Exhibit 99.1 |
Intercorp Financial Services Inc.
Third Quarter 2020 Earnings
Lima, Peru, November 12, 2020. Intercorp Financial Services Inc. (Lima Stock Exchange/NYSE: IFS) announced today its unaudited results for the third quarter 2020. These results are reported on a consolidated basis under IFRS in nominal Peruvian soles.
Intercorp Financial Services: Improving performance in 3Q20, adjusted quarterly ROAE up to 16.3%
| • | 3Q20 earnings positively impacted by lower provisions at Interbank and strong results at Interseguro and Inteligo |
| • | Interbank back to profits while Interseguro and Inteligo posted high profitability |
| • | Strengthened capital ratios at all segments |
| • | Adjusted efficiency ratio at 27.9%, an improvement of 200 bps QoQ and 680 pbs YoY |
| • | Digital trends and new alliances continue to support IFS’ strategy |
Interbank: 3Q20 earnings positively impacted by lower provisions and top line recovery
| • | 12.9% market share in loans, boosted by Reactiva Peru disbursements |
| • | Quarterly recovery in revenues with adjusted NII growing 5.7% and total other income 26.8% |
| • | 50 bps QoQ reduction in cost of funds, down to 1.7% |
| • | Quarterly decrease in provisions, yet still above pre COVID-19 levels; 4.5% CoR in 3Q20 |
| • | 450 bps YoY improvement in adjusted efficiency ratio |
Interseguro: Solid profits in 3Q20 drove ROAE up to 19.4% in 9M20
| • | Top line recovery and positive adjustment of technical reserves offset higher net claims and benefits |
| • | Cost containment measures resulted in 14.6% YoY reduction in other expenses |
| • | Results from investments increased 5.5% QoQ and 8.1% YoY, with ROIP reaching 6.2% |
| • | Market leader in annuities with a 27.2% share YTD |
Inteligo: Earnings boost driven by positive investment results, 9M20 ROAE recovered to 14.5%
| • | Three-fold QoQ and five-fold YoY growth in net profit |
| • | Revenues positively affected by mark-to-market on investment portfolio |
| • | Continued growth in AUM: 3.0% QoQ and 9.9% YoY |
1
SUMMARY
Intercorp Financial Services’ Statement of financial position
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks and inter-bank funds |
|
| 11,710.7 |
|
|
| 15,156.3 |
|
|
| 17,573.1 |
|
|
| 15.9 | % |
|
| 50.1 | % |
Financial investments |
|
| 18,353.2 |
|
|
| 21,198.7 |
|
|
| 22,787.9 |
|
|
| 7.5 | % |
|
| 24.2 | % |
Loans, net of unearned interest |
|
| 36,880.4 |
|
|
| 42,061.8 |
|
|
| 43,962.9 |
|
|
| 4.5 | % |
|
| 19.2 | % |
Impairment allowance for loans |
|
| (1,465.1 | ) |
|
| (2,731.3 | ) |
|
| (3,116.5 | ) |
|
| 14.1 | % |
| n.m. |
| |
Property, furniture and equipment, net |
|
| 879.8 |
|
|
| 899.3 |
|
|
| 875.0 |
|
|
| (2.7 | )% |
|
| (0.6 | )% |
Other assets |
|
| 5,045.8 |
|
|
| 5,195.1 |
|
|
| 3,930.0 |
|
|
| (24.4 | )% |
|
| (22.1 | )% |
Total assets |
|
| 71,404.9 |
|
|
| 81,779.8 |
|
|
| 86,012.4 |
|
|
| 5.2 | % |
|
| 20.5 | % |
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 36,277.2 |
|
|
| 44,144.7 |
|
|
| 45,208.9 |
|
|
| 2.4 | % |
|
| 24.6 | % |
Due to banks and correspondents and inter-bank funds |
|
| 4,468.8 |
|
|
| 7,997.7 |
|
|
| 10,555.0 |
|
|
| 32.0 | % |
| n.m. |
| |
Bonds, notes and other obligations |
|
| 8,339.3 |
|
|
| 7,495.4 |
|
|
| 7,696.1 |
|
|
| 2.7 | % |
|
| (7.7 | )% |
Insurance contract liabilities |
|
| 11,453.3 |
|
|
| 11,708.2 |
|
|
| 11,793.3 |
|
|
| 0.7 | % |
|
| 3.0 | % |
Other liabilities |
|
| 2,385.7 |
|
|
| 2,596.9 |
|
|
| 2,424.0 |
|
|
| (6.7 | )% |
|
| 1.6 | % |
Total liabilities |
|
| 62,924.2 |
|
|
| 73,943.0 |
|
|
| 77,677.2 |
|
|
| 5.1 | % |
|
| 23.4 | % |
Equity, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to IFS' shareholders |
|
| 8,436.2 |
|
|
| 7,795.0 |
|
|
| 8,291.7 |
|
|
| 6.4 | % |
|
| (1.7 | )% |
Non-controlling interest |
|
| 44.4 |
|
|
| 41.8 |
|
|
| 43.5 |
|
|
| 4.0 | % |
|
| (2.0 | )% |
Total equity, net |
|
| 8,480.6 |
|
|
| 7,836.8 |
|
|
| 8,335.2 |
|
|
| 6.4 | % |
|
| (1.7 | )% |
Total liabilities and equity net |
|
| 71,404.9 |
|
|
| 81,779.8 |
|
|
| 86,012.4 |
|
|
| 5.2 | % |
|
| 20.5 | % |
Intercorp Financial Services’ profits were S/ 318.5 million in 3Q20, compared to a loss of S/ -457.3 million in 2Q20 and net profit of S/ 334.5 million in 3Q19. However, it is worth noting that IFS’ results in 3Q20 were negatively impacted by the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic, for S/ 14.5 million or S/ 10.2 million after taxes.
IFS annualized ROAE was 15.8% in 3Q20, a recovery from the previous quarter, but still below the 16.8% annualized ROAE reported in 3Q19. However, when excluding the previously mentioned impact, 3Q20 annualized ROAE was 16.3%.
2
Intercorp Financial Services’ P&L statement
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 1,228.9 |
|
|
| 1,043.5 |
|
|
| 1,186.1 |
|
|
| 13.7 | % |
|
| (3.5 | )% | |
Interest and similar expenses |
|
| (349.5 | ) |
|
| (309.7 | ) |
|
| (281.0 | ) |
|
| (9.3 | )% |
|
| (19.6 | )% |
Net interest and similar income |
|
| 879.4 |
|
|
| 733.8 |
|
|
| 905.1 |
|
|
| 23.3 | % |
|
| 2.9 | % |
Impairment loss on loans, net of recoveries |
|
| (223.6 | ) |
|
| (1,290.5 | ) |
|
| (463.3 | ) |
|
| (64.1 | )% |
| n.m. |
| |
Recovery (loss) due to impairment of financial investments |
|
| (1.1 | ) |
|
| (11.9 | ) |
|
| (2.8 | ) |
|
| (76.4 | )% |
| n.m. |
| |
Net interest and similar income after impairment loss |
|
| 654.7 |
|
|
| (568.6 | ) |
|
| 439.0 |
|
| n.m. |
|
|
| (32.9 | )% | |
Fee income from financial services, net |
|
| 229.8 |
|
|
| 142.6 |
|
|
| 174.7 |
|
|
| 22.5 | % |
|
| (24.0 | )% |
Other income |
|
| 141.9 |
|
|
| 187.3 |
|
|
| 267.8 |
|
|
| 43.0 | % |
|
| 88.7 | % |
Total premiums earned minus claims and benefits |
|
| (58.1 | ) |
|
| (63.9 | ) |
|
| (61.7 | ) |
|
| (3.4 | )% |
|
| 6.3 | % |
Net Premiums |
|
| 157.5 |
|
|
| 117.7 |
|
|
| 130.7 |
|
|
| 11.1 | % |
|
| (17.0 | )% |
Adjustment of technical reserves |
|
| (39.5 | ) |
|
| (2.8 | ) |
|
| 17.6 |
|
| n.m. |
|
| n.m. |
| ||
Net claims and benefits incurred |
|
| (176.1 | ) |
|
| (178.7 | ) |
|
| (210.0 | ) |
|
| 17.5 | % |
|
| 19.3 | % |
Other expenses |
|
| (498.0 | ) |
|
| (415.9 | ) |
|
| (446.7 | ) |
|
| 7.4 | % |
|
| (10.3 | )% |
Income before translation result and income tax |
|
| 470.4 |
|
|
| (718.5 | ) |
|
| 373.1 |
|
| n.m. |
|
|
| (20.7 | )% | |
Translation result |
|
| (16.8 | ) |
|
| (5.7 | ) |
|
| (12.5 | ) |
| n.m. |
|
|
| (25.6 | )% | |
Income tax |
|
| (119.1 | ) |
|
| 266.9 |
|
|
| (42.1 | ) |
| n.m. |
|
|
| (64.7 | )% | |
Profit for the period |
|
| 334.5 |
|
|
| (457.3 | ) |
|
| 318.5 |
|
| n.m. |
|
|
| (4.8 | )% | |
Attributable to IFS' shareholders |
|
| 332.4 |
|
|
| (453.5 | ) |
|
| 317.4 |
|
| n.m. |
|
|
| (4.5 | )% | |
EPS |
|
| 2.94 |
|
| n.m. |
|
|
| 2.75 |
|
|
|
|
|
|
|
|
| |
ROAE |
|
| 16.8 | % |
| n.m. |
|
|
| 15.8 | % |
|
|
|
|
|
|
|
| |
ROAA |
|
| 1.9 | % |
| n.m. |
|
|
| 1.5 | % |
|
|
|
|
|
|
|
| |
Efficiency ratio |
|
| 34.7 | % |
|
| 33.4 | % |
|
| 28.2 | % |
|
|
|
|
|
|
|
|
Quarter-on-quarter performance
IFS’ quarterly performance was mainly due to lower impairment loss on loans at Interbank, in addition to higher net interest and similar income across all subsidiaries and growth in other income at Inteligo and Interbank. These effects were partially offset by resumed income tax payments at Interbank, as well as higher other expenses mostly at Interbank and Interseguro.
Net interest and similar income increased S/ 171.3 million, or 23.3% QoQ, mainly due to higher interest on loans and on financial investments at Interbank. Additionally, a positive impact from a higher inflation rate on Interseguro’s fixed income portfolio and incremental dividends received from investments at Inteligo, also contributed to the quarterly increase in net interest and similar income.
Impairment loss on loans decreased 64.1% QoQ, mainly due to a base effect related to the adjustments of the bank’s expected loss models to address the impact of the COVID-19 pandemic, which were first implemented in 2Q20. These adjustments included: (i) the update of macroeconomic variables used in our forward-looking risk models; (ii) the migration within stages of retail exposures subject to multiple installments or total debt rescheduling; and (iii) a case-by-case risk analysis within our commercial loan book.
Net fee income from financial services increased S/ 32.1 million, or 22.5% QoQ, mainly explained by higher 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. These effects were partially offset by lower brokerage and custody fees at Inteligo.
Other income increased S/ 80.5 million, or 43.0% QoQ, mainly due to higher net trading gains at Inteligo, mostly related to positive mark-to-market valuations on its proprietary investment portfolio. Additionally, growth in extraordinary revenue items at Interbank also contributed to the quarterly increase in other income. These effects were partially compensated by reductions in net gain on sale of financial investments and in net gain on financial assets at fair value at Interseguro.
Total premiums earned minus claims and benefits at Interseguro showed a quarterly growth of S/ 2.2 million, explained by a S/ 20.4 million release in adjustment of technical reserves and a S/ 13.0 million increase in net premiums, partially offset by S/ 31.3 million growth in net claims and benefits incurred.
3
Other expenses increased S/ 30.8 million, or 7.4% QoQ, mainly due to higher third-party commissions at Interbank and Interseguro, net expenses related to rental income at Interseguro, and salaries and employee benefits at Inteligo and Interseguro. It is worth mentioning that these increases were related to a moderate recovery in business activity.
Finally, resumed income tax payments at Interbank and a negative effect in translation result partially offset the quarterly growth in profits.
Year-on-year performance
The annual decrease in IFS’ profits was mainly due to higher impairment loss on loans at Interbank, in addition to reductions in net fee income from financial services at all subsidiaries. Moreover, lower total premiums earned minus claims and benefits at Interseguro also contributed to the YoY reduction in bottom-line. These effects were partially offset by increases in other income across all subsidiaries and in net interest and similar income at Interbank and Interseguro. Additionally, reductions in the effective tax rate at Interbank and in other expenses at all three business segments also contributed to offset the annual reduction in earnings.
Net interest and similar income increased S/ 25.7 million, or 2.9% YoY, mainly due to lower interest expense on deposits and obligations, and on bonds, notes and other obligations, both at Interbank. Additionally, a positive impact from a higher inflation rate on Interseguro’s fixed income portfolio also contributed to the annual increase in net interest and similar income. These effects were partially offset by a contraction in the spread between the loan rate and the deposit rate at Inteligo.
Impairment loss on loans grew more than two-fold YoY, explained by higher provision requirements in cash loans, credit cards and mortgages, as well as in all segments of the commercial loan book. All this was mainly attributed to the adjustments of the bank’s expected loss models to address the impact of the COVID-19 pandemic.
Net fee income from financial services decreased S/ 55.1 million, or 24.0% YoY, mainly due to lower commissions from credit card services, commissions from banking services, and fees from maintenance and mailing of accounts, transfer fees and commissions on debit card services, all at Interbank. Additionally, lower brokerage fees at Inteligo also contributed to the lower result.
Other income increased S/ 125.9 million, or 88.7% YoY, mainly due to positive mark-to-market valuations on proprietary portfolio investments at Inteligo and higher net gain on sale of financial investments at Interbank. Moreover, growth in net gain on financial assets at fair value, and net gain on sale of financial investments, in addition to a favorable effect in gain on sale of investment property at Interseguro, also contributed to the annual performance in other income.
On a yearly basis, total premiums earned minus claims and benefits at Interseguro decreased S/ 3.6 million explained by a S/ 33.9 million increase in net claims and benefits incurred, and a S/ 26.8 million decrease in net premiums, partially offset by a S/ 57.1 million reduction in adjustment of technical reserves.
Other expenses decreased double-digit across all subsidiaries, as a result of cost containment measures implemented to offset the impacts of the COVID-19 pandemic on revenues.
IFS effective tax rate decreased, from 26.3% in 3Q19 to 11.7% in 3Q20, mainly attributed to a lower effective tax rate at Interbank and higher tax-exempt profits from Inteligo and Interseguro.
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.
Intercorp Financial Services’ Profit by segment
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interbank |
|
| 291.2 |
|
|
| (567.7 | ) |
|
| 146.7 |
|
| n.m. |
|
|
| (49.6 | )% | |
Interseguro |
|
| 34.0 |
|
|
| 58.5 |
|
|
| 66.5 |
|
|
| 13.8 | % |
|
| 96.0 | % |
Inteligo |
|
| 18.9 |
|
|
| 32.6 |
|
|
| 110.5 |
|
| n.m. |
|
| n.m. |
| ||
Corporate and eliminations |
|
| (9.6 | ) |
|
| 19.3 |
|
|
| (5.3 | ) |
| n.m. |
|
|
| (44.9 | )% | |
IFS profit for the period |
|
| 334.5 |
|
|
| (457.3 | ) |
|
| 318.5 |
|
| n.m. |
|
|
| (4.8 | )% |
4
SUMMARY
Interbank’s profits were S/ 146.7 million in 3Q20, compared to a loss of S/ -567.7 million in 2Q20 and net profit of S/ 291.2 million in 3Q19. The quarterly result was mainly attributed to an S/ 827.3 million reduction in impairment loss on loans, in addition to growth of S/ 162.8 million in net interest and similar income, S/ 40.1 million in net fee income from financial services, and S/ 17.5 million in other income. These effects were partially offset by resumed income tax payments and a S/ 31.0 million increase in other expenses.
The annual performance in net profit was mainly due to a S/ 239.6 million growth in impairment loss on loans and a S/ 60.3 million reduction in net fee income from financial services. These effects were partially compensated by a lower effective tax rate and a S/ 44.5 million decrease in other expenses, as well as by increases of S/ 21.1 million in other income and S/ 18.5 million in net interest and similar income.
It is worth mentioning that interest and similar income, and net interest and similar income were negatively affected by the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic for S/ 136.6 million or S/ 96.3 million after taxes in 2Q20, and for S/ 14.5 million or S/ 10.2 million after taxes in 3Q20.
Interbank’s ROAE was 10.1% in 3Q20, an improvement compared to the situation in 2Q20, but still lower than the 19.8% reported in 3Q19. Excluding the impact from the modification of contractual cash flows, the bank’s ROAE was 10.8% in 3Q20.
Banking Segment’s P&L Statement
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 1,038.2 |
|
|
| 853.1 |
|
|
| 987.0 |
|
|
| 15.7 | % |
|
| (4.9 | )% | |
Interest and similar expense |
|
| (314.6 | ) |
|
| (273.8 | ) |
|
| (244.8 | ) |
|
| (10.6 | )% |
|
| (22.2 | )% |
Net interest and similar income |
|
| 723.6 |
|
|
| 579.3 |
|
|
| 742.1 |
|
|
| 28.1 | % |
|
| 2.6 | % |
Impairment loss on loans, net of recoveries |
|
| (223.6 | ) |
|
| (1,290.5 | ) |
|
| (463.2 | ) |
|
| (64.1 | )% |
| n.m. |
| |
Recovery (loss) due to impairment of financial investments |
|
| (0.0 | ) |
|
| 0.2 |
|
|
| (0.1 | ) |
| n.m. |
|
| n.m. |
| ||
Net interest and similar income after impairment loss |
|
| 500.0 |
|
|
| (711.1 | ) |
|
| 278.8 |
|
| n.m. |
|
|
| (44.2 | )% | |
Fee income from financial services, net |
|
| 213.4 |
|
|
| 113.0 |
|
|
| 153.1 |
|
|
| 35.5 | % |
|
| (28.2 | )% |
Other income |
|
| 98.6 |
|
|
| 102.2 |
|
|
| 119.7 |
|
|
| 17.1 | % |
|
| 21.4 | % |
Other expenses |
|
| (411.8 | ) |
|
| (336.3 | ) |
|
| (367.3 | ) |
|
| 9.2 | % |
|
| (10.8 | )% |
Income before translation result and income tax |
|
| 400.2 |
|
|
| (832.2 | ) |
|
| 184.3 |
|
| n.m. |
|
|
| (53.9 | )% | |
Translation result |
|
| 1.2 |
|
|
| 1.1 |
|
|
| (3.0 | ) |
| n.m. |
|
| n.m. |
| ||
Income tax |
|
| (110.2 | ) |
|
| 263.3 |
|
|
| (34.6 | ) |
| n.m. |
|
|
| (68.6 | )% | |
Profit for the period |
|
| 291.2 |
|
|
| (567.7 | ) |
|
| 146.7 |
|
| n.m. |
|
|
| (49.6 | )% | |
ROAE |
|
| 19.8 | % |
| n.m. |
|
|
| 10.1 | % |
|
|
|
|
|
|
|
| |
Efficiency ratio |
|
| 39.2 | % |
|
| 41.4 | % |
|
| 35.2 | % |
|
|
|
|
|
|
|
|
NIM |
|
| 5.8 | % |
|
| 4.0 | % |
|
| 4.6 | % |
|
|
|
|
|
|
|
|
NIM on loans |
|
| 9.0 | % |
|
| 6.8 | % |
|
| 8.0 | % |
|
|
|
|
|
|
|
|
INTEREST-EARNING ASSETS
Interbank’s interest-earning assets reached S/ 64,031.6 million as of September 30, 2020, an increase of 8.3% QoQ and 30.9% YoY.
The quarterly growth in interest-earning assets was attributed to increases of 18.1% in cash and due from banks and inter-bank funds, 11.4% in financial investments and 4.1% in loans. Growth in cash and due from banks and inter-bank funds was due to higher reserve requirements and deposits at the Central Bank, partially offset by lower restricted funds. The increase in financial investments was mainly a result of higher balances of sovereign bonds, Central Bank Certificates of Deposits (CDBCR) and global bonds, partially compensated by reductions in corporate bonds from financial and non-financial institutions.
The YoY increase in interest-earning assets was attributed to growth of 67.5% in financial investments, 63.0% in cash and due from banks and inter-bank funds, and 15.9% in loans. The increase in financial investments was mainly due to higher volumes of sovereign bonds, global bonds, corporate bonds from financial institutions and CDBCR. Growth in cash and due from banks and inter-bank funds resulted from higher deposits and reserve requirements at the Central Bank.
5
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
|
| 10,025.3 |
|
|
| 13,830.4 |
|
|
| 16,338.4 |
|
|
| 18.1 | % |
|
| 63.0 | % | |
Financial investments |
|
| 5,056.4 |
|
|
| 7,605.2 |
|
|
| 8,470.4 |
|
|
| 11.4 | % |
|
| 67.5 | % |
Loans |
|
| 33,846.1 |
|
|
| 37,668.1 |
|
|
| 39,222.8 |
|
|
| 4.1 | % |
|
| 15.9 | % |
Total interest-earning assets |
|
| 48,927.8 |
|
|
| 59,103.7 |
|
|
| 64,031.6 |
|
|
| 8.3 | % |
|
| 30.9 | % |
Loan portfolio
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
Performing loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
| 18,575.5 |
|
|
| 18,706.1 |
|
|
| 18,272.0 |
|
|
| (2.3 | )% |
|
| (1.6 | )% |
Commercial |
|
| 15,263.8 |
|
|
| 20,221.2 |
|
|
| 22,269.3 |
|
|
| 10.1 | % |
|
| 45.9 | % |
Total performing loans |
|
| 33,839.3 |
|
|
| 38,927.4 |
|
|
| 40,541.2 |
|
|
| 4.1 | % |
|
| 19.8 | % |
Restructured and refinanced loans |
|
| 223.5 |
|
|
| 258.6 |
|
|
| 272.8 |
|
|
| 5.5 | % |
|
| 22.1 | % |
Past due loans |
|
| 975.2 |
|
|
| 977.6 |
|
|
| 1,147.0 |
|
|
| 17.3 | % |
|
| 17.6 | % |
Total gross loans |
|
| 35,037.9 |
|
|
| 40,163.7 |
|
|
| 41,961.0 |
|
|
| 4.5 | % |
|
| 19.8 | % |
Add (less) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued and deferred interest |
|
| 273.1 |
|
|
| 235.6 |
|
|
| 378.0 |
|
|
| 60.4 | % |
|
| 38.4 | % |
Impairment allowance for loans |
|
| (1,464.9 | ) |
|
| (2,731.2 | ) |
|
| (3,116.2 | ) |
|
| 14.1 | % |
| n.m. |
| |
Total direct loans, net |
|
| 33,846.1 |
|
|
| 37,668.1 |
|
|
| 39,222.8 |
|
|
| 4.1 | % |
|
| 15.9 | % |
The QoQ and YoY increase in the loan portfolio was mostly explained by disbursements related to the origination of commercial loans under the Reactiva Peru Program. As of September 30, 2020, these loans amounted S/ 6,709.4 million, of which S/ 2,876.8 million were disbursed during 3Q20.
Performing loans increased 4.1% QoQ due to 10.1% growth in commercial loans, partially offset by a 2.3% reduction in retail loans. Excluding the effect of the Reactiva Peru Program in the comparing periods, performing loans and commercial loans would have decreased 3.6% and 5.1% QoQ, respectively.
The quarterly increase in commercial loans was mainly explained by higher short and medium-term lending, mostly to small and medium-sized companies. As mentioned above, this increase was driven by the bank’s participation in the Reactiva Peru Program.
The QoQ decrease in retail loans was due to reductions of 7.4% in credit cards and 2.2% in other consumer loans, partially offset by 1.3% growth in mortgages. Reduction in other consumer loans was explained by lower cash loans and vehicle loans, while the increase in mortgages, by higher demand in traditional products.
Performing loans grew 19.8% YoY explained by a 45.9% increase in commercial loans, partially compensated by a 1.6% reduction in retail loans. Excluding the effect of the Reactiva Peru Program, performing loans would have maintained relatively stable YoY, while commercial loans would have grown 1.9% YoY.
The annual increase in commercial loans was mainly explained by higher short and medium-term lending in all client segments.
The YoY decrease in retail loans was due to a 13.5% reduction in credit cards, partially compensated by increases of 6.4% in mortgages and 0.5% in other consumer loans. Growth in mortgages was due to a higher demand in both traditional and MiVivienda products, while the increase in other consumer loans was a result of higher payroll deduction loans and cash loans.
It is worth mentioning that, as of September 30, 2020, and in line with the measures implemented to help our customers to overcome the impacts from the COVID-19 pandemic, 447 thousand clients had their loans rescheduled, out of which approximately 431 thousand were retail clients and around 17 thousand, commercial clients. Loans that were subject to some kind of rescheduling represented S/ 11.8 billion or 27.9% of our total portfolio. Of these, S/ 8.3 billion were retail loans (42.4% of total retail loans), and the remaining S/ 3.5 billion were commercial loans (15.4% of total commercial loans).
6
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Credit cards |
|
| 5,662.4 |
|
|
| 5,285.0 |
|
|
| 4,895.4 |
|
|
| (7.4 | )% |
|
| (13.5 | )% |
Other consumer |
|
| 6,189.2 |
|
|
| 6,360.5 |
|
|
| 6,221.2 |
|
|
| (2.2 | )% |
|
| 0.5 | % |
Total consumer loans |
|
| 11,851.6 |
|
|
| 11,645.5 |
|
|
| 11,116.6 |
|
|
| (4.5 | )% |
|
| (6.2 | )% |
Mortgages |
|
| 6,723.8 |
|
|
| 7,060.6 |
|
|
| 7,155.4 |
|
|
| 1.3 | % |
|
| 6.4 | % |
Total retail loans |
|
| 18,575.5 |
|
|
| 18,706.1 |
|
|
| 18,272.0 |
|
|
| (2.3 | )% |
|
| (1.6 | )% |
FUNDING STRUCTURE
Funding structure
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
Deposits and obligations |
|
| 33,741.8 |
|
|
| 41,449.4 |
|
|
| 42,538.2 |
|
|
| 2.6 | % |
|
| 26.1 | % |
Due to banks and correspondents and inter-bank funds |
|
| 4,125.9 |
|
|
| 7,681.6 |
|
|
| 10,254.6 |
|
|
| 33.5 | % |
| n.m. |
| |
Bonds, notes and other obligations |
|
| 7,226.5 |
|
|
| 6,336.9 |
|
|
| 6,412.2 |
|
|
| 1.2 | % |
|
| (11.3 | )% |
Total |
|
| 45,094.3 |
|
|
| 55,467.9 |
|
|
| 59,205.0 |
|
|
| 6.7 | % |
|
| 31.3 | % |
% of funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 74.9 | % |
|
| 74.7 | % |
|
| 71.9 | % |
|
|
|
|
|
|
|
|
Due to banks and correspondents and inter-bank funds |
|
| 9.1 | % |
|
| 13.9 | % |
|
| 17.3 | % |
|
|
|
|
|
|
|
|
Bonds, notes and other obligations |
|
| 16.0 | % |
|
| 11.4 | % |
|
| 10.8 | % |
|
|
|
|
|
|
|
|
Interbank's funding base continued to grow strongly on inflows of long-term debt provided by the Central Bank, associated with the bank’s active involvement in the auctions of funds for the Reactiva Peru Program. As of September 30, 2020, the balance of such special funding was S/ 5,713.6 million, of which S/ 3,180.1 million were recorded in 3Q20.
