Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Intergroup Financial Services — Investor Presentation (May 2009)
29 slides from Intercorp Financial Services's investor presentation, May 2009
Slide 1: Management Presentation May 2009
Management Presentation May 2009
Slide 2: Offer restrictions disclaimer
This presentation is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission, or an exemption from registration. Intergroup and its aff
Slide 3: Investment Highlights
Investment Highlights 1. Peru: Best Performing Economy in Latin America 2. Strong and Growing Financial System 3. Leading Franchise in Financial Services 4. Management Team With Deep Domestic and International Experience 5. Demonstrated Ability to Deliver Results Intergroup 3 Management Presentation
Slide 4: Intergroup – A Leading Financial Services Company in Peru
Intergroup – A Leading Financial Services Company in Peru Float 72.1% 27.9% 99.3% 100.0% # 2 provider of consumer loans # 2 provider of annuities # 1 provider of credit card financing # 4 insurance company by total premiums # 4 bank by total loans and deposits Extensive retail network:
Slide 5: Intergroup – Financial Highlights
Intergroup – Financial Highlights Intergroup Financial Highlights (S/. million) 2005-2009 2007 2008 2009 IQ CAGR Total Assets 11,958 16,639 17,449 22.6% Total Loans (1) 6,059 9,176 9,588 26.5% Retail Loans (1) (2) 2,943 4,012 4,593 27.2% Total Deposits 7,261 9,597 11,319 25.5% Shareholder' Equity (3
Slide 6: 1. Peru: Best Performing Economy in Latin America
1. Peru: Best Performing Economy in Latin America Intergroup 6 Management Presentation
Slide 7: Despite the Global Slowdown, Peru Continues to Show a Solid Economic Performance
Despite the Global Slowdown, Peru Continues to Show a Solid Economic Performance GDP Growth (% YoY) Responsible Fiscal Policy 3.1% 9.8% Fiscal Balance / GDP (%) 9.0% 2.1% 1.8% 7.6% 6.7% 5.0% 5.1% 4.0% 2001 2002 2003 2004 2005 2006 2007 2008 -0.5% -1.1% -1.6% -2.1% -2.6% 2002 2003 2004 2005 2006 2007
Slide 8: And is in a Stronger Position than Most Countries in the Region
And is in a Stronger Position than Most Countries in the Region Fastest Growing Economy in the Region Price Stability GDP Growth (% YoY) Inflation (% YoY) 42.0 9.8% 31.4 2008 2009E 2008 2009E 6.8% 5.9% 3.8% 3.5% 14.0 3.0% 1.8% 8.6 8.7 8.4 5.7 6.7 7.0 7.2 6.0 5.1 0.0% 0.1% 3.5 4.2 2.5 4.6 2.2 2.0 MEX
Slide 9: 2. Strong and Growing Financial System
2. Strong and Growing Financial System 10 Intergroup 9 Management Presentation
Slide 10: Strong Fundamentals Driving Profitable Growth in Banking
Strong Fundamentals Driving Profitable Growth in Banking* Performing Loans (S/. billion) ROE (%) (2) 2002-2009 Retail Loans (1) Other Loans CAGR 31.0% 89.9 89.0 17.3% 27.9% 27.7% 22.7% 65.8 21.5% 68.6% 17.7% 49.6 69.6% 42.1 67.3% 30.8 32.9 32.0 33.5 11.6% 68.0% 10.8% 69.1% 8.5% 72.1% 79.3% 77.0% 31.
Slide 11: Underpenetrated Banking and Insurance Sectors
Underpenetrated Banking and Insurance Sectors Retail Loan Penetration (1) Credit Cards / Inhabitant Mortgage Loans / GDP (%) Consumer Loans / GDP (%) 52.9% 4.2 34.1% 18.9% 15.3% 13.4% 14.3% 1.1 1.0 0.9 9.0% 8.1% 4.2% 0.5 4.1% 0.3 2.0% 2.4% 1.6% 2.6% 2.3% 2.7% 0.2 0.1 Spain U.S. Brazil Chile Colombia
Slide 12: Growing and Profitable Insurance Sector
Growing and Profitable Insurance Sector Total Assets (S/. million) Total Premiums (S/. million) ROE (%) (1) Annuities 2001-2009 Other Life Insurance CAGR 13,222 5000 12,753 4900 Non-Life Premiums 2001-2009 CAGR 4800 4,598 12.1% 16.8% 4700 4600 4500 4,331 4400 10,970 4300 605 4200 17.8% 4 10 0 4000 3
Slide 13: 3. Leading Franchise in Financial Services
3. Leading Franchise in Financial Services Intergroup 13 Management Presentation
Slide 14: Strategic Focus on Retail Banking and Annuities
Strategic Focus on Retail Banking and Annuities Asset Individual Retail / Commercial Capital Retail Banking Management Annuities Life Mandatory Traffic Banking Markets and Other Insurance Insurance 48% of Loans(1) 52% of Loans(1) 59% of 30% of 11% of 68% of Financial 32% of Financial Premiums Premiu
Slide 15: Clear and Consistent Strategy
Clear and Consistent Strategy Elements of Our Strategy Key Objectives Capitalize on expanded distribution network: Convenience •Access number of financial stores and ATMs doubled from 2006 to 2008 •Agility Continue developing electronic banking and alternative distribution channels Superior
