Annual Report 2021
GRUPO FINANCIERO BANORTE, S.A.B. DE C.V.
David Alfaro Siqueiros 106, Col.Valle Oriente
C. P. 66278
San Pedro Garza García, Nuevo León, México
This Annual Report was prepared in accordance with regulations applicable to companies issuing securities as well as other participants in the market with information for the fiscal year ending December 31st, 2021.
The 2,883,456,594 "O" series shares of Grupo Financiero Banorte, S.A.B. de C.V. in circulation as of December 31st, 2021 are traded in the Bolsa Mexicana de Valores (Mexican Stock Exchange) under the symbol "GFNORTE O" and are registered in the National Securities Registry ("RNV").
The second to last paragraph of Article 86 of the Stock Market Law states that:
Issuing companies with registered securities, must display in the prospectus, supplement or informative brochure, a legend that explicitly states that such registration does not imply a certification of the attractiveness of those securities, solvency of the issuer or the accuracy or truthfulness of the information contained in the prospectus, nor does it authenticate acts that, if the case, have been conducted in breach of these laws.
This report is available to the public at www.investor.banorte.com,in the route "Financial Information / Annual Reports / Circular Unica CNBV 2021 Annual Report - GFNorte".
San Pedro Garza García, N.L. April 30th, 2022.
Annual Repor 2021 (Circular Única de Emisoras) Grupo Financiero Banorte, S.A.B. de C.V. 2
INDEX
Page | ||
5 | ||
5 | ||
b) Executive Summary | 9 | |
c) Risk Factors | 13 | |
d) Other Securities | 43 | |
e) Significant Changes to Registered Securities' Rights | 47 | |
f) Destination of Funds | 49 | |
g) Public Documents | 49 | |
2. THE COMPANY | 50 | |
a) Development and History of the Company | 50 | |
b) Business Description | 61 | |
i. | Main Activities | 61 |
ii. | Distribution Channels | 64 |
iii. Patents, Licences, Brands and other Contracts | 67 | |
iv. | Main Clients | 69 |
v. Applicable Legislation and Tax Situation | 70 | |
vi. | Human Resources | 122 |
vii. Environmental Performance | 122 | |
viii. Market Information | 122 | |
ix. | Corporate Structure | 138 |
x. Description of Main Assets | 139 | |
xi. Administrative, Arbitration and Judicial Processes | 140 | |
xii. Representative Shares of Company's Equity | 140 | |
xiii. Dividends | 141 | |
3. SELECTED FINANCIAL INFORMATION | 142 | |
a) Selected Financial Information | 142 | |
b) Financial Information per Business Line, Geographical Region and Export Sales | 144 | |
c) Report of Relevant Loans | 146 | |
d) Management Analysis and Comments on Operating Results and the Company's Financial | 149 | |
Situation | ||
i. | Operating Results | 149 |
ii. Financial Situation, Liquidity and Captial Resources | 168 | |
iii. Internal Control | 175 | |
e) Critical Accounting Estimates, Provisions or Reserves | 176 | |
4. ADMINISTRATION | 288 |
a) External Auditors | ¡Error! |
Marca | |
Annual Repor 2021 (Circular Única de Emisoras) Grupo Financiero Banorte, S.A.B. de C.V. 3
Page | |
dor no | |
definid | |
o. | |
¡Error! | |
Marca | |
b) Operations with Related Parties and Conflicts of Interest | dor no |
definid | |
o. | |
¡Error! | |
Marca | |
c) Managers and Shareholders | dor no |
definid | |
o. | |
¡Error! | |
Marca | |
d) Corporate By-Laws and other Agreements | dor no |
definid | |
o. | |
5. STOCK MARKET | 289 |
a) Share Structure | 289 |
b) Performance of Shares in the Stock Market | 289 |
c) Market Maker | 292 |
6. UNDERLYING ASSETS | 293 |
7. RESPONSIBLE OFFICERS | 294 |
8. ANNEXES | 295 |
a) Audit and Corporate Practices Committee Report (2021, 2020and 2019) | 295 |
b) Audited Financial Statements (2021, 2020and 2019) | 301 |
Annual Repor 2021 (Circular Única de Emisoras) Grupo Financiero Banorte, S.A.B. de C.V. 4
1. GENERAL INFORMATION
a) GLOSSARY OF TERMS AND DEFINITIONS
Unless the context suggests otherwise, for purposes of this Annual Report, the following terms have the meanings ascribed to them below and can be used interchangeably in singular or plural.
