Intercorp Financial Services Q3 2025 Earnings Report

Intercorp Financial Services EPS Results

• Actual EPS: $1.12
• Consensus EPS: $1.16
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: N/A

Intercorp Financial Services Revenue Results

• Actual Revenue: $452.42 million
• Expected Revenue: $441.08 million
• Beat/Miss: Beat by +$11.34 million
• YoY Revenue Growth: N/A

Intercorp Financial Services Announcement Details

• Quarter: Q3 2025
• Date: 11/7/2025
• Time: After Market Closes
• Conference Call Date: Friday, November 7, 2025
• Conference Call Time: 9:00AM ET

Intercorp Financial Services (NYSE:IFS) (NYSE:IFS) is a Lima-based financial holding company that brings together a suite of banking and non-banking financial businesses under the Intercorp Group umbrella. Through its network of subsidiaries, the company provides a broad range of products and services designed to meet the needs of individual consumers, small and medium-sized enterprises, and large corporations across Peru.

The company’s core banking operations are conducted through Interbank, which offers deposit accounts, personal and business loans, credit and debit cards, trade finance and electronic banking solutions. Complementing its banking arm, IFS delivers insurance and pension products via Interseguro, which provides life and property insurance and manages retirement savings plans. Asset management and mutual fund services are offered through Interfondos, giving clients access to diversified investment portfolios and wealth-management support.

Intercorp Financial Services completed its initial public offering on the New York Stock Exchange in September 2014, becoming one of the first Peruvian financial enterprises to list in the United States. As part of the wider Intercorp Group, IFS leverages local market expertise, digital platforms and a focus on financial inclusion to drive growth. Its operations are concentrated in urban centers throughout Peru, with an ongoing emphasis on expanding outreach via mobile and online channels.

Intercorp Financial Services Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Intercorp reported a strong quarter with net income of PEN 456 million, accumulated net income up 81% year‑over‑year and an ROE of ~16% (would be ~18.3% excluding the Rutas de Lima one‑off).
• Negative Sentiment: Management booked a PEN 78 million provision for the Rutas de Lima concession, has recognized ~40% impairment so far, and retains residual exposure of about $60 million (≈<1% of the investment book) with legal proceedings and uncertainty ongoing.
• Positive Sentiment: The loan mix is shifting toward higher‑yielding products (higher‑yield loans +7% YoY, consumer & small business now ~22% of the portfolio), helping improve margins as risk‑adjusted NIM rose ~40 bps q/q to ~3.8% while cost of risk remains low (~2.1%).
• Positive Sentiment: Digital and payments traction is strong — PLIN monthly active users ~2.5 million, EasyPay flows +60% YoY, digital retail customers at 83% — supporting deposit growth and a lower cost of funds (cost of deposits down ~40 bps YoY).
• Positive Sentiment: Wealth and insurance continue double‑digit expansion: Inteligo AUM reached $8.1 billion with fee income +16% YoY, and Interseguro retail premiums grew ~58% YoY, driven by private annuities and life products.

Presentation

[Operator]

Good morning and welcome to Intercorp Financial Services third quarter 2025 Conference call. All lines have been placed on mute to prevent any background noise. Please be advised that today's conference is being recorded. After the presentation, we'll open the floor to questions. At that time, instructions will be given as to the procedure to follow if you would like to ask a question. Also, you can submit online questions at any time today using the window on the webcast, and they will be answered after the presentation during the question-and-answer session. Simply type your Question in the box and click Submit Question. It is now my pleasure to turn the call over to Ivan Peill from InspIR Group. Sir, you may begin.

[Ivan Peill, MD at InspIR Group]

Thank you and good morning, everyone. On today's call, Intercorp Financial Services will discuss its third quarter 2025 earnings. We are very pleased to have with us Mr. Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services; Ms. Michela Casassa, Chief Financial Officer, Intercorp Financial Services; Mr. Carlos Tori, Chief Executive Officer, Interbank; Mr. Gonzalo Basadre, Chief Executive Officer, Interseguro; Mr. Bruno Ferreccio, Chief Executive Officer, Inteligo. They will be discussing the results that were distributed by the company yesterday. There is also a webcast video presentation to accompany the discussion during this call. If you did not receive a copy of the presentation or the earnings report, they are now available on the company's website, ifs.com.pe. Otherwise, if you need any assistance today, please call InspIR Group in New York on 646-940-8843. We would like to remind you that today's call is for investors and analysts only.

[Ivan Peill, MD at InspIR Group]

Therefore, questions from the media will not be taken. Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's financial performance, or financial results. As such, statements made are based on several assumptions and factors that could change, causing actual results to materially differ from the current expectations. For a complete note on forward-looking statements, please refer to the earnings presentation and report issued yesterday. It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercorp Financial Services, for his opening remarks. Mr. Castellanos, please go ahead, sir.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Thank you. Good morning and thank you all for joining our third quarter 2025 earnings call. Thank you all for your interest and trust in IFS. We appreciate your continued support. We have continued to observe positive performance in Peru's economy, with cumulative growth of 3.3% as of August. This momentum has been driven by increased activity in consumption-related sectors and sustained private investment, which is projected to grow by 6.5% by year-end. While we are maintaining a cautious outlook given the international context and the pre-election period, Peru continues to benefit from a low inflation environment and a solid exchange rate, which has appreciated close to 10% this year. The country risk remains low. Even with the latest presidential transition, we have not seen additional volatility. These factors reinforce Peru's position as one of the most dynamic and stable economies in the region.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

The political transition expected in 2026 does not suggest any major changes in financial stability. Prudent monetary management and strong institutions allow us to forecast continued growth, supported by the resilience of the local market and investors' confidence. This quarter, Intercorp Financial Services has sustained strong core results and profitability, with an ROE of around 16%, even after a specific investment impact related to Rutas de Lima, with a provision of PEN 78 million this quarter. As you may be aware, the Rutas de Lima concession has become an ongoing issue between the Municipality of Lima and the concessioner. What is currently reflected in our books corresponds to the information available as of the reporting date. We're closely monitoring the situation as new developments unfold. Local and international legal proceedings will continue in the following months, with final resolution not expected in the short term.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Our total remaining exposure after impairments today amounts to approximately $60 million in PEN equivalent, which represents less than 1% of our investment book at IFS. These results confirm our ability to adapt quickly and keep generating value in a challenging environment, reaffirming our commitment to long-term sustainability and profitability. Interbank continues to grow in higher-yielding loans, particularly in consumer and small business segments, now representing 22% of our loan portfolio. Stronger net interest margin and better-than-expected cost of risk have driven a solid improvement in risk-adjusted NIM, highlighting our discipline in effective risk and profitability management. Easy Pay and Interbank continue to capture joint business opportunities, while Plin deepens user engagement, fostering more primary banking relationships and driving growth. Interseguro continues to grow its core business, with solid performance in private annuities and life insurance, even after the negative impact from Rutas de Lima this quarter.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

In addition, Interseguro continues to leverage synergies with Inteligo to expand private annuity sales and collaborating with Interbank to advance integrated bank assurance solutions that deliver greater value for our customers. Inteligo, our wealth management segment, also continues to grow double-digit, achieving new record highs in assets under management thanks to our clients' trust and consistent engagement. IFS remains committed to our strategy of focused and profitable growth, keeping our clients at the center of every decision. Our priority is to achieve digital excellence and deepen primary client relationships through comprehensive data-driven services and a differentiated experience, powered by our innovation and advanced analytic capabilities as our competitive advantage. Looking ahead, we remain optimistic about IFS's and Peru's outlook. The company has demonstrated resilience in downturns and is well-positioned to continue executing its growth strategy, maintaining profitability, and reinforcing our leadership in the Peruvian market.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Now, let me pass it on to Michela for further explanation of this quarter's result. Thank you.

[Michela Casassa, CFO at Intercorp Financial Services]

Thank you, Luis Felipe. Good morning and welcome, everyone, to Intercorp Financial Services' third quarter earnings call. We would like to start with our key messages for the quarter. We had a very good third quarter as business momentum remains strong. Our accumulated net income is up by 81% compared to the same period last year, accumulating 17.4% ROE, which would have been 18.3% excluding the one-off from Rutas de Lima. Net income from the quarter was PEN 456 million, with an ROE of around 16%. Second key message, higher-yielding loans accelerated, showing a 7% growth on a year-over-year basis and 3% in the last quarter. Third, risk-adjusted NIM continues with a positive trend, increasing 40 basis points in the last quarter, now at 3.8%, still with a low cost of risk of 2.1% and with some positive signs in the NIM, recovering 10 basis points in the quarter.

[Michela Casassa, CFO at Intercorp Financial Services]

Fourth, we continue to strengthen primary banking relationships, and as a result, our retail primary banking customers grew 6% last year. Fifth, we had double-digit growth in our core business in wealth management and insurance, with retail premiums growing by 58% year-over-year due to the growth in private annuities and life insurance, and wealth management assets under management are at new record highs with continuous double-digit growth quarter to quarter. Let's start with our first key message. Let me share an overview of the macroeconomic environment. Peru's GDP growth accelerated in the third quarter, with the central bank revising its 2025 estimate upward to 3.2%, supported by strong non-primary sector activity such as agriculture and mining. August growth reached 3.2%, bringing the year-to-date expansion to 3.3%. Agriculture grew by 6.4%, fueled by high international demand, and mining remains strong.

