MEXICO CITY, April 24 /PRNewswire/ -- Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP), (Independencia) a Mexican microfinance lender of personal loans to lower income segment individuals, today announced results for the three-month period ended March 31, 2008. Net income for 1Q08 increased 34.5% year-on-year to Ps.163.1 million, and on a sequential basis rose 20.0%, from Ps.136.0 million in 4Q07.
Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, "We started the year with another strong quarter. Net operating income for the quarter rose 27.9% YoY to Ps.220.7 million, with net income up 34.5% to Ps.163.1 million."
"We continued to deliver on our growth strategy, and increased our loan portfolio by 47.3% YoY to Ps.3.6 billion. We also added around 61,000 new clients during the quarter reaching more than 894,000 at the end of March 2008."
"Following our strategy to expand our distribution platform, this quarter we opened 8 new offices and added 316 new people to our workforce," he noted.
"This strong growth was achieved while continuing to improve our operations. The efficiency ratio for the quarter improved to 62.4% from 63.2% in 1Q07. Operating efficiency also improved to 38.0% from 45.5% in the year- ago quarter."
Mr. Gonzalez, continued, "To support our growth strategy, this April we opened our new operations center in Aguascalientes. This new center, expected to be fully operational towards the end of May, will double capacity to process transactions, including loan applications review, information verification, collections and call center operations. "
"I also wish to highlight the improvement in our NPL ratio this quarter to 6.5% from 7.0% in 4Q07. This reflects our flexibility to fine tune operations as we continue to grow. By-year end we continue to expect the NPL ratio to increase to around 8% as we pursue our strategy to grow in the informal market," closed Mr. Gonzalez.
Financial & Operational Highlights
1Q08 1Q07 %
Income Statement Data
Net Interest Income after Provisions* 421.0 331.0 27.2%
Net Operating Income* 220.7 172.5 27.9%
Net Income* 163.1 121.3 34.5%
Total Shares Outstanding (million)** 665.1 635.0 4.7%
EPS 0.2453 0.1910 28.5%
Profitability & Efficiency
NIM after Provisions Excl. Fees 45.9% 54.1% -8.3 pp
NIM after Provisions Incl. Fees 64.0% 76.6% -12.6 pp
ROA 16.9% 18.6% -1.7 pp
ROE 30.2% 48.1% -17.9 pp
Efficiency Ratio 62.4% 63.2% -0.7 pp
Operating Efficiency 38.0% 45.5% -7.5 pp
Capitalization
Equity to Total Assets 53.7% 37.0% 16.7 pp
Credit Quality Ratios
NPL Ratio 6.5% 4.7% 1.8 pp
Coverage Ratio 125.0% 125.0% 0.0 pp
Operational Data
Number of Clients 894,595 645,001 38.7%
Number of Offices 160 121 32.2%
Total Loan Portfolio* 3,588.3 2,436.1 47.3%
Average Balance (Ps.) 4,011.0 3,776.9 6.2%
* Figures in millions of Mexican Pesos.
** Includes a 1,000:1 split effective October, 18 2007 and excludes
repurchased shares.
Unless otherwise stated, all financial figures discussed in this
announcement are unaudited, prepared in accordance with Mexican
Financial Reporting Standards (NIFs) and represent comparisons between
the three-month periods ended March 31, 2008, and the equivalent
three-month periods ended March 31, 2007 and December 31, 2007.
Results for 1Q07 and 4Q07 are expressed in constant Mexican pesos as
of December 31, 2007, while 1Q08 results are in nominal pesos. Tables
state figures in millions of pesos, unless otherwise noted.
