Regional B De C : Download The Results For The Fourth Quarter

Table of Contents

PREPARED IN ACCORDANCE WITH THE GENERAL PROVISIONS APPLICABLE TO FINANCIAL INFORMATION OF HOLDING COMPANIES ISSUED BY THE NATIONAL BANKING AND SECURITIES COMMISSION (CNBV).

Regional, S.A.B. de C.V. presents, for informative purposes only, the internal financial statements for the period ended December 30, 2021. Also, and considering that the public company participated in a corporate restructuring through a merger in which it acted as a merging company with Banregio Grupo Financiero S.A.B. de C.V., who served as a merged and currently defunct company, discloses additional information regarding the financial statements of Banregio Grupo Financiero S.A.B. of CV, for the period ended March 31, 2018, in order to maintain continuity in the disclosure of financial information and for comparative and analytical purposes, as well as the pro forma financial statements in which the financial situation and the results of Regional, S.A.B. de C.V. are presented, as if the corporate restructuring referred to above had taken effect in the same quarter of the previous year.

Table of Contents

EXECUTIVE SUMMARY…………………………………………………………………………………………..	4
Growth …………………………………………………………………………………………………………………………………………	4
Risks and Strengths …………………………………………………………………………………………………………………………..	4
Profitability …………………………………………………………………………………………………………………………………….	4
Company Description …………………………………………………………………………………………………………………………	4
Results…………………………………………………………………………………………………………………………………………	5
Financial Margin……………………………………………………………………………………………………………………………….	5
Non-InterestIncome …………………………………………………………………………………………………………………………..	5
Operating Income ……………………………………………………………………………………………………………………………..	5
Loan Portfolio ………………………………………………………………………………………………………………………………….	5
Deposits ……………………………………………………………………………………………………………………………………….	5
Capitalization ………………………………………………………………………………………………………………………………….	5
Net Income by Subsidiary …………………………………………………………………………………………………………………….	6
OPERATING RESULTS …………………………………………………………………………………………..	7
Results…………………………………………………………………………………………………………………………………………	7
Financial Margin……………………………………………………………………………………………………………………………….	7
Net Commissions and Fees …………………………………………………………………………………………………………………..	8
Insurance and FX Fees ……………………………………………………………………………………………………………………….	8
Net Income by Leasing………………………………………………………………………………………………………………………..	8
Other Operating Income (Expenses) …………………………………………………………………………………………………………	8
Non-InterestExpenses………………………………………………………………………………………………………………………..	9
Information by Segment ………………………………………………………………………………………………………………………	9
FINANCIAL SITUATION …………………………………………………………………………………………	10
Cash and Equivalents ……………………………………………………………………………………………………………………….	10
Performing Loan Portfolio …………………………………………………………………………………………………………………..	10
Non-performingLoan Portfolio………………………………………………………………………………………………………………	11
Credit Ratings ……………………………………………………………………………………………………………………………….	12
Deposits ……………………………………………………………………………………………………………………………………..	12
Securities Investments ………………………………………………………………………………………………………………………	13
Repurchase Agreements ……………………………………………………………………………………………………………………	14
Financial Derivative Operations …………………………………………………………………………………………………………….	14
Loan Securities Issued ………………………………………………………………………………………………………………………	16
Incurred and Deferred Taxes ……………………………………………………………………………………………………………….	16
Capitalization Ratio of Banco Regional S.A.………………………………………………………………………………………………..	16
Value at Risk (VaR)………………………………………………………………………………………………………………………….	17
Branch Network ……………………………………………………………………………………………………………………………..	18
Alternative Channels ………………………………………………………………………………………………………………………..	18
Treasury Policy ………………………………………………………………………………………………………………………………	18
Internal and External Funding and Liquidity Sources ………………………………………………………………………………………	18
Regional on the Mexican Stock Exchange (R.A) …………………………………………………………………………………………..	19
Analysis Coverage of Regional′s Stock …………………………………………………………………………………………………….	20
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	Table of Contents
INTERNAL CONTROL …………………………………………………………………………………………..	21
INTERCOMPANY OPERATIONS AND RELATED PARTS ……………………………………………………	23
Intercompany Operations ……………………………………………………………………………………………………………………	23
Loans to Related Parties (Banco Regional, S.A.)…………………………………………………………………………………………..	25
Loans to Related Parties (Start Banregio S.A. de C.V.) ……………………………………………………………………………………	25
INTEGRAL RISK MANAGEMENT ………………………………………………………………………………	26
Ratings……………………………………………………………………………………………………………………………………….	26
CORPORATE STRUCTURE …………………………………………………………………………………….	27
Board of Directors……………………………………………………………………………………………………………………………	28
Main Officers…………………………………………………………………………………………………………………………………	28
Dividend Policy ………………………………………………………………………………………………………………………………	29
ACCOUNTING STANDARDS AND CRITERIA …………………………………………………………………	30
Technical Note ………………………………………………………………………………………………………………………………	35
Quarterly Income Statement ………………………………………………………………………………………………………………..	37
Income Statement YTD ……………………………………………………………………………………………………………………..	37
Balance Sheet: Assets and Liabilities ………………………………………………………………………………………………………	38
Balance Sheet: Stockholders Equity ………………………………………………………………………………………………………..	39
Memorandum Accounts……………………………………………………………………………………………………………………..	39
Financial Ratios (CNBV criteria)…………………………………………………………………………………………………………….	40
CERTIFICATION …………………………………………………………………………………………………	41

