FINDEP's 4Q16 Net Income of Ps.59.9 million, a 27.8% increase YoY, and NPL of 5.5%, a 124 bps decrease YoY[1]
- Loan Portfolio of Ps.7,447.8 million[2], a 4.7% increase YoY, consistent with the Company's strategic focus of prioritizing loan portfolio quality and profitability over size.
- NPL Ratio of 5.5%, 124 bps lower than in 4Q15 and well below the industry's average and the Company's target of 6.5% for 2016.
- NIM[3] After Provisions including fees was 49.1% in 4Q16, a 498 bps increase YoY.
- Net Income of Ps.59.9 million, a 27.8% increase vs. 4Q15.
- The Average Effective Lending Rate decreased by 253 bps to 66.2% in 4Q16 versus 4Q15, mostly due to the 61.0% YoY increase of Findep's loan portfolio in the USA, which commands a lower effective rate. The Average Funding Cost was 9.22%, 26 bps higher than in 4Q15, in spite of Banxico's 250 bps increase over the same period.
- Equity to Total Assets of 33.3%, a 124 bps improvement versus 4Q15.
- ROAE in 4Q16 was 6.0%, versus 5.0% in 4Q15.
MEXICO CITY, Feb. 23, 2017 /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 31st , 2016.
| Financial & Operational Highlights |
|||||||||
| 4Q16 |
4Q15 |
% |
12M16 |
12M15 |
% |
||||
| Income Statement Data |
|||||||||
| Net Interest Income after Provisions* |
735.7 |
672.1 |
9.5% |
2887.3 |
2,783.2 |
3.7% |
|||
| Net Operating Income (Loss)* |
75.3 |
46.0 |
63.6% |
328.0 |
283.5 |
15.7% |
|||
| Net Income (Loss)* |
59.9 |
46.9 |
27.8% |
234.0 |
209.0 |
11.9% |
|||
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
|||
| Earnings (Loss) Per Share |
0.0837 |
0.0655 |
27.8% |
0.3269 |
0.2920 |
11.9% |
|||
| Profitability & Efficiency |
|||||||||
| NIM before Provisions Excl. Fees |
53.3% |
56.0% |
-2.8 pp |
51.6% |
55.5% |
-3.9 pp |
|||
| NIM after Provisions Excl. Fees |
37.2% |
35.3% |
1.8 pp |
36.6% |
36.5% |
0.1 pp |
|||
| NIM after Provisions Incl. Fees |
49.1% |
44.1% |
5 pp |
46.7% |
47.0% |
-0.4 pp |
|||
| ROA |
2.0% |
1.6% |
0.4 pp |
2.0% |
1.8% |
0.1 pp |
|||
| ROE |
6.0% |
5.0% |
1 pp |
6.0% |
5.8% |
0.2 pp |
|||
| Efficiency Ratio Incl. Provisions |
92.3% |
94.5% |
-2.3 pp |
91.1% |
92.1% |
-1 pp |
|||
| Efficiency Ratio Excl. Provisions |
69.5% |
64.3% |
5.2 pp |
69.0% |
65.6% |
3.4 pp |
|||
| Operating Efficiency |
29.9% |
27.1% |
2.7 pp |
28.0% |
28.8% |
-0.9 pp |
|||
| Fee Income |
9.5% |
14.2% |
-4.6 pp |
11.2% |
14.2% |
-3.1 pp |
|||
| Capitalization |
|||||||||
| Equity to Total Assets |
33.3% |
31.8% |
1.5 pp |
33.3% |
31.8% |
1.5 pp |
|||
| Credit Quality Ratios |
|||||||||
| NPL Ratio |
5.5% |
6.7% |
-1.2 pp |
5.5% |
6.7% |
-1.2 pp |
|||
| Coverage Ratio |
100.0% |
100.0% |
0 pp |
100.0% |
100.0% |
0 pp |
|||
| Operational Data |
|||||||||
| Number of Clients |
978,268 |
1,034,702 |
-5.5% |
978,268 |
1,034,702 |
-5.5% |
|||
| Number of Offices |
574 |
549 |
4.6% |
574 |
549 |
4.6% |
|||
| Total Loan Portfolio* |
7,447.8 |
7,116.0 |
4.7% |
7,447.8 |
7,116.0 |
4.7% |
|||
| Average Balance (Ps.)** |
7,522.4 |
6,753.3 |
11.4% |
7,522.4 |
6,753.3 |
11.4% |
|||
| * Figures in millions of Mexican Pesos. |
|||||||||
| ** Excludes Other Loans from the average calculation |
Commenting on the results, Eduardo Messmacher, Executive Vice President, said: "I am glad to report that Financiera Independencia delivered quarterly and full year results consistent with its strategic framework and the annual goals updated last October. With this we conclude 4 consecutive years of consistent positive net results under the Company's focus on loan portfolio quality and profitability over size that was implemented in September 2012.
The disciplined and firm 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 2 of our markets, Mexico and Brazil; what greatly underscores the success of our current strategic focus.
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 the performance from a subsidiary can be easily compensated through stronger performances by the others, affording us a more reliable and balanced overall result."
4Q16 EARNINGS CONFERENCE CALL
| Day: |
Friday, February 24th, 2017 |
| Time: |
11:00 AM US EST; 10:00 AM Mexico City time |
| Dial-in number: |
888-765-5576 (US & Canada) |
| 913-312-1507 (International & Mexico) |
|
| Access Code: |
8360629 |
| 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 24th and ending at 11:59 pm EST on March 03rd, 2017. The replay will be accessible by dialing 844-512-2921 (U.S./Canada) or 412-317-6671 (international) and entering passcode 8360629. |
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 December 31st, 2016, FINDEP had a total outstanding loan balance of Ps.7,447.8 million, operated 574 offices in Mexico, Brazil, and the US and had a total labor force of 10,108 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.88.9 million of Other Loans. If this loan portfolio is not considered, the Company's loan portfolio would have grown by 5.3% 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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