Intercorp Financial Services : Investor Presentation - IFS, January 2021

Investor

Presentation

January 2021

Safe Harbor for Forward-Looking Statements

This corporate presentation contains "forward looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this corporate presentation regarding IFS' business, financial condition, results of operations and certain of IFS' plans, objectives, assumptions, projections, expectations or beliefs and statements regarding other future events or prospects are forward-looking statements. These statements include, without limitation, those concerning: IFS' strategy and IFS' ability to achieve it; IFS' recent developments; expectations regarding sales, profitability and growth; IFS' possible or assumed future results of operations; capital expenditures and investment plans; adequacy of capital; and financing plans. In addition, this corporate presentation includes forward-looking statements relating to IFS' potential exposure to various types of market risks, such as macroeconomic risk, Peru specific risks, foreign exchange rate risk, interest rate risks and other risks related to IFS' financial performance. The words "aim," "may," "will," "expect," "is expected to," "anticipate," "believe," "future," "continue," "help," "estimate," "plan," "schedule," "intend," "should," "would be," "seeks," "estimates," "shall," or the negative or other variations thereof, as well as other similar expressions regarding matters that are not historical facts, are or may indicate forward-looking statements.

IFS has based these forward-looking statements on its management's current views with respect to future events and financial performance. These views reflect the best judgment of IFS' management but involve a number of risks and uncertainties which could cause actual results to differ materially from those predicted in IFS' forward-looking statements and from past results, performance or achievements. Although we believe that the estimates reflected in the forward-looking statements are reasonable, such estimates may prove to be incorrect. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, among other things: (a) IFS' holding company structure; (b) economic, business and political developments in Peru and globally; (c) changes in Peruvian, Panamanian and Bahamian and other foreign laws and regulations, including the adoption of new capital requirements for banks or insurance companies; (d) increased competition in the Peruvian financial services and insurance markets; (e) increased inflation; (f) exchange rate instability and government measures to control foreign exchange rates; (g) developments affecting the purchasing power of middle income consumers or consumer spending generally; (h) increases in interest rates; (i) downturns in the capital markets and changes in capital markets in general that affect policies or attitudes towards lending to Peru or Peruvian companies or securities issued by Peruvian companies; (j) IFS' ability to keep up with technological changes; (k) the inability to obtain the capital we need for further expansion of IFS' businesses; (l) the inability to attract and retain key personnel; (m) changes in tax laws; (n) severe weather, natural disasters and adverse climate changes; (o) changes in regional or global markets; (p) dependence on sovereign debt in IFS' investment portfolios; (q) credit and other risks of lending, such as increases in defaults of borrowers; (r) increased costs of funding or IFS' inability to obtain additional debt or equity financing on attractive terms or at all; (s) a deterioration in the quality of IFS' assets; (t) allowances for impairment losses may be inadequate; (u) changes to accounting standards; (v) changes in actuarial assumptions upon which IFS' annuity business is based; (w) failure to adequately price insurance premiums; (x) decreases in the spread between investment yields and implied interest rates in annuities; (y) dependence on information technology systems and cybersecurity risks; and (z) other risks and uncertainties.

Additionally, new risks and uncertainties can emerge from time to time, and it is not possible for IFS to predict all future risks and uncertainties, nor can IFS assess their potential impact. Accordingly, you should not place undue reliance on forward-looking statements as a prediction of actual results.

All forward-looking statements included in this corporate presentation are based on information available to IFS on the date of this corporate presentation. IFS undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All other written and oral forward-looking statements attributable to IFS or persons acting on IFS' behalf are expressly qualified in their entirety by the cautionary statements contained throughout this corporate presentation.

The Company prepares the financial information included in the presentation in accordance with International Financial Reporting Standards (IFRS). We have included in this presentation certain information reported by the Peruvian Superintendency of Banks, Insurance and Private Pension Fund Administrators (Superintendencia de Banca, Seguros y AFPs, or "SBS") and the Peruvian Securities Commission (Superintendencia del Mercado de Valores, or "SMV") for the Peruvian banking and insurance sector as a whole as well as for individual financial institutions in Peru, including Interbank and Interseguro, our subsidiaries, which report to the SBS and the SMV in accordance with accounting principles prescribed by the SBS ("Peruvian SBS GAAP" or "Local GAAP"). All financial information in this presentation regarding our relative market position and financial performance vis-a-vis the banking and insurance sectors in Peru are based, out of necessity, on information obtained from SBS and SMV statistics. Information in this presentation regarding our relative market position and financial performance relating to Inteligo, our subsidiary, may have been obtained from public sources, as Inteligo is not regulated by and does not report to the SBS or the SMV. In addition, for certain financial information related to our compound annual growth rate we have included such information pursuant to Peruvian SBS GAAP in order to be able to show our growth over a certain number of years. IFRS differs in certain respects from Peruvian SBS GAAP. Consequently, information presented in this presentation in accordance with Peruvian SBS GAAP or based on information from the SBS or SMV may not be comparable with our financial information prepared in accordance with IFRS.

1

IFS at a glance

Leading financial services platform with solid balance sheet and diversified source of dividends

Financial highlights

Three operating segments

99.3%

99.8%

100.0%

As of Sep 2020

S/ mm | US$ mm

Universal bank with strategic

Insurance company with

Leading provider of wealth

focus on retail

focus on life & annuities

management services

Total assets (1)

86,012 | 23,912

#1

Credit cards (5)

#1

Annuities (6)

US$ 5,527 mm AUM

MS 28.6%

MS 27.2%

2019 adjusted

1,479 | 446

#2

Consumer loans

#3 Total assets

Capitalization Ratio 23.8%

net profit (2)

MS 19.8%

2019 ROE (2)

18.6%

Contribution

Efficiency ratio (3)

31.2%

Assets

78%

17%

5%

2019 adjusted

79%

8%

13%

Capital ratio / CET1 (4)

17.0% / 11.4%

net profit (2,7)

Dividends (8)

50%

33%

17%

Source: Company information and SBS as of September 2020.

