Creating opportunities through the very best solutions
BBVA Bancomer Financial Group is a key driver of Mexico’s economic development. For many years GFBB has demonstrated its commitment to supporting Mexican savers, by building customer deposits in a secure and efficient manner and driving their growth, while ensuring that their savings are subject to appropriate oversight. The Bank also offers personalized financing options and solutions to individuals and businessesthat seek different forms of funding.
This section contains figures that demonstrate the recurrent nature of BBVA Bancomer’s results and the Bank’s robustness. This has been guaranteed via outstanding performance, shaped by a well-established philosophy of risk control and sustained long-term profitability.
GFBB recognizes the importance of providing access to financial services. Which is why underlying these financial results is a strategy based on the use of digital channels to furnish people with financial products and services that are specially designed to create opportunities and support the well-being of the population.
GFBB helps people make optimal financial decisions and thus generate a positive impact on society. It aims to become a tool that can be harnessed to achieve goals, so people no longer view us as just a bank.
Grupo Financiero BBVA Bancomer, key balances in millions of pesos.
At the end of December 2018, performing loans amounted to 1,142,173 million pesos, revealing annual growth of 8.0%. This positive development has not only allowed BBVA Bancomer to ground its status as a market leader with a share of 22% at the end of December 2018, but also —according to public information released by the National Banking and Securities Commission (CNBV)— it allowed the bank to report the largest increase in the loan portfolio over the last twelve months.
Commercial credit was up 8.9% in the year to reach 658,507 million pesos. Commercial and industrial loans posted the strongest performance within this portfolio (these include lending to corporations, medium-sized enterprises, real estate developers and SMEs), with an increase of 10.1% over the last twelve months.
Additional revenues were recorded at the year-end linked to extraordinary payments, such as bonus earnings. This is reflected in the performance of the consumer lending and credit card portfolio, which was up 6.1% in the year to reach 275,090 million pesos. The largest growth in this portfolio came from consumer finance, which includes payroll, personal and auto loans, to close the year with a balance of 167,997 million pesos, 9.0% higher than the previous year. The credit card portfolio amounted to 107,093 million pesos at year-end 2018, up 1.7% year-on-year.
Mortgages were up 7.6% at the end of December 2018, totaling 208,577 million pesos. BBVA Bancomer is still the leading bank in mortgage loans; according to the CNBV it grants one out of every four new mortgages in the private sector.
Bank deposits (demand and time) rose 3.3% over the year. If we include issued credit securities and the global non-movement deposits account, traditional deposits climbed to 1,195,889 million pesos, revealing an annual increase of 3.2%. Demand deposits were up 3.5% in the year to close December 2018 at 864,477 million pesos. Meanwhile, public time deposits reported growth of 11.4% compared to the end of December 2017, allowing BBVA Bancomer to maintain a profitable funding mix, with a greater relative weight of demand deposits.
Assets managed in mutual funds stood at 400,342 million pesos at the end of December 2018, up 3.0% in the year. Thus, BBVA Bancomer Gestión, S.A. de C.V., Sociedad Operadora de Fondos de Inversión, BBVA Bancomer Financial Group remains one of the largest mutual fund managers operating within the market, with a market share of 19% according to information released by the Mexican Association of Stock Market Intermediaries as (AMIB) at December 2018. Meanwhile, total deposits amounted to 1.6 trillion pesos, equivalent to annual growth of 3.2%.
Net interest income totaled 132,650 million pesos in 2018, equivalent to annual growth of 8.2%. This growth was driven by higher volumes of loans and deposits. Loan-loss provisions were down 2.7% due to the healthy performance of the loan portfolio. As a result, net interest income adjusted for credit risks was 100,340 million pesos in December 2018, up 12.2% on the figure reported a year earlier.
This performance has seen GFBB maintain high profitability indicators, with a net interest margin (NIM) of 6.0% at December 2018, while the NIM adjusted for credit risk stood at 4.9%.
Fees and commissions saw an annual increase of 8.8%, totaling 27,010 million pesos at the end of December 2018. The outperformers were fees and commissions from management, and trading volume of mutual funds, followed by banking fees. Credit and debit card fees were up 6% year on year, following an increase in the number of transactions carried out with these products.
Trading income was down 15.7% in the year compared to December 2018, impacted by trading in financial derivative instruments and due to the result of investments in securities for sale.
Other income (expense) from transactions compared favorably with December 2017, mainly due to the capital gain obtained from the sale of a real estate asset in the second quarter of 2018.
Expenses were up 6.5% in the year, largely because of a higher wage cost following the inflation adjustment made to staff salaries.
Meanwhile, continuous investment activity helped generate a stronger banking infrastructure. At the end of December 2018, BBVA Bancomer had a total of 1,833 branches and 12,610 ATMs to serve its entire customer base.
However, proper management of income allows GFBB to position itself as one of the most efficient institutions in the financial system, with an efficiency ratio - measured as an expense-to-income ratio - of 37.2% at the end of December 2018.
Net profit totaled 52,638 million pesos at year-end 2018, up 15.4% (+7,035 million pesos).
| Ratios (%) | GFBB | Market* |
|---|---|---|
| Return on Equity (ROE) | 25.4 | 16.1 |
| Net Interest Margin (NIM) | 6.0 | 5.1 |
| Cost-to-Income Ratio | 37.2 | 49.8 |
| NPL Ratio | 2.0 | 2.1 |
* Market comprising five groups at December 2018 (Citibanamex, Santander, Banorte, HSBC and Scotiabank).
Source: Financial Groups Quarterly Report.
