1st. Quarter IR Agency Alejandro Ramírez Lucia Domville

Transcription

1 1st. Quarter 2014 Investor Relations Jonathan Rangel IRO +52 (55) Israel Becerril IR +52 (55) IR Agency Alejandro Ramírez Lucia Domville

2 Agenda 1 Crédito Real s Outlook 2 Investment Highlights 3 Business Model 4 Funding & Financial Performance 5 Exhibits

3 Key Unique Attributes Target Underserved Market Segments Particularly the segments of the population that are disregarded by other financial institutions A huge market opportunity Distribution with on Site Presence that allows us to reach each customer 10,000 sales reps Diversified Credit Platform that mitigates risks and integrates population to financial services Crédito Real is a leading financial institution in Mexico focusing on consumer lending with a diversified business platform that includes: Payroll Loans, Durable Good Loans, Small Business Loans, Group Loans and Used Car Loans. Scalable Business Model Developed credit analysis systems under customer based parameters Flexibility according to each type of loan Strategic Alliances partnering with specialized operators Unique business model Generates efficiencies & flexibility 3

4 Proven Track Record Starts operations as a durable good loans company 21 years of proven track record Presence in all 32 states 2.6 million customers +5 million loans disbursed +480,000 active customers +10,000 sales representatives 1999 Introduction of Group Loans Partnership with Nexxus Capital Private Equity Acquires 49% of distributor Kondinero payroll distributor in exchange for 18.8% of equity in Crédito Real Acquires 49% of distributor Credifiel payroll distributor Successful placement of its US$425mm, 7.5% Sr. Notes 2011 due 2019, 6 times oversubscribed Distinction Corporate Social Responsible Company (CSR) Free float increase to 47.6% 1993 Reached 100,000 customers 2007 Developed a new corporate image, building a reference brand for credit Distinction One of the Best 100 Financial Companies First public debt issuance Introduction of payroll loans Issuance of its US$210mm, 10.25% Sr. Notes due Successful US$170mm IPO in the Mexican Stock Exchange Introduction of Small Business loans and Used car loans Acquires 49% stake of Crédito Maestro payroll distributor 4

5 Corporate Structure and Management Team Corporate Structure Experienced Management Team More than 500 employees. Distribution network with + 10,000 sales reps. 90 credit & collection analysts. More than 80 strategic alliances. Management with more than 15 years of experience. 4 Committees: Credit, risk and treasury; Executive; Audit and Corporate governance, nominating and compensation. 6 of 11 board members are independent. Main Shareholders 52.4% Free Float 47.6% Founding members are founders of leading manufacturer in the Americas, MABE. Also were shareholders of BANCRECER and BITAL banks, sold in the 70 s to BANORTE and in the 1990 s to HSBC respectively. GRUPO KON are founders of KONDINERO with over 60-year experience in commercial, financial and real estate companies Crédito Real ANGEL ROMANOS CEO Founder of Crédito Real. CEO of the Company since inception. MBA from Wharton School of Business. LORENA CÁRDENAS CFO CFO since Previously GMAC & Nortel Networks CFO. Nearly 20 years of CFO experience. MBA from University of Miami. CARLOS OCHOA COO COO since Master s degree in Economics and Finance from the University of Bristol. LUIS CARLOS AGUILAR PAYROLL COMMERCIAL OFFICER Payroll commercial officer since years with the Company. MBA from IPADE. 49% 49% 49% Service Companies JONATHAN RANGEL IR OFFICER IRO since Former Comerci IR Officer 2010 to MBA from IPADE, CFA Candidate Level III. 49% 23% 51% 99% 5

