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A Financial Group committed to working for Mexico, and consisting of the best human capital, created to watch over and make grow as efficiently as possible our customers’ and partners’ resources.
V ision :
Be leaders in Mexico’s growing financial sector with profitability for our customers, collaborators and partners.
• Commitment to Mexico • Long-term vision • Comprehensive staff development • Integrity • Austerity • Innovation
Key C apacities :
• Operating Efficiency • Customer & Service oriented • Lean structure with good communication and clear leadership • Focused on results • Wise selection of risks
2010 Annual Report
Grupo Financiero Inbursa
Stockholders’ Equity Relevant Figures Economic Environment Grupo Financiero Inbursa Structure of the Board of Directors 03 04 06 07 11
CEOs 11 Curriculum of Directors Banco Inbursa Afore Inbursa Sinca Inbursa Seguros Inbursa and Patrimonial Inbursa Pensiones Inbursa Operadora Inbursa de Sociedades de Inversión Inversora Bursátil Fianzas Guardiana Inbursa Auditing Committee Report Corporate Practices Report Consolidated Financial Statements 12 14 16 17 19 21 22 24 25 26 28 31
Annual Report 2010
(Figueras, Spain, 1904 - 1989)
Perseus. Homage to Benvenuto Cellini
Conceived in 1976 Bronze with brown and green patina Dalí felt attracted to Benvenuto Cellini’s intense life, and as homage to this sculptor he modeled an expressive version of Perseus. The hero slayed Medusa, who had the perverse power of transforming into stone anyone looking in her eyes. The Greek hero bears Hades’ magical helmet, which allowed him to become invisible, as well as Athenea’s bright shield that he used as a mirror, so that Medusa would stare at it for the last time. Perseus took Hermes’ sword and decapitated her.
Grupo Financiero Inbursa
Inmobiliaria Inbursa 956 Afore Inbursa 1,711
Sinca Inbursa 4,210
Promotora Inbursa 2,886
Banco Inbursa 47,427
Pensiones Inbursa 6,042 Patrimonial Inbursa 2,106
Operadora Inbursa 980
Seguros Inbursa 6,302 Salud Inbursa 144
Fianzas Guardiana Inbursa 2,302
Inversora Bursátil 4,869
Annual Report 2010
Grupo Financiero Inbursa
948 263.073 1.866 68.042 2.856 235. -3% -11% 58% 33% -14% -38% 26% 8.973 % chg.356 753 271 14.7 Infrastructure Employees ATMs Branches Sales Force 2009 5.727 5 Stockholders’ Equity Grupo Financiero Inbursa Banco Inbursa Inversora Bursátil Operadora Inbursa Seguros Inbursa Pensiones Inbursa Fianzas Guardiana Million pesos 2009 Million pesos 2010 (´09 vs´10) % chg.427 4. ‘10) % chg.835 20.449 1.869 980 6.055 2010 6.938 971 5. 43% 31% 758.3% 2.0 1.093.528 17.724 2.803 4.235.4% 2.5% 2.629.130 47.068 4. 12% Indicators Capitalization Index (Bank) Past due Portfolio / Total Portfolio (Bank) Reserves / Past due Portfolio (Bank) Investment / Total Policies (Insurance) INBURSA 20. 17.823 2.798 3.484 2010 8.542 Annual Report 2010 .408 5. 17% 23% -29% 6% -6% 10% 26% 225. 10% 10% 24% 1% 17% 12% 23% 61.994 689 198 14.302 6.331 12.725 2.199 43.083.839 43.377 1.005.4 2.0 Market Avg.107 941 347 7.070 Customers Customers 2009 7.523 1.0% 5.984 191.Grupo Financiero Inbursa Assets Grupo Financiero Inbursa Banco Inbursa Inversora Bursátil Operadora Inbursa Seguros Inbursa Pensiones Inbursa Fianzas Guardiana Million pesos 2009 Million pesos 2010 (‘09 vs.009 22.302 Net Result Grupo Financiero Inbursa Banco Inbursa Inversora Bursátil Operadora Inbursa Seguros Inbursa Pensiones Inbursa Fianzas Guardiana Million pesos 2009 Million pesos 2010 (´09 vs´10) % chg.308 931 277 951 582 436 Managed & Custody Assets Managed Assets Custody Assets Million pesos 2009 Million pesos 2010 (´09 vs´10) % chg.129 45.816 588 208 1.077 3.
Report to the Shareholders 6 In 2010. We have ahead significant investment opportunities and needs that are convenient and fully feasible. and a concentration in the demand of long-term government bonds.495 million. there is still uncertainty due to several factors. and the possibility of a higher inflation. which has healthy public finances. a sound financial system with liquidity. Mexico faces significant challenges due to a lower foreign demand. Boosted by investment in physical capital and addressing backlogs in human capital a long-term sustainable growth could be generated. The peso depreciation in 2009. However. but with a healthy financial sector.602 million deficit in 2009. of course. an improvement in the country-risk perception.271 million. companies.726 million was direct investment consisting of USD$ 11. in contrast with the rate reduction policy leading to a 375 basis point cut. In a low-inflation environment. The trade balance showed a USD$3. In this environment. the opportunity for growth and employment is more promising in the economies of the emerging countries. 2009. The negative real interest rate levels helped to alleviate the payments of debt by the world countries. and USD$17. After a 6.783 million in profit reinvestment. a controlled inflation. making also possible a number of investment projects.588 million of accounts among companies. Worth noting is that the flow of these resources was substantial over the year’s last quarter as a result of the inclusion of the Federal Government long-term bonds in the World Government Bond Index (WGBI).759 million to close the year with USD$ 113. the difficult financial situation of several countries and financial institutions. with an appreciation trend over the last months due to a significant capital inflow. The main risks for Latin America are the prices of commodities. if we know how to profit from them. mainly in Asia and Latin America.597 million. could lead us to a high and sustainable growth. Mexico’s economic activity posted a 5. In 2010. between January and July. Mexico’s Central Bank (Banco de México) kept unchanged the reference interest rate. The exchange rate was volatile throughout the year. thus creating more and better jobs.5% growth in 2010.000 million. of which USD$ 23.769 million were in portfolio.355 million in new investment. and low interest rates. USD$2. Economic Environment International reserves grew by USD$22. along with the reactivation of the American economy. such challenge and opportunities represent the strengthening of the domestic sector. such as unemployment. Mexico possesses great advantages that. and the excess valuation of currencies. Grupo Financiero Inbursa . with an amount of foreign investment of USD$ 41. mostly as speculative financial investment. so that in 2010 a flattening of the yield curve was observed due to several factors: a lower inflation. similar to the one posted in 2009.8% to USD$298.361 million.5% fall in 2009. as a result of substantial amounts of external resources. and USD$3. Furthermore. but mainly as a result of a rate differential. and individuals. which increased 29. on March 2010 the flexible credit line was renewed for an amount of up to USD$48. the world’s economic activity showed signs of a slow recovery. and the oil prices boosted exports. including Mexico.121 million deficit compared to a USD$ 4. revenues from family remittances to Mexico amounted to USD$21.
which represented a total amount of $1. Likewise. representing a 5.Grupo Financiero Inbursa Throughout 2010 Grupo Financiero Inbursa (GFI) was very active. In May 2010.A. This figure is positive in comparison to the market average which is 2. for an amount of $2. Worth noting is the increase in profits of Afore Inbursa and Operadora Inbursa with growths of 101% and 33%.1% increase.669 million pesos. This growth allowed Banco Inbursa to close 2010 with $18. mainly due to better results in the banking business and asset management. SINCA sold its stocks of Controladora Vuela Compañía de Aviación. in $1.149 million pesos in such period. In 2010 the Group kept its conservative policy of reserve creation by increasing it by $3.803 million pesos in 2010. To diversify funding composition and terms. Banco Inbursa made three placements of Stock Exchange Certificates for a total amount of $15. Worth noting is Inbursa’s leadership in the loan support to small and medium companies with over 32. and taking advantage of the Mexican market opportunities.030 million pesos.515 million pesos in loan reserves. During 2010 Inbursa strengthened its position in the consumer credit market.211 million pesos loan portfolio. Inbursa ended 2010 with a $176. 7 Marco Antonio Slim Domit Chairman of the Board of Directors Annual Report 2010 . as well as a 31% growth in custody assets. Worth mentioning is that as of the end of 2010 GFI provides services to over 8 million customers.000 borrowers in 2010. This operation increases Inbursa’s presence in this market and allows it to have a solid platform for its future growth in the retail market. Grupo Financiero Inbursa posted net profits for $7. which means a great crossed sales potential which will allow the business to grow. S. de C. over 8 million customers. Under a strict risk selection which has characterized Inbursa’s decision-making since its creation. giving impulse to its development and presence in the Mexican financial market. consolidating at the same time its customer loyalty. committed. or a 10. Grupo Financiero Inbursa paid a dividend of 55 cents per share. The asset management business had a 43% increase to $1. with the acquisition of Chrysler Financial Services Mexico. Inbursa opened 108 new branches in the year for a total of 271.737 million pesos.6 billion pesos.833 million pesos. In July.08 billion pesos. Retail deposits amounted to $51. respectively. With a 45 year experience. particularly in car loans. and a united.4 times past due portfolio hedging.0 times. talented and focused human team we can be sure that Inbursa’s future will keep on being successful in its mission of taking care of and making grow the money of our customers and partners.V.
8 Grupo Financiero Inbursa .
9 Annual Report 2010 .
10 Grupo Financiero Inbursa .
Structure of the Board of Directors Non-independent Directors Regular Alternate Marco Antonio Slim Domit (Chairman) Eduardo Valdés Acra (Vice Chairman) Arturo Elías Ayub Isidro Fainé Casas José Kuri Harfush Juan María Nin Genova Juan Antonio Pérez Simón Leopoldo Rodés Castañé Héctor Slim Seade Tomás Muniesa Arantegui Gonzalo Gortazar Rotaeche Javier Foncerrada Izquierdo 11 Independent Directors Antonio Cosío Pando Laura Diez Barroso Azcárraga Agustín Franco Macías Claudio X. González Laporte Guillermo Gutiérrez Saldivar David Ibarra Muñoz José Pablo Antón Sáenz Padilla Non-member Secretary Guillermo René Caballero Padilla Non-member Pro-secretary CEOs Marco Antonio Slim Domit Eduardo Valdés Acra Javier Foncerrada Izquierdo Rafael Audelo Méndez Date of entrance to GFI 1992 1986 1992 1980 1992 1991 1980 1993 Grupo Financiero Inbursa Inversora Bursátil Banco Inbursa Seguros Inbursa Operadora Inbursa Guillermo Robles Gil Orvañanos Alfredo Ortega Arellano Rafael Audelo Méndez Rafael Mendoza Briones Fianzas Guardiana Inbursa Pensiones Inbursa Afore Inbursa Annual Report 2010 .
DE C.V. DE C. DE C. Chairman of the Board of Directors Dav i d I b a r ra M u ñ oz Independent Advisor J o s é Ku r i H a r f u sh JANEL. Chairman of the Board C l au d i o X . G o n z á l e z L a p o r t e KIMBERLY CLARK DE MÉXICO.A.. S. S.V. President J av i e r Fo nc e r ra d a I z q u i e r d o BANCO INBURSA.A.A.V.B. Vice President J u a n A n t o n i o P é r e z Si m ó n TELÉFONOS DE MÉXICO.CEO Grupo Financiero Inbursa .V. S. Vice Chairman of the Board of Directors INVERSORA BURSÁTIL.V. DE C.V.B. S. CEO G o n z a l o G o r t a z a r Ro t a e c h e CRITERIA CAIXA CORP Director . Chairman of the Board of Directors and CEO A n t o n i o C o sí o Pa n d o COMPAÑÍA INDUSTRIAL DE TEPEJI DEL RÍO.V.A. S. DE C.A. INSTITUCIÓN DE BANCA MÚLTIPLE GRUPO FINANCIERO INBURSA CEO A g u s t í n Fra nc o M ac í a s GRUPO INFRA. DE C.A. DE C. S.B. S.V.A.V.V. DE C. Vice Chairman of the Board Leopoldo Rodés Castañé MEDIA PLANNING GROUP ASEPEYO President CAIXA D’ESTALVIS I PENSIONS DE BARCELONA “LA CAIXA” CRITERIA CAIXACORP HAVAS.A Director H é c t o r S l i m S e a de TELÉFONOS DE MÉXICO. S.B. S.A. CEO L au ra D i e z B a r r o s o de L av i a d a LCA CAPITAL President and CEO A r t u r o E l í a s Ay u b TELÉFONOS DE MÉXICO.A. S.A.A. DE C. Institutional Relations and Strategic Alliances Executive Officer E du a r d o Va l dé s Ac ra GRUPO FINANCIERO INBURSA. CEO I si d r o Fa i né C a s a s CAIXA D´ESTALVIS I PENSIONS DE BARCELONA “LA CAIXA” FUNDACIÓN “LA CAIXA” CRITERIA CAIXACORP. S. CASA DE BOLSA GRUPO FINANCIERO INBURSA CEO G u i l l e r m o G u t i é r r e z S a l d i va r GRUPO IDESA. DE C. S. CEO To má s M u n i e s a A ra n t e g u i CAIXA D´ESTALVIS I PENSIONS DE BARCELONA “LA CAIXA” Assistant CEO J u a n M a r í a N i n G e n ova CAIXA D´ESTALVIS I PENSIONS DE BARCELONA “LA CAIXA” CEO CRITERIA CAIXACORP.V.A.B. S. S. DE C.A. Communications.Curriculum of Directors 12 Marco Antonio Slim Domit GRUPO FINANCIERO INBURSA.A. S.
13 Annual Report 2010 .
respectively. Inbursa strengthens its Preventive reserves were $18.Banco Inbursa 14 Banco Inbursa posted net profits of $4. mainly due to higher commercial loans.308 million pesos in 2010 compared to $4.616 million pesos.366 (Million pesos) 18.7% 147.515 2009 2010 2009 Deposits 2009 Million pesos 2010 Million pesos Deposits 132.8% 35. which had $5498 million pesos in loans and nearly 60.6% 4.5% increase. Chrysler Financial Services Mexico was completed. and equals a hedging of 5.632 companies financed for a total amount of $2. In early June 2010. Furthermore.881 175.0% of the total portfolio. Funding to small and medium companies had an outstanding growth reaching 32. which represents increases of 55% and 39%. the past due portfolio accounted for 2. Worth mentioning is that such portfolio is mostly guaranteed with assets with a current value above the amount of the loans.5% 57.483 10.1% 50.3% Notes with Interest Payable at Maturity (PRVLs) Demand Account Deposits Grupo Financiero Inbursa Bank Loans Cebures (Stock Exchange Certificates) 2010 (Million pesos) . 157. which represents a 20.4 times the past due portfolio. With this acquisition.152 5.515 million pesos. consumer loan market position by extending its car loan customer portfolio and allowing it to have a sound platform for future growth. Banco Inbursa’s loan portfolio registered an 11.149 million pesos. the acquisition of the car financing business.0% 36.816 million pesos in 2009.000 customers.2% increase in the year compared to 2009 to $175.616 Loan Portfolio Reserves 15.
at a 2-year term and a cost of 13 basis points above TIIE. The first one was made in August at a 5-year term and a cost of 24 basis points above the TIIE (Interbank Equilibrium Interest Rate). Banco Inbursa still maintains itself as one of the world’s best reserved and capitalized banks.5% capitalization index.4 2.095 Customers 2009 2010 2009 2010 1. Retail deposits amounted to $51.0 2. Standard & Poor’s rating for each issuing was “mxAAA”. “HR+1”.632 2. 15 Delinquency and Hedging Index 5.0% Hedging Market Avg. with a 3-year term and a cost of 20 basis points above TIIE. with a 20. Market Avg. Both ratings show a stable outlook.545 Million Pesos Annual Report 2010 .1% higher than last year. in addition to a financial sound condition. Likewise. three Stock Exchange Certificate placements were made for a total amount of $15.737 million pesos.669 million pesos. $5. This indicator shows.3% Delinquency Index Small & Medium Companies 32.0 billion pesos each. 7.The total of loan reserves represents 10. The second placement took place in October.149 21.5% of the total loan portfolio. and from HR Ratings. while the last one was placed in December. Inbursa Inbursa 2. Banco Inbursa opened 108 new branches to close the year with a total 271 branches. the capacity to keep on taking part actively and wisely in the loan market.
The market share in the number of members was 8.18% 1. compared to $398 million pesos as of 2009 closing. .487 119.9% reduction in the acquisition cost. The stockholders’ equity was $1.555 1. Inbursa’s Siefores keep low risk levels. which represents a 7% increase. 15% higher than over the same period last year. Managed assets amounted to $119.797 customers. Given a historically low interest-rate scenario. with a 9.267.711 million pesos as of the end of 2010.57% Collection of Fees on Balances Inbursa Grupo Financiero Inbursa Market Avg.410 million pesos in revenues from fees. compared to $1.Afore Inbursa Indicators 16 In 2010 Afore Inbursa posted $1. 116.118 Managed Assets 2009 2010 Million pesos 1.229. Afore Inbursa’s net profits as of the end of 2010 were $801 million pesos.754 Members 2009 2010 1. This result is partially mainly explained by a 72.326.3% in 2010.118 million pesos in 2010 compared to $116.487 million in 2009.597 million as of 2009 closing.1% market share. closing the year with 3. thus avoiding that a rise in rates results in portfolio lower prices.
Infrastructure & Transportation 1.9% 14.994 NOV 2007 2.99% 61 41 58 160 1. Annual Report 2010 DEC 2005 MARCH 2007 DEC 2007 30.A.A.076 762 213 87 58 2. S. 2.3 Enesa. de C. S.196 26.V.A. Financing 4. S.A.5% 55.5% 1. S.V.A.A.2% 3.V. and Subsidiaries 5.3% 0. for a total amount of $1. (61.V. y Subsidiarias 1.1 Salud Interactiva.C. 17 Million pesos 1.3% 2.S.990 shares)* *URVITEC merged with CICSA on November. de C.15% 339 237 576 8.00% 24. S.V.I. 4.00% 30. de C. C. and Subsidiaries 3.5 CELSOL S.V.4 Progenika Total JAN 2008 JUNE 2008 NOV 2010 AUG 2010 50.A. In July.2% 1. de C.V.2 Hilderbrando.Sinca Inbursa In 2010.A. S.4% 5.1% 5. 2007. and Subsidiaries 2.0% 3. S.1 Quality Films.9% 19. S.5% 4.00% 99.1 Infraestructura y Transporte México S.45% 38.030 million pesos. de R. 1.00% 69. de C.209 million pesos at the end of 2010.00% 50.A.2% 3. de C.V. to $4.4% 4.V.V.0% 1. and Subsidiaries 2.1 Aspel Grupo. de C. DE C.2 SOFICAM Total JAN 2006 SEP 2009 49. and Subsidiaries 1.1 Pure Leasing. SINCA sold its shares in Vuela Compañía de Aviación. Total JUNE 2008 APR 2009 64.90% Book Value % 1.0% 2.393 million pesos as of 2009 closing.2% 6. S.3 Giant Motors.4 Grupo Idesa. Total Acquisition Date NOV 2005 SEP 2008 JULY 2008 AUG 2006 DEC 2007 % Shareholding 8. Total TOTAL PROMOTED COMPANIES 6.A de C. Worth mentioning is that the stockholders’ equity went from $3.A. 1.A. de C.34% 269 .A.5% 5. S. de C.V. Other investments 6.2 Grupo Landsteiner.3 Movie Risk.5% 23.015. Sinca Inbursa posted net profits of $882 million pesos.92% 10.00% 9. S. de C.2% 0.V.2 Gas Natural.00% 9.00% 371 286 250 19 926 9.A. de C.00% 127 9 136 3. Health 2.L.V. de C.25% 15.2 Argos Comunicación.3% 7. 5. Entertainment 5.00% 25.V. Software Development 3. S.
18 Grupo Financiero Inbursa .
policies would have increased 7.410 26. Patrimonial Inbursa’s premiums amounted to $1. 2011.142 million pesos. a 10. 2009 to June 30th.408 2009 2010 Million Pesos Annual Report 2010 2009 Stockholders’ Equity 2010 Million Pesos . respectively.001 million pesos in 2009.Seguros y Patrimonial Inbursa In 2010.4% and 9. a 39.7%. compared to last year.6%. Such reduction is mainly explained by PEMEX’s damage coverage for an amount of USD$519 million.273 6.107 million pesos in 2010. Seguros Inbursa’s total policies were $13. compared to $1. If such effect is not considered. 19 Investments 24.2% decline if compared to last year. and a term from February 20th. The car and accident/illness insurance areas showed growths of 29.6% increase.302 5.
5 million.687 6.8% for Patrimonial Inbursa in 2010.532.129 Accrued Withheld Policies 2009 2010 2009 2010 Million Pesos 6.107 million pesos as of FY2009 closing. which represents a 16. The costumer base of both companies grew by 6. was 100. The combined index.487 9. and damage cost related to withheld policies.6% in 2010 to 6. This result is mainly explained by two factors: 1) A higher number of damages due to the earthquake in Mexicali.129. and 74.9% Cars Damages Life Accidents 10. and 2) PEMEX’s damage business.614 Seguros and Patrimonial Customers Grupo Financiero Inbursa . Business Line 14.1% 32. compared to $1. the operating. acquisition. 20 Seguros Inbursa and Patrimonial Inbursa posted profits of $951 million pesos at the end of 2010. and the floods in Mexico’s northern and northeast areas (Alex and Karl hurricanes). that is.0% 27.302 million pesos. The stockholders’ equity was $6.1% for Seguros Inbursa.0% 26.5% increase compared to last year.
081 582 Assets Investments Technical Reserves Stockholders’ Equity 20.377 22.075 6. The stockholders’ equity of Pensiones Inbursa increased to $6. Million Pesos Total Premiums Reserves Technical Profits Result of Investments Net Profits 2009 18 156 (977) 2.229 14. 12.042 21 Annual Report 2010 .052 million pesos in 2010.4% if compared to 2009 closing. This difference is mainly due to an extraordinary gain in 2009 resulting from the valuation in the shares of its subsidiary Promotora Inbursa. from $18. Pensiones Inbursa reported profits of $581 million pesos.697 5.229 million pesos in 2009 to $20. in contrast to $941 million pesos last year.045) 2.052 15.Pensiones Inbursa By 2010’s end.042 million pesos under the National Commission of Insurance and Bonds’ accounting rules.327 941 2010 44 228 (1.725 18.798 20. Investment in the pension business kept growing.
319 million pesos in assets.79% 14.962 17.4% for the period between March 31st. ’10) Annualized Yield Market Avg.02% Grupo Financiero Inbursa .81% 12.220 million pesos and $18. INBUREX and INBUR LP had an annual yield of 6.513 million pesos. $11. with a dividend payment of $268 million pesos.0% 4.632 11.697 15.5% 38. The stockholders’ equity was $980 million pesos. 1981 and December 31st.48% 3. Fund Portfolio Million Pesos Assets in 2009 Million Pesos Assets in 2010 % chg.356 5.842 5.78% 12. DINBURI posted a 3.026 9. the stockholders’ equity would have increased 28.5% 16.78% 12.72% 6. IBUPLUS and FONIBUR funds posted at the end of the year portfolios of $24.4% 91. 2010.319 9. and a $9. (’09 vs.Operadora Inbursa 22 The assets managed by Operadora Inbursa amounted to $80. In 2010.632 million pesos portfolio. As regards the performance of mutual funds in debt instruments.70% 4.5%. If adjusted by this effect.58%.398 18.602 million pesos.68% 20. respectively.220 80. ending FY2010 with $11.684 28.70% 12. INBUMAX had an annual yield of 5. Furthermore. Annualized Yield 3.307 10. Operadora Inbursa reported $277 million pesos in profits compared to $208 million pesos in 2009.398 million pesos in assets and showed a dollar compound annual yield of 20.513 11. which represented a 27% increase compared to the previous fiscal year.05%.78% CPI Annualized Yield DINBUR INBUREX INBUMAX INBURSA FONIBUR IBUPLUS TOTAL Fixed Income Fixed Income Fixed Income Variable Income Variable Income Variable Income 4.2% 3.522 63.58% 5. or 33.684 million pesos as of the closing of FY2010. as of December 31st.72% annual yield and assets for $5.05% 13.6% 17.2% higher. INBURSA’s variable income fund reported.602 24. 2010.
3% Others Annual Report 2010 .7% Operadora Inbursa Inflation BMV 2.602 24. 23 20.Inbursa Fund (Yield in Dollars) Inbursa shows the highest USD compound yield over the last 29 years (March ’81 – Dec ’10).41% 14.220 30.52% 8.56% 69.60% Inbursa Dow Jones Cetes 7.398 18.61% Market Share (Variable Income) VARIABLE INCOME Inbursa Fonibur Ibuplus TOTAL 11.220 54.
in 2010 custody assets amounted to $2.869 million pesos compared to $3.054. Moreover.938 2. as well as higher prices in investments. The stockholders’ equity of Inversora Bursátil showed a 23.186 931 Stockholders’ Equity Custody Assets 3. a 58. Inversora Bursátil (Stock Exchange Investor) reported profits of $931 million pesos.Inversora Bursátil 24 In 2010. This was due to higher revenues from fees resulting from a higher-than-expected volume in the Mexican Stock Exchange during 2010. Million Pesos Collected Fees and Rates Purchasing profits Operating Result Net Profits 2009 674 665 801 588 2010 776 438 1. compared to the previous year.019 4.938 million pesos last year.677.67 billion pesos. in comparison with $588 million pesos as of FY2009 end.079 Grupo Financiero Inbursa .869 2.3% increase.6% increase in 2010. to $4.
127 2. or a 4.727 2. Net profits were $436 million pesos.095 1.866 million pesos. 25 Million Pesos Premiums Reserves Technical Profits Result of Investments Net Profits 2009 919 63 201 220 347 2010 963 71 345 252 436 Total Assets Investments Reserves Stockholders’ Equity 2.8% increase compared to $919 million pesos last year. which was $1. in comparison with $347 million pesos in 2009.Fianzas Guardiana Inbursa As of December 31st.4% increase. 2010 Fianzas Guardiana Inbursa (Bonds) reported premiums of $963 million pesos. if compared to the closing of FY2009.948 1. representing a 23.302 Annual Report 2010 . The stockholders’ equity was $2.427 941 1.302 million pesos.866 3.
30 Grupo Financiero Inbursa .
S. INSTITUCIÓN DE BANCA MÚLTIPLE Consolidated Balance Sheets 100 Consolidated Statements of Income 103 Consolidated Statements of Changes in Shareholders’ Equity 104 Consolidated Statement of Cash Flows 106 SEGUROS INBURSA.V.A. DE C... Balance Sheets 110 Statements of Income 112 OPERADORA INBURSA DE SOCIEDADES DE INVERSIÓN. S.A.A. AND SUBSIDIARIES Consolidated Balance Sheets 34 Consolidated Statements of Income 37 Consolidated Statements of Changes in Shareholders’ Equity 38 Consolidated Statement of Cash Flows 40 Notes to Consolidated Financial Statements 41 BANCO INBURSA. Consolidated Balance Sheets 107 Consolidated Statements of Income 109 PENSIONES INBURSA.A. S.A.B. DE C. CASA DE BOLSA Balance Sheets 115 Statements of Income 116 FIANZAS GUARDIANA INBURSA.Grupo Financiero Inbursa. S. de C. DE C.A. S. S. Balance Sheets 113 Statements of Income 114 INVERSORA BURSÁTIL.V. 2010 and 2009 Contents: Report of Independent Auditors Financial statements: GRUPO FINANCIERO INBURSA. S.A.B.A.V. Balance Sheets 117 Statements of Income 119 33 31 Financial Statements . and Subsidiaries Consolidated Financial Statements Years ended December 31.V. S.
