social responsibility report following a great trajectory...azcarraga main lines of action...

SOCIALRESPONSIBILITY REPORT

Following a great trajectory

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04 05

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32 34 37

07MESSAGE FROMTHE PRESIDENT

ABOUT THIS REPORT

CELEBRATING THE LIFE OFMR. FEDERICO HUMBERTAZCARRAGA

MAIN LINES OF ACTIONGovernance 10Our People 14Relationship with Customers 18Fair Operating Practices 19Environment 20Community Development 24

COMMUNICATIONS ON PROGRESS, UNITED NATIONS GLOBAL COMPACT

GLOBAL REPORTING INITIATIVE CONTENTS INDEX

EXTERNAL CERTIFICATIONLETTER

PROFILE OF THE ORGANIZATION

3Banco GeneralSocial Responsibility Report 2017

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The success achieved by Banco General over the years has been the product of four fundamental factors: the daily practice of a corporate culture based on values, the commitment to serve customers with excellence, a strict financial discipline, and our strategic long-term vision.

Within this vision, social responsibility plays a fundamental role, since doing business responsibly, always thinking of how to carry it out and how it will impact our stakeholders, has allowed us to lead the organization to success, creating value for society and contributing to the sustainable development of our country.

These pillars, that were the vision and the way of doing business of Banco General’s President, Mr. Federico Humbert Azcárraga, for more than 42 years, inspired all of us working under his leadership to follow his example and consolidate the culture that today is part of our daily living within the organization.

Before social responsibility or Sustainable Development Goals (SDGs) were even mentioned, Mr. Humbert promoted the well-being of his collaborators, as well as fair labor practices; he spoke about the responsibility we have in promoting values through advertising and communication; about the responsibility we have for knowing the customer and addressing their requests promptly; and of course, he believed in the great responsibility we have with our community, especially with the more excluded and vulnerable within our society. Thanks to his leadership, Banco General was the first Panamanian company to sign the

Message from the President G4-1 United Nations Global Compact in 2001 and today, as always, remains committed to its 10 principles that are the guide in continuing to work on social responsibility.

As is known to our customers and the community, Mr. Federico Humbert rested in the peace of the Lord on November 2, 2017. But the culture he founded will continue to grow in order for our organization to be part of the integral development of our country through social responsibility processes, programs and projects. Keeping his values alive is our commitment.

Raúl Alemán Z.President

…Mr. Humbert promoted the well-being of his collaborators and fair labor practices; he spoke about the responsibility we have in promoting values in advertising and communication; about the responsibility we have for knowing the customer and addressing their requests promptly; and of course, he believed in the great responsibility we have with our community, especially with the more excluded and vulnerable within our society.


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About this Report G4-28-29, 30, 31

This Social Responsibility Report contains information on the Social Responsibility processes and programs of Banco General and its subsidiaries, the achievements reached in 2017 and the proposed goals for the coming years. The content and structure of this report is based on social responsibility lines of action defined by our organization.

Additionally, we include the donations report and the audited financial statements for the “Your Good Neighbors Foundation” since Banco General channels most of its social contributions to the community through its Foundation.

To complete this report, we based it on the ten principles of the United Nations Global Compact of which we are signatories, the fundamental matters of ISO Standard 26000 and the Global Reporting Initiative (GRI).

Scope of the Report

This report covers the programs and advances from January 1st through December 2017 and is prepared annually; the last Social Responsibility Report for Banco General S.A. and its Subsidiaries was published in 2016.

Since 97% of the bank’s operations are executed in Panama, the 2017 Social Responsibility Report reflects the initiatives and advances regarding social responsibility of the offices in Panama and only the more relevant data is submitted regarding other countries where the bank operates.

It is worth mentioning that this report includes certain information on providers, limited to matters relevant to our stakeholders; additional information not necessarily analyzed or verified at all by Banco General possibly exists.

This report must be reviewed in conjunction with our Annual Report, our Ethics and Conduct Code and our Corporate Governance Manual, available at www.bgeneral.com.

For questions or suggestions, you may contact Social Responsibility Management ([email protected])

We based it on the ten principles of the United Nations Global Compact.

INFORME DE

RESPONSABILIDAD SOCIAL

Siguiendo una gran trayecto

ria


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Celebrating the life ofMr. Federico Humbert Azcárraga Through his leadership, integrity, humility and human qualities, he guided this great organization for more than 40 years. We thank him for his example and teachings; for being an exemplary citizen and contributing so much to our country.

“Success is not measured by money earned or possessed, nor by titles or power displayed. Success

is measured by the quality person we become.”

“Life is beautiful if we really look for the beauty of life.”

“The word pledged is sacred.Trust is the key word.”


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“Life is not a popularity contest. Principles are not negotiable, even if they place you at a

not so high level of popularity.”

“Dreams are illusions that incite imagination and delay aging. Live the present and its realities but embrace the illusions of dreams with love

and enthusiasm.”


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Profile of the Organization G4-3

BANCO GENERAL, S.A. AND SUBSIDIARIES

Our products and services G4-4

Personal Banking: Checking Accounts, Savings Accounts, Time Deposits, Credit Cards, Mortgage Loans, Personal Loans, Automobile Loans, Pledge Loans, Leasing, Online Personal Banking, ATMs, Insurance, Mobile Banking, BG Gifts and other services.

Corporate Banking: Checking Accounts, Savings Accounts, Time Deposits, Credit Cards, Lines of Credit, Provisional Loans, Commercial Loans, Leasing, Factoring, Letters of Credit, Issuance of Bonds and Share, Overdraft, Payroll, Affiliations to Businesses, Trusts, International Transfer, other services.

Asset Banking: Investment Accounts, Securities Brokerage, Custody Accounts, Management and Investment, other services.

Pension and Severance Funds: Private Retirement Funds, Futurín Savings Club, Multifunds, Severance Funds, Contributory Plan.

New products and services in 2017G4-12, 23

• We implemented BG “MoviPago” (Mobile Payments), a portable terminal that allows that a smart phone or tablet becomes a point of sale (POS) to accept payments with Visa, Mastercard and Clave cards.

• We installed or replaced 115 ATMs to continue offering excellent service to our customers.

• We opened three new branches in Panama: Paseo Arraiján, Santa María and Villa Zaita.


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Legal Form G4-7Banco General is a private bank with Panamanian capital. Its subsidiaries offer related services that include insurance and retirement funds, among others. The company holding 100% of the shares of Banco General and subsidiaries, S.A. is Grupo Financiero BG, listed in the Panama Stock Exchange. Grupo Financiero BG at the same time is held by Empresa General de Inversiones (61%) and 490 registered shareholders (39%). Empresa General de Inversiones is also listed in the Panama Stock Exchange.

Markets Served G4-8

Geographically: Panama, Costa Rica, Mexico, Central America, Colombia and Peru.

Sectors: Consumer and commercial markets (all sectors subject to credit).

Relevant Undertaking G4-9

Structure of the OrganizationBanco General, S.A.

Subsidiaries: • BG Valores• General de Seguros, S.A.• Overseas Capital Markets, Inc. and subsidiaries• Banco General (Costa Rica), S.A.• Finanzas Generales, S.A. and subsidiaries• BG Investment Co., Inc. and subsidiaries• ProFuturo, Administradora de Fondos de Pensiones y Cesantía, S.A.

Parent Company G4-5Panama/represents 97% of the operation

Regional OfficesBanco General Costa Rica, 11 branches

Representative Offices G4-6Mexico, Guatemala, El Salvador, Colombia and Peru

Principles or commitments to which Banco General is attached G4-15

• Signatory of the United Nations Global Compact• Signatory of the Ethical Business Compact of Panama• Member of the Financial Initiative of the United Nation’s

Environmental Program

Associations and Unions to which Banco General, S.A. belongs G4-15

• Bankers Association of Panama• Panamanian Real Estate Brokers and Promotors Association• Panamanian Construction Chamber• National Housing Developers Council

Economic Performance EC-1

Indicator 2016 2017Total number of collaborators 4,495 4,649

Total number of customers 878,397 892,590

Gross Profit US$365,388,055 US$429,746,527

Total Assets US$16,415,823,501 US$17,571,921,948

Equity US$1,832,185,842 US$2,045,842,810

Total Capitalization divided by terms of debt and equity 11.16% 11.64%

Number of products and services 43 43

Indicator 2016 Direct economic value created US$922,823,501 US$1,059,347,393

Income less provisions plus net commissions US$922,823,501 US$1,059,347,393

Economic value distributed US$773,146,215 US$853,131,203

Operating Costs US$92,763,830 US$109,165,541

Employee Salaries and Benefits US$157,090,553 US$165,260,698

Payments to capital providers US$464,789,592 US$513,260,698

Payments to governments (by

country) -0 -0

Panama US$53,242,227 US$58,821,011

Costa Rica US$218,778 US$650,259

Investment in the community US$5,041,235 US$5,558,770

Retained economic value US$149,677,286 US$206,216,190

Dividends paid US$210,963,500 US$220,000,074

Deferred Taxes (US$4,747,269) (US$3,530,263)

Net Income US$365,388,055 US$429,746,527

For additional and complete financial information please refer to the Financial Report for Empresa General de Inversiones, available at www.bgeneral.com

2017


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Governance

Fair practicesEnvironmentCommunity Development

Our People Customer Relations

LINES OF ACTION

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GovernanceG4-24, G4-25, G4-26, G4-27.G4-34,G4-56

At Banco General social responsibility is part of our corporate DNA and is so stated publicly in our Vision, Mission Values and Code of Ethics and Conduct. Accountability, transparency, ethical behavior, respect for stakeholders, legality and human rights, is integral to these documents.

The way decisions are formally made within the organization is detailed in our Corporate Governance Manual, public document published at www.bgeneral.com.

Relationships with stakeholders G-24-27The Bank defined its stakeholders after consultation in the year 2008 and has worked during the last years to open channels of communication with them.

