Financiera Independencia Reports 3Q11 Net Income of Ps.18.7 Million and Loan Portfolio Growth of 25.4%
MEXICO CITY, Oct. 25, 2011 /PRNewswire/ --
- Total loan portfolio of Ps.7,024.5 million, a 25.4% year-over-year increase, driven by AEF and AFI acquisitions and significant growth at Finsol.
- Independencia's individual new loan origination increased to Ps.1,123.4 million, up 13.6% YoY and 12.8% QoQ.
- Non-performing loans to total loans ratio down to 10.0% in 3Q11 from 10.5% in 3Q10 and up from 9.8% in 2Q11.
- NIM after provisions including fees remained unchanged YoY at 41.1%, but decreased from 44.6% in 2Q11
- Provisions for loan losses increased to 42.4% of financial margin in 3Q11, compared with 31.1% in 3Q10, and 34.0% in 2Q11.
- Net income was down 83.4% YoY, and 67.2% on a sequential basis.
- Equity to total assets of 29.0% compared to 34.7% in 3Q10, and 28.4% in 2Q11.
- ROE in 3Q11 decreased to 2.7% compared to 7.6% in 2Q11, and to 15.1% in 3Q10.
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 nine-month periods ended September 30, 2011. Net income for 3Q11 declined 83.4% YoY to Ps.18.7 million.
Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, "Top line performance remained strong this quarter, with a 25.4% year-on-year increase in our loan portfolio. Finsol continued to be a major growth driver, while the acquisitions of AEF and AFI earlier in the year also contributed to results. We are very satisfied with Independencia's individual loan growth, as this was the second quarter, since December 2009 that we see growth in this business. This confirms the positive trend we began to see in 2Q11. Loan origination at Independencia was up 12.8% quarter-on quarter and 13.6% year-on-year."
Financial & Operational Highlights |
||||||||
3Q11 |
3Q10 |
% |
9M11 |
9M10 |
% |
|||
Income Statement Data |
||||||||
Net Interest Income after Provisions* |
542.0 |
533.8 |
1.5% |
1,692.3 |
1,572.9 |
7.6% |
||
Net Operating Income* |
12.8 |
108.6 |
-88.2% |
201.4 |
435.3 |
-53.7% |
||
Net Income* |
18.7 |
112.9 |
-83.4% |
165.7 |
398.3 |
-58.4% |
||
Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
715.9 |
715.9 |
0.0% |
||
EPS |
0.0261 |
0.1577 |
-83.4% |
0.2314 |
0.5563 |
-58.4% |
||
Profitability & Efficiency |
||||||||
NIM before Provisions Excl. Fees |
50.9% |
45.3% |
5.6 pp |
50.0% |
50.7% |
-0.7 pp |
||
NIM after Provisions Excl. Fees |
29.3% |
31.2% |
-1.9 pp |
32.2% |
34.7% |
-2.5 pp |
||
NIM after Provisions Incl. Fees |
41.1% |
41.1% |
0 pp |
43.8% |
49.7% |
-5.9 pp |
||
ROA |
0.8% |
5.2% |
-4.4 pp |
2.3% |
7.3% |
-5 pp |
||
ROE |
2.7% |
15.1% |
-12.4 pp |
7.5% |
21.9% |
-14.4 pp |
||
Efficiency Ratio Incl. Provisions |
98.3% |
84.5% |
13.8 pp |
91.3% |
80.7% |
10.6 pp |
||
Efficiency Ratio Excl. Provisions |
64.5% |
62.9% |
1.5 pp |
64.8% |
61.0% |
3.8 pp |
||
Operating Efficiency |
28.5% |
27.3% |
1.2 pp |
29.3% |
33.4% |
-4 pp |
||
Fee Income |
22.7% |
26.6% |
-3.9 pp |
24.2% |
23.8% |
0.4 pp |
||
Capitalization |
||||||||
Equity to Total Assets |
29.0% |
34.7% |
-5.8 pp |
29.0% |
34.7% |
-5.8 pp |
||
Credit Quality Ratios |
||||||||
NPL Ratio |
10.0% |
10.5% |
-0.4 pp |
10.0% |
10.5% |
-0.4 pp |
||
Coverage Ratio |
72.7% |
68.0% |
4.8 pp |
72.7% |
68.0% |
4.8 pp |
||
Operational Data |
||||||||
Number of Clients |
1,559,466 |
1,363,913 |
14.3% |
1,559,466 |
1,363,913 |
14.3% |
||
Number of Offices |
491 |
370 |
32.7% |
491 |
370 |
32.7% |
||
Total Loan Portfolio* |
7,024.5 |
5,603.3 |
25.4% |
7,024.5 |
5,603.3 |
25.4% |
||
Average Balance (Ps.) |
4,504.4 |
4,108.3 |
9.6% |
4,504.4 |
4,108.3 |
9.6% |
||
* Figures in millions of Mexican Pesos. |
||||||||
"However, this was a challenging quarter in terms of profitability. We experienced an increase in provisions for loan losses due to a more difficult collections environment and lower than expected results from our external collection agents. We are correcting the situation by reverting the assigned portfolio to our internal force which has proven to be more efficient. A more leveraged balance sheet resulting from recent acquisitions also had a negative impact on our bottom line. As new loans mature and interest expenses are amortized, our levels of profitability are expected to reach historic levels. While economic environment worldwide remains uncertain, the acquisitions undertaken over the past year and a half have transformed Findep into a more resilient and diversified company. This means diversification in terms of our business models, geographic reach, type of loans and customer base," concluded Mr. Gonzalez."
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.
3Q11 CONSOLIDATED RESULTS
Unaudited results for 3Q11 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 3Q11 increased 1.5% year-on-year to Ps.542.0 million. This is principally explained by the following:
Interest Income
Interest income for the quarter increased 26.2% year-on-year to Ps.1,132.3 million, principally as a result of the Ps.246.9 million, or 28.0%, increase in interest income on loans. The total loan portfolio increased 25.4% during the period, driven by a 14.3% growth in the number of clients and a 9.6% increase in the average balance per client. Significant growth in Finsol since its acquisition and the integration of AEF into the Company's balance sheet drove the increase in the number of clients. The higher average balance per client reflects Finsol's larger share of the total loan portfolio, and the considerably higher average balance per client at AEF.
The average balance per client increased from Ps.4,108 in 3Q10 to Ps.4,504 in 3Q11. The average lending rate(1) of the total loan portfolio increased to 65.8% in 3Q11 from 65.3% in 3Q10 and from 65.7% in 2Q11. The increase reflects the complete consolidation of AEF in the Company's results. Excluding AEF, the average lending rate was 62.4%.
Findep's total informal sector loans increased 33.8% year-on-year to Ps.3,480.6 million in 3Q11, representing 49.5% of the loan portfolio. Growth reflects the 45.9% increase in Finsol's group loans combined with the acquisition of AEF. Independencia's individual loans to the informal sector increased 1.5% year-on-year, driven by a 5.7% and 20.3% growth in the CrediPopular and CrediMama products, respectively. Growth was partially offset by a 34.4% decline in the CrediConstruye product. The share of non-Independencia loans to the informal sector increase from 17.4% of Findep's total loans in 3Q10 to 26.0% in 3Q11, reflecting the acquisitions of Finsol and AEF which have contributed to further diversify our business.
The Company's total formal sector loans represented 50.5% of the total loan portfolio and increased by 18.1% to Ps.3,543.9 million in 3Q11, from Ps.3,001.7 million in 3Q10. 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 42.6% of total loans in 3Q11 from 53.6% in 3Q10 and 42.8% in 2Q11. The number of CrediInmediato clients in 3Q11 declined 2.3% year-on-year, while the total loan portfolio of this product fell 0.4% to Ps.2,989.8 million. However, on a sequential basis the number of CrediInmediato clients increased 1.8% and the loan portfolio grew 3.7%. The average balance per contract for CrediInmediato was Ps.4,175 in 3Q11, up 1.9% year-on-year, with the draw-down rate dropping from 73.5% to 71.7%.
