Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q4 2021 Earnings Presentation
60 slides from Intercorp Financial Services's earnings presentation, 2022
Slide 1: Earnings Presentation 4Q21 & FY21 Results
Earnings Presentation 4Q21 & FY21 Results
Slide 2: Agenda
Agenda Financial highlights Key messages Takeaways Results by segment
Slide 3: Agenda
Agenda Financial highlights Key messages Takeaways Results by segment
Slide 4: Record earnings in 2021, IFS' ROAE at 19.3%
Record earnings in 2021, IFS’ ROAE at 19.3% Intercorp Financial Services Banking Net profit in S/ million Net profit in S/ million ROAE 17.5% 23.1% 10.9% 4.5% 19.3% ROAE 12.8% 18.6% 27.8% n.m. 21.0% -30.0% S/ 1,503 mm >2x S/ 258 mm S/ 1,151 mm & ROAE 16.3% & ROAE 15.5% & ROAE 17.9% 552 1,800 excl. o
Slide 5: Highlights
Highlights Profitability recovers on higher revenues and lower provisions, FY21 ROAE at 21.0% and 4Q21 at 27.8% • Consumer loans grew 15% YoY, gaining 60 bps in market share • 10% growth in retail deposits, market share at 15% Banking • Risk-adjusted NIM recovering, contribution of consumer loans st
Slide 6: IFS key indicators
IFS key indicators Intercorp Financial Services Business segments 23.1% 19.3% 4.3% 4.4% 4.6% 17.5% 10.9% 4.0% 4.0% ROAE 4.5% NIM 4Q20 3Q21 4Q21 2020 2021 4Q20 3Q21 4Q21 2020 2021 2.4% 2.0% 1.9%(1) 1.6%(1) 3.1% 6.1% 1.7% 1.2% Cost of 1.1% ROAA 0.5% 0.9% risk n.m. 4Q20 3Q21 4Q21 2020 2021 4Q20 3Q21 4Q
Slide 7: Strong results in 2021
Strong results in 2021 Capital Profitability Loan growth 2021E 2021 2021E 2021 Slow recovery in retail, IBK TCR >15% 15.9% Orig. Rev. decreasing volumes in commercial IFS ROAE >14% >18% 19.3%(1) IBK CET1 >11% 12.5% Retail +13.6% Commercial -4.3% / +7.9%(2) Revenues Cost of risk Efficiency 2021E 2021
Slide 8: Relevant net income of S/ 1,657 million in 2021
Relevant net income of S/ 1,657 million in 2021, similar to 2019 levels Local GAAP & IFRS Interbank – Local GAAP Interseguro – Local GAAP Inteligo – IFRS Net profit in S/ million Net profit in S/ million Net profit in S/ million ROAE 22.0% 4.3% 19.1% 31.9% 18.0% 19.9% 24.7% 28.0% 23.0% 1,222 1,201 4
Slide 9: Solid capital ratios at all IFS' segments
Solid capital ratios at all IFS’ segments 165.7% 155.7% 152.8% Banking System 15.4% 15.1% 14.9% 100.0% regulatory TCR minimum 17.0% 16.3% 15.9% 4Q20 3Q21 4Q21 12.5% 12.0% 11.5% Solvency ratio 9.0% 17.0% 16.3% 15.9% regulatory minimum 28.4% 23.9% 24.4% 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 8.0% Total capital
Slide 10: Agenda
Agenda Financial highlights Key messages Takeaways Results by segment
Slide 11: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at IFS expected to continue in 2022
Slide 12: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at IFS expected to continue in 2022
Slide 13: Strong recovery in core indicators
Strong recovery in core indicators 1 Interbank Credit cards turnover Credit card sales Mortgage disbursements S/ billion Thousand units S/ billion +21% -8% +33% 10.4 2.7 8.6 287.7 266.0 2.0 6.6 1.6 114.8 2019 2020 2021 2019 2020 2021 2019 2020 2021 Debit cards turnover Consumer loans disbursements P
Slide 14: Consumer loans grew 15% YoY, gaining 60 bps in market share
