IFS

Good morning, welcome to Intercorp Financial Services first quarter 2026 conference call. After the presentation, we will open the floor for questions. At that time, instructions will be given as to the procedure to follow if you would like to ask a question. You can submit online questions at any time today using the window on the webcast, and they will be answered after the presentation during the Q&A session. Simply type your question in the box and click Submit Question. It is now my pleasure to turn the call over to Mr. Ivan Peill from InspIR Group. Sir, you may begin.

Thank you, and good morning, everyone. On today's call, Intercorp Financial Services will discuss its first quarter 2026 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, Interseguro. Mr. Bruno Ferreccio, Chief Executive Officer, Inteligo. 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 didn't 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 InspIR Group in New York on 646-940-8843.

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.

Thank you. Good morning, and thank you all for joining our first quarter 2026 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. 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 Niño 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 IFS first quarter results, we delivered record quarterly net income of PEN 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 Izipay, strengthening our merchant franchise and capturing joint business opportunities with the bank. We're also enhancing our small business value proposition through our recently launched business app. 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 Inteligo to expand private annuities and with Interbank to advance integrated bancassurance solutions.

Inteligo, our wealth management segment, continues to grow at double-digit rate, reaching a new record in assets under management, thanks to our customers' 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, Gen AI, and innovation to improve productivity and customer experience. A highlight of this quarter was our strategic partnership with InRetail. As announced in April, IFS and InRetail agreed to acquire InFinance XP, formerly Financiera Oh!, through the purchase of IXP Holding for $130 million. We believe this transaction will strengthen our consumer finance and payments ecosystem by combining IFS' capabilities with InRetail's reach, a powerful combination to create a superior value proposition to enhance customer experience in everyday usage through a scalable digital platform.

We are committed to do 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 revenues 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 discipline investments. Now, let me pass it on to Michela for further explanation of this quarter's results. Thank you.

Thank you, Luis Felipe. Good morning, and welcome, everyone to Intercorp Financial Services' first quarter earnings call. We'd like to begin with our quarter leading messages. In the first quarter of 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 PEN 602 million, making 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%.

Four, 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'll start with a quick update on our latest acquisition. InRetail Perú Corp. and Intercorp Financial Services announced the acquisition of InFinance XP, formerly Financiera Oh!. We executed the transaction through the purchase of IXP Holding Corp. from IFH Retail Corp. for $130 million, implying a 1.19 price over book value multiple. Following the closing, InRetail and IFS each own 50% of IXP Holding.

Additionally, we wanted to mention that as part of InFinance digital strategy, they've recently launched Sip, an app that brings together financial products, payments, and the loyalty program in one application. On slide four, we wanted to highlight three 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, PEN 1.8 billion in loans, and PEN 1.5 billion in deposits. Second, we're combining IFS' solid financial position and integrated capabilities within InRetail's leading retail platform, which has more than 4,000 stores nationwide to accelerate adoption and distribution. Third, we're 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 six, let me start with a brief update on the macro environment. We enter 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 picked 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 non-primary sectors such as construction, commerce, and services, even though political uncertainty related to the presidential elections could slightly slow the pace. Monetary policy remains supportive, with the reference rate at 4.25, which is 50 basis points above, 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 twelve 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 PEN 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 the 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 Niño, 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 eight, 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, the bank's ROE improved to 19.5%. Interseguro and Inteligo 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 nine, you can see that IFS revenues grew 10% year-over-year. At the bank, top line growth was up 8% this 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 better insurance result in life and annuities. At Inteligo, revenues increased 34%, reflecting steady fee growth in line with higher assets under management. Investments performance also improved in the quarter, partly reflecting 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're 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 Gen AI capabilities. We're also investing in leadership and talent across key teams because people remains 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, mid-sized companies, and small businesses with this last one 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-over-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 come 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, mid-size 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 three times that level. Over the past year, disbursement have doubled, reflecting the strength of our enhanced value proposition. We've recently launched our new business banking app for small business, which now brings together both Interbank and Izipay functionalities in one 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 four 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, non-performing 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 strengths 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. Reported NIM declined by 10 basis points versus last quarter, but it remains 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 as 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 effects.

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 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 Izipay 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 Izipay as both a distribution network for Interbank products and a source to increase flow. As mentioned, one key development has been the new banking app for small business, which allows us to deliver an integrated solution and maximize the value we bring to our clients. As such, the flows from Izipay 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 Izipay to Interbank expanded by 16% in the same period as Interbank's share of Izipay 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 7,000 affiliates by the end of March. Usage keeps accelerating with plineos 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 30,000 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% of 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%, 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 the agility and simplicity of our app and consistently strong service quality. 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 piloted temporary credit card blocking, increasing alert contactability by over 40%. We enabled digital tracking of customer requests, helping reduce customer assistance by 20%, and we reduced physical debit card issuance by 30%. All of this 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 Interfondos app, aiming to transform it from a simple transactional tool into a comprehensive digital advisor for our mutual fund clients. This has led to a steady rise in app engagement, with the number of digital users increasing 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 offering to reach new segments and sustain growth. On investments, results were affected by higher inflation, which impacted the 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, Inteligo continues to show solid momentum. Asset 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. 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'd 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 month. 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 Izipay to enhance our value proposition. In insurance, we're maintaining our focus on long-term products, as individual life has shown encouraging growth this year. Finally, in wealth management, asset 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. Finally, our insurance and wealth management business continue delivering double-digit growth. Thank you very much. Now, we welcome any questions you may have.

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. If you would like to ask a question, please press the star key followed by the one key on your touchtone 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 two. Again, to ask a question, please press star one now. For the webcast viewers, simply type your question in the box and click submit questions. We will pause momentarily to compile a list of questioners. The first question will come from Ernesto Gabilondo with Bank of America. Please go ahead.

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 on who will be the second candidate? What is the next date we should be following? My second question is on the weather phenomenon of El Niño. You can provide us, like, the latest news on the probability of having a moderate or a strong El Niño this year, and what should be the date or what should we be monitoring to think about this phenomenon of El Niño? My third question is on your cost of risk outlook.

As you pointed out, it behaved much better than expected. You also mentioned that you have this risk appetite over higher loans, credit cards, and SMEs, and we should be thinking a gradual, higher cost to risk. I remember last time you were guiding around 2.5% for the year. After a very, very good first quarter, just wondering, how do you see the cost to risk in 2026? How should it be in the next years? Thank you.

Okay, Ernesto. Thanks very much for your questions, let me go over some of them, and then I'll pass it on to the team. On the political outlook, actually, it's not exactly clear when. There's an expectation that probably by the 15th of this month, the 100% of the count will be completed. Right now, it's very close. It's at 99.755%. It's very close. The difference is only, like, around 15,000 votes. I guess it will be prudent to wait until everything is counted. I guess the next date to really get important news is when this 100% is completed.

Again, as mentioned, I've heard that it could be as early as this Friday the 15th, but the entities are doing their work, no? I guess that's what we need to pay attention. The second round is scheduled for June the 7th, so that's probably another important date where we need to focus on because obviously that will define who comes in office afterwards. That's what we have on the political outlook so far. In terms of El Niño, I was looking at some numbers, and the chances of a moderate El Niño have increased, as we reported in the presentation.

They were around 21% probability in January, and it has increased to 43%. However, that situation can change. We've seen this changing over the years, we're preparing, no? We have lots of experience in terms of managing this, in terms of what we need to do with our customers, our clients, and the effect will probably not be very felt very strong during the course of this year. Probably we'll see some additional hot weather. It's maybe some droughts on the south of Peru, hot weather on the north of Peru. Really the impact should come more towards the latter part of the year or early next year, no? That's when the actual weather phenomenon should hit.

Something that we're paying attention and obviously getting ready to be prepared. In terms of cost of risk, 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 outlook 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 one that is going to, at the end, impact how fast the cost of risk should go back to more normal levels, no? Carlos, if you can help me there, it will be great.

Yeah. Thank you, Luis Felipe. Hello, Ernesto. The way we look at it is not that we have. Obviously, we don't have a target to increase the cost of risk. The way we look at it is the yield on loans. Usually, when you go higher yielding loans, the cost of risk goes up together and you manage that spread, no? We've been obviously getting better with our models and being able to assess risk better. Also, as Luis Felipe mentioned, the whole system has had low cost of risk over the last, I would say, five or six months because of end of year gratifications, the AFP withdrawals. It's been a very liquid system for consumers, and that has two effects.

One is obviously overall risk goes down, but 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, the balance goes down as well. In 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 it's a profitable loan, we're fine with that, and that's 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 withers away, and we will continue to see growth. That's what we have seen in April.