6 Market opportunity 184% Low penetration of credit Limited access to banking services 128% Consumer Loan Penetration as % GDP Credit Penetration to Private Sector as % GDP Population Segment Population (mm) Bancarization (1) 8.0 A&B 21% 96% 101% C % 26.2% 24.3% 68% 13.6% 12.7% 9.0% 52% 4.0% 28% Cm to C D&E % 57% 25% Canada USA Germany Brazil Colombia Mexico Source: World Bank and Euromonitor. Data of Consumer Loan Penetration to Data of Credit Penetration to Private Sector to 2012, except Canada that is to 2008 Target Market 2013 Note 1: Population utilizing banking services. Income level by bracket (approximate annual amount in USD): A/B +108,400; C+ 76,500; Cm/C 29,700; D 8,900; E 3,400. Strong Government Support Evolution of Population Financial reform should double the current credit penetration as % of GDP within the next 5 years Population (mm) 18 19% 21% Population (mm) 25 28% 56% Actual 2019 SME credit guarantee program allows to limit loss severities to 50% of the principal amount. Crédito Real is in process to guarantee part of its SME loan portfolio 79 Target Market 81% 79% Cm to C, D & E A, B & C+ 92 Source: CNBV 2012, Agustin Carstens (Central Bank Minister) Source: AMAI 6

7 Customer Profile & Market Segmentation Market Segmentation Market Segments Main Competitors % Total Population Banking Penetration CR Segment Focus Customer Profile A&B 6.8% 96% C+ 14.2% 83% C & C- D&E 34.1% 57% 44.9% 25% - Annual average available income of 6,300 USD - To reach a loan for 1,900 USD our customer must save 20% of their available income for 1.5 years - The 86.7% of expenditure is for consumption, housing, transport, health and education - Live in suburban, urban and rural areas that represent 97.0% of total localities (<300,000 people according to INEGI) with a concentration of 54.3% of total adults 7

8 Customers Distribution Rural Transition Semi-Urban Urban Mid-Cities Big Cities Municipalities 27.4% 26.3% 29.4% 13.9% 2.7% 0.4% Adults 1.4% 5.0% 16.4% 31.5% 31.6% 14.2% Number of people 0 to 5,000 5,001 to 15,000 15,001 to 50,000 50,001 to 300, ,001 to 1,000,000 1,000,001 and more Bank branches by Type of Population (1)(a) Crédito Real Customers by Type of Population (b) % of total bank branches Rural Transition Semi-Urban Urban Mid-Cities Big Cities Mexico City % 65% of Credito Real Customers 8% 17% 37% 29% 6% Rural Transition Semi-Urban Urban Mid-Cities Big Cities Source (1) CNBV 2012 Notes (a) number of branches per 10,000 adults (b) Durable goods, SMEs, group loans and used car customers not included 8

9 Distribution Model DISTRIBUTION 25 different distributors & partner in 3 leading loan originators More than 4,000 sales representative More than 100 telephone operators 44 different retailers 1,271 stores Continuous sales force trainee More than 8,000 sales reps. Fondo H, presence in Mexico City and metropolitan area 5 sales reps. Personal in-house brand 12 sales reps. 1 Alliance & 2 Partnerships 82 branches More than 400 promoters INTEREST ALIGNMENT Interest income sharing 50% Risk sharing 50% - principal of account past due > 180 days Rebate from 5% to 7% of future interest Paid up front with no credit risk Operating Margin sharing 30% (interest income interest expense provision) Net Income sharing 50% 49% & 23% equity share respectively in each Partnership ALLOW US TO REACH 342,577 clients 252 agreements 30 states 80 cities About 50% of historical renewal rate 80,921 clients 117 cities 16 states 62% of Approval rate Financing more than 150 business including: manufacturing, distribution and services sector 2 states High customer retention Mom and pop stores Focus on Mexico city ~100 business 64,000 clients 67 cities 20 states Groups of 12 to 25 borrowers About 60% of renewal rate 13 distributors One Partnership with 4 branches in Mexico City suburbs More than 150 locations Rebate from 5% to 7% of future interest Paid up front with no credit risk 51% equity share in Partnership 1,205 clients 14 states 9

10 Strategic Alliances & Partnerships Brief Description Alignment of Interests 3 distributors with 49% ownership. 252 branches. More than 4300 employees. Over 50 years of experience. Interest income sharing 50%. Risk sharing 50%. Exclusivity & Non.compete. Audited Finanlcial Statements. Credito Real is a board member. Handles successful alliances and partnerships always keeping a very good Alignment of Interests SME Lender. Strong customer-relationship. High customer retation. More than 6 years of experience. Receive 30% of operating income. Exclusivity & Non-compete. All transaction require credit Analysis from Credito Real. 13 car dealers. Partnership with 51% stake presence in Mexico City Suburbs. Dealers receive a 5% to 7% share of the interest. Increase sales and margins. No credit risk for dealer. Creal is a board member in the partnership. 2 partnerships with 50% stake. One strategic alliance. Local market leadership within specific territories Bangladesh Model. Over 5 years dedicated to group loans. Net Income Sharing 50%. Synergy between own brands and our partners. Crédito Real is a board member. 44 retailers with well-known regional brands. More than 1,200 stores. Over 8,000 sales reps. Over 50 years of experience. Receive a 5% to 7% share of the interest. Increase sales and margins. No credit risk. 10

11 3.4 billion 1.3 billion 11 billion 2.9 billion 21 billion 5.3 billion Diversified Loan Portfolio Mexico + = LOW RISK Stable Levels of NPLs with Sufficient Reserves (1) NPL Reserves / Total Loan Portfolio 2.0% 1.8% 2.4% 2.2% 2.4% 1.8% 2.1% 1.9% 1.9% 1.9% 1.9% 2.0% 2.0% 1.7% 2.0% 1.9% 1.9% 1.4% 1.6% 1.8% 1.6% 1.7% 1.5% 1.5% 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 Change in Loan Portfolio Payroll Loans Durable Goods Loans Small Business Loans Group Loans Used Cards Loans % % % 1, % 1,050-5% 1,470-7% 1,470-7% 3,990 19% Change in Income Portfolio Payroll Loans Durable Goods Loans Small Business Loans Group Loans Used Cards Loans % % % % % 1, % % % % % 8, % 13,020 62% % % 2, % 3, % 2, % % December 2009 March e March 2011 March e Source: Crédito Real (1) Reserves calculated as end of period allowance for loan losses divided by total loan portfolio 11

12 Scalable Business Model Instead of Better to High Quality Loan Portfolio Growth (1) Competing with distributors that handle; a loan portfolio well-known regional presence business knowledge Customers walking into branches Invest in a partnership Establish a strategic alliance Exclusivity agreements Go for the Customer On site presence Train & develop sales forces 2013 Consumer Portfolio NPL Ratio 14% 12% 10% Banco Azteca BanCoppel Banco Azteca Fully integrated Partnerships & Alliances Loan Portfolio Expansion Operating efficiencies 8% HSBC Standard credit analysis Focus on high income population with high credit penetration Expert & parametric credit analysis developed according to each market segment considering customer behavioral patterns Credit committee for SME loans Focus on middle and low income population with low credit penetration 6% 4% 2% Findep (2) HSBC Banamex Santander Banregio BBVA Bancomer Compartamos Banorte Crédito Real Unique product Diversified Credit Platform 0% 0% 10% 20% 30% 40% 50% Source: (1) Crédito Real, CNBV, Companies filings. Size of the circle reflects size of consumer loan portfolio. Excludes Banco Wal-Mart, BNP Paribas, Banco Ahorro and Famsa CAGR from Information as of 2013 not available % Consumer Portfolio CAGR

13 Key Financial Indicators Debt Profile Local Notes Credit Lines Senior Notes Improving Funding Cost 7, , % 5.4% 10.3% 38% 48% % 4.8% 5.9% 4.7% 10.7% 9.5% 32% 36% Q % 4.7% 4.4% 4.9% 8.7% 9.6% 30% 16% 1Q % 3.9% 7.7% 1Q 13 1Q 14 Average TIIE Spread Debt Maturity Schedule as of 1Q14 Funding Strategy Focus Local Market Credit Lines 144 A 2,851 79% % 5, % Diversify Funding Sources Increase Debt Capacity Asset Liability Management Improve Cost of Funds % % 21% % % 3-0% older 32% 16% 7% 45% 13

