By Amy Guthrie
Mexico's fourth-biggest bank lender, Grupo Financiero Santander
Mexico SAB, projected Friday that its credit portfolio will expand
roughly 15% this year, with an outsized rise in loans to small
businesses.
Santander Mexico Chief Executive Marcos Martinez told reporters
during a conference call that such growth would likely top the
broader expansion of bank credit in Mexico. The bank supplies
around 10% of Spanish parent Banco Santander SA's annual
profit.
"We see renewed excitement for Mexico as a great investment
destination, " Mr. Martinez said.
Santander Mexico reported a 12.6% expansion in credit last year,
aided by efforts to lend to small businesses and growth in home
loans following the acquisition of ING's Mexican mortgage
business.
Analysts were underwhelmed by Santander Mexico's fourth-quarter
recurring net income of 3.1 billion pesos ($232 million), which
represented a 27% decline year-over-year. The bank reported
quarterly results after the market close Thursday.
Deutsche Bank analyst Mario Pierry called the results
"disappointing" and said the report is likely to lead to negative
earnings revisions.
Write to Amy Guthrie at amy.guthrie@wsj.com
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