2014

FINDEP delivers FY2013 results consistent with its goals: Net Income of Ps.254.1 million, Loan Portfolio growth of 1.7% and a NPL ratio of 7.3%.(1)

MEXICO CITY, Feb. 20, 2014 /PRNewswire/ --

  • Net Income of Ps.81.3 million in 4Q13, compared to a Net Loss of (Ps.120.4) million in 4Q12, and a 23.5% growth versus 3Q13.
  • NIM after provisions including fees increased to 48.7% in 4Q13, a 1,125 bps improvement versus 4Q12; reflecting the effect from the Ps.300.0 million loan portfolio clean-up performed in 4Q12. Excluding this effect, this ratio would have increased 283 bps, highlighting the success of the Company's new operating policies.
  • Loan portfolio of Ps.6,836.6 million, a 1.7% increase versus 4Q12, which reflects the impact from the new operating policies implemented in 4Q12 to prioritize loan portfolio quality over size. This is the 4th consecutive quarter of consistent sequential growth.    
  • Non-performing loans (NPLs) increased by 35.3% and the NPL ratio reached 7.3% in 4Q13, consistent with the Company's expectations, principally driven by improvements at Independencia and Finsol Mexico. Excluding the impact from the Ps.300.0 million loan portfolio clean-up performed in 4Q12, NPLs decreased 25.3%; underscoring the success of the Company's new strategic focus.
  • Write offs fell by 57.0% YoY, to Ps.314.5 million in 4Q13. Excluding the effect of the loan portfolio clean-up of 4Q12, write-offs for 4Q13 would have decreased 27.0% YoY.
  • The average effective lending rate increased by 118 bps to 74.1% in 4Q13 versus 4Q12; while the funding cost decreased by 2 bps to 10.89% in the same period.
  • Equity to total assets of 30.0%, a 153 bps improvement versus 4Q12.
  • ROAE in 4Q13 was 10.7%, compared to (16.6%) in 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, announces results for the three and twelve-month periods ended December 31th, 2013.  

Financial & Operational Highlights








4Q13

4Q12

%


12M13

12M12

%

Income Statement Data








Net Interest Income after Provisions*

691.7

505.3

36.9%


2,873.4

2,315.8

24.1%

Net Operating Income (Loss)*

84.5

-174.5

n/a


330.0

-164.8

n/a

Net Income (Loss)*

81.3

-120.4

n/a


254.1

-116.5

n/a

Total Shares Outstanding (million)

715.9

715.9

0.0%


715.9

715.9

0.0%

Earnings (Loss) Per Share

0.1135

-0.1682

n/a


0.3550

-0.1627

n/a

Profitability & Efficiency








NIM before Provisions Excl. Fees

59.3%

58.7%

0.6 pp


56.5%

56.6%

-0.1 pp

NIM after Provisions Excl. Fees

37.9%

27.2%

10.7 pp


39.8%

30.7%

9.1 pp

NIM after Provisions Incl. Fees

48.7%

37.4%

11.2 pp


50.4%

43.1%

7.3 pp

ROA

3.2%

-4.7%

7.9 pp


2.5%

-1.1%

3.6 pp

ROE

10.7%

-16.6%

27.3 pp


8.6%

-3.9%

12.5 pp

Efficiency Ratio Incl. Provisions

90.5%

125.1%

-34.6 pp


90.9%

105.1%

-14.1 pp

Efficiency Ratio Excl. Provisions

62.8%

67.9%

-5.1 pp


68.3%

65.7%

2.6 pp

Operating Efficiency

31.4%

33.8%

-2.4 pp


32.6%

32.5%

0.1 pp

Fee Income

14.2%

21.4%

-7.2 pp


15.2%

22.7%

-7.5 pp

Capitalization








Equity to Total Assets

30.0%

28.4%

1.5 pp


30.0%

28.4%

1.5 pp

Credit Quality Ratios








NPL Ratio

7.3%

5.5%

1.8 pp


7.3%

5.5%

1.8 pp

Coverage Ratio

100.0%

117.5%

-17.5 pp


100.0%

117.5%

-17.5 pp

Operational Data








Number of Clients

1,156,862

1,355,400

-14.6%


1,156,862

1,355,400

-14.6%

Number of Offices

556

536

3.7%


556

536

3.7%

Total Loan Portfolio* 

6,836.6

6,722.8

1.7%


6,836.6

6,722.8

1.7%

Average Balance (Ps.)

5,909.6

4,960.0

19.1%


5,909.6

4,960.0

19.1%

* Figures in millions of Mexican Pesos.






n/a: Not applicable







Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "In the 4Q13, Financiera Independencia concluded its 1st full year of operations under its new strategic focus of prioritizing portfolio quality and profitability over size."

"In spite of a more challenging macroeconomic environment, the Company's new operating policies allowed us to grow our portfolio by 1.7%, but in a much more profitable and efficient way."

"This allowed us to reach: a net income of Ps. 254.1 million, versus a net loss of Ps.116.5 million in 2012, and a NPL ratio of 7.3% --a notable 222 bps decrease from the 9.5% that the Company would have reported in 4Q12 had we not performed the one-off Ps.300.0 million loan portfolio clean-up."

4Q13 EARNINGS CONFERENCE CALL



Day:          

Friday February 21st, 2014



Time:            

11:00 AM US EST; 10:00 AM Mexico City time



Dial-in number:    

877-314-5894 (US & Canada)


631-291-4620 (International & Mexico)



Access Code:      

56872996



Web cast:         

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



Replay:              

Starting at 2:00 pm EST on February 21st and ending at 11:59 pm EST on February 28th, 2014. The replay will be accessible by dialing (855) 859-2056 (U.S./Canada) or 404-537-3406 (international) and entering pass code 56872996.

About Financiera Independencia:

Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (FINDEP), is a Mexican microfinance lender of personal loans to individuals and working capital loans through group lending microfinance. FINDEP 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 December 31th, 2013, FINDEP had a total outstanding loan balance of Ps.6,836.6 million, operated 556 offices in Mexico, Brazil, and the US and had a total labor force of 11,776 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". On November 30, 2009 FINDEP launched a sponsored Level I American Depositary Receipt (ADR) program in the United States. Each ADR represents 15 shares of FINDEP 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 FINDEP´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.

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.

[1] All financial figures discussed in this earnings release are audited and prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. / Figures for 2013 and 2012 are expressed in nominal pesos. / Tables state figures in millions of pesos, unless otherwise noted. / FINDEP: refers to Financiera Independencia and all of its subsidiaries / Independencia: refers to operations excluding Finsol, AEF and AFI.

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



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