
Creating sustainable growth through an unrivalled offer and groundbreaking platforms
3 | Holistic product offering with successful cross-selling results that will be maximized through our |
ability to design flexible and intuitive products beyond traditional banking. | |
4 | Optimal position to accelerate our revenue generation as a result of our solid fundamentals, |
material growth potential and new business opportunities. |
5 Strong company culture with innovation as a pillar for long term value generation.
6 | Modernization of our core infrastructure and attention models to establish technology as a |
differentiator to make our commercial efforts and operating processes more efficient. | |
7 | Proprietary technology, | solid development team | and recurring | investments that | will reflect | into | |
sustainable customer attraction, an unmatched user experience and lower cost of service. | |||||||
8 | Continuously-improving funding | structure, data leveraged | expense and | risk management | initiatives | that | |
reinforce profitability of our core business. | 7 | ||||||
Regional's Strategy
Commercial
Development
- Saturating the market in the segments we serve.
- Diversification in profitable industries without compromising asset quality.
- Developing commercial structures for sustainable growth.
Innovation,
Disruption and
Infrastructure
- Data leverage for commercial and risk intelligence.
- Design and development of proprietary technology and operating processes.
- Infrastructure synergies across all of our business segments.
- Development of technological platforms and processes as a service.
Corporate
Governance and company culture
- Strengthening our leadership and talent base through succession planning and a redesigned organizational structure.
- Constant evaluation in Corporate Committees, Boards of Directors and Risk Management practices.
- Business practices aligned to sustainability standards.
8
Paving the way for long-term success
Maintaining robust growth and enhancing our market penetration through technological modernization and geographic unification. This approach allows us to broaden our customer base while upholding exceptional asset quality.
Total Loans | Deposits | |
System CAGR 2019 - 3Q23: 6% | |||||
Regional CAGR 2019 - 3Q23: 10% | 151,812 | ||||
137,811 | |||||
107,933 | 110,416 | 117,952 | |||
2019 | 2020 | 2021 | 2022 | 3Q23 |
Cost of Funding%
7.0
6.3
4.8
System CAGR 2019 - 3Q23: 8% | |||||
Regional CAGR 2019 - 3Q23: 12% | 151,719 | ||||
126,480 | |||||
99,718 | 99,822 | 106,757 | |||
2019 | 2020 | 2021 | 2022 | 3Q23 |
NPL Ratio%
2.6 | |||
2.2 | 2.0 | 2.1 | 2.2 |
3.9
5.2
3.02.8
5.7
1.8 | 1.8 | |
1.4 | 1.3 | 1.4 |
2.32.4
2019 | 2020 | 2021 | 2022 | 3Q23 |
Regional | System |
2019 | 2020 | 2021 | 2022 | 3Q23 |
Regional | System | 9 | ||
Source: CNBV, September 2023
Unmatched profitability
Our distinctive value proposition entails delivering substantial bottom-line growth and operational efficiencies by leveraging our exceptional relationship model and advanced technological capabilities.
Net Income 1 | Efficiency Ratio% 1 | ||||||||
System CAGR 2019 - 3Q23: 14% | |||||||||
Regional CAGR 2019 - 3Q23: 11% | |||||||||
4,982 | 5,425 | 53.5 | |||||||
52.3 | |||||||||
3,675 | 3,556 | 49.1 | 47.8 | 48.4 | |||||
2,952 | |||||||||
46.5 | |||||||||
45.8 | |||||||||
42.4 | 43.4 | ||||||||
41.7 | |||||||||
2019 | 2020 | 2021 | 2022 | 3Q23 | 2019 | 2020 | 2021 | 2022 | 3Q23 |
ROAA% 1 | ROAE% 1 | Regional | System | ||||||
2.7 | 2.6 | 20.1 | 21.2 | 20.9 | |||||
2.4 | |||||||||
2.2 | |||||||||
2.0 | |||||||||
15.3 | |||||||||
14.0 | 18.7 | ||||||||
2.2 | 17.2 | ||||||||
2.0 | |||||||||
1.8 | 15.4 | ||||||||
14.4 | |||||||||
1.4 | |||||||||
1.1 | |||||||||
9.6 | |||||||||
2019 | 2020 | 2021 | 2022 | 3Q23 | 2019 | 2020 | 2021 | 2022 | 3Q23 |
Source: CNBV, September 2023 | Regional | System | Regional | System | 10 | ||||
1 Last Twelve Months.
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Disclaimer
Regional SAB de CV published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 18:28:02 UTC.