Regional B de C : Corporate Presentation for this 3Q23

Regional S.A.B. de C.V.

Corporate Presentation | November 2023

Key Figures

	3Q22
Profitability
Net Income QTR	1,303
Net Income YTD	3,608
NIM LTM	5.6%
NIM of Total Loans LTM	6.7%
ROAE LTM	19.5%
ROAA LTM	2.5%
Efficiency Ratio LTM	44.9%
Growth
Time Deposits 1	53,756
Demand Deposits	71,759
Shareholders Equity	23,921
Total Loan Portfolio	126,079
Risks
NPL Ratio	1.3%
Capitalization Ratio 2	15.2%

3Q23

1,563

4,051

6.2%

7.7%

20.9%

2.4%

41.7%

81,019

70,701

28,003

151,812

1.4%

15.2%

Growth

YoY

20%

12%

60 b.p. 107 b.p. 136 b.p. (11 b.p.) (320 b.p.)

51%

(1%)

17%

20%

5 b.p. (3 b.p.)

1 Time Deposits Includes Cedes + Promissory Notes

2

2 Capitalization ratio as of August 2023

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 proprieto|rs
▪ Two platforms covering all segments	▪	Payments
with high value growth.
	Marketplace
	▪
	▪	Banking as a service		5

Our

Present

During 3Q23, Regional delivered exceptional results, allowing us to expand our customer base and maintain high cross-selling levels, resulting in an increase of 20% YoY of net income.

Total Loan

Portfolio

20% growth, led by the

SMEs and consumer

portfolios

Net

Income

The Financial Margin

expanded 29% and Net

Incomer of 20%.

Core

Deposits

21% expansion with LDR

standing at 100%

NPL

Ratio

Strong asset quality, with it at 1.4%, with a quarterly cost of risk of 0.8%

Non-financial

Income

Trust Business 49%

Insurance 42%

Cards and Merchant 43%

598k active clients

1.8 products per client,

LTV of $6,396

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.