GENTERA S.A.B. DE C.V. ("GENTERA" OR "THE COMPANY") (BMV: GENTERA*) ANNOUNCED
24 Octubre 2016 - 3:40PM
BMV General Information
GENTERAREPORTS 3Q16 RESULTS
MEXICO CITY, MEXICO- OCTOBER 24, 2016 - GENTERA S.A.B. DE C.V.
("GENTERA" OR "THE COMPANY") (BMV: GENTERA*) ANNOUNCED TODAY
NON-AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER
PERIOD ENDED SEPTEMBER 30, 2016. ALL FIGURES WERE PREPARED IN
ACCORDANCE WITH REQUIREMENTS FROM THE NATIONAL BANKING AND
SECURITIES COMMISSION (CNBV)AND ARE EXPRESSED IN NOMINAL MEXICAN
PESOS (PS.). 3Q16 HIGHLIGHTS:
- TOTAL LOAN PORTFOLIO REACHED PS. 31,866 MILLION, A 15.9% INCREASE
COMPARED WITH 3Q15.LOAN PORTFOLIO PER SUBSIDIARY WAS DISTRIBUTED AS
FOLLOWS:
- BANCO COMPARTAMOS S.A. I.B.M. (MEXICO) (BANCO COMPARTAMOS)
REACHED PS. 24,604 MILLION, A 12.2% INCREASE VERSUS THE LOAN
PORTFOLIO FROM MICROCREDIT IN 3Q15;- COMPARTAMOS FINANCIERA (PERU)
AT PS. 6,787 MILLION, A 30.1% INCREASE VERSUS 3Q15; AND-
COMPARTAMOS S.A. (GUATEMALA) WAS PS. 475 MILLION, 35.3% HIGHER
COMPARED WITH 3Q15.- NET INCOME FOR THE THIRD QUARTER WAS PS. 918
MILLION, A 4.1% INCREASE COMPARED WITH THE NET INCOME OF PS. 882
MILLION ACHIEVED IN 3Q15.
- NET INCOME FOR 9M16 WAS PS. 2,870 MILLION, A 25.3% GROWTH
COMPARED WITH 9M15- NIM STOOD AT 57.2%, COMPARED WITH 58.2% IN
3Q15.
- ROE STOOD AT 24.8%, COMPARED WITH 28.8% DURING 3Q15.- ROA REACHED
9.3%, COMPARED WITH 10.3% IN 3Q15.
- NON-PERFORMING LOANS (NPLS) FOR 3Q16 WERE 3.33%, COMPARED TO
2.96% IN 3Q15.
- EFFICIENCY RATIO FOR 3Q16 WAS 68.2%, COMPARED TO 66.0% REPORTED
IN3Q15. - EFFICIENCY RATIO FOR THE FIRST 9 MONTHS WAS 65.8%
COMPARED WITH 68.4% IN 9M15.- ON OCTOBER 7, BANCO COMPARTAMOS
ISSUED PS. 2.5 BILLION IN LOCAL BANK BONDS FOR A TENOR OF 3 & 7
YEARS, WITH AN INTEREST RATE OF TIIE + 47 BPS AND A 7.5%FIXED RATE
RESPECTIVELY. THIS ISSUANCE WAS OVERSUBSCRIBED BY 3.3 TIMES. -
YASTAS1 EXECUTED CLOSE TO 1.6 MILLION FINANCIAL TRANSACTIONS DURING
THE QUARTER, 2.5 TIMES MORE THE NUMBER OF FINANCIAL TRANSACTIONS
EXECUTED IN 3Q15. - ATERNA2CONCLUDED THE QUARTER WITH MORE THAN 5.5
MILLION ACTIVE LIFE INSURANCE POLICIES THROUGHOUT ITS OPERATIONS IN
MEXICO, PERU AND GUATEMALA.
- INTERMEX3 WITH MORE THAN 1,500 AFFILIATES EXECUTED MORE THAN 1.1
MILLION TRANSACTIONS,REPRESENTING MORE THAN PS. 5,500 MILLION
PESOS.
- FIINLAB, GENTERAS INNOVATION LABORATORY WAS PRESENTED ON AUGUST
23. FIINLAB WILL AIM TO CREATE NEW BUSINESS MODELS FOR FINANCIAL
INCLUSION, OPENING THE DOORS TO INFINITE POSSIBILITIES TO INNOVATE
FOR THE BENEFIT OF OUR CUSTOMERS.- AT THE CLOSE OFTHE THIRD
QUARTER, 984,999 SHARES WERE REPURCHASED THROUGH THE COMPANY'S
SHARE BUYBACK PROGRAM ESTABLISHED ON APRIL 20, 2016. OUTSTANDING
SHARES AS OF SEPTEMBER30, 2016: 1,626,026,415
- AT THE END OF 3Q16, GENTERA ORGANIZED MORE THAN 680 ACTIVITIES
AND PROGRAMS IN VARIOUS COMMUNITIES; AND OVER 69 THOUSAND PEOPLE
BENEFITED FROM GENTERA'S CORPORATE SOCIAL RESPONSIBILITY PROGRAMS;
THE COMPANY INVESTED APPROXIMATELY 40.6 MILLION PESOS IN THESE
PROGRAMS.
1 GENTERA'S CORRESPONDENT NETWORK MANAGER / 2 GENTERA'S
MICRO-INSURANCE BROKER/ 3 GENTERA'S REMITTANCES COMPANY.COMMENTS
FROM MR. CARLOS LABARTHE, GENTERA'S PRESIDENT & CEO:
GENTERA CONCLUDED ANOTHER SOLID QUARTER OF CONTINUED GROWTH. AS
EVERY YEAR HAPPENS THE THIRD QUARTER TENDS TO BE A TIME OF THE YEAR
WITH SOLID DYNAMICS, AND THIS YEAR WAS NOT THE EXCEPTION. AT THE
ENDOF SEPTEMBER, THE CONSOLIDATED TOTAL LOAN PORTFOLIO REACHED PS.
31,866 MILLION, A 15.9% INCREASE COMPARED WITH 3Q15, WITH A 12.2%
GROWTH AT BANCO COMPARTAMOS, A30.1% INCREASE AT COMPARTAMOS
FINANCIERA IN PERU, AND A 35.3% GROWTH IN COMPARTAMOS S.A. IN
GUATEMALA. AT THE END OF THE THIRD QUARTER GENTERA'S FINANCIAL
SUBSIDIARIES SERVED 3.35 MILLION CLIENTS, THROUGHOUT A NETWORK OF
692 SERVICE OFFICES AND 107 BRANCHES, AND A STAFF OF MORE THAN 21
THOUSAND EMPLOYEES, WHICH ARECOMMITTED TO PROVIDE FINANCIAL
SOLUTIONS TO OUR CLIENTS.