Stakeholders Communication Method Frequency Description

Stakeholders

General Meeting of Shareholders AnuallyThe shareholders meeting of Empresa General de Inversiones (holder of 60% of Grupo Financiero BG) took place on March 16, 2017 in the afternoon and the Shareholders Meeting of Grupo Financiero BG (holder of 100% of Banco General, S.A.) took place on March 16 in the afternoon.

Office of Shareholder Services Permanent Banco General has a person designated exclusively to handle relationships with shareholders and to address their concerns.

Communication from the President Quarterly Shareholders receive a quarterly communication from the President in which he makes himself available to receive concerns.

CollaboratorsOrganizational atmosphere survey Permanent The last survey (anonymous) took place in 2014 and during 2017 the plans

based on the results of the survey were executed.

Secure line Permanent Telephone line available for all collaborators whereby violation complaints of the Ethics and Conduct Code can be made anonymously.

Clients

Suggestion boxes in all branches and website

Permanent Suggestions deposited in the boxes or that are sent branches and website through the website are received and evaluated by Customer Service.

Social networks Permanent Consultations and complaints received through social networks are channeled through Customer Service (call center).

Personalized surveys outsidethe branches

Quarterly Carried out by an external provider and analyzed by the branches Customer Service.

Customer service Permanent Call center available during extended hours.

Customer service via chat Permanent Customers may “chat” with Customer Service managers at www.bgeneral.com

Providers Purchasing Management Permanent Purchasing is available to receive calls and complaints regarding providers.

CommunityVisits to projects Permanent The Good Neighbors Foundation team and a liaison officer visit many ONG

projects throughout the year to have firsthand knowledge of social investment.

Personal appointments Permanent The Good Neighbor Foundation team meets weekly with many ONGs to address requests and concerns.

Regulatory Entities Presence/regulatory PermanentAs indicated in our Ethics Code, we maintain open communication with regulatory entities through adequate channels. Many of these visit the bank and are met by different areas.


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Social Responsibility Management

Guided by a materiality study completed in 2013, ISO 26000, the Global Compact and the Objectives of Sustainable Development, we continue making progress on social responsibility.

The Social Responsibilty and Business Ethics Committee, consisting of key Bank personnel, gives the general guidelines for development of plans already defined.

In 2017, we continue with the objectives of the Strategic Plan developed in 2013, following up on programs and processes already established. Additionally, we started a planning process in the area of Strategic Planning and started with a series of interviews with key individuals within the organization. In 2018 we will finalize this process with the main objective of aligning social responsibility objectives with the business objectives.

The 2017 plan has ten strategic objectives, all relating to material issues as follows:

Reinforce the ethics and anticorruption management systems to preserve an unblemished corporate image.

Innovate with banking products and services that promote social and environmental welfare.

Report sustainable management more transparently and according to industry standards.

Optimize the use of natural resources available to achieve economic savings and reduce our environmental impact.

Encourage responsible use of credit among our collaborators, customers and the community.

Reinforce sustainability standards in our supply chain.

Positively impact the community through labor and financial inclusion of vulnerable groups and people with disabilities.

Continue reinforcing the professional and personal development of our human capital.

Support social and environmental development in our country through sustainable and measurable actions.

NECESSARY

URGENTEMERGING

GENERALIZED

Material RiskSe

ctor ma

turity

HIGH

100%

75%

50%

50% 75% 100%

25%

25%

0%

0%

LOW

LOW HIGH

Operations

Customer Relations Management

Waste Management

Attract and retain talent

Management of Water Resources Develop products/servicesSocial Responsibility Management

Relationships with stakeholders

Development of human capital

Impact on communities/inclusionFinancial

Environmental policiesHuman rights

Brand Management

Corruption /bribery /transparency

Risk managementEthics and integrity

Work practices

Corporate government

Financial matters

BiodiversityEmployee satisfaction

Climate changeEstándares con Proveedores

Safety and occupational health

MaterialsEnergy eco-efficiency

The establishment of mandatory training for collaborators regarding the Ethics and Conduct Code.

Improve energy management, better management and measuring of our consumption.

Greater sensitivity within the company towards responsible consumption, maintenance of paper recycling numbers and its reduction.

Implementation of an improved process of due diligence with our providers.

Among several accomplishments we can highlight:


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Corporate Governance G4-34In our Corporate Government Manual, available at www.bgeneral.com, all matters regarding management of this subject are detailed. It is a living document that is constantly modified depending on any changes made within the organization.

Compliance and safety managementSO-4 HR-2,7 y G4-14At Banco General we comply and act pursuant to the law and applicable rules, on a national and international level. Our Compliance and Corporate Safety area has the objective of guaranteeing that all bank operations, as well as its subsidiaries are in accordance with banking rules and regulations, especially Law 23 of April 27, 2015 “that adopts measures to prevent money laundering, the financing of terrorism and the financing of the proliferation of weapons of mass destruction”, as well as Agreement by the Superintendence of Banks of Panama No. 10-2015 of July 27, 2015 on “Prevention of the improper use of banking and fiduciary services”. The structure of the Vice-presidency of Corporate Compliance and Safety is available at www.bgeneral.com.

Risk Management G4-14

Banco General has an integral management system based on a set of objectives, policies, procedures, structures and limits to the integral management of risks; supported in the appropriate documentation and registries generated in the process; personnel with the necessary qualifications and experience to comply with the roles of responsibility; necessary resources to carry out the

work; and the informational tools and technology in accordance with the sophistication of the corresponding methodologies and activities. The bank has an Integral Risk Management Manual that details all these procedures and the structure of the Risk Vice-presidency is available at www.bgeneral.com, Social Responsibility section.

The principles established for integral risk management of the banking group regarding credit risk, market risk, liquidity risk and operational risk are available under Note 30 of the 2017 Consolidated Financial Statements of Banco General, S.A. published on our website www.bgeneral.com, in the Corporate Information section. The principles established for risk management of money laundering, financing of terrorism and financing of the proliferation of weapons of mass destruction are detailed in the previous section (Compliance and Safety Management) of this report. Likewise, the principles established for management of environmental and social risk are found in this report, Environment section.

Our Corporate Compliance and Safety area has the objective to guarantee that all bank and subsidiary operations are in accordance with the banking rules and regulations.


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Items Numbers Comments -CN Detail

Areas with Business Continuity 31

Includes the DRP of IT, 5 new plans: Fixed Assets and Payments, Portfolio Management, Supply Chain, Investment and Trust Banking and General de Seguros (excludes the Rule, the Mounting procedure and the PeopleSoft procedure, Emergency and Evacuation Plan and Crisis Management Plan.

Includes the Business Continuity plans of Banco General + Technology + Subsidiaries

Number of processes and sub-processes 91

Includes BIA: - priority A=18 “very high” + 24 sub-processes = (42) + - priority B= 6 “high” + 3 sub-processes = (9) + - priority C= 6 “medium” + 11 sub=processes = (17) + - S/B = 10 + 2 = 11 sub-processes = (17) + - Subsidiaries = 11Counted as in BIA 6 of TI, rule 1

The processes and sub-processes documented, included in the plans of each area + Emergency and Evacuation Procedure Mounting Procedure, Procedure for Crisis Management and the Rule for role management.

% of processes and sub-processes

documented74%

Total: - Identified in BIA = 61 - Sub-processes = 39 - S/B= 10 - S/B sub-processes = 2 - Subsidiaries = 7 - Sub-processes subsidiaries = 4=123Note: the base changed in -3 when restructuring theBIA procedures from 64 to 61:- Monitor and report priority B incidents since it is a sub-process of priority A- Offer attention consultation and requests through Peoplesoft of priority D since it was duplicated in priority C-Transfer among accounts are eliminated from priority B to only count BG processes and S/B is placed

Percentage obtained of the 91 procedures documented/ 123 base procedures, including the Crisis and Safety Mgt. Procedure

Number of processes and sub-processes

documented and tested69

From 91 processes and subprocess documented, 69 have been tested

Represents the processes and sub-processes tested

% of processes documented and tested 56% 69 total identified at BIA=123

The percentage of processes and sub-processes increased with respect to 2017 since the base that represents the universe of processes increased from 119 to 123 while contemplating the same process duplicated in different areas

Number of face-to-face training sessions on contingency plans

10 Includes 10 training sessions given at CN modulesPart of the amounts reported under the Our People Section

Collaborators numbers trained face-to-face on

CN matters 110 1, 2 and 3 (does not include IT, Auditing or CN personnel) Part of these were reported in the Our People Sections

Colaboradores capacitados por

E-learning9291

The workshops on Operational Prevention and Safety Rules and Operational Risks given by E-learning to the entire organization

The total includes active collaborators and on leave during 2017

Business continuityDuring 2017, the most important challenge for the Business Continuity area was the design of strategies for the maintenance of contingency in the critical processes due to the moving of the Operational Center, among them: • Define, prepare and test new particular sites for the

5 most critical processes of the organization, which involved working on 12 areas.

• Develop and implement the new alternate contingency site for the organization, located at Plaza Carolina.

Implementation of the CN Program at Subsidiaries finalized, including General de Seguros.

Likewise, the processes were further developed, training collaborators and carrying out tests to strengthen the organization’s preparedness when facing incidents.

Following, there is a detail of the numbers corresponding to the items of annual Business Continuity Management.


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Our peopleG4-10, G4-11, LA1, LA2, LA9, LA10, LA11, LA13, EC5

As expressed in our moral commitment, “respect, fair and equal treatment are the pillars of our labor relations”. We share some of the numbers of our labor force.

