MEXICO CITY, Oct. 26, 2017 /PRNewswire/ -- Grupo
Financiero Santander México, S.A.B. de C.V., (NYSE: BSMX; BMV:
SANMEX), ("Santander México"), one of the leading financial
groups in Mexico, today announced
financial results for the three-month and nine-month periods ending
September 30th, 2017.
Santander México reported net income for 3Q17 of Ps.4,066
million, representing a YoY increase of 3.6% and a QoQ decrease of
11.8%. On a cumulative basis, net income for 9M17 reached Ps.13,195
million, representing a 18.1% YoY increase.
HIGHLIGHTS
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Results
(Million pesos)
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3Q17
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2Q17
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3Q16
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%
QoQ
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%
YoY
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9M17
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9M16
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%
YoY
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Net interest
income
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14,264
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13,547
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12,411
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5.3
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14.9
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41,245
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35,928
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14.8
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Fee and commission,
net
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4,035
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4,101
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3,739
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(1.6)
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7.9
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12,062
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11,330
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6.5
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Core
revenues
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18,299
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17,648
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16,150
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3.7
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13.3
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53,307
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47,258
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12.8
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Provisions for loan
losses
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5,603
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5,241
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4,889
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6.9
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14.6
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15,978
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14,109
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13.2
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Administrative
and
promotional
expenses
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8,039
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7,951
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7,048
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1.1
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14.1
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23,471
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20,952
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12.0
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Net income
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4,066
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4,609
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3,926
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(11.8)
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3.6
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13,195
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11,173
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18.1
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Net income per
share1
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0.60
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0.68
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0.58
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(11.8)
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3.4
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1.94
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1.65
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17.6
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Balance Sheet
Data
(Million
pesos)
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3Q17
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2Q17
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3Q16
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%
QoQ
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%
YoY
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9M17
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9M16
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%
YoY
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Total
assets
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1,235,717
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1,209,059
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1,242,258
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2.2
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(0.5)
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1,235,717
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1,242,258
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(0.5)
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Total
loans
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613,262
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589,910
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598,829
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4.0
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2.4
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613,262
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598,829
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2.4
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Deposits
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626,376
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617,467
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542,191
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1.4
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15.5
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626,376
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542,191
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15.5
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Shareholders´
equity
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119,420
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114,969
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121,107
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3.9
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(1.4)
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119,420
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121,107
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(1.4)
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Key Ratios
(%)
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3Q17
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2Q17
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3Q16
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bps
QoQ
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bps
YoY
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9M17
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9M16
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bps
YoY
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Net interest
margin
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5.81%
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5.31%
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5.01%
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50
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80
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5.46%
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4.92%
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54
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Net loans to deposits
ratio
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94.64%
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92.27%
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106.73%
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237
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(1,209)
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94.64%
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106.73%
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(1,209)
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ROAE
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14.22%
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16.44%
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13.38%
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(222)
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84
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15.38%
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12.70%
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268
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ROAA
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1.25%
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1.43%
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1.29%
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(18)
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(4)
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1.35%
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1.23%
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12
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Efficiency
ratio
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42.69%
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41.67%
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41.34%
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102
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135
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41.67%
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42.16%
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(49)
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Capital
ratio
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16.19%
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16.17%
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16.01%
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2
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18
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16.19%
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16.01%
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18
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NPLs ratio
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2.26%
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2.29%
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2.82%
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(3)
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(56)
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2.26%
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2.82%
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(56)
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Cost of
Risk
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3.72%
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3.55%
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3.41%
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17
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31
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3.54%
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3.28%
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26
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Coverage
ratio
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147.41%
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149.68%
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119.13%
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(227)
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2,828
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147.41%
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119.13%
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2,828
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Operating
Data
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3Q17
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2Q17
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3Q16
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%
QoQ
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%
YoY
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9M17
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9M16
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%
YoY
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Branches
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1,224
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1,228
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1,226
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(0.3)
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(0.2)
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1,224
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1,226
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(0.2)
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Branches and
offices2
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1,401
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1,399
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1,387
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0.1
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1.0
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1,401
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1,387
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1.0
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ATMs
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7,193
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7,016
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6,620
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2.5
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8.7
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7,193
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6,620
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8.7
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Customers
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15,017,610
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14,359,246
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13,150,684
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4.6
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14.2
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15,017,610
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13,150,684
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14.2
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Employees
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17,528
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17,209
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16,828
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1.9
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4.2
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17,528
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16,828
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4.2
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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) IIncludes cash
desks (espacios select, box select and corner select), SMEs
business centers and brokerage house offices.
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Héctor Grisi, Grupo Financiero Santander México's Executive
President and CEO, commented, "We reported strong underlying
third quarter results, posting robust growth in net interest income
and good performance in our high margin segments – evidence of our
focus on profitability.
Notably, NII rose 14.8% year-on-year and 5.3% sequentially. Our
successful focus on high-margin loan segments along with higher
interest rates and progress on our strategic initiatives is driving
strong margins, even amid more moderate total loan growth of 2.4%.
As such, NIM gained 80 basis points YoY and 50 basis points
sequentially to 5.81%.
Growth in high-margin loans - Consumer, Middle-Market and SMEs -
was driven by resilient demand and the success of our commercial
initiatives, despite increased competition. These represent 53.9%
of our total loans, but contributed to 70% of loans' NII in the
quarter.
Strategically, we continue to boost the quality of our customer
base as we tailor products and services to their needs and focus on
innovation. We are also advancing in transforming our business
model, with an emphasis on digitalization and mobile banking. Net
new customers have grown 140%, with more than 1.9 million loyal
customers, up 26% on last year. Supported by our client-centric
approach, deposits rose by 15.5% YoY this quarter as we pursue our
goal of bringing our share of retail deposits in line with the
market average.
Overall, we remain proud of an agile and effective strategy, as
we progress on key initiatives. A strong result for the bank this
period was masked by weaker trading gains, which meant our bottom
line did not fully reflect the progress we are making across our
operations. We remain confident on the success of our strategic
transformation and remain dedicated to generating sustainable
returns, outstanding customer service and excellence in our value
proposition."
3Q17 EARNINGS CALL DIAL-IN
INFORMATION
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Date:
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Thursday, October
26th, 2017
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Time:
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12:00 p.m. (MCT);
1:00 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=126526
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Replay:
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Starting: Thursday,
October 26th, 2017 at 4:00 p.m. (US ET)
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Ending: Tuesday,
October 31st, 2017 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: 13671774
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ABOUT GRUPO FINANCIERO SANTANDER MÉXICO, S.A.B. DE C.V. (NYSE: BSMX; BMV:
SANMEX)
Grupo Financiero Santander México, S.A.B. de C.V.
(Santander México), one of Mexico's leading financial services holding
companies, provides a wide range of financial and related services,
including retail and commercial banking, securities brokerage,
financial advisory and other related investment activities.
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 September
30th, 2017, Santander México had total assets of
Ps.1,236 billion under Mexican Banking GAAP and more than 15
million customers. Headquartered in Mexico City, the Company operates 1,076
branches and 325 offices nationwide and has a total of 17,528
employees.
LEGAL DISCLAIMER
Grupo Financiero 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 Grupo Financiero Santander México's
authorization to act as a sociedad controladora de un grupo
financiero or Banco Santander México's 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.
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
nominal Mexican pesos, unless otherwise indicated. Historical
figures are not adjusted by inflation.
www.santander.com.mx
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SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.