Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q4 2013 Earnings Presentation
20 slides from Intercorp Financial Services's earnings presentation, 2014
Slide 1: Fourth Quarter 2013 Earnings Presentation
Fourth Quarter 2013 Earnings Presentation
Slide 2: Intercorp Financial Services
Intercorp Financial Services 2
Slide 3: Highlights
Highlights Intercorp Financial Services: • In 2013, IFS earnings rose 2.8% due to higher gross financial margin and a decline in provisions, partially offset by an increase in administrative expenses and lower fee income. IFS ROE was 25.0% in 2013, below the 28.2% in 2012 • In 4Q13, net income incre
Slide 4: IFS net earnings increased 2.8% in 2013
IFS net earnings increased 2.8% in 2013 IFS Interbank Interseguro Net income* Net income Net income S/. million ROE S/. million ROE S/. million ROE 33.9% 800 28.2% 56.7% 25.0% 43.3% 700 31.7% 27.1% 26.6% 33.7% 725.5 600 698.5 705.7 124.0 104.1 169.3 647.1 500 570.4 63.1 540.9 13.4 400 47.8 300 574.4
Slide 5: IFS 4Q13 net earnings increased 41.3% QoQ and 43.4% YoY
IFS 4Q13 net earnings increased 41.3% QoQ and 43.4% YoY IFS Interbank Interseguro Net income* Net income Net income S/. million ROE S/. million ROE S/. million ROE 350 28.4% 25.9% 24.5% 300 69.5% 21.0% 21.3% 21.9% 250 207.6 17.5% 200 7.0% 61.0 144.7 146.9 156.9 157.1 150 125.8 100 72.5 146.6 50 21.5
Slide 6: IFS net earnings were S/. 207.6 million in 4Q13
IFS net earnings were S/. 207.6 million in 4Q13 Intercorp Financial Services' Statement of Comprehensive Income S/. million %chg %chg 4Q12 3Q13 4Q13 QoQ YoY Financial income 604.5 669.2 696.3 4.0% 15.2% Financial expenses -137.2 -151.9 -156.4 3.0% 14.0% Gross financial margin 467.3 517.3 539.9 4.4%
Slide 7: Interbank
(J Intercorp Financial Services
Slide 8: Interbank's net income was S/. 157.1 million in 4Q13
Interbank’s net income was S/. 157.1 million in 4Q13 Interbank's Statement of Comprehensive Income S/. million % chg % chg 4Q12 3Q13 4Q13 QoQ YoY Financial income 554.3 612.7 637.2 4.0% 15.0% Financial expenses -138.1 -151.7 -156.0 2.8% 12.9% Gross financial margin 416.1 460.9 481.3 4.4% 15.6% Provi
Slide 9: Loan growth remained strong at 6.3% QoQ and 26.9% YoY
Loan growth remained strong at 6.3% QoQ and 26.9% YoY Performing loans Breakdown of loans S/. million % chg % chg 4Q12 3Q13 4Q13 QoQ YoY S/. million Consumer loans: Credit cards 2,112 2,331 2,543 9.1% 20.4% Other consumer 2,823 3,034 3,120 2.8% 10.5% Total consumer loans 4,935 5,366 5,663 5.5% 14.7%
Slide 10: Interbank's deposits grew 6.5% QoQ and 38.5% YoY
Interbank’s deposits grew 6.5% QoQ and 38.5% YoY Funding Structure Deposit Breakdown S/. million % chg % chg 25,000 4Q12 3Q13 4Q13 QoQ YoY Deposits 14,636 19,026 20,266 6.5% 38.5% +38.5% 20,266 Due to banks 3,171 2,986 2,881 -3.5% -9.1% 20,000 19,026 1,021 Bonds 2,707 3,001 3,072 2.3% 13.5% 17,644 9
Slide 11: Gross financial margin increased 4.4% QoQ and 15.6% YoY
Gross financial margin increased 4.4% QoQ and 15.6% YoY Interbank's Gross Financial Margin S/. million % chg % chg 4Q12 3Q13 4Q13 QoQ YoY Financial income: Interest on loans 453.9 526.7 552.7 4.9% 21.8% Fees on loans 72.2 63.5 64.6 1.8% -10.5% Investment income 13.6 16.1 14.9 -7.2% 10.2% Interest on
Slide 12: NIM stabilizes QoQ and the gap above the industry's average widens
NIM stabilizes QoQ and the gap above the industry’s average widens Net Interest Margin (%) * 8.8% 8.8% 8.2% 7.7% 7.6% 7.2% 6.9% 7.0% 7.0% 6.4% 6.4% 6.3% 6.4% 6.3% 6.2% 6.2% 6.0% 5.9% 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Interbank Industry * Gross financial margin / Average interest-earning a
Slide 13: Provision expenses increased 5.9% QoQ while PDLs remained stable at 1.8%
Provision expenses increased 5.9% QoQ while PDLs remained stable at 1.8% PDL & Coverage Ratios Loan Provision Expense S/. million Provision expense* Loans 3.00% 220 3.1% 234.6% 3.20% 2.50% 226.2% 225.9% 228.1% 226.5% 235.00% 2.4% 170 2.1% 2.0% 2.0% 2.20% 2.00% 185.00% 116.7 1.20% 120 1.50% 94.6 94.7
Slide 14: Fee income and ROF failed to offset higher operating expenses
Fee income and results from financial operations (ROF) failed to offset higher operating expenses 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 50.6% 50.0% 27.8% 47.9% 26.0% 47.2% 23.5% 22.2% 3
Slide 15: Interbank's BIS ratio remained strong
Interbank’s BIS ratio remained strong Tier II Tier I 14.4% 13.7% 13.7% 13.3% 13.4% 11.5% 4.7% 3.2% 3.5% 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% 10.2% 9.7% 9.7% 8.1% 8.6% (1) 2008 2009 2010 2011 2012 3Q13 4Q13
Slide 16: Interseguro
Interseguro (J Intercorp Financial Services 16
Slide 17: Interseguro's net income improved in 4Q13 due to premiums growth and investment income
Interseguro’s net income improved in 4Q13 due to continued premiums growth and strong investment income Profit and Loss Statement Summary S/. million % chg % chg 4Q12 3Q13 4Q13 QoQ YoY Premiums 111.3 141.1 152.4 8.0% 36.9% Premiums ceded -1.3 -1.6 -1.5 -3.3% 17.7% Fees -4.0 -14.0 -10.8 -23.3% 166.2%
Slide 18: Premiums grew 8.0% QoQ and 36.9% YoY due mainly to higher sales in annuities
Premiums grew 8.0% QoQ and 36.9% YoY due mainly to higher sales in annuities Premiums by Business Line S/. million % chg % chg 4Q12 3Q13 4Q13 QoQ YoY Individual Life 6.0 8.2 7.4 -9.4% 24.0% Annuities 79.5 94.2 103.3 9.7% 29.9% Group Life 15.9 20.7 22.0 6.4% 38.0% Disability and survivor benefits 0.0
Slide 19: Investment income expanded strongly on extraordinary gains from real estate investments
Investment income expanded strongly on extraordinary gains from real estate investments Investment Portfolio S/. million % chg % chg 4Q12 3Q13 4Q13 QoQ YoY Fixed Income 2,224.3 2,511.6 2,672.4 6.4% 20.1% Equity and Mutual Funds 392.3 409.3 430.5 5.2% 9.7% Real estate 433.6 419.6 427.4 1.9% -1.4% Oth
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Intercorp Financial Services — Q4 2013 Earnings Presentation on 6ix