FINDEP's 2Q16 Net Income of Ps.40.2 Million, a 3.8% Increase YoY, and NPL of 5.7%(1), 160 bps lower YoY
- Loan Portfolio of Ps.7,014.2 million2, a 0.5% increase YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.
- NPL Ratio of 5.7%, 160 bps lower than in 2Q15 and well below the industry's average and the Company's target of 7.5% for 2016.
- NIM3 After Provisions including fees was 46.9% in 2Q16, a 119 bps decrease YoY.
- Net Income of Ps.40.2 million, a 3.8% increase vs. 2Q15.
- The Average Effective Lending Rate decreased by 343 bps to 65.6% in 2Q16 versus 2Q15, mostly due to the 57.8% YoY increase of Findep's loan portfolio in USA, which commands a lower Lending Rate. The Average Funding Cost increased by 56 bps to 9.46% during the same period.
- Equity to Total Assets of 33.3%, a 123 bps improvement versus 2Q15.
- ROAE in 2Q16 was 4.0%, versus 4.3% in 2Q15.
MEXICO CITY, July 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 and six months periods ended June 30th, 2016.
| Financial & Operational Highlights |
||||||||
| 2Q16 |
2Q15 |
% |
6M16 |
6M15 |
% |
|||
| Income Statement Data |
||||||||
| Net Interest Income after Provisions* |
695.8 |
672.5 |
3.5% |
1,408.8 |
1,386.6 |
1.6% |
||
| Net Operating Income (Loss)* |
63.5 |
56.3 |
12.7% |
140.4 |
144.4 |
-2.8% |
||
| Net Income (Loss)* |
40.2 |
38.7 |
3.8% |
93.2 |
98.8 |
-5.7% |
||
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
||
| Earnings (Loss) Per Share |
0.0561 |
0.0540 |
3.8% |
0.1302 |
0.1380 |
-5.7% |
||
| Profitability & Efficiency |
||||||||
| NIM before Provisions Excl. Fees |
52.2% |
56.7% |
-4.5 pp |
52.0% |
55.9% |
-4 pp |
||
| NIM after Provisions Excl. Fees |
37.0% |
36.4% |
0.5 pp |
36.8% |
37.0% |
-0.2 pp |
||
| NIM after Provisions Incl. Fees |
46.9% |
48.1% |
-1.2 pp |
46.0% |
48.4% |
-2.4 pp |
||
| ROA |
1.3% |
1.4% |
0 pp |
1.6% |
1.8% |
-0.2 pp |
||
| ROE |
4.0% |
4.3% |
-0.2 pp |
4.8% |
5.5% |
-0.8 pp |
||
| Efficiency Ratio Incl. Provisions |
92.8% |
93.7% |
-0.8 pp |
92.0% |
92.0% |
0 pp |
||
| Efficiency Ratio Excl. Provisions |
70.1% |
65.9% |
4.2 pp |
69.2% |
66.2% |
3.1 pp |
||
| Operating Efficiency |
27.5% |
29.6% |
-2.1 pp |
27.1% |
29.8% |
-2.7 pp |
||
| Fee Income |
12.7% |
14.8% |
-2.1 pp |
12.2% |
14.5% |
-2.3 pp |
||
| Capitalization |
||||||||
| Equity to Total Assets |
33.3% |
32.1% |
1.2 pp |
33.3% |
32.1% |
1.2 pp |
||
| Credit Quality Ratios |
||||||||
| NPL Ratio |
5.7% |
7.3% |
-1.6 pp |
5.7% |
7.3% |
-1.6 pp |
||
| Coverage Ratio |
100.0% |
100.0% |
0 pp |
100.0% |
100.0% |
0 pp |
||
| Operational Data |
||||||||
| Number of Clients |
985,901 |
1,058,268 |
-6.8% |
985,901 |
1,058,268 |
-6.8% |
||
| Number of Offices |
566 |
563 |
0.5% |
566 |
563 |
0.5% |
||
| Total Loan Portfolio* |
7,014.2 |
6,976.1 |
0.5% |
7,014.2 |
6,976.1 |
0.5% |
||
| Average Loan Balance (Ps.)** |
7,004.0 |
6,592.0 |
6.3% |
7,004.0 |
6,592.0 |
6.3% |
||
| * 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 2Q16 Financiera Independencia delivered quarterly results consistent with its strategic focus of prioritizing loan portfolio quality and profitability over size. Though we must acknowledge that earnings during the 1st half of 2016 have been pressured, it is also important to highlight that we are pleased with the Company's accomplishment in strengthening its loan portfolio quality; as the NPL Ratio for this quarter was 5.7%, the lowest level in over 7 years.
Our results underscore the success of Financiera Independencia's focus on quality and profitability, as well as the competitive advantage obtained over the past years by transforming itself into a well-diversified group with 5 subsidiaries, operations in 3 countries, and an increasing variety of products and services. A group more solid than the sum of its individual parts, in which the performance in one subsidiary may be offset by the performance of another, allowing for a more balanced and predictable overall result.
To put this competitive advantage into context, let me highlight that though loan portfolio and earnings growth came below expectations, if we exclude Independencia, the Company's loan portfolio growth was 20.2% YoY and its NPL ratio was of only 3.9%, a remarkable performance of the other subsidiaries."
| 2Q16 EARNINGS CONFERENCE CALL |
|
| Day: |
Friday, July 22nd, 2016 |
| Time: |
11:00 AM US EST; 10:00 AM Mexico City time |
| Dial-in number: |
888-510-1786 (US & Canada) |
| Access Code: |
7964221 |
| 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 22nd and ending at 11:59 pm EST on July 29th, 2016. The replay will be accessible by dialing 877-870-5176 (U.S./Canada) or 858-384-5517 (international) and entering passcode 7964221. |
About Financiera Independencia:
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (FINDEP), is a Mexican institution that provides microcredit loans on an unsecured basis to individuals in the low-income segments in urban areas of both the formal and self-employed economy and working capital loans through group lending microfinance in rural areas. As of June 30th, 2016, FINDEP had a total outstanding loan balance of Ps.7,014.2 million, operated 566 offices in Mexico, Brazil, and the US and had a total labor force of 10,081 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". On November 30th, 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 non-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.108.9 million of Other Loans. If, this loan portfolio is not considered, the Company's loan portfolio would have contracted by 1.0% YoY.
3 NIM: Net Interest Income for the quarter annualized / Average Productive Assets (Cash & Equivalents + Loan Portfolio) for the current and previous quarters
Financiera Independencia
Antonio Jorge, Investor Relations Manager
+52-55-5229-0237
[email protected]
SOURCE Financiera Independencia
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