Gentera Profits Rise as Borrower Delinquencies Climb

Gentera reported unaudited third-quarter net income of MXN 2.342 billion as past-due loans rose to 4.57% of its loan book, placing higher returns alongside a growing share of credit in arrears. The group behind Banco Compartamos released its results on 21 October for the quarter ended 30 September. Its loan book reached MXN 95.22 billion, an 8.5% increase from a year earlier.

The figures show lending expansion as more borrowers fall behind. Past-due credit stood at 3.43% of the book a year earlier and 4.04% in the second quarter. At Banco Compartamos in Mexico, Gentera’s largest unit, the ratio hit 5.20%, up from 3.51% a year earlier. That bank holds about 65% of the group’s loans.

The cost inside the loan book

Provisions for expected loan losses rose 31.7% to MXN 3.753 billion. Gentera’s cost of risk reached 15.8%, compared with 13.3% a year earlier, while reserves covered 206.4% of stage 3 loans, the company’s measure of past-due credit. Net interest margin after provisions fell to 28.5% from 30.6% a year earlier.

Chief executive Enrique Majós said Gentera was putting prudence ahead of growth, and that measures introduced since the second quarter were helping contain the past-due ratio. The company’s Mexico loan book contracted 1.0% from the second quarter to MXN 61.912 billion, although it grew 6.5% over 12 months. Its net income rose 1.4% to MXN 1.473 billion.

Majós said double-digit loan growth would resume when there was more evidence that credit quality had stabilised. He gave no date. So the company’s leadership will determine when faster lending returns in Mexico, while the reported figures show borrowers’ overdue balances climbing.

A record number of people served

Gentera said it served a record 6.87 million people in Mexico and Peru. The count includes insurance customers and end users of ConCrédito, not just borrowers. The company didn’t report how many of those people borrowed or how the rising past-due ratios were distributed among them.

Compartamos Banco in Peru grew its loan book 11.6% to MXN 26.431 billion, or 11.9% in local currency. Its net income rose 20.0% to MXN 468 million. ConCrédito, a Mexican consumer lender that sells through about 84,000 distributors, reached a record loan book of MXN 6.878 billion. Its loans grew 14.4%, and net income climbed 40.6% to MXN 268 million.

Profits, expenses and the payout

Group net income increased 8.6% from MXN 2.156 billion a year earlier, but fell 0.5% from the second quarter. For the first nine months of 2026, net income rose 10.9% to MXN 7.189 billion. Gentera shareholders received MXN 2.261 billion in attributable income, up 7.7%, or about MXN 1.43 per share.

Interest income rose 6.7% to MXN 13.247 billion. Operating expenses grew 4.8% to MXN 6.369 billion, below the company’s original full-year expectation. Cash and financial investments reached MXN 20.787 billion, up 35.7% from a year earlier. Return on average equity was 24.5%, down from 26.0%, and equity equalled 31.5% of total assets.

Gentera approved a dividend on 10 April and is paying it in two parts. The second and final payment, about MXN 1.64 billion, is due on 13 November. Gentera trades on the Mexican Stock Exchange as GENTERA*. The results follow Mexican banking rules, are stated in pesos and remain unaudited; the company’s report didn’t establish whether the past-due ratio had peaked.