Financiera Independencia Reports 2Q11 Net Income of Ps.57.0 Million and Loan Portfolio Growth of 25.2%
- Total loan portfolio of Ps.6,742.9 million, a 25.2% year-over-year increase, driven by AEF and AFI acquisitions and significant growth at Finsol.
- Independencia's individual new loan origination increased to Ps.996.1 million, up 4.0% YoY and 14.8% QoQ.
- Non-performing loans to total loans ratio down to 9.8% in 2Q11 from 11.2% in 2Q10 and up from 8.2% in 1Q11.
- NIM after provisions including fees improved to 44.6% in 2Q11 compared to 42.6% in 2Q10.
- Provisions for loan losses increased to 34.0% of financial margin in 2Q11, compared with 32.5% in 2Q10, and 29.6% in 1Q11.
- Funding cost decreased to 10.82% in 2Q11, from 11.63% in 1Q11.
- Net income down 60.3% YoY, and 36.7% on a sequential basis.
- Equity to total assets of 28.4% compared to 34.1% in 2Q10, and 30.0% in 1Q11.
- ROE in 2Q11 decreased to 7.6% compared to 12.1% in 1Q11, and to 19.8% in 2Q10.
MEXICO CITY, July 27, 2011 /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, announced today results for the three and six month periods ended June 30, 2011. Net income for 2Q11 declined 60.3% YoY to Ps.57.0 million.
Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, "Our total loan portfolio rose by 25.2% year-on-year this quarter to Ps.6,742.9 million, particularly reflecting significant growth at Finsol since its acquisition as well as the acquisition of AEF and AFI earlier this year. We have also begun to see an early recovery in Independencia's individual loan portfolio this quarter, with loan origination up 14.8% quarter-on quarter and 4.0% year-on-year. This is the first quarter since we tightened our credit scoring model at the end of 2009 that we see growth in this loan segment."
"Our bottom line, however, was impacted by an increase in provision for loan losses and higher financing expenses resulting from additional debt incurred to finance the recent acquisitions as we aggressively expanded operations. The average interest rate paid, however, has declined by 81 bps as we continue to seek lower cost funding sources. Looking ahead, we expect to return to historic levels of profitability as new loans mature into productivity and investments and interest expenses are amortized," concluded Mr. Gonzalez.
Financial & Operational Highlights |
||||||||
2Q11 |
2Q10 |
% |
6M11 |
6M10 |
% |
|||
Income Statement Data |
||||||||
Net Interest Income after Provisions* |
596.2 |
512.3 |
16.4% |
1,150.3 |
1,039.1 |
10.7% |
||
Net Operating Income* |
71.2 |
160.6 |
-55.7% |
188.6 |
326.7 |
-42.3% |
||
Net Income* |
57.0 |
143.5 |
-60.3% |
147.0 |
285.4 |
-48.5% |
||
Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
||
EPS |
0.0796 |
0.2004 |
-60.3% |
0.2053 |
0.3986 |
-48.5% |
||
Profitability & Efficiency |
||||||||
NIM before Provisions Excl. Fees |
50.1% |
39.4% |
10.7 pp |
48.2% |
49.9% |
-1.7 pp |
||
NIM after Provisions Excl. Fees |
33.1% |
26.6% |
6.5 pp |
32.8% |
34.0% |
-1.2 pp |
||
NIM after Provisions Incl. Fees |
44.6% |
42.6% |
1.9 pp |
44.1% |
50.8% |
-6.7 pp |
||
ROA |
2.2% |
6.0% |
-3.8 pp |
3.1% |
7.7% |
-4.7 pp |
||
ROE |
7.6% |
19.8% |
-12.2 pp |
9.9% |
23.4% |
-13.5 pp |
||
Efficiency Ratio Incl. Provisions |
91.1% |
80.5% |
10.7 pp |
87.8% |
79.0% |
8.8 pp |
||
Efficiency Ratio Excl. Provisions |
65.9% |
61.9% |
4 pp |
65.0% |
60.1% |
4.9 pp |
||
Operating Efficiency |
28.6% |
27.8% |
0.8 pp |
28.3% |
33.2% |
-4.9 pp |
||
Fee Income |
24.1% |
21.4% |
2.7 pp |
24.9% |
22.5% |
2.4 pp |
||
Capitalization |
||||||||
Equity to Total Assets |
28.4% |
34.1% |
-5.7 pp |
28.4% |
34.1% |
-5.7 pp |
||
Credit Quality Ratios |
||||||||
NPL Ratio |
9.8% |
11.2% |
-1.4 pp |
9.8% |
11.2% |
-1.4 pp |
||
Coverage Ratio |
69.6% |
68.9% |
0.7 pp |
69.6% |
68.9% |
0.7 pp |
||
Operational Data |
||||||||
Number of Clients |
1,512,141 |
1,343,900 |
12.5% |
1,512,141 |
1,343,900 |
12.5% |
||
Number of Offices |
478 |
369 |
29.5% |
478 |
369 |
29.5% |
||
Total Loan Portfolio* |
6,742.9 |
5,386.8 |
25.2% |
6,742.9 |
5,386.8 |
25.2% |
||
Average Balance (Ps.) |
4,459.2 |
4,008.3 |
11.2% |
4,459.2 |
4,008.3 |
11.2% |
||
* Figures in millions of Mexican Pesos. |
||||||||
__________
All financial figures discussed in this announcement are unaudited and are prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. Figures for 2010 and 2011 are expressed in nominal pesos. Tables state figures in millions of pesos, unless otherwise noted.
Independencia: refers to operations excluding the recent acquisitions of Finsol, AEF and AFI.
2Q11 CONSOLIDATED RESULTS
Unaudited results for 2Q11 include the effect of the consolidation of the acquisition of Apoyo Economico Familiar ("AEF"), one of the largest unsecured personal lending institutions in Mexico, on March 15, 2011, of Apoyo Financiero Inc. ("AFI"), a microfinance company primarily serving the unbanked Hispanic community in San Francisco, California, on February 28, 2011, and of Financiera Finsol, the second largest group lending microfinance institution in Mexico, and Instituto Finsol Brazil (collectively, "Finsol") on February 19, 2010.
Financial Margin after Provision for Loan Losses
Financial margin after provision for loan losses for 2Q11 increased 16.4% year-on-year to Ps.596.2 million. This is principally explained by the following:
Interest Income
Interest income for the quarter increased 21.2% year-on-year to Ps.1,092.7 million, principally as a result of the Ps.213.8 million, or 24.4%, increase in interest income on loans. The total loan portfolio increased 25.2% during the period, driven by a 12.5% growth in the number of clients and an 11.2% increase in the average balance per client. The increase in the number of clients was driven by the significant growth in Finsol since its acquisition and the integration of AEF into the Company's balance sheet. The increase in the average balance per client reflects the higher share of Finsol in the total loan portfolio, and the considerably higher average balance per client at AEF.
The average balance per client increased from Ps.4,008 in 2Q10 to Ps.4,459 in 2Q11. The average lending rate(1) of the total loan portfolio decreased to 65.7% in 2Q11 from 66.8% in 2Q10 and increased from 61.6% in 1Q11. The sequential increase reflects the complete consolidation of AEF in the Company's results. Excluding AEF, the average lending rate was 62.2%.
Findep's total informal sector loans increased 39.3% year-on-year to Ps.3,334.2 million in 2Q11, representing 49.4% of the loan portfolio. This growth was driven by a 68.6% increase in Finsol's group loans combined with the acquisition of AEF. Independencia's individual loans to the informal sector increased 0.5% year-on-year, driven by a 5.3% and 27.7% growth in the CrediPopular and CrediMama products, respectively. Growth was partially offset by a 37.1% decline in the CrediConstruye product. The share of Independencia's individual loans to the informal sector fell from 29.9% of Findep's total loans in 2Q10 to 24.0% in 2Q11, principally as a result of the Finsol and AEF acquisitions, further diversifying our business.
