We are living in an era of unprecedented acceleration in digitalization, decarbonization of the economy and social inclusion, and in that context our great objective is to help our clients in the transition to a sustainable future, while being responsible to our collaborators, suppliers, the community and the environment.

We are committed to Grupo BBVA’s strategic priority of supporting its clients with advice, financing and the implementation of transition plans, for all segments and sectors that the bank serves. In response, at the close of December 2023, BBVA México channeled more than PS. 206 billion in sustainable financing, 28% more than in 2022. This figure includes our participation as placement intermediary for more than Ps. 61 billion in green and social bonds. In addition, this year we accompanied the issuance of the first blue bond in Mexico.

By the end of 2023, BBVA México channeled more than 206 billion pesos in sustainable mobilization, 28% more than in 2022.

We work so that the role of banking goes beyond financing: organizations and individuals need knowledge and tools to help them make informed decisions and keep their finances healthy. In 2023, Financial Education reached 21.2 million beneficiaries with its entire program, highlighting that in the year we benefited more than 97 thousand unique people through distance and face-to-face workshops. We also promote the financial health of our clients through tools for expense control, credit management, savings and investment planning.

As part of our commitment to our employees, we prioritize the well-being of the more than 47 thousand employees of BBVA México through compensation and benefits that exceed those provided by law. We implement programs inspired by best labor practices that include the promotion of physical, sports and cultural activities, as well as the creation of safe, diverse and inclusive work spaces.

In 2023, 50.76% of our workforce was made up of women, and we employed more than 260 people with disabilities. This year we also began to set up lactation rooms in branch offices, in addition to the lactation rooms in buildings and corporate offices, bringing our total number of safe spaces for women to 129. Thanks to these efforts, in 2023 we were recognized in the first edition of the Merco Talento ranking, obtaining first place in the financial sector and second place overall of all the companies ranked.

In 2023 we were recognized in the first edition of the Merco Talento ranking, obtaining first place in the financial sector and second place overall of all the companies ranked.

From Fundación BBVA, this year we shared with great enthusiasm the opening of our first SER School, which aims to provide excellent education to students living in socioeconomically vulnerable contexts, at no cost to their families. The school opened its doors in the municipality of Acolman, State of Mexico, an environment where nine out of ten families face economic challenges and where only one out of ten inhabitants complete university.

We contribute to the community through educational, cultural, and social programs that promote the integral development of society. In 2023, we provided scholarships to more than 50 thousand students through the Inspiring Young Boys and Girls program, and to more than 2 thousand students through Inspiring Young Boys and Girls with Disabilities.

We continue to work on integrating sustainability criteria into the supplier evaluation process. 100% of our purchases in 2023 were made with suppliers that have been evaluated under financial and non-financial criteria. In addition, the percentage of our suppliers geographically located in Mexico amounts to 94.76%, thus contributing to the local economy.

Committed to climate action and natural capital, in 2023 we launched the 1st edition of the BBVA National Sustainability Challenge, a bank initiative that seeks to find a viable solution to reduce the socio-environmental problem of sargassum in the Mexican Caribbean. This year we also made the carbon footprint calculator available to 100% of the users of the BBVA México App, which in addition to measuring the emissions generated per user, offers information, news and useful tips to build habits that help protect the environment.

In relation to the management of the environmental impact of our operations, this year we achieved 11 ISO 14001 certified buildings for Environmental Management Systems and eight LEED certified buildings. In addition, we offset 100% of our carbon emissions and 100% of the electricity purchased came from renewable sources.

100% of the electricity purchased came from renewable sources.

In 2023, BBVA México maintained its commitment to the Ten Principles of the United Nations Global Compact and the Principles for Responsible Banking of the United Nations Environment Program Finance Initiative. Also, our subsidiary BBVA Pensiones México continues to work on the implementation of the Principles for Responsible Investment, incorporating environmental, social and governance (ESG) factors into its policies and processes. Through these initiatives we contribute to the generation of long-term value from the financial system.

We thank the clients, employees and other stakeholders who rely on our decisions to continue creating opportunities and recognize those who are committed to the transition to a sustainable future with no one left behind.

We reaffirm our commitment to society and to our clients, contributing to economic and social progress by consolidating our position as the leading financial institution in the country, forcefully executing our strategy focused on digitalization, innovation and sustainability. Also, we have the best and most committed team, demonstrating our commitment to the values and principles that we have in the bank, which distinguishes us as a company deeply connected to its clients and that continuously strengthens its service culture.

At BBVA México, we recognize our responsibility to contribute to the country’s development, serving as a crucial catalyst for economic growth. With this understanding, we prioritize the prudent allocation of credit, facilitating and fostering the realization of medium- and long-term aspirations for both Mexican families and businesses. We remain steadfast in our mission to “Make the opportunities of this new era accessible to all.”

We are pleased to announce that as of November 2023, we have maintained our leadership position with a market share of 24.7%, according to data from the National Banking and Securities Commission (CNBV). Furthermore, our total portfolio has exceeded 1.6 trillion pesos, marking a substantial year-on-year growth of 10.6%.

10.6% growth in total portfolio compared to the previous year.

