BBVA | Estrategia

Business units

Retail network

The Retail Network business unit manages the entire branch network, serving a variety of individual customer segments: Ultrahigh Net Worth, Private, Wealth and Personal to the banking and express segments. This unit also serves micro and small businesses.

476,448 new payrolls in Grupo Financiero BBVA México. In the digital area, 69.9% of total sales were made through an alternative channel to the office.

Government and Commercial Banking

With the aim of increasing cross-selling opportunities, the level of customer loyalty and improving experiences, this unit offers services and specialized attention to customers in the following customer segments:

Business Entities: with savings, credit, cash management and collection solutions. Through the BBVA Empresas App, it is possible to manage and administer the business from your cell phone and, in addition, through this medium a wide variety of services and digital offers are offered.

Home Developers: offers loans to developers for construction purposes.

Consumer Financing: within banking, this specialized unit was created exclusively to meet the diverse requirements of the automotive industry, including loans for the distribution and acquisition of vehicles, and is also part of Corporate and Investment Banking, since it provides services to meet the financial needs of car dealers.

Government Entities: Grupo Financiero BBVA México offers specialized and tailored service to meet the needs of the Mexican Federal Government, the States and Municipalities of Mexico and other government agencies. The wide range of products for this segment includes paycheck services for government employees and checking accounts, as well as tax collection and payment services for States and Municipalities through products such as “Multipagos” and “CIE online”.

Corporate and Investment Banking

Grupo Financiero BBVA México offers credit products and services to corporate and institutional customers, mergers and acquisitions services, market transactions (equity and fixed income), cash management, online banking and investment products. Bankers in this unit strive to ensure that customers receive the best service tailored to their needs.

Corporate and Investment Banking also includes the global markets unit and, in association with the Broker-Dealer, Grupo Financiero BBVA México offers more sophisticated products and services for individuals and companies, such as public offerings and debt and equity issuances and structured financing, among others. It stands out that GFBB has headed the SHCP and Banco de México classification of market makers since 2012.

Strategy

Strategic priorities

BBVA has established six strategic priorities that will accelerate and deepen the transformation of the Group in the coming years:

Improve the customers’ financial health

Through technology and the use of data, Grupo Financiero BBVA México offers tailored advice to its customers in order to contribute to their financial health. GFBB approaches this strategic priority from two main perspectives: allowing an understanding of customers’ income, expenses, future needs and savings capacity, and advising them on achieving their medium- and long-term life and business goals.

Help customers in transitioning to a sustainable future

Grupo Financiero BBVA México aspires to contribute to climate action and inclusive growth of its customers to support their transition towards a more sustainable future. Through responsible financing, advice and innovative products and services, GFBB contributes to the significant investments needed to accelerate the energy transition.

Grow in customers, to drive profitable growth

Grupo Financiero BBVA México seeks to focus its efforts on the most profitable products and segments, and for this reason, it will focus its operations over the next few years on payments, insurance, asset management, value segments such as SMEs and private banking, and Corporate and Investment Banking (CIB).

Pursue operational excellence

Grupo Financiero BBVA México recognizes the importance of focusing on transactions with the greatest added value for the customer in order to provide the best experience. This priority involves guaranteeing easy access to its products and services, transforming the relationship model through automation and increased productivity, always remaining under optimal management of financial and non-financial risks.

The best and most committed team

The BBVA team is a strategic priority for GFBB, which is why it seeks to form a diverse and empowered workforce, with a differential culture that internalizes the purpose and values of the Group, while providing growth opportunities for all.

Data and technology

Grupo Financiero BBVA México is aware that technology and data analysis are fundamental pieces to create high-quality differential solutions. For this reason, it continues to advance to develop an increasingly robust security and privacy model.

Sustainability strategy

BBVA’s sustainable development strategy is based on the Principles for Responsible Banking that are part of the United Nations Environment Program Finance Initiative (UNEP FI). BBVA is committed to the Principles of the United Nations Global Compact and in 2016 made its commitment official to meet the objectives established at the Paris Summit and the United Nations Sustainable Development Goals (SDGs).

Sustainability is one of the Group’s main strategic priorities at a global level. By 2025, BBVA will double its commitment and sustainable goal to EUR 200 billion in financing for sustainable initiatives.

