MEXICO CITY--The Mexican unit of Spanish banking giant Banco
Santander (SN, SAN.MC) reported Thursday it made a net profit of
4.22 billion pesos ($328 million) in the third quarter, up 2.2%
from the like period of 2011, limited by a one-time effect related
to credit reserves.
Grupo Financiero Santander Mexico SAB (BSMX, SANMEX.MX), said in
a press release that excluding the extraordinary item--the freeing
of credit reserves to comply with regulator directives--net profit
would have risen 25% from the year-earlier quarter. Compared with
the second quarter, the bank's net profit slid 20%, although the
second quarter was padded with income from the sale of branches.
Excluding the impact of that sale, Santander Mexico's bottom line
improved 3.5% from the second quarter.
The third-quarter report marks the first financial report that
the bank has issued since its parent company raised around 2.77
billion euros ($3.57 billion) in September via the dual offer of
about 25% of the Mexican unit on the Big Board and the Mexican
Stock Exchange.
Santander Mexico Chief Executive Marcos Martinez said in a
statement to the Mexican Stock Exchange the bank expanded its
financing margin by 15% on the year in the quarter, while
increasing its net commissions by 14%.
The bank also grew priority business lines, with 78% growth in
loans to small businesses in the quarter and a 29% increase in its
credit-card loan balance.
Write to Amy Guthrie at amy.guthrie@dowjones.com
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