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.
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
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 |
-111 |
80.21% |
55.86% |
Net Income |
670 |
667 |
618 |
0.45% |
8.41% |
* Millions of pesos |
|||||
*Simplified Financial Information ("SFI") is adjusted for valuation effects, non-recurring items and includes reclassifications of regulatory financial statements | |||||
Main Indicators - Simplified Financial Information ("SFI") |
4Q17 |
3Q17 |
4Q16 |
Var.vs | |
3Q17 |
4Q16 | ||||
Main Financial Ratios |
|||||
Bank - Loan Portfolio Financial Margin |
3.08% |
3.12% |
2.31% |
-4bp |
76bp |
ROE - Bank |
15.76% |
18.22% |
15.20% |
-246bp |
56bp |
ROE - GFI |
15.70% |
16.14% |
15.44% |
-44bp |
26bp |
Bank´s Efficiency Ratio |
46.73% |
42.07% |
48.51% |
466pb |
-178bp |
NPL Ratio |
0.03% |
0.02% |
0.06% |
1bp |
-3bp |
Coverage Ratio |
39.05x |
62.41x |
23.34x |
-23.4x |
15.71x |
*Millions of pesos |
|||||
*Simplified Financial Information ("SFI") is adjusted for valuation effects, non-recurring items and includes reclassifications of regulatory financial statements | |||||
The QoQ change reflects the same dynamics in temporary commissions mentioned above, in addition to a 27.78% decrease in business commissions in line with GFI's intrinsic business model seasonality.
REGULATORY FINANCIAL STATEMENTS - Income Statement
Grupo Financiero Interacciones |
|||||
Regulatory Income Statement |
1Q18 |
4Q17 |
1Q17 |
Var.vs | |
4Q17 |
1Q17 | ||||
Interest Income |
5,000 |
4,491 |
4,256 |
11.33% |
17.48% |
Premium Income (Net) |
12 |
52 |
10 |
-76.92% |
20.00% |
Interest Expense |
-4,198 |
-3,272 |
-4,134 |
28.30% |
1.55% |
Net Increase in Technical Reserves |
- |
204 |
-3 |
-100.00% |
100.00% |
Damages, Claims and Other Obligations (Net) |
-5 |
-4 |
-8 |
25.00% |
-37.50% |
Financial Margin |
809 |
1471 |
121 |
-45.00% |
568.60% |
Provisions for Loan Losses |
152 |
-264 |
39 |
157.58% |
289.74% |
Financial Margin Adjusted for Credit Risk |
961 |
1207 |
160 |
-20.38% |
500.63% |
Commissions and Fees Charged |
699 |
1,667 |
806 |
-58.07% |
-13.28% |
Commissions and Fees Paid |
-308 |
-433 |
-208 |
-28.87% |
48.08% |
Commissions (Net) |
391 |
1,234 |
598 |
-68.31% |
-34.62% |
Income from Brokerage Actiities |
437 |
-115 |
769 |
-480.00% |
-43.17% |
Other Operating Income (Expenses) |
-114 |
-493 |
-84 |
-76.88% |
35.71% |
Administrative and Promotional Expenses |
-830 |
-1,072 |
-714 |
-22.57% |
16.25% |
Operating Income |
845 |
761 |
729 |
11.04% |
15.91% |
Equity in Results of Non-Consolidated Subsidiaries and Associates |
-2 |
2 |
- |
-200.00% |
-100.00% |
Income before Income Taxes |
843 |
763 |
729 |
10.48% |
15.64% |
Income Taxes |
-16 |
-270 |
-100 |
-94.07% |
-84.00% |
Deferred Income Taxes |
-157 |
174 |
-11 |
-190.23% |
1327.27% |
Income Before Discontinued Operations |
670 |
667 |
618 |
0.45% |
8.41% |
Discontinued Operations |
- |
- |
- |
0.00% |
0.00% |
Net Income |
670 |
667 |
618 |
0.45% |
8.41% |
Non-Controlling Interest |
- |
- |
- |
0.00% |
0.00% |
Total Net Income |
670 |
667 |
618 |
0.45% |
8.41% |
* Millions of pesos |
|||||
Main Indicators - Regulatory Income Statement |
1Q18 |
4Q17 |
1Q17 |
Var.vs | |
4Q17 |
1Q17 | ||||
Main Financial Ratios |
|||||
NIM |
1.35% |
2.65% |
0.21% |
-130pb |
114pb |
ROE - Bank |
15.76% |
18.22% |
15.20% |
