ADDING
VALUE

Working Together, We Unleash Mexico's Great Potential
Our goal is to facilitate financial inclusion, so that all Mexicans may have access to a wide range of efficient and competitive financial services

The banking system plays a central role in Mexico's growth and development: it propels investment and consumption, facilitates economic activity, and is an important factor in business competitiveness. Its activities impact millions of families, companies of all different sizes, and individual entrepreneurs. Banking institutions invest constantly, creating jobs and generating significant economic trickle-down in various sectors all over Mexico.

The following are some important figures from 2012:

·P$40.0 billion increase in equity
·50 million clients
·211,085 direct jobs
·P$2.95 billion in deposits captured, 8.88% more than in 2011
·P$2.61 billion in financing, 11.67% more than in 2011
·62.4% of GDP in financial savings
·650,000 micro-, small, and medium enterprises served
·More than 2.5 million microcredit clients
·23,645 correspondent accounts

Our sector is characterized by a high level of competitiveness achieved for the benefit of users, who thereby have access to more and better services, lower costs, and a wider range of options among financial products. The challenge we face is making sure that more and more Mexicans are familiar with and use these services every day, to foster their development.




Internal Environment
Jobs
Permanent creators of job opportunities

The accumulated total of jobs created in the history of the banking system reached 211,085 in 2012. Over the last three years, a total of 50,554 new jobs were created, a record number that represents 24% of the total.

The salaries and benefits of employees of the banking system are above the national average. Combined with the stability and the opportunities for professional development it grants, this makes the banking sector one of the most attractive to work for in Mexico.



Training of Human Capital
The banking sector is extremely active, with constant innovation in products, services, and processes

The banking system has to respond to the ever-changing and increasing sophisticated needs of users, as well as to constant technological dynamism and new trends such as banking correspondents. These circumstances demand highly qualified personnel, so constant training is required. Indeed, there is no better investment for a banking institution.

In 2012, important training programs continued to be implemented in a whole range of modalities: live classroom instruction, e-learning, forums, conventions, internships in offices outside of Mexico, and post-graduate studies, to name only a few.

The subjects covered included customer attention, prevention of over-indebtedness, ethics, money laundering, computer systems and finance, among many others. Workshops were also held to improve the quality of life of employees of the banking sector from a holistic perspective.

Employee performance is evaluated periodically in a highly professional way. As part of a comprehensive strategy, there are career plans and studies to determine specific training needs, in the aim of creating a competitive, world-class human capital.


Investment
The investment made by the banking sector is a reflection of its commitment to the people of Mexico, as it offers added value through the design of better products and services that stimulate financial inclusion

Continual investment is a fundamental part of the banking sector's commitment to Mexico. Investment propels innovation and the design of better services, products, and systems, at the same time increasing the number of bank branches and diversifying means of access, in order to reach more communities.

The possibility of undertaking structural reforms in various areas has become increasingly real. This will make Mexico a more attractive country for investment but it will also create the need to expand financing to all sectors.

Making credit accessible to more families and more businesses generates the possibility of growing through an extensive synergy of demand, employment, and greater investment. In this way, the banking system is committed to the economic development of Mexico.

Economic Trickle-Down
The operations and growth of the banking system and the continual investment of resources represent a significant economic trickle-down that impacts positively many sectors of the country

Bank financing has a multiplying effect on the economy. Not only those who receive loans are benefitted, but all those who provide goods and services to them, in a virtuous circle of economic trickle-down. In 2012, this positively impacted many sectors of the economy through salaries, benefits, and taxes.

Among the sectors benefitted by economic trickle-down are:



Solvency of the Banking System
A solid banking system is indispensable to the healthy growth of the economy and it implies a heavy social and economic responsibility

Unlike the financial systems in certain developed countries, the Mexican banking system is robust and well capitalized. This is the result of the prudence, experience, and responsibility of senior management, as well as efficient regulation, which is scrupulously adhered to.

Economic growth requires the appropriate handling of risks. The Mexican banking system meets this requirement and in this way lays the foundation of its sustainability.







As of 2013, the minimum Capital Ratio in accordance with Basel III is 10.5%.

External Environment
Savings
A country that encourages savings works for its future wellbeing and finances its present with solvency

Savings represent one of the basic pillars of economic development and social wellbeing. The Mexican banking system has undertaken a notable effort to increase access to banking services through a strategy articulated around three main axes: the development of new saving instruments, increased access to saving mechanisms for segments of the population without banking services, and financial education.

One of the greatest advantages of fostering saving, especially in segments of the population that are outside the formal financial system, is the security it affords. The creation of a credit history makes it possible to gain access to other benefits and more services and to achieve a higher level of personal and family wellbeing.




Credit
Credit is an accelerator of growth and wellbeing for society. The challenge of the banking sector is to make credit available to an ever larger number of Mexicans

The strength and stability of the economy and the job market, combined with the solidity of the banking system and its robust procedures of credit analysis, have driven the sustained growth of financing in Mexico, which increased by 12% in 2012.






Interest Rates
A competitive market and the stability of the principal economic variables in Mexico explain the downward trend in interest rates

A reduction in the cost of money has a positive impact on both bank customers and the general population. Low interest rates encourage a demand for financing of all kinds of projects, from major infrastructure to consumer loans.

The interest rates of different kinds of loans have shown a significant downward trend in recent years. At the end of 2012, more than 72% of the banking system's loan portfolio had a weighted average interest rate of 9.4%.




Customers
Our goal is to offer more efficient banking services to more and more people

At the end of 2012, we achieved the record number of 50 million customers served. This has been possible only through the diversification of the banking system into other segments. It was particularly important to have attracted young people and people without formal access to banking services, since both of these segments have awakened the interest of the banking sector, which has invested in infrastructure, training, financial education, and promotions aimed at these important markets.

Thanks to its vision, the banking system has grown to work with entrepreneurs, small and medium enterprises, and other service providers without fixed salaries, all of whom have benefitted from access to financial products and services.









Technology in Financial Services
The use of state-of-the-art technology means greater efficiency for people and businesses: significant savings of time, paper, and energy

Online banking is becoming ever more important and more widely popular with customers, due to its practicality and convenience in many aspects: it saves time in trips to the bank and administrative procedures, as well as paper and energy, generating a significant in the carbon footprint of the banking system, particularly in terms of greenhouse gas emissions. In this way, the use of technology translates into social, economic, and environmental benefits.

In 2012, 960 million electronic transfers of funds were made online, reflecting a trend of sustained growth.



Coverage
The investment of resources has enabled the banking system to achieve greater coverage, so that all Mexicans may have access to banking services

The coverage provided by banking institutions in Mexico has expanded as never before. The network of correspondent accounts is one of the pillars of a strategy of financial inclusion that allows a larger number of Mexicans, especially in remote areas, to enjoy access to financial services.

The capture of deposits by owners of small commercial establishments and their regulation have contributed to this expansion in the coverage of financial services.

Banking correspondents allow users to perform mainly the following transactions at any service point:

·Deposits
·Payment of services
·Payment of loans
·Opening of savings accounts
·Cash withdrawals

These are some of the advantages of banking correspondents from the economic, social, and environmental perspectives: