Thanks to comprehensive risk management practices, diligent market analysis and a proactive client-focused
service, during 4Q20, Mega performed under a remarkable operational resilience (effectively weathering the
prolonged effects of the pandemic) while counted on the required momentum to achieve its 2020 Guidance.
In this regard, as of year-end, total loan portfolio reached Ps.11,438 million, up 27.0% YoY (2020 Guidance:
double-digit growth); and net income climbed 46.3% YoY (2020 Guidance: positive growth), posting a new
record-high for this P&L item in our history.
Against this background, one of the main drivers of our performance lies in the close communication and
support provided to our clients (it has been maintained since the beginning of the sanitary contingency), for
the purpose of help them before the current backdrop, to preserve as many business relationships as possible.
Among these efforts, especially outstanding were the pre-approval of credit lines and payroll loans for
high-profile customers, as well as the advisory services rendered on credit settlements for those clients
affected the most by the pandemic. We believe these measures have contributed to the stability of the NPL
ratio that stands at 2.2% (one of the lowest in the industry).
Moving on the most significant developments of 2020, we find: i) the contribution of our broadened business
network, particularly from the Mexico City branch; ii) the partnership with the Coordinating Council of Women
Entrepreneurs (Consejo Coordinador de Mujeres Empresarias, CCME for its Spanish acronym), which allowed
us to arise as one of the best positioned non-bank financial institutions to support women-led SMEs in Mexico;
and, iii) our first Senior Notes issuance in the international markets, for US$350 million (same that we
successfully reopened in March 2021, with an additional placement of US$150 million).
The proceeds obtained from our Senior Notes were instrumental for 2020 origination, as despite the adoption
of tighter credit standards to preserve asset quality, we were able to meet our forecasts, thanks to the addition
of new customers with solid credit scores (mainly in Mexico City) who opted for our value proposal over
Moreover, we continued striving to consolidate our corporate governance, effort that was crystalized last
November, with the Prime Certification (a recognition promoted by the BMV, BIVA, AMIB, Nafin and
Bancomext, for the institutionalization and strengthening of corporate governance in Mexican companies),
where our strong adherence to best practices allowed us to receive this certification in a record time
(1.5 months, vs. 6-12 months of standard participating companies).
The foregoing, together with our deep social and environmental commitment, also contributed to the rank of
Vigeo Eiris (a Moody's subsidiary that evaluates the integration of social, environmental and governance
factors into the strategy, operation, and management of companies) on Mega, placing us among the
top-scoring companies along the non-bank financial institution sector in Mexico and Latin America.
To conclude, in 2021, we will keep boosting our operational platform towards the deployment of
comprehensive initiatives oriented to consolidate our financial position, considering as a key element for this
end, a close collaboration with development banks, as well as a renewed commitment to transparency and
sustainability. All these endeavors aim to contribute with the economic recovery of Mexico, drawing on our
offer of competitive and differentiated financing solutions.
Guillermo Romo Executive Chairman Operadora de Servicios Mega, SA de CV, SOFOM ER