Financiera Independencia Reports 1Q12 Net Income of Ps.34.2 Million and Loan Portfolio Growth of 12.3%

MEXICO CITY, April 26, 2012 /PRNewswire/ --

• Total loan portfolio reached Ps.7,367.8 million, a 12.3% year-over-year increase, driven by growth across all business units
• Independencia's individual new loan origination increased to Ps.1,241.3 million, up 43.1% YoY and 2.8% QoQ
• Non-performing loans ratio increased to 9.8% in 1Q12 from 9.4% in 4Q11 and 8.2% in 1Q11
• NIM after provisions including fees increased to 43.9% in 1Q12 from 43.7% in 1Q11
• Provisions for loan losses rose to 42.7% of financial margin in 1Q12, from 42.3% in 4Q11 and 29.6% in 1Q11
• Funding cost decreased to 10.90% in 1Q12 from 11.63% in 1Q11 and 10.98% in 4Q11
• Net income was down 62.0% YoY, and up 69.6% on a sequential basis
• Equity to total assets of 28.6% compared to 30.0% in 1Q11 and 27.7% in 4Q11
• ROE in 1Q12 decreased to 4.4% from 12.1% in 1Q11.

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-month period ended March 31, 2012. Net income for 1Q12 declined 62.0% YoY, but increased 69.6% on a sequential basis to Ps.34.2 million.

Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, "We are enthusiastic that our efforts to implement a series of strategies designed to further strengthen our operations are showing positive results. This is evident in the pick-up in loan growth at Independencia, our traditional business, and the main growth driver this quarter. Loan origination in our traditional business was up 43% this quarter, the highest rate in the last four years, reaching historical levels. These figures confirm the reversal of the deceleration trend in loan portfolio that began at the end of 2009."

"Looking ahead, we remain focused on reducing the level of provisions and NPLs through our well established strategy. We expect that our actions, together with the consolidation of a more diversified business, will allow us to maximize the profitability of our Company," concluded Mr. Gonzalez.

_________

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 recent acquisitions of Finsol, AEF and AFI

1Q12 CONSOLIDATED RESULTS

Unaudited results for 1Q12 include the effect of the consolidation of the following acquisitions: Apoyo Economico Familiar ("AEF"), one of the largest unsecured personal lending institutions in Mexico, on March 15, 2011; Apoyo Financiero Inc. ("AFI"), a microfinance company primarily serving the unbanked Hispanic community in San Francisco, California, on February 28, 2011; and Financiera Finsol, one of the largest group lending microfinance institutions in Mexico, and Instituto Finsol Brazil (collectively, "Finsol") on February 19, 2010.

Financial Margin after Provision for Loan Losses

Financial margin after provision for loan losses for 1Q12 increased 10.1% year-on-year to Ps.610.1 million. This is principally explained by the following:

Interest Income

Interest income for the quarter increased 32.7% year-on-year to Ps.1,260.3 million, principally as a result of the Ps.315.0 million, or 33.5%, increase in interest income on loans. The total loan portfolio increased 12.3% during the period, driven by a 7.2% growth in the number of clients and a 4.8% increase in the average balance per client. The increase in the number of clients was driven by growth across all business units.  The higher average balance per client reflects Finsol's larger share of the total loan portfolio and the considerably higher average balance per client at AEF.

The average balance per client increased to Ps.4,566 in 1Q12 from Ps.4,358 in 1Q11. The average lending rate(1) of the total loan portfolio rose to 68.5% in 1Q12 from 61.6% in 1Q11 and from 67.0% in 4Q11. The complete consolidation of AEF into the Company's results and the higher average lending rate in Finsol Mexico were the main reasons behind this increase.  Excluding AEF, the average lending rate was 66.0%.

Findep's total informal sector loans increased 16.9% year-on-year to Ps.3,790.8 million in 1Q12, representing 51.5% of the loan portfolio. Growth reflects the 14.7% increase in Finsol's group loans and the 21.2% increase in AEF's informal sector loan portfolio. Independencia's individual loans to the informal sector increased by Ps.281.7 million, or 17.7%, year-on-year driven by growth of 24.0% and 12.1% in the CrediPopular and CrediMama products, respectively. This more than offset the 24.9% decline in the CrediConstruye product. The share of non-Independencia loans to the informal sector increased to 26.1% of Findep's total loans in 1Q12 from 25.2% in 1Q11, reflecting the acquisitions of Finsol and AEF which have contributed to further diversify the Company's business.

