Our commercial strategy continues to prioritize expanding our presence in key regions while maintaining strict cost control and disciplined credit underwriting. We also remained focused on diversifying our income streams, particularly through non-financial revenue growth as well as increasing cross-selling, which helps partially offset lower demand.

Net income for the quarter reached $1,814 million pesos, representing a 7% year-on-year increase. Return on average equity decreased by 224 basis points year-on-year, reaching 19.1%.

While this is lower than our prior periods, it remains at healthy levels and reflects our continued prioritization of asset quality and profitability. Our consolidated NPL ratio remained at 1.3% and 1 basis point year-on-year, and our cost of risk declined by 3 basis points to 1%.

Overall, we are pleased with portfolio health and have not observed any significant deterioration in credit quality. We remain disciplined in underwriting and risk management.

Regional delivered solid year-on-year loan growth of 8%, supported by sustained commercial activity, particularly in high-performing regions such as Jalisco and segments like SMEs and auto loans. On the funding side, core deposits grew 13% year-on-year, highlighted by continued client trust and engagement.

Growth in both loans and deposits contributed a 7% expansion in the financial margin, supported by higher volumes and disciplined pricing. Our diversification efforts continue to gain traction, with card merchant fees up 17% year-on-year and insurance fees 25% quarter-on-quarter.

Non-financial income increased 10% quarter-on-quarter, providing some offset to the margin pressure we anticipate in future periods. Operating expenses increased 17% year-on-year, driven by technology expenses, strategic investments in geographic expansion, and inflationary pressures on operating costs.

As a result, the efficiency ratio rose to 40.2%, an increase of 258 basis points year-on-year. The wholesale loan portfolio grew 7% year-on-year, while the notable strength in Jalisco, where growth reached 21%.

We continue seeing the same environment, although the increase of policy could start motivating more demand. Wholesale banking demand deposits increased 42% year-on-year, bringing our CASA ratio to 45.7%.

Retail banking continued to show healthy momentum, with preferred banking demand deposits growing 9%, reflecting solid client engagement and trust. Our branch network continues to expand in a disciplined manner, focused on higher-potential locations that align with evolving customer needs.

Notably, auto and consumer loans grew 13% and 10% respectively, an indicator of growing client acquisition and deepening relationships. Asset quality remains a key strength, with non-performing loans ratios at healthy levels across all segments.

The wholesale portfolio reported an NPL ratio of 1%, consumer portfolio 3.2%, auto an outstanding of 0.6%, and mortgages 1.2%. These metrics reflect the effectiveness of our underwriting standards as the resilience of our customer base.

While we remain vigilant in a shifting macroeconomic environment, we believe we are well positioned to navigate potential challenges through proactive risk management and a diversified portfolio. Hey Banco continues to advance in a strategic shift toward profitability over pure growth, prioritizing high-quality customers over volume expansion.

This disciplined approach is delivering results. Individual demand deposits grew 20% year-on-year, while our business loans portfolio grew an impressive 32%, demonstrating strong traction in targeted segments.

Hey Banco reported a financial margin of $297 million pesos, and net interest margin reached 10%, an increase of 302 basis points year-on-year, reflecting improved asset yields and a more profitable customer mix. Our efficiency ratio improved to 57.6%, a 1,403 basis points year-on-year reduction, highlighting progress in cost containment even as we continue investment in automation and digital capabilities to mitigate structural cost pressures.

Our active individual consumer base now stands at 476,000, consistent with our strategy to prioritize quality over scale. We reduced our cost of risk by 166 basis points to 5.47%, while remaining vigilant on credit trends in the current environment.

We are happy to announce that the spin-off process of Hey Banco will be completed this weekend. Profitability continues to improve as Hey Banco.

We are encouraged by the ongoing upward trend. Net income for the quarter reached $55 million pesos, and given the progress we made in customer mix, pricing discipline, and cost containment, we expect profitability to continue trending higher going forward.

Turning on Hey Pago, we continue to see positive performance across our payment businesses. Total billing increased 34% year-on-year.

Growth during the quarter was primarily driven by the payment facilitator segment, which increased 150% year-on-year, reflecting a broader adoption of acquiring and processing solutions among partner merchants. At the same time, we continue to see stable contributions from aggregators and large corporate clients, supporting diversification of volumes.

