Resolution modifying the general provisions applicable to general warehouse companies, exchange houses, credit unions, and multiple-object financial societies regulated

DOF: 23/01/2018

RESOLUTION modifying the general provisions applicable to general warehouse companies, exchange houses, credit unions, and multiple-object financial societies regulated

A seal with the National Coat of Arms is placed at the margin, which reads: United Mexican States.- Ministry of Finance and Public Credit.- National Banking and Securities Commission.

The National Banking and Securities Commission, based on the provisions of articles 52, first paragraph, and 54, first paragraph of the General Law of Credit Auxiliary Organizations and Activities; 65 and 74 of the Credit Unions Law; 4, fractions III, IV, XXXVI, and XXXVIII, and 16, fraction I of the National Banking and Securities Commission Law; 12; 15, first paragraph; 19, fraction I, subsection e); 20, fraction I, subsection a); 42, fraction I, and 58 of the Internal Regulations of the National Banking and Securities Commission; as well as 11, fraction V, subsection 16); 12, fraction II, subsection 31); 38, fractions I, subsections 2), 3), and 11), VI, subsections 15) and 19), IX, subsections 15) and 22) 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 general warehouse companies and credit unions so that they can cancel, in the period in which they occur, the surpluses 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 of Financial Information Standards, A.C., so that they become applicable to general warehouse companies, exchange houses, and credit unions, while 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 GENERAL WAREHOUSE COMPANIES, EXCHANGE HOUSES, CREDIT UNIONS, AND MULTIPLE-OBJECT FINANCIAL SOCIETIES REGULATED

SINGLE.-

The Annexes 1, Criteria A-2 "Application of particular standards", B-5 "Credit portfolio", and D-2 "Income statement"; 4, Criteria A-2 "Application of particular standards", B-5 "Credit portfolio", and D-2 "Income statement", and 5, Criterion A-2 "Application of particular standards" of the "General provisions applicable to general warehouse companies, exchange houses, credit unions, and multiple-object financial societies regulated", published in the Official Gazette of the Federation on January 19, 2009, and modified through resolutions published in said Official Gazette on July 1 and 30, 2009; February 18, 2010; February 4, April 11, and December 22, 2011; February 3 and June 27, 2012; January 31, 2013; December 3, 2014; January 8 and 12, May 19, October 19 and 28, 2015; January 22, May 13, September 28, and December 27, 2016; February 28, April 4, August 25, October 6, November 10, and December 18, 2017, are REFORMED, to read as follows:

TITLES FIRST to EIGHTH . . .

Annex 1

Accounting criteria for General Warehouse Companies.

Annexes 2 and 3

. . .

Annex 4

Accounting criteria for Credit Unions.

Annex 5

Accounting criteria for Exchange Houses.

Annexes 6 to 34

. . .

TRANSITORY CLAUSES

FIRST.-

General warehouse companies and credit unions must comply with what is provided in Criteria B-5 "Credit Portfolio" and D-2 "Income Statement" of Annexes 1 and 4, which are modified by this Resolution, starting from January 1, 2019.

Notwithstanding the foregoing, general warehouse companies and credit unions may opt to apply Criteria B-5 "Credit Portfolio" and D-2 "Income Statement" of Annexes 1 and 4, which are reformed by this instrument, starting from the day following their publication, having to give notice that they exercised this 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 is to 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 instruments receivable", C-19 "Financial instruments payable", C-20 "Financial instruments to collect principal and interest", D-1 "Revenue from contracts with customers", and D-2 "Costs from contracts with customers", issued by the Mexican Council of Financial Information Standards, A.C., and referred to in paragraph 3 of Criterion A-2 "Application of particular standards" of Annexes 1, 4, and 5 modified by this instrument, will enter into force on January 1, 2019.

Respectfully,

Mexico City, January 11, 2018. - National Banking and Securities Commission: The Vice President of Normativity, Arcelia Olea Leyva. - Initials. - The Vice President of Supervision of Groups and Financial Intermediaries A, Fernando Rodríguez Antuña. - Initials. - The Vice President of Supervision of Groups and Financial Intermediaries B, Marco Antonio López Pérez. - Initials. - The Vice President of Supervision of Development Banking and Popular Finance, Cecilia Teresa Mondragón Lora. - Initials.

A-2 APPLICATION OF PARTICULAR STANDARDS

Objective and scope

This criterion aims to clarify the application of particular standards of the Financial Information Standards (NIF), as well as clarifications thereof.

The subject matter of this criterion 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 criterion A-1 "Basic scheme of the set of accounting criteria applicable to general warehouse companies", 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 Series B "Standards applicable to financial statements as a whole"

Accounting changes and corrections of errors

...............................................................

B-1

Comprehensive income

.................................................................................................

B-4

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 date of the financial statements

..................................................

B-13

Earnings per share

..........................................................................................

B-14

Determination of fair value

............................................................................

B-17

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

Accounts receivable

.............................................................................................

C-3

Inventories

....................................................................................................

C-4

Prepayments

..............................................................................................

C-5

Property, plant, and equipment

..................................................................................

C-6

Investments in associates 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, equity, or both.

..........................

C-12

Impairment of long-lived assets and their disposal

............................................................

C-15

Impairment of financial instruments receivable

............................................................

C-16

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

....................................

C-18

Financial instruments payable

...........................................................................

C-19

Financial instruments to collect principal and interest

....................................................

C-20

NIF Series D "Standards applicable to income determination problems"

Revenue from contracts with customers

...........................................................................

D-1

Costs from contracts with customers

...........................................................................

D-2

Employee benefits

....................................................................................

D-3

Income taxes

.........................................................................................

D-4

Leases

.................................................................................................

D-5

Capitalization of comprehensive financing result

.....................................................

D-6

Share-based payments

...................................................................................

D-8

Additionally, entities shall observe the NIFs issued by the CINIF on topics not foreseen in the accounting criteria for general warehouse companies, provided that:

they are in force with definitive character;

they are not applied in advance;

they do not contravene the philosophy and general concepts established in the accounting criteria for general warehouse companies, 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 the CINIF. In virtue of this, entities, when observing what is established in the previous paragraph, must comply with 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 for general warehouse companies, solely with respect to the restatement of financial statements, considering that this criterion is not applicable to investment companies.

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 must be attended to:

Entities must 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

The entity must 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 income statement 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) of the operation.

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

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", issued by the CNBV, as well as those from operating lease transactions indicated in paragraphs 43 to 45 of this criterion, shall not be included, since the recognition, valuation, presentation, and disclosure standards applicable are contemplated therein.

Loans to officials and employees

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

Estimate for uncollectibility or difficult collection

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

For the loans that entities grant to their officials and employees, as well as for those accounts receivable other than those in the previous paragraph and those in paragraph 17 relative to identified debtors whose maturity is agreed from the origin to a term greater than 90 natural days, they must create, if applicable, an estimate that reflects their degree of uncollectibility.

Such estimate must 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 natural days following the date on which they have been transferred as other debtors, these will be classified as overdue debts and an estimate for their total amount must be simultaneously constituted.

The estimate for accounts receivable not included in paragraphs 14, 15, and 17 above must be constituted for the total amount of the debt according to the following deadlines:

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

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

No estimate for uncollectibility or difficult collection will be constituted in the following cases:

tax balances in favor;

creditable value-added tax, and

clearing accounts.

The concepts resulting from operations between the parent company and branches will be cleared at least at the close of each month, so they must not have a balance on that date.

C-4

Inventories

What is established in Bulletin C-4 will be applicable to them for the commercialization operations of goods or merchandise subject to deposit on their own account that entities carry out, having to present said goods or merchandise in the balance sheet in the item of merchandise inventory, while in the income statement they will present their cost of sales in the item of other expenses.

C-7

Investments in associates 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 for general warehouse companies, 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 and B-4 are not included, since these are contemplated in said criteria.

Securities liabilities

Securities liabilities, that is, those arising from fundraising through the securities market, will be distinguished according to the following classification:

securities placed at par value, and

securities placed at a price different from par value (at a premium or discount).

Securities placed at par value will be recorded taking the contractual value of the obligation as a basis, recognizing accrued interest directly in the results of the period as an interest expense.

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

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

For presentation purposes, the premium or discount on placement must be shown within the liability that gave rise to it, and the deferred charge for issuance expenses will be presented within 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 securities issued must be disclosed in notes to the financial statements: amount; number of securities in circulation; par value; discount or premium; rights and form of redemption; guarantees; maturity; interest rate; effective interest rate; amortized amount of discount or premium in results; amount of issuance expenses and other related expenses, and the proportion that the authorized amount bears to the issued amount.

