Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q4 2015 Earnings Presentation
32 slides from Intercorp Financial Services's earnings presentation, February 2016
Slide 1: Intercorp Financial Services Fourth Quarter 2015 Earnings Presentation
Intercorp Financial Services Fourth Quarter 2015 Earnings Presentation
Slide 2: Highlights 4Q15 & FY15
Highlights 4Q15 & FY15 IFRS FY15 net profit was S/ 1,238.8 million, a 28.7% increase YoY, explained by increases of 18.7% in net interest and similar Intercorp income and 27.4% in other income Financial 4Q15 net profit was S/ 220.9 million, a decrease of 18.5% YoY and 45.9% QoQ, mainly a result
Slide 3: IFS key indicators 4Q15
IFS key indicators 4Q15 IFRS Intercorp Financial Services' key indicators S/ million 4Q14 3Q15 4Q15 %chg QoQ %chg YoY Net interest and similar income 556.4 623.9 652.1 4.5% 17.2% Results Fee income from financial services, net 197.0 214.8 214.7 0.0% 9.0% Profit for the period 271.2 408.6 220.9 -45.9
Slide 4: IFS 4Q15 net profit decreased 18.5% YoY and 45.9% QoQ
IFS 4Q15 net profit decreased 18.5% YoY and 45.9% QoQ IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 26.3% 28.2% 24.2% ROAE 13.2% 12.6% 1.9% +5.3% -82.9% 242 220 209 15 17 3 4Q14 3Q15 4Q15 4Q14 3Q15 4Q15 Interseguro IFS Net profit in S/ million Net profit in S/ millio
Slide 5: IFS key indicators FY15
IFS key indicators FY15 IFRS Intercorp Financial Services' key indicators S/ million %chg 2014 2015 15/14 Net interest and similar income 2,039.8 2,421.0 18.7% Fee income from financial services, net 704.1 818.4 16.2% Results Profit for the period 962.5 1,238.8 28.7% Profit excl. discount rate impac
Slide 6: Solid annual growth at IFS level in 2015
Solid annual growth at IFS level in 2015 IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 23.7% 24.9% 25.4% ROAE 26.5% 28.1% 20.0% 868 731 615 134 109 106 2013 2014 2015 2013 2014 2015 Interseguro IFS Net profit in S/ million Net profit in S/ million ROAE 47.6% 28.1% 67
Slide 7: Interbank
CJ Intercorp Financial Services
Slide 8: Interbank's profits grew 5.3% YoY
Interbank’s profits grew 5.3% YoY IFRS Banking Segment's P&L Statement S/ million %chg %chg 4Q14 3Q15 4Q15 QoQ YoY Interest and similar income 671.8 757.4 802.5 6.0% 19.5% Interest and similar expenses -187.5 -220.5 -242.7 10.1% 29.5% Net interest and similar income 484.4 536.9 559.8 4.3% 15.6% Prov
Slide 9: Performing loans grew 2.1% QoQ and 14.9% YoY
Performing loans grew 2.1% QoQ and 14.9% YoY Performing loans Breakdown of loans S/ million S/ million %chg %chg 4Q14 3Q15 4Q15 QoQ YoY +14.9% Consumer loans: Credit cards 3,183.4 3,677.3 3,703.1 0.7% 16.3% +10.8% Other consumer 3,581.4 4,117.6 4,229.9 2.7% 18.1% Total consumer loans 6,764.8 7,794.9
Slide 10: Interbank's deposits grew 10.0% QoQ and 22.5% YoY
Interbank’s deposits grew 10.0% QoQ and 22.5% YoY Funding structure Funding breakdown S/ million %chg %chg S/ million 4Q14 3Q15 4Q15 QoQ YoY Gross Loans Deposits 103.2% 104.4% 97.0% Deposits* 21,124.1 23,528.9 25,880.9 10.0% 22.5% Retail 9,001.1 9,975.4 10,685.9 7.1% 18.7% Commercial(1) 12,123.0 13,
Slide 11: Stable total PDL ratio in 4Q15
Stable total PDL ratio in 4Q15 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 167.9% 185.6% 193.9% Ratio 2.2% 2.4% 2.5% 2.6% 2.5% 2.0% 2.5% 2.3% 2.3% 2.3% 2.8% 3.3% 4Q14 3Q15 4Q15 4Q14 3Q15 4Q15 IBK IBK PDL 2.5% 2.3% 2.
