Earnings Presentation 1Q23 Results 2 impacted by CoR and investment results +3% QoQ | -20% YoY 1Q23 recurring earnings of S/ 308 mm impacted by CoR and investment results • Solid capitalization levels after Basel III changes and dividend distribution at banking Insurance Payments | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------|-------|-------|-------|-----------|------------|-----------|-------|----------------|-------|----------| | | | | | | | | | | | | | | 22.4% | 16.7% | ...

Financial Performance - Intercorp Financial Services reported a net profit of S/ 266.9 million in 1Q23, a decrease of 30.5% QoQ and 44.1% YoY[6]. - Interbank's net profit for 1Q23 was S/ 250.2 million, a decrease of 31.4% QoQ and 22.4% YoY, primarily due to an increase in impairment loss on loans of S/ 89.5 million[35]. - The net profit for the period ended March 31, 2023, was S/(000) 266,914, a decrease of 44.1% compared to S/(000) 477,845 in the same period last year[182]. - The net profit for the period was S/(000) 265,093, compared to S/(000) 475,390 in the previous period[184]. - Net profit for the period decreased to S/266.914 million in Q1 2023 from S/477.845 million in Q1 2022, representing a decline of 44.1%[187]. Revenue and Income - Recurring revenues grew 21% YoY, with banking NIM reaching 5.5%[3]. - Net fee income from financial services surged 54.9% YoY, reflecting strong performance across various segments[22]. - Net fee income from financial services was S/ 39.6 million in 1Q23, an increase of S/ 2.2 million, or 5.9% QoQ, mainly driven by higher fees from funds management[158]. - Net interest and similar income grew by 14.9% YoY, attributed to a 37.1% increase in interest and similar income, despite a more than two-fold increase in interest and similar expense[82]. - The payments acquirer segment generated S/ 170.3 million in income in 1Q23, a decrease of 5.9% QoQ but an increase of 24.0% YoY[174]. Impairment and Losses - Impairment loss on loans increased by S/ 218.0 million YoY, primarily due to higher provisions in the retail and commercial loan books[21]. - The impairment loss on loans increased by 32.2% QoQ to S/ 367.7 million, significantly impacting overall profitability[34]. - Impairment loss on loans, net of recoveries increased by 32.2% QoQ and more than two-fold YoY, with an annualized ratio of impairment loss on loans to average loans at 3.2% in 1Q23, up from 2.5% in 4Q22 and 1.4% in 1Q22[94][96]. - The company reported an impairment loss on loans of S/(000) 367,611 for Q1 2023, significantly higher than S/(000) 149,595 in Q1 2022[181]. Assets and Liabilities - Total assets increased by 0.6% YoY to S/ 88,016.2 million as of March 31, 2023[5]. - Total liabilities increased by 1.0% YoY to S/ 78,879.7 million, with deposits and obligations rising by 2.7%[5]. - The equity attributable to IFS's shareholders decreased to S/(000) 9,084,625 as of March 31, 2023, from S/(000) 9,348,528 at the end of 2022[180]. - The balance of rescheduled loans as of March 31, 2023, was S/5,069.584 million, slightly up from S/5,048.978 million as of December 31, 2022[200]. Capital and Ratios - The company maintained solid capitalization levels after Basel III changes, with an annualized ROAE of 11.5% in 1Q23[8]. - The ratio of regulatory capital to risk-weighted assets was 15.2% as of March 31, 2023, slightly above the 15.1% reported at the end of 2022, but below the 15.5% registered a year earlier[110]. - Total regulatory capital decreased by 5.3% QoQ, attributed to dividend distributions and unrealized losses on investments, while risk-weighted assets decreased by 5.9% QoQ[112][111]. Insurance Performance - Insurance earnings were S/ 31.3 million in 1Q23, with a ROE of 40.5% post-IFRS17 adoption[2]. - Interseguro's profits reached S/ 31.3 million in 1Q23, an increase of S/ 17.8 million QoQ, but a decrease of S/ 81.9 million YoY, primarily due to improvements in insurance results[121]. - Insurance income was S/ 275.5 million in 1Q23, an increase of S/ 29.1 million, or 11.8% QoQ, but a decrease of S/ 30.6 million, or 10.0% YoY[138]. - Insurance expenses were S/ 366.8 million in 1Q23, a decrease of S/ 30.6 million, or 7.7% QoQ, but an increase of S/ 48.8 million, or 15.3% YoY[141]. Cash Flow and Investments - Net cash provided by operating activities was S/2,637 million in Q1 2023, a turnaround from a net cash used of S/(1,854.830) million in Q1 2022[188]. - Cash and cash equivalents at the end of the period decreased to S/11,929.297 million in Q1 2023 from S/13,286.242 million in Q1 2022, a decline of 10.2%[188]. - The purchase of investments at fair value through other comprehensive income and at amortized cost increased to S/(1,782.926) million in Q1 2023 from S/(992.876) million in Q1 2022, a rise of 79.5%[188]. Other Key Metrics - The effective tax rate rose from 16.6% in 1Q22 to 28.1% in 1Q23, influenced by a lower translation result and higher rates in the banking business[24]. - The efficiency ratio improved to 39.1% in 1Q23 from 41.7% in 1Q22, and would have been 36.9% excluding the impairment on interest on loans of S/ 70.0 million[107]. - The average cost of funding increased by 180 basis points, from 1.8% in 1Q22 to 3.6% in 1Q23, resulting in a net interest margin of 5.1% in 1Q23, which is 60 basis points higher than the 4.5% reported in 1Q22[93].

