BBVA México
S.A.
Financial Report and
Achievements
January-September 2021
2
Total Income*
+7.5%
vs.9M20 (mp)
*Financial Margin + net commissions + trading income + other income
Efficiency ratio
37.8%
Past Due Loan Ratio (%) Capitalization Index (%)
Adequate asset
quality
High capital levels
Positive behavior in
recurrent income
Operational excellence
2.0
3.0
1.9
Sep.20 Dic.20 Sep.21
16.8
17.5
18.1
Sep.20 Dic.20 Sep.21
TRANSFORMATION
SUSTAINABILITY
Without visible
numbers
Recycled
Plastic
Contactless
Continuous investment in
innovation
Committed with the environment
Help our clients’ transition to a
sustainable future
We grant green loans to
companies and support them
in their debt issuances
Our clients obtain benefits on
their loans for sustainable
goods
New Aqua Card
Index
Relevant Information ............................................................................................................................4
Digital Development .............................................................................................................................5
Responsible Banking ............................................................................................................................7
Analysis and Discussion of Results ..................................................................................................... 10
Main Magnitudes .................................................................................................................................11
Commercial Activity..................................................................................................................... 12
Performing Loans ........................................................................................................................ 12
Asset quality ................................................................................................................................ 14
Non-Performing Loans ................................................................................................................ 14
Non-Performing Loans Movements ............................................................................................. 15
Loan Portfolio Credit Quality Classification.................................................................................. 15
Deposits ...................................................................................................................................... 16
Results ........................................................................................................................................ 17
Net Interest Income ..................................................................................................................... 18
Fees and Commissions................................................................................................................ 18
Trading income............................................................................................................................ 19
Non-Interest Expenses ............................................................................................................... 20
Capital and Liquidity ........................................................................................................................... 21
BBVA Mexico estimated capitalization index ............................................................................... 21
Financial Indicators ............................................................................................................................22
Ratings ...............................................................................................................................................24
Issuances ...........................................................................................................................................25
Financial Statements ......................................................................................................................... 26
Balance Sheet ............................................................................................................................ 26
Assets ........................................................................................................................................ 26
Liabilities & Stockholders’ Equity................................................................................................ 27
Memorandum accounts ............................................................................................................. 28
P&L (Last 5 quarters) ................................................................................................................. 29
Cash Flow Statement ................................................................................................................. 30
Changes in Stakeholder’s Equity ................................................................................................. 31
Regulatory accounting pronouncements recently issued ............................................................32
4
Relevant Information
Decree and distribution of dividends
During the third quarter of 2021, no decree or dividend payments was made, regarding the dividends
that were approved for distribution at the General Ordinary Shareholders' Meeting of BBVA México, SA,
Institución de Banca Múltiple, Grupo Financiero BBVA México (BBVA Mexico or the Institution) dated
February 26, 2021, corresponding to the profits for the year 2020.
The foregoing in accordance to the recommendation of the National Banking and Securities
Commission (CNBV), applicable to fiscal years 2019 and 2020 for credit institutions dated April 16,
2021, by means of official letter No. P083 / 2021, on the payment of dividends, shares repurchase and
any other mechanism or act that implies a capital transfer to the, which left without effect the one dated
March 30, 2020.
Expiration of the Bank Stock Certificate
During September 2021, the Stock Certificate BACOMER 18V expired and was liquidated; the issuance
date was September 2018 for an amount of 3,500 million pesos (mp).
Change in Company Name
As part of the unified identity of Grupo BBVA globally, as well as the rebranding at the local level, the
financial entities that form Grupo BBVA Mexico changed their corporate names. In the case of the bank,
the Group's main subsidiary, the new name is established as BBVA México, SA, Institución de Banca
Múltiple, Grupo Financiero BBVA México, which will replace the previous name, BBVA Bancomer, SA,
Institución de Banca Múltiple, BBVA Bancomer Financial Group.
5
Digital Development
DIGITAL STRATEGY
As a result of our continuous investment in innovation and development of new products and services
to offer our customers through our Apps, we continue to see a growth in the number of customers
using digital channels. As of today, we reached a total of 14.1 million of Mobile Clients at the end of
September 2021, which represents 60% of total customer base, being 30% higher than the previous
year.
Constant boost in the use of digital channels is reflected in the percentage of digital sales (measured in
units), which during the first nine months of the year reached 69% of total sales done in BBVA Mexico.
Mobile Clients (millones)
Digital Sales (% total sales, units)
Financial transactions carried out by our clients in the first nine months of the year totaled 1,676 million,
which represented an increase of 32% compared to last year. In this sense, the continuous
implementation of our digital strategy, reflected in the number of transactions carried out within our
mobile and web channels, representing 53% of the total (compared to 43% in 9M20) and growing by
64% in the last twelve months. This allows our customers to access our services and products more
easily, reducing waiting time and in a safe environment, complying with the most robust and
sophisticated standards in the industry.
DIGITAL DEVELOPMENT & INNOVATION
BBVA INVEST
BBVA Mexico recently made available the BBVA Invest service to its clients, an innovative experience
of digital personalized advice. Based on an objective and using programmed investment, this service
offers investment fund portfolios for each of our clients. BBVA Invest is a tool for clients who are not
familiar with the investment world, having access to have high quality and personalized digital advice.
INSURANCE “TU MÉDICO PARTICULAR” (your own doctor)
In order to promote the culture of health insurance and help to protect financial health of Mexicans,
BBVA Seguros Salud México, S.A. de CV, Grupo Financiero BBVA México and Bupa Seguros México
6
launched a insurance product called 'Tu Médico particular', a product that offers consultations, video
consultations, medicines and a doctor at home, as well as diagnostic analysis and medical
emergencies, in case of needed. The insurance, which can be hired digitally and / or in BBVA Mexico
branches, is aimed on being a complement to a public or private insurance, in addition to having
financial support for people who do not have Access to a health service.
7
Responsible Banking
REPUTATION MANAGEMENT AT BBVA MEXICO
This topic is becoming more and more relevant since it is one of the most valuable and important
resources to maintain and create value for institutions, it also serves to mitigate risks and identify
opportunities that ensure the sustainability of organizations.
At BBVA Mexico, we have set out to be the company with the best reputation, generating value for
society and responding to the needs of clients and employees.
Today we are close to our goal, since we are currently number four in the Merco ranking of the 100 best
companies (the first place in the financial sector) and our CEO is number five in the Leaders ranking , for
the first time we have a ranking within Top 5 in both of these rankings.
The challenge continues and for this, BBVA Mexico implemented a robust governance model that
mitigates potential reputational risks. The main processes within our governance model are:
prevention, reputation management, response to events and damage control, communication and
monitoring.
There are seven dimensions by which we currently measure reputation:
• Offer of products and services
• Ethics and Integrity
• Society and Environment
• Leadership
• Finance
• Innovation
• Job
This helps us identify the needs that have the greatest impact for the perception of our stakeholders
and act accordingly. We will continue working to improve internal and external processes to become
the company with the best reputation in the country.
8
SUSTAINABLE STRATEGY
BBVA Mexico is aware of the important role banking institutions’ play in the transition to a sustainable
world through its financial activity, as demanded by society. In addition, this is one of our strategic
priorities "to help our clients transition towards a sustainable future", inspired by the Sustainable
Development Goals (SDG) adopted by the United Nations (UN), with a focus on climate change, and
inclusive and sustainable social development.
BBVA Mexico has a local sustainable office that coordinates twelve work groups specifically designed
to develop sustainable solutions for clients and promote responsible communication and marketing
practices directed at them. In addition, we have strategies that favor the creation of sustainable
markets.
BBVA Mexico has a sustainable local office that coordinates twelve work groups specifically designed
to develop sustainable solutions for clients and promote responsible communication and marketing
practices directed at them. In addition, we have strategies that favor the creation of sustainable
markets.
BBVA Mexico aims to enhance a positive impact through financial instruments, aligning itself with
initiatives such as:
• Financial Initiative of the United Nations Environment Program (UNEP FI)
• Equator Principles
• Principles of Responsible Investment (PRI)
• Principles of Responsible Banking (PRB)
• UN Global Pact
• Carbon Disclosure Project (CDP)
• Green Finance Advisory Council (CCFV, by its acronym in Spanish)
Finally, in 2020 Grupo BBVA and BBVA Mexico took an additional step forward with two very relevant
announcements: First, the commitment to reduce its exposure to carbon-related activities to zero by
2030 in developed countries and by 2040 in the rest of the world. Second, it has made a commitment
to be greenhouse gas neutral (zero carbon portfolio) by 2050, also taking into account the emissions
of clients financed. This is a very important milestone, which means aligning with the most ambitious
scenario of the Paris Agreement.
