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Company Presentation
3Q19
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Disclaimer
This presentation has been prepared by Financiera Independencia, S.A.B. de C.V, Sociedad Financiera de Objeto Múltiple, Entidad No Regulada (the “Company”, “Financiera Independencia”, “Findep”) solely
for use at this presentation to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as
relevant persons). This presentation is only directed at relevant persons and any investment or investment activity to which the presentation relates is only available to relevant persons or will be engaged in
only with relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or
any of its contents.
This presentation was prepared solely for informational purposes and does not constitute, and is not to be construed as, an offer or solicitation of an offer to subscribe for or purchase or sell any securities. The
securities mentioned in this presentation have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or any U.S. state securities laws. Accordingly, the
securities will be offered and sold in the United States only to qualified institutional buyers, as defined under Rule 144A of the Securities Act, in reliance on exemptions from registration provided under the
Securities Act and the rules thereunder, and outside the United States in accordance with Regulation S under the Securities Act.
This presentation is confidential to the recipient. Accordingly, any attempt to copy, summarize or distribute this presentation or any portion hereof in any form to any other party without the Company’s prior
written consent is prohibited. At the request of the Company, the recipient will promptly return all non-public material received from the Company (including this presentation) without retaining any copies
thereof.
The information contained in this presentation is exclusively the responsibility of the Company and has not been reviewed or authorized by the Mexican National Banking and Securities Commission (Comisión
Nacional Bancaria y de Valores), or the CNBV. The notes have not been and will not be registered with the Mexican National Securities Registry (Registro Nacional de Valores), maintained by the CNBV and
therefore may not be publicly offered or sold in Mexico, except that the notes may be offered and sold to Mexican institutional and accredited investors pursuant to a private placement exemption set forth in
Article 8 of the Mexican Securities Market Law (Ley del Mercado de Valores) and the regulations issued thereunder, as amended. As required under the Mexican Securities Market Law, we will notify the
CNBV of the terms and conditions of the offering of the notes outside of Mexico. Such notice will be delivered to the CNBV to comply with a legal requirement and for statistical and information purposes only;
therefore, the delivery to and the receipt by the CNBV of such notice does not and will not imply nor constitute any certification as to the investment quality of the notes, our solvency, liquidity or credit quality
or the accuracy or completeness of the information included in this offering memorandum. In making an investment decision, all investors, including any Mexican investors who may acquire notes from time to
time, must rely on their own review and examination of the Company. The acquisition of the notes by an investor who is a resident of Mexico will be made under its own responsibility.
This presentation contains forward-looking statements. Examples of such forward-looking statements include, but are not limited to: (i) statements regarding the Company’s results of operations and financial
condition, including related projections; (ii) statements of plans, objectives or goals, including those related to the Company’s operations; and (iii) statements of assumptions underlying such statements. Words
such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will” and similar expressions are intended to identify
projections and forward-looking statements but are not the exclusive means of identifying such projections and statements. By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. Caution should be taken with respect to such
statements and undue reliance should not be placed on any such forward-looking statements. Any forward-looking statements speak only as of the date of this presentation and the Company undertakes no
obligation to update or revise any forward-looking statement, whether as a result of new information or future events or developments.
This presentation does not contain all the information a person should consider before investing in the Company and no representations or warranties, express or implied, are made as to, and no reliance
should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives or any of
their respective affiliates, advisers or representatives, accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information
presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or
representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.
Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Certain data was also based on the Company’s
estimates. Accordingly, the Company makes no representations as to the accuracy or completeness of that data or the Company’s estimates, and such data and estimates involve risks and uncertainties and
are subject to change based on various factors.
Barclays Capital Inc., HSBC Securities (USA) Inc., and BCP Securities, LLC are acting only for the benefit of the Company and neither they nor any of their affiliates or respective directors makes any
representation or warranty regarding or assumes any responsibility or liability for the accuracy or completeness of, or any errors or omission in any information contained herein.
