Gentera Profit Rises as Mexican Loan Arrears Climb

Gentera reported net income of MXN 2.342 billion for the third quarter, up 8.6% from a year earlier, as past-due loans climbed to 4.57% of its loan book. The Mexico City financial group published unaudited results on 21 October for the quarter ended 30 September. Its loan book reached MXN 95.22 billion, an 8.5% annual increase, alongside the rise in arrears.

Profit and credit quality

Past-due credit at Banco Compartamos in Mexico, Gentera’s largest unit, rose to 5.20% of its loan book from 3.51% a year earlier. The unit holds about 65% of the group’s loans. Gentera’s Stage 3 loans, its measure of past-due credit, stood at 4.57% of the group’s book, compared with 3.43% a year earlier and 4.04% in the second quarter.

Provisions for expected loan losses rose 31.7% to MXN 3.753 billion. The cost of risk reached 15.8%, up from 13.3% a year earlier, while reserves covered 206.4% of Stage 3 loans. Net interest margin after provisions slipped 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. Double-digit loan growth would return once the group saw more evidence that credit quality had stabilised, he said, but he gave no date.

Different results across the group

Banco Compartamos Mexico’s loan book fell 1.0% from the second quarter to MXN 61.912 billion, though it grew 6.5% over 12 months. Its net income rose 1.4% to MXN 1.473 billion. In Peru, Compartamos Banco’s loan book increased 11.6% to MXN 26.431 billion, or 11.9% in local currency, and net income climbed 20.0% to MXN 468 million.

ConCrédito, a Mexican consumer lender that sells through about 84,000 distributors, reported a loan book of MXN 6.878 billion. Its loans grew 14.4%, and net income increased 40.6% to MXN 268 million. Gentera said it served a record 6.87 million people in Mexico and Peru, including insurance customers and end users of ConCrédito, not only borrowers. The results don’t break that total down by customer category.

Income, capital and dividend

For the first nine months of 2026, Gentera’s net income reached MXN 7.189 billion, up 10.9%. The amount attributable to Gentera shareholders reached MXN 2.261 billion, a 7.7% increase, 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 totalled MXN 20.787 billion, up 35.7% from a year earlier. Equity equalled 31.5% of total assets. Return on average equity was 24.5%, down from 26.0%, and Banco Compartamos reported a capitalisation ratio of 34.2%.

Gentera is paying a dividend approved on 10 April in two parts. The second and final payment, about MXN 1.64 billion, is due on 13 November. Gentera is listed on the Mexican Stock Exchange as GENTERA* and operates banks in Mexico and Peru, ConCrédito, an insurance business and a network of payment agents. The results follow Mexican banking rules and are stated in pesos. They’re unaudited and may be revised in annual accounts; the report didn’t establish whether the past-due ratio had peaked or when faster lending in Mexico would resume.