Exhibit 99.1 |
Intercorp Financial Services Inc.
First Quarter 2020 Earnings
Lima, Peru, May 12, 2020. Intercorp Financial Services Inc. (Lima Stock Exchange/NYSE: IFS) announced today its unaudited results for the first quarter 2020. These results are reported on a consolidated basis under IFRS in nominal Peruvian soles.
Intercorp Financial Services: Profits reached S/ 145 million in 1Q20 and ROAE at 6.6% affected by higher provisions at Interbank and impacts on investments at Interseguro and Inteligo
| • | Relevant net income of S/ 218 million in 1Q20 |
| • | Early and fast response to an unprecedented situation has guaranteed continuity of our operations |
| • | Reinforced liquidity and capital position to face uncertain times to come |
| • | Clear opportunity to accelerate digital in the new normal, supported by ready-to-scale digital platform |
Interbank: Net profit decreased 17.1% YoY mainly due to higher provisions, ROAE at 13.8%
| • | Initial impacts of COVID-19 already reflected in 1Q20 key banking indicators |
| • | Continued growth in retail deposits and market share up to 13.7% after lockdown |
| • | Deceleration of loan growth and activity after lockdown, especially in retail (12.3% YoY growth) |
| • | First impact on provisions from COVID-19, NPL coverage at 136% |
| • | CET1 improved 180 bps YoY to 12.0%, enhanced by higher capitalization |
Interseguro: Quarterly results affected by negative impacts on investment portfolio due to the COVID-19 outbreak
| • | Net premiums grew 10.8% QoQ and 1.0% YoY mainly driven by retail insurance business |
| • | Market leader in annuities with a 27.9% share |
| • | ROIP of 4.2% in 1Q20, or 6.1% excluding COVID-19 one-offs, compared to 5.8% in 4Q19 and 1Q19 |
Inteligo: Quarterly results affected by negative impacts on investment portfolio due to the COVID-19 outbreak
| • | Fee income/average AUM remained stable QoQ and grew 10 bps YoY, to 1.0% in 1Q20 |
| • | AUM decreased QoQ due to mark-to-market, despite growth in net new money |
1
SUMMARY
Intercorp Financial Services’ Statement of financial position
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks and inter-bank funds |
|
| 9,730.6 |
|
|
| 11,213.9 |
|
|
| 11,733.3 |
|
|
| 4.6 | % |
|
| 20.6 | % |
Financial investments |
|
| 17,852.8 |
|
|
| 19,072.7 |
|
|
| 18,634.9 |
|
|
| (2.3 | )% |
|
| 4.4 | % |
Loans, net of unearned interest |
|
| 35,019.0 |
|
|
| 38,531.6 |
|
|
| 38,556.6 |
|
|
| 0.1 | % |
|
| 10.1 | % |
Impairment allowance for loans |
|
| (1,396.2 | ) |
|
| (1,394.8 | ) |
|
| (1,494.5 | ) |
|
| 7.2 | % |
|
| 7.0 | % |
Property, furniture and equipment, net |
|
| 948.5 |
|
|
| 950.9 |
|
|
| 935.6 |
|
|
| (1.6 | )% |
|
| (1.4 | )% |
Other assets |
|
| 3,601.6 |
|
|
| 3,187.9 |
|
|
| 3,445.7 |
|
|
| 8.1 | % |
|
| (4.3 | )% |
Total assets |
|
| 65,756.2 |
|
|
| 71,562.3 |
|
|
| 71,811.6 |
|
|
| 0.3 | % |
|
| 9.2 | % |
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 34,790.0 |
|
|
| 38,093.2 |
|
|
| 37,568.9 |
|
|
| (1.4 | )% |
|
| 8.0 | % |
Due to banks and correspondents and inter-bank funds |
|
| 3,832.6 |
|
|
| 4,148.8 |
|
|
| 5,446.1 |
|
|
| 31.3 | % |
|
| 42.1 | % |
Bonds, notes and other obligations |
|
| 6,663.2 |
|
|
| 6,890.3 |
|
|
| 6,973.4 |
|
|
| 1.2 | % |
|
| 4.7 | % |
Insurance contract liabilities |
|
| 10,407.2 |
|
|
| 11,338.8 |
|
|
| 11,064.3 |
|
|
| (2.4 | )% |
|
| 6.3 | % |
Other liabilities |
|
| 2,336.4 |
|
|
| 2,187.7 |
|
|
| 2,212.6 |
|
|
| 1.1 | % |
|
| (5.3 | )% |
Total liabilities |
|
| 58,029.4 |
|
|
| 62,658.8 |
|
|
| 63,265.3 |
|
|
| 1.0 | % |
|
| 9.0 | % |
Equity, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to IFS' shareholders |
|
| 7,686.8 |
|
|
| 8,856.9 |
|
|
| 8,499.6 |
|
|
| (4.0 | )% |
|
| 10.6 | % |
Non-controlling interest |
|
| 40.0 |
|
|
| 46.6 |
|
|
| 46.7 |
|
|
| 0.3 | % |
|
| 16.9 | % |
Total equity, net |
|
| 7,726.8 |
|
|
| 8,903.4 |
|
|
| 8,546.3 |
|
|
| (4.0 | )% |
|
| 10.6 | % |
Total liabilities and equity net |
|
| 65,756.2 |
|
|
| 71,562.3 |
|
|
| 71,811.6 |
|
|
| 0.3 | % |
|
| 9.2 | % |
Intercorp Financial Services’ net profit was S/ 144.9 million in 1Q20, a decrease of S/ 267.9 million QoQ, or 64.9%, and S/ 207.8 million YoY, or 58.9%. IFS annualized ROAE was 6.6% in 1Q20, below the 19.0% reported in both 4Q19 and 1Q19.
It is worth mentioning that IFS’s results were affected by (i) the reversion of loan loss provisions for S/ 73.4 million after taxes in 4Q19 due to fine-tuning of IFRS9 models reflecting improved risk profile on customers; (ii) the one-off impact of a liability management transaction on financial expense for S/ 29.0 million after taxes in 4Q19; and (iii) the COVID-19 outbreak in 1Q20, which negatively impacted Interbank’s revenue sources and asset quality, as well as Interseguro’s and Inteligo’s results from investments.
2
Intercorp Financial Services’ P&L statement
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 1,166.7 |
|
|
| 1,249.9 |
|
|
| 1,248.2 |
|
|
| (0.1 | )% |
|
| 7.0 | % | |
Interest and similar expenses |
|
| (342.5 | ) |
|
| (391.4 | ) |
|
| (339.5 | ) |
|
| (13.3 | )% |
|
| (0.9 | )% |
Net interest and similar income |
|
| 824.2 |
|
|
| 858.5 |
|
|
| 908.7 |
|
|
| 5.9 | % |
|
| 10.3 | % |
Impairment loss on loans, net of recoveries |
|
| (186.4 | ) |
|
| (147.9 | ) |
|
| (312.6 | ) |
| n.m. |
|
|
| 67.7 | % | |
Recovery (loss) due to impairment of financial investments |
|
| 1.9 |
|
|
| (8.3 | ) |
|
| (40.5 | ) |
| n.m. |
|
| n.m. |
| ||
Net interest and similar income after impairment loss |
|
| 639.7 |
|
|
| 702.3 |
|
|
| 555.6 |
|
|
| (20.9 | )% |
|
| (13.1 | )% |
Fee income from financial services, net |
|
| 223.0 |
|
|
| 250.3 |
|
|
| 220.3 |
|
|
| (12.0 | )% |
|
| (1.2 | )% |
Other income |
|
| 138.9 |
|
|
| 181.9 |
|
|
| 39.3 |
|
|
| (78.4 | )% |
|
| (71.7 | )% |
Total premiums earned minus claims and benefits |
|
| (67.4 | ) |
|
| (73.0 | ) |
|
| (59.4 | ) |
|
| (18.6 | )% |
|
| (11.8 | )% |
Net Premiums |
|
| 171.2 |
|
|
| 156.1 |
|
|
| 172.9 |
|
|
| 10.8 | % |
|
| 1.0 | % |
Adjustment of technical reserves |
|
| (73.3 | ) |
|
| (50.1 | ) |
|
| (48.4 | ) |
|
| (3.3 | )% |
|
| (33.9 | )% |
Net claims and benefits incurred |
|
| (165.3 | ) |
|
| (179.0 | ) |
|
| (183.9 | ) |
|
| 2.7 | % |
|
| 11.2 | % |
Other expenses |
|
| (481.7 | ) |
|
| (513.9 | ) |
|
| (511.2 | ) |
|
| (0.5 | )% |
|
| 6.1 | % |
Income before translation result and income tax |
|
| 452.5 |
|
|
| 547.6 |
|
|
| 244.6 |
|
|
| (55.3 | )% |
|
| (45.9 | )% |
Translation result |
|
| 10.1 |
|
|
| 12.5 |
|
|
| (23.9 | ) |
| n.m. |
|
| n.m. |
| ||
Income tax |
|
| (109.9 | ) |
|
| (147.3 | ) |
|
| (75.8 | ) |
|
| (48.5 | )% |
|
| (31.0 | )% |
Profit for the period |
|
| 352.7 |
|
|
| 412.8 |
|
|
| 144.9 |
|
|
| (64.9 | )% |
|
| (58.9 | )% |
Adjusted profit for the period(1) |
|
| 352.7 |
|
|
| 441.8 |
|
|
| 144.9 |
|
|
| (67.2 | )% |
|
| (58.9 | )% |
Attributable to IFS' shareholders |
|
| 350.6 |
|
|
| 410.3 |
|
|
| 143.4 |
|
|
| (65.1 | )% |
|
| (59.1 | )% |
EPS |
|
| 3.17 |
|
|
| 3.55 |
|
|
| 1.24 |
|
|
|
|
|
|
|
|
|
ROAE |
|
| 19.0 | % |
|
| 19.0 | % |
|
| 6.6 | % |
|
|
|
|
|
|
|
|
ROAA |
|
| 2.2 | % |
|
| 2.3 | % |
|
| 0.8 | % |
|
|
|
|
|
|
|
|
Efficiency ratio(1) |
|
| 33.9 | % |
|
| 33.3 | % |
|
| 36.4 | % |
|
|
|
|
|
|
|
|
(1) | 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. |
Quarter-on-quarter performance
Profits decreased 64.9% QoQ mainly due to higher impairment loss on loans at Interbank, in addition to reductions in other income at Inteligo and Interseguro, and in net fee income from financial services at Interbank. Furthermore, a loss due to impairment of financial investments at Interseguro and negative performances in translation result at all three subsidiaries also contributed to the quarterly reduction in earnings. These effects were partially compensated by higher net interest and similar income across all subsidiaries, in addition to higher net premiums earned at Interseguro and lower other expenses, also at Interseguro.
Net interest and similar income increased 5.9% QoQ, mainly due to a base effect related to a one-off expense from a liability management transaction in 4Q19; partially offset by lower interest on loans and on due from banks and inter-bank funds, all at Interbank.
Impairment loss on loans grew more than two-fold QoQ, mainly explained by higher requirements in credit cards and other consumer loans, as well as in exposures to medium-sized companies and small-sized companies, all related to the impacts of the COVID-19 outbreak on the bank’s expected loss models. It is worth noting that the QoQ growth was also explained by the reversion of loan loss provisions for S/ 104.1 million due to fine-tuning of IFRS9 models reflecting improved risk profile on Interbank’s customers in 4Q19. Excluding this effect, impairment loss on loans, net of recoveries would have increased 24.1% when compared to such quarter.
Net fee income from financial services decreased 12.0% QoQ, mainly explained by reductions in commissions from credit card services, fees from maintenance and mailing of accounts, transfer fees and commissions on debit card services, and commissions from banking services, all at Interbank. Additionally, a base effect at Inteligo due to above-average returns in various asset classes during 4Q19, as well as increased recurring income due to higher mark-to-market on AUM in such quarter, also contributed to the quarterly reduction in net fee income from financial services.
3
Other income decreased 78.4% QoQ mainly due to negative mark-to-market valuations and realized losses at both Inteligo and Interseguro, mostly attributed to the COVID-19 outbreak. This effect was partially offset by higher net gain on sale of financial investments at Interbank.
Total premiums earned minus claims and benefits at Interseguro showed a quarterly growth of S/ 13.6 million, explained by a S/ 16.8 million increase in net premiums and a S/ 1.7 million decrease in adjustment of technical reserves, partially offset by a S/ 4.9 million increase in net claims and benefits incurred.
Other expenses remained relatively stable QoQ as lower administrative expenses at Interseguro, mainly related to efficiencies implemented on IT services, were offset by higher incentive fees for annual performance at Inteligo.
IFS effective tax rate increased, from 26.3% in 4Q19 to 34.4% in 1Q20, mainly due to the negative contribution of Inteligo and Interseguro, in addition to the effect of a negative translation result.
Year-on-year performance
Profits decreased 58.9% YoY mostly due to higher impairment loss on loans at Interbank and other expenses at all three subsidiaries, in addition to reductions in other income mainly at Inteligo and Interseguro. Furthermore, a loss due to impairment of financial investments at Interseguro and negative performances in translation result at all three subsidiaries also contributed to the annual reduction in earnings. These effects were partially compensated by higher net interest and similar income at Interbank and Interseguro, as well as higher net premiums earned at Interseguro.
Net interest and similar income increased 10.3% YoY, mainly driven by higher interest on loans at Interbank and income from dividends at Interseguro.
Impairment loss on loans grew 67.7% mainly as a result of the impacts of the COVID-19 outbreak on the bank’s expected loss models.
Net fee income from financial services slightly decreased 1.2% YoY mainly due to higher eliminations upon consolidation, as well as to lower commissions from credit card services and higher variable expenses related to credit cards, both at Interbank. These effects were partially offset by higher brokerage fees due to increased trading volumes at Inteligo, triggered by higher price volatility and client appetite for investing or rebalancing portfolios.
Other income decreased 71.7% YoY mainly explained by negative mark-to-market valuations and realized losses at both Inteligo and Interseguro, mostly attributed to the COVID-19 outbreak.
Total premiums earned minus claims and benefits at Interseguro grew S/ 8.0 million explained by a S/ 24.9 million reduction in adjustment of technical reserves and a S/ 1.7 million increase in net premiums, partially offset by an S/ 18.6 million growth in net claims and benefits incurred.
Other expenses grew across all subsidiaries, in particular due to higher administrative expenses at Interbank, as well as to higher incentive fees for annual performance at Inteligo.
IFS effective tax rate increased, from 23.8% in 1Q19 to 34.4% in 1Q20, mainly attributed to the negative results at both Inteligo and Interseguro, in addition to the effect of a negative translation result.
CONTRIBUTION BY SEGMENTS
The following table shows the contribution of Interbank, Interseguro and Inteligo to Intercorp Financial Services’ net profit. The performance of each of the three segments is discussed in detail in the following sections.
4
Intercorp Financial Services’ Profit by segment
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interbank |
|
| 299.7 |
|
|
| 337.5 |
|
|
| 221.5 |
|
|
| (34.4 | )% |
|
| (26.1 | )% |
Interseguro |
|
| 28.9 |
|
|
| 34.7 |
|
|
| (21.6 | ) |
| n.m. |
|
| n.m. |
| ||
Inteligo |
|
| 78.3 |
|
|
| 69.6 |
|
|
| (54.7 | ) |
| n.m. |
|
| n.m. |
| ||
Corporate and eliminations |
|
| (54.2 | ) |
|
| (29.0 | ) |
|
| (0.4 | ) |
| n.m. |
|
| n.m. |
| ||
IFS profit for the period |
|
| 352.7 |
|
|
| 412.8 |
|
|
| 144.9 |
|
|
| (64.9 | )% |
|
| (58.9 | )% |
5
SUMMARY
Interbank’s profits reached S/ 221.5 million in 1Q20, a decrease of S/ 116.0 million QoQ and S/ 78.2 million YoY. The quarterly result was mainly attributed to a S/ 164.7 million increase in impairment loss on loans and a S/ 29.3 million reduction in net fee income from financial services. These effects were partially offset by a S/ 35.8 million increase in net interest and similar income.
The annual result was mainly due to increases of S/ 126.3 million in impairment loss on loans and S/ 25.0 million in other expenses, in addition to a S/ 23.4 million decrease in other income. These effects were partially offset by a S/ 76.7 million increase in net interest and similar income.
It is worth mentioning that Interbank’s results were affected by (i) the gain on sale of Interfondos, Interbank’s former mutual funds subsidiary, to Inteligo for S/ 32.4 million after taxes in 1Q19; (ii) the reversion of loan loss provisions for S/ 73.4 million after taxes in 4Q19 due to fine-tuning of IFRS9 models reflecting improved risk profile on customers; (iii) the one-off impact of a liability management transaction on financial expense for S/ 29.0 million after taxes in 4Q19; and (iv) the COVID-19 outbreak, which negatively impacted the bank’s revenue sources and asset quality in 1Q20.
Interbank’s ROAE was 13.8% in 1Q20, below the 21.8% registered in 4Q19 and the 22.1% reported in 1Q19. However, excluding the one-off impact of the liability management transaction in 4Q19 and the gain on sale of Interfondos in 1Q19, ROAE for such periods would have resulted in 23.6% and 19.8%, respectively.
Banking Segment’s P&L Statement
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 965.0 |
|
|
| 1,051.7 |
|
|
| 1,037.1 |
|
|
| (1.4 | )% |
|
| 7.5 | % |
Interest and similar expense |
|
| (307.4 | ) |
|
| (353.2 | ) |
|
| (302.8 | ) |
|
| (14.3 | )% |
|
| (1.5 | )% |
Net interest and similar income |
|
| 657.6 |
|
|
| 698.5 |
|
|
| 734.3 |
|
|
| 5.1 | % |
|
| 11.7 | % |
Impairment loss on loans, net of recoveries |
|
| (186.3 | ) |
|
| (147.9 | ) |
|
| (312.6 | ) |
| n.m. |
|
|
| 67.8 | % | |
Recovery (loss) due to impairment of financial investments |
|
| (0.0 | ) |
|
| 0.0 |
|
|
| (0.2 | ) |
| n.m. |
|
| n.m. |
| ||
Net interest and similar income after impairment loss |
|
| 471.2 |
|
|
| 550.6 |
|
|
| 421.5 |
|
|
| (23.5 | )% |
|
| (10.6 | )% |
Fee income from financial services, net |
|
| 193.4 |
|
|
| 219.7 |
|
|
| 190.4 |
|
|
| (13.4 | )% |
|
| (1.6 | )% |
Other income |
|
| 133.1 |
|
|
| 107.3 |
|
|
| 109.7 |
|
|
| 2.3 | % |
|
| (17.5 | )% |
Other expenses |
|
| (390.8 | ) |
|
| (413.1 | ) |
|
| (415.8 | ) |
|
| 0.6 | % |
|
| 6.4 | % |
Income before translation result and income tax |
|
| 406.9 |
|
|
| 464.5 |
|
|
| 305.8 |
|
|
| (34.2 | )% |
|
| (24.8 | )% |
Translation result |
|
| 0.2 |
|
|
| (3.3 | ) |
|
| (2.9 | ) |
| n.m. |
|
| n.m. |
| ||
Income tax |
|
| (107.4 | ) |
|
| (123.7 | ) |
|
| (81.4 | ) |
|
| (34.2 | )% |
|
| (24.2 | )% |
Profit for the period |
|
| 299.7 |
|
|
| 337.5 |
|
|
| 221.5 |
|
|
| (34.4 | )% |
|
| (26.1 | )% |
ROAE(1,2) |
|
| 19.8 | % |
|
| 23.6 | % |
|
| 13.8 | % |
|
|
|
|
|
|
|
|
Efficiency ratio(1,2) |
|
| 40.3 | % |
|
| 37.7 | % |
|
| 38.8 | % |
|
|
|
|
|
|
|
|
NIM(1) |
|
| 5.5 | % |
|
| 5.8 | % |
|
| 5.6 | % |
|
|
|
|
|
|
|
|
NIM on loans |
|
| 8.6 | % |
|
| 8.5 | % |
|
| 8.6 | % |
|
|
|
|
|
|
|
|
(1) | Excluding the gain on sale of Interfondos for S/ 52.6 million, or S/ 32.4 million after taxes, in 1Q19. Including this effect, ROAE and Efficiency ratio in such quarter were 22.1% and 38.2%, respectively. |
(2) Excluding the one-off impact of a liability management transaction for S/ 42.3 million, or S/ 29.0 million after taxes in 4Q19. Including this effect, ROAE, Efficiency ratio and NIM were 21.8%, 39.2% and 5.4% in such quarter.
INTEREST-EARNING ASSETS
Interbank’s interest-earning assets reached S/ 51,799.2 million as of March 31, 2020, an increase of 1.7% QoQ and 10.5% YoY.
The quarterly growth in interest-earning assets was attributed to increases of 8.6% in financial investments and 4.3% in cash and due from banks and inter-bank funds, while loan balances remained relatively stable QoQ. Growth in financial investments was mainly a result of higher balances of sovereign bonds, global bonds and corporate bonds from financial institutions, partially compensated by a reduction in Central Bank Certificates of Deposits (CDBCR). On the other hand, the increase in cash and due from banks and inter-bank funds was due to higher deposits and restricted funds at the Central Bank, and inter-bank funds.
6
The YoY increase in interest-earning assets was attributed to growth of 11.7% in cash and due from banks and inter-bank funds, 10.2% in loans and 9.8% in financial investments. The increase in cash and due from banks and inter-bank funds was mainly due to higher restricted funds and deposits at the Central Bank, while growth in financial investments, to higher volumes of sovereign bonds.
Interest-earning assets
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
Cash and due from banks and inter-bank funds |
|
| 9,217.9 |
|
|
| 9,870.9 |
|
|
| 10,295.8 |
|
|
| 4.3 | % |
|
| 11.7 | % |
Financial investments |
|
| 5,511.4 |
|
|
| 5,574.5 |
|
|
| 6,052.4 |
|
|
| 8.6 | % |
|
| 9.8 | % |
Loans |
|
| 32,159.2 |
|
|
| 35,512.5 |
|
|
| 35,451.0 |
|
|
| (0.2 | )% |
|
| 10.2 | % |
Total interest-earning assets |
|
| 46,888.5 |
|
|
| 50,957.9 |
|
|
| 51,799.2 |
|
|
| 1.7 | % |
|
| 10.5 | % |
Loan portfolio
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
Performing loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
| 17,205.6 |
|
|
| 19,161.2 |
|
|
| 19,313.4 |
|
|
| 0.8 | % |
|
| 12.3 | % |
Commercial |
|
| 14,994.8 |
|
|
| 16,304.5 |
|
|
| 16,106.0 |
|
|
| (1.2 | )% |
|
| 7.4 | % |
Total performing loans |
|
| 32,200.5 |
|
|
| 32,200.5 |
|
|
| 32,200.5 |
|
|
| (0.1 | )% |
|
| 10.0 | % |
Restructured and refinanced loans |
|
| 213.7 |
|
|
| 251.2 |
|
|
| 258.8 |
|
|
| 3.0 | % |
|
| 21.1 | % |
Past due loans |
|
| 867.2 |
|
|
| 943.2 |
|
|
| 1,004.2 |
|
|
| 6.5 | % |
|
| 15.8 | % |
Total gross loans |
|
| 33,281.4 |
|
|
| 33,281.4 |
|
|
| 33,281.4 |
|
|
| 0.1 | % |
|
| 10.2 | % |
Add (less) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued and deferred interest |
|
| 273.8 |
|
|
| 247.1 |
|
|
| 263.1 |
|
|
| 6.5 | % |
|
| (3.9 | )% |
Impairment allowance for loans |
|
| (1,396.1 | ) |
|
| (1,394.7 | ) |
|
| (1,494.4 | ) |
|
| 7.2 | % |
|
| 7.0 | % |
Total direct loans, net |
|
| 32,159.2 |
|
|
| 35,512.5 |
|
|
| 35,451.0 |
|
|
| (0.2 | )% |
|
| 10.2 | % |
Performing loans remained relatively stable QoQ as a 1.2% reduction in commercial loans was offset by a 0.8% growth in retail loans.
The quarterly decrease in commercial loans was mainly explained by lower leasing operations for medium-sized companies and trade finance loans in the corporate segment, partially offset by higher short and medium-term loans, mostly in the corporate segment.
The QoQ increase in retail loans was due to growth of 1.9% in other consumer loans and 1.5% in mortgages, partially compensated by a 1.2% reduction in credit cards. Growth in other consumer loans was mainly explained by higher cash loans and payroll deduction loans, while the increase in mortgages was due to a higher demand in both traditional and MiVivienda products.
Performing loans grew 10.0% YoY explained by increases of 12.3% in retail loans and 7.4% in commercial loans.
The annual growth in retail loans was mainly due to increases of 13.2% in credit cards, 12.4% in other consumer loans and 11.3% in mortgages. Other consumer loans grew as a result of higher cash loans, payroll deduction loans and car loans; while mortgages increased due to a higher demand in both traditional and MiVivienda products.
The YoY increase in commercial loans was mainly explained by higher trade finance loans for corporate and medium-sized companies, and short and medium-term lending for medium-sized companies.
7
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
| 5,125.0 |
|
|
| 5,870.0 |
|
|
| 5,800.4 |
|
|
| (1.2 | )% |
|
| 13.2 | % |
Other consumer |
|
| 5,769.5 |
|
|
| 6,365.2 |
|
|
| 6,486.1 |
|
|
| 1.9 | % |
|
| 12.4 | % |
Total consumer loans |
|
| 10,894.6 |
|
|
| 12,235.1 |
|
|
| 12,286.5 |
|
|
| 0.4 | % |
|
| 12.8 | % |
Mortgages |
|
| 6,311.1 |
|
|
| 6,926.0 |
|
|
| 7,027.0 |
|
|
| 1.5 | % |
|
| 11.3 | % |
Total retail loans |
|
| 17,205.6 |
|
|
| 19,161.2 |
|
|
| 19,313.4 |
|
|
| 0.8 | % |
|
| 12.3 | % |
FUNDING STRUCTURE
Funding structure
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
Deposits and obligations |
|
| 32,561.7 |
|
|
| 32,561.7 |
|
|
| 32,561.7 |
|
|
| (1.4 | )% |
|
| 7.7 | % |
Due to banks and correspondents and inter-bank funds |
|
| 3,512.6 |
|
|
| 3,512.6 |
|
|
| 3,512.6 |
|
|
| 32.8 | % |
|
| 44.8 | % |
Bonds, notes and other obligations |
|
| 5,610.9 |
|
|
| 5,610.9 |
|
|
| 5,610.9 |
|
|
| 0.5 | % |
|
| 3.9 | % |
Total |
|
| 41,685.3 |
|
|
| 41,685.3 |
|
|
| 41,685.3 |
|
|
| 1.7 | % |
|
| 10.3 | % |
% of funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 78.1 | % |
|
| 78.7 | % |
|
| 76.2 | % |
|
|
|
|
|
|
|
|
Due to banks and correspondents and inter-bank funds |
|
| 8.4 | % |
|
| 8.5 | % |
|
| 11.1 | % |
|
|
|
|
|
|
|
|
Bonds, notes and other obligations |
|
| 13.5 | % |
|
| 12.8 | % |
|
| 12.7 | % |
|
|
|
|
|
|
|
|
Interbank’s total funding base increased 1.7% QoQ, in line with the performance of interest-earning assets. This was mainly explained by a 32.8% growth in due to banks and correspondents and inter-bank funds, partially compensated by a 1.4% reduction in deposits and obligations. Bonds, notes and other obligations remained relatively stable QoQ.
The quarterly increase in due to banks and correspondents and inter-bank funds was the result of higher short-term funding from correspondent banks abroad, as well as higher medium-term funding from the Central Bank, both associated with the bank’s strategy to increase liquidity as part of the measures implemented to deal with the COVID-19 outbreak.
The QoQ reduction in deposits and obligations was mainly due to a 23.7% reduction in institutional deposits, partially compensated by increases of 5.2% in retail deposits and 2.8% in commercial deposits.
The bank’s total funding base increased 10.3% YoY, slightly below the annual growth in interest-earning assets, and was mainly explained by growth of 44.8% in due to banks and correspondents and inter-bank funds, 7.7% in deposits and obligations, and 3.9% in bonds, notes and other obligations.
The YoY increase in due to banks and correspondents and inter-bank funds was the result of higher medium-term funding from the Central Bank and COFIDE, as well as higher short-term funding from correspondent banks abroad.
The annual growth in deposits and obligations was mainly explained by increases of 15.0% in retail deposits, 2.5% in institutional deposits and 2.2% in commercial deposits.
The YoY increase in bonds, notes and other obligations was mainly attributable to two bond placements in the international market in September 2019, for S/ 312 million and US$ 400 million, both due in October 2026. This growth was partially compensated by the execution of an optional redemption of the prevailing “5.75% Senior Notes due 2020” corporate bonds between October and November of 2019, in addition to the execution of a call option in July 2019 for a US$ 30 million subordinated bond in the local market.
8
As of March 31, 2020, the proportion of deposits and obligations to total funding was 76.2%, lower than the 78.1% reported as of March 31, 2019. Likewise, the proportion of institutional deposits to total deposits decreased from 15.6% as of March 31, 2019 to 14.8% as of March 31, 2020.
Breakdown of deposits
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
By customer service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
| 14,626.0 |
|
|
| 15,981.9 |
|
|
| 16,816.6 |
|
|
| 5.2 | % |
|
| 15.0 | % |
Commercial |
|
| 12,440.9 |
|
|
| 12,366.7 |
|
|
| 12,710.5 |
|
|
| 2.8 | % |
|
| 2.2 | % |
Institutional |
|
| 5,069.2 |
|
|
| 6,806.4 |
|
|
| 5,193.8 |
|
|
| (23.7 | )% |
|
| 2.5 | % |
Other |
|
| 425.6 |
|
|
| 422.7 |
|
|
| 341.2 |
|
|
| (19.3 | )% |
|
| (19.8 | )% |
Total |
|
| 32,561.7 |
|
|
| 35,577.8 |
|
|
| 35,062.1 |
|
|
| (1.4 | )% |
|
| 7.7 | % |
By type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
| 10,779.4 |
|
|
| 10,979.6 |
|
|
| 10,874.2 |
|
|
| (1.0 | )% |
|
| 0.9 | % |
Savings |
|
| 10,680.3 |
|
|
| 11,384.9 |
|
|
| 12,580.6 |
|
|
| 10.5 | % |
|
| 17.8 | % |
Time |
|
| 11,087.6 |
|
|
| 13,207.0 |
|
|
| 11,592.6 |
|
|
| (12.2 | )% |
|
| 4.6 | % |
Other |
|
| 14.4 |
|
|
| 6.2 |
|
|
| 14.8 |
|
| n.m. |
|
|
| 2.8 | % | |
Total |
|
| 32,561.7 |
|
|
| 35,577.8 |
|
|
| 35,062.1 |
|
|
| (1.4 | )% |
|
| 7.7 | % |
NET INTEREST AND SIMILAR INCOME
Net interest and similar income
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 965.0 |
|
|
| 1,051.7 |
|
|
| 1,037.1 |
|
|
| (1.4 | )% |
|
| 7.5 | % |
Interest and similar expense |
|
| (307.4 | ) |
|
| (353.2 | ) |
|
| (302.8 | ) |
|
| (14.3 | )% |
|
| (1.5 | )% |
Net interest and similar income |
|
| 657.6 |
|
|
| 698.5 |
|
|
| 734.3 |
|
|
| 5.1 | % |
|
| 11.7 | % |
NIM(1) |
|
| 5.5 | % |
|
| 5.8 | % |
|
| 5.6 | % |
|
| -20 | bps |
|
| 10 | bps |
(1) | Excluding the one-off impact of a liability management transaction for S/ 42.3 million in 4Q19. Including this effect, NIM was 5.4% in such period. |
Interest and similar income
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from banks and inter-bank funds |
|
| 25.2 |
|
|
| 24.0 |
|
|
| 15.9 |
|
|
| (33.5 | )% |
|
| (36.8 | )% |
Financial investments |
|
| 51.8 |
|
|
| 49.7 |
|
|
| 51.7 |
|
|
| 4.1 | % |
|
| (0.1 | )% |
Loans |
|
| 888.0 |
|
|
| 978.1 |
|
|
| 969.4 |
|
|
| (0.9 | )% |
|
| 9.2 | % |
Total Interest and similar income |
|
| 965.0 |
|
|
| 1,051.7 |
|
|
| 1,037.1 |
|
|
| (1.4 | )% |
|
| 7.5 | % |
Average interest-earning assets |
|
| 47,530.3 |
|
|
| 51,372.6 |
|
|
| 52,823.1 |
|
|
| 2.8 | % |
|
| 11.1 | % |
Average yield on assets (annualized) |
|
| 8.1 | % |
|
| 8.2 | % |
|
| 7.9 | % |
|
| -30 | bps |
|
| -20 | bps |
9
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Deposits and obligations |
|
| (179.1 | ) |
|
| (178.3 | ) |
|
| (174.8 | ) |
|
| (1.9 | )% |
|
| (2.4 | )% |
Due to banks and correspondents and inter-bank funds |
|
| (39.0 | ) |
|
| (39.5 | ) |
|
| (38.1 | ) |
|
| (3.5 | )% |
|
| (2.3 | )% |
Bonds, notes and other obligations |
|
| (89.3 | ) |
|
| (135.4 | ) |
|
| (89.9 | ) |
|
| (33.6 | )% |
|
| 0.6 | % |
Total Interest and similar expense |
|
| (307.4 | ) |
|
| (353.2 | ) |
|
| (302.8 | ) |
|
| (14.3 | )% |
|
| (1.5 | )% |
Average interest-bearing liabilities |
|
| 41,166.4 |
|
|
| 45,154.5 |
|
|
| 45,598.4 |
|
|
| 1.0 | % |
|
| 10.8 | % |
Average cost of funding (annualized)(1) |
|
| 3.0 | % |
|
| 2.8 | % |
|
| 2.7 | % |
|
| -10 | bps |
|
| -30 | bps |
(1) | Excluding the one-off impact of a liability management transaction for S/ 42.3 million in 4Q19. Including this effect, the annualized average cost of funding was 3.1% in such period. |
QoQ Performance
Net interest and similar income increased 5.1% QoQ due to a 14.3% decrease in interest and similar expense, partially offset by a 1.4% reduction in interest and similar income.
The lower interest and similar expense was due to reductions of 33.6% in interest on bonds, notes and other obligations, 3.5% in interest on due to banks and correspondents, and 1.9% in interest on deposits and obligations.
The reduction in interest on bonds, notes and other obligations was mainly due to a base effect related to the execution of an optional redemption of the prevailing “5.75% Senior Notes due 2020” corporate bonds in 4Q19, which implied a non-recurring financial expense of S/ 42.3 million in such quarter, as these bonds were being negotiated above its face value (above par). Excluding this effect, the financial expense on bonds would have decreased 3.5% QoQ.
Interest on due to banks and correspondents decreased S/ 1.4 million, or 3.5% QoQ, due to a reduction of 60 basis points in the average cost, partially offset by a 12.1% growth in the average volume. The lower average cost was due to reductions in rates paid on funding provided by correspondent banks abroad, inter-bank funds and funding provided by COFIDE. On the other hand, the increase in the average volume was attributed to growth in all components, mainly in funding provided by correspondent banks abroad and the Central Bank.
The quarterly decrease in interest on deposits and obligations was due to a 10 basis point reduction in the average cost, partially compensated by a 1.9% growth in the average volume. The decrease in the average cost was due to lower rates paid to commercial deposits, while rates on both retail and institutional deposits remained stable. The higher average volume was explained by growth in retail and institutional deposits, partially offset by lower commercial deposits. By currency, average balances of soles-denominated deposits grew 2.7% while average dollar-denominated deposits remained relatively stable.
The average cost of funding decreased 40 basis points QoQ, from 3.1% in 4Q19 to 2.7% in 1Q20, in line with the lower implicit cost on all components of interest-bearing liabilities. Excluding the expense of the optional redemption of corporate bonds in 4Q19, the average cost of funding would have decreased 10 basis points QoQ.
The 1.4% decrease in interest and similar income was due to reductions of 33.5% in interest on due from banks and inter-bank funds, and 0.9% in interest on loans, partially compensated by a 4.1% increase in interest on financial investments.
Interest on due from banks and inter-bank funds decreased S/ 8.1 million, or 33.5% QoQ, explained by a 40 basis points reduction in the nominal average rate, partially offset by 1.4% growth in the average volume. The decrease in the nominal average rate was due to lower returns on deposits at the Central Bank and inter-bank funds. On the other hand, the increase in the average volume was due to higher deposits at the Central Bank and inter-bank funds, partially compensated by lower reserve funds at the Central Bank.
The lower interest on loans was due to a 30 basis point reduction in the average yield, partially compensated by 2.3% growth in the average loan portfolio.
The lower average rate on loans, from 10.8% in 4Q19 to 10.5% in 1Q20, was explained by yield reductions of 50 basis points in commercial loans and 20 basis points in retail loans. The decrease in commercial loans was due to lower average rates on short and
10
medium-term loans, trade finance loans and leasing operations. In the retail portfolio, rates decreased as the result of lower yields on mortgages and consumer loans. It is worth mentioning that, as a result of the loan rescheduling carried out as part of the measures implemented to deal with the COVID-19 outbreak, a portion of the interest on loans from March 2020 was rescheduled, affecting the average yield on loans in 1Q20.
The higher average volume of loans was attributed to increases of 2.5% in commercial loans and 2.1% in retail loans. In the commercial portfolio, the higher average volume was mainly due to growth of 2.0% in short and medium-term loans, and 1.9% in trade finance loans, partially compensated by a 5.2% reduction in leasing operations. In the retail portfolio, average volumes increased 2.3% in mortgages and 1.3% in both payroll deduction loans and credit cards.
Interest on financial investments increased S/ 2.0 million, or 4.1% QoQ, due to a 9.4% growth in the average volume, partially compensated by a 10 basis point reduction in the average yield. The increase in the average volume was a consequence of higher investments in sovereign bonds, corporate bonds from financial institutions and global bonds, partially offset by lower balances of CDBCR and corporate bonds from non-financial institutions. The lower average yield was due to decreases in returns on global bonds, corporate bonds from financial institutions and CDBCR.
The nominal average yield on interest-earning assets decreased 30 basis points QoQ, from 8.2% in 4Q19 to 7.9% in 1Q20, as a consequence of the lower returns on all of the interest-earning assets.
As a result of the above, net interest margin increased 20 basis points, from 5.4% in 4Q19 to 5.6% in 1Q20. However, excluding the expense of the optional redemption of corporate bonds in 4Q19, net interest margin would have decreased 20 basis points QoQ.
YoY Performance
Net interest and similar income grew 11.7% YoY due to a 7.5% increase in interest and similar income, and a 1.5% reduction in interest and similar expense.
Growth in interest and similar income was mainly due to a 9.2% increase in interest on loans, partially offset by a 36.8% decrease in interest on due to banks and inter-bank funds. Interest on financial investments remained relatively stable.
The increase in interest on loans was due to an 11.4% growth in the average volume of loans, partially compensated by a 20 basis point reduction in the average yield.
The higher average volume of loans was attributed to increases of 14.1% in retail loans and 8.2% in commercial loans. In the retail portfolio, volumes grew 17.0% in credit cards, 12.0% in mortgages and 8.8% in payroll deduction loans. In the commercial portfolio, the higher average volume was mainly due to growth of 19.8% in trade finance loans and 2.5% in short and medium-term loans, partially offset by an 11.7% reduction in leasing operations.
The annual decrease in the average rate on loans, from 10.7% in 1Q19 to 10.5% in 1Q20, was due to an 80 basis point reduction in commercial loans, partially compensated by a 10 basis point growth in retail loans. The decrease in commercial loans was due to lower yields on all types of loans, while the increase in retail loans, to higher yields on credit cards. It is worth mentioning that the lower rates on commercial loans were partially explained by the loan rescheduling carried out as part of the measures implemented to deal with the COVID-19 outbreak.
Interest on due from banks and inter-bank funds decreased S/ 9.3 million, or 36.8% YoY, explained by a 60 basis point reduction in the average yield, partially compensated by a 15.7% growth in the average volume. The decrease in the nominal average rate was mainly related to lower returns on deposits and reserve funds at the Central Bank, partially offset by higher yields on inter-bank funds. On the other hand, the increase in the average volume was explained by higher reserve funds and deposits at the Central Bank, partially compensated by a lower average balance of inter-bank funds.
Interest on financial investments remained stable as a 10 basis point reduction in the average yield, from 3.7% in 1Q19 to 3.6% in 1Q20, was offset by a 2.7% increase in the average volume. The decrease in the average rate was due to lower yields on global bonds,
11
sovereign bonds, CDBCR and corporate bonds from non-financial institutions. On the other hand, the increase in the average volume was the result of higher average balances of sovereign bonds.
The nominal average yield on interest-earning assets decreased 20 basis points YoY, from 8.1% in 1Q19 to 7.9% in 1Q20, in line with the lower returns on all of the interest-earning assets.
The lower interest and similar expense was due to reductions of 2.4% in interest on deposits and obligations, and 2.3% in interest on due to banks and correspondents. Interest on bonds remained relatively stable YoY.
Interest on deposits and obligations decreased S/ 4.3 million, or 2.4% YoY, explained by a 20 basis point reduction in the average cost, from 2.2% in 1Q19 to 2.0% in 1Q20, partially offset by a 10.6% growth in the average volume. The lower average cost was due to reductions in rates paid to institutional and commercial deposits, partially compensated by a higher rate on retail deposits. The higher average volume was explained by growth in institutional, retail and commercial deposits. By currency, average balances of soles-denominated deposits grew 19.4% while average dollar-denominated deposits decreased 3.5%.
The S/ 0.9 million, or 2.3% YoY, decrease in interest on due to banks and correspondents was the result of an 80 basis point reduction in the average cost, from 4.2% in 1Q19 to 3.4% in 1Q20, partially compensated by a 19.2% growth in the average volume. The decrease in the average cost was due to lower rates paid to inter-bank funds and funding from correspondent banks abroad, the Central Bank and COFIDE. On the other hand, the higher average volume was explained by growth in funding from the Central Bank, correspondent banks abroad and COFIDE, as well as by higher inter-bank funds.
The average cost of funding decreased 30 basis points YoY, from 3.0% in 1Q19 to 2.7% in 1Q20, in line with the lower cost on deposits and obligations, and on due to banks and correspondents.
As a result of the above, net interest margin was 5.6% in 1Q20, 10 basis points higher than the 5.5% reported in 1Q19.
IMPAIRMENT LOSS ON LOANS, NET OF RECOVERIES
Impairment loss on loans, net of recoveries increased more than two-fold QoQ and 67.8% YoY. The quarterly and annual performances were mainly explained by higher requirements in credit cards and other consumer loans, as well as in exposures to medium-sized companies and small-sized companies, all related to the impacts of the COVID-19 outbreak on the bank’s expected loss models. It is worth noting that the QoQ growth was also explained by the reversion of loan loss provisions for S/ 104.1 million due to fine-tuning of IFRS9 models reflecting improved risk profile on customers in 4Q19. Excluding this effect, impairment loss on loans, net of recoveries would have increased 24.0% when compared to such quarter.
As a result of the above, the annualized ratio of impairment loss on loans to average loans was 3.4% in 1Q20, higher than the 1.7% reported in 4Q19 and the 2.3% registered in 1Q19. However, excluding the previously mentioned reversion of provisions in 4Q19, the annualized ratio of impairment loss on loans to average loans would have increased 60 basis points QoQ.
Impairment loss on loans, net of recoveries
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Impairment loss on loans, net of recoveries(1) |
|
| (186.3 | ) |
|
| (147.9 | ) |
|
| (312.6 | ) |
|
| 111.4 | % |
|
| 67.8 | % |
Impairment loss on loans/average gross loans(1) |
|
| 2.3 | % |
|
| 2.8 | % |
|
| 3.4 | % |
|
| 60 | bps |
|
| 110 | bps |
NPL ratio (at end of period) |
|
| 2.9 | % |
|
| 2.9 | % |
|
| 2.7 | % |
|
| -20 | bps |
|
| -20 | bps |
NPL coverage ratio (at end of period) |
|
| 131.4 | % |
|
| 117.7 | % |
|
| 136.1 | % |
| n.m. |
|
|
| 470 | bps | |
Impairment allowance for loans |
|
| 1,396.1 |
|
|
| 1,394.7 |
|
|
| 1,494.4 |
|
|
| 7.2 | % |
|
| 7.0 | % |
(1) | Excluding reversion of loan loss provisions for S/ 104.1 million in 4Q19 due to fine-tuning of IFRS9 models reflecting improved risk profile on customers. Including this effect, cost of risk was 1.7% in such period. |
The NPL ratio decreased 20 basis points QoQ and YoY. The quarterly and annual reductions were related to improvements in the retail portfolio, as the NPL ratio in the commercial portfolio remained stable. The improvement in retail loans was associated with
12
reductions in stage 3 and refinanced exposures in both consumer loans and mortgages. It is worth mentioning that the rescheduling of loans related to COVID-19 has not accounted for higher stage 3 nor refinanced exposures as of March 31, 2020.
Furthermore, the NPL coverage ratio was 136.1% as of March 31, 2020, higher than the 117.7% reported as of December 31, 2019, and the 131.4% registered as of March 31, 2019. NPL coverage ratio in credit cards was 221.4% as of March 31, 2020.
FEE INCOME FROM FINANCIAL SERVICES, NET
Net fee income from financial services decreased S/ 29.3 million QoQ, or 13.4%, mainly explained by reductions of S/ 13.3 million in commissions from credit card services, S/ 8.5 million in fees from maintenance and mailing of accounts, transfer fees and commissions on debit card services, and S/ 5.3 million in commissions from banking services.
Net fee income from financial services decreased S/ 3.0 million YoY, or 1.6%, mainly due to a S/ 6.4 million reduction in commissions from credit card services, as well as to higher variable expenses related to credit cards. These effects were partially offset by S/ 9.6 million higher commissions from banking services.
Fee income from financial services, net
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions from credit card services |
|
| 97.5 |
|
|
| 104.4 |
|
|
| 91.1 |
|
|
| (12.8 | )% |
|
| (6.6 | )% |
Commissions from banking services |
|
| 76.5 |
|
|
| 91.4 |
|
|
| 86.1 |
|
|
| (5.9 | )% |
|
| 12.5 | % |
Maintenance and mailing of accounts, transfer fees and commissions on debit card services |
|
| 57.1 |
|
|
| 64.6 |
|
|
| 56.1 |
|
|
| (13.2 | )% |
|
| (1.7 | )% |
Fees from indirect loans |
|
| 13.8 |
|
|
| 13.4 |
|
|
| 12.9 |
|
|
| (3.4 | )% |
|
| (6.4 | )% |
Collection services |
|
| 9.9 |
|
|
| 10.6 |
|
|
| 10.0 |
|
|
| (6.0 | )% |
|
| 0.9 | % |
Other |
|
| 8.3 |
|
|
| 11.5 |
|
|
| 8.4 |
|
|
| (27.0 | )% |
|
| 0.7 | % |
Total income |
|
| 263.0 |
|
|
| 295.9 |
|
|
| 264.5 |
|
|
| (10.6 | )% |
|
| 0.6 | % |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance |
|
| (27.1 | ) |
|
| (24.6 | ) |
|
| (25.4 | ) |
|
| 3.3 | % |
|
| (6.1 | )% |
Fees paid to foreign banks |
|
| (3.7 | ) |
|
| (4.4 | ) |
|
| (3.2 | ) |
|
| (26.9 | )% |
|
| (11.9 | )% |
Other |
|
| (38.9 | ) |
|
| (47.1 | ) |
|
| (45.5 | ) |
|
| (3.6 | )% |
|
| 16.8 | % |
Total expenses |
|
| (69.7 | ) |
|
| (76.2 | ) |
|
| (74.1 | ) |
|
| (2.7 | )% |
|
| 6.4 | % |
Fee income from financial services, net |
|
| 193.4 |
|
|
| 219.7 |
|
|
| 190.4 |
|
|
| (13.4 | )% |
|
| (1.6 | )% |
OTHER INCOME
Other income increased S/ 2.4 million QoQ, explained by higher net gain on sale of financial investments, partially offset by lower net gain on foreign exchange transactions and on financial assets at fair value through profit or loss, in addition to a negative base effect related to the gain on sale of written-off loans registered in 4Q19.
Other income decreased S/ 23.4 million YoY mainly due to a base effect, explained by the S/ 52.6 million gain on sale of Interfondos to Inteligo in 1Q19.
Other income
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Net gain on foreign exchange transactions and on financial assets at fair value through profit or loss |
|
| 49.3 |
|
|
| 77.9 |
|
|
| 59.9 |
| (1) |
|
| (23.1 | )% |
|
| 21.4 | % |
Net gain on sale of financial investments |
|
| 11.5 |
|
|
| 2.1 |
|
|
| 37.5 |
|
|
| n.m. |
|
| n.m. |
| ||
Other |
|
| 72.2 |
|
|
| 27.4 |
|
|
| 12.4 |
|
|
|
| (54.7 | )% |
|
| (82.8 | )% |
Total other income |
|
| 133.1 |
|
|
| 107.3 |
|
|
| 109.7 |
|
|
|
| 2.3 | % |
|
| (17.5 | )% |
(1) | Includes S/ 131.3 million of net gain on foreign exchange transactions and S/ -71.5 million of net gain (loss) on financial assets at fair value though profit or loss (derivatives). |
13
OTHER EXPENSES
Other expenses remained relatively stable QoQ and grew S/ 25.0 million YoY, or 6.4%.
The annual growth in other expenses was explained by increases in salaries and employee benefits, IT services and amortization expenses.
The efficiency ratio was 38.8% in 1Q20, below the 39.2% reported in 4Q19, but above the 38.2% registered in 1Q19. However, excluding the one-off impacts from the liability management transaction in 4Q19 and the gain on sale of Interfondos in 1Q19, efficiency ratio for such periods was 37.7% and 40.3%, respectively.
Other expenses
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Salaries and employee benefits |
|
| (162.3 | ) |
|
| (164.2 | ) |
|
| (168.6 | ) |
|
| 2.7 | % |
|
| 3.9 | % |
Administrative expenses |
|
| (157.9 | ) |
|
| (180.0 | ) |
|
| (175.4 | ) |
|
| (2.6 | )% |
|
| 11.1 | % |
Depreciation and amortization |
|
| (55.4 | ) |
|
| (58.3 | ) |
|
| (57.4 | ) |
|
| (1.5 | )% |
|
| 3.7 | % |
Other |
|
| (15.3 | ) |
|
| (10.6 | ) |
|
| (14.3 | ) |
|
| 34.5 | % |
|
| (6.6 | )% |
Total other expenses |
|
| (390.8 | ) |
|
| (413.1 | ) |
|
| (415.8 | ) |
|
| 0.6 | % |
|
| 6.4 | % |
Efficiency ratio(1) |
|
| 40.3 | % |
|
| 37.7 | % |
|
| 38.8 | % |
|
| 110 | bps |
|
| -150 | bps |
(1) | Excluding the gain on sale of Interfondos for S/ 52.6 million in 1Q19 and the one-off impact of a liability management transaction for S/ 42.3 million in 4Q19. Including these effects, efficiency ratio was 38.2% in 1Q19 and 39.2% in 4Q19. |
REGULATORY CAPITAL
The ratio of regulatory capital to risk-weighted assets (RWA) was 16.1% as of March 31, 2020, higher than the 15.2% registered as of December 31, 2019, but lower than the 16.4% reported as of March 31, 2019.
In 1Q20, regulatory capital increased 7.6% QoQ, while RWA grew 1.2% mainly due to higher capital requirements for credit risk, which includes the effect of growth in loans and financial investments.
The annual reduction in the capital ratio was due to a 12.8% growth in RWA, partially offset by a 10.7% increase in regulatory capital. The YoY increase in RWA was mostly attributed to loan growth and the higher risk weights applied to intangible assets by disposition of the SBS, with impact on the bank’s increasing digital investments. The annual increase in regulatory capital was mainly a result of the addition of S/ 731.1 million in capital, reserves and earnings with capitalization agreement during the last twelve months, as well as the lower deduction in regulatory capital due to the sale of IFS’ shares in July 2019 as part of IFS’ IPO in NYSE, partially compensated by the elimination of a US$ 30 million subordinated bond, which was called for early redemption in July 2019.
It is worth mentioning that in 2017 the SBS initiated the implementation of an additional set of Basel III measures. Among these, it stands out that there will be an annual 10% phase out of all Tier I instruments issued prior to the publication by the SBS of the new subordinated debt regulation. Additionally, the amount not computable as primary capital could be eligible as secondary capital. As of March 31, 2020, 40% of the US$ 200 million junior subordinated bond issued in April 2010 no longer count as primary capital, higher than the percentage registered as of December 31, 2019. This resulted in a US$ 20 million YoY reduction in primary capital, equivalent to the amount now registered as secondary capital.
As of March 31, 2020, Interbank’s capital ratio of 16.1% was significantly higher than its risk-adjusted minimum capital ratio requirement, established at 11.4%. The minimum regulatory capital ratio requirement was 10.0%, while the additional capital requirement for Interbank was 1.4% as of March 31, 2020. Furthermore, Core Equity Tier 1 (CET1) as of March 31, 2020 increased 180 basis points YoY, to 12.0%, mainly as a result of the strengthened capitalization and the lower deduction in regulatory capital due to the sale of IFS’ shares in July 2019 as part of IFS’ IPO in NYSE, and despite the 12.8% growth in RWA in the comparable period.
14
S/ million |
| 03.31.19 |
|
| 12.31.19 |
|
| 03.31.20 |
|
| %chg 03.31.20/ 12.31.19 |
|
| %chg 03.31.20/ 03.31.19 |
| |||||
Tier I capital |
|
| 5,452.8 |
|
|
| 5,721.7 |
|
|
| 6,218.8 |
|
|
| 8.7 | % |
|
| 14.0 | % |
Tier II capital |
|
| 2,014.1 |
|
|
| 1,957.6 |
|
|
| 2,045.2 |
|
|
| 4.5 | % |
|
| 1.5 | % |
Total regulatory capital |
|
| 7,466.9 |
|
|
| 7,679.3 |
|
|
| 8,264.0 |
|
|
| 7.6 | % |
|
| 10.7 | % |
Risk-weighted assets |
|
| 45,446.8 |
|
|
| 50,673.8 |
|
|
| 51,265.3 |
|
|
| 1.2 | % |
|
| 12.8 | % |
BIS ratio |
|
| 16.4 | % |
|
| 15.2 | % |
|
| 16.1 | % |
|
| 90 | bps |
|
| -30 | bps |
Tier I capital / risk-weighted assets |
|
| 12.0 | % |
|
| 11.3 | % |
|
| 12.1 | % |
|
| 80 | bps |
|
| 10 | bps |
CET1 |
|
| 10.2 | % |
|
| 11.6 | % |
|
| 12.0 | % |
|
| 40 | bps |
|
| 180 | bps |
15
SUMMARY
Interseguro’s results reached S/ -21.6 million in 1Q20, compared to profits of S/ 34.7 million in 4Q19 and S/ 28.9 million in 1Q19.
The quarterly reduction was mainly explained by a S/ 33.3 million decrease in other income, a deterioration of S/ 31.8 million in loss due to impairment of financial investments, and a negative performance in translation result of S/ 24.3 million. These factors were partially offset by increases of S/ 13.6 million in total premiums earned minus claims and benefits, and S/ 13.4 million in net interest and similar income, as well as by a S/ 6.5 million reduction in other expenses.
The annual reduction was mainly a result of a loss due to impairment of financial investments for S/ 42.5 million, a negative performance in translation result of S/ 17.0 million, and a S/ 7.5 million decrease in other income, partially offset by increases of S/ 10.2 million in net interest and similar income and S/ 8.0 million in total premiums earned minus claims and benefits.
Insurance Segment’s P&L Statement
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 156.8 |
|
|
| 155.6 |
|
|
| 167.9 |
|
|
| 7.9 | % |
|
| 7.1 | % |
Interest and similar expenses |
|
| (20.3 | ) |
|
| (22.3 | ) |
|
| (21.2 | ) |
|
| (4.7 | )% |
|
| 4.2 | % |
Net Interest and similar income |
|
| 136.5 |
|
|
| 133.3 |
|
|
| 146.7 |
|
|
| 10.0 | % |
|
| 7.5 | % |
Recovery (loss) due to impairment of financial investments |
|
| 2.4 |
|
|
| (8.3 | ) |
|
| (40.1 | ) |
| n.m. |
|
| n.m. |
| ||
Net Interest and similar income after impairment loss |
|
| 138.8 |
|
|
| 125.0 |
|
|
| 106.6 |
|
|
| (14.7 | )% |
|
| (23.2 | )% |
Fee income from financial services, net |
|
| (1.0 | ) |
|
| (0.8 | ) |
|
| (1.0 | ) |
|
| 23.5 | % |
|
| 2.8 | % |
Other income |
|
| 24.8 |
|
|
| 50.6 |
|
|
| 17.3 |
|
|
| (65.9 | )% |
|
| (30.5 | )% |
Total premiums earned minus claims and benefits |
|
| (67.4 | ) |
|
| (73.0 | ) |
|
| (59.4 | ) |
|
| (18.6 | )% |
|
| (11.8 | )% |
Net premiums |
|
| 171.2 |
|
|
| 156.1 |
|
|
| 172.9 |
|
|
| 10.8 | % |
|
| 1.0 | % |
Adjustment of technical reserves |
|
| (73.3 | ) |
|
| (50.1 | ) |
|
| (48.4 | ) |
|
| (3.3 | )% |
|
| (33.9 | )% |
Net claims and benefits incurred |
|
| (165.3 | ) |
|
| (179.0 | ) |
|
| (183.9 | ) |
|
| 2.7 | % |
|
| 11.2 | % |
Other expenses |
|
| (70.7 | ) |
|
| (78.9 | ) |
|
| (72.4 | ) |
|
| (8.2 | )% |
|
| 2.4 | % |
Income before translation result and income tax |
|
| 24.6 |
|
|
| 22.9 |
|
|
| (9.0 | ) |
| n.m. |
|
| n.m. |
| ||
Translation result |
|
| 4.4 |
|
|
| 11.7 |
|
|
| (12.6 | ) |
| n.m. |
|
| n.m. |
| ||
Income tax |
|
| — |
|
|
| — |
|
|
| — |
|
| n.m. |
|
| n.m. |
| ||
Profit for the period |
|
| 28.9 |
|
|
| 34.7 |
|
|
| (21.6 | ) |
| n.m. |
|
| n.m. |
| ||
ROAE |
|
| 12.8 | % |
|
| 14.7 | % |
| n.m. |
|
|
|
|
|
|
|
|
| |
Efficiency ratio |
|
| 13.2 | % |
|
| 14.2 | % |
|
| 12.0 | % |
|
|
|
|
|
|
|
|
16
Results from Investments (1)
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 156.8 |
|
|
| 155.6 |
|
|
| 167.9 |
|
|
| 7.9 | % |
|
| 7.1 | % |
Interest and similar expenses |
|
| (9.5 | ) |
|
| (11.9 | ) |
|
| (10.0 | ) |
|
| (15.8 | )% |
|
| 5.5 | % |
Net interest and similar income |
|
| 147.3 |
|
|
| 143.7 |
|
|
| 157.9 |
|
|
| 9.9 | % |
|
| 7.2 | % |
Recovery (loss) due to impairment of financial investments |
|
| 2.4 |
|
|
| (8.3 | ) |
|
| (40.1 | ) |
| n.m. |
|
| n.m. |
| ||
Net Interest and similar income after impairment loss |
|
| 149.7 |
|
|
| 135.4 |
|
|
| 117.8 |
|
|
| (13.0 | )% |
|
| (21.3 | )% |
Net gain (loss) on sale of financial investments |
|
| (6.2 | ) |
|
| 13.5 |
|
|
| 23.9 |
|
|
| 77.7 | % |
| n.m. |
| |
Net gain (loss) on financial assets at fair value through profit or loss |
|
| 15.5 |
|
|
| 12.3 |
|
|
| (31.6 | ) |
| n.m. |
|
| n.m. |
| ||
Rental income |
|
| 9.0 |
|
|
| 11.3 |
|
|
| 9.1 |
|
|
| (19.5 | )% |
|
| 0.6 | % |
Gain on sale of investment property |
|
| — |
|
|
| (1.2 | ) |
|
| — |
|
| n.m. |
|
| n.m. |
| ||
Valuation gain (loss) from investment property |
|
| 1.3 |
|
|
| 9.8 |
|
|
| 11.5 |
|
|
| 16.7 | % |
| n.m. |
| |
Other |
|
| (3.2 | ) |
|
| (3.2 | ) |
|
| (3.4 | ) |
|
| 5.1 | % |
|
| 5.3 | % |
Other income |
|
| 16.5 |
|
|
| 42.4 |
|
|
| 9.5 |
|
|
| (77.6 | )% |
|
| (42.4 | )% |
Results from investments |
|
| 166.1 |
|
|
| 177.8 |
|
|
| 127.3 |
|
|
| (28.4 | )% |
|
| (23.4 | )% |
(1) | Only includes transactions related to investments. |
NET INTEREST AND SIMILAR INCOME
Net interest and similar income related to investments was S/ 157.9 million in 1Q20, an increase of S/ 14.2 million, or 9.9%, QoQ and S/ 10.6 million, or 7.2%, YoY.
The quarterly growth was mainly explained by a S/ 12.3 million increase in interest and similar income, mostly attributed to a higher inflation rate that had a positive impact on returns of the fixed income portfolio.
The annual increase was largely explained by an S/ 11.9 million growth in interest and similar income, due to improved returns on the equity portfolio attributable to higher income from dividends received in 1Q20 which did not exist in 1Q19. Additionally, a higher organic growth of the fixed income portfolio also contributed to the YoY growth in net interest and similar income.
RECOVERY (LOSS) DUE TO IMPAIRMENT OF FINANCIAL INVESTMENTS
Loss due to impairment of financial investments was S/ 40.1 million in 1Q20, compared to a loss of S/ 8.3 million in 4Q19 and a recovery of S/ 2.4 million in 1Q19.
The quarterly and annual performances were mainly due to an additional provision for impairment on a fixed income investment that had been downgraded in relation to the COVID-19 outbreak.
OTHER INCOME
Other income related to investments was S/ 9.5 million in 1Q20, a decrease of S/ 32.9 million QoQ and S/ 7.0 million YoY.
The quarterly and annual results were mainly explained by lower net gain (loss) on financial assets at fair value, mostly related to negative mark-to-market valuations as a result of the COVID-19 outbreak. The quarterly reduction was partially offset by an increase in net gain on sale of financial investments, while the annual decrease, by growth in net gain on sale of financial investments and in valuation gain from investment property.
17
TOTAL PREMIUMS EARNED MINUS CLAIMS AND BENEFITS
Total Premiums Earned Minus Claims And Benefits
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Net premiums |
|
| 171.2 |
|
|
| 156.1 |
|
|
| 172.9 |
|
|
| 10.8 | % |
|
| 1.0 | % |
Adjustment of technical reserves |
|
| (73.3 | ) |
|
| (50.1 | ) |
|
| (48.4 | ) |
|
| (3.3 | )% |
|
| (33.9 | )% |
Net claims and benefits incurred |
|
| (165.3 | ) |
|
| (179.0 | ) |
|
| (183.9 | ) |
|
| 2.7 | % |
|
| 11.2 | % |
Total premiums earned minus claims and benefits |
|
| (67.4 | ) |
|
| (73.0 | ) |
|
| (59.4 | ) |
|
| (18.6 | )% |
|
| (11.8 | )% |
Total premiums earned minus claims and benefits were S/ -59.4 million in 1Q20, an increase of S/ 13.6 million QoQ and S/ 8.0 million YoY.