Bank loans and from other organizations

For their recognition, they will adhere to what is established in paragraph 25.

They must disclose in notes to the financial statements the total amount of bank loans, as well as that of other organizations, 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 the entire authorized amount is exercised, the unused part of them must 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 "Application of general standards", regarding the disclosure of financial information.

Subordinated obligations of mandatory conversion to equity

The subordinated obligations of mandatory conversion to equity that the entity issues and are acquired directly or through a trust by those entities that maintain direct or indirect participation in the capital of the entity itself, must be recorded as a liability.

The amortization of the premium, the discount, as well as the issuance expenses of both those subordinated obligations of mandatory conversion to equity classified as liabilities in the terms of Bulletin C-9, as well as those indicated in the previous paragraph, must be recognized in the results of the period as an interest expense or income.

Commissions paid derived from loans received by the entity or from the placement of debt, will be recorded on the date they are generated in the results of the period, in the item of commissions and fees paid.

C-11

Equity

At the bottom of the balance sheet, they must disclose the historical amount of share capital.

D-3

Employee benefits

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

Additionally, through notes to the financial statements, it must be disclosed:

the manner in which the Workers' Participation in Profits (PTU) was determined, explaining the bases used for its calculation, and

the identification of obligations for employee benefits in the short and long term.

Prepayments that arise from the application of this NIF will form part of the item of other assets.

D-4

Income taxes

For the case of income taxes incurred, it will be disclosed through notes to the financial statements the manner in which these were determined, explaining the bases used for their calculation.

Regarding the disclosure required in NIF D-4 on the concepts of temporary differences, additionally, those related to the financial margin and to the main operations of the entities must be disclosed, for example, those originated by the preventive estimate for credit risks and by the valuation of shares must be mentioned.

D-5

Leases

Capitalizable leases

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 said contract covers the

less than 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 Lessor

For the amount of depreciation that has not been settled within 30 calendar days following the due date of the payment, the lessor must create the corresponding estimate, suspending the accumulation of rents, controlling them in off-balance sheet accounts under the item of other recording accounts.

The lessor must present the receivable account in the balance sheet under the item of other receivables, and the lease income in the item of other income (expenses) from operations in the statement of results.

In addition to the disclosure required in paragraph 62 of Bulletin D-5, the lessor must disclose in the notes to the financial statements the amount of lease income recognized in the results of the period.

Accounting for the Lessee

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

Subleases and Similar Transactions

Accounting for the Original Lessee

The impacts on the results of the period referred to in paragraph 76 of Bulletin D-5, relating to the termination of the original lease, will be presented in the item of other income (expenses) from operations in the statement of results.

D-6

Capitalization of the Comprehensive Financing Result

For the purposes of this NIF, Comprehensive Financing Result (RIF) is understood to mean the following concepts: a) interest; b) result from monetary position, c) gain 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 interest income or other income (expenses) from operations, as applicable, based on what is established in the cited NIF D-6.

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

B-5 CREDIT PORTFOLIO

Objective and Scope

The objective of this criterion is to define the particular rules regarding the recognition, valuation, presentation, and disclosure in the financial statements of the credit portfolio of entities.

This criterion also includes accounting guidelines regarding the preventive estimate for credit risks.

The following are not subject to this criterion:

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

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

Definitions

Overdue Portfolio.- Composed of credits whose borrowers are declared in commercial bankruptcy, or whose principal, interest, or both, have not been settled in the terms originally agreed, considering for this purpose what is established in paragraphs 36 to 46 of this criterion.

Current Portfolio.- Integrated by credits that are up to date in their payments of both principal and interest, as well as those with principal or interest payments due that have not met the assumptions provided in this criterion to be considered as overdue, and those that having been classified as overdue portfolio are restructured or renewed and have evidence of sustained payment as 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 an entity has agreed from the date the credit was arranged, by mutual agreement with the borrower, the collection of a monetary fee for recovery of the costs or expenses incurred to grant the credit regardless of when the disbursements thereof are made. Likewise, commissions charged for restructuring or renewal of credits are considered part of these commissions.

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 has been recognized according to what is established in this criterion, the insurance, if any, that had been financed, the collections of principal and interest, as well as by discounts, forgiveness, bonuses, and discounts that have been granted, as applicable.

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

Commercial Credits.- To direct credits denominated in national currency, foreign currency, or investment units (UDIS), as well as the interest they generate, granted to legal entities or natural persons with business activity and destined for their commercial or financial business; including those granted to financial entities; credits granted to trustees acting under trusts and credit schemes commonly known as "structured" in which there is a patrimonial impact that allows evaluating the risk associated with the scheme individually.

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

Sustained Payment of the Credit.- Compliance with payment by the borrower without delay, for the total amount due 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 calendar days, the payment of a single installment.

For restructurings in which the payment periodicity is modified to periods shorter than those originally agreed, the number of amortizations equivalent to three consecutive amortizations of the original payment scheme of the credit must be considered.

The credit amortizations referred to in the two preceding paragraphs must cover at least 20% of the principal or the total amount of any type of interest that has accrued according to the payment scheme for restructuring or renewal. For these purposes, accrued interest recognized in off-balance sheet accounts will not be considered.

In the case where a restructuring or renewal consolidates various credits granted to the same borrower into a single credit, the total balance of the debt resulting from the restructuring or renewal will be given the corresponding treatment to the worst of the credits involved in it.

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. Elements that must be taken into account for such purposes include at least the following: the intrinsic probability of default of the borrower, the guarantees granted for the restructured or renewed credit, the priority of payment against other creditors, and the liquidity of the borrower in the face of the new financial structure of the financing.

The early payment of the amortizations referred to in the paragraphs of this definition is not considered sustained payment.

Payments are not considered to be write-offs, discounts, forgiveness, bonuses, and discounts made to the credit or group of credits.

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

expansion of guarantees covering the credit in question, or

modifications to the original conditions of the credit or 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, or
granting of a waiting period regarding the fulfillment of payment obligations according to the original terms of the credit, unless such concession is granted after the originally agreed term has concluded, in which case it will be treated as a renewal.

Renewal.- Is that operation in which the term of the credit is extended during or at its maturity, or it is settled at any time with the proceeds from another credit contracted with the same entity, in which the same debtor or another person who by their patrimonial links constitute common risks is a party.

In these terms, a credit is not considered renewed when the disbursements are made during the validity of a pre-established credit line.

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

Outstanding Balance.- Is the result obtained by applying the amortized cost.

Recognition and Valuation Rules

The balance to be recorded 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 accrues according to the credit's payment scheme will be added.

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, which will be amortized during the life of the credit under the straight-line method against the results of the period, 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 utilized, the unused portion of them must be kept in off-balance sheet accounts.

Partial Payments in Kind

Partial payments received in kind to cover the accrued or, if applicable, due amortizations (principal and/or interest) will be recorded according to what is established in criterion B-6 "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 period 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 renewal of credits, these must be added to the commissions that had originated according to the previous paragraph, recognized as a deferred credit, which will be amortized against the results of the period 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 charged in connection with credits that have not been placed will not fall into this category. Likewise, any other type of commission not included in the two preceding paragraphs will be recognized on the date they are generated against the results of the period in the item of commissions and fees charged.

Likewise, in the case of commissions charged that originate from the granting of a credit line that has not been disbursed, at that moment they will be recognized as a deferred credit, which will 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 end of the aforementioned 12-month period, the outstanding balance to be amortized must be recognized directly in the results of the period in the item of commissions and fees charged, on the date 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 period as an 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 are understood to be only those that are incremental and directly related to activities carried out by entities to grant 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 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 period 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.

Transfer to Overdue Portfolio

The outstanding balance according to the conditions established in the credit contract will be registered as overdue portfolio when:

it is known that the borrower is declared in commercial bankruptcy, according to the Commercial Bankruptcy Law, or

its amortizations have not been settled in full in the terms originally agreed, considering for this purpose 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 overdue;

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 overdue for the respective interest payment, or 30 or more calendar days overdue for the principal;

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

if the debts consist of revolving credits and present 60 or more calendar days overdue, and

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

With respect to the due dates referred to in item 2 of the previous paragraph, monthly periods may be used, regardless 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 an inactive day, said term will be understood to be concluded on the next business day.

Restructurings and Renewals

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

Credits with a single payment of principal at maturity and periodic interest payments, as well as credits with a single payment of principal and interest at maturity that are restructured during the term of the credit or renewed at any time will be considered as overdue portfolio as long as there is no evidence of sustained payment.