[Michela Casassa, CFO at Intercorp Financial Services]

Construction services and commerce also saw growth above 5%, demonstrating solid domestic momentum. Private spending has been a key factor behind the economic growth throughout the year. Macroeconomic fundamentals remain stable, with inflation contained near 1.7% for 2025. The Peruvian sol has strengthened around 10% this year, and the reference rate lowered to 4.25%, maintaining favorable financial conditions for ongoing growth. Overall, with a GDP growth projection of 2.9% for 2026 by the Central bank, Peru is establishing itself as one of the fastest-growing economies in the region, despite internal and external challenges. The Peruvian economy holds positive prospects for the coming years as it is well-positioned to meet the global demand for commodities. Nevertheless, risks remain, particularly those related to political uncertainty and global market volatility.

[Michela Casassa, CFO at Intercorp Financial Services]

On slide 5, high prices for copper and gold continue to be one of the key drivers of Peru's economic growth, boosting export revenues, encouraging investment in mining and related sectors, and supporting job creation. As a result, Peru's terms of trade are expected to remain at historic highs. In line with the positive economic environment, business expectations remain stable within optimistic ranges, and consumer confidence continues to improve, supporting domestic demand. The internal demand projection for 2025 has been revised upward by the central bank to 5.1%, driven mainly by solid growth in private investment and consumption. In the first six months of the year, internal demand expanded by 6.2%, with private investment up 9%, led by double-digit growth in Non-Mining Investments and private consumption rising by 3.7%.

[Michela Casassa, CFO at Intercorp Financial Services]

Looking ahead to 2026, internal demand is expected to moderate to 2.9%, with private consumption stabilizing at 2.9% and private investment reaching 3.5%. Additionally, there is an extensive pipeline of projects in mining and infrastructure scheduled for the coming years. In this environment, while we observe an acceleration in retail lending during the third quarter, we anticipate that this pace will likely moderate during the last quarter of the year, given the expected outflows from the private pension funds. On slide 6, during the third quarter, we achieved a 17% year-over-year increase in earnings, reaching an ROE close to 16%. That said, this ROE marks a slight decrease from the previous quarter, mainly due to two factors. First, the last quarter, Inteligo delivered results related to an investment portfolio that surpassed expectations.

[Michela Casassa, CFO at Intercorp Financial Services]

Second, this quarter, Interseguro registered the impact of the Rutas de Lima provision of PEN 78 million, as previously mentioned. On a positive note, the bank saw a reversal of provisions related to Integratel, previously Telefónica, for PEN 20 million. If we exclude Rutas de Lima and Integratel, IFS' ROE would stand at 17.5%, which brings us closer to our medium-term target. I want to particularly highlight the bank's strong performance this quarter, which is not only attributed to a lower cost of risk, but also to an improved net interest margin in line with growth of higher-yielding loans, fee income, and positive results from the investment portfolio. Excluding the effect from Integratel, the bank's ROE would have been 16%, which represents an improvement both year-over-year and compared to the previous quarter. Furthermore, the core business of Interseguro and Inteligo continue to post double-digit growth.

[Michela Casassa, CFO at Intercorp Financial Services]

On slide 7, I would like to highlight the positive trend of our ROE throughout the year. For the first nine months of 2025, our ROE stands at 17.4%, and excluding the Rutas de Lima effect, ROE would have reached 18.3%. This has been a solid quarter across all IFS business lines, with our core operations as the main drivers of profitability. This performance positions us well to continue advancing toward our medium-term goals. On slide 8, our accumulated earnings are up 81% compared to the same period last year, with an accumulated ROE at 17.4%. Both Interbank and Interseguro have achieved relevant growth, each posting increases of more than 60% year-over-year. Inteligo, in particular, has seen its earnings more than triple, which speaks to the strength and resilience of our diversified portfolio. Another positive highlight is the growing diversification of IFS earnings.

[Michela Casassa, CFO at Intercorp Financial Services]

In the first nine months of the year, the bank contributed around 70% of total earnings, showing the increasing relevance of our other segments. Now, let's turn to slide 9, where we take a closer look at IFS revenues, which grew 9% year-over-year. At the bank level, top line is growing 4% in the quarter, as we are beginning to see a recovery in our net interest margin on top of good results in fee income. This is driven primarily by accelerated growth in the higher-yielding loans, which starts to positively impact our average yield. Interseguro continues to demonstrate strong revenue trends in line with high investment valuations, while insurance results improved thanks to growth in annuities. Finally, at Inteligo, fee income continues to grow, and the portfolio results have returned to more normalized levels.

[Michela Casassa, CFO at Intercorp Financial Services]

On slide 10, we wanted to double-click on the fee income evolution, which continues to demonstrate good dynamics with a cumulative 8% increase year-over-year. At the bank level, this growth is supported by retail on one hand, given the increased debit and credit card activity, and by commercial banking on the other, reflecting results from our strategy of deepened client relationships and strengthening our ecosystem. Wealth management also posted notable growth, with fee income increasing 17% year-over-year as a result of the ongoing expansion in assets under management. In line with our strategy, the transformation of our acquiring business model continues, positioning EasyPay as a key complementary component within our commercial banking product suite. This has enabled us to strengthen client relationships and increase float balances, although it has resulted in a compression of merchant margins impacting fee income.

