Earnings Presentation 2Q22 Results Intercorp Financial Services Important disclosure Acquisition of Procesos de Medios de Pago S.A. and Subsidiary (Izipay) In April 2022, IFS acquired 50 percent of the capital stock of Procesos de Medios de Pago S.A. and its subsidiary Izipay S.A.C. (henceforth "Izipay Group", "Izipay" or "acquired entities"). The amount paid for the transaction was US$83,775,000 (equivalent to approximately S/312,647,000). After this acquisition, IFS holds, directly and indirectly, 100 per ...

[Overall Performance Summary (2Q 2022)](index=1&type=section&id=Intercorp%20Financial%20Services%20Inc.%20Second%20Quarter%202022%20Earnings) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) IFS's quarterly profit declined significantly due to a major investment loss in Wealth Management, despite the consolidation of Izipay - Overall results were significantly impacted by a **S/ -147.0 million investment loss** in the Wealth Management business, which dragged down the company's consolidated profit despite strong performance in other segments[9](index=9&type=chunk) - In April 2022, IFS **acquired the remaining 50% of Procesos de Medios de Pago S.A. (Izipay)**, making it a wholly-owned subsidiary and a key pillar of its payments ecosystem[3](index=3&type=chunk)[217](index=217&type=chunk) IFS Consolidated Net Profit and ROE (2Q22) | Metric | 2Q22 | 1Q22 | 2Q21 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Profit (S/ million)** | 251.3 | 403.3 | 455.5 | -37.7% | -44.8% | | **Annualized ROE** | 11.1% | 17.4% | 20.0% | -6.3 p.p. | -8.9 p.p. | | **ROE (ex-Wealth Mgt. loss)** | 17.5% | - | - | - | - | Profit Contribution by Business Segment (S/ million) | Business Segment | 2Q22 | 1Q22 | 2Q21 | | :--- | :--- | :--- | :--- | | **Banking** | 321.2 | 322.4 | 274.3 | | **Insurance** | 77.0 | 38.6 | 108.9 | | **Wealth Management** | (120.3) | 3.0 | 89.6 | | **Payments** | 12.6 | - | - | [Performance by Business Segment](index=6&type=section&id=CONTRIBUTION%20BY%20BUSINESS) [Banking (Interbank)](index=7&type=section&id=Interbank) The banking segment delivered stable profit driven by strong net interest income growth and significant margin expansion - Performing loans grew 5.2% YoY, driven by an **18.2% increase in retail loans**, while total performing loans excluding the Reactiva Peru Program would have **grown 14.1% YoY**[50](index=50&type=chunk)[51](index=51&type=chunk) - The **total regulatory capital ratio stood at 15.2%**, well above the minimum requirement, with a **Core Equity Tier 1 (CET1) ratio of 11.1%**[119](index=119&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) Interbank Key Performance Indicators (2Q22) | Metric | 2Q22 | 1Q22 | 2Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period (S/ million)** | 321.2 | 322.4 | 274.3 | | **ROE** | 19.4% | 19.1% | 17.3% | | **NIM** | 4.9% | 4.5% | 3.9% | | **Efficiency Ratio** | 42.3% | 41.7% | 42.5% | | **Cost of Risk (Impairment/Avg Loans)** | 1.8% | 1.4% | 1.7% | [Insurance (Interseguro)](index=16&type=section&id=Interseguro) The insurance segment saw a strong quarterly profit rebound from real estate gains but declined year-over-year from a high base - The **quarterly profit surge was mainly due to higher net gain on valuation of real estate investments**, while the **annual decline was primarily caused by a S/ 113.5 million YoY decrease** in net gain on financial assets[127](index=127&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - **Annuities premiums, a key business line, contracted by 27.8% QoQ and 16.2% YoY**, partially offset by growth in other retail lines[144](index=144&type=chunk)[145](index=145&type=chunk) Interseguro Key Performance Indicators (2Q22) | Metric | 2Q22 | 1Q22 | 2Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period (S/ million)** | 77.0 | 38.6 | 108.9 | | **ROE** | 31.6% | 15.7% | 43.2% | | **Net Premiums (S/ million)** | 234.0 | 272.3 | 225.0 | [Wealth Management (Inteligo)](index=20&type=section&id=Inteligo) The wealth management segment recorded a substantial loss driven by negative mark-to-market results on its proprietary portfolio - The primary driver of the loss was a **mark-to-market loss on the proprietary portfolio**, resulting in a **S/ -140.8 million net trading loss**[160](index=160&type=chunk)[176](index=176&type=chunk) - **Assets Under Management (AUM) decreased 5.0% YoY**, mainly due to outflows in mutual funds and lower mark-to-market valuations[162](index=162&type=chunk)[166](index=166&type=chunk) Inteligo Key Performance Indicators (2Q22) | Metric | 2Q22 | 1Q22 | 2Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period (S/ million)** | (120.3) | 3.0 | 89.6 | | **Other Income (Loss) (S/ million)** | (147.0) | (24.3) | 52.3 | | **Net Fee Income (S/ million)** | 44.6 | 40.8 | 49.1 | | **AUM (S/ million)** | 21,423.8 | 21,307.0 | 22,557.7 | [Payments (Izipay)](index=23&type=section&id=Izipay) The newly consolidated payments segment contributed positively to profit, fueled by strong growth in merchant services and transactions - Annual growth was driven by strong business expansion, with **merchants and transactional volumes growing 53% and 66% YoY**, leading to a **74.9% YoY increase in income** from acquirer services[182](index=182&type=chunk)[186](index=186&type=chunk)[189](index=189&type=chunk) - Strong revenue growth was partially offset by higher costs related to customer acquisition and license fees, including a **42.3% YoY increase in other expenses** and a **93.4% YoY rise in service costs**[182](index=182&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) Izipay Key Performance Indicators (2Q22, Proforma) | Metric | 2Q22 | 1Q22 | 2Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period (S/ million)** | 12.6 | 15.1 | 10.3 | | **ROE** | 26.9% | 35.1% | 30.5% | | **Net Fee Income (S/ million)** | 72.3 | 72.2 | 53.3 | | **Efficiency Ratio** | 63.6% | 54.6% | 54.6% | [Interim Consolidated Financial Statements](index=25&type=section&id=Interim%20consolidated%20financial%20statements) [Consolidated Statement of Financial Position](index=27&type=section&id=Interim%20consolidated%20statement%20of%20financial%20position) Total assets and liabilities decreased slightly, while equity was negatively impacted by unrealized investment losses Consolidated Statement of Financial Position (S/ 000) | Account | June 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **85,702,484** | **89,953,909** | | Cash and due from banks | 12,303,969 | 17,104,465 | | Financial investments | 23,594,353 | 24,547,294 | | Loans, net | 43,980,349 | 43,005,583 | | **Total