Financiera Independencia B de C SOFOM E N R : closed 2020 with a healthy financial position ready to resume its growth path with a strengthened business model

Financiera Independencia4Q20 Results

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Iván Barona González

Investor Relations Officer

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Financiera Independencia

4Q20

For immediate release

Financiera Independencia closed 2020 with a healthy financial position ready to resume its growth path with a strengthened business model

•  As a result of the strategy to mitigate risks inherent to COVID-19 context, 4Q20 closed with a stabilized loan portfolio, solid collections, improved quality in loan origination, lower debt, and higher solvency, among other positive indicators, which show the Company's solid position and sets the Company on the right track to expand as market conditions improve.

•  With the objective of consolidating its competitive advantages and enhancing its leadership in the individual loan sector, Financiera Independencia decided to sell Finsol Mexico's loan portfolio, as well as its subsidiary Fisofo. As such, 4Q20 results reflect some non-recurring items related these operations. Fisofo's sale will take place once COFECE's grants the pertaining

  authorization.

•  Total Loan Portfolio of Ps. 7,015.5 million, a 10.3% decrease vs 3Q20; if Ps. 587.8 million of Finsol Mexico's loans are not considered, the decrease observed in the quarter is of 3%, 2 percentage points less than the 5% contraction observed between 3Q20 and 2Q20.

•  NPL Ratio of 5.1%, 210bp below the 7.2% posted during 3Q20. The Company closes the year with pre-COVID levels of asset quality.

•  Net Interest Income of Ps.880.4 million, 11.5% below 3Q20 and 24.9% lower than 4Q19. The NII for the twelve-month period was Ps.4,097.3 million, a 10.3% decrease versus 2019.

•  Provision for loan losses of Ps. 279.5 million, 27.1% below 3Q20. The provision for loan losses for the twelve-month period was Ps.1,816.7 million, a 28.3% increase versus 2019.

•  Non-interest expense of Ps. 1,250.2 million in 4Q20. When excluding the effects related to Finsol and provisions and expenses related to Fisofo's sale process, non-interest expenses for 4Q20 stand 18% below the ones posted in 4Q19, on a pro-forma basis.

•  Net operating loss of Ps. 383.6 million in 4Q20. When excluding Finsol Mexico's and Fisofo's effects, we reach a Ps.107.2 million Net operating profit.

•  Net loss of Ps. 396.1 million in 4Q20 and of Ps. 412.7 million for the twelve-month period. When excluding Finsol Mexico's and Fisofo's related expenses the 4Q20 net profit stands at Ps.83 million, which ranks as the second highest fourth quarter in the last ten years.

•  Liabilities reduction of 9.7% vs. 3Q20 and of 19.8% with respect to 4Q19.

•  Equity to Total Assets of 37.7%, 330 bps greater than 4Q19.

Mexico City, February 18th, 2021.- 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 of both the formal and informal economy, announces results for the three and twelve month period ended December 31st, 2020.

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

"We closed 2020 with a healthy financial situation, and we are prepared to grow our business with a strengthened business model."

"In 4Q20 we stabilized the Company's loan portfolio and released pressure from non-performing loans that increased amid the COVID-19 environment. The results for the year are affected by the sale of the portfolio of Finsol Mexico that we completed in October 2020; when we take out those effects, we see recovery signs in the performance of our lending activity in Mexico, the US, and Brazil, which confirms that our strategy was successful."

Financial & Operational Highlights

4Q20	4Q19	%	12M20	12M19	%
Income Statement Data
Net Interest Income after Provisions*	600.9	789.2	-23.9%	2,280.6	3,154.2	-27.7%
Net Operating Income (Loss)*	(383.6)	125.5	-400.0	451.4
Net Income (Loss)*	(396.1)	97.4	-412.7	323.9
Total Shares Outstanding (million)	337.5	337.5	0.0%	337.5	337.5	0.0%
Earnings (Loss) Per Share	(1.1736)	0.2885	(1.2227)	0.9598
Profitability & Efficiency
NIM before Provisions Excl. Fees	42.9%	51.2%	-8.3 pp	47.9%	51.0%	-3.2 pp
NIM after Provisions Excl. Fees	29.3%	34.5%	-5.2 pp	26.7%	35.2%	-8.6 pp
NIM after Provisions Incl. Fees	42.2%	42.2%	0 pp	37.4%	41.4%	-4 pp
ROA	(14.2%)	3.1%	(3.6%)	2.6%
ROE	(37.4%)	9.0%	(9.9%)	7.6%
Efficiency Ratio Incl. Provisions	144.3%	87.0%	57.3 pp	112.5%	87.8%	24.7 pp
Efficiency Ratio Excl. Provisions	109.1%	62.3%	46.8 pp	71.8%	63.6%	8.2 pp
Operating Efficiency	44.8%	26.8%	17.9 pp	31.2%	26.3%	4.9 pp
Fee Income	5.8%	9.2%	-3.4 pp	6.8%	9.6%	-2.8 pp
Capitalization
Equity to Total Assets	37.7%	34.5%	3.3 pp	37.7%	34.5%	3.3 pp
Credit Quality Ratios
NPL Ratio	5.1%	5.9%	-0.8 pp	5.1%	5.9%	-0.8 pp
Coverage Ratio	191.5%	111.6%	80 pp	191.5%	111.6%	80 pp
Operational Data
Number of Clients	363,791	561,832	-35.2%	363,791	561,832	-35.2%
Number of Offices	387	532	-27.3%	387	532	-27.3%
Total Loan Portfolio*	7,015.5	8,784.5	-20.1%	7,015.5	8,784.5	-20.1%
Average Balance (Ps.)**	19,284.5	15,625.3	23.4%	19,284.5	15,625.3	23.4%
* Figures in millions of Mexican Pesos.
** Excludes Other Loans from the average calculation

4Q20 Results Ex. Non Recurring items	4Q 20	12M '20
Net Interest Income After Provision for Loan Losses 600.9 2,280.6 Net Operating Revenue 866.6 3,204.4 Intangible Assets Write-down Finsol Mx 449.7 449.7 Finsol Mx Transaction Costs and Accelerated Dep'n 85.6 85.6 Fisofo Transaction Costs 22.4 22.4 Expenses Ex. Non Recurring items Non-Interest Expense 692.5 3,046.6 Net Operating Income (Loss) Income Tax 1,250.2 3,604.3 -383.6 -399.9 12.4 49.5 Participation in the Results of Associates Net Income (Loss) 0 37.2 -396.0 -412.2 Net Operating Income (Loss) -383.6 -399.9 Finsol Mx -18.7 -127.7 Finsol Mx Intangibles 449.7 449.7 Fisofo Transaction Costs 22.4 22.4 Operating Income Ex. Finsol Mx & Fisofo 107.2 199.9 Income Tax (adj.) 24.2 93.9 Participation in the Results of Associates 0 38.2 Net Income Ex. Finsol Mx & Fisofo 83.0 144.2

4Q20 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.

The results that we report for the fourth quarter and the twelve months of 2020 reflect, the positive results of the strategies undertaken in order to strengthen the Company's competitive advantages, with which we affirm our leadership in the individual loan market, as well as the adjustments made to protect the Company in the challenging environment brought by the COVID-19 pandemic. The results also reflect the loan portfolio stabilization and risk management process related to the temporary relief programs that we offered on a selective basis during the second quarter. Finally, the results include the effects of the sale of the group loan portfolio of Finsol Mexico, and the some costs related to the sale process of Fisofo.

The Company posted a quarterly net loss of Ps. 396.1 million and of Ps. 412.7 million for the twelve-month period of 2020. These results include a net loss of Ps. 91.1 million in Finsol Mexico and a Ps. 450 million (Pre Tax) write down of intangible assets related to this portfolio sale.

In 4Q20 the Company posted an important contraction on its non-performing loans ratio (NPLs) from 7.2% in 3Q20 to 5.1% in 4Q20 on a consolidated basis. This figure, is also below the 5.9% reported in 4Q19. This shows good risk management performance, based on a close follow-up in loan collections; loan originations made with stricter criteria and prudential reserves for write offs. The coverage ratio in 4Q20 is 80 percentage points greater than in 4Q19, increasing from 111.6% to 191.5% YoY.

The loan portfolio decreased 20% in the year and showed signs of stabilization during 4Q20; that reduction includes the effect of Finsol Mexico's loan portfolio sale, which as of September 2020

represented 7.5% of the total loan portfolio. This contraction is consistent with the strategy and actions undertaken by the Company amid the COVID-19 environment.

The Company's financial position remained strong in 4Q20, with a solvency ratio of 37.7%, 3.2 percentage points higher than the 34.5% reported in 4Q19. Furthermore, we conducted a 17.9% reduction in long term debt and a 28.2% decline in bank and other entities loans versus 4Q19.

The Income Statement analysis is as follows:

Net Interest Income after Provision for Loan Losses

In 4Q20 Net Interest Income after Provision for Loan Losses was Ps. 600.9 million, 1.7% below 3Q20 and 23.9% below 4Q19. This amount includes the effect of a smaller income base derived from a 10% contraction in the consolidated loan portfolio during 4Q20, including the sale of Finsol Mexico's portfolio with Ps. 587.8 million of outstanding balance as of September 30.

The Net Interest Income after Provision for Loan Losses for the twelve-month period of 2020 is Ps. 2,280.6 million, a 27.7% decrease versus 2019. This figure includes the creation of prudential reserves for Ps. 441.6 million during 2Q20.

Interest Income

In 4Q20 Interest Income was Ps.1,033.4 million, that is Ps. 128.4 million below 3Q20; from this, 84% (Ps. 108.3 million) corresponds to interest income that the Company stopped receiving after Finsol Mexico's sale transaction. Interest Income for the twelve-month period of 2020 was Ps. 4,827.2 million, 10.2% less than in the twelve-month period of 2019.

As of December 31, 2020, the consolidated total loan portfolio was Ps. 7,015.5 million, which is Ps. 802.1 million less than in the previous quarter (-10.3%). About 73% of this reduction, equivalent to Ps. 587.8 million, is explained by the Finsol Mexico sale transaction; Ps. 162.5 million are explained by the individual loan portfolio reduction in Mexico; Ps. 87.2 million by a contraction in the US, and a Ps. 35.4 million portfolio growth in Brazil.

The consolidated total loan portfolio decreased Ps. 1,769.0 million (-20.1%) versus 4Q19; from that reduction, Ps. 812.0 million correspond to Finsol Mexico's loans, Ps. 694.5 million to individual loans in Mexico; Ps. 218.9 million to loans in the USA and Ps. 43.6 million to loans in Brazil.

Independencia's loan portfolio closed 4Q20 with an outstanding balance of Ps. 2,960.4 million, from those, Ps. 2,097.5 million correspond to individual unsecured loans and Ps. 862.9 million to payroll loans. The individual unsecured loan portfolio had a quarterly reduction of 4% and of 16% versus 4Q19 YoY. The payroll loan portfolio had a quarterly contraction of 4.4% and of 16.2% with respect to 4Q19 YoY. Independencia's loans represent 42% of the Company's loan portfolio.

Apoyo Economico Familiar's loan portfolio closed 4Q20 with an outstanding balance of Ps.

1,695.5 million, with a quarterly reduction of 2.0% and of 7.0% versus 4Q19 YoY. AEF's loans represent 24% of the Company's loan portfolio.

Apoyo Financiero's loan portfolio closed 4Q20 with an outstanding balance of Ps. 2,023.9 million (US$ 101.7 million), with a quarterly reduction of 4.1% and of -9.8% versus 4Q19 YoY. When the foreign exchange effect is taken out, AFI's loan portfolio grew 6.6% in 4Q20 and decreased 14.5% in the twelve-month period. AFI's loans represent 29% of the Company's loan portfolio.

Finsol Brazil's loan portfolio closed 4Q20 with an outstanding balance of Ps. 335.7 million, equivalent to 87.6 milllion reales, posting a quarterly growth of 11.8% and an 11.5% YoY contraction versus 4Q19. When the forex effect Real/MXN is taken out, Finsol Brazil's loan portfolio grew 14.5% in 4Q20 and increased 8.1% in the twelve-month period. Finsol Brazil's loans represent 5% of the Company's loan portfolio.

Table 1: Financial Margin*

% Change

4Q20	3Q20	4Q19	QoQ	YoY	12M20	12M19	%
Interest Income	1,033.4	1,161.8	1,391.6	-11.0%	-25.7%	4,827.2	5,377.1	-10.2%
Interest on Loans	1,028.2	1,157.4	1,388.4	-11.2%	-25.9%	4,807.5	5,363.3	-10.4%
Interest from Investment in Securities	5.2	4.4	3.2	18.3%	62.5%	19.7	13.7	43.4%
Interest Expense	153.1	167.2	219.3	-8.4%	-30.2%	729.9	806.8	-9.5%
Net Interest Income	880.4	994.6	1,172.4	-11.5%	-24.9%	4,097.3	4,570.3	-10.3%
Provision for Loan Losses	279.5	383.4	383.2	-27.1%	-27.1%	1,816.7	1,416.1	28.3%
Net Interest Income After Provision for Loan Losses	600.9	611.2	789.2	-1.7%	-23.9%	2,280.6	3,154.2	-27.7%
* Figures in millions of Mexican Pesos
Change

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

4Q20

% of TotalQoQ %%of Total Change

YoY %
-20.1%
-35.2%
23.4%
YoY %
% of Total	3Q20	4Q19	Change
Independencia Loans
-Formal Sector Loans	166,652	45.8%	175,808	39.3%	212,086	37.7%	-5.2%	-21.4%
- CrediInmediato	138,076	38.0%	145,714	32.6%	176,968	31.5%	-5.2%	-22.0%
- Más Nómina	28,576	7.9%	30,094	6.7%	35,118	6.3%	-5.0%	-18.6%
-Informal Sector Loans	50,682	13.9%	53,232	11.9%	69,174	12.3%	-4.8%	-26.7%
- CrediPopular	48,305	13.3%	50,721	11.4%	66,278	11.8%	-4.8%	-27.1%
- CrediMama	2,374	0.7%	2,508	0.6%	2,885	0.5%	-5.3%	-17.7%
- CrediConstruye	3	0.0%	3	0.0%	11	0.0%	0.0%	-72.7%
Finsol Loans	29,444	8.1%	96,877	21.7%	137,951	24.6%	-69.6%	-78.7%
- Finsol México	0	0.0%	67,500	15.1%	103,084	18.3%	-100.0%	-100.0%
- Finsol Brazil	29,444	8.1%	29,377	6.6%	34,867	6.2%	0.2%	-15.6%
Apoyo Económico Familiar Loans	92,255	25.4%	95,216	21.3%	111,434	19.8%	-3.1%	-17.2%
Apoyo Financiero Inc Loans	24,758	6.8%	25,690	5.7%	31,187	5.6%	-3.6%	-20.6%
Total Number of Loans	363,791	100.0%	446,823	100.0%	561,832	100.0%	-18.6%	-35.2%

Table 3: Number of Clients by Product Type

4Q20

3Q20

4Q19

QoQ %

Loan Portfolio (million Ps.) Number of Clients Average Balance (Ps.)*

7,015.5 363,791 19,284.5

7,817.6 446,823 17,496.1

8,784.5 -10.3%

561,832 -18.6%

15,625.3 10.2%

*: Excludes Other Loans

Table 4: Total Loan Portfolio by Product Type*

4Q20

% of Total

3Q20

% of Total

4Q19

QoQ %%of Total ChangeYoY % Change

Independencia Loans -Formal Sector Loan Portoflio

- CrediInmediato

2,504.0 1,641.0

- Más Nómina

862.9

35.7% 23.4% 12.3%

2,621.3 1,718.8

902.5

33.5% 22.0% 11.5%

2,982.3 1,952.7 1,029.7

33.9% 22.2% 11.7%

-4.5% -16.0% -4.5% -16.0% -4.4% -16.2%

-Informal Sector Loan Portfolio

• - CrediPopular

• - CrediMama

• - CrediConstruye

456.5 438.1 18.4 0.0

6.5% 6.2% 0.3% 0.0%

466.4 446.7 19.7 0.0

6.0% 5.7% 0.3% 0.0%

540.1 517.7 22.4 0.0

6.1% 5.9% 0.3% 0.0%

-2.1% -15.5% -1.9% -15.4% -6.6% -18.0% 0.0% 0.0%

Finsol Loans

335.7

- Finsol México

0.0

- Finsol Brazil

335.7

Apoyo Económico Familiar Loans Apoyo Financiero Inc Loans Other Loans

1,695.5 2,023.9

Total Loan Portfolio

0.0 7,015.5

4.8% 0.0% 4.8% 24.2% 28.8% 0.0%

888.1 587.8 300.3

1,730.9 2,111.1

0.0

11.4% 7.5% 3.8% 22.1% 27.0% 0.0%

1,191.2

812.0

379.3

1,822.3 2,242.8

5.8

• 100.0% 7,817.6

• 100.0% 8,784.5

13.6% 9.2% 4.3% 20.7% 25.5% 0.1% 100.0%

-62.2% -71.8% -100.0% -100.0% 11.8% -11.5% -2.0% -7.0% -4.1% -9.8% 0.0% -100.0% -10.3% -20.1%

* Figures in millions of Mexican Pesos.

Table 5: Total Loan Portfolio by Segment*

4Q20

%of Total

3Q20

%of Total

4Q19

%of Total

QoQ % Change

YoY % Change

Formal Sector Loan Portfolio

• - Independencia

  5,394.3 2,504.0

  76.9% 35.7%

  5,621.3 2,621.3

• - AEF Formal

• - AFI

Informal Sector Loan Portfolio

866.4 2,023.9 1,621.3

• 12.3% 888.9

  • - Independencia

    456.5

  • - Finsol México

  • - Finsol Brazil

  • - AEF Informal

  0.0 335.7 829.1

  Other Loan

  Total Loan Portfolio

  0.0 7,015.5

  28.8% 23.1% 6.5% 0.0% 4.8% 11.8% 0.0%

  2,111.1 2,196.4

  466.4 587.8 300.3 841.9

  0.0

  71.9% 33.5% 11.4% 27.0% 28.1% 6.0% 7.5% 3.8% 10.8% 0.0%

  6,159.8 2,982.3

  934.7 2,242.8 2,619.0

  540.1

  812.0

  379.3

  887.7

  5.8

• 100.0% 7,817.6

• 100.0% 8,784.5

70.1% 33.9% 10.6% 25.5% 29.8% 6.1% 9.2% 4.3% 10.1% 0.1% 100.0%

• -4.0% -12.4%

• -4.5% -16.0%

• -2.5% -7.3%

• -4.1% -9.8%

• -26.2% -38.1%

• -2.1% -15.5%

• -100.0% -100.0%

  • 11.8% -11.5%

  • -1.5% -6.6%

  • 0.0% -100.0%

  • -10.3% -20.1%

* Figures in millions of Mexican Pesos.

Interest Expense

Interest Expense in 4Q20 was Ps. 153.1 million, an 8.4% decrease versus the Ps. 167.2 million reported in 3Q20, and a 30.2% decline against 4Q19. For the twelve-month period, Interest Expense was Ps. 729.9 million, 9.5% less than in the corresponding twelve-month period of 2019.

This is consistent with a 17.9% reduction in long term debt during the year, and with a 28.2% reduction in bank and other entities loans, as part of the strategy aimed at strengthening the Company's financial position.

Provision for Loan Losses1

The Provision for Loan Losses was Ps. 279.5 million in 4Q20, a 27.1% decrease when compared to the Ps. 383.4 million of 3Q20, and below the Ps. 383.2 million reported in 4Q19 YoY. The Provision for Loan Losses for the twelve-month period was Ps. 1,816.7 million, 28.3% greater than the Ps. 1,416.1 million for the twelve-month period of 2019. The Company created prudential reserves for Ps.441.6 million during 2Q20 to account for a foreseeable NPL increase.

1 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 4Q19 presented in this earnings release considers that adjustment.

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.

Net Operating Revenue

Net Operating Revenue was Ps.866.6 million in 4Q20, a 23.4% increase when compared to the Ps. 702.2 million of 3Q20; 10.3% below 4Q19 YoY. The Net Operating Revenue for the twelve-month period was Ps.3,203.6 million, a 13.7% decrease when compared to the Ps. 3,710.3 million for the twelve-month period of 2019.

During 4Q20, Commissions and Fees Collected were Ps.69.0 million, an 8.2% decrease with respect to Ps.75.2 million obtained in 3Q20, in part explained by the Finsol Mexico sale transaction. Commissions and Fees Collected for the twelve-month period was Ps. 296.5 million, 32.3% below the Ps. 438.0 million for the twelve-month period of 2019.

Commissions and Fees Paid were Ps.19.1 million in 4Q20, 7.3% below the Ps. 20.6 million paid in 3Q20, which has helped to alleviate the effects of a reduced loan activity and smaller income base. Commissions and Fees Paid for the twelve-month period was Ps. 78.0 million, 4.2% below the Ps. 81.4 million for the twelve-month period of 2019.

Other Operating Income was Ps. 215.8 million in 4Q20 and consider Ps. 195.7 million that correspond to the Finsol Mexico sale transaction. Other Operating Income for the twelve-month period was Ps. 323.7 million, 64.3% above the Ps. 197.0 million for the twelve-month period of 2019.

Net Operating Income

In 4Q20, the Company posted a net operating loss of Ps.383.6 million that includes a Ps.18.7 million net operating loss in Finsol Mexico, plus a charge to intangibles of Ps. 450 million due to the Finsol

Mexico sale transaction and expenses and provisions worth Ps. 22 million related to Fisofo's deal. When the Finsol Mexico effects are taken out, we observe that in 4Q20 net operating profit would amount to Ps. 107 million which shows promising recovery signs.

The Company posted a Ps. 400.0 million net operating loss for the twelve-month period in 2020; however, when we take out Finsol and Fisofo's transaction related effects, we reach a net operating profit of Ps. 200.0 million on a pro-forma basis.

Non-interest Expense

Non-Interest Expense in 4Q20 was Ps.1,250.2 million and includes a Ps. 450 million charge to intangibles that correspond to the Finsol Mexico sale transaction, Ps. 85.6 million from asset impairment in Finsol Mexico, and Ps.22,4 million in provisions and expenses related to Fisofo's sale; when we take out these concepts, Non-Interest Expenses were 17.6% below 4Q19.

Non-Interest Expense for the aforementioned effects, we reach a the twelve-month period of 2019.

twelve-month period was Ps.3,603.6 million; when we subtract the million which is below the Ps.3,258.9 million incurred in

which is below the Ps.3,258.9 million incurred in

The expenses figure mentioned above, is the result of the actions fostered by the Company, aimed at improving operating efficiency indicators and maintaining discipline in budget expenditure, with a reduced office network and labor force. This effort contributed to focus resources to strengthen the company amidst the challenging environment witnessed during 2020.

Net Income (Loss)

In 4Q20 The Company posted a Net Loss of Ps.396.1 million; a cumulative twelve-month period net loss of Ps.412.7 million. Bottom line is negatively impacted by some short term and well identified effects, such as: a Ps. 91.1 million net loss in Finsol Mexico, a Ps. 450 million (pre-tax) write down of intangibles, and Ps. 22.4 million in expense and provisions related to Fisofo's transaction. It is important to note that, when we exclude for these events, and adjust for taxes in a pro-forma basis, we reach a net profit of Ps. 144.2 million.

Table 6: Net Operating Income*	Change
4Q20	3Q20	4Q19	QoQ %	YoY %	12M20	12M19	% Change
Financial Margin	880.4	994.6	1,172.4	-11.5%	-24.9%	4,097.3	4,570.3	-10.3%
Provision for Loan Losses	279.5	383.4	383.2	-27.1%	-27.1%	1,816.7	1,416.1	28.3%
Financial Margin After Provision for Loan Losses	600.9	611.2	789.2	-1.7%	-23.9%	2,280.6	3,154.2	-27.7%
Non-Interest Income, net	49.9	54.6	88.6	-8.7%	-43.7%	218.5	356.6	-38.7%
- Commissions and Fees Collected	69.0	75.2	111.0	-8.3%	-37.9%	296.5	438.0	-32.3%
- Commissions and Fees Paid	19.1	20.6	22.3	-7.5%	-14.6%	78.0	81.4	-4.2%
Market Related Income	0.0	11.4	-1.5	-99.6%	-102.9%	380.8	2.4
Other Operating Income (expense)	215.8	25.0	90.0	763.7%	139.8%	323.7	197.0	64.3%
Net Operating Revenue	866.6	702.2	966.2	23.4%	-10.3%	3,203.6	3,710.3	-13.7%
Non-Interest Expense	1,250.2	740.1	840.7	68.9%	48.7%	3,603.6	3,258.9	10.6%
- Other Administrative & Operational Expenses	798.5	272.8	284.7	192.7%	180.5%	1,654.4	1,117.0	48.1%
- Salaries & Employee Benefits	451.7	467.2	556.0	-3.3%	-18.8%	1,949.2	2,141.8	-9.0%
Net Operating Income (Loss)	(383.6)	(37.9)	125.5	913.4%	-400.0	451.4
Operational Data
Number of Offices	387	519	532	-25.4%	-27.3%	387	532	-27.3%
- Independencia	167	169	163	-1.2%	2.5%	167	163	2.5%
- Finsol México	0	131	148	-100.0%	-100.0%	0	148	-100.0%
- Finsol Brazil	28	27	29	3.7%	-3.4%	28	29	-3.4%
- Apoyo Económico Familiar	164	164	164	0.0%	0.0%	164	164	0.0%
- Apoyo Financiero Inc	28	28	28	0.0%	0.0%	28	28	0.0%
Total Labor Force	5,484	6,519	7,858	-15.9%	-30.2%	5,484	7,858	-30.2%
- Independencia	3,286	3,312	4,206	-0.8%	-21.9%	3,286	4,206	-21.9%
- Finsol México	8	948	1,173	-99.2%	-99.3%	8	1,173	-99.3%
- Finsol Brazil	271	283	298	-4.2%	-9.1%	271	298	-9.1%
- Apoyo Económico Familiar	1,725	1,772	1,957	-2.7%	-11.9%	1,725	1,957	-11.9%
- Apoyo Financiero Inc	194	204	224	-4.9%	-13.4%	194	224	-13.4%
* Financial data in millions of Mexican Pesos.

BALANCE OF THE ACTION PLAN DEPLOYED IN 2020 AMID THE COVID-19 PANDEMIC

In the fourth quarter the Company continued the deployment of its Corporate Action Plan aimed at mitigating the negative impacts caused by the COVID-19 pandemic, by adjusting the business to the environment.

In 4Q20 the Company stabilized the loan portfolio contraction by increasing loan origination in a gradual and ordered fashion where conditions allowed.

During 4Q20 the Company kept a close follow-up in loan collections and efficiently managed the risk in the loan portfolio, thus achieving the reversion of the upward trend in NPLs that was observed in previous quarters, related to the payment behavior of some clients who received COVID-19 relief products.

The additional loan provisions that were raised during 2Q20 provided appropriate backup for loan write-offs, enabling the Company to absorb the negative impact successfully; the loan portfolio has been stabilized in 4Q20 and keep a reasonable risk level, which will provide support for future growth as soon as conditions allow.

FINANCIAL POSITION

Total Loan Portfolio

In 4Q20 the Company's Total Loan Portfolio was Ps. 7,015.5 million, a 20.1% decrease YoY, and represents 66.4% of the total assets.

The individual unsecured loan portfolio in Mexico operated by FISA and AEF was Ps. 3,793.0 million and represents 54.1% of the Company's total loan portfolio. Payroll loans were Ps. 862.9 million and represent 12.3% of the Company's loan portfolio; thus, the loan book in Mexico was Ps. 4,655.9 million and represents 66.4% of the Company's total loan portfolio.

AFI's loan portfolio was Ps. 2,023.9 million and represents 28.8% of the Company's total; and finally, Finsol Brazil's loan portfolio was Ps. 335.7 million and represents 4.8% of the Company's total loan portfolio.

In 4Q20 the number of clients served decreased to 363,791; a reduction of 83,032 customers with respect to the 446,823 people that the Company served in 3Q20, out of which 67,500 correspond to Finsol Mexico. The client base distribution is as follows: 217,334 are served in Independencia; 92,255 in AEF; 24,758 in AFI, and 29,444 in Finsol Brazil.

The average loan amount per client increased 23.4% YoY, from Ps. 15,625 to Ps.19,284, 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 and the depreciation of the peso against the US dollar also impact this metric.

Non-Performing Loans Portfolio (NPLs)

Consolidated NPLs were Ps.359.1 million in 4Q20, a 36.3% decrease versus Ps. 564.0 million observed in 3Q20, a 30.6% decrease with respect to Ps. 517.7 million in 4Q19 YoY. The consolidated NPL ratio was 5.1% in 4Q20, a 2.1 percentage points decrease with respect to the 7.2% observed in 3Q20, and 80bp below the 5.9% reported in 4Q19.

The NPL ratio for individual unsecured loans in Independencia was 6.0%, showing a 3.9 percentage points reduction with respect to the 9.9% NPL ratio reported in 3Q20. The NPL ratio in AEF was 7.6%, a 2.3 percentage points decrease versus the 9.9% observed in 3Q20. The NPL ratio in payroll loans was 1.7%, similar to the 1.8% reported in 3Q20.

The NPL ratio in AFI was 4.2% in 4Q20, a 1.3 percentage points decrease versus the 5.5% reported in 3Q20; and finally, the NPL ratio in Finsol Brazil was 1.5%, a 0.2 percentage points decrease versus the 1.7% of 3Q20.

The Coverage Ratio2 in 4Q20 was 191.5%, above the 184.5% reported in 3Q20 and the 111.6% observed in 4Q19; this ratio includes the effect of additional prudential reserves of Ps. 441.6 million raised during 2Q20. Since January 2013, the Company's policy is to maintain an NPL Coverage Ratio at or above 100% at all times.

Liquid Assets

At 4Q20 the Company maintained in its balance sheet Ps. 858.9 million in Cash and Cash Equivalents, about 8% of total assets, the strategy that the Company implemented, allowed it to accumulate cash through the year. Given this, the amount of liquid assets is 89.8% greater than the Ps. 452.5 million that were maintained in 4Q19.

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

Liabilities

At 4Q20 total liabilities were Ps. 6,577.9 million, a 19.8% decrease versus the Ps. 8,202.2 million reported in 4Q19, which is consistent with the adjustments conducted by The Company to address the loan portfolio contraction, aimed at maintaining a sustainable debt to equity ratio. The change in the amount of liabilities is affected by purchases of FINDEP24 Notes and reduced usage of bank lines during the quarter.

In 4Q20, FINDEP's debt3 consisted of Ps. 3,860.6 million of US dollar-denominated Long Term Debt due on July 2024 as well as Ps. 2,050.2 million of Bank and Other Entities Loans. The Company's total credit lines amounted to Ps. 4,173.13 million at the end of 4Q20.

Stockholders' Equity

In4Q20 stockholder's equity was Ps. 3,987.3 million, a 7.6% decrease from Ps. 4,315.3 million at the end of 4Q19. Stockholder's equity is affected by a Ps. 736.6 million negative YoY variation in Net Loss for the Year, mainly explained by the effect on intangible assets derived from Finsol Mexico sale, which was partially offset by a Ps.315.8 million positive YoY variation in Retained Earnings and Net Income; a Ps.19.5 million positive YoY variation in foreign exchange effect and a Ps.73.3 million positive YoY variation in derivatives for hedging purposes.

PROFITABILITY, EFFICIENCY AND CAPITALIZATION RATIOS

ROE4/ROA5

In 4Q20, the Company's Return on Equity ratio (ROAE) was -37.4% and the Return on Assets ratio (ROAA) of -14.2%. When intangible items are excluded, the adjusted ROAE and ROAA for the fourth quarter are 7.8% and 3.0%, respectively.

The cumulative twelve-month period ROAE and ROAA are -9.9% and -3.6%, respectively. When intangible items are excluded, the adjusted ROAE and ROAA for the twelve-month period are 3.5% and 1.3%, respectively.

Efficiency Ratio6 & Operating Efficiency7

During 2020 the Company reduced 145 branches, from which 131 were closed in 4Q20 as part of the Finsol Mexico sale transaction. The Company's branch network was reduced from 532 in 4Q19 to 387 in 4Q20. The labor force was reduced in 2,374 employees, -30.2%, from 7,858 in 4Q19 to 5,484 in 4Q20; from that reduction, 1,165 employees were separated from the Company when the Finsol Mexico sale transaction was executed.

In 4Q20, the Efficiency Ratio was 144.3%, compared with 87.0% in 4Q19. Operating Efficiency was 44.8% versus 26.8% in 4Q19 YoY. Both indicators are affected by a reduced income base and reduced amounts of average assets during 2020 in the context of the COVID-19 pandemic, as well as by the Finsol Mexico sale transaction.

• 3 It includes interest provision

• 4 ROE: Net Income for the quarter annualized / Average Stockholders' Equity of the current and previous quarters

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

• 6 Efficiency Ratio: Non-interest expense / Net Operating Revenues

• 7 Operating Efficiency: Non-interest Expense (annualized) / Average Total Assets

Capitalization

As of 4Q20, Equity to Total Assets Ratio was 37.7%, a 320 bps increase vs. 34.5% reported in 4Q19.

DISTRIBUTION NETWORK

In 4Q20 the Company had a network of 387 branches, 145 fewer offices than in 4Q19, having reduced 17 Finsol Mexico branches between January and September and closed additional 131 when the group loan portfolio sale transaction was executed in October. In addition to that, 1 branch office was closed in Finsol Brazil and there were 4 openings in Independencia.

The distribution of the 387 offices is as follows: 331 in Mexico (Independencia 167 and AEF 164), 28 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 15.9% of the total. The three federal entities in Mexico with the largest share are Estado de Mexico, Mexico City, and Veracruz, with 15.9%, 14.5%, and 6.3% share respectively.

SALE OF THE PAYROLL LOAN PORTFOLIO AND SALE OF REPRESENTATIVE STOCKS OF FISOFO S.A. de C.V., SOFOM, E.N.R.

On December 23, 2020 the Company announced the signature of an agreement with Grupo Consupago,

S.A. de C.V. ("Consupago") and with Consubanco, S.A. I.B.M ("Consubanco"), in order to close the following operations:

1. - The sale of materially all the payroll loan portfolio booked in the subsidiary company Fisofo, S.A. de

C.V., SOFOM, E.N.R. ("Fisofo"), except for a small percentage of it that will be booked in FINDEP.

2. - The sale of all the representative stocks of Fisofo to Consupago and Mr. José Ramón Chedraui Eguía.

The effects of the above-mentioned contracts are subject to the approval of Comisión Federal de Competencia Económica ("Cofece"), the Mexican authority in competition matters. At the time of the release of this report, Cofece had not yet made public its resolution.

The above-mentioned sale implies the Company's exit of the payroll loans business in Mexico, this as part of a strategic decision aimed at focusing resources, knowledge, and experience earned over the years in providing individual unsecured loans, that is where the Company's strength and scale lie. The

Company will introduce innovation elements to its business model and loan process, supported in technology and digital media.

4Q20 EARNINGS CONFERENCE CALL

Day:	Friday, February 19th, 2021
Time:	12:00 PM US (ET); 11:00 AM Mexico (CT)
Dial-in number:	1-800-437-2398 (US & Canada)
1-929-477-0577 (International)
001-800-514-8243 (Mexico)
Access Code:	9609173
Web cast:	A live web cast of the conference call and replay will be available atwww.findep.mx
Replay:	Starting at 3:00 pm (ET) on February 19th and ending at 11:59 pm (ET) on March
5th, 2021. The replay will be accessible by dialing 1-844-512-2921 (U.S./Canada)
or 1-412-317-6671 (International) and entering passcode 9609173.

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 of both the formal and informal economy. As of December 31st, 2020, FINDEP had a total outstanding loan balance of Ps.7,015.5 million, operated 387 offices in Mexico, Brazil, and the US and had a total labor force of 5,484 people. The Company listed on the Mexican Stock Exchange on November 1st, 2007, where it trades under the symbol "FINDEP". More information can be found atwww.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 ***

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

For the Twelve Months Periods Ended December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20

3Q20

4Q19

$

%

Interest Income Interest Expense

Net Interest Income

880.4

Provision for Loan Losses

Net Interest Income After Provision for Loan Losses

600.9

Commissions and Fees Collected

Commissions and Fees Paid Market Related Income

Other Operating Income (expense)

Net Operating Revenue

866.6

Non-Interest Expense

Net Operating Income (Loss)

(383.6)

Total Income (Loss) Before Minority Interest

(396.1)

Income Tax

Current Deferred

Participation in the Results of Associates Minority Interest

Net Income (Loss)

(396.1)

(29.1)

• 97.4 (493.5)

• Weighted Average Number of Shares EPS

  337.5 (1.1736)

  1,033.4

  1,250.2

  153.1

  279.5

  215.8

  (55.4) 68.0

  69.0

  19.1

  - -

  0.0

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

As of December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20 vs 4Q19

4Q20	3Q20	4Q19	$	%
ASSETS
Cash and Cash Equivalents	858.9	724.4	452.5	406.4	89.8%
Performing Loans	6,656.5	7,253.7	8,266.8	(1,610.3)	(19.5%)
Non-Performing Loans	359.1	564.0	517.7	(158.7)	(30.6%)
Total Loan Portfolio	7,015.5	7,817.6	8,784.5	(1,769.0)	(20.1%)
Allowances for Loan Losses	(687.7)	(1,040.4)	(577.7)	(110.1)	19.1%
Total Loan Portfolio - Net	6,327.8	6,777.2	8,206.9	(1,879.1)	(22.9%)
Other Accounts Receivable - Net	612.6	505.1	608.1	4.5	0.7%
Property, Plant & Equipment - Net	180.3	237.3	271.2	(90.8)	(33.5%)
Deferred Income Tax	958.2	986.6	1,030.0	(71.8)	(7.0%)
Derivative Financial Instruments	148.9	582.3	18.1	130.7	720.3%
Other Assets	1,478.5	1,970.0	1,930.8	(452.2)	(23.4%)
Total Assets	10,565.2	11,783.1	12,517.5	(1,952.3)	(15.6%)
LIABILITIES
Long term debt issuance	3,860.6	4,169.5	4,702.4	(841.8)	(17.9%)
Bank and Other Entities Loans	2,050.2	2,320.6	2,856.3	(806.1)	(28.2%)
Derivative Financial Instruments	-	-	-	-
Other Accounts Payable	667.1	796.7	643.5	23.6	3.7%
Total Liabilities	6,577.9	7,286.8	8,202.2	(1,624.3)	(19.8%)
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	2,714.1	2,714.1	2,398.3	315.8	13.2%
Net Income (Loss) for the Year	(412.7)	(16.6)	323.9	(736.6)
Financial Instruments - Derivatives	(93.7)	(13.2)	(167.0)	73.3	(43.9%)
Foreign exchange effect	36.1	68.5	16.6	19.5	117.7%
Other comprehensive income movement ent related to NIF D-3	(2.7)	(2.7)	(2.7)	-	0.0%
Minority Interest	0.0	0.0	0.0	0.0
Total Stockholders' Equity	3,987.3	4,496.3	4,315.3	(328.0)	(7.6%)
Total Liabiliies and Stockholders' Equity	10,565.2	11,783.1	12,517.5	(1,952.3)	(15.6%)

Independencia Income Statement

(Millions of Mexican Pesos)

4Q20

3Q20

4Q19

$

%

Interest Income Interest Expense

520.0 89.4

527.1 93.9

Net Interest Income

430.6

433.2

Provision for Loan Losses

64.4

99.5

Net Interest Income After Provision for Loan Losses

366.2

333.7

Commissions and Fees Collected

Commissions and Fees Paid Market Related Income

Other Operating Income (expense)

20.0

8.7

30.2 63.5 (43.6) (68.6%) 9.9 10.7 (2.0) (18.9%)

0.1

11.4

8.0

6.5 17.5 (9.5) (54.4%)

Net Operating Revenue

385.5

371.9

Non-Interest Expense

825.4

323.8

Net Operating Income (Loss)

(440.0)

48.0

Income Tax

Current Deferred

5.1 0.1

2.3 13.2

Total Income (Loss) Before Minority Interest

(445.2)

32.6

Participation in the Results of Associates

Minority Interest

- -

- -

Net Income (Loss)

(445.2)

32.6

Independencia Balance Sheet

As of December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20

3Q20

4Q19

$

%

ASSETS

Cash and Cash Equivalents

Performing Loans Non-Performing Loans

Total Loan Portfolio

Allowances for Loan Losses

Total Loan Portfolio - Net

Other Accounts Receivable - Net Property, Plant & Equipment - Net Deferred Income Tax

Derivative Financial Instruments Other Assets

Total Assets

LIABILITIES

Long term debt issuance Bank and Other Entities Loans Derivative Financial Instruments Other Accounts Payable

Total Liabilities

Capital Stock

Additional Paid-In Capital Capital Reserves Retained Earnings

Net Income (Loss) for the Year Financial Instruments - Derivatives Cumulative Conversion Effect

Remediciones x benef. definidos a empleados Minority Interest

Total Stockholders' Equity

Total Liabiliies and Stockholders' Equity

Finsol México Income Statement

Interest Income Interest Expense

Net Interest Income

Provision for Loan Losses

Net Interest Income After Provision for Loan Losses

Commissions and Fees Collected

Commissions and Fees Paid Market Related Income

Other Operating Income (expense)

Net Operating Revenue

Non-Interest Expense

Net Operating Income (Loss)

Income Tax

Current Deferred

Total Income Before Minority Interest

Participation in the Results of Associates

Net Income (Loss)

Finsol México Balance Sheet

As of December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20	4Q19	$	%
66.1	54.3	52.9	13.2	25.0%
-	548.9	765.1	(765.1)	(100.0%)
-	38.9	46.9	(46.9)	(100.0%)
-	587.8	812.0	(812.0)	(100.0%)
-	(130.1)	(86.6)	86.6	(100.0%)
-	457.7	725.4	(725.4)	(100.0%)
Assets, Accounts Receivable & Other Assets	304.9	266.8	271.1	33.8	12.5%
Total Assets	371.0	778.7	1,049.4	(678.4)	(64.6%)
LIABILITIES
Bank and Other Entities Loans	-	210.1	264.5	(264.5)	(100.0%)
Other Accounts Payable	34.3	218.3	357.1	(322.8)	(90.4%)
Total Liabilities	34.3	428.4	621.6	(587.3)	(94.5%)
Total Stockholders' Equity	336.7	350.3	427.8	(91.1)	(21.3%)
Total Liabiliies and Stockholders' Equity	371.0	778.7	1,049.4	(678.4)	(64.6%)
Page 17 of 21

ASSETS

4Q20	3Q20	4Q19	$	%	12M20	12M19	$	%
10.9	119.2	177.0	(166.0)	(93.8%)	447.4	692.2	(244.8)	(35.4%)
2.9	8.4	14.7	(11.8)	(80.1%)	35.8	47.8	(12.0)	(25.1%)
8.0	110.8	162.3	(154.3)	(95.1%)	411.6	644.4	(232.8)	(36.1%)
102.5	54.8	58.3	44.2	75.8%	312.9	202.4	110.5	54.6%
(94.5)	56.0	104.0	(198.5)	98.6	442.0	(343.3)	(77.7%)
0.1	1.1	1.8	(1.8)	(97.1%)	3.5	7.3	(3.7)	(51.6%)
2.5	2.6	4.1	(1.6)	(38.6%)	11.6	15.2	(3.6)	(23.9%)
-	-	-	-	-	-	-
203.0	4.5	19.4	183.7	949.0%	216.5	41.1	175.4	426.3%
106.1	58.9	121.1	(15.0)	(12.4%)	307.1	475.2	(168.1)	(35.4%)
124.8	100.2	109.5	15.3	14.0%	434.8	434.3	0.5	0.1%
(18.7)	(41.3)	11.6	(30.3)	(127.8)	40.8	(168.6)
(0.0)	0.5	7.6	(7.6)	(100.0%)	0.0	23.6	(23.6)	(100.0%)
(5.1)	(12.7)	(4.7)	(0.3)	7.3%	(37.7)	(12.1)	(25.5)	210.1%
(13.6)	(29.1)	8.7	(22.3)	(90.1)	29.3	(119.4)
-	-	-	-	(1.0)	-	(1.0)
(13.6)	(29.1)	8.7	(22.3)	(256.2%)	(91.1)	29.3	(120.4)	(410.4%)
3Q20

Cash and Cash Equivalents

Performing Loans Non-Performing Loans

Total Loan Portfolio

Allowances for Loan Losses

Total Loan Portfolio - Net

Finsol Brazil Income Statement

4Q20 vs 4Q19

4Q20

3Q20

4Q19

$

%

Interest Income Interest Expense

41.3

42.7 6.4

56.0 8.3

• (14.7) (26.2%)

  7.0

• (1.4) (16.5%)

  Net Interest Income

  34.4

  36.3

  47.7

• (13.3) (27.9%)

• Provision for Loan Losses

  4.1

  0.2

  7.5

• (3.4) (45.3%)

  Net Interest Income After Provision for Loan Losses

  30.3

  36.2

  40.2

• (9.9) (24.7%)

• Commissions and Fees Paid

  Market Related Income

  Other Operating Income (expense)

  1.2 -

  1.3 - 4.4

  1.9 - 6.8

• (0.7) (36.4%)

-

3.8

• (3.0) (43.6%)

  Net Operating Revenue

  32.9

  39.2

  45.2

• (12.2) (27.0%)

• Non-Interest Expense

  29.4

  31.5

  41.8

• (12.4) (29.7%)

Net Operating Income (Loss)

3.5

7.8

3.3

0.2 6.5%

Income Tax

Current Deferred

1.3 (0.6)

(0.2) 3.0

0.1 1.4

1.2

(2.0)

Total Income Before Minority Interest

2.9

5.0

1.8 1.0

Net Income (Loss)

2.9

5.0 1.8 1.0 57.3%

Finsol Brazil Balance Sheet

As of December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20

ASSETS

Performing Loans Non-Performing Loans

3Q20

Allowances for Loan Losses

Cash and Cash Equivalents

152.4 144.6

330.6 295.3

5.0 5.0

Assets, Accounts Receivable & Other Assets

Total Loan Portfolio

335.7 300.3

LIABILITIES

Total Loan Portfolio - Net

310.2 277.3

59.3 79.4

Total Assets

521.9 501.3

Bank and Other Entities Loans Other Accounts Payable

(25.4)

(23.0)

211.2 163.1

217.4 244.0

Total Liabilities

428.6 407.1

Total Stockholders' Equity

93.4 94.2

Total Liabiliies and Stockholders' Equity

521.9 501.3

4Q19

$	%
128.7	23.8	18.5%
367.4	(36.8)	(10.0%)
11.9	(6.8)	(57.6%)
379.3	(43.6)	(11.5%)
(17.3)	(8.1)	47.0%
361.9	(51.7)	(14.3%)
37.0	22.3	60.2%
527.6	(5.7)	(1.1%)
107.9	103.2	95.6%
303.0	(85.6)	(28.3%)
410.9	17.6	4.3%
116.7	(23.3)	(20.0%)
527.6	(5.7)	(1.1%)

Apoyo Económico Familiar Income Statement

(Millions of Mexican Pesos)

4Q20

3Q20

4Q19

$

%

Interest Income Interest Expense

302.7 26.2

295.9 27.6

Net Interest Income

276.6

268.4

Provision for Loan Losses

96.6

121.6

Net Interest Income After Provision for Loan Losses

180.0

146.8

Commissions and Fees Collected

Commissions and Fees Paid Market Related Income

Other Operating Income (expense)

36.8

(0.0)

0.5

32.7 0.4 (0.0)

9.7

9.6 42.0 (32.3) (76.8%)

Net Operating Revenue

226.1

188.6

Non-Interest Expense

191.1

191.0

Net Operating Income (Loss)

35.0

(2.3)

Income Tax

Current Deferred

(69.0) 73.6

2.4 (2.1)

Total Income Before Minority Interest

30.5

(2.7)

Participation in the Results of Associates

-

-

Net Income (Loss)

30.5

(2.7)

Apoyo Económico Familiar Balance Sheet

As of December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20

3Q20

4Q19

%
124.3	18.2	14.7%
1,688.1	(122.1)	(7.2%)
134.3	(4.8)	(3.6%)
1,822.4	(126.9)	(7.0%)
(173.3)	(49.8)	28.7%
1,649.1	(176.7)	(10.7%)
369.9	47.6	12.9%
2,143.3	(110.8)	(5.2%)
-	-
614.3	(43.8)	(7.1%)
651.2	(26.4)	(4.1%)
1,265.5	(70.2)	(5.5%)
877.8	(40.6)	(4.6%)
2,143.3	(110.8)	(5.2%)

$

ASSETS

Cash and Cash Equivalents

142.6

99.1

Performing Loans Non-Performing Loans

1,566.0

1,560.2

129.5

170.7

Total Loan Portfolio

1,695.5

1,730.9

Allowances for Loan Losses

(223.0)

(274.4)

Total Loan Portfolio - Net

1,472.4

1,456.4

Assets, Accounts Receivable & Other Assets

417.5

470.7

Total Assets

2,032.5

2,026.2

LIABILITIES

Long term debt issuance Bank and Other Entities Loans Other Accounts Payable

-

-570.5 547.5

624.8 672.0

Total Liabilities

1,195.3

1,219.5

Total Stockholders' Equity

837.2

806.7

Total Liabiliies and Stockholders' Equity

2,032.5

2,026.2

Apoyo Financiero Inc Income Statement

4Q20

3Q20

4Q19

$

%

Interest Income Interest Expense

158.2 27.6

176.4 30.9

195.7 35.3

Net Interest Income

130.6

145.4

160.4

Provision for Loan Losses

9.3

109.1

64.3

Net Interest Income After Provision for Loan Losses

121.3

36.4

96.1

Commissions and Fees Collected

Commissions and Fees Paid Market Related Income

Other Operating Income (expense)

9.8

8.9 0.1 - (3.8)

12.1

(3.4)

0.1 -

0.2 - (3.0)

Net Operating Revenue

127.5

41.3

105.1

Non-Interest Expense

91.0

91.4

88.4

Net Operating Income (Loss)

36.5

(50.0)

16.6

Income Tax

Current Deferred

7.2 -

(15.2)

-

5.8 -

Total Income (Loss) Before Minority Interest

29.3

(34.9)

10.9

18.4 169.8%

Net Income (Loss)

29.3

(34.9)

10.9

18.4 169.8%

Apoyo Financiero Inc Balance Sheet

As of December 31, 2020 and 2019

(Millions of Mexican Pesos)

4Q20

3Q20

4Q19

$

%

ASSETS

Cash and Cash Equivalents

36.8

112.4

36.8

Performing Loans Non-Performing Loans

1,939.2

1,994.2

2,172.9

84.7

116.9

69.9

Total Loan Portfolio

2,023.9

2,111.1

2,242.8

Allowances for Loan Losses

(198.8)

(302.4)

(97.4)

Total Loan Portfolio - Net

1,825.1

1,808.7

2,145.4

Assets, Accounts Receivable & Other Assets

113.0

114.0

70.8

Total Assets

1,974.9

2,035.0

2,253.0

LIABILITIES

Bank and Other Entities Loans Other Accounts Payable

1,176.5

153.6

- 1,390.7

111.8 1,553.1

Total Liabilities

1,330.1

1,390.7

1,664.9

Total Stockholders' Equity

644.8

644.3

588.1

Total Liabiliies and Stockholders' Equity

1,974.9

2,035.0

2,253.0

FINANCIERA INDEPENDENCIA S.A.B. DE C.V., SOFOM, E.N.R. Key Ratios & Operating Data

For the Twelve Months Periods Ended December 31, 2020 and 2019

(Millions of Mexican Pesos)

Change

4Q20	3Q20	4Q19	QoQ %	YoY %	12M20	12M19	%
Key Ratios
Profitability & Efficiency
NIM after Provisions Excl. Fees (1)	29.3%	28.3%	34.5%	1 pp	-5.2 pp	26.7%	35.2%	-8.6 pp
NIM after Provisions Incl. Fees (2)	42.2%	32.5%	42.2%	9.8 pp	0 pp	37.4%	41.4%	-4 pp
Provisions / Financial Margin	31.7%	38.5%	32.7%	-6.8 pp	-0.9 pp	44.3%	31.0%	13.4 pp
ROAA (3)	-14.2%	-1.0%	3.1%	-13.2 pp	-17.3 pp	(3.6%)	2.6%	-6.2 pp
ROAE (4)	-37.4%	-2.5%	9.0%	-34.8 pp	-46.4 pp	(9.9%)	7.6%	-17.5 pp
Efficiency Ratio Incl. Provisions (5)	144.3%	105.4%	87.0%	38.9 pp	57.3 pp	112.5%	87.8%	24.7 pp
Efficiency Ratio Excl. Provisions (6)	109.1%	68.2%	62.3%	40.9 pp	46.8 pp	71.8%	63.6%	8.2 pp
Operating Efficiency (7)	44.8%	24.8%	26.8%	19.9 pp	17.9 pp	31.2%	26.3%	4.9 pp
Fee Income (8)	5.8%	7.8%	9.2%	-2 pp	-3.4 pp	6.8%	9.6%	-2.8 pp
Capitalization
Equity to Total Assets	37.7%	38.2%	34.5%	-0.4 pp	3.3 pp	37.7%	34.5%	3.3 pp
Credit Quality Ratios
NPL Ratio (9)	5.1%	7.2%	5.9%	-2.1 pp	-0.8 pp	5.1%	5.9%	-0.8 pp
Coverage Ratio (10)	191.5%	184.5%	111.6%	7.1 pp	80 pp	191.5%	111.6%	80 pp
Operating Data
Number of Clients	363,791	446,823	561,832	-18.6%	-35.2%	363,791	561,832	-35.2%
- Financiera Independencia	217,334	229,040	281,260	-5.1%	-22.7%	217,334	281,260	-22.7%
- Finsol México	0	67,500	103,084	-100.0%	-100.0%	0	103,084	-100.0%
- Finsol Brazil	29,444	29,377	34,867	0.2%	-15.6%	29,444	34,867	-15.6%
- Apoyo Económico Familiar	92,255	95,216	111,434	-3.1%	-17.2%	92,255	111,434	-17.2%
- Apoyo Financiero Inc	24,758	25,690	31,187	-3.6%	-20.6%	24,758	31,187	-20.6%
Number of Offices	387	519	532	-25.4%	-27.3%	387	532	-27.3%
Total Labor Force	5,484	6,519	7,858	-15.9%	-30.2%	5,484	7,858	-30.2%

(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

• (3) ROAA: Net Income / Average Total Assets

• (4) ROAE: Net Income / Average Total Equity

• (5) Efficiency Ratio: Non-Interest Expense / Net Operating Revenues

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

• (7) Operating Efficiency: 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