14 Key Financial Indicators MX$mm 3,452 CAGR 10 13: 27% 6,237 5,518 7,069 Loan Origination (1) MX$mm CAGR 10 13: 20.6% Collection (1) YoY Growth : 49.3% 1,242 1,854 3,686 18% 27% 55% 5,918 10% 30% 60% 6,375 10% 26% 64% 6,462 1% 6% 11% 14% 69% YoY Growth : 37.6% 1,564 1% 10% 19% 70% 2,153 1% 19% 9% 19% 53% Q 13 1Q Q 13 1Q 14 Payroll Group Durable Goods Small Business Used Cars MX$mm Loan Portfolio Debt / Equity Ratio CAGR 10 13: 40.8% 10,423 YoY Growth : 55.6% 11, ,736 5,512 6,732 7, Q 13 1Q Q Q 2014 Notes: (1) Includes data from strategic distributors and joint ventures 14

15 Key Financial Indicators MX$mm CAGR 10 13: 31.0% 1,912 2,090 2,724 Interest Income (2) NIM % (1)(2) 26.3% 25.6% 23.7% 23.5% 22.8% YoY Growth: 20.0% 19.7% 1, Q Q Q Q 2014 MX$mm CAGR : 34.2% 2,001 Financial Margin (2) Net Income (2) MX$mm CAGR 10 '13 : 67.9% 1,004 1,300 1,436 YoY Growth : 19.6% 614 YoY Growth : 23.2% Q Q Q Q 2014 Source: Crédito Real (1) Net Interest Margin is calculated by dividing annualized financial margin by average quarterly total loan portfolio (2) 1Q14 excludes non-recurring item 15

16 Performance Metrics 34.7% 38.7% 34.2% 31.1% 35.4% Yield (1) (3) Efficiency Ratio 42.6% 37.6% 35.2% 27.4% 27.9% 25.1% 24.4% (2) (3) Q Q Q Q % 41.8% Capitalization (3) ROAE (3) 33.3% 52.8% 27.9% 24.1% 41.6% 24.5% 23.9% 22.4% 27.4% 26.5% Q Q Q Q 2014 Source: Crédito Real. Notes: 1. Calculated as: Interest Income / Average Earnings Assets. 2.Efficiency index consists of administrative and promotion expenses for the period divided by the sum of (a) financial margin and (b) the difference between (i) commissions and fees collected and (ii) commissions and fees paid for the period. 3. 1Q14 excludes non-recurring item 16

17 Focus on Sustainable Growth and Diversification Payroll Loans Loan Portfolio Composition Durable Goods Loans Small Business Loans Group Loans Used Cards Loans 10.5 billion 5% 7% 7% 21 billion 1% 2% 8% 11% 10.4 billion 19% 62% 78% e CAGR % ROE % NPL % CAGR % - 20% ROEe 25% - 30% NPLe 2% - 3% 17

18 ROA & ROE Businesses Stress Scenario 2018 Payroll Durable Goods Group Loans SMEs Used Cars Total Company Total Company Total Company Loan Portfolio Interest Income Funding Cost Financial Margin Provisions Comissions Other income Admin Expenses Operating Result Taxes Subsidiaries Net Income ROA 14% 6% 14% 4% 15% 10% 8% 8% Capitalization 40% 30% 27% ROE 26% 28% 30% D/E

