Financiera Independencia 2Q20 Results · Loan Portfolio of Ps.8,226.2 million, a 2.3% decrease YoY....

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Contact: Mario Govea Soria Investor Relations Officer +52 (55) 5229-0200 [email protected]

Financiera Independencia 2Q20 Results

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Financial & Operational Highlights

2Q20 2Q19 % 6M20 6M19 %

Income Statement Data

Net Interest Income after Provisions* 264.9 797.2 -66.8% 1,068.5 1,588.9 -32.8%

Net Operating Income (Loss)* -38.6 116.7 21.4 212.4 -89.9%

Net Income (Loss)* -56.7 87.9 12.5 150.6 -91.7%

Total Shares Outstanding (million) 337.5 715.9 -52.9% 337.5 715.9 -52.9%

Earnings (Loss) Per Share (0.1680) 0.1228 0.0371 0.2104 -82.4%

Profitability & Efficiency

NIM before Provisions Excl. Fees 45.6% 52.3% -6.7 pp 49.4% 51.6% -2.3 pp

NIM after Provisions Excl. Fees 11.4% 37.1% -25.7 pp 23.7% 36.6% -12.8 pp

NIM after Provisions Incl. Fees 28.9% 42.7% -13.8 pp 36.3% 42.4% -6.1 pp

ROA (1.7%) 2.9% 0.2% 2.5% -2.3 pp

ROE (4.8%) 8.3% 0.6% 7.1% -6.5 pp

Efficiency Ratio Incl. Provisions 105.7% 87.3% 18.4 pp 98.7% 88.5% 10.2 pp

Efficiency Ratio Excl. Provisions 48.4% 64.3% -15.9 pp 57.9% 65.3% -7.4 pp

Operating Efficiency 21.8% 26.6% -4.9 pp 26.2% 26.7% -0.5 pp

Fee Income 5.0% 9.7% -4.7 pp 7.0% 9.5% -2.5 pp

Capitalization

Equity to Total Assets 38.5% 35.2% 3.3 pp 38.5% 35.2% 3.3 pp

Credit Quality Ratios

NPL Ratio 5.6% 6.1% -0.5 pp 5.6% 6.1% -0.5 pp

Coverage Ratio 217.7% 108.0% 109.7 pp 217.7% 108.0% 109.7 pp

Operational Data

Number of Clients 480,668 587,302 -18.2% 480,668 587,302 -18.2%

Number of Offices 531 533 -0.4% 531 533 -0.4%

Total Loan Portfolio* 8,226.2 8,421.3 -2.3% 8,226.2 8,421.3 -2.3%

Average Balance (Ps.)** 17,111.2 14,315.5 19.5% 17,111.2 14,315.5 19.5%

* Figures in millions of Mexican Pesos.

** Excludes Other Loans from the average calculation

Financiera Independencia continues the execution of its action plan to mitigate negative impacts amid the COVID-19 pandemic, reports a net positive result in the six month period, increases prudential provisions and strengthens its financial position

1

Loan Portfolio of Ps.8,226.2 million, a 2.3% decrease YoY.

NPL Ratio of 5.6%, a 50 bps decrease vs 2Q19. Nonetheless, the Company decided to constitute additional reserves to account for a possible risk increase on the loan portfolio.

Provision for loan losses of Ps. 799.3 million in 2Q20, which increases the allowances for loan losses in the balance sheet to Ps. 1,008.4 million, a 74% rise with respect to 1Q20; a Coverage Ratio of 217.7%.

Net Interest Income of Ps.1,064.2 million, a 5.4% decrease YoY, 8.1% below 1Q20.

Market related income of Ps. 361.6 million.

Non-interest expense of Ps. 713.6 million, a 11% decrease YoY, 20.7% below 1Q20, as part of the COVID-19 corporate action plan.

Net loss of Ps.56.7 million versus a net income of Ps.87.9 million in 2Q19.

Net profit of Ps.12.5 million for the six month period January-June 2020.

Equity to Total Assets of 38.5%, 330 bps greater than 2Q19.

Mexico City, July 17th

, 2020.- Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP; OTC: FNCRY), (“FINDEP” or the “Company”) a leading Mexican microfinance lender to lower income segment individuals under the personal, payroll and group loans methodologies in Mexico, USA and Brazil, announces results for the three and six month period ended June 30

th, 2020.

Commenting on the results, Eduardo Messmacher, Chief Executive Officer, said:

“In 2Q20 we continued the execution of the action plan aimed at mitigating the negative effects brought by the COVID-19 pandemic. At the same time, we accelerated our investments in technology in order to materialize our vision of business transformation. As a precautionary measure, we consider 441.6 million pesos of additional reserves to account for a possible increase of risk in our loan portfolio. The cummulative net income for the six month period is 12.5 million pesos.”

1All financial figures discussed in this earnings release are prepared in accordance with Mexican Banking Accounting Principles; audited figures are expressly stated.

/ Figures for 2020 and 2019 are expressed in nominal pesos. / Tables state figures in millions of pesos, unless otherwise noted. / FINDEP: refers to Financiera

Independencia and all of its subsidiaries / Independencia: refers to operations excluding Finsol, AEF and AFI.

Financiera Independencia 2Q20 For immediate release

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2Q20 CONSOLIDATED RESULTS Non-audited results for the periods discussed in this release include the effect of the consolidation of the following subsidiaries: Apoyo Economico Familiar (“AEF”), one of the largest unsecured personal lending institutions in Mexico; Apoyo Financiero Inc. (“AFI”), a microfinance company primarily serving the unbanked Hispanic community in California; Financiera Finsol (“Finsol Mexico”), one of the largest group lending microfinance institutions in Mexico; and Finsol Sociedade de Crédito ao Microempreendedor E À Empresa De Pequeno Porte (“Finsol Brasil”) a leading group lending microfinance institution in Brazil.

In the first six months of 2020, the Company posted a net income of Ps. 12.5 million that includes the effect of a 74% increase (2Q20 versus 1Q20) in allowances for loan losses in the balance sheet, and a market related income of Ps.361.6 million. These results follow the measures taken in March 2020 to address the COVID-19 pandemic, which include a slowdown in the loan origination pace, an increased focus on collections and a reduction of expenses. This strategy has allowed us to face the current adverse environment with greater strength. The Company continues with its historical strategy of monitoring key variables and adapting its structure to continue building strength amid COVID-19 uncertainty. The implementation of this strategy helped the Company achieve performance levels within the expected margins of its business units, in an environment of high uncertainty, high volatility in the financial markets and a negative perspective on employment and the global economy. The analysis of the Income Statement is as follows: Net Interest Income after Provision for Loan Losses

In 2Q20 Net Interest Income after Provision for Loan Losses was Ps.264.9 million, a 66.8% decrease YoY with respect to Ps. 797.2 million in 2Q19. That figure considers the effect of a slowdown in the loan origination pace in all the Company subsidiaries, as stated in the corporate action plan to protect liquidity in the short term. It also reflects the effect of payment deferrals or smaller payment amounts on loans that were subject to temporary relief products. Finally, the adjusted net interest income considers the effect of a greater amount of provisions for loan losses, as a precautionary measure should a deterioration of the loan portfolio occur in the coming months. The Net Interest Income after Provision for Loan Losses for the six month period is Ps. 1,068.5 million, a 32.8% decrease YoY. Interest Income 2Q20 Interest was Ps.1,256.8 million, a 4.3% decrease YoY, an 8.6% decrease with respect to 1Q20. Given the reduced loan origination pace during the quarter, the total loan portfolio balance decreased to Ps. 8,226.2 million, a 9.5% contraction with respect to 1Q20, a 2.3% decrease YoY. The individual loan portfolio was Ps.7,282.7 million, a 8.6% decrease with respect to 1Q20, a 1.2% increase YoY. The group loan portfolio was Ps.942.2 million, a 16.2% decrease with respect to 1Q20, and represents 11.5% of the Company´s total loan portfolio. By region, Mexico´s loan portfolio decreased 7.1% with respect to 1Q20; California USA experienced a 13.6% decrease and Brazil -20.7%. The loan portfolio for the formal segment decreased 9% versus 1Q20 and the loan portfolio for the informal segment -10.7%. Independencia’s loan portfolio had a 6.6% quarterly contraction, from Ps.3,439.1 million to Ps.3,213.5 million

2; payroll loans decreased 4.1% and the rest of the portfolio -7.2%. Payroll loans outstanding

balance is Ps.944.9 million, 9.4% higher than in 2Q19 YoY. Independencia’s loans represent 39.1% of the Company’s loan portfolio, versus 40.8% in 2Q19.

2 This amount excludes “Other Loans” of Ps. 1.3 million which are registrered in Independencia’s balance sheet, related to a loan that was granted to Siempre

Creciendo SA de CV SOFOM ENR in 4Q15, in exchange for the collection rights to part of its payroll portfolio through 2021.

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Finsol Mexico’s loan portfolio had a 14.1% quarterly contraction, from Ps.767.0 million to Ps.659.0 million; it represents 8% of the Company’s loan portfolio. Finsol Brazil had a 20.7% quarterly decrease, from Ps.357.3 million to Ps.283.1 million; 15.1 percentage points of this change are explained by the loan portfolio contraction in local currency, the remaining 5.6 percentage points by the effect of a 6% appreciation of the Mexican peso versus Brazilian real. Finsol Brazil represents 3.4% of the Company’s loan portfolio. Apoyo Economico Familiar’s loan portfolio had a 5% quarterly contraction, from Ps.1,845.0 million to Ps. 1,753.4 million; a similar amount of the outstanding balance reported in 2Q19. AEF’s loans represent 21.3% of the Company’s loan portfolio, versus 20.8% in 2Q19. Apoyo Financiero Inc.’s loan portfolio had a 13.6% quarterly contraction, from Ps.2,681.1 million to Ps. 2,315.7 million; 12.1 percentage points of this change are explained by the loan portfolio contraction in US dollars, the remaining 1.5 percentage points by the effect of a 1.7% appreciation of the Mexican peso versus the US dollar. AFI’s loan portfolio represents 28.2% of the Company’s total, and is 15.1% higher with respect to Ps. 2,012.7 million reported in 2Q19.

Table 1: Financial Margin*

2Q20 1Q20 2Q19 QoQ % YoY % 6M20 6M19 %

Interest Income 1,256.8 1,375.2 1,313.6 -8.6% -4.3% 2,632.0 2,621.7 0.4%

Interest on Loans 1,250.1 1,371.9 1,310.2 -8.9% -4.6% 2,621.9 2,614.3 0.3%

Interest from Investment in Securities 6.7 3.4 3.4 100.2% 98.5% 10.1 7.4 36.4%

Interest Expense 192.6 217.1 188.6 -11.3% 2.1% 409.7 379.1 8.1%

Net Interest Income 1,064.2 1,158.1 1,125.0 -8.1% -5.4% 2,222.3 2,242.5 -0.9%

Provision for Loan Losses 799.3 354.5 327.8 125.5% 143.8% 1,153.8 653.7 76.5%

Net Interest Income After Provision for Loan Losses 264.9 803.6 797.2 -67.0% -66.8% 1,068.5 1,588.9 -32.8%

* Figures in millions of Mexican Pesos

Change

Table 2: Loan Portfolio, Number of Clients & Average Balance

2Q20 1Q20 2Q19 QoQ % YoY %

Loan Portfolio (million Ps.) 8,226.2 9,092.6 8,421.3 -9.5% -2.3%

Number of Clients 480,668 533,232 587,302 -9.9% -18.2%

Average Balance (Ps.)* 17,111.2 17,046.1 14,315.5 0.4% 19.5%

*: Excludes Other Loans for Ps.1.3 millions

Change

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Table 3: Number of Clients by Product Type

2Q20 % of Total 1Q20 % of Total 2Q19 % of Total

QoQ %

Change

YoY %

Change

Independencia Loans

-Formal Sector Loans 186,551 38.8% 198,701 37.3% 224,982 38.3% -6.1% -17.1%

- CrediInmediato 154,465 32.1% 164,836 30.9% 189,532 32.3% -6.3% -18.5%

- Más Nómina 32,086 6.7% 33,865 6.4% 35,450 6.0% -5.3% -9.5%

-Informal Sector Loans 58,481 12.2% 65,061 12.2% 75,946 12.9% -10.1% -23.0%

- CrediPopular 55,861 11.6% 62,341 11.7% 72,683 12.4% -10.4% -23.1%

- CrediMama 2,615 0.5% 2,713 0.5% 3,240 0.6% -3.6% -19.3%

- CrediConstruye 5 0.0% 7 0.0% 23 0.0% -28.6% -78.3%

Finsol Loans 107,988 22.5% 129,275 24.2% 142,051 24.2% -16.5% -24.0%

- Finsol México 78,543 16.3% 96,172 18.0% 104,332 17.8% -18.3% -24.7%

- Finsol Brazil 29,445 6.1% 33,103 6.2% 37,719 6.4% -11.1% -21.9%

Apoyo Económico Familiar Loans 99,980 20.8% 109,747 20.6% 116,017 19.8% -8.9% -13.8%

Apoyo Financiero Inc Loans 27,668 5.8% 30,448 5.7% 28,306 4.8% -9.1% -2.3%

Total Number of Loans 480,668 100.0% 533,232 100.0% 587,302 100.0% -9.9% -18.2%

Table 4: Total Loan Portfolio by Product Type*


QoQ %

Change

YoY %

Change

Independencia Loans

-Formal Sector Loan Portoflio 2,723.4 33.1% 2,902.2 31.9% 2,876.0 34.2% -6.2% -5.3%

- CrediInmediato 1,778.5 21.6% 1,916.7 21.1% 2,012.2 23.9% -7.2% -11.6%

- Más Nómina 944.9 11.5% 985.5 10.8% 863.8 10.3% -4.1% 9.4%

-Informal Sector Loan Portfolio 490.1 6.0% 536.9 5.9% 556.4 6.6% -8.7% -11.9%

- CrediPopular 469.7 5.7% 515.1 5.7% 531.9 6.3% -8.8% -11.7%

- CrediMama 20.5 0.2% 21.8 0.2% 24.4 0.3% -6.1% -16.1%

- CrediConstruye 0.0 0.0% 0.0 0.0% 0.2 0.0% -78.3% -97.9%

Finsol Loans 942.2 11.5% 1,124.3 12.4% 1,208.3 14.3% -16.2% -22.0%

- Finsol México 659.0 8.0% 767.0 8.4% 790.0 9.4% -14.1% -16.6%

- Finsol Brazil 283.1 3.4% 357.3 3.9% 418.3 5.0% -20.7% -32.3%

Apoyo Económico Familiar Loans 1,753.4 21.3% 1,845.0 20.3% 1,754.2 20.8% -5.0% 0.0%

Apoyo Financiero Inc Loans 2,315.7 28.2% 2,681.1 29.5% 2,012.7 23.9% -13.6% 15.1%

Other Loans 1.3 0.0% 3.1 0.0% 13.7 0.2% -57.1% -90.3%

Total Loan Portfolio 8,226.2 100.0% 9,092.6 100.0% 8,421.3 100.0% -9.5% -2.3%


Table 5: Total Loan Portfolio by Segment*


QoQ %

Change

YoY %

Change

Formal Sector Loan Portfolio 5,938.7 72.2% 6,529.4 71.8% 5,788.2 68.7% -9.0% 2.6%

- Independencia 2,723.4 33.1% 2,902.2 31.9% 2,876.0 34.2% -6.2% -5.3%

- AEF Formal 899.5 10.9% 946.0 10.4% 899.6 10.7% -4.9% 0.0%

- AFI 2,315.7 28.2% 2,681.1 29.5% 2,012.7 23.9% -13.6% 15.1%

Informal Sector Loan Portfolio 2,286.1 27.8% 2,560.2 28.2% 2,619.3 31.1% -10.7% -12.7%

- Independencia 490.1 6.0% 536.9 5.9% 556.4 6.6% -8.7% -11.9%

- Finsol México 659.0 8.0% 767.0 8.4% 790.0 9.4% -14.1% -16.6%

- Finsol Brazil 283.1 3.4% 357.3 3.9% 418.3 5.0% -20.7% -32.3%

- AEF Informal 853.8 10.4% 898.9 9.9% 854.5 10.1% -5.0% -0.1%

Other Loan 1.3 0.0% 3.1 0.0% 13.7 0.2% -57.1% -90.3%

Total Loan Portfolio 8,226.2 100.0% 9,092.6 100.0% 8,421.3 100.0% -9.5% -2.3%


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Interest Expense Interest Expense in 2Q20 was Ps. 192.6 million, a 2.1% YoY increase; a 11.3% decrease relative to Ps.217.1 million in 1Q20.

Provision for Loan Losses

3

The Company rates its loan portfolio using an internal methodology based on the probability of default by the borrowers and on the severity of the credit loss. The Company recognizes an Allowance for Loan Losses (EPRC) for impairment of the loan portfolio based on an evaluation of credit risk. The EPRC is estimated based on possible events of default in the loan portfolio. During 2Q20, the Company applied the Mexican Banking Commission (CNBV) accounting rules released on March 27, 2020, regarding the relief products that the Company offered to some of its clients during the second quarter. By applying those rules, the Company did not modify its accounting policies. In addition to the provision calculation that results from applying the above mentioned CNBV rules, the Company decided to constitute additional provisions to account for a possible future loan portfolio deterioration, in the context of COVID-19 pandemic and its negative impact on the economy. Having considered that, the Provision for Loan Losses in 2Q20 was Ps.799.3 million and includes Ps.441.6 million of additional loan provisions and Ps.29.7 million of written-off loans recoveries. Net Operating Revenue

Net Operating Revenue was Ps.674.9 million in 2Q20, a 26.5% decrease versus 2Q19 YoY, a 29.7% decrease with respect to Ps.959.9 million in 1Q20. During 2Q20, Commissions and Fees Collected were Ps.49.9 million, a 51.2% decrease with respect to Ps.102.4 million reported in 1Q20, due to the observed loan origination slowdown during the quarter. Commissions and Fees Paid were Ps.16.3 million in 2Q20; the resulting net Non-Interest Income was Ps.33.6 million in the quarter, a 58.2% decrease with respect to 1Q20. Other Operating Income was Ps. 14.8 million in 2Q20, which reflects fewer revenues from insurance financing and mobile phone financing to our clients. In 2Q20 the Compay had Ps. 361.6 million of Market Related Income, equivalent to 54% of the net operating revenue of the quarter, which was obtained after reducing debt issuance and the re-balance of currency hedging positions. Net Operating Income In 2Q20, the Company posted a net operating loss of Ps.38.6 million, a reduction of Ps.155.4 million versus 2Q19. Net Operating Income for the six month period in 2020 is Ps. 21.4 million. Non-interest Expense Non-Interest Expense in 2Q20 was Ps.713.6 million, a 11% decrease YoY, a 20.7% reduction with respect to 1Q20, as part of the corporate action plan that is under way, which considers up to 20% cut in salaries, downsize in the sales department, a slowdown in new personnel hirings and a general reduction in operating expenses.

3 The provision for loan losses includes, since 2019, the income amounts from recoveries of written-off loans. For comparison purposes, the provision for loan losses

of 2Q19 presented in this earnings release considers that adjustment.

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Net Income (Loss) In 2Q20 The Company posted a Net Loss of Ps.56.7 million; the cumulative six month period net income is Ps.12.5 million.

UPDATE IN THE CORPORATE ACTION PLAN REGARDING THE COVID-19 PANDEMIC

During 2Q20 the Company continued the deployment of its Corporate Action Plan aimed at mitigating negative impacts on the business objectives and the loan portfolio, guided by two main objectives: (1) promoting liquidity and cash flow generation; and (2) protecting the health of managers and collaborators, ensuring their well-being and guaranteeing business continuity. Regarding liquidity and cash flow generation:

1. The Company generated positive operating cash flows during 2Q20, explained by a good performance in loan collections, a reduced origination pace, limited loan renewals, savings, expense cuts and austerity measures.

2. The Company had access to its credit lines and disbursed resources on a revolving basis, both from commercial and development banking institutions.

3. The Company offered specific solutions to its clients based on a case by case assessment;

providing temporary relief according to the region, line of business and type of product contracted.

Table 6: Net Operating Income* Change

2Q20 1Q20 2Q19 QoQ % YoY % 6M20 6M19 % Change

Financial Margin 1,064.2 1,158.1 1,125.0 -8.1% -5.4% 2,222.3 2,242.5 -0.9%

Provision for Loan Losses 799.3 354.5 327.8 125.5% 143.8% 1,153.8 653.7 76.5%

Financial Margin After Provision for Loan Losses 264.9 803.6 797.2 -67.0% -66.8% 1,068.5 1,588.9 -32.8%

Non-Interest Income, net 33.6 80.4 89.0 -58.2% -62.2% 114.0 174.7 -34.8%

- Commissions and Fees Collected 49.9 102.4 108.6 -51.2% -54.0% 152.3 212.4 -28.3%

- Commissions and Fees Paid 16.3 22.0 19.6 -25.9% -16.7% 38.3 37.7 1.6%

Market Related Income 361.6 7.7 -6.3 4568.8% 369.4 8.4 4312.0%

Other Operating Income (expense) 14.8 68.1 38.3 -78.3% -61.3% 83.0 68.8 20.7%

Net Operating Revenue 674.9 959.9 918.2 -29.7% -26.5% 1,634.8 1,840.7 -11.2%

Non-Interest Expense 713.6 899.8 801.5 -20.7% -11.0% 1,613.4 1,628.3 -0.9%

- Other Administrative & Operational Expenses 226.1 356.9 275.6 -36.6% -18.0% 583.1 571.4 2.0%

- Salaries & Employee Benefits 487.5 542.9 525.8 -10.2% -7.3% 1,030.3 1,056.9 -2.5%

Net Operating Income (Loss) (38.6) 60.1 116.7 21.4 212.4 -89.9%

Operational Data

Number of Offices 531 531 533 0.0% -0.4% 531 533 -0.4%

- Independencia 169 169 159 0.0% 6.3% 169 159 6.3%

- Finsol México 143 143 147 0.0% -2.7% 143 147 -2.7%

- Finsol Brazil 27 27 31 0.0% -12.9% 27 31 -12.9%

- Apoyo Económico Familiar 164 164 167 0.0% -1.8% 164 167 -1.8%

- Apoyo Financiero Inc 28 28 29 0.0% -3.4% 28 29 -3.4%

Total Labor Force 6,848 7,818 7,892 -12.4% -13.2% 6,848 7,892 -13.2%

- Independencia 3,412 4,151 4,320 -17.8% -21.0% 3,412 4,320 -21.0%

- Finsol México 1,076 1,185 1,153 -9.2% -6.7% 1,076 1,153 -6.7%

- Finsol Brazil 295 298 309 -1.0% -4.5% 295 309 -4.5%

- Apoyo Económico Familiar 1,839 1,954 1,889 -5.9% -2.6% 1,839 1,889 -2.6%

- Apoyo Financiero Inc 226 230 221 -1.7% 2.3% 226 221 2.3%

* Financial data in millions of Mexican Pesos.

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The specific solutions amid COVID-19 considered:

1. “Skip a Payment” of principal and interest over a maximum of 3 month on individual loans.

2. “Skip a Payment” of principal only over a maximum of 6 amortizations on group loans.

3. Other relief schemes used by the Company, such as loan restructures with extended tenors to reduce interest payments, and condonation of interest and accessories.

As of June 30, 82% of the Company´s loan portfolio did not receive specific solutions amid COVID-19; from the 18% that received solutions,12% have finished their relief period and 6% still have a support. The actions undertaken have provided experience and knowledge to the Company with regards to the safety and effectiveness of remote collaborative work using technology, as well as new ways to serve and interact with its customers. This gives the opportunity to improve our product offer, to provide new means for loan origination and collections, and to adopt measures that foster productivity on a permanent basis. We have developed technological tools in order to accelerate the digital transformation process of the Company, which will enable fully remote operations. We have strengthened our capabilities to prospect clients remotely using digital devices; we undertake loan renewals remotely without requiring the presence of our clients in a branch office; and we do loan collections electronically using payment channels with service 24x7. We estimate that in the short term we will have the capabilities to disburse new loans and renewals using electronic channels, which will round-up our investments aimed at having remote service processes at a 100%. This will be a complement to our current supply of payment methods and will allow us to redefine the concept of branch. FINANCIAL POSITION

Total Loan Portfolio

4

In 2Q20 the Company’s Total Loan Portfolio is Ps.8,226.2 million, a 2.3% decrease YoY, and represents 68.1% of the total assets. AFI´s loan portfolio is Ps.2,315.7 million, 15% above the outstanding balace reported in 2Q19, and now represents 28% of the Company’s total loan portfolio. Independencia´s payroll loan portfolio is Ps.944.9 million, a 9% increase YoY and represents 12% of the Company’s total loan portfolio. AEF´s loan portfolio is Ps.1,753.4 million, amount similar to the outstanding balace reported in 2Q19, and now represents 21% of the Company’s total loan portfolio. In 2Q20 the group loans portfolio is Ps.942.2 million, a 22% decrease YoY. Finsol Mexico´s loan portfolio is Ps.659.0 million and represents 8% of the of the Company’s loan portfolio; Finsol Brazil´s loan portfolio is Ps.283.1 million and represents 3.4% of the Company’s total. Consistent with the deployment of the corporate action plan aimed at mitigating negative effects from the COVID-19 pandemic, the Company´s client base decreased 18.2% YoY in 2Q20 to a total of 480,668 clients; of these, 245,032 clients are from Independencia, 107,988 from Finsol, 99,980 from AEF and 27,668 from AFI. The average loan amount per client increased 19.5% YoY to Ps.17,111, as a result of a greater proportion of clients from the formal segment in the portfolio and client retention over various cycles. The growth in AFI´s loan portfolio as well as the depreciation of the peso against the US dollar are reflected in this indicator.

4 Since 4Q15, the Company’s loan portfolio includes Other Loans, which for 2Q20 amounted Ps.1.3 million from a loan granted to Siempre Creciendo SA de CV

SOFOM E.N.R. in exchange for the collection of rights to part of its payroll portfolio.

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Non-Performing Loans Portfolio (NPLs) NPLs are Ps.463.2 million in 2Q20, a 10.4% decrease versus Ps. 517.2 million observed in 2Q19. The NPL ratio was 5.6% in 2Q20, a 50 bps reduction versus 6.1% reported in 2Q19. The Coverage Ratio

5

for 2Q20 was 217.7%, above the 108% observed in 2Q19. Starting January 2013, the Company’s policy is to maintain an NPL Coverage Ratio at or above 100% at all times. Liabilities At 2Q20 total liabilities are Ps.7,428.9 million, a 5.3% decrease from the Ps.7,847.3 million reported at 2Q19. The change in the amount of liabilities is affected by purchases of FINDEP24 Notes during the quarter, which reduced the leverage in the balance sheet from Ps. 4,753.8 million in 2Q19 to Ps.4,366.8 million in 2Q20. In 2Q20, FINDEP’s debt

6 consisted of Ps.4,366.8 million of US dollar denominated Long Term Debt

Issuance due on July 2024 as well as Ps.2,338.7 million of Bank and Other Entities Loans. The Company’s total credit lines amounted to Ps.4,927.0 million at the end of 2Q20.

Stockholders’ Equity At 2Q20 stockholder’s equity was Ps.4,643.8 million, a 8.9% increase from Ps.4,264.6 million at the end of 2Q19. This reflects a Ps.171.2 million positive YoY variation in Retained Earnings and Net Income, a Ps.95.3 million positive YoY variation in foreign exchange effect and a Ps.110.5 million positive YoY variation in derivatives for hedging purposes. PROFITABILITY, EFFICIENCY AND CAPITALIZATION RATIOS

ROE

7/ROA

8

In 2Q20, the Return on Equity ratio was negative 4.8% and the Return on Assets ratio negative 1.7%.

Efficiency Ratio

9 & Operating Efficiency

10

In 2Q20, the Company reduced a net total of 2 branches YoY. The labor force was reduced to 6,848 employees, 1,044 fewer people than the 7,892 head count in 2Q19. In 2Q20, the Efficiency Ratio was 105.7%, compared with 87.3% in 2Q19. Operating Efficiency was 21.8% in 2Q20, compared to 26.6% in 2Q19.

Capitalization In 2Q20, Equity to Total Assets Ratio was 38.5%, a 330 bps increase versus 35.2% reported in 2Q19.

5 Coverage Ratio: Allowances for loan losses / Non-performing loans

6 It includes interest provision

7 ROE: Net Income for the quarter annualized / Average Stockholders’ Equity of the current and previous quarters

8 ROA: Net Income for the quarter annualized / Average Total Assets of the current and previous quarters

9 Efficiency Ratio: No-interest expense for the quarter annualized / Average Total Assets of the current and previous quarters

10 Operating Efficiency: Non-interest Expense of the quarter / Net Interest Income of the quarter

Page 10 of 18

DISTRIBUTION NETWORK

In 2Q20 the Company closed a net total of 2 branches with respect to those reported in 2Q19: Finsol Mexico, Finsol Brazil, Apoyo Económico Familiar and Apoyo Financiero Inc closed down 4, 4, 3 and 1 branches respectively, while Financiera Independencia strengthened its distribution network with 10 branch openings. At the end of 2Q20, the Company operated 531 branches in Mexico, Brazil, and the US. The breakdown is the following: 476 offices in Mexico (Independencia: 169, Finsol: 143 and AEF: 164), 27 offices in Brazil (Finsol Brazil), and 28 offices in California (AFI). The Company’s loan portfolio in Mexico is well diversified and no Mexican federal entity represents more than 14.5% of the total. The three federal entities in Mexico with the largest share are Estado de Mexico, Mexico City and Veracruz, with a 14.5%, 12.9% and 7.3%, respectively. 2Q20 EARNINGS CONFERENCE CALL

Day: Monday, July 20

th, 2020

Time: 12:00 PM US (ET); 11:00 AM Mexico (CT)

Dial-in number: 800-437-2398 (US & Canada) 929-477-0577 (International & Mexico) Access Code: 2754905 Web cast: A live web cast of the conference call and replay will be available at

www.findep.mx Replay: Starting at 3:00 pm (ET) on July 20

th and ending at 11:59 pm (ET) on August 3

rd,

2020. The replay will be accessible by dialing 844-512-2921 (U.S./Canada) or 412-317-6671 (International) and entering passcode 2754905.

About Financiera Independencia: Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (FINDEP), is a Mexican institution that provides microcredit loans on an unsecured basis to individuals in the low-income segments in urban areas of both the formal and informal economy and working capital loans through group lending microfinance in rural areas. As of June 30

th, 2020, FINDEP had a total outstanding loan balance of

Ps.8,226.2 million, operated 531 offices in Mexico, Brazil, and the US and had a total labor force of 6,848 people. The Company listed on the Mexican Stock Exchange on November 1

st, 2007, where it

trades under the symbol “FINDEP”. More information can be found at www.findep.mx Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in FINDEP’s filings with the Mexican Stock Exchange. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

*** TABLES TO FOLLOW ***

Page 11 of 18

FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R.

Consolidated Income StatementFor the Six Months Periods Ended June 30, 2020 and 2019(Millions of Mexican Pesos)

2Q20 vs 2Q19 6M20 vs 6M19

2Q20 1Q20 2Q19 $ % 6M20 6M19 $ %

Interest Income 1,256.8 1,375.2 1,313.6 (56.9) (4.3%) 2,632.0 2,621.7 10.3 0.4%

Interest Expense 192.6 217.1 188.6 4.0 2.1% 409.7 379.1 30.6 8.1%

Net Interest Income 1,064.2 1,158.1 1,125.0 (60.8) (5.4%) 2,222.3 2,242.5 (20.2) (0.9%)

Provision for Loan Losses 799.3 354.5 327.8 471.5 143.8% 1,153.8 653.7 500.1 76.5%

Net Interest Income After Provision for Loan Losses 264.9 803.6 797.2 (532.4) (66.8%) 1,068.5 1,588.9 (520.4) (32.8%)

Commissions and Fees Collected 49.9 102.4 108.6 (58.7) (54.0%) 152.3 212.4 (60.1) (28.3%)

Commissions and Fees Paid 16.3 22.0 19.6 (3.3) (16.7%) 38.3 37.7 0.6 1.6%

Market Related Income 361.6 7.7 (6.3) 368.0 369.4 8.4 361.0

Other Operating Income (expense) 14.8 68.1 38.3 (23.4) (61.3%) 83.0 68.8 14.2 20.7%

Net Operating Revenue 674.9 959.9 918.2 (243.2) (26.5%) 1,634.8 1,840.7 (205.9) (11.2%)

Non-Interest Expense 713.6 899.8 801.5 (87.9) (11.0%) 1,613.4 1,628.3 (14.9) (0.9%)

Net Operating Income (Loss) (38.6) 60.1 116.7 (155.4) 21.4 212.4 (191.0) (89.9%)

Income Tax

Current 20.0 23.7 21.3 (1.3) (6.1%) 43.7 53.3 (9.5) (17.9%)

Deferred (1.9) 4.3 7.6 (9.5) 2.4 8.6 (6.2) (71.7%)

Total Income (Loss) Before Minority Interest (56.7) 32.0 87.9 (144.6) (24.7) 150.6 (175.3)

Participation in the Results of Associates - 37.2 - - 37.2 - 37.2

Minority Interest - - 0.0 (0.0) - 0.0 (0.0)

Net Income (Loss) (56.7) 69.2 87.9 (144.6) (164.5%) 12.5 150.6 (138.1) (91.7%)

Weighted Average Number of Shares 337.5 337.5 715.9 378.4- (52.9%) 337.5 715.9 (378.4) (52.9%)

EPS (0.1680) 0.2051 0.1228 (0.2908) 0.0371 0.2104 (0.1733) (82.4%)

Page 12 of 18


Consolidated Balance SheetAs of June 30, 2020 and 2019(Millions of Mexican Pesos)

2Q20 vs 2Q19

2Q20 1Q20 2Q19 $ %

ASSETS

Cash and Cash Equivalents 539.3 798.9 279.2 260.1 93.2%

Performing Loans 7,762.9 8,614.8 7,904.1 (141.1) (1.8%)

Non-Performing Loans 463.2 477.9 517.2 (54.0) (10.4%)

Total Loan Portfolio 8,226.2 9,092.6 8,421.3 (195.1) (2.3%)

Allowances for Loan Losses (1,008.4) (580.1) (558.7) (449.6) 80.5%

Total Loan Portfolio - Net 7,217.8 8,512.5 7,862.5 (644.8) (8.2%)

Other Accounts Receivable - Net 446.1 533.9 596.8 (150.6) (25.2%)

Property, Plant & Equipment - Net 247.5 261.0 260.6 (13.1) (5.0%)

Deferred Income Tax 952.4 915.3 975.4 (23.1) (2.4%)

Derivative Financial Instruments 798.8 1,118.6 224.2 574.6 256.3%

Other Assets 1,870.9 2,005.8 1,913.2 (42.3) (2.2%)

Total Assets 12,072.7 14,146.0 12,111.9 (39.2) (0.3%)

LIABILITIES

Long term debt issuance 4,366.8 5,663.4 4,753.8 (387.0) (8.1%)

Bank and Other Entities Loans 2,338.7 2,986.8 2,378.5 (39.7) (1.7%)

Derivative Financial Instruments - - - -

Other Accounts Payable 723.4 727.1 715.0 8.4 1.2%

Total Liabilities 7,428.9 9,377.3 7,847.3 (418.4) (5.3%)

STOCKHOLDERS' EQUITY

Capital Stock 157.2 157.2 157.2

Additional Paid-In Capital 1,574.7 1,574.7 1,574.7

Capital Reserves 14.3 14.3 14.3

Retained Earnings 2,715.2 2,715.2 2,405.9 309.3 12.9%

Net Income (Loss) for the Year 12.5 69.2 150.6 (138.1) (91.7%)

Financial Instruments - Derivatives 55.9 95.6 (54.6) 110.5

Foreign exchange effect 116.8 145.2 21.4 95.3 444.8%

Other comprehensive income movement ent related to NIF D-3 (2.7) (2.7) (5.0) 2.3 (45.6%)

Minority Interest 0.0 (0.0) 0.0 (0.0)

Total Stockholders' Equity 4,643.8 4,768.7 4,264.6 379.3 8.9%

Total Liabiliies and Stockholders' Equity 12,072.7 14,146.0 12,111.9 (39.2) (0.3%)

Page 13 of 18

Independencia

Income StatementFor the Six Months Periods Ended June 30, 2020 and 2019(Millions of Mexican Pesos)

2Q20 vs 2Q19 6M20 vs 6M19

2Q20 1Q20 2Q19 $ % 6M20 6M19 $ %

Interest Income 568.1 625.2 612.0 (43.9) (7.2%) 1,193.3 1,230.6 (37.4) (3.0%)

Interest Expense 107.2 124.7 109.6 (2.4) (2.2%) 231.9 222.2 9.7 4.4%

Net Interest Income 460.9 500.5 502.4 (41.5) (8.3%) 961.4 1,008.4 (47.1) (4.7%)

Provision for Loan Losses 255.2 115.8 113.0 142.2 125.9% 371.0 243.6 127.4 52.3%

Net Interest Income After Provision for Loan Losses 205.7 384.7 389.4 (183.7) (47.2%) 590.4 764.8 (174.5) (22.8%)


Commissions and Fees Paid 9.7 10.6 10.1 (0.3) (3.0%) 20.3 19.2 1.1 5.5%

Market Related Income 361.6 7.7 (6.3) 368.0 369.4 8.4 361.0


Net Operating Revenue 577.9 461.7 445.5 132.4 29.7% 1,039.6 893.0 146.7 16.4%

Non-Interest Expense 317.7 439.6 374.5 (56.8) (15.2%) 757.3 769.8 (12.5) (1.6%)

Net Operating Income (Loss) 260.2 22.2 71.0 189.1 266.3% 282.3 123.2 159.2 129.2%

Income Tax

Current 3.5 4.2 3.6 (0.1) (3.4%) 7.7 7.1 0.6 8.7%

Deferred 77.8 24.3 18.0 59.8 332.6% 102.1 32.5 69.6 214.6%

Total Income (Loss) Before Minority Interest 178.8 (6.3) 49.4 129.4 262.1% 172.6 83.7 88.9 106.3%

Participation in the Results of Associates - 41.3 - - 41.3 - 41.3

Minority Interest - - 0.0 (0.0) - - -

Net Income (Loss) 178.8 35.0 49.4 129.4 262.1% 213.9 83.7 130.2 155.7%

Independencia

Balance SheetAs of June 30, 2020 and 2019(Millions of Mexican Pesos)

2Q20 vs 2Q19

2Q20 1Q20 2Q19 $ %

ASSETS


Performing Loans 3,005.5 3,240.3 3,176.1 (170.6) (5.4%)



Allowances for Loan Losses (320.0) (181.5) (220.3) (99.7) 45.2%


Other Accounts Receivable - Net 2,615.7 2,941.0 2,675.1 (59.4) (2.2%)

Property, Plant & Equipment - Net 153.3 157.6 140.0 13.4 9.6%

Deferred Income Tax 496.2 557.0 681.6 (185.5) (27.2%)

Derivative Financial Instruments 740.0 1,068.2 218.0 522.0 239.5%

Other Assets 4,046.2 4,058.9 3,699.4 346.8 9.4%

Total Assets 11,161.9 12,507.5 10,732.9 429.0 4.0%

LIABILITIES

Long term debt issuance 4,366.8 5,663.4 4,753.8 (387.0) (8.1%)

Bank and Other Entities Loans 1,442.7 1,638.4 1,343.9 98.8 7.3%



Capital Stock 157.2 157.2 157.2

Additional Paid-In Capital 1,574.7 1,574.7 1,574.7

Capital Reserves 14.3 14.3 14.3

Retained Earnings 2,715.2 2,715.2 2,405.9 309.3 12.9%

Net Income (Loss) for the Year 213.9 35.0 83.7 130.2 155.7%

Financial Instruments - Derivatives 55.9 95.6 (54.6) 110.5

Cumulative Conversion Effect 116.8 145.2 21.4 95.3 444.8%

Remediciones x benef. definidos a empleados (2.7) (2.7) (5.0) 2.3 (45.6%)

Minority Interest - 0.0 0.0

Total Stockholders' Equity 4,845.2 4,734.6 4,197.6 647.5 15.4%

Total Liabiliies and Stockholders' Equity 11,161.9 12,507.5 10,732.9 429.0 4.0%

Page 14 of 18

Finsol México


2Q20 vs 2Q19 6M20 vs 6M19

2Q20 1Q20 2Q19 $ % 6M20 6M19 $ %

Interest Income 150.1 167.2 168.3 (18.1) (10.8%) 317.3 342.4 (25.1) (7.3%)


Net Interest Income 139.5 153.3 157.5 (18.1) (11.5%) 292.8 320.8 (28.0) (8.7%)




Commissions and Fees Paid 2.7 3.7 3.6 (0.9) (23.8%) 6.5 7.3 (0.8) (11.0%)

Market Related Income - - - - - - -

Other Operating Income (expense) 2.7 6.3 7.0 (4.3) (61.5%) 9.0 13.8 (4.8) (34.8%)

Net Operating Revenue 32.6 109.5 114.4 (81.8) (71.5%) 142.0 233.7 (91.7) (39.2%)


Net Operating Income (Loss) (69.0) 1.3 7.6 (76.6) (67.8) 17.0 (84.8)

Income Tax

Current (1.8) 1.3 5.8 (7.6) (0.5) 11.9 (12.3)

Deferred (18.7) (1.2) (3.6) (15.1) 424.1% (19.9) (6.9) (13.0) 188.3%

Total Income Before Minority Interest (48.6) 1.2 5.3 (53.9) (47.4) 12.0 (59.4)

Participation in the Results of Associates - (1.0) - - (1.0) - (1.0)

Net Income (Loss) (48.6) 0.2 5.3 (53.9) (48.4) 12.0 (60.4)

Finsol México


2Q20 vs 2Q19

2Q20 1Q20 2Q19 $ %

ASSETS


Performing Loans 615.7 710.8 737.7 (122.0) (16.5%)


Total Loan Portfolio 659.0 767.0 790.0 (131.0) (16.6%)


Total Loan Portfolio - Net 525.2 680.5 709.9 (184.7) (26.0%)

Assets, Accounts Receivable & Other Assets 239.3 258.0 277.7 (38.4) (13.8%)

Total Assets 827.5 1,000.0 1,010.2 (182.7) (18.1%)

LIABILITIES

Bank and Other Entities Loans 224.7 326.8 392.5 (167.8) (42.8%)


Total Liabilities 448.1 572.0 599.7 (151.7) (25.3%)

Total Stockholders' Equity 379.4 428.0 410.5 (31.1) (7.6%)

Total Liabiliies and Stockholders' Equity 827.5 1,000.0 1,010.2 (182.7) (18.1%)

Page 15 of 18

Finsol Brazil


2Q20 vs 2Q19 6M20 vs 6M19

2Q20 1Q20 2Q19 $ % 6M20 6M19 $ %

Interest Income 39.6 50.1 62.3 (22.7) (36.4%) 89.8 126.8 (37.0) (29.2%)

Interest Expense 6.5 7.5 8.5 (2.1) (24.3%) 13.9 17.8 (3.9) (21.8%)

Net Interest Income 33.2 42.7 53.8 (20.6) (38.3%) 75.9 109.0 (33.1) (30.4%)









Income Tax

Current (0.1) 0.7 3.8 (3.8) 0.7 3.8 (3.1) (82.5%)

Deferred (5.1) (0.4) (2.8) (2.4) 84.4% (5.6) (0.9) (4.7) 512.2%

Total Income Before Minority Interest (11.2) (0.0) 5.0 (16.2) (11.2) 7.2 (18.5)

Net Income (Loss) (11.2) (0.0) 5.0 (16.2) (11.2) 7.2 (18.5)

Finsol Brazil


2Q20 vs 2Q19

2Q20 1Q20 2Q19 $ %

ASSETS


Performing Loans 269.8 345.2 404.8 (135.0) (33.3%)


Total Loan Portfolio 283.1 357.3 418.3 (135.2) (32.3%)


Total Loan Portfolio - Net 250.7 339.0 397.7 (147.1) (37.0%)

Assets, Accounts Receivable & Other Assets 80.4 67.2 27.1 53.3 196.7%

Total Assets 438.5 480.4 462.1 (23.7) (5.1%)

LIABILITIES

Bank and Other Entities Loans 90.8 111.0 30.1 60.7 201.4%

Other Accounts Payable 251.6 256.9 314.8 (63.2) (20.1%)

Total Liabilities 342.4 367.8 345.0 (2.5) (0.7%)


Total Liabiliies and Stockholders' Equity 438.5 480.4 462.1 (23.7) (5.1%)

Page 16 of 18

Apoyo Económico Familiar


2Q20 vs 2Q19 6M20 vs 6M19

2Q20 1Q20 2Q19 $ % 6M20 6M19 $ %

Interest Income 285.0 334.1 310.2 (25.2) (8.1%) 619.1 611.2 7.9 1.3%


Net Interest Income 254.0 300.7 278.6 (24.6) (8.8%) 554.7 548.5 6.2 1.1%




Commissions and Fees Paid 0.6 0.4 0.3 0.3 109.7% 1.0 0.6 0.4 76.6%

Market Related Income (0.0) 0.0 (0.0) 0.0 0.0 (0.0) 0.0

Other Operating Income (expense) 4.5 10.5 13.4 (8.9) (66.5%) 15.0 23.9 (8.9) (37.2%)




Income Tax

Current 46.0 21.7 6.9 39.0 561.9% 67.7 18.4 49.3 267.1%

Deferred (55.9) (18.2) (5.5) (50.4) 917.6% (74.1) (16.0) (58.1) 362.6%

Total Income Before Minority Interest (99.4) 34.0 3.9 (103.3) (65.3) 16.3 (81.6)

Participation in the Results of Associates - (3.1) - - (3.1) - (3.1)

Net Income (Loss) (99.4) 31.0 3.9 (103.3) (68.4) 16.3 (84.7)

Apoyo Económico Familiar


2Q20 vs 2Q19

2Q20 1Q20 2Q19 $ %

ASSETS


Performing Loans 1,625.2 1,725.0 1,605.1 20.1 1.3%






Total Assets 1,963.7 2,160.9 1,977.5 (13.8) (0.7%)

LIABILITIES

Bank and Other Entities Loans 580.5 682.7 521.1 59.4 11.4%

Other Accounts Payable 573.8 569.4 635.6 (61.8) (9.7%)



Total Liabiliies and Stockholders' Equity 1,963.7 2,160.9 1,977.5 (13.8) (0.7%)

Page 17 of 18

Apoyo Financiero Inc


2Q20 vs 2Q19 6M20 vs 6M19

2Q20 1Q20 2Q19 $ % 6M20 6M19 $ %

Interest Income 213.5 198.1 160.8 52.7 32.8% 411.6 310.7 100.9 32.5%

Interest Expense 37.3 37.8 28.1 9.1 32.5% 75.0 54.9 20.2 36.7%

Net Interest Income 176.3 160.3 132.7 43.6 32.9% 336.6 255.8 80.8 31.6%


Net Interest Income After Provision for Loan Losses (23.7) 90.7 105.5 (129.2) 67.0 193.1 (126.1) (65.3%)




Other Operating Income (expense) 0.5 (3.3) (2.0) 2.6 (2.8) (3.3) 0.5 (16.2%)

Net Operating Revenue (16.5) 97.5 115.2 (131.7) 81.0 211.1 (130.1) (61.6%)

Non-Interest Expense 87.6 98.6 88.5 (0.9) (1.0%) 186.2 167.7 18.6 11.1%

Net Operating Income (Loss) (104.1) (1.1) 26.7 (130.8) (105.2) 43.5 (148.7)

Income Tax

Current (27.7) (4.2) 2.5 (30.2) (31.9) 12.1 (44.0)

Deferred - - - - - - -

Total Income (Loss) Before Minority Interest (76.4) 3.0 24.2 (100.6) (73.4) 31.4 (104.7)

Net Income (Loss) (76.4) 3.0 24.2 (100.6) (73.4) 31.4 (104.7)

Apoyo Financiero Inc


2Q20 vs 2Q19

2Q20 1Q20 2Q19 $ %

ASSETS


Performing Loans 2,246.8 2,593.4 1,980.4 266.4 13.5%

Non-Performing Loans 68.9 87.7 32.3 36.7 113.6%

Total Loan Portfolio 2,315.7 2,681.1 2,012.7 303.0 15.1%


Total Loan Portfolio - Net 2,057.8 2,551.2 1,960.0 97.8 5.0%


Total Assets 2,206.0 2,740.4 2,061.8 144.2 7.0%

LIABILITIES

Bank and Other Entities Loans 0.0 228.0 90.8 (90.8) (100.0%)

Other Accounts Payable 1,485.4 1,788.5 1,412.4 73.1 5.2%


Total Stockholders' Equity 720.6 723.9 558.6 162.0 29.0%

Total Liabiliies and Stockholders' Equity 2,206.0 2,740.4 2,061.8 144.2 7.0%

Page 18 of 18


Key Ratios & Operating DataFor the Six Months Periods Ended June 30, 2020 and 2019(Millions of Mexican Pesos)

Change

2Q20 1Q20 2Q19 QoQ % YoY % 6M20 6M19 %

Key Ratios

Profitability & Efficiency

NIM after Provisions Excl. Fees (1) 11.4% 33.6% 37.1% -22.3 pp -25.7 pp 23.7% 36.6% -12.8 pp

NIM after Provisions Incl. Fees (2) 28.9% 40.1% 42.7% -11.2 pp -13.8 pp 36.3% 42.4% -6.1 pp

Provisions / Financial Margin 75.1% 30.6% 29.1% 44.5 pp 46 pp 51.9% 29.1% 22.8 pp

ROAA (3) (1.7%) 2.1% 2.9% 0.2% 2.5% -2.3 pp

ROAE (4) (4.8%) 6.1% 8.3% 0.6% 7.1% -6.5 pp

Efficiency Ratio Incl. Provisions (5) 105.7% 93.7% 87.3% 12 pp 18.4 pp 98.7% 88.5% 10.2 pp

Efficiency Ratio Excl. Provisions (6) 48.4% 68.5% 64.3% -20.1 pp -15.9 pp 57.9% 65.3% -7.4 pp

Operating Efficiency (7) 21.8% 27.0% 26.6% -5.2 pp -4.9 pp 26.2% 26.7% -0.5 pp

Fee Income (8) 5.0% 8.4% 9.7% -3.4 pp -4.7 pp 7.0% 9.5% -2.5 pp

Capitalization

Equity to Total Assets 38.5% 33.7% 35.2% 4.8 pp 3.3 pp 38.5% 35.2% 3.3 pp

Credit Quality Ratios

NPL Ratio (9) 5.6% 5.3% 6.1% 0.4 pp -0.5 pp 5.6% 6.1% -0.5 pp

Coverage Ratio (10) 217.7% 121.4% 108.0% 96.3 pp 109.7 pp 217.7% 108.0% 109.7 pp

Operating Data

Number of Clients 480,668 533,232 587,302 -9.9% -18.2% 480,668 587,302 -18.2%

- Financiera Independencia 245,032 263,762 300,928 -7.1% -18.6% 245,032 300,928 -18.6%

- Finsol México 78,543 96,172 104,332 -18.3% -24.7% 78,543 104,332 -24.7%

- Finsol Brazil 29,445 33,103 37,719 -11.1% -21.9% 29,445 37,719 -21.9%

- Apoyo Económico Familiar 99,980 109,747 116,017 -8.9% -13.8% 99,980 116,017 -13.8%

- Apoyo Financiero Inc 27,668 30,448 28,306 -9.1% -2.3% 27,668 28,306 -2.3%

Number of Offices 531 531 533 0.0% -0.4% 531 533 -0.4%

Total Labor Force 6,848 7,818 7,892 -12.4% -13.2% 6,848 7,892 -13.2%

(3) ROAA: Net Income / Average Total Assets

(4) ROAE: Net Income / Average Total Equity

(5) Eff iciency Ratio: Non-Interest Expense / Net Operating Revenues

(6) Eff iciency Ratio: Non-Interest Expense / Net Operating Revenues + Provision for Loan Losses

(7) Operating Eff iciency: Non-interest Expense / Average Assets

(8) Commissions and Fees (Net) / Net Operating Revenue

(9) NPL Ratio: Non-Performing Loans / Total Loan Portfolio

(10) Coverage Ratio: Allow ances for Loan Losses / Non-Performing Loans

(1) Net Interest Margin after Provisions (excluding Fees): Net Interest Margin after Provision for Loan Losses / Average

Interest-Earning Assets

(2) Net Interest Margin after Provisions (including Fees): Net Interest Margin after Provision for Loan Losses + Fees

Collected - Fees Paid / Average Interest-Earning Assets

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Financiera Independencia 2Q20 Results · Loan Portfolio of Ps.8,226.2 million, a 2.3% decrease YoY....

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