Composition of the labor force

Indicator 2015 2016 Total collaborators 4,326 4,495 4,711

Female 69% 69% 68%

Male 31% 31% 32%

Collaborators by type by contract

Permanent 4,273 4,457 4,649

Temporary 53 38 62

Collaborators by region

PANAMA 4,144 4,301 4,515

Women 70% 69% 68%

Men 30% 31% 32%

COSTA RICA 157 168 170

Women 59% 61% 61%

Men 41% 39% 39%

REGION (Mexico, Guatemala, El Salvador, Colombia y Peru) 25 26 26

Women 52% 50% 54%

Men 48% 50% 46%

Collaborators by position*

MANAGEMENT 101 102 101

Women 48% 49% 50%

Men 52% 51% 50%

GERENCIALES 323 337 359

Women 75% 74% 74%

Men 25% 26% 26%

MIDDLE MANAGEMENT 767 846 890

Women 69% 66% 65%

Men 31% 34% 35%

SPECIALISTS 510 543 611

Women 72% 73% 71%

Men 28% 27% 29%

ADMINISTRATIVE 2,625 2,667 2,750

Women 69% 69% 68%

Men 31% 31% 32%

2017

Indicator 2015 2016

Turnover index 8.65% 8.44% 7.59%

By genderWomen 7.45% 8.28% 6.48%

Men 12.04% 8.77% 9.97%

By age

age 18-30 15.61% 16.20% 12.82%

age 30-50 5.98% 4.63% 4.81%

age 51 or older 3.45% 4.35% 4.82%

By region

Panama 8.63% 8.13% 7.08%

Costa Rica 13.31% 15.57% 20.49%

Region 20.48% 15.69% 9.12%

Indicator 2015 2016

Total new hires* 576 591 591

By genderWomen 66% 63% 55%

Men 34% 37% 45%

By age

age 18-30 445 467 464

age 30-50 128 121 123

age 51 or older 3 3 4

By region

Panama 535 549 552

Costa Rica 37 37 37

Region 4 5 2

*Permanent employees of Banco General, S.A. and its subsidiaries in Panama, Costa Rica and Region.All persons hired during the year are considered.

Hiring and turnover indicators We seek to maintain a diversified workforce and a healthy turnover index.

2017

2017

SUSTAINABLEDEVELOPMENTGOALS

HEALTH AND WELL-BEING

QUALITYEDUCATION

GENDEREQUALITY

DECENT WORKAND ECONOMIC GROWTH


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Compensation and gender equality indicatorsWe have policies and procedures to ensure fair compensation of our personnel.

Health, well-being and quality of life

The health and well-being of our collaborators is fundamental for their quality of life, motivation and performance; therefore, we work hard on prevention and health education for all our collaborators in the different departments and branches at a national level.

From May to October, individual evaluations of three thousand one hundred one (3,101) collaborators were performed. This year the program consisted of nutritional evaluations considering the following: blood pressure taking, weight, size, body mass index, % of fat, % of water and waistline circumference.

Nutritional status according to the BMI

Indicator 2015 2016

Minimum salary ration in Panama

Minimum salary paid by Banco General and its subsidiaries**

$550 $625 $625

Minimum salary paid in Panama*** $548 $595 $595

% paid above the legal minimum salary 0.4% 5.0% 5.0%

Average salary ratio between genders

Average monthly salary for men - Executive and managerial positions

$6,811 $6,925 $6,815

Average monthly salary for women - Executive and managerial positions

$4,888 $5,000 $5,102

Monthly variation 39.34% 38.50% 33.59%

Average salary ratio between genders

Average monthly salary for men $2,032 $2,062 $2,028

Average monthly salary for women $1,843 $1,880 $1,884


Average salary ration between genders

Average monthly salary for men – administrative positions

$915 $936 $950

Average monthly salary for women– administrative positions

$873 $892 $910


2017

*We consider Panama the sole location of significance since 96% of our labor force is located there.**Applies to all permanent personnel of Banco General Panama, BG Valores, General de Seguros and Vale General. ***The Panamanian minimum salary is calculated based on an hourly rate; the monthly amount indicated assumes a working week of 46 hours (information of Executive Decree No. 293 of December 22, 2015, applies effective January 1, 2016).

2%

25%

41%

28%

6%

87%

7%

72%

59%

28%

45%Underweight

Obesity

Normal

Overweight

Over 88 cm

Less than 88 cm

Over 102 cm

Less than 102 cm

Low High Normal

The BMI is the relationship between weight and height:• A person with a BMI less than 19 is underweight.• A person with a BMI between 20 – 24 has normal weight.• A persona with a BMI between 25-29 is overweight.• A person with a BMI of 30 or above is obese.

Waistline circumference in women

Blood pressure results

Waistline circumference of men

The ideal waist circumference for ladies is up to 88 cm and 102 cm for men. The values above the established values indicate that the person has a higher risk of cardiovascular diseases.

Blood pressure is the force of blood against the walls of the arteries, 120/80 mmHg is considered normal.

The ranges for classification in this evaluation were:

• Low (<100/60mm Hg)

• Normal (120/80mmHg)

• High (>130/90mmHg).


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Move for HealthFrom May to November, more than one hundred (100) collaborators trained three (3) times a week through diverse physical exercises (Zumba, toning and yoga), with the objective of strengthening their muscle mass, improve their cardiovascular system, develop athletic ability, burn fat and bodily maintenance.

Traditional sports leagues took place and new participants were added, whereby in addition to promoting physical health, time is spent with family and bank co-workers, sharing outside office hours.

Motivation and recognitionsThrough an annual party and individual gifts, we recognize the loyalty of our collaborators that have remained in the organization for more than 10 years.

Other Activities:We continue to educate our personnel on physical health, nutritional and emotional matters through publication of articles regarding health on networks as well as in our in-house magazine, other experiential activities were carried out for participation of the children of collaborators, oriented towards psychosocial health:

• Gastronomy for children• Confectionery for children• Art therapy for children• Art therapy – mandalas• Pediatric first aid and emergencies• Spinal health and Active Pause

Indicator 2015 2016

In-house league (softball, soccer, volleyball, basketball, bowling, pool)

Participants 1,061 921 948

Investment US$26,508 US$27,926 US$34,950

Interbank and external leagues

149 154 165


Children’s leaguesParticipants 100 100 100


Half Marathon Program

Participants 88 288 301


Indicator 2015 2016

INVESTMENT US$138,311.60 US$138,311.60 US$133,862.00

10 years 141 170 148

15 years 63 59 77

20 years 50 42 71

25 years 66 75 39

30 years 33 49 24

35 years 6 12 12

40 years 0 1 3

50 years 0

TOTAL 359 408 374

2017

2017

Performance evaluationWe assess the performance of our collaborators to give them fair feedback and help them grow professionally. The evaluation process starts at the end of the year and is extended through the beginning of the following year, in 2017 we finalized the process for the year 2016.

Indicator 2015 2016 2017Number of collaborators participating in the process 3,620 3,955 4,071

Number of collaborators evaluated 3,403 3,815 3,944

% of the population evaluated 94.06% 96.46% 96.88%

Percentage of collaborators participating in the process

Executive and management positions 9.50% 10.30% 9.99%

Middle management positions 18.40% 18.90% 19.93%

Specialists 11.50% 12.50% 13.54%

Administrative 60.50% 58.30% 56.54%

Men 30.80% 30.70% 30.88%

Women 69.20% 69.30% 69.12%

The evaluation for 2017 is taking place between January and March 2018; the results will be included in the next Social Responsibility Report.


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Food Subsidy ProgramIn 2017, we continued with the Food Subsidy Program, benefit granted to permanent employees in administrative positions and specialists working in Panama. This benefit has the purpose of covering a percentage of the basic food basket and consists of the delivery of vouchers totaling $100.00 per month, exchangeable for food, medicine and school supplies for several commercial establishments in the country.

Training and DevelopmentBanco General Corporate University (UCBG) is the branch that designs and executes the professional development plans of our collaborators, the fundamental basis in keeping us updated on the different issues, professional, as well as personal, that support our formation as people.

With 9 years of operation, UCBG has evolved with time, not only to address the needs of professional development through programs and workshops developed in modules with a wide range, but also introducing new methodologies and technologies that allow us to meet the increasing needs of its academic offerings.

For 2018, once moved to our new UCGB facilities at the Operational Center, we have cutting-edge audiovisual equipment, ergonomic furniture, two computer rooms equipped for technical

training, recess area to share and interact, spacious, comfortable and flexible rooms to adjust to the different types of activities, offering space to all collaborators for their professional development with the highest standards in physical facilities and amenities.

We continue to improve training, through the methodology “online learning”, for the comfort of the collaborators who can access learning from their workstation.

We also continue to strengthen academic offerings with new workshops and demanding quality from external providers, as well as establishing new alliances with the purpose of ensuring the offering of additional knowledge and training from our strategic external partners.Indicator 2015 2016 2017

Average collaborators benefiting 2,894 3,013 3,095

Annual investment $3,642,009 $3,776,251 $3,875,809 * Amounts corresponding to BG & Subsidiaries in Panama.

*Time measurements are in hours and minutes.

Indicator* 2015 2016

Total collaborators trained 4,692 4,920 5,111

Total man hours of training 245,088:36 202,911:42 213,173:32

Total average hours of training per collaborator 52:14 41:14 41:42

Average hours of training per collaborator

Executive and managerial positions 33:34 44:59 45:20

Middle management 46:05 35:09 34:06

Administrative and specialists 55:29 41:47 43:10

Men 63:04 40:59 49:32

Women 47:14 40:59 37:56

Total investment in-house training US$778,917.77 US$697,970.54 US$711,308.32

Total investment in external training US$523,851.80 US$632,395.81 US$542,276.13

Total investment in training US$1,302,769.57 US$1,330,366.35 US$1,253,584.45

2017


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Relationship with customers PR-5

Our customers are among our main stakeholders, with different expectations for the Bank. Among the most important are receiving prompt, efficient and cordial service, as well as accurate and clear information. The principles that govern our relationship with customers is detailed in our Ethics and Conduct Code.

Customer serviceQuality of service and customer satisfaction are two concepts that are intimately related. For this reason, we offer all the tools necessary for our collaborators to offer excellent service which is being constantly monitored for compliance.

