Credito Real's net income for the 3Q 2015 increased 20.3%

News provided by

Oct 21, 2015, 09:07 ET

MEXICO CITY, Oct. 21, 2015 /PRNewswire/ -- Credito Real, S.A.B. de C.V. SOFOM, E.R. ("Credito Real" or the "Company") (BMV: CREAL*) today announced its financial results for the third quarter of 2015. All figures presented throughout this document are expressed in nominal Mexican pesos (Ps.). All financial information has been prepared in accordance with the guidelines of the National Banking and Securities Commission ("CNBV") and the Mexican Stock Exchange ("BMV").

3Q15 Highlights

Net income increased 20.3% during the 3Q15, reaching Ps. 339.7 million, compared to Ps. 282.3 million during 3Q14.
Financial margin increased 59.8% to Ps. 864.4 million in 3Q15, compared to Ps. 540.9 million recorded during 3Q14.
3Q15 average cost of funds has been reduced to 6.4%, meaning an improvement of 130 bps when compared to 7.7% in 3Q14.
Loan portfolio increased by 21.7% to reach Ps. 16,316.8 million at the end of 3Q15, compared to Ps. 13,409.2 million recorded at the end of 3Q14. The loan book expansion was driven by payroll, small business and used car loans.
Allowances for loan losses increased 8.5% year over year; and the non-performing loan ratio increased from 1.9% to 2.0% at the end of 3Q15 when compared to 3Q14.
The efficiency ratio increased to 34.4% from 25.3% reported in 3Q14; showing the effect of consolidating new businesses such as Kondinero, Drive & Cash and Don Carro.
During October, Credito Real issued Ps. 1,000 million of floating rate notes in the local markets, due in March 2018. This issuance, which was oversubscribed 1.7 times, allowed Credito Real to refinance Ps. 500 million of local debt and will support its loan portfolio expansion.
As recently disclosed, Credito Real acquired 65% of AFS Acceptance; the main purpose of this transaction is to allow Credito Real to enlarge its used-car loan distribution network to serve the Hispanic market in the USA.
Also during the quarter, Institutional Investor Magazine disclosed the results of its survey "2015 Latin America Executive Team", in which Credito Real was ranked as one of the top three Investor Relations Areas and IR Professional in Latin America, within the Financials/Nonbanks sector.

Investor Relations Contact
Jonathan Rangel • IRO www.creal.mx
[email protected] [email protected]
+52 (55) 5228 9753

Israel Becerril • IR                                 IR Agency
[email protected]                 Alejandro Ramirez Arcia
+52 (55) 5340 5200                               [email protected]

Message from the CEO

"Credito Real once again delivered robust growth while maintaining our asset quality. We expanded 21.7% our loan portfolio and our non-performing loans remained at 2.0%. Our net income for the third quarter increased by 20.3% compared to last year while our Return on Average Equity reached 22% in the quarter.

Our distribution network kept supporting our loan portfolio expansion. Drive & Cash reached 58 branches in 18 states. Our group loan operators reached 123 branches with a sales force of 1,013 promoters servicing 148,945 customers. Regarding payroll loans, we keep fostering growth with pensioners and this quarter around 30% of our payroll origination came from this market segment.

In order to keep diversifying our portfolio and to enlarge our used-car loan distribution model in the USA for Hispanics, we recently agreed to acquire a 65% equity stake in "AFS Acceptance", a financial institution with valuable knowhow on used-car dealer networks and licenses in almost all of the USA. We are confident we are gaining access to a robust and scalable platform that will allow us to capture the tremendous potential we see in this business segment. After closing the transaction we estimate used-car loans will represent over 10% of our total portfolio.

Our capital structure remains solid, as a 39% capital ratio strongly supports our loan book expansion. Given this solid capital, we have been able to gradually improve our average funding cost to 6.4%, meaning an improvement of 130 basis points compared to last year. During October, we issued Ps. 1,000 million local notes due in March 2018 at a floating rate; considering our expectations for an increase in reference rates we decided to fix half of this facility at a 6.4% rate. In terms of demand and amount the October issuance was one of the most successful we have accomplished in the local markets, the issuance was 1.7 times oversubscribed which let us see investors' confidence in our Company. We consider our earnings to be resilient to arise interest rates; since as of today we have fixed 53% of our debt at a 7% interest rate.

