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 second quarter (“2Q18”). 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 Revenue increased 21.5% to Ps. 4,450 million in 2Q18.
- Nominal financial margin increased by 6.7% y-o-y.
- OPEX as a percentage of total revenues improved to 6.3% in 2Q18 vs. 6.7% at the close of 2Q17.
- Net income reached Ps. 406 million in 2Q18.
- Cash & cash equivalents grew 239.7% reaching Ps. 7,753 million.
- As of June, 30 2018, total loan portfolio reached Ps. 48,116 million, up 36.0% y-o-y.
- NPL ratio represented 0.84% of the total loan portfolio.
- Net fixed assets and total assets increased 33.7% and 47.6%, respectively, at the close of 2Q18.
Message from the CEO:
During the second quarter, Mexico’s main concerns continued to be related to the national elections and NAFTA negotiations. As we know, the differences between the political platforms and the postponement in a resolution of our current trade agreements, continued to cause economic and political uncertainty. Considering such scenario, we experienced a significant slowdown in the decision-making process of our clients, which impacted our origination for the first half of the year.
In light of the aforementioned uncertainties, the Company continued to apply its conservative risk management strategy, and in the past quarter, covered its financial requirements from any potential credit crunch. Through these measures, UNIFIN borrowed a significant amount of cash from various credit facilities, which directly impacted its interest expense, therefore the financial margin. We believe this was the prudent way to proceed given the volatility we saw in the markets.
The outcome of the elections, held on July 1 favored MORENA’s candidate, Andres Manuel Lopez Obrador. Election results aside, we believe this process demonstrates that Mexico has a true democratic system and we celebrate the decision made by millions of voters.
We will continue monitoring the newly-elected government's upcoming steps and await the implementation of new policies in order to identify and leverage from potential growth opportunities that may arise. At UNIFIN we are optimistic that the second half of the year will be more dynamic in terms of economic activity and we will focus on delivering solid results for our investors.
Luis Barroso, CEO
For a full version of UNIFIN’s Second Quarter 2018 Earnings
Release, please visit:
Date: Friday, July 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.