1. Figure converted to US dollars using an exchange rate (Sol / US dollar) of 3.597.
2. Excluding the one-off impact of a Liability Management transaction in our banking segment for S/ 42.3 million, or S/ 29.0 million after taxes in 4Q19. Including this effect, IFS' net profit and ROE were S/ 1,450 million and 18.3% in 2019, respectively. Figure converted to US dollars using an exchange rate (Sol / US dollar) of 3.314.
3. Excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic in our banking segment for S/ 151.1 million or S/ 106.6 million after taxes in 9M20. Including this effect, IFS's efficiency ratio was 32.4% in 9M20.
4. For Interbank only. Under SBS GAAP.
5. Consumer credit card loans in the banking system.

3 6) Excluding private annuities.

1. Contribution before eliminations and holding company expenses under IFRS. Including eliminations and holding company expenses, contributions were 85% for Interbank, 9% for Interseguro and 14% for Inteligo.
2. Represents dividends declared for 2019 fiscal year and paid in 2020.

Intercorp Group: striving to make Peru the best place to raise a family in Latin America

Financial	Retail
services
US$ 8.2bn
	Revenues in 2019
	~3.5% of Peru 2019 GDP

Education	Other (1)

4	Source: Company information and BCRP.
1) Related companies excluding Aviva and Urbi.

Story of sustained growth and strong returns for our shareholders

Sustained growth and market share gains over the years

Total assets (S/ mm)

MS loans (1)	9.4%	11.3%	12.6%
MS deposits (1)	9.3%	11.6%	13.3%
MS annuities (2)	22.7%	24.6%	28.9%
					71,562
				40,365
			11,958
			2007	2014	2019

Delivering strong returns for our shareholders

Net profit (US$ mm) (3)

Dividends	40	181	202
paid (US$ mm)

		435
	319
89(4)
2007	2014	2019

Market capitalization

US$ 1.2 bn

US$ 3.6 bn

20072020

	Source: Company information and Bloomberg.
	1)	Market share for Interbank.
5	2)	Excluding private annuities.
3)	Figures converted to US dollars using an exchange rate (Sol / US dollar) of 3.129, 2.839 and 3.314 for 2007, 2014 and 2019, respectively.
	4)	Under Local GAAP.

Strategically positioned to capture significant growth opportunities

What distinguishes us

Universal franchise	Customer	Ready-to-scale
omnichannel
with strong focus	centricity
platform
on retail

Strong	Story of sustainable	Part of leading
brand	growth and high	Peruvian
recognition	profitability	business group

The opportunity

32.5 million POPULATION IN PERU

~ 9.8 million BUSINESSES IN PERU

6

How we do it

Deep knowledge	Digital first	Innovation at
of Peruvians	strategy	the core
through analytics

Empower all Peruvians

to achieve	Trust of +3	Focus on	Unique, horizontal
financial well-being	million	efficiency and	and agile working
customers	productivity	culture

17.5 million populationEconomically active	4.0 million IFS customers
~ 97 thousand	IFS customers

Source: Company information, BCRP and EIU as of September 2020.

Scalable digital platform already in place

2010 - 2014	2015 - 2018
Store-centric model	Omnichannel platform with
focused on physical	strong focus on digital and
convenience	analytics
• Transactional online banking	• Digital sales and self-service capabilities
• Monday to Sunday, from 9 am to 9 pm	• Launching of digital only solutions
• 1st agile development team (Feb. 2014)	• 3x investment in technology

2019 - Onwards

Search for exponential growth

• Digital capabilities in place to boost growth
• Advanced analytics and real time decision
• Enterprise agility & cloud
• Open banking model w/ microservices and APIs

Streamlining our physical presence (1)

Financial stores	ATMs	Correspondent
		agents
284	2,324	3,238	3,293
233		1,607

Scaling digital and analytical capabilities (1)

Digital acquisition	Digital sales	Digital users
(% of total)	(% of total)	(thousand)
33%	45%	1,564
	39%	1,148
21%

Dec14

Sep20

Dec14

Sep20

Dec14

Sep20

Sep19

Sep20

Sep19

Sep20

Sep19

Sep20

7	Source: Company information.
1) Banking segment.

Key messages

1

2

3

4

5

Strong liquidity and	Macro expectations and
capital position	banking activity gradually
	recovering, good results
	in insurance and wealth
	management businesses

Digital trends and new	Lower provisions QoQ, still	Double-digit reduction in
alliances continue to	above pre COVID-19 levels	expenses due to cost
support IFS' strategy		containment measures

8

Liquidity levels remain high with continuous growth in deposits at Interbank

	Interbank - Loan to deposit ratio (LDR)					Interbank - Total deposits
% as of November 30, 2020		Total LDR					S/ million
									Market	12.7%		13.2%
										Share
							110%
						100%
97%		98%			System:
								99%			+26.1%
														41,449
											33,742

1

13.1%

42,538

BCP

BBVA

Scotiabank

3Q19

2Q20

3Q20

LDR S/

LDR USD

Interbank & IFS Stand-alone - Liquid assets

S/ million as of September 30, 2020

115%	120%
	System

64%	65%
	System

24,809

8,470

16,338

933

511

422

Cash and due from banks		Financial investments

Source: Company information and SBS.

9

Strengthened capital ratios at all IFS' segments	1

Banking

System	14.9%	14.8%	15.6%	15.5%
TCR
		16.7%(1)	17.0%	17.0%	11.4%	11.1%	11.4%	11.4%
	15.4%

10.6%

regulatory

15.4% 16.7% 17.0% 17.0% minimum

Sep19 Jun20 Sep20 Nov20	Sep19 Jun20 Sep20 Nov20
Total capital ratio (TCR)		CET1 ratio

167.4% 166.2%

142.6% 144.5%

100.0%

regulatory minimum

Sep19 Jun20 Sep20 Nov20

Solvency ratio

27.4%

23.3%	23.8%
	21.1%

8.0%

regulatory minimum

Sep19 Jun20 Sep20 Nov20

Capitalization ratio

1) Proforma to include the USD 300 million subordinated bond placed in June 2020 and issued in July 2020. Excluding this effect, total capital ratio was 14.7% in 2Q20.