This quarter our efficiency ratio increased to 34% from 25%, mainly explained by the fact that Kondinero's operations have been consolidated in our financial statements since November 2014. Additionally, we are investing in building a larger distribution network for our used-car businesses; and in a campaign to increase brand awareness.

We are confident to accomplish our 2015 guidance in terms of net income expansion. Our long-term strategy consists of focusing our growth on business opportunities with ample returns. Overall, Credito Real's business model emphasizes on seeking market opportunities in Mexico or abroad for customers traditionally underserved by other financial institutions."

Results of Operation

Summary	3Q'15	3Q'14	% Var	YTD'15	YTD'14 recurrent	Non-recurr. item 2014	% Var with Non-recurr. item	YTD'14	% Var	2014	2013	% Var
Ps. Millions
Interest Income	1,099.7	759.6	44.8%	3,018.9	2,268.6	63.1	33.1%	2,331.8	29.5%	3,327.1	2,724.5	22.1%
Net income	339.7	282.3	20.3%	999.4	836.0	43.5	19.6%	879.5	13.6%	1,224.8	1,003.6	22.0%
Earnings per share	0.9	0.8	14.6%	2.5	2.2		13.9%	2.4	8.2%	3.3	2.7	21.0%

Total portfolio	16,316.8	13,409.2	21.7%							13,804.9	10,423.5	32.4%
Capitalization	38.8%	37.6%	1.2%							38.8%	41.8%	(3.0)%
ROAA	6.0%	6.6%	(0.5)%	6.2%	6.7%		(0.5)	7.1%	(0.8)%	6.9%	7.7%	(0.8)%
ROAE	22.1%	23.0%	(1.0)%	22.8%	23.7%		(0.9)	24.9%	(2.1)%	24.7%	24.5%	0.2%

Interest Income during the 3Q15 reached Ps. 1,099.7 million, implying an increase of 44.8% compared with the Ps. 759.6 reported in the 3Q14. The change was mainly due to the growth observed in the loan portfolio with higher yield products. This led to an increase in the average yield of the portfolio quarter over quarter as well as year over year. Year-to-date (YTD) September interest income reached Ps. 3,018.9 million in 2015, increasing 33.1% when compared to the recurrent Ps. 2,268.6 million of the same period of 2014.

3Q'15 Interest Income Ps. 1,099.7 million 3Q'14 Interest Income Ps. 759.6 million

	3T 2015	3T 2014
Payroll	79.0%	85.1%
Durable Goods	4.0%	7.9%
Small Bussines	5.5%	5.0%
Groups	0.6%	1.2%
Used Cars	10.8%	0.8%
Total	100.0%	100.0%

Interest expense increased 7.6% in 3Q15 to reach Ps. 235.3 million, compared to Ps. 218.7 million posted during 3Q14, while company's debt increased 33.2% year over year. This shows a 130 bps improvement year over year in the average funding cost, mainly explained by better credit conditions. YTD September interest expense reached Ps. 700.2 million in 2015, an increase of 5.5% when compared to the Ps. 663.5 million of September 2014.

Financial margin increased 59.8% reaching Ps. 864.4 million, from Ps. 540.9 million posted during 3Q14, mainly driven by growth in interest income and improvements in our costs of funding. Similarly, YTD September financial margin rose to Ps. 2,318.7 million in 2015 compared to the recurrent Ps. 1,605.1 million posted in 2014, reaching a 44.5% growth.

Provisions for loan losses reached Ps. 98.8 million during 3Q15, 86.3% higher than the Ps. 53.0 million recorded during 3Q14, driven by loan portfolio expansion. Cost of risk increased from 1.6% to 2.4% in the quarter. Allowances for loan losses increased to Ps. 449.6 million or 8.5% year over year, which represented 135.7% of non-performing loans.

Administrative and operating expenses reached Ps. 283.4 million during 3Q15, showing an increase of 117.6% when compared to the Ps. 130.2 million recorded during 3Q14. YTD September administrative and operating expenses increased 91.2% reaching Ps. 742.2 in 2015. The increase is mainly driven by the consolidation of Kondinero's expenses. Additionally, during this quarter Credito Real decided to make a larger investment to increase brand awareness and to foster its used-car distribution network with Drive & Cash and Don Carro brands. We estimate the consolidated SG&A expense will amount Ps. 1 billion by the end of 2015.