The Company's total formal sector loans represented 50.6% of the total loan portfolio and increased by 13.9% to Ps.3,408.7 million in 2Q11, from Ps.2,993.5 million in 2Q10. Growth was the result of the AEF and AFI acquisitions. The CrediInmediato loan product, a revolving line of credit that targets the formal sector, represented a lower share of Findep's total loan portfolio, accounting for 42.8% of total loans in 2Q11 from 55.6% in 2Q10 and 42.9% in 1Q11. The number of CrediInmediato clients in 2Q11 declined 4.7% year-on-year, while the total loan portfolio of this product fell 3.7% to Ps.2,883.6 million. The average balance per contract for CrediInmediato was Ps.4,101 in 2Q11, up 1.1% year-on-year, with the draw-down rate dropping from 73.0% to 72.8%. On a sequential basis the number of CrediInmediato clients declined 0.5% while the loan portfolio grew 2.3%.
Finsol's total loans reached Ps.1,321.2 million in 2Q11, a 3.2% increase from the Ps.1,280.0 million reported in 1Q11 and a 68.6% increase from 2Q10. During 2Q11, a total of Ps.1,018.0 million loans were originated at Finsol Mexico and Ps.317.0 million at Finsol Brazil, representing a 2.9% and 17.9% sequential increase, respectively, reflecting the seasonality of the business. Group loans represented 19.6% of the total loan portfolio, practically unchanged from the 19.5% reported in 1Q11 but increased 5.1 pps from the 14.5% posted in 2Q10.
________________________
(1) Average lending rate: interest income / average balance of the total loan portfolio.
Apoyo Economico Familiar total loan portfolio was Ps.885.0 million in 2Q11, a 5.1% sequential increase and a 12.6% increase from the Ps.785.6 million in 3Q10, date in which the acquisition was announced. The acquisition of AEF will allow Independencia to establish a strong presence in Mexico City and the Metropolitan area, a market where the Company did not have a personal loan operation. Apoyo Financiero Inc. total loan portfolio was Ps.35.2 million in 2Q11, representing 0.5% of the total consolidated portfolio.
Table 1: Financial Margin* |
||||||||||
2Q11 |
1Q11 |
2Q10 |
QoQ % |
YoY % |
6M11 |
6M10 |
% |
|||
Interest Income |
1,092.7 |
949.8 |
901.4 |
15.0% |
21.2% |
2,042.5 |
1,749.7 |
16.7% |
||
Interest on Loans |
1,089.3 |
939.9 |
875.4 |
15.9% |
24.4% |
2,029.2 |
1,715.5 |
18.3% |
||
Interest from Investment in Securities |
3.4 |
9.9 |
26.0 |
-65.4% |
-86.8% |
13.3 |
34.3 |
-61.0% |
||
Interest Expense |
188.7 |
162.5 |
142.8 |
16.1% |
32.1% |
351.2 |
223.6 |
57.1% |
||
Financial Margin |
904.0 |
787.3 |
758.6 |
14.8% |
19.2% |
1,691.3 |
1,526.1 |
10.8% |
||
Provision for Loan Losses |
307.8 |
233.2 |
246.3 |
32.0% |
24.9% |
541.0 |
487.0 |
11.1% |
||
Financial Margin After Provision for Loan Losses |
596.2 |
554.0 |
512.3 |
7.6% |
16.4% |
1,150.3 |
1,039.1 |
10.7% |
||
* Figures in millions of Mexican Pesos |
||||||||||
Table 2: Loan Portfolio, Number of Clients & Average Balance |
|||||||
2Q11 |
1Q11 |
2Q10 |
QoQ % |
YoY % |
|||
Loan Portfolio (million Ps.) |
6,742.9 |
6,561.7 |
5,386.8 |
2.8% |
25.2% |
||
Number of Clients |
1,512,141 |
1,505,614 |
1,343,900 |
0.4% |
12.5% |
||
Average Balance (Ps.) |
4,459.2 |
4,358.2 |
4,008.3 |
2.3% |
11.2% |
||
Table 3: Number of Clients by Product Type |
||||||||||
2Q11 |
% of Total |
1Q11 |
% of Total |
2Q10 |
% of Total |
QoQ % Change |
YoY % Change |
|||
Independencia's Formal Sector Loans |
703,180 |
46.5% |
706,564 |
46.9% |
738,111 |
54.9% |
-0.5% |
-4.7% |
||
- CrediInmediato |
703,180 |
46.5% |
706,564 |
46.9% |
738,111 |
54.9% |
-0.5% |
-4.7% |
||
Independencia's Informal Sector Loans |
431,717 |
28.6% |
429,673 |
28.5% |
443,332 |
33.0% |
0.5% |
-2.6% |
||
- CrediPopular |
340,187 |
22.5% |
334,305 |
22.2% |
332,425 |
24.7% |
1.8% |
2.3% |
||
- CrediMama |
50,644 |
3.3% |
49,870 |
3.3% |
45,020 |
3.3% |
1.6% |
12.5% |
||
- CrediConstruye |
40,886 |
2.7% |
45,498 |
3.0% |
65,887 |
4.9% |
-10.1% |
-37.9% |
||
Finsol Loans |
257,161 |
17.0% |
253,491 |
16.8% |
162,457 |
12.1% |
1.4% |
58.3% |
||
- Finsol Mexico |
210,290 |
13.9% |
212,247 |
14.1% |
132,812 |
9.9% |
-0.9% |
58.3% |
||
- Finsol Brasil |
46,871 |
3.1% |
41,244 |
2.7% |
29,645 |
2.2% |
13.6% |
58.1% |
||
Apoyo Economico Familiar Loans |
118,995 |
7.9% |
114,870 |
7.6% |
0 |
0.0% |
3.6% |
n/a |
||
Apoyo Financiero Inc Loans |
1,088 |
0.1% |
1,016 |
0.1% |
0 |
0.0% |
7.1% |
n/a |
||
Total Number of Loans |
1,512,141 |
100.0% |
1,505,614 |
100.0% |
1,343,900 |
100.0% |
0.4% |
12.5% |
||
Table 4: Total Loan Portfolio by Product Type* |
||||||||||
2Q11 |
% of Total |
1Q11 |
% of Total |
2Q10 |
% of Total |
QoQ % Change |
YoY % Change |
|||
Independencia's Formal Sector Loan Portfolio |
2,883.6 |
42.8% |
2,817.7 |
42.9% |
2,993.5 |
55.6% |
2.3% |
-3.7% |
||
- CrediInmediato |
2,883.6 |
42.8% |
2,817.7 |
42.9% |
2,993.5 |
55.6% |
2.3% |
-3.7% |
||
Independencia's Informal Sector Loan Portfolio |
1,617.9 |
24.0% |
1,588.9 |
24.2% |
1,609.8 |
29.9% |
1.8% |
0.5% |
||
- CrediPopular |
1,302.0 |
19.3% |
1,271.6 |
19.4% |
1,236.0 |
22.9% |
2.4% |
5.3% |
||
- CrediMama |
158.9 |
2.4% |
149.9 |
2.3% |
124.4 |
2.3% |
6.1% |
27.7% |
||
- CrediConstruye |
156.9 |
2.3% |
167.5 |
2.6% |
249.4 |
4.6% |
-6.3% |
-37.1% |
||
Finsol Loan Portfolio |
1,321.2 |
19.6% |
1,280.0 |
19.5% |
783.4 |
14.5% |
3.2% |
68.6% |
||
- Finsol Mexico |
864.0 |
12.8% |
876.9 |
13.4% |
556.7 |
10.3% |
-1.5% |
55.2% |
||
- Finsol Brasil |
457.2 |
6.8% |
403.1 |
6.1% |
226.7 |
4.2% |
13.4% |
101.7% |
||
Apoyo Economico Familiar Loans |
885.0 |
13.1% |
842.3 |
12.8% |
0.0 |
0.0% |
5.1% |
n/a |
||
Apoyo Financiero Inc Loans |
35.2 |
0.5% |
32.8 |
0.5% |
0.0 |
0.0% |
7.3% |
n/a |
||
Total Loan Portfolio |
6,742.9 |
100.0% |
6,561.7 |
100.0% |
5,386.8 |
100.0% |
2.8% |
25.2% |
||
* Figures in millions of Mexican Pesos. |
||||||||||
Table 5: Total Loan Portfolio by Segment* |
||||||||||
2Q11 |
% of Total |
1Q11 |
% of Total |
2Q10 |
% of Total |
QoQ % Change |
YoY % Change |
|||
Formal Sector Loan Portfolio |
3,408.7 |
50.6% |
3,319.4 |
50.6% |
2,993.5 |
55.6% |
2.7% |
13.9% |
||
- Independencia (CrediInmediato) |
2,883.6 |
42.8% |
2,817.7 |
42.9% |
2,993.5 |
56% |
2.3% |
-3.7% |
||
- AEF Formal |
489.9 |
7.3% |
468.9 |
7.1% |
0.0 |
0% |
4.5% |
0.0% |
||
- AFI |
35.2 |
0.5% |
32.8 |
0.5% |
0.0 |
0% |
7.3% |
0.0% |
||
Informal Sector Loan Portfolio |
3,334.2 |
49.4% |
3,242.3 |
49.4% |
2,393.2 |
44.4% |
2.8% |
39.3% |
||
- Independencia |
1,617.9 |
24.0% |
1,588.9 |
24.2% |
1,609.8 |
29.9% |
1.8% |
0.5% |
||
- Finsol Mexico |
864.0 |
12.8% |
876.9 |
13.4% |
556.7 |
10.3% |
-1.5% |
55.2% |
||
- Finsol Brasil |
457.2 |
6.8% |
403.1 |
6.1% |
226.7 |
4.2% |
13.4% |
101.7% |
||
- AEF Informal |
395.1 |
5.9% |
373.4 |
5.7% |
0.0 |
0.0% |
5.8% |
0.0% |
||
Total Loan Portfolio |
6,742.9 |
100.0% |
6,561.7 |
100.0% |
5,386.8 |
100.0% |
2.8% |
25.2% |
||
* Figures in millions of Mexican Pesos. |
||||||||||
Interest Expense
Interest expense during 2Q11 increased by Ps.45.9 million, or 32.1%, year-on-year, to Ps.188.7 million reflecting additional debt incurred to finance the Ps.1,180 million AEF and AFI acquisitions. The financing of the acquisitions resulted in a Ps.29.2 million increase in interest expenses for the quarter. Excluding this impact, interest expense increased by Ps.16.7 million or 11.7% year-on-year.