Liabilities** | **76,687,682** | **80,398,547** | | Deposits and obligations | 47,277,705 | 48,897,944 | | Insurance contract liabilities | 10,351,718 | 11,958,058 | | **Total Equity, net** | **9,014,802** | **9,555,362** | [Consolidated Statement of Income](index=28&type=section&id=Interim%20consolidated%20statement%20of%20income) Half-year net profit declined as significant investment losses outweighed growth in net interest and fee income Consolidated Income Statement - Six Months Ended June 30 (S/ 000) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Net interest and similar income | 1,976,442 | 1,701,365 | | Fee income from financial services, net | 488,919 | 401,873 | | Net (loss) gain on financial assets at FVTPL | (150,428) | 144,259 | | **Net profit for the period** | **654,597** | **984,301** | | *Attributable to IFS's shareholders* | *649,876* | *979,711* | | **Earnings per share (Soles)** | **5.631** | **8.488** | [Selected Notes to Financial Statements](index=33&type=section&id=Notes%20to%20the%20interim%20consolidated%20financial%20statements) Notes detail the Izipay acquisition, dividend distributions, a major tax contingency, and fair value asset classifications - In April 2022, IFS **acquired the remaining 50% of Izipay for US$83.8 million**, gaining 100% control and recording a **preliminary goodwill of S/ 222.5 million**[217](index=217&type=chunk)[219](index=219&type=chunk) - The company approved and paid a **dividend distribution of US$1.75 per share** (approx. S/ 751.5 million total) in May 2022[289](index=289&type=chunk) - Interbank has **ongoing tax litigation** with a **potential liability of approximately S/ 431 million**, for which **no provision has been recorded** based on legal advice[300](index=300&type=chunk)[301](index=301&type=chunk) Fair Value Hierarchy of Financial Assets (S/ 000) - June 30, 2022 | Level | Financial Assets at Fair Value | % of Total | | :--- | :--- | :--- | | **Level 1** | 13,186,267 | 64.2% | | **Level 2** | 6,272,306 | 30.5% | | **Level 3** | 1,098,452 | 5.3% | | **Total** | **20,557,025** | **100.0%** |

Financial Data and Key Metrics Changes - Intercorp Financial Services (IFS) reported a return on equity (ROE) of 17.4%, reflecting a strong recovery in core business despite negative impacts on the investment portfolio [15][58] - Earnings grew over 50% on a quarterly basis, driven by strong growth in the core banking business and partial recovery of insurance and wealth management investment portfolios [16] - Yearly earnings decreased by 24%, primarily due to extraordinary results in the first quarter of 2021 that were not replicated this year [16] Business Line Data and Key Metrics Changes - At Interbank, ROE reached 19.1%, with significant growth in consumer finance and SME, particularly in credit cards and personal loans, which increased by 41% year-on-year [17] - Interseguro's earnings grew almost threefold quarter-on-quarter, with ROE at 15.7% and gross premiums plus collections increasing by 26% year-over-year [18] - Inteligo faced challenges with its investment portfolio, resulting in a slight decrease in assets under management due to negative mark-to-market valuations [19] Market Data and Key Metrics Changes - The efficiency ratio for IFS remained healthy at 37%, despite negative impacts from the investment portfolio [21] - Total revenue for IFS grew double-digit on a quarterly basis, with Interbank's revenues increasing by 16.5% year-over-year when excluding extraordinary gains from the previous year [22] - The cost of risk was reported at 1.4%, below the guidance of 1.8% and still below pre-COVID levels [39] Company Strategy and Development Direction - The company announced the acquisition of a 50% stake in Izipay, completing 100% ownership, which is expected to enhance its competitive positioning in the payments landscape in Peru [12][27] - IFS is focused on a two-tier digital strategy to foster growth, emphasizing digitalization of core activities and new growth initiatives [43][44] - The company aims to empower Peruvians to achieve financial well-being through its services and products [12] Management's Comments on Operating Environment and Future Outlook - The management highlighted a volatile macro and political scenario in Peru, with GDP growth expectations between 2.5% and 3% for the year [9][31] - Political uncertainty is expected to persist, impacting public and private investment recovery [10] - Despite challenges, the company remains resilient, with a strong recovery in core banking and sound risk indicators [10][31] Other Important Information - The company reported a significant increase in digital customer engagement, with 65% of customers interacting digitally in the last 30 days [48] - Inflation in Peru reached 8% as of April, with the Central Bank's reference rate increasing to 5% [32] - The company is committed to sustainability efforts, focusing on inclusion, environmental finance, and corporate governance [54][56] Q&A Session Summary Question: Sensitivity of IFS's net interest income to interest rates - Management indicated a neutral to positive effect from a 100 basis point increase in soles rates, while a similar increase in dollars would have a negative impact of around $4 million to $5 million [71][72] Question: RappiBank joint venture evolution - The RappiBank initiative has seen close to 60,000 credit cards placed, but management is refining the value proposition due to challenges in customer loan uptake [75][78] Question: Loan growth and asset quality impact from inflation and interest rates - Management expressed confidence in maintaining strong ROE levels, with sustainable ROE projected at over 18% in the coming years [90][91]

Financial Performance Highlights - Intercorp Financial Services (IFS) reported a Return on Equity (ROE) of 174% in 1Q22, supported by Interbank's ROE of 191%[3, 7] - Banking segment's ROE reached 191% in 1Q22[5] - Insurance segment's ROE was 157% in 1Q22, with earnings growing almost threefold Quarter-over-Quarter (QoQ)[4, 6] - Wealth Management ROE was 10%[4] Banking Segment Performance - Strong recovery in core banking business, with consumer finance and SME indicators showing solid performance[6, 16, 17, 19, 26, 42, 45, 65, 70] - Credit cards and personal loans increased by 41% Year-over-Year (YoY)[6, 21] - Net Interest Income (NII) and fee income experienced double-digit growth[6, 22] - Net Interest Margin (NIM) reached 45% in 1Q22, driven by a shift in loan mix and higher rates[6, 24] - Cost of Risk (CoR) stood at 14%[6, 27] Izipay Acquisition - IFS now controls 100% of Izipay after acquiring the remaining 50%[7, 13] - Izipay has over 600,000 merchant locations[14] - Izipay processed merchant transactions worth S/337 million on Last Twelve Months (LTM)[13] Digital Strategy - IFS is implementing a "two-tier" digital strategy to foster growth[16, 17, 19, 26, 42, 45, 46, 65, 70] - Digital customers account for 65% of Interbank's customer base[51] - Tunki, IFS' digital wallet, has 18 million users[54] Loan Portfolio - Total loans grew by 23% YoY[72] - Reactiva Peru loan balances decreased by 34% YoY, representing 9% of the total portfolio[39, 40]

