Slide 1: Investor Presentation
Investor Presentation June 2024
Slide 2: Four key businesses
Universal bank Insurance company with strategic focus on focused on retail life & annuities Advisory firm for the Pillar for building our emerging payments wealthy ecosystem
Slide 3: Intercorp Group: striving to make Peru the best place to raise a family
Intercorp Group: striving to make Peru the best place to raise a family in Latin America Financial services Retail US$ 8.9bn Revenues in 2023 ~3.4% of Peru 2023 GDP Education Other (1) Source: Company information and Central Bank 2 1) Related companies excluding Aviva and Urbi
Slide 4: Leading digital financial platform
Leading digital financial platform Financial highlights Four key businesses 99.3% 99.8% 100.0% Universal bank with Insurance company Advisory firm for strategic focus on focused on life & the emerging As of Mar24 S/ mn | US$ mn retail annuities wealthy Total assets (1) 92,466 | 24,870 Consumer loans
Slide 5: Digital financial platform with strategic focus on key businesses and profitability
Digital financial platform with strategic focus on key businesses and profitability Growth Digital Focus Leading digital platform Creating the best Core businesses with profitable growth digital experience 15.1% 21.8% +12% +14% 77% Digital banking MS retail deposits MS consumer banking loans YoY ins
Slide 6: Sustainable growth
1 2 Sustainable Building a growth digital platform 3 Key businesses 4 Takeaways
Slide 7: Sustainable growth
1 2 Sustainable Building a growth digital platform 3 Key businesses 4 Takeaways
Slide 8: Economy starts to show signs of recovery
Economy starts to show signs of recovery Quarterly GDP growth YoY (%) Interest rates (%) Soles reference rate (BCRP) Dollar reference rate (FED) 1.4% 2024(E) 7.75 7.75 May24 7.50 3.0% 5.75% 6.75 6.00 -0.4% -0.3% -0.5% -1.0% 5.50 5.50 5.50 5.25 4.75 1Q23 2Q23 3Q23 4Q23 1Q24 Mar23 Jun23 Sep23 Dec23 Ma
Slide 9: Moderate improvement in leading indicators
Moderate improvement in leading indicators Consumer confidence index & Business trust (%) FY24 Private investment estimate Consumer confidence index Business trust 2.3% 1.8% 59 Mar23 Mar24 55 52 51 52 FY24 Public investment estimate 44 39 39 39 35 4.0% 4.0% Mar23 Jun23 Sep23 Dec23 Mar24 Mar23 Mar24
Slide 10: Delivering consistent return to our shareholders
Delivering consistent return to our shareholders (S/ mn) (S/ mn) Net profit (2) 1,040 1,222 265 1,201 1,172 901 Net profit (2) 361 436 257 304 203 315 Payout Ratio 45% 25% n.m. 50% 50% 45% Payout Ratio 68% 46% 78% 66% 49% 48% Dividends declared(1) n.m. 600 245 467 200 200 202 405 150 302 100 0 2018
Slide 11: Net profit impacted by investment results and high CoR
Net profit impacted by investment results and high CoR IFS net profit (S/ mn) ROE 19.3% 19.1% 11.3% 11.5% 5.6% ROE 21.0% 19.8% 11.2% 6.8% 7.1% 28.2% 92.4%86.2% 138.9% n.m. 1,360 1,374 273 292 Includes Banking(2) 255 Insurance non-recurring 856 ~S/-100 mn(1) 250 31 140 (20) 1,800 2021 2022 2023 3M23
Slide 12: Consistent growth in revenues across all segments
Consistent growth in revenues across all segments IFS quarterly revenues (S/ mn) NIM 4.1% 5.0% 5.3% 5.1% 5.2% NIM 4.0% 4.9% 5.5% 5.5% 5.3% 5,020 1,545 4,571 1,559 1,523 3,974 Insurance Banking 6,975 6,341 1,193 1,209 392 384 5,922 2021 2022 2023 3M23 3M24 2021 2022 2023 3M23 3M24 378 396 1,733 manag
Slide 13: Proactive risk management amid high CoR and strong coverage
Proactive risk management amid high CoR and Banking strong coverage Banking Retail Commercial Credit cards & 21% personal loans 8.3% 7.9% Payroll deduction 5.4% 45% loans 3.2% 5.2% 12% Mortgages 4.7% 0.6% 0.6% Commercial 1.4% 22% 1Q23 4Q23 1Q24 Cost of risk (%) Banking – Performing loans breakdown a
Slide 14: Continuous focus on efficiency