1Q08 CONSOLIDATED RESULTS
Financial Margin after Provision for Loan Losses
Financial margin after provision for loan losses rose by 27.2% to Ps.421.0 million for 1Q08 compared to Ps.331.0 million for 1Q07. This increase principally reflected the following changes:
Interest Income
Interest income rose 43.3% to Ps.610.5 million for 1Q08 compared to Ps.425.9 million for 1Q07, mainly as a result of the Ps.183.6 million, or 43.2%, increase in interest on loans. The number of clients rose 38.7% during the period while the average outstanding loan rose 6.2%. The rise in the average outstanding loan reflected the continued acceptance of the revolving line of credit as well as an increase of the average balance per client in the informal sector, which resulted in a 47.3% growth in the average total loan portfolio for the period. The average lending rate(1) of the total loan portfolio decreased from 72.8% in 1Q07 to 70.4% in 1Q08. This lower rate resulted from the strategy of changing the interest accrual methodology to a revolving line of credit with interest charge on the outstanding loan amount, from a direct interest accrual methodology. The revolving line of credit was introduced with the expectation of increasing the life of Independencia's loans and improving the loyalty of its client base, an expectation that has been confirmed. The decline in the lending rate also reflects a higher level of discounts offered to encourage immediate payment of past due installments.
CrediConstruye loans, a product intended to finance home improvements for the informal sector of the economy, reached 63,902 clients in 1Q08, up from 39,471 or 61.9% in 4Q07 and up from 7,757 or 723.8% in 1Q07. The continued sequential growth of the CrediConstruye loan portfolio reflects the positive impact of the agreement reached in September 2007 with the Federal Government through the Sociedad Hipotecaria Federal by which Independencia began offering 40% subsidized CrediConstruye construction loans to its clients.
In total, the informal sector loan portfolio rose 141.7% year-on-year. As of 1Q08 these loans accounted for 28.4% of total loans up from 17.3% in 1Q07 and 25.9% in 4Q07.
The CredInmediato loan product, which is a revolving line of credit that targets the formal sector of the economy, accounted for 71.6% of total loans down from 82.7% in 1Q07 and 74.1% in 4Q07. The number of CredInmediato clients in 1Q08 grew by 22.8% year-on-year, while the total loan portfolio of this product rose by 27.5%, to Ps. 2,569.6 million, reflecting a higher utilization of the revolving line of credit.
(1) Average lending rate: interest income / average balance of the total
loan portfolio
Table 1: Financial Margin*
1Q08 4Q07 1Q07 QoQ % YoY %
Interest Income 610.5 596.8 425.9 2.3% 43.3%
Interest on Loans 608.9 595.0 425.3 2.3% 43.2%
Interest from Investment in
Securities 1.6 1.8 0.6 -13.7% 157.1%
Interest Expense 38.0 43.3 40.0 -12.2% -5.1%
Monetary Loss - net 0.0 -20.9 -8.8 -100.0% -100.0%
Financial Margin 572.5 532.6 377.0 7.5% 51.8%
* Figures in millions of Mexican Pesos
Table 2: Loan Portfolio, Number of Clients & Average Loan
1Q08 4Q07 1Q07 QoQ % YoY %
Loan Portfolio (million Ps.) 3,588.3 3,350.9 2,436.1 7.1% 47.3%
Number of Clients 894,595 833,902 645,001 7.3% 38.7%
Average Balance (Ps.) 4,011.0 4,018.3 3,776.9 -0.2% 6.2%
(1) Average lending rate: interest income / average balance of the total
loan portfolio
Table 3: Number of Clients by Product Type
% of % of
1Q08 Total 4Q07 Total
Formal Sector Loans 583,727 65.3% 557,907 66.9%
- CredInmediato 583,727 65.3% 557,907 66.9%
Informal Sector Loans 310,868 34.7% 275,995 33.1%
- CrediPopular 184,987 20.7% 174,440 20.9%
- CrediMama 61,979 6.9% 62,084 7.4%
- CrediConstruye 63,902 7.1% 39,471 4.7%
Total Number of Loans 894,595 100.0% 833,902 100.0%
% of QoQ % YoY %
1Q07 Total Change Change
