Intercorp Financial Services Inc. · NYSE:IFS

Intercorp Financial Services — Q1 2008 Earnings Presentation

20 slides from Intercorp Financial Services's earnings presentation, 2008

  1. Slide 1: First Quarter 2008 Earnings Presentation

    First Quarter 2008 Earnings Presentation

  2. Slide 2: Highlights

    Highlights Intergroup • Intergroup’s 1Q08 earnings per share were S/.0.61 (net income: S/.56.3mm), a decrease of 9% from both 1Q07 and 4Q07, despite significant growth in the contribution from subsidiaries • The main driver for the decline in Intergroup’s earnings was a foreign exchange loss on the

  3. Slide 3: Intergroup Financial Services

    INTERGROUP Intergroup FINANCIAL Financial SERVICES <IFS> Services 7

  4. Slide 4: Net income declined 9% QoQ and YoY, despite growth in the contribution from subsidiaries

    Net income declined 9% QoQ and YoY, despite growth in the contribution from subsidiaries Intergroup Interbank Interseguro S/. million S/. million S/. million 120 50 ROE 40 ROE 23.3% 45.00% 0 40.0% 45 19.1% 31.3% 100 36.3% 40.00% 14.1% 20 ROE 40 0 30.0% 37.9 19.2% 30.2% 35.00% 16.8% 20.0% 35 0. 0 80

  5. Slide 5: Net earnings

    Net earnings Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 1Q07 4Q07 1Q08 QoQ YoY Financial income 279 326 343 5% 23% Financial expenses -63 -85 -93 10% 48% Gross financial margin 216 241 250 4% 16% Provisions -29 -26 -36 36% 23% Net financial margin 187 215 214 0% 14% Fee inc

  6. Slide 6: The contribution from subsidiaries increased 32% YoY and 24% QoQ

    The contribution from subsidiaries increased 32% YoY and 24% QoQ Intergroup's Profit and Loss Statement Summary S/. million %chg %chg 1Q07 4Q07 1Q08 QoQ YoY Interbank 36.5 58.2 71.3 22.5% 95.4% Interseguro 24.9 7.3 10.0 35.7% -60.1% Intergroup accounts: Return on investment portfolio 4.2 4.5 8.1% Ex

  7. Slide 7: Interbank

    INTERGROUP FINANCIAL SERVICES <IFS> Interbank 7

  8. Slide 8: Interbank's net income grew 94% YoY, and 23% QoQ, due to higher financial margin

    Interbank’s net income grew 94% YoY, and 23% QoQ, due to higher financial margin Profit and Loss Statement Summary S/. million %chg %chg 1Q07 4Q07 1Q08 QoQ YoY Financial income 225 283 318 12% 41% Financial expenses -58 -75 -85 13% 47% Gross financial margin 167 207 233 12% 39% Provisions -29 -26 -3

  9. Slide 9: Performing loans grew 42% YoY and remained stable QoQ

    Performing loans grew 42% YoY and remained stable QoQ Performing loans Breakdown of retail loans S/. million %chg %chg S/. million 1Q07 4Q07 1Q08 QoQ YoY Consumer loans: Credit cards 718 842 874 4% 22% +42% Other consumer 984 1,280 1,402 9% 43% 6,059 -0% 6,051 Total consumer loans 1,701 2,123 2,276

  10. Slide 10: Growth in deposits remains strong, but slower compared to loans

    Growth in deposits remains strong, but slower compared to loans Funding Structure Deposit Breakdown S/. million %chg %chg 1Q07 4Q07 1Q08 QoQ YoY +29% 7,747 7,281 Deposits and obligations 5,987 7,281 7,747 6% 29% 704 6,818 489 Due to banks 506 1,451 1,481 2% 193% 6,343 5,987 684 1,260 Bonds and oblig

