Intercorp Financial Services (IFS) Q4 2024 earnings summary

Executive summary

• 2024 saw a strong recovery with Peru's GDP growth at 3.2%, improved macroeconomic sentiment, and a resilient sol, supporting IFS's net profit growth of 21.1% year-over-year and 71% in Q4, with ROE above 18% in Q4 and 12.6% for the year.

• Strategic focus included digital transformation, with over 80% of retail and 70% of commercial customers using digital channels, and expansion of the payments ecosystem.

• Interbank consolidated its position as the third-largest bank in loans and deposits, with significant growth in Izipay flows and digital transactions.

• Wealth Management and Insurance segments contributed to profitability, with Wealth Management AUM up 17% and Insurance leading in annuities and individual life.

• Efficiency ratio improved to 35.8% in Q4, reflecting ongoing cost control and digital adoption.

Financial highlights

• Q4 net income reached S/ 490 million, up 71% year-over-year and 26% sequentially, with full-year net profit at S/ 1,307 million (+21% YoY); Q4 ROE at 18.2%, FY24 ROE at 12.6%.

• NIM was stable at 5.3% in Q4 and FY24; cost of risk declined to 2.6% in Q4 and 3.6% for FY24.

• Efficiency ratio at 35.8% in Q4 and 37.4% for FY24.

• Loan-to-deposit ratio at 95–96%, in line with industry average.

• Regulatory capital ratio at 15.9% and CET1 at 12.3% as of FY24.

Outlook and guidance

• 2025 ROE guidance is around 16%, with expectations to approach the 18% midterm target by year-end.

• High single-digit loan growth anticipated, led by commercial banking and consumer portfolio recovery.

• NIM for Interbank expected above 5.4%, with cost of risk for banking to remain around 3%.

• Capital ratios expected to remain robust, with total capital above 15% and CET1 above 11%.

• Focus remains on efficiency, customer experience, and strengthening the payments ecosystem.