Intercorp Financial Services Inc. Q4 FY2025 earnings call

• Macroeconomic: Peruvian economy has positive growth momentum, expected 3.3% in 2025, sol appreciated ~10%, inflation stable. - Company results: Record net income of 1,900,000,000.0, ROE ~70% despite Ruta de Lima impairment. - Interbank: Record net income, lower cost of risk, increasing risk-adjusted NIM, consumer segment recovering. - Interseguro: Growth in core business, private annuities and life insurance, leveraging synergies. - Inteligo: Double-digit growth in assets under management. - Digital strategy: Payment ecosystem with Plin and Yape driving growth in low-cost funding, enhancing user experience. - Insurance: Digital sales-service at 71%, digital premiums grew 25%. - Wealth Management: Interfondos app engagement rising, digital transactions at 55%.

Interbank achieved a record net income of 1,400,000,000.0. Interseguro continued to grow its core business with solid performance in private annuities and life insurance. Inteligo achieved double-digit growth in assets under management, reaching new record highs in assets under management. The bank's net income was a key component, with Interbank contributing significantly to the overall results. Interseguro's written premiums grew by 661% year over year mainly due to private annuities, and Inteligo's revenues grew 68% with an ROE of 21.5%.

• 2026 ROE expected around 17%, closer to midterm target of 18%. - Loan growth expected high single-digit, above 2025 growth, driven by commercial banking and consumer portfolio recovery. - Cost-income ratio expected to remain around 37%.

• Political cycle volatility during election year, potential for investment delays and changes in market sentiment. - Global market volatility impacting investment results and overall financial performance. - Uncertainty around election outcomes and their potential impact on economic stability and growth.

Q: On Ruta de Lima, will there be further impact in 2026?

A: Based on current info, no further material impairment expected.

Q: On loan growth and asset quality, color on growth segments and asset quality?

A: Higher-yielding loans like credit cards and personal loans expected to grow, cost of risk likely to move closer to historic levels.

Q: On expenses, OpEx growth in 2026?

A: Continue to invest in teams, technology, so similar trend to 2025.

Q: On sustainable ROE, potential to reach 20%?

A: Midterm view is 18% plus, achievable if Peruvian economy performs well.

Q: On NIM in 2026 and profitability outlook for Interseguro and Inteligo?

A: NIM expected to improve with higher-yielding loan growth, Interseguro and Inteligo have structural ROE of 20%.

Q: On deposits and funding growth for loan growth in 2026?

A: Focus on low-cost deposits, using Yape strategy to grow deposits, impacting cost of funds.

Q: On consumer loan market share and competitive dynamics?

A: Market share in consumer loans has seen some loss, but returning to growth with responsible risk appetite.

Q: On key risks in election year?

A: Political risk of election-related disruptions, potential for investment delays and market sentiment changes.

Q: On GDP growth upside and inflation downside as tailwinds?

A: Positive commodity prices and lower oil prices could boost GDP growth and keep inflation low, benefiting the company.