Mexico highlights in the fourth quarter
- Sustained growth in activity, particularly in the retail portfolio.
- Positive growth in revenue.
- Stable cost of risk.
- Closing of the sale of the Afore Bancomer in January 2013.
Industry Trends
In Mexico the financial sector has continued to show a high degree of strength, with a capital ratio that is far above the minimum required (10%). This has allowed the system to be among one of the first to adopt the Basel III regulation.
With respect to banking activity, the loan book is robust and has recorded 20 consecutive months of growth. All the portfolios have grown, and this dynamic mood is expected to continue due to the favorable macroeconomic environment. Customer fund gathering is also positive, so there are no liquidity tensions.
With respect to the exchange rate, the peso has appreciated over the year, but depreciated in the quarter, both in terms of the fixing and average rate. This means its impact on the balance sheet, activity and earnings in the area has been positive year-on-year, but negative over the quarter. Unless otherwise indicated, all comments below on percentage changes refer to constant exchange rates with the aim of providing a better understanding of the performance of the business.
Income statement
(Million euros)
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|
Mexico |
|
2012 |
Δ % |
Δ % (1) |
2011 |
Net interest income |
4,164 |
10.3 |
7.8 |
3,776 |
Net fees and commissions |
1,087 |
6.4 |
4.0 |
1,022 |
Net trading income |
218 |
(26.3) |
(27.9) |
296 |
Other income/expenses |
288 |
27.0 |
24.2 |
227 |
Gross income |
5,758 |
8.2 |
5.8 |
5,321 |
Operating costs |
(2,172) |
12.2 |
9.7 |
(1,936) |
Personnel expenses |
(912) |
11.0 |
8.5 |
(822) |
General and administrative expenses |
(1,126) |
11.6 |
9.1 |
(1,009) |
Deprecation and amortization |
(133) |
27.0 |
24.1 |
(105) |
Operating income |
3,586 |
5.9 |
3.6 |
3,385 |
Impairment on financial assets (net) |
(1,320) |
11.9 |
9.4 |
(1,180) |
Provisions (net) and other gains (losses) |
(41) |
(30.5) |
(32.1) |
(59) |
Income before tax |
2,225 |
3.7 |
1.4 |
2,146 |
Income tax |
(538) |
4.7 |
2.4 |
(513) |
Net income from ongoing operations |
1,688 |
3.4 |
1.0 |
1,633 |
Net income from discontinued operations |
136 |
69.1 |
65.4 |
81 |
Net income |
1,824 |
6.4 |
4.1 |
1,714 |
Non-controlling interests |
(3) |
20.6 |
17.9 |
(3) |
Net attributable profit |
1,821 |
6.4 |
4.0 |
1,711 |
(1) At constant exchange rates
Balance sheet
(Million euros)
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|
31-12-12 |
Δ % |
Δ % (1) |
31-12-11 |
Cash and balances with central banks |
5,968 |
8.5 |
3.2 |
5,503 |
Financial assets |
29,463 |
12.7 |
7.3 |
26,138 |
Loans and receivables |
42,058 |
12.1 |
6.7 |
37,522 |
Loans and advances to customers |
37,249 |
14.4 |
8.9 |
32,560 |
Loans and advances to credit institutions and other |
4,809 |
(3.1) |
(7.7) |
4,961 |
Tangible assets |
1,168 |
18.5 |
12.8 |
986 |
Other assets |
3,774 |
61.4 |
53.6 |
2,339 |
Total assets/Liabilities and equity |
82,432 |
13.7 |
8.3 |
72,488 |
Deposits from central banks and credit institutions |
13,927 |
33.9 |
27.4 |
10,403 |
Deposits from customers |
36,602 |
3.0 |
(1.9) |
35,524 |
Debt certificates |
3,952 |
1.6 |
(3.3) |
3,889 |
Subordinated liabilities |
4,249 |
77.1 |
68.6 |
2,399 |
Financial liabilities held for trading |
5,830 |
7.2 |
2.1 |
5,438 |
Other liabilities |
12,882 |
21.5 |
15.7 |
10,599 |
Economic capital allocated |
4,991 |
17.8 |
12.2 |
4,236 |
(1) At constant exchange rates
Significant ratios
(Percentage)
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|
Mexico |
|
31-12-12 |
30-09-12 |
31-12-11 |
Efficency ratio |
37,7 |
38,0 |
36,4 |
NPA ratio |
3,8 |
4,1 |
3,7 |
NPA coverage ratio |
114 |
107 |
120 |
Risk premium |
3,49 |
3,46 |
3,49 |
Mexico. Operating income
(Million euros at constant exchange rate)
(1) At current exchange rate: +5.9%.
Mexico. Net attributable profit
(Million euros at constant exchange rate)
(1) At current exchange rate: +6.4%.