Financial Performance - Net income for Q3 2025 was S/ 456 million, representing a 17% increase year-over-year (YoY) and a 21.3% decrease quarter-over-quarter (QoQ) [3] - Accumulated net income increased by 81% YoY, with a return on equity (ROE) of 17.4% [3] - The banking segment's profit rose to S/ 401.2 million, a 34.3% increase YoY and 22.3% increase QoQ [21] - Other income increased by S/ 61.1 million YoY, primarily from the banking and insurance businesses [15] - Net profit for the nine-month period ended September 30, 2025, was S/ 1.48 billion, up from S/ 817.37 million in the same period last year [154] - Net profit for the period increased to S/1,481,882,000 in 2025 from S/817,367,000 in 2024, representing an increase of 81.2% [158] Loan and Asset Management - Higher yielding loans grew by 7% YoY, contributing to a risk-adjusted net interest margin (NIM) of 3.8%, up 40 basis points from the previous quarter [3] - Total performing loans increased by 0.1% QoQ, with retail loans up 2.0% and commercial loans down 1.9% [30] - Year-over-year, performing loans increased by 4.7%, with retail loans growing 3.5% and commercial loans growing 7.1% excluding reactivations [32] - The average volume of loans increased by 1.7%, driven by a 2.3% rise in mortgages and a 0.9% increase in credit cards, while commercial loans decreased by 1.6% [56] - Direct loans increased to S/51,557,729,000 as of September 30, 2025, compared to S/50,415,364,000 as of December 31, 2024 [193] Risk and Impairment - Impairment losses on loans decreased by 31.9% YoY, reflecting improved performance in the retail loan portfolio [5] - Impairment loss on loans, net of recoveries, decreased by 16.8% QoQ, reflecting lower provision requirements across the retail and commercial loan books [69] - The S3 NPL ratio improved to 2.4% in 3Q25, down from 2.9% in 3Q24, with a coverage ratio of 140.5% [74] - The cost of risk for the retail segment decreased by 130 basis points YoY, indicating improved payment behavior among clients [73] Income and Expenses - Fee income from financial services increased by 1% QoQ and 16% YoY, driven by higher transaction volumes [3] - Total expenses decreased by S/ 5.8 million YoY, despite a S/ 31.1 million increase in salaries and employee benefits [87] - The efficiency ratio stood at 38.9% in Q3 2025, indicating a slight increase from the previous quarter [4] Capital and Equity - The Core Equity Tier 1 (CET1) ratio stood at 12.1% as of 3Q25, slightly above the 11.7% in 2Q25 but below the 12.2% in 3Q24 [91] - Total regulatory capital decreased by 5.2% quarter-over-quarter to S/ 10,868.5 million as of 3Q25, while the total capital ratio stood at 15.8% [98] - The balance of total equity as of September 30, 2025, was S/(000) 11,951,000, compared to S/(000) 10,516,100 as of January 1, 2025, showing an increase of approximately 13.6% [157] Digital and Customer Engagement - The banking customer base grew by 4% year-over-year, with retail digital customers increasing from 80% to 83% [143] - Digital insurance premiums rose to S/ 32.4 million in 3Q25, reflecting a strong digital adoption trend [148] - Wealth management digital users reached 30.2%, up from 28.8% in 2Q25, indicating sustained momentum in digital investment tools [149] - Digital self-service usage among retail clients improved to 82% year-over-year, reflecting enhanced customer engagement [143] Investment and Financial Instruments - Total financial investments increased to S/27,361,453,000 as of September 30, 2025, compared to S/26,397,552,000 as of December 31, 2024 [186] - The total debt instruments measured at fair value through other comprehensive income and at amortized cost reached S/24,871,082,000 as of September 30, 2025, compared to S/24,162,717,000 at the end of 2024 [192] - The Group's debt instruments measured at fair value through other comprehensive income amounted to S/20,994,458,000 as of September 30, 2025, up from S/20,377,805,000 as of December 31, 2024 [186] Cash Flow and Liquidity - Net cash used in operating activities was S/(1,028,672,000) in 2025 compared to S/3,948,146,000 provided in 2024, indicating a significant cash outflow shift [158] - Cash and cash equivalents at the end of the period decreased to S/11,450,762,000 in 2025 from S/14,322,736,000 in 2024, a decline of 19.7% [159] - The balance of cash and cash equivalents as of September 30, 2025, was S/(000) 1,721,400, compared to S/(000) 1,610,120 at the beginning of the year, showing an increase of approximately 6.9% [157]

