Letter from the General Manager


In 2012, Crédito Real reached a historic milestone after 20 years in operation, we successfully launched our initial public offering ("IPO") on the Mexican Stock Exchange. We raised Ps. 1,617.9 million among domestic and international investors. The resources, together with our current funding strategy, will enable us to finance our business's sustainable growth and to continue serving a population segment usually disregarded by the traditional banking system, while we generate value for our shareholders.

Continuing with the same vertical integration strategy in the Payroll Loans Business, in the course of the year we achieved an agreement to acquire a minority interest in Crédito Maestro, one of the major key players in terms of payroll loans to unionized governmental workers in Mexico. Such an acquisition, in addition to the opportunities deriving from Kondinero and Credifiel, strengthens even more our leadership in the payroll loans segment.
To this date, Crédito Real has over 469 thousand clients, out of which 78% are part of our payroll loan business, 19% are of the durable goods portfolio, and the remaining 3% make up our group loans business. At present, we operate in all of the States of the Mexican Republic through over 3,000 promoters and 300 branch offices.

Crédito Real recorded a 22.1% portfolio growth and maintained a sound credit profile, reducing the overdue portfolio index to 1.6% at the end of the year. Having a well-diversified loan portfolio in geographical terms and in product supply has helped us reduce risks and diversify our exposure to any one particular sector of economy.
Today, we are ready to meet the growing demand of loans, both from new and existing clients who look for high-quality products, and this allows us to maintain credit standards that contribute to our portfolio diversification and which also secure high margins with low risk.

Looking to the future, in 2013 we expect to continue our sound growth pace. We are committed to our proven business model and to provide our shareholders with value by means of sustained growth.

We feel optimistic towards 2013. We believe that the business environment is positive and that together with our commitment and our business model, we can continue to grow in a sound and sustainable manner, paying attention to the environment and the communities within which we work. I appreciate our team's dedication, the shareholders' trust and our clients' loyalty. We hope we will have another year of success.

Ángel Romano Berrondo
General Manager