32 Grupo Financiero Inbursa .
S. and the consolidated results of operations and changes in the shareholders’ equity and cash flows for the years then. Our responsibility is to express an opinion on these financial statements based on our audits. S. These financial statements are the responsibility of the Bank’s management.B. and Subsidiaries. 2010 and 2009.A.B. and Subsidiaries (the Group). and the related consolidated statements of income. at December 31. We conducted our audits in accordance with auditing standards generally accepted in Mexico. such criteria are at variance with Mexican Financial Reporting Standards. on a test basis. in all material respects.C. the consolidated financial position of Grupo Financiero Inbursa.V. and Subsidiaries We have audited the accompanying consolidated balance sheets of Grupo Financiero Inbursa. de C. An audit also includes assessing the accounting criteria used and significant estimates made by management.In the instances mentioned in the aforesaid note.V. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and are prepared in conformity with the accounting criteria mentioned in the following paragraph. A Member Practice of Ernst & Young Global Miguel Mosqueda Mexico City. the Group is required to prepare and present its financial statements on the basis of the accounting criteria established by the Mexican National Banking and Securities Commission for controlling entities of financial grouPs. 33 Mancera. in conformity with accounting criteria mentioned in the preceding paragraph. 2010 and 2009.A. changes in shareholders’ equity and cash flows for the years then ended. 2011 Financial Statements .B. as well as evaluating the overall financial statement presentation. As mentioned in Note 2 to the accompanying financial statements. de C. In our opinion.V. S.A. An audit includes examining. the financial statements referred to above present fairly. as of December 31. S. We believe that our audits provide a reasonable basis for our opinion. February 28. evidence supporting the amounts and disclosures in the financial statements. de C.Report of Independent Auditors To the Shareholders of Grupo Financiero Inbursa.
865 57 211 2009 23.385 18.974 8.393 18.470 Ps.846) ( 157.903 27.057 27.216 2. 9.598 1.905 438 106 4.216 .545 2.112 9.526 613 1.211 3.714 9.160 6.920) 144.356 569 6.365 21.221 Ps.687 206 Debit balances under repurchase agreements (Note 8) Derivatives (Note 9) For trading For hedging purposes Valuation adjustment for financial asset hedges (Note 10) Performing loan portfolio Commercial loans Business or commercial activity Financial entities Government entities Consumer loans Mortgage loans Total performing loan portfolio Past-due loan portfolio Commercial loans Business or commercial activity Financial entities Consumer loans Mortgage loans Total past-due loan portfolio Total loan portfolio (Note 11) Preventive provision for credit risks (Note 12) Total loan portfolio (Net) Other accounts receivable (Net) (Note 13) Foreclosed and repossessed property (Net) Property. deferred charges and intangibles (Net) (Note 16) Total assets 5.606 176.195 172. and Subsidiaries Consolidated Balance Sheets As of December 31.625 ( 3.074 15.066 9.091 1.204 20.Grupo Financiero Inbursa. S.727 1.V. de C.856 Ps.005 563 1. furniture and equipment (Net) (Note 14) Long Term equity investments (Note 15) Other assets.426 1. 2010 and 2009 (In millions of Mexican pesos) (Notes 1 and 2) 34 2010 Assets Cash and cash equivalents (Note 5) Margin accounts (Note 6) Investments in securities (Note 7) Securities for trading Securities available for sale Securities held-to-maturity Ps.605 128.925 2. 263. 15.912 1.872 10. 225.449 160.177 325 104 3.984 Grupo Financiero Inbursa .887 124. 19.230 31.123 155.B.A.154 2.132 1.565 6.563 896 26.
283 5.934 15.734 Ps.874 2. 35 2010 Liabilities Traditional deposits (Note 17a) Demand deposits Time deposits (Note 17b) General public Money market Debt securities issued (Note 17 c) Interbank and other borrowings (Note 18) Demand deposits Short-term Long-term 2009 Ps.130 Ps.337 5.201 27.508 221 1.408 3.956 9.068 92 34.393 73.743 1. 48.408 3. 8.120 195.168 55 164.098 30.207 13.098 24.233 76.465 8 8.193 124.541 69.025 849 5.145 Deferred income tax (Net) (Note 22) Deferred credits and early settlements Total liabilities Commitments and contingencies (Note 23) Shareholders’ equity (Note 24): Contributed capital Capital stock Stock premium Earned capital Capital reserves Retained earnings Result from holding non-monetary assets Equity interest in other shareholders’ equity accounts of subsidiaries Net income Minority interest Total shareholders’ equity Total liabilities and shareholders’ equity 2.973 8.803 98 40.491 1.431 61. 225.207 13.595 971) ( 99 ( 14.016 5.960 73.092 Creditors under security repurchase agreements (Note 8) Derivatives (Note 9) For trading For hedging purposes Other accounts payable Taxes on profits payable (Note 19) Creditors on settlement of transactions (Note 5c) Creditor on margin accounts (Note 20) Sundry creditors and other accounts payable (Note 21) 6. 263.669 141.856 8.865 1.915 559 24. 51.984 Financial Statements .201 27.849 29.726 ( 14.318 2.839 Ps.272 4.722 68.575 239 3.539 13.360 971) 216) 7.915 .217 1.552 3.314 9.
Memoranda accounts 2010 Transactions on behalf of others
Customers’ current accounts Customers’ banks Settlement of customers’ transactions Ps. 1 ( ( Customers’ securities Customers’ securities received for safekeeping (Note 30) Securities and notes received in guarantee 159) 158) Ps. 3 ( ( 95) 92)
2009 Proprietary transactions
Proprietary memoranda accounts Contingent assets and liabilities (Note 30) Loan commitments (Note 30) Property held in trust or under mandate (Note 30) Property held for safekeeping or under management (Note 30)
Ps. 52,493 2,816 412,132
Ps. 52,561 1,982 331,423
1,083,823 104 989,632
758,724 59 847,653
Uncollected accrued interest 2,629,070 2,005,073 113 Other memoranda accounts
2,629,070 Transactions on behalf of customers Customers’ repurchase agreements Managed trusts Total transactions on behalf of others 48,683 33 48,716
2,005,186 Security repurchase agreements 66,127 66,127 Total proprietary transactions Collateral securities received (Note 8) Collateral securities received and delivered in guaranty (Note 8)
The Group’s historical capital stock at December 31, 2010 and 2009 is Ps.2,758. The accompanying notes are an integral part of these financial statements. These balance sheets, consolidated with those of the financial and other entities comprising the Group that are subject to consolidation, were prepared in accordance with the accounting criteria for financial group holding companies issued by the National Banking and Securities Commission based on Article 30 of the Law that Regulates Financial Groups, which are of a general and mandatory nature and have been applied on a consistent basis. Accordingly, they reflect the transactions carried out by the Holding Company and the financial and other entities comprising the Group that are subject to consolidation, through the dates noted above. Furthermore, these transactions were carried out and valued in accordance with sound practices and the applicable legal and administrative provisions. These consolidated balance sheets were approved by the Board of Directors.
Grupo Financiero Inbursa
Grupo Financiero Inbursa, S.A.B. de C.V. and Subsidiaries
Consolidated Statements of Income
Years ended December 31, 2010 and 2009 (In millions of Mexican pesos) (Notes 1 and 2)
2010 Interest income Interest expense Financial margin (Note 27) Preventive provision for credit risks (Note 12d) Financial margin adjusted by credit risks Commissions and fees collected (Note 28) Commissions and fees paid Intermediation income (loss) (Note 29) Other operating income Total operating revenues (Note 26) Administrative and promotional expenses Operating income Other income Other expenses Income before tax and equity interest in net income of unconsolidated subsidiaries and associates Income tax (Note 19) Deferred income tax (Note 22) Income before equity interest in net income of unconsolidated subsidiaries and associates Equity interest in net income of unconsolidated subsidiaries and associates (Note 15) Net income Minority interest Net majority income
The accompanying notes are an integral part of these financial statements. These statements of income, consolidated with those of the financial and other entities comprising the Group that are subject to consolidation, were prepared in accordance with the accounting criteria for financial group holding companies issued by the National Banking and Securities Commission based on Article 30 of the Law that Regulates Financial Groups, which are of a general and mandatory nature and have been applied on a consistent basis. Accordingly, they reflect the revenues and costs relating to the transactions carried out by the Holding Company and the financial and other entities comprising the Group that are subject to consolidation, through the dates noted above. Furthermore, these transactions were carried out and valued in accordance with sound practices and the applicable legal and administrative provisions. These consolidated statements of income were approved by the Board of Directors. Lic. Marco Antonio Slim Domit Director General C.P. Raúl Reynal Peña Director de Administración y Finanzas C.P. Federico Loaiza Montaño Director de Auditoría Interna C.P. Alejandro Santillán Estrada Subdirector de Control Interno
2009 18,113 Ps. 9,225 8,888 4,427 4,461 3,580 333 1,899 684 5,830 10,291 3,975 6,316 1,077 95 982 7,298 1,061 738 323 7,451 21,271 11,859 9,412 4,062 5,350 3,556 180 1,689 522 5,587 10,937 3,809 7,128
1,476 212 1,688 5,610 2,239 7,849 46) ( 7,803 Ps.
1,004 905 1,909 5,542 2,549 8,091 23) 8,068
Grupo Financiero Inbursa, S.A.B. de C.V. and Subsidiaries
Consolidated Statements of Changes in Shareholders’ Equity
For the years ended December 31, 2010 and 2009 (In millions of Mexican pesos) (Notes 1, 2 and 24)
Balances at December 31, 2008 Resolutions adopted by shareholders Appropriation of net income of year ended December 31, 2009 to retained earnings Dividend declared as per ordinary shareholders’ meeting held on April 30, 2009 Total Recognition of comprehensive income (Note 25b) Net income Unrealized loss on valuation of instruments available for sale Equity interest in other shareholders’ equity accounts of subsidiaries, net of deferred taxes Total Non-controlling interest Balances at December 31, 2009 Resolutions adopted by shareholders Appropriation of net income of year ended December 31, 2010 to retained earnings Dividend declared as per ordinary shareholders’ meeting held on April 30, 2010 Total Recognition of comprehensive income (Note 25b) Net income Unrealized gain on valuation of instruments available for sale Equity interest in other shareholders’ equity accounts of subsidiaries, net of deferred taxes Total Balances at December 31, 2010
The accompanying notes are an integral part of these financial statements.
Ps. 14,207 Ps. 13,201
Ps. 14,207 Ps. 13,201
The consolidated statement of changers in shareholders’ equity, consolidated with those of the financial and other entities comprising the Group that are subject to consolidation, were prepared in accordance with the accounting criteria for financial group holding companies issued by the National Banking and Securities Commission based on Article 30 of the Law that Regulates Financial Groups, which are of a general and mandatory nature and have been applied on a consistent basis. Accordingly, they reflect the all of the changes in shareholders’ equity accounts by the Holding Company and the financial and other entities comprising the Group that are subject to consolidation, through the dates noted aboce. Furthermore, these transactions were carried out and valued in accordance with sound practices and the applicable legal and administrative provisions. These consolidated statements of changes in shareholders’ equity were approved by the Board of Directors.
Grupo Financiero Inbursa
3.903 1) 61.667) ( 3.833) 6.098 Ps.068 23 ( 8.068 1. 22.360 ( 971) ( 216) 8.668 1.839 8.098 24.595 Ps.604 ( 3.668) ( ( 947 135) 812 8.235 ( 8.667) 1.091 947 135) 8.( 1.068 ( 8.068 ( 23 1) ( 92 3.028) Ps.130 Financial Statements . 54. 70 Ps. 7.667) 2.098 Ps.803 40) 6 Ps.833) 1.( 971) Ps.( 971) Ps.668 Ps.068) ( 1.849 97 178 8. 3.833) ( 8. 39 Earned capital Retained earnings Result from holding nonmonetary assets Equity interest in other shareholders’ equity accounts of subsidiaries Non-controlling interest Total shareholders’ equity Capital reserves Net income Ps. 3.803 46 7. 99 Ps. 68. 30.068) ( 97 218 315 7.001 ( 3.359 Ps. 98 Ps.803 Ps.124 ( 7.668) ( 1.
8.261) 22. de C. The consolidated statement of cash flows.000 2. consolidated with those of the financial and other entities comprising the Group that are subject to consolidation. these transactions were carried out and valued in accordance with sound practices and the applicable legal and administrative provisions.V.563 8. 2010 and 2009 (In millions of Mexican pesos) (Notes 1 and 2) 40 2010 Net income Adjustment of items not affecting cash flow: Preventive provision for credit risks (Note 12) Depreciation and amortization Expense provisions Current year and deferred taxes on profits Equity interest in net income of unconsolidated subsidiaries and associates Operating activities Margin accounts Investments in securities Debtors under security repurchase agreements Derivatives (asset) Loan portfolio Foreclosed and repossessed assets Other operating assets Traditional deposits Interbank and other borrowings Creditors under security repurchase agreements Derivatives (liability) Other operating liabilities Instruments for hedging (items hedged with operating activities) Net cash flow provided by operating activities Investing activities Payments for the acquisition of property.126 22. S.445) 3.625) 837) 3.630 4.865 Grupo Financiero Inbursa .906 2.363 ( 23.171 154 ( 5.667) 90) 1.865 19.638) ( 50 ( 18. were prepared in accordance with the accounting criteria for financial group holding companies issued by the National Banking and Securities Commission based on Article 30 of the Law that Regulates Financial Groups.665) 6.997) 584) 12.860) ( 17.B.427 325 121 1.119) ( 3. they reflect the incoming and outgoing cash relating to the transactions carried out by the Holding Company and the financial and other entities comprising the Group that are subject to consolidation. 2009 Ps.221 $ 373) 416 270) 227) 1.479) 16.A.688 2. furniture and equipment Payments for the acquisition of other long-term equity investments Payments for the acquisition of intangibles Net cash flow provided by investing activities Financing activities Cash dividend paid Non-controlling interest Adjustments to cash flows due to exchange rate and inflation rate fluctuations Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year The accompanying notes are an integral part of these financial statements.909 2. Furthermore.091 ( ( ( ( ( ( ( ( 4. The consolidated statement of cash flows was approved by the Board of Directors.581 ( 2.660) ( 6.126 15.228) ( ( ( ( ( ( ( $ 82) ( 55) 139) ( 276) ( 1.862) ( 3.951 200) 21. and Subsidiaries Consolidated Statement of Cash Flows For the years ended December 31.677) ( 4.356 ( 15.966) 16. 7.833) ( 29) ( 1.872 ( 3.549) 11.239) ( 12. Accordingly.Grupo Financiero Inbursa.655 12. which are of a general and mandatory nature and have been applied on a consistent basis. through the dates noted above.849 Ps.139) 18.779) 7.062 298 140 1.757) 6.
except for Movie Risk. in conformity with the Mexican Retirement Savings System Act. who have the authority to modify the Group’s financial statements. S. the general rules for the incorporation and functioning of financial groups.V. S. The Group is subject to the money laundering prevention regulations issued by the Ministry of Finance and Public Credit (SHCP). Companies regulated by the CNBV • Banco Inbursa. • Sociedad Financiera Inbursa. S.V. de C. de C. as well as in managing its investment fund portfolio.V.V. the accompanying financial statements include the consolidated financial information. except for foreign currency and exchange rates) 41 1. In conformity with the requirements of the CNBV applicable to controlling entities of financial groups. de C. Banco Inbursa holds a majority equity interest in the following entities: Financial Statements . Such shares must represent at least 51% of the paid-in capital of each company. de C.A. 2011. protection and surveillance policies.A. SOFOM ER. S. de C. S.99% of its outstanding shares. Afore Inbursa. de C. Is a regulated financial institution of multiple objet that operates under the regulations established by the CNBV. This company is engaged primarily in providing administrative and stock distribution and repurchasing services. the SHCP and Banxico. standards and procedures. de C.V. 2010 and 2009 (In millions of Mexican pesos. S. thus contributing to Mexico’s social and economic growth.. a company over which the Group exercises control. This Bank is regulated by the Mexican National Retirement Savings System Commission (CONSAR).Grupo Financiero Inbursa.B.V. 2010 and 2009. such companies are not subject to consolidation. In conformity with the Mexican Law Regulating Financial Groups. Sinca Inbursa.A. S.B.A. Therefore. the right to demand those modifications and corrections that it considers necessary prior to their publication.: This entity is engaged in receiving retirement savings funds. At December 31.A. Seguridad Inbursa. as well as the rules issued by the Commission and Banxico.V. and Subsidiaries Notes to Consolidated Financial Statements December 31. This entity is regulated by the CNBV.V.A. A description of the activities performed by the companies in which the Group is the majority shareholder is as follows: I.A. since it holds 99. Sociedad de Inversión de Capitales (Sinca Inbursa): Is engaged in investing in shares and securities issued by Mexican stock corporations which require long-term financing and whose activities are closely linked to the goals of Mexico’s national development plan. Is a multiple-type banking institution engaged in providing banking and credit services and acting as a trust company.V. Conducts its transactions in conformity with the Mexican Investment Funds Act. This company is engaged primarily in leasing all types of property under financial and operating agreements. as well as the general dispositions of the Mexican National Banking and Securities Commission (the CNBV or the Commission). On February 28. S. (the Group) conducts its transactions in conformity with the regulations established in the Mexican Law Regulating Financial Groups. de C.A.A.. S. When reviewing the financial statements of controlling entities of financial groups. These financial statements were approved by the Board of Directors on January 24. de C. Description of the business and relevant events Grupo Financiero Inbursa. • Operadora Inbursa de Sociedades de Inversión. de C. the Mexican Corporations Act and the general regulations established by the Commission.: Is a real estate company authorized and supervised by the CNBV.A.: Supplementary services company engaged in providing consulting services and developing security. 2011. Sinca Inbursa does not exercise control over promoted companies. S. the Group is liable alternatively and unconditionally for the liabilities and losses of its subsidiaries. the CNBV has. within its inspection and oversight powers. • Inversora Bursátil. this entity has not started up operations and the balance of its net assets is immaterial with respect to the Group’s consolidated financial statements taken as a whole. in conformity with the requirements of the Mexican Credit Institutions Act. the accompanying consolidated financial statements and these notes were authorized by the undersigned officers for their issuance and subsequent approval by the Board of Directors and Shareholders. The Group is currently authorized by the Mexican Central Bank (Banxico) to engage in transactions with derivatives.A. Inmobiliaria Inbursa. The Group is engaged primarily in acquiring and managing the voting shares issued by its subsidiaries. This entity acts primarily as an intermediary in the trading of securities and currencies in terms of the Mexican Securities Trading Act and the general dispositions established by the Commission..V. S.
when the credit institutions repurchase. accounting. Relevant events Loan portfolio acquisition – Chrysler Financial Services México. These new methodologies establish the use of formulas for quantifying the expected loss on these types of loans. the assets and liabilities of those companies over which the Group exercises significant control must be consolidated. iv) Under Commission criteria. Under Mexican FRS. valuation. ii) The Commission accounting criteria establishes the offsetting of the accounts receivable and payable that derive from security repurchase agreements. around the same date. the accounting criteria established by the Commission are at variance with Mexican FRS.A. Mexican FRS establish that credit institutions must determine whether the commissions the collect represent adjustments to the returns on loans granted and.V.V.Preparation of financial statements • Out Sourcing Inburnet. S. presentation and disclosure of the financial information. This company is also authorized to engage in reinsurance. de C. The Group paid Ps. At the date of the accompanying financial statements. • Pensiones Inbursa. Companies providing supplementary services Preventive provisions for credit risks . At the date of issuance of these financial statements (February 28.On October 25.A. which are in conformity with the Mexican Financial Reporting Standards (hereinafter Mexican FRS) issued and adopted by the Mexican Financial Information Standards Research and Development Board (Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera.A. fees or upon opening a line of credit against which no funds have been drawn down. Based on the transitory provisions. the Group was affected by the following relevant events: Grupo Financiero Inbursa . This company is also liable for the payment of claims arising under bonds extended. the effects of these new rules must be adopted as of March 1. . group and collective life. The financial statements of the Group are prepared on the basis of the accounting criteria established by the Commission. Provides promotional services for the sale of financial products offered exclusively by companies in the Group.392 for the creditor’s rights acquired. Summary of significant accounting policies and practices .4. information technology and management services exclusively to its affiliated companies.498. public or private.C. if so.Relevant events During the year ended December 31. • Asesoría Especializada Inburnet.A. automobile. de C. sell directly or pledge in guarantee any collateral securities they receive as a buyer. crop. as determined by the Commission. S.V. iii) The Commission accounting criteria establishes the deferred recognition of commissions collected on loan transactions when they are collected at the time financing is granted. S. the Group is in the process of allocating the purchase prices of said transaction. de C. for a fee. S. III. However.A. whereby the Bank acquired Chrysler Financial’s total retail. or CINIF).V. administrative. wholesale and capital loan portfolio whose total value was Ps. Is engaged in life insurance activities that involve exclusively the handling of pension insurance derived from social security legislation. the incremental costs associated with the granting of loans must be recognized on a deferred At December 2. Among these changes are new methodologies for computing preventive provisions for credit risks for non-revolving consumer loans and mortgages. This company is authorized to guarantee. A. Is engaged in providing professional. Companies regulated by the Mexican National Insurance and Bonding Commission (CNSF) 42 • Seguros Inbursa. sundry. coinsurance and counter-insurance business. to recognize the as deferred revenues in the income statement. the Mexican National Banking and Securities Commission (the Commission) published changes to the general provisions applicable to credit institutions. the fulfillment of contracted financial obligations of individuals or corporate entities to other individuals or corporate entities. In certain instances. • Fianzas Guardiana Inbursa. Also. which are not consolidated despite the fact that the Group controls them. it acquired Chrysler Financial. 2. the Group entered into a transfer of collection rights agreement with Chrysler Financial Services México. de C. these items cannot be offset unless they are with the same counterparty. S. Such criteria include specific rules with respect to the recording. maritime and transportation. 2010. 2010. Is engaged in selling fire. individual. annual credit card. This company is also authorized to engage in reinsurance and rebonding business. CNBV accounting criteria establish exceptions to this rule for companies in the insurance and bonding sector. (Chrysler Financial). 2011). management is in the process of determining the amount of the preventive provisions that the Group will have to recognize under the aforementioned provisions. The main differences applicable to the Group are as follows: i) Under Mexican FRS. civil and professional liability.5.II. accident and health insurance. 2011. S.A. S. 2010.A.
among others (both proprietary and on customer’s behalf). beginning January 1. as so defined under Mexican FRS B-10. viii) Commission accounting criteria require provisions for bad debts and impairment to be created for certain accounts receivable and foreclosed and repossessed property. ix) Commission accounting criteria require that capital risk investments be recognized in the caption Long-term equity investments and that they be valued using the equity method. vii) The CNBV accounting criteria establish the following considerations to recognize lease agreements as capital leases in addition to those established by Mexican FRS. e) Recording of transactions Transactions related to investments in securities. v) Under Commission accounting criteria. only non-monetary items that are from years prior to 2007 and are included in the balance sheets at December 31. The condensed financial information of the Group’s principal subsidiaries is presented in Note 3. the Group operated in a non-inflationary economic environment. Consequently. these investments are treated as financial instruments (investments in securities) and are valued at their fair value. repurchase agreements and security loans. the accounting records of certain captions of the accompanying financial statements show balances of less than one million and. Under Mexican FRS. therefore. As a result. 2010 and 2009. d) Recognition of the effects of inflation on financial information For 2010 and 2009. Mexican FRS establishes the deferral of such incremental costs separately from the revenue. transaction costs incurred in carrying out transactions with derivative financial instruments must be recognized directly in results of operations as they are incurred. contributed or initially recognized through December 31. Consequently. b) Basis of preparation of financial statements 43 CNBV regulations require that amounts shown in the consolidated financial statements of financial groups be expressed in millions of Mexican pesos. intangible assets. c) Use of estimates The preparation of the consolidated financial statements requires management to make certain estimates to determine the value of certain assets and liabilities. x) Commission accounting criteria establish specific rules for the grouping and presentation of financial statements. As specified by the CNBV. f) Valuation of financial instruments The consolidated financial statements include assets. but any losses related to the cancellation must be covered by the lessee. rates and other market information provided by a CNBVauthorized price supplier. recognize the effects of inflation from the date they were acquired. the Group ceased to recognize the effects of inflation on its financial information. Such non-monetary items include fixed assets. and specific provision percentages must be established. except for futures transactions. which are valued using market prices determined by the clearinghouse of the respective stock market in which the Group operates. are recorded at the time agreements are entered into. i) the lessee may cancel the agreement. Mexican FRS do not allow for these types of hedges. these balances are not included in the captions at all. these provisions are computed based on the probability of recovering the assets. vi) Commission accounting criteria allow hedging relationships to be established for assets and liabilities that are valued at fair value for purposes of results of operations. liabilities and result of operations of the subsidiaries in which the Group holds equity interest in excess of 50% of the investee’s capital stock. and iii) the lessee has the option to renew the lease agreement for an additional period with a rent substantially lower than market value.basis when there are commissions collected related to such loans that are subject to deferral. since the cumulative inflation rate over the three prior years did not exceed 26%. The most important accounting policies and practices observed by the Group in the preparation of these consolidated financial statements are described below: a) Consolidation of the financial statements transactions conducted with unconsolidated subsidiaries have not been eliminated. In determining the fair value of both proprietary and customer positions in derivative financial instruments. 2007. g) Foreign currency balances and transactions Foreign currency denominated assets and liabilities are recorded at the prevailing exchange rate on the day of the related transaction and are translated using the exchange rate of the date of the financial Financial Statements . capital reserves and retained earnings. the Group uses the prices. Under Mexican FRS. Actual amounts could differ from these estimates. irrespective of the settlement date. These provisions must be created based on the age of the items. capital stock. Important intercompany balances and transactions have been eliminated in the consolidation. except for those carried out between companies in the insurance and bonding sector regulated by the CNSF. Mexican FRS require that such costs be amortized based on the terms of the related derivative agreements. ii) gains or losses derived from fluctuations in residual value must be attributed to the lessee. 2008.
