As of the closing of the year 2010, the financial margin of the Group showed a 25.5% increase regarding 2009. This variation resulted from an improvement in the active transaction margin and the training cost reduction, supported by a growth achieved during the year in the low-cost account segment.
The preventive estimation for credit risks was reduced in 12.4% compared to 2009, which is the reflection of a nominal reduction of the total past due loan portfolio in the amount of $89 million pesos, representing a reduction of 15.5%.
The net profits of the Financial Group increased 42.7% during 2010 compared to the previous year, as a result of an efficient management of income and expenses involved in the operation of the Group. Expenses related to the opening of 4 new branches and to a 16.8% increase of staff were reported.
At the end of 2010, shareholder’s equity of the Financial Group reached the amount of $4,116 million pesos, representing a positive variation of 16.9% regarding 2009. The profitability on shareholder’s equity was reported at 17.7% in average.
Funding showed a favorable performance during 2010. The item that reported the highest positive variation was immediate availability deposits with 30.1%, which results in the improvement of the weighted cost of total funding.
The other items that reported significant increases, when compared to the previous year were interbank loans and repurchase agreements operations which reached 10.2% and 19.8%, respectively. Issuance of Negotiable Instruments was increased in 69.8%. This role was widely accepted in the market, besides providing funding at very competitive rates.
The number of customers that received our services shows the degree of trust and acceptance of our products and services, thus, in 2010 160,000 customers were serviced which is 8.1% higher than the number reported the previous year. Besides these customers, there are more than 67,000 individuals whose payroll is paid through our Bank.
Total funding showed a 17.9% increase, this growth was sufficient to reach the amount of $47,086 as of the end of 2010. This variation is good evidence that our customers have accepted our wide range of products and services.
The total loans portfolio increased 15.9%. By keeping a prudent strategy in loan channeling, a reduction loans was reported for loans that might represent higher default risks, such as the 23.8% reduction of consumption loans and 3.9% reduction in mortgage loans.
The types of loans that were increased include loans granted to governmental agencies, which increased in 76.5%. Likewise, small and medium businesses financing was increased in 21.3% through traditional loans, factoring and leasing, consequently, this variation represented $3,067 in nominal terms.
By keeping a constant follow-up in collection activities and of the financial condition of borrowers, the past due loan portfolio was of 2.1%, which is less than the average reported by financial groups. The credit risk coverage is 2.0 times the ordinary, which provides financial stability and it is above the system’s average.