Participation in the results of associates and non-controlling participation reached Ps. 15.1 million in 3Q15, compared to Ps. 19.4 million recorded during 3Q14. The YTD September figure was Ps. 50.1 million in 2015 compared to Ps. 63.9 million posted in 2014, decreasing 21.6%. The decrease is mainly explained by the effect of consolidating Kondinero, which we previously recognized under the equity method in this account.

Net income increased 20.3% year over year, reaching Ps. 339.7 million during the quarter, compared to Ps. 282.3 million posted during 3Q14. YTD September net income increased 19.6% without the nonrecurring item of 2014, reaching Ps. 999.4 million in 2015. As Credito Real has consolidated some distributors, the effective tax rate has increased and is expected to stabilize around 25%. The following graph illustrates with a dotted line the effect of non-recurring items in the 2014 net income.

Net Income Growth (million pesos)

*3Q'14*	*3Q'15*	*Var %*	2012	*Var %*	2013	*Var %*	2014
282.3	339.7	20%	614.1	63%	1,003.60	22%	1,224.80
*YTD'14*	*YTD'15*	*Var %*
836.0	999.4	20 %

Balance Sheet

Total assets accounted for Ps. 23,397.5 million at the end of 3Q15, an increase of 32.6% over the Ps. 17,647.2 million registered at the end of 3Q14. The increase was mainly driven by loan portfolio expansion, the recognition of the mark-to-market of securities and derivatives transactions and the recognition of Kondinero's assets in Credito Real's balance sheet.

Total loan portfolio reached Ps. 16,316.8 million at the end of 3Q15, an increase of 21.7% compared to Ps. 13,409.2 million at the end of 3Q14. Credito Real reached double-digit growth in four of its business segments and in the case of used car loans even higher growth. The efforts carried out by our payroll distributors, used cars partners and our small business loan distributor continue to deliver loan portfolio growth.

Non-performing loan portfolio as a percentage of the portfolio was 2.0% as of 3Q15, equivalent to Ps. 331.4 million, compared to a 1.9% ratio or Ps. 248.1 million as of 3Q14. The NPL is in line with the 2% to 3% long term objective, as the Company achieves larger diversification of its loan portfolio. The Company consistently applies its credit standards and collection procedures to maintain its non-performing loans ratio at such level.

Allowance for loan losses as of 3Q15 was Ps. 449.6 million or 135.7% coverage ratio (allowance for loan losses as a percentage of total past-due loan portfolio), compared to Ps. 414.4 million or 167.0% coverage ratio reported in 3Q14. The change in allowance for loan losses reflects effective collection efforts by our distributors in all our business lines and greater certainty in the collection process enhanced by the TESOFE centralized payroll collection.

Other accounts receivable decreased to Ps. 1,765.3 million as of 3Q15, which compares to Ps. 1,907.1 million posted as of 3Q14. This account includes a portion of income paid in advance to payroll distributors in accordance with the agreements.

Total liabilities reached Ps. 17,065.9 million, a 34.9% increase from the recurrent Ps. 12,648.6 million posted in 3Q14. Total debt reached Ps. 15,391.6 million as of 3Q15 compared to the recurrent Ps. 11,616.4 million as of 3Q14.

Senior notes and local notes reached Ps. 10,165.1 million as of 3Q15, representing an increase of 31.0% compared to the recurrent Ps. 7,762.4 recorded as of 3Q14.
Bank loans as of 3Q15 reached Ps. 5,226.5 million, an increase of 35.6% compared to Ps. 3,853.9 million recorded as of 3Q14.

	3Q'14	3Q'15
Local Market	17%	21%	Debt Amortization Schedule 3Q'15
			Year	Ps Million	%
Bank Lines	33%	35%	2015	2,400.9	15.6%
			2016	4,664.4	30.3%
144A/RegS	49%	44%	2017	1,067.9	6.9%
			2018-2019	7,258.4	47.2%
Total	11,553.2	15,391.6	Total	15,391.6	100.0%

Note: The percentage does not include mark-to-market FX effect.