[Michela Casassa, CFO at Intercorp Financial Services]

These developments are taking place amid growing competition in the market and the fast adoption of QR codes with no fees. On slide 11, IFS expenses increased by 6% year-over-year as we continue to make strategic investments to support our long-term growth ambitions. This includes accelerated investments in technology to strengthen resilience, enhance user experience, improve cybersecurity, expand our capacity, and develop AI capabilities, alongside ongoing efforts to strengthen leadership within key teams, reflecting our recognition of the pivotal role talent plays in delivering our strategy. Consequently, the cost-to-income ratio at IFS level stands at 37.7%. Now, let's move on to the second key message. On slide 13, we see a positive trend in higher-yielding loans. Our total loan portfolio expanded by over 5% year-over-year, outperforming the market.

[Michela Casassa, CFO at Intercorp Financial Services]

This positive momentum was driven by the acceleration in higher-yielding loans, which grew 7% over the past year and 3% in the last quarter. The robust macroeconomic activity is reflected in increased disbursement by 34% in cash loans and by 56% in small businesses. In this last case, most of our current disbursements are now traditional loans, which include sales financing, collateralized loans, and unsecured loans, which have higher rates compared to last year's Impulso Mi Perú loans. This segment continues to expand, with average rates increasing by over 150 basis points in the past year. Overall, in retail banking, the affluence segment was the one which started the recovering growth, with an 8% growth year-over-year and 2% in the last quarter. The mass market segment has now grown for two straight quarters, increasing 3% in the last quarter and beginning to regain scale.

[Michela Casassa, CFO at Intercorp Financial Services]

On the commercial side, the decline in the quarter is mainly attributable to the corporate segment, impacted by loan maturities and by some companies turning to the capital markets. However, mid-sized companies continue to perform well, up 5% year-over-year, and small businesses up 33% year-over-year, now representing almost 4% of our total portfolio. On slide 14, we wanted to double-click on the consumer portfolio, which accelerated in the last quarter. In personal loans, we've seen a significant uplift in digital channel performance, driven by enhanced personalization of communication journeys and continuous improvements to our website. Disbursements rose 51%, supported by increased lead generation and additional loans to existing customers. We also redesigned our pricing strategy with a customer-centric approach, enhancing our value proposition and driving higher conversion rates. The current mix starts to shift toward higher-yielding segments, supported by growth in the mass market clients with good risk profile.

[Michela Casassa, CFO at Intercorp Financial Services]

Still, the retail cost of risk is at very low levels. In credit cards, transactional activity continues to grow as turnover rose 9% year-over-year. Looking ahead, we remain optimistic about our growth prospects, although we recognize that challenges persist. In particular, pension fund withdrawals would likely affect consumer loan disbursement in the coming quarters. Nevertheless, our continuous focus on higher-yielding segments and prudent portfolio management position us well to navigate these market conditions. As part of our strategy, we continue to strengthen our payments ecosystem with PLIN and EasyPay. On slide 15, we have continued working to generate further synergies as we drive the growth of our payment ecosystem, focusing on increasing transactional volumes, offering value-added services, and leveraging EasyPay as both a distribution network for Interbank products and a source to increase float.

[Michela Casassa, CFO at Intercorp Financial Services]

In particular, the commercial teams from both EasyPay and the bank are collaborating more efficiently, allowing us to deliver integrated solutions and maximize the value we bring to our clients. PLIN transactions grew 38% over the last year, and our digital retail customers reached 83%. We introduced PLIN Corredores, extending our digital payment services to the transport sector through Metropolitan Corredores, and we recently launched PLIN WhatsApp, offering a new digital experience for our clients, which allows them to pay without using the app directly from WhatsApp, both by typing the instructions and through voice, boosted by AI. This is our first example of conversational banking, and we will continue to evolve this offering with new features in the near future. Continuing with our strategy, EasyPay continues to show strong momentum in the small business segment, with flows from EasyPay up 60% over the past year.

[Michela Casassa, CFO at Intercorp Financial Services]

This growth has contributed to the 20% increase in deposits, which now account for 10% of wholesale deposits or 26% of wholesale low-cost deposits. The flows from EasyPay expanded by 31% in the same period, as Interbank's share of EasyPay flow is around 39%. Following with the third message, we see improvement in risk-adjusted NIM. On slide 17, let me share a quick update on asset quality. Our quarterly cost of risk continues on a low level at 2.1% in the quarter, or 2.3%, including the one-off impact related to the Integratel provision reversal previous Telefónica. On the retail segment, the cost of risk continues to decrease, now standing at 4%, representing a decline of 130 basis points compared to the prior year, still below our risk appetite.

