EX-99.1 2 ifs-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img193345711_0.jpg 

 

Intercorp Financial Services Inc.

First Quarter 2024 Earnings

Lima, Peru, May 13, 2024. Intercorp Financial Services Inc. (Lima Stock Exchange/NYSE: IFS) announced today its unaudited results for the first quarter 2024. These results are reported on a consolidated basis under IFRS in nominal Peruvian soles.

Intercorp Financial Services: 1Q24 earnings impacted by investment results and still high CoR

Banking results partially compensate extraordinary impacts on insurance
Revenue growth of 2% YoY and an ROE of 5.6% for the quarter
Customer base growth continues across businesses
Tight management of costs reflected in solid efficiency levels

Banking: Gradual improvement of CoR translates into better results for IBK

Growth in lower-risk products and segments, due to tightening of credit standards
Increasing market share relevance in targeted key products
CoR still high at 4.7% but recovering from previous quarter
Loan book boosted by Impulso MyPeru: S/ 965 disbursed by Interbank
Better cost of funds amid lower market rates, although loan mix puts pressure on NIM

Insurance: 1Q24 results negatively impacted by non-recurrent events

Negative non-recurring impacts in 1Q24.
Market leader in annuities with a 31.3% share in 1Q24.
For periods prior to 2023, a reconstruction of results appropriate to the first adoption of IFRS17 has been performed for comparative purposes.

Wealth Management: AUM growth and subtle recovery of investment portfolio

Sequential recovery of fee income, as continued growth in AUM: 3.6% QoQ and 10.2% YoY.
Significant QoQ decrease in other expenses driven by lower salaries and employee benefits and administrative expenses.
Slight recovery of investment portfolio and more consistent results.

Payments: Resilient business activity

Payments acquirer fees decreased 6.3% QoQ and increased 0.7% YoY.
Number of affiliated merchants and transactional volumes continue to expand.
Float to Interbank continues to increase.
Share of e-commerce transactions within Izipay grew from 15.6% to 18.6% YoY.

 

 

1


Intercorp Financial Services

SUMMARY

 

Intercorp Financial Services’ net profit was S/ 141.1 million in 1Q24, a decrease of S/ 144.7 million QoQ, or 50.8%, and S/ 124.9 million YoY, or 47.1%. IFS’s annualized ROE was 5.6% in 1Q24, below the 11.6% reported in 4Q23 and the 11.5% registered in 1Q23.

 

Intercorp Financial Services’ P&L statement)

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

 Interest and similar income

 

 

1,658.0

 

 

 

1,805.0

 

 

 

1,800.2

 

 

 

-0.3

%

 

 

8.6

%

 Interest and similar expenses

 

 

(584.6

)

 

 

(681.5

)

 

 

(667.0

)

 

 

-2.1

%

 

 

14.1

%

 Net interest and similar income

 

 

1,073.5

 

 

 

1,123.5

 

 

 

1,133.2

 

 

 

0.9

%

 

 

5.6

%

 Impairment loss on loans, net of recoveries

 

 

(367.6

)

 

 

(616.2

)

 

 

(548.9

)

 

 

-10.9

%

 

 

49.3

%

 Recovery (loss) due to impairment of financial investments

 

 

(13.2

)

 

 

0.8

 

 

 

(38.7

)

 

n.m.

 

 

n.m.

 

 Net interest and similar income after impairment loss

 

 

692.7

 

 

 

508.1

 

 

 

545.5

 

 

 

7.4

%

 

 

-21.3

%

 Fee income from financial services, net

 

 

301.3

 

 

 

287.8

 

 

 

268.3

 

 

 

-6.8

%

 

 

-11.0

%

 Other income

 

 

143.1

 

 

 

224.4

 

 

 

147.7

 

 

 

-34.2

%

 

 

3.2

%

 Insurance results

 

 

(91.3

)

 

 

(24.1

)

 

 

(83.3

)

 

n.m.

 

 

 

-8.7

%

 Other expenses

 

 

(680.1

)

 

 

(691.2

)

 

 

(690.3

)

 

 

-0.1

%

 

 

1.5

%

 Income before translation result and income tax

 

 

365.7

 

 

 

304.9

 

 

 

187.8

 

 

 

-38.4

%

 

 

-48.7

%

 Translation result

 

 

5.6

 

 

 

18.4

 

 

 

(4.9

)

 

n.m.

 

 

n.m.

 

 Income tax

 

 

(104.4

)

 

 

(37.2

)

 

 

(41.7

)

 

 

12.2

%

 

 

-60.0

%

 Profit for the period

 

 

266.9

 

 

 

286.1

 

 

 

141.1

 

 

 

-50.7

%

 

 

-47.1

%

 Attributable to IFS' shareholders

 

 

265.1

 

 

 

284.9

 

 

 

140.2

 

 

 

-50.8

%

 

 

-47.1

%

 EPS

 

 

3.87

 

 

 

2.49

 

 

 

 

 

 

 

 

 

 

 ROE

 

 

11.5

%

 

 

11.6

%

 

 

5.6

%

 

 

 

 

 

 

 ROA

 

 

1.2

%

 

 

1.3

%

 

 

0.6

%

 

 

 

 

 

 

Efficiency ratio

 

 

37.1

%

 

 

36.2

%

 

 

37.3

%

 

 

 

 

 

 

 

Quarter-on-quarter performance

 

Profits decreased S/ 144.7 million QoQ, or 50.8%, mainly due to a S/ 76.7 million decrease in other income, a S/ 59.2 million reduction in insurance results, a 39.5 million increase in impairment of financial investments, which occurred in the Insurance business, and a S/ 19.5 million contraction of fee income from financial services. These effects were partially compensated by a reduction of S/ 67.3 million in loan loss provisions and an increase in net interest and similar income of S/ 9.7 million.

 

Other income decreased S/ 76.7 million QoQ, mainly explained by a decrease of S/ 68.8 million in our Insurance business mainly as a result of non-recurring events, S/ 13.0 million in our Payments business, S/ 5.1 million in our Wealth Management business and S/ 2.8 million in our Banking business.

 

Insurance results showed a decline from S/ -24.1 million in 4Q23 to S/ -83.3 million in 1Q24, as a result of higher insurance expenses related to annuities, in turn related to an adjustment of S/ -22.6 millions in accounting assumptions.

 

Impairment loss on loans, net of recoveries, decreased S/ 67.3 million QoQ, or 10.9%, explained by lower provision requirements in both commercial and retail loan portfolios of our Banking business.

 

Other expenses decreased S/ 0.9 million QoQ, or 0.1%, mainly as a result of lower administrative expenses, partially offset by higher salaries and employee benefits and depreciation and amortization charges.

 

Net interest and similar income increased S/ 9.7 million QoQ, or 0.9%. This was explained by an increase of S/ 32.0 million in the Insurance results, related to carry interest from the proprietary portfolio if investments. However, this effect was partially offset by a decrease of S/ 22.8 million in our Banking business, which was related to a change in the composition of the loan portfolio.

 

2


Year-on-year performance

 

Profits decreased S/ 124.9 million YoY, or 47.1%, mainly due to a reduction of S/ 181.3 million in impairment loss on loans, net of recoveries, in addition to decreases of S/ 33.0 million in net fee income from financial services, and S/ 25.5 million loss in impairment of financial investments, which mainly occurred in our insurance business. These factors were partially offset by an increase of S/ 59.7 million in net interest and similar income other income, and a reduction of S/ 62.7 million in income tax.

 

Impairment loss on loans, net of recoveries increased S/ 181.3 million YoY, due to higher requirements in the retail and commercial loan portfolios of our Banking business.

 

Net fee income from financial services declined S/ 33.0 million YoY, or 11.0%, mainly attributed to lower commissions from credit card services, fees from collection services and commissions from banking services. Additionally, higher service cost in our Payments business, as a result of increased transactional volumes, and a reduction in correspondent banking fees affected by a higher use of digital wallets, also contributed with the lower net fee income.

 

Net and similar income increased S/ 59.7 million YoY, or 0.9%, attributed to a S/ 55.1 million increase in our Banking business, mostly explained by a higher interest income on loans and a lower cost of funds.

 

Insurance results showed a less negative result, as a result of higher insurance income, mostly from retail insurance, and stable insurance expenses.

 

Other expenses increased S/ 10.2 million YoY, or 1.5%, mainly due to a S/ 19.5 million increase in administrative expenses and S/ 12.9 million in depreciation and amortization charges. These effects were partially offset by lower salaries and employee benefits.

 

CONTRIBUTION BY SEGMENTS

 

The following table shows the contribution of Banking, Insurance, Wealth Management and Payments businesses to Intercorp Financial Services’ net profit. The performance of each of the four segments is discussed in detail in the following sections.

 

Intercorp Financial Services’ Profit by business

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

 Banking

 

 

250.2

 

 

 

135.3

 

 

 

140.5

 

 

 

3.8

%

 

 

-43.9

%

 Insurance

 

 

31.3

 

 

 

137.4

 

 

 

(19.8

)

 

n.m.

 

 

n.m.

 

 Wealth Management

 

 

7.8

 

 

 

24.5

 

 

 

26.0

 

 

 

6.0

%

 

n.m.

 

 Payments

 

 

12.1

 

 

 

4.1

 

 

 

7.0

 

 

 

70.2

%

 

 

-42.1

%

 Corporate and eliminations

 

 

(34.5

)

 

 

(15.3

)

 

 

(12.5

)

 

 

-18.2

%

 

 

-63.7

%

 IFS profit for the period

 

 

266.9

 

 

 

286.1

 

 

 

141.1

 

 

 

-50.7

%

 

 

-47.1

%

 

 

 

3


Interbank

SUMMARY

 

Interbank’s profits were S/ 140.5 million in 1Q24, an increase of S/ 5.2 million, or 3.8%, and a reduction of S/ 109.7 million YoY, or 43.9%.

 

The quarterly performance was mainly attributed to lower impairment loss on loans, net of recoveries, of S/ 67.4 million, followed by a decrease of S/ 12.4 million in other expense and of S/ 4.2 million in income tax. These factors were partially offset by a decrease of S/ 23.8 million in fee income, S/ 22.8 million in net interest and similar income and S/ 2.8 million in other income.

 

The annual performance in net profit was explained by S/ 181.1 million higher impairment loss on loans, net of recoveries, as well as a decreases of S/ 31.2 million in net fee income from financial services and S/ 8.7 million in other income. These effects were partially compensated by a S/ 55.1 million increase in net interest and similar income and a decrease of S/ 53.2 million in income tax.

 

Interbank’s ROE was 7.1% in 1Q24, higher than the 6.8% registered in 4Q23 and below the 13.6% reported in 1Q23.

 

Banking Segment’s P&L Statement

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

 Interest and similar income

 

 

1,384.6

 

 

 

1,556.0

 

 

 

1,510.4

 

 

 

-2.9

%

 

 

9.1

%

 Interest and similar expense

 

 

(525.5

)

 

 

(619.0

)

 

 

(596.2

)

 

 

-3.7

%

 

 

13.5

%

 Net interest and similar income

 

 

859.1

 

 

 

937.0

 

 

 

914.2

 

 

 

-2.4

%

 

 

6.4

%

 Impairment loss on loans, net of recoveries

 

 

(367.7

)

 

 

(616.2

)

 

 

(548.8

)

 

 

-10.9

%

 

 

49.3

%

 Recovery (loss) due to impairment of financial investments

 

 

0.2

 

 

 

(0.2

)

 

 

(0.0

)

 

 

-88.9

%

 

n.m.

 

 Net interest and similar income after impairment loss

 

 

491.6

 

 

 

320.6

 

 

 

365.4

 

 

 

14.0

%

 

 

-25.7

%

 Fee income from financial services, net

 

 

207.0

 

 

 

199.6

 

 

 

175.8

 

 

 

-11.9

%

 

 

-15.0

%

 Other income

 

 

127.3

 

 

 

121.4

 

 

 

118.6

 

 

 

-2.3

%

 

 

-6.9

%

 Other expenses

 

 

(486.6

)

 

 

(475.2

)

 

 

(487.6

)

 

 

2.6

%

 

 

0.2

%

 Income before translation result and income tax

 

 

339.3

 

 

 

166.3

 

 

 

172.2

 

 

 

3.5

%

 

 

-49.2

%

 Translation result

 

 

(6.6

)

 

 

(5.9

)

 

 

(2.4

)

 

 

-58.4

%

 

 

-62.9

%

 Income tax

 

 

(82.5

)

 

 

(25.1

)

 

 

(29.3

)

 

 

16.7

%

 

 

-64.5

%

 Profit for the period

 

 

250.2

 

 

 

135.3

 

 

 

140.5

 

 

 

3.8

%

 

 

-43.9

%

ROE

 

 

13.6

%

 

 

6.8

%

 

 

7.1

%

 

 

 

 

 

 

Efficiency ratio

 

 

39.1

%

 

 

36.2

%

 

 

38.7

%

 

 

 

 

 

 

NIM

 

 

5.1

%

 

 

5.5

%

 

 

5.3

%

 

 

 

 

 

 

NIM on loans

 

 

7.6

%

 

 

8.2

%

 

 

8.0

%

 

 

 

 

 

 

 

INTEREST-EARNING ASSETS

 

Interbank’s interest-earning assets reached S/ 68,572.5 million as of March 31, 2023, representing an increase of 3.8% QoQ and 4.6% YoY.

 

The quarterly increase in interest-earning assets was explained by an increase of 33.7% in cash and due from banks and inter-bank funds, partially offset by decreases of 1.2% in loans and of 0.6% in financial investments.

 

The YoY growth in interest-earning assets was attributed to increases of 12.9% in cash and due from banks and inter-bank funds, 10.9% in financial investments, and 1.1% in loans.

 

 

 

 

 

 

 

 

4


 

Interest-earning assets

 

S/ million

 

03.31.23

 

 

12.31.23

 

 

03.31.24

 

 

%chg
03.31.24/
12.31.23

 

 

%chg
03.31.24/
03.31.23

 

 Cash and due from banks and inter-bank funds

 

 

10,810.7

 

 

 

9,123.4

 

 

 

12,200.0

 

 

 

33.7

%

 

 

12.9

%

 Financial investments

 

 

10,726.1

 

 

 

11,964.2

 

 

 

11,892.0

 

 

 

-0.6

%

 

 

10.9

%

 Loans

 

 

44,017.1

 

 

 

45,004.8

 

 

 

44,480.4

 

 

 

-1.2

%

 

 

1.1

%

 Total interest-earning assets

 

 

65,553.9

 

 

 

66,092.5

 

 

 

68,572.5

 

 

 

3.8

%

 

 

4.6

%

 

Loan portfolio

 

S/ million

 

03.31.23

 

 

12.31.23

 

 

03.31.24

 

 

%chg
03.31.24/
12.31.23

 

 

%chg
03.31.24/
03.31.23

 

Performing loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

24,323.8

 

 

 

24,785.9

 

 

 

24,509.5

 

 

 

-1.1

%

 

 

0.8

%

Commercial

 

 

19,613.3

 

 

 

19,869.8

 

 

 

19,416.4

 

 

 

-2.3

%

 

 

-1.0

%

Total performing loans

 

 

43,937.1

 

 

 

44,655.8

 

 

 

43,925.9

 

 

 

-1.6

%

 

 

0.0

%

Restructured and refinanced loans

 

 

336.2

 

 

 

462.0

 

 

 

471.5

 

 

 

2.1

%

 

 

40.3

%

Past due loans

 

 

1,386.8

 

 

 

1,652.2

 

 

 

1,696.1

 

 

 

2.7

%

 

 

22.3

%

Total gross loans

 

 

45,660.1

 

 

 

46,769.9

 

 

 

46,093.5

 

 

 

-1.4

%

 

 

0.9

%

Add (less)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued and deferred interest

 

 

455.7

 

 

 

584.2

 

 

 

609.4

 

 

 

4.3

%

 

 

33.7

%

Impairment allowance for loans

 

 

(2,098.6

)

 

 

(2,349.3

)

 

 

(2,222.4

)

 

 

-5.4

%

 

 

5.9

%

Total direct loans, net

 

 

44,017.1

 

 

 

45,004.8

 

 

 

44,480.4

 

 

 

-1.2

%

 

 

1.1

%

 

The evolution of performing loans continued to be affected by the maturity and prepayment of commercial loans under the Reactiva Peru Program. As of March 31, 2023, these performing loans amounted S/ 487.7 million, compared to balances of S/ 625.8 million as of December 31, 2023 and S/ 1,452.1 million as of March 31, 2023.

 

The evolution of commercial loans continued to be benefited by the Impulso MyPeru program focused on disbursing loans to SMEs and mid-sized segments. As of March 31, 2024, Interbank has disbursed a total of S/ 385.5 million by participating in 11 auctions with a market share of 18%. It is important to mention that these loans are guaranteed by the government with coverage levels between 50% to 98%.

 

Performing loans declined 1.6% QoQ, as commercial loans decreased 2.3% and retail loans 1.1%. Excluding the effect of the Reactiva Peru Program in the comparing periods, total performing loans and commercial loans would have also decreased 1.3% and 1.6% QoQ, respectively.

 

Retail loans decreased 1.1% due to a 2.7% reduction in consumer loans, partially compensated by 1.5% increase in mortgages. Consumer loans decreased due to lower balances of cash loans and credit cards, partially offset by 2.7% growth in payroll deduction loans.

 

The quarterly reduction in commercial loans was due to a decrease in trade finance loans in the corporate and mid-sized segment, as well as lower working capital loans, leasing operations. These effects were partially compensated by higher working capital loans and leasing operations in the corporate segment.

 

Performing loans remained stable YoY explained by a 0.8% increase in retail loans, partially offset by a 1.0% reduction in commercial loans. Excluding the effect of the Reactiva Peru Program in the comparing periods, performing loans and commercial loans would have increased 2.2% and 4.2% YoY, respectively.

 

The YoY growth in retail loans was due to increases of 6.2% in mortgages, partially offset by a 2.4% decrease in consumer loans. The decrease in consumer loans resulted from lower balances in personal loans and credit cards, partially offset by an increase of 13.7% in payroll deduction loans.

 

The annual reduction in commercial loans was mainly explained by lower balances of trade finance loans, and of lower working capital loans in the corporate and SMEs segment. Other factor that contributed to the annual reduction was lower balances of the mid-sized companies in most products. These effects were partially offset by higher leasing operations in the corporate segment.

5


 

As of 1Q24, 4Q23 and 1Q23, Interbank’s rescheduled portfolio of Reactiva Peru loans amounted to S/ 587.0 million, S/ 730.5 million and S/ 1,266.0 million, respectively, representing 94.0% of total balances of Reactiva Peru loans in 1Q24, 94.8% in 4Q23 and 74.6% in 1Q23.

 

It is worth mentioning that these loans are guaranteed in large part by the Peruvian government. As of March 31, 2024, Interbank activated the guaranteed coverage for an amount of S/ 809.0 million.

 

Breakdown of retail loans

 

S/ million

 

03.31.23

 

 

12.31.23

 

 

03.31.24

 

 

%chg
03.31.24/
12.31.23

 

 

%chg
03.31.24/
03.31.23

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Credit cards & other loans

 

 

10,358.0

 

 

 

9,951.0

 

 

 

9,340.1

 

 

 

-6.1

%

 

 

-9.8

%

   Payroll deduction loans(1)

 

 

4,836.2

 

 

 

5,301.7

 

 

 

5,496.7

 

 

 

3.7

%

 

 

13.7

%

Total consumer loans

 

 

15,194.1

 

 

 

15,252.7

 

 

 

14,836.8

 

 

 

-2.7

%

 

 

-2.4

%

    Mortgages

 

 

9,129.7

 

 

 

9,533.2

 

 

 

9,672.7

 

 

 

1.5

%

 

 

5.9

%

Total retail loans

 

 

24,323.8

 

 

 

24,785.9

 

 

 

24,509.5

 

 

 

-1.1

%

 

 

0.8

%

 

(1)
Payroll deduction loans to public sector employees.

 

FUNDING STRUCTURE

Funding structure

 

S/ million

 

03.31.23

 

 

12.31.23

 

 

03.31.24

 

 

%chg
03.31.24/
12.31.23

 

 

%chg
03.31.24/
03.31.23

 

Deposits and obligations

 

 

46,247.0

 

 

 

46,053.6

 

 

 

48,090.4

 

 

 

4.4

%

 

 

4.0

%

Due to banks and correspondents and inter-bank funds

 

 

7,848.6

 

 

 

8,789.0

 

 

 

9,120.8

 

 

 

3.8

%

 

 

16.2

%

Bonds, notes and other obligations

 

 

4,476.4

 

 

 

4,253.2

 

 

 

4,249.1

 

 

 

-0.1

%

 

 

-5.1

%

Total

 

 

58,571.9

 

 

 

59,095.8

 

 

 

61,460.3

 

 

 

4.0

%

 

 

4.9

%

% of funding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and obligations

 

 

79.0

%

 

 

77.9

%

 

 

78.2

%

 

 

 

 

 

 

Due to banks and correspondents and inter-bank funds

 

 

13.4

%

 

 

14.9

%

 

 

14.8

%

 

 

 

 

 

 

Bonds, notes and other obligations

 

 

7.6

%

 

 

7.2

%

 

 

7.0

%

 

 

 

 

 

 

 

Interbank's funding base was still influenced by the funds provided by the Central Bank, associated with the bank’s involvement in the Reactiva Peru Program. As of March 31, 2024, the balance of such special funding was S/ 413.8 million, compared to S/ 540.2 million as of December 31, 2023 and S/ 1,356.7 million as of March 31, 2023.

 

The bank’s total funding base increased 4.0% QoQ, compared to the 3.8% increase of interest-earnings assets. This was explained by increases of 4.4% in deposits and obligations, 3.8% in due to banks and correspondents and inter-bank funds, partially offset by a 0.1% decrease in bonds, notes and other obligations.

 

The quarterly increase in due to banks and correspondents and inter-bank funds was mainly the result of higher funding provided by COFIDE and interbank funds. These effects were partially compensated by lower funding provided by the Central Bank, as well as funding provided by correspondent banks.

 

The quarterly growth in deposits and obligations was mainly due to increases of 0.7% in commercial deposits and 36.2% in institutional deposits, which is mainly composed of time deposits, partially offset by a 0.8% reduction in retail deposits.

 

The bank’s total funding base grew 4.9% YoY, similar to the 4.6% increase of interest-earning assets. This is explained by increases of 16.2% in due to banks and correspondents and inter-bank funds, 4.0% in deposits and obligations, partially offset by a 5.1% decrease in bonds, notes and other obligations. Excluding the effect of the Reactiva Peru Program’s funds, the bank’s total funding base and due to banks and correspondents and inter-bank funds would have increased 6.7% and 34.1% YoY, respectively.

The YoY increase in due to banks and correspondents and inter-bank funds was mainly the result of higher funding provided by correspondent banks, funding provided by COFIDE, and inter-bank funds. These factors were partially compensated by lower funding provided by the Central Bank.

6


 

The annual increase in deposits was mainly attributed to increases of 3.9% in retail deposits, 10.3% in commercial deposits, partially offset by a 5.4% reduction in institutional deposits.

 

As of March 31, 2024, the proportion of deposits and obligations to total funding was 78.2%, higher than the 77.9% reported as of December 31, 2023.

 

Breakdown of deposits

 

S/ million

 

03.31.23

 

 

12.31.23

 

 

03.31.24

 

 

%chg
03.31.24/
12.31.23

 

 

%chg
03.31.24/
03.31.23

 

By customer service:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 

23,548.3

 

 

 

24,683.7

 

 

 

24,474.8

 

 

 

-0.8

%

 

 

3.9

%

Commercial

 

 

13,722.3

 

 

 

15,002.6

 

 

 

15,115.9

 

 

 

0.8

%

 

 

10.2

%

Institutional

 

 

8,418.2

 

 

 

5,844.8

 

 

 

7,961.4

 

 

 

36.2

%

 

 

-5.4

%

Other

 

 

558.2

 

 

 

522.5

 

 

 

538.2

 

 

 

3.0

%

 

 

-3.6

%

Total

 

 

46,247.0

 

 

 

46,053.6

 

 

 

48,090.4

 

 

 

4.4

%

 

 

4.0

%

By type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

 

11,217.1

 

 

 

12,474.3

 

 

 

12,424.2

 

 

 

-0.4

%

 

 

10.8

%

Savings

 

 

19,451.5

 

 

 

17,756.3

 

 

 

17,883.5

 

 

 

0.7

%

 

 

-8.1

%

Time

 

 

15,563.3

 

 

 

15,816.4

 

 

 

17,767.0

 

 

 

12.3

%

 

 

14.2

%

Other

 

 

15.1

 

 

 

6.6

 

 

 

15.6

 

 

n.m.

 

 

 

3.3

%

Total

 

 

46,247.0

 

 

 

46,053.6

 

 

 

48,090.4

 

 

 

4.4

%

 

 

4.0

%

 

NET INTEREST AND SIMILAR INCOME

Net interest and similar income

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

1,384.6

 

 

 

1,556.0

 

 

 

1,510.4

 

 

 

(2.9

)%

 

 

9.1

%

Interest and similar expense

 

 

(525.5

)

 

 

(619.0

)

 

 

(596.2

)

 

 

(3.7

)%

 

 

13.5

%

Net interest and similar income

 

 

859.1

 

 

 

937.0

 

 

 

914.2

 

 

 

(2.4

)%

 

 

6.4

%

NIM

 

 

5.1

%

 

 

5.5

%

 

 

5.3

%

 

 

-20

 bps

 

 

20

 bps

 

Interest and similar income

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from banks and inter-bank funds

 

 

82.8

 

 

 

74.2

 

 

 

88.1

 

 

 

18.7

%

 

 

6.4

%

Financial investments

 

 

122.1

 

 

 

143.1

 

 

 

147.3

 

 

 

2.9

%

 

 

20.7

%

Loans

 

 

1,179.7

 

 

 

1,338.7

 

 

 

1,275.0

 

 

 

(4.8

)%

 

 

8.1

%

Total Interest and similar income

 

 

1,384.6

 

 

 

1,556.0

 

 

 

1,510.4

 

 

 

(2.9

)%

 

 

9.1

%

Average interest-earning assets

 

 

67,170.1

 

 

 

68,656.7

 

 

 

69,618.3

 

 

 

1.4

%

 

 

3.6

%

Average yield on assets (annualized)

 

 

8.2

%

 

 

9.1

%

 

 

8.7

%

 

 

-40

 bps

 

 

50

 bps

 

 

 

7


 

Interest and similar expense

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and obligations

 

 

(377.6

)

 

 

(431.4

)

 

 

(402.9

)

 

 

(6.6

)%

 

 

6.7

%

Due to banks and correspondents and inter-bank funds

 

 

(83.8

)

 

 

(126.8

)

 

 

(124.8

)

 

 

(1.6

)%

 

 

48.9

%

Bonds, notes and other obligations

 

 

(64.0

)

 

 

(60.8

)

 

 

(68.4

)

 

 

12.5

%

 

 

6.9

%

Total Interest and similar expense

 

 

(525.5

)

 

 

(619.0

)

 

 

(596.2

)

 

 

(3.7

)%

 

 

13.5

%

Average interest-bearing liabilities

 

 

58,249.0

 

 

 

59,389.8

 

 

 

60,278.0

 

 

 

1.5

%

 

 

3.5

%

Average cost of funding (annualized)

 

 

3.6

%

 

 

4.2

%

 

 

4.0

%

 

 

-20

 bps

 

 

40

 bps

 

QoQ Performance

 

Net interest and similar income decreased 2.4% QoQ due to a 2.9% reduction in interest and similar income, partially compensated by a 3.7% decrease in interest and similar expense.

 

The lower interest and similar income were attributed to a 4.8% decrease in interest on loans, partially offset by increases of 18.7% in interest of due from banks and inter-bank funds and 2.9% in interest on financial investments.

 

Interest on loans declined S/ 63.7 million QoQ, or 4.8% explained by a 50 basis point decrease in the average yield, as well as a 1.1% reduction in the average loan portfolio.

 

The lower average rate on loans, from 11.3% in 4Q23 to 10.8% in 1Q24, was the result of a 80 basis point decrease in retail loans, as loan mix shifts towards low-risk products, and a stable performance in commercial loans.

The lower average volume of loans was attributed to reduction of 1.4% in commercial loans and 0.9% in retail loans. In the commercial portfolio, average loans decreased 10.1% in trade finance loans and 1.5% in working capital, partially compensated by an increase of 1.3% in leasing operations. In the retail portfolio, average volumes decreased 2.3% in consumer loans, but increased 1.5% in mortgages.

 

Interest on due from banks and inter-bank funds increased S/ 13.9 million QoQ, or 18.7%, explained by a 14.0% growth in the average volume and a 10 basis point increase in the nominal average rate, from 3.2% in 4Q23 to 3.3% in 1Q24.

 

Interest on financial investments grew S/ 4.2 million QoQ, or 2.9%, due to an increase of 1.6% in the average volume and a stable performance in the average yield of 4.9% in 4Q23 and 1Q24.

 

The nominal average yield on interest-earning assets decreased 40 basis points QoQ, from 9.1% in 4Q23 to 8.7% in 1Q24, in line with lower returns on loans.

 

The lower interest and similar expense were due to decreases of 6.6% in interest on deposits and obligations, 1.6% in interest on due to banks and correspondents and inter-bank funds, partially offset by an increase in interest on due to bonds, notes and other obligations.

 

The quarterly reduction of S/ 28.5 million, or 6.6% in interest on deposits and obligations was due to a decrease in the average cost, from 3.8% in 4Q23 to 3.4% in 1Q24, as short duration deposits start to reprice. This was partially offset by a 2.7% increase in the average volume. By currency, average balances of soles-denominated deposits increased 2.4%.

 

Interest on due to banks and correspondents decreased S/ 2.0 million QoQ, or 1.6%, explained by a 2.2% reduction in the average volume, partially offset by a 10 basis point growth in the average cost, from 5.5% in 4Q23 to 5.6% in 1Q24.

 

The increase in interest on bonds, notes and other obligations of S/ 7.6 million QoQ, or 12.5% was mostly attributed to an 80 basis point increase in the average cost, from 5.6% in 4Q23 to 6.4% in 1Q24, partially offset by a 3.0% decrease in the average volume. Both impacts were associated to the issuance of US$ 300 million subordinated bond in January 2024, the tender offer of the subordinated bond BINTPE29 for US$ 195 million in January 2024 and the execution of the optional redemption for the remaining US$ 105 million in March 2024.

