Intercorp Financial Services to Report Q2 Earnings: What's in Store?

Peru-based Intercorp Financial Services Inc. IFS is slated to report second-quarter 2025 results on Aug. 11. The company’s quarterly earnings are expected to have increased on a year-over-year basis.

In the last reported quarter, IFS’ results benefited from higher revenues. However, a rise in provision for credit losses and higher expenses were spoilsports.

Intercorp Financial Services has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters and missed once, with the average beat being 17.26%.
 

Intercorp Financial Services Inc. Price and EPS Surprise

Intercorp Financial Services Inc. price-eps-surprise | Intercorp Financial Services Inc. Quote

The consensus estimate for Intercorp Financial Services’ earnings is pegged at $1.07 per share, which has remained unchanged in the past seven days. This indicates a jump of 62.1% from the year-ago quarter’s reported number.

Key Factors to Influence IFS’ Q2 Earnings

Revenues: IFS generates a major portion of its revenues from spread income. In May 2025, in a surprise move, Peru's Central Reserve Bank cut its benchmark interest rate by 25 basis points to 4.50%. With economic growth remaining decent, lower rates are expected to have supported loan demand in the to-be-reported quarter.

Additionally, Intercorp Financial Services is likely to have witnessed a steady decline in deposit costs. As such, the company’s net interest and similar income is expected to have risen in the second quarter. Likewise, the company’s net interest margin is likely to have expanded as deposits reprice at a lower rate.

Given the decent equity market performance in the second quarter, Intercorp Financial Services likely benefited from strong asset inflows, driving growth in its assets under management. This, in turn, is expected to have supported its wealth management operations. Along with higher commissions from banking services and credit card activity, this likely contributed to an increase in net fee income from financial services during the quarter.

Expenses: Higher salaries and employee benefits costs and administrative expenses are expected to have kept the expense base elevated in the second quarter. Also, as Intercorp Financial Services is heavily investing in digitizing operations, expenses related to this effort are likely to have increased.

What the Zacks Model Unveils for IFS

Our quantitative model cannot provide a conclusive prediction of an earnings beat for IFS this time. This is because it lacks the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for IFS is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of IFS’ Peers

Itau Unibanco Holding S.A. ITUB reported recurring managerial results of R$21.7 billion ($3.94 billion) for the first half of 2025, which increased 8% year over year.

Higher revenues and an increase in managerial financial margin supported the results. However, a rise in non-interest expenses acted as a spoilsport for ITUB.

HSBC Holdings HSBC reported second-quarter 2025 pre-tax profit of $6.33 billion, which declined 29% from the prior-year quarter.

A fall in revenues, higher expected credit losses and other credit impairment charges and higher expenses hurt HSBC’s results.

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This article originally published on Zacks Investment Research (zacks.com).

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