The bank’s total funding base increased 6.7% QoQ, below the performance of interest-earning assets. This was explained by growth of 33.5% in due to banks and correspondents and inter-bank funds, 2.6% in deposits and obligations, and 1.2% in bonds, notes and other obligations. Excluding the effect of the Reactiva Peru Program’s funds, the bank’s total funding base would have increased 1.1% QoQ, while due to banks and correspondents and inter-bank funds would have decreased 11.8%.
The quarterly increase in due to banks and correspondents and inter-bank funds was the result of higher long-term funding from the Central Bank, associated with the bank’s participation in the auctions of funds for the Reactiva Peru Program. This effect was partially offset by lower funding from correspondent banks abroad and COFIDE.
The QoQ increase in deposits and obligations was mainly due to increases of 8.0% in commercial deposits and 3.9% in retail deposits, partially compensated by a 12.1% decrease in institutional deposits.
The quarterly growth in bonds, notes and other obligations was mainly attributable to a 1.7% depreciation of the foreign exchange rate with respect to 2Q20.
The bank’s total funding base increased 31.3% YoY, above the annual growth in interest-earning assets, and was explained by increases of more than two-fold in due to banks and correspondents and inter-bank funds, and 26.1% in deposits and obligations, partially compensated by an 11.3% reduction in bonds, notes and other obligations. Excluding the effect of the Reactiva Peru Program’s funds, the bank’s total funding base would have increased 18.6% YoY, while due to banks and correspondents and inter-bank funds, 10.1%.
The YoY increase in due to banks and correspondents and inter-bank funds was the result of higher long-term funding from the Central Bank, associated with the bank’s participation in the auctions of funds for the Reactiva Peru Program. Higher funding from correspondent banks abroad and COFIDE also contributed to the growth in due to banks and correspondents and inter-bank funds when compared to 3Q19.
7
The annual growth in deposits and obligations was mainly explained by increases of 32.3% in institutional deposits, 27.7% in retail deposits and 22.4% in commercial deposits.
The YoY decrease in bonds, notes and other obligations was mainly attributable to the execution of (i) an optional redemption of the prevailing “5.75% Senior Notes due 2020” corporate bonds in October 2019; and (ii) an optional redemption of the prevailing hybrid bonds “8.50% Junior Subordinated Notes due 2070” for US$ 200 million in April 2020. It is worth mentioning that these effects were partially compensated by the placement in the international market of a US$ 300 million subordinated bond in June 2020 and by a 6.3% depreciation of the foreign exchange rate with respect to 3Q19.
As of September 30, 2020, the proportion of deposits and obligations to total funding was 71.9%, lower than the 74.9% reported as of September 30, 2019. Likewise, the proportion of institutional deposits to total deposits increased from 14.1% as of September 30, 2019 to 14.8% as of September 30, 2020.
Breakdown of deposits
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Retail |
|
| 15,316.3 |
|
|
| 18,834.4 |
|
|
| 19,561.2 |
|
|
| 3.9 | % |
|
| 27.7 | % |
Commercial |
|
| 13,299.7 |
|
|
| 15,067.7 |
|
|
| 16,272.8 |
|
|
| 8.0 | % |
|
| 22.4 | % |
Institutional |
|
| 4,771.5 |
|
|
| 7,179.8 |
|
|
| 6,313.7 |
|
|
| (12.1 | )% |
|
| 32.3 | % |
Other |
|
| 354.3 |
|
|
| 367.6 |
|
|
| 390.5 |
|
|
| 6.2 | % |
|
| 10.2 | % |
Total |
|
| 33,741.8 |
|
|
| 41,449.4 |
|
|
| 42,538.2 |
|
|
| 2.6 | % |
|
| 26.1 | % |
By type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
| 10,922.8 |
|
|
| 12,660.8 |
|
|
| 13,801.8 |
|
|
| 9.0 | % |
|
| 26.4 | % |
Savings |
|
| 11,708.9 |
|
|
| 15,232.8 |
|
|
| 16,067.0 |
|
|
| 5.5 | % |
|
| 37.2 | % |
Time |
|
| 11,095.9 |
|
|
| 13,551.2 |
|
|
| 12,655.4 |
|
|
| (6.6 | )% |
|
| 14.1 | % |
Other |
|
| 14.2 |
|
|
| 4.7 |
|
|
| 14.0 |
|
| n.m. |
|
|
| (1.4 | )% | |
Total |
|
| 33,741.8 |
|
|
| 41,449.4 |
|
|
| 42,538.2 |
|
|
| 2.6 | % |
|
| 26.1 | % |
NET INTEREST AND SIMILAR INCOME
Net interest and similar income
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 1,038.2 |
|
|
| 853.1 |
|
|
| 987.0 |
|
|
| 15.7 | % |
|
| (4.9 | )% | |
Interest and similar expense |
|
| (314.6 | ) |
|
| (273.8 | ) |
|
| (244.8 | ) |
|
| (10.6 | )% |
|
| (22.2 | )% |
Net interest and similar income |
|
| 723.6 |
|
|
| 579.3 |
|
|
| 742.1 |
|
|
| 28.1 | % |
|
| 2.6 | % |
NIM |
|
| 5.8 | % |
|
| 4.0 | % |
|
| 4.6 | % |
|
| 60 | bps |
|
| -120 | bps |
Interest and similar income
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Due from banks and inter-bank funds |
|
| 29.0 |
|
|
| 2.0 |
|
|
| 3.9 |
|
|
| 93.2 | % |
|
| (86.4 | )% |
Financial investments |
|
| 47.7 |
|
|
| 57.7 |
|
|
| 64.8 |
|
|
| 12.3 | % |
|
| 35.8 | % |
Loans |
|
| 961.5 |
|
|
| 793.4 |
|
|
| 918.2 |
|
|
| 15.7 | % |
|
| (4.5 | )% |
Total Interest and similar income |
|
| 1,038.2 |
|
|
| 853.1 |
|
|
| 987.0 |
|
|
| 15.7 | % |
|
| (4.9 | )% |
Average interest-earning assets |
|
| 49,953.6 |
|
|
| 57,564.2 |
|
|
| 64,491.4 |
|
|
| 12.0 | % |
|
| 29.1 | % |
Average yield on assets (annualized) |
|
| 8.3 | % |
|
| 5.9 | % |
|
| 6.1 | % |
|
| 20 | bps |
|
| -220 | bps |
8
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Deposits and obligations |
|
| (177.9 | ) |
|
| (145.6 | ) |
|
| (113.6 | ) |
|
| (22.0 | )% |
|
| (36.1 | )% |
Due to banks and correspondents and inter-bank funds |
|
| (43.0 | ) |
|
| (47.6 | ) |
|
| (45.5 | ) |
|
| (4.5 | )% |
|
| 5.7 | % |
Bonds, notes and other obligations |
|
| (93.7 | ) |
|
| (80.6 | ) |
|
| (85.7 | ) |
|
| 6.4 | % |
|
| (8.5 | )% |
Total Interest and similar expense |
|
| (314.6 | ) |
|
| (273.8 | ) |
|
| (244.8 | ) |
|
| (10.6 | )% |
|
| (22.2 | )% |
Average interest-bearing liabilities |
|
| 44,044.8 |
|
|
| 50,725.0 |
|
|
| 57,336.5 |
|
|
| 13.0 | % |
|
| 30.2 | % |
Average cost of funding (annualized) |
|
| 2.9 | % |
|
| 2.2 | % |
|
| 1.7 | % |
|
| -50 | bps |
|
| -120 | bps |
QoQ Performance
Net interest and similar income grew 28.1% QoQ due to a 15.7% increase in interest and similar income and a 10.6% decrease in interest and similar expense. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic for S/ 136.6 million in 2Q20 and S/ 14.5 million in 3Q20, interest and similar income, and net interest and similar income would have grown 1.2% and 5.7% QoQ, respectively.
The higher interest and similar income was due to growth of 93.2% in interest on due from banks and inter-bank funds, 15.7% in interest on loans and 12.3% in interest on financial investments.
Interest on due from banks and inter-bank funds grew S/ 1.9 million, or 93.2% QoQ, explained by a slight increase in the nominal average rate and 25.0% growth in the average volume. The increase in the nominal average rate was due to higher returns on deposits at the Central Bank, while the growth in the average volume, to higher deposits and reserve funds at the Central Bank.
Interest on loans increased S/ 124.8 million, or 15.7% QoQ, as the result of growth of 70 basis points in the average yield and 7.0% in the average loan portfolio. However, excluding the previously mentioned impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic in 2Q20 and 3Q20, interest on loans would have grown 0.3% QoQ.
The higher average rate on loans, from 8.2% in 2Q20 to 8.9% in 3Q20, was explained by a yield growth of 210 basis points in retail loans, partially compensated by a 20 basis point reduction in commercial loans. The increase in retail loans was mainly explained by higher rates on credit cards and mortgages, partially compensated by lower average yields on other consumer loans. In the commercial portfolio, rates decreased in trade finance loans and short and medium-term loans, partially compensated by an increase in leasing operations. 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 pandemic, a portion of the interest on loans to be recorded between April and September 2020 was rescheduled, affecting the average yield on loans in 2Q20 and 3Q20. Additionally, the incidence of the low-return loans offered to a number of commercial clients as part of the Reactiva Peru Program also had an impact on the average rate on loans.
The higher average volume of loans was attributed to a 16.8% increase in commercial loans, partially offset by a 2.1% decrease in retail loans. In the commercial portfolio, the higher average volume was mostly due to 27.5% growth in short and medium-term loans, attributed to the disbursement of loans under the Reactiva Peru Program. In the retail portfolio, average volumes decreased due to reductions of 6.7% in credit cards and 1.3% in other consumer loans, partially offset by a 0.9% increase in mortgages.
Interest on financial investments increased S/ 7.1 million, or 12.3% QoQ, due to 17.7% growth in the average volume, partially compensated by a 20 basis point reduction in the average yield. The increase in the average volume was a consequence of higher investments in sovereign bonds, global bonds and CDBCR, partially offset by lower balances of corporate bonds from financial and non-financial institutions. The lower average yield was due to decreases in returns on CDBCR, corporate bonds from non-financial institutions, global bonds and sovereign bonds, partially offset by higher returns on corporate bonds from financial institutions.
The nominal average yield on interest-earning assets grew 20 basis points QoQ, from 5.9% in 2Q20 to 6.1% in 3Q20, as a consequence of the higher returns on loans and due from banks and inter-bank funds. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic, the nominal average yield on interest-earning assets would have decreased 70 basis points, from 6.9% in 2Q20 to 6.2% in 3Q20.
9
The lower interest and similar expense was due to reductions of 22.0% in interest on deposits and obligations, and 4.5% in interest on due to banks and correspondents, partially compensated by a 6.4% increase in interest on bonds, notes and other obligations.
The quarterly decrease in interest on deposits and obligations was due to a 40 basis point reduction in the average cost, partially compensated by 9.8% growth in the average volume. The decrease in the average cost was due to lower rates paid to institutional, commercial and retail deposits, associated with the low interest rate environment. The higher average volume was explained by growth in all segments of deposits. By currency, average balances of soles-denominated deposits grew 11.3% while average dollar-denominated deposits increased 6.5%.
Interest on due to banks and correspondents decreased S/ 2.1 million, or 4.5% QoQ, due to a 100 basis point reduction in the average cost, partially offset by 40.5% growth in the average volume. On one hand, the lower average cost was due to reductions in rates paid to funding provided by the Central Bank in the context of the Reactiva Peru Program, partially offset by higher rates on funds from correspondent banks abroad and COFIDE. On the other hand, the increase in the average volume was mostly attributed to higher funding from the Central Bank, related to the bank’s participation in the Reactiva Peru Program.
The increase in interest on bonds, notes and other obligations was mainly due to 4.8% growth in the average volume of these obligations, in part explained by a 2.3% depreciation of the average foreign exchange rate with respect to 2Q20.
The average cost of funding decreased 50 basis points QoQ, from 2.2% in 2Q20 to 1.7% in 3Q20, in line with the lower implicit cost of deposits and due to banks and correspondents.
As a result of the above, net interest margin was 4.6% in 3Q20, 60 basis points higher than the 4.0% reported in 2Q20. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic, net interest margin would have decreased 30 basis points, from 5.0% in 2Q20 to 4.7% in 3Q20.
YoY Performance
Net interest and similar income increased 2.6% YoY due to a 22.2% reduction in interest and similar expense, partially offset by a 4.9% decrease in interest and similar income. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic for S/ 14.5 million in 3Q20, interest and similar income would have decreased 3.5% YoY, and net interest and similar income would have grown 4.6% YoY.
The lower interest and similar expense was due to reductions of 36.1% in interest on deposits and obligations, and 8.5% in interest on bonds, notes and other obligations, partially offset by a 5.7% increase in interest on due to banks and correspondents.
Interest on deposits and obligations decreased S/ 64.3 million, or 36.1% YoY, explained by a 100 basis point reduction in the average cost, from 2.1% in 3Q19 to 1.1% in 3Q20, partially offset by 25.6% growth in the average volume. The lower average cost was due to reductions in rates paid to institutional, commercial and retail deposits. Growth in volumes came across all client segments. By currency, average balances of soles-denominated deposits increased 35.7% while average dollar-denominated deposits grew 8.2%.
The reduction in interest on bonds, notes and other obligations was the result of higher efficiencies in this component of interest-bearing liabilities, associated with liability management transactions executed throughout 2020, such as the redemption of international hybrid bonds in April 2020, partially compensated by the issuance of a new international subordinated bond in July 2020. Additionally, the maturity of Certificates of Deposit for S/ 150 million in March 2020 also contributed to the lower interest expense of this component of the funding base.
The S/ 2.5 million, or 5.7% YoY, increase in interest on due to banks and correspondents was the result of a more than two-fold growth in the average volume, partially compensated by a 210 basis point reduction in the average cost, from 4.1% in 3Q19 to 2.0% in 3Q20. The increase in the average volume was due to higher funding provided by the Central Bank, related to the bank’s participation in the Reactiva Peru Program, while the reduction in the average cost, to lower rates paid to correspondent banks abroad.
The average cost of funding decreased 120 basis points YoY, from 2.9% in 3Q19 to 1.7% in 3Q20, in line with the lower implicit cost of all interest-bearing liabilities.
The lower interest and similar income was due to reductions of 86.4% in interest on due from banks and inter-bank funds, and 4.5% in interest on loans, partially offset by 35.8% growth in interest on financial investments.
10
Interest on due from banks and inter-bank funds decreased S/ 25.1 million, or 86.4% YoY, explained by a 110 basis point reduction in the average yield, partially compensated by 49.7% growth in the average volume. On one hand, the decrease in the nominal average rate was mainly related to a lower rate on inter-bank funds, as well as to lower returns on deposits and reserve funds at the Central Bank. On the other hand, the increase in the average volume was explained by higher deposits and reserve funds at the Central Bank, partially offset by a lower average balance of inter-bank funds.
Interest on loans decreased S/ 43.3 million, or 4.5% YoY, due to a 220 basis point reduction in the average yield, partially offset by 19.2% growth in the average volume. However, excluding the previously mentioned impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic in 3Q20, interest on loans would have decreased 3.0% YoY.
The annual decrease in the average rate on loans, from 11.1% in 3Q19 to 8.9% in 3Q20, was due to reductions of 160 basis points in retail loans and 150 basis points in commercial loans. The decrease in retail loans was explained by lower rates on credit cards and other consumer loans, as yields on mortgages remained relatively stable. In the commercial portfolio, rates decreased on all types of 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 pandemic, a portion of the interest on loans to be recorded between April and September 2020 was rescheduled, affecting the average yield on loans in 3Q20. Additionally, the incidence of the low-return loans offered to a number of commercial clients as part of the Reactiva Peru Program also had an impact on the average rate on loans.
The higher average volume of loans was attributed to growth of 40.3% in commercial loans and 2.1% in retail loans. In the commercial portfolio, the higher average volume was mainly due to a 67.7% increase in short and medium-term loans, attributed to the disbursement of loans under the Reactiva Peru Program. In the retail portfolio, average volumes grew mainly due to increases of 7.0% in mortgages and 4.4% in other consumer loans, partially compensated by a 6.1% decrease in credit cards.
Interest on financial investments increased S/ 17.1 million, or 35.8% YoY, due to 55.9% growth in the average volume, partially offset by a 50 basis point reduction in the average yield. The increase in the average volume was mainly the result of higher average balances of sovereign bonds, global bonds and corporate bonds from financial institutions. The decrease in the nominal average rate, from 3.7% in 3Q19 to 3.2% in 3Q20, was mainly explained by lower returns on global bonds, corporate bonds from non-financial institutions, sovereign bonds and bonds from financial institutions.
The nominal average yield on interest-earning assets decreased 220 basis points YoY, from 8.3% in 3Q19 to 6.1% in 3Q20, in line with the lower returns on all components of interest-earning assets. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic, the nominal average yield on interest-earning assets would have decreased 210 basis points YoY, from 8.3% in 3Q19 to 6.2% in 3Q20.
As a result of the above, net interest margin was 4.6% in 3Q20, 120 basis points lower than the 5.8% reported in 3Q19. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic, net interest margin would have decreased 110 basis points YoY, from 5.8% in 3Q19 to 4.7% in 3Q20.
IMPAIRMENT LOSS ON LOANS, NET OF RECOVERIES
Impairment loss on loans, net of recoveries decreased 64.1% QoQ and grew more than two-fold YoY.
The quarterly reduction was due to a base effect related to the adjustments of the bank’s expected loss models to address the impact of the COVID-19 pandemic, which were first implemented in 2Q20. These adjustments included: (i) the update of macroeconomic variables used in our forward-looking risk models; (ii) the migration within stages of retail exposures subject to multiple installments or total debt rescheduling; and (iii) a case-by-case risk analysis within our commercial loan book.
The annual increase in provisions was explained by higher requirements in cash loans, credit cards and mortgages, as well as in all segments of the commercial loan book. All this was mainly attributed to the adjustments of the bank’s expected loss models to address the impact of the COVID-19 pandemic.
As a result of the above, the annualized ratio of impairment loss on loans to average loans was 4.5% in 3Q20, lower than the 13.4% reported in 2Q20, but higher than the 2.6% registered in 3Q19.
11
Impairment loss on loans, net of recoveries
S/ million |
| 3Q19 |
|
| 3Q19 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Impairment loss on loans, net of recoveries |
|
| (223.6 | ) |
|
| (1,290.5 | ) |
|
| (463.2 | ) |
|
| (64.1 | )% |
| n.m. |
| |
Impairment loss on loans/average gross loans |
|
| 2.6 | % |
|
| 13.4 | % |
|
| 4.5 | % |
|
| -890 | bps |
|
| 190 | bps |
NPL ratio (at end of period) |
|
| 3.0 | % |
|
| 3.4 | % |
|
| 3.4 | % |
|
| 0 | bps |
|
| 40 | bps |
NPL coverage ratio (at end of period) |
|
| 126.4 | % |
|
| 182.7 | % |
|
| 196.6 | % |
| n.m. |
|
| n.m. |
| ||
Impairment allowance for loans |
|
| 1,464.9 |
|
|
| 2,731.2 |
|
|
| 3,116.2 |
|
|
| 14.1 | % |
| n.m. |
|
The NPL ratio remained stable QoQ and grew 40 basis points YoY, to 3.4%. The annual growth was mainly due to increases in stage 3 and refinanced exposures in credit cards, cash loans and mortgages. However, including the adjustments of the bank’s expected loss models to address the impact of the COVID-19 pandemic, the NPL ratio would have resulted in 5.7% as of September 30, 2020. The higher NPL ratio when considering the adjustments of the expected loss models would result from the reclassification of a larger portion of the bank’s total exposure to stage 3.
Furthermore, the NPL coverage ratio was 196.6% as of September 30, 2020, higher than the 182.7% reported as of June 30, 2020, and the 126.4% registered as of September 30, 2019. NPL coverage ratio in credit cards was 328.6% as of September 30, 2020. It is worth noting that, including the previously mentioned adjustments of the bank’s expected loss models, the NPL coverage ratio would have resulted in 119.1% as of September 30, 2020.
FEE INCOME FROM FINANCIAL SERVICES, NET
Net fee income from financial services grew S/ 40.1 million QoQ, or 35.5%, mainly explained by increases of S/ 19.4 million in commissions from credit card services, S/ 16.7 million in fees from maintenance and mailing of accounts, transfer fees and commissions on debit card services, and S/ 11.6 million in commissions from banking services.
Net fee income from financial services decreased S/ 60.3 million YoY, or 28.2%, mainly due to reductions of S/ 33.2 million in commissions from credit card services, S/ 14.7 million in commissions from banking services, and S/ 11.4 million in fees from maintenance and mailing of accounts, transfer fees and commissions on debit card services.
Fee income from financial services, net
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions from credit card services |
|
| 101.4 |
|
|
| 48.8 |
|
|
| 68.2 |
|
|
| 39.7 | % |
|
| (32.8 | )% |
Commissions from banking services |
|
| 84.4 |
|
|
| 58.1 |
|
|
| 69.7 |
|
|
| 19.8 | % |
|
| (17.5 | )% |
Maintenance and mailing of accounts, transfer fees and commissions on debit card services |
|
| 62.1 |
|
|
| 34.0 |
|
|
| 50.7 |
|
|
| 49.0 | % |
|
| (18.3 | )% |
Fees from indirect loans |
|
| 14.7 |
|
|
| 11.4 |
|
|
| 13.3 |
|
|
| 16.7 | % |
|
| (9.1 | )% |
Collection services |
|
| 10.8 |
|
|
| 8.4 |
|
|
| 11.4 |
|
|
| 35.3 | % |
|
| 5.9 | % |
Other |
|
| 9.6 |
|
|
| 11.3 |
|
|
| 7.9 |
|
|
| (29.9 | )% |
|
| (17.2 | )% |
Total income |
|
| 282.9 |
|
|
| 172.0 |
|
|
| 221.1 |
|
|
| 28.5 | % |
|
| (21.8 | )% |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance |
|
| (24.0 | ) |
|
| (24.8 | ) |
|
| (24.3 | ) |
|
| (2.1 | )% |
|
| 1.2 | % |
Fees paid to foreign banks |
|
| (4.7 | ) |
|
| (3.0 | ) |
|
| (4.0 | ) |
|
| 36.7 | % |
|
| (13.4 | )% |
Other |
|
| (40.8 | ) |
|
| (31.2 | ) |
|
| (39.7 | ) |
|
| 26.9 | % |
|
| (2.7 | )% |
Total expenses |
|
| (69.4 | ) |
|
| (59.0 | ) |
|
| (68.0 | ) |
|
| 15.2 | % |
|
| (2.1 | )% |
Fee income from financial services, net |
|
| 213.4 |
|
|
| 113.0 |
|
|
| 153.1 |
|
|
| 35.5 | % |
|
| (28.2 | )% |
OTHER INCOME
Other income increased S/ 17.5 million QoQ, mainly explained by extraordinary revenue items registered in 3Q20, partially offset by a reduction in net gain on sale of financial investments.
12
Other income grew S/ 21.1 million YoY mainly due to a S/ 21.0 million increase in net gain on sale of financial investments.
Other income
| (1) | Includes S/ 63.7 million of net gain (loss) on financial assets at fair value though profit or loss (derivatives) and S/ 7.3 million of net gain on foreign exchange transactions. |
OTHER EXPENSES
Other expenses increased S/ 31.0 million QoQ, or 9.2%, but decreased S/ 44.5 million YoY, or 10.8%.
On one hand, the quarterly growth in other expenses was mainly explained by a moderate recovery in activity, translated into higher third-party charges within administrative expenses. On the other hand, the annual decrease was the result of reductions in salaries and employee benefits, and marketing and credit card expenses, driven by cost containment measures implemented to offset the impacts of the COVID-19 pandemic on revenues.
The efficiency ratio was 35.2% in 3Q20, below the 41.4% reported in 2Q20 and the 39.2% registered in 3Q19. However, excluding the impact from the modification of contractual cash flows due to the loan rescheduling schemes offered to customers affected by the COVID-19 pandemic in the corresponding periods, the efficiency ratio would have been 35.3% in 2Q20 and 34.7% in 3Q20.
Other expenses
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| (169.5 | ) |
|
| (127.4 | ) |
|
| (128.3 | ) |
|
| 0.7 | % |
|
| (24.3 | )% | |
Administrative expenses |
|
| (177.7 | ) |
|
| (144.8 | ) |
|
| (173.0 | ) |
|
| 19.4 | % |
|
| (2.6 | )% |
Depreciation and amortization |
|
| (58.6 | ) |
|
| (56.8 | ) |
|
| (55.9 | ) |
|
| (1.6 | )% |
|
| (4.6 | )% |
Other |
|
| (6.0 | ) |
|
| (7.4 | ) |
|
| (10.1 | ) |
|
| 37.7 | % |
|
| 68.6 | % |
Total other expenses |
|
| (411.8 | ) |
|
| (336.3 | ) |
|
| (367.3 | ) |
|
| 9.2 | % |
|
| (10.8 | )% |
Efficiency ratio |
|
| 39.2 | % |
|
| 41.4 | % |
|
| 35.2 | % |
|
| -620 | bps |
|
| -400 | bps |
REGULATORY CAPITAL
The ratio of regulatory capital to risk-weighted assets (RWA) was 17.0% as of September 30, 2020, higher than the 14.7% reported as of June 30, 2020, and the 15.4% registered as of September 30, 2019.
In 3Q20, regulatory capital grew 13.7% QoQ, mainly explained by the issuance of US$300 million subordinated bonds in July 2020. Meanwhile, RWA decreased 1.7% QoQ due to lower capital requirements for credit risk, given the reduction in retail loans.
The annual increase in the total capital ratio was due to 16.0% growth in regulatory capital, partially offset by a 5.3% increase in RWA. Regulatory capital increased as a result of the addition of S/ 852.0 million in capital, reserves and earnings with capitalization agreement during the last twelve months, as well as the “4.00% Subordinated Notes due 2030” for US$300 million issued in July 2020. These effects were partially compensated by the execution of an optional redemption of US$ 200 million hybrid bonds in April 2020. 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.
As of September 30, 2020, Interbank’s capital ratio of 17.0% was significantly higher than its risk-adjusted minimum capital ratio requirement, established at 10.6%. The minimum regulatory capital ratio requirement was 10.0%, while the additional capital requirement for Interbank was 0.6% as of September 30, 2020. Furthermore, Core Equity Tier 1 (CET1) was 11.4% as of September 30, 2020, in line with that reported as of September 30, 2019.