The average cost of funding decreased 20 basis points, from 4.2% in 4Q23 to 4.0% in 1Q24, as a consequence of a lower cost of deposits and obligations, partially offset by a higher cost of banks and correspondents.

8


 

As a result of the above, net interest margin was 5.3% in 1Q24, 20 basis points lower than the 5.5% reported in 4Q23.

 

YoY Performance

 

Net interest and similar income grew 6.6% YoY due to a 9.1% increase in interest and similar income, partially offset by growth of 13.5% in interest and similar expense.

 

The higher interest and similar income was due to increases of 20.7% in interest on financial investments, 8.1% in interest on loans and 6.4% in interest on due from banks and inter-bank funds.

 

Interest on financial investments increased S/ 25.2 million YoY, or 20.7%, due to growth of 17.4% in the average volume which was mainly driven by higher balances in sovereign bonds, as well as a 10 basis point increase in the average yield, from 4.8% in 1Q23 to 4.9% in 1Q24.

 

Interest on loans increased S/ 95.3 million YoY, or 8.1%, explained by growth of 50 basis points in the average yield and 2.4% in the average volume.

 

The increase in the average rate on loans, from 10.3% in 1Q23 to 10.8% in 1Q24, was mainly due to higher yields on commercial, mortgage and consumer loans to a lesser extent.

 

The higher average volume of loans was attributed to growth of 5.3% in retail loans, partially offset by a 1.3% reduction in commercial loans. In the retail portfolio, average volumes grew due to increases of 4.8% in consumer loans (mainly explained by a 13.6% growth in payroll deductible loans) and 6.1% in mortgages. In the commercial portfolio, the lower average volume was mainly attributed to decreasing volumes in trade finance loans and working capital loans, partially offset by higher leasing operations.

 

Interest on due from banks and inter-bank funds grew S/ 5.3 million YoY, or 6.4%,

explained by growth of 30 basis points in the average yield, from 3.0% in 1Q23 to 3.3% in 1Q24, despite a 3.8% reduction in the average volume.

 

The nominal average yield on interest-earning assets increased 50 basis points, from 8.2% in 1Q23 to 8.7% in 1Q24, in line with the higher returns on loans and due from banks.

 

The higher interest and similar expense was due to increases of 48.9% in interest on due to banks and correspondents and inter-bank funds, 6.9% in interest on bonds, notes and other obligations, and 6.7% in interest on deposits and obligations.

 

Interest on due to banks and correspondents grew S/ 41.0 million YoY, or 48.9%, as a result of increases of 22.6% in the average volume and 100 basis point in the average cost, from 4.6% in 1Q23 to 5.6% in 1Q24.

 

Interest on bonds, notes and other obligations grew S/ 4.4 YoY, or 6.9% was mainly explained by a 180 increase in the average cost, partially offset by a 23% decrease in the average volume. Both impacts were associated to the issuance of US$ 300 million subordinated bond in January 2024, the tender offer of the subordinated bond BINTPE29 for US$ 195 million in January 2024 and the execution of the optional redemption for the remaining US$ 105 million in March 2024.

 

Interest on deposits and obligations increased S/ 25.3 million YoY, or 6.7%, explained by a 3.6% increase in the average volume. By currency, average balances of soles-denominated deposits grew 5.4% while average dollar-denominated deposits remained stable. In addition, average cost increased 10 basis point, from 3.3% in 1Q23 to 3.4% in 1Q24. Both effects were related to higher time deposits given the interest rate environment.

 

The average cost of funding increased 40 basis points, from 3.6% in 1Q23 to 4.0% in 1Q24.

 

As a result of the above, net interest margin was 5.3% in 1Q24, 20 basis points higher than the 5.1% reported in 1Q23.

 

IMPAIRMENT LOSS ON LOANS, NET OF RECOVERIES

 

Impairment loss on loans, net of recoveries, decreased 10.9% QoQ, while it grew by 49.3% YoY.

 

The quarterly performance was explained by lower provision requirements in the commercial and retail loan book. In the commercial portfolio, the decrease in provisions was driven by lower requirements across all segments, especially in the SME segment. In the retail

9


portfolio, the decrease in provisions was primarily driven by tightened standards, which resulted in higher requirements for consumer loans and credit cards.

 

The annual increase in provisions was explained by higher requirements in the retail loan book, as mentioned previously, partially offset by lower requirements in the commercial loan book. Higher requirements in the retail loan book were mostly related to credit cards and consumer loans. The decrease in commercial loan provisions was due to lower requirements in the corporate and mid-sized segments, partially offset by higher requirements in the SME segment.

 

As a result of the above, the annualized ratio of impairment loss on loans to average loans was 4.7% in 1Q24, lower than the 5.2% reported in the 4Q23, but higher than the 3.2% reported in the 1Q23.

 

Impairment loss on loans, net of recoveries

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Impairment loss on loans, net of recoveries

 

 

(367.7

)

 

 

(616.2

)

 

 

(548.8

)

 

 

(10.9

)%

 

 

49.3

%

Impairment loss on loans/average gross loans

 

 

3.2

%

 

 

5.2

%

 

 

4.7

%

 

 

-50

 bps

 

 

150

 bps

S3 NPL ratio (at end of period)

 

 

2.6

%

 

 

3.2

%

 

 

3.4

%

 

 

20

 bps

 

 

80

 bps

S3 NPL coverage ratio (at end of period)

 

 

177.9

%

 

 

156.8

%

 

 

141.0

%

 

 

-1580

 bps

 

 

-3690

 bps

Impairment allowance for loans

 

 

2,098.6

 

 

 

2,349.3

 

 

 

2,222.4

 

 

 

(5.4

)%

 

 

5.9

%

 

The Stage 3 NPL ratio increased 20 basis points QoQ and 80 basis points YoY, to 3.4% in 1Q24. The quarterly growth was due to a 20 basis point increase in the retail loans’ NPL, while the NPL for commercial loans increased 19 basis points. The higher Stage 3 NPL ratio YoY was explained by a 152 basis point increase in retail loans’ NPL, as well as a stable performance in the commercial loans’ NPL.

 

Furthermore, the S3 NPL coverage ratio was 141.0% as of March 31, 2023, lower than the 156.8% reported as of December 31, 2023, and the 177.9% registered as of March 31, 2023.

 

FEE INCOME FROM FINANCIAL SERVICES, NET

 

Net fee income from financial services decreased S/ 23.8 million QoQ, or 11.9%, mainly explained by lower commissions from credit card services and from banking services, as well as a reduction in maintenance and mailing of accounts, transfer fees and commissions on debit card services. Other factors that contributed to the result were less transactionality and an increase in total expenses.

 

Net fee income from financial services decreased S/ 31.2 million YoY, or 15.0%, mainly due to lower commissions from credit card services, fees from collection services and higher expenses. These effects were partially compensated by higher fees from maintenance and mailing of accounts.

 

Fee income from financial services, net

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions from credit card services

 

 

116.5

 

 

 

112.8

 

 

 

102.5

 

 

 

-9.1

%

 

 

-12.0

%

Commissions from banking services

 

 

76.2

 

 

 

80.3

 

 

 

75.5

 

 

 

-6.0

%

 

 

-0.9

%

Maintenance and mailing of accounts, transfer fees and commissions on debit card services

 

 

69.3

 

 

 

78.8

 

 

 

75.2

 

 

 

-4.6

%

 

 

8.5

%

Fees from indirect loans

 

 

17.4

 

 

 

17.8

 

 

 

17.4

 

 

 

-2.3

%

 

 

0.1

%

Collection services

 

 

16.8

 

 

 

13.8

 

 

 

13.4

 

 

 

-3.1

%

 

 

-20.2

%

Other

 

 

11.9

 

 

 

7.0

 

 

 

10.0

 

 

 

41.7

%

 

 

-15.9

%

Total income

 

 

308.0

 

 

 

310.6

 

 

 

294.0

 

 

 

-5.4

%

 

 

-4.6

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance

 

 

(16.5

)

 

 

(16.8

)

 

 

(18.7

)

 

 

11.4

%

 

 

13.0

%

Fees paid to foreign banks

 

 

(6.2

)

 

 

(6.8

)

 

 

(5.7

)

 

 

-16.5

%

 

 

-8.6

%

Other

 

 

(78.3

)

 

 

(87.5

)

 

 

(93.8

)

 

 

7.2

%

 

 

19.7

%

Total expenses

 

 

(101.0

)

 

 

(111.0

)

 

 

(118.1

)

 

 

6.4

%

 

 

16.9

%

Fee income from financial services, net

 

 

207.0

 

 

 

199.6

 

 

 

175.8

 

 

 

-11.9

%

 

 

-15.0

%

 

10


 

OTHER INCOME

 

Other income decreased S/ 2.8 million QoQ, mainly explained by lower net gain on foreign exchange transactions and on financial assets at fair value through profit or loss, partially compensated by higher net gain on sale of financial investments.

 

Other income decreased S/ 8.7 million YoY mainly explained by lower contribution of extraordinary concepts, partially offset by a higher net gain on foreign exchange transactions and on financial assets at fair value through profit or loss and a higher net gain on sale of financial investments.

 

Other income

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

 

%chg
QoQ

 

 

%chg
YoY

 

Net gain on foreign exchange transactions and on financial assets at fair value through profit or loss

 

 

90.1

 

 

 

102.5

 

 

 

97.6

 

(1)

 

 

-4.8

%

 

 

8.4

%

Net gain on sale of financial investments

 

 

0.1

 

 

 

(1.8

)

 

 

5.8

 

 

 

n.m.

 

 

n.m.

 

Other

 

 

37.1

 

 

 

20.6

 

 

 

15.2

 

 

 

 

-26.4

%

 

 

-59.1

%

Total other income

 

 

127.3

 

 

 

121.4

 

 

 

118.6

 

 

 

 

-2.3

%

 

 

-6.9

%

 

(1)
Includes S/ 109.6 million of net gain on foreign exchange transactions and S/ -12.0 million of net gain (loss) on financial assets at fair value though profit or loss (derivatives).

 

OTHER EXPENSES

 

Other expenses increased S/ 12.4 million QoQ, or 2.6%, and S/ 1.0 million YoY, or 0.2%.

The quarterly increase in other expenses was mainly explained by higher salaries and employee benefits, which in turn was associated to benefits recognized in March, and depreciation and amortization charges, partially offset by a decrease in administrative expenses.

The annual increase was the result of higher administrative expenses and depreciation and amortization charges, partially offset by a decrease in salaries and employee benefits.

The efficiency ratio was 38.7% in 1Q24, higher compared to the 36.2% reported in 4Q23, but lower than the 39.1% registered in 1Q23.

 

Other expenses

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Salaries and employee benefits

 

 

(170.2

)

 

 

(138.7

)

 

 

(146.7

)

 

 

5.8

%

 

 

-13.8

%

Administrative expenses

 

 

(230.3

)

 

 

(247.2

)

 

 

(245.2

)

 

 

-0.8

%

 

 

6.5

%

Depreciation and amortization

 

 

(66.2

)

 

 

(69.5

)

 

 

(75.4

)

 

 

8.4

%

 

 

13.9

%

Other

 

 

(19.9

)

 

 

(19.9

)

 

 

(20.3

)

 

 

2.1

%

 

 

2.1

%

Total other expenses

 

 

(486.6

)

 

 

(475.2

)

 

 

(487.6

)

 

 

2.6

%

 

 

0.2

%

Efficiency ratio

 

 

39.1

%

 

 

36.2

%

 

 

38.7

%

 

 

250

 bps

 

 

-40

 bps

 

REGULATORY CAPITAL

 

The ratio of regulatory capital to risk weighted assets (RWA) was 15.1% as of March 31, 2024, below the 15.5% reported as of December 31, 2023 and the 15.2% registered as of March 31, 2023.

In 1Q24, risk-weighted assets (APR) decreased 2.1% QoQ, due to lower capital requirements for credit risk and market risk, partially compensated by higher requirements for operational risk. Lower RWA for credit risk were attributed to lower RWA for loans, as well as lower RWA for financial investments, effects that were partially compensated by higher RWA for other assets.

11


Total regulatory capital decreased 4.2% QoQ, mainly attributed to lower profits for the year as a consequence of the dividend declaration. In March 2024 there has been a change in regulation, which establishes that the investments in companies that belong to the financial consolidated group of Interbank should be deducted from the total regulatory capital. Interbank has adjusted its total regulatory capital in accordance with its position in Izipay.

The annual decrease in the total capital ratio was explained by an increase of 2.1% in RWA, which was mitigated by a 1.8% increase in the regulatory capital. The growth in RWA was due to higher capital requirements for credit risk, operational risk and market risk. The increase in RWA for credit risk was due to higher RWA for loans, partially compensated by lower RWA for financial investments and other assets.

The YoY performance in regulatory capital was mainly a result of the incorporation of the capitalization of 2023 results, as well as for the unrealized loss (UL) in the investment portfolio available for sale. These effects were partially compensated by higher adjustments in investments on subsidiaries that are part of the financial consolidated group to which Interbank belongs, as a consequence of regulatory changes published at the end of March 2024.

Also, it is worth mentioning that in December 2022, the SBS issued the Official Document No. 03952-2022, by which it established that, from March 1, 2023, the minimum regulatory capital ratio requirement would remain at 8.5% and would follow an adequation schedule until March 2024, date in which the minimum regulatory capital ratio requirement will reach 10.0%. This date was modified with later resolutions, being the Resolution N° 274-2024, published in January 2024, the last current update, which establishes the new date for the implementation of the global limit in March 2025.

However, in June 2023, the SBS issued a modification of the resolution published in December 2022, by which it modifies the adequation schedule until September 2024, new date in which the minimum regulatory capital ratio requirement will reach 10.0%.

As of March 31, 2024, Interbank’s total capital ratio of 15.1% was significantly higher than the global requirements plus buffers and capital assigned to cover additional risks, by disposition of the SBS. The minimum regulatory requirement was 9.0% as of December 31, 2023. Additionally, Core Equity Tier 1 (CET1) was 11.3% under the new methodology required by the SBS, compared to the 11.8% registered as of December 31, 2023, and 11.1% reported as of March 31, 2023. It is important to mention that under the new SBS regulation CET1 is the main component of the Tier I capital ratio.

 

Regulatory capital

 

S/ million

 

03.31.23

 

 

12.31.23

 

 

03.31.24

 

 

%chg
03.31.24/
12.31.23

 

 

%chg
03.31.24/
03.31.23

 

Tier I capital

 

 

6,766.3

 

 

 

7,461.7

 

 

 

7,050.3

 

 

 

(5.5

)%

 

 

4.2

%

Tier II capital

 

 

2,467.3

 

 

 

2,349.8

 

 

 

2,346.0

 

 

 

(0.2

)%

 

 

(4.9

)%

Total regulatory capital

 

 

9,233.6

 

 

 

9,811.5

 

 

 

9,396.3

 

 

 

(4.2

)%

 

 

1.8

%

Risk-weighted assets (RWA)

 

 

60,890.9

 

 

 

63,494.9

 

 

 

62,168.4

 

 

 

(2.1

)%

 

 

2.1

%

Total capital ratio

 

 

15.2

%

 

 

15.5

%

 

 

15.1

%

 

 

-40

 bps

 

 

-10

 bps

Tier I capital / RWA

 

 

11.1

%

 

 

11.8

%

 

 

11.3

%

 

 

-50

 bps

 

 

20

 bps

CET1

 

 

11.1

%

 

 

11.8

%

 

 

11.3

%

 

 

-50

 bps

 

 

20

 bps

 

(1)
Under the new SBS regulation on solvency, in effect from January 1st, 2023 onwards, CET1 is part of the Total capital ratio, in line with Basel III guidelines.

 

 

12


Interseguro

SUMMARY

 

Interseguro adopted IFRS17 requirements starting on January 1st, 2023. As permitted by this regulation, for periods prior to 2023, we hereby present a reconstruction of results appropriate to the first adoption of IFRS17 for comparative purposes.

Interseguro’s profits reached S/ -19.8 million in 1Q24, a negative performance compared to 4Q23 and 1Q23.

The quarterly contraction was mainly explained by decreases of S/ 68.8 million, or 90.8%, in other income, S/ 59.2 million in insurance results, S/. 39.8 loss in impairment of financial investments due to a rating downgrade of a fixed income investment, and S/ 19.1 million in translation results. These effects were partially offset by a S/ 32.0 million increase in net interest and similar income.

The annual performance in net profit was mainly explained by decreases of S/ 25.8 million in loss due to impairment of financial investments, S/ 23.0 million in other income, S/6.9 in translation results and S/ 4.4 million in other expenses. However, these factors were partially offset by a lower loss in insurance results.

As a result, Interseguro’s ROE posted a not meaningful result for 1Q24 when compared to the 138.9% reported in 4Q23 and the 37.6% registered in 1Q23.

 

Insurance Segment’s P&L Statement

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

228.1

 

 

 

196.9

 

 

 

238.8

 

 

 

21.2

%

 

 

4.7

%

Interest and similar expenses

 

 

(30.4

)

 

 

(32.6

)

 

 

(42.3

)

 

 

29.9

%

 

 

39.4

%

Net interest and similar income

 

 

197.8

 

 

 

164.4

 

 

 

196.4

 

 

 

19.5

%

 

 

-0.7

%

Recovery (loss) due to impairment of financial investments

 

 

(13.1

)

 

 

0.9

 

 

 

(38.9

)

 

n.m.

 

 

n.m.

 

Net interest and similar income after impairment loss

 

 

184.7

 

 

 

165.3

 

 

 

157.5

 

 

 

-4.7

%

 

 

-14.7

%

Fee income from financial services, net

 

 

(5.1

)

 

 

(3.5

)

 

 

(2.5

)

 

 

-27.9

%

 

 

-50.1

%

Insurance results

 

 

30.0

 

 

 

75.8

 

 

 

7.0

 

 

 

-90.8

%

 

 

-76.8

%

Other income

 

 

(91.3

)

 

 

(24.1

)

 

 

(83.3

)

 

n.m.

 

 

 

-8.7

%

Other expenses

 

 

(92.8

)

 

 

(93.9

)

 

 

(97.2

)

 

 

3.6

%

 

 

4.7

%

Income before translation result and income tax

 

 

25.5

 

 

 

119.5

 

 

 

(18.6

)

 

n.m.

 

 

n.m.

 

Translation result

 

 

5.7

 

 

 

17.9

 

 

 

(1.2

)

 

n.m.

 

 

n.m.

 

Profit for the period

 

 

31.3

 

 

 

137.4

 

 

 

(19.8

)

 

n.m.

 

 

n.m.

 

ROE

 

 

37.6

%

 

 

138.9

%

 

n.m.

 

 

 

 

 

 

 

Efficiency ratio

 

 

11.3

%

 

 

15.0

%

 

 

14.4

%

 

 

 

 

 

 

 

 

13


RESULTS FROM INVESTMENTS

Results from Investments (1)

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

228.7

 

 

 

197.9

 

 

 

239.1

 

 

n.m.

 

 

n.m.

 

Interest and similar expenses

 

 

(16.4

)

 

 

(18.8

)

 

 

(28.6

)

 

 

52.3

%

 

 

74.0

%

Net interest and similar income

 

 

212.2

 

 

 

179.1

 

 

 

210.5

 

 

 

17.5

%

 

 

-0.8

%

Recovery (loss) due to impairment of financial investments

 

 

(13.1

)

 

 

0.9

 

 

 

(38.9

)

 

n.m.

 

 

n.m.

 

Net Interest and similar income after impairment loss

 

 

199.2

 

 

 

180.0

 

 

 

171.6

 

 

 

-4.7

%

 

 

-13.8

%

Net gain (loss) on sale of financial investments

 

 

4.3

 

 

 

17.4

 

 

 

(12.4

)

 

n.m.

 

 

n.m.

 

Net gain (loss) on financial assets at fair value through profit or loss

 

 

8.2

 

 

 

24.2

 

 

 

(18.8

)

 

n.m.

 

 

n.m.

 

Rental income

 

 

15.2

 

 

 

16.3

 

 

 

17.1

 

 

 

5.2

%

 

 

12.7

%

Gain on sale of investment property

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

n.m.

 

 

n.m.

 

Valuation gain (loss) from investment property

 

 

(11.4

)

 

 

14.0

 

 

 

18.3

 

 

 

30.2

%

 

n.m.

 

Other(1)

 

 

(4.7

)

 

 

(5.5

)

 

 

(2.8

)

 

 

-49.7

%

 

 

-40.6

%

Other income

 

 

11.7

 

 

 

66.3

 

 

 

1.4

 

 

 

-97.8

%

 

 

-87.6

%

Results from investments

 

 

210.9

 

 

 

246.3

 

 

 

173.1

 

 

 

-29.8

%

 

 

-17.9

%

 

(1)
Only includes transactions related to investments.

NET INTEREST AND SIMILAR INCOME

 

Net interest and similar income related to investments was S/ 210.5 million in 1Q24, an increase of S/ 31.4 million QoQ, or 17.5%, and a decrease S/ 1.7 million YoY, or -0.8%.

The quarterly performance was mainly explained by an increase of S/ 41.2 million in interest and similar income due to higher inflation rates, and a reduction of S/ 9.8 million in interest and similar expenses explained by an increase in Private Annuities reserves.

The decrease in the yearly performance was due to an increase in interest and similar expenses of S/ 12.2 million due to an increase in Private Annuities reserves, partially offset by an increase of S/ 10.4 million in interest and similar income, resulting from the growth of the fixed income portfolio.

 

RECOVERY (LOSS) DUE TO IMPAIRMENT OF FINANCIAL INVESTMENTS

 

Loss due to impairment of financial investments was S/ 38.9 million in 1Q24 due to a downgrade of a fixed income investment, compared to a recovery of S/ 0.9 million in 4Q23 and to a loss of S/ 13.1 million in 1Q23.

 

OTHER INCOME

 

Other income related to investments was S/ 1.4 million in 1Q24, a decrease of S/ 64.9 million QoQ and S/ 10.3 million YoY.

The quarterly decrease was explained by a net loss on financial assets at fair value of S/ 43.0 million and a net loss on sale of financial investments of S/ 29.8 million. These effects were partially compensated by a valuation gain from investment property of S/ 4.3 million.

 

The annual performance in other income was mainly due to a net loss on financial assets at fair value of S/ 27.0 million and a net loss on sale of financial investments of S/ 16.7 million. These factors were partially offset by increases in valuation gain from investment property of S/ 29.7 and in rental income of S/ 1.9 million.

 

INSURANCE RESULTS

14


Insurance Results

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Insurance Income

 

 

173.7

 

 

 

181.7

 

 

 

183.4

 

 

 

0.9

%

 

 

5.5

%

Insurance Expenses

 

 

(265.0

)

 

 

(205.9

)

 

 

(266.7

)

 

 

29.5

%

 

 

0.6

%

Insurance Results

 

 

(91.3

)

 

 

(24.1

)

 

 

(83.3

)

 

n.m.

 

 

 

-8.7

%

 

INSURANCE INCOME

Insurance Income

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Annuities

 

 

69.1

 

 

 

71.0

 

 

 

70.8

 

 

 

(0.3

)%

 

 

2.5

%

Individual Life

 

 

22.4

 

 

 

23.2

 

 

 

24.5

 

 

 

5.5

%

 

 

9.1

%

Retail Insurance

 

 

82.2

 

 

 

87.5

 

 

 

88.1

 

 

 

0.6

%

 

 

7.1

%

Total Insurance Income

 

 

173.7

 

 

 

181.7

 

 

 

183.4

 

 

 

0.9

%

 

 

5.5

%

 

Insurance income was S/ 183.4 million in 1Q24, an increase of S/ 1.7 million QoQ, or 0.9%, and a growth of S/ 9.7 million YoY, or 5.5%.

The quarterly performance was mainly explained by increases of S/ 1.3 million in individual life, due to higher PAA products premiums, and S/ 0.6 million in retail insurance due to higher CSM release, partially offset by a decrease of S/ 0.2 million in annuities.

The yearly increase was mainly explained by a growth in retail insurance of S/ 5.9 million, S/ 2.1 million in individual life and S/ 1.7 million in annuities. These increases were mainly explained by the higher BEL Release, resulting from the growth of the business.

 

INSURANCE EXPENSES

Insurance Expenses

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Annuities

 

 

(238.5

)

 

 

(203.0

)

 

 

(245.6

)

 

 

21.0

%

 

 

3.0

%

Individual Life

 

 

4.9

 

 

 

(5.5

)

 

 

9.4

 

 

n.m.

 

 

 

91.8

%

Retail Insurance

 

 

(31.5

)

 

 

2.7

 

 

 

(30.5

)

 

n.m.

 

 

 

-3.1

%

Total Insurance Expenses

 

 

(265.0

)

 

 

(205.9

)

 

 

(266.7

)

 

 

29.5

%

 

 

0.6

%

 

Insurance expenses were S/ 266.7 million in 1Q24, an increase of S/ 60.8 million QoQ, or -29.5%, and S/ 1.7 million YoY, or 0.6%.

 

The quarterly performance was mainly explained by higher expenses of S/ 42.6 million in annuities due to higher inflation rates and S/ 33.2 million in retail insurance due to a reversion of Loss Component in 4Q23 related to adjustments in mortality estimates, partially offset by lower expenses of S/ 14.9 million in individual life.

The yearly increase was mainly explained by growth in annuities of S/ 7.1, partially offset by S/ 4.5 million in individual life and S/ 1.0 million in retail insurance.

 

 

 

 

 

 

 

 

 

 

 

15


OTHER EXPENSES

Other Expenses

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Salaries and employee benefits

 

 

(23.3

)

 

 

(31.9

)

 

 

(29.9

)

 

 

-6.1

%

 

 

28.4

%

Administrative expenses

 

 

(17.0

)

 

 

(23.9

)

 

 

(20.0

)

 

 

-16.3

%

 

 

17.5

%

Depreciation and amortization

 

 

(4.7

)

 

 

(6.9

)

 

 

(5.5

)

 

 

-20.5

%

 

 

18.1

%

Expenses related to rental income

 

 

(1.4

)

 

 

(1.8

)

 

 

(1.6

)

 

 

-14.0

%

 

 

13.4

%

Other

 

 

(46.5

)

 

 

(29.4

)

 

 

(40.3

)

 

 

37.1

%

 

 

-13.4

%

Other expenses

 

 

(92.8

)

 

 

(93.9

)

 

 

(97.2

)

 

 

3.6

%

 

 

4.7

%

 

Other expenses increased by S/ 3.3 million QoQ, or 3.6%, and by S/ 4.4 million YoY, or 4.7%.

 

 

16


Inteligo

SUMMARY

 

Inteligo’s net profit was S/ 26.0 million in 1Q24, a S/ 1.5 million or 6.0% increase QoQ and a S/ 18.2 million increase YoY.

The quarterly performance was mainly attributable to mark-to-market gains on proprietary portfolio investments. Other effects that explained the QoQ growth were increases of S/ 0.5 million, or 2.5%, in net interest and similar income, S/ 1.7 million, or 4.8%, in net fee income from financial services, and a decrease of S/ 8.1 million, or 17.5%, in other expenses.

On an annual comparison, mark-to-market results on proprietary portfolio investments reverted from a negative of S/ -14.2 million in 1Q23 to a positive result of S/ 8.1 million in 1Q24. This was partially offset by decreases of 3.7% in net interest and similar income, and 3.1% in net fee income from financial services.

From a business development perspective, Inteligo’s prospection process continued to show positive results in terms of new account openings and assets under management growth in Private Wealth Management and mutual funds. Consequently, Inteligo’s AUM increased 3.6% QoQ and 10.2% YoY as of March 31, 2024.

Inteligo’s ROE was 11.2% in 1Q24, higher than the 10.9% reported in 4Q23.

 

Wealth Management Segment’s P&L Statement

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

43.8

 

 

 

49.0

 

 

 

48.0

 

 

 

-2.0

%

 

 

9.5

%

Interest and similar expenses

 

 

(22.6

)

 

 

(29.0

)

 

 

(27.6

)

 

 

-5.1

%

 

 

21.9

%

Net interest and similar income

 

 

21.2

 

 

 

20.0

 

 

 

20.5

 

 

 

2.5

%

 

 

-3.7

%

Impairment loss of loans, net of recoveries

 

 

0.1

 

 

 

0.0

 

 

 

(0.2

)

 

n.m.

 

 

n.m.

 

Recovery (loss) due to impairment of financial investments

 

 

(0.3

)

 

 

0.1

 

 

 

0.2

 

 

n.m.

 

 

n.m.

 

Net interest and similar income after impairment loss

 

 

21.0

 

 

 

20.1

 

 

 

20.6

 

 

 

2.4

%

 

 

-2.3

%

Fee income from financial services, net

 

 

39.6

 

 

 

36.6

 

 

 

38.3

 

 

 

4.8

%

 

 

-3.1

%

Other income

 

 

(14.2

)

 

 

13.2

 

 

 

8.1

 

 

 

-38.3

%

 

n.m.

 

Other expenses

 

 

(38.0

)

 

 

(45.9

)

 

 

(37.8

)

 

 

-17.5

%

 

 

-0.6

%

Income before translation result and income tax

 

 

8.3

 

 

 

24.0

 

 

 

29.2

 

 

 

21.7

%

 

n.m.

 

Translation result

 

 

0.4

 

 

 

1.3

 

 

 

(0.8

)

 

n.m.

 

 

n.m.

 

Income tax

 

 

(0.9

)

 

 

(0.7

)

 

 

(2.4

)

 

n.m.

 

 

n.m.

 

Profit for the period

 

 

7.8

 

 

 

24.5

 

 

 

26.0

 

 

 

6.0

%

 

n.m.

 

ROE

 

 

3.5

%

 

 

10.9

%

 

 

11.2

%

 

 

 

 

 

 

Efficiency ratio

 

 

80.7

%

 

 

64.2

%

 

 

55.5

%

 

 

 

 

 

 

 

ASSETS UNDER MANAGEMENT & DEPOSITS

 

AUM reached S/ 24,024.7 million in 1Q24, a S/ 843.2 million or 3.6% increase QoQ and a S/ 2,229.7 million or 10.2% increase YoY, mostly explained by inflows in mutual funds and Private Wealth Management.