-246pb |
56pb |
ROE -GFI |
15.70% |
16.14% |
15.44% |
-44pb |
26pb |
Bank´s Efficiency Ratio |
52.93% |
42.96% |
48.60% |
997pb |
433pb |
Efficiency Ratio - GFI |
54.50% |
51.12% |
50.85% |
338pb |
365pb |
NPL Ratio |
0.03% |
0.02% |
0.06% |
1pb |
-3pb |
Coverage Ratio |
39.05x |
62.41x |
23.34x |
-23.36x |
15.71x |
*Millions of pesos |
REGULATORY FINANCIAL STATEMENTS - Balance Sheet
Grupo Financiero Interacciones |
|||||
Regulatory Balance Sheet |
1Q18 |
4Q17 |
1Q17 |
Var.vs | |
4Q17 |
1Q17 | ||||
Cash and Due from Banks |
17,166 |
10,102 |
19,539 |
69.93% |
-12.14% |
Margin Accounts |
- |
- |
- |
0.00% |
0.00% |
Investment in Securities |
107,750 |
114,048 |
96,390 |
-5.52% |
11.79% |
Debtors Under Sale and Repurchase Agreements |
5 |
- |
4 |
100.00% |
25.00% |
Derivatives |
615 |
561 |
274 |
9.63% |
124.45% |
Total Loan Portoflio (Net) |
111,908 |
115,122 |
105,173 |
-2.79% |
6.40% |
Loan Portfolio |
113,431 |
116,807 |
106,597 |
-2.89% |
6.41% |
Performing Loan Portfolio |
113,392 |
116,780 |
106,536 |
-2.90% |
6.44% |
Commercial Loans |
113,253 |
116,383 |
106,368 |
-2.69% |
6.47% |
Commercial or Business Activity |
33,034 |
28,458 |
24,540 |
16.08% |
34.61% |
Financial Entities |
685 |
1,456 |
608 |
-52.95% |
12.66% |
Government Entities |
79,534 |
86,469 |
81,220 |
-8.02% |
-2.08% |
Consumer Loans |
19 |
270 |
20 |
-92.96% |
-5.00% |
Mortgages |
120 |
127 |
148 |
-5.51% |
-18.92% |
Non-Performing Loan Portfolio |
39 |
27 |
61 |
44.44% |
-36.07% |
Commercial Non-Performing Loans |
35 |
22 |
50 |
59.09% |
-30.00% |
Commercial or Business Activity |
22 |
22 |
50 |
0.00% |
-56.00% |
Government Entities |
13 |
- |
- |
100.00% |
100.00% |
Non-Performing Mortgages |
4 |
5 |
11 |
-20.00% |
-63.64% |
Allowances for Loan Losses |
-1,523 |
-1,685 |
-1,424 |
-9.61% |
6.95% |
Accounts Receivables Loan Derivatives, Discounts and Credits (Net) |
3 |
3 |
3 |
0.00% |
0.00% |
Premium Debtors (Net) |
19 |
60 |
59 |
-68.33% |
-67.80% |
Accounts Receivables from Reinsurers and Re-guarantee Companies (Net) |
288 |
444 |
804 |
-35.14% |
-64.18% |
Accounts Receivables (Net) |
4,661 |
4,122 |
6,572 |
13.08% |
-29.08% |
Foreclosed Assets (Net) |
58 |
133 |
164 |
-56.39% |
-64.63% |
Real Estate, Furniture & Equipment (Net) |
719 |
725 |
752 |
-0.83% |
-4.39% |
Investment in Subsidiaries |
70 |
73 |
61 |
-4.11% |
14.75% |
Deferred Taxes (Net) |
1,070 |
1,211 |
812 |
-11.64% |
31.77% |
Other Assets |
714 |
626 |
1,829 |
14.06% |
-60.96% |
Total Assets |
245,046 |
247,230 |
232,436 |
-0.88% |
5.43% |
Traditional Funding |
109,249 |
104,203 |
112,410 |
4.84% |
-2.81% |
Demand Deposits |
68,771 |
58,975 |
55,101 |
16.61% |
24.81% |
Term Deposits |
25,736 |
26,630 |
36,731 |
-3.36% |
-29.93% |
Credit Instruments Issued |
14,742 |
18,598 |
20,578 |
-20.73% |
-28.36% |
Bank Loans |
17,842 |
25,181 |
16,877 |
-29.14% |
5.72% |
Instant Loans Flexibility |
- |
590 |
- |
-100.00% |
0.00% |
Short Term |
10,119 |
10,008 |
6,271 |
1.11% |
61.36% |
Long Term |
7,723 |
14,583 |
10,606 |
-47.04% |
-27.18% |
Assigned Values For Liquidity |
- |
- |
- |
0.00% |
0.00% |
Technical Reserves |
560 |
711 |
1,222 |
-21.24% |
-54.17% |
Creditors For Repurchase / Resale Agreements |
91,867 |
91,783 |
76,508 |
0.09% |
20.08% |
Collateral Sold |
- |
- |
457 |
0.00% |
-100.00% |
Derivatives |
117 |
232 |
- |
-49.57% |
100.00% |
