those Hector. to and healthy families managing safe. stay Good everyone, participating hope you and good morning, are to Europe. afternoon your and you, you from Thank I of
strong year-on-year line liquidity conditions. balance continue to comps, and results, pandemic to normalize. results impact a in and Further, commercial make we reflect progress and While on as starting started in have loans, trends with significantly soft sheet maintaining sequentially strategic on provisions Loan quarter is weigh continues both wave the while mainly improved in a third volumes to our position. market priority, demand still difficult this there our our to Mexico year-over-year and
as origination with to to well, along we our conservative market maintaining market share loans perform However, top standards. mortgages government other gain continued and continue and while grow extremely loans,
has risk in macroeconomic and remains cards In our prudent. cards sequential SMEs, credit approach prudent with consumer started such segments, mid-market improving line a in we conditions, remain profitable loan grown and have as soft, loans appetite pickup and seeing credit the SME Although demand. but gradual
that half supported can difficult the their also to confident mainly gradually year loan the account year, normalized Deposits economy’s with the reflect needs compared recovery. liquidity grow as corporates have second in We’re by continue year-on-year levels. demand during comps, of
on In the to our of addition, customer deposits allowed high mix funds. has deposits. our acquisition deposit single cost on individual favoring us focus success and our improving over loyalty our liquidity demand continue our deposit high of and focus year-on-year, strategies lowering expanding Both underscoring demand digits corporate at by term and
its exposure to XX With gradually to our the down to paid from the of risk last while and cost asset it terms quality, of With of were continue the pandemic complete corporates improving a In the normalized with economic us, of this, levels. year NPLs continue declined pre level quarter a country. conditions in other corporates lowest expect its falling mentioned converging last that restructuring the on of last we May, we provisions, in are the approaching to their peak, level. In regards successfully fourth one quarter we months, restructured. has result
that in the Before X.X% June tender group, Santander own with on on company outstanding in X, that it after our a Mexico. offer. of the please quarter, the currently our approvals a note proceed announced tender to acquire moving performance Santander offer doesn’t in review voluntary regulatory the to change parent conditions receiving more of will the shares of
no to uncertain, there is approval launch offer. of the is timing the formal tender Given date
on For information pending please June release about that X. Banco issued the to press offer, Santander’s refer was
a improvement which gradual solid economic U.S., for X. demand. show performance the the The are in based charts with continuous domestic in Slide prospects GDP Moving on coupled expectations, on recovery in to
sixth the was June creation, increases. job with consecutive of employment month terms In
However, to been the point the recovered. due mobility lost COVID to falling cases in reaching Four yet out in recover XX consistently jobs has June. January date highest its after Population to to during spike have progress in mobility has lost not pandemic. of be also enough jobs been increasing
program contributing a activity, of of Although term. is to in the evolving slowdown a vaccination recovery in spike favorably contagious recent a near the post economic risk the
reference high could along de of in with behind recovery economic Central target XX of to for the year-end. points that to combination basis X% current increasing employment XXXX, by rates and X% The with growth seems range conditions, Given a in a inflation economic forecast Bank temporarily Banco Mexico’s is inflation us. indicate remain gradual the the by above rebound worst
the The decline are system cautiously turnaround have demand outlook can and the the to mainly had of well not our driven about loans, positioned the strengthens to corporates, recovery and commercial loan volumes signs remain X% forward. customers two contracting year, year-over-year. low stagnant mainly the the still see was optimistic that we comps and year-over-year. contribute to level showed at of the half On as economy, for quarters a We’re by Slide supporting you second similar difficult which X, going past
X, deposits On on have our consumer year-over-year with growth we like sequential weakened deposit loans slowing year-on-year. growing Please recovery side, a started you positive to X% basis, hand-in-hand Slide economies to to would marginal with an the where rebound. demand give only turn growth strategy. a show on to System X.X% update
as the the digital leader experience same, latest Our in while bank with line continue PagoNxt. working on leveraging clients. the attract processes best Group’s products a payments our in Mexico, bank’s the of that loyal remains In transformation the to for the become Santander market transformation, and we’re customer improving strategy, through accelerate assets technological value-added tools positioning priority bank strategic we
