Financial Performance Highlights - IFS's quarterly net profit in 2Q25 reached S/ 579.6 million, a 29.9% increase QoQ [207] - IFS achieved a ROE of 20.7% in 2Q25 [34] - Banking sector ROE was 11.1% in 2Q25 [35] - Wealth Management saw a significant ROE increase to 43.9% in 2Q25, approximately 20x YoY [35] - Insurance sector ROE was 58.3% in 2Q25 [35] Business Trends and Growth - System loan book as of June 2025 showed a QoQ increase of 3.1% and a YoY increase of 1.7% [31] - Total commercial loans increased by 4.1% QoQ and 9.8% YoY [202] - Total retail loans increased by 1.1% QoQ and 1.2% YoY [202] - Total deposits increased by 2.7% QoQ and 7.4% YoY, reaching S/ 52,036.0 million [204] Key Ratios and Indicators - IFS's cost-to-income (C/I) ratio was 35.9% in 2Q25 [45] - Banking sector's C/I ratio was 42.3% in 2Q25 [49] - Banking sector's NIM was 5.1% [136] - The cost of risk for the banking sector is at 2.5% [139]

Financial Performance - Net income for Intercorp Financial Services in Q2 2025 was S/ 579.6 million, a 29.9% increase QoQ and a significant increase of S/ 293.4 million YoY[4]. - The company achieved an annualized ROE of 20.7% in Q2 2025, up from 16.3% in Q1 2025 and 11.2% in Q2 2024[4][25]. - Net profit for the period ended June 30, 2025, was S/ 1,025.7 million, compared to S/ 427.3 million in the same period of 2024[160]. - Earnings per share attributable to IFS's shareholders increased to S/ 9.058 from S/ 3.710 YoY[160]. - Total comprehensive income for the period, net of income tax, was S/ 1,122.9 million, compared to S/ 628.8 million in the prior year[161]. - The return on equity (ROE) for Inteligo stood at 43.9% in 2Q25, significantly higher than 14.2% in 1Q25[125]. Income and Revenue - Other income surged by S/ 211.7 million YoY, primarily due to higher mark-to-market valuations in the wealth management business[12][13]. - Commission income increased by 7.8% QoQ and 17.0% YoY, driven by higher transaction volumes in the banking business[3][16]. - Net fee income from financial services increased by S/ 17.9 million YoY, or 9.2%, mainly due to higher commissions from credit card services and banking services[85]. - Other income increased by S/ 19.0 million YoY, primarily driven by higher net gains on financial investments and property sales[89]. - Total other income for 2Q25 was S/ 147.5 million, a decrease of 5.8% QoQ but an increase of 14.8% YoY[91]. Asset Management - Assets under management (AuMs) grew by 3.5% QoQ and 13.9% YoY, indicating strong performance in wealth management[3]. - Inteligo's net profit reached S/ 117.0 million in 2Q25, an increase of S/ 79.5 million QoQ and S/ 110.7 million YoY, primarily due to mark-to-market profits on proprietary portfolio investments[122]. - Assets under management (AUM) grew by 3.5% QoQ to US$ 7,766 million and by 13.9% YoY, attributed to inflows in mutual funds and private wealth management[128][129]. Loan and Deposit Growth - Total performing loans rose by 2.5% QoQ and 5.2% YoY, totaling S/ 48,282.0 million, driven by a 4.1% increase in commercial loans and a 1.1% increase in retail loans[32]. - Total deposits increased by 2.7% QoQ and 7.4% YoY, reaching S/ 52,036.0 million, with commercial deposits rising by 7.9%[50]. - Direct loans increased to S/ 40,201,836,000 as of June 30, 2025, up from S/ 38,456,682,000 at the end of 2024, reflecting a growth of approximately 4.5%[199]. - Total loans, net, reached S/ 50,415,084,000 as of June 30, 2025, compared to S/ 49,229,448,000 at the end of 2024, indicating a year-over-year increase of about 2.4%[199]. Risk and Loan Quality - The cost of risk (CoR) improved to 2.5%, down 150 basis points YoY, reflecting better payment behavior and a shift towards lower-risk credit segments[3]. - The proportion of past due loans decreased by 19.3% YoY, indicating improved loan quality[32]. - The S3 non-performing loan (NPL) ratio remained stable at 2.5%, with a cost of risk at 2.5% in 2Q25, lower than 2.8% in 1Q25[76]. - The impairment loss on loans, net of recoveries, was S/(000) 651,278 for the first half of 2025, down from S/(000) 1,023,253 in 2024, indicating improved loan performance[164]. Capital and Funding - The bank's total capital ratio stood at 16.9% as of 2Q25, down from 17.2% in 1Q25 but up from 15.0% in 2Q24[95]. - Risk-weighted assets (RWA) increased by 4.6% QoQ, mainly due to higher capital requirements for credit risk resulting from an increase in loans[97]. - The bank's total funding base increased by 2.7% QoQ, with deposits and obligations accounting for 80.4% of total funding[43]. - The average cost of funding remained stable at 3.2% in 2Q25 compared to 1Q25, with a net interest margin of 5.1%[65]. Digital Transformation and Customer Engagement - Digital customer base grew by 5.2% YoY, with retail digital clients increasing from 80% to 83%[145]. - Plin active users grew by 13% YoY, with transaction volumes increasing by 1.5x YoY, while Izipay transaction volumes rose by 12% YoY[146]. - The share of digital self-service in insurance reached 68.8%, up from 65.8% in 2Q24, indicating stronger online channel engagement[153]. - In wealth management, digital users of Interfondos accounted for 28.8% of total users, up from 22.7% in 2Q24[155]. Financial Position - Total assets as of June 30, 2025, amounted to S/ 97,592.3 million, up from S/ 95,503.8 million at the end of 2024[159]. - The company’s cash and cash equivalents at the end of the period were S/(000) 12,173,002, compared to S/(000) 9,829,024 at the end of June 2024, indicating strong liquidity[165]. - Financial investments totaled S/27,313,781 as of June 30, 2025, an increase of 3.47% from S/26,397,552 as of December 31, 2024[192].

