MEXICO CITY, April 26, 2018 /PRNewswire/ -- Banco
Santander (México), S.A., Institución de Banca Múltiple, Grupo
Financiero Santander México, as succesor of Grupo Financiero
Santander México, S.A.B. de C.V. (NYSE: BSMX; BMV: BSMX before
SANMEX), ("Banco Santander México"), today announced
financial results for the three-months period ending March 31st, 2018.
Banco Santander México reported net income for 1Q18 of Ps.4,727
million, representing a YoY increase of 5.6% and a QoQ increase of
5.5%.
HIGHLIGHTS
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Results
(Million pesos)
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1Q18
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4Q17
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1Q17
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%
QoQ
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%
YoY
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Net interest
income
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|
14,615
|
13,847
|
13,420
|
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5.5
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8.9
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Fee and commission,
net
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4,069
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3,933
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3,763
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|
3.5
|
8.1
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Core
revenues
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18,684
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17,780
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17,183
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5.1
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8.7
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Provisions for loan
losses
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4,946
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5,431
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5,134
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(8.9)
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(3.7)
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Administrative and
promotional expenses
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8,218
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8,186
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7,325
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0.4
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12.2
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Net income
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4,727
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4,481
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4,475
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5.5
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5.6
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Net income per
share1 / 3
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0.70
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0.06
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0.06
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-
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-
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Balance Sheet
Data (Million pesos)
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1Q18
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4Q17
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1Q17
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%
QoQ
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%
YoY
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Total
assets
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1,288,249
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1,322,987
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1,267,388
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(2.6)
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1.6
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Total
loans
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630,999
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617,871
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584,711
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2.1
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7.9
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Deposits
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665,100
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647,854
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594,449
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2.7
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11.9
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Shareholders´
equity
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122,132
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116,205
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112,587
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5.1
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8.5
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Key Ratios
(%)
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1Q18
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4Q17
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1Q17
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bps
QoQ
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bps
YoY
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Net interest
margin
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5.52%
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5.32%
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5.26%
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19
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26
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Net loans to deposits
ratio
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91.88%
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92.28%
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95.01%
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(39)
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(313)
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ROAE
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15.87%
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16.04%
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16.28%
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(17)
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(42)
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ROAA
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1.45%
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1.33%
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1.36%
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12
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9
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Efficiency
ratio
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42.88%
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43.51%
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40.27%
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(62)
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262
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Capital
ratio
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15.71%
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15.73%
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16.73%
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(2)
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(102)
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NPLs ratio
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2.43%
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2.54%
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2.38%
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(11)
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5
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Cost of
Risk
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3.17%
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3.59%
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3.49%
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(42)
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(32)
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Coverage
ratio
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129.48%
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127.94%
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142.78%
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154
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(1,330)
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Operating
Data
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1Q18
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4Q17
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1Q17
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%
QoQ
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%
YoY
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Branches
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1,219
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1,220
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1,227
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(0.1)
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(0.7)
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Branches and
offices2
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1,375
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1,375
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1,366
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0.0
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0.7
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ATMs
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7,506
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7,323
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6,871
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2.5
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9.2
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Customers
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15,857,837
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15,446,314
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13,917,984
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2.7
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13.9
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Employees3
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17,829
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15,116
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14,555
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17.9
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22.5
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Employees -
Group
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17,829
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17,826
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16,927
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0.0
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5.3
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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) and SMEs
business centers. Excluding brokerage house offices.
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3) 2017 information
refers to Banco Santander México before corporate reorganization.
As of 1Q18, all employees from the rest of subsidiaries are already
registered at the bank.
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Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "We started 2018 in a strong position,
with accelerating loan growth, continued strong expansion in
our deposit base, and improvements in asset quality metrics driving
profitability."
Underscored by our client-centric focus on individuals and
SMEs, our deposit base increased by 12% year-on-year, as we pursue
our goal of expanding our retail business. The continued success of
our Santander Plus loyalty program has also contributed to this
growth, reaching 3.5 million customers at the close of the
quarter. We are pleased with the good performance of our loan
book, which expanded by 8% compared to the year before. High-margin
loans in particular, grew by almost 10% year-on-year, contributing
to NIM expanding to 5.52%. Growth was achieved while improving cost
of risk and NPL ratios.
We are determined to become our clients' primary bank, and in
this regard, customer retention remains key to our strategy.
Accordingly, digitization and mobile banking remain the
cornerstones of our operational innovation and business
transformation efforts, and our investments in these areas are
paying off, with digital and mobile customers growing by 37% and
71% respectively. While there is significant work ahead, the first
quarter of 2018 has set us up well for the rest of the
year.
As we execute our strategic plans to transform our operations
and launch new digital capabilities so as to strengthen our
franchise, these initiatives will continue to impact efficiency in
the short term. We look forward to sharing our progress with you as
we continue to move ahead.
1Q18 EARNINGS CALL DIAL-IN INFORMATION
Date:
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Friday, April
27th, 2018
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Time:
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10:00 a.m. (MCT);
11:00 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=129231
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Replay:
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Starting: Friday,
April 27th, 2018 at 12:00 p.m. (US ET)
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Ending: Wednesday,
May 2nd, 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: 13678688
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www.santander.com.mx
ABOUT BANCO SANTANDER MÉXICO (NYSE: BSMX; BMV:
BSMX)
Banco Santander (México), S.A., Institución de Banca
Múltiple, Grupo Financiero Santander México (Banco Santander
México), one of Mexico's leading
banking institutions, provides a wide range of financial and
related services, including retail and commercial banking,
financial advisory and other related investment activities. Banco
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, Banco Santander México had total assets of Ps.1,288
billion under Mexican Banking GAAP and more than 15.8 million
customers. Headquartered in Mexico
City, the Company operates 1,375 branches and offices
nationwide and has a total of 17,829 employees.
LEGAL DISCLAIMER
Banco 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 our 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. The words "believe," "may,"
"will," "aim," "estimate," "continue," "anticipate," "intend,"
"expect," "forecast" and similar words are intended to identify
forward-looking statements. You should not place undue reliance on
such statements, which speak only as of the date they were made. We
undertake no obligation to update publicly or to revise any
forward-looking statements after we distribute this presentation
because of new information, future events or other factors. In
light of the risks and uncertainties described above, the future
events and circumstances discussed herein might not occur and are
not guarantees of future 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
Mexican pesos, unless otherwise indicated. Historical figures are
not adjusted by inflation.
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SOURCE Banco Santander (Mexico)
S.A.