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the filing of Form 6-K by Intercorp Financial Services Inc. and provides investor relations contact information [General Filing Information](index=1&type=section&id=General%20Filing%20Information) This section details the filing of Form 6-K by Intercorp Financial Services Inc. on April 25, 2023, indicating its status as a foreign private issuer - Intercorp Financial Services Inc. filed Form 6-K on April 25, 2023, as a foreign private issuer[1](index=1&type=chunk) [Investor Relations Contact](index=2&type=section&id=Investor%20Relations%20Contact) Inquiries regarding the filing can be directed to Ernesto Ferrero, IFS's Investor Relations Officer - Ernesto Ferrero is the Investor Relations Officer for inquiries, reachable at eferrerom@intercorp.com.pe[4](index=4&type=chunk) [Material Event Notification](index=2&type=section&id=Material%20Event%20Notification) This section covers the board's approval and filing of the 2022 Annual Report and its accessibility to the public [Board Approval and Filing of 2022 Annual Report](index=2&type=section&id=Board%20Approval%20and%20Filing%20of%202022%20Annual%20Report) IFS's Board of Directors unanimously approved the 2022 Annual Report on Form 20-F, its filing with the SEC, and the accompanying audited consolidated financial statements prepared under PCAOB rules - IFS's Board of Directors unanimously approved the 2022 Annual Report on Form 20-F, its filing, and the 2022 audited consolidated financial statements prepared under PCAOB rules and auditing standards on April 24, 2023[2](index=2&type=chunk)[5](index=5&type=chunk) [Access to 2022 Annual Report](index=2&type=section&id=Access%20to%202022%20Annual%20Report) The 2022 Annual Report is accessible on the SEC's website (www.sec.gov) and IFS's investor relations section (www.ifs.com.pe) Shareholders can also request a free hard copy - The 2022 Annual Report can be accessed on the SEC's website (www.sec.gov) and IFS's website (www.ifs.com.pe) under the 'Investor Relations' section[2](index=2&type=chunk) - Shareholders may receive a hard copy of the 2022 Annual Report, including audited consolidated financial statements, free of charge by requesting it from IFS' Investor Relations Office[2](index=2&type=chunk) - URLs mentioned are intended to be inactive textual references only and are not incorporated into this Form 6-K[3](index=3&type=chunk) [Signatures](index=3&type=section&id=Signatures) This section confirms the authorization and signatory details for the report [Authorization and Signatory](index=3&type=section&id=Authorization%20and%20Signatory) The report was duly signed on behalf of Intercorp Financial Services Inc. by Michela Casassa Ramat, Chief Financial Officer, on April 25, 2023, confirming authorization - The report was signed on behalf of Intercorp Financial Services Inc. by Michela Casassa Ramat, Chief Financial Officer, on April 25, 2023[7](index=7&type=chunk)[9](index=9&type=chunk)

