Microfinance Focus, April 30, 2012: Financiera Independencia, a Mexican microfinance lender of personal loans to lower income segment individuals and working capital loans through group lending microfinance, recently announced results for the three month period ended March 31, 2012. Independencia’ s net income for the first quarter of 2012 declined 62.0% year over year, but increased 69.6 per cent  on a sequential basis to Ps.34.2 million.

Here are the highlights 1Q12:

• Total loan portfolio reached Ps.7,367.8 million, a 12.3% year-over-year increase, driven by growth across all business units

• Independencia's individual new loan origination increased to Ps.1,241.3 million, up 43.1% YoY and 2.8% QoQ

• Non-performing loans ratio increased to 9.8% in 1Q12 from 9.4% in 4Q11 and 8.2% in 1Q11

• NIM after provisions including fees increased to 43.9% in 1Q12 from 43.7% in 1Q11

• Provisions for loan losses rose to 42.7% of financial margin in 1Q12, from 42.3% in 4Q11 and 29.6% in 1Q11

• Funding cost decreased to 10.90% in 1Q12 from 11.63% in 1Q11 and 10.98% in 4Q11

• Net income was down 62.0% YoY, and up 69.6% on a sequential basis

• Equity to total assets of 28.6% compared to 30.0% in 1Q11 and 27.7% in 4Q11

• ROE in 1Q12 decreased to 4.4% from 12.1% in 1Q11.

Commenting on the results, Noel Gonzalez, Chief Executive Officer, said, "We are enthusiastic that our efforts to implement a series of strategies designed to further strengthen our operations are showing positive results. This is evident in the pick-up in loan growth at Independencia, our traditional business, and the main growth driver this quarter. Loan origination in our traditional business was up 43% this quarter, the highest rate in the last four years, reaching historical levels. These figures confirm the reversal of the deceleration trend in loan portfolio that began at the end of 2009."