Stockholders' Equity increased Ps. 1,333.0 million when compared to the recurrent 3Q14, and totaled Ps. 6,331.6 million at the end of 3Q15, a 26.7% year-over-year increase. The earnings growth is the main driver for our Stockholders' Equity increase. As of 3Q15 the company has repurchased 1,329,288 shares.

Financial ratios

Our efficiency ratio increased to 34.4% during 3Q15 compared to the 25.3% ratio obtained in 3Q14. The increase is mainly driven by the consolidation of Kondinero in Credito Real's results and investments to increase brand awareness and strengthen our used-car distribution network.

During 3Q15, Credito Real experienced a Return on Average Assets ("ROAA") of 6.0%, compared to 6.6% in 3Q14. The ROAA reflects the effect of mark-to-market of securities and derivatives transactions and the recognition of Kondinero's assets. Our Return on Average Equity ("ROAE") was 22.1% in 3Q15 compared to 23.0% in 3Q14.

Capitalization index increased to 38.8% as of 3Q15, compared to 37.6% observed in 3Q14. Credito Real has one of the highest capitalization ratios within the financial sector.

The above mentioned non-recurring effects are shown in the following financial ratio graphs highlighted with a dotted line.

Efficiency
*3Q'14*	*3Q'15*	2013	2014
25.3%	34.4%	25.1%	26.8%
YTD'14	YTD'15
24.3%	33.7%


Capitalization
*3Q'14*	*3Q'15*	2013	2014
37.6%	38.8%	41.8%	38.8%
YTD'14	YTD'15
37.6%	38.8%


ROOA
*3Q'14*	*3Q'15*	2013	2014
6.6%	6.0%	7.7%	6.8%
YTD'14	YTD'15
7.1%	6.2%


ROAE
*3Q'14*	*3Q'15*	2013	2014
23.0%	22.1%	24.5%	24.3%
YTD'14	YTD'15
24.9%	22.8

Summary of Operations

Summary	3Q'15					3Q'14
	Portfolio (Ps million)	%	Customers	NPL's	Average Loan (Ps)		Portfolio (Ps million)	%	Customers	NPL's	Average Loan (Ps)	Var % Portfolio
Payroll	$12,528.7	76.8%	332,992	1.8%	$37,625		$10,367.8	77.3%	343,915	1.6%	$30,146	20.8%
Durable Goods	$1,012.7	6.2%	73,385	2.1%	$13,800		$1,206.8	9.0%	83,075	2.0%	$14,526	-16.1%
Small Business	$1,919.9	11.8%	569	3.9%	$3,374,238		$1,248.1	9.3%	275	4.6%	$4,538,592	53.8%
Groups *	$261.9	1.6%	148,945	0.0%	$1,758		$353.1	2.6%	91,007	0.3%	$3,880	-25.8%
Used Cars	$593.5	3.6%	5,706	0.6%	$104,018		$233.4	1.7%	2,707	0.7%	$86,232	154.3%
Total	$16,316.8	100%	561,597	2.0%	$29,054		$13,409.2	100%	520,979	1.9%	$25,739	21.7%

Group loan Operators

Distributors

$501.1

3.1%

148,945

0.8%

$3,364

$302.6

2.3%

91,004

2.0%

$3,325

65.6%

* The information about group loan operators is provided below.

Summary
	3Q'15 Origination	%	3Q'14 Origination	%	Var %	YTD 2015 Origination	%	YTD 2014 Origination	%	Var %
Payroll	$1,122.6	32.3%	$840.6	34.9%	33.6%	$2,933.7	33.1%	$2,225.3	34.4%	31.8%
Durable Goods	$264.3	7.6%	$308.9	12.8%	-14.4%	$685.5	7.7%	$964.8	14.9%	-28.9%
Small Business	$1,069.6	30.8%	$629.8	26.1%	69.8%	$2,488.7	28.1%	$1,737.1	26.9%	43.3%
Groups	$827.3	23.8%	$510.6	21.2%	62.0%	$2,221.4	25.1%	$1,335.5	20.6%	66.3%
Used Cars	$193.9	5.6%	$120.0	5.0%	61.6%	$528.2	6.0%	$205.0	3.2%	157.7%
Total	$3,477.7	100%	$2,409.8	100%	44.3%	$8,857.4	100%	$6,467.7	100%	36.9%

Note: Origination includes information of strategic alliances and joint ventures.

