FINDEP's 4Q15 Net Income of Ps.46.9 million allows FINDEP to exceed full year revised guidance with Ps.209.0 million and NPL of 6.7%[1]

Latin America - español

Loan Portfolio of Ps.7,116.0 million[2], a 0.6% increase YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.

NPL Ratio of 6.7%[3], 48 bps lower than in 4Q14 and well below the industry's average and the Company's target of 7.5% for 2015.

NIM[4] After Provisions including fees was 44.1% in 4Q15, a 416 bps decrease YoY.

Net Income of Ps.46.9 million, a 38.1% decrease vs. 4Q14 and the 12th consecutive quarter of consistent profitability.

The Average Effective Lending Rate decreased by 349 bps to 68.8%[5] in 4Q15 versus 4Q14, mostly due to the 69.0% YoY increase of Findep's loan portfolio in USA, which commands a lower Lending Rate. The Average Funding Cost decreased by 44 bps to 9.0% during the same period.

Equity to Total Assets of 31.8%, a 24 bps improvement versus 4Q14.

ROAE in 4Q15 was 5.0%, versus 8.8% in 4Q14.

News provided by

Financiera Independencia

Feb 18, 2016, 09:30 ET

MEXICO CITY, Feb. 18, 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 twelve months periods ended December 31^st, 2015.

Financial & Operational Highlights
	4Q15	4Q14	%	12M15	12M14	%
Income Statement Data
Net Interest Income after Provisions*	672.1	691.5	-2.8%	2783.2	2,848.9	-2.3%
Net Operating Income (Loss)*	46.0	104.9	-56.1%	283.5	437.8	-35.2%
Net Income (Loss)*	46.9	75.8	-38.1%	209.0	318.0	-34.3%
Total Shares Outstanding (million)	715.9	715.9	0.0%	715.9	715.9	0.0%
Earnings (Loss) Per Share	0.0655	0.1058	-38.1%	0.2920	0.4442	-34.3%
Profitability & Efficiency
NIM before Provisions Excl. Fees	56.0%	59.2%	-3.2 pp	55.5%	56.8%	-1.3 pp
NIM after Provisions Excl. Fees	35.3%	36.9%	-1.6 pp	36.5%	38.3%	-1.8 pp
NIM after Provisions Incl. Fees	44.1%	48.3%	-4.2 pp	47.0%	50.1%	-3.1 pp
ROA	1.6%	2.8%	-1.1 pp	1.8%	3.0%	-1.1 pp
ROE	5.0%	8.8%	-3.8 pp	5.8%	9.7%	-3.9 pp
Efficiency Ratio Incl. Provisions	94.5%	88.4%	6.1 pp	92.1%	88.3%	3.8 pp
Efficiency Ratio Excl. Provisions	64.3%	60.4%	3.9 pp	65.6%	64.5%	1.1 pp
Operating Efficiency	27.1%	29.1%	-1.9 pp	28.8%	30.8%	-1.9 pp
Fee Income	14.2%	16.8%	-2.6 pp	14.2%	15.5%	-1.2 pp
Capitalization
Equity to Total Assets	31.8%	31.5%	0.2 pp	31.8%	31.5%	0.2 pp
Credit Quality Ratios
NPL Ratio	6.7%	7.2%	-0.5 pp	6.7%	7.2%	-0.5 pp
Coverage Ratio	100.0%	100.0%	0 pp	100.0%	100.0%	0 pp
Operational Data
Number of Clients	1,034,702	1,082,175	-4.4%	1,034,702	1,082,175	-4.4%
Number of Offices	549	570	-3.7%	549	570	-3.7%
Total Loan Portfolio*	7,116.0	7,073.3	0.6%	7,116.0	7,073.3	0.6%
Average Balance (Ps.)**	6,753.3	6,536.2	3.3%	6,877.3	6,536.2	5.2%
* 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: "I am glad to report that Financiera Independencia delivered quarterly and full year results consistent with our strategic framework and the annual goals updated last October.

With this we conclude three consecutive years of positive results under the Company's focus on loan portfolio quality and profitability over size.

The disciplined implementation of the company's operating policies has been the key driver in our ability to reach our quality and profitability objectives, particularly in the current weak economic environment in our 2 largest markets, Mexico and Brazil; what greatly underscores the success of our current strategic focus.

In this context, I would like to highlight the following achievements for 2015:

Loan portfolio expanded by 0.6%YoY, yet the Company's NPL Ratio came down a further 48 bps to 6.7%; well below the Company's 7.5% target and the Industry's average
As a result, Net Income was Ps.209 million for the full year came slightly above of our revised goal and representing the 3^rd consecutive year of steady profitability
Furthermore, the Company's operating efficiency improved by 195 bps to 28.8%, and
its Capitalization ratio grew 24 bps to 31.8% during 2015.."

4Q15 EARNINGS CONFERENCE CALL

Day:	Friday, February 19^th, 2016

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

Dial-in number:	888-4178533 (US & Canada)
	719-3252420 (International & Mexico)

Access Code:	8240694

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 February 19^th and ending at 11:59 pm EST on February 26^th, 2016. The replay will be accessible by dialing 877-870-5176 (U.S./Canada) or 858-384-5517 (international) and entering pass code 8240694.

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 December 31^st, 2015, FINDEP had a total outstanding loan balance of Ps.7,116.0 million, operated 549 offices in Mexico, Brazil, and the US and had a total labor force of 10,087 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] It includes Ps.128.3 million of Other Loans. If, this loan portfolio is not considered, the Company's loan portfolio would have contracted by 1.2% YoY.

[3] If Other Loans are not considered, NPL would be 6.9%, 36 bps 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 69.4%, 286 pbs lower YoY.