BANCO NACIONAL DEL EJÉRCITO, FUERZA AÉREA Y ARMADA S.N.C.

Transcription

1 BANCO NACIONAL DEL EJÉRCITO, FUERZA AÉREA Y ARMADA S.N.C. Development Bank Institution OPERATIONS RESULTS AND FINANCIAL SITUATION AS OF MARCH 31ST, 2012 (Figures in millions of Mexican pesos) Financial Situation Statement as of March 2012 Assets As of March 31 st 2012, total assets of Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C (Banjercito) were $47,695, showing an increase of 8.55% ($3,757) regarding the assets of March of the previous fiscal year. In the first quarter of the year the assets grew $977 (2.1%). This annual increase was mainly motivated by the following: a) a higher volume in repo operations acting the institution as reporter which increased in 29.21%; and b) the growth of the performing loan portfolio of 26.13%, motivated by the increase in the placement of consumer and mortgage loans highlighting the mortgage loans granted to the troopers and sailoring of the Armed Forces. Concerning the observed quarter growth, this is due mainly to the increase in security investments of 23.1% originated by the increase volume of resources collected by the trusts and mandates, and the growth of the performing portfolio ($998) by consumer and home mortgage loans. The past due portfolio showed an annual increase of $8, notwithstanding the arrears index was only 0.35% showing a slight variation regarding the index reported the previous quarter (0.34%). Página 1

2 During the current annual period, the Bank has a preventive estimation for credit risk of $130, so at the closing of March 2012 the reserve covers the past due portfolio 2.26 times. On March 16 th of the present year the National Banking and Securities Commission announced the model applicable to the methodology for grading the non revolving consumer loans portfolio, which contains a probability of unfullfillment according to the associated risk to the market niche that attends this National Credit Society. Due to the application of the model for grading the non revolving consumer loans portfolio, at the closing of March 2012 exceeding reserves were obtained for said portfolio of $2.4 million, which will remain registered in a prudential manner as additional reserves for said portfolio. Liabilities Total liabilities were $40,963 showing an annual increase of $2,724 equivalent to 7.12%, showing mainly increases in time deposits ($1,312 equivalent to 5.24%) and in immediate demand deposits for $1,043 (21.80%). During the first quarter of 2012, the total of the traditional gathering increased in 5.70% ($1,730), which originated by the increase in time deposits mainly from the general public. Página 2

3 The other payable accounts item showed an annual increase of % mainly due to the increase in volume of Letters of Credit. Stockholders equity The stockholders equity as of March 31 st 2012 was of $6,732, showing an annual increase of $1,033 equivalent to 18.13%. Such growth is due to the increase in the net income of the fiscal year. At the closing of the first quarter of 2012 the return on equity was 16.66% higher in 2.85 percentage points than the shown in the same period of the previous year (13.81%). Income Statement as of March 2012 The net income reached at the closing of the first quarter of 2012 ascended to $275, higher than the obtained in March 2011, representing a Return on Assets (ROA) of 2.33%. The movements in the net income compared to the same quarter of 2011 are mainly explained by the following: 1. The financial margin increased in 28% ($131) caused mainly by the growth in the interest income ($148) due to the increase in volume of loans. 2. Collected commissions raised in $89 regarding the reported in March Their increase is due to the high volume of collected commissions in the new Border Banking Services (physical verification and history confronts for the definitive and temporal import of vehicles). 3. On the other hand the management and promotion expenses grew up $87 (30%), this increase is consistent with the raise in the Institution s transactions during the last year, as well as the costs associated to said border banking services. a) Operations Result 1. During the first quarter of the current year, loans portfolio yield raised to $551, representing a return rate of 13.30% (including opening Página 3