SUSTAINABLE FINANCING
Credit Products
The range of credit products handled by BBVA Mexico have significant benefits for clients such as
preferential rates. The main goal is to make these products more attractive in the market.
Individuals: financing for the
acquisition of hybrid and
electric cars, financing for
solar panels and green
mortgages, among others.
Companies: green financing
for companies, letters of
credit, leases and green
bonds, among others.
*Preliminary figures
Insurance: we are initiating
the green insurance offering
(hybrid and electric cars).
January – September 2021
38,887 mp*
January - September 2021
2,467 mp
Green and social bonds issuance in the Mexican market
Beyond just promoting sustainable financing, at BBVA Mexico we promote a new Sustainable Banking
model. For this reason, we have actively participated in numerous initiatives and are always in close
collaboration with all interest groups such as the industry itself, regulators, supervisors, investors and
civil society organizations to continue advancing and promoting the world’s transition towards a
sustainable development.
The total of green and social bonds in which we participated as an intermediary placement agent in the
first nine months of the year was for 19,400 million pesos.
10
Analysis and Discussion of Results
Executive Summary
We continue to provide opportunities to our clients and boost the country's
economic activity, reflected in the performance of the consumer and housing loan
portfolio, growing 1.7% and 8.3% in annual terms, respectively (4.1% and 6.5% vs.
Dec-20).
The loan portfolio remained at similar levels to that of the third quarter of 2020
(+3.3% vs. Dec-20), the annual comparison shows the effect of the use of credit lines in
2020 from companies and corporates to face the pandemic, which have been prepaid
during 2021.
As such, we maintain our leadership in the loan portfolio, with a market share of
23.7% in August 2021, according to figures published by the CNBV.
The continuous promotion of savings among our clients is shown in the evolution of our
bank deposits (demand deposits + total term), with an annual growth of 4.2% (4.1%
vs. Dec-20). This has led us to increase our bank deposit market share in the last
twelve months by 47 basis points (bp) to 23.1% in August 2021 (figures from the
CNBV).
Net income for the first months of the year totaled 42,459 million pesos, driven
by a recovery in the financial margin, higher commissions resulting from the opening of
non-essential activities during the year, and the continuous search for internal
efficiencies focused on maintaining our operational excellence.
Our solid risk models are reflected in a continuous improvement of the asset quality
indicators with an NPL ratio that improved to 1.9%.
We continue to have solvency and liquidity ratios above the minimum required,
with a total capital ratio (ICAP) of 18.1% and a liquidity coverage ratio of 216.69%
(minimum required of 12% and 100%, respectively).
11
Main Magnitudes
Information as September 2021
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
% %
Main Magnitudes 3Q 4Q 1Q 2Q 3Q 9M 9M
M illion pesos
2020 2020 2021 2021 2021 2020 2021
Balance Sheet
Assets 2,452,564 2,442,870 2,413,308 2,494,873 2,510,737 0.6 2,452,564 2,510,737 2.4
Performing Loans 1,250,968 1,209,449 1,226,893 1,233,847 1,249,918 1.3 1,250,968 1,249,918 (0.1)
Liabilities 2,218,878 2,200,636 2,166,430 2,246,110 2,243,802 (0.1) 2,218,878 2,243,802 1.1
Bank Deposits* 1,326,707 1,328,063 1,359,680 1,361,633 1,382,046 1.5 1,326,707 1,382,046 4.2
Equity 233,686 242,234 246,878 248,763 266,935 7.3 233,686 266,935 14.2
Results
Net Interest Income 31,965 32,835 32,498 32,586 34,375 5.5 92,693 99,459 7.3
Total Operating Income 41,376 43,168 40,853 43,535 43,949 1.0 119,359 128,337 7.5
Expenses (15,969) (16,638) (17,135) (17,646) (13,733) (22.2) (48,399) (48,514) 0.2
Income Before Tax 18,438 10,290 13,291 19,444 25,605 31.7 40,149 58,340 45.3
Net Income 12,663 7,587 9,702 13,349 19,408 45.4 28,580 42,459 48.6
Indicators in %
3Q 4Q 1Q 2Q 3Q 9M 9M
2020 2020 2021 2021 2021 QoQ (bp) 2020 2021 YoY (bp)
Profitability and Asset Quality
ROE 22.3 12.8 15.9 21.5 30.1 856 17.0 22.2 525
Efficiency 38.6 38.5 41.9 40.5 31.2 (928) 40.5 37.8 (275)
NPL ratio 2.0 3.0 2.6 2.4 1.9 (46) 2.0 1.9 (11)
Coverage ratio 159.8 128.7 137.4 141.5 149.8 834 159.8 149.8 (1,004)
Solvency and Liquidity
Total Capital Ratio 16.8 17.5 17.7 17.5 18.1 61 16.8 18.1 129
Core Equity Tier 1 Ratio
13.5 14.4 14.6 14.5 15.5 100 13.5 15.5 205
CCL** 185.24 190.49 203.12 206.89 216.69 980 185.24 216.69 3,145
Leverage Ratio
9.8 10.3 10.3 9.6 10.2 54 9.8 10.2 36
Figures in units (#)
3Q 4Q 1Q 2Q 3Q 9M 9M
2020 2020 2021 2021 2021 QoQ (#) 2020 2021 YoY (#)
Infraestructure
Employees 33,347 33,313 33,759 33,525 37,889 4,364 33,347 37,889 4,542
Branches 1,814 1,746 1,728 1,725 1,721 (4) 1,814 1,721 (93)
ATMs 12,923 12,950 12,957 13,014 13,139 125 12,923 13,139 216
* Demand + time deposits
** LCR level quarterly average. Preliminary figure
Q-o-Q
Y-o-Y
12
Commercial Activity
Performing Loans
The loan portfolio remained at similar levels than that of the third quarter of 2020, while in the
first nine months of 2021 grew by 3.3%. The annual comparison shows the effect of credit line
used by companies and corporations to face the pandemic in 2020, and that were later
prepaid; while compared to 2020, the result benefits from a favorable recovery in the demand
of consumer and mortgage loans.
As a result of the continuous recovery in the country's economic activity, driven largely by a
pickup in private consumption, we have observed an acceleration in loan demand mainly to
individuals, which grew 4.7% in annual terms (+5.2% vs. Dec-20). By segment, the mortgage
portfolio continues to show a favorable performance growing 8.3% annually (6.5% vs. Dec-
20); while consumer and credit card loans have accelerated their growth trend in recent
months increasing 1.7% in annual terms (4.1% vs. Dec-20), highlighting a positive
performance in payroll loans and credit cards.
The commercial portfolio decreased 3.7% in annual terms (+1.9% vs. Dec-20). By segment,
business loans have been impacted by the effect of prepayments; as well as the appreciation
of the peso against the dollar. The result in the first nine months of the year is explained by a
positive behavior in government loans (+1.5%), explained by our strategy based on complete
solutions, as well as by higher demand for loans to companies, growing 3.3% in the period.
We maintain our leadership as a result of a continuous loan offer to our clients, registering a
market share of 23.7% as of August 2021, an increase of 51 bp compared to 2020 and
according to figures published by the CNBV.
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Performing Loans 9M 6M 9M %
Million pesos 2020 2021 2021 Q-o-Q Y-o-Y
Businesses 534,926 499,068 505,222 1.2 (5.6)
Financial entities 26,762 24,156 22,065 (8.7) (17.6)
Government 155,953 166,593 164,105 (1.5) 5.2
Government loans 100,179 112,504 114,629 1.9 14.4
State-owned entities 55,774 54,089 49,476 (8.5) (11.3)
Commercial loans 717,641 689,817 691,392 0.2 (3.7)
Consumer 288,427 285,434 293,398 2.8 1.7
Mortgage 244,900 258,596 265,128 2.5 8.3
Total Performing Loans 1,250,968 1,233,847 1,249,918 1.3 (0.1)
13
Performing Loans mix (%)
Commercial Loans mix (%)
Retail Lending mix (%)
55%
45%
Commercial
Retail
73%
3%
24%
Businesses
Financial
entities
Government
53%
47%
Consumer
Mortgage
14
Asset quality
Non-Performing Loans
The past-due loan portfolio shows an annual decline of 5.5%, explained by our strict internal
risk models, helping us achieve during this quarter a past due loan portfolio in better levels
than those we had previous to the 2020 crisis. Reflected in a reduction of 11 bp in Non-
Performing Loan (NPL) ratio, closing September 2021 in 1.9%.
