Mexico City, July 23rd, 2020 – UNIFIN Financiera, S.A.B. de C.V. (“UNIFIN” or “the Company”) (BMV: UNIFINA), announces its results for the second quarter of 2020 (“2Q20”). 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”).
2Q20 Highlights
- The Company has signed three new credit facilities; 1) the increase of our Nafin/Bancomext credit facility for a total amount of 6.2 billion pesos, of which 2.7 billion is incremental capacity, 2) a new credit line with a local commercial bank amounting to 5 billion pesos and 3) successfully refinance 70 million dollar facility with Barclays Bank. We are also in the process of closing the refinancing of 300 million dollars related to market securitizations that are currently under an amortizing schedule.
- The Company successfully renewed all the revolving lines maturing during the quarter.
- During 2020 the company repurchased the equivalent of USD 26 million in face value bonds, generating a one-off gain of Ps. 134 million
- As a consequence, the Company’s credit ratings, including those related to lease securitizations, were reaffirmed by S&P and Fitch.
- Interest income in 2Q20 rose by 7.4% vs. 2Q19 to Ps. 2,804 million, mainly driven by income from the leasing and auto loans businesses.
- The weighted average funding cost decreased to 9.9% in 2Q20 from 10.1% in 2Q19.
- Financial margin in 2Q20 ended at Ps. 1,068 million, a 16.6% increase compared to 2Q19, reflecting the Company’s ability to control interest costs throughout the quarter.
- The loan loss reserve for 2Q20 was Ps. 628 million, an increase of 20x vs. 2Q19.
- OPEX as percentage of sales improved by 20 bp to 13.3% in 1Q20 from 13.5% in 2Q19.
- Net income for 2Q20 closed at Ps. 261 million compared to Ps. 453 million in 2Q19.
- The total loan portfolio amounted to Ps. 63,826 million in 2Q20, while NPL ratio stood at 5.7% and our loan loss reserve coverage was 50.8%.
- Capitalization ratio excluding MTM was 20.4%.
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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
Tel: +52 (55) 4162-8270
E-mail: unifin_ri@unifin.com.mx
Website: www.unifin.com.mx