Printer Friendly

GRUPO FINANCIERO BANCOMER REPORTS 1993 3RD QUARTER RESULTS

 NEW YORK, Nov. 4 /PRNewswire/ -- Grupo Financiero Bancomer (GFB) today reported net income of $160.0 million (N.Ps 499.0 million) for the third quarter 1993, up 23.3 percent from $129.8 million (N.Ps 403.4 million) (pro forma) for the same period 1992. Earnings per ADS/GDS were $0.73, compared to $0.59 (pro forma) for the 1992 corresponding period.
 "We are pleased with the year-to-year improvement in our performance in the face of a challenging economic environment, with the benefits of slightly lower interest rates and declining inflation offset by economic deceleration and growing unemployment," said Ricardo Guajardo, chief executive officer of Grupo Financiero Bancomer. "We are confident that the strategic reorganization now underway will leave our group particularly well positioned to take advantage of the growth and profitability opportunities that a changing world provides."
 Although the negative macroeconomic environment constrained GFB's performance relative to the previous quarter, results were substantially improved from last year:
 -- Bancomer's net income grew 14.9 percent over the third quarter of 1992.
 -- Bancomer's net interest income was up 10.1 percent.
 -- Bancomer's non-interest revenue increased 73.3 percent and 61.1 percent compared to the third quarter of 1992 and the previous quarter, respectively.
 -- The earnings of GFB's non-bank subsidiaries were up 126.7 percent over the third quarter of 1992.
 GFB was formed in 1991, and as of Sept. 30, 1993 owns 99.97 percent of Bancomer, S.A., Mexico's largest retail bank. In addition to Bancomer, GFB's subsidiaries include Casa de Bolsa Bancomer, a brokerage house; Arrendadora Monterrey, a leasing company; and Almacenadora Bancomer, a bonded warehousing company.
 Beginning Aug. 24, 1993, Nacional Financiera, S.N.C. (NAFIN) included 15 percent of total GFB series "B" shares in its "Neutral Fund," thereby allowing foreign investors to acquire those shares through Certificados de Participacion Ordinaria (CPO's). Additionally, during August, GFB extended a tender offer to exchange Bancomer shares for GFB shares and removed Bancomer's listing from the Mexican Stock Exchange. With this transaction and the purchase of 785,000 shares from the bank itself, GFB increased its stake in Bancomer to 99.97 percent.
 As of Sept. 30, 1993, GFB's shareholding position in its subsidiaries became:
 Sept. 30 Jun. 30 Sept. 30
 1993 1993 1992
 Bancomer 99.97pct 99.50pct 72.72pct
 Casa de Bolsa Bancomer 99.98pct 99.96pct 98.88pct
 Arrendadora Monterrey 100.00pct 100.00pct 86.02pct
 Almacenadora Bancomer 63.81pct 63.80pct 60.92pct
 In order to consolidate its leadership as a profitable and growing financial institution, in September GFB adopted a new strategic model aimed at deeply changing the way GFB's business is perceived and organized. The model's principles are excellence in the provision of products and services, accommodation to world financial trends, organizational restructuring as Business/Product units and a new culture of growth.
 The results of GFB subsidiaries follow and correspond to each individual company's performance and do not reflect the proportion of earnings attributable to GFB. Bancomer's participation in subsidiaries' net income is included in Bancomer's net income.
 GRUPO FINANCIERO BANCOMER
 Summary Results
 (Net income, US$ millions)
 Quarter Ended Nine Months
 Sept. 30 Jun. 30 Sept. 30
 1993 1993 1992 1993 1992
 Grupo Financiero
 Bancomer(A) 160.0 175.6 129.8 528.3 505.6
 Bancomer(A) 149.2 162.4 129.8 494.4 473.5
 Arrendadora
 Bancomer(B) 8.1 11.1 9.7 31.0 27.4
 Factoraje
 Bancomer(B) 1.7 3.3 0.5 7.3 1.8
 Casa de Bolsa
 Bancomer 7.8 5.7 2.5 18.9 15.0
 Almacenadora
 Bancomer 0.4 0.4 0.6 1.4 1.6
 Arrendadora
 Monterrey 2.0 5.5 1.4 9.6 6.5
 Earnings per ADS
 (US$)(C) 0.73 0.80 0.59 2.42 2.31
 NOTES: (A) Figures for 2nd quarter 1993 and the first nine months of 1992 have been restated for comparison purposes.
