Q2 2024 Intercorp Financial Services Inc Earnings Call

August 15, 2024

At that time instructions will be given as to the procedure to follow if you would like to ask a question also you can submit a question or questions online at any time today using the window on the webcast and they will be answered after the presentation. During the question and answer session.

Operator: We will open the floor for questions. At that time, instructions will be given as to the procedure to follow if you would like to ask a question. Also, you can submit questions online at any time today using the window on the webcast and they will be answered after the presentation during the question and answer session. Simply type your question in the box and click submit question.

Unknown Executive: We will open the floor for questions.

Unknown Executive: We will open the floor for questions. At that time instructions will be given as to the procedure to follow if you would like to ask a question. Also, you can submit questions online at any time today using the window on the webcast and they will be answered after the presentation during the question and answer session. Simply type your question in the box and click submit question.

Operator: We will open the floor for questions. At that time, instructions will be given as to the procedure to follow if you would like to ask a question. Also, you can submit questions online at any time today using the window on the webcast, and they will be answered after the presentation during the question-and-answer session. Simply type your question in the box and click submit question.

Unknown Executive: At that time instructions will be given as to the procedure to follow if you would like to ask a question.

Alonso Arambur: So I guess it's going to be a decrease in what we are expecting in our estimates is just a stabilization and not yet a growth up until year end.

Unknown Executive: Also, you can submit questions online at any time today using the window on the webcast and they will be answered after the presentation during the question and answer session.

Michaela Casasa: First half in 2024 ROE is 8.4%, still below midterm range that's recovering to 11.2% in the quarter. With a better cost of risk and the year end ROE should be above 12% as guidance.

Simply type your question in the box and click submit question. It is now my pleasure to turn the call over to Mr. Ivan Peel from inspire group, Sir you may begin.

Unknown Executive: Simply type your question in the box and click submit question.

Operator: It is now my pleasure to turn the call over to Mr. Ivan Peel from Inspire Group. Sir, you may begin. Thank you, operator. And good morning, everyone. On today's call, Intercorp Financial Services will discuss its second quarter 2024 earnings. We are very pleased to have with us. Mr. Felipe, sorry, Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services. Ms. Michela Casasa, Chief Financial Officer, Intercorp Financial Services, Mr. Carlos Tory, Chief Executive Officer, Interbank. Mr. Gonzalo Basadre, Chief Executive Officer, InterSeguro.

Ivan Peele: It is now my pleasure to turn the call over to Mr. Ivan Peele from Inspire Group so you may begin.

Ivan Peele: It is now my pleasure to turn the call over to Mr. Ivan Peele from Inspire Group so you may begin. Thank you operator and good morning, everyone. On today's call, Intercorp Financial Services will discuss its second quarter, 2024 earnings.

Ivan Peele: It is now my pleasure to turn the call over to Mr. Ivan Peele from Inspire Group, so you may begin. Thank you, operator, and good morning, everyone. On today's call, Intercorp Financial Services will discuss its second quarter, 2024 earnings. We are very pleased to have with us, Mr. Felipe, sorry, Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services; Ms. Michaela Casasa, Chief Financial Officer, Intercorp Financial Services. Mr. Carlos, Tori, Chief Executive Officer, Interbank; Mr. Gonzalo Vasadre, Chief Executive Officer, Inter Ciguro; Mr. Bruno Ferrecho, Chief Executive Officer, Intelligo. They will be discussing the results that were distributed by the company yesterday.

Ivan Peel: Thank you operator, and good morning, everyone on today's call Intercorp financial services will discuss its second quarter 2020 for earnings.

Ivan Peel: Mr. Bruno Ferrecho, Chief Executive Officer, IntelliGov. They will be discussing the results that were distributed by the company yesterday. There is also a webcast video presentation to accompany the discussion during this call. If you didn't receive a copy of the presentation or the earnings report, they are now available on the company's website, ifs.com.pe. Otherwise, if you need any assistance today, please call Inspire Group in New York at 646-940-8843.

Unknown Executive: Thank you operator and good morning, everyone.

Unknown Executive: On today's call, Intercorp Financial Services will discuss its second quarter, 2024 earnings.

We are very pleased to have with US Mr. Philippe sorry, Luis Felipe Castellanos, Chief Executive Officer, Intercorp financial services Mrs.

Luis Felipe Castellanos: We are very pleased to have with us, Mr. Felipe, sorry, Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services, Ms. Michaela Casasa, Chief Financial Officer, Intercorp Financial Services.

Unknown Executive: We are very pleased to have with us, Mr. Felipe, sorry, Luis Felipe Castellanos, Chief Executive Officer, Intercorp Financial Services, Ms. Michaela Casasa, Chief Financial Officer, Intercorp Financial Services.

Mackellar, Casassa: Mackellar, Casassa, Chief Financial Officer, Intercorp financial services.

Mackellar, Casassa: Mr. Carlos Torres Chief Executive Officer Interbank.

Unknown Executive: Mr. Carlos, Tori, Chief Executive Officer, Interbank, Mr. Gonzalo Vasadre, Chief Executive Officer, Inter Ciguro, Mr. Bruno Ferrecho, Chief Executive Officer, Intelligo.

Unknown Executive: Mr. Carlos, Tori, Chief Executive Officer, Interbank, Mr. Gonzalo Vasadre, Chief Executive Officer, Inter Ciguro, Mr. Bruno Ferrecho, Chief Executive Officer, Intelligo. They will be discussing the results that were distributed by the company yesterday. There is also a webcast video presentation to accompany the discussion during this call. If you didn't receive a copy of the presentation or the earnings report, they are now available on the company's website, ifs.com.pe. Otherwise, if you need any assistance today, please call Inspire Group in New York at 646-940-8843.

Speaker Change: Mr. Gonzalo <unk>, Chief Executive Officer <unk> <unk>.

Mr. Bruno <unk>, Chief Executive Officer until they go.

Speaker Change: They will be discussing the results that were distributed by the company yesterday.

Unknown Executive: They will be discussing the results that were distributed by the company yesterday. There is also a webcast video presentation to accompany the discussion during this call.

Speaker Change: Also a webcast video presentation to accompany the discussion during this call.

Ivan Peele: There is also a webcast video presentation to accompany the discussion during this call. If you didn't receive a copy of the presentation or the earnings report, they are now available on the company's website, ifs.com.pe. Otherwise, if you need any assistance today, please call Inspire Group in New York at 646-940-8843. I would like to remind you that today's call is for investors and analysts only. Therefore, questions from the media will not be taken. Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's future performance, or financial results.

Speaker Change: If you didn't receive a copy of the presentation or the earnings report. They are now available on the company's website.

Unknown Executive: If you didn't receive a copy of the presentation or the earnings report, they are now available on the company's website, ifs.com.pe.

Speaker Change: S Dot com Dot p/e.

Otherwise if you need any assistance today, please call inspire group in New York at 6469408.

Unknown Executive: Otherwise, if you need any assistance today, please call Inspire Group in New York at 646-940-8843.

Speaker Change: Fourthly.

I would like to remind you that today's call is for investors and analysts only therefore questions from the media will not be taken.

Unknown Executive: I would like to remind you that today's call is for investors and analysts only.

Unknown Executive: I would like to remind you that today's call is for investors and analysts only. Therefore, questions from the media will not be taken. Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, statements made are based on several assumptions and factors that could change, causing actual results to materially differ from the current expectations. For a complete note on forward-looking statements, please refer to the earnings presentation and report issued yesterday.

Operator: I would like to remind you that today's call is for investors and analysts only, therefore questions from the media will not be taken. Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, statements made are based on several assumptions and factors that could change. Causing actual results to materially differ from the current expectation.

Unknown Executive: Therefore, questions from the media will not be taken.

Please be advised that forward looking statements may be made during this conference call.

Unknown Executive: Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, statements made are based on several assumptions and factors that could change, causing actual results to materially differ from the current expectations.

Speaker Change: These do not account for future economic circumstances industry conditions, the company's future performance or financial results as such statements made are based on several assumptions and factors that could change, causing actual results to materially materially differ from the current.

Unknown Executive: As such, statements made are based on several assumptions and factors that could change, causing actual results to materially differ from the current expectations.

Speaker Change: Spectation.

Speaker Change: For a complete note on forward looking statements. Please refer to the earnings presentation and report issued yesterday.

Unknown Executive: For a complete note on forward-looking statements, please refer to the earnings presentation and report issued yesterday.

Speaker Change: It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercorp financial services for his opening remarks Mr.

Luis Felipe Castellanos: It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercord Financial Services for his opening remarks.

Luis Felipe Castellanos: It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercord Financial Services for his opening remarks. Mr. Castellanos, please go ahead, sir. Thank you.

Luis Felipe Castellanos: It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos, Chief Executive Officer of Intercord Financial Services, for his opening remarks. Mr. Castellanos, please go ahead, sir. Thank you. Good morning, all, and welcome to our second quarter of 2024 earnings call. I want to thank everybody for attending our call today.

Operator: For a complete note on forward-looking statements, please refer to the earnings presentation and report issued yesterday. It is now my pleasure to turn the call over to Mr. Luis Felipe Castellanos. Chief Executive Officer of Intercorp Financial Services for his opening remarks. Castellanos, please go ahead.

Speaker Change: Mr. Castellanos. Please go ahead Sir.

Luis Felipe Castellanos: Mr. Castellanos, please go ahead, sir.

Speaker Change: Thank you good morning, all and welcome to our second quarter 2000 journey for any school I want to thank everybody for attending our call today.

Luis Felipe Castellanos: Thank you. Good morning all and welcome to our second quarter 2024 earnings call. I want to thank everybody for attending our call today. I would like to start by addressing the macro situation in our country. In the first half of 2024, economic growth showed better numbers, posting a 5.3% growth in April and 5% in May, mainly due to a recovery in the fishing industry with associated services. Also, there's a rebound effect over the first half of 2033.

Luis Felipe Castellanos: Thank you.

Michaela Casasa: We anticipate that the ROE of Interbank and Intelligo should be higher in the second half of the year and we continue to target our midterm profitability ROE of 18%.

Alonso Arambur: Just to compliment that Alonso or just summarize, we have been issuing more cards in the last couple of months. So growing our portfolio.

Luis Felipe Castellanos: Good morning all and welcome to our second quarter of 2024 earnings call. I want to thank everybody for attending our call today.

Luis Felipe Castellanos: Good morning all and welcome to our second quarter of 2024 earnings call.

Alonso Arambur: And the usage has been good.

Speaker Change: I would like to start by addressing the macro situation in our country.

Alonso Arambur: So activation is up and clients are taking the value proposition.

Luis Felipe Castellanos: I would like to start by addressing the macro situation in our country. In the first half of 2024, economic growth showed better numbers, posting a 5.3% growth in April and 5% in May, mainly due to a recovery in the fishing industry with associated services. Also, we won't affect over the first half of 2023. In terms of inflation, it has decreased consistently as an April posted at 2.5% number, being the lowest among other countries in the region, on that month, and in May, the inflation was 2% continuing its downward trend. Better market sentiment from consumers and businesses did not expect that GDP will be at around 3% plus for this year, which is a recovery compared to last year.

Luis Felipe Castellanos: I would like to start by addressing the macro situation in our country. In the first half of 2024, economic growth showed better numbers, posting a 5.3% growth in April and 5% in May, mainly due to a recovery in the fishing industry with associated services. Also, we won't affect over the first half of 2023. In terms of inflation, it has decreased consistently, as an April posted at 2.5% number, being the lowest among other countries in the region on that month, and in May, the inflation was 2%, continuing its downward trend. Better market sentiment from consumers and businesses did not expect that GDP will be at around 3% plus for this year, which is a recovery compared to last year.

Speaker Change: In the first half of 2020 for economic growth show better numbers, posting a five 3% growth in April.

Speaker Change: Percent in May mainly due to a recovery in the fishing industry with associated services.

Speaker Change: Also does that rebound effect over the first half of 2033.

Speaker Change: In terms of inflation each are decreasing.

Luis Felipe Castellanos: In terms of inflation, it has decreased consistently, as in April posted a 2.5% number, being the lowest among other countries in the region on that month, and in May, the inflation was 2%, continuing its downward trend.

Speaker Change: Insistently.

Speaker Change: April posted a two 5% number being the lowest among other countries in the region on Doug months on in May.

Speaker Change: <unk> was 2% continuing its downward trend.

Speaker Change: Better market sentiment from consumers and businesses lead us to expect that GDP will be on around 3% plus for this year, which is a recovery.

Luis Felipe Castellanos: Better market sentiment from consumers and businesses lead us to expect that GDP will be at around 3% plus for this year, which is a recovery compared to last year. Under this scenario, IFS is showing improvement in its results. Our core banking franchise continues to advance with strong growth in commercial banking and improvement in risk indicators. Although we still face volatility in our investment operations, overall, we continue in our recovery path. Interbank, we have been able to grow our market shares in loans and deposits, growing significantly in commercial banks.

Speaker Change: <unk> two last year.

Speaker Change: Under this scenario <unk> is showing improvement in its results our core banking franchise continues to advance with strong growth in commercial banking.

Luis Felipe Castellanos: Under this scenario, IFS is showing improvement in its results. Our core banking franchise continues to advance with a strong growth in commercial banking and improvement in risk indicators. Although we still face volatility in our investment operations, overall, we continue in our recovery path. At Interbank, we have been able to grow our market shares in loans and deposits, growing significantly in commercial banking, now consolidating as a third largest bank in mid-sized companies and in total deposits. Even though cost of risk remains high, there is clear improvement showing a downward trend as we expected. Finally, Interbank and EZP continue working to create synergies, while PLEAN continues to engage more users.

Luis Felipe Castellanos: Under this scenario, IFS is showing improvement in its results. Our core banking franchise continues to advance with a strong growth in commercial banking and improvement in risk indicators. Although we still face volatility in our investment operations, overall, we continue in our recovery path. At Interbank, we have been able to grow our market shares in loans and deposits, growing significantly in commercial banking, now consolidating as a third largest bank in mid-sized companies and in total deposits. Even though the cost of risk remains high, there is clear improvement showing a downward trend, as we expected. Finally, Interbank and EZP continue working to create synergies, while PLEAN continues to engage more users.

Michaela Casasa: Long growth of around 4.5% is aligned with the guidance and expect to remain aligned throughout the year, supported by strong growth from commercial banking of the financial system, then gaining market share.

Speaker Change: Improvements in risk indicators.

Speaker Change: We still face volatility in our investment operations overall, we continue in our recovery path.

Speaker Change: At interbank, we have been able to grow our market shares in loans and deposits growing significantly in commercial banking.

Speaker Change: Now consolidated as the third largest bank in mid sized companies in total deposits.

Luis Felipe Castellanos: Now consolidating as the third largest bank in mid-sized companies and in total deposits. Even though cost of risk remains high, there is clear improvement, showing a downward trend, as we expected. Finally, Interbank and EasyPay continue working to create synergies while Plin continues to engage more users.

Speaker Change: Even though cost of risk remains high.

Speaker Change: There is a clear improvement showing a downward trend as we expect.

Speaker Change: Finally, interbank at ECP continued working to create synergies will clean continues to engage more users.

Speaker Change: Interestingly, though we have seen relevant growth in premiums mainly driving of doing this on individual life maintaining market leadership in.

Luis Felipe Castellanos: At Interseguro, we have seen relevant growth in premiums, mainly in private identities and individual life, maintaining market leadership in annulities. Our wealth management business has had positive quarter in its core business, as the assets and the management have reached an all-time high.

Luis Felipe Castellanos: At Interseguro, we have seen relevant growth in premiums, mainly in private identities and individual life, maintaining market leadership in annuities. Our wealth management business has had a positive quarter in its core business, as the assets and the management have reached an all-time high.

Luis Felipe Castellanos: Interseguro, we have seen relevant growth in premiums, mainly in private annuities and individual life, maintaining market leadership in annuities. Our wealth management business has had positive quarter in its core business as the assets under management have reached an all-time high. As you all know, Our strategic priority continues to be to achieve digital excellence for our customers. We want to become the leading digital platform with profitable growth. We want to create the best EDA experience for our customers, and to boost our core businesses by enhancing seniors among our companies in our platform and continuously develop our analytical capability. Always leveraging on the best talent.

Speaker Change: Annuities.

Speaker Change: Our wealth management business has had positive quarter in its core business as the assets under management reached an all time high.

Speaker Change: As you all know our.

Speaker Change: Our strategic priority continues to be to achieve excellence for our customers, we want to become the leading ddos platform with profitable growth.

Luis Felipe Castellanos: As you all know, our strategic priority continues to be to achieve data excellence for our customers. We want to become the leading digital platform with profitable growth. We want to create the best digital experience for our customers and to boost our core businesses by enhancing synergies among our companies in our platform and continuously develop our analytical capabilities, always leveraging on the best talent. To this end, we have invested in building a leading digital proposition, adaptable and scalable that is being rapidly adapted by potential and current customers, and we're offering 100 percential products and services to almost all segments.

Speaker Change: We want to create the best user experience for our customers.

Speaker Change: To boost our core businesses by enhancing seniors.

Speaker Change: Our companies in our platform and continuously develop our analytical capabilities.

Speaker Change: Leveraging on the best talent.

Speaker Change: To this end we have invested in building, a leading a leading ddos proposition adaptable and scalable that is being rapidly adopted by our board.

Luis Felipe Castellanos: To this end, we have invested in building a leading digital proposition, adaptable and scalable, that is being rapidly adapted by potential and current customers, and we are offering 100% digital products and services to almost all sectors. We remain confident about IFS going forward as we monitor the macro conditions while we continue to build on our long term strategy with emphasis on our key strategic priorities, which, as you know, are growth. Digital Excellence, and Focus on Key Business.

Potential and current customers.

Speaker Change: Turning 100% digital products and services to almost all segments.

Speaker Change: We remain confident about IHS outlook going forward as we monitor the macro conditions, while we continue to build on our long term strategy with emphasis on our key strategic priorities, which as you know our growth.

Luis Felipe Castellanos: We remain confident about IFSR going forward as we monitor the macro conditions, while we continue to build on our long-term strategy with emphasis on our key strategic priorities, which, as you know, are growth, digital excellence, and focus on key businesses. Finally, we wanted to share with you the award granted to Interbank from EuroMoney, as we have been named Peru's Best Bank, Best Digital Bank and Best Bank for Corporate Responsibility. This type of recognitions make us proud, but also tells us that we continue in the right path.

Speaker Change: These are excellent focus on key businesses.

Speaker Change: Finally, we wanted to share with you the award granted to interbank from Euromoney.

Luis Felipe Castellanos: Finally, we wanted to share with you the award granted to Interbank from EuroMoney, as we have been named Peru's best bank, best digital bank and best bank for corporate responsibility. This type of recognitions make us proud, but also tells us that we continue in the right path.

Luis Felipe Castellanos: Finally, we wanted to share with you the award granted to Interbank from Euromoney as we have been named Peru's Best Bank, Best Digital Bank, and Best Bank for Corporate Responsibility. This type of recognitions make us proud, but also tells us that we continue in the right path. Now, let me pass it on to Michela for further explanation of our quarterly results. Thank you. Thank you, Felipe. Good morning and welcome again.

So we have been named the rules based bank <unk> Bank and best Bank for corporate responsibility.

