Banco de Mexico
Banco de Mexico
News Article | May 4, 2017
MEXICO CITY--(BUSINESS WIRE)--Industrias Unidas, S.A. de C.V. (“IUSA” or the “Company”) has announced its audited results for the twelve months ended December 31 of 2016. Figures are audited and have been prepared in accordance with Mexican Financial Reporting Standards (“MFRS”), which are different in certain respects from Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). The results from any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. Unless stated otherwise, reference herein to “Pesos”, “pesos”, or “Ps.” are to pesos, the legal currency of Mexico and references to “U.S. dollars”, “dollars”, “U.S. $” or “$” are to United States dollars, the legal currency of the United States of America. Except as otherwise indicated, all peso amounts are presented herein in pesos with purchasing power as of December 31, 2016 and in pesos with their historical value for other dates cited. The dollar translations provided in this document are calculated solely for the convenience of the reader using an exchange rate of Ps. 20.64 per U.S. dollar, the exchange rate published by Banco de Mexico, the country’s central bank, on December 30, 2016. The following table summarizes our results of operations for the twelve months ended December 31, 2016 and 2015: 1/ EBITDA for any period is defined as consolidated net income (loss) excluding i) depreciation and amortization, ii) total net comprehensive financing result (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other Financing costs), iii) other expenses net, iv) income tax and statutory employee profit sharing and v) equity in income (loss) of associated companies. EBITDA should not be considered as an alternate measure of net income or operating income, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with MFRS, or as an indicator of operating performance or to cash flows from operating activity as a measure of liquidity. EBITDA is not a recognized term under MFRS or U.S. GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activity as a measure of liquidity. Our consolidated net loss for the twelve months ended December 31, 2016 was Ps.388.2 million (US$18.8 million), compared to a net loss of Ps.891.3 million in the same period of 2015. This change is primarily due to an increase in our operating income, driven by better margins in the sale of products and a decrease in our operating expenses. Our net revenues for the twelve months of 2016 increased 19.0% to Ps.16,528.1 million (US$800.8 million) from Ps.13,888.6 million in the same period of 2015. This increase was due to a 4.2% growth in volume sales of our copper products and better sales margin, driven by market conditions. Our costs and revenues follow copper prices very closely since the market practice is to pass on to the buyer changes in raw material price. Our sales are primarily to customers engaged in the commercial, industrial and residential construction, and their related maintenance and renovation activities. We also sell to customers engaged in electrical power generation, transmission and distribution and to the sector of gas, water and air conduction in the Heating, Ventilation, Air conditioning and Refrigeration (HVACR). Our revenues consist mainly of sales of copper-based products (tubing, wire, cable and alloys) and electrical products. By country of production, approximately 65.4% of our revenues in the twelve months ended December 31, 2016 came from products manufactured in México and the remaining 34.6% from products manufactured in the U.S. In terms of sales by region during the twelve months ended December 31, 2016 we derived approximately 59.6% of our revenues from sales to customers in México, 38.0% from customers in the United States and 2.4% from the rest of the world (“ROW”). In terms of volume, consolidated sales of copper products during the twelve months ended December 31, 2016 increased by 4.2% as compared to the same period in 2015: Our cost of sales in the twelve months ended December 31, 2016 increased by 17.4% to Ps.13,936.6 million (US$675.2 million) from Ps.11,867.3 million in the same period of 2015. As percentage of revenues, cost of sales decreased to 84.3% in 2016 from 85.4% in 2015. We continued the reduction of our cost base through several initiatives, including plant scheduling, raw material handling and overall manufacturing overhead costs. According to our accounting policies, we make an inventory