WITH REGARDS TO ITS SUBSIDIARIES, ATERNA, INTERMEX AND YASTAS, ALL
OF THEM DELIVERED ONCE AGAIN THE RESULTS EXPECTED FOR THE QUARTER.
ATERNA CONCLUDED THE QUARTER WITH MORE THAN 5.5 MILLION ACTIVE LIFE
INSURANCE POLICIES;INTERMEX PAID 1.1 MILLION REMITTANCES, WHICH
REPRESENTED MORE $5.5 BILLION PESOS; YASTAS FINALIZED THE QUARTER
EXECUTING MORE THAN 1.6 MILLION FINANCIAL TRANSACTIONS; AND
FINALLY, FIINLAB, OUR NEWEST INITIATIVE AIMS TO DEVELOP NEW
BUSINESS MODELS TO ACHIEVE GREATER FINANCIAL INCLUSION.WE AT
GENTERA WILL CONTINUE TO WORK HARD WITH THE PURPOSE OF SERVICING
MORE CLIENTS THROUGH PERSONALIZED FINANCIAL SOLUTIONS, WITH THE
CLEAR PURPOSE OF EMPOWERING MORE AND MORE CUSTOMER THAT NOW ARE
PART OF THE UNATTENDED SEGMENT. RESULTS OF OPERATIONS
FINANCIAL RESULTS AND ECONOMIC INDICATORS
INCOME STATEMENT
THE FOLLOWING FINANCIAL RESULTS ANALYSIS IS BASED ON CONSOLIDATED
FIGURES. INTEREST INCOME REACHED PS. 5,213 MILLION, A 15.3%
INCREASE COMPARED WITH 3Q15, DUE TO SOLID PORTFOLIO GROWTH AND THE
NEW PORTFOLIO MIX. WHEN WE CONSIDER THE INTEREST INCOME GENERATED
IN THE FIRST NINE MONTHS OF 2016 THIS FIGURE STOOD AT PS.
14,660MILLION, WHICH REPRESENTED A GROWTH OR 16.3% COMPARED WITH
THE INTEREST INCOME GENERATED IN THE SAME PERIOD LAST YEAR. THIS
GROWTH IS CONSISTENT WITH THE GROWTHTHAT THE PORTFOLIO HAS
EXPERIENCED THROUGHOUT THIS YEAR.
BANCO COMPARTAMOS REPRESENTS MOST OF GENTERA'S CURRENT PORTFOLIO
AND INTEREST INCOME, WITH APPROXIMATELY 77.2% AND 87.0%,
RESPECTIVELY.
THE COMPANY'S THREE MAIN SUBSIDIARIES GRANT LOANS THAT VARY IN
TERMS OF THE AVERAGE OUTSTANDING BALANCE PER CLIENT (PS. 8,423 FOR
BANCO COMPARTAMOS, PS. 19,316 FOR COMPARTAMOS FINANCIERAAND PS.
5,935 FOR COMPARTAMOS GUATEMALA). THESE DIFFERENCES IN TICKET SIZE
HAVE TO DO WITH THE SHARE OF THE GROUP LENDING OR INDIVIDUAL
LENDING PRODUCTS IN ITSRESPECTIVE PORTFOLIO. THE YIELD FOR
GENTERA'S PORTFOLIO STOOD AT 67.1%.
INTEREST EXPENSE INCREASED BY PS. 73 MILLION, OR 31.1%, COMPARED
WITH 3Q15. THE INCREASE REFLECTS THE EFFECT OF THE NEW REFERENCE
RATE IN MEXICO AND PERU, HOWEVER THIS INCREASE IS MODERATE
CONSIDERING THAT THE REFERENCE RATE IN THE CASE OF MEXICO HAS
INCREASED OVER 40% IN THE PAST YEAR, STILL NOT CONSIDERING THE
RECENT INCREASE IN THE REFERENCE RATE THAT TOOK PLACE ON SEPTEMBER
29, AND IN THE CASE OF PERU THE REFERENCE RATE HAS INCREASED OVER
20% IN THE PAST 12 MONTHS. NET INTEREST MARGIN (NIM) FOR THE THIRD
QUARTER 2016 REACHED 57.2%, A SLIGHT DECREASE COMPARED TO 58.2%
REPORTED IN 3Q15, BUT ABOVE THE FIGURE REPORTED IN 2Q16 WHEN IT
STOOD AT 56.5%.PROVISIONS FOR LOAN LOSSES REACHED PS. 847 MILLION
DURING THE QUARTER. THIS LEVEL WAS PS. 310 MILLION, OR 57.7% HIGHER
COMPARED TO 3Q15,IN LINE WITH THE EVOLUTION OF THE PORTFOLIO MIX
WHICH IS INTEGRATED WITH DIFFERENT RISK PROFILE PRODUCTS.
PROVISIONS ARE IN ACCORDANCE WITH CNBV REGULATIONS
ANDMETHODOLOGIES, REFLECTING THE LEVEL REQUIRED FOR EACH PARTICULAR
PRODUCT.
NII AFTER PROVISIONS ROSE TO PS. 4,058 MILLION, AN 8.2% INCREASE
COMPARED TO PS. 3,749 MILLION IN 3Q15.
NIM (NET INTEREST MARGIN) AFTER PROVISIONS (NII AFTER PROVISIONS
FOR LOSSES / AVERAGE YIELDING ASSETS) FOR 3Q16 WAS 47.3%, COMPARED
TO 50.9% IN 3Q15.
COMMISSIONS AND FEE INCOME DURING THE QUARTER INCREASED 14.8% TO
PS. 365 MILLION, COMPARED WITH 3Q15. THIS LINE ITEM MAINLY
REFLECTED: I) LATE PAYMENT FEES CHARGED TO CLIENTS WITH DELINQUENT
LOANS AT BANCO COMPARTAMOS; II) FEES GENERATED AT YASTAS, ATERNA
AND INTERMEX; AND III) COMMISSIONS GENERATED AT COMPARTAMOS
FINANCIERA. THE FOLLOWING TABLE SHOWS CONSOLIDATED NUMBERS OF THE
DIFFERENT SUBSIDIARIES.
COMMISSIONS AND FEE EXPENSES DECREASED 4.3%, OR PS. 8 MILLION, TO
PS. 178 MILLION COMPARED WITH 3Q15. THIS LINE ITEM MAINLY INCLUDED:
I) FEES CHARGED BY THIRD PARTIES TO BANCO COMPARTAMOS FOR THE USE
OF THEIR NETWORKS, AS WELL AS II) FEES RELATEDTO THE OPERATION OF
YASTAS AND INTERMEX. THE FOLLOWING TABLE SHOWS CONSOLIDATED NUMBERS
OF THE DIFFERENT SUBSIDIARIES.
