MEXICO CITY, April 29, 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-month period ending March 31, 2014.
Reported net income for the quarter was Ps.3,259 million,
representing YoY and QoQ decreases of 30.9% and 46.9%,
respectively. Comparable net income in 1Q14 decreased 27.0% YoY and
increased 8.9% sequentially. Comparable 4Q13 results exclude 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 recognized advanced tax credits
and 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 4Q13. Additionally,
comparable 1Q13 results exclude a tax benefit of Ps.250 million
resulting from the sale of a previously written-off loan
portfolio.
Marcos Martínez, Executive President and CEO,
commented, "We started the year with strong loan
growth, up 16%, substantially above Mexican financial system growth
rates during the period, and reported a positive performance across
all core segments. Most importantly, this solid growth was achieved
in a continued challenging macro environment that negatively
affected the overall financial system. Furthermore, organic growth,
excluding the mortgage acquisitions, remained solid at 12% YoY,
also well-above market growth."
"Among our core products, SME loans grew YoY by 29% as we
continue to further strengthen our leadership position in this
attractive market with a differentiated value proposition through a
specialized network. Our strong focus on the mid- and high-income
mortgage market has allowed us to expand this portfolio by 32%,
underscoring our #2 position. Despite still challenging consumer
market conditions, we have started to see an incipient pick-up in
growth rates in the credit card segment - up 9% YoY this quarter.
Our focus on core products is further supported by continued growth
in Middle-Market, a segment that has achieved strong performance -
up 21% this quarter."
"Commissions and fees also showed a positive performance - up
6% YoY, even when compared against a strong year-ago quarter. Net
interest income increased 4% YoY, with net interest margin of
5.05%, reflecting business growth and lower cost of funding. Gross
operating income, however, remained stable affected by unusually
high trading gains in 1Q13. We also remained on track with our
expansion plan, opening 103 new branches to-date, for a total of
200 planned, which we expect will further drive deposit growth and
support our liquidity profile."
Mr. Martínez concluded, "Looking ahead, we expect economic
activity and GDP growth to pick up in the second half of the year,
driving incremental demand for the core financial services that we
offer."
Grupo Financiero
Santander México
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Highlights
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1Q14
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4Q13
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1Q13
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%
YoY
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Income Statement
Data
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Net interest
income
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8,993
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9,384
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8,636
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4.1
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Fee and commission,
net
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3,423
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3,310
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3,218
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6.4
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Core
revenues
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12,416
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12,694
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11,854
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4.7
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Provisions for loan
losses
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3,469
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3,598
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2,804
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23.7
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Administrative and
promotional expenses
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5,902
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5,730
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5,288
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11.6
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Net income
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3,259
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6,134
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4,717
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(30.9)
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Net income per
share1
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0.48
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2.80
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0.69
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(30.2)
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Balance Sheet
Data
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Total
loans
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409,349
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394,932
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352,267
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16.2
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Deposits
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401,081
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404,668
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364,120
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10.2
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Shareholders´s
equity
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98,106
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94,701
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102,519
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(4.3)
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Key
Ratios
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bps
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Net interest
margin
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5.05%
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5.25%
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5.21%
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(15.6)
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Net loans to deposits
ratio
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98.1%
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93.6%
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93.5%
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459.0
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ROAE2
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13.5%
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21.7%
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18.8%
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(531.3)
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ROAA
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1.5%
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2.7%
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2.3%
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(80.5)
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Efficiency
ratio
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44.3%
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35.5%
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39.8%
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451.4
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Capital
ratio
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15.7%
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15.9%
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15.6%
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6.0
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NPLs ratio
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3.40%
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3.56%
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1.83%
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157.4
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Coverage
ratio
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115.4%
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115.5%
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185.6%
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(7,013.0)
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Operating
Data
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%
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Branches3
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1,279
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1,258
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1,193
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7.2
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ATMs
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5,295
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5,264
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5,020
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5.5
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Customers
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10,697,654
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10,728,823
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10,435,972
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2.5
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Employees
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14,384
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14,260
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13,498
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6.6
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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 1Q14
includes: 1,038 branches + 119 cash desks + 3 select offices + 50
select units + 45 select boxes + 24 brokerage house
branches
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To obtain the full text of this earnings report and the
1Q14 earnings presentation, please click on the following
link:
http://www.santander.com.mx/ir/english/financial/quarterly.html
1Q14 EARNINGS CALL DIAL-IN INFORMATION
Date:
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Wednesday, April 30,
2014
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Time:
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09:00 AM (MCT); 10:00
AM (US ET)
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Dial-in
Numbers:
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1-888-661-5144 US
& Canada; 1-913-312-1430 International & Mexico
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Access
Code:
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6269879
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Webcast:
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https://viavid.webcasts.com/starthere.jsp?ei=1033557
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Replay:
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Starting on
Wednesday, April 30, 2014 at 1:00 pm US ET, and ending on
Wednesday, May 7, 2014 at 11:59 pm 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:
6269879
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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
March 31, 2014, Santander Mexico had
total assets of Ps.867.2 billion under Mexican Banking GAAP and
more than 10 million customers. Headquartered in Mexico City, the Company operates 1,038
branches and 241 offices nationwide and has a total of 14,384
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 report20F. 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 for inflation.
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.