GrupoFinanciero Inbursa S.A.B. de C.V. posted a net profit of about 2.11billion Mexican pesos for the first quarter of 2016, down 47.5% from 4.01billion pesos earned in the first quarter of 2015.
In April 27 report, the company noted that in the year-agoperiod, Banco InbursaSA released about 3.49 billion pesos of excess credit reservescoming from a regulatory change in methodology.
Interest income on total loans for the first quarter grew23% to 4.82 billion pesos, from 3.90 billion pesos a year earlier. Net premiumswritten reached 5.15 billion pesos in the first quarter, up about 36.9% fromthe 3.76 billion pesos in the first quarter of 2015.
The group booked 2.16 billion pesos in interest expenses forthe first quarter, ticking up 4.8% year over year from 2.06 billion pesos. Loanloss provisions for the group stood at 1.79 billion pesos, 83.1% higherannually from the 979 million pesos a year earlier.
Banco Inbursa booked market-related losses of 2.03 billionpesos in the first quarter, compared to losses of 1.33 billion pesos in thefirst quarter of 2015. This was mainly attributed to a decrease of long-term interestrates that affected the marking to market of long-term fixed rates fundingposition and stocks valuation of financial assets, the company said.
Grupo Financiero Inbursa's total loan portfolio totaled243.46 billion pesos as of March 2016, 12% higher than the 217.73 billion pesosfrom a year earlier. It added that the company board will propose in an April29 meeting a per-share dividend payment of 44 centavos.
As of April 27, US$1was equivalent to 17.43 Mexican pesos.