[Intercorp Financial Services (IFS) Overall Performance](index=1&type=section&id=Intercorp%20Financial%20Services%20Overall%20Performance) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) IFS reported a Q1 2022 net profit of S/ 403.3 million with a 17.4% ROAE, driven by Interbank's strong core business IFS Key Financial Metrics Q1 2022 | Metric | 1Q21 | 4Q21 | 1Q22 | | :--- | :--- | :--- | :--- | | **Net Profit (S/ million)** | 528.7 | 264.4 | 403.3 | | **EPS (S/)** | 4.56 | 2.26 | 3.47 | | **ROAE** | 23.7% | 10.9% | 17.4% | | **ROAA** | 2.4% | 1.2% | 1.8% | | **Efficiency Ratio** | 30.0% | 44.6% | 37.2% | - IFS's Q1 2022 net profit was **S/ 403.3 million**, a **52.6% increase QoQ** but a **23.7% decrease YoY**[4](index=4&type=chunk) - The annualized ROAE for Q1 2022 was **17.4%**, up from 10.9% in Q4 2021 but down from 23.7% in Q1 2021[6](index=6&type=chunk) - The performance was supported by a **19.1% ROE at Interbank**, while Inteligo's results were negatively affected by its investment portfolio[2](index=2&type=chunk) [Financial Position Analysis](index=2&type=section&id=Financial%20Position%20Analysis) As of March 2022, total assets decreased 5.1% QoQ to S/ 85.4 billion, driven by a reduction in cash balances Statement of Financial Position (S/ million) | Account | 03.31.21 | 12.31.21 | 03.31.22 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 90,042.3 | 89,953.9 | 85,383.9 | (5.1)% | (5.2)% | | **Total Liabilities** | 81,121.0 | 80,398.5 | 76,362.2 | (5.0)% | (5.9)% | | **Total Equity, net** | 8,921.3 | 9,555.4 | 9,021.7 | (5.6)% | 1.1% | - The decrease in total assets was mainly driven by a **20.1% QoQ reduction** in 'Cash and due from banks and inter-bank funds'[4](index=4&type=chunk) - Net loans decreased slightly by **1.7% QoQ** to S/ 44,320.3 million[4](index=4&type=chunk) [Profit & Loss Analysis](index=3&type=section&id=Profit%20%26%20Loss%20Analysis) Q1 2022 profit rose 52.6% QoQ on lower expenses but fell 23.7% YoY due to a high base effect from prior investment gains [Quarter-on-Quarter (QoQ) Performance](index=3&type=section&id=Quarter-on-Quarter%20(QoQ)%20Performance) Profits surged 52.6% QoQ, driven by Inteligo's mark-to-market recovery, reduced expenses, and a lower effective tax rate - Profits increased **52.6% QoQ**, mainly due to lower mark-to-market losses at Inteligo, positive developments in other income, and a reduction in other expenses across all subsidiaries[10](index=10&type=chunk) - Other income reversed positively, driven by a significant recovery in mark-to-market valuations on **Inteligo's proprietary portfolio**[14](index=14&type=chunk) - Other expenses decreased by **9.1% QoQ**, explained by lower administrative expenses across all subsidiaries[17](index=17&type=chunk) - The effective tax rate decreased from **42.3% in Q4 2021 to 19.1% in Q1 2022**, contributing to higher earnings[18](index=18&type=chunk) [Year-on-Year (YoY) Performance](index=4&type=section&id=Year-on-Year%20(YoY)%20Performance) Profits declined 23.7% YoY due to a high base from extraordinary 2021 investment gains and increased operating expenses - Profits decreased **23.7% YoY**, mainly due to a base effect of extraordinary gains on investments in Q1 2021 and higher other expenses across all subsidiaries[19](index=19&type=chunk) - Net interest and similar income grew **13.3% YoY**, primarily due to higher interest on all interest-earning assets at Interbank[20](index=20&type=chunk) - Other income declined by **S/ 283.7 million YoY**, mainly due to a lower net gain on the sale of financial investments, which included an extraordinary gain on sovereign bonds at Interbank in Q1 2021[23](index=23&type=chunk) - Other expenses grew **13.5% YoY** due to higher administrative expenses and salaries, associated with a higher level of activity[25](index=25&type=chunk) [Contribution by Segments](index=5&type=section&id=Contribution%20by%20Segments) Interbank was the primary profit contributor in Q1 2022, while Inteligo's profit fell sharply YoY and Interseguro's dropped significantly Profit by Segment (S/ million) | Segment | 1Q21 | 4Q21 | 1Q22 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | :--- | :--- | | **Interbank** | 319.8 | 467.1 | 322.4 | (31.0)% | 0.8% | | **Interseguro** | 137.1 | 13.4 | 38.6 | n.m. | (71.8)% | | **Inteligo** | 86.9 | (76.6) | 3.0 | n.m. | (96.6)% | | **Corporate and eliminations** | (15.0) | (139.4) | 39.2 | n.m. | n.m. | | **IFS profit for the period** | 528.7 | 264.4 | 403.3 | 52.6% | (23.7)% | [Segment Analysis](index=6&type=section&id=Segment%20Analysis) [Interbank](index=6&type=section&id=Interbank) Interbank's profit was stable YoY at S/ 322.4 million, with a strong 19.1% ROAE and expanded NIM, driven by retail loan growth [Summary of Performance](index=6&type=section&id=Interbank%20Summary%20of%20Performance) Interbank's Q1 2022 profit was S/ 322.4 million, down 31.0% QoQ from a provision reversal but stable YoY with a solid 19.1% ROAE Interbank P&L Highlights (S/ million) | Metric | 1Q21 | 4Q21 | 1Q22 | | :--- | :--- | :--- | :--- | | **Profit for the period** | 319.8 | 467.1 | 322.4 | | **ROAE** | 20.5% | 27.8% | 19.1% | | **NIM** | 3.7% | 4.4% | 4.5% | - The quarterly profit decrease was mainly attributed to higher impairment loss on loans compared to Q4 2021, which had a significant reversion of provisions[32](index=32&type=chunk) - Excluding the one-off provision reversal in Q4 2021, ROAE for that quarter would have been **15.5%**, making the Q1 2022 ROAE of **19.1%** a strong improvement[34](index=34&type=chunk) [Interest-Earning Assets and Loan Portfolio](index=6&type=section&id=Interest-Earning%20Assets%20and%20Loan%20Portfolio) The loan portfolio grew 2.2% YoY, driven by strong retail loan performance which offset a contraction in commercial loans - Retail loans grew **4.0% QoQ** and **17.9% YoY**, driven by consumer loans (up 5.6% QoQ) and mortgages (up 1.6% QoQ)[46](index=46&type=chunk)[48](index=48&type=chunk) Retail Loan Portfolio