If You Invested in Intercorp Financial Services Inc (IFS)

Intercorp Financial Services Inc. ("IFS") is a financial services holding company incorporated under the laws of the Republic of Panama, with securities listed on both the Lima Stock Exchange and the New York Stock Exchange under the symbol IFS. According to the company, IFS, through its main subsidiaries, is a leading provider of financial services in Peru, serving retail customers and commercial clients through banking, insurance, wealth management and payments activities.

IFS’ primary operating businesses are Banco Internacional del Perú, S.A.A.-Interbank ("Interbank"), Interseguro Compañía de Seguros, S.A. ("Interseguro"), Inteligo Group Corp. ("Inteligo") and Procesos de Medios de Pago S.A. and its subsidiary Izipay S.A.C. ("Izipay"). These subsidiaries give IFS exposure to key areas of the Peruvian financial system, from general banking services to life insurance, investment management and payment processing.

Banking segment: Interbank

Through Interbank, IFS operates a full-service bank that provides general banking services to retail and commercial customers. Based on the company’s disclosures, this includes activities such as loans, credit facilities, deposits and current accounts, reflecting a traditional commercial banking model focused on individuals and businesses in Peru.

Insurance segment: Interseguro

Interseguro is described by IFS as a leading insurance company in Peru. Its activities include annuities, individual life insurance, bank assurance and the direct sale of retail insurance products. Interseguro also offers products that include the Peruvian mandatory traffic accident insurance, positioning it within both long-term savings and protection products and compulsory insurance lines.

Wealth management segment: Inteligo

Inteligo Group Corp. is characterized by IFS as a fast-growing provider of wealth management and brokerage services. Inteligo delivers wealth management services through Inteligo Bank Ltd. and Interfondos, and offers brokerage services through Inteligo SAB. This structure allows IFS to participate in investment management, advisory and securities brokerage for clients seeking investment and portfolio services.

Payments and acquiring segment: Izipay

Izipay, through Procesos de Medios de Pago S.A. and its subsidiary Izipay S.A.C., operates in the payments space. IFS states that Izipay is a payments company and provider of products and services related to payments acquirer, correspondent banking and credit cards and electronic wallets payments processing. This positions IFS in the electronic payments value chain, from acquiring services to processing card and wallet transactions.

Geographic footprint and listings

IFS reports that its main operating activities are focused on Peru, with additional geographic exposure through Inteligo and, as noted in earlier descriptions, operations that include Panama. The company’s shares are traded on the Lima Stock Exchange and the New York Stock Exchange, and it files annual reports on Form 20-F and current reports on Form 6-K with the U.S. Securities and Exchange Commission as a foreign private issuer.

Regulatory reporting and credit ratings

IFS prepares audited consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the International Accounting Standards Board. Its annual reports on Form 20-F include auditors’ opinions on the company’s compliance with internal control over financial reporting. The company also discloses material events and interim results through Form 6-K filings.

Credit rating agencies monitor IFS and its main banking subsidiary. In a disclosed material event, FitchRatings upgraded IFS’s long-term ratings to BBB and affirmed its short-term ratings at F3, while affirming Interbank’s long-term and short-term ratings at BBB and F3, respectively, with a stable outlook. In a separate material event, Standard & Poor’s affirmed IFS’s ratings at BB+ and Interbank’s ratings at BBB-, also with a stable outlook. These ratings provide an external view of the company’s and Interbank’s credit quality and outlook as perceived by major rating agencies.

Business segments and revenue drivers

IFS organizes its activities across four main operating segments: banking, insurance, wealth management and payments. The banking segment centers on loans, credit facilities, deposits and current accounts. The insurance segment focuses on life annuity products with single-premium payment, conventional life insurance products and other retail insurance products. The wealth management segment provides brokerage and investment management services. The payments segment, through Izipay, focuses on payments acquiring, correspondent banking and credit card and electronic wallet payments processing. According to the company, these segments collectively serve retail customers and commercial clients, primarily in Peru.

Regulatory status and exchange compliance

IFS states that, by filing its annual reports on Form 20-F, it complies with its reporting obligations with the SEC and the New York Stock Exchange. The company also notes that shareholders may request hard copies of its annual reports, including audited consolidated financial statements. Regular earnings conference calls and webcasts are announced via press releases, reflecting the company’s practice of providing periodic financial updates to investors and analysts.

FAQs about Intercorp Financial Services Inc. (IFS)

• What does Intercorp Financial Services Inc. do?
  IFS is a financial services holding company that, through its subsidiaries, provides banking, insurance, wealth management and payments services, primarily in Peru.
• Where is Intercorp Financial Services Inc. listed?
  IFS states that it has securities listed on the Lima Stock Exchange and the New York Stock Exchange, where it trades under the symbol IFS.
• What are the main subsidiaries of IFS?
  According to the company, its main subsidiaries are Banco Internacional del Perú, S.A.A.-Interbank, Interseguro Compañía de Seguros, S.A., Inteligo Group Corp. and Procesos de Medios de Pago S.A. and its subsidiary Izipay S.A.C.
• What services does Interbank provide within IFS?
  Interbank is described as a full-service bank that offers general banking services to retail and commercial customers, including loans, credit facilities, deposits and current accounts.
• What types of insurance products does Interseguro offer?
  Interseguro’s activities include annuities, individual life insurance, bank assurance and direct sale of retail insurance products, including products that cover the Peruvian mandatory traffic accident insurance.
• How does Inteligo contribute to IFS’s business?
  Inteligo provides wealth management services through Inteligo Bank Ltd. and Interfondos and offers brokerage services through Inteligo SAB, giving IFS exposure to investment and brokerage activities.
• What role does Izipay play in the IFS group?
  Izipay operates as a payments company that provides products and services related to payments acquirer, correspondent banking and credit cards and electronic wallets payments processing.
• Which accounting standards does IFS use for its financial statements?
  IFS reports that its consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the International Accounting Standards Board.
• How does IFS communicate its financial results?
  The company announces earnings conference calls and video webcasts for its quarterly and annual results and files related information, including interim results and management discussion and analysis, through Form 6-K and Form 20-F filings.
• What do credit rating agencies say about IFS?
  In disclosed material events, FitchRatings upgraded IFS’s long-term ratings to BBB and affirmed short-term ratings at F3, while Standard & Poor’s affirmed IFS’s ratings at BB+. Both agencies indicated a stable outlook for IFS and Interbank.