13
S/ million |
| 09.30.19 |
|
| 06.30.20 |
|
| 09.30.20 |
|
| %chg 09.30.20/ 06.30.20 |
|
| %chg 09.30.20/ 09.30.19 |
| |||||
Tier I capital |
|
| 5,552.3 |
|
|
| 5,932.7 |
|
|
| 5,932.3 |
|
|
| (0.0 | )% |
|
| 6.8 | % |
Tier II capital |
|
| 2,010.3 |
|
|
| 1,780.3 |
|
|
| 2,840.2 |
|
|
| 59.5 | % |
|
| 41.3 | % |
Total regulatory capital |
|
| 7,562.5 |
|
|
| 7,712.9 |
|
|
| 8,772.6 |
|
|
| 13.7 | % |
|
| 16.0 | % |
Risk-weighted assets (RWA) |
|
| 49,088.1 |
|
|
| 52,552.2 |
|
|
| 51,680.2 |
|
|
| (1.7 | )% |
|
| 5.3 | % |
Total capital ratio |
|
| 15.4 | % |
|
| 14.7 | % |
|
| 17.0 | % |
|
| 230 | bps |
|
| 160 | bps |
Tier I capital / RWA |
|
| 11.3 | % |
|
| 11.3 | % |
|
| 11.5 | % |
|
| 20 | bps |
|
| 20 | bps |
CET1 |
|
| 11.4 | % |
|
| 11.1 | % |
|
| 11.4 | % |
|
| 30 | bps |
|
| 0 | bps |
14
SUMMARY
Interseguro’s profits reached S/ 66.5 million in 3Q20, an increase of S/ 8.0 million QoQ and S/ 32.5 million YoY.
The quarterly growth was mainly explained by a S/ 9.9 million increase in net interest and similar income, as well as by improvements of S/ 2.8 million in translation result and S/ 2.6 million in loss due to impairment of financial investments. These factors were partially offset by an S/ 8.2 million growth in other expenses.
The annual increase in net profit was mainly a result of growth of S/ 9.6 million in net interest and similar income, and S/ 7.6 million in other income, in addition to a S/ 10.9 million decrease in other expenses and a S/ 10.2 million improvement in translation result. These effects were partially offset by a decrease of S/ 3.6 million in total premiums earned minus claims and benefits, and a worsening of S/ 1.9 million in loss due to impairment of financial investments.
Insurance Segment’s P&L Statement
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 148.0 |
|
|
| 150.5 |
|
|
| 160.5 |
|
|
| 6.7 | % |
|
| 8.5 | % |
Interest and similar expenses |
|
| (19.3 | ) |
|
| (22.1 | ) |
|
| (22.3 | ) |
|
| 0.8 | % |
|
| 15.4 | % |
Net Interest and similar income |
|
| 128.7 |
|
|
| 128.4 |
|
|
| 138.3 |
|
|
| 7.7 | % |
|
| 7.4 | % |
Recovery (loss) due to impairment of financial investments |
|
| (0.6 | ) |
|
| (5.1 | ) |
|
| (2.5 | ) |
|
| -51.2 | % |
| n.m. |
| |
Net Interest and similar income after impairment loss |
|
| 128.0 |
|
|
| 123.3 |
|
|
| 135.8 |
|
|
| 10.1 | % |
|
| 6.0 | % |
Fee income from financial services, net |
|
| (1.2 | ) |
|
| (1.3 | ) |
|
| (1.5 | ) |
|
| 19.3 | % |
|
| 27.1 | % |
Other income |
|
| 54.9 |
|
|
| 63.6 |
|
|
| 62.5 |
|
|
| -1.6 | % |
|
| 14.0 | % |
Total premiums earned minus claims and benefits |
|
| (58.1 | ) |
|
| (63.9 | ) |
|
| (61.7 | ) |
|
| -3.4 | % |
|
| 6.3 | % |
Net premiums |
|
| 157.5 |
|
|
| 117.7 |
|
|
| 130.7 |
|
|
| 11.1 | % |
|
| -17.0 | % |
Adjustment of technical reserves |
|
| (39.5 | ) |
|
| (2.8 | ) |
|
| 17.6 |
|
| n.m. |
|
| n.m. |
| ||
Net claims and benefits incurred |
|
| (176.1 | ) |
|
| (178.7 | ) |
|
| (210.0 | ) |
|
| 17.5 | % |
|
| 19.3 | % |
Other expenses |
|
| (74.8 | ) |
|
| (55.7 | ) |
|
| (63.9 | ) |
|
| 14.5 | % |
|
| -14.6 | % |
Income before translation result and income tax |
|
| 48.8 |
|
|
| 65.9 |
|
|
| 71.2 |
|
|
| 8.0 | % |
|
| 45.8 | % |
Translation result |
|
| (14.9 | ) |
|
| (7.5 | ) |
|
| (4.7 | ) |
|
| -37.5 | % |
|
| -68.6 | % |
Income tax |
|
| — |
|
|
| — |
|
|
| — |
|
| n.m. |
|
| n.m. |
| ||
Profit for the period |
|
| 34.0 |
|
|
| 58.5 |
|
|
| 66.5 |
|
|
| 13.8 | % |
|
| 96.0 | % |
ROAE |
|
| 14.9 | % |
|
| 46.3 | % |
|
| 35.7 | % |
|
|
|
|
|
|
|
|
Efficiency ratio |
|
| 12.2 | % |
|
| 10.6 | % |
|
| 9.6 | % |
|
|
|
|
|
|
|
|
15
Results from Investments (1)
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Interest and similar income |
|
| 148.0 |
|
|
| 150.5 |
|
|
| 160.5 |
|
|
| 6.7 | % |
|
| 8.5 | % |
Interest and similar expenses |
|
| (8.1 | ) |
|
| (10.9 | ) |
|
| (10.7 | ) |
|
| (2.0 | )% |
|
| 32.1 | % |
Net interest and similar income |
|
| 139.9 |
|
|
| 139.6 |
|
|
| 149.9 |
|
|
| 7.3 | % |
|
| 7.1 | % |
Recovery (loss) due to impairment of financial investments |
|
| (0.6 | ) |
|
| (5.1 | ) |
|
| (2.5 | ) |
|
| (51.2 | )% |
| n.m. |
| |
Net Interest and similar income after impairment loss |
|
| 139.3 |
|
|
| 134.5 |
|
|
| 147.4 |
|
|
| 9.6 | % |
|
| 5.8 | % |
Net gain (loss) on sale of financial investments |
|
| 17.7 |
|
|
| 34.2 |
|
|
| 25.7 |
|
|
| -24.9 | % |
|
| 45.6 | % |
Net gain (loss) on financial assets at fair value through profit or loss |
|
| 0.5 |
|
|
| 22.5 |
|
|
| 18.0 |
|
|
| (20.2 | )% |
| n.m. |
| |
Rental income |
|
| 13.7 |
|
|
| 9.7 |
|
|
| 9.6 |
|
|
| (1.9 | )% |
|
| (30.1 | )% |
Gain on sale of investment property |
|
| (4.4 | ) |
|
| — |
|
|
| — |
|
| n.m. |
|
| n.m. |
| ||
Valuation gain (loss) from investment property |
|
| 22.7 |
|
|
| (5.0 | ) |
|
| 5.4 |
|
| n.m. |
|
|
| (76.0 | )% | |
Other(1) |
|
| (3.1 | ) |
|
| (5.0 | ) |
|
| (4.6 | ) |
|
| (7.6 | )% |
|
| 49.5 | % |
Other income |
|
| 47.0 |
|
|
| 56.5 |
|
|
| 54.1 |
|
|
| (4.3 | )% |
|
| 15.0 | % |
Results from investments |
|
| 186.3 |
|
|
| 191.0 |
|
|
| 201.4 |
|
|
| 5.5 | % |
|
| 8.1 | % |
(1) | Only includes transactions related to investments. |
NET INTEREST AND SIMILAR INCOME
Net interest and similar income related to investments was S/ 149.9 million in 3Q20, an increase of S/ 10.3 million, or 7.3%, QoQ and S/ 10.0 million, or 7.1%, YoY.
The quarterly and annual performances were mainly explained by increases of S/ 10.0 million and S/ 12.5 million in interest and similar income, respectively, mostly attributed to a higher inflation rate that had a positive impact on returns of the fixed income portfolio.
RECOVERY (LOSS) DUE TO IMPAIRMENT OF FINANCIAL INVESTMENTS
Loss due to impairment of financial investments was S/ 2.5 million in 3Q20, compared to losses of S/ 5.1 million in 2Q20 and S/ 0.6 million in 3Q19.
The positive QoQ performance was mainly due to lower amortized cost of certain investments, while the YoY deterioration was explained by increases in the amortized cost of non-investment grade instruments.
OTHER INCOME
Other income related to investments was S/ 54.1 million in 3Q20, a decrease of S/ 2.4 million QoQ, but an increase of S/ 7.1 million YoY.
The quarterly result was mainly explained by decreases of S/ 8.5 million in net gain on sale of financial investments, and S/ 4.5 million in net gain on financial assets at fair value. These factors were partially compensated by a positive effect in valuation gain from investment property, related to a depreciation of the foreign exchange rate which increased the value of the dollar-denominated real estate portfolio.
The annual performance in other income was mainly due to growth in net gain on financial assets at fair value, and net gain on sale of financial investments, in addition to a favorable effect in gain on sale of investment property. These effects were partially offset by lower income in valuation gain from investment property and rental income.
16
TOTAL PREMIUMS EARNED MINUS CLAIMS AND BENEFITS
Total Premiums Earned Minus Claims And Benefits
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 157.5 |
|
|
| 117.7 |
|
|
| 130.7 |
|
|
| 11.1 | % |
|
| (17.0 | )% | |
Adjustment of technical reserves |
|
| (39.5 | ) |
|
| (2.8 | ) |
|
| 17.6 |
|
| n.m. |
|
| n.m. |
| ||
Net claims and benefits incurred |
|
| (176.1 | ) |
|
| (178.7 | ) |
|
| (210.0 | ) |
|
| 17.5 | % |
|
| 19.3 | % |
Total premiums earned minus claims and benefits |
|
| (58.1 | ) |
|
| (63.9 | ) |
|
| (61.7 | ) |
|
| (3.4 | )% |
|
| 6.3 | % |
Total premiums earned minus claims and benefits were S/ -61.7 million in 3Q20, an increase of S/ 2.2 million QoQ, but a decrease of S/ 3.6 million YoY.
The quarterly increase was the result of a S/ 20.4 million release in adjustment of technical reserves and a S/ 13.0 million increase in net premiums, partially offset by S/ 31.3 million growth in net claims and benefits incurred.
The annual performance was explained by a S/ 33.9 million increase in net claims and benefits incurred, and a S/ 26.8 million decrease in net premiums, partially offset by a S/ 57.1 million reduction in adjustment of technical reserves.
NET PREMIUMS
Net Premiums by Business Line
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 64.0 |
|
|
| 40.4 |
|
|
| 41.2 |
|
|
| 2.0 | % |
|
| (35.6 | )% | |
D&S |
|
| 0.1 |
|
|
| 0.0 |
|
|
| 0.1 |
|
|
| 24.3 | % |
|
| (55.5 | )% |
Individual Life |
|
| 32.9 |
|
|
| 29.5 |
|
|
| 34.9 |
|
|
| 18.6 | % |
|
| 6.1 | % |
Retail Insurance |
|
| 60.5 |
|
|
| 47.8 |
|
|
| 54.5 |
|
|
| 14.1 | % |
|
| (10.0 | )% |
Net Premiums |
|
| 157.5 |
|
|
| 117.7 |
|
|
| 130.7 |
|
|
| 11.1 | % |
|
| (17.0 | )% |
Net premiums were S/ 130.7 million in 3Q20, an increase of S/ 13.0 million, or 11.1%, QoQ and a reduction of S/ 26.8 million, or 17.0%, YoY.
The quarterly growth was mainly due to increases of S/ 6.7 million in retail insurance, S/ 5.4 million in individual life and S/ 0.8 million in annuity premiums.
The annual result in net premiums was mainly due to reductions of S/ 22.8 million in annuities and S/ 6.0 million in retail insurance, partially offset by a S/ 2.0 million increase in individual life premiums.
It is worth mentioning that in 3Q20 the overall activity in net premiums showed recovery trends in all segments when compared to the beginning of the COVID-19 pandemic.
ADJUSTMENT OF TECHNICAL RESERVES
Adjustment of Technical Reserves by Business Line
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| (21.9 | ) |
|
| 17.9 |
|
|
| 30.5 |
|
|
| 70.5 | % |
| n.m. |
| ||
Individual Life |
|
| (15.6 | ) |
|
| (26.3 | ) |
|
| (19.4 | ) |
|
| (26.1 | )% |
|
| 24.4 | % |
Retail Insurance |
|
| (2.0 | ) |
|
| 5.6 |
|
|
| 6.6 |
|
|
| 17.9 | % |
| n.m. |
| |
Adjustment of technical reserves |
|
| (39.5 | ) |
|
| (2.8 | ) |
|
| 17.6 |
|
| n.m. |
|
| n.m. |
|
17
Adjustment of technical reserves showed a S/ 17.6 million release in 3Q20, compared to requirements of S/ 2.8 million in 2Q20 and S/ 39.5 million in 3Q19.
The quarterly and annual performances were mainly explained by a release of technical reserves for annuities, mostly related to the COVID-19 mortality in Peru. Likewise, the quarterly performance was also the result of 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.
Additionally, the annual performance in the adjustment of technical reserves was also explained by an S/ 8.6 million release in retail insurance, partially offset by a S/ 3.8 million higher requirement in individual life.
NET CLAIMS AND BENEFITS INCURRED
Net Claims and Benefits Incurred by Business Line
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Annuities |
|
| (156.8 | ) |
|
| (161.2 | ) |
|
| (163.9 | ) |
|
| 1.7 | % |
|
| 4.5 | % |
D&S |
|
| 0.3 |
|
|
| 0.1 |
|
|
| (0.1 | ) |
| n.m. |
|
| n.m. |
| ||
Individual Life |
|
| (1.6 | ) |
|
| (3.4 | ) |
|
| (6.3 | ) |
|
| 86.1 | % |
| n.m. |
| |
Retail Insurance |
|
| (17.9 | ) |
|
| (14.2 | ) |
|
| (39.7 | ) |
| n.m. |
|
| n.m. |
| ||
Net claims and benefits incurred |
|
| (176.1 | ) |
|
| (178.7 | ) |
|
| (210.0 | ) |
|
| 17.5 | % |
|
| 19.3 | % |
Net claims and benefits incurred reached S/ 210.0 million in 3Q20, a growth of S/ 31.3 million QoQ and S/ 33.9 million YoY.
The quarterly performance was mainly explained by increases of S/ 25.5 million in retail insurance and S/ 2.9 million in individual life.
The annual growth in net claims and benefits incurred was explained by increases of S/ 21.8 million in retail insurance claims, S/ 7.1 million in annuity benefits and S/ 4.7 million in individual life.
It is worth noting that quarterly and annual growth in retail insurance were mostly related to higher claims in credit life insurance, related to the COVID-19 mortality in Peru.
OTHER EXPENSES
Other Expenses
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| (17.9 | ) |
|
| (17.1 | ) |
|
| (17.7 | ) |
|
| 3.1 | % |
|
| (1.4 | )% | |
Administrative expenses |
|
| (13.9 | ) |
|
| (8.7 | ) |
|
| (9.3 | ) |
|
| 6.6 | % |
|
| (32.6 | )% |
Depreciation and amortization |
|
| (4.8 | ) |
|
| (6.4 | ) |
|
| (6.4 | ) |
|
| (0.9 | )% |
|
| 33.0 | % |
Expenses related to rental income |
|
| (1.1 | ) |
|
| 0.8 |
|
|
| (0.3 | ) |
| n.m. |
|
|
| (68.3 | )% | |
Other |
|
| (37.1 | ) |
|
| (24.3 | ) |
|
| (30.1 | ) |
|
| 24.2 | % |
|
| (18.8 | )% |
Other expenses |
|
| (74.8 | ) |
|
| (55.7 | ) |
|
| (63.9 | ) |
|
| 14.5 | % |
|
| (14.6 | )% |
Other expenses grew S/ 8.2 million QoQ, or 14.5%, but decreased S/ 10.9 million YoY, or 14.6%.
The quarterly result was mainly due to increases of S/ 2.6 million in third-party commissions, related to a higher sale of net premiums, S/ 1.1 million in net expenses related to rental income, and S/ 0.6 million in salaries and employee benefits.
The annual reduction in other expenses was mainly due to decreases of S/ 6.3 million in third-party commissions, S/ 4.6 million in administrative expenses, mostly associated to cost containment measures implemented to deal with the COVID-19 pandemic, and S/ 0.8 million in expenses related to rental income..
18
Inteligo
SUMMARY
Inteligo’s net profit in 3Q20 was S/ 110.5 million, an increase of S/ 77.9 million QoQ and S/ 91.6 million YoY.
The main driver of the positive performance in 3Q20 was the contribution of other income, which showed strong gains for the period, mainly associated with positive mark-to-market conditions in Inteligo’s proprietary portfolio. A S/ 4.3 million QoQ increase in net interest and similar income helped further the quarterly performance.
From a business development perspective, Inteligo’s prospection process continued to show positive results in terms of new account openings and higher assets under management. Accordingly, Inteligo’s AUM grew 3.0% QoQ and 9.9% YoY as of September 30, 2020.
Consequently, Inteligo’s ROAE was 53.5% in 3Q20, higher than the 17.2% reported in 2Q20 and the 9.7% registered in 3Q19. Furthermore, the efficiency ratio improved to 19.5% in 3Q20.
Wealth Management Segment’s P&L Statement
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 42.5 |
|
|
| 33.3 |
|
|
| 37.9 |
|
|
| 13.9 | % |
|
| (10.7 | )% | |
Interest and similar expenses |
|
| (15.9 | ) |
|
| (12.5 | ) |
|
| (12.8 | ) |
|
| 2.7 | % |
|
| (19.3 | )% |
Net interest and similar income |
|
| 26.6 |
|
|
| 20.8 |
|
|
| 25.1 |
|
|
| 20.7 | % |
|
| (5.6 | )% |
Impairment loss on loans, net of recoveries |
|
| 0.0 |
|
|
| (0.0 | ) |
|
| (0.0 | ) |
| n.m. |
|
| n.m. |
| ||
Recovery (loss) due to impairment of financial investments |
|
| (0.5 | ) |
|
| (6.9 | ) |
|
| (0.2 | ) |
|
| (97.4 | )% |
|
| (62.4 | )% |
Net interest and similar income after impairment loss |
|
| 26.1 |
|
|
| 13.8 |
|
|
| 24.8 |
|
|
| 79.9 | % |
|
| (4.7 | )% |
Fee income from financial services, net |
|
| 41.3 |
|
|
| 40.4 |
|
|
| 40.1 |
|
|
| (0.9 | )% |
|
| (3.0 | )% |
Other income |
|
| (8.9 | ) |
|
| 10.3 |
|
|
| 75.2 |
|
| n.m. |
|
| n.m. |
| ||
Other expenses |
|
| (34.6 | ) |
|
| (26.6 | ) |
|
| (27.3 | ) |
|
| 2.8 | % |
|
| (20.9 | )% |
Income before translation result and income tax |
|
| 23.9 |
|
|
| 37.9 |
|
|
| 112.7 |
|
| n.m. |
|
| n.m. |
| ||
Translation result |
|
| (3.2 | ) |
|
| (2.6 | ) |
|
| (0.2 | ) |
|
| (93.9 | )% |
|
| (95.0 | )% |
Income tax |
|
| (1.7 | ) |
|
| (2.7 | ) |
|
| (2.1 | ) |
|
| (22.7 | )% |
|
| 22.1 | % |
Profit for the period |
|
| 18.9 |
|
|
| 32.6 |
|
|
| 110.5 |
|
| n.m. |
|
| n.m. |
| ||
ROAE |
|
| 9.7 | % |
|
| 17.2 | % |
|
| 53.5 | % |
|
|
|
|
|
|
|
|
Efficiency ratio |
|
| 58.6 | % |
|
| 37.1 | % |
|
| 19.5 | % |
|
|
|
|
|
|
|
|
ASSETS UNDER MANAGEMENT & DEPOSITS
AUM reached S/ 19,879.9 million in 3Q20, a S/ 577.9 million or 3.0% increase QoQ and a S/ 1,793.2 million or 9.9% growth YoY; mostly due to strengthened mark-to-market valuations from the appreciation of client assets and the foreign exchange rate, as well as to the execution of adequate client prospection and conversion strategies throughout the year.
Client deposits were S/ 3,164.9 million in 3Q20, a S/ 25.0 million or 0.8% decrease QoQ, but an S/ 89.2 million or 2.9% increase YoY. The yearly growth was mainly due to the appreciation of the foreign exchange rate during the period.
19
NET INTEREST AND SIMILAR INCOME
Net interest and similar income
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Due from banks and inter-bank funds |
|
| 5.4 |
|
|
| 1.7 |
|
|
| 1.4 |
|
|
| (20.5 | )% |
|
| (74.6 | )% |
Financial Investments |
|
| 18.3 |
|
|
| 15.2 |
|
|
| 20.8 |
|
|
| 36.9 | % |
|
| 13.1 | % |
Loans |
|
| 18.8 |
|
|
| 16.4 |
|
|
| 15.8 |
|
|
| (3.7 | )% |
|
| (15.8 | )% |
Total interest and similar income |
|
| 42.5 |
|
|
| 33.3 |
|
|
| 37.9 |
|
|
| 13.9 | % |
|
| (10.7 | )% |
Interest and similar expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| (12.5 | ) |
|
| (11.8 | ) |
|
| (11.2 | ) |
|
| (4.9 | )% |
|
| (10.2 | )% |
Due to banks and correspondents |
|
| (3.4 | ) |
|
| (0.7 | ) |
|
| (1.6 | ) |
| n.m. |
|
|
| (52.9 | )% | |
Total interest and similar expenses |
|
| (15.9 | ) |
|
| (12.5 | ) |
|
| (12.8 | ) |
|
| 2.7 | % |
|
| (19.3 | )% |
Net interest and similar income |
|
| 26.6 |
|
|
| 20.8 |
|
|
| 25.1 |
|
|
| 20.7 | % |
|
| (5.6 | )% |
Inteligo’ s net interest and similar income was S/ 25.1 million in 3Q20, a S/ 4.3 million, or 20.7% increase when compared with 2Q20. This was mainly explained by incremental dividends received from investments during the quarter.
Net interest and similar income decreased S/ 1.5 million or 5.6% YoY. This reduction was due to a contraction in the spread between the loan rate and the deposit rate, in addition to lower average returns on due from banks and inter-bank funds, in turn explained by lower overnight rates for excess treasury funds.
FEE INCOME FROM FINANCIAL SERVICES
Fee income from financial services, net
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Brokerage and custody services |
|
| 6.3 |
|
|
| 2.8 |
|
|
| 2.2 |
|
|
| (20.3 | )% |
|
| (64.9 | )% |
Funds management |
|
| 35.4 |
|
|
| 38.0 |
|
|
| 38.2 |
|
|
| 0.5 | % |
|
| 7.8 | % |
Total income |
|
| 41.7 |
|
|
| 40.8 |
|
|
| 40.4 |
|
|
| (0.9 | )% |
|
| (3.2 | )% |
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage and custody services |
|
| (0.3 | ) |
|
| (0.1 | ) |
|
| (0.1 | ) |
|
| 5.1 | % |
|
| (56.0 | )% |
Others |
|
| (0.1 | ) |
|
| (0.2 | ) |
|
| (0.2 | ) |
|
| (4.2 | )% |
|
| 71.8 | % |
Total expenses |
|
| (0.4 | ) |
|
| (0.3 | ) |
|
| (0.3 | ) |
|
| (0.4 | )% |
|
| (23.4 | )% |
Fee income from financial services, net |
|
| 41.3 |
|
|
| 40.4 |
|
|
| 40.1 |
|
|
| (0.9 | )% |
|
| (3.0 | )% |
Net fee income from financial services was S/ 40.1 million in 3Q20, a decrease of S/ 0.3 million, or 0.9% when compared to the previous quarter. This was mainly attributable to reduced brokerage and custody fees.
On a YoY basis, net fee income from financial services decreased S/ 1.2 million, or 3.0%, mainly explained by lower brokerage fees, partly offset by an increase in funds management fees.
20
Other income
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
|
| 4.2 |
|
|
| (7.4 | ) |
|
| (6.3 | ) |
|
| (14.9 | )% |
| n.m. |
| ||
Net trading gain (loss) |
|
| (11.2 | ) |
|
| 18.8 |
|
|
| 82.8 |
|
| n.m. |
|
| n.m. |
| ||
Other |
|
| (1.9 | ) |
|
| (1.1 | ) |
|
| (1.4 | ) |
|
| 24.9 | % |
|
| (26.9 | )% |
Total other income |
|
| (8.9 | ) |
|
| 10.3 |
|
|
| 75.2 |
|
| n.m. |
|
| n.m. |
|
Inteligo’s other income reached S/ 75.2 million in 3Q20, an increase of S/ 64.9 million QoQ and S/ 84.1 million YoY, mainly attributable to the effect of positive mark-to-market valuations on proprietary portfolio investments albeit the sale of certain underperforming assets at a loss throughout the year.
OTHER EXPENSES
Other expenses
S/ million |
| 3Q19 |
|
| 2Q20 |
|
| 3Q20 |
|
| %chg QoQ |
|
| %chg YoY |
| |||||
Salaries and employee benefits |
|
| (16.7 | ) |
|
| (14.8 | ) |
|
| (15.4 | ) |
|
| 3.5 | % |
|
| (7.9 | )% |
Administrative expenses |
|
| (10.5 | ) |
|
| (8.1 | ) |
|
| (8.6 | ) |
|
| 6.2 | % |
|
| (17.9 | )% |
Depreciation and amortization |
|
| (7.4 | ) |
|
| (3.5 | ) |
|
| (3.4 | ) |
|
| (4.3 | )% |
|
| (54.2 | )% |
Other |
|
| (0.0 | ) |
|
| (0.1 | ) |
|
| 0.0 |
|
| n.m. |
|
| n.m. |
| ||
Total other expenses |
|
| (34.6 | ) |
|
| (26.6 | ) |
|
| (27.3 | ) |
|
| 2.8 | % |
|
| (20.9 | )% |
Efficiency ratio |
|
| 58.6 | % |
|
| 37.1 | % |
|
| 19.5 | % |
|
|
|
|
|
|
|
|
Other expenses reached S/ 27.3 million in 3Q20, an increase of S/ 0.7 million, or 2.8% QoQ, mainly due to slightly higher salaries and employee benefits, as well as administrative expenses for the period given the increased activity. On a yearly basis, however, other expenses decreased S/ 7.3 million, or 20.9% YoY, as a result of a lower depreciation of fixed assets and expense containment initiatives implemented after the COVID-19 pandemic breakout in March 2020.