During 2017, 18 integral studies were performed that allowed us to acquire knowledge of the level of satisfaction of our customers and the factors impacting that satisfaction through measurement of different attributes such as kindness, promptness, follow-up, level of knowledge and clarity of the information given by our collaborators to customers, among others. These studies were performed by external specialized providers.

Even though there are other indicators, during this occasion we share the one we deem is the most important in terms of illustrating the general experience of the quality of service customers perceive.

* General experience indicator of the survey performed by Dichter & Neira from January 1 to December 31, 2017. The range is 1 to 5, 1 being very unfavorable and 5 excellent.

The results obtained from the satisfaction surveys are reviewed and analyzed by the Customer Service Department and later shared with the different areas within customer service for development of continued improvement strategies and application of corrective measures. Likewise, the department oversees promoting a corporate service culture within the bank through several programs that include recognition of collaborators that give excellent service, promotion of new ideas to improve service, a continuous training program through UCBG, among others focusing on the strengthening of the service offered to our customers, allowing us to continue building lasting relationships.

Management of requests and claimsIn 2017, we received 322,302 cases categorized as requests and claims, representing an increase of 2% with respect to the previous year.

This increase could be due to several reasons, including the campaign launched to promote the change in the plastic material of several credit cards, and for customers to change to Token Digital as their method of authentication.

Some important indicators are:

• 97% of the claims and requests were processed within the agreed services offered.

• An average solution time of 3 business days.

• Solution of 97% of these cases was communicated to the customer the next business day after its processing.

As required by banking regulations, all the information regarding products and services, including rates, charges and current fees for products are published on our website www.bgeneral.com.

Indicator 2015 2016 2017General experience with Banco General 4.6 4.6 4.6

Cases sent to regulatory entitiesOf the total claims and requests received from customers in 2017, 24 claims and 5 administrative complaints were lodged with the Superintendence of Banks, and 21 complaints with ACODECO.

The fines paid to ACODECO totaled B/.11,450, corresponding to 7 complaints (including cases lodged in previous years).

Financial Education programIn 2017, we continue with our financial education program, to which more volunteers sign up each time. We do this on two fronts, one through partnership with the Banking Association of Panama, and on the other, with companies that are customers or providers of the Bank.

In 2017, we were not able to participate with Aserrio Highschool in Veraguas due to logistics, therefore, we reached less students than in 2016. In 2018 we will put forward our best efforts to continue reaching more students.

Indicator 2016 2017

Participating schools 5 4

Participating students 1,111 609

Participating volunteers 35 25

Indicator 2016 2017

Participating individuals 322 388

Participating organizations 13 9

Participating volunteers 12 11

SUSTAINABLEDEVELOPMENTGOALS

INDUSTRY, INNOVATION AND INFRASTRUCTURE


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Fair practicesEC-9, LA-14, HR-5, 6, 10 SO-0,10, 64-12

Matters relating to fair operating practices are present in responsible, ethical and fair behavior with other organizations such as suppliers, governmental agencies, competitors and unions.

SuppliersIn 2017, we continue working to reinforce the “Know your Provider” practice through which, with due diligence, is strengthening our relationships with them.

In practice, this policy entails requesting more detailed information from each provider to know their officers, activities carried out, commercial references, among others. In 2017, 278 new providers were created who went through this process.

We present the most important indicators regarding providers:

Indicator 2017

Number of providers 1495

Average payment time after processing invoices 15 días

Total disbursed to local providers US$159,840,643.98

Total disbursed to foreign providers US$23,870,347.26

Total disbursed in payments to providers US$183,710,991.24

Anticorruption policiesAll our anticorruption policies are detailed in our Ethics and Conduct Code. To further reinforce our culture based on values, we offer online training to all our collaborators on our Ethics and Conduct Code, with cases which could occur at the Bank. This dynamic training allows us to “refresh” certain concepts and emphasize current subjects. In 2017, 99.6% of our personnel received this training.

As good anticorruption policy practices, we continue offering the secure line option, an anonymous phone line to report offenses to the Code. In 2017, no offenses were reported on this line.

SUSTAINABLE DEVELOPMENT GOALS

DECENT WORK& ECONOMICGROWTH


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EnvironmentEN-1, 2,3,4,6,7,8,15,16,19,27,30

In 2017, we continue with our efforts to be responsible regarding our environment, reinforcing processes and implementing new ones.

We would like to highlight that in 2017 Banco General inaugurated a new operational center in the area of Ciudad Radial, in the outskirts of the City that was built and maintains the highest high standards of environmental sustainability, that includes the following in the exterior of the building:

• Rainwater retention system used to compensate the water of the open circuit of the cooling towers.

• Double glazed windows with coefficients appropriate for insulation from solar radiation.

• Reflective roof surface, resulting in 44% decrease in roof transmission losses. This results in 15% decrease in heat gain.

• Efficient orientation of the building: a climate study was performed to determine the orientation and efficient form of the building.

• The rectangular plan allows easy control of greater solar exposure of the east and west facades, taking advantage of indirect lighting of the north façade.

• The east and west facades receive direct light every day. While controlling the area of these facades, we can decrease the daily solar exposure the building receives daily.

• The north façade has the least solar exposure during the year, and mainly during the summer. This façade has a greater area since it receives natural indirect light ideal for internal lighting of the building.

• Frequency converters are supplied for the air conditioning pump system, fans in the cooling towers and for the fan motors of the fresh air units.

In the interior:• A lighting control system was used throughout the office

building and parking garage. It controls the use of lamps with motion and light intensity sensors. It is estimated that the annual energy savings in lighting is 46%.

• The elevators are equipped with regenerative units that will produce energy when the elevator is descending.

• The mechanical system “Variable Air Volume” was selected for greater energy efficiency of the air conditioning system.

• Units or the system “Energy Recovery Ventilation”, provide fresh air cooled towards the inside of the building.

SUSTAINABLE DEVELOPMENT GOALS

SUSTAINABLECITIES AND COMMUNITIES

RESPONSIBLEPRODUCTION &CONSUMPTION

CLIMATE ACTION


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Environmental and Social Risk Management System

The Environmental and Social Risk Management System (SGAS) of Banco General has grown, it has been strengthened, and is an important part of the bank’s daily business.

Since implementation in 2009, we have applied and gradually expanded our Environmental and Social Risk Management System (SGAS), since it is a matter directly

Cases evaluated at SGAS from January 1st to December 31, 2017

Important achievements of Environmental and Social Risk Management (SGAS) during 2017:

The environmental and social evaluation process for Residential Mortgages continued to be strengthened, elevating the performance

obtained in previous years.

During 2017, geographical information software was purchased that allows the Bank to validate if the coordinates of a construction project are located within the polygon that comprises the study of the flood zones prepared by the Bank and validate the risk.

In conjunction with a group of six local banks, Banco General, S.A., as founding member of the Sustainability Commission of the Banking Association of Panama (ABP), has made considerable

advances and contributions in the preparation of a Sustainability Protocol that will be voluntary and that will be implemented and communicated soon by the Banking Association of Panama.

High performance was maintained in the results of the evaluation process of the Environmental and Social Risk System in the areas comprising Commercial Banking.

related to our business. SGAS consists of a detailed analysis of environmental and social risk management within our credit process. At the time of evaluating the granting of a credit, not only is the financial status of the company analyzed, but the customer’s performance is also evaluated through management of potential environmental and social risks inherent to its scope. To know the process, visit www.bgeneral.com under the RSE section.

SE

CT

OR

S Amount approved

(USD thousands)

Percentage of loan amounts for the period

Number of loans

approved for the period

Average amounts for this period

(USD thousands)

Types of service or sub-sector

CO

NST

RU

CTI

ON (Panama)

1,275,68140.3% 70 18,224

Development of residential and commercial projects,

contractors(Region) 47,700

1.5% 2 23,850

IND

US

TR

Y

(Panama)100,375

3.2% 25 4,015Manufacturing of food

products, paper industry, manufacturing of cement

(Region)214,930 6.8% 21 10,234

Refineries, manufacture of plastic products, processing and bottling of water, food

processing

EN

ER

GY (Panama)

111,000 3.5% 2 55,500

Generation and Distribution of electricity(Region)

18,0000.6% 1 18,000

OT

HE

RS (Panama)

1,273,98440.2% 195 6,533 Financing institutions,

real estate investments, wholesale and retail of diverse products, restaurants, hotels

(Region)124,313

3.9% 36 3,453

TO

TA

L

3,165,984 100% 352


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Carbon Footprint CalculationSince 2013, we calculate our Carbon Footprint within the levels of Scope 1 and Scope 2, under the internationally recognized criteria of the GHG Protocol.

Emissions in tons of carbondioxide

2016 2017 VARIATION

CO2 tons consumed kWh

8589.78 10347.98 20.46%

CO2 tons consumed Generators Electric Diesel

40.07 93.97 134%

CO2 tons consumed Diesel fleet

60.08 63.11 5.04%

CO2 tons consumedGasoline fleet

231.97 263.1 13.41%

Total CO2 tons emitted 8921.9 10768.16 20.69%

Indicator 2016 2017

Total tons CO2 emitted 8921.9 10768.16

Total collaborators 4041 4544

Indicator 2016 2017

CO2 tons per collaborator 2.21 2.36

Direct Energy Consumption EN3, EN6

2016: 15,122,849 KWH

2017: 18,218,274 KWH

The year 2017 was energetically irregular for Banco General as well as Panama. In the case of Banco General, 1800 collaborators were moved to the Operational Center between April and June, resulting in several old locations consuming energy simultaneously with the Operational Center while the move was taking place and finalized, and until the old buildings were suitable for sale or delivery. Likewise, the Operational Center during the first few months was in the process of testing its air conditioning units to achieve balance, resulting in more energy consumption than normal.

In the case of Panama, the irregularity resulted from the national electrical system during the month of March, having companies that owned power plants turn them on during the periods of greater demand, duplicating the consumption of diesel for the generators in comparison to 2016.

Finally, the carbon dioxide ton index emitted per collaborator increased only in 6%, considering all the incidents that arouse in 2017, but it is probable that the index decreased in 2018 since moving of the Operational Center has been finalized.

