Financiera Independencia Sab De Cv · BMV:FINDEP
Financiera Independencia Sab De Cv — Q4 2023 Earnings Presentation
17 slides from Financiera Independencia Sab De Cv's earnings presentation, 2024
Slide 1: 4Q23 Company Presentation
4Q23 fal Wi a ra ic
Slide 2: Company Overview
Company Overview Findep (the “Company”), leader in bringing financial inclusion to the underserved Hispanic communities in North America through responsible lending and insurance products. Key Pillars Subsidiaries Big underserved market In Mexico, 51%1 of the population is unbanked and in the US 29%2
Slide 3: 4Q 2023 Highlights
4Q 2023 Highlights Highlights Other Milestones Findep’s strategy in improving its maturities profile, and strengthening its balance sheet, is reflected on this quarters results: Full early amortization Net Profit MX$ 215 million Net Profit MX$ 185 million HSBC credit line Of the 8.0% Senior Notes due Ju
Slide 4: Current Situation: Strengthened Balance Sheet
Current Situation Strengthened Balance Sheet 2023 vs. 2022 vs. Million Pesos 2016 2022 2023 2016 2023 Total Assets 12,155 11,686 10,555 -13% -10% Tangible Assets (a) 10,568 10,677 9,546 -10% -11% Total Portfolio 7,448 8,560 7,647 3% -11% Total Portfolio (FISA+AEF+AFI) 5,476 8,560 7,647 40% -11% Net
Slide 5: Current Situation: Benefiting from operating efficiencies
Current Situation Benefiting from operating efficiencies Principal lines of Income Statement 2016 2023 % of average portfolio % of average portfolio *LLR methodology is not comparable as we implemented the CNBV methodology in 1Q22. As a proxy, TTM write-offs to average portfolio decreased from 17.6% i
Slide 6: Our strategy and execution have yielded consistent gains in net income
Current Situation Our strategy and execution have yielded consistent gains in net income Net Income excluding one-off, non-cash effects on results (Million Pesos) 3.0x * Excluding write-off of Finsol Mexico’s goodwill effect for MXN 448 m in 2020, and MXN 311 m in excess discretionary reserves, whic
Slide 7: Our strategy and execution have yielded consistent gains in net income
Our strategy and execution have yielded consistent gains in net income Excluding one-offs non-cash events 1Q 2Q 3Q 4Q Total 2012 34 (38) 8 (120) (116) 2013 51 56 66 81 254 2014 101 63 78 76 318 2015 60 39 63 47 209 2016 53 40 81 60 234 2017 68 66 60 30 225 2018 27 82 74 80 262 2019 63 89 76 97 324 2
Slide 8: Investment Highlights
Investment Highlights 1 Unique ● Stable and profitable throughout economic cycles Business ● Knowledge of the segment and the business built through Model experience with millions of loans originated 2 ● Continued investment in analytics Balance risk ● Focus on businesses where we have deep expertise
Slide 9: Unique Business Model
1 Unique Business Model Consistent profitability and low volatility through crises Consistent Profitability and Improving Asset Quality* Our portfolio has yielded consistently over 40% annually in Total Operating Revenue even through the worst of the pandemic. Likewise, NPLs have continued to decrease
Slide 10: Balance risk and growth: Mexico and US Portfolio Performance
2 Balance risk and growth Mexico and US Portfolio Performance 4Q23 vs. 4Q20 +24% AFI 4Q23 vs 4Q20 +37% MEX 4Q23 vs 4Q20 +29% 10
Slide 11: Balance risk and growth
2 Balance risk and growth Focus on individual unsecured loans to simplify the corporate structure ● Individual unsecured loans can achieve efficiencies through digital transformation. ● Aligned with our expertise. Strong skills in Data Analytics, Risk Management, and Systematic Operation are key to s
Slide 12: Balance risk and growth: Strengthened Balance Sheet
2 Balance risk and growth Strengthened Balance Sheet ● Clear message of long term commitment to debt investors on behalf of equity holders. ● Better position to navigate challenging market. ● Exchange Offering for outstanding 2024 bonds extending their maturity to 2028. ● Cash redemption of remainin
Slide 13: Growth in the US
3 Growth in the US AFI has grown 2.9x since 2016 AFI (US) Portfolio, USDm ● Our US portfolio has grown 2.9x in the last 7 2.9x 163m years, a 16.3% CAGR, mostly in California. ● Unserved Hispanic market (62m) in the US, with California being the largest market. ● Proven business model poised for grow
Slide 14: Growth in the US: operating leverage
3 Growth in the US An increase in operating leverage has yielded significant efficiency AFI Non-Interest Expenses / Average Loan Portfolio 14
Slide 15: Efficiency through technology
4 Efficiency through technology Technology has allowed us to do more with less Loan Portfolio per Employee (Thousands MXN) Initiatives ● Migrating IT platform to the cloud. 2.3x ● Developed mobile tools to enable efficiency of Customer Service staff. ● Self service tools for our customers. Outcome ● O
Slide 16: Efficiency through technology
4 Efficiency through technology Technology has allowed us to do more with less Monthly average origination per employee (Includes all FINDEP employees). Thousands MXN +43% 16
Slide 17: Slide 17
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