Equity Analysis /

Gentera: Flash GENTERA: 2022 Guidance to the upside

  • Gentera upgraded its 2022 guidance given solid growth, portfolio quality, expense control and Transformation strategy

  • The company now estimates a credit portfolio rise of 15%-17% and EPS of MXN 2.45 - MXN 2.55 (66%-72% y/y increase)

  • The update should be well received by the market due to better dynamics that could boost results

Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

9 June 2022
Published byBanorte

Gentera modified to the upside its 2022 guidance due to the following factors: 1) improvements in growth and operation trends, both in Mexico and Peru, over what was initially expected; 2) good portfolio quality and expense control; and 3) early advances in the Transformation strategy. Therefore, the company now estimates year over year increase in its credit portfolio between 15% and 17% (vs the previous one between 13% and 15%), while it expects an Earnings Per Share (EPS) between MXN 2.45 to MXN 2.55, which is equivalent to annual increases of 66%-72%, respectively, comparing favorably against the previous estimation between MXN 2.05 to MXN 2.15 (38%-45% y/y, respectively).

Positive implication: The company’s guidance update should be well received by the market given the better dynamics that would be boosting results. It is worth noting that the company's solid 1Q22 figures, which exceeded expectations, already foreseen a better year performance. Therefore, we will be reviewing our estimates with positive bias and reiterate our favorable opinion for the company.