Grupo Financiero Santander México Reports Fourth Quarter 2015 Loan Portfolio Up 17.7% YoY and Net Income of Ps.4,224 Million

- Net income growth mainly driven by core earnings

- Loan growth driven by above market YoY increases in both individual and commercial segments

- Strong loan growth achieved while maintaining focus on asset quality

Jan 29, 2016, 07:51 ET from Grupo Financiero Santander Mexico, S.A.B. de C.V.

MEXICO CITY, Jan. 29, 2016 /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- and twelve-month periods ending December 31, 2015.

Santander México reported net income for 4Q15 of Ps.4,224 million, representing YoY and QoQ increases of 10.5% and 21.9%, respectively. For 12M15, net income amounted to Ps.14,141 million, reflecting a 0.9% increase from 12M14.

HIGHLIGHTS

Income Statement Data

4Q15

3Q15

4Q14

% YoY

% QoQ

Net interest income

11,431

10,810

9,799

16.7

5.7

Fee and commission, net

3,777

3,686

3,364

12.3

2.5

Core revenues

15,208

14,496

13,163

15.5

4.9

Provisions for loan losses

4,424

4,594

3,334

32.7

(3.7)

Administrative and promotional expenses

6,437

6,426

6,059

6.2

0.2

Net income

4,224

3,464

3,824

10.5

21.9

Net income per share1

2.08

1.46

2.07

0.5

42.5

Balance Sheet Data

4Q15

3Q15

4Q14

% YoY

% QoQ

Total assets

1,184,857

1,182,882

937,384

26.4

0.2

Total loans

547,745

526,037

465,541

17.7

4.1

Deposits

516,432

492,713

459,624

12.4

4.8

Shareholders' equity

113,549

112,589

105,384

7.7

0.9

Key Ratios

4Q15

3Q15

4Q14

bps YoY

bps QoQ

Net interest margin

4.9%

4.9%

4.9%

2.7

(1.6)

Net loans to deposits ratio

102.2%

102.8%

97.6%

464.1

(58.3)

ROAE2

12.9%

12.1%

14.0%

(109.0)

78.6

ROAA

1.3%

1.2%

1.6%

(26.0)

8.5

Efficiency ratio

42.0%

42.9%

43.0%

(100.2)

(87.8)

Capital ratio

15.6%

15.4%

16.2%

(56.8)

17.0

NPLs ratio

3.3%

3.5%

3.7%

(41.8)

(15.7)

Cost of Risk

3.4%

3.4%

3.3%

8.2

(4.4)

Coverage ratio

108.2%

105.8%

97.1%

1,108.0

240.0

Operating Data

4Q15

3Q15

4Q14

% YoY

% QoQ

Branches and offices3

1,377

1,374

1,346

2.3

0.2

ATMs

5,989

5,875

5,528

8.3

1.9

Customers

12,502,204

12,327,031

11,742,797

6.5

1.4

Employees

17,205

17,068

16,428

4.7

0.8

1) Accumulated EPS, net of treasury shares (compensation plan) and discontinued operations. Calculated by using weighted shares.

2) ROAE as reported

3) As of 4Q15 includes: 1,079 branches (including 120 branches with Select service)  + 18 SME offices + 7 SME branches + 119 cash desks (including 1 cash desk with Select service) + 11 Select offices + 45 Select units + 57 Select boxes + 18 Select corner + 23 brokerage house branches

 

Héctor Grisi, Grupo Financiero Santander México's Executive President and CEO, commented, "Our fourth quarter 2015 results reflect the many strengths and opportunities we see at Santander México. Total loans grew by 18% year-on-year, exceeding market growth, while we achieved even stronger performance in consumer loans, a clear reflection of the strength of our franchise. We hold leading market shares in core segments - SMEs, middle-market and mortgages, as well as solid positions in consumer banking and credit cards. Our heightened focus on individuals also allowed us to achieve a significant increase in retail deposit growth, although we maintain more ambitious targets for our long term share in this segment."

"Despite our achievements, key profitability metrics remain below our desired levels. Since joining in December, I have been working closely with our leadership team on a thorough assessment of Santander México's operations. The bank has identified its key challenges, and we are already implementing initiatives that will enable us to attract new clients and increase customer loyalty in our retail banking operations. Our goal is to be our customers' primary bank and for this we need to become a client-centric franchise."

"While Mexico has a growing economy and favorable market dynamics, like all banks, capital is becoming a scarce and increasingly costly resource. In this context, our mandate is clear: to improve profitability. At Santander México, we are uniquely positioned to better realize the strong potential of our investment and corporate banking business, creating additional synergies with our retail operation."

"I am excited by the opportunities ahead, and confident that the operational transformation of our retail and corporate banking franchise, will ensure we achieve profitable, sustainable growth for customers and shareholders. I am fully committed to maintaining our focus on profitability, and look forward to updating you on our progress," Mr. Grisi said.

To obtain the full text of this earnings report and the 4Q15 earnings presentation, please click on the following link: http://www.santander.com.mx/ir/english/financial/quarterly.html

 

4Q15 EARNINGS CALL DIAL-IN INFORMATION

Date:                   

Friday, January 29, 2016

Time:                    

8:00 AM (MCT); 9:00 AM (US ET)

Dial-in Numbers: 

1-888-215-6982 US & Canada; 1-913-312-0845 International & Mexico

Access Code:      

4402274

Webcast:             

http://public.viavid.com/index.php?id=117826

Replay:               

Friday, January 29, 2016 at 12:00 pm US ET, and Friday, February 5, 2016 at 11:59 pm      

US ET Dial-in number:

1-877-870-5176 US & Canada; 1-858-384-5517 International & Mexico Access Code: 4402274

 

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 December 31, 2015, Santander México had total assets of Ps.1,185 billion under Mexican Banking GAAP and more than 12 million customers. Headquartered in Mexico City, the Company operates 1,079 branches and 298 offices nationwide and has a total of 17,205 employees.

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.

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