Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q2 2017 Earnings Presentation
32 slides from Intercorp Financial Services's earnings presentation, 2017
Slide 1: Intercorp Financial Services Second Quarter 2017 Earnings Presentation
Intercorp Financial Services Second Quarter 2017 Earnings Presentation
Slide 2: Highlights 2Q17
Highlights 2Q17 IFRS Loan portfolio growth higher than the industry, 2Q17 Earnings up 7.5% 2Q17 net profit was S/ 209.1 million, an increase of 7.5% QoQ and 4.7% YoY; mainly due to higher net interest and similar income, as well as relatively stable provisions and administrative expenses Perform
Slide 3: IFS key indicators 2Q17
IFS key indicators 2Q17 IFRS Intercorp Financial Services' key indicators S/ million 2Q16 1Q17 2Q17 %chg QoQ %chg YoY Net interest and similar income 645.8 669.3 642.1 -4.1% -0.6% Fee income from financial services, net 215.4 220.7 218.2 -1.1% 1.3% Results Profit for the period 178.0 158.0 215.0 36.
Slide 4: IFS 2Q17 net profit increased 36.1% QoQ and 20.8% YoY
IFS 2Q17 net profit increased 36.1% QoQ and 20.8% YoY IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 21.3% 18.3% 19.6% ROAE 38.1% 28.2% 32.8% +4.7% +3.5% 54 56 209 49 200 195 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Interseguro IFS Net profit in S/ million Net profit in S/ milli
Slide 5: Relevant net income
Relevant net income* Local GAAP & IFRS Interbank - Local GAAP Interseguro - Local GAAP Inteligo - IFRS Net profit in S/ million Net profit in S/ million Net profit in S/ million ROAE 22.9% 19.5 % 20.9% ROAE 36.1% 20.0% 26.5% ROAE 38.1% 28.2% 32.8% +5.1% +13.0% +3.5% 205 216 200 54 56 49 31 28 23 2Q1
Slide 6: Interbank
CJ Intercorp Financial Services
Slide 7: Interbank's 2Q17 P&L analysis
Interbank’s 2Q17 P&L analysis IFRS Net interest and similar income Loan provision expense S/ million S/ million NIM 6.0% 5.6% 6.0% Cost of Risk 3.3% 3.4% 3.2% NIM on 9.8% 9.4% 9.5% Loans +1.9% +2.8% 225 569 585 556 210 214 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Total other income Other expenses S/ million S/
Slide 8: Performing loans grew 3.3% YoY, ahead of the system's growth
Performing loans grew 3.3% YoY, ahead of the system’s growth Performing loans Breakdown of loans S/ million S/ million %chg %chg 2Q16 1Q17 2Q17 QoQ YoY Consumer loans: +3.3% Credit cards 3,805.1 3,709.7 3,759.6 1.3% -1.2% Other consumer 4,417.7 4,531.7 4,660.5 2.8% 5.5% 25,588 Total consumer loans 8
Slide 9: Deposits grew 11.1% YoY, representing 72% of total funding
Deposits grew 11.1% YoY, representing 72% of total funding Funding structure Funding breakdown S/ million %chg %chg S/ million 2Q16 1Q17 2Q17 QoQ YoY Gross Loans 110.8% 105.9% 103.1% Deposits 23,240.8 24,956.6 25,813.6 3.4% 11.1% Deposits Retail 10,915.2 11,542.7 11,654.9 1.0% 6.8% Commercial (1) 12
Slide 10: Total PDL ratio remained below the system's average in 2Q17
Total PDL ratio remained below the system’s average in 2Q17 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 175.4% 174.0% 172.0% Ratio 3.0% 3.1% 2.9% 2.3% 2.3% 2.3% 2.7% 2.7% 2.8% 3.1% 3.3% 3.1% 2Q16 1Q17 2Q17 2Q16 1Q17
Slide 11: De-dollarization continued in the retail portfolio and SMEs
De-dollarization continued in the retail portfolio and SMEs Local GAAP figures Total loans Retail loans Commercial loans %PEN System 68.8% 67.5% 85.0% 86.7% 60.3% 57.1% 9.3% 7.6% 26.2% 26.1% 45.5% 47.3% 90.7% 92.4% 73.8% 73.9% 54.5% 52.7% 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 Retail loans breakdown Commerci
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 15.0% 15.2% 15.0% 15.8% 15.8% 20.00% 17.1% 16.6% 16.2% 16.1% 15.9% 15.00% 5.2% 4.9% 5.3% 5.4% 5.2% +1.8% +1.9% +2.0% Additional Regulatory Capital Requirement 10.00% 10.0% Total Regulatory Minimum 11.9% 11.7%
Slide 13: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 14: Interseguro's 2Q17 premiums analysis
Interseguro’s 2Q17 premiums analysis IFRS Net premiums by business unit Annuities net premiums S/ million S/ million +13.2% +12.3% 81 146 71 72 7 135 12 130 1 2 13 8 12 16 23 53 19 47 50 21 19 29 81 71 72 32 25 21 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Annuities Retail Insurance Individual Life Disability Pr
Slide 15: Net premiums increased QoQ and YoY after a market stabilization in annuities
Net premiums increased QoQ and YoY after a market stabilization in annuities Net premiums Adjustment of technical reserves S/ million S/ million Annuities Negative 23.1% 20.6% 23.2% discount rate 55 80 29 market share impact 177 8 1 135 146 135 130 5 101 12 3 12 13 7 47 50 53 167 0 127 94 71 72 81 2
