Good morning, welcome to the second quarter 2023 Gentera's conference call. I would like to turn the call over to Mr. Enrique Barrera, Investor Relations Officer of the company. Sir, you may begin.
Thank you. Good morning, and thank you all for joining us for this, and for your continued interest in Gentera. I'm Enrique Barrera, the company's Investor Relations Officer. I'm very pleased to introduce our management team. With us today are Mr. Enrique Mayol, Gentera's Chief Executive Officer; Mr. Patricio Diez de Bonilla, Banco Compartamos Chief Executive Officer; and Mr. Mario Langarica, Gentera's Chief Financial Officer. Enrique Mayol and Mario Langarica will present Gentera's results for the second quarter 2023, as per the report that was issued yesterday. Patricio Diez de Bonilla, along with Enrique and Mario, in our earnings release. If you did not receive a copy of the release or you have any questions, please do not hesitate to contact our investor relations department in Mexico City. If you are a member of the media, we ask you to contact us directly.
I would now like to turn the call over to Mr. Enrique Mayol for his presentation. Enrique, please go ahead.
Hello, everyone. Thank you, Enrique. Thank you for your interest in our call and the remarks that we have prepared for you today. Let me start by saying that even when we are living hectic and turbulent times, Gentera's operations continues with good and solid results. We are delivering results as defined by our guidance. We will continue growing through each of our business units. We feel very excited about the opportunity to look ahead. Let me begin by pointing out the main messages that I want to deliver today. Then I will elaborate more on each of them. One, w e are delivering good results. We will end this year in line with our guidance. Two, w e see great opportunity to keep on growing and increasing our market share in an environment that has been complicated for most of our competitors.
Three, the quality of our portfolio remains at very healthy numbers, and this reinforces the growth opportunity that we have. Four, each one of our business units are growing. Five, as you have seen, our operating expenses increased this quarter. Mario Langarica will provide more detail on this. However, I can tell you in advance that it mostly has to do with the capture of market opportunity and expansion strategy that we are putting in place in order to accelerate our growth rates during the second half of the year. Let me give you some specifics on this. Gentera grew 8% in clients and 13.7% in portfolio on a yearly basis. For seven consecutive quarters, we have been growing our portfolio with record figures, quarter by quarter, reaching out 57.7 billion pesos at the end of June.
Cost of risk is at 10.2%, which is below our 10.5% guidance. The quality of the portfolio continues to improve and stands at 3.2% at the end of this period. As you remember, we have said that our goal is to maintain NPL between 3.5% and 4%. Look, we look even better than expected. Net income for this quarter is MXN 1,144 million, a figure that is below previous quarter results. I understand that there will be questions regarding this. However, let us address this more deeply in a moment, and for now, let me tell you that we feel comfortable with this result, and we are certain that we are not compromising our guidance for this year. What is our expectation and business strategies for the rest of the year?
In fact, we see a great market opportunity in Mexico as well as in Peru. Our operation is strong. We have the financial position to address a growing market demand. At the same time, many of our competitors are struggling with funding and sometimes with operational challenges as well. We believe we are in a privileged position to take the opportunity. This market conditions give us the chance of growing our client base and portfolio even faster. Actually, in the last 12 months, in Mexico, we increased our market share, specifically in group lending portfolio market, from 58%- 60%. In the individual lending portfolio, we increased our share from 14% - 20%. Even in Peru, market share increased from 7%- 8%, and we are already the number two player in terms of number of clients, only after Mibanco.
Considering all this, I am happy to announce that we are increasing our portfolio guidance for this year. Originally, we guided a portfolio growth between 12% and 14%. After the first half of this year, we expect our portfolio to grow between 14% and 16%. In order to continue capturing this growth opportunity, we have been making investments in our infrastructure to increase our capacity to address potential markets. This is the main reason why our operating expenses are higher this quarter. These investments that we are making are mostly in the new loan officers hiring, as well as in sales incentive expenses in Mexico. Increasing our sales force capacity will not only allow us to grow our portfolio and capture more market share, at the same time, we will also be able to maintain the productivity of our loan officers.