The Company's total formal sector loans represented 48.5% of the total loan portfolio and increased by 7.8% to Ps.3,577.0 million in 1Q12, from Ps.3,319.4 million in 1Q11. Growth was mainly driven by the CrediInmediato loan product. The AEF and AFI acquisitions also contributed to the year-on-year increase. The CrediInmediato loan portfolio, a revolving line of credit that targets the formal sector, increased year-on-year by Ps.176.7 million, or 6.3%, to Ps.2,994.3 million. However, this product represented a lower share of Findep's total loan portfolio, accounting for 40.6% of total loans in 1Q12 from 42.9% in 1Q11 and 40.9% in 4Q11.  On a sequential basis, the number of CrediInmediato clients decreased 1.2% and the loan portfolio 0.4%. CrediInmediato's average balance per contract was Ps.4,207 in 1Q12, up 5.5% year-on-year and 0.8% quarter-on-quarter.  

Finsol's total loans reached Ps.1,467.5 million in 1Q12, a 14.7% increase from 1Q11 and a 7.9% decrease from the Ps.1,592.9 million reported in 4Q11. During 1Q12, a total of Ps.1,106.9 million loans were originated at Finsol Mexico and Ps.286.4 million at Finsol Brazil, representing sequential declines of 9.6% and 24.5%, respectively, reflecting the seasonality of the business. Finsol loans represented 19.9% of the total loan portfolio, down from the 21.7% reported in 4Q11 and a slight increase from the 19.5% posted in 1Q11.

Apoyo Economico Familiar total loan portfolio was Ps.985.3 million in 1Q12, a 4.5% sequential increase and up 17.0% from the Ps.842.3 million in 1Q11.  Apoyo Financiero Inc.'s total loan portfolio was Ps.50.0 million in 1Q12, a 57.5% increase from the Ps.31.8 million at the date of the acquisition and represented 0.7% of the total consolidated portfolio.

Table 1: Financial Margin*
		1Q12	4Q11	1Q11	QoQ %	YoY %
Interest Income		1,260.3	1,203.3	949.8	4.7%	32.7%
	Interest on Loans	1,254.9	1,199.1	939.9	4.7%	33.5%
	Interest from Investment in Securities	5.4	4.1	9.9	30.8%	-45.7%
Interest Expense		194.9	192.6	162.5	1.2%	19.9%
Financial Margin		1,065.4	1,010.6	787.3	5.4%	35.3%
Provision for Loan Losses		455.3	427.7	233.2	6.5%	95.2%
Financial Margin After Provision for Loan Losses		610.1	582.9	554.0	4.7%	10.1%
* Figures in millions of Mexican Pesos

Table 2: Loan Portfolio, Number of Clients & Average Balance
		1Q12	4Q11	1Q11	QoQ %	YoY %
Loan Portfolio (million Ps.)		7,367.8	7,347.7	6,561.7	0.3%	12.3%
Number of Clients		1,613,681	1,617,170	1,505,614	-0.2%	7.2%
Average Balance (Ps.)		4,565.9	4,543.5	4,358.2	0.5%	4.8%