These type of recognitions make us route but also tells US that we continue in the right in the right path now.

Speaker Change: Now, let me pass it onto Micaela for further explanation of our quarterly results. Thank you.

Alonso Arambur: But if Michela mentioned, there have been low use of financing on those cards.

Michaela Kasasa: Now, let me pass it on to Michaela for further explanation of our color review results. Thank you. Thank you, Refelipe.

Micaela: Thank you recently paid good morning, and welcome again to begin I would like to review the macroeconomic outlook.

Michela Casasa: To begin, I would like to review the macroeconomic outlook for Peru. On slide two, complementing what Luis Felipe just mentioned, we see signs of improvement in the macro environment. As GDP for the second quarter, and specifically in the month of April and May, grew more than 5%, above market expectations. It is estimated economic activity accumulated 2.7% growth in the first half of this year. This was mainly due to the recovery of the agricultural and fishing industries with associated services.

Luis Felipe Castellanos: I want to thank everybody for attending our call today.

Michaela Kasasa: Good morning and welcome again. To begin, I would like to review the macroeconomic outlook for Peru. On flight 2, complementing what Luis Felipe just mentioned, we see signs of improvement in the macro environment, as GDP for the second quarter and specifically in the month of April and May, grew more than 5% above market expectations. It is estimated that economic activity accumulated 2.7% growth in the first half of this year. This was mainly due to the recovery of the agricultural and fishing industries with associated services.

Michaela Kasasa: Good morning and welcome again. To begin, I would like to review the macroeconomic outlook for Peru. On flight 2, complementing what Luis Felipe just mentioned, we see signs of improvement in the macro environment, as GDP for the second quarter and specifically in the month of April and May grew more than 5% above market expectations. It is estimated that economic activity accumulated 2.7% growth in the first half of this year. This was mainly due to the recovery of the agricultural and fishing industries with associated services. Additionally, pension funds withdraws and the availability of severance indemnity deposits contributed to activate internal consumption.

Michaela Casasa: Lim for Interbank was 5.3% during the first half of the year. We expect it to slightly recover during the year as cost of funds decreased, we continue in line with lower market rates and the efforts previously described.

Micaela: On slide two complementing what <unk> just mentioned, we see signs of improvement in the macro environment and GDP for the second quarter and specifically in the months of April and May grow.

Micaela: More than 5% above market expectations. It is estimated economic activity accumulated to 7% growth in the first half of this year.

Luis Felipe Castellanos: Also, we won't affect over the first half of 2023.

Micaela: This was mainly due to the recovery of the agricultural and fishing industry with associated services.

Micaela: Additionally, pension funds with duals and the availability of severance indemnity deposits contributed to activate internal consumption.

Michela Casasa: Additionally, pension funds withdrawals and the availability of severance indemnity deposits contributed to activate internal consensus. In that line, expected growth remains biased to the upside, as we expect GDP to grow 3% in 2024. This considers the base effect of 2023, the improvement of public investment, some positive impacts from private investment, and the recovery of labor-intensive activities. On the other hand, Central Bank has reduced reference rate by 200 basis points from 7.75 at its peak to 5.5% as of today. Inflation is already within its target range of 2.3% in June with expectations anchored at 2.2%.

Michaela Kasasa: Additionally, pension funds withdraws and the availability of severance indemnity deposits contributed to activate internal consumption. In that line, expected growth remains biased to the upside, as we expect GDP to grow 3% in 2024. This considers the base effect versus 2023. The improvement of public investment, some positive impact from private investment and the recovery of labor intensive activities. On the other hand, central bank has reduced reference rate by 200 basis points from 7.75 at its peak to 5.5% as of today.

Micaela: <unk> nine expected globally.

Michaela Kasasa: In that line, expected growth remains biased to the upside, as we expect GDP to grow 3% in 2024. This considers the base effect versus 2023. The improvement of public investment, some positive impact from private investment, and the recovery of labor intensive activities. On the other hand, the central bank has reduced the reference rate by 200 basis points from 7.75% at its peak to 5.5% as of today. Inflation is already within its target range of at 2.3% in June, with expectations anchored at 2.2%. This positions the Peruvian central bank among the first central banks to successfully control inflation.

Micaela: As to the appetite as we expect GDP to grow 3% in 2024.

Micaela: This considers the base effect for 2023, the improvement of product investment some positive impacts from private investment and the recovery of labor intensive activity.

Speaker Change: On the other hand Central Bank has reduced reference rate by 200 basis points from $7 75 to five 5% as of today.

Speaker Change: Inflation is already within its target range of two 3% in June with expectations anchor at two 2%.

Luis Felipe Castellanos: In terms of inflation, it has decreased consistently as an April posted at 2.5% number, being the lowest among other countries in the region, on that month, and in May, the inflation was 2% continuing its downward trend.

Michaela Kasasa: Inflation is already within its target range of at 2.3% in June, with expectations anchored at 2.2%. This positions the Peruvian central bank among the first central banks to successfully control inflation. Additionally, the exchange rate continues to be the most stable currency in the region. On slide 3, consistent with the previous life, we observe progress as domestic demand, consumer confidence and business trust materialize a change in their trajectory. As a paper, we have seen growth in formal employment, especially in sectors linked to consumption, and growth in real formal wages.

This positions the Peruvian Central bank, among the first central banks to successfully control inflation.

Michela Casasa: This positions the Peruvian Central Bank among the first central banks to successfully control inflation. Additionally, the exchange rate continues to be the most stable currency in the region. On slide three, consistent with the previous slide, we observe progress as domestic demand, consumer confidence, and business trust materialize a change in their trajectory. As of April, we have seen growth in formal employment, especially in sectors linked to consumption and growth in real formal wages. During June, American increased 4.2% in real terms, which contributed to drive internal demand.

Speaker Change: Additionally, the exchange rate continues to be the most stable currency in the region.

Michaela Kasasa: Additionally, the exchange rate continues to be the most stable currency in the region. On slide 3, consistent with the previous life, we observe progress as domestic demand, consumer confidence, and business trust materialize a change in their trajectory. As a paper, we have seen growth in formal employment, especially in sectors linked to consumption, and growth in real formal wages. During June, the American increased 4.2% in real terms, which contributed to direct internal demand. Additionally, private investment accumulated two consecutive positive quarters during the first half of 2024. As so, the expectation for private investment in 2024 surpassed previous estimates, reflecting some optimism.

Speaker Change: On slide three.

Speaker Change: Consistent with the previous slide we observe progress as domestic demand.

Luis Felipe Castellanos: Better market sentiment from consumers and businesses did not expect that GDP will be at around 3% plus for this year, which is a recovery compared to last year. Under this scenario, IFS is showing improvement in its results.

Speaker Change: Consumer confidence and business stress materialize a change in their trajectory.

Speaker Change: As a faithful discussing growth informal employment, especially in sectors linked to consumption and growth in reaffirming wages.

Speaker Change: During June.

Speaker Change: <unk> increased four 2% in real terms, which contributed to drive internal demand.

Michaela Kasasa: During June, the American increased 4.2% in real terms, which contributed to direct internal demand. Additionally, private investment accumulated two consecutive positive quarters during the first half of 2024. As so, the expectation for private investment in 2024 surpassed previous estimates, reflecting some optimism. Despite this, the total system consumer loans showed a decrease of 2.1% on a year-to-date basis, and 7% on a year-over-year basis, which indicates that this segment is still not growing.

Speaker Change: Additionally, private investment accumulated two consecutive positive quarters during the first half of 2024.

Michela Casasa: Additionally, private investment accumulated two consecutive positive quarters during the first half of 2024. So the expectation for private investment in 2024 surpassed previous estimates, reflecting some of. Despite this, the total system consumer loans showed a decrease of 2.1% on a year-to-date basis, and 7% on a year-over-year basis, which indicates that this segment is still not growing. However, total system loans increased by 1%, driven by commercial loans and mortgages, which grew 1.6% and 2.8% respectively, reflecting the increase in private and public investment. Moving on.

Speaker Change: So the expectation for private investment in 2024 surpassed previous estimates, reflecting some optimism.

Speaker Change: Despite this the total systemic consumer loans showed a decrease of two 1% on a year to date basis.

Michaela Kasasa: Despite this, the total system consumer loans showed a decrease of 2.1% on a year-to-date basis and 7% on a year-over-year basis, which indicates that this segment is still not growing. However, total system loans increased by 1%, driven by commercial loans and mortgages, which grew 1.6% and 2.8% respectively, reflecting the increase in private and public investment. Moving on, it's in this context that we continue to build on our three key strategic priorities, which are first profitable growth to become a leading digital platform. We continue to grow our customers' base by double digit for all the segments, consistent with the recovery in the macro environment.

Speaker Change: And 7% on a year over year basis, which indicates that this segment is still not growing however.

Speaker Change: However, total system loans increased by 1% driven by commercial loans and mortgages, which grew one 6% and two 8% respectively, reflecting the increase in private and public investments.

Michaela Kasasa: However, total system loans increased by 1% driven by commercial loans and mortgages, which grew 1.6% and 2.8% respectively, reflecting the increase in private and public investment. Moving on, it's in this context that we continue to build on our three key strategic priorities, which are first profitable growth to become a leading digital platform. We continue to grow our customers' base by double digit for all the segments consistent with the recovery in the macro environment.

Speaker Change: Moving on.

Speaker Change: In this context that we continue to build on our three key strategic priorities, which are first profitable growth to become a leading digital platform. We continue to grow our customer base by double digit for all the segments consistent with the recovery in the macro environment.

Alonso Arambur: One part of that has to do with the segments that we're going at, which also is a little bit mentioned, we're going a little bit lower, lower risk.

Michela Casasa: It's in this context that we continue to build on our three key strategic priorities, which are first, profitable growth to become a leading digital platform. We continue to grow our customers base by double digit for all the segments consistent with the recovery in the macro environment. Also, IFS net income more than doubled in the second quarter when compared to the previous one, in line with the important reduction of cost of risk at the banking sector. Second, create the best digital experience.

Alonso Arambur: But also there's been a lot of liquidity in the consumer segment over the last couple of months.

Speaker Change: Also iff's net income more than doubled in the second quarter when compared to the previous one in line with important reduction of cost of risk at the banking sector.

Michaela Casasa: Cost of risk for banking was 4% in the quarter, slightly better than our expectations due to the improvement in the forward looking variables and below our guidance. Also mentioned in previous call.

Alonso Arambur: First, due to CTH, you know, the safe access.

Michaela Kasasa: Also, IFS net income more than double in the second quarter when compared to the previous one, in line with the important reduction of cost of risk at the banking. Second, create the best digital experience as now more than 80% of our retail banking customers are digital and our current NPS for retail banking is 61. Third, we continue to focus on our core businesses with relevant market share in consumer banking loans at 21.8%, total deposits at 13.6%, ranking number three in the Peruvian financial system and in annuities at 31% as market leader. Also, we continue to increase our market share of commercial banking to a 10.2%. And finally, in wealth management asset under management, glue 15% year over year reaching a historically maximum.

Michaela Kasasa: Also, IFS net income more than double in the second quarter when compared to the previous one, in line with the important reduction of cost of risk at the banking. Second, create the best digital experience as now more than 80% of our retail banking customers are digital, and our current NPS for retail banking is 61. Third, we continue to focus on our core businesses with relevant market share in consumer banking loans at 21.8%, total deposits at 13.6%, ranking number three in the Peruvian financial system, and in annuities at 31% as market leader. Also, we continue to increase our market share of commercial banking to a 10.2%.

Second create the best digital experience is now more than 80% of our retail banking customers as digital and our current NPS for retail banking is 61.

Michela Casasa: As now, more than 80% of our retail banking customers are digital, and our current NPS for retail banking is 61. Third, we continue to focus on our core businesses with relevant market share in consumer banking loans at 21.8 percent, total deposits at 13.6 percent, ranking number three in the Peruvian financial system, and in annuities at 31 percent as market leader. Also, we continue to increase our market share of commercial banking to a 10.2% And finally, in wealth management, asset under management grew 15% year over year, reaching a historically maximum. Moving on, we will review four sections of our earnings presentation. Sustainable growth, building a digital platform, key businesses, and finally, some takeaways. Let us start with the first section, which focuses on sustainable growth.

Speaker Change: Third we continue to focus on our core businesses with relevant market share in consumer banking loans at 21, 8% total deposits at 13, 6% ranking number three in the Peruvian financial system and in annuities at 71% as market leader.

Speaker Change: Also we continue to increase our market share of commercial banking to a 10, 2%.

Speaker Change: And finally in wealth management assets under management grew 15% year over year, reaching historically Maxim.

Michaela Kasasa: And finally, in wealth management, assets under management glue 15% year over year, reaching a historically maximum.

Moving on we will renew four sections of our earnings presentation sustainable growth building, a digital platform key businesses and finally some takeaways.

Alonso Arambur: The other is the funds from the AFPs, which have been wearing the middle of that or probably around 60% of the versions have been done.

Michaela Kasasa: Moving on, we will review four sections of our earnings presentation, sustainable growth, building a digital platform, key businesses and finally some takeaways. Let us start with the first section which focuses on sustainable growth. On slide seven, we wanted to share our key messages for the quarter. First, better banking and insurance results drove earnings to grow by two foot quarter over quarter, not only because of a decline in cost of risk, but also due to higher investment results.

Michaela Kasasa: Moving on, we will review four sections of our earnings presentation: sustainable growth, building a digital platform, key businesses, and finally some takeaways. Let us start with the first section which focuses on sustainable growth. On slide seven, we wanted to share our key messages for the quarter. First, better banking and insurance results drove earnings to grow by two foot quarter over quarter, not only because of a decline in cost of risk, but also due to higher investment results. This result in an ROE that has doubled to 11.2% from the previous quarter, with an income of 286 million solid.

Speaker Change: Let us start with the first section which focuses on sustainable growth.

Michaela Casasa: First and not by cost, and we are strictly monitoring and managing them, especially at the bank, which has reached a cost income ratio below 40%. Let me finalize the presentation with some key takeaways.

Alonso Arambur: Raptification is in July is always a very liquid month.

Speaker Change: On slide seven we wanted to share our key messages for the quarter.

Alonso Arambur: And that will continue for a couple of weeks.

Michela Casasa: On slide 7, we wanted to share our key messages for the work. First, better banking and insurance results drove earnings to grow by two-fold quarter over quarter, not only because of a decline in cost of risk, but also due to higher investment. This result in an ROE that has doubled to 11.2% from the previous quarter with a net income of $286 million. Second, cost of risk decreased by 70 basis points on the quarter and more than 120 basis points from the peak of the fourth quarter 23.

Speaker Change: First better banking and insurance results drove earnings to grow by two first quarter over quarter, not only because of a decline in cost of risk, but also due to higher investment results.

Michaela Casasa: First, we have seen improving banking and insurance results, driving earnings recovered.

Alonso Arambur: So it will be interesting to see what happens after that.

Speaker Change: As a result.

Speaker Change: In an ROE in that has doubled to 11, 2% from the previous quarter with a net income of 286 million salaries.

Michaela Kasasa: This result in an ROE that has doubled to 11.2% from the previous quarter with an income of 286 million solid. Second, cost of risk decreased by 70 basis points on the quarter and more than 120 basis points from the peak of the fourth quarter 23. As such, we see better results for Interbank with 4% higher ROE than the previous quarter. Third, the cost of funds continues to improve decreasing 40 basis points year over year and from the previous quarter, outperforming the system average.

Speaker Change: Second cost of risk decreased by 70 basis points on the quarter and more than 120 basis points from the peak of the fourth quarter 2003.

Michaela Kasasa: Second, cost of risk decreased by 70 basis points on the quarter and more than 120 basis points from the peak of the fourth quarter 23. As such, we see better results for Interbank with 4% higher ROE than the previous quarter. Third, the cost of funds continues to improve, decreasing 40 basis points year over year and from the previous quarter, outperforming the system average. This improvement is not only due to the decline in market rate, but also because of a proactive management of efficient funding and enhancing the funding mix. Fourth, we are tactically risking the portfolio, giving current system dynamics, and this is why there has been a significant growth in commercial banking within Pulsome Peru, with over 15% growth year over year in commercial loans.

Speaker Change: Such we see better results for interbank with 4% higher than the previous quarter.

Michela Casasa: As such, we see better results for Interbank with 4% higher ROE than the previous quarter. Third, the cost of funds continues to improve, decreasing 40 basis points year over year and from the previous quarter, outperforming the system average. This improvement is not only due to a declining market rate, but also because of a proactive management of efficient funding, hence enhancing the funding mix. Fourth, we are tactically de-risking the portfolio, given current system dynamics.

Speaker Change: Third the cost of funds continues to improve decreasing 40 basis points year over year and from the previous quarter.

Speaker Change: Following the system average.

Speaker Change: This improvement is not only due to declining market rates.

Michaela Kasasa: This improvement is not only due to the decline in market rate, but also because of a proactive management of efficient funding and enhancing the funding mix. Fourth, we are tactically risking the portfolio, giving current system dynamics and this is why there has been a significant growth in commercial banking with in Pulsome Peru, with over 15% growth year over year in commercial loans. Additionally, we have gained more than 80 basis points of market share in this segment over the past year, highlighting mid-sized companies that we have consolidated their positions as number three reaching 12.3% market share.

Speaker Change: Also because of our proactive management of efficient funding hence.

Enhancing the funding mix.

Speaker Change: Fourth we are tactically derisking the portfolio given current system dynamics and this is why there has been a significant growth in commercial banking with improved <unk> with.

Luis Felipe Castellanos: Our core banking franchise continues to advance with a strong growth in commercial banking and improvement in risk indicators.

Michaela Casasa: Second, there is a significant growth in commercial banking loans.

Alonso Arambur: We keep constable with the risk decisions that we have made.

Michela Casasa: And this is why there has been a significant growth in commercial banking with Impulso Mi Perú, with over 15% growth year over year in commercial loans. Additionally, we have gained more than 80 basis points of market share in this segment over the past year, highlighting midsize companies that we have consolidated their position as number three, reaching 12.3% market share. Fifth, there has been an important growth in insurance premiums that generated improvement in insurance core business and the recovery of investment results in higher net income.

Speaker Change: With over 15% growth year over year in commercial loans.

Additionally, we have gained more than 80 basis points of market share in this segment over the past year high.

Luis Felipe Castellanos: Although we still face volatility in our investment operations, overall, we continue in our recovery path.

Alonso Arambur: But we would expect a little bit more financing on those new cards over the next couple of months.

Michaela Kasasa: Additionally, we have gained more than 80 basis points of market share in this segment over the past year, highlighting mid-sized companies that we have consolidated their positions as number three, reaching 12.3% market share. Fifth, there has been an important growth in insurance premiums that generated improvement in insurance core business and the recovery of investment results in higher net income. Finally, in wealth management, assets under management continue to grow nicely, reaching a historically maximum, driving also fee income up. As you can see, we are reporting ISS figures in its three operating segments: banking, insurance, and wealth management.

Highlighting midsized companies that we have consolidated our position as number three reaching 12, 3% market share.

Speaker Change: First there has been an important growth in insurance premiums that generated improvement in insurance core business and the recovery of investment results and higher net income.

Michaela Kasasa: Fifth, there has been an important growth in insurance premiums that generated improvement in insurance core business and the recovery of investment results in higher net income. Finally, in wealth management, assets under management continue to grow nicely reaching a historically maximum driving also fee income up. As you can see, we are reporting ISS figures in its three operating segments, banking insurance and wealth management. Payments will no longer be a separate segment, as it has become an intake report of the core offering of and very synergic with the banking fund.

Speaker Change: Finally in wealth management assets under management continued to grow nicely, reaching historically maximal driving also fee income up.

Michela Casasa: Finally, in wealth management, assets under management continue to grow nicely, reaching a historically maximum, driving also fee income up. As you can see, we are reporting IFS figures in its three operating segments, Banking, Insurance, and Wealth Management. Payments will no longer be a separate segment as it has become an integral part of the core offering of and very synergistic with the banking sector. On slide 8, we can see earnings at $286 million in the quarter.

Speaker Change: You can see we are reporting iff's figures in its three operating segments banking insurance and wealth management.

Alonso Arambur: Okay.

Speaker Change: Payments will no longer be a separate segment as it has become an integral part of the core offering.

Alonso Arambur: Thank you.

Michaela Kasasa: Payments will no longer be a separate segment, as it has become an intake report of the core offering of and very synergic with the banking fund. On slide A, we can see Ernest at 286 million soles in the quarter. Although we are still below the levels of a year ago, we have doubled from the net income reported last quarter. In banking, the quarter of a quarter comparison is very positive. We know it to be at 11.1%, which is higher than the previous quarter by 400 basis points. In the insurance business, there is a recovering investment portfolio, adjusting the non-recurring events from the premium quarter; the net income has no significant changes.

Speaker Change: And very synergy with the banking sector.

Speaker Change: On slide eight we can see earnings of 286 million solid in the quarter. Although we are still below the levels of a year ago. We have doubled from the net income reported last quarter.

Andres Soto: The next question will come from Andre Soto, what's the tender?

Michaela Kasasa: On slide A, we can see Ernest at 286 million soles in the quarter, although we are still below the levels of a year ago, we have doubled from the net income reported last quarter. In banking, the quarter of a quarter comparison is very positive. We know it to be at 11.1%, which is higher than the previous quarter by 400 basis points. In the insurance business, there is a recovering investment portfolio, adjusting the non recurring events from the premium quarter, the net income has no significant changes.

Michela Casasa: Although we are still below the levels of a year ago, we have doubled from the net income reported last quarter. In banking, the quarter over quarter comparison is very possible. Even though cost of risk is still high, we continue to see an important recovery trend that allowed net income to grow 58 percent and ROE to be at 11.1 percent, which is higher than the previous quarter by 400 basis points. In the insurance business, there is a recovery in the investment portfolio. Adjusting the non-recurring events from the premium quarter, the net income has no significant change.

Speaker Change: In banking the quarter over quarter comparison is very positive.

Andres Soto: Please go ahead.

Speaker Change: Even though cost of risk is still high we continue to see an important recovery trend that allowed net income to grow 58% and narrow it to be at 11, 1%, which is higher than the previous quarter by 400 basis points.

Andres Soto: Good morning, Dola.

Speaker Change: In the insurance business, there is a recovering demand investment portfolio.

Andres Soto: Thank you for the presentation.

Speaker Change: Adjusting that dilute the nonrecurring events from the previous quarter and net income has no significant changes.

Speaker Change: Finally on the wealth management business. There is a good dynamic with clients as assets under management continue to grow the investment portfolio Hasnt performed as expected compensating the improvement in fee income, resulting in an ROE of two 7% this quarter.

Andres Soto: My question is regarding the long-term strategy and how do you see your long book over the medium term?

Michaela Kasasa: Finally, on the wealth management business, there is a good dynamic with clients as asset under management continue to grow, but the investment portfolio hasn't performed as expected compensating the improvement in free income, resulting in an ROE of 2.7% this quarter. On a cumulative basis, the wealth management ROE is around 7%, having a higher net income of 10%, when comparing to first half 23%. On slide 9, we see a year-over-year growth of revenues of 2%, mainly due to a sustained better performance of insurance core business compensated by lower revenues from wealth management. On a quarterly basis, there is also a slightly higher revenue in banking, which we will explain in later slides.

Michaela Kasasa: Finally, on the wealth management business, there is a good dynamic with clients as assets under management continue to grow, but the investment portfolio hasn't performed as expected, compensating the improvement in free income, resulting in an ROE of 2.7% this quarter. On a cumulative basis, the wealth management ROE is around 7%, having a higher net income of 10% when comparing to first half 23%. On slide 9, we see a year-over-year growth of revenues of 2%, mainly due to a sustained better performance of the insurance core business, compensated by lower revenues from wealth management. On a quarterly basis, there is also a slightly higher revenue in banking, which we will explain in later slides.

Michela Casasa: Finally, on the wealth management business, there is a good dynamic with clients as assets under management continue to grow. But the investment portfolio hasn't performed as expected, compensating the improvement in free income, resulting in an ROE of 2.7% this quarter. On a cumulative basis, the Wealth Management ROE is around 7%, having a higher net income of 10% when comparing to first half 2015. On slide 9, we see a year-over-year growth of revenues of 2% mainly due to a sustained better performance of insurance core business compensated by lower revenues from wealth management.

Speaker Change: On a cumulative basis, the west management ROE is around 7%, having a higher net income of 10% when comparing to first half 'twenty three.

Speaker Change: On slide nine we see a year over year growth of revenues of 2%, mainly due to a sustained better performance of insurance core business compensated by lower revenues from wealth management when our quarterly basis. There is also a slightly higher revenue in banking.

Michela Casasa: On a quarterly basis, there is also a slightly higher revenue in banking, which we will explain in later slides. On slide 10, we wanted to follow up with the evolution of the asset quality of the loan portfolio. First, we have increased our exposure to commercial banking, passing from 44% in the second quarter of 23 to 47% of Interbank's portfolio as of the second quarter of 24, tactically taking advantage of the Impulso en Perú program, which has allowed us to grow with a better risk-adjusted result in small and medium-sized companies.

Speaker Change: Which we will explain in later slides.

Speaker Change: On slide 10, we wanted to follow up with the evolution of the asset quality of the loan portfolio.

Michaela Kasasa: On slide 10, we wanted to follow up with the evolution of the asset quality of the loan portfolio. First, we have increased our exposure to commercial banking, passing from 44% in the second quarter 23 to 47% of Interbank's portfolio as of the second quarter 24. Tactically, taking advantage of the Impulsome Value Program, which has allowed us to grow with a better risk-adjusted result in small and medium-sized companies. This segment continues to perform well in our portfolio, even when excluding the guaranteed Impulsome value portion. Second, the mix of our consumer portfolio has changed. The unsecured portion, which comprises credit cards and personal loans, has decreased, now representing 19% of the total loan book, down from 21% in the previous quarter and 24% a year ago.

Speaker Change: First we have increased our exposure to commercial banking passing from 44% in the second quarter of 23% to 47% of inter bank portfolio as of the second quarter of 24.

Luis Felipe Castellanos: At Interbank, we have been able to grow our market shares in loans and deposits, growing significantly in commercial banking, now consolidating as a third largest bank in mid-sized companies and in total deposits.

Andres Soto: Historically, you know, interbank was have an outside exposure to consumer lending after we have seen in this great cycle has anything changed in that sense.

Speaker Change: Tactically taken advantage of important new program, which has allowed us to grow with a better risk adjusted result in small and medium sized companies. This segment continues to perform well in our portfolio, even when excluding the warranty in <unk>.

Andres Soto: We got new rapid diet for continue having this type of exposure and also considering that you have other initiatives targeting SMEs.

Andres Soto: Can we expect IFS after this be have a different composition or you think that all those factors are rather sickly gone.

Michela Casasa: This segment continues to perform well in our portfolio, even when excluding the guaranteed Impulso Mi Perú portion. Second, the mix of our consumer portfolio has changed. The unsecured portion, which comprises credit cards and personal loans, has decreased, now representing 19% of the total loan book, down from 21% in the previous quarter and 24% a year ago. We have seen this trend happening also at market level when consumer lending decreasing year over year. Meanwhile, payroll deductible loans to the public sector employees, a very low risk product, now represents 13% of the loan book.

Second the mix of our consumer portfolio has changed.

Michaela Kasasa: Second, the mix of our consumer portfolio has changed. The unsecured portion, which comprises credit cards and personal loans, has decreased, now representing 19% of the total loan book, down from 21% in the previous quarter and 24% a year ago. We have seen this trend happening also at market level when consumer lending decreasing year over year. Meanwhile, terrible deductible loans to the public sector employees, a very low risk product, now represents 13% of the loan book.

Speaker Change: The unsecured portion which comprises credit cards and personal loans has decreased now representing 19% of the total loan book down from 21% in the previous quarter and 24% a year ago.

Speaker Change: We have seen this trend happening also at market level, when consumer lending decreasing year over year.

Michaela Kasasa: We have seen this trend happening also at market level when consumer lending decreasing year over year. Meanwhile, terrible deductible loans to the public sector employees, a very low risk product, now represents 13% of the loan book. Consequently, we wanted to highlight that this quarter, we see the inflection point of the consumer portfolio, not only due to the change in mix, but also because of a better payment behavior from customers. Additionally, this quarter, with a better looking macro environment, the cost of risk is reflecting a downward trend, decreasing from 4.7% of the previous quarter and from the peak of 5.2% in the fourth quarter 23.

Speaker Change: Meanwhile, payroll deductible loans to the public sector employees, a very low risk products now represent 13% of the loan book.

Speaker Change: Consequently, we wanted to highlight that this quarter, we see the inflection point of the consumer portfolio not only due to the change in mix, but also because of a better payment behavior from customers.

Michela Casasa: Consequently, we wanted to highlight that this quarter, we see the inflection point of the consumer portfolio, not only due to the change in mix, but also because of a better payment behavior from customers. Additionally, this quarter, with a better-looking macro environment, the cost of risk is reflecting a downward trend, decreasing from 4.7% of the previous quarter and from the peak of 5.2% in the fourth quarter 23. There is good news as these levels are not only lower than the previous quarters, but are also slightly better than our, Finally, the change in trend is also reflected in the NPLs, which peaked in the first quarter, 24, and has started to decline to 3.7% in this second quarter, maintaining a lower NPL compared to our peers.

Andres Soto: And once the economy recovers, we we should see a re-shuffling or your long book towards the more closer to historical levels.

Michaela Kasasa: Consequently, we wanted to highlight that this quarter, we see the inflection point of the consumer portfolio, not only due to the change in mix, but also because of a better payment behavior from customers. Additionally, this quarter, with a better looking macro environment, the cost of risk is reflecting a downward trend, decreasing from 4.7% of the previous quarter and from the peak of 5.2% in the fourth quarter 23. There is good news as these levels are not only lower than the previous quarter but are also slightly better than ours.

Speaker Change: Additionally, this quarter with a better looking macro environment the cost of risk is reflecting a downward trend decreasing two four from four 7% of the previous quarter and from the peak of five 2% in the fourth quarter of 23.

Luis Felipe Castellanos: Even though cost of risk remains high, there is clear improvement showing a downward trend as we expected.

Michaela Casasa: Third, lower cost of risk translates into better results for interbank.

Luis Felipe Castellanos: Yeah, hi.

Speaker Change: There is good news as these levels are not only lower than the previous quarters, but are also slightly better than our estimates.

Michaela Casasa: Fourth, continuous improvement in cost of funds.

Luis Felipe Castellanos: And the same thing, thank you very much for your question.

Michaela Kasasa: There is good news, as these levels are not only lower than the previous quarter, but are also slightly better than ours. Estimates. Finally, the change in trend is also reflected in the MPL, which picked in the first quarter 24 and has started to decline to 3.7% in this second quarter, maintaining a lower NPL compared to our peers. On slide 11, complementing the previous slide, the rescuerings have slightly decreased, now representing around 19% of the retail and secure portfolio. As mentioned in previous calls, the payment behavior for performing knowns is quite different for customers with rescuers.

Speaker Change: The change in trend is also reflected in the NPS, which peaked in the first quarter 'twenty four and have started to decline to three 7% in the second quarter, maintaining a lower NPL campaign compared to our peers.

Luis Felipe Castellanos: And we've actually always mentioned that we like to balance approach or portfolio like a 50% commercial 50% retail.

Michaela Kasasa: Estimates. Finally, the change in trend is also reflected in the MPL, which picked in the first quarter 24 and has started to decline to 3.7% in this second quarter, maintaining a lower NPL compared to our peers. On slide 11, complementing the previous slide, the rescuerings have slightly decreased, now representing around 19% of the retail and secure portfolio. As mentioned in previous calls, the payment behavior for performing knowns is quite different for customers with rescuers.

Luis Felipe Castellanos: Obviously some opportunities came in the in the last year that the balance that a little bit more on consumer but that the view doesn't change.

Speaker Change: On slide 11, complementing the previous slide the rescheduling has slightly decreased now representing around 19% of the retail unsecured portfolio.

Luis Felipe Castellanos: We want to we want to go on a balance portfolio strategy.

Michela Casasa: On slide 11, complementing the previous slide, the rescheduling has slightly decreased, now representing around 19% of the retail and secure portfolio. As mentioned in previous calls, the payment behavior for performing loans is quite different for customers with reschedulings. The unpaid portion for regular customers is only 1.4%, while it is around 10% for rescheduled clients for installments that mature as of June.

Speaker Change: As mentioned in previous calls the payment behavior for performing loans is quite different for customers, which we scheduled the unpaid portion for regular customers is only one 4% while it is around 10% for rescheduled clients four installments and mature as of June.

Luis Felipe Castellanos: I think that's what has done IFS successful in the past and that probably will be in the future.

Luis Felipe Castellanos: Obviously, certain conditions of the country are changing, probably certain segments will be growing more than others, and that's something that we need to review, but as of now, it doesn't change.

Michaela Kasasa: The unpaid portion for regular customers is only 1.4%, while it is around 10% for rescuers, clients, for installments and materials as of June. Now, we have observed an improvement in the payment behavior of customers on the back of the liquidity events of the second quarter, such as availability of severance indemnity deposits and pension funds withdraw. And also because of proactive action taken in collections, this is evident in the reduction of the unpaid installments by the rescued clients passing from 15.8% to 10.5%.

Michaela Kasasa: The unpaid portion for regular customers is only 1.4%, while it is around 10% for rescuers, clients, for installments and materials as of June. Now, we have observed an improvement in the payment behavior of customers on the back of the liquidity events of the second quarter, such as the availability of severance indemnity deposits and pension funds withdraw. And also because of proactive action taken in collections, this is evident in the reduction of the unpaid installments by the rescued clients, passing from 15.8% to 10.5%. Finally, on this section of slide 12, as always, we wanted to highlight the type of cost management we continue to pursue with focus ISS level versus the previous year and only 3% increase from the banking segment.

Speaker Change: Now we have observed an improvement in the payment behavior of customers on the back of the liquidity events of the second quarter, such as availability of severance indemnity deposits and pension funds withdrawal.

Michela Casasa: Now, we have observed an improvement in the payment behavior of customers on the back of the liquidity events of the second quarter, such as availability of severance indemnity deposits and pension funds withdrawals, and also because of proactive actions taken in collections. This is evident in the reduction of the unpaid installments by the rescheduled clients, passing from 15.8% to 10.5%. Finally, on this section, on slide 12, as always, we wanted to highlight the tight cost management we continue to pursue, with focus on IFS level versus the previous year, and only 3% increase from the banking segment.

Luis Felipe Castellanos: We are going to go over our big new five-year plan strategy review and strategic planning process starting actually this day.

Speaker Change: Also because of proactive actions taken in collections. This is evidenced in the reduction of the unpaid installments by the rescheduled clients asking from 15, 8% to 10, 5%.

Luis Felipe Castellanos: And it will go for a couple more months, so we're going to debate that obviously Carlos story in his new role brings new ideas that will be welcome and discussed, and when we finalize that process probably will be able to share, but so far, we believe that it will continue to be a country of opportunities.

Speaker Change: Finally on this section on slide 12, as always we wanted to highlight the tight cost management, we continue to pursue.

Luis Felipe Castellanos: The violence approach is what we have, and that's what we will enter gender in the following months as we continue to deploy our strategy.

Michaela Kasasa: Finally, on this section of slide 12, as always, we wanted to highlight the type of cost management we continue to pursue with focus ISS level versus the previous year and only 3% increase from the banking segment. With this, the efficiency ratio is 38.6% for ISS and 39.7% for Interbank.

Speaker Change: With focused iff's level versus the previous year, and only 3% increase from the banking segment with this the efficiency ratio is 38, 6% for ISS and 39, 7% for interbank.

Michela Casasa: With this, the efficiency ratio is 38.6% for IFS and 39.7% for Interbank. Moving on to the section of building a digital platform. On slide 15, we have positive news in our digital indicators, which continue to show nice trends when compared to the previous year. As of June 24, digital sales reached 68 percent, up four points from last year, and digital customers reached 81 percent of retail customers who interact with our digital channels without going to the stores, up six points from the past year.

Michaela Kasasa: With this, the efficiency ratio is 38.6% for ISS and 39.7% for Interbank.

Speaker Change: Moving onto the section of building a digital platform.

Luis Felipe Castellanos: I think growth in core segments, digitalization, and vast use of analytics is what we will continue to stream.

Michaela Kasasa: Moving on to the section of building a digital platform. On slide 15, we have positive news in our digital indicators, which continues to show nice trends when compared to the previous year. As of June 24, digital sales reached 68% at four points from last year. And digital customers reached 81% of retail customers who interact with our digital channels without going to the stores at six points from the past year. Furthermore, our digital sales service indicator is 77% and our MPS in our retail customers is 61%.

Speaker Change: On slide 15, we have positive news in our digital indicators, which continue to show nice strength when compared to the previous year as of June 24, digital sales reached 68% up four points from last year and digital customers reached 80, 881% of retail customers, who interact with our digital channel.

Luis Felipe Castellanos: Thank you for Luis Lippe.

Speaker Change: Without going to the stores.

Speaker Change: Up six points from the past year. Furthermore, our digital self service indicator is 77% and our NPS in our retail customers is 61.

Michela Casasa: Furthermore, our digital self-service indicator is 77% and our NPS in our retail customers is 61. As part of our digital value-added proposition to enhance customer experience, we want to give you a quick summary of the recent developments on Cling. The interoperable P2P system continues to enable PLYN to accelerate its growth as volumes expand by two-fold in one year and users reach more than 9 million by the end of June, with interbank participation stable at 44%.

Speaker Change: As part of our digital value added proposition to enhance customer experience. We want to give you a quick summary of the recent developments on fleet.

Michaela Kasasa: As part of our digital value added proposition to enhance customer experience, we want to give you a quick summary of the recent developments on clean. The interoperable P2P system continues to enable Clean to accelerate its growth as volume expand by twofold in one year, in users which more than 9 million by the end of June, with Interbank participation stable at 44%. Moreover, our active users have grown to 2.2 million, as 33% increase compared to last year, and this should result in a higher engagement of clients with Interbank.

Speaker Change: Interoperable P to P system continues to enable <unk> to accelerate its growth as volume expanded by twofold, and one year in users, which more than 9 million by the end of June with interbank participation stable at 44%. Moreover, our active users have grown to $2 2 million or 33%.