Another investment that is included in the operational expenses is the 12 new branches we recently opened in Peru in order to have a better presence in places with high growth potential. This strategy will allow us to increase our portfolio guidance for this year while maintaining our guidance in terms of EPS and our ROE above 20%. In 2023, Gentera will deliver again. As you can see, we have a promising second half of 2023, and we look forward for an even better 2024. Closing this year, as I'm describing, will give us a higher portfolio since the beginning of next year, which will allow us to have a double-digit growth in portfolio and net income.
If we combine this with operating expenses growth below 10%, with a low cost of risk and a potential lower cost of funds, 2024 looks really promising. Regarding our digitalization and modernization initiatives, we feel excited and encouraged by the results we are having up to now. As I described in previous calls, the use of digital data has given us the possibility to add more value to our customers through cross-selling. In Mexico, we are recently improving processes related with our operational model, specifically in our loan officers' journey. At the end, our goal should always be to provide a more convenient offer to our customers, and at the same time, to obtain a higher productivity and become more efficient as a company. Peru has relevant progress on its digital platform for the credit process.
In the individual lending side, we already have 100% of our loan officers operating with a platform that gives them the autonomy to process clients in a more decentralized way and a more efficient way. In the group lending side, we already have 50% of our groups dispersing their loans through Bim, which is our electronic wallet. As you know, ConCrédito continues growing with a branchless channel strategy through digital platforms that allow empresaria to operate more efficiently. By the way, I want to point out that ConCrédito continues improving the quality of its portfolio. We can say that NPLs are under control, and we are about to see solid growth again during the second half of the year.
As we have said before, a balance between growth and control is the name of the game in the microcredit business, and our team has proved the experience they have in managing this cycle. Talking about the rest of our subsidiaries, I won't get into details since this information is already in our press release. However, let me just tell you that via Yastás, Aterna, and Fundación Compartamos continue operating with very good results. Well, thank you for your interest on my remarks. Now let me open the space to Mario, who will provide specific financial remarks that we hope will help you with your analysis. After that, we will also have Patricio in the call to answer any questions you may have. Thank you, and go ahead, Mario.
Thank you, Enrique, and good day to everyone. As always, we appreciate your interest in Gentera. As Enrique signaled in his remarks, we're very excited with the results in the past quarters and in the first semester of 2023, and we're very enthusiastic with the current opportunity and the future expected performances for Gentera and its subsidiaries. I will focus my remarks in the following concepts. Number one, net income and profitability. Net income for the first semester of 2023 amounted to MXN 2.47 billion, the best figure for any semester in our history. Their controlling participation amounted to MXN 2.35 billion, representing EPS of around 1.49 and a 6% growth compared to the EPS reached in the same period of last year.
It's important to remember the seasonality of our portfolio, highlighting that typically, the second semester tends to be stronger. The second semester of the year tends to be stronger in terms of credit, demand, and thus, in the generation of a stronger net income. As a consequence of this, we expect to see an acceleration of net income to compare to what we have achieved in the first semester of the year. With this, finalizing the year on the EPS range guided for 2022. As of first semester 2022, Gentera controlling ROE reached 19.6%, which is on track to meet the expected 20 objective for the year. Important to note that Banco Compartamos, our largest subsidiary, continued with very strong levels of profitability, representing in the first half of the year an ROE of 26% and an ROA of 8.5%.
Compartamos Financiera ROE for first half 2023 stood at 17.2, above 16.8 last year. Compartamos ROE improved to 19.9 from 15.6 last year. Number 2, portfolio growth and margins. As Enrique mentioned, Gentera finalized the quarter again with a historic loan portfolio over MXN 57 billion, growing 13.7% compared to 2Q 2022. Given the strong dynamic that we saw in this first half of the year and the market opportunity that we see going forward, we decided to increase the guidance for the loan portfolio growth. It is important to signal that we expect to have double-digit growth in our 3 current subsidiaries by the end of the year.
