Regional S.A.B (RA) Q2 2025 earnings summary

Executive summary

• Net income for 2Q25 reached MXN $1,639 million, up 2% year-over-year, with total assets up 13% to $263,167 million and total loans up 10% to $183,722 million.

• Commercial strategies focused on regional expansion, risk management, and income diversification.

• Core deposits increased 7% year-over-year, while time deposits grew 7% to $92,252 million pesos.

• Efficiency ratio deteriorated to 40.8% in 2Q25, up 188 bps year-over-year.

• NPL ratio rose to 1.5% in 2Q25, up 21 bps year-over-year, indicating a slight increase in credit risk.

Financial highlights

• Financial margin expanded 8%-9% year-over-year to $3,815 million, and non-financial income rose 8%.

• Operating income for 2Q25 was $2,248 million pesos, a 3% increase year-over-year.

• Insurance fees grew 25% year-over-year, with non-interest income at $1,027 million pesos.

• Operating expenses increased 11% year-over-year, efficiency ratio rose to 40.8%.

• Loans grew 10% year-over-year, with strong performance in Jalisco.

Outlook and guidance

• Loan and deposit growth guidance revised to 7%-10% (from 10%-15%) due to economic uncertainty.

• Net income growth guidance lowered to 5%-10% (from 10%-15%) reflecting margin normalization.

• ROE target now 19%-20% (from 20%-21%), with NIM guidance maintained at 6%-6.5%.

• Cost of risk guidance increased to 0.8%-1% (from 0.7%-0.9%).

• Forward-looking statements highlight exposure to economic, political, and regulatory risks.