UNIFIN Reports Third Quarter 2015 Results

Net Income Growth of 231.5% for the 3Q15 and 162.5% for 9M15

MEXICO CITY--()--UNIFIN Financiera, S.A.B. de C.V. SOFOM, E.N.R. (“UNIFIN” or “the Company”) (BMV:UNIFIN), the leading independent leasing company in Mexico, announced its financial results for the third quarter (“3Q15”) and nine-month (“9M15”) period and its Unaudited Consolidated Financial Statements for the period ended September 30, 2015. All figures presented throughout this document are expressed in nominal Mexican pesos (Ps.). All financial information has been prepared in accordance with the accounting criteria of the Mexican National Banking and Securities Commission (“CNBV”) and filed with the Mexican Stock Exchange (“BMV”).

3Q15 Highlights

- Total revenues reached Ps. 1,718.8 million during 3Q15, a 56.2% increase year-over-year from Ps. 1,100.1 million in 3Q14.

- Financial Margin increased 191.2% from Ps. 191.4 million in 3Q14 to Ps. 557.4 million in 3Q15.

- Operating income reached Ps. 355.2 million during 3Q15, up 234.5% from Ps. 106.2 million in 3Q14.

- Net income increased 231.5% during 3Q15 to Ps. 260.6 million compared to Ps. 78.6 million in 3Q14.

- Total loan portfolio increased 57.6% reaching Ps. 16,799.0 million at the end of September 2015, compared to Ps. 10,661.5 million reported at the end of September 2014, excluding allowances for loan losses.

- Total assets reached Ps. 23,223.0 million at the end of September 2015, a 74.9% increase compared to Ps. 13,281.1 million in the same period of the prior year.

- During this quarter, UNIFIN modified the accounting treatment of its cross-currency swap derivatives, used to hedge the foreign exchange risk related to its International Notes. After the change, such swaps are treated as Derivatives for Hedging Purposes (prior treatment as Derivatives for Trading Purposes).

- On September 9, UNIFIN completed its eleventh Leasing Contract Securitization for Ps. 2,000.0 million, rated “mx AAA” by Standard & Poor’s and “HR AAA” by HR Ratings.

- During August, the Company inaugurated a new regional sales office located in the city of Veracruz.

Statement from the CEO

UNIFIN achieved solid growth results during the third quarter of 2015, which are reflected in its operating and net income, continuing the trend from prior quarters. It is important to highlight that the Company achieved such results in the midst of a challenging macroeconomic environment characterized by various global factors, which motivated the adoption of a new operating strategy based on operating prudence, driven by the following:

i) Economic developments in China and Greece which destabilized the global financial markets; ii) uncertainty resulting from the extension of the U.S. Federal Reserve’s monetary policy; and iii) the abrupt decrease in oil and commodities prices to historical lows.

Such factors have had a profound impact on emerging markets, including Mexico, leading to a devaluation of the Peso, domestic budget cuts, a decrease in the country’s growth forecasts and delays in the execution of the National Infrastructure Plan.

Based on the aforementioned, the prudence strategy implemented by UNIFIN has focused on a tighter control of its credit risks, which resulted in a decrease of the credit acceptance rate from 40.0% to 37.5% during the quarter. Despite the environment, UNIFIN has continued to operate as a growing and profitable company, maintaining its financial health and constantly looking for new business opportunities.

During the third quarter of 2015, UNIFIN’s net income was Ps. 260.6 million, up 231.5% compared from Ps. 78.6 million at the close of September 2014. In addition, UNIFIN’s net income during the nine-month period increased to Ps. 855.4 million, a 162.5% increase from Ps. 325.8 million in the same period of 2014.

These results were mainly driven by the increase in revenues in the Company’s leasing portfolio, which reached Ps. 16,799.0 million at the end of September 2015, up 57.6% compared to Ps. 10,661.5 million at the end of September 2014.

Our financial ratios at the close of the third quarter substantially improved compared to the same period in 2014; our capitalization ratio grew 62.2%; in terms of profitability, ROAA grew 51.4% and ROAE grew 3.2%. The Company’s efficiency ratio improved from 46.0% to 36.3%; and lastly, the total leverage decreased 43.1%.

In preparation for 2015 year-end, we continue to closely monitor our business, keeping in mind UNIFIN’s sustained growth, always based on solid factors supporting its profitability and financial health.

Luis Gerardo Barroso, CEO of UNIFIN

About UNIFIN

UNIFIN is the leading independent Mexican leasing company, operating as a non-banking financial services company, specializing in three main business lines: operating leasing, factoring and auto and other lending. Through UNIFIN’s leasing business line, its core business line, the Company offers operating leases for all types of equipment and machinery, various types of transportation vehicles (including cars, trucks, helicopters, airplanes and other vessels) and other assets in a variety of industries. Through its factoring business line, UNIFIN provides liquidity and financing solutions to its customers by purchasing or discounting accounts receivable and by providing vendor financing. UNIFIN’s auto loans business line is focused on financing the acquisition of new and used vehicles.

unifin.ri@unifin.com.mx.

Web Page: www.unifin.com.mx

UNIFIN Third Quarter 2015 Earnings Conference Call

 
Date: Thursday, October 22, 2015

Time: 10:00 a.m. Eastern Time / 9:00 a.m. Mexico City Time

 
Presenting for UNIFIN:

Mr. José María Muñiz,Chief Institutional Relations Officer

Mr. Gerardo Mier y Terán, Chief Financial Officer

Mr. David Pernas, Investor Relations Officer

 

To access the Conference Call, please dial:

1-800-311-9408 (U.S.participants)
0-1-800-847-7666 (Mexico participants)
1-334-323-7224 (International participants)
 

Conference ID Number:32548

 

Conference Replay

 

A replay of this call will be available for 30 days

To obtain the replay,please call:
1-877-919-4059 (U.S.participants)
1-334-323-0140 (International participants)
ID Number: 45107514

Contacts

UNIFIN
Investor Relations Contact
In Mexico:
José María Muñiz Liedo, +52 (55) 5249.5805
Chief Institutional Relations Officer
jmmuniz@unifin.com.mx
or
David Pernas Sánchez, +52 (55) 4162.8270
Investor Relations Officer
david.pernas@unifin.com.mx
or
In New York:
i-advize Corporate Communications, Inc.
646-462-4517
jgomezstolk@i-advize.com

Contacts

UNIFIN
Investor Relations Contact
In Mexico:
José María Muñiz Liedo, +52 (55) 5249.5805
Chief Institutional Relations Officer
jmmuniz@unifin.com.mx
or
David Pernas Sánchez, +52 (55) 4162.8270
Investor Relations Officer
david.pernas@unifin.com.mx
or
In New York:
i-advize Corporate Communications, Inc.
646-462-4517
jgomezstolk@i-advize.com