Background on Gentera and its Relevance
Gentera, the parent company of Banco Compartamos and other financial entities, has demonstrated resilience amidst economic uncertainty. The company recently reported a record-breaking quarter in net profit, showcasing its robust financial standing and growth potential.
Enrique Majós, Gentera’s CEO, emphasizes the company’s ability to maintain a sustainable expansion path even in adverse economic conditions. Gentera’s relevance stems from its control over Banco Compartamos and other financial institutions, which cater to essential sectors like food, healthcare, and basic services.
Majós’ Perspective on Economic Resilience
During Gentera’s quarterly report conference, Majós highlighted the historical resilience of sectors such as food, healthcare, and basic services during economic downturns. He pointed out that Gentera’s clients—small to medium-sized enterprises and microbusinesses—are flexible and adaptable due to their low fixed-cost bases.
Gentera’s Client Base and Growth Expectations
Banco Compartamos, Gentera’s primary subsidiary accounting for 64.6% of the portfolio and 71.8% of interest income, serves 3,253,492 clients. Majós asserts that these clients’ demand for Gentera’s products and services remains steady, bolstering the company’s growth outlook.
First Quarter 2025 Financial Performance
Gentera’s first-quarter 2025 results reinforce the company’s optimistic growth expectations:
- Record-breaking net profit: Gentera achieved its highest-ever quarterly net profit of 2,221 million pesos, marking a 47.3% annual increase.
- Return on Equity (ROE): ROE reached 25.8%, and Return on Assets (ROA) was 8.3%.
- Banco Compartamos Performance: The subsidiary reported a 53,456 million pesos portfolio, growing by 27.0% annually. It also recorded a net profit of 1,545 million pesos, up by 34.6% annually, with ROE at 37.4% and ROA at 10.1%.
- Consolidated Portfolio: Gentera’s total consolidated portfolio reached 82,725 million pesos by the end of Q1 2025, a 26.3% increase compared to the same period in 2024.
This performance is primarily driven by the strong momentum of Gentera’s financial subsidiaries in Mexico.
Cartera Vencida (Overdue Loans)
Regarding Banco Compartamos’ overdue loans, the ratio increased to 3.89% in Q1 2025, up from 3.28% in the same period of 2024—an increase of 0.61 percentage points.
However, the ratio remained stable compared to Q4 2024’s 3.88%. Majós explained that this change is due to a shift in the composition of credit products:
“We primarily offer two types of credit: group credit and individual credit. Individual credit typically has a slightly higher delinquency rate than group credit. If you adjust the mix and include more individual credits in your portfolio compared to group credits, the average delinquency rate will rise slightly. This is mainly due to a change in portfolio composition and product mix,” Majós explained.