Following this portfolio growth, net interest income for the first semester of the year amounted to MXN 12.8 billion, representing a growth of 7.4% compared to the same period last year. These results were driven by a strong 14.6% growth in interest income, amounting to MXN 15.3 million, with representing close to MXN 2 billion growth compared to first semester of last year. This solid performance was strong enough to compensate an increase in MXN 786 million in financing expenses. For your convenience, we're presenting the separate effects of financing expenses and origination and leasing agreement line, so you can identify these movements more easily in the press release.
The net effect resulted in a NIM of 40.8% and 40.1% for the first semester, both of them slightly better than the 39.7% and 39.8%, which in the respective quarters. Provision for loan losses for second Q 23 amounted to MXN 1.42 billion, 24.6% higher than in second Q 22. This higher level of provisions is mainly explained by the strong growth portfolio in all of our subsidiaries. Growth in provision was compensated by NII growth, resulting in net interest income after provisions of MXN 5 billion, a 4.7% growth compared to second Q 22. In second Q 23, NIM after provisions stood at stable 31.8%, compared to 32.1% in second Q 22.
Considering NIM for the 6-month period of the year, it stood at 31.2, compared to 32.1 in the same period last year. For 2023, we expect NIM before provisions to move around 40% and NIM after provisions, around 31%, a little higher than originally expected at the beginning of the year. Number 3, asset quality. Custom rate in the first half of the year amounted to 7.3, which is better compared to our guidance for this year, where we expect to move around 10.5%. NPLs is still at 3.21, which is better again for our expected range for the year, which is between 3.5 and 4.
Allowances amounted to MXN 4.44 billion at the consolidated level, and our coverage ratio for the quarter amounted to 239.6%, which is a very solid and adequate level. 4, net fees growth. We have signaled in other conference calls, we have seen a strong evolution in net fees in the past eight quarters. This quarter was not the exception. We have a net effect of MXN 591 million, representing 16% annual growth. Considering the full semester, the net effect was MXN 1.3 million. I can tell you that this growth has been mainly the result of the solid contribution of the insurance business with commissions and fee income line, and also supported by different fees generated at Compartamos Financiera, Comparte, and the bank.
Considering the first semester of the year, commissions and fee income stood at MXN 1.54 billion. Meanwhile, commissions and fixed expenses in the same period have been well under control, finalizing in the first half of the year with MXN 253 million. It is important to note that as of the second quarter of 2023, 75% of our credit disbursement transactions have already been executed through Yastás and Banco Compartamos branches. 40% of the credit collection transactions are happening in those channels. Very important, now more frequently through our mobile banking app, around 6% of the transactions. Given the strong evolution seen in the first half of the year, our expectation for net fees has moved upwards, and now we anticipate a growth around 30%.
As you can see, net fees from Fiinlab contribution to the P&L of Gentera, which is mainly explained by the cross-sell of insurance products, as described before, and the larger use of our internal network. 5, operational expenses. Operational expenses for the first, the second quarter stood at MXN 4.17 billion, representing a 13% growth compared to the same quarter last year. As you can see, and as we have explained in previous calls, our expenses are accelerating. It is important to say that this growth in expenses is mainly explained by the very strong growth opportunity we're seeing both in Mexico and Peru, that implies hiring around 2,500 employees in the first half of the year. 75% of these employees are a sales force.
Incremental variable compensation is also an important part of this growth. Obviously, the variable compensation happens mostly at the origination of clients and credit. The second source of growth in expenses is the strategic investments that we are executing for the modernization of our operation that we have explained in depth in the past. These investments will bring operational expenses above our original guidance for the year, around 13% over 11.5%. It's very important to say that these initiatives will allow us to capture the strong market opportunity, and an important part of the revenue will be generated in the first quarters of 2024 and going forward. Having said this, our expectations is that operational expense will grow around 13% over here, but bringing this growth back to single digits in 2024. 6. Liquidity, funding, and capitalization.
