Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q3 2018 Earnings Presentation

33 slides from Intercorp Financial Services's earnings presentation, 2018

  1. Slide 1: Earnings Presentation Third Quarter 2018

    Earnings Presentation Third Quarter 2018 EJ Intercorp Financial Services

  2. Slide 2: Highlights 3Q18

    Highlights 3Q18 ¢ Strong quarter with market share gains in all loan products and retail deposits * Costofriskat 2.2% in the quarter, down 20 bps QoQ ona normalized basis and 80 bps YoY * Earnings grew 8.6% YoY and 3.8% QoQ excluding the impact of the reversion of construction sector i provisions an

  3. Slide 3: IFS 3Q18 net profit increased 19.5% YoY

    IFS 3Q18 net profit increased 19.5% YoY IFRSO IFS Interbank Net profit in $/ million Net profit in $/ million +3.5%Q0Q growth excl. new mortality tables and reversionof provisions / +3.8% QoQ growth excl reversion of provisions and dividend income) _/ 419.5% +8.6% 228 a 3017 oars 3018 3017 2arg 3a1s

  4. Slide 4: IFS key indicators 3Q18

    IFS key indicators 3Q18 IFRSO S/ million 3Q17 2Q18 3Q18_%chgQoQ_%chg YoY Total revenues 1,085.1 1,223.7 1,238.8 1.2% 14.2% Net interest and similar income 668.3 784.2 780.5 -0.5% 16.8% Efficiency ratio 36.4% 34.4% 35.0% 60bps -140bps IFS Profit for the period 264.5 204.9 316.1 54.3% 19.5% Normalized

  5. Slide 5: Relevant net income

    Relevant net income Local GAAP & IFRS Interbank — Local GAAP Interseguro — Local GAAP Inteligo — IFRS®) Net profitin $/ million Net profitin $/ million Net profitin $/ million x“ a> > > D> D> ae aj ap Ec +9.5% +207.9% +30.8% 2.85, 225% ad 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 (1) Relevantnet

  6. Slide 6: Interbank

    EJ Intercorp Financial Services

  7. Slide 7: Further improvement in risk-adjusted NIM and cost of risk

    10} (2) 3) 4) ©) © io) Further improvement in risk-adjusted NIM and cost of risk IFRSO Net interest and similar income Loan provision expense S/ million S/ million Risk- ones ED => C23 NIM +8.6% | -18.0% +0.1% 176 5.7% —> 5 202 2 619 620 i 63 i 166 S71 13 3Q17 2Q18 3Q18 3Q17 2Qi8 3Q18 {2 Constructio

  8. Slide 8: Clear focus on digital transformation

    iO} (2) @ (4) Clear focus on digital transformation 49% Digital a0% customers 3017 3a18 95% Off-branch som transactions® 3017 3a18 95% Oy Ddicital me functionalities 3017 3a18 Digital sales & 22% self-service mn 3017 3a18 Digital customers: % of retail clients that use digital platforms Off-branch t

  9. Slide 9: Loan growth accelerated to 15.3% YoY, supported by 21.2% growth in credit cards

    Loan growth accelerated to 15.3% YoY, supported by a 21.2% YoY growth in credit cards Performing loans Breakdown of loans S/ million +15.3% (414.9%) 29,066 26,134 3Q17 2Q18 3Q18 =Retail =™Commercial % chgexcluding exchange rate effect (1)Basedon Local GAAP figures S/million %ohg %chg 3Q17 2a18 3Q18

  10. Slide 10: Retail deposits increased 3.5% QoQ and 12.6% YoY

    iO) @ @) Retail deposits increased 3.5% QoQ and 12.6% YoY; market share improved 30 bps QoQ Funding structure Funding breakdown S/ million S]million vochg vochg 3Q17 2Q18 3Q18 QoQ YoY Gross Loans <=> <=> <=> De it Deposits 25,819.1 28,9928 ——-29,079.1 0.3% 12.6% posits Retail 1,935.7 12,992.6 13,442

