Intercorp Financial Services Inc. Common Shares

for dependent employees. So I guess it's going to be a decrease in what we are expecting in our estimates is just a stabilization and not yet a growth up until year end.

Just to complement that, Alonso, or just summarize, we have been issuing more cards in the last couple of months. So we're growing our portfolio. And the usage has been good. So activation is up and clients are taking the value proposition. But as Miquela mentioned, there has been low use of financing on those cards. One part of that has to do with the segments that we're going at, which also Luis Felipe mentioned, we're going a little bit lower risk. But also there's been a lot of liquidity in the consumer segment over the last couple of months. First, due to CTS, you know, the CTS. The other is the funds from the AFPs, which have been, we're in the middle of that, or probably around 60% of the disversions have been done. Ratificaciones in July is always a very, liquid man, and that will continue for a couple of weeks. So it will be interesting to see what happens after that. We feel comfortable with the risk decisions that we have made, but we would expect a little bit more financing on those new cards over the next couple of months. Great. Thank you, Miguel and Carlos.

The next question will come from Andre Soto with Santander. Please go ahead.

Good morning to all and thank you for the presentation. My question is regarding the long-term strategy and how do you see your long book over the medium term? Historically, you know, Interbank was have an outside exposure to consumer lending after what we have seen in this great cycle Has anything changed in that sense regarding your appetite for continue having this type of exposure and also considering that you have other initiatives targeting SMEs? Can we expect IFS after this have a different composition or you think that all those factors are rather And once the economy recovers, we should see a reshuffling or your long book towards the more closer to historical levels.

Yeah. Hi, Andres. Thanks very much for your question. We've actually always mentioned that we like a balanced approach to our portfolio, like a 50% commercial, 50% commercial. Obviously, some opportunities came in the last year that de-balanced that a little bit more on consumer, but the view doesn't change. We want to go on a balanced portfolio strategy. I think that's what has done IFS successful in the past, and that probably will be in the future. Obviously, certain conditions of the country are changing. Probably certain segments will be growing more than others. And that's something that we need to review. But as of now, it doesn't change. We are going to go over our big challenges. a new five-year plan a strategy review and strategic planning process starting actually these days and it will go for a couple more months so we're gonna debate that obviously carlos story his new role brings new ideas that will be welcome and discussed. And when we finalize that process, probably we'll be able to share. But so far, we believe Peru continues to be a country of opportunities. The balanced approach is what we have, and that's what we will entertain during the following months as we continue to deploy our strategy. I think growth in core segments, digitalization, and vast use of analytics is what we continue to strive for.

Thank you, Luis Felipe. And from that perspective, you know, you previously mentioned that when you look at the long term, we should expect IFAs to have a different composition in terms of NIM and cost of risk. Can you remind us what do you see as sustainable levels for those variables to target your 18% ROE for the consolidated entity?

Yes. I can remind you of the 18% ROE. I don't have the details on the order. I don't know, Miquela, if we have long-term numbers for that, but 18% should be your driver, Andres. Miquela, I don't know if you can compliment it.

Yeah, no, maybe the only thing, Andres, that I will add is that, I mean, cost of risk should be, I mean, closer to three, okay? Most likely it's going to be above 3%, okay, because of the portfolio mix and the things that we are thinking of growing and the different maybe risk profile, okay? But, I mean, last number we have reported is still four. No, this number should go back and closer to 3%. or slightly above 3%, also in the midterm.

Expectation on when cost of rates will normalize to this level?

Actually, you have seen already, you know, the movement from 4.7 to 4. We expect to end the year in, I mean, mid three, so close to 3.5. So we expect quarter over quarter to continue the decline.

That's very helpful.

Thank you both. Thank you, Andres.

At this time, we will take any webcast questions. I would now like to turn the call over to Mr. Ivan Peel from Inspire Group. Please go ahead, sir.

Thank you, Operator. At this time, there are no webcast questions, so I'd like to turn the floor back to Ms. Casasa for closing remarks.

Okay. Thank you very much, everybody, for joining our call, and we will see each other again in August for our third quarter results. Thank you. Bye-bye.

This concludes today's conference call. This concludes today's conference call. You may now disconnect.