Grupo Financiero Interacciones Reports 18.25% ROE in 3Q16

MEXICO CITY, Oct. 26, 2016 /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 nine month periods ended September 30, 2016.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "This quarter more than any other, GFI focused on infrastructure projects and leasing structures, being infrastructure in specific, our main area of concentration for future growth since the IPO.  With this mindset, we grew 36.08% YoY, and we look ahead at a promising pipeline of close to Ps.11 billion in future financings."

"Leasing has become another priority for us, given its benefits to our financial margin through our projected growth. Through this business line, we were able to grow 57.96% in loan portfolio and business commissions by 10.02% on a yearly basis, supporting our bottom line performance and reaching Ps.686 million, which represent a 5.38% growth, with an ROE of 18.25% for the quarter."

"We achieved these goals in a market that is currently on standby, given the surplus in liquidity in states and municipalities until the publishing of the rule set, regarding the Financial Discipline Law, during the fourth quarter. This gives us a significant growth potential, as we expect subnational borrowing will be reactivated after this rule set is published and added to our regular business model seasonality."

"This is further highlighted by the growth in the loan portfolio, which was 2.43x greater than that of the subnational credit market, while also maintaining our NPL ratio at 0.09%. With a promising pipeline of growth during the 4^th quarter, we find ourselves with the appropriate deposit base to match this growth with the liability side of the balance sheet. Our funding sources increased 12.68% relative to last year, simultaneously abiding to Basel III standards and increasing demand deposits by 36.08%. Additionally, and using our current program with the CNBV, we have been substituting CEBURES that reached maturity with longer term issuances to keep managing the mismatch between assets and liabilities."

"We find ourselves still with an attractive capital position at 18.64%, which we are eager to deploy into the rich opportunities we see during the fourth quarter and beyond."

"With these subnational fundamental dynamics, we are currently at a crossroads between the deferral of financings needs of states and municipalities that shifted from the third to the fourth quarter and the strongest seasonal period of every year for GFI in terms of growth, as well as for states in terms of spending needs. Hence, during the fourth quarter we see an attractive pipeline of opportunities worth Ps.38 billion, which will help us propel our growth and meet the guidance for the 2016."

The conference call can be accessed by dialing +1-844-824-3835 (EE.UU. / Canadá), 001-855-817-7630 (México), or 1-412-317-5160 (Other International) and asking to be joined into Grupo Financiero Interacciones call.  The earnings release for the second quarter ending September 30, 2016 will be issued after the close of the U.S. market on Wednesday, October 26, 2016.

A simultaneous webcast of the conference call can be accessed by clicking the following link: https://www.webcaster4.com/Webcast/Page/1449/17719

A telephonic replay of the conference call will be available after 12:00pm on October 28, 2016 on GFI's Investor Relations 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 http://www.investorsinteracciones.com/financial-information/quarterly-financial-results

Contact:
Adolfo Werner Fritz Rubio, Corporate Development Officer & Head of Investor Relations
Telephone: +52 55 53 26 86 00 Ext: 6980
E-mail: [email protected]

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

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