Table 3: Number of Clients by Product Type
		1Q12	% of Total	4Q11	% of Total	1Q11	% of Total	QoQ % Change	YoY % Change
Formal Sector Loans		711,717	44.1%	720,244	44.5%	706,564	46.9%	-1.2%	0.7%
- CrediInmediato*		711,717	44.1%	720,244	44.5%	706,564	46.9%	-1.2%	0.7%
Informal Sector Loans		481,208	29.8%	470,865	29.1%	429,673	28.5%	2.2%	12.0%
- CrediPopular		399,357	24.7%	383,493	23.7%	334,305	22.2%	4.1%	19.5%
- CrediMama		53,192	3.3%	55,459	3.4%	49,870	3.3%	-4.1%	6.7%
- CrediConstruye		28,659	1.8%	31,913	2.0%	45,498	3.0%	-10.2%	-37.0%
Finsol Loans		289,524	17.9%	298,993	18.5%	253,491	16.8%	-3.2%	14.2%
- Finsol Mexico		235,548	14.6%	243,140	15.0%	212,247	14.1%	-3.1%	11.0%
- Finsol Brasil		53,976	3.3%	55,853	3.5%	41,244	2.7%	-3.4%	30.9%
Apoyo Economico Familiar Loans		129,803	8.0%	125,685	7.8%	114,870	7.6%	3.3%	13.0%
Apoyo Financiero Inc Loans		1,429	0.1%	1,383	0.1%	1,016	0.1%	3.3%	40.6%
Total Number of Loans		1,613,681	100.0%	1,617,170	100.0%	1,505,614	100.0%	-0.2%	7.2%
*Includes  2,444 clients of payroll lending product
Table 4: Total Loan Portfolio by Product Type*
		1Q12	% of Total	4Q11	% of Total	1Q11	% of Total	QoQ % Change	YoY % Change
Formal Sector Loan Portfolio		2,994.3	40.6%	3,007.5	40.9%	2,817.7	42.9%	-0.4%	6.3%
- CrediInmediato**		2,994.3	40.6%	3,007.5	40.9%	2,817.7	42.9%	-0.4%	6.3%
Informal Sector Loan Portfolio		1,870.7	25.4%	1,750.3	23.8%	1,588.9	24.2%	6.9%	17.7%
- CrediPopular		1,576.9	21.4%	1,454.2	19.8%	1,271.6	19.4%	8.4%	24.0%
- CrediMama		168.1	2.3%	169.1	2.3%	149.9	2.3%	-0.6%	12.1%
- CrediConstruye		125.7	1.7%	126.9	1.7%	167.5	2.6%	-1.0%	-24.9%
Finsol Loan Portfolio		1,467.5	19.9%	1,592.9	21.7%	1,280.0	19.5%	-7.9%	14.7%
- Finsol Mexico		999.8	13.6%	1,049.1	14.3%	876.9	13.4%	-4.7%	14.0%
- Finsol Brasil		467.7	6.3%	543.7	7.4%	403.1	6.1%	-14.0%	16.0%
Apoyo Economico Familiar Loans		985.3	13.4%	943.0	12.8%	842.3	12.8%	4.5%	17.0%
Apoyo Financiero Inc Loans		50.0	0.7%	53.9	0.7%	32.8	0.5%	-7.2%	52.4%
Total Loan Portfolio		7,367.8	100.0%	7,347.7	100.0%	6,561.7	100.0%	0.3%	12.3%
* Figures in millions of Mexican Pesos.
**Includes Ps.30.1 million of payroll lending product.

Table 5: Total Loan Portfolio by Segment*
		1Q12	% of Total	4Q11	% of Total	1Q11	% of Total	QoQ % Change	YoY % Change
Formal Sector Loan Portfolio		3,577.0	48.5%	3,577.0	48.7%	3,319.4	50.6%	0.0%	7.8%
- Independencia (CrediInmediato)		2,994.3	40.6%	3,007.5	40.9%	2,817.7	42.9%	-0.4%	6.3%
- AEF Formal		532.7	7.2%	515.5	7.0%	468.9	7.1%	3.3%	13.6%
- AFI		50.0	0.7%	53.9	0.7%	32.8	0.5%	-7.2%	52.4%
Informal Sector Loan Portfolio		3,790.8	51.5%	3,770.7	51.3%	3,242.3	49.4%	0.5%	16.9%
- Independencia		1,870.7	25.4%	1,750.3	23.8%	1,588.9	24.2%	6.9%	17.7%
- Finsol Mexico		999.8	13.6%	1,049.1	14.3%	876.9	13.4%	-4.7%	14.0%
- Finsol Brasil		467.7	6.3%	543.7	7.4%	403.1	6.1%	-14.0%	16.0%
- AEF Informal		452.6	6.1%	427.5	5.8%	373.4	5.7%	5.9%	21.2%
Total Loan Portfolio		7,367.8	100.0%	7,347.7	100.0%	6,561.7	100.0%	0.3%	12.3%
* Figures in millions of Mexican Pesos.