19 Payroll Product Description Target Markets Product Statistics Distribution Network Market Share Loan Description Personal loans for unionized government employees repaid through direct payroll Unionized public employees C+, C and D+ Average annual income USD from $9,000 to $17,000 Avg. loan amount MX$25,374 Avg. term 35 months Avg. annual interest rate 50% - 65% 50% shared with payroll distributors Payment frequency Bi-weekly Delinquency rate 1.3% Customers 342,577 (70% of total Credito Real customers) Avg. yield 29.5% Network in rural & semiurban areas Market of approximately 7 million employees Unserved market 86% 14% Served market Crédito Real Consubanco Crediamigo Others 35% 20% 10% 35% CREAL ConsuBanco Crediamigo Infonacot Banks & other Market share 35% 20% 10% NA NA Product description Distribution Personal loan linked to payroll (low risk) Network in rural areas + 3,00 sales reps branches Integrated operations Integrated operations Different products linked to payroll 80 branches - Mid & Big cities Personal loan linked to a payroll or debit account Branching network / Mid & Big cities CAGR 35% 20% 35% NA NA Interest rate 50% - 60% 50% - 60% 50% - 60% 35% (7% upfront fee) 30% - 40% Average Duration 34 months 36 months 32 months Onsite presence Yes Yes Yes No No Differentiators Collection Trust Credit Analysis & Funding Exclusivity with 3 main distributors / 25 alliances Origination and Collection Process 50% interest income 50% risk sharing Competitive Landscape X Distributors X agreements + 3,000 sales representatives Loan disbursement Lower rates / poor service & complicated loan application process Government Agency Public Sector Employees Smaller public sector presence / branch network model 19

20 Durable Goods Loan Description Origination and Collection Process Product Description Target Markets Product Statistics Loans to finance purchases of durable goods from selected retailers B, C+, C and D Avg. loan amount MX$13,897 Avg. term 12 months Avg. annual interest rate 40% - 50% Payment frequency Monthly Delinquency rate 1.8% Customers 80,921 (17% of total Credito Real customers) Credit Analysis & Funding Retailers Loan disbursement 5% to 7% of interest income Collection Customer servicing 44 retailers 1,271 stores More than 80,000 customers Distribution Network Market Share Well known retailers that uses own sales forces to promote our credit products Consumer loan portfolio CAGR ( ) (1) -36% -6% BNP Fonacot Findep Famsa Banregio Banorte HSBC BBVA Crédtio Real Santander Banamex Banco Azteca Bancoppel 3% 6% 10% 11% 12% 15% 16% 19% Non Banking Financial Institution Commercial Banks Average Commercial Banks 31% 38% 42% Evolution of Loan Portfolio CAGR 30.6% CAGR 16.6% 1, ,990 March 2010 March % 10.1% 19% Strategy Increase credit sales Select new Retailers Compensate Retailers with a portion of interest income with no credit risk Crédito Real works as a financial partner and retailers focus on sales & promotion % total Portfolio Source (1) Company filings presented to CNBV as of December 31, 2013, except Financiera Independencia and FONACOT which were obtained from public filings. Note: Crédito Real consumer loans do not include payroll loans, small business loans, group loans and used car loans *CAGR from Information for 2013 is not available. BNP Paribas refers to BNP PARIBAS PERSONAL FINANCE, S.A. DE C.V.SOFOM, E.N.R. 20

21 Small Business Loan Description Origination and Collection Process Product Description Loans for working capital to independent professionals and small businesses Loan disbursement Collection Target Markets Product Statistics C+, C and C- Loan amount MX $100,000 - $10 000,000 Term 3-36 months Avg. annual interest rate 20% - 30% Payment frequency Monthly Delinquency rate 3.4% Customers 243 Credit Analysis & Funding In-house brand Funding 30% sharing of operating income Fondo H distributor SMEs Distribution Network Personal in-house brand and strategic alliances Evolution of Loan Portfolio Strategy SMEs represents 52% of Mexican GDP and 80% of labor force (1) CAGR 9,1% Business with Credit Access from Commercial banks Increase strategic alliances Market Share Business Clasification Number of Business with Loans Number of Business Rate of Business with Loans SMEs 270,877 3,620, % Micro 225,207 3,472, % Little 36, , % Medium 9,099 22, % Big 3,434 6, % Total 274,311 3,627, % CAGR 2,852.4% ,470 March 2013 March Alignment of interest with distributors: sharing operating margins Exclusivity agreements Source(1) Inegi (2009) and CNBV % 8.75% 7% % total Portfolio 21