21
Intercorp Financial Services Inc. and Subsidiaries
Interim consolidated financial statements as of September 30, 2020, December 31, 2019 and for the nine-months period ended September 30, 2020 and 2019
Interim consolidated financial statements as of September 30, 2020, December 31, 2019 and for the nine-months period ended September 30, 2020 and 2019
Content
Interim consolidated financial statements
Interim consolidated statement of financial position
As of September 30, 2020 (unaudited) and December 31, 2019 (audited)
|
| Note |
|
| 30.09.2020 |
|
| 31.12.2019 |
| |||
|
|
|
|
|
| S/(000) |
|
| S/(000) |
| ||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| 3(a) |
|
|
|
|
|
|
|
|
| |
Non-interest bearing |
|
|
|
|
|
| 2,508,682 |
|
|
| 2,704,758 |
|
Interest bearing |
|
|
|
|
|
| 14,426,956 |
|
|
| 7,153,180 |
|
Restricted funds |
|
|
|
|
|
| 637,432 |
|
|
| 1,270,937 |
|
|
|
|
|
|
|
| 17,573,070 |
|
|
| 11,128,875 |
|
Inter-bank funds |
| 3(e) |
|
|
| — |
|
|
| 85,006 |
| |
Financial investments |
|
| 4 |
|
|
| 22,787,879 |
|
|
| 19,072,718 |
|
Loans, net: |
|
| 5 |
|
|
|
|
|
|
|
|
|
Loans, net of unearned interest |
|
|
|
|
|
| 43,962,931 |
|
|
| 38,531,632 |
|
Impairment allowance for loans |
|
|
|
|
|
| (3,116,452 | ) |
|
| (1,394,779 | ) |
|
|
|
|
|
|
| 40,846,479 |
|
|
| 37,136,853 |
|
Investment property |
|
| 6 |
|
|
| 1,044,771 |
|
|
| 972,096 |
|
Property, furniture and equipment, net |
|
|
|
|
|
| 874,994 |
|
|
| 950,943 |
|
Due from customers on acceptances |
|
|
|
|
|
| 15,693 |
|
|
| 139,685 |
|
Intangibles and goodwill, net |
|
|
|
|
|
| 1,030,438 |
|
|
| 979,262 |
|
Other accounts receivable and other assets, net |
|
| 7 |
|
|
| 1,601,560 |
|
|
| 1,051,872 |
|
Deferred Income Tax asset, net |
|
|
|
|
|
| 237,541 |
|
|
| 44,983 |
|
Total assets |
|
|
|
|
|
| 86,012,425 |
|
|
| 71,562,293 |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 8 |
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
|
|
|
|
| 8,215,698 |
|
|
| 5,644,238 |
|
Interest bearing |
|
|
|
|
|
| 36,993,166 |
|
|
| 32,448,986 |
|
|
|
|
|
|
|
| 45,208,864 |
|
|
| 38,093,224 |
|
Inter-bank funds |
| 3(e) |
|
|
| — |
|
|
| 169,138 |
| |
Due to banks and correspondents |
|
| 9 |
|
|
| 10,554,998 |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| 10 |
|
|
| 7,696,094 |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
|
|
|
|
| 15,693 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| 11 |
|
|
| 11,793,254 |
|
|
| 11,338,810 |
|
Other accounts payable, provisions and other liabilities |
|
| 7 |
|
|
| 2,406,959 |
|
|
| 2,048,048 |
|
Deferred Income Tax liability, net |
|
|
|
|
|
| 1,358 |
|
|
| 13 |
|
Total liabilities |
|
|
|
|
|
| 77,677,220 |
|
|
| 62,658,845 |
|
Equity, net |
|
| 12 |
|
|
|
|
|
|
|
|
|
Equity attributable to IFS’s shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
| 1,038,017 |
|
|
| 1,038,017 |
|
Treasury stock |
|
|
|
|
|
| (57 | ) |
|
| (196 | ) |
Capital surplus |
|
|
|
|
|
| 532,771 |
|
|
| 530,456 |
|
Reserves |
|
|
|
|
|
| 5,200,000 |
|
|
| 4,700,000 |
|
Unrealized results, net |
|
|
|
|
|
| 602,311 |
|
|
| 442,905 |
|
Retained earnings |
|
|
|
|
|
| 918,652 |
|
|
| 2,145,688 |
|
|
|
|
|
|
|
| 8,291,694 |
|
|
| 8,856,870 |
|
Non-controlling interest |
|
|
|
|
|
| 43,511 |
|
|
| 46,578 |
|
Total equity, net |
|
|
|
|
|
| 8,335,205 |
|
|
| 8,903,448 |
|
Total liabilities and equity, net |
|
|
|
|
|
| 86,012,425 |
|
|
| 71,562,293 |
|
The accompanying notes are an integral part of these interim consolidated financial statements.
3
Interim consolidated statement of income
For the nine-months period ended September 30, 2020 and 2019
|
| Note |
|
| 30.09.2020 |
|
| 30.09.2019 |
| |||
|
|
|
|
|
| S/(000) |
|
| S/(000) |
| ||
Interest and similar income |
|
| 14 |
|
|
| 3,628,908 |
|
|
| 3,597,348 |
|
One-off impact from the modification of contractual cash flows due to the loan rescheduling schemes |
|
| 14 |
|
|
| (151,143 | ) |
|
| — |
|
Interest and similar expenses |
|
| 14 |
|
|
| (930,131 | ) |
|
| (1,037,329 | ) |
Net interest and similar income |
|
|
|
|
|
| 2,547,634 |
|
|
| 2,560,019 |
|
Impairment loss on loans, net of recoveries |
| 5(d) |
|
|
| (2,066,425 | ) |
|
| (602,957 | ) | |
(Loss) recovery due to impairment on financial investments |
| 4(b.1) |
|
|
| (55,195 | ) |
|
| 1,529 |
| |
Net interest and similar income after impairment loss |
|
|
|
|
|
| 426,014 |
|
|
| 1,958,591 |
|
Fee income from financial services, net |
|
| 15 |
|
|
| 537,556 |
|
|
| 675,548 |
|
Net gain on foreign exchange transactions |
|
|
|
|
|
| 248,698 |
|
|
| 191,543 |
|
Net gain on sale of financial investments |
|
|
|
|
|
| 133,205 |
|
|
| 96,823 |
|
Gain from derecognition of financial assets at amortized cost |
| 4(c) |
|
|
| — |
|
|
| 8,474 |
| |
Net gain (loss) on financial assets at fair value through profit or loss |
|
|
|
|
|
| 35,212 |
|
|
| (9,542 | ) |
Net gain on investment property |
| 6(b) |
|
|
| 41,208 |
|
|
| 75,192 |
| |
Other income |
|
| 16 |
|
|
| 36,157 |
|
|
| 47,698 |
|
|
|
|
|
|
|
| 1,032,036 |
|
|
| 1,085,736 |
|
Insurance premiums and claims |
| 17 |
|
|
|
|
|
|
|
|
| |
Net premiums earned |
|
|
|
|
|
| 387,583 |
|
|
| 312,340 |
|
Net claims and benefits incurred for life insurance contracts and others |
|
|
|
|
|
| (572,635 | ) |
|
| (514,206 | ) |
|
|
|
|
|
|
| (185,052 | ) |
|
| (201,866 | ) |
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
|
|
|
| (532,819 | ) |
|
| (596,882 | ) |
Administrative expenses |
|
|
|
|
|
| (556,600 | ) |
|
| (571,702 | ) |
Depreciation and amortization |
|
|
|
|
|
| (195,835 | ) |
|
| (198,819 | ) |
Other expenses |
|
| 16 |
|
|
| (88,592 | ) |
|
| (96,978 | ) |
|
|
|
|
|
|
| (1,373,846 | ) |
|
| (1,464,381 | ) |
(Expense) income before translation result and Income Tax |
|
|
|
|
|
| (100,848 | ) |
|
| 1,378,080 |
|
Translation result |
|
|
|
|
|
| (42,070 | ) |
|
| 5,244 |
|
Income Tax |
| 13(e) |
|
|
| 149,030 |
|
|
| (345,982 | ) | |
Net profit for the period |
|
|
|
|
|
| 6,112 |
|
|
| 1,037,342 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
IFS’s shareholders |
|
|
|
|
|
| 7,258 |
|
|
| 1,030,914 |
|
Non-controlling interests |
|
|
|
|
|
| (1,146 | ) |
|
| 6,428 |
|
|
|
|
|
|
|
| 6,112 |
|
|
| 1,037,342 |
|
Earnings per share attributable to IFS’s shareholders basic and diluted (stated in Soles) |
|
| 18 |
|
|
| 0.063 |
|
|
| 9.212 |
|
Weighted average number of outstanding shares (in thousands) |
|
| 18 |
|
|
| 115,447 |
|
|
| 111,907 |
|
The accompanying notes are an integral part of these interim consolidated financial statements.
4
Interim consolidated statement of other comprehensive income
For the nine-months period ended September 30, 2020 and 2019
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Net profit for the period |
|
| 6,112 |
|
|
| 1,037,342 |
|
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 |
|
| (24,144 | ) |
|
| 131,851 |
|
Income Tax |
|
| — |
|
|
| (32,195 | ) |
Total unrealized (loss) gain that will not be reclassified to the consolidated statement of income |
|
| (24,144 | ) |
|
| 99,656 |
|
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 |
|
| (82,224 | ) |
|
| 1,276,879 |
|
Income Tax |
|
| (1,413 | ) |
|
| (2,088 | ) |
|
|
| (83,637 | ) |
|
| 1,274,791 |
|
Insurance premiums reserve |
|
| 204,868 |
|
|
| (1,066,585 | ) |
Net variation of cash flow hedges |
|
| (5,528 | ) |
|
| (15,615 | ) |
Income Tax |
|
| 1,367 |
|
|
| 4,060 |
|
|
|
| (4,161 | ) |
|
| (11,555 | ) |
Translation of foreign operations |
|
| 67,043 |
|
|
| 1,358 |
|
Total unrealized gain to be reclassified to the consolidated statement of income in subsequent periods |
|
| 184,113 |
|
|
| 198,009 |
|
Total other comprehensive (loss) income for the period, net of Income Tax |
|
| 166,081 |
|
|
| 1,335,007 |
|
Attributable to: |
|
|
|
|
|
|
|
|
IFS’s shareholders |
|
| 166,664 |
|
|
| 1,328,368 |
|
Non-controlling interests |
|
| (583 | ) |
|
| 6,639 |
|
|
|
| 166,081 |
|
|
| 1,335,007 |
|
The accompanying notes are an integral part of these interim consolidated financial statements.
5
Interim consolidated statement of changes in equity
For the nine-months period ended September 30, 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 interests |
|
| 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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,030,914 |
|
|
| 1,030,914 |
|
|
| 6,428 |
|
|
| 1,037,342 |
|
Other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 100,141 |
|
|
| 1,272,276 |
|
|
| (1,064,834 | ) |
|
| (11,487 | ) |
|
| 1,358 |
|
|
| — |
|
|
| 297,454 |
|
|
| 211 |
|
|
| 297,665 |
|
Total other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 100,141 |
|
|
| 1,272,276 |
|
|
| (1,064,834 | ) |
|
| (11,487 | ) |
|
| 1,358 |
|
|
| 1,030,914 |
|
|
| 1,328,368 |
|
|
| 6,639 |
|
|
| 1,335,007 |
|
Initial Public Offering, Note 1(c) and 12(a) |
|
| 2,337 |
|
|
| 2,418 |
|
|
| 74,571 |
|
|
| 208,178 |
|
|
| 262,996 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 138,997 |
|
|
| 684,742 |
|
|
| 814 |
|
|
| 685,556 |
|
Declared and paid dividends, Note 12(a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (654,464 | ) |
|
| (654,464 | ) |
|
| — |
|
|
| (654,464 | ) |
Dividends paid to non-controlling interests of Subsidiaries |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (3,455 | ) |
|
| (3,455 | ) |
Dividends received by Subsidiaries on treasury stock |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,422 |
|
|
| 11,422 |
|
|
| 80 |
|
|
| 11,502 |
|
Others |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 18,081 |
|
|
| 18,081 |
|
|
| (71 | ) |
|
| 18,010 |
|
Balance as of September 30, 2019 |
|
| 115,447 |
|
|
| — |
|
|
| 1,038,017 |
|
|
| — |
|
|
| 531,073 |
|
|
| 4,700,000 |
|
|
| 247,695 |
|
|
| 1,039,939 |
|
|
| (989,259 | ) |
|
| 16,424 |
|
|
| 104,341 |
|
|
| 1,747,993 |
|
|
| 8,436,223 |
|
|
| 44,409 |
|
|
| 8,480,632 |
|
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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 7,258 |
|
|
| 7,258 |
|
|
| (1,146 | ) |
|
| 6,112 |
|
Other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (24,094 | ) |
|
| (83,937 | ) |
|
| 204,532 |
|
|
| (4,138 | ) |
|
| 67,043 |
|
|
| — |
|
|
| 159,406 |
|
|
| 563 |
|
|
| 159,969 |
|
Total other comprehensive income |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (24,094 | ) |
|
| (83,937 | ) |
|
| 204,532 |
|
|
| (4,138 | ) |
|
| 67,043 |
|
|
| 7,258 |
|
|
| 166,664 |
|
|
| (583 | ) |
|
| 166,081 |
|
Declared and paid dividends, Note 12(a) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (698,228 | ) |
|
| (698,228 | ) |
|
| — |
|
|
| (698,228 | ) |
Sale of treasury stock, Note 12(b) |
|
| — |
|
|
| 1 |
|
|
| — |
|
|
| 139 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 139 |
|
|
| — |
|
|
| 139 |
|
Transfer from retained earnings to reserves, Note 12(d) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 500,000 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (500,000 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Dividends paid to non-controlling interest of Subsidiaries |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (2,432 | ) |
|
| (2,432 | ) |
Others |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,315 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (36,066 | ) |
|
| (33,751 | ) |
|
| (52 | ) |
|
| (33,803 | ) |
Balance as of September 30, 2020 |
|
| 115,447 |
|
|
| — |
|
|
| 1,038,017 |
|
|
| (57 | ) |
|
| 532,771 |
|
|
| 5,200,000 |
|
|
| 240,789 |
|
|
| 952,222 |
|
|
| (719,323 | ) |
|
| (26,896 | ) |
|
| 155,519 |
|
|
| 918,652 |
|
|
| 8,291,694 |
|
|
| 43,511 |
|
|
| 8,335,205 |
|
The accompanying notes are an integral part of these interim consolidated financial statements.
6
Interim consolidated statement of cash flows
For the nine-months period ended September 30, 2020 and 2019
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net profit for the period |
|
| 6,112 |
|
|
| 1,037,342 |
|
Plus (minus) adjustments to net profit |
|
|
|
|
|
|
|
|
Impairment loss on loans, net of recoveries |
|
| 2,066,425 |
|
|
| 602,957 |
|
Loss (recovery) due to impairment of financial investments |
|
| 55,195 |
|
|
| (1,529 | ) |
Depreciation and amortization |
|
| 195,835 |
|
|
| 198,819 |
|
Sundry provisions |
|
| 3,287 |
|
|
| 2,935 |
|
Deferred Income Tax |
|
| (192,500 | ) |
|
| 15,278 |
|
Net gain on sale of financial investments |
|
| (133,205 | ) |
|
| (96,823 | ) |
Gain from derecognition of financial assets at amortized cost |
|
| — |
|
|
| (8,474 | ) |
Net (gain) loss of financial assets at fair value through profit or loss |
|
| (35,212 | ) |
|
| 9,542 |
|
Net gain for valuation of investment property |
|
| (11,919 | ) |
|
| (44,655 | ) |
Translation result |
|
| 42,070 |
|
|
| (5,244 | ) |
Net loss on sale of investment property |
|
| — |
|
|
| 5,936 |
|
(Increase) decrease in accrued interest receivable |
|
| (73,758 | ) |
|
| 41,629 |
|
(Decrease) increase in accrued interest payable |
|
| (15,529 | ) |
|
| 64,893 |
|
Net changes in assets and liabilities |
|
|
|
|
|
|
|
|
Net increase in loans |
|
| (5,743,392 | ) |
|
| (3,034,313 | ) |
Increase in other accounts receivable and other assets |
|
| (348,898 | ) |
|
| (1,657,388 | ) |
Net decrease (increase) in restricted funds |
|
| 603,121 |
|
|
| (229,160 | ) |
Increase in deposits and obligations |
|
| 7,154,367 |
|
|
| 2,562,524 |
|
Increase in due to banks and correspondents |
|
| 6,589,229 |
|
|
| 140,943 |
|
Increase in other accounts payable, provisions and other liabilities |
|
| 411,299 |
|
|
| 682,268 |
|
Decrease of investments at fair value through profit or loss |
|
| 48,954 |
|
|
| 87,255 |
|
Net cash provided by operating activities |
|
| 10,621,481 |
|
|
| 374,735 |
|
The accompanying notes are an integral part of these interim consolidated financial statements.
7
Interim consolidated statements of cash flows (continued)
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Net (purchase) sale of financial investments |
|
| (3,453,776 | ) |
|
| 855,312 |
|
Purchase of property, furniture and equipment |
|
| (42,752 | ) |
|
| (40,470 | ) |
Purchase of intangible assets |
|
| (146,425 | ) |
|
| (85,792 | ) |
Purchase of investment property |
|
| (55,555 | ) |
|
| 68,997 |
|
Net cash (used in) provided by investing activities |
|
| (3,698,508 | ) |
|
| 798,047 |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Dividends paid |
|
| (698,228 | ) |
|
| (654,464 | ) |
Net increase of bonds, notes and other obligations |
|
| 1,069,094 |
|
|
| 1,755,316 |
|
Net decrease in receivable inter-bank funds |
|
| 85,006 |
|
|
| 495,037 |
|
Net (decrease) increase in payable inter-bank funds |
|
| (169,138 | ) |
|
| 15,001 |
|
Initial Public Offering, net of related expenses, Note 1(c) |
|
| — |
|
|
| 397,175 |
|
Sale of treasury stock |
|
| 139 |
|
|
| — |
|
Dividend payments to non-controlling interests |
|
| (2,432 | ) |
|
| (3,455 | ) |
Lease payments |
|
| (79,214 | ) |
|
| (80,069 | ) |
Net cash provided by financing activities |
|
| 205,227 |
|
|
| 1,924,541 |
|
Net increase in cash and cash equivalents |
|
| 7,128,200 |
|
|
| 3,097,323 |
|
Translation (loss) gain on cash and cash equivalents |
|
| (49,126 | ) |
|
| 3,793 |
|
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 |
|
| 16,930,803 |
|
|
| 10,188,178 |
|
The accompanying notes are an integral part of these interim consolidated financial statements.
8
Notes to the interim consolidated financial statements
As of September 30, 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 September 30, 2020 and December 31, 2019, Intercorp Perú holds directly and indirectly 70.62 percent of the issuead and outstanding capital stock of IFS.
IFS’s legal domicile is located at Av. Carlos Villarán 140 Urb. Santa Catalina, La Victoria, Lima, Peru.
As of September 30, 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.
The interim consolidated financial statements as of September 30, 2020 have been authorized by Management and the Audit Committee on November 09, 2020 and approved by the Board of Directors held on November 12, 2020. The audited consolidated financial statement of IFS and Subsidiaries as of December 31, 2019, were approved by the General Shareholders’ Meeting held on April 7, 2020.
(b)Global pandemic Covid-19 –
A new coronavirus strain (Covid-19) was first identified in Wuhan, China, in December 2019, and later declared a pandemic by the World Health Organization, has spread in almost all regions in the world, which has resulted in travel restrictions and trade slowdowns. In that sense, on March 15, 2020, the Peruvian Government, through Supreme Decree No.044-2020, declared a National lockdown ordering the closing of the national borders, compulsory social confinement, the lockdown of businesses deemed non-essential (exceptions were production, distribution and commercialization of food and pharmaceuticals, financial services and healthcare), among others. As of the date of this report, the National lockdown has been extended until November 30, 2020.
Within this context, the Ministry of Economy and Finance (henceforth “MEF”), the Central Reserve Bank of Peru (henceforth “BCRP”) and the Superintendence of Banking, Insurance and Private Pension Fund Administrators (henceforth “SBS”), activated extraordinary measures aimed to alleviate the financial and economic impact of Covid-19, in particular on customers of the financial systems (due to the lockdown of certain economic sectors), as well as some additional measures focused on securing the continuity of the economy’s payment chain.
| The main measures implemented in the financial system are related to facilities for loan rescheduling (payment deferrals), see further detail in Note 2.3, suspension of counting of past due days, partial withdrawal of severance indemnities and launching of credit programs guaranteed by the Peruvian Government, such as “Reactiva Perú”, created through Legislative Decree No. 1455-2020 to secure the continuity of the payment chain in the face of Covid-19’s impact. |
Said program grants guarantees to companies in order for them to obtain working capital loans and thus comply with their short-term obligations with their workers and suppliers of goods and services. This program manages guarantees amounting to S/30,000 million.
9
As of September 30, 2020, Interbank holds loans of the “Reactiva Perú” program for approximately S/6,709 million, out of which S/5,909 million are guaranteed by the Peruvian Government; see Notes 5 and 9.
On the other hand, IFS’s Management monitors closely the situation and focuses in securing the operation and enhance the liquidity and solvency positions of the Subsidiaries. Regarding liquidity, Interbank has maintained an active participation in the BCRP’s daily operations and has used available credit lines from correspondent banks abroad.
| Likewise, with the purpose of strengthening its capital and regulatory capital requirements to face the volatile environment, the Subsidiaries have implemented the following measures: |
| - | In Shareholders’ Meeting held on April 3, 2020, Interbank approved the reduction in the percentage of distributable dividends, charged to 2019 period, from 45 to 25 percent. In addition, the net profit generated in the first quarter of 2020 also has a capitalization agreement. |
-On June 30, 2020, Interbank placed subordinated bonds for US$300,000,000, as explained in Note 10.
| - | In Board’s Session held on June 30, 2020, Interseguro committed to the capitalization of S/50,000,000 with charge to the period’s net profit. |
| - | On September 30, 2020, Interseguro placed subordinated bonds for US$25,000,000, as explained in Note 10. |
| (c) | Initial Public Offering – |
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 Peru; and (iv) a non-related shareholder. Additionally, IFS granted the Offering placers a 30-day call option to buy 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 Peru 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). |
| (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). |
10
| (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 September 30, 2020 and December 31, 2019, Interbank had 233 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.
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. This 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. This 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 Subsidiary -
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 September 30, 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”), 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 September 30, 2020 and December 31, 2019, amounted to S/118,843,000 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.
11
(c)Inteligo Group Corp. and Subsidiaries -
Inteligo is an entity incorporated in the Republic of Panama. As of September 30, 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 September 30, 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)IFS Digital S.A.C. -
Incorporated in August 2020,its main purpose is to carry out all kinds of investments and related services.
(g)Hipotecaria Sura Empresa Administradora Hipotecaria S.A. -
Company dedicated to granting mortgage loans and acquired as part of the acquisition of the Sura Group in 2017. Since 2015 it has not granted loans and was extinguised as of December 31, 2019.
12
2.1Basis of presentation and use of estimates –
The interim consolidated financial statements as of September 30, 2020 and December 31, 2019 and for the nine-months period ended September 30, 2020 and 2019, have been prepared in accordance with IAS 34 “Interim Financial Reporting”.
The interim 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 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 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 consolidated financial statements, in accordance 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 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 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 consolidated financial statements of IFS comprise the financial statements of Intercorp Financial Services Inc. and Subsidiaries. The method adopted by IFS to consolidate information with its Subsidiaries is described in Note 3.3 to the Annual Consolidated Financial Statements.
2.3Regulations issued by the SBS –
As indicated in Note 1(b), with the purpose of facilitating the payment of debt of the clients of the financial entities affected by the outbreak of Covid-19, the SBS issued the following Multiple Official Letters:
2.3.1 Regulations related to loan portfolio
| (a) | Multiple Official Letters No.10997-2020-SBS, No.11150-2020-SBS, No.11170-2020-SBS and No.13195-2020-SBS issued on March 13, 2020, March 16, 2020, March 20, 2020, and May 19, 2020, respectively. Through these Multiple Official Letters, the SBS established the following exceptional measures applicable to loan portfolio: |
| - The financial system entities are enabled to modify the contractual conditions of loans without presenting them as refinanced provided that the entire term is not extended for more than six months from the original term. Also, debtors must have a maximum past due of 15 days as of February 29, 2020. |
| -In the case of loans to retail clients with modified contractual conditions, the associated interest can continue to be recognized on an accrual basis. However, if the debtor changes |
13
| its situation to past due after the establishment of new loan terms, the financial entity must reverse the cumulative interest of said loan, proportionally, in a six-month period. |
| -For loans to non-retail clients with modified contractual conditions, the associated interest must be recognized by the cash flow method. Cumulative and not collected interest related to these loans must be reversed starting on the modification date. |
| -For debtors with past due loans of more than 15 days as of February 29, 2020, the calculation of past due days will be suspended during the National lockdown. |
| -If a debtor presents past due payments after the contractual modifications, said loan will be deemed as refinanced loan, following the general criteria of the current regulation. |
| -According to Multiple Official Letter No.11150-2020-SBS, the scope of the aforementioned facilities shall be determined by each entity of the financial system, after analyzing the level of impact in their respective loan portfolio. |
| -Financial entities are able to record, as preventive and responsible manner, necessary voluntary provisions that allow them to deal with risk increasing in the loan portfolio, at the moment they materialize. |
| (b) | Multiple Official Letter No.13805-2020-SBS, issued on May 29, 2020: Amended the following regulations: |
| Multiple Official Letters No.10997-2020-SBS, No.11150-2020-SBS and No. 11170-2020-SBS (see Note 2.3.1 (a)); and additionally, amended Multiple Official Letters No. 12679-2020 and No. 13195-2020, issued on May 5, 2020, and May 19, 2020, respectively. The main amendments were the following: |
| (i) | Financial entities can unilaterally reprogram loans until June 30, 2020, provided the compliance of certain criteria included in said Multiple Official Letter. |
| (ii) | The loan rescheduling term ranges from 6 to 12 months with respect to the original term. |
| (iii) | For contractual modifications made since the date of the regulation, and only for purposes of the National lockdown, the debt shall be deemed as current if it is past due for a maximum of 30 calendar days. |
| (iv) | The suspension of counting of past due days, applicable to past due loans of more than 15 days as of February 29, 2020, shall be effective for the duration of the National lockdown, as well as the accounting situation of said loans. Also, in the case of loans that as of February 29, 2020, have been past due between 15 and 60 days, said suspension shall be effective until the end of the month following that of the lifting of the National lockdown. |
| (c) | Multiple Official Letter No. 15994-2020-SBS, issued on July 2, 2020: Amended the following regulations: |
| Multiple Official Letters No. 10997-2020-SBS, No. 11150-2020-SBS, No. 11170-2020-SBS, No. 12679-2020-SBS, No. 13195-2020-SBS, No. 13805-2020-SBS and No. 14355-2020-SBS, issued, respectively, on March 13, 2020, March 16, 2020, March 20, 2020, May 5, 2020, May 19, 2020, May 29, 2020, and June 9, 2020. The main clarification was the following: |
| (i) | The suspension of counting of past-due days, shall be maintained only until July 31, 2020, applicable to loans with more than 15 calendar days past due, as of February 29, 2020, as well as the accounting situation of said loans. |
In application of the regulations issued by the SBS and summarized in previous paragraphs, Interbank has reprogramed loans for approximately S/11,759 million and has modified their respective payment schedules. Thus, the present value of the loans has decreased by S/151 million, which are presented by reducing the interest income of the loan portfolio; see Note 14.
