Intercorp Financial Services Inc. Common Shares

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. 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 questions online at any time today using the window on the webcast. and they will be answered after the presentation during the question and answer session. Simply type your question in the box and click Submit Question. It is now my pleasure to turn the call over to Mr. Ivan Peel from Inspire 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. Miquela Casasa, Chief Financial Officer, Intercorp Financial Services. Mr. Carlos Torre, Chief Executive Officer, Interbank. Mr. Gonzalo Basadre, Chief Executive Officer, Interseguro. Mr. Bruno Ferrecho, Chief Executive Officer, Intelligo. They will be discussing the results that were distributed by the company yesterday. 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. Otherwise, if you need any assistance today, please call Inspire Group in New York at 646-940-8843. 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, 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.

Thank you. Good morning all and welcome to our second quarter 2024 earnings call. I want to thank everybody for attending our call today. I would like to start by addressing the macro situation in our country. In the first half of 2024, economic growth showed better numbers, posting a 5.3% growth in April and 5% in May, mainly due to a recovery in the fishing industry with associated services. Also, there's a rebound effect over the first half of 2023. In terms of inflation, it has decreased consistently, as in April posted a 2.5% number, being the lowest among other countries in the region on that month. And in May, the inflation was 2%, continuing its downward trend. Better market sentiment from consumers and businesses lead us to expect that GDP will be at around 3% plus for this year, which is a recovery compared to last year. Under this scenario, IFS is showing improvement in its results. Our core banking franchise continues to advance with a strong growth in commercial banking and improvement in risk indicators. Although we still face volatility in our investment operations, overall, we continue in our recovery path. At Interbank, we have been able to grow our market shares in loans and deposits, growing significantly in commercial banking, now consolidating as the third largest bank in mid-sized companies and in total deposits. Even though cost of risk remains high, there is clear improvement. showing a downward trend, as we expected. Finally, Interbank and EasyPay continue working to create synergies while Plin continues to engage more users. At Interseguro, we have seen relevant growth in premiums, mainly in private annuities and individual life, maintaining market leadership in annuities. Our wealth management business has had positive quarter in its core business, as the assets under management have reached an all-time high. As you all know, our strategic priority continues to be to achieve digital excellence for our customers. We want to become the leading digital platform with profitable growth. We want to create the best digital experience for our customers. and to boost our core businesses by enhancing signatures among our companies in our platform and continuously develop our analytical capabilities, always leveraging on the best talent. To this end, we have invested in building a leading digital proposition, adaptable and scalable, that is being rapidly adapted by potential and current customers, and we're offering 100% digital products and services to almost all segments. We remain confident about IFS Outlook going forward as we monitor the macro conditions while we continue to build on our long-term strategy with emphasis on our key strategic priorities, which, as you know, are growth, digital excellence, and focus on key businesses. Finally, we wanted to share with you the award granted to Interbank from Euromoney as we have been named Peru's best bank, best digital bank, and best bank for corporate responsibility. This type of recognitions make us proud, but also tells us that we continue in the right path. Now, let me pass it on to Miquela for further explanation of our quarterly results. Thank you.