Intercorp Financial Services Inc. (NYSE:IFS) Q3 2022 Earnings Conference Call November 10, 2022 9:00 AM ET Company Participants Rafael Borja - Investor Relations Luis Felipe Castellanos - Chief Executive Officer Michela Casassa - Chief Financial Officer Gonzalo Basadre - Chief Executive Officer, Interseguro Bruno Ferreccio - Chief Executive Officer, Inteligo Carlos Tori - Executive Vice President, Payments Conference Call Participants Juan Recalde - Scotiabank Daniel Mora - Credicorp Capital Alonso Aramburu ...

Intercorp Financial Services 3Q22 Earnings Overview [Financial Highlights](index=1&type=section&id=Financial%20Highlights) IFS reported a 3Q22 net profit of S/ 613.4 million, significantly boosted by a one-off gain from the Izipay revaluation IFS 3Q22 Key Financial Metrics | Metric | 3Q22 | 2Q22 | 3Q21 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Profit (S/ million)** | 613.4 | 251.3 | 551.5 | +144.1% | +11.2% | | **Annualized ROE** | 26.5% | 11.1% | 23.1% | +15.4 p.p. | +3.4 p.p. | | **Recurring Net Profit (S/ million)** | 391.0 | - | - | - | - | | **Recurring Annualized ROE** | 17.1% | - | - | - | - | - 3Q22 earnings included a significant **one-time positive impact of S/ 223 million** from the revaluation of the Izipay acquisition[4](index=4&type=chunk)[7](index=7&type=chunk) - The company's performance showed **strong growth in payments**, solid core banking activity, and a **31% QoQ earnings growth** in the insurance segment[3](index=3&type=chunk) [Consolidated Financial Position](index=2&type=section&id=Consolidated%20Financial%20Position) Total assets reached S/ 88.7 billion, growing 3.5% QoQ, while total equity increased 5.5% to S/ 9.5 billion Statement of Financial Position Highlights (S/ million) | Account | 09/30/2022 | 06/30/2022 | 09/30/2021 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 88,707.3 | 85,702.5 | 92,386.6 | 3.5% | (4.0)% | | **Loans, net** | 47,128.8 | 46,024.9 | 44,037.3 | 2.4% | 7.0% | | **Total Liabilities** | 79,193.4 | 76,687.7 | 82,588.7 | 3.3% | (4.1)% | | **Total Equity, net** | 9,513.9 | 9,014.8 | 9,797.9 | 5.5% | (2.9)% | [Consolidated Profit & Loss Analysis](index=3&type=section&id=Consolidated%20Profit%20%26%20Loss%20Analysis) Profit growth was driven by the Izipay revaluation, higher Net Interest Income, and increased fee income - **QoQ Performance:** Profit grew more than two-fold, driven by a recovery in 'Other Income' across all businesses, higher NII in Banking and Wealth Management, and increased fee income from Banking and Payments[11](index=11&type=chunk) - **YoY Performance:** Profit increased 11.2%, primarily due to a **20.5% growth in NII** and a **58.9% rise in net fee income** (benefiting from the Izipay consolidation)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) P&L Statement Highlights (S/ million) | Account | 3Q22 | 2Q22 | 3Q21 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | 1,084.2 | 1,031.8 | 900.0 | 5.1% | 20.5% | | **Impairment Loss on Loans** | (209.6) | (193.3) | (112.1) | 8.5% | 87.0% | | **Net Fee Income** | 316.3 | 293.6 | 199.1 | 7.7% | 58.9% | | **Other Income** | 306.4 | (4.8) | 377.1 | n.m. | (18.8)% | | **Other Expenses** | (687.6) | (670.4) | (585.6) | 2.6% | 17.4% | | **Profit for the period** | 613.4 | 251.3 | 551.5 | n.m. | 11.2% | [Contribution by Business Segment](index=5&type=section&id=Contribution%20by%20Business%20Segment) The Banking segment was the largest profit contributor, while Insurance recovered strongly and Wealth Management improved but remained at a loss Profit Contribution by Business (S/ million) | Segment | 3Q22 | 2Q22 | 3Q21 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Banking** | 365.6 | 321.2 | 299.1 | 13.8% | 22.2% | | **Insurance** | 100.5 | 77.0 | 13.4 | 30.6% | n.m. | | **Wealth Management** | (41.0) | (120.3) | 183.7 | (65.9)% | n.m. | | **Payments** | 11.7 | 12.6 | — | (6.4)% | n.m. | | **Corporate & eliminations** | 176.7 | (39.1) | 55.2 | n.m. | n.m. | Segment Performance Analysis [Banking (Interbank)](index=6&type=section&id=Banking%20(Interbank)) Interbank delivered strong profit