4 commissions for loans and adjustment for valuation of loans denominated in minimum wage and UDIS), which was lower in 0.20% to the one obtained during the same quarter of the previous year (13.50%). The collected interests for securities investments rose for $209, representing a weighted average yield of the quarter of 4.64% regarding the total securities portfolio. 2. During this quarter, the opening loans commissions were $73 ($59 in the first quarter of 2011), according to the fees established by the Institution. 3. Interests paid in the first quarter of 2012 were of $256, showing an increase of $17 (equivalent to 1.07%) regarding the ones reported in the same quarter of the previous fiscal year, mainly because of the increase in time deposits and prizes paid for repo operations. 4. The interests in charge for repo operations during the first quarter of 2012 ascended to $64, a higher figure than the one shown during the same quarter of the previous fiscal year ($55). On the other hand, the interests in favor for these kind of operations were of $73, showing a growth of $40 compared to the first quarter of the previous year, this due to a greater volume of repo operations held during the period (as reporter). 5. Interests from interbank loans and from other entities paid during the first quarter of fiscal year 2012 were $1, equal to the ones obtained in the same quarter of the previous year. 6. The Institution during the third quarter of fiscal year 2012 did not perform transactions related with debt allocation. 7. The revenue for border services reflected an accumulated flow of the first quarter of the current year of $114, highlighting the service of physical checking and historic confrontation for the definitive and temporary import of vehicles, this income reported an increase of $82 regarding the ones obtained in the first quarter of the previous year. 8. The valuation result of securities at the closing of the first quarter of the fiscal year 2012 did not have a meaningful change regarding the shown in the first quarter of the previous year. 9. The Institution does not perform loans on securities. 10. The Institution did not recognize in the income of the first quarter of 2012 penalties for decrease in securities value. 11. The administration and promotion expenses ascended to $381 during the first quarter of 2012, higher than the one obtained in the same quarter the previous fiscal year of $294. This is consistent with the increase in the volume of operations of the institution. Página 4

5 12. At the closing of the first quarter of 2012 fiscal earnings obtained was $398, causing an income tax rate of 30% representing $119. Regarding the income tax and profit-sharing deferred, in the first quarter it was posted $20 in favor, coming from loan opening commissions, profit sharing, and securities for trading. b) Financial Situation, Liquidity and Capital Funds 1. Liquidity and Funds Sources. The Institution s external sources for liquidity are mainly the traditional gathering, classifying itself as demand deposits, saving accounts, term deposits, time deposits and gathering from the Savings and Work Management Funds of the Armed Forces members, as well as check services, payment orders, letters of credit and guarantee deposits for the temporary import of vehicles, among others 2. Policies for dividend payments. The Institution does not have policies for dividend payments. 3. Policies ruling the Bank Treasury. Regarding the policies for the Treasury management, it is reported that the mentioned area has the responsibility of defining the strategy regarding the excess funds distribution, for maximizing the yields on them, within the guidelines and faculties authorized by the Treasury Committee. The Treasury mainly keeps liquidity in national currency and the main currencies needed to face the Institution s liabilities, and optimizes the use of funds in the different systems for electronic payments, with Banco de México and Indeval. All the Treasury transactions are within the risk limits established by the Board of Managing Directors through the Total Risk Management Committee. The risk profile for the institution determined by the board of managing directors is conservative. On the other hand, inside the Institution there is an Assets and Liabilities Management Committee, which responsibility is to evaluate the behavior of the financial structure of the Bank, having a profitability index on each one of the branches and of the products and services offered to the customers. Also, an important part of the Committee task is the follow up of the established goals in the Operative and Financial Program of the Institution. 4. Loans and Fiscal debt. The Institution does not have fiscal credits or debts. 5. Investments committed in Capital. The Institution does not have investments committed in capital. Página 5

6 c) Description of the Internal Control System of Banjercito During the first quarter of 2012 there were no relevant modifications in the Internal Control System of the institution, regarding the informed in previous reports. On February 21 st 2012, the Audit Committee celebrated its 26th ordinary session, in which, among other things, the Directorate General Annual Report in matters of Internal control was presented, the 2012 Annual Program of the Internal Control Body, and the 2012 Annual Work Program of the Internal Comptroller; in session 2,322 of the Board of Managing Directors celebrated on February 27 th 2012, the Audit Committee presented its 2011 annual report On April 24 th 2012 the Audit Committee celebrated its 27 th ordinary session, in which among other things the semestral Inform (October 2011-March 2012) of the Internal Control Duties was presented, and a recommendation was made to the Board of Managing Directors to preserve the Goals and Guidelines of the Internal Control System, this was approved on April 30 th Banjercito maintains an appropriate Internal Control System that satisfactoraly complies with the regulations of the financial and regulatory authorities, as well as the healthy banking practices. Also, it has an updated strong normative framework that governing the operations of the Institution and lets it meet the goals for which it was created, with annually established goals, as well as his programs. Finally, we inform that the balance of the Trust Fund for Pensions and Retirement of Banjercito Employees, at the closing of the first quarter of 2012 is $417. We the under signers mentioned below manifest under oath to say the true that, within our respective work functions, prepared the institution s information presented in this annual report, which, to our knowledge and understanding, reasonably reflects its situation. The head of the Internal audit department signs this financial information based in the results of the audits performed to date, which permitted to confirm the sufficiency of the financial reporting generation process established by the Institution s management and its capacity to generate trustable information. Página 6

7 Chairman Executive Finance VicePresident General Accounting VicePresident Internal Control Area Página 7