Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q3 2007 Earnings Presentation

21 slides from Intercorp Financial Services's earnings presentation, November 2007

  1. Slide 1: Third Quarter 2007 Earnings Presentation

    Third Quarter 2007 Earnings Presentation

  2. Slide 2: Highlights

    Highlights Intergroup ¾ Intergroup’s 3Q07 earnings per share were S/.0.92 (net income: S/.85mm), a 137% increase over 2Q06, due mainly to higher financial income and growth in other income ¾ ROE was 27.9%, an increase from 21.5% in 3Q06, despite higher average equity resulting from Intergroup’s plac

  3. Slide 3: Intergroup Financial Services

    INTERGROUP Intergroup FINANCIAL Financial SERVICES <IFS> Services 7

  4. Slide 4: Intergroup's revenues and net income grew significantly

    Intergroup’s revenues and net income grew significantly Total Revenues Net Income* S/. million S/. million 27.9% 27.9% ROE 273 100 28.0% 257 90 85 21.5% 23.0% 80 208 69 70 18.0% 60 50 13.0% 40 36 8.0% 30 20 3.0% 10 0 -2.0% 3Q06 2Q07 3Q07 3Q06 2Q07 3Q07 *Attributable to IFS’ shareholders Intergroup 4

  5. Slide 5: Net earnings grew 137% YoY and 22% QoQ

    Net earnings grew 137% YoY and 22% QoQ Intergroup's Profit and Loss Statement Summary S/. millones %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Financial income 222 292 293 1% 32% Financial expenses -51 -72 -77 6% 51% Gross financial margin 171 219 217 -1% 27% Provisions -35 -34 -36 7% 2% Net financial margin 1

  6. Slide 6: Both subsidiaries contributed to YoY growth

    Both subsidiaries contributed to YoY growth Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Interbank 35 44 82 85% 133% Interseguro 0 36 10 -71% nm Intergroup accounts: Return on investment portfolio and time deposit 0 5 Exchange loss, net -1 -9 IPO expens

  7. Slide 7: Interbank

    INTERGROUP FINANCIAL SERVICES <IFS> Interbank 7

  8. Slide 8: Revenue growth led to a 131% YoY increase in Interbank's net earnings

    Revenue growth led to a 131% YoY increase in Interbank’s net earnings Profit and Loss Statement Summary S/. million %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Financial income 196 234 261 12% 33% Financial expenses -48 -61 -70 14% 46% Gross financial margin 148 172 191 11% 29% Provisions -35 -34 -36 7% 2% Net

  9. Slide 9: Performing loans grew by 43% YoY

    Performing loans grew by 43% YoY, driven by strong performances in the retail and commercial portfolios Performing loans Breakdown of retail loans S/. million %chg %chg S/. million 3Q06 2Q07 3Q07 QoQ YoY Consumer loans: +43% 5,473 Credit cards 630 750 763 2% 21% Other consumer 823 1,083 1,186 10% 44

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

    Growth in deposits remains strong, but slower than in loans Funding Structure Deposit Breakdown S/. million %chg %chg 3Q06 2Q07 3Q07 +22% QoQ YoY 6,818 Deposits and obligations 5,591 6,343 6,818 7% 22% 6,343 684 5,987 Due to banks 489 826 987 19% 102% 5,763 716 5,591 362 Bonds and obligations 266 25

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

    NIM remains significantly above the industry average Net Interest Margin (%) 8.6% 8.4% 8.3% 8.2% 8.0% Interbank 7.0% 7.0% 6.9% 6.9% 6.9% Peruvian Banking System 3Q06 4Q06 1Q07 2Q07 3Q07 Source: ASBANC Intergroup 11 Management Presentation

  12. Slide 12: Asset quality and coverage improve significantly

    Asset quality and coverage improve significantly due to the sale of restructured loans Loan Provision Expense PDL & Coverage Ratios S/. million 5.50% 300% 3.4% 100 3.50% 268% 241% 90 235% 234% 3.00% 4.50% 250% 2.7% 2.7% 80 2.6% 208% % loans* 70 2.50% 3.50% 200% 60 2.00% 2.5% 1.1% 50 1.9% 2.50% 150%

  13. Slide 13: Net financial margin grew 37% YoY

    Net financial margin grew 37% YoY Interbank Net Financial Margin S/. million %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Financial Income: Loans 151 174 192 10% 27% Investments 22 29 27 -9% 22% Other 23 30 42 40% 83% Total Financial Income 196 234 261 12% 33% Financial Expenses: Deposits 35 45 51 13% 46% Other

  14. Slide 14: Fee income grew 32% YoY

    Fee income grew 32% YoY as a result of higher activities in credit cards, deposits, ATMs, and corporate finance Fee Income from Financial Services, Net S/. million %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Credit and debit card 21 24 24 1% 17% Fee for sevices 24 27 30 11% 22% Contingent operations 4 4 4 12%

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

    Branch network expanded, leading expenses to increase Distribution network Operating expenses Units S/. million 900 824 788 800 170 724 200 60.0% 701 ATMs 55.0% 54.4% 53.6% 700 180 Efficiency 55.0% 552 150 ratio* 137 160 600 142 50.0% 140 128 500 130 112 45.0% 120 115 400 112 114 Branches 100 40.0%

  16. Slide 16: Profitability continues to grow

    Profitability continues to grow Net Income S/. million 46.8% ROE* 110 45.0% 90 84.5 40.0% 35.0% 70 24.9% 27.7% 30.0% 45.4 25.0% 50 36.5 20.0% 30 15.0% 10.0% 10 5.0% -10 3Q06 2Q07 3Q07 0.0% *Annualized Intergroup 16 Management Presentation

  17. Slide 17: Interseguro

    INTERGROUP FINANCIAL SERVICES <IFS> Interseguro 7

  18. Slide 18: Growth in investment income led to a significant increase in Interseguro's net earnings

    Growth in investment income led to a significant increase in Interseguro’s net earnings Profit and Loss Statement Summary S/. million %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Premiums 73 57 59 4% -19% Fees (6) (6) (6) 5% 7% Claims (26) (29) (34) 19% 32% Change in reserves (60) (45) (33) -26% -44% Direct exp

  19. Slide 19: Premiums have fallen 18% YoY due to a contraction in the annuities market

    Premiums have fallen 18% YoY due to a contraction in the annuities market Premiums by Business Line S/. million %chg %chg Market 3Q06 2Q07 3Q07 QoQ YoY Share Individual life 5 4 5 13% 8% 5% Annuities 49 35 34 -3% -31% 24% Group life 5 5 5 0% 16% 6% Disability and survivor benefits 13 11 13 16% -2% 1

  20. Slide 20: Investment income grew by 36% YoY

    Investment income grew by 36% YoY due to higher volumes and yields Investment Income, Net S/. million %chg %chg 3Q06 2Q07 3Q07 QoQ YoY Income: Fixed income 23 24 36 51% 53% Equity and Mutual funds 1 35 -6 -116% -671% Real estate 1 4 3 -11% 151% Total income 25 62 33 -47% 30% Expenses -2 -3 -2 54% -3

  21. Slide 21: Intergroup Financial Services

    CJ Intergroup financial services

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