- Total loan portfolio growth continued to outpace YoY market
performance, highlighting solid performance in consumer and credit
card loans. While loan volumes in the commercial portfolio were
driven by a double-digit pick-up in middle-market loans, meanwhile
SMEs, Corporate and Government loans remained soft.
- Total deposits continued growing at a solid pace while the Bank
carefully manages funding costs by improving funding mix by
favoring demand deposits over term deposits. Meanwhile,
contribution of individuals in total deposits represented 37.7%,
compared with 24.2% in 2016, this is the best mix the Bank has ever
had versus previous years' first quarters.
- Net income increased 55.9% YoY in 1Q22, mainly due to the solid
increase in NII, lower provisions for loan losses and expenses,
partially offset by softer fees and lower market related
income.
MEXICO CITY, April 28, 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 ending March
31st, 2022.
Banco Santander México reported net income of Ps.5,111 million
in 1Q22, representing a YoY increase of 55.9% and a QoQ decrease of
2.6%.
HIGHLIGHTS
|
|
|
|
|
|
|
|
Results (Million
pesos)
|
|
1Q22
|
4Q21
|
1Q21
|
|
%QoQ
|
%YoY
|
Net interest
income
|
|
16,416
|
16,046
|
15,585
|
|
2.3
|
5.3
|
Fee and commission,
net
|
|
4,876
|
4,760
|
4,902
|
|
2.4
|
(0.5)
|
Core
revenues
|
|
21,292
|
20,806
|
20,487
|
|
2.3
|
3.9
|
Provisions for loan
losses
|
|
3,874
|
4,289
|
7,075
|
|
(9.7)
|
(45.2)
|
Administrative and
promotional expenses
|
|
9,475
|
12,636
|
9,894
|
|
(25.0)
|
(4.2)
|
Net income
|
|
5,111
|
5,245
|
3,279
|
|
(2.6)
|
55.9
|
Net income per
share1
|
|
0.75
|
0.77
|
0.48
|
|
(2.6)
|
55.7
|
|
|
|
|
|
|
|
|
Balance Sheet Data
(Million pesos)
|
|
Mar-22
|
Dec-21
|
Mar-21
|
|
%QoQ
|
%YoY
|
Total
assets
|
|
1,734,268
|
1,639,652
|
1,748,298
|
|
5.8
|
(0.8)
|
Total
loans
|
|
770,440
|
750,966
|
713,989
|
|
2.6
|
7.9
|
Deposits
|
|
787,057
|
783,118
|
767,627
|
|
0.5
|
2.5
|
Shareholders´
equity
|
|
166,102
|
165,894
|
159,654
|
|
0.1
|
4.0
|
|
|
|
|
|
|
|
|
Key Ratios
(%)
|
|
1Q22
|
4Q21
|
1Q21
|
|
bps
QoQ
|
bps
YoY
|
Net interest
margin
|
|
4.59
|
4.46
|
4.42
|
|
13
|
17
|
Net loans to deposits
ratio
|
|
94.99
|
92.94
|
89.76
|
|
205
|
523
|
ROAE
|
|
12.32
|
12.92
|
8.24
|
|
(60)
|
408
|
ROAA
|
|
1.21
|
1.20
|
0.73
|
|
1
|
48
|
Efficiency
ratio
|
|
47.28
|
56.00
|
46.62
|
|
(872)
|
66
|
Capital
ratio
|
|
20.21
|
21.56
|
19.73
|
|
(135)
|
48
|
NPLs ratio
|
|
2.79
|
2.18
|
2.91
|
|
—
|
—
|
Cost of
Risk
|
|
2.41
|
2.90
|
3.15
|
|
(49)
|
(74)
|
Coverage
ratio
|
|
114.63
|
141.38
|
120.12
|
|
—
|
—
|
|
|
|
|
|
|
|
|
Operating
Data
|
|
Mar-22
|
Dec-21
|
Mar-21
|
|
%QoQ
|
%YoY
|
Branches
|
|
1,036
|
1,036
|
1,007
|
|
0.0
|
2.9
|
Branches and
offices2
|
|
1,345
|
1,346
|
1,352
|
|
(0.1)
|
(0.5)
|
ATMs
|
|
9,522
|
9,498
|
9,497
|
|
0.3
|
0.3
|
Customers
|
|
20,127,593
|
19,664,670
|
19,140,296
|
|
2.4
|
5.2
|
Employees
|
|
25,342
|
25,276
|
22,280
|
|
0.3
|
13.7
|
|
|
1)
|
Accumulated EPS, net
of treasury shares (compensation plan) and discontinued operations.