Continuous focus on efficiency Optimizing our distribution channels (Units) Variable expenses drive costs higher – Other expenses (S/ mn) 2020 3M24 % Change Financial stores 215 151 -30% 2,689 2,750 2,263 +2% ATMs 1,640 1,672 +2% YoY Correspondent 680 690 5,529 7,011 +27% agents(1) Sales force 899 1
Slide 15: Building a digital platform
1 2 Sustainable Building a growth digital platform 3 Key businesses 4 Takeaways
Slide 16: Scalable digital proposition
Scalable digital proposition IzipayYa Izipay Digital bank Investments Insurance Marketplace Loyalty & promotions Digital My financing finances Piggy Payments bank 2.6 mn 1.4 mn IBK app users Izipay - merchants 100% digital account
Slide 17: Consolidating digital achievements in banking
Consolidating digital achievements in banking 60% 63% 76% 69% Mar23 Mar24 Mar23 Mar24 Digital sales - Retail Digital self-service (% of digital self-service) (1) (% of products sold digitally) 72% 77% 60 61 Mar23 Mar24 Mar23 Mar24 Digital customers - Retail NPS Retail (1) (Points – Retail Banking) (
Slide 18: Working towards digital innovation in insurance & wealth management
Working towards digital innovation in insurance & wealth management 63% 13% 82% 12% 75% Insurance 50% 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 SOAT digital sales Digital premiums – Vida cash Digital self-service (% of products sold digitally) (% of total premiums Vida cash) (% of digital self-service) 41% 45%
Slide 19: Key businesses
1 2 Sustainable Building a growth digital platform 3 Key businesses 4 Takeaways
Slide 20: Double digit growth in lower-risk products & segments
Double digit growth in lower-risk products Banking & segments Includes Impulso MyPeru 673 437 438 307 597 613 398 233 ~60% 197 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Payroll deductible loans disbursements (S/ mn) Mortgage disbursements (S/ mn) SME disbursements (S/ mn) +13% YoY | +10% QoQ +10%
Slide 21: Strong market relevance in key products
Banking Strong market relevance in key products 22.3 21.9 19.2 18.9 13.7 14.6 Mar23 Mar24 Mar23 Mar24 Mar23 Mar24 MS Consumer banking loans (%) MS Retail banking loans (%) MS Payroll inflow (%) 14.9 15.1 9.7 16.9 9.2 11.0 Mar23 Mar24 Mar23 Mar24 Mar23 Mar24 MS Retail banking deposits (%) MS Commerci
Slide 22: Loan book boosted by Impulso MyPeru
Loan book boosted by Impulso MyPeru: Banking Almost S/ 1 billion disbursed by Interbank SME 36% Mid- sized 15 auctions 50%-98% 64% +S/ 8,200 mm guarantee levels Impulso MyPeru disbursements (S/ mn) Average BCP Grace period 22% auction rate 6 months Others 42% < 13% BBVA 19% Interbank 17% Market shar
Slide 23: Strategic focus on consumer loans
Strategic focus on consumer loans Distinctive loan breakdown… …when compared to the banking system Banking System Commercial Commercial 44% 60% Mortgages Consumer Mortgages Consumer 39% Retail loans 47% loans Retail 61% 53% 40% 56% S/ 46.1BN S/ 26.0BN S/ 345.8BN S/ 137.1BN Leading position in consum
Slide 24: Solid risk management capabilities
Solid risk management capabilities 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 4.3% 4.5% 3.8% 3.9% 4.0% BBVA BBVA 5.9% 2.6% BBVA 4.7% BCP BCP 4.9% 3.4% BCP 4.4%
Slide 25: Evolving loan mix impacting NIM
Banking Evolving loan mix impacting NIM % of Unsecured 24% 22% 21% loans (2) Retail loans Commercial loans NIM Risk-adjusted NIM Financial investments Cash and banks Yield on loans Return on interest-earning assets 68,572 65,554 66,092 18% 14% 15% 11.5% 11.6% 10.9% 11.3% 10.8% 15% 18% 17% 9.3% 8.7%
Slide 26: Diversified funding base with strength in retail deposits
Diversified funding base with strength in retail Banking deposits Significant deposits base A growing retail deposit-gathering franchise MS 2018: 13.0% MS Mar24: 15.1% MS 2023: 15.1% Other 6% Bonds 7% Demand Savings 11.7% 22% 37% 8.3% Due to banks Deposits 15% 78% 3.9% 2.5% Time 35% CAGR 2017-22 1Q2
Slide 27: Decrease in cost of funds on better funding mix and lower market rates
