Slide 1: Management Presentation August 2013
Management Presentation August 2013
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% 58.04% # 1 private bank in payroll-deduction loans # 1 provider of annuities to public sector employees # 4 in life insurance premiums # 2 provider of credit card financing # 6 insurance company by
Slide 5: IFS financial highlights
IFS financial highlights Selected financial information (S/. million) June 2008 to 2Q13 2010 2011 2012 2013 CAGR Total assets 21,900 22,688 26,601 30,539 14.5% Total loans (1) 11,836 13,903 15,217 16,820 15.0% Retail loans (2) 5,828 7,043 7,890 8,415 15.6% Total deposits 11,992 13,141 14,636 17,644
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 08-12 Average annual growth rate 08-12 Average annual inflation rate 2013E (1) 2013E (1) 9.7% 10.1% 6.3% 5.7% 4.9% 5.2% 4.0% 4.1% 4.1% 5.6% 5.5% 3.4% 4.0% 3.6% 2.7%3.0% 2.8% 3.0% 2.8% 2.4% 1.7
Slide 8: …with strong macroeconomic fundamentals
…with strong macroeconomic fundamentals Responsible fiscal policy Solid reserve position Budget Balance (% GDP) Net International Reserves (% GDP) (1) 2.9% 2.3% 2.4% 2.1% 31.9% 1.9% 1.0% 15.6% 15.5% 14.2% -0.3% -0.3% 10.1% -1.3% 2005 2006 2007 2008 2009 2010 2011 2012 2013E Peru Brazil Chile Mexico
Slide 9: The banking system has experienced profitable, solid growth…
The banking system has experienced profitable, solid growth… Performing loans (S/. billion) ROE (%) Commercial 2008-2013 2Q Net income (S/. million) Retail CAGR ROE (%) 31.7% 150.6 12.5% 24.7% 24.3% 24.6% 23.0% 140.2 22.5% 22.4% 125.2 106.9 88.8 89.9 65.4% 65.4% 10.7% 67.4% 69.0% 69.8% 68.7% 4,332 4
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 (%) 67% 29% 21% 35% 35% 28% 26% 19% 14% 6% 10% 3% 9% 15% 5% 2% 10% 11% 7% 5% Chile Brazil Colombia Peru Argentina Chile Brazil Colombia Peru Arge
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 3,676 26,372 3,456 3,159 22,261 19% 19,786 13% 17% 14,963 2,054 23% 31% 14,137 1,832 29% 1,777 12,753 17% 18% 15% 12% 20% 13% 1,0
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 73% of 20% of 7% of 50% of Loans (1) 50% of Loans (1) Premiums Premiums Premiums 69% of Interest on 31% of Interest on Loans (1) Loans (1) AUM: S/. 2.9 b
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 Credit cards market share 2008 2008 2013 2Q 2013 2Q 24.5% 26.8% 21.6% 19.9% 19.7% 22.3% 21.0% 19.2% 19.1% 15.3% 15.9% 15.1% 12.5% 12.9% 11.9% 11.2% 8.0% 8.4% BCP Interbank BBVA Scotiabank (1) BCP Interbank Falabella BBVA Sc
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 Cash and due to banks Others Other consumer Mortgages 7 , 00 0 Real Estate Others 22, 000 S/. million S/. mill
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 810 286.5% 274.2% 266.6% 269.1% 0. 05 234.6% 225.9% 720 3.2% 2.9% 3.0% 2.8% 2.4% 2.4% 630 2.2% System: 199.3% 540 System:
Slide 19: Stable funding and responsible capital management
Stable funding and responsible capital management Funding mix - Interbank BIS ratio - Interbank Deposits and obligations Tier II Lines of credit Tier I Long term loans Bonds 24,189 12% 20,523 14.4% 14.5% 6% 13.7% 13% 13.3% 17,118 17,452 8% 4% 3.6% 8% 11.5% 12% 4.7% 3.2% +1.1% Additional 13% 10.8% 3.
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 Results from financial operations Efficiency ratio* 2000 51.2% 9.3% 9.1% 8.6% 8.6% 8.5% 50
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% 33.8% 34.6% 33.8% 32.1% 31.3% 31.7% 28.2% 28.8% 28.5% 26.2% 27.1% 25.7% 78.5% 18.3% 56.7% 696 706 44.1% 31.6% 32.5% 570 28.0% 541 498 3.2% 507 499
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: Intercorp Financial Services