22 Group Loans Product Description Loan Description Loans to finance micro-business working capital requirements Origination and Collection Process Loan disbursement Collection Target Markets Product Statistics Women in suburban areas C-, D and E Avg. loan amount MX$3,207 Avg. term 3.5 months / 14.1 weeks Avg. annual interest rate 90% - 110% Payment frequency Weekly Delinquency rate 0.6% Customers 64,000 (13% of total customers) Avg. yield 26.9% Credit Analysis & Funding Funding 50% Net income sharing Own branches Distributor Promoters Customers Groups of borrowers, all members warranty the loans, disbursement of 10% Distribution Network Market Share Source(1) Prodesarrollo Strategic alliances with sales representatives Leaders of the market in terms of Loan portfolio (1) No. Company Loan Portfolio 1 BANCO COMPARTAMOS FINANCIERA INDEPENDENCIA PROVIDENT MÉXICO APOYO ECONÓMICO CAME FINCOMÚN FINCA MÉXICO ALTERNATIVA TE CREEMOS SIEMPRE CRECIENDO BANCO FORJADORES INVIRTIENDO CRÉDITO REAL FINANCIERA FELICIDAD 0.2 Group Lending Presence Key Distribution Metrics 78 branches 62 cities 20 states % total Portfolio Gradual & Constant Improvement CAGR 51.4% CAGR 25.0% ,470 March 2010 March % 1.8% 7% 22

23 Used Cars Loan Description Origination and Collection Process Product Description Loans for used cars Target Markets C+, C and C- Funding 5% to 7% of interest income Car Dealer Product Statistics Loan amount MX $50,000 - $100,000 Term months Avg. annual interest rate 25% - 35% Payment frequency Monthly Income from insurance GPS systems to secure cars Delinquency rate 1.4% Customers 1,205 Credit Analysis Approved Not Approved Funding Financial Statement Consolidation Partner CR Fact Customer Distribution Network Strategic alliances with car dealers that use own sales forces to promote our credit products and partnership with 4 branches Mexico City Suburbs Used Cars Loans Presence Evolution of Loan Portfolio Car loans have the lowest penetration on the loan products of Banks (1) CAGR 63.4%% Market Share Loan Products of Commercial and Development Banks Number of Demographic Type of Product credits Indicator Credit Card 25,906,995 3,108 Personal Loan 7,893, Payroll Loan 4,012, Group Loan 2,749, Car loan (a) 669, Mortgage 1,093, Source(1) CNBV 2012 Demographic indicator: number of credits per 10,000 adults Note (a) New Cars Loan Key Distribution Metrics 4 branches 9 distributors 14 states CAGR 207.5% ,050 March 2013 March % total Portfolio 0.5% 0.9% 5% 23

24 Interest Rate Comparison Crédito Real Mexico (1) Brazil (5) Colombia (6) USA (2) Canada (3) Germany (4) Benchmark 3.50% 11.00% 3.25% 0.25% % 0.25% Credit Card 21.5% % 76% - 323% 20.2% % 10.3% - 28% 14.6% Mortgage 10.9% % 11.90% 7% - 13% 3.50% 1.6% - 3.5% Payroll 50% - 65% 24.4% % 20.0% 30.0% 9.0% (c) 9.0% (c) Durable Goods 40% - 50% 69.3% 38.6% 10.5% 3.3% 3.0% SME's 20% - 32% 14.5% (a) 11.7% 8.2% 7.5% 2.9% Microcredit 90% - 110% 129% % 22.0% 30.9% 11% - 17% 8.5% Used Car Loans 25% - 35% 10.4% % (a) (b) 22.8% (b) 20% (b) 4% - 7.5% (b) 5.5% - 7.2% (b) 1 Source: Banxico, Condusef, Profeco, IMCO, CAME (2) Source: FED, Credit Cards Survey, CBS, Bank rate (3) Source: BOC, Car Loans Canada. 4 Source: European Central Bank, European comission (5) Source: BACEN, Bloomberg, Economic Comission for LATAM and the Caribbean. 6 Source: BANREP, Superintendencia. Notes: (a) Comissions not included (b) Interest rates for new car loans (c) Interest rate for personal loans 24