Decrease in cost of funds on better funding Banking mix and lower market rates LDR(1) 99% 102% 96% System’s LDR(1) 104% 102% 97% Cost of funds Cost of deposits Ref. rate YoY(3) - 175bps (S/) 61,460 +75bps (US$) 58,572 59,096 8% 7% 11% 12% 13% 15% 4.2% 4.2% 4.0% 4.0% 3.6% 36% 39% 38% 3.8% 3.8% 3.6% 3
Slide 28: Plin: 4x increase YoY in transactions and 2.6x in volume
Plin: 4x increase YoY in transactions and 2.6x in Payments volume, increasing customer engagement IBK Share 45% 46% 46% (%) 15.4 +44% YoY 14.2 10.7 QR Share 9% 14% 18% (%) Mar23 Dic23 Mar24 83.4 +4x YoY Users (mn) 76.6 IBK Share 35% 40% 42% (%) 11.9 11.9 +2.6x YoY 21.6 4.6 1Q23 4Q23 1Q24 1Q23 4Q23 1
Slide 29: Acquiring business continues to grow in all segments
Acquiring business continues to grow Payments in all segments +17% YoY +11% YoY Corporate 1.2 1.3 1.4 13.5 15.5 15.1 Mid- Sized Mar23 Dec23 Mar24 1Q23 4Q23 1Q24 Merchants (mn) Volume (S/ bn) SMEs +42% YoY +40% YoY 747 814 1.7 1.6 574 1.2 Micro merchants Mar23 Dec23 Mar24 1Q23 4Q23 1Q24 Micro merchan
Slide 30: We continue to focus on our payment ecosystem
Payments We continue to focus on our payment ecosystem 129 110 111 Additional cash flow Increased float in merchants’ -13% QoQ coming to IBK accounts +1% YoY IBK accounts +20% YoY +40% YoY 1Q23 4Q23 1Q24 Izipay - Revenues (S/ mn) 32 25 26 +6% QoQ Greater transactional volumes Float from micro mercha
Slide 31: Key player in Peru's life insurance business
Insurance Key player in Peru’s life insurance business Strategic focus on life insurance Strong performance in most products (Insurance premiums and collections breakdown) (Gross premiums and collections by business unit - S/ mn) Other life Reg. P&C Other Life 20% annuities 32% Individual Life Priva
Slide 32: Insurance investment portfolio
Insurance Insurance investment portfolio Insurance - ROIP (%) Insurance - Portfolio breakdown 6.6% 5.0% 10% 10% 6% 5% 84% 85% 1Q23 1Q24 1Q23 1Q24 Fixed Income Equity and Mutual Funds Real Estate 31
Slide 33: 11.5% YoY growth in wealth management's AUM
Wealth 11.5% YoY growth in wealth management’s AUM management and slight recovery of investment portfolio AUM (US$ mn) Diversified revenue generation (S/ mn) 6,250 6,462 Net Interest Income Net Fee Income Other Income 5,793 +11.5% YoY +3.5% QoQ Fee’s as % of AuM 0.7% 0.6% 0.6% 1Q23 4Q23 1Q24 70 67 4
Slide 34: Takeaways
1 2 Sustainable Building a growth digital platform 3 Key businesses 4 Takeaways
Slide 35: Strong corporate governance
Strong corporate governance Board of directors BOD with independent members Carlos Rodríguez-Pastor Chairman IFS: 4 out of 7 Felipe Morris Fernando Zavala Director Director Strong corporate governance Highly supervised related party Alfonso Bustamante Cayetana Aljovín exposure, well below regulatory
Slide 36: ESG updates
ESG updates Sustainability update Environmental Social Governance & Economic Great Place to Work 2024 New Green Financings IFS was included in S&P's Sustainability Yearbook 2024 Financing related to agricultural and forestry activities holding Sustainability Certifications for up to Interbank #1 in
Slide 37: Operating trends 1Q24
Operating trends 1Q24 Capital Profitability Loan growth 2024 3M24 2024 3M24 Guidance Actual Guidance Actual Mid single digit growth IBK TCR > 14% 15.1% IFS ROE > 12% 5.6% in total loans(1) IBK CET1 ∼ 11% 11.3% To remain at sound levels Still below midterm range Total loans +2.2% Revenues Cost of ris
Slide 38: Takeaways
Takeaways 1 2 3 In 2024, macro environment Investment portfolio Selective growth in retail is showing first recovery impacted by mark-to-market banking with a slight signs with upside potential improvement in CoR 4 5 6 Impulso MyPerú enables Tight management of We continue strengthening growth in co
Slide 39: Appendix
Appendix
Slide 40: Sound capitalization levels
Sound capitalization levels Banking System 16.7% 16.4% 17.1%(1) 145.6% 129.3% TCR 118.8% Insurance 100.0% Reg. min. 1Q23 4Q23 1Q24 15.2% 15.5% 15.1% 11.8% 11.3% 11.1% Solvency ratio Banking 11.0% Reg. 6.5% 17.6% management min. Reg. 16.2% 17.4% min. Wealth 12.0% Reg. min. 1Q23 4Q23 1Q24 1Q23 4Q23 1Q