14
2.3.2 Resolution No.1264-2020-SBS, issued on March 26, 2020
This Resolution establishes that in the modifications of the contractual conditions indicated in the Multiple Official Letters mentioned in Note 2.3.1, it shall not increase the regulatory capital requirement for the non-revolving consumer loans and mortgage loans. Likewise, said Resolution authorizes the financial entities to use the additional regulatory capital for the component of the economic cycle.
2.3.3 Repurchase agreements of loan portfolio represented by securities
On April 3, 2020, the BCRP issued the Circular Letter No.0014-2020-BCRP, which establishes the characteristics and procedures of the repurchase agreements of loan portfolio guaranteed by the Peruvian Government. At the selling date, the bank receives the domestic currency (sale amount) and, at the same operation, is obliged to repurchase said portfolio (repurchase amount). The BCRP shall disburse 80 percent of the funds in the bank’s current account it holds at the BCRP and the remaining part in a restricted account also held by the bank at the BCRP.
3. | Cash and due from banks and inter-bank funds |
| (a) | The detail of cash and due from banks is as follows: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Cash and clearing (b) |
|
| 1,772,304 |
|
|
| 1,877,843 |
|
Deposits in the Central Reserve Bank of Peru – BCRP (b) |
|
| 13,266,220 |
|
|
| 5,861,570 |
|
Deposits in banks (c) |
|
| 1,892,279 |
|
|
| 2,112,316 |
|
Accrued interest |
|
| 4,835 |
|
|
| 6,209 |
|
|
|
| 16,935,638 |
|
|
| 9,857,938 |
|
Restricted funds (d) |
|
| 637,432 |
|
|
| 1,270,937 |
|
Total |
|
| 17,573,070 |
|
|
| 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 September 30, 2020, the excess in foreign currency accrued interest in US Dollars at 0.01 percent (1.25 percent as of December 31, 2019).
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: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Repurchase agreements with BCRP (*) |
|
| 539,324 |
|
|
| 1,208,506 |
|
Derivative financial instruments |
|
| 92,608 |
|
|
| 57,816 |
|
Others |
|
| 5,500 |
|
|
| 4,615 |
|
Total |
|
| 637,432 |
|
|
| 1,270,937 |
|
| (*) | As of September 30, 2020, correspond to deposits maintained in the BCRP which guarantee agreements amounting to S/520,000,000 (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 interim consolidated statement of cash flows do not include the restricted funds and accrued interest.
15
| (e) | Inter-bank funds |
| Corresponds to loans made among financial institutions with maturity, in general, being less than 30 days. As of December 31, 2019, 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 and do not have specific guarantees. |
4. | Financial investments |
| (a) | This caption is made up as follows: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Financial investments |
|
|
|
|
|
|
|
|
Debt instruments measured at fair value through other comprehensive income (b) |
|
| 16,916,212 |
|
|
| 14,010,029 |
|
Investments at amortized cost (c) |
|
| 2,655,891 |
|
|
| 2,160,775 |
|
Investments at fair value through profit or loss (d) |
|
| 1,747,541 |
|
|
| 1,551,537 |
|
Equity instruments measured at fair value through other comprehensive income (e) |
|
| 1,271,326 |
|
|
| 1,125,722 |
|
Total financial investments |
|
| 22,590,970 |
|
|
| 18,848,063 |
|
Accrued income |
|
|
|
|
|
|
|
|
On debt instruments measured at fair value through other comprehensive income (b) |
|
| 178,423 |
|
|
| 178,444 |
|
On investments at amortized cost (c) |
|
| 18,486 |
|
|
| 46,211 |
|
Total |
|
| 22,787,879 |
|
|
| 19,072,718 |
|
16
| (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 September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, leasing and subordinated bonds (*) |
|
| 8,224,464 |
|
|
| 645,174 |
|
|
| (158,760 | ) |
|
| 8,710,878 |
|
| Oct-20 / Feb-97 |
|
| (0.28 | ) |
|
| 13.95 |
|
|
| (16.19 | ) |
|
| 41.24 |
|
Peruvian Sovereign Bonds |
|
| 5,408,486 |
|
|
| 317,329 |
|
|
| (3,339 | ) |
|
| 5,722,476 |
|
| Aug-24 / Feb-55 |
|
| 1.00 |
|
|
| 5.55 |
|
|
| — |
|
|
| — |
|
Negotiable Certificates of Deposit issued by BCRP |
|
| 1,209,664 |
|
|
| 4,176 |
|
|
| (3 | ) |
|
| 1,213,837 |
|
| Oct-20 / Mar-23 |
|
| 0.25 |
|
|
| 2.29 |
|
|
| — |
|
|
| — |
|
Bonds guaranteed by the Peruvian Government |
|
| 585,513 |
|
|
| 59,931 |
|
|
| — |
|
|
| 645,444 |
|
| Oct-24 / Jul-34 |
|
| 1.28 |
|
|
| 3.47 |
|
|
| 2.02 |
|
|
| 4.48 |
|
Global Bonds of the Republic of Peru |
|
| 446,822 |
|
|
| 3,784 |
|
|
| (233 | ) |
|
| 450,373 |
|
| Jul-25 / Aug-27 |
|
| — |
|
|
| — |
|
|
| 1.33 |
|
|
| 1.59 |
|
Global Bonds of the Republic of Colombia |
|
| 157,023 |
|
|
| 1,205 |
|
|
| — |
|
|
| 158,228 |
|
| Jul-21 / Feb-24 |
|
| — |
|
|
| — |
|
|
| 0.94 |
|
|
| 1.98 |
|
Global Bonds of the United Mexican States |
|
| 14,974 |
|
|
| 2 |
|
|
| — |
|
|
| 14,976 |
|
| Mar-22 |
|
| — |
|
|
| — |
|
|
| 0.80 |
|
|
| 0.80 |
|
Total |
|
| 16,046,946 |
|
|
| 1,031,601 |
|
|
| (162,335 | ) |
|
| 16,916,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 178,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,094,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 September 30, 2020 and December 31, 2019, Inteligo holds corporate bonds from different entities for approximately S/298,551,000 and S/440,409,000, respectively, which guarantee loans with Credit Suisse First Boston and Bank J. Safra Sarasin; see Note 9(a). |
17
|
| 30.09.2020 |
|
| 31.12.2019 |
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Issuer |
| Amortized Cost |
|
| Unrealized gross gain |
|
| Unrealized gross loss |
|
| Amortized Cost |
|
| Unrealized gross gain |
|
| Unrealized gross loss |
|
| Maturity as of September 30, 2020 |
|
| Risk rating as of September 30, 2020 (***) |
| ||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
|
|
|
|
|
|
|
| ||||||
Peruvian Sovereign Bonds |
|
| 5,408,486 |
|
|
| 317,329 |
|
|
| (3,339 | ) |
|
| 3,213,581 |
|
|
| 330,856 |
|
|
| (242 | ) |
| 2024-2055 |
|
| A- (*) |
| ||
Corporación Financiera de Desarrollo S.A. |
|
| 298,814 |
|
|
| 17,499 |
|
|
| (6,223 | ) |
|
| 374,631 |
|
|
| 30,197 |
|
|
| (1,438 | ) |
| 2029-2046 |
|
| AA (**) |
| ||
Rutas de Lima |
|
| 295,622 |
|
|
| — |
|
|
| (123,481 | ) |
|
| 285,047 |
|
|
| 46,465 |
|
|
| — |
|
| 2036-2039 |
|
| Less than B- (*) |
| ||
Latam Airlines |
|
| 14,035 |
|
|
| — |
|
|
| (8,943 | ) |
|
| 22,356 |
|
|
| 614 |
|
|
| — |
|
| 2024 |
|
| Less than B- (*) |
| ||
Instruments with individual losses minor than S/4 million |
|
| 1,380,649 |
|
|
| — |
|
|
| (20,349 | ) |
|
| 1,669,667 |
|
|
| 62,232 |
|
|
| (11,031 | ) |
|
| — |
|
|
| — |
|
Total |
|
| 7,397,606 |
|
|
| 334,828 |
|
|
| (162,335 | ) |
|
| 5,565,282 |
|
|
| 470,364 |
|
|
| (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. |
18
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:
|
| 30.09.2020 |
|
| 31.12.2019 |
|
| 30.09.2019 |
| |||
|
| 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 |
|
| 134 |
|
|
| 1,588 |
|
|
| 1,379 |
|
Assets derecognized or matured (excluding write-offs) |
|
| (868 | ) |
|
| (1,290 | ) |
|
| (1,146 | ) |
Others (*) |
|
| 55,929 |
|
|
| 6,492 |
|
|
| (1,762 | ) |
Loss (recovery) of the period to impairment on financial investments |
|
| 55,195 |
|
|
| 6,790 |
|
|
| (1,529 | ) |
Foreign exchange effect |
|
| 4,345 |
|
|
| (97 | ) |
|
| — |
|
Expected credit loss at the end of the period |
|
| 94,283 |
|
|
| 34,743 |
|
|
| 26,521 |
|
| (*) | As of September 30, 2020, mainly includes impairment allocated to Rutas de Lima for approximately S/49,567,000. |
| (c) | As of September 30, 2020, investments at amortized cost are comprised of Sovereign Bonds of the Republic of Peru issued in Soles and Corporate Bonds, for an amount of S/2,671,524,000 and S/2,853,000, respectively, including accrued interest (as of December 31, 2019 are entirely comprised of Sovereign Bonds of the Republic of Peru issued in Soles, for an amount of S/2,206,986,000, including accrued interest). |
As of September 30, 2020, the Sovereign Bonds of the Republic of Peru have maturity dates that range from September 2023 to August 2037, have accrued interest at effective annual rates ranging from 4.29 percent and 5.15 percent (as of December 31, 2019, these investments have maturity dates that range from September 2023 to August 2037, have accrued interest at effective annual rates ranging from 4.29 percent and 6.26 percent), and estimated fair value amounting to approximately S/2,890,132,000 and S/2,328,303,000, as of September 30, 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/340,518,000, generating a gain amounting to S/8,474,000, which was recorded within the caption “Gain from derecognition of financial investments at amortized cost” of the interim 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/340,432,000, 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 performed with the sole purpose of facilitating the debt renewal and the funding of the fiscal deficit of the Republic of Peru.
As of September 30, 2020 and December 31, 2019, Interbank hold loans with the BCRP that are guaranteed with these sovereign bonds of the Republic of Peru, classified as restricted, for approximately S/1,751,243,000 and S/762,347,000, respectively; see Note 9(a).
19
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Equity instruments |
|
|
|
|
|
|
|
|
Local and foreign mutual funds and investment funds participations |
|
| 1,173,662 |
|
|
| 1,083,079 |
|
BioPharma Credit PLC |
|
| 131,823 |
|
|
| 132,054 |
|
Royalty Pharma |
|
| 111,900 |
|
|
| 117,682 |
|
Others |
|
| 252,519 |
|
|
| 153,468 |
|
Debt instruments |
|
|
|
|
|
|
|
|
Corporate, leasing and subordinated bonds |
|
| 77,637 |
|
|
| 65,254 |
|
Total |
|
| 1,747,541 |
|
|
| 1,551,537 |
|
(e)The composition of equity instruments measured at fair value through other comprehensive income is presented below:
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
BioPharma Credit PLC |
|
| 359,691 |
|
|
| 336,338 |
|
InRetail Perú Corp |
|
| 292,645 |
|
|
| 285,962 |
|
ViaSat Inc. |
|
| 122,453 |
|
|
| — |
|
Ishares |
|
| 114,019 |
|
|
| 140,198 |
|
Luz del Sur S.A.A. |
|
| 95,671 |
|
|
| 87,983 |
|
Engie-Energía Perú S.A. |
|
| 84,895 |
|
|
| 90,670 |
|
Ferreycorp S.A.A. |
|
| 74,209 |
|
|
| 83,013 |
|
Credicorp |
|
| 52,663 |
|
|
| 18,030 |
|
Cementos Pacasmayo S.A.A. |
|
| 34,515 |
|
|
| 13,602 |
|
Others minor than S/17 million |
|
| 40,565 |
|
|
| 69,926 |
|
Total |
|
| 1,271,326 |
|
|
| 1,125,722 |
|
| (f) | 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.
20
For more information, see Note 30.1 of the Annual Consolidated Financial Statements.
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 September 30, 2020 and December 31, 2019:
|
| 30.09.2020 |
|
| 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 |
|
| 8,505,574 |
|
|
| 203,005 |
|
|
| 5,092 |
|
|
| 8,713,671 |
|
|
| 7,866,111 |
|
|
| 333,175 |
|
|
| — |
|
|
| 8,199,286 |
|
Peruvian Sovereign Bonds |
|
| 8,375,574 |
|
|
| — |
|
|
| — |
|
|
| 8,375,574 |
|
|
| 5,704,970 |
|
|
| — |
|
|
| — |
|
|
| 5,704,970 |
|
Negotiable Certificates of Deposit issued by BCRP |
|
| 1,213,837 |
|
|
| — |
|
|
| — |
|
|
| 1,213,837 |
|
|
| 1,483,493 |
|
|
| — |
|
|
| — |
|
|
| 1,483,493 |
|
Bonds guaranteed by the Peruvian Government |
|
| 645,444 |
|
|
| — |
|
|
| — |
|
|
| 645,444 |
|
|
| 668,073 |
|
|
| — |
|
|
| — |
|
|
| 668,073 |
|
Global Bonds of the Republic of Peru |
|
| 450,373 |
|
|
| — |
|
|
| — |
|
|
| 450,373 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Global Bonds of the Republic of Colombia |
|
| 158,228 |
|
|
| — |
|
|
| — |
|
|
| 158,228 |
|
|
| 114,982 |
|
|
| — |
|
|
| — |
|
|
| 114,982 |
|
Global Bonds of the United Mexican States |
|
| 14,976 |
|
|
| — |
|
|
| — |
|
|
| 14,976 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total |
|
| 19,364,006 |
|
|
| 203,005 |
|
|
| 5,092 |
|
|
| 19,572,103 |
|
|
| 15,837,629 |
|
|
| 333,175 |
|
|
| — |
|
|
| 16,170,804 |
|
5. | Loans, net |
| (a) | This caption is made up as follows: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Direct loans |
|
|
|
|
|
|
|
|
Loans |
|
| 34,968,223 |
|
|
| 28,504,689 |
|
Credit cards |
|
| 4,898,967 |
|
|
| 5,876,983 |
|
Leasing |
|
| 1,269,016 |
|
|
| 1,533,395 |
|
Discounted notes |
|
| 439,924 |
|
|
| 686,164 |
|
Factoring |
|
| 504,976 |
|
|
| 374,192 |
|
Advances and overdrafts |
|
| 61,245 |
|
|
| 87,373 |
|
Refinanced loans |
|
| 272,770 |
|
|
| 251,180 |
|
Past due and under legal collection loans |
|
| 1,146,971 |
|
|
| 943,168 |
|
|
|
| 43,562,092 |
|
|
| 38,257,144 |
|
Plus (minus) |
|
|
|
|
|
|
|
|
Accrued interest from performing loans |
|
| 419,049 |
|
|
| 316,171 |
|
Unearned interest and interest collected in advance |
|
| (18,210 | ) |
|
| (41,683 | ) |
Impairment allowance for loans (d) |
|
| (3,116,452 | ) |
|
| (1,394,779 | ) |
Total direct loans, net |
|
| 40,846,479 |
|
|
| 37,136,853 |
|
Indirect loans |
|
| 4,582,439 |
|
|
| 4,101,977 |
|
21
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| (*) |
|
|
|
|
| |
|
| S/(000) |
|
| S/(000) |
| ||
Commercial loans (c.1) (**) |
|
| 22,023,033 |
|
|
| 17,479,006 |
|
Consumer loans (c.1) |
|
| 11,853,157 |
|
|
| 12,821,567 |
|
Mortgage loans (c.1) |
|
| 7,470,447 |
|
|
| 7,206,445 |
|
Small and micro-business loans (c.1) |
|
| 2,215,455 |
|
|
| 750,126 |
|
Total |
|
| 43,562,092 |
|
|
| 38,257,144 |
|
| (*) | As of September 30, 2020, the balance of the direct loan portfolio includes disbursements made by Interbank within the “Reactiva Perú” program for approximately S/6,709 million, out of which S/4,731 million were granted to clients of its commercial portfolio and S/1,978 million to clients of its small and micro- business portfolio. |
|
| (**) | In 2019, Interbank acquired a commercial loan from Sumitomo Mitsui Banking Corporation for an amount of S/164,950,000. |
|
22
|
| 30.09.2020 |
|
| 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 |
|
| 31,361,155 |
|
|
| 1,219,718 |
|
|
| — |
|
|
| 32,580,873 |
|
|
| 28,314,167 |
|
|
| 271,610 |
|
|
| — |
|
|
| 28,585,777 |
|
Standard grade |
|
| 5,167,028 |
|
|
| 1,184,629 |
|
|
| — |
|
|
| 6,351,657 |
|
|
| 4,675,010 |
|
|
| 528,372 |
|
|
| — |
|
|
| 5,203,382 |
|
Sub-standard grade |
|
| 788,162 |
|
|
| 743,694 |
|
|
| — |
|
|
| 1,531,856 |
|
|
| 358,527 |
|
|
| 969,387 |
|
|
| — |
|
|
| 1,327,914 |
|
Past due but not impaired |
|
| 713,427 |
|
|
| 1,113,863 |
|
|
| — |
|
|
| 1,827,290 |
|
|
| 1,474,310 |
|
|
| 770,876 |
|
|
| — |
|
|
| 2,245,186 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| 7,695 |
|
|
| 7,695 |
|
|
| — |
|
|
| — |
|
|
| 8,444 |
|
|
| 8,444 |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 1,262,721 |
|
|
| 1,262,721 |
|
|
| — |
|
|
| — |
|
|
| 886,441 |
|
|
| 886,441 |
|
Total direct loans |
|
| 38,029,772 |
|
|
| 4,261,904 |
|
|
| 1,270,416 |
|
|
| 43,562,092 |
|
|
| 34,822,014 |
|
|
| 2,540,245 |
|
|
| 894,885 |
|
|
| 38,257,144 |
|
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||||||||||
Indirect 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 |
|
| 4,127,420 |
|
|
| 268,195 |
|
|
| — |
|
|
| 4,395,615 |
|
|
| 3,733,040 |
|
|
| 62,860 |
|
|
| — |
|
|
| 3,795,900 |
|
Standard grade |
|
| 106,425 |
|
|
| 41,346 |
|
|
| — |
|
|
| 147,771 |
|
|
| 108,515 |
|
|
| 118,463 |
|
|
| — |
|
|
| 226,978 |
|
Sub-standard grade |
|
| 88 |
|
|
| 7,230 |
|
|
| — |
|
|
| 7,318 |
|
|
| 7,597 |
|
|
| 41,095 |
|
|
| — |
|
|
| 48,692 |
|
Past due but not impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| 22,607 |
|
|
| 22,607 |
|
|
| — |
|
|
| — |
|
|
| 22,607 |
|
|
| 22,607 |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 9,128 |
|
|
| 9,128 |
|
|
| — |
|
|
| — |
|
|
| 7,800 |
|
|
| 7,800 |
|
Total indirect loans |
|
| 4,233,933 |
|
|
| 316,771 |
|
|
| 31,735 |
|
|
| 4,582,439 |
|
|
| 3,849,152 |
|
|
| 222,418 |
|
|
| 30,407 |
|
|
| 4,101,977 |
|
23
(c.1)The following tables show the credit quality and maximum exposure to credit risk for each classification of the direct loan portfolio:
|
| 30.09.2020 |
|
| 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 |
|
| 16,489,067 |
|
|
| 800,450 |
|
|
| — |
|
|
| 17,289,517 |
|
|
| 12,786,786 |
|
|
| 53,449 |
|
|
| — |
|
|
| 12,840,235 |
|
Standard grade |
|
| 2,868,805 |
|
|
| 778,828 |
|
|
| — |
|
|
| 3,647,633 |
|
|
| 2,605,473 |
|
|
| 127,347 |
|
|
| — |
|
|
| 2,732,820 |
|
Sub-standard grade |
|
| 131,566 |
|
|
| 138,872 |
|
|
| — |
|
|
| 270,438 |
|
|
| 132,707 |
|
|
| 401,991 |
|
|
| — |
|
|
| 534,698 |
|
Past due but not impaired |
|
| 316,604 |
|
|
| 260,171 |
|
|
| — |
|
|
| 576,775 |
|
|
| 1,069,813 |
|
|
| 102,267 |
|
|
| — |
|
|
| 1,172,080 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| 7,695 |
|
|
| 7,695 |
|
|
| — |
|
|
| — |
|
|
| 8,444 |
|
|
| 8,444 |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 230,975 |
|
|
| 230,975 |
|
|
| — |
|
|
| — |
|
|
| 190,729 |
|
|
| 190,729 |
|
Total commercial loans |
|
| 19,806,042 |
|
|
| 1,978,321 |
|
|
| 238,670 |
|
|
| 22,023,033 |
|
|
| 16,594,779 |
|
|
| 685,054 |
|
|
| 199,173 |
|
|
| 17,479,006 |
|
|
| 30.09.2020 |
|
| 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 |
|
| 7,680,120 |
|
|
| 301,838 |
|
|
| — |
|
|
| 7,981,958 |
|
|
| 9,319,421 |
|
|
| 176,764 |
|
|
| — |
|
|
| 9,496,185 |
|
Standard grade |
|
| 1,193,570 |
|
|
| 331,341 |
|
|
| — |
|
|
| 1,524,911 |
|
|
| 1,443,966 |
|
|
| 311,673 |
|
|
| — |
|
|
| 1,755,639 |
|
Sub-standard grade |
|
| 321,287 |
|
|
| 451,408 |
|
|
| — |
|
|
| 772,695 |
|
|
| 196,126 |
|
|
| 362,228 |
|
|
| — |
|
|
| 558,354 |
|
Past due but not impaired |
|
| 186,742 |
|
|
| 722,645 |
|
|
| — |
|
|
| 909,387 |
|
|
| 167,295 |
|
|
| 443,693 |
|
|
| — |
|
|
| 610,988 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 664,206 |
|
|
| 664,206 |
|
|
| — |
|
|
| — |
|
|
| 400,401 |
|
|
| 400,401 |
|
Total consumer loans |
|
| 9,381,719 |
|
|
| 1,807,232 |
|
|
| 664,206 |
|
|
| 11,853,157 |
|
|
| 11,126,808 |
|
|
| 1,294,358 |
|
|
| 400,401 |
|
|
| 12,821,567 |
|
24
|
| 30.09.2020 |
|
| 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 |
|
| 5,547,978 |
|
|
| 12,726 |
|
|
| — |
|
|
| 5,560,704 |
|
|
| 5,676,737 |
|
|
| 21,775 |
|
|
| — |
|
|
| 5,698,512 |
|
Standard grade |
|
| 839,512 |
|
|
| 65,464 |
|
|
| — |
|
|
| 904,976 |
|
|
| 550,656 |
|
|
| 65,662 |
|
|
| — |
|
|
| 616,318 |
|
Sub-standard grade |
|
| 297,769 |
|
|
| 95,699 |
|
|
| — |
|
|
| 393,468 |
|
|
| 25,855 |
|
|
| 190,605 |
|
|
| — |
|
|
| 216,460 |
|
Past due but not impaired |
|
| 199,258 |
|
|
| 92,323 |
|
|
| — |
|
|
| 291,581 |
|
|
| 225,687 |
|
|
| 201,506 |
|
|
| — |
|
|
| 427,193 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 319,718 |
|
|
| 319,718 |
|
|
| — |
|
|
| — |
|
|
| 247,962 |
|
|
| 247,962 |
|
Total mortgage loans |
|
| 6,884,517 |
|
|
| 266,212 |
|
|
| 319,718 |
|
|
| 7,470,447 |
|
|
| 6,478,935 |
|
|
| 479,548 |
|
|
| 247,962 |
|
|
| 7,206,445 |
|
|
| 30.09.2020 |
|
| 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 |
|
| 1,643,990 |
|
|
| 104,704 |
|
|
| — |
|
|
| 1,748,694 |
|
|
| 531,223 |
|
|
| 19,622 |
|
|
| — |
|
|
| 550,845 |
|
Standard grade |
|
| 265,141 |
|
|
| 8,996 |
|
|
| — |
|
|
| 274,137 |
|
|
| 74,915 |
|
|
| 23,690 |
|
|
| — |
|
|
| 98,605 |
|
Sub-standard grade |
|
| 37,540 |
|
|
| 57,715 |
|
|
| — |
|
|
| 95,255 |
|
|
| 3,839 |
|
|
| 14,563 |
|
|
| — |
|
|
| 18,402 |
|
Past due but not impaired |
|
| 10,823 |
|
|
| 38,724 |
|
|
| — |
|
|
| 49,547 |
|
|
| 11,515 |
|
|
| 23,410 |
|
|
| — |
|
|
| 34,925 |
|
Impaired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually impaired |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Collectively impaired |
|
| — |
|
|
| — |
|
|
| 47,822 |
|
|
| 47,822 |
|
|
| — |
|
|
| — |
|
|
| 47,349 |
|
|
| 47,349 |
|
Total small and micro-business loans |
|
| 1,957,494 |
|
|
| 210,139 |
|
|
| 47,822 |
|
|
| 2,215,455 |
|
|
| 621,492 |
|
|
| 81,285 |
|
|
| 47,349 |
|
|
| 750,126 |
|
Total direct loans |
|
| 38,029,772 |
|
|
| 4,261,904 |
|
|
| 1,270,416 |
|
|
| 43,562,092 |
|
|
| 34,822,014 |
|
|
| 2,540,245 |
|
|
| 894,885 |
|
|
| 38,257,144 |
|
25
| (d.1) | Direct loans |
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 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 |
|
| 389,605 |
|
|
| — |
|
|
| — |
|
|
| 389,605 |
|
|
| 278,019 |
|
|
| — |
|
|
| — |
|
|
| 278,019 |
|
|
| 317,473 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (60,504 | ) |
|
| (39,894 | ) |
|
| (26,209 | ) |
|
| (126,607 | ) |
|
| (76,795 | ) |
|
| (63,238 | ) |
|
| (29,628 | ) |
|
| (169,661 | ) |
|
| (223,510 | ) |
Transfers to Stage 1 |
|
| 70,331 |
|
|
| (69,046 | ) |
|
| (1,285 | ) |
|
| — |
|
|
| 115,258 |
|
|
| (113,531 | ) |
|
| (1,727 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (170,659 | ) |
|
| 183,759 |
|
|
| (13,100 | ) |
|
| — |
|
|
| (121,432 | ) |
|
| 137,435 |
|
|
| (16,003 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (39,234 | ) |
|
| (146,244 | ) |
|
| 185,478 |
|
|
| — |
|
|
| (44,611 | ) |
|
| (124,348 | ) |
|
| 168,959 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (25,172 | ) |
|
| 290,770 |
|
|
| 466,078 |
|
|
| 731,676 |
|
|
| (86,878 | ) |
|
| 128,835 |
|
|
| 457,840 |
|
|
| 499,797 |
|
|
| 707,008 |
|
Others |
|
| 776,148 |
|
|
| 328,803 |
|
|
| (45,264 | ) |
|
| 1,059,687 |
|
|
| 44,703 |
|
|
| (28,211 | ) |
|
| (1,870 | ) |