April, we have seen more growth than what we saw on the previous months, but risk is still controlled. Those are the two levers that we look at. We would expect a little bit more growth. It won't 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 don't know if that answers the question.

No, excellent. Perfect, thank you, thank you so much. 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, especially market with revenues and other income. Just wanted to know or to understand if that could be recurring, and also what will be the drivers behind your new guidance.

Thank you, Ernesto. The driver is basically the strong start to the year, as mentioned during the call, we are cautiously optimistic. The risks for the ROE is to the upside as Michela mentioned, we were guiding at around 17%. We feel more comfortable saying that it is going to be higher than 17%. 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 to see what happens with El Niño. We would not want to move strongly around that.

Obviously, the beginning of the year and the trends that we're seeing put us in a very optimistic situation in terms of what can 2026 deliver for us, no? The drivers are that: the low cost of risk that we're seeing. The economy of Peru is growing and expected to grow at around 3%. The commodity prices continue to be very strong. That creates a positive momentum for Peru as a whole. Business confidence and investment environment, it started very positive in the year. Let's see how that evolve as the political landscape starts to clarify. Those indicators are the one that are driving the increase in expectation of our ROE.

Perfect. Thank you very much.

Thank you.

The next question will come from Yuri Fernandes with JPMorgan. Please go ahead.

Thank you, guys. Congrats, Michela, Luis Felipe. I'll try to explore some of the topics that Ernesto Gabilondo didn't touch in his few questions here. Maybe, 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 NIMs to move up, and I think that's part of the explanation, right? Risk-adjusted NIM, going up, so if cost of risk moves up, a NIM should also go up. Can you help us quantify the magnitude of that? Are we talking about kind of 10 basis points risk-adjusted going up over the years, 20 basis points, 30 basis points? Just trying to understand, you know, how powerful the combination of margins minus cost of risk may be here, for the company, and then I can ask a second question. Thank you.

Hey, Yuri. Yeah, you're right. In terms of trends, that's 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?

[Foreign language]. Good morning, Yuri. listen, we did have a budget, no, with NIM, cost of risk and risk-adjusted NIM. 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. At the end of the day, the risk-adjusted NIM is better than what we expected. What we expect, let's say, for the rest of the year is a gradual, let's say, recovery 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. One thing, no, that we should see in the coming months at a certain moment is that yield on loans should start to pick up because of the mix, no. At the same time also cost of risk. Risk-adjusted NIM will be like stable or roughly, no, going above the level that you see there.

The components should start to go up, so both yield on loans and cost of risk.

No, super clear, Michela and Luis Felipe. If I may a second one, just on insurance, I think that was a highlight this quarter. There was, I guess, some help on inflation. 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. Again, it was a good quarter. Premiums are fine. You know, you had like financial income. Looking ahead, you know, like, how should I 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 of clients. Maybe I'm just wrong because, the pension withdrawals, maybe they explain part of the annuities, weakness here. If you can help me understand what should, we expect for insurance, I would appreciate. Thank you.

Yuri, I see you are referring to the fact that we closed March 2025 with 3.2 million customers in insurance and 3.3 million in March 2026. Those are probably that's what you're referring. We have Gonzalo Basadre here, which will help us. The drivers of insurance overall are very strong. As you've seen, premiums are growing double-digit. The result from investment coming very well as well, and it's a very efficient operation. In order to address specifically your question, Gonzalo can help us with that.

Yes. Hi, hi, Yuri. I think that the confusion lies in that total number of clients, as you have seen, is not growing very fast, but that's because a big proportion of our clients are bank insurance clients, which are very big in number but very small in individual revenues. What's 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. 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. That doesn't mean that the business is not growing at a very healthy pace.

I don't know if I explained.

No, no, it helps. Like that was exactly it, like premiums growing 35%, clients not growing. It's clear. Basically, the growth of bank client in the end also help you to grow your premiums on the insurance division, right? You don't need to have like, let's say, proper insurance clients for you to keep delivering the premium growth. That's basically it, right?

I mean, bank clients are not growing as fast as our private annuities and life insurance clients, and that's why total number of clients is not growing very fast. Premiums do grow very fast, just because average premiums of private annuities and life is much bigger than the bank insurance clients.

No, that's clear. No, thank you very much, guys. Thank you.

Thank you, Yuri.

The next question will come from Carlos Gomez with HSBC. Please go ahead.

Hello, good morning, and congratulations on the results, and thank you for your detailed presentation as always. I have two questions more for the long term. The first one is, regardless of the outcome of the 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, three, five years? What is it that you're expecting in terms of, say, asset growth? Perhaps returns, but mostly asset growth for the medium term. Second, are there any regulatory changes that affect Plin or the relationship between Plin and Yape that you expect in the next year or two years? Thank you so much.

Carlos, thanks very much for your question. Regarding 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 two and three times GDP, okay? As long as GDP continues to grow 3% plus or recovers, we should see low single digit or starting to get into high single digit or starting to get into the low double digit growth. Particularly Interbank for instance, has always focused on gaining a little bit 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 in Peru, the opportunities that bring insurance businesses in Peru, particularly in life and annuities, which is our area of focus, has strong under-penetration. We expect that, for some years we'll continue to see double-digit growth. In terms of our private bank as well, all these years of continued growth are creating an emerging wealthy class, the segment that we are catering specifically for our wealth management segment, and that also should bring a low double-digit growth at least for the years to come, no. That's kind of our take on the way we see growth for the upcoming years, medium to long term.

In terms of Plin and Yape, I didn't get very well your question. I think the dynamic is, as we've seen, both gaining 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 Plin solutions, like what Michela mentioned, no? Like tarjeta de crédito or credit card, related to Plin. We see this as a very important opportunity for us as well. I don't know, Carlos, if you wanna complement anything specific around this dynamic.

No, just to follow your.

Well, I suppose.

Uh, sorry that-

Go ahead, Carlos Tori.

Go ahead.

Go ahead. Too many Carlos in the call.

Yeah, Carlos Tori, please.

Go ahead, go ahead.

No, Luis Felipe was talking about Plin. Yeah, the other avenue of growth for Plin is the instant payments on WhatsApp, no? Plin WhatsApp is obviously something that only Interbank has, and we've been growing with that as well. I understand, Carlos, your question was more related to regulation that affects Yape and Plin. I don't know if that was your question.

Yeah, that's 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 whether there might be new rules or force you to share things in a way that you have not in the past. Do you expect to encounter any constraints as you deepen your monetization of Plin?

The regulation regarding Plin and Yape was given, I believe it's like 2 years ago or 2 years and a half.

asked us to interoperate, no? Plin can send to Yape to Plin, and that's the regulation, that's a framework, no? There's updates to that in terms of SLAs and stability and stuff like that. They continue to monitor and revise. The regulator is the Central Bank. That is working. In terms of new regulation, we don't foresee anything in the short term. What will possibly, and this is something that we'll 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, no? They're starting with TAP, which is a service provided by UPI from the Indian central government.

The Central Bank will offer a highway where we can interconnect. If Plin wants to send to Yape or Yape to Plin or other players in the market, we can go through this, I'm calling it highway in 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 don't necessarily have to use it. The idea of the Central Bank is to offer this highway in better terms or more use cases to incentivize the different issuers 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.

It's not, I wouldn't consider it additional competition, but it will be an additional rail or highway through which we can interact.

Yeah

It will probably be the first-

Mmmh.

The first use of open banking. The idea is that the rail will be able to source funds from different accounts to send your transaction. Now, that's 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's just a very high transactional month. Probably January of 2027 is a more realistic timeframe.

That's very clear and very complete. Thank you so much.

Sure. Thank you, Carlos. Both Carlos.

The next question will come from Alonso Aramburu, with BTG. Please go ahead.

Yes. Hi, good morning, and thank you for the call. Just following up on your comments on loan growth in April, that you're seeing acceleration. Just curious, I mean, where are you seeing that? Is it broad based or are you referring more to your consumer and credit card book? What's driving that? Is it really more appetite from the bank, or is it normalization of liquidity or maybe a combination of the two? Then a second question regarding your acquisition of InFinance XP. Yeah, just curious, I know it's only a month since the acquisition, but if you can provide some comments on the initial reaction to the Sip app from the public, how is that? How is that launch is going? Thank you.

Thank you, Alonso. On your first question, I think it's a combination of both. I think the money from the pension funds, it's starting to be used already. Demand is starting to get back into the system. We're seeing that growth in the consumer financing, particularly in our small business segment. For us, it's 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. In terms of commercial banking, the activity is mixed. We have not seen strong growth there, but it's very seasonal.