THE NET EFFECT BETWEEN COMMISSIONS CHARGED AND COMMISSIONS PAID IN
3Q16 REACHED PS. 187 MILLION, AN INCREASE OF PS. 55 MILLION, OR
41.7%, COMPARED WITH THE NET EFFECT OBTAINED IN 3Q15. THIS WAS
DERIVED MAINLY FROM COMMISSIONS CHARGED TO CUSTOMERS WITH
DELINQUENT ACCOUNTS AND AN INCREASE IN COMMISSIONS COMING FROM
INSURANCE SALES IN ADDITION TO FEES CHARGED BY INTERMEX RELATED TO
THE REMITTANCES SERVICES.
TRADING GAINS CAME IN AT PS.16 MILLION DURING THE QUARTER. THIS
LINE ITEM REPRESENTED THE FX GAINS WITHIN THE INTERMEX-BANCO
COMPARTAMOS BRANCHES.
OTHER OPERATING INCOME/LOSSES WHICH REFLECT THE NON-RECURRING
INCOME/EXPENSES STOOD WITH A LOSS OF PS. 265 MILLION. FOR THE THIRD
QUARTER THIS LINE ITEM REFLECTED THE FOLLOWING:1) THE TAX SHIELD
RELATED TO THE CUMULATED FISCAL LOSSES FROM YASTAS IN ITS FIRST
YEARS OF OPERATION WAS RE-EXPRESSEDIN THIS THIRD QUARTER. THE SAME
BENEFIT OF PS. 144 MILLION IS MAINTAINED BUT NOW IT IS CONSIDERED
AS A DEFERRED TAX, SO IT HAD TO BE SUBTRACTED FROM THE OTHER
OPERATING INCOME LINE AND ADDED TO THE DEFERRED TAX LINE.
2) DURING THIS THIRD QUARTER GENTERA CREATED A PROVISION LINKED TO
THE INVESTMENT AND CONVERTIBLES LOANS THAT WERE GRANTED TO MIMONI
IN THE PAST. THESE PROVISIONS WERE CREATED DUE TO THE IMPAIRMENT IN
ITS FINANCIALS, WHICH ORIGINATED AN IMPACT OF PS. 101 MILLION.
OPERATING EXPENSES REACHED PS. 2,725 MILLION, A 4.1% INCREASE
VERSUS 3Q15 WHEN EXPENSES REACHED PS. 2,617 MILLION.
- GENTERA'S SUBSIDIARIES JOINTLY TOTALED 21,248 EMPLOYEES,AN
INCREASE OF 5.8% COMPARED WITH 3Q15, MAINLY DUE TO THE
FOLLOWING:
I) OUR PERUVIAN OPERATION GREW 33.1% ON A YEAR-ON-YEAR BASIS
INTERMS OF THE NUMBER OF EMPLOYEES. THIS ADDITIONAL SALES FORCE WAS
REQUIRED TO ADEQUATELY SERVE THE CLIENT BASE AND ACHIEVE FURTHER
MARKET PENETRATION WITH THE CREDITO MUJER PRODUCT. THIS PRODUCT HAS
EXPERIENCED OUTSTANDING GROWTH IN THE PAST 12 MONTHS, ALMOST
DUPLICATING THE NUMBER OF CLIENTS SERVED ONE YEAR AGO.- SALARIES
AND BENEFITS REPRESENTED APPROXIMATELY PS. 1,669 MILLION, OR 61.2%
OF OPERATING EXPENSES.- DURING THE 3Q16, THE COMPANY HAD 578
SERVICE OFFICES AND 107 BRANCHES IN MEXICO, 71 SERVICE OFFICES IN
PERU AND 43 IN GUATEMALA FOR A TOTAL NUMBER OF 692SERVICE OFFICES
AND 107 BRANCHES. TOGETHER, THESE SERVICE OFFICES AND BRANCHES (SO
& B) REPRESENTED PS. 601.4 MILLION, OR 22.1% OF OPERATING
EXPENSES. THE CURRENT NUMBER OF SERVICE OFFICES AND BRANCHES WAS
7.0% LARGER THAN THE 747 SERVICE OFFICES THAT GENTERA HAD IN
3Q15.
- OTHERSTRATEGIC INITIATIVES AND ADVISORY SERVICES, SUCH AS: I) THE
SAP PLATFORM AND THE ERP; II) THE DEPOSIT PILOT PROJECTS; III)
YASTAS; AMONG OTHER INITIATIVES JOINTLY REPRESENTED PS. 284.4
MILLION, OR 10.4% OF OPERATING EXPENSES DURING 3Q16.
- MARKETING CAMPAIGNS REPRESENTED PS. 170.3 MILLION, OR 6.3% OF
OPERATING EXPENSES DURING THE THIRD QUARTER. IN THIS CONCEPT IS
INCLUDED THE INVESTMENT ASSOCIATED TO THE NEW LOYALTY PROGRAM WHICH
FOR THIS QUARTER AMOUNTED PS. 130.6 MILLION.
PARTICIPATION IN NET INCOMEFROM NON-CONSOLIDATED SUBSIDIARIES
REPRESENTED A LOSS DURING THE QUARTER OF PS. 17 MILLION, COMPARED
WITH A LOSS OF PS. 16 MILLION IN 3Q15. THIS LINE ITEM REFLECTS THE
CONTRIBUTION OF MIMONI, THE ONLINE-LENDING COMPANY IN WHICH GENTERA
IS INVESTING.
FOR THE THIRD QUARTER OF 2016, NETINCOME WAS PS. 918 MILLION, AN
INCREASE OF 4.1% COMPARED TO THE PS. 882 MILLION REACHED IN
3Q15.