The quarterly growth was the result of a S/ 16.8 million increase in net premiums and a S/ 1.7 million decrease in adjustment of technical reserves, partially offset by a S/ 4.9 million increase in net claims and benefits incurred.
The annual performance was explained by a S/ 24.9 million reduction in adjustment of technical reserves and a S/ 1.7 million increase in net premiums, partially offset by an S/ 18.6 million growth in net claims and benefits incurred.
NET PREMIUMS
Net Premiums by Business Line
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Annuities |
|
| 80.9 |
|
|
| 62.6 |
|
|
| 72.8 |
|
|
| 16.3 | % |
|
| (10.1 | )% |
D&S |
|
| 0.7 |
|
|
| 0.0 |
|
|
| 0.1 |
|
| n.m. |
|
|
| (82.9 | )% | |
Individual Life |
|
| 32.1 |
|
|
| 34.3 |
|
|
| 32.6 |
|
|
| (4.9 | )% |
|
| 1.4 | % |
Retail Insurance |
|
| 57.5 |
|
|
| 59.2 |
|
|
| 67.4 |
|
|
| 13.8 | % |
|
| 17.2 | % |
Net Premiums |
|
| 171.2 |
|
|
| 156.1 |
|
|
| 172.9 |
|
|
| 10.8 | % |
|
| 1.0 | % |
Net premiums were S/ 172.9 million in 1Q20, an increase of S/ 16.8 million, or 10.8%, QoQ and S/ 1.7 million, or 1.0%, YoY.
The quarterly result was due to growth of S/ 10.2 million in annuities and S/ 8.2 million in retail insurance. The increase in annuities was explained by a higher commercial deployment in the first two months of the quarter, while growth in retail insurance, to increases in premiums for card protection insurance and credit life insurance. These factors were partially compensated by a reduction of S/ 1.7 million in individual life premiums.
The annual performance in net premiums was mainly due to an increase of S/ 9.9 million in retail insurance, explained by higher premiums for credit life insurance and card protection insurance, partially offset by a reduction of S/ 8.1 million in annuities.
ADJUSTMENT OF TECHNICAL RESERVES
Adjustment of Technical Reserves by Business Line
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Annuities |
|
| (49.7 | ) |
|
| (27.0 | ) |
|
| (44.0 | ) |
|
| 63.0 | % |
|
| (11.4 | )% |
Individual Life |
|
| (21.9 | ) |
|
| (23.5 | ) |
|
| 7.2 |
|
| n.m. |
|
| n.m. |
| ||
Retail Insurance |
|
| (1.7 | ) |
|
| 0.4 |
|
|
| (11.6 | ) |
| n.m. |
|
| n.m. |
| ||
Adjustment of technical reserves |
|
| (73.3 | ) |
|
| (50.1 | ) |
|
| (48.4 | ) |
|
| (3.3 | )% |
|
| (33.9 | )% |
18
Adjustment of technical reserves was S/ 48.4 million in 1Q20, a decrease of S/ 1.7 million QoQ and S/ 24.9 million YoY.
The quarterly and annual reductions were mainly related to a release of technical reserves for individual life, in turn associated with a lower profitability of flex life products, which are linked to equity investments on behalf of clients.
Furthermore, the quarterly decrease was partially offset by increases of S/ 17.0 million in adjustment of technical reserves for annuities and S/ 12.0 million for retail insurance. The former was mostly related to higher technical reserves for inflation-indexed annuities due to growth in inflation rate and sales, while the latter, to a one-time provision expense in card protection insurance to assess the potential increase of unemployment in the following months as a consequence of the COVID-19 outbreak.
On the other hand, the annual reduction in adjustment of technical reserves was also explained by a S/ 5.7 million decrease in annuities, partially offset by an increase of S/ 9.9 million in retail insurance.
NET CLAIMS AND BENEFITS INCURRED
Net Claims and Benefits Incurred by Business Line
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Annuities |
|
| (150.0 | ) |
|
| (162.3 | ) |
|
| (161.4 | ) |
|
| (0.6 | )% |
|
| 7.6 | % |
D&S |
|
| 0.6 |
|
|
| (1.2 | ) |
|
| (0.4 | ) |
|
| (70.4 | )% |
| n.m. |
| |
Individual Life |
|
| 0.8 |
|
|
| (1.4 | ) |
|
| (1.5 | ) |
|
| 3.6 | % |
| n.m. |
| |
Retail Insurance |
|
| (16.6 | ) |
|
| (14.0 | ) |
|
| (20.6 | ) |
|
| 47.1 | % |
|
| 23.6 | % |
Net claims and benefits incurred |
|
| (165.3 | ) |
|
| (179.0 | ) |
|
| (183.9 | ) |
|
| 2.7 | % |
|
| 11.2 | % |
Net claims and benefits incurred reached S/ 183.9 million in 1Q20, an increase of S/ 4.9 million QoQ and S/ 18.6 million YoY.
The quarterly growth was mainly the result of a S/ 6.6 million increase in retail insurance claims, mostly related to credit life insurance.
The annual increase in net claims and benefits incurred was explained by increases of S/ 11.4 million in annuity benefits, S/ 4.0 million in retail insurance claims, S/ 2.3 million in individual life claims and S/ 1.0 million in disability and survivorship claims.
OTHER EXPENSES
Other Expenses
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Salaries and employee benefits |
|
| (18.0 | ) |
|
| (19.7 | ) |
|
| (18.9 | ) |
|
| (3.9 | )% |
|
| 5.2 | % |
Administrative expenses |
|
| (11.1 | ) |
|
| (15.7 | ) |
|
| (9.2 | ) |
|
| (41.5 | )% |
|
| (16.9 | )% |
Depreciation and amortization |
|
| (5.0 | ) |
|
| (5.7 | ) |
|
| (6.4 | ) |
|
| 11.5 | % |
|
| 26.8 | % |
Expenses related to rental income |
|
| (1.5 | ) |
|
| (1.1 | ) |
|
| (1.4 | ) |
|
| 26.7 | % |
|
| (9.1 | )% |
Other |
|
| (35.1 | ) |
|
| (36.7 | ) |
|
| (36.5 | ) |
|
| (0.4 | )% |
|
| 4.2 | % |
Other expenses |
|
| (70.7 | ) |
|
| (78.9 | ) |
|
| (72.4 | ) |
|
| (8.2 | )% |
|
| 2.4 | % |
Other expenses decreased S/ 6.5 million QoQ, or 8.2%, and grew S/ 1.7 million YoY, or 2.4%.
The quarterly reduction was mainly due to decreases of S/ 6.5 million in administrative expenses, explained by efficiencies implemented on IT services, and S/ 0.8 million in salaries and employee benefits, partially offset by increases of S/ 0.7 million in depreciation and amortization charges, and S/ 0.3 million in expenses related to rental income.
The annual result in other expenses was mainly due to growth of S/ 1.4 million in both other expenses such as third-party commissions, and depreciation and amortization charges, in addition to a S/ 0.9 million increase in salaries and employee benefits, partially offset by a reduction of S/ 1.9 million in administrative expenses.
19
Inteligo
SUMMARY
Inteligo’s bottom-line result was S/ -54.7 million in 1Q20, compared to profits of S/ 69.6 million in 4Q19 and S/ 78.3 million in 1Q19.
The main driver behind the QoQ and YoY performance was the higher volatility of global financial markets during the second half of the quarter, mainly attributable to the COVID-19 outbreak. This generated negative mark-to-market valuations on the proprietary portfolio during the period, as well as realized losses under certain investment strategies. It is worth mentioning that interest and similar income remained relatively stable QoQ, despite an environment of low rates on funds available and short-term spread compression in loans to clients.
From a business development perspective, albeit impacted by the limited mobility due to the implementation of lockdown measures, Inteligo’s prospection process showed positive results in terms of new account openings and the generation of net new money.
Wealth Management Segment’s P&L Statement
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 45.6 |
|
|
| 41.0 |
|
|
| 41.1 |
|
|
| 0.3 | % |
|
| (9.9 | )% |
Interest and similar expense |
|
| (14.9 | ) |
|
| (16.3 | ) |
|
| (15.5 | ) |
|
| (4.4 | )% |
|
| 4.6 | % |
Net interest and similar income |
|
| 30.7 |
|
|
| 24.7 |
|
|
| 25.5 |
|
|
| 3.4 | % |
|
| (16.9 | )% |
Impairment loss on loans, net of recoveries |
|
| (0.1 | ) |
|
| 0.0 |
|
|
| (0.0 | ) |
| n.m. |
|
| n.m. |
| ||
Recovery (loss) due to impairment of financial investments |
|
| (0.5 | ) |
|
| (0.0 | ) |
|
| (0.2 | ) |
| n.m. |
|
| n.m. |
| ||
Net interest and similar income after impairment loss |
|
| 30.2 |
|
|
| 24.7 |
|
|
| 25.3 |
|
|
| 2.5 | % |
|
| (16.0 | )% |
Fee income from financial services, net |
|
| 38.9 |
|
|
| 47.0 |
|
|
| 43.0 |
|
|
| (8.5 | )% |
|
| 10.5 | % |
Other income |
|
| 36.8 |
|
|
| 30.0 |
|
|
| (85.8 | ) |
| n.m. |
|
| n.m. |
| ||
Other expenses |
|
| (26.9 | ) |
|
| (33.2 | ) |
|
| (34.9 | ) |
|
| 5.2 | % |
|
| 29.7 | % |
Income before translation result and income tax |
|
| 79.0 |
|
|
| 68.6 |
|
|
| (52.3 | ) |
| n.m. |
|
| n.m. |
| ||
Translation result |
|
| 0.7 |
|
|
| 2.3 |
|
|
| (3.0 | ) |
| n.m. |
|
| n.m. |
| ||
Income tax |
|
| (1.4 | ) |
|
| (1.3 | ) |
|
| 0.7 |
|
| n.m. |
|
| n.m. |
| ||
Profit for the period |
|
| 78.3 |
|
|
| 69.6 |
|
|
| (54.7 | ) |
| n.m. |
|
| n.m. |
| ||
ROAE |
|
| 38.1 | % |
|
| 33.6 | % |
| n.m. |
|
|
|
|
|
|
|
|
| |
Efficiency ratio |
|
| 25.2 | % |
|
| 32.4 | % |
| n.m. |
|
|
|
|
|
|
|
|
|
ASSETS UNDER MANAGEMENT & DEPOSITS
AUM reached S/ 18,005.9 million in 1Q20, a S/ 287.1 million or 1.6% decrease QoQ and a S/ 236.8 million or 1.3% growth YoY.
The quarterly reduction in AUM was mostly related to negative mark-to-market valuations as a result of the COVID-19 outbreak, despite growth in net new money for the period. On the other hand, the annual increase was mainly explained by new account openings, which generated an influx of funds after strengthened prospection and client conversion strategies at Inteligo.
Client deposits reached S/ 2,886.8 million in 1Q20, remaining relatively stable QoQ and growing S/ 338.4 million, or 13.3% YoY, mainly due to new account openings.
20
NET INTEREST AND SIMILAR INCOME
Net interest and similar income
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from banks and inter-bank funds |
|
| 2.1 |
|
|
| 4.0 |
|
|
| 2.7 |
|
|
| (32.4 | )% |
|
| 29.6 | % |
Financial Investments |
|
| 25.3 |
|
|
| 18.8 |
|
|
| 21.2 |
|
|
| 12.5 | % |
|
| (16.4 | )% |
Loans |
|
| 18.2 |
|
|
| 18.2 |
|
|
| 17.2 |
|
|
| (5.2 | )% |
|
| (5.3 | )% |
Total interest and similar income |
|
| 45.6 |
|
|
| 41.0 |
|
|
| 41.1 |
|
|
| 0.3 | % |
|
| (9.9 | )% |
Interest and similar expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| (11.5 | ) |
|
| (14.3 | ) |
|
| (13.7 | ) |
|
| (3.6 | )% |
|
| 19.6 | % |
Due to banks and correspondents |
|
| (3.4 | ) |
|
| (2.0 | ) |
|
| (1.8 | ) |
|
| (10.1 | )% |
|
| (46.6 | )% |
Total interest and similar expense |
|
| (14.9 | ) |
|
| (16.3 | ) |
|
| (15.5 | ) |
|
| (4.4 | )% |
|
| 4.6 | % |
Net interest and similar income |
|
| 30.7 |
|
|
| 24.7 |
|
|
| 25.5 |
|
|
| 3.4 | % |
|
| (16.9 | )% |
Inteligo’ s net interest and similar income was S/ 25.5 million in 1Q20, a S/ 0.8 million or 3.4% increase when compared with 4Q19. This was mainly explained by an increase in interest income driven by a higher average balance of fixed income investments, in addition to a reduction in interest expense related to lower funding costs of both client deposits and external lines of credit.
Net interest and similar income decreased S/ 5.2 million or 16.9% YoY. This was mainly attributed to lower average returns on financial investments and higher costs of client deposits.
FEE INCOME FROM FINANCIAL SERVICES
Fee income from financial services, net
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage and custody services |
|
| 3.9 |
|
|
| 3.4 |
|
|
| 5.7 |
|
|
| 70.2 | % |
|
| 46.9 | % |
Funds management |
|
| 35.4 |
|
|
| 44.0 |
|
|
| 37.7 |
|
|
| (14.5 | )% |
|
| 6.4 | % |
Total income |
|
| 39.3 |
|
|
| 47.4 |
|
|
| 43.4 |
|
|
| (8.5 | )% |
|
| 10.4 | % |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage and custody services |
|
| (0.2 | ) |
|
| (0.3 | ) |
|
| (0.1 | ) |
|
| (48.6 | )% |
|
| (44.6 | )% |
Others |
|
| (0.1 | ) |
|
| (0.1 | ) |
|
| (0.2 | ) |
|
| 69.2 | % |
|
| 63.4 | % |
Total expenses |
|
| (0.4 | ) |
|
| (0.4 | ) |
|
| (0.4 | ) |
|
| (8.6 | )% |
|
| (5.3 | )% |
Fee income from financial services, net |
|
| 38.9 |
|
|
| 47.0 |
|
|
| 43.0 |
|
|
| (8.5 | )% |
|
| 10.5 | % |
Net fee income from financial services was S/ 43.0 million in 1Q20, a decrease of S/ 4.0 million, or 8.5% when compared to the previous quarter. The reduction in fee income for the quarter was mainly explained by a base effect due to above-average returns in various asset classes during 4Q19, as well as increased recurring income due to higher mark-to-market on AUM in such quarter.
On a YoY basis, net fee income from financial services increased S/ 4.1 million, or 10.5%, mainly explained by higher brokerage fees due to increased trading volumes, triggered by higher price volatility and client appetite for investing or rebalancing portfolios.
21
Other income
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Net gain on sale of financial investments |
|
| 24.5 |
|
|
| (0.2 | ) |
|
| (33.1 | ) |
| n.m. |
|
| n.m. |
| ||
Net trading gain (loss) |
|
| 14.8 |
|
|
| 32.5 |
|
|
| (51.2 | ) |
| n.m. |
|
| n.m. |
| ||
Other |
|
| (2.5 | ) |
|
| (2.4 | ) |
|
| (1.4 | ) |
|
| (38.5 | )% |
|
| (42.2 | )% |
Total other income |
|
| 36.8 |
|
|
| 30.0 |
|
|
| (85.8 | ) |
| n.m. |
|
| n.m. |
|
Inteligo’s other income (loss) reached S/ -85.8 million in 1Q20, a decrease of S/ 115.8 million QoQ and S/ 122.6 million YoY, attributable to negative mark-to-market valuations and realized losses on Inteligo’s proprietary portfolio during the second half of the quarter, mainly as a result of the COVID-19 outbreak.
OTHER EXPENSES
Other expenses
S/ million |
| 1Q19 |
|
| 4Q19 |
|
| 1Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Salaries and employee benefits |
|
| (15.1 | ) |
|
| (17.8 | ) |
|
| (20.9 | ) |
|
| 17.2 | % |
|
| 38.1 | % |
Administrative expenses |
|
| (9.2 | ) |
|
| (10.6 | ) |
|
| (10.0 | ) |
|
| (5.2 | )% |
|
| 8.2 | % |
Depreciation and amortization |
|
| (2.5 | ) |
|
| (4.6 | ) |
|
| (4.0 | ) |
|
| (13.4 | )% |
|
| 61.1 | % |
Other |
|
| (0.1 | ) |
|
| (0.2 | ) |
|
| (0.0 | ) |
| n.m. |
|
| n.m. |
| ||
Total other expenses |
|
| (26.9 | ) |
|
| (33.2 | ) |
|
| (34.9 | ) |
|
| 5.2 | % |
|
| 29.7 | % |
Efficiency ratio |
|
| 25.2 | % |
|
| 32.4 | % |
| n.m. |
|
|
|
|
|
|
|
|
|
Other expenses reached S/ 34.9 million in 1Q20, an increase of S/ 1.7 million, or 5.2% QoQ, and S/ 8.0 million, or 29.7% YoY. The result was mainly related to incentive fees for annual performance.
22
Intercorp Financial Services Inc. and Subsidiaries
Interim condensed consolidated financial statements as of March 31, 2020, December 31, 2019 and for the three-month periods ended March 31, 2020 and 2019
Interim condensed consolidated financial statements as of March 31, 2020, December 31, 2019 and for the three-month periods ended March 31, 2020 and 2019
Content
Interim condensed consolidated financial statements
Consolidated statement of financial position
As of March 31, 2020 (unaudited) and December 31, 2019 (audited)
|
| Note |
|
| 31.03.2020 |
|
| 31.12.2019 |
| |||
|
|
|
|
|
| S/(000) |
|
| S/(000) |
| ||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| 3(a) |
|
|
|
|
|
|
|
|
| |
Non-interest bearing |
|
|
|
|
|
| 2,618,690 |
|
|
| 2,704,758 |
|
Interest bearing |
|
|
|
|
|
| 7,452,376 |
|
|
| 7,153,180 |
|
Restricted funds |
|
|
|
|
|
| 1,512,205 |
|
|
| 1,270,937 |
|
|
|
|
|
|
|
| 11,583,271 |
|
|
| 11,128,875 |
|
Inter-bank funds |
| 3(e) |
|
|
| 150,005 |
|
|
| 85,006 |
| |
Financial investments |
|
| 4 |
|
|
| 18,634,933 |
|
|
| 19,072,718 |
|
Loans, net: |
|
| 5 |
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
|
|
|
|
| 38,556,585 |
|
|
| 38,531,632 |
|
Impairment allowance for loans |
|
|
|
|
|
| (1,494,533 | ) |
|
| (1,394,779 | ) |
|
|
|
|
|
|
| 37,062,052 |
|
|
| 37,136,853 |
|
Investment property |
|
| 6 |
|
|
| 985,362 |
|
|
| 972,096 |
|
Property, furniture and equipment, net |
|
|
|
|
|
| 935,592 |
|
|
| 950,943 |
|
Due from customers on acceptances |
|
|
|
|
|
| 32,068 |
|
|
| 139,685 |
|
Intangibles and goodwill, net |
|
|
|
|
|
| 1,011,226 |
|
|
| 979,262 |
|
Other accounts receivable and other assets, net |
|
| 7 |
|
|
| 1,331,934 |
|
|
| 1,051,872 |
|
Deferred Income Tax asset, net |
|
|
|
|
|
| 85,130 |
|
|
| 44,983 |
|
Total assets |
|
|
|
|
|
| 71,811,573 |
|
|
| 71,562,293 |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 8 |
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
|
|
|
|
| 5,652,991 |
|
|
| 5,644,238 |
|
Interest bearing |
|
|
|
|
|
| 31,915,904 |
|
|
| 32,448,986 |
|
|
|
|
|
|
|
| 37,568,895 |
|
|
| 38,093,224 |
|
Inter-bank funds |
| 3(e) |
|
|
| 111,504 |
|
|
| 169,138 |
| |
Due to banks and correspondents |
|
| 9 |
|
|
| 5,334,597 |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| 10 |
|
|
| 6,973,377 |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
|
|
|
|
| 32,068 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| 11 |
|
|
| 11,064,345 |
|
|
| 11,338,810 |
|
Other accounts payable, provisions and other liabilities |
|
| 7 |
|
|
| 2,179,638 |
|
|
| 2,048,048 |
|
Deferred Income Tax liability, net |
|
|
|
|
|
| 882 |
|
|
| 13 |
|
Total liabilities |
|
|
|
|
|
| 63,265,306 |
|
|
| 62,658,845 |
|
Equity, net |
|
| 12 |
|
|
|
|
|
|
|
|
|
Equity attributable to IFS’s shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
| 1,038,017 |
|
|
| 1,038,017 |
|
Treasury stock |
|
|
|
|
|
| (293 | ) |
|
| (196 | ) |
Capital surplus |
|
|
|
|
|
| 532,771 |
|
|
| 530,456 |
|
Reserves |
|
|
|
|
|
| 4,700,000 |
|
|
| 4,700,000 |
|
Unrealized results, net |
|
|
|
|
|
| (19,867 | ) |
|
| 442,905 |
|
Retained earnings |
|
|
|
|
|
| 2,248,927 |
|
|
| 2,145,688 |
|
|
|
|
|
|
|
| 8,499,555 |
|
|
| 8,856,870 |
|
Non-controlling interest |
|
|
|
|
|
| 46,712 |
|
|
| 46,578 |
|
Total equity, net |
|
|
|
|
|
| 8,546,267 |
|
|
| 8,903,448 |
|
Total liabilities and equity, net |
|
|
|
|
|
| 71,811,573 |
|
|
| 71,562,293 |
|
The accompanying notes are an integral part of these consolidated financial statements.
3
Consolidated statement of income
For the three-month periods ended March 31, 2020 and 2019
|
| Note |
|
| 31.03.2020 |
|
| 31.03.2019 |
| |||
|
|
|
|
|
| S/(000) |
|
| S/(000) |
| ||
Interest and similar income |
|
| 14 |
|
|
| 1,248,210 |
|
|
| 1,166,740 |
|
Interest and similar expenses |
|
| 14 |
|
|
| (339,470 | ) |
|
| (342,493 | ) |
Net interest and similar income |
|
|
|
|
|
| 908,740 |
|
|
| 824,247 |
|
Impairment loss on loans, net of recoveries |
| 5(d) |
|
|
| (312,618 | ) |
|
| (186,414 | ) | |
(Loss) recovery due to impairment on financial investments |
| 4(c) |
|
|
| (40,522 | ) |
|
| 1,887 |
| |
Net interest and similar income after impairment loss |
|
|
|
|
|
| 555,600 |
|
|
| 639,720 |
|
Fee income from financial services, net |
|
| 15 |
|
|
| 220,308 |
|
|
| 222,998 |
|
Net gain on foreign exchange transactions |
|
|
|
|
|
| 131,339 |
|
|
| 41,306 |
|
Net gain on sale of financial investments |
|
|
|
|
|
| 28,288 |
|
|
| 27,445 |
|
Gain from derecognition of financial assets at amortized cost |
| 4(e) |
|
|
| — |
|
|
| 2,472 |
| |
Net (loss) gain on financial assets at fair value through profit or loss |
|
|
|
|
|
| (154,174 | ) |
|
| 37,061 |
|
Net gain on investment property |
| 6(b) |
|
|
| 21,943 |
|
|
| 11,874 |
| |
Other income |
|
| 16 |
|
|
| 11,917 |
|
|
| 18,730 |
|
|
|
|
|
|
|
| 259,621 |
|
|
| 361,886 |
|
Insurance premiums and claims |
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
| 17 |
|
|
| 124,439 |
|
|
| 97,926 |
|
Net claims and benefits incurred for life insurance contracts and others |
|
|
|
|
|
| (183,852 | ) |
|
| (165,292 | ) |
|
|
|
|
|
|
| (59,413 | ) |
|
| (67,366 | ) |
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
|
|
|
| (209,874 | ) |
|
| (195,375 | ) |
Administrative expenses |
|
|
|
|
|
| (193,886 | ) |
|
| (176,719 | ) |
Depreciation and amortization |
|
|
|
|
|
| (66,363 | ) |
|
| (62,904 | ) |
Other expenses |
|
| 16 |
|
|
| (41,083 | ) |
|
| (46,718 | ) |
|
|
|
|
|
|
| (511,206 | ) |
|
| (481,716 | ) |
Income before translation result and Income Tax |
|
|
|
|
|
| 244,602 |
|
|
| 452,524 |
|
Translation result |
|
|
|
|
|
| (23,856 | ) |
|
| 10,091 |
|
Income Tax |
| 13(e) |
|
|
| (75,841 | ) |
|
| (109,890 | ) | |
Net profit for the period |
|
|
|
|
|
| 144,905 |
|
|
| 352,725 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
IFS’s shareholders |
|
|
|
|
|
| 143,375 |
|
|
| 350,568 |
|
Non-controlling interest |
|
|
|
|
|
| 1,530 |
|
|
| 2,157 |
|
|
|
|
|
|
|
| 144,905 |
|
|
| 352,725 |
|
Earnings per share attributable to IFS’s shareholders basic and diluted (stated in Soles) |
|
| 18 |
|
|
| 1.242 |
|
|
| 3.167 |
|
Weighted average number of outstanding shares (in thousands) |
|
| 18 |
|
|
| 115,446 |
|
|
| 110,692 |
|
The accompanying notes are an integral part of these consolidated financial statements.
4
Consolidated statement of other comprehensive income
For the three-month periods ended March 31, 2020 and 2019
|
| 31.03.2020 |
|
| 31.03.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Net profit for the period |
|
| 144,905 |
|
|
| 352,725 |
|
Other comprehensive income that will not be reclassified to the consolidated statement of income in subsequent periods: |
|
|
|
|
|
|
|
|
(Losses) gains on equity instruments at fair value through other comprehensive income |
|
| (171,013 | ) |
|
| 68,991 |
|
Income Tax |
|
| — |
|
|
| (2 | ) |
Total unrealized gain that will not be reclassified to the consolidated statement of income |
|
| (171,013 | ) |
|
| 68,989 |
|
Other comprehensive income to be reclassified to the consolidated statement of income in subsequent periods: |
|
|
|
|
|
|
|
|
Net variation of debt instruments at fair value through other comprehensive income |
|
| (1,115,662 | ) |
|
| 387,600 |
|
Income Tax |
|
| 10,309 |
|
|
| (4,508 | ) |
|
|
| (1,105,353 | ) |
|
| 383,092 |
|
Insurance premiums reserve |
|
| 749,618 |
|
|
| (148,100 | ) |
Net variation of cash flow hedges |
|
| 39,853 |
|
|
| (9,139 | ) |
Income Tax |
|
| (5,762 | ) |
|
| 3,632 |
|
|
|
| 34,091 |
|
|
| (5,507 | ) |
Translation of foreign operations |
|
| 28,877 |
|
|
| (12,254 | ) |
Total unrealized (loss) gain to be reclassified to the consolidated statement of income in subsequent periods |
|
| (292,767 | ) |
|
| 217,231 |
|
Total other comprehensive income for the period, net of Income Tax |
|
| (318,875 | ) |
|
| 638,945 |
|
Attributable to: |
|
|
|
|
|
|
|
|
IFS’s shareholders |
|
| (319,397 | ) |
|
| 636,126 |
|
Non-controlling interest |
|
| 522 |
|
|
| 2,819 |
|
|
|
| (318,875 | ) |
|
| 638,945 |
|
The accompanying notes are an integral part of these consolidated financial statements.
5
Consolidated statement of changes in equity
For the three-month periods ended March 31, 2020 and 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to IFS’s shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized results, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
|
| Number of shares (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Instruments that will not be reclassified to the consolidated statement of income |
|
| Instruments that will be reclassified to the consolidated statement of income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
|
| Issued |
|
| In treasury |
|
| Capital stock |
|
| Treasury stock |
|
| Capital surplus |
|
| Reserves |
|
| Equity instruments at fair value |
|
| Debt instruments at fair value |
|
| Insurance premiums reserves |
|
| Cash flow hedges reserve |
|
| Foreign currency translation reserve |
|
| Retained earnings |
|
| Total |
|
| Non-controlling interest |
|
| Total equity, net |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||||||
Balances as of January 1, 2019 |
|
| 113,110 |
|
|
| (2,418 | ) |
|
| 963,446 |
|
|
| (208,178 | ) |
|
| 268,077 |
|
|
| 4,700,000 |
|
|
| 147,554 |
|
|
| (232,337 | ) |
|
| 75,575 |
|
|
| 27,911 |
|
|
| 102,983 |
|
|
| 1,203,043 |
|
|
| 7,048,074 |
|
|
| 40,402 |
|
|
| 7,088,476 |
|
Net profit for the period |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 350,568 |
|
|
| 350,568 |
|
|
| 2,157 |
|
|
| 352,725 |
|
Other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 68,876 |
|
|
| 382,240 |
|
|
| (147,857 | ) |
|
| (5,447 | ) |
|
| (12,254 | ) |
|
| — |
|
|
| 285,558 |
|
|
| 662 |
|
|
| 286,220 |
|
Total other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 68,876 |
|
|
| 382,240 |
|
|
| (147,857 | ) |
|
| (5,447 | ) |
|
| (12,254 | ) |
|
| 350,568 |
|
|
| 636,126 |
|
|
| 2,819 |
|
|
| 638,945 |
|
Dividends paid to non-controlling interest of Subsidiaries |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (3,228 | ) |
|
| (3,228 | ) |
Others |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,587 |
|
|
| 2,587 |
|
|
| (20 | ) |
|
| 2,567 |
|
Balance as of March 31, 2019 |
|
| 113,110 |
|
|
| (2,418 | ) |
|
| 963,446 |
|
|
| (208,178 | ) |
|
| 268,077 |
|
|
| 4,700,000 |
|
|
| 216,430 |
|
|
| 149,903 |
|
|
| (72,282 | ) |
|
| 22,464 |
|
|
| 90,729 |
|
|
| 1,556,198 |
|
|
| 7,686,787 |
|
|
| 39,973 |
|
|
| 7,726,760 |
|
Balances as of January 1, 2020 |
|
| 115,447 |
|
|
| (1 | ) |
|
| 1,038,017 |
|
|
| (196 | ) |
|
| 530,456 |
|
|
| 4,700,000 |
|
|
| 264,883 |
|
|
| 1,036,159 |
|
|
| (923,855 | ) |
|
| (22,758 | ) |
|
| 88,476 |
|
|
| 2,145,688 |
|
|
| 8,856,870 |
|
|
| 46,578 |
|
|
| 8,903,448 |
|
Net profit for the period |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 143,375 |
|
|
| 143,375 |
|
|
| 1,530 |
|
|
| 144,905 |
|
Other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (170,782 | ) |
|
| (1,103,250 | ) |
|
| 748,388 |
|
|
| 33,995 |
|
|
| 28,877 |
|
|
| — |
|
|
| (462,772 | ) |
|
| (1,008 | ) |
|
| (463,780 | ) |
Total other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (170,782 | ) |
|
| (1,103,250 | ) |
|
| 748,388 |
|
|
| 33,995 |
|
|
| 28,877 |
|
|
| 143,375 |
|
|
| (319,397 | ) |
|
| 522 |
|
|
| (318,875 | ) |
Initial Public Offering, Note 1(b) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,315 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (2,315 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Purchase of treasury stock, Note 12(b) |
|
| — |
|
|
| (2 | ) |
|
| — |
|
|
| (97 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (97 | ) |
|
| — |
|
|
| (97 | ) |
Others |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (37,821 | ) |
|
| (37,821 | ) |
|
| (388 | ) |
|
| (38,209 | ) |
Balance as of March 31, 2020 |
|
| 115,447 |
|
|
| (3 | ) |
|
| 1,038,017 |
|
|
| (293 | ) |
|
| 532,771 |
|
|
| 4,700,000 |
|
|
| 94,101 |
|
|
| (67,091 | ) |
|
| (175,467 | ) |
|
| 11,237 |
|
|
| 117,353 |
|
|
| 2,248,927 |
|
|
| 8,499,555 |
|
|
| 46,712 |
|
|
| 8,546,267 |
|
The accompanying notes are an integral part of these consolidated financial statements.
6
Consolidated statement of cash flows
For the three-month periods ended March 31, 2020 and 2019
|
| 31.03.2020 |
|
| 31.03.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net profit for the period |
|
| 144,905 |
|
|
| 352,725 |
|
Plus (minus) adjustments to net profit |
|
|
|
|
|
|
|
|
Impairment loss on loans, net of recoveries |
|
| 312,618 |
|
|
| 186,414 |
|
Loss (recovery) due to impairment of financial investments |
|
| 40,522 |
|
|
| (1,887 | ) |
Depreciation and amortization |
|
| 66,363 |
|
|
| 62,904 |
|
Provision for sundry risks |
|
| 2,382 |
|
|
| 3,190 |
|
Deferred Income Tax |
|
| (36,629 | ) |
|
| (5,579 | ) |
Net gain on sale of financial investments |
|
| (28,288 | ) |
|
| (27,445 | ) |
Gain from derecognition of financial assets at amortized cost |
|
| — |
|
|
| (2,472 | ) |
Net (loss) gain of financial assets at fair value through profit or loss |
|
| 154,174 |
|
|
| (37,061 | ) |
Net gain for valuation of investment property |
|
| (11,481 | ) |
|
| (1,322 | ) |
Translation result |
|
| 23,856 |
|
|
| (10,091 | ) |
Decrease in accrued interest receivable |
|
| 28,985 |
|
|
| 38,990 |
|
Increase in accrued interest payable |
|
| 22,432 |
|
|
| 35,194 |
|
Net changes in assets and liabilities |
|
|
|
|
|
|
|
|
Net increase in loans |
|
| (227,157 | ) |
|
| (826,104 | ) |
Increase in other accounts receivable and other assets |
|
| (153,285 | ) |
|
| (123,960 | ) |
Net (increase) decrease in restricted funds |
|
| (238,444 | ) |
|
| 442,710 |
|
(Decrease) increase in deposits and obligations |
|
| (538,802 | ) |
|
| 1,077,096 |
|
Increase (decrease) in due to banks and correspondents |
|
| 1,360,326 |
|
|
| (570,671 | ) |
Increase in other accounts payable, provisions and other liabilities |
|
| 373,544 |
|
|
| 259,055 |
|
Income Tax paid |
|
| (117,595 | ) |
|
| (118,604 | ) |
Decrease of investments at fair value through profit or loss |
|
| 36,187 |
|
|
| 35,061 |
|
Net cash provided by operating activities |
|
| 1,214,613 |
|
|
| 768,143 |
|
The accompanying notes are an integral part of these consolidated financial statements.
7
Consolidated statements of cash flows (continued)
|
| 31.03.2020 |
|
| 31.03.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Net (purchase) sale of financial investments |
|
| (1,066,350 | ) |
|
| 216,678 |
|
Purchase of property, furniture and equipment |
|
| (19,341 | ) |
|
| (14,435 | ) |
Purchase of intangible assets |
|
| (67,065 | ) |
|
| (20,992 | ) |
Purchase of investment property |
|
| (1,785 | ) |
|
| (1,735 | ) |
Net cash (used in) provided by investing activities |
|
| (1,154,541 | ) |
|
| 179,516 |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Net increase of bonds, notes and other obligations |
|
| 312,000 |
|
|
| 244,157 |
|
Net (increase) decrease in receivable inter-bank funds |
|
| (64,999 | ) |
|
| 425,020 |
|
Net (decrease) increase in payable inter-bank funds |
|
| (57,634 | ) |
|
| 106,524 |
|
Purchase of treasury stock, net |
|
| (97 | ) |
|
| — |
|
Dividend payments to non-controlling interest |
|
| — |
|
|
| (3,228 | ) |
Lease payments |
|
| (24,251 | ) |
|
| (26,854 | ) |
Net cash provided by financing activities |
|
| 165,019 |
|
|
| 745,619 |
|
Net increase in cash and cash equivalents |
|
| 225,091 |
|
|
| 1,693,278 |
|
Translation (loss) gain on cash and cash equivalents |
|
| (10,586 | ) |
|
| 23,947 |
|
Cash and cash equivalents at the beginning of the period |
|
| 9,851,729 |
|
|
| 7,087,062 |
|
Cash and cash equivalents at the end of the period |
|
| 10,066,234 |
|
|
| 8,804,287 |
|
The accompanying notes are an integral part of these consolidated financial statements.
8
Notes to the consolidated financial statements
As of March 31, 2020 (unaudited) and December 31, 2019 (audited)
1. | Business activity and other relevant events |
| (a) | Business activity - |
Intercorp Financial Services Inc. and Subsidiaries (henceforth "IFS", “the Company” or “the Group”), is a limited liability holding company incorporated in the Republic of Panama on September 19, 2006, and is a Subsidiary of Intercorp Perú Ltd. (henceforth “Intercorp Perú”), a holding Company incorporated in 1997 in the Commonwealth of the Bahamas. As of March 31, 2020, Intercorp Perú holds directly and indirectly 70.63 percent of the issuead capital stock of IFS, equivalent to 70.62 percent of the outstanding capital stock of IFS (70.62 percent of the issuead and outstanding capital stock of IFS, as of December 31, 2019).
IFS’s legal domicile is located at Av. Carlos Villarán 140 Urb. Santa Catalina, La Victoria, Lima, Peru.
As of March 31, 2020 and December 31, 2019, IFS holds 99.30 percent of the capital stock of Banco Internacional del Perú S.A.A. – Interbank (henceforth “Interbank”), 99.84 percent of the capital stock of Interseguro Compañía de Seguros S.A. (henceforth “Interseguro”) and 100 percent of the capital stock of Inteligo Group Corp. (henceforth “Inteligo”).
The operations of Interbank and Interseguro are concentrated in Peru, while the operations of Inteligo and its Subsidiaries (Interfondos S.A. Sociedad Administradora de Fondos, Inteligo Sociedad Agente de Bolsa S.A. and Inteligo Bank Ltd.) are mainly concentrated in Peru and Panama. Hipotecaria Sura was extinguished in October 2019.
The interim condensed consolidated financial statements as of March 31, 2020, have been approved by Board of Directors held on May 12, 2020. The audited consolidated financial statement of IFS and Subsidiaries as of December 31, 2019, issued on March 13, 2020, were approved by the General Shareholders’ Meeting held on April 7, 2020.
| (b) | COVID-19 global pandemic - |
| In relation to the recent COVID-19 coronavirus pandemic, since early March 2020 IFS has put into effect a business continuity program, with actions involving different levels of the organization. Supporting these actions, the Peruvian Government and several authorities at the economic front – such as the BCRP, the SBS, the MEF and the Securities Market regulatory body – have all reacted promptly to tackle the crisis. |
IFS is closely monitoring the situation in all its different business lines, and management is focused on guaranteeing the operation and strengthening the Subsidiaries’ liquidity and solvency position, while adopting a series of measures to help clients affected by this crisis. With respect to liquidity, Interbank has remained active in the Central Bank’s day-to-day operations and has drawn lines of credit available from correspondent banks abroad, while its retail deposit base has continued to grow. Moreover, at the Shareholders' Meeting held on April 3, 2020, Interbank approved a reduction in its earnings’ payout ratio, from the previous 45 percent to 25 percent compared to the previous year, in order to strengthen its total capital and core capital ratios to face the volatile environment. First quarter of 2020 earnings have also been agreed to be capitalized at the bank level.
People and clients’ well-being are top priorities for IFS. On one hand, employees are subject to specific protocols – including social distancing, hygiene habits, health surveillance, home office implementation and strong communications. On the other hand, clients can request the rescheduling of their debts and may postpone their payment obligations under various arrangements. Non-contact service channels (telephone banking and internet) play an important role in enabling the quick implementation of these arrangements.
The impact of the COVID-19 outbreak on IFS’s results cannot be reasonably estimated at this time given the magnitude, duration and global reach of the situation.
9
On July 3, 2019, the Board of IFS approved the filing with the Securities and Exchange Commission of the United States of America (henceforth “SEC”), of a Registration Statement under Form F-1 of the Securities Exchange Act of 1933 of the United States of America, in relation with a proposal of an Initial Public Offering (henceforth “Offering”) of IFS’s common shares.
On July 18, 2019, IFS announced the placement of the Offering for approximately 9,000,000 common shares at a price of US$46.00 per common share. The sale was performed by (i) IFS, (ii) Interbank, (iii) Intercorp Perú; and (iv) a non-related shareholder. Additionally, IFS granted the Offering placers a 30-day call option for up to 1,350,000 new common shares, as an additional initial issuance.
As result of said Offering, IFS sold 2,418,754 common shares held as treasury stock (including shares sold by Interbank), as well as approximately 1,150,000 new common shares to be issued. Intercorp Perú sold 2,531,246 shares, and the non-related shareholder sold 3,000,000 shares. Additionally, the placers exercised the call option regarding 1,186,841 new common shares.
In this sense, IFS and Subsidiaries combined, sold, 4,755,595 shares at US$46.00 per share. The sale value amounted to approximately US$218,757,000 (before issuance expenses).
The total impact of the Offering on the Company’s net equity, after discounting the issuance expenses, amounted to S/684,125,000 (approximately US$208,384,000), mainly explained by:
| (i) | Issuance of 2,336,841 shares, for an amount of S/336,950,000, out of which S/74,571,000 correspond to capital stock and S/262,379,000 to capital surplus (net of issuance expenses for S/15,957,000), see Note 12(a). |
| (ii) | Sale of 2,418,754 share held as treasury stock, including shares sold by Interbank, for a total amount of S/347,175,000, which were recorded in captions “Treasury stock” and “Retained earnings”, see Note 12(b). |
| (d) | Subsidiaries Activities – |
IFS’s Subsidiaries are the following:
(a)Banco Internacional del Perú S.A.A. - Interbank and Subsidiaries -
Interbank is incorporated in Peru and is authorized by the Superintendence of Banking, Insurance and Private Pension Funds (henceforth “SBS”, by its Spanish acronym) to operate as a universal bank in accordance with Peruvian legislation. The Bank's operations are governed by the General Act of the Banking and Insurance System and Organic Act of the SBS – Act No. 26702 (henceforth “the Banking and Insurance Act”), that establishes the requirements, rights, obligations, restrictions and other operating conditions that financial and insurance entities must comply with in Peru.
As of March 31, 2020 and December 31, 2019, Interbank had 253 and 255 offices, respectively, and a branch established in the Republic of Panama. Regarding said branch, on April 23, 2019, Interbank’s Board approved its voluntary closing. As of the date of this report, there is no specific date for the completion of said process.
10
Additionally, it holds approximately 100 percent of the shares of the following Subsidiaries:
Entity | Activity |
|
|
|
|
Internacional de Títulos Sociedad Titulizadora S.A. - Intertítulos S.T. | Manages securitization funds. |
Compañía de Servicios Conexos Expressnet S.A.C. | Services related to credit card transactions or products related to the brand “American Express”. |
|
|
Inversiones Huancavelica S.A. | Real estate activities. As of December 31, 2019, the entity was absorbed by Banco Internacional del Perú S.A.A. through a process of merging by absorption, which was authorized by the SBS in September 2019. |
|
|
Contacto Servicios Integrales de Créditos y Cobranzas S.A. | Collection services. As of December 31, 2019, the entity was absorbed by Banco Internacional del Perú S.A.A. through a process of merging by absorption, which was authorized by the SBS in September 2019. |
|
|
(b)Interseguro Compañía de Seguros S.A. and Subsidiaries -
Interseguro is incorporated in Peru and its operations are governed by the Banking and Insurance Act. It is authorized by the SBS to issue life and general risk insurance contracts. As of March 31, 2020 and December 31, 2019, Interseguro participates in:
Patrimonio Fideicometido D.S.093-2002-EF, Interproperties Perú -
Interseguro holds participations in Patrimonio Fideicometido D.S.093-2002-EF, Interproperties Perú (henceforth “Patrimonio Fideicometido – Interproperties Perú”), a structured entity, incorporated in April 2008, in which several investors (related parties to the Group) contributed investment properties. Each investor or investors have ownership of and specific control over the contributed investment property. The fair values of the properties contributed by Interseguro, which were included in this structured entity as of March 31, 2020 and December 31, 2019, amounted to S/115,627,000 and S/114,058,000, respectively. For accounting purposes and under IFRS 10 “Consolidated Financial Statements” the assets included in said structure are considered “silos”, because they are ring-fenced parts of the wider structured entity (the Patrimonio Fideicometido - Interproperties Perú). IFS has ownership and decision-making power over these properties and IFS has the exposure or rights to their returns; therefore, IFS consolidates the silos containing the investment properties that it controls.
In June and September 2019, Interseguro sold the entirety of its 15 percent participation in the land lot located in Miraflores (Lima) called “Cuartel San Martín” to Urbi Propiedades S.A.C., a related entity, for an amount of S/63,132,000. Through the sale, Interseguro transferred its ownership over said property.
Additionally, in November 2019, Interseguro and Interproperties Perú transferred an investment property (Lilingstone lot, located in San Isidro) to Interseguro, and annulled the corresponding certificates of participation. The amount of the transferred property amounted to S/253,557,000.
11
(c)Inteligo Group Corp. and Subsidiaries -
Inteligo is an entity incorporated in the Republic of Panama. As of March 31, 2020 and December 31, 2019, it holds 100 percent of the shares of the following Subsidiaries:
(d)Negocios e Inmuebles S.A. and Holding Retail Perú S.A. -
These entities were acquired by IFS as part of the purchase of Seguros Sura and Hipotecaria Sura, in 2017. As of March 31, 2020 and December 31, 2019, as a result of the merger between Interseguro and Seguros Sura, both companies hold 8.50 percent of Interseguro’s capital stock.
(e)San Borja Global Opportunities S.A.C. -
Its corporate purpose is the marketing of products and services through Internet, telephony or related.
(f)Hipotecaria Sura Empresa Administradora Hipotecaria S.A. -
As of December 31, 2019, this company has been extinguished. It was incorporated in Peru and regulated by the SBS. Its main activity was the granting of mortgage loans. It disbursed its last loans in 2015.
12
2.1Basis of presentation and use of estimates –
The interim condensed consolidated financial statements as of March 31, 2020 and December 31, 2019, have been prepared in accordance with IAS 34 “Interim Financial Reporting”.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group’s consolidated audited financial statements as of December 31, 2019 and 2018 (henceforth “Annual Consolidated Financial Statements”).
The accompanying interim condensed consolidated financial statements have been prepared on a historical cost basis, except for investment property, derivative financial instruments, financial investments at fair value through profit or loss and through other comprehensive income, which have been measured at fair value. The interim condensed consolidated financial statements are presented in Soles, which is the functional currency of the Group, and all values are rounded to the nearest thousand (S/(000)), except when otherwise indicated.
The preparation of the interim condensed consolidated financial statements, in conformity with the International Financial Reporting Standards (henceforth “IFRS”) as issued by the International Accounting Standards Board (IASB), requires Management to make estimations and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of significant events in the notes to the interim condensed consolidated financial statements.
In that sense, the estimates and criteria are continually assessed and are based on historical experience, as well as other factors, including expectations of future events that are believed to be reasonable under the current circumstances. Existing circumstances and assumptions about future developments, however, may change due to markets’ behavior or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. Actual results could differ from those estimates. The most significant estimates comprised in the accompanying interim condensed consolidated financial statements are related to the calculation of the impairment of the portfolio of loan and financial investments, the measurement of the fair value of the financial investments and investment property, the assessment of the impairment of goodwill, the liabilities for insurance contracts and measurement of the fair value of derivative financial instruments; also, there are other estimates such as the estimated useful life of intangible assets, property, furniture and equipment, and the estimation of deferred Income Tax.
2.2Basis of consolidation –
The interim condensed consolidated financial statements of IFS comprise the financial statements of Intercorp Financial Services Inc. and Subsidiaries. The method adopted by IFS to consolidate its Subsidiaries is described in Note 3.3 to the Annual Consolidated Financial Statements. There were no changes in the composition of IFS in the reported period.
13
| (a) | The detail of cash and due from banks is as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Cash and clearing (b) |
|
| 1,943,222 |
|
|
| 1,877,843 |
|
Deposits in the Central Reserve Bank of Peru – BCRP (b) |
|
| 6,098,673 |
|
|
| 5,861,570 |
|
Deposits in banks (c) |
|
| 2,024,339 |
|
|
| 2,112,316 |
|
Accrued interest |
|
| 4,832 |
|
|
| 6,209 |
|
|
|
| 10,071,066 |
|
|
| 9,857,938 |
|
Restricted funds (d) |
|
| 1,512,205 |
|
|
| 1,270,937 |
|
Total |
|
| 11,583,271 |
|
|
| 11,128,875 |
|
| (b) | In accordance with rules in force, Interbank is required to maintain a legal reserve in order to honor its obligations with the public. This reserve is comprised of funds kept in Interbank and in the BCRP. |
The legal reserve funds maintained in the BCRP are non-interest bearing, except for the part that exceeds the minimum reserve required that accrued interest at an annual rate established by the BCRP. As of March 31, 2020, the excess in foreign currency accrued interest in US Dollars at an annual average rate of 0.43 percent (1.25 percent as of December 31, 2019). During 2020 and 2019, Interbank did not maintain excess reserves in national currency.
In Management’s opinion, Interbank has complied with the requirements established by the rules in force related to the computation of the legal reserve.
| (c) | Deposits in domestic banks and abroad are mainly in Soles and US Dollars, they are freely available and accrue interest at market rates. |
| (d) | The Group maintains restricted funds related to: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Repurchase agreements with BCRP (*) |
|
| 1,411,183 |
|
|
| 1,208,506 |
|
Derivative financial instruments |
|
| 96,064 |
|
|
| 57,816 |
|
Others |
|
| 4,958 |
|
|
| 4,615 |
|
Total |
|
| 1,512,205 |
|
|
| 1,270,937 |
|
| (*) | As of March 31, 2020, correspond to deposits maintained in the BCRP which guarantee agreements amounting to S/1,392,700,000 (guaranteed agreements amounting to S/1,205,200,000 as of December 31, 2019); see Note 9(b). |
Cash and cash equivalents presented in the consolidated statement of cash flows do not include the restricted funds and accrued interest.
| (e) | Inter-bank funds |
| Corresponds to loans made among financial institutions with maturity, in general, being less than 30 days. As of March 31, 2020, Inter-bank funds assets accrue interest at an annual rate of 1.25 percent in national currency and Inter-bank funds liabilities accrue interest at an annual rate of 1.14 percent in national currency (Inter-bank funds assets accrue interest at an annual rate of 2.26 percent in national currency and Inter-bank funds liabilities accrue interest at an annual rate of 2.25 percent in national currency and 1.75 percent in foreign currency, as of December 31, 2019) and do not have specific guarantees. |
14
| (a) | This caption is made up as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Financial investments |
|
|
|
|
|
|
|
|
Debt instruments measured at fair value through other comprehensive income (b) |
|
| 13,803,208 |
|
|
| 14,010,029 |
|
Investments at amortized cost (e) |
|
| 2,260,631 |
|
|
| 2,160,775 |
|
Investments at fair value through profit or loss (d) |
|
| 1,393,938 |
|
|
| 1,551,537 |
|
Equity instruments measured at fair value through other comprehensive income (f) |
|
| 998,702 |
|
|
| 1,125,722 |
|
Total financial investments |
|
| 18,456,479 |
|
|
| 18,848,063 |
|
Accrued income |
|
|
|
|
|
|
|
|
Debt instruments measured at fair value through other comprehensive income (b) |
|
| 163,196 |
|
|
| 178,444 |
|
Investments at amortized cost (e) |
|
| 15,258 |
|
|
| 46,211 |
|
Total |
|
| 18,634,933 |
|
|
| 19,072,718 |
|
15
| (b) | Following is the detail of debt instruments measured at fair value through other comprehensive income: |
|
|
|
|
|
| Unrealized gross amount |
|
|
|
|
|
|
|
| Annual effective interest rates |
| ||||||||||||||||||
|
| Amortized |
|
|
|
|
|
|
|
|
|
| Estimated |
|
|
|
| S/ |
|
| US$ |
| ||||||||||||
|
| cost |
|
| Gains |
|
| Losses (c) |
|
| fair value |
|
| Maturity |
| Min |
|
| Max |
|
| Min |
|
| Max |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
|
|
| % |
|
| % |
|
| % |
|
| % |
| ||||||||
As of March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, leasing and subordinated bonds (*) |
|
| 7,974,436 |
|
|
| 279,494 |
|
|
| (554,230 | ) |
|
| 7,699,700 |
|
| Apr-20 / Jan-114 |
|
| 0.87 |
|
|
| 25.80 |
|
|
| 3.40 |
|
|
| 31.73 |
|
Peruvian Sovereign Bonds |
|
| 3,986,231 |
|
|
| 143,979 |
|
|
| (43,451 | ) |
|
| 4,086,759 |
|
| Aug-24 / Feb-55 |
|
| 2.04 |
|
|
| 5.88 |
|
|
| — |
|
|
| — |
|
Negotiable Certificates of Deposit issued by BCRP |
|
| 1,128,781 |
|
|
| 4,025 |
|
|
| (1,525 | ) |
|
| 1,131,281 |
|
| Apr-20 / Mar-23 |
|
| 2.14 |
|
|
| 3.04 |
|
|
| — |
|
|
| — |
|
Bonds guaranteed by the Peruvian Government |
|
| 628,052 |
|
|
| 28,979 |
|
|
| (1,688 | ) |
|
| 655,343 |
|
| Oct-24 / Jul -34 |
|
| 2.49 |
|
|
| 4.46 |
|
|
| 2.89 |
|
|
| 5.05 |
|
Global Bonds of the Republic of Peru |
|
| 79,672 |
|
|
| 2,040 |
|
|
| — |
|
|
| 81,712 |
|
| Jul-25 |
|
| — |
|
|
| — |
|
|
| 2.06 |
|
|
| 2.06 |
|
Global Bonds of the Republic of Colombia |
|
| 153,102 |
|
|
| — |
|
|
| (4,689 | ) |
|
| 148,413 |
|
| Jul-21 / Feb-24 |
|
| — |
|
|
| — |
|
|
| 3.62 |
|
|
| 3.87 |
|
Total |
|
| 13,950,274 |
|
|
| 458,517 |
|
|
| (605,583 | ) |
|
| 13,803,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 163,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 13,966,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gross amount |
|
|
|
|
|
|
|
| Annual effective interest rates |
| ||||||||||||||||||
|
| Amortized |
|
|
|
|
|
|
|
|
|
| Estimated |
|
|
|
| S/ |
|
| US$ |
| ||||||||||||
|
| cost |
|
| Gains |
|
| Losses (c) |
|
| fair value |
|
| Maturity |
| Min |
|
| Max |
|
| Min |
|
| Max |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
|
|
| % |
|
| % |
|
| % |
|
| % |
| ||||||||
As of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, leasing and subordinated bonds (*) |
|
| 7,562,985 |
|
|
| 648,601 |
|
|
| (12,300 | ) |
|
| 8,199,286 |
|
| Jan-20 / Jan-114 |
|
| 0.71 |
|
|
| 21.76 |
|
|
| 2.26 |
|
|
| 10.73 |
|
Peruvian Sovereign Bonds |
|
| 3,213,581 |
|
|
| 330,856 |
|
|
| (242 | ) |
|
| 3,544,195 |
|
| Aug-24 / Feb-55 |
|
| 1.59 |
|
|
| 5.31 |
|
|
| — |
|
|
| — |
|
Negotiable Certificates of Deposit issued by BCRP |
|
| 1,481,962 |
|
|
| 1,533 |
|
|
| (2 | ) |
|
| 1,483,493 |
|
| Jan-20 / Jun-21 |
|
| 2.15 |
|
|
| 3.04 |
|
|
| — |
|
|
| — |
|
Bonds guaranteed by the Peruvian Government |
|
| 626,087 |
|
|
| 42,153 |
|
|
| (167 | ) |
|
| 668,073 |
|
| Oct-24 / Jul -34 |
|
| 2.24 |
|
|
| 4.14 |
|
|
| 3.61 |
|
|
| 5.14 |
|
Global Bonds of the Republic of Colombia |
|
| 114,431 |
|
|
| 551 |
|
|
| — |
|
|
| 114,982 |
|
| Jul-21 / Mar-23 |
|
| — |
|
|
| — |
|
|
| 2.24 |
|
|
| 2.46 |
|
Total |
|
| 12,999,046 |
|
|
| 1,023,694 |
|
|
| (12,711 | ) |
|
| 14,010,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 178,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 14,188,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) | As of March 31, 2020 and December 31, 2019, Inteligo holds corporate bonds from different entities for approximately S/246,511,000 and S/440,409,000, respectively, which guarantee loans with Credit Suisse First Boston and Bank J. Safra Sarasin; see Note 9(a). |
| (c) | The Group has determined that the unrealized losses on debt instruments as of March 31, 2020 and December 31, 2019, not related to credit risk, are of temporary nature. |
16
As of March 31, 2020 and December 31, 2019, the detail of the unrealized losses of the debt instruments classified as at fair value through other comprehensive income is as follows:
|
| 31.03.2020 |
|
| 31.12.2019 |
|
|
|
|
| ||||||||||||||||||
Issuer |
| Amortized Cost |
|
| Unrealized gross gain |
|
| Unrealized gross loss |
|
| Amortized Cost |
|
| Unrealized gross gain |
|
| Unrealized gross loss |
|
| Maturity as of March 31, 2020 |
| Risk rating as of March 31, 2020 (***) | ||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
|
|
|
| ||||||
Peruvian Sovereign Bonds |
|
| 3,986,231 |
|
|
| 143,979 |
|
|
| (43,451 | ) |
|
| 3,213,581 |
|
|
| 330,856 |
|
|
| (242 | ) |
| 2024-2055 |
| A- (*) |
BBVA Banco Continental |
|
| 312,077 |
|
|
| 9,099 |
|
|
| (12,498 | ) |
|
| 302,668 |
|
|
| 14,611 |
|
|
| (3,301 | ) |
| 2020-2033 |
| BBB+ (*) |
Corporación Financiera de Desarrollo S.A. |
|
| 297,595 |
|
|
| 13,012 |
|
|
| (7,541 | ) |
|
| 374,631 |
|
|
| 30,197 |
|
|
| (1,438 | ) |
| 2029-2046 |
| AA (**) |
Rutas de Lima |
|
| 293,538 |
|
|
| — |
|
|
| (108,140 | ) |
|
| 285,047 |
|
|
| 46,465 |
|
|
| — |
|
| 2036-2039 |
| Less than B- (*) |
Suzano Austria GMBH |
|
| 236,396 |
|
|
| — |
|
|
| (29,700 | ) |
|
| 228,102 |
|
|
| 16,892 |
|
|
| — |
|
| 2047 |
| BBB- (*) |
G y M Ferroviarias |
|
| 226,172 |
|
|
| — |
|
|
| (50,920 | ) |
|
| 226,306 |
|
|
| 36,832 |
|
|
| — |
|
| 2039 |
| AA+ (**) |
Fermaca Enterprises S.R.L. |
|
| 223,333 |
|
|
| — |
|
|
| (10,382 | ) |
|
| 218,733 |
|
|
| 6,906 |
|
|
| — |
|
| 2038 |
| BBB (*) |
GTL Trade Finance INC |
|
| 204,763 |
|
|
| — |
|
|
| (15,680 | ) |
|
| 163,233 |
|
|
| 18,965 |
|
|
| — |
|
| 2044 |
| BBB- (*) |
Bienes Raíces Uno Trust |
|
| 186,521 |
|
|
| — |
|
|
| (25,825 | ) |
|
| 180,067 |
|
|
| 11,417 |
|
|
| — |
|
| 2044 |
| BBB (*) |
Mexichem SAB de CV |
|
| 181,435 |
|
|
| — |
|
|
| (24,599 | ) |
|
| 175,102 |
|
|
| 9,874 |
|
|
| — |
|
| 2042-2044 |
| BBB- (*) |
Línea Amarilla S.A.C. |
|
| 174,470 |
|
|
| — |
|
|
| (12,980 | ) |
|
| 174,049 |
|
|
| 14,284 |
|
|
| — |
|
| 2037 |
| AA (**) |
Cometa Energía |
|
| 171,427 |
|
|
| — |
|
|
| (10,890 | ) |
|
| 165,275 |
|
|
| 16,009 |
|
|
| — |
|
| 2035 |
| BBB- (*) |
PA Pacifico Trust |
|
| 171,178 |
|
|
| — |
|
|
| (19,608 | ) |
|
| 161,799 |
|
|
| 4,144 |
|
|
| — |
|
| 2035 |
| BBB- (*) |
Celulosa Arauco y Constitución S.A. |
|
| 166,577 |
|
|
| — |
|
|
| (35,588 | ) |
|
| 160,864 |
|
|
| 2,783 |
|
|
| — |
|
| 2047 |
| BBB- (*) |
Global Bonds of the Republic of Colombia |
|
| 153,102 |
|
|
| — |
|
|
| (4,689 | ) |
|
| 114,431 |
|
|
| 551 |
|
|
| — |
|
| 2021-2024 |
| BBB- (*) |
Votorantim |
|
| 142,038 |
|
|
| — |
|
|
| (25,034 | ) |
|
| 98,907 |
|
|
| 2,330 |
|
|
| — |
|
| 2041 |
| BBB- (*) |
Orazul Energy Egenor SCA |
|
| 117,562 |
|
|
| — |
|
|
| (13,655 | ) |
|
| 22,069 |
|
|
| 68 |
|
|
| — |
|
| 2027 |
| BB (*) |
Cementos Pacasmayo |
|
| 117,450 |
|
|
| — |
|
|
| (5,690 | ) |
|
| 117,337 |
|
|
| 11,643 |
|
|
| (13 | ) |
| 2023-2034 |
| AAA (**) |
Luz del Sur |
|
| 103,470 |
|
|
| 2,517 |
|
|
| (4,850 | ) |
|
| 164,603 |
|
|
| 8,464 |
|
|
| (2,732 | ) |
| 2029-2034 |
| AAA (**) |
Instruments with individual losses minor than S/4 million |
|
| 1,964,857 |
|
|
| 12,296 |
|
|
| (143,863 | ) |
|
| 1,177,293 |
|
|
| 47,683 |
|
|
| (4,985 | ) |
| - |
| - |
Total |
|
| 9,430,192 |
|
|
| 180,903 |
|
|
| (605,583 | ) |
|
| 7,724,097 |
|
|
| 630,974 |
|
|
| (12,711 | ) |
|
|
|
|
(*) | Instrument rated abroad. |
(**) | Instrument rated in Peru. |
(***) | For those issuers with different instruments, the classification presented corresponds to the instrument with the largest unrealized loss. |
17
On the other hand, the movement of the allowance for expected credit losses for debt instruments measured at fair value through other comprehensive income is presented below:
|
| 31.03.2020 |
|
| 31.12.2019 |
|
| 31.03.2019 |
| |||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||
Expected credit loss at the beginning of the period |
|
| 34,743 |
|
|
| 28,050 |
|
|
| 28,050 |
|
Impairment of financial investments |
|
|
|
|
|
|
|
|
|
|
|
|
New assets originated or purchased |
|
| 287 |
|
|
| 1,588 |
|
|
| 588 |
|
Assets derecognized or matured (excluding write-offs) |
|
| (85 | ) |
|
| (1,290 | ) |
|
| (177 | ) |
Others (*) |
|
| 40,320 |
|
|
| 6,492 |
|
|
| (2,298 | ) |
Loss (recovery) to impairment on financial investments |
|
| 40,522 |
|
|
| 6,790 |
|
|
| (1,887 | ) |
Foreign exchange effect |
|
| 3,955 |
|
|
| (97 | ) |
|
| (28 | ) |
Expected credit loss at the end of the period |
|
| 79,220 |
|
|
| 34,743 |
|
|
| 26,135 |
|
| (*) | Corresponds mainly to the variation in the inputs used for calculating the expected credit losses different to changes in the stage during the year. |
As a result of the assessment of the impairment of debt instruments at fair value through other comprehensive income, the Group recorded expenses by S/40,522,000 during the year 2020 and a reversal of the impairment of S/1,887,000 during the year 2019, which were presented in the caption "(Loss) recovery to impairment of financial investments" in the consolidated statement of income.
| (d) | The composition of financial instruments at fair value through profit or loss is as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Equity instruments |
|
|
|
|
|
|
|
|
Local and foreign mutual funds and investment funds participations |
|
| 904,759 |
|
|
| 1,083,079 |
|
Royalty Pharma |
|
| 127,903 |
|
|
| 117,682 |
|
BioPharma Credit PLC |
|
| 119,447 |
|
|
| 132,054 |
|
Others |
|
| 126,523 |
|
|
| 153,468 |
|
Debt instruments |
|
|
|
|
|
|
|
|
Corporate, leasing and subordinated bonds |
|
| 115,306 |
|
|
| 65,254 |
|
Total |
|
| 1,393,938 |
|
|
| 1,551,537 |
|
| (e) | As of March 31, 2020 and December 31, 2019, investments at amortized cost are entirely comprised of Sovereign Bonds of the Republic of Peru issued in Soles, for an amount of S/2,275,889,000 and S/2,206,986,000, respectively, including accrued interest. |
As of March 31, 2020 and December 31, 2019, these investments have maturity dates that range from September 2023 to August 2037, have accrued interests at effective annual rates ranging from 4.29 percent and 6.26 percent, and estimated fair value amounting to approximately S/2,375,348,000 and S/2,328,303,000, as of March 31, 2020 and December 31, 2019, respectively.
During the year 2019, the Government of the Republic of Peru performed public offerings to buyback certain sovereign bonds, with the purpose of renewing its debt and funding its fiscal deficit. Considering the purpose of this offering, following such offering, there would be no outstanding sovereign bonds of the repurchased issuances. In the event that some bonds remained outstanding, they would become illiquid on the market. In that sense, Interbank took part of these public offerings and sold to the Government of the Republic of Peru sovereign bonds classified as investments at amortized cost for approximately S/187,813,000, generating a gain amounting to S/2,472,000, which was recorded within the caption “Gain from derecognition of financial investments at amortized cost” of the consolidated statement of income. Notwithstanding the aforementioned, with the purpose of maintaining its asset management strategy, the Bank purchased simultaneously other sovereign bonds of the Republic of Peru for approximately S/187,744,000, and classified them as investments at amortized cost. In Management’s opinion and pursuant to IFRS 9, said transaction is congruent with the Group’s business model because although said sales were significant, they were infrequent and were
18
performed with the sole purpose of facilitating the debt renewal and the funding of the fiscal deficit of the Republic of Peru.
As of March 31, 2020 and December 31, 2019, Interbank keeps loans with the BCRP that are guaranteed with these sovereign bonds of the Republic of Peru, classified as restricted, for approximately S/1,317,325,000 and S/762,347,000, respectively; see Note 9(a).
(f)The composition of equity instruments measured at fair value through other comprehensive income is presented below:
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
BioPharma Credit PLC |
|
| 304,363 |
|
|
| 336,338 |
|
InRetail Perú Corp |
|
| 256,583 |
|
|
| 285,962 |
|
Ishares |
|
| 83,732 |
|
|
| 140,198 |
|
Luz del Sur S.A.A. |
|
| 78,587 |
|
|
| 87,983 |
|
Engie-Energía Perú S.A. |
|
| 76,810 |
|
|
| 90,670 |
|
Credicorp |
|
| 58,065 |
|
|
| 18,030 |
|
Ferreycorp S.A.A. |
|
| 53,431 |
|
|
| 83,013 |
|
Cementos Pacasmayo S.A.A. |
|
| 30,794 |
|
|
| 13,602 |
|
Others minor than S/17 million |
|
| 56,337 |
|
|
| 69,926 |
|
Total |
|
| 998,702 |
|
|
| 1,125,722 |
|
| (g) | Below are the debt instruments measured at fair value through other comprehensive income and at amortized cost, classified by stages, in accordance with IFRS 9 as of March 31, 2020 and December 31, 2019: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
Debt instruments measured at fair value through other comprehensive income and at amortized cost |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Corporate, leasing and subordinated bonds |
|
| 7,482,651 |
|
|
| 217,049 |
|
|
| — |
|
|
| 7,699,700 |
|
|
| 7,866,111 |
|
|
| 333,175 |
|
|
| — |
|
|
| 8,199,286 |
|
Peruvian Sovereign Bonds |
|
| 6,347,390 |
|
|
| — |
|
|
| — |
|
|
| 6,347,390 |
|
|
| 5,704,970 |
|
|
| — |
|
|
| — |
|
|
| 5,704,970 |
|
Negotiable Certificates of Deposit issued by BCRP |
|
| 1,131,281 |
|
|
| — |
|
|
| — |
|
|
| 1,131,281 |
|
|
| 1,483,493 |
|
|
| — |
|
|
| — |
|
|
| 1,483,493 |
|
Bonds guaranteed by the Peruvian Government |
|
| 655,343 |
|
|
| — |
|
|
| — |
|
|
| 655,343 |
|
|
| 668,073 |
|
|
| — |
|
|
| — |
|
|
| 668,073 |
|
Global Bonds of the Republic of Colombia |
|
| 148,413 |
|
|
| — |
|
|
| — |
|
|
| 148,413 |
|
|
| 114,982 |
|
|
| — |
|
|
| — |
|
|
| 114,982 |
|
Global Bonds of the Republic of Peru |
|
| 81,712 |
|
|
| — |
|
|
| — |
|
|
| 81,712 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total |
|
| 15,846,790 |
|
|
| 217,049 |
|
|
| — |
|
|
| 16,063,839 |
|
|
| 15,837,629 |
|
|
| 333,175 |
|
|
| — |
|
|
| 16,170,804 |
|
The Group rates its financial assets into Stage 1, Stage 2 and Stage 3, as described below:
Stage 1: When the financial assets are first recognized, the Group recognizes an allowance based on 12 months ECLs. Stage 1 also includes financial assets whose credit risk has improved and the loan has been reclassified from Stage 2.
Stage 2: When a financial asset has shown a significant increase in credit risk since origination, the Group records an allowance for the lifetime ECLs. Stage 2 also includes financial assets whose credit risk has improved and the financial asset has been reclassified from Stage 3.
Stage 3: Financial assets considered credit -impaired. The Group records an allowance for the lifetime financial asset.
For more information, see Note 30.1 of the Annual Consolidated Financial Statements.
19
| (a) | This caption is made up as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Direct loans |
|
|
|
|
|
|
|
|
Loans |
|
| 28,758,757 |
|
|
| 28,504,689 |
|
Credit cards |
|
| 5,805,833 |
|
|
| 5,876,983 |
|
Leasing |
|
| 1,384,055 |
|
|
| 1,533,395 |
|
Discounted notes |
|
| 557,110 |
|
|
| 686,164 |
|
Factoring |
|
| 355,291 |
|
|
| 374,192 |
|
Advances and overdrafts |
|
| 139,487 |
|
|
| 87,373 |
|
Refinanced loans |
|
| 258,769 |
|
|
| 251,180 |
|
Past due and under legal collection loans |
|
| 1,004,165 |
|
|
| 943,168 |
|
|
|
| 38,263,467 |
|
|
| 38,257,144 |
|
Plus (minus) |
|
|
|
|
|
|
|
|
Accrued interest from performing loans |
|
| 334,764 |
|
|
| 316,171 |
|
Unearned interest and interest collected in advance |
|
| (41,646 | ) |
|
| (41,683 | ) |
Impairment allowance for loans (d) |
|
| (1,494,533 | ) |
|
| (1,394,779 | ) |
Total direct loans, net |
|
| 37,062,052 |
|
|
| 37,136,853 |
|
Indirect loans |
|
| 3,992,977 |
|
|
| 4,101,977 |
|
| (b) | The classification of the direct loan portfolio is as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Commercial loans (c.1) (*) |
|
| 17,302,879 |
|
|
| 17,479,006 |
|
Consumer loans (c.1) |
|
| 12,905,382 |
|
|
| 12,821,567 |
|
Mortgage loans (c.1) |
|
| 7,337,875 |
|
|
| 7,206,445 |
|
Small and micro-business loans (c.1) |
|
| 717,331 |
|
|
| 750,126 |
|
Total |
|
| 38,263,467 |
|
|
| 38,257,144 |
|
| (*) | In 2019, Interbank acquired a commercial loan from Sumitomo Mitsui Banking Corporation for an amount of S/164,950,000. |
|
20
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
Direct loans, (c.1) |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Not impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High grade |
|
| 19,492,176 |
|
|
| 427,845 |
|
|
| — |
|
|
| 19,920,021 |
|
|
| 28,314,167 |
|
|
| 271,610 |
|
|
| — |
|
|
| 28,585,777 |
|
Standard grade |
|
| 3,681,179 |
|
|
| 582,047 |
|
|
| — |
|
|
| 4,263,226 |
|
|
| 4,675,010 |
|
|
| 528,372 |
|
|
| — |
|
|
| 5,203,382 |
|
Sub-standard grade |
|
| 9,572,998 |
|
|
| 927,550 |
|
|
| — |
|
|
| 10,500,548 |
|
|
| 358,527 |
|
|
| 969,387 |
|
|
| — |
|
|
| 1,327,914 |
|
Past due but not impaired |
|
| 1,721,909 |
|
|
| 1,079,890 |
|
|
| — |
|
|
| 2,801,799 |
|
|
| 1,474,310 |
|
|
| 770,876 |
|
|
| — |
|
|
| 2,245,186 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| 8,533 |
|
|
| 8,533 |
|
|
| — |
|
|
| — |
|
|
| 8,444 |
|
|
| 8,444 |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 769,340 |
|
|
| 769,340 |
|
|
| — |
|
|
| — |
|
|
| 886,441 |
|
|
| 886,441 |
|
Total direct loans |
|
| 34,468,262 |
|
|
| 3,017,332 |
|
|
| 777,873 |
|
|
| 38,263,467 |
|
|
| 34,822,014 |
|
|
| 2,540,245 |
|
|
| 894,885 |
|
|
| 38,257,144 |
|
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
Contingent Credits: Guarantees and stand by letters, import and export letters of credit (substantially, all indirect loans correspond to commercial loans) |
| Stage 1 S/(000) |
|
| Stage 2 S/(000) |
|
| Stage 3 S/(000) |
|
| Total S/(000) |
|
| Stage 1 S/(000) |
|
| Stage 2 S/(000) |
|
| Stage 3 S/(000) |
|
| Total S/(000) |
| ||||||||
Not impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High grade |
|
| 806,314 |
|
|
| 18,197 |
|
|
| — |
|
|
| 824,511 |
|
|
| 3,733,040 |
|
|
| 62,860 |
|
|
| — |
|
|
| 3,795,900 |
|
Standard grade |
|
| 80,655 |
|
|
| 16,429 |
|
|
| — |
|
|
| 97,084 |
|
|
| 108,515 |
|
|
| 118,463 |
|
|
| — |
|
|
| 226,978 |
|
Sub-standard grade |
|
| 2,955,073 |
|
|
| 86,016 |
|
|
| — |
|
|
| 3,041,089 |
|
|
| 7,597 |
|
|
| 41,095 |
|
|
| — |
|
|
| 48,692 |
|
Past due but not impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| 22,607 |
|
|
| 22,607 |
|
|
| — |
|
|
| — |
|
|
| 22,607 |
|
|
| 22,607 |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 7,686 |
|
|
| 7,686 |
|
|
| — |
|
|
| — |
|
|
| 7,800 |
|
|
| 7,800 |
|
Total indirect loans |
|
| 3,842,042 |
|
|
| 120,642 |
|
|
| 30,293 |
|
|
| 3,992,977 |
|
|
| 3,849,152 |
|
|
| 222,418 |
|
|
| 30,407 |
|
|
| 4,101,977 |
|
21
(c.1)The following tables show the credit quality and maximum exposure to credit risk for each classification of the direct loan portfolio:
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
| ||||||||
Commercial loans |
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Not impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High grade |
|
| 4,426,930 |
|
|
| 110,504 |
|
|
| — |
|
|
| 4,537,434 |
|
|
| 12,786,786 |
|
|
| 53,449 |
|
|
| — |
|
|
| 12,840,235 |
|
Standard grade |
|
| 1,760,068 |
|
|
| 177,175 |
|
|
| — |
|
|
| 1,937,243 |
|
|
| 2,605,473 |
|
|
| 127,347 |
|
|
| — |
|
|
| 2,732,820 |
|
Sub-standard grade |
|
| 9,225,041 |
|
|
| 388,912 |
|
|
| — |
|
|
| 9,613,953 |
|
|
| 132,707 |
|
|
| 401,991 |
|
|
| — |
|
|
| 534,698 |
|
Past due but not impaired |
|
| 703,950 |
|
|
| 308,308 |
|
|
| — |
|
|
| 1,012,258 |
|
|
| 1,069,813 |
|
|
| 102,267 |
|
|
| — |
|
|
| 1,172,080 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| 8,533 |
|
|
| 8,533 |
|
|
| — |
|
|
| — |
|
|
| 8,444 |
|
|
| 8,444 |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 193,458 |
|
|
| 193,458 |
|
|
| — |
|
|
| — |
|
|
| 190,729 |
|
|
| 190,729 |
|
Total commercial loans |
|
| 16,115,989 |
|
|
| 984,899 |
|
|
| 201,991 |
|
|
| 17,302,879 |
|
|
| 16,594,779 |
|
|
| 685,054 |
|
|
| 199,173 |
|
|
| 17,479,006 |
|
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
| ||||||||
Consumer loans |
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Not impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High grade |
|
| 9,205,477 |
|
|
| 243,959 |
|
|
| — |
|
|
| 9,449,436 |
|
|
| 9,319,421 |
|
|
| 176,764 |
|
|
| — |
|
|
| 9,496,185 |
|
Standard grade |
|
| 1,348,502 |
|
|
| 368,633 |
|
|
| — |
|
|
| 1,717,135 |
|
|
| 1,443,966 |
|
|
| 311,673 |
|
|
| — |
|
|
| 1,755,639 |
|
Sub-standard grade |
|
| 204,099 |
|
|
| 407,839 |
|
|
| — |
|
|
| 611,938 |
|
|
| 196,126 |
|
|
| 362,228 |
|
|
| — |
|
|
| 558,354 |
|
Past due but not impaired |
|
| 264,961 |
|
|
| 552,593 |
|
|
| — |
|
|
| 817,554 |
|
|
| 167,295 |
|
|
| 443,693 |
|
|
| — |
|
|
| 610,988 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 309,319 |
|
|
| 309,319 |
|
|
| — |
|
|
| — |
|
|
| 400,401 |
|
|
| 400,401 |
|
Total consumer loans |
|
| 11,023,039 |
|
|
| 1,573,024 |
|
|
| 309,319 |
|
|
| 12,905,382 |
|
|
| 11,126,808 |
|
|
| 1,294,358 |
|
|
| 400,401 |
|
|
| 12,821,567 |
|
22
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
| ||||||||
Mortgage loans |
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Not impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High grade |
|
| 5,373,425 |
|
|
| 2,488 |
|
|
| — |
|
|
| 5,375,913 |
|
|
| 5,676,737 |
|
|
| 21,775 |
|
|
| — |
|
|
| 5,698,512 |
|
Standard grade |
|
| 544,930 |
|
|
| 23,303 |
|
|
| — |
|
|
| 568,233 |
|
|
| 550,656 |
|
|
| 65,662 |
|
|
| — |
|
|
| 616,318 |
|
Sub-standard grade |
|
| 141,607 |
|
|
| 93,067 |
|
|
| — |
|
|
| 234,674 |
|
|
| 25,855 |
|
|
| 190,605 |
|
|
| — |
|
|
| 216,460 |
|
Past due but not impaired |
|
| 735,111 |
|
|
| 200,354 |
|
|
| — |
|
|
| 935,465 |
|
|
| 225,687 |
|
|
| 201,506 |
|
|
| — |
|
|
| 427,193 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 223,590 |
|
|
| 223,590 |
|
|
| — |
|
|
| — |
|
|
| 247,962 |
|
|
| 247,962 |
|
Total mortgage loans |
|
| 6,795,073 |
|
|
| 319,212 |
|
|
| 223,590 |
|
|
| 7,337,875 |
|
|
| 6,478,935 |
|
|
| 479,548 |
|
|
| 247,962 |
|
|
| 7,206,445 |
|
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
| ||||||||
Small and micro-business loans |
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Not impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High grade |
|
| 486,344 |
|
|
| 70,894 |
|
|
| — |
|
|
| 557,238 |
|
|
| 531,223 |
|
|
| 19,622 |
|
|
| — |
|
|
| 550,845 |
|
Standard grade |
|
| 27,679 |
|
|
| 12,936 |
|
|
| — |
|
|
| 40,615 |
|
|
| 74,915 |
|
|
| 23,690 |
|
|
| — |
|
|
| 98,605 |
|
Sub-standard grade |
|
| 2,251 |
|
|
| 37,732 |
|
|
| — |
|
|
| 39,983 |
|
|
| 3,839 |
|
|
| 14,563 |
|
|
| — |
|
|
| 18,402 |
|
Past due but not impaired |
|
| 17,887 |
|
|
| 18,635 |
|
|
| — |
|
|
| 36,522 |
|
|
| 11,515 |
|
|
| 23,410 |
|
|
| — |
|
|
| 34,925 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 42,973 |
|
|
| 42,973 |
|
|
| — |
|
|
| — |
|
|
| 47,349 |
|
|
| 47,349 |
|
Total small and micro-business loans |
|
| 534,161 |
|
|
| 140,197 |
|
|
| 42,973 |
|
|
| 717,331 |
|
|
| 621,492 |
|
|
| 81,285 |
|
|
| 47,349 |
|
|
| 750,126 |
|
23
| (d) | Following is the movement of the allowance for expected credit loss for direct and indirect loans: |
| (d.1) | Direct loans |
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.12.2019 |
| |||||||||||||||||||||||||||
Direct loans |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Total |
| |||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||
Expected credit loss at the beginning of period balances |
|
| 461,892 |
|
|
| 394,773 |
|
|
| 538,114 |
|
|
| 1,394,779 |
|
|
| 394,801 |
|
|
| 462,749 |
|
|
| 507,254 |
|
|
| 1,364,804 |
|
|
| 1,364,804 |
|
Impact of the expected credit loss in the consolidated statement of income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New originated or purchased assets |
|
| 68,032 |
|
|
| — |
|
|
| — |
|
|
| 68,032 |
|
|
| 93,533 |
|
|
| — |
|
|
| — |
|
|
| 93,533 |
|
|
| 317,473 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (29,357 | ) |
|
| (10,723 | ) |
|
| (8,878 | ) |
|
| (48,958 | ) |
|
| (33,186 | ) |
|
| (22,042 | ) |
|
| (9,612 | ) |
|
| (64,840 | ) |
|
| (223,510 | ) |
Transfers to Stage 1 |
|
| 62,925 |
|
|
| (60,072 | ) |
|
| (2,853 | ) |
|
| — |
|
|
| 78,148 |
|
|
| (77,386 | ) |
|
| (762 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (66,197 | ) |
|
| 84,126 |
|
|
| (17,929 | ) |
|
| — |
|
|
| (60,936 | ) |
|
| 74,221 |
|
|
| (13,285 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (400 | ) |
|
| (71,341 | ) |
|
| 71,741 |
|
|
| — |
|
|
| (3,152 | ) |
|
| (73,550 | ) |
|
| 76,702 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (29,800 | ) |
|
| 165,829 |
|
|
| 153,202 |
|
|
| 289,231 |
|
|
| (55,334 | ) |
|
| 122,047 |
|
|
| 116,857 |
|
|
| 183,570 |
|
|
| 707,008 |
|
Others (*) |
|
| 46,739 |
|
|
| 36,703 |
|
|
| (75,114 | ) |
|
| 8,328 |
|
|
| (6,160 | ) |
|
| (5,770 | ) |
|
| (2,673 | ) |
|
| (14,603 | ) |
|
| (28,228 | ) |
Total |
|
| 51,942 |
|
|
| 144,522 |
|
|
| 120,169 |
|
|
| 316,633 |
|
|
| 12,913 |
|
|
| 17,520 |
|
|
| 167,227 |
|
|
| 197,660 |
|
|
| 772,743 |
|
Write offs (**) |
|
| — |
|
|
| — |
|
|
| (255,967 | ) |
|
| (255,967 | ) |
|
| — |
|
|
| — |
|
|
| (193,042 | ) |
|
| (193,042 | ) |
|
| (874,068 | ) |
Recoveries |
|
| — |
|
|
| — |
|
|
| 27,754 |
|
|
| 27,754 |
|
|
| — |
|
|
| — |
|
|
| 31,312 |
|
|
| 31,312 |
|
|
| 136,468 |
|
Foreign exchange effect (***) |
|
| 903 |
|
|
| 2,830 |
|
|
| 7,601 |
|
|
| 11,334 |
|
|
| (362 | ) |
|
| (1,156 | ) |
|
| (2,973 | ) |
|
| (4,491 | ) |
|
| (5,168 | ) |
Expected credit loss at the end of period balances |
|
| 514,737 |
|
|
| 542,125 |
|
|
| 437,671 |
|
|
| 1,494,533 |
|
|
| 407,352 |
|
|
| 479,113 |
|
|
| 509,778 |
|
|
| 1,396,243 |
|
|
| 1,394,779 |
|
24
| (d.1.1) | The following tables show the movement of the allowance for expected credit losses for each classification of the direct loan portfolio: |
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.12.2019 |
| |||||||||||||||||||||||||||
Direct loans – Commercial |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Total |
| |||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||
Expected credit loss at the beginning of period balances |
|
| 54,693 |
|
|
| 24,399 |
|
|
| 67,158 |
|
|
| 146,250 |
|
|
| 68,705 |
|
|
| 27,397 |
|
|
| 98,111 |
|
|
| 194,213 |
|
|
| 194,213 |
|
Impact of the expected credit loss in the consolidated statement of income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New originated or purchased assets |
|
| 11,537 |
|
|
| — |
|
|
| — |
|
|
| 11,537 |
|
|
| 22,939 |
|
|
| — |
|
|
| — |
|
|
| 22,939 |
|
|
| 42,558 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (11,586 | ) |
|
| (1,885 | ) |
|
| (455 | ) |
|
| (13,926 | ) |
|
| (16,696 | ) |
|
| (4,757 | ) |
|
| (749 | ) |
|
| (22,202 | ) |
|
| (54,346 | ) |
Transfers to Stage 1 |
|
| 3,188 |
|
|
| (3,156 | ) |
|
| (32 | ) |
|
| — |
|
|
| 1,892 |
|
|
| (1,892 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (4,920 | ) |
|
| 4,977 |
|
|
| (57 | ) |
|
| — |
|
|
| (5,453 | ) |
|
| 5,765 |
|
|
| (312 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (100 | ) |
|
| (877 | ) |
|
| 977 |
|
|
| — |
|
|
| (613 | ) |
|
| (2,435 | ) |
|
| 3,048 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| 3,170 |
|
|
| 9,142 |
|
|
| 11,650 |
|
|
| 23,962 |
|
|
| (1,186 | ) |
|
| 4,372 |
|
|
| 4,717 |
|
|
| 7,903 |
|
|
| 29,078 |
|
Others (*) |
|
| (7,054 | ) |
|
| 9,767 |
|
|
| (5,856 | ) |
|
| (3,143 | ) |
|
| (4,502 | ) |
|
| (1,551 | ) |
|
| (417 | ) |
|
| (6,470 | ) |
|
| (35,128 | ) |
Total |
|
| (5,765 | ) |
|
| 17,968 |
|
|
| 6,227 |
|
|
| 18,430 |
|
|
| (3,619 | ) |
|
| (498 | ) |
|
| 6,287 |
|
|
| 2,170 |
|
|
| (17,838 | ) |
Write offs (**) |
|
| — |
|
|
| — |
|
|
| (2,336 | ) |
|
| (2,336 | ) |
|
| — |
|
|
| — |
|
|
| (1,124 | ) |
|
| (1,124 | ) |
|
| (29,800 | ) |
Recoveries |
|
| — |
|
|
| — |
|
|
| 355 |
|
|
| 355 |
|
|
| — |
|
|
| — |
|
|
| 213 |
|
|
| 213 |
|
|
| 968 |
|
Foreign exchange effect (***) |
|
| 722 |
|
|
| 326 |
|
|
| 630 |
|
|
| 1,678 |
|
|
| (275 | ) |
|
| (164 | ) |
|
| (579 | ) |
|
| (1,018 | ) |
|
| (1,293 | ) |
Expected credit loss at the end of period balances |
|
| 49,650 |
|
|
| 42,693 |
|
|
| 72,034 |
|
|
| 164,377 |
|
|
| 64,811 |
|
|
| 26,735 |
|
|
| 102,908 |
|
|
| 194,454 |
|
|
| 146,250 |
|
25
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.12.2019 |
| |||||||||||||||||||||||||||
Direct loans – Consumer |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Total |
| |||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||
Expected credit loss at the beginning of period balances |
|
| 384,989 |
|
|
| 332,697 |
|
|
| 340,914 |
|
|
| 1,058,600 |
|
|
| 303,953 |
|
|
| 398,353 |
|
|
| 284,645 |
|
|
| 986,951 |
|
|
| 986,951 |
|
Impact of the expected credit loss in the consolidated statement of income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New originated or purchased assets |
|
| 51,154 |
|
|
| — |
|
|
| — |
|
|
| 51,154 |
|
|
| 64,494 |
|
|
| — |
|
|
| — |
|
|
| 64,494 |
|
|
| 257,150 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (15,692 | ) |
|
| (8,254 | ) |
|
| (4,478 | ) |
|
| (28,424 | ) |
|
| (14,707 | ) |
|
| (16,532 | ) |
|
| (5,814 | ) |
|
| (37,053 | ) |
|
| (144,325 | ) |
Transfers to Stage 1 |
|
| 48,282 |
|
|
| (45,461 | ) |
|
| (2,821 | ) |
|
| — |
|
|
| 70,421 |
|
|
| (69,659 | ) |
|
| (762 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (57,194 | ) |
|
| 64,409 |
|
|
| (7,215 | ) |
|
| — |
|
|
| (53,224 | ) |
|
| 58,372 |
|
|
| (5,148 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (149 | ) |
|
| (66,844 | ) |
|
| 66,993 |
|
|
| — |
|
|
| (2,371 | ) |
|
| (65,351 | ) |
|
| 67,722 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (32,827 | ) |
|
| 140,654 |
|
|
| 85,953 |
|
|
| 193,780 |
|
|
| (49,057 | ) |
|
| 113,558 |
|
|
| 97,081 |
|
|
| 161,582 |
|
|
| 607,998 |
|
Others (*) |
|
| 59,024 |
|
|
| 17,013 |
|
|
| (17,916 | ) |
|
| 58,121 |
|
|
| 960 |
|
|
| (4,256 | ) |
|
| (1,561 | ) |
|
| (4,857 | ) |
|
| 9,467 |
|
Total |
|
| 52,598 |
|
|
| 101,517 |
|
|
| 120,516 |
|
|
| 274,631 |
|
|
| 16,516 |
|
|
| 16,132 |
|
|
| 151,518 |
|
|
| 184,166 |
|
|
| 730,290 |
|
Write offs (**) |
|
| — |
|
|
| — |
|
|
| (239,170 | ) |
|
| (239,170 | ) |
|
| — |
|
|
| — |
|
|
| (179,361 | ) |
|
| (179,361 | ) |
|
| (785,863 | ) |
Recoveries |
|
| — |
|
|
| — |
|
|
| 26,162 |
|
|
| 26,162 |
|
|
| — |
|
|
| — |
|
|
| 30,086 |
|
|
| 30,086 |
|
|
| 130,184 |
|
Foreign exchange effect (***) |
|
| 125 |
|
|
| 2,354 |
|
|
| 5,687 |
|
|
| 8,166 |
|
|
| (58 | ) |
|
| (917 | ) |
|
| (1,761 | ) |
|
| (2,736 | ) |
|
| (2,962 | ) |
Expected credit loss at the end of period balances |
|
| 437,712 |
|
|
| 436,568 |
|
|
| 254,109 |
|
|
| 1,128,389 |
|
|
| 320,411 |
|
|
| 413,568 |
|
|
| 285,127 |
|
|
| 1,019,106 |
|
|
| 1,058,600 |
|
26
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.12.2019 |
| |||||||||||||||||||||||||||
Direct loans – Mortgage |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Total |
| |||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||
Expected credit loss at the beginning of period balances |
|
| 9,418 |
|
|
| 22,788 |
|
|
| 89,476 |
|
|
| 121,682 |
|
|
| 8,428 |
|
|
| 20,142 |
|
|
| 86,040 |
|
|
| 114,610 |
|
|
| 114,610 |
|
Impact of the expected credit loss in the consolidated statement of income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New originated or purchased assets |
|
| 431 |
|
|
| — |
|
|
| — |
|
|
| 431 |
|
|
| 544 |
|
|
| — |
|
|
| — |
|
|
| 544 |
|
|
| 2,153 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (373 | ) |
|
| (283 | ) |
|
| (3,369 | ) |
|
| (4,025 | ) |
|
| (160 | ) |
|
| (290 | ) |
|
| (2,768 | ) |
|
| (3,218 | ) |
|
| (15,205 | ) |
Transfers to Stage 1 |
|
| 10,232 |
|
|
| (10,232 | ) |
|
| — |
|
|
| — |
|
|
| 4,207 |
|
|
| (4,207 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (457 | ) |
|
| 11,043 |
|
|
| (10,586 | ) |
|
| — |
|
|
| (732 | ) |
|
| 8,416 |
|
|
| (7,684 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (8 | ) |
|
| (885 | ) |
|
| 893 |
|
|
| — |
|
|
| (24 | ) |
|
| (1,774 | ) |
|
| 1,798 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| 450 |
|
|
| 11,186 |
|
|
| 50,537 |
|
|
| 62,173 |
|
|
| (3,776 | ) |
|
| 12 |
|
|
| 8,927 |
|
|
| 5,163 |
|
|
| 28,120 |
|
Others (*) |
|
| (4,897 | ) |
|
| (2,297 | ) |
|
| (50,491 | ) |
|
| (57,685 | ) |
|
| 221 |
|
|
| (278 | ) |
|
| (788 | ) |
|
| (845 | ) |
|
| (1,845 | ) |
Total |
|
| 5,378 |
|
|
| 8,532 |
|
|
| (13,016 | ) |
|
| 894 |
|
|
| 280 |
|
|
| 1,879 |
|
|
| (515 | ) |
|
| 1,644 |
|
|
| 13,223 |
|
Write offs (**) |
|
| — |
|
|
| — |
|
|
| (999 | ) |
|
| (999 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (5,427 | ) |
Recoveries |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Foreign exchange effect (***) |
|
| 43 |
|
|
| 148 |
|
|
| 1,170 |
|
|
| 1,361 |
|
|
| (22 | ) |
|
| (72 | ) |
|
| (581 | ) |
|
| (675 | ) |
|
| (724 | ) |
Expected credit loss at the end of period balances |
|
| 14,839 |
|
|
| 31,468 |
|
|
| 76,631 |
|
|
| 122,938 |
|
|
| 8,686 |
|
|
| 21,949 |
|
|
| 84,944 |
|
|
| 115,579 |
|
|
| 121,682 |
|
27
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.12.2019 |
| |||||||||||||||||||||||||||
Direct loans – Small and micro-business |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Total |
| |||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||
Expected credit loss at the beginning of period balances |
|
| 12,792 |
|
|
| 14,889 |
|
|
| 40,566 |
|
|
| 68,247 |
|
|
| 13,715 |
|
|
| 16,857 |
|
|
| 38,458 |
|
|
| 69,030 |
|
|
| 69,030 |
|
Impact of the expected credit loss in the consolidated statement of income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New originated or purchased assets |
|
| 4,910 |
|
|
| — |
|
|
| — |
|
|
| 4,910 |
|
|
| 5,556 |
|
|
| — |
|
|
| — |
|
|
| 5,556 |
|
|
| 15,612 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (1,706 | ) |
|
| (301 | ) |
|
| (576 | ) |
|
| (2,583 | ) |
|
| (1,623 | ) |
|
| (463 | ) |
|
| (281 | ) |
|
| (2,367 | ) |
|
| (9,634 | ) |
Transfers to Stage 1 |
|
| 1,223 |
|
|
| (1,223 | ) |
|
| — |
|
|
| — |
|
|
| 1,628 |
|
|
| (1,628 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (3,626 | ) |
|
| 3,697 |
|
|
| (71 | ) |
|
| — |
|
|
| (1,527 | ) |
|
| 1,668 |
|
|
| (141 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (143 | ) |
|
| (2,735 | ) |
|
| 2,878 |
|
|
| — |
|
|
| (144 | ) |
|
| (3,990 | ) |
|
| 4,134 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (593 | ) |
|
| 4,847 |
|
|
| 5,062 |
|
|
| 9,316 |
|
|
| (1,315 | ) |
|
| 4,105 |
|
|
| 6,132 |
|
|
| 8,922 |
|
|
| 41,812 |
|
Others (*) |
|
| (334 | ) |
|
| 12,220 |
|
|
| (851 | ) |
|
| 11,035 |
|
|
| (2,839 | ) |
|
| 315 |
|
|
| 93 |
|
|
| (2,431 | ) |
|
| (722 | ) |
Total |
|
| (269 | ) |
|
| 16,505 |
|
|
| 6,442 |
|
|
| 22,678 |
|
|
| (264 | ) |
|
| 7 |
|
|
| 9,937 |
|
|
| 9,680 |
|
|
| 47,068 |
|
Write offs (**) |
|
| — |
|
|
| — |
|
|
| (13,462 | ) |
|
| (13,462 | ) |
|
| — |
|
|
| — |
|
|
| (12,557 | ) |
|
| (12,557 | ) |
|
| (52,978 | ) |
Recoveries |
|
| — |
|
|
| — |
|
|
| 1,237 |
|
|
| 1,237 |
|
|
| — |
|
|
| — |
|
|
| 1,013 |
|
|
| 1,013 |
|
|
| 5,316 |
|
Foreign exchange effect (***) |
|
| 13 |
|
|
| 2 |
|
|
| 114 |
|
|
| 129 |
|
|
| (7 | ) |
|
| (3 | ) |
|
| (52 | ) |
|
| (62 | ) |
|
| (189 | ) |
Expected credit loss at the end of period balances |
|
| 12,536 |
|
|
| 31,396 |
|
|
| 34,897 |
|
|
| 78,829 |
|
|
| 13,444 |
|
|
| 16,861 |
|
|
| 36,799 |
|
|
| 67,104 |
|
|
| 68,247 |
|
28
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.12.2019 |
| |||||||||||||||||||||||||||||||
Contingent credits, guarantees and stand-by letters, import and export letters of credit |
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Stage 1 |
|
| Stage 2 |
|
| Stage 3 |
|
| Total |
|
| Total |
| |||||||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||||||||||
Expected credit loss at the beginning of period balances |
|
| 16,367 |
|
|
| 4,720 |
|
|
| 18,607 |
|
|
| 39,694 |
|
|
| 19,829 |
|
|
| 19,753 |
|
|
| 22,469 |
|
|
| 62,051 |
|
|
| 62,051 |
| ||||
Impact of the expected credit loss in the consolidated statement of income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
New originated or purchased assets |
|
| 1,118 |
|
|
| — |
|
|
| — |
|
|
| 1,118 |
|
|
| 2,201 |
|
|
| — |
|
|
| — |
|
|
| 2,201 |
|
|
| 6,937 |
| ||||
Assets derecognized or repaid (excluding write offs) |
|
| (887 | ) |
|
| (395 | ) |
|
| (43 | ) |
|
| (1,325 | ) |
|
| (6,200 | ) |
|
| (5,046 | ) |
|
| (12 | ) |
|
| (11,258 | ) |
|
| (19,800 | ) | ||||
Transfers to Stage 1 |
|
| 1,659 |
|
|
| (1,659 | ) |
|
| — |
|
|
| — |
|
|
| 572 |
|
|
| (572 | ) |
|
| — |
|
|
| — |
|
|
| — |
| ||||
Transfers to Stage 2 |
|
| (127 | ) |
|
| 127 |
|
|
| — |
|
|
| — |
|
|
| (586 | ) |
|
| 612 |
|
|
| (26 | ) |
|
| — |
|
|
| — |
| ||||
Transfers to Stage 3 |
|
| — |
|
|
| (1 | ) |
|
| 1 |
|
|
| — |
|
|
| (2 | ) |
|
| (1 | ) |
|
| 3 |
|
|
| — |
|
|
| — |
| ||||
Impact on the expected credit loss for credits that change stage in the period |
|
| (1,407 | ) |
|
| 350 |
|
|
| 1 |
|
|
| (1,056 | ) |
|
| (344 | ) |
|
| 31 |
|
|
| 97 |
|
|
| (216 | ) |
|
| (4,329 | ) | ||||
Others (*) |
|
| (1,942 | ) |
|
| (251 | ) |
|
| (559 | ) |
|
| (2,752 | ) |
|
| (314 | ) |
|
| 654 |
|
|
| (2,313 | ) |
|
| (1,973 | ) |
|
| (4,740 | ) | ||||
Total |
|
| (1,586 | ) |
|
| (1,829 | ) |
|
| (600 | ) |
|
| (4,015 | ) |
|
| (4,673 | ) |
|
| (4,322 | ) |
|
| (2,251 | ) |
|
| (11,246 | ) |
|
| (21,932 | ) | ||||
Write offs (**) |
|
| — |
|
|
| — |
|
|
| 1 |
|
|
| 1 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
| ||||
Recoveries |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
| ||||
Foreign exchange effect (***) |
|
| 285 |
|
|
| 127 |
|
|
| 18 |
|
|
| 430 |
|
|
| (156 | ) |
|
| (227 | ) |
|
| (8 | ) |
|
| (391 | ) |
|
| (425 | ) | ||||
Expected credit loss at the end of period balances |
|
| 15,066 |
|
|
| 3,018 |
|
|
| 18,026 |
|
|
| 36,110 |
|
|
| 15,000 |
|
|
| 15,204 |
|
|
| 20,210 |
|
|
| 50,414 |
|
|
| 39,694 |
|
(*) | Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (partial amortizations that did not represent a reduction or collection of the loan), and (ii) the execution of contingent loans (conversion of indirect debt into direct debt). |
(**) | Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or collection of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt). |
(***) | Corresponds mainly to the effect of the exchange rate and the variation of the time value of money. |
29
| (a) | This caption is made up as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
|
| Acquisition or construction year |
|
| Valuation methodology as of March 31, 2020 and December 31, 2019 | |||
|
| S/(000) |
|
| S/(000) |
|
|
|
|
|
|
| ||
Land |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Isidro – Lima |
|
| 249,591 |
|
|
| 239,152 |
|
|
| 2009 |
|
| Appraisal |
San Martín de Porres – Lima |
|
| 74,685 |
|
|
| 72,013 |
|
|
| 2015 |
|
| Appraisal |
Piura |
|
| 52,266 |
|
|
| 50,396 |
|
|
| 2008 |
|
| Appraisal |
Sullana |
|
| 17,154 |
|
|
| 16,540 |
|
|
| 2012 |
|
| Appraisal |
Santa Clara – Lima |
|
| 13,442 |
|
|
| 12,961 |
|
|
| 2017 |
|
| Appraisal |
Lurin |
|
| 4,031 |
|
|
| 4,032 |
|
|
| 2008 |
|
| Appraisal |
Others |
|
| 4,870 |
|
|
| 4,695 |
|
| - |
|
| DCF/Appraisal | |
|
|
| 416,039 |
|
|
| 399,789 |
|
|
|
|
|
|
|
Completed investment property - “Real Plaza” Shopping Malls |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Talara |
|
| 35,900 |
|
|
| 37,772 |
|
|
| 2015 |
|
| DCF |
|
|
| 35,900 |
|
|
| 37,772 |
|
|
|
|
|
|
|
Buildings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orquídeas - San Isidro - Lima |
|
| 164,382 |
|
|
| 168,787 |
|
|
| 2017 |
|
| DCF |
Ate Vitarte – Lima |
|
| 86,758 |
|
|
| 82,925 |
|
|
| 2006 |
|
| DCF |
Chorrillos – Lima |
|
| 71,988 |
|
|
| 71,680 |
|
|
| 2017 |
|
| DCF |
Chimbote |
|
| 45,513 |
|
|
| 49,898 |
|
|
| 2015 |
|
| DCF |
Maestro-Huancayo |
|
| 34,340 |
|
|
| 34,569 |
|
|
| 2017 |
|
| DCF |
Cusco |
|
| 30,855 |
|
|
| 30,774 |
|
|
| 2017 |
|
| DCF |
Pardo y Aliaga – Lima |
|
| 22,236 |
|
|
| 19,963 |
|
|
| 2008 |
|
| DCF |
Panorama – Lima |
|
| 21,861 |
|
|
| 21,819 |
|
|
| 2016 |
|
| DCF |
Trujillo |
|
| 17,646 |
|
|
| 17,600 |
|
|
| 2016 |
|
| DCF |
Cercado de Lima – Lima |
|
| 14,062 |
|
|
| 13,545 |
|
|
| 2017 |
|
| DCF |
Others |
|
| 23,782 |
|
|
| 22,975 |
|
|
| 2017 |
|
| DCF |
|
|
| 533,423 |
|
|
| 534,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
| 985,362 |
|
|
| 972,096 |
|
|
|
|
|
|
|
DCF: Discounted cash flow
| (i) | As of March 31, 2020 and December 31, 2019, there are no liens on investment property. |
| (b) | The net gain on investment properties consists of the following: |
|
| 31.03.2020 |
|
| 31.03.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Gain on valuation of investment property |
|
| 11,481 |
|
|
| 1,322 |
|
Income from rental of investment property |
|
| 10,462 |
|
|
| 10,552 |
|
Total |
|
| 21,943 |
|
|
| 11,874 |
|
30
|
| 31.03.2020 |
|
| 31.03.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Beginning of period balances |
|
| 972,096 |
|
|
| 986,538 |
|
Additions |
|
| 1,785 |
|
|
| 1,735 |
|
Valuation gain |
|
| 11,481 |
|
|
| 1,322 |
|
Balance as of March 31 |
|
| 985,362 |
|
|
| 989,595 |
|
Balance as of December 31, 2019 |
|
|
|
|
|
| 972,096 |
|
| (d) | The valuation techniques to estimate the fair value and the main assumptions used are described in Note 7 “Investment property” of the Annual Consolidated Financial Statements. |
31
7. | Other accounts receivable and other assets, net, and other accounts payable, provisions and other liabilities |
| (a) | These captions are comprised of the following: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Accounts receivable and other assets |
|
|
|
|
|
|
|
|
Financial instruments |
|
|
|
|
|
|
|
|
Accounts receivable related to derivative financial instruments (b) |
|
| 441,692 |
|
|
| 220,776 |
|
Other accounts receivable, net |
|
| 388,551 |
|
|
| 393,254 |
|
Accounts receivable from sale of investments |
|
| 141,033 |
|
|
| 74,373 |
|
Assets for technical reserves for claims and premiums by reinsurers |
|
| 69,879 |
|
|
| 77,430 |
|
Operations in process |
|
| 36,527 |
|
|
| 45,613 |
|
Accounts receivable from reinsurers and coinsurers |
|
| 14,652 |
|
|
| 19,061 |
|
Insurance operations receivables, net |
|
| 12,590 |
|
|
| 7,499 |
|
Credit card commissions receivable |
|
| 9,994 |
|
|
| 13,200 |
|
|
|
| 1,114,918 |
|
|
| 851,206 |
|
Non-financial instruments |
|
|
|
|
|
|
|
|
Investments in associates |
|
| 80,758 |
|
|
| 72,301 |
|
Deferred charges |
|
| 72,423 |
|
|
| 63,377 |
|
Prepaid Income Tax |
|
| 25,467 |
|
|
| 25,270 |
|
Realizable assets, received as payment and seized through legal actions |
|
| 22,450 |
|
|
| 22,446 |
|
Public works tax deduction |
|
| 7,553 |
|
|
| 7,178 |
|
Prepaid rights to related entity |
|
| 6,874 |
|
|
| 6,628 |
|
Value Added Tax credit |
|
| 753 |
|
|
| 2,732 |
|
Others |
|
| 738 |
|
|
| 734 |
|
|
|
| 217,016 |
|
|
| 200,666 |
|
Total |
|
| 1,331,934 |
|
|
| 1,051,872 |
|
Accounts payable, provisions and other liabilities |
|
|
|
|
|
|
|
|
Financial instruments |
|
|
|
|
|
|
|
|
Contract with investment component |
|
| 502,403 |
|
|
| 465,542 |
|
Accounts payable related to derivative financial instruments (b) |
|
| 403,377 |
|
|
| 222,305 |
|
Other accounts payable |
|
| 402,564 |
|
|
| 436,331 |
|
Lease liabilities |
|
| 328,528 |
|
|
| 341,836 |
|
Operations in process |
|
| 110,263 |
|
|
| 132,982 |
|
Accounts payable for acquisitions of investments |
|
| 97,078 |
|
|
| 75,820 |
|
Workers’ profit sharing and salaries payable |
|
| 82,796 |
|
|
| 134,710 |
|
Allowance for indirect loan losses |
|
| 36,110 |
|
|
| 39,694 |
|
Accounts payable to reinsurers and coinsurers |
|
| 5,784 |
|
|
| 7,328 |
|
|
|
| 1,968,903 |
|
|
| 1,856,548 |
|
Non-financial instruments |
|
|
|
|
|
|
|
|
Taxes payable |
|
| 108,311 |
|
|
| 76,423 |
|
Deferred income |
|
| 50,362 |
|
|
| 55,348 |
|
Provision for other contingencies |
|
| 46,850 |
|
|
| 50,931 |
|
Others |
|
| 5,212 |
|
|
| 8,798 |
|
|
|
| 210,735 |
|
|
| 191,500 |
|
Total |
|
| 2,179,638 |
|
|
| 2,048,048 |
|
32
| (b) | The fair value of derivative financial instruments recorded as assets or liabilities, including their notional amounts as of March 31, 2020 and December 31, 2019 is presented below: |
As of March 31, 2020 |
| Assets |
|
| Liabilities |
|
| Notional amount |
|
| Effective part recognized in other comprehensive income during the year |
|
| Maturity |
| Hedged instruments |
|
| Caption of the interim condensed consolidated statement of financial position where the hedged item has been recognized |
| ||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
|
|
|
|
|
|
|
|
|
| ||||
Derivatives held for trading |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
| 63,459 |
|
|
| 72,892 |
|
|
| 10,271,371 |
|
|
| — |
|
| Between April 2020 and September 2021 |
|
| — |
|
|
| — |
|
Interest rate swaps |
|
| 213,803 |
|
|
| 221,691 |
|
|
| 4,860,358 |
|
|
| — |
|
| Between November 2020 and June 2036 |
|
| — |
|
|
| — |
|
Currency swaps |
|
| 47,963 |
|
|
| 40,957 |
|
|
| 2,031,411 |
|
|
| — |
|
| Between April 2020 and February 2027 |
|
| — |
|
|
| — |
|
Cross currency swaps |
|
| — |
|
|
| 61,365 |
|
|
| 202,295 |
|
|
| — |
|
| January 2023 |
|
| — |
|
|
| — |
|
Options |
|
| 27 |
|
|
| 1,270 |
|
|
| 78,285 |
|
|
| — |
|
| Between April 2020 and March 2021 |
|
| — |
|
|
| — |
|
|
|
| 325,252 |
|
|
| 398,175 |
|
|
| 17,443,720 |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
Derivatives held as hedges Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps (CCS) |
|
| 85,349 |
|
|
| — |
|
|
| 1,515,717 |
|
|
| 14,303 |
|
| January 2023 |
| Corporate bonds |
|
| Bonds, notes and other obligations |
| ||
Cross currency swaps (CCS) |
|
| 31,091 |
|
|
| — |
|
|
| 515,550 |
|
|
| 20,320 |
|
| October 2027 |
| Senior bonds |
|
| Bonds, notes and other obligations |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 2,274 |
|
|
| 137,480 |
|
|
| (143 | ) |
| November 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 1,463 |
|
|
| 85,925 |
|
|
| (242 | ) |
| December 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 1,465 |
|
|
| 85,925 |
|
|
| (242 | ) |
| December 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
|
|
| 116,440 |
|
|
| 5,202 |
|
|
| 2,340,597 |
|
|
| 33,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 441,692 |
|
|
| 403,377 |
|
|
| 19,784,317 |
|
|
| 33,996 |
|
|
|
|
|
|
|
|
|
|
|
33
As of December 31, 2019 |
| Assets |
|
| Liabilities |
|
| Notional amount |
|
| Effective part recognized in other comprehensive income during the year |
|
| Maturity |
| Hedged instruments |
|
| Caption of the interim condensed consolidated statement of financial position where the hedged item has been recognized |
| ||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
|
|
|
|
|
|
|
|
|
| ||||
Derivatives held for trading |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
| 95,961 |
|
|
| 45,276 |
|
|
| 9,289,914 |
|
|
| — |
|
| Between January 2020 and January 2021 |
|
| — |
|
|
| — |
|
Interest rate swaps |
|
| 81,517 |
|
|
| 75,071 |
|
|
| 4,238,143 |
|
|
| — |
|
| Between November 2020 and December 2029 |
|
| — |
|
|
| — |
|
Currency swaps |
|
| 30,438 |
|
|
| 36,428 |
|
|
| 1,727,922 |
|
|
| — |
|
| Between January 2020 and September 2026 |
|
| — |
|
|
| — |
|
Cross currency swaps |
|
| — |
|
|
| 50,523 |
|
|
| 195,056 |
|
|
| — |
|
| January 2023 |
|
| — |
|
|
| — |
|
Options |
|
| 33 |
|
|
| 126 |
|
|
| 22,154 |
|
|
| — |
|
| Between January 2020 and December 2020 |
|
| — |
|
|
| — |
|
|
|
| 207,949 |
|
|
| 207,424 |
|
|
| 15,473,189 |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
Derivatives held as hedges Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps (CCS) |
|
| 12,827 |
|
|
| 8,225 |
|
|
| 1,461,474 |
|
|
| (31,211 | ) |
| January 2023 |
| Corporate bonds |
|
| Bonds, notes and other obligations |
| ||
Cross currency swaps (CCS) |
|
| — |
|
|
| 2,821 |
|
|
| 497,100 |
|
|
| (19,694 | ) |
| October 2027 |
| Senior bonds |
|
| Bonds, notes and other obligations |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 1,670 |
|
|
| 132,560 |
|
|
| (285 | ) |
| November 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 1,080 |
|
|
| 82,850 |
|
|
| (289 | ) |
| December 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 1,085 |
|
|
| 82,850 |
|
|
| (287 | ) |
| December 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Cross currency swaps (CCS) (ii) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,097 |
|
| - |
| - |
|
| - |
| ||
|
|
| 12,827 |
|
|
| 14,881 |
|
|
| 2,256,834 |
|
|
| (50,669 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| 220,776 |
|
|
| 222,305 |
|
|
| 17,730,023 |
|
|
| (50,669 | ) |
|
|
|
|
|
|
|
|
|
|
| (i) | As of March 31, 2020 and December 31, 2019, certain derivative financial instruments required the establishment of collateral deposits; see Note 3(d). |
| (ii) | For the designated hedging derivatives mentioned in the table above, changes in fair values of hedging instruments completely offset the changes in fair values of hedged items; therefore, there has been no hedge ineffectiveness in 2020 and 2019. During the year 2019, two hedges were discontinued for a total nominal value of US$20,000,000 because of the early redemption of the senior bonds denominated “5.750% Senior Notes due 2020”. |
| (iii) | Derivatives held for trading are traded mainly to satisfy clients’ needs. The Group may also take positions with the expectation of profiting from favorable movements in prices or rates. Also, this caption includes any derivatives which do not comply with IFRS 9 hedging accounting requirements. |
34
| (a) | This caption is made up as follows: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Saving deposits |
|
| 12,580,551 |
|
|
| 11,384,876 |
|
Time deposits |
|
| 11,608,727 |
|
|
| 13,053,033 |
|
Demand deposits |
|
| 11,587,125 |
|
|
| 11,716,035 |
|
Compensation for service time |
|
| 1,777,722 |
|
|
| 1,933,052 |
|
Other obligations |
|
| 14,770 |
|
|
| 6,228 |
|
Total |
|
| 37,568,895 |
|
|
| 38,093,224 |
|
| (b) | Interest rates applied to deposits and obligations are determined based on the market interest rates. |
| (c) | As of March 31, 2020 and December 31, 2019, approximately S/10,934,868,000 and S/10,725,904,000, respectively, of deposits and obligations are covered by the Peruvian Deposit Insurance Fund. |
9. | Due to banks and correspondents |
| (a) | This caption is comprised of the following: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
By type |
|
|
|
|
|
|
|
|
Banco Central de Reserva del Perú - BCRP |
|
| 2,565,469 |
|
|
| 1,897,568 |
|
Promotional credit lines |
|
| 1,441,100 |
|
|
| 1,422,067 |
|
Loans received from foreign entities |
|
| 1,188,515 |
|
|
| 613,090 |
|
Loans received from Peruvian entities |
|
| 90,164 |
|
|
| 2,049 |
|
|
|
| 5,285,248 |
|
|
| 3,934,774 |
|
Interest and commissions payable |
|
| 49,349 |
|
|
| 44,863 |
|
|
|
| 5,334,597 |
|
|
| 3,979,637 |
|
By term |
|
|
|
|
|
|
|
|
Short term |
|
| 3,514,272 |
|
|
| 2,666,530 |
|
Long term |
|
| 1,820,325 |
|
|
| 1,313,107 |
|
Total |
|
| 5,334,597 |
|
|
| 3,979,637 |
|
| (b) | As of March 31, 2020 and December 31, 2019, some of the Bank loans agreements include standard covenants regarding capital ratios, financial ratios, disposal of assets and transactions among companies under certain conditions, the use of funds and other issues. |
In the opinion of Management and its legal advisors, all covenants have been met by the Group as of March 31, 2020 and December 31, 2019.
35
(a)This caption is comprised of the following:
Issuance |
| Issuer |
| Annual interest rate |
|
| Interest payment |
| Maturity |
|
| Amount issued |
| 31.03.2020 |
|
| 31.12.2019 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (000) |
| S/(000) |
|
| S/(000) |
| ||
Local issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated bonds – first program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third (A series) |
| Interbank |
| 3.5% + VAC (*) |
|
| Semi-annually |
|
| 2023 |
|
| S/ 110,000 |
|
| 91,000 |
|
|
| 91,000 |
| |
Eighth (A series) |
| Interbank |
| 6.91% |
|
| Semi-annually |
| 2022 |
|
| S/ 137,900 |
|
| 137,110 |
|
|
| 136,908 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 228,110 |
|
|
| 227,908 |
|
Subordinated bonds – second program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second (A series) |
| Interbank |
| 5.81% |
|
| Semi-annually |
| 2023 |
|
| S/ 150,000 |
|
| 149,840 |
|
|
| 149,827 |
| ||
Third (A series) |
| Interbank |
| 7.50% |
|
| Semi-annually |
| 2023 |
|
| US$50,000 |
|
| 171,581 |
|
|
| 165,426 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 321,421 |
|
|
| 315,253 |
|
Subordinated bonds – third program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifth (single series) |
| Interseguro |
| 6.00% |
|
| Semi-annually |
|
| 2029 |
|
| US$20,000 |
|
| 68,740 |
|
|
| 66,280 |
| |
Fifth (single series) |
| Interseguro |
| 4.34% |
|
| Semi-annually |
|
| 2029 |
|
| US$20,000 |
|
| 68,740 |
|
|
| 66,280 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 137,480 |
|
|
| 132,560 |
|
Corporate bonds – second program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifth (A series) |
| Interbank |
| 3.41% + VAC (*) |
|
| Semi-annually |
|
| 2029 |
|
| S/ 150,000 |
|
| 150,000 |
|
|
| 150,000 |
| |
Negotiable certificates of deposits – first program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First (A series) |
| Interbank |
| 4.28% |
|
| Annually |
|
| 2020 |
|
| S/ 150,000 |
|
| — |
|
|
| 148,603 |
| |
Total local issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 837,011 |
|
|
| 974,324 |
|
International issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated bonds |
| Interbank |
| 6.63% |
|
| Semi-annually |
| 2029 |
|
| US$300,000 |
|
| 1,027,192 |
|
|
| 990,216 |
| ||
Junior subordinated notes |
| Interbank |
| 8.50% |
|
| Semi-annually |
| 2070 |
|
| US$200,000 |
|
| 686,014 |
|
|
| 660,992 |
| ||
Senior bonds |
| IFS |
| 4.13% |
|
| Semi-annually |
| 2027 |
|
| US$300,000 |
|
| 1,009,382 |
|
|
| 969,794 |
| ||
Corporate bonds |
| Interbank |
| 3.38% |
|
| Semi-annually |
| 2023 |
|
| US$484,895 |
|
| 1,612,654 |
|
|
| 1,549,877 |
| ||
Corporate bonds |
| Interbank |
| 5.00% |
|
| Semi-annually |
| 2026 |
|
| S/ 312,000 |
|
| 311,213 |
|
|
| 311,185 |
| ||
Corporate bonds |
| Interbank |
| 3.25% |
|
| Semi-annually |
| 2026 |
|
| US$400,000 |
|
| 1,362,400 |
|
|
| 1,313,259 |
| ||
Total international issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,008,855 |
|
|
| 5,795,323 |
|
Total local and international issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,845,866 |
|
|
| 6,769,647 |
|
Interest payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 127,511 |
|
|
| 120,643 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,973,377 |
|
|
| 6,890,290 |
|
(*) | The Spanish term “Valor de actualización constante” is referred to amounts in Soles indexed by inflation. |
36
As of March 31, 2020 and December 31, 2019, the international issuances maintain mainly standard clauses for periodic reporting of financial information. In the opinion of Management and its legal advisors, these clauses have been met by the Group as of March 31, 2020 and December 31, 2019.
11. | Insurance contract liabilities |
| (a) | This caption is comprised of the following: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Technical reserves for insurance premiums (b) |
|
| 10,867,081 |
|
|
| 11,135,635 |
|
Technical reserves for claims |
|
| 197,264 |
|
|
| 203,175 |
|
|
|
| 11,064,345 |
|
|
| 11,338,810 |
|
By term |
|
|
|
|
|
|
|
|
Short term |
|
| 965,482 |
|
|
| 948,316 |
|
Long term |
|
| 10,098,863 |
|
|
| 10,390,494 |
|
Total |
|
| 11,064,345 |
|
|
| 11,338,810 |
|
37
| (b) | The movement of technical reserves for insurance premiums (disclosed by type of insurance) for the three-month periods ended March 31, 2020 and 2019, is as follows: |
|
| 2020 |
|
| 2019 |
| ||||||||||||||||||||||||||||||||||
|
| Annuities |
|
| Retirement, disability and survival annuities |
|
| Life insurance |
|
| General insurance |
|
| Total |
|
| Annuities |
|
| Retirement, disability and survival annuities |
|
| Life insurance |
|
| General insurance |
|
| Total |
| ||||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||||
Beginning of period balances |
|
| 9,653,420 |
|
|
| 779,455 |
|
|
| 661,687 |
|
|
| 41,073 |
|
|
| 11,135,635 |
|
|
| 8,665,894 |
|
|
| 715,217 |
|
|
| 586,166 |
|
|
| 39,683 |
|
|
| 10,006,960 |
|
Insurance subscriptions |
|
| 73,447 |
|
|
| — |
|
|
| 505 |
|
|
| 34,697 |
|
|
| 108,649 |
|
|
| 78,343 |
|
|
| — |
|
|
| 548 |
|
|
| 28,792 |
|
|
| 107,683 |
|
Acquisition of Mapfre (*) |
|
| — |
|
|
| — |
|
|
| 292,499 |
|
|
| — |
|
|
| 292,499 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Interest rate effect |
|
| (686,632 | ) |
|
| (51,096 | ) |
|
| (11,890 | ) |
|
| — |
|
|
| (749,618 | ) |
|
| 136,166 |
|
|
| 11,934 |
|
|
| — |
|
|
| — |
|
|
| 148,100 |
|
Time passage adjustments |
|
| (29,620 | ) |
|
| 531 |
|
|
| 5,384 |
|
|
| (24,425 | ) |
|
| (48,130 | ) |
|
| (27,041 | ) |
|
| (1,646 | ) |
|
| 29,533 |
|
|
| (27,459 | ) |
|
| (26,613 | ) |
Maturities and recoveries |
|
| — |
|
|
| — |
|
|
| (12,274 | ) |
|
| — |
|
|
| (12,274 | ) |
|
| — |
|
|
| — |
|
|
| (8,037 | ) |
|
| — |
|
|
| (8,037 | ) |
Exchange differences |
|
| 118,599 |
|
|
| — |
|
|
| 21,614 |
|
|
| 107 |
|
|
| 140,320 |
|
|
| (68,531 | ) |
|
| — |
|
|
| (8,718 | ) |
|
| (9 | ) |
|
| (77,258 | ) |
Balance as of March 31 |
|
| 9,129,214 |
|
|
| 728,890 |
|
|
| 957,525 |
|
|
| 51,452 |
|
|
| 10,867,081 |
|
|
| 8,784,831 |
|
|
| 725,505 |
|
|
| 599,492 |
|
|
| 41,007 |
|
|
| 10,150,835 |
|
Balances as of December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 9,653,420 |
|
|
| 779,455 |
|
|
| 661,687 |
|
|
| 41,073 |
|
|
| 11,135,635 |
|
(*) | In December 2019, the SBS authorized the transfer of a net equity block from Mapfre Peru Vida, which was made effective on January 2, 2020. At said date, Interseguro received cash equivalent to S/59,479,000, financial instruments by S/196,970,000, and recognized the corresponding liabilities for technical reserves. The final value of the portfolio transferred is currently under review by Management of Interseguro and Mapfre. |
| (c) | In Management’s opinion, these balances reflect the exposure of life and general insurance contracts as of March 31, 2020 and December 31, 2019, in accordance with IFRS 4. |
38
| (d) | The main assumptions used in the estimation of retirement, disability and survival annuities and individual life reserves as of March 31, 2020 and December 31, 2019, are the following: |
|
|
|
| Interest rates | ||
Type |
| Mortality table |
| 31.03.2020 |
| 31.12.2019 |
Annuities |
| SPP-S-2017, SPP-I-2017
|
| 5.69% in US$ |
| 4.54% in US$ |
|
| with improvement factor for mortality |
| 2.41% in S/ VAC 5.49% in adjusted S/ |
| 1.89% in S/ VAC 5.10% in adjusted S/ |
Retirement, disability and survival |
| SPP-S-2017, SPP-I-2017 with improvement factor for mortality |
| 2.41% in S/ VAC |
| 1.89% in S/ VAC |
Individual life insurance contracts (included linked insurance contracts) |
| CSO 80 adjusted |
| 4.00 - 5.00% |
| 4.00 - 5.00% |
The sensitivity of the estimates used by the Group to measure its insurance risks is represented primarily by life insurance risks; the main variables as of March 31, 2020 and December 31, 2019 are the interest rates and the mortality tables. The Group has assessed the changes of the reserves related to its most significant life insurance contracts included in the reserves of annuities, retirement, disability and survival of +/- 100 basis points (bps) in the interest rates and of +/- 500 basis points (bps) of the mortality factors, being the results as follows:
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||
|
|
|
|
|
| Variation of the reserve |
|
|
|
|
|
| Variation of the reserve |
| ||||||||||
|
| Reserve |
|
| Amount |
|
| Percentage |
|
| Reserve |
|
| Amount |
|
| Percentage |
| ||||||
Variables |
| S/(000) |
|
| S/(000) |
|
| % |
|
| S/(000) |
|
| S/(000) |
|
| % |
| ||||||
Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio in S/ and US Dollars - Basis amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in interest rate: + 100 bps |
|
| 8,226,559 |
|
|
| (902,655 | ) |
|
| (9.89 | ) |
|
| 8,646,725 |
|
|
| (1,006,695 | ) |
|
| (10.43 | ) |
Changes in interest rate: - 100 bps |
|
| 10,229,001 |
|
|
| 1,099,787 |
|
|
| 12.05 |
|
|
| 10,890,170 |
|
|
| 1,236,750 |
|
|
| 12.81 |
|
Changes in mortality table at 105% |
|
| 9,041,837 |
|
|
| (87,377 | ) |
|
| (0.96 | ) |
|
| 9,554,268 |
|
|
| (99,152 | ) |
|
| (1.03 | ) |
Changes in mortality table at 95% |
|
| 9,220,762 |
|
|
| 91,548 |
|
|
| 1.00 |
|
|
| 9,757,493 |
|
|
| 104,073 |
|
|
| 1.08 |
|
Retirements, disability and survival |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio in S/ – Basis amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in interest rate: + 100 bps |
|
| 646,914 |
|
|
| (81,976 | ) |
|
| (11.25 | ) |
|
| 687,451 |
|
|
| (92,004 | ) |
|
| (11.80 | ) |
Changes in interest rate: - 100 bps |
|
| 830,633 |
|
|
| 101,743 |
|
|
| 13.96 |
|
|
| 894,614 |
|
|
| 115,159 |
|
|
| 14.77 |
|
Changes in mortality table at 105% |
|
| 719,570 |
|
|
| (9,320 | ) |
|
| (1.28 | ) |
|
| 769,044 |
|
|
| (10,411 | ) |
|
| (1.34 | ) |
Changes in mortality table at 95% |
|
| 738,677 |
|
|
| 9,787 |
|
|
| 1.34 |
|
|
| 790,403 |
|
|
| 10,948 |
|
|
| 1.40 |
|
39
| (a) | Capital stock and distribution of dividends - |
IFS���s shares are listed on the Lima Stock Exchange and, since July 2019, they are listed on the New York Stock Exchange. IFS’s shares have no nominal value and their issuance value was US$9.72 per share. As of March 31, 2020 and December 31, 2019, IFS’s capital stock is represented by 115,447,705 subscribed and paid-in common shares.