Interest Expense

Interest expense during 1Q12 rose by Ps.32.3 million, or 19.9%, year-on-year, to Ps.194.9 million. This was principally the result of a 26.0% increase in the daily average balance of interest bearing liabilities from Ps.5,611.2 million in 1Q11 to Ps.7,071.0 million in 1Q12 resulting from the 12.3% growth of the loan portfolio and additional debt incurred to finance the Ps.1,180 million AEF and AFI acquisitions. This was partially offset by a decrease in the average interest rate paid(2) to 10.90% in 1Q12 from the 11.63% in 1Q11. The average TIIE stood relatively stable at 4.78% in 1Q12 compared with 4.85% in 1Q11.

Provision for Loan Losses

Provisions for loan losses increased year-on-year by 95.2%, or Ps.222.1 million to Ps.455.3 million in 1Q12, reflecting the increase in default probabilities in Independencia's loan portfolio and higher write-offs during the period. Excluding AEF and AFI, provisions for loan losses rose year-on-year by 85.3%, or Ps.195.8 million. Write-offs in 1Q12 increased 69.1%, or by Ps.168.0 million, to Ps.411.7 million from Ps.243.1 million in 1Q11. Excluding AEF and AFI, write-offs increased by 61.7% to Ps.381.7 million. Total non-performing loans reached Ps.718.7 million, up 34.1% from Ps.535.9 million on 1Q11, and 3.5% from the Ps.694.1 million posted in 4Q11. 

Market Related Income

During 1Q12, the Company reported a Ps.5.1 million loss, principally as a result of foreign exchange operations of Financiera Independencia, Finsol Brazil and Apoyo Financiero Incorporated. As explained in previous reports, since 3Q10 the mark-to-market impact of the cross currency swap to hedge the US dollar bond issuance has been reported in the Stockholders Equity line of the Balance Sheet.

Net Operating Revenue

The new Accounting Standards for Credit Institutions published in the Official Gazette of the Federation (DOF) starting Fiscal Year 2011, establish changes in the presentation of the Income Statement. Financiera Independencia has adopted these changes starting 4Q11. As a result, the line item "Other Income (expenses), which previously was presented below the Net Operating Income, is now included within "Other Operating Income (Expenses)".  The most relevant items under "Other Operating Income (Expenses)" now include:  recovery and sale of written-off loans, income from the sale of micro-insurance, fees from receiving payment of third-party services at branches, fees from commercial correspondents and sale of fixed assets, among others. For comparison purposes, figures for fiscal year 2011 were reclassified under this new accounting criterion.

Net operating revenue rose year-on-year by Ps.118.9 million, or 15.9%, to Ps.865.6 million in 1Q12 due to the reasons stated above as well as an increase in other operating income and higher commissions and fees collected. Other operating income increased to Ps.50.0 million in 1Q12 from Ps.16.6 million in 1Q11. This was mainly driven by a Ps.19.4 million increase from the sale of micro-insurance and by a Ps.9.4 million increase from the sale of written-off loans.

Commissions and fees collected increased to Ps.226.7 million in 1Q12 from Ps.203.4 million in 1Q11. The increase was the result of the consolidation of AEF into the Company's results. Excluding AEF, commissions and fees collected remained practically unchanged year-on-year at Ps.199.0 million.

Net Operating Income

Net operating income for 1Q12 decreased year-on-year by Ps.79.8 million, or 65.4%, to Ps.42.2 million. On a sequential comparison, net operating income declined 2.6% from Ps.43.4 million in 4Q11.

Non-interest expense increased by Ps.198.7 million or 31.8% year-on-year. The consolidation of AEF into the Company's results, expenses related to Finsol's expansion plan, and higher personnel expenses at Independencia's core business, were the main drivers behind the increase. Excluding AEF and AFI, non-interest expense increased year-on-year by Ps.67.4 million, or 11.2%, to Ps.668.8 million.  On a sequential basis, non-interest expense increased by Ps.2.1 million, or 0.3%.

During the last twelve months, the Company added a total of 47 branches to its network, eight of which were added during the quarter. Out of the eight additional branches, six were opened by AEF and two by AFI bringing the total network to 517 units.

Net Income

As a result of the factors discussed above, and after income tax, net income for 1Q12 declined 62.0% year-on-year, but increased 69.6% on a sequential basis to Ps.34.2 million.

Earnings per share (EPS) for the quarter were Ps.0.0477 compared with Ps.0.1258 for the same period last year.