Finsol's total loans reached Ps.1,420.3 million in 3Q11, a 7.5% increase from the Ps.1,321.2 million reported in 2Q11 and a 45.9% increase from 3Q10. During 3Q11, a total of Ps.1,096.2 million loans were originated at Finsol Mexico and Ps.368.5 million at Finsol Brazil, representing a 7.7% and 16.2% sequential increase, respectively. Group loans represented 20.2% of the total loan portfolio, practically unchanged from the 19.6% reported in 2Q11 but increased 2.8 pps. from the 17.4% posted in 3Q10.
Apoyo Economico Familiar total loan portfolio was Ps.915.4 million in 3Q11, a 3.4% sequential increase and a 16.5% 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.46.5 million in 3Q11, representing 0.7% of the total consolidated portfolio.
Table 1: Financial Margin* |
||||||||||
3Q11 |
2Q11 |
3Q10 |
QoQ % |
YoY % |
9M11 |
9M10 |
% |
|||
Interest Income |
1,132.3 |
1,092.7 |
897.1 |
3.6% |
26.2% |
3,174.8 |
2,646.8 |
20.0% |
||
Interest on Loans |
1,129.5 |
1,089.3 |
882.6 |
3.7% |
28.0% |
3,158.7 |
2,598.0 |
21.6% |
||
Interest from Investment in Securities |
2.8 |
3.4 |
14.5 |
-17.6% |
-80.5% |
16.2 |
48.7 |
-66.8% |
||
Interest Expense |
191.1 |
188.7 |
121.9 |
1.3% |
56.7% |
542.3 |
345.5 |
57.0% |
||
Financial Margin |
941.3 |
904.0 |
775.2 |
4.1% |
21.4% |
2,632.5 |
2,301.3 |
14.4% |
||
Provision for Loan Losses |
399.3 |
307.8 |
241.3 |
29.7% |
65.4% |
940.3 |
728.4 |
29.1% |
||
Financial Margin After Provision for Loan Losses |
542.0 |
596.2 |
533.8 |
-9.1% |
1.5% |
1,692.3 |
1,572.9 |
7.6% |
||
* Figures in millions of Mexican Pesos |
||||||||||
Table 2: Loan Portfolio, Number of Clients & Average Balance |
|||||||
3Q11 |
2Q11 |
3Q10 |
QoQ % |
YoY % |
|||
Loan Portfolio (million Ps.) |
7,024.5 |
6,742.9 |
5,603.3 |
4.2% |
25.4% |
||
Number of Clients |
1,559,466 |
1,512,141 |
1,363,913 |
3.1% |
14.3% |
||
Average Balance (Ps.) |
4,504.4 |
4,459.2 |
4,108.3 |
1.0% |
9.6% |
||
Table 3: Number of Clients by Product Type |
||||||||||
3Q11 |
% of Total |
2Q11 |
% of Total |
3Q10 |
% of Total |
QoQ % Change |
YoY % Change |
|||
Formal Sector Loans |
716,071 |
45.9% |
703,180 |
46.5% |
732,578 |
53.7% |
1.8% |
-2.3% |
||
- CrediInmediato |
716,071 |
45.9% |
703,180 |
46.5% |
732,578 |
53.7% |
1.8% |
-2.3% |
||
Informal Sector Loans |
446,517 |
28.6% |
431,717 |
28.6% |
437,386 |
32.1% |
3.4% |
2.1% |
||
- CrediPopular |
356,442 |
22.9% |
340,187 |
22.5% |
332,264 |
24.4% |
4.8% |
7.3% |
||
- CrediMama |
53,747 |
3.4% |
50,644 |
3.3% |
47,092 |
3.5% |
6.1% |
14.1% |
||
- CrediConstruye |
36,328 |
2.3% |
40,886 |
2.7% |
58,030 |
4.3% |
-11.1% |
-37.4% |
||
Finsol Loans |
272,613 |
17.5% |
257,161 |
17.0% |
193,949 |
14.2% |
6.0% |
40.6% |
||
- Finsol Mexico |
218,837 |
14.0% |
210,290 |
13.9% |
159,434 |
11.7% |
4.1% |
37.3% |
||
- Finsol Brasil |
53,776 |
3.4% |
46,871 |
3.1% |
34,515 |
2.5% |
14.7% |
55.8% |
||
Apoyo Economico Familiar Loans |
123,039 |
7.9% |
118,995 |
7.9% |
0 |
0.0% |
3.4% |
n/a |
||
Apoyo Financiero Inc Loans |
1,226 |
0.1% |
1,088 |
0.1% |
0 |
0.0% |
12.7% |
n/a |
||
Total Number of Loans |
1,559,466 |
100.0% |
1,512,141 |
100.0% |
1,363,913 |
100.0% |
3.1% |
14.3% |
||
Table 4: Total Loan Portfolio by Product Type* |
||||||||||
3Q11 |
% of Total |
2Q11 |
% of Total |
3Q10 |
% of Total |
QoQ % Change |
YoY % Change |
|||
Formal Sector Loan Portfolio |
2,989.8 |
42.6% |
2,883.6 |
42.8% |
3,001.6 |
53.6% |
3.7% |
-0.4% |
||
- CrediInmediato |
2,989.8 |
42.6% |
2,883.6 |
42.8% |
3,001.6 |
53.6% |
3.7% |
-0.4% |
||
Informal Sector Loan Portfolio |
1,652.5 |
23.5% |
1,617.9 |
24.0% |
1,628.1 |
29.1% |
2.1% |
1.5% |
||
- CrediPopular |
1,341.9 |
19.1% |
1,302.0 |
19.3% |
1,269.6 |
22.7% |
3.1% |
5.7% |
||
- CrediMama |
165.8 |
2.4% |
158.9 |
2.4% |
137.8 |
2.5% |
4.3% |
20.3% |
||
- CrediConstruye |
144.8 |
2.1% |
156.9 |
2.3% |
220.7 |
3.9% |
-7.7% |
-34.4% |
||
Finsol Loan Portfolio |
1,420.3 |
20.2% |
1,321.2 |
19.6% |
973.6 |
17.4% |
7.5% |
45.9% |
||
- Finsol Mexico |
912.1 |
13.0% |
864.0 |
12.8% |
675.4 |
12.1% |
5.6% |
35.0% |
||
- Finsol Brasil |
508.3 |
7.2% |
457.2 |
6.8% |
298.2 |
5.3% |
11.2% |
70.4% |
||
Apoyo Economico Familiar Loans |
915.4 |
13.0% |
885.0 |
13.1% |
0.0 |
0.0% |
3.4% |
n/a |
||
Apoyo Financiero Inc Loans |
46.5 |
0.7% |
35.2 |
0.5% |
0.0 |
0.0% |
32.1% |
n/a |
||
Total Loan Portfolio |
7,024.5 |
100.0% |
6,742.9 |
100.0% |
5,603.3 |
100.0% |
4.2% |
25.4% |
||
* Figures in millions of Mexican Pesos. |
||||||||||
Table 5: Total Loan Portfolio by Segment* |
||||||||||
3Q11 |
% of Total |
2Q11 |
% of Total |
3Q10 |
% of Total |
QoQ % Change |
YoY % Change |
|||
Formal Sector Loan Portfolio |
3,543.9 |
50.5% |
3,408.7 |
50.6% |
3,001.6 |
53.6% |
4.0% |
18.1% |
||
- Independencia (CrediInmediato) |
2,989.8 |
42.6% |
2,883.6 |
42.8% |
3,001.6 |
53.6% |
3.7% |
-0.4% |
||
- AEF Formal |
507.6 |
7.2% |
489.9 |
7.3% |
0.0 |
0.0% |
3.6% |
0.0% |
||
- AFI |
46.5 |
0.7% |
35.2 |
0.5% |
0.0 |
0.0% |
32.1% |
0.0% |
||
Informal Sector Loan Portfolio |
3,480.6 |
49.5% |
3,334.2 |
49.4% |
2,601.7 |
46.4% |
4.4% |
33.8% |
||
- Independencia |
1,652.5 |
23.5% |
1,617.9 |
24.0% |
1,628.1 |
29.1% |
2.1% |
1.5% |
||
- Finsol Mexico |
912.1 |
13.0% |
864.0 |
12.8% |
675.4 |
12.1% |
5.6% |
35.0% |
||
- Finsol Brasil |
508.3 |
7.2% |
457.2 |
6.8% |
298.2 |
5.3% |
11.2% |
70.4% |
||
- AEF Informal |
407.8 |
5.8% |
395.1 |
5.9% |
0.0 |
0.0% |
3.2% |
0.0% |
||
Total Loan Portfolio |
7,024.5 |
100.0% |
6,742.9 |
100.0% |
5,603.3 |
100.0% |
4.2% |
25.4% |
||
* Figures in millions of Mexican Pesos. |
||||||||||
Interest Expense
Interest expense during 3Q11 increased by Ps.69.1 million, or 56.7%, year-on-year, to Ps.191.1 million principally as a result of the 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.40.0 million or 32.8% year-on-year, reflecting the integration of AEF into the Company's results and the 25.4% year-on-year growth in the loan portfolio. The average interest rate paid(2) increased to 11.26% in 3Q11 from 11.14% in 3Q10, and from 10.82% in 2Q11. The higher average interest rate paid also reflects the refinancing in June 2011 of a Ps.784.0 million medium-term notes with a new Ps.1,500.0 million "Certificado Bursatil" issued at a higher rate due to market conditions. The average TIIE stood at 4.8% in 3Q11 compared with 4.9% in 3Q10.