It is worth highlighting that Banco General received the Rational Use and Energy Efficiency Award granted by the National Secretary of Energy, that for the second year in a row gives this recognition to entities in the private and public sectors, as well as schools. The Bank was worthy of this award due to its efforts in managing energy as efficiently as possible with the use of renewable energy, installation of efficient equipment, constant measuring of consumption, among others.

Cases evaluated by SGAS by risk profile

Category Number Amount (US$MM)

A 207 US$1,862

B 734 US$2,855

C 5,015 US$5,359

Total 5,956 US$10,076

4%12% 19%

28%

53%84%

Percentage in number of customers

Percentage of portfolio $

*Does not include ProFuturo, Vale General and regon.


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Fluorescent lightbulbs:Proper disposal of mercuryIn 2017 we collected and disposed of a total of 4,426 lamps, a significant amount of mercury that will not reach the landfills that could affect the health of people and the environment.

Indicator Total lamps and bulbs correctly disposed

2016 5,044

2017 4,426

At the Bank, we also collect other material that are not used as much, but that equally cause an impact. Plastic and aluminum is usually collected at the largest cafeterias and the cardboard corresponds to courier boxes. In all cases we increased and maintained the level of material collected.

Other materials

Indicator 2017

Plastic 947 Lbs

Aluminum 1,101 Lbs

Waste Management EN1In 2017, we continued with our recycling program to better manage our waste in conjunction with the recycling company ERC. Through continued service of the recycling provider, we achieved maximum results at the time of recycling materials, with better results.

PaperIn 2017, we collected paper at the Operational Center and delivered it to a recycling company for subsequent recycling. Even though we recycle a smaller percentage, we buy less, therefore reinforcing the most important, reducing consumption.

Indicator 2016 2017

Total purchased 178,411 Lbs 148,728 Lbs

Total recycled 47,327.20 Lbs 36,472 Lbs

% Recicled 29% 25%

Electronic MaterialBanco General must dispose of electronic material due to its deteriorated and out of date condition. In order for the material to not end up in landfills, the Bank carries out a special sale for its collaborators and the remainder is recycled. In 2017, 3,204 pounds of electronic scrap was disposed of or recycled, including monitors, CPUs, laptops, printers, telephones, among others.

Renewable energyThe use of solar panels in the Brisas del Golf branch has generated a total saving of 50.90 MWh since its implementation, which represents a saving of 29 tons of CO2.

Eco-efficienc EN7As previously reported, we have four LEED® certified branches: Clayton and City of Knowledge (LEED® Gold), Panama Pacifico (LEED® Silver) and Versalles (LEED®).Additionally, at the end of 2016 we created the area of Administration of Images and Documents, which seeks to minimize the use of paper and increase efficiency. In our next report, we will be able to report some results.


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Participation by pillar::

Group # of activities

Total voluntary hours

Total hours of activities

People assisted and / or benefited

No. of VEAs participating

Accompaniment and Support 163 13,724 646 15,963 2,674

Infrastructure Care for Planet 25 2,040 141 957 397

Solidarity 58 2,291 141 11,175 924

Voluntary knowledge 55 850 156 1,489 245

TOTAL 301 18,905 1,084 29,584 4,240

Developing theCommunity

Developing the CommunityBanco General is involved in the community through the financial support of sports leagues, educational, communitarian and cultural events. Nevertheless, its greatest impact is through volunteer programs and the Good Neighbors Foundation, the executing branch of Banco General’s social work.

Corporate Volunteer Program Neighbors in ActionOur corporate volunteer program, Neighbors in Action, continued its important work in 2017.

Indicator 2013 2014 2015 2016 2017

Active volunteers* 2,918 2,846 3,109 3,189 3,300

% of volunteers with respect to the labor force

75% 72% 72% 71% 71%

Number of volunteer activities

192 184 272 239 301

NGOs benefited 18 19 24 21 26

People benefited 15,335 21,808 23,347 15,993 29,584

* Active volunteers refer to participation in at least one voluntary activity during 2017.

Pillars of workOur corporate voluntary program was structured under four pillars of work, which are a guide for the social management:• Support and emotional accompaniment • Infrastructure and Care for the Planet• Solidarity• Voluntary knowledge

Some specific achievements during 2017:

The new Neighbors in Action Mission is established and clearly defines our commitment and purpose with the community.

The program was structured under four pillars, that are the

guide for the social work carried out by the volunteers.

September was designated Banco General’s Volunteering month.

There was greater participation from volunteers with respect to other years thanks to new incentives, as is Banco General’s Volunteer Month, and the relaunching of Neighbors in Action.

Relaunching of the Juvenile UEA, consisting of children of Banco General collaborators, who are committed to the social work being carried out.

Greater presence of volunteers on a national level on the private business level in Special Olympics activities was fundamental for the organization and development of the 3rd Latin American Games taking place in our country.

32 wishes came true (Panama, Chiriqui, Colon and Veraguas).

The children and youth of the Hope Center House obtained better results in their tests, thanks to tutoring support.

The mystique of volunteering in Costa Rica deepened, resulting in greater participation.

END OF POVERTY ZERO HUNGER HEALTH & WELLNESS

QUALITYEDUCATIONSUSTAINABLE

DEVELOPMENT GOALS


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Futurin Tour of schoolsAs part of our contribution to community development, our subsidiary, ProFuturo, has placed special emphasis on promoting savings in children through a “Futurin Savings Club”, program with the purpose of incentivizing active participation of children in the savings process, with interest in contributing to the formation and education to procure a better future for the Panamanian society.

Since 2010, the “Futurin Tour”, whereby it has been possible to transmit the message on the benefits of savings and caring for the planet to more than 62,200 children in a creative and fun way. In 2017, Futurin presented a magic show to promote the habit of saving to 10,380 children between the ages of 4 and 8.

Additionally, ProFuturo has participated in different events and fairs, bringing good savings and conservation messages to hundreds of children and their families.

Donations by area of attention

38%

16%

14%

11%

6%

6%

5%2%1%1%

Education

Food

Health

Inclusion

Social work

Substitute homes

Seniors

Housing

Self-management

ONG strengthening

Good Neighbors Foundation

In 2017, the Good Neighbors Foundation contributed more than US$4.7 million in support of 170 organizations for the development of 245 social programs focused con meeting the basic needs of the population: food, health and education. These areas of attention are aligned with the objectives of sustainable development numbers 1, 2, 3 of the United Nations.

The programs that we support help supply and/or complement the basic needs of the most vulnerable: children, youth, adults, disabled individuals and seniors.

As a follow up to previous years, we updated the information on progress, new incentives and culmination for the following programs:


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EDUCATION

Indicator 2015 2016 2017

Investment US$1,882,439 US$1,732,643 US$1,786,579

NGO executors 57 52 61

Number of programs 72 68 74

Education is the fundamental tool for the development of a country, and this is the reason why we continue investing in diverse programs focusing on achieving social transformation, especially for people with less opportunities.

We support several educational projects through partnerships with several NGOs, nevertheless, our major focus is on our scholarship programs and on the San Pedro Nolasco School project, located in Burunga, Arraijan.

San Pedro Nolasco SchoolSan Pedro Nolasco School is an educational project developed in partnership with the Pro Children Association of Panama, the Mercedarian Religious Congregation and the Federico Humbert Foundation.

It is a model school endorsed and supported by the Ministry of Education, making this project a public private partnership with the purpose of academically forming and teaching values to students attending the school.

• In 2017 construction of the cafeteria started with a capacity of 250 students.

• The school serves an average of 60 children in early stimulation school, and a total of 271 students, from pre-K to 4th grade.

• Starting in 2017, an Pedro Nolasco School is included in the Panamanian Bilingual Program, important contribution to the future of our students.

It is important to highlight that the school, due to its integral education model and values, has a positive impact not only on students, but also on the educational community and parents that every day have more interest in the education of their children and participate in diverse activities offered as a complement to the plan by the Ministry of Education.

Scholarship ProgramThe Foundation executes and administers two school scholarship programs and two college scholarship programs, having at closing of 2017 238 scholars.

Your Good Neighbors Scholarships for Excellence:These are complete scholarships for outstanding public-school students to attend renowned private high schools.

• In 2017 we celebrated the graduation of the second graduating class of the program with 26 young graduates.

• The renewal rate continues at 97% with 151 students with scholarships for the 2018 school year.

• During the 2017 call, 330 applications were received from students in the capital and main cities in the interior of the country, and after a comprehensive selection process, 24 new scholarships were granted for the 2018 school year.

• An English course and orientation on personal development subjects complements the program.

My Good Neighbor ScholarshipsThis program is for the children of collaborators of Banco General with household incomes of less than US$3,000.00. It has 79 scholars in 2017.

• Nine students finished their high school in December 2017.

• Sixteen new students were accepted to begin their studies during the 2018 school year.

• The retention rate for scholarships in this program is at 90%.

College Scholarships:For Hope House graduates• We have one student in college.

Support to scholars in universities abroad• We have strong partnership with the Danilo Perez Foundation

to cover the expenses and housing for a student with a scholarship from New England Conservatory of Music in Boston, U.S.A.

• We continue supporting the scholarship program of Notre Dame University.


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Other partnerships we maintain in the educational area:

• With Hope House, an integral attention program for the strengthening of skills and abilities of adolescents with social risks of the Samaria Center and the extracurricular education attention program in Santiago, keeping 392 children off of the streets.

• Regarding improvements to school infrastructure, we report:• We contributed to the equipment of the Early Stimulation

Room “Uncle Freddy” at the Virgen Guadalupe Missionary enter in the district of Nurum, in Veraguas, in partnership with the Pro Childhood Association of Panama, the Federico Humbert Foundation and the Interamerican Academy of Panama’s Social Service.

• We have partnerships with associations dedicated to offering therapy and special classes to children with learning disabilities and attention disorders:

• With the Valorete Foundation, we maintain the Aguadulce center, where 73 children receive integral attention.

