FINDEP delivers Net Income of Ps.63.1 million, a 12.1% YoY growth, and an NPL ratio of 6.7%, a 57 bps contraction YoY(1)
MEXICO CITY, July 24, 2014 /PRNewswire/ --
- Loan Portfolio of Ps.6,832.6 million, a 3.7% increase YoY, consistent with the Company's current strategic focus of prioritizing portfolio quality and profitability over size.
- NIM(2) after provisions including fees was 50.0% in 2Q14, a 225 bps decrease when compared to 2Q13; which partly reflects the Company's decision to register the recovery of its written-off loans from 3Q13 at the Other Operating Income line, instead of in the Provision for Loan Losses line. It also reflects a slight increase in provisions for loan losses that is consistent with the Company's expectations for this second quarter.
- Non-performing loans (NPLs) decreased by 4.4% YoY and the NPL Ratio decreased by 57 bps to 6.7% in 2Q14; which underscores the success of the Company's new operating policies.
- Write Offs decreased by 5.9% YoY, to Ps.285.3 million in 2Q14.
- The average effective lending rate decreased by 84 bps to 69.8% in 2Q14 versus 2Q13; reflecting the changes in the Company's loan portfolio mix. The average funding cost decreased by 85 bps to 10.09% in the same period.
- Equity to total assets of 30.3%, a 75 bps improvement versus 2Q13.
- ROAE in 2Q14 was 7.8%, a 9 bps improvement when compared to 7.7% in 2Q13.
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP; OTC: FNCRY), ("FINDEP" or the "Company") a leading Mexican microfinance lender of personal loans to lower income segment individuals and working capital loans through group lending microfinance, announces results for the three and six-months periods ended June 30th, 2014.
| Financial & Operational Highlights |
|||||||
| 2Q14 |
2Q13 |
% |
6M14 |
6M13 |
% |
||
| Income Statement Data |
|||||||
| Net Interest Income after Provisions* |
679.5 |
738.2 |
-8.0% |
1425.8 |
1,497.8 |
-4.8% |
|
| Net Operating Income (Loss)* |
91.2 |
81.8 |
11.5% |
228.0 |
155.0 |
47.0% |
|
| Net Income (Loss)* |
63.1 |
56.3 |
12.1% |
163.8 |
107.0 |
53.0% |
|
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
|
| Earnings (Loss) Per Share |
0.0881 |
0.0786 |
12.1% |
0.2288 |
0.1495 |
53.0% |
|
| Profitability & Efficiency |
|||||||
| NIM before Provisions Excl. Fees |
55.2% |
55.5% |
-0.3 pp |
55.1% |
56.0% |
-1 pp |
|
| NIM after Provisions Excl. Fees |
37.1% |
41.8% |
-4.7 pp |
38.6% |
42.4% |
-3.7 pp |
|
| NIM after Provisions Incl. Fees |
50.0% |
52.2% |
-2.3 pp |
50.7% |
52.6% |
-1.9 pp |
|
| ROA |
2.4% |
2.3% |
0.1 pp |
3.1% |
2.1% |
1 pp |
|
| ROE |
7.8% |
7.7% |
0.1 pp |
10.4% |
7.4% |
3 pp |
|
| Efficiency Ratio Incl. Provisions |
90.0% |
91.1% |
-1.1 pp |
87.8% |
91.7% |
-3.8 pp |
|
| Efficiency Ratio Excl. Provisions |
66.1% |
72.2% |
-6.1 pp |
66.4% |
72.8% |
-6.4 pp |
|
| Operating Efficiency |
31.4% |
33.8% |
-2.4 pp |
31.3% |
34.1% |
-2.8 pp |
|
| Fee Income |
16.6% |
15.1% |
1.6 pp |
14.9% |
15.1% |
-0.2 pp |
|
| Capitalization |
|||||||
| Equity to Total Assets |
30.3% |
29.5% |
0.7 pp |
30.3% |
29.5% |
0.7 pp |
|
| Credit Quality Ratios |
|||||||
| NPL Ratio |
6.7% |
7.3% |
-0.6 pp |
6.7% |
7.3% |
-0.6 pp |
|
| Coverage Ratio |
100.0% |
101.8% |
-1.8 pp |
100.0% |
101.8% |
-1.8 pp |
|
| Operational Data |
|||||||
| Number of Clients |
1,096,147 |
1,176,630 |
-6.8% |
1,096,147 |
1,176,630 |
-6.8% |
|
| Number of Offices |
568 |
546 |
4.0% |
568 |
546 |
4.0% |
|
| Total Loan Portfolio* |
6,832.6 |
6,585.9 |
3.7% |
6,832.6 |
6,585.9 |
3.7% |
|
| Average Balance (Ps.) |
6,233.3 |
5,597.2 |
11.4% |
6,233.3 |
5,597.2 |
11.4% |
|
| * Figures in millions of Mexican Pesos. |
Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "This marks our 6th consecutive quarter of solid profitability, underscoring the strong performance under our new strategy and putting us at over 50% of our goal for the full year.
"The robust performance was consistent across all of the Company's subsidiaries. Independencia, Finsol Mexico, Finsol Brasil and AEF had positive contribution to the Group's profitability this quarter, while AFI's contribution remained negative as we continue investing in its growth.
"This allowed us to reach a net income for the quarter of Ps.63.1 million, a solid 12.1% YoY growth versus 2Q13 and which is consistent with our expectations given the seasonality that our industry experiences during the 2nd quarters of each year.
"In line with this strong performance, loan portfolio accelerated by 3.7% YoY –our highest growth rate in over 18 months— while NPLs contracted by 4.4% to reach an NPL Ratio of 6.7%, one of the lowest in our history."
| 2Q14 EARNINGS CONFERENCE CALL |
|
| Day: |
Friday July 25th, 2014 |
| Time: |
11:00 AM US EST; 10:00 AM Mexico City time |
| Dial-in number: |
877-314-5894 (US & Canada) |
| 631-291-4620 (International & Mexico) |
|
| Access Code: |
67534563 |
| Web cast: |
A live web cast of the conference call and replay will be available at www.findep.mx |
| Replay: |
Starting at 2:00 pm EST on July 25th and ending at 11:59 pm EST on July 30th, 2014. The replay will be accessible by dialing 855-859-2056 (U.S./Canada) or 404-537-3406 (international) and entering pass code 67534563. |
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 self-employed economy. As of June 30th, 2014, FINDEP had a total outstanding loan balance of Ps.6,832.6 million, operated 568 offices in Mexico, Brazil, and the US and had a total labor force of 11,597 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". On November 30, 2009 FINDEP launched a sponsored Level I American Depositary Receipt (ADR) program in the United States. Each ADR represents 15 shares of FINDEP common stock and trades over-the-counter (OTC). More information can be found at www.findep.mx
Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in FINDEP's filings with the Mexican Stock Exchange. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.
To obtain the full text of this earnings release, please visit our Investor Relations website at www.findep.mx under the Financial Information / Quarterly Reports section.
(1) All financial figures discussed in this earnings release are unaudited and prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. / Figures for 2014 and 2013 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.
(2) NIM: Net Interest Income for the quarter annualized / Average Productive Assets (Cash & Equivalents + Loan Portfolio) for the current and previous quarters
SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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