Consumer loans grew 15% YoY, gaining 60 bps 1 in market share Interbank Performing loans Breakdown of loans S/ million S/ million %chg %chg System’s growth(1) +4% 4Q20 3Q21 4Q21 QoQ YoY Consumer loans +7% Credit cards & other loans 6,135.7 6,577.6 7,471.8 13.6% 21.8% Payroll deduction loans(2) 4,318
Slide 15: 10% growth in retail deposits, market share at 15%
10% growth in retail deposits, market share at 15% 1 Interbank Funding structure Funding breakdown S/ million S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY LDR(2) 93% 90% 96% Deposits 44,576.8 46,565.6 44,966.3 -3.4% 0.9% Retail 20,810.5 23,290.7 22,911.8 -1.6% 10.1% System’s Commercial(1) 23,766.3 23
Slide 16: Premiums grew more than 70% YoY
Premiums grew more than 70% YoY, strong 1 performance across all business lines Interseguro Gross premiums plus collections – Quarterly evolution Gross premiums plus collections – Annual evolution S/ million S/ million Annuities Annuities market 28% 29% 36%(2) market 28% 31%(2) share(1) share(1) +77
Slide 17: AUM & Deposits grew 14% YoY
AUM & Deposits grew 14% YoY 1 Inteligo AUM & Deposits Loans Inteligo Bank - customers S/ million S/ million Number of customers +14% +2% +29% 4,280 28,304 1,753 27,153 1,661 1,698 23,844 3,313 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 2020 2021 16
Slide 18: Recovery in operating activity resulted in 8% YoY growth in revenues
Recovery in operating activity resulted in 8% YoY 1 growth in revenues Intercorp Financial Services Banking S/ million S/ million NIM 4.3% 4.1% 4.3% 4.5% 4.1% 4.3% 4.0% 4.4% 4.6% 4.0% -18.1% S/ -116 mm +5.0% impact of IFS standalone 1,514 1,622 +8% 5,922 1,003 964 1,054 3,847 +3% 3,974 1,239 5,488 1
Slide 19: Expense growth driven by banking activity and digital investments
Expense growth driven by banking activity 1 and digital investments, IFS’ efficiency at 35% Efficiency ratio Interbank – Expense bridge from 2020 to 2021 % YoY growth by line (S/ million) +16.2% +4.1% +82.1% +16.5% +16.6% +95 +86 +49 +24 42.7% 38.6% 32.2% 34.7% 33.3% 31.6% 1,788 1,534 11.0% 12.2% 20
Slide 20: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at IFS expected to continue in 2022
Slide 21: Healthy asset quality, 0.9% CoR
Healthy asset quality, 0.9% CoR (1.6% excluding 2 reversal of COVID-19 provisions) Interbank - Cost of risk (1) Interbank – Non performing exposure NPL 118% 182% 131% coverage ratio 4.5% 6.1% 12.3% 9.0% 9.1% 1.9%(1) 1.6%(1) 2.2% 3.6% 3.0% 3.2% 1.1% 0.9% n.m. 4Q20 3Q21 4Q21 2019 2020 2021 4Q20 3Q21 4
Slide 22: Risk-adjusted NIM recovering
Risk-adjusted NIM recovering, contribution of 2 consumer loans still below pre COVID-19 levels Yield on loans after provisions NIM after provisions 8.4% 10.9% 5.6% 8.3% 9.0% 4.3% 4.4% Yield 7.9% 7.9% 4.0% 4.6% 4.0% NIM on loans 6.8% 8.7% 6.5%(1) 3.3% 4.1% 7.0% 3.2%(1) 5.3% 3.4% 2.4% 3.0% 0.6% 4Q20 3
Slide 23: Rescheduled loans decreased 50% from peak
2 Rescheduled loans decreased 50% from peak Interbank – Loan rescheduling Interbank – Retail loans rescheduling S/ billion S/ billion Clients 332 441 252 (Thousand) Clients 343 459 262 Rescheduled 34% 43% (Thousand) 21% balance (%) -48% Dec21/Jun20 Rescheduled 8.6 30% 31% 15% 6.9 balance (%) 4.5 12.