We continue maintaining healthy liquidity, strong access to funding, and robust capitalization levels. Our liquidity position amounts to MXN 9.8 billion, and by the end of the second quarter, Gentera's capital to assets ratio amounted to 33.3%. Banco Compartamos' ICAP amounted to 35.6, and Compartamos Financiera's solvency level to 19.5, and ConCrédito's capital to assets ratio to 58%. Regarding funding, we continue strong access to different incremental funding sources for the holding company and our subsidiaries. We have kept a healthy balance in the composition of our liabilities in short and long tenors, with fixed and floating rates. Our access to funding sources are robust and sufficient to fund the growth and also to take the advantage of the opportunity that this year and next year will bring.
We expect that for 2024, the rates will start reducing, that will also add an improvement to our bottom line. Final remarks. To conclude my presentation, as you can see, it was a very good first semester, and we have a clear objective to deliver another strong year, in which Gentera portfolio will reach, again, its highest figure ever. Our portfolio penetration will be again strong, delivering an ROE above 20%. For 2024, we expect, as Enrique mentioned, a very good combination of a strong average portfolio, generating incremental interest income with reduced interest expenses, satisfactory cost of risk, and operational expenses under control. That should allow us to keep ROE above 20%. The good results achieved so far make us feel very excited with the opportunity that we are seeing for this and future years.
All the team is strongly motivated to continue working hard in serving millions of clients in their different financial needs, and at the same time, keep generating shared value for all. That's all for my remarks. Thanks for your attention. We can now move forward to the Q&A session. Operator, can we move on into the Q&A session, please?
Ladies and gentlemen, to ask a question, please press star one on your telephone keypad at this time. If you are using a speakerphone, please make sure that your mute function is turned on, to allow the signal to reach our equipment. The first question comes from the line of Ernesto Gabilondo with Bank of America. Please go ahead.
Hi, good morning, Enrique, Patricio, Mario, Carlos. Thanks for the opportunity to ask questions. My first question is on the outlook. Could you provide us some update on what could be the potential impact of El Niño? Also, we have seen some demonstrations that are taking place in the country, asking to remove the president and to call for early elections. Any update that you can give us an output for the country will be very helpful. My second question is on ConCrédito. We continue to see you are privileging asset quality over loan growth. As you mentioned, that probably you can accelerate in the second half. ConCrédito's ROE is back to 22% in the 2Q. What would be the ROE that you are targeting for this next year at ConCrédito?
My last question is on your expectations for earnings and ROE next year. I'm thinking that you can keep double-digit loan growth with your new branch openings and new hirings, means might benefit from lower rates. As you mentioned, OpEx growth can return to the single digits. How are you thinking about the earnings growth and the ROE when compared to 2023? Thank you.
Thank you, Ernesto. This is Patricio. Let me talk about Peru for a moment. Peru, as you said before, has seen not only social unrest and demonstrations throughout the country. We expect to see them frequently per region or states still in the months to come. However, we haven't seen a demonstration that affects a nationwide operation, the nationwide operation. We will monitor how these social movements evolve and take every action to maintain the operation of Compartamos Financiera. On the other front, climate events are not new, both for Peru or Mexico. We have dealt in the past with hurricanes and El Niño events in the country.
We expect that El Niño will have an impact by year-end and starting next. We will take every action to take conservative approach to monitor not only the operation, but the asset quality of our portfolio. As you have seen in our figures, we have already created additional reserves to deal with such potential impact. In case we see something even further, we will take again, every action to maintain operation while maintaining asset quality. Expectations for Peru are still positive. We will continue aiming for the 1 million customers milestone in the country. We are, as you know, one of the biggest institutions in the microfinance landscape in Peru, and we will continue focus in delivering good results in the country.
Again, something that we should be care of, but we are taking every action to maintain the operation with positive outcome for next year as well.