Slide 16: Interseguro's investment portfolio grew 5.4% QoQ and 10.9% YoY
Interseguro’s investment portfolio grew 5.4% QoQ and 10.9% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 5.1% 6.3% 5.3% +10.9% 5,911 5,611 67 87 76 5,329 783 736 9 730 497 460 451 53 15 3 20 85 4,631 64 55 4,148 4,414 -5 -2 -8 -58 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Fixed
Slide 17: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 18: Inteligo's 2Q17 P&L analysis
Inteligo’s 2Q17 P&L analysis IFRS Net interest and similar income Fees from financial services S/ million S/ million -7.4% -7.7% 27 31 26 29 25 29 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Other income Other expenses S/ million S/ million -3.4% +30.0% 21 21 20 16 10 19 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 18 18
Slide 19: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million +6.5% +1.9% 13,794 14,520 14,684 1,620 1,659 1,651 2,915 2,988 2,866 10,879 11,532 11,818 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 Deposits AUM Revenues Net profit S/ million S/ million Fee (1) AUMs 1.0% 1.0% 0.9% ROAE 38.1% 28.2% 32.8% +0.7%
Slide 20: Summary
CJ Intercorp Financial Services
Slide 21: Takeaways
Takeaways Interbank: Loan portfolio growth higher than the industry, 2Q17 Earnings up 7.5% 1.3% QoQ growth in credit cards, after two consecutive quarters of contraction 3.3% YoY growth in total performing loans led to a 10 bps gain in market share, to 11.4% 11.1% YoY growth in total deposit
Slide 22: Update of Sura acquisition
Update of Sura acquisition CJ Intercorp Financial Services
Slide 23: Update of Sura acquisition
Update of Sura acquisition Structure Rationale Consolidation of IFS leadership in life insurance business #1 in AuM (life) + #1 in retirement annuities Wealth Universal bank Life insurance & retirement annuities management #3 in life insurance Proforma consolidated profile Increased size a
Slide 24: Appendix
Appendix CJ Intercorp Financial Services
Slide 25: IFS 2Q17 P&L
IFS 2Q17 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 2Q16 1Q17 2Q17 QoQ YoY Interest and similar income 914.1 944.5 919.3 -2.7% 0.6% Interest and similar expense -268.3 -275.2 -277.2 0.7% 3.3% Net interest and similar income 645.8 669.3 642.1 -4.1% -0.6% Provision for l
Slide 26: Interbank's profits increased 7.5% QoQ and 4.7% YoY mainly due to higher net interest and similar income
Interbank’s profits increased 7.5% QoQ and 4.7% YoY mainly due to higher net interest and similar income IFRS Banking Segment's P&L Statement S/ million %chg %chg 2Q16 1Q17 2Q17 QoQ YoY Interest and similar income 819.1 815.0 845.1 3.7% 3.2% Interest and similar expenses -250.5 -258.8 -260.6 0.7% 4.
Slide 27: 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 (2Q17) S/ million S/ million $250 +4.7% 2 4 12 $200 200 195 209 98 97 $150 2Q16 1Q17 2Q17 Net profit – Local GAAP $100 216 209 S/ million +5.1% $50 $0 Net profit (SBS) Net interest and Fee income f
Slide 28: Interseguro's results improved QoQ and YoY, yet still negatively impacted by discount rate impacts
Interseguro’s results improved QoQ and YoY, yet still negatively impacted by discount rate impacts on technical reserves Insurance Segment's P&L Statement S/ million %chg %chg 2Q16 1Q17 2Q17 QoQ YoY Net Interest and similar income 68.3 85.8 56.3 -34.4% -17.5% Fee income from financial services, net
Slide 29: 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 (2Q17) S/ million S/ million -1 4 17 -29 -55 -80 -12 -57 33 31 -76 33-119 -39 2Q16 1Q17 2Q17 Adjustment of technical reserves resulting from changes in discount rate Net profit – Local GAAP -12
Slide 30: Interseguro's 2Q17 net profit bridge to IFRS
Interseguro’s 2Q17 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 Different stocks of Assets and Liabilities in IFRS compared to 31 SBS GAAP resulted -39 Adjustment on the in a translation l
Slide 31: Inteligo's 2Q17 net profit increased 13.9% QoQ and 3.5% YoY
Inteligo’s 2Q17 net profit increased 13.9% QoQ and 3.5% YoY Wealth Management Segment's P&L Statement S/ million %chg %chg 2Q16 1Q17 2Q17 QoQ YoY Interest and similar income 41.2 39.7 39.2 -1.1% -4.7% Interest and similar expenses -14.2 -13.9 -14.2 2.4% 0.3% Net interest and similar income 27.0 25.8
Slide 32: Fl _—_._ Financial Services
Fl _—_._ Financial Services
Intercorp Financial Services — Q2 2017 Earnings Presentation on 6ix