Let me pass it on to Carlos, so he can complement this part of the question, and then I'll return to go over your Sip question. Sorry.

Thank you, Felipe. I think you mentioned most of it. Hola, Alonso. How are you? Yes, it's a mix. There's a little bit less liquidity, we're having As I've been mentioning over the calls, our value proposition has been having traction, and we've been seeing more transactions and increase. What has happened over the last few weeks is maybe prepayment of our credit cards isn't as high. No? That gives you a little bit of growth. Also we have put in line 1 or 2 good models that target the high risk or the lower segment, which has allowed us to have a little bit more penetration there without increasing risk too much. We've started to see some of that. It's a little bit appetite.

I would say 50% appetite and 50% market. We expect to continue to see that over the next couple of weeks and months. Yeah. What we previously mentioned in commercial banking, that's it. It's as he mentioned, we continue to see good growth in the lower segment of banking. No? Banca Negocios is doing well as well. Good growth.

Thank you.

Luis, do you want to take the Sip?

Yeah.

Yeah.

Yeah. On the Sip, you're right, Alonso, not only the transaction has been recently executed, but also the launch of Sip has been very recent as well. It's having good traction. It is, it's a couple, no? For both, it's acquiring new customers, and new customers are coming in better than we expected. It's a matter of migration of people that used to have the old solution, Financiera Oh! solution, and then you had some people that use Agora. Now this new app consolidates, like, basically three things. No? Loyalty, consumer financing, and also a payment solution. No? We had certain expectations in terms of what we were willing to achieve at launching of the new brand, the new solution.

What I can tell you, it is surpassing the expectations that we had, no? I think we are in a good start. As we've discussed, this is an early stage. It's probably a very interesting digital solution that we are bringing to market to where within retail it will require still time and investments in order to pursue the growth that we were thinking it could have. It's more like a medium to long term where we will start seeing the actual results of what we are imagining on this front, no? To go over your specific question, the launching has been successful in our view, and the traction that it's getting is exceeding the expectations that we had.

Great. Thank you, Felipe and Carlos.

Thank you, Alonso.

If you have a question on the audio side, please press star and then one to join the question queue. The next question will come from Andres Soto with Santander. Please go ahead.

Good morning to all, and thank you very much for this presentation. My question is regarding your digital strategy. The question has two components: One, a philosophical one. I understand there is an app under InFinance, which is the one that those users use to go to the stores. Then you mentioned in the call there is another app under Izipay, which is the one that I guess you are giving to your SME customers. Then you have Plin, which is the one that you use to interconnect with other banks. My question is, is this by design, are you planning to continue keeping those apps separate?

Is it the plan for at some point to migrate to an ecosystem where your customers can go to cover all the financial needs. 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-to-income at 37%. Are you expecting some additional pressure into 2027? You believe that your expenses in digital can be covered under these very stringent efficiency ratio? Thank you very much.

Thanks very much for your philosophical question and your other question. On the philosophical side, it's part of the strategy, actually. Well, Plin is not an app, as you know. Plin is like a highway that connects payments possibilities within customers. That's not basically a highway. You have to see it that way. You know, we've talked about it. It's like Zelle in the U.S., okay? You have the InFinance app or Zip. It's a different play. It's a consumer financing. It's a joint venture between us and InRetail. It will have its own customers. It's probably gonna be integrated at some point through the ability of doing certain things that move you through different apps.

Right now, the way it works and the way it's structured, it's a different solution serving specific customers that have very specific needs that we see that is boosted by the opportunities and potential that having InRetail as a partner brings, you know. 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 their Izipay and the Interbank app for those types of customers is being integrated as a single one, you know. Yeah, philosophically, we have different place for different segments and different strategies, you know. That's the way we are designing this.

If they are going at some point all be converted into a single app, I don't see it right now based on information that I'm seeing. Probably we'll build communication ways in order to provide different services through APIs or something like that, you know? That's the way we are designing the future so far. In terms of investments, that's a very interesting question. I do see that the pressure for investments in detail, in technology, in cybersecurity, in Gen AI will continue. This is not something that we do details information, and it ends at some point. I think what we're doing is basically following customers' expectations, and customers' expectations are basically increasingly demanding.

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. I think that the ability to manage the efficiency ratio at around 37% will be what guides us for the next two years. At some point, we'll get another level of scale that will probably allow us to think about levels below 35%, but that's not in the medium term. That's probably more a long-term view.

That's very clear, Felipe. If I may ask a follow-up on Plin. 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. There's a space for Plin. Probably, our strategy might change, but I guess it's having two highways probably. We will need to see which one is more efficient and which one is the one that serves our purposes better. I don't see that one will completely replace the other, probably they will be complementary. Carlos has been very involved in our payment strategy, maybe he can complement this view as well, no, Carlos?

I agree. First we start with the fact that Plin is not an app. It's a brand and a highway, as Felipe mentioned. Within that highway, technologically, you can send funds. You can use Plin and send funds through Visa Direct, or you can send it through the local chamber, exchange chamber. Those are the two highways we can use today technologically. UPI will add a third one. We can go through UPI, and we can brand it Plin, or we can brand it Tap. The transaction will still be from the Interbank app to a customer or another Interbank customer that receives it at Interbank or at a different bank. That will not change.

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. As Felipe mentioned, this, at least the first round, will be absolutely complementary to what we have now. It's an additional highway.

Understood. Thank you, Carlos, and thank you, Luis Felipe. Congratulations on the results.

Thank you, Andres.

Thank you. Nice to see you, Andres. Nice to talk to you.

At this time, we will take the webcast questions. I will now turn the call over to Mr. Ivan Peill from InspIR Group.

Thank you, operator. 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? Were there any large recoveries in Q1 which led to lower provisions for the bank, or is this the normal run rate going forward?

I think we've kind of answered this question throughout the course of the presentation, but just to summarize, I don't think we've had any specific one-time recovery. I think that's, as was mentioned throughout the call, is that the system as a whole is behaving better in terms of risk. The low cost of risk is particular for Interbank, but also we're seeing in the business as a whole. The level of cost of risk for the year will depend on the speed basically that our higher yielding book is built. No? That is the expectation that we have. As mentioned, our budget has been outbid by what we're seeing in the first quarter.

We do expect that probably as the book in higher yielding loans continues to build up, cost of risk should marginally start to go up. The next question?

The next, there are no further questions at this time. I'd now like to turn the call over to the operator.

Thank you. There appear to be no further questions on the audio side. I would like to turn the floor back to Ms. Casassa for any closing remarks.

Okay. Thank you very much. Thank you again, everybody, for joining our call, and we'll see each other again for the second quarter results. Stay safe. Bye-bye.

This concludes today's conference call. You may now disconnect

Thank you for standing by, and welcome to the Intercorp Financial Services Inc. Fourth Quarter 2025 Conference Call. The conference will begin in a few minutes. Pardon me. Good morning, and welcome to the Intercorp Financial Services Inc. Fourth Quarter 2025 Conference Call. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference call is being recorded. After the presentation, we will open the floor for questions, and at that time, instructions will be given as to the procedure to follow if you would like to ask a question. Also, you can submit online questions at any time today using the window on the webcast, and they will be answered after the presentation during the question-and-answer session. Simply type your question in the box and click submit. It is now my pleasure to turn the call over to Mr. Ivan Peill, from Inspire Group. Sir, you may begin. Thank you, and good morning, everyone.

On today's call, Intercorp Financial Services Inc. will discuss its fourth quarter 2025 earnings. We are pleased to have with us Mr. Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services Inc.; Ms. Michela Casassa, Chief Financial Officer, Intercorp Financial Services Inc.; Mr. Carlos Tori, Executive Officer, Interbank; Mr. Gonzalo Basadre, Chief Executive Officer, Interseguro; and Mr. Bruno Ferreccio, Chief Executive Officer, Inteligo. 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 at (646) 940-8843. 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 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 Inc. for his opening remarks. Mr. Castellanos, please go ahead, sir.

Thank you.

