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    NEW YORK, Aug. 5 /PRNewswire/ -- Grupo Financiero Bancomer (GFB) today reported net income for the second quarter 1993 of $158.4 million (NPs 493.4 million), down 13.9 percent from $184.0 million (NPs 571.4 million) (pro forma) for the same period 1992.  Earnings per ADS/GDS were $0.71, compared to $0.82 (pro forma) for the 1992 corresponding period.
    According to Ricardo Guajardo, chief executive officer of Grupo Financiero Bancomer, "GFB's second quarter results were affected by the contractive environment of Mexico's continued economic slow-down.  This caused lower growth for Bancomer, S.A., GFB's main subsidiary.  The persistence of high real interest rates, due to a less dynamic account surplus and a tighter monetary policy, resulted in a contraction of private spending and imports.  However, it is important to point out that in June Mexico's annual inflation rate came down to 9.86 percent, the lowest rate since 1972."
    Highlights of GFB's second quarter results include:
    -- Bancomer's net interest income grew 20 percent over the second quarter of 1992.
    -- The earnings of Bancomer's two main subsidiaries were up 61.8 percent over the second quarter of 1992.
    -- The earnings of GFB's non-bank subsidiaries were up 27.5 percent over the second quarter of 1992.
    GFB was formed in 1991, and as of June 30, 1993 owns 99.50 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.
    In its January-February 1993 issue, Latin Finance magazine rated Grupo Financiero Bancomer as the ADR issue of the year for 1992 and in an independent survey among bankers, securities analysts and fund managers, Euromoney rated GFB as the bast-managed financial institution in Latin America.
    During this quarter, GFB reached an agreement with the Mexican government to exchange GFB newly issued "L" shares for the Bancomer shares the government held, and continued acquiring minority interest in its direct subsidiaries.  As of June 30, 1993, the outstanding GFB shares were 4,492,605,544 and the corresponding share holding position became:
                                 June 1993              June 1992
    Bancomer                   99.50 percent          64.78 percent
    Casa de Bolsa Bancomer     99.96 percent          97.67 percent
    Arrendadora Monterrey     100.00 percent          86.03 percent
    Almacenadora Bancomer      63.80 percent          60.92 percent
    Results of GFB subsidiaries follow and correspond to each individual company's performance and do not reflect the proportion of earnings attributable to GFB.
                          SUMMARY RESULTS
                              Quarter Ended             First Semester
                        6/30/93   3/31/93  6/30/92     1993        1992
    Grupo Financiero
     Bancomer(a)         158.4     172.4    184.0      330.8       352.4
    Bancomer             145.8     163.4    163.8      309.2       322.0
     Bancomer(b)          11.1      11.8      8.6       22.9        17.7
     Bancomer(b)           3.3       2.3      0.3        5.6         1.3
    Casa de Bolsa
     Bancomer              5.7       5.4      6.0       11.1        12.5
     Bancomer              0.4       0.6      0.4        1.0         1.0
     Monterrey             5.5       2.1      2.8        7.6         5.1
    Earnings per
     ADS (US$)(c)         0.71      0.77     0.82       1.47        1.67
    (a) Figures for first quarter 1993 and first semester 1992 have been
        restated for comparison purposes.
    (b) Indirect subsidiaries of GFB.  Earnings are not consolidated in
        Bancomer or GFB.
    (c) Calculated with 4,492,605,544 outstanding shares as of
        June 1993.
    Bancomer Results
    Bancomer reported an 11 percent decrease in earnings for the second quarter of 1993 versus the same period of 1992, with net income down from $163.8 million (NPs 508.1 million) to $145.8 million (NPs 455.0 million).
    Loan growth continued to be moderate, mainly to accommodate the weakening of the economy and deepen the ongoing comprehensive measures towards the improvement of asset quality.  Loans increased 2.4 percent versus the end of 1992.
    Relative to the equivalent date of 1992, by June 30, 1993 traditional loans grew 11.1 percent, consumer loans 17.4 percent, credit card loans 3.5 percent, mortgage loans 76.4 percent, dollar loans 7.2 percent and rediscounted loans 8.5 percent.  The overall annual growth was 20.9 percent.
    During the second quarter, net interest margin was 8.30 percent, up 0.55 of a percentage point from the same quarter of last year, and 0.02 from the whole 1992.  Relative to the first quarter of 1993, net interest margin decreased due to lower interest rates for low-risk, high-volume commercial customers, and a decrease of the reference interest rate for consumer and mortgage loan pricing.
    In order to enhance future efficiency, in April Bancomer reduced its number of employees by approximately 10 percent.
    Non-Bank Subsidiary Results
    Arrendadora Bancomer (Bancomer's leasing subsidiary) reported earnings of $11.1 million (NPs 34.7 million) for the second quarter 1993, an increase of 29.1 percent from $8.6 million (Nps 26.4 million) of same quarter 1992.  This increase in earnings resulted form a 14.1 percent growth in credit between both periods, and favorable funding cost (e.g. three year CPI-indexed Pagare Financiero, placed on April 30, 1992).
    Factoraje Bancomer (Bancomer's factoring subsidiary) reported earnings of $3.3 million (NPs 10.2 million) for the second quarter 1993, an increase of 1000 percent compared to $0.3 million (NPs 0.7 million) for the same quarter 1992.  This rise reflected an extraordinary provision for credit losses in 1992 as well as lower funding cost.
    Casa de Bolsa Bancomer (GFB's brokerage subsidiary) showed earnings of $5.7 million (NPs 17.7 million) for the second quarter of 1992, a decline of 5.0 percent compared to $6.0 million (NPs 19.0 million). This reduction was due to lower volume in repo and stock operations.
    Arrendadora Monterrey (GFB's other leasing subsidiary) reported second quarter of 1993 earnings of $5.5 million (NPs 17.2 million) compared with 1992 period of $2.8 million (NPs 9.0 million) an increase of 96.43 percent.  This was possible because of synergies with Arrendadora Bancomer, through reduction of operating expenses related to salaries and employee benefits.
    Almacenadora Bancomer (GFB's bonded warehousing subsidiary) reported earnings of $0.4 million (NPs 1.3 million for the second quarter of 1993, with a 3.4 percent increase over earnings of the second quarter of 1992 for $0.4 million (NPs 1.3 million).

Free market exchange rate (pesos/dollars)
                            Quarter                   First Semester
                   6/30/93     3/31/93    6/30/92     1993       1992
    Period-end rate  3.1212    3.0976     3.1225     3.1212    3.1225
    Average rate     3.1154    3.0951     3.1050     3.1052    3.0875
    -0-             08/05/93
    CONTACT:  Dan Wilhelm or Peter McCue of Fleishman-Hillard for Grupo Financiero Bancomer, 212-265-9150 CO:  GRUPO FINANCIERO BANCOMER IN:  FIN SU:  ERN ST:  NY

-- NY085 -- X368 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993

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