HOW WE CREATE VALUE

SRS 102-15 SRS 102-16

“ For GFNorte, generating value means growing our business while at the same time contributing to improve the social and environmental context of our country.”

MODEL FOR CREATING VALUE

our capital inputs
 

Our transformation process
 

MAIN VALUE-ADDED INDICATORS
FOR OUR STAKEHOLDERS

FINANCIAL CAPITAL

  • 17.0% ROE
  • 41.9% Efficiency ratio

INFRASTRUCTURE and TECHNOLOGY CAPITAL

  • 1,148 Branches
  • 7,911 ATMs
  • 165,441 POS

INTELLECTUAL CAPITAL

  • Brand value $1,441 mdd
  • Over 650,000 followers in social networks

HUMAN CAPITAL

  • 29,915 full-time employees
  • Ps 151.6 million investment in training
  • Ps 4.785 billion remunerations to personnel

SOCIAL CAPITAL

  • Ps 3.851 billion in SME financing
  • Ps 5.9 million in mobilized resources for AyuDamos
  • Ps 69 million in donations for the Banorte Foundation

NATURAL CAPITAL

  • 17.65 GJ of energy consumed per employee
  • Comprehensive Energy Control System (SICE) 18.04 million kWh saved Ps 22.03 million saved

This is how we create value

Our business model is focused on customer service. That is why we have focused our 20/20 Vision strategic plan on becoming the best financial group in Mexico and for Mexicans.

This model is based on six major capitals: Financial, Infrastructure and Technology, Intellectual, Human, Social and Natural, in which we have invested to transform and deliver value to our customers.

We measure the contributions of each of these capitals in the generation of value for our business and, at the same time, we make sure we manage them responsibly, strengthen them and care for them in natural, social and human terms.

The following table shows our main lines of business, the associated risks and the main results achieved in 2017, as well as the investment made in each capital with its main impact indicators.

“ We measure the contributions of each of these capitals in the generation of value for our business and, at the same time, ensure they are managed, strengthened and taken care of responsibly.”

CREATING VALUE

LINES OF
BUSINESS		 BUSINESS
ACTIVITY		 IMPACT
ON INCOME		 ASSOCITED RISKS MAIN IMPACT INDICATORS
FOR STAKEHOLDERS
MAIN INCOME SOURCES
DEPOSITS We receive and invest clients’ resources and savings Income from the management of the deposit portfolio   •   •   •
  • Demand deposits: Ps 396.652 billion
  • Term deposits: Ps 193.617 billion
  • Money Market deposits: Ps 58.352 billion
LOANS We grant loans to promote the development of individuals and projects Interest income • • • • • •
  • Commercial portfolio: Ps 137.501 billion
  • Consumer portfolio: Ps 240.899 billion
  • Corporative portfolio: Ps 102.220 billion
  • Government portfolio: Ps 134.905 billion
CHANNELS We offer secure access enabling our clients to manage their resources Income from fees for transactions using channels   •   •   •
  • 1,148 branches
  • 7,911 ATMs
  • 165,441 POS
  • 26,131 correspondents
LONG TERM SAVINGS We offer a wide variety of services to ensure the long-term well-being and tranquility of our customers Long-term profits from investments and management of Long-term Savings activities   •   •   •
  • Afore XXI Banorte: Ps 1.284 billion net profit
  • Seguros Banorte: Ps 2.775 billion net profit
  • Pensiones Banorte: Ps 882 million net profit
INTERNATIONAL BUSINESSES We offer specialized products and services to promote trade on an international level Income from foreign trade activities • • • • • •
  • Uniteller: 616 agencies
  • Banorte Securities: 2 offices
LEASING, FACTORING AND WAREHOUSE Our quality services benefit and support companies Income from offering financial services • • • •   •
  • Leasing & factoring: Ps 771 million net profit
  • Almacenadora Banorte: Ps 42 million net profit
PRINCIPAL CAPITAL INVESTMENTS

FINANCIAL
CAPITAL

 Investment that strengthens our business profitability Improvement in GFNorte’s performance indicators       •   •
  • ROE: 17.0%
  • Efficiency ratio: 41.9%
INFRASTRUCTURE
AND TECHNOLOGY		 Investment in channels and improved technology for our customers Improvement in operating costs that translate
into improved services for our customers		       •    
  • Branches: 130 million transaction
  • ATMs: 349 million transactions
  • POS: 320 million transactions
  • Correspondents: 32 million transactions

INTELLECTUAL
CAPITAL

 Investments in innovation to offer better products and services to our customers Products and services that respond more strongly to our customers’ needs       •    
  • Brand value: $1,441 million dollars
  • Over 650,000 followers in social networks
  • Ingenuity Innovating Program participation: 8,600 employees

HUMAN
CAPITAL

 Investment to attract and develop our employees Payroll, benefits and career development       •   •
  • Full-time employees: 29,915
  • Investment in training and development: Ps 151.6 million
  • Employees’ compensation: Ps 4.786 billion

SOCIAL
CAPITAL

 Investment to provide clients with the best experience and have a positive impact on the development of Mexico Investment and social support to boost the development of communities in which we operate       •   •
  • Financing through support programs for SMEs:
    Ps 3.851 billion
  • Mobilized AyuDamos resources: Ps 5.9 million
  • Banorte Foundation donations: Ps 69 million

NATURAL
CAPITAL

 Investment in resource efficiency and reducing our environmental footprint Optimizing use of resources, improving operating costs       •   •
  • 17.65 GJ energy consumed per employee
  • Comprehensive Energy Control System (SICE) 18.04 millions of kWh saved, Ps 22.03 million saved
2017 Grupo Financiero Banorte. All rights reserved.