the channel initiative, merchant served normality of the through As acquired become Currently, number the new in but nonpresent Mexico, adapting country. developed acceptance to is Accordingly, largest expecting solutions part customers new bringing affiliations, our our of to the relaunched with our to Getnet processed of service and solutions relevant solutions merchant transactions and a are by aim increase the of and businesses. access player providing this best most year-end. new car through to in payment the we business second best-in-class in Mexico Getnet developing payment we’re to globally we the POS still second
As product an issuer of I credit we cards, launch shortly, in give which details a about moment. will more new will a
With an alliance This wallet users – pre-charged our In to will announced million their that have addition, can level financial means XX Santander new a now this access offer financial promote Samsung Samsung technology, we current a through can wallet Samsung on, ecosystem in will access digital be mobile. phones. the the and recently help use through Samsung higher of of product, old from the partnership, of the in unique achieve users cash that country. reduce to electronic wallet a which inclusion pre-charged this adoption with
be and goal offering market this mentioning to we anywhere biggest a all Santander will among phones banking insurance, addition, crucial is seller customers It as anytime share. is In of seamlessly is more via that and our wallet, mobile the worth date services, comparable of serving Digital is by such very payments, digital Samsung in becoming digital XX% than conversion with XX% bank June, this others. XX% with financing, the from up ago. been to five has with digital Progress for front more than customers clients sales as total reaching XX% the year-over-year. on in peers, expanding a Santander important Currently, bank. million customer-focused among highest sales, us, digital representing growth more of year of Mexico
is portfolio with to fueled times retain results. share showing in alliances already that secure lending, producing the Tesla, our both and alliances addition particularly These results focus being a turn May excellent achieving with among customers. recent loyal and and loans, to Suzuki, with three Honda, us business, for loans, leading the compared excellent market attract other results rapidly, together growing Nasdaq, mortgages Peugeot of we Our and we’re ago. others. These organically to other most X% by the as had and In our to are strategic automakers, year on are products close expanding potential which
around market, up the the fourth be three top months. next XX players and the trend in the continues, from within the place now up of we this sixth the ranking to X.X If XX originating months, player average among MXN expect We’re last a move monthly moving in billion.
the XX.X%. Our in year-over-year. in Hipoteca loans originators customer’s Hipoteca that mortgage XXX% of as medium-term individual having basis process. absolute These market, goal our mainly our of eliminated mortgages, redesign is The market we’re Hipoteca one performance share to growth supported strong highest mortgage XX the very help significant our by and Free, the XX top market has reflects In by in during support us of journey also increase as on the results months. achieved other which and proud the position pain products share to retail our our of was our XX% online reach the in of our Plus the grew expand natural performance of originations and This points last the excellent platform our success in result loans, the exposure. market points year-over-year the
is by individual In more demand with a more peers. line total lower deposits with XX.X%, years to contributing three the attracting our of deposits points of over funding share in to our deposits, over retail XXX closer terms to the last mix achieving This strategy increased us mix brings the of time. our to customers. of medium-term better goal line deposit in best-in-class basis cost This balanced
has cost to most of discipline corporate In the system be us pricing to has and allowed deposits on focus addition, that peers. its main the and demand lowered profitability the one of our compared banks deposits
X% solid remaining with X. portfolio comparison almost of the and and Slide by still sequentially, difficult contracted to flat system commercial reflecting in book. shown offset line Turning year-over-year, the the in base retail loans performance the Total
On commercial the activity the to XX% mortgages see the pickup from see before, are line in gradual expected would trend while a loans credit higher-margin that and comparisons in improving credit expect loan individual can our on to and asset loan remain see SME weigh you loans quality. in second an of start of the As such to loans, eye while less half loans, all environment, I consumer difficult economic and back segments, Also, macroeconomic personal year. X, cards weak. will Slide strengthens, in and mentioned which these close the as we with portfolio start cards, an on year-on-year during driven improvement as other maintaining growing on expected sound demand to now keeping by
have As not during defensive mentioned pandemic. mortgages only the proven earlier, I
XX% Our mortgage loans year-on-year grew organically. over
