IFS

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net income reached PEN 640 million with an 18.5% ROE, exceeding midterm targets despite a normalization of investment results and cost of risk. Higher-yielding loan segments accelerated to 12% year-over-year growth, specifically driven by a 31% increase in small business and a 9% rise in consumer lending. Management attributed a slight quarter-over-quarter revenue decline at the bank to lower financial transaction results and funding cost pressure, while noting that year-over-year comparisons were affected by a high base from extraordinary investment gains in the prior year. and lower financial transaction results. The payments ecosystem, anchored by Izipay and PLIN, continues to serve as a strategic lever for deepening primary banking relationships and securing low-cost funding. Interseguro and Inteligo maintained strong momentum, with Inteligo's assets under management reaching a record $10 billion., supported by healthy client engagement and advisory models. Operating expenses increased 11% year-over-year, reflecting strategic investments in digital capabilities, cybersecurity, Gen AI, and the expansion of the insurance sales force. Management maintains a full-year ROE guidance of above 17%, adopting a prudent stance due to potential El Niño impacts in the second half of 2026. GDP growth for Peru is projected at 3.4% for 2026, supported by resilient domestic demand and a market-friendly agenda from the new administration. The company expects a recovery in risk-adjusted NIM in the coming quarters as the funding mix improves and higher-yielding loan growth matures. Management anticipates booking forward-looking credit provisions in the second half of the year to mitigate risks associated with a potential 'strong to extraordinary' El Niño event. Loan growth is expected to remain in the high single digits for the full year, supported by recovering consumer confidence and private investment. El Niño probability for Q4 2026 has risen to 80%, posing risks to primary sectors like agriculture and fishing, though management notes a lower-risk portfolio than in 2023. Funding costs increased 20 basis points quarter-over-quarter, partially due to temporary inflation-pegged funding and a conservative liquidity build-up during the election period. A 'forward arbitrage strategy' in the treasury department impacted NIM negatively but contributed positively to financial transaction results, which grew 26% year-over-year. The eighth release of private pension funds concluded in February, leading to a gradual normalization of the excess liquidity that had previously suppressed cost of risk. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a lower impact than in 2023 due to a lower-risk portfolio and the presence of 'El Niño clauses' for corporate and fishing clients. Forward-looking provisions will likely be booked in Q3 and Q4 2026, focusing on potential disruptions in the consumer and SME books in specific geographic areas. The margin compression was driven by temporary factors: inflation-pegged funding, the full impact of a bond issuance, and excess liquidity held for election stability. Management confirmed that July data already shows a partial recovery in NIM and an increase in asset yields as the portfolio mix shifts toward higher-yielding retail segments. CEO Luis Felipe Castellanos stated the company is 'always open for business' and exploring alternatives in financial services, though he noted they have no specific opportunities in mind at this time. Any expansion will depend on whether the risk-profitability equation aligns with their long-term value creation model for Peruvian clients.

This article first appeared on GuruFocus. Net Income: IFS reported net income of 585 million soles in Q2 2026, with an ROE of 18.5%. Revenue: IFS revenues increased 3% year-over-year, with the bank's revenues up 9% year-over-year. Expenses: Expenses increased 11% year-over-year, driven by personnel and technology investments, with a cost-income ratio of 37%. Cost of Risk: Normalized to 2.1% in Q2 2026, up from 1.4% in Q1 but below the 2.5% recorded a year ago. Risk-Adjusted NIM: Remained resilient at 3.5%, up 10 basis points year-over-year. Loan Growth: Total loans grew 6% year-over-year (7% FX-adjusted), with higher-yielding loans growing 12% year-over-year. Consumer Loans: Grew 9% year-over-year in June, accelerating from 5% in March. Small Business Loans: Grew 31% year-over-year, with disbursements up 54%. Commercial Loans: Grew 7% year-over-year on an FX-adjusted basis. Cost of Funds: Reached 3%, up 20 basis points quarter-over-quarter but down 20 basis points year-over-year. Insurance Premiums: Up 9% year-over-year, driven by annuities and life. Assets Under Management: At Intelligo, reached a record high close to $10 billion, up 14% year-over-year. Contractual Services Margin (CSM): At Interseguro, increased 10% year-over-year. Warning! GuruFocus has detected 6 Warning Sign with IFS. Is IFS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. IFS delivered strong profitability with net income of 585 million soles and an ROE of 18.5%, above its mid-term target. Higher-yielding loans accelerated, growing 12% year-over-year, with consumer loans up 9% and small business loans up 31%. Risk-adjusted NIM remained resilient at 3.5%, up 10 basis points year-over-year, despite cost of risk normalization. Insurance and wealth management showed strong growth, with premiums up 9% and assets under management up 14% to a record high. The company's digital strategy is gaining traction, with retail primary banking customers up 16% and NPS scores strong at 61 points. Cost of risk increased to 2.1% from 1.4% in the previous quarter, reflecting normalization and higher-yielding portfolio mix. Net interest margin (NIM) faced pressure due to higher funding costs, including temporary effects from inflation-linked funding and bond issuance. Expenses increased 11% year-over-year, driven by investments in personnel and technology, impacting the cost-income ratio. The potential impact of El Nino poses a significant risk, with a high probability of a strong event, potentially affecting loan performance and requiring forward-looking provisions. Earnings declined 3% quarter-over-quarter due to normalization of investment results and cost of risk, with a high comparison base from last year's extraordinary gains. Q: Given the high probability of a strong El Nino, how are you evaluating the potential impact, and should we expect you to take a more cautious approach to loan origination? Also, do you still think you can achieve your 17% ROE guidance if you create additional provisions in the second half? A: Luis Felipe Castellanos (CEO) confirmed the company maintains its 17%+ ROE guidance despite potential El Nino provisions, citing a prudent approach. Carlos Torre (CEO, Interbank) detailed that while the El Nino phenomenon may be stronger than 2023 in terms of rainfall, the portfolio impact is expected to be lower due to a better risk profile and economic conditions. He noted that large corporate clients have El Nino clauses in their financing, and the impact is expected mainly in the consumer book, with forward-looking provisions likely booked in Q3 and Q4. The company plans to stay close to clients to help them through the short-term disruption rather than drastically altering its growth trajectory. Q: Can you explain the drivers behind the margin compression and the increase in funding costs this quarter, and what should we expect for margins going forward? A: Carlos Torre (CEO, Interbank) attributed the funding cost increase to several temporary factors: inflation-pegged funding impacted by high April inflation, the full quarter impact of a bond issuance, a profitable forward arbitrage strategy requiring more funding, and conservative excess liquidity held during the election period. Michela Casassa (CFO) added that the positive impact of the arbitrage strategy is seen in financial operations income, which grew 26% year-over-year. Management expects NIM to recover in the second half as these temporary effects fade and the mix shifts toward higher-yielding loans, with a partial recovery already seen in July. Q: What is the expected trajectory for cost of risk in the second half of 2026, excluding any El Nino provisions? A: Michela Casassa (CFO) stated that cost of risk should continue to gradually increase from the current 2.1% level, moving closer to 2.5% or slightly above, driven by the portfolio mix shift toward higher-yielding consumer and small business loans. She clarified this is due to the front-loaded nature of provisions under IFRS accounting for new loan origination, not necessarily a deterioration in credit quality. This increase should be accompanied by higher loan yields, resulting in a positive impact on risk-adjusted NIM. Q: With a new administration in Peru, what are your expectations for the political and economic environment, and would you consider entering new businesses like microfinance or pension fund management? A: Luis Felipe Castellanos (CEO) expressed a positive sentiment toward the new market-friendly government, citing a good set of technically experienced ministers and a focus on security, investment, and structural reforms. He noted that business and consumer confidence indicators have improved. Regarding new businesses, he stated IFS is always open to exploring opportunities that fit its risk-return equation and purpose, but has nothing specific in mind to comment on at this time. Q: Can you provide more details on the treasury forward strategy and its impact on NIM, and are these impacts expected to be temporary? A: Carlos Torre (CEO, Interbank) explained that the bank does not take a permanent forward position but capitalizes on arbitrage opportunities when they appear. The strategy increased funding costs, negatively impacting NIM, but generated positive income in other revenue lines. Michela Casassa (CFO) clarified that the positive impact is reflected in financial operations results, which grew 26% year-over-year as of June. Management views these impacts as temporary, with no current pipeline for new arbitrage positions. Q: Why did cash balances grow strongly at 25% year-over-year, and is this a conscious strategy? A: Luis Felipe Castellanos (CEO) explained that the elevated cash position was a conscious, conservative measure taken during the election period to ensure ample liquidity, given the contested political scenario. He confirmed that this situation has already been normalized following the election results. Q: What is the bank's sensitivity to policy rate changes, particularly in soles and dollars? A: Michela Casassa (CFO) provided the theoretical sensitivity: for each 100 basis point increase in rates, there is close to a 10 basis point negative impact on NIM due to the faster repricing of liabilities. She noted that the dollar book is actually more neutral and only marginally impacted, while the sensitivity is primarily to sol rates. She also emphasized that this theoretical number has never fully materialized due to various offsetting factors. Q: Given the growth in credit cards, why were loan yields flat in the quarter instead of increasing? A: Carlos Torre (CEO, Interbank) explained that this is mostly a timing issue, as the growth is reflected in end-of-period balances but not in average balances for the quarter. The full impact of the accelerated growth, which occurred mainly in the latter part of the quarter, is expected to show up in the following full quarter. Luis Felipe Castellanos (CEO) added that the acceleration was not present in April when liquidity was still high, but materialized later in the quarter. Q: Where should the risk-adjusted net interest margin land in the second half of 2026 and in 2027, considering cost of risk is normalizing faster than loan yield expansion? A: Luis Felipe Castellanos (CEO) reinforced that under IFRS, provisions for consumer and SME loans are front-loaded while yields show up over time. He reiterated that funding costs should normalize during the second half, leading to a positive impact on NIM. The combination of higher-yielding loan growth and normalized funding costs is expected to support a recovery in risk-adjusted NIM in the coming quarters. Q: How much provisions did you create for El Nino in 2023, and how are you evaluating the potential impact this time? A: Carlos Torre (CEO, Interbank) declined to commit to a specific number, stating the company will finalize its analysis in Q3 and Q4. He noted that the 2023 event is not representative due to the confluence of post-COVID recovery, high inflation, and a riskier portfolio. He indicated that 2017 is a closer comparison, but the bank was much smaller then. Management emphasized that the current portfolio has a lower risk profile and that the focus is on supporting clients through the event, with provisions expected to be booked in the second half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Intercorp Financial Services Inc.? Here are five stocks we like better. IFS reported solid profitability in Q2 2026, with PEN 585 million in net income and 18.5% ROE. Management maintained its full-year ROE target above 17% despite potential El Niño-related risks. Loan growth accelerated in higher-yielding segments, including consumer lending and small businesses. Higher-yielding loans rose 12% year over year, while the small-business portfolio grew 31%; full-year loan growth is expected in the high-single digits. Margins faced temporary pressure from higher funding costs and normalized risk expenses, but management expects NIM to improve in the second half. Insurance premiums, wealth-management assets and digital engagement continued to expand, supporting the company’s diversified growth strategy. Intercorp Financial Services (NYSE:IFS) reported second-quarter 2026 net income of PEN 585 million and return on equity of 18.5%, with management citing continued growth in higher-yielding loans, insurance premiums and wealth-management assets. Chief Executive Officer Luis Felipe Castellanos said quarterly earnings declined 3% from the prior quarter, largely reflecting the normalization of investment and financial-transaction results following a particularly strong first quarter, as well as a normalization in cost of risk. Still, he said the company remained above its midterm profitability target and was supported by its diversified banking, insurance and wealth-management businesses. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Management maintained its expectation for full-year ROE above 17%, despite a potentially stronger El Niño event later in 2026. The company said it is monitoring weather-related risks closely and expects any material impact to begin in the second half of the year. Chief Financial Officer Michela Casassa said higher-yielding loans grew 12% year over year and nearly 6% from the first quarter. Consumer lending accelerated, with consumer loans rising 9% year over year in June, compared with 5% in March. Cash-loan disbursements rose 37% year over year, while credit-card turnover increased 21%. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Small-business lending continued to expand rapidly, with the portfolio up 31% year over year and disbursements up 54%. Higher-yielding products accounted for 22% of total loans at the end of the period. Total loans increased 6% year over year, or 7% on an FX-adjusted basis. Commercial loans also gained momentum, supported by the company’s focus on deepening relationships with clients and combining banking and acquiring services. → First Solar’s Profit Engine Faces a New Policy Test in Washington Management said it expects high-single-digit loan growth for the full year. Castellanos said the company does not expect the potential El Niño event to substantially alter its broader growth trajectory, though it may make targeted adjustments in affected regions and sectors. Cost of risk rose to 2.1% in the second quarter from an unusually low 1.4% in the first quarter, though it remained below the company’s risk appetite and below the 2.5% reported a year earlier. Casassa said approximately 30 basis points of the sequential increase reflected normalization, while roughly 10 basis points resulted from loan growth and a shift toward higher-yielding segments. Retail cost of risk increased to 3.3% from 2.7%, while commercial banking cost of risk rose to 0.8%. Management said it was not seeing deterioration in asset quality and that recent consumer vintages were performing in line with expectations. However, Interbank CEO Carlos Tori said the company could book forward-looking credit provisions in the third and fourth quarters as it gets closer to the expected effects of El Niño. He said the company expects the largest potential impact to be in consumer lending in regions affected by heavy rains, while it does not expect a significant impact among large corporate customers. Tori said agricultural and fishing clients generally have El Niño clauses in their financing that allow them to defer principal payments during an El Niño year. He added that the current portfolio carries a lower risk profile than it did during the 2023 weather event, which was compounded by post-pandemic conditions, inflation, recessionary pressures and social unrest. Casassa said cost of risk could continue gradually rising toward 2.5% or slightly above that level due to the mix shift into consumer and small-business products, which require upfront provisioning under IFRS accounting. She said this does not necessarily indicate credit deterioration, as higher-yielding loans also provide higher returns over time. Reported net interest margin faced pressure during the quarter as funding costs increased 20 basis points sequentially to 3%. Management attributed the increase partly to inflation-linked funding, the full-quarter effect of a first-quarter bond issuance, a larger cash position associated with a forward-arbitrage strategy, and conservative liquidity management surrounding Peru’s elections. Tori said the company held additional liquidity in May and June as a precaution against possible election-related market disruption, though those funds ultimately were not needed. Management characterized the effects as temporary and said cash balances had already normalized after the quarter. Casassa said the forward-arbitrage strategy increased funding costs and weighed on NIM, but also generated higher financial-transaction income. Financial-operations income rose 26% year over year through June, she said. Loan yields were stable in the quarter, which management described as encouraging given the move toward higher-yielding products. Tori said the impact of stronger credit-card, cash-loan and small-business originations should become more visible in the following full quarter. The company said it had already seen a partial recovery in NIM and yields during July and expects margins to improve during the second half. Interseguro’s premiums increased 9% year over year, primarily driven by annuities and life insurance. Its contractual service margin rose 10%, while short-term insurance premiums increased 8%. Investment results rose 28% year over year, with return on investment at 7.1%. Inteligo’s assets under management, including deposits, reached a record close to $10 billion, up 14% year over year. Fee income was broadly stable, but increased 7% on an FX-adjusted basis, according to management. IFS also highlighted progress in expanding primary banking and digital relationships. Retail primary banking customers increased 16% year over year, while Interbank Plin transactions rose 44% to 234 million. Plin reached 2.8 million monthly active users, and monthly transactions increased 45% year over year. The company’s cost-income ratio stood at 37%, despite an 11% year-over-year rise in expenses tied to personnel, technology, cybersecurity, infrastructure, data analytics and the expansion of Interseguro’s sales force. Looking ahead, management expects Peru’s GDP to grow 3.4% in 2026, supported by domestic demand, private investment and consumption. Castellanos said the new administration’s stated focus on investment, security, public-sector modernization and El Niño preparedness was constructive, while cautioning that it remains early in the government’s term. Intercorp Financial Services (NYSE:IFS) is a Lima-based financial holding company that brings together a suite of banking and non-banking financial businesses under the Intercorp Group umbrella. Through its network of subsidiaries, the company provides a broad range of products and services designed to meet the needs of individual consumers, small and medium-sized enterprises, and large corporations across Peru. The company's core banking operations are conducted through Interbank, which offers deposit accounts, personal and business loans, credit and debit cards, trade finance and electronic banking solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Intercorp Financial Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

LIMA, Peru, July 13, 2026 /PRNewswire/ -- Intercorp Financial Services Inc. ("IFS" or "the Company") (BVL/NYSE: IFS) announced today that it will host its Second Quarter 2026 earnings conference call & video webcast presentation. The conference call will take place on Wednesday, August 12, 2026, at 10:00 a.m. E.T. / 9:00 a.m. Lima Time. Presenting for IFS:Mr. Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial ServicesMs. Michela Casassa, Chief Financial Officer, Intercorp Financial ServicesMr. Carlos Tori, Chief Executive Officer, InterbankMr. Gonzalo Basadre, Chief Executive Officer, InterseguroMr. Bruno Ferreccio, Chief Executive Officer, Inteligo The conference call can be accessed through the following numbers:From within the U.S.: +1 866 807 9684From outside the U.S.: +1 412 317 5415Conference ID: IFS There will be a live video webcast presentation on this event available at:https://event.choruscall.com/mediaframe/webcast.html?webcastid=QWJ4PX1O A replay of this conference call will be available shortly after its conclusion at www.ifs.com.pe Intercorp Financial Services will release Second Quarter 2026 results on Tuesday, August 11, 2026, after the market close. In accordance with IFS' corporate disclosure policy, the Company's Quiet Period began on July 20, 2026, and will conclude after the Second Quarter 2026 financial results have been published. During the Quiet Period, IFS will not disclose any financial information or comment on its financial results or operations. About the Company:Intercorp Financial Services Inc. ("IFS"), is a company incorporated under the laws of the Republic of Panama, and has securities listed on the Lima Stock Exchange and the New York Stock Exchange. IFS, through its subsidiaries, is a leading provider of financial services in Peru. IFS' main subsidiaries are Banco Internacional del Perú, S.A.A.-Interbank ("Interbank"), Interseguro Compañía de Seguros, S.A. ("Interseguro") and Inteligo Group Corp. ("Inteligo"). Interbank is a full-service bank providing general banking services to retail and commercial customers. Interseguro is a leading insurance company, providing annuities, individual life insurance, bank assurance, and direct sale of retail products including the Peruvian mandatory traffic accident insurance. Inteligo is a fast-growing provider of wealth management services through Inteligo Bank Ltd. and Interfondos, as well as brokerage services through Inteligo SAB. View original content:https://www.prnewswire.com/news-releases/intercorp-financial-services-inc-to-host-second-quarter-2026-earnings-conference-call--video-webcast-presentation-302824087.html

This article first appeared on GuruFocus. Net Income: Record quarterly net income of 602 million soles, a 35% increase year-over-year. Return on Equity (ROE): Achieved an ROE of 19.4%. Loan Growth: Higher-yielding loans grew by 9% year-over-year. Risk-Adjusted NIM: Increased by 90 basis points year-over-year, reaching 4.2%. Cost of Risk: Maintained a low cost of risk at 1.4%. Retail Banking Primary Customers: Grew by 14%. Net Promoter Score (NPS): Reached 68 points. Written Premiums: Grew by 35% year-over-year. Assets Under Management: Increased by 13% year-over-year. Revenue Growth: IFS revenues grew 10% year-over-year. Cost-to-Income Ratio: Stands at 36.6%. Total Loan Portfolio Growth: Grew around 6% year-over-year. Mortgage Lending Growth: Increased by more than 8% year-over-year. Small Business Loan Growth: Increased by nearly 30% year-over-year. Deposit Growth: Total deposits grew 8% year-over-year. Retail Deposit Growth: Increased by more than 13%. Commercial Deposit Growth: Increased by 27%. Digital Adoption: Retail digital adoption at 84%, commercial digital clients at 75%. Insurance Contractual Service Margin: Increased by 15% year-over-year. Intelligo Assets Under Management: Reached $9.5 billion, including deposits. Warning! GuruFocus has detected 1 Warning Sign with IFS. Is IFS fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Intercorp Financial Services Inc (NYSE:IFS) reported a record quarterly net income of $602 million with an ROE above 19%, reflecting disciplined execution across its platform. Higher-yielding loans showed positive momentum with a 9% growth year-over-year, contributing to the company's strong financial performance. IFS's insurance and wealth management businesses delivered double-digit growth, with written premiums growing by 35% year-over-year. The strategic partnership with InRetail to acquire InFinance XP is expected to strengthen IFS's consumer finance and payments ecosystem. IFS continues to enhance its digital strategy, with initiatives like the new Business App and PLIN Credit Card, driving deeper customer engagement and improved customer experience. The