Message from our Chairman

Dear shareholders and employees,

It is a great pleasure for us to present our 2014 Annual and Sustainability Report, which reports Gentera and its companies’ results regarding economic, social and environmental matters.

This year we remained faithful to our commitment to maintain focus on the client, offering more and better financial products and services, which create social, economic and human value to the most number of people in the shortest possible time, as established by our purpose.

In regards to economic matters, 2014 was a year that began with uncertainties: in macroeconomic terms, the country was not growing at the expected rate; there were many changes and expectations before the structural reforms, which we had to understand to recognize their influence in our industry. Notwithstanding, we are extremely satisfied with the achieved results.

• The total credit loan portfolio at December 2014 amounted to PS. 23,951 million compared to PS. 20,706 million in 2013, reaching 2.8 million active clients against 2.7 million the previous year
• The ratio of non-performance loans (CV) for 2014 was 3.28%, against 3.12% the previous year, resulting from strict controls in the credits origination and the reinforcement in employees’ training programs
• Net income amounted to PS. 3,162 million, an increase of 39.2% against 2013
• Our operations in Peru, through Compartamos Financiera, grew 17.9% in loan portfolio terms and 20.2% in number of clients, serving currently over 238 thousand people. Likewise, in Guatemala –Compartamos S.A.– holds over 62 thousand clients, exclusively with Crédito Mujer
• At the end of 2014, Yastás, our banking correspondent administrator, had over 2,000 commissioners approved by the CNBV to conduct financial operations, compared to 754 from the previous year
• Aterna, our insurance broker for the bottom of the pyramid, closed the year with over 12 million sold policies, positioning itself as one of the largest insurance intermediaries in Latin America

2014 was also an accomplishment year regarding technology, since we successfully implemented the SAP platform in all our branches in Mexico in less time than expected and without interrupting the business’ continuity. With this system, we will be capable to manage not only loans, but also savings; besides reducing implementation times for new products the bank’s clients require.

The aforementioned results from the continuity we have conducted in our strategy throughout the last years, which led us from a one-product/one-country to a multi-product/multi-country company, as well the renewal conclusion of our technologic platform and at the same time, seeking new opportunities in the market.

In social responsibility matters and through Fundación Gentera, we achieved outstanding results, focused on education in three aspects: financial education, formal and for the entrepreneur in its business.

• Over 236 thousand people benefited with social responsibility projects, investing over PS. 45 million through the social responsibility fund
• Gentera was ratified as a member of the Sustainable Index of the Mexican Stock Exchange for the fourth year in a row
• Over 13 thousand employees participated in volunteering activities in different communities
• Over 1 million clients form Crédito Mujer were benefited with the Personal Finances Workshop
• We formalized and restructured our value chain aiming to create a sound operating model, able to support current operations and be scalable for future growth
• We gave 2,000 scholarships for entrepreneurs, through Proempleo
• We were recognized with the first place in the Great Place to Work ranking for companies in the finance sector; it is our fifth consecutive year within the top positions
• We obtained the Family Responsible Company Award granted by NCH & Partners; we are the first Mexican company to achieve this certification in Latin and Central America
• In October, 2014, S&P granted Compartamos Banco the global rating of ‘BBB/A-2’ and nationally for Banking of ‘mxAAA/mxA-1+’, which conveys the strength of the Group’s finances, built gradually with conservative policies

In the years to come, we expect to maintain our loan portfolio’s growth. As in previous years, in 2015 we will keep focusing on growth, overseeing assets’ quality, which has been, and will continue being a fundamental element in Gentera’s evolution.

We will continue investing in strategic projects for saving products and in the development and strengthening of our banking correspondent administrator –Yastás–, which will represent the largest investments, since they are the key projects to achieve greater financial inclusion.

To fulfill our purpose and abide by our value offer for the client, we will seek to:

• Capitalize our experience in loans and insurance
• Reinvent our business model
• Improve the delivery model’s efficiency
• Build capacities for inorganic growth, innovation and business intelligence

All these accomplishment would not be possible without the daily work of our almost 19 thousand employees, who we thank their commitment with all clients and Gentera.

Carlos Labarthe Costas Chairman of the Board	Carlos Danel Cendoya Chairman of the Board