Table of Contents 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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

Key messages up 3% QoQ & 53% YoY 0% QoQ | +15% YoY IFS net profit +19% YoY +7% YoY quarterly efficiency levels improve to 34.8% C/I 45.3%(1) 37.5%(3) 34.8% 42.2% 40.1% 37.9% +8% QoQ | +3% YoY Banking System TCR Insurance 24.4% 19.1% 20.4% 4Q21 3Q22 4Q22 8.0% Reg. min. Financial highlights Guidance 4 Results by segment Financial highlights 1) IFS' ROE in FY21 would have resulted in 17.9%, when excluding gains in other income of S/ 136 million in wealth management 2) IFS' ROE in FY22 would have resulted in 17 ...

Financial Data and Key Metrics Changes - Reported earnings for Q4 2022 reached PEN 403 million, a 3% increase quarter-on-quarter and over 50% growth year-on-year [11] - Full-year reported earnings totaled PEN 1,671 million, or PEN 1,448 million when excluding one-off items [12] - Return on Equity (ROE) for Q4 was 16.5%, with banking and payments showing strong ROE at 20.2% and 22.3% respectively [11][33] - Cost of funds increased to 3.2% in Q4, up 40 basis points quarter-on-quarter and 160 basis points year-on-year [65] Business Line Data and Key Metrics Changes - Banking revenues grew 7% in Q4, with net interest income increasing by 23% and fee income by 12% [73][88] - Wealth Management showed a recovery with a positive result of PEN 56 million in Q4, but still below sustainable profitability [28][101] - The payments business, particularly Izipay, saw acquiring fees up 8% quarter-on-quarter and 32% year-on-year, with strong growth in merchants and transactional volumes [29][102] Market Data and Key Metrics Changes - The Peruvian economy is expected to grow less than 2% in 2023, with inflation remaining high at 8.5% as of December [62][82] - Credit and debit card purchases increased by 7% quarter-on-quarter and 28% year-on-year, reflecting a growing market share [83][87] - The loan-to-deposit ratio for the company stands at 101%, better than the system average of 107% [65] Company Strategy and Development Direction - The company is focusing on a two-tier digital strategy to enhance customer experience and operational efficiency [58][112] - There is an emphasis on sustainability and ESG practices, with a goal to improve corporate sustainability assessment scores [56][105] - The company aims to leverage data and analytics to increase its customer base and enhance profitability [59][100] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and political instability in Peru, which may impact consumer payment capacity [40][62] - The company expects an increase in the cost of risk due to economic conditions and has adjusted its credit underwriting standards [70][90] - Despite challenges, management remains optimistic about the fundamentals of the Peruvian market and the growth potential in digital payments [62][100] Other Important Information - The efficiency ratio for Q4 was 34.8%, returning to pre-pandemic levels, with a full-year efficiency ratio of 36.1% [74][76] - The company has made significant progress in digital transformation, with 71% of customers interacting with the bank digitally [14][97] - The company plans to implement changes to capital ratio calculations in line with new regulations starting January 2023 [84] Q&A Session Summary Question: What are the expectations for the cost of risk in 2023? - Management indicated that the cost of risk is expected to increase due to a mix change and deteriorating macroeconomic variables, particularly affecting the consumer segment [37][40][48] Question: How will the digital initiatives translate into efficiencies and higher ROE? - Management emphasized that the digital strategy is focused on profitability and efficiency, with expectations for improved ROE as digital initiatives mature [114] Question: Can you break down the ROE guidance for different banking units? - Management provided insights into expected ROE across banking, insurance, and payments, indicating a cautious but optimistic outlook [117]

Earnings Presentation 3Q22 Results Intercorp Financial Services 1 Financial highlights 2 Key messages 3 Results by segment 3Q22 earnings of S/ 613 million, with recurring earnings of S/ 391 million | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------------|---------------|-------|-----------|------------|-------|----------|-------|----------------|-----------|----------|-------|------------| | | | | | | | | | | | | | | | | | IFS net profit | (S/ mn) | | 2 ...

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]