Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q3 2017 Earnings Presentation
32 slides from Intercorp Financial Services's earnings presentation, November 2017
Slide 1: Intercorp Financial Services Third Quarter 2017 Earnings Presentation
Intercorp Financial Services Third Quarter 2017 Earnings Presentation
Slide 2: Highlights 3Q17
Highlights 3Q17 IFRS Higher loan growth than the market on low credit growth environment Performing loans grew 2.1% QoQ and 4.1% YoY, reaching an 11.4% market share in 3Q17; while deposits grew 1.1% YoY, with an 11.5% market share in 3Q17 NIM was 5.7% in 3Q17 Interbank Cost of risk was 3.0% in
Slide 3: IFS key indicators 3Q17
IFS key indicators 3Q17 IFRS Intercorp Financial Services' key indicators S/ million 3Q16 2Q17 3Q17 %chg QoQ %chg YoY Net interest and similar income 657.5 642.1 668.3 4.1% 1.6% Fee income from financial services, net 219.0 218.2 240.4 10.2% 9.8% Results Profit for the period 208.7 215.0 223.6 4.0%
Slide 4: IFS 3Q17 net profit increased 4.0% QoQ and 7.2% YoY
IFS 3Q17 net profit increased 4.0% QoQ and 7.2% YoY IFRS Interbank Inteligo Net profit in S/ million Net profit in S/ million ROAE 22.0% 19.6% 20.0% ROAE 33.7% 32.8% 25.3% +2.9% -12.1% 56 222 209 228 48 43 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Interseguro IFS Net profit in S/ million Net profit in S/ millio
Slide 5: Interbank
CJ Intercorp Financial Services
Slide 6: Interbank's 3Q17 P&L analysis
Interbank’s 3Q17 P&L analysis IFRS Net interest and similar income Loan provision expense S/ million S/ million NIM 5.9% 6.0% 5.7% Cost of Risk 2.8% 3.2% 3.0% NIM on 9.9% 9.5% 9.4% Loans +12.4% +0.1% 585 214 570 571 202 180 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Total other income Other expenses S/ million S
Slide 7: Performing loans grew 2.1% QoQ and 4.1% YoY
Performing loans grew 2.1% QoQ and 4.1% YoY Performing loans Breakdown of loans S/ million S/ million %chg %chg 3Q16 2Q17 3Q17 QoQ YoY Consumer loans: +4.1% Credit cards 3,953.9 3,759.6 3,726.8 -0.9% -5.7% Other consumer 4,482.1 4,662.2 4,760.5 2.1% 6.2% 25,588 26,134 Total consumer loans 8,436.0 8,
Slide 8: Retail deposits increased 2.3% QoQ and 5.9% YoY
Retail deposits increased 2.3% QoQ and 5.9% YoY Funding structure Funding breakdown S/ million S/ million %chg %chg 3Q16 2Q17 3Q17 QoQ YoY Gross Loans Deposits 102.2% 103.1% 105.3% Deposits* 25,529.9 25,813.6 25,819.1 0.0% 1.1% Retail 11,275.8 11,662.2 11,935.7 2.3% 5.9% Commercial (1) 14,254.1 14,1
Slide 9: Total PDL ratio remained below the system's average in 3Q17
Total PDL ratio remained below the system’s average in 3Q17 Local GAAP & IFRS figures PDL vs. System Loan provision expense vs. System Interbank System Interbank System Interbank Coverage 177.0% 172.0% 170.3% Ratio 3.1% 2.9% 3.1% 2.3% 2.0% 2.0% 2.6% 2.8% 2.8% 2.8% 3.1% 3.1% 3Q16 2Q17 3Q17 3Q16 2Q17
Slide 10: De-dollarization continued in the retail portfolio and SMEs
De-dollarization continued in the retail portfolio and SMEs Local GAAP figures Total loans Retail loans Commercial loans %PEN System 67.5% 67.2% 84.9% 86.9% 58.4% 56.6% 9.1% 7.7% 26.9% 25.9% 47.5% 46.6% 90.9% 92.3% 73.1% 74.1% 52.5% 53.4% 3Q16 3Q17 3Q16 3Q17 3Q16 3Q17 Retail loans breakdown Commerci
Slide 11: 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 15.2% 15.0% 15.8% 15.8% 15.8% 20.00% 17.1% 16.6% 16.1% 16.5% 15.9% 15.00% 5.2% 4.9% 4.9% 5.4% 5.2% +1.9% Additional Regulatory Capital Requirement 10.00% 10.0% Total Regulatory Minimum CET1: 11.9% 11.7% 11.6%
Slide 12: Interseguro
Interseguro CJ Intercorp Financial Services
Slide 13: Interseguro's 3Q17 premiums analysis
Interseguro’s 3Q17 premiums analysis IFRS Net premiums by business unit Annuities net premiums S/ million S/ million +41.9% +23.5% 105 168 7 14 146 136 81 12 32 12 49 74 7 2 53 23 50 26 42 21 29 105 74 81 25 21 24 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Annuities Retail Insurance Individual Life Disability Pr
Slide 14: Net premiums increased QoQ and YoY driven by Annuities
Net premiums increased QoQ and YoY driven by Annuities Net premiums Adjustment of technical reserves S/ million S/ million Annuities Negative 21.5% 23.2% 26.2% discount rate 79 29 44 market share impact 168 164 156 136 146 4 14 3 7 12 12 49 101 50 53 7 156 0 147 105 1 74 81 94 3Q16 2Q17 3Q17 3Q16 2Q
Slide 15: Interseguro's investment portfolio grew 2.8% QoQ and 7.8% YoY
Interseguro’s investment portfolio grew 2.8% QoQ and 7.8% YoY Investment portfolio Results from investments(1) S/ million S/ million ROIP 7.8% 5.3% 8.8% +7.8% 6,074 107 76 103 5,911 5,634 786 11 12 783 764 9 497 507 21 523 3 20 20 4,631 4,781 74 4,347 67 55 -2 -4 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Fixed
