2019 Anual Report
Financing to Priority Sectors
- Tourism
The tourist industry moves the world economy, contributing to our country’s development in a direct, indirect, and induced way, affecting the value chains and contributing to PIB and employment.
Considering the contribution to the economy of this sector and its transversely impact, Bancomext improved its touristic sector model by focusing to develop investment projects, relating and identifying investment agents and touristic competitive points, also the places were the hotel facilities to host busines, health and beach tourism. As a result of this strategy, the direct credit portfolio in Bancomext to touristic investment is integrated by projects in 27 states in the country.
Bancomext, together with the Trade Bank, implemented the program “Improve your hotel”, which was announced in April 2016, and has the purpose of modernizing the hotel infrastructure. This program gives support to the sector through the Trade Bank with credit as high as 60 million pesos with competitive interest rate, appropriate terms that allow the development of the investment projects, but most importantly with the support of BANCOMEXT.
Likewise, for the credits higher that 60 million pesos, they are supported directly in the first area by the Companies Bank. Ever since its implementation until the first semester of 2019, through the “Improve your hotel” program, 191 credits have been authorized in first and second-tier for 5,456 million pesos.
In the 2019 companies related to the Tourism sector received a loan for 14,700 million pesos, which represents an increase of 8.4% in contrast with the previous year. This financial aid is the first and second-tier. The amount of companies that received a credit were 2,246.
The credit loans given in the touristic sector in the firs-tier in 2019 allowed to finish 1,700 new rooms in different places across the country. This represents the creation of more than 2,500 new direct and 5,000 indirect jobs.
The credit applied in the first-tier contributed to enhance companies in 27 different states: 44% in the south, 37% in the pacific and 13% in the center.
The 2019 first-tier portfolio indicators were:
- Within the energetic sector, the touristic portfolio was the second most important with a total balance and the most important in the counterpart numbers in the total portfolio balance of the private sector in Bancomext. The terms of balance represented the 16.2% of the total portfolio from the private sector first-tier of the DGA of the Corporate Banking, equivalent to 32,066 million pesos, which represented an increase of 4.1% in contrast with 2018, which was of 30,736 million pesos
- The sector portfolio generated the biggest number of benefited companies in the closing of 2019, equivalent to 114, which represents the 22.5% of the amount of benefited companies in the Corporate Banking DGA.
- The portfolio of the sector generated an important contribution to the income by financial framework and first-tier portfolio commissions in the Corporate Banking with 812 million pesos., equivalent to 16.3% of the total amount, reflecting the profitability and quality of a counterpart diversified portfolio, segments, regions, with the long term duration.
- The use of the resources during 2019 raised to 11,137 million pesos.
In the closing of December 2019, the sector closed with a favorable prospect portfolio with a balance of 24,774 million pesos with 55 projects under study.
2. Export Industry (Industrial plants)
The real estate industry sector has an outstanding performance in the last few years, hence, Bancomext continued offering specialized products for the development of industrial infrastructure in the country, fostering the foreign investment, the employment growth and currency creation.
During 2019 Bancomext diversified the industrial plant portfolio with sustainable office projects. The industrial plants segment investments were given to public vehicles.
On the matter of industrial infrastructure, Bancomext continued with the real state trusts (FIBRAS) that has industrial properties in the country. The role of Bncomext with this type of projects gives confidence to international banks to invest in Mexico.
The portfolio indicators in the closing of 2019 were:
- The third biggest balance portfolio contributed with 32,066 million pesos, which represented the 16.2% of the balance of the first-tier portfolio.
- The portfolio in this sector generated the biggest contribution in the financial framework with the most commissions with an amount of 578 million pesos, equivalent to 11.6% of the total first-tier income of Bancomext.
- The number of benefited companies were 96, contributing 19% to the number of companies benefited in a direct way, becoming the second biggest sector portfolio.
- The placement of resources for the granting of financial support was 5,485 million pesos.
In the closingof 2019, the sector had a prospect line of 10,304 million pesos with 35 case studies.
3. Automobile industry
Bancomext continued giving aid to one of the sectors with the biggest share in the trade balance in Mexico, the Automobile industry, granting financial aid to companies and having value chains in the sector, enhancing the presence of Bancomext as a political and economic tool to boost the country’s development.
Among the main loans granted to the sector are the increase of credit given to a tire multinational company, trucks and racing cars, planes, agricultural machines and heavy machinery; in San Luis Potosí with 3,773 million pesos aid with the purpose of complementing the foreign investment of the company in Mexico, trough the establishment of a tire high value industry plant HVA (High-Value-Added), for the distribution of North and Latin America; boosting the value chain and generation of more than 4,000 direct and indirect jobs.
In this way, Bancomext gives service to a value automobile chain in every level, fostering the development in the national supplier and the growth on the plant.