Luis Felipe Castellanos: Finally, Interbank and EZP continue working to create synergies, while PLEAN continues to engage more users.

Michaela Kasasa: The interoperable P2P system continues to enable Clean to accelerate its growth as volume expand by twofold in one year, in users which more than 9 million by the end of June, with interbank participation stable at 44%. Moreover, our active users have grown to 2.2 million, a 33% increase compared to last year, and this should result in a higher engagement of clients with Interbank. The campaigns such as Yapet, Plineame, and Clean TOS have allowed Interbank to increase in transactions by 2.8 times. This development is helping to bring more Peruvians into the financial system, reducing the use of cash, which continues to be high in the country.

Michela Casasa: Moreover, our active users have grown 2.2 million as 33% increase compared to last year, and this should result in a higher engagement of clients with Intercorp. The campaigns such as YaPay Plineame and PlinPay TOS have allowed Interbank to increase in transactions by 2.8 times. This development is helping to bring more Peruvians into the financial system, reducing the use of cash, which continues to be high in the country.

Speaker Change: <unk> increased compared to last year and this should result in a higher engagement appliance with interbank.

Speaker Change: The campaigns, such as <unk> and clean.

Michaela Kasasa: The campaigns such as Yapet, Plineame, and Clean TOS have allowed Interbank to increase in transactions by 2.8 times. This development is helping to bring more Peruvians into the financial system, reducing the use of cash which continues to be high in the country. Insurance and wealth management digital indicators show positive developments as well, with digital sales service reaching 66% at Interseguro, so at digital sales reaching 82%, and digital premiums for Vida slowly gaining relevance which is 13%, and Wealth Management, Digital Transactions for Fund Management reached 50% at Interfondo, and Ernie Uses reached 23% of total Interfondos customers.

Speaker Change: Have allowed interbank to increasing transactions by two eight times this.

Speaker Change: This development development is helping to bring more peruvians into the financial system, reducing the use of cash which continues to be high in the country.

Speaker Change: Insurance and wealth management digital indicators show positive developments as well with digital self service, reaching 66% at industrial Udo, So our digital sales, reaching 82% and digital premiums from V that slowly gaining relevance reaching 13%.

Luis Felipe Castellanos: At Interseguro, we have seen relevant growth in premiums, mainly in private identities and individual life, maintaining market leadership in annulities.

Michaela Casasa: Fifth, WG growth in insurance premiums.

Michaela Kasasa: Insurance and wealth management digital indicators show positive developments as well, with digital sales service reaching 66% at Interseguro, so at digital sales reaching 82%, and digital premiums for Vida slowly gaining relevance, which is 13%. and Wealth Management, Digital Transactions for Fund Management reached 50% at Interfondo, and Ernie Uses reached 23% of total Interfondos customers.

Michela Casasa: Insurance and wealth management digital indicators show positive developments as well with digital self-service reaching 66% at Interseguro. So our digital sales reaching 82% and digital premiums for Vida slowly gaining relevance reaching 13%, on Wealth Management, digital transactions for fund management reach 50% at Interfondo, and earning users reach 23% of total Interfondo's capital. Now let's move on to show you some more details on the performance of our key business. On slide 19, we continue to grow double-digit in lower risk products and segments such as payroll deductible loans and mortgage with 24% and 15% year-over-year growth in disbursement respect.

Speaker Change: In wealth management digital transactions for fund management reached 50% in the funnel and any users reached 23% of total in there from those customers.

Speaker Change: Now, let's move on to show you some more details on the performance of our.

Luis Felipe Castellanos: Our wealth management business has had positive quarter in its core business, as the assets and the management have reached an all-time high.

Michaela Casasa: And finally, a strong increase in asset under management in wealth management.

Michaela Kasasa: Now, let's move on to show you some more details on the performance of our key businesses. On slide 19, we continue to grow double digit in lower-risk products and segments such as several deductible loans and mortgage, with 24% and 15% year-over-year growth in disbursements respectively. Also, we are growing heavily in commercial banking, with lower-risk, as Impulso Mipero is allowing us to grow in SMEs, where our value proposition has had nice traction multiplying in disbursements more than twofold when compared to last year.

Michaela Kasasa: Now, let's move on to show you some more details on the performance of our key businesses. On slide 19, we continue to grow double digit in lower-risk products and segments such as several deductible loans and mortgage, with 24% and 15% year-over-year growth in disbursements, respectively. Also, we are growing heavily in commercial banking, with lower risk, as Impulso Mipero is allowing us to grow in SMEs, where our value proposition has had nice traction, multiplying in disbursements more than twofold when compared to last year. Important to mention that more than 90% of disbursements to SMEs have the guarantee of Impulso Mipero.

Michela Casasa: Also, we are growing heavily in commercial banking with lower risk as Impulso Mi Perú is allowing us to grow in SMEs where our value proposition has had nice traction multiplying disbursements more than two-fold when compared to last year. Important to mention that more than 90% of disbursements to SMEs have the guarantee of Impulso Mi Perú. Also, commercial banking portfolios as a whole grew 15% on a year-over-year basis and 12% from the previous quarter above the system as we reached 10.2% market share in this sector.

Speaker Change: Key businesses.

Speaker Change: On slide 19, we continue to grow double digit in lower risk products and segments, such as payroll deductible loans and mortgage with 24% and 15% year over year growth in disbursements, respectively.

Luis Felipe Castellanos: As you all know, our strategic priority continues to be to achieve data excellence for our customers.

Michaela Casasa: Thank you very much.

Speaker Change: Also we are growing heavily in commercial banking with lower risk as in fulsome in Peru is allowing us to grow in Smes, where our value proposition has had nice traction multiply and disbursements more than twofold, when compared to last year.

Luis Felipe Castellanos: We want to become the leading digital platform with profitable growth.

Michaela Casasa: Now we welcome any questions you might have.

Speaker Change: Important to mention that more than 90% of disbursements to Smes have the guarantee of <unk> limited.

Unknown Executive: At this time, we will open the floor for your questions.

Michaela Kasasa: Important to mention that more than 90% of disbursements to SMEs have the guarantee of Impulso Mipero. Also, commercial banking portfolio has a whole new 15% on a year-over-year basis, and 12% from the previous quarter above the system, as we reached 10.2% market share in this segment. Also, we wanted to highlight the growth of mid-sized company as we are now consistently ranked number three in this segment. Finally, in line with the market trend, because we remain cautious in the loan book, there is still impact in cash loans, disbursements, decreasing 48% year-over-year, as well as on credit and debit card purchases.

Speaker Change: Also commercial banking portfolio as a whole grew 15% on a year over year basis, and 12% from the previous quarter above the system as we reached 10, 2% market share in this segment.

Unknown Executive: First, we will take the questions from the conference call, and then the webcast questions.

Michaela Kasasa: Also, commercial banking portfolio has a whole new 15% on a year-over-year basis, and 12% from the previous quarter above the system, as we reached 10.2% market share in this segment. Also, we wanted to highlight the growth of mid-sized company, as we are now consistently ranked number three in this segment. Finally, in line with the market trend, because we remain cautious in the loan book, there is still impact in cash loans, disbursements, decreasing 48% year-over-year, as well as on credit and debit card purchases. However, we see a recover of this last one of more than 20% during July.

Speaker Change: Also we wanted to highlight the growth of mid sized company. As we are now consistently ranked number three in this segment.

Michela Casasa: Also, we wanted to highlight the growth of Midsize Company as we are now consistently ranked number three in this sector. Finally, in line with the market trend, because we remain cautious in the loan book, there is still impact in cash loans disbursements, decreasing 48% year over year, as well as on credit and debit card purchases. However, we see a recovery of this last one of more than 20% during July. On slide 20, we wanted to update you on the development from the Impulso Mi Perú Program.

Unknown Executive: If you would like to ask a question, please press star, the star key, followed by the number one on your touch tone phone.

Speaker Change: Finally in light in line with the market trend because we remain cautious in the loan book there is still intact in cash loans disbursements decreasing 48% year over year as well as on credit and debit card purchases.

Unknown Executive: Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the question queue, please press star, then two.

Michaela Casasa: And from the perspective, you previously mentioned that when you look the long term, we should expect IFS to have a different composition in terms of name and cost of risk.

Speaker Change: However, we see a recovery of this last one of more than 20% during July.

Unknown Executive: Again, to ask a question, please press star, then one.

Michaela Kasasa: However, we see a recover of this last one of more than 20% during July. Unlike to any, we wanted to update you on the development from the Impulso Mipero. As mentioned before, this program does not provide funding, but gives from 50 to 98% guarantee levels to credits given to SMEs and mid-sized companies. And the allocation of the guarantee is conducted through actions where the bidding variable is the interest rate offered to clients.

Speaker Change: On slide 20, we wanted to update you on the development from the fulfillment of blueprint as mentioned before this program does not provide funding that gives more than gifts.

Unknown Executive: And we will pause momentarily to compile a list of questioners.

Michaela Casasa: Can you remind us what do you see a sustainable level for those variables to target your 18% ROE for the consolidated entity?

Michaela Kasasa: Unlike to any, we wanted to update you on the development from the Impulso Mipero. As mentioned before, this program does not provide funding, but gives from 50% to 98% guarantee levels to credits given to SMEs and mid-sized companies. And the allocation of the guarantee is conducted through actions where the bidding variable is the interest rate offered to clients. During the second quarter, we have this dose more than 1,400 million solids. Overall, almost 2 billion solids have been this dose, of which almost 65% have gone to SMEs and are remaining to mid-sized companies. Risk-adjusted profitability has improved, and this increase in volumes and clients represents also an opportunity to further cross-sell and finance financing as was the case with Reativa.

Ernesto Gabilondo: And the first question will come from Ernesto, Gabilondo, with Bank of America.

Michela Casasa: As mentioned before, this program does not provide funding but gives more than, gives from 50 to 98% guarantee levels to credits given to SMEs and mid-sized companies. And the allocation of the guarantee is conducted through auctions where the bidding variable is the interest rate offered to clients. During the second quarter, we have disbursed more than 1,400 million soles. Overall, almost 2 billion soles have been disbursed, of which almost 65% has gone to SMEs and the remaining to mid-sized companies.

Speaker Change: <unk> from 50% to 98% guarantee levels two credits given to Smes and mid sized companies and the location of the guarantee is conducted through auctions, where the bidding variable is the interest rates offered to clients.

Ernesto Gabilondo: Please go ahead, sir.

Speaker Change: During the second quarter, we have disbursed more than 1000 400 million solid overall, almost 2 million solid has been disbursed of which almost 65% hasnt gone to Smes and the remaining to mid sized companies risk.

Ernesto Gabilondo: Thank you.

Michaela Kasasa: During the second quarter, we have this dose more than 1,400 million solids. Overall, almost 2 billion solids have been this dose, of which almost 65% have gone to SMEs and are remaining to mid-sized companies. Risk-adjusted profitability has improved, and this increase in volumes and clients re-resents also an opportunity to further cross-sell and finance financing as was the case with Reativa. On flight 21, although risk-adjusted limit is still low, we observe an important improvement of 50 basis points aligned, not only with the shift of the loan book mix, but also with the reduction of cost of risk in both retail and commercial banking, given the growth of Impulso Mipero and the liquidity events mentioned before.

Ernesto Gabilondo: Hi, good morning.

Speaker Change: Risk adjusted profitability has improved and these increasing volumes and client represents also an opportunity to further cross sell and finances financing as was the case with RCI.

Ernesto Gabilondo: We're Felipe and Michelin.

Michela Casasa: Risk-adjusted profitability has improved, and this increase in volumes in clients represents also an opportunity to further cross-sell and financing, as was the case with REACT. On slide 21, although risk-adjusted NIM is still low, we observe an important improvement of 50 basis points aligned not only with the shift of the loan book mix, but also with a reduction of cost of risk in both retail and commercial banking, given the growth of Impulso Mi Perú and the liquidity events mentioned before.

Speaker Change: On slide 21, although risk adjusted NIM is still low we observe an important improvement of 50 basis points aligned not only with the shift of the loan book mix, but also with a reduction of cost of risk in both retail and commercial banking.

Ernesto Gabilondo: Good morning to all the team.

Michaela Kasasa: On flight 21, although risk-adjusted limit is still low, we observe an important improvement of 50 basis points aligned, not only with the shift of the loan book mix, but also with the reduction of cost of risk in both retail and commercial banking, given the growth of Impulso Mipero and the liquidity events mentioned before. Additionally, there is still an impact on yields due to the lower rates driven by Impulso Mipero and with the shift of the loan book mix. Antique loans, which includes credit cards and personal loans, decrease to 19% here over here. In that line, we see lower yield on loans of 20 basis points, reaching 10.6%, and the minimum reduced by 10 basis.

Speaker Change: Given the growth of <unk> and the liquidity events mentioned before.

Speaker Change: Additionally, there is still an impact on yields due to the lower rate driven by <unk> and with the shift of the loan book mix.

Ernesto Gabilondo: Thanks for the opportunity.

Michaela Kasasa: Additionally, there is still an impact on yields due to the lower rates driven by Impulso Mipero and with the shift of the loan book mix. Antique loans, which includes credit cards and personal loans, decrease to 19% here over here. In that line, we see lower yield on loans of 20 basis points reaching 10.6% and the minimum reduced by 10 basis. Furthermore, this quarter brings positive news as the cost of funds consolidates change in trend, decreasing 40 basis points to 3.6% with an accumulated reduction of 80 basis points from the peak of the fourth quarter last year.

Michela Casasa: Additionally, there is still an impact on yields due to the lower rates driven by Impulso y Perú and with the shift of the long book mix. Unsecured loans, which includes credit cards and personal loans, decreased to 19% year-over-year.

Speaker Change: Unsecured loans, which includes credit cards and personal loans decreased to 19% year over year in that line, we see lower yield on loans of 20 basis points, reaching 10, 6% and then reduced by 10 basis points.

Michela Casasa: In that line, we see lower yield on loans of 20 basis points, reaching 10.6%, and the mean reduced by 10 basis points. Furthermore, this quarter brings positive news as the cost of funds consolidates a change in trend, decreasing 40 basis points to 3.6 percent with an accumulated reduction of 80 basis points from the peak of the fourth quarter last year. As you know, our sensitivity to changes in rates is higher in the funding side, as we have more short-term deposits, both institutional and retail.

Speaker Change: Furthermore, this quarter brings positive news as the cost of funds consolidate chain.

Michaela Kasasa: Furthermore, this quarter brings positive news as the cost of funds consolidates change in trend, decreasing 40 basis points to 3.6%, with an accumulated reduction of 80 basis points from the peak of the fourth quarter last year. This is why, when rates increase, our cost of funds was hit, but now that we see lower market rates, we benefit more than others. In that sense, this improvement is attributable not only to lower market rates, as the short duration of interest-bearing deposits allows for faster reprising, especially in local currency deposits. But also to a better funding mix, as the proportion of time deposits over retail deposits is decreasing, given a proactive management of efficient funding.

Speaker Change: Change in trend decreasing 40 basis points to three 6% with an accumulated reduction of 80 basis points from the peak of the fourth quarter last year.

Speaker Change: As you know our sensitivity to changes in rates is higher in the funding side as we have more short term deposits both institutional and retail. This is why when rates increase our cost of funds was heat, but now that we see lower market rates, we benefit more than others in that sense. This improvement.

Michaela Kasasa: This is why when rates increase our cost of funds was hit, but now that we see lower market rates we benefit more than others. In that sense, this improvement is attributable not only to lower market rates, as the short duration of interest bearing deposits allows for faster reprising, especially in local currency deposits. But also to a better funding mix as the proportion of time deposits over retail deposits is decreasing given a proactive management of efficient funding.

Michela Casasa: This is why, when rates increased, our cost of funds was hit, but now that we see lower market rates, we benefit more than others. In that sense, this improvement is attributable not only to lower market rates, as the short duration of interest bearing deposits allows for faster repricing, especially in local currency deposits, but also to a better funding mix as the proportion of time deposits over written deposits is decreasing given a proactive management of efficient funding. Sequently, the cost of deposits has decreased 20 basis points in the quarter and 60 basis points year-to-date.

Speaker Change: Is attributable not only to lower market rates as.

Speaker Change: As the short duration of interest bearing deposits allows for fast faster repricing, especially in local currency deposits, but also to a better funding mix as the proportion of time deposits over retail deposits is decreasing given our proactive management of efficient funding.

Speaker Change: Sequencing in the cost of deposits has decreased 20 basis points in the quarter and 60 basis points year to date.

Michaela Kasasa: Consequently, the cost of deposits has decreased 20 basis points in the quarter and 60 basis points year to date. More positive news is that the share of deposits in total spending remains stable and the retail deposit market share continues to increase highlighting growth from saving deposits throughout the year. Finally, along to the deposit ratio of 99% is in line with the industry average. We have also been working to generate further synergies with ECP as we encourage the growth of our payment ecosystem focusing on increasing transactional volumes, offering merchants value added services, continued to pilot low risk loans to merchants and use ECP as a distribution network for interbank products as well as a source to increase float.

Michaela Kasasa: Consequently, the cost of deposits has decreased 20 basis points in the quarter and 60 basis points year-to-date. More positive news is that the share of deposits in total spending remains stable, and the retail deposit market share continues to increase, highlighting growth from saving deposits throughout the year. Finally, along to the deposit ratio of 99% is in line with the industry average. We have also been working to generate further synergies with ECP as we encourage the growth of our payment ecosystem, focusing on increasing transactional volumes, offering merchants value added services, continued to pilot low risk loans to merchants, and use ECP as a distribution network for interbank products, as well as a source to increase float.

Speaker Change: More positive news is that the share of deposits in total funding remains stable and the retail deposit market share continues to increase highlighting growth from saving deposits throughout the year.

Michela Casasa: More positive news is that the share of deposits in total funding remains stable and the retail deposit market share continues to increase, highlighting growth from saving deposits throughout the year. Finally, our loan-to-deposit ratio of 99% is in line with the industry's average. We have also been working to generate further synergies with EasyPay as we encourage the growth of our payment ecosystem, focusing on increasing transactional volumes, offering merchants value-added services, continue to pilot low-risk loans to merchants, and use EasyPay as a distribution network for interbank products, as well as a source to increase flow.

Finally, our loan to deposit ratio of 99% is in line with the industry average.

Speaker Change: We have also been working to generate further synergies with EC pay as we encourage the growth of our payment ecosystem.

Luis Felipe Castellanos: We want to create the best digital experience for our customers and to boost our core businesses by enhancing synergies among our companies in our platform and continuously develop our analytical capabilities, always leveraging on the best talent.

Michaela Kasasa: The results are evident as we follow four key figures, 27% yearly increase in ECP flow coming to interbank accounts and 40% increase in float from merchants. Moreover, there is a 2.2 times yearly increase in transactional volumes and 17% growth in float from micro merchants thanks to ECP yet.

Speaker Change: <unk> seen an increase in transactional volumes offering merchants value added services.

Speaker Change: Turning to pilot low risk loans to merchants in use easy pay as a distribution network for interbank products as well as a source to increase float.

Speaker Change: The results are evident as we follow for key figures.

