Unifin Announces First Quarter 2020 Results

1Q20 Highlights

• Interest income in 1Q20 rose by 22.0% vs. 1Q19 to Ps. 2,926 million, mainly driven by the income from the leasing and auto loans businesses.
• Financial margin in 1Q20 ended at Ps. 1,125 million, a 29.2% growth compared to 1Q19, reflecting the Company’s ability to control interest costs throughout the quarter.
• The loan loss reserve for 1Q20 was Ps. 127 million, an increase of 114.5% vs. 1Q19.
• The weighted average funding cost remained at 10.1% in 1Q20 vs. 1Q19.
• Opex as percentage of sales improved by 80 bp to 12.7% in 1Q20 from 13.5% in 1Q19.
• Operating income in 1Q20 reached Ps. 570 million, a growth of 29.7% vs. Ps. 440 million in 1Q19.
• Net income for 1Q20 closed at Ps. 413 million compared to Ps. 473 million in 1Q19. This decrease is primarily attributed to additional loan loss reserves, which are calculated based on our actuarial model, as a result of the current global situation.
• Cash and cash equivalents in 1Q20 reached Ps. 3,568 million, reflecting solid liquidity for the rest of the year.
• The total loan portfolio amounted to Ps. 63,340 million in 1Q20, an increase of 34.8% vs. 1Q19. The portfolio quality showed stability with a NPL ratio of 4.3%.
• The Company successfully renewed all the revolving lines maturing during the quarter. 

Miranda Newswire – Full Press Release: Download PDF

Investor Relations Contact Details

David Pernas – Director, IR & Corporate Finance
Estefania Vazquez – Investor Relations
Tel: +52 (55) 4162-8270
E-mail: unifin_ri@unifin.com.mx

Forward Looking Statements

This document may contain certain forward-looking statements. These statements are non-historical facts, and they are based on the current vision of the Management of UNIFIN Financiera, S.A.B. de C.V., for future economic circumstances, the conditions of the industry, the performance of the Company and its financial results. The terms “anticipated”, “believe”, “estimate”, “expect”, “plan” and other similar terms related to the Company, are solely intended to identify estimates or predictions. The statements relating to the declaration or the payment of dividends, the implementation of the main operational and financial strategies and plans of investment of equity, the direction of future operations and the factors or trends that affect the financial condition, the liquidity or the operating results of the Company are examples of such statements. Such statements reflect the current expectations of the management and are subject to various risks and uncertainties. There is no guarantee that the expected events, trends or results will occur. The statements are based on several suppositions and factors, including economic general conditions and market conditions, industry conditions and various factors of operation. Any change in such suppositions or factors may cause the actual results to differ from expectations.

About the Company

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.