Slide 24: Reactiva Peru loan balances down 26% YoY
2 Reactiva Peru loan balances down 26% YoY Reactiva Peru loan balances by segment S/ million, Local GAAP -26% 4Q21 2021 Segment 6,617 %chg YoY Rescheduled 110 573 5,510 94 Corporate -53% 6% 338 4,929 85 272 3,807 Mid-sized -26% 35% 3,050 2,808 SME -17% 53% 2,126 2,028 1,764 Total -26% 40% 4Q20 3Q21
Slide 25: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at IFS expected to continue in 2022
Slide 26: "Two-tier" digital strategy to foster growth
“Two-tier” digital strategy to foster growth 3 1. Digitalization +26 NPS 100% digital customers 2. New growth vs. non-digital customers 100% digital services points Payments | Neobank | Open Banking Consolidating growth Piggy bank My Finances Rewards program 100% digital Digital wallet P2P & QR code
Slide 27: Strong progress in our digital indicators
Strong progress in our digital indicators 3 1. Digitalization 100% digital services IBK - Digital users IBK - 100% digital customers IBK – Digital sales % of digital users 100% digital customers % of products sold digitally 80% 58% 59% 56% 75% 50% 42% 63% 32% Dec19 Dec20 Dec21 Dec19 Dec20 Dec21 Dec1
Slide 28: Tunki, our ally to bank the unbanked
Tunki, our ally to bank the unbanked 3 2. New growth Tunki 1st digital wallet delivering Government’s financial aid Users Micromerchants Transactions Million Thousand 1.6 314 7x 1.7MM Transactions 0.8 (Jan22) (2021 vs. 2020) 17 2020 2021 2020 2021 2x Users 19x Micromerchants 27
Slide 29: Plin, 6 million users in 2 years
Plin, 6 million users in 2 years 3 2. New growth Plin Users(1) IBK - Micromerchants Million Thousand IBK’s MS 39% 42% 568 5.7 6MM 2.6 (Jan22) 190 (2) 2020 2021 2020 2021 Daniel Jiménez Talledo 2x Users 3x Micromerchants Transactions(1) Partners 4x Transactions (2021 vs. 2020) 28 1) Figures including
Slide 30: Rappibank, a new way of banking
Rappibank, a new way of banking 3 2. New growth - at early stage Rappibank Accounts Credit cards NPS Thousand Thousand 55 209 24 223K (Jan22) - 67K (Jan22) 65 points NPS (Dic-21) 2020 2021 2020 2021 Launch date: Feb21 Launch date: May21 29
Slide 31: Shopstar, preferred e-commerce platform for IFS customers
Shopstar, preferred e-commerce platform for IFS customers 3 2. New growth - at early stage Shopstar 15% of miles redeemed Users GMV(1) Share of wallet Thousand S/ million % 68 63 11% 8 6 1% 2020 2021 2020 2021 2020 2021 8x Users 10x GMV(1) 1st E-commerce for IBK’s customers 30 1) Gross merchandise v
Slide 32: Our two-tier digital strategy allowed us to grow our customer base ~20%
Our “two-tier” digital strategy allowed us to grow our customer base ~20% 3 IBK - Retail customers IBK - 100% digital customers IBK - Commercial customers Million Million Thousand 4.6 3.9 1.6 127 3.4 103 1.3 71 0.6 2019 2020 2021 2019 2020 2021 2019 2020 2021 +13% +18% +2x +20% +44% +24% (2020) (202
Slide 33: Key messages
Key messages 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at IFS expected to continue in 2022
Slide 34: Underlying macro trends in 2022
Underlying macro trends in 2022 4 GDP LTM Inflation (%Chg YoY) (%Chg YoY) 13.2% 13.2% 12.0% 6.4 CPI %Chg YoY 5.7 6.4% 5.2 2021 6.43 3.3 2.7 2.6 -9.2% TB 3.4% 2022E 2.90 -11.3% U Jan21 Mar21 Jun21 Sep21 Dec21(E) 2021(E) 2022(E) Jan21 Mar21 Jun21 Sep21 Dec21 Jan22 Peru vs. LatAm peers Interest rates (
Slide 35: IFS: operating trends 2022
IFS: operating trends 2022 4 Capital Profitability Loan growth 2022 2022 IBK TCR >15% High single digit growth in IFS ROAE >16% total loans led by double IBK CET1 >11% digit growth in consumer loans(1) To remain at sound levels Continued path to recovery Revenues Cost of risk Efficiency 2022 2022 20
Slide 36: Sustainability as a future competitive advantage