growth driven by higher Net Interest Income, solid loan growth, and improved efficiency [Financial Performance](index=6&type=section&id=Interbank%20Financial%20Performance) Interbank 3Q22 Financial Highlights | Metric | 3Q22 | 2Q22 | 3Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period (S/ million)** | 365.6 | 321.2 | 299.1 | | **ROE** | 21.4% | 19.4% | 18.6% | | **Efficiency Ratio** | 40.1% | 42.3% | 47.1% | | **NIM** | 5.0% | 4.9% | 4.0% | - Quarterly profit growth was mainly attributed to a **S/ 51.5 million increase in net interest income** and a S/ 22.9 million rise in net fee income[31](index=31&type=chunk) [Loan Portfolio](index=7&type=section&id=Interbank%20Loan%20Portfolio) Loan Portfolio Growth (S/ million) | Loan Type | 09/30/2022 | 06/30/2022 | 09/30/2021 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Retail Loans** | 22,405.6 | 22,001.5 | 19,281.7 | 1.8% | 16.2% | | **Commercial Loans** | 20,640.4 | 20,384.8 | 21,028.8 | 1.3% | (1.8)% | | **Total Performing Loans** | 43,046.0 | 42,386.3 | 40,310.5 | 1.6% | 6.8% | - Excluding the effect of the maturing Reactiva Peru Program loans, total performing loans would have grown **3.4% QoQ and 15.2% YoY**[44](index=44&type=chunk)[47](index=47&type=chunk) - Retail loan growth was driven by a **2.3% QoQ increase in mortgages** and a **1.5% QoQ increase in consumer loans** (credit cards and cash loans)[45](index=45&type=chunk) [Funding Structure](index=8&type=section&id=Interbank%20Funding%20Structure) - Total funding grew **4.4% QoQ to S/ 60.2 billion**, driven by a **9.4% increase in retail deposits**[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) Deposits by Customer (S/ million) | Deposit Type | 09/30/2022 | 06/30/2022 | QoQ Change | | :--- | :--- | :--- | :--- | | **Retail** | 23,726.1 | 21,686.3 | 9.4% | | **Commercial** | 16,278.2 | 16,298.1 | (0.1)% | | **Institutional** | 5,119.7 | 5,222.6 | (2.0)% | [Net Interest Income](index=9&type=section&id=Interbank%20Net%20Interest%20Income) - **Net Interest Margin (NIM) expanded to 5.0%**, up 10 bps QoQ and 100 bps YoY, driven by higher asset yields that outpaced the rise in funding costs[69](index=69&type=chunk)[85](index=85&type=chunk)[95](index=95&type=chunk) - The average yield on assets increased by **70 bps QoQ to 7.5%**, while the average cost of funding rose **60 bps QoQ to 2.8%**[71](index=71&type=chunk)[73](index=73&type=chunk)[84](index=84&type=chunk) [Asset Quality](index=11&type=section&id=Interbank%20Asset%20Quality) Asset Quality Ratios | Ratio | 3Q22 | 2Q22 | 3Q21 | | :--- | :--- | :--- | :--- | | **Cost of Risk (annualized)** | 1.9% | 1.8% | 1.1% | | **Stage 3 NPL Ratio** | 2.5% | 2.6% | 2.7% | | **S3 NPL Coverage Ratio** | 182.4% | 185.9% | 210.2% | - Impairment loss on loans increased **8.4% QoQ and 90.6% YoY**, driven by higher provisions in commercial and retail portfolios[96](index=96&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [Regulatory Capital](index=13&type=section&id=Interbank%20Regulatory%20Capital) Capital Ratios | Ratio | 09/30/2022 | 06/30/2022 | 09/30/2021 | | :--- | :--- | :--- | :--- | | **Total Capital Ratio** | 15.2% | 15.2% | 16.3% | | **CET1 Ratio** | 11.6% | 11.1% | 12.0% | - The total capital ratio remained stable QoQ at **15.2%**, well above the risk-adjusted minimum requirement of 9.6%[115](index=115&type=chunk)[117](index=117&type=chunk)[121](index=121&type=chunk) [Insurance (Interseguro)](index=15&type=section&id=Insurance%20(Interseguro)) Interseguro's profits surged due to improved underwriting results, premium growth, and strong investment performance [Financial Performance](index=15&type=section&id=Interseguro%20Financial%20Performance) Interseguro 3Q22 Financial Highlights | Metric | 3Q22 | 2Q22 | 3Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period (S/ million)** | 100.5 | 77.0 | 13.4 | | **ROE** | 46.8% | 31.6% | 5.3% | - The quarterly profit growth was driven by an **S/ 18.5 million improvement in the insurance underwriting result** and higher other income[125](index=125&type=chunk) [Underwriting