Slide 1: Management Presentation
Management Presentation March 2023
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 in numbers
Interbank in numbers 1,172 Earnings 22% MS consumer 9% MS commercial 18% (S/ mn) loans banking ROE 43% C/I 5.3 Customers 71% Digital ratio (mn) customers As of December 31, 2022 2
Slide 4: Interbank at a glance
Interbank at a glance 3
Slide 5: Leading bank in Peru with strong financial performance
Leading bank in Peru with strong financial performance Financial highlights Leading position in the Peruvian banking system(2) As of December 31, 2022 S/ mn | US$ mn Assets (1) 66,446 | 17,422 Gross loans (1) 45,270 | 11,869 #3 #2 #1 21.8% 22.3% Deposits (1) 17.6% Market share in Market share in 44,
Slide 6: Solid capital ratios
Solid capital ratios Key initiatives Capital ratio evolution Solvency ▪ Fully capitalized 2019 earnings to strengthen Banking System 14.6% 15.4% 14.9% 14.4% CET1 and TCR TCR ▪ Called US$ 200 million hybrid Tier 1 bond in April 2020 to reduce interest expense on 17.0% 12.5% 15.9% 11.6% 12.0% 15.2% 15
Slide 7: 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 $200 million in senior bonds million in hybrid Tier 1 in the international bonds in the capital markets, IFS execut
Slide 8: Intercorp Group: striving to make Peru the best place to raise a family in Latin America
Intercorp Group: striving to make Peru the best place to raise a family in Latin America Financial services Retail US$ 8.5bn Revenues in 2021 ~3.9% of Peru 2021 GDP Education Other (1) Source: Company information and Central Bank 7 1) Related companies excluding Aviva and Urbi
Slide 9: Key messages
Key messages 8
Slide 10: Key messages
Key messages 1 Political uncertainty impacts macro outlook 2 Solid year in banking activity 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 11: Political uncertainty impacts macro outlook
Political uncertainty impacts macro 1 outlook GDP growth YoY (%) Interest rates (%) Soles reference rate (BCRP) Feb23 Dollar reference rate (FED) 7.50 7.75% 5.50 3.9 3.2 3.4 Jan23 2.50 4.50 4.75% 2.0 1.7 0.25 0.25 1.75 0.25 0.25 0.25 4Q21 1Q22 2Q22 3Q22 4Q22 Jan21 Jun21 Dec21 Jun22 Dec22 USD/PEN Inf
Slide 12: Key messages
Key messages 1 Political uncertainty impacts macro outlook 2 Solid year in banking activity 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 13: Resilient banking activity, moderating consumer dynamics
Resilient banking activity, moderating 2 consumer dynamics 6.6 7.0 10 9 5.5 +7% QoQ 8 +8% QoQ +28% YoY +29% YoY 4Q21 3Q22 4Q22 4Q21 3Q22 4Q22 Credit & debit cards purchases (S/ bn) Credit cards & personal loans balances (S/ bn) 942 1,019 296 254 750 +36% QoQ +17% QoQ +8% YoY 136 +2x YoY 4Q21 3Q22 4Q
Slide 14: Growth across all revenue lines in banking
Growth across all revenue lines in 2 banking % YoY +23% +12% +21% +21% +169 +19 +21 1,186 977 4Q21 Net interest and Fee income from Other income 4Q22 similar income financial services, net Banking – Revenue bridge from 4Q21 to 4Q22 (S/ mn) 13
Slide 15: Shift in loan mix and repricing expand NIM further
Shift in loan mix and repricing expand 2 NIM further Reactiva Commercial Mortgages Payroll deduction loans Yield on loans NIM Credit cards & personal loans 9% 5% 10.1% 9.5% 41% 8.9% 42% 7.9% 8.1% 5.2% 21% 4.7% 4.8% 20% 4.4% 4.1% 11% 49% 11% 54% Retail Retail 22% 18% 4Q21 4Q22 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 16: Rising funding costs with best LDR among peers
Rising funding costs with best LDR 2 among peers 2019 2021 2022 Cost of funds Cost of deposits Interbank 102% 96% 101% 3.1% 2.7% Bank 1 104% 99% 102% 2.1% 2.6% 1.6% 2.2% 1.4% Bank 2 105% 116% 109% 1.5% 1.1% 0.8% Ref. rate YoY Bank 3 118% 123% 134% +500 bps (S/) +425 bps (US$) System 106% System 104%