• With IPER – Panamanian Institution for Education through Radio, we continue supporting their Teacher at Home Program, that in 2017, achieved that 6,889 adult students enrolled in literacy, grade school, middle school and high school. Additionally, we contributed to the equipment for the Audio-Visual Federico Humbert Room.

• We continue supporting the initiatives in progress for the development and integral formation of youth in social risk situations with Fundación Amaneceres, Movimiento Nueva Generación, Gramo Danse, Gimnasio Kiwanis del Chorrillo and Centro de Mujeres Colonenses en Camino, among others.

• Regarding teacher training, we work with Enseña por Panama, ProEd Foundation and the Fullbright Scholar Association.

NUTRITION

Indicator 2015 2016 2017



Number of Programs 28 27 32

In alignment with the Sustainable Development Objectives of the United Nations and being the eradication of hunger and improvement in the adequate nutrition of children, adults and seniors, the more consistent line of attention of the Good Neighbors Foundation for 20 years, we work in partnership with foundations that have school and community cafeterias at a national level.

We place special emphasis on the prevention of malnutrition and the recovery of chronically or severely malnourished children with Nutre Hogar with whom we maintain a Nutritional Cracker program. This daily cracker ration, especially formulated, supplies protein to 3,578 children in the most remote areas of the Ngabe region, and additionally includes micronutrients and deworming. The program also includes weight and size management of the children benefited.

We also support the operation of the nutritional recovery centers of Nutre Hogar in Santiago, Los Santos and Chiriqui and the sub center of Buenos Aires of Nurum.

At Darien, we continue supporting the Pro Children of Darien Foundation, contributing to the nutrition, education and health of 240 children annually.

HEALTH

Indicator 2015 2016 2017

Investment US$1,030,240 US$669,222 US$657,946


Number of Programs 59 51 49

We align with objective number three of the Sustainable Development Objectives, the best quality of life for people who are ill in social risk situations is one of our main areas of attention. Cancer being one of the illnesses with greatest incidence in the Panamanian population, we commit resources to the foundations and organizations that contribute to patients receiving prompt, quality attention. Partnerships with the following stand out:

• FundaCancer, with the #YoLucho campaign that this year committed to the creation of the Skin Clinic at ANCEC clinic of Santiago de Veraguas. This is the first clinic of this type in the interior of the country.

• Foundation Friends of Children with Leukemia and Cancer (FANLYC), for the operation of housing and fundraising and awareness campaigns.

• National Association against Cancer (ANCEC) and ANCEC – Veraguas chapter, for prevention campaigns and construction and equipping of the ANCEC clinic in Santiago.


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Other health partnerships:

• Gift of Life Foundation, with a program for interventions on children with heart illnesses that, from its beginning, has impacted hundreds of children suffering from heart illness. In 2017, 34 patients received assistance through surgeries performed in Panama as well as diagnostic studies, and 15 patients traveled to the United States, Colombia and Spain for surgeries.

• Abou Saad Shriners, contributing to the housing arrangements of 18 children that had surgery in the United States due to burns and/or orthopedic conditions.

• Likewise, we maintain our cooperation with organizations dedicated to helping HIV positive patients, attention to burn victims and others with chronic illness.

• In conjunction with the Pilar Virgen Foundation, we were able to contribute to the housing and food arrangements of 5 transplant surgery patients and their families.

INCLUSION

Indicator 2015 2016 2017




Among the more relevant partnerships we have:• Special Olympics of Panama, with whom we maintain

partnership since its foundation together with Neighbors in Action. Additionally, this year, the Latin-American Games were celebrated, Panama being the host country, 806 athletes participated.

• Distribution of wheelchairs with Pro Integration Foundation. This partnership with Pro Integration and the Wheelchair Foundation allowed the delivery in 2017 of 1,020 wheelchairs. Starting in 2012, we consolidated another agreement with FUNPROI and integrated a component of special chairs for people with cerebral palsy. These chairs are tailored to the needs of the patient and in 2017, 66 special chairs were delivered, improving mobility and quality of life for these families.

• Therapy with the Good Samaritan Association in Colon, Carmen Conte Lombardo Foundation in Coclé, and CEPAVAL in Panama.

• Training and assistance for people with vision impairments in partnership with the National Union of the Blind, Colonenses Club of the Blind and Patronato Luz del Ciego.

• Stimulation and therapy for autistic people at the Teach me How to Live Foundation and I Am Capable Foundation.

SENIORS

IndicaTor 2015 2016 2017




Our commitment with 11 homes that dedicate to the care of 318 seniors is maintained.

SUBSTITUTE HOMES

Indicador 2015 2016 2017

Investment US$287,200 US$280,751 $274,327



We continue to support 12 homes, where a total of 500 orphans or children that cannot stay with their families due to social risk situations are housed and cared for. Our main partnerships in this area are:

• Aldeas Infantiles SOS wherby we contribute to the maintenance of three homes (24 children), in the Village of the city of Panama.

• Ciudad del Niño where we contribute to their tutoring and sports incentive programs for children and youth residing there.

FILANTROPÍA Y CALAMIDADESIn 2017 the Latin-American Special Olympic Games were held in Panama and the Good Neighbors Foundation was a sponsor.


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We are working on this objective with three lines of action:

• With the development of Big Hearts, a technological tool for the management of NGOs that is free for NGOs requiring it.

• Through the Panamanian Chamber of Social Development, which was established in 2017 and whose objective is to join NGOs dedicated to social development for its visualization, professionalization and the exercise of public incidence in matters regarding the sector.

• With the support of Ponteenalgo.com, a site for volunteering that since its implementation in 2012 has achieved to share 1,800 volunteer opportunities and maintains an NGO directory.

• During 2017, we participated as sponsors of the Central American Donors Forum, organized by The Seattle Foundation, that took place in our country, and was a conclave of great value for the exchange of experiences, the establishment of new relationships, and the vision of progress for the region on social development matters.

Sources: The numbers and statistics presented are extracted from the reports that the NGOs present

to the Good Neighbors Foundation and Visual Eskema, application through which information of FSBV

is managed.

The amounts for the programs of Scholarships for Excellence and My Good Neighbors Scholarships

are managed and executed by the Good Neighbors Foundation, they are extracted from Visual

Eskema and Big Hearts which is an application for the management of these programs. Likewise, the

information is contained in the Foundation’s files.

HOUSING

Indicator 2015 2016 2017


NGO executors 2 2 2


In the housing area, our partnership with the TECHO Foundation is the most important, with them and Banco General volunteers, we built 24 temporary houses in the Colinas del Lago y Bendicion de Dios en Chepo communities.

With the Nuestra Señora del Camino foundation, we contributed to the construction of 50 ecological latrines in areas of difficult access in the Ngabe region.

SELF-MANAGEMENT

Indicator 2015 2016 2017

Investment US$63,000 US$62,000 U$35,000

NGO executors 2 2 1


Among the most outstanding programs we can mention the one of the Fundación Pro Artesana Panameña that trained 43 women in the areas of Nurum and Cañazas.

STRENGTHENING OF ONGSDue to its way of working in partnership with other NGOs, The Good Neighbors Foundation, has special interest in the institutional strengthening of other NGOs, so results are achieved more efficiently, that are measurable and, therefore, achieve the objectives within the established terms.

Indicator 2015 2016 2017

Investment US$145,612 US$231,189 US$304,477.34



We support those associations that have limited reach programs or that drive communitarian initiatives.

We also have funds for calamities or emergency situations.

ENVIRONMENT

Indicador 2015 2016 2017

Investment US$10,400 US$23,400 US$27,800.00

NGO executors 2 4 4


Following number 13 of the Sustainable Development Objectives, we maintain initiatives that seek to promote conservation of the environment and environmental education.

We support the Roba Morena Foundation with their monthly fair “I Recycle” that promotes a recycling culture, conservation of nature and respect for the environment.

We also support the Panama Green Association that carries out an annual cleaning of beaches in partnership with other organizations that focus on the environment.

We signed an agreement for two years with the “Clean Mangroves and Rivers” program that initially focused on the recovery of the Matias Hernandez River and that seeks to replicate the model of other rivers in the city of Panama.


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GOODNEIGHBORSFOUNDATION(Panama, Republic of Panama)

CONDENSED FINANCIAL STATEMENTS ANDCONDENSED STATEMENT OF ACTIVITIES

December 31, 2017

(With the Independent Auditors Report)

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GOOD NEIGHBORS FOUNDATION(Panama, Republic of Panama)

Condensed Statement of Financial Position

December 31, 2017

(Amounts in Balboas)

Assets 2017 2016

Deposits in banks

Investment values received in donation

Interest receivable on term depositsO�ce furniture, net of accumulated depreciation Property received in donation Total assets

Liabilities

Other liabilitiesTotal liabilities

Net Assets

The condensed financial statements do not include all the disclosures forecasted bythe accounting criteria described in note 2 of the audited financial statements. The audited financial statements are available on the Foundation’s website.

See Report from the Independent Auditors on condensed financial statements.

9,705,425 8,274,448

6,595,000 6,595,000

137,243 195,5570 1,6370 15,000

16,437,668 15,081,642

9,221 11,1089,221 11,108

16,428,447 15,070,534

GOOD NEIGHBORS FOUNDATION(Panama, Republic of Panama)

Condensed Statement of Activities

For the year ending on December 31, 2017

(Amounts in Balboas)

2017 2016

IncomeDonations receivedIncome from interest on bank deposits Dividends received

Total income

ExpensesDonations grantedProfessional FeesOther expenses, net

Total expensesExcess revenue over expenses

5,481,497 5,179,675,157,331 143,013517,500 472,500

6,156,328 5,795,188

4,638,633 4,565,82165,453 55,20094,329 93,348

4,798,415 4,714,3691,357,913 1,080,819

The condensed financial statements do not include all the disclosures forecasted bythe accounting criteria described in note 2 of the audited financial statements.The audited financial statements are available on the Foundation’s website.