Michaela Kasasa: The results are evident as we follow four key figures: 27% yearly increase in ECP flow coming to interbank accounts and 40% increase in float from merchants. Moreover, there is a 2.2 times yearly increase in transactional volumes and 17% growth in float from micro merchants thanks to ECP yet. Now moving to insurance on slide 24, premiums were up 8% in the quarter and around 25% year over year as market share of annuities remains at 29%. Individual lives continues to grow nicely with an 18% increase year over year. Private annuities are the fastest growing product, having more than doubled in the last year and increasing their share of premiums to 25%.

Michela Casasa: The results are evident as we follow four key figures. 27% yearly increase in easy pay flow coming to interbank accounts and 40% increase in float from Merck. Moreover, there is a 2.2 times yearly increase in transactional volumes and 17% growth in float from micro-merchants thanks to EasyPay YACHT. Now moving to insurance, on slide 24, premiums were up 8% in the quarter and around 25% year over year, as market share of annuities remained at 29%.

Speaker Change: 7% yearly increase in EC pay flow coming to interbank accounts and 40% increase in flows from merchants.

Speaker Change: Moreover, there is a two two times yearly increase in transaction volumes and 17% growth in flash float for micro merchants, thanks to dissipate yet.

Speaker Change: Now moving to insurance on slide 24 premiums were up 8% in the quarter and around 25% year over year.

Michaela Kasasa: Now moving to insurance on slide 24, premiums were up 8% in the quarter and around 25% year over year as market share of annuities remain at 29%. Individual lives continues to grow nicely with an 18% increase year over year. Private annuities are the fastest growing product having more than doubled in the last year and increasing their share of premiums to 25%. This growth is driven by some clients switching from time deposits as banks now offer lower rates.

Speaker Change: As market share of annuities remain at 29%.

Speaker Change: Individual life continues to grow nicely with an 18% increase year over year private annuities are the fastest growing product having more than doubled in the last year and increasing their share of premiums to 25%.

Michaela Casasa: Yeah, I can remind you of the 18% ROE.

Michela Casasa: Individual life continues to grow nicely with an 18% increase year over year. Private annuities are the fastest growing product, having more than doubled in the last year and increasing their share of premiums to 25%. This growth is driven by some clients switching from time deposits as banks now offer lower rates. On the other hand, retail insurance remains stable with credit, life, and card protection experiencing good growth.

Speaker Change: This growth is driven by some clients switching from time deposits as banks now offer lower rates on the other hand retail insurance remained stable with credit life and cash protection experiencing good growth.

Michaela Kasasa: This growth is driven by some clients switching from time deposits, as banks now offer lower rates. On the other hand, retail insurance remains stable, with credit, life, and cash protection experiencing good growth. On slide 25, regarding the investment portfolio, the return on the investment portfolio increased 40 basis points compared to the previous year, mainly due to higher interest from existing income investments and an increasing rental income. And finally, on wealth management, we continue to see growth in assets under management, with a yearly growth of 15% and 5.5% on a quarterly basis, reaching the historically maximum of $6.8 billion.

Michaela Kasasa: On the other hand, retail insurance remains stable with credit, life and cash protection experiencing good growth. On slide 25, regarding the investment portfolio, the return on the investment portfolio increased 40 basis points compared to the previous year, mainly due to higher interest within from existing income investments and an increasing rental income. And finally, on wealth management, we continue to see growth in assets under management with a yearly growth of 15% and 5.5% on a quarterly basis reaching the historically maximum of $6.8 billion.

Speaker Change: On slide 25 regarding the investment portfolio. The return on the investment portfolio increased 40 basis points compared to the previous year, mainly due to higher interest received from <unk> income fixed income investments and an increase in rental income.

Michela Casasa: Slide 25, regarding the investment portfolio, the return on the investment portfolio increased 40 basis points compared to the previous year, mainly due to higher interest received from fixed income investments and an increase in rental income. And finally, on wealth management, we continue to see growth in assets under management with a yearly growth of 15% and 5.5% on a quarterly basis, reaching the historically maximum of $6.8 billion. On the back of that, there is an important recovery of fee income on a quarterly and annual basis, reaching 42 million soles, which represents a 22% growth year over year and an 11% growth from the previous quarter.

Speaker Change: And finally in wealth management, we continue to see growth in assets under management with a yearly growth of 15% and five 5% on a quarterly basis, reaching the historically maximum of six $8 billion.

Ernesto Gabilondo: My first question will be on the wealth management business.

Speaker Change: On the back of that there was an important recovery on fee income on a quarterly and annual basis, reaching $42 million.

Bruno Ferrecho: So it's probably a question for Bruno.

Michaela Kasasa: On the back of that there is an important recovery of the income on a quarterly and annual basis reaching 42 million solace which represents a 22% growth year over year and an 11% growth from their previous quarter.

Michaela Kasasa: On the back of that, there is an important recovery of the income on a quarterly and annual basis, reaching 42 million solace, which represents a 22% growth year over year and an 11% growth from their previous quarter.

Speaker Change: Which represents a 22% growth year over year, and an 11% growth from the previous quarter.

Speaker Change: Now, let me move to the final part of the presentation, where we provide an update on ESG operating trends for 2024 and some takeaways.

Michela Casasa: Now let me move to the final part of the presentation where we provide an update on ESG, Operating Trends for 2024, and some takeaways. On slide 28, we want to share our sustainability update. On the environmental front, we've completed an initial climate risk assessment at Interbank, providing a robust foundation for future climate-related strategies. Our sustainable loan portfolio has expanded to more than $200 million, reflecting our commitment to green finance.

Speaker Change: On slide 28, we want to share our sustainability update.

Speaker Change: On the environmental front, we've completed an initial climate risk assessment at interbank, providing a robust foundation for future climate related strategies are sustainable loan portfolio has expanded to more than $200 million.

Michaela Kasasa: On the environmental front, we've completed an initial climate risk assessment at Interbank providing a robust foundation for future climate related strategies. Our sustainable loan portfolio has expanded to more than 200 million dollars, reflecting our commitment to green financing. To defend a strategic partnership with NLX, we further enhance our ability to identify and offer green loan products. In the social front, we keep strengthening our digital solutions aiming to reach more Peruvian. Regarding our education, our financial education platform, Appendemas, we have already reached over a million Peruvians.

Michaela Kasasa: On the environmental front, we've completed an initial climate risk assessment at Interbank, providing a robust foundation for future climate-related strategies. Our sustainable loan portfolio has expanded to more than 200 million dollars, reflecting our commitment to green financing. To defend a strategic partnership with NLX, we further enhance our ability to identify and offer green loan products. In the social front, we keep strengthening our digital solutions, aiming to reach more Peruvians. Regarding our education, our financial education platform, Appendemas, we have already reached over a million Peruvians. In addition, our dedication to talent management has also been recognized by Merkel in Great Place to Work.

Speaker Change: Reflecting our commitment to green financing.

Speaker Change: Our strategic partnership with analytics, we further enhance our ability to identify and offer bring loan products.

Michela Casasa: To this end, a strategic partnership with NLX will further enhance our ability to identify and offer green loan products. In the social front, we keep strengthening our digital solutions aiming to reach more Peruvians. Regarding our education, our financial education platform, Apendemad, we have already reached over a million Peruvians. In addition, our dedication to talent management has also been recognized by Merco and Great Place to Work. In the governance front to foster a strong sustainability culture, we have implemented our first sustainability supply chain forum, reaching 100 key providers.

Speaker Change: In the social front, we keep strengthening our digital solutions aiming to reach morford with.

Luis Felipe Castellanos: To this end, we have invested in building a leading digital proposition, adaptable and scalable that is being rapidly adapted by potential and current customers, and we're offering 100 percential products and services to almost all segments.

Speaker Change: Regarding our application our financial education platform <unk>, we have already reached over a million routes. In addition, our dedication to talent management has also been recognized by medical and great place to work.

Michaela Kasasa: In addition, our dedication to talent management has also been recognized by Merkel in great place to work. In the governance front, to foster a strong sustainability culture, we have implemented our first sustainability supply chain forum, reaching 100 key providers. Second, our employees have been actively engaged in ESG material topics through five sustainability talks, and we supported local entrepreneurs by hosting two sustainability first at Intelligo Group.

Speaker Change: In the governance front to foster strong sustainability culture, we have implemented our first sustainability supply chain, followed reaching 100 key providers.

Michaela Kasasa: In the governance front, to foster a strong sustainability culture, we have implemented our first sustainability supply chain forum, reaching 100 key providers. Second, our employees have been actively engaged in ESG material topics through five sustainability talks, and we supported local entrepreneurs by hosting two sustainability first at Intelligo Group. Finally, as Luis Felipe produced mentioned, EuroMani has also awarded Interbank for Peru's best bank for showing strong financial performance across key metrics such as business development, increased digital solutions, and corporate governance.

Speaker Change: Second our employees have been actively engaged in ESG material topics through five sustainability tox.

Michela Casasa: Second, our employees have been actively engaged in ESG material topics through five sustainability talks. And we've supported local entrepreneurs by hosting two sustainability fairs at Intelligo. Finally, as Luis Felipe previously mentioned, Euromoney has also awarded Interbank for Peru's Best Bank for showing strong financial performance across key metrics such as business development, increased digital solutions, and corporate governance. Second, Peru's Best Digital Bank for our focus on digital innovation. And third, Peru's Best Bank for Corporate Responsibility, underscoring the positive impact of our initiative on society and the environment.

Speaker Change: And with support of local entrepreneurs by hosting to sustainability first adding valuable group.

Speaker Change: Finally, as we celebrate previous mentioned Euromoney has also a water interbank for Belarus Best Bank for showing strong financial performance across key metrics, such as business development increased digital solutions and corporate government government second best Digital bank for a focus on digital innovation and <unk>.

Michaela Kasasa: Finally, as Luis Felipe produced mentioned, EuroMani has also awarded Interbank for Peru's best bank for showing strong financial performance across key metrics such as business development, increased digital solutions and corporate governance. Second, Peru's best digital bank for our focus on digital innovation, and third, Peru's best bank for corporate responsibility, underscoring the positive impact of our initiatives on society and the environment.

Luis Felipe Castellanos: This type of recognitions make us proud, but also tells us that we continue in the right path.

Michaela Kasasa: Second, Peru's best digital bank for our focus on digital innovation, and third, Peru's best bank for corporate responsibility, underscoring the positive impact of our initiatives on society and the environment.

Speaker Change: <unk> Best Bank for corporate responsibility underscoring the positive impact of our initiatives on society and the environment.

Speaker Change: On Slide 29, let me give you an update on our operating results for the second quarter of 2024, and the comparison to guidance. We continue to present solid capital levels with total capital ratio of 15% and core equity tier one ratio of 11, 2% both above our guidance.

Michaela Casasa: Now, let me pass it on to Michaela for further explanation of our color review results.

Bruno Ferrecho: We continue to see that the earnings are still very volatile.

Michaela Kasasa: On slide 29, let me give you an update on our operating results for the second quarter of 2024 and the comparison to guidance. We continue to present sound capital levels with total capital ratio of 15% and correct with the tier 1 ratio of 11.2% both above our guidance. First half in 2024 ROE is 8.4%, still below midterm range that's recovering to 11.2% in the quarter. With a better cost of risk and the year end ROE should be above 12% as guidance.

Michaela Kasasa: On slide 29, let me give you an update on our operating results for the second quarter of 2024 and the comparison to guidance. We continue to present sound capital levels with a total capital ratio of 15% and correct with the Tier 1 ratio of 11.2%, both above our guidance. First half in 2024 ROE is 8.4%, still below midterm range that's recovering to 11.2% in the quarter. With a better cost of risk and the year-end ROE should be above 12% as guidance. We anticipate that the ROE of Interbank and Intelligo should be higher in the second half of the year, and we continue to target our midterm profitability ROE of 18%.

Michela Casasa: On slide 29, let me give you an update on our operating results for the second quarter 2024 and the comparison to guidance. We continue to present sound capital levels with total capital ratio of 15 percent and core equity tier one ratio of 11.2 percent, both above our guide. So happy.

Michaela Casasa: Thank you.

Bruno Ferrecho: I think this was the only city of the area that was affected by the explains because of the performance of investment portfolio.

Speaker Change: First half.

Speaker Change: 2020 for ROE is eight 4% still below midterm range that recovering to 11, 2% in the quarter with a better cost of risk and.

Michaela Casasa: Thank you, Refelipe.

Bruno Ferrecho: So I would like to see your thoughts on just like some future clarity to manage most table earnings in this city area.

Michela Casasa: 2024 ROE is 8.4%, still below midterm range, but recovering to 11.2% in the quarter, with a better cost of risk and. The year-end ROE should be above 12% as guidance. We anticipate that the ROE of Interbank and Inteligo should be higher in the second half of the year, and we continue to target our mid-term profitability ROE of 18%. Loan growth of around 4.5% is aligned with the guidance and expect to remain aligned throughout the year, supported by strong growth from commercial banking of the financial system and gaining market share.

Michaela Casasa: Good morning and welcome again.

Michaela Casasa: And my second question will be on asset quality.

Speaker Change: The year end ROE should be above 12% as guidance, we anticipate that the ROI of interbank and Intel level should be higher in the second half of the year and we continue to target our mid term profitability Roe of 18%.

Michaela Casasa: To begin, I would like to review the macroeconomic outlook for Peru. On flight 2, complementing what Luis Felipe just mentioned, we see signs of improvement in the macro environment, as GDP for the second quarter and specifically in the month of April and May, grew more than 5% above market expectations. It is estimated that economic activity accumulated 2.7% growth in the first half of this year. This was mainly due to the recovery of the agricultural and fishing industries with associated services. Additionally, pension funds withdraws and the availability of severance indemnity deposits contributed to activate internal consumption.

Michaela Casasa: I don't have the details on the, I don't know if we have long-term numbers for that, but 18% should be your driver unless Mikayla, I don't know if you can compliment her.

Michaela Kasasa: We anticipate that the ROE of Interbank and Intelligo should be higher in the second half of the year and we continue to target our midterm profitability ROE of 18%. Long growth of around 4.5% is aligned with the guidance and expect to remain aligned throughout the year, supported by strong growth from commercial banking of the financial system, then gaining market share. Lim for Interbank was 5.3% during the first half of the year.

Speaker Change: Loan growth of around four 5% is aligned with the guidance and expect to remain aligned throughout the year supported by strong growth from commercial banking of the financial system.

Michaela Casasa: In that line, expected growth remains biased to the upside, as we expect GDP to grow 3% in 2024. This considers the base effect versus 2023. The improvement of public investment, some positive impact from private investment and the recovery of labor intensive activities.

Michaela Kasasa: Long growth of around 4.5% is aligned with the guidance and expect to remain aligned throughout the year, supported by strong growth from commercial banking of the financial system, then gaining market share. Lim for Interbank was 5.3% during the first half of the year. We expect it to slightly recover during the year as cost of funds decreased. We continue in line with lower market rates and the efforts previously described. Cost of risk for banking was 4% in the quarter, slightly better than our expectations due to the improvement in the forward looking variables and below our guidance.

<unk> gaining market share.

Speaker Change: For interbank was five 3% during the first half of the year, we expected to slightly recover during the year as cost of funds decreased will continue in line with lower market rates and the efforts previously described.

Michaela Casasa: On the other hand, central bank has reduced reference rate by 200 basis points from 7.75 at its peak to 5.5% as of today.

Michela Casasa: NIM for Interbank was 5.3% during the first half of the year. We expect it to slightly recover during the year as cost of funds decrease will continue in line with lower market rates and the efforts previously described. Cost of risk for banking was 4% in the quarter.

Michaela Casasa: Inflation is already within its target range of at 2.3% in June, with expectations anchored at 2.2%.

Michaela Kasasa: We expect it to slightly recover during the year as cost of funds decreased, we continue in line with lower market rates and the efforts previously described. Cost of risk for banking was 4% in the quarter, slightly better than our expectations due to the improvement in the forward looking variables and below our guidance. Also mentioned in previous call. First and not by cost, and we are strictly monitoring and managing them, especially at the bank, which has reached a cost income ratio below 40%.

Speaker Change: Cost of risk for banking was 4% in the quarter slide.

Michaela Casasa: This positions the Peruvian central bank among the first central banks to successfully control inflation. Additionally, the exchange rate continues to be the most stable currency in the region.

Michaela Casasa: So we noticed the NPLs increased quite over quarter, but just with decline.

Michaela Casasa: Yeah, now maybe the only thing that I will add is that cost of risk should be closer to three.

Speaker Change: Slightly better than our expectations due to improvement in improvement in the forward looking viral growth and below our guidance also mentioned in previous call.

Michela Casasa: Slightly better than our expectations due to the improvement in the forward-looking variables and below our guidance, also mentioned in previous, Cost of risk should continue this path as we expect year-end numbers to be better than guys. And finally, we continue to see good efficiency levels at IFS in line with guidance, but slightly impacted by revenues and not by cost, as we are strictly monitoring and managing them, especially at the bank, which has reached a cost income ratio below 40%. Let me finalize the presentation with some key takeaways. First, we have seen improving banking and insurance results. Driving Earnings Recovery. Second.

Michaela Casasa: On slide 3, consistent with the previous life, we observe progress as domestic demand, consumer confidence and business trust materialize a change in their trajectory.

Michaela Casasa: In one of your peers recently anticipated that the microfinance sector and some specific SMEs and retail segments could remain challenging in the second half.

Michaela Kasasa: Also mentioned in previous call. First and not by cost, and we are strictly monitoring and managing them, especially at the bank, which has reached a cost income ratio below 40%.

Speaker Change: Cost of risk should continue this path as we expect year end numbers to be better than guidance.

Speaker Change: And finally, we continue to see good efficiency levels of ISS in line with guidance, but slightly impacted by revenues and not by cost.

Speaker Change: As we are clinically monitoring and managing them, especially in the bank, which has reached a cost income ratio below 40%.

Michaela Casasa: So I wanted to see to hear from you if you are sharing the same thoughts.

Speaker Change: Let me finalize the presentation with some key takeaways.

Michaela Kasasa: Let me finalize the presentation with some key takeaways. First, we have seen improving banking and insurance results, driving earnings recovered. Second, there is a significant growth in commercial banking loans. Third, lower cost of risk translates into better results for interbank. Fourth, continuous improvement in cost of funds. Fifth, WG growth in insurance premiums. And finally, a strong increase in asset under management in wealth management.

Speaker Change: First we have seen improving banking and insurance result.

Michaela Casasa: As a paper, we have seen growth in formal employment, especially in sectors linked to consumption, and growth in real formal wages.

Michaela Casasa: Most likely it's going to be above 3%, because of the portfolio mix and the things that we are thinking of growing in the different risk profile.

Speaker Change: Driving earnings recovery.

Speaker Change: Second.

Speaker Change: There is a significant growth in commercial banking loans.

Michaela Casasa: During June, the American increased 4.2% in real terms, which contributed to direct internal demand. Additionally, private investment accumulated two consecutive positive quarters during the first half of 2024. As so, the expectation for private investment in 2024 surpassed previous estimates, reflecting some optimism.

Michaela Casasa: Last number we have reported is still four.

Michela Casasa: There is a significant growth in commercial banking loans. Third, lower cost of risk translates into better results for Interbank. Fourth, continuous improvement in cost of funds. Fifth, double-digit growth in insurance premiums. And finally, a strong increase in asset under management in wealth management. Thank you very much.

Speaker Change: Third lower cost of risk translates into better results for interbank.

