Intercorp Financial Services Inc. Common Shares

Good morning and welcome to the Intercorp Financial Services third 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 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 question. It is now my pleasure to turn the call over to Mr. Ivan Peel from Inspire Group. Sir, you may begin.

Thank you and good morning, everyone. On today's call, Intercorp Financial Services will discuss its third quarter 2024 earnings. We are very pleased to have with us Mr. 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 Besadre, 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 did not 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.

Luis Felipe Castellanos Thank you. Good morning all and welcome to our third quarter 2024 earnings call. I want to thank you for attending our call today. I would like to start by addressing the macro situation in our country. In the first eight months of 2024, economic growth performed positively, with 3.5% growth in August, accumulating a 2.9% year-to-date GDP growth, mainly due to the recovery in consumption. Slightly improved market sentiment from consumers and businesses lead us to expect GDP growth of about 3% for this year, making Peru the country with the highest growth in the region. This week, the Asia-Pacific Economic Cooperation, APEC, CEO Conference is taking place in Lima, highlighting the relevance of Peru within this important forum. It is a great chance to showcase Peru and its investment opportunities. Looking ahead to 2025, we are cautiously optimistic about the future growth of Peru, as we expect private investments in infrastructure and mining activity to reactivate. Business activity will continue to generate employment with a positive impact in the economy. This quarter's results for IFS confirm that we are emerging from the most challenging phase of the credit cycle. On top of the liquidity events of the previous quarter, like the fourth release of pension funds and the availability of severance indemnity deposits, which accelerated the recovery, our results were supported by effective risk management, diversification of our income, and the ability to make quick decisions with flexibility and efficiency. This is why we believe that, in line with the improved expectations of Peru, the positive trend should continue. As mentioned, IFS has demonstrated resilience during this credit cycle. At Indrodank, we have been able to grow our market share in loans and deposits, growing in commercial banking, and now starting to grow again in the consumer portfolio. The cost of risk is converging to normalized levels, as we see an improvement in our customers' ability to pay, paired with enhanced internal models and improved underwriting standards that should allow us to continue growing profitably. Finally, Interbank and EasyPay continue to capture business opportunities together, while Plin continues to engage users, generating more primacy from our customers. At Interseguro, we have seen relevant growth in premiums, mainly in private annuities and individual life. We continue to be the market leader in annuities. Our wealth management business had a positive quarter in its core business as assets under management reached another all-time high and the investment portfolio had a good quarter. I wanted to take the opportunity to address two independent events that occurred concurrently at the end of last month as we communicated to our clients through our official channels. First, an operational issue in Interbank which led to service interruptions between October 30 and 31st. Normal service was restored within hours of such event. Second, and unrelated to the first, an event whereby a third unauthorized party illegally accessed and exposed certain data from a group of clients. Upon verification, we confirmed that no data that allows transactions was exposed. We immediately reinforced security measures, including special monitoring of operations and client information, ensuring that both deposits and financial products are protected and customers could continue to operate normally and safe. As you know, our key strategic priority continues to be achieving digital excellence for our customers. We are focused on becoming the leading digital platform with profitable growth to create the best digital experience for our customers through development of our analytical capabilities and always leveraging on the best talent. Finally, I wanted to share some good news about sustainability. Our CSA score has seen a substantial improvement, reaching a score of 69 from 61. This is a reflection of our commitment to build a sustainable business. Going forward, we continue to be optimistic about IFS's outlook as we execute our long-term strategy. Now, let me pass it on to Miquela for further explanation of our quarter's results. Thank you.