our as well build the as During which customer helps drive originations the products around Hipoteca for Plus product, from of loyalty. XX% quarter, came second cross-selling
streamline to digital and Our processes need mortgages helps onboarding branch. Hipoteca the been has key as Online pandemic platform any visit for eliminate during the it to
of weak performance digital second conditions. through mortgages the contrast, processed and personal quarter, affected During our credit posted demand XX% payroll by were cards, this negative platform. loans In
With the However, a quarters the we an it conditions. sequential balances macroeconomic gradual growth a have in improvement launch grew XX% usage in and anticipate the due card expect June, of left offer, coming card us a start credit seems we pandemic year-on-year. In in credit behind this recovery of impact card the forward. negative to encouraging a seeing as new we credit going the performance [ph] of
integrated and digital a customer temporary possibility This benefits annual coverage accessing for on each and card customers. the In benefits will unique in of few Let that they features, a innovative launch is by who product we credit which expectations. Mexico choose. next card, customized security insurance new zero pays the for high for and designed the experience, we me to and fees includes enhanced elaborate weeks, this our only listening have
new not digital will terms physical be security digital code experience, the have help nor In XXX% with clients, security a and of a the personal protect issued a digital numbers customers’ dynamic to our code our to security card while data. would exposing prevent card
that are customer every is cost. the market. will regard choose use to that like be on and able innovative social insurance is customers most these they other the their a services, card, will With to their to will personalization, safest responsibility card time a completely that able supporting the I so specific they personalize the And needs. aid and tailored in which it linked it personal that to to features security be organization With benefits, be features, will assistance be
a grow So value significant these forgoing and risk organically to and will of steadily customers, allowing confident management. new acquire this new we’re and in credit market offer, payments we segment our us number prudent without
for our demonstrating respectively. continue Growth in this key X. XX% customers achieving year-on-year digital Slide XX%, loyal of strategy, and to and solid Turning in area progress increases
on transactions and We have maintained our digital increasing sales. while focus conversion, digital
increase via reaching sales, for also last digital transactions. product transactions sharp a XX% had of quarter, Digital total XX% our of compared XX% year. XX% for mobile a with of total, sales in digital transactions significant of to accounted June channels monetary This increase, accounting total
clients XX% mobile the our XX over to over addition, grew channels. digital X.X million, and through campaigns by driven In months past incentives
becoming commercial year-on-year that Worth the the high X.X% a of has commercial contractions, the sequential decline corporate to second of Slide the Last and a by reflecting segment committed can half the most companies consecutive in be this signaling corporates comps of healthy face recovery entities better gradually basis. of quarter by in SME eighth loans to this of increased year credit as of X.X% was improve. companies under stronger corporates shown government that mid-market first decreased supported portfolio mid-market economic financial in the sequentially, year year-on-year, but pandemic. been caused more the contraction As quarters a we the XX%. still to Large and when the exceptionally affected and XX, conditions this grew in increased X% mentioning expect by we lines mid-market although a on uncertainty expect on turning maintained, we pandemic. notable drew Loans year-on-year XXXX. loans point see the registered as registered last loans about the decreased segment close confident significantly two year, Nevertheless, company XX% as performance contribution to are economy.
started balances and of July to have improvement have signs June fact, In some show slightly. as increased
balance decreased Total comps reflecting initially Moving on year-on-year, and last the corporates drawing continue liquidity that where the on part lines second to deposits high left credit Slide XX. sheet. their bank’s funding year, on X% of in
lower As former by shift of deposits. there demand rates mix. efforts interest X% year-over-year, quarters, type efforts favor reached our in improve to a this supported to previous that from growth was and attract deposit the time ongoing our funding between to Demand deposits due and individuals our
deposits beating of a demand able decrease. cost of efforts, reduce our these we by been the year-on-year basis markets to As result the XX have points
Although with on commercial toward supported deposits while prioritizing we’re and satisfied our of make improving bank’s our we cost deposit further mix, additional headway the continue expensive the working level reduce individual foregoing lowering result, well, to by this focused cost deposits our corporate as we strategy as certain deposits.