Provision for Loan Losses
Provisions for loan losses increased year-on-year by 65.4%, or Ps.157.9 million, to Ps.399.3 million in 3Q11. Excluding AEF and AFI provisions for loan losses increased year-on-year by 52.2% or Ps.126.0 million. Write-offs in 3Q11 increased 33.1%, or by Ps.86.8 million, to Ps.349.2 million from Ps.262.4 million in 3Q10. Excluding AEF and AFI write-offs increased by 22.3% to Ps.321.0 million. Total non-performing loans reached Ps.703.5 million, up 20.1% from Ps.585.8 million on 3Q10. AEF reported Ps.12.1 million in non-performing loans, representing an NPL ratio of 1.3%.
Market Related Income
During 3Q11, the Company reported a Ps.29.0 million benefit, principally as a result of foreign exchange operations between Financiera Independencia, Finsol Brazil and Apoyo Financiero Incorporated. As explained in previous reports, since 3Q10 the mark-to-market impact of the cross currency swap to hedge the US dollar bond issuance has been reported in the Stockholders Equity line on the Balance Sheet.
Net Operating Revenue
Net operating revenue increased year-on-year by Ps.57.6 million, or 8.2%, to Ps.760.6 million in 3Q11 due to the reasons stated above as well as a decrease in non-interest income. Non-interest income decreased to Ps.188.4 million in 3Q11 from Ps.199.8 million in 3Q10. The year-on-year decline reflects the 14.3% decrease in the number of clients using the revolving line of credit, which resulted in lower annual fees. The introduction of CrediInmediato Simple, an annual fee-free variation of the CrediInmediato product also impacted non-interest income. In 3Q11, CrediInmediato Simple accounted for 33% of Independencia's total individual loan origination. On a sequential comparison, net operating revenue decreased 5.4% from Ps.803.7 million in 2Q11.
Net Operating Income
Net operating income for 3Q11 decreased year-on-year by Ps.95.8 million, or 88.2%, to Ps.12.8 million. On a sequential comparison, net operating income decreased 82.0% from Ps.71.2 million in 2Q11.
Non-interest expense increased by Ps.153.5 million year-on-year, or 25.8%, in line with the 25.4% growth in total loans achieved during the period. The consolidation of AEF into the Company's results and expenses related to Finsol's expansion plan were the main drivers behind the increase. Excluding AEF and AFI, non-interest expense increased year-on-year by Ps.14.5 million, or 2.4%, to Ps.608.9 million, reflecting efficiencies from cost reduction initiatives implemented in 4Q10. On a sequential basis, non-interest expense increased by Ps.15.3 million, or 2.1%.
During the last twelve months, the Company added a total of 121 branches to its network, 18 of which were added during the quarter and 97 resulted from the acquisition of AEF and AFI. Out of the 18 additional branches, 13 were opened by Finsol Mexico and five by AEF. During the quarter, the Company also closed five Financiera Independencia's service offices bringing the total network to 491 units.
Table 6: Net Operating Income* |
Change |
|||||||||
3Q11 |
2Q11 |
3Q10 |
QoQ % |
YoY % |
9M11 |
9M10 |
% Change |
|||
Financial Margin |
941.3 |
904.0 |
775.2 |
4.1% |
21.4% |
2,632.5 |
2,301.3 |
14.4% |
||
Provision for Loan Losses |
399.3 |
307.8 |
241.3 |
29.7% |
65.4% |
940.3 |
728.4 |
29.1% |
||
Financial Margin After Provision for Loan Losses |
542.0 |
596.2 |
533.8 |
-9.1% |
1.5% |
1,692.3 |
1,572.9 |
7.6% |
||
Non-Interest Income, net |
172.5 |
193.9 |
187.0 |
-11.0% |
-7.8% |
557.3 |
536.6 |
3.9% |
||
- Commissions and Fees Collected |
188.4 |
208.5 |
199.8 |
-9.7% |
-5.7% |
600.3 |
571.1 |
5.1% |
||
- Commissions and Fees Paid |
15.8 |
14.7 |
12.8 |
8.1% |
23.6% |
43.0 |
34.5 |
24.6% |
||
Market Related Income |
29.0 |
0.1 |
-33.1 |
39664.9% |
-187.7% |
14.2 |
91.2 |
-84.5% |
||
Other income (expense) of the operation |
17.1 |
13.6 |
15.2 |
26.1% |
12.3% |
42.7 |
55.1 |
-22.5% |
||
Net Operating Revenue |
760.6 |
803.7 |
703.0 |
-5.4% |
8.2% |
2,306.4 |
2,255.8 |
2.2% |
||
Non-Interest Expense |
747.8 |
732.6 |
594.4 |
2.1% |
25.8% |
2,105.0 |
1,820.5 |
15.6% |
||
- Other Administrative & Operational Expenses |
265.4 |
256.2 |
196.1 |
3.6% |
35.3% |
723.2 |
571.2 |
26.6% |
||
- Salaries & Employee Benefits |
482.5 |
476.4 |
398.3 |
1.3% |
21.1% |
1,381.8 |
1,249.3 |
10.6% |
||
Net Operating Income |
12.8 |
71.2 |
108.6 |
-82.0% |
-88.2% |
201.4 |
435.3 |
-53.7% |
||
Operational Data |
||||||||||
Number of Offices |
491 |
478 |
370 |
2.7% |
32.7% |
491 |
370 |
32.7% |
||
- Financiera Independencia |
202 |
207 |
207 |
-2.4% |
-2.4% |
202 |
207 |
-2.4% |
||
- Finsol |
183 |
170 |
163 |
7.6% |
12.3% |
183 |
163 |
12.3% |
||
- Apoyo Economico Familiar |
104 |
99 |
0 |
5.1% |
n/a |
104 |
0 |
n/a |
||
- Apoyo Financiero Inc |
2 |
2 |
0 |
0.0% |
n/a |
2 |
0 |
n/a |
||
Total Labor Force |
11,354 |
10,734 |
11,153 |
5.8% |
1.8% |
11,354 |
11,153 |
1.8% |
||
- Financiera Independencia |
7,853 |
7,488 |
9,686 |
4.9% |
-18.9% |
7,853 |
9,686 |
-18.9% |
||
- Finsol |
1,917 |
1,732 |
1,467 |
10.7% |
30.7% |
1,917 |
1,467 |
30.7% |
||
- Apoyo Economico Familiar |
1,575 |
1,506 |
0 |
4.6% |
n/a |
1,575 |
0 |
n/a |
||
- Apoyo Financiero Inc |
9 |
8 |
0 |
12.5% |
n/a |
9 |
0 |
n/a |
||
* Financial data in millions of Mexican Pesos. |
||||||||||
Net Income
As a result of the factors discussed above, and after other income and expenses, and income tax, net income for 3Q11 decreased 67.2% on a sequential basis and 83.4% year-on-year to Ps.18.7 million.
