The Business Units are structured as follows:

Retail Network: serves all retail segments via the Group’s branch network. Business Development includes the insurance business —which spans the entire Commercial Network— and has helped BBVA Bancomer remain at the forefront of the banking sector.

Government and Business Banking: serves medium-sized companies, government bodies, housing developers and distributors in the automobile market.

Corporate and Investment Banking (CIB) is the Group-wide business unit that brings together the wholesale businesses of the BBVA Group. This unit serves global customers such as institutional and large corporate investors, offering them a wide range of investment products. The unit also includes the Global Markets area, which together with the Brokerage House offers sophisticated products to individuals and businesses alike.

Business Units benefit from the assistance of Staff Units, which enable recurrent business results and integrated management, while also generating synergies to fuel further growth.

This department manages the entire Branch Network, which offers services to the individual segments, ranging from ultra-high net worth (UHNW) banking, private banking, high net worth banking, personal banking, and down to the normal banking and express segments. The branch network also serves micro and small companies.

At the end of 2018, the Retail Network had 1,796 branches, offering service to over 17 customers (individuals). BBVA Bancomer has also redesigned the structure of its branches, with larger self-direction spaces, so as to improve the customer experience in the following ways: to improve flow within branches; to encourage the use of self-direction facilities for low-value transactions; increase productivity within branches so that our customers can use the new ATMs and practicajas and with a simple click obtain consumer loans or make cash deposits or payments. This not only drives sales, but ultimately provides customers with a better service. The result is shown in the Net Promoter Score, which puts us in the number one spot in the open market.

This is the transversal area of the Branch Network, and has been designed to develop new businesses, technologies and channels to guarantee that BBVA Bancomer will continue to be the market leader, stay at the cutting edge, and be a model bank. The Insurance Business, which is an integral part of the loan portfolio sales circuit, has been placed within this division.

One of the main objectives of this unit is to increase the value of the customer by building stronger engagement, which will also be reflected in greater customer loyalty. We believe that the best yardstick is the paycheck accounts. In terms of portability, BBVA Bancomer has realized that not only is it viewed positively by customers, but also that it has become an attractive bank for new customers. In 2018, 64% of the people who decided to change their paycheck from one bank to another did so to BBVA Bancomer, and, more importantly, 69% did so digitally.

Our focus on digital channels has paid off, allowing us to drive sales; it has also been a great support in post-sales. We closed the year with 7.2 million digital customers, up 36% year on year, while mobile customers totaled 6.5 million at 31 December 2018, up 46% on 2017.

BBVA Bancomer offers services to the business segment through a network of 102 branches.

At December 31, 2018, the corporate loan portfolio amounted to 258,825 million pesos, accounting for roughly 39% of the total commercial loans portfolio. We have managed to maintain the quality of this portfolio, and at December 31, 2018 the NPL ratio stood at 1.5%.

Clients in the business segment are also an important source of deposits, as they mainly use savings and cash management products. BBVA Bancomer offers a broad range of products tailor made to meet customers’ requirements in terms of cash management and collection solutions. Some of the most popular products are: the Integral Bancomer Treasury, which makes it easier and quicker for customers to carry out their financial transactions by installing high-tech software through our website, and Multipayments, a software which has optimized the collection process.

The Business Units have been able to attain all their potential and achieve positive performances due to constant assistance from the Support Units, which allow them to maintain recurrent business results and integral management, providing synergies that fuel further growth.

This area is responsible for maintaining integrity, which is our distinguishing feature as a financial institution, with continuous support in Internal Control matters. This business unit continuously carries out monitoring, follow-up and prevention activities to ensure an adequate business performance in terms of customer processes and internal procedures.

In 2018, the Legal Services area provided support in order to maintain transparency and guarantee that the constant changes in banking regulations are clearly understood and strictly complied with. It also acts as the point of contact for customers’ complaints and demands to the bank so that both parties can have the best options and be mutually satisfied.

This area is responsible for various functions, such as monitoring the institution’s financial performance, relations with investors, analysts and shareholders, cost control, capital management and liquidity, and many more. At BBVA Bancomer we have kept our capital ratios above the minimum levels required by Mexican laws, and have also maintained comfortable liquidity levels to drive growth. Our total capital ratio stood at 15.3% at year-end, while the CCL (Local LCR) (the new short-term liquidity indicator implemented through the new Basel III requirements) was 145.90%.

The bank also achieved a rock-solid income statement in 2018 based on recurrent revenue, cost control and adequate risk management.

Our healthy and stable credit quality indicators are the result of adequate risk management. BBVA Bancomer is famed for being a cautious bank, which has a forward-looking approach to risks. This can be seen in the improvement to the NPL ratio, which shed 11 basis points (bps) to fall from 2.1% in December 2017 to 2.0% in December 2018. Meanwhile, the risk premium has improved from 3.2% in December 2017 to 2.9% in December of this year. The coverage ratio came to 137.0% at year-end 2018.

The Engineering area provides support in the systems and technological platforms for all the bank’s operations, which form part of customer services. It plays a key role in maintaining BBVA Bancomer’s position as the leader in Digital Banking in Mexico. We ended the year with 7.2 million digital customers, 36% more than the previous year, while mobile customers rose 46% over the year to reach 6.5 million customers.

BBVA Bancomer’s exceptional results are only possible because of its magnificent team of skilled and motivated employees. In the Talent and Culture area, we are always on the lookout to try and draw, develop and retain employees. Our corporate culture is based on values and on a total balance between professional and personal development.

These achievements have also generated extraordinary quality of life and an excellent work environment. In 2017, we changed our metric to measure employee feedback and started to use Gallup survey instead of Great Place to Work.

Meanwhile, BBVA Bancomer received for the second year the Wellness Award 2018 from WWPC, for its continuing efforts to improve health and well-being. This year, it climbed further up the table when compared with its standing in 2017.

BBVA Bancomer has its sights permanently set on transformation, to create the best opportunities on the market.

Satisfying the needs of customers is an essential pillar in the ongoing evolution of BBVA Bancomer.

In a bid to align customers’ needs with the Group’s own values, the Unique Experience area was turned into a general department in 2018 to help make the new transformation of the Customer Experience a reality.

During the same year, more than 30 Unique Experience models were implemented across different areas and departments of the Bank, resulting in greater levels of engagement among collaborators and generating extraordinary services that provide better brand perception and more satisfied customers; making BBVA Bancomer a leader when it comes to customer service. The Bank ranked first on the Net Promoter Score index, which is used to gauge customer satisfaction.

Our Unique Experience mission entails:

Unique Experience means achieving excellent customer service and constantly exceeding their expectations. This is how BBVA Bancomer partners and employees develop products and services, which enable the customer experience: We are the Unique Experience and we make it what it is.