Compared to the end of December 2020, there is also a positive performance of the past-due
portfolio with a decline of 34.6%, explained by our strict risk model and constant monitoring
of the payment evolution of the customers who required additional support.
The coverage of the past due loan portfolio in 3Q21 was 149.81%.
NPL and Coverage ratio (%)
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Non Performing Loans 9M 6M 9M
Million pesos 2020 2021 2021 Q-o-Q Y-o-Y
Businesses 9,932 12,375 8,098 (34.6) (18.5)
Financial entities 0 0 0 0 0
Government entities 0 11 0 0 0
Commercial loans 9,932 12,386 8,098 (34.6) (18.5)
Consumer 7,778 8,837 8,184 (7.4) 5.2
Mortgage 8,230 8,877 8,237 (7.2) 0.1
Total Non Performing Loans 25,940 30,100 24,519 (18.5) (5.5)
%
159.8
149.8
2.0
1.9
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Sep.20 Sep.21
Coverage
ratio
NPL ratio
15
Non-Performing Loans Movements
Loan Portfolio Credit Quality Classification
Around 80% of the portfolio was classified with the minimum risk level, which implies a sound
asset quality.
Credit Card for Businesses and letters of credit are included in commercial.
In mortgage, the securitization consolidated by BACOMCB 09 is considered.
NON-PERFORMING LOANS MOVEMENTS SEPTEMBER 2021
BBVA México, S.A., Institución de Banca Múltiple, Grupo
Financiero BBVA México
Businesses
and financial
entities
Mortgages Consumer Total
Non-Performing Loans movements
Million pesos
Final Balance (December 2020) 11,983 9,354 16,147 37,484
Inputs: 5,741 6,658 22,653 35,052
Transfer to current loans and reestructured 4,928 5,827 21,895 32,650
Reestructurados 813 831 758 2,402
Outputs: (9,626) (7,775) (30,616) (48,017)
Transfer to current loans (678) (5,198) (3,055) (8,931)
Cash settlements (1,661) (342) (2,233) (4,236)
Restructured (Cash settlements) (187) (348) (127) (662)
Settlement and/or adjudication (131) (61) 0 (192)
Write-offs (695) (156) (1,774) (2,625)
Financial penalties (6,274) (1,670) (23,427) (31,371)
Final Balance (September 2021) 8,098 8,237 8,184 24,519
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Performing Loan Rating Commercial Mortgage Consumer Credit Card TOTAL
September 2021 Balance Provision Balance Provision Balance Provision Balance Provision Balance Provision
Million pesos
Risk Level
A1
646,255 1,651 226,125 247 56,458 519 53,565
944
982,403
3361
A2
67,720 777 1,445 9 14,107 357 15,360 602 98,632 1,745
B1
12,817 210 6,827 61 59,451 1,978 8,891 511 87,986 2,760
B2
8,940 202 15,439 181 30,206 1,378 7,904 573 62,489 2,334
B3
15,232 489 2,579 41 7,674 428 7,905 704 33,390 1,662
C1
10,632 727 8,394 262 5,134 374 8,437 1,006 32,597 2,369
C2
2,649 180 4,158 304 4,125 412 9,516 2,259 20,448 3,155
D
2,804 814 4,480 1,254 2,294 528 1,542 767 11,120 3,363
E
8,040 5,061 3,916 1,968 7,302 4,955 1,700 1,469 20,958 13,453
Adicional
2,529
Total required 775,089 10,111 273,363 4,327 186,751 10,929 114,820 8,835 1,350,023 36,731
16
Deposits
The continuous promotion of savings among our clients benefitted the evolution of the bank’s
deposits (demand deposits + total term) with an annual growth of 4.2% (4.1% vs. Dec-20).
This, has led us to increase the bank’s market share by 47 bp. during the last 12 months to
23.1% in August 2021 (according to the CNBV figures).
Demand deposits registered a positive behavior with an annual increase of 10.0% (6.3% vs.
Dec-20), due to the preference of our clients to maintain their resources available in a scenario
of uncertainty. On the other hand, time deposits decreased 17.7% in annual terms (-5.9% vs.
Dec-20). This evolution has allowed us to register a favorable mix in bank deposits with an 83%
of the relative weight in low-cost deposits.
*Bank Deposits (mp)
Bank Deposits Mix (%)
*Bank deposits includes demand deposits and time deposits
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Deposits 9M 6M 9M
Million pesos 2020 2021 2021 Q-o-Q Y-o-Y
Demand deposits 1,047,863 1,132,151 1,152,512 1.8 10.0
Time Deposits 278,844 229,482 229,534 0.0 (17.7)
Customer Deposits 258,218 223,838 225,064 0.5 (12.8)
Money Market 20,626 5,644 4,470 (20.8) (78.3)
Bonds 89,006 87,743 88,170 0.5 (0.9)
Deposits global account without movements 4,929 5,278 5,161 (2.2) 4.7
Total Deposits 1,420,642 1,454,654 1,475,377 1.4 3.9
%
83%
17%
Demand
Time
1,327
1,362
1,382
Sep.20 Jun.21 Sep.21
+4.2%
17
Results
As a result of the recovery in private consumption and economic activity in the country, which
was impacted in 2020 by the closure of non-essential activities derived from the pandemic, a
positive performance is observed in the results of the first nine months of 2021. Thus, net
income in this period totaled 42,459 million pesos, a 48.6% increase compared to the same
period of the previous year.
This result can be explained by a recovery in the financial margin, which in 2020 was negatively
impacted by the application of support programs, an increase in commissions derived from
the opening of non-essential activities during the year, and the continuous search of internal
efficiencies focused on maintaining our operational excellence.
NIM (total assets, %)
1
ROE (%)
1
Net Interest Margin (NIM) on total assets.
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Income Statement 3Q 2Q 3Q % 9M 9M %
Million pesos 2020 2021 2021 Q-o-Q Y-o-Y 2020 3021 Y-o-Y
Net interest income 31,965 32,586 34,375 5.5 7.5 92,693 99,459 7.3
Provisions for loan losses
(6,987) (6,471) (4,624) (28.5) (33.8) (30,833) (21,540) (30.1)
Net interest income after provisions for loan losses 24,978 26,115 29,751 13.9 19.1 61,860 77,919 26.0
Total Fees & Commissions
6,906 7,415 7,476 0.8 8.3 19,713 22,116 12.2
Trading income
1,898 2,241 2,133 (4.8) 12.4 6,693 5,222 (22.0)
Other operating income
607 1,293 (35) NA NA 260 1,540 NA
Total operating revenues 34,389 37,064 39,325 6.1 14.4 88,526 106,797 20.6
Non-interest expense
(15,969) (17,646) (13,733) (22.2) (14.0) (48,399) (48,514) 0.2
Net operating income 18,420 19,418 25,592 31.8 38.9 40,127 58,283 45.2
Income before income tax and profit sharing 18,438 19,444 25,605 31.7 38.9 40,149 58,340 45.3
Net Income 12,663 13,349 19,408 45.4 53.3 28,580 42,459 48.6
5.4
5.4
9M20 9M21
17.0
22.2
9M20 9M21
18
Net Interest Income
In the first nine months of 2021 there was a positive evolution of the financial margin with an
annual growth of 7.3%. This is explained by the recovery of the loan activity this year, an
improvement in the portfolio mix of loans and deposits compared to the previous year and a
negative impact that occurred in 2020 related to the application of support programs to our
clients.
Noteworthy to remember, in the 1Q20 additional reserves were created for 6,544 million pesos
to face the crisis caused by the pandemic, of which 2,953 million pesos were released in this
quarter and 1,548 million pesos in 2Q21. Resulting from this, the item of provisions for loan
losses decreased 30.1% in annual terms. The financial margin adjusted for provisions was
77,919 million pesos in the first nine months of the year 26.0% higher than the previous year.
