UNIFIN reports an increase of 26.6% in Interest Income, reaching Ps. 2,418 million in 1Q19; Financial Margin grew 40.8% during the quarter

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Apr 11, 2019, 20:29 ET

MEXICO CITY, April 11, 2019 /PRNewswire/ -- UNIFIN Financiera, S.A.B. de C.V. ("UNIFIN" or "the Company") (BMV: UNIFINA), announces its results for the first quarter 2019 ("1Q19"). The Financial Statements have been prepared in accordance with the accounting criteria of the Mexican National Banking and Securities Commission ("CNBV") and filed with the Mexican Stock Exchange ("BMV").

On March 21, 2019, the Extraordinary Annual Shareholders' meeting approved, among others, the amendment of the Company's bylaws from a SOFOM (NBFI) to a SAB de CV. Consequently, starting in 1Q19, the Company has ceased reporting under the Mexican Financial Information Standards ("NIF") and has adopted International Financial Reporting Standards ("IFRS"). For further details of the main accounting changes, refer to Annex 1 of this document.

Highlights from 1Q19

Interest income increased by 26.6% to Ps. 2,418 million in 1Q19, compared to Ps. 1,910 million in 1Q18.
Financial margin increased by 40.8% to Ps. 854 million during 1Q19, compared to Ps. 607 million in 1Q18. Consequently, the net interest margin ("NIM") improved to 7.6% in 1Q19 from 6.2% in 1Q18.
Operating expenses represented 15.5% of total revenue in 1Q19. OpEx as a % of sales ended in 14.1% during the quarter.
Operating income closed at Ps. 429 million, an increase of 24.2% vs. 1Q18.
Comprehensive financing result was Ps. 144 million at the end of 1Q19.
In 1Q19 net income increased by 19.7% to Ps. 469 million compared to Ps. 392 million in 1Q18.
As of March 31, 2019, the total net portfolio reached Ps. 45,237 million, an increase of 26.1%.
The NPL ratio was 3.6% of the loan portfolio at the end of 1Q19.
Total assets increased by 25.1% year-over-year, at the end of 1Q19, reaching Ps. 61,915 million.
Funding cost for the quarter reached 10.1%, which represents an increase of 20 bps vs. 9.9% in 1Q18. During the quarter, new financing facilities equivalent to Ps. 6,525 million were obtained.
In 1Q19, the Company continued with its share repurchase program acquiring 5.1 million shares in the quarter (refer to Annex 5 for more details).