FROM JANUARY TO SEPTEMBER 2016, NET INCOME WAS PS. 2,870 MILLION,
AN INCREASE OF 25.3% COMPARED TO THE PS. 2,291 MILLION GENERATED IN
THE SAME PERIOD LAST YEAR.BALANCE SHEET
CASH AND OTHER INVESTMENTS WERE PS. 4,354 MILLION DURING THE THIRD
QUARTER OF 2016. GENTERA CONTINUES TO MAINTAIN A CONSERVATIVE CASH
POSITION THAT ENABLES IT TO COVER OPERATING EXPENSE GROWTH, DEBT
AMORTIZATIONS AND EXPECTED PORTFOLIO GROWTH FOR THE FOLLOWING
MONTH. IT IS IMPORTANT TO NOTE THAT 53.5% OF THE CASH ON THE
BALANCE SHEET CORRESPONDED TO BANCO COMPARTAMOS, WITH PS. 2,327
MILLION HELD IN HIGHLY LIQUID ASSETS. THE REMAINDER IS HELD IN
GENTERA ACCOUNTS THROUGHOUT ITS VARIOUS SUBSIDIARIES.TOTAL LOAN
PORTFOLIO REACHED PS. 31,866 MILLION IN 3Q16, 15.9% HIGHER THAN THE
FIGURE REPORTED IN 3Q15. THE LOAN PORTFOLIO WAS DISTRIBUTED
ASFOLLOWS: 77.2% AT BANCO COMPARTAMOS; 21.3% AT COMPARTAMOS
FINANCIERA IN PERU AND 1.5% AT COMPARTAMOS IN GUATEMALA.CREDIT
QUALITY (NON-PERFORMING LOANS / TOTAL PORTFOLIO)
CONSOLIDATED NON-PERFORMING LOANS REACHED 3.33% IN 3Q16, A SLIGHT
IMPROVEMENT COMPARED TO 3.42% IN 2Q16, AND A DETERIORATION COMPARED
TO 2.96% IN 3Q15 DUE TO A HIGHER PARTICIPATION OF DIFFERENT RISK
PROFILE PRODUCTS IN THE PORTFOLIO. IT IS IMPORTANT TO MENTION THAT
BANCO COMPARTAMOS' POLICY IS TO WRITE-OFF LOANS THAT ARE PAST DUE
BY 180 DAYS OR MORE.
PERFORMANCE RATIOS AND METRICS
THE 3Q16 COVERAGE RATIO WAS 173.7%, WHICH IS IN ACCORDANCE WITH THE
NEW PORTFOLIO MIX AND WITH MEXICAN FINANCIAL REGULATIONS.
GOODWILL AMOUNTED TO PS. 913 MILLION AND WAS RELATED TO THE
ACQUISITION OF COMPARTAMOSFINANCIERA AND INTERMEX, WHICH WAS
ACCOUNTED FOR AS AN ASSET.
ROAE/ROAADURING 3Q16, GENTERA REACHED A RETURN ON AVERAGE EQUITY
(ROAE) OF 24.8%, COMPARED WITH 28.8% IN 3Q15. RETURN ON AVERAGE
ASSETS (ROAA) FOR 3Q16 WAS 9.3%, COMPARED WITH 10.3% IN 3Q15.
CONSIDERING THE ROAE YEAR TO DATE (9M16) IT STOOD AT 26.2% WHEREAS
IN THE SAME PERIOD LAST YEAR IT WAS24.9%. ROAA IN THE 9M16 PERIOD
WAS 9.9% COMPARED WITH 9.3% IN 9M15
THE FOLLOWING SECTION SETS FORTH THE NON-AUDITED FINANCIAL RESULTS
FOR THE THIRD QUARTER OF 2016 (3Q16) FOR BANCO COMPARTAMOS, S.A.
I.B.M. ("BANCO COMPARTAMOS" OR "THE BANK"), WHICH IS GENTERA'S MAIN
SUBSIDIARY AND IS LOCATED IN MEXICO. ALL FIGURES ARE EXPRESSED IN
MEXICAN PESOS AND ARE IN ACCORDANCE WITH THE CNBV REGULATIONS
APPLICABLE TO CREDITINSTITUTIONS.
FINANCIAL HIGHLIGHTS
3Q16 HIGHLIGHTS:- TOTAL LOAN PORTFOLIO REACHED PS. 24,604 MILLION,
12.2% HIGHER WHEN COMPARED WITH THE LOAN PORTFOLIO OF MICROCREDIT
LOANS REACHED IN 3Q15.
- NON-PERFORMING LOANS REACHED 3.21% IN 3Q16, COMPARED WITH 2.26%
IN 3Q15. - NET INCOME FOR 3Q16 REACHED PS. 919 MILLION,A 4.2%
INCREASE VERSUS THE PS. 882 MILLION REPORTED IN 3Q15.
- CAPITALIZATION RATIO STOOD AT 26.8%.- ROA WAS 13.0%, COMPARED
WITH 13.3% IN 3Q15.
- ROE WAS 36.9%, COMPARED WITH 38.3% IN 3Q15.- BANCO COMPARTAMOS
CONCLUDED THE QUARTER WITH A TOTAL OF 578 SERVICE OFFICES AND 107
BRANCHES.- ON OCTOBER 7, BANCO COMPARTAMOS ISSUED PS. 2.5 BILLION
IN LOCAL BANK BONDS FOR A TENOR OF 3 & 7 YEARS, WITH AN
INTEREST RATE OF TIIE + 47BPS AND A 7.5% FIXED RATE RESPECTIVELY.
THIS ISSUANCE WAS OVERSUBSCRIBED BY 3.3 TIMES. RESULTS OF
OPERATIONSNET INTEREST INCOME AFTER PROVISIONS (NII AFTER
PROVISIONS)
INTEREST INCOME REACHED PS. 4,535 MILLION IN 3Q16, 12.0% HIGHER
COMPAREDWITH 3Q15. WHEN WE CONSIDER THE INTEREST INCOME GENERATED
IN THE FIRST NINE MONTHS OF 2016 IT STOOD AT PS. 12,825 MILLION,
13.8% HIGHER COMPARED WITH 9M15, IN LINE WITH THE PERFORMANCE OF
THE PORTFOLIO DURING THIS PERIOD OF TIME.
COST OF FUNDS STOOD AT 4.94% DURING 3Q16 COMPARED TO 3.90% IN 3Q15.
INTEREST EXPENSES ROSE BY 29.3% TO PS. 212 MILLION, COMPARED WITH
PS. 164 MILLION IN 3Q15. THIS GROWTH WAS EXPLAINED BY THE INCREASE
IN THE REFERENCE RATE AND ALSO DUE TO THE FACT THAT AVERAGE
LIABILITIES USED TO FUND THE PORTFOLIO IN 3Q16 WERE 4.2% HIGHER
COMPARED TO AVERAGE LIABILITIES DURING 3Q15.
AS AFOREMENTIONED, THE COST OF FUNDS DURING 3Q16 WAS RELATIVELY
STABLE CONSIDERING THAT THE CENTRAL BANK RAISED INTEREST RATES BY
175 BPS DURING THE PAST TEN MONTH (THE 50BPS INCREASE THAT TOOK
PLACE ON SEPTEMBER 29 DID NOT IMPACT THE COST OF FUNDS FOR 3Q16).