Fees and Commissions
Driven by the opening of non-essential economic activities, which have contributed to an
acceleration in the economic recovery, net fees and commissions increased by 12.2%. This is
mainly explained by higher acquiring billing in credit and debit cards boosted by a higher level
of transactions; as well as an increase in bank fees mainly related to the recovery of credit
activity.
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
%
Net Interest Income 3Q 2Q 3Q 9M 9M
Million pesos 2020 2021 2021 2020 2021
Interest income
43,559 42,066 44,345
5.4 1.8 136,172 128,594 (5.6)
Interest expenses
(12,071) (9,948) (10,440)
4.9 (13.5) (44,960) (30,612) (31.9)
Margin fees
477 468 470
0.4 (1.5) 1,481 1,477 (0.3)
Net interest income
31,965 32,586 34,375 5.5 7.5 92,693 99,459 7.3
Provisions for loan losses
(6,987) (6,471) (4,624)
(28.5) (33.8) (30,833) (21,540) (30.1)
Net interest income after provisions 24,978 26,115 29,751 13.9 19.1 61,860 77,919 26.0
%
Q-o-Q
Y-o-Y
Y-o-Y
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Fees & Commissions 3Q 2Q 3Q 9M 9M %
Million pesos 2020 2021 2021 Q-o-Q Y-o-Y
2020 2021 Y-o-Y
Bank fees 1,758 1,801 1,845 2.4 4.9 5,073 5,293 4.3
Credit and debit card
3,483 4,216 4,232
0.4 21.5 9,966 12,247 22.9
Investment funds
1,161 1,183 1,122
(5.2) (3.4) 3,381 3,443 1.8
Others
504 215 277
28.8 (45.0) 1,293 1,133 (12.4)
Commissions and fee income 6,906 7,415 7,476 0.8 8.3 19,713 22,116 12.2
%
19
Trading income
The volatility observed in the equity and fixed income markets has resulted in lower trading
income from purchases and sales this year. This, together with a negative valuation in foreign
currency due to derivative operations, makes this item show a decline of 22% in the first nine
months of the year compared to the same period of 2020.
Other income (expenses) of the operation
The positive result in other operating income is explained by the extraordinary income derived
from the sale in 2Q21 of affiliated companies, and income generated from the implementation
of initiatives aimed at transforming the production model.
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Trading income 3Q 2Q 3Q 9M 9M %
Million pesos
2020 2021 2021 Q-o-Q Y-o-Y 2020 2021 Y-o-Y
Variable income 15 (1) (2) 100.0 (113.3) (12) (39) 225.0
Fixed income and repos (1,439) (189) 463 (345.0) (132.2) (1,426) (1,325) (7.1)
Securities (1,424) (190) 461 (342.6) (132.4) (1,438) (1,364) (5.1)
FX 6,881 (5,849) (1,042) (82.2) (115.1) (2,138) (10,089) 371.9
Derivatives (7,803) (4,524) (949) (79.0) (87.8) (4,388) 2,399 (154.7)
Results from valuation (2,346) (10,563) (1,530) (85.5) (34.8) (7,964) (9,054) 13.7
Variable income 221 2 (8) (500.0) (103.6) (811) 97 (112.0)
Fixed income and repos 1,963 (386) (800) 107.3 (140.8) 3,151 862 (72.6)
Securities 2,184 (384) (808) 110.4 (137.0) 2,340 959 (59.0)
FX 1,507 1,796 2,056 14.5 36.4 4,564 5,280 15.7
Derivatives 553 11,392 2,415 (78.8) 336.7 7,753 8,037 3.7
Results from trading 4,244 12,804 3,663 (71.4) (13.7) 14,657 14,276 (2.6)
Trading income 1,898 2,241 2,133 (4.8) 12.4 6,693 5,222 (22.0)
%
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México %
Other Income (Expenses) 3Q 2Q 3Q 9M 9M
Million pesos 2020 2021 2021 2020 2021
Result of operation of foreclosed assets 475 297 256
(13.8) (46.1)
830 724
(12.8)
Interest of loans to employees
207 215 214
(0.5) 3.4
614 636 3.6
Bank Correspondents
38 45 46 2.2
21.1
95 142 49.5
Recovery of warranty payments
56 43 79 83.7 41.1 201 136 (32.3)
Sales and recoveries of loan portfolio
123 44 49 11.4 (60.2) 166 93 (44.0)
Reorganization plans
(589) - - NA NA (589) - NA
Write-offs
(42) (96) (163) 69.8 288.1 (326) (275) (15.6)
Legal and labor contingencies
(99) (70) (280)
300.0
182.8 (238) (314) 31.9
Donations
(131) (155) (246)
58.7
87.8 (591) (574) (2.9)
Other Income
569 970 10
(99.0)
(98.2) 98 972 891.8
Other operating income 607 1,293 (35) NA NA 260 1,540 492.3
Q-o-Q
Y-o-Y
Y-o-Y
%
20
Non-Interest Expenses
Non-Interest expenses had a marginal increase of 0.2%, explained by the evolution of
personnel expenses, which show an annual drop. This, explained by the entry of the
subcontracting labor reform law, which has a specific impact in personnel expenses given the
payment of employees participation in the company’s profit (PTU by its acronym in Spanish).
The efficiency ratio (measured as expenses divided by revenues) was 37.8% at the end of
September 2021, it was 275 bp lower than the previous year.
However, we maintain a strong physical infrastructure network with 1,721 branches and 13,139
ATMs, in addition to a wide range of digital applications and services to meet the current and
future needs of our growing customer base.
Operating revenues, expenses and efficiency (%)
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
%
Non-Interest Expenses
3Q 2Q 3Q 9M 9M
Million pesos
2020 2021 2021 2020 2021
Administrative and operating expenses
10,310 11,649 8,147 (30.1) (21.0) 31,322 30,949 (1.2)
Rents
1,494 1,679 1,743 3.8 16.7 4,550 5,121 12.5
Depreciation and amortization
1,467 1,477 1,488 0.7 1.4 4,381 4,419 0.9
Taxes
1,107 1,284 752 (41.4) (32.1) 3,450 3,301 (4.3)
Deposit guarantee fund (IPAB)
1,591 1,557 1,603 3.0 0.8 4,696 4,724 0.6
Administrative and promotional expenses 15,969 17,646 13,733 (22.2) (14.0) 48,399 48,514 0.2
Y-o-Y
%
Q-o-Q
Y-o-Y
119,359
128,337
48,399
48,514
40.55
37.80
30
35
40
45
50
55
60
65
70
75
80
9M20 9M21
Operating
revenues
Expenses
Efficiency
21
Capital and Liquidity
BBVA Mexico estimated capitalization index stood at 18.1% at the end of September 2021,
composed by 15.52% of Tier 1 capital and 2.58% of Tier 2 capital a 129 bp increase in the index
compared with the previous year.
BBVA Mexico fully covers the minimum capital requirements. Derived from the additional
allocation of capital after being classified as a domestic systemically important financial
institution (Grade IV), it is necessary to cover with an additional buffer of 1.5%, which implies
maintaining a minimum requirement of 12.0% for the total capital ratio.
BBVA Mexico estimated capitalization index
*Preliminary information. The figures are under review by authorities.
Despite the complex environment, BBVA Mexico maintains favorable liquidity levels to
continue growing. The regulatory liquidity ratio, defined as Liquid assets / Liquid liabilities,
stood at 68.7%. The Coeficient Coverage Ratio (Local LCR) stood at 216.69%.
Regulatory Liquidity Ratio (%)
Local LCR (%)
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Capitalization
Million pesos
Tier 1 capital 225,935 240,847 256,067
Tier 2 capital 56,086 49,328 42,625
Net capital 282,021 290,175 298,693
Credit Market, Operative Credit
Market, Operative
Credit
Market, Operative
Risk & Credit Risk Risk & Credit Risk Risk & Credit Risk
Risk-weighted assets
1,142,508 1,677,328 1,096,289 1,658,890 1,081,691 1,650,203
Tier 1 as % of risk-weighted assets
19.78% 13.47% 21.97% 14.52% 23.67% 15.52%
Tier 2 as % of risk-weighted assets
4.91% 3.34% 4.50% 2.97% 3.94% 2.58%
Total capital ratio
24.69% 16.81% 26.47% 17.49% 27.61% 18.10%
September
2020
September
2021
June
2021
66.9
72.7
68.7
Sep.20 Jun.21 Sep.21
185.24
206.89
216.69
Sep.20 Jun.21 Sep.21
22
Financial Indicators
INFRASTRUCTURE
ATMs: Include those that have activity during the quarter.
