Slide 1: Management Presentation August 2023
Management Presentation August 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 (1H23)
Interbank in numbers (1H23) 576 Earnings 23% MS consumer 9% MS commercial 16 % (S/ mn) loans loans ROE 40% C/I 5.6 Retail 73% Digital ratio customers customers (mn) As of June 30, 2023 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 June 30, 2023 S/ mn | US$ mn Assets (1) 67,633 | 18,642 Gross loans (1) 46,351 | 12,776 #3 #2 #1 22.7% 22.1% Deposits (1) 16.3% Market share in Market share in 45,638
Slide 6: Solid capital ratios
Solid capital ratios Key initiatives Capital ratio evolution Solvency ▪ Fully capitalized 2019 earnings to strengthen Banking CET1 and TCR System 15.4% 14.9% 14.4% (1) 16.0% TCR ▪ Called US$ 200 million hybrid Tier 1 bond in April 2020 to reduce interest expense on 17.0% 12.5% 15.9% 12.0% bonds that
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 $200 million in senior bonds million in hybrid Tier 1 in the international bonds in the capital markets, IFS execut
Slide 8: Intercorp Group: striving to make Peru the best place to raise a family in Latin America
Intercorp Group: striving to make Peru the best place to raise a family in Latin America Financial services Retail US$ 8.4bn Revenues in 2022 ~4.0% of Peru 2022 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 Challenging macro environment 2 Growing market shares & revenues 3 Solid risk management capabilities 4 Positive development in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 11: Macro outlook slightly improving, but still challenging
Macro outlook slightly improving, but still 1 challenging Quarterly GDP growth YoY (%) Interest rates (%) Soles reference rate (BCRP) Dollar reference rate (FED) 2023E Jul23 1.2%-2.0% 7.50 7.75 7.75 7.75 3.9% 5.50 3.4% Jul23 2.0% 2.50 5.25 5.5 1.7% 4.50 4.75 0.25 -0.4% -0.5% 1.75 1Q22 2Q22 3Q22 4Q22
Slide 12: Key messages
Key messages 1 Challenging macro environment 2 Growing market shares & revenues 3 Solid risk management capabilities 4 Positive development in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 13: Increasing market shares
2 Increasing market shares 22.7 18.6 19.4 21.7 2Q22 2Q23 2Q22 2Q23 Consumer banking loans (%) Retail banking loans (%) 15.1 9.4 14.5 8.9 2Q22 2Q23 2Q22 2Q23 Retail deposits (%) Commercial banking loans (%) 12
Slide 14: Moderation in activity with more focus on lower risk segments
Moderation in activity with more focus 2 on lower risk segments 6.9 7.0 559 5.9 +1% QoQ 386 428 +11% QoQ +18% YoY -23% YoY 2Q23 1Q23 2Q23 2Q22 1Q23 2Q23 Credit & debit cards purchases (S/ bn) Mortgage disbursements (S/ mn) 1,048 301 267 784 867 -17% QoQ 234 +14% QoQ +11% YoY -11% YoY 2Q22 1Q23 2Q23
Slide 15: Double digit growth across all revenue lines
Double digit growth across all 2 revenue lines % YoY +17% +11% +13% +16% +33 +23 +267 2,356 2,033 1H22 Gross financial Net fee income Gain on financial 1H23 margin transactions Banking – Revenue bridge from 1H22 to 1H23 (S/ mn) 14
Slide 16: Shift in loan mix and repricing expand yields further
Shift in loan mix and repricing expand 2 yields further Credit cards & personal loans Payroll deduction loans Mortgages Commercial Yield on loans NIM Reactiva 8% 2% 11.0% 10.4% 10.1% 42% 9.5% 40% 8.9% 21% 5.2% 5.2% 5.3% 20% 4.7% 4.8% 11% 52% 11% 56% Retail Retail 21% 24% 2Q22 2Q23 2Q22 3Q22 4Q22 1Q2