THIS WAS POSSIBLE GIVEN THE FACT THAT THE BANK OBTAINED BETTER
CREDITSPREADS FROM THE CREDIT LINES USED IN THE PAST MONTHS. AS A
RESULT, BANCO COMPARTAMOS REPORTED NET INTEREST INCOME OF PS. 4,323
MILLION, 11.3% HIGHER THAN IN 3Q15.
PROVISIONS FOR LOAN LOSSES WERE PS. 739 MILLION DUE TO A HIGHER
PARTICIPATION OF CREDITO COMERCIANTE; CREDITO CRECE Y MEJORA AND
CREDITO INDIVIDUAL PRODUCTS IN THE PORTFOLIO DURING 3Q16, WHICH
ACCOUNTED FOR 51.0% OF THE PORTFOLIO VERSUS 49.8% IN 3Q15.NII AFTER
PROVISIONS ROSE TO PS. 3,584 MILLION, A 4.2% INCREASE COMPARED WITH
PS. 3,438 MILLION IN 3Q15.DUE TO THE AFOREMENTIONED, NIM (NET
INTEREST MARGIN) AFTER PROVISIONS (NII AFTER PROVISIONS FOR LOSSES
/ AVERAGE YIELDING ASSETS) FOR 3Q16 WAS 56.4%, COMPARED WITH 58.6%
IN 3Q15.NET OPERATING INCOME
- COMMISSIONS AND FEE INCOME REACHED PS. 233MILLION, A 25.9%
INCREASE VERSUS 3Q15. THIS LINE ITEM WAS MAINLY DRIVEN BY
COLLECTION FEES AND PENALTIES CHARGED TO CLIENTS WITH DELINQUENT
ACCOUNTS, REPRESENTING 46.5% OF INCOME, AS WELL AS COMMISSIONS FOR
SOLD VOLUNTARY LIFE INSURANCE POLICIES, WHICH ACCOUNTED FOR 48.2%.
THE REMAINING 5.3% WAS RELATED TO OTHER CONCEPTS AND FEES.
- COMMISSIONS AND FEE EXPENSES TOTALED PS. 156 MILLION, AN INCREASE
OF 45.8% COMPARED TO 3Q15. THIS LINE ITEM MAINLY REFLECTED: I)
44.7% COLLECTION AND DISBURSEMENT FEE COSTS; II) 25.8% FOR
ALTERNATIVE LOCATIONS TO PAY AND WITHDRAW LOANS FROM BANCO
COMPARTAMOS AND III) 11.4% FOR THE FREE VOLUNTARY LIFE INSURANCE
COVERAGE INCLUDED IN THE CREDITO MUJER PRODUCT AND IV) 17.1% FEES
PAID TO YASTS; AND THE REMAINDER LINKED TO ADMINISTRATIVE FEES.-
TRADING GAINS REACHED PS. 17 MILLION DURING THE QUARTER DUE TO FX
GAINS AT THE COMPARTAMOS-INTERMEX OPERATION.- OTHER INCOME/EXPENSES
REACHED A LOSS OF PS. 23 MILLION. THIS LINE ITEM REFLECTED
NON-RECURRING INCOME OR EXPENSES, WHICH FOR THE THIRD QUARTER
WEREPRIMARILY DRIVEN BY EXPENSES FOR THE RECOVERY OF DELINQUENT
ACCOUNTS AND DONATIONS.
-OPERATING EXPENSES FOR 3Q16 ROSE ONLY 1.1% WHEN COMPARED TO 3Q15,
PRIMARILY ATTRIBUTABLE TO NEW BRANCHES, SERVICE OFFICES, AND THE
IMPLEMENTATION OF OUR STRATEGIC INITIATIVES.
NET INCOME
BANCO COMPARTAMOS REPORTED NET INCOME OF PS. 919 MILLION, WHICH
COMPARED TO THE NET INCOME GENERATED IN 3Q15, REPRESENTED A 4.2%
INCREASE.
BALANCE SHEETCASH AND OTHER INVESTMENTS DECREASED BY 13.7% TO PS.
2,327 MILLION, COMPARED WITH PS. 2,697 MILLION FOR 3Q15. THIS
AMOUNT REPRESENTED THE FUNDS REQUIRED BY BANCO COMPARTAMOS TO COVER
OPERATING EXPENSES, DEBT MATURITIES AND LOAN PORTFOLIO GROWTH.
DURING 3Q16, CASH AND OTHER INVESTMENTS REPRESENTED 8.1% OF TOTAL
ASSETS, WHILE DURING 3Q15 THIS LINE ITEM REPRESENTED 9.6% OF TOTAL
ASSETS. CASH AND OTHER INVESTMENTS ARE PLACED IN SHORT-TERM
INSTRUMENTS WHERE THE COUNTERPARTY RISK IS APPROVED BY THE BOARD'S
RISK COMMITTEE.
TOTAL LOAN PORTFOLIOLOAN PORTFOLIO (PS. MILLION)THE LOAN PORTFOLIO
FROM MICROCREDIT LOANS REACHED PS. 24,604 MILLION, 12.2% HIGHER
THAN THE LOAN PORTFOLIO FROM MICROCREDIT LOANS OF PS. 21,929
MILLION REPORTED IN 3Q15. THIS GROWTH WAS DUE TO A HIGHER AVERAGE
OUTSTANDING BALANCE PER CLIENT, AND A LARGER PARTICIPATION OF
CREDITO COMERCIANTE (MERCHANT CREDIT) AND CREDITO CRECE Y MEJORA IN
THE PORTFOLIO, WHICH HAVE LARGER AVERAGE TICKET SIZES. CREDITO
COMERCIANTE NOW HAS A 9.6% LARGER CUSTOMER BASE COMPARED WITH 3Q15
(954,330 CLIENTS IN 3Q16 COMPARED WITH 870,588 DURING 3Q15).
THE AVERAGE OUTSTANDING BALANCE PER CLIENT IN 3Q16 WAS PS. 8,423,
WHICH WAS 7.1% ABOVE THE PS. 7,865 REPORTED IN 3Q15. THIS INCREASE
WAS DUE TO A HIGHER PARTICIPATION OF THE PORTFOLIO REPRESENTED BY
CREDITO COMERCIANTE AND CREDITO INDIVIDUAL (34.9% IN 3Q16 COMPARED
TO 33.2% IN 3Q15) LOANS IN THE PORTFOLIO, BOTH OF WHICH HAVE A
LARGER AVERAGE TICKET SIZES, AS WELL ASFROM A LARGER AVERAGE
OUTSTANDING BALANCE PER CLIENT IN THE CREDITO MUJER PRODUCT.
