Banregio Grupo Financiero SAB de CV booked a 45% year-over-year increase in its fourth-quarter 2016 profit, helped by a 38% decline in provisions for loan losses and a 20% rise in net commissions and fees.
The bank reported net income of 715 million Mexican pesos for the three-month period, compared to 493 million pesos in the year-ago period. Banregio noted that unit Banco Regional de Monterrey SA Institución de Banca Múltiple contributed 93% of the group's total profit in the fourth quarter 2016.
The company's financial margin grew 21% annually to reach about 1.41 billion pesos from 1.17 billion pesos a year earlier. At the same time, net provisions for possible loan losses fell to 83 million pesos from 134 million pesos. The lender's net interest margin improved to 5.6% from 5.4% in the linked quarter and 4.3% a year ago.
Net commissions and fees, meanwhile, reached a total of 138 million pesos in the fourth quarter, increasing 20% from 115 million pesos a year earlier. The result for insurance and FX trading totaled 119 million pesos, rising 57% annually.
The bank's net loan portfolio grew 18% to reach about 77.97 billion pesos as the end of the quarter, up from 66.33 billion pesos a year ago. Mortgage loans expanded 28% while consumer credit jumped 39%.
The company's nonperforming loans ratio fell 1 basis point to 1.6% at the end of the fourth quarter of 2016. Of the total NPL portfolio, 86% corresponds to commercial loans, 12% to mortgages and 2% to consumer loans.
Banregio's return on average equity was 20.2%, up from 17.4% a year ago, while its return on average assets ticked to 2.4% from 1.8%.
The fourth-quarter results brought the company's full-year 2016 profit to about 2.41 billion pesos, up from 1.79 billion pesos in 2015.
The company noted that it opened three new branches in Mexico during the fourth quarter of 2016, one each in Zacatecas, Nuevo León and Mexico City, increasing its total branch network to 147.
As of Jan. 23, US$1 was equivalent to 21.41 Mexican pesos.