Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q4 2008 Earnings Presentation

23 slides from Intercorp Financial Services's earnings presentation

  1. Slide 1: Fourth Quarter 2008 Earnings Presentation

    Fourth Quarter 2008 Earnings Presentation

  2. Slide 2: Highlights

    Highlights Intergroup • Intergroup’s operating performance was strong in 2008. However, the global financial crisis and strict regulations on reserve requirements and provisioning led net earnings to decline 10% in 2008. • Net earnings grew 46% QoQ as a result of strong operating trends at Interbank

  3. Slide 3: Intergroup Financial Services

    INTERGROUP Intergroup FINANCIAL Financial SERVICES <IFS> Services 7

  4. Slide 4: Net income decreased 10% during 2008 due to a decline in earnings at Interseguro

    Net income decreased 10% during 2008 due to a decline in earnings at Interseguro Intergroup Interbank Interseguro S/. million S/. million S/. million 400 200 0 ROE ROE ROE 40.0% 31.9% 40.00% 180 350 31.3% 41.2% 28.2% 27.3% 26.0% 30.00%33.8% 0 30.0% 160 300 18.3% 270.4 0 277.3 20.0% 140 250 20.00% 24

  5. Slide 5: Net income increased 47% QoQ and decreased 6% YoY

    Net income increased 47% QoQ and decreased 6% YoY Intergroup Interbank Interseguro S/. million S/. million S/. million 120.0 0 40.0% ROE 40.00% ROE 100.0 30.2% 30.1% 0 30.0% 50.0 50 19.2% 23.6% 30.00% 16.9% 20.0% 0 11.7% 80.0 69.0 40.0 40 10.0% 20.00% 0 60.0 60.0 52.2 0.0% 30.0 10.00% 30 0 61.8 58.4

  6. Slide 6: Net earnings

    Net earnings Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 4Q07 3Q08 4Q08 QoQ YoY Financial income 326 378 419 11% 28% Financial expenses -85 -153 -143 -6% 69% Gross financial margin 241 226 276 22% 14% Provisions -26 -50 -107 116% 309% Net financial margin 215 176 168 -4% -22

  7. Slide 7: The contribution of both subsidiaries improved QoQ

    The contribution of both subsidiaries improved QoQ Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 4Q07 3Q08 4Q08 QoQ YoY Interbank 58 55 69 24% 18% Interseguro 7 -16 -7 n.m. n.m. Intergroup accounts: Return on investment portfolio 4 4 14 208% 229% Exchange loss, net -9 -1 1 n.m

  8. Slide 8: Interbank

    INTERGROUP FINANCIAL SERVICES <IFS> Interbank 7

  9. Slide 9: Interbank's net income rose 19% in 2008

    Interbank’s net income rose 19% in 2008 Profit and Loss Statement Summary S/. million %chg %chg 2006 2007 2008 08/07 07/06 Financial income 764 1,001 1,393 39% 82% Financial expenses -187 -263 -416 58% 122% Gross financial margin 577 737 978 33% 69% Provisions -127 -125 -232 86% 83% Net financial ma

  10. Slide 10: Net income increased 32% QoQ and 15% YoY

    Net income increased 32% QoQ and 15% YoY Profit and Loss Statement Summary S/. million %chg %chg 4Q07 3Q08 4Q08 QoQ YoY Financial income 283 322 402 25% 42% Financial expenses -75 -108 -131 21% 74% Gross financial margin 207 214 270 26% 30% Provisions -26 -50 -107 116% 309% Net financial margin 181

  11. Slide 11: Performing loans grew 51% YoY and 15% QoQ leading to significant gains in market share

    Performing loans grew 51% YoY and 15% QoQ leading to significant gains in market share Performing loans Breakdown of retail loans S/. million S/. million %chg %chg 4Q07 3Q08 4Q08 QoQ YoY +51% 9,176 +15% Consumer loans: Credit cards 842 1,244 1,421 14% 69% 7,957 Other consumer 1,280 1,717 1,806 5% 41

  12. Slide 12: Deposits increased 2.5% QoQ and 32.3% YoY

    Deposits increased 2.5% QoQ and 32.3% YoY Funding Structure Deposit Breakdown S/. million %chg %chg 4Q07 3Q08 4Q08 +32% QoQ YoY Deposits and obligations 7,281.2 9,397.2 9,629.8 2.5% 32.3% 9,630 Due to banks: 9,397 321 Short term 1,163.6 1,742.4 2,066.6 18.6% 77.6% 304 8,325 1,493 Long term 287.4 881