See Report from the Independent Auditors on condensed financial statements.


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Communications on ProgressUnited Nations Global Compact

Human Rights Principlesprinciple 1: Companies must support, and respect, protection of

Human Rights proclaimed in the international arena.

principle 2: Companies must ensure to not be complicit in human rights abuses.

Valuation, policies and objectivesAs is clearly expressed in our Ethics and Conduct Code published at www.bgeneral.com, at Banco General we commit to carrying out business “in accordance with the spirit of the Universal Declaration of Human Rights of the United Nations”. In this sense, we have policies and procedures that within the banking industry seek to ensure respect for all human rights, to not be complicit in their abuse and promote them supporting vulnerable groups.

Under our Code, the rules that govern our treatment of collaborators, providers, the community and, of course, our customers are detailed. In our Mission, Vision and Values we also express our commitment to integrity and respect towards all stakeholders within the organization.

Our main objective is to reinforce all these policies and procedures and have a control system in place that ensures compliance.

ImplementationAmong the specific initiatives that we can highlight is the continuous strengthening of our Environmental and Social Risk Management System that ensures that our credit decisions evaluate not only financial risks, but also environmental and social ones that could infringe upon the rights of people. This System was implemented at Banco General in 2009, and today, is part of our business. In the Environmental section you can find details of some of the progress made.

In the Our People section of this Report, we share some of the important subjects regarding our relationship with our collaborators, whereby we seek fair and equal treatment, a fair relationship between capital and work and a work environment where respect of human rights is promoted.

Regarding our investment in the community, through the Good Neighbors Foundation, working with dozens of ONGs who fight for the fundamental rights of people. For example: we support substitute homes that in the absence of family, help children have their right to a home, to education and protection: we support several ONGs that fight for equal opportunity rights for people with disabilities and their inclusion in society; we support Probidsida and Aid for Aids that fight for human rights of individuals who are HIV positive; we support the Hope House, whose fight against child labor and the right for children to

receive education has been constant. This support is not only financial, but also through our volunteerism, Neighbors in Action.

Measuring the resultsIn several of the sections of our 2017 Social Responsibility Report, the progress and results made on the subject of human rights can be seen.

Relevant indicators of GRI: HR1, HR2, HR3, HR4, HR6, HR7, HR9, HR10, HR11, HR12

Principles of Labor StandardsPrinciple 3: All companies must respect freedom of association

and the effective acknowledgement of the right to collective bargaining.

principle 4: Companies must eliminate all forms of forced or compulsory labor.

principle 5: Companies must effectively abolish child labor.

principle 6: Companies must eliminate discrimination with respect to employment and occupation..

Valuation, policies and objectivesIn our Conduct and Ethics Code we explain the principles and values that govern our relationship with the labor force. Beyond what the law requires, Banco General offers its collaborators the opportunity to develop professionally through the Corporate University, health benefits, well-being and quality of life, growth


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opportunities within the company, voluntary distribution of profits among the staff, among others.

Banco General does not have mechanisms that allow establishment of associations that promote the right to collective bargaining. Therefore, we commit to implementing initiatives that seek giving space and opportunities to collaborators to express their opinions. Thus, we have an organizational climate survey, e-mail boxes and an atmosphere of trust between the various hierarchies.

ImplementationIn the Our People section of our 2017 Social Responsibility Report, there is a detail of the implementation of these policies.

Measuring the resultsIn the Our People section of our 2017 Social Responsibility Report, you can see the results regarding Labor Practices. A very encouraging result is our healthy turnover index.

GRI relevant indicators: G4-11, LA1, LA2, LA4, LA9, LA10, LA11, LA13, LA14, LA15, LA16, HR1, HR5, HR6, HR9, HR11.

Environmental PrinciplesPrinciple 7: Companies should maintain a preventive approach that

favors the environment.

Principle 8: Companies should encourage initiatives that promote greater environmental responsibility.

Principle 9: Companies should favor the development and diffusion of environmentally friendly technologies.

Valuation, policies and objectivesIn our Ethics and Conduct Code we clearly express our commit to responsible consumption and the promotion of environmental responsibility.

ImplementationWe can highlight that in 2017 the Images and Document Digitalization area was created, with the objective of starting to digitalize certain banking processes, making the process more efficient and friendly to the environment.

We would also like to highlight the move of 1,800 collaborators to the Operational Center, a building that was constructed with high environmental standards. Likewise, we continue promoting our recycling program and measuring and improving our energy consumption.

In the Environmental section you can find more details on the implementation of these policies.

Measuring the resultsIn the Environmental section of our 2017 Social Responsibility Report you can find the results on this subject.

GRI Relevant indicators: EC2, EN1, EN2, EN3, EN4, EN6, EN7, EN15, EN16, EN19, EN27, EN29, EN33.

Anticorruption principlesPrinciple 10: Companies should work against corruption in all forms,

including extorsion and bribery.

Valuation, policies and objectivesThe Mission, Vision and Values, as well as the Ethics and Conduct Code of Banco General detail our valuation and policies regarding anticorruption. But, beyond our formal policies, a corporate culture is promoted and lived based on values that come from leadership. In reality, this is the basis for working against corruption in all forms.

ImplementationThe Banking industry in Panama and the countries in which we operate are strictly regulated having many control systems. This is detailed in the Governance and Fair Operating Practices section.

Measuring the resultsIn the Governance and Fair Operating Practices section you can find the detailed measurement of our results.

GRI EC1, EC3, EC6, HR2, HR7, SO2, SO4, SO5 and SO7 relevant indicators.

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PROFILE INFORMATION

DESCRIPTION CROSS-REFERENCE/DIRECT RESPONSE

EXTERNALVERIFICATION

G4-1 Statement from the ultimately responsible for decision making in the organization. Message from the President 3

PROFILE OF THE ORGANIZATION

G4-3 Name of the organization Company profile 3

G4-4 Main brands, products and/or services Company profile 3

G4-5 Location of the organization’s main office. Company profile 3

G4-6Number of countries in which they develop significant activities specifically, regarding the aspectsof sustainability addressed in this report.

Company profile 3

G4-7 Nature of the property and legal form. Company profile 3

G4-8 Markets served (including geographical breakdown, the sectors it supplies and the type of customers/beneficiaries. Company profile 3

G4-9 Size of the organization Company profile 3

G4-10 Breakdown of the workers by type of employment, by contract, by region and by gender. Our people 3

G4-11 Percentage of workers covered by a collective bargaining agreement Our people 3

G4-12 Description of the organization’s supply chain Prácticas justas de operación 3

G4-13 Significant changes during the reporting period in size, structure, supply chain and organization’s property Labor Standards Principles (COP) 3

G4-14 Report on how the precautionary principle is applied by the organization. Governance 3

G4-15 List of principles and external commitments the organization ispart of. Company profile 3

G4-16 List or organizations in which the organization actively participates in. Company profile 3

PARAMETROS DEL REPORTE

GRI G4 ESSENTIAL “CORE” OPTION

Option: “Core”

Profile content

Strategy and Analysis

PROFILE INFORMATION



G4-17 Companies included in the organization’s financial statements. Annual Report and Financial Statements, www.bgeneral.com 3

G4-18 Process to define the content of the report and the Aspect limits. Governance 3

G4-19 List of all material Aspects identified in the content definition process of the Report. Governance 3

G4-20 For each material Aspect, report of the Aspect Limits within the organization. Governance 3

G4-21For each material Aspect, report of the Aspect Limit outside the organization

Governance 3

G4-22

Description of the effect restatement of information on prior annual reports may have, and the reasons motivatingsuch restatement (e.g., mergers, and acquisitions, change in informational periods, nature of the business, or valuation method

No changes 3

G4-23 Significant changes regarding prior periods in the scope and coverage of methods of valuation applied in the report. No changes 3

STAKEHOLDER ENGAGEMENT

G4-24 Detail of stakeholders the organization has included Governance 3

G4-25 Base for identification and selection of stakeholders to which the organization has committed. Governance 3

G4-26 Form of stakeholder engagement, including frequency by type and stakeholder group. Governance 3

G4-27 Key subjects and concerns that have resulted from this engagement and how we have responded. Governance 3

REPORT PROFILE

G4-28 Period covered by the information contained in the report. About this Report 3

G4-29 Date of the most recent annual report, if any. About this Report 3

G4-30 Submission cycle for annual report (annual, biennial, etc.). About this Report 3

G4-31 Contact point for matters regarding the report or its content. About this Report 3

G4-32 Chart indicating the location of the basic content of the report. Index 3

G4-33 External certification Page 37 3

GOVERNANCE

G4-34

Organization’s governance structure, including the committees of the highest governance body responsible for tasks such as definition of the strategy or supervision of theorganization.

Governance Corporate Governance Manual 3

ETHICS AND INTEGRITY

G4-56 Description of the values, principles, standards and rules of conduct of the organization.

GovernanceEthics and Conduct Code 3

Table of Contents of theGlobal Reporting Initiative GRI G4


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PROFILE INFORMATION



INDICADORES DE DESEMPEÑO

ECONOMIC

ECONOMIC PERFORMACE

EC1

Direct economic value generated and distributed, including income, operating costs, employee compensation, donations and other investments in the community, benefits not distributed and payments to capital and government providers.

Governance 3

EC2 Financial consequences and other risk and opportunities for activities of the organization due to climate change. Environment 3

EC3 Coverage of obligations of the organization due to social benefit programs.

Banco General complies with retirement plans in the countries it operates. 3

EC4 Significant financial assistance from governments. No significant assistance wAS received from governments. 3

PRESENCE IN THE MARKET

EC5Range in the relations between the initial salary standard broken down by gender and the minimum local salary in places where significant

Our People 3

EC6 Proportion of senior managers from the local community in places where significant operations take place.

Only one Director on the Board of Directors is not Panamanian; in upper management, only one Vice-president is not Panamanian.

