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
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...