The average interest rate paid(2) decreased to 10.82% in 2Q11 from the 11.63% reported in 1Q11, and slightly increased from 10.69% in 2Q10. The sequential decline in the average interest rate paid is the result of tapping lower cost lines of credit and domestic debt capital markets. The average TIIE in 2Q11 remained unchanged YoY at 4.85%.
Provision for Loan Losses
Provisions for loan losses increased year-on-year by 24.9%, or Ps.61.4 million, to Ps.307.8 million in 2Q11. Excluding AEF and AFI provisions for loan losses increased year-on-year by 15.5% or Ps.38.1 million. Write-offs in 2Q11 decreased 4.7%, or by Ps.12.5 million, to Ps.251.1 million from Ps.263.6 million in 2Q10. Excluding AEF and AFI write-offs decreased by 13.5% to Ps.227.9 million. Total non-performing loans reached Ps.662.9 million, up 9.5% from Ps.605.6 million on 2Q10. AEF reported Ps.9.9 million in non-performing loans, representing an NPL ratio of 1.1%.
Market Related Income
During 2Q10, the Company reported Ps.118.9 million non-recurrent market related income reflecting the valorization of the currency hedge strategy for the US dollar bond issuance. To fully hedge Findep's exposure and reduce volatility in the P&L, in 3Q10 the Company's Risk Management Committee decided to execute a full cross currency swap. Since then, the mark to market impact of the cross currency swap and the valorization of the bond has been reported on the Stockholders Equity line on the Balance Sheet. As a result, market related income for 2Q11 was Ps. 0.1 million.
Net Operating Revenue
Net operating revenue decreased year-on-year by Ps.17.9 million, or 2.2%, to Ps.803.7 million in 2Q11 due to the reasons stated above as well as an increase in non-interest income. Non-interest income rose to Ps.208.5 million in 2Q11 from Ps.188.5 million in 2Q10 driven by a 4.0% increase in the origination of Independencia's individual loans during the period as well as the consolidation of AEF into the Company's results. On a sequential comparison, net operating revenue increased 8.3% from Ps.742.1 million in 1Q11.
Net Operating Income
Net operating income for 2Q11 decreased year-on-year by Ps.89.4 million, or 55.7%, to Ps.71.2 million. On a sequential comparison net operating income decreased 39.4% from Ps.117.4 million in 1Q11.
Non-interest expense increased by Ps.71.6 million year-on-year, or 10.8%, below the 25.2% growth in total loans achieved during the period, and was driven by the consolidation of AEF into the Company's results. Excluding AEF and AFI non-interest expense decreased year-on-year by Ps.70.1 million, or 10.6%, to Ps.590.9 million, reflecting savings from cost reduction initiatives implemented in 4Q10. On a sequential basis, non-interest expense increased by Ps.107.9 million, or 17.3%, reflecting the AEF acquisition.
During the last twelve months, the Company added a total of 109 branches to its network, eight of which were added during the quarter and 97 resulted from the acquisition of AEF and AFI. Out of the eight additional branches, two were opened by Finsol Brazil, two by Finsol Mexico, three by AEF and one by AFI, bringing the total network to 478 units at the end of the quarter.
Table 6: Net Operating Income* |
Change |
|||||||||
2Q11 |
1Q11 |
2Q10 |
QoQ % |
YoY % |
6M11 |
6M10 |
% Change |
|||
Financial Margin |
904.0 |
787.3 |
758.6 |
14.8% |
19.2% |
1,691.3 |
1,526.1 |
10.8% |
||
Provision for Loan Losses |
307.8 |
233.2 |
246.3 |
32.0% |
24.9% |
541.0 |
487.0 |
11.1% |
||
Financial Margin After Provision for Loan Losses |
596.2 |
554.0 |
512.3 |
7.6% |
16.4% |
1,150.3 |
1,039.1 |
10.7% |
||
Non-Interest Income, net |
193.9 |
190.9 |
176.2 |
1.5% |
10.0% |
384.8 |
349.6 |
10.1% |
||
- Commissions and Fees Collected |
208.5 |
203.4 |
188.5 |
2.5% |
10.6% |
411.9 |
371.2 |
11.0% |
||
- Commissions and Fees Paid |
14.7 |
12.5 |
12.3 |
17.6% |
19.2% |
27.1 |
21.7 |
25.2% |
||
Market Related Income |
0.1 |
-14.9 |
118.9 |
-100.5% |
-99.9% |
-14.9 |
124.3 |
-111.9% |
||
Other income (expense) of the operation |
13.6 |
12.0 |
14.2 |
12.9% |
-4.6% |
25.6 |
39.8 |
-35.8% |
||
Net Operating Revenue |
803.7 |
742.1 |
821.6 |
8.3% |
-2.2% |
1,545.8 |
1,552.8 |
-0.4% |
||
Non-Interest Expense |
732.6 |
624.7 |
661.0 |
17.3% |
10.8% |
1,357.2 |
1,226.1 |
10.7% |
||
- Other Administrative & Operational Expenses |
256.2 |
201.7 |
204.9 |
27.0% |
25.1% |
457.9 |
375.1 |
22.1% |
||
- Salaries & Employee Benefits |
476.4 |
423.0 |
456.1 |
12.6% |
4.4% |
899.3 |
851.0 |
5.7% |
||
Net Operating Income |
71.2 |
117.4 |
160.6 |
-39.4% |
-55.7% |
188.6 |
326.7 |
-42.3% |
||
Operational Data |
||||||||||
Number of Offices |
478 |
470 |
369 |
1.7% |
29.5% |
478 |
369 |
29.5% |
||
- Financiera Independencia |
207 |
207 |
206 |
0.0% |
0.5% |
207 |
206 |
0.5% |
||
- Finsol |
170 |
166 |
163 |
2.4% |
4.3% |
170 |
163 |
4.3% |
||
- Apoyo Economico Familiar |
99 |
96 |
0 |
3.1% |
n/a |
99 |
0 |
n/a |
||
- Apoyo Financiero Inc |
2 |
1 |
0 |
100.0% |
n/a |
2 |
0 |
n/a |
||
Total Labor Force |
10,734 |
10,460 |
11,133 |
2.6% |
-3.6% |
10,734 |
11,133 |
-3.6% |
||
- Financiera Independencia |
7,488 |
7,460 |
9,796 |
0.4% |
-23.6% |
7,488 |
9,796 |
-23.6% |
||
- Finsol |
1,732 |
1,584 |
1,337 |
9.3% |
29.5% |
1,732 |
1,337 |
29.5% |
||
- Apoyo Economico Familiar |
1,506 |
1,410 |
0 |
6.8% |
n/a |
1,506 |
0 |
n/a |
||
- Apoyo Financiero Inc |
8 |
6 |
0 |
33.3% |
n/a |
8 |
0 |
n/a |
||
* Financial data in millions of Mexican Pesos. |
||||||||||
________________________
2 average interest rate paid = interest expense / daily average balance of interest bearing liabilities for the period.
