Earnings release
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EXECUTIVE SUMMARY 1 EXECUTIVE SUMMARY Growth ▪ Total Loan Portfolio closed at $183,722 million pesos in 2Q25, increasing 10% YoY. ▪ Commercial loans, which include loans to businesses, financial and government entities, grew 11%, reaching a total of $153,577 million pesos. Meanwhile, personal loans, which include mortgages, auto loans and personal loans such as credit cards, totaled $30,145 million pesos, with an 9% increase. ▪ Core deposits, formed by demand deposits and savings account s as time deposits, reached $174,521 million pesos during the Second Quarter of 2025, presenting a 7 % increase compared to the same quarter last year. Time deposits had a 7% growth compared to 2Q24. ▪ Cost of funding in domestic currency is 5.6% at the end of 2Q25. Risks and Strengths ▪ The Loans portfolio with c redit risk stage 3 ratio was 1.5% at the end of 2 Q25, 21 basis points higher than the same quarter last year. ▪ Regional has credit provisions that cover 1.4 times its non-performing loan portfolio. ▪ Banco Regional’s capitalization ratio as of May 2025 is 14.1%. Profitability ▪ The financial margin at the end of 2Q25 was $3,815 million pesos, increasing 8% versus 2Q24. ▪ Net Income was $1,639 at the end of 2Q25, 2% more than 2 Q24. ▪ The Efficiency Index1 at the end of 2Q25 was 40.8%. 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 has presence in 22 federal entities through a 210 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. 1Last 12 months
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EXECUTIVE SUMMARY 2 San Pedro Garza Garcia, N.L. July 28th, 2025. Regional, S.A.B. de C.V. (BMV: R.A) announced today its consolidated financial and operational results corresponding to 2Q25. The figures are in current million pesos and the percentage variations are compared with the same period of the previous year, unless otherwise specified. Results Regional, S.A.B. d e C.V. generated at the end of 2Q25 a net income of $1,639 million pesos, achieving a 20.1 % ROAE12. Financial Margin At the end of 2 Q25 the financial margin registered $3,815 million pesos, showing an 8% increase compared to the same quarter last year. Non-Interest Income Non-Interest Income at the end of the Second Quarter of 2025 amounted $1,027 million pesos. The income from Insurance Fees stands apart, showing a year on year growth of 25%. Operating Income The operating income reached $2,248 million pesos, increasing 3% compared to the same period last year. The net income at the end of 2Q25: Loan Portfolio The total loan portfolio reached a balance of $1 83,722 million pesos at the end of 2Q25, representing a 10 % increase compared to 2Q24. The growth in the commercial loan portfolio stood out, reaching a balance of $153,577 million pesos. The consumer and mortgage loan portfolios expanded by 9% and 8% respectively, compared to the same quarter of the previous year. The non-performing loan ratio was 1.5% at the end of 2Q25, 21 basis points higher than that of 2Q24, and Regional has a coverage ratio of provisions for credit loan losses of 1.4 times the non-performing loan portfolio. Deposits Core deposits reached $174,521 million pesos at the end of 2Q25 with an increase of 7 % compared to the same quarter last year. Time deposits stand out with a 7% increase compared to the Second Quarter in 2025, reaching a balance of $92,252 million pesos. 1Last 12 months Net Income 6M25 vs (Million pesos) 2Q24 1Q25 6M24 Financial Margin 3,524 3,723 3,815 8% 2% 6,957 7,538 8% Total operating income 3,924 4,044 4,179 6% 3% 7,637 8,223 8% Non interest expenses (1,733) (1,826) (1,931) 11% 6% (3,296) (3,757) 14% Operating Income 2,191 2,218 2,248 3% 1% 4,341 4,466 3% Net income 1,608 1,633 1,639 2% 0% 3,223 3,272 2% 1Q25 2Q25 2Q25 vs 6M24 6M252Q24
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EXECUTIVE SUMMARY 3 Capitalization The capitalization ratio to total risk assets of Banco Regional, S.A. stood at 14.6% by May 2025. Net Income by Subsidiary During the Second Quarter of 2025, Banco Regional, S.A. generated 79% of Regional’s total Net Income, while Start Banregio, S.A. de C.V. generated 14%, Inmobiliaria Banregio S.A. de C.V. 5% and Hey Banco S.A. Institución de Banca Múltiple, Banregio Grupo Financiero 2% of Regional’s net income. Financial Indicators The following chart shows information in a 12 month horizon in order to prevent distortions caused by seasonality. 1. Net Interest Margin NIM: Financial Margin of last 4 quarters / Average productive assets of the last 12 months. 2. Total Loans NIM LTM: (Financial margin of last 4 quarters adjusted by repos, cash equivalents, derivatives and margin calls) / (Average Total Loan with credit risk stage 1 + Total Loan with credit risk stage 2 of last 12 months). 3. Return on Average Equity ( ROAE): Net income of last 4 quarters / Average stockholders’ equity of last 4 quarters. 4. Return on Average Assets (ROAA): Net income of last 4 quarters / Average total assets of last 4 quarters . 5. Return on Average Assets (ROAA) of total Loans: (Net income of last 4 quarters / (Average total assets of last 4 quarters (-) average balance of repos or last 4 quarters)). 6. Efficiency Ratio: Administration and promotion expenses of last 4 quarters / (Financial Margin + Commissions + Trading + Other Income) of last 4 quarters. 7. Loans to deposits: Loan portfolio at the end of the quarter / Core deposits at the end of the quarter. Financial ratios Last Twelve Months (LTM) 2Q24 1Q25 Net Interest Margin (NIM) (1) 6.3% 6.5% 6.6% 6.6% 6.5% 12 b.p. (10 b.p.) Total Loans NIM LTM (2) 7.6% 7.6% 7.5% 7.4% 7.3% (25 b.p.) (3 b.p.) Return on Equity (ROAE) (3) 22.4% 21.7% 21.3% 20.6% 20.1% (228 b.p.) (45 b.p.) Return on Assets (ROAA) (4) 2.8% 2.8% 2.8% 2.7% 2.6% (14 b.p.) (7 b.p.) Return on Assets (ROAA) of Total Loans (5) 2.4% 2.4% 2.4% 2.3% 2.2% (26 b.p.) (9 b.p.) Efficiency Ratio (6) 39.0% 39.5% 39.7% 40.3% 40.8% 188 b.p. 52 b.p. Loans to deposits (7) 101.6% 101.6% 105.4% 102.6% 105.3% 364 b.p. 271 b.p. Variation 2Q25 vs 2Q24 3Q24 4Q24 1Q25 2Q25
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4 Disclaimer Press releases, as well as other printed materials from Regional; S.A.B de C.V. may contain certain predictions regarding expected future events and financial results. Such statements are subjected to risk and uncertainty. We hereby warn you that a number of important factors may cause results to differ materially from the plans, objectives, expectations and intentions expressed in such predictions. These factors include economic and political conditions, as well policies taken by the government of Mexico o r those of other countries, such as inflation rates, exchange rates, regulatory changes, fluctuations in demand and competition. Contact information Investor Relations Investor.relations@banregio.com Telephone: +52(81)1985-5165