Slide 1: Management Presentation May 2022
Management Presentation May 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 Interbank’
Slide 3: Interbank at a glance
CJ Interbank Interbank at a glance
Slide 4: Leading bank in Peru with strong financial performance
Leading bank in Peru with strong financial performance Financial highlights Leading position in the Peruvian financial system(1) As of March 31, 2022 Assets S/ 65,030 mm 2 2 1 Gross loans S/ 42,326 mm 19.1% 22.1% 24.4% Deposits S/ 42,905 mm Market share in Market share in ROE consumer loans payroll
Slide 5: Solid capital ratios
Solid capital ratios Key initiatives Capital ratio evolution Solvency Banking ▪ Capitalized 2019 earnings to strengthen CET1 System 15.1% 15.1% 14.9% 15.1% and TCR ratio TCR Considering dividends distributed in ▪ Called US$ 200 million hybrid Tier 1 bond in 17.0% 12.5% Mar22 15.9% 11.6% 11.5% April
Slide 6: Milestones in Interbank's capital markets history
Milestones in Interbank’s capital markets history Interbank issues $300 million in subordinated Tier 2 bonds in the international capital markets Interbank issues $200 Interbank issues $200 million in senior bonds million in hybrid Tier 1 in the international bonds in the capital markets, IFS execut
Slide 7: Intercorp Group: striving to make Peru the best place to raise a family in Latin America
Intercorp Group: striving to make Peru the best place to raise a family in Latin America Financial services Retail US$ 7.6bn Revenues in 2021 ~3.5% of Peru 2021 GDP Education Other (1) Source: Company information and BCRP. 6 1) Related companies excluding Aviva and Urbi.
Slide 8: Key messages
CJ Interbank Key messages
Slide 9: Key messages
Key messages 1 Volatile macro and political scenario 2 Strong recovery in core banking business 3 “Two-tier” digital Consistent credit quality metrics 4 strategy to foster growth
Slide 10: Key messages
Key messages 1 Volatile macro and political scenario 2 Strong recovery in core banking business 3 “Two-tier” digital Consistent credit quality metrics 4 strategy to foster growth
Slide 11: Volatile macro and political scenario
1 Volatile macro and political scenario LatAm FX rate Interest rates (Index; 100 = Jan21) (%) Peru Chile Mexico Colombia Brazil Policy rate 10Y Sovereign rate 121 7.9 115 6.4 6.6 5.9 4.9 5.4 106 3.7 May22 102 4.50 5.00% 4.00 94 2.50 1.00 0.25 0.25 0.25 Jan21 Mar21 Jun21 Sep21 Dec21 Mar22 Apr22 Jan21
Slide 12: Key messages
Key messages 1 Volatile macro and political scenario 2 Strong recovery in core banking business 3 “Two-tier” digital Consistent credit quality metrics 4 strategy to foster growth
Slide 13: Solid performance in consumer finance and SME indicators
Solid performance in consumer finance and SME 2 Indicators, credit cards & personal loans up 40% YoY Credit cards turnover Credit card sales Credit cards & personal loans balances S/ billion Thousand units S/ million +87% +92% +40% 3.6 92 90 3.4 8,170 7,503 5,857 1.9 47 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22
Slide 14: Double digit growth in NII and fee income
2 Double digit growth in NII and fee income Interbank – Revenue bridge from 1Q21 to 1Q22 S/ million % Chg +19.1% +12.2% -53.5% +4.7% +16.1% YoY YoY Excl. 1Q21 extraord. gain on investments +16 +122 -94 Fees from Extraord. Interest on credit card gain on 989 retail loans services investments 945 +22%
Slide 15: Shift in loan mix and higher rates driving NIM, reaching 4.4% in 1Q22
Shift in loan mix and higher rates driving NIM, 2 reaching 4.4% in 1Q22 Performing loans breakdown NIM Credit cards & personal loans Payroll deduction loans Mortgages Commercial Reactiva NIM 9% 9% 16% 4.4% 4.1% 42% 39% 3.5% 39% 21% 20% 19% 45% 11% 52% 11% 11% Retail Retail 15% 18% 20% 1Q21 4Q21 1Q22
Slide 16: Key messages
Key messages 1 Volatile macro and political scenario 2 Strong recovery in core banking business 3 “Two-tier” digital Consistent credit quality metrics 4 strategy to foster growth
Slide 17: Solid risk management capabilities
Solid risk management capabilities 3 Better asset quality than the system despite focus on retail Best total PDL ratio among peers PDL ratio evolution PDL ratio as of March 2022 Interbank System Commercial loans Retail loans Total loans 3.8% 3.8% 3.8% BBVA BBVA 4.5% 2.6% 4.0% 3.0% BCP BCP 4.5% 2.5%
Slide 18: Rescheduled loans decreased 55% from peak
Rescheduled loans decreased 55% from peak 3 Interbank – Loan rescheduling Interbank – Retail loans rescheduling S/ billion S/ billion Clients 332 441 240 (Thousand) Clients 343 459 249 Rescheduled 34% 43% (Thousand) 19% balance (%) -51% Mar22/Jun20 Rescheduled 8.6 30% 31% 14% 6.9 balance (%) 4.2 12.