Earnings per share (EPS) for the quarter were Ps.0.0261 compared with Ps.0.1577 for the same period last year.
Apoyo Economico Familiar Contribution
During 3Q11 AEF generated financial margin after provisions of Ps.148.8 million, or 27.5% of consolidated results, and net operating revenue of Ps.165.9 million, or 21.8% of consolidated results. Additionally, AEF contributed with Ps.136.1 million of non-interest expense, or 18.2% of consolidated results.
Apoyo Financiero Inc. Contribution
During 3Q11 AFI generated financial margin after provisions of Ps.3.0 million, or 0.5% of consolidated results, and net operating revenue of Ps.10.3 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 25.4% to Ps.7,024.5 million, reflecting a 14.3% increase in the number of clients during the period, and a 9.6% increase in the average outstanding balance. At the end of the quarter, Findep had a total of 1,559,466 clients, of which 272,613 were Finsol clients, 123,039 were AEF clients and 1,226 were AFI clients.
As of September 30, 2011, the total loan portfolio represented 67.1% of Findep's total assets, compared with 65.2% as of September 30, 2010. Cash and Investments represented 3.6% of total assets for 3Q11 compared with 13.7% in 3Q10.
Non-Performing Loan Portfolio
Total non-performing loans reached Ps.703.5 million, up 6.1% on a sequential basis from Ps.662.9 million and 20.1% year-over-year. The NPL ratio declined to 10.0% in 3Q11 from 10.5% in 3Q10, but increased from 9.8% in 2Q11. Excluding Finsol, AEF, and AFI, total non-performing loans reached Ps.626.0 million, up 10.6% year-on-year.
The NPL ratio for the CrediInmediato product in 3Q11 was 13.0%, compared with 13.2% in 2Q11. The NPL ratio for Independencia's individual informal segment was 14.3% in 3Q11, from 13.4% in 2Q11 and 10.7% in 3Q10. The NPL ratio in 3Q11 for the group lending segment (Finsol) was 4.8% in Mexico and 4.0% in Brazil, compared to 2.0% and 2.1% respectively, in 3Q10. 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 focused on renewing loans to its existing and best performing clients and was not able fund loans to new and higher risk clients. As the portfolio matures, non-performing loans are expected to stabilize.
For the quarter, AEF's NPL ratio stood at 1.3% compared to 1.1% in 2Q11.
The coverage ratio for 3Q11 was 72.7%, compared with 69.6% in 2Q11 and 68.0% in 3Q10. The increase in the coverage ratio reflects the increase in default probabilities of the loan portfolio and AEF's high coverage ratio.
Liabilities
As of September 30, 2011 total liabilities were Ps.7,438.5 million, a 32.5% increase from Ps.5,612.4 million reported on September 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 decreased 1.0% from Ps.7,510.3.3 million in June 30, 2011.
During the quarter, the Company reached an agreement with NAFIN to modify the terms and conditions of Finsol Mexico's existing line of credit. As of September 22, 2011 the line of credit increased from Ps.280 million to Ps.500 million. The terms include a floating interest rate based on the TIIE plus 450 basis points. On that same date NAFIN also granted a new Ps.200 million line of credit to Apoyo Economico Familiar that pays an interest rate of TIIE plus 400 basis points. Both lines of credit have an evergreen feature.
At the end of 3Q11, 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.2,886.7 million of bank and other entities loans. The Company's total lines of credit amounted to Ps.4,956.1 million at the end of 3Q11, of which Ps.2,215 million or 44.7% are available. This includes the lines of credit at Finsol and AEF.
Of the total lines of credit, Ps.336 million mature in January 2012, Ps.1,330 million in December 2012, Ps.1,520 million in December 2013, Ps.70 million in July 2014 and the remaining Ps.1,700 million have an evergreen feature. These amounts include the available lines of credit at Finsol and AEF.
On August 30 2011, the Company entered on a step-up interest rate swap from a floating to a fixed rate for a notional amount of Ps.1,500.0 million to hedge the medium-term notes "Certificados Bursatiles" for a three-year period starting on September 7, 2011. The interest rate is 6.95% for the first twelve months and 7.80% until maturity.
Stockholders' Equity
As of September 30, 2011 stockholder's equity was Ps.3,031.2 million, a 1.4% increase from Ps.2,987.9 million in the same year-ago period. This increase principally reflects net income generated during the current period partially offset by the Ps.150.3 million dividend paid for 2010.
As a result of the revaluation of foreign currency denominated debt and the underlying derivatives position to hedge for foreign exchange risk, in 3Q11 the Company posted a Ps.21.4 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: a Ps.110.8 million gain from marking-to-market the Cross Currency Swap, a Ps.145.9 million loss from the revalorization of the bond, Ps.9.2 million in deferred taxes, and a Ps.4.0 million loss from hedge-ineffectiveness. In this same line-item, the Company recorded a Ps.8.5 million gain from the mark-to-market of the interest rate swap of the Certificados Bursatiles outstanding.
PROFITABILITY AND EFFICIENCY RATIOS
ROAE/ROAA
ROAE for 3Q11 was 2.7% compared with 15.1% in 3Q10 and 7.6% in 2Q11. These figures reflect the Ps.850 million capital increase in 1Q10.
ROAA for 3Q11 was 0.8% compared with 5.2% in 3Q10 and 2.2% in 2Q11.
Efficiency Ratio & Operating Efficiency
From 3Q10 to 3Q11 Independencia increased the size of its loan portfolio by 25.4% and the number of clients by 14.3%. During the quarter, the Company added a net of 13 offices and increased its total labor force by 5.8% to 11,354 people.
During 3Q11 the Company's efficiency ratio was 98.3%, compared with 84.5% in 3Q10 and 91.1% in 2Q11. The year-on-year increase is principally the result of the 65.4% 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 3Q11 was 64.5% compared to 62.9% in 3Q10. Operating efficiency was 28.5% in 3Q11, up 1.2 pps year-on-year and down 0.1 pps quarter-on-quarter.
DISTRIBUTION NETWORK
At the end of the quarter, Independencia operated 491 offices in Mexico, Brazil, and the US, 18 of which were added during the quarter. This includes 466 offices in Mexico of which 202 operated under the Financiera Independencia brand name, 160 offices under the Finsol brand name, and 104 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 10.0% of the total loan portfolio. The three federal entities with the highest loan portfolio concentration are Veracruz, Tamaulipas and Estado de Mexico, with a 10.0%, 8.2%, and 7.8% share of the total portfolio, respectively.
3Q11 EARNINGS CONFERENCE CALL
Day: |
Wednesday, October 26, 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: |
16421351 |
|
. |
||
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 October 26 and ending at 11:59 pm ET on November 2,, 2011. The replay is accessible by dialing 800-585-8367 (U.S./Canada) or 404-537-3406 (international) and entering passcode 16421351. |
|
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 and rural areas of both the formal and informal economy. As of September 30, 2011, Independencia had a total outstanding loan balance of Ps.7,024.5 million, operated 491 offices in Mexico, Brazil, and the US and had a total labor force of 11,354 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.