3

INDIRECT ECONOMIC IMPACT

EC7

Development and impact of investments in infrastructure and Foundation services rendered mainly for the benefit of the public through commercial commitment, pro bono,or in kind

Community: Your Good Neighbors 3

EC8Knowledge and description of significant indirect economic impact, including the scope of those impacts. 3

PROCUREMENT PRACTICES

EC9 Expenses with local providers where significant operations take place. Fair Operating Practices 3

ENVIRONMENTAL

PROFILE INFORMATION



MATERIALS

EN1 Materials used, by weight and volume Environment – use of paper 3

EN2 Percentage of materials used that are recycled. No recycled materials are used 3

ENERGY

EN3 Direct energy consumption broken down by primary sources. Environment – energy consumption 3

EN4 Indirect energy consumption broken down by primary sources. Environment – energy consumption 3

EN5 Energy intensity Environment – energy consumption 3

EN6 Reduction in energy consumption Environment – energy consumption 3

EN7

Initiatives to provide products and services that are efficient in the consumption of energy or are based on renewable energies and reduction in the consumption of energy as aresult of such initiatives.

Environment – energy consumption 3

EMISSIONS, LANDFILLS AND WASTE

EN15 Direct emissions of greenhouse gases (Scope 1) Environment - carbon footprint 3

EN16 Indirect emissions of greenhouse gases (Scope 2) Environment - carbon footprint 3

EN17 Other emissions of greenhouse gases (Scope 3) Has not been measured 3

PROFILE INFORMATION



EN18 Intensity of emissions of greenhouse gases Has not been measured 3

EN19 Reduction of greenhouse gases Environment – carbon footprint 3

EN20 Emission of ozone-depleting substances (ODS). Has not been measured 3

EN21 NO, SO and other significant emissions by type and weight. Has not been measured 3

PRODUCTS AND SERVICES

EN27 Initiatives to mitigate environmental impact of products and services, and reduction level of the impact. Environment – LEED, recycling 3

GENERAL

EN33 Current and potential negative effects of significance in the supply chain and action taken.

We did not evaluate current and potential negative effects in the supply chain. 3

SOCIAL: LABOR PRACTICES AND DECENT WORK

EMPLOYMENT

LA1Total number of employees and rate for new hires and average turnover of employees, broken down by age,gender and region.

Our people 3

LA2Social benefits for permanent staff that are not offered to temporary part-time employees broken down by locations with significant activity.

There are no part-time employees 3

LA3 Levels of reincorporation to work and retention after maternity or paternity eave, broken down by gender.

Banco General complies with mandatory maternity policies of the countries it operates in.

3

EMPLOYEE/COMPANY RELATIONSHIPS

LA4Minimal notice period(s) regarding organizational changes, including if these notices are specified in the collective agreements.

There is no notice period regarding organizational changes 3

TRAINING AND EDUCATION

LA9 Average training hours per year per employee, broken down by gender and employment category. Our people 3

LA10Skill management and continuous training programs that promote employability of workers and support in management of the end of their professional careers.

Our people 3

LA11 Percentage of employees who receive regular performance evaluations broken down by gender. Our people 3

EVALUATION OF PROVIDERS REGARDING LABOR MATTERS

LA13 Relation between base salary of men and women, broken down by professional category Our people 3

EVALUATION OF PROVIDERS REGARDING LABOR MATTERS

LA14 Porcentaje de nuevos proveedores que fueron evaluados con criterios laborales.

Nuestros proveedores no son evaluados formalmente con criterios laborales pero enviamos cartas de compromiso, ver Prácti-cas Justas de Operación

3

PRÁCTICAS LABORALES Y MECANISMOS DE RECLAMOS

LA16 Complaints of labor practices filed, evaluated and resolved through formal channels.

There were no complaints filed through formal channels. 3

SOCIAL: HUMAN RIGHTS

INVESTMENT AND SUPPLY PRACTICES

HR1

Percentage and total number of significant investment agreements that include clauses that incorporate concerns on human rights matters or that have been subjected to analysis regarding human rights.

Through environmental risk management social risk is analyzed including violation of human rights.

3


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PROFILE INFORMATION



HR2Total training hours for employees on policies and procedures regarding human rights aspects relevant to their activities, including the percentage of employees trained.

Governance, Safety and Compliance 3

NONDISCRIMINATION

HR3 Total number of incidents regarding discrimination and the corrective measures adopted.

There were no incidents of discrimination reported. 3

FREEDOM OF ASSOCIATION AND COLLECTIVE AGREEMENTS

HR4

Significant operations and providers identified whereby freedom of association and collective agreements may be violated or face serious risks, and the measures adopted to support such rights.

Operations or providers with this criteria are not evaluated. 3

EXPLOITING CHILDREN

HR5

Significant operations or providers dentified hat involve a significant risk regarding incidents of child exploitation, and the measures adopted to contribute to the effective abolishment of children exploitation.

Fair Operating Practices; Environment – SGAS 3

FORCED LABOR

HR6

Significant operations or providers identified as a significant risk for being the source of forced or compulsory labor, and the measures adopted to contribute to elimination of all forms of forced and compulsory labor.

Fair Operating Practices; Environment – SGAS 3

SAFETY PRACTICES

HR7Percentage of security personnel trained regarding the organization’s policies and procedures regarding human rights relevant to the activities.

Governance 3

EVALUATION

HR9Percentage and total number of operations that have been subject to review or that impact evaluation of human rights matters.

Environment, SGAS 3

EVALUATION OF PROVIDERS DUE TO HUMAN RIGHTS MATTERS

HR10 Percentage of new providers that were evaluated using human rights criteria.

Our providers are not formally Our providers are not formally criteria, but we send out commitment letters, see Fair Operating Practices

3

HR11 Percentage and total number of operations subject to review or evaluation regarding impacts on human rights.

No operations with this criterion have been reviewed or evaluated, apart from our Social and Environmental Risk Management System.

3

CORRECTIVE MEASURES

HR12

Number of complaints regarding human rights that have been submitted, addressed and resolved through formal conciliatory mechanisms. There were no complaints. 3

SOCIAL: SOCIETY

LOCAL COMMUNITIES

SO1Percentage of operations where development programs, evaluation of impact and participation in the local community have been implemented.

Community Development and Your Good Neighbors Foundation 3

SO2 Operations with possible or real significant negative impact on local communities. Your Good Neighbors Foundation 3

CORRUPTION

SO3 Percentage and total number of business units analyzed with respect to risks regarding corruption.

Through Operational Risk, promotion of integral analysis of operational risk in all areas, including risks regarding corruption. Nevertheless, these areas are not analyzed specifically for these risks.

3

SO4 Percentage of employees trained on policies and procedures regarding anticorruption in the organization. Governance 3

SO5 Measures taken in response to corruption incidents. If an internal corruption event were to occur, Human Capital will decide the disciplinary measures to be taken

3

PUBLIC POLICY

SO6 Total value of the financial contributions and in kind to any political party or related institution, by country.

Banco General did not make financial or in kind contributions to any political party or institution in any country in which it operates.

BEHAVIOR OF UNFAIR COMPETITION

SO7Total number of actions due to causes relating to monopolistic practices and against free competition, and the results.

There were no actions taken due to monopolistic practices or against free competition.

3 page 37

REGULATORY COMPLIANCE

SO8Monetary value of significantsanctions and fines and total number of non-monetary sanctions resulting from noncompliance with laws and regulations.

There were no fines 3 page. 37

EVALUATION OF PROVIDERS ON THEIR IMPACT ON SOCIETY

SO9 Percentage of new providers that were evaluated using criteria of their impacts on society. Fair operating practices 3

SO10 Potential and real negative impacts on society found in the supply chain and measures taken. Fair operating practices 3

MANEJO DE QUEJAS PARA IMPACTOS EN LA SOCIEDAD

SO11Número de quejas presentadas a través de mecanismos formales sobre impactos en la sociedad presentados, evaluados y resueltos.

No se presentaron quejas. 3

SOCIAL: PRODUCT RESPONSIBILITY

PRODUCT AND SERVICES LABELING

PR3

Types of information on products and services required by current procedures and regulations, and percentage of products and services subject to such informational requirements.

We comply 100% with the regulations regarding the types regulations regarding the types products and services

3

PR4

Total number of non-compliance incidents regarding regulations and voluntary codes regarding informationand labeling of products and services, distributed according to the type of result of said incidents.

There was no failure to comply 3

PR5 Practices regarding customer service, including the results of customer satisfaction studies. Relationships with customers 3

MARKETING COMMUNICATIONS

PR6

Programs for compliance with laws or adhesion to standards and voluntary codes stated in marketing communications, including advertising, other promotional activities and sponsorships.

Our Ethics and Conduct Code details or policy regarding communications and marketing; additionally, we comply 100% with the regulations in countries where we operate.

3

PR7

Total number of noncompliance incidents regarding regulations relative to marketing communications,including advertising, promotion and sponsorship, distributed in function of the type of results of said incidents.

There were no incidents

CUSTOMER PRIVACY

PR8 There were no fines 3

CUMPLIMIENTO NORMATIVO

PR9

Cost of significant fines due to noncompliance with regulationsregarding the supply and use the of organization’s products and services.

There were no fines 3


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EDITIONManagement of Corporate Social Responsibility

DESIGNKiosco Creativo

DATE OF EDITIONMarch 2018

This social report is disclosed on Banco General’s website: www.bgeneral.com.

We publish an executive summary of this report in a newspaper of wide distribution.

This social report also is available on the global pact’s website: www.unglobalcompact.org, as part of our commitment as signatory company.

With this social report, Banco General celebrates 12 consecutive years sharing its efforts in support of the socioeconomic development of the community.

Tel: (507) 303-5307 Fax: (507) 303-5305

www.bgeneral.com [email protected]

Apartado/P.O. Box 0816-00843, Panamá, República de Panamá

2017 SOCIAL RESPONSIBILITY REPORT

Externalletter ofCertification

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Keeping his values aliveis our commitment.