The commercial portfolio reached Ps. 896 billion, equivalent to an annual increase of 8.2%, reflecting the good performance of corporate loans and the business segment. A very important part of our strategy is the SME segment, key to the country’s development, where we have reached a portfolio of Ps. 113 billion, a 19.0% increase over the previous year. During 2023, we continued to promote the “Banca de Barrio” (Neighborhood Banking) strategy, which has allowed us to serve small businesses within a delimited perimeter around the branch to attract a greater number of clients and generate closer relationships, improving the service experience through a wide range of specialized products for this segment. To this end, since its launching, we have had 292 thousand new clients, placed 200 thousand new POS terminals, attracted 733 thousand new payrolls and, as an advisor to small businesses, we have also promoted the placement of insurance policies for more than Ps. 3,475 million to insure various types of damages.

During 2023, the dynamism of private consumption was decisive; loans to families showed an increase of 13.7% annually, reflecting the constant promotion of our digital strategy and aligned with the country’s solid economic growth. In detail, consumer and credit card loans, which together recorded an increase of 17.9% in annual terms, stand out. Meanwhile, housing finance continues to show solid dynamism, with a balance 8.8% higher than in 2022, which allows us to continue to place 1 out of every 4 mortgages in private banking.

In terms of asset quality, the non-performing loans ratio stood at 1.7% at year-end, one of the best indicators in the system, demonstrating the soundness of our robust risk models. The coverage ratio stood at 196.4% at the end of 2023.

In terms of deposits, we continued to grow our bank deposits (demand + time deposits) by 5.4% year-over-year, showing a good performance in both demand and time deposits, which grew 5.2% and 6.6%, respectively. Furthermore, we’ve upheld our strategy of offering our clients a diverse array of products tailored to their profiles and the prevailing yield environment. This approach has contributed significantly to the substantial growth in our mutual fund volumes. With all of this, BBVA México consolidates its position as leader in bank deposits, with a market share of 24.1% according to public figures from the CNBV at the end of November 2023.

Non-performing loans ratio of 1.7%, demonstrating the soundness of our robust risk models.

It is important to mention that we comfortably met the minimum required capitalization and liquidity indicators; thus, BBVA México’s capitalization ratio was 18.3% at the end of December 2023, comprised of 15.7% core capital and 2.6% supplementary capital. The short-term indicator, defined as the Liquidity Coverage Ratio (“LCR”), stood at 162.6%.

+3,500 million financial transactions in 2023, 65% of which were conducted through digital means.

During 2023, BBVA México will continue to transform the banking industry by continuing to improve and innovate our products and services in a highly competitive environment. This is reflected in the number of financial transactions, which exceeded 3,500 million transactions at the end of 2023, 65% of which were carried out through our mobile app or website.

This has allowed us to achieve 76.8% del total de las ventas sea realizado a través de alguno de nuestros canales digitales.

This has allowed us to achieve 76.8% of total sales in BBVA México through one of our digital channels.

In this regard, leveraging both our physical and digital platforms, we’ve experienced a 7.8% increase in our client base, culminating in a total of 30 million clients by year-end. This growth underscores the success of our financial inclusion strategy. In BBVA México we reaffirm our commitment to society, which is why during 2023 we launched the first School for Inspiring Young Boys and Girls, with the first generation of 60 first grade students in economically vulnerable situations, the school aims to provide education of excellence by developing skills, promoting critical and reflective behaviors and bringing more children and young people closer to the consolidation of their dreams. To mention some of the benefits of the school, the following are some of the most important ones: free education of excellence from elementary school to high school, extended hours, balanced nutrition, English teaching approach and character formation.

The “BBVA Scholarships for Inspiring Young Boys and Girls with Disabilities” supports the educational and labor inclusion of 2,000 recipients in the 2023-2024 cycle. During 2023, it added 263 employees with disabilities to its workforce.

To carry out both projects, Fundación BBVA México relies on the trust of 16 thousand employees and more than 400 thousand clients, who thanks to their donations make it possible to successfully carry out these initiatives, as well as the support of more than 6 thousand mentors who are volunteer collaborators of the institution who accompany the recipients in their training. BBVA México has supported the education of young people in Guerrero through the Juntos por la Educación (Together for Education) program, where it has allocated PS. 112 million as seed capital, giving continuity of education to more than 30 thousand middle and high school students.

In terms of BBVA México’s actions to promote sustainable transformation with a focus on climate change, the institution mobilized Ps. 153,598 million in 2023 and Ps. 52,894 million in actions that promote inclusive growth. BBVA México and Nestlé, through their collaboration agreement, will promote the transition to sustainability for up to 1,500 agribusiness suppliers.

30 million clients by year-end.

BBVA México was recognized in the Net Promoter Score (NPS) with more than 70 points (out of a total of 100), and registering a difference of 26 points against the closest competitor, this for its quality of service from the client’s perspective.

In 2024, we will continue our commitment to provide exceptional service to families, individuals, companies and governments, always keeping in mind that we are a company of people for people. We will also continue to work on the transformation and innovation that characterizes us so much, emphasizing renewed client service by offering products that are tailored to meet real needs, with agile and efficient processes. We will take advantage of global trends, such as digitalization, to contribute to building a more inclusive and sustainable company.

We thank each member of our team for their dedication and hard work during 2023. We celebrate the opportunity to excel and continue to be a fundamental support for our clients and the country in the year ahead.

Together, let’s continue to create opportunities!