BBVA Bancomer/2018 Annual Report slide image

BBVA Bancomer/2018 Annual Report

BBVA Bancomer/2018 Annual Report A prime example of this was lending to households, which closed the year with growth of 6.4%, up on the 5.7% observed in 2017, and with an NPL ratio of 3.1%, an improvement on the 3.6% reported within the system. Lending to businesses and government bodies performed even better, climbing from 5.6% growth at the end of 2017 to 9.1% in 2018 and with an NPL portfolio rate of 1.2%. At BBVA Bancomer our risk assessment mechanisms are among the best in the world, allowing us to achieve these healthy growth rates in our loan portfolio. Our strong performance in 2018-all the more remarkable given the complicated political and economic backdrop both at home and abroad-will ultimately make the Bank more able to implement the changes that society and the economic environment will surely demand in the years to come. BBVA Bancomer has adopted a model of Responsible Banking, an innovative approach to attaining our purpose of "Bringing the age of opportunity to everyone". This is to be achieved through the following six pillars, all designed to responsibly manage the impact our activities have on society: enhancing the customer's unique experience, championing sustainable financing mechanisms, committing to programs that have a positive impact on the community (focusing on financial inclusion), improving reputation by strengthening relations with our stakeholders, generating a responsible commitment to our employees and embracing the strategy of different initiatives to cement our position as a leading company within the sector. BBVA Bancomer has adopted a model of Responsible Banking, an innovative approach to attaining our purpose of "Bringing the age of opportunity to everyone". We believe that banking plays an important role in promoting sustainable development and in combating climate change by mobilizing resources to provide innovative solutions that contribute to a greener and more efficient economy. One of the challenges we have set ourselves on a global scale is to mobilize 1 billion euros by 2025 to combat climate change and to help fulfil the Sustainable Development Goals of the United Nations. Meanwhile, BBVA has continued to implement its third Global Eco-efficiency Plan, which aims to make the Bank one of the world's most eco-friendly companies by 2020. Targets here include a 5% reduction in electricity consumption and an 8% reduction in CO2 emissions, as well as similar reductions in the consumption of water and paper and waste generation. Please be sure to learn more about BBVA's actions, our progress in 2018 and the targets set for 2019 as we all contribute towards the UN Sustainable Development Goals. In Mexico, where BBVA Bancomer has become a benchmark for its commitment to sustainability -adhering to the UN Global Compact in 2003 and earning the Socially Responsible Company Award on 18 separate occasions- in 2018 we successfully placed the first Green Bond to be issued by a private bank in Mexico, for a total of seven billion pesos. In 2018 we successfully placed the first Green Bond to be issued by a private bank in Mexico, for a total of 7 billion pesos. In the wake of the 2017 earthquakes, we embarked on a school reconstruction campaign alongside our allies, allowing us to deliver nine schools in 2018 to benefit a total of four thousand students. Looking ahead to 2019, our goal is to deliver 25 rebuilt schools, ultimately benefitting more than sixteen thousand pupils. BBVA Bancomer has channeled upwards of four billion, eight hundred million pesos into promoting education and culture within the country. Since 2002, the BBVA Bancomer Foundation has awarded 278,000 grants for secondary, high school and university students to support the development of young Mexican talent. Meanwhile, the BBVA Bancomer Financial Education program has been working for 10 years to help people better understand and use financial products and services to improve their quality of life. This takes the form of a completely free service, which in 2018 aided more than 30,000 people through face-to-face workshops; more than 20,000 beneficiaries of federal social programs that include financial education modules; more than 17,000 people via the social service available to young students through agreements with their universities; half a million children between the ages of four and 12 through recreational activities; and through the digitization strategy we integrated value propositions into 64 unique products such as apps and digital products. Last but not least, and as a further show of our tireless commitment to the country, I am proud to announce that from 2019 Bancomer will double its contribution to the BBVA Bancomer Foundation, which will allow us to make an even greater contribution to the country's inclusive development. Despite the prevailing uncertainty surrounding the global economy, growing competition across the financial markets and an increasingly demanding and participative society, I am convinced that the strengths that have made us the country's leading bank are the same strengths that will keep us at the top and allow us to climb even higher by increasing our value proposition across all segments, for the ultimate benefit of our customers, shareholders and the country. Sincerely yours, Jaime Serra Puche Chairman of the Board of Directors BBVA Bancomer Financial Group 6
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