The portfolio indicators in the closing of 2019 for the sectors were:
- The portfolio balance reached an amount of 12,216 million pesos of the first-tier total portfolio balance of the private sector.
- The placement of resources during the period was 20,116 million pesos, with a contribution of 15.7% to the Corporate Banking, becoming the second biggest placement inside the credit portfolio in the DGA of the Corporate Banking.
- The number of companies benefited was 44, a figure that represented 9.0% of the total companies benefited directly in the DGA of Business Banking.
- The sector generated 239 million pesos financial framework income plus commission.
- The potential operation portfolio in this sector were of 3,559 million pesos with 18 projects under study.
4. Transport, Logistic and Aerospace Industry
During 2019, Bancomext continued giving support to this sector, mainly in favor of national airlines for the modernization and growth of the fleet with structured and unionized operations, which allowed a better connection inside the national territory, benefiting the passenger.
Among the main loans in this sector are:
The investment for a new plant in Santa Catarina, Nuevo Leon, for a company dedicated to manufacturing plastic automotive parts, generating 90 new direct jobs and incorporating national suppliers in its value chain trough loans of 641 million pesos.
The funding and construction of a new aerospace plant in Hermosillo, Sonora, trough loans of 1,917 million pesos. This plant will have the purpose of the manufacturing of high standard precision for plane turbines with “LEAP” technology, GE technology with fuel consumption efficiency, as well as the renewal of current turbines, generating 300 direct jobs and 500 indirect ones.
The funding for the modernization and growth for the second biggest airline in Mexico, which would create a better connection withing the national and international territory. It is worth mentioning that the unionized and structured transaction in aid is 1,632 million pesos.
It is also worth mentioning the funding of an oil company for 2,367 million pesos for construction and acquisition of new watercraft, with a new contract by PEMEX in support of the hydrocarbon sector.
Additionally, Bancomext is part of the National Committee on Productivity, and plays a role with other government and private bodies, fulfilling directions from de government presidency to improve the Productivity and Competition in the Aerospace Sector.
The portfolio indicators of 2019 were:
- This sector generated the biggest first-tier resource contribution in Bancomext, with a balance of 29,640 million pesos, which represented the 23.1% of the total amount.
- The sector presented a portfolio balance of 13,921 million dollars, 13.5% more that last year (12,263 million pesos).
- The sector’s portfolio generated a financial framework (plus commissions) of 317 million pesos and benefited 33 companies.
- The portfolio of potential operations in the closing of December was 5,564.8 million pesos with 20 projects under study.
5. Conventional and Renewable Energy
Bancomext has boosted the energy sector through medium and long-term funding for the development, construction and starting of sub-sector projects with the energy generation of “Oil & Gas”.
In this sense, Bancomext, in attention of the main strategies of the Federal Government, in 2019 continued supporting the clean energy projects (wind, photovoltaic) to foster the use of renewable energy sources that help the goals set by the country. Additionally, Bancomext supported the use of energies that have better energetic efficiency.
Bancomext shared the funding of an Italian multi-national solar panel system that operates in the renewable energy market, which generates ~1000 MW to the national electrical system.
Bancomext shared the funding of 6 projects from a small French company that participates in the field of generation and distribution of electricity, natural gas and renewable energies, that represents 721MW of renewable energy and required and thorough financial structure.
Bancomext had a role in the first reservoir-base funding in Mexico. A project of an Egyptian company that won the exploration and extraction Cardenas-Mora contest; also considered as the Pemex’s partner. The project belongs to the first farm outs round, it is the first time Mexico has a role in this type of investment that are common globally in mature national economics.
The main results in the closing of 2019 were:
The portfolio balance in this sector was 32,113 million pesos, an amount that represented 16.3% of the total balance of the first-tier private sector portfolio, making it the most important portfolio of the bancomext sector programs. It also presented an increase of 12.4% compared to the same period of the previous year, which was 28,565 million pesos.
- This sector portfolio generated, by financial framework plus commissions, 918 million dollars. It is the most important portfolio in the main sectors with a contribution of 18.5% of the total of income generated by Corporate Banking. As well as a 21.2% growth in contrast with the previous year, which was 757 million pesos.
- Placement terms, this sector reported 17,134 million pesos, with a contribution of 13.3%; placing it as the third most important in the strategic sectors.
- The companies benefited were 69 and their prospect line was 22,477 million pesos with 64 projects under study.
6. Telecommunications
During 2019, Bancomext strengthened the support to companies that gave information and communication technology services.
In the closing gof 2019 this sector had a balance of 10,101 million pesos; 12.7% more than last year (8,962 million pesos). In terms of placement, reported 1,801 million pesos; income for 275 million pesos and 6 benefited companies.
