Slide 1: Management Presentation June 2008
Management Presentation June 2008
Slide 2: Securities offering and distribution 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. Intergroup and its aff
Slide 3: Investment Highlights
Investment Highlights 1. Peru: Best Performing Economy in Latin America 2. Strong and Growing Financial System 3. Leading Franchise in Retail Banking and Annuities 4. Management Team With Deep Domestic and International Experience 5. Demonstrated Ability to Deliver Results Intergroup 3 Management Pr
Slide 4: Intergroup – A Leading Financial Services Company in Peru
Intergroup – A Leading Financial Services Company in Peru Others Float 73.1% 1.9% 1.0% 24.0% 97.0% 100.0% ` # 2 provider of consumer loans ` # 1 provider of annuities ` # 3 provider of credit card financing ` # 4 insurance company by total premiums ` # 4 bank by total loans and deposits ` Extensive
Slide 5: Intergroup – Financial Highlights
Intergroup – Financial Highlights Intergroup Financial Highlights (S/.million) 2004-2008 IQ 2006 2007 2008 IQ CAGR Total Assets 9,097 11,958 12,495 20.0% Total Loans (1) 4,118 6,059 6,051 23.4% Retail Loans (1) (2) 2,129 2,943 3,092 28.1% Total Deposits 5,761 7,261 7,726 19.1% Shareholder' Equity (3
Slide 6: 1. Peru: Best Performing Economy in Latin America
1. Peru: Best Performing Economy in Latin America Intergroup 6 Management Presentation
Slide 7: Sustained Economic Growth and Stability
Sustained Economic Growth and Stability Fastest Growing Economy Among Peers (%) Lowest Inflation in the Region (%) Average GDP Growth (2002-2006) 2007 GDP Growth Average Inflation (2002-2006) 2007 Inflation 11.5% 9.0% 7.8% 6.8% 5.8% 5.7% 5.3% 5.4% 5.2% 4.5% 4.6% 4.5% 4.4% 3.8% 3.9% 3.1% 3.0% 2.8% 2.
Slide 8: Improving Macroeconomic Conditions
Improving Macroeconomic Conditions Increasing Export Sector and Trade Balance Responsible Fiscal Policy Exports Trade Balance / GDP Fiscal Balance / GDP (%) 3.0% 30.2 2.1% 9.5% 27.9 1.8% 6.6% 4.3% 23.8 1.4% 7.7% 7.0% 0.5% 17.3 12.8 9.1 7.7 2002 2003 2004 2005 2006 2007 2008E -0.3% -1.0% -1.7% 2002 2
Slide 9: 2. Strong and Growing Financial System
2. Strong and Growing Financial System 10 Intergroup 9 Management Presentation
Slide 10: Strong Fundamentals Driving Profitable Growth in Banking
Strong Fundamentals Driving Profitable Growth in Banking Performing Loans (S/. billion) ROAE (%) (2) 2001-2008 IQ Retail Loans (1) Other Loans CAGR 27.9% 28.2% 65.8 65.5 12.8% 22.7% 21.5% 49.6 42.1 68.6% 67.8% 10.0% 32.9 32.0 33.5 67.3% 30.8 10.8% 11.6% 68.0% 69.1% 8.5% 77.0% 72.1% 79.3% 4.4% 32.7%
Slide 11: Growing and Profitable Insurance Sector
Growing and Profitable Insurance Sector Total Assets (S/. million) Total Premiums (S/. million) ROE (%) (1) 2001-2008 IQ Annuities CAGR 10,970 Other Life Insurance 10,812 Non-Life Premiums 2001-2008 IQ CAGR 3,825 16.0% 3,712 9,821 3,544 612 21.1% 8,788 3,215 3,035 3,016 23.7% 7,161 1,060 22.84% 21.9
Slide 12: Underpenetrated Banking and Insurance Sectors
