Financiera Independencia, one of Mexico’s leading microfinance companies that provides personal loans to low income individuals, yesterday announced it’s quarterly results for the period ending September 30, 2010.
Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, “We continue to take the necessary actions to strengthen our business and position ourselves for future growth. Finsol, our group lending segment, continues to show a strong performance, with the loan portfolio growing sequentially by 24.3% this quarter. Furthermore, the number of individuals in each group increased in size, and this has resulted in improved productivity and better asset quality. We are very well positioned to continue to deliver healthy growth in this segment.”
Highlights of Financiera Independencia’s 3rd Quarter Results
- Net income rose to 11.6% for the quarter and 12.1% for the first nine months, on a year-on-year basis.
- Loan portfolio growth of 16.9% YoY, driven by a 12.2% increase in client base, mainly from CrediPopular and Finsol.
- Finsol’s total loans reached Ps.973.6 million in 3Q10, a 24.3% sequential growth from the Ps.783.4 million posted on 2Q10.
- Non-performing loans to total loans ratio improved to 10.5%, compared to 12.5% in 3Q09.
- NIM after provisions including fees was 41.1% in 3Q10 below the 46.0% in 3Q09, reflecting the effect of the surplus cash remaining from the US$200 million bond issue. For the first nine months of the year this ratio stood at 49.7% compared to 48.2% in 9M09.
- Provisions for loan losses in 3Q10 represented 31.1% of financial margin, compared with 45.2% in 3Q09, and 32.5% in 2Q10.
- Efficiency ratio was 84.5% in 3Q10, compared to 77.7% a year ago.
- Equity to total assets increased to 34.7% from 31.5% in 3Q09, and 34.1% in 2Q10.
- ROE in 3Q10 down to 15.1% from 19.8% in 2Q10 and 23.2% in 3Q09, mainly due to the Ps.850 million capital increase in 1Q10 to fund
- Finsol’s acquisition. For the first nine months of the year the ROE was 21.9%, compared to 29.7% in 9M09.