Banco Actinver S.A., Institución de Banca Múltiple Grupo Financiero Actinver (INFRAEX 18) Q2 2024 earnings summary

Executive summary

• Net income for 3Q24 was MX$329 million, up 140% year-over-year, and MX$1,281 million for the last twelve months, with an 18% CAGR from 2016 to 2023.

• Assets under management and custody reached MX$810 billion, serving over 438,000 clients nationwide.

• The business model emphasizes diversified financial services, digital innovation, and strategic partnerships.

• Financial margin rose 61% to $744 million pesos, driven by treasury strategies and credit portfolio growth.

• Net fees and commissions increased 19% to $1,059 million pesos, offsetting weaker investment banking results.

Financial highlights

• Net income for 3Q24 increased 140% year-over-year to MX$329 million; LTM net income was MX$1,281 million.

• Operating income for 3Q24 rose 22% year-over-year to MX$472 million.

• Total revenue for 3Q24 was MX$4,965 million, up 4% sequentially and 14% year-over-year.

• Brokerage income surged 280% year-over-year to MX$374 million in 3Q24, but brokerage revenues fell 53% in 2Q24 due to money market performance.

• EPS (LTM) reached MX$2.41, up 18% sequentially and 10% year-over-year; EPS (L12M) was $2.04, down 18% year-over-year.

Outlook and guidance

• Strategic focus on increasing market share, customer profitability, and enhanced client experience through digital tools and scalable growth.

• Continued investment in digital platforms, process automation, and strategic alliances to drive efficiency and innovation.

• Plans to maintain a cautious approach to credit lending in the second half, aiming to return to historical NPL levels.

• Focus on accelerating hires and investing in strategic projects and technology to support growth.

• Prepared to capitalize on opportunities in the second half of 2024, leveraging competitive advantages and market knowledge.