Formal Sector Loans 475,164 73.7% 4.6% 22.8%
- CredInmediato 475,164 73.7% 4.6% 22.8%
Informal Sector Loans 169,837 26.3% 12.6% 83.0%
- CrediPopular 108,608 16.8% 6.0% 70.3%
- CrediMama 53,472 8.3% -0.2% 15.9%
- CrediConstruye 7,757 1.2% 61.9% 723.8%
Total Number of Loans 645,001 100.0% 7.3% 38.7%
Table 4: Total Loan Portfolio by Product Type*
% of % of
1Q08 Total 4Q07 Total
Formal Sector Loan Portfolio 2,569.6 71.6% 2,481.4 74.1%
- CredInmediato 2,569.6 71.6% 2,481.4 74.1%
Informal Sector Loan Portfolio 1,018.7 28.4% 869.5 25.9%
- CrediPopular 555.2 15.5% 524.3 15.6%
- CrediMama 136.4 3.8% 133.2 4.0%
- CrediConstruye 327.1 9.1% 212.0 6.3%
Total Loan Portfolio 3,588.3 100.0% 3,350.9 100.0%
% of QoQ % YoY %
1Q07 Total Change Change
Formal Sector Loan Portfolio 2,014.7 82.7% 3.6% 27.5%
- CredInmediato 2,014.7 82.7% 3.6% 27.5%
Informal Sector Loan Portfolio 421.4 17.3% 17.2% 141.7%
- CrediPopular 286.5 11.8% 5.9% 93.8%
- CrediMama 86.6 3.6% 2.4% 57.5%
- CrediConstruye 48.3 2.0% 54.3% 576.7%
Total Loan Portfolio 2,436.1 100.0% 7.1% 47.3%
* Figures in millions of Mexican Pesos
Interest Expense
Interest expense during 1Q08 declined by Ps. 2.0 million, or 5.1%, to Ps.38.0 million from Ps.40.0 million on 1Q07. This was the result of a YoY decline in the average interest rate paid while the average balance of liabilities for each quarter remained relatively unchanged.
In November 2007, Independencia applied Ps.849.5 million from funds raised during its IPO to reduce the outstanding balance of its revolving line of credit with HSBC, bringing its interest bearing liabilities down to Ps.1,336.0 million at December 31, 2007. Interest bearing liabilities rose 22.9% QoQ to Ps.1,642.4 million at March 31, 2008, reflecting the continued growth of the Company's loan portfolio.
The average interest rate paid(2) on interest bearing liabilities declined to 10.74% in 1Q08 from 11.01% in 1Q07 and 10.87% in 4Q07. Independencia cannot accept deposits and therefore has no interest expense associated therewith.
(2) average interest rate paid = interest expense / daily average balance
of interest bearing liabilities for the period. Some of this
information may vary when compared with previously-released
information were we used periodical average balances.
Provision for Loan Losses
During 1Q08 Independencia recorded provisions for loan losses of Ps.151.5 million compared with Ps.46.0 million in 1Q07, representing an increase of Ps.105.4 million. Provision for loan losses for 1Q07 included a one-time gain of Ps.13.4 million reflecting the change in criteria as a result of the Company's conversion into an unregulated Sofom from a Sofol. As mentioned in the 4Q07 earnings announcement, following lending practices within the commercial sector non-performing loans are now recognized at 90 days or more past due, instead of 60 days or more used in the regulated financial sector.
Excluding the impact of this one-time accounting change, the provision for loan losses would have increased year-on-year by 155.1% from Ps.59.4 million in 1Q07. This increase in provision for loan losses was the result of the following:
-- A 47.3% growth in the total loan portfolio to Ps.3,588.3 million;
-- A 103.8% increase in non-performing loans, from Ps.114.4 million in
1Q07 to Ps.233.2 million in 1Q08; and
-- An increase in the NPL ratio from 4.7% in 1Q07 to 6.5% in 1Q08.
On a sequential comparison, the provision for loan losses declined 19.7% from 188.7 in 4Q07, while the total loan portfolio grew 7.1%. The NPL ratio in turn improved to 6.5% this quarter from 7.0% in 4Q07 reflecting the company's sophisticated technology, collection processes and flexibility to consistently fine-tune operations. However, management continues to expect an increase in the NPL ratio following its strategy to pursue growth in the informal market.
