GENTERA S.A.B. DE C.V. ("GENTERA" OR "THE COMPANY") (BMV: GENTERA*) ANNOUNCED
26 Febrero 2018 - 03:25PM
BMV General Information
GENTERAREPORTS 4Q17 RESULTS
MEXICO CITY, MEXICO- FEBRUARY 26, 2018 - GENTERA S.A.B. DE C.V.
("GENTERA" OR "THE COMPANY") (BMV: GENTERA*) ANNOUNCED TODAY
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FOURTHQUARTER ENDED
DECEMBER 31, 2017. ALL FIGURES WERE PREPARED IN ACCORDANCE WITH
REQUIREMENTS FROM THE NATIONAL BANKING AND SECURITIES COMMISSION
(CNBV) AND ARE EXPRESSED IN NOMINAL MEXICAN PESOS (PS.)
4Q17 AND FISCAL YEAR 2017 HIGHLIGHTS:
- TOTAL LOAN PORTFOLIO REACHED PS. 32,074 MILLION, A 4.3%
CONTRACTION COMPARED WITH 4Q16. LOAN PORTFOLIO PER SUBSIDIARY WAS
DISTRIBUTED AS FOLLOWS: - BANCO COMPARTAMOS S.A. I.B.M.(MEXICO)
(BANCO COMPARTAMOS) REACHED PS. 21,908 MILLION, A 12.6% CONTRACTION
VERSUS THE FIGURE RECORDED IN 4Q16.
- COMPARTAMOS FINANCIERA (PERU) STOOD AT PS. 9,587 MILLION, A 21.8%
INCREASE VS. 4Q16; AND,
- COMPARTAMOS S.A. (GUATEMALA) WAS PS. 580 MILLION, 1.3% HIGHER
COMPARED TO 4Q16.
- WITH OVER 1.6 MILLION DEBIT ACCOUNTS, DEPOSITS FROM CLIENTS IN
BANCO COMPARTAMOS STOOD AT PS. 1,760 MILLION, WHICH WERE GENERATED
FROM DEMAND AND TIME DEPOSITS, GROWING MORE THAN 3 TIMES COMPARED
TO THEPS. 540 MILLION REACHED AT THE END OF 4Q16.
- NET INCOME FOR 4Q17 WAS PS. 375 MILLION, A 30.6% CONTRACTION
COMPARED TO THE NET INCOME OF PS. 540 MILLION ACHIEVED IN 4Q16. FOR
THE FULL YEAR 2017 NET INCOME STOOD AT PS. 2,937 MILLION A 13.9%
CONTRACTION. EARNINGS PER SHARE (EPS) IN 4Q17 STOOD AT $0.23, AND
FOR THE FULL YEAR WAS $1.81.
- NET INTEREST INCOME FOR 4Q17 WAS PS. 4,905 MILLION, A
2.1%CONTRACTION COMPARED TO THE SAME PERIOD LAST YEAR, WHILE NIM
STOOD AT 54.1%, COMPARED TO 54.3% IN 4Q16.- ROE STOOD AT 8.9%,
COMPARED TO 13.8% DURING 4Q16. FOR THE FULL YEAR PERIOD, IT STOOD
AT 17.7% COMPARED TO 22.8% IN 2016.- ROA REACHED 3.5%, COMPARED TO
5.2% IN 4Q16. FOR THE FULL YEAR PERIOD, IT STOOD AT 7.0% COMPARED
TO 8.6% IN 2016.- NON-PERFORMING LOANS (NPLS) FOR 4Q17 WERE 3.26%,
COMPARED TO 4.22% IN 4Q16.
-EFFICIENCY RATIO FOR 4Q17 WAS 89.2%, COMPARED TO 80.1% REPORTED IN
4Q16. FOR FULL YEAR 2017 WAS 75.9% COMPARED TO 69.4% IN 2016.
FINANCIAL RESULTS AND RATIOS
1) IN 4Q17, 3,027,179 CREDIT CLIENTS AND 435,653 CLIENTS FROM
SAVINGS, REMITTANCES AND INSURANCE PRODUCTS.
PORTFOLIO ANDNET INCOME ARE EXPRESSED IN MILLION (MEXICAN
PESOS)
IN THIS TABLE EMPLOYEES IN BANCO COMPARTAMOS INCLUDE EMPLOYEES FROM
ATERNA, YASTAS AND INTERMEX.
** SOME SERVICE OFFICES IN MEXICO ARE BEING TRANSFORMED INTO
BRANCHES. 103 BRANCHES ARE INSIDE A SERVICE OFFICE (SAME
LOCATION)
COMMENTS FROM MR. ENRIQUE MAJS, GENTERA'S CEO:
GENTERA CONCLUDED THE YEAR SERVING OVER 3.4 MILLION CLIENTS,
THROUGH A MORE SOLID NETWORK WHICH INCLUDES 268 BRANCHES IN MEXICO,
AND WITH A STAFF OF OVER 22 THOUSAND EMPLOYEES DISTRIBUTED
THROUGHOUT MEXICO, PERU AND GUATEMALA.
2017 REPRESENTED ONE OF THE MORE CHALLENGING YEARS FOR THE COMPANY,
IN WHICH GENTERA'S FINANCIAL SUBSIDIARIES EXPERIENCED A CONTRACTION
IN ITS CREDIT PORTFOLIO; HOWEVER, THE GROUP ACHIEVED STRONG
PROGRESS IN OTHER STRATEGIC AREAS SUCH AS OUR DEPOSIT PROGRAM IN
MEXICO WHICH REACHED MORE THAN 1.6 MILLION DEBIT ACCOUNTS, A KEY
ELEMENT IN FINANCIAL INCLUSION AND BANKING MORE CLIENTS AND
BUILDING LONG TERM RELATIONSHIPS. ATERNA CONCLUDED THE YEAR WITH
MORE THAN 4.8 MILLION ACTIVE LIFE INSURANCE POLICIES, ALLOCATING
MORE THAN 18 MILLION POLICIES DURING THE FULL YEAR; YASTAS RECORDED
IN THEYEAR 2017 MORE THAN 7.3 MILLION FINANCIAL TRANSACTIONS, WHICH
REPRESENTED A 28% GROWTH COMPARED TO 2016; AND INTERMEX, PROCESSED
OVER 23 THOUSAND MILLION PESOSIN REMITTANCES PAYMENTS DURING
2017.