In 2021, Grupo Financiero BBVA México financed a total of EUR 2,960.01 million in climate change and EUR 618.43 million in inclusive growth, totaling EUR 3,578.44 million.

During 2021, Grupo Financiero BBVA México increased sustainable financing by 373% compared to the previous year.

Strategic Pillars of Responsible Banking of Grupo Financiero BBVA México

The Responsible Banking model of Grupo Financiero BBVA México is applied to all business and support areas, with the aim of seeking a profitability adjusted to principles, strict compliance with the law, good practices and the creation of long-term value for all stakeholders.

Responsible customer experience
Balanced relationships with its customers, based on transparency, clarity and responsibility.

Responsible commitment to the employee
Responsible practices with employees, suppliers and other interest groups.

Sustainable finance
Actions to combat climate change, respect human rights and achieve the SDGs.

Investment in the community
Promote social change and create opportunities for all.

General Sustainability Policy

The General Sustainability Policy defines and provides for the general principles and management objectives in terms of sustainable development. It also seeks to promote the development of sustainable solutions and identify opportunities and offer advice to private customers and companies. It provides for two main focuses of action with respect to sustainability:

Climate change

Categories of business initiatives:

Energy efficiency

Circular economy

CO₂ reduction

Social, inclusive and sustainable development

Categories of development initiatives:

Facilitation of access to financial services for unbanked groups through basic digital solutions.

Inclusive infrastructures, including basic services and transportation systems.

Support for entrepreneurs, and promotion of economic growth and full and productive employment.

Economic impact

Evolution of the activity

In 2021, we managed to consolidate our leadership position in the performing portfolio with a 23.7% market share. This reflects an annual increase of 25 bps according to CNBV figures.

On the other hand, loans to individuals showed an annual increase of 8.6% as a reflection of our digital strategy and the gradual economic recovery during the last quarter of the year. In detail, consumer loans and credit cards stand out, which together registered an increase of 7.6% in annual terms. Housing financing continues to show solid dynamism with a balance 9.7% higher than in 2020, which is why we continue placing one in four mortgages in private banks.

Total Performing Portfolio

(MXN Billions)

Mortgage Portfolio

(MXN Billions)

Bank Deposits

(MXN Billions)

A 10.6% Increase in bank deposits¹ in annual terms.

¹Bank deposits = Demand + time.

Grupo Financiero BBVA México consolidates its leadership position by registering a market share in bank deposits of 23.6%, according to public figures from the CNBV at the end of 2021.

Evolution of results

At the end of the year we have generated a net profit of MXN 65,502 million, equal to an increase of 52.8% compared to 2020. The foregoing is mainly explained by an improvement in the financial margin due to the growth of the portfolio in more profitable segments, as well as lower cost of deposits driven by our reasonable funding mix, releases of reserves created in 2020, and our strict control in expenses.

The financial margin in the year shows a 5.2% growth with respect to the previous year, driven by the economic reactivation of the country and the constant growth of the portfolio.

Net Income

(MXN millions)

Material information

Indicators (%)

	GFBB	Market*
Return on equity (ROE)	22.2	16.7
Net Interest Margin	5.2	4.9
Efficiency ratio	36.7	47.2
Delinquency rate	1.7	1.6

*Financial Groups Market includes: BBVA, Banorte, Inbursa, HSBC, Scotiabank, Santander and Citibanamex.

Materiality analysis

During 2021, Grupo Financiero BBVA México conducted a new materiality analysis to identify relevant economic, environmental, social and governance issues that could have any type of impact on the sustainability of GFBB and its stakeholders.

The result of this analysis is the identification of 15 material topics for Grupo Financiero BBVA México, each one contains specific topics and they were grouped into the four strategic pillars of Responsible Banking of Grupo Financiero BBVA México and two additional pillars –strategy and reputation management–, in order to reflect how they impact the Bank’s strategy and vice versa. The pillars of Responsible experience with the customer and Responsible commitment to the employee cover issues related to the duty that Grupo Financiero BBVA México has towards all the people who make its sustainability possible over time. Sustainable finance and Investment in the community include topics relevant to a responsible business and the impact that Grupo Financiero BBVA México has in the social and environmental spheres.

Top 15 - 2021