valuation at average purchase price. In the case of copper cathodes, an end of month adjustment is required due to the quotation period agreed with the suppliers (M+1). This quotation price initiative allows us to hedge purchases for 30 days at no additional cost. The adjustment in price is recorded to the cost of sales in the month of its occurrence. Our gross profit in the twelve months ended December 31, 2016 increased 21.3% to Ps.2,591.5 million (US$125.6 million), from Ps.2,137.0 million in the same period of 2015. As percentage of sales, gross profit increased to 15.7% from 15.4% in the corresponding periods. Our selling and administrative expenses in the twelve months ended December 31, 2016 decreased 2.4% to Ps.1,497.0 million (US$72.5 million), from Ps.1,533.9 in the same period of 2015. Our operating income in the twelve months ended December 31, 2016 increased 81.5% to Ps.1,094.5 million (U.S.$53.0 million) from Ps.603.1 in the same period of 2015, mainly due to an increase in revenues. In the twelve months ended December 31, 2016 EBITDA was Ps.1,665.9 million(or US$80.7 million), compared to an EBITDA of Ps. 1,104.8 million in the same period of 2015. The corresponding depreciation and amortization figures are Ps.571.4 million for January to December 2016 and Ps.501.7 million for the same period of 2015. The following table shows our comprehensive financing result for the twelve months ended December 31, 2015 and 2016: Our comprehensive financing result decreased 4.7% in the twelve months ended December 31, 2016 to Ps.1,590.3 million from Ps.1,668.2 million in the same period of 2015. This was explained mainly by the fact that our interest expenses were denominated in US dollars and the Mexican peso depreciated against the US dollar in the same period. The provision for current and deferred income taxes and statutory employee profit sharing in the twelve months ended December 31, 2016 was a benefit of Ps.58.9 million compared to a benefit of Ps.160.6 million in the same period of 2015. Our consolidated net loss for the twelve months ended December 31, 2016 was Ps.388.2 million (US$18.8 million), compared to a net loss of Ps.891.3 million in the same period of 2015. As of December 31, 2016, we had cash and cash equivalents for Ps.576.5 million (U.S. $27.9 million). Our policy is to invest available cash in short-term instruments issued by Mexican and U.S. banks as well as in securities issued by the governments of Mexico and the U.S. Our cash flow from operations and operating margins are significantly influenced by world market prices for raw copper, as quoted by COMEX and the London Metal Exchange (“LME”). Copper prices are subject to significant market fluctuations; average copper prices decreased 12.4% in the twelve months ended December 31, 2016 to $2.20 US dollar per pound from $2.51 US dollar per pound in the same period of 2015. We obtain short-term financing from various sources, including Mexican and international banks. Short-term financing consists in part of lines of credit denominated in pesos and dollars. As of December 31, 2016, our outstanding short-term debt, including the current portion of long-term debt totaled Ps.404.4 million (U.S. $19.6 million), all of which was dollar-denominated. On the same date, our outstanding consolidated long-term debt, excluding current portion thereof, totaled Ps.7,462.4 million (U.S.$361.6 million), all of which was dollar-denominated. Accounts receivable from third parties as of December 31, 2016 were Ps.3,222.6 million (U.S.$156.1 million). Days outstanding in the domestic market were 31 days as of December 31, 2016. The following table summarizes our debt as of December 31, 2016: This total includes the restructured debt of the Company. For the twelve months ended December 31, 2016, we invested Ps.200.6 million (U.S. $9.7 million) in capital expenditure projects, mainly related to expansion of production and maintenance. In the twelve months ended December 31, 2016 our capital expenditures were allocated by segments as follows: 37.3% to copper tubing, 1.7% to wire and cable, 10.2% to valves and controls, 4.8% to copper alloys and the remaining 46.0% to other divisions. By geographic region 65.2% of total capital expenditures were invested in our Mexican facilities and the remaining 34.8% in the U.S. You should read this document in conjunction with the audited consolidated financial statements as of December 31, 2016, including the notes to those statements.