OUR INNOVATION LAB, FIINLAB, ACHIEVED VERY RELEVANT ALLIANCES WITH
INNOVATION HUBS AND STARTUPS THAT SHARE OUR MISSION. WE BELIEVE
THAT THIS WILL KEEP HELPING GENTERA TO BETTER SERVE THE CURRENT AND
FUTURE FINANCIAL NEEDS OF OUR CLIENTS.
AT GENTERA WE ARE SURE THAT WITH A MOTIVATED TEAM FOCUSED
ONPROVIDING AN EXCELLENT SERVICE TO CLIENTS, WE WILL OVERCOME THE
CHALLENGES FACED IN THE PAST MONTHS. WE ARE VERY CLEAR ABOUT WHAT
WE NEED TO DO IN ORDER TO ACHIEVE OUR ASPIRATION TO SERVE MORE
CLIENTS AND PROVIDE BETTER OPPORTUNITIES THROUGH FINANCIAL
SERVICES. WITH NO DOUBT, THE WORK IN 2018 WILL HELP US TO BUILD A
MORE SOLID FOUNDATION FOR A BETTER FUTURE FOR OUR CLIENTS AND
STAKEHOLDERS.
4Q17 ANALYSIS & RESULTS OF OPERATIONS* PORTFOLIO AND NET INCOME
ARE EXPRESSED IN MILLION (MEXICAN PESOS)** IN THIS TABLE EMPLOYEES
IN BANCO COMPARTAMOS INCLUDE EMPLOYEES FROM ATERNA, YASTAS AND
INTERMEX.COMPARTAMOS FINANCIERA (PERU) IS REPORTED UNDER MEXICAN
GAAP (ALL FIGURES IN MILLION PESOS).
INCOMESTATEMENT
THE FOLLOWING FINANCIAL RESULTS ANALYSIS IS DONE WITH CONSOLIDATED
FIGURES. THE PERCENTAGE COMPARISONS ARE CALCULATED FOR THE FOURTH
QUARTER 2017 VERSUS THE FOURTH QUARTER 2016, UNLESS OTHERWISE
SPECIFIED. THE READER MUST TAKE INTO CONSIDERATION THEFX MOVEMENTS
IN THE COMPARISON PERIODS.
INTEREST INCOME IN 4Q17 WAS PS. 5,257 MILLION A 1.9% CONTRACTION
COMPARED TO 4Q16, DRIVEN BY THECONTRACTION EXPERIENCED IN THE
PORTFOLIO DURING THE PERIOD DUE TO THE LOST OF CLIENTS IN THE
MEXICAN SUBSIDIARY. THE INTEREST INCOME GENERATED IN THE
FULL-YEAR2017 WAS PS. 20,889, 4.4% HIGHER THAN THE INTEREST INCOME
GENERATED IN 2016.BANCO COMPARTAMOS REPRESENTED MOST OF GENTERA'S
CURRENT PORTFOLIO AND INTEREST INCOME, WITH 68.3% AND
82.3%,RESPECTIVELY, COMPARED TO 2016 WHEN IT REPRESENTED 74.8% AND
85.8%.
GENTERA'S THREE MAIN SUBSIDIARIES GRANT LOANS WITH DIFFERENT
AVERAGE OUTSTANDING BALANCES PER CLIENT (PS. 8,916 FOR BANCO
COMPARTAMOS, PS. 20,077 FOR COMPARTAMOS FINANCIERA AND PS. 6,259
FOR COMPARTAMOS GUATEMALA). THESE VARIATIONS IN TICKET SIZE ARE
RELATED TO THE SHARE OF THE GROUP LENDING OR INDIVIDUAL LENDING
PRODUCTS IN THEIR RESPECTIVE PORTFOLIO.THE YIELD FOR GENTERA'S
PORTFOLIO STOOD AT 66.2%.
GENTERA'S INTEREST EXPENSE STOOD AT PS. 352 MILLION, OR A 1.1%
GROWTH COMPARED TO THE FIGURE GENERATED IN 4Q16. THIS SLIGHT
INCREASE IS DUE TO THE CONTRACTION EXPERIENCED IN THE MEXICAN
SUBSIDIARY AND THE SOLID DYNAMICS PRESENTED IN COMPARTAMOS
FINANCIERA - PERU, WORTH HIGHLIGHTING IS THAT THE PERUVIAN
SUBSIDIARY IS FUNDING THE BUSINESS WITH BETTER INTEREST RATES
COMPARED TO THE PAST. - THE FUNDING COST OF BANCO COMPARTAMOS IN
MEXICO, WHICH INCLUDES WHOLESALE FUNDING AND DEPOSITS, STOOD AT
7.1% IN 4Q17 COMPARED TO 5.6% IN 4Q16. INTEREST EXPENSES AT THIS
SUBSIDIARY CONTRACTED 5.2% TO PS. 235 MILLION, COMPARED TO PS. 248
MILLION IN 4Q16. AT THE END OF THE QUARTER 37.1% OF BANCO
COMPARTAMOS LIABILITIES (CONSIDERING INTERBANK LIABILITIES AND
LONG-TERM DEBT ISSUANCES) WERE CONTRACTED AT A FIXED RATE.-
COMPARTAMOS FINANCIERA IN PERU INCREASED ITS INTEREST EXPENSES BY
21.0% TO PS. 126 MILLION VERSUS 4Q16, WHICH IMPLIES A SMALLER
GROWTH COMPAREDTO THE 42.3% GROWTH MARK IN THE LIABILITIES USED TO
FUND THE PORTFOLIO. THIS WAS POSSIBLE THANKS TO BETTER TERMS AND
CONDITIONS IN CREDIT LINES AND IMPROVEMENTSIN THE REFERENCE
INTEREST RATE, WHICH AT THE END OF SEPTEMBER 2017 WAS AT 3.50%
COMPARED TO 4.25% AT THE END OF SEPTEMBER 2016. COST OF FUNDING
STOOD AT 5.9 %COMPARED TO 6.9% IN 4Q16.
