Intercorp Financial Services revenue exceeds forecasts, earnings in line

Intercorp Financial Services SA reported first-quarter earnings that matched analyst estimates, while revenue exceeded forecasts as loan expansion and fee-based income offset margin pressures.

Net profit for the quarter ended March 31 totaled 1.23 billion soles ($312 million), in line with the median estimate of 24 analysts polled by Bloomberg. Total revenue rose 8.7% year-over-year to 3.46 billion soles, surpassing the 3.32 billion soles consensus forecast.

Loan book growth of 7.2% underpinned the revenue increase, with commercial lending up 9.1% and retail loans advancing 5.4%. Fee income, which includes transaction and advisory services, climbed 11% to 890 million soles, compensating for a 15-basis-point compression in net interest margin to 5.2%. Operating expenses rose 6.3% due to higher staffing and technology investments, keeping the cost-to-income ratio stable at 42%.

The bank’s provisioning for credit losses increased 12% from a year earlier to 380 million soles, reflecting a slight uptick in non-performing loans to 2.1% from 1.9%. Analysts noted the deterioration was marginal and within expected ranges for the current credit cycle.

Management reaffirmed guidance for full-year net profit growth of 8-10% and a dividend payout ratio of 40-45% of earnings, signaling confidence in sustained loan demand and stable asset quality. Shares were little changed in Lima trading, reflecting the in-line earnings performance despite the revenue beat.

Intercorp Financial Services, Peru’s largest financial group by assets, operates through its flagship Banco Internacional del Perú and other subsidiaries, including insurance and investment arms.