Credito Real Payroll loan portfolio rose to Ps. 12,528.7 million, an increase of 20.8% when compared to Ps. 10,367.8 million recorded at the end of 3Q14. Nearly 85.3% of payroll loans originated during 3Q15 came from the three main distributors in which we own equity. During 3Q15 loan origination reached Ps. 1,122.6 million, showing a substantial increase of 33.6% against 3Q14. Overall, we continue to observe a healthy portfolio performance. The non-performing loans reached 1.8% of the portfolio.

We are diversifying our payroll portfolio in the pensioners segment, an underserved market potential size of 3 million pensioners potential to benefit from. As of 3Q15 it represents 8% of our payroll loan book. Within the Education sector we continue to benefit from centralized collection of the Federal Treasury ("TESOFE"), which ensures a more efficient and standardized collection process. Regarding the government-sponsored program "Bansefi" to refinance SNTE teachers' loans, during the quarter no prepayments were received; since its inception in November 2013, represents less than 1% of our Payroll portfolio.

The following charts show a breakdown by sector and region of Credito Real's payroll portfolio.

3Q'15 payroll portfolio per sector

Federal Education	46.6%
Government	13.3%
IMSS	9.1%
Health	14.1%
State Education	6.8%
Education Ministry	3.3%
Non-centralized Agencies	3.0%
Pemex	1.6%
Other	2.3%

3Q'15 payroll portfolio per region

OAXACA	13.4%
GUERRERO	8.4%
DISTRITO FEDERAL	10.0%
ESTADO DE MEXICO	7.2%
CHIAPAS	6.1%
VERACRUZ	4.2%
GUANAJUATO	2.2%
JALISCO	2.4%
SAN LUIS POTOSI	2.5%
TABASCO	2.7%
HIDALGO	2.2%
TLAXCALA	1.4%
MICHOACAN	2.0%
CHIHUAHUA	1.4%
TAMAULIPAS	1.6%
OTHERS	1.2%

Credito Real Durable Goods loan portfolio reached Ps. 1,012.7 million, a decrease of 16.1% over the Ps. 1,206.8 million recorded at the end of 3Q14. Non-performing loans of 2.1% in 3Q15 were in line with the 2.0% experienced in 3Q14. During 3Q15 loan origination reached Ps. 264.3 million, showing a decrease of 14.4% against last year. We attribute this decline to a decreasing number of distributors in our network, weaker credit consumption in Mexico and tight policies in our credit analysis.

Credito Real Small Business loan portfolio totaled Ps. 1,919.9 million as of 3Q15, which represents a 53.8% increase compared to 3Q14. Small business loan origination reached Ps. 1,069.6 million in 3Q15 compared to Ps. 629.8 million in 3Q14, a 69.8% increase year-over-year. The increase in origination is again explained by strong sale efforts performed by Fondo H. The non-performing loan ratio reached 3.9%, this figure reflects a seasonality effect; however it shows an improvement when compared to last year's third quarter 4.6% NPL.

Credito Real Group Loans portfolio of funding provided to distributors totaled Ps. 261.9 million at the end of 3Q15, a decrease of 25.8% compared to Ps. 353.1 million reached at the end of 3Q14. Credito Real's balance sheet only registers the funding provided to its partners Contigo and SomosUno, in which it has minority equity participation. The loan portfolio of those partners reached Ps. 501.1 million increasing 65.6% year over year. Group loan origination reached Ps. 827.3 million, showing an increase of 62.0% when compared to 3Q14. Our group loan partners keep growing in terms of customers maintaining strong portfolio performance metrics. As of 3Q15, our group loan network extends to 1,013 promoters serving 148,945 customers. Non-performing loans to group loan distributors funding was 0.0%, and the NPL of our group loan distributors portfolio was 0.8% in the quarter compared to 2.0% in 3Q14.

Credito Real Used Car Loans portfolio totaled Ps. 593.5 million at the end of 3Q15, or 154.3% higher than the amount reported for 3Q14. Origination for the quarter amounted to Ps. 193.9 million while the non-performing loan ratio was 0.6%, compared to 0.7% last year. The portfolio increased mainly driven by the expansion of Drive & Cash as well as Don Carro's distribution network. Drive & Cash reached 58 branches in 18 states of Mexico by the end of the quarter.

