Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Regional's First Quarter 2026 Earnings Conference Call. We are joined today by Manuel Rivero Zambrano, Chief Executive Officer of Regional; Enrique Navarro Ramirez, Chief Financial Officer; and Alejandro Gálvez, Head of Strategy and Planning and Investor Relations. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Manuel Rivero Zambrano. Thank you, and please go ahead.

Manuel Rivero Zambrano
CEO & Director

Thanks. Good morning, everyone. I hope you and your families are well. We're presenting our first quarter 2026 results, which reflect our continued focus on disciplined execution amid a more challenging environment. Mexico's economic environment has become more challenging, slower GDP growth and trade policy uncertainty are affecting business confidence in ways we are actively monitoring. Our commercial strategies continue to focus on expanding our presence in key regions while maintaining strict cost control and credit underwriting discipline.

We remain focused on diversifying our income streams particularly through nonfinancial revenue growth as well as increasing the share of fixed rate loans, which provide partial compensation for margin pressures. Net income for the quarter reached MXN 1,515 million, a 7% year-on-year decrease.

Our return on average equity contracted 224 basis