Turning to Slide XX.
and We have positions. liquidity maintained very strong capital
buffer regulatory Our representing ratio substantial coverage above well liquidity stands XXX% the thresholds. a at and
below net Our quarter, reflecting strong consecutive ratio to position. third loans structural liquidity our deposits the was XX% for
maturities. very We comfortable given manageable debt also our debt profile, with remain
to capitalization increased X Our XX.XX%. ratio equity XXX to points Tier our basis XX.XX%, core ratio increased while
to NIM Please contribution turn the of XX. see Slide lower which points XX, reopened, and X% deposit can by lower by our performance costs. assets and four which combination the on to above [ph] fees, the you As performance for supported to as X.XX% solid on Slide yielding reflecting combined yearly of increased a cash basis loans quarter, a fees cards, a XX% increased economy in commissions in year-on-year credit management expanded solid basis. X% insurance and with year-on-year, grew Net
resilient in into by in showing XX. a of has been the more XX% net declined the slightly income net gains during XX%, result sequentially, quarter, a this the solid extraordinary closer year-on-year year-on-year declined increase pandemic. Turning a and Taking higher look second both market-related offset business normalized in is fees. to components interest the reflecting commissions and almost how the Gross partially due last Slide operating income, year, which income to quarter
can but ratio sequentially four Slide reflecting on still rose last basis XX, year decreased you pandemic the Moving points fourth of below X.XX%. on basis to quality its the of that impact NPL our to NPL see ratio Year-on-year, asset XX remains quarter peak. points, the
have levels comps their than some reflecting grow year and XX% face of additional charge-offs as we easier making slightly quarter year-on-year made quarter, should Provisions and provisions pandemic. the NPLs the lower quarter declined in to XX% higher we the the last remain to last to current in which as loan payments had corporates sequentially forward, second Going difficulties to owing expect or of little bit we the the portfolio. we start that
cost the positively, neighborhood these to As our basis in of risk to X.X%. restructuring to XX mentioned that earlier, of levels taking and of were evolved -pandemic started X.XX%, loans the a to X.X% year-on-year decrease converge points pre
of cost stable remain we forward, quarters. downward anticipate to with a in Looking risks trend coming gradual
personnel expenses compensated driven costs, impact it inflation. increase as partially and we XX.X%. to XX, This those to mainly offset that now stands as costs expenses, the to was administrative expenses expenses related a by partially as Slide the year-on-year IT below X% remain are our rose as higher a and of stationery and in new efficiency and gross promotional administrative well related This by an Turning focused certain and in on a investments. and tools units facing. and critical personnel environment operating auto, reinforcing digitalization by is business promotional and due we of lower was supplies, Increase contraction ongoing that technology cybersecurity income IT services explained was reinforcement in all results lower at in the of deterioration combination among expenses cybersecurity, maintenance working other such by ratio expenses of in administrative on
the in a going on the improvement business dynamics optimistic ratio forward. result the will of slight We’re in that
last was been had XXX have XX.X%, of the X.X to growth mainly points basis and would Net provisions, the solid level. average Return three to cost ratio capital year, below lower equity fees as ROE basis in due on same points Slide year-on-year If year XX. income stable we straight to NII, ago Turning profitability higher. increased billion on XX% MXN discipline.
We’re to accumulating regulators payout of limit capital and XXXX earnings. to the recommendation XXXX
Q&A me challenging, experience improving now Before strategy ambition with in with environment going the still best Mexico. in becoming let for bank share in economic we remarks but into focus session, some customer our discipline, a keeping executing intact our and closing you continue
consists We continue with for that on approach we the At same well active innovation, among cost winning and and time, cross-selling quality and deposits significantly products do these individual network digitalization our of solid clients to service methodologies leveraging, digital by loyalty enhancing our and concludes growing This aggregate true satisfaction us. to new and strategic focused multi-tranche allow improving operating In of by that securing the leveraging through and is better effectively distribution enhance ever building lower remain our customers leading a offerings breath rising and attracting challenges stronger ahead pace. value opportunities processes. market us address seize the We a the our strengthening at levels. the consistent the our big of these the niche measures a remarks. tools execution and internal franchise
now please ready take to Q&A the We’re call your session. for open Operator, questions. the
