Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q2 2008 Earnings Presentation
20 slides from Intercorp Financial Services's earnings presentation, 2008
Slide 1: Second Quarter 2008 Earnings Presentation
Second Quarter 2008 Earnings Presentation
Slide 2: Highlights
Highlights Intergroup • Intergroup’s 2Q08 earnings per share were S/.1.03 (net income: S/.94.9mm), an increase of 37% YoY and 68% QoQ, mainly due to higher financial income • ROE was 27.9%, an increase from 16.8% in 1Q08, and flat compared to 2Q07 Interbank • Interbank’s net income rose 66% YoY, mai
Slide 3: Intergroup Financial Services <IFS>
INTERGROUP Intergroup FINANCIAL Financial SERVICES <IFS> Services 7
Slide 4: Net income increased 68% QoQ and 37% YoY
Net income increased 68% QoQ and 37% YoY Intergroup Interbank Interseguro S/. million S/. million S/. million 120 68.9% 50 ROE ROE ROE 45.00% 60 0 45 40.0% 37.0% 100 36.3% 36.3% 40.00% 27.9% 27.9% 19.1% 40 0 30.0% 40 35.00% 16.8% 35 20 0 80 27.7% 20.0% 73.6 75.6 95.0 30.00% 30.8 30 0. 10.0% 0 25.00%
Slide 5: Net earnings
Net earnings Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 2Q07 1Q08 2Q08 QoQ YoY Financial income 292 343 411 20% 41% Financial expenses -72 -93 -102 10% 41% Gross financial margin 219 250 308 23% 40% Provisions -34 -36 -40 11% 18% Net financial margin 186 214 268 25% 45% Fee
Slide 6: The contribution from subsidiaries increased 16% YoY and 15% QoQ
The contribution from subsidiaries increased 16% YoY and 15% QoQ Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 2Q07 1Q08 2Q08 QoQ YoY Interbank 44 71 73 3% 66% Interseguro 36 10 20 100% -45% Intergroup accounts: Return on investment portfolio 0 4 7 57.7% n.m. Exchange loss, ne
Slide 7: Interbank
INTERGROUP FINANCIAL SERVICES <IFS> Interbank 7
Slide 8: Interbank's net income grew 66% YoY, and 3% QoQ due to higher financial margin
Interbank’s net income grew 66% YoY, and 3% QoQ due to higher financial margin Profit and Loss Statement Summary S/. million %chg %chg 2Q07 1Q08 2Q08 QoQ YoY Financial income 233 318 352 11% 51% Financial expenses -61 -85 -91 8% 50% Gross financial margin 172 233 260 11% 51% Provisions -34 -36 -40 1
Slide 9: Performing loans grew 51% YoY and 20% QoQ
Performing loans grew 51% YoY and 20% QoQ Performing loans Breakdown of retail loans S/. million %chg %chg S/. million 2Q07 1Q08 2Q08 QoQ YoY Consumer loans: +51% Credit cards 750 874 1,060 21% 41% 7,229 Other consumer 1,083 1,402 1,574 12% 45% +20% Total consumer loans 1,833 2,276 2,635 16% 44% 6,0
Slide 10: Interbank has sought bank and capital market financing to fund high asset growth
Interbank has sought bank and capital market financing to fund high asset growth Funding Structure Deposit Breakdown S/. million %chg %chg 2Q07 1Q08 2Q08 +31% QoQ YoY 8,325 Deposits and obligations 7,747 6,343 7,747 8,325 7% 31% 7,281 692 Due to banks 826 1,481 2,404 62% 191% 704 6,818 489 Bonds and
Slide 11: NIM has declined as a result of higher reserve requirements
NIM has declined as a result of higher reserve requirements Net Interest Margin (%) 8.3% 8.1% 8.0% 7.8% 7.6% Interbank 7.0% 6.9% 6.8% 6.7% 6.7% Peruvian Banking System 2Q07 3Q07 4Q07 1Q08 2Q08 Source: ASBANC Intergroup 11 Management Presentation
Slide 12: Asset quality and coverage remain strong
Asset quality and coverage remain strong Loan Provision Expense PDL & Coverage Ratios S/. million 5.50% 400% 100 3.50% 337% 330% 90 3.0% 350% 2.7% 3.00% 4.50% 80 % loans* 268% 284% 2.3% 2.4% 300% 70 2.50% 2.0% 3.50% 234% 250% 60 2.00% 50 42.3 41.6 39.6 2.50% 200% 36.7 1.50% 40 1.8% 29.4 1.4% 150% 30
Slide 13: Net financial margin rose 59% YoY and 12% QoQ
Net financial margin rose 59% YoY and 12% QoQ Interbank Net Financial Margin S/. million %chg %chg 2Q07 1Q08 2Q08 QoQ YoY Financial Income: Loans 174 222 245 11% 40% Investments 29 48 40 -17% 37% Interest on due from banks and interbank fun 11 12 11 -7% 7% Exchange difference 18 36 55 53% 197% Total
Slide 14: Fee income increased 28% YoY and 17% QoQ as a result of higher activities
Fee income increased 28% YoY and 17% QoQ as a result of higher activities in credit cards, deposits and ATMs Fee Income from Financial Services, Net S/. million %chg %chg 2Q07 1Q08 2Q08 QoQ YoY Credit and debit card 24 27 32 17% 32% Fees for sevices 27 30 34 10% 26% Contingent operations 4 3 5 51% 3
Slide 15: A significant expansion in Interbank's network led to an increase in expenses
A significant expansion in Interbank’s network led to an increase in expenses Distribution network Operating expenses Units S/. million 1,300 ATMs250 Efficiency 58.1% 56.5% 53.7% ratio* 1,025 1,056 230 220 60.0% 1,100 1,010 210 184 824 40.0% 900 788 170 190 149 167 20.0% 164 700 161 170 120 120 Bran
Slide 16: Interseguro
INTERGROUP FINANCIAL SERVICES <IFS> Interseguro 7
Slide 17: Interseguro's net income declined 36% YoY, but increased 100% QoQ
Interseguro’s net income declined 36% YoY, but increased 100% QoQ Profit and Loss Statement Summary %chg %chg S/. million 2Q07 1Q08 2Q08 QoQ YoY Premiums 58.1 51.5 48.1 -7% -17% Premiums ceded -1.3 -1.6 -1.3 -19% 1% Fees -2.3 -1.2 -1.8 50% -22% Claims -38.6 -35.1 -29.1 -17% -25% Change in reserves -
Slide 18: Premiums declined 17% YoY and 7% QoQ due to decreases in annuities and disability
Premiums declined 17% YoY and 7% QoQ due to decreases in annuities and disability and survivor benefits Premiums by Business Line %chg %chg S/. million 2Q07 1Q08 2Q08 QoQ YoY Individual Life 4.3 5.1 5.2 2% 21% Annuities 34.8 33.8 30.5 -10% -12% Group Life 5.1 6.3 7.2 13% 39% Disability and survivor
Slide 19: A decline in investment income was offset by a gain on the sale of sovereign bonds
A decline in investment income was offset by an investment-related gain on the sale of sovereign bonds Investment Portfolio %chg %chg S/. million 2Q07 1Q08 2Q08 QoQ YoY Fixed Income 873.3 910.5 887.9 -2% 2% Equity and Mutual Funds 354.3 246.5 293.9 19% -17% Real estate 106.4 225.3 244.3 8% 130% Othe
Slide 20: Intergroup financial services
CJ Intergroup financial services
Intercorp Financial Services — Q2 2008 Earnings Presentation on 6ix