Client deposits were S/ 3,189.1 million in 1Q24, a S/ 122.6 million or 3.7% reduction QoQ and a S/ 507.1 million or 13.7% decrease YoY, mainly driven by the adjustment of market rates.

 

17


NET INTEREST AND SIMILAR INCOME

Net interest and similar income

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Due from banks and inter-bank funds

 

 

10.7

 

 

 

11.3

 

 

 

8.3

 

 

 

-26.1

%

 

 

-22.5

%

   Financial Investments

 

 

9.5

 

 

 

14.2

 

 

 

16.5

 

 

 

16.4

%

 

 

73.4

%

   Loans

 

 

23.6

 

 

 

23.5

 

 

 

23.2

 

 

 

-1.5

%

 

 

-1.7

%

Total interest and similar income

 

 

43.8

 

 

 

49.0

 

 

 

48.0

 

 

 

-2.0

%

 

 

9.5

%

Interest and similar expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Deposits and obligations

 

 

(21.4

)

 

 

(27.0

)

 

 

(25.9

)

 

 

-4.0

%

 

 

21.1

%

   Due to banks and correspondents

 

 

(1.2

)

 

 

(2.1

)

 

 

(1.7

)

 

 

-19.1

%

 

 

36.5

%

Total interest and similar expenses

 

 

(22.6

)

 

 

(29.0

)

 

 

(27.6

)

 

 

-5.1

%

 

 

21.9

%

Net interest and similar income

 

 

21.2

 

 

 

20.0

 

 

 

20.5

 

 

 

2.5

%

 

 

-3.7

%

 

Inteligo’s net interest and similar income was S/ 20.5 million in 1Q24, a S/ 0.5 million, or 2.5% increase when compared with 4Q23, mainly explained by higher dividends received from proprietary portfolio investments and lower cost of funding during the quarter.

Net interest and similar income decreased S/ 0.7 million YoY, or 3.7%, as a result of a higher interest expense on deposits, which was attributed to the increases in the reference interest rate of the US Federal Reserve, partially offset by higher interest income in financial investments.

 

FEE INCOME FROM FINANCIAL SERVICES

Fee income from financial services, net

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Brokerage and custody services

 

 

2.9

 

 

 

2.5

 

 

 

2.8

 

 

 

11.3

%

 

 

-1.2

%

   Funds management

 

 

37.1

 

 

 

34.4

 

 

 

35.9

 

 

 

4.5

%

 

 

-3.1

%

Total income

 

 

39.9

 

 

 

36.9

 

 

 

38.7

 

 

 

5.0

%

 

 

-3.0

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Brokerage and custody services

 

 

(0.2

)

 

 

(0.2

)

 

 

(0.2

)

 

 

5.2

%

 

 

-5.2

%

   Others

 

 

(0.2

)

 

 

(0.1

)

 

 

(0.2

)

 

 

63.4

%

 

 

23.0

%

Total expenses

 

 

(0.4

)

 

 

(0.3

)

 

 

(0.4

)

 

 

31.0

%

 

 

8.5

%

Fee income from financial services, net

 

 

39.6

 

 

 

36.6

 

 

 

38.3

 

 

 

4.8

%

 

 

-3.1

%

 

Net fee income from financial services was S/ 38.3 million in 1Q24, an increase of S/ 1.7 million or 4.8% when compared to the previous quarter, mainly explained by higher fees from the wealth management segment.

On a YoY basis, net fee income from financial services decreased S/ 1.3 million, or 3.1%, mainly due to lower fees from funds management. This was explained by a lower frequency of client transactions, in turn driven by the persistent volatility in the financial markets and the high interest rates in money market products.

 

OTHER INCOME

Other income

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

Net gain on sale of financial investments

 

 

0.2

 

 

 

(3.5

)

 

 

(0.5

)

 

 

-85.6

%

 

n.m.

Net trading gain (loss)

 

 

(15.0

)

 

 

18.3

 

 

 

7.3

 

 

 

-60.2

%

 

n.m.

Other

 

 

0.6

 

 

 

(1.6

)

 

 

1.4

 

 

n.m.

 

 

n.m.

Total other income

 

 

(14.2

)

 

 

13.2

 

 

 

8.1

 

 

 

-38.3

%

 

n.m.

 

18


Inteligo’s other income reached S/ 8.1 million in 1Q24, compared to losses of S/ -14.2 million in 1Q23. This performance was mainly attributable to positive mark-to-market valuations on proprietary portfolio investments.

 

OTHER EXPENSES

Other expenses

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Salaries and employee benefits

 

 

(20.6

)

 

 

(27.4

)

 

 

(23.8

)

 

 

-13.3

%

 

 

15.7

%

Administrative expenses

 

 

(13.3

)

 

 

(13.5

)

 

 

(11.2

)

 

 

-17.0

%

 

 

-15.5

%

Depreciation and amortization

 

 

(3.8

)

 

 

(3.8

)

 

 

(2.2

)

 

 

-42.5

%

 

 

-42.4

%

Other

 

 

(0.4

)

 

 

(1.1

)

 

 

(0.6

)

 

 

-42.1

%

 

 

51.1

%

Total other expenses

 

 

(38.0

)

 

 

(45.9

)

 

 

(37.8

)

 

 

-17.5

%

 

 

-0.6

%

Efficiency ratio

 

 

80.7

%

 

 

64.2

%

 

 

55.5

%

 

 

 

 

 

 

 

Other expenses reached S/ 37.8 million in 1Q24, a decrease of S/ 8.1 million or 17.5% QoQ and of S/ 0.2 million or 0.6% YoY, mainly explained by lower salaries and employee benefits and administrative expenses.

 

 

19


Izipay

SUMMARY

 

Izipay’s profits were S/ 7.0 million in 1Q24, which represented an increase of 70.2% QoQ and a decrease of 42.1% YoY.

The quarterly growth in profits was attributed to a decrease of S/ 6.7 million in service cost and S/ 18.5 million in other expenses. These effects were partially offset by a decrease of S/ 11.5 million in payments acquirer, in turn mostly related to lower transactional volumes in payments acquirer as an effect of the Christmas season and S/ 13.0 million in other income.

The annual performance in net profit was mainly explained by a decrease of S/ 6.5 in net fee income from financial services, in turn related to a reduction in correspondent banking´s transactions of 25.3%, and a higher service cost due to increases in acquirer license fees as an effect of an increase of 11% transaction volumes in payments acquirer. Additionally, growth in other expenses of S/ 4.2 million, mainly associated to higher administrative expenses.

Izipay’s ROE was 11.1% in 1Q24, higher than the 6.6% but lower than the 21.7% reported in 4Q23 and 1Q23, respectively.

 

Payments Segment’s P&L Statement

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Interest and similar income

 

 

1.7

 

 

 

3.0

 

 

 

2.9

 

 

 

-2.5

%

 

 

71.6

%

Interest and similar expenses

 

 

(1.1

)

 

 

(1.2

)

 

 

(1.2

)

 

 

-4.5

%

 

 

10.8

%

Net interest and similar income

 

 

0.6

 

 

 

1.8

 

 

 

1.7

 

 

 

-1.1

%

 

n.m.

 

Fee income from financial services, net

 

 

86.4

 

 

 

84.9

 

 

 

79.9

 

 

 

-5.8

%

 

 

-7.5

%

Payments acquirer

 

 

170.3

 

 

 

183.1

 

 

 

171.6

 

 

 

-6.3

%

 

 

0.7

%

Correspondent banking

 

 

10.0

 

 

 

8.0

 

 

 

8.0

 

 

 

0.0

%

 

 

-20.1

%

Credit cards processor

 

 

7.5

 

 

 

7.8

 

 

 

7.6

 

 

 

-2.5

%

 

 

2.0

%

Service Cost

 

 

(101.4

)

 

 

(114.0

)

 

 

(107.2

)

 

 

-5.9

%

 

 

5.8

%

Other income

 

 

7.3

 

 

 

21.8

 

 

 

8.8

 

 

 

-59.6

%

 

 

19.9

%

Other expenses

 

 

(73.9

)

 

 

(96.6

)

 

 

(78.1

)

 

 

-19.1

%

 

 

5.7

%

Income before translation result and income tax

 

 

20.5

 

 

 

11.9

 

 

 

12.3

 

 

 

4.1

%

 

 

-39.8

%

Translation result

 

 

(0.7

)

 

 

(1.5

)

 

 

(0.4

)

 

 

-76.3

%

 

 

-49.4

%

Income tax

 

 

(7.7

)

 

 

(6.2

)

 

 

(5.0

)

 

 

-19.7

%

 

 

-35.2

%

Profit for the period

 

 

12.1

 

 

 

4.1

 

 

 

7.0

 

 

 

70.2

%

 

 

-42.1

%

ROE

 

 

21.7

%

 

 

6.6

%

 

 

11.1

%

 

 

 

 

 

 

Efficiency ratio

 

 

72.5

%

 

 

82.0

%

 

 

85.2

%

 

 

 

 

 

 

 

FEE INCOME FROM FINANCIAL SERVICES, NET

 

Net fee income from financial services was S/ 79.9 million in 1Q24, a decrease of S/ 5.0 million or 5.8% QoQ. The result was explained by a decrease of S/ 11.5 million or 6.3% in payments acquirer, due to lower transactional volumes related to a seasonal effect and a reduction of net acquirer income as a result of the client segment mix. These effects were partially offset by a decrease of S/ 6.8 million, or 5.9% in service cost.

On a YoY basis, net fee income from financial services decreased S/ 6.5 million or 7.5%. The result was explained by an increase of S/ 5.8 million, or 5.8%, in service cost due to an increase of 11% transactional volumes. Other effect that contributed to the result was a reduction in correspondent banking of S/ 2.0 million, or 20.1%, due to a decrease in transactions of 25.3%.

 

 

 

 

 

 

 

 

 

 

20


Fee income from financial services, net

 

.

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments acquirer

 

 

170.3

 

 

 

183.1

 

 

 

171.6

 

 

 

-6.3

%

 

 

0.7

%

Correspondent banking

 

 

10.0

 

 

 

8.0

 

 

 

8.0

 

 

 

0.0

%

 

 

-20.1

%

Credit cards processor

 

 

7.5

 

 

 

7.8

 

 

 

7.6

 

 

 

-2.5

%

 

 

2.0

%

Total income

 

 

187.8

 

 

 

198.9

 

 

 

187.2

 

 

 

-5.9

%

 

 

-0.3

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Cost

 

 

(101.4

)

 

 

(114.0

)

 

 

(107.2

)

 

 

-5.9

%

 

 

5.8

%

Total expenses

 

 

(101.4

)

 

 

(114.0

)

 

 

(107.2

)

 

 

-5.9

%

 

 

5.8

%

Fee income from financial services, net

 

 

86.4

 

 

 

84.9

 

 

 

79.9

 

 

 

-5.8

%

 

 

-7.5

%

 

OTHER EXPENSES

 

Other expenses reached S/ 78.1 million in 1Q24, a decrease of S/ 18.5 million, or 19.1% QoQ, explained by lower administrative expenses and others, in turn most related to negative effects recognized in 4Q23.

On a yearly basis, other expenses grew S/ 4.2 million or 5.7%, mainly as a result of an increase in administrative expenses, in turn associated with higher customer acquisition, and higher depreciation and amortization charges as a result of growth in operations.

 

Other expenses

 

S/ million

 

1Q23

 

 

4Q23

 

 

1Q24

 

 

%chg
QoQ

 

 

%chg
YoY

 

Salaries and employee benefits

 

 

(18.3

)

 

 

(19.5

)

 

 

(18.6

)

 

 

-5.0

%

 

 

1.5

%

Administrative expenses

 

 

(37.7

)

 

 

(54.0

)

 

 

(43.0

)

 

 

-20.3

%

 

 

14.0

%

Depreciation and amortization

 

 

(12.4

)

 

 

(15.3

)

 

 

(15.5

)

 

 

1.0

%

 

 

25.0

%

Other

 

 

(5.5

)

 

 

(7.7

)

 

 

(1.0

)

 

 

-86.8

%

 

 

-81.4

%

Total other expenses

 

 

(73.9

)

 

 

(96.6

)

 

 

(78.1

)

 

 

-19.1

%

 

 

5.7

%

Efficiency ratio

 

 

72.5

%

 

 

82.0

%

 

 

85.2

%

 

 

 

 

 

 

 

21


 

 

Intercorp Financial Services Inc. and Subsidiaries

Interim consolidated financial statements as of March 31, 2024, December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023

 


 

Interim consolidated financial statements as of March 31, 2024, December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023

Content

Interim consolidated financial statements

 

 

 

Interim consolidated statement of financial position

3

 

 

Interim consolidated statement of income

4

 

 

Interim consolidated statement of other comprehensive income

5

 

 

Interim consolidated statement of changes in equity

6

 

 

Interim consolidated statement of cash flows

7

 

 

Notes to the interim consolidated financial statements

9

 

 

 


 

Interim consolidated statement of financial position

As of March 31, 2024 and December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Note

 

31.03.2024

 

 

31.12.2023

 

 

 

 

 

S/(000)

 

 

S/(000)

 

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

 

4(a)

 

 

 

 

 

 

Non-interest bearing

 

 

 

 

3,258,209

 

 

 

3,059,226

 

Interest bearing

 

 

 

 

8,796,071

 

 

 

6,038,794

 

Restricted funds

 

 

 

 

910,742

 

 

 

720,691

 

 

 

 

 

12,965,022

 

 

 

9,818,711

 

Inter-bank funds

 

4(e)

 

 

396,215

 

 

 

524,915

 

Financial investments

 

5

 

 

26,515,899

 

 

 

26,721,991

 

Loans, net:

 

6

 

 

 

 

 

 

Loans, net of unearned interest

 

 

 

 

48,218,152

 

 

 

48,869,807

 

Impairment allowance for loans

 

 

 

 

(2,222,708

)

 

 

(2,349,425

)

 

 

 

 

45,995,444

 

 

 

46,520,382

 

Investment property

 

7

 

 

1,353,584

 

 

 

1,298,892

 

Property, furniture and equipment, net

 

 

 

 

825,929

 

 

 

804,832

 

Due from customers on acceptances

 

 

 

 

19,194

 

 

 

40,565

 

Intangibles and goodwill, net

 

 

 

 

1,663,306

 

 

 

1,687,120

 

Other accounts receivable and other assets, net

 

8

 

 

2,688,981

 

 

 

2,125,148

 

Reinsurance contract assets

 

12

 

 

27,839

 

 

 

26,287

 

Deferred Income Tax asset, net

 

 

 

 

14,547

 

 

 

55,936

 

Total assets

 

 

 

 

92,465,960

 

 

 

89,624,779

 

Liabilities and equity

 

 

 

 

 

 

 

 

Deposits and obligations

 

9

 

 

 

 

 

 

Non-interest bearing

 

 

 

 

7,138,110

 

 

 

7,960,318

 

Interest bearing

 

 

 

 

43,961,508

 

 

 

41,227,916

 

 

 

 

 

51,099,618

 

 

 

49,188,234

 

Inter-bank funds

 

4(e)

 

 

754,678

 

 

 

119,712

 

Due to banks and correspondents

 

10

 

 

8,812,058

 

 

 

9,025,930

 

Bonds, notes and other obligations

 

11

 

 

5,560,008

 

 

 

5,551,629

 

Due from customers on acceptances

 

 

 

 

19,194

 

 

 

40,565

 

Insurance and reinsurance contract liabilities

 

12

 

 

11,857,704

 

 

 

12,207,536

 

Other accounts payable, provisions and other liabilities

 

8

 

 

3,957,270

 

 

 

3,407,360

 

Deferred Income Tax liability, net

 

 

 

 

99,854

 

 

 

75,712

 

Total liabilities

 

 

 

 

82,160,384

 

 

 

79,616,678

 

Equity, net

 

13

 

 

 

 

 

 

Equity attributable to IFS’s shareholders:

 

 

 

 

 

 

 

 

Capital stock

 

 

 

 

1,038,017

 

 

 

1,038,017

 

Treasury stock

 

 

 

 

(84,309

)

 

 

(84,309

)

Capital surplus

 

 

 

 

532,771

 

 

 

532,771

 

Reserves

 

 

 

 

6,000,000

 

 

 

6,000,000

 

Unrealized results, net

 

 

 

 

(315,723

)

 

 

(457,793

)

Retained earnings

 

 

 

 

3,078,478

 

 

 

2,921,531

 

 

 

 

 

10,249,234

 

 

 

9,950,217

 

Non-controlling interest

 

 

 

 

56,342

 

 

 

57,884

 

Total equity, net

 

 

 

 

10,305,576

 

 

 

10,008,101

 

Total liabilities and equity, net

 

 

 

 

92,465,960

 

 

 

89,624,779

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3


 

 

Interim consolidated statement of income

For the three-month periods ended March 31, 2024 and 2023

 

 

 

 

 

 

 

 

 

 

 

Note

 

31.03.2024

 

 

31.03.2023

 

 

 

 

 

S/(000)

 

 

S/(000)

 

Interest and similar income

 

15

 

 

1,800,183

 

 

 

1,658,035

 

Interest and similar expenses

 

15

 

 

(667,031

)

 

 

(584,551

)

Net interest and similar income

 

 

 

 

1,133,152

 

 

 

1,073,484

 

Impairment loss on loans, net of recoveries

 

6(d.1) and (d.2)

 

 

(548,941

)

 

 

(367,611

)

Loss due to impairment of financial investments

 

5(c) and 5(d)

 

 

(38,748

)

 

 

(13,177

)

Net interest and similar income after impairment loss

 

 

 

 

545,463

 

 

 

692,696

 

Fee income from financial services, net

 

16

 

 

268,257

 

 

 

301,318

 

Net gain on foreign exchange transactions

 

 

 

 

109,577

 

 

 

7,405

 

Net (loss) gain on sale of financial investments

 

 

 

 

(7,101

)

 

 

234

 

Net (loss) gain on financial assets at fair value through profit or loss

 

5(e) and 10(b)

 

 

(14,433

)

 

 

78,979

 

Net gain on investment property

 

7(b)

 

 

35,661

 

 

 

4,024

 

Other income

 

17

 

 

24,026

 

 

 

52,472

 

 

 

 

 

415,987

 

 

 

444,432

 

Gross result of insurance activities

 

18

 

 

(83,330

)

 

 

(91,271

)

 

 

 

 

 

(83,330

)

 

 

(91,271

)

Other expenses

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

 

(220,308

)

 

 

(233,830

)

Administrative expenses

 

 

 

 

(321,870

)

 

 

(302,402

)

Depreciation and amortization

 

 

 

 

(103,853

)

 

 

(90,961

)

Other expenses

 

17

 

 

(44,309

)

 

 

(52,924

)

 

 

 

 

(690,340

)

 

 

(680,117

)

Income before translation result and Income Tax

 

 

 

 

187,780

 

 

 

365,740

 

Exchange difference

 

 

 

 

(4,928

)

 

 

5,584

 

Income Tax

 

14(e)

 

 

(41,718

)

 

 

(104,410

)

Net profit for the period

 

 

 

 

141,134

 

 

 

266,914

 

Attributable to:

 

 

 

 

 

 

 

 

IFS’s shareholders

 

 

 

 

140,159

 

 

 

265,093

 

Non-controlling interest

 

 

 

 

975

 

 

 

1,821

 

 

 

 

 

141,134

 

 

 

266,914

 

Earnings per share attributable to IFS’s shareholders, basic and diluted (stated in Soles)

 

19

 

 

1.224

 

 

 

2.297

 

Weighted average number of outstanding shares (in thousands)

 

19

 

 

114,480

 

 

 

115,418

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4


 

Interim consolidated statement of other comprehensive income

For the three-month periods ended March 31, 2024 and 2023

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.03.2023

 

 

S/(000)

 

 

S/(000)

 

Net profit for the period

 

141,134

 

 

 

266,914

 

Other comprehensive income that will not be reclassified to the consolidated statement of income in subsequent periods:

 

 

 

 

 

Gain on valuation of equity instruments at fair value through other comprehensive income

 

20,795

 

 

 

35,888

 

Income Tax

 

(1,591

)

 

 

(162

)

Total unrealized gain that will not be reclassified to the consolidated statement of income in subsequent periods

 

19,204

 

 

 

35,726

 

Other comprehensive income to be reclassified to the consolidated statement of income in subsequent periods:

 

 

 

 

 

Net movement of debt instruments at fair value through other comprehensive income

 

(299,390

)

 

 

235,614

 

Income Tax

 

(953

)

 

 

(1,143

)

 

(300,343

)

 

 

234,471

 

Insurance reserves at fair value

 

451,405

 

 

 

(274,634

)

Net movement of cash flow hedges

 

(14,043

)

 

 

7,258

 

Income Tax

 

2,179

 

 

 

806

 

 

(11,864

)

 

 

8,064

 

Translation of foreign operations

 

1,695

 

 

 

(10,852

)

Total gain (loss) unrealized to be reclassified to the consolidated statement of income in subsequent periods

 

140,893

 

 

 

(42,951

)

Other comprehensive income for the period

 

160,097

 

 

 

(7,225

)

Total comprehensive income for the period, net of Income Tax

 

301,231

 

 

 

259,689

 

Attributable to:

 

 

 

 

 

IFS’s shareholders

 

299,950

 

 

 

257,412

 

Non-controlling interest

 

1,281

 

 

 

2,277

 

 

 

301,231

 

 

 

259,689

 

The accompanying notes are an integral part of these consolidated financial statements.

 

5


 

Interim consolidated statement of changes in equity

For the three-month periods ended March 31, 2024 and 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to IFS’s shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized results, net

 

 

 

 

 

 

 

 

 

 

Number of shares

 

 

 

 

 

 

 

 

 

Instruments that will not be reclassified to the consolidated statement of income

 

Instruments that will be reclassified to the consolidated statement of income

 

 

 

 

 

 

 

 

 

 

Issued

 

In treasury

 

Capital stock

 

Treasury stock

 

Capital surplus

 

Reserves

 

Equity instruments at fair value

 

Debt instruments at fair value

 

Insurance premiums reserves

 

Cash flow hedges reserve

 

Translation of foreign operations

 

Retained earnings

 

Total

 

Non-controlling interest

 

Total equity, net

 

 

(in thousands)

 

(in thousands)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Balance as of January 1, 2023

 

115,447

 

(29)

 

1,038,017

 

(3,363)

 

532,771

 

6,000,000

 

(46,763)

 

(2,420,809)

 

1,711,493

 

(9,262)

 

210,920

 

2,359,464

 

9,372,468

 

53,759

 

9,426,227

Net profit for the period

 

 

 

 

 

 

 

 

 

 

 

 

265,093

 

265,093

 

1,821

 

266,914

Other comprehensive income

 

 

 

 

 

 

 

35,669

 

233,608

 

(274,183)

 

8,077

 

(10,852)

 

 

(7,681)

 

456

 

(7,225)

Total comprehensive income

 

 

 

 

 

 

 

35,669

 

233,608

 

(274,183)

 

8,077

 

(10,852)

 

265,093

 

257,412

 

2,277

 

259,689

Declared and paid dividends, Note 13(a)

 

 

 

 

 

 

 

 

 

 

 

 

(511,788)

 

(511,788)

 

 

(511,788)

Purchase of treasury stock, Note 13(b)

 

 

 

 

76

 

 

 

 

 

 

 

 

 

76

 

 

76

Dividends paid to non-controlling interest of Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,078)

 

(4,078)

Sale of equity instruments at fair value through other comprehensive income

 

 

 

 

 

 

 

(5,685)

 

 

 

 

 

5,685

 

 

 

Others

 

 

 

 

 

 

 

 

 

 

 

 

(9,603)

 

(9,603)

 

(15)

 

(9,618)

Balance as of March 31, 2023

 

115,447

 

(29)

 

1,038,017

 

(3,287)

 

532,771

 

6,000,000

 

(16,779)

 

(2,187,201)

 

1,437,310

 

(1,185)

 

200,068

 

2,108,851

 

9,108,565

 

51,943

 

9,160,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2024

 

115,447

 

(967)

 

1,038,017

 

(84,309)

 

532,771

 

6,000,000

 

(64,141)

 

(1,293,563)

 

742,894

 

(31,933)

 

188,950

 

2,921,531

 

9,950,217

 

57,884

 

10,008,101

Net profit for the period

 

 

 

 

 

 

 

 

 

 

 

 

140,159

 

140,159

 

975

 

141,134

Other comprehensive income

 

 

 

 

 

 

 

19,123

 

(299,863)

 

450,664

 

(11,828)

 

1,695

 

 

159,791

 

306

 

160,097

Total comprehensive income

 

 

 

 

 

 

 

19,123

 

(299,863)

 

450,664

 

(11,828)

 

1,695

 

140,159

 

299,950

 

1,281

 

301,231

Dividends paid to non-controlling interest of Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,820)

 

(2,820)

Sale of equity instruments at fair value through other comprehensive income

 

 

 

 

 

 

 

(17,721)

 

 

 

 

 

17,721

 

 

 

Others

 

 

 

 

 

 

 

 

 

 

 

 

(933)

 

(933)

 

(3)

 

(936)

Balance as of March 31, 2024

 

115,447

 

(967)

 

1,038,017

 

(84,309)

 

532,771

 

6,000,000

 

(62,739)

 

(1,593,426)

 

1,193,558

 

(43,761)

 

190,645

 

3,078,478

 

10,249,234

 

56,342

 

10,305,576

 

The accompanying notes are an integral part of these consolidated financial statements.

6


 

Interim consolidated statement of cash flows

For the three-month periods ended March 31, 2024 and 2023

 

 

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Cash flows from operating activities

 

 

 

 

 

 

Net profit for the period

 

 

141,134

 

 

 

266,914

 

Plus (minus) adjustments to net profit

 

 

 

 

 

 

Impairment loss on loans, net of recoveries

 

 

548,941

 

 

 

367,611

 

Loss due to impairment of financial investments

 

 

38,748

 

 

 

13,177

 

Depreciation and amortization

 

 

103,853

 

 

 

90,961

 

Provision for sundry risks

 

 

5,614

 

 

 

2,754

 

Deffered Income Tax

 

 

64,958

 

 

 

(18,113

)

Net loss (gain) on sale of financial investments

 

 

7,101

 

 

 

(234

)

Net loss (gain) of financial assets at fair value through profit or loss

 

 

14,433

 

 

 

(78,979

)

Net (gain) loss for valuation of investment property

 

 

(18,286

)

 

 

11,384

 

Profit from sale of property, furniture and equipment

 

 

 

 

 

(15,300

)

Exchange difference

 

 

4,928

 

 

 

(5,584

)

Decrease in accrued interest receivable

 

 

149,668

 

 

 

80,004

 

Increase in accrued interest payable

 

 

147,155

 

 

 

74,890

 

Net changes in assets and liabilities

 

 

 

 

 

 

Net increase in loan portfolio

 

 

(3,796

)

 

 

(548,667

)

Net (increase) decrease in other accounts receivable and other assets

 

 

(505,837

)

 

 

370,809

 

Net (increase) decrease in restricted funds

 

 

(190,560

)

 

 

86,349

 

Increase in deposits and obligations

 

 

1,752,477

 

 

 

1,189,602

 

(Decrease) increase in due to banks and correspondents

 

 

(196,588

)

 

 

782,197

 

Increase (decrease) in other accounts payable, provisions and other liabilities

 

 

550,237

 

 

 

(264,219

)

(Increase) decrease of investments at fair value through profit or loss

 

 

(61,122

)

 

 

231,444

 

Net cash provided by operating activities

 

 

2,553,058

 

 

 

2,637,000

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

7


 

Interim consolidated statements of cash flows (continued)

 

 

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Cash flows from investing activities

 

 

 

 

 

 

Purchase of investments at fair value through other comprehensive income and at amortized cost

 

 

(218,854

)

 

 

(1,782,926

)

Purchase of property, furniture and equipment

 

 

(32,516

)

 

 

(48,144

)

Purchase of intangible assets

 

 

(40,458

)

 

 

(48,522

)

Purchase of investment property

 

 

(36,406

)

 

 

(1,705

)

Sale of property, furniture and equipment

 

 

 

 

 

32,667

 

Net cash used in investing activities

 

 

(328,234

)

 

 

(1,848,630

)

Cash flows from financing activities

 

 

 

 

 

 

Issuance of bonds, notes and other obligations

 

 

1,114,800

 

 

 

 

Payments of bonds, notes and other obligations

 

 

(1,115,140

)

 

 

(1,999,131

)

Net decrease in receivable inter-bank funds

 

 

128,700

 

 

 

183,244

 

Net increase in payable inter-bank funds

 

 

634,966

 

 

 

351,867

 

Sale of treasury stock, net

 

 

 

 

 

76

 

Dividend payments to non-controlling interest

 

 

(2,820

)

 

 

(4,078

)

Lease payments

 

 

(19,277

)

 

 

(100,336

)

Net cash provided by (used in) financing activities

 

 

741,229

 

 

 

(1,568,358

)

Net increase (decrease) in cash and cash equivalents

 

 

2,966,053

 

 

 

(779,988

)

Translation (loss) gain on cash and cash equivalents

 

 

(8,300

)

 

 

1,509

 

Cash and cash equivalents at the beginning of the period

 

 

9,074,211

 

 

 

12,707,776

 

Cash and cash equivalents at the end of the period

 

 

12,031,964

 

 

 

11,929,297

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

8


 

Notes to the interim consolidated financial statements

As of March 31, 2024 and December 31, 2023

1. Business activity and current context

(a) Business activity -

Intercorp Financial Services Inc. and Subsidiaries (henceforth "IFS", “the Company” or “the Group”), is a limited liability holding company incorporated in the Republic of Panama on September 19, 2006, and is a Subsidiary of Intercorp Peru Ltd. (henceforth “Intercorp Peru”), a holding Company incorporated in 1997 in the Commonwealth of the Bahamas. As of March 31, 2024 and December 31, 2023, Intercorp Peru holds directly and indirectly 71.44 percent of the issued capital stock of IFS, equivalent to 71.20 percent of the outstanding capital stock of IFS.

 

IFS’s legal domicile is located at Av. Carlos Villarán 140 Urb. Santa Catalina, La Victoria, Lima, Peru.

