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Interacciones' Q1 profit up 24.2% YOY

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Interacciones' Q1 profit up 24.2% YOY

Mexico's GrupoFinanciero Interacciones SA de CV posted a 24.21% rise in quarterlyprofit with net income of 508 million Mexican pesos for the first quarter of2016, up from 409 million pesos earned a year ago.

The company's main subsidiary, , contributed461 million pesos in profit for the three-month period, up 13.27% from theyear-ago period.

The result came as the company saw a 12.39% decline inprovisions for loan losses, falling to 396 million pesos from 452 million pesosa year earlier. What's more, the company said that it released some 633 millionpesos in allowance for loan losses created in prior years. The bank'snonperforming loan ratio was unchanged year over year at 0.15%.

The company's financial margin income, meanwhile, rose 5.19%to 669 million pesos from 636 million pesos, while its net interest margincontracted to 1.29% from 1.45% in the prior quarter and 1.57% a year earlier.Net commissions grew 3.82% to 489 million pesos. Other non-interest income,however, dropped 15.01% year over year to 1.27 billion pesos.

Return on equity for the quarter expanded to 14.27% from13.18% year over year, while return on assets was moved to 0.95% from 0.97%.

"While activity in the first half of the year is lower,following the seasonality of our business, we look at the rest of the year withgreat optimism and determination, as we continue leveraging the opportunitiesthat the liquidity dynamic in states and municipalities creates, in addition tothe value add that our newly formed leasing business line creates within ourmarket, propelling us to reach the goals we set for this 2016." CEO CarlosRojo Macedo said in an April 26 statement.

As of April 26, US$1was equivalent to 17.45 Mexican pesos.