IFS Q4 2025 Earnings Call Summary

Summary of Intercorp Financial Services Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

Net Income: Achieved a record of 1.9 billion (49% increase YoY).
Return on Equity (ROE): Reported at 16.8%; adjusted ROE excluding the Ruta de Lima impairment would be 18.5%.
Loan Growth: Total loan portfolio grew 4% YoY; higher-yielding loans increased by 8%.
Risk-Adjusted Net Interest Margin (NIM): Improved by 50 basis points to 4% in Q4; full-year NIM at 5.2%.
Cost of Risk: Remained low at 2.1%; quarterly cost of risk at 1.8%.
Deposits: Increased by 5% YoY, with a focus on low-cost deposits.

2. Strategic Updates and Business Highlights

Interbank Performance: Achieved record net income of 1.4 billion, driven by lower cost of risk and improved NIM.
Insurance Segment (Interseguro): Continued double-digit growth, with written premiums up 661% YoY, primarily in private annuities.
Wealth Management (Inteligo): Achieved record assets under management, growing double digits.
Digital Strategy: Enhanced payment ecosystem through Yape and Plin, with significant growth in transactional volumes and user engagement.
Investment in Technology: Continued focus on digital excellence, cybersecurity, and innovation, leading to a cost-to-income ratio of 36.8%.

3. Forward Guidance and Outlook

2026 Expectations:
- ROE projected to be around 17%, with a target of 18% in the medium term.
- Anticipated high single-digit loan growth, driven by both commercial banking and recovery in the consumer portfolio.
- Continued focus on efficiency with a cost-to-income ratio around 37%.

4. Bad News, Challenges, or Points of Concern

Ruta de Lima Impairment: Affected Q4 results, with a total impairment of 2 billion; while no further impairments are expected, it remains a concern.
Political Risks: The upcoming elections pose uncertainties that could affect economic stability and investor confidence.
Market Competition: Increased competition in consumer loans, particularly in payroll-deductible loans, has led to some market share loss.
Economic Volatility: The potential for political instability could impact growth and consumer sentiment, despite positive macroeconomic indicators.

5. Notable Q&A Insights

Ruta de Lima: Management is confident that no further material impairments will occur in 2026.
Loan Growth and Asset Quality: Expected gradual increase in higher-yielding loans, with a potential rise in cost of risk to around 2.5%.
ROE Comparisons: Management indicated that achieving a sustainable ROE closer to 20% is possible but contingent on the recovery of the bank's higher-yielding loan portfolio.
Market Dynamics: The impact of pension fund withdrawals on loan growth was acknowledged, with expectations for stronger demand once these funds are depleted.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, and challenges faced by Intercorp Financial Services Inc. during Q4 2025, providing a comprehensive overview for stakeholders.

IFS — Intercorp Financial Services Inc.