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Higher commissions help Interacciones post 16.99% rise in Q4'16 profit


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Higher commissions help Interacciones post 16.99% rise in Q4'16 profit

Grupo Financiero Interacciones SA de CV reported an annual jump of 16.99% in its fourth-quarter 2016 profit as the bank saw substantially higher income from commissions.

The company posted net income of 792 million Mexican pesos for the three-month period, up from 677 million pesos in the year-ago period. Banking subsidiary Banco Interacciones SA Institución de Banca Múltiple contributed 711 million pesos to the group's quarterly result, up 12.32% from 633 million pesos a year earlier.

Grupo Financiero Interacciones' financial margin improved 43.91% to about 1.02 billion pesos from 706 million pesos in the fourth quarter of 2015. Net commissions, meanwhile, jumped 42.31% to 1.12 billion pesos from 787 million pesos.

The company's net interest margin improved to 1.88% from 1.78% in the linked quarter and 1.45% a year earlier.

Interacciones booked 493 million pesos in provisions for loan losses in the fourth quarter of 2016. A year earlier, it had recorded a provisions release of 138 million pesos.

Other noninterest income fell 11.78% annually to 1.51 billion pesos, while administrative and promotional expenses ticked 13.41% higher to 854 million pesos.

The bank's net loan portfolio grew 18.71% in the 12 months through December 2016 to reach about 113.57 billion pesos. Its nonperforming loan ratio fell to 0.05% from 0.09% in the previous quarter and 0.12% a year earlier.

Return on equity was 20.74%, up from 19.54% a year ago, while return on assets increased to 1.42% from 1.35%.

For full-year 2016, the bank showed net income of approximately 2.60 billion pesos, up 14.05% from 2.28 billion pesos in 2015.

As of Jan. 25, US$1 was equivalent to 21.35 Mexican pesos.