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01/11 04:03
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance, including record high revenue, significant net income growth, and improved ROE. Despite some concerns in the Q&A regarding consumer loan recovery and Telefonica provisions, the overall sentiment remains positive with optimistic guidance on NIM and cost of funds. The lack of a shareholder return plan is a slight negative, but the company's robust financial metrics and growth in digital and retail sectors outweigh these concerns. Given the small-cap nature of the stock, a positive market reaction is likely.
Net Income PEN 446 million, up 3.2 times year-over-year, primarily due to improved banking results and a positive quarter in insurance.
Return on Equity (ROE) 16.3%, up from previous year, driven by lower cost of risk and cost of funds.
Cost of Risk 2.8%, down 190 basis points year-over-year, although 20 basis points higher than the previous quarter due to Telefonica impact.
Cost of Funds Stable this quarter, improved by 80 basis points year-over-year due to fast repricing and better funding mix.
Retail Premiums Grew 36% year-over-year, driven by annuities and life insurance.
Assets Under Management Grew 16% year-over-year, reaching a new all-time high.
Loan Growth Total loan growth of 8.2% year-over-year, with commercial loans up 19%.
Consumer Loans Decreased by 4.8% year-over-year but stabilized in the last two quarters.
Mortgages Increased by 7% year-over-year, gaining market share.
Digital Retail Customers Grew by 16% year-over-year.
Plin Active Users Increased by 20% year-over-year.
Transactional Volumes from Izipay App Increased 2.8 times year-over-year.
NPL Coverage Ratio Stable above 140%.
Risk-Adjusted NIM Improved by 120 basis points year-over-year.
Cost to Income Ratio Around 35%, below guidance.
Sustainable Portfolio Grew to $380 million, a $40 million increase compared to 2024.
Digital Excellence: Our key strategic priority at IFS is to achieve digital excellence for our customers and fostering primary relationships.
Izipay and Interbank Synergies: Izipay and Interbank continue to seize business opportunities together, while Plin keeps increasing the engagement of users fostering more primary banking relationships.
Wealth Management Growth: Our Wealth Management segment Inteligo continues a positive dynamic with clients as assets under management reached a new all-time high, growing by 16% year-over-year.
Market Share in Loans: We managed to increase our market share in loans, strengthening our position as the third largest bank in the country.
Commercial Banking Growth: The commercial loan book experienced significant growth this year, with a 19% year-over-year increase.
Retail Digital Customers: Our retail primary banking customers grew 15% in the last year.
Cost of Risk: Our quarterly cost of risk stood at 2.8% which is 190 basis points below last year.
Cost of Funds Improvement: The cost of funds remained stable this quarter, although showing an improvement on a year-over-year basis of 80 basis points.
Loan Growth: Total loan growth of 8.2% in a context where the overall market has grown only around 2%.
Digital Strategy: We aim to become a leading digital platform with profitable growth.
Customer-Centric Approach: We strive to build primary relationships by placing the customer at the center of our decisions and offering the best digital experience.
Sustainability Initiatives: We have established an eco-efficiency committee with representation from each of our subsidiaries.
Economic Volatility: 2025 is a pre-electoral year in Peru, which could generate some volatility in the economy.
Global Economic Factors: External factors impacting global growth, with the IMF adjusting global growth estimates downward by 0.5%.
Trade Relations: The trade war escalation could have repercussions on Peru's growth for 2026 and beyond.
Cost of Risk: The cost of risk increased by 20 basis points compared to the previous quarter due to provisions related to Telefonica.
Regulatory Environment: Uncertainty in the business environment due to evolving economic policies in the United States.
Market Competition: Increased competition in the banking sector as Interbank aims to strengthen its market share.
Consumer Portfolio Stability: The consumer portfolio has stabilized but still shows a decrease of 4.8% year-over-year.
Provisions Impact: An impact of around PEN144 million in provisions due to Telefonica's deterioration.
Key Strategic Priority: Achieve digital excellence for customers and foster primary relationships, aiming to become a leading digital platform with a focus on profitable growth.
Market Share Growth: Interbank increased market share in loans by over 120 basis points, becoming the third largest bank in Peru.
Digital Strategy: Enhancing digital capabilities through Izipay and Plin to foster primary banking relationships and increase transaction volumes.
Insurance and Wealth Management Growth: Continued growth in insurance and wealth management, with assets under management reaching a new all-time high.
Revenue Expectations: Expecting continued positive trends in revenue growth, with a net income of PEN 446 million for Q1 2025, 3.2 times last year's results.
ROE Guidance: ROE for Q1 2025 was 16.3%, in line with guidance for 2025, setting a path towards long-term goals.
Loan Growth Guidance: Total loan growth of 8.2% year-over-year, with expectations for continued growth in the consumer portfolio.
Cost of Risk Guidance: Cost of risk remains in line with guidance, with a quarterly cost of risk at 2.8%.
NIM Guidance: Expecting recovery of NIM for the rest of the year as cost of funds improve and yield on loans recovers.
Cost to Income Guidance: Cost to income ratio around 35%, below guidance.
Shareholder Return Plan: Intercorp Financial Services has not explicitly mentioned a shareholder return plan, including any share buyback or dividend program during the Q1 2025 earnings call.
The earnings call presents strong financial performance with significant net income growth, improved NIM, and low cost of risk. Despite some uncertainties like the Rutas de Lima impairment, the impact is minimal. Positive trends in loan portfolio growth, insurance premiums, and wealth management assets support a favorable outlook. Additionally, strategic investments and digital engagement indicate a robust future. While management's vague responses on certain issues may raise concerns, the overall sentiment is positive, suggesting a likely stock price increase of 2% to 8%.
The earnings call reveals strong financial performance, including a significant increase in net income and ROE, improved cost of risk, and growth in retail banking customers. Despite a slight decline in loan yields, other financial metrics like AUM and insurance premiums show robust growth. The Q&A session supports this positive outlook, with expectations for improved NIM and manageable OpEx growth. The market cap indicates a potential positive reaction, likely in the 2% to 8% range, given the overall strong financial health and optimistic guidance.
The earnings call highlights strong financial performance, including record high revenue, significant net income growth, and improved ROE. Despite some concerns in the Q&A regarding consumer loan recovery and Telefonica provisions, the overall sentiment remains positive with optimistic guidance on NIM and cost of funds. The lack of a shareholder return plan is a slight negative, but the company's robust financial metrics and growth in digital and retail sectors outweigh these concerns. Given the small-cap nature of the stock, a positive market reaction is likely.
The earnings call reveals mixed signals: strong financial performance, with net income more than doubling YoY and ROE above 15%, suggest positive sentiment. However, issues like operational and data security risks, lack of explicit shareholder return plans, and cautious guidance on loan growth and regulatory risks introduce uncertainties. The market cap indicates moderate volatility, and with no major catalysts like partnerships or secondary offerings, the stock is likely to remain stable, resulting in a neutral outlook.
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