Intercorp Financial Services Inc. Common Shares

Good morning and welcome to Intercorp Financial Services second quarter 2021 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. 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 Q&A session. Simply type your question in the box and click Submit a Question. It is now my pleasure to turn the call over to Rafael Borja of Inspire Group. Sir, you may begin.

Thank you, and good morning, everyone. On today's call, Intercor Financial Services will discuss its second quarter 2021 earnings. We are very pleased to have with us Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercorp Financial Services, Mrs. Miquela Casasa, Chief Financial Officer of Intercorp Financial Services, Mr. Gonzalo Basadre, Chief Executive Officer of Interseguro, and Mr. Bruno Ferrecho, Chief Executive Officer of Inteligo. They will be discussing the results that were distributed by the company yesterday, August 11th. There is also a webcast video presentation to accompany the discussion during this call. If you didn't receive a copy of the presentation or the earnings report, they are now available on the company's website, ifs.com.pe, to download a copy. Otherwise, for any reason, if you need any assistance today, please call Inspire Group in New York at 212-710-9686. I would like to remind you that today's call is for investors and analysts only. 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 future performance, or financial results. As such, the 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.

Quarter 2021 earnings call. Thanks, everyone, for making the time to attend our call. I hope you and your families remain safe and healthy. Let me start by giving you a brief overview of the health and macro situation in Peru. On the sanitary front, Peru was able to speed up its vaccination process, and as a result, currently around 27% of the population, or 8.9 million individuals, have had the first dose, while 19% have also received the second dose or a single shot vaccine. Focalized lockdown measures have softened across the country, and numbers indicate we are ending the second wave. We know that we must get ready for a third wave, and the new government is planning accordingly. The improved sanitary conditions continue to have a positive impact on the economic recovery of the country. Despite the volatility witnessed during the electoral cycle, economic activity in the country has continued to show a robust rebound. Accumulated GDP growth levels as of the month of May point towards a 20% increase as a result of important base effects, strong public investment, and tailwinds from higher commodity prices and an improved trade balance. For the rest of the year, growth will probably trim down towards low double digits as the base effects dissipate over the next couple of quarters. As we all know, On July 28th, the new government took office. Political challenges remain high in the country as the government takes its first steps. The business community and the population in general assess the nominations in different positions, including the cabinet, and the first measures are announced. The consumer and business confidence indicators continue at low levels, signaling that economic activity will likely slow down in the coming months. In the meantime, we have seen volatility in the exchange rate and the weakening of the local currency, which has had effects on inflation. Under this scenario, IFS's franchise continues to prove strength and resilience. We remain confident that our team has experience and skills to manage through trying times, as we have done successfully in the past. Again, our clear strategic focus has taken IFS to reach another solid quarter with strong results in all operating segments and increased in our strategic businesses. In each of our subsidiaries, we have top results within the Peruvian financial system. Our liquidity, capitalization, and provisioning levels, together with our risk management skills, our strong focus on efficiency, our digital strategy, and our presence in the mind of our customers, give us confidence that our platform is well positioned to continue helping Peruvians with their financial needs in the future. The opportunity continues to be there as financial services and their penetration in the country remains high. We have the platform to make our work good. I will pass it on to Miquela to update you on the strong results of this quarter with a detailed review of our operations. Thank you and please remain safe.