Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q1 2014 Earnings Presentation

19 slides from Intercorp Financial Services's earnings presentation, 2014

  1. Slide 1: First Quarter 2014 Earnings Presentation

    First Quarter 2014 Earnings Presentation

  2. Slide 2: Intercorp Financial Services

    Intercorp Financial Services 2

  3. Slide 3: Highlights

    Highlights Intercorp Financial Services: • IFS net earnings were S/. 153.0 million in 1Q14, a decrease of 32.5% QoQ and 24.8% YoY • Excluding non-recurring items in both 4Q13 and 1Q13, IFS recurring net earnings increased 4.4% QoQ and 13.1% YoY • The QoQ recurring increase was driven by 4.9% higher

  4. Slide 4: IFS 1Q14 recurring net earnings increased 4.4% QoQ and 13.1% YoY

    IFS 1Q14 recurring net earnings increased 4.4% QoQ and 13.1% YoY IFS Interbank Interseguro Net income* Net income Net income S/. million ROE S/. million ROE S/. million ROE 28.2% 350 31.0% 27.2% 24.5% 25.0% 300 69.5% 20.1% 226.7 250 40.0% 203.4 (1) 200 9.4% 80.1 68.1 153.0 163.8 157.1 162.0 27.5 150

  5. Slide 5: IFS net earnings were S/. 153.0 million in 1Q14

    IFS net earnings were S/. 153.0 million in 1Q14 Intercorp Financial Services' Statement of Comprehensive Income S/. million %chg %chg 1Q13 4Q13 1Q14 QoQ YoY Financial income 585.9 675.9 711.4 5.2% 21.4% Financial expenses -138.9 -156.4 -166.3 6.3% 19.7% Gross financial margin 447.0 519.5 545.1 4.9%

  6. Slide 6: Interbank

    (J Intercorp Financial Services

  7. Slide 7: Interbank's net income was S/. 162.0 million in 1Q14

    Interbank’s net income was S/. 162.0 million in 1Q14 Interbank's Statement of Comprehensive Income S/. million % chg % chg 1Q13 4Q13 1Q14 QoQ YoY Financial income 552.5 637.2 666.7 4.6% 20.7% Financial expenses -138.7 -156.0 -165.3 6.0% 19.2% Gross financial margin 413.8 481.3 501.4 4.2% 21.2% Provi

  8. Slide 8: Loan growth remained strong at 27.2% YoY

    Loan growth remained strong at 27.2% YoY Performing loans Breakdown of loans S/. million % chg % chg 1Q13 4Q13 1Q14 QoQ YoY S/. million Consumer loans: Credit cards 2,017 2,543 2,637 3.7% 30.8% Other consumer 2,833 3,125 3,198 2.3% 12.9% Total consumer loans 4,850 5,668 5,836 3.0% 20.3% +27.2% Mortg

  9. Slide 9: Interbank's deposits grew 4.5% QoQ and 31.9% YoY

    Interbank’s deposits grew 4.5% QoQ and 31.9% YoY Funding Structure Deposit Breakdown S/. million % chg % chg 25,000 1Q13 4Q13 1Q14 QoQ YoY +31.9% 21,178 Deposits 16,060 20,266 21,178 4.5% 31.9% 20,266 Due to banks 3,406 2,881 2,767 -3.9% -18.8% 1,033 20,000 19,026 1,021 Bonds 2,809 3,072 3,950 28.6%

  10. Slide 10: Gross financial margin increased 4.2% QoQ and 21.2% YoY

    Gross financial margin increased 4.2% QoQ and 21.2% YoY Interbank's Gross Financial Margin S/. million % chg % chg 1Q13 4Q13 1Q14 QoQ YoY Financial income: Interest on loans 459.6 552.7 570.7 3.3% 24.2% Fees on loans 61.1 64.6 74.0 14.6% 21.2% Investment income 10.9 14.9 18.1 21.0% 66.4% Interest on