Slide 17: Rising funding costs
2 Rising funding costs LDR(1) 101% 102% System’s Cost of funds Cost of deposits LDR(1) 108% 105% 57,709 59,089 7% 3.9% 11% 3.5% 15% 3.1% 13% 2.7% 3.4% 2.1% 3.1% 38% 38% 2.6% 2.2% 78% 1.5% Ref. rate YoY (2) +225 bps (S/) 38% 40% +350 bps (US$) 2Q22 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Retail deposits Commer
Slide 18: Key messages
Key messages 1 Challenging macro environment 2 Growing market shares & revenues 3 Solid risk management capabilities 4 Positive development in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 19: 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 3.9% 4.1% 3.8% 3.8% 3.8% BBVA BBVA 5.9% 2.3% BBVA 4.6% BCP BCP 4.7% 3.0% BCP 4.1
Slide 20: Manageable dollarization levels
3 Manageable dollarization levels Gross Loans by segment & percentage in S/ Currency mix Jun23 94% 94% 94% 95% 96% 92% 92% 93% Gross Loans Total Assets 89% 85% 78% USD 73% 74% 73% 74% 76% 74% 75% USD 71% 25% 30% 63% 64% 58% 52% 52% 52% 51% 50% 49% 47% 41% S/ S/ 75% 2014 2015 2016 2017 2018 2019 2020
Slide 21: Key messages
Key messages 1 Challenging macro environment 2 Growing market shares & revenues 3 Solid risk management capabilities 4 Positive development in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 22: Positive trends in digital indicators
Positive trends in digital indicators 4 73% 47 46 83% 68% 75% Jun22 Jun23 Jun22 Jun23 Jun22 Jun23 Digital customers NPS – digital customers Digital self-service (% of digital self-service) (% of digital customers – Retail banking) (Points – Retail Banking) 63% 65% 29% 29% 92% 95% Jun22 Jun23 Jun22 J
Slide 23: Over 11.9 million users in Plin and 600 thousand merchants in IzipayYa
Over 11.9 million users in Plin and 600 thousand merchants in IzipayYa 4 +57% YoY +84% YoY +2x YoY 11.9 1.8 6.5 7.5 1.0 3.0 Jun22 Jun23 Jun22 Jun23 2Q22 2Q23 Users (mn) Merchants (mn) Volume (S/ bn) +43% YoY +2x YoY 607 1.3 425 0.5 Jun22 Jun23 2Q22 2Q23 Merchants (th) Volume (S/ bn) 22
Slide 24: Retail customers reached 5.6 million
Retail customers reached 5.6 million 4 +14% YoY +22% YoY +25% YoY 5.6 2.2 2.3 172 5.5 162 4.9 1.9 138 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 Banking – retail customers (mn) Banking – digital customers (mn) Banking – commercial customers (th) 23
Slide 25: Key messages
Key messages 1 Challenging macro environment 2 Growing market shares & revenues 3 Solid risk management capabilities 4 Positive development in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 26: Continuous focus on efficiency
Continuous focus on efficiency 5 Variable expenses drive costs higher – Total expenses(2) Optimizing our distribution channels (Units) (S/ mn) 2020 Jun23 % Change Financial stores 215 158 -27% 1,847 1,696 1,491 ATMs 1,640 1,597 -3% 899 945 Correspondent 5,529 5,627 +2% agents(1) Sales force 899 1,18
Slide 27: Key messages
Key messages 1 Challenging macro environment 2 Growing market shares & revenues 3 Solid risk management capabilities 4 Positive development in digital indicators 5 Continuous focus on efficiency 6 ESG updates
Slide 28: ESG updates
ESGESG updates update 6 Environmental Social 180k new users 16k new clients 8 new webinars 3 new courses Co-host at climate risk New app for small management conference business owners #1 Interbank Talent Attraction & S/ 500 million sustainable Retention financing target for 2023 Interbank certified
