MEXICO CITY--(BUSINESS WIRE)--UNIFIN Financiera, S.A.B. de C.V. SOFOM, E.N.R. (“UNIFIN” or “the Company”) (BMV: UNIFIN), announces its results for the first quarter (“1Q18”). All 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”).
- Total Revenues increased 62.4% to Ps. 4,387 million in 1Q18.
- Nominal financial margin increased by 49.1% y-o-y.
- OPEX improved to 6.1% in 1Q18 vs. 7.2% at the close of 1Q17. Efficiency ratio was 28.5%.
- Operating income increased 51.0% reaching Ps. 623 million at the close of the quarter.
- Net income rose 55.3% in 1Q18, reaching Ps. 471 million.
- As of March 31 2018, total loan portfolio reached Ps. 44,919 million, up 44.8% y-o-y.
- Net fixed assets and total assets increased 38.0% and 33.0%, respectively, at the close of 1Q18.
- NPL ratio represented 0.78% of the total loan portfolio.
Message from the CEO:
Despite a more favorable macroeconomic outlook compared with what we had at the close of 2017, the first quarter of 2018 registered a slow start that recovered throughout the end of the quarter. This is mainly due to the outcome of positive reports regarding a successful NAFTA renegotiation that is expected to be confirmed in the following weeks. Additionally, Moody’s Investors Service (Moody’s) recently upgraded its national sovereign debt perspective from ‘negative’ to ‘stable’. During this quarter, the Mexican Central Bank took monetary policy measures that raised the interest rate by 25 basis points. In the coming months we are expecting some volatility and uncertainty in the local market due to the Mexican election process, which will culminate in July.
At UNIFIN, we strive to maintain high standards of prudent decision-making for which we are recognized. Furthermore, we continue to uphold strict expense control policies, which have rendered extraordinary results in terms of operating efficiency. As such, we continue delivering strong and stable results, including: a 62.4% increase in total revenues compared to the same period of the previous year, a 49.1% increase in the nominal financial margin and a higher operating and net income of 51.0% and 55.3%, respectively. The Company’s total assets reached Ps. 57,369 million, an increase of 33.0%.
The Company has continued to apply a long-term debt strategy as well as covered its capital requirements for 2018. As a consequence, and as explained in the 4Q17 earnings release, the issuances (Subordinated Perpetual Notes for US $250 million and the Senior Notes due 2026 for US$300 million) enhanced the Company’s capital structure and its maturity profile which at the end of 1Q18 was 62 months compared to our portfolio maturity of 38 months. As a part of this strategy, on March 9, the Company successfully completed the full pay down of the securitization UNFINCB15 for a total amount of Ps. 2,000 million. With regards to the aforementioned, we consider these types of actions imperative for UNIFIN. In order to prepare the Company for any additional interest rate hikes that could take place, at the close of the first quarter 97.8% of the Company’s total financial liabilities are at a fixed interest rate.
In conclusion, we are pleased with the first quarter results and we will maintain our commitment to consolidate the Company in the market and support the growth of Mexico and its SMEs
Luis Barroso, CEO
For a full version of UNIFIN’s First Quarter 2018 Earnings Release, please visit: http://unifin.com.mx/ri/en/quarterly_info.php
Date: Friday, April 20, 2018
Time: 10:00 a.m. Eastern Time / 9:00 a.m. Mexico City Time
Presenting for UNIFIN:
Mr. Sergio Camacho - Chief Financial Officer
Mr. David Pernas – Head of IR & Corporate Finance
1-877-830-2576 (U.S. participants)
1-785-424-1726 (International participants)
Conference ID: 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.