BBVA Bancomer/2018 Annual Report

Letter from the Deputy Chairman of the Board of Directors and CEO GRI 102-14, 102-15 and 413-1 Business in 2018 We came up against many challenges in 2018, with both domestic and external events generating episodes of volatility within the country. Against this backdrop, Grupo Financiero BBVA Bancomer S.A. de C.V. (GFBB) showed just how committed it is to Mexico by fostering investment, job creation and the well-being of Mexican families and championing savings and credit. It achieved remarkable results, reporting significant growth across all lines of business. The outstanding loan portfolio ended the year with a balance in excess of 1.1 trillion pesos, up 85,000 million pesos on 2017 and outgrowing the entire market in the process. This effectively reaffirmed the Group's leadership by bringing its market share to 22.4%, according to public information released by the National Banking and Securities Commission (CNBV). Within this portfolio, financing to productive segments (Corporate, Companies and SMEs) reached 658,507 million pesos. Lending to businesses was the most dynamic component in the year, with annual growth of 10%. Lending to businesses was the most dynamic component in the year, with annual growth of 10%. Financing to individuals and households in Mexico, in the form of consumer loans (credit cards, personal, payroll, auto) and mortgage loans, climbed to 483,667 million pesos, up 7% on the previous year. Notably, a total of 32,000 mortgage loans were awarded in 2018, for a total amount of 40,000 million pesos, making it a record placement for the Bank. Lending growth has also been accompanied by sturdy risk quality indicators. The NPL ratio stood at 2.0% at year-end 2018 and the risk premium improved by falling from 3.2% in December 2017 to 2.9% in December 2018. Meanwhile, the coverage ratio ended the year at 137.0%. 7

View entire presentation