MEXICO CITY, April 28, 2017 /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 period ending March 31, 2017.
Santander México reported net income for 1Q17 of Ps.4,520
million, representing a YoY increase of 27.7% and a QoQ decrease of
0.5%.
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HIGHLIGHTS
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Income Statement
Data
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1Q17
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4Q16
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1Q16
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%
YoY
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%
QoQ
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Net interest
income
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13,434
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12,950
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11,700
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14.8
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3.7
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Fee and commission,
net
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3,926
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3,917
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3,609
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8.8
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0.2
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Core
revenues
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17,360
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16,867
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15,309
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13.4
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2.9
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Provisions for loan
losses
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5,134
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4,768
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4,709
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9.0
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7.7
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Administrative and
promotional expenses
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7,481
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7,283
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6,889
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8.6
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2.7
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Net income
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4,520
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4,542
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3,539
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27.7
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(0.5)
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Net income per
share1
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0.67
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2.32
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0.52
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28.8
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(71.1)
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Balance Sheet
Data
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1Q17
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4Q16
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1Q16
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%
YoY
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%
QoQ
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Total
assets
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1,268,528
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1,374,079
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1,233,013
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2.9
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(7.7)
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Total
loans
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584,711
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591,428
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543,252
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7.6
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(1.1)
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Deposits
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594,270
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593,485
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518,832
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14.5
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0.1
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Shareholders´s
equity
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114,709
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109,338
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117,317
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(2.2)
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4.9
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Key
Ratios
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1Q17
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4Q16
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1Q16
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bps
YoY
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bps
QoQ
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Net interest
margin
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5.27%
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5.12%
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4.86%
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41.5
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15.6
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Net loans to deposits
ratio
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95.0%
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96.3%
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101.0%
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(600.3)
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(125.5)
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ROAE
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16.1%
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16.3%
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12.3%
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387.6
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(16.3)
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ROAA
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1.4%
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1.4%
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1.2%
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19.7
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(5.2)
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Efficiency
ratio
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40.6%
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40.4%
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42.4%
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(180.4)
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24.9
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Capital
ratio
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16.7%
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15.7%
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15.4%
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132.0
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99.0
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NPLs ratio
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2.38%
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2.48%
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2.97%
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(59.0)
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(9.9)
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Cost of
Risk
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3.5%
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3.3%
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3.5%
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3.9
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14.4
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Coverage
ratio
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142.8%
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135.6%
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117.6%
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2,518.9
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716.6
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Operating
Data
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1Q17
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4Q16
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1Q16
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%
YoY
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%
QoQ
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Branches and
Offices2
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1,391
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1,389
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1,386
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0.4
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0.1
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ATMs
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6,871
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6,825
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6,040
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13.8
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0.7
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Customers
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13,918,571
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13,553,013
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12,746,179
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9.2
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2.7
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Employees
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16,927
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16,976
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17,203
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(1.6)
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(0.3)
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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 1Q17
includes: 1,076 branches (including 121 branches with Select
service) + 18 SME offices + 7 SME branches + 131 cash desks
(including 1 cash desk with Select service) + 13 Select offices +
43 Select units + 58 Select boxes + 20 Select corner + 25 brokerage
house branches
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Héctor Grisi, Grupo Financiero Santander México's
Executive President and CEO, commented: "We
started the year in a strong position, demonstrating our ability to
deliver consistent profitability, even as the macro backdrop
remains uncertain.
"We remain focused on
becoming a truly client-centric bank, and are proud of our sound
asset quality and profitability across the board. As ever, we are
committed to boosting productivity by prioritizing innovation,
investment, and scaling operating efficiencies.
"We posted robust NII,
up 15% year-on-year, despite more muted volume growth consistent
with our focus on profitability along with stiff competition. Our
initiatives to offer an attractive value proposition for
Individuals and SMEs through innovative products and a client
centric approach are driving strong deposit growth.
"The Santander Plus
program continues to gain traction, reaching more than 1.5 million
customers, 52% of which are new. Similarly, the
Santander-Aeroméxico co-branded card is showing robust performance,
reaching 500,000 customers, of which 34% are new to the bank.
Overall, the number of net new clients has grown over 170% since
May 2016, reflecting a combination of
new clients, but most importantly lower attrition. Loyal and
digital clients have grown 21% and 61%, respectively. In addition,
we continue to launch innovative products and upgrade our
transaction and operational model to enhance the customer journey
and sharpen our competitive position.
"Our disciplined
approach to asset quality is paying off, with our non-performing
loan ratio falling to 2.38% in the quarter – a 50 bps YoY
improvement consistent with our risk appetite.
"Overall, we reported a
solid bottom line with net income up a 28% YoY to 4.5 billion pesos, and ROAE up 380 basis points
to 16.1%. This performance underscores the resilience of Santander
México's business against a volatile global backdrop, as we execute
our strategic initiatives and focus on risk-weighted asset returns
and efficiency. Looking forward, we are committed to ongoing
investment to drive innovation and strengthen our business,
maintaining a strong focus on profitability and
efficiency."
1Q17 EARNINGS CALL DIAL-IN
INFORMATION
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Date:
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Friday, April 28,
2017
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Time:
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8:00 AM (MCT); 9:00
AM (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=123678
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Replay:
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Starting: Friday,
April 28, 2017 at 12:00 pm US ET, and Wednesday, May 3, 2017 at
11:59 pm US
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ET Dial-in
number:
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1-844-512-2921 US
& Canada; 1-412-317-6671 International & Mexico Access
Code: 13659094
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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 March 31,
2017, Santander México had total assets of Ps.1,269 billion
under Mexican Banking GAAP and more than 13.9 million customers.
Headquartered in Mexico City, the
Company operates 1,076 branches and 315 offices nationwide and has
a total of 16,927 employees.
www.santander.com.mx
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-first-quarter-2017-net-income-of-ps4520-million-300447952.html
SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.