 

As of March 31, 2024 and December 31, 2023, IFS holds 99.30 percent of the capital stock of Banco Internacional del Peru S.A.A. – Interbank (henceforth “Interbank”), 99.84 percent of the capital stock of Interseguro Compañía de Seguros S.A. (henceforth “Interseguro”), 100 percent of the capital stock of Inteligo Group Corp. (henceforth “Inteligo”) and 100 percent of Procesos de Medios de Pago and its subsidiary Izipay S.A.C (henceforth and together "Izipay"), acquired in April 2022.

 

The operations of Interbank, Interseguro and Izipay are concentrated in Peru, while the operations of Inteligo and its Subsidiaries (Interfondos S.A. Sociedad Administradora de Fondos, Inteligo Sociedad Agente de Bolsa S.A. and Inteligo Bank Ltd.) are mainly concentrated in Peru and Panama.

 

The main activities of IFS’s Subsidiaries and their assets, liabilities, equity, operating income, net income, balances and other relevant information are presented in Note 2.

 

The interim consolidated financial statements as of March 31, 2024, have been approved by the Audit Committee and Board’s Meeting held on May 9 and 13, 2024, respectively. The audited consolidated financial statements as of December 31, 2023, were approved by the General Shareholders’ Meeting held on April 01, 2024.

 

(b) Regulatory changes due to the Covid-19 pandemic and the political and social context –

During the Covid-19 pandemic, the Ministry of Economy and Finance (henceforth “MEF”, by its Spanish acronym), Central Reserve Bank of Peru (henceforth “BCRP”, by its Spanish acronym) and the SBS issued several resolutions aimed to alleviate the impacts of the pandemic.

In this sense, during the years 2020 and 2021, the Peruvian government implemented extraordinary measures to secure the continuity of the economy’s payment chain. The main measures implemented in the financial system were related to facilities for loans rescheduling (payment deferrals), suspension of counting of past due days, partial or total withdrawal of deposits for severance indemnity (“CTS” by its Spanish acronym), Repo operations with the Banco Central de Reserva del Peru (“BCRP” by its Spanish acronym) and the launching of credit programs guaranteed by the Peruvian Government, such as “Reactiva Peru”.

These measures had effects mainly on the subsidiary Interbank. Under the program “Reactiva Peru”, Interbank granted loans for S/6,617,142,000, which as of March 31, 2024 amounts to S/713,593,000, including accrued interest for S/45,887,000; S/552,675,000 being the amount covered by the guarantee of the Peruvian Government (as of December 31, 2023 amounted to S/848,886,000, including accrued interest for S/46,277,000; S/675,492,000 being the amount covered by the guarantee of the Peruvian Government). It should be noted that as of March 31, 2024 and December 31, 2023, Interbank made rescheduling for the “Reactiva Peru” program for an amount of approximately S/14,968,000 and S/25,928,000, respectively. On the other hand, as of March 31, 2024 and December 31, 2023, the balance of rescheduled loans under the “Reactiva Peru” program amounts to approximately S/596,682,000 and S/730,508,000, respectively.

On the other hand, the Superintendence of Banking, Insurance and Private Pension Funds (henceforth “SBS”, by its Spanish acronym) issued Official Multiple Letters that stablished measures related to loan rescheduling aimed to facilitate the debt payment of the financial sector’s clients. Also, the SBS authorized the entities of the financial sector to modify the contractual conditions of retail loans, provided they comply with several requirements. As of March 31,

9


 

2024 and December 31, 2023, the balances of the rescheduled loans amount to approximately S/3,205,669,000 and S/3,513,905,000, respectively.

2. Subsidiaries

IFS’s Subsidiaries are the following:

 

(a) Banco Internacional del Peru S.A.A. - Interbank and Subsidiaries -

Interbank is incorporated in Peru and is authorized by the SBS to operate as a universal bank in accordance with Peruvian law. The Interbank's operations are governed by the General Act of the Banking and Insurance System and Organic Act of the SBS – Act No. 26702 and its amendments (henceforth “the Banking and Insurance Act”), that establishes the requirements, rights, obligations, restrictions and other operating conditions that financial and insurance entities must comply with in Peru.

 

As of March 31, 2024, Interbank had 151 offices (153 offices as of December 31, 2023). Additionally, it holds approximately 100 percent of the shares of the following Subsidiaries:

 

Entity

Activity

 

 

 

 

Internacional de Títulos Sociedad Titulizadora S.A. - Intertítulos S.T.

Manages securitization funds.

Compañía de Servicios Conexos Expressnet S.A.C.

Services related to credit card transactions or products related to the brand “American Express”.

 

 

(b) Interseguro Compañía de Seguros S.A. and Subsidiary -

Interseguro is incorporated in Peru and its operations are governed by the Banking and Insurance Act. It is authorized by the SBS to issue life and general risk insurance contracts.

 

Interseguro holds participations in Patrimonio Fideicometido D.S.093-2002-EF, Interproperties Holding (henceforth “Patrimonio Fideicometido – Interproperties Holding”), that is a structured entity, incorporated in April 2008, and in which several investors (related parties to the Group) contributed investment properties. Each investor or investors have ownership of and specific control over the contributed investment property. The fair values of the properties contributed by Interseguro that were included in this structured entity as of March 31, 2024 and December 31, 2023, amounted to S/85,615,000 and S/85,272,000, respectively; see Note 7. For accounting purposes and under IFRS 10 “Consolidated Financial Statements” the assets included in said structure are considered “silos”, because they are ring-fenced parts of the wider structured entity (the Patrimonio Fideicometido - Interproperties Peru). IFS has ownership and decision-making power over these properties and the Group has the exposure or rights to their returns; therefore, IFS consolidates the silos containing the investment properties that it controls.

 

(c) Inteligo Group Corp. and Subsidiaries -

Inteligo is an entity incorporated in the Republic of Panama. As of March 31, 2024 and December 31, 2023, it holds 100 percent of the shares of the following Subsidiaries:

 

Entity

Activity

 

 

Inteligo Bank Ltd.

It is incorporated in The Commonwealth of the Bahamas and has a branch established in the Republic of Panama that operates under an international license issued by the Superintendence of Banks of the Republic of Panama. Its main activity is to provide private and institutional banking services, mainly to Peruvian citizens.

Inteligo Sociedad Agente de Bolsa S.A.

Brokerage firm incorporated in Peru.

Inteligo Peru Holding S.A.C.

Financial holding company incorporated in Peru in December 2018. As of March 31, 2024 and December 31, 2023, it holds 99.99 percent interest in Interfondos S.A. Sociedad Administradora de Fondos, company that manages mutual funds and investment funds.

Inteligo USA, Inc.

Incorporated in the United States of America in January 2019, provides investment consultancy and related services.

 

 

10


 

 

(d) Negocios e Inmuebles S.A. -

This entity was acquired by IFS as part of the purchase of Seguros Sura and Hipotecaria Sura in year 2017. As of March 31, 2024 and December 31, 2023, Negocios e Inmuebles S.A., holds 8.50 percent of Interseguro’s capital stock.

 

(e) San Borja Global Opportunities S.A.C. -

Its corporate purpose is the marketing of products and services through Internet, telephony or related and it operates under the commercial name of Shopstar (online Marketplace) dedicated to the sale of products from different stores locally.

 

(f) IFS Digital S.A.C. -

Entity incorporated in August 2020, which its corporate purpose is to perform any type of investments and related services.

 

(g) Procesos de Medios de Pago S.A. and subsidiary Izipay S.A.C. (Izipay) –

Both companies were acquired in April 2022. Procesos de Medios de Pago is dedicated to the development, management and operation of the shared service of transaction processing of credit and debit cards, through the acquirer role for the brands MasterCard, Visa and other private brands; also, it renders the processing service, through the issuer role, to entities of the financial system. Izipay is dedicated to the facilitation of payments and services, offering its services of technological, operating and safety infrastructure through the affiliation of commercial stores, as well as installation and maintenance of infrastructure for transactions through the electronic commerce modality, interconnected with the networks of payment methods processors.

 

In April 2022, IFS acquired control of Izipay, becoming it its Subsidiary. Since this time, Izipay consolidates its financial information together with IFS.

 

3. Significant accounting policies

3.1 Basis of presentation and use of estimates –

The interim consolidated financial statements as of March 31, 2024 and December 31, 2023, have been prepared in accordance with IAS 34 “Interim Financial Reporting”.

 

The interim consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the IFS’s Audited Consolidated Financial Statements as of March 31, 2024 and December 31, 2023 (henceforth “Annual Consolidated Financial Statements”).

 

The accompanying interim consolidated financial statements have been prepared on the historical cost basis, except for investment property, derivative financial instruments, financial investments at fair value through profit or loss and through other comprehensive income, which have been measured at fair value. The interim consolidated financial statements are presented in Soles, which is the functional currency of the Group, and all values are rounded to the nearest thousand (S/(000)), except when otherwise indicated.

 

The preparation of the interim consolidated financial statements, in accordance with the International Financial Reporting Standards (henceforth “IFRS”) as issued by the International Accounting Standards Board (IASB), requires Management to make estimations and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of significant events in the notes to the interim consolidated financial statements.

 

In that sense, the estimates and criteria are continually assessed and are based on historical experience, as well as other factors, including expectations of future events that are believed to be reasonable under the current circumstances. Existing circumstances and assumptions about future developments, however, may change due to markets’ behavior or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. Actual results could differ from those estimates. The most significant estimates comprised in the accompanying interim consolidated financial statements are related to the calculation of the impairment of the portfolio of loan and financial investments, the measurement of the fair value of the financial investments and investment property, the assessment of the impairment of goodwill and the intangible of indefinite

11


 

life, the liabilities for Insurance contracts and measurement of the fair value of derivative financial instruments; also, there are other estimates such as provisions for litigation, the estimated useful life of intangible assets and property, furniture and equipment, the estimation of deferred Income Tax and the determination of the terms and estimation of the interest rate of the lease contracts.

 

3.2 Basis of consolidation –

The interim consolidated financial statements of IFS comprise the financial statements of Intercorp Financial Services Inc. and Subsidiaries. The method adopted by IFS to consolidate financial information with its Subsidiaries is described in Note 3.3 to the Annual Consolidated Financial Statements and has not changed since then.

 

4. Cash and due from banks and inter-bank funds

(a) The detail of cash and due from banks is as follows:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Cash and clearing (b)

 

 

2,122,452

 

 

 

2,248,845

 

Deposits in the BCRP (b)

 

 

8,277,858

 

 

 

5,215,762

 

Deposits in banks (c)

 

 

1,631,654

 

 

 

1,609,604

 

Total cash and cash equivalent

 

 

12,031,964

 

 

 

9,074,211

 

Accrued interest

 

 

22,316

 

 

 

23,809

 

Restricted funds (d)

 

 

910,742

 

 

 

720,691

 

Total

 

 

12,965,022

 

 

 

9,818,711

 

 

Cash and cash equivalents presented in the interim consolidated statements of cash flows exclude the restricted funds and accrued interest.

 

(b) In accordance with rules in force, Interbank is required to maintain a legal reserve to honor its obligations with the public. This reserve is comprised of funds kept in Interbank and in the BCRP and is made up as follows:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Legal reserve (*)

 

 

 

 

 

 

Deposits in the BCRP

 

 

6,464,658

 

 

 

4,593,592

 

Cash in vaults

 

 

1,905,413

 

 

 

2,005,760

 

Subtotal legal reserve

 

 

8,370,071

 

 

 

6,599,352

 

Non-mandatory reserve

 

 

 

 

 

 

Overnight deposits in BCRP (**)

 

 

929,500

 

 

 

622,170

 

Term deposits in BCRP (***)

 

 

883,700

 

 

 

 

Cash and clearing

 

 

216,982

 

 

 

243,029

 

Subtotal non-mandatory reserve

 

 

2,030,182

 

 

 

865,199

 

Cash balances not subject to legal reserve

 

 

57

 

 

 

56

 

Total

 

 

10,400,310

 

 

 

7,464,607

 

 

(*) The legal reserve funds maintained in the BCRP are non-interest bearing, except for the part that exceeds the minimum reserve required that accrued interest at a nominal annual rate, established by the BCRP. Starting in February 2022, the rate used is the Secured Overnight Financing Rate (“SOFR”). As of March 31, 2024 and December 31, 2023, the Group presented excess in foreign currency that accrued interest in US Dollars at an annual average rate of 4.83 and 4.86 percent, respectively.

In Group Management’s opinion, Interbank has complied with the requirements established by the rules in force related to the computation of the legal reserve.

 

(**) As of March 31, 2024, corresponds to an overnight deposit in foreign currency for US$250,000,000 (approximately equivalent to S/929,500,000), with maturity at the beginning of April 2024, which accrued interest an annual interest rate of 5.34 percent (as of December 31, 2023, it corresponded to an overnight deposit in foreign currency for US$130,000,000 (approximately equivalent to S/482,170,000) and an overnight deposit in local currency for S/140,000,000, with maturity in the first days of January 2024, which accrued interest an annual interest rate of 5.33 and 4.0 percent, respectively).

12


 

 

(***) As of March 31, 2024, corresponds to an overnight deposit in local currency, with maturity in the first days of January 2024, and accrued interest an annual interest rate of 6.22 percent.

 

(c) Deposits in domestic banks and abroad are mainly in Soles and US Dollars, they are freely available and accrue interest at market rates.

 

(d) The Group maintains restricted funds related to:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Inter-bank transfers (*)

 

 

875,505

 

 

 

694,118

 

Derivative financial instruments, Note 8(b)

 

 

33,828

 

 

 

24,725

 

Others

 

 

1,409

 

 

 

1,848

 

Total

 

 

910,742

 

 

 

720,691

 

 

(*) Corresponds to funds held at BCRP to guarantee transfers made through the Electronic Clearing House ("CCE", by its Spanish acronym).

 

(e) Inter-bank funds -

These are loans made between financial institutions with maturity, in general, minor than 30 days. As of March 31, 2024, Inter-bank funds assets accrue interest at an annual rate of 6.25 percent in local currency and 5.50 percent in foreign currency and Inter-bank funds liabilities accrue interest at an annual rate of 6.25 percent in local currency and 5.40 in foreign currency (annual rate of 6.75 percent in local currency and 5.50 percent in foreign currency for Inter-bank funds assets and liabilities as of December 31, 2023); and do not have specific guarantees.

 

5. Financial investments

(a) This caption is made up as follows:

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

 

 

 

 

 

 

 

Debt instruments measured at fair value through other comprehensive income (b) and (c)

 

 

20,329,541

 

 

 

20,912,184

 

Investments at amortized cost (d)

 

 

3,878,961

 

 

 

3,383,014

 

Investments at fair value through profit or loss (e)

 

 

1,616,625

 

 

 

1,556,540

 

Equity instruments measured at fair value through other comprehensive income (f)

 

 

437,324

 

 

 

444,878

 

Total financial investments

 

 

26,262,451

 

 

 

26,296,616

 

Accrued income

 

 

 

 

 

 

Debt instruments measured at fair value through other comprehensive income (b)

 

 

211,949

 

 

 

334,385

 

Investments at amortized cost (d)

 

 

41,499

 

 

 

90,990

 

Total

 

 

26,515,899

 

 

 

26,721,991

 

 

 

13


 

(b) Following is the detail of debt instruments measured at fair value through other comprehensive income:

 

 

 

 

 

 

Unrealized gross amount

 

 

 

 

 

 

 

Annual effective interest rates

 

 

 

Amortized

 

 

 

 

 

 

 

 

Estimated

 

 

 

 

S/

 

 

US$

 

 

 

cost

 

 

Gains

 

 

Losses (c)

 

 

fair value

 

 

Maturity

 

Min

 

 

Max

 

 

Min

 

 

Max

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

 

 

%

 

 

%

 

 

%

 

 

%

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate, leasing and subordinated bonds (*)

 

 

9,523,688

 

 

 

38,543

 

 

 

(928,134

)

 

 

8,634,097

 

 

Aug-24 / Feb-97

 

 

2.73

 

 

 

14.29

 

 

 

5.59

 

 

 

14.00

 

Sovereign Bonds of the Republic of Peru

 

 

8,287,764

 

 

 

401

 

 

 

(764,045

)

 

 

7,524,120

 

 

Aug-24 / Feb-55

 

 

0.83

 

 

 

7.47

 

 

 

5.65

 

 

 

5.65

 

Negotiable Certificates of Deposit issued by the Central Reserve Bank of Peru

 

 

3,185,134

 

 

 

72

 

 

 

(1,616

)

 

 

3,183,590

 

 

Apr-24 / Sep-24

 

 

5.59

 

 

 

6.21

 

 

 

 

 

 

 

Global Bonds of the Republic of Peru

 

 

496,444

 

 

 

 

 

 

(35,350

)

 

 

461,094

 

 

Jul-25 / Dec-32

 

 

 

 

 

 

 

 

5.14

 

 

 

5.48

 

Bonds guaranteed by the Peruvian Government

 

 

464,145

 

 

 

1,533

 

 

 

(8,585

)

 

 

457,093

 

 

Oct-24 / Oct-33

 

 

3.43

 

 

 

5.26

 

 

 

6.69

 

 

 

7.92

 

Treasury Bonds of the United States of America

 

 

57,648

 

 

 

7

 

 

 

(3,563

)

 

 

54,092

 

 

Apr-24 / Feb-32

 

 

 

 

 

 

 

 

4.19

 

 

 

5.00

 

Global Bonds of the United States of Mexico

 

 

17,829

 

 

 

 

 

 

(2,374

)

 

 

15,455

 

 

Feb-34

 

 

 

 

 

 

 

 

5.78

 

 

 

5.78

 

Total

 

 

22,032,652

 

 

 

40,556

 

 

 

(1,743,667

)

 

 

20,329,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest

 

 

 

 

 

 

 

 

 

 

 

211,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

20,541,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gross amount

 

 

 

 

 

 

 

Annual effective interest rates

 

 

 

Amortized

 

 

 

 

 

 

 

 

Estimated

 

 

 

 

S/

 

 

US$

 

 

 

cost

 

 

Gains

 

 

Losses (c)

 

 

fair value

 

 

Maturity

 

Min

 

 

Max

 

 

Min

 

 

Max

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

 

 

%

 

 

%

 

 

%

 

 

%

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate, leasing and subordinated bonds (*)

 

 

9,443,384

 

 

 

83,511

 

 

 

(865,654

)

 

 

8,661,241

 

 

Jan-24 / Feb-97

 

 

2.22

 

 

 

14.52

 

 

 

4.00

 

 

 

18.00

 

Sovereign Bonds of the Republic of Peru

 

 

8,320,671

 

 

 

13,599

 

 

 

(558,282

)

 

 

7,775,988

 

 

Aug-24 / Feb-55

 

 

0.95

 

 

 

6.82

 

 

 

 

 

 

 

Negotiable Certificates of Deposit issued by the Central Reserve Bank of Peru

 

 

3,445,361

 

 

 

3,638

 

 

 

(15

)

 

 

3,448,984

 

 

Jan-24 / Sep-24

 

 

5.60

 

 

 

6.66

 

 

 

 

 

 

 

Bonds guaranteed by the Peruvian Government

 

 

475,542

 

 

 

7,810

 

 

 

(9,722

)

 

 

473,630

 

 

Oct-24 / Oct-33

 

 

2.81

 

 

 

4.65

 

 

 

7.39

 

 

 

7.92

 

Global Bonds of the Republic of Peru

 

 

498,897

 

 

 

 

 

 

(35,564

)

 

 

463,333

 

 

Jul-25 / Dec-32

 

 

 

 

 

 

 

 

4.76

 

 

 

5.23

 

Treasury Bonds of the United States of America

 

 

76,556

 

 

 

26

 

 

 

(3,252

)

 

 

73,330

 

 

Jan-24 / Feb-32

 

 

 

 

 

 

 

 

3.87

 

 

 

5.00

 

Global Bonds of the United States of Mexico

 

 

17,769

 

 

 

 

 

 

(2,091

)

 

 

15,678

 

 

Feb-34

 

 

 

 

 

 

 

 

5.51

 

 

 

5.51

 

Total

 

 

22,278,180

 

 

 

108,584

 

 

 

(1,474,580

)

 

 

20,912,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest

 

 

 

 

 

 

 

 

 

 

 

334,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

21,246,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*) As of March 31, 2024 and December 31, 2023, Inteligo holds corporate bonds from several entities for approximately S/76,387,000 and S/101,215,000, respectively, which guarantee loans received.

 

 

 

 

 

 

 

14


 

(c) The Group, according to the business model applied to these debt instruments, has the capacity to hold these investments for a sufficient period that allows the early recovery of the fair value, up to the maximum period for the early recovery or the due date.

 

Following is the movement of the provision for expected credit loss for these debt instruments, measured at fair value through other comprehensive income:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Expected credit loss at the beginning of the period

 

 

61,046

 

 

 

53,974

 

 

 

53,974

 

New assets originated or purchased

 

 

291

 

 

 

1,689

 

 

 

524

 

Assets derecognized or matured (excluding write-offs)

 

 

(2,975

)

 

 

(993

)

 

 

(267

)

Effect on the expected credit loss due to the change of the stage during the year

 

 

2,096

 

 

 

(589

)

 

 

261

 

Loss for impairment

 

 

41,723

 

 

 

9,440

 

 

 

9,699

 

Others

 

 

(2,336

)

 

 

(2,059

)

 

 

2,960

 

Period movement

 

 

38,799

 

 

 

7,488

 

 

 

13,177

 

Effect of foreign exchange variation

 

 

33

 

 

 

(416

)

 

 

(302

)

Expected credit loss at the end of the period

 

 

99,878

 

 

 

61,046

 

 

 

66,849

 

 

(d) As of March 31, 2024, investments at amortized cost correspond mainly to Sovereign Bonds of the Republic of Peru issued in Soles for an amount of S/3,645,951,000, including accrued interest for an amount of S/30,976,000 (as of December 31, 2023, corresponds to Sovereign Bonds of the Republic of Peru issued in Soles for an amount of S/3,393,962,000, including accrued interest for an amount of S/86,652,000). Said investments present low credit risk and the impairment loss is not significant.

As of March 31, 2024, these investments have maturity dates that range from August 2024 to August 2037, have accrued interest at effective annual rates between 4.36 percent and 7.46 percent, and estimated fair value amounting to approximately S/3,447,740,000 (as of December 31, 2023, their maturity dates ranged from August 2024 to August 2037, have accrued interest at effective annual rates between 4.36 percent and 7.50 percent, and estimated fair value amounting to approximately S/3,277,672,000).

 

Additionally, as of March 31, 2024, term deposits mainly issued in Soles are held, for an amount of S/274,509,000, included accrued interest amounting to S/10,523,000 (as of December 31, 2023, term deposits mainly issued in Soles are held, for an amount of S/80,042,000, included accrued interest amounting to S/4,338,000). Said investments present low credit risk and the impairment loss is not material. As of March 31, 2024, the maturity of these investments fluctuates between July 2024 and February 2029, have accrued interest at an annual effective rate between 2.00 percent and 8.80 percent, and their estimated fair value amounts to approximately S/274,509,000 (as of December 31, 2023, the maturity of these investments fluctuates between April 2024 and February 2029, accrued interest at an annual effective rate between 3.10 percent and 8.80 percent, and their estimated fair value amounted to approximately S/80,042,000).

 

As of March 31, 2024 and December 31, 2023, Interbank holds loans with the BCRP that are guaranteed with these sovereign bonds, classified as restricted, for approximately S/1,773,276,000 and S/2,058,931,000, respectively; see Note 10(a).

 

As of March 31, 2024 and December 31, 2023, Interbank holds loans with foreign banks that are guaranteed with these sovereign bonds, classified as restricted, for approximately S/434,936,000 and S/445,909,000, respectively, see Note 10(a).

 

15


 

(e) The composition of financial instruments at fair value through profit or loss is as follows:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Equity instruments

 

 

 

 

 

 

Local and foreign mutual funds and investment funds participations

 

 

1,191,970

 

 

 

1,169,491

 

Listed shares

 

 

230,220

 

 

 

253,203

 

Non-listed shares

 

 

125,155

 

 

 

122,482

 

Debt instruments

 

 

 

 

 

 

Adjustable Certificates of Deposit issued by the BCRP

 

 

43,667

 

 

 

 

Corporate, leasing and subordinated bonds

 

 

23,544

 

 

 

5,289

 

Negotiable Certificates of Deposits

 

 

2,069

 

 

 

6,075

 

Total

 

 

1,616,625

 

 

 

1,556,540

 

 

As of March 31, 2024 and December 31, 2023, investments at fair value through profit or loss include investments held for trading for approximately S/246,909,000 and S/194,033,000, respectively; and those assets that are necessarily measured at fair value through profit or loss for approximately S/1,369,716,000 and S/1,362,507,000, respectively.

 

(f) The composition of equity instruments measured at fair value through other comprehensive income is as follow:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Listed shares (g)

 

 

398,301

 

 

 

407,636

 

Non-listed shares

 

 

39,023

 

 

 

37,242

 

Total

 

 

437,324

 

 

 

444,878

 

 

As of March 31, 2024 and December 31, 2023, it corresponds to investments in shares in the biological sciences, distribution of machinery, energy, telecommunications, financial and massive consumption sectors that are listed on the domestic and foreign markets.

 

16


 

 

(g) Below are the debt instruments measured at fair value through other comprehensive income and at amortized cost, classified by stages, according to the definition by IFRS 9 as of March 31, 2024 and December 31, 2023:

 

 

 

31.03.2024

 

Debt instruments measured at fair value through other comprehensive income and at amortized cost

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Sovereign Bonds of the Republic of Peru

 

 

11,139,095

 

 

 

 

 

 

 

 

 

11,139,095

 

Corporate, leasing and subordinated bonds

 

 

7,813,133

 

 

 

819,075

 

 

 

1,889

 

 

 

8,634,097

 

Negotiable Certificates of Deposit issued by the BCRP

 

 

3,183,590

 

 

 

 

 

 

 

 

 

3,183,590

 

Global Bonds of the Republic of Peru

 

 

461,094

 

 

 

 

 

 

 

 

 

461,094

 

Bonds guaranteed by the Peruvian government

 

 

457,093

 

 

 

 

 

 

 

 

 

457,093

 

Treasury Bonds of the United States of America

 

 

54,092

 

 

 

 

 

 

 

 

 

54,092

 

Global Bonds of the United States of Mexico

 

 

15,455

 

 

 

 

 

 

 

 

 

15,455

 

Others

 

 

263,986

 

 

 

 

 

 

 

 

 

263,986

 

Total

 

 

23,387,538

 

 

 

819,075

 

 

 

1,889

 

 

 

24,208,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31.12.2023

 

Debt instruments measured at fair value through other comprehensive income and at amortized cost

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Sovereign Bonds of the Republic of Peru

 

 

11,083,297

 

 

 

 

 

 

 

 

 

11,083,297

 

Corporate, leasing and subordinated bonds

 

 

7,909,365

 

 

 

750,179

 

 

 

1,697

 

 

 

8,661,241

 

Negotiable Certificates of Deposit issued by the BCRP

 

 

3,448,984

 

 

 

 

 

 

 

 

 

3,448,984

 

Bonds guaranteed by the Peruvian government

 

 

473,630

 

 

 

 

 

 

 

 

 

473,630

 

Global Bonds of the Republic of Peru

 

 

463,333

 

 

 

 

 

 

 

 

 

463,333

 

Treasury Bonds of the United States of America

 

 

73,330

 

 

 

 

 

 

 

 

 

73,330

 

Global Bonds of the United States of Mexico

 

 

15,678

 

 

 

 

 

 

 

 

 

15,678

 

Others

 

 

75,705

 

 

 

 

 

 

 

 

 

75,705

 

Total

 

 

23,543,322

 

 

 

750,179

 

 

 

1,697

 

 

 

24,295,198

 

 

17


 

6. Loans, net

(a) This caption is made up as follows:

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Direct loans

 

 

 

 

 

 

Loans (*)

 

 

35,856,510

 

 

 

35,789,130

 

Credit cards and other loans (**)

 

 

5,663,365

 

 

 

6,023,769

 

Discounted notes

 

 

1,239,049

 

 

 

1,567,411

 

Leasing

 

 

1,487,347

 

 

 

1,495,290

 

Factoring

 

 

1,091,516

 

 

 

1,244,795

 

Advances and overdrafts

 

 

65,107

 

 

 

14,617

 

Refinanced loans

 

 

471,489

 

 

 

461,995

 

Past due and under legal collection loans

 

 

1,695,708

 

 

 

1,652,151

 

 

 

 

47,570,091

 

 

 

48,249,158

 

Plus (minus)

 

 

 

 

 

 

Accrued interest from performing loans

 

 

681,107

 

 

 

657,355

 

Unearned interest and interest collected in advance

 

 

(33,046

)

 

 

(36,706

)

Impairment allowance for loans (d)

 

 

(2,222,708

)

 

 

(2,349,425

)

Total direct loans, net

 

 

45,995,444

 

 

 

46,520,382

 

Indirect loans

 

 

4,422,795

 

 

 

4,743,480

 

 

(*) As of March 31, 2024 and December 31, 2023, Interbank maintains repo operations of loans represented in securities according to the BCRP’s definition. In consequence, loans provided as guarantee amounts to S/413,820,000 and S/504,158,000, respectively, and is presented in the caption “Loan, net”, and the related liability is presented in the caption “Due to banks and correspondents” of the interim consolidated statement of financial position; see Note 10(b).

 

(**) As of March 31, 2024 and December 31, 2023, it includes non-revolving consumer loans related to credit card lines for approximately S/2,983,706,000 and S/3,149,149,000, respectively.

 

(b) The classification of the direct loan portfolio is as follows:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Commercial loans (c.1)

 

 

20,720,575

 

 

 

21,155,476

 

Consumer loans (c.1)

 

 

15,936,596

 

 

 

16,325,460

 

Mortgage loans (c.1)

 

 

9,986,476

 

 

 

9,834,398

 

Small and micro-business loans (c.1)

 

 

926,444

 

 

 

933,824

 

Total

 

 

47,570,091

 

 

 

48,249,158

 

 

For purposes of estimating the impairment loss in accordance with IFRS 9, the Group's loans are segmented into homogeneous groups that share similar risk characteristic. In this sense, the Group has determined three types of loan portfolios: Retail Banking (consumer and mortgage loans), Commercial Banking (commercial loans) and Small Business Banking (loans to small and micro-business).

 

 

 

18


 

(c) The following table shows the credit quality and maximum exposure to credit risk based on the Group's internal credit rating as of March 31, 2024 and December 31, 2023. The amounts presented do not consider impairment.

