UNIFIN Reports Net Profit of Ps. 302.4 Million, Nominal Financial Margin Increase of 53.1% in 2Q16

MEXICO CITY--()--UNIFIN Financiera, S.A.B. de C.V. SOFOM, E.N.R. (“UNIFIN” or “the Company”) (BMV: UNIFIN) announced its financial results for the second quarter 2016 (“2Q16”) and first six months 2016 (“6M16”). 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”).

2Q16 Highlights

  • Revenues of Ps: 2,288.9 million, a 55.4% growth.
  • Nominal financial margin (profit) increased 53.1% to Ps. 592.8 million in the quarter.
  • Operating income of Ps. 366.0 million, an increase of 55.1%.
  • Net profit increased 77.6% during the quarter, reaching Ps. 302.4 million.
  • As of June 30th, 2016 total loan portfolio was of Ps. 23,279.2 million a 60.8% growth year over year.
  • Net fixed assets increased 51.7%, reaching Ps.17,731.7 million at the end of quarter. Total assets increased 59.4% for the same period.

Statement from the CEO

UNIFIN’s second quarter performance was in line with expectations, as the Company cleared its backlog increasing origination activity by 105.9% in operating lease portfolio, 43.1% in the factoring portfolio and 307.1% in the auto loans portfolio, compared to the same period of the prior year. Even with this continuous growth, the Company’s NPL Ratio has maintained its historical trend, resulting in 0.78% at the close of June 30, 2016.

Growth during this period was driven by the relative stability of the markets during most of 2Q16, which boosted confidence of small and medium business owners to make decisions regarding productive assets and financing. As a result, the Company’s total revenue increased to Ps. 2,288.9 million, up 55.4% compared to the second quarter of 2015. In addition, UNIFIN’s nominal financial margin and recurrent net income rose by 53.1% and 77.6%, respectively.

The total portfolio grew 60.8%, reaching Ps. 23,279.2 million, compared to Ps. 14,478.5 million at June 30, 2015, while total assets increased by 59.4%.

The critical moment for the quarter occurred towards the end of the period, as on June 23rd, the UK voted to leave the European Union (“Brexit”). As a result of this decision, the markets became unstable given the political uncertainty and economic weakness that came subsequent to the referendum. The British pound fell to its lowest level since 1985, followed by a number of currencies, including the Mexican Peso. The Mexican currency suffered a strong depreciation to Ps. 19.51 per U.S. dollar in the days following the resignation of the British Prime Minister. After a few days of negative activity, the markets and the currencies began to stabilize. However, it is difficult to determine the predominant tendencies for the near future.

The global economic environment is undergoing changes that we expect will continue to impact the Mexican economy. However, UNIFIN is prepared to face the effects of this global volatility, as it focuses on servicing the SME sector of Mexico, where there is strong and long-term demand for our products. In addition, the Company’s internal process of excellence for reaching clients, its cautious portfolio management and its asset quality will enable UNIFIN to remain industry leader and continue delivering shareholder returns.

Luis Gerardo Barroso, CEO of 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 Second Quarter 2016 Earnings Conference Call


Date: July 22, 2016

Time: 12:00 p.m. Eastern Time / 11:00 a.m. Mexico City Time

Presenting for UNIFIN:

Mr. Jose Maria Muñiz, Chief Institutional Relations Officer

Mr. Gerardo Mier y Terán, Corporate Chief Financial Officer

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


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: 48174552


Investor Relations
In Mexico:
José María Muñiz Liedo, Chief Institutional Relations Officer
Tel. +52 (55) 5249-5805
David Pernas Sánchez, Investor Relations Officer
Tel. +52 (55) 4162-8270
In New York:
i-advize Corporate Communications, Inc.
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