Message from the CEO



2013 was a year of remarkable achievements. During this period we increased our portfolio and our net income more than 50%. We consolidated our leadership in the payroll loans, which is a great milestone that allows us to keep innovating. Our unique distribution model has been supported by more than 80 alliances with strategic partners, with the main goal of reaching our customers with on site presence.

Since our foundation in 1993 Credito Real has focused to the segments of the population that historically have been underserved by other financial institutions, with this experience, we have developed a unique distribution model to get access to these segments. Our business strategy is driven to offer access to innovative financial solutions for our customers. In line with this vision, we have developed a versatile and robust business platform, which has allowed us to serve over two million customers. One of the strengths of our business model consist s in the ability to develop alliances with new distributors, always establishing an adequate incentive system that keeps interest well aligned and that enhances the sustainability of the model for the years to come. Our relationship towards our distributors and strategic partners is on a long term basis and has allowed Credito Real to generate a consistent approach to reach each of our customers.

During 2013 we formalized new alliances, among them we observe those made by Crédito Real for Small Business (SME’s) and Group loans, as well as new agreements with distributors on the Durable Goods and Used cars segments. Furthermore, Credito Real consolidated a leading position in Payroll loans by attaining the benefits of the investment made in Directodo, Publiseg and GEMA, which operate under the brand names Kondinero, Credifiel and Crédito Maestro, respectively, and are three of the leading distributors of payroll loans in Mexico in terms of number of clients and loan origination.

Undoubtedly, our employees have been a key factor in our company’s performance. During 2013, Credito Real received the “Great Place to Work” certificate by the Great Place to Work Institute. We are truly satisfied by this acknowledgment; definitively encourages us to keep a friendly and pleasant work environment, which supports our team development and performance. An initiative that also supports the strength of our sustainable business model, relates to corporate social responsibility (CSR) certification recently received from the Mexican Philanthropy Center (CEMEFI).

Our company’s performance was one of the most outstanding in the industry during 2013; our portfolio’s growth was 54.8%, our net income rose 63.4%, reaching a record amount of 1,003.6 million pesos, our Return on average equity was 24.5%, our nonperforming loan was 1.5%, and finally our capitalization index was 41.8%. As of this date, Credito Real is one of the largest financial institutions in the country, regarding net income produce generated for our shareholders. Credito Real along with our customers, distributors, employees and shareholders, will continue to create a sustainable business model and a world-class company as we keep building the foundations of a profitable enterprise. We are grateful to our customers, our distributors, the determination and commitment of our employees, and ultimately to the trust of our shareholders.

ANGEL ROMANOS BERRONDO
CRÉDITO REAL - CHIEF EXECUTIVE OFFICER