LOAN PRODUCTS & CREDIT QUALITYTHE LOAN PRODUCTS OFFERED BY
BANCO COMPARTAMOS ARE DISTRIBUTED UNDER TWO MAIN CATEGORIES (SEE
DETAIL ON PAGE 7):1. GROUP LENDING METHODOLOGY: MERCHANT CREDIT
(CREDITO COMERCIANTE) AND GROUP LOANS (CREDITO MUJER) REPRESENTED
73.5% OF THE TOTAL LOAN PORTFOLIOIN 3Q16. 2. INDIVIDUAL LENDING
METHODOLOGY: IMPROVEMENT LOANS (CRECE Y MEJORA), ADDITIONAL LOANS
(CRDITO ADICIONAL) AND PERSONAL LOANS (CREDITO INDIVIDUAL)
REPRESENTED 26.5% OF THE TOTAL LOAN PORTFOLIO IN 3Q16.
DURING 3Q16, TOTAL NPLS REACHED 3.21%, A DETERIORATION COMPARED TO
NPLS OF 2.26% REPORTED IN 3Q15, BUT A SLIGHT IMPROVEMENT COMPARED
WITH THE LEVEL REACHED IN 2Q16 WHEN IT STOOD AT 3.29%.
GROUP LOANS (CREDITO MUJER) CONTINUE TO BE BANCO COMPARTAMOS' MOST
IMPORTANT PRODUCT REPRESENTING 49.0% OF THE PORTFOLIO, WITH NPLS OF
1.57% WHICH IS AT THE SAME LEVEL REPORTED IN 2Q16 AT 1.57%, AND
WITH A DETERIORATION WHEN COMPARED WITH 1.09% REACHED IN 3Q15.
BANCO COMPARTAMOS' POLICY IS TO WRITE-OFF PAST DUE NPLS OF OVER 180
DAYS. DURING THE THIRD QUARTER, THIS FIGURE REACHED PS. 603 MILLION
OR 54.6% MORE THAN THE FIGURE REACHED IN 3Q15.
FOR 3Q16, THE COVERAGE RATIO (ALLOWANCE FOR LOAN LOSSES /
NON-PERFORMING LOANS) WAS 175.3% COMPARED WITH 199.2% IN 3Q15.
ALLOWANCE FOR LOAN LOSSES IS BASED ON THE METHODOLOGY ESTABLISHED
BY THE CNBV, WHICH REQUIRES SPECIFIC RESERVE COVERAGE FOR EACH
ORIGINATED LOAN: GROUP LOANS WITH A SOLIDARITY FIGURE; AND A
DIFFERENT COVERAGE FOR INDIVIDUAL LOANS. IT IS IMPORTANT TO
HIGHLIGHT THAT OUR METHODOLOGY ADHERES TO THERULES THAT APPLY FOR
'PERSONAL CREDIT' CATEGORY INSTEAD OF THE 'CONSUMER LOANS, NOT
REVOLVING, OTHERS' CATEGORY, DESCRIBED PREVIOUSLY.CLASSIFICATION
FOR ALLOWANCE FOR LOAN LOSSES IS IN ACCORDANCE WITH CNBV
REGULATIONS (SECTION V, ARTICLE 129, ANDPARAGRAPH II) APPLICABLE TO
CREDIT INSTITUTIONS SINCE JULY 2013 . ALLOWANCE FOR LOAN LOSSES
CONTINUED TO SUFFICIENTLY COVER NON-PERFORMING LOANS.OTHER ACCOUNTS
RECEIVABLE AND OTHER ASSETS
OTHER ACCOUNTS RECEIVABLE REACHED PS. 795 MILLION IN 3Q16, A 9.2%
HIGHER FIGURE COMPARED WITH PS. 728 MILLION IN 3Q15. PS. 564
MILLION, OR 70.9%, WERE COMPRISED OF ACCOUNTS RECEIVABLE FROM
RETAILERS, SUCH AS SUPERMARKETS AND CONVENIENCE STORES, WHICH
COLLECT CLIENT PAYMENTS AT THEIR LOCATIONS. TOTAL RECEIVABLES FROM
THESE ALTERNATIVE PAYMENT CHANNELS CONTINUE DEMONSTRATING STRONG
CUSTOMER DEMAND DUE TO THEIR CONVENIENT LOCATIONS.
FIXED ASSETS REACHED PS. 444 MILLION, BELOW THE PS. 600MILLION
REPORTED IN 3Q15. THIS LINE REPRESENTS FURNITURE & EQUIPMENT,
AMONG OTHER CONCEPTS.
OTHER ASSETS REACHED PS. 1,881 MILLION IN 3Q16, PRIMARILY
REPRESENTED BY INVESTMENTS IN SAP AND ALSO DEFERRED TAXES.
TOTAL LIABILITIESDURING 3Q16, TOTAL LIABILITIES REACHED PS. 18,294
MILLION WHICH WAS PS. 18 MILLION OR -0.1% BELOW THE PS. 18,312
MILLION REPORTED DURING 3Q15. ALL OF BANCO COMPARTAMOS' CURRENT
LIABILITIES ARE FULLY PESO-DENOMINATED; THEREFORE, THERE IS NO FX
EXPOSURE.BANCO COMPARTAMOS MAINTAINS A WELL-DIVERSIFIED FUNDING MIX
THAT PULLS FUNDS FROM VARIOUS SOURCES.CURRENTLY, IT FINANCES ASSETS
WITH THE FOLLOWING ALTERNATIVES:
I) LONG-TERM DEBT ISSUANCES: BANCO COMPARTAMOS IS A FREQUENT ISSUER
IN THE DEBTCAPITAL MARKETS. AS OF SEPTEMBER 30, 2016, IT HAD PS.
8,006 MILLION OUTSTANDING IN CERTIFICADOS BURSTILES BANCARIOS (BANK
BONDS)
II) STRONG CAPITAL BASE: 36.2% OF TOTAL ASSETS WERE FUNDED WITH
EQUITY (E.G. 26.8% ROAE FOR 3Q16).
III) CREDIT LINES WITH BANKS AND OTHER INSTITUTIONS: BANCO
COMPARTAMOS HAD PS. 7,495 MILLION IN CREDIT LINES AMONG VARIOUS
BANKING CREDITORS.
IV) DEPOSITS:FOR 3Q16, DEPOSITS COMING FROM CLIENTS STOOD AT PS.
253 MILLION WHICH WERE GENERATED WITH OVER 298 THOUSAND DEBIT
ACCOUNTS FROM THE DEPOSIT PROJECT. PS. 1,023MILLION REPRESENTED
DEPOSITS MAINLY COMING FROM GENTERA'S SUBSIDIARIES.
