28 October 2003
- Net income was MXN1,181 million for the nine months ended 30 September 2003, compared with MXN262 million for the same period in 2002.
- Net income was MXN371 million for the quarter ended 30 September 2003, compared with MXN125 million for the same period in 2002.
- Cost:income ratio for the nine months ended 30 September 2003 was 63.7 per cent, compared to 76.4 per cent for the nine months ended 30 September 2002.
- Total capital ratio of Banco Bital was 14.7 per cent at 30 September 2003, compared to 9.9 per cent at 30 September 2002, and 11.0 per cent at 31 December 2002.
Grupo Financiero Bital (GFBital) recorded net income of MXN1,181 million for the nine months ended 30 September 2003, compared with MXN262 million reported for the nine months ended 30 September 2002. Net income for the quarter ended 30 September 2003 was MXN371 million, compared with MXN125 million reported for the same period in 2002. The improvement from the relatively weak 2002 results reflected revenue growth driven by higher customer deposits, an expanding consumer loan portfolio, strong trading results and higher fee income.
Comment by Sandy Flockhart, CEO of GFBital:
"Results to 30 September 2003 continued to exceed expectations. The growth in our core Personal Financial Services and Commercial Banking business lines remained robust. In addition, the contributions from traditionally strong HSBC business lines such as treasury, credit cards, payments and cash management enhanced GFBital's overall profitability. The existing HSBC Mexico operations were successfully merged into GFBital and have produced the business synergies expected.
"In August, we announced our intention to acquire Afore Allianz-Dresdner, a pension fund management business, which will broaden the scope of financial services offered by GFBital. We expect to close this transaction in November 2003. In early October, we completed the acquisition from ING of the 49 per cent participation of Seguros Bital we did not already own. The full integration of this insurance subsidiary into GFBital will concentrate the sales effort of bancassurance products which are already growing rapidly. These acquisitions bring with them a number of opportunities and we are excited at the prospect of offering a full range of insurance and pension products to GFBital's six million customers through our 1,400 branches and 4,500 automated teller machines.
"The capital adequacy ratio of Banco Bital has strengthened from 11.0 per cent at 31 December 2002 to 14.7 per cent at 30 September 2003. During this same period, non-performing loans have declined 46.3 per cent and the ratio of loan loss reserves to non-performing loans has improved to 127.3 per cent. The bank's capital position and overall balance sheet strength effectively positions the institution for future growth."
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