MEXICO CITY, July 29, 2020 /PRNewswire/ -- Banco Santander
México, S.A., Institución de Banca Múltiple, Grupo Financiero
Santander México (NYSE: BSMX; BMV: BSMX), ("Banco
Santander México" or "the Bank"), today announced financial results
for the three-month and six-month periods ending June 30th, 2020.
Banco Santander México reported net income of Ps.4,230 million
in 2Q20, representing decreases of 24.6% YoY and 21.9% QoQ. On a
cumulative basis, net income for the first half of the year,
reached Ps.9,644 million, representing a 11.5% YoY decrease.
HIGHLIGHTS
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Results
(Million pesos)
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2Q20
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1Q20
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2Q19
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%QoQ
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%YoY
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6M20
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6M19
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%YoY
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Net interest
income
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15,931
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16,896
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16,588
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(5.7)
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(4.0)
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32,827
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33,037
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(0.6)
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Fee and commission,
net
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4,598
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4,697
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4,697
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(2.1)
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(2.1)
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9,295
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9,123
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1.9
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Core
revenues
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20,529
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21,593
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21,285
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(4.9)
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(3.6)
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42,122
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42,160
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(0.1)
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Provisions for loan
losses
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8,350
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5,165
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4,454
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61.7
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87.5
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13,515
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8,772
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54.1
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Administrative and
promotional expenses
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9,599
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9,785
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9,482
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(1.9)
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1.2
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19,384
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18,738
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3.4
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Net income
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4,230
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5,414
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5,608
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(21.9)
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(24.6)
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9,644
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10,899
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(11.5)
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Net income per
share1
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0.62
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0.80
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0.83
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(21.8)
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(24.8)
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1.42
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1.61
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(11.7)
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Balance Sheet
Data (Million pesos)
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Jun-20
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Mar-20
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Jun-19
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%QoQ
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%YoY
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Jun-20
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Jun-19
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%YoY
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Total
assets
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1,929,350
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1,802,210
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1,368,187
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7.1
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41.0
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1,929,350
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1,368,187
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41.0
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Total
loans
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751,219
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775,809
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700,329
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(3.2)
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7.3
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751,219
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700,329
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7.3
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Deposits
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789,740
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810,340
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721,288
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(2.5)
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9.5
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789,740
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721,288
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9.5
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Shareholders´
equity
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146,536
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141,041
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133,829
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3.9
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9.5
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146,536
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133,829
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9.5
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Key Ratios
(%)
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2Q20
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1Q20
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2Q19
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bps
QoQ
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bps
YoY
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6M20
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6M19
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bps
YoY
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Net interest
margin
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4.48
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5.45
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5.76
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(97)
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(128)
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4.93
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5.67
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(74)
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Net loans to deposits
ratio
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91.81
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92.94
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94.13
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(113)
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(232)
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91.81
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94.13
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(232)
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ROAE
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11.86
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15.48
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17.29
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(362)
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(543)
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13.52
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16.80
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(328)
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ROAA
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1.01
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1.35
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1.63
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(34)
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(62)
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1.15
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1.59
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(44)
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Efficiency
ratio
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40.71
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43.95
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44.29
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(324)
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(358)
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42.28
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44.55
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(227)
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Capital
ratio
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16.69
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16.23
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16.50
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46
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19
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16.69
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16.50
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19
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NPLs ratio
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2.51
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2.16
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2.23
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35
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28
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2.51
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2.23
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28
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Cost of
Risk
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3.14
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2.65
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2.70
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49
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44
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3.14
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2.70
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44
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Coverage
ratio
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138.81
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135.17
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136.56
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364
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225
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138.81
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136.56
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225
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Operating
Data
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Jun-20
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Mar-20
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Jun-19
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%QoQ
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%YoY
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Jun-20
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Jun-19
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%YoY
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Branches
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1,050
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1,050
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1,220
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0.0
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(13.9)
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1,050
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1,220
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(13.9)
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Branches and
offices2
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1,406
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1,406
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1,394
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0.0
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0.9
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1,406
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1,394
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0.9
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ATMs
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9,142
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9,096
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8,749
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0.5
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4.5
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9,142
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8,749
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4.5
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Customers
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18,641,282
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18,374,959
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17,220,259
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1.4
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8.3
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18,641,282
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17,220,259
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8.3
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Employees
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20,062
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19,638
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19,403
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2.2
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3.4
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20,062
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19,403
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3.4
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1)
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Accumulated EPS, net
of treasury shares (compensation plan) and discontinued operations.
Calculated by using weighted number of shares.
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2)
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Includes cash desks
(espacios select, box select and corner select) and SMEs business
centers. Excluding brokerage house offices.
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Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "This past quarter was quite
challenging, as we began seeing the impact of the Covid-19 pandemic
on the Mexican economy, our business and, of course, our financial
results. Despite these adverse developments, our bank remains
strong and focused principally on three key areas: first, executing
our strategy to support customers and minimize the impact of the
pandemic on their finances; second, closely monitoring the asset
quality of our portfolio; and third, continue strengthening our
capital and liquidity levels, which remain solid and well above
minimum regulatory levels.
During the second quarter, loan volumes grew over 7%
year-over-year, while we experienced a shift in our portfolio mix
toward lower yielding segments. Consumer and SME loans started to
contract, in line with market trends. Although asset quality
deteriorated only slightly in the quarter, we decided to book
precautionary loan loss provisions of Ps.3.9 billion in addition to
normal quarterly provisions, in preparation for higher future
losses. On the other hand, total deposits continued to expand,
increasing 9.5% during the quarter, with individual demand deposits
growing at 23%, driven partly by our promotion campaigns and
strengthening our liquidity profile.
The solid growth in our retail deposits also reflects our
ongoing investments to enhance our bank's value offering, including
better digital experiences for customers. In this new environment,
the use of digital channels has increased steadily, with digital
sales almost doubling and now accounting for 44% of total product
sales. These investments have also strengthened customer loyalty,
helping us make significant progress in expanding our base of both
loyal and digital customers.
In response to the current health and economic crisis, we
have acted swiftly and decisively to fortify our bank, with the
goal of mitigating its impact on our operations and customers'
finances. In addition to maintaining protocols and measures
that help safeguard our employees and customers, we have continued
serving clients with high standards at our branches and via digital
channels. Our bank is well-positioned to help support
customers as they recover from this unprecedented crisis. That
confidence lies in our strong capital base and high levels of
liquidity, which will allow us to effectively meet the complex and
temporary challenges that we are facing."
2Q20 Earnings Call
Dial-In Information
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Date:
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Thursday, July,
30st, 2020
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Time:
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09:00 a.m. (MCT);
10:00 a.m. (US ET)
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Dial-in
Numbers:
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1-866-548-4713 US
& Canada 1-323-794-2093 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=140791
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Replay:
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Starting: Thursday,
July 30st, 2020 at 1:00 p.m. (US ET)
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Ending: Thursday,
August 6th, 2020 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: 6173068
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INVESTOR RELATIONS CONTACT
Héctor Chávez Lopez – Managing Director - IRO
+ 52 (55) 5269-1925
hchavez@santander.com.mx
Investor Relations
Team
investor@santander.com.mx
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,
2020, Banco Santander México had total assets of
Ps.1,929 billion under Mexican Banking GAAP and more than 18.6
million customers. Headquartered in Mexico City, the Company operates 1,406
branches and offices nationwide and has a total of 20,062
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 México, S.A.