 

 

 

31.03.2024

 

 

31.12.2023

 

Direct loans, (c.1)

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High grade

 

 

34,018,051

 

 

 

1,587,418

 

 

 

 

 

 

35,605,469

 

 

 

35,098,364

 

 

 

1,068,674

 

 

 

 

 

 

36,167,038

 

Standard grade

 

 

2,869,215

 

 

 

701,621

 

 

 

 

 

 

3,570,836

 

 

 

2,832,251

 

 

 

1,510,897

 

 

 

 

 

 

4,343,148

 

Sub-standard grade

 

 

1,268,031

 

 

 

1,368,799

 

 

 

 

 

 

2,636,830

 

 

 

1,367,503

 

 

 

1,450,751

 

 

 

 

 

 

2,818,254

 

Past due but not impaired

 

 

2,378,670

 

 

 

1,781,833

 

 

 

 

 

 

4,160,503

 

 

 

1,949,892

 

 

 

1,460,138

 

 

 

 

 

 

3,410,030

 

Impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

 

 

 

 

 

 

45,392

 

 

 

45,392

 

 

 

 

 

 

 

 

 

36,257

 

 

 

36,257

 

Collectively

 

 

 

 

 

 

 

 

1,551,061

 

 

 

1,551,061

 

 

 

 

 

 

 

 

 

1,474,431

 

 

 

1,474,431

 

Total direct loans

 

 

40,533,967

 

 

 

5,439,671

 

 

 

1,596,453

 

 

 

47,570,091

 

 

 

41,248,010

 

 

 

5,490,460

 

 

 

1,510,688

 

 

 

48,249,158

 

 

 

 

31.03.2024

 

 

31.12.2023

 

Contingent Credits: Guarantees and stand by letters, import and export letters of credit (substantially, all indirect loans correspond to commercial loans)

 

Stage 1
S/(000)

 

 

Stage 2
S/(000)

 

 

Stage 3
S/(000)

 

 

Total
S/(000)

 

 

Stage 1
S/(000)

 

 

Stage 2
S/(000)

 

 

Stage 3
S/(000)

 

 

Total
S/(000)

 

Not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High grade

 

 

3,917,881

 

 

 

400,037

 

 

 

 

 

 

4,317,918

 

 

 

3,988,999

 

 

 

457,518

 

 

 

 

 

 

4,446,517

 

Standard grade

 

 

24,541

 

 

 

24,405

 

 

 

 

 

 

48,946

 

 

 

32,433

 

 

 

214,806

 

 

 

 

 

 

247,239

 

Sub-standard grade

 

 

2,085

 

 

 

36,665

 

 

 

 

 

 

38,750

 

 

 

2,823

 

 

 

31,101

 

 

 

 

 

 

33,924

 

Past due but not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

 

 

 

 

 

 

6,181

 

 

 

6,181

 

 

 

 

 

 

 

 

 

6,181

 

 

 

6,181

 

Collectively

 

 

 

 

 

 

 

 

11,000

 

 

 

11,000

 

 

 

 

 

 

 

 

 

9,619

 

 

 

9,619

 

Total indirect loans

 

 

3,944,507

 

 

 

461,107

 

 

 

17,181

 

 

 

4,422,795

 

 

 

4,024,255

 

 

 

703,425

 

 

 

15,800

 

 

 

4,743,480

 

 

19


 

 

(c.1) The following tables show the credit quality and maximum exposure to credit risk for each classification of the direct loans:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

Commercial loans

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High grade

 

 

14,073,361

 

 

 

1,358,482

 

 

 

 

 

 

15,431,843

 

 

 

14,979,356

 

 

 

855,890

 

 

 

 

 

 

15,835,246

 

Standard grade

 

 

1,447,550

 

 

 

304,974

 

 

 

 

 

 

1,752,524

 

 

 

1,347,961

 

 

 

1,013,803

 

 

 

 

 

 

2,361,764

 

Sub-standard grade

 

 

350,302

 

 

 

205,896

 

 

 

 

 

 

556,198

 

 

 

450,577

 

 

 

314,063

 

 

 

 

 

 

764,640

 

Past due but not impaired

 

 

1,857,076

 

 

 

677,304

 

 

 

 

 

 

2,534,380

 

 

 

1,431,064

 

 

 

364,603

 

 

 

 

 

 

1,795,667

 

Impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

 

 

 

 

 

 

45,392

 

 

 

45,392

 

 

 

 

 

 

 

 

 

36,257

 

 

 

36,257

 

Collectively

 

 

 

 

 

 

 

 

400,238

 

 

 

400,238

 

 

 

 

 

 

 

 

 

361,902

 

 

 

361,902

 

Total direct loans

 

 

17,728,289

 

 

 

2,546,656

 

 

 

445,630

 

 

 

20,720,575

 

 

 

18,208,958

 

 

 

2,548,359

 

 

 

398,159

 

 

 

21,155,476

 

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

Consumer loans

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High grade

 

 

11,207,265

 

 

 

170,476

 

 

 

 

 

 

11,377,741

 

 

 

11,475,514

 

 

 

199,501

 

 

 

 

 

 

11,675,015

 

Standard grade

 

 

914,332

 

 

 

356,078

 

 

 

 

 

 

1,270,410

 

 

 

945,060

 

 

 

452,811

 

 

 

 

 

 

1,397,871

 

Sub-standard grade

 

 

705,299

 

 

 

748,178

 

 

 

 

 

 

1,453,477

 

 

 

717,526

 

 

 

755,121

 

 

 

 

 

 

1,472,647

 

Past due but not impaired

 

 

260,371

 

 

 

819,296

 

 

 

 

 

 

1,079,667

 

 

 

217,712

 

 

 

829,119

 

 

 

 

 

 

1,046,831

 

Impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively

 

 

 

 

 

 

 

 

755,301

 

 

 

755,301

 

 

 

 

 

 

 

 

 

733,096

 

 

 

733,096

 

Total direct loans

 

 

13,087,267

 

 

 

2,094,028

 

 

 

755,301

 

 

 

15,936,596

 

 

 

13,355,812

 

 

 

2,236,552

 

 

 

733,096

 

 

 

16,325,460

 

 

 

 

20


 

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

Mortgage loans

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High grade

 

 

8,188,126

 

 

 

16,645

 

 

 

 

 

 

8,204,771

 

 

 

8,093,031

 

 

 

13,283

 

 

 

 

 

 

8,106,314

 

Standard grade

 

 

431,754

 

 

 

21,635

 

 

 

 

 

 

453,389

 

 

 

433,968

 

 

 

17,124

 

 

 

 

 

 

451,092

 

Sub-standard grade

 

 

207,305

 

 

 

381,913

 

 

 

 

 

 

589,218

 

 

 

193,340

 

 

 

348,274

 

 

 

 

 

 

541,614

 

Past due but not impaired

 

 

226,250

 

 

 

226,699

 

 

 

 

 

 

452,949

 

 

 

261,100

 

 

 

200,873

 

 

 

 

 

 

461,973

 

Impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively

 

 

 

 

 

 

 

 

286,149

 

 

 

286,149

 

 

 

 

 

 

 

 

 

273,405

 

 

 

273,405

 

Total direct loans

 

 

9,053,435

 

 

 

646,892

 

 

 

286,149

 

 

 

9,986,476

 

 

 

8,981,439

 

 

 

579,554

 

 

 

273,405

 

 

 

9,834,398

 

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

Small and micro-business loans

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Not impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High grade

 

 

549,299

 

 

 

41,815

 

 

 

 

 

 

591,114

 

 

 

550,463

 

 

 

 

 

 

 

 

 

550,463

 

Standard grade

 

 

75,579

 

 

 

18,934

 

 

 

 

 

 

94,513

 

 

 

105,262

 

 

 

27,159

 

 

 

 

 

 

132,421

 

Sub-standard grade

 

 

5,125

 

 

 

32,812

 

 

 

 

 

 

37,937

 

 

 

6,060

 

 

 

33,293

 

 

 

 

 

 

39,353

 

Past due but not impaired

 

 

34,973

 

 

 

58,534

 

 

 

 

 

 

93,507

 

 

 

40,016

 

 

 

65,543

 

 

 

 

 

 

105,559

 

Impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collectively

 

 

 

 

 

 

 

 

109,373

 

 

 

109,373

 

 

 

 

 

 

 

 

 

106,028

 

 

 

106,028

 

Total direct loans

 

 

664,976

 

 

 

152,095

 

 

 

109,373

 

 

 

926,444

 

 

 

701,801

 

 

 

125,995

 

 

 

106,028

 

 

 

933,824

 

 

 

 

 

 

 

 

 

 

21


 

(d) The balances of the direct and indirect loan portfolio and the movement of the respective allowance for expected credit loss, calculated according to IFRS 9, is as follows:

 

(d.1) Direct loans

 

 

 

31.03.2024

 

31.03.2023

 

31.12.2023

Changes in the allowance for expected credit losses for direct loans, see (d.1.1)

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Total

 

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Expected credit loss at beginning of year balances

 

545,242

 

833,912

 

970,271

 

2,349,425

 

608,558

 

737,286

 

682,011

 

2,027,855

 

2,027,855

Impact of the expected credit loss in the consolidated statement of income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    New originated or purchased assets

 

90,409

 

 

 

90,409

 

109,637

 

 

 

109,637

 

624,484

    Assets matured or derecognized (excluding write-offs)

 

(37,146)

 

(18,300)

 

(10,000)

 

(65,446)

 

(35,702)

 

(17,249)

 

(7,857)

 

(60,808)

 

(238,860)

    Transfers to Stage 1

 

98,431

 

(97,024)

 

(1,407)

 

 

86,564

 

(82,958)

 

(3,606)

 

 

    Transfers to Stage 2

 

(76,118)

 

84,368

 

(8,250)

 

 

(75,400)

 

89,200

 

(13,800)

 

 

    Transfers to Stage 3

 

(6,542)

 

(222,457)

 

228,999

 

 

(4,835)

 

(118,369)

 

123,204

 

 

    Impact on the expected credit loss for credits that change stage in the period (*)

 

(75,752)

 

194,465

 

423,620

 

542,333

 

(63,991)

 

201,263

 

210,009

 

347,281

 

1,575,906

    Others (**)

 

(71,959)

 

(25,699)

 

82,348

 

(15,310)

 

(62,468)

 

(41,125)

 

75,807

 

(27,786)

 

37,701

Total

 

(78,677)

 

(84,647)

 

715,310

 

551,986

 

(46,195)

 

30,762

 

383,757

 

368,324

 

1,999,231

Write-offs

 

 

 

(713,098)

 

(713,098)

 

 

 

(328,024)

 

(328,024)

 

(1,813,670)

Recovery of written–off loans

 

 

 

33,895

 

33,895

 

 

 

32,451

 

32,451

 

138,886

Foreign exchange effect

 

64

 

94

 

342

 

500

 

(198)

 

(164)

 

(1,383)

 

(1,745)

 

(2,877)

Expected credit loss at the end of period

 

466,629

 

749,359

 

1,006,720

 

2,222,708

 

562,165

 

767,884

 

768,812

 

2,098,861

 

2,349,425

 

(*) During 2024 and 2023, the Group applied expert judgement with the purpose of reflecting the effects of the possible impact of the El Niño event and the political and economic uncertainty, respectively, that were not considered in the forward-looking model.

(**) Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or derecognized of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt).

 

 

 

 

 

 

 

 

 

22


 

(d.1.1) The following tables show the movement of the allowance for expected credit losses for each classification of the direct loan portfolio:

 

 

 

31.03.2024

 

31.03.2023

 

31.12.2023

Commercial loans

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Total

 

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Expected credit loss at beginning of year

 

51,611

 

64,470

 

162,385

 

278,466

 

45,474

 

47,311

 

154,299

 

247,084

 

247,084

Impact of the expected credit loss in the consolidated statement of income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    New originated or purchased assets

 

22,483

 

 

 

22,483

 

15,566

 

 

 

15,566

 

47,129

    Assets derecognized or matured (excluding write-offs)

 

(13,778)

 

(7,173)

 

(1,046)

 

(21,997)

 

(9,708)

 

(3,421)

 

(350)

 

(13,479)

 

(39,705)

    Transfers to Stage 1

 

6,509

 

(6,509)

 

 

 

4,293

 

(3,119)

 

(1,174)

 

 

    Transfers to Stage 2

 

(11,096)

 

12,384

 

(1,288)

 

 

(9,756)

 

12,527

 

(2,771)

 

 

    Transfers to Stage 3

 

(140)

 

(7,751)

 

7,891

 

 

(1,529)

 

(9,799)

 

11,328

 

 

    Impact on the expected credit loss for credits that change stage in the period (*)

 

(4,662)

 

5,202

 

18,113

 

18,653

 

(2,653)

 

4,206

 

26,638

 

28,191

 

46,093

    Others (**)

 

(6,956)

 

(1,135)

 

(4,632)

 

(12,723)

 

923

 

2,217

 

(17,421)

 

(14,281)

 

37,739

Total

 

(7,640)

 

(4,982)

 

19,038

 

6,416

 

(2,864)

 

2,611

 

16,250

 

15,997

 

91,256

Write-offs

 

 

 

(8,480)

 

(8,480)

 

 

 

(13,551)

 

(13,551)

 

(62,960)

Recovery of written–off loans

 

 

 

1,098

 

1,098

 

 

 

1,462

 

1,462

 

5,189

Foreign exchange effect

 

62

 

54

 

233

 

349

 

(190)

 

(103)

 

(946)

 

(1,239)

 

(2,103)

Expected credit loss at the end of period

 

44,033

 

59,542

 

174,274

 

277,849

 

42,420

 

49,819

 

157,514

 

249,753

 

278,466

 

(*) Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or derecognized of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt).

(**) During 2024 and 2023, the Group applied expert judgement with the purpose of reflecting the effects of the possible impact of the El Niño event and the political and economic uncertainty, respectively, that were not considered in the forward-looking model.

 

23


 

 

 

31.03.2024

 

31.03.2023

 

31.12.2023

Consumer loans

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Total

 

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Expected credit loss at beginning of year

 

466,606

 

713,361

 

682,417

 

1,862,384

 

534,005

 

657,474

 

430,902

 

1,622,381

 

1,622,381

Impact of the expected credit loss in the consolidated statement of income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    New originated or purchased assets

 

60,405

 

 

 

60,405

 

88,163

 

 

 

88,163

 

552,847

    Assets derecognized or matured (excluding write-offs)

 

(21,869)

 

(9,930)

 

(3,645)

 

(35,444)

 

(24,264)

 

(13,500)

 

(5,141)

 

(42,905)

 

(163,883)

    Transfers to Stage 1

 

81,828

 

(80,571)

 

(1,257)

 

 

76,110

 

(74,764)

 

(1,346)

 

 

    Transfers to Stage 2

 

(57,608)

 

61,169

 

(3,561)

 

 

(59,125)

 

66,132

 

(7,007)

 

 

    Transfers to Stage 3

 

(5,714)

 

(198,479)

 

204,193

 

 

(1,638)

 

(95,495)

 

97,133

 

 

    Impact on the expected credit loss for credits that change stage in the period (*)

 

(62,590)

 

172,026

 

374,435

 

483,871

 

(56,604)

 

187,349

 

145,106

 

275,851

 

1,403,885

    Others (**)

 

(62,446)

 

(25,736)

 

89,916

 

1,734

 

(63,634)

 

(46,142)

 

117,936

 

8,160

 

(28,733)

Total

 

(67,994)

 

(81,521)

 

660,081

 

510,566

 

(40,992)

 

23,580

 

346,681

 

329,269

 

1,764,116

Write-offs

 

 

 

(666,614)

 

(666,614)

 

 

 

(300,131)

 

(300,131)

 

(1,647,576)

Recovery of written–off loans

 

 

 

30,576

 

30,576

 

 

 

28,933

 

28,933

 

123,679

Foreign exchange effect

 

 

37

 

47

 

84

 

 

(46)

 

(118)

 

(164)

 

(216)

Expected credit loss at the end of period

 

398,612

 

631,877

 

706,507

 

1,736,996

 

493,013

 

681,008

 

506,267

 

1,680,288

 

1,862,384

 

(*) Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or derecognized of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt).

(**) During 2024 and 2023, the Group applied expert judgement with the purpose of reflecting the effects of the possible impact of the El Niño event and the political and economic uncertainty, respectively, that were not considered in the forward-looking model.

 

24


 

 

 

31.03.2024

 

 

31.03.2023

 

 

31.12.2023

 

Mortgage loans

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Expected credit loss at beginning of year

 

 

6,794

 

 

 

25,753

 

 

 

54,651

 

 

 

87,198

 

 

 

4,236

 

 

 

12,285

 

 

 

45,101

 

 

 

61,622

 

 

 

61,622

 

Impact of the expected credit loss in the consolidated statement of income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    New originated or purchased assets

 

 

1,091

 

 

 

 

 

 

 

 

 

1,091

 

 

 

198

 

 

 

 

 

 

 

 

 

198

 

 

 

3,949

 

    Assets derecognized or matured (excluding write-offs)

 

 

(94

)

 

 

(574

)

 

 

(3,209

)

 

 

(3,877

)

 

 

(33

)

 

 

(127

)

 

 

(1,942

)

 

 

(2,102

)

 

 

(11,639

)

    Transfers to Stage 1

 

 

6,267

 

 

 

(6,267

)

 

 

 

 

 

 

 

 

3,293

 

 

 

(3,293

)

 

 

 

 

 

 

 

 

 

    Transfers to Stage 2

 

 

(1,330

)

 

 

4,447

 

 

 

(3,117

)

 

 

 

 

 

(248

)

 

 

3,821

 

 

 

(3,573

)

 

 

 

 

 

 

    Transfers to Stage 3

 

 

(121

)

 

 

(1,738

)

 

 

1,859

 

 

 

 

 

 

(44

)

 

 

(1,302

)

 

 

1,346

 

 

 

 

 

 

 

    Impact on the expected credit loss for credits that change stage in the period (*)

 

 

(6,032

)

 

 

8,199

 

 

 

8,564

 

 

 

10,731

 

 

 

(3,124

)

 

 

3,362

 

 

 

6,567

 

 

 

6,805

 

 

 

31,022

 

    Others (**)

 

 

(488

)

 

 

(384

)

 

 

(698

)

 

 

(1,570

)

 

 

97

 

 

 

229

 

 

 

(499

)

 

 

(173

)

 

 

6,370

 

Total

 

 

(707

)

 

 

3,683

 

 

 

3,399

 

 

 

6,375

 

 

 

139

 

 

 

2,690

 

 

 

1,899

 

 

 

4,728

 

 

 

29,702

 

Write-offs

 

 

 

 

 

 

 

 

(360

)

 

 

(360

)

 

 

 

 

 

 

 

 

(344

)

 

 

(344

)

 

 

(3,580

)

Recovery of written–off loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange effect

 

 

2

 

 

 

3

 

 

 

60

 

 

 

65

 

 

 

(8

)

 

 

(14

)

 

 

(312

)

 

 

(334

)

 

 

(546

)

Expected credit loss at the end of period

 

 

6,089

 

 

 

29,439

 

 

 

57,750

 

 

 

93,278

 

 

 

4,367

 

 

 

14,961

 

 

 

46,344

 

 

 

65,672

 

 

 

87,198

 

 

(*) Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or derecognized of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt).

(**) During 2024 and 2023, the Group applied expert judgement with the purpose of reflecting the effects of the possible impact of the El Niño event and the political and economic uncertainty, respectively, that were not considered in the forward-looking model.

 

25


 

 

 

31.03.2024

 

31.03.2023

 

31.12.2023

Small and micro-business loans

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Stage 1

 

Stage 2

 

Stage 3

 

Total

 

Total

 

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Expected credit loss at beginning of year

 

20,231

 

30,328

 

70,818

 

121,377

 

24,843

 

20,216

 

51,709

 

96,768

 

96,768

Impact of the expected credit loss in the consolidated statement of income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    New originated or purchased assets

 

6,430

 

 

 

6,430

 

5,710

 

 

 

5,710

 

20,559

    Assets derecognized or matured (excluding write-offs)

 

(1,405)

 

(623)

 

(2,100)

 

(4,128)

 

(1,697)

 

(201)

 

(424)

 

(2,322)

 

(23,633)

    Transfers to Stage 1

 

3,827

 

(3,677)

 

(150)

 

 

2,868

 

(1,782)

 

(1,086)

 

 

    Transfers to Stage 2

 

(6,084)

 

6,368

 

(284)

 

 

(6,271)

 

6,720

 

(449)

 

 

    Transfers to Stage 3

 

(567)

 

(14,489)

 

15,056

 

 

(1,624)

 

(11,773)

 

13,397

 

 

    Impact on the expected credit loss for credits that change stage in the period (*)

 

(2,468)

 

9,038

 

22,508

 

29,078

 

(1,610)

 

6,346

 

31,698

 

36,434

 

94,906

    Others (**)

 

(2,069)

 

1,556

 

(2,238)

 

(2,751)

 

146

 

2,571

 

(24,209)

 

(21,492)

 

22,325

Total

 

(2,336)

 

(1,827)

 

32,792

 

28,629

 

(2,478)

 

1,881

 

18,927

 

18,330

 

114,157

Write-offs

 

 

 

(37,644)

 

(37,644)

 

 

 

(13,998)

 

(13,998)

 

(99,554)

Recovery of written–off loans

 

 

 

2,221

 

2,221

 

 

 

2,056

 

2,056

 

10,018

Foreign exchange effect

 

 

 

2

 

2

 

 

(1)

 

(7)

 

(8)

 

(12)

Expected credit loss at the end of period

 

17,895

 

28,501

 

68,189

 

114,585

 

22,365

 

22,096

 

58,687

 

103,148

 

121,377

 

(*) Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or derecognized of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt).

(**) During 2024 and 2023, the Group applied expert judgement with the purpose of reflecting the effects of the possible impact of the El Niño event and the political and economic uncertainty, respectively, that were not considered in the forward-looking model.

 

26


 

(d.2) Indirect loans (substantially, all indirect loans correspond to commercial loans)

 

 

 

31.03.2024

 

 

31.03.2023

 

 

31.12.2023

 

Changes in the allowance for expected credit losses for indirect loans

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Stage 1

 

 

Stage 2

 

 

Stage 3

 

 

Total

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Expected credit loss at beginning of year balances

 

 

6,624

 

 

 

3,939

 

 

 

7,369

 

 

 

17,932

 

 

 

8,354

 

 

 

18,205

 

 

 

8,936

 

 

 

35,495

 

 

 

35,495

 

Impact of the expected credit loss in the consolidated statement of income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    New originated or purchased assets

 

 

1,166

 

 

 

 

 

 

 

 

 

1,166

 

 

 

1,059

 

 

 

 

 

 

 

 

 

1,059

 

 

 

4,770

 

    Assets derecognized or matured

 

 

(1,206

)

 

 

(440

)

 

 

(35

)

 

 

(1,681

)

 

 

(802

)

 

 

(779

)

 

 

(268

)

 

 

(1,849

)

 

 

(6,824

)

    Transfers to Stage 1

 

 

1,183

 

 

 

(1,183

)

 

 

 

 

 

 

 

 

216

 

 

 

(216

)

 

 

 

 

 

 

 

 

 

    Transfers to Stage 2

 

 

(397

)

 

 

397

 

 

 

 

 

 

 

 

 

(441

)

 

 

491

 

 

 

(50

)

 

 

 

 

 

 

    Transfers to Stage 3

 

 

 

 

 

(26

)

 

 

26

 

 

 

 

 

 

 

 

 

(18

)

 

 

18

 

 

 

 

 

 

 

    Impact on the expected credit loss for credits that change stage in the period

 

 

(874

)

 

 

86

 

 

 

149

 

 

 

(639

)

 

 

(113

)

 

 

93

 

 

 

271

 

 

 

251

 

 

 

(210

)

    Others (*)

 

 

(1,261

)

 

 

(651

)

 

 

21

 

 

 

(1,891

)

 

 

(142

)

 

 

(5

)

 

 

(27

)

 

 

(174

)

 

 

(15,149

)

Total

 

 

(1,389

)

 

 

(1,817

)

 

 

161

 

 

 

(3,045

)

 

 

(223

)

 

 

(434

)

 

 

(56

)

 

 

(713

)

 

 

(17,413

)

Foreign exchange effect

 

 

5

 

 

 

1

 

 

 

 

 

 

6

 

 

 

(69

)

 

 

(52

)

 

 

(2

)

 

 

(123

)

 

 

(150

)

Expected credit loss at the end of period, Note 8(a)

 

 

5,240

 

 

 

2,123

 

 

 

7,530

 

 

 

14,893

 

 

 

8,062

 

 

 

17,719

 

 

 

8,878

 

 

 

34,659

 

 

 

17,932

 

(*) Corresponds mainly to: (i) the variation between the amortized cost of the loan at the beginning of the year and its amortized cost at the end of the year (variation in the provision recorded for partial amortizations that did not represent a reduction or derecognized of the loan), (ii) variations in credit risk that did not generate transfers to other stages; and (iii) the execution of contingent loans (conversion of indirect debt into direct debt).

 

 

 

27


 

7. Investment property

(a) This caption is made up as follows:

 

 

31.03.2024

 

 

31.12.2023

 

 

Acquisition or construction year

 

Valuation methodology as of March 31, 2024 and December 31, 2023

 

 

S/(000)

 

 

S/(000)

 

 

 

 

 

Land (i)

 

 

 

 

 

 

 

 

 

 

San Isidro – Lima

 

 

270,370

 

 

 

269,194

 

 

2009

 

Appraisal

San Martín de Porres – Lima

 

 

78,135

 

 

 

77,970

 

 

2015

 

Appraisal

Nuevo Chimbote

 

 

35,525

 

 

 

34,724

 

 

2021

 

Appraisal

Santa Clara – Lima

 

 

27,295

 

 

 

27,229

 

 

2017

 

Appraisal

Sullana

 

 

23,809

 

 

 

23,751

 

 

2012

 

Appraisal

Others

 

 

9,001

 

 

 

8,987

 

 

-

 

Appraisal/Cost

 

 

444,135

 

 

 

441,855

 

 

 

 

 

Completed investment property -
“Real Plaza” shopping malls (i)

 

 

 

 

 

 

 

 

 

 

Talara

 

 

28,191

 

 

 

28,991

 

 

2015

 

DCF

 

 

28,191

 

 

 

28,991

 

 

 

 

 

Buildings (i)

 

 

 

 

 

 

 

 

 

 

Ate Vitarte – Lima

 

 

164,902

 

 

 

160,208

 

 

2006

 

DCF/Appraisal

Piura

 

 

135,199

 

 

 

131,144

 

 

2008/2020

 

DCF/Appraisal

Orquídeas - San Isidro – Lima

 

 

131,607

 

 

 

128,593

 

 

2017

 

DCF

Chorrillos – Lima

 

 

97,659

 

 

 

94,184

 

 

2017

 

DCF

Paseo del Bosque

 

 

88,780

 

 

 

87,168

 

 

2021

 

DCF

Chimbote

 

 

48,531

 

 

 

47,054

 

 

2015

 

DCF

Pardo (Vivanda)

 

 

44,521

 

 

 

12,903

 

 

2021

 

DCF

Maestro-Huancayo

 

 

35,455

 

 

 

34,978

 

 

2017

 

DCF

Cuzco

 

 

28,658

 

 

 

28,167

 

 

2017

 

DCF

Panorama – Lima

 

 

22,848

 

 

 

22,136

 

 

2016

 

DCF

Trujillo

 

 

16,576

 

 

 

16,225

 

 

2016

 

DCF

Cercado de Lima – Lima

 

 

16,326

 

 

 

15,908

 

 

2017

 

DCF

Pardo y Aliaga – Lima

 

 

14,530

 

 

 

14,790

 

 

2008

 

DCF

Others

 

 

35,666

 

 

 

34,588

 

 

-

 

DCF

 

 

881,258

 

 

 

828,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

1,353,584

 

 

 

1,298,892

 

 

 

 

 

DCF: Discounted cash flow

(i) As of March 31, 2024 and December 31, 2023, there are no liens on investment property.

 

 

28


 

(b) The net gain on investment properties as of March 31, 2024 and 2023, consists of the following:

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Income from rental of investment property

 

 

17,375

 

 

 

15,408

 

Gain (loss) on valuation of investment property

 

 

18,286

 

 

 

(11,384

)

Total

 

 

35,661

 

 

 

4,024

 

 

(c) The movement of investment property for the three-month period ended March 31, 2024 and 2023, is as follows:

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Beginning of period balance

 

 

1,298,892

 

 

 

1,287,717

 

Additions

 

 

36,406

 

 

 

1,705

 

Gain (loss) on valuation

 

 

18,286

 

 

 

(11,384

)

Others

 

 

 

 

 

(1,768

)

Balance as of March 31

 

 

1,353,584

 

 

 

1,276,270

 

Balance as of December 31, 2023

 

 

 

 

 

1,298,892

 

 

 

 

 

29


 

8. Other accounts receivable and other assets, net, and other accounts payable, provisions and other liabilities

(a) These captions are comprised of the following:

 

 

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Other accounts receivable and other assets

 

 

 

 

 

 

Financial instruments

 

 

 

 

 

 

Other accounts receivable, net

 

 

756,080

 

 

 

663,090

 

POS commission receivable

 

 

589,701

 

 

 

420,644

 

Accounts receivable related to derivative financial instruments (b)

 

 

163,723

 

 

 

158,101

 

Accounts receivable from sale of investments

 

 

161,762

 

 

 

63,466

 

Operations in process

 

 

112,822

 

 

 

83,640

 

Others

 

 

13,667

 

 

 

15,640

 

 

 

 

1,797,755

 

 

 

1,404,581

 

Non-financial instruments

 

 

 

 

 

 

Tax paid to recover

 

 

582,588

 

 

 

422,248

 

Deferred charges

 

 

116,483

 

 

 

101,551

 

Deffered cost of POS affiliation and registration

 

 

91,544

 

 

 

92,511

 

Realizable assets, received as payment and seized through legal actions

 

 

28,738

 

 

 

28,933

 

Tax credit for General Sales Tax - IGV

 

 

27,291

 

 

 

32,482

 

Investments in associates

 

 

23,301

 

 

 

22,548

 

Others

 

 

21,281

 

 

 

20,294

 

 

 

891,226

 

 

 

720,567

 

Total

 

 

2,688,981

 

 

 

2,125,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30


 

 

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Other accounts payable, provisions and other liabilities

 

 

 

 

 

 

Financial instruments

 

 

 

 

 

 

Contract liability with investment component

 

 

1,064,915

 

 

 

1,020,197

 

Third party compensation (**)

 

 

997,448

 

 

 

763,039

 

Other accounts payable

 

 

773,966

 

 

 

718,138

 

Operations in process

 

 

257,111

 

 

 

226,428

 

Accounts payable for acquisitions of investments

 

 

236,459

 

 

 

106,955

 

Accounts payable related to derivative financial instruments (b)

 

 

178,389

 

 

 

145,395

 

Lease liabilities

 

 

106,801

 

 

 

90,513

 

Workers’ profit sharing and salaries payable

 

 

86,716

 

 

 

105,734

 

Allowance for indirect loan losses, Note 6(d.2)

 

 

14,893

 

 

 

17,932

 

Accounts payable to reinsurers and coinsurers

 

 

5,609

 

 

 

7,260

 

 

 

 

3,722,307

 

 

 

3,201,591

 

Non-financial instruments

 

 

 

 

 

 

Taxes payable

 

 

106,397

 

 

 

80,331

 

Provision for other contingencies

 

 

76,957

 

 

 

70,671

 

Deferred income (***)

 

 

23,084

 

 

 

23,490

 

Registration for use of POS

 

 

21,761

 

 

 

21,962

 

Others

 

 

6,764

 

 

 

9,315

 

 

 

 

234,963

 

 

 

205,769

 

Total

 

 

3,957,270

 

 

 

3,407,360

 

 

 

(**) Corresponds mainly to outstanding balances payable to affiliated businesses, for the consumptions made by the cards users, net of the respective fee charged by Izipay, which are mainly settled the day after the transaction was made.