GENTERA'S NET INTEREST MARGIN (NIM) FOR THE FOURTH QUARTER 2017
REACHED 54.1%, A SIMILAR LEVEL COMPARED TO THE 54.3% ACHIEVED IN
4Q16, AND 1.0 POINT BEHIND THE 55.1% REACHED IN 3Q16. CONSIDERING
THE FULL YEAR 2017, NIM STOOD AT 53.8%, SLIGHTLY BELOW THE 54.5%
REACHED DURING 2016. NIM DURING 2017 WAS SLIGHTLY BELOW TO THE ONE
REACHED IN 2016, DUE TO A LARGER PARTICIPATION OF COMPARTAMOS
FINANCIERA (PERUVIAN SUBSIDIARY) IN THE CONSOLIDATED PORTFOLIO.
PROVISIONS FOR LOAN LOSSES REACHED PS. 970 MILLION DURING THE
QUARTER. THIS AMOUNT WAS PS. 51 MILLION, OR 5.0% SMALLER COMPARED
TO 4Q16. THIS EFFECT IS IN LINE WITH NEW CNBV REGULATIONS AND
METHODOLOGIES, REFLECTING THE LEVEL REQUIRED FOR EACH PRODUCT.NII
AFTER PROVISIONS ROSE TO PS. 3,935 MILLION, A SLIGHT CONTRACTION OF
1.3% COMPARED TO PS. 3,988 MILLION IN 4Q16. AS PREVIOUSLY
MENTIONED, THE MEXICAN SUBSIDIARY, BANCO COMPARTAMOS, IMPLEMENTED
AT THE END OF 4Q16 A GROWTH CONTROL STRATEGY IN ITS CREDIT
PORTFOLIO ALONG WITH OTHER INITIATIVES THAT UNFORTUNATELY IMPACTED
CUSTOMER RETENTION AND THE POTENTIAL GROWTH OF THE PORTFOLIO AND,
THUS, THE GENERATION OF INTEREST INCOME TO A GREATER EXTENT.
SINCE 4Q17 GENTERA IS TAKING DIFFERENT ACTIONS TO REVERT THOSE
IMPACTS IN THE FUTURE.NIM AFTER PROVISIONS (NII AFTER PROVISIONS
FOR LOSSES / AVERAGE YIELDING ASSETS) FOR 4Q17 WAS 43.4%, COMPARED
TO 43.2%IN 4Q16.
THE NET EFFECT BETWEEN COMMISSIONS CHARGED AND COMMISSIONS PAID IN
4Q17 REACHED A TOTAL OF PS. 282 MILLION, AN INCREASE OFPS. 48
MILLION, OR 20.5%, COMPARED TO THE NET EFFECT OBTAINED IN 4Q16 OF
PS. 234 MILLION, AND IS EXPLAINED AS FOLLOWS:COMMISSIONS AND FEE
INCOME DURING THE QUARTER CONTRACTED 6.0% TO PS. 379 MILLION,
COMPARED TO 4Q16. 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 DURING THE QUARTER
CONTRACTED 42.6%,OR PS. 72 MILLION, TO PS. 97 MILLION COMPARED TO
4Q16. THE MAIN REASON FOR THIS CONTRACTION IN EXPENSES HAS TO DO
WITH THE FACT THAT A GREATER NUMBER OF BANCOCOMPARTAMOS'
DISBURSEMENTS AND COLLECTION OPERATIONS OF ITS CREDITS ARE BEING
EXECUTED IN GENTERA'S CHANNELS, REPRESENTING, AT THE END OF
DECEMBER '17, 81% AND47% RESPECTIVELY. THIS LINE ITEM INCLUDED: I)
FEES CHARGED BY THIRD PARTIES TO BANCO COMPARTAMOS FOR THE USE OF
THEIR NETWORKS; AS WELL AS, II) FEES RELATED TOTHE OPERATION OF
YASTAS AND INTERMEX. THE FOLLOWING TABLE SHOWS CONSOLIDATED NUMBERS
OF THE DIFFERENT SUBSIDIARIES.OTHER OPERATING INCOME/EXPENSES
DURING 4Q17 REPRESENTED AN EXPENSE OF PS. (57) MILLION. THIS ITEM
REFLECTED NON-RECURRING INCOME OR EXPENSES WHICH FOR THE FOURTH
QUARTER WERE PRIMARILY DRIVEN BY LOSSES IN FURNITURE &
EQUIPMENT SALES, LOSSES IN ASSOCIATED COMPANIES AND BY
DONATIONS.
OPERATING EXPENSES REACHED PS. 3,712 MILLION, A 12.7% INCREASE
VERSUS THE PS. 3,294 MILLION REACHED IN 4Q16. DURING DECEMBER 2017
GENTERA BOOKED A PROVISION OF PS. 140 MILLION; THIS PROVISION WAS
LINKED TO THE RESTRUCTURING PROCESS THAT THE COMPANY PLANNED TO
UNDERTAKE IN THE FIRST MONTHS OF 2018.
