from the CEO
from the CEO

In spite of the unstable national and international context of 2018, once again our company has closed a year of financial soundness and success on the road to financial sustainability. This year, the situation was compounded by the renegotiation of the United States-Mexico-Canada Agreement (USMCA) and the economic policy of the recently elected federal government in Mexico which created even more market uncertainty.

As a result of our sound business model, consolidation of the business units, development of adequate problem-solving capacities, and the consolidation of our loan portfolio, company interest income was MXN $10,287.60 million, a growth of 20.22% with respect to 2017. Net profit was MXN $1,955.36 million, a 17.71% increase with respect to the previous year.

Our consolidated loan portfolio was MXN $36,319.12 million for an annual increase of 25.17%, 500 pbs above the estimate set in the 2018 Guide, which featured the performance of our Payroll and PyMES segments.

Reflecting the high quality of our assets, our default portfolio index was 1.70%, one of the lowest in the sector and well below the 2.10% index at the end of 2017.

In 2018 we once more proved to be a mature and institutional company. We managed to successfully close the Swiss Bond offer maturing in 2022 for CHF $170.00 million, rated BB+ by both Fitch Ratings and Standard and Poor’s. This event made us the first non-banking financial company in Mexico to place debt in the Swiss market.

We placed a second issuance of the portfolio securitization program for MXN $615.00 million in the Bolsa Institucional de Valores (BIVA) –an institution that started operations in July in Mexico– becoming the first Mexican company to issue debt in said institution.

A great part of these results was a consequence of the transformation program we are currently undergoing and of the strengthening of our Cultura Azul (Blue Culture), which allows us to continue on the path to becoming a better company, achieving our goals, and fulfilling our 2022 Vision. Achieving our goals is important; yet, the manner in which these are reached is even more relevant. Thus, we continue to work on designing and implementing the tools that will allow us to reach our objectives and be more efficient and successful.

In 2018 we placed the second issuance of the portfolio securitization program for MXN $615.00 million in the BIVA.

In 2018, we focused our efforts on the execution of three tracks: the first one was focused on business management for improving alignment and communication for decision-making; the second one, was aimed at boosting our Cultura Azul, leadership, and mentality –a management model based on accountability designed by our management team to fulfill our 2022 Vision; and the third track focused on digital transformation with the goal of defining the digital strategy that will take Crédito Real to next level.

In addition to presenting the economic, environmental, social and corporate governance performance results of Crédito Real, this report also constitutes our Communication on Progress, reporting on our compliance and fulfillment of the 10 principles of the UN Global Compact.

In 2018 we were ranked 11th by Great Place To Work in the category of organizations between 50 and 500 collaborators and multinationals in the Banking, Securities and Finance sector. We continue to surpass the goals of our corporate culture.

Our Finance and Investor Relations departments were once more recognized as one of the most outstanding in Latin America by the Institutional Investor for our service commitment to investors.

Diversification makes Crédito Real a sustainable company; thus, the correlation of financial, social and environmental factors is a crucial factor. Furthermore, we ensure integral progress by fulfilling our responsibility of permanently monitoring the three tracks and defining the moment at which it is necessary to focus on one of them in order to achieve common, attainable goals.

In 2018 we were recognized by the Great Place To Work Institute as one of the best places to work in Mexico. This was the result of the high level of reliability and quality of the corporate culture practices we have implemented and the trustworthiness, commitment, respect, fellowship and company pride of our extraordinary work team. We achieved a ranking above the average of the 100 best organizations between 50 and 500 collaborators and multinationals in the Banking, Securities and Finance sector.

In 2019, we shall continue to work on our cultural transformation, on adopting the best practices for continuous improvement, and on generating the tools necessary for improving our business and information systems, consolidating Crédito Real as an ever more transparent company.

I am grateful to our investors, strategic partners and suppliers for their confidence in Crédito Real; to our Board of Directors and to our Management Team for efficiently leading us on the path to the fulfillment of our 2022 Vision; and last but not least, to our collaborators for their commitment in the achievement of our common goals. We shall continue to surpass our goals and consolidate our company.

Ángel Romanos Berrondo
President and CEO