quarterly report - fhipofhipo.com/en/pdf/reporte trimestral 2t15 english vf.pdf · quarterly report...

EARNINGS REPORT 2Q15

INVESTOR RELATIONS

Daniel Braatz / CFO [email protected]

Xavier Martínez / IRO [email protected]

Ph: +52 (55) 4744-1100 www.fhipo.com

[email protected]

Quarterly Report

Investment that Transforms

[THE FOLLOWING TRANSLATION IS FOR

CONVENIENCE PURPOSES ONLY]

Earnings Report 2Q15

2 PAGE

FHipo continues in the consolidation process of its mortgage portfolio during the second quarter of 2015, reaching a net income of Ps. $182.5 million.

Mexico City, Mexico, July 27th, 2015 - Banco Invex, S.A., Institución de Banca Múltiple, Grupo Financiero Invex or Fideicomiso Hipotecario ("FHipo") "BMV: FHIPO), announces its second quarter results concluding June 30th, 2015. The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") and published on the Mexican Stock Exchange ("BMV").

Relevant Information as of the 2Q15

The Net Income obtained during the second quarter of 2015 was of Ps. $182.5 million, and in accordance with our 95% distribution policy, the Net Income to distribute is of Ps. $173.4 million.

Earnings per Certificado Bursátil Fiduciario Inmobiliario or CBFI (EPS) during the 2Q15 of Ps. $0.529. The Financial Margin of the 2Q15 was of Ps. $246.7 million and represents 100% of the interest income

obtained during the quarter. The annualized Net Interest Margin (NIM) was 12.3%. As of June 30th 2015, FHipo does not have any debt obligations, therefore, the cost of funding for the quarter

was Ps. $0.0. The net mortgage portfolio reached Ps. $7,540.8 million as of 2Q15. This portfolio consists of 26,997 loans

and considers allowance for loan losses of Ps. $39.3 million. As of June 30 th 2015, there are no non-performing loans. The accumulated efficiency ratio of FHipo as of June 30 th, 2015 was 21.6%. The return on equity (ROE) obtained by FHipo during the quarter was 9.0% annualized, based on the Net

Income of the 2Q15.

Summary of Key Financial Metrics

Figures are presented according to each metric (%, $) 2Q15 YTD 2015

Financial Margin and Interest Revenues

Financial Margin - "interest revenue - interest expense / total interest revenue" 100.0% 100.0%

Net Interest Margin (NIM)(1) - "interest revenue - interest expense / net mortgage loans" 12.3% 12.0%

Efficiency Metrics

Efficiency Ratio - "total expenses / total revenue" 23.4% 21.6%

Allowance for loan Losses / Total Mortgage Loans (2)0.52% 0.52%

Returns and Profits

Earnings per CBFI (EPS)(3) - "net income / number of CBFIs" $0.529 $1.030

Return on Assets (ROA)(1) - "net income / total assets" 8.9% 8.6%

Return on Equity (ROE)(1) - "net income / total equity" 9.0% 8.7%

Other Metrics

Non-performing Loans / Net Portfolio 0.0% 0.0%

Note (1): Annual ized cons idering effective days of operation in the quarter, and accumulated in the year.

(2): Tota l mortgage loans excludes a l lowance for loan losses .

(3): Amount in Mexican Pesos .


3 PAGE

Message from the Chief Executive Officer

Dear Investor,

The second quarter of 2015 was a period devoted to the consolidation of the vehicle. FHipo is a young company that

anticipates significant growth for the coming years, during this quarter we focused in the execution of our business

plan and the positioning of the company to be successful within the Mexican mortgage market. We have continued

acquiring, originating, co-participating, and managing mortgage portfolios with the main objective of creating a unique

opportunity for public investors to invest in the mortgage market, thereby expanding their investment frontier.

We believe we have proved the potential to achieve organic growth of our mortgage portfolio, and the capacity to

generate attractive distributions in the short and medium term. We have initiated efforts to materialize the leverage

of our vehicle in the second half of the year and, as it is shown in this report, we are close to concluding with the

deployment of the proceeds we obtained in our Global Offering.

FHipo continues to consolidate, in accordance with expectations and objectives set by the management team. As of

the 2Q15, we have invested 88.5% of our equity in mortgage loans, surpassing our targeted goals. The loans that

conform our portfolio today represent a limited and diversified risk, with a real average interest rate of 9.61% in loans

denominated in Times Minimum Wage ("VSM") and a nominal interest rate of 12.00% for those mortgages originated

in Pesos.

Our mortgage loan portfolio maintains attractive yields, with an annualized return on assets (ROA) of 8.9% and an

annualized return on equity (ROE) of 9.0% during the quarter. Moreover, in the 2Q15 we obtained a net income

subject to distribution per CBFI (EPS) of Ps. $0.529 which results, after applying our distribution policy of 95% on such

income, in a distribution per CBFI of Ps. $0.503.

Finally, we participated in the auction of the Infonavit Más Crédito Program, in which we were assigned Ps. $6,000

million in mortgage loans, which the Infonavit expects to originate during the next 18 months, nearly 40% of the

auctioned amount. This event will add value to FHipo’s mortgage portfolio by diversifying it, while at the same time

increasing the origintation capacity of the vehicle. The origination of these loans will begin midway through the third

quarter of 2015.

Thank You.

Sincerely,

Alfredo Vara


4 PAGE

Our participation with the Infonavit

On August 13th 2014, FHipo celebrated an "Initial Assignment Agreement" with the Instituto del Fondo Nacional de la

Vivienda para los Trabajadores or "Infonavit", a social service agency of the Mexican government, dedicated among

other things, to finance mortgages. Infonavit is the leading mortgage originator in Mexico and one of the largest

mortgage providers in Latin America, with a balance of more than six million mortgage loans.

Infonavit’s operations are financed mainly by payments, by the workers, of principal and interests of the mortgage

loans granted by the Infonavit through payroll deductions which the employer carries out by transferring to the

Infonavit, as well as by the mandatory contributions made by employers to the National Housing Fund for an amount

that is currently equivalent to 5% of the salary of each worker at service.

Currently FHipo participates in two Programs within the Institute; “Infonavit Total” and “Infonavit Más Crédito”. In

which FHipo acquires a percentage of each mortgage loan originated by the Infonavit under each program. The

Infonavit Total Program exists in Mexico since 2008, in which 6 financial institutions participate. As of June 30 th 2015

FHipo’s participation percentage per loan is equivalent to 62.31%1 (weighted average) of 26,997 mortgage loans.

As in the Infonavit Total Program, within the Infonavit Más Crédito Program FHipo acquires a percentage of each

mortgage loan, all loans offered through this program are originated in co-participation with private entities. Before

starting the mortgage origination in this program, there is a bidding process based on amount and interest rate.

Through the auction, Infonavit co-participates each originated loan to the entities, until the total projected loan

origination for a certain period is assigned, generally the private institutions assume a higher participation percentage

of each loan than that which Infonavit conserves. Once the auction concludes the daily mortgage origination begins.

Having participated in the bidding process, the past July 13th 2015, FHipo successfully achieved the assignation of Ps.

$6,000 million. It is estimated that the amount assigned will be originated during the next 18 months, strengthening

our growth through mortgages with attractive interest rates and a reduced expected loss.

Through FHipo, the Infonavit continues to strengthen their objectives presented in the housing public policy, which

plans to reduce responsibly the housing lag in Mexico, by improving and expanding existing housing, procuring the

acquisition of new homes, and promoting the participation of private capital in the origination of mortgage loans in

Mexico.

Finally the participation of FHipo jointly with the Infonavit will continue improving the development of the mortgage

industry in Mexico, offering greater dynamism by creating new products, increasing the liquidity of the secondary

mortgage market as well as financing unattended sectors through the participation of different institutions.

1 The co-participated percentage has evolved positively in accordance with monthly origination and the income levels of our borrower’s.


5 PAGE

Operation Results

Interest Income… amounted to Ps. $246.7 million during the 2Q15. Revenues consider accrued interest of the

mortgage loan portfolio, the indexation to the minimum wage on outstanding balances of our mortgage loans

denominated in VSM, the returns obtained from investments in securities and repurchase agreements or repos, and

the gains on securities valuation. The interest income and indexation of the mortgage loan portfolio amounted to Ps.

$236.6 million, while the income from our investments in securities were Ps. $10.1 million.

Interest Expense… was nonexistent, since FHipo did not have any debt obligations by the end of the period.

The Financial Margin… in the 2Q15 amounted to Ps. $246.7 million and represents 100% of total interest income.

The Allowance for Loan Losses… recognized in the 2Q15 resulted in Ps. $8.4 million. The balance of the estimation for loan losses in the Balance Sheet as of June 30 th 2015 amounted to Ps. $39.3 million.

The Advisory, Administration, and Servicing Expenses… amounted to Ps. $51.9 million during 2Q15, which represent 21.0% of total interest income, without considering the allowance for loan losses. These expenses include advisory,

(In Thousands of Mexican Pesos, except Net Income per CBFI) 2Q15 YTD 2015

REVENUES

Financial margin $246,669 $483,418

(-) Allowance for loan losses (8,395) (30,266)

TOTAL REVENUES, NET 238,274 453,152

TOTAL EXPENSES (55,777) (97,666)

NET INCOME $182,497 $355,486

NET INCOME PER CBFI $0.529 $1.030

COMPRENHESIVE INCOME

Net income $182,497 $355,486

Other Comprenhesive income (48) 720

TOTAL COMPRENHENSIVE INCOME 182,449 356,206

95.9%

4.1%

Interest Income

Interests fromMortgage Loans

Income fromInvestments inSecurities

88.5%

10.0%

1.5%

Equity invested in Mortgage Loans as % of Assets

Mortgages Loans

Government Securities

Other Assets andAccounts Receivables


6 PAGE

administration, and collection service fees received from the Infonavit and Concentradora Hipotecaria during the quarter.

The Net Income… of the 2Q15 amounted to Ps. $182.5 million, representing 74.0% of the total interest income of the same period. The aforementioned translates into a net income per CBFI of Ps. $0.529.

Balance Sheet

Total Assets… as of June 30th 2015 amounted to Ps. $8,519.2 million. The assets of FHipo are mainly comprised of: i) net mortgage loan portfolio amounting to Ps. $7,540.8 million, which represent 88.5% of the total assets; and ii) cash equivalents amounting to Ps. $851.8 million which represent 10.0% of the total assets.

The Mortgage Loan Portfolio… co-participated with Infonavit within the Infonavit Total Program is comprised of 26,997 mortgage loans as of June 30 th 2015. During the 2Q15 FHipo co-participated 2,881 loans.

During the 2Q15, FHipo acquired mortgage loans amounting to Ps. $868.6 million, of which principal amortizations resulted in Ps. $148.9 million. We conducted mortgages reimbursements of those loans that did not meet the eligibility criteria, in the amount of Ps. $107.8 million to the Infonavit. The aforementioned results in a current loan portfolio balance of Ps. $7,356.3 million. Furthermore, as of June 30th 2015 the accrued interest receivable amounted to Ps. $120.2 million and the indexation of VSM denominated loans is of Ps. $103.6 million, resulting in a total mortgage loan portfolio of Ps. $7,580.1 million.

As of June 30th 2015, the allowance for loan losses is of Ps. $39.3 million; which was determined by an estimated loss model for the following 12 months, which by reducing this amount to the total loan portfolio, results in a net mortgage loan portfolio of Ps. $7,540.8 million.

(In Thousands of Mexican Pesos) 2Q15

ASSETS

Cash equivalents and debt securities $851,836

Mortgage loans, net 7,540,773

Accounts receivables and other assets 126,622

TOTAL ASSETS $8,519,231

LIABILITIES AND EQUITY

TOTAL LIABILITIES $83,859

TOTAL EQUITY 8,435,372 0

TOTAL LIABILITIES AND EQUITY $8,519,231


7 PAGE

Summary of Mortgage Portfolio

Portfolio (millions) # of Mortgage

Loans Average LTV Average interest

rate VSM Average interest rate in

Pesos Non-Current

Portfolio

Ps. $7,356,2812 26,997 82.20% 9.61% 12.00% (nominal) 0.00%

Non-Current Portfolio… as percentage of the total loan portfolio registered by the end of the 2Q15 is of 0.0%.

The Allowance for Loan Losses… as of 2Q15 was Ps. $39.3 million; determined based on the estimated loss model 12 months forward-looking, in accordance with IFRS.

Other Receivables… amounted to Ps. $126.6 million in the 2Q15, and correspond mainly to amortizations and interest effectively collected from the borrowers, which Infonavit has not yet transferred to FHipo, and mortgage loans returned to Infonavit.

The Total Equity… amounts to Ps. $8,435.4 million, and consists of the amounts obtained from the Global Offering of CBFIs made in November 2014, net of issuance costs, retained earnings and net income obtained in the 2Q15.

Development of our Key Financial Ratios

2 Balance of FHipo’s current portfolio, excluding accrued interest and indexation on times minimum wage (VSM) denominated loans.

100.0%

5.7%

15.0%

4.8% 4.8%

0.0%100.0%

12.0%

19.5%

8.5% 8.6%

0.0%100.0%

12.3%

23.4%

8.9% 9.0%

0.0%

Financial Margin Net Interest Margin Efficiency Ratio Return on Assets(ROA)

Return on Equity(ROE)

Non-current Loans /Net Portfolio

4Q14 1Q15 2Q15


8 PAGE

Portfolio Composition

The following table details the mortgage portfolio of FHipo as of June 30th, 2015.

Note: All data is consolidated (sum of mortgages denominated in Pesos and mortgages denominated in Times Minimum Wage “VSM”), except when indicated.

(1) For every loan originated in the Infonavit Total Program, FHipo maintains a % of the participation while the Infonavit keeps the remaining %. As of June 30th 2015, FHipo maintained a 62.31% participation (weighted average).

(2) Weighted average.

(3) VSM means times minimum wage, which is the index calculated by multiplying the current daily minimum wage of Mexico City (2015 - Ps. $70.1) by the average number of days in a month, each year (30.4).

(4) The entire portfolio denominated in Pesos has a fixed nominal interest rate of 12.00%.

(5) Balance of current portfolio, excluding accrued interest and indexation on times minimum wage (VSM) denominated loans.

Total Balance Ps. $11,805 million

FHipo's Participation Ps. $7,356 million (1) (5)

Total Number of Loans (VSM and Pesos-denominated) 26,997

VSM-denominated Loan Balance (3) Ps. $6,214 million (84.5% of Total Portfolio)

Number of VSM-denominated Loans (3) 24,415

Peso-denominated Loan Balance Ps. $1,142 million (15.5% of Total Portfolio)

Number of Peso-denominated Loans 2,582

Average Loan Balance Ps. $272,485 (1) (5)

Average Interest Rate of VSM-denominated Loans (2) (3) 9.61%

Average Interest Rate of Peso-denominated Loans (2) 12.00% (Nominal) (4)

Loan-to-Value at Origination (LTV) (2) 82.20%

Payment-to-Income (PTI) (2) 24.09%

Number of Employers 10,132

% of Co-participated Loans with Payroll Deduction 100.00%

Performing Portfolio 100% (0.00% NPL's)

13.1%

8.9%

16.9%61.1%

≤ 65 %

65 - 74.9 %

75 - 84.9 %

85 - 95%

Distribution by Borrower’s Salary in VSM

(as % of total loans in the portfolio)

Distribution by Loan-to-Value (LTV) at loan origination date (as % of total loans in the portfolio)

26.7%

9.5%

8.8%7.2%

47.8%

4.5 - 6.9

7.0 - 7.9

8.0 - 8.9

9.0 - 9.9

≥ 10.0


9 PAGE

(1) VSM means times minimum wage, which is the index calculated by multiplying the current daily minimum wage of Mexico City (2015 - Ps. $70.1) by the average number of days in a month, each year (30.4). (2) Corresponds to portfolio denominated in VSM; the entire portfolio denominated in Pesos has a fixed nominal interest rate of 12.00%.

Number and Value of Mortgage Loans(number of loans and total value of originated mortgages)

26,997 $7,356

# of Total Loans MXN$ (millons)

Total Accumulated Loans.Co-Participated by FHipo as of June 30th 2015.

2.1%

23.3%

45.7%

28.9%

8.1% - 8.5% 8.6% - 9.0% 9.1% - 9.5% 9.6%-10.0%

Invested CapitalDistribution by Interest Rate in VSM


(2)(1)

(as % of total assets)

88.5%

10.0%

1.5%

Mortgages Loans

Government Securities

Other Assets andAccounts Receivable

14.7%

9.7%

7.9%5.2%

5.1%

4.8%4.7%

4.3%4.0%

3.4%3.3%

3.3%3.2%

3.0%

3.0%

20.4%

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Geographic Distribution of Portfolio

Concentration Level


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Distribution by Loan Denomination

15.5%

84.5%

Pesos

VSM



10 PAGE

Distribution to Holders

On May 14th 2015, FHipo distributed 95% of the net income obtained in the 1Q15 amounting to Ps. $164.3 million (Ps.

$0.476 per CBFI).

In accordance with our distribution policy, FHipo plans to distribute to the holders, for the period comprised from

April 1st 2015 to June 30th 2015, Ps. $0.503 per CBFI which represents 95% of the Net Income of the second quarter of

2015.

Performance of our Distribution per CBFI and EPS

$0.153

$0.476 $0.503

$0.160

$0.501 $0.529

4Q14 1Q15 2Q15

Distribution per CBFI Earnings per Share (EPS)


11 PAGE

Leverage

As of June 30th 2015, FHipo did not have debt obligations, all funds used for its operations are those obtained in the

Global Offering, therefore, the debt coverage ratio does not apply in the absence of payment obligations.

Relevant Events during the 2Q15

FHipo makes available to its Investors the Report about the Accrued Interests corresponding to the month of

March 2015 (April 17th, 2015)

- The total accrued interests during the period composed from March 1st 2015 to March 31st 2015 was Ps.

$57,280,202.32. .

FHipo informs that on May 14th 2015, the Distribution corresponding to the First Quarter of 2015 will take place

(May 6th, 2015)

- FHipo informs that on May 14th 2015, the distribution of $0.4763505142028986 pesos per CBFI will take

place. This distribution corresponds to the first quarter of 2015 and it is 100% (hundred percent) interest

distribution.

FHipo makes available to its investors the Report about the Accrued Interests corresponding to the month of April

2015 (May 18th, 2015)

- The total accrued interests during the period composed from April 1st 2015 to April 30th 2015 was Ps.

$57,590,311.43.

FHipo makes available to its investors the Report about the Accrued Interests corresponding to the month of May

2015 (June 16th, 2015)

- The total accrued interests during the period composed from May 1st 2015 to May 31st 2015 was Ps.

$58,808,464.37.

Assemblies and Committees held during the 2Q15

- Celebration of the Second Ordinary Holder’s Meeting (April 21st, 2015)

- Celebration of the Fourth Ordinary Session of the Technical Committee (April 16th, 2015)

- Celebration of the Fifth Ordinary Session of the Technical Committee (April 27th, 2015)


12 PAGE

Analysts Coverage

Credit Suisse Casa de Bolsa México, S.A. de C.V. Morgan Stanley Casa de Bolsa México, S.A. De C.V. Nau-Securities Limited

Institution Equity Research

Analyst Initial

Recommendation Current Target

Price

Credit Suisse Vanessa Quiroga Outperform Ps. $30.00

Morgan Stanley Nikolaj Lippman Overweight Ps. $28.00

Nau-Securities Iñigo Vega Neutral Ps. $28.30

About FHipo

FHipo is the first real estate investment trust established to acquire, originate, co-participate, and manage mainly mortgage portfolios, providing capital gains linked to the mortgage returns and contributing to the financing and development of the housing sector in Mexico. Our portfolio is composed by residential mortgages in Mexico with an attractive risk-reward ratio. The current portfolio uses Infonavit’s origination and servicing platform, allowing access for collection through payroll deduction, serving as a primary servicer of mortgage portfolios, in addition Concentradora Hipotecaria has developed together with Concord Servicing a proprietary technological platform. Through FHipo, investors can access the residential mortgage market in Mexico and benefit from the liquidity of an instrument listed on the BMV.

DISCLAIMER

This press release may contain forward-looking statements based on the current expectations of FHipo. Actual future events or results could differ materially from these statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.


13 PAGE

Our Committees at the 2Q15

Technical Committee

Non-independent members Alfredo Vara Daniel Braatz J. Jesús Gómez

Independent Members Daniel Reséndiz Diego A. Dayenoff James Edward Walker José Vicente Corta Fernández Margarita de la Cabada Sebastián Fernández Cortina

Audit Committee Daniel Reséndiz Carillo Margarita de la Cabada Sebastián Fernández Cortina

Practice Committee

Daniel Reséndiz Carillo José Vicente Corta Fernández Margarita de la Cabada

Nominations Committee

Daniel Reséndiz Carillo José Vicente Corta Fernández Margarita de la Cabada


14 PAGE

Conference Call with Investors

FHipo will hold its conference call with investors on July 28th, 2015 at 8:00 a.m., Mexico City time (CST), to discuss the financial results of the 2Q15. To participate in the conference, please call 1-888-503-8169 (USA & Canada) or 1-719-325-2495 (International & Mexico) with the conference code 5052720 approximately 10 minutes before the call starts. The call will be recorded and filed on the web page of www.fhipo.com in the Investor Relations section.

Investor Relations Daniel Braatz / CFO / [email protected] Xavier Martínez / IRO / [email protected] Ph: +52 (55) 4744-1100 [email protected] www.fhipo.com Address: Juan Salvador Agraz 65, Piso 9 B, Lomas de Santa Fe, Del. Cuajimalpa, C.P. 05300, Mexico, D.F.

http://www.fhipo.com/


15 PAGE

Appendix – Balance Sheet

FIDEICOMISO F/2061 FHipo

Statement of Financial Position as of June 30, 2015

(In Thousands of Mexican Pesos)

2Q15

ASSETS

Cash and cash equivalents $141,378

Debt securities 710,458

Current mortgage loans 7,356,281

Accrued interest 120,251

Indexation on mortgage loans 103,586

Allowance for loan losses (39,345)

Mortgage loans, net 7,540,773

Accounts receivables and other assets 126,622

TOTAL ASSETS $8,519,231

LIABILITIES

Accounts payables and accrued expenses $58,505

Deferred income from indexation on mortgage loans 25,354

TOTAL LIABILITIES $83,859

EQUITY

Common stock, net $8,249,130

Retained earnings 186,242

TOTAL EQUITY $8,435,372

TOTAL LIABILITIES AND EQUITY $8,519,231


16 PAGE

Appendix – Income Statement


Income Statement

(In Thousands of Mexican Pesos, except Net Income per CBFI)

2Q15 YTD 2015

REVENUES

Interests on mortgage loans $236,551 $445,510

Investment income 10,118 37,908

Total net interest income 246,669 483,418

Financing interest expenses 0 0

Financial margin 246,669 483,418

(-) Allowance for loan losses (8,395) (30,266)

TOTAL REVENUES, NET $238,274 $453,152

EXPENSES

Management and collection fee (51,856) (89,696)

Other administrative expenses (3,921) (7,970)

TOTAL EXPENSES (55,777) (97,666)

NET INCOME $182,497 $355,486

NET INCOME PER CBFI $0.529 $1.030

COMPRENHESIVE INCOME

Net income $182,497 $355,486

Other Comprenhesive income (48) 720

TOTAL COMPRENHENSIVE INCOME $182,449 $356,206


17 PAGE

Appendix – Financial Ratios


Relevant Financial Metrics

Figures are presented according to each metric (%, $)

2Q15 YTD 2015

Financial Margin and Interest Revenue

Financial Margin - "interest revenue - interest expense / total interest revenue" 100.0% 100.0%

Adjusted Financial Margin - "adjusted by allowance for loan losses ("ALL")" 96.6% 93.7%

Net Interest Margin (NIM)(1) - "interest revenue - interest expense / net mortgage loans" 12.3% 12.0%

Adjusted Net Interest Margin (Adj. NIM)(1) - "adjusted by allowance for loan losses " 11.9% 11.2%

Efficiency Metrics

Operational Efficiency Ratio (incl. Allowance for Loan Losses) - "total expenses incl. ALL / total interest revenue" 26.0% 26.5%

Operational Efficiency Ratio (excl. Allowance for Loan Losses) - "total expenses excl. ALL / total interest revenue" 22.6% 20.2%

Efficiency Ratio - "total expenses / total operating revenue" 23.4% 21.6%

Allowance for loan Losses / Total Mortgage Loans (2)0.52% 0.52%

Returns and Profits

Earnings per CBFI (EPS)(3) - "net income / number of CBFIs" $0.529 $1.030

Return on Assets (ROA)(1) - "net income / total assets" 8.9% 8.6%

Return on Equity (ROE)(1) - "net income / total equity" 9.0% 8.7%

Other Metrics

Cash and Cash Equivalents / Total Assets 10.0% 10.0%

Non-performing Loans / Net Portfolio 0.0% 0.0%

Allowance for loan Losses / Non-current Loans NA NA

Note (1): Annual ized cons idering effective days of operation in the quarter, and accumulated in the year.

(2): Tota l mortgage loans excludes a l lowance for loan losses .

(3): Amount in Mexican Pesos .


18 PAGE

Appendix – Stratification Analysis

Note: VSM means times minimum wage, which is the index calculated by multiplying the current daily minimum wage of Mexico City (2015 - Ps. $70.1) by the average number of days in a month, each year (30.4). (1) The entire portfolio denominated in Pesos has a fixed nominal interest rate of 12.00%. (2) Weighted average. (3) Corresponds to portfolio denominated in VSM; the entire portfolio denominated in Pesos has a fixed nominal interest rate of 12.00%.

Strat Analysis of the Portfolio

Loan Denomination

Average Interest Rate (1) (2)

Number of

Loans % of Total Loans Balance in Pesos % of Total Balance in Pesos Balance in VSM % of Total Balance in VSM

Pesos 12.00% 2,582 9.56% 1,141,732,659$ 15.52% 535,763 15.52%

VSM 9.61% 24,415 90.44% 6,214,548,341$ 84.48% 2,916,204 84.48%

Total 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

By Loan Denomination

Worker's Salary

Number of


4.50 - 6 VSM 3,753 13.90% 636,800,058$ 8.66% 298,821 8.66%

6.01 - 7 VSM 3,458 12.81% 603,961,214$ 8.21% 283,411 8.21%

7.01 - 8 VSM 2,561 9.49% 591,666,412$ 8.04% 277,642 8.04%

8.01 - 9 VSM 2,378 8.81% 592,041,928$ 8.05% 277,818 8.05%

9.01 - 10 VSM 1,942 7.19% 635,727,967$ 8.64% 298,318 8.64%

> 10.01 VSM 12,905 47.80% 4,296,083,422$ 58.40% 2,015,956 58.40%

Total 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

By Worker's Salary

Interest Rate

Number of


8.50% 511 2.09% 86,099,212$ 1.39% 40,402 1.39%

8.6% - 9.0% 5,700 23.35% 1,020,084,188$ 16.41% 478,679 16.41%

9.1% - 9.50% 11,164 45.73% 2,583,504,411$ 41.57% 1,212,321 41.57%

9.6% - 10.0% 7,040 28.83% 2,524,860,531$ 40.63% 1,184,802 40.63%

Total 24,415 100.00% 6,214,548,341$ 100.00% 2,916,204 100.00%

By Interest Rate in VSM (3)

Months Past Due

Number of


0 months (current) 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

3 months 0 0.00% -$ 0.00% 0 0.00%

6 months 0 0.00% -$ 0.00% 0 0.00%

+ than 1 year 0 0.00% -$ 0.00% 0 0.00%

Total 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

By Months Past Due

Loan to Value (LTV)

Number of


<60 % 2,815 10.43% 690,041,239$ 9.38% 323,805 9.38%

60.01 - 70 1,703 6.31% 495,918,023$ 6.74% 232,712 6.74%

70.01 - 80 3,334 12.35% 925,494,241$ 12.58% 434,292 12.58%

80.01 - 90 6,312 23.38% 1,759,411,645$ 23.92% 825,612 23.92%

90.01 - 95 12,833 47.53% 3,485,415,852$ 47.38% 1,635,547 47.38%

Total 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

By Loan to Value (LTV)


19 PAGE

Appendix – Stratification Analysis Cont.

Note: VSM means times minimum wage, which is the index calculated by multiplying the current daily minimum wage of Mexico City (2015 - Ps. $70.1) by the average number of days in a month, each year (30.4).

Strat Analysis of the Portfolio Cont.

Loan Regime

Number of


Ordinary Amortization Regime (ROA) 26,359 97.64% 7,189,507,044$ 97.73% 3,373,708 97.73%

Special Amortization Regime (REA) 177 0.66% 47,078,879$ 0.64% 22,092 0.64%

Extension 461 1.71% 119,695,077$ 1.63% 56,167 1.63%

Total 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

By Loan Regime

Total Current Balance

Number of


Less than or equal to 100 VSM 11,718 48.00% 2,045,473,819$ 32.91% 959,848 32.91%

100.01 - 200 VSM 10,691 43.79% 3,026,531,857$ 48.70% 1,420,214 48.70%

200.01 - 300 VSM 1,545 6.33% 786,464,087$ 12.66% 369,052 12.66%

300.01 - 400 VSM 354 1.45% 253,713,088$ 4.08% 119,056 4.08%

>400 VSM 107 0.44% 102,365,490$ 1.65% 48,035 1.65%

Total 24,415 100.00% 6,214,548,341$ 100.00% 2,916,204 100.00%

By Total Current Blanace - VSM

Total Current Balance

Number of


<200 thousand Ps. 290 11.23% 46,735,266$ 4.09% 21,931 4.09%

200.1 thousand Ps. -- 400 thousand Ps. 962 37.26% 287,975,327$ 25.22% 135,134 25.22%

400.1 thousand Ps. -- 600 thousand Ps. 779 30.17% 385,080,098$ 33.73% 180,701 33.73%

>600.1 thousand Ps. 551 21.34% 421,941,968$ 36.96% 197,998 36.96%

Total 2,582 100.00% 1,141,732,659$ 100.00% 535,763 100.00%

By Total Current Blanace - Pesos

Worker's Age

Number of


Less than or equal to 25 years 2,722 10.08% 625,574,146$ 8.50% 293,553 8.50%

25.1 - 30 years 9,578 35.48% 2,538,136,786$ 34.50% 1,191,032 34.50%

30.1 - 35 years 6,972 25.83% 2,014,201,861$ 27.38% 945,173 27.38%

35.1 - 40 years 3,922 14.53% 1,159,209,984$ 15.76% 543,964 15.76%

40.1 - 45 years 2,024 7.50% 556,178,480$ 7.56% 260,989 7.56%

45.1 - 50 years 1,101 4.08% 291,056,589$ 3.96% 136,580 3.96%

50.1 - 55 years 461 1.71% 113,581,601$ 1.54% 53,299 1.54%

55.1 - 60 years 200 0.74% 54,276,094$ 0.74% 25,469 0.74%

60.1 - 65 years 17 0.06% 4,065,459$ 0.06% 1,908 0.06%

Total 26,997 100.00% 7,356,281,000$ 100.00% 3,451,968 100.00%

By Worker's Age

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