24 slides from Intercorp Financial Services's investor presentation, October 2020
Slide 1: Investor Update October 2020
Investor Update October 2020
Slide 2: Agenda
Agenda Key Financial Takeaways messages highlights 1
Slide 3: Agenda
Agenda Key Financial Takeaways messages highlights 2
Slide 4: Key messages
Key messages 1 2 3 4 5 Strong liquidity and Activity recovering from Digital trends High provisions Double-digit reduction capital position COVID-19 lows continue to support following a precautionary in expenses due to cost IFS’ strategy approach in the containment measures expected loss model 3
Slide 5: Strong liquidity levels in 2Q20 with market share gains in deposits at Interbank
Strong liquidity levels in 2Q20 with market share 1 gains in deposits at Interbank Interbank - Loan to deposit ratio (LDR) Interbank - Total deposits % as of August 31, 2020 S/ million Total LDR Market 12.9% 12.5% 13.2% Share 109% 99% 100% 100% System: 100% +25.5% 40,846 32,548 34,502 BBVA Interbank
Slide 6: Solid capital ratios at all IFS' segments
1 Solid capital ratios at all IFS’ segments 143.8% 138.5% 144.5% 144.8% Banking System 14.8% 14.3% 14.8% 15.2% 100.0% regulatory TCR minimum 16.7%(1) 16.6% 12.0% 16.1% 16.1% Jun19 Mar20 Jun20 Aug20 11.1% 11.1% 10.6% Solvency ratio 10.6% regulatory minimum 24.4% 23.3% 22.5% 21.1% Jun19 Mar20 Jun20 Au
Slide 7: Economic activity in Peru recovering from low levels due to lockdown
Economic activity in Peru recovering from low 2 levels due to lockdown GDP growth Mining and fuel GDP Electricity subsector (YoY % Chg) (YoY % Chg) index (YoY % Chg) 3.8% 4.0% 6.0% 2.4% 11.0% -6.2% -2.8% -14.4% -11.2% -6.1% -21.8% -12.6% -12.4% 3.1% 3.9% T -25.1% -42.3% -45.8% -29.5% B U Jan Feb Mar
Slide 8: Monthly operating trends indicate positive developments in activity for 3Q20
Monthly operating trends indicate positive 2 developments in activity for 3Q20 Credit and debit cards turnover Payroll deduction loans disbursements Gross premiums plus collections (Index; 100 = Feb20) (Index; 100 = Feb20) (Index; 100 = Feb20) 100 100 100 83 77 78 76 64 50 52 38 8 Feb20 Apr20 Jun20
Slide 9: We have helped our customers through the Reactiva Peru Program
We have helped our customers through the 2 Reactiva Peru Program Commercial loans Corporate loans S/ million, Local GAAP S/ million, Local GAAP +39.9% +16.3% 20,545 22,390 9,945 16,000 6,060 3,8338,549 758 16,000 9,187 16,330 Mar20 Aug20 Mar20 Aug20 Mid-sized loans SME loans S/ million, Local GAAP S
Slide 10: Digital KPIs continue to show positive trends
3 Digital KPIs continue to show positive trends Interbank - Digital users Interbank - 100% digital customers Interbank - Business accounts % of digital users 100% digital customers N° and % of business accounts opened digitally (thousand) 44% 70% 81% 74% 52% 69% 42% 5 60% 31% 3 1 Jun19 Mar20 Jun20 J
Slide 11: 3.7 mm retail customers and 1 mm 100% digital customers with improving NPS at Interbank
3.7 mm retail customers and 1 mm 100% digital 3 customers with improving NPS at Interbank Retail customers Net promoter score (NPS) Thousand Score +15.1% +8p 3,590 3,724 39 36 3,236 31 Jun19 Mar20 Jun20 Jun19 Mar20 Jun20 100% digital customers NPS 100% digital customers Thousand Score +87.1% +12p 1,
Slide 12: We have rescheduled ~30% of our loan portfolio at Interbank
We have rescheduled ~30% of our loan portfolio 4 at Interbank Interbank - Performing loans Interbank – Loan rescheduling S/ billion S/ billion 40.7 Clients 343 459 31% (Thousand) at System Most 4.4% Level(1) (1.8) Small businesses Rescheduled exposed 7.8% balance (%) 29% 29% (3.2) Self-employed work