Breakdown (S/ million) | Loan Type | 03.31.21 | 12.31.21 | 03.31.22 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | :--- | :--- | | **Credit cards & other loans** | 5,778.0 | 7,471.8 | 8,145.5 | 9.0% | 41.0% | | **Payroll deduction loans** | 4,445.2 | 4,542.1 | 4,545.3 | 0.1% | 2.3% | | **Mortgages** | 7,647.0 | 8,247.1 | 8,376.3 | 1.6% | 9.5% | | **Total Retail Loans** | 17,870.3 | 20,261.1 | 21,067.1 | 4.0% | 17.9% | - Commercial loans decreased **6.3% QoQ** and **10.3% YoY**, affected by the maturity and prepayment of loans under the Reactiva Peru Program[44](index=44&type=chunk)[47](index=47&type=chunk) [Funding Structure and Deposits](index=8&type=section&id=Funding%20Structure%20and%20Deposits) The total funding base declined due to reduced Central Bank funds, with resilient retail deposit growth offsetting institutional declines - Total funding base declined **5.7% QoQ** and **8.7% YoY**, influenced by the reduction of Central Bank funds related to the Reactiva Peru Program[55](index=55&type=chunk)[56](index=56&type=chunk)[59](index=59&type=chunk) Deposits by Customer Service (S/ million) | Customer Type | 03.31.21 | 12.31.21 | 03.31.22 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | :--- | :--- | | **Retail** | 21,115.3 | 22,911.8 | 22,190.3 | (3.1)% | 5.1% | | **Commercial** | 16,534.4 | 15,443.0 | 15,447.6 | 0.0% | (6.6)% | | **Institutional** | 8,480.3 | 6,251.7 | 4,907.7 | (21.5)% | (42.1)% | | **Total** | 46,636.8 | 44,966.3 | 42,885.9 | (4.6)% | (8.0)% | [Net Interest and Similar Income (NII)](index=9&type=section&id=Net%20Interest%20and%20Similar%20Income%20(NII)) NII grew 15.6% YoY as the Net Interest Margin expanded to 4.5%, driven by higher asset yields and a shift to retail loans NII and NIM Performance | Metric | 1Q21 | 4Q21 | 1Q22 | Change QoQ | Change YoY | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income (S/ million)** | 647.0 | 745.6 | 748.0 | +0.3% | +15.6% | | **NIM** | 3.7% | 4.4% | 4.5% | +10bps | +80bps | - The average yield on interest-earning assets increased by **40 bps QoQ** and **110 bps YoY to 6.1%**, in line with higher returns on due from banks and investments[70](index=70&type=chunk)[77](index=77&type=chunk)[88](index=88&type=chunk) - The average cost of funding increased by **20 bps QoQ** and **40 bps YoY to 1.8%**, mainly due to a higher cost of deposits following Central Bank rate hikes[72](index=72&type=chunk)[81](index=81&type=chunk)[92](index=92&type=chunk) [Asset Quality and Provisions](index=12&type=section&id=Asset%20Quality%20and%20Provisions) Asset quality remained solid with an improved Stage 3 NPL ratio of 2.9% and a lower annualized cost of risk at 1.4% Key Credit Quality Ratios | Ratio | 1Q21 | 4Q21 | 1Q22 | | :--- | :--- | :--- | :--- | | **Cost of Risk (Impairment/Avg Loans)** | 1.8% | (0.9)% | 1.4% | | **S3 NPL Ratio** | 3.1% | 3.1% | 2.9% | | **S3 NPL Coverage Ratio** | 212.8% | 159.4% | 168.7% | - The Stage 3 NPL ratio decreased **20 basis points QoQ and YoY to 2.9%**, primarily due to a 20 bps quarterly decrease in retail loans' NPL[97](index=97&type=chunk) - The annualized cost of risk was **1.4% in Q1 2022**, lower than the 1.8% in Q1 2021[95](index=95&type=chunk) [Non-Interest Income (Fees & Other)](index=12&type=section&id=Non-Interest%20Income%20(Fees%20%26%20Other)) Net fee income grew 14.3% YoY, while other income fell significantly due to a high base effect from prior-year investment gains - Net fee income increased **14.3% YoY**, primarily from higher commissions on credit card services, maintenance fees, and banking services[100](index=100&type=chunk) - Other income decreased **39.8% YoY**, mostly due to a lower net gain on the sale of financial investments compared to an extraordinary gain in Q1 2021[104](index=104&type=chunk) [Other Expenses and Efficiency](index=13&type=section&id=Other%20Expenses%20and%20Efficiency) Other expenses rose 12.5% YoY due to higher business activity, while the efficiency ratio improved slightly QoQ to 41.7% Efficiency Ratio | Period | Efficiency Ratio | | :--- | :--- | | 1Q21 | 39.1% | | 4Q21 | 42.2% | | 1Q22 | 41.7% | - The **12.5% YoY increase** in other expenses was due to higher salaries and employee benefits (including profit sharing) and administrative expenses from higher activity levels[107](index=107&type=chunk)[108](index=108&type=chunk) [Regulatory Capital](index=14&type=section&id=Regulatory%20Capital) The total capital ratio stood at 15.5%, well above the regulatory minimum, despite a decline from higher Risk-Weighted Assets Regulatory Capital Ratios | Ratio | 03.31.21 | 12.31.21 | 03.31.22 | | :--- | :--- | :--- | :--- | | **Total Capital Ratio** | 16.9% | 15.9% | 15.5% | | **Tier I Capital / RWA** | 11.5% | 10.9% | 10.9% | | **CET1** | 11.4% | 12.5% | 10.9% | - The total capital ratio of **15.5%** is well above the risk-adjusted minimum requirement of 9.0% for Interbank[119](index=119&type=chunk) - The annual reduction in the capital ratio was due to a **10.2% increase in RWA**, driven by higher requirements for credit and operating risk[116](index=116&type=chunk) [Interseguro](index=15&type=section&id=Interseguro) Interseguro's profit recovered QoQ to S/ 38.6 million but fell 71.8% YoY due to negative investment property valuations [Summary of Performance](index=15&type=section&id=Interseguro%20Summary%20of%20Performance) Q1 2022 profit of S/ 38.6 million marked a strong QoQ recovery but a sharp YoY decline due to a swing in other income Interseguro P&L Highlights (S/ million) | Metric | 1Q21 | 4Q21 | 1Q22 | | :--- | :--- | :--- | :--- | | **Profit for the period** | 137.1 | 13.4 | 38.6 | | **ROAE** | 56.6% | 5.7% | 15.7% | - The YoY profit decrease was mainly due to negative performances of **S/ 167.3 million in other income** and S/ 41.8 million in recovery due to impairment of financial investments[123](index=123&type=chunk) [Results from Investments](index=16&type=section&id=Results%20from%20Investments) Total investment results fell 53.3% YoY from a high base, impacted by losses on investment sales and property valuations Results from Investments Breakdown (S/ million) | Account | 1Q21 | 4Q21 | 1Q22 | | :--- | :--- | :--- | :--- | | **Net interest and similar income** | 165.1 | 184.8 | 184.4 | | **Net gain (loss) on sale of financial investments** | 87.6 | 31.3 | (7.3) | | **Valuation gain (loss) from investment property** | 35.5 | (47.3) | (30.8) | | **Total Results from investments** | 355.4 | 153.3 | 165.8 | - The YoY decrease in investment results was attributed to a negative performance in valuation gain from investment property and a