Grupo Financiero Interacciones Reports 20.74% ROE in 4Q16

MEXICO CITY, Jan. 25, 2017 /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 twelve-month period ended December 31, 2016.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "We are very pleased with the 4Q16 results, as GFI reached a new loan origination record for the quarter yielding Ps.42 billion. This origination supported a loan growth of 18.24% YoY, which exceeded our guidance to the markets by 124 basis points.

Additionally, with this growth we generated earnings of 2,598 million representing a 14.05% increase relative to the last year and also represented by a 17.62% ROE for the year, exceeding guidance as well by 62 basis points. Furthermore, we managed to further lower our NPL ratio to 0.05% from 0.12% last year.

This year, more than any other, our resilience based on the adaptability of our business model has been highlighted, as we geared it towards leveraging profitable opportunities within the framework of political and regulatory changes in Mexico. This included a surplus in liquidity in states and municipalities, which coupled with 12 elections in Mexico and their implications within the Financial Discipline Law, delayed the acquisition of new loans by states and municipalities until the last quarter of the year. GFI's expertise and understanding of the Financial Discipline Law allowed it to leverage the existing opportunities in the market at the time to reach the aforementioned growth.

With this mindset, we did not stray away from the strategy adopted since the IPO, namely focusing our business in growing the infrastructure banking unit and now the recently formed leasing banking unit. This is why during 2016, you saw rapid growth from these two business units, reaching a 40.07% YoY increase in infrastructure through the financing of PPP structures and a 59.01% growth in our leasing unit, as we established our footprint within our market as first movers in the public leasing market sector.

Additionally, our liability management has also set new standards by reaching a record cost of funds of TIIE +9 bps at the end of the year, reducing the mismatch between assets and liabilities to an institutional record of 1.44 years.

We managed to increase total funding sources by 22.16% to Ps.123 billion, where most of this growth came from our deposits yielding a 44.25% YoY growth. It is important also to mention that this deposit growth did not only come from government related institutions, but also from AAA rated corporates in Mexico.

With these results, we have not only effectively reached and exceeded the guidance we set ourselves for the year, but we have also built a base that will help us grow even further into 2017 leveraging our expertise in the public sector and in the application of the Financial Discipline Law, as well as continuing our growth in infrastructure and leasing in line with our overall corporate strategy," concluded Mr. Carlos Rojo.

Main Indicators

The conference call can be accessed by dialing +1-844-824-3835 (U.S. / Canada), 001-855-817-7630 (Mexico), or 1-412-317-5160 (Other International) and asking to be joined into the Grupo Financiero Interacciones call.  The earnings release for the fourth quarter ending December 31, 2016 will be issued after the close of the U.S. market on Wednesday, January 25, 2017.

A simultaneous webcast of the conference call can be accessed by clicking the following link: https://www.webcaster4.com/Webcast/Page/1449/19199

A telephonic replay of the conference call will be available after 12:00pm on January 27, 2017 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 Financiero 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]

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

Related Links

http://www.grupofinancierointeracciones.mx