Financiera Independencia Reports 1Q13 Results

MEXICO CITY, April 22, 2013 /PRNewswire/ --  

  • Total loan portfolio of Ps.6,571.4 million, a 10.8% year-over-year decrease, mainly due to the clean-up operation undergone in 4Q12 to adjust to new operating standards, and a contraction of Finsol's total loan portfolio
  • Non-performing loan ratio of 7.7% in 1Q13 compared to 9.8% in 1Q12, principally driven by a decrease in core business's Non-performing loans reflecting the new operating standards implemented in 2012
  • Total loan origination of Ps.2,414.9 million, down 19.9% year-on-year and 13.8% sequentially reflecting more stringent approval standards at Independencia's individual loan business
  • NIM after provisions including fees increased to 52.8% in 1Q13, from 43.9% in 1Q12
  • Provisions for loan losses decreased to 24.0% of financial margin in 1Q13, from 53.7% in 4Q12 and 42.7% in 1Q12
  • Funding cost was 10.90% in 1Q13, in line with the 10.90% posted in 4Q12 and 1Q12
  • Net Income of Ps.50.8 million in 1Q13 compared with the Ps.34.2 million in 1Q12 and the net loss of  Ps.120.4 million registered in 4Q12
  • Equity to total assets of 28.9% compared with 28.6% in 1Q12, and 28.4% in 4Q12
  • ROE in 4Q12 was 7.1%, compared with 4.5% in 1Q12, and with the negative 16.6% of 4Q12  

Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP; OTC: FNCRY), ("Findep" or the "Company") a leading Mexican microfinance lender of personal loans to lower income segment individuals and working capital loans through group lending microfinance, announced today results for the three-month period ended March 31, 2013. During 1Q13 the Company recorded a Net Income of Ps.50.8 million compared with the Ps.34.2 million of 1Q12.

Financial & Operational Highlights





1Q13

1Q12

%

Income Statement Data




Net Interest Income after Provisions*

759.6

610.1

24.5%

Net Operating Income (Loss)*

73.3

42.2

73.5%

Net Income (Loss)*

50.8

34.2

48.6%

Total Shares Outstanding (million)

715.9

715.9

0.0%

Earnings (Loss) Per Share

0.0709

0.0477

48.6%

Profitability & Efficiency




NIM before Provisions Excl. Fees

56.3%

54.1%

2.2 pp

NIM after Provisions Excl. Fees

42.8%

31.0%

11.8 pp

NIM after Provisions Incl. Fees

52.8%

43.9%

8.8 pp

ROA

2.0%

1.3%

0.8 pp

ROE

7.1%

4.5%

2.6 pp

Efficiency Ratio Incl. Provisions

92.2%

95.1%

-2.9 pp

Efficiency Ratio Excl. Provisions

73.4%

62.3%

11 pp

Operating Efficiency

34.5%

30.6%

4 pp

Fee Income

15.1%

24.3%

-9.2 pp

Capitalization




Equity to Total Assets

28.9%

28.6%

0.3 pp

Credit Quality Ratios




NPL Ratio

7.7%

9.8%

-2 pp

Coverage Ratio

108.0%

79.7%

28.2 pp

Operational Data




Number of Clients

1,260,431

1,613,681

-21.9%

Number of Offices

538

517

4.1%

Total Loan Portfolio* 

6,571.4

7,367.8

-10.8%

Average Balance (Ps.)

5,213.6

4,565.9

14.2%

* Figures in millions of Mexican Pesos.




Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said,  "Last quarter, and to a greater extent, all of last year, were an adjustment period for Financiera Independencia.

"Culminating in September of 2012, new tighter operating standards came into effect, radically changing the way we execute our traditional business, and given the excellent results, we made a decision to affect our 4Q12 financials to set the proper scenario for 2013.

"During 1Q13 we continued to bear witness to the success of these strategies, and we are pleased with the results.

"As our tighter standards took hold, top line growth was negative 11% compared to last year; our NPL ratio however, declined more than 20% to 7.7%, and more importantly, provisions for loan losses, were down 47.2%.

"Tracking our daily delinquency roll rates, we continue to see improvements in 30, 60 and 90 days past-due loans. These specific roll rates, decreased from the 8.6%, 4.8% and 3.7% observed in October, to 7.6%, 3.4% and 2.8% respectively, at the end of 1Q13.

"We are confident that these improvements will continue to bear fruit for the remainder of the year and that this quarter's results show that we are on the way back to historic levels of profitability," noted Mr. Gonzalez.

1Q13 EARNINGS CONFERENCE CALL



Day: 

Tuesday April 23, 2013



Time: 

10:00 AM US EDT; 9:00 AM Mexico City time



Dial-in number:  

866-393-9621 (US & Canada)


706-758-4196 (International & Mexico)



Access Code:

36500780



Web cast:  

A live web cast of the conference call and replay will be available at www.findep.mx



Replay:

Starting at 1:00 pm EDT on April 23 and ending at 11:59 pm EDT on April 30, 2013. The replay is accessible by dialing (855) 859-2056 (U.S./Canada) or 404-537-3406 (international) and entering pass code 36500780.


To obtain the full text of this earnings release, please visit our Investor Relations website at www.findep.mx under the Financial Information / Quarterly Reports section.

All financial figures discussed in this announcement are audited and are prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. Figures for 2011 and 2012 are expressed in nominal pesos. Tables state figures in millions of pesos, unless otherwise noted. Independencia: refers to operations excluding the acquisitions of Finsol, AEF and AFI.   NM: Not Meaningful

About Financiera Independencia:

Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (Independencia), is a Mexican microfinance lender of personal loans to individuals and working capital loans through group lending microfinance. Independencia provides microcredit loans on an unsecured basis to individuals in the low-income segments in Mexico in urban and rural areas of both the formal and informal economy. As of March 31, 2013, Independencia had a total outstanding loan balance of Ps.6,571.4 million, operated 538 offices in Mexico, Brazil, and the US and had a total labor force of 12,492 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". On November 30, 2009 Independencia launched a sponsored Level I American Depositary Receipt (ADR) program in the United States. Each ADR represents 15 shares of Independencia common stock and trades over-the-counter (OTC). More information can be found at www.findep.mx

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in Financiera Independencia's filings with the Mexican Stock Exchange. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.



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