Region

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Regulator

2018-01-04 | DOF 5510036

Added 2026-08-29

Resolution modifying the general provisions applicable to development agencies and development entities

The resolution amends Accounting Criteria B-5, B-3, and D-2 in Annexes 37 and 38 of the General Provisions applicable to development agencies and entities. It mandates that federal funds and fiduciaries conducting financial activities, along with Infonacot, Infonavit, and Fovissste, adjust their accounting to recognize credit loss estimate excesses and recoveries in the period they occur, aligning with International Financial Reporting Standards. These changes become mandatory on January 1, 2019, with an option for early adoption upon notification to the CNBV within ten business days. Additionally, specific Financial Information Standards (B-17, C-3, C-9, C-16, C-19, C-20, D-1, and D-2) enter into force on January 1, 2019.

Mexico

Secretaria de Hacienda y Credito Publico

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DOF: 04/01/2018

RESOLUTION modifying the general provisions applicable to development agencies and development entities

At the margin, a seal with the National Coat of Arms, which says: United Mexican States.- Ministry of Finance and Public Credit.- National Banking and Securities Commission.

The National Banking and Securities Commission, based on what is provided by articles 125, last paragraph of the Credit Institutions Law; 33, first paragraph of the Law of the National Institute for Worker Consumption Fund; 66, fraction II of the Law of the National Institute for Worker Housing Fund; 177, third paragraph of the Law of the Security and Social Services for State Workers Institute; 4, fractions III, IV, XXXVI and XXXVIII and 16, fraction I of the Law of the National Banking and Securities Commission; 12, 15, first paragraph, 22, fraction I, subsections d), e) and f), 42, fraction I and 58 of the Internal Regulations of the National Banking and Securities Commission, as well as 14, fractions II, subsection 31), VI, subsection 1), VII, subsection 2), VIII and IX, and 38, fractions I, subsections 2), 3) and 11), III, subsection 43), XII, subsection 1), XIII, subsection 1) and XV, subsection 2) of the Agreement by which the President of the National Banking and Securities Commission delegates powers to the Vice Presidents, General Directors and Assistant General Directors of said Commission, and

CONSIDERING

That it is convenient to adjust the accounting criteria applicable to public funds and trusts constituted by the Federal Government for economic promotion that carry out financial activities referred to in article 3 of the Credit Institutions Law and to the National Institute for Worker Consumption Fund, as well as to the National Institute for Worker Housing Fund and to the Housing Fund of the Security and Social Services for State Workers Institute, so that they can cancel, in the period in which they occur, the excesses in the balance of the preventive estimates for credit risks, as well as to recognize the recovery of previously written-off credits against the item preventive estimates for credit risks, in order to make them consistent with the international standards established in the International Financial Reporting Standards, and

That additionally it is important to incorporate certain Financial Information Standards issued by the Mexican Council for Financial Reporting Standards, A.C., so that they become applicable to the development agencies and entities at the time of determining the deadline for their application, with the object that these financial entities are able to comply with them, has resolved to issue the following:

RESOLUTION MODIFYING THE GENERAL PROVISIONS APPLICABLE TO DEVELOPMENT AGENCIES AND DEVELOPMENT ENTITIES

SOLE.- The Annexes 37, Criteria A-2 "Application of particular standards", B-5 "Credit Portfolio" and D-2 "Statement of Results"; and 38, Criteria A-2 "Application of particular standards", B-3 "Credit Portfolio" and D-2 "Statement of Results" of the "General provisions applicable to development agencies and development entities", published in the Official Gazette of the Federation on December 1, 2014 and modified through resolutions published in said Official Gazette on August 27, 2015, January 25, 2016, and July 24, 2017, are REFORMED, to read as follows:

TITLES FIRST to SIXTH

...

Annexes 1 to 36

...

Annex 37

Accounting Criteria for Development Entities and Infonacot.

Annex 38

Accounting Criteria for Fovissste and Infonavit.

Annexes 39 to 44

...

TRANSITIONAL PROVISIONS

FIRST.- The public funds and trusts constituted by the Federal Government for economic promotion that carry out financial activities referred to in article 3 of the Credit Institutions Law and the National Institute for Worker Consumption Fund, as well as the National Institute for Worker Housing Fund and the Housing Fund of the Security and Social Services for State Workers Institute shall adjust to what is provided in Criteria B-5 and B-3 "Credit Portfolio", respectively, and D-2 "Statement of Results" of Annexes 37 and 38 that are modified by this Resolution, starting from January 1, 2019.

Notwithstanding the foregoing, the development agencies and entities may opt to apply Criteria B-5 and B-3 "Credit Portfolio", as applicable, and D-2 "Statement of Results" of Annexes 37 and 38, which are reformed by this instrument, starting from the day following its publication, being required to give notice that they exercised said option to the National Banking and Securities Commission no later than 10 business days following the date on which the early application of the aforementioned criteria will begin.

SECOND.- The Financial Information Standards B-17 "Determination of fair value", C-3 "Accounts receivable", C-9 "Provisions, contingencies and commitments", C-16 "Impairment of financial assets for collection", C-19 "Financial liabilities for payment", C-20 "Financial instruments for collecting principal and interest", D-1 "Revenue from contracts with customers" and D-2 "Costs from contracts with customers" issued by the Mexican Council for Financial Reporting Standards, A.C. and referred to in paragraph 3 of Criterion A-2 "Application of particular standards" of Annexes 37 and 38 that are modified by this instrument shall enter into force on January 1, 2019.

Respectfully,

Mexico City, December 21, 2017.- National Banking and Securities Commission: Vice President of Regulation, Arcelia Olea Leyva.- Signature.- Vice President of Supervision of Development Banking and Popular Finance, Cecilia Teresa Mondragón Lora.- Signature.

A-2 APPLICATION OF PARTICULAR STANDARDS

Objective and scope

This criterion aims to clarify the application of particular standards of the NIFs, as well as clarifications to them.

The subject matter of this criterion is:

the application of some of the particular standards made known in the NIFs, and

the clarifications to the particular standards contained in the NIFs.

Financial Information Standards

In accordance with what is established in criterion A-1 "Basic scheme of the set of accounting criteria applicable to Development Entities and Infonacot", entities shall observe, until there is an express pronouncement by the CNBV, the particular standards contained in the bulletins or NIFs detailed below, or in the NIFs that replace or modify them:

NIF B Series "Standards applicable to financial statements as a whole"

Accounting changes and corrections of errors

................................................................. B-1

Business combinations

...................................................................................... B-7

Consolidated or combined financial statements

.............................................................. B-8

Financial information at interim dates

................................................................... B-9

Effects of inflation

.......................................................................................... B-10

Events after the reporting date

................................................... B-13

Foreign currency translation

.......................................................................... B-15

Determination of fair value

............................................................................ B-17

NIF C Series "Standards applicable to specific items in financial statements"

Accounts receivable

............................................................................................... C-3

Inventories

........................................................................................................ C-4

Prepayments

................................................................................................ C-5

Property, plant and equipment

................................................................................... C-6

Investments in associates, joint ventures and other permanent investments

.......................... C-7

Intangible assets

............................................................................................... C-8

Provisions, contingencies and commitments

.................................................................... C-9

Equity

................................................................................................. C-11

Financial instruments with characteristics of liability and equity

....................................... C-12

Impairment of long-lived assets and disposal

.................................... C-15

Impairment of financial assets for collection

........................................................... C-16

Obligations associated with the retirement of property, plant and equipment

.................................... C-18

Financial liabilities for payment

........................................................................... C-19

Financial instruments for collecting principal and interest

.................................................... C-20

Joint control agreements

................................................................................. C-21

NIF D Series "Standards applicable to profit determination issues"

Revenue from contracts with customers

............................................................................. D-1

Costs from contracts with customers.

.............................................................................. D-2

Employee benefits

..................................................................................... D-3

Leases

.................................................................................................. D-5

Capitalization of comprehensive financing result

....................................................... D-6

Additionally, entities shall observe the NIFs issued by CINIF on topics not foreseen in the accounting criteria for Development Entities and Infonacot, provided that:

they are in effect as definitive;

they are not applied in advance;

they do not contravene the philosophy and general concepts established in the accounting criteria for Development Entities and Infonacot, and

there is no express pronouncement by the CNBV, among others, regarding clarifications to the particular standards contained in the NIF issued, or regarding its non-applicability.

Clarifications to the particular standards contained in the NIFs

Taking into consideration that entities carry out specialized operations, it is necessary to establish clarifications that adapt the particular standards of recognition, valuation, presentation and, if applicable, disclosure, established by CINIF. In virtue of this, entities observing what is established in the previous paragraph shall adjust to the following:

B-8 Consolidated or combined financial statements

Regarding the requirements for consolidation of financial statements referred to in NIF B-8, investment companies are exempt from the uniform recognition of accounting criteria applicable to Development Entities and Infonacot, solely with respect to the restatement of financial statements, considering that this criterion is not applicable to investment companies.

Regarding those specific purpose entities (SPEs) created prior to January 1, 2015 where control has been maintained, Development Entities will not be obligated to apply the provisions contained in NIF B-8, with respect to said SPE.

B-9 Financial information at interim dates

The provisions of NIF B-9 must be applicable to financial information issued at interim dates, including the quarterly information that must be published or disseminated through the electronic page on the worldwide network known as Internet corresponding to the entity itself, in terms of the general provisions applicable to the financial information of Development Entities and Infonacot published by the CNBV.

For the purposes of disclosing information issued at interim dates, entities shall observe the provisions regarding the disclosure of financial information contained in criterion A-3 "Application of general standards".

B-10

Effects of inflation

Determination of monetary position

In the case of an inflationary environment based on what is stated by NIF B-10, the following shall be attended to:

Entities shall disclose the initial balance of the main monetary assets and liabilities used to determine the monetary position of the period, differentiating, if applicable, those that affect from those that do not affect the financial margin.

Price index

Entities shall use the value of the Investment Unit (UDI) as the price index.

Result from monetary position

The result from monetary position (REPOMO) that has not been presented directly in equity or capitalized in terms of what is established in NIF B-10, must be presented in the statement of results in a specific item within the financial margin when it comes from financial margin items; otherwise, it will be presented within the item of other income (expenses) from operations.

The REPOMO related to items whose valuation adjustments are recognized in equity, shall be presented in the equity account corresponding to its nature, for example, the REPOMO attributable to the valuation effect of available-for-sale securities shall be presented in the item similar to it.

B-15

Foreign currency translation

In the application of NIF B-15, the exchange rate to be used to establish the equivalence of the national currency with the United States dollar, shall be the FIX exchange rate published by the Bank of Mexico in the Official Gazette of the Federation on the business day following the date of the transaction or of the preparation of the financial statements, as applicable.

In the case of currencies other than the United States dollar, the respective currency must be converted to United States dollars. To carry out said conversion, they will consider the exchange rate governing the corresponding currency in relation to said dollar in international markets, as established by the Bank of Mexico in the applicable regulation.

Likewise, the amount of operations denominated in foreign currency by the most relevant currencies for the entity, as well as the exchange rate used and its equivalent in national currency, shall be disclosed in notes to the financial statements, in accordance with what is stated in the two preceding paragraphs.

C-3

Accounts receivable

Scope

For the purposes of Bulletin C-3, accounts receivable derived from the operations referred to in criteria B-3 "Repo transactions", B-4 "Derivatives and hedging operations" and B-5 "Credit portfolio" and, issued by the CNBV, shall not be included, since the standards of recognition, valuation, presentation and disclosure applicable are contemplated in them.

Accounts receivable from Work Centers

In the case of Infonacot, when the worker proves that the amount derived from deductions referred to in criterion B-5 "Credit portfolio", which have been carried out contractually by the Work Center and not remitted to Infonacot, shall be recorded as an account receivable from the Work Center, decreasing the credit portfolio. To said account receivable, the interests that may be generated shall be included, recognizing them within the results of the exercise in the item of other income (expenses) from operations.

The account receivable referred to in the previous paragraph shall be reduced by the amounts effectively received by Infonacot from the Work Centers from the deductions.

The following shall be disclosed through notes to the financial statements:

the collection actions carried out in the recovery of the account receivable indicated in the two preceding paragraphs;

the age of the balance according to the following timeframes: 1 to 180 calendar days, 181 to 365 calendar days, 366 calendar days to 2 years and more than 2 years;

the percentage it represents of the total credit portfolio, and

the amount of the estimate for uncollectability or difficult collection constituted in terms of the following paragraph 24.

Loans to officials and employees

The interests derived from loans to officials and employees shall be presented in the statement of results in the item of other income (expenses) from operations.

Estimate for uncollectability or difficult collection

The estimate for uncollectability or difficult collection corresponding to items directly related to the credit portfolio such as litigation expenses, shall be determined by applying the same risk percentage assigned to the associated credit, in accordance with what is established in criterion B-5.

The estimate for uncollectability or difficult collection corresponding to the account receivable referred to in the previous paragraph 19 shall be constituted for the total amount of the debt 90 calendar days following its initial recognition.

For the loans granted by the entities to their officials and employees, as well as for those accounts receivable other than those indicated in the two preceding paragraphs and those in paragraph 27, relating to identified debtors whose maturity is agreed from origin to a term greater than 90 calendar days, an estimate reflecting their degree of uncollectability shall be created, if applicable.

Such estimate shall be obtained by conducting a study that serves as a basis to determine the different quantifiable future events that could affect the amount of those accounts receivable, thereby showing the estimated recovery value of the enforceable rights.

Regarding operations with immediate collection documents not collected referred to in criterion B-1 "Cash and cash equivalents", 15 calendar days following from the date on which they have been transferred as other debtors, these shall be classified as overdue debts and their estimate for the total amount thereof shall be constituted simultaneously.

