Intercorp Financial Services Inc.: Q2 2025 Earnings Forecast

Peru-based Intercorp Financial Services Inc. (IFS) is expected to release its financial results for the second quarter of 2025 on August 11. Analysts anticipate a year-over-year increase in the company’s quarterly earnings.

Recent Quarterly Performance

In the last quarter, IFS experienced a boost in its financial results thanks to rising revenues. However, challenges arose from a higher provision for credit losses and increased expenses.

Intercorp Financial Services has a consistent record of surpassing earnings expectations. Its earnings have beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 17.26%.

Earnings Projections for IFS

The consensus estimate for IFS’s earnings is set at $1.07 per share, which is unchanged over the past week. This figure suggests a remarkable 62.1% increase compared to the earnings recorded in the same quarter last year.

Key Factors Influencing IFS’s Q2 Earnings

Revenue Dynamics

A substantial part of IFS’s revenue comes from spread income. In May 2025, the Central Reserve Bank of Peru unexpectedly slashed its benchmark interest rate by 25 basis points to 4.50%. With the economy continuing to grow, the lower interest rates are likely to have encouraged loan demand in the upcoming reports.

Additionally, IFS is expected to have seen a consistent decline in deposit costs. Consequently, the net interest and similar income is projected to rise in the second quarter. The company’s net interest margin may have also expanded as deposits were repriced at lower rates.

Furthermore, due to favorable performances in the equity market over the second quarter, IFS likely gained from robust asset inflows. This growth is believed to have positively impacted its assets under management and, consequently, its wealth management services. An increase in commissions from banking and credit card activities probably led to a rise in net fee income from financial services during this period.

Expense Trends

Expenses are anticipated to remain heightened due to increased salaries, employee benefits, and administrative costs. Furthermore, IFS is heavily investing in digital transformation, likely leading to an uptick in associated expenses.

Insights from the Zacks Model for IFS

According to our quantitative analysis, we cannot definitively predict an earnings beat for IFS this quarter. The model lacks the optimal combination of essential factors—positive Earnings ESP and a Zacks Rank of #3 (Hold) or better.

Earnings ESP

The Earnings ESP for IFS currently stands at 0.00%.

Zacks Rank

At the moment, the company holds a Zacks Rank of #3.

Peer Performance Analysis

Itau Unibanco Holding S.A.

Itau Unibanco Holding S.A. (ITUB) reported recurring managerial results totaling R$21.7 billion ($3.94 billion) for the first half of 2025, reflecting an 8% year-over-year increase. The positive results were bolstered by heightened revenues and an expansion in the managerial financial margin. Nevertheless, rising non-interest expenses posed challenges.

HSBC Holdings

On the other hand, HSBC Holdings (HSBC) unveiled a pre-tax profit of $6.33 billion for the second quarter of 2025, marking a 29% decline from the same quarter last year. Diminished revenues, elevated expected credit losses, and increased overall expenses negatively impacted HSBC’s results.

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By focusing on the dynamics of earnings, revenue growth, and expenses, an insightful analysis emerges surrounding Intercorp Financial Services and its standing in the financial industry. The outlook for this Peru-based institution remains promising, with the potential for ongoing growth despite the prevailing market challenges faced by its peers.