 (B) Indirect subsidiaries of GFB. Earnings are included in Bancomer.
 (C) Calculated with 4,372,576,373 shares outstanding as of September 1993.
 BANCOMER RESULTS
 Bancomer reported a 15.0 percent increase in earnings for the third quarter of 1993 from the same period of 1992, with net income up from $129.8 million (N.Ps 403.7 million) to $149.2 million (N.Ps 464.8 million). The improvement reflected increases in both net operating income (9.5 percent) and participation in subsidiaries' net income (140.7 percent).
 Loan growth was low as a consequence of continuing measures to improve asset quality in a nearly stagnant economy. Loans increased 0.6 percent and 3.0 percent during the third quarter and first nine months, respectively.
 On Sept. 30, 1993, overall loans were up 14.0 percent from the comparable date in 1992. Traditional loans grew 7.7 percent, mortgage loans 55.6 percent, dollar loans 5.5 percent and rediscounted loans 0.9 percent, and consumer loans and credit card loans declined 1.5 percent and 4.5 percent, respectively.
 In order to enhance future efficiency, during the third quarter, Bancomer reduced its head count by more than 6 percent.
 NON-BANK SUBSIDIARY RESULTS
 Arrendadora Bancomer (Bancomer's leasing subsidiary) reported earnings of $8.1 million (N.Ps 25.2 million) for the third quarter 1993, a 16.5 percent decrease from $9.7 million (N.Ps 30.2 million) in same quarter 1992. This reduction in earnings derived from higher provisions for past-due interests as well as extraordinary expenses related to repossession of equipment.
 Factoraje Bancomer (Bancomer's factoring subsidiary) reported earnings of $1.7 million (N.Ps 5.4 million) for the third quarter of 1993, a 240 percent increase from $0.5 million (N.Ps 1.7 million) for the same quarter of 1992. This rise included a 69 percent growth of the loan portfolio, as market share reached 9.2 percent compared with 7.4 percent in same quarter of 1992.
 Casa de Bolsa Bancomer (GFB's brokerage subsidiary) showed earnings of $7.8 million (N.Ps 24.2 million) for the third quarter of 1993, a 212 percent increase compared to $2.5 million (N.Ps 7.8 million) in the third quarter of 1992. This improvement reflected commissions from a larger volume of stock trading and placements.
 Arrendadora Monterrey (GFB's leasing subsidiary) reported third-quarter 1993 earnings of $2.0 million (N.Ps 6.2 million) compared to third quarter 1992 earnings of $1.4 million (N.Ps 4.2 million). This 42.9 percent improvement was possible because synergy with Arrendadora Bancomer translated into reduction of salaries and employee benefits, and lower funding cost.
 Almacenadora Bancomer (GFB's warehouse bonding subsidiary) reported earnings of $0.4 million (N.Ps 1.2 million) for the third quarter of 1993, a 33.3 percent decrease from $0.6 million of the third quarter of 1992 (N.Ps 1.9 million). This reduction derives from lower interest income from securities.
 All results found in this report are in millions of U.S. dollars, converted from nominal new pesos using the following exchange rates:
 Quarter Ended Nine Months
 Free Market Sept. 30 Jun. 30 Sept. 30
 Exchange Rate 1993 1993 1992 1993 1992
 (new pesos/
 dollars)
 Period-end rate 3.1178 3.1212 3.1161 3.1178 3.1161
 Average rate 3.1171 3.1154 3.1037 3.1092 3.0929
 GRUPO FINANCIERO BANCOMER, S.A. DE C.V.