Looking ahead, we expect payment business to remain an important contributor to growth, while maintaining a disciplined focus on scalability, operating efficiency, and profitability. Our results this quarter reinforce the strength of our core operations and the consistency of our strategic priorities, while continuing to generate sustainable growth even amid a more challenging environment.

This momentum we've seen across our key business lines, together with our prudent risk management and ongoing cost discipline, give us a high degree of visibility and confidence in meeting targets we set to 2026. With this solid foundation and ongoing momentum, we anticipate delivering top-tier results again in 2026, guided by our targets of: total loan growth between 5% to 10%, total deposits growth between 5% to 10%, net interest margin between 6% and 6.3%, efficiency ratio around 42%, net income growth between 5% to 10%, return on equity between 18% and 19%, cost of risk between 0.8% and 1%, NPL ratio below 1.8%, Hey Banco's guidance: loan growth between 15% to 20%, and net income growth between 65% to 90%.

Moving forward, we will continue to enhance our operations and explore new opportunities, fully committed to our strategic goals. We are confident that Regional will remain a strong financial performance in the coming years, ensuring superior profitability and asset quality than the system.

Thank you very much. We appreciate any questions.

Hi Manuel, Enrique, Alejandro. Thanks for the opportunity of asking questions.

I have two here on my side. The first one is on your guidance on NPLs.

You're guiding for 1.8%, but you ended the year with 1.2%, 1.3%. I just want to understand if you expect deterioration throughout the year.

Then my second question, which is also linked to this one, is regarding the potential regulatory changes. If we look at your write-offs, it went up from around 400 million in the third quarter to almost 800 in this quarter.

Just want to understand what should we think about the recurring level for this write-offs going forward in 2026. Then the last one, if you could comment on your updated estimated impact from the potential changes from the interchange would be good.

Thank you so much.

Okay. Thank you.

In terms of NPLs, our guidance, as you can see on the screen, we usually guide below 1.8%. We expect some deterioration, normal or regular, around 1.5%.

We wanted to have room for specific cases, that is what was happening for the whole year. At the end of the year—and I will move to the second one—at the end of the year, we managed to reduce the NPL to 1.3%, 1.28%, based mainly on the foreclosure of one of these large customers.

We foreclosed many flats from a building. Then in the other one, we managed to restructure, and they paid at least three payments during the year.

That's the main part that is on the move from NPL to regular ones. As you mentioned, we wrote off—usually we do at the end of the year—this, we evaluate all the loans that has been past due.

With the new methodology of provisions, also we validate the possibility of recovery, because we have most of them are on the legal process. We decided to write off all the ones where we don't see possibilities of recovering.

That is around $300 million pesos that you can see on the quarterly report that explains the increase. We don't guide, or we don't have an expected regular amount of write-offs.

Mainly we can project in consumer or mortgage or small businesses, but in large or what we call empresarial, we don't forecast write-offs. We don't see a large amount in the next two or three quarters similar to the ones on the fourth quarter, but just regular, day-to-day.

In consumer, we write off regularly once they reach 180 days, 6 months past due. In small businesses, basically after 1 year and a half, 18 months.

In large business, is really when we have the certainty that there is no possible recovery. The main impact that we see on terms of regulatory changes is not in write-offs, even though the regulation change and it will take longer to do the deductibility in taxes.

The process is similar, and for this year, the rule is that after 2 years of starting the legal procedure or suing the customer legally, we can write off. Usually we take longer, then it won't affect.

In the large customers, we take longer than that period. The other one that is already reflected on the net income growth is the non-deductibility of the 75% of the IPAB or the IPAB.

As the government say that is more a tax than an expense. Then we cannot deduct the 100%, only the 25%.

You will see that our tax effective rate will be increased in the next quarters due to that change. Is the only real, material one.

The other ones will not have a lot of impact, at least for us.

Okay. Thank you.

Could you—

In terms of the interchange, it's still on consultation. The request for information from the government to the many different entities that we participate on the payment market is finished the next Friday, the 31st, officially 31st, the Saturday, but the next Friday, they are open to receive feedback, and then they will decide if they applied the change to the interchange fee.

Right now, we are not considering any change in our budget. We are considering the same level of fees, both on debit cards as well as in credit cards, as we will wait, and we are expecting that process to finish during the next two quarters.

