Financiera Independencia Reports 4Q09 Net Income up 33.2% to Ps.160.1 Million With Loan Portfolio Growth of 7.6% and ROE of 35.0%
MEXICO CITY, Feb. 25 /PRNewswire-FirstCall/ --
Fourth Quarter 2009 Highlights:
- Net income up 33.2% year-on-year for the quarter and down 17.3% for the fiscal year.
- Client base continues to expand, up 13.8% YoY with 20,483 new clients in 4Q09.
- 4Q09 loan growth continues to be driven by CrediPopular, a product targeted to working capital needs, which posted a 59.2% YoY loan portfolio growth.
- Non-performing loans to total loans down to 12.0% in 4Q09 from 12.5% in 3Q09 and 4Q08. Coverage ratio increased from 70.9% in 3Q09 to 73.4% in 4Q09.
- NIM after provisions including fees declined to 52.7% in 4Q09 from 57.9% in 4Q08, but increased from 46.0% in 3Q09 due to lower provisions. Provisions represent 37.6% of financial margin, compared to 45.2% in 3Q09 and 40.0% in 2Q09, however still above the 2008 quarterly average which stood at 28.0%.
- Efficiency ratio improved to 74.2% in 4Q09 from 77.7% in 3Q09, but deteriorated from 72.1% in 4Q08, mainly due to an increase in provisions.
- Funding costs decreased to 7.85% in 4Q09 from 10.86% in 4Q08.
- ROE in 4Q09 up to 35.0% from 28.5% in 4Q08 and 23.2% in 3Q09.
- Capital ratio at 31.3% continues to provide support in the current environment.
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP), (Independencia) a Mexican microfinance lender of personal loans to lower income segment individuals, today announced results for the three-month period ended December 31, 2009. Net income for 4Q09 increased 33.2% YoY to Ps.160.1 million.
Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, "This was a very important year for Independencia. We grew our loan portfolio, further strengthened our market positioning and operations and established a solid base to continue to pursue profitable growth. In a challenging environment, where consumer loans in the Mexican financial system declined by 17.4%, we increased our client base by 13.8% and our loan portfolio by 7.6%. Most importantly, this was achieved while maximizing the efficiency of our processes and reducing our labor force, thus improving operating efficiency year-on-year. As a consequence of the macroeconomic environment, we increased significantly our provisions for loan losses but were able to achieve an ROE of 31.5% while keeping a strong capital ratio."
"The acquisition of Finsol, closed on February 19, 2010, establishes Independencia as a leading consolidator in the Mexican microfinance market and positions the Company in the group lending methodology segment. It also allows us to increase our client base to close to 1.4 million clients, to operate a total of 348 branches in Mexico and also to enter the Brazilian microfinance market, an incipient market in Latin America's largest economy," concluded Mr. Gonzalez.
Financial & Operational Highlights
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4Q09 4Q08 %
---- ---- -
Income Statement Data
Net Interest Income after Provisions* 467.8 465.8 0.4%
Net Operating Income* 177.2 186.4 -4.9%
Net Income* 160.1 120.2 33.2%
Total Shares Outstanding (million) 643.9 633.8 1.6%
EPS 0.2486 0.1896 31.1%
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Profitability & Efficiency
NIM before Provisions Excl. Fees 57.6% 59.3% -1.8 pp
NIM after Provisions Excl. Fees 35.9% 40.4% -4.5 pp
NIM after Provisions Incl. Fees 52.7% 57.9% -5.2 pp
ROA 11.0% 9.4% 1.6 pp
ROE 35.0% 28.5% 6.6 pp
Efficiency Ratio Incl. Provisions 74.2% 72.1% 2.1 pp
Efficiency Ratio Excl. Provisions 52.6% 54.3% -1.7 pp
Operating Efficiency 35.0% 37.8% -2.7 pp
Fee Income 27.6% 28.8% -1.3 pp
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Capitalization
Equity to Total Assets 31.3% 26.0% 5.3 pp
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Credit Quality Ratios
NPL Ratio 12.0% 12.5% -0.6 pp
Coverage Ratio 73.4% 62.5% 10.9 pp
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Operational Data
Number of Clients 1,236,092 1,085,963 13.8%
Number of Offices 199 192 3.6%
Total Loan Portfolio* 4,812.3 4,473.8 7.6%
Average Balance (Ps.) 3,893.2 4,119.7 -5.5%
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12M09 12M08 %
--------------------- ----- ----- -
Income Statement Data
Net Interest Income after Provisions* 1,709.1 1,783.3 -4.2%
Net Operating Income* 637.7 830.2 -23.2%
Net Income* 515.2 622.9 -17.3%
Total Shares Outstanding (million) 643.9 633.8 1.6%
EPS 0.8133 0.9320 -12.7%
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Profitability & Efficiency
NIM before Provisions Excl. Fees 55.0% 59.1% -4.1 pp
NIM after Provisions Excl. Fees 33.7% 42.4% -8.7 pp
NIM after Provisions Incl. Fees 48.9% 60.2% -11.3 pp
ROA 9.1% 13.6% -4.5 pp
ROE 31.5% 34.4% -2.8 pp
Efficiency Ratio Incl. Provisions 74.3% 67.2% 7 pp
Efficiency Ratio Excl. Provisions 51.8% 52.7% -0.9 pp
Operating Efficiency 32.5% 37.1% -4.7 pp
Fee Income 29.9% 29.3% 0.6 pp
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Capitalization
Equity to Total Assets 31.3% 26.0% 5.3 pp
---------------------- ---- ---- ------
Credit Quality Ratios
NPL Ratio 12.0% 12.5% -0.6 pp
Coverage Ratio 73.4% 62.5% 10.9 pp
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Operational Data
Number of Clients 1,236,092 1,085,963 13.8%
Number of Offices 199 192 3.6%
Total Loan Portfolio* 4,812.3 4,473.8 7.6%
Average Balance (Ps.) 3,893.2 4,119.7 -5.5%
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* Figures in millions of Mexican Pesos.
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All financial figures discussed in this announcement are audited and are prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. Figures for 2008 and 2009 are expressed in nominal pesos. Tables state figures in millions of pesos, unless otherwise noted.