Slide 19: Reactiva Peru loan balances down 34% YoY
Reactiva Peru loan balances down 34% YoY, representing 9% of total portfolio 3 Reactiva Peru loan balances by segment S/ million, Local GAAP -34% 1Q22 Segment %chg YoY 6,348 107 485 Corporate -56% 4,896 272 52 4,194 214 77 3,644 Mid-sized -34% 2,808 2,402 SME -29% 2,113 1,764 1,501 Total -34% 1Q21 4
Slide 20: Key messages
Key messages 1 Volatile macro and political scenario 2 Strong recovery in core banking business 3 “Two-tier” digital Consistent credit quality metrics 4 strategy to foster growth
Slide 21: "Two-tier" digital strategy to foster growth
“Two-tier” digital strategy to foster growth 4 1. Digitalization +20 NPS Digital customers 2. New growth vs. non-digital customers 100% digital services points (Mar22) Payments | Neobank | Open Banking Consolidating growth Early stages Piggy bank My Finances Rewards program 100% digital Digital wall
Slide 22: Digitalization indicators continue to improve
Digitalization indicators continue to improve 4 1. Digitalization 100% digital services Digital customers (1) Digital sales Personalized campaigns % of digital customers % of products sold digitally % of campaigns 65% 65% 61% 25% 23% 58% 60% 55% 11% Mar21 Dic21 Mar22 Mar21 Dic21 Mar22 Mar21 Dic21 Ma
Slide 23: Tunki, our ally to bank the unbanked
Tunki, our ally to bank the unbanked 4 2. New growth Connects the banked + unbanked through plin Tunki Users Micromerchants Million Thousand 1.0 1.6 1.8 2x 314 368 5x Users 68 Micromerchants Mar21 Dic21 Mar22 Mar21 Dic21 Mar22 Transactions Strategic rationale ▪ Enlarging ecosystem to the unbanked an
Slide 24: Plin, ~7 million users and growing
Plin, ~7 million users and growing 4 2. New growth Plin Users(1) IBK - Micromerchants Million Thousand IBK’s MS 40% 41% 42% ~7.0 3X Transactions(1) 5.7 6.6 MM 568 672 (Mar22 vs. Mar21) 3.2 (Apr22) 260 Mar21 Dic21 Mar22 Mar21 Dic21 Mar22 Daniel Jiménez Talledo 2x Users 3x Micromerchants Partners Stra
Slide 25: Early stage initiatives
Early stage initiatives 4 2. New growth Credit cards NPS Users Share of wallet Thousand Thousand % 6% 21 60 66 49 65 K NPS 3% (Apr22) 8 3 (Mar-22) points Mar21 Dic21 Mar22 Mar21 Mar22 Mar21 Mar22 3x Users 2x Share of wallet 24
Slide 26: 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% 4 Retail customers Digital customers Commercial customers Million Million Thousand 4.7 1.8 132 4.5 1.7 127 4.0 109 1.4 Mar21 Dic21 Mar22 Mar21 Dic21 Mar22 Mar21 Dic21 Mar22 +19% YoY +34% YoY +21% YoY (Mar22) (Mar22) (Mar22) 25
Slide 27: Investment highlights
CJ Interbank Investment highlights
Slide 28: Investment highlights
Investment 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 29: Investment highlights
Investment 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 30: Strategic focus on consumer loans
Strategic focus on consumer loans Distinctive loan breakdown… …when compared to the banking system Gross loans breakdown (as of March 2022) Gross loans breakdown (as of March 2022) Banking System Commercial Commercial 48.3% 66.5% Mortgages Mortgages 39.7% Consumer Consumer loans Retail 48.9% loans 6
Slide 31: Diversified funding base with strength in retail deposits
Diversified funding base with strength in retail deposits Significant deposits base A growing retail deposit-gathering franchise Funding base breakdown (as of March 2022) Total retail deposits growth evolution Other MS 2016 12.8% MS Mar22 14.8% 5.4% Bonds Demand 14.3% 11.4% Savings 10.9% 25.3% 50.2%
Slide 32: 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 Total expenses(2) (S/ mm) 2019 Mar22 % Change Financial 256 182 -29% stores 1,696 1,570 1,491 ATMs 1,598 1,563 -2% Correspondent 4,359 6,027 +38% agen
Slide 33: Investment highlights
Investment 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 34: Sustained assets growth supported by appropriate funding