and Demand deposits in the case of loans received.Securities held to maturity Transactions involving the buying and selling of foreign currency are recorded at the contracted price. Such investments are stated at acquisition cost plus unpaid accrued interest at the balance sheet date.Securities trading Investments in securities include debt instruments and shares. At the maturity date or at the time the instruments are sold. Exchange differences are charged or credited to the statement of income under the caption Financial margin and Intermediation income (loss). . These investments are initially recorded at cost. Gains or losses on the trading of foreign currency are recognized in results of operations as part of the caption Intermediation income (loss). These investments are recorded at cost. which are recognized in the statement of income as part of the caption Interest income. the effects of their mark-to-market valuation are not recognized for financial reporting purposes. the Grupo Financiero Inbursa . Since these investments are recorded at their nominal value (amortized cost method). against the corresponding clearing account. similar to fair value. Such securities are valued at fair value and the related gain or loss is credited or charged to the comprehensive income in the shareholders’ equity. based on the nature of the initial transaction. as follows: . valued and presented in the financial statements. . plus returns determined using the straight-line method. 44 statements. plus returns determined using the real interest or straight-line method. Earned or accrued interest is charged to income under the caption Financial margin.Buying and selling of foreign currency These refer to cash surplus investments that are not intended for trading or to be held-to-maturity. the traded currency is recorded as a restricted liquid asset (in the case of purchases) and a liquid asset disbursement (in the case of sales). For those items transferred to the other accounts receivable caption. Documents for immediate guaranteed collection are recognized as part of Other cash equivalents if they are collectible within two (in Mexico) or five (abroad) business days after the date of the transaction that gave rise to them. an allowance for the total debt is created within 15 business days after the transfer.Securities available for sale For unsettled securities trading. as published by Banxico on the immediately following bank-working day. are included as part of the captions Cash and cash equivalents in the case of financing extended. When such indicators do exist. which are credited to income as part of the caption Interest income. With respect to transactions involving the buying and selling of securities and foreign currencies that are not paid for immediately in cash or where settlement is not on a same-day basis. . the related amount receivable or payable is recorded in Mexican pesos in clearing accounts. Securities for trading are valued at fair value and the related gain or loss is credited or charged to operations under the caption Intermediation income (loss). they are transferred to the Loan portfolio or Other accounts receivable caption. using the accrual method. They are initially recorded at cost. Call money financing extended or acquired in the interbank market and whose repayment period may not exceed three bank-working days. and can be offset only if and when the Group has the contractual right to do so and intends to settle the net amount. which is determined using the real interest or straight-line method. Debit These are investments in debt instruments indented to be held holding them to maturity. plus returns in the case of debt instruments. based on the nature of the item that gave rise to them. They are classified based on management’s intentions with regard to each investment at the time of purchase. When debit balances in clearing accounts are not recovered within 90 days subsequent to the trade date. the related amount receivable or payable is recorded in the corresponding clearing account at the agreed on price at the time at the trade. they are reclassified as outstanding debt under the caption Other accounts receivable and the Group creates an allowance for the entire balance. as the case may be. or to simultaneously realize the asset and settle the liability. the difference between the selling price and carrying value is recognized in results of operations and the fair value adjustment of the instruments reflected in shareholders’ equity is cancelled. The difference between the price of the securities and the agreed on price is recognized in results of operations as part of the caption Intermediation income (loss). Management periodically determines whether there are any indicators of impairment in the value of its securities investments classified as held to maturity. h) Cash and cash equivalents and credit balances in clearing accounts are included as part of the caption Other accounts receivable and Settlement of transactions. and is credited to income as part of the caption Interest income.Securities for trading These instruments are acquired for the purpose of obtaining gains from their returns and/or the changes in their market prices. When these documents are not recovered within such terms. i) Unsettled transactions . until the respective payment is made. j) Investments in securities Cash and cash equivalents consist basically of bank deposits and highly liquid investments with maturities of less than 90 days. Each classification includes specific rules with respect to the way the investment is recorded. When it is agreed that settlement shall be within a maximum of two bank-working days from the trade date.
investments are tested to determine the present value of their recoverable cash flows and their book value is adjusted accordingly. The Group also performs impairment tests based on the market prices of securities held to maturity. In conformity with the CNBV accounting criteria, a debt instrument cannot be classified as held-to-maturity if the Group, based on its experience during the current year or the two immediately preceding years, has sold or transferred a securities recognized in this category prior to their maturity, except for the following situations: i) when the security has been sold within 28 days prior to maturity or to the date of the issuer’s repurchase option; and ii) when at the time of sale, more than 85% of the instrument’s nominal yield has accrued. In 2010 and 2009, the Group sold no instruments classified as to be held to maturity.
- Offsetting financial assets and liabilities
Whenever the Group sells or pledges in guaranty any collateral securities received as a buyer, the account payable recognized is offset against the account receivable initially recorded when the Group acted as a buyer and the net debit or credit balance is presented as part of the caption Debtors under security repurchase agreements or Collateral securities sold or received in guaranty, as the case may be.
Derivatives are recognized in the balance sheet at fair value, regardless of whether they are classified as for trading or hedging purposes. Cash flows received or delivered to adjust the derivatives to their fair value at the inception of the hedge (excluding premiums on options) are recognized as part of the fair value of the instrument. Transaction costs are recognized in results of operations as they are incurred. The notional amounts of the derivatives are also recognized in memoranda accounts under the caption Other memoranda accounts. Highlights of the accounting treatment of the Group’s agreements involving financial instruments (derivatives) are as follows:
Stock dividends received are recorded recognizing the increase or decrease in the number of shares held and, at the same time, the average unit purchase cost of the shares. This is the same as assigning a zero value to the dividend. Cash dividends received are recorded in results of operations as part of the caption Other operating income.
k) Repurchase agreements
In security repurchase agreements, the Group is required to recognize an account receivable (as buyer) or an account payable (as seller), at the agreed price. Such amounts must then be valued using the amortized-cost method during the effective term of the agreement. The total amount of premiums earned and paid is recognized under the captions Interest income and Interest expense, respectively. Collateral securities received by the Group, as a buyer, are recognized in memoranda accounts under the caption Collateral securities received by the entity. Such amounts are valued at their fair value. Whenever the Group sells or grants in guaranty (in security repurchase and/or loan agreements) any collateral securities received as a buyer, an account payable is recognized, which may be valued either at fair value in the case of security repurchasing or using the amortized-cost method in the case of loan agreements, respectively. In this instance, the difference between the value of the account payable and the amount of cash received is recognized in results of operations as part of the caption Intermediation income (loss). Securities sold or delivered in guaranty are recognized in Memoranda accounts under the caption Collateral securities received and sold or delivered in guaranty by the entity. These amounts are valued at fair value. Collateral securities delivered by the Group as a seller, are reclassified as restricted securities in the Investments in securities category in which they are recognized.
For forwards, an asset portion and a liability portion are recognized at the initially contracted price multiplied by the notional amount. The net balance (position) is presented in the balance sheet as part of the caption Derivatives. For forwards for trading, the valuation effect resulting from the difference between the contracted price and the fair value of contractual obligations is recognized in the statements of income under the caption Intermediation income (loss). At December 31, 2010 and 2009, the Group has no forwards for hedging purposes.
For futures for trading, an asset portion and a liability portion are recorded at the initially contracted price multiplied by the notional amount. Collateral (margin calls) is presented in the balance sheet as part of the caption Margin accounts. The net exchange differences in the market prices of futures contracts are recognized in the balance sheet as part of the caption Derivatives and charged or credited against results of operations under the caption Intermediation income (loss). At December 31, 2010 and 2009, the Group has no futures for hedging purposes.
procedures implemented by the Group are described in Note 32.
- Derivative financial instruments for hedging purposes
Swaps are recorded at the initially contracted price. The valuation of such transactions is made at fair value, which corresponds to the current value of future flows expected to be received and delivered, and projected in accordance with applicable future implicit rates discounted from prevailing market interest rates at the date of valuation. Changes in the fair value of swaps for trading are recognized in the statement of income as part of the caption Intermediation income (loss). The effects of valuation of swaps for hedging purposes are recognized in the statement of income, if the hedging strategy is based on fair value or in shareholders’ equity if the hedging strategy is based on cash flows. Interest generated on these instruments is recognized as part of Financial margin and includes exchange differences. For presentation purposes, the net credit or debit balance (position) of anticipated future cash flows to be received and to be delivered is presented in the balance sheet as part of the caption Derivatives, based on their classification as either for trading or hedging. At December 31, 2010, the Bank has entered into swaps agreement for trading. At December 31, 2009, the Bank has entered into swaps agreement for trading and fair value hedging purposes.
- Structured transactions
Until December 31, 2009, the Bank has the following derivative financial instruments acquired for hedging purposes:
Fair value hedges
These instruments hedge the exposure to changes in the fair value of a recognized asset or liability or unrecognized firm commitments, or an identified portion of such assets, liabilities or unrecognized firm commitments attributable to a particular risk and which may affect the Group’s results of operations. The Group has contracted fair value hedges for market risks related to assets. Changes in the fair value of instruments for hedging purposes are recognized in the same income statement caption in which the hedged positions and the fair value attributable to the risk being hedged are recorded. Changes in the fair value of hedged positions are also recognized on the balance sheet as part of the caption Valuation adjustment for financial asset hedges. The effectiveness of the Group’s hedges is evaluated monthly. Whenever it is determined that a derivative is no longer a highly effective hedge, the Group prospectively ceases to apply hedge accounting to the derivative. The derivative is reclassified to the trading position or dissolved. As of January 1, 2010, the Bank reversed the recognition of hedges at the fair value of their primary position and thus, in 2010 the Bank began to amortize the revaluation effect accumulated through such date attributable to the risk being hedged over the term of the loan portfolio.
In these transactions there is a host contract that references nonderivative assets or liabilities and a derivative portion represented by one or more derivatives. Derivative portions of structured transactions do not constitute embedded derivatives, but rather, independent derivatives. Non-derivatives assets or liabilities are recognized and valued based on their nature (debt securities or loans), while derivative portions are recognized at fair value based on their economic substance (swaps or options). Options are contracts under which the acquirer has the right, but not the obligation, to purchase or sell a financial or underlying asset at a determined price called the exercise price, at an established date or time.
- Credit derivatives
Since the Group’s functional currency is the Mexican peso, operating leases denominated in foreign currency (mainly U.S. dollars) give rise to embedded derivatives, which are measured and recognized at fair value, applying the forward exchange rates to projected cash flows. Embedded derivatives are recognized in the balance sheet together with the host agreement as part of the loan portfolio. Changes in the fair value of derivatives are recognized in the statements of income as part of the caption financial margin.
m) Loan portfolio Accounting recognition
Credit derivatives, in which the parties agree to exchange cash flows, are valued based on the fair value of the rights to be received and the cash flows to be delivered in each instrument. Credit derivatives whose primary contracts are options, are valued based on the fair value of the option’s premium or premiums. These financial instruments are valued at fair value. Investments in securities classified as credit linked notes contain an embedded credit derivative component that is valued at fair value. At December 31, 2010 and 2009, the Group has no credit derivatives for hedging purposes. The main comprehensive risk management practices, policies and
- Loan portfolio recording
Lines of credit granted to customers are controlled in Memoranda accounts as part of the caption Loan commitments, at the time they are authorized by the Group’s Loan Committee. Drawdowns made by borrowers on the authorized lines of credit are recorded as assets
Grupo Financiero Inbursa
(loan granted) at the time the related funds are transferred. Commissions collected on the opening of lines of credit on which no drawdowns have currently been made are recognized in results of operations on a deferred basis over a term of twelve months. At the time drawdowns are made on the lines of credit, the deferred surplus is recognized directly in results on operations. With respect to the discounting of notes, with or without recourse, the Group records the total amount of notes received under the loan portfolio, crediting the related cash disbursement, as agreed upon in the related agreement. Any difference between these amounts is then recorded in the balance sheet under the caption Deferred credits and advance collections as interest collected in advance, and is amortized using the straight-line method over the term of the loan. Letters of credit are recorded in memoranda accounts as part of the caption Loan commitments and after being exercised by the customer or its counterparty, they are transferred to the loan portfolio, while the unsettled cash is applied to the caption Accrued liabilities and other accounts payable. For revolving consumer loans provided through credit cards, the loan portfolio is computed based on the amount of purchases from merchants and ATM withdrawals. Interest is charged based on the average monthly balance of the line of credit through the invoicing or cut-off date. Consumer loans other than those provided through credit cards and mortgages loans are recognized at the time the financing is granted and guarantees received by the Group are documented before making the cash available. Interest is accrued on unpaid balances. Interest on performing loans is credited to income as it accrues, irrespective of the settlement date. The recognition of interest is suspended at the time the loan is transferred to the past-due portfolio. Ordinary uncollected interest included in the past-due portfolio is not considered in grading the credit risk since such interest is reserved in full. Commissions collected on the initial granting of loans are recorded in results of operations over the term of the loan. Commissions on the revolving credit card annual fee are being amortized in the statement of income over a twelve-month term. Incremental costs incurred in the granting of loans are being amortized in the statement of income, based on the terms in which commissions collected on the assets are amortized.
Classification of leases
definitions established in Mexican FRS D-5, Leases. When the risks and benefits inherent to the ownership of the leased asset remain mostly with the lessor, they are classified as operating leases; otherwise, they are recognized as operating leases. There is a transfer of risks and benefits if at the date on which the lease commenced any of the following conditions are met: • • • • • • • The agreement transfers ownership of the leased good to the lessee for the term of the lease. The contract includes a purchase option at a reduced price. The lease period is fundamentally equal to the remaining useful live of the leased asset. The current value of the minimum rental payments is fundamentally equal to the market value of the leased asset, net of any benefit or scrap value. The lessee can cancel the lease agreement and any loss derived from the cancellation will be covered by the lessee. Gains or losses derived from changes in residual value are recognized by the lessee. The lessee has the option to renew the lease agreement for a second period for rent that is substantially lower than market value.
The aforementioned conditions are subject to the following specifications: • • • The lease period is considered fundamentally equal to the remaining useful live of the leased asset when the lease agreement covers at least 75% of its useful life. The current value of the minimum rental payments is fundamentally equal to the market value of the leased asset if it represents at least 90% of said market value. Minimum rental payments consist of those payments that the lessee is required to make for the leased property and that must be guaranteed by a third party not related to the Group. Such payments consist of the residual value or rent payments that go beyond the term of the lease agreement.
The classification of leases based on the policies described above gives rise to differences with respect to their legal classification and their classification for tax purposes. Such differences are reflected in the recognition of preventive provisions for credit risks and deferred taxes. Capital leases are recorded as direct financing, considering the total amount of rents agreed on under the related contracts as a loan portfolio. Financial income on these transactions is equal to the difference between the value of rents and the cost of leased assets and is recorded in results of operations as it accrues. The purchase option agreed on under capital leases is recognized as income on the date of collection or as amortized income during the remaining term of the lease from the time the lessee agrees to take such option. For presentation purposes, the balance of the portfolio corresponds to the outstanding balance of the loan granted, plus accrued interest not yet collected.
The Group classifies its asset lease agreements as either operating or capital leases, as established under the CNBV accounting criteria, and applies on a supplementary basis certain provisions and
The transfer of loans to the past-due portfolio is as follows: • • When the Group learns that the borrower has declared bankruptcy in terms of the Mexican Bankruptcy Act or When the borrower fails to make payments within the originally stipulated terms. o If principal and interest are due and payable in installments. though in the case of installments that cover periods in excess of 60 days. n) Preventive provision for credit risks The preventive provision for credit risks is created based on the grading rules established by the Commission. as the rental revenues from the respective agreements are recognized. based on the conditions agreed on in the related contract. accrued interest is controlled in Memoranda accounts. respectively. or when the loan is repaid at any time using additional financing obtained from the Group by either the original debtor or any other person that because of common economic links with the debtor. policies and procedures implemented by the Group are described in Note 32. 2010 and 2009. . including home mortgage loans. the aggregate amount of principal and interest is transferred to the past-due portfolio. interest income is recognized as it accrues and the previously recognized deferred loan (financial burden) is cancelled. the methodology requires an assessment of the debtor’s creditworthiness and loans received in relation to the value of guarantees or the value of property held in trust or in so-called structured transactions. As long as the transaction is recognized in the overdue portfolio. these differences are considered as either a premium paid or a benefit generated on the transaction. they are recorded as deferred charges or credits. if applicable. For commercial loans. 48 Over the term of the agreements. For the years ended December 31. When contractual terms and market conditions result in differences between the price paid for the loans and their actual contractual value. Any restructured loans classified as overdue are transferred to and remain in the performing loan portfolio when there is evidence of sustained payment. the Group ceases to recognize interest. Costs and expenses incurred in the execution of the lease are recognized as deferred charges. The Group ceases to recognize accrued rent after these overdue payments. terms or currency. overdue loans are reverted back to the performing loan portfolio when the borrower has made at least one payment. In general terms. as well as changes in the Grupo Financiero Inbursa . is 60 days or more overdue. . and they are amortized using the straight-line method over the term of the loan. As a result. and o If the loan is revolving and is two months past due or. if applicable. the Group acquired no impaired or overdue loans. In the case of operating leases.Purchase of loans When payments of commercial loans or accrued interest are not made at the time they are due. and the loan is 90 days or more overdue. the Group records all of the collection rights acquired as loan portfolio against the related cash outflows. premiums are deducted at the time they are paid and benefits are considered taxable at the time the loan gives rise to a real increase in the Group’s shareholders’ equity. constitutes a common risk. For loans considered overdue. interest rates. which are amortized in results of operations. Restructured loans recorded in the performing loan portfolio are transferred to the overdue portfolio when they do not meet the maturity terms.Loan restructurings and rollovers With respect to the purchase of unimpaired loans. commercial loans are usually classified based on the following: Loan restructurings consist of extensions made to the guarantees covering drawdowns made borrowers. For tax reporting purposes. as part of the financial margin caption. Rent agreed on under operating leases is recognized using the accrual method. If the borrower fails to repay on time any accrued interest and 25% of the original amount of the loan. Overdue loans are transferred back to the performing loan portfolio only when there is evidence of sustained payment of both principal and interest of at least three consecutive installments. . o If principal repayable in one single installment and interest is payable in installments and the loan is 90 days or more overdue in interest payments or 30 days or more overdue in repayment of principal. as follows: o If the loan is repayable in one single payment of principal and interest and is 30 days or more overdue. The main comprehensive risk management and loan management practices. which include methodologies for the evaluation and creation of reserves by type of loan. rent that has not been paid 30 days after it becomes due is recognized as an overdue account. such loans are considered to be overdue until there is evidence of sustained payment. these items give rise to a temporary difference in balance sheet accounts for purposes of deferred income tax.Transfers to the past-due portfolio original loan conditions with respect to payments. Loan rollovers are when a loan’s repayment term is extended past the original date.
p) Buildings. In the case of fixed assets leased under operating leases. Changes in the investee’s results of operations are recognized in the Group’s results of operations as part of the caption Equity interest in net income of subsidiaries and associates. For grading purposes. financial and payment experience risks. Allowances are created based on the book value of these assets using the percentages established by the CNBV by type of property (personal or real) and on the time incurred from the date the asset was foreclosed or repossessed or received as payment in kind. Loans of less than 4 million UDIs are classified based on a stratification of outstanding installments and then by assigning a risk grade and specific percentage of provision based on the number of outstanding installments. the preventive provision for credit risks was determined using a methodology based on a classification of outstanding installments and specific percentage of provision. and changes in the shareholders’ equity of investees are recognized in the Group’s shareholders’ equity as part of the caption Result from holding non-monetary assets. respectively. the commercial loan portfolio includes contingent obligations derived from transactions involving letters of credit that are recorded in Memoranda accounts. appraised value of the property or the agreed amount between the parties. industry.257 on 2009.Equity investment in subsidiaries. The change in the methodology generated an increase in the preventive provisions for credit risks of Ps. As a result of the grading process. Depreciation is computed on the book value of assets using the straight-line method at the established annual rates determined based on the estimated useful lives of the related assets. Equity investments in promoted companies are restated quarterly using the equity method. net of residual value. net of the related accumulated depreciation. q) Long-term equity investments .Venture capital investments (promoted companies) The cost of equity investments in promoted companies is initially recognized as the amount paid for the shares. 2009. . the loan grading methodology is based on the individual application of a formula that considers the expected loss components. Maintenance and repairs are expensed as incurred. o) Foreclosed and repossessed property or property received as payment in kind These assets are stated at book value. adjusting the financial margin accordingly. associates and other Foreclosed and repossessed property is recorded at the lower of either the court-awarded value established in the foreclosure or repossession proceedings or the net realizable value of the property. or at the date of investment. 2010 and 2009. At December 31. using the straight-line method over the established term of the respective agreements. furniture and equipment 49 • The grading rules for loans exceeding 900. assigning a risk degree and specific percentage of provision. 2009. through August 31. The methodology for the grading of the consumer loan portfolio other than the revolving credit card and home mortgage loan portfolio consists of creating preventive provisions for credit risks based on a classification of recoverable balances on outstanding installments at the date of grading. in the case of investments made on subsequent dates. the financial statements of the promoted companies used in the valuation of the investments are from September 30. Effective September 1. This methodology is addressed in the CNBV accounting criteria. which consists of recognizing the Group’s share in the current year results of operations and other shareholders’ equity accounts shown in the financial statements of the investees.• Loans in excess of 4 million UDIs at the date of grading are valued individually based on quantitative and qualitative factors of the borrower and by type of loan. as well as variables related to maturities in the six months prior to the grading and accumulated maturities at the computation date.000 UDIs. 2010 and 2009. associates and other equity investments are recorded initially at acquisition cost and Financial Statements . The rules for commercial loan portfolio grading require a quarterly evaluation of credit risks considering the total amount of loans granted to the same debtor. depreciation is computed on restated values. as well as an analysis of the country. Property received as payment in kind is recorded at the lower of the Equity investments in non-consolidated subsidiaries. granted to Federal and municipal entities and decentralized bodies establish the methodology based on risk grades assigned by a rating agency authorized by the Commission and an evaluation of guarantees. Regarding revolving consumer loans provided through revolving credit cards. The gain or loss on the sale of the shares of promoted companies is recognized at the transaction date. any increase or decrease in the preventive provision for credit risks is credited or charged to results of operations.
effective as of the balance sheet date. t) Deposits and borrowings Current year income tax is determined in conformity with current tax legislation related to taxable income and authorized deductions. Securities placed at a discount and bearing no interest (zero coupon) are valued at the time of issuance based on the amount of cash received. as the case may be. Accrued interest is charged to income. contingent assets and liabilities and commitments The Group records and controls in memoranda accounts all financial and non-financial information supplementary to that shown in the balance sheet. Under this method. v) Income tax The Group performs annual analyses to determine whether there are indicators of impairment in the value of its long-lived assets. including goodwill.are then valued using the equity method. • • UDI denominated assets and liabilities are presented in the balance sheet at their Mexican peso value at the balance sheet date. Contingent liabilities are recognized only when it is probable they will give rise to a future cash disbursement for their settlement. s) Impairment in the value of long-lived assets Accrued liabilities are recognized whenever (i) the Group has current obligations (legal or assumed) resulting from a past event. The difference between the nominal value of the security and the amount of cash received is considered as interest.4. Effects of the FlatRate Business Tax. Grupo Financiero Inbursa . and recognized in results of operations using the real-interest method. At the date of the audit report on these financial statements. (ii) when it is probable the obligation will give rise to a future cash disbursement for its settlement and (iii) the amount of the obligation can be reasonably estimated. The Group and its subsidiaries estimate that they will mostly be subject to the payment of ISR in the following years. deposits withdrawable on pre-established days and notes with interest payable at maturity (PRLVs) are recorded at their nominal values. letters of credit. securities held for safekeeping or securities under management. x) Memoranda accounts Fixed-term deposits made through certificates of deposit (CD’s). The value of the UDI at December 31. as well as property held under trust agreements (when the Group acts as trustee) and asset and liability positions under security repurchase agreements. determined and recorded based on estimates and projections of tax on profits to be incurred in upcoming years. mainly with respect to the opening of lines of credit. creates a valuation allowance for those assets that do not have a high probability of being realized. the value of the UDI was Ps. Accrued interest is charged to income as part of the caption financial margin. which are valued at fair value. there are no indicators of impairment in the Group’s longlived assets.526308 and Ps. Promissory notes issued by the Group’s interbank market are placed at a discount. 50 r) Amortized intangible assets Deferred charges are being amortized at the annual rate of 5% on the book value of the assets. At December 31. w) Assets and liabilities in investment units (“UDIS”) Liabilities in from deposits and borrowings (demand and time deposits and interbank and other borrowings) are accounted for at the underlying amount of the liability. reserves. while the difference between the nominal value of the security and the amount of cash received is recognized as a deferred charge or credit and is amortized using the straight-line method against income during the term of the security.4. deferred income tax is valued. or the enacted rate at the balance sheet date that will be in effect when the temporary differences giving rise to deferred income tax assets and liabilities are expected to be recovered or settled. applying the enacted income tax (ISR) rate or the flat-rate business tax (IETU) rate. Securities included in traditional deposits are classified and recorded as follows: • Securities placed at nominal value are accounted for at the underlying amount of the liability. Under this interpretation. respectively. In determining and recording deferred income tax. if necessary.340166. using the accrual method at the agreed rate. u) Liabilities. 2010 and 2009 was Ps. The Group periodically evaluates the possibility of recovering deferred income tax assets and.570274. Current year income tax is shown as a short-term liability. 2010 and 2009. deferred income tax is determined on all temporary differences between the financial reporting and tax bases of assets and liabilities. net of prepayments made during the year. Deferred income tax is recognized using the asset and liability method. Securities placed at a price other than nominal value (with a premium or at a discount) are accounted for at the underlying amount of the liability. The notional amounts of the Group’s derivatives are also recognized in memoranda accounts. Commissions paid for loans received by the Group or debt placement costs are charged to income under the caption Commissions and fees at the time they are generated. which might give rise to a decrease in the value of such assets. the Group has adopted the Interpretation of Mexican FRS 8.4. tangible or intangible.
except for the changes related to the segregation of property. Late interest on past-due loans is credited to income at the time the interest is actually collected. instruments to be received or to be delivered under repurchase agreements and derivatives for trading. valuation and presentation of commissions collected on loan transactions. Segments are reviewed periodically to ensure their adequate funding and to evaluate their performance. plant and equipment into separate components for those assets with different useful lives. plant and equipment Commissions arise independently of the interest charged or paid. among other points. and accrued interest is controlled in Memoranda accounts. leases. Mexican FRS C-5 establishes that prepaid expenses made for goods or services whose inherent benefits and risks have already been transferred to the entity must be reflected in the caption associated with the good or service. These new standards did not have a significant effect on the Group’s financial information. Machinery and Equipment. depending on the transaction that gave rise to them. Consequently. The adoption of Mexican FRS C-6 is not expected to have a material effect on the Bank’s financial statements. Property. the commissions are collected on a daily basis. Property. In the case of retirement of assets. Interest on financial instruments is credited to income as accrued. Prepaid expenses Interest on performing loans is recognized and credited to income using the accrual method. related to the gain on valuation of long-term equity investments and the effect of valuation of investments in securities available for sale (net of the corresponding deferred income tax). Unlike Mexican accounting Bulletin C-6. the cost of the assets must be null. derivatives and foreign currency. the new standard establishes that for acquisitions of free-of-charge assets. while the amount to be depreciated is the cost of acquisition less the asset’s residual value. margin accounts. ab) Comprehensive income Comprehensive income consists of the net income or loss for the year. Inventories. 2011. income is recognized when the requirements for income recognition outlined under the standard have been met.18% of the monthly balance. as well as gains and losses on the buying and selling securities. and foreclosed and repossessed Financial Statements . the Commission published modifications to the accounting criteria applicable to credit institutions that must be reflected in the financial statements of the first quarter of the year. These commissions are recognized on a daily basis and the accumulated balance is obtained at the end of each month. Mexican FRS C-5. As of May 2010. 2011 and will replace Mexican accounting Bulletin B-5.C. Financial Information by Segment and Mexican FRS B-9. Interim Financial Information.y) Recognition of interest of January 1. In the case of asset exchanges. The amortization of commissions collected on the initial granting of loans is recorded as interest income. depending on the item classification in the statement of financial position. For entities that have not performed this component segregation. Commissions paid are charged to income at the time they are generated. ad) New accounting pronouncements Mexican FRS C-6 was issued by the CINIF in December 2010 to replace Mexican accounting Bulletin C-6. This standard establishes that the main characteristic of prepaid expenses is that they do not result in the transfer to the entity of the benefits and risks inherent to the goods or services to be received. 2012. The most important of such changes refer to: i) changes in the structure of several captions in the statement of operations and statement of cash flows. Mexican FRS C-1 became effective as On January 27. Accounting criteria issued by the Commission The following new accounting pronouncements were published in November 2009: Mexican FRS C-1. prepaid expenses must be recognized in the balance sheet as either current or non-current assets. 2011. since the Commission has issued its own accounting criteria and specific rules regarding these issues. ac) Segment information The Group has identified the operating segments that comprise its different activities and each segment is considered an individual component of its internal structure. while the other two new standards will come into force as of January 1. which will be effective for fiscal years beginning on or after January 1. the Mexican Financial Reporting Standards Research and Development Board (Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera. each with its own particular risks and return opportunities. Mexican FRS B-5. 2011. ii) new rules for the recognition. aa) Intermediation Income Intermediation income and losses mainly result from valuations at fair value of investments in securities. irrespective of the date on which it is due and payable. Moreover. Cash and Cash Equivalents. 2010. thus eliminating the option of performing appraisals. plus the result from holding non-monetary assets. A. Commission generated on retirement account management services are computed at 1. Mexican FRS C-6 requires entities to determine the commercial substance of the transaction and the depreciation of these assets must be applied against the components of the assets. Mexican FRS C-6. or “CINIF”) issued Mexican FRS C-5. z) Commission income and expense 51 In November 2010. Any accounting changes resulting from the adoption of this standard must be recognized retrospectively. the provisions of this new standard will be effective as of January 1. Interest on liabilities is charged to income using the accrual method. and will be effective for fiscal years beginning on or after January 1.
