to Hector. encouraging the I'm everyone, morning, you, good of we and Europe. year. Thank participating you results from pleased afternoon that Good share start to those have to
the expand with a in private us evolved high-risk appetite operating helping environment our strong first performance, business, sound improved first pace. loan dynamics in quality, quarter. That very economic underlying are a with strong while now healthier reflects The also contributing quarter in portfolio coupled our consumption we pace core asset at to our
mortgages experiencing continue especially excellent LikeU is clients. loans, of other business well the loans. network, positioning the consumer, with recovery, confidence in as commercial growth market been experienced the due promotional gains is as sustained supported we in card, In the On the acceptance, have by good we market, credit loans. our in commercial soft strong efforts share keep reflected credit was market campaigns which In hand, growth a renewed subdued, our performance among we and coupled product of remains other which individual to outpacing other our The cards. within making unique this to
Additionally, we're three in our close reaching the to the in commercial auto various the position alliances with loans, have offering thanks very number we attractive and to market, automakers.
goal we this addition, our years our natural share which In business couple market ago. achieved when of started have XX%, a of we was
pace, the XX% This Currently, to carefully success seeing remain loan higher-risk impact our of of could are NPLs our risk the prudent Despite loyalty Mexico. continued to Further, In of to by the strategies, contribution have reflect the terms increased not quarters. business healthy, of meet With term of solid management. while XXXX. deposits deposits, same worth asset highlighting costs favor our At demand in time, contribution we portfolio well segments. any we had continue as in our considerably ever represents deposits. managing of high regard has our stable as individuals of improving best of is compared a appetite costs. our in our individuals funding mix IFRS individual reducing total categories deposits. we deposits demand the underscoring close the rates on each at with and customer previous in corporate that over continue growing XX%, It due that single-digit as expanding deterioration in also versus implementation both and is certain deposits high deposit first our years year, X lines, should our in quality, remains at portfolio provisions acquisition any focus
year last strong a shows quarter provisions. portfolio to of the strategies normalized benefits raise with and volumes, As ROE for individual in have profitability, along mainly our relative the from performance implemented we first to
during profitability the maintained economy position. expect a for the capital Slide outlook expansion. strong Also, terms The a we solid in in forward, and has and quarter, charts Going four, GDP reflected globally balance we continued on ratio show liquidity Also growth XXXX. raise. in the inflation challenging nationally sheet, our Mexican of as to
other that in Although slower its than inflation fuel price to is Mexico, our of countries policy. due
in Additionally, to there of monetary tightening been an response inflation. policy has earlier higher
consumption demand in which demand strengthen. hikes mainly by corporates' clients, continue According jobs. of than pre-pandemic to solid exceeding better more soft. turn increased improvements Security, volumes continuing years, deposits in the Given give to been that indicators support Social on the have growth where by X% the private investments conditions, corporate On despite well year-on-year. contribute January been the lower past are this the most to recovering which with demand rebound to you System permanent industrial continued X% been strong to business year-end. an have Institute in first to That both Macro I deposits said, strategy. growth, offset whose than registered five, nearly consumer components than contrast, their X%, year-over-year. to By additional levels levels, still increasing driven Slide loans, six, we have in our with by you to due year-over-year, Please we're loan X% our like and loan partially more update growing would demand expect loan XXX,XXX is lagging which confidence. activity customers, of of economic by our XX% more positioned whose growth system current increasing Mexican XXXX, improve jobs The were has also shown and X.XX% performance, were over to quarter, rate reaching individual five starting growth gradually. economy's see Slide highest new also was pandemic the both roughly can
out attract to in digital in Mexico's services products financial accelerate time, we technological like and Leveraging same as leader customer priority that the positioning continue would our market a loyal the latest the during and we retain expand continue to the XX.X%. our best transformation. At business initial processes experience main reach to With and XXX to additional a achieved mind, clients. that market strategic is the the XX% in our I In we bank point Our improving to first sector. of natural provide reaching the value-added which milestones tools in loans, rapidly have of of basis quarter our that goal, share XX-months we gaining was year. market to other XX% means some during last achieved share January. This points
