BSMX Banco Santander Mexico SA Institucion de Banca Multiple Grupo

MEXICO CITY, Oct. 29, 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- and nine-month periods ending September 30, 2015.

Santander Mexico reported net income for the quarter of Ps.3,464 million, representing YoY and QoQ increases of 6.8% and 7.0%, respectively.

Marcos Martinez, Grupo Financiero Santander Mexico's Executive President and CEO, commented,  "Santander Mexico reported the fourth consecutive quarter of accelerated year-on-year net interest income growth – up 13.5% over the last twelve months and 3.3% sequentially.  Net interest margin increased to 4.91%, from 4.84% last quarter reflecting strong growth in higher margin consumer loans."

"Actually, our total book expanded by 19% year-on-year and 6% sequentially - well above system rates with all segments contributing to this solid performance. Our renewed focus on payroll and personal loans continued to drive strong growth in these two segments, which combined were up 33% year-on-year. Mortgage loans were up 14%, again above market growth, as we continue to leverage our position as Mexico's leading banking mortgage originator. Commercial loans were also very strong - up 21% year-on-year, with double digit growth in all segments. We continued to strengthen our leadership position in the attractive SMEs and middle market segments with loans increasing each by 23% year-on-year, beating system rates."

"This significant loan growth was achieved while maintaining a strong focus on risk management with the NPLs ratio declining by 28 basis points sequentially to 3.49%. All segments contributed to this performance posting improvements of 42 bps in commercial NPLs and 17 basis points in SMEs, while consumer loans including credit cards declined 11 basis points."

"Furthermore, strong core earnings combined with the implementation of tight cost controls allowed us to improve the efficiency ratio by 60 basis points sequentially to 42.9%."

Mr. Martinez concluded, "Over the past couple of years we have been implementing a series of strategic initiatives across the organization to further consolidate our leadership position in the Mexican financial sector while maintaining our prudent risk management and focus on efficiency and profitability. Looking ahead, this entails a three-year plan aimed at enhancing our technology and infrastructure, talent, quality and processes, as well as branding. In line with the Group's renewed strategy, these measures constitute a transformation of our operating model with the objectives of further strengthening our position in the retail banking segment while consolidating our leadership position in our key products and markets."

3Q15 EARNINGS CALL DIAL-IN INFORMATION

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, 2015, Santander Mexico had total assets of Ps.1,183 billion under Mexican Banking GAAP and more than 12 million customers. Headquartered in Mexico City, the Company operates 1,078 branches and 276 offices nationwide and has a total of 17,068 employees.

We, the undersigned under oath to tell the truth declare that, in the area of our corresponding functions, we prepared the information on Grupo Financiero Santander Mexico contained in this quarterly report, which to the best of our knowledge reasonably reflects its situation.

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.

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SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.