News Article | April 28, 2017
Santander México reported net income for 1Q17 of Ps.4,520 million, representing a YoY increase of 27.7% and a QoQ decrease of 0.5%. Héctor Grisi, Grupo Financiero Santander México's Executive President and CEO, commented: "We started the year in a strong position, demonstrating our ability to deliver consistent profitability, even as the macro backdrop remains uncertain. "We remain focused on becoming a truly client-centric bank, and are proud of our sound asset quality and profitability across the board. As ever, we are committed to boosting productivity by prioritizing innovation, investment, and scaling operating efficiencies. "We posted robust NII, up 15% year-on-year, despite more muted volume growth consistent with our focus on profitability along with stiff competition. Our initiatives to offer an attractive value proposition for Individuals and SMEs through innovative products and a client centric approach are driving strong deposit growth. "The Santander Plus program continues to gain traction, reaching more than 1.5 million customers, 52% of which are new. Similarly, the Santander-Aeroméxico co-branded card is showing robust performance, reaching 500,000 customers, of which 34% are new to the bank. Overall, the number of net new clients has grown over 170% since May 2016, reflecting a combination of new clients, but most importantly lower attrition. Loyal and digital clients have grown 21% and 61%, respectively. In addition, we continue to launch innovative products and upgrade our transaction and operational model to enhance the customer journey and sharpen our competitive position. "Our disciplined approach to asset quality is paying off, with our non-performing loan ratio falling to 2.38% in the quarter – a 50 bps YoY improvement consistent with our risk appetite. "Overall, we reported a solid bottom line with net income up a 28% YoY to 4.5 billion pesos, and ROAE up 380 basis points to 16.1%. This performance underscores the resilience of Santander México's business against a volatile global backdrop, as we execute our strategic initiatives and focus on risk-weighted asset returns and efficiency. Looking forward, we are committed to ongoing investment to drive innovation and strengthen our business, maintaining a strong focus on profitability and efficiency." ABOUT GRUPO FINANCIERO SANTANDER MÉXICO, S.A.B. DE C.V. (NYSE: BSMX; BMV: SANMEX) Grupo Financiero Santander México, S.A.B. de C.V. (Santander México), one of Mexico's leading financial services holding companies, provides a wide range of financial and related services, including retail and commercial banking, securities brokerage, financial advisory and other related investment activities. Santander México offers a multichannel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multinational companies in Mexico. As of March 31, 2017, Santander México had total assets of Ps.1,269 billion under Mexican Banking GAAP and more than 13.9 million customers. Headquartered in Mexico City, the Company operates 1,076 branches and 315 offices nationwide and has a total of 16,927 employees. LEGAL DISCLAIMER Grupo Financiero Santander México cautions that this report may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may be found in various places throughout this report and include, without limitation, statements regarding our intent, belief, targets or current expectations in connection with: asset growth and sources of funding; growth of our fee-based business; expansion of our distribution network; our focus on strategic businesses; our compound annual growth rate; our risk, efficiency and profitability targets; financing plans; competition; impact of regulation; exposure to market risks including interest rate risk, foreign exchange risk and equity price risk; exposure to credit risks including credit default risk and settlement risk; projected capital expenditures; capitalization requirements and level of reserves; liquidity; trends affecting the economy generally; and trends affecting our financial condition and our results of operations. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: changes in capital markets in general that may affect policies or attitudes towards lending to Mexico or Mexican companies; changes in economic conditions, in Mexico in particular, in the United States or globally; the monetary, foreign exchange and interest rate policies of the Mexican Central Bank (Banco de Mexico); inflation; deflation; unemployment; unanticipated turbulence in interest rates; movements in foreign exchange rates; movements in equity prices or other rates or prices; changes in Mexican and foreign policies, legislation and regulations; changes in requirements to make contributions to, for the receipt of support from programs organized by or requiring deposits to be made or assessments observed or imposed by, the Mexican government; changes in taxes; competition, changes in competition and pricing environments; our inability to hedge certain risks economically; economic conditions that affect consumer spending and the ability of customers to comply with obligations; the adequacy of allowances for loans and other losses; increased default by borrowers; technological changes; changes in consumer spending and saving habits; increased costs; unanticipated increases in financing and other costs or the inability to obtain additional debt or equity financing on attractive terms; changes in, or failure to comply with, banking regulations; and certain other factors indicated in our annual report20F. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the U.S. Securities and Exchange Commission, could adversely affect our business and financial performance. Note: The information contained in this report is not audited. Nevertheless, the consolidated accounts are prepared on the basis of the accounting principles and regulations prescribed by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) for credit institutions, as amended (Mexican Banking GAAP). All figures presented are in nominal terms. Historical figures are not adjusted for inflation. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/grupo-financiero-santander-mexico-reports-first-quarter-2017-net-income-of-ps4520-million-300447952.html
Guerrero V.M.,Autonomus Institute of Technology of Mexico |
Silva E.,Northern University of Mexico |
Gomez N.,Banco de Mexico
Journal of Forecasting | Year: 2014
We consider a forecasting problem that arises when an intervention is expected to occur on an economic system during the forecast horizon. The time series model employed is seen as a statistical device that serves to capture the empirical regularities of the observed data on the variables of the system without relying on a particular theoretical structure. Either the deterministic or the stochastic structure of a vector autoregressive error correction model of the system is assumed to be affected by the intervention. The information about the intervention effect is just provided by some linear restrictions imposed on the future values of the variables involved. Formulas for restricted forecasts with intervention effects and their mean squared errors are derived as a particular case of Catlin's static updating theorem. An empirical illustration uses Mexican macroeconomic data on five variables and the restricted forecasts consider targets for years 2011-2014. © 2013 John Wiley & Sons, Ltd.