4Q09 CONSOLIDATED RESULTS
Financial Margin after Provision for Loan Losses
Financial margin after provision for loan losses for 4Q09 increased 0.4% year-on-year to Ps.467.8 million. This is principally explained by the following:
Interest Income
Interest income for the quarter increased 7.3% year-on-year to Ps.827.0 million, principally as a result of the Ps.56.5 million, or 7.4%, increase in interest income on loans. The total loan portfolio increased 7.6% during the period, reflecting a 13.8% increase in the number of clients and a 5.5% decline in the average balance per client.
The average lending rate(1) of the total loan portfolio decreased to 68.9% from the 70.7% reported in 4Q08, but was above the 66.6% reported in 3Q09. The year-on-year decline was mainly driven by higher level of discounts offered to encourage payments of past due installments, which more than offset the increased share of loans targeted to the informal sector, which carry higher interest rates. Discounts increased from Ps.68.3 million, or 8.9% of interest income, in 4Q08 to Ps.117.3 million, or 14.2% of interest income, in 4Q09.
Loans to the informal sector rose 22.1% year-on-year, increasing their share of the total loan portfolio by 4.3 percentage points to 35.7%, up from 31.4% in 4Q08 and 34.8% in 3Q09. Growth in the informal sector was driven by the CrediPopular product. CrediPopular loans rose to 26.5% of total loans in the quarter reaching 347,383 clients, up by 103,809 clients, or 42.6%, year-on-year. On a sequential basis, CrediPopular added 21,613 clients, representing a 6.6% increase. CrediConstruye loans, in turn, reached 88,459 clients, down 9,997 clients, or 10.2%, year-on-year. On a sequential basis CrediConstruye clients declined 9.4%.
The CrediInmediato loan product, a revolving line of credit that targets the formal sector, accounted for 64.3% of total loans down from 68.6.% in 4Q08 and 65.2% in 3Q09. The number of CrediInmediato clients in 4Q09 grew by 9.2% year-on-year, while the total loan portfolio of this product rose by 0.9%, to Ps.3,095.5 million. On a sequential basis the number of CrediInmediato clients rose 1.4%, while the loan portfolio declined 0.9%. The average balance per client decreased from Ps.4,463 in 4Q08 to Ps.4,125, as clients in the formal economy remain cautious on the usage of their revolving line of credit. In fact, the average draw down rate declined from 76% in December 2008 to 73% in December 2009.
(1) Average lending rate: interest income / average balance of the total loan portfolio.
Table 1: Financial Margin*
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4Q09 3Q09 4Q08 QoQ % YoY % 12M09 12M08 %
---- ---- ---- ----- ----- ----- ----- -
Interest Income 827.0 782.9 771.0 5.6% 7.3% 3,110.6 2,715.8 14.5%
Interest on
Loans 824.2 779.4 767.7 5.8% 7.4% 3,098.8 2,708.6 14.4%
Interest from
Investment in
Securities 2.8 3.5 3.2 -19.8% -13.1% 11.7 7.2 62.9%
Interest Expense 77.5 73.5 86.7 5.4% -10.6% 327.3 231.4 41.4%
Financial Margin 749.5 709.3 684.3 5.7% 9.5% 2,783.2 2,484.4 12.0%
Provision for Loan
Losses 281.7 320.3 218.4 -12.1% 28.9% 1,074.2 701.1 53.2%
Financial Margin
After Provision
for Loan Losses 467.8 389.0 465.8 20.3% 0.4% 1,709.1 1,783.3 -4.2%
* Figures in millions of Mexican Pesos
Table 2: Loan Portfolio, Number of Clients & Average Balance
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4Q09 3Q09 4Q08 QoQ % YoY %
---- ---- ---- ----- -----
Loan Portfolio (million Ps.) 4,812.3 4,793.1 4,473.8 0.4% 7.6%
Number of Clients 1,236,092 1,215,609 1,085,963 1.7% 13.8%
Average Balance (Ps.) 3,893.2 3,943.0 4,119.7 -1.3% -5.5%
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Table 3: Number of Clients by Product Type
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4Q09 % of Total 3Q09 % of Total
---- ---------- ---- ----------
Formal Sector Loans 750,374 60.7% 740,133 60.9%
- CrediInmediato 750,374 60.7% 740,133 60.9%
Informal Sector Loans 485,718 39.3% 475,476 39.1%
- CrediPopular 347,383 28.1% 325,770 26.8%
- CrediMama 49,876 4.0% 52,098 4.3%
- CrediConstruye 88,459 7.2% 97,608 8.0%
Total Number of Loans 1,236,092 100.0% 1,215,609 100.0%
--------------------- --------- ----- --------- -----
QoQ % YoY %
4Q08 % of Total Change Change
---- ---------- ------ ------
Formal Sector Loans 687,464 63.3% 1.4% 9.2%
- CrediInmediato 687,464 63.3% 1.4% 9.2%
Informal Sector Loans 398,499 36.7% 2.2% 21.9%
- CrediPopular 243,574 22.4% 6.6% 42.6%
- CrediMama 56,469 5.2% -4.3% -11.7%
- CrediConstruye 98,456 9.1% -9.4% -10.2%
Total Number of Loans 1,085,963 100.0% 1.7% 13.8%
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Table 4: Total Loan Portfolio by Product Type*
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4Q09 % of Total 3Q09 % of Total
---- ---------- ---- ----------
Formal Sector Loan
Portfolio 3,095.5 64.3% 3,123.1 65.2%
- CrediInmediato 3,095.5 64.3% 3,123.1 65.2%
Informal Sector Loan
Portfolio 1,716.8 35.7% 1,670.0 34.8%
- CrediPopular 1,277.1 26.5% 1,174.7 24.5%
- CrediMama 119.1 2.5% 124.5 2.6%
- CrediConstruye 320.6 6.7% 370.8 7.7%
Total Loan Portfolio 4,812.3 100.0% 4,793.1 100.0%
-------------------- ------- ----- ------- -----
QoQ % YoY %
4Q08 % of Total Change Change
---- ---------- ------ ------
Formal Sector Loan
Portfolio 3,067.8 68.6% -0.9% 0.9%
- CrediInmediato 3,067.8 68.6% -0.9% 0.9%
Informal Sector Loan
Portfolio 1,406.0 31.4% 2.8% 22.1%
- CrediPopular 801.9 17.9% 8.7% 59.2%
- CrediMama 131.8 2.9% -4.3% -9.6%
- CrediConstruye 472.2 10.6% -13.5% -32.1%
Total Loan Portfolio 4,473.8 100.0% 0.4% 7.6%
-------------------- ------- ----- --- ---
* Figures in millions of Mexican Pesos.
