BBVA Bancomer/2018 Annual Report slide image

BBVA Bancomer/2018 Annual Report

Business Development This is the transversal area of the Branch Network, and has been designed to develop new businesses, technologies and channels to guarantee that BBVA Bancomer will continue to be the market leader, stay at the cutting edge, and be a model bank. The Insurance Business, which is an integral part of the loan portfolio sales circuit, has been placed within this division. One of the main objectives of this unit is to increase the value of the customer by building stronger engagement, which will also be reflected in greater customer loyalty. We believe that the best yardstick is the paycheck accounts. In terms of portability, BBVA Bancomer has realized that not only is it viewed positively by customers, but also that it has become an attractive bank for new customers. In 2018, 64% of the people who decided to change their paycheck from one bank to another did so to BBVA Bancomer, and, more importantly, 69% did so digitally. Our focus on digital channels has paid off, allowing us to drive sales; it has also been a great support in post-sales. We closed the year with 7.2 million digital customers, up 36% year on year, while mobile customers totaled 6.5 million at 31 December 2018, up 46% on 2017. Clients in the business segment are also an important source of deposits, as they mainly use savings and cash management products. BBVA Bancomer offers a broad range of products tailor made to meet customers' requirements in terms of cash management and collection solutions. Some of the most popular products are: the Integral Bancomer Treasury, which makes it easier and quicker for customers to carry out their financial transactions by installing high-tech software through our website, and Multipayments, a software which has optimized the collection process. At December 31, 2018, the corporate loan portfolio totaled 258,825 million pesos, accounting for roughly 39% of the total commercial loans portfolio. In 2018, 64% of the people who decided to change their paycheck from one bank to another chose BBVA Bancomer; as their new bank and 69% did so digitally. Government & Business Banking BBVA Bancomer offers services to the business segment through a network of 102 branches. At December 31, 2018, the corporate loan portfolio amounted to 258,825 million pesos, accounting for roughly 39% of the total commercial loans portfolio. We have managed to maintain the quality of this portfolio, and at December 31, 2018 the NPL ratio stood at 1.5%. Housing developers This segment largely covers the granting of bridge loans for construction pur- poses. At of December 31, 2018, the housing developer loan portfolio came to 17,453 million, revealing annual growth of 5.5%. In 2018, BBVA Bancomer granted loans to fund the construction of 22,379 housing projects. Consumer Finance The Consumer Finance unit, which was created exclusively to serve the auto segment and its life cycle, including loans for vehicle distribution and acqui- sition, is part of Wholesale and Investment Banking. Through this unit, BBVA Bancomer can also meet all the requirements and financial needs of auto dealers (agencies). In terms of end consumers, auto loans totaled 47,914 million pesos at year- end 2018, showing annual growth of 9.9%. During the year, a total of 124,643 auto loans were granted. 14 BBVA Bancomer/2018 Annual Report
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