The highlights of 2009 for the various business units are outlined below:
Commercial Banking has maintained positive growth in lending to SMEs and retailers, up 21.7% year-on-year. This has been the result of a loan guarantees scheme granted by Nacional Financiera, the federal government development bank. Towards the end of the year, the innovative Tarjeta Micronegocios (micro-business card) was launched to seek a better source of financing for micro-businesses. Because it is backed by Nacional Financiera, this credit card is low risk and allows for improved management of cash flows. At the same time, it separates personal finances from business finances and optimizes the use of methods of payment.
In an attempt to boost low-cost deposit gathering, the traditional Quincenas del Ahorro (fortnight savings campaigns) were carried out, and more than 1.2 million prizes were handed out. The Engrandece tu Negocio (expand your business) campaign was carried out for SMEs, with 24,000 winners and balance increases of nearly €317 million in one month.
The unit has continued to reinforce itself to maintain a high level of customer service quality. This is reflected in the growth of productivity by 10.2% year-on-year, as well as in the improvement in the indicator for line waiting time, which increased 0.37 points to a score of 8.28 in December 2009. Finally, Euromoney magazine granted BBVA Bancomer wealth management the title of Best Private Bank in Mexico.
The Consumer Finance unit rolled out the permanent program Paga bien, Paga menos (Pay well, pay less), which rewards customers who make payments on time. Likewise, support programs for clients with trouble paying with credit cards. More than 500,000 customers have already taken advantage of these initiatives. In December, the Pásala Festejando (Celebrate) campaign was launched with the issuing of the Special Edition 40th Anniversary credit card, which helped increase fourth quarter income by 14.3%. BBVA Bancomer also forged an alliance with Ford, making it the largest auto finance provider in Mexico.
Government & Corporate Banking has a specialized network of 81 branches for companies and 37 for government clients. This unit serves more than 37,000 clients, 66.2% of which have five or more product families. The customer base was expanded by nearly 6,500 clients in 2009. This has meant a 46% increase in productivity of the network regarding the distribution of products with greater added value. This range of products includes the launch of Cobranza DEM (Business Deposits) which improves collection solutions for clients through online receipt of cash. This program has increased operative efficiency, deposits control and reduces the level of fraud.
Mortgage Banking has developed a new product for individual clients called Bancomer Cofinanciamiento AG (co-financing) that allows the borrower to increase his or her borrowing capacity. In 2009, the unit maintained a great level of dynamics in business activity, as reflected in the strengthening of its leadership position. Also, three out of every ten new individual mortgages have been granted.
Corporate and Investment Banking has marketed new products for meeting the needs of corporate clients, such as Bancomer Integral Treasury and Integral Treasury Service that enable greater management of transactions in cash and checks. This unit has participated in important transactions in wholesale markets. Some have included: the global coordination of a syndicated loan for $1,500 million for Americas Mining Corporation (subsidiary of Grupo México), two fixed-income issuances of Grupo Telmex, for €423 million and €264 million each, in which Bancomer participated as lead bookrunner, and the loan to Grupo Bimbo, for $2,300 million for the acquisition of a company in North America.
In Asset Management, the first socially responsible fund in Mexico was launched, B+EDUCA, which allows interested investors to donate profits generated to the BBVA Bancomer Foundation’s education program Los que se quedan. This fund has captured funds totaling €65 million, more than 4,900 investors and returns of 3.2% at the close of December 2009.
Global Markets has placed two warrants on the Standard & Poor’s 500 index, with a 1-year maturity, when the terms of these instruments have traditionally been under three months. It has also placed a structured note for €106 million for 5 years, allowing BBVA Bancomer to close the year as the leader in the segment, with 36.8% of the market share.