  13. Slide 13: NIM recovered in 4Q08

    NIM recovered in 4Q08 Net Interest Margin (%) 8.2% 7.9% 7.8% 7.0% 6.9% 6.9% Interbank 6.7% 6.7% 6.6% 6.4% Peruvian Banking System 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 Source: ASBANC Intergroup 13 Management Presentation

  14. Slide 14: Asset quality and coverage remain strong

    Asset quality and coverage remain strong Loan Provision Expense PDL & Coverage Ratios S/. million 140 130.7 16.00% 2.00% 400% 120 14.00% 35.0 337% 330% 350% 12.00% 100 1.50% 284% 291% 283% 300% 95.7 10.00% 80 8.00% 1.00% 250% 60 % loans* 53.5 6.0% 42.3 41.6 6.00% 1.2% 200% 1.1% 1.1% 1.0% 40 29.4 0.9

  15. Slide 15: Gross financial margin increased significantly, driven by higher interest on loans

    Gross financial margin increased significantly, driven by higher interest on loans Interbank Net Financial Margin S/. million %chg %chg 4Q07 3Q08 4Q08 QoQ YoY Financial Income: Loans 207 287 327 14% 58% Investments 29 17 26 56% -11% Interest on due from banks and interbank funds 13 12 10 -19% -22% E

  16. Slide 16: Fee income increased 36% YoY and 15% QoQ as a result of volume and transaction growth

    Fee income increased 36% YoY and 15% QoQ as a result of volume and transaction growth Fee Income from Financial Services, Net S/. million %chg %chg 4Q07 3Q08 4Q08 QoQ YoY Credit and debit card 28 35 38 9% 40% Fees for sevices 28 35 34 -3% 22% Contingent operations 4 6 7 20% 101% Fees for collection

  17. Slide 17: Operating expenses rose 3.8% QoQ

    Operating expenses rose 3.8% QoQ Distribution network Operating expenses Units S/. million ATMs Efficiency ratio* 1,700 270 1,500 1,401 250 270 64.8% 59.0% 58.1% 1,180 230 54.60% 1,300 207 220 1,010 1,025 1,056 210 1,100 184 189 40.0% 182 175 190 170 155 900 167 161 164 170 700 0.0% 120 Branches 150

  18. Slide 18: Interseguro

    INTERGROUP FINANCIAL SERVICES <IFS> Interseguro 7

  19. Slide 19: Interseguro's 2008 net income was affected by valuation losses

    Interseguro’s 2008 net income was affected by valuation losses Profit and Loss Statement Summary %chg %chg 2006 2007 2008 S/. million 08/07 07/06 Premiums 304.9 235.5 211.4 -10.2% -22.8% Premiums ceded -4.3 -5.2 -6.2 19.2% 20.9% Fees -8.3 -8.2 -7.1 -13.4% -1.2% Claims -127.8 -152.3 -123.1 -19.2% 19.

  20. Slide 20: Valuation losses led Interseguro to post a S/.7.3mm net loss in 4Q08

    Valuation losses led Interseguro to post a S/.7.3mm net loss in 4Q08 Profit and Loss Statement Summary %chg %chg 4Q07 3Q08 4Q08 S/. million QoQ YoY Premiums 58.9 57.5 54.3 -5.6% -7.9% Premiums ceded -1.1 -1.6 -1.7 11.3% 55.9% Fees -1.8 -2.0 -2.1 1.9% 15.8% Claims -43.9 -33.5 -25.4 -24.1% -42.1% Chan

  21. Slide 21: Premiums declined 6% QoQ due a 14% decrease in annuity sales

    Premiums declined 6% QoQ due a 14% decrease in annuity sales Premiums by Business Line %chg %chg 4Q07 3Q08 4Q08 S/. million QoQ YoY Individual Life 4.9 6.1 5.6 -7.4% 15.6% Annuities 31.5 38.2 32.7 -14.4% 3.7% Group Life 5.4 7.3 9.0 23.1% 68.0% Disability and survivor benefits 13.1 0.4 0.3 -34.1% -98

  22. Slide 22: The financial crisis affected the value of Interseguro's equity portfolio

    The financial crisis affected the value of Interseguro’s equity portfolio Investment Portfolio %chg %chg 4Q07 3Q08 4Q08 S/. million QoQ YoY Fixed Income 1,084.9 1,099.3 1,212.1 10.3% 11.7% Equity and Mutual Funds 247.6 235.2 220.7 -6.2% -10.9% Real estate 262.6 424.8 406.8 -4.2% 54.9% Others* 13.1 4

  23. Slide 23: Intergroup financial services

    CJ Intergroup financial services

Intercorp Financial Services — Q4 2008 Earnings Presentation on 6ix