Interest Expense
Interest expense during 4Q09 declined by Ps.9.2 million, or 10.6%, to Ps.77.5 million from Ps.86.7 million on 4Q08, principally reflecting a lower rate on interest bearing liabilities during the period, which more than offset the higher debt levels. Debt increased by Ps.252.2 million or 7.0% year-on-year, principally to fund the 7.6% growth in the Company's loan portfolio during the last twelve months and working capital needs.
The reduction in TIIE (benchmark 28-day interbank lending rate) allowed Independencia to decrease the average interest rate paid(2) on interest bearing liabilities to 7.85% from 10.86% in 4Q08. The average interest rate paid, however, remained unchanged quarter-on-quarter. The average TIIE stood at 4.93% in 4Q09 compared with 8.71% in 4Q08 and 4.91% in 3Q09.
(2) average interest rate paid = interest expense / daily average balance of interest bearing liabilities for the period.
Provision for Loan Losses
Provisions for loan losses rose year-on-year by 28.9%, or Ps.63.2 million, to Ps.281.7 million in 4Q09. Quarter-on-quarter, provisions for loan losses declined 12.1%, or Ps.38.7 million, from Ps.320.3 million in 3Q09.
The year-on-year increase in provisions for loan losses was driven by higher write-offs during the period. Write-offs rose 82.2%, or by Ps.127.9 million, to Ps.283.7 million in 4Q09 from Ps.155.7 million in 4Q08, and remained relatively stable from the Ps.281.8 million reported on 3Q08. Total non-performing loans reached Ps.576.1 million, up 2.7% from Ps.560.8 million at December 31, 2008 and down 3.8% from the previous quarter.
Net Operating Revenue
Net operating revenue increased year-on-year by Ps.18.7 million, or 2.8%, to Ps.686.1 million in 4Q09 due to the reasons stated above and the increase in other income (expense) on the operations. Other income of the operations increased by Ps.20.1 million to Ps.29.2 million in 4Q09 driven by an increase in sales of written of loans from Ps. 9.1 million in 4Q08 to Ps.18.5 million in 4Q09. On a sequential comparison, net operating revenue increased 17.8% from Ps.582.3 million in 3Q09, principally as a result of the 12.1% decline in provisions for loan losses and the 5.7% increase in financial margin.
Net Operating Income
Net operating income for 4Q09 declined year-on-year by Ps.9.2 million, or 4.9%, to Ps.177.2 million. On a sequential comparison, however, net operating income increased 36.7% from Ps.129.7 million in 3Q09.
Total non-interest expense increased year-on-year by Ps.27.9 million, or 5.8%, to Ps.508.9 million in 4Q09 from Ps.481.1 million in 4Q08. On a sequential basis, total non-interest expenses rose by 12.4% from Ps.452.7 million in 3Q09. During the quarter the Company paid additional incentives and compensation to the sales and collection force which resulted in an increase in salaries and employee benefits. Administrative and operational expenses increased as a result of additional costs incurred in connection with the Finsol acquisition announced on November 30, 2009. During the year, Independencia opened seven new offices, one of which was opened in 4Q09, bringing the total network to 199 units.
Table 5: Net Operating Income*
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Change
--------------
4Q09 3Q09 4Q08 QoQ % YoY %
----- ----- ----- ------ ------
Financial Margin 749.5 709.3 684.3 5.7% 9.5%
Provision for Loan Losses 281.7 320.3 218.4 -12.1% 28.9%
Financial Margin After Provision
for Loan Losses 467.8 389.0 465.8 20.3% 0.4%
Non-Interest Income, net 189.1 193.3 192.5 -2.2% -1.8%
- Commissions and Fees Collected 192.7 196.3 196.2 -1.8% -1.8%
- Commissions and Fees Paid 3.6 2.9 3.7 23.8% -2.2%
Other income (expense) of the
operation 29.2 0.0 9.1 n/a 220.6%
Net Operating Revenue 686.1 582.3 667.5 17.8% 2.8%
Non-Interest Expense 508.9 452.7 481.1 12.4% 5.8%
- Other Administrative &
Operational Expenses 163.3 127.1 155.0 28.5% 5.3%
- Salaries & Employee Benefits 345.7 325.6 326.1 6.2% 6.0%
Net Operating Income 177.2 129.7 186.4 36.7% -4.9%
-------------------- ----- ----- ----- ---- ----
Operational Data
Number of Offices 199 198 192 0.5% 3.6%
Total Labor Force 9,643 9,586 10,124 0.6% -4.8%
- Full Time Personnel 9,515 9,412 9,695 1.1% -1.9%
- Independent Sales Agents 128 174 429 -26.4% -70.2%
--------------------------- --- --- --- ----- -----
12M09 12M08 % Change
----- ----- --------
Financial Margin 2,783.2 2,484.4 12.0%
Provision for Loan Losses 1,074.2 701.1 53.2%
Financial Margin After Provision for
Loan Losses 1,709.1 1,783.3 -4.2%
Non-Interest Income, net 739.8 741.2 -0.2%
- Commissions and Fees Collected 752.6 751.4 0.2%
- Commissions and Fees Paid 12.7 10.1 25.9%
Other income (expense) of the operation 29.2 9.1 220.6%
Net Operating Revenue 2,478.1 2,533.7 -2.2%
Non-Interest Expense 1,840.5 1,703.4 8.0%
- Other Administrative & Operational
Expenses 532.5 509.3 4.6%
- Salaries & Employee Benefits 1,308.0 1,194.2 9.5%
Net Operating Income 637.7 830.2 -23.2%
-------------------- ----- ----- -----
Operational Data
Number of Offices 199 192 3.6%
Total Labor Force 9,643 10,124 -4.8%
- Full Time Personnel 9,515 9,695 -1.9%
- Independent Sales Agents 128 429 -70.2%
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* Financial data in millions of Mexican Pesos.