Lim J.,Institute Finanzas Of Corea |
Rodriguez-Zamora C.,Banco de Mexico
Trimestre Economico | Year: 2015
We study the implications for the optimal taxation problem when allowing the possibility of substitution between market goods and time. We find that the higher the elasticity of substitution between market goods and time in a given home production activity, the lower the tax rate on such market goods should be. We advance existing literature in two dimensions. First, we express the Ramsey rule in terms of elasticities of substitution, which are easier to estimate. This extends the scope of applications of the Ramsey rule in policy issues. Second, we illustrate the proposed optimal tax rule by estimating the corresponding elasticities of substitution using Mexican data. According to the model and the data, the optimal value added tax structure for Mexico in 2002 would have been a 7% tax rate on food and 5.5% tax rate on all other market goods.
Solorzano-Margain J.P.,Banco de Mexico |
Martinez-Jaramillo S.,Banco de Mexico |
Lopez-Gallo F.,Banco de Mexico
Computational Management Science | Year: 2013
Direct contagion has been widely studied in recent years and little evidence has been found to be relevant to the study of systemic risk. However, we argue that this limited contagion effect might be associated with a lack of relevant data. A common assumption for the estimation of the matrices of exposures is to apply the maximum entropy principle to deal with data gaps; such an assumption might lead to an underestimation of contagion risk. In this paper, there are no data gaps and the information set is extended from interbank exposures alone to exposures among most of the financial intermediaries in the Mexican financial system (we even include exposures to some international foreign banks). Naturally, the contagion risk of an extended network of exposures changes with respect to the interbank exposures network, as there are many more institutions which can be the source of contagion and there are more institutions which can fail due to contagion. The most important contribution of this paper is that it provides evidence on financial contagion with an extended exposures network under stressful conditions. The results presented here support the international efforts by the Bank for International Settlements, the International Monetary Fund and the Financial Stability Board to increase the amount of information available which can be used to assess systemic risk and contagion based on exposures and funding data. © 2013 Springer-Verlag Berlin Heidelberg.
de Melo G.,Banco de Mexico |
de Melo G.,University of the Republic of Uruguay |
Piaggio M.,University of the Republic of Uruguay |
Piaggio M.,Autonomous University of Barcelona
Ecological Economics | Year: 2015
We provide experimental evidence on the effects of social disapproval by peers among communities of Uruguayan small-scale fishers exploiting a common pool resource (CPR). We combined this treatment with an in-group (groups from a single community)/mixed group (groups composed of fishers from different communities) treatment. Our aim is to compare the effects of social disapproval in a context in which individuals exploiting a CPR belong to different communities relative to the case in which only individuals from the same community are allowed to exploit the resource. We find that mixed groups-unlike in-groups-reduce their exploitation of the resource in response to the threat of punishment. We do not find any differences in behavior between in-groups and mixed groups when the possibility of being punished is not available. Both in in-groups and mixed groups there is substantial antisocial punishment, which leads to increased extraction of the CPR by those who are unfairly punished. We interpret that the effectiveness of social disapproval is reduced because cooperation was not perceived as the unique social norm. These findings indicate that effective peer punishment requires coordination to prevent antisocial targeting and to clarify the social signal conveyed by punishment. © 2015 Elsevier B.V.
