This chapter presents our corporate governance structure, designed to ensure transparency and strategic decision-making aligned with the interests of stakeholders. We also address risk management, regulatory compliance, and the promotion of ethical business conduct.
Governance
Corporate Governance
Our governance system is designed to integrate fundamental principles, promote regulatory compliance, and manage both financial and non-financial risks.
Management Structure
Our management team is responsible for making strategic decisions, as well as implementing and overseeing the processes that ensure the optimal performance of Grupo BBVA México.
Structure of the Board of Directors
The governance of Grupo Financiero BBVA México is managed by its corporate governance bodies, including the Shareholders’ Meeting, the Board of Directors, its delegated committees, the General Management, and other officers in accordance with the applicable legal framework.
Thirteen Board members are of Mexican nationality, while the remaining members are foreign nationals. All of them possess extensive knowledge and experience in financial, legal, or administrative matters, have a satisfactory credit history, and demonstrate integrity.
3 At BBVA México, we report the sex of board members, not their gender. In accordance with applicable regulations, we do not have the necessary elements to report on the gender of board members or their belonging to minority groups.
Risk Management
Organizational structure
BBVA México’s General Risk Department reports directly to the Institution’s General Management, thus guaranteeing its independence from the Business Units and allowing it the necessary autonomy to carry out its activities.
Methodological framework:
BBVA México’s balance sheet is visualized, for risk purposes, as follows:
a) Market risk:
Trading and investment portfolios. Negotiable financial instruments, reports and operations with derivative financial instruments for trading purposes.
b) Credit risk:
Companies and Corporations. Traditional loan portfolio, including small and medium-sized companies, as well as exposures for investments in issuances as counterparties in derivative financial instruments.
Consumer. Credit cards, financing plans.
Mortgage. Mortgage portfolio.
c) Liquidity risk:
Banking business. With on- and off-balance sheet positions, including loans, traditional deposits, securities investments, derivatives, wholesale financing, etc.
Compliance
Compliance System
The Compliance function is contained in the System and Statute of the Compliance Function of Grupo BBVA México, which consists of a series of elements that together prevent the risks associated with Anti-Money Laundering, Conduct with Clients, Corporate Compliance, which monitors the standards of ethical behavior expected in the Group, the Protection of Personal Data in our possession and the conduct to be observed in the Securities Market.
This is achieved through compliance programs that include the adequate identification of risks, the design of Policies and Procedures, communication actions, training and the governance model that supervises the application of the Programs in order to establish the standards of ethical behavior to conduct the daily activities and mitigate the eventual risks that may appear.
The aforementioned statute has the following elements that regulate the framework of action of the Compliance Department within Grupo BBVA México.
Grupo BBVA México is aligned with the provisions of the Universal Declaration of Human Rights, the United Nations Guiding Principles on Business and Human Rights and the Global Compact, as part of its commitment to ensure respect for the dignity and rights of all people through the creation of a favorable environment that preserves their well-being and contributes to the integral development of societies in which it operates, helping to generate sustainable actions for the welfare of these communities.
Business Conduct
Anti-corruption and Bribery
We provide our employees with a regulatory anti-corruption course, which is updated every three years. 100% of the workforce is required to complete this course. During 2024, 6,356 employees were trained and informed about BBVA México’s General Anti-corruption Policy4.
Anti-Money Laundering and Terrorist Financing
Strategies
Grupo Financiero BBVA México’s commitment to Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) is a priority objective for the company. To preserve the well-being of the communities in which it operates, Grupo Financiero BBVA works actively in the fight against drug trafficking, terrorism and other forms of organized crime. The strategy is summarized in the protection of the client, the employee and the bank, based on a timely and effective management in the area of AML/CTF and the emerging and associated risks.
4The anticorruption policy is part of the Grupo Financiero BBVA México’s Code of Conduct, which is shared with all company directors and is approved by the Board of Directors at least once a year.
Supplier Relationship Management
Our supply chain consists of national and international suppliers from various sizes and economic sectors, though most operate within the country. Key supplier categories include hardware and software acquisition, consultancy services, outsourced services (such as cleaning and security), civil works, advertising agencies, marketing, licensing, events, among others.
BBVA México 2024 Suppliers
Estimated number of suppliers in the entire supply chain: 7,718
Geographical location of suppliers:
Estimated monetary value of payments to suppliers: Over 72 billion pesos.
Evaluation of BBVA México Suppliers
Grupo BBVA provides its suppliers with clear and transparent information during procurement processes to ensure compliance with legal requirements, taking into account labor and environmental aspects, respecting human rights, and promoting the demand for products and services with social responsibility attributes.
During 2024, we obtained the following results regarding supplier evaluations:
7,718
active suppliers at Grupo BBVA México
4,777
suppliers that entered the evaluation process
3,587
“approved” suppliers
752
suppliers with whom a relationship was started in 2024
100%
percentage of purchases from suppliers who participated in the evaluation process in 2024
1,190
suppliers who did not pass the evaluation process in 2024 (“not approved”)
162
suppliers evaluated based on environmental and social criteria
As part of our commitment to a responsible value chain, we continue integrating ethical, social, and environmental factors into our supply chain. In 2024, of the 752 new suppliers with whom we established a relationship, 162 were evaluated based on environmental and social criteria; that is, 22%.
Additionally, in 2024, aligned with Grupo BBVA strategy, we included the sustainability module in the supplier evaluation process.
Human Rights
Due Dilligence
Grupo BBVA aspires to contribute to the respect for human rights. To this end, it frames this commitment within the Group’s General Sustainability Policy and aligns it with its Code of Conduct (both documents approved at the highest organizational level by the General Management and the Board of Directors, respectively). In this regard, the policy is aligned with the International Bill of Human Rights, the Guidelines of the Organization for Economic Cooperation and Development (OECD) for Multinational Enterprises, and the fundamental conventions of the International Labour Organization (ILO), among others.
Specifically, as outlined in the General Sustainability Policy, Grupo BBVA ensures compliance with all applicable laws and the respect for internationally recognized human rights in all its relationships with employees, clients, shareholders, suppliers, and, in general, with the communities where it conducts its business and activities.
Grupo BBVA identifies the social and labor risks that arise from its activities in the various areas and countries in which it operates, including Mexico, in order to manage the potential impacts generated. This is done through the institution’s regular risk management processes or through existing standards and processes that incorporate a human rights perspective, such as the Equator Principles, for example.