 

(***) Corresponds mainly to deferred fees for indirect loans (mainly guarantee letters) and the transactions registered in Izipay related to installments pending of accrual within the contract’s term with affiliated businesses.

31


 

 

(b) The following table presents, as of March 31, 2024 and December 31, 2023, the fair value of derivative financial instruments recorded as assets or liabilities, including their notional amounts.

 

 

 

Assets

 

Liabilities

 

Notional
amount

 

Effective part recognized in other comprehensive income during the year

 

Maturity

 

Hedged
instruments

 

Caption of the consolidated statement of financial position where the hedged item has been recognized

As of March 31, 2024

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

 

 

 

 

 

Derivatives held for trading -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward exchange contracts

 

48,638

 

41,045

 

8,511,200

 

 

Between April 2024 and December 2025

 

-

 

-

Interest rate swaps

 

44,842

 

30,713

 

1,540,708

 

 

Between May 2024 and June 2036

 

-

 

-

Cross swaps

 

19,409

 

54,345

 

1,787,783

 

 

Between April 2024 and April 2028

 

-

 

-

Options

 

390

 

408

 

165,637

 

 

Between May 2024 and December 2024

 

-

 

-

 

113,279

 

126,511

 

12,005,328

 

 

 

 

 

 

 

Derivatives held as hedges -
Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cross currency swaps (CCS)

 

 

16,155

 

1,115,400

 

(6,314)

 

October 2026

 

Corporate bonds

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

49,222

 

 

558,150

 

(5,381)

 

October 2027

 

Senior bond

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

97

 

2,636

 

241,670

 

334

 

Between January 2025 and June 2025

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

3,386

 

185,900

 

243

 

May 2025

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

6,045

 

111,540

 

48

 

August 2024

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

8,347

 

111,540

 

229

 

October 2024

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

6,213

 

74,420

 

(623)

 

October 2027

 

Senior bond

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

 

6,006

 

74,420

 

(652)

 

October 2027

 

Senior bond

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

1,125

 

 

74,360

 

203

 

February 2025

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

3,090

 

37,180

 

85

 

November 2024

 

Due to banks

 

Due to banks and correspondents

 

50,444

 

51,878

 

2,584,580

 

(11,828)

 

 

 

 

 

 

 

 

163,723

 

178,389

 

14,589,908

 

(11,828)

 

 

 

 

 

 

 

32


 

 

 

 

Assets

 

Liabilities

 

Notional
amount

 

Effective part recognized in other comprehensive income during the year

 

Maturity

 

Hedged
instruments

 

Caption of the consolidated statement of financial position where the hedged item has been recognized

As of December 31, 2023

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

 

 

 

 

 

 

Derivatives held for trading -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward exchange contracts

 

36,595

 

29,517

 

4,875,692

 

 

Between January 2024 and December 2025

 

-

 

-

Interest rate swaps

 

40,350

 

25,196

 

1,530,493

 

 

Between March 2024 and June 2036

 

-

 

-

Cross swaps

 

20,982

 

44,897

 

1,370,799

 

 

Between January 2024 and April 2028

 

-

 

-

Options

 

1,172

 

1,174

 

279,047

 

 

Between January 2024 and December 2024

 

-

 

-

 

99,099

 

100,784

 

8,056,031

 

 

 

 

 

 

 

Derivatives held as hedges-
Cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cross currency swaps (CCS)

 

2,958

 

7,383

 

1,112,700

 

(10,199)

 

October 2026

 

Corporate bonds

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

56,044

 

 

556,950

 

(3,309)

 

October 2027

 

Senior bond

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

 

3,020

 

241,085

 

(1,374)

 

Between January 2025 and June 2025

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

3,823

 

185,450

 

(1,234)

 

May 2025

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

6,708

 

111,270

 

(578)

 

August 2024

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

9,442

 

111,270

 

(277)

 

October 2024

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

5,245

 

74,260

 

(2,401)

 

October 2027

 

Senior bond

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

 

5,041

 

74,260

 

(1,923)

 

October 2027

 

Senior bond

 

Bonds, notes and obligations outstanding

Cross currency swaps (CCS)

 

 

811

 

74,180

 

(619)

 

February 2025

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

3,138

 

37,090

 

(88)

 

November 2024

 

Due to banks

 

Due to banks and correspondents

Cross currency swaps (CCS)

 

 

 

 

(669)

 

 

Corporate bonds

 

Bonds, notes and obligations outstanding

 

59,002

 

44,611

 

2,578,515

 

(22,671)

 

 

 

 

 

 

 

 

158,101

 

145,395

 

10,634,546

 

(22,671)

 

 

 

 

 

 

 

(i) As of March 31, 2024 and December 31, 2023, certain derivative financial instruments hold collateral deposits; see Note 4(d).

(ii) For the designated hedging derivatives mentioned in the table above, changes in fair values of hedging instruments completely offset the changes in fair values of hedged items; therefore, there has been no hedge ineffectiveness as of March 31, 2024 and December 31, 2023. During 2024 and 2023, there were no discontinued hedges accounting.

(iii) Derivatives held for trading are traded mainly to satisfy clients’ needs. The Group may also take positions with the expectation of profiting from favorable movements in prices or rates. Also, this caption includes any derivatives which do not comply with IFRS 9 hedging accounting requirements.

 

 

33


 

 

9. Deposits and obligations

(a) This caption is made up as follows:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Saving deposits

 

 

17,883,166

 

 

 

17,756,097

 

Time deposits

 

 

19,244,637

 

 

 

17,288,629

 

Demand deposits

 

 

13,230,629

 

 

 

13,376,375

 

Compensation for service time (c)

 

 

725,543

 

 

 

760,551

 

Other obligations

 

 

15,643

 

 

 

6,582

 

Total

 

 

51,099,618

 

 

 

49,188,234

 

 

(b) Interest rates applied to deposits and obligations are determined based on the market interest rates.

(c) In May 2022, through Act No. 31480 “Act Authorizing the Withdrawal of Severance Indemnities to Cover Economic Needs Caused by the Covid-19 Pandemic”, the Peruvian government authorized clients, until December 31, 2023, to withdraw the 100 percent of these deposits. As part of this benefit, during 2023, approximately 308,000 clients withdrew approximately S/1,061,734,000.

(d) As of March 31, 2024 and December 31, 2023, deposits and obligations of approximately S/18,375,602,000 and S/18,668,431,000, respectively, are covered by the Peruvian Deposit Insurance Fund. Likewise, at those dates, the coverage of the Deposit Insurance Fund by each client is up to S/112,420 and S/123,810, respectively.

10. Due to banks and correspondents

(a) This caption is comprised of the following:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

By type -

 

 

 

 

 

 

Banco Central de Reserva del Peru (b)

 

 

3,595,956

 

 

 

3,683,687

 

Promotional credit lines

 

 

2,038,599

 

 

 

2,014,600

 

Loans received from foreign entities

 

 

2,667,885

 

 

 

2,895,637

 

Loans received from Peruvian entities

 

 

402,657

 

 

 

309,525

 

 

 

 

8,705,097

 

 

 

8,903,449

 

Interest and commissions payable

 

 

106,961

 

 

 

122,481

 

 

 

 

8,812,058

 

 

 

9,025,930

 

By term -

 

 

 

 

 

 

Short term

 

 

4,861,689

 

 

 

4,852,495

 

Long term

 

 

3,950,369

 

 

 

4,173,435

 

Total

 

 

8,812,058

 

 

 

9,025,930

 

 

(b) As part of the exceptional measures implemented to mitigate the financial and economic impact generated by the Covid-19 pandemic, see Note 1(c), the BCRP issued a series of regulations related to the loans repurchase agreements. As of March 31, 2024 and December 31, 2023, Interbank maintains this type of reporting operations guaranteed by a loan portfolio for approximately S/413,820,000 and S/540,158,000, respectively. See Note 6(a).

 

34


 

11. Bonds, notes and other obligations

(a) This caption is comprised of the following:

 

Issuance

 

Issuer

 

Annual
interest rate

 

Payment frequency

 

Maturity

 

Amount
issued

 

31.03.2024

 

31.12.2023

 

 

 

 

 

 

 

 

 

 

(000)

 

S/(000)

 

S/(000)

Local issuances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated bonds – third program (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third - single series

 

Interseguro

 

4.84%

 

Semi-annually

 

2030

 

US$25,000

 

92,950

 

92,725

First - single series

 

Interseguro

 

6.00%

 

Semi-annually

 

2029

 

US$20,000

 

74,283

 

74,102

Second - single series

 

Interseguro

 

4.34%

 

Semi-annually

 

2029

 

US$20,000

 

74,360

 

74,180

 

 

 

 

 

 

 

 

 

 

 

 

241,593

 

241,007

Corporate bonds – second program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fifth (A series)

 

Interbank

 

3.41% + VAC (*)

 

Semi-annually

 

2029

 

S/150,000

 

150,000

 

150,000

Total local issuances

 

 

 

 

 

 

 

 

 

 

 

391,593

 

391,007

International issuances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated bonds

 

Interbank

 

7.625%

 

Semi-annually

 

2034

 

US$300,000

 

1,107,147

 

Subordinated bonds

 

Interbank

 

4.000%

 

Semi-annually

 

2030

 

US$300,000

 

1,110,126

 

1,107,228

Corporate bonds

 

Interbank

 

5.000%

 

Semi-annually

 

2026

 

S/312,000

 

311,681

 

311,644

Senior bonds

 

IFS

 

4.125%

 

Semi-annually

 

2027

 

US$300,000

 

1,047,783

 

1,045,258

Corporate bonds

 

Interbank

 

3.250%

 

Semi-annually

 

2026

 

US$400,000

 

1,482,006

 

1,477,909

Subordinated bonds

 

Interbank

 

6.625%

 

Semi-annually

 

2029

 

US$300,000

 

 

1,112,438

Total international issuances

 

 

 

 

 

 

 

 

 

 

 

5,058,743

 

5,054,477

Total local and international issuances

 

 

 

 

 

 

 

 

 

 

 

5,450,336

 

5,445,484

Interest payable

 

 

 

 

 

 

 

 

 

 

 

109,672

 

106,145

Total

 

 

 

 

 

 

 

 

 

 

 

5,560,008

 

5,551,629

 

(*) The Spanish term “Valor de actualización constante“ is referred to amounts in Soles indexed by inflation.

 

(b) International issuances are listed at the Luxembourg Stock Exchange. On the other hand, the local and international issuances include standard clauses of compliance with financial ratios, the use of funds and other administrative matters. In the opinion of the Group’s Management and its legal advisers, these clauses have been meet.

 

35


 

12. Assets and Liabilities for insurance and reinsurance contracts

 

(a) This caption is comprised of the following:

 

 

31.03.2024

 

 

31.12.2023

 

 

Assets

 

Liabilities

 

Net

 

 

Assets

 

Liabilities

 

Net

 

 

S/(000)

 

S/(000)

 

S/(000)

 

 

S/(000)

 

S/(000)

 

S/(000)

 

Reinsurance contracts held (*)

 

(27,839

)

 

4,018

 

 

(23,821

)

 

 

(26,287

)

 

1,895

 

 

(24,392

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance contracts issued

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining coverage liability

 

 

 

11,650,967

 

 

11,650,967

 

 

 

 

 

12,000,220

 

 

12,000,220

 

Liability for claims incurred

 

 

 

202,719

 

 

202,719

 

 

 

 

 

205,421

 

 

205,421

 

Total insurance contracts issued (b) and (c)

 

 

 

11,853,686

 

 

11,853,686

 

 

 

 

 

12,205,641

 

 

12,205,641

 

Total reinsurance contracts held and issued

 

(27,839

)

 

11,857,704

 

 

11,829,865

 

 

 

(26,287

)

 

12,207,536

 

 

12,181,249

 

 

(*) Correspond to the ceded part of the reinsurance contracts mainly life insurance contracts.

 

 

 

36


 

 

(b) The composition of issued insurance contract liabilities is presented below:

 

 

 

31.03.2024

 

 

Liabilities remaining coverage

 

 

Liabilities remaining coverage for claims incurred in contracts measured by the general model (BBA) and variable rate model (VFA)

 

 

Liabilities Claim incurred contracts measured by the Premium Allocation Approach (PAA)

 

 

 

 

 

Excluding loss component

 

 

Loss component

 

 

Fulfillment
Cash Flows (FCF)

 

 

Risk
Adjustment (RA)

 

 

Fulfillment
Cash Flows (FCF)

 

 

Risk
Adjustment (RA)

 

 

Total

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Balance as of January 1, 2024

 

11,301,149

 

 

 

699,071

 

 

 

155,649

 

 

 

5,257

 

 

 

43,237

 

 

 

1,278

 

 

 

12,205,641

 

Insurance premiums earned

 

(186,749

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(186,749

)

Contracts under fair value, BBA and VFA approach

 

(131,301

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(131,301

)

Contracts under PAA approach

 

(55,448

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(55,448

)

Insurance service expenses

 

29,019

 

 

 

39,142

 

 

 

112,689

 

 

 

(10

)

 

 

28,370

 

 

 

(118

)

 

 

209,092

 

Claims and other expenses incurred

 

 

 

 

 

 

 

245,109

 

 

 

4

 

 

 

14,077

 

 

 

(118

)

 

 

259,072

 

Amortization of insurance acquisition cash flows

 

29,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,019

 

Losses on onerous contracts and reversals of those losses

 

 

 

 

39,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39,142

 

Changes to liabilities for incurred claims

 

 

 

 

 

 

 

(132,420

)

 

 

(14

)

 

 

14,293

 

 

 

 

 

 

(118,141

)

Insurance service result

 

(157,730

)

 

 

39,142

 

 

 

112,689

 

 

 

(10

)

 

 

28,370

 

 

 

(118

)

 

 

22,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance financial expenses

 

(311,028

)

 

 

9,019

 

 

 

 

 

 

 

 

 

261

 

 

 

 

 

 

(301,748

)

Insurance financial result

 

141,553

 

 

 

9,019

 

 

 

 

 

 

 

 

 

261

 

 

 

 

 

 

150,833

 

Interest rate effect (*)

 

(452,581

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(452,581

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of movements in exchange rates

 

11,422

 

 

 

1,081

 

 

 

20

 

 

 

(1

)

 

 

43

 

 

 

 

 

 

12,565

 

Total changes in the statement of income and other comprehensive income

 

(457,336

)

 

 

49,242

 

 

 

112,709

 

 

 

(11

)

 

 

28,674

 

 

 

(118

)

 

 

(266,840

)

Net cash flow and investment component

 

58,841

 

 

 

 

 

 

(113,015

)

 

 

 

 

 

(30,941

)

 

 

 

 

 

(85,115

)

Premiums received

 

255,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

255,678

 

Claims and other expenses paid

 

 

 

 

 

 

 

(256,467

)

 

 

 

 

 

(30,941

)

 

 

 

 

 

(287,408

)

Insurance acquisition cash flows

 

(53,124

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(53,124

)

Investment component

 

(143,714

)

 

 

 

 

 

143,453

 

 

 

 

 

 

 

 

 

 

 

 

(261

)

Balance as of March 31, 2024

 

10,902,654

 

 

 

748,313

 

 

 

155,343

 

 

 

5,246

 

 

 

40,970

 

 

 

1,160

 

 

 

11,853,686

 

 

(*) Comprises the variation in market interest rate. In 2024, the rates for pension business in US Dollars presented a decrease from 6.409 percent in 2023 to 6.374 percent in 2024; whereas for pension business in soles presented an increase from 6.962 percent in 2023 to 7.442 percent in 2024; and for pension business in soles VAC presented an increase, from 3.722 percent in 2023 to 4.295 percent in 2024.

 

37


 

 

31.12.2023

 

 

Liabilities remaining coverage

 

 

Liabilities remaining coverage for claims incurred in contracts measured by the general model (BBA) and variable rate model (VFA)

 

 

Liabilities Claim incurred contracts measured by the Premium Allocation Approach (PAA)

 

 

 

 

 

Excluding loss component

 

 

Loss component

 

 

Fulfillment
Cash Flows (FCF)

 

 

Risk
Adjustment (RA)

 

 

Fulfillment
Cash Flows (FCF)

 

 

Risk
Adjustment (RA)

 

 

Total

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Balance as of January 1, 2023

 

10,337,035

 

 

 

685,630

 

 

 

151,594

 

 

 

5,411

 

 

 

45,278

 

 

 

2,897

 

 

 

11,227,845

 

Insurance premiums earned

 

(720,636

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(720,636

)

Contracts under fair value, BBA and VFA approach

 

(495,923

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(495,923

)

Contracts under PAA approach

 

(224,713

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(224,713

)

Insurance service expenses

 

127,009

 

 

 

(12,547

)

 

 

433,958

 

 

 

(81

)

 

 

106,801

 

 

 

(1,566

)

 

 

653,574

 

Claims and other expenses incurred

 

 

 

 

 

 

 

965,054

 

 

 

(81

)

 

 

58,884

 

 

 

(1,566

)

 

 

1,022,291

 

Amortization of insurance acquisition cash flows

 

127,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127,009

 

Losses on onerous contracts and reversals of those losses

 

 

 

 

(12,547

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,547

)

Changes to liabilities for incurred claims

 

 

 

 

 

 

 

(531,096

)

 

 

 

 

 

47,917

 

 

 

 

 

 

(483,179

)

Insurance service result

 

(593,627

)

 

 

(12,547

)

 

 

433,958

 

 

 

(81

)

 

 

106,801

 

 

 

(1,566

)

 

 

(67,062

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance financial expenses

 

1,499,572

 

 

 

29,771

 

 

 

 

 

 

 

 

 

(545

)

 

 

 

 

 

1,528,798

 

Insurance financial result

 

543,941

 

 

 

29,771

 

 

 

 

 

 

 

 

 

(545

)

 

 

 

 

 

573,167

 

Interest rate effect (*)

 

955,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

955,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of movements in exchange rates

 

(135,726

)

 

 

(3,736

)

 

 

(447

)

 

 

(73

)

 

 

(213

)

 

 

(53

)

 

 

(140,248

)

Total changes in the statement of income and other comprehensive income

 

770,219

 

 

 

13,488

 

 

 

433,511

 

 

 

(154

)

 

 

106,043

 

 

 

(1,619

)

 

 

1,321,488

 

Net cash flow and investment component

 

193,895

 

 

 

(47

)

 

 

(429,456

)

 

 

 

 

 

(108,084

)

 

 

 

 

 

(343,692

)

Premiums received

 

974,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

974,312

 

Claims and other expenses paid

 

 

 

 

 

 

 

(996,755

)

 

 

 

 

 

(108,084

)

 

 

 

 

 

(1,104,839

)

Insurance acquisition cash flows

 

(213,118

)

 

 

(47

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(213,165

)

Investment component

 

(567,299

)

 

 

 

 

 

567,299

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2023

 

11,301,149

 

 

 

699,071

 

 

 

155,649

 

 

 

5,257

 

 

 

43,237

 

 

 

1,278

 

 

 

12,205,641

 

 

(*) Comprises the variation in market interest rate. In 2023, the rates for pension business in US Dollars presented a decrease from 6.472 percent in 2022 to 6.409 percent in 2023; whereas for pension business in soles presented a decrease from 8.139 percent in 2022 to 6.962 percent in 2023; and for pension business in soles VAC presented a decrease, from 4.765 percent in 2022 to 3.722 percent in 2023.

 

38


 

(c) Following is the present value estimates of future cash flows, risk adjustment and the contractual service margin (CSM) for portfolios included in the life insurance unit of insurance contracts issued:

 

 

31.03.2024

 

 

31.12.2023

 

 

Estimates of the present value of future cash flows

 

 

Risk
Adjustment

 

 

Contractual Service Margin

 

 

Total

 

 

Estimates of the present value of future cash flows

 

 

Risk
Adjustment

 

 

Contractual Service Margin

 

 

Total

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Balance as of January 1

 

11,072,275

 

 

 

302,764

 

 

 

742,870

 

 

 

12,117,909

 

 

 

10,256,194

 

 

 

277,973

 

 

 

599,799

 

 

 

11,133,966

 

Changes that relate to current services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual service margin recognized for services provided

 

 

 

 

 

 

 

(23,644

)

 

 

(23,644

)

 

 

 

 

 

 

 

 

(80,622

)

 

 

(80,622

)

Risk adjustment recognized for the risk expired

 

 

 

 

(235

)

 

 

 

 

 

(235

)

 

 

 

 

 

(306

)

 

 

 

 

 

(306

)

Experience adjustments

 

(8,219

)

 

 

 

 

 

 

 

 

(8,219

)

 

 

(114,952

)

 

 

 

 

 

 

 

 

(114,952

)

Changes that relate to future services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts initially recognized in the period

 

(56,871

)

 

 

2,464

 

 

 

62,331

 

 

 

7,924

 

 

 

(249,907

)

 

 

9,441

 

 

 

289,323

 

 

 

48,857

 

Changes in estimates that adjust the contractual service margin

 

8,843

 

 

 

(5,052

)

 

 

(3,791

)

 

 

 

 

 

98,096

 

 

 

609

 

 

 

(98,705

)

 

 

 

Changes in estimates that do not adjust the contractual service margin

 

86,417

 

 

 

(38,011

)

 

 

 

 

 

48,406

 

 

 

70,637

 

 

 

17,930

 

 

 

 

 

 

88,567

 

Changes that relate to past services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to liabilities for incurred claims

 

543

 

 

 

 

 

 

 

 

 

543

 

 

 

2,866

 

 

 

 

 

 

 

 

 

2,866

 

Insurance service result

 

30,713

 

 

 

(40,834

)

 

 

34,896

 

 

 

24,775

 

 

 

(193,260

)

 

 

27,674

 

 

 

109,996

 

 

 

(55,590

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance financial expenses

 

(310,079

)

 

 

 

 

 

10,500

 

 

 

(299,579

)

 

 

1,471,337

 

 

 

111

 

 

 

37,712

 

 

 

1,509,160

 

Insurance financial result

 

142,502

 

 

 

 

 

 

10,500

 

 

 

153,002

 

 

 

515,706

 

 

 

111

 

 

 

37,712

 

 

 

553,529

 

Interest rate effect

 

(452,581

)

 

 

 

 

 

 

 

 

(452,581

)

 

 

955,631

 

 

 

 

 

 

 

 

 

955,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of movements in Exchange rates

 

9,477

 

 

 

231

 

 

 

237

 

 

 

9,945

 

 

 

(111,021

)

 

 

(2,994

)

 

 

(4,637

)

 

 

(118,652

)

Total changes in the statement of income and other comprehensive income

 

(269,889

)

 

 

(40,603

)

 

 

45,633

 

 

 

(264,859

)

 

 

1,167,056

 

 

 

24,791

 

 

 

143,071

 

 

 

1,334,918

 

Cash flows

 

(81,223

)

 

 

 

 

 

 

 

 

(81,223

)

 

 

(350,975

)

 

 

 

 

 

 

 

 

(350,975

)

Premiums received

 

199,957

 

 

 

 

 

 

 

 

 

199,957

 

 

 

749,090

 

 

 

 

 

 

 

 

 

749,090

 

Claims and other expenses paid

 

(256,467

)

 

 

 

 

 

 

 

 

(256,467

)

 

 

(1,008,640

)

 

 

 

 

 

 

 

 

(1,008,640

)

Insurance acquisition cash flows

 

(24,713

)

 

 

 

 

 

 

 

 

(24,713

)

 

 

(91,425

)

 

 

 

 

 

 

 

 

(91,425

)

Balances

 

10,721,163

 

 

 

262,161

 

 

 

788,503

 

 

 

11,771,827

 

 

 

11,072,275

 

 

 

302,764

 

 

 

742,870

 

 

 

12,117,909

 

 

(*) Balance does not include PPA movement of LRC and LIC amounting to S/81,859,000 and S/87,732,000 as of March 31, 2024 and December 31, 2023, respectively.

 

39


 

 

(d) Following is the CSM composition for insurance contract portfolios for the periods as of March 31, 2024 and December 31, 2023:

 

 

31.03.2024

 

 

31.12.2023

 

 

 

Total Contracts using the fair value approach

 

 

Total Contracts using the fair value approach

 

 

 

S/(000)

 

 

S/(000)

 

 

Contractual Service Margin as of January 1

 

742,870

 

 

 

599,799

 

 

Changes that relate to current services

 

 

 

 

 

 

Contractual service margin recognized for services provided

 

(23,644

)

 

 

(80,622

)

 

Changes that relate to future services

 

 

 

 

 

 

Contracts initially recognized in the period

 

62,331

 

 

 

289,323

 

 

Changes in estimates that adjust the contractual service margin

 

(3,791

)

 

 

(98,705

)

 

Insurance service result

 

34,896

 

 

 

109,996

 

 

Insurance financial expenses

 

10,500

 

 

 

37,712

 

 

Effect of movements in exchange difference

 

237

 

 

 

(4,637

)

 

Total changes in the statement of income

 

45,633

 

 

 

143,071

 

 

Other movements

 

 

 

 

 

 

Balance

 

788,503

 

 

 

742,870

 

 

 

 

(e) Reconciliation of the amount included in net unrealized income for insurance premium reserves. The composition in the fair value reserve for related financial assets measured at fair value through other comprehensive income is disclosed below:

 

 

31.03.2024

 

 

31.12.2023

 

 

S/(000)

 

 

S/(000)

 

Cumulative other comprehensive income, opening balance

 

744,116

 

 

 

1,714,334

 

Gain (loss) recognized in other comprehensive income in the period

 

452,581

 

 

 

(955,631

)

Rate effect of “Renta Particular” contract (*)

 

(451

)

 

 

(14,587

)

Others

 

(725

)

 

 

 

Cumulative other comprehensive income, closing balance

 

1,195,521

 

 

 

744,116

 

 

(*) Comprises the variation in market interest rate of contracts with investment component recorded in the caption “other accounts payable, provisions and other liabilities”, see Note 8.

 

40


 

13. Equity, net

 

(a) Capital stock and distribution of dividends -

IFS’s shares are listed on the Lima Stock Exchange and, since July 2019, they are listed also on the New York Stock Exchange. IFS’s shares have no nominal value and their issuance value was US$9.72 per share. As of March 31, 2024 and December 31, 2023, IFS’s capital stock is represented by 115,447,705 subscribed and paid-in common shares.

 

The General Shareholders’ Meeting of IFS held on March 31, 2023, agreed to distribute dividends charged to profits for the year 2022 for approximately US$136,222,000 (equivalent to approximately S/511,788,000); equivalent to US$1.18 per share, which were paid on May 8, 2023.

 

(b) Treasury stock -

As of March 31, 2024 and December 31, 2023, the Company and some Subsidiaries hold 967,000 shares issued by IFS, with an acquisition cost equivalent to S/84,309,000.

 

On March 31, 2023, the General Shareholders of IFS approved the Share Repurchase Program for an amount of up to US$100 million of common shares, which may be carried out simultaneously on the Lima Stock Exchange – BVL and New York Stock Exchange – NYSE, on one or more dates at market value. The program is expected to continue until terminated by the Board of Directors.

 

Within the framework of this Program, as of the date of this report, Interbank has purchased 938,371 shares, at market values, for the approximate sum of US$21,952,000 (approximately equivalent to S/81,021,000).

 

On March 29, 2023, Interfondos sold 750 shares for an approximate amount of S/75,000.

 

(c) Capital surplus -

Corresponds to the difference between the nominal value of the shares issued and their public offerings price, which were performed in 2007 and 2019. Capital surplus is presented net of the expenses incurred and related to the issuance of such shares.

 

(d) Shareholders’ equity for legal purposes (regulatory capital) -

IFS has no obligation to maintain a minimum capital. As of March 31, 2024 and December 31, 2023, the regulatory capital required for Interbank, Interseguro and Inteligo Bank (a Subsidiary of Inteligo Group Corp.), is calculated based on the separate financial statement of each subsidiary following the accounting standards of their regulators (the SBS or the Central Bank of the Bahamas, in the case of Inteligo Bank).

 

 

 

41


 

14. Tax situation

(a) IFS and its Subsidiaries are incorporated and domiciled in the Republic of Panama and the Commonwealth of the Bahamas (see Note 2), and are not subject to any Income Tax, or any other taxes on capital gains, equity or property. The Subsidiaries incorporated and domiciled in Peru (see Note 2) are subject to the Peruvian Tax legislation; see paragraph (c).

 

Peruvian life insurance companies are exempt from Income Tax regarding the income derived from assets linked to technical reserves for pension insurance and pensions from the Private Pension Fund Administration System; as well as income generated through assets related to life insurance contracts with savings component.

