Intercorp Financial Services Q2 2025: Navigating Contradictions in Credit Growth, NIM, and ROE Expectations

Credit card portfolio growth and market position, consumer loan recovery and growth expectations, net interest margin expectations, inflation and cost growth expectations, and ROE targets and expectations are the key contradictions discussed in Intercorp Financial Services' latest 2025Q2 earnings call.



Financial Performance and Growth:
- Intercorp Financial Services (IFS) reported a net income of PEN 580 million for the second quarter of 2025, with an ROE of 21%.
- The growth was driven by solid investment results and strong performance in core businesses across their subsidiaries, particularly in wealth management.

Consumer Portfolio and Risk Management:
- The consumer portfolio saw a 0.6% growth in the last quarter, with improved risk-adjusted NIM.
- This trend was supported by a lower risk portfolio mix and improving household purchasing power, which reduced the cost of risk.

Commercial Banking and Market Share:
- Interbank gained 90 basis points in market share within the commercial banking segment, driven by strategic focus on midsized companies and strong synergies with Izipay.
- This growth was supported by increased client engagement and enhanced primary banking relationships.

Digital Transformation and Engagement:
- IFS retail primary banking customers grew by 10% in the last year, and PLIN active users increased by 13%, reaching 2.4 million monthly users.
- The increase in digital engagement was driven by a focus on P2M payments and expanded use cases, such as PLIN metropolitano, enhancing transaction volumes.

Wealth Management and Asset Growth:
- Assets under management in wealth management increased by 14% year-over-year, reaching $7.8 billion.
- This was attributed to strong investment results and positive client engagement, with investment returns of 17% over the past year.