Perfect. Then just a follow-up, if I may, just on your effective tax rate.

You mentioned that you expect to increase in the next quarters due to the IPAB change. Could you give us some color here on the expectation of the levels that could go up?

Yes. It has been between 25%, 26% for the last quarters, and we expect it to move to 27%, 28% for the next quarters.

Very clear. Thank you so much for your help.

Hi everyone, and thank you for the opportunity of making questions. I have two here on my side.

First, it would be interesting if you could provide more details on what should be the main segments and regions driving loan growth this year, and also comment if you do believe any new resolution or agreement in the USMCA deal is necessary to reach this 5% to 10% loan growth or eventually a resolution on this topic would be a potential upside risk to your loan growth numbers. For my second question, Regional finished the year with nearly 15% capital ratio.

If you could also remind us what is your target capital ratio, and what should be your dividend policy for 2026, and also comment that if you eventually be a bit below, a bit above the target capital ratios because of eventually a potential weaker loan growth, if it would make sense to expect any additional payments that you usually pay compared to historical levels. Thank you.

In the first question, I will move to the second part first. No, our budget doesn't take into account an immediate solution or agreement, but it considers a better second half.

That's where is implicit, but it will be more an upside risk than a downside risk if there is not an agreement. We are expecting it for October, even though the dates that the government, especially the Secretary of Economy, he mentioned the July date that is on the agreements, on USMCA agreement.

Our improvement is only on the last quarter. Then for the most part of the year, it's not included any benefit or improvement from the USMCA agreement.

It includes a small improvement due to the rate reduction. It's in all the regions.

It's more by segment than really for region. It's mainly on small businesses, small and medium, not only small, and in terms of products also auto.

Auto lending is a segment where we have been growing around 20% because it's growing both in Banregio as well as in Hey. Basically will be that the two main segments.

Large customers will be in line with the guidance, between 5% to 10%. The other two are above 10%.

That will be. In terms of capital ratio, yes, and as Manuel mentioned, this weekend we will have the spin-off, the migration of the customers of Hey Banco to Hey Banco legal entity, or the new license, their own license operating fully, because right now is operating just with the equity.

Say that, the capital ratio for Banco Regional will improve, and yes, we are planning to present to the General Assembly an dividend. We will follow the same strategy that we are following for the last three years, that is to pay the 25% payout after this General Assembly, the Ordinary General Assembly that will take place someday in April.

We have not yet defined a specific date. Then in October board meeting, we will again review the possibility.

We see, as we mentioned in last quarter conference call, that there is a higher possibility to pay the fully 50% this year once the Hey migration is done.

No, that's clear. Just one quick follow-up.

What would be the gain in capital ratios from the spin-off of Hey?

Because we will migrate the around $10 billion pesos loans from Banco Regional legal entity to the Hey Banco, but Hey Banco already have the equity, then it will be reduced the loans in Banco Regional, and it will be very low reduction on the equity. It will be not proportionally, because if you remember, last year we paid dividends to capitalize or to increase the capital of Hey Banco legal entity.

Then basically the short answer is the 10 billion will be reduced on the loan book of Banco Regional without a further significant reduction of the equity.

Thank you.

Thank you. Hi, good morning Manuel, Enrique, and Alex.

Thanks for the opportunity to ask questions. The first one is if you can provide a little bit more color on your NIM expectations.

You guided between 6% to 6.3%, and I remember you ended with around 6.3%, so that would imply a NIM pressure of 30 basis points, no, in the low end. What is the level of interest rates that you are assuming for 2026, and how are you picturing the lower rate to go throughout the year?

If you think it will be throughout all the year, in the first half? It could give us a little bit color on what will be the evolution of the NIM.

Then my second question is in terms of your operating expenses. I believe it was a little bit high than what we were expecting.

It was around 14% for the full year in 2025, and I believe you were expecting more like a high single digit, low double digit. Just wanted to understand if you are anticipating some expenses for 2026, and how should we think about the opex growth in 2026?

Thank you.

Yes. In terms of the policy rate reduction, we are expecting between 6% to 6.5%, or say on the opposite, between two and four cuts along the year.

Our budget is in the middle with three cuts, but the last one doesn't have a real impact. We expect two in the first semester, and one in the second half of the year.

That is about the rate expectancy for us. In terms of NIM, you are right.