Results](index=17&type=section&id=Interseguro%20Underwriting%20Results) - Total premiums earned minus claims and benefits improved by **S/ 18.5 million QoQ** and **S/ 45.5 million YoY**, reaching S/ -42.2 million[140](index=140&type=chunk) - Net premiums grew **16.0% QoQ to S/ 271.5 million**, mainly due to a **21.4% increase in annuities** and growth in retail and individual life premiums[143](index=143&type=chunk)[144](index=144&type=chunk) - Net claims and benefits incurred remained stable QoQ and **decreased 6.5% YoY** to S/ 218.6 million[152](index=152&type=chunk) [Wealth Management (Inteligo)](index=19&type=section&id=Wealth%20Management%20(Inteligo)) Inteligo reported a net loss due to mark-to-market losses on its proprietary portfolio amid adverse market conditions Inteligo 3Q22 Financial Highlights (S/ million) | Metric | 3Q22 | 2Q22 | 3Q21 | | :--- | :--- | :--- | :--- | | **Profit for the period** | (41.0) | (120.3) | 183.7 | | **Net Interest Income** | 30.9 | 24.0 | 26.1 | | **Net Fee Income** | 40.3 | 44.8 | 50.4 | | **Other Income (Loss)** | (68.1) | (147.0) | 146.6 | - The quarterly performance improved due to a **lower mark-to-market loss** on the proprietary portfolio, though the result remained negative[161](index=161&type=chunk)[178](index=178&type=chunk) - **Assets Under Management (AUM) reached S/ 21,992.2 million**, up 2.7% QoQ but down 6.8% YoY, affected by market valuation and outflows in mutual funds[163](index=163&type=chunk)[167](index=167&type=chunk) [Payments (Izipay)](index=22&type=section&id=Payments%20(Izipay)) Izipay's profitability was impacted by higher service and administrative costs despite strong revenue growth Izipay 3Q22 Financial Highlights (S/ million) | Metric | 3Q22 | 2Q22 | 3Q21 (Proforma) | | :--- | :--- | :--- | :--- | | **Profit for the period** | 11.7 | 12.6 | 15.2 | | **ROE** | 23.6% | 26.9% | 41.2% | | **Net Fee Income** | 84.9 | 81.0 | 76.5 | - Income from payments acquirer grew **11.0% QoQ and 44.3% YoY**, driven by a **65% YoY increase in the number of merchants** and a **41% YoY rise in transaction volumes**[184](index=184&type=chunk)[187](index=187&type=chunk) - Profitability was impacted by a **74.6% YoY increase in Service Costs** and a **22.2% YoY rise in Other Expenses**, reflecting higher business activity and investments in customer acquisition[184](index=184&type=chunk)[187](index=187&type=chunk)[193](index=193&type=chunk) Interim Consolidated Financial Statements and Notes [Business Activity and Significant Events](index=32&type=section&id=Business%20Activity%20and%20Significant%20Events) Key events include the full acquisition of Izipay, resulting in a one-time gain, and ongoing government economic programs - In April 2022, IFS acquired the remaining 50% of Procesos de Medios de Pago S.A. (Izipay), **gaining 100% control**[211](index=211&type=chunk)[219](index=219&type=chunk) - The Izipay acquisition was accounted for as a 'Step acquisition', resulting in a revaluation of the previously held stake and a **gain of S/ 222.5 million**, recorded in 'Other income'[220](index=220&type=chunk)[221](index=221&type=chunk) - As of September 30, 2022, the outstanding balance of loans under the government-guaranteed 'Reactiva Peru' program was **S/ 3.01 billion**[217](index=217&type=chunk) [Financial Risk Management](index=74&type=section&id=Financial%20Risk%20Management) The Group manages credit, market, liquidity, and other financial risks through specialized subsidiary-level structures - The Group's primary financial risks are **credit, market, liquidity, insurance, and real estate risk**, managed by each subsidiary under the oversight of IFS[339](index=339&type=chunk)[340](index=340&type=chunk) - As of September 30, 2022, the Group had a **net long monetary position in US Dollars of S/ 221.0 million** after accounting for derivative positions[349](index=349&type=chunk) [Fair Value Measurement](index=77&type=section&id=Fair%20Value%20Measurement) The Group held S/ 22.1 billion in financial assets at fair value, primarily classified as Level 1 and Level 2 Fair Value Hierarchy of Financial Assets (S/ million, as of 09/30/2022) | Level | Financial Assets at Fair Value | | :--- | :--- | | **Level 1** | 9,115.2 | | **Level 2** | 11,933.7 | | **Level 3** | 1,043.9 | | **Total** | 22,092.7 | - **Level 3 financial instruments**, valued using unobservable inputs, decreased from S/ 1.13 billion at the start of the year to S/ 1.04 billion, mainly due to sales and net losses[354](index=354&type=chunk)

