MEXICO CITY, April 28, 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 period ending March
31st, 2021.
Banco Santander México reported net income of Ps.3,279 million
in 1Q21, representing decreases of 39.4% YoY and 40.2% QoQ.
HIGHLIGHTS
|
|
|
|
|
|
|
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Results (Million
pesos)
|
|
1Q21
|
4Q20
|
1Q20
|
|
%QoQ
|
%YoY
|
Net interest
income
|
|
15,585
|
16,272
|
16,896
|
|
(4.2)
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(7.8)
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Fee and commission,
net
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|
4,902
|
4,709
|
4,697
|
|
4.1
|
4.4
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Core
revenues
|
|
20,487
|
20,981
|
21,593
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|
(2.4)
|
(5.1)
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Provisions for loan
losses
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|
7,075
|
3,152
|
5,165
|
|
124.5
|
37.0
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Administrative and
promotional expenses
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|
9,894
|
11,102
|
9,785
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|
(10.9)
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1.1
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Net income
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|
3,279
|
5,480
|
5,414
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(40.2)
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(39.4)
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Net income per
share1
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0.48
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0.81
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0.80
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(40.2)
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(39.4)
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|
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|
|
|
|
|
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Balance Sheet Data
(Million pesos)
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|
Mar-21
|
Dec-20
|
Mar-20
|
|
%QoQ
|
%YoY
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Total
assets
|
|
1,748,298
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1,856,213
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1,802,210
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|
(5.8)
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(3.0)
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Total
loans
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713,989
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702,769
|
775,809
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|
1.6
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(8.0)
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Deposits
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767,627
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764,444
|
810,340
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0.4
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(5.3)
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Shareholders´
equity
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|
159,654
|
158,871
|
141,041
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0.5
|
13.2
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|
|
|
|
|
|
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Key Ratios
(%)
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|
1Q21
|
4Q20
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1Q20
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|
bps
QoQ
|
bps
YoY
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Net interest
margin
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|
4.42
|
4.50
|
5.45
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(8)
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(103)
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Net loans to deposits
ratio
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89.76
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88.62
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92.94
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|
114
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(318)
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ROAE
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8.24
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14.73
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15.48
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(649)
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(724)
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ROAA
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|
0.73
|
1.34
|
1.35
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(61)
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(62)
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Efficiency
ratio
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46.62
|
52.06
|
43.95
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(544)
|
267
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Capital
ratio
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19.73
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19.01
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16.23
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|
72
|
350
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NPLs ratio
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2.91
|
3.08
|
2.16
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(17)
|
75
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Cost of
Risk
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|
3.15
|
2.89
|
2.65
|
|
26
|
50
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Coverage
ratio
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120.12
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116.87
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135.17
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|
325
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—
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Operating
Data
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Mar-21
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Dec-20
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Mar-20
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%QoQ
|
%YoY
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Branches
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1,007
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1,013
|
1,211
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(0.6)
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(16.8)2
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Branches and
offices3
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1,352
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1,350
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1,406
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|
0.1
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(3.8)
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ATMs
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|
9,497
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9,448
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9,096
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|
0.5
|
4.4
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Customers
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19,068,219
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18,707,976
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18,374,690
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|
1.9
|
3.8
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Employees
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22,280
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21,183
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19,469
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5.2
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14.4
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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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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: "We continued to advance on our
strategic initiatives, while closing the quarter with a strong
balance sheet and ample liquidity, despite the pandemic continuing
to weigh on our results. Loan volumes reflect difficult YoY comps,
mainly in corporates which is in line with market trends and, soft
demand conditions. Mortgages and auto loans continue to
perform extremely well, as we again grew above market and gained
share while maintaining prudent origination criteria. We have
fully absorbed the negative impact of the pandemic, mainly in
consumer loans, credit cards and SMEs and we are well positioned to
support our customers on the recovery path ahead. While loan
volumes in these segments show year on year contractions, we expect
to see a gradual turnaround moving forward.
Deposits also reflect difficult base effects, mainly in
corporates as companies' liquidity needs have normalized compared
with year ago levels. By contrast, individual demand deposits
continued to expand above 20%, underscoring the success of our
loyalty and customer acquisition strategy. In this context, our
strategy remains focused on reinforcing loyalty and advancing
digitalization. We remain committed to further improving our
digital customer journeys and building ecosystems, while keeping a
sustained focus on driving cross selling, non-credit products and
insurance to support fee income growth.
In terms of asset quality, NPLs have started to decline
benefiting from improving conditions for our customers together
with write-offs taken mainly in the segments mostly impacted by the
pandemic, such as, consumer, credit cards and SME loans. Although
provisions increased this quarter due to specific corporate
exposures, we estimate that cost of risk has peaked and should
start declining from this point onwards.
During the quarter, our parent company announced that it
intends to launch a tender offer for the 8.3% of outstanding shares
that it does not currently own in Santander Mexico. Our parent
company also stated that it intends to de-list Banco Santander
Mexico from the Mexican Stock Exchange and the New York Stock
Exchange. This offer reaffirms our parent company's trust in
the country and in our business.
Looking ahead, the recent evidence of a quick recovery in the
U.S. supported by a strong fiscal stimulus package and a swift
vaccination program has improved GDP expectations for the year.
While we anticipate an improvement in activity fueled by the
external sector and private consumption, we expect the recovery to
be gradual. Under this operational environment, we will continue to
work to further strengthen our business by reducing costs, while we
make additional headway improving our deposit mix and capitalizing
on growth opportunities to become a stronger organization."
VIII.1Q21 Earnings Call Dial-In Information
Date:
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Thursday, April,
29th, 2021
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Time:
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9:00 a.m. (MCT);
10:00 a.m. (US ET)
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Dial-in
Numbers:
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1-877-407-4018 US
& Canada 1-201-689-8471 International & Mexico
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Access
Code:
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Please ask for
Santander México Earnings Call
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Webcast:
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http://public.viavid.com/index.php?id=144457
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Replay:
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Starting: Thursday,
April 29th, 2021 at 1:00 p.m. (US ET)
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Ending: Thursday, May
6th, 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: 13718888
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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 March
31st, 2021, Banco Santander México had total
assets of Ps.1,748 billion under Mexican Banking GAAP and more
than 19.0 million customers. Headquartered in Mexico City, the Company operates 1,352
branches and offices nationwide and has a total of 22,280
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.