GENTERA'S SUBSIDIARIES JOINTLY TOTALED 22,318 EMPLOYEES, AN
INCREASE OF 5.4% COMPARED TO 4Q16, DUE TOTHE GROWTH IN NUMBER OF
EMPLOYEES IN THE PERUVIAN AND GUATEMALAN SUBSIDIARIES. THE NEW
HIRES ARE REQUIRED TO SERVE CURRENT AND FUTURE CUSTOMERS.- SALARIES
AND BENEFITS REPRESENTED APPROXIMATELY PS. 2,157 MILLION, OR 58.1%
OF TOTAL OPERATING EXPENSES.- DURING 4Q17, GENTERA HAD 483 SERVICE
OFFICES AND 268 BRANCHES IN MEXICO, 79 SERVICE OFFICES IN PERU AND
60 IN GUATEMALA FOR A TOTAL OF 622 SERVICE OFFICES AND 268
BRANCHES. TOGETHER, THESE SERVICE OFFICES AND BRANCHES (SO&B)
REPRESENTED PS. 659 MILLION, OR 17.8% OF OPERATING EXPENSES. THE
CURRENT NUMBER OF SERVICE OFFICES AND BRANCHES WAS 8.5% LARGER THAN
THE 820 SERVICE OFFICES AND BRANCHES REPORTED IN 4Q16, TOTALING
890.- OTHER STRATEGIC INITIATIVES AND ADVISORY SERVICES, SUCH AS:
I) INVESTMENTS IN TECHNOLOGY; THE SAP PLATFORM AND THE ERP;II) THE
DEPOSIT/SAVINGS PROGRAM; AND, III) YASTAS AND FIINLAB, IV)
STRATEGIES TO IMPROVE CUSTOMER EXPERIENCE, AMONG OTHERS, JOINTLY
REPRESENTED PS. 660.4 MILLION OR 17.8% OF OPERATING EXPENSES DURING
4Q17.
- MARKETING CAMPAIGNS REPRESENTED PS. 235.9 MILLION,OR 6.4% OF
OPERATING EXPENSES, DURING THE FOURTH QUARTER, INCLUDING THE
INVESTMENT ASSOCIATED WITH THE LOYALTY PROGRAM IN BANCO COMPARTAMOS
WHICH TOTALED PS. 138.7 MILLION IN THIS QUARTER.
PARTICIPATION IN NET INCOME FROM NON-CONSOLIDATED
SUBSIDIARIESREPRESENTED A PS. (5) MILLION LOSS DURING THE QUARTER,
COMPARED TO A PS. (16) MILLION LOSS IN 4Q16. THIS LINE ITEM
REFLECTS GENTERA'S MINORITY CONTRIBUTION IN COMPANIES IN WHICH IT
HAS BEEN INVESTING.
FOR THE FOURTH QUARTER OF 2017, NET INCOME AMOUNTED TO PS. 375
MILLION,WHICH REPRESENTS A 30.6% CONTRACTION COMPARED TO THE PS.
540 MILLION NET INCOME RECORDED IN 4Q16. FOR THIS FOURTH QUARTER
BANCO COMPARTAMOS REPRESENTED 68.0% OF GENTERA'S TOTAL NET INCOME,
WHEREAS COMPARTAMOS FINANCIERA IN PERU REPRESENTED 13.1%, AND THE
OTHER SUBSIDIARIES GENERATED THE REMAINING 18.9%.
GENTERA CONCLUDED THIS YEAR WITH AN ACCUMULATED NET INCOME OF PS.
2,937 MILLION, REPRESENTING A 13.9% CONTRACTION COMPARED TO THE
ACCUMULATED NET INCOME REACHEDAT THE END OF 2016, WHEN IT STOOD AT
PS. 3,410 MILLION.
BALANCE SHEET
CASH ANDOTHER INVESTMENTS STOOD AT PS. 6,236 MILLION DURING THE
FOURTH QUARTER OF 2017. THIS LEVEL OF LIQUIDITY ENABLES US TO COVER
OPERATING EXPENSE GROWTH, DEBT AMORTIZATIONS AND EXPECTED PORTFOLIO
GROWTH FOR THE FOLLOWING 30 DAYS. IT IS IMPORTANT TO NOTE THAT
43.2% OF THE CASH ON THE BALANCE SHEET CORRESPONDED TO BANCO
COMPARTAMOS, WITH PS. 2,695 MILLION HELD IN HIGHLY LIQUID ASSETS.
THE REMAINDER IS HELD IN GENTERA ACCOUNTS IN ITS VARIOUS
SUBSIDIARIES.TOTAL LOAN PORTFOLIO REACHED PS. 32,074 MILLION IN
4Q17, A 4.3% CONTRACTION COMPARED TO THE FIGURE REPORTED IN 4Q16.
THE LOAN PORTFOLIO WAS DISTRIBUTED AS FOLLOWS: 68.3% AT BANCO
COMPARTAMOS, 29.9% AT COMPARTAMOS FINANCIERA IN PERU AND 1.8% AT
COMPARTAMOS IN GUATEMALA.
AS WE HAVE COMMUNICATED IN DIFFERENT CONFERENCES AND QUARTERLY
REPORTS, DURING 2017 BANCO COMPARTAMOS HAD DIFFERENT CHALLENGES
WHICH IMPACTED CLIENT RETENTION AND AT SOME EXTENT THE ATTRACTION
OF NEW CLIENTS, AND AS A CONSEQUENCE IT HAD AN IMPACT IN THE GROWTH
OF THE PORTFOLIO. SINCE 4Q17 BANCO COMPARTAMOS TOOK ACTIONS IN
ORDER TO IMPROVE CUSTOMER EXPERIENCE, HIRING NEW LOAN OFFICERS AND
MAKING ADJUSTMENTS TO THE LOYALTY PROGRAM, AMONG MANY OTHER
INITIATIVES. CREDIT QUALITY (NON-PERFORMING LOANS / TOTAL
PORTFOLIO)
CONSOLIDATED NON-PERFORMING LOANS REACHED 3.26% IN 4Q17, THIS LEVEL
DUE TO THE DECISIONS OF WRITING-OFF IN ADVANCE A PORTION OF CREDITO
COMERCIANTE'S PORTFOLIO, AS EXPLAINED IN BANCO COMPARTAMOS' SECTION
INCLUDED IN THIS REPORT. THE NPL RECORDED IN 3Q17 STOOD AT 4.18%
AND 4.22% IN 4Q16.