international environment remains volatile, with higher energy prices and external uncertainties potentially pressuring inflation and growth outlook. The potential impact of El Nino could affect economic activity in the coming quarters if weather-related disruptions materialize. IFS's cost-to-income ratio increased to 36.6% due to accelerated spending in technology and talent, reflecting higher operational expenses. The near-term outlook is challenging with inflation above the central bank's target and political uncertainty related to the Presidential elections. Despite strong performance, the company's cost of risk is expected to gradually normalize from current low levels as liquidity conditions change. Q: Can you provide more color on the latest update on the Presidential elections and the potential impact of El Nino? A: Luis Felipe Castellanos Lopez Torres, CEO: The election count is nearly complete, with expectations for final results by May 15th. The second round is scheduled for June 7th. Regarding El Nino, the probability of a moderate event has increased to 43%. The impact is expected later this year or early next year, and we are preparing accordingly. Q: How do you see the cost of risk evolving in 2026, given the strong first quarter performance? A: Luis Felipe Castellanos Lopez Torres, CEO: The system is performing well, and Interbank has seen good results. We expect cost of risk to gradually normalize as liquidity decreases, with a long-term appetite in the 2.5% to 2.8% range. Q: What are the drivers behind your revised ROE guidance for 2026? A: Luis Felipe Castellanos Lopez Torres, CEO: The strong start to the year and low cost of risk are key drivers. We are cautiously optimistic, with Peru's economy expected to grow around 3% and strong commodity prices supporting business confidence. Q: Can you provide more details on the expected impact of consumer loans on margins? A: Michela Casassa Ramat, CFO: We expect a gradual recovery in NIM as the portfolio mix changes. Yield on loans should start to pick up, and while risk-adjusted NIM will remain stable, both yield and cost of risk components should increase. Q: What should we expect for the insurance business, given the stable number of clients but growing premiums? A: Gonzalo Pasagre, CEO of Interseguro: Premiums are growing fast due to private annuities and life insurance, which have higher premiums per client. The number of clients is stable due to the large number of bank assurance clients, but the business is growing healthily. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Intercorp Financial Services Inc.? Here are five stocks we like better. Record Q1 profit: Intercorp Financial Services reported quarterly net income of PEN 602 million, with ROE above 19%. Management said the strong result was driven by better banking profitability, lower credit costs, and double-digit growth in insurance and wealth management. Banking and funding trends improved: Interbank posted record earnings as loan growth, lower cost of risk, and stronger funding costs supported results. Deposits rose 8% year over year, and the company’s risk-adjusted net interest margin improved to 4.2%. Outlook and strategic investments: IFS raised its full-year ROE outlook to above 17% and still expects high single-digit loan growth in 2026. The company is also investing in digital payments and expanding through the $130 million acquisition of InFinance XP to strengthen consumer finance and payments. Intercorp Financial Services (NYSE:IFS) reported a record first-quarter 2026 profit as stronger banking profitability, double-digit growth in insurance and wealth management, and lower credit costs helped lift returns above prior expectations. Chief Executive Officer Luis Felipe Castellanos told investors that the company delivered quarterly net income of PEN 602 million and return on equity above 19%. Chief Financial Officer Michela Casassa said net income rose 35% year over year, while ROE reached 19.4%. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Management said Peru’s economy began 2026 with better-than-expected momentum, with first-quarter GDP growth tracking around 3.6%, supported by private spending and favorable commodity prices. However, executives also pointed to risks from global volatility, higher energy prices, inflation pressures, potential weather disruptions from El Niño and political uncertainty tied to the presidential election cycle. Interbank, the company’s banking unit, also posted record quarterly net income, according to Castellanos. Casassa said the bank’s net income increased 44% year over year, with ROE improving to 19.5%. Results were supported by lower cost of risk, gains tied to sovereign bonds, strong foreign exchange gains and improved funding costs. → MercadoLibre Boldly Invests in Growth: Discount Deepens The company said total loans grew about 6% year over year, or 7% excluding foreign exchange effects. Higher-yielding loans grew 9% from the prior year, with growth led by mortgages, mid-sized companies and small businesses. Small business lending stood out, rising nearly 30% year over year, while mortgage lending grew more than 8%. Casassa said consumer balances were broadly stable compared with the prior quarter due to excess liquidity from pension fund withdrawals, but consumer loans still grew 5% year over year. She added that April showed a “clear acceleration” in growth, a point management reiterated during the question-and-answer session. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Cost of risk fell to 1.4% in the quarter, its lowest level in four years, according to Casassa. Retail cost of risk dropped below 3%, while consumer lending cost of risk improved to below 5% from around 7% a year earlier. Non-performing loan ratios remained healthy, and the coverage ratio stood at about 140%. In response to an analyst question, Interbank CEO Carlos Tori said the company does not have a target to increase cost of risk, but expects risk to gradually normalize as liquidity fades and higher-yielding loans grow. He said the bank’s risk appetite is in the 2.5% to 2.8% cost-of-risk range over the long term, not the short term. IFS reported a 90-basis-point year-over-year increase in risk-adjusted net interest margin, reaching 4.2%. Casassa said the metric improved another 20 basis points from the prior quarter, mainly driven by lower cost of risk. Reported net interest margin declined 10 basis points from the prior quarter but remained stable year over year. Casassa said a January bond issuance had a negative impact of about 20 basis points on NIM, which she said should disappear later this year. Deposits remained the company’s main funding source, representing about 82% of total funding. Total deposits grew 8% year over year, or 9% excluding foreign exchange effects. Retail deposits rose more than 13%, while efficient commercial deposits increased 27%. Casassa said cost of funds fell 40 basis points year over year and 10 basis points from the previous quarter. Management highlighted continued investment in digital capabilities, payments, cybersecurity, technology infrastructure and generative artificial intelligence. Expenses increased 13% year over year, and the company’s cost-to-income ratio stood at 36.6%. Plin, the company’s digital payments platform, ended the quarter with 2.7 million monthly active clients and more than 70 million monthly transactions, with 60% of transactions going to merchants. Retail digital adoption reached 84%, while commercial digital clients stood at 75%. Retail net promoter score reached a record 68, and commercial NPS reached 73. Casassa said Plin WhatsApp, described by the company as the first bank-led payments experience on WhatsApp in Peru, reached nearly 7,000 affiliates by the end of March. The company also launched Plin Credit Card, a buy-now-pay-later solution that had more than 30,000 active clients. During the Q&A session, Tori said the Central Bank is developing an additional payment “highway” through a service provided by UPI from India. He said the system could come online around December, though he said January 2027 may be more realistic for most banks given December’s high transaction volume. Tori said the new rail would be complementary to existing Plin infrastructure. Interseguro, the insurance business, continued to grow in private annuities and life insurance. Written premiums increased 35% year over year, mainly due to private annuities, while contractual service margin rose 15%. Casassa said annuities increased 19% and individual life rose 17%. In response to a question about client growth, Interseguro CEO Gonzalo Basadre said the total client count was growing more slowly because many insurance clients come from bancassurance products that are large in number but small in revenue per client. He said growth is being driven by private annuities and life insurance, which have fewer clients but much larger average premiums. Inteligo, the wealth management unit, reached a new high in assets under management of $9.5 billion, including deposits. Casassa said assets under management grew 13% year over year, while fee income increased 9%. Inteligo’s ROE reached 22% in the quarter. Management revised its full-year ROE view upward. Casassa said the company now sees year-end ROE above 17%, compared with prior guidance of around 17%, while still expecting high single-digit loan growth for 2026. The company said its cost-to-income ratio remained within its guidance range. IFS also discussed its recently announced acquisition of InFinance XP, formerly Financiera Oh!, through IXP Holding for $130 million. InRetail Peru Corp. and IFS each own 50% of IXP Holding following the closing. Casassa said InFinance XP has nearly 3 million customers, PEN 1.8 billion in loans and PEN 1.5 billion in deposits. Castellanos said the partnership with InRetail is intended to strengthen IFS’ consumer finance and payments ecosystem by combining the company’s financial capabilities with InRetail’s retail footprint. He said the launch of Sip, an app combining financial products, payments and loyalty, has exceeded the company’s initial expectations, though he described the opportunity as medium- to long-term and requiring further investment. Looking ahead, Castellanos said the company remains focused on profitable growth, risk management, efficiency and disciplined investment as it navigates a more volatile environment. Intercorp Financial Services (NYSE:IFS) is a Lima-based financial holding company that brings together a suite of banking and non-banking financial businesses under the Intercorp Group umbrella. Through its network of subsidiaries, the company provides a broad range of products and services designed to meet the needs of individual consumers, small and medium-sized enterprises, and large corporations across Peru. The company's core banking operations are conducted through Interbank, which offers deposit accounts, personal and business loans, credit and debit cards, trade finance and electronic banking solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Intercorp Financial Services Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Tuesday, May 12, 2026 at 10 a.m. ET Chief Executive Officer — Luis Felipe Castellanos Lopez-Torres Chief Financial Officer — Michela Casassa Ramat Chief Executive Officer, Interbank — Carlos Tori Grande Chief Executive Officer, Interseguro — Gonzalo Basadre Chief Executive Officer, Inteligo — Bruno Ferreccio Need a quote from a Motley Fool analyst? Email [email protected] Ivan Peill: Thank you, and good morning, everyone. On today's call, Intercorp Financial Services will discuss its first quarter 26 earnings. We are very pleased to have with us Mr. Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services. Ms. Michela Casassa, Chief Financial Officer, Intercorp Financial Services Mr. Carlos Tori, Chief Executive Officer, Interbank Mr. Gonzalo Basadre, Chief Executive Officer Inter Seguro, Mr. Bruno Ferreccio, chief executive officer Intelligo. They will be discussing the results that were distributed by the company yesterday. There is also a webcast video presentation to accompany the discussion during this call. If you did not receive a copy of the presentation, or the earnings report, they are now available on the company's website ifs.com.pe. Otherwise, if you need any assistance today, please call Inspire Group in New York. On (646) 940-8.84 thousand. I would like to remind you that today's call is for investors and analysts only. Therefore, questions from the media will not be taken. Please be advised that forward looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, statements made are based on several assumptions and factors that could change. Causing actual results to materially differ from the current expectations. For a complete note on forward looking statements, please refer to the earnings presentation and report issued yesterday. It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercorp Financial Services. For his opening remarks. Mr. Castellanos, please go ahead, sir. Lord Luis Felipe Castellanos Lopez-Torres: Thank you. Good morning, and thank you all for joining our first quarter 26 earnings call. Let me start on the macro front. 