By attending this presentation you agree to be bound by the foregoing limitations and not to distribute, disclose or provide any information discussed in this presentation to any other person.
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Better Quality and Diversified Loan Portfolio
2014 3Q19 Comments
Total Loan
Portfolio
(Ps. millions)
7,073 8,753
Disciplined
growth with
focus on quality
Geographic
Mix
Expansion into
the attractive
US market
(primarily to the
Hispanic
population of the
state of
California)
NPLs (%) 7.2% 5.6% Decrease NPLs
by ~162 bps
About Financiera Independencia
Findep at a Glance Credit Story Evolution
Over 26 years expertise in microfinance:
1st SOFOL(1) authorized by CNBV (1993)
Biggest Sofom ENR (multiple purpose non-bank bank) in the
delivery of small personal loans
Historical and continuous focus on the underserved
small personal loans sectors
Services multiple markets and segments:
Mexico, USA and Brazil
Personal, group and payroll loans
Insurance and other services
1st IPO of a microfinance institution in the MSE (2007)
~700k active clients
Over 13 million loans granted and over 7 million clients served
2012
B+
87% 70%
26%
4%
6%
7%
2014
B+
BB-
Today (3Q19)
BB-
BB
Global Credit
Rating Evolution
___________________________ (1) Limited Purpose Non-bank bank
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Investment Highlights
Operating in
markets with
strong
fundamentals for
growth
Profitability tested through economic cycles
Business portfolio built through organic growth and strategic
acquisitions
Proprietary database of more than 7 million clients and 13
million credits to support analytics
Operational model that complements analytics, particularly for
segments with reduced codified information
Widespread distribution platform
2
Unique
business model
developed through
25 years in
microfinance
1
Maximizing use of
technology for
efficient growth
5
Underpenetrated markets with
positive demographic dynamics to
enable long term growth
Digital transformation of markets
enables new service models
Unique combination of data,
operational discipline and
expertise
Efficiency through migration of
operations to the Cloud and higher
adoption of mobile technology by
workforce and customers
Positioned for
strong growth in
USA
4 Proven business model in the US
mostly serving the Latin population
in California
Growth in USA will further diversify
our portfolio and should support
improvement in the Company’s
future credit rating
Committed to
balancing risk and
growth
3 One of the lowest ever NPLs serve
as a launch pad for prudent growth
to improve efficiency
Continued investment in analytics
teams and technology to ensure
proper management of risk
Transformation of the risk function
to a Group-wide CRO role
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1 Consistent Profitability in Various
Economic Cycles
Tequila Crisis: CAGR +292%
Asian Crisis: CAGR +91%
1993-1995
1996-1998
1997-1998 Russian Crisis: +67% YoY
2007-2008 Global Financial Crisis: +36% YoY
Consistent Loan Portfolio Profitability and Improving Quality
Total Operating Revenue as % of Performing Loans Portfolio(1)
___________________________ (1) Total Operating Revenue = Financial Margin after Provision for Loan Losses + Commissions + FX Gains + Other Income
Loan Portfolio Growth
(Total operating revenue as % of performing loan portfolio) (NPLs ratio %)
NPLs
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
1Q
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+26 years of leadership and innovation AFI expands outside San Francisco
2015
Buyback of US$80mm of
FINDEP 7.5% ‘19
Began IT platform
transformation and migration of
the operations to the cloud
Microfinance Institution with a
Credit-Backed Debt Securities
(Ps.1,500mm)
Issuance of US$200mm FINDEP
7.5% ‘19
1
FINDEP buys the remaining 23%
stake in AFI
2007
Microfinance institution at MSE
Initial Public Offering
Portfolio clean-up /
started new strategy
focused on quality &
profitability
Portfolio Built Through Organic Growth
and Strategic Acquisitions
Total Portfolio (Ps. millions)
Beginning of operations
SOFOL in Mexico
1993
1995
Weathered Mexico’s
economic crisis
2004
Entry into “self-
employed” market
Acquisitions
2011
2010
Acquisition Issuance of
US$200mm
FINDEP 10%
‘15
2013
2012
2014
#1
#1 #1
#1
2016
2018
Issuance of US$250mm
FINDEP 8.0% ‘24
2 28 31 47 86 171 286 380 354 531 860
1492 1783 2163
3350
4473 4812
5773
7347 6722 6837 7073 7116
7448 7955 8235
8753
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19
2017
FINDEP
celebrates 25
years as one of
the leading
microfinance
institutions in
Mexico.