Although the informal sector loan portfolio presents a higher risk than that of the formal sector, profitability in this segment is much higher. While the growth rate of this loan portfolio is high, the Company expects non- performing loans in this segment to increase as the portfolio matures. However, Independencia has adopted a sophisticated collection process that is designed to control and reduce risk.
Net Operating Revenue
Net operating revenue rose year-on-year by Ps.119.2 million, or 25.4%, to Ps.587.6 million in 1Q08 and was a result of the reasons stated above as well as the 21.2% increase in non-interest income (net) to Ps.166.7 million in 1Q08, from Ps.137.5 million in 1Q07 derived from the 47.3% growth in the total loan portfolio. On a sequential comparison, net operating revenue rose 15.1% from Ps.510.6 million in 4Q07.
Net Operating Income
Net operating income for 1Q08 increased year-on-year by Ps.48.2 million, or 27.9%, to Ps.220.7 million. On a sequential comparison, net operating income rose 18.7% from Ps.186.0 million in 4Q07.
During the quarter, Independencia increased its labor force by 316 people to a total of 7,779 people. Over the last twelve months, the Company's labor force increased by 1,823 people, or 30.6%, resulting in a 32.5% increase in salaries and employee benefits to Ps.258.9 million. During the last twelve months, Independencia opened 39 new offices, 8 of which were opened in 1Q08, which brings the total network to 160 units.
Table 5: Net Operating Income*
QoQ % YoY %
1Q08 4Q07 1Q07 Change Change
Financial Margin 572.5 532.6 377.0 7.5% 51.8%
Provision for Loan Losses 151.5 188.7 46.0 -19.7% 229.0%
Financial Margin After Provision for
Loan Losses 421.0 343.9 331.0 22.4% 27.2%
Non-Interest Income, net 166.7 166.7 137.5 0.0% 21.2%
- Commissions and Fees Collected 168.7 167.0 137.8 1.0% 22.4%
- Commissions and Fees Paid 2.0 0.3 0.3 546.4% 661.6%
Net Operating Revenue 587.6 510.6 468.5 15.1% 25.4%
Non-Interest Expense 366.9 324.6 295.9 13.0% 24.0%
- Salaries & Employee Benefits 258.9 261.4 195.4 -1.0% 32.5%
- Other Administrative & Operational
Expenses 108.0 63.2 100.5 70.9% 7.5%
Net Operating Income 220.7 186.0 172.5 18.7% 27.9%
Operational Data
Number of Offices 160 152 121 5.3% 32.2%
Total Labor Force 7,779 7,463 5,956 4.2% 30.6%
- Full Time Personnel 7,097 6,681 5,498 6.2% 29.1%
- Independent Sales Agents 682 782 458 -12.8% 48.9%
* Financial data in millions of Mexican Pesos.
Net Income
As a result of the factors discussed above, and after other income and expenses, as well as income tax, net income for 1Q08 increased by Ps.41.9 million, or 34.5%, to Ps.163.1 million. Earnings per share (EPS) for the quarter were Ps.0.2453 compared with Ps.0.1910 for the same period last year.
FINANCIAL POSITION
Total Loan Portfolio
The total loan portfolio rose year-on-year by 47.3% to Ps.3,588.3 million, as a result of the 38.7% increase in the number of clients during the period and a 6.2% increase in the average outstanding balance. As of March 31, 2008 Independencia had 894,595 active clients.
The total loan portfolio represented 90.3% of Independencia's total assets as of March 31, 2008, compared to 92.0% of total assets in the same period in the prior year.
Non-Performing Loan Portfolio
Total non-performing loans reached Ps.233.2 million, up 103.8% from March 31, 2007. The NPL ratio was 6.5% for 1Q08, compared to 7.0% for 4Q07 and 4.7% for 1Q07. NPL ratios remain in line with Independencia's trend over the past five years, which is within the range of 3% to 10%, measured on a monthly basis.
The NPL ratio in the CredInmediato product for 1Q08 was 6.0% compared to 6.7% for 4Q07 and 4.5% for 1Q07. The NPL ratio for the informal segment was 7.6% for 1Q08, compared to 7.9% for 4Q07 and 5.6% in 1Q07.