Sustainability as a future competitive advantage S&P Global Corporate Sustainability Assessment 2022 IFS ESG focus Objective Initiatives Microlending | Contextual 53 1 Promote inclusion payment solutions | Shared and bancarization value and volunteering CSA Score 2021 2 Environment and sustainable
Slide 37: Agenda
Agenda Financial highlights Key messages Takeaways Results by segment
Slide 38: Takeaways
Takeaways 1 2 Strong recovery in core indicators driving Healthy risk profile top line growth 3 “Two-tier” digital strategy to foster growth 4 Recovery at IFS expected to continue in 2022
Slide 39: Agenda
Agenda Financial highlights Key messages Takeaways Results by segment
Slide 40: Sequential improvement in NIM continues
Banking Sequential improvement in NIM continues Net interest and similar income Loan provision expense S/ million S/ million NIM 4.3% 4.0% 4.4% Cost of risk 3.1% 1.1% n.m. NIM after 2.4% 3.3% 4.9% provisions -8.2% 742 746 463 681 727 746 328 110 681 n.m. 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 Total fee and o
Slide 41: Manageable dollarization levels
Banking Manageable dollarization levels Total loans Retail loans Commercial loans % PEN 68% 74% 86% 92% 59% 66% System 9% 6% 27% 24% 48% 42% 91% 94% 73% 76% 52% 58% 2016 2021 2016 2021 2016 2021 Retail loans breakdown Commercial loans breakdown Consumer Mortgages Corporate Medium Small & Micro 94% 9
Slide 42: Investment portfolio increased 2.4% QoQ, ROIP at 4.7%
Investment portfolio increased 2.4% QoQ, ROIP Insurance at 4.7% Investment portfolio Results from investments(1) S/ million S/ million ROIP(2) 6.8% 6.6% 4.7% -5.5% Impact on investments: 4Q20: S/ +31 mm -33.2% 3Q21: S/ -8 mm 13,939 4Q21: S/ -28 mm 13,179 1,044 12,871 229 1,228 215 1,250 1,242 1,046
Slide 43: Net insurance underwriting loss decreased 76.7% QoQ and 77.2% YoY
Net insurance underwriting loss decreased Insurance 76.7% QoQ and 77.2% YoY Net premiums Adjustment of technical reserves S/ million S/ million 349 69 255 48 178 63 47 -53 55 38 232 -109 144 86 -152 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 Annuities Individual life Retail Insurance D&S Net claims and benefits
Slide 44: Negative M2M on investment portfolio offsets developments in NII and fees
Negative M2M on investment portfolio offsets Wealth Management developments in NII and fees Net interest and similar income Fees from financial services S/ million S/ million Fees / Avg. AUM(1) 0.8% 0.9% 0.8% -24.7% +18.8% 40 50 48 30 41 26 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 Other income Revenues S/ mill
Slide 45: Appendix
Cd Intercorp Financial Services Appendix
Slide 46: IFS' 4Q21 statement of financial position
IFS’ 4Q21 statement of financial position Intercorp Financial Services' Statement of financial position S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Assets Cash and due from banks and inter-bank 18,783.6 20,330.7 17,134.5 -15.7% -8.8% funds Financial investments 24,277.1 24,154.7 24,547.3 1.6% 1.1% L
Slide 47: IFS' FY21 P&L
IFS’ FY21 P&L Intercorp Financial Services' P&L statement S/ million %chg %chg 2019 2020 2021 21/20 20/19 Interest and similar income 4,847.2 4,665.0 4,605.6 -1.3% -3.8% Interest and similar expenses -1,424.0 -1,192.3 -1,057.9 -11.3% -16.3% Net interest and similar income 3,423.3 3,472.7 3,547.7 2.2
Slide 48: IFS' 4Q21 P&L
IFS’ 4Q21 P&L Intercorp Financial Services' P&L statement S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Interest and similar income 1,187.2 1,170.5 1,237.1 5.7% 4.2% Interest and similar expenses -266.5 -270.5 -290.7 7.5% 9.1% Net interest and similar income 920.7 900.0 946.3 5.2% 2.8% Impairment loss