Net Income
As a result of the factors discussed above, and after other income and expenses, as well as income tax, net income for 4Q09 increased year-on-year by Ps.39.9 million, or 33.2%, to Ps.160.1 million. This reflects the positive impact of Ps.35.8 million in the deferred income tax as a result of the change in the Mexican income tax rate from 28% to 30%. Earnings per share (EPS) for the quarter were Ps.0.2486 compared with Ps.0.1896 for the same period of last year.
FINANCIAL POSITION
Total Loan Portfolio
The total loan portfolio rose year-on-year by 7.6% to Ps.4,812.3 million, reflecting a 13.8% increase in the number of clients during the period and a 5.5% decline in the average outstanding balance. As of December 31, 2009 Independencia had 1,236,092 clients.
The total loan portfolio represented 80.9% of Independencia's total assets as of December 31, 2009, compared with 83.0% of total assets in December 31, 2008. Cash and Investments represented 10.4% of total loans for 4Q09 compared with 7.7% in 4Q08.
Non-Performing Loan Portfolio
Total non-performing loans reached Ps.576.1 million, down 3.8% on a sequential basis from Ps.599.2 million at September 30, 2009 and up 2.7% from December 31, 2008. The NPL ratio declined to 12.0% in 4Q09 from 12.5% in 3Q09 and 4Q08.
The NPL ratio in the CrediInmediato product in 4Q09 was 11.6%, compared with 14.4% in 4Q08 and 13.2% in 3Q09. The NPL ratio for the informal segment rose to 12.7% in 4Q09, from 8.6% in 4Q08 and 11.2% in 3Q09.
The coverage ratio for 4Q09 was 73.4% compared with 62.5% in 4Q08 and 70.9% in 3Q09. The increase in coverage ratio reflects a higher probability of default in our loan portfolio.
Liabilities
As of December 31, 2009 total liabilities were Ps.4,087.1 million, a 2.6% increase from Ps.3,984.6 million in December 31, 2008. This increase was the result of higher financing needs as a consequence of the growth of the loan portfolio and overall working capital needs. On a sequential comparison, total liabilities increased 5.2% from Ps.3,884.7 million in September 30, 2009.
At the end of 4Q09, Independencia's debt consisted of Ps.787.0 million in medium-term notes "Certificados Bursatiles" (due June 2011) as well as Ps.3,079.3 million of bank and other entities loans. Independencia's total available lines of credit amount to Ps.4,200 million. Of the total lines of credit, Ps.700 million are due in March 2011, Ps.1,250 million in December 2012, Ps.1,250 million in December 2013 and the remaining Ps.1,000 million has an evergreen feature. All of the Company's debt is denominated in Mexican Pesos.
During 3Q09 Independencia purchased an interest rate cap to hedge the risk of a significant increase in interest rates in Mexico. The Company is hedged for the following nine months for any increase in TIIE beyond 7.0% for a notional amount of Ps.3,600 million, or 100% of its funding.
Stockholders' Equity
As of December 31, 2009 stockholder's equity was Ps.1,863.3 million, a 32.8% increase from Ps.1,402.8 million in December 31, 2008. This increase was attributable to net income generated during the period, which more than offset the share buyback program of the Company.
PROFITABILITY AND EFFICIENCY RATIOS
ROAE/ROAA
ROAE for 4Q09 was 35.0% compared with 28.5% in 4Q08 and 23.2% in 3Q09. ROAE for 4Q09, 3Q09 and 4Q08 reflects the capital reduction announced on September 18, 2008.
ROAA for 4Q09 was 11.0% compared with 9.4% in 4Q08 and 7.1% in 3Q09.
Efficiency Ratio & Operating Efficiency
From 4Q08 to 4Q09, Independencia increased the size of its loan portfolio by 7.6% and the number of clients by 13.8%. The Company also added a net of 7 offices and reduced its total labor force by 4.8% down to 9,643 people. During 4Q09 the Company's efficiency ratio (including provisions) was 74.2%, compared with 72.1% in 4Q08 and 77.7%, in 3Q09. The year-on-year comparison was principally the result of the 28.9% increase in provisions for loan losses and the slowdown in interest income. As a result of the efficiency program implemented during the first half of 2009, total non-interest expense increased 5.8% year-on-year, well below the 9.5% increase in financial margin for the period.
Operating efficiency was 35.0% in 4Q09, down 270 bps in year-on-year, but up 330 bps quarter-on-quarter.
DISTRIBUTION NETWORK
At the end of the quarter, Independencia operated 199 offices in 143 cities with more than 50,000 inhabitants. During the last twelve months, the Company opened a net of 7 offices, one of which was opened during 4Q09 in the state of Tamaulipas.
The Company's 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, Tamaulipas, and Jalisco, with a 9.5%, 9.4%, and 8.1% share of the total portfolio, respectively.
KEY EVENTS
Financiera Independencia Launched Level I ADR Program in the United States
On November 30, 2009 Independencia launched a sponsored Level I American Depositary Receipt (ADR) program in the United States to facilitate greater international investment in the Company. BNY Mellon was appointed as the Company's depositary bank to administer the ADR program. Each ADR represents 15 shares of Independencia common stock and trades over-the-counter (OTC). Independencia's common shares continue to trade on the Bolsa Mexicana de Valores under the symbol "FINDEP".
Financiera Independencia to Acquire Financiera Finsol and to Expand Internationally to Brazil
On November 30, 2009 Independencia signed a definitive purchase agreement to acquire all of the outstanding shares for 100% cash of Financiera Finsol, S.A. de C.V., SOFOM., E.N.R. ("Finsol"), the second largest group lending microfinance institution in Mexico, and a group of related entities: Financiera Popular Finsol S.A. de C.V., S.F.P. (SOFIPO - savings and loans entity), Finsol Vida S.A. de C.V. (an insurance broker), Finsol S.A. de C.V. (a service company) and Instituto Finsol Brazil ("Finsol Brazil"), a group lending microfinance institution in Brazil (the "Transaction"). Total consideration for the Transaction is Ps.530 million. Upon completion of the transaction, Independencia will increase its number of clients by 158,818. The Transaction will be financed through a capital increase of 85 million shares offered at a subscription price of Ps.10.00 per share. Use of proceeds will be to pay the purchase price and to provide up to Ps. 300 million of capital to strengthen the balance sheets of the companies to be acquired.