Net Income
As a result of the factors discussed above, and after other income and expenses, and income tax, net income for 2Q11 decreased 36.7% on a sequential basis and 60.3% year-on-year to Ps.57.0 million.
Earnings per share (EPS) for the quarter were Ps.0.0796 compared with Ps.0.2004 for the same period last year.
Apoyo Economico Familiar Contribution
During 2Q11 AEF generated financial margin after provisions of Ps.155.6 million, or 26.1% of consolidated results, and net operating revenue of Ps.171.4 million, or 21.3% of consolidated results. Additionally, AEF contributed with Ps.138.9 million of non-Interest expense, or 18.9% of consolidated results.
Apoyo Financiero Inc. Contribution
During 2Q11 AFI generated financial margin after provisions of Ps.2.5 million, or 0.4% of consolidated results, and net operating revenue of Ps.2.1 million. Additionally, AFI contributed with Ps.2.8 million of non-Interest expense, or 0.4% of consolidated results.
FINANCIAL POSITION
Total Loan Portfolio
The total loan portfolio rose year-on-year by 25.2% to Ps.6,742.9 million, reflecting a 12.5% increase in the number of clients during the period, and an 11.2% increase in the average outstanding balance. At the end of the quarter, Findep had a total of 1,512,141 clients, of which 257,161 were Finsol clients, 118,995 were AEF clients and 1,088 were AFI clients.
As of June 30, 2011, the total loan portfolio represented 64.3% of Findep's total assets, compared with 61.2% as of June 30, 2010. Cash and Investments represented 6.3% of total assets for 2Q11 compared with 17.3% in 2Q10.
Non-Performing Loan Portfolio
Total non-performing loans reached Ps.662.9 million, up 23.7% on a sequential basis from Ps.535.9 million and 9.5% year-over-year. The NPL ratio declined to 9.8% in 2Q11 from 11.2% in 2Q10, but increased from 8.2% in 1Q11. Excluding Finsol, AEF, and AFI, total non-performing loans reached Ps.596.9 million, up 1.7% year-on-year.
The NPL ratio for the CrediInmediato product in 2Q11 was 13.2%, compared with 13.0% in 2Q10. The NPL ratio for Independencia's individual informal segment was 13.4% in 2Q11, from 12.3% in 2Q10. The NPL ratio in 2Q11 for the group lending segment (Finsol) was 4.8% in Mexico and 2.9% in Brazil, compared to 1.8% and 3.8% respectively, in 2Q10. The year-on-year increase in Finsol Mexico's NPLs is mainly the result of a higher exposure in the loan portfolio to clients within their first three loan cycles which historically experience higher NPL rates than those with a history of more than three cycles. The higher year-on-year exposure to clients within the first three loan cycles reflects the rapid loan growth at Finsol following its acquisition. Before that, due to funding constraints, Finsol was not able to renew loans for the majority of its existing clients. As the portfolio matures, non-performing loans are expected to stabilize.
For the quarter, AEF's NPL ratio stood at 1.1% compared to 1.0% in 1Q11.
The coverage ratio for 2Q11 was 69.6%, compared with 75.5% in 1Q11 and 68.9% in 2Q10. Default probabilities of the loan portfolio increased on a sequential basis, but are still below 2Q10 levels. The lower quarter-on-quarter coverage ratio reflects the Company's forward looking provisioning methodology, which considers the last twelve months moving average of default probabilities thus smoothing short-term peaks and valleys in NPL behavior. As a result, during the quarter, the allowance for loan losses grew at a slower rate than non-performing loans. The year-on-year increase reflects AEF's high coverage ratio.
Liabilities
As of June 30, 2011 total liabilities were Ps.7,510.3 million, a 29.5% increase from Ps.5,799.4 million reported on June 30, 2010. The year-on-year increase was the result of the AEF acquisition as well as higher working capital needs. On a sequential comparison, total liabilities increased 7.6% from Ps.6,979.3 million in March 31, 2010 mainly due to the growth of the Company's loan portfolio during the period.
During the quarter, Findep announced the successful placement of Ps.1,500 million 3-year term unsecured Certificados Bursatiles. The Notes pay an interest rate equivalent to TIIE 28 days plus 265 basis points. Funds are being applied to increase the Company's loan portfolio, make capital expenditures related to expanding its distribution network, refinance and pay down debt and for general corporate purposes. The Notes were the first tranche of a Ps.2,000 million Certificados Bursatiles program with a 5-year maturity filed with the Comision Nacional Bancaria y de Valores in Mexico.
At the end of 2Q11, Findep's debt consisted of Ps.2,614.0 million (US$200 million) of senior guaranteed notes due March 2015, Ps.1,500.0 million in medium-term notes "Certificados Bursatiles" due May 2014, as well as Ps.2,546.3 million of bank and other entities loans. The Company's total available lines of credit amounted to Ps.4,484 million at the end of 2Q11, including Finsol and AEF lines.
Of the total lines of credit, Ps.15.0 million are due in October 2011, Ps.339 million in January 2012, Ps.1,330 million in December 2012, Ps.1,520 million in December 2013, and the remaining Ps.1,280 million have an evergreen feature. These amounts include the available lines of credit of Finsol and AEF.
In June 2010, the Company purchased an interest rate cap to hedge for a period of twelve months starting October 8, 2010 for any increase in TIIE beyond 7.0% for a notional amount of Ps.5,500 million.
Stockholders' Equity
As of June 30, 2011 stockholder's equity was Ps.2,981.7 million, a 0.8% decrease from Ps.3,006.1 million in the same year-ago period. This decrease principally reflects the Ps.150.3 million dividend paid for 2010 partially offset by net income generated during the current period.
As a result of the revaluation of foreign currency denominated debt and the underlying derivatives position to hedge foreign exchange risk, there is a Ps.88.7 million impact recorded as Financial Instruments - Derivatives. This impact will be naturally eliminated as the contract progresses and expires. The breakdown of this impact is as follows: negative Ps.391.1 million from marking to market the Cross Currency Swap, Ps.269.4 million from the revalorization of the bond, Ps.38.0 million in differed taxes, and negative Ps.5.0 million from hedge-ineffectiveness.
PROFITABILITY AND EFFICIENCY RATIOS
ROAE/ROAA
ROAE for 2Q11 was 7.6% compared with 19.8% in 2Q10 and 12.1% in 1Q11. These figures reflect the Ps.850 million capital increase in 1Q10.
ROAA for 2Q11 was 2.2% compared with 6.0% in 2Q10 and 3.9% in 1Q11.
Efficiency Ratio & Operating Efficiency
From 2Q10 to 2Q11 Independencia increased the size of its loan portfolio by 25.2% and the number of clients by 12.5%. During the quarter, the Company added a net of 8 offices and increased its total labor force by 2.6% to 10,734 people.
