MEXICO CITY, July 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-month and six-month periods ending
June 30th, 2018.
Banco Santander México reported net income for 2Q18 of Ps.5,171
million, representing a YoY increase of 12.1% and a QoQ increase of
9.4%.
HIGHLIGHTS
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Results (Million pesos)
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2Q18
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1Q18
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2Q17
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%QoQ
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%YoY
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6M18
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6M17
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%YoY
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Net interest
income
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14,795
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14,615
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13,506
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1.2
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9.5
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29,410
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26,926
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9.2
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Fee and commission,
net
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4,262
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4,069
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4,003
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4.7
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6.5
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8,331
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7,766
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7.3
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Core
revenues
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19,057
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18,684
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17,509
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2.0
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8.8
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37,741
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34,692
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8.8
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Provisions for loan
losses
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4,667
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4,946
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5,241
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(5.6)
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(11.0)
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9,613
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10,375
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(7.3)
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Administrative
and
promotional expenses
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8,845
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8,218
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7,806
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7.6
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13.3
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17,063
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15,131
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12.8
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Net income
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5,171
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4,727
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4,611
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9.4
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12.1
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9,898
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9,086
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8.9
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Net income per
share1 / 3
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0.76
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0.70
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0.06
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8.6
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—
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1.46
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0.11
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—
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Balance Sheet
Data (Million
pesos)
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2Q18
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1Q18
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2Q17
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%QoQ
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%YoY
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6M18
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6M17
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%YoY
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Total
assets
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1,378,611
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1,288,249
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1,208,211
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7.0
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14.1
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1,378,611
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1,208,211
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14.1
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Total
loans
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652,251
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630,999
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589,910
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3.4
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10.6
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652,251
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589,910
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10.6
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Deposits
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698,118
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665,100
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617,793
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5.0
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13.0
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698,118
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617,793
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13.0
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Shareholders´
equity
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122,520
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122,132
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112,866
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0.3
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8.6
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122,520
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112,866
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8.6
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Key Ratios
(%)
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2Q18
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1Q18
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2Q17
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bps
QoQ
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bps
YoY
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6M18
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6M17
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bps
YoY
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Net interest
margin
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5.27%
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5.52%
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5.29%
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(25)
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(2)
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5.39%
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5.28%
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11
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Net loans to deposits
ratio
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90.56%
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91.88%
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92.22%
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(132)
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(166)
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90.56%
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92.22%
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(166)
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ROAE
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17.33%
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15.87%
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16.76%
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146
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57
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16.58%
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16.51%
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7
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ROAA
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1.53%
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1.45%
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1.43%
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8
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10
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1.47%
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1.41%
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6
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Efficiency
ratio
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43.46%
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42.88%
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41.23%
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58
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223
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43.18%
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40.76%
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242
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Capital
ratio
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15.52%
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15.71%
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16.17%
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(19)
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(65)
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15.52%
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16.17%
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(65)
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NPLs ratio
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2.46%
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2.43%
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2.29%
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3
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17
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2.46%
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2.29%
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17
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Cost of
Risk
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2.94%
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3.17%
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3.55%
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(23)
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(61)
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3.03%
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3.51%
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(48)
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Coverage
ratio
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124.79%
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129.48%
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149.68%
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(469)
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(2,489)
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124.79%
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149.68%
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(2,489)
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Operating
Data
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2Q18
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1Q18
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2Q17
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%QoQ
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%YoY
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6M18
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6M17
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%YoY
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Branches
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1,220
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1,219
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1,228
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0.1
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(0.7)
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1,220
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1,228
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(0.7)
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Branches and
offices2
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1,376
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1,375
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1,374
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0.1
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0.1
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1,376
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1,374
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0.1
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ATMs
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7,778
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7,506
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7,016
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3.6
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10.9
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7,778
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7,016
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10.9
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Customers
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16,231,111
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15,857,837
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14,358,756
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2.4
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13.0
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16,231,111
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14,358,756
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13.0
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Employees3
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18,268
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17,829
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14,758
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2.5
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23.8
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18,268
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14,758
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23.8
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Employees -
Group
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18,268
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17,829
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17,209
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2.5
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6.2
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18,268
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17,209
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6.2
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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 have delivered another solid quarter
with robust performance across the board, a pick-up in loans and
deposits, higher gross operating income, and strong asset
quality.
Deposits performed particularly well, up 13% year-on-year and
5% sequentially, expanding above market growth. Our strategy to
attract deposits through the successful Santander Plus program,
along with our customer centric approach and digitalization
initiatives to expand payroll accounts continues to deliver good
results. Moreover, the expansion in deposits from individuals (both
demand and term deposits) is outpacing growth in corporate deposits
– a critical step to achieving our goal of increasing exposure to
retail clients.
We are also pleased with the accelerated growth we have
achieved in high margin loan segments, while consistently reducing
cost of risk during the past three quarters and keeping healthy
asset quality levels. While the implementation of our strategic
initiatives is impacting our near-term efficiency, our strategic
focus has still allowed us to turn in higher profitability this
quarter, expanding ROE north of 16.5% in the first half of the
year.
Looking ahead, the positive overall economic environment,
sound macro dynamics, promising consumer trends, and lower
short-term uncertainty, leads us to take a more constructive view.
As one of the leading banks in the Mexican financial system, we are
well positioned to significantly expand our retail customer base as
we continue to leverage our strong position in SMEs,
Middle-Markets, and Corporate Investment Banking.
Working towards our goal of attracting new customers and
reducing attrition while becoming a market leader in profitability,
we are enhancing the customer experience, developing a culture of
quality across the organization, and implementing our
digitalization initiatives, while also improving our infrastructure
and processes. We are committed to the development of our business
in Mexico, and we look forward to
sharing additional updates with you as we continue to make headway
on our strategic initiatives."
2Q18 EARNINGS CALL DIAL-IN INFORMATION
Date:
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Friday, July
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=130497
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Replay:
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Starting: Friday,
July 27th, 2018 at 2:00 p.m. (US ET)
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Ending: Wednesday,
August 1st, 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: 13681573
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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 June 30,
2018, Banco Santander México had total assets of Ps.1,379
billion under Mexican Banking GAAP and more than 16.0 million
customers. Headquartered in Mexico
City, the Company operates 1,376 branches and offices
nationwide and has a total of 18,268 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.