TERM | DEFINITION |
ADR's: | American Depositary Receipts |
Afores: | Retirement Saving Funds Managers. |
Afore Bancomer: | Administradora de Fondos para el Retiro Bancomer, S.A. de C.V. |
Afore Banorte: | Banorte Generali, S. A. de C. V., AFORE (prior its merger with Afore XXI). |
Afore XXI Banorte: | Afore XXI Banorte, S.A. de C.V. (corporate identity after the Afore Banorte and Afore |
XXI merger). | |
Almacenadora Banorte | Almacenadora Banorte, Organizacion Auxiliar del Credito, Grupo Financiero Banorte |
Arrendadora y Factor Banorte: | Arrendadora y Factor Banorte, S.A. de C.V., Sociedad Financiera de Objeto Multiple, |
Entidad Regulada, Grupo Financiero Banorte. | |
ATM's: | Automated Teller Machine. |
Bancen: | Banco del Centro, S. A. |
Bancrecer: | Bancrecer, S. A. |
Banking Subsidiaries: | Banorte and subsidiaries |
Banorte: | Banco Mercantil del Norte, S. A., Institucion de Banca Multiple, Grupo Financiero |
Banorte. | |
Banorte Ahorro y Previsión | Banorte Ahorro y Previsión, S.A. de C.V. |
Banorte Futuro | Banorte Futuro, S.A. de C.V., |
Banorte-Ixe Tarjetas: | Banorte-Ixe Tarjetas, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad |
Regulada (Formerly Ixe Tarjetas). Subsidiary of Banorte. | |
Banorte USA: | Banorte USA Corp., subsidiary of Banco Mercantil del Norte, S. A. |
Banxico: | Bank of Mexico (Mexican Central Bank). |
BIVA | Bolsa Institucional de Valores (Mexican Stock Exchange) |
BMV: | Bolsa Mexicana de Valores, S.A.B. de C.V. (Mexican Stock Exchange). |
bp | Basis points |
Capitalization requirements: | Capital requirements for credit institutions established in the LIC and Circular Unica de |
Bancos | |
Casa de Bolsa Banorte: | Casa de Bolsa Banorte, S.A. de C.V., Grupo Financiero Banorte (merged entity with |
Ixe Casa de Bolsa). | |
Casa de Bolsa Banorte Ixe: | Casa de Bolsa Banorte Ixe, S.A. de C.V., Grupo Financiero Banorte. |
CAPS: | Comité de Auditoria y Prácticas Societarias (Audit & Corporate Practices Committe). |
CC: | Credit letters. |
CDP: | Not-for-profit organization which provides the major environmental divulgation system |
in the world. | |
CEBUR: | Certificado Bursátil (Stock Certificate). |
CEDES: | Certificados de Depósito a Plazo Fijo (Fixed term Certificate of Deposit). |
CETES: | Certificados de la Tesorería de la Federación (Mexican Federal Treasury Certificates). |
Circular Unica de Bancos | General provisions applicable to credit institutions, published in the Official Gazette on |
(CUB): | December 2nd, 2005, as they have been modified. |
Annual Repor 2021 (Circular Única de Emisoras) Grupo Financiero Banorte, S.A.B. de C.V. 5
TERM | DEFINITION |
Circular Única de Emisoras | General provisions applicable to issuers and other market participants, published in the |
(CUE): | Official Gazette on March 19, 2003, as they have been modified. |
CMPC | Código de Mejores Prácticas Corporativas (Best Corporate Practices Code). |
CNBV: | Comisión Nacional Bancaria y de Valores (National Banking and Securities |
Commission). | |
CNSF: | Comisión Nacional de Seguros y Fianzas (National Insurance and Bonding |
Commission). | |
COFECO/ COFECE: | Comisión Federal de Competencia Económica (Federal Commission of Economic |
Competion). | |
CONDUSEF: | Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios |
Financieros (National Comission for the Protection and Defense of Financial Services | |
users). | |
CONSAR: | Comisión Nacional del Sistema de Ahorro para el Retiro (National Comission of the |
Retirement Saving Funds System). | |
CPO's: | Certificados de Participación Ordinarios (Ordinary Participation Certificates). |
CPR | Comité de Politicas de Riesgo (Risk Policies Committee). |
CR: | Capitalization ratio. |
Creditos Pronegocio: | Créditos Pronegocio, S.A. de C.V., Sociedad Financiera de Objeto Limitado, Grupo |
Financiero Banorte | |
CUSF: | General provisions applicable to Insurance and Bonding Insitutions. |
D: | Director. |
DMD: | Deputy Managing Director. |
DOF: | Diario Oficial de la Federacion (Official Gazette). |
ED | Executive Director |
EMISNET: | Electronic Communications System with Securities Issuers. |
EPS: | Employee Profit Sharing Agreement. |
FCICK 16-1 | Conversion Trust FCICK 16-1 |
Fincasa Hipotecaria: | Fincasa Hipotecaria, S.A. de C.V. Sociedad Financiera de Objeto Múltiple, Entidad |
Regulada, Grupo Financiero Banorte (merged in Banco Mercantil del Norte). | |
Fintech | Financial Technology Entities |
Forward: | Non-standardized private contract to buy or sell a specific asset at a certain price level |
whose liquidation will be carried out at a future date. | |
Generali: | Assicurazioni Generali, S.P.A. Italian company and strategic partner of GFNorte until |
2013. | |
GFInter | Grupo Financiero Interacciones, S.A.B. de C.V |
GFNorte, the Company, the | Grupo Financiero Banorte, S. A. B. de C. V. |
Issuer: | |
GEO: | Corporación GEO, S.A.B. de C.V. |
Holding: | Holding company. |
Homex: | Desarrolladora Homex, S.A.B. de C.V. |
IFC: | International Finance Corporation. |
IMSS: | Instituto Mexicano del Seguro Social. (Mexican Social Security Institute) |
INB: | Inter National Bank. |
Indeval: | S. D. Indeval, Institucion para el Depósito de Valores, S. A. de C. V. (Institute for |
Deposit of Securities). | |
IPAB: | Instituto para la Protección al Ahorro Bancario (Institute for the Protection of Bank |
Savings). | |
ISR: | Income Tax. |
Annual Repor 2021 (Circular Única de Emisoras) Grupo Financiero Banorte, S.A.B. de C.V. 6
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Grupo Financiero Banorte SAB de CV published this content on 22 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2022 18:13:02 UTC.