INTERCORP FINANCIAL SERVICES INC. Investor Presentation
March 2024
Universal bank
with strategic focus on
retail
Advisory firm for the
emerging
wealthy
Insurance company
focused on
life & annuities
Pillar for building our
payments
ecosystem
Intercorp Group: striving to make Peru the best place to raise a family in Latin America
Financial | Retail |
services | |
US$ 8.4bn | |
Revenues in 2022 | |
~4.0% of Peru 2022 GDP | |
Education | Other (1) |
2 | Source: Company information and Central Bank |
1) Related companies excluding Aviva and Urbi | |
Building a leading digital financial platform
Financial highlights | Four key businesses |
99.3%
99.8%
100.0%
As of Dec23 | S/ mn | US$ mn | |
Total assets (1) | 89,623 | | 24,164 |
Net profit (1) | 1,079 | 291 || 1,121(2) | 302 | |
ROE | 11.3% | | 11.7%(2) |
Efficiency ratio | 36.8% | | 36.4%(2) |
Universal bank with strategic focus on retail
#2 Consumer loans MS 22.2%
#3 Retail deposits MS 15.1%
CET1
11.8%
100.0%
Insurance company focused on life & annuities
#1 Annuities (3) MS 27.9%
#3 Total assets
Solvency ratio 118.8%
Pillar for building our payments ecosystem
Advisory firm for the emerging wealthy
US$ 6,250 mn AUM
Fees / Avg. AUM 0.6%
Capitalization ratio 17.4%
- 1.3 mn merchants
Source: Company information and SBS as of December 2023 | ||
3 | 1) | Figure converted to US dollars using an end of period exchange rate (Sol / US dollar) of 3.709 |
2) | Excludes impairment in our banking segment for S/ 70.0 million or S/ 41.5 million after taxes in 1Q23 | |
3) | Excluding private annuities |
Consistently delivering strong return to our shareholders
Dividends declared(1)
4
(S/ mn) | (S/ mn) | ||||||||||||
Net profit (2) | 902 | 1,040 | 1,222 | 265 | 1,201 | 1,172 | Net profit (2) | 104 | 361 | 436 | 257 | 304 | 203 |
Payout Ratio | 45% | 45% | 25% | n.m. | 50% | 50% | Payout Ratio | 96% | 68% | 46% | 78% | 66% | 49% |
467 | 600 | 586 | 245 | 200 | 200 | 202 | |||||||||
406 | |||||||||||||||
302 | |||||||||||||||
100 | 100 | ||||||||||||||
n.m. | |||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||
(US$ mn) | (US$ mn) | ||||||||||||||
Net profit (2) | 58 | 55 | 60 | 72 | 72 | n.m. | Net profit (2) | 317 | 373 | 435 | 106 | 452 | 438 | ||
Payout Ratio | 81% | 55% | 50% | 53% | 73% | n.m. | Dividend per | 1.40 | 1.75 | 1.75 | 0.77 | 1.75 | 1.18 | ||
Share (US$) | |||||||||||||||
US$ 0.65 | |||||||||||||||
53 | 197 | 202 | extraordinary | 202 | |||||||||||
47 | 38 | 158 | dividend | ||||||||||||
paid in Dec21 | 136 | ||||||||||||||
30 | 30 | ||||||||||||||
90 | |||||||||||||||
n.m. | |||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Source: Company information
- IFS dividends are declared and paid in U.S. dollars | Represents dividends for the fiscal year which are declared and paid in the following year
- Net profit under Local GAAP for Interbank and Interseguro, and under IFRS for Inteligo and IFS. IFS' net profit converted to US dollars using an exchange rate (Sol / US dollar) of 3.262, 3.318, 3.314, 3.621, 3.987 and 3.814 for 2017, 2018, 2019, 2020, 2021 and 2022, respectively | Adjusted net profit for IFS in 2018 excluding the aggregate negative effect of new mortality tables in our insurance segment for S/ 144.8 million
Sound capitalization levels
Banking | 16.4%(1) | ||||||
System | 14.5% | 16.3% | Insurance | ||||
TCR | |||||||
15.1% | 15.0% | 15.5% | 12.0% | 11.8% | |||
11.2% | |||||||
Banking | Wealth management | ||||||
4Q22 | 3Q23 | 4Q23 | 4Q22 | 3Q23 4Q23 | |||
11.0% | |||||||
Reg. | 6.5% | ||||||
min. | Reg. | ||||||
min. | |||||||
TCR | CET1 ratio | ||||||
5 |
128.6% 136.1% 127.1%
100.0%
Reg.
min.
4Q23 3Q23 4Q23
Solvency ratio
20.4% 16.0% 17.4%
12.0%
Reg.
min.
4Q22 3Q23 4Q23
Capitalization ratio
Source: Company information and ASBANC 1) As of Nov23
Macro | Profitable |
1 outlook | |
2 growth |
Digital | Key | Guidance & |
3performance | 4businesses | 5takeaways |
The Central Bank continues to cut rates | 1 |
in line with decreased inflation
Quarterly GDP growth YoY (%)
Interest rates (%)
3.9%
3.4%
2.0% | 1.7% | 2024(E) |
3.0% | ||
-0.4%-0.5%-1.0% -0.4%
Soles reference rate (BCRP) | Dollar reference rate (FED) | |||||
7.50 | 7.75 | 7.50 | 6.75 | |||
5.50 | ||||||
2.50 | 4.50 | 5.25 | 5.50 | 5.50 | ||
0.25 | ||||||
1.75 | ||||||
0.25 | 0.25 | |||||
Feb24
6.25%
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 |
USD/PEN
4.13
3.85
3.63
Jan21 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jan24
7
Jun21 Dec21 Jun22 Dec22 Jun23 Sep23 Dec23 |
Inflation YoY (%)
8.8 | 8.5 |
6.4 | 6.5 |
5.0 | |
3.3 | 3.2 |
Jun21 Dec21 Jun22 Dec22 Jun23 Sep23 Dec23
Jan24
3.0%
12m (E)
2.6%
Source: Central Bank, MEF and INEI
Operating trends FY23
1
Capital
2023 | FY23 | |
Guidance | Actual | |
IBK TCR | ∼ 15% | 15.5% |
IBK CET1 | ∼ 11% | 11.8% |
To remain at sound levels
Revenues
2023 | FY23 |
Guidance | Actual |
IBK NIM 5.5% - 6.0% | 5.5%(1) |
NIM stabilizing
Profitability
2023 | FY23 |
Guidance | Actual |
IFS ROE 8% - 10% | 11.3%(1) |
Impacted by CoR and
investment results
Cost of risk
2023 FY23
Guidance Actual
IBK CoR 4.2% - 4.8% | 4.3% |
Increasing cost of risk in consumer portfolio
Loan growth
High single digit growth in
total loans(2) led by low double digit growth in consumer loans
Total loans +6% / Consumer +7%,
decelerating growth
Efficiency
2023 | FY23 | |
IFS efficiency | <36% | 36.8%(1) |
IBK efficiency | <39% | 37.3%(1) |
Continued focus on efficiency
8
- Includes impairment in our banking segment for S/ 70.0 million or S/ 41.5 million after taxes in 1Q23
- Excludes Reactiva Peru loans
Macro | Profitable |
1 outlook | |
2 growth |
Digital | Key | Guidance & |
3performance | 4businesses | 5takeaways |
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Disclaimer
Intercorp Financial Services Inc. published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 19:34:04 UTC.