The estimate of accounts receivable not included in paragraphs 23, 24, 25 and 27 above shall be constituted for the total amount of the debt according to the following timeframes:

60 calendar days following their initial registration, when they correspond to unidentified debtors, and

90 calendar days following their initial registration, when they correspond to identified debtors.

No estimate for uncollectability or difficult collection shall be constituted in the following cases:

tax balances in favor;

creditable value added tax, and

liquidating accounts.

C-4

Inventories

For the purposes of NIF C-4, in the case of Development Entities, inventories shall be understood as land inventory. Likewise, rough lands, lands under construction or urbanization, raw materials and materials, work in progress and finished articles, respectively.

Write-downs for the decrease in value of land inventory shall be recorded in results as other income (expenses) from operations, and no estimate shall be created for said concept.

C-7

Investments in associates, joint ventures and other permanent investments

Regarding the requirements for the application of the equity method referred to in NIF C-7, investment companies are exempt from the uniform recognition of accounting criteria applicable to Development Entities and Infonacot, solely with respect to the restatement of financial statements, considering that this criterion is not applicable to investment companies.

C-9

Liabilities, provisions, contingent assets and liabilities and commitments

Scope

For the purposes of Bulletin C-9, liabilities related to the operations referred to in criteria B-3 "Repo transactions" and B-4 "Financial derivative instruments and hedging operations" are not included, as these are contemplated in said criteria.

Likewise, what is established in Bulletin C-9 shall not be applicable for the determination of guarantees granted, in which case the indication in criterion B-7 "Guarantees" shall be followed.

Traditional collection

Liabilities arising from traditional collection represent all those contributions that the Federal Government makes in order to constitute deposits for the particular use of the beneficiaries of the Entities, which shall be recorded taking as a basis the contractual value of the obligation.

The titles included in traditional collection shall be distinguished according to the following classification:

titles placed at nominal value, and

titles placed at a price different from the nominal value (with premium or at a discount).

Titles placed at nominal value shall adhere to what is established in paragraph 35, recognizing accrued interests directly in the results of the exercise as an interest expense.

Those titles placed at a price different from the nominal value, in addition to what is established in the previous paragraph, shall recognize a deferred charge or credit for the difference between the nominal value of the title and the amount of cash received for it. Likewise, when titles are placed at a discount and do not accrue interest (zero coupon), they shall be recorded at the time of issuance taking as a basis the amount of cash received for them.

The amount of issuance expenses, as well as the discount or premium in the placement, shall be recorded as a deferred charge or credit, as applicable, and shall be recognized in the results of the exercise as interest expenses or income, as applicable, as they accrue, taking into consideration the term of the title that gave rise to it, in terms referred to in Bulletin C-9.

For the purposes of its presentation, the premium or discount on placement must be shown within the liability that

it gave rise to and the deferred charge for issuance expenses will be presented under the item of other assets.

In addition to the disclosure required in the aforementioned Bulletin C-9, the characteristics of the issuance of the credit titles issued must be disclosed in notes to the financial statements: amount; number of titles in circulation; nominal value; discount or premium; rights and form of redemption; guarantees; maturity; interest rate; effective interest rate; amortized amount of the discount or premium in results; amount of issuance expenses and other related expenses, and the proportion that the authorized amount holds relative to the issued amount.

Bank loans and from other organisms

For their recognition, they will adhere to what is established in paragraph 35, recognizing accrued interest directly in the results of the exercise as an interest expense.

They must disclose in notes to the financial statements the total amount of bank loans, as well as those from other organisms, indicating for both the type of currency, as well as the maturity terms, guarantees, and average weighted rates to which, if applicable, they are subject.

In the case of credit lines received by the entity in which not all the authorized amount is exercised, the unused part of them shall not be presented in the balance sheet. However, entities must disclose through notes to the financial statements the unused amount, attending to what is established in criterion A-3, regarding the disclosure of financial information.

C-11

Equity Capital

For the purposes of this NIF, equity capital is understood as accounting equity, which is divided into

a) contributed equity which is represented by contributions made in accordance with applicable legislation, and b) earned equity which corresponds to reserves, results of previous exercises, and items that form part of comprehensive income.

Regarding Development Entities, the allocation of fiscal resources that they receive from the Federal Government through the Federal Expenditure Budget Decree (PEF) for the operation of support programs in accordance with applicable regulation will form part of contributed equity.

At the end of the balance sheet, they must disclose the historical amount of the contributions referred to in paragraph 45.

D-3

Employee Benefits

The liability generated by employee benefits will be presented in the balance sheet under the item other accounts payable.

Additionally, through notes to the financial statements, the identification of obligations for short and long-term employee benefits must be disclosed.

Advance payments arising from the application of this NIF will form part of the item of other assets.

D-5

Leases

Capitalizable Leases

Scope

What is established in this Bulletin will not be applicable to credits granted by the entity for capitalizable lease operations, which is the subject of criterion B-5.

Requirements

For the purposes of the requirements established in paragraph 33 of Bulletin D-5, it will be understood that the lease period is substantially equal to the remaining useful life of the leased asset, if such contract covers at least 75% of its useful life. Likewise, the present value of minimum payments will be substantially equal to the market value of the leased asset, if such present value constitutes at least 90% of that value.

Operating Leases

Accounting for the Lessee

For presentation purposes, the lessee must include in the balance sheet the lease liability as part of the item of various creditors and other accounts payable, and in the statement of results the lease expense in the item of administration and promotion expenses.

D-6

Capitalization of Comprehensive Financing Result

For the purposes of this NIF, Comprehensive Financing Result is understood as the following concepts: a) interest; b) result from monetary position, c) profit or loss on exchange and d) the other costs referred to in NIF D-6. These concepts may be capitalized to qualifying assets, instead of being recognized in the statement of results as income or interest expenses or other income (expenses) from operations, as applicable, based on what is established in the aforementioned NIF D-6.

The foregoing will not be applicable to qualifying assets in which a specific accounting criterion issued by the CNBV establishes a different treatment.

B-5 CREDIT PORTFOLIO

Objective and Scope

This criterion aims to define the particular rules relative to the recognition, valuation, presentation, and disclosure in the financial statements, of the credit portfolio of entities.

This criterion also includes accounting guidelines relative to the preventive estimation for credit risks.

The following are not the object of this criterion:

The establishment of the methodology for the qualification and constitution of the preventive estimation for credit risks.

The accounting rules relative to values issued in series or in mass, which are quoted in recognized markets and which the entity maintains in its own position, even if they are linked to credit operations, being the subject of criterion B-2 "Investments in securities".

Definitions

Borrower.- The natural or legal person, or trust to whom a credit is granted.

Aforo.- The amount of the nominal value of the credit rights transferred in a financial factoring operation, which the factor does not finance to the factor and which is obligated to deliver to the latter, once the collection of the portfolio subject to factoring is carried out.

Capitalizable Lease.- A lease that transfers substantially all the risks and benefits inherent to the ownership of an asset.

Portfolio Qualification.- Methodology used by entities to recognize the credit risk associated with the credits granted by them.

Payment Capacity.- For the purposes of this criterion, it will be understood that there is payment capacity when the conditions established to that effect in the General Provisions applicable to development agencies and development entities are met.

Overdue Portfolio.- That composed of credits whose borrowers are declared in commercial bankruptcy, or whose principal, interest, or both, have not been liquidated in the terms originally agreed, considering for this purpose what is established in paragraphs 64 to 78 of this criterion.

Current Portfolio.- That integrated by credits that are up to date in their payments of both principal and interest, as well as by those credits with principal or interest payments overdue that have not been located in the scenarios provided for in this criterion to consider them as overdue, and those that having been classified as overdue portfolio are restructured or renewed and have evidence of sustained payment in accordance with what is established in this criterion.

Write-off.- Is the cancellation of the credit when there is evidence that formal collection efforts have been exhausted or the practical impossibility of recovering the credit has been determined.

Commission for the granting of credit.- Exists when the entity and the borrower have agreed from the date the credit was arranged, the collection of a monetary recovery fee for the costs or expenses incurred to grant the credit regardless of the moment in which the disbursements of the same are made. Likewise, commissions charged for restructuring or renewal of credits are considered part of these commissions.

Consolidation of credits.- Is the integration into a single credit of two or more credits granted by the same entity to the same borrower.

Amortized Cost.- For the purposes of this criterion, it is the valuation method that integrates the amount effectively granted to the borrower, adjusted by accrued interest that have been recognized in accordance with what is established in this criterion, the insurance that, if applicable, had been financed, the collections of principal and interest, as well as by discounts, forgiveness, bonuses, and discounts that have been granted.

Credit.- Asset resulting from the financing granted by entities based on what is established in the applicable legal provisions.

Housing Credits.- To direct credits denominated in national currency, foreign currency, in investment units (UDIs) or in times minimum wage (VSM), as well as the interest they generate, granted to natural persons and destined for the acquisition, construction, remodeling, or improvement of housing without commercial speculation purpose that have a mortgage guarantee on the borrower's housing, likewise credits granted for such effects to ex-employees of the entities and those liquidity credits guaranteed by the borrower's housing are included.

Commercial Credits.- To direct or contingent credits, including bridge credits, denominated in national currency, foreign currency, in UDIs or in VSM, as well as the interest they generate, granted to legal persons or natural persons with business activity and destined for their commercial or financial business; including those granted to financial entities, to credits for financial factoring operations, and to credits for capitalizable lease operations that are celebrated with such legal or natural persons; credits granted to trustees acting under the protection of trusts and the credit schemes commonly known as "structured" in which there is an asset affectation that allows evaluating the risk associated with the scheme individually. Likewise, credits granted to federative entities, municipalities, and their decentralized organisms, as well as those in charge of the Federal Government or with express guarantee of the Federation, registered before the General Directorate of Public Credit of the Ministry of Finance and Public Credit and of the Bank of Mexico will be included.

Consumer Credits.- To direct credits, including liquidity credits that do not have real estate guarantee, denominated in national currency, foreign currency, in UDIs or in VSM, as well as the interest they generate, granted to natural persons, derived from personal credits, payroll credits, and credits for the acquisition of durable consumer goods (known as ABCD), which contemplates among others the automotive credit and capitalizable lease operations that are celebrated with natural persons; including those credits granted for such effects to ex-employees of the entities.

Restricted Credits.-

These are considered as such those credits regarding which there are circumstances by which they cannot be disposed of or used, and must be presented as restricted; for example, the credit portfolio that the assigning entity grants as guarantee or collateral in securitization operations.

Debtor of the credit rights object of financial factoring.- The natural or legal person to whom the credit rights transferred from the factor to the factor in a financial factoring operation were originally exigible.

Preventive Estimation for Credit Risks.- Affectation that is made against the results of the exercise and which measures that portion of the credit that is estimated will not have viability of collection.

Factor.- The natural or legal person who transfers the credit rights in their favor, whose payment obligation is borne by the debtor of the credit rights object of financial factoring.

Financial Factoring.- Operation by virtue of which the factor agrees with the factor, who may be a natural or legal person, to acquire credit rights that the latter has in their favor for a determined or determinable price, in national, foreign currency, or UDIs, regardless of the date and the form in which it is paid, it being possible to agree that the factor remains obligated to respond for the punctual and timely payment of the credit rights transmitted to the factor.

Factor.- The entity that acquires the credit rights in favor of the factor.

Credit Line.- Amount of money made available to the client by the entity, for a determined period of time.

Reduced Price Purchase Option.- Agreement that allows the lessee, at their choice, to buy the rented property at a significantly low price in relation to the market value at the moment the option can be exercised. This situation allows supposing that said option will be exercised.

Payment.- Real delivery of the thing or quantity due or the provision of the service that had been agreed. Financial income from accrual arising from capitalizable lease or financial factoring operations, nor interest that is capitalized, will not be considered as payment.

Write-offs, discounts, forgiveness, bonuses, and discounts that are made to a credit or group of credits are not considered payments.

Sustained Credit Payment.- Fulfillment of payment by the borrower without delay, for the total exigible amount of principal and interest, for a minimum of three consecutive amortizations of the credit's payment scheme, or in the case of credits with amortizations that cover periods greater than 60 natural days, the payment of one exhibition.

For credit restructurings with periodic payments of principal and interest whose amortizations are less than or equal to 60 days in which the payment periodicity is modified to periods less, the number of amortizations equivalent to three consecutive amortizations of the original payment scheme of the credit must be considered. Regarding credits that remain with a single payment scheme of principal at maturity, what is established in the following paragraph 33 will be applicable.

In the case of consolidated credits, if in accordance with paragraph 77, two or more credits had originated the transfer to overdue portfolio, to determine the required amortizations, the original payment scheme of the credit whose amortizations equate to the longest term must be attended.

In all cases in the demonstration that there is sustained payment, the entity must have available to the CNBV evidence justifying that the borrower has payment capacity at the moment the restructuring or renewal is carried out to face the new conditions of the credit. The elements that must be taken into account for such effects are at least the following: the intrinsic probability of default inherent to the borrower, the guarantees granted to the restructured or renewed credit, the payment priority in front of other creditors, and the liquidity of the borrower before the new financial structure of the financing.

Regarding credits with single payment of principal at maturity, regardless of whether the payment of interest is periodic or at maturity, it is considered that there is sustained payment of the credit when any of the following scenarios occurs:

the borrower has covered at least 20% of the original amount of the credit at the moment of restructuring or renewal, or well,

the amount of accrued interest in accordance with the payment scheme for restructuring or renewal corresponding to a term of 90 days has been covered.