25 Financial Information Balance Sheet Balance Sheet Ps. Million Without Nonrecurring items Nonrecurring items 1Q'14 1Q'13 Var % Var Var % Var Cash and cash equivalents % % Investments in securities 2, , , % % Securities and derivatives transactions % % Performing loan portfolio Commercial loans 10, , , , % 10, , , , % Total performing loan portfolio 10, , , , % 10, , , , % Non-performing loan portfolio Commercial loans % % Total non-performing loan portfolio % % Loan portfolio 11, , , , % 10, , , , % Less: Allowance for loan losses % % Loan portfolio (net) 10, , , , % 10, , , , % Other accounts receivable (net) 2, , , % 2, , , % Property, furniture and fixtures (net) % % Long-term investments in shares % % Other assets Debt insurance costs, intangibles and others % % Total assets 16, , , , % 15, , , , % Liabilities Notes payable (certificados bursatiles) 1, , , % 3, , , , % Senior notes payable 5, , , , % 2, , , % Bank loans and borrowings from other entities Short-term 2, , , % 1, , , % Long-term 2, , , % 2, , % 4, , , , % 4, , , , % Securities and derivatives transactions Other accounts payable % % Income taxes payable % % Total liabilities 12, , , , % 10, , , , % Stockholders' equity Capital stock 2, , , % 2, , % Earned capital: Accummulated results from rior years 2, , , % 1, % Result from valuation of cash flow hedges, net % % Controlling position in subsidiaries Net income % 1, % Total stockholders' equity 4, , , % 4, , , % Total Liabilities and Stockholders' equity 16, , , , % 15, , , , % 25

26 Financial Information - Profit & Loss Statement Profit & Loss Ps. Millions Without Nonrecurring items items 1Q'14 1Q'13 Var % Var Var % Non-recurring Var Interest Income % 2, , , % Interest Expense (205.8) (205.8) (169.5) % (723.1) (654.8) (612.8) % Financial Margin % 2, , , % Provision for Loan Losses (70.7) (70.7) (78.7) % (404.5) (272.8) (309.0) % Financial Margin adjusted for Credit Risks % 1, , % Commissions and fees paid (15.7) (15.7) (15.9) % (69.7) (69.5) (61.3) % Other income from the operation % % Administrative and promotion expensses (125.7) (125.7) (119.5) % (484.1) (480.5) (465.6) % Operating result % 1, % Income taxes (74.6) (19.7) (94.3) (55.9) % (241.6) (144.4) (102.5) % Income before participation in the results of subsidiaries Participation in the results of subsidiaries and associates % % % % Net Income % 1, % 26

27 Financial Information Ratios Financial Ratios Without nonrecurring items 1Q'14 1Q'13 Var Var Yield 27.4% 29.7% 35.4% -5.7% 31.1% 34.2% 38.7% -3.1% Return on Average Loan Portfolio 10.1% 11.7% 12.7% -1.0% 11.5% 10.0% 8.4% 1.4% ROAE: Return on average stockholders equity 24.1% 27.9% 23.9% 4.0% 24.5% 27.9% 33.3% -3.3% Debt to Equity Ratio Average cost of funds 7.7% 7.7% 9.6% -1.9% 8.7% 9.5% 10.7% -0.8% Efficiency ratio 24.4% 21.7% 27.9% -6.2% 25.1% 35.2% 37.6% -10.1% Capitalization Ratio 41.6% 42.0% 52.8% -10.9% 41.8% 53.4% 26.5% -11.7% Provisions for loan losses as a percentage of total loan portfolio Allowance for loan losses as a percentage of total past-due loan portfolio Total past-due loan portfolio as a percentage of total loan portfolio 2.5% 2.5% 4.4% -1.9% 3.9% 4.1% 5.6% -0.2% 135.6% 135.6% 107.5% 28.1% 128.2% 132.2% 119.7% -3.9% 1.5% 1.5% 1.8% -0.3% 1.5% 1.6% 2.0% -0.1% 27

28 Disclaimer This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This presentation contains statements that constitute forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as expects, plans, will, estimates, projects, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. The Company does not undertake to revise forwardlooking statements to reflect future events or circumstances.