Banregio Grupo Financiero SAB, a Mexican lender catering to small- and medium-size businesses, climbed as loan growth and lower-than-expected taxes helped the company beat fourth-quarter profit estimates.
Net income rose 39 percent in the fourth quarter to 424 million pesos ($32 million), or an adjusted 1.29 pesos per share, from 305 million pesos, or 0.93 pesos, a year earlier. The result topped the average estimate of 1.18 pesos per share among four analysts surveyed by Bloomberg.
Profits exceeded expectations because of lower taxes, UBS analysts led by Marimar Torreblanca wrote in a note today. Banregio shares rose 2.8 percent at 1:15 p.m. to 75.62 pesos in Mexico City trading, the most on Mexico’s benchmark IPC index, as Banregio CEO Manuel Gerardo Rivero Santos told investors on a conference call that profit will rise 17 percent this year.
“The growth story remains intact with impressive loan growth and improving asset quality,” the UBS analysts wrote.
For all of 2013, Banregio’s net income rose 19 percent from a year earlier to 1.43 billion pesos. Loans at the end of 2013 climbed 23 percent from a year earlier, according to UBS.