Slide 12: Strong de-dollarization trend in the last year
Strong de-dollarization trend in the last year Local GAAP figures Total loans Retail loans Commercial loans %PEN System 57.1% 67.1% 77.5% 82.8% 46.5% 59.2% 15.3% 11.3% 36.6% 28.8% 59.5% 48.3% 84.7% 88.7% 63.4% 71.2% 40.5% 51.7% 4Q14 4Q15 4Q14 4Q15 4Q14 4Q15 Retail loans breakdown Commercial loans br
Slide 13: Fee income increased 11.3% YoY and efficiency ratio improved 290 bps YoY
Fee income increased 11.3% YoY and efficiency ratio improved 290 bps YoY Fee income Operating expenses S/ million S/ million 350 .0 30.00% 300 .0 24.2% 500 .0 50.0% 22.6% 25.00% 43.7% 21.7% 40.5% 40.8% 450 .0 250 .0 400 .0 40.0% 20.00% 350 .0 200 .0 300 .0 30.0% 15.00% 250 .0 150 .0 200 .0 10.00% 20
Slide 14: 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 14.1% 14.4% 14.3% 14.2% 14.2% 20.00% 16.7% 16.5% 15.2% 15.6% 15.5% 15.00% 6.0% 5.8% +1.8% 5.6% +1.8% 5.5% 5.6% +1.6% Additional Regulatory Capital +1.7% Requirement 10.00% 10.0% Total Regulatory Minimum 5.00%
Slide 15: Strong 2015 at Interbank with solid ROAE levels
Strong 2015 at Interbank with solid ROAE levels IFRS Total revenues(1) Net Interest Margin (NIM) S/ million NIM NIM after NIM on loans provisions 3,343 9.9% 2,751 9.5% 9.4% 2,486 6.2% 6.1% 6.0% 4.7% 4.6% 4.1% 2013 2014 2015 2013 2014 2015 2013 2014 2015 2013 2014 2015 Operating expenses Net profit S
Slide 16: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 17: Interseguro's profit excluding discount rate impacts decreased 8.3% QoQ and 17.0% YoY
Interseguro’s profit excluding discount rate impacts decreased 8.3% QoQ and 17.0% YoY Insurance Segment's P&L Statement S/. million %chg %chg 4Q14 3Q15 4Q15 QoQ YoY Net Interest and similar income 54.0 64.1 65.3 1.9% 21.1% Fee income from financial services, net -0.7 -1.0 -0.5 -52.6% -34.0% Other in
Slide 18: 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 (4Q15) S/. million S/. million -93.2% 156 6 0 128 4 4 53 4 22 33 32 29 26 -23 33 33 4Q14 3Q15 4Q15 Adjustment of technical reserves resulting from 20 changes in discount rate Net profit – Local
Slide 19: Total premiums earned less claims and benefits decreased QoQ and YoY
Total premiums earned less claims and benefits decreased QoQ and YoY Net premiums Adjustment of technical reserves S/ million S/ million Annuities (1) Discount rate 22.8% 24.2% 20.2% 22 128 -23 market share impact 151 1 214 110 5 165 177 44 2 41 11 46 11 47 145 9 108 158 3 116 120 44 4Q14 3Q15 4Q15
Slide 20: Interseguro's investment portfolio grew 5.1% QoQ and 6.9% YoY
Interseguro’s investment portfolio grew 5.1% QoQ and 6.9% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 8.8% 8.0% 6.6% +6.9% Results from 97 94 79 4,659 4,897 investments 4,581 713 653 695 536 12 636 527 40 53 7 11 3,647 15 3,292 3,437 66 65 54 -13 -4 4Q14 3Q15 4Q15
Slide 21: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 22: 4Q15 results were affected by higher impairment losses on available-for-sale investments
4Q15 results were affected by higher impairment losses on available-for-sale investments Wealth Management Segment's P&L Statement S/ million %chg %chg 4Q14 3Q15 4Q15 QoQ YoY Interest and similar income 29.3 35.6 40.6 13.9% 38.7% Interest and similar expenses -13.0 -12.8 -13.7 7.2% 5.9% Net interest
Slide 23: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million +23.0% +17.8% 1,686 12,355 13,192 1,639 10,724 2,299 2,508 2,302 1,430 10,057 10,685 8,422 4Q14 3Q15 4Q15 4Q14 3Q15 4Q15 Deposits AUM Revenues Net profit S/ million S/ million Fee (1) 1.3% 1.5% 1.0% AUMs ROAE 13.2% 12.6% 1.9% +8.9%
Slide 24: Summary
CJ Intercorp Financial Services
Slide 25: Sound FY15 operating performance in all segments
Sound FY15 operating performance in all 3 segments Interbank 14.9% YoY growth in performing loans and 17.3% growth in consumer loans 22.5% YoY growth in total deposits, resulting in 12.1% market share Dollar exposure within the loan book reduced by 780 bps YoY Interseguro Premiums grew 7
Slide 26: Appendix
Appendix CJ Intercorp Financial Services
Slide 27: IFS 4Q15 P&L
IFS 4Q15 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 4Q14 3Q15 4Q15 QoQ YoY Interest and similar income 759.1 860.1 912.0 6.0% 20.1% Interest and similar expense -202.7 -236.1 -259.9 10.0% 28.2% Net interest and similar income 556.4 623.9 652.1 4.5% 17.2% Provision for
Slide 28: IFS FY15 P&L
IFS FY15 P&L IFRS Intercorp Financial Services' P&L Statement S/ million %chg %chg 2013 2014 2015 15/14 14/13 Interest and similar income 2,405.5 2,828.7 3,342.7 18.2% 17.6% Interest and similar expenses -657.8 -788.9 -921.7 16.8% 19.9% Net interest and similar income 1,747.7 2,039.8 2,421.0 18.7% 1
Slide 29: Interbank's FY15 net profit bridge to IFRS
Interbank’s FY15 net profit bridge to IFRS Local GAAP vs. IFRS $1,000 S/ million $900 18 8 12 $800 $700 344 337 Lower Release of depreciation and generic Cross currency swap $600 lower taxes provisions loss change from unrealized earnings $500 (Local GAAP) to loss (IFRS) 868 860 $400 Mainly re-class
Slide 30: Interseguro's FY15 net profit bridge to IFRS
Interseguro’s FY15 net profit bridge to IFRS Local GAAP vs. IFRS S/ million Different stocks of IFRS impairment loss Assets and Liabilities in policy is more rigorous IFRS compared to SBS than the one used in GAAP resulted in a SBS GAAP translation gain Use of different discount rates and mortality
Slide 31: 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 (4Q15) S/ million S/ million +5.3% $250 4 2 $200 21 242 220 209 $150 92 91 4Q14 3Q15 4Q15 220 $100 193 Net profit – Local GAAP S/ million $50 +0.8% $0 Net profit Net interest Fee income Provision f
Slide 32: Fl _—_._ Financial Services
Fl _—_._ Financial Services
Intercorp Financial Services — Q4 2015 Earnings Presentation on 6ix