191. S. 4.A. 2010 and 2009 are as follows: 2010 Total assets Total liabilities Shareholders’ equity Net income Banco Inbursa Inversora Bursátil Sociedad Financiera Inbursa Operadora Inbursa Asesoría Especializada Inburnet Out Sourcing Inburnet Ps. S. Out Sourcing Inburnet. S. 253.9997% 99. 166. the Group is the majority shareholder of the following companies: Equity (%) Asesoría Especializada Inburnet.904 Ps. including intercompany transactions.9999% 99.218 219 9 22 4. Fianzas Guardiana Inbursa. At December 31.A.528 Ps. de C. 2010 and 2009. S. Sociedad Financiera Inbursa.V. 4.145 Ps.130 Ps.414 1.9985% 99.9980% 99.082 Ps.V.903 158 21 27 3.331 Ps.A.523 4.9956% 99. 54. de C. 214. 99. 148. On January 31.. The most important change is the elimination of the exception for insurance and bonding institutions to consolidate their financial information. and iii) changes in the definition of several concepts. The application of these modifications is not expected to have a material effect on the Bank’s financial statements. 48. such as collateral and related parties.199 62 61 7.809 Ps.A. at December 31.869 762 980 53 39 931 251 277 45 - Ps. Banco Inbursa.V. S.A.A. de C. 43. S. de C. Seguros Inbursa. 235. Casa de Bolsa Pensiones Inbursa.9993% 99.077 Ps. S.938 511 971 128 39 588 42 208 102 8 Ps.A. 52 property.308 12. 2011.9999% 99.A.816 17.427 Ps. Operadora Inbursa de Sociedades de Inversión.664 Ps.952 Ps. 47.449 3. 187.9999% Highlights of the financial information of consolidated subsidiaries. de C.9999% 99.812 2009 Total assets Total liabilities Shareholders’ equity Net income Banco Inbursa Inversora Bursátil Sociedad Financiera Inbursa Operadora Inbursa Asesoría Especializada Inburnet Out Sourcing Inburnet Ps.A. 198.451 Ps. Inversora Bursátil.764 Grupo Financiero Inbursa .V.980 1.129 149 66 13. 5.V. Consolidation of subsidiaries Groups which must be reflected in the financial statements of the first quarter of the year.580 3.585 3. S. the Commission published modifications to the Accounting Criteria for Controlling Companies of Financial 3. 5. S.
1.894 2.948 Ps. 185 14. 20. 40.095 Ps. 67.506 4.108 3. 45. 68. 44.210 4.548 Ps.871 3.399 52.554 13 285 1.161 941 5.494 2009 Seguros Inbursa Fianzas Guardiana Pensiones Inbursa 4 .333 7. 2.255 Ps.882 1.108 4. 1. 941 Ps. including intercompany transactions. 45.792 1.439 4.616 7. 14.942 53 Ps.067 4. 21.494 Ps.934 2.586 11 130 1.127 Ps.082 158 1.005 263 265 1. 3.536 951 6. 68. 833 Total 4. 2010 and 2009 are as follows: 2010 Seguros Inbursa Investments in securities Debtors Reinsurers and rebonders Other assets Total assets Technical reserves Reinsurers and rebonders Other liabilities Total liabilities Contributed capital Accumulated earned capital Net income of the year Total shareholders’ equity Total liabilities and shareholders’ equity Fianzas Guardiana Pensiones Inbursa .866 .709 224 250 1. 2.516 Ps. 20.088 Ps.361 Ps.556 Financial Statements .333 10. 30.269 55.684 12.428 3. 3.088 Ps.679 Ps. 20.425 158 1.648 Ps.971 14. 42.770 6.884 4.302 .516 Ps.756 7. .186 4. 2.727 Ps.454 Ps.617 Ps. 221 15.697 Ps. 31.563 1.708 436 2. 15.075 Ps.092 Ps.954 39. 67. 42.361 347 1. 20.100 584 5.556 Ps.427 Ps. at December 31.727 Ps.412 1. 22.092 Ps.893 36.930 1.067 3.Highlights of the condensed financial information of unconsolidated subsidiaries.107 5.679 Ps . 18.505 5.296 1.715 10.272 Investments in securities Debtors Reinsurers and rebonders Other assets Total assets Technical reserves Reinsurers and rebonders Other liabilities Total liabilities Contributed capital Accumulated earned capital Net income of the year Total shareholders’ equity Total liabilities and shareholders’ equity Ps.047 Ps.104 Ps. 46. 47.344 1.948 Ps.125 1. 1.572 Ps.978 10.395 12.912 12. 21.846 2.804 4.516 Total 7.662 Ps.
046 33 33 2009 Banxico requires banks to make a monetary regulation deposit based on their deposits and borrowings from the public in Mexican pesos. both on a combined basis and in each foreign currency. 12. the exchange rate was Ps. dollars 2010 Assets Liabilities Net monetary liability position Exchange rate (Mexican pesos) Total in Mexican pesos USD 10.082 Ps. 12.4.731 USD USD 10. the Group had made the following deposits in Banxico: 2010 Special accounts (1): Monetary regulation deposits Accrued interest Current accounts: U.046 Ps. credit institutions must maintain a balanced daily foreign exchange position. the foreign currency position in U.0659. the Group complies with the aforementioned limit. 2010 and 2009 is as follows: 2010 Deposits in Banxico (a) Demand deposits (b) 24/48 hour futures (c) Cash Deposits in domestic and foreign banks Other cash equivalents Call money (d) . respectively. At February 28. Ps.335. 19.209 USD ( Ps.S. 2009 10.020 10.904.0659 224 At December 31.221 Ps. 3.S. Such deposits are for an indefinite term since the withdrawal date is to be determined by Banxico. 12.1730 Mexican pesos per dollar.S. the date of the audit report on these financial statements. the U.S.625.937. Cash and cash equivalents An analysis of cash and cash equivalents at December 31. Grupo Financiero Inbursa . The deposit bears interest at the Weighted Bank Fund Rate.453) Ps. 2010 and 2009. Regarding its individual foreign currency position at December 31.132.083 Ps. 12. per U.865 a) Deposits in Banxico At December 31.082 Ps.120 8 36 2009 653 1.477) 12. dollar deposits 3 3 Ps. dollars is as follows: U.378 13.018. 12. Foreign currency position 54 At December 31.000.3496 Ps. The acceptable combined short or long positions may not exceed 15% of the Bank’s net shareholders’ equity.3496 and Ps. 15.993. 5. 2011.12. 2010 and 2009.038 654 1.13. In conformity with regulatory requirements established by BANXICO.138. This exchange rate was defined by Banxico for the settlement of foreign currency denominated liabilities. 2010 and 2009.419 19 - Ps.642 17. ( 279. 2010 and 2009. dollar.S.12.581. 5.084 890 1. dollar exchange rate was Ps. 12.083 Ps.
respectively. 2009.572) 531 USD 120.976 Ps.3638 Ps.479. there is one three-day call-money transactions with Banorte in the total amount of Ps.638 USD 1. their equivalent in Mexican pesos is as follows: Amount Foreign credit institutions: Wells Fargo Bank Ps.3714 Ps.800 Ps.S. dollars U.467 13.582. An analysis of this caption at December 31. ( 1. dollar purchases U. 12. dollar sales Year-end exchange rate (Mexican pesos) Net position in Mexican pesos ( Ps. 2010 and 2009 is as follows: 2010 Cash receipt (disbursement) in U. 2010.338. 2009 is 4 days.999.062. 653 0. 2009. Average contracted exchange rate (Mexican pesos per dollar) Credit (debit) clearing account balance in Mexican pesos 1. the Group has no demand deposits. Financial Statements .981.S. At December 31.176) USD 411.588. ( 12. d) Call money At December 31. 40.643. 2009 Cash receipt (disbursement) in U. dollar purchases U. 2010 and 2009.14% Interest rate 55 The term for the settlement of these deposits at December 31. dollars.0935 Ps. which are to be settled within a maximum period of two business days and whose liquidity is restricted until the date of payment. c) 24/48 hour futures These are transactions involving the buying and selling of foreign currencies.50% interest rate. ( 13. 2010.743) 19.S.S.3496 5. clearing account debit and credit balances are presented in the balance sheet under the caption Other accounts receivable (Note 13) and the caption Creditors on settlement of transactions. dollars U. which are denominated in U. At December 31.0659 1. At December 31.S. At December 31.713) 13.038 USD 79.0928 Ps.36 and at a 4.180 Ps.S.084 12.S. the Bank did not carry out active call money transactions.b) Demand deposits These deposits consist of investments of the liquidity coefficient and treasury surpluses. dollar sales Year-end exchange rate (Mexican pesos) Net position in Mexican pesos Average contracted exchange rate (Mexican pesos per dollar) Credit (debit) clearing account balance in Mexican pesos 24.
19.919 . Margin accounts 56 Deposits on margin accounts and guarantee deposits are required for the Group to be able to carry out transactions with derivatives in recognized markets (futures) and unrecognized markets (swaps). 25.598 2009 Investment Corporate debt Domestic senior notes (CERBUR) Shares Mexican Treasury Certificates (CETES) Bank notes Development bonds Promissory notes with interest payable at maturity (PRLV) Other Total Ps. 7.197 4. An analysis of futures margin and guarantee deposits for swaps at December 31. . 24 Ps. 55 Ps.856 1.912 Grupo Financiero Inbursa .403 4.507 3. 23.917 Ps. 177 Ps.773 97 Ps. 5. 386 Ps.774 1. 37 . 4. 46 22 224 19 4 Ps. .981 3.769 97 Ps. 315 Unrealized gain on valuation Ps.927 Ps.527 Ps.636 4. 2010 and 2009 is as follows: a) Securities for trading 2010 Investment Accrued interest Unrealized gain on valuation Fair value Corporate debt Domestic senior notes (CERBUR) Shares Mexican Treasury Certificates (CETES) Bank notes Promissory notes with interest payable at maturity (PRLV) Other Total Ps. The deposits are intended to fulfill the Group’s obligations under its derivative agreements (Note 9). 52 3. 209 103 1.011 920 223 7.866 26 163 9. 232 Ps. 2010 and 2009 is as follows: 2010 Chicago Mercantil Exchange (CME) Mercado Mexicano de Derivados (Mexder) 33 2009 34 Ps. 57 Ps. 5. 27.494 1.658 4. 2.092 883 223 7. and these deposits are restricted until the respective transactions have reached their maturity dates. 47 43 92 2.066 Ps. Investments in securities An analysis of investments in securities at December 31.6.449 Ps.727 1.348 4.239 Fair value Ps. 3. 211 For the years ended December 31. 4.847 26 163 9.358 Accrued interest Ps. 2010 and 2009. interest income on deposits was less than one million Mexican pesos.432 50 .
was recorded under the caption securities for trading (Note7a) The acquisition cost of these debt securities was Ps. 1. the Bank sold these instruments with a book value of Ps. the Group computes the valuation effect of the instrument’s embedded credit default derivative (Delta value).68% and 2. and bear interest at an average annual rate of 2. . 24 Fair value Ps.489 Interest earned Ps .500 of these instruments whose See Note 32 for a description of the Group’s risk management policies. 896 Ps. 2009. CEMEA77. (3) In 2010. 1. In prior years.At December 31.230 Ps. management determined that the allowance was understated by Ps. Management believes that the effects of this situation are not material on the Group’s financial statements taken as a whole at December 31. series 200512. The purchase of 73.619.545 An analysis of investments in securities held to maturity at December 31. (4) At December 31. this value was presented in the Derivatives caption.60 that corresponds to and are associated with loans granted by the Group. respectively. 22 Ps. These instruments are issued by Stars Cayman Limited (serial number 15) and Credit Suisse First Boston (NAS116. . At December 31. This redemption as well as the risks to which it is exposed. the Bank redeemed 98.881.302 (1) These are instruments issued by the Group’s correspondent banks gave rise to the recognition of income of Ps. 2010 and 2009.281 5 16 2009 896 1. book value at the date of the transaction was Ps.75%.Delta value (2) Corporate debt (3) (4) Cost investment Accrued interest Less: Allowance for impairment (5) Ps. 170 Ps. This sale was authorized by the CNBV. 1. 2009. This difference was recognized in the Group’s consolidated financial statements in February 2010. a gain on the transaction of Ps. 962 34 928 2. 2010 and 2009 is as follows: 2010 Credit Linked Notes (1) Cost investment Accrued interest Plus: Fair value . 2010 and 2009 is as follows: 2010 Unrealized gain (loss) on valuation 57 Cost Corporate debt Interest earned Fair value Ps. The underlying of the instruments is a cost-bearing loan with no secondary market between the Group’s counterparty and the reference debtor.5. 2010 and 2009.563 2009 Unrealized gain (loss) on valuation Ps. b) Securities available for sale An analysis of securities available for sale at December 31. 3 46 1.908. NAS122 and NAS171).30.34.505 instruments under the new issuance. the allowance for impairment in the value of securities held to maturity was determined using market prices and at the same date. the Delta value is presented in the Securities held to maturity caption as a result of their reclassification to this caption under the CNBV’s specific instructions. 1.26 and the reversal of the allowance for impairment of Ps. NAS120. respectively.033 at the sale date. At December 31. (2) Due to the nature of the Credit linked notes. giving rise to a loss of Ps. Financial Statements .97% and 22%. 847 Ps. the maturity terms of approximately 8. 41% and 60% of transactions related to Credit linked notes have maturities of two years. 32 Cost Corporate debt c) Securities held to maturity Ps. . of instruments classified as for trading is less than three and one year. 2010 and 2009. In 2009. .370 Ps. NAS119.
228 59.8. 75. ranges between 7 and 2 days. 18. Security repurchase agreements 58 a) Debtors and creditors under security repurchase agreements An analysis of this caption at December 31. 5.870 8.613 61.543 Ps.148 13. in turn.017 490 2. respectively.161 Ps.973 Ps.501 68 ( 2009 48.240 (1) The average term of security repurchase agreements at December 31. The type of securities held as a seller and a buyer are as follows: 2010 Mexican Treasury Certificates (CETES) Mexican government development bonds (BONDES) IPAB bonds Participating bonds Bank bonds Promissory notes with interest payable at maturity (PRLV) Domestic senior notes Fair value valuation adjustment Value recognized in memoranda accounts 23. 2.600 Ps. 61. Creditors 13 Debtors 45 2009 Creditors 25 12 Ps.( 694) Ps.329 Ps.346 671 3.570 Ps.( 467) Grupo Financiero Inbursa . 2010 and 2009 is as follows: 2010 Premiums earned (buyer) (Note 27a) Premiums paid (seller) (Note 27b) Ps. 6.148 9) Ps. 59. (2) At December 31.429 Ps. and delivered financial instruments in guarantee which. this caption refers to security repurchase agreements in which the Group acted as a seller (received financing). 2010 and 2009. 1. were received in guarantee in other security repurchase agreements (in which the Group acted as a buyer).501 54.474 62.429 474 238 2.112 Ps.420 62. 1. 6.416 54.493 2009 3.501 62. 206 Ps.569 Ps. 2010 and 2009 is as follows: 2010 Debtors Contracted price (1) Accrued premium Less: Collateral securities sold or delivered in guaranty (2) 54.148 62.799 Ps.139 b) Premiums earned and paid An analysis of premiums earned and paid under security purchase agreements for the year ended December 31.092 Ps.547 . 2010 and 2009. 62.076 3.354 75. 54. 62.
491 1.687 33.420 62.870 13.363 . 6.415 10 59. 2010 and 2009 is as follows: 2010 Mexican Treasury Certificates (CETES) Mexican government development bonds (Bondes) Participating bonds Bank bonds Notes with interest payable at maturity (PRLVs) Domestic senior notes BREMS Fair value valuation adjustment Value recognized in memoranda accounts 23. Derivatives At December 31.563 Ps. dollars Interest rate swaps-Mexican pesos 55.808 7.329 34.785 2. 9. 1.359 9.533 2. 175. the current position of this caption is as follows: 2010 Accounting records Assets Futures (trading) Forwards (trading) Stock-purchase warrants (trading) Swaps Currency swaps Interest rate swaps-U.c) Collateral securities received by the entity An analysis of collateral securities received by the entity under security repurchase agreements at December 31.600 123 2009 48.393 2. 8.704 54.090 109.476 Ps.991 2. 63.723 Ps. 175.216 Ps. 2010 and 2009. 1.S.235 - Ps. 18.891 2.216 Ps.680 Liabilities 64. Assets Offsetting Liabilities 871 338 1.974 20. 62.460 Ps.999 338 Ps.156 Ps.339 2. 16 Ps.531 4. 59.420 20.329 30 59 Ps.100 474 241 2.315 7.597 109.517 Ps.915 Financial Statements .168 490 2.
of agreements MexDer 5.133 14.8.000 March 11 17.908 .417 43. the position in terms of number of currency and interest rate futures entered into with the Chicago Mercantile Exchange (CME) and the Mexican Derivatives Market (MexDer) is as follows: 2010 No.207 309 1.1.797 25.956 Ps.636 5. 916 309 - 13.169 10.510 Maturity January 10 March 10 March 10 The notional amount of CME and Mexder futures at December 31. respectively.851 10.937 Ps. 2009 is Ps.925 Ps.000 2.896 1. 2010 is Ps.S.304 1. Grupo Financiero Inbursa .552 2.645 1.365 55. 2010 and 2009.571 732 4.2009 Accounting records Offsetting Assets Liabilities 60 Futures (trading) Forwards (trading) Stock-purchase warrants (trading) Swaps Trading Currency swaps Interest rate swaps-U.839 and Ps.354 Ps. dollars Interest rate swaps-Mexican pesos Assets Liabilities 74. 9.008.356 163 406 569 1. 9. The notional amount of CME and Mexder futures at December 31.743 55.572 Ps.261 4.617 respectively. dollars Interest rate swaps-Mexican pesos Hedging Currency swaps Interest rate swaps-U.221 40.970 16.534 6. 6.870 Ps.508 a) Futures At December 31.835 141.215 Ps.S.344 1.937 140. of agreements CME Buying Buying Selling 5. Ps. 298 75.520 377 2. 195.122 25.702 MexDer Maturity March 11 CME 2009 No.822 682 452 3.926 15. 9.333 2.862 and Ps. 193.319 52.214 55.
000 150.000 926. 3.777.000.297 PS.485.250 3. 2010 and 2009: 2010 Maturity date Buying: January 2011 February 2011 March 2011 April 2011 May 2011 July 2011 December 2011 December 2012 December 2015 December 2016 Selling: January 2011 February 2011 March 2011 April 2011 May 2011 July 2010 December 2011 December 2016 348.611 205 41 13 108 1.923.611 Financial Statements . 31.000.215 ( 2.000.b) Forwards An analysis of forwards.159 Ps.000.382 Ps.800 16. 16.458 228 27.151 210 41 15 113 1.000 60.000.300.000 3. dollars Contracted price Fair value Unrealized gain (loss) on valuation 61 2.371.297 Ps.391.353.395 Ps.756.000 2.394 Ps. ( 16.208 Net 4.148. 32.271.250 1.S.000 3.028 ( 3.000 216 26.601.406 Ps.486.000 216 21.297 8.784 Ps.207 204 ( 21.000 60.413 ( 199 ( 41 12 ( 102 ( 2.020 ( 21) 11) 545) 5) 2) 5) 223) 192) 187) 1.958 205 41 13 107 2.138 Ps.000 1. ( 76 12 540 5 2 5 187 827 364) 253.250 16.844 Ps.000 200.000 926.300.191) Amount in U.000. 32.000.297 8. 4. 33. is as follows at December 31. based on their nature and maturity.000. 3.485.058 ( 1.
638. 1. the agreement includes a simple loan. 1.411.809 Ps. Since. 2010 and 2009 is as follows: 832 36.000 926.000.260.297 926.000 10.297 150.965 Ps. Management believes that the effects of this situation are not material on the Group’s financial statements taken as a whole at December 31.299 41. the Group recognized an unrealized loss on valuation of Ps.270 for this transaction.251 139 69 224 46 34 108 13 13 2.217 Ps. 1. 863 36.855 Ps.297 926.000.288 Ps.000 8.297 2.640.851 Ps. 1.000 16.250 1.000 5.3572 per share.000 8. which was recognized in the Group’s consolidated financial statements in February 2010.425. Net c) Warrant In January 2009.625.095 Ps.2009 Maturity date Amount in U.117 ( 2.506 Ps.644 ( Grupo Financiero Inbursa .535.531. 23) 31 844 2 1 1) 1) 1) 91 943 299 Contracted price Fair value Unrealized gain (loss) on valuation 4 32) 601) 1) 1 1 3) 78 91) 644) 62 Buying: January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 December 2010 January 2011 July 2011 December 2012 December 2015 December 2016 142. Under the stock warrant.411. At the date of the transaction (January 2009).936. the difference (gain on valuation) between the cost of the premium and its fair value is Ps.000 3.787 1.316.208 40.000 5.000 926.425.563 Ps.210.644.469.000.309. dollars Selling: January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 December 2010 January 2011 July 2011 December 2016 142.208 800 ( 24. 2009.250 3.830.297 60.297 2.889 141 70 224 45 33 107 13 13 1.950.736.000 16.650 ( 138 ( 69 225 46 34 109 13 13 2.417 Ps.050. in addition to this derivative.370. the Group entered into an investment agreement that includes the acquisition of an unlisted stock option (warrant) from its counterparty.045 139 69 224 46 ( 34 ( 108 ( 13 13 1. An analysis of the fair value of the warrant at December 31.830. 35.000 60. 63. the Group is entitled to acquire 7.070 10.832 ( 63. the Group paid a premium on the warrant of Ps. 2010.000 common shares in the counterparty at a strike price of USD6. 2009.000.257. it is considered a structured transaction.000 3.S.000.000 200.000 3. At December 31.328 1. 34.535. the fair value of the premium is Ps.247 ( 3. At December 31.787 2.000 832 25.600.210.000.
( 1.peso Interest rate swaps Mexican pesos U.797) 55.393) Ps. 53.401 41.1.521 Ps. 11. the Group’s swap position is as follows: 2010 Underlying amount Trading: Currency swaps Peso-dollar Dollar.544 and Ps.520) Ps.597 20. To reduce exposure to such risks.378 52.633.938) Ps. ( 1. d) Swaps At December 31.835 Ps. 75. 100.S.938 Ps.122 ( ( ( 13.365) 1.645 Ps. 338 Ps.214) 15. credit and legal risks.484 2. ( Ps. ( The Group’s derivatives involve liquidity.681) 25. 309 The balance of the simple loan at December 31. dollar 68. the Group has established risk management policies and procedures (Note 32). 40.680) 227 219 Present value of flows to be received Present value of flows to be delivered Net valuation Ps.319 1.329) 109.689 11.294) Ps.899 ( 53.687 ( ( 34.307) 351 529 325 102) Present value of flows to be received Present value of flows to be delivered Net valuation Ps.245) Ps.2010 Initial premium Market-to market valuation Intrinsic value 46 2009 - Ps.851) ( ( 2. dollars Ps.090) ( 493) 358 311 20.S. ( 21.704 Ps. Ps. ( 1.914 1.8%. 2010 and 2009.peso Interest rate swaps Mexican pesos U. ( 2009 Underlying amount Trading: Currency swaps Peso-dollar Dollar. ( 55.266 Ps.571 Ps.514 Ps. market.025 44. 292 Ps.604 Ps. 42. dollar Hedging: Currency swaps Peso-dollar Interest rate swaps Mexican pesos U. Financial Statements . 309 63 Ps. ( 10.387) Ps. 55.304) Ps.659) 46) 682) 3.524 Ps. 52.133 Ps. respectively. 174.743 16. 52.1.169 ( ( 43. ( 2. 1. which bear interest of 14. 12.094 10.032 25. 2010 and 2009 is Ps.013 33. 109.741 Ps.S.