market. this aim move will By third fueled to players single one this growth, maintaining quarter, of to we for These offerings by becoming and more. of pace we pre-approval of with minutes. place, been proud have our very are us in we in leading our Although up the in top in platform, next accomplishment, and the the automakers allowing by insurance Mexico Super Auto a results provide alliances integrates commercial which Santander online position
announced preferential in Credit market is who recovery directly sell sales and a a available making ones we financial Mexico, is from services with includes financing. our a drive convenient a auto offer with increase that which is more more we is for exclusive ago. tech customer marketplace Further, we the in why in way one to customer up sales an market individuals, collaborating conditions. quarter, trend. Furthering both faster another than emphasizing this bank us, enhance scheme priority, a buy important alliance investing continues a unique into from Mexico other Caranty our which to to a that Caranty, clients with a new for technology. bigger total X and pre-owned through Fintechs or products a and and transactions. to more Caranty in financing introduce progress sales, wish car the During and are and continue to platform functionalities, the offer, on in now representing individual Caranty's experience, utilization own of very The companies secure With Credit. of is way this This XX% and tools XX% remains year clients non-clients, that digital and times our with digital new have front new This Santander engagement
million clients mortgages, of as the our Free, the our of in the as strong top well as of customer's performance Hipoteca has March, of increasing one in originators significant had process. our and and approval points pain the year-on-year. In XX% redesign journey. eliminated reflects digital mortgage our X.X and platform success the The strong as also Online position products, support Hipoteca We Mexico. Hipoteca results redesign These application Plus
property mortgage launched product product announce a recognize our range of products, and called fixed which covers interest up the as Integral. Hipoteca are be nine This our variable. Hipoteca income rate new part we expanding customers first addition, that the offers pleased well mortgage of total new of just to for of total In of will Integral XX.X%, to to as insurance an we insurance, both property value the unemployment families months. of and the as
and launch are in keep this we we offer the segment. With new of attractive that will gaining these share confident market
of their with the tailor the in diminished short-term. will my it innovative card each be basis market. couple we jump of that to pace, in XX months remarks. market. as place in LikeU, this and mentioned according If digital we can points the one and individual customer, ago, It card we preferences. for beginning was to keep January, the the fact, This of the is to at second the by the XXX% gap of credit player any most type A second secure In card of have I allowing we launched the born designed new the
and while is grow focusing the Also our tap asset portfolio account the own to of at Our with to we XXX,XXX will us launch, one acceptance credit card that quality. holders XX% satisfied this Currently, card have and double Since our and for expectations. have issued card market's over allow strong of open year, cards, goal of sound activated portfolio. far. we market health purchase. their with register acquisition, exceeding its strategies the so into than the results XX% profitability with We're LikeU least XXXX the the more LikeU on
Santander technology. the Mexico, we us secure system within and Visa or This that have two the and second by smart directly card, allowed went time, transport moving initiative payment. impact position services, is that in efficient, two of four Conduent from On that It for in one in to just consecutive sector. number and debit of also innovation. top financial a their the number the same implemented even accepts the the Mexico public the first Platinum security Americas, the that the the resulting scaling smartphone focused with at Fintech number a proud Mobility providing received card, in GetNet digital direction among to for GetNet's advancing a well with of place Award this in share social Card payments, inclusion watches. and are is payments has promote the with GetNet helping is we by customer product transactions time. we you since significant We're that milestone with Innovation ourselves for as financial has it and where same pillars work this affiliations, to years. We're in community terms of Another POS Metrobus, innovations. type City unprecedented recognition. terminals modernization as our in focus replenish very grateful occasion, the strategy contactless jointly fourth from are the transportation right credit higher community infrastructure and players recognized allow can developed the confirms Users modern payments market and on are