PROFITABILITY
a) Net Interest Margin adjusted (NIM adjusted): Financial margin after provisions for loan losses (annualized) /
Average productive assets
Average productive assets: Cash + Securities + Repo debtors + securities lending + derivatives + performing
loans + Receivable benefits from securitization transactions + Valuation adjustments derived from hedges
of financial assets.
b) Net Interest Margin (NIM): Net interest income (annualized) / Average total assets.
c) Operating efficiency: Expenses (annualized) / Average total assets.
d) Efficiency index: Administrative and promotional expenses / Net interest income + commissions and fee
income + trading income + other operating income (expense).
e) Productivity Index: Commissions and fees, net / Promotion and administrative expenses.
f) Return on equity (ROE): Net income (annualized) / Average capital.
g) Return on assets (ROA): Net income (annualized) / Average total assets.
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
3Q 4Q 1Q 2Q 3Q 9M 9M
2020 2020 2021 2021 2021 2020 2021
Infrastructure Indicators (#)
Branches 1,814 1,746 1,728 1,725 1,721 1,814 1,721
ATMs 12,923 12,950 12,957 13,014 13,139 12,923 13,139
Employees 33,347 33,313 33,759 33,525 37,889 33,347 37,889
Profitability Indicators (%)
a) NIM adjusted (interest bearing assets) 4.4 2.9 4.0 4.6 5.2 3.9 4.6
b) NIM (total assets) 5.2 5.4 5.4 5.3 5.5 5.4 5.4
c) Operating efficiency 2.6 2.7 2.8 2.9 2.2 2.8 2.6
d) Efficiency (cost to income) 38.6 38.5 41.9 40.5 31.2 40.5 37.8
e) Productivity index 43.2 46.8 42.2 42.0 54.4 40.7 45.6
f) ROE 22.3 12.8 15.9 21.5 30.1 17.0 22.2
g) ROA 2.1 1.24 1.60 2.18 3.10 1.7 2.3
Asset Quality Indicators (%)
h) NPL ratio 2.0 3.0 2.6 2.4 1.9 2.0 1.9
i) Coverage ratio 159.8 128.7 137.4 141.5 149.8 159.8 149.8
Solvency Indicators (%)
j) Core equity tier 1 ratio 13.5 14.4 14.6 14.5 15.5 13.5 15.5
k) Tier 1 ratio 13.5 14.4 14.6 14.5 15.5 13.5 15.5
l) Total capital ratio 16.8 17.5 17.7 17.5 18.1 16.8 18.1
m) Leverage ratio 9.8 10.3 10.3 9.6 10.2 9.8 10.2
Liquidity Indicators (%)
n) Liquidity ratio (CNBV requirement) 66.9 65.7 67.0 72.7 68.7 66.9 68.7
o) Liquidity ratio (Loans / Deposits) 93.9 90.7 89.9 90.3 90.1 93.9 90.1
p) Liquidity Coverage Coefficient (Local LCR) 185.24 190.49 203.12 206.89 216.69 185.24 216.69
23
ASSET QUALITY
h) NPL ratio: Non performing loans / Total loan portfolio.
i) Coverage Ratio: Allowance for loan losses / Non performing loans.
SOLVENCY
j) Core Equity Tier 1 Ratio: CET1 Capital / Risk Weighted Assets to credit risk, market and operational (applied
in Mexico since January 2013).
k) Tier 1 Ratio: Tier 1 Capital / Risk Weighted Assets to credit risk, market and operational (applied in Mexico
since January 2013).
l) Total Capital Ratio: Net Capital / Risk Weighted Assets to credit risk, market and operational (applied in
Mexico since January 2013).
m) Leverage Ratio: Risk Capital / Exposure.
LIQUIDITY
n) Liquidity Ratio: Liquid assets / Liquid liabilities.
Liquid Assets: Cash and cash equivalents + Trading (securities) + Available for sale (securities).
Liquid Liabilities: Demand deposits + Interbank loans and loans from other entities payable on
demand + Interbank loans and loans from other entities short term.
o) Loans / Deposits: Performing loans / Core deposits (demand + time).
p) Liquidity Coverage Ratio (Local LCR): Computable Liquid Assets / 30-day stressed Net Outflows (BBVA
Mexico information). Quarterly average. Preliminary figure
24
Ratings
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México Ratings
Long Term Short Term Outlook
Standard and Poor's
Issuer Credit Rating - Foreign Currency
BBB A-2 Negative
Issuer Credit Rating - Local Currency
BBB A-2 Negative
National Scale
mxAAA mxA-1+ Stable
Stand Alone Credit Profile (SACP)
bbb+
Moody's
Bank Deposits - Foreign Currency
Baa1 P-2 Negative
Bank Deposits - Domestic Currency
Baa1 P-2 Negative
National Scale Rating Bank Deposits
Aaa.mx MX-1
Baseline Credit Assessment (BCA)
baa1
Fitch
Issuer Default Rating - Foreign Currency
BBB F2 Stable
Issuer Default Rating - Local Currency
BBB F2 Stable
National Scale Rating
AAA(mex) F1+(mex) Stable
Viability Rating (VR)
bbb
25
Issuances
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Issuances
Instruments Amount
Original
Currency
Issue Date Due Date Call Date
Term
(years)
Rate
Senior Debt S&P Moody's Fitch
BACOMER 07U 2,240 UDIS 30-ene-07 09-jul-26 19.4 4.36% Baa1/Aaa.mx AAA(mex)
BACOMER 22224 1,000 MXN 07-jun-12 26-may-22 10.0 TIIE28 + 85 Baa1/Aaa.mx AAA(mex)
Senior Notes Dlls 2024 750 USD 03-abr-14 10-abr-24 10.0 4.375% Baa1 BBB
Senior Notes Dlls 2025 500 USD 15-sep-20 18-sep-25 5.0 1.875% Baa1 BBB
BACOMER 17-2 1,858 MXN 26-may-17 20-may-22 5.0 TIIE28 + 35 Baa1/Aaa.mx AAA(mex)
BACOMER 18 3,500 MXN 27-sep-18 21-sep-23 5.0 TIIE28 + 19 Baa1/Aaa.mx AAA(mex)
BACOMER 19 5,000 MXN 21-jun-19 17-jun-22 3.0 TIIE + 7 Baa1/Aaa.mx AAA(mex)
BACOMER 19-2 5,000 MXN 21-jun-19 11-jun-27 8.0 8.49% Baa1/Aaa.mx AAA(mex)
BACOMER 20 7,123 MXN 10-feb-20 08-feb-23 3.0 TIIE28 + 5 Baa1/Aaa.mx AAA(mex)
BACOMER 20-2 6,000 MXN 10-feb-20 05-feb-25 5.0 TIIE28 + 15 Baa1/Aaa.mx AAA(mex)
BACOMER 20D 100 USD 10-feb-20 27-ene-23 3.0 Libor3M + 49 Baa1/Aaa.mx AAA(mex)
Subordinated Debt
Subordinated Debentures Tier 2 2022 1,500 USD 19-jul-12 30-sep-22 10.2 6.75% Baa2 BB
Subordinated Debentures Tier 2 15NC10 2029 200 USD 06-nov-14 12-nov-29 12-nov-24 15NC10 5.35% BB Baa3 BB
Subordinated Debentures Tier 2 15NC10 2033 1,000 USD 17-ene-18 18-ene-33 18-ene-28 15NC10 5.125% BB BB
Subordinated Debentures Tier 2 15NC10 2034 750 USD 05-sep-19 13-sep-34 19-sep-29 15NC10 5.875% Baa3 BB
Mortgage Securitization
BACOMCB 09-3 3,616 MXN 07-ago-09 24-may-29 19.8 10.48% mxAAA AAA(mex)
Ratings
26
Financial Statements
Balance Sheet
Assets
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Assets Sep Dec Mar Jun Sep
Million pesos 2020 2020 2021 2021 2021
CASH AND CASH EQUIVALENTS 217,933 223,219 255,662 309,541 326,891
Margin call accounts 26,005 32,261 19,360 15,187 11,914
SECURITIES 569,595 574,938 578,229 587,175 539,003
Trading
295,390 281,920 267,039 289,679 242,830
Available for sale
192,538 211,788 229,436 228,254 226,623
Held to maturity
81,667 81,230 81,754 69,242 69,550
Debtors from repurchase agreement 3,060 15,123 44 38 33
Derivatives 228,687 213,927 156,947 145,882 144,328
Trading
208,343 197,606 143,297 132,680 131,037
Hedging Transactions
20,344 16,321 13,650 13,202 13,291
Valuation adjustments derived from hedges of financial assets 2,129 2,488 1,097 1,102 723
PERFORMING LOANS 1,250,968 1,209,449 1,226,893 1,233,847 1,249,918
Commercial loans 717,641 678,572 694,679 689,817 691,392
Business or commercial activity
