Q4 2024 Intercorp Financial Services Inc Earnings Call Transcript
Key Points
- Intercorp Financial Services Inc (IFS) achieved a strong recovery in earnings and profitability, with a net income of PEN490 million in the fourth quarter, marking a 71% increase from the previous year.
- The company reported an ROE of over 18% in the fourth quarter, demonstrating a fast recovery and resilience in operations.
- IFS's banking segment saw a significant improvement in market share, particularly in commercial banking, where it gained over 130 basis points.
- The wealth management segment, Inteligo, reached an all-time high in assets under management, growing by 17% year-over-year.
- IFS continues to focus on digital excellence, with over 80% of retail banking customers and 70% of commercial customers being digital, enhancing customer engagement and primary banking relationships.
- The cost of risk, although improved, remains a concern, with a quarterly rate of 2.6%, which is still above the company's long-term target.
- The company anticipates potential volatility in 2025 due to the pre-electoral year in Peru, which could impact economic stability and growth.
- IFS's consumer loan book has shrunk, and while recovery is underway, it remains a challenge to rebuild this segment efficiently.
- The effective tax rate for 2024 was lower than historical levels, but it is expected to increase in 2025, potentially impacting net income.
- The guidance for 2025 indicates a cautious approach, with an expected ROE of around 16%, which is below the 18% midterm target, reflecting uncertainties in the economic environment.
Good morning and welcome to the Intercorp Financial Services first-quarter 2024 conference call. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference is being recorded. After the presentation, we will open the floor for questions. (Operator Instructions)
It is now my pleasure to turn this 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 fourth quarter 2024 earnings. We are 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.
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