As discussed above, our Don Carro business to serve Hispanics in Texas rapidly reached its profitability point during 2015. In order to scale the business up we decided to invest in the dealership platform of AFS Acceptance to extend our network to other states within the USA.

Analyst Coverage

Actinver Casa de Bolsa S.A. de C.V. (Fixed Income)
Bank of America Merryll Lynch Global Research (Equity &Fixed Income)
Barclays Capital Casa de Bolsa, S.A. de C.V. (Equity)
Deutsche Securities, S.A. de C.V., Casa de Bolsa (Equity)
Interacciones Casa de Bolsa S.A. de C.V. (Equity)
Intercam Casa de Bolsa S.A. de C.V, Intercam Grupo Financiero (Equity)
IXE Casa de Bolsa S.A. de C.V, Grupo Financiero Banorte (Fixed Income & Equity)
J.P. Morgan Securities, LLC (Fixed Income)
Punto Casa de Bolsa S.A. de C.V. (Equity)
Ve por mas Casa de Bolsa, S.A. de C.V. (Equity)

About Credito Real
Credito Real is a leading financial institution in Mexico, with a focus on consumer lending with a diversified and scalable business platform oriented primarily on the following types of loans: payroll loans, durable goods loans, small business loans, group loans and used car loans. Credito Real offers products mainly to the low and middle income segments of the population, which historically have been underserved by other financial institutions.

Credito Real shares are listed on the Mexican Stock Exchange under the ticker symbol and Series "CREAL*". (Bloomberg identification number is CREAL* MM)

This document may contain certain forward-looking statements. These statements are non-historical facts, and they are based on the current vision of the Management of Credito Real, S.A.B. de C.V., SOFOM, E.R. for future economic circumstances, the conditions of the industry, the performance of the Company and its financial results. The terms "anticipated", "believe", "estimate", "expect", "plan" and other similar terms related to the Company, are solely intended to identify estimates or predictions. The statements relating to the declaration or the payment of dividends, the implementation of the main operational and financial strategies and plans of investment of equity, the direction of future operations and the factors or trends that affect the financial condition, the liquidity or the operating results of the Company are examples of such statements. Such statements reflect the current expectations of the management and are subject to various risks and uncertainties. There is no guarantee that the expected events, trends or results will occur. The statements are based on several suppositions and factors, including economic general conditions and market conditions, industry conditions and various factors of operation. Any change in such suppositions or factors may cause the actual results to differ from expectations.

Investor Relations contact

Phones:	+52 (55) 53405200, +52 (55) 52289753
E-mail:	[email protected]
	Jonathan Rangel (IRO) [email protected]
	Israel Becerril (IR) [email protected]
Web Page:	www.creal.mx
Address:	Insurgentes Sur No. 730, 20th Floor, Col. del Valle Norte, Mexico City, 03103

Appendix

Profit & Loss
Ps. Millions	3Q'15	3Q'14	Var	% Var	YTD'15	YTD'14 recurr.	Non-recur. item'14	% Var w. Non-recurr. item	YTD'14	% Var	2014	2013	Var	Var%

Interest Income	1,099.7	759.6	340.2	44.8%	3,018.9	2,268.6	63.1	33.1%	2,331.8	29.5%	3,327.1	2,724.5	602.6	22.1%
Interest Expense	(235.3)	(218.7)	16.6	7.6%	(700.2)	(663.5)		5.5%	(663.5)	5.5%	(882.3)	(723.1)	159.1	22.0%
Financial Margin	864.4	540.9	323.5	59.8%	2,318.7	1,605.1	63.1	44.5%	1,668.2	39.0%	2,444.8	2,001.4	443.5	22.2%

Provision for Loan Losses	(98.8)	(53.0)	45.7	86.3%	(235.1)	(173.6)		35.5%	(173.6)	35.5%	(264.5)	(404.5)	(139.9)	(34.6)%
Financial Margin adjusted for Credit Risks	765.6	487.9	277.8	56.9%	2,083.6	1,431.5	63.1	45.6%	1,494.7	39.4%	2,180.3	1,596.9	583.4	36.5%