534,926 488,878 496,702 499,068 505,222
Financial entities
26,762 28,079 24,558 24,156 22,065
Government entities
155,953 161,615 173,419 166,593 164,105
Consumer 288,427 281,968 279,195 285,434 293,398
Mortgage 244,900 248,909 253,019 258,596 265,128
Residential Mortgages
237,505 241,968 246,255 252,158 258,998
Social Housing
7,395 6,941 6,764 6,438 6,130
NON PERFORMING LOANS 25,940 37,484 32,980 30,100 24,519
Commercial loans 9,932 11,983 12,131 12,386 8,098
Business or commercial activity
9,932 11,983 12,131 12,375 8,098
Government entities
0 0 0 11 0
Consumer 7,778 16,147 11,614 8,837 8,184
Mortgage 8,230 9,354 9,235 8,877 8,237
Residential Mortgages
7,729 8,824 8,747 8,448 7,847
Social Housing
501 530 488 429 390
TOTAL LOANS 1,276,908 1,246,933 1,259,873 1,263,947 1,274,437
Allowance for loan losses (41,463) (48,236) (45,301) (42,581) (36,731)
TOTAL LOANS, NET 1,235,445 1,198,697 1,214,572 1,221,366 1,237,706
Other accounts receivable, net 97,219 106,527 118,277 146,908 179,780
Repossessed assets, net 1,415 1,317 1,241 1,188 1,033
Property, furniture and equipment, net 36,170 36,293 35,556 35,155 34,974
Equity investments 1,121 1,135 1,153 1,086 1,089
Deferred taxes, net 21,352 22,416 23,609 23,322 26,201
Other assets 12,433 14,529 7,561 6,923 7,062
Deferred charges, prepaid expenses and intangibles 12,433 14,529 7,561 6,923 7,062
TOTAL ASSETS 2,452,564 2,442,870 2,413,308 2,494,873 2,510,737
27
Liabilities & Stockholders’ Equity
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Liabilities & Stockholders' Equity Sep Dec Mar Jun Sep
Million pesos 2020 2020 2021 2021 2021
TOTAL DEPOSITS
1,420,642 1,417,071 1,450,011 1,454,654 1,475,377
Demand deposits
1,047,863 1,084,227 1,116,008 1,132,151 1,152,512
Time Deposits
278,844 243,836 243,672 229,482 229,534
Customer deposits
258,218 229,974 237,622 223,838 225,064
Money market
20,626 13,862 6,050 5,644 4,470
Bonds
89,006 84,052 85,296 87,743 88,170
Deposits global account without movements
4,929 4,956 5,035 5,278 5,161
INTER BANK LOANS AND LOANS FROM OTHER ENTITIES
19,374 17,861 30,885 30,456 31,639
Payable on demand
0 0 0 0 1,000
Short- term
7,757 6,985 6,070 6,171 5,984
Long- term
11,617 10,876 24,815 24,285 24,655
Creditors from repurchase agreements 246,458 263,716 256,581 309,491 264,775
Securities creditors 1 5 3 1 4
COLLATERALS SOLD OR DELIVERED IN GUARANTEE
49,932 63,841 64,413 53,068 51,695
Repurchase
0 0 19,963 12,591 7,321
Securities lending
49,932 63,841 44,450 40,477 44,374
DERIVATIVES
244,304 223,841 162,609 152,846 156,876
Trading
229,061 210,971 155,273 146,775 150,510
Hedge transactions
15,243 12,870 7,336 6,071 6,366
Valuation adjustments derived from hedges of financial liabilities 9,659 7,915 4,796 4,742 4,168
OTHER PAYAB LES
127,689 113,665 118,659 163,370 180,531
Profit taxes payable
0 0 0 1,726 3,700
Employee profit sharing (PTU) payable
2 59 57 57 2,004
Transaction settlement creditors
78,298 55,312 62,515 68,465 68,930
Creditors and margin accounts
0 1,179 348 348 0
Creditors from collaterals received in cash
24,937 19,762 21,444 15,975 17,279
Accrued liabilities and other
24,452 37,353 34,295 76,799 88,618
Subordinated debt 93,446 85,181 70,869 69,943 71,293
Deferred credits and advanced collections 7,373 7,540 7,604 7,539 7,444
TOTAL LIABILITIES 2,218,878 2,200,636 2,166,430 2,246,110 2,243,802
SUBSCRIBED CAPITAL
40,003 40,003 40,003 40,003 40,003
Paid- in capital
24,143 24,143 24,143 24,143 24,143
Share premium
15,860 15,860 15,860 15,860 15,860
EARNED CAPITAL
193,645 202,194 206,837 208,718 226,885
Capital reserves
6,901 6,901 6,901 6,901 6,901
Results of prior years
160,008 160,008 196,175 185,095 185,095
Unrealized gain on available- for- sale securities
707 2,820 (1,998) (3,332) (4,649)
Result from valuation of cash flow hedging instruments
283 (96) (430) (562) (595)
Accummulated effect by conversion
440 440 440 0 0
Redefined benefits to employees
(3,274) (4,046) (3,953) (2,435) (2,326)
Net income
28,580 36,167 9,702 23,051 42,459
MAJORITY STOCKHOLDERS' EQUITY
233,648 242,197 246,840 248,721 266,888
Non- controlling interest in consolidated subsidiaries 38 37 38 42 47
TOTAL STOCKHOLDERS EQUITY 233,686 242,234 246,878 248,763 266,935
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,452,564 2,442,870 2,413,308 2,494,873 2,510,737
28
Memorandum accounts
“The historical balance of the capital stock as of September 30, 2021 is 4,248 million pesos.
This consolidated balance sheet is prepared in accordance with the Accounting Criteria for Credit Institutions issued by the National Banking
and Securities Commission, based on the Articles 99, 101 and 102 of the Mexican Credit Institutions Law, of general and compulsory
observance, consistently applied, reflecting the operations conducted by the Bank up to the above date, which were realized and valued in
accordance with sound banking practices and applicable legal and administrative disposals.
The Board of Directors under the responsibility of the managers who subscribe it approved this consolidated financial statement.”
Eduardo Osuna Osuna
Luis Ignacio De La Luz Dávalos
Adolfo Arcos González
Ana Luisa Miriam Ordorica Amezcua
CEO
CFO
Head of Internal Audit
Head of Accounting
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Memorandum accounts Sep Dec Mar Jun Sep
Million pesos 2020 2020 2021 2021 2021
Contingent assets and liabilities 771 805 904 942 1,022
Credit commitments 642,252 638,851 626,480 632,070 652,357
In trusts 434,569 429,883 426,344 430,298 470,220
Under mandate 212 223 227 233 196
Assets in trust or under mandate 434,781 430,106 426,571 430,531 470,416
Assets in custody or under administration 212,083 203,467 196,519 225,194 243,036
Collaterals received by the institution 79,341 131,586 110,591 92,679 96,369
Collaterals received and sold or pledged as collateral by the institution 67,135 106,906 91,892 83,089 78,748
Investment banking transactions on behalf of third parties, net 1,528,642 1,604,841 1,695,175 1,808,667 1,904,929
Accrued interest on non- performing loans 3,344 3,524 3,312 3,424 2,465
Other record accounts 3,436,271 3,336,242 3,423,140 3,464,835 3,562,232
29
P&L (Last 5 quarters)
“This consolidated income statement is prepared in accordance with the Accounting Criteria for Credit Institutions issued by the National
Banking and Securities Commission, based on the Articles 99, 101 and 102 of the Mexican Credit Institutions Law, of general and compulsory
observance, consistently applied, reflecting the operations conducted by the Bank up to the above date, which were realized and valued in
accordance with sound banking practices and applicable legal and administrative disposals.
