UNIFIN Reports a 29.3% Operating Income Increase Reaching Ps. 413 million in 1Q17, Total Loan Portfolio Rose 50.8% Y-O-Y

MEXICO CITY--()--UNIFIN Financiera, S.A.B. de C.V. SOFOM, E.N.R. (“UNIFIN” or “the Company”) (BMV: UNIFIN), announced today its results for the first quarter (“1Q17”) figures presented throughout this document are expressed in millions of Mexican pesos (Ps.). 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”).

1Q17 Highlights

  • Total Revenues increased 37.6% to Ps. 2,701 million in 1Q17.
  • Nominal financial margin of Ps. 637 million in 1Q17 (23.6% margin).
  • OPEX, as a percentage of total revenues, improved to 7.2% in 1Q17 vs. 9.7% at the close of 1Q16.
  • Operating income reached Ps. 413 million, an increase of 29.3%.
  • Net income rose 19.3% in 1Q17, reaching Ps. 303 million.
  • As of March 31, 2017, total loan portfolio was Ps. 31,014 million, up 50.8% y-o-y.
  • Net fixed assets and total assets increased 64.6% and 54.1%, respectively, at the close of 1Q17.
  • On April 10th, UNIFIN successfully issued the largest to date leasing securitization in Mexico in an amount of Ps. 3,000 million. This new securitization consisted of two tranches, the first tranche of Ps. 1,500 million at a fixed interest rate and the second of Ps. 1,500 million at a floating rate. With this transaction, the Company improved its exposure to floating rates and enhanced its debt maturity profile. It is worth noting that this issuance was oversubscribed over 2 times. The issuance was rated “mx AAA” by Standard & Poor’s and “HR AAA” by HR Ratings.
  • Significant debt profile enhancement, while shielding UNIFIN for further interest rate increases and volatility.

Statement from the Chief Executive Officer:

The first quarter of this year started off within an uncertain political and macroeconomic environment in the international markets and Mexico was no exception. However, there has been a clear recovery in Mexico’s perceived country risk; the currency has performed strongly while at the same time, new investments in the country have been announced, reaffirming confidence levels. Additionally, the Central Bank of Mexico (Banco de México) has undertaken strong measures, such as the 75- basis points increase in 2017 reference rates. The Company also noticed that customer decision making had favorably progressed during the quarter.

In UNIFIN, we continue to work under the high standards of prudence that have characterized us. During the first quarter, we strengthened our credit and risk management approach across our acceptance and origination process. In addition, we have maintained a strict expense control policy, that has rendered extraordinary results in our operating efficiency. As such, we continue posting good and solid results such as: a 37.6% increase in total revenues compared to the same period of the previous year, a 22% increase in the nominal financial margin and higher operating and net income of 29.3% and 19.3%, respectively. The Company’s total assets reached Ps. 43,148 million, an increase of 54.1%, our total portfolio rose by 50.8% compared to the previous year, thus maintaining an NPL of only 0.7%. With this, the Company continues demonstrating its remarkable capacity to preserve healthy growth.

In addition to this, UNIFIN has continued to enhance its debt profile by; continuing to issue fixed rate debt, hedging all US-denominated financing and considerably improving the debt maturity profile. As a result of this strategy, our interest expense has been impacted in past months but we are confident this is the right strategy for shielding UNIFIN in the long term.

In the early days of April, the Company issued the largest leasing portfolio securitization in the Mexican market of Ps. 3,000 million. The transaction consisted of two tranches, half of the amount Ps. 1,500 million at a fixed rate, and the remainder Ps. 1,500 million at a floating rate. It is important to note that the issuance was oversubscribed over two times, reflecting investor confidence in the Company.

We are pleased with the results despite the challenges faced during the quarter, we are confident that we will continue growing in the Mexican market.

Luis Barroso, CEO of UNIFIN

For a full version of UNIFIN’s First Quarter 2017 Earnings Release, please visit: http://unifin.com.mx/ri/en/quarterly_info.php

Conference Call:
UNIFIN First Quarter 2017 Earnings Conference Call

Date: April 28, 2017
Time: 11:00 a.m. Eastern Time / 10:00 a.m. Mexico City Time

Presenting for UNIFIN:
Mr. Sergio Camacho, 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

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.

Contacts

Investor Relations
In Mexico:
UNIFIN
Sergio Camacho
Chief Financial Officer
or
David Pernas, +52 (55) 4162.8270
Investor Relations Officer
david.pernas@unifin.com.mx
or
In New York:
i-advize Corporate Communications, Inc.
Maria Barona / Rafael Borja
212-406-3691/3693
mbarona@i-advize.com / rborja@i-advize.com
or
Follow us:
http://twitter.com/unifin
https://www.facebook.com/UNIFIN
www.unifin.com.mx

Contacts

Investor Relations
In Mexico:
UNIFIN
Sergio Camacho
Chief Financial Officer
or
David Pernas, +52 (55) 4162.8270
Investor Relations Officer
david.pernas@unifin.com.mx
or
In New York:
i-advize Corporate Communications, Inc.
Maria Barona / Rafael Borja
212-406-3691/3693
mbarona@i-advize.com / rborja@i-advize.com
or
Follow us:
http://twitter.com/unifin
https://www.facebook.com/UNIFIN
www.unifin.com.mx