23 slides from Intercorp Financial Services's investor presentation, November 2010
Slide 1: Management Presentation November 2010
Management Presentation November 2010
Slide 2: Disclaimer
Disclaimer This presentation is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission, or an exemption from registration. Intergroup
Slide 3: Investment highlights
Investment highlights Peru is an economic and social success with outstanding macroeconomic Strong economic performance and financial The Peruvian financial system is strong and has solid performance indicators system Banking and insurance industries with high growth potential Leading retail bank an
Slide 4: Intergroup – A leading financial services company in Peru
Intergroup – A leading financial services company in Peru Float 72.12% 27.88% 99.29% 100.00% # 1 provider of credit card financing Life insurance company: # 1 private bank in payroll loans to public # 1 provider of annuities sector # 4 by total premiums # 2 provider of consumer loans # 4 bank by tot
Slide 5: Intergroup financial highlights
Intergroup financial highlights Intergroup financial highlights (S/. million) 2010 2005 to 2010 2007 2008 2009 September CAGR Total assets 11,943 16,617 18,250 20,408 22.7% Total loans (1) 6,059 9,176 9,950 11,335 26.3% Retail loans (2) 2,943 4,389 4,877 5,514 27.3% Total deposits 7,281 9,648 11,490
Slide 6: 1. Strong economic and financial system
1. Strong economic and financial system 6
Slide 7: Peru is an economic and social success…
Peru is an economic and social success… Impressive economic growth Low inflation environment Real GDP Growth Inflation 05-09 Average annual growth rate 05-09 Average annual inflation rate Annual variation as of June 2010 Annual variation(1) 11.0% 8.4% 6.7% 7.5% 8.3% 6.8% 6.1% 6.2% 5.8% 4.3% 4.4% 4.9
Slide 8: …with strong macroeconomic fundamentals
…with strong macroeconomic fundamentals Responsible fiscal policy Solid reserve position Budget Balance (% GDP) Net International Reserves (% GDP)(1) 3.2% 26.7% 2.1% 2.2% 18.6% 16.1% 15.1% 10.7% 10.4% -0.3% -1.0% -1.7% -1.4% -1.9% 2003 2004 2005 2006 2007 2008 2009 2010E Peru Argentina Chile Brazil
Slide 9: The banking system has experienced profitable, solid growth…
The banking system has experienced profitable, solid growth… Performing loans (S/. billion) ROE (%) (2) Retail loans (1) 2005-2010 3Q Net income (S/. million) Other loans 100.1 CAGR ROE (%) 31.1% 89.9 89.9 20.0% 27.9% 24.7% 24.7% 25.1% 23.9% 65.8 22.2% 68.9% 69.6% 68.7% 48.3 20.4% 42.1 68.6% 67.3% 3
Slide 10: …and has significant growth potential
…and has significant growth potential Banking penetration Retail loan penetration Deposits / GDP (%) Consumer loans / GDP (%) Mortgage loans / GDP (%) 72% 32% 21% 37% 15% 30% 28% 23% 3% 10% 8% 7% 2% 3% 11% 12% 2% 7% 5% 5% Chile Brazil Colombia Peru Argentina Chile Brazil Colombia Peru Argentina Cred
Slide 11: High growth potential also in the insurance industry
High growth potential also in the insurance industry Total assets (S/. million) Life insurance premiums in Peru (S/. million) Annuities Individual life Group life Pension .2 % % 42 R 11.4 16,324 8.7% 2,054 2,176 CAG CAGR 14,137 1,832 14% 12,753 17% 1,587 1,597 1,530 10,970 1,470 18% 9,821 27% 16% 18
Slide 12: 2. Leading Franchise in Financial Services
2. Leading Franchise in Financial Services 12
Slide 13: IFS: strategic focus on retail banking and annuities
IFS: strategic focus on retail banking and annuities Commercial Retail Banking Capital Markets Annuities Life Insurance Non-life Insurance Banking 77% of 16% of 7% of 49% of Loans (1) 51% of Loans (1) Premiums Premiums Premiums 68% of Financial 32% of Financial income (1) income (1) Payroll 33% Cred
Slide 14: A clear and consistent strategy
A clear and consistent strategy Convenience Unique value Speed proposition Service Professional management team with significant local and Experienced international experience management team & Interbank and Interseguro ranked among the 20 best companies to motivated workforce work for in Latin Amer
Slide 15: Leading position in retail banking and annuities
Leading position in retail banking and annuities Consumer loans market share (1) Credit cards market share (1,2) 2006 2006 2010 3Q 2010 3Q 22.3% 21.8% 19.8% 21.1% 19.1% 20.9% 18.6% 16.6% 17.0% 16.2% 17.1% 15.6% 13.8% 11.4% 7.2% 5.9% BCP Interbank Scotiabank BBVA Interbank BCP Scotiabank BBVA Number
Slide 16: 3. Demonstrated Ability to Deliver Results
3. Demonstrated Ability to Deliver Results 16
Slide 17: Significant asset growth
Significant asset growth Intergroup’s total assets Interbank’s performing loans Interseguro’s investment portfolio Loans, net Investments Commercial Credit cards 7 000 Fixed Income Equity and Mutual Funds Cash and due to banks Others 1 8 , 000 Other consumers Mortgages Real Estate Others Yield S/. m
Slide 18: Strong asset quality
Strong asset quality PDL & Coverage ratios - Interbank Loan Provision Expense - Interbank PDL ratio Coverage ratio (1) S/. million 337.0% 283.1% 266.6% 235.0% 264.1% 4 5 0 5 . 0 0 % 4.0% 176.0% 3.8% System: 230.8% 3.6% 3.5% 3.2% 3.0% 2.7% 2.9% 3 7 0 363 2 9 0 274 280 0 . 0 0 % 1.9% System: 1.6% 232
Slide 19: Stable funding and responsible capital management
Stable funding and responsible capital management Funding mix - Interbank BIS ratio - Interbank (1) Deposits Lines of credit Long term loans Others Tier I 15,976 Tier II 8% 15.4% 14,305 6% 9% 13,121 5% 9% 11% 4.9% 7% 5% 12.1% 11.8% 11.5% 14% Retail 10.8% 1.8% 10.3% 42% 3.0% 8,912 1.4% 2.9% 3% 2.7% R
Slide 20: Consistent and strong revenue growth with improvements in efficiency
Consistent and strong revenue growth with improvements in efficiency Operating revenues - Intergroup (S/. million) Operating expenses - Intergroup (S/. million) Gross financial margin Total premiums Fee income NIM Interbank Efficiency ratio 8.2% 8.6% 8.7% 8.7% 50.5% 7.9% 7.9% 1,200 47.6% 47.6% 50.00
Slide 21: Significant growth in net income
Significant growth in net income Net income* - Intergroup Net income - Interbank Net income - Interseguro S/. million ROE S/. milllion ROE S/. million ROE 37.5% 6 00 37.0% 6 00 28.2% 26.9% 32.1% 30.4% 31.9% 28.5% 33.7% 31.3% 21.1% 18.3% 27.3% 41.2% 34.1% 33.1% 30.8% 507 1 0.0% 22.1% 31.6% 25.8% 5 00
Slide 22: Investment highlights
Investment highlights Peru is an economic and social success with outstanding macroeconomic Strong economic performance and financial The Peruvian financial system is strong, and has solid performance indicators system An industry with high growth potential Leading retail bank and annuities insuranc
Slide 23: Intergroup
Intergroup Financial Services