Intercorp Financial Services Inc (NYSE:IFS) stock rose 4.83% (As on August 12, 11:23:24 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY25. Profits increased by S/ 293.4 million, primarily driven by a S/ 211.7 million rise in other income, mainly associated with higher mark-to-market valuations from the wealth management business and the holding company. The increase also reflects a S/ 166.0 million reduction in provision expenses, a S/ 22.8 million growth in net interest and similar income, and a S/ 19.7 million increase in fee income. These positive effects were partially offset by a S/ 76.6 million increase in income tax expenses, a S/ 69.9 million rise in other expenses, and a S/ 12.6 million decline in insurance results.

Moreover, the S/ 22.8 million increase in net interest income was primarily driven by a S/ 44.7 million reduction in interest expenses, partially offset by a S/ 21.9 million decline in interest income. The lower interest expenses reflect a 125 basis point decrease in the central bank’s reference rate, as well as the efforts to secure more efficient funding. On the other hand, the decrease in interest income was mainly attributable to a shift in the credit portfolio composition, consistent with prevailing market trends. The S/ 19.7 million increase in fee income was mainly driven by higher revenues from the banking business, supported by greater transactionality among the customers. In addition, the wealth management business also contributed to the increase, in line with a 14% growth in assets under management

IFS in the second quarter of FY25 has reported the adjusted earnings per share of $5, beating the analysts’ estimates for the adjusted earnings per share of $3.86. The company had reported the adjusted revenue of $1.68 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $1.42 billion. Interbank’s profit was S/ 328.1 million in 2Q25, a decrease of S/ 14.7 million, or 4.3% QoQ, and an increase of S/ 107.5 million, or 48.7% YoY. The YoY growth in interest-earning assets was attributed to an increase of 26.7% in cash and due from banks and inter-bank funds and a 5.0% increase in loans; partially offset by a 2.4% decrease in financial investments. The bank’s total funding increased by 5.2% YoY, below the 6.6% growth in interest-earning assets. As of June 30, 2025, the proportion of deposits and obligations to total funding was 80.4%, higher than the 78.8% reported as of June 30, 2024.