DUE TO THE DIFFERENT RISK PROFILE PRODUCTS IN THE PORTFOLIO AND TO
THE EFFECTS OF MORE COMPETITION IN CERTAIN REGIONS OF MEXICO NPLS
SHOULD BE MOVING IN SIMILAR LEVELS TO THE RATIOS REACHED IN PAST
MONTHS. IT IS IMPORTANT TO MENTION THAT BANCO COMPARTAMOS' POLICY
IS TO WRITE-OFF LOANS THAT ARE PAST DUE AFTER 180 DAYS.PERFORMANCE
RATIOS AND METRICSTHE 4Q17 COVERAGE RATIO WAS 215.3%, WHICH IS WELL
IN ACCORDANCE WITH THE PORTFOLIO MIX AND MEXICAN FINANCIAL
REGULATIONS.GOODWILL AMOUNTED TO PS. 969 MILLION AND WAS RELATED TO
THE ACQUISITION OF COMPARTAMOS FINANCIERA AND INTERMEX, WHICH WAS
RECORDED AS AN ASSET.ROAE/ROAADURING 4Q17, GENTERA REACHED A RETURN
ON AVERAGE EQUITY (ROAE) OF 8.9%, COMPARED TO 13.8% IN 4Q16. RETURN
ON AVERAGE ASSETS (ROAA) FOR 4Q17 WAS 3.5%, COMPAREDTO 5.2% IN
4Q16.
ROAE DURING 2017 WAS 17.7%, AND ROAA FOR THE SAME PERIOD WAS 7.0%,
COMPARED TO 22.8%AND 8.6% IN 2016 RESPECTIVELY.
OTHER 4Q17 HIGHLIGHTS:
- YASTASRECORDED APPROXIMATELY 1.9 MILLION FINANCIAL TRANSACTIONS
DURING THE QUARTER, 12.4% HIGHER THAN THOSE EXECUTED IN 4Q16.
- ATERNA ENDED THE QUARTER WITH 4.8 MILLION ACTIVE LIFE INSURANCE
POLICIES THROUGHOUT ITS OPERATIONS IN MEXICO, PERU AND
GUATEMALA.
- INTERMEX WITHMORE THAN 2.4 THOUSAND AFFILIATES PROCESSED MORE
THAN PS. 6,000 MILLION IN REMITTANCES PAYMENTS.
- AT THE END OF THEFOURTH QUARTER, GENTERA REPURCHASED 6,565,000
SHARES THROUGH THE COMPANY'S STOCK BUYBACK PROGRAM ESTABLISHED ON
APRIL 20, 2017. SHARES OUTSTANDING AS OF DECEMBER 31, 2017 AMOUNTED
TO 1,617,986,415
- DURING 2017, FUNDACIN GENTERA MADE 81 ALLIANCES BENEFITING MORE
THAN 143 THOUSAND PEOPLE WITH EDUCATIONAL OPPORTUNITIES, SUPPORT IN
CONTINGENCIES AND VOLUNTEER ACTIONS. 61% OF GENTERA'S EMPLOYEES
PARTICIPATED IN AT LEAST ONE VOLUNTEER ACTIVITY; THROUGH THIS
EFFORT, MORE THAN 58,000 HOURS WERE DEVOTED IN DIFFERENT
ACTIVITIES, BENEFITING MORE THAN 70,000 PEOPLE; AND MORE THAN $ 8.8
MILLION PESOS WERE GRANTED TO 49 ORGANIZATIONS FOR EDUCATION
PROJECTS.
GENTERA
CONSOLIDATED INCOME STATEMENTFOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER 31, 2017 AND 2016
(IN MILLIONS OF MEXICAN PESOS)GENTERACONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016(IN MILLIONS OF MEXICAN PESOS)THE
FOLLOWING SECTION SETS FORTH THE AUDITED FINANCIAL RESULTSFOR THE
FOURTH QUARTER OF 2017 (4Q17) FOR BANCO COMPARTAMOS, S.A. I.B.M.
("BANCO COMPARTAMOS" OR "THE BANK"), WHICH IS GENTERA'S MAIN
SUBSIDIARY AND IS LOCATEDIN MEXICO. ALL FIGURES ARE EXPRESSED IN
MEXICAN PESOS IN ACCORDANCE WITH THE CNBV REGULATIONS APPLICABLE TO
CREDIT INSTITUTIONS AND MAY VARY DUE TO ROUNDING.FINANCIAL
HIGHLIGHTSPORTFOLIO AND NET INCOME ARE EXPRESSED IN MILLIONS OF
MEXICAN PESOS.
*SOME OF THE SERVICE OFFICES TRANSFORMED INTO BRANCHES. 103
BRANCHES ARE INSIDE A SERVICE OFFICE (SAME LOCATION)
4Q17HIGHLIGHTS:
- TOTAL LOAN PORTFOLIO REACHED PS. 21,908 MILLION, A 12.6%
CONTRACTION COMPARED TO THE LOAN PORTFOLIO REACHED IN 4Q16.
- NON-PERFORMING LOANS STOOD AT 3.28% IN 4Q17, COMPARED TO 4.49% IN
4Q16. - NET INCOME FOR 4Q17 REACHED PS. 255 MILLION, A CONTRACTION
COMPARED TO THE PS. 546 MILLIONIN 4Q16. FOR THE FULL YEAR 2017, IT
STOOD AT PS. 2,385 MILLION COMPARED TO PS. 3,119 MILLION IN
2016.
- CAPITALIZATION RATIO STOOD AT 36.9%.
- ROA WAS 3.7%, COMPARED TO 7.3% IN 4Q16, WHILE ROE WAS 8.7%,
COMPARED TO 20.5% IN 4Q16.RESULTS OF OPERATIONS
INTEREST INCOME REACHED PS. 4,324 MILLION IN 4Q17, 5.9% LESS THAN
4Q16, HOWEVER, NOT IMPACTED IN THE SAME PROPORTION AS THE
CONTRACTION IN THE LOAN PORTFOLIO.THE FUNDING COST, WHICH INCLUDES
LIABILITIES AND DEPOSITS FROM THE PUBLIC, STOOD AT 7.1% IN 4Q17
COMPARED TO 5.6% IN 4Q16. INTEREST EXPENSES CONTRACTED 5.2% TO PS.
