Intercorp Financial Services (NYSE:IFS) Q3 2025 Earnings Call November 07, 2025 09:00 AM ET Speaker1Good morning and welcome to Intercorp Financial Services' third quarter 2025 conference call. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference is being recorded. After the presentation, we'll open the floor to questions. At that time, instructions will be given as to the procedure to follow if you would like to ask a question. Also, you can submit o ...

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