Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q2 2016 Earnings Presentation
27 slides from Intercorp Financial Services's earnings presentation, 2016
Slide 1: Intercorp Financial Services Second Quarter 2016 Earnings Presentation
Intercorp Financial Services Second Quarter 2016 Earnings Presentation
Slide 2: Highlights 2Q16
Highlights 2Q16 IFRS 2Q16 net profit was S/ 178.0 million, an almost three-fold growth QoQ but a 48.6% reduction YoY Intercorp The QoQ performance was explained by a lower, yet negative, discount rate impact on technical reserves for annuities, and by a recovery in results from investments at In
Slide 3: Excluding extraordinary items, IFS 2Q16 net profit increased 10.6% QoQ and 9.7% YoY
Excluding extraordinary items, IFS 2Q16 net profit increased 10.6% QoQ and 9.7% YoY IFRS Intercorp Financial Services' Profit by segment S/ million %chg %chg 2Q15 1Q16 2Q16 QoQ YoY Interbank 201.0 201.8 199.8 -1.0% -0.6% Interseguro 117.2 -136.9 -55.8 -59.2% n.m. Negative impact from investments 18.
Slide 4: IFS key indicators 2Q16
IFS key indicators 2Q16 IFRS Intercorp Financial Services' key indicators S/ million 2Q15 1Q16 2Q16 %chg QoQ %chg YoY Net interest and similar income 599.1 643.9 645.8 0.3% 7.8% Fee income from financial services, net 194.0 206.6 215.4 4.3% 11.1% Results Profit for the period 346.4 60.7 178.0 193.4%
Slide 5: IFS 2Q16 net profit increased 193.4% QoQ
IFS 2Q16 net profit increased 193.4% QoQ IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 24.6% 21.9% 21.3% ROAE 38.2% 20.5% 38.1% -0.6% +7.3% 54 50 30 201 202 200 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 Interseguro IFS Net profit in S/ million Net profit in S/ million ROAE 95.4%
Slide 6: Interbank
CJ Intercorp Financial Services
Slide 7: Interbank's profits relatively stable QoQ and YoY mainly due to lower gains on foreign exchange transactions
Interbank’s profits relatively stable QoQ and YoY mainly due to lower gains on foreign exchange transactions IFRS Banking Segment's P&L Statement S/ million %chg %chg 2Q15 1Q16 2Q16 QoQ YoY Interest and similar income 732.8 792.4 819.2 3.4% 11.8% Interest and similar expenses -203.8 -243.0 -250.5 3.
Slide 8: Performing loans grew 1.8% QoQ and 8.1% YoY
Performing loans grew 1.8% QoQ and 8.1% YoY Performing loans Breakdown of loans S/ million S/ million %chg %chg 2Q15 1Q16 2Q16 QoQ YoY +8.1% Consumer loans: Credit cards 3,632.7 3,671.8 3,805.1 3.6% 4.7% +7.1% Other consumer 3,924.4 4,292.4 4,417.7 2.9% 12.6% Total consumer loans 7,557.2 7,964.2 8,2
Slide 9: Interbank's retail deposits increased 1.7% QoQ and 13.4% YoY
Interbank’s retail deposits increased 1.7% QoQ and 13.4% YoY Funding structure Funding breakdown S/ million %chg %chg S/ million 2Q15 1Q16 2Q16 QoQ YoY Gross Loans Deposits 112.3% 99.9% 110.8% Deposits* 21,061.9 25,268.7 23,240.9 -8.0% 10.3% Retail 9,625.6 10,733.4 10,915.2 1.7% 13.4% +8.2% Commerci
Slide 10: Total PDL ratio remained below system's average in 2Q16
Total PDL ratio remained below system’s average in 2Q16 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 178.3% 186.4% 175.4% Ratio 2.7% 2.7% 2.9% 2.3% 2.3% 2.1% 2.8% 2.8% 3.1% 2.4% 2.5% 2.7% 2Q15 1Q16 2Q16 IBK 2Q15 1Q16
Slide 11: 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 63.2% 68.8% 80.6% 85.0% 54.3% 60.3% 13.0% 9.3% 31.7% 26.2% 52.1% 45.5% 87.0% 90.7% 68.3% 73.8% 47.9% 54.5% 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 Retail loans breakdown Commercial loans bre
Slide 12: Fee income increased 12.4% YoY and efficiency ratio remained stable YoY
Fee income increased 12.4% YoY and efficiency ratio remained stable YoY Fee income Operating expenses S/ million S/ million 350 .0 30.0% 500 .0 23.0% 300 .0 22.8% 50.0% 25.0% 21.1% 450 .0 41.7% 41.2% 41.7% 250 .0 400 .0 40.0% 20.0% 350 .0 200 .0 300 .0 30.0% 15.0% 250 .0 150 .0 200 .0 10.0% 20.0% 33
