Summary of Intercorp Financial Services (IFS) Q4 2025 Earnings Call

1Key Financial Results and Metrics

Net Income: Achieved a record PEN 1.9 billion, a 49% increase year-over-year.

Return on Equity (ROE): Approximately 16.8% for 2025; 18.5% when excluding the Rutas de Lima impairment.

Loan Growth: Total loan portfolio grew by 4% year-over-year; 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: Maintained at 2.1% for the year, with a quarterly cost of risk at 1.8%.

Deposits: Increased by 5% year-over-year, with a focus on low-cost deposits.

2Strategic Updates and Business Highlights

Interbank: Recorded net income of PEN 1.4 billion, driven by lower cost of risk and improved net interest margins.

Interseguro: Continued strong performance in private annuities and life insurance, achieving a 61% increase in written premiums.

Inteligo (Wealth Management): Grew assets under management to $9.1 billion, with a 68% revenue increase.

Digital Initiatives: Continued investment in technology and digital platforms, including enhancements to PLIN and Izipay, which are driving customer engagement and transaction volumes.

3Forward Guidance and Outlook

2026 Expectations: Anticipated ROE of around 17%, with high single-digit loan growth expected to exceed 2025 levels.

NIM Outlook: Slight improvement expected as higher-yielding loans grow and cost of funds decrease.

Market Position: IFS aims to maintain its leadership in the Peruvian market, leveraging a strong macroeconomic backdrop and digital strategy.

4Bad News, Challenges, or Points of Concern

Rutas de Lima Impairment: A significant impairment of PEN 205 million impacted results, although no further impairments are expected.

Political Risks: The upcoming elections pose potential risks to economic stability and investor confidence, with concerns about market-unfriendly candidates.

Market Share Loss: IFS has seen a decline in market share in certain segments, particularly in consumer loans, due to competitive pressures and the impact of pension fund withdrawals on loan growth.

5Notable Q&A Insights

Rutas de Lima: Management expressed confidence that no further impairments would occur, with approximately 80% of the provision already accounted for.

Loan Growth and Asset Quality: Higher-yielding loans are expected to drive growth, but may also slightly increase the cost of risk.

ROE Projections: The bank's ROE recovery is contingent on the growth of higher-yielding loans, with management cautious about aggressive growth due to political uncertainties.

PLIN Market Share: Estimated at around 15% of the P2P and P2M market, with Interbank holding over half of that share, indicating strong growth potential in the digital payments space. Overall, IFS reported strong financial results and maintained a positive outlook despite facing challenges from political risks and competitive pressures. The focus on digital transformation and strategic investments positions the company well for future growth.