Calculated by using weighted number of shares.
|
2)
|
Includes cash desks
(espacios select, box select and corner select) and SMEs business
centers. Excluding brokerage house offices.
|
Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "We began the year maintaining very
strong dynamics in our core businesses along with a healthy balance
sheet and liquidity positions. Volumes were again boosted by
individual loans, which continue outpacing the market, driven by
sustained market share gains in mortgages and auto loans. In the
consumer segment, we experienced a strong recovery, especially in
credit cards. The renewed growth was mainly due to the solid
performance of our unique LikeU credit card, which is experiencing
excellent market acceptance. Additionally, in auto loans, we are
very close to become the number three player in the market, thanks
to our attractive commercial offering and the various alliances we
have with leading automakers. Bear in mind that we started from
scratch our auto loans business not that long ago. In the
commercial segment, we are beginning to see a positive trend in
loan volumes, with middle-market and government loans growing 10%
and 4% sequentially.
We continue growing deposits at a solid pace while carefully
managing funding costs by improving our mix in favor of demand over
term deposits. In line with our strategy, the contribution of
individuals has increased considerably in both categories of
deposits. Currently, the contribution of individuals represents
close to 38% of our total deposits, compared with 24% in 2016,
which is the best mix we have had in the Bank's history compared to
previous years' first quarters. At the same time, our individual
and corporate demand deposits continue expanding at high
single-digit rates, underscoring the success of our loyalty and
customer acquisition strategies as well as our continued focus on
reducing high deposit costs.
Regarding asset quality, our NPL ratio reflects the
implementation of IFRS-9 regulation in Mexico. Despite our higher risk appetite in
certain business lines, our portfolio remains healthy, thanks to
prudent risk management. Further, provisions should remain stable,
as we are not seeing any deterioration that could impact any of our
loan portfolio segments. As Mexico's improving operating environment gains
more traction, we are pointing to further improvements in asset
quality and, therefore to levels of provisions and cost of risk
more similar to pre-pandemic levels.
Looking ahead, we will continue executing our many growth
initiatives and making new investments in the bank's
transformation. We will maintain our strategy focused on
strengthening customer loyalty by increasing the digitalization of
our products and operations, mainly through innovation and
market-leading technology advancements that enable us to
significantly enhance the value of our products and digital
offerings. Our ambition to become the bank known for superior
customer experience in Mexico
remains."
VIII.1Q22 Earnings
Call Dial-In Information
|
Date:
|
Friday,
April,29th, 2022
|
Time:
|
09:00 a.m. (MCT);
10:00 a.m. (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:
|
https://viavid.webcasts.com/starthere.jsp?ei=1542851&tp_key=087f719f6e
|
Replay:
|
Starting: Friday,
April 29th, 2022 at 1:00 p.m. (US ET)
|
|
Ending: Friday, May
6th, 2022 at 11:59 p.m. (US ET)
|
|
ET Dial-in number:
1-844-512-2921 US & Canada; 1-412-317-6671 International &
Mexico Access Code: 13728962
|
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 March
31st, 2022, Banco Santander México had total
assets of Ps.1,734 billion under Mexican Banking GAAP and more than
20.1 million customers. Headquartered in Mexico City, the Company operates 1,345
branches and offices nationwide and has a total of 25,342
employees.
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.