(1) Average lending rate: interest income / average balance of the total loan portfolio.
(2) Average interest rate paid = interest expense / daily average balance of interest bearing liabilities for the period.
# # # TABLES TO FOLLOW # # #
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. |
||||||||||||||
Consolidated Income Statement |
||||||||||||||
For the Three and Nine-Months Periods Ended September 30, 2011 and 2010 |
||||||||||||||
(Millions of Mexican Pesos) |
||||||||||||||
3Q11 vs 3Q10 |
||||||||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
9M11 |
9M10 |
Absolute |
% |
||||
Interest Income |
1,132.3 |
1,092.7 |
949.8 |
948.9 |
897.1 |
235.2 |
26.2% |
3,174.8 |
2,646.8 |
528.1 |
20.0% |
|||
Interest Expense |
191.1 |
188.7 |
162.5 |
159.0 |
121.9 |
69.1 |
56.7% |
542.3 |
345.5 |
196.8 |
57.0% |
|||
Financial Margin |
941.3 |
904.0 |
787.3 |
789.8 |
775.2 |
166.1 |
21.4% |
2,632.5 |
2,301.3 |
331.3 |
14.4% |
|||
Provision for Loan Losses |
399.3 |
307.8 |
233.2 |
243.1 |
241.3 |
157.9 |
65.4% |
940.3 |
728.4 |
211.9 |
29.1% |
|||
Financial Margin After Provision for Loan Losses |
542.0 |
596.2 |
554.0 |
546.7 |
533.8 |
8.2 |
1.5% |
1,692.3 |
1,572.9 |
119.4 |
7.6% |
|||
Commissions and Fees Collected |
188.4 |
208.5 |
203.4 |
204.7 |
199.8 |
(11.5) |
(5.7%) |
600.3 |
571.1 |
29.2 |
5.1% |
|||
Commissions and Fees Paid |
15.8 |
14.7 |
12.5 |
12.3 |
12.8 |
3.0 |
23.6% |
43.0 |
34.5 |
8.5 |
24.6% |
|||
Market Related Income |
29.0 |
0.1 |
(14.9) |
4.2 |
(33.1) |
62.1 |
(187.7%) |
14.2 |
91.2 |
(77.1) |
(84.5%) |
|||
Other income (expense) of the operation |
17.1 |
13.6 |
12.0 |
12.5 |
15.2 |
1.9 |
12.3% |
42.7 |
55.1 |
(12.4) |
(22.5%) |
|||
Net Operating Revenue |
760.6 |
803.7 |
742.1 |
755.8 |
703.0 |
57.6 |
8.2% |
2,306.4 |
2,255.8 |
50.7 |
2.2% |
|||
Non-Interest Expense |
747.8 |
732.6 |
624.7 |
686.0 |
594.4 |
153.5 |
25.8% |
2,105.0 |
1,820.5 |
284.6 |
15.6% |
|||
Net Operating Income |
12.8 |
71.2 |
117.4 |
69.8 |
108.6 |
(95.8) |
(88.2%) |
201.4 |
435.3 |
(233.9) |
(53.7%) |
|||
Other Income (expense) - Net |
35.8 |
19.7 |
4.6 |
23.9 |
10.3 |
25.5 |
248.6% |
60.1 |
40.5 |
19.6 |
48.2% |
|||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
48.6 |
90.9 |
122.0 |
93.7 |
118.9 |
(70.3) |
(59.1%) |
261.5 |
475.8 |
(214.3) |
(45.0%) |
|||
Income Tax and Employees' Statutory Profit Sharing |
||||||||||||||
Current |
6.9 |
65.8 |
83.0 |
19.9 |
21.3 |
(14.4) |
(67.6%) |
155.6 |
81.7 |
74.0 |
90.6% |
|||
Deferred |
21.3 |
(31.7) |
(50.9) |
20.3 |
(15.3) |
36.6 |
(239.1%) |
(61.2) |
(4.1) |
(57.1) |
1393.6% |
|||
Total Income Before Minority Interest |
20.4 |
56.8 |
89.9 |
53.4 |
112.9 |
(92.5) |
(82.0%) |
167.1 |
398.3 |
(231.2) |
(58.0%) |
|||
Minority Interest |
(1.7) |
0.1 |
0.1 |
- |
- |
(1.7) |
n/a |
(1.4) |
- |
(1.4) |
n/a |
|||
Net Income |
18.7 |
57.0 |
90.0 |
53.4 |
112.9 |
(94.2) |
(83.4%) |
165.7 |
398.3 |
(232.6) |
(58.4%) |
|||
Weighted Average Number of Shares |
715.9 |
715.9 |
715.9 |
715.9 |
715.9 |
- |
0.0% |
715.9 |
715.9 |
- |
0.0% |
|||
EPS |
0.0261 |
0.0796 |
0.1258 |
0.0746 |
0.1577 |
(0.1316) |
(83.4%) |
0.2314 |
0.5563 |
(0.3249) |
(58.4%) |
|||
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. |
|||||||||
Consolidated Balance Sheet |
|||||||||
As of September 30, 2011 and 2010 |
|||||||||
(Millions of Mexican Pesos) |
|||||||||
3Q11 vs 3Q10 |
|||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
|||
ASSETS |
|||||||||
Cash |
203.1 |
133.3 |
172.6 |
153.7 |
153.6 |
49.4 |
32.2% |
||
Investments in Securities |
177.1 |
522.5 |
297.3 |
702.0 |
1,026.1 |
(849.0) |
(82.7%) |
||
Cash and Cash Equivalents |
380.2 |
655.9 |
469.9 |
855.7 |
1,179.8 |
(799.6) |
(67.8%) |
||
Performing Loans |
6,321.1 |
6,080.0 |
6,025.8 |
5,202.8 |
5,017.5 |
1,303.5 |
26.0% |
||
Non-Performing Loans |
703.5 |
662.9 |
535.9 |
570.2 |
585.8 |
117.6 |
20.1% |
||
Total Loan Portfolio |
7,024.5 |
6,742.9 |
6,561.7 |
5,773.0 |
5,603.3 |
1,421.2 |
25.4% |
||
Allowances for Loan Losses |
(511.7) |
(461.4) |
(404.8) |
(375.5) |
(398.1) |
(113.5) |
28.5% |
||
Total Loan Portfolio - Net |
6,512.9 |
6,281.5 |
6,156.9 |
5,397.6 |
5,205.2 |
1,307.7 |
25.1% |
||
Other Accounts Receivable - Net |
387.8 |
397.7 |
205.7 |
410.6 |
247.4 |
140.4 |
56.8% |
||
Property, Plant & Equipment - Net |
430.7 |
451.7 |
461.4 |
403.3 |
378.6 |
52.2 |
13.8% |
||
Deferred Income Tax |
800.3 |
851.5 |
833.6 |
708.4 |
683.4 |
116.9 |
17.1% |
||
Derivative Financial Instruments |
134.6 |
- |
- |
- |
- |
134.6 |
n/a |
||
Other Assets |
1,823.1 |
1,853.8 |
1,845.9 |
903.7 |
906.0 |
917.2 |
101.2% |
||
Total Assets |
10,469.6 |
10,492.0 |
9,973.5 |
8,679.2 |
8,600.3 |
1,869.3 |
21.7% |
||
LIABILITIES |
|||||||||
Commercial Paper |
1,506.7 |
1,504.7 |
784.0 |
787.1 |
785.5 |
721.2 |
91.8% |
||
Bank and Other Entities Loans |
5,494.1 |
5,155.6 |
5,683.5 |
4,342.5 |
4,385.1 |
1,109.0 |
25.3% |
||
Derivative Financial Instruments |
- |
396.1 |
315.5 |
232.4 |
166.6 |
(166.6) |
(100.0%) |
||
Other Accounts Payable |
437.7 |
453.9 |
196.3 |
370.7 |
275.2 |
162.5 |
59.0% |
||
Total Liabilities |
7,438.5 |
7,510.3 |
6,979.3 |
5,732.6 |