The advance payment of amortizations of restructured or renewed credits, distinct from those with single payment of principal at maturity, regardless of whether interest is paid periodically or at maturity, is not considered sustained payment. Such is the case of amortizations of restructured or renewed credits that are paid without having passed the natural days equivalent to the periods required in accordance with the previous paragraph 29.

Restructuring.- Is that operation that derives from any of the following situations:

expansion of guarantees that cover the credit in question, or well

modifications to the original conditions of the credit or to the payment scheme, among which are:

change of the interest rate established for the remaining term of the credit;

change of currency or unit of account;

granting of a waiting period regarding the fulfillment of payment obligations in accordance with the original terms of the credit, or

extension of the credit term.

Renewal.- Is that operation in which the balance of a credit is liquidated partially or totally, through the increase in the original amount of the credit, or well with the product coming from another credit contracted with the same entity, in which the same debtor is part, a joint obligor of said debtor, or another person who by their patrimonial links constitutes common risks.

Notwithstanding the foregoing, a credit will not be considered renewed by the disbursements made during the validity of a pre-established credit line, as long as the borrower has liquidated the totality of the payments exigible in accordance with the original conditions of the credit.

Credit Risk.- For the purposes of this criterion, it is defined as the potential loss due to the lack of payment of a borrower or counterparty in the operations carried out by the entities, including the real or personal guarantees granted to them, as well as any other mitigation mechanism used by the entities.

Unpaid Balance.- Is the result obtained by the application of the amortized cost.

Recognition and Valuation Rules

The balance to be registered in the credit portfolio will be the amount effectively granted to the borrower and, if applicable, the insurance that had been financed. To this amount, any type of interest that in accordance with the credit's payment scheme is accrued will be added.

The unpaid balance of credits denominated in VSM will be valued based on the corresponding minimum wage, registering the adjustment for the increase against a deferred credit, which will be recognized in the results of the exercise in the proportional part corresponding to a period of 12 months as interest income. In case that before concluding the 12-month period there is a modification to said minimum wage, the pending balance to amortize will be taken to the results of the exercise in the item of interest income on that date.

In cases where the collection of interest is made in advance, these will be recognized as an advance collection in the item of deferred credits and advance collections. Said collection will be amortized during the life of the credit under the straight-line method against the results of the exercise, in the item of interest income.

Credit Lines

In the case of credit lines that the entity has granted, in which not all the authorized amount is exercised, the unused part of them must be maintained in off-balance sheet accounts.

Partial Payments in Kind

Partial payments received in kind to cover amortizations (principal and/or interest) accrued or, if applicable, overdue, will be registered in accordance with what is established in criterion B-6 "Assets Adjudicated".

Capitalizable Lease Operations

In capitalizable lease operations, that is, those that meet the requirements established in criterion A-2 "Application of particular rules", in which the entity acts as lessor, this will recognize at the beginning of the contract within its credit portfolio the contractual value of the lease operation, against the cash outflow and the corresponding financial income from accrual. Said financial income from accrual will be registered as a deferred credit, which will be recognized based on the unpaid balance of the credit against the results of the exercise, in the item of interest income.

For the guarantee deposits received by the lessor, this must register the cash inflow against the corresponding liability.

At the moment the lessee obligates to adopt the reduced price purchase option, the entity must recognize its amount as part of the credits for capitalizable lease operations, against a deferred credit which will be amortized in a straight line during the remaining term of the contract. In case the purchase option is adopted at maturity, on that date the income will be recognized directly in results.

When the lessee opts to participate in the sale price of the goods to a third party, the entity will recognize the income corresponding to it at the moment of the sale against the results of the exercise as other income (expenses) from operations.

Financial Factoring Operations

At the beginning of the operation, the value of the portfolio received will be recognized in the asset against the cash outflow, the agreed aforo recognized as other accounts payable, and, if applicable, the financial income from accrual that derives from factoring operations.

The financial income from accrual referred to in the previous paragraph will be determined, if applicable, by the difference between the value of the portfolio received deducted from the aforo and the cash outflow. Said financial income from accrual must be recognized within the item of deferred credits and advance collections and amortized under the straight-line method during the life of the credit, in the item of interest income.

In the event that the operation generates interest, these will be recognized as they accrue.

The amount of advances that, if applicable, are granted to the factor will be recognized as part of financial factoring operations, within the concept of commercial credits.

Commissions Charged for the Granting of Credit

Commissions charged for the granting of credit will be registered as a deferred credit, which will be amortized against the results of the exercise as interest income, under the straight-line method during the life of the credit, except those that originate from revolving credits which must be amortized for a period of 12 months.

Regarding commissions charged for restructuring or renewal of credits, they must be added to the commissions that had originated in accordance with the previous paragraph, being recognized as a deferred credit, which will be amortized against the results of the exercise as interest income, under the straight-line method during the new term of the credit.

Commissions that are recognized after the granting of the credit, those that are generated as part of the maintenance of said credits, nor those that are charged due to credits that have not been placed, will not enter this category.

Likewise, in the case of commissions charged that originate from the granting of a credit line that has not been drawn upon, at that moment they shall be recognized as a deferred credit, which shall be amortized against the results of the period as interest income under the straight-line method for a period of 12 months. In the event that the credit line is canceled before the aforementioned 12-month period concludes, the outstanding balance to be amortized shall be recognized directly in the results of the period under the item of commissions and fees charged, on the date the line is canceled.

Associated Costs and Expenses

The costs and expenses associated with the granting of the credit shall be recognized as a deferred charge, which shall be amortized against the results of the period as an interest expense, during the same accounting period in which the income from commissions charged for the granting of the credit referred to in this section is recognized.

For the purposes of the preceding paragraph, costs or expenses associated with the granting of the credit shall be understood to be only those that are incremental and directly related to activities carried out by the entities to grant the credit, for example, the credit evaluation of the debtor, evaluation and recognition of guarantees, negotiations for the terms of the credit, preparation and processing of credit documentation and closing or cancellation of the transaction, including the proportion of compensation to employees directly related to the time invested in the development of those activities.

Any other cost or expense not included in the preceding paragraph, including those related to promotion, advertising, potential clients, administration of existing credits (follow-up, control, recoveries, etc.) and other auxiliary activities related to the establishment and monitoring of credit policies, shall be recognized directly in the results of the period as they are incurred in the corresponding item according to the nature of the cost or expense.

Commissions charged or pending collection, as well as associated costs and expenses relative to the granting of the credit, shall not form part of the credit portfolio.

Commissions and Fees Charged

Commissions and fees other than those charged for the granting of the credit shall be recognized against the results of the period in the item of commissions and fees charged, on the date they are earned. In the event that part or all of the consideration received for the charging of the commission or fee is received in advance of the earning of the related income, such advance shall be recognized as a liability.

Acquisitions of Credit Portfolio

On the date of acquisition of the portfolio, the contractual value of the acquired portfolio shall be recognized in the item of credit portfolio, according to the type of portfolio that the originator had classified; the difference that arises with respect to the acquisition price shall be recorded as follows:

when the acquisition price is less than the contractual value thereof, in the results of the period within the item of other income (expenses) of the operation, up to the amount of the preventive estimate for credit risks that, if applicable, is constituted in accordance with the indications in the following paragraph, and the excess as a deferred credit, which shall be amortized as respective collections are made, in accordance with the proportion that these represent of the contractual value of the credit;

when the acquisition price of the portfolio is greater than its contractual value, as a deferred charge which shall be amortized as respective collections are made, in accordance with the proportion that these represent of the contractual value of the credit;

when it comes from the acquisition of revolving credits, such difference shall be taken directly to the results of the period on the date of acquisition.

Preventive Estimate for Credit Risks of Portfolio Acquisitions

The entity shall constitute for any type of acquired credit against the results of the period the preventive estimate for credit risks corresponding, in accordance with what is stated in paragraphs 84 and 85, taking into account the defaults that the credit has presented since its origin.

Transfer to Past-Due Portfolio

The outstanding balance according to the payment conditions established in the credit contract shall be registered as past-due portfolio when:

it is known that the borrower is declared in commercial bankruptcy, in accordance with the Commercial Bankruptcy Law, or

its amortizations have not been fully settled in the terms originally agreed, considering for this effect the following:

if the debts consist of credits with a single payment of principal and interest at maturity and present 30 or more calendar days past due;

if the debts refer to credits with a single payment of principal at maturity and with periodic interest payments and present 90 or more calendar days past due for the respective interest payment, or 30 or more calendar days past due for the principal;

if the debts consist of credits with periodic partial payments of principal and interest, including housing credits and present 90 or more calendar days past due;

if the debts consist of revolving credits and present two monthly billing periods past due or, in the event that the billing period is different from monthly, the corresponding to 60 or more calendar days past due, and

documents for immediate collection referred to in criterion B-1 "Cash and Cash Equivalents", shall be reported as past-due portfolio at the moment such event occurs.

With respect to the maturity periods referred to in item 2 of the preceding paragraph 64, monthly periods may be used, independent of the number of days each calendar month has, in accordance with the following equivalences:

30 days one month

60 days two months

90 days three months

Likewise, in the event that the fixed term expires on a non-business day, said term shall be understood to be concluded on the first following business day.

In the case of acquisitions of credit portfolio, for the determination of the days past due and their corresponding transfer to past-due portfolio as indicated in paragraphs 64 to 66, the defaults that the borrower has presented since its origin shall be taken into account.

Restructurings and Renewals

Past-due credits that are restructured or renewed shall remain within the past-due portfolio, as long as there is no evidence of sustained payment.

Credits with a single payment of principal at maturity, regardless of whether interest is paid periodically or at maturity, that are restructured during their term or renewed at any time shall be considered as past-due portfolio, as long as there is no evidence of sustained payment, in accordance with what is established in paragraph 33 of this criterion.

Credits granted under a credit line, revolving or not, that are restructured or renewed at any time, may remain in the active portfolio provided that there are elements justifying the debtor's payment capacity. Additionally, the borrower must have:

settled the total of the interest due, and

cleared the total of the payments to which they are obligated under the contract on the date of the restructuring or renewal.

Regarding credit facilities made under a line, when they are restructured or renewed independently of the credit line that supports them, they shall be evaluated in accordance with this section attending to the characteristics and conditions applicable to the drawn or drawn facilities that are restructured or renewed. If such analysis concludes that one or more of the facilities granted under a credit line must be transferred to past-due portfolio as a result of their restructuring or renewal; the total drawn balance of the credit line shall be transferred to past-due portfolio as long as there is no evidence of sustained payment.

Active credits with characteristics different from those indicated in the preceding paragraphs 69 to 71 that are restructured or renewed, without at least 80% of the original term of the credit having elapsed, shall be considered to continue being active, only when:

the borrower has covered the total of the interest accrued on the date of the renewal or restructuring;

the borrower has covered the principal of the original amount of the credit, which on the date of the renewal or restructuring should have been covered, and

the grace period that, if any, was provided for in the original conditions of the credit has not been extended.

In the event that all the conditions described in the preceding paragraph are not met, they shall be considered as past-due from the moment they are restructured or renewed, and until such time as there is evidence of sustained payment.

When it comes to active credits with characteristics different from those indicated in the preceding paragraphs 69 to 71 that are restructured or renewed during the course of the final 20% of the original term of the credit, these shall be considered active only when the borrower has:

settled the total of the interest accrued on the date of the renewal or restructuring;

cleared the principal of the original amount of the credit, which on the date of the renewal or restructuring should have been covered, and

cleared 60% of the original amount of the credit.

Active credits with periodic partial payments of principal and interest that are restructured or renewed on more than one occasion, may remain in the active portfolio if in addition to having elements justifying the debtor's payment capacity, the borrower complies with the conditions established in paragraphs 72 or 74 above, as applicable.

In the event that through a restructuring or renewal various credits granted by the same entity to the same borrower are consolidated, each of the consolidated credits shall be analyzed as if they were restructured or renewed separately, and if such analysis concludes that one or more of said credits would have been transferred to past-due portfolio as a result of said restructuring or renewal, then the total balance of the consolidated credit shall be transferred to past-due portfolio.

The provisions in paragraphs 69 to 77 shall not apply to those restructurings that on the date of the operation present payment compliance for the total amount of principal and interest due and only modify one or more of the following original conditions of the credit:

Guarantees: only when they imply the expansion or substitution of guarantees with others of better quality.

Interest Rate: when the agreed interest rate is improved for the borrower.

Currency: provided that the rate corresponding to the new currency is applied.

Payment Date: only in the event that the change does not exceed or modify the periodicity of the payments. In no case shall the change in the payment date allow for the omission of payment in any period.

Suspension of Interest Accrual

The accrual of accrued interest on credit operations shall be suspended at the moment the outstanding balance of the credit is considered past-due. Likewise, the amortization in the results of the period of financial income to be accrued, as well as the amount corresponding to the purchase option of credits by capitalizable lease operations, shall be suspended at the moment the outstanding balance of the credit is considered past-due.

To credits that contractually capitalize interest to the amount of the debt, the suspension of interest accrual established in the preceding paragraph shall be applicable.

As long as the credit remains in the past-due portfolio, the control of accrued interest or financial income shall be carried out in off-balance sheet accounts. In the event that such interest or financial income past-due is collected, it shall be recognized directly in the results of the period in the item of interest income, canceling in the case of capitalizable lease or financial factoring operations the corresponding deferred credit.

Unpaid Accrued Interest

With respect to unpaid accrued interest or financial income corresponding to credits that are considered as past-due portfolio, an estimate shall be created for an amount equivalent to the total of these, at the moment of the transfer of the credit as past-due portfolio.

Regarding past-due credits in which their restructuring agrees to the capitalization of unpaid accrued interest previously registered in off-balance sheet accounts, the entity shall create an estimate for 100% of said interest. The estimate may be canceled when there is evidence of sustained payment.

