Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q1 2016 Earnings Presentation
27 slides from Intercorp Financial Services's earnings presentation, 2016
Slide 1: Intercorp Financial Services First Quarter 2016 Earnings Presentation
Intercorp Financial Services First Quarter 2016 Earnings Presentation
Slide 2: Highlights 1Q16
Highlights 1Q16 IFRS 1Q16 net profit was S/ 60.7 million, a 72.5% decrease QoQ and 76.9% YoY Intercorp The bottom-line result was mainly affected by higher requirements of technical reserves due to a lower discount rate, and by a negative impact on the investment portfolio at Interseguro. Moreov
Slide 3: Excluding extraordinary items, IFS 1Q16 net profit decreased 24.6% QoQ and 15.1% YoY
Excluding extraordinary items, IFS 1Q16 net profit decreased 24.6% QoQ and 15.1% YoY IFRS Intercorp Financial Services' Profit by segment S/ million %chg %chg 1Q15 4Q15 1Q16 QoQ YoY Interbank 205.2 219.9 201.8 -8.2% -1.7% Interseguro 33.8 3.5 -136.9 n.m. n.m. Negative impact from investments -4.5 -1
Slide 4: IFS key indicators 1Q16
IFS key indicators 1Q16 IFRS Intercorp Financial Services' key indicators S/ million 1Q15 4Q15 1Q16 %chg QoQ %chg YoY Net interest and similar income 545.8 652.1 643.9 -1.3% 18.0% Fee income from financial services, net 194.8 214.7 206.6 -3.8% 6.0% Results Profit for the period 262.9 220.9 60.7 -72.
Slide 5: Interbank
CJ Intercorp Financial Services
Slide 6: Interbank's profits decreased 8.2% QoQ and 1.7% YoY
Interbank’s profits decreased 8.2% QoQ and 1.7% YoY mainly due to lower gains on foreign exchange transactions IFRS Banking Segment's P&L Statement S/ million %chg %chg 1Q15 4Q15 1Q16 QoQ YoY Interest and similar income 668.6 802.5 792.4 -1.3% 18.5% Interest and similar expenses -191.5 -242.7 -243.0
Slide 7: Performing loans grew 0.3% QoQ and 10.6% YoY
Performing loans grew 0.3% QoQ and 10.6% YoY Performing loans Breakdown of loans S/ million S/ million %chg %chg +10.6% 1Q15 4Q15 1Q16 QoQ YoY Consumer loans: +8.6% Credit cards 3,347.2 3,703.1 3,671.8 -0.8% 9.7% Other consumer 3,741.7 4,229.9 4,292.4 1.5% 14.7% Total consumer loans 7,089.0 7,933.0
Slide 8: Interbank's deposits decreased 2.4% QoQ but grew 14.3% YoY
Interbank’s deposits decreased 2.4% QoQ but grew 14.3% YoY Funding structure Funding breakdown S/ million %chg %chg S/ million 1Q15 4Q15 1Q16 QoQ YoY Gross Loans Deposits 102.5% 97.0% 99.9% Deposits* 22,099.6 25,880.9 25,268.7 -2.4% 14.3% Retail 9,271.6 10,685.9 10,733.4 0.4% 15.8% +17.8% Commercial
Slide 9: Total PDL ratio remained below system's average in 1Q16
Total PDL ratio remained below system’s average in 1Q16 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 185.5% 193.9% 186.4% Ratio 2.3% 0.8% 2.7% 2.1% 2.5% 2.5% 2.4% 2.4% 2.5% 2.8% 2.3% 2.3% 2.5% 1Q15 4Q15 1Q16 IBK 1Q15
Slide 10: 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 60.0% 68.4% 78.7% 84.2% 50.5% 60.4% 14.2% 10.1% 34.1% 26.8% 55.4% 45.4% 85.8% 89.9% 65.9% 73.2% 44.6% 54.6% 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 Retail loans breakdown Commercial loans br
Slide 11: Fee income increased 9.2% YoY and efficiency ratio improved by 110 bps YoY
Fee income increased 9.2% YoY and efficiency ratio improved by 110 bps YoY Fee income Operating expenses S/ million S/ million 350 .0 30.00% 500 .0 23.0% 300 .0 50.0% 22.3% 22.6% 25.00% 450 .0 42.3% 40.8% 41.2% 250 .0 400 .0 40.0% 20.00% 350 .0 200 .0 300 .0 30.0% 15.00% 250 .0 150 .0 200 .0 10.00%
Slide 12: 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 14.4% 14.3% 14.2% 14.2% 14.7% 20.00% 16.7% 16.5% 16.4% 15.6% 15.5% 15.00% 6.0% 5.8% 5.4% 5.5% 5.6% +1.7% +1.8% +1.6% +1.7% Additional Regulatory Capital Requirement 10.00% 10.0% Total Regulatory Minimum 10.7%
Slide 13: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 14: Interseguro's results in 1Q16 were negatively impacted by higher technical reserves
