MEXICO CITY, Feb. 3, 2021 /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 twelve-month periods ending
December 31st, 2020.
Banco Santander México reported net income of Ps.5,480 million
in 4Q20, representing increases of 11.5% YoY and 8.9% QoQ. On a
cumulative basis, net income for 12M20 reached Ps.20,154 million,
representing a 5.5% YoY decrease.
HIGHLIGHTS
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Results (Million
pesos)
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4Q20
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3Q20
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4Q19
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%QoQ
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%YoY
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12M20
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12M19
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%YoY
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Net interest
income
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16,272
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16,089
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16,727
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1.1
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(2.7)
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65,188
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66,353
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(1.8)
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Fee and commission,
net
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4,709
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4,690
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4,325
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0.4
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8.9
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18,694
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18,028
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3.7
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Core
revenues
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20,981
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20,779
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21,052
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1.0
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(0.3)
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83,882
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84,381
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(0.6)
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Provisions for loan
losses
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3,152
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4,596
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4,862
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(31.4)
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(35.2)
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21,263
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18,112
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17.4
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Administrative and
promotional expenses
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11,102
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10,429
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10,344
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6.5
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7.3
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40,915
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38,865
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5.3
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Net income
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5,480
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5,030
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4,916
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8.9
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11.5
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20,154
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21,332
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(5.5)
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Net income per
share1
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0.81
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0.74
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0.73
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8.9
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11.4
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2.97
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3.14
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(5.4)
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Balance Sheet Data
(Million pesos)
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Dec-20
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Sep-20
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Dec-19
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%QoQ
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%YoY
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Dec-20
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Dec-19
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%YoY
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Total
assets
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1,856,213
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1,858,684
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1,411,994
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(0.1)
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31.5
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1,856,213
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1,411,994
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31.5
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Total
loans
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702,769
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735,330
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713,680
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(4.4)
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(1.5)
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702,769
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713,680
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(1.5)
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Deposits
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764,444
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772,984
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692,537
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(1.1)
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10.4
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764,444
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692,537
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10.4
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Shareholders´
equity
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158,871
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151,475
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138,695
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4.9
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14.5
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158,871
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138,695
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14.5
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Key Ratios
(%)
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4Q20
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3Q20
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4Q19
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bps
QoQ
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bps
YoY
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12M20
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12M19
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bps
YoY
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Net interest
margin
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4.50
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4.50
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5.39
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0
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(89)
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4.71
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5.61
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(90)
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Net loans to deposits
ratio
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88.62
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91.78
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99.95
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(316)
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(1,133)
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88.62
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99.95
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(1,133)
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ROAE
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14.73
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13.87
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14.88
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86
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(15)
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13.55
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16.14
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(259)
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ROAA
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1.34
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1.23
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1.41
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11
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(7)
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1.23
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1.53
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(30)
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Efficiency
ratio
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52.06
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48.14
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47.21
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392
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485
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46.06
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45.37
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69
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Capital
ratio
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19.01
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17.16
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16.37
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185
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264
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19.01
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16.37
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264
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NPLs ratio
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3.08
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2.09
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2.28
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99
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80
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3.08
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2.28
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80
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Cost of
Risk
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2.89
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3.13
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2.60
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(24)
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29
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2.89
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2.60
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29
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Coverage
ratio
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116.87
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167.94
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132.02
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—
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—
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116.87
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132.02
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—
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Operating
Data
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Dec-20
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Sep-20
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Dec-19
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%QoQ
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%YoY
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Dec-20
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Dec-19
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%YoY
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Branches
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1,013
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1,050
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1,209
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(3.5)
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(16.2)2
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1,013
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1,209
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(16.2)2
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Branches and
offices3
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1,350
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1,407
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1,402
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(4.1)
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(3.7)
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1,350
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1,402
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(3.7)
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ATMs
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9,448
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9,365
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9,015
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0.9
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4.8
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9,448
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9,015
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4.8
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Customers
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18,707,976
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18,796,611
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18,134,468
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(0.5)
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3.2
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18,707,976
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18,134,468
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3.2
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Employees
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21,422
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20,922
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19,975
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2.4
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7.2
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21,422
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19,975
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7.2
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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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Reflects the internal
reclassification as of 2Q20 and the closing of certain
branches.
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3)
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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 quarter we concluded an
extraordinarily challenging year, delivering solid and robust
results in a still very weak and complex operating environment.
Despite the small contraction of our loan book, we maintained
strong performance levels in mortgages and auto loans, registering
historically-high origination levels, while other consumer and
commercial loans continued contracting in line with market trends
and weak demand conditions. On the other hand, deposits remained
resilient, particularly individual demand deposits, which increased
over 20%, due in part to our successful loyalty and customer
acquisition strategies. Corporate demand deposits also registered
double-digit growth, as companies continued favoring liquidity over
investments. As well, a prudent balance sheet approach enabled us
to maintain ample levels of liquidity and capital, providing
meaningful capacity for additional investments in our business and
communities.
In terms of asset quality, we are pleased to report that 75%
of the loan portfolio under the payment holiday program, which
supports retail and SME customers, remains current. Only 9% are
late in their payments, and we have restructured the other 16% of
these loans; these levels are better than we initially forecasted
and in line with the system. At the same time, we will continue
executing the recoveries and restructurings plan that has enabled
us to act swiftly and preemptively to effectively respond to
adverse developments, while helping customers overcome temporary
financial difficulties. Due to the better-than-expected performance
in our asset quality, we are confident that the nearly Ps.4 billion
of anticipated provisions that were built into second quarter 2020
should be sufficient to address any further deterioration in the
portfolio associated with the holiday program.
Our focus on effectively managing risk in the current
environment hasn't displaced our strategic priorities, which remain
centered on building a stronger bank for the future. We continue
shifting the business mix toward a higher share of retail loans and
lower-cost deposits, while advancing our core plan to grow our base
of loyal customers even more. Further digitalization of our
operations also remains a priority as we continue investing in
technology. Part of our digitalization strategy is collaborating
with fintechs and other tech companies to produce tools and
functionalities within our digital offering that are increasing
customer engagement and driving higher transaction level and
digital sales. During the most recent quarter, almost half of our
total sales were completed through digital channels, compared to
one-third only a year ago. Further, digital transactions
accounted for 34% of total transactions, compared to 20% the
previous year.
Even though visibility is better than in recent quarters, we
expect the speed of an economic recovery will be largely dependent
on the pace of the vaccination program. Because this variable
remains uncertain, we anticipate anemic loan demand during most of
the year, although likely accelerating during the second half as
the vaccination program's progress starts improving consumer and
business confidence. Nevertheless, the consistent execution of our
strategy, in addition to our bank's strong liquidity and capital
position, mean we remain well positioned to continue effectively
weathering a still harsh economic environment as well as to
capitalize on growth opportunities that will invariably arise as
the pandemic subsides and eventually ends."
4Q20 Earnings Call Dial-In Information
Date:
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Thursday, February,
4th, 2020
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Time:
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10:00 a.m. (MCT);
11:00 p.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=143157
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Replay:
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Starting: Thursday,
February 4th, 2021 at 2:00 p.m. (US ET)
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Ending: Thursday,
February 11th, 2021 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: 13715461
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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 December
31st, 2020, Banco Santander México had total
assets of Ps.1,856 billion under Mexican Banking GAAP and more
than 18.7 million customers. Headquartered in Mexico City, the Company operates 1,350
branches and offices nationwide and has a total of 21,422
employees.
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
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.