5,612.4 |
1,826.0 |
32.5% |
||
STOCKHOLDERS' EQUITY |
|||||||||
Capital Stock |
157.2 |
157.2 |
157.2 |
157.2 |
157.2 |
- |
0.0% |
||
Additional Paid-In Capital |
1,579.2 |
1,579.2 |
1,577.4 |
1,550.8 |
1,549.2 |
30.0 |
1.9% |
||
Capital Reserves |
14.3 |
14.3 |
14.3 |
14.3 |
14.3 |
0.0 |
0.1% |
||
Retained Earnings |
1,125.4 |
1,163.6 |
1,205.2 |
837.3 |
941.9 |
183.4 |
19.5% |
||
Net Income for the Year |
165.7 |
147.0 |
90.0 |
451.7 |
398.3 |
(232.6) |
(58.4%) |
||
Financial Instruments - Derivatives |
(21.4) |
(88.7) |
(59.2) |
(64.7) |
(73.0) |
51.6 |
(70.7%) |
||
Minority Interest |
10.9 |
9.2 |
9.3 |
- |
- |
10.9 |
n/a |
||
Total Stockholders' Equity |
3,031.2 |
2,981.7 |
2,994.2 |
2,946.6 |
2,987.9 |
43.3 |
1.4% |
||
Total Liabilities and Stockholders' Equity |
10,469.6 |
10,492.0 |
9,973.5 |
8,679.2 |
8,600.3 |
1,869.3 |
21.7% |
||
Finsol Mexico |
|||||||||||
Income Statement |
|||||||||||
For the Nine Months Periods Ended September 30, 2011 and 2010 |
|||||||||||
(Millions of Mexican Pesos) |
|||||||||||
3Q11 vs 3Q10 |
|||||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
9M11 |
||||
Interest Income |
171.6 |
173.8 |
178.4 |
163.1 |
134.3 |
37.3 |
27.8% |
523.8 |
|||
Interest Expense |
16.3 |
17.3 |
29.7 |
31.9 |
26.0 |
(9.7) |
(37.5%) |
63.2 |
|||
Financial Margin |
155.4 |
156.5 |
148.8 |
131.3 |
108.3 |
47.1 |
43.5% |
460.6 |
|||
Provision for Loan Losses |
33.1 |
34.5 |
40.1 |
34.3 |
20.1 |
13.0 |
64.9% |
107.8 |
|||
Financial Margin After Provision for Loan Losses |
122.3 |
122.0 |
108.6 |
96.9 |
88.2 |
34.0 |
38.6% |
352.9 |
|||
Commissions and Fees Collected |
0.0 |
0.0 |
(0.0) |
0.0 |
0.0 |
(0.0) |
(95.4%) |
0.0 |
|||
Commissions and Fees Paid |
4.0 |
4.2 |
3.6 |
4.1 |
4.0 |
(0.0) |
(0.7%) |
11.8 |
|||
Market Related Income |
0.0 |
(0.0) |
0.5 |
(0.4) |
0.2 |
(0.2) |
(90.2%) |
0.5 |
|||
Other income (expense) of the operation |
0.5 |
- |
- |
- |
- |
0.5 |
n/a |
0.5 |
|||
Net Operating Revenue |
118.8 |
117.8 |
105.6 |
92.4 |
84.4 |
34.4 |
40.8% |
342.1 |
|||
Non-Interest Expense |
104.8 |
98.5 |
95.7 |
90.5 |
87.4 |
17.5 |
20.0% |
299.1 |
|||
Net Operating Income |
13.9 |
19.2 |
9.9 |
1.9 |
(3.0) |
16.9 |
(567.8%) |
43.0 |
|||
Other Income (expense) - Net |
16.5 |
2.0 |
2.3 |
4.6 |
7.0 |
9.5 |
137.0% |
20.8 |
|||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
30.4 |
21.3 |
12.2 |
6.6 |
4.0 |
26.5 |
663.8% |
63.9 |
|||
Income Tax and Employees' Statutory Profit Sharing |
|||||||||||
Current |
4.5 |
- |
- |
10.8 |
- |
4.5 |
n/a |
4.5 |
|||
Deferred |
8.0 |
8.0 |
0.9 |
(5.3) |
(14.3) |
22.4 |
(156.1%) |
17.0 |
|||
Total Income Before Minority Interest |
17.9 |
13.2 |
11.3 |
1.0 |
18.3 |
(0.5) |
(2.5%) |
42.4 |
|||
Net Income |
17.9 |
13.2 |
11.3 |
1.0 |
18.3 |
(0.5) |
(2.5%) |
42.4 |
|||
Finsol Mexico |
||||||||
Balance Sheet |
||||||||
As of September 30, 2011 and 2010 |
||||||||
(Millions of Mexican Pesos) |
||||||||
3Q11 vs 3Q10 |
||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
||
ASSETS |
||||||||
Cash and Cash Equivalents |
131.0 |
345.4 |
113.3 |
193.1 |
167.4 |
(36.4) |
(21.7%) |
|
Performing Loans |
868.5 |
822.7 |
839.6 |
837.0 |
661.9 |
206.5 |
31.2% |
|
Non-Performing Loans |
43.6 |
41.3 |
37.3 |
23.0 |
13.4 |
30.2 |
224.3% |
|
Total Loan Portfolio |
912.1 |
864.0 |
876.9 |
860.0 |
675.4 |
236.7 |
35.0% |
|
Allowances for Loan Losses |
(60.4) |
(67.5) |
(69.3) |
(52.3) |
(30.7) |
(29.7) |
96.9% |
|
Total Loan Portfolio - Net |
851.6 |
796.5 |
807.6 |
807.8 |
644.7 |
206.9 |
32.1% |
|
Assets, Accounts Receivable & Other Assets |
254.3 |
285.0 |
642.2 |
884.6 |
781.7 |
(527.4) |
(67.5%) |
|
Total Assets |
1,237.0 |
1,426.9 |
1,563.1 |
1,885.5 |
1,593.8 |
(356.8) |
(22.4%) |
|
LIABILITIES |
||||||||
Bank and Other Entities Loans |
722.1 |
851.1 |
732.4 |
370.2 |
499.4 |
222.7 |
44.6% |
|
Other Accounts Payable |
196.8 |
275.6 |
543.0 |
1,238.9 |
819.0 |
(622.2) |
(76.0%) |
|
Total Liabilities |
918.9 |
1,126.7 |
1,275.4 |
1,609.1 |
1,318.4 |
(399.5) |
(30.3%) |
|
Total Stockholders' Equity |
318.0 |
300.2 |
287.7 |
276.4 |
275.4 |
42.6 |
15.5% |
|
Total Liabilities and Stockholders' Equity |
1,237.0 |
1,426.9 |
1,563.1 |
1,885.5 |
1,593.8 |
(356.8) |
(22.4%) |
|
Finsol Brasil |
|||||||||||
Income Statement |
|||||||||||
For the Nine Months Periods Ended September 30, 2011 and 2010 |
|||||||||||
(Millions of Mexican Pesos) |
|||||||||||
3Q11 vs 3Q10 |
|||||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
9M11 |
||||
Interest Income |
71.6 |
53.2 |
55.1 |
51.5 |
41.4 |
30.2 |
73.0% |
179.9 |
|||
Interest Expense |
24.3 |
18.4 |
17.9 |
10.7 |
10.4 |
13.8 |
132.9% |
60.5 |
|||
Financial Margin |
47.3 |
34.9 |
37.2 |
40.8 |
31.0 |
16.4 |
52.8% |
119.4 |
|||
Provision for Loan Losses |
9.3 |
6.3 |
3.9 |
1.3 |
0.1 |
9.2 |
9967.8% |
19.4 |
|||
Financial Margin After Provision for Loan Losses |
38.0 |
28.6 |
33.3 |
39.4 |
30.9 |
7.2 |
23.3% |
100.0 |
|||
Commissions and Fees Paid |
1.0 |
0.8 |
0.8 |
0.8 |
0.7 |
0.3 |
37.0% |
2.6 |
|||
Market Related Income |
(35.8) |
1.2 |
(10.8) |
0.9 |
6.9 |
(42.8) |
(617.2%) |
(45.5) |
|||
Net Operating Revenue |
1.2 |
29.0 |
21.7 |
39.5 |