Financial Data and Key Metrics Changes - Intercorp Financial Services reported earnings of $251 million for Q2 2022 and $655 million for the first half of the year, impacted by a loss in the investment portfolio of $147 million in Q2 and $171 million in the first half [19][20] - The quarterly Return on Equity (ROE) stands at 11%, with a first half ROE of 14.2%, affected by the investment portfolio losses [20][63] - The banking, insurance, and payments segments reported strong ROEs of 19.4%, 31.6%, and 26.9% respectively for the quarter [20] Business Line Data and Key Metrics Changes - Banking showed double-digit growth in net interest income and fees, with a client base growth of nearly 20% year-over-year [21] - Insurance profits nearly doubled quarter-over-quarter, with a 27% increase in interest income [22] - The payments segment, particularly Izipay, demonstrated profitability with a 27% ROE for the quarter [23] Market Data and Key Metrics Changes - The Central Bank increased the policy rate by 50 basis points to 6.5%, with inflation decreasing slightly to 8.7% in July [12][34] - The exchange rate fluctuated, reaching PEN3.83 per dollar, while the overall economic growth for June was reported at 3.4% [11][34] Company Strategy and Development Direction - The company is focused on a two-tier digital strategy to enhance growth and operational efficiency [16][32] - There is an emphasis on sustainability initiatives and financial inclusion for Peruvians [60][61] - The payments ecosystem is being developed to leverage synergies among various digital payment platforms [59] Management's Comments on Operating Environment and Future Outlook - The management highlighted a challenging macroeconomic environment with high inflation and political uncertainty affecting consumer confidence [10][9] - Despite these challenges, the company remains resilient, with expectations for recovery in investment performance and continued growth in core banking operations [13][14] Other Important Information - The company has seen a significant reduction in the number of branches, optimizing its operational footprint by over 40% since 2016 [29] - The capital position remains strong, with a Core Tier 1 ratio of 11.1% and a total capital ratio of 15.2% [31][62] Q&A Session Summary Question: What was behind the loss in the wealth management business? - The loss was primarily market-related, affecting both equity and fixed income investments due to significant volatility in the markets [73][74] Question: What are the expectations for asset quality and MPL ratios? - The company anticipates a return to pre-pandemic MPL levels by year-end or early next year, with ongoing adjustments to underwriting standards [80][82] Question: What is the profitability level of digital channels like Izipay, Plin, and Tunki? - Izipay is already profitable, while Tunki is not yet profitable but has low acquisition costs and is growing steadily [84][90] Question: What are the growth expectations for the payments business? - The payments business is expected to continue growing, with a focus on increasing transaction volumes and expanding services offered to merchants [102] Question: What is driving the slower growth in payroll loans compared to other consumer loans? - The slower growth is attributed to disciplined pricing strategies amidst rising costs of funds and a focus on sustainable growth [107][110] Question: What are the expectations for risk-adjusted NIM for the rest of the year? - The company expects NIM to continue improving but at a more moderate pace, with risk-adjusted NIM likely stabilizing due to mixed influences [117][118]

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 ☐ ...