160 16. The loans to be hedged are designated for each portfolio. ( 401) Ps.865 Ps. (1) At December 31. the Bank reversed the recognition of hedges at the fair value of their primary position and thus. is as follows (Note 27a): 2009 Gain (loss) due to changes in the valuation of hedging instruments Gain due to changes in the valuation of hedged positions Ps.009 ( 1. As of January 1. 10.982 ( 54. the Group performed the valuation adjustment for financial asset hedges is determined by designating individual loans and loan portfolios as hedged positions in fair value hedging relationships to mitigate the Group’s exposure to interest-rate fluctuations. For the years ended December 31.S. At December 31. 2010.103) 2. 2009. 713) 387 ( 727) Ps. In this way the loan portfolio is divided into three segments: fixed-rate portfolio in Mexican pesos. dollars and variable rate portfolio in foreign currency.887 Ps. Positions are defined by segmenting the loan portfolio based on the inherent risk being hedged. the effect of the valuation adjustment of the Bank’s financial asset hedges included in the statement of income within the financial margin under the caption Interest income (Note 27a). an analysis of the valuation adjustment and related amortization of valuation is as follows: Outstanding of the portfolio Dec.221 26. dollars Ps. 2009 Amortization of the valuation adjustment 2010 (1) Valuation adjustment Dec. 31. and the hedged positions. 2010.068 Ps. Ps. Valuation adjustment Dec. 2009. 981 Ps. as required by CNBV accounting criteria. 520 At December 31. the hedge efficiency testing designed by the Group is in a range of between 80% and 125%. 2009 Fixed-rate loan portfolio in Mexican pesos Fixed-rate loan portfolio in U. an analysis of the offsetting between the changes in the fair value of derivatives recognized in the statement of income in the financial margin caption. in the bank began to amortize the revaluation effect accumulated through such date attributable to the risk being hedged over the term of the loan portfolio. Grupo Financiero Inbursa . 2010.S. dollars Variable-rate loan portfolio in U.S. Valuation adjustment for financial asset hedges 64 Until December 31. fixed-rate portfolio in U. 31. 2010 580 2.296 716) 2. 31. ( 3. 357 163 Ps.10.2009.
3 Ps.11.432 1.699 7.605 Ps.007 Ps. 5.619 6. 3.727 1. 3 . 235 49 112 9 810 108. 427 261 2.452 Ps. 15 1. 16 3 1 1 . 224 26 383 26 . 9.625 Ps. 155. 1.699 7.389 15. 972 Ps.207 Principal Ps. 38 1 8 . 171. 432 Ps.566 Ps.648 Ps.055 102 18.449 Financial Statements . 4.765 Ps.913 238 50 113 9 Ps. 4. 6.238 534 1. 438 427 261 .144 15. 9. 172. 40 Ps. .275 Past-due portfolio Interest Total . Loan portfolio a) Analysis of the performing and past-due loan portfolio by type of loan An analysis of the loan portfolio at December 31.704 61 13.332 1. 6 Ps. 2010 and 2009 is as follows: 2010 Performing portfolio Loan Consumer Discounts Unsecured Chattel mortgage Simple and current accounts Home mortgage Leases Restructured (Note 11f) Rediscounts Principal Interest Total Past-due portfolio 65 Principal Interest Total Ps.440 1.994 Ps.128 26 2. 320 Ps. 25 Ps.157 Ps.154 18. 323 455 4 . 34 2 12 .633 Ps.181 2. 63 Total 1.389 847 1.606 2009 Performing portfolio Loan Consumer Discounts Unsecured Chattel mortgage Simple and current accounts Home mortgage Leases Restructured (Note 11f) Rediscounts Principal Interest .320 1. 154.280 849 1.659 118.618 Ps.422 Ps. . 3. .238 14.246 107. 79 Ps. .619 5.697 535 1.897 13.085 2. 7 1 455 4 227 26 390 27 729 119.996 .011 14.019 1. 27 Ps.
725 1.619 18.983 Ps. 2010 and 2009 is as follows: 2010 Loan Performing loan portfolio: Consumer Discounts Unsecured Chattel mortgage Simple and current accounts Home mortgage Leases Restructured (Note 11f) Rediscounts Past-due loan portfolio: Consumer Discounts Unsecured Simple and current accounts Home mortgage Leases Restructured (Note 11f) Rediscounts Mexican pesos Ps. 176.449 Ps.541 226 26 340 27 2. 11 205 2 1 219 5 1 6 Ps. 160.438 633 8. 129. 9. 6.727 1.000 127.486 Ps. 46.460 Ps.019 1. 5.074 2 2 Total Ps.120 Ps.175 224 33.275 433 261 919 237 50 74 9 1.011 172.154 227 26 390 .142 4 452 613 1 50 1.461 319 3 4 1. 2 4 636 25 34. 113.765 7.105 625 74.591 UDIs Ps.085 1.454 1.133 8.211 Grupo Financiero Inbursa . 9.606 2 Ps.689 7.605 323 455 4 2. 2009 Loan Performing loan portfolio: Consumer Discounts Unsecured Chattel mortgage Simple and current accounts Home mortgage Leases Restructured (Note 11f) Rediscounts Past-due loan portfolio: Consumer Discounts Unsecured Simple and current accounts Home mortgage Leases Restructured (Note 11f) Rediscounts Mexican pesos Ps.234 14.312 14.332 1.076 44.131 427 1.b) Analysis of the loan portfolio by currency 66 An analysis of the loan portfolio by currency at December 31.258 Foreign currency Ps.157 6.262 UDIs Ps.947 Foreign currency Ps.207 155.061 510 84.389 15.697 535 119.994 39 2.967 6. Ps. 27 .699 13.288 986 9.207 111.988 1.440 1. 46. 225 Total Ps. 3.330 565 5.426 1.280 849 108.190 11 45. 20 77 1.181 1.625 438 427 261 2.913 238 50 113 9 4.893 1.238 14.
888 Mexican pesos Foreign currency Total Mexican pesos Foreign currency Total 67 Ps.195 Ps. are subject to maximum capital limit computed using the following table: Financial Statements . 1. 27.563 Mexican pesos Foreign currency Total Ps.871 Ps.Loans constituting common risk Loans granted to a single person or to a group of persons who are considered a single person because they represent a common risk.993 Mexican pesos Foreign currency Total Ps.565 At December 31.464 6.497 9.734 Ps. 9. .464 Ps. c) Operating limits The CNBV establishes the limits to be observed by the Group’s bank subsidiary (Banco Inbursa) for the granting of loans.068 7. 3.984 Ps.888 Ps.045 10. 3. 2. 2.871 16. 1. 8. 3. 9. . 1. 3.497 Ps. 2.Ps.814 Ps.138 3.045 8.089 Ps.350 2.089 4.563 Ps. 1.Loans granted to government entities An analysis of loans granted to government entities by currency at December 31. 2010 and 2009 is as follows: 2010 Loan Performing loan portfolio: To the Federal government or secured by the government To states or municipalities or backed by them To decentralized or de concentrated bodies $ 28 Ps. 2010 and 2009 is as follows: 2010 Loan Performing loan portfolio: Interbank To non-banking financial institutions Ps.903 2009 Loan Performing loan portfolio: Interbank To non-banking financial institutions Ps. 28 16.Ps. 7. 10. 24. 1.250 Ps. 1.066 2009 Loan Performing loan portfolio: To states or municipalities or backed by them To decentralized or de concentrated bodies Ps.505 Ps.122 . The most important of these limits are as follows: .734 5.872 . 2010 and 2009 there are no past-due loan portfolio balances payable by government entities.002 Ps.Loans granted to financial entities An analysis of loans granted to financial entities by currency at December 31. 6.439 Ps.
300 27. At December 31.565 Ps.3% of the Bank’s net capital. .3. . At December 31. these loans aggregate Ps. which represented 62.089 and Ps.074 Grupo Financiero Inbursa . 2010 and 2009.066 Concentration percentage Amount 2009 Concentration percentage 83% 5% 4% 1% 7% 100% 73% Ps. 2010 and 2009. may not exceed 50% of basic net capital.872 6.16. At December 31. these loans aggregate Ps. respectively. 2010 and 2009.512 and represent 62. and loans granted to state-owned entities and bodies aggregate Ps. including public trusts.Other loan limits The sum of loans granted to the main three largest borrowers. 2010 and 2009.19. the maximum amount of financing due from the Banco Inbursa’s three largest borrowers aggregated Ps.073 and Ps. loans granted to multiple-type banking institutions aggregate Ps. may exceed the maximum limit applicable to that particular lender.903 10.8% and 51. plus irrevocable lines of credit granted to related parties. the balance of the loans granted to relate parties have not exceeded such limit (Note 31).890 9. in no case may these loans represent more than 100% of the basic capital. that exceed 10% of the Bank’s net capital. At December 31. At December 31. 2010 and 2009. Banco Inbursa has met the aforementioned limits.052 1. 2009.4% of the Bank’s net capital. 2010 and 2009.24. At December 31. However.229 10.734.379.529 1.1. 160. 176. the Bank has granted five and three loans. respectively.497.3. may not exceed 100% of the net capital.879 6% 6% 1% 14% 8.776 and Ps.23.211 100% Ps. granted by foreign financial institutions with strong investment ratings. The total amount of intercompany loans. d) Analysis of risk concentration By economic sector An analysis of risk concentration percentages by economic sector at December 31.% limit on basic capital 12% Capitalization level of loans More than 8% and up to 9% More than 9% and up to 10% More than 10% and up to 12% More than 12% and up to 15% More than 15% 68 15% 25% 30% 40% Loans backed by unconditional and irrevocable guarantees that cover both principal and interest and restatement. At December 31. 127.265 and represent 89. respectively. plus those granted exclusively to multiple-type banking institutions and those taken out by state-owned entities and bodies. per each person or group of persons constituting common risk. 2010. 2010 and 2009 is as follows: 2010 Amount Private (companies and individuals) Financial Consumer Home mortgage Loans to government entities Ps.35. respectively. 132. respectively.Loans extended to related parties The Mexican Credit Institutions Act establishes limits for the granting of loans to related parties.5% of the net capital computed at December 31.
. 18 . 35 Ps.277 Ps.346 Ps. Past-due portfolio Interest .859 28. . 2. 1 9 . 176. . Total 112 338 132 7 2 39 Ps.296 Ps.599 540 . 6 Ps. 2010 and 2009.291 3.097 678 . 2. 4.623 554 18 Principal Ps.343 2009 Performing portfolio Principal Simple Restructured Consumer Home mortgage Leases Discounts Unsecured Interest 24 14 . 3.987 The most important policies followed by the Group in the determination of the troubled loan portfolio are described in Note 32.309 1. 11 Ps. . 2. e) Analysis of economic environment (troubled loan portfolio) At December 31.074 The most important policies followed by the Group in the determination of its risk concentrations are described in Note 32.381 8% 10. 3 3 . 14 Ps. the Group’s troubled loan portfolio includes mainly D and E risk graded loans. .062 Ps.097 Ps.194 Ps. 7. 2010 and 2009 is as follows: 2010 Zone Central Northern Southern Foreign and other Amount Concentration percentage Amount 2009 Concentration percentage 71% 7% 4% 18% 100% 69 Ps. Total 1. An analysis is as follows: 2010 Performing portfolio Principal Simple Restructured Consumer Home mortgage Leases Discounts Unsecured Interest 4 17 . 915 Ps. Total 3. Past-due portfolio Interest . Financial Statements .266 16% 29. 3.211 67% Ps.453 Ps. . . 915 168 143 96 6 5 4 Ps.Ps. .471 100% Ps. 51 Ps.101 695 1 9 Principal Ps. 2. 2. 9 .357 112 329 132 7 2 39 Ps. 2.337 Ps. . 160.967 Ps.956 9% 6.061 14. 1. Total 168 146 99 6 5 4 Ps. 20 Ps. . .097 15. 113.By region An analysis of risk concentration percentages by region at December 31.504 Ps. 1. 4. . . 13 Ps. 7. 118.
.218 16 262 1 29 1.890 5. . 5. mortgage and property Pledge.316 Ps. .585 16 247 50 Ps. . 18. 18.955 386 80 49 24 10. . 13. . . 1 Ps.765 Ps. 13. .828 3.704 Ps.045 3. 1 Total Principal Past-due portfolio Interest .868 3. 223 Ps. 6 . . . 1 Ps. . .279 2.Additional guarantees obtained in restructured loans At December 31. 1 Ps. 39 - Ps.873 Pledge Ps. 390 2009 Performing portfolio Loan Simple mortgage Simple chattel mortgage Guaranteed simple Simple with other guarantees Chattel mortgage Unsecured simple Consumer Home mortgage Principal Interest Total 40 7 2 .052 3.305 Ps.263 Amount Ps. 2010 and 2009 is as follows: 2010 Performing portfolio Loan Simple mortgage Simple chattel mortgage Guaranteed simple Simple with other guarantees Chattel mortgage Unsecured simple Home mortgage Principal Interest 51 7 7 1 .883 5. 157 . 5. Ps.220 16 263 1 29 39 . 2010 and 2009.004 Ps.f) Performing restructured loans 70 Balances An analysis of performing restructured loans at December 31.039 Ps.055 Ps.578 15 247 49 1. 112 Ps. 3896 5. 102 Ps. dollar denominated Simple mortgage 2. 74 1. 11 Ps. . 8.157 Ps. 113 . 224 1. . 7 Ps.390 Nature of guarantee Pledge. 8. Total 163 3 Ps. Principal Past-due portfolio Interest Total . 3 . 383 Ps. 61 Ps.330 2. mortgage and public shares Public shares Pledge Mortgage Public shares Grupo Financiero Inbursa . . additional guarantees obtained in restructured loans are as follows: 2010 Type of loan Mexican peso denominated Simple mortgage Simple with other guarantees Simple chattel mortgage Guaranteed simple Restructured home mortgage Chattel mortgage U. 73 Ps.S. 13. . 35 Ps. 1 . .
4.606 Ps.104 (Ps.110 346 14 24 24 1. 2009 2. .673 416 2. 2010 aggregate Ps.449 Financial Statements .807 g) Past-due loan portfolio .622 Pledge. mortgage and property Pledge. dollar denominated Simple mortgage Simple chattel mortgage UDI denominated Consumer 1 Mortgage Ps.496 612) 1. which at December 31.449 Ps.325 (Ps.106 in 2009).457 1. 3. 3.Changes An analysis of activity in the past-due loan portfolio at December 31.360 4. 2. mortgage and public shares Public shares Pledge Mortgage Public shares Amount Nature of guarantee 71 The aforementioned analysis includes the balances of the past-due consumer and mortgage loan portfolio. 2010 and 2009 is as follows: 2010 Initial balance Add (less): Net transfers from performing portfolio to past-due portfolio and vice versa (1) Recoveries Write-offs Ending balance ( ( 1.603 Ps. Ps.160 24 1.606 Ps.038) 2009 Ps.449 1.303 Ps. respectively. 2010 and 2009 is as follows: 2010 1 to 180 days overdue 181 to 365 days overdue More than one year overdue Ps. 104 1. 1.2009 Type of loan Mexican peso denominated Simple mortgage Simple with other guarantees Simple chattel mortgage Guaranteed simple Restructured home mortgage Chattel mortgage U. 4.S. 778 525 3.438 in 2009) and Ps.184 Pledge Pledge Ps.698) ( 602) ( 2. The Group’s management did not consider it necessary to prepare the aged analysis of such portfolios separately due to their relative immateriality.Age An aged analysis of the past-due loan portfolio at December 31.
a) Commercial loan portfolio (including loans granted to financial and government entities) An analysis of the preventive provision for credit risks at December 31.736 5 14. For the years ended December 31. - Ps. based on the policy described in Note 2m) above.095 17.010 6.053 35.741 14.741 1. 236 24.927 2.390 2.841 15.152 2. the Group transferred Ps.715 17.700 and Ps.588. 38.346 Ps.059 120 15. Ps. Preventive provision for credit risks An analysis of the preventive provision for credit risks at December 31. 191 26.715 Ps.815 44 1.121. 2010 and 2009. the Group did not pardon. 2009 14. 2010 and 2009.406 299 92 7. 2010 and 2009.366 259 1. write off or make changes against any of its loans granted to related parties that gave rise to the cancellation of the corresponding asset.139 24. For the years ended December 31. transfers made from the past-due portfolio to the performing portfolio aggregated Ps. 1.813 155. from the performing portfolio to the past-due portfolio.462 Ps.106. 2010 and 2009 is as follows: 2010 Commercial loan portfolio (a) Consumer loan portfolio (b) Home mortgage loan portfolio (c) Ps. Ps.715 Ps. 47. respectively.438 32.366 17. 72 (1) For the years ended December 31.846 Ps.920 Ps.741 Ps.974 1.124.865 2.005 126 18.105. - Grupo Financiero Inbursa .320 12.402 747 134 7. 2010 and 2009 is as follows: 2010 Risk A1 A2 B1 B2 B3 C1 C2 D E Graded portfolio Additional estimate Required provision Amount provided for Amount of liability Amount of provision Amount of liability 2009 Amount of provision 17.666 30.704 11 17.711 238 1.299 2.788 4.243 and Ps. 12.084.999 109 1.017 Over or understatement Ps. 170.813 14.074 4. respectively.
63) ( 1. - Ps. 3) 498) 251) 15. 2009 Amount of provision 3. Ps.572 Ps.b) Consumer loans An analysis of the provision for consumer loans at December 31.005 Ps.920 4. 4 14 21 41 40 120 120 Amount of liability Amount of provision 519 216 1. 1.137 .427 4. 1. 6. 10. 2010 and 2009 and is as follows: 2010 Risk A B C D E Graded portfolio Amount provided for Over or understatement d) Changes in estimate Movements in the preventive provision for credit risks at December 31.610 Amount of liability Ps.059 1. 81 66 58 40 1. Ps.261 Ps. - 15. - Ps. 33 Ps.135) ( 303) ( 18.059 73 Ps. 2009 12.299 Ps.043 78 79 50 49 Amount of provision Ps. 2010 and 2009 are as follows: 2010 Balance at beginning of year Add (less): Increase in provision (Note 26a) Transfer to the provision for foreclosed and repossessed assets Write-offs Revaluation of UDIs and foreign currency Balance at end of year ( ( ( Ps.062 Ps. 2009 Amount of provision 983 Ps.005 1. 3 14 25 35 49 126 126 Amount of liability Ps. . 338 519 274 6.920 Ps.228 Ps. 17 2.529 284 127 357 274 1.846 Ps. Financial Statements .051 Ps. 2010 and 2009 is as follows: 2010 Risk A B B1 B2 C D E Graded portfolio Amount provided for Over or understatement c) Mortgage home loans An analysis of the provision for mortgage home loans at December 31.558 346 622 218 52 44 100 137 422 217 Amount of liability Ps. 1.
531 3 534 2009 14. 2010 and 2009 is as follows: 2010 Clearing accounts for currency exchange operations (Note 5c) Other clearing accounts Ps. 334 Ps. Ps.005 Ps. Grupo Financiero Inbursa .204 Ps. 2010 and 2009. At December 31. net 74 An analysis of this caption at December 31. 2009 198 534 6 128 1. 347 Ps.606.638 Ps. net An analysis of this caption at December 31.236.011 6) ( 21. respectively. 2010 and 2009 is Ps. ( Ps. 2 19.101) Ps.13.526 (1) An analysis of this caption at December 31. 19. 1.044 620 2.530 4) 2. furniture and equipment. 19.293) ( 2009 373 924 384 245 180 33 2. respectively.263 and Ps.445 and Ps.640 Ps. Buildings. 2010 and 2009 is as follows: 2010 Recoverable taxes Debtors for settlement of transactions (1) Commission debtors Commissions receivable Debtors under swap margin accounts Other debtors Allowance for bad debts Ps.640 24 11 414 588 21.497 1. 2010 and 2009 is as follows: Depreciation rate Buildings Office furniture and equipment Electronic computer equipment Machinery and equipment Automobile equipment Land Other Accumulated depreciation 5% 10% 30% 30% 25% ( 2010 324 984 383 224 180 55 2.486 1. 1. the aforementioned analysis includes the balance of assets under operating leases with a net carrying value of Ps. 347 Ps.385 Depreciation expense of the years ended December 31. Other accounts receivable.
860 12.656 5.895 17 5 21 15 3 4) 57 75 Other movements Ps. 20.( 279) Ps. 171 ( ( ( ( ( ( ( ( ( 29) 6) 3 2) 3) 10) 9 5) 2 19 26 4 3 2 18 23) 4 84 23 3) 287 876 585 434 1.239 Ps. 1.426 Financial Statements .274 10 335 110 381 260 50 8 28 12 1.294 14.292 5.132 Ps.958 6.611 238 13 9 6 53 73 14 126 213 256 247 58 19 251 166 44 215 788 250 6 4. 1.210 1. ( ( ( ( ( ( ( ( ( ( 209) 2) 4) 5) 39) 2) 62) 323) 20 3) 17 10 10 4 1) 27 Balance 2010 Ps.782 7 10 50 63 18 121 215 236 271 22 316 184 21 219 872 273 19 250 9 4. 18. 2.792 2.194 Issuer Venture capital investments: Infraestructura y Transportes México Controladora Vuela Compañía de Aviación Quality Films Media Planning 1 Concesionaria Vuela Compañía de Aviación Argos Comunicación Celsol In Store de México Aspel Grupo Aspel México Pure Leasing Grupo IDESA Laboratorio Médico Polanco Landsteiner Pharma Landsteiner Scientific Salud Interactiva Salud Holding Giant Motors Gas Natural Hildebrando Progenika Enesa Other Unconsolidated subsidiaries: Seguros Inbursa Pensiones Inbursa Fianzas Guardiana Inbursa Other investments: Asociación de Bancos de México Inbursa Siefore Inbursa Siefore Básica 1 Inbursa Siefore Básica 3 Inbursa Siefore Básica 4 Inbursa Siefore Básica 5 Procesar Mutual funds Other Balance 2009 Ps. 63 19 250 6 338 - Ps.362 10 308 95 360 245 47 8 28 13 1.114 Additions Ps.188 5.15. 338 Ps. 2010 and 2009 is as follows: 2010 Equity in net income (loss) Ps. Long-term equity investments An analysis of this caption at December 31.
. . . . . 281 Ps. .292 5.491 Additions Equity in net income (loss) Ps. .525 10. . . 222 Ps. .132 Grupo Financiero Inbursa . ( 136) .549 Ps.114 120 Ps. . 2. 238 13 9 6 53 73 14 126 213 256 247 58 19 251 166 44 215 788 250 6 4. . . 347 ( 12) . . 18. . . . 222 3 1 16 7 10 10 24 2 13 36 9 1 29 13 . 638) Ps.240 1.Ps. . . 30 9 ( 18 52 57 13 ( 116 223 257 ( 225 ( 56 6 277 ( 157 180 214 759 . 1. 1. 941 29 . 6 4.656 5.427 4. . 145 ( 509) Ps. .999 Ps. 11) 2) . 7 8 ( 20) .611 . ( 10) . ( .397 ( 129) . .094 10 288 89 335 227 43 7 469 10 1. . 237 . 1) 67 ( 508) . .860 12. . ( 17) 3) . .2009 76 Issuer Venture capital investments: Infraestructura y Transportes México Controladora Vuela Compañía de Aviación Quality Films Media Planning 1 Concesionaria Vuela Compañía de Aviación Argos Comunicación Celsol In Store de México Aspel Grupo Aspel México Pure Leasing Grupo IDESA Laboratorio Médico Polanco Landsteiner Pharma Landsteiner Scientific Salud Interactiva Salud Holding Giant Motors Gas Natural Hildebrando Other Unconsolidated subsidiaries: Seguros Inbursa Pensiones Inbursa Fianzas Guardiana Inbursa Other investments: Asociación de Bancos de México Inbursa Siefore Inbursa Siefore Básica 1 Inbursa Siefore Básica 3 Inbursa Siefore Básica 4 Inbursa Siefore Básica 5 Procesar Mutual funds Other Balance 2008 Ps. . . . .478 61 ( 104) .210 1. 20 6 25 18 4 1 4 ( 2. Other movements Balance 2009 . 1. . . 62) . 15.109 ( 146) . . . . . .362 10 308 95 360 245 47 8 28 13 1.329 4. . 6) . .
000 11. ( 224) Ps. dollars December 2003 April 2004 March 2005 January 2006 June 2008 Mexican pesos September 2008 Ps.261 ( 23) 20 Ps. 3.701. 181 59 51 88 1 380 Ps.S. net At December 31. the premium paid and the related amortization in pesos for the years ended December 31.( 21) 256) Ps.16.925% Premium paid Accumulated amortization Balance of unamortized premium Ps.93% 11.162 9.000 Fixed interest rate 11.93% 11.93% Ps.775% 33 Ps.365% 10 33 43 ( 10) ( 13) Ps.000. 2010 and 2009 was Ps. 181 Ps. 78 26 24 8 136 Ps.93% 8.617 224) 1.091 15. 2010 and 2009. 20 199 USD 41.57.000.000 1. 2009 251 130 199 878 159 22.214.171.1244 234) Ps.000 10. deferred charges and intangibles.660% 5.701. Under the related loan agreements.091 15. ( 88) Ps.93% 8.170 20.775% 9. dollars December 2003 April 2004 March 2005 January 2006 June 2008 Mexican pesos September 2008 September 2008 Ps. Financial Statements .S.000 76. 1. in certain cases borrowers may not make early payments.162 Ps. An analysis of the balance of the portfolio in the original currency. 1.10 and Ps. 12 148 Nominal amount USD 41.000.( 103) 59 51 79 1 371 ( ( ( ( ( 33) 27) 71) 1) 235) USD 163. respectively.925% ( 27) ( 22) ( 63) ( 1) ( 201) Nominal amount Fixed interest rate Premium paid Accumulated amortization Balance of unamortized premium ( Ps. due to the prevailing market conditions.000. 2010 and 2009 was Ps.387.000 10. respectively.098. gave rise to the payment of a premium. Other assets.000 9. 423 Amortization expense charged to results of operations for the years ended December 31.098. 93 32 29 25 179 11. ( Ps.93% 11.170 20. 2. 2010 and 2009 is as follows: 2010 Date of repurchase U. 404 2009 Date of repurchase U.000 76.660% 5.186.261 USD 163.51 and Ps. (a) The Group purchased a portfolio that.470 Amortization charged to results of operations for the years ended December 31. 253 ( 130 148 923 250 1.387. this caption consists of the following: 2010 Software licenses Goodwill – SINCA Inbursa Premium on loan operations (a) Guarantee deposits Other Amortization of software licenses Ps.393 77 Ps.
