FINDEP's 3Q16 Net Income of Ps.80.9 million, a 27.6% increase YoY, and NPL of 5.3%, the lowest in 8 years[1]
- Loan Portfolio of Ps.7,172.0 million[2], a 1.3% increase YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.
- NPL Ratio of 5.3%, 148 bps lower than in 3Q15 and well below the industry's average and the Company's target of 7.5% for 2016.
- NIM[3] After Provisions including fees was 49.3% in 3Q16, a 73 bps decrease YoY.
- Net Income of Ps.80.9 million, a 27.9% increase vs. 3Q15.
- The Average Effective Lending Rate decreased by 317 bps to 66.5% in 3Q16 versus 3Q15, mostly due to the 49.0% YoY increase of Findep's loan portfolio in the USA, which commands a lower effective rate. The Average Funding Cost was 9.01%, at the same level as in 3Q15, in spite of Banxico's 150 bps increase over the same period.
- Equity to Total Assets of 33.7%, a 104 bps improvement versus 3Q15.
- ROAE in 3Q16 was 8.1%, versus 6.8% in 3Q15.
MEXICO CITY, Oct. 20, 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 nine months periods ended September 30th, 2016.
| Financial & Operational Highlights |
||||||||
| 3Q16 |
3Q15 |
% |
9M16 |
9M15 |
% |
|||
| Income Statement Data |
||||||||
| Net Interest Income after Provisions* |
742.8 |
724.5 |
2.5% |
2151.6 |
2,111.1 |
1.9% |
||
| Net Operating Income (Loss)* |
112.2 |
93.0 |
20.6% |
252.7 |
237.5 |
6.4% |
||
| Net Income (Loss)* |
80.9 |
63.4 |
27.6% |
174.1 |
162.2 |
7.3% |
||
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
||
| Earnings (Loss) Per Share |
0.1130 |
0.0885 |
27.6% |
0.2432 |
0.2265 |
7.3% |
||
| Profitability & Efficiency |
||||||||
| NIM before Provisions Excl. Fees |
53.2% |
57.3% |
-4.1 pp |
51.8% |
56.1% |
-4.3 pp |
||
| NIM after Provisions Excl. Fees |
38.6% |
38.8% |
-0.1 pp |
37.0% |
37.4% |
-0.4 pp |
||
| NIM after Provisions Incl. Fees |
49.3% |
50.0% |
-0.7 pp |
46.6% |
48.7% |
-2.1 pp |
||
| ROA |
2.7% |
2.2% |
0.5 pp |
2.0% |
1.9% |
0.1 pp |
||
| ROE |
8.1% |
6.8% |
1.2 pp |
6.0% |
5.9% |
0.1 pp |
||
| Efficiency Ratio Incl. Provisions |
88.2% |
90.1% |
-1.9 pp |
90.7% |
91.4% |
-0.7 pp |
||
| Efficiency Ratio Excl. Provisions |
68.1% |
65.7% |
2.3 pp |
68.8% |
66.0% |
2.8 pp |
||
| Operating Efficiency |
27.9% |
29.5% |
-1.6 pp |
27.7% |
29.5% |
-1.8 pp |
||
| Fee Income |
10.9% |
13.8% |
-2.9 pp |
11.8% |
14.3% |
-2.5 pp |
||
| Capitalization |
||||||||
| Equity to Total Assets |
33.7% |
32.7% |
1 pp |
33.7% |
32.7% |
1 pp |
||
| Credit Quality Ratios |
||||||||
| NPL Ratio |
5.3% |
6.8% |
-1.5 pp |
5.3% |
6.8% |
-1.5 pp |
||
| Coverage Ratio |
100.0% |
100.0% |
0 pp |
100.0% |
100.0% |
0 pp |
||
| Operational Data |
||||||||
| Number of Clients |
984,748 |
1,056,876 |
-6.8% |
984,748 |
1,056,876 |
-6.8% |
||
| Number of Offices |
568 |
562 |
1.1% |
568 |
562 |
1.1% |
||
| Total Loan Portfolio* |
7,172.0 |
7,083.3 |
1.3% |
7,172.0 |
7,083.3 |
1.3% |
||
| Average Loan Balance (Ps.)** |
7,183.0 |
6,702.1 |
7.2% |
7,183.0 |
6,702.1 |
7.2% |
||
| * Figures in millions of Mexican Pesos. |
||||||||
| ** Excludes Other Loans from the average calculation |
Commenting on the results, Eduardo Messmacher, Executive Vice President, said:
"This September marked the 4th anniversary since the implementation of the strategic focus of prioritizing loan portfolio quality and profitability over size, a period over which the Company has consistently delivered a quarterly profit and exceeded its targets in terms of portfolio quality. This is highlighted by today's NPL of only 5.3%, the lowest in over 8 years; well below the Company's goals and the Industry's average.
These are solid results, though we must recognize that both Loan Portfolio and Net Income growth are below expectations. However, we are satisfied with the overall group's performance in today's less favorable economic environment and with the progress on the implementation of the 2016-2018 business plan.
Our results reflect 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. A group stronger than its individual parts, where a weaker performance by a subsidiary can be easily compensated through stronger performances by the others, affording us a more reliable and balanced overall result."
3Q16 EARNINGS CONFERENCE CALL
| Day: |
Friday, October 21st, 2016 |
| Time: |
11:00 AM US EST; 10:00 AM Mexico City time |
| Dial-in number: |
888-539-3679 (US & Canada) |
| 719-325-2452 (International & Mexico) |
|
| Access Code: |
1061896 |
| 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 21st and ending at 11:59 pm EST on October 28th, 2016. The replay will be accessible by dialing 844-512-2921 (U.S./Canada) or 412-317-6671 (international) and entering passcode 1061896. |
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 September 30th, 2016, FINDEP had a total outstanding loan balance of Ps.7,172.0 million, operated 568 offices in Mexico, Brazil, and the US and had a total labor force of 9,964 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.98.5 million of Other Loans. If, this loan portfolio is not considered, the Company's loan portfolio would have contracted by 0.1% YoY.
[3] NIM: Net Interest Income for the quarter annualized / Average Productive Assets (Cash & Equivalents + Loan Portfolio) for the current and previous quarters
SOURCE Financiera Independencia
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