Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Investor Presentation (March 2022)
48 slides from Intercorp Financial Services's investor presentation, March 2022
Slide 1: Management Presentation March 2022
Management Presentation March 2022
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This corporate presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this corporate presentation regarding Interbank’
Slide 3: Interbank at a glance
CJ Interbank Interbank at a glance
Slide 4: Leading bank in Peru with strong financial performance
Leading bank in Peru with strong financial performance Financial highlights Leading position in the Peruvian financial system(1) As of December 31, 2021 Assets S/ 68,112 mm 1 2 1 Gross loans S/ 43,041 mm 19.1% 22.6% 25.2% Deposits S/ 44,990 mm Market share in Market share in ROE consumer loans payro
Slide 5: Solid capital ratios
Solid capital ratios Key initiatives Capital ratio evolution Solvency Banking ▪ Capitalized 2019 earnings to strengthen CET1 System 14.7% 15.1% 15.1% 14.9% and TCR ratio TCR ▪ Called US$ 200 million hybrid Tier 1 bond in 17.0% 12.5% 15.8% 15.9% 11.6% 11.5% April 2020 to reduce interest expense on 15
Slide 6: Intercorp Group: striving to make Peru the best place to raise a family in Latin America
Intercorp Group: striving to make Peru the best place to raise a family in Latin America Financial services Retail US$ 7.2bn Revenues in 2020 ~3.7% of Peru 2020 GDP Education Other (1) Source: Company information and BCRP. 5 1) Related companies excluding Aviva and Urbi.
Slide 7: Strategically positioned to capture significant growth opportunities in Peru
Strategically positioned to capture significant growth opportunities in Peru What differentiates us How we do it Universal franchise Customer Ready-to-scale Deep knowledge Digital first Innovation at with strong focus centricity omnichannel of Peruvians strategy the core on retail platform through a
Slide 8: Milestones in Interbank's history
Milestones in Interbank’s history Interbank issues $300 million in subordinated Tier 2 bonds in the international capital markets Interbank issues $200 Interbank issues $200 million in senior bonds million in hybrid Tier 1 in the international bonds in the capital markets, IFS executes a SEC Interco
Slide 9: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at Interbank expected to continue in 2022
Slide 10: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at Interbank expected to continue in 2022
Slide 11: Strong recovery in core indicators
1 Strong recovery in core indicators Credit cards turnover Credit card sales Mortgage disbursements S/ billion Thousand units S/ billion +21% -8% +33% 10.4 2.7 8.6 287.7 266.0 2.0 6.6 1.6 114.8 2019 2020 2021 2019 2020 2021 2019 2020 2021 Debit cards turnover Consumer loans disbursements Payroll ded
Slide 12: Consumer loans grew 14% YoY, gaining 60 bps in market share
Consumer loans grew 14% YoY, gaining 60 bps 1 in market share Performing loans Breakdown of loans S/ million S/ million %chg %chg System’s growth(1) +4% 4Q20 3Q21 4Q21 QoQ YoY Consumer loans +7% Credit cards & other loans 6,250.2 6,619.5 7,503.3 13.4% 20.0% Payroll deduction loans(2) 4,318.9 4,611.2
Slide 13: 10% growth in retail deposits, market share at 15%
1 10% growth in retail deposits, market share at 15% Funding structure Funding breakdown S/ million S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY LDR(2) 93% 90% 96% Deposits 44,596.2 46,585.1 44,989.5 -3.4% 0.9% System’s Retail 20,810.5 23,290.7 22,911.8 -1.6% 10.1% 97% 100% 104% LDR(2) Commercial(1)
Slide 14: Expense growth driven by recovery activity and digital investments
Expense growth driven by recovery activity 1 and digital investments Optimizing our distribution channels Disciplined cost control helps efficiency Units Total expenses(3) (S/ mm) 2018 2021 % Change Financial 270 189 -30% stores 1,696 1,570 1,491 ATMs 1,975 1,581 -20% 1,444 Correspondent 2,506 3,157
Slide 15: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at Interbank expected to continue in 2022
Slide 16: Solid risk management capabilities
2 Solid risk management capabilities Better asset quality than the system despite focus on retail Balanced asset quality among businesses PDL ratio evolution PDL ratio as of December 2021 Interbank System Commercial loans Retail loans Total loans 3.8% 3.8% Scotiabank Scotiabank 4.3% 3.0% Scotiabank
Slide 17: Risk-adjusted NIM recovering, contribution of consumer loans still below pre COVID-19 levels
Risk-adjusted NIM recovering, contribution of 2 consumer loans still below pre COVID-19 levels Yield on loans after provisions NIM after provisions 8.9% 11.4% 5.8% Yield 9.6% 4.4% 4.2% 4.8% 8.1% 8.3% 8.0% NIM 3.9% 3.9% on loans 8.6% 9.7% 3.9% 8.5% 6.9% 5.1% 3.3% 4.2% 4.2% 3.1% 1.4% 0.9% 4Q20 3Q21 4Q
Slide 18: Rescheduled loans decreased 50% from peak
2 Rescheduled loans decreased 50% from peak Interbank – Loan rescheduling Interbank – Retail loans rescheduling S/ billion S/ billion Clients 332 441 252 (Thousand) Clients 343 459 262 Rescheduled 34% 43% (Thousand) 21% balance (%) -48% Dec21/Jun20 Rescheduled 8.6 30% 31% 15% 6.9 balance (%) 4.5 12.
