Mexico City, October 22nd, 2020 – UNIFIN Financiera, S.A.B. de C.V. (“UNIFIN” or “the Company”) (BMV: UNIFINA), announces its results for the third quarter of 2020 (“3Q20”). 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”).
3Q20 Highlights
- The Company successfully concluded a capital increase, for an amount of Ps. 2,520 million with the issuance, subscription, and payment of 140 million shares. The capital raise strengthens our capital structure as a counter-cyclical measure under this economic environment and highlights the trust and commitment of our shareholders in the future of the business.
- The capitalization ratio was 19.9% vs. 18.2% in 3Q19. Capitalization ratio excluding MTM increased to 24.1% from 20.0% in 3Q19.
- The total loan portfolio amounted to Ps. 65,357 million in 3Q20, while the NPL ratio stood at 4.9%, an 80-basis points improvement vs. 2Q20.
- The loan loss reserve for 3Q20 closed at Ps. 395 million, an increase of 5x vs. 3Q19.The coverage ratio stood at 70.3% vs. 47.3% from 3Q19.
- During 3Q20 the Company repurchased bonds equivalent to USD 13.9 million in face value.
- Adjusted financial margin in 3Q20 ended at Ps. 515 million, mainly impacted by higher provisions in an amount of Ps. 395 million due to lower interest income related to the cautious measures taken to face the challenging economic situation.
- Net income for 3Q20 closed at Ps. 385 million compared to Ps. 472 million in 3Q19.
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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
Fernanda Molina – Investor Relations
Tel: +52 (55) 4162 8270
E-mail: unifin_ri@unifin.com.mx
Website: www.unifin.com.mx