SANTANDER MEXICO FINANCIAL GP SAB DE CV MEXICO CITY, April 28, 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 period ending March 31, 2017.
Santander México reported net income for 1Q17 of Ps.4,520 million, representing a YoY increase of 27.7% and a QoQ decrease of 0.5%.
HIGHLIGHTS
Income Statement Data 1Q17 4Q16 1Q16 % YoY % QoQ
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Net interest income 13,434 12,950 11,700 14.8 3.7
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Fee and commission, net 3,926 3,917 3,609 8.8 0.2
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Core revenues 17,360 16,867 15,309 13.4 2.9
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Provisions for loan losses 5,134 4,768 4,709 9.0 7.7
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Administrative and promotional expenses 7,481 7,283 6,889 8.6 2.7
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Net income 4,520 4,542 3,539 27.7 (0.5)
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Net income per share(1) 0.67 2.32 0.52 28.8 (71.1)
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Balance Sheet Data 1Q17 4Q16 1Q16 % YoY % QoQ
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Total assets 1,268,528 1,374,079 1,233,013 2.9 (7.7)
Total loans 584,711 591,428 543,252 7.6 (1.1)
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Deposits 594,270 593,485 518,832 14.5 0.1
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Shareholders´s equity 114,709 109,338 117,317 (2.2) 4.9
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Key Ratios 1Q17 4Q16 1Q16 bps YoY bps QoQ
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Net interest margin 5.27% 5.12% 4.86% 41.5 15.6
Net loans to deposits ratio 95.0% 96.3% 101.0% (600.3) (125.5)
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ROAE 16.1% 16.3% 12.3% 387.6 (16.3)
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ROAA 1.4% 1.4% 1.2% 19.7 (5.2)
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Efficiency ratio 40.6% 40.4% 42.4% (180.4) 24.9
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Capital ratio 16.7% 15.7% 15.4% 132.0 99.0
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NPLs ratio 2.38% 2.48% 2.97% (59.0) (9.9)
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Cost of Risk 3.5% 3.3% 3.5% 3.9 14.4
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Coverage ratio 142.8% 135.6% 117.6% 2,518.9 716.6
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Operating Data 1Q17 4Q16 1Q16 % YoY % QoQ
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Branches and Offices(2) 1,391 1,389 1,386 0.4 0.1
ATMs 6,871 6,825 6,040 13.8 0.7
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Customers 13,918,571 13,553,013 12,746,179 9.2 2.7
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Employees 16,927 16,976 17,203 (1.6) (0.3)
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1) Accumulated EPS, net of treasury shares (compensation plan) and discontinued operations. Calculated by using weighted shares.
2) As of 1Q17 includes: 1,076 branches (including 121 branches with Select service) + 18 SME offices + 7 SME branches + 131 cash desks (including 1 cash desk with Select service) + 13 Select offices + 43 Select units + 58 Select boxes + 20 Select corner + 25
brokerage house branches
Héctor Grisi, Grupo Financiero Santander México's Executive President and CEO, commented: "We started the year in a strong position, demonstrating our ability to deliver consistent profitability, even as the macro backdrop remains uncertain.
"We remain focused on becoming a truly client-centric bank, and are proud of our sound asset quality and profitability across the board. As ever, we are committed to boosting productivity by prioritizing innovation, investment, and scaling operating efficiencies.
"We posted robust NII, up 15% year-on-year, despite more muted volume growth consistent with our focus on profitability along with stiff competition. Our initiatives to offer an attractive value proposition for Individuals and SMEs through innovative products and a client centric approach are driving strong deposit growth.
"The Santander Plus program continues to gain traction, reaching more than 1.5 million customers, 52% of which are new. Similarly, the Santander-Aeroméxico co-branded card is showing robust performance, reaching 500,000 customers, of which 34% are new to the bank. Overall, the number of net new clients has grown over 170% since May 2016, reflecting a combination of new clients, but most importantly lower attrition. Loyal and digital clients have grown 21% and 61%, respectively. In addition, we continue to launch innovative products and upgrade our transaction and operational model to enhance the customer journey and sharpen our competitive position.
"Our disciplined approach to asset quality is paying off, with our non-performing loan ratio falling to 2.38% in the quarter - a 50 bps YoY improvement consistent with our risk appetite.
"Overall, we reported a solid bottom line with net income up a 28% YoY to 4.5 billion pesos, and ROAE up 380 basis points to 16.1%. This performance underscores the resilience of Santander México's business against a volatile global backdrop, as we execute our strategic initiatives and focus on risk-weighted asset returns and efficiency. Looking forward, we are committed to ongoing investment to drive innovation and strengthen our business, maintaining a strong focus on profitability and efficiency."
1Q17 EARNINGS CALL DIAL-IN INFORMATION
Date: Friday, April 28, 2017
Time: 8:00 AM (MCT); 9:00 AM (US ET)
Dial-in Numbers: 1-877-407-4018 US & Canada 1-201-689-8471 International & Mexico
Access Code: Please ask for Santander México Earnings Call
Webcast: http://public.viavid.com/index.php?id=123678
Replay: Starting: Friday, April 28, 2017 at 12:00 pm US ET, and Wednesday, May 3, 2017 at 11:59 pm US
ET Dial-in number: 1-844-512-2921 US & Canada; 1-412-317-6671 International & Mexico Access Code: 13659094
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 March 31, 2017, Santander México had total assets of Ps.1,269 billion under Mexican Banking GAAP and more than 13.9 million customers. Headquartered in Mexico City, the Company operates 1,076 branches and 315 offices nationwide and has a total of 16,927 employees.
www.santander.com.mx
LEGAL DISCLAIMER
Grupo Financiero Santander México 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 report20F. 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 (Comisión 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.
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SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.
