FINDEP's 2Q15 Net Income of Ps.38.7 million, marks 10th consecutive quarter of consistent profitability[1]

MEXICO CITY, July 23, 2015 /PRNewswire/ --

• Loan Portfolio of Ps.6,976.1 million, a 2.1% increase YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.
• NPL Ratio of 7.3%, below the industry's average and the Company's target of 7.5%.
• NIM² After Provisions including fees was 48.1% in 2Q15, a 189 bps decrease versus 2Q14.
• Net Income of Ps.38.7 million, the 10^th consecutive quarter of consistent profitability.
• The Average Effective Lending Rate decreased by 74 bps to 69.1% in 2Q15 versus 2Q14. The Average Funding Cost decreased by 121 bps to 8.88% during the same period.
• Equity to Total Assets of 32.1%, a 179 bps improvement versus 2Q14.
• ROAE in 2Q15 was 4.3%, versus 7.8% in 2Q14.

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 30^th, 2015.

Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said: "In 2Q15 Financiera Independencia delivered its 10^th consecutive quarter of positive net income generation since the implementation of the new strategy in September 2012.

The Company delivered solid results on most financial metrics, including:

• Net Interest Margin before Provisions and Fees of 56.7%, a 144 bps increase YoY
• Net Income of Ps.38.7 million, the 10^th consecutive quarter of consistent profitability
• NPL Ratio of 7.3%, a 54 bps increase YoY but still below the Company's 7.5% target and the Industry's average, and
• A stronger Capitalization Ratio of 32.1%, a 179 bps YoY growth.

Notwithstanding, during 1H15 both loan portfolio growth and net income have come below our expectations.

Regarding Portfolio Growth, as in recent quarters, Financiera Independencia continues to face severe economic environments in its two largest markets, Mexico and Brazil –which concentrate over 92% of our loan portfolio.

Regarding Net Income, it was very negatively impacted during 1H15 by an abnormal increase in Provisions for Loan Losses at our Independencia subsidiary. This was an isolated problem however, for which we believe we've identified and corrected the source of the abnormality. This correction has already bore fruit, with a 25% reduction in Provisions for Loan Losses from May to June.

We remain fully confident that our current strategic focus, business model and operating policies are the right ones for the long-term performance and success in the personal microfinance industry. By maintaining our disciplined focus on quality and profitability we will continue to endure the challenging economic environment, and, once it improves, we will soon return to the Company's historical profitability levels."

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 30^th, 2015, FINDEP had a total outstanding loan balance of Ps.6,976.1 million, operated 563 offices in Mexico, Brazil, and the US and had a total labor force of 11,137 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 2015 and 2014 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.

Related Links

http://www.findep.mx