Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q4 2014 Earnings Presentation
33 slides from Intercorp Financial Services's earnings presentation, 2015
Slide 1: Intercorp Financial Services Fourth Quarter 2014 Earnings Presentation
Intercorp Financial Services Fourth Quarter 2014 Earnings Presentation
Slide 2: Highlights 4Q14 & FY14
Highlights 4Q14 & FY14 IFRS 4Q14 net profit was S/. 272.9 million, a 0.8% decrease QoQ and a 96.8% increase YoY. The quarterly decrease was driven Intercorp by earnings declines at Interseguro and Inteligo, while the YoY growth was mainly explained by strong performances at Interbank and Intersegu
Slide 3: IFS key indicators 4Q14
IFS key indicators 4Q14 IFRS Intercorp Financial Services' key indicators S/. million 4Q13 3Q14 4Q14 %chg QoQ %chg YoY Net interest and similar income 465.7 515.7 556.4 7.9% 19.5% Fee income from financial services, net 150.3 168.6 197.0 16.8% 31.1% Results Profit for the period 138.7 275.0 272.9 -0
Slide 4: IFS 4Q14 net profit almost doubled YoY
IFS 4Q14 net profit almost doubled YoY IFRS Interbank Inteligo Net profit in S/. million Net profit in S/. million ROAE 22.1% 25.2% 26.2% ROAE 15.2% 23.2% 13.2% +37.5% -6.9% 207.2 28.1 187.3 150.6 16.6 15.4 4Q13 3Q14 4Q14 4Q13 3Q14 4Q14 Interseguro IFS Net profit in S/. million Net profit in S/. mil
Slide 5: IFS key indicators FY14
IFS key indicators FY14 IFRS Intercorp Financial Services' key indicators S/. million %chg 2013 2014 14/13 Net interest and similar income 1,747.7 2,039.8 16.7% Fee income from financial services, net 622.0 704.1 13.2% Results Profit for the period 974.6 964.2 -1.1% Profit excl. non-recurring factor
Slide 6: Strong earnings growth at Interbank and Inteligo offset by Interseguro decline
Strong earnings growth at Interbank and Inteligo were offset by a decline at Interseguro related to the effect of changes in the discount rate of technical reserves IFRS Interbank Inteligo Net profit in S/. million Net profit in S/. million ROAE 25.1% 23.7% 24.8% ROAE 28.3% 26.5% 28.1% 729.5 615.0 5
Slide 7: Interbank
CJ Intercorp Financial Services
Slide 8: Interbank's net profit grew 10.6% QoQ and 37.5% YoY
Interbank’s net profit grew 10.6% QoQ and 37.5% YoY IFRS Banking Segment's P&L Statement S/. million %chg %chg 4Q13 3Q14 4Q14 QoQ YoY Interest and similar income 573.4 642.7 671.8 4.5% 17.2% Interest and similar expenses -162.3 -187.4 -187.5 0.1% 15.5% Net interest and similar income 411.1 455.3 484
Slide 9: Interbank's net profit IFRS vs. Local GAAP
Interbank’s net profit IFRS vs. Local GAAP Net profit – IFRS Net profit bridge from Local GAAP to IFRS (4Q14) S/. million S/. million +37.5% 5 13 7 187 207 151 80 84 4Q13 3Q14 4Q14 207 191 Net profit – Local GAAP S/. million +21.8% (1) Net profit Net interest Fee income Provision for Net gain on Oth
Slide 10: Performing loans grew 0.4% QoQ and 9.0% YoY
Performing loans grew 0.4% QoQ and 9.0% YoY Performing loans Breakdown of loans S/. million Breakdown of loans S/. million %chg %chg 4Q13 3Q14 4Q14 QoQ YoY +9.0% Consumer loans: Credit cards 2,542.7 3,040.9 3,183.4 4.7% 25.2% Other consumer 3,125.0 3,447.7 3,581.4 3.9% 14.6% Total consumer loans 5,6
Slide 11: Interbank's deposits grew 4.4% YoY driven by retail deposit growth