EXECUTIVE SUMMARY

Growth

The commercial portfolio, which includes loans for small and medium businesses registered $96,398 million pesos during 4Q21.
On the other hand, Preferred Banking portfolio, which includes mortgages, auto credits and consumer credits such as credit cards, lay up $17,925 million pesos, representing a 9% annualized gain.
Core deposits, formed by demand deposits and savings accounts as time deposits, reached $106,757 million pesos during the Fourth Quarter of 2021, presenting a 7% increase compared to the previous quarter. Demand deposits had a 28% growth compared to 4Q20.
Core deposits costs in national currency cost is 2.7% at the end of 4Q21.

Risks and Strengths

Non-performingloans ratio was 1.8% at the end of 4Q21, 40 basis points higher than the same quarter last year.
Regional has credit provisions that cover 1.3 times its non-performing loan portfolio.
Banco Regional’s capitalization ratio as of November 2021 is 15.7%.

Profitability

The financial margin at the end of 4Q21 was $2,022 million pesos, increasing 8% versus 4Q20.
Net Income was $925 at the close of 4Q21, 80% more than 4Q20.
The Efficiency Index1 at the end of 4Q21 was 46.5%

Company Description

Regional, S.A.B de C.V. (Regional) is a Mexican public company, which principal subsidiaries, Banregio Grupo Financiero, S.A. de C.V. (BanregioGF), Banco Regional S.A. IBM (Banregio) and Start Banregio, SOFOM (Start), grant credits and leases to medium and small businesses as well to individuals as their main activity.

Banregio is present in 22 federal entities through a 156 branches network, located in: Aguascalientes, Baja California, Baja California Sur, Chihuahua, Coahuila, Ciudad de México, Durango, Estado de México, Guanajuato, Jalisco, Michoacán, Nuevo León, Puebla, Querétaro, Quintana Roo, San Luis Potosí, Sinaloa, Sonora, Tamaulipas, Veracruz, Yucatán and Zacatecas.

Regional is a public traded company (R), its main subsidiary Banco Regional was founded in 1994.

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Regional SAB de CV published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 21:49:10 UTC.

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Sales 2021	10 432 M 502 M 502 M
Net income 2021	3 491 M 168 M 168 M
Net Debt 2021	– – –
P/E ratio 2021	10,7x
Yield 2021	4,74%