Underpenetrated Banking and Insurance Sectors Retail Loan Penetration (1) Credit Cards / Inhabitant Mortgage Loans / GDP (%) Consumer Loans / GDP (%) 52.9% 4.2 34.1% 18.9% 15.3% 13.4% 14.3% 1.1 1.0 0.9 9.0% 8.1% 0.5 4.2% 4.1% 0.3 2.0% 2.4% 1.6% 2.6% 2.3% 2.7% 0.2 0.1 Spain U.S. Brazil Chile Colombia
Slide 13: 3. Leading Franchise in Retail Banking and Annuities
3. Leading Franchise in Retail Banking and Annuities
Slide 14: Strategic Focus on Retail Banking and Annuities
Strategic Focus on Retail Banking and Annuities Asset Individual Retail / Commercial Capital Disability Retail Banking Management Annuities Life Mandatory Traffic Banking Markets Insurance and Other Insurance Insurance 51% of Loans(1) 49% of Loans(1) 65% of 4% of 21% of 10% of 70% of Financial 29% o
Slide 15: Clear and Consistent Strategy
Clear and Consistent Strategy Elements of Our Strategy Key Objectives ` Expand distribution network: double number of 9 Convenience •Access financial stores and ATMs from 2006 to 2008 ` Continue developing electronic banking and •Agility alternative distribution channels ` Maintain leadership in ann
Slide 16: Interbank: Evolving Focus From Commercial to Retail
Interbank: Evolving Focus From Commercial to Retail S/. million CAGR IBK System Retail Commercial 6,059 6,051 18.1% 12.8% 51.4% 48.9% 10.2% 10.0% 4,118 3,744 3,057 2,870 48.3% 2,625 53.1% 2,138 54.8% 32.7% 21.2% 60.6% 68.7% 48.6% 51.1% 75.3% 51.7% 46.9% 45.2% 39.4% 31.3% 24.7% 2001 2002 2003 2004 20
Slide 17: Interbank: Leading Player in Consumer Banking
Interbank: Leading Player in Consumer Banking Consumer Loans (S/. million) Retail Credit Card Loans (S/. million) 2,276 909 2,123 % 849 .0 % 29 .0 em 33 t ys m S te . 717 vs ys .S % 1,587 .2 vs 32 % R AG .2 48 C 552 1,278 R G A C 1,018 414 836 326 629 216 398 78 2001 2002 2003 2004 2005 2006 2007 20
Slide 18: Interseguro: Leading Franchise in Annuities and Life Insurance
Interseguro: Leading Franchise in Annuities and Life Insurance Annuities (S/. million) Life Premiums (S/. million) 285 251 267 270 235 206 218 196 168 133 65 64 51 54 54 46 32 34 2001 2002 2003 2004 2005 2006 2007 2007 2008 2001 2002 2003 2004 2005 2006 2007 2007 2008 IQ IQ IQ IQ Market 27.6% 22.4%
Slide 19: 4. Management Team With Deep Domestic and International Experience
4. Management Team With Deep Domestic and International Experience
Slide 20: Experienced and Recognized Management Team
Experienced and Recognized Management Team Experience Name Position International Years in Sector Carlos Rodriguez-Pastor Chairman Intergroup and Interbank 9 25 Jorge Flores CEO Intergroup and Interbank 9 25 Juan Carlos Vallejo CEO Interseguro 9 19 Jose Antonio Rosas CFO Intergroup 9 2 Juan D’Auriol
Slide 21: Strong Corporate Governance
Strong Corporate Governance ` Intergroup: 5 members (3 independent) Board of Directors ` Interbank: 11 members (6 independent) ` Interseguro: 7 members (3 independent) ` Intergroup ` Audit Committee (3 board members) ` Interbank ` Executive Committee (4 board members and CEO of Interbank) Committees