Core Insights - Intercorp Financial Services Inc. (IFS) is expected to report second-quarter 2025 results on August 11, with anticipated year-over-year earnings growth driven by higher revenues despite increased provisions for credit losses and expenses [1][10]. Revenue Factors - A significant portion of IFS's revenue comes from spread income, and a recent 25 basis point cut in Peru's benchmark interest rate to 4.50% is expected to support loan demand [3]. - The company is likely to have experienced a decline in deposit costs, contributing to an increase in net interest and similar income, as well as an expansion in net interest margin due to lower deposit repricing [4]. - Strong asset inflows from a decent equity market performance are expected to enhance IFS's assets under management, benefiting its wealth management operations and increasing net fee income from banking services and credit card activity [5][10]. Expense Factors - Higher salaries, employee benefits, and administrative expenses are anticipated to keep the expense base elevated, alongside increased costs related to the company's digitization efforts [6][10]. Earnings Expectations - The consensus estimate for IFS's earnings is $1.07 per share, reflecting a 62.1% increase from the previous year [2][10]. - The company's earnings surprise history shows it has surpassed the Zacks Consensus Estimate in four of the last five quarters, with an average beat of 17.26% [2]. Zacks Model Insights - The quantitative model indicates that IFS lacks the necessary combination of positive Earnings ESP and a Zacks Rank better than 3 (Hold) for a conclusive prediction of an earnings beat this time [7][8].

Core Viewpoint - Intercorp Financial Services Inc. (IFS) is set to host its Second Quarter 2025 earnings conference call on August 12, 2025, following the release of its financial results on August 11, 2025 [1][2]. Group 1: Earnings Conference Call Details - The conference call will feature key executives including Mr. Luis Felipe Castellanos (CEO), Ms. Michela Casassa (CFO), and other CEOs from its subsidiaries [2]. - The call can be accessed via specific phone numbers for both U.S. and international participants, with a dedicated conference ID [2]. - A live video webcast will be available, and a replay will be accessible shortly after the call concludes [2]. Group 2: Corporate Disclosure Policy - IFS will enter a Quiet Period starting July 20, 2025, which will last until the financial results are published, during which no financial information will be disclosed [3]. Group 3: Company Overview - Intercorp Financial Services Inc. is incorporated in Panama and listed on both the Lima Stock Exchange and the New York Stock Exchange [4]. - The company is a leading provider of financial services in Peru, with main subsidiaries including Interbank, Interseguro, and Inteligo [4]. - Interbank offers general banking services, Interseguro provides various insurance products, and Inteligo focuses on wealth management and brokerage services [4].

Core Viewpoint - Intercorp Financial Services (IFS) is highlighted as a strong investment opportunity with a Zacks Rank 1 (Strong Buy) and a notable increase in earnings estimates [1]. Company Summary - Intercorp Financial Services provides financial products and services and has seen a 2.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1]. - The company has a price-to-earnings ratio (P/E) of 8.74, significantly lower than the industry average of 25, indicating strong value characteristics [1]. - Intercorp Financial Services possesses a Value Score of A, further emphasizing its attractiveness to investors [1].