Core Insights - Intercorp Financial Services Inc. (IFS) is well-positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 25.44% over the last two quarters [1][2] Earnings Performance - For the most recent quarter, Intercorp Financial Services reported earnings of $1.41 per share, exceeding the expected $1.07 per share by a surprise of 31.78% [2] - In the previous quarter, the company reported $1.06 per share against an estimate of $0.89 per share, resulting in a surprise of 19.10% [2] Earnings Estimates and Predictions - Recent estimates for Intercorp Financial Services have been increasing, with a positive Earnings ESP of +2.17%, indicating bullish sentiment among analysts regarding its near-term earnings potential [4][7] - The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy) suggests a high likelihood of another earnings beat in the upcoming report [7] Earnings ESP Insights - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [5]

Core Insights - Intercorp Financial Services Inc. (IFS) is currently rated as a Strong Buy with a Zacks Rank of 1, while SoFi Technologies, Inc. (SOFI) holds a Zacks Rank of 3, indicating a Hold status [3] - IFS has demonstrated a stronger improvement in its earnings outlook compared to SOFI, making it a more attractive option for value investors [3][7] Valuation Metrics - IFS has a forward P/E ratio of 8.91, significantly lower than SOFI's forward P/E of 98.77, indicating that IFS may be undervalued [5] - The PEG ratio for IFS is 0.37, while SOFI's PEG ratio stands at 3.73, suggesting that IFS has a better growth-to-price ratio [5] - IFS has a P/B ratio of 1.53 compared to SOFI's P/B of 5.14, further highlighting IFS's relative undervaluation [6] Value Grades - IFS has received a Value grade of B, while SOFI has been assigned a Value grade of F, indicating that IFS is viewed as a more favorable investment based on traditional valuation metrics [6]

Core Points - Intercorp Financial Services Inc. (IFS) will host its Third Quarter 2025 earnings conference call and video webcast presentation on November 07, 2025, at 9:00 a.m. E.T. / 9:00 a.m. Lima Time [1][2] - The company will release its Third Quarter 2025 results on November 06, 2025, after market close [2] - A Quiet Period will commence on October 20, 2025, during which IFS will not disclose any financial information or comment on its financial results or operations [3] Company Overview - Intercorp Financial Services Inc. is incorporated under the laws of Panama and has securities listed on the Lima Stock Exchange and the New York Stock Exchange [4] - IFS is a leading provider of financial services in Peru, with main subsidiaries including Interbank, Interseguro, and Inteligo [4] - Interbank offers full-service banking to retail and commercial customers, while Interseguro provides various insurance products, and Inteligo focuses on wealth management and brokerage services [4]

Core Insights - Intercorp Financial Services Inc. (NYSE:IFS) is a dividend stock that is gaining attention due to its integration of AI technology and customer-centric approach [1][2] - The company is focused on digital excellence and profitable growth through technological investments and collaborations [2][3] Company Overview - Intercorp Financial Services Inc. is a Peru-based financial services provider offering banking, insurance, wealth management, and payment services for retail and commercial clients [4] - The company has a long history, being incorporated in 1897, and is dedicated to enhancing financial well-being [4] Investment Activity - Lingohr Asset Management GmbH has recently acquired 40,535 shares of Intercorp Financial Services, making it the firm's fifth largest holding, valued at approximately $1,532,000 [1] Technological Focus - The company is investing in technology to enhance capacity, AI, user experience, and cybersecurity [3] - The CEO, Luis Felipe Castellanos Lopez-Torres, emphasizes the ambition to become the leading digital platform in Peru, focusing on key businesses and providing a comprehensive suite of services [3]

