Grupo Financiero Santander Mexico Reports Third Quarter 2012 Net
Income of Ps.4,215 Million
MEXICO CITY, Oct 25, 2012 /PRNewswire/ -- Grupo Financiero
Santander Mexico, S.A.B. de C.V., (NYSE: BSMX; BMV: SANMEX),
("Santander Mexico"), one of the leading financial groups in the
Mexican financial system, today announced financial results for the
three- and nine-month periods ending September 30, 2012.
During 3Q12, Santander Mexico reported net income of Ps.4,215
million, representing a 2.2% year-on-year ("YoY") increase and a
20.2% sequential decrease. These comparisons however are affected
by extraordinary gains in 3Q11 for the reversal of provisions to
comply with CNBV (Comision Nacional Bancaria y de Valores)
regulations and in 2Q12 for the gain on the sale and leaseback of
branches. Excluding these one time events, normalized net income
increased 24.8% YoY and 3.5% sequentially. Consolidated net income
for 9M12 was Ps.14,513 million, an increase of 32.6%, or Ps.3,572
million higher than the corresponding figure in 9M11. Excluding the
aforementioned extraordinary gains in 3Q11 and 2Q12, net income for
9M12 increased 30.5% or Ps.3,107 million.
Marcos Martinez, Executive
Chairman and CEO, commented, "We are pleased with our strong third
quarter results, which reinforce the merits of our strategic focus
on commercial banking, low-risk profitable growth and operational
efficiency. We delivered year-on-year increases of 14.9% and 14.4%
in net interest income and net commissions and fees,
respectively. Furthermore, we executed well in our key business
segments, as demonstrated by robust year-on-year growth of 28.6%,
in both consumer loans and credit cards, as well as 78.4% increase
in loans to small and medium enterprises ("SMEs"). Our focused
growth strategy together with our strong emphasis on prudent risk
management and an efficiency-oriented culture positions Santander
Mexico as one of the most profitable franchises in Mexico."
Mr. Martinez continued, "This quarter we achieved a significant
milestone in Santander Mexico's history: our successful
international public offering, which values the bank at
16.5 billion dollars. This
transaction enhances the Company's market position and brand
recognition, while strengthening organizational transparency and
market discipline. We begin a new chapter as a publicly traded
company on strong footing and are well positioned to capitalize on
the attractive fundamentals of Mexico's banking industry."
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Grupo
Financiero Santander Mexico
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Highlights (Million Pesos)
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3Q12
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2Q12
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3Q11
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YoY
%
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Income
Statement Data
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Net
interest income
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8,582
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8,394
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7,471
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14.9%
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Fee and
comission, net
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3,065
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2,836
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2,680
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14.4%
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Core
revenues
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11,647
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11,230
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10,151
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14.7%
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Provisions
for loan losses
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2,534
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1,994
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1,080
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134.6%
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Administrative and promotional expenses
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5,179
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4,559
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4,630
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11.9%
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Net
income
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4,215
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5,285
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4,123
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2.2%
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Net income
per share*
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2.1
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1.5
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1.5
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39.0%
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Balance
Sheet Data
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Total
loans
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343,383
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338,905
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310,129
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10.7%
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Deposits
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336,289
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330,875
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307,876
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9.2%
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Shareholder´s equity
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94,794
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95,545
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90,146
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5.2%
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Key
Ratios
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pbs
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Net
interest margin
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4.98%
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4.87%
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5.15%
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-17.0
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Net loans
to deposits ratio
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98.7%
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99.1%
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97.2%
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154.2
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ROAE
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21.1%
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22.4%
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16.9%
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421.0
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ROAA
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2.6%
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2.6%
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2.0%
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60.8
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Efficiency
ratio
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36.9%
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35.0%
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42.3%
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-541.8
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Capital
ratio
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14.45%
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14.63%
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14.24%
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21.6
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NPL's
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1.6%
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1.5%
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2.2%
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-55.3
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Coverage
ratio
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205.4%
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224.2%
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162.5%
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4,292.5
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Operating Data
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%
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Branches**
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1,123
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1,125
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1,099
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2.2%
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ATMs
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4,840
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4,779
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4,641
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4.3%
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Customers
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9,764,741
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9,583,468
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9,184,726
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6.3%
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Employees
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12,766
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12,461
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11,999
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6.4%
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*Treasury
Shares and discontinued operations are not included
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**
Includes Brokerage House Branches
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To obtain the full text of this earnings report and the 3Q12
earnings presentation, please click on the following link:
http://www.santander.com.mx/ir/inf_financiera/inf_trimestral.html
3Q EARNINGS CALL DIAL-IN INFORMATION
Date – Friday, October 26,
2012
Time – 8:00 AM (MCT); 9:00 AM (US ET)
Dial-in Numbers – 1-480-629-9664 Mexico and International; 1-877-941-1427 US
and Canada
Access Code – 4570856
Webcast – https://viavid.webcasts.com/starthere.jsp?ei=1009721
Replay – Starting: Friday, October 26,
2012 at 11:00 AM (MCT);
12:00 PM (US ET). Ending:
Friday, November 2, 2012 at
11:00 PM (MCT); 12:00 AM (US ET).
