23 slides from Intercorp Financial Services's investor presentation, October 2012
Slide 1: Management Presentation October 2012
Management Presentation October 2012
Slide 2: Disclaimer
Disclaimer This presentation is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission, or an exemption from registration. Intercorp F
Slide 3: Investment highlights
Investment highlights Strong economic Peru is an economic success with outstanding macroeconomic performance and financial The Peruvian financial system is strong and has solid performance indicators system Banking and insurance industries with high growth potential Leading retail bank and annuities
Slide 4: IFS – A leading financial services company in Peru
IFS – A leading financial services company in Peru 68.93% (1) 100.00% Other Investments 99.29% 100.00% # 1 private bank in payroll loans to public # 1 provider of annuities sector employees # 4 in life insurance premiums # 2 provider of credit card financing # 7 insurance company by total premiums #
Slide 5: IFS financial highlights
IFS financial highlights Selected financial information (S/. million) June 2007 to 2Q12 2009 2010 2011 2012 CAGR Total assets 18,250 21,881 22,712 25,950 18.8% Total loans (1) 9,950 12,085 14,125 14,487 21.4% Retail loans (2) 4,877 5,828 7,043 7,534 23.2% Total deposits 11,521 11,967 13,113 15,322 1
Slide 6: 1. Strong economic and financial system
1. Strong economic and financial system 6
Slide 7: Peru is an economic success…
Peru is an economic success… Impressive economic growth Low inflation environment Real GDP Growth Inflation 07-11 Average annual growth rate 07-11 Average annual inflation rate 2012E (1) 2012E (1) 10.0% 6.5% 8.8% 5.8% 6.4% 4.9% 3.8% 4.6% 5.6% 5.0% 3.3% 3.8% 3.7% 4.6% 3.7% 4.1% 3.4% 3.4% 3.1% 3.2% 2.
Slide 8: …with strong macroeconomic fundamentals
…with strong macroeconomic fundamentals Responsible fiscal policy Solid reserve position Budget Balance (% GDP) Net International Reserves (% GDP) (1) 27.9% 2.9% 2.4% 2.3% 1.9% 16.9% 1.1% 14.1% 12.9% 9.7% -0.3% -0.3% -1.1% -1.3% 2004 2005 2006 2007 2008 2009 2010 2011 2012E Peru Chile Brazil Mexico
Slide 9: The banking system has experienced profitable, solid growth…
The banking system has experienced profitable, solid growth… Performing loans (S/. billion) (1) ROE (%) (1) Commercial 2007-2012 2Q Net income (S/. million) Retail CAGR ROE (%) 136.2 17.5% 31.3% 128.2 28.2% 24.3% 24.4% 24.7% 24.3% 109.1 23.2% 89.9 91.6 65.9% 16.5% 67.0% 65.9 68.6% 69.6% 68.2% 68.6%
Slide 10: …and has significant growth potential
…and has significant growth potential Banking penetration (1) Retail loan penetration (1) Deposits / GDP (%) Mortgage loans / GDP (%) Consumer loans / GDP (%) 60% 26% 37% 18% 30% 27% 24% 17% 4% 12% 9% 8% 2% 14% 10% 4% 2% 9% 5% 6% Chile Brazil Colombia Peru Argentina Chile Brazil Colombia Peru Argent
Slide 11: High growth potential also in the insurance industry
High growth potential also in the insurance industry Total assets (S/. million) Life insurance premiums in Peru (S/. million) Annuities Individual life Group life Pension 3,456 3,159 19,786 21,009 17% 13% 17,358 14,137 2,054 23% 12,753 1,832 29% 1,703 1,778 10,970 1,597 17% 18% 15% 16% 18% 12% 20% 2
Slide 12: 2. Leading franchise in financial services
2. Leading franchise in financial services 12
Slide 13: IFS: strategic focus on retail banking and annuities
IFS: strategic focus on retail banking and annuities Commercial Life Insurance Retail Banking Capital Markets Annuities Non-life Insurance Banking 72% of 19% of 9% of 52% of Loans (1) 48% of Loans (1) Interfondos Premiums Premiums Premiums 72% of Financial 28% of Financial AUM: S/. 2.3 billion incom
Slide 14: A clear and consistent strategy
A clear and consistent strategy Convenience Unique value proposition Speed Service Professional management team with significant local and international experience Experienced management team & motivated Interbank is the only Peruvian company to be ranked one of the Top 20 workforce Best Companies t
Slide 15: Leading position in retail banking and annuities
Leading position in retail banking and annuities Consumer loans market share (1) Credit cards market share (1) 2007 2007 2012 2Q 2012 2Q 24.1% 19.5% 19.4% 18.3% 17.6% 16.8% 21.0% 20.2% 20.6% 15.6% 18.6% 17.9% 11.9% 15.3% 9.3% 7.3% (2) (2) BCP Interbank Scotiabank BBVA BCP Interbank Scotiabank BBVA N
Slide 16: 3. Demonstrated ability to deliver results
3. Demonstrated ability to deliver results 16
Slide 17: Significant asset growth
Significant asset growth IFS total assets Interbank’s performing loans Interseguro’s investment portfolio Loans, net Investments Commercial Credit cards Fixed Income Equity and Mutual Funds 7 ,00 0 Cash and due to banks Others Other consumer Mortgages Real Estate Others S/. million S/. million S/. m
Slide 18: Strong asset quality
Strong asset quality PDL & Coverage ratios - Interbank Loan Provision Expense - Interbank PDL ratio Provision expense (S/. million) Coverage ratio (1) Provisions / average loans 337.0% 283.1% 266.6% 269.1% 274.1% 600 0. 05 243.5% 3.7% 3.5% 3.1% 3.0% 3.4% 2.8% 520 2.5% System: 225.6% 440 402 391 363
Slide 19: Stable funding and responsible capital management
Stable funding and responsible capital management Funding mix - Interbank BIS ratio - Interbank Tier II Deposits and obligations Lines of credit Tier I Long term loans Bonds Inter-bank funds 20,453 14.8% 14.4% 11% 13.7% 17,184 17,499 10% 3.4% 12% 11.5% 4% 14,305 13% 5% 10.8% 4.7% 3.2% 11% 10.3% Tota
Slide 20: Consistent and strong revenue growth with improvements in efficiency
Consistent and strong revenue growth with improvements in efficiency Operating revenues - IFS (S/. million) Operating expenses - IFS (S/. million) Gross financial margin Total premiums Fee income NIM Interbank Efficiency ratio* 8.9% 8.6% 7.9% 7.5% 7.5% 7.6% 50.5% 7.3% 1600 44.8% 43.9% 50.00% 41.4% 3
Slide 21: Significant growth in net income
Significant growth in net income Net income* - IFS Net income - Interbank Net income - Interseguro S/. million ROE S/. milllion ROE S/. million ROE 37.1% 31.9% 31.3% 33.8% 94.0% 32.1% 34.0% 31.7% 34.4% 31.3% 26.9% 26.2% 29.8% 28.8% 18.3% 56.7% 698 41.2% 38.6% 31.6% 28.0% 541 3.2% 507 499 498 429 403
Slide 22: Investment highlights
Investment highlights Strong economic Peru is an economic success with outstanding macroeconomic performance and financial The Peruvian financial system is strong and has solid performance indicators system Banking and insurance industries with high growth potential Leading retail bank and annuities
Slide 23: Slide 23