BBVA Bancomer/2018 Annual Report slide image

BBVA Bancomer/2018 Annual Report

Letter from the Chairman of the Board of Directors GRI 102-14 and 102-15 Dear shareholders, Being the leading bank in our country is no easy feat. We must stay on our toes year after year if our business is to remain successful and if we are to fulfill the responsibilities we have assumed with our customers and shareholders. We must also play our part in building a sustainable future that will allow us to overcome the new social, economic and environmental challenges in a timely and effective manner. Once again we faced a year of daunting challenges and major achievements in 2018; a year of change and of new realities for the country, for the financial system and for BBVA Bancomer. The banking system continued to expand: total lending within the system was up 9.3% at year- end, similar to the growth reported in 2017, although by credit components we saw a mixed bag of results. Household financing revealed a slight slowdown with respect to the previous year, in line with the lower growth in consumer lending (6.8% vs. 8.5% in 2017), albeit offset by greater growth in mortgage lending (9.9% vs. 8.4%). Portfolio delinquency remained low across both segments, at 4.4% and 2.6%, respectively. Last but not least, growth in lending to businesses and government bodies was on par with the previous year (9.9%), with an equally stable NPL portfolio rate of 1.3%. BBVA Bancomer increased its dynamism, growing at a rate of 7.9%, higher than in 2017 with 5.7%. BBVA Bancomer's own performance was particularly noteworthy, because while the system grew at the same rate as in the previous year, the Bank impressed by outperforming its own growth in 2017 (7.9% vs. 5.7%). Moreover, and unlike the wider system, BBVA Bancomer either maintained or improved its performance across all its credit components while reporting a reduction in non-performing loan ratios. 5
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