Apoyo Economico Familiar Contribution

During 1Q12 AEF generated financial margin after provisions of Ps.155.3 million, or 25.5% of consolidated results, and net operating revenue of Ps.193.9 million, or 22.4% of consolidated results.   Additionally, AEF contributed with Ps.150.0 million of non-interest expense, or 18.2% of consolidated results.

Apoyo Financiero Inc. Contribution

During 1Q12 AFI generated financial margin after provisions of Ps.3.1 million, or 0.5% of consolidated results. Additionally, AFI contributed with Ps.4.5 million of non-Interest expense, or 0.5% of consolidated results.

FINANCIAL POSITION

Total Loan Portfolio

The total loan portfolio rose year-on-year by 12.3% to Ps.7,367.8 million, reflecting a 7.2% increase in the number of clients during the period, and a 4.8% increase in the average outstanding balance. At the end of the quarter, Findep had a total of 1,613,681 clients. Of these, 289,524 clients were from Finsol, 129,803 from AEF and 1,429 from AFI.

As of March 31, 2012, the total loan portfolio represented 70.0% of Findep's total assets, compared with 65.8% as of March 31, 2011. Cash and Investments represented 3.9% of total assets for 1Q12 compared with 4.7% in 1Q11.

Non-Performing Loan Portfolio

Total non-performing loans reached Ps.718.7 million, up 3.5% on a sequential basis from Ps.694.1 million and 34.1% year-over-year. The NPL ratio increased to 9.8% in 1Q12 from 8.2% in 1Q11 and from 9.4% in 4Q11. Excluding Finsol, AEF, and AFI, total non-performing loans reached Ps.615.7 million, up 28.0% year-on-year.

The NPL ratio for the CrediInmediato product fell to 11.4% in 1Q12, from 12.2% in 4Q11, but rose from the 10.9% in 1Q11. The NPL ratio for Independencia's individual informal segment was 14.6% in 1Q12, compared to 13.5% in 4Q11 and 11.0% in 1Q11. The NPL ratio in 1Q12 for the group lending segment (Finsol) was 5.9% in Mexico and 6.5% in Brazil, compared to 4.3% and 1.9% respectively, in 1Q11. The year-on-year increase in Finsol Mexico's NPLs is mainly the result of a higher exposure in the loan portfolio to clients within their first three loan cycles which historically experience higher NPL rates than those with a history of more than three cycles. A more challenging competitive environment has also impacted collections performance in Mexico and Brazil.

For the quarter, AEF's NPL ratio stood at 1.1% compared to 1.2% in 4Q11.

The coverage ratio for 1Q12 was 79.7%, compared with 76.4% in 4Q11 and 75.5% in 1Q11. The increase in the coverage ratio reflects the higher default probability of the loan portfolio and AEF´s high coverage ratio.

Liabilities

As of March 31, 2012 total liabilities were Ps.7,524.4 million, a 7.8% increase from Ps.6,979.3 million reported on March 31, 2011. The year-on-year increase was the result of the AEF acquisition, the 12.3% growth of the loan portfolio, and higher working capital needs. On a sequential comparison, total liabilities decreased 5.6% from Ps.7,973.3 million in December 31, 2011.

At the end of 1Q12, Findep's debt consisted of Ps.2,614.0 million (US$200 million) of senior guaranteed notes due March 2015, Ps.1,502.9 million in medium-term notes "Certificados Bursatiles" due May 2014, as well as Ps.2,877.7 million of bank and other entities loans. The Company's total lines of credit amounted to Ps.5,354.5 million at the end of 1Q12, of which Ps.1,727.0 million, or 32.3%, are available. This includes the lines of credit at Finsol and AEF.

Of the total lines of credit, Ps.50 million mature in May 2012, Ps.1,865 million in December 2012, Ps.1,500 million in December 2013, Ps.70 million in July 2014, Ps.170 million in October 2014 and the remaining Ps.1,700 million have an evergreen feature. These amounts include the available lines of credit at Finsol and AEF.

On August 30, 2011, the Company entered into a step-up interest rate swap from a floating to a fixed rate for a notional amount of Ps.1,500.0 million to hedge the medium-term notes "Certificados Bursatiles" for a three-year period starting on September 7, 2011. The interest rate for the first twelve months is 6.95% and thereafter it is 7.80% until maturity.