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20%
26%
9% 4%
Personal Loans Group Loans
Loan portfolio
Ps. 3,525 million Ps. 2,253 million Ps. 1,787 million Ps. 799 million Ps. 390 million
Average loan balance(1) Ps. 12,060 Ps. 74,984 Ps. 15,591 Ps. 7,762 Ps. 10,889
No. Of clients 292,267 30,040 114,593 102,940 35,842
Figures as of Sept. 30, 2019
By subsidiary By geographic presence
(1) Loan portfolio divided by number of clients
NPL 6.9% 2.1% 8.0% 5.4% 3.3%
Breakdown of Loan Portfolio
Loan duration Up to 60 months Up to 48 months Up to 36 months Up to 6 months Up to 24 months
70%
26%
4%
1 Business Portfolio with Different Risk
Profiles
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1 Risk Management: Combination of
Analytics and Operational Model
Analytics Operational Model
Leverage our database of 7 million customers and 13 million loans granted
to develop risk scorecards focused on the target income segments
Application
Sales force uses state of the art technology to manage the
application process
Currently transitioning to mobile technology to speed up the
process and improve customer experience
Review
Based on risk, information provided by the customer is
verified by telephone calls or visits to ensure quality of
decisions
Lifecycle Management
Monitoring of customers’ lifecycle is carried centrally to
maximize lifecycle value through renewals and upgrades of
products
Collections and recovery also centrally supervised
Information
Collection
Sales force collects information from the application
The application is designed for the specific source of
income of the customer (e.g. salary vs. self employed
vs. small business)
External
Information
Verified with Credit Bureau, considering both the
detailed information available and the scores offered
(i.e. Credit score and credit capacity)
Credit
Scoring
Final credit score is calculated based on the internal
and Bureau scores
Cut-off points optimized for both the customer
segment and the specific characteristics of the branch
where the loans originate
Complement structured data with an operational model that allows us to
better understand willingness and ability to pay
Approval
Findep’s robust data base paired with its strong operational model create an opportunity for the
Company to deploy new technologies and create significant efficiencies
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2 Mexico: Unique Combination of Scale,
Growth Potential and Stability
___________________________ Source: Economist Intelligence Unit reports, International Monetary Fund, CONAPO
3.0%
2.4% 2.3% 2.0%
0.7%
COL CHL MEX USA BRA
2016 GDP ($ in US trillion)
4.0% 4.1%
2.1%
3.4%
4.8%
3.0%
'13 '14 '15 '16 '17 '18 3Q19
4.9% 4.8%
4.4% 4.3% 4.4%
3.6% 3.8%
'13 '14 '15 '16 '17 '18 3Q19
39% 33%
32% 30%
20% 24%
8% 11%
1% 2%
2010 2025
0-19 20-39 40-59 60-79 80-100+
26% 20%
36%
25%
17%
30%
14% 17%
7% 8%
2010 2025
D/E D+ C C+ AB
(YoY) (% of total labor force)
(% of households)
Real GDP CAGR 2015-2021E
US$0.3 US$0.2 US$1.0 US$18.6 US$1.8
Mexico Inflation Mexico Unemployment
(% of total population)
Target
Market
Target
Market
Socioeconomic Breakdown in Mexico
Age Breakdown in Mexico
28 million 37 million
114 million 133 million
18.7
millio
n
ho
us
eh
old
s
59.1
millio
n
71.8
millio
n
26.8
millio
n
ho
us
eh
old
s
6.8%
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Market Share among
NBFIs All
Caja Libertad 23% 4%
Provident 20% 4%
Financiera Independencia (México) 18% 3%
Crédito Familiar 9% 2%
Te Creemos 6% 1%
Others 23% 4%
2
___________________________ Source: Economist Intelligence Unit reports, International Monetary Fund Access Survey, World Bank, AMAI, INEGI, Reporte Nacional de Inclusión Financiera.
