Intercorp Financial Services (IFS) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 reached PEN 446 million (S/ 446.1 million), up 216% year-over-year, with ROE at 16.3%, driven by strong commercial banking, insurance, and wealth management growth.

• Commercial banking led growth with a 19% year-over-year increase in loans and over 120 basis points gain in market share; consumer lending stabilized and began to recover.

• Insurance and wealth management segments posted double-digit growth, with retail premiums up 36% and assets under management reaching a new all-time high, up 16% year-over-year.

• Digital strategy advanced, with retail primary banking customers up 15% and digital retail customers comprising 82% of the base.

• Funding costs improved, with cost of funds down 80 bps year-over-year and low-cost funding rising to 35% of total funding.

Financial highlights

• Net income reached PEN 446 million, 3.2x last year’s result; ROE at 16.3%; revenues grew 14% year-over-year.

• Net interest and similar income rose 2.3% year-over-year; fee income from financial services increased 10.3% year-over-year.

• Cost of risk at 2.8%, down 190 bps year-over-year, but up 20 bps sequentially due to a PEN 144 million provision related to Telefónica; excluding this, cost of risk would be 2.5%.

• Loan-to-deposit ratio at 97%, with deposits now 81% of funding; total assets grew 3.3% year-over-year to S/ 95.5 billion.

• Cost-to-income ratio improved to 35.4% in 1Q25 from 37.2% in 1Q24.

Outlook and guidance

• Guidance for ROE remains at 16–18% for 2025, with upside risk if positive trends persist.

• Loan growth expected to continue at high single digits, led by commercial banking; consumer lending recovery is underway but not yet at target levels.

• NIM expected to recover as consumer portfolio grows and cost of funds further improves.

• Cost of risk guidance remains at 3%, with potential to stay lower if consumer lending mix remains conservative.

• Focus on digital experience and primary banking relationships, with continued growth in key business lines and market share.