Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q3 2016 Earnings Presentation
27 slides from Intercorp Financial Services's earnings presentation, 2016
Slide 1: Intercorp Financial Services Third Quarter 2016 Earnings Presentation
Intercorp Financial Services Third Quarter 2016 Earnings Presentation
Slide 2: Highlights 3Q16
Highlights 3Q16 IFRS 3Q16 net profit was S/ 208.7 million, a 17.2% growth QoQ but a 48.9% reduction YoY The QoQ performance was mostly explained by a 10.9% growth in profits at Interbank, resulting from lower provision Intercorp expenses The YoY decline in profits was mainly a result of higher
Slide 3: IFS key indicators 3Q16
IFS key indicators 3Q16 IFRS Intercorp Financial Services' key indicators S/ million 3Q15 2Q16 3Q16 %chg QoQ %chg YoY Net interest and similar income 623.9 645.8 657.5 1.8% 5.4% Fee income from financial services, net 214.8 215.4 219.0 1.7% 2.0% Results Profit for the period 408.6 178.0 208.7 17.2%
Slide 4: IFS 3Q16 net profit increased 17.2% QoQ
IFS 3Q16 net profit increased 17.2% QoQ IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 28.2% 21.3% 22.0% ROAE 12.6% 38.1% 33.7% -8.6% >2x 54 48 242 222 200 17 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 Interseguro IFS Net profit in S/ million Net profit in S/ million ROAE 152.7% n
Slide 5: Interbank
CJ Intercorp Financial Services
Slide 6: Interbank's profits increased 10.9% QoQ
Interbank’s profits increased 10.9% QoQ IFRS Banking Segment's P&L Statement S/ million %chg %chg 3Q15 2Q16 3Q16 QoQ YoY Interest and similar income 757.4 819.2 830.5 1.4% 9.6% Interest and similar expenses -220.5 -250.5 -260.2 3.9% 18.0% Net interest and similar income 536.9 568.7 570.3 0.3% 6.2% P
Slide 7: Performing loans grew 1.4% QoQ and 5.7% YoY
Performing loans grew 1.4% QoQ and 5.7% YoY Performing loans Breakdown of loans S/ million S/ million %chg %chg 3Q15 2Q16 3Q16 QoQ YoY +5.7% Consumer loans: Credit cards 3,677.3 3,805.1 3,953.9 3.9% 7.5% +4.2% Other consumer 4,117.6 4,417.7 4,476.4 1.3% 8.7% 24,775 25,113 Total consumer loans 7,794.
Slide 8: Interbank's retail deposits increased 3.2% QoQ and 13.0% YoY
Interbank’s retail deposits increased 3.2% QoQ and 13.0% YoY Funding structure Funding breakdown S/ million %chg %chg S/ million 3Q15 2Q16 3Q16 QoQ YoY Gross Loans 104.4% 110.8% 102.2% Deposits* 23,528.9 23,240.9 25,529.9 9.8% 8.5% Deposits Retail 9,975.4 10,915.2 11,269.1 3.2% 13.0% +5.2% Commercia
Slide 9: Total PDL ratio remained below system's average in 3Q16
Total PDL ratio remained below system’s average in 3Q16 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 185.6% 175.4% 177.0% Ratio 2.9% 2.9% 2.6% 2.2% 2.3% 2.0% 2.3% 2.7% 2.6% 2.8% 3.1% 2.8% 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16
Slide 10: De-dollarization trends start to stabilize YoY
De-dollarization trends start to stabilize YoY Local GAAP figures Total loans Retail loans Commercial loans %PEN System 65.8% 67.5% 82.2% 84.9% 57.6 % 58.4% 11.6% 9.1% 28.7% 26.9% 47.2% 47.5% 88.4% 90.9% 71.3% 73.1% 52.8% 52.5% 3Q15 3Q16 3Q15 3Q16 3Q15 3Q16 Retail loans breakdown Commercial loans br
Slide 11: Fee income increased 5.2% and efficiency ratio slightly improved QoQ
Fee income increased 5.2% and efficiency ratio slightly improved QoQ Fee income Operating expenses S/ million S/ million 350 .0 30.0% 300 .0 22.8% 23.6% 25.0% 500 .0 50.0% 21.7% 41.7% 41.3% 40.5% 450 .0 250 .0 400 .0 40.0% 20.0% 350 .0 200 .0 300 .0 30.0% 15.0% 250 .0 150 .0 200 .0 10.0% 20.0% 202.6
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 14.2% 14.2% 14.7% 15.0% 15.2% 20.00% 16.4% 16.2% 16.1% 15.6% 15.5% 15.00% 5.4% 5.3% 5.4% 5.5% 5.6% +1.8% +1.7% +1.8% +1.9% Additional Regulatory Capital +1.6% Requirement 10.00% 10.0% Total Regulatory Minimum