2026 started better than expected. With first quarter GDP growth of around 3.6%, supported by private spending and favorable commodity prices. However, going forward, the outlook remains subject to certain risks, The international environment has become more volatile with higher energy prices and external uncertainty potentially pressuring inflation and growth outlook. In addition, the potential impact of El Nino could affect activity in the coming quarters if weather related disruptions materialize. While Peru's monetary framework and macro fundamentals continue to provide support, we believe it is appropriate to remain prudent and closely monitor how both domestic and external risks evolve. Turning to IFA's first quarter results. We delivered record quarterly net income of 602 million and an ROE above 19%. These results reflect disciplined execution across our platform and the benefits of our model. At Interbank, we also delivered record quarterly net income, supported by low cost of risk and improving risk adjusted NIM. Loan growth has been more measured due to pension fund withdrawals, although higher yielding segments continue to grow at a high-single-digit pace. In parallel, we are making progress with EasyPay, strengthening our merchant franchise and capturing joint business opportunities with the bank. We are also enhancing our small business value proposition through our recently launched business app, while Plin continues to deepen engagement through new features such as Plin credit card. Interseguro continues to grow in its core business, supported by private annuities and life insurance. It is also leveraging synergies with Intelligo to expand private annuities and with Interbank to advance integrated bank assurance solutions. Intelligo, our wealth management segment, continues to grow at double-digit rate, reaching a new record in assets under management, thanks to our customer's trust and consistent engagement. IFS remains committed to focused profitable growth with customers at the center of our decisions. We are reinforcing this through digital excellence, deeper primary relationships, and continued investments in technology, GenAI, and innovation to improve productivity and customer experience. Highlight of this quarter was our strategic partnership within retail, As announced in April, IFS and InRetail agreed to acquire Infinance XP. Formerly Financiera O, through the purchase of EXP Holding for a $130 million. Believe this transaction will strengthen our consumer finance and payments ecosystem by combining IFS's capabilities within retail's reach. A powerful combination to create a superior value proposition to enhance customer experience in everyday uses through a scalable digital platform. We are committed to make the investments required to make this possible. Looking ahead, we remain focused on executing our strategy in an environment that may continue to be volatile. Our platform and diversified sources of revenue have proven resiliency across cycles. We believe we are well positioned to keep executing our growth strategy with discipline, sustaining profitability, and continuing to strengthen our leadership in Peru. We maintain a strong focus on risk management, efficiency, and disciplined investments. Now let me pass it on to Michela for further explanation of this quarter's results. Thank you. Michela Casassa Ramat: Thank you, Luis Felipe. Good morning, and welcome everyone to Intercorp Financial Services first quarter earnings call. We would like to begin with our quarterly key messages. In 2026, we see a robust start to the year, delivering a solid performance across all segments as mentioned by Luis Felipe. Net income reached a quarterly record of 602 million soles, marking a 35% increase compared to the prior year and a return on equity of 19.4%. Second key message is that higher yielding loans continue with a positive momentum, showing a 9% growth on a year over year basis. Third, risk adjusted NIM increased 90 basis points over the year reaching 4.2% in the last quarter, while we maintain a low cost of risk at 1.4% and cost of funds below 3%. Fourth, we continue to deepen primary banking relationships, and as a result, our retail banking primary customers grew by 14% and our NPS reached 68 points. Fifth, our insurance and wealth management business continues to deliver double-digit growth with written premiums growing by 35% year over year, mainly due to the growth in private annuities and with assets under management growing 13% year over year. On this slide, I will start with a quick update on our latest acquisition. In Retail Peru Corp. And Intercor Financial Services, announced the acquisition of Infinance XP, formerly Financiera O. We executed the transaction through the purchase of EXP Holding Corp, from IFS Retail Corp for a $130 million implying a 1.19 price over book value multiple, following the closing InRetail and IFS each own 50% of EXP holding. Additionally, we wanted to mention that as part of Infinance's digital strategy, they have recently launched SIP, an app that brings together financial products, payments, and the loyalty program in 1 application. On slide 4, we wanted to highlight 3 key points. First, this is a strategic partnership to strengthen our consumer finance and payments ecosystem. We are building on Infinance XP scale with close to 3 million customers, 1.8 billion in loans and PEN 1.5 billion in deposits. Second, we are combining IFS' solid financial position and integrated capabilities with InRetail's leading retail platform which has more than 4 thousand stores nationwide to accelerate adoption and distribution. Third, we are enhancing the customer value proposition through a scalable digital platform, expanding access and convenience and making everyday payment and consumer credit simpler and more seamless. Now let's start with our first key message. On slide 6, let me start with a brief update on the macro environment. We entered 2026 with stronger momentum than expected. GDP growth for the first quarter is tracking around 3.6%, following a solid finish to 2025 supported by private spending and still favorable commodity prices. That said, the near term outlook has become more challenging. Inflation has sped up above the Central Bank's target due to temporary supply shocks and global conditions have turned more volatile, particularly with higher energy prices. Looking ahead, growth should remain close to 3%, supported by sectors such as construction, commerce and services, even though political uncertainty related to the presidential elections could slightly slow the pace. Nonetheless, monetary policy remains supportive with a reference rate at 4.25%, which is 50 basis points below the Fed. At this point, we do not expect rate cuts from the Central Bank. Moreover, while the SOL has shown an appreciation trend over the last 12 months, more volatile global conditions and domestic political dynamics have led to a depreciation of 2.2% year to date as of May. In sum, Peru continues to offer strong fundamentals and attractive long term opportunities even as we navigate a more volatile environment in the near term. In terms of domestic demand, growth continues to be led by private investment, which is expected to expand by around 7% this year. This reflects a mining project pipeline of over €60 billion across more than 60 projects, together with the infrastructure works already underway, particularly in transportation and energy. This momentum is clearly visible in strong construction activity. Private consumption remains solid supported by real wage growth and a still tight labor market with a formal wage bill expanding by over 5% in real terms. While consumer and business confidence softened in April as the electoral cycle intensified, this has not yet translated into fundamentals. Business confidence has remained in the positive part of the range on the back of record copper and gold prices. There are still some risks to monitor. Weather conditions, including a higher probability of a moderate coastal El Nino could affect sectors such as fishing and trade, while higher global energy prices may continue to pressure costs. That said, current momentum and underlying fundamentals point to resilient domestic demand even as the electoral process adds uncertainty. In this context, credit growth remains slightly positive led by retail lending, which continues to outpace commercial credit. On Slide 8, we delivered a very strong start to the year with record quarterly net income at IFS. Earnings were up 35% year over year and ROE above 19. Earnings also improved substantially versus last quarter. At the bank, results were supported by lower cost of risk and strong financial transaction results, including gains on our sovereign bond portfolio and dividends received from IFS which we net of IFS consolidation, as well as strong FX gains. Net income increased 44% versus last year and the bank's ROE improved to 19.5%. Interseguro and Intelligo also posted another quarter of double-digit growth supported by healthy core trends. At Interseguro, results were mainly supported by a stronger insurance result, excluding the impact of inflation mainly in annuities and life. At Inteligo, results benefited from a stronger return on the investment portfolio with ROE reaching 22%, Overall, it was a solid quarter across all IFS business lines with core operating performance as the main driver of profitability. On Slide 9, you can see that IFS revenues grew 10% year over year. At the bank, top line growth was up 8% year over year, supported by ongoing improvements in our cost of funds stronger fee generation and better investments and FX results. Interseguro also showed strong revenue growth of 18% driven by a better insurance result in Life and Annuities. And at Intelligo, revenues increased 34%, reflecting steady fee growth in line with higher assets under management. Investments performance also improved in the quarter as we reflect a softer fourth quarter comparison as the portfolio delivered a 12-month return of above 12%. On Slide 10, IFS expenses increased 13% year over year, reflecting the investments we are making to support our long term growth. This includes accelerated spending in technology to strengthen resilience enhance the user experience, improve cybersecurity, expand capacity, and advance our GenAI capabilities. We are also investing in leadership and talent across key teams because people remain central to executing our strategy. As a result, the cost to income ratio at IFS level stands at 36.6%. Now let's move on to our second key message. On Slide 12, we are seeing consistent growth across products and segments with a 9% growth in our higher yielding loans. Our total loan portfolio grew around 6% year over year or 7% excluding FX. Growth was driven by mortgages, midsized companies and small businesses, with this last 1 up nearly 30% over the past year. In retail banking, we continue to see healthy momentum across segments. Mass market remains our core retail franchise representing roughly 66% of the retail portfolio while affluent continues to expand as well. Consumer balances were broadly stable quarter on quarter reflecting the expected excess liquidity, yet still grew 5% year on year, with disbursements growing 15% year over year during the month of March. Good news came in April, where growth came in very strong, showing an acceleration. Mortgage lending also continued to outperform growing more than 8% year over year. We gained 20 basis points of market share reaching 16.2%, which is more than 100 basis points above the Fourth Bank, hence firmly positioning us as the third largest player in the system. In commercial banking, performance was strong across corporate, midsized companies and small business. Small business stood out again, growing almost 30% year over year, and disbursements more than doubling year over year during the month of March. This means we not only replace all Impulso MyPeru maturities, but expanded our book to more than 3x that level. Over the past year, disbursements have doubled, reflecting the strength of our enhanced value proposition. And we have recently launched our new business banking app for small business, which now brings together both Interbank and EasyPay functionalities in 1 place. This is a key step to make our clients more digital, improve day to day interactions with the bank, and ultimately, deepen primary banking relationships. Following with the third message we continue to see improvement in risk adjusted NIM. On Slide 14, let me share a quick update on asset