 Balance Sheet As Of Sept. 30, 1993
 ASSETS (Millions of N. P.) (Millions of Dollars)
 Current assets
 Short term investments 105.2 33.8
 Sundry debtors 0.0 0.0
 Securities purchased under
 resale agreements 0.0 0.0
 Total current assets 105.2 33.8
 Investments in subsidiaries
 Banking institution 8,368.7 2,684.1
 Goodwill 11,538.9 19,907.6 3,701.0 6,385.1
 Warehousing 87.5 28.1
 Financial leasing
 institution 159.5 51.1
 Goodwill 50.3 209.8 16.1 67.2
 Factoring company 0.2 0.1
 Broker dealer 268.6 86.2
 Goodwill 47.3 315.9 15.2 101.4
 Total investment in
 subsidiaries 20,521.0 6,581.9
 Furniture and equipment (net) 0.0 0.0
 Other assets (net) 3.2 1.0
 Total assets 20,629.4 6,616.7
 LIABILITIES
 Reserves and other
 liabilities 30.2 9.7
 Securities deliverable
 under resale agreements 0.0 0.0
 Reserves and provisions
 for sundry liabilities 20.6 6.6
 Total liabilities 50.8 16.3
 CAPITAL AND RESERVES
 Paid-in capital stock 461.8 148.1
 Additional paid-in capital,
 retained earnings
 & reserves 18,198.5 5,837.0
 Net income for
 the period 1,642.4 526.8
 Subsidiaries' revaluation
 surplus 1992 275.9 88.5
 Total stockholders
 equity 20,578.6 6,600.4
 Total liabilities &
 stockholders equity 20,629.4 6,616.7
 Income Statement
 For The Period of Jan. 1st to Sept. 30, 1993
 (Millions of N. P.) (Millions of dollars)
 Total interest income 10.2 3.3
 Other income 9.7 19.9 3.1 6.4
 Less:
 Other expense 5.2 1.7
 Income tax provision 0.3 5.5 0.1 1.8
 Income for the period 14.4 4.6
 Plus:
 Participation in subsidiaries'
 net income (GFB) 1,475.9 474.7
 Participation in subsidiaries'
 net income (Bancomer) 152.1 48.9
 Net income for the period 1,642.4 523.2
 BANCOMER, S.A.
 Balance Sheets As Of Sept. 30, 1993 And 1992
 Millions of New Pesos Millions of Dollars
 1993 1992 1993 1992
 ASSETS:
 Cash and due from banks 2,331.0 1,444.8 747.7 463.6
 Government securities 2,231.3 5,247.0 715.7 1,683.8
 Fixed return securities 375.2 387.2 120.3 124.3
 Loans:
 Tradition loans 26,010.6 24,132.2 8,342.6 7,744.3
 Consumer loans 5,040.2 5,113.4 1,616.6 1,641.0
 Credit card loans 6,789.2 7,102.5 2,177.6 2,279.3
 Mortgage loans 22,680.1 14,570.2 7,274.4 4,675.7
 US dollar loans 16,327.5 15,471.1 5,236.9 4,964.9
 Other loans 748.9 662.4 240.2 212.6
 Total gross loans 77,596.5 67,051.8 24,888.3 21,517.8
 Less:
 Allowance for loan losses 0.0 845.1 0.0 271.2
 Net loans 77,596.5 66,206.7 24,888.3 21,246.6
 Fixed assets (net) 4,178.2 2,976.6 1,340.1 955.2
 Repo's & futures 13,156.7 7,552.7 4,219.8 2,423.7
 Tourism & other equity
 investments 4,386.5 2,816.8 1,406.9 903.9
 Investments in affiliates 737.8 1,035.6 236.7 332.3
 Trading portfolio 1,158.0 1,090.9 371.4 350.1
 Other assets 4,350.0 3,233.4 1,395.2 1,037.6
 Total assets 110,501.2 91,991.7 35,442.1 29,521.1
 LIABILITIES:
 Demand deposits 7,942.8 6,056.9 2,547.6 1,943.7
 Saving deposits 3,297.8 2,671.4 1,057.7 857.3
 Time deposits-retail 21,901.4 8,383.9 7,024.6 2,690.5
 Time deposits-funds 500.0 2,602.7 160.4 835.2
 Cuenta maestra 8,823.9 8,789.9 2,830.2 2,820.8
 Funds 1,468.3 12,533.0 470.9 4,022.0
 Total local-currency
 deposits 43,934.2 41,037.8 14,091.4 13,169.5
 US dollar deposits &
 other 17,924.5 15,454.9 5,749.1 4,959.6
 Money desk funds 13,262.7 13,567.2 4,253.9 4,353.9
 Inter bank loans & other 3,260.8 1,183.0 1,045.9 379.6
 Bank bonds 1,000.0 0.0 320.7 0.0
 Subordinated debt 2,400.0 0.0 769.8 0.0
 Total interest-bearing
 liabilities 37,848.0 30,205.1 12,139.4 9,693.1
 Provisions for loan
 losses 2,115.3 930.8 678.4 298.7
 Repo's & futures 13,161.3 7,509.0 4,221.3 2,409.7
 Other deposits &
 obligations 2,944.7 3,141.0 944.5 1,008.0
 Other liabilities 2,126.7 1,761.5 682.2 565.3
 Total liabilities 102,130.2 84,585.2 32,757.2 27,144.3
 EQUITY:
 Paid in capital 46.4 46.4 14.9 14.9
 Reserves 2,760.8 2,637.1 885.5 846.3
 Surplus for revaluation 4,026.7 3,258.9 1,291.5 1,045.8
 Retained earnings 1,537.1 1,464.1 493.0 469.8
 Total stockholder's
 equity 8,371.0 7,406.5 2,684.9 2,376.8
 Total liabilities &
 equity 110,501.2 91,991.7 35,442.1 29,521.1
 BANCOMER, S.A.