Slide 13: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 14: Interseguro's results excluding discount rate impacts improved QoQ
Interseguro’s results excluding discount rate impacts improved QoQ, but decreased YoY mainly due to a negative translation result in 3Q16 Insurance Segment's P&L Statement S/ million %chg %chg 3Q15 2Q16 3Q16 QoQ YoY Net Interest and similar income 64.1 68.3 67.4 -1.3% 5.1% Fee income from financial
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 (3Q16) S/ million S/ million 156 128 26 29 -1 25 33 -55 -79 33-119 -57 -54 3Q15 2Q16 3Q16 Adjustment of technical reserves resulting from changes in discount rate -54 Net profit – Local GAAP -89
Slide 16: Net premiums improved QoQ as the annuity market recovered
Net premiums improved QoQ as the annuity market recovered after regulatory changes, yet still below the previous year’s levels Net premiums Adjustment of technical reserves S/ million S/ million Annuities 24.2% 23.1% 21.5% Negative -128 55 79 market share discount rate impact 164 214 135 3 4 3 5 44
Slide 17: Interseguro's investment portfolio grew 5.7% QoQ and 20.9% YoY
Interseguro’s investment portfolio grew 5.7% QoQ and 20.9% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 8.0% 5.1% 7.8% +20.9% 5,634 94 67 5,329 12 9 107 764 11 4,659 730 56 53 9 523 20 695 451 63 64 67 527 -37 -58 4,148 4,347 3Q15 2Q16 3Q16 3,437 Fixed Income Reali
Slide 18: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 19: Inteligo's net profit decreased 9.8% QoQ but increased more than twofold YoY
Inteligo’s net profit decreased 9.8% QoQ but increased more than twofold YoY Wealth Management Segment's P&L Statement S/ million %chg %chg 3Q15 2Q16 3Q16 QoQ YoY Interest and similar income 35.6 41.2 34.7 -15.8% -2.6% Interest and similar expenses -12.8 -14.2 -14.9 4.9% 16.3% Net interest and simil
Slide 20: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million +18.2% +4.2% 13,794 14,605 1,708 12,355 1,639 1,620 2,915 3,139 2,299 10,057 10,879 11,465 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 Deposits AUM Revenues Net profit S/ million S/ million Fee (1) 1.5% 1.0% 1.1% ROAE 12.6% 38.1% 33.7% AUMs +54.
Slide 21: Summary
CJ Intercorp Financial Services
Slide 22: 3Q16 Takeaways
3Q16 Takeaways Interbank Slower growth given current market environment 13.0% YoY growth in retail deposits led to a 60 bps gain in market share on such segment PDL ratio improved by 10 bps QoQ to 2.6%, remaining below the system’s average of 2.9% in 3Q16 Interseguro Premiums recovered Q
Slide 23: Appendix
Appendix CJ Intercorp Financial Services
Slide 24: IFS 3Q16 P&L
IFS 3Q16 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 3Q15 2Q16 3Q16 QoQ YoY Interest and similar income 860.1 914.2 935.5 2.3% 8.8% Interest and similar expense -236.1 -268.4 -278.0 3.6% 17.7% Net interest and similar income 623.9 645.8 657.5 1.8% 5.4% Provision for loa
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 (3Q16) S/ million S/ million -8.6% $250 5 242 5 200 222 0 $200 3Q15 2Q16 3Q16 93 93 $150 Net profit – Local GAAP 222 S/ million $100 211 -11.3% $50 238 205 211 $0 Net profit (SBS) Net interest and
Slide 26: Interseguro's 3Q16 net profit bridge to IFRS
Interseguro’s 3Q16 net profit bridge to IFRS Local GAAP vs. IFRS S/ million Use of different discount rates and mortality tables to calculate technical reserves 25.6 The appreciation of Differences on costs of sold Different stocks of RE investments is only securities due to previous Assets and Liab
Slide 27: Fl _—_._ Financial Services
Fl _—_._ Financial Services
Intercorp Financial Services — Q3 2016 Earnings Presentation on 6ix