Preventive Estimate for Credit Risks

The amount of the preventive estimate for credit risks shall be determined based on the different methodologies established or authorized by the CNBV for each type of credit through general provisions, as well as by additional estimates required in various regulations and those ordered and recognized by the CNBV, and shall be recognized in the results of the period of the corresponding period.

The additional estimates recognized by the CNBV referred to in the preceding paragraph are those constituted to cover risks that are not provided for in the different methodologies of credit portfolio rating, and over which prior to their constitution, the entities shall inform the CNBV of the following:

origin of the estimates;

methodology for their determination;

amount of estimates to be constituted, and

time estimated to be necessary.

Write-offs, Eliminations and Recoveries of Credit Portfolio

The entity shall periodically evaluate if a past-due credit should remain in the balance sheet, or rather, be written off. Such write-off shall be carried out by canceling the outstanding balance of the credit against the preventive estimate for credit risks. When the credit to be written off exceeds the balance of its associated estimate, before effecting the write-off, said estimate shall be increased up to the amount of the difference.

In addition to what is established in the preceding paragraph, the entity may opt to eliminate from its assets those past-due credits that are provisioned at 100% in accordance with what is stated in paragraphs 84 and 85, even if they do not meet the conditions to be written off. For such purposes, the entity shall cancel the outstanding balance of the credit against the preventive estimate for credit risks.

Any recovery derived from previously written-off or eliminated credits in accordance with the two preceding paragraphs, shall be recognized in the results of the period within the item of preventive estimate for credit risks.

Discounts, Forgiveness, Bonuses and Discounts on the Portfolio

Discounts, forgiveness, bonuses and discounts, that is, the amount forgiven of the payment of the credit in partial or total form, shall be registered charged to the preventive estimate for credit risks. In the event that the amount of these exceeds the balance of the estimate associated with the credit, estimates shall previously be constituted up to the amount of the difference.

Credits Denominated in Foreign Currency, in VSM and in UDIS

For the case of credits denominated in foreign currency, in VSM and in UDIS, the estimate corresponding to said credits shall be denominated in the currency or unit of account of origin that corresponds.

Cancellation of Excesses in the Preventive Estimate for Credit Risks

When the balance of the preventive estimate for credit risks has exceeded the amount required in accordance with paragraphs 84 and 85, the differential shall be canceled in the period in which such changes occur against the results of the period, affecting the same concept or item that originated it, that is, the item of preventive estimate for credit risks.

Assignment of Credit Portfolio

For credit portfolio assignment operations in which the conditions established to derecognize a financial asset in accordance with criterion C-1 "Recognition and Derecognition of Financial Assets" are not met, the entity shall conserve in the asset the amount of the assigned credit and, recognize in the liability the amount of resources coming from the assignee.

In cases where the assignment of credit portfolio is carried out, in which the conditions to derecognize a financial asset established in criterion C-1 are met, the estimate associated with it shall be canceled.

Transfer to Active Portfolio

Past-due credits in which the pending payment balances (principal and interest, among others) are fully settled, or, which being restructured or renewed credits, comply with the sustained payment of the credit, shall be returned to the active portfolio.

Presentation Standards

Balance Sheet

the portfolio shall be grouped into active and past-due, according to the type of credit, that is, unrestricted credits and restricted credits, whether commercial, consumer or housing credits, and in turn, classified according to the nature of the operation;

the preventive estimate for credit risks shall be presented in a separate item, subtracting from the item of credit portfolio;

the financial asset representing the financing granted to the assignor referred to in criterion C-2 "Securitization Operations" shall be presented as part of the commercial portfolio;

the effect by revaluation of credits in VSM referred to in paragraph 41 shall be presented forming part of the credit portfolio;

the amount of credits by capitalizable lease and financial factoring operations, both active and past-due, shall be presented net of the deferred credits referred to in paragraphs 45 and 50 respectively, in the case of financial factoring operations it shall be presented net of the corresponding allocation;

interests charged in advance shall be presented together with the portfolio that gave rise to them;

the deferred charge that in its case had been generated by the acquisition of portfolio shall be presented in the item of other assets;

the purchase option at reduced price, the excess that in its case had originated by the acquisition of portfolio referred to in item a) of paragraph 62, as well as commissions that were received in advance of the earning of the related income, shall be presented in the item of deferred credits and advance collections;

commissions charged for the granting of the credit shall be presented net of associated costs and expenses, being presented in the item of other assets, or of deferred credits and advance collections, as appropriate to their debtor or creditor nature;

the liability for deposit guarantees shall be presented in the item of other accounts payable;

within the item of other accounts payable, if its relative importance warrants it, the creditor balances of credits shall be presented, for example when there is a balance in favor coming from revolving credits because the borrower made a payment greater than the due;

the liability derived from credit portfolio assignment operations shall be presented in the item of bank loans and from other organisms;

it shall be presented in off-balance sheet accounts, in the item named credit commitments, the unused amount of the credit lines that the entity had granted, and

it shall be presented in off-balance sheet accounts in the item of unpaid accrued interest derived from past-due credit portfolio, the amount of unpaid accrued interest derived from credits that remain in past-due portfolio, as well as unpaid accrued financial income.

Income Statement

Interest income shall be grouped as accrued interest, the amortization of interest charged in advance, the accrual of deferred credit by revaluation of credits in VSM, the financial income accrued in capitalizable lease and financial factoring operations, the amortization of commissions charged for the granting of the credit, the exchange gain and the result by revaluation of UDIS (creditor balance). Likewise, interest expenses shall be grouped as the amortization of associated costs and expenses for the granting of the credit, as well as the exchange loss and the result by revaluation of UDIS (debtor balance).

It shall be presented as a specific item, immediately after the financial margin, the preventive estimate for credit risks and the exchange gain or loss, as well as the result by revaluation of UDIS and VSM, that originate from the estimate denominated in foreign currency, UDIS or in VSM, respectively.

Commissions other than those relative to the granting of the credit shall be presented in the item of commissions and fees charged.

The amortization of the deferred credit or the deferred charge or in its case the application referred to in item c) of paragraph 62, derived from the acquisitions of credit portfolio, of the difference between the contractual value and the acquisition price up to the amount of the estimate for credit risks referred to in item a) of paragraph 62, as well as the gain or loss derived from the assignment of credit portfolio shall be presented in the item of other income (expenses) of the operation, as appropriate.

The amortization of the deferred credit generated by the purchase option at a reduced price, the purchase option when adopted at maturity, as well as the income from the participation in the sale of the goods in capitalizable lease to a third party shall be presented in the item of other income (expenses) of the operation.

Disclosure Standards

100

Through notes to the financial statements, the following shall be revealed:

main policies and procedures established for the granting, acquisition, assignment, control and recovery of credits, as well as those relative to the evaluation and follow-up of credit risk;

main policies for classifying the portfolio as restricted, as well as a brief description of the reasons for it;

policies and procedures established to determine credit risk concentrations;

d) breakdown of the total balance of commercial credits, identifying them as problematic and non-problematic, both current and overdue;

e) breakdown of the current restricted and unrestricted portfolio and overdue by type of credit (business or commercial activity, financial entities, government entities, consumer, medium and residential and social interest), distinguishing those denominated in national currency, foreign currency, UDIS and in VSM;

identification by type of credit (business or commercial activity, financial entities, government entities, consumer, medium and residential and social interest), of the balance of the overdue portfolio from the date it was classified as such, in the following terms:

from 1 to 180 calendar days, from 181 to 365 calendar days, from 366 calendar days to 2 years and more than 2 years overdue;

in aggregate, the percentage of concentration and main characteristics of the portfolio by sector, region or economic group, understood as the latter to be groups of natural and legal persons that due to their property or liability links constitute common risks;

cumulative cost borne by the entity, as well as the balance of the portfolio subject to support programs, identifying it by type of program;

the amounts of commissions and costs and expenses recognized for the granting of credit; weighted average term for amortization, description of the concepts that make up the commissions for the origination of such credits and the costs and expenses associated with such commissions, as well as elements that justify their direct relationship with the granting of credit;

explanation of the main variations in the overdue portfolio identifying, among others:

restructurings, renewals, adjudications, haircuts, write-offs, transfers to the current portfolio, as well as from the current portfolio;

brief description of the methodology for determining preventive estimates for credit risks;

classification by risk degree, amount of the portfolio, as well as of the preventive estimate for credit risks, disaggregated according to the stratification contained in the methodologies for the classification of the credit portfolio and by type of credit (business or commercial activity,

financial entities, government entities, consumer and housing). Likewise, the amount of the portfolio exempt from such classification must be disclosed;

101

balance of the preventive estimate for credit risks, breaking it down according to the methodologies for the classification of the credit portfolio, as well as by type of credit (business or commercial activity, financial entities, government entities, consumer and housing);

movements that have been made to the preventive estimate for credit risks during the exercise for its creation, write-offs, cancellations, haircuts, forgiveness,

bonuses, discounts and adjudications, among others;

amount derived from the cancellation of the preventive estimate for credit risks, and the reasons that motivated such cancellation;

amount and origin of the estimates recognized by the CNBV, as well as the methodology used for their determination;

amount of overdue credits that pursuant to paragraph 87 were eliminated from assets, breaking down those granted to related parties.

the main policies and procedures regarding the granting of restructurings and renewals,

including restructurings or renewals that consolidate various credits granted by the same entity to the same borrower, as well as the elements taken into account to evidence sustained payment;

total cumulative amount of restructured or renewed by type of credit (business or commercial activity, financial entities, government entities, consumer and housing)

distinguishing those originated in the exercise. Each of these amounts must be broken down into:

overdue credits that were restructured or renewed;

ii.

restructurings or renewals that were transferred to overdue portfolio having been

restructured or renewed, in compliance with paragraph 69;

iii.

restructured or renewed credits that remained in current portfolio pursuant to paragraphs 70 to 76;

iv.

consolidated credits that as a result of a restructuring or renewal were

transferred to overdue portfolio, pursuant to paragraph 77, and

restructured credits to which the criteria regarding transfer to overdue portfolio were not applied based on paragraph 78.

amount and nature of additional guarantees and concessions granted in restructured credits;

total amount of the acquired credit portfolio, as well as the estimates related to said

portfolio;

total amount of credit portfolio assignments that the entity has made;

amount of recoveries of previously written-off or eliminated credit portfolio;

breakdown of interest and commissions by type of credit (business or commercial activity, financial entities, government entities, consumer and housing);

amount of interest income that was recognized in the credit in question, at the time

of the capitalization referred to in paragraph 83;

amount of credit lines registered in off-balance sheet accounts, and

aa)

brief description of the effects on the credit portfolio derived from the application of the different

methodologies established through general provisions or authorized by the CNBV

for each type of credit, as well as additional estimates required in various

regulations and those ordered and recognized by the CNBV.

D-2 STATEMENT OF RESULTS

Background

Financial information must meet, among other things, the purpose of reporting the results of the

operations of a specific entity in a defined accounting period, requiring the establishment,

through specific criteria, of the object and general structure that the statement of results must have.

Objective and scope

This standard aims to establish the general characteristics and structure that the

statement of results must have. Whenever this financial statement is prepared, entities must adhere to the

structure and guidelines provided in this standard. Likewise, minimum guidelines are established with the

purpose of homogenizing the presentation of this financial statement among entities, and in this way,

facilitating its comparability.

Objective of the statement of results

The statement of results aims to present information on the operations developed by the

entity, as well as other economic events that affect it, which do not necessarily come from decisions

or transactions derived from its Governing Body, during a specific period.

Consequently, the statement of results will show the increase or decrease in the equity of the

entities, attributable to the operations carried out by them, during a set period.

The provisions of the previous paragraph are not applicable to those items of the entity that by express provision

must be incorporated into accounting equity, other than those coming from the statement of results, such

as those that make up comprehensive income (result from valuation of securities available for sale,

result from valuation of cash flow hedging instruments, accumulated effect from translation,

as well as the result from holding non-monetary assets). The presentation of the increases or

decreases in equity derived from these items is specified in standard D-3 " Statement of

changes in accounting equity " .

Concepts that make up the statement of results

In a broad context, the concepts that make up the statement of results are: income, costs, expenses,

gains and losses, considering as such the concepts thus defined in NIF A-5 " Basic elements of financial statements " of the NIF.

Structure of the statement of results

The minimum items that the statement of results must contain in entities are the following:

financial margin;

financial margin adjusted for credit risks;

operating result;

result before discontinued operations, and

net result.

Presentation of the statement of results

The items described above correspond to the minimum required for the presentation of the statement

of results, however, entities must break down either in the cited statement of results, or

through notes to the financial statements, the content of the concepts they consider necessary in order to

show the results of the same for the user of financial information. At the end of the

present standard, the statements of results prepared with the minimum items referred to in the

previous paragraph are shown.

Characteristics of the items that make up the structure of the statement of results:

Financial Margin

The financial margin must be composed of the difference between interest income and interest

expenses, increased or decreased by the result from net monetary position related to

items of the financial margin (in the case of an inflationary environment).

In the case of Development Entities, the difference from the sale of land inventory (net)

(income from sale of land inventory reduced by discounts, returns and rebates on

sales), and the cost of sale of land inventory will be included.

Interest Income

Interest income is considered to be the returns generated by the credit portfolio,

contractually called interest, the amortization of interest collected in advance, the income

financial accrued in capitalizable leasing operations, as well as by premiums and

interests from other financial operations typical of entities such as deposits in entities

financial, margin accounts, investments in securities and repo operations, as well as premiums by

placement of debt.

Commissions charged for the granting of credit are also considered interest income, as

well as dividends from equity instruments.