Stockholders' Equity

As of March 31, 2012 stockholder's equity was Ps.3,007.4 million, a 0.4% increase from Ps.2,994.2 million in the same year-ago period. This slight increase principally reflects net income generated during the period.

As a result of the revaluation of foreign currency denominated debt and the underlying derivatives position to hedge for foreign exchange risk, in 1Q12 the Company posted a Ps.74.9 million negative impact recorded as Financial Instruments - Derivatives. This impact will be naturally eliminated as the contract progresses and expires and is composed by the following items: a Ps.153.4 million negative impact from marking-to-market the Cross Currency Swap, a Ps.51.9 million gain from the revalorization of the bond, Ps.32.0 million in deferred taxes, and Ps.6.8 million loss from hedge-ineffectiveness. In this same line-item, the Company recorded a Ps.0.3 million loss from the mark-to-market of the interest rate swap of the Certificados Bursatiles outstanding and a Ps.1.6 million gain from the mark-to-market of the swap to hedge foreign exchange operations between subsidiaries.

PROFITABILITY AND EFFICIENCY RATIOS

ROAE/ROAA

ROAE for 1Q12 was 4.4% compared with 12.1% in 1Q11 and 2.6% in 4Q11. ROAA for 1Q12 was 1.2% compared with 3.9% in 1Q11 and with the 0.7% posted in 4Q11.

Efficiency Ratio & Operating Efficiency

From 1Q11 to 1Q12 Independencia increased the size of its loan portfolio by 12.3% and the number of clients by 7.2%. During the quarter, the Company added a total of 8 offices and increased its total labor force by 2.9% to 12,290 people.  

During 1Q12 the Company's efficiency ratio was 95.1%, compared with 83.7% in 1Q11 and 95.0% in 4Q11. The year-on-year increase is principally the result of the 95.2% rise in provisions for loan losses during the period. Excluding provisions for loan losses, the efficiency ratio in 1Q12 was 62.3% compared to 63.7% in 1Q11. Operating efficiency was 30.6% in 1Q12, up 3.8 pps year-on-year and in line with the 30.6% reported in 4Q11.

DISTRIBUTION NETWORK

At the end of the quarter, Independencia operated 517 offices in Mexico, Brazil, and the US, eight of which were added during the quarter. This includes 490 offices in Mexico of which 204 operated under the Financiera Independencia brand name, 168 offices under the Finsol brand name, and 118 offices under the Apoyo Economico Familiar brand name. The Company also operated 23 branches in Brazil under the Finsol Brazil brand name, and four branches in California under the Apoyo Financiero Inc. brand name.

The Company's total loan portfolio is well diversified and no federal entity represents more than 10.0% of the total loan portfolio. The three federal entities with the highest loan portfolio concentration are Veracruz, Estado de Mexico and Tamaulipas, with a 9.3%, 8.2%, and 8.1% share of the total portfolio, respectively.

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 March 31, 2012, Independencia had a total outstanding loan balance of Ps.7,367.8 million, operated 517 offices in Mexico, Brazil, and the US and had a total labor force of 12,290 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.

^{______________________}

1 Average lending rate: interest income / average balance of the total loan portfolio.

2 average interest rate paid = interest expense / daily average balance of interest bearing liabilities for the period.

