(d)

Unrealized results, net —

This item is made up as follows:


	Unrealized gain (loss)

	Instruments that will not be reclassified to consolidated statement of income			Instruments to be reclassified to the consolidated statement of income
	Equity instruments at fair value			Debt instruments at fair value			Insurance premiums reserve			Cash flow hedge reserve			Translation of foreign operations		Total
	S/(000)			S/(000)			S/(000)			S/(000)			S/(000)		S/(000)
Balances as of January 1, 2020		264,883			1,036,159			(923,855	)		(22,758	)		88,476		442,905
Effect of changes in the discount rates of pension reserves, Note 3.4(d)		—			—			(331,990	)		—			—		(331,990	)
Unrealized gain from equity instruments at fair value through other comprehensive income, net of unrealized loss		8,175			—			—			—			—		8,175
Transfer to retained earnings from realized loss from equity instruments at fair value through other comprehensive income		24,154			—			—			—			—		24,154
Unrealized gain from debt instruments at fair value through other comprehensive income, net of unrealized loss		—			791,762			—			—			—		791,762
Transfer to realized gain from debt instruments at fair value through other comprehensive income, net of unrealized loss		—			(193,683	)		—			—			—		(193,683	)
Transfer of impairment loss on debt instruments at fair value through other comprehensive income		—			32,865			—			—			—		32,865
Variation for net unrealized loss on cash flow hedges		—			—			—			(38,924	)		—		(38,924	)
Transfer of realized loss on cash flow hedges to consolidated statement of income, net of realized gain		—			—			—			24,574			—		24,574
Translation of foreign operations		—			—			—			—			76,935		76,935

Balances as of December 31, 2020		297,212			1,667,103			(1,255,845	)		(37,108	)		165,411		836,773

Effect of changes in the discount rates of pension reserves, Note 3.4(d)		—			—			1,389,995			—			—		1,389,995
Unrealized gain from equity instruments at fair value through other comprehensive income, net of unrealized loss		145,899			—			—			—			—		145,899
Transfer to retained earnings from realized loss from equity instruments at fair value through other comprehensive income		(451,898	)		—			—			—			—		(451,898	)
Unrealized loss from debt instruments at fair value through other comprehensive income, net of unrealized loss		—			(1,986,046	)		—			—			—		(1,986,046	)
Transfer to realized gain from debt instruments at fair value through other comprehensive income, net of unrealized loss		—			(249,689	)		—			—			—		(249,689	)
Transfer of impairment recovery on debt instruments at fair value through other comprehensive income		—			(30,994	)		—			—			—		(30,994	)
Variation for net unrealized loss on cash flow hedges		—			—			—			68,615			—		68,615
Transfer of realized loss on cash flow hedges to consolidated statement of income, net of realized gain		—			—			—			13,371			—		13,371
Translation of foreign operations		—			—			—			—			95,674		95,674

Balances as of December 31, 2021		(8,787	)		(599,626	)		134,150			44,878			261,085		(168,300	)

Effect of changes in the discount rates of pension reserves, Note 3.4(d)		—			—			1,518,484			—			—		1,518,484


	Unrealized gain (loss)

	Instruments that will not be reclassified to consolidated statement of income			Instruments to be reclassified to the consolidated statement of income
	Equity instruments at fair value			Debt instruments at fair value			Insurance premiums reserve		Cash flow hedge reserve			Translation of foreign operations			Total
	S/(000)			S/(000)			S/(000)		S/(000)			S/(000)			S/(000)
Unrealized loss from equity instruments at fair value through other comprehensive income, net of unrealized gains		(21,663	)		—			—		—			—			(21,663	)
Transfer to retained earnings from realized gain from equity instruments at fair value through other comprehensive income		(16,313	)		—			—		—			—			(16,313	)
Unrealized loss from debt instruments at fair value through other comprehensive income, net of unrealized gain		—			(1,848,192	)		—		—			—			(1,848,192	)
Transfer to realized loss from debt instruments at fair value through other comprehensive income, net of unrealized gain		—			14,263			—		—			—			14,263
Transfer of impairment recovery on debt instruments at fair value through other comprehensive income		—			12,746			—		—			—			12,746
Variation for net unrealized loss on cash flow hedges		—			—			—		(70,170	)		—			(70,170	)
Transfer of realized loss on cash flow hedges to consolidated statement of income, net of realized gain		—			—			—		16,030			—			16,030
Translation of foreign operations		—			—			—		—			(50,165	)		(50,165	)

Balances as of December 31, 2022		(46,763	)		(2,420,809	)		1,652,634		(9,262	)		210,920			(613,280	)

(e)

