...Solid Mexican Retail Sales: Following the recovery in Mexican consumption in 2015, Grupo Famsa, S.A.B. de C.V. (Famsa) reported consolidated revenues rose 11.8% over 2014. Its EBITDA margin increased to 10.7% from 9.7% in 2014, partly due to a better mix in product sales and declines in provisions for nonperforming loans (NPLs) at its financial division, Banco Famsa. Famsa's main challenge is to retain and increase share in a market where larger retail chains such as Coppel S.A. de C.V. and Grupo Elektra S.A.B. de C.V. also target lower income consumers. Banco Famsa's Operational Consolidation: Banco Famsa has good brand equity and a competitive position in consumer finance, mainly in northeastern Mexico. Its financial performance is constrained by high credit costs, which limited its ability to improve profitability, and still-high loan-impairment charges. However, the bank is addressing these issues and still shows reasonable capital adequacy. During 2014 and 2015, Famsa injected MXN400...