The Board of Directors under the responsibility of the managers who subscribe it approved this consolidated financial statement.”
Eduardo Osuna Osuna
Luis Ignacio De La Luz Dávalos
Adolfo Arcos González
Ana Luisa Miriam Ordorica Amezcua
CEO
CFO
Head of Internal Audit
Head of Accounting
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Income Statement 3Q 4Q 1Q 2Q 3Q 9M 9M
Million pesos 2020 2020 2021 2021 2021 2020 3021
interest income 44,036 43,523 42,722 42,534 44,815 137,653 130,071
interest expenses (12,071) (10,688) (10,224) (9,948) (10,440) (44,960) (30,612)
Net interest income 31,965 32,835 32,498 32,586 34,375 92,693 99,459
Provisions for loan losses
(6,987) (16,257) (10,445) (6,471) (4,624) (30,833) (21,540)
Net interest income after provisions for loan losses 24,978 16,578 22,053 26,115 29,751 61,860 77,919
Commissions and fees charged 10,847 12,433 11,568 12,429 12,715 31,663 36,712
Commissions and fees paid (3,941) (4,643) (4,343) (5,014) (5,239) (11,950) (14,596)
Total Fees & Commissions
6,906 7,790 7,225 7,415 7,476 19,713 22,116
Trading income
1,898 1,740 848 2,241 2,133 6,693 5,222
Other operating income
607 803 282 1,293 (35) 260 1,540
Total operating revenues 34,389 26,911 30,408 37,064 39,325 88,526 106,797
Non-interest expense
(15,969) (16,638) (17,135) (17,646) (13,733) (48,399) (48,514)
Net operating income 18,420 10,273 13,273 19,418 25,592 40,127 58,283
Share in net income of unconsolidated subsidiaries and affiliates
18 17 18 26 13 22 57
Income before income tax and profit sharing 18,438 10,290 13,291 19,444 25,605 40,149 58,340
Tax incurred (7,255) (4,384) (2,591) (5,424) (4,950) (12,393) (12,965)
Deferred taxes 1,481 1,680 (997) (667) (1,242) 824 (2,906)
Net Taxes
(5,774) (2,704) (3,588) (6,091) (6,192) (11,569) (15,871)
Income before non-controlling interest 12,664 7,586 9,703 13,353 19,413 28,580 42,469
Non-controlling interest
(1) 1 (1) (4) (5) 0 (10)
Net Income 12,663 7,587 9,702 13,349 19,408 28,580 42,459
30
Cash Flow Statement
“This consolidated cash flow statement is prepared in accordance with the Accounting Criteria for Credit Institutions issued by the National
Banking and Securities Commission, based on the Articles 99, 101 and 102 of the Mexican Credit Institutions Law, of general and compulsory
observance, consistently applied, reflecting the operations conducted by the Bank up to the above date, which were realized and valued in
accordance with sound banking practices and applicable legal and administrative disposals.
The Board of Directors under the responsibility of the managers who subscribe it approved this consolidated financial statemen t.”
Eduardo Osuna Osuna
Luis Ignacio De La Luz Dávalos
Adolfo Arcos González
Ana Luisa Miriam Ordorica Amezcua
CEO
CFO
Head of Internal Audit
Head of Accounting
BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México
Cash Flow Statement (from January 1st to September 30th 2021)
Million pesos
Net income 42,459
Adjustments derived from items not involving cash flow
Profit or loss derived from the valuation of investment and financing activities
Depreciation of property, furniture and fixtures 1,760
Amortization of installation expenses 1,377
Amortization of intangible assets 1,281
Provisions 3,995
(440)
Income taxes 15,871
Share in net income of unconsolidated subsidiaries and affiliated companies (57)
Noncontrolling interest 10 23,797
66,256
Operating activities
Change in margin call accounts 20,595
Change in investments in securities 26,393
Change in debtors from repurchase agreement 15,091
Change in derivatives (assets) 66,569
Change in loan portfolio (net) (33,927)
Change in repossessed assets 283
Change in other operating assets (77,331)
Change in deposits 50,942
Change in interbank loans and other loans from other entities 13,661
Change in creditors from repurchase agreements 1,059
Change in securities lending (1)
Change in collaterals sold or delivered in guarantee (12,147)
Change in derivatives (liabilities) (60,462)
Change in subordinated obligations with liability characteristics (16,155)
Change in other operating liabilities
64,664
Change in hedging instruments (of hedge items related to operation activities)
(6,308)
Income taxes payment
(6,024)
Net cash flows used in operating activities
46,902
Investment activities
Proceeds from the disposal of property, furniture and fixtures 50
Payments for the acquisition of property furniture and fixtures (1,868)
103
Proceeds from cash dividends 1
Payments for acquisition of intangible assets (890)
Net cash flows used in investment activities (2,604)
Financing activities
Cash dividends paid (11,080)
Net cash flows used in financing activities (11,080)
Net increase or decrease in cash and cash equivalents 99,474
Effects of changes in cash and cash equivalents 4,198
Cash and cash equivalents at the beginning of the year 223,219
Cash and cash equivalents at the end of the year 326,891
Changes in Stakeholder’s Equity
“This consolidated variation in stakeholders’ equity statement is prepared in accordance with the Accounting Criteria for Credit Institutions issued by the National Banking and Securities
Commission, based on the Articles 99, 101 and 102 of the Mexican Credit Institutions Law, of general and compulsory observance, consistently applied, reflecting the operations conducted by
the Bank up to the above date, which were realized and valued in accordance with sound banking practices and applicable legal and administrative disposals.
The Board of Directors under the responsibility of the managers who subscribe it approved this consolidated financial statement.”
Eduardo Osuna Osuna
Luis Ignacio De La Luz Dávalos
Adolfo Arcos González
Ana Luisa Miriam Ordorica Amezcua
CEO
CFO
Head of Internal Audit
Head of Accounting
BBVA México, S.A., Institución de Banca Múltiple, Grupo
Financiero BBVA México
Subscribed
Capital
Earned
Capital
Million pesos
Paid in Capital
Share
Premium
Capital
Reserves
Results of
prior years
Unrealized Gain on
Available for Sale
Securities
Result from
Valuation of Cash
Flow Hedging
Instruments
Result from
Conversion of
Foreign
Subsidiaries
Redefined
benefits to
employees
Net Income
Balances as of December 31st, 2020 24,143 15,860 6,901 160,008 2,820 (96) 440 (4,046) 36,167 242,197 37 242,234
HOLDERS' MOVEMENTS IN LINE WITH STOCKHOLDERS
Subscription of shares ( Hipotecaria Nacional merger) 183 183
Transfer from net income to results of prior years 36,167 (36,167) 0
Decree of dividends (11,080) (11,080) (11,080)
Total 0 0 0 25,087 0 0 0 0 (36,167) (11,080) 0 (11,080)
HOLDERS MOVEMENTS IN RECOGNITION TO THE REVENUES
Net income 42,459 42,459 10 42,469
Result from valuation of securities available for sale (7,469) (7,469) (7,469)
Result from valuations of Cash Flow Hedging (499) (499) (499)
Recognition in the preventive estimation for credit risks due to a
change in rating methodology
(440) (440) (440)
Redefined benefits to employees 1,720 1,720 1,720
Total 0 0 0 0 (7,469) (499) (440) 1,720 42,459 35,771 10 35,781
Balances as of September 30th, 2021 24,143 15,860 6,901 185,095 (4,649) (595) 0 (2,326) 42,459 266,888 47 266,935
Majority
Stockholder´s
Equity
Non Controlling
Interest in
Consolidated
Subsidiaries
Total
Stockholder´s
Equity
Regulatory accounting pronouncements recently issued
I. Adoption of international standard
a. According to the Resolution that modifies the general provisions applicable to credit
institutions, published in the Diario Oficial de la Federación (DOF) on December 4, 2020,
the CNBV has resolved to adopt the IFRS 9, for which it is necessary to update the
accounting criteria applicable to credit institutions, to make them consistent with the
financial and international reporting standards contained in this resolution, which will allow
having transparent and comparable financial information with other countries, with its
entry into force on January 1, 2022.
