Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q4 2007 Earnings Presentation

22 slides from Intercorp Financial Services's earnings presentation, 2008

  1. Slide 1: Fourth Quarter 2007 Earnings Presentation

    Fourth Quarter 2007 Earnings Presentation

  2. Slide 2: Highlights

    Highlights Intergroup ¾ Intergroup’s year-end 2007 net income was S/.277.3 million, a 47.6% increase over 2006 ¾ Intergroup’s 4Q07 earnings per share were S/.0.66 (net income: S/.61.3mm), a 16% decrease from 4Q06. Earnings fell despite 36% growth in net financial margin, mainly due to non-recurring

  3. Slide 3: Intergroup Financial Services <IFS>

    INTERGROUP Intergroup FINANCIAL Financial SERVICES <IFS> Services 7

  4. Slide 4: Intergroup's net income rose 48% in 2007

    Intergroup’s net income rose 48% in 2007 Total Revenues Net Income* S/. million S/. million 28.2% 26.0% ROE 1200 350 30.0% 1081 1000 300 277 10.0% 845 250 800 -10.0% 200 188 600 -30.0% 150 400 -50.0% 100 200 50 -70.0% 0 0 -90.0% 2006 2007 2006 2007 *Attributable to IFS’ shareholders Intergroup 4 Man

  5. Slide 5: Net income fell in 4Q07, due to non-recurring items

    Net income fell in 4Q07, due to non-recurring items Total Revenues Net Income* S/. million S/. million 40.1% ROE 150 40.0% 292 27.9% 273 130 30.0% 19.0% 235 110 20.0% 90 85 10.0% 73 0.0% 70 61 -10.0% 50 -20.0% 30 -30.0% 10 -40.0% 4Q06 3Q07 4Q07 -10 4Q06 3Q07 4Q07 -50.0% *Attributable to IFS’ shareho

  6. Slide 6: Net earnings

    Net earnings Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Financial income 245 293 326 11% 33% Financial expenses -57 -77 -85 11% 48% Gross financial margin 188 217 241 11% 29% Provisions -29 -36 -26 -27% -11% Net financial margin 158 181 215 19% 36% Fe

  7. Slide 7: Interbank

    INTERGROUP FINANCIAL SERVICES <IFS> Interbank 7

  8. Slide 8: Interbank's net income remained stable YoY, fell 29% QoQ

    Interbank’s net income remained stable YoY, and fell 29% QoQ, due to non-recurring items Profit and Loss Statement Summary S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Financial income 205 261 281 8% 37% Financial expenses -53 -70 -74 5% 39% Gross financial margin 152 191 207 9% 36% Provisions -29 -

  9. Slide 9: Performing loans grew 47% YoY and 11% QoQ

    Performing loans grew 47% YoY and 11% QoQ Performing loans Breakdown of retail loans S/. million %chg %chg S/. million 4Q06 3Q07 4Q07 QoQ YoY Consumer loans: +47% Credit cards 711 763 842 10% 18% 6,059 Other consumer 875 1,186 1,280 8% 46% +11% Total consumer loans 1,587 1,949 2,123 9% 34% 5,473 Mor

  10. Slide 10: Growth in deposits remains strong, but slower compared to loans

    Growth in deposits remains strong, but slower compared to loans Funding Structure Deposit Breakdown S/. million %chg %chg 4Q06 3Q07 4Q07 +26% QoQ YoY 7,281 Deposits and obligations 5,763 6,818 7,281 7% 26% 6,818 489 6,343 Due to banks 482 987 1,451 47% 201% 5,987 684 5,763 1,302 Bonds and obligation

  11. Slide 11: NIM remains significantly above the industry average

    NIM remains significantly above the industry average Net Interest Margin (%) 8.6% 8.3% 8.2% 8.0% Interbank 7.8% 7.0% 7.0% 6.9% 6.9% Peruvian Banking 6.8% System 4Q06 1Q07 2Q07 3Q07 4Q07 Source: ASBANC Intergroup 11 Management Presentation

