MEXICO CITY--(EON: Enhanced Online News)--UNIFIN Financiera, S.A.B. de C.V. SOFOM, E.N.R. (“UNIFIN” or “the Company”) (BMV:UNIFIN), announced today its results for the fourth quarter (“4Q16”) and twelve months of 2016 (“2016”). 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 44.4% to Ps. 2,677 million in 4Q16.
- Nominal financial margin of Ps. 656 million in 4Q16 (24.5% margin).
- OPEX, as a percentage of total revenues, improved to 7.8% in 4Q16 vs. 12.5% at the close of 4Q15.
- Operating income reached Ps. 376 million, an increase of 55.0%.
- Net income rose 23.8% in 4Q16, reaching Ps. 295 million.
- As of December 31, 2016, total loan portfolio was Ps. 30,142 million, up 59.9% y-o-y.
- Net fixed assets and total assets increased 65.1% and 66.2%, respectively, at the close of 2016.
- On December 2nd, UNIFIN successfully issued a new leasing securitization of Ps. 2,500 million in two tranches. The first tranche of Ps. 1,250 million at a fixed interest rate and the second of Ps. 1,250 million at a floating rate. It is important to mention that this was the first issuance that took place in Mexico following the U.S. presidential election, highlighting the market’s confidence in UNIFIN due to its excellent track record; this issuance was oversubscribed close to 2 times despite the challenging and volatile period for both the international and local markets.
- As of December 31st, 2016, 100.0% of the Company’s debt is fully hedged into Mexican Pesos at fixed rates. 42.7% of the total debt is fixed vs. 10.7% in 2015.
Statement from the Chief Executive Officer:
2016 represented a year of great challenges due to certain events, specifically Brexit and the U.S. presidential election, which reverberated in the global and local financial markets, stock prices, bonds, interest rates, oil prices and primarily currency valuations.
In UNIFIN, we consider 2016 was a great year based on the results achieved, which were driven by the implementation of solid strategies, such as; i) strict expense controls, which resulted in the significant reduction of Opex as % of total revenues (10.7% in 2015 vs. 8.4% in 2016) despite the personnel increase of 20.0%, ii) enhancement of the financial liabilities structure, fixing 42.7% of the total financial liabilities vs. 10.7% in 2015. Currently, 29.3% of the Company’s total debt has TIIE CAPS and only 28.0% of our debt remains with floating rates vs. 62.8% in 2015, iii) 100.0% of the outstanding USD denominated debt is fully hedged, eliminating any FX exposure, iv) the weighted average maturity of our debt substantially improved to 44.2 months vs. 35.3 months on the weighted average maturity of our portfolio, v) US$ 5.0 million was invested in new technology infrastructure, vi) consolidation of regional offices; these offices represented contributed to 35.0% of the Company’s total origination.
As a result of these implemented strategies, UNIFIN concluded another year of continuous growth, once again exceeding our internal budgets. Total revenues, operating income and net income increased 44.9%, 34.3% and 40.9%, respectively, year-over-year. Additionally, total assets increased 66.2%, total portfolio reached Ps. 30,142 million, a 59.9% increase when compared to the same period of 2015, and despite the portfolio’s significant growth, the NPL ratio was 0.59%, evidence of our strong operations and the prudent risk management approach.
These strong results were reached, despite the increase of over 250 bps in cost of funding for 2016. Notwithstanding the impact in our interest expense, the Company achieved to maintain its profitability, reaching 24.8% on ROAE and 3.6% on ROAA.
Finally, at UNIFIN we will continue our commitment to Mexico, financing the SMEs throughout the country, as we continue to identify growth potential in these markets, maintaining the highest standards of operating PRUDENCE and the best corporate practices.
Luis Barroso, CEO of UNIFIN
For a full version of UNIFIN’s Fourth Quarter 2016 Earnings
Release, please visit:
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 Fourth Quarter 2016 Earnings Conference Call
Date: February 22, 2017
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, 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
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: 63188705