Core Viewpoint - The comparison between Intercorp Financial Services Inc. (IFS) and SoFi Technologies, Inc. (SOFI) indicates that IFS is currently a more attractive option for value investors based on various valuation metrics [1][6]. Valuation Metrics - IFS has a forward P/E ratio of 8.59, significantly lower than SOFI's forward P/E of 81.67, suggesting that IFS is undervalued relative to SOFI [5]. - The PEG ratio for IFS is 0.35, indicating a favorable valuation when considering expected earnings growth, while SOFI's PEG ratio stands at 3.09, suggesting overvaluation [5]. - IFS's P/B ratio is 1.45, which is more favorable compared to SOFI's P/B ratio of 4.14, further supporting the argument that IFS is the superior value option [6]. Earnings Outlook - Both IFS and SOFI hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3].

Core Insights - Intercorp Financial Services Inc. (IFS) is currently more attractive to value investors compared to Brookfield Asset Management (BAM) based on various valuation metrics and earnings estimate revisions [1][3][7] Valuation Metrics - IFS has a forward P/E ratio of 8.74, significantly lower than BAM's forward P/E of 38.52, indicating that IFS is undervalued relative to BAM [5] - The PEG ratio for IFS is 0.36, while BAM's PEG ratio is 2.20, suggesting that IFS has a better growth outlook relative to its valuation [5] - IFS has a P/B ratio of 1.42 compared to BAM's P/B of 11.16, further indicating that IFS is more attractively priced [6] Earnings Estimate Revisions - IFS has a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions, while BAM has a Zacks Rank of 4 (Sell), indicating a less favorable earnings outlook [3][7] - The stronger estimate revision activity for IFS suggests a more favorable earnings outlook compared to BAM [7]

Core Insights - The article highlights a mispriced investment opportunity in South America identified by leveraging expertise in the European banking sector [1] Group 1: Investment Opportunity - The coverage initiation report titled "Intercorp Financial Services Is Ready to Buy" suggests a favorable outlook for Intercorp Financial Services [1] - The analysis is aimed at buy-side hedge professionals focusing on fundamental, income-oriented, long-term investment strategies across global developed markets [1]

Financial Data and Key Metrics Changes - The company reported a net income of $580 million for Q2 2025, which is double the amount reported a year ago and 30% higher than the previous quarter [21] - Return on equity (ROE) reached approximately 21%, reflecting strong year-over-year recovery [15][21] - Cost of risk stood at 2.5%, which is 150 basis points lower than the previous year, indicating improved asset quality [15][33] - Total loans grew by 6% year over year, outperforming the system by a multiple of around 3x [29] Business Line Data and Key Metrics Changes - The Wealth Management segment, through Intelligo, saw assets under management grow by 14% year over year, reaching new highs [12][44] - Interseguro reported a 77% increase in written premiums year over year, driven by growth in private annuities and life insurance [15][44] - The commercial banking segment gained 90 basis points in market share, supported by a focus on mid-sized companies and synergies with EasyPay [10][29] Market Data and Key Metrics Changes - The Peruvian economy showed an accumulated growth of 3.1% as of May 2025, with private investment projected to grow by 5% this year [7][8] - Inflation remains under control, with the reference rate at 4.5%, contributing to a stable economic environment [17] - Consumer confidence is improving, supporting domestic consumption, although loan growth remains below 2% year over year [19][20] Company Strategy and Development Direction - The company aims to achieve digital excellence, focusing on becoming the leading digital platform in Peru with a comprehensive suite of services [12][13] - There is a strategic emphasis on strengthening the payment ecosystem through Plin and EasyPay, enhancing transactional volumes and customer engagement [31] - The company is investing in technology to support long-term growth, with a focus on resilience, user experience, and advanced analytics [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed moderate optimism about Peru's growth outlook, despite potential volatility from international contexts and upcoming elections [8][9] - The company expects a more dynamic second half for the financial system, with total loans projected to grow around 5% [20] - Management highlighted the importance of maintaining a cautious approach to ensure healthy growth in the consumer portfolio [28] Other Important Information - The company reported a 10% year-over-year growth in retail primary banking customers, indicating a strengthening of primary banking relationships [15][40] - The cost of funds remained stable, with an improvement of 40 basis points year over year due to a better funding mix [15][37] - The company is focused on sustainability, with a sustainable loan portfolio reaching $400 million and various initiatives to promote inclusive growth [52][53] Q&A Session Summary Question: NIM expectations and asset quality trends - Management expects NIM to improve in the second half of the year, driven by a shift in portfolio mix towards more consumer loans [62] - Cost of risk is expected to remain below guidance, with a slight increase anticipated as the consumer loan book resumes growth [65][66] Question: OpEx growth trends for the second half and next year - OpEx is expected to continue increasing, but at a slower rate compared to the current year, aligning more closely with business growth [76][77] - Investments in technology and analytics will contribute to OpEx growth, but the focus remains on maintaining efficiency [72][75]

