Grupo Financiero Interacciones Reports 19.41% ROE in 3Q15

MEXICO CITY, Oct. 21, 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 nine-month periods ended September 30, 2015.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "GFI reported another strong quarter despite the prevailing challenging market conditions.  ROE rose 230 basis points year-on year to 19.41%, with net income up 27.65% during the period to Ps.651 million for the quarter. We expanded our loan book by 28.53% year-on-year while maintaining a consistent focus on asset quality delivering a NPL ratio of 0.13%. On a sequential basis, loan growth showed a pick-up of 6.03%, and we expect to see very strong growth in the fourth quarter as lending activity follows our business trends seasonally increasing towards the end of the year. Notwithstanding, we significantly exceeded system growth of 13.9% annually and 2.7% quarterly."

"Leveraging our tailor-made approach and expertise, core fees and net commissions at the Banking Unit increased by 147.82% YoY and 34.08% sequentially, reflecting higher loan origination of 95.17%. Market volatility driven by the uncertain global environment, however, resulted in lower trading income and fees this quarter at our Brokerage Unit."

"Our strategy to achieve an optimal funding structure continues to show results, with funding sources up 22.23% year-on-year, equivalent to an additional Ps.17,493 million as we continued to drive growth of quality stable institutional demand deposits, which were up 17.06% on a quarterly basis. This strategy has allowed us to further improve our cost of funding and achieve a LCR ratio of 109.38%*, significantly above the 60% Basel III requirement. We remain focused on attracting stable deposits, according to Basel III and expect to continue issuing debt to further increase our funding diversification."

"On the expense front, our ongoing focus on cost controls across the organization, has allowed for significant improvements in efficiency evidenced in a 34.03% efficiency ratio compared with 49.90% a year ago".

"Despite the more challenging environment, we are very pleased with the results for the quarter and remain optimistic of the opportunities ahead as we continue to leverage our unique expertise and flexibility to adapt and grow in changing market conditions. Fourth quarter results are expected to benefit from strong seasonal loan growth driven by the migration of infrastructure projects from public works to public private partnerships, higher demand from projects, which require specialized and complex finance structuring. SME lending is also anticipated to increase following higher public spending trends towards the end of the year, while we also expect to see continued growth in our financing products designed for leasing companies servicing federal entities," concluded Mr. Carlos Rojo Macedo.

*Subject to revision by Banxico

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3Q15 EARNINGS CONFERENCE CALL

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A telephonic replay of the conference call will be available between 12:00 pm ET on October 22, 2015 and 11:59 pm ET on October 29, 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 9998148. 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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