Interseguro’s results in 1Q16 were negatively impacted by a higher adjustment of technical reserves and lower results from investments Insurance Segment's P&L Statement S/ million %chg %chg 1Q15 4Q15 1Q16 QoQ YoY Net Interest and similar income 53.3 65.3 69.7 6.7% 30.7% Fee income from financial ser
Slide 15: 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 (1Q16) S/ million S/ million 34 4 28 26 14 6 -23 -48 -88 33 -136 -119 33-119 -136 1Q15 4Q15 1Q16 Adjustment of technical reserves resulting from changes in discount rate -27 -4 Net profit – Local
Slide 16: Total premiums earned less claims and benefits decreased QoQ and YoY
Total premiums earned less claims and benefits decreased QoQ and YoY Net premiums Adjustment of technical reserves S/ million S/ million Annuities 25.5% 20.8% 24.6% Discount rate -28 23 88 market share impact 204 228 177 177 156 151 6 43 9 46 48 4 5 11 11 223 152 120 118 152 145 1Q15 4Q15 1Q16 1Q15
Slide 17: Interseguro's investment portfolio grew 4.4% QoQ and 10.7% YoY
Interseguro’s investment portfolio grew 4.4% QoQ and 10.7% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 7.3% 6.6% 2.4% +10.7% 4,897 5,111 84 79 4,618 729 14 7 31 713 11 670 23 508 536 447 65 70 53 -7 -4 3,874 -16 3,501 3,647 -22 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 Fixed
Slide 18: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 19: Inteligo's net profit increased more than tenfold QoQ
Inteligo’s net profit increased more than tenfold QoQ Wealth Management Segment's P&L Statement S/ million %chg %chg 1Q15 4Q15 1Q16 QoQ YoY Interest and similar income 27.7 40.6 37.8 -6.9% 36.3% Interest and similar expenses -13.4 -13.7 -13.2 -3.9% -1.3% Net interest and similar income 14.3 26.8 24.
Slide 20: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million +17.5% +12.9% 1,686 1,681 13,192 13,376 11,384 2,508 2,579 1,489 2,561 8,823 10,685 10,797 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 Deposits AUM Revenues Net profit S/ million S/ million Fee (1) 1.4% 1.0% 0.9% ROAE 29.1% 1.9% 20.5% AUMs -6.1%
Slide 21: Summary
CJ Intercorp Financial Services
Slide 22: 1Q16 Takeaways
1Q16 Takeaways Interbank 10.6% YoY growth in performing loans and 12.3% growth in consumer loans 14.3% YoY growth in total deposits, resulting in 11.8% market share Dollar exposure within the loan book reduced by 730 bps YoY Interseguro Premiums remained stable QoQ and decreased 13.3% Yo
Slide 23: Appendix
Appendix CJ Intercorp Financial Services
Slide 24: IFS 1Q16 net profit decreased 72.5% QoQ and 76.9% YoY
IFS 1Q16 net profit decreased 72.5% QoQ and 76.9% YoY IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 25.5% 24.2% 21.9% ROAE 29.1% 1.9% 20.5% -1.7% -15.9% 205 220 202 36 30 3 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 Interseguro IFS Net profit in S/ million Net profit in S/ millio
Slide 25: IFS 1Q16 P&L
IFS 1Q16 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 1Q15 4Q15 1Q16 QoQ YoY Interest and similar income 753.5 912.0 903.7 -0.9% 19.9% Interest and similar expense -207.7 -259.9 -259.7 -0.1% 25.0% Net interest and similar income 545.8 652.1 643.9 -1.3% 18.0% Provision fo
Slide 26: Interseguro's 1Q16 net profit bridge to IFRS
Interseguro’s 1Q16 net profit bridge to IFRS Local GAAP vs. IFRS S/ million 13.8 Use of different Impairment loss on discount rates and available-for-sale and mortality tables to sale of securities calculate technical reserves -119.3 -135.5 -26.5 -3.5 Net profit (SBS) 1Q16 Adjustment of technical Im
Slide 27: 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 (1Q16) S/ million S/ million -1.7% $250 21 1 3 $200 205 220 202 91 89 $150 1Q15 4Q15 1Q16 220 $100 202 Net profit – Local GAAP S/ million $50 -1.2% $0 Net profit (SBS) Net interest and Fee income f
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