Likewise, adjustments for valuation derived from items

denominated in UDIS or in some other general price index, the amortization of deferred credit by

valuation of credits in VSM, as well as the gain on exchange, are considered as interest income, provided that such items

come from positions related to income or expenses that are part of the financial margin.

Interest collected relative to credits previously classified as overdue portfolio, whose accumulation

is carried out in accordance with its collection, according to what is established in

standard B-5 " Credit portfolio " , are part of this item.

Interest Expenses

Interest expenses are considered to be premiums, discounts and interest derived from traditional

collection, bank loans and from other organisms as well as issuance and discount expenses by

placement of debt.

Likewise, adjustments for valuation derived from items

denominated in UDIS or in some other general price index, as well as the loss on exchange, are considered interest expenses, provided that

such concepts come from positions related to expenses or income that are part of the

financial margin.

Likewise, the amortization of costs and expenses associated with the

granting of credit is considered as interest expenses.

Result from net monetary position (financial margin)

The result from net monetary position referred to in paragraph 9, will be that which originates from items

whose income or expenses are part of the financial margin (in the case of an inflationary environment).

The result from net monetary position originating from items that are

registered directly in the accounting equity of the entity will not be considered in this item, since said result must be presented

in the corresponding equity item.

Financial margin adjusted for credit risks

It corresponds to the financial margin deducted by the amounts related to the movements of the

preventive estimate for credit risks in a specific period.

Operating Result

It corresponds to the financial margin adjusted for credit risks, increased or decreased by:

commissions and fees charged and paid,

the result from intermediation,

other operating income (expenses) other than interest income or expenses that have

been included within the financial margin, and

administration and promotion expenses.

Commissions and fees charged and paid are those generated by credit operations other than

those indicated in paragraphs 12 and 17, loans received, debt placement and by the provision of

services among others, of resource administration and by the granting of guarantees.

Likewise, the result from intermediation is considered as part of the

operating result, understood as the latter to be the following concepts:

result from fair value valuation of securities for trading, derivatives for trading or hedging purposes, of securities available for sale in fair value hedges,

as well as sold collateral;

the impairment loss or effect from reversal of impairment of securities and derivatives;

result from valuation of currencies and minted precious metals;

transaction costs for purchase and sale of securities for trading and derivatives;

result from purchase and sale of securities and currencies, and

the result from cancellation of financial assets and liabilities coming from derivatives,

including the result from purchase and sale of said derivatives, as well as the result from sale of

collateral received.

Additionally, other operating income (expenses) are also recognized within the

operating result, considered as such to be the ordinary income and expenses referred to in NIF A-5 and

that are not included in the previous concepts, nor are they part of administration and promotion expenses, such as:

recoveries of taxes and excess in benefits to receive in securitization operations,

result from acquisition or assignment of portfolio,

financial cost for capitalizable leasing,

impacts on the estimate for uncollectibility or difficult collection,

losses,

dividends from other permanent investments and permanent investments in

associates available for sale,

donations,

the impairment loss or effect from reversal of impairment of real estate, goodwill,

other long-term assets in use or available for sale and other assets,

the loss from adjudication of assets, the result from the valuation of adjudicated assets, the

result from sale of adjudicated assets, as well as the estimate for the loss of value in adjudicated assets,

result from sale of properties, furniture and equipment, and

result from valuation of the asset (or liability) for administration of transferred financial assets,

as well as benefits to receive in securitization operations.

In addition to the previously mentioned items, the result from net monetary position, in the case of an

inflationary environment, and the result from exchange generated by items not related to the financial margin of the entities will be presented in the item of other operating income (expenses).

Likewise, subsidies that entities receive from the

Federal Government will be part of the operating result.

Finally, administration and promotion expenses must be considered within the

operating result, which must include all types of direct benefits granted to employees of the

entity, fees, rents, promotion expenses, technology expenses, depreciations and amortizations, the

net cost of the period derived from employee benefits, as well as taxes and duties to which they are subject.

Result before discontinued operations

In the case of Development Entities, it will be the operating result, incorporating the participation in

the result of unconsolidated subsidiaries, associates and joint ventures.

Net Result

In the case of Development Entities, it corresponds to the result before discontinued operations

increased or decreased as appropriate, by discontinued operations referred to in Bulletin C-15 " Impairment in the value of long-lived assets and their disposal " of the NIF.

In the case of Infonacot, it corresponds to the operating result increased or decreased as

appropriate, by discontinued operations referred to in Bulletin C-15 of the NIF.

Consolidated statement of results

When the consolidated statement of results of Development Entities is presented, the segregation of the

portion of the net result corresponding to the non-controlling interest will be presented as the last

item of said financial statement.

Disclosure standards

The following must be disclosed in notes to the financial statements:

composition of the financial margin, identifying by type of currency interest income and

interest expenses, distinguishing them by the type of operation from which they come (investments

in securities, repos, credit portfolio, traditional collection, as well as bank loans and from

other organisms, among others);

in the case of credit portfolio, in addition, the amount of interest income by

type of credit (business or commercial activity, financial entities,

government entities, consumer, housing, among others) must be identified;

composition of the result from intermediation, identifying the result from fair value valuation and, if applicable, the result from purchase and sale, according to the type of operation of the

from which they come (investments in securities as well as sold collateral);

amount of commissions charged disaggregated by the main products managed by the

entity, and

the amounts of commissions and costs and expenses incurred for the granting of credit

recognized in results; weighted average term for amortization; description of the

concepts that make up the commissions for initial origination and restructuring of such credits and

the costs and expenses associated with such commissions, as well as elements that justify their direct

relationship with the granting of credit.

NAME OF THE DEVELOPMENT ENTITY

ADDRESS

STATEMENT OF RESULTS OF THE ___________________ TO _________________ OF ___

EXPRESSED IN CURRENCY OF PURCHASING POWER OF ________ OF _______

( 1 )

(Numbers in thousands of pesos)

Interest income

Sale of land inventory (net)

Interest expenses

Cost of sale of land inventory

Result from net monetary position (financial margin)

" _____

FINANCIAL MARGIN

Preventive estimate for credit risks

" _____

FINANCIAL MARGIN ADJUSTED FOR CREDIT RISKS

Commissions and fees charged

Commissions and fees paid

Result from intermediation

Other operating income (expenses)

Subsidies (2)

Administration and promotion expenses

" _____

OPERATING RESULT

Participation in the result of unconsolidated subsidiaries, associates and

joint ventures

RESULT BEFORE DISCONTINUED OPERATIONS

Discontinued operations

" _____

NET RESULT

$ _____

The concepts appearing in this statement are shown in an enumerative but not exhaustive manner.

( 1 )

This line will be omitted if the economic environment is "non-inflationary".

( 2 )

This line will be used only when income is obtained from this concept.

A-2 APPLICATION OF PARTICULAR STANDARDS

Objective and scope

The purpose of this standard is to specify the application of particular standards of the NIF, as well as

clarifications to them.

The subject matter of this standard is:

the application of some of the particular standards made known in the NIF, and

the clarifications to the particular standards contained in the NIF.

Financial Information Standards

In accordance with what is established in standard A-1 " Basic scheme of the set of accounting standards

applicable to Fovissste and Infonavit " , Fovissste and Infonavit will observe, until there is no express pronouncement

by the CNBV, the particular standards contained in the bulletins or NIFs that are detailed below, or in the NIFs that replace or modify them:

NIF B Series " Standards applicable to financial statements as a whole "

Accounting changes and corrections of errors

................................................................. B-1

Financial information at interim dates

.................................................................. B-9

Effects of inflation

.......................................................................................... B-10

Events after the date of the financial statements

.................................................. B-13

Determination of fair value

............................................................................ B-17

NIF C Series " Standards applicable to specific concepts of financial statements "

Accounts receivable

.............................................................................................. C-3

Prepayments

............................................................................................... C-5

Property, plant and equipment

................................................................................... C-6

Intangible assets

............................................................................................... C-8

Provisions, contingencies and commitments

.................................................................... C-9

Equity capital

................................................................................................ C-11

Financial instruments with characteristics of liability and equity

....................................... C-12

Impairment in the value of long-lived assets and their disposal

.................................... C-15

Impairment of financial instruments receivable

........................................................... C-16

Obligations associated with the withdrawal of property, plant, and equipment

.................................... C-18

Financial instruments payable

........................................................................... C-19

Financial instruments to collect principal and interest

.................................................... C-20

Series NIF D "Standards applicable to income determination issues"

Revenue from contracts with customers

............................................................................ D-1

Costs from contracts with customers

.............................................................................. D-2

Employee benefits

..................................................................................... D-3

Leases

.................................................................................................. D-5

Capitalization of comprehensive financing result

....................................................... D-6

Additionally, Fovissste and Infonavit shall observe the NIFs issued by the CINIF on topics not foreseen in the accounting criteria for Fovissste and Infonavit, provided that:

they are in force on a definitive basis;

they are not applied in advance;

they do not contravene the philosophy and general concepts established in the accounting criteria for Fovissste and Infonavit, and

there is no express pronouncement by the CNBV, among others, regarding clarifications to the particular standards contained in the NIF issued, or regarding its non-applicability.

Clarifications to the particular standards contained in the NIFs

Taking into consideration that Fovissste and Infonavit carry out specialized operations, it is necessary to establish clarifications that adapt the particular standards for recognition, valuation, presentation, and, where applicable, disclosure, established by the CINIF. In virtue of this, Fovissste and Infonavit, observing what is established in the preceding paragraph, shall adhere to the following:

B-9 Financial information at interim dates

The provisions of NIF B-9 must be applicable to the financial information issued at interim dates, including the quarterly information that must be published or disseminated through the electronic page on the worldwide network known as Internet corresponding to Fovissste or Infonavit, in accordance with the general provisions applicable to the financial information of Fovissste and Infonavit published by the CNBV.

For the purposes of disclosing the information issued at interim dates, Fovissste and Infonavit shall observe the provisions regarding the disclosure of financial information contained in criterion A-3 "Application of general standards".

B-10

Effects of inflation

Determination of the monetary position

In the case of an inflationary environment, based on what is stated by NIF B-10, the following shall be attended to:

Fovissste and Infonavit shall disclose the initial balance of the main monetary assets and liabilities used to determine the monetary position of the period, differentiating, where applicable, those that affect from those that do not affect the financial margin.

Price index

Fovissste and Infonavit shall use the value of the Investment Unit (UDI) as the price index.

Result from monetary position

The result from monetary position (REPOMO) that has not been presented directly in equity nor capitalized in terms of what is established in NIF B-10, must be presented in the statement of results in a specific item within the financial margin when it originates from financial margin items; otherwise, it will be presented within the item of other operating income (expenses).

The REPOMO related to items whose valuation adjustments are recognized in equity shall be presented in the corresponding equity account according to its nature; for example, the REPOMO attributable to the valuation effect of available-for-sale securities shall be presented in the similar item.

C-3

Accounts receivable

Scope

For the purposes of Bulletin C-3, accounts receivable derived from the operations referred to in criteria B-3 "Credit Portfolio" and B-8 "Receivables Rights", issued by the CNBV, shall not be included, since the applicable standards for recognition, valuation, presentation, and disclosure are contemplated therein.

Loans to officials and employees

Interest derived from loans to officials and employees shall be presented in the statement of results in the item of other operating income (expenses).

Accounts receivable from employers, Entities, and Departments

The amount derived from the Contributions, and where applicable, Discounts, referred to in criterion B-6 "Contributions in favor of workers", when the right to collect arises in terms of the applicable legislation, Fovissste and Infonavit shall initially recognize an account receivable with the following counterparties:

increasing the liability in the case of Contributions, attending to what is stated in criterion B-6 "Contributions in favor of workers", or

decreasing the credit portfolio in the case of Discounts, attending to what is established in criterion B-3 "Credit Portfolio", and, where applicable, increasing the liability for the obligation to deliver resources from those credits ceded to financial entities.

The account receivable referred to in the preceding paragraph shall be reduced by the amounts effectively received by Fovissste or Infonavit from the Entity, Department, or Employer, derived from the Contributions and Discounts. In the case of Infonavit, late interest, fines, updates, or surcharges, and any other accessory generated from the said account receivable, shall be recognized within the results of the period in the item of other operating income (expenses).

The following shall be disclosed through notes to the financial statements:

the collection actions carried out in the recovery of the account receivable indicated in the two preceding paragraphs;

breakdown of the account receivable, distinguishing the amount corresponding to Contributions and Discounts. Likewise, the age of the balance shall be disclosed according to the following timeframes:

from 1 to 180 calendar days, from 181 to 365 calendar days, from 366 calendar days to 2 years, and more than 2 years;

in the case of Discounts, the percentage they represent of the total credit portfolio, and

amount of the estimation for uncollectibility or difficult collection constituted in terms of the following paragraph 19.

Estimation for uncollectibility or difficult collection

The estimation for uncollectibility or difficult collection corresponding to items directly related to the credit portfolio such as litigation expenses, shall be determined by applying the same risk percentage assigned to the associated credit, in accordance with what is established in criterion B-3.

The estimation for uncollectibility or difficult collection corresponding to the account receivable referred to in the preceding paragraph 15, shall be constituted for the total amount of the debt 90 calendar days following its initial recognition.

For the loans granted by Fovissste and Infonavit to their officials and employees, for receivables rights, as well as for those accounts receivable other than those indicated in the two preceding paragraphs and those in paragraph 22, relating to identified debtors whose maturity is agreed from origin to a term greater than 90 calendar days, they shall create, where applicable, an estimation that reflects their degree of uncollectibility.

Such estimation shall be obtained by conducting a study that serves as a basis to determine the different future quantifiable events that could affect the amount of those accounts receivable, thereby showing the estimated recovery value of the enforceable rights.