During 2Q11 the Company's efficiency ratio was 91.1%, compared with 80.5% in 2Q10 and 84.2% in 1Q11. The year-on-year increase is principally the result of the 24.9% rise in provisions for loan losses during the period and the increase in interest expense as a result of the AEF and AFI acquisitions. Excluding provisions for loan losses, the efficiency ratio in 2Q11 was 65.9% compared to 61.9% in 2Q10. Operating efficiency was 28.6% in 2Q11, up 0.8 pps year-on-year and 1.8 pps quarter-on-quarter.
DISTRIBUTION NETWORK
At the end of the quarter, Independencia operated 478 offices in Mexico, Brazil, and the US. This includes 453 offices in Mexico of which 207 operated under the Financiera Independencia brand name, 147 offices under the Finsol brand name, and 99 offices under the Apoyo Economico Familiar brand name. The Company also operated 23 branches in Brazil under the Finsol Brazil brand name, and two branches in San Francisco, CA under the Apoyo Financiero Inc. brand name.
The Company's total loan portfolio is well diversified and no federal entity represents more than 10.2% of the total loan portfolio. The three federal entities with the highest loan portfolio concentration are Veracruz, Tamaulipas and Estado de Mexico, with a 10.2%, 8.1%, and 7.8% share of the total portfolio, respectively.
KEY EVENTS
Financiera Independencia Announces Successful Closing of Ps.1,500 million Medium Term Certificados Bursatiles
On May 17, 2011 Independencia announced that it successfully placed Ps.1,500 million aggregate principal amount of Certificados Bursatiles ("the Notes"). The Notes are unsecured, have a 3-year maturity and pay an interest rate equivalent to TIIE 28 days plus 265 basis points. The Notes were rated A(mex) by Fitch Ratings and HR A by HR Ratings. Net proceeds are being used to increase the Company's loan portfolio, make capital expenditures related to expanding its distribution network, pay down debt and for general corporate purposes. The Notes were the first tranche of a Ps.2,000 million Certificados Bursatiles program with a 5-year maturity filed with the Comision Nacional Bancaria y de Valores in Mexico.
2Q11 EARNINGS CONFERENCE CALL |
|||
Day: |
Thursday, July 28, 2011 |
||
Time: |
11:00 AM US ET; 10:00 AM Mexico City time |
||
Dial-in number: |
866-393-9621 (US & Canada) |
||
706-758-4196 (International & Mexico) |
|||
Access Code: |
81083400 |
||
Web cast: |
A live web cast of the conference call and replay will be available at www.findep.mx |
||
Replay: |
Starting at 12:00 pm EDT on July 28 and ending at 11:59 pm ET on August 4, 2011. The replay is accessible by dialing 800-642-1687 (U.S./Canada) or 706-645-9291 (international) and entering passcode 81083400. |
||
About Financiera Independencia:
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (Independencia), is a Mexican microfinance lender of personal loans to individuals and working capital loans through group lending microfinance. Independencia provides microcredit loans on an unsecured basis to individuals in the low-income segments in Mexico in urban areas of both the formal and informal economy. As of June 30, 2011, Independencia had a total outstanding loan balance of Ps.6,742.9 million, operated 478 offices in Mexico, Brazil, and the US and had a total labor force of 10,734 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". On November 30, 2009 Independencia launched a sponsored Level I American Depositary Receipt (ADR) program in the United States. Each ADR represents 15 shares of Independencia 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 Financiera Independencia'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.
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. |
|||||||||||||
Consolidated Income Statement |
|||||||||||||
For the Three and Six Months Periods Ended June 30, 2011 and 2010 |
|||||||||||||
(Millions of Mexican Pesos) |
|||||||||||||
2Q11 vs 2Q10 |
|||||||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
Absolute |
% |
6M11 |
6M10 |
Absolute |
% |
|||
Interest Income |
1,092.7 |
949.8 |
948.9 |
897.1 |
901.4 |
191.3 |
21.2% |
2,042.5 |
1,749.7 |
292.8 |
16.7% |
||
Interest Expense |
188.7 |
162.5 |
159.0 |
121.9 |
142.8 |
45.9 |
32.1% |
351.2 |
223.6 |
127.6 |
57.1% |
||
Financial Margin |
904.0 |
787.3 |
789.8 |
775.2 |
758.6 |
145.4 |
19.2% |
1,691.3 |
1,526.1 |
165.2 |
10.8% |
||
Provision for Loan Losses |
307.8 |
233.2 |
243.1 |
241.3 |
246.3 |
61.4 |
24.9% |
541.0 |
487.0 |
53.9 |
11.1% |
||
Financial Margin After Provision for Loan Losses |
596.2 |
554.0 |
546.7 |
533.8 |
512.3 |
83.9 |
16.4% |
1,150.3 |
1,039.1 |
111.2 |
10.7% |
||
Commissions and Fees Collected |
208.5 |
203.4 |
204.7 |
199.8 |
188.5 |
20.0 |
10.6% |
411.9 |
371.2 |
40.7 |
11.0% |
||
Commissions and Fees Paid |
14.7 |
12.5 |
12.3 |
12.8 |
12.3 |
2.4 |
19.2% |
27.1 |
21.7 |
5.5 |
25.2% |
||
Market Related Income |
0.07 |
(14.9) |
4.2 |
(33.1) |
118.9 |
(118.8) |
(99.9%) |
(14.9) |
124.3 |
(139.2) |
(111.9%) |
||
Other income (expense) of the operation |
13.6 |
12.0 |
12.5 |
15.2 |
14.2 |
(0.7) |
(4.6%) |
25.6 |
39.8 |
(14.3) |
(35.8%) |
||
Net Operating Revenue |
803.7 |
742.1 |
755.8 |
703.0 |
821.6 |
(17.9) |
(2.2%) |
1,545.8 |
1,552.8 |
(7.0) |
(0.4%) |
||
Non-Interest Expense |
732.6 |
624.7 |
686.0 |
594.4 |
661.0 |
71.6 |
10.8% |
1,357.2 |
1,226.1 |
131.1 |
10.7% |
||
Net Operating Income |
71.2 |
117.4 |
69.8 |
108.6 |
160.6 |
(89.4) |
(55.7%) |
188.6 |
326.7 |