quality. Our quarterly cost of risk continued to improve reaching 1.4% this quarter. The lowest level in the past 4 years. This reflects a healthier loan mix and a more supportive credit environment together with the positive impact from the excess liquidity in the retail portfolio. In retail, cost of risk is now below 3% down 100 basis points versus last quarter and well below our risk appetite. Consumer lending continues to perform better with cost of risk improving from around 7% to below 5% year over year supported by healthier customer and the positive impact of recent liquidity events. Importantly, new vintages are also tracking well. On the commercial side, asset quality remains strong with cost of risk stable. Overall, nonperforming loan ratios remain healthy and our coverage ratio is solid at around 140%. Looking ahead, as our consumer and small business portfolios continue to grow and now represent around 22% of total loans, we would expect cost of risk to gradually normalize from these very low levels. Even in a volatile environment, these trends point to a healthier operating backdrop and reinforce that our disciplined risk management is supporting sustainable growth. On slide 15, there are some good news to highlight in terms of risk adjusted NIM. We continue to make meaningful progress on a risk adjusted basis. The risk adjusted NIM is up 90 basis points year over year reaching 4.2%. The last quarter alone added another 20 basis points mainly driven by the lower cost of risk. On the asset side, average loan yields were slightly lower, This mainly reflects the risk mix of the portfolio. On the funding side, our cost of funds declined by another 20 basis points quarter over quarter, reflecting continued improvement in our deposit mix and pricing and offsetting the impact from yield on loans. As a result, reported NIM declined by 10 basis points versus last quarter, but it remained stable year over year. it is worth noting that the bond issuance completed in January added a negative impact of around 20 basis points to NIM, which will disappear later this year. On Slide 16, I want to spend a moment on funding the trends are moving in the right direction. Deposits continue to be our main source of funding, representing about 82% of the total. Total deposits grew 8% year over year, or 9% excluding FX effect. Retail deposits continued to grow, up more than 13% with savings and transactional balances up over 20%, supported by the pension fund release. On the commercial side, the continued expansion of our payment ecosystem led to a 27% increase in efficient commercial deposits. All of this is translating into lower funding costs, as our cost of funds is down 40 basis points year over year, and a further 10 basis points over the last quarter. Cost of deposits improved by 20 basis points just in the quarter. With efficiency efficient funding now at about 40% of the mix, we still see additional room for improvement. Moving on to our digital strategy, our payment ecosystem with PLIN and EasyPay is driving our growth in low-cost funding. We have continued working to generate further synergies as we drive the growth of our payment ecosystem, focusing on increasing transactional volumes, offering value added services, and leveraging EasyPay as both a distribution network for Interbank products and a source to increase float. As mentioned, 1 key development has been the new banking app for small business, which allows us to deliver an integrated solution maximize the value we bring to our clients. As such, the flows from EasyPay were up 60% over the past year for the segment, contributing to a 40% increase in deposits, which now account for 12% of wholesale deposits or 33% of wholesale low cost deposits. Additionally, the flows from EasyPay to Interbank expanded by 16% in the same period as Interbank's share of EasyPay flows is around 40%. PLIN continues to gain scale and deepen engagement. PLIN WhatsApp, the first bank led payments experience on WhatsApp in Peru, reached almost 7 thousand affiliates by March. Usage keeps accelerating, with transactions per user up 44% quarter over quarter. In March, we launched PLIN Credit Card, our buy now pay later solution where we already have more than 30 thousand active clients. Our digital initiatives continue to create tangible value and deepen primary banking relationships with PLIN playing a central role. Over the past year, our retail primary banking base grew 14% and now represents more than 35% total retail clients. PLIN closed the quarter with 2.7 million monthly active clients and more than 70 million monthly transactions with 60% going to merchants. We also continue to see encouraging trends in our digital indicators. Retail digital adoption increased to 84%, and commercial digital clients now stand at 75%. The good news is that NPS improved quarter over quarter reaching 68 in retail, a record high, and 73% in commercial supported by agility and simplicity of our app and consistently strong service quality. Finally, we are upgrading the app experience with a clear focus on security, speed, and self-service. We added anti fraud alerts on the home screen and pilot piloted temporary credit card blocking, increasing alert contactability by over 40%. In addition, we enable digital tracking of customer requests helping reduce customer assistance by 20% and we reduced physical debit card issuance by 30%. All of these reinforces our commitment to delivering the best possible experience for our customers. In insurance, we continue to focus on enhancing the digital experience for our clients and expanding our sales from digital channels. The development of internal capabilities has allowed us to increase digital self-service to 70% and the digital premiums to grow 25% in the last year. In Wealth Management, we are committed to improve our digital adoption to 38%. Additionally, digital transactions now represent 58% of all activity on the platform. Moving on, solid results with double digit growth in insurance and wealth management. On slide 22, we continue to build contractual service margin, which increased 15% year over year. Growth was mainly driven by annuities, up 19%, followed by Individual Life, up 17%. Individual Life remains a key priority for us given its low penetration and high profitability. While our traditional channels continue to perform well, we are also broadening distribution and refining the product to reach new segments and sustain growth. On investments, results were affected by higher inflation which impacted a portion of the portfolio linked to inflation. This same effect flows through insurance results largely netting out at the bottom line. Excluding this impact, the investment portfolio return would have been 6.3% in line with our historical levels. On Slide 23, Intelligo continues to show solid momentum Assets under management have grown at a double digit pace reaching again new highs and now totaling 9.5 billion including deposits. Fee income continues to improve, up 9% year over year adding to the positive trend in results. Now let me move to the final part of the presentation where we provide some key takeaways. Before we move on to our operating trends, we would like to summarize where we are focusing our growth efforts. The consumer portfolio was flat quarter on quarter, yet it posted 5% year over year growth. April has seen a clear acceleration in growth which we expect to continue in the coming months. At the same time, the mortgage segment continued its positive trajectory with 8% growth continuing to gain market share now above 16%. In commercial banking, we have seen important growth in small business which increased by 29% year over year. We continue to see a strong potential in this business given our current small market share. The commercial portfolio as a whole grew 8% year over year, when adjusted by FX. This strong performance is supported by our strategy to deepen relationships with key mid sized company clients and leveraging synergies with EasyPay, enhance our value proposition. In insurance, we are maintaining our focus on long term products as individual life has shown encouraging growth this year. Finally, in wealth management, assets under management continues to grow at a healthy pace, up 13% year over year reaching a new record level, a reflection of both market performance and continued client engagement. On Slide 26, let's go through our first quarter operating trends. Our ROE for the first quarter was 19.4% above our guidance for 2026. Given this report this result, we see our year end ROE above 17% rather than around 17% as stated in the previous call. In terms of loan growth, we were up 5.6% or close to 7%, adjusting for FX appreciation. We continue to expect high single digit growth for the full year. Finally, we remain focused on efficiency at IFS Our cost to income ratio was below 37% within our guidance range. Let me finalize the presentation with some key takeaways. First, we saw a robust start to the year. Second, our higher yielding loans continue with a positive momentum, especially in the small business segment. Third, we continue to see sustained improvement in the risk adjusted NIM helping profitability. Fourth, we are strengthening primary banking relationships with our retail clients. And finally, our insurance and wealth management business continued delivering double digit growth. Thank you very much. Now we welcome any questions you may have. Operator: Thank you. At this time, we will open the floor for your questions. First, we will take the questions from the conference call and then the webcast questions. Followed by the 1 key on your touch tone phone now. Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the questioning queue, just press star 2. Again, to ask a question, please press star 1 now. For the webcast viewers, simply type your question in the box and click submit questions. We will pause momentarily compile a list of questioners. The first question will come from Ernesto Gabilondo with Bank of America. Please go ahead. Analyst (Ernesto Gabilondo): Thank you. Hi. Good morning, Luis Felipe, Carlos, and Michela, and good morning to all your team. And congrats on your results. My first question will be about the political outlook Can you provide us more color on the latest update on the presidential elections? When is the court expecting to decide who will be the second candidate and what is the next date we should be following. My second question is on the weather phenomenon of El Nino. So, also, you can provide us, like, the latest news on the probability of having a moderate or a strong El Nino this year And what should be the date or what should we be monitoring to think about this phenomenon of El Nino? And my third question is on your customer risk outlook. As you pointed out, it behaved much better than expected. You also mentioned that you have this risk appetite over high year loans, credit cards, and SMEs. And we should be thinking a gradual higher cost to risk. But I remember last time you were guiding around 2.5% for the year. So after a very, very good first quarter, just wondering how do you see the cost of risk in 2026? And then how should we be in the next years? Thank you. Lord Luis Felipe Castellanos Lopez-Torres: Okay, Ernesto. Thanks very much for your questions. Let me go, some of them, and then I will pass it on to the team. On the political outlook, actually, it is it is it is not exactly clear when. there is an expectation that probably by the fifth of this month, the 100% of the count will be completed. Right now, it is very close. it is at 99.755%. So it is very close. The difference is only, like, around 15 thousand votes. So I guess, it will be prudent to wait until everything is discounted. So I guess the next day to really get important news is when this 100% is completed. Again, as mentioned, I have heard that 1, it could be as early as this Friday, the fifteenth, but the entities are doing their work. No? And so I guess that is what we need to pay attention. And then that second round is scheduled for June 7, so that is probably another important date where we need to focus on because obviously, that will define who comes in office afterwards. So that is what we have on the political outlook so far. In terms of El Nino, I was looking at some numbers and the chances of a moderate El Nino have increased as we reported in the presentation. There were around 21 percent probability in the in January and has increased to 43 percent. However, that situation can change with within this changing over the years, but we are preparing, you know, We have lots of experience in terms of managing this in terms of what we need to do with our customers or clients. And the effect would probably not be very it felt very strong during the course of this year, but probably we will see some additional hot weather it is maybe some drops on the