Sustained assets growth supported by appropriate funding Total gross loans Total deposits S/ mm S/ mm CAGR 9.1% CAGR 12.4% 43,041 42,326 44,596 44,990 46,653 41,594 41,510 42,905 35,610 36,166 2019 2020 2021 1Q21 1Q22 2019 2020 2021 1Q21 1Q22 Total assets Net shareholders’ equity S/ mm S/ mm CAGR 14
Slide 35: Strong recovery in revenues and profitability
Strong recovery in revenues and profitability Total revenues (1) Net interest margin (NIM) S/ mm 5.7% 4,093 3,791 3,766 4.6% 4.4% 3.8% 3.5% 945 989 2019 2020 2021 1Q21 1Q22 2019 2020 2021 1Q21 1Q22 Net profit ROE S/ mm 1,222 1,201 22.0% 19.1% 19.1% 8.8% 265 314 4.3% 134 2019 2020 2021 1Q21 1Q22 2019
Slide 36: Investment highlights
Investment 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 37: 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 #1 in Peru #1 in Latin America in 2022 in 2021 #13 for women i
Slide 38: Strong corporate governance
Strong corporate governance Board of Directors BOD with majority of independent members Carlos Rodríguez-Pastor Chairman Interbank: 5 out of 9 Strong corporate Ramón Barúa Fernando Zavala governance Director Director Relevant committees: Felipe Morris Cayetana Aljovín - Audit Director Independent Di
Slide 39: Sustainability operating framework and updates
Sustainability operating framework and updates Strategic Goal To create sustainable value by incorporating responsible management for the environment and society and acting under robust corporate governance policies Sustainability as an Collaborative agenda Business model with IFS recognized as a en
Slide 40: Investment highlights
Investment 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 41: Appendix
CJ Interbank oom ae Appendix
Slide 42: Consumer lending advancing strongly
Consumer lending advancing strongly Performing loans Breakdown of loans S/ million S/ million %chg %chg System’s growth(1) +2% 1Q21 4Q21 1Q22 QoQ YoY Consumer loans +7% Credit cards & other loans 5,857.1 7,503.3 8,169.8 8.9% 39.5% Payroll deduction loans(2) 4,445.2 4,542.1 4,545.3 0.1% 2.3% 41,249 4
Slide 43: LDR still below 100%
LDR still below 100% Funding structure Funding breakdown S/ million S/ million %chg %chg 1Q21 4Q21 1Q22 QoQ YoY LDR(2) 89% 96% 99% Deposits 46,652.8 44,989.5 42,905.2 -4.6% -8.0% Retail 21,115.3 22,911.8 22,190.3 -3.1% 5.1% System’s 95% 104% 106% Commercial(1) 25,537.5 22,077.8 20,714.9 -6.2% -18.9%
Slide 44: Resilient financial system
Resilient financial system Steady loan growth Profitability recovering after COVID-19 pandemic Banking system gross loans (S/ bn) Banking system net profit (S/ mm) ROAE 18.5% 4.0% 13.3% 7.4% 17.8% CAGR +10.6% CAGR 2019-21 350 349 326 326 9,082 286 14.8% 7,218 222 238 222 232 181 2,112 2,506 3.0% 988
Slide 45: Interbank's income statement
Interbank’s income statement % chg % chg % chg Incom e S t a t e m e nt ( S / m m ) 2019 2020 2021 1Q21 1Q22 '20/ '19 '21/ '20 1Q22/ 1Q21 Interest income 4,094.8 3,865.1 3,510.8 836.4 999.6 (5.6%) (9.2%) 19.5% Interest expenses (1,231.0) (983.9) (811.0) (198.9) (240.5) (20.1%) (17.6%) 20.9% Gr os s
Slide 46: Interbank's balance sheet
Interbank’s balance sheet % chg % chg % chg Fina ncia l S t a t e m e nt s 2019 2020 2021 1Q21 1Q22 '20/ '19 '21/ '20 1Q22/ 1Q21 As s e t s Cash and due from banks 9,861.5 17,716.8 14,413.6 17,965.0 11,509.2 79.7% (18.6%) (35.9%) Investments, net (1) 5,559.4 8,951.2 10,047.1 9,988.0 10,533.3 61.0% 1
Slide 47: Definitions
Definitions Concept Definition Total revenues Gross financial margin + fee income from financial services, net + gain on financial transactions Efficiency ratio (Administrative expenses + Depreciation + amortization) / (total revenues) NIM (Annualized gross financial margin) / (Average interest-earn
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