On December 1st, 2009, Independencia called an Extraordinary Shareholders' Meeting that took place on December 17th, 2009 to discuss, among other things, a capital increase of 85 million shares at a subscription price of Ps.10.00 per share. The capital increase was approved by the Shareholders' Meeting, and Independencia's shareholders had the right to exercise their pre-emptive rights until January 11th, 2010. On December 18, 2009, the Company announced that the Comision Federal de Competencia approved its acquisition of Finsol.
Eton Park Invests in Independencia
On December 18, 2009, Independencia announced it signed a binding agreement (the "Agreement") with one or more funds managed by Eton Park Capital Management, L.P. (together, "Eton Park") by which Eton Park subscribed 66.5 million shares pursuant to the capital increase announced by the Company on November 30th, 2009. Controlling shareholders of the Company waived their pre-emptive rights in connection with the proposed capital in favor of Eton Park.
In consideration for Eton Park's subscription for 66.5 million shares in the capital increase, Eton Park will have the right to subscribe for an additional 45 million shares (25 million at 14 pesos per share and 20 million at 13.50 pesos per share) of the Company. This right may be exercised at any time during the following five years, and expires in December 2014. In order to have the shares available in case Eton Park does exercise this right, Independencia will propose a capital increase resulting in treasury stock of 45 million shares at its annual Shareholders' Meeting (which shall be held no later than April 2010). If Eton Park exercises its right to subscribe for the additional shares, Independencia will receive a capital increase of Ps. 620 million. The proceeds of that additional capital will provide capacity for future potential consolidation opportunities.
Financiera Independencia Concludes 85,000,000 Share Capital Increase
On January 15, 2010 Independencia announced it completed the Rights Offering Process of the 85,000,000 share capital increase first announced on November 30, 2010. A total of 79,904,401 shares were subscribed at the issue price of Ps.10.00 per share. The remaining 5,095,599 shares were offered for subscription to all of the Company's shareholders in a Second Round of Rights Offering Process at the issue price of Ps.10.00 per share. Under the Second Round Process, the Company's shareholders had the right to subscribe and pay, additionally and proportionally among them, as many shares as it may be necessary in order to exercise a right to increase their equity holding percentage proportionally.
On February 5, 2010 the Company announced that it completed the Second Round of Rights Offering Process, thus finalizing the 85 million share capital increase. A total of 5,095,599 shares were subscribed during the Second Round. All shares were subscribed at the issue price of Ps.10.00 per share.
Financiera Independencia Receives HR A and HR2 Long- and Short-Term Counterparty Risk Credit Ratings from HR Ratings
On February 10, 2010 Independencia received an "HR A" long-term and an "HR2" short-term counterparty risk credit rating from HR Ratings de Mexico S.A. de C.V. ("HR Ratings"). The outlook is "Stable".
The HR A long-term credit rating reflects Independencia's ability to make timely payment on its debt obligations and its low credit risk when facing adverse economic changes. The HR2 short term rating, in turn, reflects the Company's capacity to make timely payments on its short-term debt as well as a higher risk profile when compared to other credit instruments with a higher credit rating.
Financiera Independencia's Clients to Make Payments at OXXO Retail Stores
On November 2009, the Company launched a pilot program where its customers can make their loan payments at OXXO retail stores. As of the date of this press release, the program is operating in 65 offices in 17 different federal entities. The Company is expected to launch this program nationwide during 2Q10.
Financiera Independencia Closes Acquisition of Finsol
On February 19, 2010 the Company announced that it successfully closed the acquisition of all of the outstanding shares of Financiera Finsol, S.A. de C.V., SOFOM., E.N.R., the second largest group lending microfinance institution in Mexico and a group of related entities including Instituto Finsol Brazil, a group lending microfinance institution in Brazil, that was announced on November 30, 2009. The acquisition of Financiera Popular Finsol (SOFIPO), a savings and loans related entity, is still subject to the authorization of the Comision Nacional Bancaria y de Valores, which is expected to take place during 2Q10. Through this acquisition, Independencia added 158,818 new clients. The total consideration for the transaction was Ps.530 million.
Financiera Independencia to Submit Request for Banking License
On February 24, 2010 Independencia's Board of Directors authorized the Company to submit a request for a Banking License in Mexico. The process, of both having a banking license and being able to operate as such is expected to take approximately 18 months. It is important to note that the Mexican Banking and Securities Exchange Commission (CNBV) has discretionary authority to grant banking licenses in Mexico and the fact that Independencia requests a banking license do not implies that such license will be granted. In addition to receiving authorization from the CNBV, to begin operating as a bank the Company has to implement material changes to its existing branch network and operational systems.
The transformation into a bank is a strategic decision that will contribute in achieving two fundamental goals: broaden the scope of products and services offered to our customers by accepting deposits and develop a more stable and permanent funding source through retail deposits. By becoming a bank the Company considers that its clients will become more loyal and it will bring additional opportunities to do business with them. Independencia's customers are already used to visit our branches given that we receive 1.7 million monthly payments in average at our network.
INDEPENDENCIA REPORTS ACCORDING TO MEXICAN BANKING ACCOUNTING PRINCIPLES
On September 19, 2008 the Mexican Securities and Exchange Commission (CNBV) revised its general regulations applicable to listed companies in the Mexican Stock Exchange. Among the changes introduced, starting on 2009 it is mandatory that unregulated SOFOMs report according to Mexican Banking Accounting Principles. As a result, financial statements for 1Q09, 2Q09, 3Q09 and 4Q09 have been prepared in accordance to such principles. Independencia adopted in advance these changes for 2008 as well. For comparison purposes, tables with restated historical balance sheet and income statement data can be found on page 11 and 12 of this report.
The main line items impacted include:
Non-performing loans: non-performing revolving credit line products are recognized at 60 days past due, instead of 90 days past due.