Slide 22: 5. Demonstrated Ability to Deliver Results
5. Demonstrated Ability to Deliver Results Intergroup 22 Management Presentation
Slide 23: Strong Asset Growth
Strong Asset Growth Intergroup´s Total Assets Interbank´s Loan Portfolio Interseguro´s Assets (S/.million) (S/.million) (S/.million) Commercial Credit cards 12,495 Other consumer Mortgage 11,958 6,059 6,051 .0% 7.9 % 1,668 20 1,620 R .4% R 1 AG 23 821 816 CA G C GR 1,465 CA 9,097 1,284 1,274 1,367 4
Slide 24: Stable, Solid Funding
Stable, Solid Funding Funding Based on Core Deposits A Solid Capital Base Deposits Due to banks Other Regulatory capital / Risk - weighted assets 12.5% 12.1% 9,269 11.8% 8,841 11.2% 6.0% 4.5% 3.5% 3.4% 2.3% 10.0% 1.3% 14.5% 15.5% 1.4% 6,462 7.4% 5,405 5.1% 5,078 7.5% 5.7% 7.4% 7.3% 79.6% 9.5% 9.9% 8
Slide 25: Net Interest Margin Consistently Higher than the Industry's Average
Net Interest Margin Consistently Higher than the Industry's Average Net Interest Margin (%) 8.2% 8.1% 8.1% 7.9% 7.8% Interbank 6.9% 6.7% 6.5% 6.5% Peruvian Banking System 5.8% 2004 2005 2006 2007 2008 IQ Source: ASBANC Intergroup 25 Management Presentation
Slide 26: Consistent Revenue Growth
Consistent Revenue Growth Gross Financial Margin Fee Income From Financial Services S/. million S/. million 894 259 % 17.7 R .8% CA G 24 214 R AG 696 C 191 555 159 459 R1 5 .6 % CAG .8% R 13 C AG 250 62 216 54 2004 2005 2006 2007 2007 IQ 2008 IQ 2004 2005 2006 2007 2007 IQ 2008 IQ Intergroup 26 Mana
Slide 27: Strengthening Asset Quality
Strengthening Asset Quality PDL & Coverage Ratios Loan Provision Expense S/. million S/. million 337.0% 330.1% % loans 7.50% 235.4% 300% 176.1% 180 3.3% 3.0% 2.6% 2.5% 2.6% 151.7% 6.50% 200% 2.3% 160 2.00% 5.50% 100%140 4.9% 127 125 0.00% 119 116 4.50% 0% 120 -2.00% 100 3.50% -100% 2.9% 80 -4.00% 2.
Slide 28: Expanding Network, Improving Efficiency
Expanding Network, Improving Efficiency Interbank’s Distribution Network Intergroup’s Operating Expenses Units S/. million Efficiency 100 1,010 1,025 ratio* 170 57.3% 54.7% 720 51.2% ATMs 50.9% 900 164 53.9% 161 620 586 51.6% 701 150 40.0% 700 520 465 20.0% 479 497 130 420 408 Branches 354 500 320 0
Slide 29: Significant Growth in Revenues and Earnings
Significant Growth in Revenues and Earnings Net Income - Interbank Net Income - Interseguro Net Income* - Intergroup ROE S/. million ROE S/. million ROE S/. million 1 00 46,3% 31,8% 2 8 0 41,2% 3 8 0 4 0 ,0 % 36,3% 27,4% 31,3% 22,1% 23,3% 3 0 ,0 % 34,1% 4 0,0% 27,8% 26,0% 33,1% 9 0 3 0 ,0 % 13,5% 3
Slide 30: Key Takeaways
Key Takeaways Peru: Best Performing Economy in Latin America Strong and Growing Financial System Proven Track Record and Focused Strategy Leading Franchise in Retail Banking and Annuities Management Team With Deep Domestic and International Experience Demonstrated Ability to Deliver Results Intergro
Slide 31: Py | In terban\, yy
Py | In terban\, yy i ' | ere f e% | | tt is] Intergroup financial services Lb per al —— 4 \ 4 \ \ \ \ \ \ \