FINDEP's 3Q15 Net Income of Ps.63.4 million, marks 11th consecutive quarter of consistent profitability[1]
- Loan Portfolio of Ps.7,083.3 million, a 0.9% increase YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.
- NPL Ratio of 6.8%, 43 bps lower than in 2Q15 and well below the industry's average and the Company's target of 7.5% for 2015.
- NIM[2] After Provisions including fees was 50.0% in 3Q15, a 113 bps decrease YoY yet a 196 bps increase on a sequential basis.
- Net Income of Ps.63.4 million, a 63.8% increase vs. 2Q15 and the 11th consecutive quarter of consistent profitability.
- The Average Effective Lending Rate decreased by 261 bps to 69.7% in 3Q15 versus 3Q14, mostly due to the 86.1% YoY increase of FINDEP's loan portfolio in USA, which commands a lower Lending Rate. The Average Funding Cost decreased by 48 bps to 9.0% during the same period.
- Equity to Total Assets of 32.7%, a 163 bps improvement versus 3Q14 and 60 bps on a sequential basis.
- ROAE in 3Q15 was 6.8%, versus 9.5% in 3Q14 and 4.3% in 2Q15.
MEXICO CITY, Oct. 22, 2015 /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 nine months periods ended September 30th, 2015.
| Financial & Operational Highlights |
|||||||
| 3Q15 |
3Q14 |
% |
9M15 |
9M14 |
% |
||
| Income Statement Data |
|||||||
| Net Interest Income after Provisions* |
724.5 |
731.6 |
-1.0% |
2111.1 |
2,157.4 |
-2.1% |
|
| Net Operating Income (Loss)* |
93.0 |
104.9 |
-11.3% |
237.5 |
332.9 |
-28.7% |
|
| Net Income (Loss)* |
63.4 |
78.4 |
-19.2% |
162.2 |
242.2 |
-33.1% |
|
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
|
| Earnings (Loss) Per Share |
0.0885 |
0.1095 |
-19.2% |
0.2265 |
0.3383 |
-33.1% |
|
| Profitability & Efficiency |
|||||||
| NIM before Provisions Excl. Fees |
57.3% |
58.2% |
-0.9 pp |
56.1% |
56.0% |
0 pp |
|
| NIM after Provisions Excl. Fees |
38.8% |
39.3% |
-0.6 pp |
37.4% |
38.8% |
-1.4 pp |
|
| NIM after Provisions Incl. Fees |
50.0% |
51.2% |
-1.1 pp |
48.7% |
50.8% |
-2.1 pp |
|
| ROA |
2.2% |
2.9% |
-0.7 pp |
1.9% |
3.0% |
-1.1 pp |
|
| ROE |
6.8% |
9.5% |
-2.6 pp |
5.9% |
10.0% |
-4 pp |
|
| Efficiency Ratio Incl. Provisions |
90.1% |
89.0% |
1.1 pp |
91.4% |
88.2% |
3.1 pp |
|
| Efficiency Ratio Excl. Provisions |
65.7% |
65.0% |
0.7 pp |
66.0% |
65.9% |
0.1 pp |
|
| Operating Efficiency |
29.5% |
31.3% |
-1.8 pp |
29.5% |
31.3% |
-1.8 pp |
|
| Fee Income |
13.8% |
15.4% |
-1.6 pp |
14.3% |
15.1% |
-0.8 pp |
|
| Capitalization |
|||||||
| Equity to Total Assets |
32.7% |
31.0% |
1.6 pp |
32.7% |
31.0% |
1.6 pp |
|
| Credit Quality Ratios |
|||||||
| NPL Ratio |
6.8% |
6.2% |
0.6 pp |
6.8% |
6.2% |
0.6 pp |
|
| Coverage Ratio |
100.0% |
100.3% |
-0.3 pp |
100.0% |
100.3% |
-0.3 pp |
|
| Operational Data |
|||||||
| Number of Clients |
1,056,876 |
1,093,528 |
-3.4% |
1,056,876 |
1,093,528 |
-3.4% |
|
| Number of Offices |
562 |
570 |
-1.4% |
562 |
570 |
-1.4% |
|
| Total Loan Portfolio* |
7,083.3 |
7,018.5 |
0.9% |
7,083.3 |
7,018.5 |
0.9% |
|
| Average Balance (Ps.) |
6,702.1 |
6,418.3 |
4.4% |
6,702.1 |
6,418.3 |
4.4% |
|
| * Figures in millions of Mexican Pesos. |
|||||||
Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said: "Our 3Q15 results were positive and consistent with our strategic focus of prioritizing loan portfolio quality and profitability over size. This September marked the 3rd anniversary since we implemented the Company's current strategic focus, and represents the 11th consecutive quarter of consistent net income generation.
Notwithstanding the progress achieved over the past 3 years, 3Q15 results came below our expectations, mostly due to the ongoing economic weakness in our main economic markets, Mexico and Brazil; as was also the case for 1Q15 and 2Q15 results.
This performance has warranted special attention by our management team and a fine tuning of our strategy and goals while macroeconomic conditions improve. To this effect, we've conducted a profound analysis of every single aspect of our operations looking for opportunities to better take advantage of the current economic context.
The conclusions reached have been meaningful and will significantly shift our growth strategy for the 2016-2018 planning period, when we will increase our focus on subsidiaries and products that have presented a better performance in the current economic scenario.
All considered, 2015 has been a tough year for Financiera Independencia. Yet, despite a weak economic outlook, our strategic focus on quality over size, the optimization of our operating and financial structures, and key decisions to optimize our capital budgeting to the most profitable subsidiaries should allow us to surmount these challenging times, reach our profitability and quality goals, and continue our path to historical levels of profitability."
3Q15 EARNINGS CONFERENCE CALL
| Day: |
Friday, October 23rd, 2015 |
| Time: |
11:00 AM US EST; 10:00 AM Mexico City time |
| Dial-in number: |
888-3378198 (US & Canada) |
| Access Code: |
4527443 |
| 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 23rd and ending at 11:59 pm EST on October 30th, 2015. The |
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 30th, 2015, FINDEP had a total outstanding loan balance of Ps.7,083.3 million, operated 562 offices in Mexico, Brazil, and the US and had a total labor force of 10,821 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.
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