 # # # TABLES TO FOLLOW # # #

	Finsol Mexico
	Income Statement
	For the Three Months Periods Ended March 31, 2012 and 2011
	(Millions of Mexican Pesos)
							1Q12 vs 1Q11
		1Q12	4Q11	3Q11	2Q11	1Q11	Absolute	%
	Interest Income	191.3	185.9	171.6	173.8	178.4	12.9	7.2%
	Interest Expense	17.1	17.7	16.3	17.3	29.7	(12.5)	(42.2%)
	Financial Margin	174.1	168.2	155.4	156.5	148.8	25.4	17.1%
	Provision for Loan Losses	57.9	34.2	33.1	34.5	40.1	17.7	44.2%
	Financial Margin After Provision for Loan Losses	116.3	134.0	122.3	122.0	108.6	7.7	7.1%
	Commissions and Fees Collected	-	0.0	0.0	0.0	(0.0)	0.0	(100.0%)
	Commissions and Fees Paid	5.3	5.3	4.0	4.2	3.6	1.7	48.6%
	Market Related Income	(0.0)	(0.0)	0.0	(0.0)	0.5	(0.5)	(104.4%)
	Other Operating Income (expense)	0.5	30.1	17.0	2.0	2.3	(1.8)	(0.8)
	Net Operating Revenue	111.5	158.8	135.3	119.8	107.9	3.6	3.3%
	Non-Interest Expense	115.0	111.6	104.8	98.5	95.7	19.3	20.1%
	Net Operating Income	(3.5)	47.2	30.4	21.3	12.2	(15.7)	(128.6%)
	Income Tax and Employees' Statutory Profit Sharing
	Current	3.3	2.8	4.5	-	-	3.3	n/a
	Deferred	(3.2)	11.0	8.0	8.0	0.9	(4.1)	(463.7%)
	Total Income Before Minority Interest	(3.5)	33.4	17.9	13.2	11.3	(14.8)	(131.1%)
	Net Income	(3.5)	33.4	17.9	13.2	11.3	(14.8)	(131.1%)
	Finsol Mexico
	Balance Sheet
	As of March 31, 2012 and 2011
	(Millions of Mexican Pesos)
							1Q12 vs 1Q11
		1Q12	4Q11	3Q11	2Q11	1Q11	Absolute	%
	ASSETS
	Cash and Cash Equivalents	102.8	103.2	131.0	345.4	113.3	(10.5)	(9.2%)
	Performing Loans	940.9	997.5	868.5	822.7	839.6	101.3	12.1%
	Non-Performing Loans	58.9	51.7	43.6	41.3	37.3	21.6	57.7%
	Total Loan Portfolio	999.8	1,049.1	912.1	864.0	876.9	122.9	14.0%
	Allowances for Loan Losses	(58.9)	(51.7)	(60.4)	(67.5)	(69.3)	10.5	(15.1%)
	Total Loan Portfolio - Net	940.9	997.5	851.6	796.5	807.6	133.3	16.5%
	Assets, Accounts Receivable & Other Assets	252.7	245.9	254.3	285.0	642.2	(389.5)	(60.7%)
	Total Assets	1,296.5	1,346.5	1,237.0	1,426.9	1,563.1	(266.7)	(17.1%)
	LIABILITIES
	Bank and Other Entities Loans	821.4	840.1	722.1	851.1	732.4	89.0	12.2%
	Other Accounts Payable	127.1	155.0	196.8	275.6	543.0	(415.9)	(76.6%)
	Total Liabilities	948.5	995.1	918.9	1,126.7	1,275.4	(326.9)	(25.6%)
	Total Stockholders' Equity	347.9	351.4	318.0	300.2	287.7	60.2	20.9%
	Total Liabiliies and Stockholders' Equity	1,296.5	1,346.5	1,237.0	1,426.9	1,563.1	(266.7)	(17.1%)

 

