MEXICO CITY, Jan. 31, 2018 /PRNewswire/ -- Banco
Santander (México), S.A., Institución de Banca Múltiple, Grupo
Financiero Santander México, as successor of Grupo Financiero
Santander México, S.A.B. de C.V. (NYSE: BSMX; BMV: BSMX before
SANMEX), ("Santander México"), today announced financial
results for the three-month and twelve-month periods ending
December 31st, 2017.
Santander México reported net income for 4Q17 of Ps.4,515
million, representing a YoY decrease of 0.6% and a QoQ increase of
11.0%. On a cumulative basis, net income for 12M17 reached
Ps.17,710 million, representing a 12.7% YoY increase.
HIGHLIGHTS
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Results
(Million pesos)
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4Q17
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3Q17
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4Q16
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%
QoQ
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%
YoY
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12M17
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12M16
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%
YoY
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Net interest
income
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13,871
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14,264
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12,950
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(2.8)
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7.1
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55,116
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48,878
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12.8
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Fee and commission,
net
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4,109
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4,035
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3,917
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1.8
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4.9
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16,171
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15,247
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6.1
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Core
revenues
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17,980
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18,299
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16,867
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(1.7)
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6.6
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71,287
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64,125
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11.2
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Provisions for loan
losses
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5,431
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5,603
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4,768
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(3.1)
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13.9
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21,409
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18,877
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13.4
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Administrative and
promotional expenses
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8,402
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8,039
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7,283
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4.5
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15.4
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31,873
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28,235
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12.9
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Net income
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4,515
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4,066
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4,542
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11.0
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(0.6)
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17,710
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15,715
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12.7
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Net income per
share1
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0.67
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0.60
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0.67
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11.7
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0.0
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2.61
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2.32
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12.5
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Balance Sheet
Data (Million pesos)
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4Q17
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3Q17
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4Q16
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%
QoQ
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%
YoY
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12M17
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12M16
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%
YoY
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Total
assets
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1,324,175
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1,235,717
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1,374,079
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7.2
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(3.6)
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1,324,175
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1,374,079
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(3.6)
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Total
loans
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617,871
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613,262
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591,428
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0.8
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4.5
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617,871
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591,428
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4.5
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Deposits
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647,670
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626,376
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593,485
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3.4
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9.1
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647,670
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593,485
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9.1
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Shareholders´
equity
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116,850
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119,420
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109,338
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(2.2)
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6.9
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116,850
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109,338
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6.9
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Key Ratios
(%)
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4Q17
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3Q17
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4Q16
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bps
QoQ
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bps
YoY
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12M17
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12M16
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bps
YoY
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Net interest
margin
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5.34%
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5.81%
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5.12%
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(47)
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22
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5.43%
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4.97%
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46
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Net loans to deposits
ratio
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92.30%
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94.64%
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96.30%
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(234)
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(400)
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92.30%
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96.30%
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(400)
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ROAE
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15.97%
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14.22%
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16.30%
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175
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(33)
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15.66%
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14.10%
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156
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ROAA
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1.34%
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1.25%
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1.42%
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9
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(8)
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1.31%
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1.23%
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8
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Efficiency
ratio
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44.06%
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42.69%
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40.37%
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137
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369
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42.27%
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41.68%
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59
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Capital
ratio
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15.73%
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16.19%
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15.74%
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(46)
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(1)
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15.73%
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15.74%
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(1)
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NPLs ratio
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2.54%
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2.26%
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2.48%
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28
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6
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2.54%
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2.48%
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6
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Cost of
Risk
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3.59%
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3.72%
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3.35%
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(13)
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24
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3.54%
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3.31%
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23
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Coverage
ratio
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127.94%
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147.41%
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135.61%
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(1,947)
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(767)
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127.94%
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135.61%
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(767)
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Operating
Data
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4Q17
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3Q17
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4Q16
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%
QoQ
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%
YoY
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12M17
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12M16
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%
YoY
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Branches
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1,224
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1,224
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1,226
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0.0
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(0.2)
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1,224
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1,226
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(0.2)
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Branches and
offices2
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1,401
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1,401
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1,389
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0.0
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0.9
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1,401
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1,389
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0.9
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ATMs
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7,323
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7,193
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6,825
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1.8
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7.3
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7,323
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6,825
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7.3
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Customers
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15,446,306
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15,017,610
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13,553,013
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2.9
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14.0
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15,446,306
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13,553,013
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14.0
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Employees
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17,826
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17,528
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16,976
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1.7
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5.0
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17,826
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16,976
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5.0
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1) Accumulated EPS,
net of treasury shares (compensation plan) and discontinued
operations. Calculated by using weighted number of
shares.