Hi, Ernesto, how are you? Regarding your second question, ConCrédito, we are happy that ConCrédito is really back to a very healthy portfolio quality, which will allow us to start growing again. The strategy that we implemented has worked, and I believe that the two key factors to succeed on this have been that we've slowed down the growth to be closer and have a better control of our empresaria, and at the same time, we improve our selection and risk assessment algorithms. All this brings us the results that we are looking at the half of the year, and we are expecting the second half, which will start growing again.
The ROE that we expect for the following months and maybe the following year is around 23%. We will maintain the same levels, maybe a little bit higher, as I am describing now.
Ernesto, for your third question, as I mentioned before, we are doing this very strong investment and that includes the growing operation expenses for this year. As you mentioned, we're expecting to normalize OpEx next year, our objective is to bring it below single digit growth. The combination of that for 2024, together with the increase in the portfolio, with increased net interest income and expectation of lower interest rates, a controlled cost of risk, and this effect on expenses, should allow us to have an ROE for 2024 above 20%.
Excellent. No, very helpful. Thank you very much.
Thank you, Ernesto.
Thank you. Next question comes from the line of Juan Valdez with Scotiabank. Please go ahead.
Hi, good morning. Thank you for taking my question. My question is related to the short-term profitability output of the main subsidiaries. Your guidance implies some profitability improvement in the coming quarters. I was wondering what subsidiaries will drive this profitability improvement? You already mentioned expectation for ConCrédito. I'm wondering more about the Banco Compartamos and Compartamos Financiera. Thank you.
Yeah, perfect. Well, yes, it's very simple. Banco Coppel Panamá should follow more or less the same dynamic that I just described. The growth of the portfolio should push interest income. The control of expenses in Mexico should help us improve the margin. Cost of risk is well under control and expenses should stay a little bit there, but we expect to see improved ROE for the bank this year and mostly next year. Regarding Peru, as you have seen, we have already seen an improvement in ROEs. We are following exactly the same dynamic of growing portfolio, control cost of risk and expenses. Our objective is to bring Peru back to 20%, probably in the first half of next year.
Thank you for the comment.
Thank you. Next question comes from the line of Luiz Yanez , with Private Investor Piscot.
Hi, guys. It's Luiz Janz from Santander Asset Management. Hi, Enrique, it's Paco Mario. Thanks for taking the questions. Congrats on the results. Two questions on my side. I guess the first one, on the OpEx side, I mean, if you could talk a little bit about that, more in detail. I mean, you mentioned for this year, you're expecting OpEx growth of around 13%. That means, given what we've seen, that on the second half, you know, OpEx will grow around 15%. Just wondering, you know, how much of that growth is just, you know, stuff that you already have in terms of employees, et c., it's just, you know, higher base that will contribute to the growth?
Or for i n other words, are you almost done with the increase in employees that has been quite remarkable, and as you mentioned, it's for preparations for higher growth going forward, or is there more to come in that front in, in the second half? That'll be my first question.
Luiz, this is Patricio. Before I get into the details of percentages, let me talk about the rationale behind the growth in the sales force. As you might be aware, both in Mexico and Peru, the underserved market is still very large, and we saw that most of our competitors are facing operational difficulties due to lack of funding, mostly. Therefore, we decided to tap into this opportunity. In order to grow faster, we needed to bring sales reps to the company, both in Mexico and Peru. As you have seen, first, as you know, you first hire people, then you train them, and after that process, they will start bringing customers. That's a time lag between the hiring and the time they become productive. This is what you've seen already, no?
We have already the sales or the team that we require to meet the growth expectations that we set before, but you shouldn't expect faster growth in employees either or in Peru or the Mexican bank. Again, we are ready to grow in the second half of the year, and we will set the foundations for a very strong 2024, as Mario just said.