(138.1) |
(42.3%) |
||
Other Income (expense) - Net |
19.7 |
4.6 |
23.9 |
10.3 |
12.8 |
6.9 |
53.6% |
24.3 |
30.3 |
(6.0) |
(19.7%) |
||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
90.9 |
122.0 |
93.7 |
118.9 |
173.4 |
(82.5) |
(47.6%) |
212.9 |
356.9 |
(144.0) |
(40.4%) |
||
Income Tax and Employees' Statutory Profit Sharing |
|||||||||||||
Current |
65.8 |
83.0 |
19.9 |
21.3 |
(19.2) |
84.9 |
(443.1%) |
148.7 |
60.3 |
88.4 |
146.5% |
||
Deferred |
(31.7) |
(50.9) |
20.3 |
(15.3) |
49.2 |
(80.8) |
(164.4%) |
(82.6) |
11.2 |
(93.8) |
(835.3%) |
||
Total Income Before Minority Interest |
56.8 |
89.9 |
53.4 |
112.9 |
143.5 |
(86.6) |
(60.4%) |
146.7 |
285.4 |
(138.6) |
(48.6%) |
||
Minority Interest |
0.1 |
0.1 |
- |
- |
- |
0.1 |
n/a |
0.2 |
- |
0.2 |
n/a |
||
Net Income |
57.0 |
90.0 |
53.4 |
112.9 |
143.5 |
(86.5) |
(60.3%) |
147.0 |
285.4 |
(138.4) |
(48.5%) |
||
Weighted Average Number of Shares |
715.9 |
715.9 |
715.9 |
715.9 |
715.9 |
- |
0.0% |
715.9 |
715.9 |
- |
0.0% |
||
EPS |
0.0796 |
0.1258 |
0.0746 |
0.1577 |
0.2004 |
(0.1208) |
(60.3%) |
0.2053 |
0.3986 |
(0.1933) |
(48.5%) |
||
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. |
|||||||||
Consolidated Balance Sheet |
|||||||||
As of June 30, 2011 and 2010 |
|||||||||
(Millions of Mexican Pesos) |
|||||||||
2Q11 vs 2Q10 |
|||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
Absolute |
% |
|||
ASSETS |
|||||||||
Cash |
133.3 |
172.6 |
153.7 |
153.6 |
136.8 |
(3.5) |
(2.5%) |
||
Investments in Securities |
522.5 |
297.3 |
702.0 |
1,026.1 |
1,387.9 |
(865.4) |
(62.4%) |
||
Cash and Cash Equivalents |
655.9 |
469.9 |
855.7 |
1,179.8 |
1,524.7 |
(868.8) |
(57.0%) |
||
Performing Loans |
6,080.0 |
6,025.8 |
5,202.8 |
5,017.5 |
4,781.2 |
1,298.9 |
27.2% |
||
Non-Performing Loans |
662.9 |
535.9 |
570.2 |
585.8 |
605.6 |
57.3 |
9.5% |
||
Total Loan Portfolio |
6,742.9 |
6,561.7 |
5,773.0 |
5,603.3 |
5,386.8 |
1,356.2 |
25.2% |
||
Allowances for Loan Losses |
(461.4) |
(404.8) |
(375.5) |
(398.1) |
(417.4) |
(44.1) |
10.6% |
||
Total Loan Portfolio - Net |
6,281.5 |
6,156.9 |
5,397.6 |
5,205.2 |
4,969.4 |
1,312.1 |
26.4% |
||
Other Accounts Receivable - Net |
397.7 |
205.7 |
410.6 |
247.4 |
228.7 |
168.9 |
73.9% |
||
Property, Plant & Equipment - Net |
451.7 |
461.4 |
403.3 |
378.6 |
373.6 |
78.1 |
20.9% |
||
Deferred Income Tax |
851.5 |
833.6 |
708.4 |
683.4 |
671.9 |
179.5 |
26.7% |
||
Derivative Financial Instruments |
- |
- |
- |
- |
175.2 |
(175.2) |
(100.0%) |
||
Other Assets |
1,853.8 |
1,845.9 |
903.7 |
906.0 |
861.8 |
992.0 |
115.1% |
||
Total Assets |
10,492.0 |
9,973.5 |
8,679.2 |
8,600.3 |
8,805.5 |
1,686.6 |
19.2% |
||
LIABILITIES |
|||||||||
Commercial Paper |
1,504.7 |
784.0 |
787.1 |
785.5 |
784.7 |
720.0 |
91.7% |
||
Bank and Other Entities Loans |
5,155.6 |
5,683.5 |
4,342.5 |
4,385.1 |
4,729.2 |
426.4 |
9.0% |
||
Derivative Financial Instruments |
396.1 |
315.5 |
232.4 |
166.6 |
- |
396.1 |
n/a |
||
Other Accounts Payable |
453.9 |
196.3 |
370.7 |
275.2 |
285.5 |
168.4 |
59.0% |
||
Total Liabilities |
7,510.3 |
6,979.3 |
5,732.6 |
5,612.4 |
5,799.4 |
1,710.9 |
29.5% |
||
STOCKHOLDERS' EQUITY |
|||||||||
Capital Stock |
157.2 |
157.2 |
157.2 |
157.2 |
157.2 |
- |
0.0% |
||
Additional Paid-In Capital |
1,579.2 |
1,577.4 |
1,550.8 |
1,549.2 |
1,545.4 |
33.7 |
2.2% |
||
Capital Reserves |
14.3 |
14.3 |
14.3 |
14.3 |
14.3 |
0.0 |
0.1% |
||
Retained Earnings |
1,163.6 |
1,205.2 |
837.3 |
941.9 |
1,003.7 |
159.9 |
15.9% |
||
Net Income for the Year |
147.0 |
90.0 |
451.7 |
398.3 |
285.4 |
(138.4) |
(48.5%) |
||
Financial Instruments - Derivatives |
(88.7) |
(59.2) |
(64.7) |
(73.0) |
- |
(88.7) |
n/a |
||
Minority Interest |
9.2 |
9.3 |
- |
- |
- |
9.2 |
n/a |
||
Total Stockholders' Equity |
2,981.7 |
2,994.2 |
2,946.6 |
2,987.9 |
3,006.0 |
(24.3) |
(0.8%) |
||
Total Liabilities and Stockholders' Equity |
10,492.0 |
9,973.5 |
8,679.2 |
8,600.3 |
8,805.5 |
1,686.6 |
19.2% |
||
Finsol Mexico |
|||||||||||
Income Statement |
|||||||||||
For the Three Months Periods Ended June 30, 2011 and 2010 |
|||||||||||
(Millions of Mexican Pesos) |
|||||||||||
2Q11 vs 1Q11 |
|||||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
From Feb.20, '10 to Mar. 31, '10 |
Absolute |
% |
6M11 |
|||
Interest Income |
173.8 |
178.4 |
163.1 |
134.3 |
119.1 |
49.5 |
(4.6) |
(2.6%) |
352.2 |
||
Interest Expense |
17.3 |
29.7 |
31.9 |
26.0 |
21.2 |
9.0 |
(12.4) |
(41.7%) |
47.0 |
||
Financial Margin |
156.5 |
148.8 |
131.3 |
108.3 |
97.8 |
40.5 |
7.7 |
5.2% |
305.3 |
||
Provision for Loan Losses |
34.5 |
40.1 |
34.3 |
20.1 |
11.0 |
3.9 |
(5.6) |
(14.0%) |
74.7 |
||
Financial Margin After Provision for Loan Losses |
122.0 |
108.6 |
96.9 |
88.2 |
86.8 |
36.6 |
13.3 |
12.3% |
230.6 |
||
Commissions and Fees Collected |
0.0 |
(0.0) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
(496.7%) |
0.0 |
||
Commissions and Fees Paid |
4.2 |
3.6 |
4.1 |
4.0 |
3.5 |
2.1 |
0.6 |
16.9% |
7.8 |
||
Market Related Income |
(0.0) |
0.5 |
(0.4) |
0.2 |
0.7 |
0.9 |
(0.6) |
(107.1%) |
0.5 |
||
Net Operating Revenue |
117.8 |
105.6 |
92.4 |
84.4 |
84.1 |
35.4 |
12.2 |
11.6% |
223.3 |
||
Non-Interest Expense |
98.5 |
95.7 |
90.5 |
87.4 |
125.2 |
49.1 |
2.8 |
2.9% |
194.2 |
||
Net Operating Income |
19.2 |
9.9 |
1.9 |
(3.0) |
(41.2) |
(13.6) |
9.4 |
95.2% |
29.1 |
||
Other Income (expense) - Net |
2.0 |
2.3 |
4.6 |
7.0 |
2.7 |
7.3 |
(0.3) |
(12.3%) |
4.3 |
||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
21.3 |
