Carlos Hank González
Chairman of the Board of Directors
of Grupo Financiero Banorte
Carlos Hank González
Chairman of the Board of Directors
of Grupo Financiero Banorte
Dear shareholders, fellow board members and employees:
In 2018, despite a challenging climate for our country, Grupo Financiero Banorte achieved record results and became the second largest financial group in Mexico.
Over the course of the year, Banorte reiterated its confidence in the country and became a more socially committed, more inclusive bank…a bank allied with Mexico’s future.
To be a great ally for Mexico, during the past year we became a driving force in regional development and promoter of infrastructure that Mexico so greatly needs today, ably and efficiently completing the merger of Grupo Financiero Interacciones and Grupo Financiero Banorte.
Mexico is the world’s 13th largest economy, but ranks 62nd in terms of infrastructure, which presents tremendous opportunities to our institution that can benefit both our clients and investors.
Being an ally to Mexico also means staying close to every one of our customers.
Through big-data analytics, we went from talking about clients as a group to talking about each client in particular. Today we know better than ever their specific needs, so we can offer them custom-designed products and services.
At the same time, Banorte Mobile, our smartphone app, has brought banking within closer reach for our clients, whenever and wherever they need it.
Beyond technology, people are still what’s most important. With this in mind, we will continue transforming our service model to one of greater proximity to the client, providing a unique experience that builds long-term relations.
Through efforts such as these, we continue to firmly pursue our 20/20 Vision: being the best financial group for our clients, employees and investors.
We grew in every region of the country and in every business indicator.
By the close of the year, we had supported 163,072 families with a loan for the purchase of their own home; we helped 174,213 people buy a car, and we extended loans to 43,531 small and mid-sized enterprises.
We repaid our investors amply for their confidence: at the close of the year, we reported a record growth of 34% in profits, totaling Ps. 31.96 billion in 2018; RoE increased from 17.0% to 20.3%, and RoA from 1.9% to 2.2%, while our cost to income ratio improved from 42.8% to 39.0%.
As part of our commitment to our people, we once again earned Great Place to Work certification, our 8th year in a row with this distinction. The workplace environment in this Group is one of the best in the country, and we have our values to thank for it, along with the importance we place on meritocracy and professional advancement within the institution.
As an ally to Mexico, our purpose is to repay this country and out people for the trust they have placed in our institution.
Through our program Banorte Adopts a Community, this past year, we supported nine communities affected by the September 2017 earthquakes. We fulfilled our social commitment by rebuilding 282 damaged or destroyed homes (on the way to a total goal of 600), and brought more than 13,000 health, culture, nutrition and education initiatives to communities.
Also last year, the President of Mexico entrusted Banorte with the disbursement of his flagship social programs, and as part of our commitment to youth, we will be receiving apprentices in the Young People Building the Future program to train them and offer them further opportunities for development.
In the area of Sustainability, in 2018 we became the only Mexican bank to participate as founder of the Responsible Banking Principles, and we launched a global survey together with the United Nations Environmental Program Financial Initiative.
These principles aim to align the world’s banks with the social goals expressed in the United Nations Sustainable Development Goals and the Paris Agreement on Climate Change.
We confirm our commitment to Mexico in promoting these principles in the country, consistent with this new phase in which we are living, to advance toward inclusive development in areas like quality education, economic growth, reduced inequalities, preservation of our natural resources and mitigation of climate change.
We also obtained Best Corporate Governance recognition from the Mexican Stock Exchange, a distinction awarded to companies with outstanding practices in this field, and we were ratified for inclusion in leading national and international sustainability indexes.
Finally, we continued our Sustainability Committee, which is a benchmark in Latin America, evaluating the environmental and social risks of the credit we extend.
I am convinced that sustainability is a day-to-day job, to make sure we leave to our children the best possible future, one of which we can feel proud of having built with our actions today.
2018 was a year full of challenges for our country and for our institution. With the support of all of you, and the work of our whole team, we achieved record results.
With new challenges ahead for 2019, we must work for an increasingly profound understanding of the context in which we act, the new rules and ways decisions are made.
What is abundantly clear is that we have all that we need to move ahead, and continue growing.
We are confident and prepared to do so, because we have tremendous solidity, the best banking team, and because we have always been able to adapt to the challenges that arise.
The achievements I have just shared with you have strengthened our position today as the best ally for the future of Mexico, and for Mexicans.
We are Mexico’s bank; we are the one who best knows Mexicans, their dreams, their aspirations, and every one of their needs.
All this growth, innovation, and results are increasingly meaningful in light of our social commitment.
We have everything we need to seize the opportunities presented to us, and today, we are proud to say that we are Mexico’s banking ally, today and tomorrow.
Warmly,
Carlos Hank González
Chairman of the Board of Directors of Grupo Financiero Banorte