lower net gain on sale of financial investments[132](index=132&type=chunk) [Underwriting Results (Premiums, Reserves, Claims)](index=17&type=section&id=Underwriting%20Results%20(Premiums,%20Reserves,%20Claims)) The underwriting result improved significantly YoY, driven by a 28.5% increase in net premiums and lower COVID-related claims - Net premiums grew **28.5% YoY**, mainly due to increases of S/ 35.1 million in annuities, S/ 15.4 million in retail insurance, and S/ 9.9 million in individual life[137](index=137&type=chunk)[138](index=138&type=chunk) - Net claims and benefits incurred decreased **17.8% YoY**, primarily explained by a S/ 55.5 million reduction in retail insurance claims associated with lower COVID-19 mortality compared to Q1 2021[145](index=145&type=chunk)[146](index=146&type=chunk) [Inteligo](index=19&type=section&id=Inteligo) Inteligo reported a small S/ 3.0 million profit, recovering from a prior quarter loss but collapsing 96.6% YoY on investment losses [Summary of Performance and AUM](index=19&type=section&id=Inteligo%20Summary%20of%20Performance%20and%20AUM) Inteligo's Q1 2022 profit was S/ 3.0 million, a sharp 96.6% drop YoY, while AUM decreased 7.3% QoQ due to market volatility Inteligo P&L Highlights (S/ million) | Metric | 1Q21 | 4Q21 | 1Q22 | | :--- | :--- | :--- | :--- | | **Profit for the period** | 86.9 | (76.6) | 3.0 | | **ROAE** | 30.7% | (22.5)% | 1.0% | - The YoY performance was mainly attributable to a negative development in other income due to a **loss on the sale of investments** in Q1 2022[153](index=153&type=chunk) - AUM decreased **7.3% QoQ** and **4.6% YoY** to S/ 21,310.7 million, mostly because of a lower foreign exchange rate and market volatility[154](index=154&type=chunk)[158](index=158&type=chunk) [Net Interest and Fee Income](index=20&type=section&id=Net%20Interest%20and%20Fee%20Income) Both net interest income and net fee income declined YoY by 7.9% and 17.3% respectively, affected by market volatility - Net interest and similar income decreased **14.5% QoQ** and **7.9% YoY**[162](index=162&type=chunk)[163](index=163&type=chunk) - Net fee income decreased **15.1% QoQ** and **17.3% YoY**, mainly affected by a lower foreign exchange rate and lower client activity amid global markets volatility[165](index=165&type=chunk)[166](index=166&type=chunk) [Other Income and Expenses](index=20&type=section&id=Other%20Income%20and%20Expenses) Other income showed a S/ -24.3 million loss, improving QoQ on trading gains but declining sharply YoY on investment sale losses - Other income (loss) was **S/ -24.3 million**, improving from S/ -110.5 million in Q4 2021 due to a recovery in net trading gain, but down from a S/ 47.7 million gain in Q1 2021[167](index=167&type=chunk)[169](index=169&type=chunk) - Other expenses decreased **11.0% QoQ** due to lower salary and administrative expenses, but increased **11.0% YoY**[171](index=171&type=chunk)[172](index=172&type=chunk) [Consolidated Financial Statements and Notes](index=22&type=section&id=Consolidated%20Financial%20Statements%20and%20Notes) [Consolidated Financial Statements](index=24&type=section&id=Consolidated%20Financial%20Statements) The statements show total assets of S/ 85.4 billion and a net profit of S/ 403.3 million for the three months ended March 31, 2022 [Statement of Financial Position](index=24&type=section&id=Statement%20of%20Financial%20Position) As of March 31, 2022, total assets were S/ 85.4 billion, with total liabilities at S/ 76.4 billion and total equity at S/ 9.0 billion Consolidated Statement of Financial Position (S/ 000) | Account | 31.03.2022 | 31.12.2021 | | :--- | :--- | :--- | | **Total Assets** | **85,383,911** | **89,953,909** | | Cash and due from banks | 13,440,799 | 17,104,465 | | Financial investments | 24,306,689 | 24,547,294 | | Loans, net | 42,281,059 | 43,005,583 | | **Total Liabilities** | **76,362,218** | **80,398,547** | | Deposits and obligations | 46,502,713 | 48,897,944 | | Insurance contract liabilities | 11,031,107 | 11,958,058 | | **Total Equity, net** | **9,021,693** | **9,555,362** | [Statement of Income](index=25&type=section&id=Statement%20of%20Income) Net profit for Q1 2022 was S/ 403.3 million, down from S/ 528.7 million in Q1 2021 due to a net loss on sale of financial investments Consolidated Statement of Income (S/ 000) | Account | 31.03.2022 | 31.03.2021 | | :--- | :--- | :--- | | **Net interest and similar income** | 944,691 | 833,880 | | Impairment loss on loans, net | (149,595) | (189,004) | | Net (loss) gain on sale of financial investments | (35,386) | 206,084 | | Other expenses | (581,207) | (512,042) | | **Net profit for the period** | **403,301** | **528,748** | | **Earnings per share (Soles)** | 3.474 | 4.560 | [Statement of Cash Flows](index=28&type=section&id=Statement%20of%20Cash%20Flows) The period saw a net cash outflow from operations of S/ 1.86 billion, resulting in a S/ 3.16 billion net decrease in cash Consolidated Statement of Cash Flows Highlights (S/ 000) | Activity | 31.03.2022 | 31.03.2021 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | (1,859,008) | 2,058,581 | | **Net cash used in investing activities** | (1,060,224) | (1,475,329) | | **Net cash used in financing activities** | (241,592) | (34,308) | | **Net (decrease) increase in cash and cash equivalents** | (3,160,824) | 548,944 | [Notes to the Financial Statements](index=30&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes detail the impact of the 'Reactiva Peru' program, loan portfolio composition, funding sources, and fair value hierarchies - As of March 31, 2022, Interbank held **S/ 4,267.9 million** in loans from the government's "Reactiva Peru" program, down from S/ 4,976.1 million at year-end 2021[200](index=200&type=chunk) - The loan portfolio is segmented into **Retail Banking, Commercial Banking, and Small Business Banking** for impairment estimation purposes under IFRS 9[239](index=239&type=chunk) - The General Shareholders' Meeting on March 31, 2022, approved a dividend distribution of **US$1.75 per share** for the year 2021[272](index=272&type=chunk) - On April 13, 2022, IFS acquired the remaining 50% of Procesos de Medios de Pago S.A. (PMP), giving it **100% ownership**[339](index=339&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 WASHINGTON, DC 20549 April 25, 2022 Commission File Number 001-38965 INTERCORP FINANCIAL SERVICES INC. (Registrant's name) Intercorp Financial Services Inc. Torre Interbank, Av. Carlos Villarán 140 La Victoria Lima 13, Peru (51) (1) 615-9011 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual re ...

