3Q13 Net Income of Ps.65.8 million, a 723.1% YoY growth, and NPL ratio of 6.5%, the lowest in over 5 years(1)

MEXICO CITY, Oct. 22, 2013 /PRNewswire/ --

• Total loan portfolio of Ps.6,808.0 million, a 6.8% decrease versus 3Q12, which continues to reflect the new operating policies implemented in 2012.  It represents a 3.4% growth versus 2Q13, the 3^rd consecutive quarter of consistent sequential growth.   
• Non-performing loans (NPLs) decreased by 35.2% and the NPL ratio reached 6.5% in 3Q13, compared to 9.4% in 3Q12 or 7.3% in 2Q13, principally driven by improvements at Independencia.
• Write offs fell by 26.6% YoY, to Ps.349.3 million in 3Q13.
• NIM after provisions including fees increased to 50.2% in 3Q13, a 508 bps improvement vs.  3Q12; reflecting the success of the new operating policies on improving loan portfolio quality and profitability.
• Net Income of Ps.65.8 million in 3Q13, a 723.1% growth versus 3Q12, and 16.9% vs. 2Q13
• The average lending rate increased by 244 bps to 71.6% in 3Q13 vs. 3Q12; while the funding cost increased by just 10 bps to 10.98% in the same period.
• Equity to total assets of 29.4%, a 136 bps improvement vs. 3Q12.
• ROE in 3Q13 was 8.9%, a 778 bps growth vs. 3Q12.

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 nine-month periods ended September 30^th, 2013.  

Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "I am pleased to report that, for a fourth consecutive quarter, has delivered results which are robust and in line with the Company's current strategy to privilege loan portfolio quality and profitability over size."

"During 3Q13, in addition to accelerating loan portfolio growth by 3.4% on a sequential basis, we had further improvements on most of the Company's profitability, efficiency and credit quality indicators after provisions; which, among other things, allowed us to reach a Net Income of Ps.65.8 million, a 723.1% growth vs. 3Q12 and 16.9% vs. 2Q13, and a NPL ratio of 6.5%, the lowest in FINDEP's history as a public company."

"This solid performance confirms, once again, that the measures taken a year ago to adapt our business model to the new market dynamics and competitive environment have been successful and are delivering the desired results; which allow us to maintain a steady return to historical profitability levels"

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 September 30^th, 2013, FINDEP had a total outstanding loan balance of Ps.6,808.0 million, operated 552 offices in Mexico, Brazil, and the US and had a total labor force of 11,881 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 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.