As the NIM is an average of one year, we will see the capture of the reduction after one full year of the reduction of the policy rate. Then we expect to continue reducing not all the way of the 30 basis points, but some point in the middle.

As we have been also mentioning in previous conference calls, instead of hedging or something like that, as you have questioned if we are doing, we have increased our investment, our portfolio on Cetes mainly, as a defensive way for at least one year. Our portfolio have increased to $53 billion pesos.

Then that could help to reduce the impact immediately. After one year, we will continue renewing the Cetes portfolio, the investment securities portfolio, that is mainly Cetes or Bondes, government bonds.

In terms of operating expenses, yes, as we mentioned, is basically the same items what we expect for them. That is technology and the expansion plan.

Last year we opened 10 new branches, and for this year we expect around 15, mainly in the first half of the year. Then that's the part that will be not reducing cost.

Even though it's an investment, is reflected as an expense, mainly for rents and for people. The effort that we did in the third quarter for cost reduction on people will be shown this quarter, the first quarter of '26, and for the whole year.

Then in summary, we expect an small increase in costs for salaries and benefits, I guess is the way that is mentioned on the quarterly report, but not yet in the other expenses, nor the ones related to the expansion, nor the ones related to technology. That part should be around mid-teens for the whole year.

In total will be very close to 10%, but as you have access to our split data, at least in four or five lines, you will see that salaries, that is the larger number, will be below 10%, but the other three will not be below 10%.

Perfect. No, this is super helpful, Enrique.

Just a last question. In terms of the strong peso we're having, it's already below 17.5, just wondering if there's a sensitivity for a peso appreciation.

What does that imply for your dollar portfolio? Also if you are seeing it could eventually have an impact in exporters.

Not really. It doesn't have really a big impact.

We have around $16 billion pesos denominated in dollars, that will be the amount that we have in deposits. Then when we do the valuation every month, it will be showed just less deposits.

In terms of loans is half of that, then is around 5% of the loan book is denominated in dollars. Then it doesn't have a big impact.

That's the level we have on direct exporters. As you remember, we have been doing this analysis about exporters and impacts on the USMCA treaty, and is very small the number of exporters that are our customers.

Mainly we have some indirect impacts in terms of providers of exporters, but we haven't seen any large customer that is only dependent on exportations.

Perfect. No, thank you very much, Enrique.

Hi team. Good afternoon.

Thank you for the opportunity. I have two questions.

The first one is on Hey Banco. I think the unit economics are showing continuous improvement, very good traction, I would say, across individuals and businesses.

As you mentioned, it is now an independent operation. Just wanted to ask, how do you see Hey Banco in three to five years?

I think at some point it was mentioned a possibility was an IPO. I know maybe for now it is not the base case, but I think in terms of the strategy, it would be great to hear from you how are you thinking about this asset.

Then related to this, wanted to ask you if the spin-off brings the focus from management entirely back to Banregio, or are we going to see some still split focus or attention in the two entities?

Thank you. Thank you for your question.

The focus remains on Regional, right? Obviously the technology we've been developing here in Hey has already produced great results in Banregio already, we've been very happy with this evolution, and in that sense, I guess the whole group continues evolving in that manner.

In terms of a capital raise from Hey Banco individually, I think it will remain a question about ROEs, right? We will see a better capital cost if we have an ROE above Banregio.

In that sense, we want to continue evolving Hey Banco to have more credit, because we still have a super app on deposits, and we've been having it for many times, for many years. In that sense, we still continue growing, and that's the main focus, as you can see in our guidance, and that's will continue to bring on more profitability.

In that sense, we want to maintain a continue growth on income from fees, which will, I think, be happening in the next 12 to 24 months. It takes a little bit more time, but definitely something that will continue drive profitability going forward.

Hey Banco in that sense is a complement to Banregio, because as I said, Banregio doesn't want to be like BBVA that has 2,000 branches, right? Banregio is will continue growing branches, I think up to 350 at the most, right?

In that sense, Hey Banco has the reach to go to all the other segments, right? The segments that are more prone to productivity, more prone to understanding of financial products better because they understand technology better, and in that sense, Hey Banco's strategy and offering will have a greater impact.

Banregio as a brand is not working for in that sense, it's not something that it will work for everyone, right? In that sense, Hey Banco complements it very well as a brand portfolio in that manner, right?

