1 Profile and
Context

 

1.1 Company Profile

(GRI 2-1, 2-2, 2-6, FS6)

Purpose and Values

We are a regional financial group with 28 years in the financial market that provides quality products and services, with a permanent commitment to people, that materializes in the purpose of «Facilitate solutions that transform lives». We promote sustainable development through inclusive, responsible, transparent economic growth and management aligned with the criteria of Environment, Society, and Governance (ESG).

The Group’s performance is based on principles and values, always betting on ethical, integral, and excellent management that supports our organizational culture, which provides confidence to our customers and other stakeholders.

Mission

Provide the most innovative financial products and services with high-quality standards and the best technology, provided by a qualified human resource; generating security and satisfaction in those who have given us their trust, always committed to being a socially responsible company.

Vision

Ficohsa will be recognized as a solid and reliable group committed to the development of the countries where we are present, where our clients will find effective, agile, and innovative financial solutions.

Ficohsa Values

Corporate Structure

FICOHSA FINANCIAL GROUP is a limited company with 100% Honduran capital. The registered office is in Panama City (Panama) and the Holding Company is in Tegucigalpa (Honduras). We have operations in both countries, as well as in Guatemala, Nicaragua, and the United States. We operate under an organizational structure led by Corporate Governance that promotes the efficiency and specialization of teams by service and country.

1.2 Context of the Sector

Contexto Económico de la Región

During 2022 the world economy faced major challenges, one of which was a generalized slowdown and more pronounced than expected, with the highest inflation recorded in several decades. The Russian invasion of Ukraine and the persistence of the COVID-19 pandemic had a significant impact on prospects. World growth is forecast to decelerate from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.

According to the Economic Commission for Latin America and the Caribbean (ECLAC), it estimated that in 2022 the economies of Central America and the Dominican Republic (CADR) had a weighted growth of 4.5%, slightly lower than the 4.9% projected at the beginning of the year. According to these estimates, Honduras grew 3.5%, Guatemala 3.7%, Nicaragua 3.5%, and Panama 7.4% respectively.

Progress in Sustainable Development

According to the report presented by the United Nations at the close of 2022, with the pandemic of COVID-19 in its third year and the war in Ukraine increased the food, energy, humanitarian, and refugee crisis, all this in the context of a climate emergency. This undoubtedly becomes a threat to the fulfillment of the 2030 Agenda for Sustainable Development.

The health and safety crises have led to a setback in the progress of the SDGs. Performance on SDG 1 (End poverty) and SDG 8 (Decent work and economic growth) remains below pre-pandemic levels in many low-income countries (SCIs) and low-middle-income countries (LMICs).

In June 2022, the Network of Solutions for Sustainable Development in partnership with the University of Cambridge published the Sustainable Development Report 2021, a document that year after year through an index of positions, publicizes the most significant advances that the regions and countries of the world have made to the Sustainable Development Goals (SDGs).

Despite the unfavorable economic and social context that exists at the regional and global level, LatAm maintains progress of sustained contribution, only below the economies of the European countries and members of the OECD (Organization for Economic Cooperation and Development). As for the countries in which Ficohsa Financial Group has operations, Nicaragua is the country with the best ranking, ranking 92 out of 163 and with a compliance score of 67.1. Then the position and score for the other countries:

Panama:                    Honduras:                Guatemala:
105 (64.0)                  112 (63.1)                  117 (61.0)

Finally, according to Sustainable Development Report 2022, it has identi ed eight investment priorities, areas that need major social transformations to achieve the Sustainable Development Goals (SDGs).

Our Financial Services

Our products and services offer innovative financial solutions of the highest quality, according to the needs of both people and micro, small, medium, and large companies to achieve the loyalty and trust of our clients in the countries where we operate.

Financial
Services

Personal Banking
Private Banking
Mortgage Banking
Corporate and Business
Banking Entrepreneur
Banking Ficohsa Express
Mujeres Adelante
Tengo/Cajas Ficohsa
Trust

