FINDEP delivers Net Income of Ps.78.4 million, a 19.2% YoY growth, and a NPL ratio of 6.2%, a new record low in the Company's history[1]

MEXICO CITY, Oct. 23, 2014 /PRNewswire/ --

• Loan Portfolio of Ps.7,018.5 million, a 3.1% 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 51.2% in 3Q14, a 99 bps increase when compared to 3Q13; which highlights the ongoing efficiencies of the Company's new business model.
• Non-performing loans (NPLs) decreased by 1.9% YoY and the NPL Ratio decreased by 32 bps to 6.2% in 3Q14; a new historic low that underscores the success of the Company's new operating policies.
• Write Offs increased by 3.5% YoY, to Ps.361.3 million in 3Q14.
• The average effective lending rate increased by 68 bps to 72.3% in 3Q14 versus 3Q13; reflecting the higher participation of Independencia and Finsol Mexico in the Company's loan portfolio mix. The average funding cost decreased by 149 bps to 9.49% during the same period.
• Equity to total assets of 31.0%, a 159 bps improvement versus 3Q13.
• ROAE in 3Q14 was 9.5%, a 59 bps improvement when compared to 8.9% in 3Q13.

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 nine-months periods ended September 30^th, 2014.

Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "I am glad to report that Financiera Independencia delivered solid quarterly results, marking the 7^th consecutive quarter of consistent and solid profitability, and putting us at over 75% of our net earnings goal for the full year.

In line with our focus on quality over size, loan portfolio grew by 3.1% YoY while NPLs contracted by 1.9% to reach an NPL Ratio of 6.2%, a new historic low in the Company's history. Among other things, this allowed us to deliver a net income for the quarter of Ps.78.4 million, a solid 19.2% YoY growth versus 3Q13.

For two consecutive quarters now, profitability has been delivered across practically all of the Company's subsidiaries. Independencia, Finsol Mexico, Finsol Brazil and AEF had positive contribution to the Group's net earnings, while AFI's contribution remained negative as we continue investing in its growth.

Furthermore, except for the case of Finsol Brazil, all subsidiaries experienced loan portfolio growth, higher average loan balances per client, and notable improvements on portfolio quality. We expect Finsol Brazil to also resume growth and improved portfolio indicators after the presidential elections in that country are over."

3Q14 EARNINGS CONFERENCE CALL

Day:                       Friday October 24^th, 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:         23448107

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 October 24^th and ending at 11:59 pm EST on October
                              29^th, 2014. The replay will be accessible by dialing 855-859-2056 (U.S./Canada)
                              or 404-537-3406 (international) and entering pass code 23448107.

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 September 30^th, 2014, FINDEP had a total outstanding loan balance of Ps.7,018.5 million, operated 570 offices in Mexico, Brazil, and the US and had a total labor force of 11,688 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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/findep-delivers-net-income-of-ps784-million-a-192-yoy-growth-and-a-npl-ratio-of-62-a-new-record-low-in-the-companys-history1-989357514.html

SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.

Related Links

http://www.findep.mx