Slide 1: Management Presentation
Management Presentation May 2023
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This corporate presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this corporate presentation regarding Interbank’
Slide 3: Interbank in numbers
Interbank in numbers 314 Earnings 22% MS consumer 9% MS commercial 18% (S/ mn) loans loans ROE 40% C/I 5.5 Customers 71% Digital ratio (mn) customers As of March 31, 2023 2
Slide 4: Interbank at a glance
Interbank at a glance 3
Slide 5: Leading bank in Peru with strong financial performance
Leading bank in Peru with strong financial performance Financial highlights Leading position in the Peruvian banking system(2) As of March 31, 2023 S/ mn | US$ mn Assets (1) 67,269 | 17,881 Gross loans (1) 45,647 | 12,134 #2 #2 #1 22.3% 22.3% Deposits (1) 18.0% Market share in Market share in 46,268
Slide 6: Solid capital ratios
Solid capital ratios Key initiatives Capital ratio evolution Solvency ▪ Fully capitalized 2019 earnings to strengthen Banking CET1 and TCR System 15.4% 14.9% 14.4% 15.6% TCR ▪ Called US$ 200 million hybrid Tier 1 bond in April 2020 to reduce interest expense on 17.0% 12.5% 15.9% 12.0% bonds that no
Slide 7: Milestones in Interbank’s capital markets history
Milestones in Interbank’s capital markets history Interbank issues $300 million in subordinated Tier 2 bonds in the international capital markets Interbank issues $200 Interbank issues $200 million in senior bonds million in hybrid Tier 1 in the international bonds in the capital markets, IFS execut
Slide 8: Intercorp Group: striving to make Peru the best place to raise a family in Latin America
Intercorp Group: striving to make Peru the best place to raise a family in Latin America Financial services Retail US$ 8.4bn Revenues in 2022 ~4.0% of Peru 2022 GDP Education Other (1) Source: Company information and Central Bank 7 1) Related companies excluding Aviva and Urbi
Slide 9: Key messages
Key messages 8
Slide 10: Key messages
Key messages 1 Challenging macro environment 2 Resilient profitability 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 11: Challenging macro environment
1 Challenging macro environment 12 month GDP growth YoY (%) Interest rates (%) Soles reference rate (BCRP) May23 2023E Dollar reference rate (FED) 7.75 7.75% 13.6 13.3 7.50 2.5 5.50 6.5 5.6 4.95 4.00 2.7 1.9 May23 2.50 5.25% 4.50 4.75 Jan21 Jun21 Dec21 Mar22 Jun22 Dec22 Feb23 0.25 1.75 0.25 0.25 0.2
Slide 12: Key messages
Key messages 1 Challenging macro environment 2 Resilient profitability 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 13: Slowdown in activity with more focus on low risk segments
Slowdown in activity with more 2 focus on low risk segments 7.0 6.9 9.7 10.3 5.5 8.1 -1% QoQ +6% QoQ +25% YoY +27% YoY 1Q22 4Q22 1Q23 1Q22 4Q23 1Q23 Credit & debit cards purchases (S/ bn) Credit cards & personal loans balances (S/ bn) 1,077 1,048 296 884 263 -3% QoQ 233 -21% QoQ +19% YoY -11% YoY 1Q
Slide 14: Double digit growth across all revenue lines
Double digit growth across all 2 revenue lines % YoY +19% +14% +14% +18% +20 +12 +142 1,163 989 1Q22 Gross financial Net fee income Gain on financial 1Q23 margin transactions Banking – Revenue bridge from 1Q22 to 1Q23 (S/ mn) 13
Slide 15: Shift in loan mix and repricing expand yields further
Shift in loan mix and repricing expand 2 yields further Reactiva Commercial Mortgages Payroll deduction loans Yield on loans NIM Credit cards & personal loans 10% 4% 10.4% 10.1% 9.5% 41% 8.9% 38% 8.1% 5.2% 5.2% 21% 21% 4.7% 4.8% 4.4% 11% 52% 11% 55% Retail Retail 20% 23% 1Q22 1Q23 1Q22 2Q22 3Q22 4Q2
Slide 16: Rising funding costs, one of the best LDR among peers
Rising funding costs, one of the 2 best LDR among peers 1Q22 4Q22 1Q23 Cost of funds Cost of deposits Interbank 99% 101% 99% 3.5% 3.1% 2.7% Bank 1 99% 102% 97% 3.1% 2.1% 2.6% 1.6% 2.2% Bank 2 117% 109% 107% 1.5% Ref. rate YoY (2) 1.1% +375 bps (S/) +450 bps (US$) Bank 3 128% 134% 124% System 106% Sy