Table of Contents As filed with the Securities and Exchange Commission on April 25, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ ...

Intercorp Financial Services Inc. (NYSE:IFS) Q4 2021 Earnings Conference Call February 11, 2022 9:00 AM ET Company Participants Rafael Borja - IR Luis Felipe Castellanos - CEO Michela Casassa - CFO Conference Call Participants Ernesto Gabilondo - Bank of America Daniel Mora - CrediCorp Capital Operator Good morning, and welcome to Intercorp Financial Services Fourth Quarter 2021 Conference Call. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference is ...

Financial Data and Key Metrics Changes - Intercorp Financial Services reported record earnings of PEN 551 million in Q3 2021, with a return on adjusted equity (ROE) of 23.1% [16] - The nine-month cumulative earnings reached PEN 1,535 million, with a 22% ROE and a 2.3% return on assets [17] - Revenues grew nearly 18% in the nine-month period, with an efficiency ratio of 32% [17] Business Line Data and Key Metrics Changes - At Interbank, earnings were PEN 299 million with an ROE of 18.6%, and retail loans grew 3.6% in the quarter, gaining 10 basis points market share to 18.8% [18] - Interseguro's gross premiums plus collections grew almost 17% quarterly and 90% year-over-year, with a market-leading share of 29.7% in annuities [19] - Inteligo's profit surged due to mark-to-market on investments, with assets under management and deposits growing 4.2% quarter-over-quarter and 22.8% year-over-year [20] Market Data and Key Metrics Changes - Economic activity in Peru has started to decelerate, with GDP growth estimates for 2022 ranging from 1.5% to 2% [24] - Political uncertainty continues to impact growth, particularly in private investment [24][26] - The exchange rate and inflation are influenced by political uncertainty and international pressures, with inflation in Peru slightly below its Latin American peers [26] Company Strategy and Development Direction - The company aims to grow sustainably and empower Peruvians to achieve financial well-being, focusing on digital strategies and adapting to changes [13] - A strong balance sheet with capital and liquidity levels significantly better than pre-COVID levels is emphasized [22] - The company continues to focus on efficiency and branch rationalization, with a low efficiency ratio of 32% [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to a new normality in 2022, despite ongoing political challenges and low consumer confidence [9][11] - The company expects retail loans to continue growing, while commercial loans may decrease due to Reactiva loans and investment slowdowns [76] - Cost of risk is anticipated to normalize but remain below pre-COVID levels, with a sustainable ROE target of around 18% [82] Other Important Information - An extraordinary dividend of $0.65 per share was approved, optimizing the capital structure given the comfortable capital position [69] - The company has seen significant digital adoption, with 79% of customers interacting digitally in the last 30 days [38] Q&A Session Summary Question: Loan growth and net interest income expectations - Management noted that loan growth was flat due to Reactiva loans amortizations, but retail loans grew 3.6% [74] - For next year, similar trends are expected with retail growth and commercial loan decreases due to Reactiva [76] - Net interest income is expected to increase slightly above loan growth due to rising rates and improved credit card portfolio risk [77] Question: Cost of risk normalization - Cost of risk is below pre-COVID levels, with expectations for gradual increases but not reaching pre-COVID levels soon [81] Question: Political uncertainty impact - Political uncertainty remains a concern, affecting consumer and business confidence [87] Question: Deposit dynamics and strategy - The increase in retail deposits is attributed to aggressive digital strategies and participation in government cash distribution [88][90] Question: Efficiency ratio expectations - Efficiency is expected to remain under pressure due to digital investments, with a target of below 40% for IFS as a whole [97] Question: Reactiva loans strategy - The company is offering replacement loans for Reactiva loans, particularly focusing on medium-sized enterprises [99][102] Question: Digital payment solutions monetization - Monetization strategies for digital solutions like Plin and Tunki include merchant partnerships and service payments [108][109]

[3Q21 Earnings Overview](index=1&type=section&id=Intercorp%20Financial%20Services%20Inc.%20Third%20Quarter%202021%20Earnings) [Highlights](index=1&type=section&id=Highlights) Intercorp Financial Services (IFS) achieved record Q3 2021 earnings of S/ 551.5 million and a strong 23.1% ROAE, driven by Inteligo and Interbank, leading to revised 2021 guidance IFS 3Q21 Key Performance Indicators | Metric | Value | | :--- | :--- | | Net Earnings | S/ 551.5 million | | ROAE | 23.1% | | 9M21 Net Earnings | S/ 1,535.8 million | | 9M21 ROAE | 22.1% | | 9M21 ROAA | 2.3% | - The company's strong performance led to an upward revision of its 2021 guidance for Return on Average Equity (ROAE) and Cost of Risk (CoR)[2](index=2&type=chunk) - Interbank achieved an **18.6% ROAE**, increased its retail loan market share to **18.8%**, and saw its retail deposit market share reach an all-time high of **15.2%**[2](index=2&type=chunk) - Interseguro's quarterly results were weak, affected by lower other income and higher technical reserves, despite strong premium growth[2](index=2&type=chunk) - Inteligo's profits surged due to mark-to-market gains on its investment portfolio, and it saw continued growth in Assets Under Management (AUM) & Deposits, which were up **22.8% YoY**[2](index=2&type=chunk) [Intercorp Financial Services (Consolidated Results)](index=2&type=section&id=Intercorp%20Financial%20Services) [Financial Position](index=2&type=section&id=Intercorp%20Financial%20Services%27%20Statement%20of%20financial%20position) As of September 30, 2021, IFS's total assets grew to S/ 92.4 billion, with liabilities reaching S/ 82.6 billion and equity increasing to S/ 9.75 billion, reflecting overall balance sheet expansion Consolidated Statement of Financial