The coverage ratio remained unchanged year-on-year and quarter-over- quarter at 125%.
Liabilities
As of March 31, 2008 total liabilities were Ps.1,840.1 million, a 10.3% increase from Ps.1,668.9 million in March 31, 2007. This increase was the result of higher financing needs to fund the 47.3% growth in the Company's loan portfolio during the period and overall working capital.
On a sequential comparison, total liabilities rose 17.7% from 1,562.8 million in December 31, 2007.
Stockholders' Equity
As of March 31, 2008 stockholder's equity was Ps.2,135.0 million, a 117.8% increase from Ps.980.1 million in March 31, 2007. This increase was attributable to net income generated during the period, minus the stock repurchased by the Company, plus a Ps.1,033.0 million capital increase following the company's IPO in November 2007.
PROFITABILITY AND EFFICIENCY RATIOS
ROAE/ROAA
ROAE for 1Q08 was 30.2% compared with 33.0% in 4Q07 and 48.1% in 1Q07. ROAE for 1Q08 reflects the impact from the Ps.1,033.0 million increase in capital following the IPO which took place in November 2007.
ROAA for 1Q08 was 16.9% compared with 15.3% in 4Q07 and 18.6% in 1Q07.
Efficiency Ratio & Operating Efficiency
From 1Q07 to 1Q08, Independencia increased the size of its loan portfolio by 47.3% and the number of clients by 38.7%. It also added 39 offices and 1,823 people. This growth was attained while improving efficiency measures.
The efficiency ratio for 1Q08 improved to 62.4%, from 63.6% in 4Q07 and 63.2% in 1Q07.
Operating efficiency for 1Q08 was 38.0%, an improvement of 7.5 percentage points from 45.5% in 1Q07. Total average assets rose by 24.5 percentage points more than non-interest expense, driving the improvement in operating efficiency. On a sequential basis, operating efficiency increased 1.4 percentage points from 36.6% in 4Q07.
KEY EVENTS
Financiera Independencia Obtains Two New Lines of Credit
During the quarter, the Company obtained two new lines of credit with the objective of diversifying its source of funding and reduce its cost of debt, as follows:
-- A Ps.600 million line of credit from Sociedad Hipotecaria Federal (SHF)
obtained on February 2008 to exclusively finance CrediConstruye loans.
This new line of credit has a three-year maturity and pays an interest
rate of TIIE+200 bps.
-- A Ps.150 million revolving line of credit from BBVA Bancomer S.A.
obtained on March 2008. This line of credit has a two-year maturity and
pays an interest rate of TIIE+190 bps.
Financiera Independencia Opens New Operations Center
On April 14, 2008 the Company began activities at its second operations center located in the city of Aguascalientes and will be ramping up operations at the center during the next month. The operations center required an investment of approximately US$6 million and will allow Independencia to more than double capacity to process transactions, including review of loan applications, information verification, collections and call center operations.
New Mexican Accounting Standards
During the last quarter of 2007, the Mexican Financial Reporting Standards Board issued changes to the Financial Reporting Standards (NIF, from initials in Spanish) and Interpretations thereto (INIF, for their initials in Spanish), in effect as from January 1, 2008. It is estimated that these NIF and INIF will not have a significant effect on the Company's financial information. Relevant changes include:
NIF B-10 "Inflation effects": this NIF provides the provisions for recognition of the effects of inflation in an inflationary environment in the country. This NIF incorporates, among others, the following changes: i) the option to choose the use of the National Consumer Price Index or the value of Investment Units (UDI, a Mexican inflation-based index), ii) eliminates the use of the method for valuation for foreign origin assets, and iii) the initial accumulated gain or loss from holding nonmonetary assets and the initial accumulated gain or loss on monetary position to be reclassified to retained earnings or maintaining in equity any affects derived from items which have not been charged or credited to the income statement.
INIF - 9, "Presentation of comparative financial statements required by NIF B-10".