Michaela Casasa: Despite this, the total system consumer loans showed a decrease of 2.1% on a year-to-date basis, and 7% on a year-over-year basis, which indicates that this segment is still not growing.

Michaela Casasa: And if you think that those risks are already considered in your assumption for the cost of risk pointing down.

Michaela Casasa: No, this number should go back and closer to three percent, or slightly above 3%.

Speaker Change: Continuous improvement in cost of funds.

Michaela Casasa: However, total system loans increased by 1% driven by commercial loans and mortgages, which grew 1.6% and 2.8% respectively, reflecting the increase in private and public investment.

Michaela Casasa: And my last question is you can elaborate a little bit more on the potential drivers for the second half to achieve the ROE's above 12% again in the second half.

Michaela Casasa: Also in the meter.

Speaker Change: <unk> double digit growth in insurance premiums and finally, a strong increase in assets under management in wealth management.

Michaela Casasa: Moving on, it's in this context that we continue to build on our three key strategic priorities, which are first profitable growth to become a leading digital platform.

Michaela Casasa: Thank you.

Michaela Casasa: Expectation on when cost of risk was normalized to this level.

Speaker Change: Thank you very much now we welcome any questions you might have.

Michaela Casasa: Actually, you have seen already, the movement from 4.7 to 4.

Unknown Executive: Thank you very much. Now we welcome any questions you might have.

Operator: Now we welcome any questions you might. At this time, we will open the floor for your questions. First we will take the questions from the conference call and then the webcast questions. If you would like to ask a question, please press the star key followed by the number one on your touch tone phone.

Michaela Casasa: We expect to end the year in, I mean, mid three, so close to 3.5.

Operator: Now we welcome any questions you might have. At this time, we will open the floor for your questions. First, we will take the questions from the conference call, and then the webcast questions. If you would like to ask a question, please press star, the star key, followed by the number one on your touch-tone phone. Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the question queue, please press star, then two. Again, to ask a question, please press star, then one. And we will pause momentarily to compile a list of questioners.

Speaker Change: Okay.

Speaker Change: At this time, we will open the floor for your questions.

Michaela Casasa: So we take quarter over quarter to continue the decline.

Unknown Executive: At this time, we will open the floor for your questions. First, we will take the questions from the conference call, and then the webcast questions. If you would like to ask a question, please press star, the star key, followed by the number one on your touch tone phone. Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the question queue, please press star, then two. Again, to ask a question, please press star, then one. And we will pause momentarily to compile a list of questioners.

Speaker Change: First we will take the questions from the conference call and then the webcast questions.

Michaela Casasa: That's very helpful.

If you would like to ask a question. Please press star <unk>, followed by the number one on your Touchtone phone.

Michaela Casasa: Thank you both.

Operator: Questions will be taken in the order in which they are received. If at any time you would like to remove yourself from the question queue, please press star then two. Again, to ask a question, please press star, then 1. And we'll pause momentarily to compile a list of questionnaires. And the first question will come from Ernesto Gabilondo with Bank of America. Please go ahead, sir.

Questions will be taken in the order in which they are received if any time you would like to remove yourself from the question queue. Please press Star then two.

Michaela Casasa: Thank you.

Unknown Executive: At this time, we will take any webcast questions.

Speaker Change: Again to ask a question. Please press Star then one.

Ivan Peele: I would now like to turn the call over to Mr. Ivan Peele from Inspire Group.

Speaker Change: Okay.

Speaker Change: And we will pause momentarily to compile a list of questions.

Speaker Change: And the first question will come from Ernesto <unk> with Bank of America. Please go ahead Sir.

Ernesto Gabilondo: And the first question will come from Ernesto, Gabilondo, with Bank of America. Please go ahead, sir. Thank you. Hi, good morning. We're Felipe and Michelin. Good morning to all the team. Thanks for the opportunity.

Ernesto Gabilondo: And the first question will come from Ernesto Gabilondo, with Bank of America. Please go ahead, sir. Thank you. Hi, good morning. We're Felipe and Michelin. Good morning to all the team. Thanks for the opportunity.

Ernesto <unk>: Hi, good morning.

Ivan Peele: Please go ahead, sir.

Ernesto Gabilondo: Thank you. Hi, good morning Mr. Lipe and Michela and good morning to all the team. Thanks for the opportunity. My first question will be on the wealth management business. So probably it's a question for Bruno. We continue to see that the earnings are still very volatile. I think this was the only subsidiary.

Craig: Good morning, Craig.

Ivan Peele: Thank you, operator.

Michaela Casasa: At this time, there are no webcast questions, so I'd like to turn the floor back to Ms. Kasasa for closing remarks.

Michaela Casasa: We continue to grow our customers' base by double digit for all the segments consistent with the recovery in the macro environment.

Michaela Casasa: Okay, thank you very much everybody for joining our call and we really will see each other again in August for our third quarter results.

Speaker Change: For the opportunity.

Michaela Casasa: Thank you, bye bye.

Speaker Change: First question will be on the wealth management business.

Unknown Executive: This concludes today's conference call.

Bruno Ferrecho: So with regards to Intelligo's results, a couple of things first highlighting what Michela already said through the presentation is that we've been seeing very strong growth in assets and the management since basically starting for the fourth quarter of last year and going through this year.

Unknown Executive: You may now disconnect.

Ernesto Gabilondo: My first question will be on the wealth management business.

Ernesto Gabilondo: My first question will be on the wealth management business. So it's probably a question for Bruno. We continue to see that the earnings are still very volatile. I think this was the only city of the area that was affected by the explains because of the performance of investment portfolio. So I would like to see your thoughts on just like some future clarity to manage most table earnings in this city area. And my second question will be on asset quality. So we noticed the NPLs increased quite over quarter, but just with decline. In one of your peers recently anticipated that the microfinance sector and some specific SMEs and retail segments could remain challenging in the second half.

Speaker Change: Quick question for Bruno.

Ernesto Gabilondo: So it's probably a question for Bruno. We continue to see that the earnings are still very volatile. I think this was the only city of the area that was affected by the explains because of the performance of investment portfolio.

Speaker Change: We concluded that the earnings growth New Bern Bullock.

who: Who is known.

who: Hum.

who: <unk>.

who: Glenn will cover performance for investment portfolio.

Ernesto Gabilondo: Andres Soto, Bruno Rio, Michela Ramat, Valentina Porto, Alonso Arambur, Andres Soto, Bruno, And my second question will be on asset quality. So we noticed the NPLs increased quarter over quarter because of this decline. And one of your peers recently anticipated that the microfinance sector and some specific SMEs and retail segments could remain challenging in the second half. So I wanted to hear from you if you are sharing the same thoughts.

I'll now conclude the call.

Ernesto Gabilondo: So I would like to see your thoughts on just like some future clarity to manage most table earnings in this city area. And my second question will be on asset quality. So we noticed the NPLs increased quite over quarter, but just with decline. In one of your peers recently anticipated that the microfinance sector and some specific SMEs and retail segments could remain challenging in the second half. So I wanted to see to hear from you if you are sharing the same thoughts. And if you think that those risks are already considered in your assumption for the cost of risk pointing down.

who: Hum.

who: Manav most Google.

who: Hum.

who: Sure.

Speaker Change: And my second question would be on asset quality.

who: When we now do.

Speaker Change: <unk> increased quarter over quarter.

who: But across the group.

who: Sean.

Speaker Change: One of your peer group.

Sean: <unk> prudent.

Doug: Doug the microclimate kirker.

Speaker Change: Uh-huh Google fragments could.

Speaker Change: Could remain plowing hu from hub so what.

Speaker Change: Referring to some thoughts on.

Ernesto Gabilondo: So I wanted to see to hear from you if you are sharing the same thoughts. And if you think that those risks are already considered in your assumption for the cost of risk pointing down. And my last question is you can elaborate a little bit more on the potential drivers for the second half to achieve the ROE's above 12% again in the second half. Thank you.

Speaker Change: Recruiting that go through <unk> and there are some some core cost of risk coming down.

And my last question, you can elaborate a little bit more on the potential driver quarter coupon half what could be our own of all.

Ernesto Gabilondo: And my last question is you can elaborate a little bit more on the potential drivers for the second half to achieve the ROE's above 12% again in the second half.

Speaker Change: 12%.

Speaker Change: And quick one half.

Speaker Change: Okay. Thanks, very much for your questions.

Ernesto Gabilondo: And if you think that those risks are already considered in your assumption for the cost of risk trending down. And my last question is if you can elaborate a little bit more on the potential drivers for the second half to achieve the ROEs above 12% again in the second half. Thank you. Okay, Ernesto, thanks very much for your questions, to get organized, so let's go first with Bruno.

Bruno Rio: Thank you. So with regards to Intelligo's results, a couple of things first highlighting what Michela already said through the presentation is that we've been seeing very strong growth in assets and the management since basically starting for the fourth quarter of last year and going through this year. And that trend continues, so I think that we would anticipate the income to continue to build strongly in comparison to the previous periods, so that would be one source of stable revenues.

Speaker Change: To get organized so let's go first with Bruno.

Speaker Change: Yes, good morning Ernesto.

Speaker Change: So with regards to and deliver results a couple of things first highlighting with Nikola already said through the presentation as we have been seeing.

Bruno Ferrecho: Yes, good morning Ernesto. So with regards to IntelliGo's results, a couple of things first, highlighting what Michela already said through the presentation is that we've been seeing, Very strong growth in assets and the management since basically starting the fourth quarter of last year and going through this year. And that trend continues. So I think that we would anticipate fee income to continue to build strongly, in comparison to the pre the previous periods.

Bruno Ferrecho: And that trend continues, so I think that we would anticipate the income to continue to build strongly in comparison to the previous periods, so that would be one source of stable revenues.

Bruno Rio: So with regards to Intelligo's results, a couple of things first highlighting what Michela already said through the presentation is that we've been seeing very strong growth in assets and the management since basically starting for the fourth quarter of last year and going through this year. And that trend continues, so I think that we would anticipate the income to continue to build strongly in comparison to the previous periods, so that would be one source of stable revenues.

Speaker Change: Very strong growth in assets under management since.

Speaker Change: Basically starting for the fourth quarter of last year and going through this year.

Speaker Change: And that trend continues so I think thats, we would anticipate fee income to continue to build strongly.

Speaker Change: In comparison to.

Speaker Change: The previous periods, so that would be one source of.

Speaker Change: Stable revenues.

Speaker Change: The other with regards to the portfolio and your specific question.

Bruno Ferrecho: So that that would be one source of, The other, with regards to the portfolio and your specific question, a few things that we've been doing. First of all, we have been increasing our fixed income holdings and at the same time making sure that those are booked, in a way that they impact our, They don't impact our P&L on a monthly basis, because what we're trying to do is generate income from that. And so in the past, we had a lot of that impacting P&L instead of net equity.

Bruno Ferrecho: The other with regards to the portfolio on your specific question, a few things that we've been doing.

Bruno Rio: The other with regards to the portfolio on your specific question, a few things that we've been doing. First of all, we have been increasing our fixed income holdings and at the same time, making sure that those are booked in a way that they impact our PNL on a monthly basis because what we're trying to do is generate income from that. And so in the past, we had a lot of that impacting PNL instead of net equity.

Bruno Rio: The other with regards to the portfolio on your specific question, a few things that we've been doing. First of all, we have been increasing our fixed income holdings, and at the same time, making sure that those are booked in a way that they impact our PNL on a monthly basis because what we're trying to do is generate income from that. And so in the past, we had a lot of that impacting P&L instead of net equity. Okay, so we've made that change, and we continue to do so.

Speaker Change: Few things that we've been doing first of all.

Speaker Change: We have been increasing.

Bruno Ferrecho: First of all, we have been increasing our fixed income holdings and at the same time, making sure that those are booked in a way that they impact our PNL on a monthly basis because what we're trying to do is generate income from that.

Speaker Change: Our fixed income holdings.

Speaker Change: At the same time, making sure that.

Speaker Change: Those are.

Okay.

Speaker Change: In a way that.

Speaker Change: The impacts are.

Sure.

Speaker Change: They don't impact our P&L on a monthly basis, because what we're trying to do is generate income from that and so in the past we had a lot of that.

Bruno Ferrecho: And so in the past, we had a lot of that impacting PNL instead of net equity.

Speaker Change: Packing P&L instead, though.

Speaker Change: Net equity okay. So we've made that change and we continue to do so.

Bruno Ferrecho: Okay, so we've made that change and we continue to do so. The second part of it is we've been de-risking our portfolio, but as you know, and from what we've been seeing in the market for, I don't know, the last year and a half or so, we have to be patient with that because we don't want to realize losses or sell and rebalance our portfolio at a bad time. So we've been being very careful and taking the opportunity to do so throughout this year.

Bruno Ferrecho: Okay, so we've made that change and we continue to do so.

Bruno Rio: Okay, so we've made that change and we continue to do so. The second part of it is we've been, did risking our portfolio, but as you know, and from what we've been seeing in the market for, I don't know, the last year and a half or so, we have to be patient with that because we don't want to realize losses or sell and rebalance our portfolio at a bad time. So we've been being very careful and taking the opportunity to do so throughout this year and going forward, we think that our portfolio is going to be in a much better place and hopefully we are going to continue to be able to reduce the volatility that we have seen basically in the last 12 to 18 months in their portfolio.

Speaker Change: The second part of it is we have been.

Bruno Ferrecho: The second part of it is we've been, did risking our portfolio, but as you know, and from what we've been seeing in the market for, I don't know, the last year and a half or so, we have to be patient with that because we don't want to realize losses or sell and rebalance our portfolio at a bad time.

Bruno Rio: The second part of it is we've been, did risking our portfolio, but as you know, and from what we've been seeing in the market for, I don't know, the last year and a half or so, we have to be patient with that because we don't want to realize losses or sell and rebalance our portfolio at a bad time. So we've been being very careful and taking the opportunity to do so throughout this year, and going forward, we think that our portfolio is going to be in a much better place, and hopefully we are going to continue to be able to reduce the volatility that we have seen basically in the last 12 to 18 months in their portfolio.

Speaker Change: The de risking our portfolio, but as you know from what we've been seeing in the market for I don't know the last year and a half or so we have to be patient with us.

Speaker Change: Because we don't want to.

Speaker Change: Realized losses or or sale.

Speaker Change: <unk> rebalanced our portfolio at that time.

Speaker Change: So we've been being very careful in taking the opportunity to do so throughout this year and going forward. We think that our portfolio is going to be in a much better place and hopefully we are going to continue to be able to reduce the volatility that we've seen.

Bruno Ferrecho: So we've been being very careful and taking the opportunity to do so throughout this year and going forward, we think that our portfolio is going to be in a much better place and hopefully we are going to continue to be able to reduce the volatility that we have seen basically in the last 12 to 18 months in their portfolio.

Bruno Ferrecho: And going forward, we think that our portfolio is going to be in a much better place and hopefully we are going to continue to be able to reduce the volatility that we have seen basically in the last 12 to 18 months in our portfolio. Thank you, Bruno and Ernesto on your question. Let me first give it a crack and then I'll pass it on to Michela or Carlos so they can compliment.

Speaker Change: Basically in the last.

12 to 18 months in their portfolio.

Bruno: Thank you Bruno.

Bruno: Mr on your on your.

Bruno Ferrecho: Thank you Bruno.

Luis Lpez: Thank you Bruno. And Ernesto, on your question, let me first give it a crack and then I'll pass you on to Miguel, our Carlos so they can complement, but yeah, our our cost of risk is coming down basically for which are a couple of factors. First, and we've been taking actions throughout last year that obviously that takes some time, but it's already showing up so that profile of our portfolio is different to what we had some months ago.

Luis Felipe Castellanos: Thank you, Bruno. And Ernesto, on your question, let me first give it a crack and then I'll pass you on to Miguel, our Carlos, so they can complement. But yeah, our cost of risk is coming down basically for which are a couple of factors. First, and we've been taking actions throughout last year that obviously takes some time, but it's already showing up so that profile of our portfolio is different from what we had some months ago. And the customers that had high PDL's have already been provisioned, so the portfolio has had keys in that front.

Mr: Two question, let me first give it a crack and then I'll pass it on to regain our Carlos related complement but.

Michaela Casasa: Also, IFS net income more than double in the second quarter when compared to the previous one, in line with the important reduction of cost of risk at the banking.

Luis Felipe Castellanos: And Ernesto, on your question, let me first give it a crack and then I'll pass you on to Miguel, our Carlos so they can complement, but yeah, our our cost of risk is coming down basically for which are a couple of factors.

Speaker Change: Our our cost of risk is coming down.

Luis Felipe Castellanos: But yeah, our cost of risk is coming down basically for, I would say, a couple of factors. No. First, we've been taking actions throughout last year that obviously that takes some time, but it's already showing up. So that profile of our portfolio is different to what we had some months ago. And the customers that had high PDLs have already been provisioned. So the portfolio has increased in that front. Second, we've been targeting lower risk customers. So that also has an effect.

Speaker Change: Basically for which there are a couple of factors.

Speaker Change: First.

Speaker Change: We've been taking actions throughout last year that obviously that takes some time, but it's already showing up so.

Michaela Casasa: Second, create the best digital experience as now more than 80% of our retail banking customers are digital and our current NPS for retail banking is 61.

Luis Felipe Castellanos: First, and we've been taking actions throughout last year that obviously that takes some time, but it's already showing up so that profile of our portfolio is different to what we had some months ago. And the customers that had high PDL's have already been provisioned, so the portfolio has had keys in that front.

Speaker Change: The profile of our portfolio is different to what we had some months ago.

Speaker Change: And the customers that have a.

Michaela Casasa: Third, we continue to focus on our core businesses with relevant market share in consumer banking loans at 21.8%, total deposits at 13.6%, ranking number three in the Peruvian financial system and in annuities at 31% as market leader.

Luis Lpez: And the customers that had high PDL's have already been provisioned, so the portfolio has had keys in that front. Second, we've been targeting lower risk customers, so that also has an effect. And third, there's been a mouth, but still mouth, but but but at least recovery of of the economic conditions overall. So so that's what makes us to expect that this improvement plan will continue in the coming months as we continue to do risk the portfolio.

Speaker Change: Hi videos have already been provision so our portfolio has.

Speaker Change: Please.

Speaker Change: In that front.

Speaker Change: Second we've been targeting lower risk customers.

Michaela Casasa: Also, we continue to increase our market share of commercial banking to a 10.2%.

Luis Felipe Castellanos: Second, we've been targeting lower risk customers, so that also has an effect.

Luis Felipe Castellanos: Second, we've been targeting lower-risk customers, so that also has an effect. And third, there's been a mouth, but still mouth, but but but at least recovery of the economic conditions overall. So, so that's what makes us to expect that this improvement plan will continue in the coming months as we continue to do risk the portfolio. Tactically and strategically, I would say tactically because we decided to go strongly over other segments, including corporate banking and medium-sized banking and also higher income segments. And I guess that would be positively surprised by the traction that we've had with those types of customers, so that's something that has impacted positively the results of the ban.

Speaker Change: So that also has an effect on third there has been about bugs as Joe Mauer.

Luis Felipe Castellanos: And third, there's been a mild, but still mild, but at least recovery of the economic conditions overall. So that's what, makes us to expect that this improvement plan will continue in the coming months as we continue to de-risk the portfolio, tactically and strategically. I would say tactically because we decided to go strongly over other segments, including corporate banking and medium-sized bankings, and also, higher-income segments. And I guess that we've been positively surprised by the traction that we've had with those types of customers.