 

In Peru, all income from Peruvian sources obtained from the direct or indirect sale of shares of stock capital representing participation of legal persons domiciled in the country are subject to income tax. For that purpose, an indirect sale shall be considered to have occurred when shares of stock or ownership interests of a legal entity are sold and this legal entity is not domiciled in the country and, in turn, is the holder — whether directly or through other legal entity or entities — of shares of stock or ownership interests of one or more legal entities domiciled in the country, provided that certain conditions established by law occur.

 

In this sense, the Act states that an assumption of indirect transfer of shares arises when in any of the 12 months prior to disposal, the market value of shares or participations of the legal person domiciled is equivalent to 50 percent or more of the market value of shares or participations of the legal person non-domiciled. Additionally, as a concurrent condition, it is established that in any period of 12 months shares or participations representing 10 percent or more of the capital of legal persons non-domiciled be disposal.

 

(b) Legal entities or individuals not domiciled in Peru are subject to an additional tax (equivalent to 5 percent) on dividends received from entities domiciled in Peru. The corresponding tax is withheld by the entity that distributes the dividends. In this regard, since IFS controls the entities that distribute the dividends, it records the amount of the Income Tax on dividends as expense of the financial year of the dividends received. In this sense, as of March 31, 2024 and 2023, the Company has recorded a provision for S/6,814,000 and S/14,456,000, respectively, in the caption “Income Tax” of the interim consolidated statement of income.

 

(c) IFS’s Subsidiaries incorporated in Peru are subject to the payment of Peruvian taxes; hence, they must calculate their tax expenses on the basis of their separate financial statements. The Income Tax rate as of March 31, 2024 and December 31, 2023, was 29.5 percent, over the taxable income.

 

(d) The Tax Authority (henceforth “SUNAT”, by its Spanish acronym) is legally entitled to perform tax audit procedures for up to four years subsequent to the date at which the tax return regarding a taxable period must be filed.

 

Below are the taxable periods subject to inspection by the SUNAT as of March 31, 2024:

 

- Interbank: Income Tax returns for the years 2020 to 2023, and Value-Added-Tax returns for the years 2018 to 2023.

- Interseguro: Income Tax returns for the years 2019, 2021 ,2022 and 2023, and Value-Added-Tax returns for the years 2019 to 2023.

- Procesos de Medios de Pago: Income Tax returns, and Value-Added-Tax returns for the years 2019 to 2023.

- Izipay: Income Tax returns and Value-Added-Tax returns for the years 2019 to 2023.

 

Due to the possible interpretations that the SUNAT may have on the legislation in force, it is not possible to determine at this date whether or not the reviews carried out will result in liabilities for the Subsidiaries; therefore, any higher tax or surcharge that may result from possible tax reviews would be applied to the results of the year in which it is determined.

 

Following is the description of the main ongoing tax procedures and processes for the main Subsidiaries:

 

Interbank:

 

Between 2004 and 2010, Interbank received several Tax Determination and Tax Penalty notices corresponding mainly to the Income Tax determination for the fiscal years 2000 to 2006. As a result, claims and appeals were filed and subsequent contentious administrative proceedings were started. The most relevant matter subject to discrepancy with

42


 

SUNAT corresponds to whether the “interest in suspense” are subject to Income Tax or not. The tax periods under review and related to the aforementioned discrepancy are detailed below:

 

- Regarding the income tax for the period 2003, Interbank has presented various appeals on the tax debt contained in the Resolution of Penalty N° 012-002-0011622, thus reducing said penalty from S/69,000,000 to S/25,000,000. In March 2024, the Tax Court decided to revoke the update of the debt contained in said Resolution.

 

Regarding the advance payments of the income tax for the period 2003, in January 2023, Interbank was notified with a Compliance Resolution that rectified and reduced the tax debt to zero.

 

- Regarding the advance payments of the income tax for the period 2004, in April 2023, the Tax Administration rectified, through a Resolution, the determination of said payments. In this regard Interbank filed the respective Appeal Recourse and in August 2023, through a Cassation Ruling, Interbank received a favorable result.

 

- Regarding the income tax and the advance payments of the income tax for the period 2005, in May 2020, the Tax Administration, through a Resolution, increased the tax debt linked to the suspension of interest compensation from S/1,000,000 to S /35,000,000. Interbank has been presenting various appeals, which is pending of pronouncement by the Tax Court.

 

- Regarding the income tax and the advance payments of the income tax for the period 2006, in February 2021, the Tax Administration, through a Resolution, rejected an excess payment of S/3,500,000 related to litigations about interests in suspense and determined a tax debt of S/23,000,000. In December 2022, the Tax Court revoked the objection for suspended interest, coefficient of payments on account and fines. To date, Interbank is awaiting the Compliance Resolution.

 

As of March 31, 2024 the tax liability requested for the periods 2000 to 2006 for the interest in suspense and other minor contingencies, amounts to approximately S/124,000,000 which includes the tax, fines and interest arrears, out of which S/86,000,000 corresponded to interest in suspense and S/38,000,000 corresponded to other repairs (as of December 31, 2023, the tax liability amounted to S/124,000,000 and includes taxes, fines, and interest arrears, out of which S/59,000,000 corresponded to interest in suspense and S/65,000,000 corresponded to other repairs).

 

Regarding the income tax for the period 2010, in 2017, SUNAT closed the audit procedure. Interbank paid the debt under protest and filed a claim recourse. As of today, the procedure has been appealed and it is pending resolution by the Tax Court.

 

Regarding the income tax for the period 2012, in 2020, Interbank received several Tax Determination and Tax Penalty notices. As of March 31, 2024 and December 31, 2023, the tax debt claimed by the SUNAT with respect to income tax amounted to S/14,400,000. In this regard, Interbank filed diverse Appeal Recourses. SUNAT rejected all these recourses. As of the date of this report, the process is on appeal, pending resolution by the Tax Court.

 

Regarding the income tax for the period 2013, in 2019, Interbank was notified with a Resolution of the Tax Court being the main concept, the deduction of loan write-offs without proof by the SBS in the income tax return. During 2021, Interbank filed a claim. At the end of 2022, the Tax Court reconfirmed its ruling in the aforementioned Resolution and through Resolution of Coactive Collection notified the payment of the debt for approximately S/62,000,000, which was paid by Interbank on February 2, 2023; however, the process continues in the Judiciary instance. Interbank recorded this payment as account receivable from SUNAT, that was recorded as “Tax paid to recover”, in the caption “Other accounts receivable and other assets, net”; see Note 8(a).

 

Regarding the income tax for the periods 2014 and 2015, in 2019, SUNAT notified Interbank about the beginning of the definitive audit procedure on Income Tax of both periods. During 2021 and 2022, Interbank filed diverse Appeal Recourses. SUNAT rejected all these recourses. As of March 31, 2024 and December 31, 2023, the tax debt requested in relation to the Income Tax advance payments for the period 2015 and to the application of the additional Income Tax rate of 4.1 percent, amounted to S/14,700,000 and S/14,600,000, respectively.

 

Regarding the income tax and the advance payments of the income tax for the period 2017, in December 2021, SUNAT notified Interbank about the beginning of the definitive audit procedure on Income Tax and Income Tax advance payments. In this regard, without additional amounts to pay related to Income Tax; however, in November 2022, Interbank filed a claim recourse on other minor concepts, observed by the SUNAT. In June 2023, Interbank was notified

43


 

with a Resolution that declared the claim recourse unfounded. In July 2023, Interbank filed the respective Appeal, which is pending of pronouncement by the Tax Court.

 

Regarding the non-domiciled income tax withholdings for the period 2018, in April 2019, SUNAT notified the start of the final audit process for non-domiciled income tax withholdings.

 

In November 2023, SUNAT notified Interbank the beginning of the inspection process for Income Tax and advance payments of income tax for the period 2018 and resolutions of Penalty issued regarding an alleged infringement of Article 178.1 of the Tax Code for the tax and period indicated. As of March 31, 2024 and December 31, 2023, the tax debt claimed by SUNAT amounts to S/76,000,000 and S/74,000,000, respectively. In December 2023, the respective claim recourse was filed. To date, said recourse is pending resolution by SUNAT.

 

Interseguro:

In October 2023, SUNAT completed the fiscalization procedure regarding the Income Tax corresponding to the year 2020, without additional observations.

 

Izipay:

As of March 31, 2024 and December 31, 2023, Izipay maintains carryforward tax losses amounting to S/72,630,670 and S/71,552,053, respectively. In application of current tax regulations, Management opted for system “B” to offset its tax losses. In application of this system, the tax loss can be offset against the net income obtained in the following years, up to 50 percent of said income until they are extinguished; therefore, they do not have an expiration date.

 

In the opinion of IFS management, its Subsidiaries and its legal advisers, any eventual additional tax would not be significant for the financial statements as of March 31, 2024 and December 31, 2023.

(e) IFS’s Subsidiaries recognize the period’s Income Tax expense using the best estimate of the tax rate. The table below presents the amounts reported in the interim consolidated statements of income:

 

 

 

For the three-month ended as of March 31,

 

 

 

 

 

 

 

2024

 

 

2023

 

 

 

S/(000)

 

 

S/(000)

 

Current – (Income) expense

 

 

(30,054

)

 

 

108,067

 

Current – Dividend expense

 

 

6,814

 

 

 

14,456

 

Deferred – Expense (income)

 

 

64,958

 

 

 

(18,113

)

 

 

41,718

 

 

 

104,410

 

 

44


 

15. Interest income and expenses, and similar accounts

(a)
This caption is comprised of the following:

 

 

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Interest and similar income

 

 

 

 

 

 

Interest on loan portfolio

 

 

1,294,072

 

 

 

1,271,221

 

Impact from the modification of contractual cash flows due to the loan rescheduling schemes

 

 

4,018

 

 

 

(67,993

)

Interest on investments at fair value through other comprehensive income

 

 

343,251

 

 

 

308,483

 

Interest on due from banks and inter-bank funds

 

 

98,946

 

 

 

96,680

 

Interest on investments at amortized cost

 

 

48,995

 

 

 

40,723

 

Dividends on financial instruments

 

 

7,595

 

 

 

5,540

 

Others

 

 

3,306

 

 

 

3,381

 

Total

 

 

1,800,183

 

 

 

1,658,035

 

Interest and similar expenses

 

 

 

 

 

 

Interest and fees on deposits and obligations

 

 

(406,445

)

 

 

(377,533

)

Interest and fees on obligations with financial institutions

 

 

(129,663

)

 

 

(88,034

)

Interest on bonds, notes and other obligations

 

 

(83,628

)

 

 

(80,268

)

Deposit insurance fund fees

 

 

(20,575

)

 

 

(20,127

)

Interest on lease payments

 

 

(1,637

)

 

 

(1,421

)

Others

 

 

(25,083

)

 

 

(17,168

)

Total

 

 

(667,031

)

 

 

(584,551

)

 

45


 

16. Fee income from financial services, net

(a)
This caption is comprised of the following:

 

 

 

31.03.2024

 

31.03.2023

 

 

S/(000)

 

S/(000)

Income

 

 

 

 

Performance obligations at a point in time:

 

 

 

 

Income from services (acquirer and issuer role) (b)

 

179,214

 

177,841

Accounts maintenance, carriage, transfers, and debit and credit card fees

 

176,430

 

184,438

Banking service fees

 

48,660

 

50,664

Brokerage and custody services

 

1,799

 

1,391

Others

 

7,966

 

9,973

 

 

 

 

 

Performance obligations over time:

 

 

 

 

Funds management

 

35,887

 

36,997

Contingent loans fees

 

17,409

 

17,393

Collection services

 

13,391

 

16,775

Others

 

6,141

 

9,631

Total

 

486,897

 

505,103

Expenses

 

 

 

 

Expenses for services (acquirer and issuer role) (b)

 

(82,347)

 

(82,341)

Credit cards

 

(56,136)

 

(49,836)

Commissions Mastercard - Visa

 

(23,719)

 

(18,460)

Credit life insurance premiums

 

(18,658)

 

(16,515)

Local banks fees

 

(14,964)

 

(14,123)

Foreign banks fees

 

(5,660)

 

(6,190)

Others

 

(17,156)

 

(16,320)

Total

 

(218,640)

 

(203,785)

Net

 

268,257

 

301,318

 

(b) Corresponds to the management and operation of the shared service of transaction processing of credit and debit cards, for clients of Izipay.

 

46


 

17. Other income and (expenses)

(a)
This caption is comprised of the following:

 

 

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Other income

 

 

 

 

 

 

Maintenance, installation and sale of POS equipment

 

 

5,968

 

 

 

6,448

 

Services rendered to third parties

 

 

2,303

 

 

 

1,850

 

Income from ATM rentals

 

 

1,319

 

 

 

1,398

 

Other technical income from insurance operations

 

 

1,257

 

 

 

4,733

 

Profit from sale of property, furniture and equipment (b)

 

 

 

 

 

15,300

 

Others

 

 

13,179

 

 

 

22,743

 

Total other income

 

 

24,026

 

 

 

52,472

 

Other expenses

 

 

 

 

 

 

Commissions from insurance activities

 

 

(15,242

)

 

 

(16,238

)

Provision for sundry risk

 

 

(5,614

)

 

 

(2,754

)

Administrative and tax penalties

 

 

(3,229

)

 

 

(1,661

)

Sundry technical insurance expenses

 

 

(3,020

)

 

 

(3,061

)

Provision for accounts receivable

 

 

(2,947

)

 

 

(1,166

)

Expenses related to rental income

 

 

(1,550

)

 

 

(1,312

)

Donations

 

 

(1,037

)

 

 

(1,047

)

Cost of sale of POS equipment

 

 

(844

)

 

 

(4,574

)

Others

 

 

(10,826

)

 

 

(21,111

)

Total other expenses

 

 

(44,309

)

 

 

(52,924

)

(b)
As of March 31, 2023, corresponds to the sale of a property made by Interbank to third parties for US$8,552,000 (approximately equivalent to S/32,667,000), with a net disposal cost of S/17,367,000.

 

 

 

 

 

 

 

47


 

18. Result from insurance activities, before expenses

(a) This caption is comprised of the following:

 

 

31.03.2024

 

 

31.03.2023

 

 

Massive

 

 

Pensions

 

 

Life

 

 

Total

 

 

Massive

 

 

Pensions

 

 

Life

 

 

Total

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Insurance service income -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts measured under BBA and VFA (*):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSM recognized for services rendered

 

16,089

 

 

 

810

 

 

 

6,745

 

 

 

23,644

 

 

 

11,253

 

 

 

809

 

 

 

6,672

 

 

 

18,734

 

Change in Risk adjustment for non-financial risk

 

561

 

 

 

(59

)

 

 

(367

)

 

 

135

 

 

 

336

 

 

 

222

 

 

 

(411

)

 

 

147

 

Insurance service expenses and expected claims incurred

 

17,167

 

 

 

70,046

 

 

 

16,922

 

 

 

104,135

 

 

 

16,327

 

 

 

67,868

 

 

 

14,302

 

 

 

98,497

 

Recovery of cash for insurance acquisition

 

1,177

 

 

 

103

 

 

 

2,108

 

 

 

3,388

 

 

 

574

 

 

 

47

 

 

 

1,212

 

 

 

1,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts measured under PAA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums assigned to the period

 

54,247

 

 

 

 

 

 

1,201

 

 

 

55,448

 

 

 

53,461

 

 

 

 

 

 

1,555

 

 

 

55,016

 

 

 

89,241

 

 

 

70,900

 

 

 

26,609

 

 

 

186,750

 

 

 

81,951

 

 

 

68,946

 

 

 

23,330

 

 

 

174,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance service expenses -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claims incurred expenses and other expenses

 

(23,662

)

 

 

(203,933

)

 

 

(31,476

)

 

 

(259,071

)

 

 

(18,730

)

 

 

(199,707

)

 

 

(28,495

)

 

 

(246,932

)

Onerous contract losses and loss reversion

 

5,094

 

 

 

(42,095

)

 

 

(2,141

)

 

 

(39,142

)

 

 

(2,498

)

 

 

(37,551

)

 

 

14,046

 

 

 

(26,003

)

Amortization of insurance acquisition cash flows

 

(26,808

)

 

 

(103

)

 

 

(2,108

)

 

 

(29,019

)

 

 

(28,521

)

 

 

(47

)

 

 

(1,212

)

 

 

(29,780

)

Changes to liabilities for incurred claims

 

(18,065

)

 

 

120,578

 

 

 

15,628

 

 

 

118,141

 

 

 

(17,160

)

 

 

119,283

 

 

 

(296

)

 

 

101,827

 

 

 

(63,441

)

 

 

(125,553

)

 

 

(20,097

)

 

 

(209,091

)

 

 

(66,909

)

 

 

(118,022

)

 

 

(15,957

)

 

 

(200,888

)

Insurance service results

 

25,800

 

 

 

(54,653

)

 

 

6,512

 

 

 

(22,341

)

 

 

15,042

 

 

 

(49,076

)

 

 

7,373

 

 

 

(26,661

)

Reinsurance income

 

 

 

 

 

 

 

 

 

 

(1,652

)

 

 

 

 

 

 

 

 

 

 

 

(942

)

Financial result of insurance operations (b)

 

 

 

 

(138,360

)

 

 

(12,474

)

 

 

(150,834

)

 

 

 

 

 

(135,555

)

 

 

(10,393

)

 

 

(145,948

)

Result from insurance activities (**)

 

25,800

 

 

 

(193,013

)

 

 

(5,962

)

 

 

(174,827

)

 

 

15,042

 

 

 

(184,631

)

 

 

(3,020

)

 

 

(173,551

)

 

(*) BBA Method (Building Block Approach) and VFA Method (Variable Fee Approach).

(**) Before expenses attributed to the insurance activity that are presented in the caption “Other expenses” in the consolidated statement of income, and that correspond to salaries and employee benefits, administrative expenses, depreciation and amortization, and other expenses for S/91,497,000 and S/82,280,000 as of March 31, 2024 and 2023, respectively.

 

48


 

 

(b) The composition of the financial result of insurance operations, is as follows:

 

 

31.03.2024

 

 

31.03.2023

 

 

Pensions

 

 

Life

 

 

Total

 

 

Pensions

 

 

Life

 

 

Total

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Financial expenses for issued insurance contracts -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in the obligation to pay the fair value holder of the underlying assets of direct participation agreements due to the investment’s return

 

 

 

 

(4,774

)

 

 

(4,774

)

 

 

 

 

 

(5,159

)

 

 

(5,159

)

Interest credited

 

(138,446

)

 

 

(7,753

)

 

 

(146,199

)

 

 

(135,049

)

 

 

(5,194

)

 

 

(140,243

)

Changes in interest rate and other financial hypotheses

 

87

 

 

 

288

 

 

 

375

 

 

 

(178

)

 

 

(12

)

 

 

(190

)

Effect of changes in current estimates and in CSM adjustment rates in relation to the rates used in the initial recognition

 

 

 

 

154

 

 

 

154

 

 

 

2

 

 

 

(148

)

 

 

(146

)

 

 

(138,359

)

 

 

(12,085

)

 

 

(150,444

)

 

 

(135,225

)

 

 

(10,513

)

 

 

(145,738

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income from insurance contracts -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited

 

 

 

 

(10

)

 

 

(10

)

 

 

(254

)

 

 

23

 

 

 

(231

)

Effect of changes in interest rates and other financial hypotheses

 

 

 

 

(426

)

 

 

(426

)

 

 

(76

)

 

 

73

 

 

 

(3

)

Exchange differences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of changes in current estimates and in CSM adjustment rates in relation to the rates used in the initial recognition

 

 

 

 

46

 

 

 

46

 

 

 

 

 

 

24

 

 

 

24

 

 

 

 

 

 

(390

)

 

 

(390

)

 

 

(330

)

 

 

120

 

 

 

(210

)

Result from insurance activities

 

(138,359

)

 

 

(12,475

)

 

 

(150,834

)

 

 

(135,555

)

 

 

(10,393

)

 

 

(145,948

)

 

 

49


 

19. Earnings per share

The following table presents the calculation of the weighted average number of shares and the basic and diluted earnings per share, determined and calculated based on the earnings attributable to the Group:

 

 

 

Outstanding
shares

 

 

Shares considered in computation

 

 

Effective days in the year

 

 

Weighted average number of shares

 

 

 

(in thousands)

 

 

(in thousands)

 

 

 

 

 

(in thousands)

 

Period 2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2023

 

 

115,418

 

 

 

115,418

 

 

 

90

 

 

 

115,418

 

Sale of treasury stock

 

 

1

 

 

 

1

 

 

 

 

 

 

 

Balance as of March 31

 

 

115,419

 

 

 

115,419

 

 

 

 

 

 

115,418

 

Net earnings attributable to IFS’s shareholders S/(000)

 

 

 

 

 

 

 

 

 

 

 

265,093

 

Basic and diluted earnings per share attributable to IFS’s shareholders (Soles)

 

 

 

 

 

 

 

 

 

 

 

2.297

 

Period 2024

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2024

 

 

114,480

 

 

 

114,480

 

 

 

90

 

 

 

114,480

 

Balance as of March 31

 

 

114,480

 

 

 

114,480

 

 

 

 

 

 

114,480

 

Net earnings attributable to IFS’s shareholders S/(000)

 

 

 

 

 

 

 

 

 

 

 

140,159

 

Basic and diluted earnings per share attributable to IFS’s shareholders (Soles)

 

 

 

 

 

 

 

 

 

 

 

1.224

 

 

20. Transactions with related parties and affiliated entities

(a) The table below presents the main transactions with related parties and affiliated entities as of March 31, 2024 and December 31, 2023 and for the three-month periods ended March 31, 2024 and 2023:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Assets

 

 

 

 

 

 

Instruments at fair value through profit or loss

 

 

100

 

 

 

1,165

 

Investments at fair value through other comprehensive income

 

 

68,749

 

 

 

64,229

 

Loans, net (b)

 

 

1,630,557

 

 

 

1,686,288

 

Accounts receivable

 

 

88,431

 

 

 

87,902

 

Other assets

 

 

8,794

 

 

 

21,260

 

Liabilities

 

 

 

 

 

 

Deposits and obligations

 

 

847,179

 

 

 

1,066,505

 

Other liabilities

 

 

278,869

 

 

 

221,460

 

Off-balance sheet accounts

 

 

 

 

 

 

Indirect loans (b)

 

 

47,318

 

 

 

76,652

 

 

 

 

 

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Income (expenses)

 

 

 

 

 

 

Interest and similar income

 

 

29,730

 

 

 

21,128

 

Rental income

 

 

7,056

 

 

 

6,296

 

Interest and similar expenses

 

 

(9,336

)

 

 

(8,618

)

Administrative expenses

 

 

(7,819

)

 

 

(9,281

)

Others, net

 

 

17,125

 

 

 

12,059

 

 

 

 

 

50


 

 

 

 

(b) As of March 31, 2024 and December 31, 2023, the detail of loans is the following:

 

 

31.03.2024

 

 

31.12.2023

 

 

 

Direct
Loans

 

 

Indirect
Loans

 

 

Total

 

 

Direct
Loans

 

 

Indirect
Loans

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Affiliated

 

 

1,335,757

 

 

 

14,963

 

 

 

1,350,720

 

 

 

1,389,463

 

 

 

3,557

 

 

 

1,393,020

 

Associates

 

 

294,800

 

 

 

32,355

 

 

 

327,155

 

 

 

296,825

 

 

 

73,095

 

 

 

369,920

 

 

 

1,630,557

 

 

 

47,318

 

 

 

1,677,875

 

 

 

1,686,288

 

 

 

76,652

 

 

 

1,762,940

 

 

(c) As of March 31, 2024 and December 31, 2023, the directors, executives and employees of the Group have been involved in credit transactions with certain subsidiaries of the Group, between the permitted limits by Peruvian law for financial entities. As of March 31, 2024 and December 31, 2023, direct loans to employees, directors and executives amounted to S/210,522,000 and S/209,671,000, respectively; said loans are repaid monthly and bear interest at market rates.

 

There are no loans to the Group’s directors and key personnel guaranteed with shares of any Subsidiary.

(d) The Group’s key personnel basic remuneration for the three-month periods ended March 31, 2024 and 2023, is presented below:

 

 

 

31.03.2024

 

 

31.03.2023

 

 

 

S/(000)

 

 

S/(000)

 

Salaries

 

 

13,124

 

 

 

11,383

 

Board of Directors’ compensations

 

 

1,015

 

 

 

926

 

Total

 

 

14,139

 

 

 

12,309

 

 

(e) As of March 31, 2024 and December 31, 2023, the Group holds participation in different mutual funds that are managed by Interfondos, which are classified as investments at fair value through profit or loss and amount to S/151,000 and S/7,358,000, respectively.

 

(f) In Management’s opinion, transactions with related companies have been performed under market conditions and within the limits permitted by the SBS.

21. Business segments

The Chief Operating Decision Maker (“CODM”) of IFS is the Chief Executive Officer (“CEO”). The Group presents four operating segments based on products and services, as follows:

 

Banking -

Mainly loans, credit facilities, deposits and current accounts.

Insurance -

It provides life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products.

Wealth management -

It provides brokerage and investment management services. Inteligo serves mainly Peruvian citizens.

Payments -

It provides mainly administration services, operation and processing of credit and debit cards. Taking into account that Izipay became a subsidiary of IFS since April 2022, the results shown for this segment are considered thereafter.

 

The operating segments monitor the operating results of their business units separately for the purpose of making decisions on the distribution of resources and performance assessment. Segment performance is evaluated based on operating profit or loss and it is measured consistently with operating profit or loss in the consolidated financial statements.

51


 

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

52


 

The following table presents the Group’s financial information by business segments for the three-month periods ended March 31, 2024 and 2023:

 

 

 

31.03.2024

 

 

 

Banking

 

 

Insurance

 

 

Wealth
management

 

 

Payments

 

 

Holding and consolidation adjustments

 

 

Total
consolidated

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Consolidated statement of income data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and similar income

 

 

1,510,385

 

 

 

238,766

 

 

 

48,014

 

 

 

2,931

 

 

 

87

 

 

 

1,800,183

 

Interest and similar expenses

 

 

(596,170

)

 

 

(42,322

)

 

 

(27,553

)

 

 

(1,189

)

 

 

203

 

 

 

(667,031

)

Net interest and similar income

 

 

914,215

 

 

 

196,444

 

 

 

20,461

 

 

 

1,742

 

 

 

290

 

 

 

1,133,152

 

Loss on loans, net of recoveries

 

 

(548,785

)

 

 

 

 

 

(156

)

 

 

 

 

 

 

 

 

(548,941

)

(Loss) recovery due to impairment of financial investments

 

 

(26

)

 

 

(38,925

)

 

 

248

 

 

 

 

 

 

(45

)

 

 

(38,748

)

Net interest and similar income after impairment loss on loans

 

 

365,404

 

 

 

157,519

 

 

 

20,553

 

 

 

1,742

 

 

 

245

 

 

 

545,463

 

Fee income from financial services, net

 

 

175,841

 

 

 

(2,540

)

 

 

38,345

 

 

 

79,936

 

 

 

(23,325

)

 

 

268,257

 

Net gain (loss) on sale of financial investments

 

 

5,804

 

 

 

(12,404

)

 

 

(501

)

 

 

 

 

 

 

 

 

(7,101

)

Other income

 

 

112,761

 

 

 

19,361

 

 

 

8,639

 

 

 

8,800

 

 

 

5,270

 

 

 

154,831

 

Result from insurance activities, before expenses

 

 

 

 

 

(83,330

)

 

 

 

 

 

 

 

 

 

 

 

(83,330

)

Depreciation and amortization

 

 

(75,401

)

 

 

(5,496

)

 

 

(2,186

)

 

 

(15,509

)

 

 

(5,261

)

 

 

(103,853

)

Other expenses

 

 

(412,195

)

 

 

(91,736

)

 

 

(35,645

)

 

 

(62,621

)

 

 

15,710

 

 

 

(586,487

)

Income (loss) before translation result and Income Tax

 

 

172,214

 

 

 

(18,626

)

 

 

29,205

 

 

 

12,348

 

 

 

(7,361

)

 

 

187,780

 

Exchange difference

 

 

(2,442

)

 

 

(1,201

)

 

 

(816

)

 

 

(365

)

 

 

(104

)

 

 

(4,928

)

Income Tax

 

 

(29,292

)

 

 

 

 

 

(2,391

)

 

 

(4,994

)

 

 

(5,041

)

 

 

(41,718

)

Net profit (loss) for the period

 

 

140,480

 

 

 

(19,827

)

 

 

25,998

 

 

 

6,989

 

 

 

(12,506

)

 

 

141,134

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IFS’s shareholders

 

 

140,480

 

 

 

(19,827

)

 

 

25,998

 

 

 

6,989

 

 

 

(13,481

)

 

 

140,159

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

975

 

 

 

975

 

 

 

140,480

 

 

 

(19,827

)

 

 

25,998

 

 

 

6,989

 

 

 

(12,506

)

 

 

141,134

 

 

 

 

 

 

 

53


 

 

 

31.03.2023

 

 

 

Banking

 

 

Insurance

 

 

Wealth
management

 

 

Payments

 

 

Holding and consolidation adjustments

 

 

Total
consolidated

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Consolidated statement of income data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and similar income

 

 

1,384,594

 

 

 

228,125

 

 

 

43,841

 

 

 

1,708

 

 

 

(233

)

 

 

1,658,035

 

Interest and similar expenses

 

 

(525,467

)

 

 

(35,055

)

 

 

(22,600

)

 

 

(1,073

)

 

 

(356

)

 

 

(584,551

)

Net interest and similar income

 

 

859,127

 

 

 

193,070

 

 

 

21,241

 

 

 

635

 

 

 

(589

)

 

 

1,073,484

 

(Loss) reversal on loans

 

 

(367,683

)

 

 

 

 

 

72

 

 

 

 

 

 

 

 

 

(367,611

)

(Loss) recovery due to impairment of financial investments

 

 

174

 

 

 

(13,066

)

 

 

(280

)

 

 

 

 

 

(5

)

 

 

(13,177

)

Net interest and similar income after impairment loss on loans

 

 

491,618

 

 

 

180,004

 

 

 

21,033

 

 

 

635

 

 

 

(594

)

 

 

692,696

 

Fee income from financial services, net

 

 

206,971

 

 

 

(5,085

)

 

 

39,569

 

 

 

86,412

 

 

 

(26,549

)

 

 

301,318

 

Net gain (loss) on sale of financial investments

 

 

130

 

 

 

(88

)

 

 

192

 

 

 

 

 

 

 

 

 

234

 

Other income (expenses)

 

 

127,172

 

 

 

30,113

 

 

 

(14,407

)

 

 

7,341

 

 

 

(7,339

)

 

 

142,880

 

Result from insurance activities, before expenses

 

 

 

 

 

(91,271

)

 

 

 

 

 

 

 

 

 

 

 

(91,271

)

Depreciation and amortization

 

 

(66,204

)

 

 

(4,654

)

 

 

(3,797

)

 

 

(12,402

)

 

 

(3,904

)

 

 

(90,961

)

Other expenses

 

 

(420,430

)

 

 

(88,170

)

 

 

(34,249

)

 

 

(61,485

)

 

 

15,178

 

 

 

(589,156

)

Income (loss) before translation result and Income Tax

 

 

339,257

 

 

 

20,849

 

 

 

8,341

 

 

 

20,501

 

 

 

(23,208

)

 

 

365,740

 

Exchange difference

 

 

(6,577

)

 

 

10,432

 

 

 

423

 

 

 

(721

)

 

 

2,027

 

 

 

5,584

 

Income Tax

 

 

(82,459

)

 

 

 

 

 

(944

)

 

 

(7,702

)

 

 

(13,305

)

 

 

(104,410

)

Net profit (loss) for the period

 

 

250,221

 

 

 

31,281

 

 

 

7,820

 

 

 

12,078

 

 

 

(34,486

)

 

 

266,914

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IFS’s shareholders

 

 

250,221

 

 

 

31,281

 

 

 

7,820

 

 

 

12,078

 

 

 

(36,307

)

 

 

265,093

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,821

 

 

 

1,821

 

 

 

250,221

 

 

 

31,281

 

 

 

7,820

 

 

 

12,078

 

 

 

(34,486

)

 

 

266,914

 

 

 

 

54


 

 

 

 

31.03.2024

 

 

 

Banking

 

 

Insurance

 

 

Wealth
management

 

 

Payments

 

 

Holding and consolidation adjustments

 

 

Total
consolidated

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Capital investments (*)

 

 

57,360

 

 

 

37,481

 

 

 

1,104

 

 

 

13,435

 

 

 

 

 

 

109,380

 

Total assets

 

 

71,184,000

 

 

 

15,216,258

 

 

 

4,266,660

 

 

 

1,433,787

 

 

 

365,255

 

 

 

92,465,960

 

Total liabilities

 

 

63,388,806

 

 

 

14,627,673

 

 

 

3,322,394

 

 

 

1,177,408

 

 

 

(355,897

)

 

 

82,160,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31.12.2023

 

 

 

Banking

 

 

Insurance

 

 

Wealth
management

 

 

Payments

 

 

Holding and consolidation adjustments

 

 

Total
consolidated

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Capital investments (*)

 

 

327,513

 

 

 

21,184

 

 

 

6,430

 

 

 

89,646

 

 

 

163

 

 

 

444,936

 

Total assets

 

 

68,437,614

 

 

 

15,225,254

 

 

 

4,374,266

 

 

 

1,196,049

 

 

 

391,596

 

 

 

89,624,779

 

Total liabilities

 

 

60,380,895

 

 

 

14,787,105

 

 

 

3,453,408

 

 

 

946,660

 

 

 

48,610

 

 

 

79,616,678

 

 

(*) It includes the purchase of property, furniture and equipment, intangible assets and investment properties.