37.1 |
(35.8) |
(96.7%) |
51.9 |
|||
Non-Interest Expense |
45.0 |
40.7 |
37.1 |
33.1 |
31.8 |
13.2 |
41.6% |
122.8 |
|||
Net Operating Income |
(43.8) |
(11.7) |
(15.4) |
6.3 |
5.3 |
(49.1) |
(931.3%) |
(70.9) |
|||
Other Income (expense) - Net |
0.1 |
0.1 |
0.3 |
0.4 |
0.9 |
(0.7) |
(82.6%) |
0.5 |
|||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
(43.6) |
(11.7) |
(15.1) |
6.7 |
6.1 |
(49.8) |
(812.3%) |
(70.4) |
|||
Net Income |
(43.6) |
(11.7) |
(15.1) |
6.7 |
6.1 |
(49.8) |
(812.3%) |
(70.4) |
|||
Finsol Brasil |
||||||||
Balance Sheet |
||||||||
As of September 30, 2011 and 2010 |
||||||||
(Millions of Mexican Pesos) |
||||||||
3Q11 vs 3Q10 |
||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
||
ASSETS |
||||||||
Cash and Cash Equivalents |
30.5 |
45.8 |
113.7 |
32.0 |
30.3 |
0.2 |
0.8% |
|
Performing Loans |
488.0 |
444.0 |
395.4 |
394.1 |
291.9 |
196.1 |
67.2% |
|
Non-Performing Loans |
20.3 |
13.2 |
7.7 |
5.6 |
6.3 |
14.0 |
222.1% |
|
Total Loan Portfolio |
508.3 |
457.2 |
403.1 |
399.7 |
298.2 |
210.0 |
70.4% |
|
Allowances for Loan Losses |
(20.3) |
(13.2) |
(7.7) |
(5.6) |
(6.3) |
(14.0) |
222.1% |
|
Total Loan Portfolio - Net |
488.0 |
444.0 |
395.4 |
394.1 |
291.9 |
196.1 |
67.2% |
|
Assets, Accounts Receivable & Other Assets |
36.2 |
17.1 |
16.3 |
11.2 |
11.3 |
24.9 |
220.2% |
|
Total Assets |
554.8 |
506.9 |
525.4 |
437.2 |
333.5 |
221.2 |
66.3% |
|
LIABILITIES |
||||||||
Bank and Other Entities Loans |
375.0 |
363.0 |
339.3 |
- |
- |
375.0 |
n/a |
|
Other Accounts Payable |
390.9 |
311.4 |
341.9 |
575.1 |
478.1 |
(87.2) |
(18.2%) |
|
Total Liabilities |
765.9 |
674.4 |
681.2 |
575.1 |
478.1 |
287.8 |
60.2% |
|
Total Stockholders' Equity |
(211.2) |
(167.5) |
(155.9) |
(137.9) |
(144.6) |
(66.6) |
46.0% |
|
Total Liabilities and Stockholders' Equity |
554.8 |
506.9 |
525.4 |
437.2 |
333.5 |
221.2 |
66.3% |
|
Finsol Brasil |
||||||||
Balance Sheet |
||||||||
As of September 30, 2011 and 2010 |
||||||||
(Millions of Mexican Pesos) |
||||||||
3Q11 vs 3Q10 |
||||||||
3Q11 |
2Q11 |
1Q11 |
4Q10 |
3Q10 |
Absolute |
% |
||
ASSETS |
||||||||
Cash and Cash Equivalents |
30.5 |
45.8 |
113.7 |
32.0 |
30.3 |
0.2 |
0.8% |
|
Performing Loans |
488.0 |
444.0 |
395.4 |
394.1 |
291.9 |
196.1 |
67.2% |
|
Non-Performing Loans |
20.3 |
13.2 |
7.7 |
5.6 |
6.3 |
14.0 |
222.1% |
|
Total Loan Portfolio |
508.3 |
457.2 |
403.1 |
399.7 |
298.2 |
210.0 |
70.4% |
|
Allowances for Loan Losses |
(20.3) |
(13.2) |
(7.7) |
(5.6) |
(6.3) |
(14.0) |
222.1% |
|
Total Loan Portfolio - Net |
488.0 |
444.0 |
395.4 |
394.1 |
291.9 |
196.1 |
67.2% |
|
Assets, Accounts Receivable & Other Assets |
36.2 |
17.1 |
16.3 |
11.2 |
11.3 |
24.9 |
220.2% |
|
Total Assets |
554.8 |
506.9 |
525.4 |
437.2 |
333.5 |
221.2 |
66.3% |
|
LIABILITIES |
||||||||
Bank and Other Entities Loans |
375.0 |
363.0 |
339.3 |
- |
- |
375.0 |
n/a |
|
Other Accounts Payable |
390.9 |
311.4 |
341.9 |
575.1 |
478.1 |
(87.2) |
(18.2%) |
|
Total Liabilities |
765.9 |
674.4 |
681.2 |
575.1 |
478.1 |
287.8 |
60.2% |
|
Total Stockholders' Equity |
(211.2) |
(167.5) |
(155.9) |
(137.9) |
(144.6) |
(66.6) |
46.0% |
|
Total Liabilities and Stockholders' Equity |
554.8 |
506.9 |
525.4 |
437.2 |
333.5 |
221.2 |
66.3% |
|
Apoyo Economico Familiar |
|||||||||
Income Statement |
|||||||||
For the Nine Months Periods Ended September 30, 2011 |
|||||||||
(Millions of Mexican Pesos) |
|||||||||
3Q11 vs 2Q11 |
|||||||||
3Q11 |
2Q11 |
From 3/15/11 to 3/31/11 |
From 1/1/11 to 3/14/11 |
Absolute |
% |
9M11 |
|||
Interest Income |
201.5 |
194.8 |
35.1 |
149.2 |
6.7 |
3.4% |
580.6 |
||
Interest Expense |
21.2 |
16.3 |
3.1 |
18.6 |
5.0 |
30.7% |
59.1 |
||
Financial Margin |
180.2 |
178.5 |
32.0 |
130.7 |
1.7 |
1.0% |
521.4 |
||
Provision for Loan Losses |
31.4 |
22.9 |
3.5 |
18.0 |
8.6 |
37.4% |
75.8 |
||
Financial Margin After Provision for Loan Losses |
148.8 |
155.6 |
28.6 |
112.6 |
(6.8) |
(4.4%) |
445.7 |
||
Commissions and Fees Collected |
15.6 |
14.3 |
4.3 |
16.3 |
1.3 |
9.0% |
50.4 |
||
Commissions and Fees Paid |
0.6 |
0.5 |
0.1 |
0.3 |
0.2 |
33.0% |
1.6 |
||
Market Related Income |
0.0 |
(0.1) |
(0.0) |
(0.1) |
0.1 |
(104.8%) |
(0.2) |
||
Other income (expense) of the operation |
2.2 |
2.0 |
0.5 |
1.3 |
0.1 |
6.8% |
6.1 |
||
Net Operating Revenue |
165.9 |
171.4 |
33.2 |
129.9 |
(5.5) |
(3.2%) |
500.3 |
||
Non-Interest Expense |
136.1 |
138.9 |
22.6 |
113.8 |
(2.8) |
(2.0%) |
411.5 |
||
Net Operating Income |
29.8 |
32.5 |
10.5 |
16.0 |
(2.7) |
(8.2%) |
88.8 |
||
Other Income (expense) - Net |
11.1 |
8.6 |
0.0 |
0.0 |
2.6 |
30.0% |
19.7 |
||
Total Income Before Income Tax and Employees' Statutory Profit Sharing |
41.0 |
41.1 |
10.5 |
16.0 |
(0.1) |
(0.2%) |
108.6 |
||
Income Tax and Employees' Statutory Profit Sharing |
|||||||||
Current |
15.7 |
14.9 |
5.3 |
4.5 |
0.8 |
5.4% |
40.5 |
||
Deferred |
(3.7) |
(3.0) |
(2.4) |
0.2 |
(0.7) |
24.6% |
(8.8) |
||
Total Income Before Minority Interest |
28.9 |
29.1 |
7.6 |
11.3 |
(0.2) |
(0.6%) |
76.9 |
||
Net Income |
28.9 |
29.1 |
7.6 |
11.3 |
(0.2) |
(0.6%) |
76.9 |
||
Apoyo Economico Familiar |
||||||||
Balance Sheet |
||||||||