We are the ones that are the best-in-class in Mexico in terms of the amount of products we have that digital offer. No one has, no Nu bank or Revolut, even though it's only started, we are the entity that has the most digital products out there, both for individuals and for sole proprietors and businesses.

We have the full spectrum. We have all the services, we have payments, we have everything going on.

In that sense, what we have right now is the opportunity to focus on growth. That will drive profitability and efficiency and being able to really have the best-in-class productivity entity as a Regional out there.

I think it's amazing what we have been able to achieve, and we're very happy with the results, and profitability's been a pretty good effort on our side, and I think, as you might know already, that's what we thrive on. There's all other players with other plays, which is fine, but ours is a story of consistency, right?

In that sense, we're very happy with the results and how things are evolving, and we're open for any opportunities that might arise on that matter, right?

No, great. If I may, just two quick follow-ups on sensitivity.

You mentioned, I think on Eric's question, you're not considering the impact of a higher interchange fees. I don't know if you have run any sensitivity in terms of if the law passes as it is suggested, if you have any sensitivity as to how much it could impact earnings.

Then also if you could remind us of your NIM sensitivity. I think it was around 13 bps per 100 bps in TIIE, right?

Just wanted to confirm if this has changed, or you have adjusted slightly this sensitivity.

For the second question, our sensitivity for the whole loan book is around 13 basis points. For the whole asset book.

For the loans is around 15, as you mentioned, but the total NIM is around 13 per 100. As I mentioned, it takes a full year to absorb the change, or to reflect it in the full NIM, yearly NIM.

If you do the calculation of quarterly or monthly, it will be reflected faster. In terms of the sensitivity about the interchange rate, we have done some scenarios where, but obviously is reduced the income in terms of the one that we present as transactional, but we is not material for Regional.

That's as much as we can say, because it would be a speculation in terms of, because we see an upside in the acquiring business if we interpret correctly the proposal, but then we prefer to wait and see the final proposal for both sides. It has an impact, negative impact, a reduction of fees in the issuing business, but it has a potential benefit in the acquiring business.

Not totally offsets one to the other, but it could partially offset the impact.

No, it was very clear. Thank you, Enrique and Alex.

Thank you to

you.

Hi, good morning Manuel, Enrique, and Alejandro. Congratulations on the results and on the spin-off for Hey Banco.

My question is also on the non-interest income lines. Can you help us with the outlook or guidance on what are you expecting in terms of growth for this year?

The evolution of fees has shown 13% in 2025, driven by card and merchant fees, what growth rates can we expect for these income lines of commissions, insurance, and Hey Pago? Thinking on the quarter, there was a $238 million peso other income line.

What is driving this income? Can you give us some color on this?

Yes. I will start with the second one that is very direct.

Is the last quarter we explained that we did some provisions based on our risk methodology that we were using at that moment for both mark-to-market on the derivatives that we sell to the customers, not the ones that we have. The other big part, that it was the largest provision that we did, it was related to the increase of the securities investment that it was we were increasing the portfolio to offset the impact of the rate.

Say that, as it was a very high number for us, we did some advisory, we paid that advisory to understand if there was a better way to calculate this risk. The result is that we freed up or reduced the provision mainly on the investment securities.

The mark-to-market of the derivatives, we didn't change the methodology, but is very sensible to the peso-dollar and to the expectations. We use vectors that we buy from public entities, mainly the Bolsa, Valmer and Bolsa companies.

That's the main. There is a third line that we, usually in December, we validate the level of provisions of other items, and some years we increase the provision.

Is not related to credit risk provision, is more to the operational risk. This was a very good year for us in terms of fraud prevention, then we freed some provisions over there.

For the next year, we expect a full year very similar, but that will be a full year, doesn't consider an specific quarter, because you will see that third quarter was very negative and fourth quarter was very positive. No, we expect a very similar full year, and we will continue monitoring the methodologies that our risk department uses to do that provision.

Thank you Enrique. For the guidance for the growth rates of other non-interest revenue lines?

We usually don't guide. It will be around 10% what we expect growth, mainly drive by the acquiring business and the insurance business.