Position (S/ million) | Account | 09.30.21 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | | **Total Assets** | **92,386.6** | **2.0%** | **7.4%** | | Cash and due from banks | 20,330.7 | 4.7% | 15.7% | | Loans, net | 44,037.3 | 0.4% | 0.2% | | **Total Liabilities** | **82,588.7** | **1.7%** | **6.3%** | | Deposits and obligations | 50,904.7 | 2.9% | 12.6% | | **Total Equity, net** | **9,797.9** | **5.1%** | **17.5%** | [P&L Statement and Performance Analysis](index=3&type=section&id=Intercorp%20Financial%20Services%27%20P%26L%20statement) IFS reported a Q3 2021 net profit of S/ 551.5 million, significantly up QoQ and YoY, driven by reduced loan impairment losses and higher other income, partially offset by increased operating expenses Consolidated P&L Statement (S/ million) | Metric | 3Q21 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | | Net interest and similar income | 900.0 | 3.7% | (0.7)% | | Impairment loss on loans, net | (112.1) | (37.0)% | (75.8)% | | Other income | 377.1 | 40.7% | 40.8% | | Other expenses | (585.6) | 11.4% | 31.1% | | **Profit for the period** | **551.5** | **21.1%** | **73.1%** | | **ROAE** | **23.1%** | 310 bps | 730 bps | - Quarter-on-quarter profit growth was driven by higher other income at Inteligo and the holding company, plus lower loan impairment losses at Interbank[9](index=9&type=chunk) - Year-on-year profit growth was mainly due to a **S/ 351.2 million (75.8%) decline** in impairment loss on loans at Interbank, reflecting an improved credit environment compared to the peak of the COVID-19 impact in 3Q20[16](index=16&type=chunk)[18](index=18&type=chunk) - Other expenses increased **11.4% QoQ** and **31.1% YoY**, attributed to higher administrative expenses, salaries, and investments in digital ventures across all subsidiaries[14](index=14&type=chunk)[22](index=22&type=chunk) [Contribution by Segments](index=5&type=section&id=CONTRIBUTION%20BY%20SEGMENTS) [Profit by Segment](index=5&type=section&id=Intercorp%20Financial%20Services%27%20Profit%20by%20segment) In Q3 2021, Interbank remained the top profit contributor at S/ 299.1 million, Inteligo's profit surged to S/ 183.7 million, while Interseguro's contribution sharply declined to S/ 13.4 million Profit by Segment (S/ million) | Segment | 3Q21 Profit | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | | Interbank | 299.1 | 9.1% | n.m. | | Interseguro | 13.4 | (87.7)% | (79.8)% | | Inteligo | 183.7 | n.m. | 66.2% | | **IFS Total Profit** | **551.5** | **21.1%** | **73.1%** | [Segment Analysis](index=6&type=section&id=Segment%20Analysis) [Interbank](index=6&type=section&id=Interbank) Interbank's Q3 2021 profit rose to S/ 299.1 million with an 18.6% ROAE, driven by reduced loan impairment losses and improved NIM, despite a higher efficiency ratio from increased expenses Interbank P&L Highlights (S/ million) | Metric | 3Q21 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | | Net interest and similar income | 681.1 | 1.6% | (8.2)% | | Impairment loss on loans, net | (110.0) | (38.2)% | (76.3)% | | Other expenses | (468.4) | 11.6% | 27.5% | | **Profit for the period** | **299.1** | **9.1%** | **n.m.** | | **ROAE** | **18.6%** | 130 bps | 850 bps | - Retail loans grew **3.6% QoQ**, driven by consumer loans, while commercial loans decreased **3.0%**, partly due to repayments under the Reactiva Peru Program[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) Key Ratios | Ratio | 3Q21 | 2Q21 | 3Q20 | | :--- | :--- | :--- | :--- | | NIM | 4.0% | 3.9% | 4.6% | | NPL Ratio | 3.0% | 3.2% | 3.4% | | NPL Coverage Ratio | 169.2% | 168.7% | 196.5% | | Efficiency Ratio | 47.1% | 42.5% | 35.2% | | Total Capital Ratio | 16.3% | 16.5% | 17.0% | - The NPL ratio improved to **3.0%**, down **20 bps QoQ** and **40 bps YoY**, mainly due to better performance in the retail loan portfolio[102](index=102&type=chunk) - Other expenses rose **11.6% QoQ**, driven by higher administrative costs (marketing, credit card) and employee profit sharing, as well as investments in digital ventures[112](index=112&type=chunk) [Interseguro](index=16&type=section&id=Interseguro) Interseguro's Q3 2021 profit sharply declined to S/ 13.4 million with a 5.3% ROAE, primarily due to mark-to-market losses and increased technical reserves, despite strong net premium growth Interseguro P&L Highlights (S/ million) | Metric | 3Q21 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | | Net Interest and similar income | 193.0 | 15.1% | 38.0% | | Other income | 23.6 | (71.6)% | (62.2)% | | Total premiums earned minus claims and benefits | (87.7) | 90.9% | 38.6% | | **Profit for the period** | **13.4** | **(87.7)%** | **(79.8)%** | | **ROAE** | **5.3%** | -3790 bps | -3040 bps | - The quarterly profit decline was mainly due to a **S/ 59.5 million reduction** in other income (net loss on financial assets) and a **S/ 41.8 million decrease** in 'total premiums earned minus claims and benefits'[126](index=126&type=chunk) - Net premiums increased **13.3% QoQ** to **S/ 254.9 million**, driven by growth in annuities, retail insurance, and individual life premiums[142](index=142&type=chunk)[143](index=143&type=chunk) - Adjustment of technical reserves increased significantly by **S/ 62.8 million QoQ**, mainly attributed to higher reserves for inflation-indexed annuities and the effect of higher sales[146](index=146&type=chunk)[147](index=147&type=chunk) [Inteligo](index=20&type=section&id=Inteligo) Inteligo reported a strong Q3 2021 net profit of S/ 183.7 million and an impressive 56.7% ROAE, driven by mark-to-market gains on investments and significant growth in Assets Under Management and deposits Inteligo P&L Highlights (S/ million) | Metric | 3Q21 | % chg QoQ | % chg YoY | | :--- | :--- | :--- | :--- | | Net interest and similar income | 26.1 | (12.3)% | 4.1% | | Fee income from financial services, net | 50.4 | 2.8% | 25.9% | | Other income | 146.6 | n.m. | 95.0% | | **Profit for the period** | **183.7** | **n.m.