Grupo Financiero Interacciones Reports 17.59% ROE in 2Q14

MEXICO CITY, July 28, 2014 /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, 2014. In 2Q14, Grupo Financiero Interacciones reported net income of Ps.496 million, representing a 16.43% YoY increase.

Mr. Carlos Hank Gonzalez, Chief Executive Officer of Grupo Financiero Interacciones, commented: "We reported a strong performance this quarter with a ROE of 17.59% supported by strong loan growth as we continue to implement our business strategy. Loans expanded by 8.67% QoQ, more aggressively than expected for this time of the year which calls for a seasonally weaker first half."

"This performance further demonstrates the strength 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 expand our loan portfolio by 15.01% YoY, mainly driven by our Infrastructure Banking business this quarter.  We expect Infrastructure financing to continue to be a main contributor to loan growth as the Government's plans to further strengthen the Mexican infrastructure materialize."

"Deposits expanded by 48.04% YoY mainly driven by institutional deposits, which together with the successful placement this quarter of two debt issuances of Certificados Bursatiles for 3.7 and 4.0 year terms has allowed us to further lower our cost of funding and enhance our balance sheet to capture the seasonal growth we expect for the second half of the year."

"Our efforts to expand our loan portfolio while maintaining our focus on diversifying funding sources and keeping tight cost controls, allowed us to improve our net income by 16.43% YoY." 

"We look to the future with great optimism, given our performance to-date and the pick-up in business activity, further supported by the Federal Government´s commitment to fulfill its infrastructure project plans. Our strong market knowledge and expertise position us well to continue to implement our growth strategy seizing the attractive opportunities we see in our markets," concluded Mr. Hank Gonzalez.

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.