As you can see, the market-related ones, that is mainly foreign exchange business, was reduced, both for the reduction on the spread in the foreign exchange business, as well as all the new controls that we put in the second half of the year to align to the USA regulation, not only to comply with the Mexican one, but also we are fully compliant with the USA regulation.

Thank you, Enrique. One last question.

Correct me if I'm wrong, but I recall that you mentioned in the past that all the payment business is going to be migrated to Hey Banco. Is that still the case, and which lines would be affected by this?

Part of the—yes, the merchant business or the acquiring business will be migrated to Hey Banco. The business we call it Hey Pago, but will be seen in the books of Hey Banco the income, yes.

Perfect, clear. Thank you very much, Enrique.

Hi. Good morning, and thank you for taking my question.

Maybe taking a step back, can you give a quick overview of where you see upside and downside risk, in another way, what will it take for you to get to that 10% net income growth versus the 5%? Thank you.

I guess it will depend on loan growth, for sure, because that's our main driver. Wholesale lending, which is some, as you've seen, the increase has been sluggish.

In that sense, things I think might—because in that sense, the cost of funds, we have ample liquidity, we have ample capital. We have very good results in cross-selling, fees are growing at a very good rate, I think the last thing that would pass would be loan growth.

I think that's and in loan growth, we have great results right now in auto loans, mortgages, NPL ratios have been in great control. In that matter, I just pinpoint the fact that wholesale, as has been sluggish, and in that sense, will depend much more on macro and the trade policies that we already experienced.

I think next year, the renegotiation of the treaty will definitely have a better understanding on where we're at and how things are going to continue to evolve. The other thing is that we are relative small compared to the other players.

We've already taken advantage for sure and of taking more market share, and that's why we continue to evolve. We have that in our favor.

That's why we're growing at a much faster pace than our competitors, and but obviously there's the headwinds, as I said before.

Yeah. That answers my question.

Thank you.

Thank you.

Hi. Thank you so much for taking my question, and congratulations on the results.

Just a quick follow-up on Hey Banco. After the spin-off, should we expect any change in strategy?

Should we expect more aggressive growth with Hey Banco? In the past you've mentioned that you concentrate more on relatively higher-income segments, and not necessarily go after the same customers that Nu bank would go after.

Does that still remain the case, or would you be a bit more open to going after Class C, Class D customers? Thank you so much.

No,

the short answer is no, we are not changing the strategy in terms of growth aggressively, at least not at the beginning. Right now, our full technical and operative team is focused on the migration that will happen next weekend starting February 1st or February the 3rd, that is the first business day in Mexico on February.

In terms of strategy for the full year, we will continue growing small business lending. That's the main line of growth and the main focus right now.

We will be focused improving all the credit and credit scoring, and not only the credit scoring, automating the whole lending or loan origination. On the deposit side, on the individual side, we will continue growing credit card, but not aggressively, faster than this year, but not aggressively, and the same for auto lending.

In terms of market positioning, is the same. We have been mentioning that we want to focus on customers that are already banked.

We are not competing in terms of—we don't know what is the market for Nu bank, but I guess what you mean is for unbanked or for inclusion. No, that won't be the case, at least not for this year for Hey Banco.

We believe there is still—this week, we saw that BBVA launched a new promotion for their 34 million customers they say they have, and we believe they have the 34 million customers. We will be very happy to take 1 million out of that.

No, is enough a lot of customers. If you add up all the millions that Santander, Banamex, and Banorte have, and HSBC and Scotiabank, that's our main aim to gain market share on the already banked customers, mainly because we want to do cross-selling, and we want to make to became the main bank.

As Manuel mentioned, we're very happy with all that we have built, and we have all the financial products in already working in Hey Banco. Then that's our main market.

It's not really to go for inclusion or new customers to the banking sector.

No, very clear Enrique. Thank you so much for that.

If I could just quickly ask about competition, and I'm not just referring to Hey Banco here, but the general environment that you're seeing for the banking system, both on the lending side and on the deposit side. Are you seeing more competition, and especially on the deposits with you giving higher yields with Hey Banco, a lot of the other digital players are giving higher yields, do you see that chipping away any of your deposit base for Regional, for the core bank?

It would probably be less impactful for you than for the universal banks, but do you see any impact, any movements in the system in the dynamics for both loans and deposits? Thank you.

No, for sure that's not the case.

Okay.

