Achievements and Challenges of the Adjunct General Directorate of Corporate Banking

Achievements and Challenges of the
Adjunct General Directorate
of Corporate Banking

In 2020, Mexico, similarly to other countries, suffered the economic effects of the pandemic associated with the COVID-19 disease and the producing virus (SARS-CoV-2), motivating the establishment of measures to counteract the economic effect stemming from the health emergency.

The measures taken by the financial sector have played an important role in overcoming the deterioration in the companies’ financial health. That is why Bancomext, in response to the strategies adopted by the Federal Government, established actions in support of companies to face the economic emergency and the effect of lags in income flows and/or the drop in sales.

Among these backings, figure the restructuring and rescheduling of credits, in both national and foreign currency, grace periods for capital payments, as well as the granting of complementary working capital backing to debts rescheduling.

As a result of this effort, during 2020, Bancomext's empowered entities authorized Corporate Banking to carry out 139 rescheduling actions, for a total of 288 million dollars (rescheduled capital). The credit lines associated with said rescheduling amount to 3,309 million dollars in the following sectors:

To maintain the financial health of the Corporate Banking portfolio, in the first stage the actions focused on debt rescheduling and later, in the third quarter, on attending requests for complementary working capital.

As of December 31, 2020, a total of 30 requests, amounting to 161.24 million dollars, were authorized for complementary working capital rescheduling.

In addition to the foregoing, the Adjunct General Directorate of Corporate Banking continued to pay attention to its Business Model aimed at sectors linked to the increase in the volume of the country’s non-oil exports and the generation of foreign currency, such as tourism, industrial infrastructure development, automotive and auto parts, transportation, logistics, aerospace, electric-electronic, energy, chemical-pharmaceutical, metallurgical mining and telecommunications, and other sectors of the economy through their Regional Directorates.

Bancomext's financing to strategic sectors is reflected in the institution’s main indicators, such as private sector first-tier loan portfolio balance, the number of benefited companies, granting of resources, income from financial margins and commissions, and the potential clients portfolio (Pipe Line). The detail thereof is indicated below:

3.8% increase in the private sector first-tier portfolio balance, from 197,540 million pesos in December 2019 to 205,063 million pesos as of December 2020. The sectors that stand out for their contribution to the private sector first-tier portfolio balance are Tourism with 18.4%, Energy with 16.9%, and Industrial Infrastructure development with 12.7%.

Regarding first-tier placement or spread of resources, during 2020, financial support was channeled for an amount of 135,772 million pesos, presenting an increase of 5.7% when compared to the previous year, which was 128,437 million pesos. The strategic sectors that stood out in this period, for their contribution to the spread of resources, were Transport and Logistics with 29.9%, Energy with 18.7% and Automotive-Auto parts with 10.7%.

Income from financial margins and commissions for first-tier loans that contributed to the sustainability of the institution amounted to 5,174 million pesos, reflecting a 4.0% increase when compared to 4,974 million pesos in December 2019 (considering a return on equity of 190 million pesos in 2020 and 331 million pesos in 2019, the total revenue is 5,364 million pesos and 5,305 million pesos, respectively). The following portfolios contributed to the consolidation of revenues: Energy with 17.5%, Tourism with 16.8%, and Industrial Infrastructure development with 11.7%.

1,150 companies benefited in the year, including 490 companies with direct support and 660 companies supported indirectly. The following sectors stand out for their contribution to the number of directly benefited companies: Tourism with 22.7%, Industrial Infrastructure development with 14.5%, and Energy with 12.9%.