Commissions and fees paid	(40.7)	(26.8)	14.0	52.2%	(114.3)	(69.3)		64.9%	(69.3)	64.9%	(99.0)	(69.7)	29.3	42.1%
Other income from operations	5.2	5.4	(0.2)	(4.6)%	21.1	21.5		(1.8)%	21.5	(1.8)%	23.7	10.1	13.6	134.4%

Administrative and promotion expenses	(283.4)	(130.2)	153.2	117.6%	(742.2)	(388.1)		91.2%	(388.1)	91.2%	(629.6)	(484.1)	145.5	30.1%
Operating result	446.7	336.3	110.4	32.8%	1,248.2	995.6	63.1	25.4%	1,058.8	17.9%	1,475.4	1,053.3	422.2	40.1%

Income taxes	(122.1)	(73.3)	48.8	66.5%					(243.2)	22.9%	(334.8)	(241.6)	93.2	38.6%
					(298.9)	(223.6)	(19.7)	33.7%

Income before participation in the results of subsidiaries	324.5	263.0	61.6	23.4%	949.3	772.1	43.5	23.0%	815.5	16.4%	1,140.7	811.7	329.0	40.5%

Participation in the results of subsidiaries and associates, and non-controlling participation	15.1	19.4	(4.3)	(22.0)%	50.1	63.9		(21.6)%	63.9	(21.6)%	84.1	191.9	(107.8)	(56.2)%
Net Income	339.7	282.3	57.3	20.3%	999.4	836.0	43.5	19.6%	879.5	13.6%	1,224.8	1,003.6	221.2	22.0%

Appendix

Balance Sheet
Ps. Million	3Q'15	3Q'14	Var	% Var	'14 recurr.	Non-recur. Item'14	%Var w. Non-rec item	2014	2013	Var%
Cash and cash equivalents	428.5	97.1	331.3	341.1%	97.1		341.1%	53.8	126.9	(57.6)%
Investments in securities	276.5	821.6	(545.2)	(66.4)%	821.6		(66.4)%	1,251.2	646.2	93.6%
Securities and derivatives transactions	1,938.3	197.1	1,741.2	883.2%	197.1		883.2%	950.3	230.1	313.0%
Performing loan portfolio
Commercial loans	15,985.4	13,161.1	2,824.3	21.5%	13,161.1		21.5%	13,544.3	10,265.0	31.9%
Total performing loan portfolio	15,985.4	13,161.1	2,824.3	21.5%	13,161.1		21.5%	13,544.3	10,265.0	31.9%
Non-performing loan portfolio
Commercial loans	331.4	248.1	83.2	33.5%	248.1		33.5%	260.6	158.5	64.5%
Total non-performing loan portfolio	331.4	248.1	83.2	33.5%	248.1		33.5%	260.6	158.5	64.5%
Loan portfolio	16,316.8	13,409.2	2,907.5	21.7%	13,409.2		21.7%	13,804.9	10,423.5	32.4%
Less: Allowance for loan losses	449.6	414.4	35.2	8.5%	414.4		8.5%	420.1	203.2	106.7%
Loan portfolio (net)	15,867.2	12,994.8	2,872.3	22.1%	12,994.8		22.1%	13,384.8	10,220.3	31.0%
Other accounts receivable (net)	1,765.3	1,907.1	(141.7)	(7.4)%	1,907.1		(7.4)%	1,156.2	2,390.4	(51.6)%
Property, furniture and fixtures (net)	118.5	34.3	84.2	245.4%	34.3		245.4%	85.5	22.9	273.1%
Long-term investments in shares	812.4	792.7	19.7	2.5%	792.7		2.5%	859.0	786.0	9.3%
Other assets
Debt insurance costs, intangibles and others	2,190.8	802.4	1,388.4	173.0%	802.4		173.0%	2,174.8	677.2	221.2%
Total assets	23,397.5	17,647.2	5,750.3	32.6%	17,647.2		32.6%	19,915.5	15,100.0	31.9%
Notes payable (certificados bursátiles)	3,009.5	2,014.1	995.4	49.4%	2,014.1		49.4%	2,571.9	3,041.8	(15.4)%
Senior notes payable	7,155.6	5,685.2	1,470.4	25.9%	5,748.4	(63.1)	24.5%	6,561.0	2,829.6	131.9%
Bank loans and borrowings from other entities
Short-term	1,096.6	2,047.4	(950.8)	(46.4)%	2,047.4		(46.4)%	1,120.3	1,950.1	(42.6)%
Long-term	4,129.9	1,806.5	2,323.4	128.6%	1,806.5		128.6%	3,140.8	2,130.8	47.4%
Total Bank Loans	5,226.5	3,853.9	1,372.5	35.6%	3,853.9		35.6%	4,261.0	4,080.9	4.4%
Total Debt	15,391.6	11,553.2	3,838.3	33.2%	11,616.4	(63.1)	32.5%	13,393.9	9,952.2	34.6%
Securities and derivatives transactions	-	-	-	-	-		-	-	-	-
Income taxes payable	30.6	8.1	22.5	279.5%	8.1		279.5%	51.9	14.6	256.7%
Other accounts payable	1,643.7	1,043.9	599.9	57.5%	1,024.2	19.7	60.5%	1,112.4	780.3	42.6%
Total liabilities	17,065.9	12,605.2	4,460.7	35.4%	12,648.6	(43.5)	34.9%	14,558.3	10,747.1	35.5%
Stockholders' equity
Capital stock	2,109.2	2,056.4	52.7	2.6%	2,056.4		2.6%	2,135.0	2,016.2	5.9%
Earned capital:
Accumulated results from prior years	3,191.4	2,087.1	1,104.3	52.9%	2,087.1		52.9%	1,977.4	1,326.1	49.1%
Result from valuation of cash flow hedges, net	21.8	8.1	13.7	170.0%	8.1		170.0%	5.6	7.0	(20.2)%
Controlling position in subsidiaries	9.9	11.0	(1.1)	(10.3)%	11.0		(10.3)%	14.5	-	-
Net income	999.4	879.5	120.0	13.6%	836.0	43.5	19.6%	1,224.8	1,003.6	22.0%
Total stockholders' equity	6,331.6	5,042.0	1,289.6	25.6%	4,998.6	43.5	26.7%	5,357.2	4,352.9	23.1%
Total Liabilities and Stockholders' equity	23,397.5	17,647.2	5,750.3	32.6%	17,647.2		32.6%	19,915.5	15,100.0	31.9%

