BBVA Bancomer/2018 Annual Report slide image

BBVA Bancomer/2018 Annual Report

BBVA Bancomer/2018 Annual Report Customer funds managed by the Bank came to 1.6 trillion pesos, including demand deposits, term deposits, credit securities issued, global non-movement deposits account and assets managed in mutual funds. Fostering savings among the population is a key priority for BBVA Bancomer and this is shown by the growth reported in term deposits, which were up 11% on 2017. Meanwhile, assets managed in mutual funds ended 2018 in excess of 400,000 million pesos, maintaining BBVA Bancomer's status as one of the largest fund managers operating in the Mexican market with a share of 19%, according to data released by the Mexican Association of Stock Market Intermediaries (AMIB). Increased levels of lending and fund gathering activity allowed the Bank to report a financial margin of 132,650 million pesos, revealing annual growth of 8.2%. Level of investment was a particular highlight within the Bank's results, growing 10% on the previous year to climb past 5,000 million pesos. This investment was used mainly for technological renovation and upgrades and to maintain the largest infrastructure to be found within the banking system. However, GFBB has continued to grow its business activity while maintaining high levels of investment, making it most efficient institution operating within the Mexican financial system, with a cost-to-income ratio of 37.2%. GFBB maintains its position as the most efficient institution operating within the Mexican financial system, with a cost-to-income ratio of 37.2%. The product of this was net profit of 52,638 million pesos, which meant an annual variation of 15.4%. This result has been achieved with a solid capital base and a set of indicators comfortably clear of the minimum regulatory requirements (capitalization index of 15.3%). Aside from the excellent financial performance, 2018 was a year of major milestones in terms of the Group's strategy. For some years now, GFBB has made it a strategic priority to offer the best customer experience. In 2018, it continued to progress further along this path by making customer interaction with the bank more efficient across all points of contact. The customer service model was transformed at the Bank's branches, with priority given to advisory services; the voice portal and 'First Contact Solution' were implemented within the IVR to deal with charges and debits not recognized by customers; and the browsing experience was redesigned and new functionalities added to the self-direction facility (ATMs and Practicajas), such as the option to deposit checks. These changes in the physical range of products and services is enhanced and supplemented by an innovative range of digital products and services and the Group is now spearheading the digital transformation of the banking sector by literally putting the bank in the hands of its customers. More and more customers are relying on digital/mobile banking and all it has to offer. In 2018, GFBB's digital customers climbed to 7.2 million, 36% more than in 2017, while customers using the mobile banking service were up 49% on the previous year to reach 6.5 million. In 2018, GFBB's digital customers climbed to 7.2 million, 36% more than in previous year. Customers perceive these changes and once again they ranked the Bank as the leading institution, according to the Net Promoter Score (NPS). Meanwhile, the Bank has been working hard to increase its appeal to new customers and its efforts have paid off, because when it comes to payroll portability requests 64 out of every 100 payroll holders who decide to change banks choose GFBB. With these results, GFBB has cemented its leadership in one of the country's key sectors and has assumed, through a raft of concrete actions, a huge role in shaping Mexico's growth and development. Acting through the BBVA Bancomer Foundation, it views education as the best way to support Mexico; from 2002 to 2018 it awarded 278,000 grants for a grand total of 4,800 million pesos, helping some 108,000 beneficiaries complete their secondary, preparatory and university studies. In the wake of the 2017 earthquakes, the Bank rapidly joined the emergency response to support affected schools, providing seed capital of 180 million pesos and inviting GFBB's own ecosystem (customers, employees and allies) to join in, effectively raising the total amount to 350 million pesos. These funds will be used to build/renovate 25 schools, benefitting over 16,000 pupils by providing safer and better equipped facilities. Grupo Financiero BBVA Bancomer is convinced that there is still much to be done and that is why it has decided to raise its annual donation to the Foundation from 2019 onward, which will climb from 400 million pesos to 1 billion pesos a year, the aim being to enhance the grants and scholarship program and continue rehabilitating those schools in need of attention. This will allow the Foundation to generate a positive impact over the coming five years that is similar in scale to the impact it has managed to achieve over past 16 years. GFBB is seeking to become the country's main ally in making an inclusive Mexico; the best Mexico for everyone. Before I finish, I would like to thank the fantastic team of collaborators of the BBVA Bancomer Financial Group for all their hard work and dedication in helping to build this Bank. They really are what sets us apart from the crowd. Thanks also to our customers for their loyalty and trust. We will certainly continue in our tireless search to improve their experience. Last but not least, thanks to the members of our Board of Directors, who have brought their experience and sound judgment to bear to continue strengthening our Bank. 2018 was a great year, but I am sure that the best years are yet to come. BBVA Bancomer, Creating Opportunities Eduardo Osuna Osuna Deputy Chairman of the Board of Directors and CEO of BBVA Bancomer 8
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