Slide 29: Our way of working will enable us to achieve our goals
Our way of working will enable us to 6 achieve our goals Great Place to Work Our strategic values Top 20 in Peru for the past 21 years #3 in Latin America in 2022 Integrity Courage #4 in Peru in 2023 #5 for women in Peru in 2023 Innovation Collaboration #2 for millennials in Peru in 2022 #1 for work
Slide 30: 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 31: Appendix
Appendix 30
Slide 32: Strategic focus on consumer loans
Strategic focus on consumer loans Distinctive loan breakdown… …when compared to the banking system Banking System Commercial Commercial 44% 62% Mortgages Consumer Mortgages Consumer 37% loans Retail 46% loans Retail 63% 38% 54% 56% S/ 46.4BN S/ 26.1BN S/ 349.7BN S/ 134.4BN Leading position in consum
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 2017: 12.6% MS Jun23: 15.1% MS 2022: 14.9% Other 6% Bonds Demand 13.3% 7% Savings 22% 40% 9.6% Due to banks Deposits 7.9% 15% 78% 3.8% Time 32% CAGR 2017-22 2Q23 YoY In
Slide 34: Expanding market share in loans & deposits
Expanding market share in loans & deposits Breakdown of loans (S/ mn) Funding structure (S/ mn) %chg %chg %chg %chg 2Q22 1Q23 2Q23 QoQ YoY 2Q22 1Q23 2Q23 QoQ YoY Consumer loans Credit cards & other loans 8,793.0 10,364.5 10,839.0 4.6% 23.3% Deposits 43,600.4 46,268.4 45,637.5 -1.4% 4.7% (1) Payroll
Slide 35: Reactiva loan balances down 65% YoY, representing 2% of total portfolio
Reactiva loan balances down 65% YoY, representing 2% of total portfolio Reactiva Peru loan balances by segment (S/ bn) 2Q23 3.5 Segment YoY Corporate -87% Corporate: n.m. 1.7 Mid-sized: S/ 0.8 bn SME: S/ 0.4 bn Mid-sized -49% 1.2 SME -54% Total -65% 2Q22 1Q23 2Q23 34 SME Mid-sized Corporate
Slide 36: Manageable dollarization levels
Manageable dollarization levels Total loans Retail loans Commercial loans % PEN 67% 72% 88% 93% 56% 59% System 8% 4% 27% 25% 50% 53% 92% 96% 73% 75% 50% 47% 2Q18 2Q23 2Q18 2Q23 2Q18 2Q23 Retail loans breakdown Commercial loans breakdown Consumer Mortgages Corporate Medium Small & Micro 96% 97% 82% 9
Slide 37: Overview of Peruvian banking system
Overview of Peruvian banking system Steady loan growth – Banking system gross loans (S/ bn) Profitability recovering – Banking system net profit (S/ mn) ROE 4.0% 13.3% 17.3% 17.8% 16.9% CAGR +4.6% CAGR 350 357 359 350 2020-22 10,119 326 1.2% 7,218 238 228 237 215 5,043 5,289 222 2,112 129 134 11.4%
Slide 38: Interbank's income statement
Interbank’s income statement % chg % chg % chg Income Statement (S/ mn) 20 20 20 21 20 22 1H 22 1H 23 ' 21/ ' 20 ' 22/ ' 21 1H 23/ 1H 22 Interest income 3,865.1 3,510.8 4,670.3 2,090.0 2,895.9 (9.2%) 33.0% 38.6% Interest expenses (983.9) (811.0) (1,389.8) (536.4) (1,074.9) (17.6%) 71.4% 100.4% Gros
Slide 39: Interbank's balance sheet
Interbank’s balance sheet % chg % chg % chg Bal ance Sheet (S/ mn) 20 20 20 21 20 22 1H 22 1H 23 ' 21/ ' 20 ' 22/ ' 21 1H 23/ 1H 22 A s s ets Cash and due from banks 17,716.8 14,413.6 11,340.2 10,663.9 9,812.1 (18.6%) (21.3%) (8.0%) Investments, net 8,951.2 10,047.1 9,568.4 10,509.7 11,403.3 12.2% (
Slide 40: 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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