 

The distribution of the Group’s total income based on the location of the customer and its assets for the quarter ended March 31, 2024, is S/2,538,526,000 in Peru and S/83,033,000 in Panama (for the quarter ended March 31, 2023, was S/2,423,862,000 in Peru and S/56,618,000 in Panama). The distribution of the Group’s total assets based on the location of the customer and its assets as of March 31, 2024 is S/88,321,847,000 in Peru and S/4,144,113,000 in Panama (for the year ended December 31, 2023, was S/85,387,995,000 in Peru and S/4,236,784,000 in Panama).

 

55


 

22. Financial instruments classification

The financial assets and liabilities of the consolidated statement of financial position as of March 31, 2024 and December 31, 2023, are presented below.

 

 

 

As of March 31, 2024

 

 

 

At fair value through profit or loss

 

 

Debt instruments measured at fair value through other comprehensive income

 

 

Equity instruments measured at fair value through other comprehensive income

 

 

Amortized cost

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

 

 

 

 

 

 

 

 

 

12,965,022

 

 

 

12,965,022

 

Inter-bank funds

 

 

 

 

 

 

 

 

 

 

 

396,215

 

 

 

396,215

 

Financial investments

 

 

1,616,625

 

 

 

20,541,490

 

 

 

437,324

 

 

 

3,920,460

 

 

 

26,515,899

 

Loans, net

 

 

 

 

 

 

 

 

 

 

 

45,995,444

 

 

 

45,995,444

 

Due from customers on acceptances

 

 

 

 

 

 

 

 

 

 

 

19,194

 

 

 

19,194

 

Other accounts receivable and other assets, net

 

 

163,723

 

 

 

 

 

 

 

 

 

1,634,032

 

 

 

1,797,755

 

Reinsurance contract assets

 

 

 

 

 

 

 

 

 

 

 

27,839

 

 

 

27,839

 

 

 

 

1,780,348

 

 

 

20,541,490

 

 

 

437,324

 

 

 

64,958,206

 

 

 

87,717,368

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and obligations

 

 

 

 

 

 

 

 

 

 

 

51,099,618

 

 

 

51,099,618

 

Inter-bank funds

 

 

 

 

 

 

 

 

 

 

 

754,678

 

 

 

754,678

 

Due to banks and correspondents

 

 

 

 

 

 

 

 

 

 

 

8,812,058

 

 

 

8,812,058

 

Bonds, notes and other obligations

 

 

 

 

 

 

 

 

 

 

 

5,560,008

 

 

 

5,560,008

 

Due from customers on acceptances

 

 

 

 

 

 

 

 

 

 

 

19,194

 

 

 

19,194

 

Insurance and reinsurance contract liabilities

 

 

 

 

 

 

 

 

 

 

 

11,857,704

 

 

 

11,857,704

 

Other accounts payable, provisions and other liabilities

 

 

178,389

 

 

 

 

 

 

 

 

 

3,543,918

 

 

 

3,722,307

 

 

 

178,389

 

 

 

 

 

 

 

 

 

81,647,178

 

 

 

81,825,567

 

 

 

 

 

As of December 31, 2023

 

 

 

At fair value through profit or loss

 

 

Debt instruments measured at fair value through other comprehensive income

 

 

Equity instruments measured at fair value through other comprehensive income

 

 

Amortized cost

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

 

 

 

 

 

 

 

 

 

9,818,711

 

 

 

9,818,711

 

Inter-bank funds

 

 

 

 

 

 

 

 

 

 

 

524,915

 

 

 

524,915

 

Financial investments

 

 

1,556,540

 

 

 

21,246,569

 

 

 

444,878

 

 

 

3,474,004

 

 

 

26,721,991

 

Loans, net

 

 

 

 

 

 

 

 

 

 

 

46,520,382

 

 

 

46,520,382

 

Due from customers on acceptances

 

 

 

 

 

 

 

 

 

 

 

40,565

 

 

 

40,565

 

Other accounts receivable and other assets, net

 

 

158,101

 

 

 

 

 

 

 

 

 

1,246,480

 

 

 

1,404,581

 

Reinsurance contract assets

 

 

 

 

 

 

 

 

 

 

 

26,287

 

 

 

26,287

 

 

 

 

1,714,641

 

 

 

21,246,569

 

 

 

444,878

 

 

 

61,651,344

 

 

 

85,057,432

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and obligations

 

 

 

 

 

 

 

 

 

 

 

49,188,234

 

 

 

49,188,234

 

Inter-bank funds

 

 

 

 

 

 

 

 

 

 

 

119,712

 

 

 

119,712

 

Due to banks and correspondents

 

 

 

 

 

 

 

 

 

 

 

9,025,930

 

 

 

9,025,930

 

Bonds, notes and other obligations

 

 

 

 

 

 

 

 

 

 

 

5,551,629

 

 

 

5,551,629

 

Due from customers on acceptances

 

 

 

 

 

 

 

 

 

 

 

40,565

 

 

 

40,565

 

Insurance and reinsurance contract liabilities

 

 

 

 

 

 

 

 

 

 

 

12,207,536

 

 

 

12,207,536

 

Other accounts payable, provisions and other liabilities

 

 

145,395

 

 

 

 

 

 

 

 

 

3,056,196

 

 

 

3,201,591

 

 

 

145,395

 

 

 

 

 

 

 

 

 

79,189,802

 

 

 

79,335,197

 

 

56


 

 

23. Financial risk management

It comprises the management of the main risks, that due to the nature of their operations, IFS and its Subsidiaries are exposed to; and correspond to: credit risk, market risk, liquidity risk, insurance risk and real estate risk.

 

To manage the risks detailed above, every Subsidiary of the Group has a specialized structure and organization in their management, measurement systems, as well as mitigation and coverage processes, according to specific regulatory needs and requirements for the development of its business. The Group and its Subsidiaries, mainly Interbank, Interseguro, Inteligo Bank and Izipay, operate independently but in coordination with the general provisions issued by the Board of Directors and Management of IFS. The Board of Directors and Management of IFS are ultimately responsible for identifying and controlling risks. The Company has an Audit Committee comprised of three independent directors, pursuant to Rule 10A-3 of the Securities Exchange Act of the United States; and one of them is a financial expert according to the regulations of the New York Stock Exchange. The Audit Committee is appointed by the Board of Directors and its main purpose is to monitor and supervise the preparation processes of financial and accounting information, as well as the audits over the financial statements of IFS and its Subsidiaries. Also, the Company has an Internal Audit Division which is responsible for monitoring the key processes and controls to ensure an adequate low risk control according to the standards defined in the Sarbanes Oxley Act.

 

A full description of the Group’s financial risk management is presented in Note 29 “Financial risk management” of the Annual Consolidated Financial Statements; following is presented the financial information related to credit risk management for the loan portfolio, offsetting of financial assets and liabilities, and foreign exchange risk.

 

(a) Credit risk management for loans -

Interbank’s loan portfolio is segmented into homogeneous groups that shared similar credit risk characteristics. These groups are: (i) Retail Banking (credit card, mortgage, payroll loan, consumer loan and vehicular loan), (ii) Small Business Banking (segments S1, S2 and S3), and (iii) Commercial Banking (corporate, institutional, companies and real estate). In addition, at Inteligo Bank, the internal model developed (scorecard) assigns 5 levels of credit risk classified as follows: low risk, medium low risk, medium risk, medium high risk, and high risk. These categories are described in Note 29.1(d) of the audited Annual Consolidated Financial Statements.

 

Additionally, as consequence of the political, economic and social context that arose during the years 2022 and 2021, see note 1(b), and the high uncertainty of the intensity of the El Niño event in the year 2023, the behavior and performance of the expected credit losses of the retail and commercial clients has been affected, thus requiring a greater monitoring of results, which has also implied to perform certain subsequent adjustments to the expected loss model to be able to capture the effects of the current situation, which has generated a high level of uncertainty in the estimation of the loans expected loss.

 

In compliance with the policy of monitoring the Group’s credit risk, during 2023 Interbank performed the recalibration process of its risk parameters for the calculation of the expected credit losses.

 

The Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one borrower or groups of borrowers, geographical and industry segments. Said risks are monitored on a revolving basis and subject to continuous review.

 

(b) Offsetting of financial assets and liabilities -

The information contained in the tables below includes financial assets and liabilities that:

- Are offset in the statement of financial position of the Group; or

- Are subject to an enforceable master netting arrangement or similar agreement that covers similar financial instruments, regardless of whether they are offset in the consolidated statement of financial position or not.

 

Similar arrangements of the Group include derivatives clearing agreements. Financial instruments such as loans and deposits are not disclosed in the following tables since they are not offset in the interim consolidated statement of financial position.

The offsetting framework agreement issued by the International Swaps and Derivatives Association Inc. (“ISDA”) and similar master netting arrangements do not meet the criteria for offsetting in the statement of financial position, because of such agreements were created in order for both parties to have an enforceable offsetting right in cases of default, insolvency or bankruptcy of the Group or the counterparties or following other predetermined events. In addition, the

57


 

Group and its counterparties do not intend to settle such instruments on a net basis or to realize the assets and settle the liabilities simultaneously.

The Group receives and delivers guarantees in the form of cash with respect to transactions with derivatives; see Note 4.

(b.1) Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements as of March 31, 2024 and December 31, 2023, are presented below:

 

 

 

 

 

 

 

 

 

 

 

 

Related amounts not offset in the consolidated statement of financial position

 

 

 

 

 

 

Gross amounts of recognized financial assets

 

 

Gross amounts of recognized financial liabilities and offset in the consolidated statement of financial position

 

 

Net amounts of financial assets presented in the consolidated statement of financial position

 

 

Financial instruments (including non-cash guarantees)

 

 

Cash guarantees received

 

 

Net amount

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives, Note 8(b)

 

 

163,723

 

 

 

 

 

 

163,723

 

 

 

(72,197

)

 

 

(20,746

)

 

 

70,780

 

Total

 

 

163,723

 

 

 

 

 

 

163,723

 

 

 

(72,197

)

 

 

(20,746

)

 

 

70,780

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives, Note 8(b)

 

 

158,101

 

 

 

 

 

 

158,101

 

 

 

(65,099

)

 

 

(9,755

)

 

 

83,247

 

Total

 

 

158,101

 

 

 

 

 

 

158,101

 

 

 

(65,099

)

 

 

(9,755

)

 

 

83,247

 

 

 

(b.2) Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements as of March 31, 2024 and December 31, 2023, are presented below:

 

 

 

 

 

 

 

 

 

 

 

 

Related amounts not offset in the consolidated statement of financial position

 

 

 

 

 

 

Gross amounts of recognized financial liabilities

 

 

Gross amounts of recognized financial assets and offset in the consolidated statement of financial position

 

 

Net amounts of financial liabilities presented in the consolidated statement of financial position

 

 

Financial instruments (including non-cash guarantees)

 

 

Cash guarantees pledged, Note 4(d)

 

 

Net amount

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives, Note 8(b)

 

 

178,389

 

 

 

 

 

 

178,389

 

 

 

(72,197

)

 

 

(33,828

)

 

 

72,364

 

Total

 

 

178,389

 

 

 

 

 

 

178,389

 

 

 

(72,197

)

 

 

(33,828

)

 

 

72,364

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives, Note 8(b)

 

 

145,395

 

 

 

 

 

 

145,395

 

 

 

(65,099

)

 

 

(24,725

)

 

 

55,571

 

Total

 

 

145,395

 

 

 

 

 

 

145,395

 

 

 

(65,099

)

 

 

(24,725

)

 

 

55,571

 

 

(c) Foreign exchange risk -

The Group is exposed to fluctuations in the exchange rates of the foreign currency prevailing in its financial position and cash flows. Management sets limits on the levels of exposure by currency and total daily and overnight positions, which are monitored daily. Most of the assets and liabilities in foreign currency are stated in US Dollars. Transactions in foreign currency are made at the exchange rates of free market.

As of March 31, 2024, the weighted average exchange rate of free market published by the SBS for transactions in US Dollars was S/3.714 per US$1 bid and S/3.721 per US$1 ask (S/3.705 and S/3.713 as of December 31, 2023, respectively). As of March31, 2024, the exchange rate for the accounting of asset and liability accounts in foreign currency set by the SBS was S/3.718 per US$1 (S/3.709 as of December 31, 2023).

58


 

The table below presents the detail of the Group’s position:

 

 

 

As of March 31, 2024

 

 

US Dollars

 

Soles

 

Other
currencies

 

Total

 

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

 

8,664,382

 

4,000,543

 

300,097

 

12,965,022

Inter-bank funds

 

186,038

 

210,177

 

 

396,215

Financial investments

 

7,315,048

 

19,152,706

 

48,145

 

26,515,899

Loans, net

 

13,548,525

 

32,446,919

 

 

45,995,444

Due from customers on acceptances

 

19,194

 

 

 

19,194

Other accounts receivable and other assets, net

 

297,107

 

1,497,974

 

2,674

 

1,797,755

Reinsurance contract assets

 

 

27,839

 

 

27,839

 

30,030,294

 

57,336,158

 

350,916

 

87,717,368

Liabilities

 

 

 

 

 

 

 

 

Deposits and obligations

 

19,428,124

 

31,185,320

 

486,174

 

51,099,618

Inter-bank funds

 

327,419

 

427,259

 

 

754,678

Due to banks and correspondents

 

2,105,996

 

6,706,062

 

 

8,812,058

Bonds, notes and other obligations

 

5,061,928

 

498,080

 

 

5,560,008

Due from customers on acceptances

 

19,194

 

 

 

19,194

Insurance and reinsurance contract liabilities

 

4,128,559

 

7,729,145

 

 

11,857,704

Other accounts payable, provisions and other liabilities

 

1,375,016

 

2,344,283

 

3,008

 

3,722,307

 

32,446,236

 

48,890,149

 

489,182

 

81,825,567

Forwards position, net

 

(1,424,393)

 

1,241,908

 

182,485

 

Currency swaps position, net

 

1,623,200

 

(1,623,200)

 

 

Cross currency swaps position, net

 

2,194,190

 

(2,194,190)

 

 

Options position, net

 

(106)

 

106

 

 

Monetary position, net

 

(23,051)

 

5,870,633

 

44,219

 

5,891,801

 

 

59


 

 

 

As of December 31, 2023

 

 

 

US Dollars

 

 

Soles

 

 

Other
currencies

 

 

Total

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

6,745,220

 

 

 

2,710,275

 

 

 

363,216

 

 

 

9,818,711

 

Inter-bank funds

 

 

55,660

 

 

 

469,255

 

 

 

 

 

 

524,915

 

Financial investments

 

 

7,090,138

 

 

 

19,569,726

 

 

 

62,127

 

 

 

26,721,991

 

Loans, net

 

 

14,131,543

 

 

 

32,388,839

 

 

 

 

 

 

46,520,382

 

Due from customers on acceptances

 

 

40,565

 

 

 

 

 

 

 

 

 

40,565

 

Other accounts receivable and other assets, net

 

 

242,935

 

 

 

1,161,624

 

 

 

22

 

 

 

1,404,581

 

Reinsurance contract assets

 

 

166

 

 

 

26,121

 

 

 

 

 

 

26,287

 

 

 

28,306,227

 

 

 

56,325,840

 

 

 

425,365

 

 

 

85,057,432

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and obligations

 

 

18,277,393

 

 

 

30,420,832

 

 

 

490,009

 

 

 

49,188,234

 

Inter-bank funds

 

 

63,081

 

 

 

56,631

 

 

 

 

 

 

119,712

 

Due to banks and correspondents

 

 

2,342,325

 

 

 

6,683,605

 

 

 

 

 

 

9,025,930

 

Bonds, notes and other obligations

 

 

5,049,942

 

 

 

501,687

 

 

 

 

 

 

5,551,629

 

Due from customers on acceptances

 

 

40,565

 

 

 

 

 

 

 

 

 

40,565

 

Insurance and reinsurance contract liabilities

 

 

3,997,075

 

 

 

8,210,461

 

 

 

 

 

 

12,207,536

 

Other accounts payable, provisions and other liabilities

 

 

1,272,832

 

 

 

1,928,716

 

 

 

43

 

 

 

3,201,591

 

 

 

31,043,213

 

 

 

47,801,932

 

 

 

490,052

 

 

 

79,335,197

 

Forwards position, net

 

 

(631,449

)

 

 

505,661

 

 

 

125,788

 

 

 

 

Currency swaps position, net

 

 

951,864

 

 

 

(951,864

)

 

 

 

 

 

 

Cross currency swaps position, net

 

 

2,430,155

 

 

 

(2,430,155

)

 

 

 

 

 

 

Options position, net

 

 

(51

)

 

 

51

 

 

 

 

 

 

 

Monetary position, net

 

 

13,533

 

 

 

5,647,601

 

 

 

61,101

 

 

 

5,722,235

 

 

As of March 31, 2024, the Group granted indirect loans (contingent operations) in foreign currency for approximately US$706,088,000, equivalent to S/2,625,235,000 (US$741,882,000, equivalent to S/2,751,640,000 as of December 31, 2023).

 

 

60


 

24. Fair value

(a) Financial instruments measured at their fair value and fair value hierarchy -

The following table presents an analysis of the financial instruments that are measured at their fair value, including the level of hierarchy of fair value. The amounts are based on the balances presented in the consolidated statement of financial position:

 

 

 

As of March 31, 2024

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Financial assets

 

S/(000)

 

S/(000)

 

S/(000)

 

S/(000)

Financial investments

 

 

 

 

 

 

 

 

At fair value through profit or loss (*)

 

316,370

 

374,867

 

925,388

 

1,616,625

Debt instruments measured at fair value through other comprehensive income

 

12,159,768

 

8,169,773

 

 

20,329,541

Equity instruments measured at fair value through other comprehensive income

 

389,362

 

10,781

 

37,181

 

437,324

Derivatives receivable

 

 

163,723

 

 

163,723

 

12,865,500

 

8,719,144

 

962,569

 

22,547,213

Accrued interest

 

 

 

 

 

 

 

211,949

Total financial assets

 

 

 

 

 

 

 

22,759,162

Financial liabilities

 

 

 

 

 

 

 

 

Derivatives payable

 

 

178,389

 

 

178,389

 

 

 

As of December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Financial investments

 

 

 

 

 

 

 

 

 

 

 

 

At fair value through profit or loss (*)

 

 

329,609

 

 

 

344,155

 

 

 

882,776

 

 

 

1,556,540

 

Debt instruments measured at fair value through other comprehensive income

 

 

11,779,535

 

 

 

9,132,649

 

 

 

 

 

 

20,912,184

 

Equity instruments measured at fair value through other comprehensive income

 

 

397,247

 

 

 

10,541

 

 

 

37,090

 

 

 

444,878

 

Derivatives receivable

 

 

 

 

 

158,101

 

 

 

 

 

 

158,101

 

 

 

12,506,391

 

 

 

9,645,446

 

 

 

919,866

 

 

 

23,071,703

 

Accrued interest

 

 

 

 

 

 

 

 

 

 

 

334,385

 

Total financial assets

 

 

 

 

 

 

 

 

 

 

 

23,406,088

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives payable

 

 

 

 

 

145,395

 

 

 

 

 

 

145,395

 

 

 

(*) As of March 31, 2024 and December 31, 2023, correspond mainly to participations in mutual funds and investment funds.

 

Financial assets included in Level 1 are those measured on the basis of information that is available on the market, to the extent that their quoted prices reflect an active and liquid market and that are available in some centralized trading mechanism, trading agent, price supplier or regulatory entity.

 

Financial instruments included in Level 2 are valued based on the market prices of other instruments with similar characteristics or with financial valuation models based on information of variables observable in the market (interest rate curves, price vectors, etc.).

 

Financial assets included in Level 3 are valued by using assumptions and data that do not correspond to prices of operations traded on the market. The valuation requires Management to make certain assumptions about the model variables and data, including the forecast of cash flow, discount rate, credit risk and volatility.

 

During 2024, there were transfers of certain financial instruments from Level 2 to Level 1 for an amount of S/40,070,000. During 2024 and 2023, there were no transfers of financial instruments to or from level 3 to level 1 or level 2.

 

61


 

 

The table below includes a reconciliation of fair value measurement of financial instruments classified by the Group within Level 3 of the valuation hierarchy:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Initial balance as of January 1

 

 

919,866

 

 

 

977,835

 

Purchases

 

 

26,847

 

 

 

85,777

 

Sales

 

 

(8,436

)

 

 

(35,625

)

Gain (loss) recognized on the consolidated statement of income

 

 

24,292

 

 

 

(108,121

)

Ending balance

 

 

962,569

 

 

 

919,866

 

 

 

62


 

(b) Financial instruments not measured at their fair value -

The table below presents the disclosure of the comparison between the carrying amounts and fair values of the Group’s financial instruments that are not measured at their fair value, presented by level of fair value hierarchy:

 

 

 

As of March 31, 2024

 

 

As of December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair
value

 

 

Book
value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair
value

 

 

Book
value

 

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

 

S/(000)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

 

 

 

12,965,022

 

 

 

 

 

 

12,965,022

 

 

 

12,965,022

 

 

 

 

 

 

9,818,711

 

 

 

 

 

 

9,818,711

 

 

 

9,818,711

 

Inter-bank funds

 

 

 

 

 

396,215

 

 

 

 

 

 

396,215

 

 

 

396,215

 

 

 

 

 

 

524,915

 

 

 

 

 

 

524,915

 

 

 

524,915

 

Investments at amortized cost

 

 

3,447,740

 

 

 

274,509

 

 

 

 

 

 

3,722,249

 

 

 

3,920,460

 

 

 

3,277,672

 

 

 

80,042

 

 

 

 

 

 

3,357,714

 

 

 

3,474,004

 

Loans, net

 

 

 

 

 

44,607,102

 

 

 

 

 

 

44,607,102

 

 

 

45,995,444

 

 

 

 

 

 

44,737,995

 

 

 

 

 

 

44,737,995

 

 

 

46,520,382

 

Due from customers on acceptances

 

 

 

 

 

19,194

 

 

 

 

 

 

19,194

 

 

 

19,194

 

 

 

 

 

 

40,565

 

 

 

 

 

 

40,565

 

 

 

40,565

 

Other accounts receivable and other assets, net

 

 

 

 

 

1,634,032

 

 

 

 

 

 

1,634,032

 

 

 

1,634,032

 

 

 

 

 

 

1,246,480

 

 

 

 

 

 

1,246,480

 

 

 

1,246,480

 

Reinsurance contract assets

 

 

 

 

 

27,839

 

 

 

 

 

 

27,839

 

 

 

27,839

 

 

 

 

 

 

26,287

 

 

 

 

 

 

26,287

 

 

 

26,287

 

Total

 

 

3,447,740

 

 

 

59,923,913

 

 

 

 

 

 

63,371,653

 

 

 

64,958,206

 

 

 

3,277,672

 

 

 

56,474,995

 

 

 

 

 

 

59,752,667

 

 

 

61,651,344

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and obligations

 

 

 

 

 

51,114,990

 

 

 

 

 

 

51,114,990

 

 

 

51,099,618

 

 

 

 

 

 

49,394,868

 

 

 

 

 

 

49,394,868

 

 

 

49,188,234

 

Inter-bank funds

 

 

 

 

 

754,678

 

 

 

 

 

 

754,678

 

 

 

754,678

 

 

 

 

 

 

119,712

 

 

 

 

 

 

119,712

 

 

 

119,712

 

Due to banks and correspondents

 

 

 

 

 

8,882,979

 

 

 

 

 

 

8,882,979

 

 

 

8,812,058

 

 

 

 

 

 

9,028,209

 

 

 

 

 

 

9,028,209

 

 

 

9,025,930

 

Bonds, notes and other obligations

 

 

4,994,016

 

 

 

410,219

 

 

 

 

 

 

5,404,235

 

 

 

5,560,008

 

 

 

4,587,631

 

 

 

708,643

 

 

 

 

 

 

5,296,274

 

 

 

5,551,629

 

Due from customers on acceptances

 

 

 

 

 

19,194

 

 

 

 

 

 

19,194

 

 

 

19,194

 

 

 

 

 

 

40,565

 

 

 

 

 

 

40,565

 

 

 

40,565

 

Insurance and reinsurance contract liabilities

 

 

 

 

 

11,857,704

 

 

 

 

 

 

11,857,704

 

 

 

11,857,704

 

 

 

 

 

 

12,207,536

 

 

 

 

 

 

12,207,536

 

 

 

12,207,536

 

Other accounts payable and other liabilities

 

 

 

 

 

3,543,918

 

 

 

 

 

 

3,543,918

 

 

 

3,543,918

 

 

 

 

 

 

3,056,196

 

 

 

 

 

 

3,056,196

 

 

 

3,056,196

 

Total

 

 

4,994,016

 

 

 

76,583,682

 

 

 

 

 

 

81,577,698

 

 

 

81,647,178

 

 

 

4,587,631

 

 

 

74,555,729

 

 

 

 

 

 

79,143,360

 

 

 

79,189,802

 

 

The methodologies and assumptions used to determine fair values depend on the terms and risk characteristics of each financial instrument and they include the following:

(i) Long-term fixed-rate and variable-rate loans are assessed by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the estimated losses of these loans. As of March 31, 2024 and December 31, 2023, the book value of loans, net of allowances, was not significantly different from the calculated fair values.

(ii) Instruments whose fair value approximates their book value: For financial assets and financial liabilities that are liquid or have short-term maturity (less than 3 months) it is assumed that the carrying amounts approximate to their fair values. This assumption is also applied to demand deposits, savings accounts without a specific maturity and variable-rate financial instruments.

(iii) Fixed-rate financial instruments: The fair value of fixed-rate financial assets and financial liabilities at amortized cost is determined by comparing market interest rates when they were first recognized with current market rates related to similar financial instruments for their remaining term to maturity. The fair value of fixed interest rate deposits is based on discounted cash flows using market interest rates for financial instruments with similar credit risk and maturity. For quoted debt issued, the fair value is determined based on quoted market prices. When quotations are not available, a discounted cash flow model is used based on the yield curve of the appropriate interest rate for the remaining term to maturity.

 

63


 

25. Fiduciary activities and management of funds

The Group provides custody, trustee, investment management and advisory services to third parties; therefore, the Group makes purchase and sale decisions in relation to a wide range of financial instruments. Assets that are held as trust are not included in the consolidated financial statements.

As of March 31, 2024 and December 31, 2023, the value of the managed off-balance sheet financial assets is as follows:

 

 

 

31.03.2024

 

 

31.12.2023

 

 

 

S/(000)

 

 

S/(000)

 

Investment funds

 

 

18,071,068

 

 

 

17,829,262

 

Mutual funds

 

 

5,953,643

 

 

 

5,352,241

 

Total

 

 

24,024,711

 

 

 

23,181,503

 

 

26. Subsequent event

The General Shareholders’ Meeting of IFS held on April 1, 2024, agreed to distribute dividends charged to profits for the year 2023 for approximately US$115,443,000 (equivalent to approximately S/427,369,000); equivalent to US$1.00 per share, which were paid on April 29, 2024.

64