Current credits with characteristics different from those indicated in the previous paragraph that are restructured or renewed, without at least 80% of the original term of the credit having elapsed, will be considered as continuing to be current, only when the borrower has:

covered the total accrued interest, and

covered the principal of the original amount of the credit that should have been covered by the date of the renewal or restructuring.

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 comes to current credits with characteristics different from those indicated in the previous paragraph 40 that are restructured or renewed during the course of the final 20% of the original term of the credit, these will be considered current only when the borrower has:

settled the total accrued interest;

covered the total amount of the original credit that should have been covered by the date of the renewal or restructuring, and

covered 60% of the original amount of the credit.

Credits that from their inception are stipulated as revolving, that are restructured or renewed, at any time will be considered current only when the borrower has settled the total accrued interest, the credit does not present overdue billing periods, and there are elements justifying the debtor's payment capacity, that is, the debtor has a high probability of covering said payment.

Except for what is provided in paragraph 39, for the purposes of what is established in this section, those that on the date of the restructuring 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 will not be considered as restructurings:

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.
Currency: provided that the rate corresponding to the new currency is applied.
Payment Date: only in the case that the change does not exceed or modify the periodicity of payments. In no case shall 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 the outstanding balance of the credit is considered as overdue.

For those 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 overdue 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 period in the item of interest income.

Uncollected Accrued Interest

With respect to uncollected accrued interest corresponding to credits that are considered as overdue 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 overdue portfolio.

Regarding overdue credits in which the restructuring agrees to capitalize the uncollected accrued interest previously registered in off-balance sheet accounts, the entity must 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 will be obtained by conducting a study that serves as a basis to determine the different quantifiable events that could affect the amount of the credit portfolio, thereby showing the estimated recovery value.

The amount of said estimate must be determined based on the methodology established and determined by the administration of the entities as well as by additional estimates ordered by the CNBV derived from its supervisory functions, and must be registered in the results of the period of the corresponding period.

Write-offs, Eliminations, and Recoveries of Portfolio

The entity must periodically evaluate whether an overdue credit should remain in the balance sheet, or 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, the entity may opt to eliminate from its assets those overdue credits that are provisioned at 100% according to what is stated in paragraphs 52 and 53, even if they do not meet the conditions to be written off. For such purposes, the entity 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 according to the two preceding paragraphs must 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, 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 foreign currency and in UDIS

For the case of credits denominated in foreign currency and in UDIS, the corresponding estimate for 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 52 and 53, the differential shall be cancelled in the period in which such changes occur against the results of the fiscal year, affecting the same concept or item that originated it, that is, the 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 retain the amount of the assigned credit in the asset and recognize in the liability the amount of the resources from the assignee.

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

Transfer to performing portfolio

Credits that have matured and in which the outstanding balances (principal and interest, among others) are fully paid off, or, which being restructured or renewed credits, comply with the sustained payment of the credit, shall be returned to the performing portfolio.

Presentation standards

Balance sheet

a) the portfolio shall be grouped into performing and non-performing, according to the type of credit, whether by business or commercial activity and financial entities, and in turn, classified according to the nature of the operation;

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

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

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

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

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

g) it shall be presented in off-balance sheet accounts in the item called credit commitments the amount not utilized of the credit lines that the entity has granted, and

h) it shall be presented in off-balance sheet accounts, in the item of accrued but uncollected interest derived from non-performing credit portfolio, the amount of accrued but uncollected interest derived from the credits that remain in the non-performing portfolio.

Income statement

Interest income shall be grouped as accrued interest, the amortization of interest collected in advance, the amortization of fees charged for the granting of credit, the foreign exchange gain and the result from the revaluation of UDIS (creditor balance). Likewise, interest expenses shall be grouped as the amortization of costs and expenses associated with the granting of credit, as well as the foreign exchange loss and the result from the 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 foreign exchange gain or loss, as well as the result from the revaluation of UDIS, which originate from the estimate denominated in foreign currency or in UDIS, respectively.

Fees and charges collected shall be presented in the item of fees and charges collected, fees other than those related to the granting of credit.

It shall be presented in the item of other income (expenses) from operations, the gain or loss derived from the assignment of credit portfolio.

Disclosure standards.

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

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

b) policies and procedures established to determine concentrations of credit risk;

c) breakdown of the performing and non-performing portfolio by type of credit (business or commercial activity and financial entities), distinguishing those denominated in national currency, foreign currency and UDIS;

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

e) in aggregate form, the percentage of concentration and main characteristics of the portfolio by sector, region or economic group, understanding by the latter the groups of natural and legal persons that by their patrimonial or liability links constitute common risks;

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

g) explanation of the main variations in the non-performing portfolio identifying, among others:
restructurings, renewals, adjudications, haircuts, write-offs, transfers to the performing portfolio, as well as from the performing portfolio;

h) brief description of the methodology to determine the preventive estimates for credit risks;

i) balance of the preventive estimate for credit risks, breaking it down by type of credit (business or commercial activity and financial entities);

j) movements that have been made to the preventive estimate for credit risks during the fiscal year by its creation, write-offs, cancellations, haircuts, forgiveness, bonuses, discounts and adjudications, among others;

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

l) amount of non-performing credits that in accordance with paragraph 55 were eliminated from the assets, breaking down those granted to related parties;

m) the main policies and procedures related to the granting of restructurings and renewals, including restructurings or renewals that consolidate several credits from the same borrower, as well as the elements taken into account to evidence sustained payment;

n) total amount restructured and/or renewed by type of credit (business or commercial activity and financial entities). Each of these amounts shall be broken down into:

i. non-performing credits that were restructured or renewed;

ii. restructurings or renewals that were transferred to non-performing portfolio for having been
restructured or renewed, in compliance with paragraph 40;

iii. restructured or renewed credits that remained in the performing portfolio in accordance with paragraphs 41 to 45, and

iv. modified credits that were not considered as restructurings based on paragraph 46.

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

p) total amount of credit portfolio assignments that the entity has carried out;

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

r) breakdown of interest and fees by type of credit (business or commercial activity and financial entities);

s) amount of interest income that was recognized in the credit in question, at the time of the capitalization referred to in paragraph 51, and

t) amount of credit lines registered in off-balance sheet accounts.

D-2 INCOME STATEMENT

Background

Financial information must comply, among other things, with 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 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, entities 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 among entities, and in this way, facilitate the comparability thereof.

Objective of the income statement

The income statement 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 the owners of the same in their capacity as shareholders, during a period determined.

Consequently, the income statement will show the increase or decrease in the equity of the entities, attributable to the operations carried out by them, during a established period.

The provisions in the previous paragraph are not applicable to those items of the entity that by express provision must be incorporated into the accounting capital, other than those coming from the income statement, such as those that make up the comprehensive income (result from valuation of available-for-sale securities, result from valuation of cash flow hedging instruments, 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 criterion D-3 "Statement of changes in equity".

Concepts that make up the income statement

In a broad context, the concepts that make up 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 entities are the following:

financial margin;
financial margin adjusted for credit risks;
result of operations;
result before income taxes;
result before discontinued 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, entities 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 thereof for the user of the financial information. At the end of this criterion a sample income statement prepared with the minimum items referred to in the previous paragraph is shown.

Characteristics of the items that make up the structure of the income statement

Financial margin

The financial margin shall 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).

Income from services and interest

Income derived from the provision of services of storage, custody or conservation of goods or merchandise, as well as from the issuance of deposit certificates and pledge bonds, are considered as income from services.

Interest income is considered as the returns generated by the credit portfolio, contractually called interest, the amortization of interest collected in advance, as well as by premiums and interest from other financial operations typical of entities such as deposits in financial entities, margin accounts, investments in securities, repo operations, as well as the premiums from debt placement.

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

Likewise, revaluation adjustments derived from items denominated in UDIS or in some other general price index, as well as foreign exchange gains, 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 non-performing portfolio, whose accumulation is carried out in accordance with their collection, in accordance with what is established in criterion B-5 "Credit portfolio", form part of this item.

Expenses from operations and interest

Expenses incurred for the purpose of providing the service of storage, custody, transportation or conservation of goods or merchandise are considered as expenses from operations.

Interest expenses are considered as discounts and interest derived from securities liabilities, bank loans and from other organisms, and from subordinated obligations classified as liability, as well as issuance and discount expenses from debt placement.

