Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Q3 2013 Earnings Presentation
19 slides from Intercorp Financial Services's earnings presentation, November 2013
Slide 1: Third Quarter 2013 Earnings Presentation
Third Quarter 2013 Earnings Presentation
Slide 2: Intercorp Financial Services
Intercorp Financial Services 2
Slide 3: Highlights
Highlights Intercorp Financial Services: • IFS net earnings were S/. 146.9 million in 3Q13, a 12.4% decrease QoQ and a 7.3% decline YoY • Excluding non-recurring items, net earnings would have increased 15.3% QoQ and decreased 11.9% YoY • Gross financial margin increased while loan growth outpaced t
Slide 4: IFS 3Q13 recurring net earnings increased 15.3% QoQ
IFS 3Q13 recurring net earnings increased 15.3% QoQ IFS Interbank Interseguro Net income* Net income Net income S/. million ROE S/. million ROE S/. million ROE 29.8% 29.3% 350 25.9% 300 25.0% 23.2% 21.3% 250 14.8% 15.6% 200 7.0% 158.5 167.7 169.3 -8.3 146.9 159.2 156.9 40.2 7.3 35.6 150 100 166.8 15
Slide 5: IFS net earnings were S/. 146.9 million in 3Q13
IFS net earnings were S/. 146.9 million in 3Q13 Intercorp Financial Services' Statement of Comprehensive Income S/. million %chg %chg 3Q12 2Q13 3Q13 QoQ YoY Financial income 583.5 637.8 669.2 4.9% 14.7% Financial expenses -125.8 -143.8 -151.9 5.7% 20.8% Gross financial margin 457.7 494.0 517.3 4.7%
Slide 6: Interbank
(J Intercorp Financial Services
Slide 7: Interbank's net income was S/. 156.9 million in 3Q13
Interbank’s net income was S/. 156.9 million in 3Q13 Interbank's Statement of Comprehensive Income S/. million % chg % chg 3Q12 2Q13 3Q13 QoQ YoY Financial income 543.6 572.1 612.7 7.1% 12.7% Financial expenses -123.9 -143.9 -151.7 5.4% 22.5% Gross financial margin 419.8 428.2 460.9 7.7% 9.8% Provis
Slide 8: Loan growth strengthened to 8.0% QoQ and 23.6% YoY
Loan growth strengthened to 8.0% QoQ and 23.6% YoY Performing loans Breakdown of loans S/. million % chg % chg 3Q12 2Q13 3Q13 QoQ YoY S/. million Consumer loans: Credit cards 2,124 2,103 2,331 10.8% 9.7% +23.6% Other consumer 2,787 2,922 3,034 3.8% 8.9% Total consumer loans 4,911 5,026 5,366 6.8% 9.
Slide 9: Interbank's deposits grew 7.8% QoQ and 29.0% YoY
Interbank’s deposits grew 7.8% QoQ and 29.0% YoY Funding Structure Deposit Breakdown S/. million % chg % chg 25,000 3Q12 2Q13 3Q13 QoQ YoY Deposits 14,744 17,644 19,026 7.8% 29.0% Due to banks 2,815 3,398 2,994 -11.9% 6.4% +29.0% 20,000 19,026 Bonds 2,753 2,961 3,001 1.4% 9.0% 17,644 959 Inter-bank
Slide 10: Gross financial margin increased 7.7% QoQ and 9.8% YoY
Gross financial margin increased 7.7% QoQ and 9.8% YoY Interbank's Gross Financial Margin S/. million % chg % chg 3Q12 2Q13 3Q13 QoQ YoY Financial income: Interest on loans 450.2 482.5 526.7 9.1% 17.0% Fees on loans 67.3 63.2 63.5 0.5% -5.7% Investment income & interest on cash 25.7 26.2 22.3 -14.7%
Slide 11: NIM remains above the industry's average
NIM remains above the industry’s average Net Interest Margin (%) * 8.9% 8.8% 8.8% 8.2% 7.7% 7.6% 7.2% 6.9% 7.0% 6.3% 6.4% 6.4% 6.3% 6.4% 6.3% 6.2% 6.2% 6.0% 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Interbank Industry * Gross financial margin / Average interest-earning assets. The gross financial
Slide 12: Asset quality improved while provision expenses remained stable QoQ
Asset quality improved while provision expenses remained stable QoQ PDL & Coverage Ratios Loan Provision Expense S/. million Provision expense* Loans 3.00% 220 3.0% 235.5% 235.0% 3.20% 226.2% 228.1% 2.4% 2.50% 225.9% 235.00% 2.2% 2.1% 170 2.0% 2.20% 2.00% 185.00% 116.7 1.20% 120 1.50% 94.6 89.4 1.9%
Slide 13: Fee income and results from financial operations (ROF) decreased 2.6% YoY
Fee income and results from financial operations (ROF) decreased 2.6% YoY Fee income & ROF Operating expenses S/. million S/. million (Fee income + ROF) / operating revenues Efficiency ratio* ROF Net fee income 50.8% 50.0% 29.0% 400 48.9% 47.9% 27.8% 47.2% 25.8% 26.0% 23.5% 350 175.2 301.3 286.0 289
Slide 14: Interbank's BIS ratio remained strong
Interbank’s BIS ratio remained strong 22% 2 0% Tier II Tier I 18% 16% 14.4% 14.5% 14% 13.7% 13.7% 13.3% 3.6% 12% 11.5% 4.7% 3.2% 3.5% 3.0% 1.5% Additional Regulatory Capital 10.8% Requirement 1 0% 2.9% 9.8% 10.0% Total Regulatory Minimum 2.7% 9.5% 9.1% 8% 6% 10.5% 10.3% 10.9% 9.7% 10.2% 4% 8.1% 8.6%
Slide 15: Interseguro
Interseguro (J Intercorp Financial Services 15
Slide 16: Interseguro's net income was S/. 6.9 million in 3Q13
Interseguro’s net income was S/. 6.9 million in 3Q13 Profit and Loss Statement Summary S/. million % chg % chg 3Q12 2Q13 3Q13 QoQ YoY Premiums 118.8 136.8 141.1 3.1% 18.8% Premiums ceded -1.2 -1.4 -1.6 10.6% 27.5% Fees -3.9 -11.7 -14.0 20.0% 261.2% Claims -39.1 -42.6 -44.6 4.8% 14.1% Change in reser
Slide 17: Premiums grew 3.1% QoQ and 18.8% YoY due to higher sales across all business lines
Premiums grew 3.1% QoQ and 18.8% YoY due to higher sales across all business lines Premiums by Business Line S/. million % chg % chg 3Q12 2Q13 3Q13 QoQ YoY Individual Life 7.8 9.5 11.8 25.0% 50.8% Annuities 87.7 93.6 94.2 0.6% 7.4% Group Life 14.5 24.4 20.3 -16.6% 40.3% Disability and survivor benef
Slide 18: Interseguro's real estate investments grew 15.4% QoQ
Interseguro’s real estate investments grew 15.4% QoQ Investment Portfolio S/. million % chg % chg 3Q12 2Q13 3Q13 QoQ YoY Fixed Income 2,050.9 2,461.0 2,511.6 2.1% 22.5% Equity and Mutual Funds 351.0 425.0 409.3 -3.7% 16.6% Real estate 434.5 363.7 419.6 15.4% -3.4% Other 4.9 4.9 5.2 6.3% 5.8% TOTAL 2
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Intercorp Financial Services — Q3 2013 Earnings Presentation on 6ix