Intercorp Financial Services' Q1 2025: Unpacking Key Contradictions on Earnings, Credit Growth, and Cost of Funds

The impact of the Telefonica corporate case on earnings, consumer credit recovery and loan growth expectations, cost of risk expectations, credit card growth expectations, and cost of funds improvement are the key contradictions discussed in Intercorp Financial Services' latest 2025Q1 earnings call.



Strong Financial Performance and Profitability:
- Intercorp Financial Services reported a net income of PEN446 million with a ROE exceeding 16% in Q1 2025.
- The company's strong performance was driven by improvements in both cost of risk and cost of funds.

Commercial Banking Growth:
- Interbank increased its market share in commercial banking by 120 basis points, reaching an all-time high of nearly 11%.
- This growth was driven by gains in market share through commercial banking and synergies with Izipay.

Insurance and Wealth Management Expansion:
- The insurance segment reported a 36% growth in retail premiums, led by annuities and life insurance, while assets under management in wealth management grew by 16%.
- Growth was supported by strong performance in key business segments and digital initiatives.

Cost of Risk Reduction:
- The cost of risk for the company stood at 2.8%, with the retail cost of risk reducing consistently by 380 basis points.
- This improvement was due to better economic indicators and enhanced customer risk profiles.

Digital Strategy and Customer Engagement:
- Retail primary banking customers grew by 15%, with digital clients representing more than 80% of the total.
- The digital focus improved customer engagement and led to increased transaction volumes and primary banking relationships.