Welcome!

News Feed Item

Grupo Financiero Santander Mexico Reports Fourth Quarter 2013 Net Income of Ps.6,134 Million

- Loan portfolio up 12.6% YoY with increases of 26.2% in SMEs, 7.4% in credit cards, 10.1% in consumer loans and 28.0% in mortgages including the acquisition of ING's mortgage business (now Santander Vivienda)

MEXICO CITY, Jan. 30, 2014 /PRNewswire/ -- Grupo Financiero Santander Mexico, S.A.B. de C.V., (NYSE: BSMX; BMV: SANMEX), ("Santander Mexico"), one of the leading financial groups in the Mexican financial system, today announced financial results for the three- and twelve-month periods ending December 31, 2013.

Comparable net income in 4Q13 decreased 27.0% YoY to Ps.3,114 million. Comparable 4Q13 results eliminate the following items: i) a Ps.1,927 million net gain after taxes resulting from the divestiture of the asset management business, ii) a Ps.1,074 million benefit from advanced tax credits, iii) an extraordinary net benefit of Ps.199 million before taxes related to the mandatory regulatory change in employee profit sharing (EPS) future payments occurred in 3Q13 and iv) branch expansion expenses before taxes of Ps.171 million.  Additionally, comparable 4Q12 results reflect Ps.1,368 million before taxes adjusted downward which include: an adjustment to be consistent with the accounting methodology adopted in 2013 to normalize expenses throughout the year, certain provisions, write-offs and administrative and promotional expenses. Reported net income for the quarter was Ps.6,134 million, representing YoY and QoQ increases of 85.3% and 4.3%, respectively.

Marcos Martinez, Executive President and CEO, commented, "We reported a strong performance in loan and deposit growth this quarter, ahead of industry growth rates. This good performance came about even as we continue to face an environment of lower growth."

"We expanded our total loan portfolio by 13% YoY this quarter, reflecting solid organic growth as well as the positive contribution from the November 2013 acquisition of ING's mortgage business, which solidifies our number two ranking in this attractive segment of the market. Among our core products, SME loans and mortgages grew YoY by 26% and 28%, respectively, well above the Mexican financial system growth rates during the period. Credit Cards and Consumer loans rose 7% and 10%, respectively, reflecting a conservative strategy to prioritize asset quality. Furthermore, we increased our deposit base by 12%, further supporting our liquidity profile."

"Net interest income for the quarter increased 6.5% YoY, with net interest margin of 5.25%, reflecting core business growth and lower cost of funding. At the same time, we remained on track with our branch expansion plan opening a total of 37 new branches during this quarter, for a total of 90 branches since the start of this process while maintaining tight cost controls across the organization. In summary, against a backdrop of a challenging economic environment, we closed 2013 in a very solid position as one of the most efficient and profitable franchises in the country."

"Also, several important events during the quarter improved our financial position. Among these, we divested our equity in the asset management business and entered into strategic agreements to continue to distribute these mutual funds to our clients. We also completed the optimization of our capital structure which has allowed us to reduce our cost of capital and increase return on equity, all while maintaining industry-leading capitalization levels, well above minimum regulatory capitalization requirements. As part of this strategy, we paid a Ps.16.9 billion, or U.S.$1.3 billion, cash dividend to our shareholders during the quarter. At the same time, in December 2013 we issued U.S.$1.3 billion in subordinated notes that comply with capital requirements under Basel III for Tier 2 capital, the first of their kind in Latin America."

Mr. Martinez concluded, "Looking ahead, macro and financial sector fundamentals in Mexico remain strong, despite the sharper than anticipated economic slowdown last year. We expect to see a recovery in public and private investment in 2014, driven by public spending as well as the infrastructure spending program. The recent approval of the energy, labour, financial and fiscal reforms should enhance economic growth in the following years, positively impacting Mexico's financial sector."

 

Grupo Financiero Santander Mexico







Highlights








4Q13  

3Q13   


4Q12  


   YoY 

Income Statement Data







Net interest income

9,384

9,111


8,812


6.5%

Fee and commission, net

3,310

3,301


3,227


2.6%

Core revenues

12,694

12,412


12,039


5.4%

Provisions for loan losses

3,598

3,102


2,948


22.0%

Administrative and promotional expenses

5,730

2,737


5,996


-4.4%

Net income

6,134

5,882


3,310


85.3%

Net income per share1

2.80

2.18


2.61


7.3%

Balance Sheet Data







Total loans

394,932

378,795


350,683


12.6%

Deposits

404,668

389,524


362,452


11.6%

Shareholders´s equity

94,701

100,494


97,827


-3.2%








Key Ratios






bps

Net interest margin

5.25%

5.18%


5.03%


22

Net loans to deposits ratio

93.6%

93.2%


93.6%


2.7

ROAE2

21.7%

19.8%


19.1%


255.4

ROAA

2.7%

2.5%


2.4%


26.3

Efficiency ratio

35.5%

33.0%


39.5%


(396.8)

Capital ratio

15.9%

15.7%


14.8%


113.0

NPLs ratio

3.56%

2.84%


1.74%


181.8

Coverage ratio

115.5%

146.6%


190.1%


(7,453.8)

Operating Data






%

Branches3

1,258

1,229


1,170


7.5%

ATMs

5,264

5,209


4,946


6.4%

Customers

10,512,051

10,586,497


9,965,356


5.5%

Employees

14,169

13,883


13,385


5.9%








1) Treasury Shares and discontinued operations are not included






2) ROAE as reported

3) As of 4Q13 includes: 1,018 branches + 121 cash desks + 3 select offices + 50 select units + 42 select boxes + 24 brokerage house branches

 

To obtain the full text of this earnings report and the 4Q13 earnings presentation, please click on the following link: http://www.santander.com.mx/ir/english/financial/quarterly.html

4Q13 EARNINGS CALL DIAL-IN INFORMATION

Date:  

Friday, January 31, 2014

Time:

10 AM (MCT); 11 AM (US ET)

Dial-in number:

1-877-870-5176; 1-913-312-1507 International & Mexico

Access Code:

3531096

Webcast:

https://viavid.webcasts.com/starthere.jsp?ei=1028405

Replay:

Starting Friday, January 31, 2014 at 2 PM US ET, and ending on Friday, February 7, 2014 at 11:59pm US ET


Dial-in number: 1-877-870-5176 US & Canada; 1-858-384-5517 International & Mexico


Access Code: 3531096

ABOUT GRUPO FINANCIERO SANTANDER MEXICO, S.A.B. DE C.V. (NYSE: BSMX; BMV: SANMEX)

Grupo Financiero Santander Mexico, S.A.B. de C.V. (Santander Mexico), 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 Mexico 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 31, 2013, Santander Mexico had total assets of Ps.821.8 billion under Mexican GAAP and more than 10.5 million customers. Headquartered in Mexico City, the Company operates 1,018 branches and 240 offices nationwide and has a total of 14,169 employees.

LEGAL DISCLAIMER

Grupo Financiero Santander Mexico cautions that this report may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may be found in various places throughout this report 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; our focus on strategic businesses; our compound annual growth rate; our risk, efficiency and profitability targets; financing plans; competition; impact of regulation; 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; 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, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: 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 Mexico); 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; 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 allowances for loans and other losses; increased default by borrowers; 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; and certain other factors indicated in our  annual report 20F. 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 report 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 (Comision Nacional Bancaria y de Valores) for credit institutions, as amended (Mexican Banking GAAP). All figures presented are in nominal terms. Historical figures are not adjusted for inflation.

SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...