Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intercorp Financial Services Inc IFS reported a record quarterly net income of $602 million with an ROE above 19%, reflecting disciplined execution across its platform.
- Higher-yielding loans showed positive momentum with a 9% growth year-over-year, contributing to the company's strong financial performance.
- IFS's insurance and wealth management businesses delivered double-digit growth, with written premiums growing by 35% year-over-year.
- The strategic partnership with InRetail to acquire InFinance XP is expected to strengthen IFS's consumer finance and payments ecosystem.
- IFS continues to enhance its digital strategy, with initiatives like the new Business App and PLIN Credit Card, driving deeper customer engagement and improved customer experience.
Negative Points
- The international environment remains volatile, with higher energy prices and external uncertainties potentially pressuring inflation and growth outlook.
- The potential impact of El Nino could affect economic activity in the coming quarters if weather-related disruptions materialize.
- IFS's cost-to-income ratio increased to 36.6% due to accelerated spending in technology and talent, reflecting higher operational expenses.
- The near-term outlook is challenging with inflation above the central bank's target and political uncertainty related to the Presidential elections.
- Despite strong performance, the company's cost of risk is expected to gradually normalize from current low levels as liquidity conditions change.
Q & A Highlights
Q: Can you provide more color on the latest update on the Presidential elections and the potential impact of El Nino?
A: Luis Felipe Castellanos Lopez Torres, CEO: The election count is nearly complete, with expectations for final results by May 15th. The second round is scheduled for June 7th. Regarding El Nino, the probability of a moderate event has increased to 43%. The impact is expected later this year or early next year, and we are preparing accordingly.
Q: How do you see the cost of risk evolving in 2026, given the strong first quarter performance?
A: Luis Felipe Castellanos Lopez Torres, CEO: The system is performing well, and Interbank has seen good results. We expect cost of risk to gradually normalize as liquidity decreases, with a long-term appetite in the 2.5% to 2.8% range.
Q: What are the drivers behind your revised ROE guidance for 2026?
A: Luis Felipe Castellanos Lopez Torres, CEO: The strong start to the year and low cost of risk are key drivers. We are cautiously optimistic, with Peru's economy expected to grow around 3% and strong commodity prices supporting business confidence.
Q: Can you provide more details on the expected impact of consumer loans on margins?
A: Michela Casassa Ramat, CFO: We expect a gradual recovery in NIM as the portfolio mix changes. Yield on loans should start to pick up, and while risk-adjusted NIM will remain stable, both yield and cost of risk components should increase.
Q: What should we expect for the insurance business, given the stable number of clients but growing premiums?
A: Gonzalo Pasagre, CEO of Interseguro: Premiums are growing fast due to private annuities and life insurance, which have higher premiums per client. The number of clients is stable due to the large number of bank assurance clients, but the business is growing healthily.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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