Market Overview

Grupo Financiero Interacciones Reports 16.57% ROE in 2Q16

Share:

Net income up 20.47% QoQ and 13.12% YoY to Ps.612 million

Loan portfolio up 14.13% YoY to Ps.92,862 million

NPL ratio of 0.09% in 2Q16, a 5 basis point YoY improvement

MEXICO CITY, July 27, 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 six month periods ended June 30, 2016.

Mr. Carlos Rojo Macedo, Chief Executive Officer of Grupo Financiero Interacciones, commented: "We are very pleased with GFI's performance and how our business fundamentals have developed during this first half of the year. This second quarter, we reached a milestone in terms of growth, as we increased our loan portfolio balance by $8.5 billion during the month of June alone, the highest balance increase we have had in the last 32 months.

Additionally, we were able to increase loan origination by 32.78% relative to that of a year ago, while still maintaining our asset quality reflected by our NPL ratio of 0.09%. This heightened loan origination concentrated during the last month of the quarter, demanded greater costs in terms of the legal outsourcing services we normally use in our structuring, undermining earnings growth, but still reaching earnings of $612 million pesos representing a 13.12% YoY growth rate and 20.47% on a quarterly basis. Revenues were supported by net commissions, both annually and quarterly, given the effects of infrastructure projects originated during 1Q16. Meanwhile, our margins expanded 18.93% YoY and 16.44% QoQ, given the steady development in our loan portfolio mix. Our efficiency ratio was 34.61%, in line with our guidance and budget for the year. With this performance, we achieved an ROE of 16.57%, 230 basis points higher than that of last quarter."

"Our results also show a YoY loan portfolio expansion of 14.13%. An acceleration both, annually and quarterly, in the loan portfolio growth is evident, given the imbedded seasonality of our business model, which follows the infrastructure spending agenda of our clients. This acceleration was in the back of a 20% average liquidity surplus in states and municipalities as we focused to serve those, that still presented a deficit during the quarter, as well as those that had lower surpluses. We expect this trend to continue in the third quarter of the year, as we get prepared to absorb the growth during the fourth quarter; our strongest in terms of business activity. "

"We also continued with the liquidity strategy we have communicated in the past, growing deposits 19.71% on an annual basis and focusing on increasing the balance of our longest term deposits as demand for additional liquidity from our clients picks up as we go into the end of the year. In this regard, we also completed a Ps. 1.5 billion note "CEBURE" issuance to maintain the mismatch between assets and liabilities at our optimal operational range."

"Our performance this quarter was comfortably above our internal budgets for this time of the year and in line with our business model seasonality. With a pipeline close to Ps.11 billion in potential loan originations for the third quarter alone, we are excited about the prospects for the second half of the year and in particular the fourth quarter, as we execute on these opportunities reaching both, our guidance for the year, as well as our internal budget for 2017." concluded Mr. Rojo Macedo.                      

Main Indicators


Grupo Financiero Interacciones










Main Indicators

2Q16

1Q16

2Q15

Var.vs 


 6M16 

 6M15 

 Var. vs
 6M15 

1Q16

2Q15


Income Statement*










Financial Margin

779

669

655

16.44%

18.93%


1,448

1,291

12.16%

Provisions for Loan Losses

-495

-396

-436

25.00%

13.53%


-891

-888

0.34%

Commissions Charged

1,431

770

1,115

85.84%

28.34%


2,201

2,087

5.46%

Commissions Paid

-585

-281

-311

108.19%

88.10%


-866

-812

6.65%

Net Commissions

846

489

804

73.01%

5.22%


1,335

1,275

4.71%

Other Non-Interest Income

1,797

1,268

1,483

41.72%

21.17%


3,065

2,975

3.03%

Total Income

4,800

4,036

3,900

18.93%

23.08%


8,836

7,562

16.85%

Administrative and Promotional Expenses

-689

-610

-651

12.95%

5.84%


-1,299

-1,273

2.04%

Operating Income

807

650

740

24.15%

9.05%


1,457

1,293

12.68%

Net Income

612

508

541

20.47%

13.12%


1,120

950

17.89%











Main Indicators

2Q16

1Q16

2Q15

Var.vs 


 6M16 

 6M15 

 Var. vs
 6M15 

1Q16

2Q15


Balance Sheet*










Investment in Securities

98,289

114,284

93,335

-14.00%

5.31%


98,289

93,335

5.31%

Loan Portfolio

92,862

87,350

81,367

6.31%

14.13%


92,862

81,367

14.13%

Loan Portfolio (Net)

91,429

85,999

79,841

6.31%

14.51%


91,429

79,841

14.51%

Total Assets

212,017

216,433

191,237

-2.04%

10.87%


212,017

191,237

10.87%

Total Deposits

74,001

71,732

61,817

3.16%

19.71%


74,001

61,817

19.71%

Total Liabilities

196,988

201,914

178,145

-2.44%

10.58%


196,988

178,145

10.58%

Shareholders' Equity

15,029

14,519

13,092

3.51%

14.80%


15,029

13,092

14.80%











Main Indicators

2Q16

1Q16

2Q15

Var.vs 


 6M16 

 6M15 

 Var. vs
 6M15 

1Q16

2Q15


Main Indicators










NIM

1.50%

1.29%

1.46%

21bp

4bp


1.41%

1.51%

-10bp

Risk Adjusted NIM

0.55%

0.53%

0.49%

2bp

6bp


0.54%

0.47%

7bp

ROE

16.57%

14.27%

16.84%

230bp

-27bp


15.45%

15.38%

7bp

ROA

1.14%

0.95%

1.16%

19bp

-2bp


1.06%

1.07%

-1bp

Efficiency Ratio

34.61%

36.84%

35.63%

-223bp

-102bp


35.62%

36.86%

-124bp

Operating Efficiency Ratio

1.29%

1.14%

1.39%

15bp

-10bp


0.62%

1.43%

-81bp

NPL Ratio

0.09%

0.15%

0.14%

-6bp

-5bp


0.09%

0.14%

-5bp

Coverage Ratio

    16.47x

    10.47x

    13.39x

5.99x

3.09x


16.47x

13.39x

3.09x

*Millions of pesos










 

2Q16 EARNINGS CONFERENCE CALL

Date:      Thursday, July 28, 2016

Time:      9:00 am CT (México), 10:00 am ET

The conference call can be accessed by dialing +1-877-870-4263 (U.S/Canada), 001-855-817-7630 (Mexico Toll Free), or +1-412-317-0790 (Other International) and asking to be joined into Grupo Financiero Interacciones call.  The earnings release for the second quarter ending June 30, 2016 will be issued after the close of the U.S. market on Wednesday, July 27, 2016. A simultaneous webcast of the conference call can be accessed by clicking the following link: https://www.webcaster4.com/Webcast/Page/1449/16115

A telephonic replay of the conference call will be available after 12:00pm on July 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.

Contact:
Adolfo Werner Fritz Rubio, Corporate Development Officer & Head of Investor Relations
Telephone: +52 55 53 26 86 00 Ext: 67 49
E-mail: iro@interacciones.com

To obtain the full text of this earnings release, please visit http://www.investorsinteracciones.com/financial-information/quarterly-financial-results

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/grupo-financiero-interacciones-reports-1657-roe-in-2q16-300305196.html

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

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