on the on the South Of Peru. Hot weather on the North Of Peru, but really the impact should come more towards the latter part of the year or early next year. No. that is when the actual weather phenomenon should hit. But something that we are paying attention and, obviously, getting ready to be prepared. And then in terms of cost of risk, yeah, I guess, also, it was mentioned during the presentation. Like, the system as a whole is behaving very well in terms of cost of risk, and in particular, Interbank is having a very good result given all the measures that we have been taking. For the outcome of the year, let me pass it on to Carlos. Maybe he can elaborate a little bit more around our strategy for continue growing in higher yielding growth, which is the 1 that is going to at the end impact how fast the cost of risk should go back to more normal levels. You know? So, Carlos, if you can help me there, it will be great. Carlos Tori Grande: Yeah. Thank you, Felipe. Hello, Ernesto. So the way we look at it is not that we have obviously, we do not have a target to increase the cost of risk. The way we look at it is the yield on loans. You Usually, when you go higher yielding loans, the cost of risk goes up together and you manage that spread. You So we have been obviously getting better with our models and being able to assess risk better. But, also, as Luis Felipe mentioned, the whole system has had low cost of risk over the last I would say, 5 or 6 months. Because of end of year gratifications, the AFP withdrawal. So it is been a very liquid system for consumers, and that has 2 effects. Okay? So 1 is, obviously, oral risk goes down. Also on credit cards, on revolving credit cards, not only risk goes down, but our customers repay a larger amount of their credit card bills. So the balance goes down as well. So terms of that, it kind of hurts the yield a little bit, but also improves the risk. As long as the equation is the yield is still there and we are it is a profitable loan We are fine with that, and that is what has been happening. What we foresee over the next couple of months is that risk will go up a little bit as liquidity kind of there is a way and we will continue to see growth. that is what we have seen in April. April, we have seen more growth than we saw on the previous months, but risk is still controlled. So those are the 2 levers that we look at, and we would expect a little bit more growth And that is it will not be a fast increase to cost of risk, but our appetite to risk is in the 2.5 or 2.8 range, no long term, not in the short term. I do not know if that answers the question. Analyst (Ernesto Gabilondo): Oh, excellent. Perfect. Thank you. Thank you so much. So just the last question in your ROE expectations. As you mentioned, this year, the ROE could be above your previous guidance and now could be above 17% for the year. I know that the quarter was also favored by financial transactions. So especially market with revenues and other income. So just wanted to know or to understand if that could be recurring and also what will be the drivers behind your new guidance? Lord Luis Felipe Castellanos Lopez-Torres: Okay. Thank you, Ernesto. Well, that the is basically the strong start to the year. As mentioned during the call, no, we are cautiously optimistic. The risks for the ROEs to the upside. As Michela mentioned, no, we were guiding at around 17%. No, we feel more comfortable saying that it is going to be higher than 17%. However, it is early in the year. There are lots of moving parts still. We have the international environment that creates some volatility. We have the political situation. And obviously, we need see what happens with El Nino. So we would not we would not wanna move strongly around that. But obviously, the beginning of the year, and the trends that we are seeing put us in a very optimistic situation in terms of what can 2026 deliver for us. No? The drivers are that are the low cost of risk that we are seeing. The economy of Peru is growing. it is expected to grow at around 3%. Commodity prices continue to be very strong. That creates a positive momentum for Peru as a whole. Business confident and in and the investment environment started very positive in the year. Let's see how that evolves as the political landscape starts to clarify. And so those indicators are the 1 that are driving the increase in expectation of our ROE. Perfect. Thank you very much. Operator: Thank you. The next question will come from Yuri Fernandes with JPMorgan. Please go ahead. Analyst (Yuri Fernandes): Congrats Micheal, Luis Felipe. I will try to explore some of the topics that Ernesto did not touch in his few questions here. Maybe on margins, if you can provide a little bit of more color I think the mix towards more consumer loans may help, you know, the means to move up. And I think that is part of the explanation. Right? Risk adjustment means going up. So if cost of risk moves up, NIM should also go up. Can you help us quantify the magnitude of that? Are you talking about kind of 10 bps risk adjusted going up over the years, 20 bps, 30 bps? Just trying to understand, you know, how powerful the combination of margins minus cost of risk maybe here, for the company. Then I can ask a second question. Thank you. Lord Luis Felipe Castellanos Lopez-Torres: Hey, Judy. Yeah. You are right. In terms of, trends, that is correct. No. As cost of risk, goes up, yields should go up, and the overall impact should be positive To go over specific numbers, let me pass it on to Michela to see if she has like, the model or more detail on the numbers. If we can provide them. Michela? Michela Casassa Ramat: Good morning, Yuri. Listen. We did have a budget, you know, with NIM, cost of risk, and risk adjusted NIM. But as you can see from the numbers now that we are showing this first quarter, the numbers have been substantially better, especially in terms of cost of risk. No? So at the end of the day, the risk adjusted NIM is better than what we expected. What we, expect let's say, the rest of the year is a gradual, let's say, recovering NIM, no, which has not happened this quarter, because still the portfolio mix has not changed that much, no, before because of the excess liquidity and the private pension funds withdrawal. So 1 thing, not that we should see in the coming month at a certain moment is that yield on loans should start to pick up because of the mix. No? And at the same time, also cost of risk. So risk adjusted NIM will be, like, stable or roughly, you going above the level that you see there, but the components should start to go up. So both hidden loans and cost of risk. No. Analyst (Yuri Fernandes): Super clear, Miguel and Felipe. And if I may ask second 1. Just on insurance, I think that was a highlight this quarter. There was I guess, some help on inflation. But thinking ahead, you know, what should I expect about this business unit? When I look to your premiums, they are growing. But the number of insurance clients, I think there is a slide on your presentation about this, it caught my attention that the number of clients is mostly stable, growing, I think, 1% year over year. That is a little bit less than what we see on wealth and banking. So, again, it was a good quarter. Premiums are fine. You know? You had, like, financial income. But looking ahead, you know, like, how should we think about insurance? I guess part of my concern is, maybe this subsidiary is not doing as good as the other ones given the number clients, but maybe I am just wrong because, the patient withdraws, maybe they explain part of the annuities weakness here. So if you can help me understand what should the we expect for insurance, I would appreciate. Thank you. Lord Luis Felipe Castellanos Lopez-Torres: Okay. Yeah. Yuri, so yeah. I see you are referring to the fact that we closed March 2025 with 3.2 million customers in insurance and 3.3 in March 26. No. So those are probably that is what you are referring. We have Gonzalo Basadre here, which will help us. The drivers of insurance overall are very strong. As you have seen, premiums are growing double digit. The result from investment coming very, very well as well, and it is a very efficient operation. But in order to address specifically your question, Gonzalo can help us with that. Gonzalo Basadre: Yes. Hi. Hi, Yuri. I think that the confusion lies in that total number of clients, as you as you have seen, is not growing very fast. But that is because a big proportion of our clients are bank assurance clients, which are very big in number, but very small in individual revenues. what is growing very fast is private annuities, life insurance, which have a smaller number of clients, with a much bigger premiums. In total, as you have seen, premiums are growing very fast. So what we should expect for the following months is premiums growing very fast, but number of clients not so much. Just because most of them come from bank insurance. But that does not mean that the business is not growing at a very healthy pace. I do not know if I explained. Analyst (Yuri Fernandes): No. No. It helps. Like, that was exactly it. Like, Premo's growing. 35, clients not growing, but it is clear. So, basically, the growth of bank client in the end also help you to grow your premiums on the insurance division, right? So you do not need to have, like, let's say, proper insurance clients for you to keep delivering the premium growth. that is basically it. Right? I do not I mean, bank clients are not growing as fast as are private annuities and life insurance clients. And that is why total number does of clients is not growing very fast. But premiums do grow very fast just because average premiums of private annuities on life is much bigger than the back insurance clients. No. that is clear. No. Thank you very much, guys. Thank you. Thank you, Yuri. Operator: The next question will come from Carlos Gomez-Lopez with HSBC. Please go ahead. Analyst (Carlos Gomez-Lopez): Hello. Good morning, and congratulations on the results, and thank you for your detailed presentation as always. So I have 2 questions more for the long term. The first 1 is regardless of the outcome of elections, what do you think that we should expect in terms of growth in your planning for the medium term for the next, let's say, 3, 5 years? What is it that you are expecting in terms of such as asset growth, perhaps returns, but mostly asset growth? For the for the medium term? And second, are there any regulatory changes that affect clean or the between clean and YAPI that you expect in the next year or 2 years? Thank you so much. Operator: And, Carlos, thanks very much for your question. Lord Luis Felipe Castellanos Lopez-Torres: Regarding me medium long term growth, the way we see it is specifically for loans, let's say, or assets our take is that the system should be growing between 2x and 3x GDP. Okay? So as long as GDP continues to grow 3 plus or recovers, we should see low single digit or started to get into low double digit sorry. High single digit or starting to get into that low double digit growth. And particularly Interbank, for instance, has always focused on gaining a little market share given that we have opportunities in certain specific segments. No? So probably our growth will be above what we have as an expectation for the system as a whole. Premiums, on the contrary, probably growing faster because the level of penetration of premium improved opportunities that bring insurance businesses in Peru, particularly in life and annuities, which is our area of focus, has strong under penetration. So we expect that for some years, we will continue to see double digit growth. And then in terms of our private bank as well, all these years of continued growth are creating an emerging wealthy class which was the segment that we are catering specifically for our wealth management segment, and that also should bring low double digit growth at least for the year to come. No? So that is kind of our take on the way we see growth for the upcoming years, medium to long term. And then in terms of, PLIN and Yape, I did not get very well your question. I think that dynamic is as we have seen. Both getting traction Peruvians using more and more digital solutions and the payment ecosystems are being reinforced PLIN continues to get traction We are starting to build some use cases into our solutions like what Michela mentioned, no, like a that had that great or credit card related to clean. So we see this as a very important opportunity for us as well. I do not know, Carlos, you wanna compliment anything specific around this dynamic. Analyst (Carlos Gomez-Lopez): No. Just to follow your pulse up. Sorry. That can be. Sorry. Go ahead. Too many Carlos in the call. Lord Luis Felipe Castellanos Lopez-Torres: Yeah. Carlos, please. Go ahead. Go ahead. No. No. Okay. Carlos Felipe was talking about clean. Carlos Tori