Likewise, revaluation adjustments derived from items denominated in UDIS or in some other general price index, as well as foreign exchange losses, are considered as 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, shall 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 capital of the entity shall not be considered in this item, since such result must be presented in the item of the corresponding capital.

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 determined period.

Result of operations

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

a) fees and charges collected and paid,

b) the result from intermediation,

c) other income (expenses) from operations other than income or expenses that have been included within the financial margin, and

d) administrative expenses.

Fees and charges collected and paid are those generated by credit operations other than those indicated in paragraphs 12 and 18, loans received, debt placement, and by the provision of services.

Likewise, the result from intermediation is considered as part of the result of operations, understanding by the latter the following concepts:

a) result from fair value valuation of trading securities, derivatives for trading or hedging purposes, available-for-sale securities in fair value hedges, as well as sold collateral;

b) impairment loss or effect from reversal of impairment of securities and derivatives;

c) result from valuation of currencies linked to its social object;

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

e) result from purchase and sale of securities and currencies linked to its social object, and

f) the result from cancellation of financial assets and liabilities derived from derivatives, including the result from purchase and sale of said derivatives, as well as the result from sale of collateral received.

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 administrative expenses, such as:

a) tax recoveries;

b) result from portfolio assignment;

c) impacts on the estimate for uncollectibility or difficult collection;

d) losses;

e) donations;

f) 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;

g) dividends from other permanent investments and permanent investments in associates available for sale;

h) loss from adjudication of goods, result from valuation of adjudicated goods, result in sale of adjudicated goods, as well as the estimate for loss in value of adjudicated goods, and

i) result in sale of real estate, furniture and equipment.

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

Finally, administrative expenses shall be considered within the result of operations, which shall include all types of direct benefits granted to the employees of the entity, profit sharing (PTU) incurred and deferred, fees, rents, promotion and advertising expenses, technology expenses, non-deductible expenses, depreciation and amortizations, the net cost of the period derived from employee benefits, as well as taxes and duties other than income taxes.

Likewise, the amount of the contingency reserve made in the fiscal year is considered as part of this item, in accordance with what is stated in Criterion B-7 "Deposit of Goods".

Result before income taxes.

It shall be the result of operations, incorporating the participation in the result of unconsolidated subsidiaries and associates.

Result before discontinued operations

It is the result before income taxes, decreased by the effect of income tax expenses incurred in the period, increased or decreased as appropriate, by the effects of deferred income taxes generated or realized in the period, in its case, net of its estimate.

Net result

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

Consolidated income statement

When the consolidated income statement is presented, the segregation of the portion of the net result corresponding to the non-controlling interest participation shall be presented as the last item of said financial statement.

Disclosure standards

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

a) composition of the financial margin, identifying by type of currency the income from services and interest and expenses from operations and interest, distinguishing them by the type of operation from which they come (provision of storage, custody, transportation or conservation services of goods or merchandise, issuance of deposit certificates and pledge bonds, investments in securities, repos, credit portfolio, securities liabilities, as well as bank loans and from other organisms, among others);

b) in the case of credit portfolio, in addition, the amount of interest income shall be identified by type of credit (business or commercial activity and financial entities);

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

d) amount of collected fees disaggregated by the main products handled by the entity, and

e) the amounts of fees 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 fees for initial origination and restructuring of such credits and the costs and expenses associated with such fees, as well as elements that justify their direct relationship with the granting of credit.

NAME OF THE GENERAL WAREHOUSE COMPANY

ADDRESS

INCOME STATEMENT OF THE ___________________ TO _________________ OF ___

EXPRESSED IN CURRENCY OF PURCHASING POWER OF ________ OF _______ (1)

(Amounts in thousands of pesos)

Income from services
$

Income from interest
"

Expenses from operations
"

Interest expenses
"

Result from net monetary position (financial margin) " _____

FINANCIAL MARGIN
$

Preventive estimate for credit risks
" _____

FINANCIAL MARGIN ADJUSTED FOR CREDIT RISKS
$

Fees and charges collected
$

Fees and charges paid
"

Result from intermediation
"

Other income (expenses) from operations
"

Administrative expenses
" _____
" _____

RESULT OF OPERATIONS
$

Participation in the result of unconsolidated subsidiaries and associates "

RESULT BEFORE INCOME TAXES
$

Income taxes incurred
$

Deferred income taxes (net)
" _____
" _____

RESULT BEFORE DISCONTINUED OPERATIONS
$

Discontinued operations
" _____

NET RESULT
$ _____

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

(1) This line shall be omitted if the economic environment is "non-inflationary".

A-2 APPLICATION OF PARTICULAR STANDARDS

Objective and scope

This criterion aims to clarify the application of specific norms within the NIF, as well as clarifications thereof.

The subject matter of this criterion includes:

the application of some of the specific norms issued in the NIF, and

the clarifications to the specific norms contained in the NIF.

Financial Reporting Standards

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

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

Accounting changes and error corrections ................................................................

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

Subsequent events after the date of the financial statements ...................................................

B-13

Earnings per share .............................................................................................

B-14

Conversion of foreign currencies ..........................................................................

B-15

Determination of fair value ............................................................................

B-17

NIF Series C "Norms applicable to specific concepts of 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 instruments receivable ............................................................

C-16

Obligations associated with the retirement of property,

plant and equipment

..................................................................................................

C-18

Financial instruments payable ...........................................................................

C-19

Financial instruments to collect principal and interest ....................................................

C-20

Joint control agreements .................................................................................

C-21

NIF Series D "Norms applicable to profit determination problems"

Revenue from contracts with customers ...........................................................................

D-1

Costs from contracts with customers .............................................................................

D-2

Employee benefits ....................................................................................

D-3

Income taxes ..........................................................................................

D-4

Leases ..................................................................................................

D-5

Capitalization of comprehensive financing result ......................................................

D-6

Share-based payments ...................................................................................

D-8

Additionally, entities shall observe the NIFs issued by the CINIF on topics not foreseen in the accounting criteria for credit unions, 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 credit unions, and

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

Clarifications to the specific norms contained in the NIF

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

B-8

Consolidated or combined financial statements

Regarding those specific purpose entities (SPEs) created prior to February 4, 2011, where control has been maintained, they will not be obligated to apply the provisions contained in NIF B-8, regarding the said SPE.

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 the entity itself, in accordance with the general provisions applicable to the financial information of credit unions published by the CNBV.

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

B-10

Effects of inflation

Determination of the monetary position

Regarding 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, where applicable, those that affect from those that do not affect the financial margin.

Price index

The entity 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 comes from financial margin items; otherwise, it will be presented within the item of other income (expenses) of the operation.

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 similar item.

B-15

Conversion of foreign currencies

Scope

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, they shall convert the respective currency to United States dollars. To carry out such conversion, they shall consider the quotation that applies to the corresponding currency in relation to the aforementioned 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 agreements", B-4 "Derivatives and hedging operations", B-5 "Credit portfolio" and B-10 "Collection rights", issued by the CNBV, as well as those arising from operating lease transactions indicated in paragraphs 49 to 51 of this criterion, shall not be included, since the norms of recognition, valuation, presentation and disclosure applicable 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 income (expenses) of the operation.

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.

For the loans that entities grant to their officials and employees, for collection rights, as well as for those accounts receivable other than those indicated in the preceding paragraph and those in paragraph 22, relating to identified debtors whose maturity is agreed from inception to a term greater than 90 natural days, they shall create, where applicable, an estimate that reflects their degree of uncollectability.

Such estimate 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", after 15 natural days following the date on which they have been transferred as various debtors, these shall be classified as overdue debts and an estimate shall be simultaneously constituted for their total amount.

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

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

at 90 natural 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

settling accounts.

The concepts resulting from operations between the parent company and branches shall be cleared at least by the close of each month, so they shall not have a balance on that date.

C-4

Inventories

What is established in Bulletin C-4 shall be applicable to the commercialization and transformation activities of goods, merchandise and various articles carried out by the entities, having to present said goods in the balance sheet in the item of merchandise inventory, while in the statement of results they shall present their income and cost of sales in the item of other income (expenses) of the operation.

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 and B-4 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 apply.

Stock market liabilities

Stock market liabilities, that is, those arising from fundraising through the securities market, shall be distinguished according to the following classification:

securities placed at par value, and

securities placed at a price different from par value (at a premium or discount).

Securities placed at par value shall be recorded taking as a basis the contractual value of the obligation, recognizing accrued interest directly in the results of the period as an interest expense.

Those securities placed at a price different from par value, in addition to what is established in the preceding paragraph, shall recognize a deferred charge or credit for the difference between the par value of the security and the amount of cash received for it. Likewise, when securities 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 placement, shall be recorded as a deferred charge or credit, as applicable, and shall be recognized in the results of the period as interest expenses or income, as applicable, as they accrue, taking into consideration the term of the security that gave rise to it, in the 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 gave rise to it and the deferred charge for issuance expenses shall be presented within the item of other assets.

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

Bank loans, member loans and loans from other organizations

For their recognition, they shall adhere to what is established in paragraph 30.

They shall disclose in notes to the financial statements the total amount of bank loans, from their members, as well as from other organizations, indicating for each one the type of currency, as well as the maturity terms, guarantees and average weighted rates to which, where applicable, they are subject.

In the case of credit lines received by the entity in which not the entire authorized amount is utilized, the unused portion of them shall not be presented in the balance sheet. However, entities shall 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.

Commissions paid derived from loans received by the entity or from the placement of debt, shall be recorded on the date they are generated in the results of the period, in the item of commissions and fees paid.

Letters of credit

Regarding those letters of credit that the entity issues upon prior receipt of their amount, they are subject to Bulletin C-9.

The liability generated by the issuance of the letters of credit referred to in the preceding paragraph, shall be presented in the balance sheet, within the item of other accounts payable.

C-11

Equity

At the foot of the balance sheet, they shall disclose the historical amount of share capital.

D-3

Employee benefits

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

Additionally, through notes to the financial statements, it shall be disclosed:

the manner in which the Workers' Participation in Profits (PTU) was determined, explaining the bases used for its calculation, and

the identification of obligations for employee benefits in the short and long term.

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

D-4

Income taxes

For the case of income taxes incurred, it shall be disclosed through notes to the financial statements the manner in which these were determined, explaining the bases used for their calculation.

Regarding the disclosure required in NIF D-4 on the concepts of temporary differences, additionally, those related to the financial margin and to the main operations of the entities shall be disclosed, for example, those originated by the preventive estimate for credit risks and by the valuation of shares.

D-5

Leases

Capitalizable leases

Scope

What is established in this Bulletin shall 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 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 the 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 lessor

For the amount of amortizations that have not been settled within 30 natural days following the payment due date, the lessor shall create the corresponding estimate, suspending the accumulation of rents, controlling them in off-balance sheet accounts in the item of other registration accounts.

The lessor shall present the receivable account in the balance sheet in the item of other accounts receivable, and the lease income in the item of other income (expenses) of the operation in the statement of results.

In addition to the disclosure required in paragraph 62 of Bulletin D-5, the lessor shall disclose in notes to the financial statements the amount of lease income recognized in the results of the period.

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 administrative and promotional expenses.

Subleases and similar transactions

Accounting for the original lessee

The effects on the results of the period referred to in paragraph 76 of Bulletin D-5, relative to the termination of the original lease, shall be presented in the item of other income (expenses) of the operation in the statement of results.

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) the other costs associated with those 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 expenses or other income (expenses) of the operation, as applicable, based on what is established in 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-5 CREDIT PORTFOLIO

Objective and scope

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

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

The following are not subject to this criterion:

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

The accounting norms relative to securities issued in series or in mass, which are quoted on 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".

The collection rights that the entity acquires that are in the circumstances foreseen in criterion B-10 "Collection rights".

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 factoring, discount or assignment of credit rights operation, which the assignee does not finance to the factor or assignor and which is obligated to deliver to the latter, once the collection of the portfolio subject to factoring, discount or assignment of credit rights 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 shall be understood that there is payment capacity when the conditions that, for credit unions, to that effect, are established in the General Provisions

general provisions applicable to general warehouse receipts, exchange houses, credit unions and multiple-object financial companies regulated.

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

Overdue Portfolio.- Composed of credits:

Whose borrowers are declared in commercial insolvency proceedings, with the exception of those credits that:

Continue to receive payment in terms of what is provided in fraction VIII of article 43 of the Commercial Insolvency Law, or

ii.

are granted under the protection of article 75 in relation to fractions II and III of article 224 of the aforementioned Law; or

Whose principal, interest or both, have not been settled in the terms originally agreed, considering for this purpose what is established in paragraphs 65 to 79 of this criterion.

Current Portfolio.- The one integrated by credits that are up to date in their payments of both principal and interest, as well as by those credits with overdue principal or interest payments that have not been located in the situations 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.- 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.

Assignment of Credit Rights.- Those financing operations by virtue of which the ownership of credit rights is transferred to any entity. Credit portfolio acquisitions will not be considered Assignment of Credit Rights Operations.

Commission for the granting of the credit.- Exists when the entity and the borrower have agreed from the date the credit was contracted, 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.- It 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 the accrued interest that has been recognized in accordance with what is established in this criterion, the insurance that, if any, had been financed, the collections of principal and interest, as well as by the discounts, waivers, bonuses and discounts that have been granted.

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

Commercial Credits.- Direct or contingent credits, including bridge credits denominated in national currency, foreign currency or investment units (UDIs), as well as the interest they generate, granted to their members whether they are legal entities or natural persons with business activity and destined for their commercial or financial business; including credits for financial factoring, discount and assignment of credit rights operations and credits for capitalizable leasing operations that are celebrated with said legal or natural persons; credits granted to trustees acting under the protection of trusts and credit schemes commonly known as "structured" in which there is an asset encumbrance that allows evaluating the risk associated with the scheme individually.

Restricted Credits.- Those credits are considered as such with respect to which there are circumstances under which they cannot be disposed of or used, and which must be presented as restricted; for example, the credit portfolio that the assigning entity grants as guarantee or collateral.

Debtor of the credit rights.- The natural or legal person to whom the credit rights transferred from the factor (assignor) to the factor (assignee) in a financial factoring, discount or assignment of credit rights operation are originally enforceable.

Preventive Estimate for Credit Risks.- An impact that is made against the results of the period and that measures that portion of the credit that is estimated will not have viability for collection.

Factor (Assignor).- The natural or legal person who transfers the credit rights they have 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 currency, 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 (Assignee).- The entity that acquires the credit rights in favor of the factor (Assignor).

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

Option to purchase at reduced price.- 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 assuming that such option will be exercised.

Discount Operation.- Operation by virtue of which the discounting entity obligates itself to anticipate to the discounted party the amount of a monetary credit, against a third party and with future maturity, in exchange for the alienation in favor of the discounting Institution of said credit and the deduction of an interest.

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

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

Sustained payment of the credit.- Payment compliance by the borrower without delay, for the total amount due 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 a display.

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 must 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 34 will be applicable to them.

In the case of consolidated credits, if in accordance with paragraph 79, 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 must be attended to.

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 purposes are at least the following: the intrinsic probability of default of the borrower, the guarantees granted to the restructured or renewed credit, the payment priority against other creditors and the liquidity of the borrower before the new financial structure of the financing.

In the case of 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 situations occurs:

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

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

The early payment of the 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 the amortizations of restructured or renewed credits that are paid without having elapsed the natural days equivalent to the periods required in accordance with the previous paragraph 30.

Restructuring.- It 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 (for example UDI);

granting of a grace period with respect to the compliance of payment obligations in accordance with the original terms of the credit, or

extension of the term of the credit.

Renewal.- It is that operation in which the balance of a credit is settled 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 member is part, a joint obligor of said member or another person who by their patrimonial links constitutes common risks.

Notwithstanding the above, 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 settled the total of the payments due 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 by a borrower or counterparty in the operations carried out by entities, including the real or personal guarantees granted to them, as well as any other mitigation mechanism used by entities.

Unpaid Balance.- It 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 any, 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.

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. Such collection will be amortized during the life of the credit under the straight-line method against the results of the period, 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 kept in off-balance sheet accounts.

Letters of credit that have been issued based on the granting of credits are included within this category.

Partial payments in kind

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

Capitalizable leasing operations

In capitalizable leasing operations, that is, those that meet the requirements established in criterion A-2 "Application of particular norms", 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 leasing operation, against the cash outflow and the corresponding financial income to accrue. Such financial income to accrue will be registered as a deferred credit, which will be recognized based on the unpaid balance of the credit against the results of the period, 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 themselves to adopt the option to purchase at reduced price, the entity must recognize its amount as part of the credits for capitalizable leasing operations, against a deferred credit which will be amortized on a straight-line basis 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 time of the sale against the results of the period as other income (expenses) of the operation.

Financial factoring, discount and assignment of credit rights operations

At the beginning of the operation, the value of the portfolio received will be recognized in the asset against the cash outflow, the underwriting agreed recognized as other accounts payable, and, if any, the financial income to accrue that derives from financial factoring, discount or assignment of credit rights operations.

The financial income to accrue referred to in the previous paragraph, will be determined, if any, by the difference between the value of the portfolio received minus the underwriting and the cash outflow. Such financial income to accrue 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 any, are granted will be recognized as part of the financial factoring, discount or assignment of credit rights operations, within the concept of commercial credits.

Commissions charged for the granting of the credit

The commissions charged for the granting of the credit will be registered as a deferred credit, which will be amortized against the results of the period as an 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 the commissions charged for restructuring or renewal of credits, these 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 period as an 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 with respect 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 disbursed, at that moment they will be recognized as a deferred credit, which will be amortized against the results of the period as an interest income under the straight-line method for a period of 12 months. In case the credit line is canceled before the end of the aforementioned 12-month period, the balance pending to be amortized must be recognized directly in the results of the period in the item of commissions and fees charged, on the date the cancellation of the line occurs.

Associated costs and expenses

The costs and expenses associated with the granting of the credit, will be recognized as a deferred charge, which will 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 previous paragraph, associated costs or expenses with the granting of the credit will be understood only as 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 that is not included in the previous paragraph, among them those related to promotion, advertising, potential customers, 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 period as they accrue in the item corresponding according to the nature of the cost or expense.

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

Commissions and fees charged

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

Acquisitions of credit portfolio

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

when the acquisition price is less than the contractual value of the same, 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 any, is constituted in accordance with what is indicated in the following paragraph and the excess as a deferred credit, which will be amortized as the 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 the 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 will be taken directly to the results of the period on the date of acquisition.

Preventive estimate for credit risks of acquisitions of portfolio

The entity will constitute for any type of acquired credit against the results of the period the preventive estimate for credit risks that corresponds, in accordance with what is stated in paragraphs 86 to 88, taking into account the defaults that the credit may have presented since its origin.

Transfer to overdue portfolio

The unpaid balance in accordance with the payment conditions established in the credit contract, will be registered as overdue portfolio when:

It is known that the borrower is declared in commercial insolvency proceedings, in accordance with the Commercial Insolvency Law.

Without prejudice to what is provided in this numeral, credits that continue to receive payment in terms of what is provided in fraction VIII of article 43 of the Commercial Insolvency Law, as well as credits granted under the protection of article 75 in relation to fractions II and III of article 224 of the aforementioned Law, will be transferred to overdue portfolio when they incur in the situations provided for in numeral 2 next,

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

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

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

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

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

the immediate collection documents referred to in criterion B-1 "Availability", will be reported as overdue portfolio at the moment when said event occurs.

With respect to the maturity periods referred to in numeral 2 of the previous paragraph, monthly periods may be used, regardless 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, if the established deadline expires on a non-business day, it shall be understood that said deadline is concluded on the first subsequent business day.

In the case of credit portfolio acquisitions, for the determination of the days past due and their corresponding transfer to non-performing portfolio as indicated in the three paragraphs above, the defaults that the borrower has presented since its inception 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 34 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:

liquidated the total of the interest due, and

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

Regarding credit facilities granted 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 taking into account the characteristics and conditions applicable to the restructured or renewed facility or facilities. When such analysis concludes that one or more of the facilities granted under a credit line must be transferred to non-performing portfolio due to their restructuring or renewal and such facilities, individually or collectively, represent at least 25% of the total disbursed balance of the credit line as of the date of the restructuring or renewal, said balance, as well as its subsequent disbursements, must be transferred to non-performing portfolio as long as there is no evidence of sustained payment of the facilities that originated the transfer to non-performing portfolio, and the total of the facilities granted under the credit line have met the obligations due as of the date of the transfer to performing portfolio.

Performing credits with characteristics different from those indicated in paragraphs 70 to 72 above that are restructured or renewed, without at least 80% of the original credit term having elapsed, will be considered to continue being performing, only when:

the borrower has covered the total of the accrued interest as of the date of the renewal or restructuring, and

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

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 there is evidence of sustained payment.

When it comes to performing credits with characteristics different from those indicated in paragraphs 70 to 72 above that are restructured or renewed during the final 20% of the original credit term, these will be considered performing only when the borrower has:

liquidated the total of the accrued interest as of the date of the renewal or restructuring;

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

covered at least 60% of the original credit amount.

The requirement referred to in paragraphs 73 and 75 above in their corresponding subsections a) will be considered met when, having covered the accrued interest as of the last cutoff date, the time elapsed between said date and the restructuring or renewal does not exceed the lesser of half of the current payment period and 90 days.

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 the conditions established in paragraphs 73 or 75 above, as applicable, the entity has elements that justify the debtor's payment capacity. Such elements must be duly documented and integrated into the credit file.

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 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 due to such restructuring or renewal, then the total balance of the consolidated credit must be transferred to non-performing portfolio.

The provisions in paragraphs 69 to 79 above shall not apply 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 more of the following original credit conditions:

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 or unit of account: as long as the corresponding rate for the new currency or unit of account is applied.
Payment date: only in the case that the change does not imply exceeding or modifying the periodicity of 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 must be suspended at the moment the outstanding balance of the credit is considered overdue. 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 leasing operations, must be suspended at the moment the outstanding balance of the credit is considered overdue.

To credits that contractually capitalize interest to the amount of the debt, the suspension of interest accrual established in the previous paragraph shall apply.

As long as the credit remains in the non-performing portfolio, the control of accrued interest or financial income will be carried out in off-balance sheet accounts. In the event that such interest or financial income is collected, it will be recognized directly in the results of the period under the item of interest income, canceling in the case of capitalizable leasing, financial factoring, discount or assignment of credit rights, the corresponding deferred credit.

Unpaid Accrued Interest

With respect to interest or financial income accrued and not collected 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 time of the transfer of the credit as non-performing portfolio.

Regarding overdue credits in which their restructuring agrees to the capitalization of previously recorded unpaid accrued interest in off-balance sheet accounts, the entity 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

In accordance with the relevant provisions, the preventive estimate for credit risks will be determined based on the rules for the classification of the credit portfolio issued by the CNBV or those that replace them.

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 additional estimates required in various regulations and those ordered and recognized by the CNBV, and must be recognized in the results of the period that corresponds.

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 methodologies for the classification of the credit portfolio, and on which prior to their constitution, entities 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

The entity must periodically evaluate whether 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, the entity may opt to eliminate from its assets those overdue credits that are provisioned at 100% according to what is indicated in paragraphs 86 to 88, even if they do not meet the conditions to be written off. For such purposes, the entity 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 paragraphs 89 and 90 above, must 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, 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 Foreign Currency and UDIS

For the case of credits denominated in foreign currency and in UDIS, the estimate corresponding to said credits will 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 86 to 88, the differential must 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 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 must conserve in the asset the amount of the assigned credit and recognize in the liability the amount of the 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 must be canceled.

Transfer to Performing Portfolio

Overdue credits will be returned to the performing portfolio in which the pending payment balances (principal and interest, among others) are fully liquidated, or, that being restructured or renewed credits, they comply with the sustained payment of the credit.

Presentation Standards

Balance Sheet

the portfolio will be grouped into performing and non-performing, according to the type of credit, that is, unrestricted credits and restricted credits, and in turn classified according to the nature of the operation (documented with real estate guarantee, with other guarantees, without guarantee, financial factoring operations, discount and assignment of credit rights and capitalizable leasing operations);

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

the amount of credits for capitalizable leasing operations, financial factoring, discount and assignment of credit rights, both performing and non-performing, must be presented net of the deferred credits referred to in paragraphs 46 and 51 respectively, in the case of financial factoring, discount and assignment of credit rights operations, it will be presented net of the corresponding exposure;

interest collected in advance must be presented together with the portfolio that gave rise to it;

the deferred charge that may have been generated by the acquisition of portfolio must be presented in the item of other assets;

in the item of deferred credits and advance collections, the purchase option at a reduced price, the excess that may have originated from the acquisition of portfolio referred to in subsection a) of paragraph 63, as well as the commissions that are received in advance to the accrual of the related income will be presented;

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

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

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

it will be presented in the item of bank loans, partners and other organisms the liability derived from credit portfolio assignment operations;

it will be presented in off-balance sheet accounts in the item called credit commitments, the unused amount of the credit lines that the entity has granted, and

it will be presented in off-balance sheet accounts, in the item of accrued interest not collected derived from non-performing credit portfolio, the amount of accrued interest not collected derived from credits that remain in non-performing portfolio, as well as the accrued financial income not collected.

Income Statement

Interest income will be grouped as accrued interest, the amortization of interest collected in advance, the financial income accrued in capitalizable leasing operations, financial factoring, discount and assignment of credit rights, the amortization of commissions collected for the granting of credit, the exchange gain and the result by UDIS valuation (creditor balance). Likewise, interest expenses will be grouped as the amortization of costs and expenses associated with the granting of credit, as well as the exchange loss and the result by UDIS valuation (debtor balance).

It will 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 UDIS valuation, which originate from the estimate denominated in foreign currency or in UDIS, respectively.

Commissions distinct from those related to the granting of credit will be presented in the item of commissions and fees collected.

The amortization of the deferred credit or deferred charge, or in its case the application referred to in subsection c) of paragraph 63, derived from the acquisitions of credit portfolios, from the difference between the contractual value and the acquisition price up to the amount of the estimate for credit risks referred to in subsection a) of paragraph 63, as well as the gain or loss derived from the assignment of credit portfolio will be presented in the item of other income (expenses) of the operation, as applicable.

In the item of other income (expenses) of the operation, 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 goods in capitalizable leasing to a third party will be presented.

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;

accounting policies and methods used to identify troubled commercial credits, whether performing or overdue;

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

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 performing and overdue;

breakdown of the performing restricted and unrestricted portfolio and overdue by type of credit (documented with real estate guarantee, with other guarantees, without guarantee, financial factoring operations, discount and assignment of credit rights and capitalizable leasing operations), distinguishing those denominated in national currency, foreign currency and UDIS;

identification by type of credit (documented with real estate guarantee, with other guarantees, without guarantee, financial factoring operations, discount and assignment of credit rights and capitalizable leasing operations), of the balance of the non-performing portfolio 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 overdue;

aggregated, the percentage of concentration and main characteristics of the portfolio by sector, region or economic group, understanding by the latter the groups of individuals and legal entities that by their patrimonial or responsibility 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 their amortization; description of the concepts that integrate 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 non-performing portfolio identifying, among others: restructurings, renewals, adjudications, discounts, write-offs, transfers to the performing portfolio, and from the performing portfolio;

amount of those credits that, in terms of numeral 1 of paragraph 65 above, have remained in the performing portfolio for continuing to receive payment in terms of what is provided in fraction VIII of article 43 of the Mercantile Bankruptcy Law, or by having been granted under the support of article 75 in relation to fractions II and III of article 224 of said Law. Said amount must be disclosed stratified, if applicable, by each article and, if applicable, fraction;

brief description of the methodology to determine 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 (documented with real estate guarantee, with other guarantees, without guarantee, financial factoring operations, discount and assignment of credit rights and capitalizable leasing operations);

balance of the preventive estimate for credit risks, disaggregating it according to the methodologies for the classification of the credit portfolio, as well as by type of credit (documented with real estate guarantee, with other guarantees, without guarantee, financial factoring operations, discount and assignment of credit rights and capitalizable leasing operations);

movements that have been made to the preventive estimate for credit risks during the period by its creation, write-offs, cancellations, discounts, forgiveness, bonuses, discounts and adjudications, among others;

amount derived from the cancellation of the preventive estimate for credit risks, and the reasons that motivated said 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 in accordance with paragraph 90 were eliminated from the assets, disaggregating those granted to related parties;

the main policies and procedures related to 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 accumulated amount of what was restructured or renewed by type of credit (documented with real estate guarantee, with other guarantees, without guarantee, financial factoring operations, discount and assignment of credit rights and capitalizable leasing operations) distinguishing those originated in the period. Each of these amounts must be disaggregated in:

overdue credits that were restructured or renewed;

ii.

restructurings or renewals that were transferred to non-performing portfolio for having been restructured or renewed, in compliance with paragraph 70;

iii.

restructured or renewed credits that remained in the active portfolio in accordance with

paragraphs 71 to 78;

iv.

consolidated credits that, as a result of a restructuring or renewal, were transferred to the overdue portfolio, in accordance with paragraph 79, and

restructured credits to which the criteria regarding transfer to the overdue portfolio were not applied based on paragraph 80.

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

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

total amount of credit portfolio assignments made by the entity;

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

breakdown of interest and commissions by type of credit (documented with real estate collateral, with other collateral, without collateral, financial factoring operations, discount or assignment of credit rights, and capitalizable leasing operations);

aa)

amount of interest income recognized on the credit in question, at the time of capitalization referred to in paragraph 85;

bb)

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

cc)

brief description of the effects on the credit portfolio derived from the application of prudential rules issued by the CNBV, as well as additional estimates required in various regulations and those ordered and recognized by the CNBV.

D-2 STATEMENT OF RESULTS

Background

The financial information must meet, among other things, the objective 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

The objective of this standard is 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 has the objective of presenting 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 the owners of the same in their capacity as owners, 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 in the previous paragraph do not apply to those items of the entity that by express provision must be incorporated into the accounting capital, other than those coming from the statement of results, such as those that make up comprehensive income (result from valuation of available-for-sale securities, 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 Capital".

Concepts Integrating the Statement of Results

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

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 income taxes;
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 said statement of results or through notes to the financial statements, the content of the concepts they consider necessary in order to show the results thereof for the user of the financial information. At the end of this standard, a statement of results prepared with the minimum items referred to in the previous paragraph is shown.

Characteristics of the Items Comprising the Structure of the Statement of Results

Financial Margin

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

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 financial income accrued in capitalizable leasing operations, as well as premiums and interest from other financial operations typical of entities such as deposits in financial entities, margin accounts, investments in securities, repo operations, as well as premiums for the placement of debt.

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

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

Interest collected relating to credits previously classified as overdue portfolio, the accumulation of which is carried out in accordance with their collection, as established in standard B-5 "Credit Portfolio", forms part of this item.

Interest Expenses

Interest expenses are considered to be premiums, discounts, and interest derived from stock market liabilities and bank loans, from partners and other organizations, as well as issuance and discount expenses for the placement of debt.

Likewise, valuation adjustments derived from items denominated in UDIS or in 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 are part of the financial margin.

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

Net Monetary Position Result (Financial Margin)

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

The net monetary position result arising from items that are registered directly in the accounting capital of the entity will not be considered in this item, since said result must be presented in the corresponding capital item.

Financial Margin Adjusted for Credit Risks

It corresponds to the financial margin reduced by 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,

intermediation result,

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 11 and 16, received loans, debt placement, and the provision of services among others, administration of resources, fiduciary activities, and the granting of guarantees.

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

result from fair value valuation of securities for trading, derivatives for trading or hedging purposes, available-for-sale securities in fair value hedges, as well as sold collateral;

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

result from valuation of currencies linked to its social object;

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

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

result from the cancellation of financial assets and liabilities arising from derivatives, including the result from the purchase and sale of said derivatives, as well as the result from the sale of received collateral.

Additionally, other operating income (expenses) are also recognized within the operating result, considered as such the income and expenses derived from the operation of the entity and that are not included in the previous concepts, nor form part of administration and promotion expenses, such as:

recoveries of taxes and receivable rights;

result from acquisition or assignment of portfolio;

financial cost for capitalizable leasing;

allocations to the estimate for uncollectability or difficult collection;

losses;

dividends from other permanent investments and permanent investments in associates available for sale;

donations;

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

income and cost of sales from commercialization and transformation activities of goods, merchandise, and various articles.

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

Finally, administration and promotion expenses must be considered within the operating result, which must include all types of direct benefits granted to the employees of the entity, PTU caused and deferred, fees, rents, insurance and bonds, promotion expenses, technology expenses, non-deductible expenses, technical assistance expenses, maintenance expenses, consumables and minor supplies, depreciation and amortization, the net cost of the period derived from employee benefits, as well as taxes and duties other than income taxes.

Result Before Income Taxes

It will be the operating result, incorporating the participation in the result of unconsolidated subsidiaries, associates, and joint ventures.

Result Before Discontinued Operations

It is the result before income taxes, reduced by the effect of income tax expenses incurred in the period, increased or decreased as appropriate, by the effects of deferred income taxes generated or realized in the period, if applicable, net of their estimate.