10

Moderate recovery in macro activity and	2
expectations

GDP	Mining and fuel GDP	Credit to private sector
(YoY % Chg)	(YoY % Chg)	(YoY % Chg)

3.7%

-7.0% -3.5%-17.9%

-39.2%

Feb20 Apr20 Jun20 Sep20 Nov20(E)

	11.5%
		3.6%							13.3%	14.1%	12.4%
TBU							7.7%	8.7%
						4.4%
						-4.8%
-11.5%				-14.2%	-12.2%
										-2.0%	-4.6%
			-42.2%
FY20(E)	FY21(E)	Feb20	Apr20	Jun20	Sep20	Nov20	Feb20	Apr20	Jun20	Sep20	Nov20

		Incl. Reactiva Excl. Reactiva
Expectations on economic activity	Fishing GDP	Internal cement
(Index > 50, indicates positive sentiment)	(YoY % Chg)	consumption index

				66	69							(YoY % Chg)
					48.1%
57
	53
			19.3%
												17.7%
50							7.3%		4.4%			9.7%
30
42		TB	47	53
		U					-6.8%
									-30.3%
		29
	9					-57.8%					-98.3%
Feb20	Apr20	Jun20		Sep20	Nov20
					Feb20	Apr20	Jun20	Sep20	Nov20	Feb20	Apr20	Jun20	Sep20	Nov20(P)
		3 months	12 months

Source: Central Bank, INEI and Macroconsult.

11	(E) Estimated.
	(P) Preliminary.

Gradual improvement in our core operating	2
indicators

Credit and debit cards turnover	Payroll deduction loans disbursements	Gross premiums plus collections
(Index; 100 = Feb20)	(Index; 100 = Feb20)	(Index; 100 = Feb20)

100	113		100								119
80		88	94	100
	64			50					76	77
	38						52
				8
Feb20 Apr20 Jun20 Sep20 Dec20	Feb20 Apr20 Jun20 Sep20 Dec20		Feb20	Apr20	Jun20	Sep20	Dec20(P)

	Mortgages disbursements		Net fee income					AUM
	(Index; 100 = Feb20)		(Index; 100 = Feb20)						(Index; 100 = Feb20)
	122										109
100	93	100				100		101	104
				71
		65	62			93
	42	48
	9
Feb20 Apr20 Jun20 Sep20 Dec20		Feb20 Apr20 Jun20 Sep20	Dec20(P)	Feb20	Apr20	Jun20	Sep20	Dec20

12	(P) Preliminary.

Reactiva Peru Program as an opportunity to gain	2
relevance in the mid-sized and SME segments

Commercial loans

S/ million, Local GAAP

	+41.6%
		22,639	22,658
		6,709		6,707
16,000

16,000

15,92915,951

Mar20

Sep20

Nov20

Mid-sized loans

S/ million, Local GAAP

		+69.2%		16,000
				8,351	8,416
				3,900		3,859
	4,972
				4,451		4,557
	Mar20	Sep20		Nov20

Mar 2020

Corporate loans

S/ million, Local GAAP

20,545+11.5.%
8,549		9,556	-0.2%	9,533	603
	725
	3,833			8,830		8,930

Mar20

Sep20

Nov20

SME loans

S/ million, Local GAAP

16,713

		+203.7%
				2,944	3,017
				1,978		2,129
	993
				965		887
	Mar20	Sep20		Nov20

Jun 2020

Reactiva Peru

13

Digital KPIs continue to show positive trends	3

Interbank - Digital users	Interbank - 100% digital customers
% of digital users	100% digital customers

Interbank - Business accounts

N° and % of business accounts opened digitally (thousand)

52%47%

75%

61%

Sep19Sep20

Interbank & Interseguro - Digital sales

N° and % of products sold digitally (thousand)

Interbank	Interseguro (SOAT)
39%	45%	62%	83%

172	45
	145
	24

Sep19 Sep20 Sep19 Sep20

14

53%

32%

Sep19Sep20

Interbank - Retail digital acquisition

N° and % of monthly retail customers "born digitally" (thousand)

21%33%

27

17

Sep19Sep20

5

2

Sep19Sep20

Interbank - Savings accounts

N° and % of savings accounts opened digitally (thousand)

36%50%

69

43

Sep19Sep20

Growing customer base in retail and commercial,	3
digitally driven

Interbank - Retail customers

Thousand

+14.8%

Interbank - Commercial customers

Thousand

+46.0%

3,370

3,868

96

66

Sep19

Sep20

Interbank - Retail 100% digital customers

Thousand

+86.3%

1,117

600

Sep19

Sep20

Interbank - Tunki accounts & Plin users

N° of Tunki accounts and Plin users (thousand)

Tunki

		IBK
		38.4%
	551	1,776
162		623

Sep19

Sep20

Mar20

Sep20

Mar20

Sep20

15

Outstanding rescheduled loans slightly	4
decreasing

Interbank - Loan rescheduling

S/ billion

Clients	343	459	422	27%
(Thousand)
			at System

Level(1)

Rescheduled	30%	31%	26%
balance (%)
		12.7
	10.9		10.9
	Apr20	Jun20	Nov20

Interbank - Retail loans rescheduling

S/ billion
Clients	332	441	407	43%
(Thousand)
			at System
Rescheduled				Level(1)
34%	43%	41%
balance (%)

	8.6	7.9
6.9
Apr20	Jun20	Nov20

Interbank - Commercial loans rescheduling

S/ billion
Clients	11	19	15	19%
(Thousand)
			at System
Rescheduled				Level(1)
24%	20%	13%
balance (%)

4.0	4.1	3.0
Apr20	Jun20	Nov20

Source: Company information, ASBANC and SBS.

