Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q1 2017 Earnings Presentation
27 slides from Intercorp Financial Services's earnings presentation, 2017
Slide 1: Intercorp Financial Services First Quarter 2017 Earnings Presentation
Intercorp Financial Services First Quarter 2017 Earnings Presentation
Slide 2: Highlights 1Q17
Highlights 1Q17 IFRS Loan portfolio growth higher than the industry, 1Q17 results impacted by higher cost of risk and lower FX activity 1Q17 net profit was S/ 194.5 million, a decrease of 3.6% YoY and 13.0% QoQ, mainly due to higher provision expenses Performing loans grew 4.4% YoY, gaining 20 b
Slide 3: IFS key indicators 1Q17
IFS key indicators 1Q17 IFRS Intercorp Financial Services' key indicators S/ million 1Q16 4Q16 1Q17 %chg QoQ %chg YoY Net interest and similar income 643.9 675.7 669.3 -0.9% 3.9% Fee income from financial services, net 206.6 221.4 220.7 -0.3% 6.8% Results Profit for the period 60.7 386.3 158.0 -59.1
Slide 4: IFS 1Q17 net profit showed a significant increase YoY
IFS 1Q17 net profit showed a significant increase YoY IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 21.9% 21.1% 18.3% ROAE 20.5% 23.6% 28.2% -3.6% +60.6% 49 38 202 224 30 195 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Interseguro IFS Net profit in S/ million Net profit in S/ mill
Slide 5: Interbank
CJ Intercorp Financial Services
Slide 6: Interbank's profits decreased 13.0% QoQ and 3.6% YoY mainly due to higher provisions
Interbank’s profits decreased 13.0% QoQ and 3.6% YoY mainly due to higher provisions for loan losses IFRS Banking Segment's P&L Statement S/ million %chg %chg 1Q16 4Q16 1Q17 QoQ YoY Interest and similar income 792.4 837.3 815.0 -2.7% 2.8% Interest and similar expenses -243.0 -256.1 -258.8 1.1% 6.5%
Slide 7: Performing loans grew 4.4% YoY, ahead of the system's growth
Performing loans grew 4.4% YoY, ahead of the system’s growth Performing loans Breakdown of loans S/ million S/ million %chg %chg 1Q16 4Q16 1Q17 QoQ YoY +4.4% Consumer loans: Credit cards 3,671.8 3,853.5 3,709.7 -3.7% 1.0% +5.1% Other consumer 4,292.4 4,479.9 4,531.7 1.2% 5.6% Total consumer loans 7,
Slide 8: Retail deposits grew 7.5% YoY
Retail deposits grew 7.5% YoY Funding structure Funding breakdown S/ million %chg %chg S/ million 1Q16 4Q16 1Q17 QoQ YoY Gross Loans Deposits 99.9% 97.5% 105.9% Deposits* 25,268.7 26,898.6 24,956.6 -7.2% -1.2% Retail 10,733.4 11,747.4 11,542.7 -1.7% 7.5% -4.0% Commercial (1) 14,535.3 15,151.2 13,413
Slide 9: Total PDL ratio remained below the system's average in 1Q17
Total PDL ratio remained below the system’s average in 1Q17 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 186.4% 179.8% 174.0% Ratio 3.0% 2.7% 2.8% 2.3% 2.1% 2.0% 2.5% 2.6% 2.7% 2.8% 2.9% 3.3% 1Q16 4Q16 1Q17 1Q16 4Q16
Slide 10: De-dollarization continued in the retail portfolio
De-dollarization continued in the retail portfolio Local GAAP figures Total loans Retail loans Commercial loans %PEN System 68.4% 68.4% 84.2% 86.5% 60.4% 58.8% 10.1% 8.0% 26.8% 26.2% 45.4% 46.4% 89.9% 92.0% 73.2% 73.8% 54.6% 53.6% 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 Retail loans breakdown Commercial loans
Slide 11: Efficiency ratio slightly increased amid relatively stable fee income
Efficiency ratio slightly increased amid relatively stable fee income Fee income Operating expenses S/ million S/ million 350 30.0% 300 23.0% 23.5% 23.8% 25.0% 500 .0 50.0% 450 .0 41.7% 42.6% 43.3% 250 400 .0 40.0% 20.0% 350 .0 200 300 .0 30.0% 15.0% 250 .0 150 200 .0 20.0% 10.0% 343.9 372.6 368.9 1
Slide 12: Interbank's BIS ratio remained above regulatory requirements and the system average
Interbank’s BIS ratio remained above regulatory requirements and the system average System 14.7% 15.0% 15.2% 15.0% 15.8% 20.00% 17.1% 16.4% 16.2% 16.1% 15.9% 15.00% 5.2% 5.4% 5.3% 5.4% 5.2% +1.7% +1.8% +1.9% +1.9% Additional Regulatory Capital Requirement 10.00% 10.0% Total Regulatory Minimum 11.0%