[Michela Casassa, CFO at Intercorp Financial Services]

Our consumer lending portfolio is performing well, with cost of risk dropping from around 9% to 7% year-over-year, supported by healthier customers with new lows, while new loans are showing a good performance in the new vintages. On the commercial side, asset quality remains robust. The cost of risk stands at approximately 0.4%, excluding Integratel, and performance has been stable throughout the year. Looking ahead, as our consumer and small business portfolios keep expanding, now representing 22% of our total portfolio, we should expect the cost of risk to gradually increase. Still, our non-performing loan ratios are holding steady, and our coverage levels are solid above 140%. All in all, these results underscore an improving operating environment and demonstrate that our prudent approach to portfolio management is enabling us to deliver sustainable growth. On slide 18, there are some good news to highlight in terms of yields and risk-adjusted NIM.

[Michela Casassa, CFO at Intercorp Financial Services]

Over the past quarter, our risk-adjusted NIM improved by 60 basis points, with a notable 40 basis points increase in the last quarter, in line with the lower cost of risk, as previously mentioned. The good news is that yields started to recover last quarter, rising by 10 basis points. This recovery was driven by higher rates in both retail and commercial banking, especially within higher-yielding loans, where we observed more than a 30 basis points improvement in the average yield. Additionally, part of the improvement in yields can also be attributed to the acceleration in growth of our mass market segment, which continues to gain momentum and contribute positively to our results. As a result, NIM saw a 10 basis point increase quarter over quarter.

[Michela Casassa, CFO at Intercorp Financial Services]

On slide 19, the cost of deposits declined by 40 basis points year-over-year and 10 additional basis points in the quarter, supported by lower market rates and a healthier funding mix with a focus on low-cost funds. Deposits have also become a more relevant part of our funding structure, representing around 81%. Although there is a seasonal decrease in total deposits, we are expecting a recovery towards year-end, as we expect to capture a nice part of the pension funds withdrawals, similar to what we achieved in the previous withdrawals. Cost of deposits continues to show a clearly positive trend, as we see further potential for reduction going forward, as the portion of efficient funding, now at 36%, continues to improve.

[Michela Casassa, CFO at Intercorp Financial Services]

As a result, our overall cost of funds fell by 50 basis points compared to last year and 10 basis points during the quarter, with a loan-to-deposit ratio at 96%, in line with the industry average. Moving on to our digital strategy, we continue to drive meaningful value and strengthen primary banking relationships through our digital initiative, particularly with PLIN. Over the past year, we have grown our retail primary banking customer base by 6%, now representing more than 34% of our total retail clients. Monthly active PLIN users reached 2.5 million, each completing an average of 27 transactions for a total of 38% more transactions versus last year. P2M payments remains a core driver of engagement, now accounting for 71% of all transactions. Within this segment, QR POS payments expanded to 2.6 million monthly transactions, up 44% year-over-year.

[Michela Casassa, CFO at Intercorp Financial Services]

Finally, we believe we have solid key performance indicators that continue to improve. For example, our inflow payroll accounts hold around 13% market share, retail deposits are at approximately 15%, and credit cards account for about 26%. All of these metrics are supported by an NPS of 56, reflecting our commitment to customer satisfaction and loyalty. On slide 22, we continue to see good trends in our digital indicators compared to last year, as we remain focused on developing solutions that meet our customers' evolving needs. As a result, we've seen steady growth in digital adoption. Our retail digital customers base increased from 80% to 83%, while commercial digital clients now stand at 73%. We've also made progress in self-service and digital sales. Our self-service indicator reached 82%, and digital sales climbed to 68%.

[Michela Casassa, CFO at Intercorp Financial Services]

While the latest NPS reading we have shown an improvement to 56, and our internal data reflects a clear recovery all year. This progress was reinforced by contextual and automated communications. Also, we developed predictive models with personalized outreach. Finally, we introduced a fully digital onboarding flow through Interbank.pe, empowering seamless user and password creation for the app. Finally, solid results with double-digit growth in the core businesses of wealth management and insurance. On slide 24, we highlight the strong performance in our wealth management business this quarter. Inteligo continues to show solid momentum. Assets under management have grown at a double-digit pace, reaching new highs and now totaling $8.1 billion. Fee income continues to improve, up 16% year-over-year, adding to the positive trend in results. There is a slight improvement in fees over asset under management.

[Michela Casassa, CFO at Intercorp Financial Services]

Additionally, we would like to highlight the progress we are making in synergies with the bank. We have now launched a dedicated My Investment section within the Interbank app, enabling clients to conveniently manage their investments directly from the same platform. This integration marks another step forward in delivering a unified experience for our customers, with offerings converging within business segments. On the digital front, we continue to enhance our Interfondos app, with the goal of shifting its role from a transactional platform to a true digital advisor for our mutual fund clients. As a result, we have seen a sustained increase in both the app adoption, with a 5-point year-over-year increase, and digital transactions, which grew by 2 points annually and represents more than half of all client transactions.