16	1) As of November 6, 2020.

Improving payment behavior among Interbank's	4
retail clients
Retail loan balances with payments due	Payment behavior

S/ billion
% of retail loans	96%	99%
with payments
due

16.6	17.0	Payments of rescheduled loans
		Collected	Requested relief	Not paid

6.6	6.5	92.6%	94.8%	1.2%	0.6%	6.2%	4.6%
(38%)	Oct20	Dec20	Oct20	Dec20	Oct20	Dec20
(40%)

Payments of non-rescheduled loans

10.0	10.5
(62%)
(60%)

CollectedRequested reliefNot paid

97.9%	98.4%	0.2%	0.1%	1.9%	1.5%
Oct20	Dec20	Oct20	Dec20	Oct20	Dec20

Oct20Dec20

Rescheduled		Non-rescheduled

17

QoQ reduction in provisions, still above pre	4
COVID-19 levels
Interbank - Cost of risk	Interbank - Non-performing exposure

	13.4%
		4.5%
2.6%
3Q19	2Q20	3Q20

Cost of risk - Retail banking

NPL

126.4% 196.6% coverage ratio

	7.1%
2.5%(1)
9M19	9M20

										After
									adjustments
									to the expected
									loss model:
					13.4%	15.1%	(S2+S3) ratio: 23.7%
						NPL ratio: 5.7%
	9.5%
				3.4%	3.4%
		3.0%
	3Q19			2Q20	3Q20
				(S2+S3) ratio			NPL ratio (S3 + refinanced loans)

Cost of risk - Commercial banking

	23.6%
		8.5%
4.3%
3Q19	2Q20	3Q20

142.1%	222.5%	NPL
coverage
		ratio
	12.6%
4.3%(1)
9M19	9M20

		Excl.
	2.5%	Reactiva:
	2Q20: 2.8%
		3Q20: 1.2%
		0.9%
0.4%		0.9342%
3Q19	2Q20	3Q20

	NPL
90.1%	112.1% coverage

ratio

		Excl.
	1.4%	Reactiva:
	1.6%
0.4%
9M19	9M20

Reported figures		Adjusted figures

1) Excluding reversion of payroll deduction loan provisions for S/ 38.8 million in 9M19. Including this effect cost of risk was 2.4% in 9M19, while retail cost of risk was 4.0% in the same period.

18

Double-digit reduction in expenses due to cost

5

containment measures

Interbank - Other expenses bridge from 3Q19 to 3Q20

Other expenses

YoY growth by line

3Q20 YoY growth

+5.6%

-24.3%

-30.8%

+3.8%

-10.8%

IFS

-10%

+4

+5

Interbank

-11%

412

-41

-12

367

Interseguro

-15%

Inteligo

-21%

3Q19 Technology

Salaries and

Mktg and

Other

3Q20

employee

credit card

benefits

expenses

Interbank - Other expenses bridge from 9M19 to 9M20

Efficiency ratio(1)

YoY growth by line

%

+7.3%

-14.4%

-22.1%

0.0%

-6.6%

		+15			+0
		-71	-23
	1,198						1,119

9M19

Technology

Salaries and

Mktg and

Other

9M20

						58.6%
34.7%		39.2%	34.7%
27.9%
				12.2%			19.5%
				9.6%
3Q19	3Q20	3Q19	3Q20	3Q19	3Q20	3Q19	3Q20

	employee	credit card
	benefits	expenses
19	1) Excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic in our banking segment for S/ 14.5 million or
S/ 10.2 million after taxes in 3Q20.

Highlights

01. Unique and diversified bank with ready-to-scale omnichannel platform

02. Outstanding track record of sustainable growth and high profitability

03. Unique culture and commitment to ESG

Highlights

01.	Unique and diversified bank with
ready-to-scale omnichannel platform

02. Outstanding track record of sustainable growth and high profitability

03. Unique culture and commitment to ESG

Distinctive focus on retail customers and consumer loans

Interbank

Strategic focus on retail and consumer loans…	…when compared to the banking system
Gross loans breakdown (as of September 2020)		Gross loans breakdown (as of September 2020)
			Credit	Banking System
Commercial			Commercial	Credit Cards
		Cards
53.7%		Mortgages	68.7%	18.9%
	28.3%
	38.4%		Retail	Mortgages
				49.1%
	Retail		31.3%
			Other
	46.3%
		Other		Consumer
				32.0%
			Consumer
			33.3%
	S/ 42.1BN	S/ 19.5BN	S/ 326.5BN	S/ 102.4BN

Leading position in credit cards and consumer loans	Outgrowing the overall banking system
Market share (as of September 2020)	Gross loans growth (September 2020 YoY)

		Credit cards (1)	Consumer loans (2)
		Others			Others	BCP
		19.3%
		28.6%	24.1%	24.2%
	Banco
	Falabella
	13.4%			BBVA
			BCP	13.3%
	Scotiabank	19.8%
	23.3%	Scotiabank
		15.4%
					18.6%
	Source: SBS as of September 2020.
	Note: Under Peruvian SBS GAAP. Banks include international branches.
22	1)	Consumer credit card loans.
2)	Consumer loans do not include mortgage loans.

