FINDEP's 1Q16 Net Income of Ps.53.0 million marks 13th consecutive quarter of consistent profitability, and NPL of 6.0%[1], a new best for the Company in 20 years

Latin America - español

Loan Portfolio of Ps.6,889.1 million[2], a 0.3% decrease YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.

NPL Ratio of 6.0%[3], 90 bps lower than in 1Q15 and well below the industry's average and the Company's target of 7.5% for 2016. This is the lowest NPL for the Company in the last 20 years.

NIM[4] After Provisions including fees was 46.2% in 1Q16, a 352 bps decrease YoY.

Net Income of Ps.53.0 million, an 11.7%% decrease vs. 1Q15.

The Average Effective Lending Rate decreased by 256 bps to 66.4%[5] in 1Q16 versus 1Q15, mostly due to the 62.3% YoY increase of Findep's loan portfolio in USA, which commands a lower Lending Rate. The Average Funding Cost increased by 11 bps to 9.40% during the same period.

Equity to Total Assets of 33.5%, a 114 bps improvement versus 1Q15.

ROAE in 1Q16 was 5.5%, versus 6.7% in 1Q15.

News provided by

Financiera Independencia

Apr 21, 2016, 09:13 ET

MEXICO CITY, April 21, 2016 /PRNewswire/ -- 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 months period ended March 31^st, 2016.

Financial & Operational Highlights
	1Q16	1Q15	%	3M16 3M15		%
Income Statement Data
Net Interest Income after Provisions*	713.0	714.1	-0.2%	713.0	714.1	-0.2%
Net Operating Income (Loss)*	76.9	88.1	-12.6%	76.9	88.1	-12.6%
Net Income (Loss)*	53.0	60.1	-11.7%	53.0	60.1	-11.7%
Total Shares Outstanding (million)	715.9	715.9	0.0%	715.9	715.9	0.0%
Earnings (Loss) Per Share	0.0741	0.0840	-11.7%	0.0741	0.0840	-11.7%
Profitability & Efficiency
NIM before Provisions Excl. Fees	53.0%	56.4%	-3.5 pp	53.0%	56.4%	-3.5 pp
NIM after Provisions Excl. Fees	37.6%	38.4%	-0.9 pp	37.6%	38.4%	-0.9 pp
NIM after Provisions Incl. Fees	46.2%	49.7%	-3.5 pp	46.2%	49.7%	-3.5 pp
ROA	1.8%	2.2%	-0.4 pp	1.8%	2.2%	-0.4 pp
ROE	5.5%	6.7%	-1.2 pp	5.5%	6.7%	-1.2 pp
Efficiency Ratio Incl. Provisions	91.2%	90.5%	0.8 pp	91.2%	90.5%	0.8 pp
Efficiency Ratio Excl. Provisions	68.4%	66.4%	2 pp	68.4%	66.4%	2 pp
Operating Efficiency	27.2%	30.0%	-2.8 pp	27.2%	30.0%	-2.8 pp
Fee Income	11.8%	14.2%	-2.5 pp	11.8%	14.2%	-2.5 pp
Capitalization
Equity to Total Assets	33.5%	32.4%	1.1 pp	33.5%	32.4%	1.1 pp
Credit Quality Ratios
NPL Ratio	6.0%	6.9%	-0.9 pp	6.0%	6.9%	-0.9 pp
Coverage Ratio	100.0%	100.0%	0 pp	100.0%	100.0%	0 pp
Operational Data
Number of Clients	1,000,752	1,069,133	-6.4%	1,000,752	1,069,133	-6.4%
Number of Offices	561	571	-1.8%	561	571	-1.8%
Total Loan Portfolio*	6,889.1	6,909.0	-0.3%	6,889.1	6,909.0	-0.3%
Average Balance (Ps.)**	6,763.8	6,462.2	4.7%	6,763.8	6,462.2	4.7%
* Figures in millions of Mexican Pesos.
** Excludes Other Loans from the average calculation

Commenting on the results, Noel González, Executive Vice President and Group CEO, said: "In 1Q16 Financiera Independencia again delivered solid quarterly results. It is important to highlight that the Company's NPL Ratio for this quarter was 6.0%, the lowest for us in the last 20 years, and reflecting the success of the Company's new operating policies and their disciplined implementation.

In this context, I would like to highlight the following achievements for 1Q16:

Loan Portfolio contracted by 0.3%YoY, yet, as I just mentioned, the Company's NPL Ratio came down a further 90 bps to 6.0%; well below the Company's 7.5% target and the Industry's average
As a result, Net Income was Ps.53.0 million, a 11.7% contraction YoY but a solid 13.1% growth on a sequential basis
Furthermore, the Company's Operating Efficiency improved once again by 279 bps to 27.2%, and
Our Capitalization ratio grew 114 bps to 33.5%.

Our results underscore the success of Financiera Independencia's focus on quality and profitability, and the competitive advantage obtained by transforming itself over the past few years into a well-diversified group with 5 subsidiaries, operations in 3 countries, and an increasing variety of products and services."

1Q16 EARNINGS CONFERENCE CALL

Day: Friday, April 22^nd, 2016

Time: 11:00 AM US EST; 10:00 AM Mexico City time

Dial-in number: 888-576-4387 (US & Canada)
719-457-1035 (International & Mexico)

Access Code: 1860440

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 April 22^nd and ending at 11:59 pm EST on April
                              29^th, 2016. The replay will be accessible by dialing 877-870-5176
                              (U.S./Canada) or 858-384-5517 (international) and entering passcode
                              1860440.

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 March 31^st, 2016, FINDEP had a total outstanding loan balance of Ps.6,889.1 million, operated 561 offices in Mexico, Brazil, and the US and had a total labor force of 10,128 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 audited and prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. / Figures for 2016 and 2015 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] It includes Ps.120.2 million of Other Loans. If, this loan portfolio is not considered, the Company's loan portfolio would have contracted by 2.0% YoY.

[3] If Other Loans are not considered, NPL would be 6.1%, 80 bps lower YoY.

[4] NIM: Net Interest Income for the quarter annualized / Average Productive Assets (Cash & Equivalents + Loan Portfolio) for the current and previous quarters

[5] Average lending rate without considering Other Loans would be 67.0%, 198 pbs lower YoY.