Interbank’s deposits grew 4.4% YoY driven by strong retail deposit growth of 14.5% Funding structure Deposit breakdown S/. million S/. million %chg %chg Loans _ 98.0% 106.4% 103.2% 4Q13 3Q14 4Q14 QoQ YoY Deposits Deposits 20,239.4 20,302.4 21,124.1 4.0% 4.4% Retail 7,860.6 8,427.5 9,001.1 6.8% 14.5%
Slide 12: Asset quality remains strong, in line with the system
Asset quality remains strong, in line with the system Local GAAP figures PDL vs. System Loan provision expense vs. System Interbank Sytem Interbank System Coverage 226.6% 201.4% 167.9% Ratio 2.4% 2.5% 2.1% 2.2% 1.9% 1.9% 1.8% 2.0% 2.5% 2.0% 1.6% 2.2% 4Q13 3Q14 4Q14 4Q13 3Q14 4Q14 PDL retail banking
Slide 13: Fee income increased 27.8% YoY and efficiency ratio improved
Fee income increased 27.8% YoY and efficiency ratio improved considerably Fee income Operating expenses S/. million S/. million 350 30.00% 50.7% 300 24.2% 500 .0 46.6% 50.0% 25.00% 22.3% 22.2% 450 .0 43.7% 250 400 .0 40.0% 20.00% 350 .0 200 300 .0 30.0% 15.00% 250 .0 150 200 .0 10.00% 20.0% 100 181.
Slide 14: Strong quarter at Interbank with increased ROE levels
Strong quarter at Interbank with increased ROE levels IFRS Net profit ROE S/. million Annualized +37.5% 207 25.2% 26.2% 187 22.1% 151 4Q13 3Q14 4Q14 4Q13 3Q14 4Q14 14
Slide 15: Interbank's BIS ratio remained well above regulatory requirements
Interbank’s BIS ratio remained well above regulatory requirements System 13.7% 14.5% 14.3% 14.6% 14.2% 20.00% 15.8% 15.8% 15.0% 15.2% 15.00% 13.4% 4.4% 5.8% 5.8% 5.6% +1.8% Additional Regulatory Capital +1.5% 3.7% Requirement 10.00% 10.0% Total Regulatory Minimum 5.00% 9.7% 10.6% 10.0% 10.0% 9.6% 0.
Slide 16: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 17: Interseguro's net profit, excluding discount rate impacts, increased QoQ and YoY
Interseguro’s net profit, excluding discount rate impacts on technical reserves, strongly increased QoQ and YoY Insurance Segment's P&L Statement S/. million %chg %chg 4Q13 3Q14 4Q14 QoQ YoY Interest and similar income 43.2 48.8 56.4 15.6% 30.6% Interest and similar expenses -0.4 -2.1 -2.4 14.9% n.m
Slide 18: Interseguro's net profit IFRS vs. Local GAAP
Interseguro’s net profit IFRS vs. Local GAAP Net profit – IFRS Net profit bridge from Local GAAP to IFRS (4Q14) S/. million S/. million 69 53 57 26 3 16 13 28 -42 12 -26 4Q13 3Q14 4Q14 34 Adjustment of technical reserves resulting from changes in discount rate Net profit – Local GAAP 13 53 S/. milli
Slide 19: Premiums decreased 1.7% QoQ but grew 9.6% YoY
Premiums decreased 1.7% QoQ but grew 9.6% YoY mainly supported by higher sales in annuities Net premiums Adjustment of technical reserves S/. million S/. million Annuities Discount rate 25.0% 25.2% 25.0% -42 57 26 market share impact 163 151 168 165 3 110 41 41 74 2 40 9 9 4 7 156 118 116 108 103 69
Slide 20: Interseguro's investment portfolio grew 22.0% YoY
Interseguro’s investment portfolio grew 22.0% YoY Investment portfolio Results from investments(1) S/. million S/. million +22.0% ROIP 8.2% 6.5% 8.8% 4,581 4,252 653 3,754 607 636 711 534 429 97 3,112 3,292 2,613 75 67 4Q13 3Q14 4Q14 4Q13 3Q14 4Q14 Fixed income Equity & Mutual funds Real estate Resu
Slide 21: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 22: Continued strong growth of client related revenues