Slide 17: Key messages
Key messages 1 Political uncertainty impacts macro outlook 2 Solid year in banking activity 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 18: Solid risk management capabilities
3 Solid risk management capabilities Better asset quality than the system despite focus on Best total PDL ratio among peers (%) retail – PDL ratio evolution (%) Interbank System Commercial loans Retail loans Total loans 3.8% 3.8% 3.9% BBVA BBVA 5.4% 2.5% BBVA 4.4% 3.0% Scotiabank Scotiabank 5.0% 2.5
Slide 19: Manageable dollarization levels
3 Manageable dollarization levels Gross Loans by segment & percentage in S/ Currency mix Dec22 93% 94% 94% 94% 95% 89% 92% 92% Gross Loans Total Assets 85% 78% 76% 73% 74% 73% 74% 74% USD USD 71% 26% 33% 63% 64% 58% 52% 52% 52% 51% 50% 49% 41% S/ S/ 74% 67% 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 20: Key messages
Key messages 1 Political uncertainty impacts macro outlook 2 Solid year in banking activity 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 21: Positive developments in banking digital indicators
Positive developments in banking digital indicators… 4 71% 57% 64% 58% 65% 38% Dec21 Dec22 Dec21 Dec22 Dec21 Dec22 Digital customers Digital acquisition Digital sales (% of digital customers) (% of monthly retail customers “born digitally” ) (% of products sold digitally) 94% 94% 46 49 54% 58% Dec21
Slide 22: 9.8 million users in Plin and 2.5 million in Tunki
9.8 million users in Plin and 2.5 million in Tunki 4 +72% YoY +91% YoY +2x YoY 19.3 1,084 9.8 887 14.5 8.6 5.7 568 7.3 Dec21 Sep22 Dec22 Dec21 Sep22 Dec22 Dec21 Sep22 Dec22 Users (mn) Merchants (th) Transactions (units in mn) +56% YoY +65% YoY +3x YoY 2.5 517 4.5 2.2 470 1.6 314 3.1 1.2 Dec21 Sep22
Slide 23: Continues solid growth in banking customer base to over 5 million
Continues solid growth in banking customer base to over 5 million 4 +18% YoY +29% YoY +20% YoY 5.1 5.3 2.2 152 2.0 145 4.5 1.7 127 4Q21 3Q22 4Q22 4Q21 3Q22 4Q22 4Q21 3Q22 4Q22 Banking – retail customers (mn) Banking – digital customers (mn) Banking – commercial customers (th) 22
Slide 24: Key messages
Key messages 1 Political uncertainty impacts macro outlook 2 Solid year in banking activity 3 Solid risk management capabilities 4 Positive developments in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 25: Continuous focus on efficiency
Continuous focus on efficiency 5 Variable expenses drive costs higher – Total expenses(2) Optimizing our distribution channels (Units) (S/ mn) 2019 2022 % Change Financial stores 255 164 -36% 1,847 1,696 1,570 1,491 ATMs 1,598 1,554 -3% Correspondent 4,183 5,672 +36% agents(1) Sales force 588 589 0%
Slide 26: Developments on sustainability
Developments on sustainability 6 Social Governance #3 Interseguro +872K sessions #4 Interbank + 679K users #7 Izipay #1 Interbank 4.8/5.0 score for webinars #9 Inteligo Interbank among 10 Interbank Most Admired Digital Transformation Bank Companies in Peru of the Year in LatAm #1 Interbank #9 Interb
Slide 27: Increasingly involved in green & sustainable financing
Increasingly involved in green & sustainable financing 6 160(US$ mn) 60(US$ mn) 20(US$ mn) 100 (S/ mn) Syndicated Green Sustainability Sustainability sustainability loan loan loan loan (Lead arranger) (Arranger) (Arranger) (Arranger) We help our customers grow their businesses in a sustainable way 2
Slide 28: Our way of working will enable us to achieve our goals
Our way of working will enable us to achieve our goals 6 Great Place to Work Our strategic values Top 20 in Peru for the past 20 years #3 in Latin America in 2022 Integrity Courage #1 in Peru in 2022 #13 for women in Peru in 2022 Innovation Collaboration #2 for millennials in Peru in 2022 #1 for wor
Slide 29: Strong corporate governance