Low Banking Penetration and Underserved
Personal Loan Segment
Low Banking Penetration
189.0%
181.6%
133.9%
111.0%
66.8%
58.1%
52.2%
37.4%
34.4%
32.7%
14.7%
USA
Japan
UK
Chile
Brazil
Bolivia
India
Peru
Guatemala
Mexico
Argentina
Domestic Credit to Private Sector
60%
33%
42% 40%
24%
46% 42%
84%
44%
19%
US Bra Chl Col Mex
Outstanding Deposits with Commercial BanksOutstanding Loans from Commercial Banks
Mexico Undeserved Personal Loan Segment
20.0%
11.0%
4.0% 4.0%
Private Lable CC Credit Card Mortgage Personal Loan
78%
22%
Served by NBFIs:
Target
Market
(As a % of 2015 GDP)
Deposits and Loans in Commercial Banks (As a % of 2015 GDP)
Adults Using Financial Services in Mexico
Formal Credit Penetration, % of Adult Population Microfinance Market Structure (2Q19)
56.0% 68.0%
44.0% 32.0%
2012 2015
At least one product No Products
Market Share
Banco Azteca 33%
Compartamos 16%
Banco Famsa 16%
Bancoppel 13%
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2 Mexico High Potential for Growth Through
Internet and Mobile Penetration
Individuals Using Online Bank Transfers Cellular Subscriptions Using Mobile Banking
% of population
5.1%
17.2%
31.1%
57.4%
2000 2005 2010 2015
13.5
42.6
77.5
85.9
2000 2005 2010 2015
Per 100 people
Chile:
64%
Chile:
129.0
___________________________ Source: The World Bank, World Development Indicators, CNBV, Reporte Nacional de Inclusión Financiera, 2017 – 2015 data, ProDesarrollo and Other 1Q17
Individuals Using the Internet Mobile Cellular Subscriptions
19.8 21.4
24.7
27.9
2012 2013 2014 2015
Millions of users
12.1%
0.9
2.7
5.1
7.4
2012 2013 2014 2015
Millions of subscriptions
102.9%
Increasing usage of internet and mobile banking could help further market penetration in Mexico,
given room for significant growth in FinTech
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18.0%
21.7%
23.6%
30.5%
28.6%
24.8%
22.6%
16.7%
20.4% 19.3%
20.2% 20.4%
16.1% 16.7%
26.0% 24.0%
20.3%
18.2%
719 764
687
370
508 479 445 501
424 458 437 511 476 506 484 480
412 396 383 410 392 421 458 502
443 446 441 455 460 517 489
9.8%
10.4%
9.4%
5.5%
7.7%
7.3%
6.5%
7.3%
6.3%
7.2% 6.8%
5.7% 5.3%
5.6%
9.5%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Non-performing loansNPLNPL w/out extraordinary write-offLTM Write-offs as % of Total Loan PortfolioLTM Write-offs as % of Total Loan Portfolio (w/out extraordinary write-off)
Historically Low NPLs
Strategy focused on improving portfolio quality through more rigorous client selection, stricter credit
policies and enhanced collection practices, resulting in the lowest historical NPLs
3 Focused on Loan Portfolio Quality has
Resulted in Historically Low NPLs
___________________________ Note: As revolving balances in FISA increase, NPLs are over estimated vs. historical levels as NPLs for Revolving are 60+ days balances. (1) Only considers operations in Mexico as of 2Q19. Findep 3Q19
NPLs Benchmark (1)
2.0%
5.2%
7.0%
9.0%
Fincomún
Came
Findep
Crédito Familiar
Banks
NBFIs
Break Scale
2.9%
3.0%
12.7%
14.2%
Compartamos
Banco Azteca
Banco Famsa
BanCoppel
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3 Transformation of the Risk Function
Investment in Analytics Teams and Technology to
Ensure Proper Risk Management
Google Big-Query: cornerstone of our future analytics
Enables faster processing: reduction of up to 98% of
processing time for analytics
Standardization of risk, fraud and performance analytics:
single data model for all companies with shared queries and
reporting
