Financiera Independencia Reports 3Q12 Results

MEXICO CITY, Oct. 25, 2012 /PRNewswire/ --

  • Total loan portfolio reached Ps.7,303.8 million, a 4.0% year-over-year increase, mainly driven by growth in Apoyo Economico Familiar individual loans and Finsol Mexico group loans
  • Non-performing loans ratio decreased to 9.4% in 3Q12 from 10.4% in 2Q12 and 10.0% in 3Q11
  • NIM after provisions including fees increased to 45.1% in 3Q12, from 43.0% in 3Q11
  • Provisions for loan losses decreased to 41.1% of financial margin in 3Q12, from 45.3% in 2Q12 and 42.4% in 3Q11
  • Funding cost decreased to 10.89% in 3Q12, from 11.26% in 3Q11 but increased from 10.76% in 2Q12
  • Net lncome of Ps.8.0 million for 3Q12 compared with Ps.18.7 million in 3Q11 and a Net Loss of Ps.38.2 million in 2Q12
  • Equity to total assets of 28.1% compared with 29.0% in 3Q11 and 28.3% in 2Q12
  • ROE in 3Q12 was 1.1%, compared with 2.5% in 3Q11.

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- and nine-month periods ended September 30, 2012. During 3Q12 the Company recorded a Net Income of Ps.8.0 million compared with the Ps.18.7 million of 3Q11.


Financial & Operational Highlights











3Q12

3Q11

%


9M12

9M11

%


Income Statement Data







Net Interest Income after Provisions*

634.1

542.0

17.0%

1810.5

1,692.3

7.0%

Net Operating Income (Loss)*

9.9

48.6

-79.6%

9.7

261.5

-96.3%

Net Income (Loss)*

8.0

18.7

-57.3%

3.9

165.7

-97.6%

Total Shares Outstanding (million)

715.9

715.9

0.0%

715.9

715.9

0.0%

Earnings (Loss) Per Share

0.0112

0.0261

-57.3%

0.0055

0.2314

-97.6%

Profitability & Efficiency







NIM before Provisions Excl. Fees

55.6%

50.9%

4.7 pp

53.9%

50.0%

3.8 pp

NIM after Provisions Excl. Fees

32.7%

29.3%

3.4 pp

30.7%

32.2%

-1.5 pp

NIM after Provisions Incl. Fees

45.1%

43.0%

2 pp

43.4%

45.0%

-1.6 pp

ROA

0.3%

0.7%

-0.4 pp

0.0%

2.3%

-2.3 pp

ROE

1.1%

2.5%

-1.4 pp

0.2%

7.4%

-7.2 pp

Efficiency Ratio Incl. Provisions

98.9%

93.9%

5 pp

99.6%

89.0%

10.7 pp

Efficiency Ratio Excl. Provisions

65.6%

62.5%

3.1 pp

65.0%

63.7%

1.3 pp

Operating Efficiency

32.9%

28.5%

4.4 pp

31.6%

29.3%

2.3 pp

Fee Income

20.8%

21.7%

-0.8 pp

23.1%

23.5%

-0.5 pp

Capitalization







Equity to Total Assets

28.1%

29.0%

-0.9 pp

28.1%

29.0%

-0.9 pp

Credit Quality Ratios







NPL Ratio

9.4%

10.0%

-0.6 pp

9.4%

10.0%

-0.6 pp

Coverage Ratio

84.4%

72.7%

11.7 pp

84.4%

72.7%

11.7 pp

Operational Data







Number of Clients

1,442,053

1,559,466

-7.5%

1,442,053

1,559,466

-7.5%

Number of Offices

532

491

8.4%

532

491

8.4%

Total Loan Portfolio* 

7,303.8

7,024.5

4.0%

7,303.8

7,024.5

4.0%

Average Balance (Ps.)

5,064.9

4,504.4

12.4%

5,064.9

4,504.4

12.4%


* Figures in millions of Mexican Pesos.









Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "This was another challenging quarter in terms of profitability, as we continue to implement company-wide strategic measures to improve the quality of our assets. The actions that we have communicated in past quarters are starting to show positive results as provisions for loan losses decreased on a sequential basis.

"However, we remain cautious as this is a long-term process in response to a more challenging competitive landscape. While these measures positively impact the quality of our loan portfolio, they also affect the volume of new loan origination given the implementation of more restrictive credit policies.

"Going forward, this may represent further challenges to our bottom line, but we are confident we will start seeing the benefits in the medium term," concluded Mr. Gonzalez.

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 unaudited 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 September 30, 2012, Independencia had a total outstanding loan balance of Ps.7,303.8 million, operated 532 offices in Mexico, Brazil, and the US and had a total labor force of 13,006 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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