Slide 17: Key messages
Key messages 1 Challenging macro environment 2 Resilient profitability 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 18: Solid risk management capabilities
Solid risk management capabilities 3 Better asset quality than the system despite focus on Best total PDL ratio among peers (%) retail – PDL ratio evolution (%) Interbank System Commercial loans Retail loans Total loans 3.8% 3.8% 3.9% 3.8% 4.0% BBVA BBVA 5.4% 2.4% BBVA 4.4% Scotiabank Scotiabank 5.1
Slide 19: Manageable dollarization levels
Manageable dollarization levels 3 Gross Loans by segment & percentage in S/ Currency mix Mar23 93% 94% 94% 94% 95% 95% 89% 92% 92% Gross Loans Total Assets 85% 78% 76% USD 73% 74% 73% 74% 74% 75% USD 71% 25% 31% 63% 64% 58% 52% 52% 52% 51% 50% 50% 49% 41% S/ S/ 75% 69% 2014 2015 2016 2017 2018 2019
Slide 20: Key messages
Key messages 1 Challenging macro environment 2 Resilient profitability 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 21: Positive development in digital indicators…
Positive development in digital indicators… 4 71% 59% 60% 65% Mar22 Mar23 Mar22 Mar23 Digital customers Digital sales (% of digital customers) (% of products sold digitally) 96% 47 89% 45 Mar22 Mar23 Mar22 Mar23 Business accounts NPS – Digital customers (% of business accounts opened digitally) (poi
Slide 22: Over 11.1 million users in Plin and 2.6 million in Tunki
Over 11.1 million users in Plin and 2.6 million in Tunki 4 +64% YoY +59% YoY +2x YoY Apr23 Apr23 Apr23 11.1 942 21.2 10.7 917 19.8 6.6 578 8.5 Mar22 Mar23 Mar22 Mar23 Mar22 Mar23 Users (mn) Merchants (th) Transactions (units in mn) +46% YoY +56% YoY +3x YoY Apr23 Apr23 Apr23 2.6 581 5.4 2.6 575 5.1
Slide 23: Retail customers reached 5.5 million
Retail customers reached 5.5 million 4 +17% YoY +29% YoY +23% YoY 5.3 5.5 2.2 2.2 162 4.7 1.7 152 132 1Q22 4Q22 1Q23 1Q22 4Q22 1Q23 1Q22 4Q22 1Q23 Banking – retail customers (mn) Banking – digital customers (mn) Banking – commercial customers (th) 22
Slide 24: Key messages
Key messages 1 Challenging macro environment 2 Resilient profitability 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 25: Continuous focus on efficiency
Continuous focus on efficiency 5 Variable expenses drive costs higher – Total expenses(2) Optimizing our distribution channels (Units) (S/ mn) 2020 Mar23 % Change Financial stores 215 159 -26% 1,847 1,696 1,491 ATMs 1,640 1,549 -6% Correspondent 466 5,529 5,609 +1% 435 agents(1) Sales force 899 1,14
Slide 26: Key messages
Key messages 1 Challenging macro environment 2 Resilient profitability 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 27: ESG updates
ESG updates update 6 Environmental Social Governance & Economic +35K clients MINAM recognition #1 Interbank • Interbank +150K savings accounts +65K credit loans +6K housing access Interbank's social- environmental risk criteria aligned with: • Interbank #9 Interbank #4 Interbank #5 Interbank Sustain
Slide 28: Increasingly involved in green & sustainable financing
Increasingly involved in green & sustainable financing 6 160(US$ mn) 60 (US$ mn) 20(US$ mn) 100 (S/ mn) Sustainability-linked Green Sustainability-linked Sustainability-linked loan loan Loan loan (Lead arranger) (Arranger) (Arranger) (Arranger) We help our customers grow their businesses in a sustai
Slide 29: Our way of working will enable us to achieve our goals
Our way of working will enable us to achieve our goals 6 Great Place to Work Our strategic values Top 20 in Peru for the past 21 years #3 in Latin America in 2022 Integrity Courage #4 in Peru in 2023 #5 for women in Peru in 2023 Innovation Collaboration #2 for millennials in Peru in 2022 #1 for work
Slide 30: Strong corporate governance