Strong corporate governance 6 Board of directors BOD with majority of independent members Carlos Rodríguez-Pastor Fernando Zavala Chairman Director Interbank: 6 out of 10 Ramón Barúa Felipe Morris Director Director Strong corporate governance Marcia Nogueira De Mello Cayetana Aljovín Independent Dir
Slide 30: Appendix
Appendix 29
Slide 31: Strategic focus on consumer loans
Strategic focus on consumer loans Distinctive loan breakdown… …when compared to the banking system Banking System Commercial Commercial 46% 64% Mortgages Consumer Mortgages Consumer 38% loans Retail 47% loans Retail 62% 36% 53% 54% S/ 45.3BN S/ 24.3BN S/ 356.6BN S/ 125.6BN Leading position in consum
Slide 32: 40 bps market share gain in total loans
40 bps market share gain in total loans Performing loans (S/ mn) Breakdown of loans (S/ mn) %chg %chg +1% QoQ | +6% YoY 4Q21 3Q22 4Q22 QoQ YoY Consumer loans Credit cards & other loans 7,503.3 9,012.6 9,699.3 7.6% 29.3% (1) Payroll deduction loans 4,542.1 4,529.1 4,629.1 2.2% 1.9% Total consumer loa
Slide 33: 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 MS 2016 12.8% MS Dec22 14.9% Other 6% Bonds Demand Savings 14.3% 11% 26% 47% 10.9% Deposits Due to banks 76% 13% 3.3% 3.7% Time 21% CAGR 2016-21 4Q22 YoY Interbank System
Slide 34: 10 bps gain in total deposits market share, 14.9% in retail deposits
10 bps gain in total deposits market share, 14.9% in retail deposits Funding breakdown (S/ mn) Funding structure (S/ mn) 96% 98% 101% %chg %chg LDR(2) 4Q21 3Q22 4Q22 QoQ YoY Deposits 44,989.5 45,521.7 44,630.8 -2.0% -0.8% System’s 104% 104% 107% Retail 22,911.8 23,726.1 23,670.0 -0.2% 3.3% LDR(2) (1
Slide 35: Reactiva loan balances down 53% YoY, representing 5% of total portfolio
Reactiva loan balances down 53% YoY, representing 5% of total portfolio Reactiva Peru loan balances by segment (S/ bn) 4Q22 Segment YoY 4.9 Corporate -77% Mid-sized -55% 2.9 2.3 SME -44% Total -53% 4Q21 3Q22 4Q22 34 SME Mid-sized Corporate
Slide 36: Rescheduled loans decreased 61%
Rescheduled loans decreased 61% Banking – Rescheduled loans (S/ bn) Clients 343 459 214 8.6 (Thousand) 6.9 Rescheduled 30% 31% 11% Retail 3.8 balance (%) 12.7 Apr20 Jun20 Dec22 10.9 Commercial Total 5.0 4.0 4.1 1.3 Apr20 Jun20 Dec22 Apr20 Jun20 Dec22 35
Slide 37: Manageable dollarization levels
Manageable dollarization levels Total loans Retail loans Commercial loans % PEN 67% 73% 87% 93% 56% 61% System 8% 5% 26% 26% 48% 50% 92% 95% 74% 74% 52% 50% 4Q17 4Q22 4Q17 4Q22 4Q17 4Q22 Retail loans breakdown Commercial loans breakdown Consumer Mortgages Corporate Medium Small & Micro 95% 96% 80% 9
Slide 38: Overview of Peruvian banking system
Overview of Peruvian banking system Profitability recovering after COVID-19 pandemic – Banking Steady loan growth – Banking system gross loans (S/ bn) system net profit (S/ mn) ROE 18.5% 4.0% 13.3% 23.1% CAGR +7.0% CAGR 2019-22 10,119 350 357 9,082 326 286 7,218 8.0% 238 228 181 222 2,112 7.6% 105 1
Slide 39: Interbank's income statement
Interbank’s income statement % chg % chg % chg % chg Income Statement (S/ mn) 2019 2020 2021 2022 '19/'18 '20/'19 '21/'20 '22/'21 Interest income 4,094.8 3,865.1 3,510.8 4,670.3 14.1% (5.6%) (9.2%) 33.0% Interest expenses (1,231.0) (983.9) (811.0) (1,389.8) 18.3% (20.1%) (17.6%) 71.4% Gross financia
Slide 40: Interbank's balance sheet
Interbank’s balance sheet % chg % chg % chg % chg Balance Sheet (S/ mn) 2019 2020 2021 2022 '19/'18 '20/'19 '21/'20 '22/'21 Assets Cash and due from banks 9,861.5 17,716.8 14,413.6 11,340.2 20.1% 79.7% (18.6%) (21.3%) Investments, net 5,559.4 8,951.2 10,047.1 9,568.4 (4.0%) 61.0% 12.2% (4.8%) Loan p
Slide 41: 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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