Good morning and thank you all for joining our fourth quarter 2025 earnings call. Thank you for your interest in Intercorp Financial Services Inc. We appreciate your continued support. I am going to start with the macrofront. We continue to observe a macroeconomic and political environment in Peru, marked by a positive mood. The Peruvian economy maintains its growth momentum, with expected growth of 3.3% for 2025, mainly driven by dynamic consumption-related sectors, sustained private investment, and the favorable performance of commodity prices, which continues to support the country's external accounts. Although we maintain a prudent perspective amid the international context and the election period, exchange rate strength and low country risk reflect market confidence in Peru. The sol has appreciated by approximately 10% in the year, and inflation remains stable, positioning Peru as one of the most dynamic economies in the region. Looking ahead to the political transition this year, we do not expect major changes in financial stability. Sound monetary management and strong institutions related to economic resilience and prudence allow us to have a base case scenario of sustained growth, supported by the resilience of the local market and investor confidence. This provides a solid foundation for long-term decision-making, prudent risk management, and sustained investments in innovation. Moving into Intercorp Financial Services Inc. results for 2025, we delivered record net income of 1,900,000,000.0, with recovering core results and solid profitability, with our ROE of around 70% even after considering the impact of the Ruta de Lima impairment. These results confirm our ability to adapt quickly and keep generating value despite some headwinds, in a disciplined and sustained way, aligned with our long-term strategy and reaffirming our commitment to long-term profitability and sustainability. Interbank achieved a record year with 1,400,000,000.0 in net income. This was supported by a decrease in cost of risk and increasing risk-adjusted NIM. Our consumer segment is showing signs of recovery even in the face of pension funds withdrawals, although we recognize that there is still progress to be made to reach our targets. Overall, Interbank has consolidated as the third largest bank in the system, reflecting our strong performance and disciplined approach to risk and profitability management. Yape and Interbank continue to capture joint business opportunities, reinforcing our payments ecosystem, while Plin deepens user engagement, fostering more primary banking relationships and driving growth. Interseguro, our insurance company, continues to grow its core business with solid performance in private annuities and life insurance. In addition, Interseguro continues to leverage synergies with Inteligo to expand private annuity sales and to collaborate with Interbank to advance integrated bancassurance solutions that deliver greater value for our customers. It maintains leadership in regulated annuities and has achieved the leading position in private annuities. Inteligo, our wealth management segment, continues to grow double-digit, achieving a new record high in assets under management, thanks to our clients' trust and consistent engagement. In all, Intercorp Financial Services Inc. remains committed to our focus on profitable growth strategy, always placing our customers at the center of every decision we make. We continue to reinforce this approach by prioritizing digital excellence and deepening primary customer relationships through comprehensive data-driven services and differentiated experiences. Investments in technology, GenAI, and innovation are key to maintaining our competitive advantage by enabling more personalized, efficient, and secure experiences, while strengthening productivity and delivering greater value to our customers. Looking ahead, we remain optimistic about Intercorp Financial Services Inc.'s outlook. Our platform has demonstrated resilience in downturns and is well positioned to continue executing its growth strategy, maintaining profitability and reinforcing our leadership in the dynamic Peruvian market. I will now turn the call over to Michela for further explanation of this quarter's results. Thank you. Thank you, Luis Felipe.

Good morning, everyone, and welcome to Intercorp Financial Services Inc. Fourth Quarter Results. We would like to start with our key messages for the year. In 2025, we delivered a solid performance across all segments. Net income reached a record 1,900,000,000.0, marking a 49% increase compared to the prior year. Our return on equity was also strong, standing at 16.8%. The second key message, higher-yielding loans continue the positive trend

And Ms. Michela, we can hear you. You may proceed.

Okay. Thank you very much. Sorry again, everyone, for the interruption. I am going to start again from the key messages. So in 2025, we delivered a solid performance across all segments. Net income reached a record 1,900,000,000.0, marking a 49% increase compared to the prior year. Our return on equity was also strong, standing at 16.8%. Second key message, higher-yielding loans continue the positive trend, showing an 8% growth on a year-over-year basis. Third, risk-adjusted NIM increased 50 basis points over the year, reaching 4% in the last quarter, while we maintained a low cost of risk at 2.1% and cost of funds near 3%. Fourth, we continue to strengthen primary banking relationships, and as a result, our retail primary banking customers grew 11% last year. Fifth, our insurance business continues to deliver solid double-digit growth, with written premiums growing by 661% year over year, mainly due to the growth in private annuities. And sixth, our Wealth Management business delivered double-digit growth in our core business with assets under management at new record highs. Let's start with our first key message. Let me share an overview of the macroeconomic environment. The Central Bank has raised its GDP estimate for Peru in 2025 to 3.3%, driven by stronger-than-expected performance in primary sectors such as agriculture and mining, followed by primary manufacturing, construction, and commerce. Looking ahead to 2026, Central Bank's projections have been revised up to 3%, driven by stronger private spending. Macroeconomic fundamentals remain stable, with inflation contained around 0.5% for 2025. The Peruvian sol has strengthened more than 10% this year, and the reference rate remains low at 4.25, maintaining favorable financial conditions for ongoing growth. Overall, Peru is establishing itself as one of the growing economies in the region, supported by solid domestic momentum, despite internal and external challenges. Additionally, the Peruvian economy holds positive prospects for the coming years, as it is well positioned to meet the global demand for commodities. Nevertheless, we remain cautious due to the political cycle and global market volatility. On slide five, driven by a favorable macroeconomic environment, private investment continues to expand at solid levels, growing almost 10% in the first nine months of the year and projected to reach 9.5% in the full year. This momentum is sustained primarily by the rebound in mining investment as well as the strong performance of the non-mining sectors. For 2025, we expect internal demand to expand by 5.4%, with private consumption rising to 3.6%. Looking ahead to 2026, internal demand is expected to moderate to 3.5%, with private consumption stabilizing at 3% and private investment reaching 5%. These upward adjustments reflect a resilient domestic market and continued optimism among both businesses and consumers. Business expectations remain in optimistic ranges and consumer confidence is stable, supporting domestic demand and employment generation. Private employment and wages are both increasing, fueling consumption. Additionally, a strong pipeline of mining and infrastructure projects is planned for the coming years, further supporting growth. In this context, retail lending continues to lead system-wide loan growth.

