Intercorp Financial Services Inc. Q2 FY2025 earnings call

• Macroeconomic: Peruvian economy had 3.1% growth as of May, low inflation, stable exchange rate. Central Bank revised internal demand forecast. - IFS Performance: Strong year-over-year recovery with ROE exceeding 20%. Interbank gained market share, consumer activity showed signs of growth. Interseguro expanded in private annuities. Inteligo had assets under management reach new highs. - Digital Strategy: Focus on primary banking relationships, PLIN with 2.4 million active monthly customers, retail primary banking customers up 10%. - Sustainability: Sustainable loan portfolio at EUR 400 million, renewable energy efforts, inclusive growth initiatives, ranked in diversity and inclusion rankings.

Interbank: Showed solid momentum in commercial banking with a 90 basis point gain in market share within the segment. Consumer activity was dynamic with higher cash loan disbursements and credit card turnover, though consumer portfolio growth was slower than expected. NIM remained stable, cost of risk performed better than anticipated. Interseguro: Continued growth with notable expansion in private annuities and life insurance, remaining market leaders. Inteligo: Wealth Management segment had assets under management grow 14% year-over-year, with strong investment results driving high ROE. Revenue contribution details were not explicitly stated in absolute percentages but each segment contributed to overall strong performance.

• NIM expected to improve in second half due to portfolio mix shift and repayment of subordinated bond impact. - ROE for full year expected to be closer to 17% as second half normalizes. - Loan growth expected to have a slight recovery, cost of risk expected to remain below guidance but see slight increase as consumer loan book resumes growth.

• Volatility from international context and next year's Peruvian presidential elections. - Liquidity events like funds withdrawals have not supported credit growth and banks remain cautious.

Q: Could you elaborate on NIM expectations for the second half and trends next year, especially with retail segment acceleration?

A: NIM expected to improve in second half due to portfolio mix shift (more consumer loans) and repayment of subordinated bond impact. In 2026, expected portfolio mix with more consumer loans to positively impact yields, and continued improvement in cost of funds.

Q: Regarding asset quality guidance and trend, is guidance around 3% for this year and how will cost of risk trend with retail segment growth?

A: Guidance was around 3%, cost of risk is currently 2.5% (low), but as consumer loan book resumes growth, cost of risk will see a slight increase in coming quarters and 2026, though speed is uncertain.

Q: How to think about OpEx growth for the second half and next year, similar to second half trends or normalizing above inflation?

A: OpEx has had a step-up this year, rate of increase won't be same, but will continue to increase with business growth. Investing in analytics, Gen AI which brings additional OpEx, closer to past increase rates depending on business growth.