7. Electrical- Electronics
During 2019, Bancomext remained supporting competitiveness and growth in companies that have a role in the electronics and electrical sector in manufacturing processes and other services that are included in the exporting chain. The portfolio for this sector had a first-tier private balance of 6,896 million pesos, spending of resources of 1,860 million pesos, 6 benefited companies by financial framework plus commissions of 129 million pesos.
8. Other sectors
The role of the Regional Management Offices of the Corporate Banking is crucial in the attention of the new sectorial approach established by the top management. This implies that their promotion efforts are directed to foster exports, substitute imports and increase the national integration level; generate chain values, as well as the growth and geographic expansion.
The results in this new approach are:
Financial result balance of 66,177 million pesos, which represented the 33.5% of the total first-tier private portfolio balance.
The financial resources placement was 41,406 million dollars, with a contribution of 32.2% of the total first-tier amount.
The income by financial framework contribution plus commissions was 1,649 million pesos, which represented 34% of the total income amount.
The companies benefited from other industry sectors was 131, which represented 25.8% of the total first-tier benefited companies.
The potential operation portfolio in this sector in the closing of 30,978 million pesos with 108 projects under study.
9. Northeast Region Management Board and Other Sectors
During 2019, the Northeast Region Management Board remained with the commitment to attract new clients, authorize new credit lines, generate new agreements with current clients and promote the expansion of financial products.
The results of the year were:
The portfolio balance reached was 18,658 million pesos in the first-tier private sector.
The placement of financial resources plus commission was 394 million pesos.
The number of benefited companies during 2019 was 33.
10. Center Region Management Board and Other Sectors
During 2019, the Center Region management Board promoted institutional credit programs, supporting new and current clients, increasing the funding of other economy sectors such as trade and manufacturing industry, keeping the risk level grade in green numbers.
The results were:
- The first-tier private portfolio balance was 32,014 million pesos.
- The financial resources placement was 16,208 million pesos.
- The financial framework contribution was 774 million pesos.
- The benefited companies were 53.
11.Western Region Management Board and Other Sectors
During 2019, the Western Region Management Board remained enhancing the Mexican companies in other sectors such as agricultural, alimentary and entertainment, manufacturing industries.
The results in the year were:
- The balance portfolio of 10,784 million pesos in the private first-tier sector.
- The financial resources placement was 8,216 million pesos.
- The financial framework contribution was 296 million pesos.
- The benefited companies were 20.
The operations that stood out are:
The unionized credit given by a Mexican company dedicated to the exhibition of movies for 700 million dollars, which Bancomext shares 75 million dollars. Currently, the company generates annual services for 900 million dollars and creates 26,000 direct jobs.
The participation of Bancomext in the unionized credit for a Mexican company dedicated to the manufacturing of paper and carton for 355 million dollars, out of which Bancomext gave 50 million dollars. The company increased its exportations by 200 million dollars annually and directly employs 11,000 people.
The Mexican multinational alimentary protein industry, thanks to the support from Bancomext trough the unionized credit for 470 million dollars (out of which the institution participated with 50 million dollars to fund its investments in Capex), increased its exportations to achieve more than 900 million dollars; creating more than 11,000 direct jobs.
With the support of Bancomext, one of the leader companies in paper and packing, funded its investments in Capex, as well as its new plant in Nuevo Leon, through a unionized credit for 470 million dollars, of which Bancomext participated with 50 million dollars, the company generates more than 420 million dollars annually and creates more than 7,500 jobs.
12. Letters of credit
During 2019, Bancomext remained giving service of letters of credit to clients with credit line and fostering the funds provision, from counseling to the required follow-up to ensure their emission.
The attention to the behavior of the new projects and their placement operation support of letters of credit, the product operating area is applying two initiatives: the first one is to look for new opportunities with current clients. The second one: trough the capturing of the product to the business promoting executives in Bancomext.
The results in 2019 were:
- The reported balance was 1,092 million pesos for letters of credit with risk and 530 million pesos for letters of credit with fund provision, adding a total of 1,623 million pesos.
- In the placement area, operations for a total of 6,020 million pesos were emitted, integrated by 5,769 million pesos for letters of credit with risk and 251 million pesos for letters of credit with fund provision.
The income for charged commissions were a total of 46 million pesos, integrated by 37 million pesos for letters of credit with risk and 9 million pesos for letters of credit with fund provision.
13. Public Sector
In order to properly give service to the needs of the Mexican enterprise market, Bancomext undertook, since 2009, the reconversion of its approach while giving financial aid, paying especial attention to the private sector and decreasing the aids given to the public sector. However, in 2016 the most important energy company in Mexico asked for support to the Development Bank to complement it horizontal integration in new markets, like the use of gas, urea and fertilizers, discharging credit in the first semester of 2017.
Hence the portfolio balance of the public sector was 5,597 million pesos, keeping focus and funding the private sector. The behavior of the public sector is shown in the following graphic:
