This year we successfully concluded the first implementation stage of Banco Ahorro Famsa with the installation of 101 new bank branches, bringing the total number of locations across Mexico to 277. We now operate one of the ten largest banking branch networks in the country. This infrastructure forms the foundation on which the next stage will rest: the consolidation of Banco Ahorro Famsa.

The acceptance of our straightforward banking products, along with the personalized service we offer, and the inviting atmosphere created through the integration of our banking branch with our store, have been crucial for our success.

As a result, by year-end, 838,000 account holders has established a formal relationship with Banco Ahorro Famsa.

Another benefit that is sought through Banco Ahorro Famsa’s implementation is guaranteeing an optimal source of funding to finance the credits granted to customers who visit Famsa Mexico stores. This is a simple concept that has profound implications for our business fundamentals.

The goal is to create a solid financing base through the different sources of funding available to commercial banks: deposits, CDs, promissory notes, interbank loans, etc. By doing this, we mitigate our exposure to credit market cycles and lower our cost of funding, which in turn allows us to offer better credit conditions to our customers.

Total funding reached Ps$3,550 million, increasing by a multiple of 12 versus 2007, through effective execution of the different financing options available to Banco Ahorro Famsa. Additionally, progress in the integration of our banking and retail platforms made it possible for such funds to be employed in financing 38% of Grupo Famsa’s Mexican portfolio.

Banco Ahorro Famsa’s strategy is straightforward: to become Grupo Famsa’s financial arm by adapting traditional banking services to the needs of our segment and offering the personalized service that characterizes all of the other Grupo Famsa business units.

The effective execution of our ambitious roll-out plan has accelerated the incorporation of thousands of Mexican families into the banking system even as it offers more efficient financing options for Grupo Famsa and reinforces Famsa México’s comprehensive value offer.