Michaela Casasa: And finally, in wealth management asset under management, glue 15% year over year reaching a historically maximum.

Luis Felipe Castellanos: And third, there's been a mouth, but still mouth, but but but at least recovery of of the economic conditions overall.

Speaker Change: But at least recovery.

Speaker Change: Economic conditions overall and also so that's one.

Speaker Change: It makes us to expect that this.

Michaela Casasa: Moving on, we will review four sections of our earnings presentation, sustainable growth, building a digital platform, key businesses and finally some takeaways.

Luis Felipe Castellanos: So so that's what makes us to expect that this improvement plan will continue in the coming months as we continue to do risk the portfolio.

Speaker Change: The improvement will continue in the coming months as.

Speaker Change: As we continue to de risk the portfolio.

Speaker Change: Tactically and strategically I would say tactically because we decided to go.

Michaela Casasa: Let us start with the first section which focuses on sustainable growth.

Luis Felipe Castellanos: Tactically and strategically, I would say tactically because we decided to go strongly over other segments, including corporate banking and and medium sized banking and also higher income segments.

Luis Lpez: Tactically and strategically, I would say tactically because we decided to go strongly over other segments, including corporate banking and and medium sized banking and also higher income segments. And I guess that would be positively surprised by the traction that we've had with those types of customers, so that's something that has impacted positively the results of the ban. And then jumping a little bit on your third question, if this path continues and the cost of funds continue to go down as we do expect, that only those two factors will have a positive impact on the ROE itself. So, as Michela mentioned during the call, we do expect that Interpant ROE and Intelli was ROE given in stabilization. Interpant ROE will boost ROE for the second half of the year, not that.

Speaker Change: Both strongly over other segments, including corporate banking.

Speaker Change: Medium sized banking and also higher income segments.

Speaker Change: And I guess, Scott we've been positively surprised by the traction that we've had.

Michaela Casasa: On slide seven, we wanted to share our key messages for the quarter.

Luis Felipe Castellanos: And I guess that would be positively surprised by the traction that we've had with those types of customers, so that's something that has impacted positively the results of the ban.

Speaker Change: Those types of customers.

Speaker Change: That's something that has impacted positively the results of the bank.

Luis Felipe Castellanos: So that's something that has impacted positively the results of the bank. And then jumping a little bit on your third question, if this path continues and the cost of funds continue to go down, as we do expect, only those two factors will have a positive impact on the ROE itself. So as Michela mentioned during the call, we do expect that interbank ROE and intellivous ROE, given a stabilization of market conditions, will boost ROE for the second half of the year. Not that. I'll stop there, and maybe Michela and Carlos can complement anything that.

And then.

Scott: Jumping a little bit on your on your on your third question.

Luis Felipe Castellanos: And then jumping a little bit on your third question, if this path continues and the cost of funds continue to go down as we do expect, that only those two factors will have a positive impact on the ROE itself. So, as Michela mentioned during the call, we do expect that Interpant ROE and Intelli was ROE given in stabilization. Interpant ROE will boost ROE for the second half of the year, not that.

Scott: This past continues.

Scott: The cost of funds continue to go down as we do expect that.

Scott: No.

Scott: Only those two.

Scott: <unk> will have a positive impact on the ROE itself. So.

Speaker Change: Michela mentioned during the call we do expect that inter bank ROE in Delhi was ROE given stabilization of market conditions will boom.

Luis Felipe Castellanos: So, as Michela mentioned during the call, we do expect that Interpant ROE and Intelli was ROE given in stabilization.

Speaker Change: Boost our ROE for the second half of the year.

Luis Felipe Castellanos: Interpant ROE will boost ROE for the second half of the year, not that.

Speaker Change: I'll stop there.

Speaker Change: Maybe michela and Carlos can complement anything back up.

Luis Felipe Castellanos: I stopped there and maybe Michaela and Carlos can compliment anything that I have not mentioned.

Luis Lpez: I stopped there and maybe Michaela and Carlos can compliment anything that I have not mentioned. Yeah, maybe a little bit more in relative terms Ernesto is that when you look at our portfolio, I mean, Affinity already mentioned that the risk you're part of the consumer book has decreased, it has already decreased. Okay, so this is a first consideration that is clearly showing in the downward trend of cost of risk of credit cards and personal loan and we have seen this very clear, this quarter.

Michaela Kasasa: I stopped there, and maybe Michaela and Carlos can compliment anything that I have not mentioned. Yeah, maybe a little bit more in relative terms, Ernesto, is that when you look at our portfolio, I mean, Affinity already mentioned that the risk you're part of the consumer book has decreased; it has already decreased. Okay, so this is a first consideration that is clearly showing in the downward trend of cost of risk of credit cards and personal loans, and we have seen this very clear this quarter. And the second portion, which I think is very relevant given the macro scenario, is our different strategy in commercial banking, which has always been much more conservative.

And I've mentioned.

Speaker Change: Yes, maybe a little bit more in relative terms at Nashville is that when you look at our portfolio.

Michaela Casasa: Yeah, maybe a little bit more in relative terms Ernesto is that when you look at our portfolio, I mean, Affinity already mentioned that the risk you're part of the consumer book has decreased, it has already decreased.

Michela Casasa: Yeah, maybe a little bit more in relative terms, Ernesto, is that when you look at our portfolio, I mean, Felipe already mentioned that the riskier part, the consumer group has decreased, it has already de-risked, okay? So this is a first consideration that is clearly showing in the downward trend of cost of risk of credit cards and personal loan, and we have seen this very clear this quarter. And the second portion, which I think is very relevant, given the macro scenario, is our different strategy in commercial banking, which has always been much more conservative.

Speaker Change: I mean, we finished already mentioned that the riskier part of the consumer book has decreased and has already derisked. Okay. So this is our first consideration that is clearly showing in the downward trend of cost of risk of credit cards and personal loans and we have seen this.

Michaela Casasa: First, better banking and insurance results drove earnings to grow by two foot quarter over quarter, not only because of a decline in cost of risk, but also due to higher investment results.

Michaela Casasa: Okay, so this is a first consideration that is clearly showing in the downward trend of cost of risk of credit cards and personal loan and we have seen this very clear, this quarter.

Speaker Change: Very clear this this quarter in the second quarter, which I think is very relevant.

Michaela Casasa: And the second portion, which I think is very relevant given the macro scenario is our different strategy in commercial banking, which has always been much more conservative.

Luis Lpez: And the second portion, which I think is very relevant given the macro scenario is our different strategy in commercial banking, which has always been much more conservative. First, because of the incidence of the small businesses in a portfolio, remember that we only have like three, four percent market share in SMEs, the small ones. And given that we've been lending in Pulsome Peru, the cost of risk of that segment has significantly decreased.

Speaker Change: Given the macro scenario is our different strategy in commercial banking now, which has always been much more conservative first because of the incidence of the small businesses in our portfolio remember that we only have like three 4% market share in Smes, the small ones and given that we've been led.

Michaela Casasa: First, because of the incidence of the small businesses in a portfolio, remember that we only have like three, four percent market share in SMEs, the small ones.

Michaela Kasasa: First, because of the incidence of the small businesses in a portfolio, remember that we only have like three, four percent market share in SMEs, the small ones. And given that we've been lending in Pulsome, Peru, the cost of risk of that segment has significantly decreased. So it has decreased, I don't know, like 700 basis points over the past year. Okay, so we don't have a big portfolio in the micro segment, which is the one that is hit because only now you start to see the problems with that segment that was helped first by Reactiva. Then by the multiple extension that the Reactiva program had for that specific sentence.

Michela Casasa: First, because of the incidence of the small businesses in our portfolio, remember that we only have like 3%, 4% market share in SMEs, the small ones, and given that we've been lending in Pulso Mi Peru, the cost of risk of that segment has significantly decreased. So it has decreased, I don't know, like 700 basis points over the past year, okay? So we don't have a big portfolio in the micro segment, which is the one that is here because only now you start to see the problems from that segment that was helped first by Reactiva, then by the multiple extension that the Reactiva program had for that specific... And the second portion of our more conservative approach in commercial loans is in the mid-size companies, where when you look at our PDL ratios, it's the lowest between the four big banks in the country. It has always been the case because we are conservative and we focus on the better risk profile clients.

Ending in <unk> the cost of risk of that segment has significantly decreased so it has decreased I don't know like 700 basis points over the past year. Okay. So we don't have a big portfolio in the micro segment, which is the one that is key because.

Michaela Casasa: And given that we've been lending in Pulsome Peru, the cost of risk of that segment has significantly decreased. So it has decreased, I don't know, like 700 basis points over the past year.

Luis Lpez: So it has decreased, I don't know, like 700 basis points over the past year. Okay, so we don't have a big portfolio in the micro segment, which is the one that is hit because only now you start to see the problems with that segment that was helped first by reactiva. Then by the multiple extension that the reactiva program had for that specific sentence. And the second portion of our more conservative approach in commercial loans is in the mid-sized companies where when you look at our PDL ratios is the lowest in between the four big banks in the countries and has always been the case because we are conservative and we focus on the better risk profile clients.

Michaela Casasa: Okay, so we don't have a big portfolio in the micro segment, which is the one that is hit because only now you start to see the problems with that segment that was helped first by reactiva.

Speaker Change: Only now you start to see the progress in that segment that was held first by RAF fever than by the multiple expansion. The direct fever program had for that specific segment.

Michaela Casasa: Then by the multiple extension that the reactiva program had for that specific sentence.

Speaker Change: And the second portion of our more conservative approach in commercial loans is in the mid sized companies, where when you look at our PDL ratios is the lowest in.

Michaela Casasa: And the second portion of our more conservative approach in commercial loans is in the mid-sized companies where when you look at our PDL ratios is the lowest in between the four big banks in the countries and has always been the case because we are conservative and we focus on the better risk profile clients.

Michaela Kasasa: And the second portion of our more conservative approach in commercial loans is in the mid-sized companies where, when you look at our PDL ratios, is the lowest in between the four big banks in the countries and has always been the case because we are conservative and we focus on the better risk profile clients. So I guess you see a continuous deterioration of PDL ratios in the system of mid-sized companies and small businesses that is not the case and not to that extent in the interbank portfolio. And linked to that, the trend in the ROE for the second half is actually coming from two specific things: is the ROE of interbank that, with a lower cost of risk, starts to get closer to the target level.

Speaker Change: The four big banks in the countries. It has always been the case, because we are conservative and we focus on the better.

Speaker Change: <unk> risk for pipelines. So I guess you see a continued deterioration of PDL ratio is in the system of midsize companies and small businesses.

Michaela Casasa: So I guess you see a continuous deterioration of PDL ratios in the system of mid-sized companies and small businesses that is not the case and not to that extent in the in the interbank portfolio.

Luis Lpez: So I guess you see a continuous deterioration of PDL ratios in the system of mid-sized companies and small businesses that is not the case and not to that extent in the in the interbank portfolio. And linked to that, the trend in the ROE for the second half is actually coming from two specific things is the ROE of interbank that with a lower cost of risk starts to get closer to the target level.

Michela Casasa: So I guess you see a continuous deterioration of PDL ratios in the system of mid-size companies and small businesses, but it's not the case and not to that extent in the interbank portfolio. And linked to that, the trend in the ROE for the second half is actually coming from two specific things. It's the ROE of interbank that with a lower cost of risk starts to get closer to the target level. So we have seen already a double-digit ROE interbank this quarter, and that ROE should just continue to grow in the next quarter because of a lower cost of risk. And the second one is Intelligo.

Speaker Change: That is not the case and not to that extent in the in the interbank portfolio.

Speaker Change: And linked to that the trend in the ROE for the second half is actually coming from two specific things is the aero you've interbank that with a lower cost of risk starts to get closer to the target level. So we have seen already now a double digit ROE in the bank this quarter in that row.

Michaela Casasa: This result in an ROE that has doubled to 11.2% from the previous quarter with an income of 286 million solid.

Michaela Casasa: And linked to that, the trend in the ROE for the second half is actually coming from two specific things is the ROE of interbank that with a lower cost of risk starts to get closer to the target level. So we have seen already, no, a double digit ROE interbank this quarter and that ROE should just continue to grow in the next quarter because of a lower cost of risk.

Luis Lpez: So we have seen already, no, a double digit ROE interbank this quarter and that ROE should just continue to grow in the next quarter because of a lower cost of risk. And the second one is in Telugu, no? Of course, there is a little bit more uncertainty there, given market conditions, but we expect a much higher ROE for the second half of the year in Telugu when you compare it to the first.

Michaela Casasa: Second, cost of risk decreased by 70 basis points on the quarter and more than 120 basis points from the peak of the fourth quarter 23.

Michaela Casasa: And the second one is in Telugu, no?

Michaela Kasasa: So we have seen already, no, a double digit ROE interbank this quarter, and that ROE should just continue to grow in the next quarter because of a lower cost of risk. And the second one is in Telugu, no? Of course, there is a little bit more uncertainty there, given market conditions, but we expect a much higher ROE for the second half of the year in Telugu when you compare it to the first. I'm not sure where this covers; it's up.

Speaker Change: Should just continue to grow in the next quarter because of a lower cost of risk and the second one is in Pentagon of course, there is a little bit more of uncertainty there given market conditions back in.

Michela Casasa: Of course, there is a little bit more of uncertainty there given market conditions, but we expect a much higher ROE for the second half of the year at Intelligo when you compare it to the first half. I'm not sure where this discovery is up. Now very detailed, super careful. Thank you very much, Luis Felipe, Bruno and Michela. Thank you, Ernesto. The next question will come from Carlos Gomez with HSBC. Please go ahead.

Michaela Casasa: As such, we see better results for Interbank with 4% higher ROE than the previous quarter. Third, the cost of funds continues to improve decreasing 40 basis points year over year and from the previous quarter, outperforming the system average. This improvement is not only due to the decline in market rate, but also because of a proactive management of efficient funding and enhancing the funding mix.

Michaela Casasa: Of course, there is a little bit more uncertainty there, given market conditions, but we expect a much higher ROE for the second half of the year in Telugu when you compare it to the first.

Speaker Change: We expect a much higher ROE for the second half of the year and intangible when you compare it to the first half.

I'm not sure where this discovery is up.

Michaela Casasa: Fourth, we are tactically risking the portfolio, giving current system dynamics and this is why there has been a significant growth in commercial banking with in Pulsome Peru, with over 15% growth year over year in commercial loans.

Michaela Casasa: I'm not sure where this covers, it's up.

Luis Lpez: I'm not sure where this covers, it's up. Now very detailed, super careful.

Speaker Change: Now very details Super helpful. Thank you very much recently Bourbon on gorilla.

Michaela Casasa: Now very detailed, super careful.

Unknown Executive: Now very detailed, super careful.

Michaela Casasa: Thank you very much, Luis Alita, Bruno, and Michela.

Luis Lpez: Thank you very much, Luis Alita, Bruno, and Michela.

Unknown Executive: Thank you very much, Luis Alita, Bruno, and Michela.

Christina: Thank you Christina.

Christina: The next question will come from Carlos Gomez with HSBC. Please go ahead.

Carlos Gomez: Thank you.

Unknown Executive: Thank you.

Carlos Gomez: The next question will come from Carlos Gomez, with HSBC, please go ahead.

Carlos Gomez: The next question will come from Carlos Gomez, with HSBC, please go ahead. Yes, hello. Good morning, thank you for taking my question. I went to ask you first about the, you mentioned reactiva and the guarantees and the fact that the new program also has guarantees. What was your experience with the performance of the reactiva program? I mean, to do the guarantees, you know, significantly reduce your costs and that the government incur a significant cost in that type of program.

Carlos Gomez: The next question will come from Carlos Gomez, with HSBC. Please go ahead. Yes, hello. Good morning, thank you for taking my question. I went to ask you first about the, you mentioned Reactiva and the guarantees and the fact that the new program also has guarantees. What was your experience with the performance of the Reactiva program? I mean, to do the guarantees, you know, significantly reduce your costs and that the government incur a significant cost in that type of program. Second, we know that there was a savings bank that failed in the quarter. How do you see the financial system in general?

Carlos Gomez: Yes, Hello, good morning, and thank you for taking my question.

Carlos Gomez: Yes, hello.

Carlos Gomez: Yes, hello, good morning and thank you for taking my question. I want to ask you first about the, You mentioned REACTIVA and the guarantees and the fact that the new program also has guarantees. What was your experience with the performance of the REACTIVA program?

Speaker Change: I want to ask you first.

Carlos Gomez: Good morning, thank you for taking my question.

Michaela Casasa: Additionally, we have gained more than 80 basis points of market share in this segment over the past year, highlighting mid-sized companies that we have consolidated their positions as number three reaching 12.3% market share.

Carlos Gomez: I went to ask you first about the, you mentioned reactiva and the guarantees and the fact that the new program also has guarantees.

Carlos Gomez: <unk>.

Speaker Change: You mentioned breath fever, and the guarantees and the fact that the new program ultra harsh guarantees.

Speaker Change: What was your experience with the performance of the receiver program due to the guarantees.

Michaela Casasa: Fifth, there has been an important growth in insurance premiums that generated improvement in insurance core business and the recovery of investment results in higher net income.

Carlos Gomez: What was your experience with the performance of the reactiva program?

Speaker Change: Significantly reduce your caution that's the government equally significant cost.

Michaela Casasa: Finally, in wealth management, assets under management continue to grow nicely reaching a historically maximum driving also fee income up.

Carlos Gomez: I mean, to do the guarantees, you know, significantly reduce your costs and that the government incur a significant cost in that type of program.

Carlos Gomez: Do the guarantees significantly reduce your costs and does the government incur a significant cost in that type of program? Second, we know that there was a savings bank that failed in the quarter. How do you see the financial system in general and are you concerned perhaps by some of your counterparty risks? And finally, could you elaborate on the reason to integrate EasyPay and not have it as a separate segment anymore? It was actually quite useful to be able to monitor. Thank you. Yeah, Carlos, can you repeat your question number two, please? I didn't get it very well.

Speaker Change: The type of program.

Speaker Change: Second we know that there was the savings banks that failed in the quarter, how do you see the financial system in general.

Michaela Casasa: As you can see, we are reporting ISS figures in its three operating segments, banking insurance and wealth management.

Carlos Gomez: Second, we know that there was a savings bank that failed in the quarter.

Carlos Gomez: Second, we know that there was a savings bank that failed in the quarter. How do you see the financial system in general? And are you concerned perhaps by some of your counter-party risks? And finally, could you elaborate on the inter, the reason to integrate ECB and not have it as separate equipment anymore? It was actually quite useful to be able to monitor. Thank you. Carlos, can you repeat your question number two, please?

Carlos Gomez: How do you see the financial system in general?

Speaker Change: You confirm perhaps by some of your counterparty risks and finally could you elaborate on the reason to integrate easy pay and not having a separate segment and I'm wondering what is actually quite useful to be able to manage those thank you.

Carlos Gomez: And are you concerned perhaps by some of your counter-party risks?

Michaela Casasa: Payments will no longer be a separate segment, as it has become an intake report of the core offering of and very synergic with the banking fund.