Slide 13: 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 14.3% 14.2% 14.2% 14.7% 14.6% 20.00% 16.5% 16.4% 16.2% 15.6% 15.5% 15.00% 5.8% 5.4% 5.3% 5.5% 5.6% +1.7% +1.8% +1.7% +1.8% Additional Regulatory Capital +1.6% Requirement 10.00% 10.0% Total Regulatory Minimum
Slide 14: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 15: Interseguro's results in 2Q16 were negatively affected by discount rate impacts on technical reserves
Interseguro’s results in 2Q16 were negatively affected by discount rate impacts on technical reserves and impairments Insurance Segment's P&L Statement S/ million %chg %chg 2Q15 1Q16 2Q16 QoQ YoY Net Interest and similar income 64.9 69.7 68.3 -2.0% 5.2% Fee income from financial services, net -1.1 -
Slide 16: 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 (2Q16) S/ million S/ million 117 93 25 -1 -48 -55 28 -88 -57 33 -136 33-119 2Q15 1Q16 2Q16 -69 -57 Adjustment of technical reserves resulting from changes in discount rate -16 2 -2 1 Net profit
Slide 17: Net premiums decreased QoQ and YoY as a result of the new regulatory environment in annuities
Net premiums decreased QoQ and YoY as a result of the new regulatory environment in annuities Net premiums Adjustment of technical reserves S/ million S/ million Annuities 25.9% 24.7% 23.1% Negative -93 88 55 market share discount rate impact 180 177 228 130 6 43 48 135 9 11 1 47 223 5 127 118 12 56
Slide 18: Interseguro's investment portfolio grew 4.3% QoQ and 12.3% YoY
Interseguro’s investment portfolio grew 4.3% QoQ and 12.3% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 8.0% 2.4% 5.1% +12.3% 5,329 94 31 67 5,111 4,747 730 9 729 16 11 49 724 451 508 435 85 70 68 -1 -18 -16 -22 -58 3,874 4,148 3,587 2Q15 1Q16 2Q16 Fixed Income Rea
Slide 19: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 20: Inteligo's net profit increased 76.7% QoQ and 7.3% YoY
Inteligo’s net profit increased 76.7% QoQ and 7.3% YoY Wealth Management Segment's P&L Statement S/ million %chg %chg 2Q15 1Q16 2Q16 QoQ YoY Interest and similar income 35.9 37.8 41.2 9.1% 14.9% Interest and similar expenses -12.8 -13.2 -14.2 7.5% 11.2% Net interest and similar income 23.1 24.6 27.0
Slide 21: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million +15.1% +1.3% 13,376 13,794 1,681 11,980 1,600 1,620 2,579 2,915 2,348 9,632 10,797 10,879 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 Deposits AUM Revenues Net profit S/ million S/ million Fee (1) 1.3% 0.9% 1.0% ROAE 38.2% 20.5% 38.1% AUMs +3.5%
Slide 22: Summary
CJ Intercorp Financial Services
Slide 23: 2Q16 Takeaways
2Q16 Takeaways Interbank Slower growth given current market environment Credit cards and commercial loans resumed growth QoQ, leading to a 20 bps gain in market share of total loans 13.4% YoY growth in retail deposits NIM improved by 50 bps QoQ to 6.0% Dollar exposure within the loan boo
Slide 24: Appendix
Appendix CJ Intercorp Financial Services
Slide 25: IFS 2Q16 P&L
IFS 2Q16 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 2Q15 1Q16 2Q16 QoQ YoY Interest and similar income 817.1 903.7 914.2 1.2% 11.9% Interest and similar expense -218.0 -259.7 -268.4 3.3% 23.1% Net interest and similar income 599.1 643.9 645.8 0.3% 7.8% Provision for lo
Slide 26: 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 (2Q16) S/ million S/ million -0.6% 201 202 200 2Q15 1Q16 2Q16 Net profit – Local GAAP S/ million -0.6% (1) 207 220 205 2Q15 1Q16 2Q16 (1) Includes taxes (S/ +1.8 million), administrative expenses &
Slide 27: Interseguro's 2Q16 net profit bridge to IFRS
Interseguro’s 2Q16 net profit bridge to IFRS Local GAAP vs. IFRS S/ million Use of different discount rates and mortality tables to calculate technical reserves 27.6 Sale of RE Investment is Different stocks of recognized under SBS GAAP Assets and Liabilities in only, whereas under IFRS RE IFRS comp
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