TOTAL STOCKHOLDERS' EQUITY
THE CAPITALIZATION RATIO WAS 26.8% COMPARED WITH 29.1% REPORTED IN
3Q15. THE CURRENT RATIO CONTINUES REFLECTING THE BANK'S STRENGTH IN
ACCORDANCE WITH LEVELS REQUIRED BY BASEL III AND IS WELL ABOVE
MEXICAN BANKING SYSTEM STANDARDS. BANCO COMPARTAMOS REPORTED
PS.8,693 MILLION IN TIER I CAPITAL AND RISK WEIGHTED ASSETS OF PS.
34,399 MILLION.
PERFORMANCE RATIOS AND METRICSRETURN ON AVERAGE EQUITY (ROAE) FOR
3Q16 WAS 36.9% COMPARED WITH 38.3% IN 3Q15. RETURN ON AVERAGE
ASSETS (ROAA) FOR 3Q16 WAS 13.0% COMPARED WITH 13.3% IN
3Q15.EFFICIENCY RATIO 1)THE EFFICIENCY RATIO FOR 3Q16 WAS 64.0%,
SLIGHTLY BELOW THE 64.6% REACHED IN 3Q15 AND WAS MAINLY
ATTRIBUTABLE TO BANCO COMPARTAMOS' STRATEGIC INITIATIVES.
COMPARTAMOS FINANCIERA (PERU)
THE FOLLOWING SECTION SETS FORTH THE NON-AUDITED FINANCIAL RESULTS
FOR THE THIRD QUARTER OF 2016 (3Q16) FOR COMPARTAMOS FINANCIERA,
GENTERA'S PERUVIAN SUBSIDIARY. ALL FIGURES ARE IN MEXICAN
PESOS.NOTE: IT IS IMPORTANT TO HIGHLIGHT THAT THE ANALYSIS AND THE
FIGURES ARE EXPRESSED IN ACCORDANCE WITH MEXICAN GENERALLY ACCEPTED
ACCOUNTINGPRINCIPLES AND CNBV (NATIONAL BANKING AND SECURITIES
COMMISSION) REGULATIONS. THESE FIGURES ARE NOT COMPARABLE TO THE
FINANCIAL STATEMENTS SUBMITTED TO THE PERUVIAN SUPERINTENDENCIA DE
BANCA, SEGUROS Y AFP (PERUVIAN BANKING, INSURANCE AND PENSION FUND
COMMISSION).FINANCIAL HIGHLIGHTS
HIGHLIGHTS FOR 3Q16:- TOTAL LOAN PORTFOLIO REACHED PS. 6,787
MILLION, 30.1% HIGHER COMPARED WITH 3Q15.- NON-PERFORMING LOANS
STOOD AT 3.66% IN 3Q16, COMPARED WITH 6.00% IN 3Q15.- ACTIVE
CLIENTS REACHED 351,373, A 34.7% INCREASE COMPARED TO 3Q15.
OGROUP LOANS (CREDITO MUJER) PRODUCT REPRESENTED 58.3% OF THE
CLIENTS SERVED IN PERU, FINALIZING THE PERIOD WITH 204,726 CLIENTS,
87.1% MORE CLIENTS SERVED THANIN 3Q15.
- COMPARTAMOS FINANCIERA REACHED A TOTAL OF 71 SERVICE OFFICES, 11
MORE OFFICES THAN IN 3Q15.
- ON AUGUST 26, 2016, COMPARTAMOS FINANCIERA ISSUED S/. 50 MILLION
IN THE PERUVIAN DEBT MARKET. THE TENOR OF THIS ISSUANCE IS ONE YEAR
WITH AN INTEREST RATE OF 6.99%. THIS ISSUANCE WAS OVERSUBSCRIBED BY
2 TIMES.
RESULTS OF OPERATIONS
NET INTEREST INCOME AFTER PROVISIONS
INTEREST INCOME GREW 38.0% COMPARED WITH 3Q15, REACHING PS. 554
MILLION. THIS INCREASE WAS ABOVE THE LOAN PORTFOLIO GROWTH, WHICH
REACHED 30.1% AT THE END OF THE QUARTER.INTEREST EXPENSES INCREASED
BY 41.2%, TO PS. 96 MILLION VERSUS 3Q15, BELOW THE 52.1% GROWTH IN
LIABILITIES USED TO FUND THE PORTFOLIO. THIS WAS POSSIBLE AS A
RESULT OF BETTER TERMS AND CONDITIONS IN CREDIT LINES. IN TERMS OF
THE COST OF FUNDS, IT STOOD AT 7.04%.PROVISIONS FOR LOAN LOSSES
REACHED PS. 95 MILLION, AN INCREASE OF 10.7% COMPARED TO PS. 86
MILLION REACHED IN 3Q15. PROVISIONS MOVED IN ACCORDANCE TO THE RISK
PROFILE OF THE PORTFOLIO.
DUE TO THE AFOREMENTIONED, NIM (NET INTEREST MARGIN) AFTER
PROVISIONS (NII / AVERAGE YIELDING ASSETS) FOR 3Q16 WAS 20.1%,
COMPARED WITH 19.3% IN 3Q15
COMPARTAMOS FINANCIERA REACHED A COVERAGE RATIOOF 173.6% FOR
3Q16.
NET OPERATING INCOME
- NET OPERATING INCOME REACHED PS. 72 MILLION, AGROWTH OF 27.8%
COMPARED WITH PS. 56 MILLION IN 3Q15.
- COMMISSIONS AND FEE INCOME DURING 3Q16 REACHED PS.25 MILLION,
13.5% HIGHER THAN THE FIGURE REACHED IN 3Q15, MAINLY AS A RESULT OF
PENALTY FEES CHARGED TO CLIENTS WITH DELINQUENT ACCOUNTS AND FEES
OBTAINED FROMTHE LIFE INSURANCE POLICIES SOLD DURING THE QUARTER.-
COMMISSIONS AND FEE EXPENSES WERE PS. 6 MILLION, A CONTRACTION OF
PS. 3 MILLION OR 35.5%, COMPARED TO PS. 9 MILLION REACHED IN 3Q15.
THIS LINE REPRESENTED MAINLY THE COLLECTION AND DISBURSEMENT FEE
COSTS CHARGED BY THIRD PARTIES.- OTHER OPERATING INCOME/EXPENSES
STOOD AT PS. 13 MILLION, AN INCREASE OF PS. 5 MILLION, 58.1%,
COMPARED TO 3Q15.