Loan loss reserve: Mexican Banking Accounting Principles recognize two methodologies to estimate loan loss reserves. One using Mexican Banking Commission parameters and another one based on parameters developed internally by Financial Institutions. Both methodologies estimate probability of default and expected losses. Therefore, both are forward-looking methodologies rather than backward-looking as Independencia used to have by keeping reserves of 125% of past due loans. Given the Company's 16-year experience in the sector and its extensive database, management decided to estimate internally both the probability of default and the expected losses. Under the new methodology, we are required to have lower reserves. It is important to note that such reduction is based on statistical methodologies and as such, the level of reserves presented in the Company's balance sheet are in line with the risks being incurred. For transparency purposes, Independencia is making its methodology available to selected investors (upon signing a confidentiality agreement).
4Q09 EARNINGS CONFERENCE CALL
Day: |
Friday, February 26, 2009 |
|
Time: |
11:00 AM US ET; 10:00 AM Mexico City time |
|
Dial-in number: |
866-393-9621 (US & Canada) |
|
706-758-4196 (International & Mexico) |
||
Access Code: |
54982261 |
|
Presentation: |
A slide presentation will also be available beginning February 26, 2010 at 8:00 am U.S. ET (7:00 am Mexico City Time) for download from the investor relations section (quarterly earnings) of the Company's corporate website at http://www.independencia.com.mx. |
|
Web cast: |
A live web cast of the conference call and replay will be available at http://www.independencia.com.mx. |
|
Replay: |
Starting 12:00 pm EST on February 26 and 11:59 pm ET on March 5, 2010. The replay is accessible by dialing 800-642-1687 (U.S.) or 706-645-9291 (international) and entering passcode 54982261. |
|
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. Independencia provides microcredit loans on an unsecured basis to individuals in the low-income segments in Mexico in urban areas of both the formal and informal economy. As of December 31, 2009, Independencia had a total outstanding loan balance of Ps.4,812.3 million, operated 199 offices in 143 cities throughout 31 of Mexico's 32 federal entities and had a total labor force of 9,643 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.independencia.com.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.
# # # TABLES TO FOLLOW # # #
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.
Consolidated Balance Sheet
As of December 31, 2009 and 2008
(Millions of Mexican Pesos)
4Q09 3Q09 2Q09 1Q09
-------- -------- -------- --------
ASSETS
------
Cash 129.3 106.5 120.0 107.4
Investments in Securities 369.6 206.3 279.9 200.5
Cash and Cash Equivalents 498.9 312.8 399.9 307.9
Performing Loans 4,236.2 4,193.9 4,027.8 3,957.4
Non-Performing Loans 576.1 599.2 588.2 486.0
Total Loan Portfolio 4,812.3 4,793.1 4,615.9 4,443.4
Allowances for Loan Losses (423.0) (424.9) (386.4) (326.0)
Total Loan Portfolio - Net 4,389.3 4,368.2 4,229.5 4,117.4
Other Accounts Receivables - Net 111.6 181.5 330.0 288.8
Property, Plant & Equipment - Net 303.3 297.2 288.6 282.2
Deferred Income Tax 572.6 445.6 424.8 360.6
Other Assets 74.8 69.5 66.7 66.2
Total Assets 5,950.5 5,674.8 5,739.5 5,423.2
LIABILITIES
-----------
Commercial Paper 787.0 785.8 784.6 789.3
Bank and Other Entities Loans 3,079.3 2,893.7 2,857.1 2,832.7
Other Accounts Payable 220.9 205.2 395.5 256.5
Total Liabilities 4,087.1 3,884.7 4,037.2 3,878.5
STOCKHOLDERS' EQUITY
--------------------
Capital Stock 148.6 148.6 148.6 148.6
Additional Paid-In Capital 726.4 727.9 727.9 733.1
Capital Reserves 12.6 12.6 12.6 13.6
Retained Earnings 460.5 545.8 559.2 532.1
Net Income for the Year 515.2 355.2 254.0 117.2
Minority Interest - - - -
Total Stockholders' Equity 1,863.3 1,790.1 1,702.3 1,544.6
Total Liabilities and
Stockholders' Equity 5,950.5 5,674.8 5,739.5 5,423.2
4Q08 3Q08 2Q08 1Q08 4Q07
-------- -------- -------- -------- --------
ASSETS
------
Cash 134.3 108.7 81.9 76.5 99.9
Investments in Securities 209.5 52.1 121.3 84.9 143.3
Cash and Cash Equivalents 343.9 160.8 203.2 161.4 243.1
Performing Loans 3,913.0 3,802.9 3,476.2 3,209.2 3,012.1
Non-Performing Loans 560.8 446.1 438.4 379.1 338.8
Total Loan Portfolio 4,473.8 4,249.0 3,914.6 3,588.3 3,350.9
Allowances for Loan
Losses (350.6) (287.9) (295.4) (265.2) (213.9)
Total Loan Portfolio
- Net 4,123.2 3,961.1 3,619.2 3,323.0 3,137.0
Other Accounts
Receivables - Net 282.6 115.6 86.1 76.7 43.8
Property, Plant &
Equipment - Net 256.0 227.8 206.4 187.3 172.1
Deferred Income Tax 321.3 274.2 230.1 199.5 154.6
Other Assets 60.4 67.5 63.1 46.1 39.6
Total Assets 5,387.4 4,806.9 4,408.1 3,994.0 3,790.2
LIABILITIES
-----------
Commercial Paper 787.7 786.5 784.9 - -
Bank and Other Entities
Loans 2,826.4 1,560.1 1,236.9 1,642.4 1,336.0
Other Accounts Payable 370.5 486.6 598.3 197.7 232.5
Total Liabilities 3,984.6 2,833.2 2,620.0 1,840.1 1,568.5
STOCKHOLDERS' EQUITY
--------------------
Capital Stock 148.6 153.6 153.6 153.6 153.6
Additional Paid-In
Capital 813.9 1,433.5 1,457.7 1,640.1 1,640.1
Capital Reserves 13.6 13.6 13.6 71.8 71.8
Retained Earnings (196.2) (129.8) (215.6) 91.7 (218.1)
Net Income for the Year 622.9 502.8 378.7 196.7 574.3
Minority Interest - - - - -
Total Stockholders'
Equity 1,402.8 1,973.7 1,788.0 2,153.9 2,221.7
Total Liabilities and
Stockholders' Equity 5,387.4 4,806.9 4,408.1 3,994.0 3,790.2
4Q09 vs 4Q08
----------------
Absolute %
---------- -
ASSETS
------
Cash (5.0) (3.7%)
Investments in Securities 160.0 76.4%
Cash and Cash Equivalents 155.0 45.1%
Performing Loans 323.1 8.3%
Non-Performing Loans 15.3 2.7%
Total Loan Portfolio 338.4 7.6%
Allowances for Loan Losses (72.3) 20.6%
Total Loan Portfolio - Net 266.1 6.5%
Other Accounts Receivables - Net (171.0) (60.5%)
Property, Plant & Equipment - Net 47.3 18.5%
Deferred Income Tax 251.3 78.2%
Other Assets 14.4 23.8%
Total Assets 563.1 10.5%
LIABILITIES
-----------
Commercial Paper (0.7) (0.1%)
Bank and Other Entities Loans 252.9 8.9%
Other Accounts Payable (149.6) (40.4%)
Total Liabilities 102.6 2.6%
STOCKHOLDERS' EQUITY
--------------------
Capital Stock - 0.0%
Additional Paid-In Capital (87.4) (10.7%)
Capital Reserves (1.0) (7.4%)
Retained Earnings 656.7 (334.7%)
Net Income for the Year (107.7) (17.3%)
Minority Interest - n/a
Total Stockholders' Equity 460.6 32.8%
Total Liabilities and Stockholders' Equity 563.1 10.5%
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.