On slide six,

it is noteworthy that our accumulated earnings for the year have reached an all-time high, marking a relevant increase of 49%. This is reflected in our 2025 ROE of close to 17%, demonstrating strong profitability across all business lines. If we exclude the Ruta de Lima impairment, ROE would have been 18.5% for the year. This year, our three key business segments delivered exceptional growth. The bank achieved record earnings of 1,500,000,000.0, driven by a combination of lower cost of risk, reduced funding cost, increased fee income, among other factors. Inteligo reported a strong 68% increase in revenues and an outstanding ROE of 21.5%. This performance was driven by growth in core operations and solid results from the investment portfolio. Finally, Interseguro grew by 36% despite the Ruta de Lima effect, due to ongoing core business growth and higher investment results, which highlights the company's strength and resilience. Regarding Ruta de Lima, in the year, we have made 2,000,000 impairment, leaving the residual value at million or around $22,000,000. At this point, and with the information we have, we do not expect any further material impairment. On slide seven, during the last quarter of the year, we achieved an additional 11% quarter-over-quarter increase in earnings, reaching an ROE of around 15%. However, this ROE was impacted by the additional provisions for Ruta de Lima, as BRL 129,000,000 was recognized by Interseguro. Excluding this impact, Intercorp Financial Services Inc. ROE for the quarter would have reached 19.1%. Furthermore, if we set aside the effect of Ruta de Lima overall, net income would have increased by 11% quarter over quarter. On the banking side, the performance is driven not only by a lower cost of risk, but also by an improved net interest margin supported by better funding cost and robust growth in fee income. Particularly when excluding the impact of the provision reversal from Integratel ex Telefonica in the third quarter, net income has increased 6% compared to the previous quarter. The bank's ROE remains stable at 16%. Both Interseguro and Inteligo's core businesses continued to deliver double-digit growth. Interseguro achieved an ROE of 32.5%, in line with higher real estate valuations. Meanwhile, Inteligo's results this quarter were impacted by a lower return from the investment portfolio. On slide eight, we would like to highlight the positive trend of our earnings and ROE throughout the year. As mentioned before, for the full year 2025, our ROE stands at 16.8%. However, if we exclude the Ruta de Lima effect, ROE would have reached 18.5%. Overall, this has been a solid quarter and year across all Intercorp Financial Services Inc. business lines, with our core operations serving as the primary driver of profitability. Let's turn now to slide nine, where we take a closer look at Intercorp Financial Services Inc. revenues, which grew 13% year over year. At the bank level, top-line growth has increased by 6% this year. We are beginning to see a recovery in our net interest margin, which reached 5.3% in the last quarter. This improvement is mainly driven by accelerated growth in higher-yielding loans and continued optimization of our cost of funds, together with stronger fee generation and improved FX results, fully aligned with our strategy to deepen customer relationships. This year, Interseguro has demonstrated robust revenue growth of 33%, supported by an increase in insurance results of life annuities, but also by favorable investment results. Meanwhile, Inteligo grew top line 29%, thanks to a steady growth of fee income, aligned with the positive trend in assets under management. The investment portfolio has delivered a strong twelve-month return of 13.4%, marking a very good year overall. On slide 10, Intercorp Financial Services Inc. expenses increased by 11% in 2025 as we continue to make strategic investments to support our long-term growth ambition. This includes accelerated investments in technology to strengthen resilience, enhance user experience, improve cybersecurity, expand our capacity, and develop GenAI capabilities, alongside ongoing efforts to strengthen leadership within key teams, reflecting a recognition of the pivotal role talent plays in delivering our strategy. Consequently, the cost-to-income ratio stands at 36.8% at Intercorp Financial Services Inc. Now let's move to our second key message. On slide 12, we see increasing dynamism in higher-yielding loans. Our total loan portfolio expanded by 4% year over year, which would have been 6.5% excluding the FX effect. This positive momentum was driven by the acceleration in higher-yielding loans, which grew 8% over the past year. Robust macroeconomic activity is reflected in increased disbursements by 23% in cash loans and by 60% in small businesses. Overall, in retail banking, the mass market segment has grown steadily through the year, positively impacting the average yield, recovering around 20 basis points in the last six months. It is also worth highlighting our mortgage portfolio, which has expanded by more than 8% over the past year, surpassing market growth. As a result, we gained 10 basis points in market share, now exceeding 16%, firmly establishing ourselves as the third largest player in the system. On the commercial banking side, performance was strong across all segments, corporate, mid-sized, and small businesses. Notably, the small business segment stood out, achieving a solid 25% growth over the year, which means we have not only replaced all of the Impulso MyPeru maturities, but also expanded more than threefold beyond that, increasing the average yield by more than 200 basis points over the past year. Excluding FX effects, overall commercial growth reached 6%. On slide 13, we wanted to double-click on the consumer portfolio, which accelerated in the last quarter. Credit card activity continued to strengthen, supported by higher transaction volumes that reflect improved customer engagement and growing consumption trends. Overall spending increased by 8% quarter over quarter and 13% year over year, driven by more personalized communication efforts and the effective execution of targeted campaigns across key spending categories such as grocery stores, retail e-commerce, and cross border. Personal loans delivered solid balance growth alongside an improvement in profitability in the fourth quarter. Total balances accelerated in the last quarter at 2.3% despite excess liquidity in the market due to pension fund withdrawals, severance deposit releases, and the December seasonality. On a year-over-year basis, balances grew 5%, highlighting resilient demand and strong commercial execution. Looking ahead, we remain optimistic about our growth prospects. Following with the third message, we see improvement in risk-adjusted NIM. On slide 15, there is some good news to highlight in terms of this indicator. Over the past year, we achieved a substantial improvement in our risk-adjusted NIM, which rose by 50 basis points to 4% in the last quarter and accumulated 3.7% for the full year. This marks an increase of 80 basis points compared to last year's 2.9%. Notably, the last quarter contributed a 20 basis points uplift driven by lower cost of risk. On the funding side, we have positive news to share as the cost of funds further declined by 10 basis points over the past quarter. While the average yield slightly decreased this past quarter, retail rates improved by 15 basis points, supported by both mass market and affluent segments. These segments continue to build momentum and make meaningful contributions to our overall performance. Furthermore, within higher-yielding loans, we observed an increase of more than 40 basis points in the average yield during the quarter. As a direct result, our NIM increased by 10 basis points quarter over quarter. On slide 16, let me share a quick update on asset quality. Our quarterly cost of risk continues the trend to lower levels at 1.8% in the quarter, reaching the lowest level in four years, with a full-year cost of risk of 2.3%. Still, current loan mix supports a low cost of risk. On the retail segment, the cost of risk continues to decrease, now standing below 4%, representing a decline of 150 basis points compared to the prior year, still below our risk appetite. Our consumer lending portfolio is performing well, with cost of risk dropping from around 9% to below 7% year over year, supported by healthier customers, while new loans are showing a good performance in the new vintages. On the commercial side, asset quality remains strong, with performance holding steady throughout the year. On top of this, the adjustment of forward-looking parameters has enabled us to release some provisions. Overall, our nonperforming loans ratio continued to be healthy and our coverage levels remained solid at approximately 140%. Looking ahead, as our consumer and small business portfolios keep expanding, now representing 22% of our total loan portfolio, we should expect the cost of risk to gradually increase. All in all, these results underscore an improving operating environment and demonstrate that our prudent approach to portfolio management is enabling us to deliver sustainable growth. On slide 17, I would like to highlight some positive developments regarding our funding structure.

Deposits

remain a key component, accounting for approximately 81% of our total funding. Over the past year, total deposits increased by 5% and by 9% when excluding the impact of FX. Retail deposits continue their positive momentum, outpacing the overall system, particularly in savings and transactional accounts, in line with the pension fund release. On the commercial side, deposit growth has been further supported by the expansion of our payment ecosystem, resulting in a 15.5% increase in efficient commercial deposits. As a result of these trends, our cost of funds declined by 20 basis points year over year and by an additional 10 basis points in the last quarter, driven by increased deposit flows that were in line with pension funds withdrawal. The cost of deposits has shown a consistent improvement with a 30 basis points reduction throughout the year. Importantly, there remains further potential for reduction as the share of efficient

funding.

now at 40%, continues to grow with a positive impact on the fourth quarter of the additional liquidity coming from the market. Our loan-to-deposit ratio stands at 92%, which is in line with the industry average. Moving on to our digital strategy. Our payment ecosystem on slide 19, with Plin and Yape, 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 Yape as both a distribution network for Interbank products and as a source to increase growth. In particular, the commercial teams from both Yape and the bank are collaborating more efficiently, allowing us to deliver integrated solutions and maximize the value we bring to our clients. Yape continues to show strong momentum in the small business segment, with flows from Yape up 60% over the past year. This growth has contributed to the 26% in deposits, which now account for 11% of wholesale deposits or 33% of wholesale

low-cost deposits.

The flow from Plin expanded by 35% in the same period, as Interbank share of Plin flows is around 40%. Over the past year, Plin transactions increased by 48% and our digital retail customer base now stands at 84%. In 2025, we further enhanced our offering by launching Plin Corredores, Plin WhatsApp, and Plin eCommerce, reflecting our ongoing commitment to continuously introduce new features that add value to our customers. We continue to drive meaningful value and strengthen primary banking relationships throughout our digital initiatives, particularly with Plin. Over the past year, on slide 20, we have grown our retail primary banking customer base by 11%, now representing more than 35% of our total retail clients. Monthly active Plin users reached 2,600,000, each completing 33% more transactions versus last year. P2M payments remain a core driver of engagement, now accounting for 60% of all transactions. Additionally, we see good trends in our digital indicators compared to last year. We remain focused on developing solutions that meet our customers' evolving needs. As a result, we have seen steady growth in digital adoption, as our retail digital customer base increased from 81% to 84%, while commercial digital clients now stand at 74%. While the latest NPS reading was 51 for retail customers and 68 for commercial clients. Advancements include the fully redesigned payments area, the launch of customizable QR codes, and the dynamic CVV for Visa credit and debit cards, as well as the integration of investment management. Additionally, the ability to perform sales directly within the app further streamlines customer interaction. These initiatives reflect our commitment to security, convenience, and innovative financial solutions, underscoring our role as a leader in shaping the future of financial services. On slide 21, 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 sales-service to 71% and the digital premiums to grow 25% in the last year. In wealth management, we are committed to continually improving our Interfondos app, aiming to transform it from a simple transactional tool into a comprehensive digital adviser for our mutual fund clients. This has led to a steady rise in app engagement, with the number of digital users increasing by seven points year over year. Additionally, digital transactions now represent 55% of all activity on the platform.

Moving on

to the fifth message with double-digit growth in insurance. On slide 23, we continue to see an increased stock of the contractual service margin, which grew 22% year over year, mainly driven by Individual Life, which grew 23% in the last year, supported by strong new business generation that more than offset the monthly amortization of the CSM. Individual Life remains a key focus for us given its low market penetration. Although traditional channels keep growing at high rates, we have been also diversifying our distribution strategy to include new channels and adjust the product to reach new segments and keep supporting growth. Additionally, short-term insurance premiums grew by over twofold, driven by disability and survivorship premiums acquired through a two-year bidding process from the Peruvian private pension system. On the investment side, as mentioned before, solid results were impacted by additional impairment from Ruta de Lima. Despite this impact, the return on the investment portfolio reached 5.3% for the whole year and would have been 6.6% without this effect. Finally, Wealth Management continues to deliver double-digit growth. On slide 25, we highlight the strong performance of our Wealth Management business this year. Inteligo continues to show solid momentum. Assets under management have grown at a double-digit

pace

reaching new highs and now totaling $9,100,000,000 including deposits. Fee income continues to improve, up 15% year over year, which would have been 18% excluding the FX effect, adding to the positive trend in results. Now let me move to the final part of the presentation, where we provide some takeaways. On slide 27, before we move on to our operating trends, we would like to summarize where we are focusing our growth efforts. In commercial banking, we have seen important growth in small businesses, which increased loans by 25% 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 eight year over year when adjusted by FX, gaining 10 additional basis points of market share. This strong performance is supported by our strategy to deepen with key midsized company clients, unlocking additional cross-sell opportunities and leveraging synergies with Yape to enhance our value proposition, especially in the small business segment, where our digital and payment capabilities

set us apart.

