42
BUSINESS AREAS 3Q09
Mexico
reaching a 35.2% share of new loans on the market at
the end of August 2009, 229 basis points up on the figure
for August 2008. To 30th September 2009, Bancomer has
granted 26,909 loans for individual homes and 55,509
for housing developers. The bank also tries to raise the
quality of life for Mexican families. It launched a special
product for an emerging economy, a personal credit for
people with problems proving their revenues. Apart from
offering specific financial conditions for this segment, it
also incorporates the family home into a trust for the first
years of the loan, to facilitate its final recovery.
In the portfolio of doubtful loans, the ratio of
non-performing assets to the total was 4.0% on 30th
September 2009, just 11 basis points higher than the
NPA ratio for the second quarter this year. Meanwhile,
coverage stood at 135% on the same date.
Customer funds (bank deposits, mutual funds and
investment companies and other customer products)
ended September 2009 at €40,819m, which was 4.3%
up on 30-Sep-08. This positive performance reflects
Bancomer’s well-focussed strategy and customer service.
The bank’s market share in customer funds gathered
grew 140 basis points in September 2009 compared to
the same month of the previous year. Current accounts
and term deposits showed brisk growth, reaching a
balance of €13,593m and €7,316m, respectively. This
was the result of 11.0% growth year on year in current
accounts, and 6.8% in term deposits. The composition
of the customer funds at the end of September 2009 was
very similar to that of the same month in 2008. Current
accounts accounted for the largest share, 33%; followed
by mutual funds and investment companies, with 25%;
and term deposits with 18%. The remaining 24%
comprises other customer products and funds
denominated in foreign currency.
During the third quarter, Bancomer securitised a
portfolio of mortgage loans to individuals for €299m
and placed two one-year warrant issues against the
Standard & Poors 500 index. These were the first
optional securities issued by a bank in Mexico with a
tenor of over three months.
Finally, Bancomer was market leader in capital issues,
arranging 20.6% of the issues made on the local
market. Thomson Financial ranked Bancomer as the
market leader in structured finance, with a market share
of 14.3% at the end of the third quarter.
Pensions and Insurance
During January-September 2009, the Group’s insurance
and pension businesses in Mexico have generated an
attributable profit of €192m, 64.0% up on the profit
attained in the same period of 2008.
Afore Bancomer consolidated its leadership in the
pension-fund business this quarter, gathering the greatest
amount of voluntary contributions and corporate
contributions within the retirement savings scheme in
Mexico. It ended September with an attributable profit of
€33m (up 44.5%). As in previous quarters, this positive
result was based on good sales performance, the
favourable evolution of interest revenues and cost control,
with expenses shrinking 16.3% year on year. This was
achieved against a backdrop of falling unemployment
throughout the country. The company’s €47m operating
income reflects a rise of 43.5% to year-on-year.
The insurance business obtained an attributable profit
of €158m to September, with a year-on-year increase of
68.8%. Dynamic sales have been the defining feature of
the period, especially of savings products and products
not linked directly to banking activity. These have offset
the more moderate growth in the other business lines.
The area wrote €566m in business over the
nine-months (including sales of savings products),
reflecting a year-on-year growth of 14.6%.
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