Slide 13: High provisions following a precautionary approach in the expected loss model
High provisions following a precautionary 4 approach in the expected loss model Interbank - Cost of risk Interbank - Non-performing exposure NPL 127.9% 182.7% coverage ratio After adjustments to the expected 13.4% 8.5% 13.4% loss model: (S2+S3) ratio: 23.3% 9.6% 9.7% NPL ratio: 6.2% 3.4% 2.5%(1) 3.4
Slide 14: Double-digit reduction in expenses due to cost containment measures
Double-digit reduction in expenses due to cost 5 containment measures Interbank - Other expenses bridge from 2Q19 to 2Q20 IFS & subsidiaries - Other expenses YoY growth by line 2Q20 YoY growth Efficiency ratio(1) +1.0% -22.2% -43.1% -7.0% -15.0% 1Q20 2Q20 +1 IFS -14% 36.4% 29.9% -36 -15 -9 Interbank
Slide 15: Agenda
Agenda Key Financial Takeaways messages highlights 14
Slide 16: Highlights
Highlights 2Q20 earnings affected by higher provisions from COVID-19 and low activity during lockdown • Loans outgrowing the system, market share up to 12.6% boosted by our participation in Reactiva Peru Program Banking • Strong growth in deposits drove market share up to 13.2%, cost of funds down 5
Slide 17: 2Q20 earnings affected by higher provisions, partially offset by positive results from investments
2Q20 earnings affected by higher provisions, partially offset by positive results from investments Intercorp Financial Services Banking Net profit in S/ million Net profit in S/ million ROAE 18.5% 6.6% n.m. ROAE 21.7% 13.8% n.m. 350 Negative 300 Negative Impact of Impact of provisions: 221 provision
Slide 18: IFS key indicators 2Q20
IFS key indicators 2Q20 S/ million 2Q19 1Q20 2Q20 %chg QoQ %chg YoY (1) Total revenues 1,304.9 1,292.8 1,315.2 1.7% 0.8% (1) Net interest and similar income 856.4 908.7 870.5 -4.2% 1.6% (1) Efficiency ratio 35.0% 36.4% 29.9% -650 bps -510 bps Profit for the period 350.1 144.9 -457.3 n.m. n.m. IFS (1
Slide 19: 1H20 earnings affected by higher provisions
1H20 earnings affected by higher provisions Intercorp Financial Services Banking Net profit in S/ million Net profit in S/ million ROAE 18.9% n.m. ROAE 20.7%(2) n.m. 703 600 32 Negative Negative Impact of Impact of provisions: provisions: S/ -1.6bn 567(2) S/ -1.6bn -216(1) -250(1) -96 -96 -312 -346
Slide 20: IFS key indicators 1H20
IFS key indicators 1H20 S/ million 1H19 1H20 %chg YoY Total revenues (1) 2,588.9 2,608.0 0.7% (1) Net interest and similar income 1,680.6 1,779.2 5.9% (1) Efficiency ratio 34.4% 33.1% -130 bps Profit for the period 702.8 -312.4 n.m. IFS (1) Adjusted profit for the period 702.8 -216.1 n.m. ROAE 18.9%
Slide 21: Agenda
Agenda Key Financial Takeaways messages highlights 20
Slide 22: We foresee positive trends in 2H20 vs. 1H20
We foresee positive trends in 2H20 vs. 1H20 Overall activity Capital and liquidity should continue to recover to remain at sound NIM will continue to be levels and well above Reactiva 2 loans impacted despite regulatory requirements to continue to lower cost of funds boost commercial loans Strict co
Slide 23: Summary
Summary 1 2 3 4 5 Strong liquidity and Activity recovering from Digital trends High provisions Double-digit reduction capital position COVID-19 lows continue to support following a precautionary in expenses due to cost IFS’ strategy approach in the containment measures expected loss model 22
Slide 24: Slide 24