Bravo-Benitez B.,Banco de Mexico |
Alexandrova-Kabadjova B.,Banco de Mexico |
Martinez-Jaramillo S.,Banco de Mexico
Computational Economics | Year: 2016
With the purpose of going further in the understanding of the payment flows among the participants in the large value payment system in Mexico, SPEI, we elaborate payment networks using historical data for a period of seven years. We conceptualize the SPEI large value payment system as a multiplex network and we study it accordingly. Based on transactions performed on a daily basis, we present three layers built on the following types of payments, i.e. transactions sent from participant to participant, from participant to third party and from third party to third party. We observe that those layers exhibit dissimilar topology: the participant to participant layer reveals the behaviour of banks settling their own obligations, which proved to be sensitive to the failure of Lehmann Brothers; the participant to third party payments layer presented stable properties; and the third party to third party layer resulted in an increasingly dense network since the system has been adopted for the settlement of low-value obligations between accountholders. In order to identify relevant players in those layers, we compare some well-known centrality measures and also a novel centrality measure specifically designed for payment systems, SinkRank. The rankings assigned by SinkRank show a low degree of coincidence across layers. © 2014, Springer Science+Business Media New York.
de Melo G.,Banco de Mexico |
de Melo G.,Autonomous University of Barcelona |
Piaggio M.,University of the Republic of Uruguay |
Piaggio M.,Autonomous University of Barcelona
Ecological Economics | Year: 2015
We provide experimental evidence on the effects of social disapproval by peers among communities of Uruguayan small-scale fishers exploiting a common pool resource (CPR). We combined this treatment with an in-group (groups from a single community)/mixed group (groups composed of fishers from different communities) treatment. Our aim is to compare the effects of social disapproval in a context in which individuals exploiting a CPR belong to different communities relative to the case in which only individuals from the same community are allowed to exploit the resource. We find that mixed groups-unlike in-groups-reduce their exploitation of the resource in response to the threat of punishment. We do not find any differences in behavior between in-groups and mixed groups when the possibility of being punished is not available. Both in in-groups and mixed groups there is substantial antisocial punishment, which leads to increased extraction of the CPR by those who are unfairly punished. We interpret that the effectiveness of social disapproval is reduced because cooperation was not perceived as the unique social norm. These findings indicate that effective peer punishment requires coordination to prevent antisocial targeting and to clarify the social signal conveyed by punishment. © 2015 Elsevier B.V..
Coronado-Garcia L.C.,Banco de Mexico |
Perez-Leguizamo C.,Banco de Mexico
Proceedings - 2011 10th International Symposium on Autonomous Decentralized Systems, ISADS 2011 | Year: 2011
A main goal of a Public Key Infrastructure (PKI) is the management of digital certificates in order to bind public keys with respective user identities assuring the uniqueness of these public keys. A PKI must guarantee the reliability of its services, assuring the timeliness of its responses and the continuity of the service despite of the growth in the number of users and the presence of hardware or software failures. In this paper we propose a model of a PKI based on a Autonomous Decentralized System (ADS) paradigm, which satisfies the requirements described above. As a result of this reseach, we have implemented such a solution and it provides its services already.
Banco De Mexico | Date: 2014-12-23
Methods for certifying a security document comprising the steps of: a) selecting a set of unique characteristics, obtained as the result of the variations in the manufacturing process and supplies, b) getting a digital image of a security document and obtaining data of the relative position between features selected from different manufacturing processes (register), c) constructing a message by measuring the register of selected features from the document and the document ID data, d) constructing a hashed message, the hashed message being the message obtained after being encoded by means of a unidirectional cryptographic hash function, e) encrypting the hashed message using a public key cryptographic system to obtain a digital certificate by means of a private key, and f) storing the digital certificate in an external database.