The consumer portfolio has had three consecutive quarters showing growth. At the same time, the mortgage segment continued its positive trajectory, achieving a market share above 16%.

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 continued to grow at a healthy pace, up 16% year over year, reaching new record levels, a reflection of both market performance and continued client engagement. On slide 28, let me give you a review of the operating trends of 2025. Capital ratios remained at sound levels, with a total capital ratio of 16% and core equity Tier 1 ratio at 12.5%. Our ROE for the year was 16.8%, surpassing our guidance for the year. For loan growth, we grew 3.7% at 6.5% if we adjust for the FX appreciation. NIM had a slight recovery over the last quarter, with a full-year ratio of 5.2%. Finally, we continue to focus on efficiency at Intercorp Financial Services Inc., as our cost-to-income ratio was around

33–37%, sorry.

On slide 29, let's go through our expectations for 2026. For 2026, we expect our ROE to be around 17%, an improvement with respect to the full year 2025 and closer to our 18% midterm target. For loan growth, we expect a high single-digit growth above 2025 growth, driven by both commercial banking and the recovery of the consumer portfolio. We expect this to be above the system, with the aim to continue gaining market share in key businesses. Finally, we will continue to focus on efficiency at Intercorp Financial Services Inc., and we expect to maintain a cost-income ratio of around 37%. Let me finalize the presentation with some key takeaways. First of all, we saw solid performance across all businesses and our core operations. Second, our higher-yielding loans continue with a positive trend in both consumer and small business financing. Third, we continue to see improvement in the risk-adjusted NIM helping profitability. Fourth, we are strengthening primary banking relationships with our retail clients. Fifth, our insurance business keeps delivering solid double-digit growth. And finally, our Wealth Management business continues to deliver double-digit growth as well. Thank you very much, and now we welcome any questions you may have.

Our apologies for the technical difficulties experienced earlier on today's call. We thank you for your patience and understanding. 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. Key on your touchtone phone. 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, please press star then 2. Again, to ask a question, please press star then 1 now. And for the webcast viewers, simply type your question in the box and click submit question. We will pause momentarily to compile our questioners. Our first question will come from Ernesto Gabilondo with Bank of America. Please go ahead. Thank you. Hi. Good morning, Mr. Luis Felipe, Carlos,

Michela. Good morning to all your team, and congrats on the results. First question will be on Ruta de Lima. Just wondering if we should continue to see further impact in 2026, or is this almost done? Second question will be on loan growth and asset quality. So as you said in the presentation, the results, you have started to see more credit appetite towards credit cards and personal loans. So can you give us some color on what is the type of growth you are expecting for each segment, and how should that be translated into asset quality, NPLs, and cost of risk this year? Then I have a question on expenses. 2025, you have like a high single-digit growth. You have been putting efforts in terms of technology, personnel, marketing, so how should we think about OpEx growth this year? And my last question is on your sustainable ROE. I believe in the past, your ROE used to be at the same level of Credicorp, which now is targeting to be around 20%. I believe you are targeting a midterm ROE of 18%. So I was wondering if there is an opportunity to get your ROE more close to your peers at some point, or is something that you are not considering. And also, this 18% expecting it to be achieved probably likely in 2028. That will be all for me. Thank you.

Okay. Ernesto, thank you very much. And again, also, from our side, apologies for the technical difficulties. We are looking into what happened, but going back to your question on those things, thanks again. I am going to go briefly with a summary, and then we will pass it on to the team members so they can make more specific comments. On Ruta de Lima, based on the info that we have, I think this is, again, we have done close to 80% in provision or impairment. Right now, with the information we have, where the legal proceedings are, what we expect is going to happen going forward, we feel comfortable that this should be the effect, and 2026, we should not see anything else. There might be some positive developments that change this in the medium term, but for the short term, I think we feel pretty confident that this is the impact that will go through our books related to this name. In terms of loan growth, I think it is encouraging what we have seen in the last quarter. Again, especially higher-yielding loans are starting to pick up. We do expect this trend to continue through next year, and overall, if those loans start picking up as we hope, then obviously, the cost of risk related to those high-yielding loans will come with that portfolio. In terms of expenses, I think we will continue to invest. So overall, in the three businesses, we keep strengthening our teams, we keep investing in technology, and we are seeing more volume overall. So probably the trend is going to be very similar to this year. And lastly, in terms of the ROE, our midterm view is, again, 18% plus. We are not getting married to any specific number. Obviously, if the Peruvian system evolves the way we expect, we should see similar numbers to pre-pandemic, but we are taking it slowly because, again, the nature of volatility that has impacted the system because of

some

political issues has made the nature of growth in Peru not as strong as we had before. While that continues to unveil, we get kind of an optimistic conservative approach towards growth. But, obviously, if 20% ROE is achievable, we do think we have a platform that could take advantage of that. Now let me stop and I am going to pass it on specifically for your question one and two to Gonzalo, and Carlos afterwards to see if there is anything that they want to complement. First, Gonzalo, anything more that you would like to say on Ruta de Lima? You are mute, I think, Gonzalo.

Yes. Hi, everybody.

During our last call, we mentioned that after the closing of the tolls, we will do an additional charge on Ruta de Lima in the fourth quarter, and we reviewed, and we think we have a very conservative value in what is left on investment. It is around 20%. With the information we have now, we think that there will not be any additional charges on that investment.

Okay. So that is good. Now, Carlos, can you help us with a little bit more detail in terms of loan growth and asset quality as asked by Ernesto.

Yeah. Thank you. Absolutely. Hello, Ernesto. Thanks for your question.

So regarding

loan growth, particularly higher-yielding loan growth, which is credit cards and

personal loans and SMEs.

We have started growing that

2025, I would say, more on the 2025. However, the market is mixed because of the AFPs' withdrawals. So a lot of the growth that we had was amortized by the clients towards November and December. That was an effect that curtailed our growth. But we still grew in personal loans and credit cards around 2.3%, 2.5% in the last quarter. We expect that to continue and accelerate in 2026, based on the things that we are doing and our risk appetite, but also on the fact that this is liquidity that Michela mentioned from the AFPs. What this will do is it would probably increase cost of risk slightly, not because we want to increase cost of risk per se, obviously, but because it is a more efficient frontier in terms of profitability and risk. So we will probably go closer. Last quarter was below 2%, our cost of risk, and we will probably get closer to 2.5 or something around historic environment. So I think that answers the question. I do not know, Ernesto, if you have any follow-up questions on that.

No. No. Yes, sir. Excellent. So cost of risk around 2.5% for this year. And in terms of loan growth, you were saying more gradual increase in these high-yield loans. What about corporate loans? I believe maybe after the election, they can start to pick up. So just wondering how you are seeing that segment.

All right. Just to be clear, the cost of risk is not a target.

It is probably a trend that will happen as you get higher-yielding loans. Corporate loans, as you know, we have good relationships with our main clients in Peru. We work closely with them in short term and long term. Corporate growth will depend on mainly two things: the amount of CapEx that goes on, and probably there has been good CapEx in 2025. It will probably slow a little bit until we have more vision on the elections. But there is a lot of things coming in. And then bond offerings. As long as there are more bond offerings, the bank, we foresee some growth, the banks kind of shrink, just because the economy will grow and there will be investment, but it will not be necessarily our leading portfolio.

Perfect. No. Thank you very much. Just a follow-up in terms of the ROE because the talking about the ROE was stopped, the audio, so can you repeat again how you see the evolution of the ROE and if you think at some point the 20% could be reachable?

Yes. Thank you, Ernesto. So again, the ROE, if you see the way we look at ROE, Inteligo and Interseguro are already operating at ROEs north of 20%. The one that is growing and recovering is the bank, and that pace of recovery will depend on how fast we can

rebuild

more relevance of the consumer and higher-yielding book. So again, we do see an 18% plus ROE in the medium term as this book continues to evolve. And as we continue gaining efficiency and scale, the 20% plus is achievable as long as the Peruvian economy continues to perform well. And so, yes, we are not saying it is not achievable. However, in the medium term, we do need to see the higher-yielding book recover so the ROE of the bank improves, to be able to push towards north of 18% ROEs.