The Financial Statements for years prior to 2008 that are comparable to those for 2008 must be stated in monetary units of purchasing power as of the date of the most recent financial statements prepared using the comprehensive method specified in paragraph 76 of NIF B-10. In other words, said financial statements, including those for interim dates, must be presented in pesos of December 2007 purchasing power.
Inflationary. For the purposes of this Standard, an economic environment is considered to be inflationary when the accumulated inflation for the three periods immediately prior equals or exceeds 26%.
Non inflationary. For the purposes of this Standard, an economic environment is considered to be non-inflationary when the accumulated inflation for the three periods immediately prior is below 26%.
1Q08 EARNINGS CONFERENCE CALL
Day: Friday, April 25 2008
Time: 12:00 PM US ET; 11:00 AM Mexico City time
Dial-in number: 888-713-4213 (US & Canada)
617-213-4865 (International & Mexico)
Access Code: 13809747
Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. You will receive a code that allows you to enter the call directly. Pre-registration only takes a few moments, and you may do so at any time, including up to and after call start time. To pre-register, please click the link above. Alternatively, if you would rather be placed into the call by an operator, please call at least 15 minutes prior to call start time.
Web cast: A live web cast of the conference call and replay will
be available at http://www.independencia.com.mx/.
Pre-registration: If you would like to pre-register for the conference
call use the following link:
https://www.theconferencingservice.com/prereg/key.process?key=PBY7EBFR6
Pre-registering is not mandatory but is recommended as
it will provide you immediate entry into the call and
will facilitate the timely start of the conference. You
will receive a code that allows you to enter the call
directly. Pre-registration only takes a few moments,
and you may do so at any time, including up to and
after call start time. To pre-register, please click
the link above. Alternatively, if you would rather be
placed into the call by an operator, please call at
least 15 minutes prior to call start time.
Replay: Starting Friday, April 25, 2008 at 2:00 PM US ET,
ending at midnight US ET on Friday, May 2, 2008. Dial-
in number: 888-286-8010 (US & Canada); 617-801-6888
(International & Mexico). Access Code: 38384443.
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. 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 March 31, 2008, Independencia had a total outstanding loan balance of Ps.3,588.3 million, operated 160 offices in 112 cities throughout 30 of Mexico's 32 federal entities and had a total labor force of 7,779 people. The company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". More information can be found at http://www.independencia.com.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.
# # # TABLES TO FOLLOW # # #
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.
Consolidated Balance Sheet
As of March 31, 2008 and 2007
(Millions of Mexican Pesos)
Absolute
1Q08 1Q07 Change % Change
ASSETS
Cash 76.5 28.2 48.3 171.4%
Investments in Securities 84.9 37.1 47.9 129.1%
Cash and Cash Equivalents 161.4 65.3 96.2 147.4%
Performing Loans 3,355.1 2,321.7 1,033.4 44.5%
Non-Performing Loans 233.2 114.4 118.8 103.8%
Total Loan Portfolio 3,588.3 2,436.1 1,152.1 47.3%
Allowances for Loan Losses (291.5) (143.0) (148.5) 103.8%
Total Loan Portfolio - Net 3,296.8 2,293.1 1,003.7 43.8%
Other Accounts Receivables - Net 76.7 65.3 11.4 17.5%
Property, Plant & Equipment - Net 187.3 93.6 93.7 100.1%
Deferred Income Tax 206.8 99.7 107.1 107.4%
Other Assets 46.1 32.1 14.1 43.8%
Total Assets 3,975.1 2,649.0 1,326.1 50.1%
LIABILITIES
Bank and Other Entities Loans 1,642.4 1,530.4 112.0 7.3%
Other Accounts Payable 197.7 138.5 59.2 42.8%
Total Liabilities 1,840.1 1,668.9 171.3 10.3%
STOCKHOLDERS' EQUITY
Capital Stock 153.6 149.8 3.8 2.5%
Additional Paid-In Capital 1,640.1 643.5 996.6 154.9%
Capital Reserves 71.8 71.9 (0.1) (0.2%)
Retained Earnings 269.5 115.0 154.6 134.4%
Minority Interest - - - 0.0%
Total Stockholders' Equity 2,135.0 980.1 1,154.9 117.8%
Total Liabilities and Stockholders'
Equity 3,975.1 2,649.0 1,326.1 50.1%
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.
