Intercorp Financial Services (IFS) Q4 2024 earnings summary

Executive summary

• 2024 saw a strong recovery with Peru's GDP growth at 3.2%, stable inflation, and a resilient sol, supporting improved macroeconomic sentiment and expectations for continued growth in 2025, though with caution due to pre-electoral volatility.

• 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 for 4Q24 was 18.2%.

• Strategic focus remains on digital transformation, profitable growth, and expanding primary banking relationships, with digital adoption rates exceeding 80% in retail and 70% in commercial banking.

• 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

• 4Q24 net profit reached S/ 490 million (+71% YoY), with quarterly ROE at 18.2%; FY24 net profit was S/ 1,307 million (+21% YoY), with annual ROE at 12.6%.

• Cost of risk dropped to 2.6% in 4Q24, down from 5.2% in 4Q23 and 3.1% in 3Q24.

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

• Net interest and similar income grew 0.5% year-over-year; other income rose 41.9%.

• Loan portfolio grew 6.5% over two years, with commercial loans up 17% year-over-year.

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 expected, led by commercial banking and consumer portfolio recovery.

• NIM for Interbank projected above 5.4%, cost of risk to remain around 3%, and cost-income ratio targeted at 37%.

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

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