Enables new analytics tools: will allow us to test new
analytics approaches e.g. Machine Learning
Enables the transformation of our workflows to manage
risk and productivity: transformation to concurrent workflows
(instead of sequential) with actions based on risk-based
decisions
Will serve as back-end to our new rules engine (Experian
PowerCurve), further enabling test and learn in our risk
models
CRO Function
Group-wide function to make risk management
homogeneous and ensure transmission of best practices
Optimizes risk across the portfolio - through differentiated
growth - and within each business unit - through credit
policies, thus optimizing capital deployment
Consolidates all analytics teams to enable specialization
in the customer lifecycle and improves resource allocation to
the most relevant opportunities across the business portfolio
Will simplify the architecture of credit models, ensuring
improved maintenance
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4 Platform to Capture the Latino Market in
the US
42.6
57.3
75.7
91.6
114.1
2015 2016 2017 2018 3Q19
20
26 29 29 29
2015 2016 2017 2018 3Q19
US Branches Evolution
US Loan Portfolio Evolution US Market Presence
30,040 clients
29 branches
25.7% of portfolio
AFI is the business segment with the highest total portfolio growth in the past years, with potential to
continue this positive trend serving an underserved market in the United States
Months since
opening (*) Branches
Balance per
branch
(US$ mm)
% Loan
Portfolio
24 to 36 4 2.4 9%
36 to 48 5 3.1 14%
>48 20 4.4 78%
Benchmark: SFO
>86 months 1 8.9 8%
37% of the 11.9 million Mexican immigrants in the USA are in
California (Source: Conapo)
Growth in this geography can be funded through our dollar denominated debt and access to the international markets
(*) As of 3Q19
(US$ million)
Ps. 389mm Ps. 734mm Ps. 1,182mm Ps. 1,800mm Ps.2,253 mm
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5 Positioned to Leverage New Technologies
for Efficient Growth
Digital marketing
Leverage increased penetration of internet access through
mobile devices for our customer base
Roll-out of successful social media marketing tested in AEF
and AFI
Enable a single landing page for prospects from all companies
in Mexico to allow higher conversion
Digitize the application process
Continue developing an end-user mobile application
Collection of complementary data through access of location
and contact history of customers
Third party origination through correspondents
Further digitize the operating discipline in branches
Application for performance management and supervision of
branch choreography
Digital Transformation
After successfully strengthening the quality of its loan portfolio, Findep will now focus on lowering
its operational costs through digital transformation, among other initiatives
92.1% 91.1% 91.5% 90.3% 87.4%
2015 2016 2017 2018 3Q19
28.8% 28.0% 26.7% 26.9% 25.6%
2015 2016 2017 2018 3Q19
Efficiency Ratio(1)
Operating Efficiency Ratio(2)
Opportunity
to enhance
efficiency
through new
technologies
___________________________ Note: (1) Efficiency ratio consists of administrative and promotional expenses for the period divided by the sum of (i) financial margin after provision for loan losses for the period and (ii) the
difference between (x) commissions and fees collected and (y) commissions and fees paid. (2) Operating efficiency ratio consist of administrative and promotional expenses for the period divided by average total assets for the period.