BBVA Mexico’s administration is in the process of determining the effects of the adoption of
these modifications to the accounting criteria applicable to credit institutions.
b. In accordance with the amendments that modifies the general provisions applicable to
credit institutions, published in the DOF on December 4, 2020, the CNBV has resolved to
modify the following Financial Reporting Standards (FRS), which had previously been
published in the DOF of December 27, 2017; and this will be effective as of January 1, 2022
rather than on January 1
st
, 2019.
The following is a brief description of the main changes with application as of January 1, 2022:
Mexican FRS B-17 “Fair Value Determination”- It defines fair value as the exit price that
would be received for selling an asset, or paid to transfer a liability in an orderly transaction
between market participants at the valuation date. It is mentioned that fair value is a market-
based determination and not on a specific value of an asset or a liability and that, when
determining the fair value, the entity should use assumptions that market participants would
use when setting the price of an asset or a liability under current market conditions as of a
specific date, including assumptions about risk. As a result, the entity’s intention to hold or
liquidate an asset, or otherwise satisfy a liability, is not relevant in determining fair value.
Mexican FRS C-3 “Accounts receivable”- Main changes issued for this FRS are shown
below:
It leaves the Bulletin C-3 “Accounts receivable” without effect.
Specifies that accounts receivable based on a contract represent a financial instrument,
while some of the other accounts receivable generated by a legal or fiscal provision may
have certain characteristics of a financial instrument, such as generating interest, but
they are not considered as a financial instrument.
It establishes that the provisions for loan losses for commercial accounts payable is
recognized from the moment the income is accrued, based on expected credit losses.
33
It establishes that, from the initial recognition, the value of money over time must be
considered, so if the effect of the present value of the account receivable is important in
view of its term, it must be adjusted based on its present value. The effect of the present
value is relevant when the payment of the account receivable is agreed, in whole or in
part, for a term greater than one year, since in these cases a financing operation exists.
The accounting changes that arise must be recognized retrospectively, however, the valuation
effects can be recognized prospectively.
Mexican FRS C-9 “Provisions, contingencies and commitments”- It leaves without effect
the Bulletin C-9 “Liabilities, provisions, contingent assets and liabilities and commitments”, its
scope is reduced by relocating the issue related to the accounting treatment of financial
liabilities in FRS C-19 “Financial instruments payable” and it modifies the definition of a liability
as “virtually unavoidable” and including the term “likely”. First time adoption of this Mexican
FRS does not generate accounting changes in the financial statements of the entities.
Mexican FRS C-16 “Impairment of Financial Instruments Receivable (FIR)”- It indicates
that, to determine the recognition of the expected loss, the historical experience that the entity
has in credit losses should be considered; as well as, current conditions ; as well as, reasonable
and sustainable forecasts for the different measurable future events that could affect the
amount of future cash flows to be recovered from the FIR.
It also notes that the expected loss should be recognized when, having increased credit risk, it
is concluded that a portion of the FIR future cash flows will not be recovered. Any accounting
changes that arise should be recognized retrospectively.
Mexican FRS C-19 “Financial instruments payable”- The main characteristics issued for
this FRS are shown below:
The possibility of valuing certain financial liabilities at their fair value is established when
certain conditions are met.
Value long-term liabilities at their present value at initial recognition.
When restructuring a liability, without substantially modifying the future cash flows to
settle it, the costs and commissions disbursed in this process will affect the amount of
the liability and will be amortized using a modified effective interest rate, instead of
directly affecting the net income or loss.
It incorporates the provisions in IFRIC 19 “Extinction of Financial Liabilities with Capital
Instruments”, an issue that was not included in the existing regulations.
The effect of extinguishing a financial liability must be presented as a financial result in
the comprehensive income statement.
It introduces the concepts of amortized cost to value financial liabilities and the effective
interest method, based on the effective interest rate.
34
Any accounting changes that arise must be recognized retrospectively.
Mexican FRS C-20 “Financial instruments to collect principal and interest”- The main
characteristics issued for this FRS are shown below:
The way of classifying the financial instruments as assets is modified, since the concept of
intention to acquire and hold them to determine their classification is discarded, instead the
adoption of the concept business model of the administration.
The classification includes financial instruments whose objective is to collect the
contractual cash flows and obtain a gain on the contractual interest they generate,
having characteristics of a loan.
They include both financial instruments generated by sales of goods or services,
financial leases or loans, as well as those acquired in the market.
Mexican FRS D-1 “Revenues from clients’ contracts” - The main changes issued for this
FRS are shown below:
Control transfer, based on the opportunity to recognize income.
Identify the obligations to be complied with in a contractual agreement.
The allocation of the transaction price among the complied obligations based on the
independent sales price.
The introduction of the concept of conditioned account receivable.
The recognition of collection rights.
The valuation of income.
Mexican FRS D-2 “Revenue, costs from contracts with clients” – The main change in this
rule is the separation of the regulations regarding the recognition of revenue from contracts
with clients from the regulations for the recognition of costs for contracts with clients.
Mexican FRS D-5 “Leasing”- Effective from January 1, 2022. Its early application is allowed
for those who use FRS D-1 “Revenue from contracts with clients” and FRS D-2 “Costs from
contracts with clients”, before the date of initial application of this FRS. It leaves without effect
the Bulletin D-5 “Leases”. The application for the first time of this FRS generates accounting
changes in the financial statements mainly for the lessee and grants different options for
recognition. Among the main changes are the following:
Eliminates the classification of leases as operational or capitalizable for a lessee, and
the latter must recognize a liability for leasing at the present value of the payments and
an asset for use of rights for the same amount, of all leases with a duration greater than
12 months, unless the underlying asset is of low value.
An expense for depreciation or amortization of the right-of-use assets and an interest
expense on the lease liabilities are recognized.
35
It modifies the presentation of related cash flows, as cash outflows from operating
activities are reduced, with an increase in outflows of cash flows from financing
activities.
It modifies the recognition of the gain or loss when a seller-lessee transfers an asset to
another entity and leases that asset in return.
The accounting recognition by the lessor has no changes in relation to the previous
Bulletin D-5, and only some disclosure requirements are added.
c. New Standard Pronouncements issued by CINIF
In December 2020, the CINIF issued a document titled “Improvements to Mexican FRS 2021”,
which contains specific amendments to some existing Mexican FRS. The main amendments
that generate accounting changes are the following:
Mexican FRS B-1 “Accounting changes and error corrections”- To converge with FRS 8 of
IFRS, prospective application is incorporated when it is impractical to determine the
accumulated effects of an accounting change or the correction of an error . In those cases, the
entity should recognize the effects of the change in the error correction in the current
accounting period.
The amendment to this FRS comes into force for the years beginning on January 1, 2021;
allowing its early application for fiscal year 2020. The accounting changes that arise must be
recognized through prospective application.
Mexican FRS C-19 “Financial instruments payable” - Establishes that now the proceeds
from forgiveness received or granted should be presented within the results related to
operating activities, instead of being presented in comprehensive income.
The amendment to this FRS comes into force for the years beginning on January 1, 2021;
allowing its early application for fiscal year 2020. The accounting changes that arise must be
recognized based on the provisions of FRS B-1.
Mexican FRS C-20 “Financial instruments to collect principal and interest” - Establishes
that now the effects of the renegotiation of an IFCPI must be presented within the results
related to operating activities, instead of being presented in comprehensive income.
The amendment to this FRS comes into force for the years beginning on January 1, 2021;
allowing its early application for fiscal year 2020. The accounting changes that arise must be
recognized based on the provisions of FRS B-1.
Mexican FRS D-5 “Leasing” - 1) establishes that the mandatory disclosures of the expense
related to short-term and low-value leases for which the right-of-use asset has not been
recognized, separately. 2) It incorporates the method to determine the proportion that
36
corresponds to the rights of use retained by the seller-lessee, as well as their accounting
recognition.
The Institution's Management is in the process of determining the effects of adopting the new
Financial Reporting Standards and the improvements to the FRS in the financial statements.
* * *