 Income Statements
 Millions of New Pesos
 Periods ended Third Quarter Nine Months
 1993 1992 1993 1992
 Total interest income 4,536.6 4,200.5 14,751.1 12,126.1
 Total interest expense 2,767.8 2,601.3 9,047.8 7,252.1
 Net interest income 1,768.8 1,599.2 5,703.7 4,874.0
 Provision for loan losses 545.9 212.8 1,453.8 980.0
 Net interest after
 provision for loan
 losses 1,222.9 1,386.4 4,249.9 3,894.0
 Fund & deposit fees 424.1 256.4 980.1 863.3
 Foreign exchange
 commission 115.6 68.4 283.2 168.6
 Security gains (losses)
 on trading portfolio 159.6 (7.4) 167.0 265.5
 Other income 156.3 174.6 464.9 494.5
 Non interest income 855.6 492.0 1,895.2 1,791.9
 Expenses
 Salaries & employee
 benefits 788.8 576.7 2,234.5 1,598.2
 Operating expenses 566.3 529.5 1,661.7 1,422.4
 Depreciation & amortization 49.5 43.2 145.3 131.6
 Other expenses 63.7 15.9 241.5 229.8
 Non interest expenses 1,468.3 1,165.3 4,283.0 3,382.0
 Earnings before tax 610.2 713.1 1,862.1 2,303.9
 Provision for taxes 185.8 326.8 477.2 924.0
 Net income 424.4 386.3 1,384.9 1,379.9
 Plus:
 Participation in subsidiaries'
 net income 40.4 16.4 152.2 84.2
 Net income for the period 464.8 402.7 1,537.1 1,464.1
 Millions of Dollars
 Periods ended Third Quarter Nine Months
 1993 1992 1993 1992
 Total interest income 1,454.9 1,353.9 4,744.5 3,920.6
 Total interest expense 887.6 838.4 2,910.0 2,344.7
 Net interest income 567.3 515.2 1,834.5 1,575.9
 Provision for loan losses 175.2 68.4 467.6 316.9
 Net interest after
 provision for loan
 losses 392.1 446.8 1,366.9 1,259.0
 Fund & deposit fees 136.2 82.6 315.2 279.1
 Foreign exchange commission 37.1 22.1 91.1 54.5
 Security gains (losses) on
 trading portfolio 51.3 (2.5) 53.7 85.8
 Other income 50.1 56.3 149.5 159.9
 Non interest income 274.7 158.5 609.5 579.3
 Expenses
 Salaries & employee
 benefits 253.1 185.9 718.7 516.7
 Operating expenses 181.6 170.7 534.4 459.9
 Depreciation & amortization 15.8 13.9 46.7 42.5
 Other expenses 20.5 5.0 77.7 74.3
 Non interest expenses 471.0 375.5 1,377.5 1,093.4
 Earnings before tax 195.8 229.8 598.9 744.9
 Provision for taxes 59.6 105.4 153.5 298.6
 Net income 136.2 124.4 445.4 446.3
 Plus:
 Participation in
 subsidiaries' net income 13.0 5.4 49.0 27.2
 Net income for the period 149.2 129.8 494.4 473.5
 -0- 11/4/93
 /CONTACT: Peter McCue of Fleishman-Hillard, 212-265-9150/


CO: Grupo Financiero Bancomer ST: New York IN: FIN SU: ERN

TM-LD -- NY129 -- 1043 11/04/93 23:26 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1993
Words:2738
Previous Article:MISSION ENERGY SELLS TO MAGMA POWER INTEREST IN ITS PHILIPPINE GEOTHERMAL PLANT PROJECT
Next Article:MAGMA POWER CO. ACQUIRES MISSION ENERGY'S INTEREST IN PHILIPPINE GEOTHERMAL POWER PLANT PROJECT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters