Grupo Financiero Interacciones Reports 16.84% ROE in 2Q15

MEXICO CITY, July 28, 2015 /PRNewswire/ -- Grupo Financiero Interacciones, S.A. de C.V., (BMV: GFINTERO), ("Grupo Financiero Interacciones" or "GFI"), the largest specialized Mexican financial group with a business model focused on providing financing, risk management and financial advisory services mainly to the Mexican public sector, today announced results for the three- and six-month periods ended June 30, 2015.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "GFI reported an outstanding performance this quarter despite the overall uncertain environment in the financial markets, the perceived liquidity in our niche market and the overall lackluster credit market in Mexico.  This translated into 16.84% ROE and earnings of Ps.541 million pesos for the quarter. Our strict cost control policy resulted in an efficiency ratio of 35.63%, while our focus on asset quality allowed us to deliver an NPL ratio of 0.14%.

"This strong performance was achieved despite loan growth this quarter – up 20.76% year-on-year and 3.13% on a sequential basis following the seasonality of our business model, where we experience a strong pick-up in lending towards the end of the year. Nonetheless, this was significantly above market growth of 12.90% annually and 1.17% quarterly."

"Most importantly, results highlight GFI´s ability to generate strong results through core commission generation. Our capability to provide tailor made solutions to our clients contributed to strong commissions at our Banking unit – 37.12% higher than those reported in the previous quarter and 45.57% above 2Q14 levels. Additionally, our brokerage firm reported a 21.51% QoQ increase in trading income leveraging the volatility in the marketplace to create trading opportunities.

"Innovation is an important element of our business strategy as we seek to develop new specialized products and services to continue capturing market share in our niche markets. At our SME banking unit in particular, the successful introduction of innovative financing solutions for leasing companies was a significant contributor to the 95.00% sequential growth in commissions achieved this quarter."

"We also continued to make progress in our efforts to achieve an optimal funding structure. Funding sources increased Ps.8 billion mainly driven by our traditional focus in growing quality stable institutional deposits, which were up 14.44% on a quarterly basis and by the issuance of another Ps.228 million tranche as part of our Ps.1,000 million sub-debt issuance that took place last quarter. In keeping with our funding discipline, we have focused on attracting stable deposits - according to Basel III - allowing us to achieve surplus of Ps.6 billion pesos in daily liquidity and a LCR ratio of 157%, significantly above the 60% regulatory requirement. Additionally, we reduced the mismatch between assets and liabilities by 1 year in just 12 months."

"Looking ahead, we are confident of the opportunities ahead as we further implement our innovation strategy across all of our business lines, while continuing to drive growth of our traditional core lending activities to deliver consistent profitability." concluded Mr. Carlos Rojo Macedo.                                                           

Main Indicators

A telephonic replay of the conference call will be available between 12:00 pm ET on July 29, 2015 and 11:59 pm ET on August 5, 2015. The replay can be accessed by dialing +1-877-870-5176 or for international callers 1-858-384-5517. The passcode for the replay is 9575722. The audio of the conference call will also be archived on GFI's IR website at www.investorsinteracciones.com.

About Grupo Financiero Interacciones

Grupo Financiero Interacciones, S.A. de C.V. ("Grupo Interacciones" or "GFI"), is the largest specialized Mexican financial group with a business model focused on providing financing, risk management and financial advisory services mainly to the Mexican public sector, which includes federal, state and municipal governments, quasi-government entities and government suppliers. Grupo Financiero Interacciones conducts its business mainly through Banco Interacciones, its banking subsidiary, and through Interacciones Casa de Bolsa, its broker-dealer subsidiary, and Aseguradora Interacciones, its insurance company subsidiary. Grupo Financiero Interacciones is listed on the Bolsa Mexicana de Valores under the symbol "GFINTERO". For more information, please visit http://www.investorsinteracciones.com

This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties, and assumptions. By their very nature, forward-looking statements and such information involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved or will differ from actual results. A number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed or implied in such forward-looking statements. Should one or more of these factors or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. Grupo Interacciones assumes no obligation to update or correct the information contained in this press release.

To obtain the full text of this earnings release, please visit our Investor Relations website at www.investorsinteracciones.com under the Financial Information / Quarterly Financial Results section.

SOURCE Grupo Financiero Interacciones, S.A. de C.V.

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