Core Viewpoint - AFL Group reported strong financial results for the first half of 2025, demonstrating significant growth in earnings and lending activities, supported by effective liquidity management and cost control [2][3][4]. Financial Performance - Consolidated earnings as of 30 June 2025 showed a net banking income of €15.4 million, up 43% from €10.8 million in the same period of 2024 [2][6]. - Gross operating income increased to €6.34 million, doubling from €2.9 million year-on-year [2][6]. - Net income after tax reached €4.66 million, compared to €1.95 million in the first half of 2024 [2][6]. Lending and Capital - Loan production for the half-year rose by 18% to €728 million compared to the first half of 2024 [6]. - Outstanding loans amounted to €9.13 billion, driven by competitive credit offerings to local authorities [4][6]. - Pledged capital increased to €332 million from €328 million at the end of 2024 [2]. Cost Management - The cost/income ratio improved to 66.4%, down from 67.8% at the end of 2024, reflecting effective cost control measures [2][4]. - The cost of risk remains low due to prudent management and the strong creditworthiness of local authorities [5][6]. Liquidity and Capitalization - Liquidity stood at €2.1 billion, sufficient to meet operational needs for 10 months [6][13]. - The CET1 solvency ratio was 56.52%, while the banking leverage ratio was 2.43%, indicating a solid capital structure [13][14]. Market Position and Ratings - AFL's financial structure is recognized as robust by rating agencies, with a long-term rating of A+ from Fitch and AA from Standard & Poor's [10][14]. - The organization has maintained a continuous presence in capital markets, raising €1.3 billion at a tightened margin of 15.7 basis points against the OAT curve [10][11].

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]