No, no. All the digital players gave a great yield, but only up to 25,000 pesos, right?

Those very small accounts are not of an interest to us as much, because the cross-selling ratio there is like very low and very unprobable compared to other regions like Brazil, for example. In that sense, no, we're not seeing any pressure.

The cost of funds has been in a very good rate at this moment. It's been not any pressures, and we see no risks going on forward.

We have a lot of deposits, we have a lot of liquidity.

Yeah.

Yeah.

Very clear Manuel. Thank you so much for that.

Thank you very much.

Thank you. Hi Manuel, hi Enrique, Alejandro.

Actually on this point on deposits that Neha asked, I have a follow-up. Maybe your guidance is looking a little bit conservative for core deposits, right?

It's 5% to 10%, that is similar to the loan growth. When we look this year 2025, you grew your deposits way more than loans, right?

You keep bringing activity, clients. I understand the challenge on lending given uncertainties in Mexico, but couldn't you see deposits growing more and your LDR continue to drop and maybe not a funding increase, but a funding reduction for you and maybe a tailwind for margins?

This is the question number one. Then I have just a follow-up on Enrique's point about the write-offs moving to 2 years on tax deductions.

I just want to confirm that the write-off period is not changing. Like the deductions for tax purpose is changing, but the policy of write-off remains the same.

I'm asking this because of the NPL ratio increase, I just want to confirm that there is nothing changing on the term of the write-offs, and this is not impacting NPL as a result. Then I can ask a third question if there is time.

Thank you.

In terms of write-offs, as I mentioned, the main change that it was already published is that the deduction, the tax deduction will only take place after 2 years of the—on the past due, basically is when the loans have 2 years. As I mentioned, right now for business, we have an 18-month period to do the write-off, then will be increased from 18 to 24.

It's not really material. We will continue doing provisions, then mainly temporarily will increase a little bit the cost of risk, but within an 18-month period will be exactly the same.

As I mentioned, for the large customers, is not based on time or even on the legal status, is really on terms of possibility of recovery. Then the short answer is no, we are not changing our policies, because even though we could do the write-off, the law doesn't prohibit us to do the write-off.

Is the time when we can do the deductibility in place, then is not material. For the small loans, for consumer, hasn't changed at all.

Is for around 36,000 pesos and above where start the changing. In terms of funding, we have two very different strategies in Banregio and Hey.

In Hey, we have been reducing the rate. We are obviously monitoring to the large players on the digital banks, and as you can see, most of them or all of them have reduced the rate, and as Manuel mentioned, they have thresholds, caps, until 25 or the largest one is 250,000 pesos, but not above.

Then we will continue reducing the rate. As well in Banregio, is not floated, but is related to the Cetes cost.

Then customers came mainly for the service to Banregio mainly. Then if it keeps growing as long as is an additional income, even though it could hurt the NIM, we prefer to have more customers and more liquidity at the right cost.

No, super clear Enrique. No change in the policy of write-offs, or no major change, and what is changing is just the deductibility, this should not impact the NPL ratios or anything like this.

On funding, even if there is opportunities here, you are going to be cautious, maybe it's better to keep liquidity high and keep some deposits, right? That's the message.

I just have a follow-up on opex, and for this year, I think the message is clear. You have some pressure on a little bit on the top line, and there is a carry, right, on the cost from 2025 into 2026.

Looking ahead, would we see Regional, or Banregio and Hey together having lower opex? Why I'm asking this question, in the past 4 years, I think your opex was growing between low to mid-teens, right, low teens to mid-teens.

Inflation in Mexico is lower. I know you are growing to new geographies, there is a lot happening in Hey, but just checking if maybe in '27, '28, we could see opex moving to single digits.

Thank you.

For '27 maybe not, but for '20—well, first, as I mentioned, the full opex including personnel plus everything else, this year will be in the low teens. For '27 and '28 should be below 10% if inflation remains where it is right now, 3.7%, even 4%.

I was explicit splitting personnel that should continue the reduction based on the use of technology, improvements in efficiency, but where the carry is in the investment that we are doing both in technology and in the expansion. Say that, if you add up everything as opex, yes, we could see in '27 or '28 a 1-single-digit increase.

Super clear Enrique. Thank you very much, and congrats.

Thank you Yuri.

Thank you.

Thank you everyone. Thank you for your participation today.