Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| In terms of profitability, our first quarter of this year performance reflects solid growth in individuals, both in terms of credit and deposits as well as the excellent risk management that I just noted |
| All-in-all, our goal of building a much stronger franchise and becoming the best bank in customer experience for all of our customers remains our top priority |
| Innovation and market-leading digital advancements will enable us to continually enhance the value of our products and digital offerings |
| I'm pleased to share with you that we started the year with very strong results, with net income of MXN 7.6 billion, growing slightly more than 49% year-over-year and demonstrating the earnings power of our strategy |
| Total loans grew more than 5% year-on-year, with strong performance across our entire loan book |
| In fact, February was our 10th consecutive month of double digit growth in payroll loans and in credit cards |
| The healthy growth we achieved in retail loans, coupled with a reduction in our cost of risk and the effective cost controls we have maintained, generated solid net income growth, building on various initiatives to consistently deliver strong results |
| Moreover, we continue to maintain a strong balance sheet as reflected in our solid capital ratio and liquidity position well above regulatory requirements for a systemic bank of our size |
| Thanks to our solid revenue growth and strict cost controls, we also managed to improve our efficiency ratio by 644 basis points year-on-year, which stood at 40.8% at the end of the first quarter |
| We will continue executing our many growth initiatives and advancing our bank's transformation hand-in-hand with our strategy focused on further strengthening customer loyalty by increasing the digitalization of our products and operations |
| Accordingly, we achieved a return on equity of nearly 18%, 560 basis points higher than a year-ago |
| With regard to deposits, we achieved solid growth of 14.6% compared to the first quarter of last year |
| In individual loans, we had a solid increase compared to last year, mainly due to double-digit growth in credit cards, payroll and other loans |
| That was mainly due to good performance of term deposits, which grew close to 52% year-on-year, thanks to our strategy focused on increasing retail deposits for new customers as well as higher interest rates that have practically doubled in this period |
| We also reached a market share of 16.2% in auto loans, keeping us firmly in third position in the auto segment |
| This is due to strong growth in term deposits |
| The Santander Group was able to repurchase 96% of the total shares that were still outstanding, thereby increasing Banco Santander's stake in Santander Mexico from 96.2% to 99.84% |
| During the first quarter, asset quality remains at excellent levels despite the solid growth of our consumer loans |
| Our main opportunity continues to be increasing our market share in individual demand deposits, which stood at 9.8% in February, a 20 basis point decrease compared to last year |
| This results underscore our prudent risk management strategy that has been consistently executed by a risk team in coordination with all business units |
| The NPL ratio stood at 1.96%, improving 83 basis points compared to the first quarter of last year, while our cost of risk improved 79 basis points to 1.62% |
| It's noteworthy that we accomplish still in a high inflation environment |
| Have a great day |
| Before reviewing our first quarter results, I would like to inform you that the tender offer being executed by Santander Group had a very high level of participation |
| Good to hear from you |
| Thanks a lot |
| Actually, last time, I gave some words, thanking you and everybody has been very helpful to us throughout this process |
| Thanks |
| Thank you |
| Didier Mena Thank you |
| Statement |
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| On the other hand, we started to see a gradual and expected slowdown in mortgages due to higher interest rates |
| If they need to maybe convert into shares and the bank is not listed, well, that's an issue that investors should take into consideration, that's a risk |
| In the past, BBVA was not able to issue these instruments in the Central Bank when they put in place these conditions to create an incentive for banks in Mexico to list their shares, they prevented them from issuing capital securities, okay |
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