MEXICO CITY, Jan. 30, 2014 /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 twelve-month periods ending December 31, 2013.
Comparable net income in 4Q13 decreased 27.0% YoY to Ps.3,114
million. Comparable 4Q13 results eliminate the following items: i)
a Ps.1,927 million net gain after taxes resulting from the
divestiture of the asset management business, ii) a Ps.1,074
million benefit from advanced tax credits, iii) an extraordinary
net benefit of Ps.199 million before taxes related to the mandatory
regulatory change in employee profit sharing (EPS) future payments
occurred in 3Q13 and iv) branch expansion expenses before taxes of
Ps.171 million. Additionally, comparable 4Q12 results reflect
Ps.1,368 million before taxes adjusted downward which include: an
adjustment to be consistent with the accounting methodology adopted
in 2013 to normalize expenses throughout the year, certain
provisions, write-offs and administrative and promotional expenses.
Reported net income for the quarter was Ps.6,134 million,
representing YoY and QoQ increases of 85.3% and 4.3%,
respectively.
Marcos Martinez, Executive
President and CEO, commented, "We reported a strong performance
in loan and deposit growth this quarter, ahead of industry growth
rates. This good performance came about even as we continue to face
an environment of lower growth."
"We expanded our total loan portfolio by 13% YoY this
quarter, reflecting solid organic growth as well as the positive
contribution from the November 2013
acquisition of ING's mortgage business, which solidifies our number
two ranking in this attractive segment of the market. Among
our core products, SME loans and mortgages grew YoY by 26% and 28%,
respectively, well above the Mexican financial system growth rates
during the period. Credit Cards and Consumer loans rose 7% and 10%,
respectively, reflecting a conservative strategy to prioritize
asset quality. Furthermore, we increased our deposit base by 12%,
further supporting our liquidity profile."
"Net interest income for the quarter increased 6.5% YoY, with
net interest margin of 5.25%, reflecting core business growth and
lower cost of funding. At the same time, we remained on track with
our branch expansion plan opening a total of 37 new branches during
this quarter, for a total of 90 branches since the start of this
process while maintaining tight cost controls across the
organization. In summary, against a backdrop of a challenging
economic environment, we closed 2013 in a very solid position as
one of the most efficient and profitable franchises in the
country."
"Also, several important events during the quarter improved
our financial position. Among these, we divested our equity in the
asset management business and entered into strategic agreements to
continue to distribute these mutual funds to our clients. We also
completed the optimization of our capital structure which has
allowed us to reduce our cost of capital and increase return on
equity, all while maintaining industry-leading capitalization
levels, well above minimum regulatory capitalization requirements.
As part of this strategy, we paid a Ps.16.9 billion, or
U.S.$1.3 billion, cash dividend to
our shareholders during the quarter. At the same time, in
December 2013 we issued
U.S.$1.3 billion in subordinated
notes that comply with capital requirements under Basel III for
Tier 2 capital, the first of their kind in Latin America."
Mr. Martinez concluded, "Looking ahead, macro and financial
sector fundamentals in Mexico
remain strong, despite the sharper than anticipated economic
slowdown last year. We expect to see a recovery in public and
private investment in 2014, driven by public spending as well as
the infrastructure spending program. The recent approval of the
energy, labour, financial and fiscal reforms should enhance
economic growth in the following years, positively impacting
Mexico's financial
sector."
Grupo Financiero
Santander Mexico
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Highlights
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4Q13
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3Q13
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4Q12
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YoY
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Income Statement
Data
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Net interest
income
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9,384
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9,111
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8,812
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6.5%
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Fee and commission,
net
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3,310
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3,301
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3,227
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2.6%
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Core
revenues
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12,694
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12,412
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12,039
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5.4%
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Provisions for loan
losses
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3,598
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3,102
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2,948
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22.0%
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Administrative and
promotional expenses
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5,730
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2,737
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5,996
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-4.4%
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Net income
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6,134
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5,882
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3,310
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85.3%
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Net income per
share1
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2.80
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2.18
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2.61
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7.3%
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Balance Sheet
Data
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Total
loans
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394,932
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378,795
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350,683
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12.6%
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Deposits
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404,668
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389,524
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362,452
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11.6%
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Shareholders´s
equity
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94,701
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100,494
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97,827
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-3.2%
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Key
Ratios
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bps
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Net interest
margin
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5.25%
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5.18%
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5.03%
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22
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Net loans to deposits
ratio
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93.6%
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93.2%
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93.6%
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2.7
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ROAE2
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21.7%
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19.8%
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19.1%
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255.4
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ROAA
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2.7%
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2.5%
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2.4%
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26.3
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Efficiency
ratio
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35.5%
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33.0%
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39.5%
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(396.8)
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Capital
ratio
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15.9%
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15.7%
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14.8%
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113.0
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NPLs ratio
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3.56%
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2.84%
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1.74%
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181.8
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Coverage
ratio
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115.5%
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146.6%
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190.1%
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(7,453.8)
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Operating
Data
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%
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Branches3
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1,258
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1,229
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1,170
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7.5%
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ATMs
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5,264
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5,209
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4,946
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6.4%
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Customers
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10,512,051
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10,586,497
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9,965,356
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5.5%
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Employees
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14,169
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13,883
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13,385
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5.9%
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1) Treasury Shares
and discontinued operations are not included
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2) ROAE as
reported
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3) As of 4Q13
includes: 1,018 branches + 121 cash desks + 3 select offices + 50
select units + 42 select boxes + 24 brokerage house
branches
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To obtain the full text of this earnings report and the
4Q13 earnings presentation, please click on the following
link:
http://www.santander.com.mx/ir/english/financial/quarterly.html
4Q13 EARNINGS CALL DIAL-IN INFORMATION
Date:
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Friday, January 31,
2014
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Time:
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10 AM (MCT); 11 AM
(US ET)
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Dial-in
number:
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1-877-870-5176;
1-913-312-1507 International & Mexico
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Access
Code:
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3531096
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Webcast:
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https://viavid.webcasts.com/starthere.jsp?ei=1028405
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Replay:
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Starting Friday,
January 31, 2014 at 2 PM US ET, and ending on Friday, February 7,
2014 at 11:59pm US ET
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Dial-in number:
1-877-870-5176 US & Canada; 1-858-384-5517 International &
Mexico
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Access Code:
3531096
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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. (Santander
Mexico), 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 multichannel
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
December 31, 2013, Santander Mexico
had total assets of Ps.821.8 billion under Mexican GAAP and more
than 10.5 million customers. Headquartered in Mexico City, the Company operates 1,018
branches and 240 offices nationwide and has a total of 14,169
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 may 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 our annual report 20F. 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 (Comision
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 for inflation.
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.