235 MILLION, COMPARED TO PS. 248 MILLION IN 4Q16. THIS CONTRACTION
IS EXPLAINED BY THE REDUCTION IN THE LIABILITIES USED TO FUND THE
PORTFOLIO AND DUE TO A LARGER PARTICIPATION OF CLIENT'S DEPOSITS IN
THE FUNDING STRUCTURE. IT IS WORTH HIGHLIGHTING THAT AT THE END OF
THE QUARTER, 37.1% OF THE COMPANY'S LIABILITIES WERE CONTRACTED AT
FIXED RATE.
AS A RESULT OF THE AFOREMENTIONED, BANCO COMPARTAMOS REPORTED A NET
INTEREST INCOME OF PS. 4,089 MILLION, A 5.9% CONTRACTION COMPARED
TO 4Q16.
PROVISIONS FOR LOAN LOSSES WERE PS. 835 MILLION, DRIVEN BY THE
CONTRIBUTION OF CREDITO COMERCIANTE; CREDITO CRECE Y MEJORA AND
CREDITO INDIVIDUAL PRODUCTS IN THE PORTFOLIO DURING 4Q17, WHICH
ACCOUNTED FOR 47.7% OFTHE PORTFOLIO. NII AFTER PROVISIONS ROSE TO
PS. 3,254 MILLION, A 5.8% CONTRACTION COMPARED TO PS. 3,456 MILLION
IN 4Q16.NIM (NET INTEREST MARGIN) AFTER PROVISIONS (NII AFTER
PROVISIONS FOR LOSSES / AVERAGE YIELDING ASSETS) FOR 4Q17 WAS
54.1%, COMPARED TO 50.3% IN4Q16. THIS RATIO SHOWED IMPROVEMENTS
WHEN COMPARED TO THE 4Q16, AND WERE ATTRIBUTED TO THE RE-PRICING
STRATEGY THAT STARTED IN 1Q17, WHICH HAD THE INTENTION TOREFLECT
THE HIGHER COST OF RISK AND FUNDING COSTS.
NET OPERATING INCOME- COMMISSIONS AND FEE INCOME REACHED PS. 238
MILLION, A 2.5% CONTRACTION VERSUS 4Q16. THIS LINE ITEM REFLECTED
THE COLLECTION FEES AND PENALTIES CHARGEDTO CLIENTS WITH DELINQUENT
ACCOUNTS, REPRESENTING 33.6% OF FEE INCOME, AS WELL AS SALES
COMMISSIONS FOR VOLUNTARY LIFE INSURANCE POLICIES, WHICH ACCOUNTED
FOR60.4%. THE REMAINING 6.0% WAS RELATED TO OTHER CONCEPTS AND
FEES.
- COMMISSIONS AND FEE EXPENSES TOTALED PS. 113 MILLION,
REPRESENTING A 25.2% DECREASE WHEN COMPARED TO 4Q16. THIS LINE ITEM
MAINLY REFLECTED: I) 22.9% COLLECTION AND DISBURSEMENT FEE COSTS;
II) 32.7% FOR ALTERNATIVE LOCATIONS TO PAY AND WITHDRAW LOANS FROM
BANCO COMPARTAMOS; III) 12.0% FOR THE FREE VOLUNTARY LIFE INSURANCE
COVERAGE INCLUDED IN THE CREDITO MUJER PRODUCT; AND IV) 32.4% FEES
PAID TO YASTAS AND OTHER FEES.
- OTHER INCOME/EXPENSES REACHED A PS. (24) MILLION LOSS. THIS ITEM
REFLECTED NON-RECURRING INCOME OR EXPENSES, WHICH FOR THE FOURTH
QUARTER WERE PRIMARILY DRIVEN BY A PROVISION LINKED TO THE FEES OF
DELINQUENT ACCOUNTS AND BY DONATIONS.- OPERATING EXPENSES FOR 4Q17
ROSE 10.8% TO PS. 3,086 WHEN COMPARED TO 4Q16, PRIMARILY
ATTRIBUTABLE TO: I) THE CONVERSION OF SERVICE OFFICES INTO NEW
BRANCHES; AND II) THE EXECUTION OF STRATEGIC INITIATIVES, AND THE
RESTRUCTURING PROCESS THAT WILL TAKE PLACE INTHE FIRST MONTHS OF
2018.
NET INCOME
BANCO COMPARTAMOS REPORTED A NET INCOME OF PS. 255 MILLION,
REPRESENTING A CONTRACTION OF 53.3% VERSUS 4Q16.
ACCUMULATED NET INCOME AS OF DECEMBER 31, 2017 TOTALED PS. 2,385
MILLION, A 23.5% CONTRACTION COMPARED TO THE PS. 3,119 MILLION OF
NET INCOME GENERATED IN 2016.BALANCE SHEET
CASH AND OTHER INVESTMENTS DECREASED BY 45.0% TO PS. 2,695 MILLION,
COMPARED TO PS. 4,902 MILLION IN 4Q16. THE CONTRACTION IS EXPLAINED
BY THE INCREASE IN THE LIQUIDITY POLICY DURING 4Q16 TO 60 DAYS
INSTEADOF 30 DAYS, THAT INCREASE WAS DUE TO THE VOLATILITY IN THE
MARKETS AND AS PRUDENT APPROACH TO MARKET UNCERTAINTIES AT THE END
OF 2016 AND EARLY 2017. THE AMOUNT SHOWED AT THE END OF 2017
REPRESENTS THE FUNDS REQUIRED BY BANCO COMPARTAMOS TO COVER
OPERATING EXPENSES, DEBT MATURITIES AND LOAN PORTFOLIO GROWTH FOR
THE FOLLOWING 30 DAYS. 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 REACHED PS. 21,908 MILLION, A 12.6% CONTRACTION
COMPARED TO THE PS. 25,063 MILLION REPORTED IN 4Q16. THIS
PERFORMANCE EXPLAINED BY THE DIFFERENT DECISIONS MADE IN THE PAST
WHICH SOME OF THEM UNFORTUNATELY IMPACTED THE SERVICE PROVIDED TO
OUR CLIENTS, AND THUS IMPACTING THE POTENTIAL GROWTH OF THE BANK
DURING 2017.
THE AVERAGE OUTSTANDING BALANCE PER CLIENT IN 4Q17 WAS PS. 8,916,
3.6% ABOVE THE PS. 8,604 REPORTED IN 4Q16.
LOANPRODUCTS & CREDIT QUALITY
THE LOAN PRODUCTS OFFERED BY BANCO COMPARTAMOS ARE DISTRIBUTED
UNDER TWO MAIN CATEGORIES (GROUP AND INDIVIDUAL METHODOLOGIES):
1. GROUP LENDING METHODOLOGY: MERCHANT CREDIT (CREDITO COMERCIANTE)
AND WOMEN CREDIT (CREDITO MUJER) REPRESENTED 73.3% OF THE TOTAL
LOAN PORTFOLIO IN 4Q17, WHICH COMBINED PRESENTED AN NPL OF 2.39%
FOR THIS 4Q17, COMPARED TO 4.11% IN 4Q16.2. INDIVIDUAL LENDING
METHODOLOGY: IMPROVEMENT LOANS (CRECE Y MEJORA), ADDITIONAL LOANS
(CREDITO ADICIONAL) AND PERSONAL LOANS (CREDITO INDIVIDUAL)
REPRESENTED A 26.7% SHARE OF THE TOTAL LOANS PORTFOLIO IN 4Q17,
WITH A CONSOLIDATED NPL OF 5.72% IN 4Q17, COMPARED TO 5.57% ONE
YEAR AGO.
DURING 4Q17 TOTAL NPLS REACHED 3.28%, COMPARED TO THE 4.49%
RECORDED IN 4Q16. BANCO COMPARTAMOS' POLICY ISTO WRITE-OFF LOANS
THAT ARE PAST DUE AFTER 180 DAYS. DURING THE FOURTH QUARTER, THIS
FIGURE REACHED PS. 1,073 MILLION OR 85.3% MORE THAN THE AMOUNT
RECORDED IN4Q16.
DURING 4Q17 BANCO COMPARTAMOS DECIDED TO EXECUTE AN EXTRAORDINARY
WRITE-OFF IN A PORTION OF ITS CREDITO COMERCIANTE(MERCHANT CREDIT)
PORTFOLIO, IN ADVANCE TO THE 180 DAYS PAST-DUE METRIC. THIS
DECISION WAS MADE DUE TO THE INADEQUATE PERFORMANCE AND
REENGINEERING PROCESS THAT IS TAKING PLACE IN THIS PRODUCT. FOR
4Q17, THE COVERAGE RATIO (ALLOWANCE FOR LOAN LOSSES /
NON-PERFORMING LOANS) WAS 211.5% COMPARED TO 150.5% IN 4Q16.
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 ASOLIDARITY FIGURE AND A
DIFFERENT COVERAGE FOR INDIVIDUAL LOANS. IT IS IMPORTANT TO
HIGHLIGHT THAT OUR METHODOLOGY FOLLOWS THE RULES THAT APPLY TO THE
'PERSONAL CREDIT' CATEGORY INSTEAD OF THE 'CONSUMER LOANS, NOT
REVOLVING, OTHERS' CATEGORY, AS DESCRIBED PREVIOUSLY.THE ALLOWANCE
FOR LOAN LOSSES BY QUALIFICATION WAS DISTRIBUTED AS
FOLLOWS:CLASSIFICATION FOR ALLOWANCE FOR LOAN LOSSES IS IN
ACCORDANCE WITH CNBV REGULATIONS (SECTION V, ARTICLE 129, AND
PARAGRAPH II) APPLICABLE TO CREDIT INSTITUTIONS SINCE JULY 2013 .
ALLOWANCE FOR LOAN LOSSES CONTINUED TO SUFFICIENTLY COVER
NON-PERFORMING LOANS. THE RATINGS AND THE ALLOWANCE REPORTED FOR
THE THIRD QUARTER 2017 IS THE ONE CORRESPONDING AS OF JUNE 2017,
CONSIDERING THE MODIFICATIONS TO THE GENERAL PROVISIONS FOR CREDIT
INSTITUTIONS PUBLISHED IN THEDOF (DIARIO OFICIAL FEDERACIN) ON
JANUARY 6, 2017; AND FOR WHICH ITS INITIAL EFFECT MAY BE
CONSTITUTED OVER A PERIOD OF TWELVE MONTHS ACCORDING TO THE
APPLICABLE REGULATION.
TOTAL LIABILITIES
DURING 4Q17, TOTAL LIABILITIES REACHED PS. 16,201 MILLION, 21.5%
BELOW THE PS. 20,649 MILLION RECORDED DURING 4Q16. ALL OF BANCO
COMPARTAMOS' CURRENT LIABILITIES ARE FULLY PESO-DENOMINATED;
THEREFORE, THERE IS NO FX EXPOSURE.
BANCO COMPARTAMOS MAINTAINS A WELL-DIVERSIFIED FUNDING MIX WITH
DIFFERENT SOURCES:I) LONG-TERM DEBT ISSUANCES: BANCO COMPARTAMOS IS
A FREQUENT ISSUER IN THE MEXICAN DEBT CAPITAL MARKET. AS OF
DECEMBER 31, 2017, IT HAD PS. 8,554 MILLION OUTSTANDING IN
CERTIFICADOS BURSTILES BANCARIOS (BANK BONDS).
II) STRONG CAPITALBASE: 40.9% OF TOTAL ASSETS WERE FUNDED WITH
EQUITY.
III) CREDIT LINES WITH BANKS AND OTHER INSTITUTIONS: BANCO
COMPARTAMOS HAD PS. 4,472 MILLION IN CREDIT LINES AMONG VARIOUS
BANKING CREDITORS (DEVELOPMENT BANKS AND COMMERCIAL BANKS).
IV) DEPOSITS: FOR 4Q17, DEPOSITS FROM CLIENTS STOOD AT PS. 1,760
MILLION, WHICH WERE GENERATED WITH OVER 1.6 MILLION DEBIT ACCOUNTS
AND FROM THE TERM INVESTMENT PRODUCT.TOTAL STOCKHOLDERS' EQUITY
THE CAPITALIZATION RATIO WAS 36.9%COMPARED TO 27.5% REPORTED IN
4Q16. THE CURRENT RATIO CONTINUES TO REFLECT THE BANK'S STRENGTH IN
ACCORDANCE WITH LEVELS REQUIRED BY BASEL III, AND IS WELL ABOVE THE
MEXICAN BANKING SYSTEM STANDARDS. BANCO COMPARTAMOS REPORTED PS.
9,835.91 MILLION IN TIER I CAPITAL AND RISK-WEIGHTED ASSETS OF PS.
26,688.6 MILLION.BANCO COMPARTAMOS, S.A., INSTITUCIN DE BANCA
MLTIPLE
INCOME STATEMENTFOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31,
2017 AND 2016
(IN MILLIONS OF MEXICAN PESOS)BANCO COMPARTAMOS, S.A., INSTITUCIN
DE BANCA MLTIPLEBALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016(IN MILLIONS OF MEXICAN
PESOS)COMPARTAMOS FINANCIERA (PERU)THE FOLLOWING SECTION SETS FORTH
THE AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2017 (4Q17)
FOR COMPARTAMOS FINANCIERA, GENTERA'S PERUVIAN SUBSIDIARY. ALL
FIGURES ARE IN MEXICAN PESOS AND MAY VARY DUE TO ROUNDING. THE
READER MUST TAKE INTO CONSIDERATION THE FX MOVEMENTS IN THE
COMPARISON PERIODS.NOTE: IT IS IMPORTANT TO HIGHLIGHT THAT THE
ANALYSIS AND FIGURES ARE EXPRESSED IN ACCORDANCE WITH MEXICAN
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND CNBV (NATIONAL BANKING
AND SECURITIES COMMISSION) REGULATIONS. THESE FIGURES ARE NOT
COMPARABLE TO THE FINANCIAL STATEMENTS SUBMITTED TO THE PERUVIAN
SUPERINTENDENCIADE BANCA, SEGUROS Y AFP (PERUVIAN BANKING,
INSURANCE AND PENSION FUND COMMISSION).
FINANCIALHIGHLIGHTS
COMPARTAMOS FINANCIERA'S FIGURES ARE REPORTED UNDER MEXICAN
GAAP.
PORTFOLIO AND NET INCOME ARE EXPRESSED IN MEXICAN PESOS (MILLIONS)
AND WITH THEIR CORRESPONDING FX FOR THE QUARTER.
4Q17 HIGHLIGHTS:
- TOTAL LOAN PORTFOLIO REACHED PS. 9,587 MILLION, 21.8% HIGHER THAN
THAT OF 4Q16.
- NON-PERFORMING LOANSSTOOD AT 3.09% IN 4Q17, COMPARED TO 3.37% IN
4Q16. - ACTIVE CLIENTS REACHED 477,500, A 24.1% INCREASE COMPARED
TO 4Q16.
O GROUP LOANS (CREDITO MUJER) PRODUCT REPRESENTED 67.4% OF THE
CLIENTS SERVED IN PERU, ENDING THE PERIOD WITH 321,967 CLIENTS,
37.6% MORE CLIENTS THAN IN 4Q16.- COMPARTAMOS FINANCIERA REACHED A
TOTAL OF 79 SERVICE OFFICES, 6 MORE OFFICES THAN IN
4Q16.COMPARTAMOS, S.A. (GUATEMALA)THE FOLLOWING SECTION SETS FORTH
THE AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2017 (4Q17)
FOR COMPARTAMOS S.A.,THE COMPANY'S GUATEMALAN SUBSIDIARY. ALL
FIGURES ARE EXPRESSED IN MEXICAN PESOS IN ACCORDANCE WITH MEXICAN
ACCOUNTING PRINCIPLES AND REGULATIONS, AND MAY VARY DUE TO
ROUNDING. THE READER MUST TAKE INTO CONSIDERATION THE FX MOVEMENTS
IN THE COMPARISON PERIODS.FIGURES ARE EXPRESSED IN MEXICAN PESOS
WITH ITS CORRESPONDING FX.
EXCHANGE RATE AS OF DECEMBER 31, 2017, FROM QUETZALES TOUSD:
7.345
EXCHANGE RATE AS OF DECEMBER 31, 2017, FROM USD TO MXP: 19.663
PORTFOLIO AND NET INCOME ARE EXPRESSED IN MEXICAN PESOS (MILLIONS)
AND WITH THEIR CORRESPONDING FX FOR THE QUARTER.
SOURCE: BANCO DE GUATEMALA AND BANCO DE MEXICO.4Q17 HIGHLIGHTS:
- TOTAL LOAN PORTFOLIO REACHED PS. 580 MILLION, 1.3% HIGHER WHEN
COMPARED TO 4Q16.
- NET INCOME FOR 4Q17 STOOD AT PS. 7.1 MILLION COMPARED TO PS. 13.7
MILLION IN 4Q16.
- NON-PERFORMING LOANS STOOD AT 5.38% IN 4Q17, COMPARED TO 3.95% IN
4Q16.- ACTIVE CLIENTS REACHED 92,589, A 10.5% INCREASE COMPARED TO
4Q16.
FIGURES ARE EXPRESSED IN MEXICAN PESOS (MILLIONS) WITH THEIR
CORRESPONDING FX FORTHE QUARTER.
***
ABOUT GENTERA
GENTERA, S.A.B. DE C.V. (FORMERLY COMPARTAMOS, S.A.B. DE C.V.) IS A
HOLDING COMPANY WHOSE