Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q3 2010 Earnings Presentation

19 slides from Intercorp Financial Services's earnings presentation, November 2010

  1. Slide 1: Third Quarter 2010 Earnings Presentation

    Third Quarter 2010 Earnings Presentation

  2. Slide 2: Intergroup Financial Services

    Intergroup Financial Services 2

  3. Slide 3: Highlights

    Highlights Intergroup: • Intergroup’s recurring net earnings increased 20.3% QoQ and 15.3% YoY • When including non-recurring items, such as one-time investment gains and provision charges at Interbank, net earnings increased 8.5% QoQ and decreased 9.8% YoY Interbank: • Recurring net earnings increa

  4. Slide 4: Intergroup's recurring earnings increased 20.3% QoQ and 15.3% YoY

    Intergroup´s recurring earnings increased 20.3% QoQ and 15.3% QoQ Intergroup Interbank Interseguro Net income* Net income Net income S/. million ROE S/. million ROE S/. million ROE 37.4% 43.0% 36.5% 26.9% 180 29.1% 38.5% 28.7% 148.3 30.1% 28.4% 160 133.8 141.5 22.8 -10.9 129.2 123.3 18.8 140 22.9 12

  5. Slide 5: Net income

    Net income Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 3Q09 2Q10 3Q10 QoQ YoY Financial income 527.6 528.0 580.9 10.0% 10.1% Financial expenses -102.8 -105.9 -131.9 24.5% 28.3% Gross financial margin 424.8 422.1 449.0 6.4% 5.7% Provisions -84.9 -96.6 -104.3 7.9% 22.9% Net fi

  6. Slide 6: Interbank

    EJ Intergroup Financial Services

  7. Slide 7: Interbank's net income increased 38.3% QoQ and 9.5% YoY

    Interbank´s net income increased 38.3% QoQ an 9.5% YoY Profit and Loss Statement Summary S/. million % chg % chg 3Q09 2Q10 3Q10 QoQ YoY Financial income 473.6 470.7 533.8 13.4% 12.7% Financial expenses -93.0 -99.8 -108.1 8.4% 16.3% Gross financial margin 380.7 370.9 425.7 14.8% 11.8% Provisions -85.

  8. Slide 8: Loan growth remained strong, driven by Peru's solid economic momentum

    Loan growth remained strong, driven by Peru´s solid economic momentum Performing loans Breakdown of loans S/. million % chg % chg 3Q09 2Q10 3Q10 QoQ YoY S/. million Consumer loans: +19.6% Credit cards 1,447 1,550 1,632 5.3% 12.8% Other consumer 2,033 2,204 2,250 2.1% 10.7% 11,355 Total consumer loan

  9. Slide 9: Interbank funded its QoQ growth with bank loans

    Interbank funded its QoQ growth with bank loans Funding Structure Deposit Breakdown S/. million % chg % chg 3.3% 3Q09 2Q10 3Q10 QoQ YoY Deposits and obligations 11,253 12,621 11,627 -7.9% 3.3% 12,621 Due to banks 1,877 2,059 3,218 56.3% 71.5% 12,200 201 11,598 11,597 11,627 Bonds and obligations 505

  10. Slide 10: Gross financial margin increased 14.8% QoQ and 11.8% YoY

    Gross financial margin increased 14.8% QoQ and 11.8% YoY Interbank Net Financial Margin S/. million % chg % chg 3Q09 2Q10 3Q10 QoQ YoY Financial income: Loans 369.8 382.9 399.5 4.3% 8.0% Investments 67.2 41.5 86.4 107.9% 28.5% Interest on due from banks and interbanks funds 1.6 1.2 1.7 39.5% 6.3% Ex

  11. Slide 11: NIM remains significantly above the industry's average

    NIM remains significantly above the industry´s average Net Interest Margin (%) 9.8% 9.3% 9.0% 9.1% 9.1% 8.8% 8.8% 8.5% 8.9% 8.3% 8.3% 8.2% 8.1% 7.3% 7.1% 7.1% 7.0% 6.9% 7.1% 7.3% 7.1% 6.9% 7.1% 6.8% 6.8% 6.8% 7.0% 6.9% 6.7% 6.4% 6.6% 6.6% 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q201

  12. Slide 12: Asset quality and coverage remain strong, while recurring provisions decreased 8.8% QoQ

    Asset quality and coverage remain strong, while recurring provisions decreased 8.8% QoQ PDL & Coverage Ratios Loan Provision Expense S/. million Provision expense* Loans 3.7% 3.6% 140.0 3.7% 3.5% 3.2% 261.2% 266.6% 255.1% 252.9% 264.1% 1 3.50% 2.00% 3.1% 120.0 200.00% 104.3 2.50% 96.6 100.0 1.50% 10

  13. Slide 13: The efficiency ratio improved significantly QoQ

    The efficiency ratio improved significantly QoQ Fee income Operating expenses S/. million S/. million Fee income Efficiency Fee income / operating revenues 25.5% ratio* 23.3% 24.2% 22.7% 22.5% 52.0% 51.0% 48.5% 320 123.9 121.6 111.6 118.6 44.9% 44.6% 111.9 270 247.6 249.6 245.1 231.9 221.3 220 30.00

  14. Slide 14: Interbank's capitalization remained strong

    Interbank´s capitalization remained strong Tier I Tier II 16.0% 15.4% 5.2% 4.9% 11.5% 10.8% 10.3% 2.9% Regulatory 1.4% Minimum 2.7% 9.5% 9.8% 9.1% 10.8% 10.5% 8.9% 8.6% 8.1% (1) (1) 2007 2008 2009 2Q10 3Q10 (1) On April 2010 Interbank issued US$200 million in non-cumulative junior subordinated notes

  15. Slide 15: Interseguro

    EJ Intergroup 15 Financial Services

  16. Slide 16: Interseguro's net income rose 50.5% QoQ and 54.3% YoY

    Interseguro´s net income rose 50.5% QoQ and 54.3% YoY Profit and Loss Statement Summary S/. million % chg % chg 3Q09 2Q10 3Q10 QoQ YoY Premiums 57.7 74.6 178.7 139.5% 209.7% Premiums ceded -1.9 -1.7 -2.2 30.9% 17.6% Fees -2.4 -2.4 -2.4 0.4% -2.4% Claims -30.2 -31.7 -30.1 -5.1% -0.5% Change in reserv

  17. Slide 17: Premiums more than doubled QoQ and tripled YoY, driven by very strong annuity sales

    Premiums more than doubled QoQ and tripled YoY, driven by very strong annuity sales Premiums by Business Line S/. million % chg % chg 3Q09 2Q10 3Q10 QoQ YoY Individual Life 6.0 5.5 6.7 21.5% 11.5% Annuities 36.0 51.8 154.5 198.2% 329.7% Group Life 8.3 10.5 11.0 4.7% 31.9% Disability and survivor ben

  18. Slide 18: Investment income increased 44.1% QoQ and 59.4% YoY

    Investment income increased 44.1% QoQ and 59.4% YoY Investment Portfolio S/. million %chg QoQ %chg YoY 3Q09 2Q10 3Q10 Fixed Income 1,201.0 1,291.0 1,471.1 13.9% 22.5% Equity and Mutual Funds 182.0 173.1 196.0 13.2% 7.7% Real estate 426.2 445.0 489.6 10.0% 14.9% Others 5.2 4.4 4.3 -3.3% -17.5% TOTAL

  19. Slide 19: Intergroup Financial Services

    Intergroup Financial Services

Intercorp Financial Services — Q3 2010 Earnings Presentation on 6ix