Continued strong growth of client related revenues Wealth Management Segment's P&L Statement S/. million %chg %chg 4Q13 3Q14 4Q14 QoQ YoY Interest and similar income 23.8 24.5 29.3 19.2% 23.2% Interest and similar expenses -12.5 -11.1 -13.0 17.1% 4.1% Net interest and similar income 11.3 13.5 16.3 2
Slide 23: Inteligo's key indicators
Inteligo’s key indicators AUMs + Deposits Loans S/. million S/. million +15.8% +27.0% 10,830 10,724 1,430 9,261 1,310 2,194 2,302 1,126 2,001 7,260 8,636 8,422 4Q13 3Q14 4Q14 4Q13 3Q14 4Q14 Deposits AUM Revenues Net profit S/. million S/. million (1) Fee AUMs 1.1% 1.1% 1.3% ROAE 70.00 15.2% 23.2% 13
Slide 24: Summary
CJ Intercorp Financial Services
Slide 25: Sound 4Q14 & FY14 operating performance in all segments
Sound 4Q14 & FY14 operating performance in all 3 segments with high profitability Interbank 9.0% YoY growth in performing loans and 19.4% growth in consumer loans 14.5% YoY growth in retail deposits Interseguro 9.6% YoY growth in net premiums – leader in annuities for five consecutive year
Slide 26: Appendix
Appendix CJ Intercorp Financial Services
Slide 27: Highlights 4Q14
Highlights 4Q14 IFRS 4Q14 net profit was S/. 272.9 million, a 0.8% decrease QoQ and a 96.8% increase YoY. Intercorp The quarterly decrease was driven by earnings declines at Interseguro and Inteligo, while the YoY growth was Financial mainly explained by strong performances at Interbank and Inte
Slide 28: IFS 4Q14 P&L
IFS 4Q14 P&L IFRS Intercorp Financial Services' P&L statement S/. million %chg %chg 4Q13 3Q14 4Q14 QoQ YoY Interest and similar income 640.9 716.2 759.1 6.0% 18.4% Interest and similar expense -175.2 -200.4 -202.7 1.1% 15.7% Net interest and similar income 465.7 515.7 556.4 7.9% 19.5% Provision for
Slide 29: Highlights FY14
Highlights FY14 IFRS Net profit was S/. 964.2 million in 2014, a 1.1% decrease YoY Intercorp The YoY decrease was explained by a S/. 220.3 million increase in the adjustment of technical reserves Financial which negatively impacted Interseguro’s net profit. Excluding such effect, IFS’ net profit
Slide 30: IFS FY14 P&L
IFS FY14 P&L IFRS Intercorp Financial Services' P&L Statement S/. million %chg %chg 2012 2013 2014 14/13 13/12 Interest and similar income 2,128.8 2,405.5 2,828.7 17.6% 13.0% Interest and similar expenses -566.8 -657.8 -788.9 19.9% 16.1% Net interest and similar income 1,562.0 1,747.7 2,039.8 16.7%
Slide 31: Interbank's FY14 net profit bridge to IFRS
Interbank’s FY14 net profit bridge to IFRS Local GAAP vs. IFRS S/. million $8 00.0 12 38 $7 00.0 $6 00.0 293 287 Cross currency swap Release of $5 00.0 loss change from generic unrealized earnings provisions, lower (Local GAAP) to loss depreciation and $4 00.0 (IFRS) lower taxes 709 729 $3 00.0 Main
Slide 32: Interseguro's FY14 net profit bridge to IFRS
Interseguro’s FY14 net profit bridge to IFRS Local GAAP vs. IFRS S/. million Use of different discount rates to calculate technical reserves 66 Includes gains on 131 valuation of Intercorp’s 16 real estate investment Real estate gains on valuation are recognized under IFRS but not under 14 Local GAA
Slide 33: Fl _—_._ Financial Services
Fl _—_._ Financial Services
Intercorp Financial Services — Q4 2014 Earnings Presentation on 6ix