|
| 14,622 |
|
|
| (28,228 | ) |
Total (*) |
|
| 940,515 |
|
|
| 548,148 |
|
|
| 565,698 |
|
|
| 2,054,361 |
|
|
| 108,264 |
|
|
| (63,058 | ) |
|
| 577,571 |
|
|
| 622,777 |
|
|
| 772,743 |
|
Write-offs (**) |
|
| — |
|
|
| — |
|
|
| (436,401 | ) |
|
| (436,401 | ) |
|
| — |
|
|
| — |
|
|
| (624,988 | ) |
|
| (624,988 | ) |
|
| (874,068 | ) |
Recovery of written–off loans |
|
| — |
|
|
| — |
|
|
| 73,735 |
|
|
| 73,735 |
|
|
| — |
|
|
| — |
|
|
| 102,020 |
|
|
| 102,020 |
|
|
| 136,468 |
|
Foreign exchange effect (***) |
|
| 6,723 |
|
|
| 6,030 |
|
|
| 17,225 |
|
|
| 29,978 |
|
|
| 61 |
|
|
| 139 |
|
|
| 246 |
|
|
| 446 |
|
|
| (5,168 | ) |
Expected credit loss at the end of period balances |
|
| 1,409,130 |
|
|
| 948,951 |
|
|
| 758,371 |
|
|
| 3,116,452 |
|
|
| 503,126 |
|
|
| 399,830 |
|
|
| 562,103 |
|
|
| 1,465,059 |
|
|
| 1,394,779 |
|
26
(d.1.1) The following tables show the movement of the allowance for expected credit losses for each classification of the direct loan portfolio:
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 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 |
|
| 101,235 |
|
|
| — |
|
|
| — |
|
|
| 101,235 |
|
|
| 51,240 |
|
|
| — |
|
|
| — |
|
|
| 51,240 |
|
|
| 42,558 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (17,645 | ) |
|
| (3,902 | ) |
|
| (1,240 | ) |
|
| (22,787 | ) |
|
| (27,270 | ) |
|
| (7,851 | ) |
|
| (2,310 | ) |
|
| (37,431 | ) |
|
| (54,346 | ) |
Transfers to Stage 1 |
|
| 2,698 |
|
|
| (2,698 | ) |
|
| — |
|
|
| — |
|
|
| 7,623 |
|
|
| (7,623 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (29,164 | ) |
|
| 29,164 |
|
|
| — |
|
|
| — |
|
|
| (12,062 | ) |
|
| 13,233 |
|
|
| (1,171 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (583 | ) |
|
| (2,878 | ) |
|
| 3,461 |
|
|
| — |
|
|
| (5,924 | ) |
|
| (3,441 | ) |
|
| 9,365 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| 4,482 |
|
|
| 17,684 |
|
|
| 22,921 |
|
|
| 45,087 |
|
|
| (5,466 | ) |
|
| 3,445 |
|
|
| 20,976 |
|
|
| 18,955 |
|
|
| 29,078 |
|
Others |
|
| (7,202 | ) |
|
| (19,133 | ) |
|
| (7,006 | ) |
|
| (33,341 | ) |
|
| (2,953 | ) |
|
| (1,038 | ) |
|
| 2,701 |
|
|
| (1,290 | ) |
|
| (35,128 | ) |
Total (*) |
|
| 53,821 |
|
|
| 18,237 |
|
|
| 18,136 |
|
|
| 90,194 |
|
|
| 5,188 |
|
|
| (3,275 | ) |
|
| 29,561 |
|
|
| 31,474 |
|
|
| (17,838 | ) |
Write-offs (**) |
|
| — |
|
|
| — |
|
|
| (18,502 | ) |
|
| (18,502 | ) |
|
| — |
|
|
| — |
|
|
| (14,892 | ) |
|
| (14,892 | ) |
|
| (29,800 | ) |
Recovery of written–off loans |
|
| — |
|
|
| — |
|
|
| 636 |
|
|
| 636 |
|
|
| — |
|
|
| — |
|
|
| 794 |
|
|
| 794 |
|
|
| 968 |
|
Foreign exchange effect (***) |
|
| 6,361 |
|
|
| 2,883 |
|
|
| 5,565 |
|
|
| 14,809 |
|
|
| 72 |
|
|
| 22 |
|
|
| 78 |
|
|
| 172 |
|
|
| (1,293 | ) |
Expected credit loss at the end of period balances |
|
| 114,875 |
|
|
| 45,519 |
|
|
| 72,993 |
|
|
| 233,387 |
|
|
| 73,965 |
|
|
| 24,144 |
|
|
| 113,652 |
|
|
| 211,761 |
|
|
| 146,250 |
|
27
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 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 |
|
| 146,551 |
|
|
| — |
|
|
| — |
|
|
| 146,551 |
|
|
| 212,112 |
|
|
| — |
|
|
| — |
|
|
| 212,112 |
|
|
| 257,150 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (39,799 | ) |
|
| (34,019 | ) |
|
| (16,216 | ) |
|
| (90,034 | ) |
|
| (45,399 | ) |
|
| (53,188 | ) |
|
| (14,784 | ) |
|
| (113,371 | ) |
|
| (144,325 | ) |
Transfers to Stage 1 |
|
| 52,659 |
|
|
| (51,374 | ) |
|
| (1,285 | ) |
|
| — |
|
|
| 99,576 |
|
|
| (97,849 | ) |
|
| (1,727 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (107,379 | ) |
|
| 111,212 |
|
|
| (3,833 | ) |
|
| — |
|
|
| (103,964 | ) |
|
| 108,727 |
|
|
| (4,763 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (37,710 | ) |
|
| (134,713 | ) |
|
| 172,423 |
|
|
| — |
|
|
| (36,496 | ) |
|
| (111,248 | ) |
|
| 147,744 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (39,713 | ) |
|
| 258,544 |
|
|
| 368,207 |
|
|
| 587,038 |
|
|
| (74,115 | ) |
|
| 117,313 |
|
|
| 385,542 |
|
|
| 428,740 |
|
|
| 607,998 |
|
Others |
|
| 790,829 |
|
|
| 364,575 |
|
|
| 10,646 |
|
|
| 1,166,050 |
|
|
| 51,445 |
|
|
| (26,937 | ) |
|
| (3,620 | ) |
|
| 20,888 |
|
|
| 9,467 |
|
Total (*) |
|
| 765,438 |
|
|
| 514,225 |
|
|
| 529,942 |
|
|
| 1,809,605 |
|
|
| 103,159 |
|
|
| (63,182 | ) |
|
| 508,392 |
|
|
| 548,369 |
|
|
| 730,290 |
|
Write-offs (**) |
|
| — |
|
|
| — |
|
|
| (394,320 | ) |
|
| (394,320 | ) |
|
| — |
|
|
| — |
|
|
| (570,973 | ) |
|
| (570,973 | ) |
|
| (785,863 | ) |
Recovery of written–off loans |
|
| — |
|
|
| — |
|
|
| 70,130 |
|
|
| 70,130 |
|
|
| — |
|
|
| — |
|
|
| 97,068 |
|
|
| 97,068 |
|
|
| 130,184 |
|
Foreign exchange effect (***) |
|
| 130 |
|
|
| 2,449 |
|
|
| 5,916 |
|
|
| 8,495 |
|
|
| 8 |
|
|
| 119 |
|
|
| 214 |
|
|
| 341 |
|
|
| (2,962 | ) |
Expected credit loss at the end of period balances |
|
| 1,150,557 |
|
|
| 849,371 |
|
|
| 552,582 |
|
|
| 2,552,510 |
|
|
| 407,120 |
|
|
| 335,290 |
|
|
| 319,346 |
|
|
| 1,061,756 |
|
|
| 1,058,600 |
|
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 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 |
|
| 2,328 |
|
|
| — |
|
|
| — |
|
|
| 2,328 |
|
|
| 1,621 |
|
|
| — |
|
|
| — |
|
|
| 1,621 |
|
|
| 2,153 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (674 | ) |
|
| (1,070 | ) |
|
| (7,736 | ) |
|
| (9,480 | ) |
|
| (639 | ) |
|
| (793 | ) |
|
| (9,914 | ) |
|
| (11,346 | ) |
|
| (15,205 | ) |
Transfers to Stage 1 |
|
| 12,710 |
|
|
| (12,710 | ) |
|
| — |
|
|
| — |
|
|
| 6,287 |
|
|
| (6,287 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (919 | ) |
|
| 10,115 |
|
|
| (9,196 | ) |
|
| — |
|
|
| (1,052 | ) |
|
| 11,068 |
|
|
| (10,016 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (455 | ) |
|
| (4,255 | ) |
|
| 4,710 |
|
|
| — |
|
|
| (229 | ) |
|
| (3,073 | ) |
|
| 3,302 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| 10,938 |
|
|
| 2,252 |
|
|
| 62,919 |
|
|
| 76,109 |
|
|
| (5,753 | ) |
|
| 1,684 |
|
|
| 24,979 |
|
|
| 20,910 |
|
|
| 28,120 |
|
Others |
|
| 44,085 |
|
|
| 2,013 |
|
|
| (49,114 | ) |
|
| (3,016 | ) |
|
| 541 |
|
|
| (622 | ) |
|
| (2,733 | ) |
|
| (2,814 | ) |
|
| (1,845 | ) |
Total (*) |
|
| 68,013 |
|
|
| (3,655 | ) |
|
| 1,583 |
|
|
| 65,941 |
|
|
| 776 |
|
|
| 1,977 |
|
|
| 5,618 |
|
|
| 8,371 |
|
|
| 13,223 |
|
Write-offs (**) |
|
| — |
|
|
| — |
|
|
| (2,548 | ) |
|
| (2,548 | ) |
|
| — |
|
|
| — |
|
|
| (1,386 | ) |
|
| (1,386 | ) |
|
| (5,427 | ) |
Recovery of written–off loans |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Foreign exchange effect (***) |
|
| 202 |
|
|
| 693 |
|
|
| 5,479 |
|
|
| 6,374 |
|
|
| 2 |
|
|
| 6 |
|
|
| 50 |
|
|
| 58 |
|
|
| (724 | ) |
Expected credit loss at the end of period balances |
|
| 77,633 |
|
|
| 19,826 |
|
|
| 93,990 |
|
|
| 191,449 |
|
|
| 9,206 |
|
|
| 22,125 |
|
|
| 90,322 |
|
|
| 121,653 |
|
|
| 121,682 |
|
28
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 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 |
|
| 139,491 |
|
|
| — |
|
|
| — |
|
|
| 139,491 |
|
|
| 13,046 |
|
|
| — |
|
|
| — |
|
|
| 13,046 |
|
|
| 15,612 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (2,386 | ) |
|
| (903 | ) |
|
| (1,017 | ) |
|
| (4,306 | ) |
|
| (3,487 | ) |
|
| (1,406 | ) |
|
| (2,620 | ) |
|
| (7,513 | ) |
|
| (9,634 | ) |
Transfers to Stage 1 |
|
| 2,264 |
|
|
| (2,264 | ) |
|
| — |
|
|
| — |
|
|
| 1,772 |
|
|
| (1,772 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (33,197 | ) |
|
| 33,268 |
|
|
| (71 | ) |
|
| — |
|
|
| (4,354 | ) |
|
| 4,407 |
|
|
| (53 | ) |
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (486 | ) |
|
| (4,398 | ) |
|
| 4,884 |
|
|
| — |
|
|
| (1,962 | ) |
|
| (6,586 | ) |
|
| 8,548 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (879 | ) |
|
| 12,290 |
|
|
| 12,031 |
|
|
| 23,442 |
|
|
| (1,544 | ) |
|
| 6,393 |
|
|
| 26,343 |
|
|
| 31,192 |
|
|
| 41,812 |
|
Others |
|
| (51,564 | ) |
|
| (18,652 | ) |
|
| 210 |
|
|
| (70,006 | ) |
|
| (4,330 | ) |
|
| 386 |
|
|
| 1,782 |
|
|
| (2,162 | ) |
|
| (722 | ) |
Total (*) |
|
| 53,243 |
|
|
| 19,341 |
|
|
| 16,037 |
|
|
| 88,621 |
|
|
| (859 | ) |
|
| 1,422 |
|
|
| 34,000 |
|
|
| 34,563 |
|
|
| 47,068 |
|
Write-offs (**) |
|
| — |
|
|
| — |
|
|
| (21,031 | ) |
|
| (21,031 | ) |
|
| — |
|
|
| — |
|
|
| (37,737 | ) |
|
| (37,737 | ) |
|
| (52,978 | ) |
Recovery of written–off loans |
|
| — |
|
|
| — |
|
|
| 2,969 |
|
|
| 2,969 |
|
|
| — |
|
|
| — |
|
|
| 4,158 |
|
|
| 4,158 |
|
|
| 5,316 |
|
Foreign exchange effect (***) |
|
| 30 |
|
|
| 5 |
|
|
| 265 |
|
|
| 300 |
|
|
| (21 | ) |
|
| (8 | ) |
|
| (96 | ) |
|
| (125 | ) |
|
| (189 | ) |
Expected credit loss at the end of period balances |
|
| 66,065 |
|
|
| 34,235 |
|
|
| 38,806 |
|
|
| 139,106 |
|
|
| 12,835 |
|
|
| 18,271 |
|
|
| 38,783 |
|
|
| 69,889 |
|
|
| 68,247 |
|
29
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 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 |
|
| 3,519 |
|
|
| — |
|
|
| — |
|
|
| 3,519 |
|
|
| 6,396 |
|
|
| — |
|
|
| — |
|
|
| 6,396 |
|
|
| 6,937 |
|
Assets derecognized or repaid (excluding write offs) |
|
| (2,102 | ) |
|
| (551 | ) |
|
| (149 | ) |
|
| (2,802 | ) |
|
| (9,329 | ) |
|
| (5,809 | ) |
|
| (3,302 | ) |
|
| (18,440 | ) |
|
| (19,800 | ) |
Transfers to Stage 1 |
|
| 1,746 |
|
|
| (1,746 | ) |
|
| — |
|
|
| — |
|
|
| 9,180 |
|
|
| (9,180 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 2 |
|
| (574 | ) |
|
| 574 |
|
|
| — |
|
|
| — |
|
|
| (1,928 | ) |
|
| 1,928 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Transfers to Stage 3 |
|
| (90 | ) |
|
| (39 | ) |
|
| 129 |
|
|
| — |
|
|
| (183 | ) |
|
| (9 | ) |
|
| 192 |
|
|
| — |
|
|
| — |
|
Impact on the expected credit loss for credits that change stage in the period |
|
| (1,250 | ) |
|
| 479 |
|
|
| 720 |
|
|
| (51 | ) |
|
| (3,450 | ) |
|
| (1,225 | ) |
|
| 390 |
|
|
| (4,285 | ) |
|
| (4,329 | ) |
Others |
|
| 12,115 |
|
|
| (367 | ) |
|
| (350 | ) |
|
| 11,398 |
|
|
| (639 | ) |
|
| (1,803 | ) |
|
| (1,049 | ) |
|
| (3,491 | ) |
|
| (4,740 | ) |
Total (*) |
|
| 13,364 |
|
|
| (1,650 | ) |
|
| 350 |
|
|
| 12,064 |
|
|
| 47 |
|
|
| (16,098 | ) |
|
| (3,769 | ) |
|
| (19,820 | ) |
|
| (21,932 | ) |
Write-offs (**) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Recovery of written–off loans |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Foreign exchange effect and others (***) |
|
| 654 |
|
|
| 295 |
|
|
| 41 |
|
|
| 990 |
|
|
| 28 |
|
|
| 41 |
|
|
| 2 |
|
|
| 71 |
|
|
| (425 | ) |
Expected credit loss at the end of period balances |
|
| 30,385 |
|
|
| 3,365 |
|
|
| 18,998 |
|
|
| 52,748 |
|
|
| 19,904 |
|
|
| 3,696 |
|
|
| 18,702 |
|
|
| 42,302 |
|
|
| 39,694 |
|
(*) | As of September 30, 2020, the increase in loan impairment loss, net of recoveries, corresponds to greater provision requirements, mainly in the consumer loan portfolio related to adjustments performed in the calculation model of expected credit loss of Interbank’s clients aimed to face the impact of Covid-19; see Note 1(b). |
(**) | The Group writes-off financial assets that are still subject to collection activities. In this regard, the Group seeks to recover the amounts legally owed in full but have been written off because there is no reasonable expectation of recovery. |
(***)Corresponds mainly to the effect of the exchange rate and the variation of the time value of money.
30
| (a) | This caption is made up as follows: |
|
| 30.09.2020 |
|
| 31.12.2019 |
|
| Acquisition or construction year |
|
| Valuation methodology as of September 30, 2020 and December 31, 2019 | |||
|
| S/(000) |
|
| S/(000) |
|
|
|
|
|
|
| ||
Land |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Isidro – Lima |
|
| 239,506 |
|
|
| 239,152 |
|
|
| 2009 |
|
| Appraisal |
San Martín de Porres – Lima |
|
| 78,162 |
|
|
| 72,013 |
|
|
| 2015 |
|
| Appraisal |
Piura |
|
| 32,839 |
|
|
| 50,396 |
|
|
| 2008 |
|
| Appraisal |
Sullana |
|
| 17,952 |
|
|
| 16,540 |
|
|
| 2012 |
|
| Appraisal |
Santa Clara – Lima |
|
| 14,068 |
|
|
| 12,961 |
|
|
| 2017 |
|
| Appraisal |
Others |
|
| 9,130 |
|
|
| 8,727 |
|
| - |
|
| DCF/Appraisal | |
|
|
| 391,657 |
|
|
| 399,789 |
|
|
|
|
|
|
|
Completed investment property - “Real Plaza” Shopping Malls |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Talara |
|
| 35,480 |
|
|
| 37,772 |
|
|
| 2015 |
|
| DCF |
|
|
| 35,480 |
|
|
| 37,772 |
|
|
|
|
|
|
|
Buildings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orquídeas - San Isidro - Lima |
|
| 166,384 |
|
|
| 168,787 |
|
|
| 2017 |
|
| DCF |
Ate Vitarte – Lima |
|
| 109,204 |
|
|
| 82,925 |
|
|
| 2006 |
|
| DCF |
Piura |
|
| 71,338 |
|
|
| — |
|
|
| 2020 |
|
| DCF |
Chorrillos – Lima |
|
| 66,944 |
|
|
| 71,680 |
|
|
| 2017 |
|
| DCF |
Chimbote |
|
| 41,658 |
|
|
| 49,898 |
|
|
| 2015 |
|
| DCF |
Maestro-Huancayo |
|
| 32,518 |
|
|
| 34,569 |
|
|
| 2017 |
|
| DCF |
Cusco |
|
| 31,110 |
|
|
| 30,774 |
|
|
| 2017 |
|
| DCF |
Pardo y Aliaga – Lima |
|
| 23,105 |
|
|
| 19,963 |
|
|
| 2008 |
|
| DCF |
Panorama – Lima |
|
| 20,453 |
|
|
| 21,819 |
|
|
| 2016 |
|
| DCF |
Trujillo |
|
| 17,815 |
|
|
| 17,600 |
|
|
| 2016 |
|
| DCF |
Cercado de Lima – Lima |
|
| 14,560 |
|
|
| 13,545 |
|
|
| 2017 |
|
| DCF |
Others |
|
| 22,545 |
|
|
| 22,975 |
|
|
| 2017 |
|
| DCF |
|
|
| 617,634 |
|
|
| 534,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
| 1,044,771 |
|
|
| 972,096 |
|
|
|
|
|
|
|
DCF: Discounted cash flow
| i) | As of September 30, 2020 and December 31, 2019, there are no liens on investment property. |
| (b) | The net gain on investment properties as of September 30, 2020 and 2019, consists of the following: |
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Gain on valuation of investment property |
|
| 11,919 |
|
|
| 44,655 |
|
Income from rental of investment property |
|
| 29,289 |
|
|
| 36,473 |
|
Loss on sale of investment property (e) |
|
| — |
|
|
| (5,936 | ) |
Total |
|
| 41,208 |
|
|
| 75,192 |
|
31
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Beginning of period balances |
|
| 972,096 |
|
|
| 986,538 |
|
Additions (d) |
|
| 55,555 |
|
|
| 16,259 |
|
Sales (e) |
|
| — |
|
|
| (85,256 | ) |
Valuation gain |
|
| 11,919 |
|
|
| 44,655 |
|
Net transfers |
|
| 5,201 |
|
|
| — |
|
Balance as of September 30 |
|
| 1,044,771 |
|
|
| 962,196 |
|
Balance as of December 31, 2019 |
|
|
|
|
|
| 972,096 |
|
| (d) | Annual variation corresponds mainly to outlays related to the purchase of the "Piura" building, which was acquired in cash from a related entity. |
During 2019, main additions are outlays related to the construction of the “Chimbote” and “Chorrillos” educational centers.
| (e) | During 2019, Interseguro sold to a related entity in cash and at market value, a percentage of the land located in Miraflores, Lima (called “Cuartel San Martin”); recognizing a net loss of approximately S/1,556,000. The result of the sale of investment property is presented as "Net gain on investment property" in the interim consolidated statement of income. |
| (f) | 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. |
32
7. | Other accounts receivable and other assets, net, and other accounts payable, provisions and other liabilities |
| (a) | These captions are comprised of the following: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Accounts receivable and other assets, net |
|
|
|
|
|
|
|
|
Financial instruments |
|
|
|
|
|
|
|
|
Accounts receivable related to derivative financial instruments (b) |
|
| 523,185 |
|
|
| 220,776 |
|
Other accounts receivable, net |
|
| 367,524 |
|
|
| 393,254 |
|
Accounts receivable from sale of investments |
|
| 154,392 |
|
|
| 74,373 |
|
Assets for technical reserves for claims and premiums by reinsurers |
|
| 68,725 |
|
|
| 77,430 |
|
Operations in process |
|
| 44,990 |
|
|
| 45,613 |
|
Others |
|
| 37,931 |
|
|
| 39,760 |
|
|
|
| 1,196,747 |
|
|
| 851,206 |
|
Non-financial instruments |
|
|
|
|
|
|
|
|
Prepaid Income Tax |
|
| 235,992 |
|
|
| 25,270 |
|
Deferred charges |
|
| 73,219 |
|
|
| 63,377 |
|
Investments in associates |
|
| 64,421 |
|
|
| 72,301 |
|
Realizable assets, received as payment and seized through legal actions |
|
| 21,977 |
|
|
| 22,446 |
|
Prepaid rights to related entity |
|
| 7,194 |
|
|
| 6,628 |
|
Others |
|
| 2,010 |
|
|
| 10,644 |
|
|
|
| 404,813 |
|
|
| 200,666 |
|
Total |
|
| 1,601,560 |
|
|
| 1,051,872 |
|
Accounts payable, provisions and other liabilities |
|
|
|
|
|
|
|
|
Financial instruments |
|
|
|
|
|
|
|
|
Contract with investment component |
|
| 561,752 |
|
|
| 465,542 |
|
Other accounts payable |
|
| 456,039 |
|
|
| 436,331 |
|
Accounts payable related to derivative financial instruments (b) |
|
| 413,999 |
|
|
| 222,305 |
|
Lease liabilities |
|
| 281,572 |
|
|
| 341,836 |
|
Accounts payable for acquisitions of investments |
|
| 244,526 |
|
|
| 75,820 |
|
Operations in process |
|
| 175,819 |
|
|
| 132,982 |
|
Others |
|
| 141,366 |
|
|
| 181,732 |
|
|
|
| 2,275,073 |
|
|
| 1,856,548 |
|
Non-financial instruments |
|
|
|
|
|
|
|
|
Provision for other contingencies |
|
| 45,033 |
|
|
| 50,931 |
|
Taxes payable |
|
| 30,201 |
|
|
| 76,423 |
|
Others |
|
| 56,652 |
|
|
| 64,146 |
|
|
|
| 131,886 |
|
|
| 191,500 |
|
Total |
|
| 2,406,959 |
|
|
| 2,048,048 |
|
33
| (b) | The fair value of derivative financial instruments recorded as assets or liabilities, including their notional amounts as of September 30, 2020 and December 31, 2019 is presented below: |
As of September 30, 2020 |
| Assets |
|
| Liabilities |
|
| Notional amount |
|
| Effective part recognized in other comprehensive income during the year |
|
| Maturity |
| Hedged instruments |
|
| Caption of the interim 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 |
|
| 58,371 |
|
|
| 56,903 |
|
|
| 8,148,489 |
|
|
| — |
|
| Between October 2020 and September 2021 |
|
| — |
|
|
| — |
|
Interest rate swaps |
|
| 233,971 |
|
|
| 236,671 |
|
|
| 5,718,143 |
|
|
| — |
|
| Between November 2020 and June 2036 |
|
| — |
|
|
| — |
|
Currency swaps |
|
| 67,885 |
|
|
| 49,524 |
|
|
| 2,188,407 |
|
|
| — |
|
| Between October 2020 and February 2027 |
|
| — |
|
|
| — |
|
Cross currency swaps |
|
| — |
|
|
| 67,345 |
|
|
| 211,714 |
|
|
| — |
|
| January 2023 |
|
| — |
|
|
| — |
|
Options |
|
| — |
|
|
| 355 |
|
|
| 33,338 |
|
|
| — |
|
| Between October 2020 and March 2021 |
|
| — |
|
|
| — |
|
|
|
| 360,227 |
|
|
| 410,798 |
|
|
| 16,300,091 |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
Derivatives held as hedges Cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swaps (CCS) |
|
| 129,318 |
|
|
| — |
|
|
| 1,586,277 |
|
|
| (4,673 | ) |
| January 2023 |
| Corporate bonds |
|
| Bonds, notes and other obligations |
| ||
Cross currency swaps (CCS) |
|
| 33,640 |
|
|
| — |
|
|
| 539,550 |
|
|
| (893 | ) |
| October 2027 |
| Senior bonds |
|
| Bonds, notes and other obligations |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 1,542 |
|
|
| 143,880 |
|
|
| 786 |
|
| November 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 828 |
|
|
| 89,925 |
|
|
| 321 |
|
| December 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
Interest rate swaps (IRS) |
|
| — |
|
|
| 831 |
|
|
| 89,925 |
|
|
| 321 |
|
| December 2020 |
| Due to banks |
|
| Due to banks and correspondents |
| ||
|
|
| 162,958 |
|
|
| 3,201 |
|
|
| 2,449,557 |
|
|
| (4,138 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| 523,185 |
|
|
| 413,999 |
|
|
| 18,749,648 |
|
|
| (4,138 | ) |
|
|
|
|
|
|
|
|
|
|
34
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 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 September 30, 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. |
35
| (a) | This caption is made up as follows: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Saving deposits |
|
| 16,066,920 |
|
|
| 11,384,876 |
|
Demand deposits |
|
| 14,932,187 |
|
|
| 11,716,035 |
|
Time deposits |
|
| 12,464,861 |
|
|
| 13,053,033 |
|
Compensation for service time |
|
| 1,730,866 |
|
|
| 1,933,052 |
|
Other obligations |
|
| 14,030 |
|
|
| 6,228 |
|
Total |
|
| 45,208,864 |
|
|
| 38,093,224 |
|
| (b) | Interest rates applied to deposits and obligations are determined based on the market interest rates. |
| (c) | As of September 30, 2020 and December 31, 2019, approximately S/13,505,422,000 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: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
By type |
|
|
|
|
|
|
|
|
Banco Central de Reserva del Perú - BCRP (b) |
|
| 8,341,071 |
|
|
| 1,897,568 |
|
Promotional credit lines |
|
| 1,430,310 |
|
|
| 1,422,067 |
|
Loans received from foreign entities |
|
| 748,176 |
|
|
| 613,090 |
|
Loans received from Peruvian entities |
|
| 1,737 |
|
|
| 2,049 |
|
|
|
| 10,521,294 |
|
|
| 3,934,774 |
|
Interest and commissions payable |
|
| 33,704 |
|
|
| 44,863 |
|
|
|
| 10,554,998 |
|
|
| 3,979,637 |
|
By term |
|
|
|
|
|
|
|
|
Short term |
|
| 2,872,153 |
|
|
| 2,666,530 |
|
Long term |
|
| 7,682,845 |
|
|
| 1,313,107 |
|
Total |
|
| 10,554,998 |
|
|
| 3,979,637 |
|
| (b) | Interbank took part in the auction of funds for the “Reactiva Perú” program, Note 1(b). As of September 30, 2020, the amount recorded as debt to the BCRP amounts to approximately S/6,709 million. |
| (c) | As of September 30, 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 related to its due to banks and correspondents as of September 30, 2020 and December 31, 2019.