48. At December 31. interest payable on term deposits was Ps.284 Ps. 2.216. Traditional deposits 78 a) Demand deposits An analysis of demand deposits at December 31.377 Ps.454 448 132 5.434 Ps. respectively (Note 27b). dollars (1) UDIs (2) UDIs (1) Mexican pesos (1) Mexican pesos (2) Promissory notes with interest payable at maturity (PRLV): Placed through the market (2) Placed over the counter (1) Deposits withdrawable on pre-established days (1) 61.215 76.407. Returns on foreign currency denominated deposits are tied to the LIBOR rate.638 70. they must notify the CNBV of this situation on the following business day.018 377 247 73 7 450 254 Ps. 2010 and 2009 is as follows: Mexican pesos 2010 2009 Foreign currency translated to Mexican pesos 2010 2009 2010 Total 2009 Checking accounts Interest-bearing Non-interest bearing Total Ps. in one or more liability transactions. Banco Inbursa has not exceeded such limit.734 Ps.000 4. 51. receive loans from their customers or obtain resources from one person or a group of persons considered as a single economic entity. respectively (Note 27b). 46. 1. (2) Placed in the money market.S. interest payable on demand deposits was Ps. For the years ended December 31.531 Ps. 48. 2010 and 2009. 1.204 1. 1.648 Ps. 46.998 and Ps. deposits maturing in less than one year aggregated Ps.624 Ps.193 Ps.934 Ps. and that represent more than 100% of the net capital.17. (1) Placed with the general public. 2010 and 2009.2. respectively. 50.549 Ps.579 2009 10. 1.272 For the years ended December 31.398 1 70.112 Ps.399 1. time deposits are as follows: 2010 Fixed-term deposits: U. At December 31. 2010 and 2009.3.56. deposits by foreign companies and banks and PRLVs (notes with interest payable at maturity). 2010 and 2009. b) Time deposits This caption consists of fixed-term deposits.070 Grupo Financiero Inbursa .505 1.005 and Ps. The interest rate on Mexican peso denominated deposits is tied to the Mexican Treasury Certificate (CETES) interest rate and to the 28-day adjusted interbank rate (TIIE).952 and Ps.314 835 430 2. 62. 1.402.75. Whenever credit institutions must establish deposits.622 Ps. 1.5.226 73.641 Ps.2. At December 31. 51.735 Ps. 49. 2010 and 2009.
and the sum of the outstanding issuances on a given date may not exceed this authorized amount.08% 5.989 . 18.891 Ps. current issuances represent 31.20% 5.500.314 Ps.669 79 On June 30.c) Debt instruments issued At December 31.000 50.496 Ps.174 7 1 35 43 1.217 .217 527 322 849 Ps.4 (Note 31). maturity date. promissory notes with interest payable at maturity and bank bonds”.13% 5. 36 527 322 849 Ps. 2010 and 2009 is as follows: 2010 Principal Demand deposits Mexican-peso borrowings Call Money (1) Short-term Mexican-peso borrowings Banxico bids Bancomext Nafin Promotora Inbursa Foreign currency borrowings NAFIN Long-term Mexican-peso borrowings Nafin Discounted portfolio (FIRA) Other Total long-term borrowings Interest Total Principal 2009 Interest Total Ps. Interbank and other borrowings This caption consists primarily of borrowings from financial institutions and government entities that bear interest at current market interest rates.50. if applicable). The authorized maximum amount is Ps.539 Financial Statements . For the year ended December 31. 43 867 405 42 1. interest payable on domestic senior notes totals Ps. An analysis of this caption at December 31. 9. 2010. 8 Ps.487 8.000 or its equivalent in UDIS.Ps. an analysis of balances of debt instruments issued represented by domestic senior notes is as follows: Issuance Banibur 10 Banibur 10-3 Banibur 10-2 Banibur 10-4 No.001 652 5. among other aspects.314 Ps. .3% of the total authorized amount. 8. 8 Ps. of securities 50. 2009.927 87 .014 11 4.707 23 6. At December 31.174 .02% Balance Ps.000. total amount of the issuance. 87 4. 15.015 5. interest rate and periodicity of interest payments (or the discount rate. 43 8. 36 Ps. issuance and settlement dates.000. 11 36 5.001 Ps. 2010.000 Interest rate 5. 5.000 156. term. nominal value. 4. the Commission authorized the provisional registration in the National Securities Registry of securities to be issued by the Bank in the National Registry of Securities under the “Revolving program for bank domestic senior. These terms will be agreed upon by the issuer and underwriter and will be published in the respective prospectus on the date of each issuance.700 22 6.452 8.000. the Group had no position in issued debt instruments. 5.978 36 5. At December 31.874 867 405 42 1. 2010. 2010. Each security issuance made through this program will have its own characteristics.182 (Note 27b) and the total debt issuance cost is Ps.838 Ps. 9. such as issuance price.500. certificates of term bank deposits. through official document 153/3618/2010.000 6. 5. 4.000 50.025 1.
04% in 2009). 2009 740 56 37 19 179 69 23 1 1.1 and Ps. 2010 and 2009. the Group and its subsidiaries have yet to file their final 2010 income tax returns.4. short-term Mexican-peso borrowings bear interest at an average annual rate of 4. 1. such as the value of shares sold.4. 19. Deferred taxes are recognized on all differences between the financial reporting and tax bases of assets and liabilities (Note 22). the income tax of the Bank and its subsidiaries shown in the table above may be subject to changes. interest payable on interbank loans was Ps.063 Ps. long-term Mexican-peso borrowings bear interest at an average annual rate of 5. Taxes on profits a) Income tax The Group is subject to the payment of corporate income tax an annual rate of 30% for 2010 and 28% for 2009. respectively (Note 27b). premiums paid on loans acquired and certain provisions.Reconciliation of the effective income tax rate The effective income tax rate shown in the statement of income for the years ended December 31. respectively. there are no guarantees for the borrowings received. and (ii) temporary differences in the recognition of income and expenses for financial and tax reporting purposes of certain items.112 and Ps.19. Ps. 2010. 80 For the years ended December 31. respectively. 2010 and 2009.3 and Ps. 2010 and 2009 is as follows: ISR 2010 Banco Inbursa Sociedad Financiera Inbursa Inversora Bursátil Operadora Inbursa Other subsidiaries Grupo Financiero Inbursa Ps. An analysis of the income tax charge as shown in the consolidated income statement for the years ended December 31. respectively.004 At the date of the audit report on these financial statements. At December 31. 2010 and 2009.437 and Ps.476 Ps. reported taxable income of Ps. the Group. . the equity interest in net income of subsidiaries and associates and non-deductible expenses. the Group has unused lines of credit of Ps. 2010 and 2009 is 23% and 26%. 2010 and 2009.360. Therefore. 29% for 2013 and 28% for 2014 and thereafter. Consequently.24% in 2009). respectively.At December 31. though such changes are not expected to be material by management. At December 31. on which it paid income tax of Ps.12% (6. For the years ended December 31. At December 31. A reconciliation of the statutory corporate income tax rate to the effective tax rate recognized by the Group for financial reporting purposes is as follows: Grupo Financiero Inbursa .291. such as the valuation of derivatives and investments in securities. as an economic legal entity.66. respectively. the income tax rate will be 30% from 2010 to 2012. 141 152 1.48% (6. 2010. The Group’s accounting income and taxable income are not the same due to: (i) permanent differences derived from the treatment of certain items.
During the first quarter of 2008. accordingly. Financial Statements .239. net of authorized credits. The Group and each of its subsidiaries do not consolidate for tax purposes and.688 Ps.626 30% 1. 2009. 7. the court declared that no constitutional guarantees are violated by the IETU Law. For the year ended December 31. For the year ended December 31. 20.5% and 17%. . IETU Credits result mainly from certain fixed assets acquired during the transition period as of the date on which the IETU became effective.451 1. At December 31. b) Flat-rate business tax (IETU) Current-year IETU for 2010 and 2009 is computed by applying the 17. as shown in the statement of income. the Group and its subsidiaries paid ISR. the caption Equity interest in net income of unconsolidated subsidiaries and associates. in a plenary session of the Mexican Supreme Court of Justice. Outsourcing Inburnet.2010 Net income before taxes per statement of income Reconciling items: Annual inflation adjustment (tax item) Non-deductible expenses Net income of subsidiaries Difference in the tax cost of shares Other permanent items Income before income tax . 2010 and 2009. plus permanent items Statutory income tax rate Income tax Deferred income tax from prior years (recorded directly in shareholders’ equity) Effect of change in deferred income tax rate (Note 22) Total current-year and deferred of income tax Effective income tax rate ( ( 2.2. respectively. reported employee profit sharing of Ps. 1. the balances of this account aggregate Ps. IETU is payable only to the extent it exceeds income tax for the same period.298 Ps.388) 201 152 139) 17) 6. However. includes the respective current-year taxes. At the date of the report on these financial statements.688 . file their tax returns on an individual basis. 2010 and 2009. the Group and its legal advisors are awaiting the respective ruling to know the exact scope of such pronouncement. rate to income determined on the basis of cash flows.909 Taxes on profits of unconsolidated subsidiaries regulated by the CNSF are recorded in results of operations of such subsidiaries. 1. respectively.260 28% 1. the only consolidated subsidiary that has personnel of its own.865 and Ps.1. 7. c) Employee profit sharing Employee profit sharing is determined basically at 10% of taxable income. Therefore. excluding the taxable or deductible nature of the annual inflation adjustment.038) ( 370 407 177 ( 588) ( 5. Creditors on margin accounts This caption corresponds to clearing accounts for foreign exchange and securities transactions that have not been settled at year-end.753 11 145 26% 81 Ps. some of the Group’s subsidiaries filed for indirect relief (amparo) against the unconstitutionality of certain provisions contained in the IETU Law. 23% 2009 Ps.
Deferred taxes The most important temporary differences included in the computation of deferred taxes at December 31.074 23 44 140 13 44 Ps. Sundry creditors and other accounts payable 82 An analysis of this caption at December 31. Grupo Financiero Inbursa .491 Ps. 1. 1. 2010 and 2009 is as follows: 2010 Sundry creditors (1) Acceptances on behalf of customers Guarantee deposits Payable drafts Cashier’s checks Provisions for accrued expenses Certified checks Contributions to the contingency fund Ps. net Ps. The statutory rate applicable to the temporary differences that gave rise to deferred taxes at December 31.849 Ps. 2010 and 2009.220 and Ps. this balance includes Ps. 22.212) and (Ps. respectively.454 Ps. 833 108 60 66 108 155 866 195 2. 2010 and 2009 are as follows: 2010 Deferred tax liabilities: Valuation of shares Valuation of financial instruments Premium paid on loan operations Derivatives Investment in promoted companies Amortization of discounts on loans acquired Valuation of hedged assets Other Deferred tax assets Asset tax paid Available tax loss carryforward Amortization of goodwill Valuation of financial instruments Valuation of available-for-sale securities (Note 7b) Derivatives Overstatement in deductible preventive provision for credit risk Other Deferred income tax liability. 45 7 10 659 242 963 2.495 450 1.168 Ps.391 2009 For the years ended December 31. 45 10 7 10 10 141 223 2.156 347 133 30 34 70 29 51 2009 Ps. 2010 and 2009 was 30%. the Group recognized a deferred tax (expense) of (Ps.21.184 79 46 868 235 30 648 364 3.283 (1) At December 31. 1.952 for debt with Lehman Brothers resulting from restrictions on the settlement of foreign currency and forwards purchase and sale transactions resulting from this entity’s declaring bankruptcy (September 2008). 3.905). 2010 and 2009. 1.
the balance of letters of credit granted by the Group aggregates Ps. rent charged to results of operations aggregates Ps.2. respectively. transformation. Some of these transactions are carried out with affiliated companies and such intercompany business is not deemed to be material with respect to the Group’s financial statements taken as a whole.0. and the deterioration of their financial position to the point that they are unable to meet legally specified capital requirements. At December 31. bankruptcy declared by the regulatory authorities. even those comprising part of the respective group. Additional capital stock will be represented by series “L” shares.606.342. Management estimates that minimum compulsory rental payments under operating leases at December 31. management believes that the Bank stands a good chance of receiving favorable rulings. in certain cases. At the present time. 2010 will be Ps. the Group grants letters of credit to its customers that may give rise to collection and payment commitments at the time of the first drawdown. . unless they act as institutional investors. no drawdowns have been made.333. b) Leases The Group has entered into several operating leases for the buildings and business premises where some of its offices and branches are located. 2010 and 2009 is Ps. the series “O” shares of a multiple-type banking institution.270.22 and Ps. dissolution and liquidation. respectively. in terms of Article 19 of the Law Regulating Financial Groups. as well as the cancellation of any stock exchange registration. Such series “L” shares may also confer the right to accumulative preferred dividend. in conformity with the Law Regulating Financial Groups.982.974 registered series “O” shares with a par value of Ps. 2010 and 2009 consists of 3.14.207. and a higher dividend than the one paid to shares of ordinary capital stock.816 and Ps.121. 2010. since the Group’s financial information includes the effects of inflation recognized through December 31. which.133. the Group has a valuation allowance of Ps. The Group shall similarly be liable for their monetary obligations due to third parties.Letters of credit As part of its loan transactions. The nominal amount of paid-in capital at December 31. however. 2010 and 2009. 2007. Any individual or corporate entity may own. respectively. At December 31. At the date of the audit report on these financial statements. spin-off.546 and Ps. the Bank filed the related means of defense against the tax authority’s assessments with the Federal Court of Justice for Tax and Administrative Matters in due time and form.827422 Mexican pesos each. Financial Statements . with the prior authorization of the CNBV. on which. extending the right to vote only in matters involving a change in corporate purpose. 2010 and 2009 is Ps. as a result of a review conducted by the Tax Administration Service through its Financial Sector Audit office for the 2004.513.1. through one or various simultaneous or successive transactions. 2007. respectively. In no circumstances may the dividends paid on series “L” shares be less than those paid on the other series of shares. on which the available drawdowns aggregate Ps. The Financial Sector Audit Office of Tax Audit Department of the Tax Administration Service is reviewing the tax report of the Group for the year ended December 31.296 and Ps. Some of these letters of credit have been issued to related parties (Note 31). 2005 and 2006 tax years. as well as for parking areas and computer equipment. c) Loan commitments . provided that such transactions have been authorized by the Mexican Ministry of Finance. such review is still underway. 2010 and 2009. merger. even for those obligations incurred prior to the incorporation of the related subsidiaries into the Group.19. Commitments and contingencies a) Liability agreement In conformity with Article 28 of the Mexican Law Regulating Financial Groups. with approval of the CNBV. what the final outcome of these cases will be is unknown.Lines of credit The Group has granted lines of credit to its customers.187. b) Restrictions on shareholders’ equity Ownership of shares Foreign corporate entities that exercise any form of authority may not hold any interest in the capital stock. the Group and its subsidiaries signed a liability agreement whereby the Group accepts responsibility jointly and severally and without limitation for the performance of the obligations of its subsidiaries and for the losses derived from the performance of their own activities. Representative series “L” shares shall have limited voting rights. d) Review of tax reports At December 31.23.2. The book value of the shares at December 31.110 over the next five years. At December 31. 2010.758. Shareholders’ equity a) Capital stock The Group’s capital stock at December 31. lines of credit granted by the Group aggregate Ps. 2010 and 2009. may represent up to 40% of the Group’s ordinary capital stock. 83 24. For the years ended December 31. nor may Mexican financial entities. at those dates.180 for the above mentioned situation which is recognized under the caption Sundry creditors and other accounts payable (Note 21).
which will be subject to taxation. 2010 and 2009 is as follows: Reserve for repurchase of own shares Legal reserve Ps.098 Reserve for repurchase of own shares The reserve for repurchase of own shares was created on the basis of resolutions adopted at shareholders’ meetings.181 Ps. 2010 and 2009. The total dividend paid was Ps. 31.341 Ps. In conformity with the Income Tax Law. 2009.Dividend paid At a regular shareholders’ meeting held on April 30. shall be subject to taxation at the enacted rate at the time of such reduction. and was funded using a portion of the Group’s retained earnings. Legal reserve In conformity with the Mexican Corporations Act.Capital reserves 84 An analysis at December 31.917 1.974 common registered shares issued and outstanding.418 Ps.480 Grupo Financiero Inbursa . 3. except in the form of a stock dividend.333.974 common registered shares issued and outstanding. Capital reduction In the event of a capital reduction. as well as capital reductions. 2010.50 pesos per each of the 3. a cash dividend was declared at a rate of $ 0.333. 3.513. c) Restrictions on earnings The Income Tax Law establishes that dividends declared from income on which corporate income tax has already been paid shall not be subject to further taxation.513. they were not subject to tax withholdings. must be controlled in the so-called Restated contributed capital account (CUCA). all capital contributions and net stock premiums paid by the shareholders. a cash dividend was declared at a rate of $0. 30.833. the Group has the following (individual) tax balances: 2010 Restated contributed capital account (CUCA) Net taxed profits account (CUFIN) . Such reserve may not be distributed to shareholders during the life of the Group. payable by the Group. At a regular shareholders’ meeting held on April 30. 2. At December 31. therefore. any excess should be treated as a distributed profit. Such account must be restated for inflation from the time capital contributions are made to the time capital is reduced. 1. the reimbursement to shareholders in excess of the amount of the restated capital contributions. Any distribution of earnings in excess of the CUFIN account balance will be subject to taxation at the enacted income tax rate at the time dividends are paid.1.667.1. 2009 Ps. However.757 Ps. The total dividend paid was Ps. at the enacted income tax rate at that time. in accordance with the Income Tax Law. taxable income must be controlled in a so-called Net taxed profits account (CUFIN). Capital reductions paid out from the CUCA balance will be subject to no taxation in terms of the Income Tax Law.55 pesos per each of the 3. Since the aforementioned cash dividends were paid from the Group’s CUFIN account. the Group is required to appropriate at least 5% of the net income of each year to increase the legal reserve until it reaches 20% of capital stock issued and outstanding.
2009 8. 2010 a) Loan transactions 2009 Revenues Interest on loans (Note 27a) Exchange gains and UDIs (Note 27a) Commissions on the initial granting of loans (Note 27a) Commissions collected (Note 28) Other operating revenues Fair value valuation of hedges (Note 10) Expenses Exchange gains and UDIs (Note 27b) Provision for loan portfolio (Note 12d) Interest on deposits (Note 27b) Commissions paid Other operating expenses Amortization for loan portfolio valuation adjustment (Note 27a) Income from loan transactions Ps.25. A different classification is used to show the amounts presented from the one used in the preparation of the financial statements since operating and accounting records are combined. 13.124 Ps. Segment information Highlights of the results of operations of the principal operating segments of the most significant subsidiaries for the years ended December 31.062 8.068 3.242 12.513. 97 178 ( 8. 2.333.803 Ps.427 6.974 2. 13. 2009 8.391 239 1. 7.164 12.527 Ps.769 16.513. 217 4.099 94 55 3. Earnings per share and comprehensive income a) Earnings per share Earnings per share for the years ended December 31. 2010 and 2009 were determined as follows: 2010 Net income per statement of income Weighted average number of outstanding shares Earnings per share (Mexican pesos) b) Comprehensive income An analysis of the Group’s comprehensive income for the years ended December 31.4202 85 26. 7.527 Financial Statements . Ps.091 947 135) 8.974 Ps. 110 4.3407 Ps.903 Ps.437 577 520 15.902 Ps. 2010 and 2009 are shown below.849 Ps.637 Ps.622 118 238 727 3. 2010 and 2009 is as follows: 2010 Net income Unrealized gain (loss) on valuation of instruments available for sale Equity interest in other shareholders’ equity accounts of subsidiaries Comprehensive income Ps. 3.333. 53 16 876 922 .
51.783 2009 Ps. The Group focuses other specialized activities of subsidiaries in lines of businesses not subject to financial intermediation corresponding to the subsidiaries: Operadora Inbursa de Sociedades de Inversión and Afore Inbursa.3.46. 4. 2010 and 2009. 2010 and 2009 aggregated Ps. ( 220) Ps.066 1. 2010 and 2009 aggregated Ps. 86 Assets related to loan transactions at December 31.162.282 3. respectively.574 Ps. 2010 d) Reconciliation of figures Loan transactions Money market and capital market transactions Derivatives and foreign-currency transactions Commissions from management of retirement savings system resources (Note 28) Total operating revenues 1. respectively. ( 382) Ps.1. 3. respectively.45.159.198 2009 Net assets related to derivatives and foreign-currency transactions at December 31. the net cash flow invested in this segment aggregates Ps. 10.708 3.5. 442) 30) 779 895 4) 1.654. net cash outflows from this segment aggregates to (Ps.070 Ps.937 Ps.022 and Ps.543 86 283 3. For the year ended December 31. money market and capital market transactions carried out basically by the subsidiaries Banco Inbursa. 2010.291 Ps. Liabilities related to loan transactions at December 31.076 888 774 8.6.525 and Ps. which consolidate their financial information with that of the Group. ( 14) ( 447 271) . ( ( ( Ps.357) and Ps. 2010 b) Money market and capital market transactions Revenues Interest on investments (Note 27a) Premiums on repurchase agreements (Note 27a) Commissions collected (Note 28) Realized gain on securities (Note 29) Unrealized gain on valuation of investments in securities (Note 29) Expenses Premiums on repurchase agreements (Note 27b) Commissions paid Realized gain on securities (Note 29) Result of money market and capital market transactions 2. respectively.198 2009 The aforementioned segment information refers to credit.231 Ps.666. 2010 and 2009 aggregated Ps. 3.799 1. respectively. 2010 and 2009. 2010 c) Derivatives and foreign-currency transactions Realized (loss) gain on foreign currency transactions (Note 29) Unrealized (loss) gain on foreign currency transactions (Note 29) Realized gain (loss) on derivatives (Note 29) Unrealized gain (loss) on valuation of derivatives (Note 29) Other valuation results Ps.825) and Ps. For the year ended December 31.097.493 215 .871 1.133.912 Ps.147. respectively.527 Ps.294 1. the invested net cash flows in this segment aggregate (Ps.442 and Ps.9. 10. 4.143.996. Grupo Financiero Inbursa . 2010 and 2009 aggregated Ps.572 and Ps.957.574 220) 4. 5. 2. Inversora Bursátil and Sociedad Financiera Inbursa.871 Assets related to money market and capital market transactions at December 31. For the year ended December 31.410 1.045 1. respectively.477 and Ps. 3.720.053 8.637 ( 5.36.
463 Ps. 18 Ps. 44 Ps.134) 44 228) ( 184) .666) 819 63) ( 756 45) 600 555 9.035 Ps.910 793) 9.617 Ps. 13. 861 861 9.766) 18 10.There are other controlling entities. 687 Financial Statements . 21.040) 138) .045) Ps.003 494) ( 8.509 ( 1. claims and other Gross profit (loss) Ps. ( 10. whose financial information is not consolidated with that of the Group.220 6. as they refer to entities engaged in specialized activities in the insurance and bonding sector in the life.474 Ps.357 6.447 7. 1. 20. ( 3.782 87 Ps. 12.037 Ps. 963 Ps.( 1. 335 2009 Fianzas Guardiana Inbursa Seguros Inbursa Pensiones Inbursa Total companies regulated by the CNSF .410 8.372 7.788 156) ( 1.175 7. 345 Ps. 839 839 9.( 977) Ps.886 9. 919 Ps.034) 863 71) ( 792 15 432 447 9.061 Premiums written Premiums ceded Retained premiums Net increase in reserve for unearned premiums and bonds and bonds in-force Retained accrued premiums Net acquisition cost Net cost of losses. e) Segment information of subsidiaries regulated by the CNSF (not subject to consolidation) 2010 Fianzas Guardiana Inbursa Premiums written Premiums ceded Retained premiums Net increase in reserve for unearned premiums and bonds and bonds in-force Retained accrued premiums Net acquisition cost Net cost of losses. 201 Ps. 1.748 1.117 7.554 ( ( ( 100) ( 10.117 1.951 821) ( 9.667 Ps. claims and other Gross profit (loss) Seguros Inbursa Pensiones Inbursa Total companies regulated by the CNSF . property and casualty and health and pension lines.130 ( 1.044 ( ( 100) ( 3.
Ps.113 2009 Ps. 13. Ps.493 3. 6.005 437 110 182 193 9. 7. (1) An analysis of interest income by type of loan is as follows: 2010 Simple Unsecured Subject to value added tax Restructured Financial entities Other discounted loans Government entities Discounts Financial leases Home mortgage Chattel mortgage Consumer Ps.902 b) Interest expense 2010 Premiums on repurchase agreements (Note 8b) On notes with interest payable at maturity (PRLVs) (Note 17b) On checking account deposits (Note 17a) On bank loans (Note 18) Revaluation of foreign currency and UDIs Intereses por títulos de crédito emitidos (Nota 17c) On time deposits (Note 17b) Grupo Financiero Inbursa 2009 Ps.391 2009 2. .391 3.805 2.902 18.125 119 770 189 33 629 Ps. 3.271 16 1.799 2. ( Ps. 13.377 13.402 291 216 97 11.456 571 43 727) 53 13.388 646 411 1.184 689 719 1. Ps. Ps.310 2.543 5.829 1.27.225 Ps. Financial margin 88 An analysis of the financial margin presented in the statement of income for the years ended December 31.076 3. 2010 and 2009 is as follows: a) Interest income 2010 Loan portfolio (1) Commissions on the initial granting of loans Premiums on repurchase agreements (Note 8b) On investments in financial instruments On deposits with Banxico On financing granted to domestic and foreign banks Net valuation of hedging relationships (Note 10) Amortization for loan portfolio valuation adjustment (Note 10) Revaluation of foreign currency and UDIs Ps.281 696 68 520 239 21.859 Ps.910 189 823 729 487 395 258 189 184 20 1.
( 382) Ps.278 1. 1.410 Ps. 232 6 362 274 194 - 58 633 Ps.066 ( 447 1. 2010 and 2009 is as follows: 2010 Other income from buying and selling of securities On foreign currency transactions On securities On derivatives Result from valuation On foreign currency transactions On investments in securities On derivatives Other 2009 Ps.131 14) ( 1. 1.689 30.556 Ps. An analysis of these accounts at December 31.090 47.005.070 Ps. 2009 278.159. Commissions and fees collected An analysis of this caption at December 31.580 29. Intermediation income An analysis of intermediation income for the years ended December 31.635 Ps. 3. Ps. Ps.( 442) ( ( 1. 3.397 2.052 74. 1.396 2. 1.247 84.899 Ps.299 30.484 19. 2010 and 2009 is as follows: 2010 Management of retirement savings system resources Loan (portfolio) services Securities trading intermediation Commission for penalties Account management commissions Credit card purchases Other commissions 2009 89 Ps.053 271) .231 1. 253.021 23. ( 768 283) 779 54 30) 774 895 4) 1.437 876 423 .629.690 2.073 Financial Statements . Memoranda accounts The Group has memoranda accounts for the purpose of recording the Group’s rights and obligations with third parties.566.548 43. as well as securities.641 54. property received for safekeeping and property under mandate resulting from the Group’s normal operations.28. 2010 and 2009 is as follows: a) Transactions on behalf of others i) Customers’ securities received for safekeeping 2010 Money market securities Fixed-yield instruments Variable-yield instruments Shares of debt instrument mutual funds Shares of variable-yield mutual funds Securities listed on the International Securities Exchange Ps.
724 Grupo Financiero Inbursa .310 2. 52.36.481 330. 2009 604.353 152. 2009 Ps. 584. the balances of transactions in which the Group’s bank subsidiary acts as trustee are as follows: 2010 Trusts Administrative Investment Guarantee Transfer of title Mandates Ps.b) Proprietary transactions 90 i) Contingent assets and liabilities An analysis of the Group’s contingent asset and liability at December 31. 52.493 ii) Property held in trust or under mandate At December 31. 493.132 Ps.851 692 41 90 749 Ps. from activities performed in its capacity as trustee iii) Property held for safekeeping or under management An analysis of the balance of this account at December 31.422 5.083. 329. Ps. 412.144 2.641 84.460 Ps. 2010 and 2009.561 Ps.674 331.823 Ps. 2010 and 2009.180 2.391 741 Ps. the Group obtained income of Ps.39 and Ps. 52. respectively. 47.662 1. 2010 and 2009 is as follows: 2010 Securities held for safekeeping (1) Securities held in guarantee Notes subject to collection Other Ps.423 For the years ended December 31. 326.723 20 2.737 Ps. 2010 and 2009 is as follows: 2010 Group securities delivered for safekeeping Variable capital shares Domestic senior notes (CERBUR) Mexican Treasury Certificates (CETES) Promissory notes with interest payable at maturity (PRLV) Mexican government securities delivered in guarantee Mexican government development bonds (Bondes) 33 80 Ps.168 59 758.985 6 2009 Ps.619 41 90 411. 48.055 52.610 54 1.