Regarding operations with immediate collection documents not collected referred to in criterion B-1 "Cash and Cash Equivalents", 15 calendar days following the date on which they have been transferred as diverse debtors, these shall be classified as overdue debts and their estimation shall be constituted simultaneously for the total amount thereof.

The estimation of accounts receivable not included in paragraphs 18, 19, 20, and 22 above, shall be constituted for the total amount of the debt according to the following timeframes:

60 calendar days following their initial registration, when they correspond to unidentified debtors, and

90 calendar days following their initial registration, when they correspond to identified debtors.

No estimation for uncollectibility or difficult collection shall be constituted in the following cases:

balances in favor of taxes;

creditable value added tax;

liquidating accounts, and

the advances that the assignor dedicates to the vehicle in securitization operations, when the guidelines indicated in criterion C-2 "Securitization" are met.

C-9

Liabilities, provisions, contingent assets and liabilities, and commitments

Scope

For the purposes of Bulletin C-9, liabilities related to the operations referred to in criterion B-6 "Contributions in favor of workers" are not included, as these are contemplated in said criterion.

Bank loans and from other organisms or loans or support from the Federal Government and other organisms

Liabilities arising from the Federal Government and other organisms shall be recorded taking as a base the contractual value of the obligation, recognizing accrued interest directly in the results of the period as an interest expense.

The total amount of loans or support from the Federal Government and other organisms shall be disclosed in notes to the financial statements, indicating the maturity terms, guarantees, and average weighted rates to which, where applicable, they are subject.

In the case of credit lines received in which not the entire authorized amount is exercised, the unused portion thereof shall not be presented in the balance sheet. However, the unused amount shall be disclosed through notes to the financial statements, attending to what is established in criterion A-3, regarding the disclosure of financial information.

C-11

Equity

For the purposes of this NIF, equity shall be understood as accounting equity, which is divided into a) contributed equity, which is represented by contributions made in accordance with applicable legislation, and b) earned equity, which corresponds to reserves, results of previous periods, and items that form part of comprehensive income.

At the balance of the balance sheet, the historical amount of the contributions referred to in the preceding paragraph shall be disclosed.

D-3

Employee benefits

The liability generated by employee benefits shall be presented in the balance sheet within the item other accounts payable.

Additionally, through notes to the financial statements, the identification of obligations for employee benefits shall be disclosed in accordance with the following:

in the case of Fovissste in the short term, and

in the case of Infonavit in the short and long term.

Prepayments arising from the application of this NIF shall form part of the item of other assets.

D-5 Leases

Capitalizable leases

Requirements

For the purposes of the requirements established in paragraph 33 of Bulletin D-5, it shall be understood that the lease period is substantially equal to the remaining useful life of the leased asset if such contract covers at least 75% of its useful life. Likewise, the present value of minimum payments shall be substantially equal to the market value of the leased asset if such present value constitutes at least 90% of that value.

Operating leases

Accounting for the lessee

For presentation purposes, the lessee shall include in the balance sheet the lease liability as part of the item of various creditors and other accounts payable, and in the statement of results the lease expense in the item of administration and promotion expenses.

D-6

Capitalization of comprehensive financing result

For the purposes of this NIF, Comprehensive Financing Result shall be understood as the following concepts: a) interest; b) result from monetary position, c) gain or loss on exchange, and d) other costs associated with what is referred to in NIF D-6. These concepts may be capitalized to qualifying assets, instead of being recognized in the statement of results as interest income or expense or other operating income (expenses), as appropriate, based on what is established in the said NIF D-6.

The foregoing shall not be applicable for qualifying assets in which a specific accounting criterion issued by the CNBV establishes a different treatment.

B-3 CREDIT PORTFOLIO

Objective and scope

This criterion aims to define the particular standards relative to the recognition, valuation, presentation, and disclosure in the financial statements, of the credit portfolio of Fovissste and Infonavit.

This criterion also includes the accounting guidelines relative to the preventive estimation for credit risks.

The following are not the object of this criterion:

The establishment of the methodology for the qualification and constitution of the preventive estimation for credit risks.

The accounting standards relative to values issued in series or in mass, which are quoted on recognized markets and which Fovissste and Infonavit maintain in their own position, even if they are linked to credit operations, being matter of criterion B-2 "Investments in securities".

The receivables rights that Fovissste and Infonavit acquire which are in the situations foreseen in criterion B-8 "Receivables Rights".

Definitions

Borrower.- The natural or legal person, or trust to whom a credit is granted.

Portfolio Qualification.- Methodology used by Fovissste and Infonavit to recognize credit and extension risks associated with credits granted by them.

Payment Capacity.- For the purposes of this criterion, payment capacity shall be understood to exist when the conditions established for that effect in the General Provisions applicable to development agencies and development entities are met.

Troubled Portfolio.- Those commercial credits for which it is determined that, based on current information and facts as well as on the credit review process, there is a considerable probability that they cannot be recovered in their entirety, both their principal and interest components, in accordance with the terms and conditions originally agreed. Both the current portfolio and the overdue portfolio are susceptible to being identified as troubled portfolio.

Portfolio on Extension.- It is integrated by all those housing credits granted by Infonavit or Fovissste, and which in terms of the Law of the National Housing Fund for Workers and the Law of the Institute for Social Security and Services for State Workers, have a valid extension in the payment of amortization.

Overdue Portfolio.- That composed of credits whose borrowers are declared in commercial bankruptcy, or whose principal, interest, or both, have not been liquidated in the terms originally agreed, considering for this effect what is established in paragraphs 53 to 69 of this criterion.

Current Portfolio.- That integrated by credits that are up to date in their payments of both principal and interest, the portfolio on extension, as well as by those credits with principal or interest payments overdue that have not been located in the situations foreseen in this criterion to consider them as overdue, and those that having been classified as overdue portfolio are restructured or renewed and have evidence of sustained payment in accordance with what is established in this criterion.

Write-off.- It is the cancellation of the credit when there is evidence that formal collection efforts have been exhausted or the practical impossibility of recovering the credit has been determined.

Commission for the granting of the credit.- Exists when Fovissste or Infonavit and the borrower have agreed from the date the credit was arranged, the collection of a monetary fee for recovery of the costs or expenses incurred to grant the credit regardless of the moment in which the disbursements thereof are made. Likewise, commissions charged for restructuring or renewal of credits are considered part of these commissions.

Consolidation of credits.- It is the integration into a single credit of two or more credits granted by Fovissste and Infonavit to the same borrower.

Amortized Cost.- For the purposes of this criterion, it is the valuation method that integrates the amount effectively granted to the borrower, adjusted by accrued interest that have been recognized in accordance with what is established in this criterion, the insurance, where applicable, that had been financed, the collections of principal and interest, as well as by discounts, forgiveness, bonuses, and discounts that have been granted.

Credit.- Asset resulting from the financing granted by Fovissste and Infonavit based on what is established in the applicable legal provisions.

Housing Credits.- The direct credits denominated in national currency or in minimum wage multiples (VSM), as well as the interest they generate, granted to natural persons and destined for the acquisition, construction, remodeling, or improvement of housing without commercial speculation purpose, which have a mortgage guarantee on the borrower's housing, including those backed by the savings of the borrower's housing sub-account; likewise, credits granted for such effects to former employees of Fovissste and Infonavit are included, as well as for the payment of liabilities acquired under any of the aforementioned concepts.

Commercial Credits.- The direct or contingent credits, including bridge credits, denominated in national currency or in VSM, as well as the interest they generate, granted by Infonavit to legal persons or natural persons with business activity and destined for their commercial or financial business.

Preventive Estimation for Credit Risks.- Charge made against the results of the period that measures that portion of the credit estimated to have no viability for collection.

Credit Line.- Amount of money made available to the client by Fovissste and Infonavit, for a determined period of time.

Payment.- Real delivery of the thing or quantity owed or the provision of the service that had been agreed. Interest that is capitalized shall not be considered as payment.

Write-offs, discounts, forgiveness, bonuses, and discounts made to a credit or group of credits are not considered payments.

Sustained Credit Payment.- Borrower's payment compliance without delay, when the borrower has covered without delay, the total required amount of principal and interest, as a minimum of one amortization in credits under the Ordinary Amortization Regime (ROA) and three amortizations for credits under the Special Amortization Regime (REA).

In the case of commercial credits, sustained payment shall be considered to exist when the borrower complies without delay, for the total required amount of principal and interest, as a minimum of three consecutive amortizations of the credit's payment scheme, or in the case of credits with amortizations covering periods greater than 60 calendar days, the payment of one installment.

For credit restructurings with periodic payments of principal and interest whose amortizations are less than or equal to 60 days in which the payment periodicity is modified to shorter periods, the number of amortizations equivalent to three consecutive amortizations of the original payment scheme of the credit shall be considered. In the case of credits that remain with a single payment scheme of principal at maturity, what is provided in the following paragraph 27 shall be applicable.

In the case of consolidated credits, if in accordance with paragraph 68, two or more credits had originated the transfer to overdue portfolio, to determine the required amortizations, the original payment scheme of the credit whose amortizations are equivalent to the longest term shall be attended to.

In all cases in the demonstration that there is sustained payment, Fovissste and Infonavit shall have available to the CNBV evidence justifying that the borrower has payment capacity at the moment the restructuring or renewal is carried out to face the new conditions of the credit.

In the case of credits with single payment of principal at maturity, regardless of whether the payment of interest is periodic or at maturity, sustained payment of the credit is considered to exist when any of the following situations occurs:

the borrower has covered at least 20% of the original amount of the credit at the moment of the restructuring or renewal, or

the amount of accrued interest in accordance with the payment scheme for restructuring or renewal corresponding to a term of 90 days has been covered.

The prepayment of amortizations of restructured or renewed credits, other than those with single payment of principal at maturity, regardless of whether interest is paid periodically or at maturity, is not considered sustained payment. Such is the case of amortizations of restructured or renewed credits that are paid without having elapsed the calendar days equivalent to the periods required in accordance with the preceding paragraph 23.

Restructuring.- It is that operation that derives from any of the following situations:

expansion of guarantees that cover the credit in question, or

modifications to the original conditions of the credit or to the payment scheme, among which are:

change of the interest rate established for the remaining term of the credit;
change of currency or unit of account;
granting of a waiting period regarding the fulfillment of payment obligations in accordance with the original terms of the credit, or
extension of the credit term.

Special Amortization Regime (REA). - This is the payment modality for credits granted to workers when they are in the situations contemplated in the "Rules for the granting of credits to workers who are beneficiaries of the National Housing Fund Institute for Workers" issued by the Administrative Council of Infonavit, which establish the methodology for making payments for such credits. In the case of credits granted by Fovissste, it refers to credits whose payment modality is not through salary deductions.

Ordinary Amortization Regime (ROA). - This is the payment modality by which workers pay their Fovissste or Infonavit credits through salary deductions made by their employers, Entities or Dependencies, which are transferred to Fovissste or Infonavit.

Renewal. - This is an operation in which the balance of a credit is settled partially or totally, through an increase in the original amount of the credit, or with the proceeds from another credit contracted with Infonavit, in which the same debtor, a joint obligor of said debtor, or another person who constitutes common risks due to their patrimonial links, is a party.

Notwithstanding the foregoing, a credit will not be considered renewed for the provisions made during the validity of a pre-established credit line, provided that the borrower has settled all payments due to them in accordance with the original conditions of the credit.

Credit risk. - For the purposes of this criterion, it is defined as the potential loss due to the non-payment by a borrower or counterparty in the operations carried out by Fovissste and Infonavit, including the real or personal guarantees granted to them, as well as any other mitigation mechanism used by Fovissste and Infonavit.

Extension risk. - It refers to the portion of credits that will not be possible to cover with the established monthly payments, derived from the obligation of Fovissste or Infonavit to release their payment, once the term referred to in the applicable legislation is met.

Outstanding balance. - It is the result obtained by applying the amortized cost.

Recognition and valuation standards

The balance to be recorded in the credit portfolio will be the amount effectively granted to the borrower and, if applicable, the insurance that has been financed. To this amount, any type of interest that accrues in accordance with the credit's payment schedule will be added.

The outstanding balance of credits denominated in VSM (Minimum Wage Units) will be adjusted based on the corresponding minimum wage, recording the adjustment for the increase against a deferred credit, which will be recognized in the results of the exercise in the proportion corresponding to a 12-month period as interest income. In the event that there is a modification to said minimum wage before the end of the 12-month period, the outstanding balance to be amortized will be carried to the results of the exercise in the interest income item on that date.

In cases where interest is collected in advance, these will be recognized as an advance collection in the deferred credits and advance collections item. Such collection will be amortized over the life of the credit under the straight-line method against the results of the exercise, in the interest income item.

Credit lines

In the case of credit lines that Fovissste and Infonavit have granted, in which not all of the authorized amount has been drawn, the unused portion of them must be kept in off-balance sheet accounts.

Partial payments in kind

Partial payments received in kind to cover amortizations (principal and/or interest) accrued or, if applicable, due, will be recorded in accordance with what is established in criterion B-4 "Assets adjudicated".

Commissions charged for the granting of credit

Commissions charged for the granting of credit will be recorded as a deferred credit, which will be amortized against the results of the exercise as interest income, under the straight-line method during the life of the credit, except those originating from revolving credits, which must be amortized over a period of 12 months.

Regarding commissions charged for restructuring or renewals of credits, they must be added to the commissions that would have originated in accordance with the previous paragraph, being recognized as a deferred credit, which will be amortized against the results of the exercise as interest income, under the straight-line method during the new term of the credit.

Commissions that are recognized after the granting of the credit, those that are generated as part of the maintenance of said credits, and those that are charged in connection with credits that have not been placed, will not fall into this category.