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2) Includes cash
desks (espacios select, box select and corner select), SMEs
business centers and brokerage house offices.
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Héctor Grisi, Grupo Financiero Santander México's Executive
President and CEO, commented: "One year into our three-year
investment plan, we are proud of the foundation we have built to
become a client-centric bank, placing customers at the center of
all we do. While initiatives to streamline our processes and
enhance digital capabilities will impact near-term results, we are
confident that we are taking the right steps to optimally position
our business for the future.
In particular, we are addressing our relatively lower retail
business exposure, making important headway in reducing attrition
and attracting new customers. At the same time, we are mindful that
loyal customers are key to profitability, and are ensuring that
they remain satisfied.
Our investment in digitalization and mobile banking is
underpinning operational innovation and business transformation at
Santander Mexico. These initiatives helped us achieve over 25%
growth in loyal customers to over 2 million, almost doubling net
new customers over the year. Similarly, digital customers grew by
45% and mobile customers by 67% year-on-year. While our focus on
margins will enable us to drive higher profitability in coming
years, this is resulting in higher expenses and muting profits in
the short term.
In consumer loans we continue to see good traction, while
expanding selectively in corporate and government loans as we
prioritize margins over market share. Similarly, our client-centric
focus on individuals and SMEs along with strong dynamics for
Santander Plus are supporting ongoing deposit growth. Importantly,
we maintain healthy asset quality, while keeping stringent
standards for loan origination, and recently completed the clean-up
of our homebuilder portfolio.
We are confident of our strategy to build a stronger, more
profitable franchise despite the challenging environment and are
pleased with the progress of our initiatives as we execute our
investment plan. We remain focused on strengthening our position in
retail banking, and realizing the potential of our corporate and
investment bank. As such, we look to the coming year with cautious
optimism and confidence in our execution."
4Q17 EARNINGS CALL DIAL-IN INFORMATION
Date:
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Thursday, February
1st, 2018
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Time:
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9:00 a.m. (MCT);
10:00 a.m. (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=127923
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Replay:
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Starting: Thursday,
February 1st, 2018 at 1:00 p.m. (US ET)
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Ending: Tuesday,
February 6th, 2018 at 11:59 p.m. (US ET)
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ET Dial-in number:
1-844-512-2921 US & Canada; 1-412-317-6671 International &
Mexico Access Code: 13675318
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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 December
31st, 2017, Santander México had total assets of
Ps.1,324 billion under Mexican Banking GAAP and more than 15
million customers. Headquartered in Mexico City, the Company operates 1,401
branches and offices nationwide and has a total of 17,826
employees.
As such, Banco Santander (México), S.A., Institución de Banca
Múltiple, Grupo Financiero Santander México ("BSMX"), in its
capacity successor to Grupo Financiero Santander México, S.A.B. de
C.V. ("Sanmex"), presents, for informational purposes only, the
internal financial statements of Sanmex for the three months and
twelve months ended December 31, 2017
in order to maintain continuity in the disclosure of financial
information for Sanmex.
The above-mentioned financial statements of Sanmex are in
addition to the internal financial statements of BSMX for the three
months and twelve months ended December 31,
2017, which financial statements are also published as of
the date hereof.
LEGAL DISCLAIMER
Grupo Financiero Santander México
cautions that this presentation may contain forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements
could be found in various places throughout this presentation 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; financing plans;
competition; impact of regulation and the interpretation thereof;
action to modify or revoke Grupo Financiero Santander México's
authorization to act as a sociedad controladora de un grupo
financiero or Banco Santander México's banking license; 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; investment in
our information technology platform; 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, many important factors
could cause actual results to differ substantially from those
anticipated in forward-looking statements. These factors include,
among other things: 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 México); 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
and tax laws; 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 allowance
for impairment losses and other losses; increased default by
borrowers; our inability to successfully and effectively integrate
acquisitions or to evaluate risks arising from asset acquisitions;
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 or their interpretation; and certain
other risk factors included in our annual report on Form 20-F. 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 presentation 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 millions of
nominal Mexican pesos, unless otherwise indicated. Historical
figures are not adjusted by inflation.
View original
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SOURCE Banco Santander (México), S.A.