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

    NIM remains significantly above the industry average Net Interest Margin (%) 8.6% 8.3% 8.0% 8.1% Interbank 7.8% 7.0% 6.9% 6.9% 6.8% Peruvian Banking 6.7% System 1Q07 2Q07 3Q07 4Q07 1Q08 Source: ASBANC Intergroup 11 Management Presentation

  12. 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% 90 330% 350% 2.7% 3.00% 4.50% 2.7% 80 2.6% % loans* 268% 300% 70 2.3% 2.50% 241% 234% 2.0% 3.50% 250% 60 2.00% 50 2.50% 200% 36.0 1.50% 1.9% 40 33.7 35.7 1.8% 29.1 26.2 30 1.4%

  13. Slide 13: Net financial margin grew 43% YoY and 9% QoQ

    Net financial margin grew 43% YoY and 9% QoQ Interbank Net Financial Margin S/. million %chg %chg 1Q07 4Q07 1Q08 QoQ YoY Financial Income: Loans 164 207 222 7% 35% Investments 31 29 48 66% 57% Other 30 46 48 3% 58% Total Financial Income 225 283 318 12% 41% Financial Expenses: Deposits 45 52 61 18%

  14. Slide 14: Fee income grew 15% YoY as a result of higher activities in credit cards, deposits and ATMs

    Fee income grew 15% YoY as a result of higher activities in credit cards, deposits and ATMs Fee Income from Financial Services, Net S/. million %chg %chg 1Q07 4Q07 1Q08 QoQ YoY Credit and debit card 22 28 27 -2% 24% Fees for sevices 27 28 30 9% 12% Contingent operations 3 4 3 -11% 8% Fees for collec

  15. Slide 15: Despite the continuing expansion of Interbank's branch network, expenses fell 3.8% QoQ

    Despite the continuing expansion of Interbank’s branch network, expenses fell 3.8% QoQ Distribution network Operating expenses Units S/. million 1,300 ATMs250 Efficiency 59.1% 59.0% ratio* 1,010 1,025 230 200 60.0% 1,100 53.7% 180 210 55.0% 824 155 900 788 160 149 724 190 50.0% 140 164 121 700 161 1

  16. Slide 16: Interseguro

    INTERGROUP FINANCIAL SERVICES <IFS> Interseguro 7

  17. Slide 17: Interseguro's net income fell 67% YoY but increased 36% QoQ

    Interseguro’s net income fell 67% YoY but increased 36% QoQ Profit and Loss Statement Summary %chg %chg S/. million 1Q07 4Q07 1Q08 QoQ YoY Premiums 58.3 58.9 51.5 -13% -12% Premiums ceded -1.6 -1.1 -1.6 43% 2% Fees -1.7 -1.8 -1.2 -33% -28% Claims -32.4 -43.9 -35.1 -20% 8% Change in reserves -33.8 -3

  18. Slide 18: Premiums have fallen 12% YoY and 13% QoQ due to a decline in disability and survivor benefit premiums

    Premiums have fallen 12% YoY and 13% QoQ due to a decline in disability and survivor benefit premiums Premiums by Business Line %chg %chg S/. million 1Q07 4Q07 1Q08 QoQ YoY Individual Life 5.8 4.9 5.1 4% -13% Annuities 32.4 31.5 33.8 7% 4% Group Life 4.8 5.4 6.3 17% 32% Disability and survivor benef

  19. Slide 19: Investment income decreased 16% YoY, but increased 26% QoQ

    Investment income decreased 16% YoY, but increased 26% QoQ Investment Portfolio %chg %chg S/. million 1Q07 4Q07 1Q08 QoQ YoY Fixed Income 846.0 966.3 910.5 -6% 8% Equity and Mutual Funds 398.5 287.0 246.5 -14% -38% Real estate 100.8 183.6 225.3 23% 124% Others 132.0 171.2 184.2 8% 40% TOTAL 1,477.2

  20. Slide 20: Intergroup financial services

    CJ Intergroup financial services

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