Appendix

Financial Ratios
	3Q'15	3Q'14	Var	YTD'15	YTD'14 recurr.	Var	YTD'14	Var	2014	2013	Var

Yield	28.3%	23.5%	4.8%	27.2%	25.5%	1.7%	26.3%	0.9%	26.2%	31.1%	(4.9)%
Return on Average Loan Portfolio	8.7%	8.7%	0.0%	9.0%	9.4%	(0.4)%	9.9%	(0.9)%	9.7%	11.5%	(1.8)%
ROAE: Return on average stockholders' equity	22.1%	23.0%	(1.0)%	22.8%	23.7%	(0.9)%	24.9%	(2.1)%	24.7%	24.5%	0.2%
Debt to Equity Ratio	2.4	2.3	0.1	2.4	2.3	0.1	2.3	0.1	2.5	2.3	0.2
Average cost of funds	6.4%	7.7%	(1.4)%	6.6%	8.1%	(1.5)%	8.1%	(1.5)%	7.5%	8.7%	(1.2)%
Efficiency ratio	34.4%	25.3%	9.1%	33.7%	25.3%	8.4%	24.3%	9.4%	26.8%	25.1%	1.8%
Capitalization Ratio	38.8%	37.6%	1.2%	38.8%	37.3%	1.5%	37.6%	1.2%	38.8%	41.8%	(3.0)%

Provisions for loan losses as a percentage of total loan portfolio	2.4%	1.6%	0.8%	1.9%	1.7%	0.2%	1.7%	0.2%	1.9%	3.9%	(2.0)%
Allowance for loan losses as a percentage of total past-due loan portfolio	135.7%	167.0%	(31.3)%	135.7%	167.0%	(31.3)%	167.0%	(31.3)%	161.2%	128.2%	33.0%
Total past-due loan portfolio as a percentage of total loan portfolio	2.0%	1.9%	0.2%	2.0%	1.9%	0.2%	1.9%	0.2%	1.9%	1.5%	0.4%