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Investment Highlights
Operating in markets with strong
fundamentals for growth
Unique business model developed through 25
years in microfinance
Maximizing use of technology for efficient
growth
Positioned for strong growth in USA Committed to balancing risk and growth
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179 179 179 Financial Summary
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Financial Statements
Balance Sheet
(Millions of Mexican Pesos)
3Q19 vs 3Q18
3Q19 2Q19 3Q18 $ %
ASSETS
Cash and Cash Equivalents 333.1 279.2 214.2 119.0 55.5%
Performing Loans 8,264.3 7,904.1 7,490.9 773.4 10.3%
Non-Performing Loans 488.8 517.2 441.1 47.6 10.8%
Total Loan Portfolio 8,753.1 8,421.3 7,932.0 821.1 10.4%
Allowances for Loan Losses (559.7) (558.7) (517.0) (42.7) 8.3%
Total Loan Portfolio - Net 8,193.4 7,862.5 7,415.0 778.4 10.5%
Other Accounts Receivable - Net 534.0 596.8 595.1 (61.1) (10.3%)
Property, Plant & Equipment - Net 266.2 260.6 270.6 (4.5) (1.6%)
Deferred Income Tax 975.9 975.4 920.2 55.8 6.1%
Derivative Financial Instruments 308.5 224.2 214.7 93.8 43.7%
Other Assets 1,921.2 1,913.2 2,030.2 (109.0) (5.4%)
Total Assets 12,532.4 12,111.9 11,660.0 872.4 7.5%
LIABILITIES
Long term debt issuance 4,774.2 4,753.8 4,688.5 85.7 1.8%
Bank and Other Entities Loans 2,739.4 2,378.5 2,250.1 489.3 21.7%
Derivative Financial Instruments - - - - n/a
Other Accounts Payable 690.7 715.0 677.6 13.1 1.9%
Total Liabilities 8,204.3 7,847.3 7,616.2 588.0 7.7%
Total Stockholders' Equity 4,328.1 4,264.6 4,043.8 284.3 7.0%
Total Liabiliies and Stockholders' Equity 12,532.4 12,111.9 11,660.0 872.4 7.5%
n/a: Not applicable
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192 55 44
228 193 81
77 77 77
160 79 142
173 206 99
134 110 165
179 179 179
Financial Statements (cont’d)
Income Statement
(Millions of Mexican Pesos)
3Q19 vs 3Q18 9M19 vs 9M18
3Q19 2Q19 3Q18 $ % 9M19 9M18 $ %
Interest Income 1,363.8 1,313.6 1,269.2 94.6 7.5% 3,985.4 3,691.3 294.1 8.0%
Interest Expense 208.4 188.6 190.9 17.5 9.2% 587.5 561.0 26.5 4.7%
Net Interest Income 1,155.4 1,125.0 1,078.3 77.1 7.1% 3,397.9 3,130.3 267.7 8.6%
Provision for Loan Losses 415.5 361.3 352.5 63.0 17.9% 1,138.4 968.3 170.2 17.6%
Net Interest Income After Provision for Loan Losses 739.9 763.7 725.8 14.1 1.9% 2,259.5 2,162.0 97.5 4.5%
Commissions and Fees Collected 114.6 108.6 128.4 (13.7) (10.7%) 327.0 354.1 (27.1) (7.7%)
Commissions and Fees Paid 21.4 19.6 16.8 4.5 26.9% 59.1 51.9 7.2 13.8%
Market Related Income (4.4) (6.3) 1.5 (5.9) (390.9%) 4.0 1.1 2.9 267.3%
Other Operating Income (expense) 74.6 71.8 75.4 (0.8) (1.1%) 212.6 219.1 (6.5) (3.0%)