Great. Thanks, Paco, for the color there. On NPLs, as you mentioned, you know, you're they're very comfortable levels at 3.2 below to where, where you're kind of comfortable with 3.5-4.5. If I look into Peru in particular, that seems to be the area where NPLs actually got a bit worse sequentially, and they're actually higher than that kind of desired level. Is that a concern? Is that something you think is temporary? If they were to stay in this, you know, 4.8%, 4.9%, where we saw them in the second quarter in Peru specifically, could that prompt you to perhaps, you know, decelerate the growth in Peru?
You know, within this desired level, at the consolidated level that you mentioned before, the 3.5%-4%, you're willing to tolerate Peru being much higher than that.
Right. Thank you, Luiz. In terms of NPLs, as we have said, in the past, after fast growth, always new customers bring more risks to the table. As you have seen in Peru in the last 12 months after the pandemic, we've grown the customer base very rapidly. We have developed or deployed the group lending methodology into newer states. We've opened 12 new offices in Peru that are growing fast as well. It's normal that after such period, NPL delinquency start to pick up. On top of that process, we saw and we dealt with social demonstrations and whether, I mean, all the climate events that we saw in the northern part of the country.
That has put the risk in certain areas above our levels, and the focus f or the coming months is to bring asset quality under control for the Peruvian operations. We don't think that this should decelerate the growth, both in portfolio or customers. Certainly it's something that we are looking at a top priority in the country.
Great, thanks. My last question, I mean, when I look at your liquidity levels and capitalization ratios, as you mentioned, on your preferred markets, they're, you know, quite robust, especially when compared to competitors, and a lot of that liquidity, I understand you will use it to continue growing the business. However, you know, based on your remarks, the guidance for this year, and the, you know, qualitative guidance you sort of gave for next year, it looks like, you know, you're gonna have very strong growth in front of us, ROEs in the 20s or above. Looks like a pretty promising outlook. When I look at the stock, stock's trading at, you know, 1.1x, 1.2 x price to book.
Just wondering how, you know, if buybacks have become a more frequent part of the conversation internally, and if so, how do you balance, you know, the use of liquidity to go into buybacks, which at this level seems a pretty attractive proposition, with the fact that, you know, you also wanna grow organically and take advantage of what you said, you know, this location and market is versus weak competitors? How do you guys balance those two and what you expect on buyback front?
Yeah, well, we have a very clear, the first use of get capital and liquidity, the growth, the funding of the growth of the portfolio. As you know, we have a buyback program that we have been using. We have some windows that limit the use of it, but we have been using it, but it's not something that we're going to be actively and strongly using. We are gonna focus on the growth of the company.
Great. Thank you, Mario, and congrats again, guys, on the results.
Thank you, Luiz.
Thank you. Next question comes on the line of Yuri Fernandes with JP Morgan. Please go ahead.
Hey, guys, congrats on the results. Just on the guidance, on the give guidance remaining unchanged, just understanding moving parts, right? Basically, you have more loan growth, right? You revised the loan growth guidance. On fees, I think on your remarks, you mentioned that you now expect 30%, and this is offsetting the new 13% for G&A. Just understanding if I'm heard correctly, basically, loans on one side and fees versus G&A, just checking this information. I have a second question regarding your client growth. They are growing. For sure, they are not growing maybe as quickly as employees, but they should grow.
I would like to understand, like, the impacts of this client growth, because maybe one investor could argue that adding new customers, you are adding more risk that can be, you know, potentially negative for your cost of risk. Also, other could argue that in addition to growth, it also can mean higher spreads, right? Because it seems like your rates depend on the cycles, and if you have new customers, usually the rates are higher. How do you see, like, this location here, right? For sure, you are willing to grow, you are seeing opportunity here, but how do you balance this? You know, like potential higher rates, if it makes sense, with potential higher cost of risk. Thank you.
