Banco del Bajio SA Institucion de Banca Multiple Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ernesto Gabilondo - BofA Securities - Analyst : Thank you. Hi, good morning, Jorge. Welcome again to the Bolsa. Hi, Ramon. -- thanks for the opportunity. I have three questions from my side. The first question will be on [Bolsa's] new vision for Bolsa. The consortium did a very good job in maintaining OpEx under control, although I think there were some questions on the revenue side. So I would like to see your initial thoughts on your new strategy at Bolsa and what will be your strategy to prevent due to the listing in the Mexican exchange or to prevent have more listings in the US when compared to Mexico. For my second question will be to the earnings inflection point that we saw during the quarter. There were like four quarters in a row with earnings contraction year-over-year, and we finally saw this inflection point. So just wondering if this could be maintained and what do you think could be the rationale behind it. And for my last question will be on your new projects and the regulatory framework. If you can share with us any color, any update on the time line of the counterpart for the bonds market and what is the last of the on the brokers' regulation, I think will be very helpful. Thank you.

Question: Ernesto Gabilondo - BofA Securities - Analyst : Thank you, Jorge going to Ramon, and I wish you the best on this new process. Just a follow-up in the last one in terms of the regulatory framework. I don't know if you have any update on the Mexico securities law because we thought it was coming, I think, during this next month. So any update on that will be helpful.

Question: Ernesto Gabilondo - BofA Securities - Analyst : Perfect.

Question: Ernesto Gabilondo - BofA Securities - Analyst : Excellent. Perfect. Thank you very much. And just a last question in terms of guidance during the pandemic, Bolsa stop providing guidance as well as other Mexican financials. But then all of them are already providing guidance in the past was I was kind of guiding EBITDA margin and a range on the net income growth. Is it something that you can evaluate now for the future to provide again guidance?

Question: Ernesto Gabilondo - BofA Securities - Analyst : Thank you, Ramon. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 4:00PM, BBAJIOO.MX - Q2 2024 Banco del Bajio SA Institucion de Banca Multiple Earnings Call

Question: Edson McCrea - Sumo capital - Analyst : Hi, good morning and thank you for taking the questions and happy to work with Jorge and all the team under tremendous opportunity as a market participant off. My first question is relating to the initial strategy priority that Jorge mentioned specifically about the retail market. Because when you analyze the number of accounts with the broker dealers, it has been increasing since five years ago. So my question is, do you have a plan in order to achieve more market participants from the retail side of the business. And my second question is a follow up regarding on what Jorge said about the inventories, because I'm thinking about the products and what is happening around the margins. So my question is, looking ahead, is this a possibility in the near term plan that we or you are considering CymaBay's to exploration options as a new product for the coming years. Thank you.

Question: Edson McCrea - Sumo capital - Analyst : Okay, if I may our [Garden Bar] there in the press release mentioned the revenue were MXN111 million. And by my question is Banco Costa Rica, how much represents for that revenue as outflow from volume?

Question: Edson McCrea - Sumo capital - Analyst : 3%?

Question: Edson McCrea - Sumo capital - Analyst : Okay. Thank you so much.

Question: Carlos Gomez-Lopez - HSBC - Analyst : Hello, good morning. Thank you for taking my questions. I'll first welcome to M, Alegre, and we look forward to meeting you and talking to you and wish you a lot of success. Our first question coming into the role, I mean, you were here at Maxtor many years ago. How do you find the company coming in compared to when you left? And then how do you think this has evolved over the years? That's very generic, I realize, but what's your first impression? And second, as you review your strategy, do you expect to make any changes to your capital management policy right now? You're paying out about 80% in earnings, buying back about 20% of the remaining earnings? Is that something that we should expect to continue or it will be under review? Thank you so much.

Question: Carlos Gomez-Lopez - HSBC - Analyst : Thank you. And on the dividend? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 4:00PM, BBAJIOO.MX - Q2 2024 Banco del Bajio SA Institucion de Banca Multiple Earnings Call

Question: Carlos Gomez-Lopez - HSBC - Analyst : Thank you so much.

Question: Marlon Nevin - JP Morgan - Analyst : Hello, everyone, and thanks for the opportunity of asking questions. And I have a very quick one on cash flow because we saw operating cash flow declining on 5% year-over-year in a quarter. And this company our attention because earnings actually grew around 8% year-over-year. So can you help us understand what drove the decline in cash flow, please?

Question: Marlon Nevin - JP Morgan - Analyst : Yeah. I mean, operating cash flow we got like the cash flow in the quarter was like MXN466 million and this is like 6% below the second quarter of last year. So we just wanted to understand why the decline when earnings were growing?

Question: Marlon Nevin - JP Morgan - Analyst : Perfect. Well, that's very clear. Thank you.