Retail	Commercial
MS 19.0%	MS 10.1%
0.4%	44.8%

26.1%

-0.1%

SystemSystem System

Solid risk management capabilities

Interbank

Better asset quality than the system despite focus on retail

PDL ratio evolution

	Interbank	System
3.0%	3.0%	3.0%	3.3%
2.9%	2.6%	2.6%	2.7%
2017	2018	2019	Sep20

Adequate provisioning level…

Cost of risk (Provision expense as % of average total loans)

Local GAAP IFRS

7.1%

								4.9%
3.1%	3.1%	2.4%(1) 2.5%(2)	(3)	(4)	(5)	(6)
2.7%
		2.6%	2.6%	2.5%
2017	2018	2019		9M19	9M20

Balanced asset quality among businesses

PDL ratio as of September 2020

Commercial loans

Retail loans

Total loans

Scotiabank

4.3%

4Scotiabank.6%

4.4%

Scotiaba

BBVAB

3.0%

2.9%

BBVA

3.0%

BCP

2.5%

4.0%

BCP

2.9%

BCP

Interbank

1.4%

4.3%Interbank

2.7%

System: 3.0%

System: 3.9%

System: 3.3%

…results in strong coverage ratio

Coverage ratio (7) evolution

			Interbank			System	239.8%
179.8%160.6%	167.2%152.6%	175.0%				176.5%	187.3%
153.6%	152.1%

2016

2017

2018

2019

Sep20

	Source: SBS and Company information as of September 2020.
	1)	Cost of risk excluding the effect of voluntary provisions for S/ 100.0 million to cover potential risks related to the construction sector, net of a release of S/ 30.0 million. Including these items, cost of risk was 2.7% in 2018.
	2)	Cost of risk excluding the effect of a reversion of construction sector provisions for S/ 83.0 million in 2018. Including this item, cost of risk was 2.2% in such period.
	3)	Cost of risk excluding the effect of a release of S/ 15.4 million of voluntary provisions to cover potential risks related to the construction sector in 2019. Including this item, cost of risk remained at 2.7% in such period.
	4)	Cost of risk excluding the effect of a reversion of payroll deduction loan provisions for S/ 38.8 million and a reversion of loan loss provisions for S/ 104.1 million, both in 2019. Including this item, cost of risk was 2.2% in period.
23	5)	Cost of risk excluding the effect of the release of S/ 10.0 million of voluntary provisions to cover potential risks related to the construction sector in 9M19. Including these items, cost of risk remained at 2.6% in such period.
6)	Cost of risk excluding the effect of a reversion of payroll deduction loan provisions for S/ 38.8 million in 9M19. Including these items, cost of risk remained at 2.4% in such period.
	7)	Defined as allowance for loan losses as a percentage of past-due loans.

Diversified funding base with strength in retail deposits

Interbank

Consistently delivering higher deposit growth than the system

Total deposits growth evolution

MS 2014 11.6%

MS Sep20 13.1%

A growing retail deposit-gathering franchise

Total retail deposits growth evolution

MS 2014 12.1%

MS Sep20 13.9%

28.2%

11.1%

26.4%

8.1%

22.6%

23.8%

12.1% 9.8%

CAGR 2014-19		Sep20 YoY
		Interbank		System

Significant deposits base

Funding base breakdown (as of September 2020)

CAGR 2014-19		Sep20 YoY
		Interbank		System

Solid loan-to-deposit ratio and decreasing cost of funds

Loan-to deposit ratio

Cost of funds

(as of Sep20)

100.3%

2.9%

Bonds		Demand	Savings
10.8%		32.4%
	37.8%
	Deposits
Due to banks
71.9%
17.3%
			Time
			29.8%

99.0%

2.1%

System		9M19	9M20

24	Source: SBS and Company information as of September 2020.
Note: Under Peruvian SBS GAAP.

Key player in Peru's life insurance business

Interseguro

Strategic focus on life insurance…

Insurance premiums and collections breakdown (as of September 2020)

		Other life
		23.6%	Regulated
			annuities
			33.2%
P&C	Life	D&S
13.1%	86.9%	1.4%

Individual

life

22.4%Private annuities

19.4%

With a growing market share in annuities

… when compared to the insurance system

Insurance premiums and collections breakdown (as of September 2020)

	Insurance System	Regulated
			annuities
			11.4%
	Life	Other life	Private annuities
	13.2%
P&C	48.6%	38.8%
51.4%

Individual life

18.0%

D&S

18.6%

Largest investment portfolio in Peruvian insurance system

Annuities market share(1)

2017

Others

21.8%

23.6%

La Positiva

Vida

14.2%

Rímac

24.0%

Pacífico

Seguros

16.4%

	Source: SBS as of September 2020.
25	1)	Excluding private annuities.
	2)	Consolidates La Positiva and La Positiva Vida.

9M20

Others
20.3%	27.2%
Pacífico
Seguros
16.7%
Rímac	Protecta
24.0%
11.8%

Investment Portfolio as of September 2020 - Local GAAP (S/ mm)

12,927	12,114	11,742

5,391

Interseguro	Rímac	Pacífico Seguros	La Positiva(2)
	Rímac	Pacífico	La Positiva
		Seguros

Premiums growth affected by the COVID-19 pandemic

Interseguro

Introduction of new products to continue diversifying

Gross premiums and collections by business unit (S/ mm)

		Regulated			Private Annuities			Individual Life		Other Life		P&C		D&S
		Annuities
																		9M20
				937													YoY
				160	840							-20.5%
							12
				97	102						-12.8%
									649
622				136
11	110			10
78								78			5.0%
								516
				130	136
						101			6
128							68
54				178			100	106	-0.1%
	175
128									146	100	-40.1%
													87
222		264	275			214
								149			-30.5%
2017		2018	2019			9M19		9M20

Outgrowing insurance industry in Other life premiums (1)

YoY growth in premiums (as of September 2020)

6.5%

5.0%

-0.6%

-13.9%

Rímac

System

Pacífico

Seguros

	Source: SBS and Company information as of September 2020.
26	1) Other life includes Mandatory Traffic Accident (SOAT), Accidentes Personales, Car Insurance and Others.

