Business profitability is essential in the creation of value for our stakeholders. Crédito Real measures the success of its business and economic performance through diverse financial and operational indicators.
In 2018, our interest income and net profit increased by 20.22 and 17.71% respectively in relation to 2017. These are important figures as they exceed the objectives set at the beginning of the year.
The following table shows the results of Crédito Real at the close of 2018.
| Concept1 | 2016 (MXN) | 2017 (MXN) | 2018 (MXN) | % ∆ 2018 vs 2017 |
|---|---|---|---|---|
| Revenue | $6,958.20 | $8,557.34 | $10,287.60 | 20.22 |
| Commission and fee charged | $539.60 | $826.39 | $564.10 | (31.74) |
| Other revenue | $643.04 | $503.11 | $404.32 | 21.39 |
| Share of profit for associates (2) | $30.93 | $23.90 | $97.16 | (12.94) |
| Economic Value Generated (3) | $8,171.77 | $9,910.74 | $11,353.18 | 14.55 |
| Interest expenses | $1,916.40 | $2,726.10 | $3,207.40 | 17.70 |
| Commissions and fees paid | $283.40 | $234.61 | $256.00 | 9.12 |
| Administration and promotion expenses | $2,912.90 | $1,828.13 | $1,909.36 | 1.92 |
| Taxes | $504.40 | $528.30 | $650.60 | 23.15 |
| Dividends paid | - | $96.80 | $193.44 | 99.83 |
| Investment on social responsibility programs | $2.40 | $1.30 | $1.10 | (15.38) |
| Donations to civil society organizations | $4.60 | $4.10 | $3.64 | (12.20) |
| Sponsorships | $2.10 | $1.97 | $2.00 | 5.26 |
| Payment of collaborator salaries and benefits | - | $1,582.00 | $1,567.00 | (0.95) |
| Net income | $1,714.00 | $1,661.14 | $1,955.36 | 17.71 |
| Economic Value Distributed (4) | $5,626.20 | $7,003.31 | $7,790.54 | 11.24 |
| Retained Economic Value (5) | $2,545.57 | $2,907.43 | $3,562.64 | 22.54 |
| Concept1 | 2016 | 2017 | 2018 | % ∆ 2018 vs 2017 |
| Loan portfolio | $23,927.02 | $29,015.04 | $36,319.12 | 25.17 |
| Capitalization | 38.80% | 50.90% | 43.50% | (7.00) |
| Net earnings per share | $4.37 | $4.24 | $4.99 | 17.69 |
| ROAA | 5.00% | 4.50% | 4.20% | (0.30) |
| ROAE | 20.20% | 15.90% | 12.90% | (3.00) |
| Net interest margin | 22.50% | 22.20% | 20.80% | (1.20) |
| Default index | 2.20% | 2.10% | 1.70% | (0.40) |
1 Figures in millions of pesos, with exception of Capitalization, ROAA, ROAE, Net earnings per share and Default index.
2 The 2017 Annual and Sustainability Report (p. 36), reported the item ‘collaborator profit sharing’; the correct item should be ‘share of profit for associates’, reason why the figures for 2016 and 2017 in this report show a variation with respect the information reported in the previous year. The amount of this item is obtained by subtracting the non-controlling interest from the share of profit for associates.
These results may be consulted in Crédito Real’s 2018 Annual Report (page 32).
3 Economic Value Generated is the sum of: Revenue, commissions and fees paid, other income and share of profit for associates.
4 Economic value distributed is the sum of: Interest expenses, commissions and fees paid, administration and promotion expenses, taxes, paid dividends, investment on social responsibility programs, donations to civil society organizations, sponsorships, and payment of collaborator salaries and benefits.
5 Economic value retained is the difference between economic value generated and economic value distributed.
Swiss Bonds are unsecured and cannot be redeemed before maturity in the amount of CHF $170.00 million and pay an annual rate of 2.875%.
The Swiss bonds were rated as “BB+” globally by Fitch Ratings and Standard and Poor’s due to factors such as the following:
In addition, we use the net resources obtained from its placement to cover fees and expenses of the offer, pay diverse financial obligations, and general corporate use.
Credit Suisse AG acted as the placement agent of the Swiss Bond which is listed exclusively on the SIX Swiss (Stock Market in Switzerland).
At the start of 2018 we successfully concluded the issuance of bonds maturing in 2022 (Swiss Bond), showing the soundness and institutionality of our company.