About Grupo Financiero Santander Mexico, S.A.B. de C.V.
(NYSE: BSMX BMV: SANMEX)
Grupo Financiero Santander Mexico,
S.A.B. de C.V., one of Mexico's
leading financial services holding companies, provides a wide range
of financial and related services, including retail and commercial
banking, securities brokerage, financial advisory, and other
related investment activities. Santander Mexico offers a financial
services platform focused on mid- to high-income individuals and
small- to medium-sized enterprises, while also providing integrated
financial services to larger multinational companies in
Mexico. As of September 30, 2012, Santander Mexico had total
assets of Ps.771.4 million under Mexican Banking GAAP and more than
9.7 million customers. Headquartered in Mexico City, Santander Mexico operates 1,123
branches located throughout Mexico
and has a total of 12,766 employees.
LEGAL DISCLAIMER
Grupo Financiero Santander Mexico cautions that this report may
contain forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements could be found in various places
throughout this report and include, without limitation, statements
regarding our intent, belief, targets or current expectations in
connection with: asset growth and sources of funding; growth of our
fee-based business; expansion of our distribution network; our
focus on strategic businesses; our compound annual growth rate; our
risk, efficiency and profitability targets; financing plans;
competition; impact of regulation; exposure to market risks
including interest rate risk, foreign exchange risk and equity
price risk; exposure to credit risks including credit default risk
and settlement risk; projected capital expenditures; capitalization
requirements and level of reserves; liquidity; trends affecting the
economy generally; and trends affecting our financial condition and
our results of operations. While these forward-looking statements
represent our judgment and future expectations concerning the
development of our business, a number of risks, uncertainties and
other important factors could cause actual developments and results
to differ materially from our expectations. These factors include,
but are not limited to: changes in capital markets in general that
may affect policies or attitudes towards lending to Mexico or Mexican companies; changes in
economic conditions, in Mexico in
particular, in the United States
or globally; the monetary, foreign exchange and interest rate
policies of the Mexican Central Bank (Banco de Mexico); inflation; deflation; unemployment;
unanticipated turbulence in interest rates; movements in foreign
exchange rates; movements in equity prices or other rates or
prices; changes in Mexican and foreign policies, legislation and
regulations; changes in requirements to make contributions to, for
the receipt of support from programs organized by or requiring
deposits to be made or assessments observed or imposed by, the
Mexican government; changes in taxes; competition, changes in
competition and pricing environments; our inability to hedge
certain risks economically; economic conditions that affect
consumer spending and the ability of customers to comply with
obligations; the adequacy of allowances for loans and other losses;
increased default by borrowers; technological changes; changes in
consumer spending and saving habits; increased costs; unanticipated
increases in financing and other costs or the inability to obtain
additional debt or equity financing on attractive terms; changes
in, or failure to comply with, banking regulations; and certain
other factors indicated in the "Risk Factors" section of our
Registration Statement on Form F-1 (File No. 333-183409). The risk
factors and other key factors that we have indicated in our past
and future filings and reports, including those with the U.S.
Securities and Exchange Commission, could adversely affect our
business and financial performance.
Note: The information contained in this report is not audited.
Nevertheless, the consolidated accounts are prepared on the basis
of the accounting principles and regulations prescribed by the
Mexican National Banking and Securities Commission (Comisión
Nacional Bancaria y de Valores) for credit institutions, as amended
(Mexican Banking GAAP). All figures presented are in nominal terms.
Historical figures are not adjusted by inflation.
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.