Financiera Independencia reports 2Q13 results[1]
MEXICO CITY, July 24, 2013 /PRNewswire/ --
- Total loan portfolio of Ps.6,585.9 million, a 10.7% year-over-year (YoY) decrease, which reflects the implementation of more strict credit and operating standards to improve loan portfolio quality.
- Non-performing loan balance (NPLs) decreased by 37.2% and NPL ratio reached 7.3%, in 2Q13, compared to 10.4% in 2Q12, principally driven by improvements in NPLs of CrediInmediato and CrediPopular, which decreased by 413.5 bps and 511.8 bps respectively YoY.
- Write offs fell by 29.3% YoY, to Ps. 303.2 million in 2Q13 from Ps. 429.0 million in 2Q12.
- NIM after provisions including fees increased to 52.2% in 2Q13, from 42.3% in 2Q12; reflecting the success of the Company's new operating policies to improve loan portfolio quality and profitability.
- Net Income of Ps.56.3 million in 2Q13 compared with a Net Loss of Ps.38.2 million in 2Q12.
- The average lending rate increased to 70.6% in 2Q13 from 66.4% in 2Q12; while the funding cost increased to 10.94% from 10.76% in the same period.
- Equity to total assets of 29.5% compared with 28.3% in 2Q12.
- ROE in 2Q13 was 7.7%, compared with the negative 5.1% of 2Q12.
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 and six-month periods ended June 30th, 2013.
| Financial & Operational Highlights |
||||||||
| 2Q13 |
2Q12 |
% |
6M13 |
6M12 |
% |
|||
| Income Statement Data |
||||||||
| Net Interest Income after Provisions* |
738.2 |
566.3 |
30.4% |
1497.8 |
1,176.4 |
27.3% |
||
| Net Operating Income (Loss)* |
81.8 |
-42.5 |
-292.3% |
155.0 |
-0.3 |
NM |
||
| Net Income (Loss)* |
56.3 |
-38.2 |
-247.2% |
107.0 |
-4.0 |
-2744.6% |
||
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
||
| Earnings (Loss) Per Share |
0.0786 |
-0.0534 |
-247.2% |
0.1495 |
-0.0057 |
-2744.6% |
||
| Profitability & Efficiency |
||||||||
| NIM before Provisions Excl. Fees |
55.5% |
53.3% |
2.2 pp |
56.0% |
53.4% |
2.7 pp |
||
| NIM after Provisions Excl. Fees |
41.8% |
29.2% |
12.6 pp |
42.4% |
29.9% |
12.5 pp |
||
| NIM after Provisions Incl. Fees |
52.2% |
42.3% |
9.9 pp |
52.6% |
42.9% |
9.8 pp |
||
| ROA |
2.3% |
-1.5% |
3.7 pp |
2.1% |
-0.1% |
2.2 pp |
||
| ROE |
7.7% |
-5.1% |
12.9 pp |
7.4% |
-0.3% |
7.7 pp |
||
| Efficiency Ratio Incl. Provisions |
91.1% |
105.2% |
-14 pp |
91.7% |
100.0% |
-8.4 pp |
||
| Efficiency Ratio Excl. Provisions |
72.2% |
67.0% |
5.2 pp |
72.8% |
64.6% |
8.2 pp |
||
| Operating Efficiency |
33.8% |
32.9% |
0.9 pp |
34.1% |
31.4% |
2.7 pp |
||
| Fee Income |
15.1% |
24.1% |
-9 pp |
15.1% |
24.2% |
-9.1 pp |
||
| Capitalization |
||||||||
| Equity to Total Assets |
29.5% |
28.3% |
1.2 pp |
29.5% |
28.3% |
1.2 pp |
||
| Credit Quality Ratios |
||||||||
| NPL Ratio |
7.3% |
10.4% |
-3.1 pp |
7.3% |
10.4% |
-3.1 pp |
||
| Coverage Ratio |
101.8% |
80.2% |
21.6 pp |
101.8% |
80.2% |
21.6 pp |
||
| Operational Data |
||||||||
| Number of Clients |
1,176,630 |
1,459,748 |
-19.4% |
1,176,630 |
1,459,748 |
-19.4% |
||
| Number of Offices |
546 |
526 |
3.8% |
546 |
526 |
3.8% |
||
| Total Loan Portfolio* |
6,585.9 |
7,372.1 |
-10.7% |
6,585.9 |
7,372.1 |
-10.7% |
||
| Average Balance (Ps.) |
5,597.2 |
5,050.3 |
10.8% |
5,597.2 |
5,050.3 |
10.8% |
||
| * Figures in millions of Mexican Pesos. |
||||||||
Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "We've now reached the first half of the year and I am glad to report that the Company's results have been robust and consistent with our expectations. Our performance continues to reflect the benefits of the difficult, but necessary measures taken in 2012 to adapt the Company's business model to the new market dynamics and competitive environment; thus effectively changing it from a functional-driven, mass-based model, into a profit-driven one that privileges loan portfolio quality over size.
"There has also been a steady, but notable, sequential quarterly progress on most of the Company's profitability, efficiency and credit quality indicators, highlighting the success of the measures implemented and reflected in the Company's loan portfolio quality improvement and the reduction of its past due loan level to 7.3% -a notable 310 bps improvement over the 10.4% level reached in 2Q12.
"I am confident that we took the right corrective measures in 2012 to improve our loan portfolio quality and adapt our operation to a more dynamic competitive environment, setting the foundations for Financiera Independencia's steady return to our traditional profitability levels," noted Mr. Gonzalez.
| 2Q13 EARNINGS CONFERENCE CALL |
|
| Day: |
Thursday July 25th, 2013 |
| Time: |
11:00 AM US EDT; 10:00 AM Mexico City time |
| Dial-in number: |
866-393-9621 (US & Canada) |
| 706-758-4196 (International & Mexico) |
|
| Access Code: |
14843194 |
| Web cast: |
A live web cast of the conference call and replay will be available at www.findep.mx |
| Replay: |
Starting at 1:00 pm EDT on July 25th and ending at 11:59 pm EDT on August 1st, 2013. The replay will be accessible by dialing (855) 859-2056 (U.S./Canada) or 404-537-3406 (international) and entering pass code 14843194. |
[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.
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 June 30th, 2013, FINDEP had a total outstanding loan balance of Ps.6,585.9 million, operated 546 offices in Mexico, Brazil, and the US and had a total labor force of 12,171 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.
SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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