Intercorp Financial Services (IFS) Q4 2024 earnings summary

Executive summary

• 2024 marked a strong recovery, with Peru's GDP growth at 3.1% for the year and 3.7% in Q4, positioning the country as a regional growth leader.

• Net profit for 2024 reached S/ 1,307.5 million, up 21.1% year-over-year, with 4Q24 net profit at S/ 490.1 million, up 71.3% year-over-year and 25.7% sequentially; annualized ROE was 18.2% in Q4 and 12.6% for the year.

• Strategic focus remains on digital excellence, with over 80% of retail and 70% of commercial customers using digital channels.

• Strengthened commercial and payments ecosystem, with significant growth in Izipay flows and digital transactions.

• Efficiency ratio improved to 35.8% in 4Q24 from 36.2% in 4Q23.

Financial highlights

• Net income reached S/ 490 million in Q4, up 71% year-over-year and 26% from the previous quarter; FY24 net profit was S/ 1,307 million, up 21% year-over-year.

• ROE for Q4 was 18.2%, aligning with midterm targets; full-year ROE was 12.6%.

• Cost of risk decreased to 2.6% in Q4, 180 bps below last year and 50 bps lower sequentially; FY24 cost of risk was 3.6%.

• Efficiency ratio improved to 35.8% in 4Q24 and 37.4% for FY24.

• NIM was stable at 5.3% in 4Q24 and FY24.

Outlook and guidance

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

• Loan growth projected at high single digits, above system average, led by commercial banking and consumer portfolio recovery.

• NIM for Interbank expected to recover above 5.4% as funding mix improves.

• Cost of risk for banking expected to remain sound at around 3%.

• Cost-income ratio targeted at 37% for 2025.