Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
Slide 2: 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 3: IFS at a glance
Cd Intercorp Financial Services IFS ata glance
Slide 4: Leading financial services platform with solid balance sheet and diversified source of dividends
Leading financial services platform with solid balance sheet and diversified source of dividends Financial highlights Three operating segments 99.3% 99.8% 100.0% Universal bank with Insurance company Leading provider of As of Dic21 S/ mm | US$ mm strategic focus on with focus on life & wealth manage
Slide 5: 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$ 7.6bn Revenues in 2021 ~3.5% of Peru 2021 GDP Education Other (1) Source: Company information and BCRP. 4 1) Related companies excluding Aviva and Urbi.
Slide 6: Consistently delivering strong return to our shareholders
Consistently delivering strong return to our shareholders Dividends declared (1) (S/ mm) (S/ mm) Net profit (2) 875 902 1,040 1,222 265 1,201 Net profit (2) 86 104 361 436 257 304 Payout Ratio 45% 45% 45% 25% n.m. 50% Payout Ratio 50% 96% 68% 46% 78% 66% 245 600 200 200 202 406 467 394 302 100 43 n.
Slide 7: Solid capital ratios at all IFS' segments
Solid capital ratios at all IFS’ segments 165.7% 144.5% 152.8% Banking System 15.1% 15.1% 14.9% 100.0% regulatory TCR minimum 17.0% 15.9% 12.5% 2019 2020 2021 17.0% 11.6% 11.5% Solvency ratio 9.0% 17.0% 15.9% regulatory 15.2% minimum 28.4% 24.7% 24.4% 2019 2020 2021 2019 2020 2021 8.0% Total capital
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: Premiums grew more than 70% YoY, strong performance across all business lines
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 14: 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 13
Slide 15: 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 16: Expense growth driven by banking activity and digital investments, IFS' efficiency at 35%
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 17: 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 18: 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 19: Risk-adjusted NIM recovering, consumer loans contribution below pre COVID-19 levels
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 20: 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 21: 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 22: 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 23: "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 24: 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 25: 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 24
Slide 26: 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) 25 1) Figures including
Slide 27: 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 26
Slide 28: 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 27 1) Gross merchandise v
Slide 29: 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 30: 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 31: Underlying macro trends in 2022
Underlying macro trends in 2022 4 GDP LTM Inflation (%Chg YoY) (%Chg YoY) 13.3% 13.3% 12.0% 6.4 CPI %Chg YoY 6.2 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 2021 2022(E) Jan21 Mar21 Jun21 Sep21 Dec21 Feb22 Peru vs. LatAm peers Interest rates (Index;
Slide 32: 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 33: 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 34: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 35: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 36: Strategic focus on consumer loans
Strategic focus on consumer loans Interbank Distinctive loan breakdown… …when compared to the banking system Gross loans breakdown (as of December 2021) Gross loans breakdown (as of December 2021) Banking System Commercial Commercial 50.9% 68.1% Mortgages Mortgages 40.6% Consumer Consumer loans Reta
Slide 37: Solid risk management capabilities
Solid risk management capabilities Interbank Better asset quality than the system despite focus on retail Best total PDL ratio among peers PDL ratio evolution PDL ratio as of December 2021 Interbank System Commercial loans Retail loans Total loans 3.8% 3.8% Scotiabank Scotiabank 4.3% 3.0% Scotiabank
Slide 38: Diversified funding base with strength in retail deposits
Diversified funding base with strength in retail deposits Interbank Consistently gaining market share in deposits A growing retail deposit-gathering franchise Total deposits growth and market share Total retail deposits growth evolution MS 2016 12.8% MS 2021 15.0% 10.9% 12.6% 13.4% 14.3% 9.5% 10.9%
