UNIFIN Announces Fourth Quarter 2020 Results

Mexico City, February 18th, 2021 – UNIFIN Financiera, S.A.B. de C.V. (“UNIFIN” or “the Company”) (BMV: UNIFINA), announces its results for the fourth quarter of 2020 (“4Q20”). The Financial Statements have been prepared based on International Financial Reporting Standards (“IFRS”), in accordance with the accounting criteria of the Mexican National Banking and Securities Commission (“CNBV”) and filed with the Mexican Stock Exchange (“BMV”). 

Full Year 2020 and 4Q20 Highlights

  • Interest income in 2020 rose by 3.1% vs. 2019 to Ps. 11,094 million. In 4Q20, interest income decreased by 4.9% vs. 4Q19 to Ps. 2,759 million.
  • The financial margin in 2020 ended at Ps. 4,010 million, an increase of 5.0% vs. 2019. The financial margin for 4Q20 ended at Ps. 907 million, a 16.9% decrease vs. 4Q19.
  • The creation of loan loss reserves in 2020 ended at Ps. 1,433 million, 3.4x that of 2019. For 4Q20, reserves grew Ps. 283 million, a 3.6% increase vs. 4Q19.
  • For 2020, net income decreased by 30% vs. 2019 mainly driven by the creation of higher provisions, reaching Ps. 1,364 million. In 4Q20, net income was Ps. 306 million.
  • OPEX as a percentage of interest income remained stable during 2020 at 13.3%.
  • The total portfolio at the end of 2020 reached Ps. 65,125 million, an increase of 11.1% vs. 2019.
  • The NPL ratio was 4.8% at the end of 2020.
  • The NPL coverage ratio increased to 81.0% at the end of 2020, vs. 60.6% at the end of the previous year.
  • The capitalization ratio ended the year at 21.4% vs. 19.0% at the end of 2019. The capitalization ratio excluding MTM was 24.8% vs. 21.7% in 4Q19.

Recent Developments

  • On January 28, the Company carried out the pricing of a new offering of Senior Notes for an amount of US$400 million with a 9.875% coupon and an exchange offer for the senior notes 2022, 2023 and 2025. The transaction for US$400 million was oversubscribed by 3.4 times. The exchange offer finalized on February 17, with a total exchange for US$129.8 million from the old notes and issuing US$127. 6 million for the 2029 notes totalizing the 2029 notes issuance for US$527.6 million.

 

Miranda Newswire – Full Press Release: Download PDF

 

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.

 

Investor Relations Contact Details

David Pernas – Director, IR & Corporate Finance
Lucia Badiola – Investor Relations
Fernanda Molina – Investor Relations
Tel: +52 (55) 4162 8270
E-mail: unifin_ri@unifin.com.mx
Website: www.unifin.com.mx

 
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, auto loans 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.

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