Grande: So, yeah, the other avenue of growth for clean is the instant payments on WhatsApp. No? So Clean WhatsApp is obviously something that only Interbank has, and we have been growing with that as well. Operator: But I understand, Carlos, your question was more related to regulation that affects YAP and clean. Analyst (Carlos Gomez-Lopez): I do not know if that was your question. Yeah. Yeah. that is my question. I mean, as both companies, start to monetize the strong network that both of you have created, I would expect that perhaps at some point, the regulator might want to have a look at how, you know, that monetization takes place and with an there might be new rules or force you to share things in a way that you have not in the past. If you if you are I do to encounter any constraints as you as you deepen your monetization of PLIN. Carlos Tori Grande: So the regulation regarding PLIN and Yape was given, I believe, it is, like, 2 years ago or 2 years and a half where it asked us to interoperate. No? So PLIN can send to Yapi, Yape to PLIN. And that is the regulation. that is a framework. No? And there is updates to that in terms of SLAs and stability and stuff like that, and they continue to monitor and revise and the regulator is a central bank and that is working. In terms of new regulation, do not foresee anything in the in the short term. What will possibly and this is something that we will we will see what happens, but what possibly may affect the way we interact is that the central bank will start offering a new let's call it highway. You know? So they are starting with tap is a service provided by UPI from the Indian central bank So the central bank will offer a highway where we can interconnect. So if PLIN wants to send to Yape or Yape to PLIN or other players, in the market, we can go through these I am I am calling it highway of the central bank. But it will not be, as far as we know, subject to regulation. There will be informants in terms that we all have to be connected, but we do not necessarily have to use it. The idea of the central bank is to offer this highway in better terms or better or more use cases to incentivize the different issuers to use the highway. But it should not be or as far as we know, there will be no regulation saying we have to go through it. No? So it is not I would not consider additional competition, but it will be an additional rail or highway through which we can interact. And the and just to complement that, it would probably be the first the first use of open banking. So the idea is that the rail will be able to source funds from different accounts to send your transaction. Well, that is the idea that should come online I think the target date is December. Probably, most banks will not go into production in December because it is just a very high transactional month. Probably January 2027 is a more realistic time frame. Analyst (Carlos Gomez-Lopez): that is very clear and very complete. Thank you so much. Sure. Thank you, Carlos. Both cards. Operator: The next question will come from Alonso Aramburú with BTG. Please go ahead. Analyst (Alonso Aramburu): Yes. Hi. Good morning. Thank you for the call. Just following up on your comments on loan growth in April that you are seeing acceleration. Just curious, I mean, where are you seeing that? Is it broad based? Are you referring more to your consumer and credit card book? And what is driving that? Is it really more appetite from the bank, or is it normalization of liquidity, or maybe a combination of the 2? And then a second question regarding your acquisition of Infinance XP. Just curious, I know it is it is only a month since the acquisition, but if you can provide some comments on the initial reaction to the app from the public, how is that how did that launch? is it going? Thank you. Lord Luis Felipe Castellanos Lopez-Torres: Yeah. Okay. So thank you, Alonso. On your first question, I think it is a combination of both. No? I think the money from the pension funds, it is starting to, like, to be used already. So demand is starting to get back into the system. No? We are we are seeing that growth in the consumer financing, particularly, you know, our small business segment. For us, it is more driven by the fact that we are building value proposition and going out to look for clients given the low market share that we have over there. And then in terms of commercial banking, the activity is mixed. No? So we have not seen strong growth there, but it is it is very seasonal. No? So let me it on to Carlos so he can complement this part of the question, and then I will return to go over your SIP question. Tori. Carlos Tori Grande: Thank you, Luis Felipe. I think you mentioned most of it Hola, Alonso. How are you? So, yes, I it is a mix. there is a little bit less liquidity, so we are having as I have been mentioning over the calls, our value proposition has been having traction, and we have been seeing more transactions increase. What has happened over the last few weeks is maybe prepayment of our credit cards is not as high. No? So that gives you a little bit of growth. But, also, we have put in line 1 or 2 good models that target the high risk or a lower segment. Which has allowed us to have a little bit more penetration there without increasing risk too much, and we have started to see some of that. So it is a little bit appetite, I would say 50% appetite and 50% market. And we will we expect to continue to see that over the next couple of weeks and months. So yeah. And what we really mentioned in commercial banking, that is it. We it is as he mentioned, but we continue to see good growth in the lower segment of banking also, Banca Negocios. Is doing well as well. Good growth. Lord Luis Felipe Castellanos Lopez-Torres: You. Felipe, do you want to take the SIP? Yeah. Yeah. On the SIP, you are you are right, Alonso. Not only the transaction has been recently executed, but also the launch of SIP has been very recent as well. it is it is having good traction. It is it is a couple of both. it is acquiring new customers and new customers are coming in better than we expected. And then it is a matter of migration of people that used to have the old solution Financiera OS solution, and then you had some people that use Agora. So now this new app consolidates like, basically 3 things. Now loyalty, consumer financing, and also a payment. Solution. No? And we had certain expectations in terms of what we were willing to achieve at launching of the new brand and new solution. What I can tell you it is surpassing the expectations that we had. No? So I think we are in a good start. And as we have discussed, this is an early stage, it is probably a very interesting data solution that we are bringing to market where within retail, it will require still time and investments in order to pursue the growth that we are thinking it could have. So it is more like a medium to long term where we will start seeing the actual results of what we are imagining on this on this front. No? But to go over your specific question, the launching has been successful in our view and the traction that is getting is exceeding expectations that we had. Great. Thank you, Felipe and Carlos. Thank you, Alonso. Operator: Next question will come from Andres Soto with Santander. Please go ahead. Analyst (Andres Soto): My question is regarding your digital strategy and the question has to components. 1, a philosophical 1. I understand there is an app under in finance which is the 1 that they those users use to go to the stores And then you mentioned in the call, there is another app under EasyPay, which is the 1 that I guess you are giving to your SME customers, and then you have, PLIN, which is the 1 that we use to interconnect with other banks. My question is, is this by design? Are you planning to continue keeping those apps separate or is it the plan to for at some point to migrate to an ecosystem where your customers can go to cover all the financial needs. And the other part that is not philosophical from the question is regarding investments. I would like to understand what point in the cycle are we in terms of digital investment. You reiterate your, guidance for cost of income of 37%. Are you expecting some additional pressure in 2027, or you believe that your expenses in digital can be covered under these very stringent efficiency ratio? Thank you very much. Lord Luis Felipe Castellanos Lopez-Torres: Andres, thanks very much for your, you know, something about question, Andre, and your other question. On the philosophical side, it is part of this strategy. Actually, well, Lean is not an app, as you know. Lean is like a highway that connects payment possibilities within customers. So that is not basically a highway. You have to see it that way. No? And we have talked about it. it is like sell in The US. Okay? And then you have the in finance app or ZIP is a different play. it is a consumer financing it is a joint venture between us and in retail. It will have its own customers. it is probably going to be integrated at some point through the ability of doing certain things that move you between different apps. But right now, the way it is it works and the way it is structured, it is a different solution serving specific customers that have very specific needs that we see that is boosted by the, opportunities and potential that having your regional as a partner brings. No? And then you have the small businesses app, which is a separate app, which caters to its own segment. With other specific solutions, more related to merchants, and there, the EasyPay and the and the interbank app for those types of customers is being integrated as a single 1. No? So, yeah, philosophically, we have different place for different segments and different strategies. No? that is that is the way we are designing this. If they are at some point all going to be converted into a single app, I do not see it right now based on the information that I am seeing. But probably we will build communication ways in order to provide different services through APIs or something like that. No. But that is the way we are designing the future so far. And then in terms of investments, that is a very interesting question. I do see that the pressure for investments in digital, in technology, in cybersecurity, in GenAI will continue. This is not something that we do data transformation and it ends at some point. I think the cost what we are doing is basically following customer's expectations. And customers' expectations are basically increasingly demanding. So the level of investments that we need to continue deploying in all of our segments, including banking, including insurance, including wealth management and payments, is very demanding as well. So I think that the ability to manage the efficiency ratio at around 37% will be what guides us for the next couple years. And then at some point, we will get another level of scale that will probably allow us to think about levels below 35%, but that is not in the in the in the medium term. that is probably more a long term view. that is very clear, Luis Felipe. And if I may ask a follow-up on PLIN. Analyst (Andres Soto): Once the central bank UPI system is up and running, is there still a place for PLIN? What will be the use case for this, which is, as you mentioned, just connecting with other banks? Okay. Lord Luis Felipe Castellanos Lopez-Torres: there is a space for PLIN. Probably, our strategy might change. But I guess it is having 2 highways probably We will we will need to see which 1 is more efficient and which 1 is the 1 that serve our purposes better. But I do not see that 1 will completely replace the other. Probably, that will be complementary. Carlos has been very involved in our payment strategy Maybe he can complement this view as well. No? Carlos? Carlos Tori Grande: No. I agree. So first, we start with the fact that PLIN is not an app. it is a brand and a highway, as Felipe mentioned. Within that highway, technologically, you can send funds and use PLIN and send funds through Visa Direct or you can send it through the local chamber exchange chamber. Those are the 2 highways we can use today technologically. UPI will add a third 1. So we can go through UPI. And we can brand it clean or we can brand it tap. The transaction will still be from the interbank app to customer that receives it at interbank or at a different bank. So that will not change, but the fact that there will be additional use cases and the central bank is very ambitious on how they will grow this in the next couple of years. We will continue to assess our strategy and see what we do. But as Luis Felipe mentioned, this at least the first round, will be absolutely complementary. To what we have to what we have now. An additional highway. Understood. You, Carlos, and thank you, Luis Felipe. Analyst (Andres Soto): Congratulations on the results. Thank you, Andre. Nice to see you, Andre. Nice to talk to you. Ivan Peill: At this time, we will take the webcast questions. I will now turn the call over to Mr. Ivan Peill from Inspire Group. Thank you, operator. Analyst: The first question comes from Shane Matthews of White Oak. Investors. What should we expect cost of risk for the banking business for the year? And were there any large recoveries in Q1 which led to lower provisions for the bank? Or is this the normal run rate going forward? Lord Luis Felipe Castellanos Lopez-Torres: Okay. I think we have we kind of answered this question throughout the course of the after the day. But just to summarize, I do not think we have had any specific 1 timer I think that is as was mentioned throughout the call, is a system as a whole is behaving better in terms of risk. The low cost of risk is particular for Interbank, also we are seeing in the in the business as a whole. And then the level of cost of risk for the year will depend on the speed, basically, that our higher yielding book is built. No? So that is the expectation that we have. As mentioned, our budget has been outbid by what we are seeing in the first quarter, and we do expect that probably as the book in higher yielding lows continues to build up, cost us of risk should marginally start to go up. And the next question? Operator: The next there are no further questions at this time. I would now like to turn the call over to the operator. Thank you. There appear to be no further questions on the audio side. Would like to turn the floor back to Ms. Kasassa for any closing remarks. Michela Casassa Ramat: Okay. Thank you very much. Thank you again, everybody, for joining our call, and we will see each other again for the second quarter results. Stay safe. Bye. Operator: This concludes today's conference call. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. IFS Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly net income of 602 million soles, attributed to disciplined execution across the platform and a favorable macro environment in Peru. Performance was bolstered by a low cost of risk and improving risk-adjusted NIM, particularly within the Interbank segment. Loan growth focused on higher-yielding segments, which expanded at a high-single-digit pace despite headwinds from pension fund withdrawals. The strategic acquisition of Infinance XP (formerly Financiera O) aims to integrate IFS's financial capabilities with InRetail's physical reach to create a scalable digital payments ecosystem. Management attributes the strong start to the year to resilient private spending and favorable commodity prices, which supported a GDP growth of approximately 3.6%. Digital transformation remains a core driver, with the launch of the Plin credit card and a new small business app deepening primary banking relationships. Revised full-year ROE guidance upward to above 17%, reflecting the strong Q1 performance and positive momentum in the Peruvian economy. Guidance assumes a gradual normalization of the cost of risk as the consumer and small business portfolios grow to represent a larger share of total loans. The outlook remains subject to volatility from international energy prices, domestic political uncertainty, and potential weather disruptions from El Ni￱o. Management expects high-single-digit loan growth for the full year, supported by an acceleration in consumer credit observed in April. Strategic focus will remain on scaling the 'SIP' digital platform to enhance customer experience in everyday payments and consumer credit. Completed the acquisition of EXP Holding (Infinance XP) for $130 million in a 50/50 partnership with InRetail Peru Corp. Identified a potential risk from a moderate coastal El Ni￱o, with the probability increasing from 21% in January to 43% by the time of the call. Noted that a bond issuance in January had a temporary negative impact of approximately 20 basis points on NIM, which is expected to dissipate later in the year. Management highlighted that while political uncertainty exists due to the electoral cycle, it has not yet materially impacted underlying economic fundamentals. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that current low levels are partly due to high liquidity from pension withdrawals, which led to higher repayment rates. Long-term cost of risk appetite is targeted in the 2.5% to 2.8% range as the portfolio mix shifts back toward higher-yielding assets. Management views the upcoming central bank 'highway' (based on India's UPI) as a complementary third rail rather than a replacement for PLIN. The new system will likely facilitate open banking use cases, allowing funds to be sourced from various accounts for a single transaction. The discrepancy between flat client numbers and 35% premium growth is due to a shift toward high-value private annuities and life insurance over high-volume, low-premium bancassurance. Management expects premium growth to continue outpacing client acquisition as they focus on under-penetrated, high-profitability segments.

LIMA, Peru, April 15, 2026 /PRNewswire/ -- Intercorp Financial Services Inc. ("IFS" or "the Company") (BVL/NYSE: IFS) announced today that it will host its First Quarter 2026 earnings conference call & video webcast presentation. The conference call will take place on Tuesday, May 12, 2026, at 10:00 a.m. E.T. / 9:00 a.m. Lima Time. Presenting for IFS: Mr. Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services Ms. Michela Casassa, Chief Financial Officer, Intercorp Financial Services Mr. Carlos Tori, Chief Executive Officer, Interbank Mr. Gonzalo Basadre, Chief Executive Officer, Interseguro Mr. Bruno Ferreccio, Chief Executive Officer, Inteligo The conference call can be accessed through the following numbers: From within the U.S.: +1 866 807 9684 From outside the U.S.: +1 412 317 5415 Conference ID: IFS There will be a live video webcast presentation on this event available at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=pRCbTQIx A replay of this conference call will be available shortly after its conclusion at www.ifs.com.pe Intercorp Financial Services will release First Quarter 2026 results on Monday, May 11, 2026, after the market close. In accordance with IFS' corporate disclosure policy, the Company's Quiet Period began on April 20, 2026, and will conclude after the First Quarter 2026 financial results have been published. During the Quiet Period, IFS will not disclose any financial information or comment on its financial results or operations. About the Company: Intercorp Financial Services Inc. ("IFS"), is a company incorporated under the laws of the Republic of Panama, and has securities listed on the Lima Stock Exchange and the New York Stock Exchange. IFS, through its subsidiaries, is a leading provider of financial services in Peru. IFS' main subsidiaries are Banco Internacional del Per, S.A.A.-Interbank ("Interbank"), Interseguro Compa￱￭a de Seguros, S.A. ("Interseguro") and Inteligo Group Corp. ("Inteligo"). Interbank is a full-service bank providing general banking services to retail and commercial customers. Interseguro is a leading insurance company, providing annuities, individual life insurance, bank assurance, and direct sale of retail products including the Peruvian mandatory traffic accident insurance. Inteligo is a fast-growing provider of wealth management services through Inteligo Bank Ltd. and Interfondos, as well as brokerage services through Inteligo SAB. View original content:https://www.prnewswire.com/news-releases/intercorp-financial-services-inc-to-host-first-quarter-2026-earnings-conference-call--video-webcast-presentation-302743683.html

This article first appeared on GuruFocus. Net Income: PEN1.9 billion, a 49% increase compared to the prior year. Return on Equity (ROE): 16.8% for 2025, would have been 18.5% excluding Rutas de Lima impairment. Higher-Yielding Loans Growth: 8% year-over-year. Risk-Adjusted Net Interest Margin (NIM): Increased by 50 basis points to 4% in the last quarter. Cost of Risk: 2.1% for the year. Cost of Funds: Near 3%. Retail Primary Banking Customers Growth: 11% increase last year. Insurance Written Premiums Growth: 61% year-over-year, driven by private annuities. Assets Under Management in Wealth Management: Reached new record highs. Loan Portfolio Expansion: 4% year-over-year, 6.5% excluding FX effect. Mortgage Portfolio Growth: Over 8% year-over-year, gaining 10 basis points in market share. Small Business Segment Growth: 25% year-over-year. Deposits Growth: 5% year-over-year, 9% excluding FX impact. Cost-to-Income Ratio: 36.8% at IFS. Digital Retail Customer Base: Increased from 81% to 84%. Capital Ratios: Total capital ratio at 16%, core equity Tier 1 ratio at 12.5%. Warning! GuruFocus has detected 2 Warning Sign with IFS. Is IFS fairly valued? Test your thesis with our free DCF calculator. Release Date: February 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Intercorp Financial Services Inc (NYSE:IFS) reported a record net income of PEN1.9 billion for 2025, marking a 49% increase compared to the previous year. The company achieved a strong return on equity (ROE) of 16.8%, even after accounting for the Rutas de Lima impairment. Interbank, a subsidiary of IFS, achieved record earnings of PEN1.4 billion, supported by a decrease in cost of risk and an increase in risk-adjusted net interest margin (NIM). IFS's insurance business, Interseguro, continues to deliver solid double-digit growth, with written premiums growing by 61% year over year. Inteligo, the Wealth Management segment, achieved double-digit growth in assets under management, reaching new record highs. The Rutas de Lima impairment had a significant impact on IFS's financial results, with a PEN205 million impairment recorded in 2025. Despite improvements, the Consumer segment still faces challenges in reaching its targets, particularly due to pension fund withdrawals. IFS's cost-to-income ratio increased to 36.8% due to strategic investments in technology and talent, impacting overall efficiency. The company's loan growth was affected by excess liquidity in the market due to pension fund withdrawals and severance deposit releases. IFS's market share in consumer loans has decreased by approximately 1% over the past 12 months, indicating competitive pressures. Q: Will there be further impact from Rutas de Lima in 2026? A: Luis Felipe Castellanos Lopez Torres, CEO, stated that with 80% of the impairment already accounted for, they do not expect further impact in 2026. Gonzalo Jose Basadre Brazzini, Deputy CEO, confirmed that the current valuation is conservative and no additional charges are anticipated. Q: What are the expectations for loan growth and asset quality, particularly in credit cards and personal loans? A: Carlos Tori, CEO of Interbank, noted that higher-yielding loans like credit cards and personal loans began growing in the latter half of 2025. They expect this trend to continue in 2026, with a slight increase in cost of risk as they pursue a more efficient profitability-risk frontier. Q: How should we think about operating expenses growth in 2026? A: Luis Felipe Castellanos Lopez Torres, CEO, indicated that they will continue investing in technology and strengthening teams across their businesses, suggesting a similar trend in operating expenses growth as seen in 2025. Q: Can IFS achieve a sustainable ROE closer to its peer Credicorp's target of 20%? A: Luis Felipe Castellanos Lopez Torres, CEO, mentioned that while their medium-term target is 18% ROE, achieving 20% is possible if the Peruvian economy performs well. The pace of recovery in higher-yielding loans will be crucial for reaching this target. Q: What is the outlook for NIM in 2026? A: Michela Casassa Ramat, CFO, expects a slight increase in NIM during 2026, driven by growth in higher-yielding loans and further improvements in the cost of funds, although not as significant as in 2025. Q: How do you view the current upswing in retail demand, and is it sustainable? A: Luis Felipe Castellanos Lopez Torres, CEO, believes the upswing is supported by strong macroeconomic indicators in Peru. However, the release of pension funds has temporarily dampened loan growth, which they expect to pick up in the second quarter of 2026. Q: What is the market share of PLIN, and how is it performing? A: Carlos Tori, CEO of Interbank, estimated PLIN's market share at about 15% of the P2P and P2M market, with Interbank holding over half of that share. PLIN is experiencing healthy growth in users and transactions. Q: What are the key risks to watch out for in the election year? A: Luis Felipe Castellanos Lopez Torres, CEO, highlighted potential political risks, such as the rise of non-market-friendly candidates affecting investor confidence and delaying investments. However, he remains optimistic about continued economic stability and growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.