Perfect. Very helpful. Thank you very much.

Thank you, Ernesto.

The next question will come from Daniela Miranda with Santander. Please go ahead.

Good morning. Thanks for taking my question. Two very quick ones from my side.

The first one is we noticed there was no formal guidance provided on NIM. Could you share some additional color on how you are thinking about NIM in 2026? And also, we continue to see volatility in the results of Interseguro and Inteligo in terms of running P&L due to the investment portfolio. What is your medium-term profitability outlook for these businesses? And are there any specific initiatives underway to help mitigate this earnings volatility?

Thank you. Okay. Thank you. I am going to start by

your question number two. Again, our medium term and our structural profitability for both businesses is 20%. Obviously, especially Interseguro is investment-related. So whatever happens with the market will have an influence in the results. That is why you see a little bit more volatility. Same happens especially with the prop book of Inteligo. We have a mixed strategy there. As you know, we do have a nice fee business growing and very stable, but then our book brings in some volatility that is dependent on the evolution of market in terms of investment results. But we do see 20% ROEs for those businesses year in, year out, and going forward, and that is the structural view that we have on it. In terms of NIM, again, I am going to let Michela go over that answer, but as long as the higher-yielding book continues to get more relevance, NIM should continue to improve. So that is what we are expecting for next year, but maybe Michela can help us with a little bit more detail on that.

Yeah. Just to add that, as the higher-yielding loan portfolio grows, that should positively impact yield on loans, and we also expect an additional improvement of cost of funds, not as big as we have seen in 2025 because I guess a portion of that was also related to decreasing rates. But we still see potential for further decreasing cost of funds as we continue to improve the mix of the efficient funding, with all the things that we are doing both in retail banking but also with the payment ecosystem with Yape and commercial banking. So NIM should slightly increase during 2026. Now we saw it already in the last quarter, 10 basis points. So we should see a further improvement in NIM and in risk-adjusted NIM throughout 2026.

Thank you, Michela. Very clear. Thank you.

The next question will come from Yuri Fernandes with JPMorgan. Please go ahead.

Thank you. Good morning and congrats

for the quarter or for the year. I have a question regarding your deposits. For you to deliver a high single-digit loan growth, how do you imagine your funding also growing? And this year, deposits are growing less. They are growing, I do not know, five above loans, but I think this is not enough for a nine. Just checking here in the figures, I guess there was a good improvement in funding cost, like more expensive funding lines were reduced, you were growing your more retail deposits. So basically, you were focusing on cheaper lines. And I read the message from Michela from the past answer was that margins will expand on the asset side, on the mix. So just checking the liabilities, should we see maybe, for you to deliver the funding growth you need, a higher funding cost for you into 2026? And then just a follow-up on Ernesto's many questions just on the ROE. This was a reported 16.8% ROE. If you adjust for Ruta de Lima, that hopefully is getting over given the amount of exposure you have, why not more than 17% ROE for the next year? If insurance and the other businesses are running already at 20%, it is a better year, why not a higher ROE for this? Thank you.

Okay. Thank you, Yuri, for your questions. And let me go over the last one again. Again, it will depend on, if you see, the bank is around to continue to recover. The ROE of Interbank is the one that, obviously, Inteligo had a soft ROE quarter, very strong year. But, again, it will depend on the pace of recovery of the higher-yielding book of the bank.

So

more than 17% that is achievable. It is achievable, but it depends on many situations. So that is why we are guiding at around 17%. It is an electoral year. So the pace of recovery is still to be seen. Again, we have seen that we have had releases of pension funds that is curtailing our ability to grow as strong as we want. So we are probably on the conservative side in terms of what will happen. If the opportunities for growth are there in the book, we will take advantage of that, and that should have a positive impact in ROE as well and in NIM for the bank. But, again, we feel more comfortable in looking at a smooth recovery, not an aggressive recovery. And then in terms of deposits, yeah, we are focusing very much on low-cost deposits. Our retail banking platform allows us to continue growing there, and also the strategy that we are deploying with Yape is key for that. So we do expect this to continue growing in the next year and having an impact in our cost of funds base. But let me pass it on to Carlos so he can connect this with the strategy that we are deploying so you can have a more ample picture.

Yeah. Thank you, Mr. Luis Felipe and Yuri. Yes. A little more detail on what we said, but as you can see our loan-to-deposit ratio is low. The fourth quarter was 92%. We have been growing deposits, but more than focusing on overall deposits, we have been focusing on low funding or low-cost deposits, and that has grown more this year than the last. And that, as we mentioned, comes in two ways. Plin continued to grow

well

across the years, really. And 2025 was not an exception. Obviously, at the end of the year, helped by the pension fund, but we also get some of that in January and February. So we will continue getting that. And the other source of

funding

is the payments ecosystem. It is Plin. It is the funds that come from Yape to the accounts at the bank. Expect that to continue. So we will continue to grow low-cost funding. Maybe the overall size of deposits will continue to grow, but we are more focused on the mix. And that is what would help cost of funding and NIM. So that is the strategy.

No. Thank you very much, Carlos and Luis Felipe, for the answers.

Thank you, Yuri.

The next question will come from Carlos Gomez with HSBC. Please go ahead.

Good morning. Congratulations and thank you for taking my questions. The first one is actually another way of asking the same thing everybody has asked too.

We are obviously in an upswing for retail and for demand. And I guess my question is, to what extent do you think this is temporary because of releases from the pension funds or other factors, or it is a permanent upturn? Essentially, how long do you think that the good times are going to last? You probably do not have an answer, but I would like to know what your best case is. Second, referring to Plin, I was trying to find some numbers, but I do not see them in the presentation. What would you say the market share of Plin is today? And what is your market share within Plin? Thank you. Okay.

We hope that good times last for many months or years. Go ahead. But, Carlos, what we think is, let us see. Again, the pension fund releases and the severance deposit releases actually are a stopper to loan growth. Because people use those funds, obviously, for some consumption and for debt activity, but also to repay debt or not get into more personal loans. So when that dries up, and we do expect that to happen starting the second quarter of this year, we are probably going to see a stronger demand for personal loans in the portfolio and in the system as a whole. So it is a little bit cumbersome, but the releases of funds actually stop a little bit the growth profile of the portfolio. Now we are seeing good macro numbers in Peru. The sentiment is positive. The confidence indexes are at high levels. The labor numbers are looking good. The consumption indexes are also stronger. So there is a structural improvement in Peru's macro front that is having a positive impact in terms of growth as well. We do expect that to continue during this year. Hopefully, it will flow through to 2027 and moving forward. Again, the big question mark is, is Peru going to have noise on the elections of April? Is this going to be something similar to what we had before? We do not think so. Our base case is that that is not going to be the situation. But, again, we know Peru, and we cannot discard that the volatility from the political situation will be there, and let us see how elections at the end evolve. There is some noise right now actually in the political front. Peru has become a surprise in terms of political instability

that

is not affecting economic numbers, but obviously, given that it is an electoral year, there could be some investments being delayed, investor confidence coming down, consumer sentiment changing routes because of this potential noise. So that is the only question mark that we have, but we do see that the structural improvement of the macro front, coupled with the strong commodity prices, position Peru to continue having a strong currency, low inflation, and accelerated growth. In that backdrop, the financial system and Intercorp Financial Services Inc. and Interbank itself should continue to benefit from that environment. And then regarding Plin, let me pass it to Carlos, who has a little bit more detail on that. Carlos?

Excellent. Yeah. The reason we do not disclose market shares in Plin and Yape is because there is no official source for market shares. We build an estimation based on what our competitors say in the market. So we believe Plin currently has about 15% of the P2P and P2M market. So P2P is person to person, and then also using Plin to pay at a merchant. We believe Plin is somewhere around 15%. And Interbank is a little bit over half of that. That is our estimation. I think it is well founded, but there is no definite source on it. We do see growth above 40%, 50% per year. We continue to see very healthy growth in terms of users and in terms of transactions per user. So it has been growing and it is contributing to our ecosystem. So, I think that is as much as I can share. I do not think I can share more, but that should give you a sense

of where we are at.

Could you remind us, I mean, no other piece of information, but as far as we know, there are two of you and you have your numbers. So as long as Yape gives theirs, you should have a full picture, or are we missing somebody? Are we missing some other operator? And over time, is the market share of Plin increasing or decreasing? How do you see this market evolving?