  11. Slide 11: Asset quality continued to improve in 3Q18

    Asset quality continued to improve in 3Q18 IFRS Cost of risk (IFRS vs. Local GAAP) Non-performing exposure 1.5% including impact of 3.1% 2.4%2) 3.0% 2.4% 2.2% 3Q17 2Q18 3Q18 IFRS = —#—Local GAAP Cost of risk — Retail and commercial banking NPL Coverage ration DD @ @ 13.3% 12.1% 11.8% 3.3% 3.1% 2.8%

  12. Slide 12: PDL ratio improved in 3Q18, driven by reductions in credit cards and mortgages

    PDL ratio improved 10 bps in 3Q18, driven by 20 bps reductions in credit cards and mortgages Local GAAP PDL vs. System Loan provision expense vs. System = Interbank —i=System =" Interbank =te=System Interbank Coversxe ED > &> Ratio 3.1% 3.1% 3.1% = = =| 3Q17 2Q18 3a18 3Q17 2Q18 3a18 PDL retail banki

  13. Slide 13: Dollarization levels increased in corporate loans

    Dollarization levels increased in corporate loans driven by trade-related activity Total loans Retail loans Commercial loans %PENSysten GED t 67.8%) 25.9% 46.6% 51.2% 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 Retail loans breakdown Commercial loans breakdown Consumer Credit Cards Mortgages Corporate Medium Smal

  14. Slide 14: Solid core capital levels for Interbank

    Solid core capital levels for Interbank BIS ratio evolution system D> ED 3Q17 17.5% 16.7% 4Qi7 mmm Tier | 1Q18 mmm Tier Il 2Q18 —®—CET! 3Q18 +1.7% Additional Regulatory Capital Requirement 10.0% Total Regulatory Minimum SBS has adopted Basel II since 2008 SBS introduced a first set of Basel III stan

  15. Slide 15: Interseguro

    Iinterseguro

  16. Slide 16: 5.2% QoQ growth in gross premiums plus collections

    5.2% QoQ growth in gross premiums plus collections IFRS Gross premiums plus collections by business unit S/ million +46.8% | 250 238 Sy * — Annuities increased18.3% QoQ and 23.8% YoY as a result of a higher market share in amore dynamic market 170 * — Retail Insurance remained stable QoQ and slightl

  17. Slide 17: Net premiums increased 8.3% QoQ and 35.9% YoY

    Net premiums increased 8.3% QoQ and 35.9% YoY Net premiums Adjustment of technical reserves S/ million S| million Annuities market share &> B0s%) &> 164 174 161 128 4 30 31 49 51 al 145 7 65 66 78 60 19 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 ™Annuities ™RetailInsurance = IndividualLife © D&S ™Recurring =" No

  18. Slide 18: Interseguro's fixed income portfolio increased QoQ

    Interseguro’s fixed income portfolio increased QoQ Investment portfolio Results from investments S/million S/million roe > & & pact of IFRS 9: +88.1% 8: S/-19MM 11,005 +2.9% — 149 3Q17 2Q18 3Q18 mFixed income = Equity & Mutual funds Realestate ™Fixed Income =Equity &Mutual funds ™Realestate ™ Other

  19. Slide 19: Inteligo

    go intel Dy 2A bee] mh) W Y > Cc a WY) Bie) O c O — i a —_ fe) w) ~~ pe) td &

  20. Slide 20: Good results attributable to a better performance of the proprietary portfolio

    Good results attributable to a better performance of the proprietary portfolio IFRS® Net interest and similar income Fees from financial services S/ million S/ million i 25%] t 3.0%) = 415.0% | 45% | 1.0% Se 2: is 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 Other income Other expenses S/ million S/ million 454.7%

  21. Slide 21: Strong profitability in 3Q18 with 33.1% ROAE

    Strong profitability in 3Q18 with 33.1% ROAE IFRS® AUM + Deposits Loans S/ million S/ million +3.3% } -19.3% 14584 44.9% 15,295 — BE 16n1 13,142 1,300 3Q17 2a18 3a18 3Q17 2a18 3a18 @ Deposits m@ AUM Revenues Net profit S/ million S/ million (2) Fee’ fe” > f 0% t 0.5%) oe 255%) & ep +15.8% +30.8% Y 7