Strong corporate governance 6 Board of directors BOD with majority of independent members Carlos Rodríguez-Pastor Fernando Zavala Chairman Director Interbank: 6 out of 10 Ramón Barúa Felipe Morris Director Director Strong corporate governance Marcia Nogueira De Mello Cayetana Aljovín Independent Dir
Slide 31: Appendix
Appendix 30
Slide 32: Strategic focus on consumer loans
Strategic focus on consumer loans Distinctive loan breakdown… …when compared to the banking system Banking System Commercial Commercial 45% 63% Mortgages Consumer Mortgages Consumer 37% loans Retail 46% loans Retail 63% 37% 54% 55% S/ 45.6BN S/ 25.3BN S/ 353.3BN S/ 132.0BN Leading position in consum
Slide 33: Market share gain in consumer loans
Market share gain in consumer loans Performing loans (S/ mn) Breakdown of loans (S/ mn) %chg %chg +1% QoQ | +8% YoY 1Q22 4Q22 1Q23 QoQ YoY Consumer loans Credit cards & other loans 8,169.8 9,699.3 10,364.5 6.9% 26.9% (1) Payroll deduction loans 4,545.3 4,629.1 4,836.2 4.5% 6.4% 43,919 Total consumer
Slide 34: Diversified funding base with strength in retail deposits
Diversified funding base with strength in retail deposits Significant deposits base A growing retail deposit-gathering franchise MS 2017: 12.6% MS Mar23: 14.9% Other MS 2022: 14.9% 5% Bonds 8% Demand Savings 13.3% 21% 42% 9.6% Due to banks Deposits 13% 79% 6.1% 5.6% Time 32% CAGR 2017-22 1Q23 YoY In
Slide 35: High and stable market share in retail deposits
High and stable market share in retail deposits Funding breakdown (S/ mn) Funding structure (S/ mn) %chg %chg LDR(2) 99% 101% 99% 1Q22 4Q22 1Q23 QoQ YoY Deposits 42,905.2 44,630.8 46,268.4 3.7% 7.8% System’s 106% 107% 104% Retail 22,190.3 23,670.0 23,548.3 -0.5% 6.1% LDR(2) Commercial(1) 20,714.9 20
Slide 36: Reactiva loan balances down 60% YoY, representing 4% of total portfolio
Reactiva loan balances down 60% YoY, representing 4% of total portfolio Reactiva Peru loan balances by segment (S/ bn) 1Q23 Segment YoY Corporate -85% 4.2 Mid-sized -62% Corporate: S/ 0.4 bn Mid-sized: S/ 0.8 bn 2.3 SME: S/ 0.5 bn SME -50% 1.7 Total -60% 1Q22 4Q22 1Q23 35 SME Mid-sized Corporate
Slide 37: Manageable dollarization levels
Manageable dollarization levels Total loans Retail loans Commercial loans % PEN 67% 72% 88% 93% 56% 60% System 8% 5% 26% 25% 46% 50% 92% 95% 75% 75% 54% 50% 1Q18 1Q23 1Q18 1Q23 1Q18 1Q23 Retail loans breakdown Commercial loans breakdown Consumer Mortgages Corporate Medium Small & Micro 96% 97% 81% 9
Slide 38: Overview of Peruvian banking system
Overview of Peruvian banking system Steady loan growth – Banking system gross loans (S/ bn) Profitability recovering – Banking system net profit (S/ mn) ROE 4.0% 13.3% 17.3% 17.8% 17.7% CAGR +4.6% CAGR 350 357 349 353 2020-22 10,119 326 1.2% 7,218 238 228 232 221 222 2,112 2,506 2,720 129 132 11.4%
Slide 39: Interbank’s income statement
Interbank’s income statement % chg % chg % chg Income Statement (S/ mn) 20 20 20 21 20 22 3M22 3M23 ' 21/ ' 20 ' 22/ ' 21 3M23/ 3M22 Interest income 3,865.1 3,510.8 4,670.3 999.6 1,404.7 (9.2%) 33.0% 40.5% Interest expenses (983.9) (811.0) (1,389.8) (240.5) (504.1) (17.6%) 71.4% 109.6% Gros s f i na
Slide 40: Interbank’s balance sheet
Interbank’s balance sheet % chg % chg % chg Bal ance Sheet (S/ mn) 20 20 20 21 20 22 3M22 3M23 ' 21/ ' 20 ' 22/ ' 21 3M23/ 3M22 A s s ets Cash and due from banks 17,716.8 14,413.6 11,340.2 11,509.2 10,802.3 (18.6%) (21.3%) (6.1%) Investments, net 8,951.2 10,047.1 9,568.4 10,533.3 10,709.4 12.2% (4.8
Slide 41: Definitions
Definitions Concept Definition Total revenues Gross financial margin + fee income from financial services, net + gain on financial transactions Efficiency ratio (Administrative expenses + Depreciation + amortization) / (total revenues) NIM (Annualized gross financial margin) / (Average interest-earn
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