MEXICO CITY, Oct. 27, 2016 /PRNewswire/ --Grupo Financiero
Santander México, S.A.B. de C.V., (NYSE: BSMX; BMV:
SANMEX), ("Santander México"), one of the leading financial
groups in Mexico, today announced
financial results for the three-month and nine-month periods ending
September 30, 2016.
Santander México reported net income for 3Q16 of Ps.3,926
million, representing a YoY and QoQ increases of 13.3% and 5.9%,
respectively. For 9M16, net income amounted to Ps.11,173 million,
reflecting a 12.7% increase from 9M15.
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HIGHLIGHTS
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Income Statement
Data
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3Q16
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2Q16
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3Q15
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%
YoY
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%
QoQ
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9M16
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9M15
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%
YoY
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Net interest
income
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12,411
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11,817
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10,810
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14.8
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5.0
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35,928
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31,201
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15.2
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Fee and commission,
net
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3,739
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3,982
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3,686
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1.4
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(6.1)
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11,330
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10,995
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3.0
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Core
revenues
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16,150
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15,799
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14,496
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11.4
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2.2
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47,258
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42,196
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12.0
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Provisions for loan
losses
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4,889
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4,511
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4,594
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6.4
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8.4
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14,109
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12,820
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10.1
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Administrative and
promotional expenses
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7,048
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7,015
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6,426
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9.7
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0.5
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20,952
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19,206
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9.1
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Net income
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3,926
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3,708
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3,464
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13.3
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5.9
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11,173
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9,917
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12.7
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Net income per
share1
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1.65
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1.07
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1.46
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13.0
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54.2
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1.65
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1.46
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13.0
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Balance Sheet
Data
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3Q16
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2Q16
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3Q15
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%
YoY
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%
QoQ
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3Q16
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3Q15
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%
YoY
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Total
assets
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1,242,258
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1,264,045
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1,182,882
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5.0
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(1.7)
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1,242,258
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1,182,882
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5.0
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Total
loans
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598,829
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571,685
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526,037
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13.8
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4.7
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598,829
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526,037
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13.8
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Deposits
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542,191
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543,685
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492,713
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10.0
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(0.3)
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542,191
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492,713
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10.0
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Shareholders´
equity
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121,107
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117,506
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112,589
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7.6
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3.1
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121,107
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112,589
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7.6
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Key
Ratios
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3Q16
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2Q16
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3Q15
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bps YoY
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bps
QoQ
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9M16
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9M15
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bps
YoY
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Net interest
margin
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5.01%
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4.86%
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4.98%
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3.2
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15.4
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4.92%
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4.91%
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1.2
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Net loans to deposits
ratio
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106.7%
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101.6%
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102.8%
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390.8
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515.8
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106.7%
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102.8%
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390.8
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ROAE
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13.4%
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12.8%
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12.7%
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67.1
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54.6
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12.7%
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12.1%
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56.5
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ROAA
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1.3%
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1.2%
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1.3%
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(1.3)
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8.3
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1.2%
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1.2%
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(2.0)
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Efficiency
ratio
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41.3%
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42.8%
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41.7%
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(37.4)
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(141.7)
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42.2%
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42.9%
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(72.1)
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Capital
ratio
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16.0%
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15.1%
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15.4%
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58.0
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91.0
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16.0%
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15.4%
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58.0
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NPLs ratio
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2.82%
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2.96%
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3.49%
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(66.5)
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(13.9)
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2.82%
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3.49%
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(66.5)
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Cost of
Risk
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3.4%
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3.2%
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3.7%
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(29.5)
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18.7
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3.3%
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3.4%
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(16.6)
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Coverage
ratio
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119.1%
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114.8%
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105.8%
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1,333.5
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430.1
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119.1%
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105.8%
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1,333.5
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Operating
Data
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3Q16
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2Q16
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3Q15
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%
YoY
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%
QoQ
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3Q16
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3Q15
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%
YoY
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Branches and
Offices2
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1,387
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1,389
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1,374
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0.9
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(0.1)
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1,387
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1,374
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0.9
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ATMs
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6,620
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6,456
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5,875
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12.7
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2.5
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6,620
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5,875
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12.7
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Customers
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13,150,684
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12,934,392
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12,263,737
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7.2
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1.7
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13,150,684
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12,263,737
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7.2
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Employees
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16,828
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17,074
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17,068
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(1.4)
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(1.4)
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16,828
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17,068
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(1.4)
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1) Accumulated EPS,
net of treasury shares (compensation plan) and discontinued
operations. Calculated by using weighted shares.