Ficohsa
Insurance

Individual Insurance
Auto Insurance
Damage Insurance

Ficohsa Pensions
and Severances

Pension Fund
Business Fund
Guaranteed Loan

Ficohsa
Brokerage

Purchase of
Securities Values

Business Detail

Segment served
Sector/Activity
Products and services we offer
Countries we serve
Personal Banking
We are known for being an innovative bank, able to offer services according to the needs of individuals, through channels increasingly accessible.
We serve:
• Banking + (= USD$2.5M)
• Customer Remittance
• Client Payroll
• Mass Customer
• Natural persons
• Employees of private or public &nbsp&nbsp&nbspenterprises
• Accounts and deposits
• Remittances
• Savings accounts
• Checking accounts
• Credit and debit cards
• Loans
• Insurance banking
• Digital services (Mobile Banking, &nbsp&nbsp&nbspInterbanca, ESRM, FICOTICKET, Ficohsa &nbsp&nbsp&nbspApp)
• Term deposit certificates
Honduras, Guatemala, Nicaragua and Panamá
Private Banking
Specially designed to offer integral financial solutions to our customers. To be part of this segment, you must have liabilities at Ficohsa Bank of USD$5,000 - USD$75,000 or its equivalent in lempiras and excellent credit behavior.
• Natural persons
• Savings accounts
• Deposit certificates
• Insurance
• Credit and debit cards
• Assigned financial adviser
• Checking accounts
• Loans
• Digital services
Honduras, Guatemala, Nicaragua and Panamá
Mortgage Banking
We provide the best housing financing options and facilitate access to decent housing for the population in the region.
We serve:
• Natural persons
• Legal entities
• Natural persons
• Legal entities
• Institutional clients
• Housing Loans
• Contingent assets
Honduras, Nicaragua and Panamá
Corporate and
Business Banking
We are focused on providing financial support and advice to companies with sales ≥ $2.2 M, offering products and services developed specifically for this segment.
We serve:
• Large Corporate
• Corporate
• Business
• Institutional
• Legal entities
• Institutional clients
• Treasury (Savings and Checking &nbsp&nbsp&nbspaccounts, Trusts, Investments, Cash &nbsp&nbsp&nbspManagement)
• Credit Solutions (Corporate and Business &nbsp&nbsp&nbspCredit, Factoring, Financial Leasing, Bank &nbsp&nbsp&nbspGuarantees)
• Payment Solutions (Suppliers and/or Third &nbsp&nbsp&nbspParties, Credit Cards, Checks Confirmed, &nbsp&nbsp&nbspServices, Taxes)
• Collection Solutions (FicoPOS, Securities &nbsp&nbsp&nbspCollection, Corporate Tellers, Collections, &nbsp&nbsp&nbspEfective Payroll)
• International Services (Foreign Exchange &nbsp&nbsp&nbspBuying and Selling, International Transfers, &nbsp&nbsp&nbspSending SWIFT Statements, Factoring &nbsp&nbsp&nbspInternational/Local, Foreign &nbsp&nbsp&nbspTrade)
• Integration Solutions (Host to Host, Swift &nbsp&nbsp&nbspto Host)
• Digital Services
Honduras, Guatemala, Nicaragua and Panamá
Entrepreneur Banking
We have a wide portfolio of financial products and services for companies with annual sales of up to USD$2.04M
• Small and Medium-sized Enterprises &nbsp&nbsp&nbsp(SMEs))
• Individual
• Legal entities
• Savings and Checking Accounts
• Savings Account Ficohsa Small &nbsp&nbsp&nbspEntrepreneur
• Credit Card Entrepreneur
• Credit Lines
• Letters of Credit
• Loans for Fixed Investments, Machinery, &nbsp&nbsp&nbspVehicle Fleets
• Securities Collection
• Payroll Payment/Suppliers
• Tax Payment
• International Transfers
• Buying and Selling of Foreign Exchange
• Collections
• Ficocheque Confirmed
• Programmed Savings
• Ficointegra Software
• Automatic Disbursement under credit Line &nbsp&nbsp&nbspthrough Interbanca
• Medical Assistance &nbsp&nbsp&nbspEntrepreneur/Multiassistance Entrepreneur
• Ficomall/Catracha Store
Honduras and Nicaragua
Mujeres Adelante
In 2022, we launched a value proposition aimed at the economic and personal improvement and welfare of women.
We serve:
• Small and Medium-sized Enterprises &nbsp&nbsp&nbsp(SMEs)
• Large Businesses
• Independent Professionals
• Executives
• Natural persons
• Legal entities
• Savings Account Disfruta+
• Consumer loan/ Consolidation of debts
• Ficoauto
• Mortgage loan
• Entrepreneur banking
• Acquisitions services
• Pension fund
• Insurance
• Non-financial services (recognition, &nbsp&nbsp&nbspeducation, access &nbsp&nbsp&nbspto information, and &nbsp&nbsp&nbspnetworking spaces)
Honduras, Guatemala
Ficohsa Insurance
In 2022 we celebrated 65 years of experience in the insurance sector, providing the best solutions and supporting both the personal and material well-being of people who trust us.
We serve:

• Natural clients
• Micro, Small and Medium-sized &nbsp&nbsp&nbspEnterprises (MSMEs)
• Large Businesses

• Natural persons
• Legal entities
• Institutional clients
PEOPLE INSURANCE
• Medical Expenses Insurance
• Life Insurance
• Individual Insurance
• Personal Accident Insurance (individual or &nbsp&nbsp&nbspcollective)
AUTO INSURANCE
• Individual
• Collective
• Civil Liability
• Bicycle Insurance
DAMAGE INSURANCE
• All fire and/or lightning risk Civil Liability
• Maritime Hull
• Aviation
• Pet Insurance
Honduras, Guatemala
Ficohsa Brokerage House
A member of FFG, it has been active in the Honduran stock market since 1993.
We serve:

• Large Businesses
• Legal Clients

• Legal Entities
• Institutional Clients
• Advise and intermediation in the purchase &nbsp&nbsp&nbspof securities (primary and secondary &nbsp&nbsp&nbspmarkets)
• Subscription of Emissions
• Design, structuring and Registration of &nbsp&nbsp&nbspEmissions
Honduras
Ficohsa Pensions
and Severances
We started operations in 2015 with the purpose of promoting a culture of savings for retirement that helps ensure a better quality of life.
We serve:

• Natural clients
• Legal Clients

• Natural persons
• Legal entities
• Institutional Clients
• Individual Pension Fund
• Business Pension Fund
• Integral Protection Plan
• Business Layoff
• Loans with Guarantee
• Credit Card Futura
Honduras

Strategic Response to Banking Trends

Banking Trend
Response from Ficohsa Financial Group
Digitalization of processes and remote attention
Digital transformation through technology implementation is our way of making a di erence in the financial sector, providing the best solutions for our customers.
Interbanca: It is a safe and e ective online banking system where you can make transactions and queries in your account, 24/7, completely free. During 2022 our clients made more than 50 million queries and 10 million monetary transactions through this channel. We had annual growth in transactions greater than 15%.
Mobile App: It is a mobile banking system available for both iOS and Android where users can perform the same functions as in Interbanca regardless of where they are. We currently have more than 100,000 users.
ESRM: It is a virtual personal banking assistant, which allows our clients to obtain personal banking information directly.
Today it even allows you to collect remittances directly. During 2022 our clients made more than 35 million queries and more than 3.5 million monetary transactions.
Digital means of payment
We have developed specific solutions that facilitate transactions and payments for our customers such as the TENGO e-wallet, an app that is also designed to accelerate the digitization of small businesses and encourage their financial inclusion. In 2022 it expanded its physical network of correspondent agents at the national level growing +25% in coverage.
Cybersecurity
With the creation of new digital channels and the growing rise of crimes related to the theft of sensitive information and fraud, we are constantly updating our internal security levels, always aligned with international best practices.
We constantly train both our sta  and our clients, fostering a culture of Information Security.
Customization based on Client data
Aligned to our security management system, we make use of the information following our values and reciprocity before the trust that our customers give us. We have di erent mechanisms that allow us to avoid abusive commercial practices or invasive and unnecessary communication.
The use of this information allows us, mainly, to detect specific needs and develop attractive products that provide added value for the customer.
Diversification of the commercial portfolio
We have a wide portfolio of clients who, in turn, represent various economic sectors. Aware of this, we have teams of specialized employees by sector, whom we develop and keep in constant training to make solid assessments that allow us to reduce risks when granting credits and financing.
Credit assessment with environmental and social criteria
Through our Environmental and Social Risk Analysis System (ESRAS), we evaluate the credit we grant considering the environmental and social performance of our commercial clients. At the same time, we encourage and support their training for the adoption of sustainable best practices.
Financial inclusion
We continue to advance financial inclusion for specific sectors in the region, such as Entrepreneur Banking and Caja Ficohsa during 2022 the Mujeres Adelane program was launched, which promotes the economic growth of women. This initiative is part of the strategy of equality and inclusion becoming the gateway to the financial system in a reliable and transparent way for many professional women, entrepreneurs, and heads of household. Initiatives were also implemented for the young people banking from vulnerable areas in Honduras.