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 JUNE 30TH, 2012 (Figures in million of Mexican pesos) Financial Situation Statement as of June 2012 Assets As of June 30 th 2012, total assets of Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C (Banjercito) amounted to $45,576, showing a decrease of 2.30% ($1,703) regarding the existing assets of June of the previous fiscal year. In the second quarter of the year the assets decreased in 2.4% ($1,142) regarding December The annual decline is mainly by the following: regarding repo operations, where the institution acts as reporter which decreased in $75 (1.89%), investments in securities diminished in $4,883 (21.3%), mainly from the outflow of trust funds and mandates managed by this institution. On the second quarter of 2012, the current loan portfolio grew $1,945 regarding December of the previous fiscal year; from which $926 correspond to consumer loans and $1,019 to the placement of mortgage loans mainly to the troopers and sailoring of the Armed Forces. Furthermore, the past-due loan portfolio of the Bank showed an annual decrease equivalent to 12.96%, passing from $54 to $47; said decrease is due to the application of 103 loans qualified as level E. The Arrears Index was only 0.27% showing a reduction regarding the index reported in the same quarter of the previous fiscal year (0.39%). Página 1

2 The Bank maintains preventive estimations for $129, so at the closing of June 2012 the Past Due Portfolio Coverage Index reached 275.7%. At the closing of the second quarter of 2012 the Property, furniture and equipment increased in $266; this raise mainly obeys to the conclusion of the new Remote Site, which was reserved in the other assets item. Liabilities Total liabilities were $38,569 showing an annual decrease of 5.31%, which had its origin in the decrease of immediate demand deposits of $2,839 (31.44%) and a decrease in repo creditors of $1,331 (19.71%) mainly coming from the outflow of trust funds and mandates managed by the institution. In counterpart, sundry creditors and other payable accounts increased in 80.49% coming mainly from the rise of Letters of Credit hiring for $664 and guarantee deposits derived from the temporal import of vehicles of $220. During the December 2011 to June 2012 period, a decrease is shown on the traditional gathering of 1.1% ($325) coming from the decrease in immediate demand deposits of $1,731 (21.9%) and in counterpart the term funds raised from the general public and from special funds increased in $924 and $482, respectively. The balance of the gathering of term deposits as of June 30 th 2012 placed in $23,913, which presented an increase during the second quarter of $1,406 Página 2

3 equivalent to 6.2%, originated by the growth in the gathering of resources from the general public. Stockholders equity The stockholders equity as of June 30 th 2012 was of $7,007, showing an annual increase of $1,088 equivalent to 18.38%. Such growth is mainly due to the net income earned during the fiscal year. At the closing of the second quarter of 2012 the return on equity was 16.03% higher by 93 percentage points to that shown in the same period of the previous year (15.10%). Income Statement as of June 2012 The net income reached at the closing of the second quarter of 2012 ascended to $550, 31.68% higher than that obtained in June 2011, representing a Return on Assets (ROA) of 2.36%. The movements in the net income compared to the same period of 2011 are mainly explained by the following: 1. The financial margin increased in 23.04% ($229) caused mainly by the growth in the interest income $220, due to the increase in volume of loans granted. 2. Collected commissions raised in $181 regarding the reported in June 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 temporary import of vehicles). 3. On the other hand, the management and promotion expenses grew up $203 (33.78%); this increase is consistent with the growth 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 second quarter of the current year, loans portfolio yield raised to $591, representing a return rate of 13.47% (including opening Página 3

4 commissions for loans and adjustment for valuation of loans denominated in minimum wage and UDIS), which was higher to the one obtained during the first quarter of 2012 (13.30%). The collected interests for securities investments rose to $205, representing a weighted average yield of the quarter of 4.62% regarding the total securities portfolio. 2. In the second quarter of 2012, the opening loans commissions were $80, which increased regarding the previous quarter in $7 because of the loans granted, amount according to the fees established by the Institution. 3. Interests paid in the second quarter of 2012 were of $257, which are without a meaningful variation regarding the ones reported in the previous quarter ($256). 4. The interests in charge for repo operations during the second quarter of 2012 ascend to $70, a higher figure than the one shown during the first quarter of the current year ($64). On the other hand, the interests in favor for these kinds of operations were of $56, showing a decrease of $16 regarding the ones obtained in the first quarter of the current year. 5. Interests from interbank loans and from other entities paid during the second quarter of fiscal year 2012 were $2, showing an increase of $1 regarding the ones incurred during the first quarter of this year. 6. The Institution during the second quarter of fiscal year 2012 did not perform transactions related with debt allocation. 7. The revenue for border services reflected an accumulated flow in the second quarter of the current year of $240, highlighting the service of physical checking and history confronts for the definitive and temporary import of vehicles. This income reported an increase of $126 regarding the ones obtained in the first quarter of the current year. 8. The valuation result of securities valuation to the second quarter of the fiscal year 2012 corresponds to surplus value of $ The Institution does not perform loans on securities. 10. The Institution did not recognize in the income of the second quarter of 2012 penalties for decrease in securities value. 11. The administration and promotion expenses ascended to $423 during the second quarter of 2012, higher to that recorded in the first quarter the current fiscal year of $381. Such increase is consistent with the volume of operations of the institution. 12. At the closing of the second quarter of 2012 fiscal earnings obtained was $707, causing an income tax rate of 30% amounting to $212. Regarding the income tax and profit-sharing deferred, in the second quarter net Página 4

5 effect presented for $1 in favor, coming from the payment of profit sharing. b) Financial Situation, Liquidity and Capital Funds 1. Liquidity and Funds Sources. The Institution s external sources of liquidity are mainly the traditional gathering, classifying itself as demand deposits, saving accounts, term deposits, time deposits and gathering from the Savings and Work 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. This way, 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. 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 in capital committed. Página 5

6 c) Description of the Internal Control System of Banjercito During the second 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 of the Internal Control Duties was presented. In agreement with the Audit Committee, be submitted for consideration of the Board the ratification of the Goals and Guidelines of the Internal Control System; in the session of April 30 th On July 24 th 2012, the Audit Committee celebrated its 28 th ordinary session, in which, among other things, the Annual Report of the status that the Institutional Internal Control System 2011 holds and the Report on monitoring the Institutional Risk management process, among other things. Banjercito maintains an appropriate Internal Control System that satisfactorily 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 second quarter of 2012 is $432. 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