Intercorp Financial Services Inc.

IFS reported net income of PEN 640 million and ROE of 18.5% for the quarter. Revenue increased 3% year over year and expenses increased 11% year over year; cost-to-income was 37%. Risk-adjusted NIM was 3.5%, up 10 basis points year over year, while cost of risk was 2.1% versus 1.4% last quarter and 2.5% a year ago. Higher-yielding loans grew 12% year over year and almost 6% in the quarter; retail primary banking customers grew 16%, premiums rose 9% year over year, and assets under management were up 14% year over year. For 2026, management reiterated full-year ROE above 17%, high-single-digit loan growth, and a cost-to-income ratio around 37%. Management said NIM should recover in the second half as temporary funding pressures ease and higher-yielding loan growth flows through; they also expect to book forward-looking El Niño-related provisions in the second half, likely in 3Q and 4Q.

Luis Felipe Castellanos framed the quarter as solid despite a more moderate macro backdrop in Peru and highlighted constructive domestic demand, improving employment, and a new government that is emphasizing security, investment, and public-sector modernization. He repeatedly stressed prudence around El Niño and sticky inflation, saying the company is monitoring risks closely and expects any impact to show up in the second half. Strategically, he emphasized profitable growth, deeper customer relationships, digital investment, and the strength of a diversified platform across banking, insurance, and wealth management.

Michela Casassa emphasized that profitability remained strong, with ROE at 18.5%, while higher-yielding loans accelerated 12% year over year and risk-adjusted NIM held at 3.5%. She explained that cost of risk rose to 2.1% as normalization from an unusually low first quarter and from mix shift toward higher-yielding segments, while noting it remained below risk appetite and below 2.5% a year ago. On funding and capital allocation, she said funding costs rose 20 basis points quarter over quarter due to temporary factors including inflation-linked funding, the first full quarter of bond issuance, arbitrage-related funding needs, and conservative election-period liquidity; she also said deposits are still more than 80% of total funding and cost of deposits fell to 2.4% year over year. Expenses were up 11% year over year due to personnel and technology investments, but efficiency stayed best-in-class at 37%.

Analysts pressed management on El Niño provisioning, ROE sustainability, margin pressure, and higher cash balances. Management said it is too early to commit to a specific El Niño provision amount, but expects to book forward-looking provisions in the second half and believes the portfolio is less risky than in 2023, with the consumer book more likely to be affected than corporates. On margins, management said the second-quarter NIM pressure was driven by temporary funding and liquidity factors, including inflation-linked funding, bond issuance, arbitrage funding, and election-related excess liquidity, and expects recovery as higher-yielding consumer and SME loans flow through. They also confirmed a theoretical sensitivity of roughly 10 basis points of NIM impact for each 100 basis point increase in sol rates, while the dollar is described as largely neutral.