- Loan growth driven by YoY increases of 25.5% in SMEs,
14.4% in middle-market, 17.5% in mortgages, 14.7% in consumer loans
and 5.1% in credit cards
- Ongoing prudent risk management reflected in a NPL ratio
of 3.75% (2.33% excluding homebuilders and Santander Vivienda
portfolio) and a cost of risk of 3.3%
- Efficiency ratio of 43.0% achieved through continued
focus on operating efficiency while investing in strategic
businesses and new branches
MEXICO CITY, Feb. 3, 2015 /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 twelve-month periods
ending December 31, 2014.
Reported net income for the quarter was Ps.3,824 million,
representing a decline of 37.7% YoY and an increase of 17.9% QoQ.
Comparable 4Q13 results exclude: 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 non-cash benefit of Ps.265 million related to
a regulatory change in employee profit sharing future payments, iv)
a cash expense of Ps.66 million to comply with the new
employee profit sharing legal criteria. Excluding these items,
comparable net income in 4Q14 increased 27.7% YoY.
Grupo Financiero
Santander Mexico
|
|
Highlights
|
|
|
|
|
|
4Q14
|
3Q14
|
4Q13
|
% YoY
|
Income Statement
Data
|
|
|
|
|
Net interest
income
|
9,799
|
9,524
|
9,384
|
4.4
|
Fee and commission,
net
|
3,364
|
3,339
|
3,310
|
1.6
|
Core
revenues
|
13,163
|
12,863
|
12,694
|
3.7
|
Provisions for loan
losses
|
3,334
|
3,814
|
3,598
|
(7.3)
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Administrative and
promotional expenses
|
6,059
|
5,938
|
5,730
|
5.7
|
Net income
|
3,824
|
3,244
|
6,134
|
(37.7)
|
Net income per
share1
|
2.07
|
1.50
|
2.80
|
(26.1)
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Balance Sheet
Data
|
|
|
|
|
Total
loans
|
465,541
|
441,475
|
394,932
|
17.9
|
Deposits
|
459,624
|
438,143
|
404,668
|
13.6
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Shareholders'
equity
|
105,384
|
105,104
|
94,701
|
11.3
|
|
|
|
|
|
Key
Ratios
|
|
|
|
bps
|
Net interest
margin
|
4.86%
|
4.90%
|
5.25%
|
(38.8)
|
Net loans to deposits
ratio
|
97.6%
|
97.0%
|
93.6%
|
401.4
|
ROAE2
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14.0%
|
13.6%
|
21.7%
|
(767.8)
|
ROAA
|
1.6%
|
1.5%
|
2.7%
|
(106.3)
|
Efficiency
ratio
|
43.0%
|
43.0%
|
35.5%
|
746.4
|
Capital
ratio
|
16.2%
|
16.8%
|
15.9%
|
25.8
|
NPLs ratio
|
3.75%
|
3.71%
|
3.56%
|
19.4
|
Cost of
Risk
|
3.3%
|
3.5%
|
3.4%
|
(12.6)
|
Coverage
ratio
|
97.1%
|
101.6%
|
115.5%
|
(1,840.4)
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Operating
Data
|
|
|
|
%
|
Branches and
offices3
|
1,346
|
1,299
|
1,258
|
7.0
|
ATMs
|
5,528
|
5,395
|
5,264
|
5.0
|
Customers
|
11,724,151
|
11,451,170
|
10,728,823
|
9.3
|
Employees
|
16,428
|
15,404
|
14,260
|
15.2
|
|
|
|
|
|
1) Calculated by
using weighted shares.Treasury Shares and discontinued operations
are not included.
|
|
2) ROAE as
reported
|
|
3) As of 4Q14
includes: 1,081 branches + 18 SME offices + 6 SME branches + 119
cash desks + 3 Select offices + 44 Select units + 51 Select boxes +
24 brokerage house branches
|
|
Marcos Martinez, Grupo
Financiero Santander Mexico's Executive President and CEO,
commented, "We reported a strong business
performance this quarter, supported on our strategy to maximize
growth opportunities offering innovative products, while
maintaining a strong focus on risk management and cost controls. In
fact, comparable net income rose 28% YoY and 18% on a sequential
basis, the highest in the last five quarters."
"We expanded our loan book by 17.9% year-on-year, doubling
financial system growth for the third consecutive quarter. This was
accomplished despite the slowly recovering economy. Most
importantly, we achieved loan growth across all segments. SMEs
loans expanded 25.5% YoY and mortgages were up 17.5%, both
significantly above market rates. Consumer loans rose 9.1% YoY,
still affected by continued soft consumer demand, particularly in
the credit card segment, but well-above market rates. Actually,
excluding credit cards, we achieved a 14.7% YoY increase in
consumer loans. Middle-market loans growth was also quite strong,
up 14.4% YoY."
"This was also the third consecutive quarter of 3% sequential
growth in net interest income, and while NPLs increased slightly
this quarter, cost of risk fell 17 bps. In addition, this year we
established a controlled and solid cost base that will allow us to
fully leverage the benefit of our strategic initiatives. Expenses
remained stable for the fifth consecutive quarter even as we
continued to invest in strategic businesses and new
branches."
"This quarter we also reached an agreement to acquire a
consumer loan portfolio of approximately Ps.4.1 billion from
Scotiabank Inverlat S.A. This transaction, which is anticipated to
close during 1Q15, is expected to further expand our market share
in the personal loans segment by approximately 300 bps while
maintaining our credit quality standards and add more than 47,000
new clients."
Mr. Martinez concluded, "Looking ahead, we continued to see
evidence this quarter of a slowly recovering economy confirming the
reversal in the trend we started to see in the third quarter of
2014. We are well positioned to capture the benefits of a full
economic recovery, leveraging our wide range of atractive and
innovative financial products."
To obtain the full text of this earnings report and the
4Q14 earnings presentation, please click on the following
link:
http://www.santander.com.mx/ir/english/financial/quarterly.html
4Q14 EARNINGS CALL
DIAL-IN INFORMATION
|
Date:
|
Tuesday, February 3,
2015
|
Time:
|
09:00 AM (MCT); 10:00
AM (US ET)
|
Dial-in
Numbers:
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1-888-264-8943 US
& Canada; 1-913-312-1385 International & Mexico
|
Access
Code:
|
1967330
|
Webcast:
|
https://viavid.webcasts.com/starthere.jsp?ei=1045618
|
Replay:
|
Starting on Tuesday,
February 3, 2015 at 1:00 pm US ET (12:00 pm MCT), and ending on
Tuesday, February 10, 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:
1967330
|
INVESTOR RELATIONS CONTACT
Hector Chavez Lopez – Managing Director -
IRO
+52-(55)-5269-1925
hchavez@santander.com.mx
Gerardo Freire Alvarado –
Executive Director of Investor Relations
+52-(55)-5269-1827 / +52-(55)-5269-1828
gfreire@santander.com.mx
Investor Relations
Team
investor@santander.com.mx
www.santander.com.mx
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, 2014, Santander Mexico
had total assets of Ps.937.4 billion under Mexican Banking GAAP and
more than 11 million customers. Headquartered in Mexico City, the Company operates 1,081
branches and 265 offices nationwide and has a total of 16,428
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/grupo-financiero-santander-mexico-reports-fourth-quarter-2014-loan-portfolio-up-179-yoy-and-net-income-of-ps3824-million-300029870.html
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.