  22. Slide 22: Summary

    Summary

  23. Slide 23: Takeaways

    Takeaways ¢ Strong quarter with market share gains in all loan products and retail deposits * Costofriskat 2.2% in the quarter, down 20 bps QoQ ona normalized basis and 80 bps YoY * Earnings grew 8.6% YoY and 3.8% QoQ excluding the impact of the reversion of construction sector i provisions and seas

  24. Slide 24: Appendix

    Appendix EJ Intercorp Financial Services |

  25. Slide 25: IFS 3Q18 Statement of financial position

    IFS 3Q18 Statement of financial position IFRS® Intercorp Financial Services' Statement of financial position S/ million %chg 30.09.2017 30.06.2018 30.09.2018 30.09.18/ (IAS 39) (IFRS 9) (IFRS 9) 30.06.18 Assets Cash and due from banks and inter-bank funds 8,900.3 7,941.3 7,206.3 -9.3% Total investme

  26. Slide 26: IFS 3Q18 P&L

    IFS 3Q18 P&L IFRS® Intercorp Financial Services' P&L statement S/ million %chg %chg 3Q17 2Q18 3Q18 QoQ YoY Interest and similar income 9478 1,070.2 1,086.2 1.5% 14.6% Interest and similar expense -279.4 -286.0 -305,7 6.9% 9.4% Net interest and similar income 668.3 784.2 780.5 -0.5% 16.8% Provision f

  27. Slide 27: Interbank 3Q18 P&L

    0) @ @) interbank 3Q18 P&L Banking Segment's P&L Statement S/ million %chg %chg 3Q17 2Q18 3Q18 QoQ YoY Interest and similar income 835.3 880.3 898.8 21% 78% Interest and similar expenses -2643 -260.9 -278.8 6.8% 5.5% Net interest and similar income 571.0 619.4 620.0 0.1% 8.6% Provision for loan loss

  28. Slide 28: 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 (3Q18) S/ million S/ million +8.6% | a Retail: S/ 71MM Commercial Higher deferred come tax 3Q17 2Q18 3Q18 income to fee income Net profit — Local GAAP S/ million 49.5% | -2.8% 2.8% 222 243 Netprofi

  29. Slide 29: Interseguro 3Q18 P&L

    Interseguro 3Q18 P&L IFRS® Interseguro's P&L Statement S/ million %chg %chg 3Q17 2Q18 3Q18 QoQ YoY Interest and similar income 772 187.5 1473 6.5% 90.8% Interest and similar expenses -2.7 12.9 -14.2 9.9% nm. Net Interest and similar income 74.5 144.6 133.1 -7.9% 78.6% Fee income from financial servi

  30. Slide 30: 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 (3Q18) S/ million S/ million 4734.0% J ___31 36.0% 20 2 > Different acquisition | 3Q17 2Q18 3Q18 21 (3 Non-recurringitems —+ Excludingnon-recurringitems Net profit — Local GAAP S/ million Netprof

  31. Slide 31: Interseguro's total equity increased 20.5% QoQ and 52.6% YTD

    Interseguro’s total equity increased 20.5% QoQ and 52.6% YTD IFRS® Total equity S/ million +52.6% | gh el 861 * — Total equity increased 20.5% QoQ mainly due to S/ 131.0 million higher 4Q7 lars 2a18 3ars unrealized gains from investments Total equity variation analysis i + Totalequitygrew 52.6% YTD,

  32. Slide 32: Inteligo 3Q18 P&L

    Inteligo 3Q18 P&L IFRS Wealth Management Segment's P&L Statement S/ million %chg %chg 3Q17 2Q18 3Q18 QoQ YoY Interest and similar income 36.0 39.5 37.7 -4.6% 47% Interest and similar expenses -13.3 -10.8 11.6 71% -13.0% Net interest and similar income 22.7 28.7 26.1 -9.0% 15.0% Provision for loan lo

  33. Slide 33: Intercorp Financial Services

    (J Intercorp Financial Services

Intercorp Financial Services — Q3 2018 Earnings Presentation on 6ix