COVID-19 will undoubtedly have a significant negative effect on the world economy in multiple fronts, including
Mexico, primarily due to the unprecedent government-imposed lockdowns across several countries. Although
systemwide NPL ratios and profitability remained at solid levels in recent years, the economic situation has
already begun to deteriorate significantly, which could be reflected in lower lending by financial institutions,
including MEGA. Additionally, despite the recent announcements made by relevant government agencies to grant more
flexibility to both financial institutions and borrowers to cope up with this challenging backdrop, asset quality
and profitability are expected to decline in the coming months.
We are confident that our prudent origination model and healthy financial position grants us a solid position to
face short- and medium-term industry and macroeconomic shocks and opportunities associated with COVID-19, ensuring
the continuity of our operations.