Market Overview

Grupo Financiero Interacciones reports operating income up 36.21% YoY and 10.70% QoQ, to Ps.993 million[1]

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Grupo Financiero Interacciones reports operating income up 36.21% YoY and 10.70% QoQ, to Ps.993 million[1]

- ROE of 15.70% in 1Q18, up 26 bps YoY.

- Bank's Financial margin ("SFI") up 38.22% YoY.

- Bank's Business Commissions ("SFI") up 38.39% YoY.

- NPL ratio of 0.03% in 1Q18, a 3 basis point YoY improvement.

PR Newswire

MEXICO CITY, April 25, 2018 /PRNewswire/ -- Grupo Financiero Interacciones, S.A.B. 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, 2018.

Grupo Financiero Interacciones Logo

To obtain the full text of this earnings release, please visit
http://www.investorsinteracciones.com/images/media/quartelyResults/2018/1Q18/1Q18_Earnings_Release_Ingles_VF.pdf

Executive Summary: Simplified Financial Information ("SFI")

Disclaimer: As a result of the uniqueness of our business model, we simplified GFI's financial information in an effort to make it more efficient for market participants to analyze our financial group. Simplified Financial Information ("SFI") is adjusted for valuation effects, non-recurring items and includes reclassifications of regulatory financial statements.

Fundamentals

  • As part of GFI's fundamentals during the quarter, states and municipalities presented a liquidity surplus of 14.5% relative to their originally budgeted infrastructure agenda, which is below last year's surplus of 16.5%, in addition to an annual three-month federal transfer growth of 5.6%.

Given this year's upcoming elections and its implications within the Financial Discipline Law's ("FDL") framework, states and municipalities covered their demand for short term needs through the use of factoring products, which have no debt ceiling within the FDL. State elections in particular not only made these debt acquisitions preferable to states and municipalities, but also accelerated them before the elections take place. GFI's expertise and deep understanding in the application of the FDL as well as its proactive approach in preparing its business model to leverage these opportunities, enabled it to offer and capture the most attractive opportunities available in the market.

It's important to note that GFI had to reconstitute its loan portfolio due to payments of Ps.109,479 million during the last twelve months.

Additionally, infrastructure spending in the country continues with a strong momentum of growth, reaching a 9 year high with Ps.14 billion invested in the month of January[2], which adds an additional driver of growth in conjunction with GFI's current pipeline of opportunities.

Simplified Financial Statements 

Grupo Financiero Interacciones






Simplified Financial Information ("SFI")

1Q18

4Q17

1Q17

Var.vs 

4Q17

1Q17

     Bank - Interest Income

3,242

3,027

2,679

7.10%

21.02%

     Bank - Interest Expense

-2,356

-2,159

-2,038

9.12%

15.60%

Bank's Financial Margin

886

868

641

2.07%

38.22%

     Provisions for Loan Losses

152

-269

39

-156.51%

289.74%

     Net Commissions

276

848

359

-67.45%

-23.12%

     Business Commissions

429

594

310

-27.78%

38.39%

     Temporary Commissions

-153

254

49

-160.24%

-412.24%

     Income from Brokerage Activities

142

22

100

545.45%

42.00%

     Other Operating Income (Expenses)

10

-22

40

-145.45%

-75.00%

     IPAB

-126

-123

-120

2.44%

5.00%

     Administrative and Promotional Expenses ("SG&A")

-488

-599

-433

-18.53%

12.70%

Subsidiary Result

-2

2

-

-200.00%

100.00%

Bank's Income before Income Taxes

850

727

626

16.92%

35.78%

Brokerage Unit's Income before Income Taxes

156

73

153

113.70%

1.96%

Insurance Unit's Income before Income Taxes

-4

111

-24

-103.60%

-83.33%

Extraordinary Items

-148

-136

-

8.82%

100.00%

Other Subsidiary Results

-11

-12

-26

-8.33%

-57.69%

     Taxes

-173

-96

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