• Lease agreement with Seguros Inbursa for the rental of the properties where the offices of the Group’s branches are located. 41.729 Ps.113.072.360 132. 17.360 3.938 584.633. • The Group has granted loans to its related parties.468.303 .845.452 97. • The Group has entered into administrative trust agreements with its related parties.498 . This agreement is for an indefinite term.418 247.068.829.738.348 1. based on existing market conditions at the date of the transactions.340.398 95.333.446 Ps.608 1.360 604.068.880 10.987 Ps. respectively.181 43. Related party transactions are conducted using market prices that are set.053 96.653.456. .453 .471. 1. which agrees to provide general administrative. Financial Statements .724 Fair value Ps. 394.935.043 2. This agreement is for an indefinite term. At December 31.414 1.135.668 878 16 927 261 80 864 .188 52.158 88.352.232.105 2. whereby the Group promotes and sells shares of Inbursa’s investment funds.506.500 37. 91 4.855 144. legal and accounting services.665.832. 22. • The Group carries out related-party transactions through the issuance of letters of credit. the balance of qualifying related party transactions aggregates to Ps.303 . among others.238. transactions with related parties subject to disclosure are those that represent more than 1% of net capital of the month prior to the date on which the financial information is prepared. • Stock distribution agreement entered into with Operadora Inbursa de Sociedades de Inversión.963.383.948 4. a) Agreements The most important agreements that the Group has entered into are as follows: • Open-ended brokerage intermediation agreements with each Group company for the safekeeping of securities through which Inversora Bursátil renders intermediation services for the trading and the safekeeping and management of financial instruments.778 37. this caption consists basically of American Depositary Receipts (ADRs) held for safekeeping.950 3. 2010 and 2009. 2010 and 2009.680 2.018 4.735.500 37.524.752.353 11. .982 11. Related Parties.188 52.453 1.678 12. This agreement is for an indefinite term.456.576.713 89. 4. 19 4.298.153.784 50.750 1. Related party balances and transactions In conformity with CNBV accounting criterion C-3. 31.054.681.916.160 829 147 56 711 3 39.208.030 10. An analysis of the ADRs held and their fair values at December 31.(1) At December 31. 2010 and 2009 is as follows: 2010 Issuer AMX TELMEX TLEVISA TELINT TELINT AMX TELMEX TELECOM GMODELO GCARSO GFINBUR TS GOMO SANLUIS SANLUIS Other Series L L CPO A L A A A1 C A1 O * * A CPO Securities 11.093 48.399 and Ps.730 1.524. • Administrative service agreement entered into with Seguros Inbursa.737 Securities 2009 Fair value 366.
336 692 677.293 Dividend paid Ps. 2010 and 2009 is as follows: Relationship Affiliates and associates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Loan portfolio Lease portfolio Debtors under repurchase agreements Accounts receivable Accounts payable Traditional deposits Loan commitments (letters of credit) Management and safekeeping of securities Transaction Derivative financial instruments (1) 2010 5. b) Balances and transactions with unconsolidated companies Under the CNBV accounting criteria. 1. respectively.410 and Ps. 1.151 22 . 1. balances and transactions of unconsolidated subsidiaries (insurance and bonding companies) have not been eliminated in the preparation of the Group’s consolidated financial statements.385 40 Interest income Premiums earned under repurchase agreements Commissions and fees collected Earnings on derivatives Commission for the distribution of shares Trust operations Ps. 2010 and 2009 and the related changes for the years then ended are described in Note 15. 1. 35 627 . 16. respectively.230.204 249 1.1. 1.876 Ps. 1. A summary of intercompany balances and transactions with such unconsolidated subsidiaries for the years ended December 31.127. 1. 4.11 and Ps.966 Ps. respectively.740. 38 Ps.146 and Ps.167 44 272 89 1.• The Group maintains demand and time deposits from related parties.000 2.924 Ps.364 874 251 25 2.115 5. 2010 and 2009 is as follows: Relationship Revenues: Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Disbursements: Affiliates Affiliates Affiliates Affiliates Affiliates Changes in capital: Direct shareholder/holder d) Balances An analysis of the Group’s principal balances due from/to related parties at December 31. iii) commission income aggregates Ps.831 and Ps.839 Ps.833 Ps.667 Interest expense Premiums paid under repurchase agreements Losses on derivatives Personnel services rendered Leases Ps. and iv) administrative service expenses aggregate Ps.248 81 81 290 196 17 135 61 341 166 15 Transaction 2010 2009 Ps. 1.140.426 Grupo Financiero Inbursa .821 Ps. 1. ii) accounts payable aggregate Ps. 693. 92 • The Group’s long-term equity investments at December 31.283. 3.252.049 1.1. Individual deposits do not exceed the disclosure limit established by the CNBV.115 2009 5. 1.259 Ps. respectively. c) Transactions An analysis of the Group’s transactions with related parties at December 31.591 Ps. 2010 and 2009 is as follows: i) accounts receivable aggregate Ps.934 Ps.
the CNBV issued provisions of general application for credit institutions (Circular Única).288 Ps. legal and reporting levels related to transactions in excess of the maximum risk tolerance levels approved by the Risk Management Committee.798 1.078 176.. 84 and 75 swaps with related parties with a notional amount of Ps.800 Ps.A.624 Financial Statements . In conformity with CNBV regulations. the principal subsidiary of the Group. respectively. by means of notes accompanying their financial statements. together with the Risk Analysis area and operating areas. while the Group has. Additionally.26. methodologies and other risk management measures adopted. the Bank has a contingency plan to offset weaknesses detected at the operational. 12. 2011. controls and monitors all of its quantifiable and unquantifiable operating risks.937 and Ps. 11. 93 32.022 873 172.992 Ps. the Group has entered into forwards and cash-flow swaps with its related parties. 2005. 11.At December 31. 2010 and 2009. the Group has contracted. credit institutions are required to disclose. To this end. any information regarding policies. The Bank’s management has policy and procedures manuals that were prepared following CNBV and Banxico guidelines for reducing the risks to which the Bank is exposed. 11. 11. 2010 and 2009. The Bank’s Risk Management Committee systematically analyzes the information it receives. On December 2. Institución de Banca Múltiple (the Bank).804 9.611 and Ps. At December 31.266 917 170. quarterly variances in the Bank’s financial income are as follows: Assets Investments in securities Quarterly interest Q1 Q2 Q3 Q4 Annual average Ps.929 165 348 545 774 458 Loan portfolio Quarterly interest Change in economic value 165. 23 and 59 forwards with related parties with a notional amount of Ps. For the year ended December 31.244. the Bank practices comprehensive risk management. 2010. procedures. respectively.595 3.718. it relies on the services provided by the Risk Analysis area.24. as well as information regarding the potential losses related to each type of risk in the different markets in which they operate.627 171.29.45. respectively. the Comprehensive Risk Management Unit and the Risk Management Committee.637 Ps.115 1.979 6.357 13.434 8. Risk management (unaudited information) This information refers to Banco Inbursa.374 3. The Bank›s internal audit area executes its audit using the applicable accounting criteria and submitted the results of its latest audit to the Board of Directors at a meeting held on January 24. respectively. Such provisions establish that the internal audit area must perform a comprehensive risk management audit at least once a year or at year-end. S. measures. a) Environment As part of its efforts for increased corporate governance. through which the Bank also identifies.
An analysis of market risk at December 31.Ps.440 Cost rate 4.164) Ps.071) Ps. and based on the risk factor values of the last 252 days. 2010 (1) Daily VaR with 95% reliability A monthly summary of the Bank’s market risk is as follows: Date 12/31/2009 31/01/2010 28/02/2010 31/03/2010 30/04/2010 31/05/2010 30/06/2010 31/07/2010 31/08/2010 30/09/2010 31/10/2010 30/11/2010 31/12/2010 Average % VaR = VaR $ ( ( ( ( ( ( ( ( ( ( ( ( ( $ ( 418) 182) 74) 120) 98) 242) 98) 270) 224) 79) 39) 81) 452) 183) The Bank measured these market risks using a VaR model for the total valuation in a target investment term of one day with a reliability level of 95%.00 8.61 8. ( 798 6.322 7. the market risk is computed for money market. dollars) Cross currency swaps Securities held Total Term 2 3. 575 10 832 14.48 Ps. 289 Ps.816 134 Market rate Market value Unrealized gain (loss) Value at risk (1) .388 4. At present. 277 6. the Bank carries out a hypothetical test of the reliability level of the measuring system.836 Ps. the Bank has computational tools at its disposal to calculate Value at Risk (VaR) and to perform sensitivity analyses and stress testing. 796 142 64 3 25 127 177 379 2 777 4. This consists of a chi square (Kupiec) test of the number of times that the actual loss observed exceeds the estimated risk level.019) ( 1. 38. Grupo Financiero Inbursa . international bond and variable-yield and derivative instrument portfolios. 2010 is as follows: Instrument Money market International bonds Variable-yield shares Futures and forwards Swaps at risk (Mexican pesos) Swaps (U.208) ( 4. 452) Basic capital at Sept. Ps ( 575 10 35 649 Ps.612 5.b) Market risk 94 In order to measure and evaluate the risks assumed in conducting its financial transactions.064 ( 20.44 Cost value Ps.S. 30. To prove statistically that the market risk measuring model is giving reliable results.719 ( 431) ( 478) ( 478) Ps. 5.
44% 3. including costs.34% 0.The most important risk position for the Bank is in derivative transactions.This information includes the market risk of positions.05% 0.91% Ps. as well as the value at risk and their new mark-to-market values. In other words.88% 0. Amount 8. The model is based on the assumption that the distribution of variances in risk factors is normal.44% 1. the Bank monitors its foreign currency liquidity risk in accordance with Banxico regimen of investment and admission of foreign currency denominated liabilities.38% Ps.232 2009 % Coefficient 6. the Bank determines a factor that represents the level of the operation’s flow resistance to cover the interest generated by the liabilities.158 6. d) Credit risk The Bank computes loan portfolio risks by applying quarterly analyses of credit risks using its own risk model.922 723 344 713 3. c) Liquidity risk In order to monitor liquidity. which assumes that the deterioration of credit quality and of each borrower over time depends both on quantifiable economic factors.603 349 358 1. as well as qualitative factors.84% 0. 390 2. in addition to tests under historical extreme conditions of up to four standard variances on a 60-day investment horizon. respectively.72% 2.069 4.247 3.018 682 245 2. based on its interest coverage. carried out.573 367 155 2.39% 0. For its stress tests.21% 2.238 955 % Coefficient 0. 2. To validate this assumption.631 312 1. The Bank also measures the adverse margin by considering the differential between the buying and selling prices of its financial assets and liabilities. “back testing” is 95 The measurement of market risk is conducted via stress tests consisting of sensitivity analyses of 100bps and 500bps.62% 0.31% 0.81% 2.58% 0.28% 0. Under the new risk factor stress conditions.69% 0.45% 0.65% Ps. Furthermore.28% 1.30% 0. consisting of currency and interest rate futures and Mexican peso and U.29% 3.385 1. the unrealized gain (loss) generated and the Value at Risk in one day with a reliability level of 95%. considering the Bank’s financial assets and liabilities.56% 5.06% 4.14% 2.S. 994 The liquidity model considers the liquidity quality of portfolio assets. the risk management area computes liquidity gaps. as well as loans granted. dollar denominated swaPs. it is reasonable to believe the deterioration of the operating margin firmly indicates that these factors together have worked against the borrower.489 4. as well as the asset/liability gap and their status within each term.791 6.39% 0. the valuations of the portfolios are determined. 2010 Amount January February March April May June July August September October November December Average Ps. This simulates the effects of adverse transactions on the portfolio on the day of the computation. The total effect of these factors may be observed in the development of the operating margin generated by the borrower’s performance. Financial Statements .
not only for each borrower or risk group. 173.161 3 1.69% 16. Performing portfolio Past-due portfolio Times of Allowance allowance/pastdue portfolio 0. 127.743 Ps.426 Ps.186 7.692 USD 46.119 2 Ps.160 376 AA AA AA AA Ps.428 0.Loan process The Bank’s loan process activities related to the evaluation and analysis for the granting of loans and the control and recovery of its loan portfolio are described below: Grupo Financiero Inbursa .648 3.S.776 Ps.543 2. the Bank acts on its own behalf with intermediaries or financial participants authorized by Banxico.302 1.579 Ps. . on a quarterly basis.S.49% 47.536 1. but also by economic activity.536 Additionally. as well as with other participants who must guarantee the obligations contained in the contracts signed with the participating parties. 127. 2010 is as follows: Total Net exposure Expected loss in Mexican pesos Grading of loan portfolio Mexican pesos U.305 Ps. concentration of risk is determined. 2. including costs. dollars UDIs Ps.70% Currency Mexican pesos U.27% 10. 3. 171. the Loan Department monitors the quality of the loan portfolio based on this grading and conducts an analysis by segment of the main sectors of the Mexican economy. 11.103 1.Stress tests may be carried out by modifying the variables that affect the operating income and/or the financial expense derived from the liabilities.530 1.273 3.284 2 % allowance/ performing portfolio 8.154 1.376 The average values of credit risk exposure are as follows: Expected loss at this date 03/31/2008 06/30/2008 09/30/2008 12/31/2008 03/31/2009 06/30/2009 09/30/2009 12/31/2009 03/31/2010 06/30/2010 09/30/2010 12/31/2010 Total Ps. 96 The value at risk and grading of the loan portfolio by currency at December 31.090 44. In its future and forward contracts. 2. 18.596 1.208 0. dollars UDI 3 1.081 The expected loss considers the exposure net of guarantees and the probability of default as computed by the proprietary model.224 1.048 1.517 2. Together with the quarterly credit monitoring analyses.934 1.
guarantees. the risk assumed in currency derivative transactions refers to Mexican rates since U. the Bank evaluates and follows up on loans by means of regulatory reports issued to meet the requirements of the regulatory authorities that oversee the Bank. and reviews the borrowers’ credit history based on reports obtained from credit bureaus. iii) to identify and take advantage of the current derivative market conditions. The transactions conducted involve a counterparty risk. Therefore.0 Maturity of more than one year (*) 2. so as to promptly identify possible problems in the performing loan portfolio. With respect to the evaluations for the granting of consumer loans.Determination of concentration of risk The policies and procedures used to determine risk concentrations in the loan portfolio are summarized below: • The Bank requires borrowers with authorized credit lines of at least 30 million UDIs to deliver information following specific guidelines for the Bank to later determine any common risks. and iv) to protect itself against risks derived from unusual variances of underlying (foreign currencies.and medium-term active participation in those markets. Bank policy is to identify and classify the troubled loan portfolio based on the risk grade resulting from the loan portfolio grading. the Bank performs parametric analyses and verifies the borrowers’ credit history based on reports obtained from credit bureaus. . For commercial loans: i) the authorized bodies (Credit Committee) establish the basic conditions of the loans with respect to the amounts.S.. computed by Banxico. among others. interest rate and guarantees. 88.Analysis of credits The control and analysis of loans starts from the time information is received about the borrower to the time the loan is repaid in full. the areas involved in the implementation of the required corrective measures should be informed.) to which the Bank is exposed.0 2. Generally. notarizing. including loan restructuring negotiations and court-action for collection. commissions. as well as internal reports with their respective monthly updates. In the case of consumer. as follows: Maturity of less than one year (*) Nominal rate Actual rate Synthetic derivatives Capital markets (1) (*) Times net capital for the immediately preceding quarter. ii) the loan operations area verifies that the approved loans have been properly documented. Information on common risks is included in a customer grouping process for measuring and updating loan portfolio risks. This portfolio also includes other specific loans deemed troubled by the loan analysis area. interest rates. The troubled loan portfolio includes “D” and “E” risk-grade loans. etc. of Article 75 of the Mexican Credit Institutions Act. the Bank performs a detailed analysis of the financial position and qualitative aspects of the applicant. dollar futures are positioned as a credit portfolio or other assets. the retail loan analysis area is responsible for authorizing. in response to their needs. e) Risk policies for derivatives When entering into agreements involving financial instruments (derivatives).5 97 Financial Statements . safeguarding and following up on the documentation of these kinds of loans.5 4.10 million. shares. among others. • The loan analysis area periodically reports the amount of the lines authorized by the Loan Committee to the operations area to provide for the adequate compliance with risk concentration limits. interest rates. 2. terms. under specific limits related to the amount. term. . (1) Limit defined in the third paragraph of clause III. the Credit Committee grants the retail loan analysis area the power to approve or deny loans of up to Ps. regardless of whether they form part of the performing or past-due portfolio. The Bank has established different procedures for the recovery of loans.5 2. The policies observed by the Bank establish that risk positions in securities and financial derivatives may not be assumed by operators since risk-taking is decided on exclusively by senior management by means of collective bodies. iii) all loan drawdowns must be approved by the loan operations area. as well as those limits established by the regulatory authorities. In the case of corporate (commercial) loans.Identification of troubled loan portfolio The Bank performs a monthly analysis of the economic environment in which its borrowers operate. • If loan transactions exceed the limits established by the Bank due to circumstances not related with the granting of loans. • The loan operations area verifies that any drawdown made on the authorized lines of credit does not exceed the maximum loan limits established by the Bank on a quarterly basis. passing through a number of filters in the different areas of the Bank. ii) to provide its customers with market transactions of derivative products. The Bank has also created specific policies to grant loans based on the product or type of loan being applied for. The Risk Management Committee defined the positions to which the Bank must adhere. the Bank’s general purposes include the following: i) the short. home mortgage and other loans granted to small and medium-sized companies. • The loan operations area is responsible for informing the CNBV when common risk limits have been exceeded. Each month.0 2.
The financial assessor together with the documentation traffic area is responsible for maintaining all customer files with the correct relevant legal documents and agreements. in addition to matters related to recommendations made to customers with regard to entering into derivative contracts. • Give immediate written notice to the other party when the Bank knows that it is in one of the circumstances that are cause for early termination established in the standard agreement. regulations and provisions contemplated in the agreement. as well as the use of firewalls. as well as the justification for acquiring the hedge. the Bank must comply with circular 4/2006.. including the treatment. Derivates are recorded at the contracted price and are valued using the applicable accounting criteria based on their classification as either for traiding or hedging. The Bank is also subject to the provisions established by the CNBV in connection with derivative transactions. the Bank documents the hedging relationships to show their efficiency based on the considerations established in the CNBV accounting criteria. 2010. Whenever it is determined that a derivative is no longer a highly effective hedge. • Provide the other party with any other document agreed upon in the contract exhibits and confirmation of transactions. The Comprehensive Risk Management Unit should inform the Risk Management Committee of the Bank’s legal risks on a monthly basis so as to follow up such risks. Hedges are designated at the time the derivative is contracted or at a later date. The Bank’s legal auditor must perform a legal audit on the Bank at least once per year. including the formalization of guarantees so as to avoid vulnerabilities in the Bank’s transactions. . 4) The manner in which the effectiveness of the hedge is assessed initially (prospectively) and subsequently (retrospectively) and then offset the exposure to changes in the fair value of the hedged item attributed to the hedged risks.Counterparty obligations Derivative agreements that are not entered into in recognized markets are documented by means of a standard agreement establishing the following obligations for the Bank and its counterparties: • Deliver the accounting and legal information agreed upon by the parties in the contract exhibits and confirmation of transactions. 2) The specific risk or risks to be hedged. the security of on-line information and system access restrictions. • Comply with all applicable laws. Such regulations also establish rules for derivative transactions and require credit institutions to obtain an annual communiqué from their audit committees to certify compliance with the provisions issued by Banxico in this regard. provided that the instrument qualifies as a hedge and meets the conditions for formal documentation as such established in the accounting standards. which includes the reestablishment of critical functions in the Bank’s systems in case of emergency. The Bank’s hedging documentation includes the following: 1) The risk management strategy and objective. documentation and recording of derivatives and their risks. 3) Identification of the primary position being hedged and the derivative financial instrument used for such.Regulations In conformity with the regulations issued by Banxico related to derivative transactions. Highlights of the accounting treatment used for each agreement are as follows: f) Technological risk The Bank’s corporate strategy with respect to offsetting technological risks rests in its contingency and business continuity plan. Grupo Financiero Inbursa . g) Legal risk The Bank’s specific policy regarding legal risks is as follows: It is the responsibility of the Comprehensive Risk Management Unit to quantify estimates of the legal risks the Bank faces.Documentation of hedging relationships 98 With regard to transactions with derivative financial instruments for hedging purposes. The effectiveness of the Bank’s hedges is evaluated monthly. • Maintain in force any internal or government authorizations necessary to fulfill the relevant contractual obligations. When a derivative is designated as a hedge subsequent to the instrument contracting date. hedge accounting is applied prospectively. the Bank prospectively ceases to apply hedge accounting to the derivative. At December 31. The Bank’s legal area is responsible for monitoring the adequate instrumentation of agreements and contracts. 5) Treatment of the total gain or loss of the hedge in determining effectiveness. the Group has no derivatives for hedging purposes. .
2010 is less than one million of Mexican pesos. interest. Financial Statements . 99 L = ƒL x Sl Whereby: ƒL= No. Computation of probability of unfavorable rulings. h) Operating risk Regarding non-discretional risks. 2010.The proposed model for the quantification of legal risks is based on the frequency of unfavorable events and the severity of losses so as to estimate the potential risk in this area. Since the Bank currently has no internal models for the valuation of operating risks. legal expenses. of cases with unfavorable rulings / No. of cases in litigation Sl= Average severity of loss (cost.) derived from unfavorable rulings L= Expected loss from unfavorable rulings The amount of the Bank’s expected loss from unfavorable rulings at December 31. paragraph c) of Article 88 of the Provisions of General Application for Credit Institutions. etc. the tolerance level for each risk identified is set at 20% of the Bank’s total net income. At December 31.13. in conformity with Clause II. the montly average of the penalties and charges account for the last 36 months is Ps. the probability of materialization of such risks is computed based on the simple arithmetic average of penalties and charges accounts for the last 36 months.
903 27.739 568 191.406 8.392 613 765 5.512 220 Debtors under security repurchase agreements (debit balance) Derivatives (Note 9) For trading For hedging purposes 9.872 10.221 Ps.528 .123 1.563 896 13.582 5.865 211 11. 57 15.515) ( 157.160 6.665 1. 3.565 3.Banco Inbursa. Institución de Banca Múltiple Grupo Financiero Inbursa and Subsidiaries Consolidated Balance Sheets As of December 31.616 18. 146 104 3.101 20.190 129.631 ( $ 3.151 8.241 2.887 Valuation adjustment for financial asset hedges (Note 10) Performing loan portfolio Commercial loans Business or commercial activity Financial entities Government entities Consumer loans Home mortgage loans Total performing loan portfolio Past-due loan portfolio Commercial loans Business or commercial activity Financial entities Consumer loans Home mortgage loans Total past-due loan portfolio Total loan portfolio (Note 11) Preventive provision for credit risks (Note 12) Total loan portfolio (Net) Other accounts receivable (Net) (Note 13) Foreclosed and repossessed property (Net) Property furniture and equipment (Net) (Note 14) Long term equity investments (Note 15) Other assets.303 9.900 244 106 4.331 Ps.881 15.200 12.821 563 739 6.216 2. deferred charges and intangibles (Net) (Note 16) Total assets Grupo Financiero Inbursa 126.515 2.672 569 7. 2009 19. 9.366) 142.250 157.123 153.767 1.122 598 235.722 1.176 . 2010 and 2009 (In millions of Mexican pesos) (Notes 1 and 2) 100 2010 Assets Cash and cash equivalents (Note 5) Margin accounts (Note 6) Investments in securities (Note 7) Securities for trading Securities available for sale Securities held-to-maturity Ps.066 7. S.196 172.545 2.A.216 .426 175.
2009 101 48.480 6.077 191.685 25.528 Financial Statements .572 239 3.498 1.203 15.609 Interbank and other borrowings (Note 18) Demand deposits Short-term Long-term 124.113 187.102 4.272 7.772 26 148. 5.915 .904 80 1.737 Ps.807 69.669 141.962 10.895 1.813 43. 51.545 69 265 4.508 Other accounts payable Taxes on profits payable(Note 19) Creditors on settlement of transactions (Nota 5c) Creditor on margin accounts(Note 20) Sundry creditors and other accounts payable (Note 21) 342 24.427 235.579 7.308 773 22.290 2.743 1.405 76.685 25.865 1.689 166 265 4.396 74.2010 Liabilities Traditional deposits (Note 17a) Demand deposits Time deposits (Note 17b) General public Money market Debt securities issued (Note 17 c) Ps.579 7.552 3.451 Deferred income tax (Net) (Note 22) Deferred credits and early settlement Total liabilities Commitments and contingencies (Note 23) Shareholders’ equity (Note 24): Contributed capital Capital stock Stock premium Earned capital Capital reserves Retained earnings Unrealized gain (loss) on valuation of instruments available for sale Unapplied result from holding non-monetary assets Net income Non-controlling interest Total shareholders’ equity Total liabilities and shareholders’ equity $ 17.025 849 5.993 1.163 47.331 Ps.915 5.874 8 6.497 Derivatives (Note 9) For trading For hedging purposes 8.956 9.217 1.264 5.365 - 4.960 73.655 .816 638 17. 8.548 28.264 5. 17.
101 and 102 of the Mexican Credit Institutions Act.816 Ps. The accompanying notes are an integral part of these financial statements. 102 Memoranda accounts Loan commitments (Note 23b) Property held in trust or under mandate (Note 30a) Property held for safekeeping or under management (Note 30b) Other memoranda accounts 2010 2009 $ 2.132 987.349 Collateral securities received and sold or delivered in guaranty by 12.082. which is of general application and compulsory observance. 1.673 Collateral securities received by the entity (Note 8c) 18. 2010 and 2009 is Ps.127 331. Grupo Financiero Inbursa .954.450 The Bank’s historical capital stock at December 31.598 844. and such balance sheets reflect the Bank’s transactions at the dates indicated.129 the entity (Note 8a) $ 2.423 757. Such transactions were conducted and valued in conformity with sound bank practices and applicable legal and administrative requirements.515. These consolidated balance sheets were approved by the Bank’s Board of Directors. 1.344.862 9. applied on a consistent basis.969 1.016 9.626 Ps.982 412.8. These consolidated balance sheets were prepared in conformity with the Accounting Criteria for Credit Institutions established by the Mexican National Banking and Securities Commission based on the requirements of Articles 99.