Resilient wealth management business due to solid fee income

Inteligo

Positive trend in AUM growth			Solid fee generation due to client mix
Inteligo Group AUM (S/ mm)			Fees / Avg. AUM
	17,593	18,293	19,880	0.9%	0.9%	0.9%	0.9%
16,230	18,087

201720182019 Sep19 Sep202017201820199M20

	Strong core revenue generation					Higher profitability than direct competitor
S/ mm									ROE
			Net Interest Income		Net Fee Income			Other Income		28.5%		Inteligo Bank		Atlantic Security Bank
327			329					26.5%	25.3%
307							23.9%
						21.1%
77	33	58	228
								16.5%
						195
						28			14.4%
		164
152	164							11.3%
117	124
98	110	107	82	71
2017	2018	2019	9M19	9M20	2017	2018	2019	9M20

27

Source: Company information and Atlantic Security Bank's information as of September 30, 2020.

Our strategy is based on digital and analytics

We have built an scalable digital platform…

Increasing levels of adoption and customer satisfaction

Digital sales and new customer acquisition

Developing new businesses

… leveraging advanced analytics

More and better models

6x			•	Predictive and
				prescriptive models to
				improve effectiveness
			•	Machine learning and
2017		May20	deep learning

Faster time to market

14x

Faster • Efficient execution with cloud processing

• Clean, consistent and traceable data

2017 2019

28

Efficiency as our guiding principle to deal with the adverse environment

Optimizing our distribution channels

Units
	2018	Sep20	% Change
Financial	270	233	-14%
stores
ATMs	1,975	1,607	-19%
Correspondent	2,506	3,293	+31%
agents
Sales force	1,002	902	-10%
Call center	677	303	-55%
agents

Focus on efficiency ratio

Efficiency ratio (1)

	36.8%	34.6%	34.0%
		31.2%

Reducing other expenses following cost containment measures

1,464

1,374

9M19

9M20

Main actions and impacts

• As of November 2020, we have closed 22 branches, accumulating almost a 20% reduction from its peak in 2016, down to 233 branches
• Lower credit card and marketing variable expenses
• Lower HR variable expenses
• Specific cost contaiment programs implemented across all IFS' subsidiaries

2017

2018

2019

9M20

Source: Company information as of September 2020.

1. Efficiency ratio is defined as (Salaries and employee benefits + Administrative expenses + Depreciation and amortization) / (Net interest and similar income + Fee income + Other income + Net premiums

29	earned). Efficiency ratio excludes (i) the aggregate negative effect of new mortality tables in our insurance segment for S/ 144.8 million in 2018, (ii) the one-off impact of a Liability Management transaction in
	our banking segment for S/ 42.3 million in 2019, and (iii) the one-off impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the
	COVID-19 pandemic in our banking segment for S/ 151.1 million in 9M20. Including these effects, efficiency ratio was 35.6%, 34.3% and 32.4% in 2018, 2019 and 9M20, respectively.

Highlights

01. Unique and diversified bank with ready-to-scale omnichannel platform

02.	Outstanding track record of sustainable
growth and high profitability

03. Unique culture and commitment to ESG

Sustained loan growth supported by appropriate funding

IFS

Total gross loans

S/ mm

43,562

34,055 38,257 36,582

29,175

2017

2018

2019

Sep19

Sep20

Total deposits

S/ mm

45,209

32,608 33,682 38,093 36,277

2017

2018

2019

Sep19

Sep20

AUM evolution

S/ mm

16,230 17,593 18,293 18,087

19,880

Net shareholders' equity

S/ mm

8,903 8,481 8,335

7,088

5,837

2017	2018	2019	Sep19	Sep20	2017	2018	2019	Sep19	Sep20

31	Source: Company information as of September 2020.

Growth in total revenues despite impacts from the COVID-19 pandemic

IFS

Total revenues (1)

NIM

S/ mm

	5,384(3)
	4,889(2)
4,310	3,958	4,118(4)

2017

2018

2019

9M19

9M20

5.3%	5.4%	5.3%(3)	4.8%(4)
2017	2018	2019	9M20

Net profit

ROE

S/ mm

	1,479(3)
	1,236(2)
1,033	1,037

113(4)

2017

2018

2019

9M19

9M20

19.3%	18.4%(2)	18.6%(3)
			1.8%(4)
2017	2018	2019	9M20

	Source: Company information as of September 2020.
	1)	Total revenues calculated as the sum of net interest income, fee income from financial services, other income and net premiums earned.
	2)	Excluding the aggregate negative effect of new mortality tables in our insurance segment for S/ 144.8 million in 2018.
32	3)	Excluding the one-off impact of a Liability Management transaction in our banking segment for S/ 42.3 million, or S/ 29.0 million after taxes in 2019.
	4)	Excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic in our banking segment for S/ 151.1 million or
		S/ 106.6 million after taxes in 9M20.

Consistently delivering strong return to our shareholders…

Dividends declared (1)

			(S/ mm)											(S/ mm)
Net profit (2)	875		902	1,038	1,209				Net profit (2)	86		104	361	436
Payout Ratio	45%		45%	45%	25%				Payout Ratio	50%		96%	38%	46%
			394		406	467														200
						302									138
															43		100
			2016		2017	2018	2019						2016		2017	2018	2019
			(US$ mm)														(US$ mm)

	Net profit (2)	51	58	56	60			Net profit (2)	282	317	373	435
	Payout Ratio	79%	80%	71%	66%			Dividend per	1.30	1.40	1.75	1.75
			Share
				47														202
			41			40	40					146	158	197
			2016	2017	2018	2019					2016	2017	2018	2019
	Source: Company information.
33	1) Dividends are declared and paid in U.S. dollars. Represents dividends for the fiscal year which are declared and paid in the following year.

1. 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 3.375, 3.262, 3.318 and 3.314. for 2016, 2017, 2018 and 2019, 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.