in As part to Tuiio, customers us model are more comprises generally low-income support economy products we of The financial XXX,XXX The to entrepreneurs, by our of mission formal our branches, XX the are formal excluded financial inclusion, enabling services sectors majority promote customers. Tuiio and Mexico. to and currently are not support than of directly women who customer financial institutions. part through offer our low-income who
access customers account savings In an tools. have to by mobile addition, online agents offering is users these that opened online both remotely and banking
of support couldn't prevention and helping of doctors go medical to positive conditions, glad dentists new the culture employees. XX% the that the our our they to to Tuiio to to launched I'm loans, clients customer XX% access offers reference I client's have specialist facilitating business that able to that increased number have also share and thanks laboratories. of been in have like doctors, Also social and our before, would and to point to clients to their impact out XX% We improve grown these contribute of services
Our goal properly have need tools that society the help decisions ensuring to their they making their firmly and improve Mexican families, information well-being. in economic firm lies resources they and supporting manage and
continue processes, drive ESG we of as the will performance on to internal the policies and part progress remain further our We environmental mission. and integrating as the operationally front, making committed criteria, social
taking where are make and in generate Santander Mexico, level. we means ethical that present, account environmental For to an companies being the sustainable them progress at social economic, the profitable people order and continuous communities into up, and
it along reflects increased and appetite X% segments, and loan our consumer highlighting outpacing efforts to mortgage posting solid for performance our increase performance individuals commercial worth gaining year-on-year, Turning loans. our credit to consecutive have system to This continue Slide and of in is we other both a Total almost that in been growth. the seven. months. loans these mention loans higher-risk card and Also, two with sequential in market driving X%, share
commercial the than rate that demand are all, loan, the did on segments, which XX% annual are single-digits in and On coupled in to which the sound a growing strong asset All XXXX seeing strong to continue solid is expect sequential support On increasing are faster while segments, in with supporting rate, and individuals. fourth entities we front sustainable other and with at continue close Slide by should loans demand growth. expansion, upturn loans grow low corporates cards financial higher an interest double-digits, upturn Mortgages loans to low to margin you show maintaining low can and an quarter that mid-markets government together not while year-on-year, improving growing and credit eight, see growing year-on-year. margin individual quality. with a of starting the since higher-yielding also
organically. a continues Our solid mortgage portfolio expanding year-on-year of year-on-year XX% base on and XX%
from quarter, product, of our cross-selling of XX% loyalty. helps well other came build which originations around as the drive During Hipoteca products, as also customer Plus
acceptance with and Also LikeU was recovered total product. of than month March that sales from productivity our cards. best latest comes time, card have terms rhythms is a to same is a mentioning in strong more improvement Currently, see expanding credit billing starting times, both positive the be worth of and much credit will we resulting and base. allowing Online, cards, in mortgages to X% Hipoteca during terms credit XX% users more billing, the are encouraging performance quarter-over-quarter year-on-year. LikeU. efficient to this digitally, driven process completely At and faster launch of payment through been X% experience. better This card by the addition, Through new number of in response and XX% to In significant increasing signs in able all a our XX% XX% we offering, confident us month-over-month quarter of in and acquire we growth customer our value it our we're this within of year-on-year. we credit Thanks product, customer
business positioned we're itself growth. the credit organically us market year, this steadily in open Payroll good this player launch converging as a be management. prudent without continues do showing a keep from Consumer more performance pre-pandemic top value also had years, has largest and so scratch. the from business and rates. almost I performance, auto expect second allowing four MXNXX expecting by Today, billion. By par a gradually year-on-year, vein strong our strong competitors sequentially said we and Santander Products, the this next loans a the growth than half In X% building line to increasing of has in In compromising of with quarter just and to X% card to on maintaining three earlier. risk this addition, within In it to same growing