** | **66.2%** | | **ROAE** | **56.7%** | 2630 bps | 320 bps | - The solid performance was mainly driven by strong gains in other income, associated with positive mark-to-market valuations on proprietary portfolio investments[160](index=160&type=chunk)[176](index=176&type=chunk) - Assets Under Management (AUM) plus deposits grew **4.2% QoQ** and **22.8% YoY**, reaching **S/ 23.6 billion** in AUM and **S/ 4.7 billion** in client deposits as of September 30, 2021[161](index=161&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Other expenses increased **8.6% QoQ** and **34.7% YoY**, mainly due to an increase in total headcount and the effect of a higher foreign exchange rate on certain cost components[178](index=178&type=chunk) [Interim Consolidated Financial Statements](index=23&type=section&id=Interim%20consolidated%20financial%20statements) [Interim Consolidated Statement of Financial Position](index=25&type=section&id=Interim%20consolidated%20statement%20of%20financial%20position) As of September 30, 2021, IFS's total assets increased to S/ 92.4 billion, with liabilities rising to S/ 82.6 billion and total equity growing to S/ 9.8 billion, reflecting overall balance sheet expansion Consolidated Financial Position (S/ 000) | Account | 30.09.2021 | 31.12.2020 | | :--- | :--- | :--- | | **Total Assets** | **92,386,599** | **88,236,029** | | Cash and due from banks | 20,330,713 | 18,765,482 | | Financial investments | 24,154,724 | 24,277,115 | | Loans, net | 41,738,532 | 40,519,423 | | **Total Liabilities** | **82,588,741** | **79,282,080** | | Deposits and obligations | 50,904,686 | 47,149,275 | | Insurance contract liabilities | 11,412,030 | 12,501,723 | | **Total Equity, net** | **9,797,858** | **8,953,949** | [Interim Consolidated Statement of Income](index=26&type=section&id=Interim%20consolidated%20statement%20of%20income) For the nine months ended September 30, 2021, IFS reported a net profit of S/ 1,535.8 million, a significant turnaround from 2020, primarily due to a substantial reduction in loan impairment losses Consolidated Income Statement for the Nine-Month Period (S/ 000) | Metric | 9M 2021 | 9M 2020 | | :--- | :--- | :--- | | Net interest and similar income | 2,601,340 | 2,551,988 | | Impairment loss on loans, net | (478,950) | (2,066,425) | | Fee income from financial services, net | 600,936 | 537,556 | | Other expenses | (1,623,385) | (1,373,846) | | **Net profit for the period** | **1,535,811** | **6,112** | | **EPS (Soles)** | **13.248** | **0.063** | [Notes to the Interim Consolidated Financial Statements](index=31&type=section&id=Notes%20to%20the%20interim%20consolidated%20financial%20statements) The notes detail the Group's business, accounting policies, and COVID-19 impact, covering financial instruments, loan quality, risk management, related party transactions, and subsequent events, including participation in government relief programs [Note 1: Business Activity & COVID-19 Impact](index=31&type=section&id=1.%20Business%20activity) IFS, a holding company majority-owned by Intercorp Perú, operates in Peru and Panama through its subsidiaries, detailing the COVID-19 impact, government relief programs like 'Reactiva Peru', and liquidity-bolstering measures - As of September 30, 2021, Intercorp Perú Ltd. holds **70.65%** of the issued capital stock of IFS[193](index=193&type=chunk) - The Peruvian Government launched the 'Reactiva Peru' program, providing guarantees for working capital loans. As of September 30, 2021, Interbank held **S/5.51 billion** in loans under this program[202](index=202&type=chunk)[204](index=204&type=chunk) - To strengthen liquidity and solvency, Interbank reduced its 2019 dividend distribution and capitalized profits, while both Interbank and Interseguro placed subordinated bonds in 2020[205](index=205&type=chunk) [Note 6: Loans, Net](index=41&type=section&id=6.%20Loans%2C%20net) The Group's net loan portfolio totaled S/ 41.7 billion, with commercial loans leading the S/ 43.7 billion direct portfolio, and the allowance for expected credit losses decreasing to S/ 2.30 billion due to improved credit conditions Direct Loan Portfolio by Type (S/ 000) | Loan Type | 30.09.2021 | 31.12.2020 | | :--- | :--- | :--- | | Commercial loans | 21,952,006 | 22,001,567 | | Consumer loans | 11,729,174 | 11,416,175 | | Mortgage loans | 8,411,024 | 7,721,267 | | Small and micro-business loans | 1,564,495 | 1,942,895 | | **Total** | **43,656,699** | **43,081,904** | Allowance for Expected Credit Losses - Direct Loans (S/ 000) | Period | Stage 1 | Stage 2 | Stage 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Balance 31.12.2020** | **180,241** | **1,145,207** | **1,659,403** | **2,984,851** | | **Balance 30.09.2021** | **129,711** | **891,235** | **1,277,791** | **2,298,737** | [Note 23: Financial Risk Management](index=73&type=section&id=23.%20Financial%20risk%20management) The Group manages credit, market, liquidity, insurance, and real estate risks, implemented COVID-19 loan rescheduling without derecognition, and maintained a net US Dollar asset position of S/ 2.02 billion as of September 30, 2021 - The Group's main financial risks are credit, market, liquidity, insurance, and real estate risk, managed independently by each subsidiary under the oversight of the IFS Board and Audit Committee[320](index=320&type=chunk)[321](index=321&type=chunk) - Due to the pandemic, Interbank offered three types of loan rescheduling: Structural, Unilateral, and Landing. These adjustments did not constitute a substantial modification, thus avoiding derecognition of the financial assets[323](index=323&type=chunk)[324](index=324&type=chunk)[326](index=326&type=chunk) Foreign Exchange Monetary Position, Net (S/ 000) | Currency | 30.09.2021 | | :--- | :--- | | US Dollars | 2,016,160 | | Soles | 4,082,194 | | Other currencies | 127,221 | | **Total** | **6,225,575** | [Note 26: Subsequent Events](index=78&type=section&id=26.%20Subsequent%20events) On October 12, 2021, IFS sold its InRetail Perú Corp. shares for US$84.1 million, resulting in an equity reclassification of S/ 271.0 million from 'Unrealized results' to 'Retained earnings' without impacting total net equity - On October 12, 2021, IFS sold its shares in InRetail Perú Corp. for **US$84,108,000 (S/341,646,000)**[341](index=341&type=chunk) - The sale resulted in a reclassification within equity, moving a cumulative valuation gain of **S/270,993,000** from 'Unrealized results' to 'Retained earnings', with no impact on total net equity[341](index=341&type=chunk)