FINDEP delivers Net Income of Ps.100.7 million, a 98.4% YoY growth, and a NPL Ratio of 6.3%, the lowest in its history as a public company [1]

MEXICO CITY, April 10, 2014 /PRNewswire/ --

  • Total Loan Portfolio of Ps.6,700.9 million, a 2.0% increase YoY, consistent with the Company's current strategic focus of prioritizing loan portfolio quality and profitability over size.
  • NIM after provisions including fees was 52.5% in 1Q14, a 29 bps decrease derived from a higher base of comparison in 1Q13. On December 2012, the Company performed a loan portfolio clean-up by registering Ps.175.0 million of additional Provision for Loan Losses and advancing Ps.300.0 million in Write Offs.  The extraordinary Write Offs resulted in an NPL Coverage Ratio in excess, which demanded lower provisions during 1Q13 as it returned to equilibrium. Excluding this effect, NIM after provisions including fees would have shown an 80 bps increase.
  • Non-performing loans (NPLs) decreased by 16.6% YoY and the NPL Ratio reached 6.3% in 1Q14; a new record low that highlights the success of the Company's new operating policies.
  • Write Offs increased by 160.6% YoY, to Ps.329.0 million in 1Q14. Excluding the effect of the extraordinary loan portfolio clean-up in 4Q12, which advanced Ps.300.0 million write-offs that would have taken place during 1Q13, write-offs for 1Q14 would have decreased 22.8% YoY.
  • The average effective lending rate decreased by 33 bps to 70.7% in 1Q14 versus 1Q13; while the funding cost decreased by 20 bps to 10.70% in the same period.
  • Equity to total assets of 31.1%, a 220 bps improvement versus 1Q13.
  • ROAE in 1Q14 was 12.8%, a 575 bps improvement when compared to 7.1% in 1Q13.

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-month period ended March 31st, 2014.

Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "For a fifth consecutive quarter, Financiera Independencia has delivered strong results, consistent with our expectations and strategic focus on prioritizing loan portfolio quality and profitability over size."

"Loan portfolio grew 2.0% YoY, and our NPLs contracted 16.6% to reach an NPL ratio of only 6.3%; the lowest ever in our history as a public company. This allowed us to reach a net income for the quarter of Ps.100.7 million, a 98.4% YoY growth versus 1Q13, and the 5th consecutive quarter of consistent sequential net income growth."

"With this, we maintain and strengthen our steady return to our company's historical levels of profitability."

Financial & Operational Highlights






1Q14

1Q13

%


3M14

3M13

%

Income Statement Data








Net Interest Income after Provisions*

746.4

759.6

-1.7%


746.4

759.6

-1.7%

Net Operating Income (Loss)*

136.8

73.3

86.7%


136.8

73.3

86.7%

Net Income (Loss)*

100.7

50.8

98.4%


100.7

50.8

98.4%

Total Shares Outstanding (million)

715.9

715.9

0.0%


715.9

715.9

0.0%

Earnings (Loss) Per Share

0.1407

0.0709

98.4%


0.1407

0.0709

98.4%

Profitability & Efficiency








NIM before Provisions Excl. Fees

55.9%

56.3%

-0.3 pp


55.9%

56.3%

-0.3 pp

NIM after Provisions Excl. Fees

40.9%

42.8%

-1.8 pp


40.9%

42.8%

-1.8 pp

NIM after Provisions Incl. Fees

52.5%

52.8%

-0.3 pp


52.5%

52.8%

-0.3 pp

ROA

3.9%

2.0%

1.9 pp


3.9%

2.0%

1.9 pp

ROE

12.8%

7.1%

5.8 pp


12.8%

7.1%

5.8 pp

Efficiency Ratio Incl. Provisions

85.7%

92.2%

-6.5 pp


85.7%

92.2%

-6.5 pp

Efficiency Ratio Excl. Provisions

66.6%

73.4%

-6.7 pp


66.6%

73.4%

-6.7 pp

Operating Efficiency

31.9%

34.5%

-2.7 pp


31.9%

34.5%

-2.7 pp

Fee Income

13.1%

15.1%

-2 pp


13.1%

15.1%

-2 pp

Capitalization








Equity to Total Assets

31.1%

28.9%

2.2 pp


31.1%

28.9%

2.2 pp

Credit Quality Ratios








NPL Ratio

6.3%

7.7%

-1.4 pp


6.3%

7.7%

-1.4 pp

Coverage Ratio

100.0%

108.0%

-8 pp


100.0%

108.0%

-8 pp

Operational Data








Number of Clients

1,119,228

1,260,431

-11.2%


1,119,228

1,260,431

-11.2%

Number of Offices

561

538

4.3%


561

538

4.3%

Total Loan Portfolio* 

6,700.9

6,571.4

2.0%


6,700.9

6,571.4

2.0%

Average Balance (Ps.)

5,987.0

5,213.6

14.8%


5,987.0

5,213.6

14.8%

* Figures in millions of Mexican Pesos.







 

1Q14 EARNINGS CONFERENCE CALL



Day:            

Friday April 11th, 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:    

24795443



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 April 11th and ending at 11:59 pm EST on April 16th, 2014. The replay will be accessible by dialing (855) 859-2056 (U.S./Canada) or 404-537-3406 (international) and entering pass code 24795443.

 

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 March 31th, 2014, FINDEP had a total outstanding loan balance of Ps.6,700.9 million, operated 561 offices in Mexico, Brazil, and the US and had a total labor force of 11,523 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 unaudited and prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. / Figures for 2014 and 2013 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.



RELATED LINKS
http://www.findep.mx

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.