Retail
Financial Leasing
An alternative is offered that allows the use of a unit with the possibility of acquiring it in the future, through a monthly payment plan that represents its purchase value. This model offers the advantage of deducting interest for income tax purposes and crediting 100% of the VAT corresponding to each payment.
Operating Leasing
The use of a unit is provided in exchange for a monthly payment, which can be deducted for income tax purposes according to the lease invoice. The VAT corresponding to the rentals is recoverable and, at the end of the contract, the user has the option of purchasing the unit or returning it.
Simple Loan
After making an initial payment equivalent to a certain percentage of the value of the asset, the purchase invoice is issued in the user’s name. The interest paid monthly can be deducted for income tax purposes and is not subject to VAT. Additionally, at the beginning of the financing, the total crediting of this tax is allowed.
Wholesale
TRATON Financial Services Mexico offers its distributors various financing solutions, both in local currency and in dollars, for the acquisition of International® trucks, used trucks, complementary equipment and spare parts. In addition, it offers options to support the working capital necessary for your operation.
Insurance
Transprotección
As an insurance agent specializing in the automotive transport industry, we offer a unique accident prevention program, which distinguishes us in the market by providing a comprehensive service. This proposal positions us among the few providers that offer a complete experience to our clients, establishing a key differential within the industry.
Highlights
| Managed Portfolio |
Authorized credit lines |
Shareholders’ Equity |
|---|
| 26,134 | 27,256 | 4,894 |
| Interest income |
ROE | Financed Vehicles |
|---|
| 2,234 | 19.47% | 2,846 |
| Operating income |
ROA | Clients |
|---|
| 1,184 | 4.12% | +1,570 |
Comparative Highlights
| Financial information |
2024 | 2023 | change in pesos |
change in (%) |
|---|
| Managed portfolio |
P$26,134 | P$14,328 | P$11,806 | 82.40% |
|---|---|---|---|---|
| interest income |
P$2,234 | P$1,764 | P$470 | 26.64% |
| Operating income |
p$1,184 | p$1,283 | -P$99 | -7.72% |
| Authorized credit lines |
P$27,256 | P$24,417 | P$2,839 | 11.63% |
| Shareholders’ Equity |
P$4,894 | P$4,025 | P$869 | 21.59% |
| ROE | 19.47% | 19.54% | -0.07 | -0.36% |
| ROA | 4.12% | 6.51% | -2.39% | -36.71% |
INCOME STATEMENT SUMMARY
Interest Income
Interest income increased from P$1,764 in 2023 to P$2,234 in 2024, an increase of 26.6% due to i) an increase in interest income on loan portfolio and financial leasing of P$443.8 million derived from the increase in portfolio placement. ii) A positive variation of P$11.3 million, explained by the fluctuation in the exchange rate whose net effect on the monetary position at the close of 2024 amounts to a profit of P$19 million against a profit of P$7.7 million for the previous year. iii) As of December 31, 2024, the Company obtained interest income from repurchase agreements and investments for P$22.6 million, while as of December 31, 2023, interest income for this concept amounted to P$20.1 million, originating an increase of P$2.4 million. iv) Increase in the amortization of commissions for granting loans for P$12.1 million.
Var. 26.6%
At the end of 2024, revenues are composed as follows: P$2,234 related to interest income (72.2%); P$282 in commissions and fees collected (9.1%); P$21 in brokerage income (0.7%); P$333 in net operating lease income (10.8%); and P$222 million in total other operating income (7.2%).
Revenues by Product
Var. 10.9%
Var. 15.5%
Var. 52.4%
Var. -2.7%
Var. 41.7%
Interest Expenses
In 2024, interest expense increased 41.3%, from P$908 in 2023 to P$1,283 in 2024, due to i) an increase in interest expense on bank loans and amortization of expenses on disposition of bank loans of (P$194) million. ii) A negative variation of (P$1.4) million, explained by the fluctuation in the exchange rate whose net effect on the monetary position at the end of 2024 amounts to a loss of (P$13.5) million versus a loss of (P$12.1) million in the same period of the previous year. iii) An increase in the interest expense on debt securities and amortization of debt issuance expenses of (P$179.2) million. iv) An increase in the amortization of origination costs of (P$0.8) million and finally v) a decrease in interest on lease liabilities of P$0.6 million derived from the payments made during 2024.
Var. 41.3%
Net interest income
At the end of 2024, the net interest income was 4.11%, an increase of 15% compared to the 3.58% recorded in 2023.
Var. 15.0%
Pre-tax income
In 2024, income before taxes was P$1,184 million, which represents a decrease of -7.7% compared to the P$1,283 million recorded in 2023. This variation is explained by the following factors:
I) Decrease of P$75.8 million in the adjusted financial margin, mainly due to an increase in the allowance for loan losses. It is worth noting that in 2023 there was a positive impact due to collection strategies and a high level of recoveries of commercial loans that had been defaulted in previous years and as a result of the COVID-19 pandemic.