Highlights

01. Unique and diversified bank with ready-to-scale omnichannel platform

02. Outstanding track record of sustainable growth and high profitability

03.	Unique culture and commitment to ESG

Evolving cultural transformation

Comprehensive transformational approach

New initiatives

User Empower IT all Peruvians

to achieve

financial well-being

Org

More than 100 teams working with agile framework

Innovation Labs

organizedsquads

35

A "Great Place to Work" with a distinctive culture and strong sense of achievement for new talent

Our commitment to fostering a performance-based culture is demonstrated by being ranked among the top Peruvian and Latin American companies

Top 20 in Peru	Top 10 in Peru
for the past 18 years	for the past 9 years

#8 in Latin America

in 2020

#1 in Peru

in 2019

#6 for women in Peru

in 2020

#4 for millennials in Peru

in 2020

#6 for diversity and inclusion in Peru

in 2020

#20 for women in Peru

In 2020

Top 15 in Peru

for the past 9 years

36

Strong corporate governance

Board of Directors

Carlos Rodríguez-Pastor

Chairman

Felipe Morris		Fernando Zavala
Director		Director

Alfonso Bustamante		Cayetana Aljovín
Independent Director		Independent Director

Guillermo Martínez		Hugo Santa María
Independent Director		Independent Director

37	1) Good Corporate Governance Index of the Lima Stock Exchange.

BOD with majority of independent members

IFS: 4 out of 7

Strong corporate

governance

Highly supervised related party exposure, well below regulatory limits

Governance in accordance with NYSE and SEC

Member of the Peruvian IBGC (1), an index of the 9 companies with recognized corporate governance in Peru

Committed to a vision of sustainability

E

(Environmental)

Operational eco-efficiency and waste management

31 Tons less paper

S

(Social)

Community; Diversity, Equity and Inclusion

OxI

Strategic alliances

G

(Governance)

Corporate governance, Ethics and integrity

4 out of 7 independent directors

Board of Specialized committees

directors

SEC/NYSE standards

Waste Electric and Electronic Equipment

260 kg recycled WEEE (Interbank)

6 Tons recycled paper and plastic (Interseguro)

	60% women at IFS
	50% women leadership:
Women	InWomen program
diversity
	(64 leaders)
	Top 3 in Peru

Highly supervised related party exposure

Compliance, Ethics, AML and Anticorruption

100% recycled toner (Interbank & Inteligo)

Top 10 in LatAm

Third party whistleblower

38

Highlights

01. Unique and diversified bank with ready-to-scale omnichannel platform

02. Outstanding track record of sustainable growth and high profitability

03. Unique culture and commitment to ESG

Appendix

Historical macroeconomic performance

Growing economy with low inflation levels

Growing GDP per capita and declining poverty rates

2015 - 2019 average real GDP growth rate	2015 - 2019 average consumer price
inflation rate

GDP per capita (US$)

% of population in poverty

3.2%	LatAm Peers		LatAm Peers	5.7%
Avg.: 1.5%		Avg.: 4.4%
		4.7%
2.4%
		4.0%
2.1%	2.0%			7,058
		2.7%	3.0%
				5,055
	(0.6%)
				2010	2019

30.8%
	20.2%
2010	2019

Most stable currency in the region

Expanding middle-upper socioeconomic segments

Indexed to 100
240
		222
200		176
160		149
		132
120		129
80

Jan-14

May-15

Oct-16

Mar-18

Aug-19

Jan-21

41

Peru

Chile

Mexico

Colombia

Brazil

Source: EIU and BCRP as of 2019, INEI as of 2019 and APEIM "Distribución de Hogares según NSE - Perú Urbano" as of 2010 and 2019. Bloomberg.

Peruvian households by socioeconomic segment (% of households)

Socioeconomic
Segments	2010		2019
						Over 57% of
A	2.7%		2.3%
		the population is
						between 20 and
B	10.3% 42%	13.8% 52%	65 years old
C	28.9%		35.5%
D	35.0%		31.8%
E	23.1%		16.6%

Resilient financial system

Gross loans growth and asset quality

Banking system gross loans (S/ bn)

PDL	3.0%	3.0%	3.0%	3.1%	3.3%
ratio
							327	CAGR
			286			2017-19
	246	271	280
							6.2%
							224
		176	181	178
	160
	85	95	105	103	102	11.1%
	2017	2018	2019		Sep19	Sep20
				Commercial		Retail

Solid total capital evolution

Banking system total capital ratio

Sustained profitability

Banking system net profit (S/ mm)

ROE	18.3%	18.5%	18.5%	19.3%	5.8%
		8,220	9,082
	7,442		7,000
					2,316
	2017	2018	2019	9M19	9M20

Sound Insurance premiums growth

Insurance industry total premiums (S/ mm)

15.2%	14.7%	14.6%	15.6%

12,869

14,114

11,327

10,318 9,892

2017

2018

2019

Sep20

42	Source: SBS as of September 2020.

2017

2018

2019

9M19

9M20

Underpenetrated Peruvian financial system

Banking				Insurance
Loans penetration				Insurance premiums penetration
2019 - Loans to GDP				2019 - Premiums to GDP
98.2%			4.7%
		4.0%
46.5%			2.8%	2.4%
42.4%					1.8%
37.2%
		22.3%

Retail loans penetration

3M20 - Retail loans (1) to GDP

42%

14%

Cards penetration

3M20 - # cards per inhabitant

0.3

0.2

Mortgage penetration

2019 - # of mortgages (mm)

1.6

0.2

Wealth management

Mutual funds penetration

2019 - Mutual funds' AuM to GDP

20.8%

5.7%

43	Source: BCRP, EIU, SBS, World Bank, SMV, Swiss Re Sigma 2020 Report, Financial Market Commission of Chile and other local regulators.
	1) Includes consumer and mortgage loans.