Consolidated Income Statement
For the Three-Month Periods Ended March 31, 2008 and 2007
(Millions of Mexican Pesos)
Absolute
1Q08 1Q07 Change % Change
Interest Income 610.5 425.9 184.6 43.3%
Interest Expense 38.0 40.0 (2.0) (5.1%)
Monetary Loss - Net - (8.8) 8.8 (100.0%)
Financial Margin 572.5 377.0 195.5 51.8%
Provision for Loan Losses 151.5 46.0 105.4 229.0%
Financial Margin After Provision
for Loan Losses 421.0 331.0 90.0 27.2%
Commissions and Fees Collected 168.7 137.8 30.9 22.4%
Commissions and Fees Paid 2.0 0.3 1.7 661.6%
Market Related Income - - - n/a
Net Operating Revenue 587.6 468.5 119.2 25.4%
Non-Interest Expense 366.9 295.9 71.0 24.0%
Net Operating Income 220.7 172.5 48.2 27.9%
Other Income - Net 5.0 16.7 (11.7) (70.0%)
Total Income Before Income Tax
and Employees' Statutory Profit
Sharing 225.8 189.3 36.5 19.3%
Income Tax and Employees'
Statutory Profit Sharing
Current 92.1 48.0 44.1 91.9%
Deferred (29.5) 20.0 (49.6) (247.6%)
Total Income Before Minority
Interest 163.1 121.3 41.9 34.5%
Minority Interest 0.0 0.0 - n/a
Net Income 163.1 121.3 41.9 34.5%
Weighted Average Number of Shares 665 635 30.1 4.7%
EPS 0.2453 0.1910 0.05 28.5%
FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.
Key Ratios & Operating Data
For the Three Month Periods Ended March 31, 2008 and 2007
(Millions of Mexican Pesos)
1Q08 4Q07 1Q07 QoQ % YoY %
Key Ratios
Profitability & Efficiency
NIM after Provisions Excl.
Fees (1) 45.9% 40.4% 54.1% 5.5 pp -8.3 pp
NIM after Provisions Incl.
Fees (2) 64.0% 60.0% 76.6% 4.1 pp -12.6 pp
ROAA (3) 16.9% 15.3% 18.6% 1.6 pp -1.7 pp
ROAE (4) 30.2% 33.0% 48.1% -2.9 pp -17.9 pp
Efficiency Ratio (5) 62.4% 63.6% 63.2% -1.1 pp -0.7 pp
Operating Efficiency (6) 38.0% 36.6% 45.5% 1.4 pp -7.5 pp
Capitalization
Equity to Total Assets 53.7% 58.4% 37.0% -4.7 pp 16.7 pp
Credit Quality Ratios
NPL Ratio (7) 6.5% 7.0% 4.7% -0.5 pp 1.8 pp
Coverage Ratio (8) 125.0% 125.0% 125.0% 0.0 pp 0.0 pp
Operating Data
Number of Clients 894,595 833,902 645,001 7.3% 38.7%
- Formal Sector 583,727 557,907 475,164 4.6% 22.8%
- Informal Sector 310,868 275,995 169,837 12.6% 83.0%
Number of Offices 160 152 121 5.3% 32.2%
Total Labor Force 7,779 7,463 5,956 4.2% 30.6%
- Full Time Personnel 7,097 6,681 5,498 6.2% 29.1%
- Independent Sales Agents 682 782 458 -12.8% 48.9%
(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 Assets
(4) ROAE: Net Income / Average Equity
(5) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues
(6) Operating Efficiency: Non-interest Expense / Average Assets
(7) NPL Ratio: Non-Performing Loans / Total Loan Portfolio
(8) Coverage Ratio: Allowances for Loan Losses / Non-Performing Loans
Financiera Independencia