12.2 |
6.6 |
4.0 |
(38.5) |
(6.4) |
9.1 |
74.7% |
33.4 |
||
Income Tax and Employees' Statutory Profit Sharing |
|||||||||||
Current |
- |
- |
10.8 |
- |
(27.7) |
- |
- |
n/a |
- |
||
Deferred |
8.0 |
0.9 |
(5.3) |
(14.3) |
(7.6) |
(1.2) |
7.2 |
805.5% |
8.9 |
||
Total Income Before Minority Interest |
13.2 |
11.3 |
1.0 |
18.3 |
(3.2) |
(5.2) |
1.9 |
17.2% |
24.5 |
||
Net Income |
13.2 |
11.3 |
1.0 |
18.3 |
(3.2) |
(5.2) |
1.9 |
17.2% |
24.5 |
||
Finsol Mexico |
|||||||||
Balance Sheet |
|||||||||
As of June 30, 2010 |
|||||||||
(Millions of Mexican Pesos) |
|||||||||
2Q11 vs 1Q11 |
|||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
1Q10 |
Absolute |
% |
||
ASSETS |
|||||||||
Cash and Cash Equivalents |
345.4 |
113.3 |
193.1 |
167.4 |
116.4 |
114.7 |
232.2 |
204.9% |
|
Performing Loans |
822.7 |
839.6 |
837.0 |
661.9 |
546.5 |
511.7 |
(16.9) |
(2.0%) |
|
Non-Performing Loans |
41.3 |
37.3 |
23.0 |
13.4 |
10.2 |
12.4 |
3.9 |
10.6% |
|
Total Loan Portfolio |
864.0 |
876.9 |
860.0 |
675.4 |
556.7 |
524.1 |
(12.9) |
(1.5%) |
|
Allowances for Loan Losses |
(67.5) |
(69.3) |
(52.3) |
(30.7) |
(20.1) |
(20.8) |
1.8 |
(2.7%) |
|
Total Loan Portfolio - Net |
796.5 |
807.6 |
807.8 |
644.7 |
536.6 |
503.3 |
(11.1) |
(1.4%) |
|
Assets, Accounts Receivable & Other Assets |
285.0 |
642.2 |
884.6 |
781.7 |
632.7 |
619.8 |
(357.3) |
(55.6%) |
|
Total Assets |
1,426.9 |
1,563.1 |
1,885.5 |
1,593.8 |
1,285.7 |
1,237.8 |
(136.2) |
(8.7%) |
|
LIABILITIES |
|||||||||
Bank and Other Entities Loans |
851.1 |
732.4 |
370.2 |
499.4 |
546.1 |
817.2 |
118.7 |
16.2% |
|
Other Accounts Payable |
275.6 |
543.0 |
1,238.9 |
819.0 |
467.5 |
145.3 |
(267.4) |
(49.2%) |
|
Total Liabilities |
1,126.7 |
1,275.4 |
1,609.1 |
1,318.4 |
1,013.6 |
962.5 |
(148.7) |
(11.7%) |
|
Total Stockholders' Equity |
300.2 |
287.7 |
276.4 |
275.4 |
272.1 |
275.3 |
12.5 |
4.3% |
|
Total Liabilities and Stockholders' Equity |
1,426.9 |
1,563.1 |
1,885.5 |
1,593.8 |
1,285.7 |
1,237.8 |
(136.2) |
(8.7%) |
|
Finsol Brasil |
|||||||||||
Income Statement |
|||||||||||
For the Three Months Periods Ended June 30, 2011 and 2010 |
|||||||||||
(Millions of Mexican Pesos) |
|||||||||||
2Q11 vs 1Q11 |
|||||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
From Feb.20, '10 to Mar.31, '10 |
Absolute |
% |
6M11 |
|||
Interest Income |
53.2 |
55.1 |
51.5 |
41.4 |
33.9 |
19.9 |
(1.9) |
(3.4%) |
108.3 |
||
Interest Expense |
18.4 |
17.9 |
10.7 |
10.4 |
11.7 |
6.6 |
0.5 |
2.9% |
36.2 |
||
Financial Margin |
34.9 |
37.2 |
40.8 |
31.0 |
22.2 |
13.3 |
(2.4) |
(6.4%) |
72.1 |
||
Provision for Loan Losses |
6.3 |
3.9 |
1.3 |
0.1 |
1.2 |
1.1 |
2.4 |
61.0% |
10.2 |
||
Financial Margin After Provision for Loan Losses |
28.6 |
33.3 |
39.4 |
30.9 |
21.0 |
12.2 |
(4.8) |
(14.3%) |
61.9 |
||
Commissions and Fees Paid |
0.8 |
0.8 |
0.8 |
0.7 |
0.6 |
0.4 |
(0.0) |
(5.9%) |
1.6 |
||
Market Related Income |
1.2 |
(10.8) |
0.9 |
6.9 |
7.9 |
(0.6) |
12.0 |
(110.8%) |
(9.7) |
||
Net Operating Revenue |
29.0 |
21.7 |
39.5 |
37.1 |
28.3 |
11.2 |
7.3 |
33.6% |
50.7 |
||
Non-Interest Expense |
40.7 |
37.1 |
33.1 |
31.8 |
26.0 |
13.8 |
3.6 |
9.7% |
77.8 |
||
Net Operating Income |
(11.7) |
(15.4) |
6.3 |
5.3 |
2.4 |
(2.6) |
3.7 |
(23.9%) |
(27.1) |
||
Other Income (expense) - Net |
0.1 |
0.3 |
0.4 |
0.9 |
0.9 |
5.0 |
(0.2) |
(71.9%) |
0.3 |
||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
(11.7) |
(15.1) |
6.7 |
6.1 |
3.3 |
2.4 |
3.5 |
(23.0%) |
(26.8) |
||
Net Income |
(11.7) |
(15.1) |
6.7 |
6.1 |
3.3 |
2.4 |
3.5 |
(23.0%) |
(26.8) |
||
Finsol Brasil |
|||||||||
Balance Sheet |
|||||||||
As of June 30, 2010 |
|||||||||
(Millions of Mexican Pesos) |
|||||||||
2Q11 vs 1Q11 |
|||||||||
2Q11 |
1Q11 |
4Q10 |
3Q10 |
2Q10 |
1Q10 |
Absolute |
% |
||
ASSETS |
|||||||||
Cash and Cash Equivalents |
45.8 |
113.7 |
32.0 |
30.3 |
19.0 |
34.9 |
(67.9) |
(59.7%) |
|
Performing Loans |
444.0 |
395.4 |
394.1 |
291.9 |
218.2 |
191.6 |
48.6 |
12.3% |
|
Non-Performing Loans |
13.2 |
7.7 |
5.6 |
6.3 |
8.5 |
11.0 |
5.6 |
72.6% |
|
Total Loan Portfolio |
457.2 |
403.1 |
399.7 |
298.2 |
226.7 |
202.6 |
54.2 |
13.4% |
|
Allowances for Loan Losses |
(13.2) |
(7.7) |
(5.6) |
(6.3) |
(10.6) |
(13.6) |
(5.6) |
72.6% |
|
Total Loan Portfolio - Net |
444.0 |
395.4 |
394.1 |
291.9 |
216.1 |
189.0 |
48.6 |
12.3% |
|
Assets, Accounts Receivable & Other Assets |
17.1 |
16.3 |
11.2 |
11.3 |
10.0 |
9.9 |
0.8 |
4.9% |
|
Total Assets |
506.9 |
525.4 |
437.2 |
333.5 |
245.1 |
233.8 |
(18.5) |
(3.5%) |
|
LIABILITIES |
|||||||||
Bank and Other Entities Loans |
363.0 |
339.3 |
- |
- |
53.1 |
49.6 |
23.7 |
7.0% |
|
Other Accounts Payable |
311.4 |
341.9 |
575.1 |
478.1 |
343.5 |
332.2 |
(30.5) |
(8.9%) |
|
Total Liabilities |
674.4 |
681.2 |
575.1 |
478.1 |
396.5 |
381.8 |
(6.8) |
(1.0%) |
|
Total Stockholders' Equity |
(167.5) |
(155.9) |
(137.9) |
(144.6) |
(151.5) |
(148.0) |
(11.7) |
7.5% |
|
Total Liabilities and Stockholders' Equity |
506.9 |
525.4 |
437.2 |
333.5 |
245.1 |
233.8 |
(18.5) |
(3.5%) |
|
Apoyo Economico Familiar |
||||||
Income Statement |
||||||
For the Three Periods Ended June 30, 2011 |
||||||
(Millions of Mexican Pesos) |
||||||
2Q11 |
From 3/15/11 to 3/31/11 |
From 1/1/11 to 3/14/11 |
6M11 |
|||
Interest Income |
194.8 |
35.1 |
149.2 |
379.1 |
||
Interest Expense |
16.3 |
3.1 |
18.6 |
37.9 |
||
Financial Margin |
178.5 |
32.0 |
130.7 |
341.2 |
||
Provision for Loan Losses |
22.9 |
3.5 |
18.0 |
44.4 |
||
Financial Margin After Provision for Loan Losses |
155.6 |