	Finsol Brasil
	Income Statement
	For the Three Months Periods Ended March 31, 2012 and 2011
	(Millions of Mexican Pesos)
							1Q12 vs 1Q11
		1Q12	4Q11	3Q11	2Q11	1Q11	Absolute	%
	Interest Income	81.6	85.0	71.6	53.2	55.1	26.5	48.0%
	Interest Expense	24.1	23.7	24.3	18.4	17.9	6.3	35.0%
	Financial Margin	57.4	61.3	47.3	34.9	37.2	20.2	54.3%
	Provision for Loan Losses	10.2	9.1	9.3	6.3	3.9	6.3	162.2%
	Financial Margin After Provision for Loan Losses	47.2	52.2	38.0	28.6	33.3	13.9	41.7%
	Commissions and Fees Paid	1.1	1.5	1.0	0.8	0.8	0.3	34.3%
	Market Related Income	15.6	4.8	(35.8)	1.2	(10.8)	26.5	(244.3%)
	Other Operating Income (expense)	(0.5)	(0.4)	0.1	0.1	0.3	(0.8)	(2.9)
	Net Operating Revenue	61.2	55.1	1.4	29.1	22.0	39.3	178.9%
	Non-Interest Expense	43.9	67.7	45.0	40.7	37.1	6.8	18.3%
	Net Operating Income	17.3	(12.7)	(43.6)	(11.7)	(15.1)	32.5	(214.6%)
	Total Income Before Income Tax and Employees' Statutory Profit Sharing	17.3	(12.7)	(43.6)	(11.7)	(15.1)	32.5	(214.6%)
	Net Income	17.3	(12.7)	(43.6)	(11.7)	(15.1)	32.5	(214.6%)
	Finsol Brasil
	Balance Sheet
	As of March 31, 2012 and 2011
	(Millions of Mexican Pesos)
							1Q12 vs 1Q11
		1Q12	4Q11	3Q11	2Q11	1Q11	Absolute	%
	ASSETS
	Cash and Cash Equivalents	62.6	40.6	30.5	45.8	113.7	(51.1)	(44.9%)
	Performing Loans	437.2	517.9	488.0	444.0	395.4	41.9	10.6%
	Non-Performing Loans	30.5	25.8	20.3	13.2	7.7	22.8	296.8%
	Total Loan Portfolio	467.7	543.7	508.3	457.2	403.1	64.7	16.0%
	Allowances for Loan Losses	(30.5)	(25.8)	(20.3)	(13.2)	(7.7)	(22.8)	296.8%
	Total Loan Portfolio - Net	437.2	517.9	488.0	444.0	395.4	41.9	10.6%
	Assets, Accounts Receivable & Other Assets	11.7	8.4	36.2	17.1	16.3	(4.6)	(27.9%)
	Total Assets	511.6	567.0	554.8	506.9	525.4	(13.7)	(2.6%)
	LIABILITIES
	Bank and Other Entities Loans	604.0	629.3	375.0	363.0	339.3	264.7	78.0%
	Other Accounts Payable	112.9	161.5	390.9	311.4	341.9	(229.0)	(67.0%)
	Total Liabilities	717.0	790.8	765.9	674.4	681.2	35.7	5.2%
	Total Stockholders' Equity	(205.3)	(223.8)	(211.2)	(167.5)	(155.9)	(49.5)	31.8%
	Total Liabiliies and Stockholders' Equity	511.6	567.0	554.8	506.9	525.4	(13.7)	(2.6%)

           

	Apoyo Economico Familiar
	Income Statement
	For the Three Months Periods Ended March 31, 2012 and 2011
	(Millions of Mexican Pesos)
								1Q12 vs 4Q11
		1Q12	4Q11	3Q11	2Q11	From 3/15/11 to 3/31/11	From 1/1/11 to 3/14/11	Absolute	%
	Interest Income	205.6	173.2	201.5	194.8	35.1	142.2	32.4	18.7%
	Interest Expense	21.3	21.5	21.2	16.3	3.1	18.6	(0.1)	(0.6%)
	Financial Margin	184.3	151.8	180.2	178.5	32.0	123.6	32.5	21.4%
	Provision for Loan Losses	29.0	33.5	31.4	22.9	3.5	18.0	(4.5)	(13.5%)
	Financial Margin After Provision for Loan Losses	155.3	118.3	148.8	155.6	28.6	105.6	37.0	31.3%
	Commissions and Fees Collected	27.4	42.3	15.6	14.3	4.3	23.3	(14.8)	(35.1%)
	Commissions and Fees Paid	0.4	0.2	0.6	0.5	0.1	0.3	0.1	57.3%
	Market Related Income	(0.0)	0.1	0.0	(0.1)	(0.0)	(0.1)	(0.1)	(104.2%)
	Other Operating Income (expense)	11.5	17.8	13.3	10.6	0.5	1.4	(6.2)	(35.1%)
	Net Operating Revenue	193.9	178.2	177.1	180.0	33.2	129.9	15.8	8.8%
	Non-Interest Expense	150.0	142.0	136.1	138.9	22.6	113.8	8.1	5.7%
	Net Operating Income	43.9	36.2	41.0	41.1	10.5	16.0	7.7	21.2%
	Income Tax and Employees' Statutory Profit Sharing
	Current	15.3	13.7	15.7	14.9	5.3	4.5	1.6	11.4%
	Deferred	(2.5)	(2.8)	(3.7)	(3.0)	(2.4)	0.2	0.3	(10.8%)
	Total Income Before Minority Interest	31.1	25.2	28.9	29.1	7.6	11.3	5.8	23.0%
	Net Income	31.1	25.2	28.9	29.1	7.6	11.3	5.8	23.0%

	Apoyo Economico Familiar
	Balance Sheet
	As of March 31, 2012 and 2011