Grupo Financiero Interacciones Reports 17.04% ROE in 2014

MEXICO CITY, Jan. 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 twelve-month periods ended December 31, 2014.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "We are very pleased with the strong performance reported this year. We achieved an ROE of 17.04% with net income of Ps.1,936 million supported by strong loan growth. Moreover, we expanded financial margin by 10.63% during 2014 while keeping healthy asset quality of 0.14%."

"Furthermore, we met all of our guidance metrics for 2014. We expanded our loan portfolio by 29.87% during the year, substantially above our expected range of 17% - 21% growth, also exceeding banking system growth of 9.38%*. In government lending in particular, GFI achieved a 12.17% YoY loan growth compared to 5.52%* for the industry. Net income, ROE, NPLs and efficiency were also within our guidance range."

"This performance further demonstrates GFI´s flexibility to adapt to a changing environment and the seasonality of our business model, focused on providing financing and advisory services to the Mexican public sector and related SME suppliers. This strategy has allowed us to leverage higher demand for our financial services across our business lines.  Financing needs of States and Municipalities increased this quarter driven by increased spending as they meet their annual budgets."

"We also continued to make headway in implementing our internal liquidity strategy, which contributed to further lower the cost of funding by 4 basis points. This was achieved by expanding demand deposits by 48.04% YoY, mainly driven by institutional deposits, while lowering our balance in time deposits from financial institutions as per Basel III requirements. We also successfully placed a Ps.1.5 billion debt issuance of "Certificados Bursatiles" for a 4.25 year term."

"Having achieved and surpassed our 2014 goals for business growth and profitability, we look ahead at 2015 as a year offering great opportunities for growth, but with evident challenges resulting from the various macroeconomic conditions we are all living today. These challenges may pose different scenarios to test GFI´s performance, however we are fully prepared to meet these challenges, and to adapt ourselves to all the implied changing conditions, as GFI has proved throughout its history." concluded Mr. Rojo Macedo.                                                           

*Source CNBV – last data available  (nov 13 – nov 14)

A telephonic replay of the conference call will be available between 1:00 pm ET on January 29, 2015 and 11:59 pm ET on February 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 1601139. 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 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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