MEXICO CITY, Feb. 3, 2022 /PRNewswire/ -- Banco
Santander México, S.A., Institución de Banca Múltiple, Grupo
Financiero Santander México (NYSE: BSMX; BMV: BSMX), ("Banco
Santander México" or "the Bank"), today announced financial results
for the three-month and twelve -month periods ending December 31st, 2021.
Banco Santander México reported net income of Ps.5,245 million
in 4Q21, representing a YoY decrease of 4.3% and a QoQ increase of
8.3%. On a cumulative basis, net income for 12M21 reached Ps.18,080
million, representing a 10.3% YoY decrease.
HIGHLIGHTS
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Results (Million
pesos)
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4Q21
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3Q21
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4Q20
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%QoQ
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%YoY
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12M21
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12M20
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%YoY
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Net interest
income
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16,046
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15,684
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16,272
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2.3
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(1.4)
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63,085
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65,188
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(3.2)
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Fee and commission,
net
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4,760
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4,447
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4,709
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7.0
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1.1
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18,982
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18,694
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1.5
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Core
revenues
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20,806
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20,131
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20,981
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3.4
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(0.8)
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82,067
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83,882
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(2.2)
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Provisions for loan
losses
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4,289
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4,385
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3,152
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(2.2)
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36.1
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20,817
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21,263
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(2.1)
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Administrative and
promotional expenses
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12,636
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10,750
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11,102
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17.5
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13.8
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43,235
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40,915
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5.7
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Net income
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5,245
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4,843
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5,480
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8.3
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(4.3)
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18,080
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20,154
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(10.3)
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Net income per
share1
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0.77
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0.71
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0.81
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8.3
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(4.3)
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2.66
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2.97
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(10.3)
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Balance Sheet Data
(Million pesos)
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Dec-21
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Sep-21
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Dec-20
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%QoQ
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%YoY
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Dec-21
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Dec-20
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%YoY
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Total
assets
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1,639,652
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1,669,138
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1,856,213
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(1.8)
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(11.7)
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1,639,652
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1,856,213
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(11.7)
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Total
loans
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750,966
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715,759
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702,769
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4.9
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6.9
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750,966
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702,769
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6.9
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Deposits
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783,118
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766,336
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764,444
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2.2
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2.4
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783,118
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764,444
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2.4
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Shareholders´
equity
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165,894
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165,020
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158,871
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0.5
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4.4
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165,894
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158,871
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4.4
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Key Ratios
(%)
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4Q21
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3Q21
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4Q20
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bps
QoQ
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bps
YoY
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12M21
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12M20
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bps
YoY
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Net interest
margin
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4.46
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4.64
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4.50
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(18)
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(4)
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4.51
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4.71
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(20)
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Net loans to deposits
ratio
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92.94
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90.27
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88.62
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267
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432
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92.94
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88.62
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432
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ROAE
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12.92
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11.96
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14.73
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96
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(181)
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11.13
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13.55
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(242)
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ROAA
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1.20
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1.10
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1.34
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10
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(14)
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1.03
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1.23
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(20)
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Efficiency
ratio
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56.00
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50.97
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52.06
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503
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394
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50.39
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46.06
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433
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Capital
ratio
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21.56
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21.46
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19.01
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10
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255
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21.56
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19.01
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255
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NPLs ratio
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2.18
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2.85
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3.08
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(67)
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(90)
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2.18
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3.08
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(90)
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Cost of
Risk
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2.90
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2.75
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2.89
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15
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1
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2.90
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2.89
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1
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Coverage
ratio
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141.38
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117.56
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116.87
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—
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—
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141.38
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116.87
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—
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Operating
Data
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Dec-21
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Sep-21
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Dec-20
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%QoQ
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%YoY
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Dec-21
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Dec-20
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%YoY
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Branches
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1,036
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1,039
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1,013
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(0.3)
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2.3
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1,036
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1,013
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2.3
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Branches and
offices2
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1,346
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1,350
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1,350
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(0.3)
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(0.3)
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1,346
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1,350
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(0.3)
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ATMs
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9,498
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9,564
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9,448
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(0.7)
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0.5
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9,498
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9,448
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0.5
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Customers
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19,592,102
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19,470,357
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18,707,976
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0.6
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4.7
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19,592,102
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18,707,976
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4.7
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Employees
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25,276
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24,901
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21,183
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1.5
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19.3
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25,276
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21,183
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19.3
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1)
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Accumulated EPS, net
of treasury shares (compensation plan) and discontinued operations.