Slide 19: Reactiva Peru loan balances down 26% YoY
2 Reactiva Peru loan balances down 26% YoY Reactiva Peru loan balances by segment S/ million, Local GAAP -26% 4Q21 2021 Segment 6,617 %chg YoY Rescheduled 110 573 5,510 94 Corporate -53% 6% 338 4,929 85 272 3,807 Mid-sized -26% 35% 3,050 2,808 SME -17% 53% 2,126 2,028 1,764 Total -26% 40% 4Q20 3Q21
Slide 20: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at Interbank expected to continue in 2022
Slide 21: "Two-tier" digital strategy to foster growth
“Two-tier” digital strategy to foster growth 3 1. Digitalization +26 NPS 100% digital customers 2. New growth vs. non-digital customers 100% digital services points Payments | Neobank | Open Banking Consolidating growth Piggy bank My Finances Rewards program 100% digital Digital wallet P2P & QR code
Slide 22: Strong progress in our digital indicators
Strong progress in our digital indicators 3 1. Digitalization 100% digital services Digital users 100% digital customers Digital sales % of digital users 100% digital customers % of products sold digitally 80% 58% 59% 56% 75% 50% 42% 63% 32% Dec19 Dec20 Dec21 Dec19 Dec20 Dec21 Dec19 Dec20 Dec21 Savi
Slide 23: Tunki, our ally to bank the unbanked
Tunki, our ally to bank the unbanked 3 2. New growth Tunki 1st digital wallet delivering Government’s financial aid Users Micromerchants Transactions Million Thousand 1.6 314 7x 1.7MM Transactions 0.8 (Jan22) (2021 vs. 2020) 17 2020 2021 2020 2021 2x Users 19x Micromerchants 22
Slide 24: Plin, 6 million users in 2 years
Plin, 6 million users in 2 years 3 2. New growth Plin Users(1) IBK - Micromerchants Million Thousand IBK’s MS 39% 42% 568 5.7 6MM 2.6 (Jan22) 190 (2) 2020 2021 2020 2021 Daniel Jiménez Talledo 2x Users 3x Micromerchants Transactions(1) Partners 4x Transactions (2021 vs. 2020) 23 1) Figures including
Slide 25: Rappibank, a new way of banking
Rappibank, a new way of banking 3 2. New growth - at early stage Rappibank Accounts Credit cards NPS Thousand Thousand 55 209 24 223K (Jan22) - 67K (Jan22) 65 points NPS (Dic-21) 2020 2021 2020 2021 Launch date: Feb21 Launch date: May21 24
Slide 26: Shopstar, preferred e-commerce platform for Interbank customers
Shopstar, preferred e-commerce platform for Interbank customers 3 2. New growth - at early stage Shopstar 15% of miles redeemed Users GMV(1) Share of wallet Thousand S/ million % 68 63 11% 8 6 1% 2020 2021 2020 2021 2020 2021 8x Users 10x GMV(1) 1st E-commerce for IBK’s customers 25 1) Gross merchan
Slide 27: Our "two-tier" digital strategy allowed us to grow our customer base ~20%
Our “two-tier” digital strategy allowed us to grow our customer base ~20% 3 Retail customers 100% digital customers Commercial customers Million Million Thousand 4.6 3.9 1.6 127 3.4 103 1.3 71 0.6 2019 2020 2021 2019 2020 2021 2019 2020 2021 +13% +18% +2x +20% +44% +24% (2020) (2021) (2020) (2021) (
Slide 28: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at Interbank expected to continue in 2022
Slide 29: Underlying macro trends in 2022
Underlying macro trends in 2022 4 GDP LTM Inflation (%Chg YoY) (%Chg YoY) 13.3% 13.3% 12.0% 6.4 CPI %Chg YoY 6.2 6.4% 5.2 2021 6.43 3.3 2.7 2.6 -9.2% TB 3.4% 2022E 2.90 -11.3% U Jan21 Mar21 Jun21 Sep21 Dec21 2021 2022(E) Jan21 Mar21 Jun21 Sep21 Dec21 Feb22 Peru vs. LatAm peers Interest rates (Index;
Slide 30: Interbank: operating trends 2022
Interbank: operating trends 2022 4 Capital Loan growth 2022 IBK TCR >15% High single digit growth in total loans led by double IBK CET1 >11% digit growth in consumer loans(1) To remain at sound levels Revenues Cost of risk Total revenues recovering Still below pre COVID-19 levels 1) Excluding (i) Re
Slide 31: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 32: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 33: Rebalanced loan portfolio due to Reactiva Peru