As of September 30, 2011 |
||||||||
(Millions of Mexican Pesos) |
||||||||
3Q11 vs 2Q11 |
||||||||
3Q11 |
2Q11 |
1Q11 |
as of Mar.14, 2011 |
Absolute |
% |
|||
ASSETS |
||||||||
Cash and Cash Equivalents |
54.6 |
34.8 |
56.6 |
72.9 |
19.8 |
57.0% |
||
Performing Loans |
903.3 |
875.1 |
833.6 |
822.5 |
28.2 |
3.2% |
||
Non-Performing Loans |
12.1 |
9.9 |
8.7 |
8.5 |
2.2 |
22.4% |
||
Total Loan Portfolio |
915.4 |
885.0 |
842.3 |
831.0 |
30.4 |
3.4% |
||
Allowances for Loan Losses |
(38.1) |
(34.6) |
(34.6) |
(34.6) |
(3.5) |
10.1% |
||
Total Loan Portfolio - Net |
877.3 |
850.4 |
807.7 |
796.4 |
26.9 |
3.2% |
||
Assets, Accounts Receivable & Other Assets |
163.4 |
176.4 |
187.3 |
189.0 |
(13.0) |
(7.4%) |
||
Total Assets |
1,095.3 |
1,061.6 |
1,051.6 |
1,058.4 |
33.7 |
3.2% |
||
LIABILITIES |
||||||||
Bank and Other Entities Loans |
203.2 |
65.4 |
81.7 |
87.2 |
137.8 |
210.6% |
||
Other Accounts Payable |
610.6 |
743.6 |
747.2 |
755.9 |
(133.0) |
(17.9%) |
||
Total Liabilities |
813.8 |
809.0 |
828.8 |
843.2 |
4.8 |
0.6% |
||
Total Stockholders' Equity |
281.5 |
252.6 |
222.8 |
215.2 |
28.9 |
11.5% |
||
Total Liabilities and Stockholders' Equity |
1,095.3 |
1,061.6 |
1,051.6 |
1,058.4 |
33.7 |
3.2% |
||
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. |
||||||||||
Key Ratios & Operating Data |
||||||||||
For the Three and Nine-Months Periods Ended September 30, 2011 and 2010 |
||||||||||
(Millions of Mexican Pesos) |
||||||||||
3Q11 |
2Q11 |
3Q10 |
QoQ % |
YoY % |
9M11 |
9M10 |
% |
|||
Key Ratios |
||||||||||
Profitability & Efficiency |
||||||||||
NIM after Provisions Excl. Fees (1) |
29.3% |
33.1% |
31.2% |
-3.8 pp |
-1.9 pp |
32.2% |
34.7% |
-2.5 pp |
||
NIM after Provisions Incl. Fees (2) |
41.1% |
44.6% |
41.1% |
-3.5 pp |
0 pp |
43.8% |
49.7% |
-5.9 pp |
||
Provisions / Financial Margin |
42.4% |
34.0% |
31.1% |
8.4 pp |
11.3 pp |
35.7% |
31.7% |
4.1 pp |
||
ROAA (3) |
0.8% |
2.2% |
5.2% |
-1.4 pp |
-4.4 pp |
2.3% |
7.3% |
-5 pp |
||
ROAE (4) |
2.7% |
7.6% |
15.1% |
-4.9 pp |
-12.4 pp |
7.5% |
21.9% |
-14.4 pp |
||
Efficiency Ratio Incl. Provisions (5) |
98.3% |
91.1% |
84.5% |
7.2 pp |
13.8 pp |
91.3% |
80.7% |
10.6 pp |
||
Efficiency Ratio Excl. Provisions (6) |
64.5% |
65.9% |
62.9% |
-1.4 pp |
1.5 pp |
64.8% |
61.0% |
3.8 pp |
||
Operating Efficiency (7) |
28.5% |
28.6% |
27.3% |
-0.1 pp |
1.2 pp |
29.3% |
33.4% |
-4 pp |
||
Fee Income (8) |
22.7% |
24.1% |
26.6% |
-1.4 pp |
-3.9 pp |
24.2% |
23.8% |
0.4 pp |
||
Capitalization |
||||||||||
Equity to Total Assets |
29.0% |
28.4% |
34.7% |
0.5 pp |
-5.8 pp |
29.0% |
34.7% |
-5.8 pp |
||
Credit Quality Ratios |
||||||||||
NPL Ratio (9) |
10.0% |
9.8% |
10.5% |
0.2 pp |
-0.4 pp |
10.0% |
10.5% |
-0.4 pp |
||
Coverage Ratio (10) |
72.7% |
69.6% |
68.0% |
3.1 pp |
4.8 pp |
72.7% |
68.0% |
4.8 pp |
||
Operating Data |
||||||||||
Number of Clients |
1,559,466 |
1,512,141 |
1,363,913 |
3.1% |
14.3% |
1,559,466 |
1,363,913 |
14.3% |
||
- Formal Sector |
716,071 |
703,180 |
732,578 |
1.8% |
-2.3% |
716,071 |
732,578 |
-2.3% |
||
- Informal Sector |
446,517 |
431,717 |
437,386 |
3.4% |
2.1% |
446,517 |
437,386 |
2.1% |
||
- Finsol México |
218,837 |
210,290 |
159,434 |
4.1% |
37.3% |
218,837 |
159,434 |
37.3% |
||
- Finsol Brasil |
53,776 |
46,871 |
34,515 |
14.7% |
55.8% |
53,776 |
34,515 |
55.8% |
||
- Apoyo Economico Familiar |
123,039 |
118,995 |
0 |
3.4% |
n/a |
123,039 |
0 |
n/a |
||
- Apoyo Financiero Inc |
1,226 |
1,088 |
0 |
12.7% |
n/a |
1,226 |
0 |
n/a |
||
Number of Offices |
491 |
478 |
370 |
2.7% |
32.7% |
491 |
370 |
32.7% |
||
Total Labor Force |
11,354 |
10,734 |
11,153 |
5.8% |
1.8% |
11,354 |
11,153 |
1.8% |
||
(1) Net Interest Margin after Provisions (excluding Fees): Net Interest Margin after Provision for Loan Losses / Average Interest-Earning Assets |
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(2) Net Interest Margin after Provisions (including Fees): Net Interest Margin after Provision for Loan Losses + Fees Collected - Fees Paid / Average Interest-Earning Assets |
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(3) ROAA: Net Income / Average Total Assets |
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(4) ROAE: Net Income / Average Total Equity |
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(5) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues |
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(6) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues + Provision for Loan Losses |
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(7) Operating Efficiency: Non-interest Expense / Average Assets |
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(8) Commissions and Fees (Net) / Net Operating Revenue |
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(9) NPL Ratio: Non-Performing Loans / Total Loan Portfolio |
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(10) Coverage Ratio: Allowances for Loan Losses / Non-Performing Loans |
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SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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