Consolidated Income Statement For the Twelve Months Periods
December 31, 2009 and 2008
(Millions of Mexican Pesos)
4Q09 3Q09 2Q09 1Q09
-------- -------- -------- --------
Interest Income 827.0 782.9 756.0 744.7
Interest Expense 77.5 73.5 81.3 95.0
Monetary Loss - Net - - - -
Financial Margin 749.5 709.3 674.7 649.7
Provision for Loan Losses 281.7 320.3 270.1 202.1
Financial Margin After Provision
for Loan Losses 467.8 389.0 404.7 447.6
Commissions and Fees Collected 192.7 196.3 195.0 168.6
Commissions and Fees Paid 3.6 2.9 2.8 3.4
Market Related Income - - - -
Other income (expense) of the
operation 29.2 - - -
Net Operating Revenue 686.1 582.3 596.9 612.8
Non-Interest Expense 508.9 452.7 417.3 461.6
Net Operating Income 177.2 129.7 179.5 151.3
Other Income (expense) - Net (7.6) 10.2 7.5 8.2
Total Income Before Income Tax
and Employees' Statutory Profit
Sharing 169.6 139.8 187.1 159.5
Income Tax and Employees'
Statutory Profit Sharing
Current 138.2 60.5 112.5 81.5
Deferred (128.7) (21.8) (62.3) (39.3)
Total Income Before Minority
Interest 160.1 101.1 136.8 117.2
Minority Interest - - - -
Net Income 160.1 101.1 136.8 117.2
Weighted Average Number of Shares 643.9 630.0 630.0 630.0
EPS 0.2486 0.1605 0.2172 0.1861
4Q08 3Q08 2Q08 1Q08 4Q07
-------- -------- -------- -------- --------
Interest Income 771.0 698.7 635.7 610.5 596.8
Interest Expense 86.7 59.9 46.9 38.0 43.3
Monetary Loss - Net - - - - (20.9)
Financial Margin 684.3 638.9 588.8 572.5 532.6
Provision for Loan Losses 218.4 183.8 173.6 125.3 107.8
Financial Margin After
Provision for Loan
Losses 465.8 455.1 415.2 447.2 424.8
Commissions and Fees
Collected 196.2 188.5 197.9 168.7 167.0
Commissions and Fees Paid 3.7 1.6 2.8 2.0 0.3
Market Related Income - - - - -
Other income (expense)
of the operation 9.1 - - - 19.0
Net Operating Revenue 667.5 642.0 610.3 613.9 610.5
Non-Interest Expense 481.1 454.1 401.3 366.9 327.7
Net Operating Income 186.4 187.9 209.0 247.0 282.8
Other Income (expense)
- Net (2.2) 7.5 3.6 5.0 9.5
Total Income Before Income
Tax and Employees'
Statutory Profit Sharing 184.2 195.4 212.6 252.0 292.3
Income Tax and Employees'
Statutory Profit Sharing
Current 89.1 87.0 92.7 92.1 99.0
Deferred (25.1) (15.8) (62.0) (36.9) (6.5)
Total Income Before
Minority Interest 120.2 124.1 181.9 196.7 199.7
Minority Interest - - - - -
Net Income 120.2 124.1 181.9 196.7 199.7
Weighted Average Number
of Shares 633.8 680.0 680.0 680.0 680.0
EPS 0.1896 0.1825 0.2676 0.2893 0.2937
4Q09 vs 4Q08
----------------
Absolute %
-------- -
Interest Income 56.1 7.3%
Interest Expense (9.2) (10.6%)
Monetary Loss - Net - n/a
Financial Margin 65.2 9.5%
Provision for Loan Losses 63.2 28.9%
Financial Margin After Provision for Loan Losses 2.0 0.4%
Commissions and Fees Collected (3.5) (1.8%)
Commissions and Fees Paid (0.1) (2.2%)
Market Related Income - n/a
Other income (expense) of the operation 20.1 220.6%
Net Operating Revenue 18.7 2.8%
Non-Interest Expense 27.9 5.8%
Net Operating Income (9.2) (4.9%)
Other Income (expense) - Net (5.4) 242.7%
Total Income Before Income Tax and Employees' Statutory
Profit Sharing (14.6) (7.9%)
Income Tax and Employees' Statutory Profit Sharing
Current 49.0 55.0%
Deferred (103.5) 411.9%
Total Income Before Minority Interest 39.9 33.2%
Minority Interest - n/a
Net Income 39.9 33.2%
Weighted Average Number of Shares 10.1 1.6%
EPS 0.0590 31.1%
12M09 12M08 Absolute %
--------- --------- ---------- -
Interest Income 3,110.6 2,715.8 394.7 14.5%
Interest Expense 327.3 231.4 95.9 41.4%
Monetary Loss - Net - - - n/a
Financial Margin 2,783.2 2,484.4 298.8 12.0%
Provision for Loan Losses 1,074.2 701.1 373.1 53.2%
Financial Margin After Provision
for Loan Losses 1,709.1 1,783.3 (74.2) (4.2%)
Commissions and Fees Collected 752.6 751.4 1.2 0.2%
Commissions and Fees Paid 12.7 10.1 2.6 25.9%
Market Related Income - - - n/a
Other income (expense) of the
operation 29.2 9.1 20.1 220.6%
Net Operating Revenue 2,478.1 2,533.7 (55.5) (2.2%)
Non-Interest Expense 1,840.5 1,703.4 137.0 8.0%
Net Operating Income 637.7 830.2 (192.6) (23.2%)
Other Income (expense) - Net 18.3 13.9 4.4 31.9%
Total Income Before Income Tax
and Employees' Statutory Profit
Sharing 655.9 844.1 (188.1) (22.3%)
Income Tax and Employees' Statutory
Profit Sharing
Current 392.8 361.0 31.8 8.8%
Deferred (252.1) (139.8) (112.3) 80.3%
Total Income Before Minority
Interest 515.2 622.9 (107.7) (17.3%)
Minority Interest - - - n/a
Net Income 515.2 622.9 (107.7) (17.3%)
Weighted Average Number of Shares 633.5 668.4 (34.9) (5.2%)
EPS 0.8133 0.9320 (0.1187) (12.7%)
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.