  12. Slide 12: Asset quality and coverage continued to improve

    Asset quality and coverage continued to improve Loan Provision Expense PDL & Coverage Ratios S/. million 5.50% 400% 100 3.50% 337% 90 350% 3.00% 4.50% 2.6% 2.7% 2.7% 80 % loans* 268% 300% 70 2.50% 241% 3.50% 235% 234% 2.0% 250% 60 2.00% 50 2.50% 200% 36.0 1.50% 1.9% 1.9% 40 1.1% 33.7 1.8% 29.1 26.2

  13. Slide 13: Net financial margin grew 29% YoY and 17% QoQ

    Net financial margin grew 29% YoY and 17% QoQ Interbank Net Financial Margin S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Financial Income: Loans 158 192 207 8% 31% Investments 24 27 29 9% 23% Other 24 42 45 8% 89% Total Financial Income 205 261 281 8% 37% Financial Expenses: Deposits 39 51 52 2% 34

  14. Slide 14: Fee income grew 19% YoY

    Fee income grew 19% YoY as a result of higher activities in credit cards, deposits and ATMs Fee Income from Financial Services, Net S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Credit and debit card 23 24 28 14% 21% Fees for sevices 25 30 28 -5% 10% Contingent operations 4 4 4 -13% 2% Fees for colle

  15. Slide 15: Branch network expanded, leading to higher expenses

    Branch network expanded, leading to higher expenses Distribution network Operating expenses Units S/. million 1,300 ATMs 250 Efficiency 55.2% ratio* 230 200 53.6% 1,100 1,010 180 51.3% 55.0% 210 156 824 900 788 160 50.0% 142 701 724 190 140 161 45.0% 700 170 120 111 100 40.0% 500 137 150 Branches 80

  16. Slide 16: Interbank's net income grew 42% in 2007

    Interbank’s net income grew 42% in 2007 Quarterly Yearly S/. million S/. million ROE* 46.8% ROE* 120 330 31.9% 40.0% 45.0% 22.0% 27.3% 37.3% 30.0% 100 40.0% 280 84.5 227.8 20.0% 30.2% 35.0% 230 80 10.0% 30.0% 60.0 180 160.9 59.6 25.0% 0.0% 60 20.0% -10.0% 130 113.3 40 15.0% -20.0% 80 10.0% 20 -30.0%

  17. Slide 17: Interseguro

    INTERGROUP FINANCIAL SERVICES <IFS> Interseguro 7

  18. Slide 18: Interseguro's net income fell 30% QoQ due to an increase in claims

    Interseguro’s net income fell 30% QoQ due to an increase in claims Profit and Loss Statement Summary S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Premiums 67 61 59 -2% -11% Premiums ceded -1 -1 -1 -8% 8% Fees -6 -6 -7 6% 17% Claims -30 -34 -44 29% 50% Change in reserves -45 -33 -32 -3% -29% Direct e

  19. Slide 19: Premiums have fallen 11% YoY due to a contraction in the annuities market

    Premiums have fallen 11% YoY due to a contraction in the annuities market Premiums by Business Line S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Individual Life 4 5 5 1% 11% Annuities 41 34 32 -7% -22% Group Life 5 5 6 5% 5% Disability and survivor benefits 12 13 13 4% 11% Mandatory traffic accident

  20. Slide 20: Investment income decreased by 16% YoY, but increased 16% QoQ

    Investment income decreased by 16% YoY, but increased 16% QoQ Investment Portfolio S/. million %chg %chg 4Q06 3Q07 4Q07 QoQ YoY Fixed Income 855 849 966 14% 13% Equity and Mutual Funds 337 327 287 -12% -15% Real estate 88 168 184 9% 109% Others 145 185 171 -7% 18% TOTAL 1,425 1,529 1,608 5% 13% Inve

  21. Slide 21: Interseguro's net income grew 82% in 2007

    Interseguro’s net income grew 82% in 2007 Quarterly Yearly S/. million S/. million ROE* 41.2% 30 65.3% 90 35.9% 70.0% 33.8% 79.0 40.0% 54.1% 80 25 30.0% 22.8 50.0% 70 ROE* 20.0% 20 30.0% 60 14.1% 10.0% 10.0% 50 43.3 0.0% 15 40 10.5 -10.0% -10.0% 31.2 10 30 -20.0% 7.3 -30.0% 20 -30.0% 5 -50.0% 10 -40

  22. Slide 22: Intergroup financial services

    CJ Intergroup financial services

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