[Michela Casassa, CFO at Intercorp Financial Services]

Now, moving to insurance on slide 26, we continue to see good results in the contractual service margin, which grew 19% year-over-year, mainly driven by individual life. In the third quarter, reserves for individual life and annuities increased by 36% and 15%, respectively, supported by strong new business generation that more than offset the monthly amortization of the CSM. Individual life remains a key focus for us, given its low market penetration. Although traditional channels keep growing at high rates, we've been also diversifying our distribution strategy to include digital ones and simplifying the product to reach new segments and keep supporting growth. Additionally, short-term insurance premiums grew by over 110%, driven by disability and survivorship premiums acquired through a two-year bidding process from the Peruvian private pension system. On the investment side, as mentioned before, results were impacted by PEN 78 million impairment from Rutas de Lima.

[Michela Casassa, CFO at Intercorp Financial Services]

The return on the investment portfolio decreased to 4.1% and would have been 6.1% without this effect. There is still uncertainty around the timing and amount of recovery as legal proceedings continue to develop. As of today, we have provisioned around 40%; hence, our exposure net of impairments is around PEN 200 million or $60 million. In insurance, we continue to focus on enhancing the digital experience as well and expanding our sales from digital channels. The development of internal capability has allowed us to increase digital self-service to 71% from 65% of the previous year, and the direct sales to grow 19% in the last year. Now, let me move to the final part of the presentation, where we provide some takeaways. Before we move on to our operating trends, we'd like to summarize where we are focusing our growth efforts.

[Michela Casassa, CFO at Intercorp Financial Services]

In commercial banking, we have seen important growth in small business, which increased by 33% year-over-year, now with a market share of around 4%. The commercial portfolio, as a whole, grew 7% year-over-year, gaining 30 basis points of market share. This strong performance is supported by three main strategies. First, deepening relationships with key mid-sized company clients, where we continue to gain share of wallet and unlock additional cross-sale opportunities. Second, expanding our position in sales financing, where we have become the second largest player in the system. Third, leveraging synergies with EasyPay to enhance our value proposition, especially in the small business segment, where our digital and payment capabilities set us apart. In this quarter, the consumer portfolio began to show signs of growth. At the same time, the mortgage segment continued its positive trajectory, achieving a market share of 16%.

[Michela Casassa, CFO at Intercorp Financial Services]

In insurance, we are maintaining our focus on long-term products, as individual life has shown encouraging growth this past quarter. Finally, in wealth management, assets under management continued to grow at a healthy pace, up 13%, reaching new record levels, a reflection on both market performance and continued client engagement. On slide 30, let me give a review of the operating trends of the cumulated numbers as of September. Capital ratios remain at sound levels, with a total capital ratio of around 16% and core equity tier 1 ratio above 12%. Our ROE for the first nine months of the year was 17.4%, above our guidance for 2025.

[Michela Casassa, CFO at Intercorp Financial Services]

As mentioned before, we expect the last quarter to go back to more normal levels, and year-end ROE could be closer to 17%, although it remains dependent on the impact of Rutas de Lima and its potential impact on the fourth quarter, if any. For loan growth, we grew 5% year-over-year, a bit below our guidance, but still above the system. Year-end growth will likely remain at similar levels. We expect a slight recovery in NIM over the remainder of the year. On the positive side, cost of risk is expected to remain well below guidance, helping to offset lower margins. As a result, we anticipate a slight improvement in our risk-adjusted NIM for the full year. Finally, we continue to focus on efficiency at IFS, as our cost income was around 37% within guidance. On slide 31, we highlight our strong sustainability performance for the third quarter of 2025.

[Michela Casassa, CFO at Intercorp Financial Services]

On the environmental front, we have made significant progress. Our sustainable loan portfolio now exceeds or is around $350 million, supporting projects with a measurable positive impact, especially in the industrial and agricultural sectors. We enhance internal capabilities by providing climate technology training to 30 executives, boosting green finance across agriculture, fishing, energy, and mining. For the first time, we measure finance emissions in Interbank's commercial portfolio, following the PCIF standard, focusing on agriculture, fishing, and energy, which represent 18% of the portfolio. On the social side, we keep promoting inclusive growth and workplace diversity. Interbank was ranked number five in the Great Place to Work sustainable management ranking, with Interseguro, Inteligo, and EasyPay also among the best workplaces. Interbank's anti-harassment program, VOCES, was recognized by the UN Global Compact as a best practice.

[Michela Casassa, CFO at Intercorp Financial Services]

In governance, Interseguro and Inteligo published their 2024 sustainability reports, and we strengthened our participation in key ESGSS assessments. Let me finalize the presentation with some key takeaways. First, the business momentum remains strong. Second, we see higher-yielding loans accelerating. Third, we have an improving risk-adjusted NIM. Fourth, we continue to strengthen primary banking relationships. Fifth, wealth management and insurance, both core businesses growing double-digit. Thank you very much. Now, we welcome any questions you might have.