Components of other comprehensive income -

The consolidated statement of comprehensive income include: (i) Other comprehensive income that will not be reclassified to the consolidated statement of income in future periods, such as the revaluation of gain (loss) in equity instruments at fair value through other comprehensive income; which will not be reclassified to the consolidated statement of income at the time of its disposal, but will be reclassified to retained earnings; and (ii) Other comprehensive income to be reclassified to the consolidated statement of income in future periods, such as the comprehensive income of financial instruments derivatives used as cash flow hedges, debt instruments at fair value through other comprehensive income and translation for foreign operations. Below is the movement of the caption:


	2022			2021			2020
	S/(000)			S/(000)			S/(000)
Other comprehensive income that will not be reclassified to the consolidated statement of income in future periods:
Equity instruments at fair value through other comprehensive income
(Losses) gains on equity instruments at fair value through other comprehensive income, net		(21,663	)		145,899			8,175

Subtotal		(21,663	)		145,899			8,175

Non-controlling interest		(43	)		231			(35	)
Income Tax		(218	)		31			36

Total		(21,924	)		146,161			8,176

Other comprehensive income to be reclassified to the consolidated statement of income in future periods:
Debt instruments at fair value through other comprehensive income
Unrealized net (loss) gain on debt instruments at fair value through other comprehensive income		(1,848,192	)		(1,986,046	)		791,762
Transfer to income of unrealized net loss (gain) on debt instruments at fair value through other comprehensive income		14,263			(249,689	)		(193,683	)
Transfer to income of loss (recovery) for impairment on debt instruments at fair value through other comprehensive income		12,746			(30,994	)		32,865

Subtotal		(1,821,183	)		(2,266,729	)		630,944

Non-controlling interest		(4,423	)		(6,978	)		2,082
Income Tax		(8,250	)		(8,404	)		2,643

Total		(1,833,856	)		(2,282,111	)		635,669


	2022		2021		2020
	S/(000)		S/(000)		S/(000)
Insurance premiums reserve, Note 14(b)		1,518,484		1,389,995		(331,990	)

Non-controlling interest		2,496		2,285		(546	)

Total		1,520,980		1,392,280		(332,536	)


	2022			2021		2020
	S/(000)			S/(000)		S/(000)
Cash flow hedges:
Net (loss) gain from cash flow hedges		(70,170	)		68,615		(38,924	)
Transfer of net realized loss from cash flow hedge to consolidated statement of income		16,030			13,371		24,574

Subtotal		(54,140	)		81,986		(14,350	)

Non-controlling interest		(144	)		261		(59	)
Income Tax		(8,670	)		15,696		(3,559	)

Total		(62,954	)		97,943		(17,968	)

Foreign currency translation		(50,165	)		95,674		76,935

(f)

Shareholders’ equity for legal purposes (regulatory capital) -

IFS is not required to establish a regulatory capital for statutory purposes. As of December 31, 2022 and 2021, 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 and prepared following the accounting principles and practices of their respective regulators (the SBS or the Central Bank of the Bahamas, in the case of Inteligo Bank).

The regulatory capital required for Interbank, Interseguro and Inteligo Bank is detailed below:

Interbank’s regulatory capital -

According to Legislative Decree No. 1028 and amendments, Interbank’s regulatory capital must be equal to or higher than 10 percent of the assets and contingent credits weighted by total risk represented by the sum of: the regulatory capital requirement for market risk multiplied by 10, the regulatory capital requirement for operational risk multiplied by 10 and the assets and contingent credits weighted by credit risk. However, through Multiple Official Letter No. 27358-2021 and Emergency Decree

003-2022,

the SBS established that in the period between April 2021 and August 2022, the regulatory capital for financial companies shall be equal or higher than 8 percent of total risk-weighted assets and contingencies and for the period between September 2022 and March 2023, it will be of 8.5 percent. Once this period ends, the regulatory capital shall go back to the percentage initially defined (10 percent of the assets and contingent loans weighted by total risks).

As of December 31, 2022 and 2021, pursuant to Legislative Decree No. 1028 and amendments, Interbank maintains the following amounts related to the risk weighted assets and contingent and regulatory capital (basic and supplementary):


	2022			2021
	S/(000)			S/(000)
Total risk weighted assets and credits		64,690,083			57,570,306
Total regulatory capital		9,754,806			9,135,614
Basic regulatory capital (Level 1)		7,016,417			6,262,096
Supplementary regulatory capital (Level 2)		2,738,389			2,873,518
Global capital to regulatory capital ratio		15.08	%		15.87	%

As of December 31, 2022 and 2021, Interbank has complied with SBS Resolutions No.2115-2009, No.6328-2009, No.14354-2009, No.4128-2014, “Regulations for the Regulatory Capital Requirement for Operational Risk”, “Market Risk” and “Credit Risk”, respectively, as amended. These resolutions establish, mainly, the methodologies to be applied by financial entities to calculate the assets and credits weighted per type of risk.

