Grupo Financiero Interacciones reports 15.44% ROE in 1Q17

MEXICO CITY, April 26, 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 three-month period ended March 31, 2017.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "We are very pleased with GFI's performance, not only because of this quarter's results, but because of the base for potential sustainable growth we have built, given the execution of the strategy we set in motion at the end of last year.

Through careful planning, we were able to distribute the maturities of the loans originated during the second half of 2016 and, as a result, we experienced a lower contraction in the loan portfolio relative to the end of year balance. Specifically, 10.21% in 1Q16 vs. 7.33% this quarter. Meanwhile, we increased loan origination by 131.78% relative to a year ago, reaching a loan portfolio of Ps.106,597 million by capitalizing on the opportunities brought forth by the implementation of the Financial Discipline Law, as well as by the execution of our current backlog worth Ps.17,972 million.

Additionally, our earnings grew by 21.65% relative to a year ago, which translated into an ROE of 15.44% leveraging a total YoY loan growth of 22.03%, and supported by a net commissions growth of 22.29%.

Our annual growth was supported by an increase of 28.02% in total deposits, thereby reaching a new record in terms of demand deposit balance of Ps.55,101 million that was obtained through a YoY increase of 49.63%. With this, institutional deposits comprise today 69.13% of GFI's total funding. This effort has been a major contributor in keeping our LCR above 100% on average, since we started this strategy in the 4Q13 and effectively lowered our cost of funds to the lowest level in our history.

With the current opportunities in our market, driven by the construction and rehabilitation of regional roads, the construction of a new set of hospitals, and the special economic zones, in addition to our robust backlog comprising 78 projects, we foresee a great year again for GFI, as states and municipalities strive to meet their infrastructure agendas for the year; moreover, given the opportunities in our horizon, we could be reviewing our guidance by the second half of 2017," 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 first quarter ending March 31, 2017 will be issued after the close of the U.S. market on Wednesday, April 26, 2017.

A simultaneous webcast of the conference call can be accessed by clicking the following link: 
https://www.webcaster4.com/Webcast/Page/1449/20440

A telephonic replay of the conference call will be available after 12:00pm on April 28, 2017 on GFI's Investor Relations website at www.investorsinteracciones.com.

About Grupo Financiero Interacciones
Grupo Financiero Interacciones, S.A. de C.V. ("Grupo Financiero 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: 6825
E-mail: iro@interacciones.com 

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