Regional, S.A.B. de C.V. presents, for informative purposes only, the internal financial statements for the period ended June 30, 2021. Also, and considering that the public company participated in a corporate restructuring through a merger in which it acted as a merging company with Banregio Grupo Financiero S.A.B. de C.V., who served as a merged and currently defunct company, discloses additional information regarding the financial statements of Banregio Grupo Financiero S.A.B. of CV, for the period ended March 31, 2018, in order to maintain continuity in the disclosure of financial information and for comparative and analytical purposes, as well as the pro forma financial statements in which the financial situation and the results of Regional, S.A.B. de C.V. are presented, as if the corporate restructuring referred to above had taken effect in the same quarter of the previous year
The commercial portfolio, which includes loans for small and medium businesses registered $92,751 million pesos during 2Q21, showing a 1% decrease compared with 2Q20.
On the other hand, Preferred Banking portfolio, which includes mortgages, auto credits and consumer credits such as credit cards, lay up $16,956 million pesos, representing a 8% annualized gain.
Core deposits, formed by demand deposits and savings accounts as time deposits, reached $106,264 million pesos during the second quarter of 2021, presenting a 7% increase compared to the previous quarter. Demand deposits had a 31% growth compared with 2Q20.
Core deposits costs in national currency cost is 2.4% at the end of 2Q21.
Risks and Strengths
Non-performingloans ratio was 1.6% at the end of 2Q21, 6 basis points more than the same quarter last year.
Regional has credit provisions that cover 1.4 times its non-performing loan portfolio.
Banco Regional's capitalization ratio as of May 2021 is 15.1%.
The financial margin at the end of 2Q21 was $1,841 million pesos, decreasing 1% versus 2Q20.
Net Income was $959 at the close of 2Q21, 23% more than 2Q20.
The Efficiency Index1 at the end of 2Q21 was 47.2%
Regional, S.A.B de C.V. (Regional) is a Mexican public company, which principal subsidiaries, Banregio Grupo Financiero, S.A. de C.V. (BanregioGF), Banco Regional S.A. IBM (Banregio) and Start Banregio, SOFOM (Start), grant credits and leases to medium and small businesses as well to individuals as their main activity.
Banregio is present in 22 federal entities through a 156 branches network, located in: Aguascalientes, Baja California, Baja California Sur, Chihuahua, Coahuila, Ciudad de México, Durango, Estado de México, Guanajuato, Jalisco, Michoacán, Nuevo León, Puebla, Querétaro, Quintana Roo, San Luis Potosí, Sinaloa, Sonora, Tamaulipas, Veracruz, Yucatán and Zacatecas.
Regional is a public traded company (R), its main subsidiary Banco Regional was founded in 1994.
1Last 12 months
San Pedro Garza Garcia, N.L. July 26th, 2021. Regional, S.A.B. de C.V. (BMV: R.A) announced today its consolidated financial and operational results corresponding to 2Q21. The figures are in current million pesos and the percentage variations are compared with the same period of the previous year, unless otherwise specified.
Regional, S.A.B. de C.V. generated at the end of 2Q21 a net income of $959 million pesos, achieving a 13.8% ROAE.
At the end of 2Q21 the financial margin registered $1,841 million pesos, showing a 1% decrease compared to the same quarter last year.
Non-Interest Income at the end of the Second Quarter 2021 amounted $803 million pesos. Net Income by Pure Leasing stand out registering $276 million pesos during the quarter.
The operating income reached $1,332 million pesos, increasing 23% compared to the same period last year.
The net income at the end of 2Q21:
Total operating income
Non interest expenses
The performing loan portfolio reached a balance of $112,633 million pesos at the end of 2Q21, increasing 3% compared to 2Q20. It stands out the growth in consumer loans increasing 21%.
The non-performing loan ratio was 1.6% at the end of 2Q21, 6 basis points higher than that of 2Q20, and Regional has a coverage ratio of provisions for credit loan losses of 1.4 times the non-performing loan portfolio.
Core deposits reached $106,264 million pesos at the end of 2Q21, Demand deposits stand out with a 31% increase compared to the second quarter in 2020.
The capitalization ratio to total risky assets of Banco Regional, S.A. stood at 15.1% by May 2021.
Net Income by Subsidiary
During the Second Quarter of 2021, Banco Regional, S.A. generated 74% of Regional's total Net Income, Start Banregio, S.A. de C.V. which is a subsidiary of Banco Regional, generated 24% and other subsidiaries contributed 2% of the Regional's net income.
The following chart shows information in a 12 month horizon in order to prevent distortions caused by seasonality.
Financial ratios Last Twelve Months (LTM)
Net Interest Margin (NIM)
Total Loans NIM LTM
Return on Equity (ROAE)
Return on Assets (ROAA)
Return on Assets (ROAA) of Total Loans
Loans to deposits
Net Interest Margin NIM: Financial Margin of last 4 quarters / Average productive assets of the last 12 months.
Total Loans NIM LTM: (Financial margin of last 4 quarters (-) income by repos of last 4 quarters) / (Average productive assets of last 12 months (-) average balance of repos LTM).
Return on Average Equity (ROAE): Net income of last 4 quarters / Average stockholders' equity of last 4 quarters.
Return on Average Assets (ROAA): Net income of last 4 quarters / Average total assets of last 4 quarters.
Return on Average Assets (ROAA) of total Loans: (Net income of last 4 quarters / (Average total assets of last 4 quarters (-) average balance of repos or last 4 quarters)).
Efficiency Ratio: Administration and promotion expenses of last 4 quarters / (Financial Margin + Commissions + Trading + Other Income) of last 4 quarters.
Loans to deposits: Loan portfolio at the end of the quarter / Core deposits at the end of the quarter.
Regional SAB de CV published this content on 26 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 21:53:41 UTC.