22 slides from Intercorp Financial Services's investor presentation, October 2020
Slide 1: Investor Update October 2020
Investor Update October 2020
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: Agenda
Agenda Key Financial Takeaways messages highlights 2
Slide 4: Agenda
Agenda Key Financial Takeaways messages highlights 3
Slide 5: Key messages
Key messages 1 2 3 4 5 Strong liquidity and Activity recovering from Digital trends High provisions Double-digit reduction capital position COVID-19 lows continue to support following a precautionary in expenses due to cost Interbank’s strategy approach containment measures 4
Slide 6: Strong liquidity levels in 2Q20 with market share gains in deposits
Strong liquidity levels in 2Q20 with market share 1 gains in deposits Total deposits Loan to deposit ratio (LDR) S/ million % as of August 31, 2020 Market 12.9% 12.5% 13.2% Share 109% 99% 100% 100% System: 100% +25.5% 40,846 32,548 34,502 2Q19 1Q20 2Q20 BBVA Interbank BCP Scotiabank Loan to deposit
Slide 7: Strong capital base to face COVID-19
1 Strong capital base to face COVID-19 Key initiatives Capital ratio evolution Banking Solvency System 14.8% 14.3% 14.8% 15.2% TCR • Capitalization of 2019 earnings to strengthen 12.0% CET1 and TCR ratio, and capitalized 1Q20 16.1% 16.1% 16.7%(1) 16.6% 11.1% 11.1% 10.6% earnings • Called USD 200 mil
Slide 8: Economic activity in Peru recovering from low levels due to lockdown
Economic activity in Peru recovering from low 2 levels due to lockdown GDP growth Mining and fuel GDP Electricity subsector (YoY % Chg) (YoY % Chg) index (YoY % Chg) 3.8% 4.0% 6.0% 2.4% 11.0% -6.2% -2.8% -14.4% -11.2% -6.1% -21.8% -12.6% -12.4% 3.1% 3.9% TB -25.1% -42.3% -45.8% -29.5% U Jan Feb Mar
Slide 9: Monthly operating trends indicate positive developments in activity for 3Q20
Monthly operating trends indicate positive 2 developments in activity for 3Q20 Credit and debit cards turnover (Index; 100 = Feb20) Payroll deduction loans disbursements (Index; 100 = Feb20) 100 100 83 77 64 50 38 8 Feb20 Apr20 Jun20 Aug20 Feb20 Apr20 Jun20 Aug20 Mortgages disbursements (Index; 100
Slide 10: We have helped our customers through the Reactiva Peru Program
We have helped our customers through the 2 Reactiva Peru Program Commercial loans Corporate loans S/ million, Local GAAP S/ million, Local GAAP +39.9% +16.3% 20,545 22,390 9,945 16,000 6,060 3,8338,549 758 16,000 9,187 16,330 Mar20 Aug20 Mar20 Aug20 Mid-sized loans SME loans S/ million, Local GAAP S
Slide 11: Digital KPIs continue to show positive trends
3 Digital KPIs continue to show positive trends Digital users 100% digital customers Business accounts % of digital users 100% digital customers N° and % of business accounts opened digitally (thousand) 44% 70% 81% 74% 52% 69% 42% 5 31% 60% 3 1 Jun19 Mar20 Jun20 Jun19 Mar20 Jun20 Jun19 Mar20 Jun20 D
Slide 12: 3.7 mm retail customers and 1 mm 100% digital customers with improving NPS
3.7 mm retail customers and 1 mm 100% digital 3 customers with improving NPS Retail customers Net promoter score (NPS) Thousand Score +15.1% +8p 3,590 3,724 39 36 3,236 31 Jun19 Mar20 Jun20 Jun19 Mar20 Jun20 100% digital customers NPS 100% digital customers Thousand Score +87.1% +12p 1,023 49 46 808
Slide 13: We have rescheduled ~30% of our loan portfolio
4 We have rescheduled ~30% of our loan portfolio Performing loans Loan rescheduling S/ billion S/ billion 40.7 Clients 343 459 31% 4.4% (Thousand) at System Most (1.8) Level(1) Small businesses Rescheduled exposed 7.8% balance (%) 29% 29% (3.2) Self-employed workforce 12.1 retail loans 10.7 27.5% Pr
Slide 14: High provisions following a precautionary approach
High provisions following a precautionary 4 approach Cost of risk Past due loans Coverage 173.4% 173.6% 229.4% ratio 5.8% 4.5% 2.7% 2.8% 2.4% 3.3% 2.5% 2.6% 2Q19 1Q20 2Q20 1H19 1H20 2Q19 1Q20 2Q20 Cost of risk – Retail banking Cost of risk – Commercial banking 10.1% 7.8% 1.0% 0.7% 0.6% 0.7% 5.6% 4.1
Slide 15: Double-digit reduction in expenses due to cost containment measures
Double-digit reduction in expenses due to cost 5 containment measures Optimizing our distribution channels Reducing total expenses(3) following cost containment measures Units 2018 Jun20 % Change Financial -14.5% 270 233 -16% stores ATMs 1,975 1,576 -20% 390 402 608 333 564 Correspondent 2,506 3,276
Slide 16: Agenda
Agenda Key Financial Takeaways messages highlights 15
Slide 17: Sustained loan growth supported by appropriate funding
Sustained loan growth supported by appropriate funding Total gross loans Total deposits S/ mm S/ mm 40,316 36,166 41,467 32,518 33,882 35,610 27,876 31,323 33,137 30,595 2017 2018 2019 Jun19 Jun20 2017 2018 2019 Jun19 Jun20 Total assets Net shareholders’ equity S/ mm S/ mm 63,106 52,303 49,708 45,32
Slide 18: High NIM and solid profitability pre COVID-19
High NIM and solid profitability pre COVID-19 Total revenues (1) NIM and risk-adjusted NIM (2) (3) S/ mm 4,093 3,614 3,346 5.9% 5.9% 6.1% 5.2% 1,950 1,891 3.9% 4.2% 4.2% 2017 2018 2019 1H19 1H20 2017 2018 2019 1H20 2017 2018 2019 NIM Risk-adjusted NIM Net profit evolution ROE S/ mm 1,222 21.3% 22.0%
Slide 19: Agenda
Agenda Key Financial Takeaways messages highlights 18
Slide 20: Takeaways
Takeaways Overall activity Capital and liquidity should continue to recover NIM will continue to be to remain at sound Reactiva 2 loans impacted despite levels and well above to continue to lower cost of funds regulatory requirements boost commercial loans Strict cost containment Voluntary provision
Slide 21: Summary
Summary 1 2 3 4 5 Strong liquidity and Activity recovering from Digital trends High provisions Double-digit reduction capital position COVID-19 lows continue to support following a precautionary in expenses due to cost Interbank’s strategy approach containment measures 20
Slide 22: Slide 22