active the ratio clients year. of of nine, transactions years. past this evolution maintained representing top environment, now Turning our we highly among expansion of ratio and for compared changes also XX% ratio succeed of with The stood competitive adapt with In and improvement services, to aim achieving to sales, this XX%. year-on-year the positive this our around grow, be breadth and at have clients. quarter on solid and behavior, conversion, of This given of customers across customer last The in our continues, Slide XX% digital and and environment. In loyal digital consistent focus the to we clearly the in increasing while XX% reflects same growth has as respectively. clients, the and to X% our mind agility our continues loyal products trends throughout XXXX, -- these of in new digital to consumer been
During a XX% Digital a monetary with sales of transactions of digital via the XX% substantial year maintained sales, an digital from a for which total for increase, product mobile also upward of XX% year XX% up quarter, XX% transactions, total channels trend, slightly total, to accounting transactions ago. ago. compared accounted is our
grew million, clients we to campaigns In digital the X.X incentives by past through and over offer XX% addition, channels. promotional almost over mobile year our driven
Slide shown mid-market companies X.X% double-digit are grew As in demand. with XX, starting types loan XX.X% on a year-on-year. loans, loans to pickup driven commercial increased of active more by be which by These year-on-year,
the weak year-on-year, quarter, a the X.X% sequential but year-on-year X.X% increase, they remaining X.X% of sequential a affected soft basis. current on by sequentially decrease had economic basis. to peak. increased remain a financial corporate entities During grew loans fourth Loans SME although a following government had loans flat on conditions, quarter XX.X% and
Moving deposits on year-on-year sequentially. increased X.X% XX, total on and to X.X% Slide funding
demand deposits, the total best of have and time As XX% This decreased is increasing drop we individuals foregoing in of by continuing corporate as due previous XX.X% Conversely, year-on-year, by had. mixes campaigns. deposits. deposits quarters, in the of driven ever X% corporate our deposits representing supported performance one of promotional Demand good year-on-year to X% deposits deposits. to year-on-year, our a we deposits certain X.X% from mainly commercial the expensive lower increased continue deposits cost were
to by basis a XXX the have the points we of deposits able cost been more reduce As decrease. our demand result, year-on-year, than market's
one our additional individual working deposit our we improving costs continue to make further also prioritizes toward mix, deposits. as We headway reduce funding that
XX% and individuals stand in result the a years our five deposit demand XX% deposits. this contribution XX%, increased individuals and strategy, respectively our deposits. total As last during of term at from considerably up total in both of and have together make They
Slide have capital very we XX, positions. to strong Turning liquidity maintained and
Our liquidity coverage buffer substantial and the at a stands regulatory threshold. ratio far representing XXX%, still above
core requirement equity minimum XX.XX% capitalization Our X significantly ratios and Tier XXst, and ours. established important of financial respectively, as are for systemically March like the institutions above XX.XX%
net In fact, the XX% quarter retail quarters CETX in of is consecutive for above maintain core a this of loans our as third our main levels of capitalization. terms sound a of quarter. management Liquidity position ratio we components one with activity to the XX% bank. and been deposit funding have above is six consecutive total XX% for ratio We of
we efficient prudent of a liquidity source base business diversified secure an profile. maturity funds support and strong match our alternatives and markets requirements, profitable and and of in way. our evaluating aim Beyond to a financing growth to keep deposits, our We're different constantly
for during to our Also long-term aggregate November and our billion of We wide bank's couple March, approximately position months, notes strengthened capital late started executed prospects. domestic for strong billion confidence this testimony base. short-term conditions we MXNXX past issuances follow investor of an These billion. fulfill the the identified business issuer of further notes and MXNXX appropriate to MXNX.X market for complemented like an a are for liquidity the Mexico. with with in quarter. a notes provide long-term We During various last Santander constructive we debt the
our interest both As by you year-on-year income volumes interest and Slide higher can XX, see retail quarter-on-quarter, on and increased X.X% X.X% net driven mainly rates.