[Operator]

Thank you. At this time, we will open the floor to your questions. We will take questions from the conference call and then the webcast questions. If you would like to ask a question, please press the star key followed by the one key on your touch-tone phones now. Questions will be taken in the order in which they're received.

[Operator]

If at any time you would like to remove yourself from the questioning queue, please press star and two. Again, to ask a question, please press star and one. For the webcast viewers, please simply type your question in the box and click submit question. We'll pause momentarily to compile a list of questioners. Your first question comes from Yuri Fernandes from JPMorgan. Please go ahead with your question.

[Yuri Fernandes, Executive Director at JPMorgan]

Hi, Michela, Luis, everybody. I have a question regarding Rutas de Lima. I think this is a broader process, right? Brookfield, thorough collections, concession. It's a broad topic. I would like to understand a little bit the level of impairment you did on your exposure in the insurance company because I think Michela mentioned in the end that this could or could not be a problem in the fourth quarter. I would like to understand how much of the impairment reflects your exposure already or not, and what is your outlook for that case. A second question regarding the growth for retail in light of the pension withdrawal. How much the pension withdrawal may impact the growth? What is your growth expectations for maybe, especially I think in retail, but if you can comment a little bit more broadly, how much that can impact your growth outlook for the near term? Thank you.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Okay, Yuri. Thanks very much for your two questions. I'm going to give a crack at the answers, and then I'm going to pass it on to the team to complement. As Michela mentioned, our exposure right now considers around 40% of impairment already.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

It's tough to give you an outlook given that this, as you mentioned, this is a broader thing between Brookfield and municipality. There are legal proceedings going around. That 40% I mentioned was booked with all the information we had at the moment of the closing of the quarter. Things have evolved since then. I think it's early to really give you an expectation. However, we are closely monitoring that situation. Regarding the retail growth, the pension has a couple of effects. It's not only that it curtails growth, but it has short-term positive impacts regarding funding and people bringing money from those funds to Interbank. It has an offset, a positive offset in the cost of funds and the activity. For number one, I'm going to pass it on to Gonzalo to see if he wants to complement anything.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

For number two, I'm going to pass it on to Carlos so he can give you a little bit more on his view on the potential specific growth impact of the pension fund release. Gonzalo?

[Gonzalo Basadre, Gerente General at Interseguro Compania de Seguros]

Sure. Thanks, Luis Felipe. As Luis Felipe mentioned, we have already reduced the value of our holdings in Rutas de Lima by 40%. We're still waiting on what happens with the recurso de amparo that Rutas de Lima has placed. We'll have more information before the end of the fourth quarter where we'll be able to give a more precise value of those holdings. Still, the total position of Rutas de Lima represents less than 1% of the whole IFS investment holdings. Even though we're taking a lot of time to sort this out, its impact will not be important in the total IFS.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Thank you, Gonzalo. Carlos, can you help us in the growth question?

[Carlos Tori, CEO at Interbank]

Yes. Hello, Yuri and everyone. As Luis Felipe mentioned, the IFP withdrawals have several impacts. To answer your question, and then I'll go a little bit deeper, the last few withdrawals have flattened growth or even made the consumer loans in the market decrease 1% or 2%. That has been the effect in the past. This one might be a little bit different because there are other factors going on. The first one is in Peru, all salaried workers get a double salary in December. December, traditionally, is very liquid, and that helps, obviously, consumption reduces a little bit of outstandings, but helps with collections.

[Gonzalo Basadre, Gerente General at Interseguro Compania de Seguros]

This year, in December, we will have that, and we will have a portion, a large portion of the IFP. It will be very liquid. We expect a lot of transactions. We do not know exactly if the amount of loans will increase or stay flat, but for sure, it will have a good impact in collections and cost of risk in December. The IFP withdrawals have four parts, right?

[Carlos Tori, CEO at Interbank]

You get it in four different months, but the first month is the largest in terms of the system because the people that do not have the full amount to withdraw get it in the first one. The first one is the largest one. In addition to all of that, in November, salaried workers in Peru also get long-term compensation, let's call it, and that has also been released. There will be liquidity in November and December. There are a lot of moving parts, but again, it will be liquid. That is good for collections and for funding.

[Carlos Tori, CEO at Interbank]

There will be a lot of consumption and transactions, and then the effect on the amount of loans probably is flat or negative for one or two months, and then we will resume growth.

[Yuri Fernandes, Executive Director at JPMorgan]

Thank you, Carlos. Thank you very much. Thank you, Carlos, Gonzalo, Luis Felipe. So basically, marginally negative, good asset quality, good for deposits, maybe 1%-2% down, and then we should see a recovery in retail, right? That is basically the message.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Yes. I do not know if it is 1% or 2% or flat. To tell you the truth, we will see. It depends on the amount of consumption. But yeah, that is ballpark now. It is a short-term effect, though.