The General Shareholders’ Meeting of IFS held on April 1, 2019, agreed to distribute dividends for the year 2018 for approximately US$197,187,000 (equivalent to approximately S/654,464,000), US$1.75 per share, which were paid on May 3, 2019.
(b)Treasury stock -
As of March 31, 2020 and December 31, 2019, Interfondos, an indirect Subsidiary of IFS through Inteligo Group Corp., holds 2,600 and 1,400 shares issued by IFS, respectively, with an acquisition cost equivalent to S/293,000 and S/196,000, respectively.
Sale of treasury stock (2019)
As indicated in Note 1(b), in July 2019, Interbank and IFS sold a combined 2,418,754 shares. Said sale was recorded by decreasing the caption “Treasury stock” for an amount of S/208,178,000, and the highest value collected due to said sale amounted to S/138,997,000 and was recorded in the caption “Retained earnings”.
(c) Capital surplus -
Corresponds to the difference between the nominal value of the shares issued and their public offerings price, which were performed in 2007 and 2019; see Note 1(c). Capital surplus is presented net of the expenses incurred and related to the issuance of such shares.
| (d) | Shareholders’ equity for legal purposes (regulatory capital) - |
IFS is not required to establish a regulatory capital for statutory purposes. As of March 31, 2020 and December 31, 2019, the regulatory capital required for Interbank, Interseguro and Inteligo Bank (a Subsidiary of Inteligo Group Corp.), is calculated based on the separate financial statements of each Subsidiary prepared following the accounting principles and practices stated by their regulators (the SBS or Central Bank of the Bahamas).
13. | Tax situation |
| (a) | IFS and its Subsidiaries incorporated and domiciled in the Republic of Panama and the Commonwealth of the Bahamas, are not subject to Income Tax, or any other taxes on capital gains, equity or property; nevertheless, IFS is subject to an additional tax on dividends received from its Subsidiaries incorporated and domiciled in Peru; see paragraph (b). The Subsidiaries incorporated and domiciled in Peru are subject to the Peruvian Tax legislation; see paragraph (c). |
| (b) | Legal entities or individuals not domiciled in Peru are subject to an additional tax (equivalent to 5 percent) on dividends received from entities domiciled in Peru. The corresponding tax is withheld by the entity that distributes the dividends. In this regard, since IFS controls the entities that distribute the dividends, it recognizes the amount of the additional Income Tax as expense of the financial year of the dividends. |
| (c) | IFS’s Subsidiaries incorporated in Peru are subject to the payment of Peruvian taxes; hence, they must calculate their tax expenses on the basis of their separate financial statements. The Income Tax rate as of March 31, 2020 and December 31, 2019, was 29.5 percent, over the taxable income. |
40
| Tax and the Value-Added-Tax returns subject to inspection by the Tax Authority in each of the Subsidiaries, are the following: |
- Interbank: Income Tax returns for the years 2014 to 2019, and Value-Added-Tax returns for the years 2015 to 2019.
| - | Interseguro: Income Tax returns for the years 2014, 2015, 2017, 2018 and 2019, and Value-Added-Tax returns for the years 2014 to 2019. |
| - | Hipotecaria Sura and Seguros Sura: Income Tax returns for the years 2014 to 2019, and Value-Added-Tax returns for the years 2014 to 2019. |
Given the possible interpretations that SUNAT may give to the legislation in effect, up to date it is not possible to determine whether or not any review to be conducted would result in liabilities for the Subsidiaries; any increased tax or surcharge that could arise from possible tax audits would be applied to the results of the period in which such tax increase or surcharge may be determined.
Following is the detail of the ongoing tax procedures for the Subsidiaries:
Interbank:
In April 2004, June 2006, February 2007, June 2007, November 2007, October 2008 and December 2010, Interbank received a number of Tax Determination and Tax Penalty notices corresponding mainly to the Income Tax determination for the fiscal years 2000 to 2006. As a result, claims and appeals were filed and subsequent contentious administrative proceedings were started, with the exception of Income Tax 2006, which is still pending in the Tax Court.
Regarding the tax litigations followed by Interbank related to the annual Income Tax returns for the years 2000 to 2006, the most relevant matter subject to discrepancy with SUNAT corresponds to whether the “interest in suspense” are subject to Income Tax or not. In this sense, the Bank considers that the interest in suspense do not constitute accrued income, in accordance with the SBS’s regulations, which is also supported by a ruling by the Permanent Constitutional and Social Law Chamber of the Supreme Court issued in August 2009.
Notwithstanding the foregoing, in February 2018, the Third Transitory Chamber of Constitutional and Social Law of the Supreme Court issued a ruling regarding a third bank that impacted the original estimation regarding the degree of contingency for this discrepancy. Subsequently, in June 2019, the Permanent Chamber of Constitutional and Social Law of the Supreme Court, in a case followed with another financial entity, ruled in favor of the tax treatment over the interest in suspense followed by said entity; which is consistent with the tax treatment followed by Interbank. Lastly, on March 12, 2020, the Permanent Chamber of Constitutional and Social Law of the Supreme Court published on the website of the Judiciary its ruling regarding Interbank’s Income Tax for the year 2003, declaring groundless the cassation appeals filed by SUNAT and the Ministry of Economy and Finance (“MEF”, by its Spanish acronym), thus reaffirming the position held by the Bank regarding that interest in suspense does not constitute taxable income.
From the tax and legal analysis performed, reinforced by the aforementioned recent ruling by the Permanent Chamber of Constitutional and Social Law of the Supreme Court, Interbank’s Management and its external legal advisors consider that it exists sufficient technical support for the prevalence of Interbank’s position, in relation with the tax periods under resolution process; thus, it has not been recorded any provision for this contingency as of March 31, 2020 and December 31, 2019.
The tax liability requested for this concept and other minor contingencies as of March 31, 2020, without considering the effects of the ruling by the Permanent Chamber of Constitutional and Social Law of the Supreme Court published on March 12, 2020, amounted to approximately S/307,000,000, out of which S/34,000,000 corresponded to taxes and the difference to fines and interest arrears (as of December 31, 2019 amounted to approximately S/303,000,000, out of which S/34,000,000 corresponded to taxes and the difference to fines and interest arrears); however, it is estimated that once SUNAT performs the resettlements of the Income Tax, including the effects of said ruling, the requested amount will diminish significantly.
On the other hand, on February 3, 2017, SUNAT closed the audit process corresponding to the Income Tax for the year 2010. The Bank paid the debt under protest and filed a claim procedure. Subsequently, on November 6, 2018, SUNAT closed again the audit process corresponding to the Income Tax 2010, which had been reopened due to invalidity;
41
Interbank filed a claim procedure and afterwards a tax appeal. Currently, the appeal is pending resolution by the Tax Court.
On February 14, 2018, SUNAT notified Interbank of the beginning of the partial audit process for the third category Income Tax corresponding to the year 2014. Subsequently, on September 7, 2018, SUNAT closed said partial audit process and did not determine any additional settlement of said tax.
On January 14, 2019, Interbank was notified of the Determination and Penalty Resolutions corresponding to the audit of the Income Tax for the fiscal year 2013. As of March 31, 2020 and December 31, 2019, the tax debt requested by SUNAT amounts to approximately S/51,000,000 and S/50,000,000, respectively (including taxes, penalties and moratorium interest). The main concept observed was the deduction of loan write-offs without proof by the SBS.
To date, Interbank’s Management has submitted the respective complaints to the resolutions indicated above. In the opinion of Management and its legal advisors, any eventual additional tax would not be significant for the financial statements as of March 31, 2020 and December 31, 2019.
On April 26, 2019, SUNAT notified Interbank about the commencement of the definitive audit process on Income Tax withholdings of non-domiciled entities corresponding to the year 2018. To date, said audit is under process.
On September 11, 2019, SUNAT notified Interbank about the commencement of the definitive audit process on the Income Tax corresponding to the year 2014. To date, said audit is under process.
On December 12, 2019, SUNAT notified Interbank about the commencement of the definitive audit process on the Income Tax corresponding to the year 2015. To date, said audit is under process.
Lastly, to date, SUNAT is auditing Interbank’s 2012 taxable period. In the opinion of Management and its legal advisors, any eventual additional tax settlement would not be significant for the financial statements as of March 31, 2020 and December 31, 2019.
Interseguro:
On January 4, 2019, Interseguro was notified through a Tax Determination notice about the partial audit of the Income Tax for non-domiciled entities for Sura corresponding to January 2015. The tax debt requested by SUNAT amounts to approximately S/19,000,000. On January 30, 2019, the Company filed an appeal against the Resolution of Determination claimed by SUNAT. Considering that this debt corresponds to a period prior to the acquisition of Seguros Sura by the Group and according to the conditions of the purchase and sale agreement of this entity, this debt, if confirmed after the legal actions that Management is to file, would be assumed by the sellers.
In the opinion of Management and its legal advisors, any eventual additional tax settlement would not be significant for the financial statements as of March 31, 2020 and December 31, 2019.
| (e) | IFS’s Subsidiaries calculate the period’s Income Tax expense using the best estimate of the weighted average tax rate. The table below presents the amounts reported in the interim condensed consolidated statements of income: |
|
| For the three-month periods ended March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Current – Expense |
|
| 112,470 |
|
|
| 115,469 |
|
Deferred – Expense |
|
| (36,629 | ) |
|
| (5,579 | ) |
|
|
| 75,841 |
|
|
| 109,890 |
|
42
| (a) | This caption is comprised of the following: |
|
| For the three-month periods ended March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Interest and similar income |
|
|
|
|
|
|
|
|
Interest on loan portfolio |
|
| 986,668 |
|
|
| 905,215 |
|
Interest on investments at fair value through other comprehensive income |
|
| 193,427 |
|
|
| 194,159 |
|
Interest on investments at amortized cost |
|
| 26,226 |
|
|
| 21,961 |
|
Dividends on financial instruments |
|
| 20,832 |
|
|
| 17,113 |
|
Interest on due from banks and inter-bank funds |
|
| 19,903 |
|
|
| 27,289 |
|
Other interest and similar income |
|
| 1,154 |
|
|
| 1,003 |
|
Total |
|
| 1,248,210 |
|
|
| 1,166,740 |
|
Interest and similar expenses |
|
|
|
|
|
|
|
|
Interest and fees on deposits and obligations |
|
| (173,753 | ) |
|
| (178,154 | ) |
Interest on bonds, notes and other obligations |
|
| (97,827 | ) |
|
| (99,639 | ) |
Interest and fees on obligations with financial institutions |
|
| (41,304 | ) |
|
| (42,373 | ) |
Deposit insurance fund fees |
|
| (12,213 | ) |
|
| (10,900 | ) |
Interest on lease payments |
|
| (4,640 | ) |
|
| (765 | ) |
Result from hedging transactions |
|
| (2,304 | ) |
|
| (2,502 | ) |
Other interest and similar expenses |
|
| (7,429 | ) |
|
| (8,160 | ) |
Total |
|
| (339,470 | ) |
|
| (342,493 | ) |
15. | Fee income from financial services, net |
| (a) | This caption is comprised of the following: |
|
| For the three-month periods ended March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Income |
|
|
|
|
|
|
|
|
Accounts maintenance, carriage, transfers, and debit and credit card fees |
|
| 147,659 |
|
|
| 155,391 |
|
Banking services fees |
|
| 63,311 |
|
|
| 51,951 |
|
Funds management |
|
| 37,405 |
|
|
| 35,116 |
|
Contingent loans fees |
|
| 12,932 |
|
|
| 13,797 |
|
Collection services |
|
| 9,908 |
|
|
| 9,786 |
|
Brokerage and custody services |
|
| 2,394 |
|
|
| 2,092 |
|
Others |
|
| 11,051 |
|
|
| 8,944 |
|
Total |
|
| 284,660 |
|
|
| 277,077 |
|
Expenses |
|
|
|
|
|
|
|
|
Credit cards |
|
| (30,828 | ) |
|
| (24,385 | ) |
Debtor’s life insurance premiums |
|
| (14,494 | ) |
|
| (10,533 | ) |
Foreign banks fees |
|
| (3,234 | ) |
|
| (3,671 | ) |
Brokerage and custody services |
|
| (159 | ) |
|
| (172 | ) |
Others |
|
| (15,637 | ) |
|
| (15,318 | ) |
Total |
|
| (64,352 | ) |
|
| (54,079 | ) |
Net |
|
| 220,308 |
|
|
| 222,998 |
|
43
| (a) | This caption is comprised of the following: |
|
| For the three-month periods ended March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Other income |
|
|
|
|
|
|
|
|
Income from investments in associates |
|
| 5,142 |
|
|
| 5,736 |
|
Other technical income from insurance operations |
|
| 1,902 |
|
|
| 3,129 |
|
Income from ATM rentals |
|
| 1,089 |
|
|
| 1,419 |
|
Services rendered to third parties |
|
| 640 |
|
|
| 995 |
|
Other income |
|
| 3,144 |
|
|
| 7,451 |
|
Total other income |
|
| 11,917 |
|
|
| 18,730 |
|
Other expenses |
|
|
|
|
|
|
|
|
Commissions from insurance activities |
|
| (16,972 | ) |
|
| (13,412 | ) |
Sundry technical insurance expenses |
|
| (4,999 | ) |
|
| (10,359 | ) |
Provision for sundry risk |
|
| (2,382 | ) |
|
| (3,190 | ) |
Expenses related to rental income |
|
| (1,404 | ) |
|
| (1,544 | ) |
Donations |
|
| (1,076 | ) |
|
| (1,291 | ) |
Other expenses |
|
| (14,250 | ) |
|
| (16,922 | ) |
Total other expenses |
|
| (41,083 | ) |
|
| (46,718 | ) |
17. | Net premiums earned |
This caption is comprised of the following:
|
| Premiums assumed |
|
| Adjustment of technical reserves |
|
| Gross premiums earned (*) |
|
| Premiums ceded to reinsurers |
|
| Net premiums earned (incurred) |
| |||||||||||||||||||||||||
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.03.2020 |
|
| 31.03.2019 |
|
| 31.03.2020 |
|
| 31.03.2019 |
| ||||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||||
Life insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuities |
|
| 71,061 |
|
|
| 78,324 |
|
|
| (43,833 | ) |
|
| (56,590 | ) |
|
| 27,228 |
|
|
| 21,734 |
|
|
| — |
|
|
| — |
|
|
| 27,228 |
|
|
| 21,734 |
|
Group life |
|
| 37,980 |
|
|
| 33,083 |
|
|
| 225 |
|
|
| (85 | ) |
|
| 38,205 |
|
|
| 32,998 |
|
|
| (1,151 | ) |
|
| (1,275 | ) |
|
| 37,054 |
|
|
| 31,723 |
|
Individual life |
|
| 33,682 |
|
|
| 33,297 |
|
|
| 7,161 |
|
|
| (21,939 | ) |
|
| 40,843 |
|
|
| 11,358 |
|
|
| (1,096 | ) |
|
| (1,155 | ) |
|
| 39,747 |
|
|
| 10,203 |
|
Retirement, disability and survival |
|
| 1,974 |
|
|
| 4,980 |
|
|
| (531 | ) |
|
| 6,934 |
|
|
| 1,443 |
|
|
| 11,914 |
|
|
| (121 | ) |
|
| (1,700 | ) |
|
| 1,322 |
|
|
| 10,214 |
|
Others |
|
| 1 |
|
|
| — |
|
|
| (1,008 | ) |
|
| (68 | ) |
|
| (1,007 | ) |
|
| (68 | ) |
|
| — |
|
|
| — |
|
|
| (1,007 | ) |
|
| (68 | ) |
Total life insurance |
|
| 144,698 |
|
|
| 149,684 |
|
|
| (37,986 | ) |
|
| (71,748 | ) |
|
| 106,712 |
|
|
| 77,936 |
|
|
| (2,368 | ) |
|
| (4,130 | ) |
|
| 104,344 |
|
|
| 73,806 |
|
Total general insurance |
|
| 30,610 |
|
|
| 25,776 |
|
|
| (10,431 | ) |
|
| (1,548 | ) |
|
| 20,179 |
|
|
| 24,228 |
|
|
| (84 | ) |
|
| (108 | ) |
|
| 20,095 |
|
|
| 24,120 |
|
Total general |
|
| 175,308 |
|
|
| 175,460 |
|
|
| (48,417 | ) |
|
| (73,296 | ) |
|
| 126,891 |
|
|
| 102,164 |
|
|
| (2,452 | ) |
|
| (4,238 | ) |
|
| 124,439 |
|
|
| 97,926 |
|
(*) | It includes the annual variation of technical reserves and unearned premiums. |
44
The following table presents the calculation of the weighted average number of shares and the basic and diluted earnings per share, determined and calculated based on the earnings attributable to the Group:
|
| Outstanding shares |
|
| Shares considered in computation |
|
| Effective days in the period |
|
| Weighted average number of shares |
| ||||
|
| (in thousands) |
|
| (in thousands) |
|
|
|
|
|
| (in thousands) |
| |||
Period 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2019 |
|
| 110,692 |
|
|
| 110,692 |
|
|
| 90 |
|
|
| 110,692 |
|
Balance as of March 31, 2019 |
|
| 110,692 |
|
|
| 110,692 |
|
|
|
|
|
|
| 110,692 |
|
Net earnings attributable to IFS S/(000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 350,568 |
|
Earnings per share attributable to IFS’s shareholders (Soles) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3.167 |
|
Period 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2020 |
|
| 115,446 |
|
|
| 115,446 |
|
|
| 90 |
|
|
| 115,446 |
|
Sale of treasury stock |
|
| 1 |
|
|
| 1 |
|
|
| 53 |
|
|
| 0 |
|
Purchase of treasury stock |
|
| (3 | ) |
|
| (3 | ) |
|
| 18 |
|
|
| (0 | ) |
Balance as of March 31, 2020 |
|
| 115,444 |
|
|
| 115,444 |
|
|
|
|
|
|
| 115,446 |
|
Net earnings attributable to IFS S/(000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 143,375 |
|
Earnings per share attributable to IFS’s shareholders (Soles) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1.242 |
|
45
| (a) | The table below presents the main transactions with shareholders, related parties and affiliated companies as of March 31, 2020 and December 31, 2019: |
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Assets |
|
|
|
|
|
|
|
|
Investments at fair value through profit or loss |
|
|
|
|
|
|
|
|
Participations - Royalty Pharma |
|
| 127,903 |
|
|
| 117,682 |
|
Others |
|
| 244 |
|
|
| 270 |
|
Negotiable certificates of deposit – Financiera Oh! S.A. |
|
| — |
|
|
| 9,372 |
|
|
|
| 128,147 |
|
|
| 127,324 |
|
Investments at fair value through other comprehensive income |
|
|
|
|
|
|
|
|
Shares - InRetail Perú Corp. |
|
| 256,583 |
|
|
| 285,962 |
|
Corporate bonds - InRetail Shopping Malls S.A. |
|
| 41,688 |
|
|
| 49,728 |
|
Corporate bonds - Colegios Peruanos S.A. |
|
| 25,022 |
|
|
| 30,977 |
|
|
|
| 323,293 |
|
|
| 366,667 |
|
Loans, net (b) |
|
| 1,208,100 |
|
|
| 1,114,211 |
|
Accounts receivable (h) |
|
| 77,824 |
|
|
| 77,824 |
|
Long-term accounts receivable (g) |
|
| 39,141 |
|
|
| 39,141 |
|
Accounts receivable related to derivative financial instruments |
|
| 2,723 |
|
|
| 817 |
|
Other assets (f) |
|
| 11,130 |
|
|
| 11,928 |
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 672,499 |
|
|
| 944,561 |
|
Other liabilities |
|
| 203 |
|
|
| 56 |
|
Accounts payable related to derivative financial instruments |
|
| — |
|
|
| 344 |
|
Off-balance sheet accounts |
|
|
|
|
|
|
|
|
Indirect loans (b) |
|
| 100,957 |
|
|
| 134,658 |
|
|
|
|
|
|
|
|
|
|
|
| For the three-month periods ended March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Income (expenses) |
|
|
|
|
|
|
|
|
Interest and similar income |
|
| 17,883 |
|
|
| 21,947 |
|
Interest and similar expenses |
|
| (4,846 | ) |
|
| (4,599 | ) |
Valuation of financial derivative instruments |
|
| 2,250 |
|
|
| 7 |
|
Rental income |
|
| 1,240 |
|
|
| 1,198 |
|
Administrative expenses |
|
| (14,844 | ) |
|
| (17,205 | ) |
Others, net |
|
| 12,941 |
|
|
| 10,424 |
|
| (b) | As of March 31, 2020 and December 31, 2019, the detail of loans is the following: |
|
|
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||
|
| Direct |
|
| Indirect |
|
| Total |
|
| Direct |
|
| Indirect |
|
| Total |
| ||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||
Controlling |
|
| 15 |
|
|
| — |
|
|
| 15 |
|
|
| 17 |
|
|
| — |
|
|
| 17 |
|
Affiliated |
|
| 939,263 |
|
|
| 51,507 |
|
|
| 990,770 |
|
|
| 847,993 |
|
|
| 59,267 |
|
|
| 907,260 |
|
Associates |
|
| 268,822 |
|
|
| 49,450 |
|
|
| 318,272 |
|
|
| 266,201 |
|
|
| 75,391 |
|
|
| 341,592 |
|
|
|
| 1,208,100 |
|
|
| 100,957 |
|
|
| 1,309,057 |
|
|
| 1,114,211 |
|
|
| 134,658 |
|
|
| 1,248,869 |
|
46
| (c) | As of March 31, 2020 and December 31, 2019, the directors, executives and employees of the Group have been involved, directly and indirectly, in credit transactions with certain subsidiaries of the Group, as permitted by Peruvian law, which regulates and limits on certain transactions with employees, directors and officers of financial entities. As of March 31, 2020 and December 31, 2019, direct loans to employees, directors and officers amounted to S/212,215,000 and S/231,546,000, respectively; said loans are repaid monthly and bear interest at market rates. |
There are no loans to the Group’s directors and key personnel guaranteed with shares of any Subsidiary.
| (d) | The Group’s key personnel basic remuneration for the three-month periods ended March 31, 2020 and 2019, are presented below: |
|
| For the three-month periods ended March 31, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Salaries |
|
| 9,794 |
|
|
| 8,056 |
|
Board of Directors’ compensations |
|
| 957 |
|
|
| 367 |
|
Total |
|
| 10,751 |
|
|
| 8,423 |
|
| (e) | As of March 31, 2020 and December 31, 2019, the Group holds participations in different mutual funds managed by Interfondos that are classified as investment at fair value through profit or loss and amount to S/4,333,000 and S/701,000, respectively. |
| (f) | It corresponds mainly to prepaid expenses for spaces ceded to Interbank in the stores of Supermercados Peruanos S.A. for the operation of financial agencies until the year 2030, and for an amount of approximately S/6,874,000 and S/6,628,000 as of March 31, 2020 and December 31, 2019, respectively (see Note 7(a)). Interbank may renew the term of the agreement for an additional term of 15 years. |
| (g) | It corresponds to a loan with maturity in 2046 and bears interests at market rates. |
| (h) | As of March 31, 2020 and December 31, 2019, corresponds to a financial lease for the construction of educational facilities in San Juan de Lurigancho and Ate Vitarte districts. |
| (i) | In Management’s opinion, transactions with related companies have been performed under market conditions and within the limits permitted by the SBS. Taxes generated by these transactions and the taxable base used for computing them are those customarily used in the industry and they are determined according to the tax rules in force. |
20. | Business segments |
The Chief Operating Decision Maker (“CODM”) of IFS is the Chief Executive Officer (“CEO”). The Group presents three operating segments based on products and services, as follows:
Banking
Mainly loans, credit facilities, deposits and current accounts.
Insurance
It provides annuities and conventional life insurance products, as well as other retail insurance products.
Wealth management
It provides brokerage and investment management services. Inteligo serves mainly Peruvian citizens.
The operating segments monitor the operating results of their business units separately for the purpose of making decisions on the distribution of resources and performance assessment. Segment performance is evaluated based on operating profit or loss and it is measured consistently with operating profit or loss in the consolidated financial statements.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
No revenue from transactions with a single external customer or counterparty exceeded 10 percent of the Group’s total revenues for the periods as of March 31, 2020 and 2019.
