IFS — Intercorp Financial Services Inc.

Summary of Intercorp Financial Services Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Net Income: Record quarterly net income of PEN 602 million, a 35% increase year-over-year.
• Return on Equity (ROE): ROE of 19.4%, exceeding previous guidance of around 17%.
• Loan Growth: Total loan portfolio grew approximately 6% year-over-year, with higher-yielding loans up 9%.
• Risk-Adjusted Net Interest Margin (NIM): Increased by 90 basis points year-over-year to 4.2%.
• Cost of Risk: Improved to 1.4%, the lowest in four years, with nonperforming loan ratios remaining healthy.

2. Strategic Updates and Business Highlights:

• Acquisition of Infinance XP: A strategic partnership with InRetail, acquiring IXP Holding for $130 million to enhance the consumer finance and payments ecosystem.
• Digital Initiatives: Continued investment in technology and digital platforms, including the launch of a new business app for small businesses and enhancements to the Clean platform.
• Insurance and Wealth Management: Interseguro and Inteligo reported double-digit growth, with premiums up 35% year-over-year and assets under management reaching new highs.

3. Forward Guidance and Outlook:

• Economic Growth: GDP growth for 2026 expected around 3%, with a focus on maintaining profitability and executing growth strategies amid potential volatility.
• Cost of Risk Outlook: Anticipated to gradually normalize as higher-yielding loans increase, with a long-term target of 2.5% to 2.8%.
• Loan Growth Expectations: High single-digit growth anticipated for the full year, supported by strong demand in consumer and small business segments.

4. Bad News, Challenges, or Points of Concern:

• Political Uncertainty: Upcoming presidential elections pose risks to economic stability and growth.
• El Niño Weather Phenomenon: Increased likelihood of moderate El Niño could disrupt economic activity later in the year.
• Market Volatility: Higher energy prices and external uncertainties may pressure inflation and growth outlook.

5. Notable Q&A Insights:

• Political Outlook: The counting of votes in the presidential elections is nearly complete, with a second round scheduled for June 7.
• Cost of Risk Projections: Analysts inquired about the sustainability of the low cost of risk, with management indicating it may rise as higher-yielding loans grow.
• Digital Strategy: Questions regarding the integration of various apps (Clean, Infinance, Izipay) revealed a deliberate strategy to maintain separate platforms tailored to specific customer needs, while also exploring synergies.

Overall, IFS reported a strong start to 2026 with record earnings and strategic growth initiatives, though it remains cautious about external economic factors and political developments.