Thank you, Yuri. This is Patricio, and let me jump into the customer growth. Again, as I said before, the market, both, in both countries, is still very large. We depend on our sales reps to go and visit the customers and bring them or offering the our products in order to grow the portfolio, right? As I said before, this semester, we hired such personnel, they are already not only hired, but trained, and we expect them to become productive in the coming months. As you saw, the productivity is very low, not it decreased in the semester, and we expect to pick productivity back up in the coming months. This should drive customer growth.
As you said, new customers tend to be riskier because they are new to the methodology. However, there are different factors. First, the asset quality today is very strong, so we are ready to grow faster. Secondly, the pricing for new customers is different than for renewal customers. The risk associated to new customers is already priced in in our products. It shouldn't be a concern for investors. Actually, it's a very positive news that we expect to grow and grow fast the customer base. What happens with customer base, again, with the new customers, is that new customers bring smaller tickets. No, they start with smaller tickets, and this is why the growth in portfolio, you will see it by year-end.
Income is not necessarily beneficial, or the income will be seen for 2024, because the portfolio will be grown in the, in, in the second leg of this 2023. Again, excited about the opportunities. We are very excited about the things that we already have, and we will tap into the opportunity to grow both in customers as well as portfolio.
No, perfect. Makes a lot of sense. Regarding the guidance reconciliation, just checking, it's 30%, right? The review you are expecting for this year.
Yeah.
Okay. Thank you, guys, and congrats. Yeah, it looks like 2024, as Patricio said, you have a potential pay window on the long road, right? The cool book should be higher. Congrats on that. Thank you.
Thank you, Yuri.
Thank you. The next question comes from the line of Jitender Singh with HSBC. Please go ahead.
Hi, can you hear me?
Yes.
Okay. Hi, this is Jitender from HSBC. Congrats on the results. I have two questions, maybe one on your rate sensitivity. Rates are expected to come down in coming quarters, so could you provide some sensitivity to rates on your bottom line?
Sorry, it's not that clear, the line. Can you try to speak lower and like more precise, because the line is very bad.
Sorry, can you please speak down? Is it getting down?
Hello?
Yes, we can hear you.
Okay. My question was on your rate sensitivity. Rates are expected to come down in coming quarters. Could you provide some sensitivity to your rate sensitivity to rates on your bottom line or on financial expenses? My second question is on capital. You have managed to increase the capital levels for the group in the last few years, which is commendable. My question is, what is your target levels of capital for the group, where you want to be in coming years? Thank you.
Very good. Thank you. Thank you for, for that. Interest rate sensitivity in a very simple number, is for every 100 basis points at the current level of liabilities at floating rate, represents around MXN 350 million of interest. Obviously, you will need to multiply that by 70%, that should be around MXN 250 million at the bottom line level. Already, that's at the current level of liability. Regarding capital, we have our plans to keep the minimum levels of capital at each subsidiary and at our holding. Again, the minimum level at the bank is 25% in cap. We are around 35%.
For Peru, our solvency level, we will have it around above 80%, and the capital level is at Credito, it's above 50%. Our objective is to maintain all of those levels and keep a very strong capitalization going forward.
Thank you.
Thank you. As a final reminder, ladies and gentlemen, press star one at this time for any question. With no question in queue, the question- and- answer session conclude. I will now hand the call over to management of the company for final remarks.
Thank you. Well, again, thank you for your interest in this call and the news that we have for you. Just to summarize what we have been talking about, I guess we all see great opportunities for Gentera, not only for the second half of the year, but also for next year. We are strong, and we are growing faster this second half, even faster than how we grew in the first half. We are excited for the opportunities that we are looking not only in the market and this increase on market share that we're willing to have, but also with the progress that we are having in our modernization and digitalization projects that will give us a better position for the future. We are aware that we are facing challenges.
We know that we need to watch closely some of them, to manage our portfolio under a complex context, especially in Peru. I think that, all in all, we have a very strong position, and we are very excited for what we can expect, for the following months and even next year. Thank you for your attention. Thank you for your interest, and we'll talk in the next quarter, hopefully.
Thank you for participating in today's conference call. Now you may disconnect.