Financial Data and Key Metrics Changes - The company reported a net income of $580 million for Q2 2025, which is double the amount reported a year ago and 30% higher than the previous quarter, resulting in a return on equity (ROE) of approximately 21% [16][22][55] - The cost of risk stood at 2.5%, which is 150 basis points lower than the previous year, indicating improved asset quality [16][34] - The cost of funds remained stable this quarter, showing an improvement of 40 basis points year over year, primarily due to a better funding mix [16][38] Business Line Data and Key Metrics Changes - Interbank showed solid momentum in commercial banking, gaining 90 basis points in market share within the mid-sized companies segment [11][30] - The Wealth Management segment through Intelligo delivered strong results, with assets under management growing 14% year over year [13][45] - Interseguro reported significant growth in private annuities and life insurance, with written premiums increasing by 77% year over year [16][48] Market Data and Key Metrics Changes - The Peruvian economy experienced an accumulated growth of 3.1% as of May 2025, driven by increased consumption and private investment projected to grow by 5% this year [8][9] - The Central Bank revised its internal demand forecast for 2025 from 3.5% to 4.4%, indicating strong private consumption and investment [20][19] - Total loans grew 6% year over year, outperforming the system by a multiple of around 3x, resulting in a gain of 30 basis points in total market share [30][52] Company Strategy and Development Direction - The company aims to achieve digital excellence for customers, focusing on becoming the leading digital platform in the country with a comprehensive suite of services [13][14] - There is a strategic focus on strengthening the payment ecosystem with Plin and EasyPay, enhancing transactional volumes and customer engagement [32][40] - The company is investing in technology to support long-term growth, with a focus on resilience, user experience, and advanced analytics [26][72] Management's Comments on Operating Environment and Future Outlook - Management expressed moderate optimism about Peru's growth outlook, despite potential volatility from international contexts and upcoming presidential elections [9][10] - The company expects an improvement in NIM in the second half of the year, driven by a recovery in the consumer loan portfolio [63][64] - The cost of risk is anticipated to remain below guidance, supporting profitability despite lower margins [52][66] Other Important Information - The company reported a 10% growth in retail primary banking customers over the last year, reflecting strengthened primary banking relationships [16][41] - The digital customer base increased, with retail digital customers reaching 83% and commercial digital clients at 74% [43][44] - The company continues to focus on sustainability, with a sustainable loan portfolio reaching $400 million and various initiatives supporting environmental and social goals [53][54] Q&A Session Summary Question: NIM expectations and asset quality trends - Management indicated that NIM is expected to improve in the second half of the year, with a potential close to the target of 5.4% as the consumer portfolio resumes growth [63][64] - The cost of risk is expected to increase slightly as the consumer loan book grows, with guidance around 3% for the year [66] - OpEx growth is anticipated to continue but at a slower rate, aligning more closely with inflation [76][78]