Slide 16: Interbank: Evolving Focus From Commercial to Retail
Interbank: Evolving Focus From Commercial to Retail CAGR S/. million 9,176 IBK System Retail Commercial 23.0% 15.1% 9,176 52.2% 51.4% 6,059 17.7% 12.4% 4,118 48.3% 3,744 2,870 3,057 2,625 53.1% 54.8% 60.6% 48.6% 47.8% 31.7% 27.5% 68.7% 75.3% 51.7% 45.2% 46.9% 31.3% 39.4% 24.7% 2002 2003 2004 2005 20
Slide 17: Interbank: Leading Player in Consumer Banking
Interbank: Leading Player in Consumer Banking Consumer Loans (S/. million) Retail Credit Card Loans (S/. million) 3,371 1,476 3,227 1,421 4% .1 25 .9 % m 36 s te Sy em . st vs y % .S 34 .3 vs % GR 50 .0 CA 2,123 R G 849 CA 717 1,587 1,278 552 1,018 414 836 326 629 216 398 78 2001 2002 2003 2004 2005
Slide 18: 4. Management Team With Deep Domestic and International Experience
4. Management Team With Deep Domestic and International Experience Intergroup 18 Management Presentation
Slide 19: Experienced and Recognized Management Team
Experienced and Recognized Management Team Experience Name Position International Years in Sector Carlos Rodriguez-Pastor Chairman Intergroup and Interbank 26 Jorge Flores CEO Intergroup and Interbank 26 Juan Carlos Vallejo CEO Interseguro 20 Jose Antonio Rosas CFO Intergroup 4 Miguel Uccell
Slide 20: Strong Corporate Governance
Strong Corporate Governance Intergroup: 5 members (3 independent) Board of Interbank: 11 members (6 independent) Directors Interseguro: 7 members (3 independent) Intergroup Audit Committee (3 board members) Interbank Executive Committee (4 board members and CEO of Interbank) Committees
Slide 21: 5. Demonstrated Ability to Deliver Results
5. Demonstrated Ability to Deliver Results Intergroup 21 Management Presentation
Slide 22: Strong Asset Growth
Strong Asset Growth Intergroup´s Total Assets Interbank´s Loan Portfolio Interseguro´s Assets (S/. million) (S/. million) (S/. million) Commercial Credit cards 1,898 Other consumer Mortgage .8 % 1,857 .5% 12 28 17,449 GR R 16,639 9588 CA 1,668 C AG 9,176 % 3 .6 1222 3 1,465 AGR 1,162 C 1894 1,284 11
Slide 23: Stable, Solid Funding
Stable, Solid Funding Funding Based on Core Deposits A Solid Capital Base Deposits Lines of Credit Long Term Loans Interbank: Regulatory capital / Risk - weighted Others assets 13,900 13,612 13,800 13,700 13,600 13,104 13,500 13,400 13,300 4.2% 13,200 13,100 13,000 12,900 12.1% 12,800 12,700 12,600
Slide 24: Consistent Revenue Growth
Consistent Revenue Growth Gross Financial Margin and NIM Fee Income From Financial Services S/. million S/. million 1200 8.20% 8.20% 8.50% .7% 7.40% 19 7.60% GR 341 8.10% CA 7.50% 7.90% 1000 978 % 6.50% 271 .7 20 R 800 737 AG 5.50% 222 .0% C .5 % 199 50 577 27 GR 600 GR 4.50% CA CA 461 3.50% 400 102
Slide 25: Solid Asset Quality
Solid Asset Quality PDL & Coverage Ratios Loan Provision Expense S/. million S/. million 337.0% 283.1% 7.50% 235.4% 261.5% 300.00% 6.50% 176.1% 200.00% 2 6 0 5 . 0 0 % 4.2% 3.0% 2.6% 2.5% 3.1% 2.7% 5.50% 100.00% 232 18 0 4.50% 0.00% 2.9% 0 . 0 0 % -100.00% 127 125 3.50% 116 1.9% 90 2.50% -200.00%10
Slide 26: Expanding Distribution Network
Expanding Distribution Network Interbank’s Distribution Network Intergroup’s Operating Expenses Units S/. million ATMs 1,400 1400 1392 54.7% 51.2% 50.9% 57.4% 210 53.9% 212 950 1200 207 53.7% 1,010 190 850 784 40.0% 750 1000 170 650 587 20.0% 800 701 161 150 550 465 600 479 Branches 450 408 0.0% 497
Slide 27: Significant Growth in Revenues and Earnings
Significant Growth in Revenues and Earnings Net Income - Interbank Net Income - Interseguro Net Income* - Intergroup ROE ROE ROE S/. million S/. million S/. million 1 00 3 5 0 31.8% 31.2% 36.3% 3 8 0 4 0 .0 % 27.4% 22.1% 3 0 .0 % 9 0 28.6% 27.8% 26.1% 3 0 .0 % 21.1% 3 00 3 0 .0 % 3 3 0 79 8 0 18.5%
Slide 28: Key Takeaways
Key Takeaways Peru: Best Performing Economy in Latin America Strong and Growing Financial System Proven Track Record and Focused Strategy Leading Franchise in Financial Services Management Team With Deep Domestic and International Experience Demonstrated Ability to Deliver Results Intergroup 28 Mana
Slide 29: Py | In terban\, yy
Py | In terban\, yy i ' | ere f e% | | tt gd Intergroup financial services Lb per } ll 4 \ 4 \ \ \ \ \ \ \
Intergroup Financial Services — Investor Presentation (May 2009) on 6ix