Intercorp Financial Services(US:IFS)2022-05-13 13:45Financial 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]