Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q1 2010 Earnings Presentation
19 slides from Intercorp Financial Services's earnings presentation, 2010
Slide 1: First Quarter 2010 Earnings Presentation
First Quarter 2010 Earnings Presentation
Slide 2: Intergroup Financial Services
Intergroup Financial Services 2
Slide 3: Highlights
Highlights Intergroup: • Intergroup’s net earnings were S/. 138.9 million in 1Q10, nearly double the earnings reported in 1Q09 • This significant increase was driven by growth in the gross financial margin at Interbank, increased investment returns and premium sales at Interseguro, and lower provisi
Slide 4: Intergroup net income nearly doubled YoY, driven by strong performance from both subsidiaries
Intergroup s net income* nearly doubled YoY, driven by strong performance from both subsidiaries Intergroup Interbank Interseguro S/. million S/. million S/. million ROE ROE ROE 36.8% 38.6% 180 29.7% 160 33.6% 50 46.6% 159.9 160 19.3% 28.6% 26.4% 45 140 130.2 30.00% -10.00% 138.9 40 140 120 115.4 0.
Slide 5: Net Earnings
Net Earnings Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 1Q09 4Q09 1Q10 QoQ YoY Financial income 470.5 504.9 504.5 -0.1% 7.2% Financial expenses -160.9 -90.0 -92.1 2.4% -42.7% Gross financial margin 309.6 414.9 412.3 -0.6% 33.2% Provisions -91.9 -89.4 -78.9 -11.8% -14.1% Net
Slide 6: Interbank
Interbank EJ Intergroup Financial Services
Slide 7: Interbank net income increased 69.1% YoY
Interbank s net income increased 69.1% YoY Profit and Loss Statement Summary S/. million % chg % chg 1Q 09 4Q 09 1Q 10 QoQ YoY Financial income 447.0 441.6 455.6 3.2% 1.9% Financial expenses -149.4 -86.7 -89.0 2.7% -40.4% Gross financial margin 297.6 354.9 366.5 3.3% 23.2% Provisions -91.9 -89.4 -78
Slide 8: Interbank's market share in retail loans continues to increase
Interbank’s market share in retail loans continues to increase Performing loans Breakdown of loans S/. million % chg % chg 1Q 09 4Q 09 1Q 10 QoQ YoY S/. million +5.4% Consumer loans: Credit cards 1,476 1,459 1,495 2.5% 1.3% Other consumer 1,894 2,087 2,132 2.2% 12.6% Total consumer loans 3,371 3,546
Slide 9: Deposits remain stable
Deposits remain stable Funding Structure Deposit Breakdown S/. million % chg % chg 1Q 09 4Q 09 1Q 10 QoQ YoY 1.1% Deposits and obligations 11,471 11,598 11,597 0.0% 1.1% Due to banks 1,869 1,960 2,185 11.5% 16.9% 12,200 Bonds and obligations 482 506 500 -1.2% 3.7% 11,598 11,597 11,471 11,253 Interba
Slide 10: Gross financial margin increased 3.3% QoQ and 23.2% YoY
Gross financial margin increased 3.3% QoQ and 23.2% YoY Interbank Net Financial Margin S/. million % chg % chg 1Q 09 4Q 09 1Q 10 QoQ YoY Financial income: Loans 357.5 378.9 374.7 -1.1% 4.8% Investments 34.0 30.5 34.5 13.1% 1.6% Interest on due from banks and interbanks funds 3.8 0.9 0.8 -4.0% -78.2%
Slide 11: NIM remains significantly above the industry's average
NIM remains significantly above the industry’s average Net Interest Margin (%) 10.1% 9.6% 8.8% 8.2% 8.5% 7.8% 7.7% 7.3% 7.0% 7.1% 6.8% 6.9% 6.8% 6.7% 6.9% 6.6% 6.6% 6.4% 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 Interbank Industry 11
Slide 12: Asset quality remained strong, leading to a decline in provision expenses
Asset quality remained strong, leading to a decline in provision expenses PDL & Coverage Ratios Loan Provision Expense S/. million 140 4.5% 4.80% 4.2% 2.0% 4.30% 262.0% 261.2% 266.6% 120 3.7% 255.1% 300% 233.2% 109.2 3.4% 3.80% 100.5 3.2% 200% 100 91.4 3.30% 1.5% 82.9 82.1 100% 2.80% 80 0% 2.30% 1.0
Slide 13: Expense growth was moderate, and the efficiency ratio remained below 50%
Expense growth was moderate, and the efficiency ratio remained below 50% Fee income Operating expenses S/. million S/. million Fee income Efficiency Fee income / operating revenues ratio* 53.5% 25.5% 25.5% 47.4% 44.9% 52.0% 48.5% 23.3% 285 70.00% 22.7% 121.6 21.5% 30.00% 111.9 111.6 247.6 231.9 -10.
Slide 14: Interbank's capitalization has been significantly strengthened
Interbank’s capitalization has been significantly strengthened Tier I Tier II 17.5% 5.7% 12.8% 11.5% 10.8% 2.9% 10.3% Regulatory 2.9% Minimum 9.1% 1.4% 9.5% 2.7% 11.8% 9.9% 8.9% 8.6% 8.1% 2007 2008 2009 1Q10 1Q10 Proforma* *Adjusted for a Junior Subordinated bond issue of S/. 568.2 million closed on
Slide 15: Interseguro
Interseguro EJ Intergroup 45 Financial Services
Slide 16: Interseguro reported a fivefold YoY increase in net income
Interseguro reported a fivefold YoY increase in net income Profit and Loss Statement Summary S/. million 1Q09 4Q09 1Q10 %chg QoQ %chg YoY Premiums 58.0 53.2 64.0 20.1% 10.3% Premiums ceded -1.9 -2.0 -2.5 24.5% 33.3% Fees -2.3 -2.2 -2.4 7.5% 3.8% Claims -29.1 -29.7 -29.7 0.0% 2.4% Change in reserves
Slide 17: Premiums increased 20.1% QoQ and 10.3% YoY, mainly due to higher annuity sales
Premiums increased 20.1% QoQ and 10.3% YoY, mainly due to higher annuity sales Premiums by Business Line S/. million 1Q09 4Q09 1Q10 %chg QoQ %chg YoY Individual Life 6.1 5.5 5.8 5.8% -4.3% Annuities 34.3 31.0 38.5 24.2% 12.2% Group Life 10.8 10.1 11.8 16.6% 8.8% Disability and survivor benefits 0.2
Slide 18: Excluding non-recurring gains, investment income remains strong
Excluding non-recurring gains, investment income remains strong Investment Portfolio S/. million 1Q09 4Q09 1Q10 %chg QoQ %chg YoY Fixed Income 1,257.8 1,248.6 1,260.4 0.9% 0.2% Equity and mutual funds 173.3 154.3 154.6 0.2% -10.8% Real estate 388.6 461.1 488.6 6.0% 25.7% Others 5.1 5.5 12.4 124.7% 1
Slide 19: Intergroup Financial Services
Intergroup Financial Services
Intercorp Financial Services — Q1 2010 Earnings Presentation on 6ix