36
(a)This caption is comprised of the following:
Issuance |
| Issuer |
| Annual interest rate |
|
| Interest payment |
| Maturity |
|
| Amount issued |
| 30.09.2020 |
|
| 31.12.2019 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (000) |
| S/(000) |
|
| S/(000) |
| ||
Local issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated bonds – first program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third (A serie) |
| Interbank |
| 3.5% + VAC (*) |
|
| Semi-annually |
|
| 2023 |
|
| S/ 110,000 |
|
| 91,000 |
|
|
| 91,000 |
| |
Eighth (A serie) |
| Interbank |
| 6.91% |
|
| Semi-annually |
| 2022 |
|
| S/ 137,900 |
|
| 137,106 |
|
|
| 136,908 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 228,106 |
|
|
| 227,908 |
|
Subordinated bonds – second program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second (A serie) |
| Interbank |
| 5.81% |
|
| Semi-annually |
| 2023 |
|
| S/ 150,000 |
|
| 149,867 |
|
|
| 149,827 |
| ||
Third (A serie) |
| Interbank |
| 7.50% |
|
| Semi-annually |
| 2023 |
|
| US$50,000 |
|
| 179,603 |
|
|
| 165,426 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 329,470 |
|
|
| 315,253 |
|
Subordinated bonds – third program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First (single serie) |
| Interseguro |
| 6.00% |
|
| Semi-annually |
|
| 2029 |
|
| US$20,000 |
|
| 71,940 |
|
|
| 66,280 |
| |
Second (single serie) |
| Interseguro |
| 4.34% |
|
| Semi-annually |
|
| 2029 |
|
| US$20,000 |
|
| 71,940 |
|
|
| 66,280 |
| |
Third (single serie) |
| Interseguro |
| 4.84% |
|
| Semi-annually |
|
| 2030 |
|
| US$25,000 |
|
| 89,925 |
|
|
| — |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 233,805 |
|
|
| 132,560 |
|
Corporate bonds – second program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifth (A serie) |
| Interbank |
| 3.41% + VAC (*) |
|
| Semi-annually |
|
| 2029 |
|
| S/ 150,000 |
|
| 150,000 |
|
|
| 150,000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Negotiable certificates of deposits – first program |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First (A serie) |
| Interbank |
| 4.28% |
|
| Annually |
|
| 2020 |
|
| S/ 150,000 |
|
| — |
|
|
| 148,603 |
| |
Total local issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 941,381 |
|
|
| 974,324 |
|
International issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated bonds |
| Interbank |
| 6.625% |
|
| Semi-annually |
| 2029 |
|
| US$300,000 |
|
| 1,075,507 |
|
|
| 990,216 |
| ||
Junior subordinated notes |
| Interbank |
| 8.500% |
|
| Semi-annually |
| 2070 |
|
| US$200,000 |
|
| — |
|
|
| 660,992 |
| ||
Senior bonds |
| IFS |
| 4.125% |
|
| Semi-annually |
| 2027 |
|
| US$300,000 |
|
| 1,055,558 |
|
|
| 969,794 |
| ||
Corporate bonds |
| Interbank |
| 3.375% |
|
| Semi-annually |
| 2023 |
|
| US$484,895 |
|
| 1,698,353 |
|
|
| 1,549,877 |
| ||
Corporate bonds |
| Interbank |
| 5.000% |
|
| Semi-annually |
| 2026 |
|
| S/ 312,000 |
|
| 311,274 |
|
|
| 311,185 |
| ||
Corporate bonds |
| Interbank |
| 3.250% |
|
| Semi-annually |
| 2026 |
|
| US$400,000 |
|
| 1,426,820 |
|
|
| 1,313,259 |
| ||
Subordinated bonds (d) |
| Interbank |
| 4.000% |
|
| Semi-annually |
| 2030 |
|
| US$300,000 |
|
| 1,071,144 |
|
|
| — |
| ||
Total international issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,638,656 |
|
|
| 5,795,323 |
|
Total local and international issuances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,580,037 |
|
|
| 6,769,647 |
|
Interest payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 116,057 |
|
|
| 120,643 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,696,094 |
|
|
| 6,890,290 |
|
(*) | The Spanish term “Valor de actualización constante” is referred to amounts in Soles indexed by inflation. |
37
As of September 30, 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 September 30, 2020 and December 31, 2019. See detailed information in Note 13 of the Annual Consolidated Financial Statements.
| (c) | On September 30, 2020, Interseguro issued subordinated bonds denominated “Third Issuance of the Third Program of Subordinated Bonds Interseguro (Single Serie)” for the amount of US$25,000,000, recorded in Section “Transferable Securities and Issuance Programs” of the Public Registry of the Stock Market, under the Third Program of Subordinated Bonds of Interseguro. |
| (d) | During the month of June 2020, Interbank issued subordinated bonds called “4.00% Subordinated Notes due 2030” for an amount of US$300,000,000, under Rule 144A and Regulation S of the U.S. Securities Act of 1933 of the United States of America. |
11. | Insurance contract liabilities |
| (a) | This caption is comprised of the following: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Technical reserves for insurance premiums (b) |
|
| 11,577,661 |
|
|
| 11,135,635 |
|
Technical reserves for claims (c) |
|
| 215,593 |
|
|
| 203,175 |
|
|
|
| 11,793,254 |
|
|
| 11,338,810 |
|
By term |
|
|
|
|
|
|
|
|
Short term |
|
| 403,506 |
|
|
| 948,316 |
|
Long term |
|
| 11,389,748 |
|
|
| 10,390,494 |
|
Total |
|
| 11,793,254 |
|
|
| 11,338,810 |
|
38
| (b) | The movement of technical reserves for insurance premiums (disclosed by type of insurance) for the nine-month periods ended September 30, 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 |
|
| 150,647 |
|
|
| — |
|
|
| 1,597 |
|
|
| 31,885 |
|
|
| 184,129 |
|
|
| 228,127 |
|
|
| — |
|
|
| 3,116 |
|
|
| 36,729 |
|
|
| 267,972 |
|
Acquisition of Mapfre (*) |
|
| — |
|
|
| — |
|
|
| 292,499 |
|
|
| — |
|
|
| 292,499 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Interest rate effect |
|
| (142,974 | ) |
|
| (46,597 | ) |
|
| (15,296 | ) |
|
| — |
|
|
| (204,867 | ) |
|
| 951,093 |
|
|
| 85,463 |
|
|
| — |
|
|
| — |
|
|
| 1,036,556 |
|
Time passage adjustments |
|
| (145,662 | ) |
|
| (8,726 | ) |
|
| 68,425 |
|
|
| (32,069 | ) |
|
| (118,032 | ) |
|
| (100,292 | ) |
|
| (12,047 | ) |
|
| 95,917 |
|
|
| (34,644 | ) |
|
| (51,066 | ) |
Maturities and recoveries |
|
| — |
|
|
| — |
|
|
| (32,848 | ) |
|
| — |
|
|
| (32,848 | ) |
|
| — |
|
|
| — |
|
|
| (36,777 | ) |
|
| — |
|
|
| (36,777 | ) |
Exchange differences |
|
| 270,628 |
|
|
| — |
|
|
| 50,248 |
|
|
| 269 |
|
|
| 321,145 |
|
|
| 10,628 |
|
|
| — |
|
|
| 1,914 |
|
|
| 10 |
|
|
| 12,552 |
|
Balance as of September 30 |
|
| 9,786,059 |
|
|
| 724,132 |
|
|
| 1,026,312 |
|
|
| 41,158 |
|
|
| 11,577,661 |
|
|
| 9,755,450 |
|
|
| 788,633 |
|
|
| 650,336 |
|
|
| 41,778 |
|
|
| 11,236,197 |
|
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. The final value of the loan portfolio transfer resulted in a price adjustment in favor of Mapfre for a total amount of S/9,534,000, which were disbursed by Interseguro in cash. |
| (c) | In Management’s opinion, these balances reflect the exposure of life and general insurance contracts as of September 30, 2020 and December 31, 2019, in accordance with IFRS 4. |
39
| (d) | The main assumptions used in the estimation of retirement, disability and survival annuities and individual life reserves as of September 30, 2020 and December 31, 2019, are the following: |
|
|
|
| Interest rates | ||
Type |
| Mortality table |
| 30.09.2020 |
| 31.12.2019 |
Annuities |
| SPP-S-2017, SPP-I-2017
|
| 4.09% in US$ |
| 4.54% in US$ |
|
| with improvement factor for mortality |
| 2.33% in S/ VAC 5.50% 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 |
| 2.33% 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 September 30, 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:
|
| 30.09.2020 |
|
| 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 |
|
| 8,798,521 |
|
|
| (987,539 | ) |
|
| (10.09 | ) |
|
| 8,646,725 |
|
|
| (1,006,695 | ) |
|
| (10.43 | ) |
Changes in interest rate: - 100 bps |
|
| 10,991,452 |
|
|
| 1,205,392 |
|
|
| 12.32 |
|
|
| 10,890,170 |
|
|
| 1,236,750 |
|
|
| 12.81 |
|
Changes in mortality table at 105% |
|
| 9,684,014 |
|
|
| (102,046 | ) |
|
| (1.04 | ) |
|
| 9,554,268 |
|
|
| (99,152 | ) |
|
| (1.03 | ) |
Changes in mortality table at 95% |
|
| 9,893,151 |
|
|
| 107,091 |
|
|
| 1.09 |
|
|
| 9,757,493 |
|
|
| 104,073 |
|
|
| 1.08 |
|
Retirements, disability and survival |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio in S/ – Basis amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in interest rate: + 100 bps |
|
| 642,811 |
|
|
| (81,321 | ) |
|
| (11.23 | ) |
|
| 687,451 |
|
|
| (92,004 | ) |
|
| (11.80 | ) |
Changes in interest rate: - 100 bps |
|
| 824,987 |
|
|
| 100,856 |
|
|
| 13.93 |
|
|
| 894,614 |
|
|
| 115,159 |
|
|
| 14.77 |
|
Changes in mortality table at 105% |
|
| 714,733 |
|
|
| (9,398 | ) |
|
| (1.30 | ) |
|
| 769,044 |
|
|
| (10,411 | ) |
|
| (1.34 | ) |
Changes in mortality table at 95% |
|
| 734,004 |
|
|
| 9,873 |
|
|
| 1.36 |
|
|
| 790,403 |
|
|
| 10,948 |
|
|
| 1.40 |
|
40
| (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 September 30, 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 7, 2020, agreed to distribute dividends for the year 2019 for approximately US$202,033,000 (equivalent to approximately S/698,228,000), equivalent to US$1.75 per share, which were paid on May 6, 2020.
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), equivalent to US$1.75 per share, which were paid on May 3, 2019.
(b) Treasury stock -
As of September 30, 2020 and December 31, 2019, some subsidiaries hold 500 and 1,400 shares issued by IFS, respectively, with an acquisition cost equivalent to S/57,000 and S/196,000, respectively.
Sale of treasury stock (2019)
As indicated in Note 1(c), 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) Reserves -
The Board of Directors of IFS held on April 22, 2020, agreed to constitute reserves for S/500,000,000 charged to retained earnings.
| (e) | Shareholders’ equity for legal purposes (regulatory capital) - |
IFS is not required to establish a regulatory capital for statutory purposes. As of September 30, 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, in the case of Inteligo Bank).
In Management’s opinion, Interbank, Interseguro and Inteligo Bank have been fulfilling the current requirements established by their regulators.
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). |
41
| 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 September 30, 2020 and December 31, 2019, was 29.5 percent, over the taxable income. |
| (d) | The Tax Authority (henceforth “SUNAT”, by its Spanish acronym) is legally entitled to perform tax audit procedures for up to four years subsequent to the date at which the tax return regarding a taxable period must be filed. The Income 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 2018, and Value-Added-Tax returns for the years 2014 to 2018. |
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 rulings by the Permanent Constitutional and Social Law Chamber of the Supreme Court issued in August 2009 and a recent pronouncement in June 2019.
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. 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. Lastly, on July 6, 2020, the Permanent Chamber of Constitutional and Social Law of the Supreme Court has formally notified the aforementioned ruling.
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
42
resolution process; thus, it has not been recorded any provision for this contingency as of September 30, 2020 and December 31, 2019.
The tax liability requested for this concept and other minor contingencies as of September 30, 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/310,000,000, 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. Interbank 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; 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. The tax debt requested by SUNAT amounts to approximately S/50,000,000 (including taxes, penalties and moratorium interest). The main concept observed was the deduction of loan write-offs without proof by the SBS. As of September 30, 2020, the tax liability requested for this concept and other minor contingencies amounted to approximately S/41,000,000, out of which S/11,000,000 corresponded to taxes and the difference to fines and interest arrears (S/39,000,000 and S/11,000,000, respectively as of December 31, 2019).
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 September 30, 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.
On July 31, 2020, Interbank was notified of the Determination and Penalty Resolutions corresponding to the audit of the Income Tax for the fiscal year 2012. The tax debt requested by SUNAT amounts to approximately S/13,000,000. The main concept observed was the deduction of expenses for income from foreign sources.
As of September 30, 2020, the tax liability requested for this concept and other minor contingencies amounts to approximately S/13,000,000 referred to fines and interest arrears.
Lastly, to date, SUNAT is auditing Interbank’s 2014 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 September 30, 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
43
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 September 30, 2020 and December 31, 2019.
| (e) | IFS’s Subsidiaries recognize the period’s Income Tax expense using the best estimate of the tax rate. The table below presents the amounts reported in the interim consolidated statements of income: |
|
| For the nine-months period ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Current – Expense |
|
| 43,470 |
|
|
| 330,704 |
|
Deferred – (Income) expense |
|
| (192,500 | ) |
|
| 15,278 |
|
|
|
| (149,030 | ) |
|
| 345,982 |
|
14. | Interest income and expenses, and similar accounts |
| (a) | This caption is comprised of the following: |
|
| For the nine-months period ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Interest and similar income |
|
|
|
|
|
|
|
|
Interest on loan portfolio |
|
| 2,881,573 |
|
|
| 2,834,379 |
|
Interest on investments at fair value through other comprehensive income |
|
| 567,996 |
|
|
| 546,330 |
|
Interest on investments at amortized cost |
|
| 84,719 |
|
|
| 67,903 |
|
Dividends on financial instruments |
|
| 61,934 |
|
|
| 54,298 |
|
Interest on due from banks and inter-bank funds |
|
| 29,217 |
|
|
| 92,635 |
|
Other interest and similar income |
|
| 3,469 |
|
|
| 1,803 |
|
Subtotal |
|
| 3,628,908 |
|
|
| 3,597,348 |
|
|
|
|
|
|
|
|
|
|
One-off impact from the modification of contractual cash flows due to the loan rescheduling schemes (*) |
|
| (151,143 | ) |
|
| — |
|
|
|
|
|
|
|
|
|
|
Interest and similar income, net |
|
| 3,477,765 |
|
|
| 3,597,348 |
|
|
|
|
|
|
|
|
|
|
Interest and similar expenses |
|
|
|
|
|
|
|
|
Interest and fees on deposits and obligations |
|
| (426,247 | ) |
|
| (527,476 | ) |
Interest on bonds, notes and other obligations |
|
| (282,460 | ) |
|
| (304,169 | ) |
Interest and fees on obligations with financial institutions |
|
| (138,890 | ) |
|
| (135,771 | ) |
Deposit insurance fund fees |
|
| (40,739 | ) |
|
| (33,465 | ) |
Interest on lease payments |
|
| (12,069 | ) |
|
| (5,843 | ) |
Result from hedging transactions |
|
| (6,937 | ) |
|
| (6,912 | ) |
Other interest and similar expenses |
|
| (22,789 | ) |
|
| (23,693 | ) |
Total |
|
| (930,131 | ) |
|
| (1,037,329 | ) |
| (b) | Corresponds to lower income generated by the modification of contractual cash flows due to customer loans rescheduling, see Note 2.3.1. |
44
| (a) | This caption is comprised of the following: |
|
| For the nine-months period ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Income |
|
|
|
|
|
|
|
|
Accounts maintenance, carriage, transfers, and debit and credit card fees |
|
| 349,888 |
|
|
| 481,651 |
|
Banking services fees |
|
| 140,236 |
|
|
| 156,723 |
|
Funds management |
|
| 112,986 |
|
|
| 104,293 |
|
Contingent loans fees |
|
| 37,699 |
|
|
| 42,757 |
|
Collection services |
|
| 29,666 |
|
|
| 30,495 |
|
Brokerage and custody services |
|
| 5,401 |
|
|
| 7,176 |
|
Others |
|
| 31,377 |
|
|
| 29,086 |
|
Total |
|
| 707,253 |
|
|
| 852,181 |
|
Expenses |
|
|
|
|
|
|
|
|
Credit cards |
|
| (80,422 | ) |
|
| (87,750 | ) |
Debtor’s life insurance premiums |
|
| (43,102 | ) |
|
| (37,273 | ) |
Foreign banks fees |
|
| (10,223 | ) |
|
| (12,748 | ) |
Brokerage and custody services |
|
| (469 | ) |
|
| (467 | ) |
Others |
|
| (35,481 | ) |
|
| (38,395 | ) |
Total |
|
| (169,697 | ) |
|
| (176,633 | ) |
Net |
|
| 537,556 |
|
|
| 675,548 |
|
16. | Other income and (expenses) |
| (a) | This caption is comprised of the following: |
|
| For the nine-months period ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Other income |
|
|
|
|
|
|
|
|
Other technical income from insurance operations |
|
| 8,582 |
|
|
| 9,766 |
|
Services rendered to third parties |
|
| 5,590 |
|
|
| 2,645 |
|
Income from ATM rentals |
|
| 2,896 |
|
|
| 3,218 |
|
Income from investments in associates |
|
| 2,785 |
|
|
| 14,092 |
|
Other income |
|
| 16,304 |
|
|
| 17,977 |
|
Total other income |
|
| 36,157 |
|
|
| 47,698 |
|
Other expenses |
|
|
|
|
|
|
|
|
Commissions from insurance activities |
|
| (25,832 | ) |
|
| (25,955 | ) |
Sundry technical insurance expenses |
|
| (16,370 | ) |
|
| (31,519 | ) |
Donations |
|
| (4,256 | ) |
|
| (3,868 | ) |
Provision for sundry risk |
|
| (3,287 | ) |
|
| (2,935 | ) |
Expenses related to rental income |
|
| (926 | ) |
|
| (2,348 | ) |
Other expenses |
|
| (37,921 | ) |
|
| (30,353 | ) |
Total other expenses |
|
| (88,592 | ) |
|
| (96,978 | ) |
45
(a) The caption of net premiums earned is comprised of the following:
|
| Premiums assumed (1) |
|
| Adjustment of technical reserves (2) |
|
| Gross premiums (*) (3) = (1) - (2) |
|
| Premiums ceded to reinsurers (4) |
|
| Net premiums earned (5) = (3) - (4) |
| |||||||||||||||||||||||||
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||||||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||||||
Life insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuities |
|
| 148,933 |
|
|
| 214,137 |
|
|
| (4,984 | ) |
|
| (41,756 | ) |
|
| 143,949 |
|
|
| 172,381 |
|
|
| — |
|
|
| — |
|
|
| 143,949 |
|
|
| 172,381 |
|
Group life |
|
| 105,729 |
|
|
| 100,696 |
|
|
| 265 |
|
|
| (417 | ) |
|
| 105,994 |
|
|
| 100,279 |
|
|
| (3,595 | ) |
|
| (3,901 | ) |
|
| 102,399 |
|
|
| 96,378 |
|
Individual life |
|
| 100,349 |
|
|
| 100,436 |
|
|
| (38,582 | ) |
|
| (58,843 | ) |
|
| 61,767 |
|
|
| 41,593 |
|
|
| (3,372 | ) |
|
| (3,319 | ) |
|
| 58,395 |
|
|
| 38,274 |
|
Retirement, disability and survival |
|
| 6,063 |
|
|
| 10,476 |
|
|
| 8,726 |
|
|
| (74,031 | ) |
|
| 14,789 |
|
|
| (63,555 | ) |
|
| (391 | ) |
|
| (2,812 | ) |
|
| 14,398 |
|
|
| (66,367 | ) |
Others |
|
| 1 |
|
|
| 2 |
|
|
| 1,148 |
|
|
| (2,994 | ) |
|
| 1,149 |
|
|
| (2,992 | ) |
|
| — |
|
|
| — |
|
|
| 1,149 |
|
|
| (2,992 | ) |
Total life insurance |
|
| 361,075 |
|
|
| 425,747 |
|
|
| (33,427 | ) |
|
| (178,041 | ) |
|
| 327,648 |
|
|
| 247,706 |
|
|
| (7,358 | ) |
|
| (10,032 | ) |
|
| 320,290 |
|
|
| 237,674 |
|
Total general insurance |
|
| 67,594 |
|
|
| 77,512 |
|
|
| (171 | ) |
|
| (2,690 | ) |
|
| 67,423 |
|
|
| 74,822 |
|
|
| (130 | ) |
|
| (156 | ) |
|
| 67,293 |
|
|
| 74,666 |
|
Total |
|
| 428,669 |
|
|
| 503,259 |
|
|
| (33,598 | ) |
|
| (180,731 | ) |
|
| 395,071 |
|
|
| 322,528 |
|
|
| (7,488 | ) |
|
| (10,188 | ) |
|
| 387,583 |
|
|
| 312,340 |
|
(*) | It includes the annual variation of technical reserves and unearned premiums. |
| (b) | The caption of net claims and benefits incurred for life insurance contracts and others is comprised of the following: |
|
| Gross claims and benefits |
|
| Ceded claims and benefits |
|
| Net insurance claims and benefits |
| |||||||||||||||
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 30.09.2020 |
|
| 30.09.2019 |
|
| 30.09.2020 |
|
| 30.09.2019 |
| ||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||
Life insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuities |
|
| (460,180 | ) |
|
| (439,608 | ) |
|
| — |
|
|
| — |
|
|
| (460,180 | ) |
|
| (439,608 | ) |
Group life |
|
| (59,280 | ) |
|
| (38,506 | ) |
|
| 7,186 |
|
|
| 3,294 |
|
|
| (52,094 | ) |
|
| (35,212 | ) |
Individual life |
|
| (12,576 | ) |
|
| (6,409 | ) |
|
| 1,374 |
|
|
| 2,962 |
|
|
| (11,202 | ) |
|
| (3,447 | ) |
Retirement, disability and survival |
|
| (31,324 | ) |
|
| (15,410 | ) |
|
| 4,625 |
|
|
| (4,869 | ) |
|
| (26,699 | ) |
|
| (20,279 | ) |
Others |
|
| (9,246 | ) |
|
| (1,621 | ) |
|
| (304 | ) |
|
| 244 |
|
|
| (9,550 | ) |
|
| (1,377 | ) |
General insurance |
|
| (12,906 | ) |
|
| (14,067 | ) |
|
| (4 | ) |
|
| (216 | ) |
|
| (12,910 | ) |
|
| (14,283 | ) |
|
|
| (585,512 | ) |
|
| (515,621 | ) |
|
| 12,877 |
|
|
| 1,415 |
|
|
| (572,635 | ) |
|
| (514,206 | ) |
18. | Earnings per share |
The following table presents the calculation of the weighted average number of shares and the basic and diluted (loss) earnings per share, determined and calculated based on the (loss) earnings attributable to the Group:
|
| Outstanding shares |
|
| Shares considered in computation |
|
| Effective days in the period |
|
| Weighted average number of outstanding shares |
| ||||
|
| (in thousands) |
|
| (in thousands) |
|
|
|
|
|
| (in thousands) |
| |||
Period 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2019 |
|
| 110,692 |
|
|
| 110,692 |
|
|
| 270 |
|
|
| 110,692 |
|
Sale of treasury stock, see Note 1(c) |
|
| 4,755 |
|
|
| 4,755 |
|
|
| 69 |
|
|
| 1,215 |
|
Balance as of September 30, 2019 |
|
| 115,447 |
|
|
| 115,447 |
|
|
|
|
|
|
| 111,907 |
|
Net profit for the period S/(000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1,030,914 |
|
Basic and diluted earnings per share (Soles) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 9.212 |
|
Period 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2020 |
|
| 115,446 |
|
|
| 115,446 |
|
|
| 270 |
|
|
| 115,446 |
|
Sale of treasury stock |
|
| 4 |
|
|
| 4 |
|
|
| 129 |
|
|
| 2 |
|
Purchase of treasury stock |
|
| (3 | ) |
|
| (3 | ) |
|
| 149 |
|
|
| (1 | ) |
Balance as of September 30, 2020 |
|
| 115,447 |
|
|
| 115,447 |
|
|
|
|
|
|
| 115,447 |
|
Net profit for the period S/(000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7,258 |
|
Basic and diluted earnings per share (Soles) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0.063 |
|
46
19. | Transactions with shareholders, related parties and affiliated entities |
| (a) | The table below presents the main transactions with shareholders, related parties and affiliated entities as of September 30, 2020 and December 31, 2019: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Assets |
|
|
|
|
|
|
|
|
Investments at fair value through profit or loss |
|
|
|
|
|
|
|
|
Participations - Royalty Pharma |
|
| 111,900 |
|
|
| 117,682 |
|
Others |
|
| 102 |
|
|
| 270 |
|
Negotiable certificates of deposit – Financiera Oh! S.A. |
|
| — |
|
|
| 9,372 |
|
|
|
| 112,002 |
|
|
| 127,324 |
|
Investments at fair value through other comprehensive income |
|
|
|
|
|
|
|
|
Shares - InRetail Perú Corp. |
|
| 292,645 |
|
|
| 285,962 |
|
Corporate bonds - InRetail Shopping Malls S.A. |
|
| 49,315 |
|
|
| 49,728 |
|
Corporate bonds - Colegios Peruanos S.A. |
|
| 1,273 |
|
|
| 30,977 |
|
|
|
| 343,233 |
|
|
| 366,667 |
|
Loans, net (b) |
|
| 1,170,032 |
|
|
| 1,114,211 |
|
Accounts receivable (h) |
|
| 79,127 |
|
|
| 77,824 |
|
Long-term accounts receivable (g) |
|
| 39,540 |
|
|
| 39,141 |
|
Accounts receivable related to derivative financial instruments |
|
| 4,040 |
|
|
| 817 |
|
Other assets (f) |
|
| 13,994 |
|
|
| 11,928 |
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 806,354 |
|
|
| 944,561 |
|
Other liabilities |
|
| 164 |
|
|
| 56 |
|
Accounts payable related to derivative financial instruments |
|
| — |
|
|
| 344 |
|
Off-balance sheet accounts |
|
|
|
|
|
|
|
|
Indirect loans (b) |
|
| 103,916 |
|
|
| 134,658 |
|
|
|
|
|
|
|
|
|
|
|
| For the nine-months period ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Income (expenses) |
|
|
|
|
|
|
|
|
Interest and similar income |
|
| 52,829 |
|
|
| 60,185 |
|
Interest and similar expenses |
|
| (7,033 | ) |
|
| (13,667 | ) |
Valuation of financial derivative instruments |
|
| 3,566 |
|
|
| — |
|
Rental income |
|
| 13,828 |
|
|
| 18,295 |
|
Loss on sale of investment property |
|
| — |
|
|
| (5,936 | ) |
Administrative expenses |
|
| (33,784 | ) |
|
| (30,802 | ) |
Others, net |
|
| 7,843 |
|
|
| 6,173 |
|
| (b) | As of September 30, 2020 and December 31, 2019, the detail of loans is the following: |
|
|
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||||||||||||||||||
|
| Direct |
|
| Indirect |
|
| Total |
|
| Direct |
|
| Indirect |
|
| Total |
| ||||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||||
Controlling |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 17 |
|
|
| — |
|
|
| 17 |
|
Affiliated |
|
| 906,110 |
|
|
| 44,933 |
|
|
| 951,043 |
|
|
| 847,993 |
|
|
| 59,267 |
|
|
| 907,260 |
|
Associates |
|
| 263,922 |
|
|
| 58,983 |
|
|
| 322,905 |
|
|
| 266,201 |
|
|
| 75,391 |
|
|
| 341,592 |
|
|
|
| 1,170,032 |
|
|
| 103,916 |
|
|
| 1,273,948 |
|
|
| 1,114,211 |
|
|
| 134,658 |
|
|
| 1,248,869 |
|
47
| (c) | As of September 30, 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 September 30, 2020 and December 31, 2019, direct loans to employees, directors and officers amounted to S/212,389,000 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 nine-months period ended September 30, 2020 and 2019, are presented below: |
|
| For the nine-months period ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Salaries |
|
| 17,268 |
|
|
| 17,691 |
|
Board of Directors’ compensations |
|
| 2,975 |
|
|
| 1,531 |
|
Total |
|
| 20,243 |
|
|
| 19,222 |
|
| (e) | As of September 30, 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 approximately to S/471,000 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/7,194,000 and S/6,628,000 as of September 30, 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 September 30, 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 interim 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 September 30, 2020 and 2019.