Calculated by using weighted number of shares.
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2)
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Includes cash desks
(espacios select, box select and corner select) and SMEs business
centers. Excluding brokerage house offices.
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Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "During the fourth quarter,
we maintained a strong balance sheet and liquidity position. We
also started to see strengthening loan volumes, mostly boosted by
commercial loans, with corporate loans increasing nearly 18%
year-over-year while government loans grew 14%. Our individual
loans continue outpacing the market, supported by sustained market
share gains in mortgages and auto loans. In the consumer segment,
we have been seeing signs of a solid sequential recovery,
especially in credit cards, as economic activity starts to gather
momentum. The segment was also helped by effective cross-selling
within our commercial network and by promotional campaigns that we
launched throughout the year.
Our deposits continue growing at a solid pace, while our
funding mix improves as we favor demand over term deposits. In
fact, our current deposit mix, with 72% demand and 28% term, is one
of the best blends we have ever achieved. Also, it is worth
highlighting that the contribution of individuals has increased
considerably in both demand and term deposits. Currently, the
contribution of individuals in total deposits represents close to
39%. Additionally, both our individual and corporate demand
deposits are still expanding at high single-digit rates versus
fourth quarter 2020, underscoring the success of our loyalty and
customer acquisition strategies as well as our focus on lowering
funding costs even further.
NPLs maintained their downward trend, reaching levels not
seen since early 2020, reflecting our prudent risk management and
resulting in a healthier loan portfolio. As Mexico's economic activity picks up and our
operating environment gains traction, we are pointing to more
normalized levels of provisions and cost of risk, and therefore to
further improvements in asset quality.
We ended another year during which we again faced the
enormous, unpredictable and myriad challenges of the pandemic. Yet
we remained resolute, quickly adapting and continuing to support
many customers and businesses. As we enter the new year, we
continue executing our strategy to strengthen client loyalty and
further digitalize our products and operations, with the same
ambition to become the bank that provides the best customer
experience in Mexico. We also
continue implementing many other growth initiatives, making new
investments in our bank's transformation, mainly in IT and
digitalization, while seeking higher efficiency levels across
business lines. Although we made additional progress this year, we
are mindful that we must accelerate the pace of
transformation."
VIII.4Q21 Earnings Call Dial-In Information
Date:
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Friday,
February,4th, 2022
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Time:
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09:00 a.m. (MCT);
10:00 a.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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https://viavid.webcasts.com/starthere.jsp?ei=1524386&tp_key=b9f6ed27f0
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Replay:
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Starting: Friday,
February 4th, 2022 at 1:00 p.m. (US ET)
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Ending: Friday,
February 12th, 2022 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
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International &
Mexico Access Code: 13726355
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ABOUT BANCO SANTANDER MÉXICO (NYSE: BSMX; BMV:
BSMX)
Banco Santander México, S.A., Institución de Banca
Múltiple, Grupo Financiero Santander México (Banco Santander
México), one of Mexico's leading
banking institutions, provides a wide range of financial and
related services, including retail and commercial banking,
financial advisory and other related investment activities. Banco
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
31st, 2021, Banco Santander México had total
assets of Ps. 1,640 billion under Mexican Banking
GAAP and more than 19.5 million customers. Headquartered in
Mexico City, the Company operates
1,346 branches and offices nationwide and has a total of 25,276
employees.
We, the undersigned under oath to tell the truth declare that,
in the area of our corresponding functions, we prepared the
information of Banco Santander México contained in this quarterly
report, which to the best of our knowledge reasonably reflects its
situation.
INVESTOR RELATIONS CONTACT
Héctor Chávez Lopez –
Managing Director - IRO
+ 52 (55) 5269-1925
hchavez@santander.com.mx
Investor Relations
Team
investor@santander.com.mx
www.santander.com.mx
LEGAL DISCLAIMER
Banco 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 our 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. The words "believe," "may,"
"will," "aim," "estimate," "continue," "anticipate," "intend,"
"expect," "forecast" and similar words are intended to identify
forward-looking statements. You should not place undue reliance on
such statements, which speak only as of the date they were made. We
undertake no obligation to update publicly or to revise any
forward-looking statements after we distribute this presentation
because of new information, future events or other factors. In
light of the risks and uncertainties described above, the future
events and circumstances discussed herein might not occur and are
not guarantees of future 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
Mexican pesos, unless otherwise indicated. Historical figures are
not adjusted by inflation.
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SOURCE Banco Santander México, S.A.