Q2 2024 Intercorp Financial Services Inc Earnings Call Transcript
Key Points
- Intercorp Financial Services Inc (IFS) reported a significant improvement in net income, doubling from the previous quarter to PEN286 million.
- The company's core banking franchise showed strong growth in commercial banking, with a notable increase in market share for loans and deposits.
- IFS's cost of risk decreased by 70 basis points quarter-over-quarter, indicating better risk management and a downward trend in risk indicators.
- Digital transformation efforts are paying off, with over 80% of retail banking customers now using digital channels and a high Net Promoter Score (NPS) of 61%.
- Interseguro, the insurance arm, saw a 25% year-over-year growth in premiums, maintaining market leadership in annuities and showing strong performance in individual life insurance.
- Despite improvements, IFS's net income is still below the levels of a year ago, indicating that the company has not fully recovered to its previous performance.
- The wealth management business remains volatile, with investment portfolio performance not meeting expectations, leading to lower-than-expected returns.
- Consumer loans showed a decrease of 2.1% year-to-date and 7% year-over-year, reflecting ongoing challenges in this segment.
- The cost of funds, although improving, remains a concern, with a need for continued proactive management to maintain efficiency.
- The company's exposure to higher-risk segments, particularly in consumer lending, has led to a higher cost of risk, which, although decreasing, is still a significant factor.
Good morning, and welcome to the Intercorp Financial Services second quarter 2024 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 will open the floor for questions. (Operator Instructions) It is now my pleasure to turn the call over to Mr. Ivan Peill from InspIR Group. Sir, you may begin.
Thank you, operator, and good morning, everyone. On today's call, Intercorp Financial Services will discuss its second quarter 2024 earnings. We are very pleased to have with us. Mr. Felipe -- sorry, 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 SAB. They will be discussing the results that were distributed by the company yesterday. There
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