Slide 16: Update of Sura acquisition and financing
Update of Sura acquisition and financing
Slide 17: Update of Sura acquisition and financing
Update of Sura acquisition and financing Structure Summary of terms + Wealth Universal bank Life insurance & retirement annuities management Timeline Allocation by region Announcement of agreement to acquire 100% of Seguros Sura and APAC Hipotecaria Sura (SPA signed May 31, 2017) 2% SBS approval
Slide 18: Inteligo
Inteligo CJ Intercorp Financial Services
Slide 19: Inteligo's 3Q17 P&L analysis
Inteligo’s 3Q17 P&L analysis IFRS Net interest and similar income Fees from financial services S/ million S/ million +14.9% -9.2% 31 29 28 25 23 20 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Other income Other expenses S/ million S/ million -16.1% +19.7% 24 21 20 20 18 15 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 19 19
Slide 20: Inteligo's key indicators
Inteligo’s key indicators AUM + Deposits Loans S/ million S/ million 0.0% -5.7% 14,605 14,684 14,606 1,708 1,651 1,611 3,139 2,866 2,774 11,465 11,818 11,831 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Deposits AUM Revenues Net profit S/ million S/ million Fee (1) AUMs 1.1% 0.9% 0.9% ROAE 33.7% 32.8% 25.3% -4.1%
Slide 21: Summary
CJ Intercorp Financial Services
Slide 22: Takeaways
Takeaways Interbank: Higher loan growth than the market on low credit growth environment Performing loans grew 2.1% QoQ and 4.1% YoY, mainly due to higher activity in the commercial portfolio 2.3% QoQ growth in retail deposits led to a 20 bps gain in market share, to 12.9% Cost of risk was 3
Slide 23: Appendix
Appendix CJ Intercorp Financial Services
Slide 24: Relevant net income
Relevant net income* Local GAAP & IFRS Interbank - Local GAAP Interseguro - Local GAAP Inteligo - IFRS Net profit in S/ million Net profit in S/ million Net profit in S/ million ROAE 21.9% 20.9% 20.2% ROAE 32.1% 26.5% 17.0% ROAE 33.7% 32.8% 25.3% +5.1% -15.5% -12.1% 211 216 222 56 31 48 26 43 22 3Q1
Slide 25: IFS 3Q17 P&L
IFS 3Q17 P&L IFRS Intercorp Financial Services' P&L statement S/ million %chg %chg 3Q16 2Q17 3Q17 QoQ YoY Interest and similar income 935.6 919.3 947.8 3.1% 1.3% Interest and similar expense -278.1 -277.2 -279.4 0.8% 0.5% Net interest and similar income 657.5 642.1 668.3 4.1% 1.6% Provision for loan
Slide 26: Interbank's profits increased 9.0% QoQ and 2.9% YoY mainly due to higher fee income
Interbank’s profits increased 9.0% QoQ and 2.9% YoY mainly due to higher fee income from financial services IFRS Banking Segment's P&L Statement S/ million %chg %chg 3Q16 2Q17 3Q17 QoQ YoY Interest and similar income 830.6 845.1 835.3 -1.2% 0.6% Interest and similar expenses -260.2 -260.6 -264.3 1.4
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 (3Q17) S/ million S/ million +2.9% 2 2 1 222 209 228 101 104 3Q16 2Q17 3Q17 222 228 Net profit – Local GAAP S/ million +5.1% Net profit (SBS) Net interest and Fee income from Provision for loan Net
Slide 28: Interseguro's results in 3Q17 were negatively impacted by discount rate impacts on technical reserves
Interseguro’s results in 3Q17 were negatively impacted by discount rate impacts on technical reserves Insurance Segment's P&L Statement S/ million %chg %chg 3Q16 2Q17 3Q17 QoQ YoY Net Interest and similar income 67.4 56.3 74.5 32.3% 10.5% Fee income from financial services, net -0.7 -0.7 -0.7 4.3% 1
Slide 29: 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 (3Q17) S/ million S/ million 25 17 6 -29 -44 -79 -12 22 -38 33 -54 33-119 3Q16 2Q17 3Q17 Adjustment of technical reserves resulting from -57 changes in discount rate -38 Net profit – Local GAAP
Slide 30: Interseguro's 3Q17 net profit bridge to IFRS
Interseguro’s 3Q17 net profit bridge to IFRS Local GAAP vs. IFRS S/ million Different discount rates in valuation of DCF RE investments resulted in a higher result in SBS GAAP Different stocks of Adjustment on the Assets and Liabilities cost of previously in IFRS compared to impaired instruments SBS
Slide 31: Inteligo's 3Q17 net profit decreased 23.4% QoQ and 12.1% YoY
Inteligo’s 3Q17 net profit decreased 23.4% QoQ and 12.1% YoY Wealth Management Segment's P&L Statement S/ million %chg %chg 3Q16 2Q17 3Q17 QoQ YoY Interest and similar income 34.7 39.2 36.0 -8.1% 3.9% Interest and similar expenses -14.9 -14.2 -13.3 -6.5% -10.7% Net interest and similar income 19.8 2
Slide 32: Fl _—_._ Financial Services
Fl _—_._ Financial Services
Intercorp Financial Services — Q3 2017 Earnings Presentation on 6ix