Okay. So yes, there are a few, like, there are other banks that are not part of Plin or Yape. That is one. And they go through the CCE and we are all interconnected. So that is one part. It is a small part. The main area is sampling. What I do not get to see, and I only get to see on the reports, is when Yape sends to another Yape user. We do not see that. We only see when Yape sends to Plin and when Plin sends to Yape. That is the reason we do not see the exact share. So there is a mix of the players that are not Plin or Yape, and then there are on-us or on-them transactions. And then, in terms of share, yes, we are growing. It is still small, so we think there is a lot more potential to grow faster and to continue to grow. But, yeah, we are growing. Yes. And I think that something very positive is that we do see that our

customers that use Plin have much more activity with us, more principality, now we become a principal bank, NPS is higher, and obviously churn is smaller. So the numbers are adding up nicely in terms of building up on the strategy that the bank is deploying.

Absolutely. Thank you.

Thank you.

Thank you, Carlos.

The next question will come from Alonso Aramburu with BTG. Please go ahead.

Yes. Hi. Good morning, and thank you for the call. I wanted to maybe double-click on the performance on consumer loans. Dynamics clearly are better than in the last couple of quarters.

If you look at your market share, you have been losing market share,

roughly one point in the last twelve months. So maybe you can comment on the competitive dynamics. What are you seeing? Who is gaining share? Is it related to payroll loans where you have seen negative growth over the past twelve months? And have you seen any change in this trend for 2026? Thank you.

Yeah. Thank you. Thank you, Alonso. Yeah. I think payroll-deductible loans to public sector employees, that is a market that for us is not growing that much. You have identified it well. And it obviously has an impact. And then I think that we have been digesting what happened in 2023/2024. So we are coming back to market probably a little bit later than some of the competitors, but again, we have been in this business for many years. We know how cyclicality can be, and we have been working in making sure that the equation adds up. And so we are returning with a little bit more of risk appetite, but, obviously, we have been strengthening our underwriting standards and working through our models in order to make sure that we do not face any issues in the near term or medium term. That is probably, adding all up, you will see the results that we have seen, especially in the first half of the year. But as Carlos mentioned, we have seen acceleration in the third and especially in fourth quarter in terms of velocity of growth. But I am going to pass it to Carlos so he can complement a little bit more on that specific competitive dynamics that we are seeing. Carlos? Oh, absolutely. I think there are two different

so convenience, not payroll loans. They have their own environment. We are the leaders there. Obviously, it is a good market, but it grows slower than the rest of the market. As the leader, we are looking at keeping the relationship with our clients, the economics, and that has a much different performance compared to loans and credit cards. So where we stopped in 2023/2024 was loans and credit cards. And as Luis Felipe mentioned, we started to grow again and increase our risk appetite in 2025. We will continue to do that, but we want to do it in a very responsible way. As you know, in the consumer book, big spikes in growth never end up well. So we have been doing it well. We have been growing. You would have seen a lot more growth if it was not for the AFP withdrawals. I think that is something that set us back a little bit in terms of growth, but not in terms of usage of our credit card, usage of our payment solutions. We continue to see growth and engagement there. So we are very positive that over the next couple of months, we will have growth and recuperate some market share. As we mentioned earlier, we are at the beginning of this cycle. It is early, and we know how to do this, and we feel comfortable that the engagement and our value proposition is working well. And it is a matter of increasing the risk in the portfolio slightly, and you will see the growth. So that is the way we are looking at it. The convenience portfolio has a whole different environment that should be more stable. The other portfolio that is growing is SMEs. And that is higher-yielding as well. And that kind of, at the end of the day, brings in a little bit of the yield that is not growing with the payroll loans portfolio.

Great. Thank you for the color.

The next question

The next question will come from Daniel Mora with Credicorp Capital. Please go ahead. Hi, good morning and thank you for the presentation. I have just

one follow-up question.

The normalized ROE in 2025 was

close to 18.5%. So I am wondering now, or I would just like to clarify, what is stopping Intercorp Financial Services Inc. from reaching a similar figure and achieving an 18% ROE besides the Ruta de Lima, in which we do not expect more additional impairment. What will be those factors that you expect will not repeat this year and that favored 2025 results? And thus, what will be the ROE expectations for each company in the 17% ROE scenario for this year? Thank you so much.

Thank you, Daniel. Yeah. Well, I am going to go again. So it was a very strong year for some of our investments, especially Inteligo, and also some investments we have at a holding company level that is closer with the SCTR. So that was very positive. And, again, the more stable, sustainable higher ROE will have to come from the continued recovery of the bank. While the consumer and higher-yielding loans book recover in stance, if you see that last quarter ROE for Interbank itself was around 16%. So that needs to continue into a more positive way. And that will come again as a result of a higher-yielding loans building up in our portfolio, and that is a process that Carlos just explained. So that is what is holding us back a little bit in terms of how fast we can achieve that medium-term objective. So I hope that answers your question.

Yeah. Perfect. Thank you so much. Very good. Thank you.

At this time, we will take webcast questions. I will now turn the call over to Mr. Ivan Peill from Inspire Group.

Thank you, operator. The first question comes from Shane Matthews of White Oak Investors. Hello, congratulations on the results. As you increase the share of higher risk loans, do you expect to maintain the same level of coverage of 2025?

Okay. Thanks for your question. I am going to pass it on to Michela. I am assuming, yes, the coverage comes in line with higher provisions due to the cost of risk increasing because of those loans. But that mathematics in terms of coverage, Michela, maybe can help me.

No. Yes. Not much to add, actually. Yes. As Carlos mentioned before, as we are increasing the high-yielding loan portfolio, we should see an increasing cost of risk. And the levels of coverage, we should remain very similar to the ones that you see in 2025.

Okay.

The next question comes from Anand Bavnani, also of White Oak Investors. Given it is an election year, what are the key risks that you would watch out for?

Okay. Thanks very much for that question. I guess I am going to put it in two fronts. Yes, it is an election year. Again, we do not see big disruptions coming into the market. Our base case is of continued stability, true growth. What we have seen in previous elections is some candidates that are not market-friendly start to rise up in terms of the polls. And then people start losing confidence and investments start getting delayed. So that is a risk that we see to growth in the coming months. That something changes in terms of the political environment, and some radical proposal or not market-friendly type of disruption becomes a risk in the political scenario. So that is the election period itself. And people will delay and companies will delay some decisions because of this. And then the second front is what actually happens. Who gets elected? And, again, the risk is for someone that is not market-friendly being elected, trying to change certain things that support growth, stability, the currency being stable, or issues that will come with inflation. So basically, that is the reason. It is a political risk of somebody changing the rules of the game. The probability is not high, but, again, we are in Peru and we have gone through some volatility because of this before. So that is the way we see it. So we need to see what happens in elections and what happens with the actual candidate being elected as president. Now, again, our base case is of continued stability, continued growth, continued strength. I guess Peru has proven that their economic-related institutions are very solid, very well respected. They do their work pretty well even under the previous election, and when President Castillo was elected, that was not touched. That was not changed. So we feel very, very confident on that continuing to work it out. Strong Superintendency, strong Central Bank, strong Ministry of Economy and Finance. But, again, those are the political risks that we are looking at. So I hope that answered your question on that front.

We have a follow-up question from Anand

Bavnani.

of White Oak Investors. Given the boom in copper and lower price of oil, do you anticipate GDP growth to have upside risk and inflation to have downside potential, both of which could be a tailwind to help you do better?

Yes. Obviously, those are positive factors that could influence stronger performance of the Peruvian economy. Obviously, that would help the currency to continue in its strength. It is a strong pattern. As Michela mentioned, the Peruvian sol has appreciated 10% this year. We do not foresee, if the commodity prices continue to be strong, probably the sol will continue to follow that path. Inflation will continue under control. And having good export results and low cost of energy would help improve some productivity, and that should have positive winds towards our economic performance as a whole. The Peruvian financial system should be a multiplier of that, and again, Interbank and Interseguro and Inteligo, we have a platform that can definitely look at the opportunities that that positive situation approaches. So there is an upside risk on that front that we are prepared to take advantage of, and we are looking very carefully at those opportunities. Now again, the big question mark can be the political situation, but that is going to clear up in a couple of months. So we will have a more clear picture probably for the next quarter.

At this time, there are no further questions. I would like to turn the call over to the operator.

Thank you. And we are not showing any audio questions as well. I would like to turn the floor back to Ms. Casassa for any closing remarks.

Okay. Thank you very much, everyone, for being with us today. Sorry again for the inconvenience, and we hope to see you all on the next quarterly conference call. Thanks again.

Bye, everybody.

This concludes today's conference call. You may now disconnect.