Net Result

Consolidated Statement of Results

When the consolidated statement of results 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 the notes to the financial statements:

composition of the financial margin, identifying by currency type the interest income and interest expenses, distinguishing them by the type of operation from which they come (investments in securities, repos, credit portfolio, stock market liabilities, as well as bank loans, from partners and other organizations, among others);

in the case of credit portfolio, additionally, the amount of interest income by type of credit must be identified (documented with real estate collateral, with other collateral, without collateral, financial factoring operations, discount or assignment of credit rights, and capitalizable leasing operations);

composition of the intermediation result, identifying the result from fair value valuation and, if applicable, the result from purchase and sale, according to the type of operation from which they come (investments in securities, as well as sold collateral);

amount of charged commissions disaggregated by the main products handled 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 their amortization; description of the concepts that integrate 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 CREDIT UNION

ADDRESS

STATEMENT OF RESULTS FROM ____________ TO ________________ OF _____

EXPRESSED IN CURRENCY OF PURCHASING POWER OF _____ OF _______ (1)

(Numbers in thousands of pesos)

Interest Income

Interest Expenses

Net Monetary Position Result (Financial Margin)

FINANCIAL MARGIN

Preventive Estimate for Credit Risks

FINANCIAL MARGIN ADJUSTED FOR CREDIT RISKS

Commissions and Fees Charged

Commissions and Fees Paid

Intermediation Result

Other Operating Income (Expenses)

Administration and Promotion Expenses

OPERATING RESULT

Participation in the result of unconsolidated subsidiaries, associates, and joint ventures

RESULT BEFORE INCOME TAXES

Income Taxes Incurred

Deferred Income Taxes (net)

RESULT BEFORE DISCONTINUED OPERATIONS

Discontinued Operations

NET RESULT

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

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

A-2 APPLICATION OF PARTICULAR STANDARDS

Objective and Scope

The objective of this standard is to specify the application of particular standards of the Financial Information Standards (NIF), as well as clarifications thereof.

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 Exchange Houses", 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 Series B "Standards Applicable to Financial Statements as a Whole"

Accounting Changes and Corrections of Errors

...............................................................

B-1

Comprehensive Income

.................................................................................................

B-4

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 Date of the Financial Statements

..................................................

B-13

Earnings per Share

..............................................................................................

B-14

Determination of Fair Value

............................................................................

B-17

NIF Series C "Standards Applicable to Specific Concepts of Financial Statements"

Accounts Receivable

.............................................................................................

C-3

Prepayments

..............................................................................................

C-5

Property, Plant and Equipment

..................................................................................

C-6

Investments in Associates and Other Permanent Investments

................................................

C-7

Intangible Assets

..............................................................................................

C-8

Provisions, Contingencies, and Commitments

..................................................................

C-9

Accounting Capital

.................................................................................................

C-11

Financial Instruments with Characteristics of Liability, Equity, or Both

.........................

C-12

Impairment in the Value of Long-Term Assets and Their Disposal

....................................

C-15

Impairment of Financial Instruments Receivable

............................................................

C-16

Obligations Associated with the Disposal of Property, Plant, and Equipment

....................................

C-18

Financial Instruments Payable

............................................................................

C-19

Financial Instruments to Collect Principal and Interest

....................................................

C-20

NIF Series D "Standards Applicable to Results Determination Problems"

Revenue from Contracts with Customers

............................................................................

D-1

Costs from Contracts with Customers

.............................................................................

D-2

Employee Benefits

....................................................................................

D-3

Income Taxes

.........................................................................................

D-4

Leases

.................................................................................................

D-5

Capitalization of Comprehensive Financing Result

.....................................................

D-6

Share-Based Payments

...................................................................................

D-8

Additionally, entities shall observe the NIFs issued by CINIF on topics not foreseen in the accounting standards for exchange houses, 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 standards for exchange houses, 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 in its case, disclosure, established by CINIF. In virtue of this, entities observing what is established in the previous paragraph, must 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 societies are exempt from the uniform recognition of accounting standards for exchange houses, solely with respect to the restatement of financial statements, considering that this standard is not applicable to investment societies.

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 must be attended to:

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

Price Index

The entity must use the value of the Investment Unit (UDI) as the price index.

Net Monetary Position Result

The net monetary position result (REPOMO) that has not been presented directly in accounting capital 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 comes 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 accounting capital, must be presented in the accounting capital account corresponding to its nature, for example, the REPOMO attributable to the effect from valuation of available-for-sale securities must be presented in the item similar to it.

C-3

Accounts Receivable

Scope

For the purposes of Bulletin C-3, accounts receivable derived from the operations referred to in criterion B-3 "Repurchase Agreements" issued by the CNBV shall not be included, as the applicable recognition, valuation, presentation, and disclosure standards are contemplated therein.

Loans to Officials and Employees

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

Estimation for Uncollectibility or Difficult Collection

For loans granted by entities to their officials and employees, as well as for those accounts receivable other than those in paragraph 16, relating to identified debtors whose maturity is agreed from inception to a term greater than 90 natural days, an estimation reflecting their degree of uncollectibility shall be created, where applicable.

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

With respect to the operations referred to in criterion B-1 "Availability," 15 natural days following the date on which they have been transferred as other debtors, these shall be classified as overdue debts and an estimation for their total amount shall be simultaneously established.

The estimation of accounts receivable not included in paragraphs 14 and 16 shall be established for the total amount of the debt according to the following terms:

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

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

The entity shall periodically evaluate whether the accounts receivable referred to in paragraph 16 should remain in the balance sheet, or be written off in the event that there is evidence that formal collection efforts have been exhausted or the practical impossibility of recovering the debts has been determined. Such write-off shall be carried out by canceling the outstanding balance of the account receivable against the estimation for uncollectibility or difficult collection. When the amount to be written off exceeds the balance of its associated estimation, the difference shall be recognized in the results of the period as other expenses.

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

tax balances in favor;

creditable value-added tax, and

settling accounts.

Items resulting from operations between the parent company and branches shall be cleared at least by the close of each month, and therefore shall not show a balance on that date.

C-7

Investments in Associates and Other Permanent Investments

With respect to the requirements for the application of the equity method referred to in NIF C-7, investment societies are exempt from the uniform recognition of accounting criteria for exchange houses, solely with regard to the restatement of financial statements, considering that such criterion is not applicable to investment societies.

C-9

Liabilities, Provisions, Contingent Assets and Liabilities, and Commitments

Scope

For the purposes of Bulletin C-9, liabilities relating to the operations referred to in criterion B-3 are not included, as these are contemplated in said criterion.

Bank Loans, Loans from Other Organizations, and Shareholder Loans

Bank loans, loans from other organizations, and shareholder loans shall be recorded taking as a basis the contractual value of the obligation, recognizing accrued interest directly in the results of the period as an interest expense.

The total amount of bank loans, as well as those from other organizations and shareholders, shall be disclosed in notes to the financial statements, indicating for each the type of currency, as well as the maturity terms, guarantees, and weighted average rates to which they are subject, where applicable.

In the case of credit lines received by the entity in which not all of the authorized amount is utilized, the unused portion shall not be presented in the balance sheet. However, entities shall disclose the unused amount through notes to the financial statements, in accordance with criterion A-3 "Application of General Standards," regarding the disclosure of financial information.

Commissions paid derived from loans received by the entity shall be recorded on the date they are generated in the results of the period, under the item of commissions and fees paid.

C-11

Equity

At the balance sheet date, the historical amount of share capital shall be disclosed.

D-3

Employee Benefits

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

Additionally, notes to the financial statements shall disclose:

the manner in which the Workers' Participation in Profits (PTU) was determined, explaining the bases used for its calculation, and

the identification of obligations for employee benefits in the short and long term.

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

D-4

Income Taxes

For the case of income taxes incurred, the manner in which they were determined, explaining the bases used for their calculation, shall be disclosed through notes to the financial statements.

With respect to the disclosure required in NIF D-4 on the concepts of temporary differences, additionally, those related to the financial margin and to the main operations of the entities shall be disclosed; for example, those originated by the valuation of shares shall be mentioned.

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 the 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 the lease liability in the balance sheet as part of the item of other creditors and other accounts payable, and in the statement of income, the lease expense shall be included under the item of administrative expenses.

D-6

Capitalization of the Comprehensive Financing Result

For the purposes of this NIF, Comprehensive Financing Result (RIF) shall be understood as the following concepts: a) interest; b) monetary position result, c) gain 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 income as interest income or expenses or other operating income (expenses), as applicable, based on what is established in the cited NIF D-6.

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

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CONSULT

BY DATE

Do Mo Tu We Th Fr Sa

INDICATORS

Exchange Rate and Rates as of 29/08/2026

UDIS

8.809369

SURVEYS

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