  11. Slide 11: NIM remains above the industry's average

    NIM remains above the industry’s average Net Interest Margin (%) * 8.8% 8.2% 7.7% 7.6% 7.2% 6.9% 7.0% 7.0% 6.9% 6.4% 6.3% 6.4% 6.3% 6.2% 6.2% 6.0% 5.9% 6.0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Interbank Industry * Gross financial margin / Average interest-earning assets. The gross financial

  12. Slide 12: PDLs increased 10 bps to 1.9%, yet provision expenses grew only 0.7% QoQ

    PDLs increased 10 bps to 1.9%, yet provision expenses grew only 0.7% QoQ PDL & Coverage Ratios Loan Provision Expense S/. million Provision expense* Loans 3.00% 220 228.1% 3.20% 2.50% 226.2% 225.9% 226.5% 235.00% 2.4% 211.8% 170 2.1% 2.0% 2.0% 1.9% 2.20% 2.00% 185.00% 1.20% 120 1.50% 94.6 94.7 95.3

  13. Slide 13: Fee income and ROF decreased 3.8%, while operating expenses declined 8.7% QoQ

    Fee income and results from financial operations (ROF) decreased 3.8%, while operating expenses declined 8.7% QoQ Fee income & ROF Operating expenses S/. million S/. million (Fee income + ROF) / operating revenues Efficiency ratio* ROF Net fee income 52.1% 29.0% 400 50.0% 27.8% 47.9% 47.2% 46.4% 23.

  14. Slide 14: Interbank's BIS ratio reinforced by a Tier II subordinated bond issuance

    Interbank’s BIS ratio reinforced by a Tier II subordinated bond issuance Tier II Tier I 16.8% 14.4% 13.7% 13.4% 13.3% 6.2% 11.5% 4.7% 3.2% 3.0% 3.7% 1.5% Additional Regulatory Capital 10.8% Requirement 2.9% 9.8% 10.0% Total Regulatory Minimum 2.7% 9.5% 9.1% 10.5% 10.3% 10.6% 9.7% 9.7% 8.1% 8.6% (1)

  15. Slide 15: Interseguro

    Interseguro (J Intercorp Financial Services 15

  16. Slide 16: Interseguro's net income was S/. 9.2 million in 1Q14

    Interseguro’s net income was S/. 9.2 million in 1Q14 Profit and Loss Statement Summary S/. million % chg % chg 1Q13 4Q13 1Q14 QoQ YoY Premiums 134.0 152.4 166.8 9.5% 24.5% Premiums ceded -1.2 -1.5 -1.5 -1.6% 23.0% Fees -4.1 -10.8 -11.9 10.0% 192.7% Claims -39.1 -46.4 -50.9 9.7% 30.3% Change in reser

  17. Slide 17: Premiums grew 9.5% QoQ and 24.5% YoY supported by higher sales in annuities

    Premiums grew 9.5% QoQ and 24.5% YoY supported by higher sales in annuities and almost all other business lines Premiums by Business Line S/. million % chg % chg 1Q13 4Q13 1Q14 QoQ YoY Individual Life 6.2 7.4 7.7 3.4% 22.8% Annuities 104.6 103.3 117.6 13.9% 12.4% Group Life 12.2 22.0 23.0 4.7% 88.3%

  18. Slide 18: Investment income declined mainly due to extraordinary gains from real estate

    Investment income declined mainly due to extraordinary gains from real estate investments reported in 1Q13 and 4Q13 Investment Income, Net S/. million % chg % chg 1Q13 4Q13 1Q14 QoQ YoY Income: Fixed Income 43.7 41.3 43.6 5.5% -0.2% Interest 33.4 38.2 42.7 11.7% 27.9% Realized Gains 10.3 3.1 0.9 -70

  19. Slide 19: Slide 19

Intercorp Financial Services — Q1 2014 Earnings Presentation on 6ix