This article first appeared on GuruFocus .
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Loan Portfolio:MXN94.6 billion, 13.1% year-over-year growth.
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Customer Base:6.7 million people served in Mexico and Peru.
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Net Income:MXN4.8 billion for the first half of the year, 12% year-over-year growth.
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Non-Performing Loans Ratio:4.04%, slight improvement from 4.13% in the previous quarter.
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Banco Compartamos Peru Loan Growth:14.5% in local currency.
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ConCredito Loan Growth:14.9% year-over-year.
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Interest Income:MXN12.96 billion, 9.8% growth compared to the previous year.
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Net Interest Income:MXN11.1 billion, 13.9% growth.
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Net Interest Margin (NIM):41.2% for Q2 2026; expected to be around 41% for the year-end.
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Cost of Risk:13.7% for the first semester.
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Provision for Loan Losses:MXN3.43 billion, 29.7% growth.
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Net Fees:MXN1.6 billion, 14.2% growth compared to the previous year.
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Operational Expenses:MXN6.19 million, 7.7% increase year-over-year.
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Net Income for Q2 2026:MXN2.353 billion, 11.6% growth year-over-year.
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EPS:MXN1.45, 8.5% growth compared to the previous year.
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Return on Equity (ROE):24.5% for Q2 2026.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Gentera SAB de CV ( CMPRF ) reported a solid operating and financial performance with a loan portfolio reaching MXN94.6 billion, marking a year-over-year growth of over 13%.
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The company achieved its highest first-half net income in history, reaching MXN4.8 billion, representing a 12% year-over-year growth.
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Subsidiaries like ConCredito and Banco Compartamos Peru showed strong growth, with loan portfolios increasing by nearly 15% and over 14% respectively.
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The company maintained a strong net interest margin (NIM) of 41.2% in the second quarter, with expectations to sustain around 41% by year-end.
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Gentera's digital transformation process is progressing steadily, with plans for a nationwide deployment in 2027, enhancing operational efficiency and customer service.
Negative Points
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The company revised its full-year loan portfolio growth guidance to 6% to 9% due to a slowdown in the consumer economy in Mexico.
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There are concerns about asset quality, with Stage 3 non-performing loans ratio at 4.04%, although slightly improved from the previous quarter.
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Gentera is experiencing a natural cycle of portfolio stabilization after rapid growth, which may impact short-term growth prospects.
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The economic slowdown in Mexico is expected to persist, potentially affecting customer repayment capacity and overall financial performance.
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The company faces increased competition from fintechs and traditional banks, which could impact its market share and growth in the individual lending segment.
Q & A Highlights
Q: Hi, Enrique, Mario, Enrique Barrera, everybody. Good to see the stabilization of the new NPL formation. But I would like to ask more about growth here, Mario. For 2027, how do you see the leverage for you to deliver like EPS expansion? A: Thank you very much, Yuri. We feel very confident that we can deliver a double-digit growth in our portfolio and in our earnings in the medium term. We will be managing interest expenses to ensure financial margins grow double-digit, stabilize provisions, and maintain positive jobs to deliver EPS growth. Please wait until February for the exact '27 guidance.
Q: Just on dividend payout, I know you just approved the 40%. Can we start to see debates around higher dividend payout for Gentera? A: Our medium-term objectives don't change. We increased the payout from 40 to 45, accounting for a medium-term strategy. We will ensure sufficient capital for organic growth and consider distributing excess capital to shareholders. Our objective is to propose a 45% payout next year.
Q: What is the measure for investors that these asset quality issues will not repeat when you start accelerating growth again for 2027? A: We believe that part of the issues were due to changes in our processes, which we have been addressing. We feel comfortable that the things under control will allow us to return to comfortable levels. We have implemented corrective actions and are seeing early signs of stabilization.
Q: Should we expect cost of risk to moderate already beginning next quarter or could it take some time? A: We expect NPLs to be around 4% and cost of risk to return to levels around 13.5% by year-end. It will take a couple of quarters to see these adjustments normalize.
Q: Regarding OpEx and efficiency, can we see a continuous improvement in efficiency ratio for 2027? A: Our objective is to keep improving the efficiency ratio and bring it below 60% in a couple of years. We will maintain positive jobs, ensuring income grows faster than expenses, allowing us to achieve lower efficiency ratios.
Q: How do you see provisioning for Peru and if there could be any impact on your loan growth due to concerns with El Nino? A: Our results and operations in Peru are running very well. We are aware of El Nino and have provisions considered. We feel comfortable with the provisions we have today and expect to maintain double-digit growth in Peru.
Q: How should we think about loan growth next year? When are you expecting to reaccelerate? A: Our medium-term objective is to maintain double-digit growth in the portfolio and earnings. We would like to restore that as soon as possible, but it is important to do it with control. We will provide specific guidance for 2027 after observing the next two quarters.
Q: Can you provide more colors on the drivers for the 41% NIM that you indicated in this call? A: The interest income is growing at double digits due to the artist portfolio's growth. The favorable interest rate environment in Mexico and Peru has allowed for a more convenient interest expense line, contributing to the expected NIM of around 41% before risk and 29%-30% after risk.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