Key Ratios & Operating Data
For the Twelve Months Periods Ended December 31, 2009 and 2008
(Millions of Mexican Pesos)
4Q09 3Q09 4Q08 QoQ % YoY %
---- ---- ---- ----- -----
Key Ratios
Profitability & Efficiency
NIM after Provisions Excl.
Fees (1) 35.9% 30.7% 40.4% 5.2 pp -4.5 pp
NIM after Provisions
Incl. Fees (2) 52.7% 46.0% 57.9% 6.7 pp -5.2 pp
Provisions / Financial
Margin 37.6% 45.2% 31.9% -7.6 pp 5.7 pp
ROAA (3) 11.0% 7.1% 9.4% 3.9 pp 1.6 pp
ROAE (4) 35.0% 23.2% 28.5% 11.9 pp 6.6 pp
Efficiency Ratio Incl.
Provisions (5) 74.2% 77.7% 72.1% -3.6 pp 2.1 pp
Efficiency Ratio Excl.
Provisions (6) 52.6% 50.1% 54.3% 2.4 pp -1.7 pp
Operating Efficiency (7) 35.0% 31.7% 37.8% 3.3 pp -2.7 pp
Fee Income (8) 27.6% 33.2% 28.8% -5.6 pp -1.3 pp
-------------- ---- ---- ---- ------- -------
Capitalization
Equity to Total Assets 31.3% 31.5% 26.0% -0.2 pp 5.3 pp
---------------------- ---- ---- ---- ------- ------
Credit Quality Ratios
NPL Ratio (9) 12.0% 12.5% 12.5% -0.5 pp -0.6 pp
Coverage Ratio (10) 73.4% 70.9% 62.5% 2.5 pp 10.9 pp
------------------- ---- ---- ---- ------ -------
Operating Data
Number of Clients 1,236,092 1,215,609 1,085,963 1.7% 13.8%
- Formal Sector 750,374 740,133 687,464 1.4% 9.2%
- Informal Sector 485,718 475,476 398,499 2.2% 21.9%
Number of Offices 199 198 192 0.5% 3.6%
Total Labor Force 9,643 9,586 10,124 0.6% -4.8%
- Full Time Personnel 9,515 9,412 9,695 1.1% -1.9%
- Independent Sales
Agents 128 174 429 -26.4% -70.2%
12M09 12M08 %
----- ----- -
Key Ratios
Profitability & Efficiency
NIM after Provisions Excl. Fees (1) 33.7% 42.4% -8.7 pp
NIM after Provisions Incl. Fees (2) 48.9% 60.2% -11.3 pp
Provisions / Financial Margin 38.6% 28.2% 10.4 pp
ROAA (3) 9.1% 13.6% -4.5 pp
ROAE (4) 31.5% 34.4% -2.8 pp
Efficiency Ratio Incl. Provisions (5) 74.3% 67.2% 7 pp
Efficiency Ratio Excl. Provisions (6) 51.8% 52.7% -0.9 pp
Operating Efficiency (7) 32.5% 37.1% -4.7 pp
Fee Income (8) 29.9% 29.3% 0.6 pp
-------------- ---- ---- ------
Capitalization
Equity to Total Assets 31.3% 26.0% 5.3 pp
---------------------- ---- ---- ------
Credit Quality Ratios
NPL Ratio (9) 12.0% 12.5% -0.6 pp
Coverage Ratio (10) 73.4% 62.5% 10.9 pp
------------------- ---- ---- -------
Operating Data
Number of Clients 1,236,092 1,085,963 13.8%
- Formal Sector 750,374 687,464 9.2%
- Informal Sector 485,718 398,499 21.9%
Number of Offices 199 192 3.6%
Total Labor Force 9,643 10,124 -4.8%
- Full Time Personnel 9,515 9,695 -1.9%
- Independent Sales Agents 128 429 -70.2%
------------------------------- --- --- -----
(1) Net Interest Margin after Provisions (excluding Fees): Net Interest
Margin after Provision for Loan Losses / Average Interest-Earning
Assets
(2) Net Interest Margin after Provisions (including Fees): Net Interest
Margin after Provision for Loan Losses + Fees Collected - Fees
Paid / Average Interest-Earning Assets
(3) ROAA: Net Income / Average Total Assets
(4) ROAE: Net Income / Average Total Equity
(5) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues
(6) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues +
Provision for Loan Losses
(7) Operating Efficiency: Non-interest Expense / Average Assets
(8) Commissions and Fees (Net) / Net Operating Revenue
(9) NPL Ratio: Non-Performing Loans / Total Loan Portfolio
(10) Coverage Ratio: Allowances for Loan Losses / Non-Performing Loans
SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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