In July 2011, the SBS issued Resolution No. 8425-2011, modified by Resolution SBS

No. 603-2016

and SBS

No. 975-2016,

through these resolutions establish that, to determine an additional regulatory capital level and develop a process to assess the adequacy of their regulatory capital in relation with their risk profile, which must follow the methodology described in said resolution. The additional regulatory capital requirement shall be equivalent to the amount of regulatory capital requirements calculated for each of the following components: economic cycle, concentration risk, market concentration risk and interest rate risk in the bank book, among others. As of December 31, 2022 and 2021, the additional regulatory capital estimated by Interbank amounts to approximately S/840,914,000 and S/587,350,000, respectively.

In December 2021, the SBS issued Resolution No. 3921-2021, through which it establishes the modification to the calculation of the additional regulatory capital requirement for market concentration, considering the criteria of size, interconnection, substitutability, and complexity. Likewise, it establishes an adaptation period of two years starting in December 2022.

On March 26, 2020, the SBS issued Resolution No. 1264-2020, establishing that, for the calculation of capital requirements in relation to the weighting factor for mortgage loans and

non-revolving

consumer loans that have been subject to rescheduling where its expiration term has been extended, will not be increased. Likewise, such Resolution authorizes to the financial entities to use the additional regulatory capital accumulated for the economic cycle component, see Note 1(c).

In that sense, Interbank has granted loan reschedulings to its clients, which consisted of modifications to the payment schedules and/or grace periods so that the original term of loans was postponed; however, according to the SBS’s indications, this term postponement has not generated that Interbank needs higher regulatory capital requirements, by the weighting factor.

In Group Management’s opinion, Interbank has complied with the requirements established by the aforementioned Resolution.

Interseguro’s regulatory capital -

In accordance with SBS Resolution No. 1124-2006, and its amendments, Interseguro is required to maintain a level of regulatory capital to maintain a minimum equity to support technical risks and other risks that could affect it. The regulatory capital must be higher than the amount resulting from the sum of the solvency net equity, the guarantee fund and the regulatory capital intended to cover credit risks.

The solvency net equity is represented by the higher amount between the solvency margin and the minimal capital. As of December 31, 2022 and 2021, the solvency net equity is represented by the solvency margin. The solvency margin is the complementary support that insurance entities must maintain to deal with possible situations of excess claims not foreseen in the establishment of technical reserves. The total solvency margin corresponds to the sum of the solvency margins of each branch in which Interseguro operates.

Also, the guarantee fund represents the additional equity support that insurance companies must maintain to deal with the other risks that can affect them and that are not covered by the solvency net equity, such as investment risks and other risks. The monthly amount of said fund must be equivalent to 35 percent of the solvency net equity, calculated in accordance with SBS Resolution No. 1124-2006.

As of December 31, 2022 and 2021, Interseguro’s surplus equity is as follows:


	2022		2021
	S/(000)		S/(000)
Regulatory capital		1,338,237		1,387,713
Less
Solvency equity (solvency margin)		714,875		672,551
Guarantee fund		250,207		235,393

Surplus		373,155		479,769

Inteligo Bank’s regulatory capital -

The Central Bank of the Bahamas requires Inteligo Bank to maintain a regulatory capital of not less than 8 percent of its risk weighted assets. Inteligo Bank’s capital ratio as of December 31, 2022 and 2021 is the following:


	2022		2021
	US$(000)		US$(000)
Total eligible capital		195,806		287,196

Total risk weighted assets		959,241		1,177,296

Capital adequacy ratio (in percentage)		20.41		24.39

In Management’s opinion, its Subsidiaries have complied with the requirements set forth by the regulatory entities.

(g)

Reserves -

The General Shareholders’ Meeting of IFS held on March 31, 2022, agreed to constitute reserves for S/800,000,000 charged to retained earnings.

The Board of Directors of IFS session held on April 22, 2020, agreed to constitute reserves for S/500,000,000 charged to retained earnings.

(h)

Subsidiaries’ legal and special reserves –

The Subsidiaries domiciled in Peru are required to establish a reserve equivalent to a certain percentage of their

paid-in

capital (20 or 35 percent, depending on their economic activity) through annual transfers of not less than 10 percent of their net income. As of December 31, 2022 and 2021, the reserves constituted by the Peruvian subsidiaries amounted to S/1,545,471,000 and S/1,397,030,000, respectively.