II) P$57.4 million increase in commercial loan fees collected, driven by both growth in the floor plan loan portfolio and higher portfolio placement fees.
III) P$6 million increase in net interest income, mainly associated with operations related to foreign exchange fluctuations.
IV) Decrease of P$30.6 million in operating lease income, as a result of lower rental income, due to a lower placement of this product during the first months of 2024.
V) Positive variation of P$6.5 million, explained by a combination of the following effects: lower recovery of the bad debt portfolio in pure leases, decrease in income from purchase options in capital leases, increase in the gain on foreclosure and sale of repossessed assets, recognition of allowances for doubtful accounts, higher impairment of foreclosed properties and losses on sale of fixed assets and equipment for lease.
VI) Increase of P$62.6 million in operating expenses, mainly explained by higher payroll-related expenses, as well as growth in external consulting expenses and system improvement projects.
Var. -7.6%
Income taxes
In FY2024, income taxes were P$356 million, decreasing 1.25% versus P$320 in FY2023.
Var. -1.25%
Net income
In 2024, net income was P$868 million, a decrease of -9.9% compared to the P$964 million recorded in 2023. This variation mainly reflects the lower pre-tax result, associated with a lower adjusted financial margin and higher operating expenses.
Despite higher fee income and a positive intermediation effect, portfolio growth implied an increase in loan loss provisions, which affected operating income. In addition, income taxes increased 11.3%, contributing to a greater difference between income before taxes and net income for the year.
Var. -9.9%
BALANCE SHEET SUMMARY
ASSETS
Assets consist mainly of the value of its portfolio, the distribution of which is shown below:
Managed Portfolio
The portfolio is comprised of three key segments: Wholesale, Retail and Simple Leasing. During 2024, the portfolio under management recorded an increase of 121.9%, mainly attributed to: a) During 2024, the heavy vehicle sector in Mexico faced a relevant technological transition, driven by the entry into force of SEMARNAT’s NOM-044, which establishes that as of 2025, only vehicles with Euro 6 or EPA 24 technology may be invoiced. Faced with this transition and historic demand-with 67,704 units sold wholesale in 2024 (22.3% more than in 2023)-International Motors Mexico implemented a pre-buy scheme, a common practice in the face of regulatory changes, allowing distributors to acquire Euro 5 units before the end of 2024 for subsequent marketing.
As a result, TRATON Financial Services Mexico recorded a significant increase in units financed, mainly in the floor plan portfolio, which increased by P$8,740.7 million, driving the growth of the total portfolio under management. b) increase in the retail portfolio by P$2,824.9 million and c) increase of P$173.5 million at the end of 2024 compared to 2023, in the balance of equipment for operating leases, which is the result of a higher placement of this product during the year under review.
Var. 328.1%
Var. 31.1%
Var. 7.3%
Portfolio by Risk Level (IFRS9)
In 2022, in order to adopt international standards that optimize the management of the loan portfolio, new accounting criteria were implemented in the Mexican financial system, aligned with the Financial Reporting Standards and the IFRS9 regulation. Among the modifications, the classification of the portfolio into three risk stages (1, 2 and 3) and an expected loss model for each one was introduced, allowing a more accurate assessment of the impairment of financial instruments.
By 2024, the Stage 3 Portfolio was reduced from 2.5% in 2023 to 1.6%, representing a decrease of 36.0%.
This result was driven by I) restructurings and renewals of P$106.3 million, II) uncollected accrued interest of P$218.4 million, III) collections, foreclosures and NAFIN deposits of P$359.4 million, IV) interstage transfers of P$194.5 million, V) write-offs and write-downs of (P$84.1) million and VI) foreign exchange fluctuation of P$.30 million. VII) the increase in the placement of the wholesale portfolio, which occurred mainly during the last quarter of the year.
Var. 2.7%
Var. -51.5%
Var. -36.0%
Portfolio’s Geographic Distribution
By the end of 2024, our portfolio had a presence in all 32 Mexican states. The states with the highest concentration include Nuevo León, with 17.1%; Estado de México, with 15.4%; Coahuila, with 6.9%; Jalisco, with 6.2%; and Michoacán, with 6.0%.
LIABILITIES
Funding Sources
As in the case of assets, the main component of the company’s liabilities is the debt used to finance the portfolio. Its distribution is detailed below.
Var. 167.8%
Var. 32.7%
Var. -18.4%%
Var. 100.0%
Credit Ratings
The following are the credit ratings granted, which facilitate access to highly competitive rates and credit lines.
| S&P Global Rating |
Fitch Ratings |
HR Ratings |
VERUM |
|---|
| Long-term | mxAA+ | mxAAA | HR AAA | AAA/M |
|---|---|---|---|---|
| Short-term | mxA-1+ | mxF1+ | HR + 1 | 1+M |
Shareholders´ Equity
At the end of 2024, Shareholders’ Equity increased 21.6% from P$4,025 in 2023 to P$4,894 this period, due to the recognition of the earnings of the 2024 fiscal year.