Slide 13: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 14: Interseguro's results in 1Q17 were negatively impacted by discount rate impacts
Interseguro’s results in 1Q17 were negatively impacted by discount rate impacts on technical reserves Insurance Segment's P&L Statement S/ million %chg %chg 1Q16 4Q16 1Q17 QoQ YoY Net Interest and similar income 69.7 73.1 85.8 17.5% 23.1% Fee income from financial services, net -0.7 -0.9 -1.2 33.9%
Slide 15: 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 (1Q17) S/ million S/ million 132 102 29 4 23 -48 -80 33 -88 -76 33-119 -136 1Q16 4Q16 1Q17 -90 Adjustment of technical reserves resulting from -76 changes in discount rate Net profit – Local GAA
Slide 16: Total premiums earned less claims and benefits excluding the discount rate impact
Total premiums earned less claims and benefits excluding the discount rate impact on technical reserves decreased QoQ and YoY Net premiums Adjustment of technical reserves S/ million S/ million Annuities Negative 24.7% 23.5% 20.6% discount rate 88 -102 80 market share impact 177 228 149 6 177 135 1
Slide 17: Interseguro's investment portfolio grew 4.0% QoQ and 9.8% YoY
Interseguro’s investment portfolio grew 4.0% QoQ and 9.8% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 2.4% 7.5% 6.3% +9.8% 5,611 31 104 87 5,395 5,111 736 745 729 460 435 33 15 508 6 85 70 71 4,215 4,414 -6 -5 3,874 -16 -1 -8 -22 1Q16 4Q16 1Q17 Fixed Income Realiz
Slide 18: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 19: Inteligo's 1Q17 net profit increased 26.9% QoQ and 60.6% YoY
Inteligo’s 1Q17 net profit increased 26.9% QoQ and 60.6% YoY Wealth Management Segment's P&L Statement S/ million %chg %chg 1Q16 4Q16 1Q17 QoQ YoY Interest and similar income 37.8 38.5 39.7 3.0% 5.1% Interest and similar expenses -13.2 -17.1 -13.9 -18.7% 5.3% Net interest and similar income 24.6 21.
Slide 20: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million -1.3% +8.6% +1.6% +11.2% 14,864 14,520 13,376 1,681 1,695 3,226 1,659 2,579 2,988 10,797 11,638 11,532 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Deposits AUM % %chg in dollars % %chg in dollars Revenues Net profit S/ million S/ million Fee (1)
Slide 21: Summary
CJ Intercorp Financial Services
Slide 22: Takeaways
Takeaways Interbank: loan portfolio growth higher than the industry, 1Q17 results impacted by higher cost of risk and lower FX activity 4.4% YoY growth in performing loans led to a 20 bps gain in market share, to 11.3% 7.5% YoY growth in retail deposits, resulting in 12.7% market share in such
Slide 23: Appendix
Appendix CJ Intercorp Financial Services
Slide 24: IFS 1Q17 P&L
IFS 1Q17 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 1Q16 4Q16 1Q17 QoQ YoY Interest and similar income 903.7 951.4 944.5 -0.7% 4.5% Interest and similar expense -259.7 -275.7 -275.2 -0.2% 6.0% Net interest and similar income 643.9 675.7 669.3 -0.9% 3.9% Provision for l
Slide 25: 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 (1Q17) S/ million S/ million $250 -3.6% 10 5 $200 0 202 224 195 97 1Q16 4Q16 1Q17 $150 98 Net profit – Local GAAP $100 200 195 S/ million -9.4% $50 $0 220 239 Net profit (SBS) Net interest and Fee
Slide 26: Interseguro's 1Q17 net profit bridge to IFRS
Interseguro’s 1Q17 net profit bridge to IFRS Local GAAP vs. IFRS S/ million Different discount rates in valuation of DCF RE investments resulted in a higher result in SBS GAAP 23 Use of different discount rates and Different stocks of Adjustment on the mortality tables to Assets and Liabilities cost
Slide 27: Fl _—_._ Financial Services
Fl _—_._ Financial Services
Intercorp Financial Services — Q1 2017 Earnings Presentation on 6ix