Valuation Ajustment For Financial Coverage Of Liabilities |
- |
- |
- |
0.00% |
0.00% |
Accounts Payables To Reinsurers And Re-Guarantee Companies |
8 |
65 |
79 |
-87.69% |
-89.87% |
Outstanding Debt In Securitization Transactions |
- |
- |
- |
0.00% |
0.00% |
Other Payables |
4,778 |
5,004 |
4,503 |
-4.52% |
6.11% |
Outstanding Subordinated Debt |
2,865 |
2,860 |
3,559 |
0.17% |
-19.50% |
Deferred Taxes And Employee Profits Sharing (Net) |
11 |
13 |
15 |
-15.38% |
-26.67% |
Deferred Credits And Advanced Collections |
397 |
390 |
454 |
1.79% |
-12.56% |
Total Liabilities |
227,694 |
230,442 |
216,084 |
-1.19% |
5.37% |
Paid-In Capital |
4,213 |
4,213 |
4,231 |
0.00% |
-0.43% |
Capital Stock |
2,345 |
2,345 |
2,345 |
0.00% |
0.00% |
Share Subscription Premiums |
1,868 |
1,868 |
1,886 |
0.00% |
-0.95% |
Subscribed Capital |
13,137 |
12,574 |
12,121 |
4.48% |
8.38% |
Capital Reserves |
801 |
801 |
671 |
0.00% |
19.37% |
Retained Earnings |
11,570 |
8,629 |
10,515 |
34.08% |
10.03% |
Surplus (deficit) from Mark-to-Market of Securities Available for Sale |
116 |
224 |
315 |
-48.21% |
-63.17% |
Foreign currency translation adjustment |
4 |
5 |
5 |
-20.00% |
-20.00% |
Results from Non-monetary Assets |
-24 |
-25 |
-3 |
-4.00% |
700.00% |
Net Income with Participation of Subsidiaries |
670 |
2,940 |
618 |
-77.21% |
8.41% |
Not Holding Interest |
2 |
1 |
- |
100.00% |
100.00% |
Shareholders' Equity |
17,352 |
16,788 |
16,352 |
3.36% |
6.12% |
* Millions of pesos |
RELEVANT EVENTS
This change is due to the implementation in advance of a new rule issued by the local regulator with respect to provisions for loan losses, which will be mandatory in 2019 and may be adopted by the Mexican banking system with prior notice to the relevant authority.
DISCLAIMER
The financial information referring to 1Q18 disclosed in this earnings report is unaudited and subject to adjustments and modifications in the future.
Adjustments and modifications identified when audit work is performed on the Company's year-end financial statements could result in differences from this unaudited financial information.
Simplified Financial Information ("SFI") is presented as supporting material to facilitate the analysis and understanding of the financial reporting of Grupo Financiero Interacciones and do not replace the regulatory financial statements.
1Q18 EARNINGS CONFERENCE CALL | |
Date: |
Thursday, April 26, 2018 |
Time: |
9:00 am CT (Mexico), 10:00 am ET |
The conference call can be accessed by dialing +1-844-824-3835 (U.S.A. / 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, 2018 will be issued after the close of the U.S. market on Wednesday, April 25, 2018.
A simultaneous webcast of the conference call can be accessed by clicking the following link: https://www.webcaster4.com/Webcast/Page/1449/25320
A telephonic replay of the conference call will be available after 12:00pm on April 27, 2018 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.
Contact:
Adolfo Werner Fritz Rubio, Corporate Development Officer & Head of Investor Relations
Telephone: +52-55-53-26-86-00 Ext: 6825
E-mail: [email protected]
[1] Operating Income excluding Extraordinary Items ("SFI") amounting to Ps.148 million in 1Q18 and Ps.136 million in 4Q17
[2] Source: El Economista
SOURCE Grupo Financiero Interacciones, S.A. de C.V.
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