Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q2 2007 Earnings Presentation
20 slides from Intercorp Financial Services's earnings presentation, August 2007
Slide 1: Earnings Presentation Second Quarter 2007
Earnings Presentation Second Quarter 2007 August 2007
Slide 2: Highlights
Highlights ? Intergroup’s 2Q07 net income was S/.69mm, a 52% increase over 2Q06, due mainly to higher financial income in both subsidiaries ? ROE was 27.9%, a decline from 2Q06 and 1Q07, due to a higher average equity resulting from Intergroup’s placement of new shares ? Earnings growth was strong a
Slide 3: Intergroup Financial Services
INTERGROUP Intergroup FINANCIAL Financial SERVICES <IFS> Services 7
Slide 4: Intergroup's revenues and net income grew significantly on a YoY basis
Intergroup’s revenues and net income grew significantly on a YoY basis Total Revenues Net Income* S/. million S/. million 120 31.3% 259 257 29.3% 30.0% 27.9% ROE 100 211 80 25.0% 69 62 60 46 20.0% 40 15.0% 20 0 10.0% 2Q06 1Q07 2Q07 2Q06 1Q07 2Q07 *Attributable to IFS’ shareholders Intergroup 2 2Q07
Slide 5: Strong contributions by both subsidiaries led to a 52% YoY increase in net earnings
Strong contributions by both subsidiares led to a 52% YoY increase in net earnings Intergroup Profit and Loss Statement Summary S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY Financial income 221 278 291 5% 32% Financial expenses -50 -62 -72 15% 44% Gross financial margin 171 216 219 2% 28% Provisions
Slide 6: Interbank
INTERGROUP FINANCIAL SERVICES <IFS> Interbank 7
Slide 7: Revenue growth led to a 20% YoY increase in Interbank's net earnings
Revenue growth led to a 20% YoY increase in Interbank’s net earnings Profit and Loss Statement Summary S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY Financial income 194 225 234 4% 20% Financial expenses -47 -58 -61 6% 30% Gross financial margin 147 167 172 3% 17% Provisions -29 -29 -34 16% 17% Net f
Slide 8: Performing loans grew 26% YoY, driven by retail and commercial portfolios
Performing loans grew 26% YoY, driven by strong performances in the retail and commercial portfolios Performing loans Breakdown of retail loans S/. million %chg %chg S/. million 2Q06 1Q07 2Q07 QoQ YoY Consumer loans: +26% Credit cards 626 718 750 5% 20% 4,798 Other consumer 792 984 1,083 10% 37% 4,2
Slide 9: Growth in deposits has remained strong, but was slower than loan growth
Growth in deposits has remained strong, but was slower than the growth in loans during the last quarter Funding Structure Deposit Breakdown S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY +31% Deposits and obligations 4,844 5,987 6,343 6% 31% 6,343 63% -5% 5,987 Due to banks 874 506 826 5,763 716 5,591
Slide 10: Interbank's NIM remains significantly above the banking industry's average
Interbank’s NIM remains significantly above the banking industry’s average Net Interest Margin (%) 8.6% 8.4% 8.2% 8.3% 8.1% Interbank 7.0% 7.0% Peruvian Banking 6.9% 6.9% System 6.0% 2Q06 3Q06 4Q06 1Q07 2Q07 Source: ASBANC Intergroup 7 2Q07 Earnings Presentation
Slide 11: Asset quality and coverage continue to improve
Asset quality and coverage continue to improve Loan Provision Expense PDL & Coverage Ratios S/. million 5.50% 300% 3.4% 100 3.50% 235% 241% 234% 90 2.8% 3.00% 4.50% 250% 2.7% 208% 80 2.6% % loans* 199% 70 2.50% 3.50% 200% 60 2.00% 2.5% 2.5% 50 1.1% 2.50% 150% 1.50% 1.9% 1.9% 1.8% 40 35.6 32.8 29.0 2
Slide 12: Interbank's net financial margin grew 17% YoY
Interbank’s net financial margin grew 17% YoY Interbank Net Financial Margin S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY Financial Income: Loans 146 164 174 7% 19% Investments 15 31 29 -5% 94% Other 32 30 30 -3% -8% Total Financial Income 194 225 234 4% 20% Financial Expenses: Deposits 33 45 45 1%
Slide 13: Net fee income grew 22% YoY
Net fee income grew 22% YoY as a result of higher activities in credit cards, deposits and ATMs Fee Income from Financial Services, Net S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY Credit and debit card 19 22 24 10% 27% Fee for insurance and deposit accounts 17 21 20 -5% 19% Fee for statements of ac
Slide 14: Despite network expansion, the bank's efficiency ratio improved
Despite the expansion of Interbank’s network, the bank’s efficiency ratio improved Distribution network Operating expenses Units S/. million 900 788 800 724 170 200 55.9% 56.0% 60.0% 701 54.4% 700 ATMs 180 Efficiency 55.0% 150 160 ratio* 600 533 552 50.0% 140 127 128 500 130 111 45.0% 120 114 115 40
Slide 15: Interbank's profitability continues to improve
Interbank’s profitability continues to improve Net Income S/. million 70 35.0% 27.4% 27.7% 60 30.0% ROE* 23.3% 50 45.4 25.0% 40 37.8 37.9 20.0% 30 15.0% 20 10.0% 10 5.0% 0 0.0% 2Q06 1Q07 2Q07 *Annualized Intergroup 12 2Q07 Earnings Presentation
Slide 16: Interseguro
INTERGROUP FINANCIAL SERVICES <IFS> Interseguro 7
Slide 17: Growth in investment income led to a 165% YoY increase in Interseguro's net earnings
Growth in investment income led to a 165% YoY increase in Interseguro’s net earnings Profit and Loss Statement Summary S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY Premiums 68 58 57 -2% -16% Fees -5 -5 -6 24% 16% Claims -26 -33 -29 -11% 13% Change in reserves -47 -35 -45 29% -5% Direct expenses -1 -
Slide 18: Premiums have declined 16% YoY due to a contraction in the annuities market
Premiums have declined 16% YoY due to a contraction in the annuities market Premiums by Business Lines S/. million %chg %chg Market 2Q06 1Q07 2Q07 QoQ YoY Share Annuities 46 32 35 7% -24% 26% Disability and survivor benefits 11 11 11 -4% -4% 17% Group life 5 5 5 7% 15% 5% Individual life 4 6 4 -26%
Slide 19: Investment income grew 13% due to higher average volume and yield
Investment income grew 13% due to a 21% increase in average volume and a 730bps increase in average yield Investment Income, Net S/. million %chg %chg 2Q06 1Q07 2Q07 QoQ YoY Income: Equity 1 26 31 22% 5086% Fixed income 20 23 24 0% 15% Real estate 4 4 4 -9% 0% Funds 3 -2 3 -295% 7% Total income 28 5
Slide 20: Intergroup Financial Services
a Intergroup financial services
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