Slide 49: Banking segment's 4Q21 statement of financial position
Banking segment’s 4Q21 statement of financial position Banking Segment' Statement of financial position S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Assets Cash and due from banks and inter-bank 17,720.5 17,433.8 14,420.8 -17.3% -18.6% funds Financial investments 8,966.3 9,337.6 10,062.2 7.8% 12.2% L
Slide 50: Banking segment's FY21 P&L
Banking segment’s FY21 P&L Banking Segment's P&L statement S/ million %chg %chg 2019 2020 2021 21/20 20/19 Interest and similar income 4,074.0 3,836.4 3,636.8 -5.2% -5.8% Interest and similar expenses -1,290.1 -1,053.4 -893.1 -15.2% -18.3% Net interest and similar income 2,783.9 2,783.1 2,743.7 -1.4
Slide 51: Banking segment's 4Q21 P&L
Banking segment’s 4Q21 P&L Banking Segment's P&L statement S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Interest and similar income 959.2 907.0 983.5 8.4% 2.5% Interest and similar expenses -231.9 -225.9 -237.9 5.3% 2.6% Net interest and similar income 727.3 681.1 745.6 9.5% 2.5% Impairment loss on l
Slide 52: Insurance segment's 4Q21 statement of financial position
Insurance segment’s 4Q21 statement of financial position Insurance Segment' Statement of financial position S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Assets Cash and due from banks and inter-bank 358.0 907.1 1,055.1 16.3% n.m. funds Financial investments 12,895.0 11,629.3 11,951.5 2.8% -7.3% Prope
Slide 53: Insurance segment's FY21 P&L
Insurance segment’s FY21 P&L Insurance Segment's P&L statement S/ million %chg %chg 2019 2020 2021 21/20 20/19 Interest and similar income 612.5 655.0 803.0 22.6% 6.9% Interest and similar expenses -72.5 -84.0 -117.5 39.9% 15.9% Net interest and similar income 540.1 571.0 685.4 20.0% 5.7% Recovery (
Slide 54: Insurance segment's 4Q21 P&L
Insurance segment’s 4Q21 P&L Insurance Segment's P&L statement S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Interest and similar income 176.0 224.8 211.9 -5.7% 20.4% Interest and similar expenses -22.7 -31.8 -40.6 27.4% 78.3% Net interest and similar income 153.2 193.0 171.3 -11.2% 11.8% Recovery (lo
Slide 55: Wealth management segment's 4Q21 statement of financial position
Wealth management segment’s 4Q21 statement of financial position Wealth Management Segment' Statement of financial position S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Assets Cash and due from banks and inter-bank 596.8 2,048.5 1,533.0 -25.2% n.m. funds Financial investments 1,881.0 2,474.3 2,314.3
Slide 56: Wealth management segment's FY21 P&L
Wealth management segment’s FY21 P&L Wealth Management's P&L statement S/ million %chg %chg 2019 2020 2021 21/20 20/19 Interest and similar income 168.0 163.4 154.3 -5.6% -2.7% Interest and similar expenses -61.5 -51.7 -39.8 -22.9% -16.0% Net interest and similar income 106.5 111.8 114.5 2.4% 4.9% I
Slide 57: Wealth management segment's 4Q21 P&L
Wealth management segment’s 4Q21 P&L Wealth Management's P&L statement S/ million %chg %chg 4Q20 3Q21 4Q21 QoQ YoY Interest and similar income 51.1 36.7 40.5 10.5% -20.7% Interest and similar expenses -10.8 -10.6 -10.1 -4.7% -5.9% Net interest and similar income 40.4 26.1 30.4 16.6% -24.7% Impairmen
Slide 58: Definitions
Definitions Concept Definition Net interest and similar income + Fee income from financial services + Other income + Net Total revenues premiums earned (Salaries and employee benefits + Administrative expenses + Depreciation and amortization) Efficiency ratio / (Net interest and similar income + Fee
Slide 59: 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
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Intercorp Financial Services — Q4 2021 Earnings Presentation on 6ix