4Q14's Net Income of Ps.75.8 million allows FINDEP to reach Ps.318.0 million for the full year and meet 2014 guidance with 25.1% YoY growth[1]

MEXICO CITY, Feb. 19, 2015 /PRNewswire/ --

• Loan Portfolio of Ps.7,073.3 million, a 3.5% increase YoY, consistent with the Company's current strategic focus of prioritizing loan portfolio quality and profitability over size.
• NPL Ratio decreased by 10 bps to 7.2% in 4Q14; underscoring the ongoing success of the Company's new operating policies.
• Write Offs increased by 7.8% YoY, to Ps.340.1 million in 4Q14.
• NIM² After Provisions including fees was 48.3% in 4Q14, a 37 bps decrease versus 4Q13.
• Net Operating Income grew 24.1% YoY; while Net Income contracted by 6.8% YoY due to a higher tax rate than in 4Q13.
• The Average Effective Lending Rate decreased by 189 bps to 72.2% in 4Q14 versus 4Q13. The Average Funding Cost decreased by 149 bps to 9.40% during the same period.
• Equity to Total Assets of 31.5%, a 159 bps improvement versus 4Q13.
• ROAE in 4Q14 was 8.8%, a 190 bps contraction when compared to 4Q13.

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, 2014.

Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "Focusing on loan portfolio quality and profitability over size, we have achieved our 2nd consecutive year of consistent and solid profitability.

The disciplined and firm application of the company's new operating policies has been the key driver in our ability to reach our quality and profitability objectives, especially in economic and political contexts considerably weaker than initially expected for Mexico and Brazil; which greatly underscores the success of our current strategic focus.

In spite of the challenges, the company's meticulous operating policies allowed us to grow the loan portfolio by 3.5%, short of our 6.5% goal for the year but in a much more profitable and efficient manner. As a result, the company delivered on its full year results guidance with significant improvements on most of its profitability, efficiency and quality indicators, including:

• Net income of Ps.318.0 million, a noteworthy 25.1% YoY growth
• NPL ratio of 7.2%, a 10 bps YoY reduction
• Better Efficiency and Operating Efficiency ratios, with improvements of 381 and 181 bps YoY, respectively
• Stronger capitalization ratio of 31.5%, a 159 bps YoY growth, and
• ROE and ROA YoY improvements of 110 and 47 bps, respectively…
  …results that confirm, once more, our track on sustainable and consistent long-term profitability."

4Q14 EARNINGS CONFERENCE CALL

Day:                       Friday February 20^th, 2015

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

Dial-in number:        888-438-5525 (US & Canada)

                              719-325-2329 (International & Mexico)

Access Code:          6372339

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 20^th and ending at 10:59 pm EST on February 27^th, 2015. The replay will be accessible by dialing 877-870-5176 (U.S./Canada) or 858-384-5517 (international) and entering pass code 6372339.

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, 2014, FINDEP had a total outstanding loan balance of Ps.7,073.3 million, operated 570 offices in Mexico, Brazil, and the US and had a total labor force of 11,653 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 2014 and 2013 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.

Related Links

http://www.findep.mx