870 256 230 84 737 172 ( 507) 5.365 Ps.117 4.211 3. and such statements of income reflect all of the income and expenses earned and incurred in the Bank’s transactions during the periods indicated. 101 and 102 of the Mexican Credit Institutions Act.957 2.062 3.493 4. 4. Institución de Banca Múltiple Grupo Financiero Inbursa and Subsidiaries Consolidated Statements of Income Years ended December 31. 15.363 1. 4.666 3.745 684 514 4. Such transactions were conducted and valued in conformity with sound bank practices and applicable legal and administrative requirements.308 Ps.752 associates 348 84 Equity interest in net income of unconsolidated subsidiaries and associates (Note 15) Net income Non-controlling interest Net majority income The accompanying notes are an integral part of these financial statements.405 5.453 7.143 1.611 Income before equity interest in net income of unconsolidated subsidiaries and 4. 2010 and 2009 (In millions of Mexican pesos) (Notes 1 and 2) 103 2010 Interest income Interest expense Financial margin (Note 27) Preventive provision for credit risks (Note 12) Financial margin adjusted by credit risks Commissions and fees collected (Note 28) Commissions and fees paid Intermediation income (loss) (Note 29) Other operating income Total operating revenues (Note 26) Administrative and promotional expenses Operating income Other income Other expenses Income before taxes on profits Taxes on profits payable (Note 19) Deferred taxes on profits (Note 22) 2009 Ps. S.Banco Inbursa.196 1.922 4. 17. applied on a consistent basis. which is of general application and compulsory observance. 4.327 10.063 80 740 871 1.257 5.039 9. These consolidated statements of income were approved by the Bank’s Board of Directors.170 8.145 4.816 Financial Statements .434 8.A.035 141 124 1.019 4.116 6. These consolidated statements of income were prepared in conformity with the Accounting Criteria for Credit Institutions established by the Mexican National Banking and Securities Commission based on the requirements of Articles 99.127 3.836 ( 185) ( 20) Ps.326 8.288 6.
579 Ps.685 The accompanying notes are an integral part of these financial statements. 7. 101 and 102 of the Mexican Credit Institutions Act. Grupo Financiero Inbursa . 2 and 24) 104 Contributed capital Capital stock Stock premium Balance at December 31.579 7.685 Ps.Banco Inbursa. S. 2010 Ps. 2010 and 2009 (In millions of Mexican pesos) (Notes 1. and such statements of changes in shareholders’ equity reflect the all of the changes in shareholders’ equity accounts resulting from the Bank’s transactions during the periods indicated. 2010 Total Recognition of comprehensive income (Note 26b) Comprehensive income Unrealized gain on valuation of instruments available for sale Net income Total Balance at December 31.A.685 17. These consolidated statements of changes in shareholders’ equity were prepared in conformity with the Accounting Criteria for Credit Institutions established by the Mexican National Banking and Securities Commission based on the requirements of Articles 99. 7. Such transactions were conducted and valued in conformity with sound bank practices and applicable legal and administrative requirements. Institución de Banca Múltiple Grupo Financiero Inbursa and Subsidiaries Consolidated Statements of Changes in Shareholders’ Equity For the years ended December 31. applied on a consistent basis. 2009 Charges to retained earnings and other movements of subsidiaries Resolutions adopted by shareholders Appropriation of net income of 2007 to retained earnings and increase in capital reserves Payment of dividends as per resolution adopted at ordinary shareholders’ meeting held on April 29.579 Ps. which is of general application and compulsory observance. These consolidated statements of changes in shareholders’ equity were approved by the Bank’s Board of Directors. 17. 2008 Charges to retained earnings and other movements of subsidiaries Resolutions adopted by shareholders Appropriation of net income of 2007 to retained earnings and increase in capital reserves Total Recognition of comprehensive income (Note 26b) Comprehensive income Unrealized gain on valuation of instruments available for sale Net income Total Minority interest Balance at December 31. 17.
816) ( 4.689 Ps.593) ( 1.590 47.308 4. ( 20) ( 1. 97 97 166 Ps.593) ( 20) - 159 1.816 4.077 50) 482 4.480 6.434 5.313 Ps.131 Ps.593 Ps.545 947 947 69 265 4. 5.493 4.321 Ps. ( 878) Ps.783 1 43. 617 Ps. 10. 265 Ps.334 ( 190) 482 4. 97 4. 265 Ps.816) ( ( 190) 190) Ps.434 159 1.308 Ps. 4.427 Financial Statements .836 5. 105 Earned capital Unrealized (loss) gain on Result from Total Retained valuation of holding nonCapital reserves Net income Minority interest shareholders’ earnings instruments monetary equity available fo assets sale 5.962 Ps. 5. 1. 185 185 773 Ps.816 4.816 ( 20 20 1 638 50) ( 947 4.308 4.144 ( 4. 37.
623) 3.676 200) 8.A.604 154 ( 1. These consolidated statements of cash flows were approved by the Bank’s Board of Directors.836 4. ( ( ( ( ( ( ( ( ( 4.144 22.613 837) 3.703) ( 50 ( 18.865 19.966) 16.697) 5.443 ( 2.931) 2.159) 3.978 2.787) 584) 12.660) ( 5. furniture and equipment Payments for the acquisition of other long-term equity investments Payments for the acquisition of intangibles Net cash flow provided by investing activities Financing activities Non-controlling interest ( ( ( ( 95) ( 35) ( 92) ( 222) ( 243) 222) 222) 687) Ps. Grupo Financiero Inbursa . and such statements of cash flows reflect all of the cash flows received and disbursed in connection with the Bank’s transactions during the periods indicated.611 84) 10. 101 and 102 of the Mexican Credit Institutions Act.070) 4.143 348) ( 9. S.249) ( ( 30) 30) 3. applied on a consistent basis. which is of general application and compulsory observance.669 1. Ps. Such transactions were conducted and valued in conformity with sound bank practices and applicable legal and administrative requirements.429) 1.701 7.544) ( 18. These consolidated statements of cash flows were prepared in conformity with the Accounting Criteria for Credit Institutions established by the Mexican National Banking and Securities Commission based on the requirements of Articles 99. Institución de Banca Múltiple Grupo Financiero Inbursa and Subsidiaries Consolidated Statements of Cash Flows Period from January 1 through December 31.455) 16.062 145 106 1.125 15.620) 22. 6.356 ( 15.363 ( 23.865 Adjustments to cash flows due to exchange rate and inflation rate fluctuations Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year The accompanying notes are an integral part of these financial statements.493 Ps.117 183 16 1.Banco Inbursa. 4. 2010 and 2009 (In millions of Mexican pesos) (Notes 1 and 2) 106 2010 Net income Adjustment of items not affecting cash flow: Preventive provision for credit risks (Note 12) Depreciation and amortization Provisions Current year and deferred taxes on profits Equity interest in net income of unconsolidated subsidiaries and associates Operating activities Margin accounts Investments in securities Debtors under security repurchase agreements Derivatives (asset) Loan portfolio Foreclosed and repossessed assets Other operating assets Traditional deposits Settlement of transactions Interbank and other borrowings Derivatives (liability) Other operating liabilities Instruments for hedging (items hedged with operating activities) Net cash flow provided by operating activities Investing activities Payments for the acquisition of property.285 ( 15.221 Ps.996) ( 2009 4.
143 3. 3.120 1.327 600 59 5 13) 2.069 24.926 336 1 6.315 2.471 263 1.Seguros Inbursa.501 6 92 64 347 84) 7.250 2.158 1.091 123 12.964 5.317 2.264 ( Total assets v $ 43. 21.628 94 21..223 226 1. S.502 292 1.A.380 196 10. 4.407 130 642 239 66) 73 1. 14. 18. Grupo Financiero Inbursa and Subsidiaries Consolidated Balance Sheets (Notes 1. 22 and 23) (Amounts in millions of Mexican pesos) 107 December 31 2010 Assets Investments (Note 5): Securities: Mexican government Private enterprises: Fixed-yield Variable-yield Foreign Net unrealized gain on valuation Interest debtors Loans: On policies Secured (Note 7) Unsecured (Note 7) Overdue portfolio Interest debtors Allowance for write-offs Real-estate companies: Property Net valuation Depreciation Investments for labor obligations at retirement (Note 12): Total investments Cash and cash equivalents (Note 9): Cash and banks Debtors: Premiums Agents and adjusters Notes receivable Employee loans Other Allowance for write-offs Reinsurers and rebonders (Note 6): Insurance and bonding companies Retained deposits Reinsurers’ share of unpaid claims Reinsurers’ share of unearned premiums Other shares Total current assets Other assets: Furniture and equipment.761 43 19.173 1.998 245 1.137 26.116 $ 2.002 131) 1. 19.009 $ 45.515 20.273 18 ( 4.517 15.003 109) 1.163 ( ( 11. net Sundry Unamortized expenses (Note 10) Amortization (Note 10) Intangible assets (Note 10) Total other assets 2009 $ ( ( ( ( 12.471 2.835 Financial Statements .410 34) 7.018 1. 2.278 920 55 6 20) 2.238 2.472 118 865 235 75) 121 1.937 ( 702 1 7.515 6 78 76 349 87) 4.
839 1 5.227 160 1.608 40.835 Memoranda Accounts (Note 17): 2010 Deposit securities Managed funds Liabilities under bonds in force Tax loss carryforward Memoranda accounts $ 3.165 9.751 7 15.122 1. 108 December 31 2010 Liabilities Technical reserves Unearned premiums (Notes 4 and 5): Life Accident and health Property and casualty Bonds in force Contractual obligations: Losses and maturities (Note 11) Losses incurred but not reported (Note 11) Policy dividends Managed insurance funds Deposit premiums Prevision: Prevision Catastrophic risks Contingencies Total technical reserves Reserves for labor obligations at retirement (Note 12): Creditors: Agents and adjusters Funds in custody for losses Sundry Reinsurers and rebonders (Note 6) Insurance and bonding companies Retained deposits Other liabilities: Provision for employee profit sharing Tax provision (Note 15) Other liabilities Deferred credits (Note 15) Total liabilities Shareholders’ equity (Note 16): Capital stock Capital not paid-in Paid-in capital stock Reserves: Legal reserve Other reserves Unrealized loss on valuation of investments Retained earnings (accumulated deficit) Net income for the year Deficit from restatement of shareholders’ equity Equity holders of the parent Non-controlling interest Total shareholders’ equity Total liabilities and shareholders’ equity 2009 $ 7.729 $ 12.313 2 5.067 514 2.401 502 286 626 24 10.990 397 294 670 101 11.714 2.386 1.094 840 5.015 3 6.067 625 3.444 36.227 160 1.059 $ 10.775 1.299 3 6.881 $ 7.015 318 7 268 593 4.408 5.408 45.148 2.150 712 7.107 370 5.302 43.620 9.398 2.436 53 205 788 1.224 7 13.593 1.316 31.083 11 5.077 331 10 328 669 1.427 ( $ 1.009 ( ( $ 1.056 130) 360 951 370 6.132 Grupo Financiero Inbursa .984 2009 $ 2.707 80 258 1.416 1.636 1.650 104) 196) 1.435 1 4.881 1.452 1 6.114 11 5.019 30.
475 ( 6.442 124) 6.543 66 1.107 1.686 702 1 774 266) 1.884 1. 3.318 1.614 10.142 $ 21. 21.315 918 901 ( ( 315) 1. 19.517 426 16 1. 2.658 34) 6. 14..129 871 344 7 ( 466) 299 766 1.666 10.183 282) ( 626 424 673 118 16 58) 1. 18.799 1. 4.107 Financial Statements 371 7 951 951 $ $ .819 $ 13. claims and other contractual obligations: Claims and other contractual obligations (Note 6) Recovered claims from non-proportional reinsurance (Note 6) Technical profit Net increase in other technical reserves (Note 4) Reserve for catastrophic risks Income from similar and related operations Gross profit Net operating expenses: Administrative and operating expenses Employee compensations and fringe benefits Depreciation and amortization Operating loss Comprehensive financing income: On investments Sale of investments On valuation of investments Interest on premiums Other Exchange loss.108 10.A. 22 and 23) (Amounts in millions of Mexican pesos) 109 Year ended December 31 2010 Premiums: Written (Note 4) Ceded Retained Net increase in reserve for unearned premiums and bonds in force Retained earned premiums Net acquisition cost: Agent commissions Additional agent compensations Commissions on reinsurance and rebonding accepted Commissions on reinsurance ceded Excess of loss coverage Other Net cost of losses.343 569) 947 6 912 124 11 116) 1. Grupo Financiero Inbursa and Subsidiaries Consolidated Statements of Income (Notes 1.624 1.431 67 1.616 3. net Income before provision for income tax and equity interest in net income of subsidiaries Provision for taxes on profits (Note 15) Equity interest in net income of subsidiaries Net income Equity holders of the parent Non-controlling interest ( ( ( ( $ $ 6.821 2009 ( 805 331 5 625) 452 718 1.034 10.Seguros Inbursa. S.950 494 821 9.
931 ( 1. 327.788 339 960.132. 3.077 4. Grupo Financiero Inbursa Consolidated Balance Sheets (In thousands of Mexican pesos) (Notes 1.296 1.435 149.873) 63.055.249 791. 5.004 2.295 2009 Total assets Ps.545 133. 13 y 14) 110 December 31 2010 Assets Investments (note 6b): Securities: Mexican government Private enterprises: Fixed rate Variable rate Foreign Net unrealized gain on valuation Interest debtors 8.909 2.056.033 803.375 7.056.894. 6.903 46.Pensiones Inbursa.625 Loans (note 5c): Non-guaranteed loan Secured Overdue portfolio Interest debtors Real estate investments: Real estate (note 8) Depreciation 1.054.507.543 18.873) ( 310.589 136.323 331.401 Ps.183 Ps.370) 30.532 48.284 Cash and cash equivalents: Cash and banks Debtors: Note receivable Other Allowance for write-offs ( Other assets: Furniture and equipment.072 434 322.725.949 3.894 .024 1.736.458 4.932 216 80.006 30.537 353.415 1.043 1.228.141 40.245 331. 2.599. net Foreclosed and repossessed assets Sundry Unamortized expenses Amortization Intangible assets ( 45.407 1.464 29.325..601 16. 20.075 953.805 16.A. 22.138.848 127.284 20.051.245 3.762 376.798.998.076 Grupo Financiero Inbursa . S.881) ( 1647) 1.944 225.177 6.762) ( 30.080 Ps.
931 ( 4.108.423 91.007 725.219.639 15.757.512 527.438 412 277.798.406 5.458.341 82 85.000 1.696.863 135.383 1.874.576.926 1.447 15.139 1.931 904.887 57 34.725.485 453.519 185.325 166.708 622.426 6.076 $ 1.737 308.846 5.033.241 6. 20.294) 1.462 5.799 186.172 Financial Statements .040 Ps.793 Prevision: Contingency Special 281.925 581.453 89.005 1.289 1.210.993. 13.588.085.855.462 1.807 337.383 819.075.151 730.376 Ps. 111 December 31 2010 Liabilities Technical reserves (note 4f) Unearned premiums: Life Contractual obligations: Losses and maturities Deposit premiums 2009 Ps.787 Ps.165.383 350.944.458.645 1.216.078 1.145 1.500 2.255 85.705 101.682. 22.108.684 Reserves for labor obligations Creditors: Agents and adjusters Sundry (note 5d) Derivates (note 7a) Provision for income tax Other liabilities Deferred credits (note 12b) Total liabilities Stockholders’ equity (note 10) Capital stock Unsubscribed capital Paid-in capital stock Reserves: Legal reserve Other reserves Unrealized gain on valuation Retained earnings Net income Equity holders of the parent Non-controlling interest Total stockholders’ equity Total liabilities and stockholders’ equity 57 1. 14.578 96.383 350.219.396 34.042.899 941.348.376.636 14.033.756.506 460.887 16.183 Memoranda Accounts 2010 2009 Updated capital contribution Adjustment for fiscal update Fiscal Results Net taxable income to be distributed $ 1.142 206.509 314.519 274 91.000 1.301 80 359.
2010 Premiums written Increase in reserve for unearned premiums Retained earned premiums Net cost of losses.374 291.233 Income before income tax Income tax (note 12) Net income Equity holders of the parent Non-controlling interest Ps. S.854 64.038 40.847) Ps.642 Ps. 941.080.558 903.406 20.322 601. 581.087 156.443) ( 1.053. 851.A. claims and other contractual obligations: Technical loss Increase in other technical reserves: Contingency reserve Other reserves Gross loss Net operating expenses: Administrative and operating expenses Salaries and fringe benefits (note 1d) Depreciation and amortization Operating loss Comprehensive result of financing: On investments On sale of investments On valuation of investments (note 6e) Other Net monetary position 956.327.987) 838. 227. Grupo Financiero Inbursa Consolidated Statements of Income (In thousands of Mexican pesos) (Notes 1.445) 2.278 ( 943.874 113.051.229.646 Grupo Financiero Inbursa .780 1.510) ( 184.507 113.954 2009 18.045.026 1.754 7.219. 13 y 14) 112 Year ended December 31.226.334) ( 61. 11. 3.. 43.884 Ps.523 976.108 11.066 (1.859) ( 4.910 250.271 73.Pensiones Inbursa. 982.966 2. 2.074 137.854 (1.630 205.056) 2.131 1.052 Ps.273.039 1.837 34.544 38.164) ( ( 86.222 169. 4.079 69.312) ( ( 861.596) 5.846 Ps.
758 603.610 $ 29.449 674.000 603.467 218.758 $ 1.711 208.938 4.128.676 2009 $ 10. S. of shares) Property held on deposit.926 $ 2009 3 $ 3 2010 Liabilities and stockholders’ Equity Other accounts payable Taxes payable (Note 5) Sundry creditors and accounts payable Deferred taxes.548 $ 2010 23.198.741 276.061 971.149..676 820.335. 2009 $ 7.582 157.846 $ 274.865 1.V.128 1.785 7.000 $ 10.938 4.335.190 980.882 1.198.720 49.181 851.977 143.942 1. de C.449 734.030 956.747 Financial Statements .A. 2010 and 2009 (In thousands of Mexican pesos) 113 2010 Assets Cash and cash equivalents Investments in securities Securities for trading Accounts receivable.846 $ 1.708 181.989 5.Operadora Inbursa de Sociedades de Inversión. net (Note 5) Total liabilities Stockholders’ equity (Note 7): Contributed capital: Capital stock Earned capital: Capital reserves Retained earnings Net income of the year Total stockholders’ equity Total liabilities and stockholders’ equity Memoranda Accounts Authorized capital stock (historical amount) Shares issued (No.933 23.123 947.128. net (Note 3) Long-term equity investments (Note 4) Total assets $ 328. Grupo Financiero Inbursa Balance Sheets At December 31. delivered for safekeeping or under management The accompanying notes are an integral part of the financial statements.126.662 $ 1.
358 106. 2010 and 2009 (In thousands of Mexican pesos) 114 2010 Commissions and fees charged (Note 3) Commissions and fees paid (Note 3) Service revenues Financial intermediation margin (Nota 8) Total revenue from operating activities Administrative expenses Operating income Other income Other expenses Income before income tax Current year income tax (Note 5) Deferred income tax (Note 5) Income before equity interest in net income of subsidiaries and associated companies Equity interest in net income of subsidiaries and associated companies (Note 4) Net income The accompanying notes are an integral part of the financial statements. de C.628 37.755 233. 2009 $ 427.962 85. Grupo Financiero Inbursa Statements of Income At December 31.247 8.508 225.Operadora Inbursa de Sociedades de Inversión.A.643 8.096 237.248 324.V.588 208.800 68.056 332.395 4.621 $ 361.041 160. S.933 $ 67.856 140.683 190.580 201.587 95.077 276.513 222.885 56.175 32.030 Grupo Financiero Inbursa .915 405 54 329.396 28.442 $ 54..369 225.
747 588 2.534 3.580 117 61 3 13. 2.132 Collateral securities received and delivered in guaranty 41.707 53.869 Ps.523 Total liabilities and s Shareholders’ equity 228 2.449 Ps. 109. 13.V. De C. 2. 199 1.A.585 Ps.120.677.167 Total proprietary transactions LIABILITIES AND STOCKHOLDERS’ EQUITY Creditors under security repurchase agreements Ps. Financial Statements .054.306 931 3.638 66.865 Ps.404 1. Casa De Bolsa. furniture and equipment Long-term equity investments Other assets: Other assets. ( ( 3 95) 92) Security repurchase agreements Collateral securities received 41.553 29 20 3 16.009 158) 157) Ps.404 Other accounts payable: Income tax payable Sundry creditors and other accounts payable Settlement of transactions Deferred income tax (net) 13 Total liabilities 85 67 7.677.054. 1 ( ( Customers’ securities: Customers’ securities received for safekeeping Securities and notes received in guarantee 2. Grupo Financiero Inbursa Balance Sheets At December 31.079 2.692 4 11 3 Shareholders’ equity: Contributed capital: Capital stock Earned capital: Capital reserves Retained earnings Net income Total shareholders’ equity Total assets Ps.009 2009 Proprietary transactions Proprietary memoranda accounts Contingent assets and liabilities Ps.127 Ps.110 Ps. deferred charges and intangibles 844 800 11. 3. 12. 48.707 53.683 33 Ps. S.938 17. 7.. 2010 and 2009 (In millions of Mexican pesos) 115 Memoranda Accounts December 31 2010 Transactions on behalf of others Customers’ current accounts: Customers’ banks Settlement of customers’ transactions Ps.451 Ps.523 1.465 4. 4.553 2.079 Transactions on behalf of customers Customers’ repurchase agreements Managed trusts Total transactions on behalf of others ASSETS Cash and cash equivalents Investments in securities: For trading Debit balances under repurchase agreements Other accounts receivable (net) Buildings.019 113 2. 87.535 December 31 2010 2009 416 294 The accompanying notes are an integral part of these financial statements. Ps.Inversora Bursátil.012 Ps.449 Ps. 17.725. 12.
193 807 140 152 122 68 931 587 .505 1. 4 2. 674 114 55 662 619 438 665 .194 2.186 801 7 6 1. S. 931 Ps. Grupo Financiero Inbursa Statements of Income At December 31.V. de C..543 3.Inversora Bursátil. 588 Commissions and fees collected Commissions and fees paid Service revenues Trading income Trading loss Interest income Interest expense Fair value valuation result Financial intermediation margin Total operating income Administrative expenses Operating income Other income Income before income tax Income tax Deferred income tax Income before equity interest in net income of subsidiaries and associated Equity interest in net income of subsidiaries and associated companies Net income The accompanying notes are an integral part of these financial statements. 776 Ps. Casa de Bolsa. 1 Ps.053 319 252 1.629 612 208 843 434 1.336 3. 2010 and 2009 (In millions of Mexican pesos) 116 Year ended December 31 2010 2009 Ps.A. Grupo Financiero Inbursa .
939 57.477 1.281 1.094.026.FIANZAS GUARDIANA INBURSA.940 6.752 816.457 226.225 7.614 191.304.939 57.348 220.387 ( 7.827 3.877 5.984 640.516 64.423 69) 249.660 302 462 653.633 1.447 51.720 166.516 248) 7.417 96.477 66.192 2.849 67 253.306 80.009 9.134 3.304 14.427.986 2.225 170.274 7.407 30.948.950 299 3..709) ( 262.983 170.992 710.247 $ 3.448 88.451 8.220 Financial Statements .112 4.417 68) ( 264.821 ( ( ( 2.109 219.690 202.566 172.335 1.062 224.126 162.281 2.127) 244.042 2.594 4. S.353. GRUPO FINANCIERO INBURSA Balance Sheets (In thousands of Mexican pesos) 117 December 31 2010 Assets Investments Securities Mexican government Fixed rate Variable rate Foreign Net valuation Interest debtors Loans Guaranteed Unsecured Overdue loans Interest debtors Real estate Real estate Net valuation Depreciation Investments for labor obligations at retirement Total investments Cash and cash equivalents Cash and banks Debtors Premium debtors Agents and adjusters Bond debtors for claims paid Other Allowance for write-offs Reinsurance companies Surety bonding companies Other shares Reinsurers’ share of reserve for bonds in force Allowance for write-offs Other assets Furniture and equipment Foreclosed and repossessed property Sundry Amortizable expenses Total assets 2009 $ 1.431 224.A.451 9.614 316.307) 263.393 $ 28.727.662 2.559 601.891 162.140 $ 2.
281 40.324 11.011 $ 27.540 112.171 $ Grupo Financiero Inbursa .429 1.694 $ 410.277 24.374 40.833 6.222 56.650 7.244 2.372 346.301.924.909 1.493 628.082.422.227 31.388.930.120 29.490 53.503 Total liabilities Stockholders’ equity Paid-in capital Reserve legal Unrealized gain on valuation Subsidiaries Retained earnings Net income for the year Deficit from restatement of stockholders’ equity Total stockholders’ equity ( 158.369 1.820 1.287.854 $ 8.090 7.589 56.509 35.711 16.426 398 15.008 147.220 12.123 1.854 $ 18.483 1.859 ( 158.728 312.717 Total liabilities and stockholders’ equity $ 3.220 12.100.344.823 42. 118 December 31 2010 Liabilities Technical reserves Reserve for bonds in force Contingency reserve 2009 $ 716.034 4.220 Deposited securities Accounts registration Other Memoranda accounts 2009 2010 18.873 ) 58.727.501 Reserve for labor obligations at retirement Creditors Agents Sundry 149 24.077 13.127.948.439.605 941.834 259.333 1.816) 82.220 158.865.735 436.140 $ 2.369 2.220 158.425.109 Reinsurance companies Surety bonding companies Retained deposits Other Other liabilities Tax provision Other obligations Deferred credits 3.231 1.907 57.
057 442.596 345.645 118.874 112 1.791 110.792 ( $ 165..383) ( 1.347 93.277 346.399) 45.361 92.396 $ 963.777 590.326 100.047 70.516 ( 15.174) ( 58.022) ( 339.056 246.098 114.036 756.848 117.091 100. (income) Depreciation and amortization ( Operating profit Comprehensive financing income Investments Gain on sale of investments Gain on valuation of investments Other Exchange (loss) gain Income before income tax and equity interest in net income of subsidiaries Income tax expense Equity interest in net income of subsidiaries Net income for the year ( ( ( 98.464 220.051 201.993 93. GRUPO FINANCIERO INBURSA Statement of Operations (In thousands of Mexican pesos) 119 December 31 2010 Premiums Written Ceded Retained Net increase in reserve for bonds in force Retained earned premiums Net acquisition cost Agent commissions Commissions on reinsurance ceded Other ( 1.041) ( 10.077 Claims Technical profit Net increase of others technical reserves Net increase in contingency reserve Gross profit Net operating expenses Administrative and operating expenses.288 378) 201) 251.370) 600.145 44.915 792.132 $ 2009 919.044 863.918 150 141.444) 222.471 436.962 72.A.222 $ 26. S.015 115.589 Financial Statements .049 108.113 63.536) 21.487 ( 431.049 450 43.FIANZAS GUARDIANA INBURSA.213 819.542) 1.421) 2.
120 Grupo Financiero Inbursa .
V.: (52 55) 5625 4900. Paseo de las Palmas No. 736 Lomas de Chapultepec 11000 México City Frank Aguado Martínez Tel.mx .B. S.For Information: Grupo Financiero Inbursa.A.: (52 55) 5625 4900. de C. ext. ext. 6641 Fax: (52 55) 5625 4965 e-mail: igonzalezs@ inbursa.com www.com Juan Ignacio González Shedid Tel. 3350 Fax: (52 55) 5625 4965 e-mail: faguadom@ inbursa.alldesign.
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