48
The following table presents the Group’s financial information by business segments for the nine-months period ended September 30, 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 |
|
| 3,665,387 |
|
|
| 1,006,150 |
|
|
| 235,453 |
|
|
| (9,606 | ) |
|
| 4,897,384 |
|
|
| 3,956,643 |
|
|
| 884,529 |
|
|
| 272,758 |
|
|
| (118,495 | ) |
|
| 4,995,435 |
|
Inter-segment |
|
| (42,600 | ) |
|
| — |
|
|
| (2,216 | ) |
|
| 44,816 |
|
|
| — |
|
|
| (62,878 | ) |
|
| — |
|
|
| (1,420 | ) |
|
| 64,298 |
|
|
| — |
|
Total income |
|
| 3,622,787 |
|
|
| 1,006,150 |
|
|
| 233,237 |
|
|
| 35,210 |
|
|
| 4,897,384 |
|
|
| 3,893,765 |
|
|
| 884,529 |
|
|
| 271,338 |
|
|
| (54,197 | ) |
|
| 4,995,435 |
|
Consolidated income statement data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and similar income |
|
| 3,028,352 |
|
|
| 479,005 |
|
|
| 112,280 |
|
|
| 9,271 |
|
|
| 3,628,908 |
|
|
| 3,022,293 |
|
|
| 456,941 |
|
|
| 126,999 |
|
|
| (8,885 | ) |
|
| 3,597,348 |
|
One-off impact from the modification of contractual cash flows due to the loan rescheduling schemes |
|
| (151,143 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (151,143 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Interest and similar expenses |
|
| (821,469 | ) |
|
| (65,606 | ) |
|
| (40,899 | ) |
|
| (2,157 | ) |
|
| (930,131 | ) |
|
| (936,848 | ) |
|
| (54,984 | ) |
|
| (45,201 | ) |
|
| (296 | ) |
|
| (1,037,329 | ) |
Net interest and similar income |
|
| 2,055,740 |
|
|
| 413,399 |
|
|
| 71,381 |
|
|
| 7,114 |
|
|
| 2,547,634 |
|
|
| 2,085,445 |
|
|
| 401,957 |
|
|
| 81,798 |
|
|
| (9,181 | ) |
|
| 2,560,019 |
|
Impairment loss on loans, net of recoveries |
|
| (2,066,356 | ) |
|
| — |
|
|
| (69 | ) |
|
| — |
|
|
| (2,066,425 | ) |
|
| (602,908 | ) |
|
| — |
|
|
| (49 | ) |
|
| — |
|
|
| (602,957 | ) |
(Loss) recovery due to impairment on financial investments |
|
| (165 | ) |
|
| (47,715 | ) |
|
| (7,315 | ) |
|
| — |
|
|
| (55,195 | ) |
|
| 42 |
|
|
| 2,133 |
|
|
| (646 | ) |
|
| — |
|
|
| 1,529 |
|
Net interest and similar income after impairment loss |
|
| (10,781 | ) |
|
| 365,684 |
|
|
| 63,997 |
|
|
| 7,114 |
|
|
| 426,014 |
|
|
| 1,482,579 |
|
|
| 404,090 |
|
|
| 81,103 |
|
|
| (9,181 | ) |
|
| 1,958,591 |
|
Fee income from financial services, net |
|
| 456,511 |
|
|
| (3,826 | ) |
|
| 123,513 |
|
|
| (38,642 | ) |
|
| 537,556 |
|
|
| 607,346 |
|
|
| (3,148 | ) |
|
| 117,314 |
|
|
| (45,964 | ) |
|
| 675,548 |
|
Net gain on sale of financial investments |
|
| 96,087 |
|
|
| 83,887 |
|
|
| (46,769 | ) |
|
| — |
|
|
| 133,205 |
|
|
| 28,739 |
|
|
| 25,767 |
|
|
| 42,317 |
|
|
| — |
|
|
| 96,823 |
|
Gain from derecognition of financial assets at amortized cost |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 8,474 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 8,474 |
|
Other income (**) |
|
| 235,580 |
|
|
| 59,501 |
|
|
| 46,429 |
|
|
| 19,765 |
|
|
| 361,275 |
|
|
| 289,791 |
|
|
| 92,618 |
|
|
| (13,872 | ) |
|
| (63,646 | ) |
|
| 304,891 |
|
Total net premiums earned minus claims and benefits |
|
| — |
|
|
| (185,052 | ) |
|
| — |
|
|
| — |
|
|
| (185,052 | ) |
|
| — |
|
|
| (201,855 | ) |
|
| — |
|
|
| (11 | ) |
|
| (201,866 | ) |
Depreciation and amortization |
|
| (170,096 | ) |
|
| (19,182 | ) |
|
| (10,901 | ) |
|
| 4,344 |
|
|
| (195,835 | ) |
|
| (168,727 | ) |
|
| (16,677 | ) |
|
| (13,721 | ) |
|
| 306 |
|
|
| (198,819 | ) |
Other expenses |
|
| (949,308 | ) |
|
| (172,835 | ) |
|
| (77,921 | ) |
|
| 22,053 |
|
|
| (1,178,011 | ) |
|
| (1,029,650 | ) |
|
| (203,179 | ) |
|
| (76,440 | ) |
|
| 43,707 |
|
|
| (1,265,562 | ) |
(Loss) income before translation result and Income Tax |
|
| (342,007 | ) |
|
| 128,177 |
|
|
| 98,348 |
|
|
| 14,634 |
|
|
| (100,848 | ) |
|
| 1,218,552 |
|
|
| 97,616 |
|
|
| 136,701 |
|
|
| (74,789 | ) |
|
| 1,378,080 |
|
Translation result |
|
| (4,798 | ) |
|
| (24,731 | ) |
|
| (5,795 | ) |
|
| (6,746 | ) |
|
| (42,070 | ) |
|
| (2,272 | ) |
|
| (1,888 | ) |
|
| (912 | ) |
|
| 10,316 |
|
|
| 5,244 |
|
Income Tax |
|
| 147,299 |
|
|
| — |
|
|
| (4,088 | ) |
|
| 5,819 |
|
|
| 149,030 |
|
|
| (325,209 | ) |
|
| — |
|
|
| (5,159 | ) |
|
| (15,614 | ) |
|
| (345,982 | ) |
Net profit for the period |
|
| (199,506 | ) |
|
| 103,446 |
|
|
| 88,465 |
|
|
| 13,707 |
|
|
| 6,112 |
|
|
| 891,071 |
|
|
| 95,728 |
|
|
| 130,630 |
|
|
| (80,087 | ) |
|
| 1,037,342 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFS’s shareholders |
|
| (199,506 | ) |
|
| 103,446 |
|
|
| 88,465 |
|
|
| 14,853 |
|
|
| 7,258 |
|
|
| 891,071 |
|
|
| 95,728 |
|
|
| 130,630 |
|
|
| (86,515 | ) |
|
| 1,030,914 |
|
Non-controlling interests |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,146 | ) |
|
| (1,146 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,428 |
|
|
| 6,428 |
|
|
|
| (199,506 | ) |
|
| 103,446 |
|
|
| 88,465 |
|
|
| 13,707 |
|
|
| 6,112 |
|
|
| 891,071 |
|
|
| 95,728 |
|
|
| 130,630 |
|
|
| (80,087 | ) |
|
| 1,037,342 |
|
(*) | Corresponds to interest and similar income, other income and net premiums earned. |
(**) | For the Banking Segment, the caption “Other income” for the nine-months period ended September 30, 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. |
49
|
| 30.09.2020 |
| |||||||||||||||||
|
| Banking |
|
| Insurance |
|
| Wealth management |
|
| Holding and consolidation adjustments |
|
| Total consolidated |
| |||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| |||||
Capital expenditures (*) |
|
| 136,026 |
|
|
| 104,038 |
|
|
| 4,668 |
|
|
| — |
|
|
| 244,732 |
|
Total assets |
|
| 66,618,530 |
|
|
| 14,636,151 |
|
|
| 4,410,336 |
|
|
| 347,408 |
|
|
| 86,012,425 |
|
Total liabilities |
|
| 60,702,596 |
|
|
| 13,813,032 |
|
|
| 3,516,419 |
|
|
| (354,827 | ) |
|
| 77,677,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 nine-months period ended September 30, 2020, is S/4,706,972,000 in Peru and S/190,412,000 in Panama (for the nine-months period ended September 30, 2019, is S/4,769,869,000 in Peru and S/225,566,000 in Panama). The distribution of the Group’s total assets based on the location of the customer and its assets, as of September 30, 2020 is S/81,766,300,000 in Peru and S/4,246,125,000 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). |
50
The financial assets and liabilities of the interim consolidated statement of financial position as of September 30, 2020 and December 31, 2019, are presented below:
|
| As of September 30, 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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 17,573,070 |
|
|
| 17,573,070 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,128,875 |
|
|
| 11,128,875 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 85,006 |
|
|
| 85,006 |
|
Financial investments |
|
| 1,747,541 |
|
|
| 17,094,635 |
|
|
| 1,271,326 |
|
|
| 2,674,377 |
|
|
| 22,787,879 |
|
|
| 1,551,537 |
|
|
| 14,188,473 |
|
|
| 1,125,722 |
|
|
| 2,206,986 |
|
|
| 19,072,718 |
|
Loans, net |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 40,846,479 |
|
|
| 40,846,479 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 37,136,853 |
|
|
| 37,136,853 |
|
Due from customers on acceptances |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 15,693 |
|
|
| 15,693 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 139,685 |
|
|
| 139,685 |
|
Others accounts receivable and other assets, net |
|
| 523,185 |
|
|
| — |
|
|
| — |
|
|
| 673,562 |
|
|
| 1,196,747 |
|
|
| 220,776 |
|
|
| — |
|
|
| — |
|
|
| 630,430 |
|
|
| 851,206 |
|
|
|
| 2,270,726 |
|
|
| 17,094,635 |
|
|
| 1,271,326 |
|
|
| 61,783,181 |
|
|
| 82,419,868 |
|
|
| 1,772,313 |
|
|
| 14,188,473 |
|
|
| 1,125,722 |
|
|
| 51,327,835 |
|
|
| 68,414,343 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 45,208,864 |
|
|
| 45,208,864 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 38,093,224 |
|
|
| 38,093,224 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 169,138 |
|
|
| 169,138 |
|
Due to banks and correspondents |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 10,554,998 |
|
|
| 10,554,998 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3,979,637 |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 7,696,094 |
|
|
| 7,696,094 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,890,290 |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 15,693 |
|
|
| 15,693 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 139,685 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,793,254 |
|
|
| 11,793,254 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,338,810 |
|
|
| 11,338,810 |
|
Others accounts payable, provisions and other liabilities |
|
| 413,999 |
|
|
| — |
|
|
| — |
|
|
| 1,861,074 |
|
|
| 2,275,073 |
|
|
| 222,305 |
|
|
| — |
|
|
| — |
|
|
| 1,634,243 |
|
|
| 1,856,548 |
|
|
|
| 413,999 |
|
|
| — |
|
|
| — |
|
|
| 77,129,977 |
|
|
| 77,543,976 |
|
|
| 222,305 |
|
|
| — |
|
|
| — |
|
|
| 62,245,027 |
|
|
| 62,467,332 |
|
51
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 September 30, 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 interim 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 interim 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 September 30, 2020 and December 31, 2019, is presented below: |
52
|
|
|
|
|
|
|
|
|
|
|
|
|
| Related amounts not offset in the interim consolidated statement of financial position |
|
|
|
|
| |||||
|
| Gross amounts of recognized financial assets |
|
| Gross amounts of recognized financial liabilities and offset in the interim consolidated statement of financial position |
|
| Net amounts of financial assets presented in the interim 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 September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 523,185 |
|
|
| — |
|
|
| 523,185 |
|
|
| (297,219 | ) |
|
| (54,002 | ) |
|
| 171,964 |
|
|
|
| 523,185 |
|
|
| — |
|
|
| 523,185 |
|
|
| (297,219 | ) |
|
| (54,002 | ) |
|
| 171,964 |
|
As of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 220,776 |
|
|
| — |
|
|
| 220,776 |
|
|
| (134,103 | ) |
|
| (42,351 | ) |
|
| 44,322 |
|
|
|
| 220,776 |
|
|
| — |
|
|
| 220,776 |
|
|
| (134,103 | ) |
|
| (42,351 | ) |
|
| 44,322 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 413,999 |
|
|
| — |
|
|
| 413,999 |
|
|
| (297,219 | ) |
|
| (92,608 | ) |
|
| 24,172 |
|
|
|
| 413,999 |
|
|
| — |
|
|
| 413,999 |
|
|
| (297,219 | ) |
|
| (92,608 | ) |
|
| 24,172 |
|
As of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives, Note 7(b) |
|
| 222,305 |
|
|
| — |
|
|
| 222,305 |
|
|
| (134,103 | ) |
|
| (57,816 | ) |
|
| 30,386 |
|
|
|
| 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 September 30, 2020, the weighted average exchange rate of free market published by the SBS for transactions in US Dollars was S/3.595 per US$1 bid and S/3.599 per US$1 ask (S/3.311 and S/3.317 as of December 31, 2019, respectively). As of September 30, 2020, the exchange rate for the accounting of asset and liability accounts in foreign currency set by the SBS was S/3.597 per US$1 (S/3.314 as of December 31, 2019).
53
The table below presents the detail of the Group’s position:
|
| As of September 30, 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 |
|
| 9,356,804 |
|
|
| 7,690,500 |
|
|
| 525,766 |
|
|
| 17,573,070 |
|
|
| 9,386,504 |
|
|
| 1,311,291 |
|
|
| 431,080 |
|
|
| 11,128,875 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 85,006 |
|
|
| — |
|
|
| 85,006 |
|
Financial investments |
|
| 8,435,377 |
|
|
| 14,320,378 |
|
|
| 32,124 |
|
|
| 22,787,879 |
|
|
| 6,948,954 |
|
|
| 12,111,165 |
|
|
| 12,599 |
|
|
| 19,072,718 |
|
Loans, net |
|
| 10,066,687 |
|
|
| 30,779,792 |
|
|
| — |
|
|
| 40,846,479 |
|
|
| 10,919,233 |
|
|
| 26,217,620 |
|
|
| — |
|
|
| 37,136,853 |
|
Due from customers on acceptances |
|
| 15,693 |
|
|
| — |
|
|
| — |
|
|
| 15,693 |
|
|
| 128,397 |
|
|
| — |
|
|
| 11,288 |
|
|
| 139,685 |
|
Other accounts receivable and other assets, net |
|
| 456,129 |
|
|
| 738,971 |
|
|
| 1,647 |
|
|
| 1,196,747 |
|
|
| 245,402 |
|
|
| 604,456 |
|
|
| 1,348 |
|
|
| 851,206 |
|
|
|
| 28,330,690 |
|
|
| 53,529,641 |
|
|
| 559,537 |
|
|
| 82,419,868 |
|
|
| 27,628,490 |
|
|
| 40,329,538 |
|
|
| 456,315 |
|
|
| 68,414,343 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 16,012,345 |
|
|
| 28,810,852 |
|
|
| 385,667 |
|
|
| 45,208,864 |
|
|
| 13,840,447 |
|
|
| 23,888,049 |
|
|
| 364,728 |
|
|
| 38,093,224 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 149,137 |
|
|
| 20,001 |
|
|
| — |
|
|
| 169,138 |
|
Due to banks and correspondents |
|
| 969,866 |
|
|
| 9,585,132 |
|
|
| — |
|
|
| 10,554,998 |
|
|
| 830,122 |
|
|
| 3,149,515 |
|
|
| — |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| 6,813,725 |
|
|
| 882,369 |
|
|
| — |
|
|
| 7,696,094 |
|
|
| 5,857,206 |
|
|
| 1,033,084 |
|
|
| — |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
| 15,693 |
|
|
| — |
|
|
| — |
|
|
| 15,693 |
|
|
| 128,397 |
|
|
| — |
|
|
| 11,288 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| 4,643,337 |
|
|
| 7,149,917 |
|
|
| — |
|
|
| 11,793,254 |
|
|
| 4,234,217 |
|
|
| 7,104,593 |
|
|
| — |
|
|
| 11,338,810 |
|
Other accounts payable, provisions and other liabilities |
|
| 788,588 |
|
|
| 1,481,081 |
|
|
| 5,404 |
|
|
| 2,275,073 |
|
|
| 414,604 |
|
|
| 1,441,612 |
|
|
| 332 |
|
|
| 1,856,548 |
|
|
|
| 29,243,554 |
|
|
| 47,909,351 |
|
|
| 391,071 |
|
|
| 77,543,976 |
|
|
| 25,454,130 |
|
|
| 36,636,854 |
|
|
| 376,348 |
|
|
| 62,467,332 |
|
Forwards position, net |
|
| (253,130 | ) |
|
| 355,666 |
|
|
| (102,536 | ) |
|
| — |
|
|
| (2,718,082 | ) |
|
| 2,776,866 |
|
|
| (58,784 | ) |
|
| — |
|
Currency swaps position, net |
|
| 110,153 |
|
|
| (110,153 | ) |
|
| — |
|
|
| — |
|
|
| 138,676 |
|
|
| (138,676 | ) |
|
| — |
|
|
| — |
|
Cross currency swaps position, net |
|
| 1,914,114 |
|
|
| (1,914,114 | ) |
|
| — |
|
|
| — |
|
|
| 1,763,518 |
|
|
| (1,763,518 | ) |
|
| — |
|
|
| — |
|
Options position, net |
|
| 49 |
|
|
| (49 | ) |
|
| — |
|
|
| — |
|
|
| (37 | ) |
|
| 37 |
|
|
| — |
|
|
| — |
|
Monetary position, net |
|
| 858,322 |
|
|
| 3,951,640 |
|
|
| 65,930 |
|
|
| 4,875,892 |
|
|
| 1,358,435 |
|
|
| 4,567,393 |
|
|
| 21,183 |
|
|
| 5,947,011 |
|
As of September 30, 2020, the Group granted indirect loans (contingent operations) in foreign currency for approximately US$658,017,000, equivalent to S/2,366,887,000 (US$683,214,000, equivalent to S/2,264,171,000 as of December 31, 2019).
23. | Fair value |
| (a) | Financial instruments measured at their fair value. The following table presents an analysis of the financial instruments that are measured at their fair value. The amounts are based on the balances presented in the interim consolidated statement of financial position: |
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Financial assets |
|
|
|
|
|
|
|
|
Financial investments |
|
|
|
|
|
|
|
|
At fair value through profit or loss (*) |
|
| 1,747,541 |
|
|
| 1,551,537 |
|
Debt instruments measured at fair value through other comprehensive income |
|
| 16,916,212 |
|
|
| 14,010,029 |
|
Equity instruments measured at fair value through other comprehensive income |
|
| 1,271,326 |
|
|
| 1,125,722 |
|
Derivatives receivable |
|
| 523,185 |
|
|
| 220,776 |
|
|
|
| 20,458,264 |
|
|
| 16,908,064 |
|
Accrued interest |
|
| 178,423 |
|
|
| 178,444 |
|
Total financial assets |
|
| 20,636,687 |
|
|
| 17,086,508 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
Derivatives payable |
|
| 413,999 |
|
|
| 222,305 |
|
(*) | As of September 30, 2020, and December 31, 2019, correspond mainly to participations in mutual funds and investment funds. |
54
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:
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||||||||||
|
| Fair value |
|
| Book value |
|
| Fair value |
|
| Book value |
| ||||
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
|
| S/(000) |
| ||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
| 17,573,070 |
|
|
| 17,573,070 |
|
|
| 11,128,875 |
|
|
| 11,128,875 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| 85,006 |
|
|
| 85,006 |
|
Investments at amortized cost |
|
| 2,892,989 |
|
|
| 2,674,377 |
|
|
| 2,328,303 |
|
|
| 2,206,986 |
|
Loans, net |
|
| 42,243,957 |
|
|
| 40,846,479 |
|
|
| 38,115,562 |
|
|
| 37,136,853 |
|
Due from customers on acceptances |
|
| 15,693 |
|
|
| 15,693 |
|
|
| 139,685 |
|
|
| 139,685 |
|
Other accounts receivables and other assets, net |
|
| 673,562 |
|
|
| 673,562 |
|
|
| 630,430 |
|
|
| 630,430 |
|
Total |
|
| 63,399,271 |
|
|
| 61,783,181 |
|
|
| 52,427,861 |
|
|
| 51,327,835 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and obligations |
|
| 45,219,640 |
|
|
| 45,208,864 |
|
|
| 38,099,641 |
|
|
| 38,093,224 |
|
Inter-bank funds |
|
| — |
|
|
| — |
|
|
| 169,138 |
|
|
| 169,138 |
|
Due to banks and correspondents |
|
| 10,565,571 |
|
|
| 10,554,998 |
|
|
| 3,982,373 |
|
|
| 3,979,637 |
|
Bonds, notes and other obligations |
|
| 8,148,025 |
|
|
| 7,696,094 |
|
|
| 7,118,547 |
|
|
| 6,890,290 |
|
Due from customers on acceptances |
|
| 15,693 |
|
|
| 15,693 |
|
|
| 139,685 |
|
|
| 139,685 |
|
Insurance contract liabilities |
|
| 11,793,254 |
|
|
| 11,793,254 |
|
|
| 11,338,810 |
|
|
| 11,338,810 |
|
Other accounts payable and other liabilities |
|
| 1,861,074 |
|
|
| 1,861,074 |
|
|
| 1,634,243 |
|
|
| 1,634,243 |
|
Total |
|
| 77,603,257 |
|
|
| 77,129,977 |
|
|
| 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 September 30, 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. |
55
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 interim 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 September 30, 2020 and December 31, 2019, the value of the managed off-balance sheet financial assets is as follows:
|
| 30.09.2020 |
|
| 31.12.2019 |
| ||
|
| S/(000) |
|
| S/(000) |
| ||
Investment funds |
|
| 14,332,714 |
|
|
| 13,243,888 |
|
Mutual funds |
|
| 5,547,193 |
|
|
| 5,049,034 |
|
Total |
|
| 19,879,907 |
|
|
| 18,292,922 |
|
|
56