Banco Internacional del Peru (INTERBC1) H1 2024 earnings summary

Executive summary

• Net income for 2Q24 reached S/163.7 million, up S/38.7 million quarter-over-quarter, but down S/98.2 million year-over-year, driven by higher financial margin and service income, offset by increased provisions and administrative expenses.

• Annualized ROE was 8.7% in 2Q24, above 1Q24 (6.6%) but below 2Q23 (14.8%).

• Profitability improved sequentially, but annual performance was impacted by higher credit provisions and lower service income.

Financial highlights

• Gross financial margin rose 3.0% quarter-over-quarter and 1.6% year-over-year, supported by lower financial expenses.

• Net income for the first half of 2024 was S/288.7 million, down from S/575.9 million in the same period of 2023.

• EPS for the first half of 2024 was S/0.049, compared to S/0.098 in 1H23.

• Net interest margin (NIM) increased to 5.4% in 2Q24, up 30 bps quarter-over-quarter and 10 bps year-over-year.

• Provisions for loan losses rose 1.0% quarter-over-quarter and 42.5% year-over-year, reaching S/536.8 million in 2Q24.

• Administrative expenses increased 7.1% quarter-over-quarter and 1.7% year-over-year.

Outlook and guidance

• The bank continues to focus on commercial loan growth, supported by government programs such as Impulso Myperu, while managing credit risk and maintaining strong capital ratios.

• Regulatory capital requirements will increase to 10% by March 2025, but current capital ratios remain well above minimums.