- OPERATING EXPENSES WERE PS. 323 MILLION, 52.2% HIGHER THAN IN
3Q15, DUE A LARGER INFRASTRUCTURE AT COMPARTAMOS FINANCIERA, 71
SERVICE OFFICES IN 3Q16 COMPARED WITH 60 IN 3Q15, AND A 33.1%
LARGER SALES FORCE TO ADEQUATELY SERVE CUSTOMERS IN THE GROUP
LENDING METHODOLOGY.
NET INCOME
DUE TO THE AFOREMENTIONED, COMPARTAMOS FINANCIERA REPORTED NET
INCOME OF PS. 50 MILLION DURING 3Q16, WHICH IS 16.5% HIGHER WHEN
COMPARED WITH 3Q15 WHEN IT STOOD AT PS. 43 MILLION.
COMPARTAMOS, S.A. (GUATEMALA)
THE FOLLOWINGSECTION SETS FORTH THE NON-AUDITED FINANCIAL RESULTS
FOR THE THIRD QUARTER OF 2016 (3Q16) FOR COMPARTAMOS S.A., THE
COMPANY'S GUATEMALAN SUBSIDIARY. ALL FIGURES ARE EXPRESSED IN
MEXICAN PESOS AND ARE IN ACCORDANCE WITH MEXICAN ACCOUNTING
PRINCIPLES AND REGULATIONS.
FINANCIAL HIGHLIGHTS3Q16 HIGHLIGHTS:
- TOTAL LOAN PORTFOLIOREACHED PS. 475.4 MILLION, 35.3% HIGHER WHEN
COMPARED WITH 3Q15.
- NET INCOME FOR 3Q16 STOOD AT PS. 14.3 MILLION COMPARED WITH PS.
2.1 MILLION IN 3Q15.
- NON-PERFORMING LOANS STOOD AT 4.73% IN 3Q16, COMPARED WITH 1.45%
IN 3Q15.- ACTIVE CLIENTS REACHED 80,093, A 7.4% INCREASE COMPARED
TO 3Q15.
RESULTS OF OPERATIONSNET INTEREST INCOME - NII
NET INTEREST INCOME REACHED PS. 113.0 MILLION, AN INCREASE OF PS.
43.3 MILLION, OR 62.0% HIGHER COMPARED WITH PS. 69.7 MILLION IN
3Q15. THIS WAS THE RESULT OF SOLID PORTFOLIO GROWTH.AS PER PREVIOUS
DISCUSSIONS, A PERCENTAGE OF COMPARTAMOS S.A.'S TOTAL LOAN
PORTFOLIO WAS PROVISIONED FOR THE PREVENTION OF ASSET
DETERIORATION. IN 3Q16, PROVISIONS REACHED PS. 12.9 MILLION.
NET OPERATING INCOMECOMMISSIONS AND FEE EXPENSES, INCLUDING
COLLECTIONS, WERE PS. 1.7 MILLION. THIS LINE ITEM REPRESENTED THE
FEES THAT COMPARTAMOS PAID TOTHIRD PARTIES RELATED TO THE
COLLECTION AND DISBURSEMENT OF ITS CREDITS.
OPERATING EXPENSES WERE PS. 80.7 MILLION, AN INCREASE OF PS.17.8
MILLION, OR 28.2% WHEN COMPARED TO 3Q15. OPERATING EXPENSES WERE
THE RESULT OF A LARGER NUMBER OF SERVICE OFFICES, ENDING THE 3Q16
WITH 43 VERSUS 31 IN 3Q15, AND A LARGER SALES FORCE WHICH GREW
40.8% COMPARED WITH 3Q15.
NET INCOMECOMPARTAMOS REPORTED NET INCOME OF PS. 14.3 MILLION
DURING THE THIRD QUARTER COMPARED WITH PS. 2.1 MILLION REACHED IN
3Q15.***
ABOUT GENTERAGENTERA, S.A.B. DE C.V. (FORMERLY COMPARTAMOS, S.A.B.
DE C.V.) IS A HOLDING COMPANY WHOSE PRIMARY OBJECTIVE IS TO
PROMOTE, ORGANIZE AND MANAGE COMPANIES, DOMESTIC AND INTERNATIONAL,
THAT ARE SUBJECT TO ITS INVESTMENT POLICIES. GENTERA WAS
ESTABLISHED IN 2010 AND IS HEADQUARTERED IN MEXICO. ITS SHARES
BEGAN TRADING ONTHE MEXICAN STOCK EXCHANGE ON DECEMBER 24, 2010
UNDER THE TICKER SYMBOL COMPARC*. ON JANUARY 2, 2014, THE TICKER
SYMBOL WAS CHANGED TO GENTERA*. NOTE ON FORWARD-LOOKING
STATEMENTS
THIS PRESS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS. THESE
STATEMENTS ARE STATEMENTS THAT ARE NOT HISTORICAL FACTS, AND ARE
BASED ON MANAGEMENT'S CURRENT VIEW AND ESTIMATES OF FUTURE ECONOMIC
CIRCUMSTANCES, INDUSTRY CONDITIONS, COMPANY PERFORMANCE AND
FINANCIAL RESULTS. THE WORDS "ANTICIPATES", "BELIEVES",
"ESTIMATES", "EXPECTS", "PLANS" AND SIMILAR EXPRESSIONS, AS THEY
RELATE TO THE COMPANY, ARE INTENDED TO IDENTIFY FORWARD-LOOKING
STATEMENTS. STATEMENTS REGARDING THE DECLARATION OR PAYMENT OF
DIVIDENDS, THE IMPLEMENTATION OF PRINCIPAL OPERATING AND FINANCING
STRATEGIES AND CAPITAL EXPENDITURE PLANS, THE DIRECTION OF FUTURE
OPERATIONS AND THE FACTORS OR TRENDS AFFECTING FINANCIAL CONDITION,
LIQUIDITY OR RESULTS OFOPERATIONS ARE EXAMPLES OF FORWARD-LOOKING
STATEMENTS. SUCH STATEMENTS REFLECT THE CURRENT VIEWS OF MANAGEMENT
AND ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES. THERE IS NO
GUARANTEE THAT THE EXPECTED EVENTS, TRENDS OR RESULTS WILL ACTUALLY
OCCUR. THE STATEMENTS ARE BASED ON MANY ASSUMPTIONS AND FACTORS,
INCLUDING GENERAL ECONOMIC AND MARKET CONDITIONS, INDUSTRY
CONDITIONS, AND OPERATING FACTORS. ANY CHANGES IN SUCH ASSUMPTIONS
OR FACTORS COULD CAUSE ACTUAL RESULTSTO DIFFER MATERIALLY FROM
CURRENT EXPECTATIONS.