Slide 39: Key player in Peru's life insurance business
Key player in Peru’s life insurance business Interseguro Strategic focus on life insurance… … when compared to the insurance system Insurance premiums and collections breakdown (as of December 2021) Insurance premiums and collections breakdown (as of December 2021) Other life Insurance System Regula
Slide 40: Annuities leading recovery in premiums
Annuities leading recovery in premiums Interseguro Strong performance in most products Outgrowing the overall insurance industry Gross premiums and collections by business unit (S/ mm) YoY growth in premiums (as of December 2021) Regulated Private Annuities Individual Life Other Life P&C D&S Total A
Slide 41: Resilient wealth management business
Resilient wealth management business Inteligo Positive trend in AUM growth Solid fee generation due to client mix Inteligo Group AUM (S/ mm) Fees / Avg. AUM CAGR: 9.3% 22,981 0.9% 0.9% 20,989 0.8% 0.8% 17,593 18,293 2018 2019 2020 2021 2018 2019 2020 2021 Strong core revenue generation High profitab
Slide 42: Expense growth driven by recovery in activity and digital investments
Expense growth driven by recovery in activity and digital investments Optimizing our distribution channels Variable expenses drive costs higher Units Other expenses (S/ mm) 2018 2021 % Change Financial 2,263 270 189 -30% stores 1,978 1,911 1,837 ATMs 1,975 1,581 -20% Correspondent 2,506 3,157 +26% a
Slide 43: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 44: Sustained assets growth supported by appropriate funding
Sustained assets growth supported by appropriate funding IFS Total gross loans Total deposits S/ mm S/ mm CAGR +9.5% CAGR +13.2% 43,082 44,688 47,149 48,898 38,257 34,055 38,093 33,682 2018 2019 2020 2021 2018 2019 2020 2021 AUM evolution Net shareholders’ equity S/ mm S/ mm CAGR +9.3% CAGR +10.5% 2
Slide 45: Growth in total revenues despite pressure on NIM
Growth in total revenues despite pressure on NIM IFS Total revenues (1) NIM S/ mm CAGR +6.6% 5,922 5.4% 5,384(3) 5,488 5.3%(3) 4,889(2) 4.5% 4.1% 2018 2019 2020 2021 2018 2019 2020 2021 Net profit ROAE S/ mm CAGR +6.7% 1,479(3) 1,504(4) 18.6%(2) 18.6%(3) 1,236(2) 16.3%(4) 384 4.5% 2018 2019 2020 202
Slide 46: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 47: A "Great Place to Work" with a distinctive culture
A “Great Place to Work” with a distinctive culture and strong sense of achievement for new talent Our commitment to fostering a performance-based culture is demonstrated by being ranked among the top Peruvian and Latin American companies Top 20 in Peru Top 10 in Peru for the past 20 years 2011 - 202
Slide 48: Strong corporate governance
Strong corporate governance Board of Directors BOD with majority of independent members Carlos Rodríguez-Pastor IFS: 4 out of 7 Chairman Strong corporate Felipe Morris Fernando Zavala governance Director Director Highly supervised related party exposure, well below regulatory limits Alfonso Bustaman
Slide 49: Sustainability as a future competitive advantage
Sustainability as a future competitive advantage 48
Slide 50: Highlights
Highlights Distinctive platform to benefit from growth 01. potential Outstanding track record of sustainable 02. growth and high profitability 03. Unique culture and commitment to ESG
Slide 51: Appendix
Cd Intercorp Financial Services oooeeen | Appendix
Slide 52: Resilient financial system
Resilient financial system Gross loans growth and asset quality Profitability recovering after COVID-19 pandemic Banking system gross loans (S/ bn) Banking system net profit (S/ mm) PDL 3.8% 3.0% 3.0% 3.8% ROAE 18.5% 18.5% 4.0% 13.3% ratio CAGR +8.9% CAGR 2018-21 350 326 9,082 271 286 8,220 10.6% 7,
Slide 53: IFS income statement – IFRS
IFS income statement – IFRS Incom e S t a t e m e nt ( S / m m ) 2018 2019 2020 2021 % chg '19 / '18 % chg '20/ '19 % chg '21/ '20 Interest and similar income 4,321.3 4,847.2 4,665.0 4,605.6 12.2% (3.8%) (1.3%) Interest and similar expenses (1,177.3) (1,424.0) (1,192.3) (1,057.9) 21.0% (16.3%) (11.3
Slide 54: IFS balance sheet – IFRS
IFS balance sheet – IFRS Ba la nce S he e t ( S / m m ) 2018 2019 2020 2021 % chg '19 / '18 % chg '20/ '19 % chg '21/ '20 Cash and due from banks 8,380.4 11,128.9 18,765.5 17,104.5 32.8% 68.6% (8.9%) Inter-bank funds 495.0 85.0 18.1 30.0 (82.8%) (78.7%) 65.7% Financial investments 17,629.4 19,072.7
Slide 55: Slide 55