Slide 41: Customer base growth continues across businesses
Customer base growth continues across businesses 5.2 4.6 +12% YoY 2.5 2.9 +14% YoY Mar23 Mar24 Mar23 Mar24 Banking – customers (mn) (1) Insurance – customers (mn) 1.4 1.2 68 76 +12% YoY +17% YoY Mar23 Mar24 Mar23 Mar24 Wealth management – customers (th) Payments – merchants (mn) 40 (1) New methodolo
Slide 42: Overview of Peruvian banking system
Overview of Peruvian banking system Decreasing loan growth – Banking system gross loans (S/ bn) Profitability stabilizing – Banking system net profit (S/ mn) ROE 13.3% 17.3% 14.4% 17.7% 13.7% 350 357 351 353 346 10,119 9,226 7,218 238 228 214 221 209 2,720 2,233 112 129 137 132 137 2021 2022 2023 Ma
Slide 43: Izipay, pillar for building our payments ecosystem
Izipay, pillar for building our payments ecosystem Our business lines and main clients Payments Correspondent Credit cards acquirer banking processor 92% 4% 4% Fee income share 3M24 Fee income share 3M24 Fee income share 3M24 42
Slide 44: Net interest income driving growth in 3M24 revenues
Net interest income driving growth in 3M24 revenues % YoY +6% -15% -7% +1% +55 -31 -9 1,209 1,193 3M23 Net interest income Fee income Other income 3M24 Banking – Revenue bridge from 3M23 to 3M24 (S/ mn) 43
Slide 45: Contained banking NPLs despite growth in provisions
Contained banking NPLs despite growth in provisions, S2 reflects rescheduling (S2+S3) ratio & S3 NPL ratio (%) Impairment loss on loans, net (S/ mn) & Cost of risk (%) 6.0% 616 14.1% 14.0% 581 549 5.0% 11.2% 5.0% 5.2% 4.0% 417 4.7% 368 (1) 3.0% 278 3.6% 1,291 210 3.2% 3.2% 3.4% 2.0% 152 2.5% (1) 2.6
Slide 46: Reactiva loan balances down 63% YoY
Reactiva loan balances down 63% YoY, representing 1% of Interbank’s portfolio Reactiva Peru loan balances by segment (S/ bn) 1Q24 Segment YoY Corporate -65% 1.7 Corporate: n.m. Mid-sized -63% Mid-sized: S/ 0.4 bn SME: S/ 0.2 bn SME -63% 0.8 0.6 Total -63% 1Q23 4Q23 1Q24 45 SME Mid-sized Corporate
Slide 47: Manageable dollarization levels at Interbank
Manageable dollarization levels at Interbank Total loans Retail loans Commercial loans % PEN 68% 72% 90% 93% 57% 58% System 7% 4% 27% 26% 50% 54% 93% 96% 73% 74% 50% 46% 1Q19 1Q24 1Q19 1Q24 1Q19 1Q24 Retail loans breakdown Commercial loans breakdown Consumer Mortgages Corporate Medium Small & Micro
Slide 48: Manageable dollarization levels
Manageable dollarization levels Gross Loans by segment & percentage in S/ Currency mix Mar24 94% 94% 94% 95% 96% 96% 92% 92% 93% Gross Loans Total Assets 89% 78% 76% 73% 74% 73% 74% 74% 73% 74% USD USD 71% 26% 30% 64% 58% 52% 52% 52% 51% 50% 49% 44% 46% S/ S/ 74% 2015 2016 2017 2018 2019 2020 2021 2
Slide 49: Growth in total revenues driven by NIM recovery
Growth in total revenues driven by NIM recovery Total revenues(1) (S/ mn) NIM (%) 6,563 6,975 +2% 5.0% 5.3% 5.1% 5.2% 5,922 YoY 4.1% 1,692 1,733 2021 2022 2023 3M23 3M24 2021 2022 2023 3M23 3M24 Net profit (S/ mn) ROE (%) 1,800 1,678 19.3% 19.1% 1,079 11.3% 11.5% 5.6% 267 141 2021 2022 2023 3M23 3M2
Slide 50: Consistent asset growth with a balanced funding
Consistent asset growth with a balanced funding Total gross loans (S/ mn) Total deposits (S/ mn) 47,025 48,249 47,280 47,570 48,898 48,531 49,188 49,817 51,100 44,688 2021 2022 2023 3M23 3M24 2021 2022 2023 3M23 3M24 AUM evolution (S/ mn) Net shareholders’ equity (S/ mn) 10,008 10,306 22,981 23,182
Slide 51: Definitions
Definitions Concept Definition Net interest and similar income + Net fee income from financial services + Other income Total revenues + Income from insurance results (Salaries and employee benefits + Administrative expenses + Depreciation and amortization) / (Net Efficiency ratio interest and simila
Slide 52: 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 IFS’ busin
Slide 53: [J Intercorp
[J Intercorp Financial rVviC