XX As X.XX% a for margin the basis quarter. result, expanded to interest net points
X.X%. X.X% interest seeing to Slide a together decrease and year-on-year upturn begin margin, as turn commissions We of and margin higher of increase expect increases. segments Please an slight fees sequential a in XX. to improvement net with continue rate interest Net an had
card a performance an offset the financial annual revenues by in in services due solid decrease for coupled on fees the to fees, were insurance mortgage Our the higher increases current extraordinary after cost higher renewal reward year-on-year combined with with credit in were business partially advisory XXXX, programs. in the registered policy and that XX% cost
better expect better the card credit for forward, performance our in increase fees, a Going in income. a are fee LikeU to as billings, average ambitions credit monthly achieving we card while composition
operating both to net XX. our Slide the still of the hand, to operating individual year-on-year, driven normalized by other in recurrent On MXNXXX above income, rate deposits more due gross Gross but increased performance result, loans increases. and a interest X% and mainly historical the range, income. X% Turning growth income MXNXXX million contributing our to was average trade had interest income million the to
asset ratio the adoption to increase IFRS not better-than-expected of deterioration the sequentially It's asset this makes in had couple recoveries portfolio, sequential the of provisions in pandemic payments to and booked basis declined the on to XX% XX. of previously. in XXXX any the reflects driven XX Slide quality addition and first an Moving retail points we performance NPL a and to the and additional in by ones quarter Provisions and the quarter is on the mainly The methodology, of of ratio impact in in quality. year-on-year, XX% non-comparable reported due which because February. face with corporate X
more though cards levels, provisions pre-pandemic and our forward, in to similar credit keep we expect increasing risk Going to loans. we're levels even consumer
to XX with continues standing a sequentially. point basis cost decrease a year-on-year of perform well risk XX and down X.XX%, basis portfolio at points loan Our
loan of any Looking the portfolio not any that would deterioration ahead, do segments. we impact see
should below X%. our risk of cost So remain
on as in due this other be the line. X XX. by of recorded the expenses which the to contributions will increased driven and new PAB costs reclassification to the Administrative promotional year-on-year, X.X% mainly implementation, Slide income this Turning of was IFRS year
and XXXX increased administrative fourth and X.X% to I our that after PTU Sequentially the decreased quarter year-on-year. outsourcing the the year-over-year, quarter XX% We increase the quarter. an Excluding resulted the and of peak-related which at in reclassification basis efficiency of XX% the expenses quarter the dynamics the ratio promotional combination in expenses sequentially stood the cost end this an for of the of feel about business reclassification along change fourth basis Accordingly, and new disciplined confident XXX XX control. with and law the points our in the impact peak improvement of IPAB of points at this accounting, noted. our
see due potential upside pressures However, we strengthen to a risk in our persisting efforts to expenses ongoing throughout digital to year, our inflationary capabilities. the and
of on Turning was year-on-year partially Slide taxes expenses, income mainly provisions to up XX% interest fees lower net and increase due solid to Net to XX% profitability increased softer and income. lower offset income XX. before market-related year-on-year MXNX.X and billion, still Profit by regulators’ the in the for accumulating on sequentially, for level. strong basis than year capital the earnings. We're to business. points year's the of ago performance the quarter the and was higher our reflecting XX.X%, XX% payout recommendation Return core previous average equity XXX limit
at year higher the XX% based XX%, basis XXXX. expected line addition, returned between on We year stands rate the effective almost to and rate XX by high In more still XX% level and normalized inflation end points a ago. anticipate than tax for a
brief closing share perspectives. Before our with let and going me you couple into in of session, adjustments some Q&A a thoughts the
X.X% X.X% X.X% growth a which business X%. sign. year-on-year some despite to X% between cost levels, to now positive to X% inflation, in As we our expenses expect mentioned are risk the higher-risk to high we from expenses, X.X% of On be around we persistently to of range, adjusting having to healthy, guidance, expect segments, to due X% is asset growth in quality to appetite our remain despite
we for rate, range a tax rate to XX%, are the considering the the inflation it anticipating is which XXXX. XX% and high between better expected For than lie bit previous
net adjustments, grow as to to results. continuous better north XX% environment keep stronger of the part forecast operating we Lastly, efforts aforementioned income and posting our of
making transformation. the growth new bank's and our continue We in will initiatives executing investments many
We us products maintain loyalty the that strategy strengthening advancements and operations, our innovation, to market enhance on digitalization will focuses digital customer offerings. through the our that by our digital of and enables leading the increasing products mainly our value of
Our concludes the now for your ambition This Mexico to become the We're ready Operator, remarks. to experience call superior Q&A take our for the in remains. questions. please bank customer known session. open