47
The following table presents the Group’s financial information by business segments for the quarters ended March 31, 2020 and 2019:
|
| 2020 |
|
| 2019 |
| ||||||||||||||||||||||||||||||||||
|
| Banking |
|
| Insurance |
|
| Wealth management |
|
| Holding and consolidation adjustments |
|
| Total consolidated |
|
| Banking |
|
| Insurance |
|
| Wealth management |
|
| Holding and consolidation adjustments |
|
| Total consolidated |
| ||||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||||
Total income (*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third party |
|
| 1,337,229 |
|
|
| 308,625 |
|
|
| (1,702 | ) |
|
| (11,882 | ) |
|
| 1,632,270 |
|
|
| 1,291,408 |
|
|
| 278,556 |
|
|
| 121,325 |
|
|
| (64,737 | ) |
|
| 1,626,552 |
|
Inter-segment |
|
| (14,286 | ) |
|
| — |
|
|
| 4,036 |
|
|
| 10,250 |
|
|
| — |
|
|
| (10,557 | ) |
|
| — |
|
|
| (227 | ) |
|
| 10,784 |
|
|
| — |
|
Total income |
|
| 1,322,943 |
|
|
| 308,625 |
|
|
| 2,334 |
|
|
| (1,632 | ) |
|
| 1,632,270 |
|
|
| 1,280,851 |
|
|
| 278,556 |
|
|
| 121,098 |
|
|
| (53,953 | ) |
|
| 1,626,552 |
|
Consolidated income statement data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and similar income |
|
| 1,037,127 |
|
|
| 167,949 |
|
|
| 41,091 |
|
|
| 2,043 |
|
|
| 1,248,210 |
|
|
| 964,986 |
|
|
| 156,801 |
|
|
| 45,586 |
|
|
| (633 | ) |
|
| 1,166,740 |
|
Interest and similar expenses |
|
| (302,831 | ) |
|
| (21,210 | ) |
|
| (15,544 | ) |
|
| 115 |
|
|
| (339,470 | ) |
|
| (307,418 | ) |
|
| (20,348 | ) |
|
| (14,860 | ) |
|
| 133 |
|
|
| (342,493 | ) |
Net interest and similar income |
|
| 734,296 |
|
|
| 146,739 |
|
|
| 25,547 |
|
|
| 2,158 |
|
|
| 908,740 |
|
|
| 657,568 |
|
|
| 136,453 |
|
|
| 30,726 |
|
|
| (500 | ) |
|
| 824,247 |
|
Impairment loss on loans, net of recoveries |
|
| (312,611 | ) |
|
| — |
|
|
| (7 | ) |
|
| — |
|
|
| (312,618 | ) |
|
| (186,342 | ) |
|
| — |
|
|
| (72 | ) |
|
| — |
|
|
| (186,414 | ) |
(Loss) recovery due to impairment on financial investments |
|
| (196 | ) |
|
| (40,135 | ) |
|
| (191 | ) |
|
| — |
|
|
| (40,522 | ) |
|
| (2 | ) |
|
| 2,361 |
|
|
| (472 | ) |
|
| — |
|
|
| 1,887 |
|
Net interest and similar income after impairment loss |
|
| 421,489 |
|
|
| 106,604 |
|
|
| 25,349 |
|
|
| 2,158 |
|
|
| 555,600 |
|
|
| 471,224 |
|
|
| 138,814 |
|
|
| 30,182 |
|
|
| (500 | ) |
|
| 639,720 |
|
Fee income from financial services, net |
|
| 190,361 |
|
|
| (1,027 | ) |
|
| 43,013 |
|
|
| (12,039 | ) |
|
| 220,308 |
|
|
| 193,361 |
|
|
| (999 | ) |
|
| 38,914 |
|
|
| (8,278 | ) |
|
| 222,998 |
|
Net gain on sale of financial investments |
|
| 37,467 |
|
|
| 23,937 |
|
|
| (33,116 | ) |
|
| — |
|
|
| 28,288 |
|
|
| 9,071 |
|
|
| (6,169 | ) |
|
| 24,543 |
|
|
| — |
|
|
| 27,445 |
|
Gain from derecognition of financial assets at amortized cost |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,472 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,472 |
|
Other income (**) |
|
| 72,274 |
|
|
| (6,673 | ) |
|
| (52,690 | ) |
|
| (1,886 | ) |
|
| 11,025 |
|
|
| 121,518 |
|
|
| 30,997 |
|
|
| 12,282 |
|
|
| (55,826 | ) |
|
| 108,971 |
|
Total net premiums earned minus claims and benefits |
|
| — |
|
|
| (59,413 | ) |
|
| — |
|
|
| — |
|
|
| (59,413 | ) |
|
| — |
|
|
| (67,366 | ) |
|
| — |
|
|
| — |
|
|
| (67,366 | ) |
Depreciation and amortization |
|
| (57,445 | ) |
|
| (6,378 | ) |
|
| (3,986 | ) |
|
| 1,446 |
|
|
| (66,363 | ) |
|
| (55,399 | ) |
|
| (5,031 | ) |
|
| (2,474 | ) |
|
| — |
|
|
| (62,904 | ) |
Other expenses |
|
| (358,308 | ) |
|
| (66,041 | ) |
|
| (30,885 | ) |
|
| 10,391 |
|
|
| (444,843 | ) |
|
| (335,392 | ) |
|
| (65,657 | ) |
|
| (24,420 | ) |
|
| 6,657 |
|
|
| (418,812 | ) |
Income before translation result and Income Tax |
|
| 305,838 |
|
|
| (8,991 | ) |
|
| (52,315 | ) |
|
| 70 |
|
|
| 244,602 |
|
|
| 406,855 |
|
|
| 24,589 |
|
|
| 79,027 |
|
|
| (57,947 | ) |
|
| 452,524 |
|
Translation result |
|
| (2,904 | ) |
|
| (12,583 | ) |
|
| (3,008 | ) |
|
| (5,361 | ) |
|
| (23,856 | ) |
|
| 233 |
|
|
| 4,353 |
|
|
| 683 |
|
|
| 4,822 |
|
|
| 10,091 |
|
Income Tax |
|
| (81,434 | ) |
|
| — |
|
|
| 666 |
|
|
| 4,927 |
|
|
| (75,841 | ) |
|
| (107,386 | ) |
|
| — |
|
|
| (1,408 | ) |
|
| (1,096 | ) |
|
| (109,890 | ) |
Net profit for the period |
|
| 221,500 |
|
|
| (21,574 | ) |
|
| (54,657 | ) |
|
| (364 | ) |
|
| 144,905 |
|
|
| 299,702 |
|
|
| 28,942 |
|
|
| 78,302 |
|
|
| (54,221 | ) |
|
| 352,725 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFS’s shareholders |
|
| 221,500 |
|
|
| (21,574 | ) |
|
| (54,657 | ) |
|
| (1,894 | ) |
|
| 143,375 |
|
|
| 299,702 |
|
|
| 28,942 |
|
|
| 78,302 |
|
|
| (56,378 | ) |
|
| 350,568 |
|
Non-controlling interest |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,530 |
|
|
| 1,530 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,157 |
|
|
| 2,157 |
|
|
|
| 221,500 |
|
|
| (21,574 | ) |
|
| (54,657 | ) |
|
| (364 | ) |
|
| 144,905 |
|
|
| 299,702 |
|
|
| 28,942 |
|
|
| 78,302 |
|
|
| (54,221 | ) |
|
| 352,725 |
|
(*) | Corresponds to interest and similar income, other income and net premiums earned. |
(**) | For the Banking Segment, the caption “Other income” for the three-month period ended March 31, 2019, includes approximately S/52,580,000, before taxes, as gain on the sale of Interfondos to Inteligo Perú Holding S.A.C., which is eliminated in the accounting consolidation process, see Note 2.2. The net profit (after taxes) amounted to approximately S/32,422,000. |
48
|
| 31.03.2020 |
| |||||||||||||||||
|
| Banking |
|
| Insurance |
|
| Wealth management |
|
| Holding and consolidation adjustments |
|
| Total consolidated |
| |||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||
Capital expenditures (*) |
|
| 37,078 |
|
|
| 48,183 |
|
|
| 2,930 |
|
|
| — |
|
|
| 88,191 |
|
Total assets |
|
| 53,933,585 |
|
|
| 13,396,359 |
|
|
| 3,970,425 |
|
|
| 511,204 |
|
|
| 71,811,573 |
|
Total liabilities |
|
| 47,433,498 |
|
|
| 13,052,208 |
|
|
| 3,210,757 |
|
|
| (431,157 | ) |
|
| 63,265,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31.12.2019 |
| |||||||||||||||||
|
| Banking |
|
| Insurance |
|
| Wealth management |
|
| Holding and consolidation adjustments |
|
| Total consolidated |
| |||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||
Capital expenditures (*) |
|
| 195,177 |
|
|
| 69,643 |
|
|
| 6,769 |
|
|
| — |
|
|
| 271,589 |
|
Total assets |
|
| 53,019,361 |
|
|
| 13,917,641 |
|
|
| 4,098,057 |
|
|
| 527,234 |
|
|
| 71,562,293 |
|
Total liabilities |
|
| 46,676,473 |
|
|
| 12,943,718 |
|
|
| 3,244,210 |
|
|
| (205,556 | ) |
|
| 62,658,845 |
|
(*) | It includes the purchase of property, furniture and equipment, intangible assets and investment properties. |
(i) | The distribution of the Group’s total income based on the location of the customer and its assets, for the quarters ended March 31, 2020, is S/1,644,332,000 in Peru and S/12,062,000 in Panama (for the three-month period ended March 31, 2019, is S/1,519,064,000 in Peru and S/107,488,000 in Panama). The distribution of the Group’s total assets based on the location of the customer and its assets, as of March 31, 2020 is S/68,012,179,000 in Peru and S/3,799,394,000 in Panama (for the year ended December 31, 2019, it is S/67,623,222,000 in Peru and S/3,939,071,000 in Panama). |
49
The financial assets and liabilities of the consolidated statement of financial position as of March 31, 2020 and December 31, 2019, are presented below:
|
| As of March 31, 2020 |
|
| As of December 31, 2019 |
| ||||||||||||||||||||||||||||||||||
|
| At fair value through profit or loss |
|
| Debt instruments measured at fair value through other comprehensive income |
|
| Equity instruments measured at fair value through other comprehensive income |
|
| Amortized cost |
|
| Total |
|
| At fair value through profit or loss |
|
| Debt instruments measured at fair value through other comprehensive income |
|
| Equity instruments measured at fair value through other comprehensive income |
|
| Amortized cost |
|
| Total |
| ||||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||||
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,583,271 |
|
|
| 11,583,271 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,128,875 |
|
|
| 11,128,875 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 150,005 |
|
|
| 150,005 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 85,006 |
|
|
| 85,006 |
|
Financial investments |
|
| 1,393,938 |
|
|
| 13,966,404 |
|
|
| 998,702 |
|
|
| 2,275,889 |
|
|
| 18,634,933 |
|
|
| 1,551,537 |
|
|
| 14,188,473 |
|
|
| 1,125,722 |
|
|
| 2,206,986 |
|
|
| 19,072,718 |
|
Loans, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 37,062,052 |
|
|
| 37,062,052 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 37,136,853 |
|
|
| 37,136,853 |
|
Due from customers on acceptances |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 32,068 |
|
|
| 32,068 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 139,685 |
|
|
| 139,685 |
|
Others accounts receivable and other assets, net |
|
| 441,692 |
|
|
| — |
|
|
| — |
|
|
| 673,226 |
|
|
| 1,114,918 |
|
|
| 220,776 |
|
|
| — |
|
|
| — |
|
|
| 630,430 |
|
|
| 851,206 |
|
|
|
| 1,835,630 |
|
|
| 13,966,404 |
|
|
| 998,702 |
|
|
| 51,776,511 |
|
|
| 68,577,247 |
|
|
| 1,772,313 |
|
|
| 14,188,473 |
|
|
| 1,125,722 |
|
|
| 51,327,835 |
|
|
| 68,414,343 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 37,568,895 |
|
|
| 37,568,895 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 38,093,224 |
|
|
| 38,093,224 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 111,504 |
|
|
| 111,504 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 169,138 |
|
|
| 169,138 |
|
Due to banks and correspondents |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 5,334,597 |
|
|
| 5,334,597 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3,979,637 |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,973,377 |
|
|
| 6,973,377 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,890,290 |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 32,068 |
|
|
| 32,068 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 139,685 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,064,345 |
|
|
| 11,064,345 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,338,810 |
|
|
| 11,338,810 |
|
Others accounts payable, provisions and other liabilities |
|
| 403,377 |
|
|
| — |
|
|
| — |
|
|
| 1,565,526 |
|
|
| 1,968,903 |
|
|
| 222,305 |
|
|
| — |
|
|
| — |
|
|
| 1,634,243 |
|
|
| 1,856,548 |
|
|
|
| 403,377 |
|
|
| — |
|
|
| — |
|
|
| 62,650,312 |
|
|
| 63,053,689 |
|
|
| 222,305 |
|
|
| — |
|
|
| — |
|
|
| 62,245,027 |
|
|
| 62,467,332 |
|
50
It comprises the management of the main risks, that due to the nature of their operations, IFS and its Subsidiaries are exposed to; and correspond to: credit risk, market risk, liquidity risk, insurance risk and real estate risk.
In order to manage this risk, every Subsidiary of the Group has a specialized structure and organization in their management, measurement systems, mitigation and coverage processes that considers the specific needs and regulatory requirements to develop its business. The Group and its Subsidiaries, mainly Interbank, Interseguro and Inteligo Bank, operate independently but in coordination with the general provisions issued by the Board of Directors and the Management of IFS.
A full description of the Group’s financial risk management is presented in Note 30 “Financial risk management” of the Annual Consolidated Financial Statements; following is presented the financial information related to credit risk management for the loan portfolio, offsetting of financial assets and liabilities, and foreign exchange risk.
| (a) | Credit risk management for loans |
Interbank’s loan portfolio is segmented into homogeneous groups that shared similar credit risk characteristics. These groups are: (i) Retail Banking (credit card, mortgage, payroll loan, consumer loan and vehicular loan), (ii) Small Business Banking (segments S1, S2 and S3), and (iii) Commercial Banking (corporate, institutional, companies and real estate). In addition, at Inteligo Bank, the internal model developed (scorecard) assigns 5 levels of credit risk classified as follows: low risk, medium low risk, medium risk, medium high risk, and high risk. These categories are described in Note 30.1(d) of the Annual Consolidated Financial Statements.
The information that shows the credit quality and maximum exposure to credit risk of direct loans based on the Group's internal credit rating as of March 31, 2020 and December 31, 2019, are presented in Note 5.
| (b) | Offsetting of financial assets and liabilities |
The information contained in the tables below includes financial assets and liabilities that.
-Are offset in the statement of financial position of the Group; or
| - | Are subject to an enforceable master netting arrangement or similar agreement that covers similar financial instruments, regardless of whether they are offset in the consolidated statement of financial position or not. |
Similar arrangements of the Group include derivatives clearing agreements. Financial instruments such as loans and deposits are not disclosed in the following tables since they are not offset in the consolidated statement of financial position.
The offsetting framework agreement issued by the International Swaps and Derivatives Association Inc. (“ISDA”) and similar master netting arrangements do not meet the criteria for offsetting in the statement of financial position, because of such agreements were created in order for both parties to have an enforceable offsetting right in cases of default, insolvency or bankruptcy of the Group or the counterparties or following other predetermined events. In addition, the Group and its counterparties do not intend to settle such instruments on a net basis or to realize the assets and settle the liabilities simultaneously.
The Group receives and delivers guarantees in the form of cash with respect to transactions with derivatives; see Note 3.
| (b.1) | Financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of March 31, 2020 and December 31, 2019, is presented below: |
51
|
|
|
|
|
|
|
|
|
|
|
|
|
| Related amounts not offset in the interim condensed consolidated statement of financial position |
|
|
|
|
| |||||
|
| Gross amounts of recognized financial assets |
|
| Gross amounts of recognized financial liabilities and offset in the interim condensed consolidated statement of financial position |
|
| Net amounts of financial assets presented in the interim condensed consolidated statement of financial position |
|
| Financial instruments (including non-cash collateral) |
|
| Cash collateral received (pledged), Note 3(d) |
|
| Net amount |
| ||||||
Assets |
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||
As of March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 441,692 |
|
|
| — |
|
|
| 441,692 |
|
|
| (290,541 | ) |
|
| (32,755 | ) |
|
| 118,396 |
|
Total assets |
|
| 441,692 |
|
|
| — |
|
|
| 441,692 |
|
|
| (290,541 | ) |
|
| (32,755 | ) |
|
| 118,396 |
|
As of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 220,776 |
|
|
| — |
|
|
| 220,776 |
|
|
| (134,103 | ) |
|
| (42,351 | ) |
|
| 44,322 |
|
Total assets |
|
| 220,776 |
|
|
| — |
|
|
| 220,776 |
|
|
| (134,103 | ) |
|
| (42,351 | ) |
|
| 44,322 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 403,377 |
|
|
| — |
|
|
| 403,377 |
|
|
| (290,541 | ) |
|
| (96,064 | ) |
|
| 16,772 |
|
Total liabilities |
|
| 403,377 |
|
|
| — |
|
|
| 403,377 |
|
|
| (290,541 | ) |
|
| (96,064 | ) |
|
| 16,772 |
|
As of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 222,305 |
|
|
| — |
|
|
| 222,305 |
|
|
| (134,103 | ) |
|
| (57,816 | ) |
|
| 30,386 |
|
Total liabilities |
|
| 222,305 |
|
|
| — |
|
|
| 222,305 |
|
|
| (134,103 | ) |
|
| (57,816 | ) |
|
| 30,386 |
|
| (c) | Foreign exchange risk |
The Group is exposed to fluctuations in the exchange rates of the foreign currency prevailing in its financial position and cash flows. Management sets limits on the levels of exposure by currency and total daily and overnight positions, which are monitored daily. Most of the assets and liabilities in foreign currency are stated in US Dollars. Transactions in foreign currency are made at the exchange rates of free market.
As of March 31, 2020, the weighted average exchange rate of free market published by the SBS for transactions in US Dollars was S/3.433 per US$1 bid and S/3.442 per US$1 ask (S/3.311 and S/3.317 as of December 31, 2019, respectively). As of March 31, 2020, the exchange rate for the accounting of asset and liability accounts in foreign currency set by the SBS was S/3.437 per US$1 (S/3.314 as of December 31, 2019).
52
The table below presents the detail of the Group’s position:
|
| As of March 31, 2020 |
|
| As of December 31, 2019 |
| ||||||||||||||||||||||||||
|
| US Dollars |
|
| Soles |
|
| Other currencies |
|
| Total |
|
| US Dollars |
|
| Soles |
|
| Other currencies |
|
| Total |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
| 10,122,439 |
|
|
| 1,011,648 |
|
|
| 449,184 |
|
|
| 11,583,271 |
|
|
| 9,386,504 |
|
|
| 1,311,291 |
|
|
| 431,080 |
|
|
| 11,128,875 |
|
Inter-bank funds |
|
| — |
|
|
| 150,005 |
|
|
| — |
|
|
| 150,005 |
|
|
| — |
|
|
| 85,006 |
|
|
| — |
|
|
| 85,006 |
|
Financial investments |
|
| 6,761,281 |
|
|
| 11,841,465 |
|
|
| 32,187 |
|
|
| 18,634,933 |
|
|
| 6,948,954 |
|
|
| 12,111,165 |
|
|
| 12,599 |
|
|
| 19,072,718 |
|
Loans, net |
|
| 10,881,169 |
|
|
| 26,180,883 |
|
|
| — |
|
|
| 37,062,052 |
|
|
| 10,919,233 |
|
|
| 26,217,620 |
|
|
| — |
|
|
| 37,136,853 |
|
Due from customers on acceptances |
|
| 21,485 |
|
|
| — |
|
|
| 10,583 |
|
|
| 32,068 |
|
|
| 128,397 |
|
|
| — |
|
|
| 11,288 |
|
|
| 139,685 |
|
Other accounts receivable and other assets, net |
|
| 422,199 |
|
|
| 691,474 |
|
|
| 1,245 |
|
|
| 1,114,918 |
|
|
| 245,402 |
|
|
| 604,456 |
|
|
| 1,348 |
|
|
| 851,206 |
|
|
|
| 28,208,573 |
|
|
| 39,875,475 |
|
|
| 493,199 |
|
|
| 68,577,247 |
|
|
| 27,628,490 |
|
|
| 40,329,538 |
|
|
| 456,315 |
|
|
| 68,414,343 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 14,164,431 |
|
|
| 23,051,184 |
|
|
| 353,280 |
|
|
| 37,568,895 |
|
|
| 13,840,447 |
|
|
| 23,888,049 |
|
|
| 364,728 |
|
|
| 38,093,224 |
|
Inter-bank funds |
|
| — |
|
|
| 111,504 |
|
|
| — |
|
|
| 111,504 |
|
|
| 149,137 |
|
|
| 20,001 |
|
|
| — |
|
|
| 169,138 |
|
Due to banks and correspondents |
|
| 1,411,509 |
|
|
| 3,923,088 |
|
|
| — |
|
|
| 5,334,597 |
|
|
| 830,122 |
|
|
| 3,149,515 |
|
|
| — |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| 6,092,408 |
|
|
| 880,969 |
|
|
| — |
|
|
| 6,973,377 |
|
|
| 5,857,206 |
|
|
| 1,033,084 |
|
|
| — |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
| 21,485 |
|
|
| — |
|
|
| 10,583 |
|
|
| 32,068 |
|
|
| 128,397 |
|
|
| — |
|
|
| 11,288 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| 4,099,616 |
|
|
| 6,964,729 |
|
|
| — |
|
|
| 11,064,345 |
|
|
| 4,234,217 |
|
|
| 7,104,593 |
|
|
| — |
|
|
| 11,338,810 |
|
Other accounts payable, provisions and other liabilities |
|
| 388,264 |
|
|
| 1,579,404 |
|
|
| 1,235 |
|
|
| 1,968,903 |
|
|
| 414,604 |
|
|
| 1,441,612 |
|
|
| 332 |
|
|
| 1,856,548 |
|
|
|
| 26,177,713 |
|
|
| 36,510,878 |
|
|
| 365,098 |
|
|
| 63,053,689 |
|
|
| 25,454,130 |
|
|
| 36,636,854 |
|
|
| 376,348 |
|
|
| 62,467,332 |
|
Forwards position, net |
|
| (2,578,677 | ) |
|
| 2,670,904 |
|
|
| (92,227 | ) |
|
| — |
|
|
| (2,718,082 | ) |
|
| 2,776,866 |
|
|
| (58,784 | ) |
|
| — |
|
Currency swaps position, net |
|
| 134,882 |
|
|
| (135,157 | ) |
|
| 275 |
|
|
| — |
|
|
| 138,676 |
|
|
| (138,676 | ) |
|
| — |
|
|
| — |
|
Cross currency swaps position, net |
|
| 1,828,972 |
|
|
| (1,828,972 | ) |
|
| — |
|
|
| — |
|
|
| 1,763,518 |
|
|
| (1,763,518 | ) |
|
| — |
|
|
| — |
|
Options position, net |
|
| (433 | ) |
|
| 433 |
|
|
| — |
|
|
| — |
|
|
| (37 | ) |
|
| 37 |
|
|
| — |
|
|
| — |
|
Monetary position, net |
|
| 1,415,604 |
|
|
| 4,071,805 |
|
|
| 36,149 |
|
|
| 5,523,558 |
|
|
| 1,358,435 |
|
|
| 4,567,393 |
|
|
| 21,183 |
|
|
| 5,947,011 |
|
As of March 31, 2020, the Group granted indirect loans (contingent operations) in foreign currency for approximately US$640,732,000, equivalent to S/2,202,196,000 (US$683,214,000, equivalent to S/2,264,171,000 as of December 31, 2019).
53
| (a) | Financial instruments measured at their fair value and fair value hierarchy |
The following table presents an analysis of the financial instruments that are measured at their fair value, including the level of hierarchy of fair value. The amounts are based on the balances presented in the consolidated statement of financial position:
|
| As of March 31, 2020 |
|
| As of December 31, 2019 |
| ||||||||||||||||||||||||||
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At fair value through profit or loss (*) |
|
| 503,118 |
|
|
| 350,960 |
|
|
| 539,860 |
|
|
| 1,393,938 |
|
|
| 682,341 |
|
|
| 381,844 |
|
|
| 487,352 |
|
|
| 1,551,537 |
|
Debt instruments measured at fair value through other comprehensive income |
|
| 11,293,919 |
|
|
| 2,509,289 |
|
|
| — |
|
|
| 13,803,208 |
|
|
| 10,779,395 |
|
|
| 3,230,634 |
|
|
| — |
|
|
| 14,010,029 |
|
Equity instruments measured at fair value through other comprehensive income |
|
| 990,551 |
|
|
| 8,151 |
|
|
| — |
|
|
| 998,702 |
|
|
| 1,119,620 |
|
|
| 6,102 |
|
|
| — |
|
|
| 1,125,722 |
|
Derivatives receivable |
|
| — |
|
|
| 441,692 |
|
|
| — |
|
|
| 441,692 |
|
|
| — |
|
|
| 220,776 |
|
|
| — |
|
|
| 220,776 |
|
|
|
| 12,787,588 |
|
|
| 3,310,092 |
|
|
| 539,860 |
|
|
| 16,637,540 |
|
|
| 12,581,356 |
|
|
| 3,839,356 |
|
|
| 487,352 |
|
|
| 16,908,064 |
|
Accrued interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 163,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 178,444 |
|
Total financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 16,800,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,086,508 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives payable |
|
| — |
|
|
| 403,377 |
|
|
| — |
|
|
| 403,377 |
|
|
| — |
|
|
| 222,305 |
|
|
| — |
|
|
| 222,305 |
|
(*) | As of March 31, 2020 and December 31, 2019, correspond mainly to participations in mutual funds and investment funds. |
Financial assets included in Level 1 are those measured on the basis of information that is available on the market, to the extent that their quoted prices reflect an active and liquid market and that are available in some centralized trading mechanism, trading agent, price supplier or regulatory entity.
Financial instruments included in Level 2 are valued based on the market prices of other instruments with similar characteristics or with financial valuation models based on information of variables observable in the market (interest rate curves, price vectors, etc.).
Financial assets included in Level 3 are valued by using assumptions and data that do not correspond to prices of operations traded on the market. Fair value is estimated using a discounted cash flow (DCF) model. The valuation requires Management to make certain assumptions about the model variables and data, including the forecast of cash flow, discount rate, credit risk and volatility.
The table below presents a description of significant unobservable data used in valuation
|
| Valuation technique |
| Significant unobservable inputs |
| Valuation |
|
| Sensitivity of inputs to fair value | |
Royalty Pharma |
| DCF Method |
| Sales forecast |
| Average sector analysis, estimates |
|
| 10 percent increase (decrease) in the sales forecast would result in increase (decrease) in fair value by S/10,689,000. | |
|
|
|
|
|
|
|
|
|
| 500 basis points increase in the WACC would result in decrease in fair value by S/17,202,000. |
|
|
|
| WACC |
| 8.00% |
|
| 500 basis points decrease in the WACC would result in increase in fair value by S/24,032,000. | |
Mutual funds and investment funds participations |
| DCF Method |
| Discount rate |
| Depends on the credit risk |
|
| 500 basis points increase in the discount rate would result in decrease in fair value by S/3,279,000. | |
|
|
|
|
|
|
|
|
|
| 500 basis points decrease in the discount rate would result in increase in fair value by S/4,255,000. |
|
|
|
| WACC |
| 9.00% |
|
| 500 basis points increase in the WACC would result in decrease in fair value by S/711,000. | |
|
|
|
|
|
|
|
|
|
| 500 basis points decrease in the WACC would result in increase in fair value by S/842,000. |
|
| Comparable multiples |
| Price-to-sales ratio |
| Depends on industry’s entity |
|
| 10 percent increase (decrease) in the price-to-sales ratio would result in increase (decrease) in fair value by S/3,743,000. | |
|
| Equity value |
|
|
| Depends on the credit risk |
|
| 500 basis points increase (decrease) in the equity value would result in increase (decrease) in fair value by S/3,000. |
54
The table below includes a reconciliation of fair value measurement of financial instruments classified by the Group within Level 3 of the valuation hierarchy:
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Balance as of January 1 |
|
| 487,352 |
|
|
| 407,957 |
|
Purchases |
|
| 22,588 |
|
|
| 222,098 |
|
Sales |
|
| (18,811 | ) |
|
| (150,575 | ) |
Total gain recognized on the interim condensed consolidated statement of income |
|
| 48,731 |
|
|
| 7,872 |
|
Ending balance |
|
| 539,860 |
|
|
| 487,352 |
|
During the three-month period ended March 31, 2020 and 2019, there were neither transfers of financial instruments from Level 3 to Level 1 or Level 2, nor from Level 1 to Level 2.
55
The table below presents the disclosure of the comparison between the carrying amounts and fair values of the Group’s financial instruments that are not measured at their fair value, presented by level of fair value hierarchy:
|
| As of March 31, 2020 |
|
| As of December 31, 2019 |
| ||||||||||||||||||||||||||||||||||
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| Level 1 |
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| Level 2 |
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| Level 3 |
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| Fair value |
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| Book value |
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| Level 1 |
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| Level 2 |
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| Level 3 |
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| Fair value |
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| Book value |
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|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
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|
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|
|
|
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Cash and due from banks |
|
| — |
|
|
| 11,583,271 |
|
|
| — |
|
|
| 11,583,271 |
|
|
| 11,583,271 |
|
|
| — |
|
|
| 11,128,875 |
|
|
| — |
|
|
| 11,128,875 |
|
|
| 11,128,875 |
|
Inter-bank funds |
|
| — |
|
|
| 150,005 |
|
|
| — |
|
|
| 150,005 |
|
|
| 150,005 |
|
|
| — |
|
|
| 85,006 |
|
|
| — |
|
|
| 85,006 |
|
|
| 85,006 |
|
Investments at amortized cost |
|
| 1,840,538 |
|
|
| 534,810 |
|
|
| — |
|
|
| 2,375,348 |
|
|
| 2,275,889 |
|
|
| 929,333 |
|
|
| 1,398,970 |
|
|
| — |
|
|
| 2,328,303 |
|
|
| 2,206,986 |
|
Loans, net |
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| — |
|
|
| 37,571,473 |
|
|
| — |
|
|
| 37,571,473 |
|
|
| 37,062,052 |
|
|
| — |
|
|
| 38,115,562 |
|
|
| — |
|
|
| 38,115,562 |
|
|
| 37,136,853 |
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Due from customers on acceptances |
|
| — |
|
|
| 32,068 |
|
|
| — |
|
|
| 32,068 |
|
|
| 32,068 |
|
|
| — |
|
|
| 139,685 |
|
|
| — |
|
|
| 139,685 |
|
|
| 139,685 |
|
Other accounts receivables and other assets, net |
|
| — |
|
|
| 673,226 |
|
|
| — |
|
|
| 673,226 |
|
|
| 673,226 |
|
|
| — |
|
|
| 630,430 |
|
|
| — |
|
|
| 630,430 |
|
|
| 630,430 |
|
Total |
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| 1,840,538 |
|
|
| 50,544,853 |
|
|
| — |
|
|
| 52,385,391 |
|
|
| 51,776,511 |
|
|
| 929,333 |
|
|
| 51,498,528 |
|
|
| — |
|
|
| 52,427,861 |
|
|
| 51,327,835 |
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Liabilities |
|
|
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|
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Deposits and obligations |
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| — |
|
|
| 37,632,836 |
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|
| — |
|
|
| 37,632,836 |
|
|
| 37,568,895 |
|
|
| — |
|
|
| 38,099,641 |
|
|
| — |
|
|
| 38,099,641 |
|
|
| 38,093,224 |
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Inter-bank funds |
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| — |
|
|
| 111,504 |
|
|
| — |
|
|
| 111,504 |
|
|
| 111,504 |
|
|
| — |
|
|
| 169,138 |
|
|
| — |
|
|
| 169,138 |
|
|
| 169,138 |
|
Due to banks and correspondents |
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| — |
|
|
| 5,351,302 |
|
|
| — |
|
|
| 5,351,302 |
|
|
| 5,334,597 |
|
|
| — |
|
|
| 3,982,373 |
|
|
| — |
|
|
| 3,982,373 |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| 4,783,537 |
|
|
| 1,905,546 |
|
|
| — |
|
|
| 6,689,083 |
|
|
| 6,973,377 |
|
|
| 5,073,917 |
|
|
| 2,044,630 |
|
|
| — |
|
|
| 7,118,547 |
|
|
| 6,890,290 |
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Due from customers on acceptances |
|
| — |
|
|
| 32,068 |
|
|
| — |
|
|
| 32,068 |
|
|
| 32,068 |
|
|
| — |
|
|
| 139,685 |
|
|
| — |
|
|
| 139,685 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| — |
|
|
| 11,064,345 |
|
|
| — |
|
|
| 11,064,345 |
|
|
| 11,064,345 |
|
|
| — |
|
|
| 11,338,810 |
|
|
| — |
|
|
| 11,338,810 |
|
|
| 11,338,810 |
|
Other accounts payable and other liabilities |
|
| — |
|
|
| 1,565,526 |
|
|
| — |
|
|
| 1,565,526 |
|
|
| 1,565,526 |
|
|
| — |
|
|
| 1,634,243 |
|
|
| — |
|
|
| 1,634,243 |
|
|
| 1,634,243 |
|
Total |
|
| 4,783,537 |
|
|
| 57,663,127 |
|
|
| — |
|
|
| 62,446,664 |
|
|
| 62,650,312 |
|
|
| 5,073,917 |
|
|
| 57,408,520 |
|
|
| — |
|
|
| 62,482,437 |
|
|
| 62,245,027 |
|
The methodologies and assumptions used to determine fair values depend on the terms and risk characteristics of each financial instrument and they include the following:
| (i) | Long-term fixed-rate and variable-rate loans are assessed by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the estimated losses of these loans. As of March 31, 2020 and December 31, 2019, the book value of loans, net of allowances, was not significantly different from the calculated fair values. |
| (ii) | Instruments whose fair value approximates their book value: For financial assets and financial liabilities that are liquid or have short-term maturity (less than 3 months) it is assumed that the carrying amounts approximate to their fair values. This assumption is also applied to demand deposits, savings accounts without a specific maturity and variable-rate financial instruments. |
| (iii) | Fixed-rate financial instruments: The fair value of fixed-rate financial assets and financial liabilities at amortized cost is determined by comparing market interest rates when they were first recognized with current market rates related to similar financial instruments for their remaining term to maturity. The fair value of fixed interest rate deposits is based on discounted cash flows using market interest rates for financial instruments with similar credit risk and maturity. For quoted debt issued, the fair value is determined based on quoted market prices. When quotations are not available, a discounted cash flow model is used based on the yield curve of the appropriate interest rate for the remaining term to maturity. |
56
The Group provides custody, trustee, investment management and advisory services to third parties; therefore, the Group makes purchase and sale decisions in relation to a wide range of financial instruments. Assets that are held in trust are not included in the consolidated financial statements. These services give rise to the risk that the Group could eventually be held responsible of yield of the assets under its management.
As of March 31, 2020 and December 31, 2019, the value of the managed off-balance sheet financial assets is as follows:
|
| 31.03.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Investment funds |
|
| 13,029,913 |
|
|
| 13,243,888 |
|
Mutual funds |
|
| 4,975,941 |
|
|
| 5,049,034 |
|
Total |
|
| 18,005,854 |
|
|
| 18,292,922 |
|
25. | Subsequent events |
The Annual General Shareholders’ Meeting held on April 7, 2020, approved the distribution of dividends for approximately S/698,228,000, at a rate of US$1.75 per share, payable on May 6, 2020.
On the other hand, in April 2020 Interbank performed the Optional Redemption over the entirety of the outstanding Subordinated Bonds Level 1, denominated “8.500% Non-Cumulative Fixed/Floating Rate Step-Up Junior Subordinated Notes due 2070”, issued by Interbank through its Panama Branch for US$200,000,000, in accordance with the Issuance Indenture signed on April 23, 2010, between Interbank and The Bank of New York Mellon, which acted as Trustee.
57