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2) As of 3Q16
includes: 1,076 branches (including 120 branches with Select
service) + 18 SME offices + 7 SME branches + 130 cash desks
(including 1 cash desk with Select service) + 13 Select offices +
43 Select units + 58 Select boxes + 19 Select corner + 23 brokerage
house branches
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Héctor Grisi, Grupo Financiero Santander México's Executive
President and CEO, commented, "We reported strong
performance this quarter as we continue to drive profitable growth.
Importantly, this was achieved against the backdrop of a more
challenging global environment, demonstrating the resilience of our
business. Ongoing expansion in demand deposits and strong loan
growth underpinned results, and we are increasingly able to
leverage operating efficiencies."
"The strategic commercial initiatives launched earlier this
year to become a client centric bank through a strong focus on
innovation and operational transformation are starting to show
promising results. Santander Plus boasts more than 700,000
customers, demonstrating the strength of our value proposition
while reducing attrition. Most importantly, 50% of these are new
clients. Our Aeromexico co-branded card is proving very successful
with over 300,000 customers to date. Progress was also made in
implementing technological innovation, a key element of our
strategy. We are pleased to report that we reached more than 1.2
million digital customers this quarter and expect to almost double
this figure by 2019."
"Meanwhile, we continue to consolidate our position in
commercial loans, maintaining a disciplined philosophy in
terms of returns on risk weighted assets and applying a risk-based
pricing approach in SMEs and mid-market."
"Solid loan book expansion of 14% year-on-year together with
higher interest rates since December
2015 boosted Net Interest Income by 15% year-on-year and 5%
sequentially. Moreover, NIM improved 15 bps sequentially reaching
5.01% this quarter. We also reported year-on-year improvements in
the NPL ratio and cost of risk. Our increased focus on return on
risk weighted assets and efficiency, along with our commercial
initiatives have allowed us to gain traction in profitability
metrics, supporting year-on-year net income growth of 13.3%, RoAE
of 13.4% and the best efficiency ratio this
year."
"We remain committed to executing strategic initiatives that
will position Santander México as our customers' primary bank and
are confident in our ability to keep delivering sustainable
profitable growth in the best interests of all
stakeholders."
To obtain the full text of this earnings report and the 3Q16
earnings presentation, please click on the following link:
http://www.santander.com.mx/ir/english/financial/quarterly.html
3Q16 EARNINGS CALL
DIAL-IN INFORMATION
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Date:
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Thursday, October 27,
2016
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Time:
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10:00 AM (MCT); 11:00
PM (US ET)
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Dial-in
Numbers:
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1-877-407-4018 US
& Canada 1-201-689-8471 International &
Mexico
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Access
Code:
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Please ask for
Santander México Earnings Call
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Webcast:
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http://public.viavid.com/index.php?id=121426
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Replay:
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Starting: Thursday,
October 27, 2016 at 3:00 pm US ET, and Tuesday, November 1, 2016 at
11:59 pm US ET Dial-in number: 1-844-512-2921 US & Canada;
1-412-317-6671 International & Mexico Access Code:
13647351
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ABOUT GRUPO FINANCIERO SANTANDER MÉXICO, S.A.B. DE C.V. (NYSE: BSMX; BMV:
SANMEX)
Grupo Financiero Santander México, S.A.B. de
C.V. (Santander México), 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 México 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, 2016, Santander México had total assets of Ps.1,242
billion under Mexican Banking GAAP and more than 13 million
customers. Headquartered in Mexico
City, the Company operates 1,076 branches and 311 offices
nationwide and has a total of 16,828 employees.
LEGAL DISCLAIMER
Grupo Financiero Santander
México 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/grupo-financiero-santander-mexico-reports-third-quarter-2016-loan-portfolio-up-138-yoy-and-net-income-of-ps3926-million-300352522.html
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.