Likewise, in the case of commissions charged that originate from the granting of a credit line that has not been drawn, at that moment they will be recognized as a deferred credit, which will be amortized against the results of the exercise as interest income under the straight-line method for a period of 12 months. In the event that the credit line is canceled before the end of the aforementioned 12-month period, the outstanding balance to be amortized must be recognized directly in the results of the exercise in the item of commissions and fees charged, on the date when the cancellation of the line occurs.

Costs and expenses associated

Costs and expenses associated with the granting of credit will be recognized as a deferred charge, which will be amortized against the results of the exercise as interest expense, during the same accounting period in which income from commissions charged for the granting of credit referred to in this section is recognized.

For the purposes of the previous paragraph, costs or expenses associated with the granting of credit will be understood to be only those that are incremental and directly related to activities carried out by Fovissste or Infonavit to grant the credit, for example, the credit evaluation of the debtor, evaluation and recognition of guarantees, negotiations for the terms of the credit, preparation and processing of credit documentation and closing or cancellation of the transaction, including the proportion of compensation to employees directly related to the time invested in the development of these activities.

Any other cost or expense not included in the previous paragraph, including those related to promotion, advertising, potential clients, administration of existing credits (follow-up, control, recoveries, etc.) and other auxiliary activities related to the establishment and monitoring of credit policies, will be recognized directly in the results of the exercise as they accrue in the item corresponding to the nature of the cost or expense.

Commissions charged or pending collection, as well as costs and expenses associated with the granting of credit, will not form part of the credit portfolio.

Commissions and fees charged

Commissions and fees other than those charged for the granting of credit will be recognized against the results of the exercise in the item of commissions and fees charged, on the date they accrue. In the event that part or all of the consideration received for the collection of the corresponding commission or fee is received in advance of the accrual of the related income, such advance must be recognized as a liability.

Acquisitions of credit portfolio by Fovissste

On the date of acquisition of the portfolio, the contractual value of the acquired portfolio must be recognized in the credit portfolio item, in accordance with the type of portfolio that the originator has classified; the difference that arises with respect to the acquisition price will be recorded as follows:

when the acquisition price is less than the contractual value of the same, in the results of the exercise within the item of other income (expenses) of the operation, up to the amount of the preventive estimate for credit risks that, if applicable, is constituted in accordance with what is indicated in the following paragraph and the excess as a deferred credit, which will be amortized as respective collections are made, in accordance with the proportion that these represent of the contractual value of the credit;

when the acquisition price of the portfolio is greater than its contractual value, as a deferred charge which will be amortized as respective collections are made, in accordance with the proportion that these represent of the contractual value of the credit.

Preventive estimate for credit risks of portfolio acquisitions

Fovissste will constitute for any type of acquired credit against the results of the exercise the preventive estimate for credit risks that corresponds, in accordance with what is stated in paragraphs 75 and 76, taking into account the defaults that the credit has presented since its origin.

Transfer to non-performing portfolio

The outstanding balance in accordance with the payment conditions established in the credit contract will be registered as non-performing portfolio when:

it is known that the borrower is declared in commercial bankruptcy, in accordance with the Commercial Bankruptcy Law, or

in the case of housing credits in accordance with the corresponding payment modality (REA or ROA), the amortizations have not been settled in full in the terms originally agreed and present 90 or more days of delinquency.

their amortizations have not been settled in full in the terms originally agreed, considering the following for this purpose:

if the debts consist of credits with a single payment of principal and interest at maturity and present 30 or more natural days of delinquency;

if the debts refer to credits with a single payment of principal at maturity and with periodic interest payments and present 90 or more natural days of delinquency for the respective interest payment, or 30 or more natural days of delinquency for the principal;

if the debts consist of credits with periodic partial payments of principal and interest and present 90 or more natural days of delinquency;

in the case of portfolio in extension, present 90 or more natural days of delinquency once such extension expires;

if the debts consist of revolving credits and present two monthly billing periods overdue or, if the billing period is different from monthly, the corresponding to 60 or more natural days of delinquency, and

the documents for immediate collection referred to in criterion B-1 "Cash and cash equivalents" will be reported as non-performing portfolio at the moment when such event occurs.

The transfer to non-performing portfolio of the credits referred to in item 2 of the previous paragraph will be subject to the exceptional term of 120 or more days of default from the date on which:

the resources of the credit are disbursed for the purpose for which they were granted;

the borrower starts a new labor relationship for which they have a new employer, or

Fovissste and Infonavit have received the partial payment of the corresponding amortization. The exception contained in this item will be applicable only if it concerns credits under the ROA scheme, and each of the payments made during said period represent, at least, 5% of the agreed amortization.

The exceptions contained in this paragraph are not mutually exclusive.

With respect to the maturity terms referred to in items 2 and 3 of paragraph 53 as well as paragraph 54 above, monthly periods may be used, regardless of the number of days in each calendar month, in accordance with the following equivalences:

30 days

one month

60 days

two months

90 days

three months

Likewise, in the event that the fixed term expires on an non-working day, said term will be understood to be concluded on the first following working day.

Additionally, credits that are in the situations to be considered as prematurely due in terms of the applicable legislation will be registered as non-performing portfolio. Examples of such situations are that the debtors alienate the housing, encumber the real estate that guarantees the payment of the granted credits, do not maintain the damage insurance valid for the entire time that there is a balance due, or incur in the causes of rescission recorded in the respective contracts.

In the case of acquisitions of credit portfolio, for the determination of the days of delinquency and its corresponding transfer to non-performing portfolio as indicated in paragraphs 53 to 57, the defaults that the borrower has presented since its origin must be taken into account.

Restructurings and renewals

Overdue credits that are restructured or renewed will remain within the non-performing portfolio, as long as there is no evidence of sustained payment.

Credits with a single payment of principal at maturity, regardless of whether interest is paid periodically or at maturity, that are restructured during their term or renewed at any time, will be considered as non-performing portfolio, as long as there is no evidence of sustained payment, in accordance with what is established in paragraph 27 of this criterion.

Credits granted under a credit line, revolving or not, that are restructured or renewed at any time, may remain in the performing portfolio as long as there are elements that justify the debtor's payment capacity. Additionally, the borrower must have:

settled all interest due, and

covered all payments to which they are obligated in terms of the contract on the date of the restructuring or renewal.

In the case of credit disbursements made under a line, when they are restructured or renewed independently of the credit line that supports them, they must be evaluated in accordance with this section attending to the characteristics and conditions applicable to the disbursement or disbursements restructured or renewed. If such analysis concludes that one or more of the disbursements granted under a credit line must be transferred to non-performing portfolio as a result of their restructuring or renewal; the total disbursed balance of the credit line must be transferred to non-performing portfolio as long as there is no evidence of sustained payment.

Performing credits with characteristics different from those indicated in paragraphs 60 to 62 above that are restructured or renewed, without at least 80% of the original term of the credit having elapsed, will be considered to continue being performing, only when:

the borrower has covered all interest accrued on the date of the renewal or restructuring;

the borrower has covered the principal of the original amount of the credit, which on the date of the renewal or restructuring should have been covered, and

the grace period that, if any, was provided for in the original conditions of the credit has not been extended.

In the event that all the conditions described in the previous paragraph are not met, they will be considered as overdue from the moment they are restructured or renewed, and until such time as there is evidence of sustained payment.

When it concerns performing credits with characteristics different from those indicated in paragraphs 60 to 62 above that are restructured or renewed during the course of the final 20% of the original term of the credit, these will be considered performing only when the borrower has:

settled all interest accrued on the date of the renewal or restructuring;

covered the principal of the original amount of the credit, which on the date of the renewal or restructuring should have been covered, and

covered 60% of the original amount of the credit.

Performing credits with periodic partial payments of principal and interest that are restructured or renewed on more than one occasion, may remain in the performing portfolio if, in addition to having elements that justify the debtor's payment capacity, the borrower complies with the conditions established in paragraphs 63 or 65 above, as applicable.

In the event that through a restructuring or renewal various credits granted by Fovissste or Infonavit to the same borrower are consolidated, each of the consolidated credits must be analyzed as if they were restructured or renewed separately, and if such analysis concludes that one or more of said credits would have been transferred to non-performing portfolio as a result of said restructuring or renewal, then the total balance of the consolidated credit must be transferred to non-performing portfolio.

What is provided in paragraphs 60 to 68 will not be applicable to those restructurings that on the date of the operation present payment compliance for the total amount due of principal and interest and only modify one or several of the following original conditions of the credit:

Guarantees: only when they imply the expansion or substitution of guarantees by others of better quality.

Interest rate: when the agreed interest rate is improved for the borrower.

Payment date: only in the event that the change does not exceed or modify the periodicity of the payments. In no case will the change in the payment date allow for the omission of payment in any period.

Suspension of interest accumulation

The accumulation of accrued interest on credit operations must be suspended at the moment when the outstanding balance of the credit is considered as overdue.

To credits that contractually capitalize interest to the amount of the debt, the suspension of interest accumulation established in the previous paragraph will be applicable.

As long as the credit remains in the non-performing portfolio, the control of accrued interest will be kept in off-balance sheet accounts. In the event that such overdue interest is collected, it will be recognized directly in the results of the exercise in the interest income item.

Unpaid accrued interest

With respect to unpaid accrued interest corresponding to credits that are considered as non-performing portfolio, an estimate must be created for an amount equivalent to the total of these, at the moment of the transfer of the credit as non-performing portfolio.

In the case of overdue credits in which the restructuring agrees on the capitalization of unpaid accrued interest previously recorded in off-balance sheet accounts, Fovissste and Infonavit must create an estimate for 100% of said interest. The estimate can be canceled when there is evidence of sustained payment.

Preventive estimate for credit risks

The amount of the preventive estimate for credit risks must be determined based on the different methodologies established or authorized by the CNBV for each type of credit through general provisions, as well as by the additional estimates required in various regulations and those ordered and recognized by the CNBV, and must be recognized in the results of the exercise of the corresponding period.

The additional estimates recognized by the CNBV referred to in the previous paragraph are those that are constituted to cover risks that are not foreseen in the different portfolio rating methodologies, and on which, prior to their constitution, Fovissste and Infonavit must inform the CNBV of the following:

origin of the estimates;

methodology for their determination;

amount of estimates to be constituted, and

time estimated to be necessary.

Write-offs, eliminations and recoveries of credit portfolio

Fovissste and Infonavit must periodically evaluate if an overdue credit should remain in the balance sheet, or rather, be written off. Such write-off will be carried out by canceling the outstanding balance of the credit against the preventive estimate for credit risks. When the credit to be written off exceeds the balance of its associated estimate, before carrying out the write-off, said estimate must be increased up to the amount of the difference.

In addition to what is established in the previous paragraph, Fovissste and Infonavit may opt to eliminate from their assets those overdue credits that are provisioned at 100% in accordance with what is stated in paragraphs 75 and 76, even if they do not meet the conditions to be written off. For such purposes, Fovissste and Infonavit must cancel the outstanding balance of the credit against the preventive estimate for credit risks.

Any recovery derived from previously written-off or eliminated credits in accordance with the two previous paragraphs, must be recognized in the results of the exercise within the item of preventive estimate for credit risks.

Discounts, forgiveness, bonuses and discounts on the portfolio

Discounts, forgiveness, bonuses and discounts, that is, the amount forgiven of the payment of the credit in partial or total form, will be recorded charged to the preventive estimate for credit risks. In the event that the amount of these exceeds the balance of the estimate associated with the credit, estimates must previously be constituted up to the amount of the difference.

Credits denominated in VSM

For the case of credits denominated in VSM, the estimate corresponding to said credits will be denominated in the unit of account of origin that corresponds.

Cancellation of excesses in the preventive estimate for credit risks

When the balance of the preventive estimate for credit risks has exceeded the amount required in accordance with paragraphs 75 and 76, the differential must be canceled in the period in which such changes occur against the results of the exercise, affecting the same concept or item that originated it, that is, the item of preventive estimate for credit risks.

Assignment of credit portfolio

For credit portfolio assignment operations in which the conditions established in criterion C-1 "Transfer of financial assets" are not met, to consider the operation as a transfer of

ownership or if only the flows linked to said financial asset Fovissste and Infonavit are transferred, they must keep the amount of the assigned credit in the asset, and recognize in the liability the amount of resources from the assignee.

In cases where portfolio assignment is carried out, in which the conditions established in criterion C-1 are met to consider the operation as a transfer of ownership, the provisions of said criterion shall apply, and the estimate associated with it must be cancelled.

Transfer to current portfolio

Credits that have matured will be returned to the current portfolio if the pending payment balances (principal and interest, among others) are fully settled, or, if they are restructured or renewed credits, if they comply with the sustained payment of the credit.

Presentation Standards

Balance Sheet

the portfolio will be grouped into current and past-due, according to the type of credit, whether commercial or housing credits (including, ordinary amortization regime, special amortization regime, and portfolio in extension);

the preventive estimate for credit risks must be presented in a separate item, subtracted from the credit portfolio;

the effect from the revaluation of credits in VSM referred to in paragraph 38 will be presented as part of the credit portfolio;

interests collected in advance must be presented together with the portfolio that gave rise to them;

the deferred charge, if any, generated by the acquisition of portfolio, must be presented in the other assets item;

the excess, if any, originated by the acquisition of portfolio referred to in subsection a) of paragraph 51, as well as the commissions received in advance before the accrual of the related income, will be presented in the deferred credits and advance collections item;

commissions charged for the granting of credit must be presented net of associated costs and expenses, appearing in the other assets item, or in deferred credits and advance collections, depending on their debtor or creditor nature;

the liability derived from portfolio assignment operations will be presented in the bank loans and loans from other entities item, or in the loans or federal government and other entities support item;

the unused amount of the credit lines granted by Fovissste and Infonavit will be presented in off-balance sheet accounts, in the item called credit commitments;

and

the amount of accrued but uncollected interest derived from past-due credit portfolio will be presented in off-balance sheet accounts in the item of accrued but uncollected interest derived from past-due credit.