IFS income statement - IFRS (1)

Income Statement (S/ mm)	2017	2018	2018	9M 19	9M 29	% chg '19/'18	% chg
9M20 / 9M19
Interest and similar income	3,809.0	4,321.3	4,847.2	3,597.3	3,477.8	12.2%	(3.3%)
Interest and similar expenses	(1,121.8)	(1,179.6)	(1,428.7)	(1,037.3)	(930.1)	21.1%	(10.3%)
= Net interest and similar income	2,687. 3	3,141. 7	3,418. 5	2,560. 0	2,547. 6	8. 8%	(0. 5%)
Impairment loss on loans, net of recoveries	(827.9)	(660.1)	(750.8)	(603.0)	(2,066.4)	13.7%	n.m.
Recovery (loss) due to impairment of financial investments	(20.8)	13.1	(6.8)	1.5	(55.2)	n.m.	n.m.
= Net interest and similar income after impairment loss	1,838. 6	2,494. 7	2,660. 9	1,958. 6	426. 0	6. 7%	(78. 2%)
Fee income from financial, net	849.2	874.4	925.9	675.5	537.6	5.9%	(20.4%)
Other income	518.0	408.7	592.1	410.2	494.5	44.9%	20.5%
Insurance premiums and claims
Net premiums	495.4	645.4	649.1	493.1	421.2	0.6%	(14.6%)
Adjustment of technical reserves	(240.2)	(326.4)	(230.8)	(180.7)	(33.6)	(29.3%)	(81.4%)
Net claims and benefits incurred for life insurance contracts and others	(406.3)	(717.4)	(693.2)	(514.2)	(572.6)	(3.4%)	11.4%
= Total net premiums earned minus claims and benefits	(151. 1)	(398. 4)	(274. 9)	(201. 9)	(185. 1)	(31. 0%)	(8. 3%)
Other expenses	(1,710.6)	(1,837.5)	(1,978.3)	(1,464.4)	(1,373.8)	7.7%	(6.2%)
= Income before translation result and income tax	1,344. 1	1,541. 9	1,925. 7	1,378. 1	(100. 8)	24. 9%	n. m.
Translation result	15.9	(35.0)	17.8	5.2	(42.1)	n.m.	n.m.
Income tax	(326.5)	(415.5)	(493.3)	(346.0)	149.0	18.7%	n.m.
Net profit for the period	1,033. 5	1,091. 4	1,450. 1	1,037. 3	6. 1	32. 9%	(99. 4%)
Attributable to:
IFS' shareholders	1,027.4	1,084.3	1,441.3	1,030.9	7.3	32.9%	(99.3%)
Non-controlling interest	6.1	7.1	8.9	6.4	(1.1)	24.5%	n.m.

44	Source: Company information as of September 2020.
1) Our financial information for 2017 was restated as a result of a voluntary change in accounting policy regarding our method of accounting the variation in market interest rates on insurance contract liabilities.

IFS balance sheet - IFRS (1)

Balance Sheet (S/ mm)	2017	2018	2019	9M 19	9M 20	% chg '19/'18	% chg
9M20 / 9M19
Cash and due from banks	11,204.8	8,380.4	11,128.9	11,710.7	17,573.1	32.8%	50.1%
Inter-bank funds	403.5	495.0	85.0	0.0	0.0	(82.8%)	n.m.
Financial investments	16,924.1	17,629.4	19,072.7	18,353.2	22,787.9	8.2%	24.2%
Loans, net of unearned interest	29,406.3	34,325.7	38,531.6	36,880.4	43,962.9	12.3%	19.2%
Impairment allowance for loans	(1,202.1)	(1,364.8)	(1,394.8)	(1,465.1)	(3,116.5)	2.2%	n.m.
Investment property	1,118.6	986.5	972.1	962.2	1,044.8	(1.5%)	8.6%
Property, furniture and equipment, net(2)	612.6	622.5	950.9	879.8	875.0	52.8%	(0.6%)
Intangibles and goodwill, net	921.6	954.5	979.3	953.4	1,030.4	2.6%	8.1%
Other assets(3)	1,005.0	1,715.0	1,236.5	3,130.2	1,854.8	(27.9%)	(40.7%)
Total assets	60,394. 5	63,744. 4	71,562. 3	71,404. 9	86,012. 4	12. 3%	20. 5%
Liabilities and equity
Deposits and obligations	32,607.6	33,682.0	38,093.2	36,277.2	45,208.9	13.1%	24.6%
Inter-bank funds	30.0	0.0	169.1	15.0	0.0	n.m.	n.m.
Due to banks and correspondents	4,407.4	4,293.4	3,979.6	4,453.8	10,555.0	(7.3%)	n.m.
Bonds, notes and other obligations	5,602.4	6,496.8	6,890.3	8,339.3	7,696.1	6.1%	(7.7%)
Insurance contract liabilities	10,514.5	10,300.5	11,338.8	11,453.3	11,793.3	10.1%	3.0%
Other liabilities(2)(4)	1,395.7	1,883.4	2,187.7	2,385.7	2,424.0	16.2%	1.6%
Total liabilities	54,557. 6	56,655. 9	62,658. 8	62,924. 2	77,677. 2	10. 6%	23. 4%
Equity, net
Equity attributable to IFS' shareholders	5,800.5	7,048.1	8,856.9	8,436.2	8,291.7	25.7%	(1.7%)
Non-controlling interest	36.4	40.4	46.6	44.4	43.5	15.3%	(2.0%)
Total equity, net	5,836. 9	7,088. 5	8,903. 4	8,480. 6	8,335. 2	25. 6%	(1. 7%)
Total liabilities and equity net	60,394. 5	63,744. 4	71,562. 3	71,404. 9	86,012. 4	12. 3%	20. 5%

	Source: Company information as of September 2020.
	1)	Our financial information for 2017 was restated as a result of a voluntary change in accounting policy regarding our method of accounting the variation in market interest rates on insurance contract liabilities.
	2)	As of January 1, 2019 and due to the adoption of IFRS 16, we have recorded a S/ 341.7 million, increase in the caption "Property, furniture and equipment (Right-of-use assets)" and recorded simultaneously, an increase for the same amount, in the caption "Accounts
		payable, provisions and other liabilities (Lease liabilities)".
45	3)	"Other assets" is defined as due from customers on acceptances, accounts receivable and other assets, net and deferred income tax assets, net.
4)	"Other liabilities" is defined as due from customers on acceptances, accounts payable, provisions and other liabilities and deferred income tax liabilities, net.