28.6 |
112.6 |
296.8 |
||
Commissions and Fees Collected |
14.3 |
4.3 |
16.3 |
34.8 |
||
Commissions and Fees Paid |
0.5 |
0.1 |
0.3 |
1.0 |
||
Market Related Income |
(0.1) |
(0.0) |
(0.1) |
(0.2) |
||
Other income (expense) of the operation |
2.0 |
0.5 |
1.3 |
3.9 |
||
Net Operating Revenue |
171.4 |
33.2 |
129.9 |
334.4 |
||
Non-Interest Expense |
138.9 |
22.6 |
113.8 |
275.4 |
||
Net Operating Income |
32.5 |
10.5 |
16.0 |
59.0 |
||
Other Income (expense) - Net |
8.6 |
0.0 |
0.0 |
8.6 |
||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
41.1 |
10.5 |
16.0 |
67.6 |
||
Income Tax and Employees' Statutory Profit Sharing |
||||||
Current |
14.9 |
5.3 |
4.5 |
24.8 |
||
Deferred |
(3.0) |
(2.4) |
0.2 |
(5.2) |
||
Total Income Before Minority Interest |
29.1 |
7.6 |
11.3 |
48.0 |
||
Net Income |
29.1 |
7.6 |
11.3 |
48.0 |
||
Apoyo Economico Familiar |
|||||||
Balance Sheet |
|||||||
As of June 30, 2011 |
|||||||
(Millions of Mexican Pesos) |
|||||||
Change |
|||||||
2Q11 |
1Q11 |
as of Mar. 14, 2011 |
Absolute |
% |
|||
ASSETS |
|||||||
Cash and Cash Equivalents |
34.8 |
56.6 |
72.9 |
(21.8) |
(38.6%) |
||
Performing Loans |
875.1 |
833.6 |
822.5 |
41.5 |
5.0% |
||
Non-Performing Loans |
9.9 |
8.7 |
8.5 |
1.2 |
14.0% |
||
Total Loan Portfolio |
885.0 |
842.3 |
831.0 |
42.7 |
5.1% |
||
Allowances for Loan Losses |
(34.6) |
(34.6) |
(34.6) |
- |
0.0% |
||
Total Loan Portfolio - Net |
850.4 |
807.7 |
796.4 |
42.7 |
5.3% |
||
Assets, Accounts Receivable & Other Assets |
176.4 |
187.3 |
189.0 |
(10.9) |
(5.8%) |
||
Total Assets |
1,061.6 |
1,051.6 |
1,058.4 |
10.0 |
0.9% |
||
LIABILITIES |
|||||||
Bank and Other Entities Loans |
65.4 |
81.7 |
87.2 |
(16.2) |
(19.9%) |
||
Other Accounts Payable |
743.6 |
747.2 |
755.9 |
(3.6) |
(0.5%) |
||
Total Liabilities |
809.0 |
828.8 |
843.2 |
(19.9) |
(2.4%) |
||
Total Stockholders' Equity |
252.6 |
222.8 |
215.2 |
29.8 |
13.4% |
||
Total Liabilities and Stockholders' Equity |
1,061.6 |
1,051.6 |
1,058.4 |
10.0 |
0.9% |
||
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. |
||||||||||
Key Ratios & Operating Data |
||||||||||
For the Three and Six Months Periods Ended June 30, 2011 and 2010 |
||||||||||
(Millions of Mexican Pesos) |
||||||||||
2Q11 |
1Q11 |
2Q10 |
QoQ % |
YoY % |
6M11 |
6M10 |
% |
|||
Key Ratios |
||||||||||
Profitability & Efficiency |
||||||||||
NIM after Provisions Excl. Fees (1) |
33.1% |
32.4% |
26.6% |
0.6 pp |
6.5 pp |
32.8% |
34.0% |
-1.2 pp |
||
NIM after Provisions Incl. Fees (2) |
44.6% |
43.5% |
42.6% |
1.1 pp |
1.9 pp |
44.1% |
50.8% |
-6.7 pp |
||
Provisions / Financial Margin |
34.0% |
29.6% |
32.5% |
4.4 pp |
1.6 pp |
32.0% |
31.9% |
0.1 pp |
||
ROAA (3) |
2.2% |
3.9% |
6.0% |
-1.6 pp |
-3.8 pp |
3.1% |
7.7% |
-4.7 pp |
||
ROAE (4) |
7.6% |
12.1% |
19.8% |
-4.5 pp |
-12.2 pp |
9.9% |
23.4% |
-13.5 pp |
||
Efficiency Ratio Incl. Provisions (5) |
91.1% |
84.2% |
80.5% |
7 pp |
10.7 pp |
87.8% |
79.0% |
8.8 pp |
||
Efficiency Ratio Excl. Provisions (6) |
65.9% |
64.0% |
61.9% |
1.9 pp |
4 pp |
65.0% |
60.1% |
4.9 pp |
||
Operating Efficiency (7) |
28.6% |
26.8% |
27.8% |
1.8 pp |
0.8 pp |
28.3% |
33.2% |
-4.9 pp |
||
Fee Income (8) |
24.1% |
25.7% |
21.4% |
-1.6 pp |
2.7 pp |
24.9% |
22.5% |
2.4 pp |
||
Capitalization |
||||||||||
Equity to Total Assets |
28.4% |
30.0% |
34.1% |
-1.6 pp |
-5.7 pp |
28.4% |
34.1% |
-5.7 pp |
||
Credit Quality Ratios |
||||||||||
NPL Ratio (9) |
9.8% |
8.2% |
11.2% |
1.7 pp |
-1.4 pp |
9.8% |
11.2% |
-1.4 pp |
||
Coverage Ratio (10) |
69.6% |
75.5% |
68.9% |
-5.9 pp |
0.7 pp |
69.6% |
68.9% |
0.7 pp |
||
Operating Data |
||||||||||
Number of Clients |
1,512,141 |
1,505,614 |
1,343,900 |
0.4% |
12.5% |
1,512,141 |
1,343,900 |
12.5% |
||
- Formal Sector |
703,180 |
706,564 |
738,111 |
-0.5% |
-4.7% |
703,180 |
738,111 |
-4.7% |
||
- Informal Sector |
431,717 |
429,673 |
443,332 |
0.5% |
-2.6% |
431,717 |
443,332 |
-2.6% |
||
- Finsol Mexico |
210,290 |
212,247 |
132,812 |
-0.9% |
58.3% |
210,290 |
132,812 |
58.3% |
||
- Finsol Brasil |
46,871 |
41,244 |
29,645 |
13.6% |
58.1% |
46,871 |
29,645 |
58.1% |
||
- Apoyo Economico Familiar |
118,995 |
114,870 |
0 |
3.6% |
n/a |
118,995 |
0 |
n/a |
||
- Apoyo Financiero Inc |
1,088 |
1,016 |
0 |
7.1% |
n/a |
1,088 |
0 |
n/a |
||
Number of Offices |
478 |
470 |
369 |
1.7% |
29.5% |
478 |
369 |
29.5% |
||
Total Labor Force |
10,734 |
10,460 |
11,133 |
2.6% |
-3.6% |
10,734 |
11,133 |
-3.6% |
||
(1) Net Interest Margin after Provisions (excluding Fees): Net Interest Margin after Provision for Loan Losses / Average Interest-Earning Assets |
||||||||||
(2) Net Interest Margin after Provisions (including Fees): Net Interest Margin after Provision for Loan Losses + Fees Collected - Fees Paid / Average Interest-Earning Assets |
||||||||||
(3) ROAA: Net Income / Average Total Assets |
||||||||||
(4) ROAE: Net Income / Average Total Equity |
||||||||||
(5) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues |
||||||||||
(6) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues + Provision for Loan Losses |
||||||||||
(7) Operating Efficiency: Non-interest Expense / Average Assets |
||||||||||
(8) Commissions and Fees (Net) / Net Operating Revenue |
||||||||||
(9) NPL Ratio: Non-Performing Loans / Total Loan Portfolio |
||||||||||
(10) Coverage Ratio: Allowances for Loan Losses / Non-Performing Loans |
||||||||||
SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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