MEXICO CITY, Nov. 4, 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 Mexico, today announced
financial results for the three-month and nine-month periods ending
September 30, 2014.
Reported net income for the quarter was Ps.3,244 million,
representing declines of 44.8% YoY and 12.0% QoQ. Comparable 3Q13
results exclude an extraordinary net non-cash benefit of Ps.2,803
million before taxes related to a mandatory regulatory change in
employee profit sharing (EPS) future payments. Excluding this item,
comparable net income in 3Q14 decreased 17.2% YoY.
Marcos Martinez, Grupo
Financiero Santander Mexico's Executive President and CEO,
commented, "Santander Mexico continued to lead loan
growth this quarter, up 16.5% YoY. This was the second consecutive
quarter doubling Mexican financial system growth. Among our
core products, SME loans remained strong achieving a 26% YoY
increase. We have a leading position in this high-potential segment
which represents 72% of employment and 52% of GDP in Mexico. To further strengthen our position as
the perfect partner for SMEs, last August we launched a program to
provide full comprehensive attention to SMEs in coordination with
the development banks with the objective of doubling this portfolio
in three years."
"Furthermore, mortgage loans were the strongest performers,
up 34% YoY, significantly exceeding market growth. Organic growth
in this segment was also a healthy 16% YoY, still above market.
Consumer loans, in turn, rose 8% YoY, in line with market rates and
still reflecting soft consumer activity."
"We continue to launch innovative products in our markets.
This quarter we introduced the first co-branded American Express
credit card and the first agribusiness credit card in Mexico. In addition, in line with our
commitment with SMEs we established a Ps.1.0 billion fund to
provide equity related instruments."
"Cost of risk remained stable while NPLs increased slightly
this quarter. We remain committed to maintaining our prudent risk
management. In addition, net interest income increased for the
second consequtive quarter – up 3%. Lower than anticipated level of
activity in both higher-margin consumer loans and capital markets
transactions affected profitability. Effective expense management
however, offset ongoing investment in strategic businesses and
branch expansion program."
Mr. Martinez concluded, "Looking to the future, we see signs
of a slight economic recovery confirming a reversal in the negative
trend, supported by Mexico's solid
macro fundamentals. Although consumer is still lagging behind, we
are very optimistic about the future, and expect consumer spending
to slowly recover as private and public investments continue to
materialize. Our sound and customer oriented business strategy
positions us well to leverage a full recovery in economic
activity."
|
|
|
|
|
|
|
Grupo Financiero
Santander Mexico
|
|
|
|
|
|
Highlights
|
|
|
|
|
|
|
|
3Q14
|
2Q14
|
|
3Q13
|
|
%
YoY
|
Income Statement
Data
|
|
|
|
|
|
|
Net interest
income
|
9,524
|
9,262
|
|
9,111
|
|
4.5
|
Fee and commission,
net
|
3,339
|
3,291
|
|
3,301
|
|
1.2
|
Core
revenues
|
12,863
|
12,553
|
|
12,412
|
|
3.6
|
Provisions for loan
losses
|
3,814
|
3,672
|
|
3,102
|
|
23.0
|
Administrative and
promotional expenses
|
5,938
|
5,921
|
|
2,737
|
|
117.0
|
Net income
|
3,244
|
3,687
|
|
5,882
|
|
(44.8)
|
Net income per
share1
|
1.50
|
1.03
|
|
2.13
|
|
(29.6)
|
Balance Sheet
Data
|
|
|
|
|
|
|
Total
loans
|
441,475
|
440,675
|
|
378,795
|
|
16.5
|
Deposits
|
438,143
|
425,108
|
|
389,524
|
|
12.5
|
Shareholders´s
equity
|
105,104
|
101,912
|
|
100,494
|
|
4.6
|
|
|
|
|
|
|
|
Key
Ratios
|
|
|
|
|
|
bps
|
Net interest
margin
|
4.90%
|
4.96%
|
|
5.18%
|
|
(27.6)
|
Net loans to deposits
ratio
|
97.0%
|
99.8%
|
|
93.2%
|
|
377.0
|
ROAE2
|
13.6%
|
14.1%
|
|
19.8%
|
|
(622.2)
|
ROAA
|
1.6%
|
1.6%
|
|
2.5%
|
|
(97.5)
|
Efficiency
ratio
|
43.0%
|
42.9%
|
|
33.0%
|
|
1,003.1
|
Capital
ratio
|
16.8%
|
16.1%
|
|
15.7%
|
|
109.5
|
NPLs ratio
|
3.71%
|
3.33%
|
|
2.84%
|
|
86.6
|
Cost of
Risk
|
3.5%
|
3.4%
|
|
3.4%
|
|
11.0
|
Coverage
ratio
|
101.6%
|
111.8%
|
|
146.6%
|
|
(4,500.0)
|
Operating
Data
|
|
|
|
|
|
%
|
Branches and
offices3
|
1,299
|
1,293
|
|
1,229
|
|
5.7
|
ATMs
|
5,395
|
5,315
|
|
5,209
|
|
3.6
|
Customers
|
11,451,170
|
11,159,430
|
|
10,595,380
|
|
8.1
|
Employees
|
15,404
|
14,375
|
|
13,883
|
|
11.0
|
|
|
|
|
|
|
|
1) Treasury Shares
and discontinued operations are not included
|
|
|
|
|
2) ROAE as
reported
|
3) As of 3Q14
includes: 1,042 branches + 120 cash desks + 3 select offices + 12
SME offices + 50 select units + 48 select boxes + 24 brokerage
house branches
|
To obtain the full text of this earnings report and the
3Q14 earnings presentation, please click on the following
link:
http://www.santander.com.mx/ir/english/financial/quarterly.html
3Q14 EARNINGS CALL
DIAL-IN INFORMATION
|
Date:
|
Tuesday, November 4,
2014
|
Time:
|
09:00 AM (MCT); 10:00
AM (US ET)
|
|
|
Dial-in
Numbers:
|
1-888-254-2824 US
& Canada; 1-913-312-1450 International & Mexico
|
|
|
Access
Code:
|
8659626
|
|
|
Webcast:
|
https://viavid.webcasts.com/starthere.jsp?ei=1045618
|
|
|
Replay:
|
Starting on Tuesday,
November 4, 2014 at 1:00 pm US ET (12:00 pm MCT), and ending on
Tuesday, November 11, 2014 at 11:59 pm US ET (10:59 pm
MCT)
|
|
|
|
Dial-in number:
1-877-870-5176 US & Canada; 1-858-384-5517 International &
Mexico
|
|
|
|
Access Code:
8659626
|
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
September 30, 2014, Santander Mexico
had total assets of Ps.930.4 billion under Mexican Banking GAAP and
more than 11 million customers. Headquartered in Mexico City, the Company operates 1,042
branches and 257 offices nationwide and has a total of 15,404
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 (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.