Core Viewpoint - The article compares Intercorp Financial Services Inc. (IFS) and American Express (AXP) to determine which stock is more attractive to value investors [1]. Group 1: Company Rankings and Outlook - IFS currently holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to AXP, which has a Zacks Rank of 3 (Hold) [3]. - The improvement in earnings outlook for IFS is noted to be stronger than that of AXP [3]. Group 2: Valuation Metrics - IFS has a forward P/E ratio of 8.71, significantly lower than AXP's forward P/E of 20.86, suggesting that IFS may be undervalued [5]. - The PEG ratio for IFS is 0.35, while AXP's PEG ratio is 1.54, indicating that IFS has a better valuation relative to its expected earnings growth [5]. - IFS has a P/B ratio of 1.46 compared to AXP's P/B of 7.12, further supporting the notion that IFS is undervalued [6]. - These metrics contribute to IFS earning a Value grade of A, while AXP has a Value grade of C, making IFS a more attractive option for value investors [6].

Core Viewpoint - Intercorp Financial Services Inc. (IFS) has shown strong stock performance, with a 9.3% increase over the past month and a 28.9% rise since the beginning of the year, outperforming both the Zacks Finance sector and the Zacks Financial - Miscellaneous Services industry [1][2]. Performance Metrics - The stock reached a new 52-week high of $38.3 and has consistently beaten earnings estimates, reporting an EPS of $1.06 against a consensus estimate of $0.89 in its last earnings report [1][2]. - The company has a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7][8]. Valuation Metrics - Intercorp Financial Services has a Value Score of A, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of A [5][6]. - The stock trades at 8.7X current fiscal year EPS estimates, below the peer industry average of 11.6X, and has a PEG ratio of 0.35, indicating strong value potential [6]. Competitive Landscape - Pagaya Technologies Ltd. (PGY) is a notable peer, holding a Zacks Rank of 1 (Strong Buy) and showing strong earnings performance, with a 72.5% beat on consensus estimates last quarter [9][10]. - Despite the Financial - Miscellaneous Services industry ranking in the bottom 57% of all industries, both IFS and PGY exhibit positive growth prospects [11][12].

Core Viewpoint - Intercorp Financial Services Inc. (IFS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating system is beneficial for investors as it focuses on objective earnings estimate revisions rather than subjective analyst ratings [3][10]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [5][7]. - Rising earnings estimates for Intercorp Financial Services suggest an improvement in the company's underlying business, which could lead to higher stock prices [6][11]. Performance of Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Intercorp Financial Services to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns [10][11]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Intercorp Financial Services is expected to earn $4.34 per share, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.6% over the past three months [9].

Core Viewpoint - The comparison between Intercorp Financial Services Inc. (IFS) and American Express (AXP) indicates that IFS presents a better value opportunity for investors at this time [1]. Group 1: Zacks Rank and Earnings Outlook - IFS has a Zacks Rank of 2 (Buy), while AXP has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for IFS [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, indicating that IFS is likely experiencing a more significant improvement in its earnings outlook compared to AXP [3]. Group 2: Valuation Metrics - IFS has a forward P/E ratio of 8.51, significantly lower than AXP's forward P/E of 19.60, indicating that IFS may be undervalued relative to AXP [5]. - The PEG ratio for IFS is 0.35, while AXP's PEG ratio is 1.45, further suggesting that IFS is a more attractive investment based on expected earnings growth [5]. - IFS has a P/B ratio of 1.43 compared to AXP's P/B of 6.69, reinforcing the notion that IFS is undervalued [6]. - These valuation metrics contribute to IFS earning a Value grade of A, while AXP has a Value grade of C, highlighting IFS as the superior value option [6].

Company Performance - Intercorp Financial Services Inc. (IFS) shares have increased by 3% over the past month and reached a new 52-week high of $37.36, with a year-to-date gain of 26% compared to the Zacks Finance sector's 5.8% and the Financial - Miscellaneous Services industry's -4.3% return [1] - The company has consistently exceeded earnings expectations, reporting EPS of $1.06 against a consensus estimate of $0.89 in its last earnings report on May 8, 2025 [2] Valuation Metrics - IFS trades at 8.5X current fiscal year EPS estimates, below the peer industry average of 11.2X, and at 9.3X trailing cash flow compared to the peer group's average of 11.1X [6] - The stock has a PEG ratio of 0.35, indicating it is not among the top stocks from a value perspective [6] Zacks Rank and Style Scores - IFS holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [7] - The company has a Value Score of A, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of A [5][8] Industry Comparison - Pagaya Technologies Ltd. (PGY) is a notable peer with a Zacks Rank of 1 (Strong Buy) and has shown strong earnings performance, beating consensus estimates by 72.50% last quarter [9][10] - Despite the Financial - Miscellaneous Services industry ranking in the bottom 55% of all industries, both IFS and PGY exhibit positive fundamental conditions and potential tailwinds [11]