Income Statement

Interest income will be grouped as accrued interest, amortization of interest collected in advance, accrual of deferred credit for revaluation of VSM credits, and amortization of commissions charged for the granting of credit. Likewise, interest expenses will be grouped as amortization of costs and expenses associated with the granting of credit.

The preventive estimate for credit risks, as well as the result from VSM revaluation originating from the estimate, will be presented as a specific item, immediately after the financial margin.

Commissions and fees charged will be presented for commissions other than those related to the granting of credit.

The amortization of deferred credit or deferred charge, derived from the acquisition of credit portfolios, from the difference between contractual value and acquisition price up to the amount of the estimate for credit risks referred to in subsection a) of paragraph 51, as well as the profit or loss derived from the assignment of credit portfolio, will be presented in the other income (expenses) from operations item, as applicable.

Disclosure Standards

Through notes to the financial statements, the following must be disclosed:

main policies and procedures established for the granting, acquisition, assignment, control, and recovery of credits, as well as those related to the evaluation and monitoring of credit risk;

brief description of the credits granted under the main financing schemes, whether granted directly by Fovissste or Infonavit, or those granted jointly with other housing institutes, financial entities, or the Federal Government;

total amount and brief description of the characteristics of the portfolio in extension, describing the percentage that the portfolio in extension represents of the granted credits, specifying the original term, the point in the term when the extension is requested, as well as the average time these credits remain in extension;

total amount and number of credits referred to in the previous paragraph 54, as well as the total amount of credits that according to said paragraph were not transferred to past-due portfolio, segregated according to the assumptions described in said paragraph 54;

accounting policies and methods used to identify troubled commercial credits, whether current or past-due;

policies and procedures established to determine concentrations of credit risk;

breakdown of the total balance of commercial credits, identifying them as troubled and non-troubled, both current and past-due;

breakdown of the current and past-due portfolio distinguishing those denominated in national currency and in VSM;

identification by type of credit (business/commercial activity and housing), of the past-due portfolio balance from the date it was classified as such, in the following terms: 1 to 180 natural days, 181 to 365 natural days, 366 natural days to 2 years, and more than 2 years past-due;

the amounts of commissions and costs and expenses recognized for the granting of credit; weighted average term for their amortization, description of the concepts that make up the commissions for the origination of such credits and the costs and expenses associated with such commissions, as well as elements that justify their direct relationship with the granting of credit;

explanation of the main variations in the past-due portfolio identifying, among others: restructurings, renewals, adjudications, haircuts, write-offs, transfers to current portfolio, and from current portfolio;

brief description of the methodology to determine preventive estimates for credit risk and extension;

qualification by risk degree, portfolio amount, as well as the preventive estimate for credit risk, disaggregated according to the stratification contained in the methodologies for the qualification of the credit portfolio and by type of credit (business/commercial activity and housing). Likewise, the amount of the portfolio exempt from such qualification must be disclosed;

balance of the preventive estimate for credit risk, breaking it down according to the methodologies for the qualification of the credit portfolio, as well as by type of credit (business/commercial activity and housing);

movements made to the preventive estimate for credit risk during the exercise by its creation, write-offs, cancellations, haircuts, forgiveness, bonuses, discounts, and adjudications, among others;

amount derived from the cancellation of the preventive estimate for credit risk, and the reasons that motivated such cancellation;

amount and origin of the estimates recognized by the CNBV, as well as the methodology used for their determination;

amount of past-due credits that according to paragraph 77 were eliminated from their asset, disaggregating their integration according to the following: balance at the beginning of each exercise, amount of new credits reserved at 100%, and the amount of recoveries;

the main policies and procedures regarding the granting of restructurings and renewals, including restructurings or renewals that consolidate various credits granted by the same entities to the same borrower, as well as the elements taken into account to evidence sustained payment;

total accumulated amount of restructured or renewed by type of credit (business/commercial activity and housing) distinguishing those originated in the exercise. Each of these amounts must be broken down into:

past-due credits that were restructured or renewed;

ii.

restructurings or renewals that were transferred to past-due portfolio for having been restructured or renewed, in compliance with paragraph 60;

iii.

restructured or renewed credits that remained in current portfolio according to paragraphs 61 to 67;

iv.

consolidated credits that as a result of a restructuring or renewal were transferred to past-due portfolio, according to paragraph 68, and

restructured credits to which the criteria relative to transfer to past-due portfolio were not applied based on paragraph 69.

amount and nature of additional guarantees and concessions granted in restructured credits;

total amount of the acquired credit portfolio, as well as the estimates related to said portfolio;

total amount of the credit portfolio assignments that Fovissste and Infonavit have carried out with and without transfer of ownership;

amount of recoveries of previously written-off or eliminated credit portfolio;

breakdown of interest and commissions by type of credit (business/commercial activity and housing);

amount of interest income that was recognized in the credit in question, at the time of capitalization referred to in paragraph 74;

aa)

amount of credit lines registered in off-balance sheet accounts, and

bb)

brief description of the effects on the credit portfolio derived from the application of the different methodologies established through general provisions or authorized by the CNBV for each type of credit, as well as additional estimates required in various regulations and those ordered and recognized by the CNBV.

D-2 INCOME STATEMENT

Background

Financial information must comply, among other things, with the purpose of reporting the results of the operations of Fovissste and Infonavit in a defined accounting period, requiring the establishment, through specific criteria, of the object and general structure that the income statement must have.

Objective and Scope

This criterion aims to establish the general characteristics and structure that the income statement must have. Whenever this financial statement is prepared, Fovissste and Infonavit must adhere to the structure and guidelines provided in this criterion. Likewise, minimum guidelines are established with the purpose of homogenizing the presentation of this financial statement with that of other financial entities, and in this way, facilitate its comparability.

Objective of the Income Statement

The income statement aims to present information about the operations developed by Fovissste and Infonavit, as well as other economic events that affect them, which do not necessarily come from decisions or transactions derived from their Governing Body, during a specific period.

Consequently, the income statement will show the increase or decrease in the equity of Fovissste and Infonavit, attributable to the operations carried out by these, during a set period.

The provisions of the previous paragraph are not applicable to those items of Fovissste and Infonavit that by express provision must be incorporated into accounting equity, other than those coming from the income statement, such as those that make up comprehensive income (result from valuation of available-for-sale securities and result from holding non-monetary assets). The presentation of increases or decreases in equity derived from these items is specified in criterion D-3 "Statement of Changes in Accounting Equity".

Concepts Integrating the Income Statement

In a broad context, the concepts that integrate the income statement are: income, costs, expenses, gains, and losses, considering as such the concepts thus defined in NIF A-5 "Basic Elements of Financial Statements" of the NIFs.

Structure of the Income Statement

The minimum items that the income statement must contain in Fovissste and Infonavit are the following:

financial margin;

financial margin adjusted for credit risks;

result of operations, and

net result.

Presentation of the Income Statement

The items described above correspond to the minimum required for the presentation of the income statement; however, Fovissste and Infonavit must break down either in the said income statement, or through notes to the financial statements, the content of the concepts they consider necessary in order to show the results of the same for the user of the financial information. At the end of this criterion, an income statement prepared with the minimum items referred to in the previous paragraph is shown.

Characteristics of the items composing the structure of the income statement:

Financial Margin

The financial margin must be composed of the difference between interest income and interest expenses, increased or decreased by the result from net monetary position related to items of the financial margin (in the case of an inflationary environment).

Interest Income

Interest income includes the returns generated by the credit portfolio, contractually called interest, the amortization of interest collected in advance, as well as premiums and interest from other financial operations typical of Fovissste and Infonavit such as deposits in financial entities and investments in securities.

Commissions charged for the granting of credit, as well as dividends from equity instruments, are also considered interest income.

Likewise, revaluation adjustments derived from items denominated in UDIS or some other general price index, the amortization of deferred credit for revaluation of VSM credits, as well as exchange gains are considered interest income, provided that such items come from positions related to income or expenses that form part of the financial margin.

Interest collected relative to credits previously classified as past-due portfolio, whose accumulation is carried out according to their collection, in accordance with what is established in criterion B-3 "Credit Portfolio", form part of this item.

Interest Expenses

Interest expenses include premiums, discounts, and interest derived from bank loans and loans from other entities or loans or federal government and other entities support, the adjustment from additional amounts to contributions that constitute the housing fund and savings fund, the provision for the basic amount and the adjustment amount.

Likewise, revaluation adjustments derived from items denominated in UDIS or some other general price index, as well as exchange losses are considered interest expenses, provided that such concepts come from positions related to expenses or income that form part of the financial margin.

Likewise, the amortization of costs and expenses associated with the granting of credit is considered interest expense.

Result from Net Monetary Position (Financial Margin)

The result from net monetary position referred to in paragraph 9 will be that which originates from items whose income or expenses form part of the financial margin (in the case of an inflationary environment).

The result from net monetary position originated by items that are registered directly in the accounting equity of Fovissste and Infonavit will not be considered in this item, since said result must be presented in the corresponding equity item.

Financial Margin Adjusted for Credit Risks

It corresponds to the financial margin deducted by the amounts related to the movements of the preventive estimate for credit risks in a given period.

Result of Operations

It corresponds to the financial margin adjusted for credit risks, increased or decreased by:

commissions and fees charged and paid;

the result from intermediation;

other income (expenses) from operations other than interest income or expenses that have been included within the financial margin;

subsidies, and

administration and promotion expenses.

Commissions and fees charged and paid are those generated by credit operations other than those indicated in paragraphs 12 and 16, loans received, for the provision of services and administration of resources.

Likewise, the result from intermediation is considered part of the result of operations, understood as the following concepts:

result from valuation at fair value of trading securities;

impairment loss or effect of reversal of impairment of securities;

result from valuation of currencies linked to its social object;

transaction costs for the purchase and sale of trading securities, and

result from purchase and sale of securities and currencies linked to its social object.

Additionally, other income (expenses) from operations are also recognized within the result of operations, considered as such the ordinary income and expenses referred to in NIF A-5 and that are not included in the previous concepts, nor form part of administration and promotion expenses, such as:

recoveries of receivables rights

result from acquisition or assignment of portfolio;

impacts on the estimate for uncollectibility or difficult collection;

losses;

donations;

impairment loss or effect of reversal of impairment of real estate, other long-term assets in use or available for sale, and other assets;

loss from adjudication of assets, result from the valuation of adjudicated assets, result in the sale of adjudicated assets, as well as the estimate for the loss of value in adjudicated assets;

result in the sale of properties, furniture, and equipment, and

result in the sale of the territorial reserve.

In addition to the previously mentioned items, the result from net monetary position, in the case of an inflationary environment, and the result in changes generated by items not related to the financial margin of Fovissste and Infonavit will be presented in the other income (expenses) from operations item.

Likewise, subsidies that Infonavit receives from the Federal Government will be part of the result of operations.

Finally, administration and promotion expenses must be considered within the result of operations, which must include all types of direct benefits granted to the employees of Fovissste and Infonavit, fees, rents, promotion expenses, technology expenses, depreciation and amortizations, the net cost of the period derived from employee benefits, as well as taxes and duties to which they are subject.

Net Result

It corresponds to the result of operations increased or decreased as applicable, by discontinued operations referred to in Bulletin C-15 "Impairment in the value of long-term assets and their disposal" of the NIFs.

Disclosure Standards

The following must be disclosed in notes to the financial statements:

composition of the financial margin, identifying by type of currency interest income and interest expenses, distinguishing them by the type of operation from which they come (investments in securities, credit portfolio, contributions in favor of workers, bank loans and loans from other entities, as well as loans or federal government and other entities support, among others);

in the case of credit portfolio, additionally, the amount of interest income by type of credit (business/commercial activity and housing) must be identified;

composition of the result from intermediation, identifying the result from valuation at fair value and, if applicable, the result from purchase and sale, of investments in securities;

amount of commissions charged disaggregated by the main products handled by Fovissste and Infonavit, and

the amounts of commissions and costs and expenses incurred for the granting of credit recognized in results; weighted average term for their amortization; description of the concepts that make up the commissions for initial origination and restructuring of such credits and the costs and expenses associated with such commissions, as well as elements that justify their direct relationship with the granting of credit.

NAME OF THE DEVELOPMENT AGENCY

ADDRESS

INCOME STATEMENT OF THE ___________________ TO _________________ OF ___

EXPRESSED IN CURRENCY OF PURCHASING POWER OF ________ OF _______

( 1 )

(Numbers in thousands of pesos)

Interest Income

Interest Expenses

Result from Net Monetary Position (Financial Margin)

" _____

FINANCIAL MARGIN

Preventive Estimate for Credit Risks

" _____

FINANCIAL MARGIN ADJUSTED FOR CREDIT RISKS

Commissions and Fees Charged

Commissions and Fees Paid

Result from Intermediation

Other Income (Expenses) from Operations

Subsidies (2)

Administration and Promotion Expenses

" _____

RESULT OF OPERATIONS

Discontinued Operations

" _____

NET RESULT

$ _____

The concepts appearing in this statement are shown in an enumerative rather than limiting manner.

( 1 )

This line will be omitted if the economic environment is "non-inflationary".

( 2 )

This line will be used only by Infonavit when it obtains income under this concept.

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CONSULTATION

BY DATE

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INDICATORS

Exchange Rate and Rates as of 29/08/2026

UDIS

8.809369

SURVEYS

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