Rebalanced loan portfolio due to Reactiva Peru Distinctive loan breakdown… …when compared to the banking system Gross loans breakdown (as of December 2021) Gross loans breakdown (as of December 2021) Banking System Commercial Commercial 50.9% 68.1% Mortgages Mortgages 40.6% Consumer Consumer loans R
Slide 34: Diversified funding base with strength in retail deposits
Diversified funding base with strength in retail deposits Consistently delivering higher deposit growth than the system A growing retail deposit-gathering franchise Total deposits growth evolution Total retail deposits growth evolution MS 2016 12.6% MS 2021 13.4% MS 2016 12.8% MS 2021 15.0% 10.9% 14
Slide 35: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 36: Sustained assets growth supported by appropriate funding
Sustained assets growth supported by appropriate funding Total gross loans Total deposits S/ mm S/ mm CAGR 9.8% CAGR 12.8% 41,594 43,041 44,596 44,990 36,166 32,518 35,610 31,323 2018 2019 2020 2021 2018 2019 2020 2021 Total assets Net shareholders’ equity S/ mm S/ mm CAGR 13.1% CAGR 8.6% 67,824 68,
Slide 37: Strong recovery in revenues and profitability
Strong recovery in revenues and profitability Total revenues (1) Net interest margin (NIM) S/ mm 4,093 (2) 3,791 3,766 5.7% 5.9% 3,614 4.8% 3.9% 2018 2019 2020 2021 2018 2019 2020 2021 Net profit ROE S/ mm 1,222 1,201 21.3% 22.0% 1,040 19.1% 265 4.3% 2018 2019 2020 2021 2018 2019 2020 2021 Source: I
Slide 38: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 39: A "Great Place to Work" with a distinctive culture
A “Great Place to Work” with a distinctive culture and strong sense of achievement for new talent Our commitment to fostering a performance-based culture is demonstrated by being ranked among the top Peruvian and Latin American companies #1 in Peru #1 in Latin America in 2022 in 2021 #11 for women i
Slide 40: Strong corporate governance
Strong corporate governance Board of Directors BOD with majority of independent members Carlos Rodríguez-Pastor Chairman Interbank: 5 out of 9 Strong corporate Ramón Barúa Fernando Zavala governance Director Director Relevant committees: Felipe Morris Cayetana Aljovín - Audit Director Independent Di
Slide 41: Sustainability as a future competitive advantage
Sustainability as a future competitive advantage Recognitions 2022 ESG focus Objective Initiatives Microlending | Contextual 1 Promote inclusion and bancarization payment solutions | Shared value and volunteering Companies with 2 Environment and sustainable finance ESG finance | Eco-efficiency plan
Slide 42: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 43: Appendix
CJ Interbank oom ae Appendix
Slide 44: Resilient financial system
Resilient financial system Steady loan growth Profitability recovering after COVID-19 pandemic Banking system gross loans (S/ bn) Banking system net profit (S/ mm) ROAE 18.5% 18.5% 4.0% 13.3% CAGR +8.9% CAGR 2018-21 350 326 9,082 271 286 8,220 10.6% 7,218 222 238 176 181 5.5% 2,112 95 105 104 112 20
Slide 45: Interbank's income statement
Interbank’s income statement % chg % chg % chg Incom e S t a t e m e nt ( S / m m ) 2018 2019 2020 2021 '19 / '18 '20/ '19 '21/ '20 Interest income 3,589.8 4,094.8 3,865.1 3,510.8 14.1% (5.6%) (9.2%) Interest expenses (1,040.7) (1,231.0) (983.9) (811.0) 18.3% (20.1%) (17.6%) Gr os s fina ncia l m a
Slide 46: Interbank's balance sheet
Interbank’s balance sheet % chg % chg % chg Fina ncia l S t a t e m e nt s 2018 2019 2020 2021 '19 / '18 '20/ '19 '21/ '20 As s e t s Cash and due from banks 8,209.9 9,861.5 17,716.8 14,413.6 20.1% 79.7% (18.6%) (1) Investments, net 5,790.4 5,559.4 8,951.2 10,047.1 (4.0%) 61.0% 12.2% Loan portfolio,
Slide 47: Definitions
Definitions Concept Definition Total revenues Gross financial margin + fee income from financial services, net + gain on financial transactions Efficiency ratio (Administrative expenses + Depreciation + amortization) / (total revenues) NIM (Annualized gross financial margin) / (Average interest-earn
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