[Yuri Fernandes, Executive Director at JPMorgan]

Perfect. Thank you very much, everyone.

[Operator]

Once again, if you would like to ask a question, please press star and then one. To withdraw your question, you may press star and two.Again, that is star and then one to ask a question. In addition, for the webcast viewers, as a reminder, you may simply type your questions in the box and click submit question. Once again, we will pause momentarily to assemble the list of questioners. At this time, we will take the webcast questions. I would like to turn the floor over to Mr. Ivan Peill from InspIR Group.

[Ivan Peill, MD at InspIR Group]

Thank you, Operator. The first question comes from Daniel Mora of Credicorp Capital. Can you provide more details about the expected loan growth for 2025 and 2026?

[Daniel Mora, Equity Research Associate at Credicorp Capital]

Specifically, I want to understand whether the acceleration of credit card loans this quarter should be maintained throughout 2026. What is the expected growth of credit cards for the next year and the effect on the net interest margin?

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Okay. Great. Thank you, Daniel, for your question. Let me pass straight to Carlos. Actually, he's working budget right now. I don't know if he's going to be able to answer all the questions, but probably he has more deep sense on that front right now.

[Carlos Tori, CEO at Interbank]

Exactly. We're working on our budget. Bottom line is the third quarter, we accelerated growth in credit cards and consumer finance, and we expect to continue accelerating. I mean, having the impact of the IFP's in the short term, but in 2026, we expect to continue to accelerate. The way we look at it, or the way we look at this is usually the system grows at 2.5, 2 times GDP. Consumer loans grow at 2 times GDP. That's a multiplier. We want to gain market share. We will probably grow a little bit ahead of that.

[Carlos Tori, CEO at Interbank]

Our risk appetite has also increased slightly due to the good performance of our portfolio over the last few quarters, but also due to the expectations of the macro environment in Peru. That is kind of what we expect. This will not be linear, as I just explained. The IFPs will have a short-term effect probably the end of November, a little bit, definitely in December, and some in January. Growth should resume. NIM will grow in line with our growth in credit cards and SME's, and also will be positively affected marginally by lower cost of funds. That is kind of the expectation.

[Daniel Mora, Equity Research Associate at Credicorp Capital]

Thank you, Carlos. I think we are done.

[Operator]

There is one more question in the webcast. InspIR if you can help us.

[Ivan Peill, MD at InspIR Group]

The next question comes from Elan Comitre.

[Ivan Peill, MD at InspIR Group]

Good morning. What is your expectation for corporate-level disbursements in Peru regarding 2026 as a presidential election year? Thank you.

[Luis Felipe Castellanos, CEO at Intercorp Financial Services]

Okay. If I understand correctly, the expectation is of corporate-level disbursements. I'm trying to understand if that's corporate banking activity. Again, it's an election year activity depending on how the situation evolves. It should continue to pick up if the continued investment perspective materializes. I guess loan book growth and corporate activity should continue on a mild tone. We do not see any big project coming in line in the coming months. It is probably going to be more replenishment of working capital or small CapEx and some refinancings. Growth is probably not going to be great in that front. Let me pass it on to Carlos so he can complement to see what he is seeing.

[Carlos Tori, CEO at Interbank]

No, I agree. I agree. There are no large projects coming in line.

[Carlos Tori, CEO at Interbank]

There has been some bond offerings over the last couple of weeks of Peruvian corporates. That obviously becomes prepayment for the banks. Interest rates are more attractive for corporates than they have been. They have evolved downward. There is a lot of refinancing of short-term loans to longer. We do not foresee high growth in that segment for the next few quarters.

[Carlos Tori, CEO at Interbank]

Yeah. Great. Thank you, Carlos.

[Ivan Peill, MD at InspIR Group]

At this time, there are no further questions from the webcast. I would like to turn the call over to the operator.

[Operator]

There appear to be no further audio questions at this time. I would like to turn the floor over to management for closing remarks.

[Michela Casassa, CFO at Intercorp Financial Services]

Okay. Thank you very much. Thanks again, everybody, for joining the call. We will see each other back again to discuss our year-end results for 2025. Thanks again. Stay safe. Bye.

[Operator]

This concludes today's conference call. You may now disconnect your lines.

Participants

Executives

• Michela Casassa, CFO
• Luis Felipe Castellanos, CEO

Analysts

• Gonzalo Basadre, Gerente General at Interseguro Compania de Seguros
• Daniel Mora, Equity Research Associate at Credicorp Capital
• Yuri Fernandes, Executive Director at JPMorgan
• Analyst
• Ivan Peill, MD at InspIR Group
• Carlos Tori, CEO at Interbank