Net Operating Revenue 903.3 918.2 914.3 (10.9) (1.2%) 2,744.0 2,684.5 59.6 2.2%
Non-Interest Expense 789.9 801.5 818.4 (28.5) (3.5%) 2,418.1 2,440.3 (22.2) (0.9%)
Net Operating Income (Loss) 113.5 116.7 95.9 17.6 18.3% 325.9 244.2 81.7 33.5%
Income Tax
Current 42.6 21.3 10.2 32.4 317.4% 95.9 36.7 59.1 161.1%
Deferred (5.1) 7.6 12.0 (17.2) (142.8%) 3.5 25.1 (21.7) (86.2%)
Total Income (Loss) Before Minority Interest 76.0 87.9 73.7 2.3 3.1% 226.6 182.3 44.3 24.3%
Minority Interest 0.0 0.0 (0.0) 0.0 (500.0%) 0.0 (0.0) 0.0 (266.7%)
Net Income (Loss) 76.0 87.9 73.7 2.3 3.1% 226.6 182.3 44.3 24.3%
Weighted Average Number of Shares 715.9 715.9 715.9 - 0.0% 715.9 715.9 - 0.0%
EPS 0.1062 0.1228 0.1029 0.0032 3.1% 0.3165 0.2546 0.0619 24.3%
n/a: Not applicable
20
Color
Scheme
208 123 67
192 55 44
228 193 81
77 77 77
160 79 142
173 206 99
134 110 165
179 179 179
Key Financial Ratios
Key Financial Ratios
(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
(Millions of Mexican Pesos)
3Q19 2Q19 3Q18 QoQ % YoY % 9M19 9M18 %
Key Ratios
Profitability & Efficiency
NIM after Provisions Excl. Fees (1) 33.3% 35.5% 36.2% -2.3 pp -2.9 pp 33.9% 35.0% -1.1 pp
NIM after Provisions Incl. Fees (2) 40.6% 42.7% 45.5% -2.1 pp -4.9 pp 41.2% 43.5% -2.3 pp
Provisions / Financial Margin 36.0% 32.1% 32.7% 3.8 pp 3.3 pp 33.5% 30.9% 2.6 pp
ROAA (3) 2.5% 2.9% 2.5% -0.5 pp -0.1 pp 2.4% 2.0% 0.4 pp
ROAE (4) 7.1% 8.3% 7.3% -1.2 pp -0.2 pp 7.0% 5.9% 1.1 pp
Efficiency Ratio Incl. Provisions (5) 87.4% 87.3% 89.5% 0.2 pp -2.1 pp 88.1% 90.9% -2.8 pp
Efficiency Ratio Excl. Provisions (6) 59.9% 62.6% 64.6% -2.7 pp -4.7 pp 62.3% 66.8% -4.5 pp
Operating Efficiency (7) 25.6% 26.6% 28.0% -1 pp -2.4 pp 26.0% 27.3% -1.3 pp
Fee Income (8) 10.3% 9.7% 12.2% 0.6 pp -1.9 pp 9.8% 11.3% -1.5 pp
Capitalization
Equity to Total Assets 34.5% 35.2% 34.7% -0.7 pp -0.1 pp 34.5% 34.7% -0.1 pp
Credit Quality Ratios
NPL Ratio (9) 5.6% 6.1% 5.6% -0.6 pp 0 pp 5.6% 5.6% 0 pp
Coverage Ratio (10) 114.5% 108.0% 117.2% 6.5 pp -2.7 pp 114.5% 117.2% -2.7 pp
Operating Data
Number of Clients 575,682 587,302 652,709 -2.0% -11.8% 575,682 652,709 -11.8%
- Financiera Independencia 292,267 300,928 343,579 -2.9% -14.9% 292,267 343,579 -14.9%
- Finsol México 102,940 104,332 111,489 -1.3% -7.7% 102,940 111,489 -7.7%
- Finsol Brazil 35,842 37,719 39,540 -5.0% -9.4% 35,842 39,540 -9.4%
- Apoyo Económico Familiar 114,593 116,017 133,637 -1.2% -14.3% 114,593 133,637 -14.3%
- Apoyo Financiero Inc 30,040 28,306 24,464 6.1% 22.8% 30,040 24,464 22.8%
Number of Offices 548 533 538 2.8% 1.9% 548 538 1.9%
Total Labor Force 8,001 7,892 8,155 1.4% -1.9% 8,001 8,155 -1.9%