Carlos Gomez: And finally, could you elaborate on the inter, the reason to integrate ECB and not have it as separate equipment anymore?

Carlos Gomez: And finally, could you elaborate on the inter, the reason to integrate ECB and not have it as separate equipment anymore? It was actually quite useful to be able to monitor. Thank you. Carlos, can you repeat your question number two, please? I didn't get it very well. I think my question was in regard to, I think, Caja Soliana was the one that failed, and whether you are concerned about other institutions in the financial system in Peru. Okay, okay, great. Let me start addressing that question. And so, I think that we are not concerned about the financial system.

Michaela Casasa: On slide A, we can see Ernest at 286 million soles in the quarter, although we are still below the levels of a year ago, we have doubled from the net income reported last quarter.

Carlos Gomez: It was actually quite useful to be able to monitor.

Speaker Change: Carlos can you repeat your question number two please I didn't get it very well.

Michaela Casasa: In banking, the quarter of a quarter comparison is very positive. We know it to be at 11.1%, which is higher than the previous quarter by 400 basis points.

Carlos Gomez: Thank you.

Michaela Casasa: In the insurance business, there is a recovering investment portfolio, adjusting the non recurring events from the premium quarter, the net income has no significant changes.

Carlos Gomez: Carlos, can you repeat your question number two, please?

Carlos Gomez: I didn't get it very well.

Carlos Gomez: I didn't get it very well. I think my question was in regard to, I think, Caja Soliana was the one that failed, and whether you are concerned about other institutions in the financial system in Peru. Okay, okay, great.

Speaker Change: My question was in regards to I think as Giuliana was the one that failed.

Carlos Gomez: I think my question was in regard to, I think, Caja Soliana was the one that failed, and whether you are concerned about other institutions in the financial system in Peru.

Carlos Gomez: I think my question was in regard to I think Caja Suleana was the one that failed and whether you are concerned about other institutions in the financial system in Peru. Okay, okay, great. Let me start by addressing that question. So I think that we are not concerned about the financial system. I think that the system, the Peruvian system is very well regulated, it's very well provisioned, it's very well capitalized. Obviously, with so many months of a low growth, even last year, we had a small recession.

And whether you are concerned about other institutions in the financial system.

Speaker Change: Okay, Okay great.

Speaker Change: Let me let.

Carlos Gomez: Okay, okay, great.

Speaker Change: Let me try to address that question.

Michaela Casasa: Finally, on the wealth management business, there is a good dynamic with clients as asset under management continue to grow, but the investment portfolio hasn't performed as expected compensating the improvement in free income, resulting in an ROE of 2.7% this quarter.

Luis Felipe Castellanos: Let me start addressing that question.

Luis Lpez: Let me start addressing that question. And so, I think that we are not concerned about the financial system. I think that the system, the Peruvian system is very well regulated. It's very well provisioned. It's very well capitalized. Obviously, with so many months of low growth even last year, we had a small recession. Things are complicated for some institutions, especially the ones targeting the higher risk segments, but it's not something that is affecting the majority of the institutions.

Speaker Change: And so.

Michaela Casasa: On a cumulative basis, the wealth management ROE is around 7%, having a higher net income of 10%, when comparing to first half 23%.

Luis Felipe Castellanos: And so, I think that we are not concerned about the financial system.

Speaker Change: I think that.

Speaker Change: We are not concerned about the financial system I think that the assistant the Peruvian system is very well regulated is very well provision is very well capitalized obviously with so many months of.

Michaela Casasa: On slide 9, we see a year-over-year growth of revenues of 2%, mainly due to a sustained better performance of insurance core business compensated by lower revenues from wealth management.

Luis Felipe Castellanos: I think that the system, the Peruvian system is very well regulated.

Luis Felipe Castellanos: I think that the system, the Peruvian system, is very well regulated. It's very well provisioned. It's very well capitalized. Obviously, with so many months of low growth, even last year, we had a small recession. Things are complicated for some institutions, especially the ones targeting the higher risk segments, but it's not something that is affecting the majority of the institutions. I would tend to believe and understand that these are isolated cases. So, there's not a significant concern. I think that Supervisory by the SPS is working well. They are very creative and make sure that things don't get complicated for customers.

Michaela Casasa: On a quarterly basis, there is also a slightly higher revenue in banking, which we will explain in later slides.

Luis Felipe Castellanos: It's very well provisioned.

Michaela Casasa: On slide 10, we wanted to follow up with the evolution of the asset quality of the loan portfolio.

Luis Felipe Castellanos: It's very well capitalized.

Michaela Casasa: First, we have increased our exposure to commercial banking passing from 44% in the second quarter 23 to 47% of Interbank's portfolio as of the second quarter 24%.

Luis Felipe Castellanos: Obviously, with so many months of low growth even last year, we had a small recession.

Speaker Change: Low Roes, even last year, we had a more recession.

Carlos Gomez: Things are complicated for some institutions, especially the ones targeting the higher risk segments. But it's not something that is affecting the majority of the institutions. I would tend to believe and understand that these are isolated cases.

Speaker Change: Things are complicated for some institutions, especially the ones.

Luis Felipe Castellanos: Things are complicated for some institutions, especially the ones targeting the higher risk segments, but it's not something that is affecting the majority of the institutions.

Speaker Change: Getting the higher.

Speaker Change: <unk> segments.

Speaker Change: But it's not something that is affecting.

Speaker Change: The majority of the institutions.

Speaker Change: I would tend to believe understand that these are isolated cases.

Luis Felipe Castellanos: I would tend to believe and understand that these are isolated cases.

Luis Lpez: I would tend to believe and understand that these are isolated cases. So, there's not a significant concern. I think that Supervisory by the SPS is working well. They are very creative and make sure that things don't get complicated for customers. So, that's on that part of the question. And our exposure to those types, from the intervention perspective, for those types of institutions is negligible, extremely limited. So, there's no concern on that front from the intervention perspective as well.

Luis Felipe Castellanos: And so there's not a significant concern. I think that supervisory by the SPS is working well. They are very preemptive in making sure that things don't get complicated for customers.

So there is not a significant concern I think that super <unk> by the SBA is working well they are very preemptive.

Luis Felipe Castellanos: So, there's not a significant concern.

Luis Felipe Castellanos: I think that Supervisory by the SPS is working well.

Speaker Change: And making sure that things don't get complicated for our customers.

Luis Felipe Castellanos: They are very creative and make sure that things don't get complicated for customers.

Speaker Change: So that's.

Speaker Change: That's on that part of the question on our exposure to those types from the interbank perspective for those types of institutions is negative is negligible extremely limited. So there's no I've answered on that front.

Luis Felipe Castellanos: So that's on that part of the question. And our exposure to those types from the interbank perspective for those types of institutions is negligible, extremely limited. So there's no concern on that front from the interbank perspective as well. Then, on the experience of the REACTIVA and IMPULSO, I'm going to pass it on to Carlos as well as question number three. However, it's two different things.

Luis Felipe Castellanos: So, that's on that part of the question.

Luis Felipe Castellanos: So, that's on that part of the question. And our exposure to those types, from the intervention perspective, for those types of institutions is negligible, extremely limited. So, there's no concern on that front from the intervention perspective as well.

Luis Felipe Castellanos: And our exposure to those types, from the intervention perspective, for those types of institutions is negligible, extremely limited.

Luis Felipe Castellanos: So, there's no concern on that front from the intervention perspective as well.

Speaker Change: From the intervention perspective as well.

Speaker Change: And then.

Speaker Change: On the experience of that.

Michaela Casasa: Tactically, taking advantage of the Impulsome Value Program, which has allowed us to grow with a better risk-adjusted result in small and medium-sized companies.

Carlos Tori: And then, on the experience of the reactiva and impulso, I'm going to pass on to Carlos as well as question number three.

Luis Lpez: And then, on the experience of the reactiva and impulso, I'm going to pass on to Carlos as well as question number three. However, it's two different things. No, reactiva was something that was built to face COVID. We had a positive experience, but different to impulso, which is a program targeted to boost recovery from last year's issues. So, there are two different programs. In both cases, our experience has been positive, but let me pass it on to Carlos' story, so keep on compliment.

Carlos Tori: And then, on the experience of the Reactiva and Impulso, I'm going to pass on to Carlos as well as question number three. However, it's two different things. No, Reactiva was something that was built to face COVID. We had a positive experience, but different to Impulso, which is a program targeted to boost recovery from last year's issues. So, there are two different programs. In both cases, our experience has been positive, but let me pass it on to Carlos' story, so keep on compliment. That and on your question about ECP and Interband, as well. Thank you, Luis López.

Speaker Change: And improve so I'm going to pass to Carlos as well as now a closer number three however, it's two different things not reactive was something that was built to face covet.

Luis Felipe Castellanos: REACTIVA was something that was built to face COVID. We had a positive experience, but different to IMPULSO, which is a program targeted to boost recovery from last year's issues. So there are two different programs.

Michaela Casasa: This segment continues to perform well in our portfolio, even when excluding the guaranteed Impulsome Value portion.

Carlos Tori: However, it's two different things.

Michaela Casasa: Second, the mix of our consumer portfolio has changed. The unsecured portion, which comprises credit cards and personal loans, has decreased, now representing 19% of the total loan book, down from 21% in the previous quarter and 24% a year ago.

Carlos Tori: No, reactiva was something that was built to face COVID.

Speaker Change: We had a positive experience by different to <unk>, which is.

Michaela Casasa: We have seen this trend happening also at market level when consumer lending decreasing year over year.

Carlos Tori: We had a positive experience, but different to impulso, which is a program targeted to boost recovery from last year's issues.

Speaker Change: Program targeted to boost.

Speaker Change: Coverage from last years issue. So there are two different programs in both cases, our experience has been positive, but let me pass it onto Carlos story, So keybank complement that and on your question about dissipate.

Michaela Casasa: Meanwhile, terrible deductible loans to the public sector employees, a very low risk product, now represents 13% of the loan book. Consequently, we wanted to highlight that this quarter, we see the inflection point of the consumer portfolio, not only due to the change in mix, but also because of a better payment behavior from customers.

Carlos Tori: So, there are two different programs.

Carlos Tory: In both cases, our experience has been positive. But let me pass it on to Carlos Torres so he can complement that and on your question about easy pay and, Interim Interim Thank you, Luis Felipe. Exactly the let me go through reactiva first.

Michaela Casasa: Additionally, this quarter, with a better looking macro environment, the cost of risk is reflecting a downward trend, decreasing from 4.7% of the previous quarter and from the peak of 5.2% in the fourth quarter 23.

Luis Lpez: That and on your question about ECP and and Interband, as well. Thank you, Luis Lpez. And exactly, the, let me go through reactive afters. It was a program during COVID, which came with funding from the, from the government, a very, very low cost rates and long term. The experience has been good, obviously, both for our clients and the system as well as for the banks. The loans were very small, so the operation and process of a dispersing and getting back guarantees from the war, etc, wasn't perfect, but it's worked well.

Speaker Change: <unk>.

Speaker Change: Interbank as well.

Speaker Change: Thank you Leslie.

Michaela Casasa: There is good news as these levels are not only lower than the previous quarter but are also slightly better than ours.

Speaker Change #100: Let me go through review of our first was a forum during Covid.

Carlos Tory: It was a program during COVID, which came with funding from the, from the government at very, very low cost rates and long term. The experience has been good, obviously, both for our clients and the system, as well as for the for the banks. The loans were very small, so the operational process of disbursing and getting back the guarantees from the board, etc. wasn't perfect, but it's worked well. And we still have a small outstanding, but that portfolio basically is being repaid.

Michaela Casasa: Estimates.

Carlos Tori: And exactly, the, let me go through reactive afters. It was a program during COVID, which came with funding from the government, a very, very low cost rates and long term. The experience has been good, obviously, both for our clients and the system as well as for the banks. The loans were very small, so the operation and process of dispersing and getting back guarantees from the war, etc., wasn't perfect, but it's worked well. And we still have a small outstanding, but that portfolio, basically, is being repaid. Most of it is at the end of this year, and there's going to be very little left for the first quarter.

Michaela Casasa: Finally, the change in trend is also reflected in the MPL, which picked in the first quarter 24 and has started to decline to 3.7% in this second quarter, maintaining a lower NPL compared to our peers.

Speaker Change #100: Which.

Speaker Change #100: With funding from the.

Speaker Change #101: From the governments are very very low cost rates.

Speaker Change #101: Long term.

Speaker Change #102: The experience having boots, obviously, both for our clients in the system as well as for the former box.

Michaela Casasa: On slide 11, complementing the previous slide, the rescuerings have slightly decreased, now representing around 19% of the retail and secure portfolio. As mentioned in previous calls, the payment behavior for performing knowns is quite different for customers with rescuers. The unpaid portion for regular customers is only 1.4%, while it is around 10% for rescuers, clients, for installments and materials as of June.

Carlos Tori: In both cases, our experience has been positive, but let me pass it on to Carlos' story, so keep on compliment.

Speaker Change #101: <unk>.

Speaker Change #101: The loans were very small so the operational process.

Michaela Casasa: Now, we have observed an improvement in the payment behavior of customers on the back of the liquidity events of the second quarter, such as availability of severance indemnity deposits and pension funds withdraw. And also because of proactive action taken in collections, this is evident in the reduction of the unpaid installments by the rescued clients passing from 15.8% to 10.5%.

Speaker Change #103: We're seeing and getting back their adhesion barrier oriented wasn't perfect, but it's worked well.

Speaker Change #103: We still have a small outstanding but that portfolio basically.

Michaela Casasa: Finally, on this section of slide 12, as always, we wanted to highlight the type of cost management we continue to pursue with focus ISS level versus the previous year and only 3% increase from the banking segment. With this, the efficiency ratio is 38.6% for ISS and 39.7% for Interbank.

Luis Lpez: And we still have a small outstanding, but that portfolio, basically, is being repaid. Most of it is at the end of this year and there's going to be very little left for first quarter. Next year, of next year. Impulso is a different program. It does have a guarantee for the government, depending on the size of the loan, those from like 60% guarantee to like 90%, but it comes with our funding and the show that the economics on those loans obviously reflect a lower risk, but also have more economic return.

Speaker Change #103: <unk> is being repaid most of it at the end of this year and there is going to be very little lift for first quarter of mix of next year Influencer is a different program.

Michaela Casasa: Moving on to the section of building a digital platform.

Carlos Tory: Most of it at the end of this year, and there's going to be very little left for first quarter of next of next, Impulso is a different program. It does have a guarantee for the government depending on the size of the loan, it goes from like 60% guarantee to like 90%.

Michaela Casasa: On slide 15, we have positive news in our digital indicators, which continues to show nice trends when compared to the previous year. As of June 24, digital sales reached 68% at four points from last year.

Carlos Tori: Next year, of next year.

Michaela Casasa: And digital customers reached 81% of retail customers who interact with our digital channels without going to the stores at six points from the past year.

Luis Lpez: So it's a different program that gives the clients a longer term fund, which is very helpful for them, and it gives the economy a boost, but it's a different program, I would say, better and more sustainable. It's probably more comparable to similar programs that we see in other countries in the region, and it could be a program that stays along the next couple of years, so very different to Russia, both positive.

Carlos Tori: Impulso is a different program. It does have a guarantee for the government, depending on the size of the loan; those from like 60% guarantee to like 90%, but it comes with our funding and the show that the economics on those loans obviously reflect a lower risk, but also have more economic return. So it's a different program that gives the clients a longer term fund, which is very helpful for them, and it gives the economy a boost. But it's a different program, I would say, better and more sustainable. It's probably more comparable to similar programs that we see in other countries in the region, and it could be a program that stays along the next couple of years, so very different to Russia, both positive.

It does have a royalty for the government depending on the size of the loan goes from like 60% are guaranteed to 90%.

Michaela Casasa: Furthermore, our digital sales service indicator is 77% and our MPS in our retail customers is 61%.

Speaker Change #103: But.

Speaker Change #103: In.

But it comes with our funding.

Carlos Tory: But it, But it comes with our funding and the so the economics on those loans obviously reflect a lower risk, but also have more economic return for the banks. So, so it's a different program that gives the clients a longer term funds, which is very helpful for them and it gives the economy a boost. But it's a different program, I would say, better and more sustainable, probably more comparable to similar programs that we see in other countries in the region. And it could be a program that stays, along the next couple of years, so very different to RACIBA, both positive. Is that a...

Speaker Change #103: So.

Speaker Change #103: Economics on those loans, obviously reflect a lower risk, but also have more economic return or the box. So it's a different program.

Michaela Casasa: As part of our digital value added proposition to enhance customer experience, we want to give you a quick summary of the recent developments on clean.

The clients.

Speaker Change #103: Longer term funds, which is very helpful for them.

Speaker Change #103: And we do see a Columbia boots, but it's a different firm I would say.

Speaker Change #103: Better and more sustainable.

Speaker Change #103: To be more comparable to similar programs that we see in other countries in the region and it could be a forum that space.

Michaela Casasa: The interoperable P2P system continues to enable Clean to accelerate its growth as volume expand by twofold in one year, in users which more than 9 million by the end of June, with Interbank participation stable at 44%.

Speaker Change #103: Along the next couple of years.

Speaker Change #103: So very good direct here both positive.

Speaker Change #103: In.

Speaker Change #103: Is that I don't know that.

Michaela Casasa: Moreover, our active users have grown to 2.2 million, as 33% increase compared to last year, and this should result in a higher engagement of clients with Interbank. The campaigns such as Yapet, Plineame, and Clean TOS have allowed Interbank to increase in transactions by 2.8 times.

Luis Lpez: Is that a... Actually, I'm curious about your credit flows experience in these programs, and I understand the different types of companies. No, it was very low, very low credit flows, much lower than... But that's after the guarantee, I would imagine, or before the guarantee. Both, actually, but after guarantee, definitely, no. I mean, after guarantee, much lower than the rest of our portfolio, and before guarantee, it's similar to our portfolio. Thank you.

Carlos Tori: Is that a... Actually, I'm curious about your credit flows experience in these programs, and I understand the different types of companies. No, it was very low, very low credit flows, much lower than... But that's after the guarantee, I would imagine, or before the guarantee. Both, actually, but after guarantee, definitely, no. I mean, after guarantee, much lower than the rest of our portfolio, and before guarantee, it's similar to our portfolio. Thank you.

Speaker Change #104: But I'll tell you.

Carlos Tory: I don't know if that has your... Well, actually, I'm curious about your credit loss experience in this program. So I understand there are different types of companies. No, it was very low, very low grade loss, much lower than but that's after the after the guarantee I would imagine or before the guarantee, Both actually, but, uh, but yeah, I'll say what I see this.

Speaker Change #105: I'm curious I'm curious about your credit loss experience in this program. So I understand there are different types of companies.

Speaker Change #105: No it was very low loss ratios.

Speaker Change #106: Much lower but thats after the after the commentary I would imagine or before the guarantees.

Speaker Change #106: Both actually but yes.

Speaker Change #106: Yes.

Speaker Change #106: Yeah.

Speaker Change #106: Yes.

Speaker Change #106: After or be much lower than the rest of our portfolio and before the RFP.

Carlos Tory: Yeah, I mean, after the R&D much lower than the rest of our portfolio and before the R&D. Similar work. And then on EasyPay, so the rationale behind the acquisition of EasyPay and the vision going forward has always been the integrating it to the business of the bank. There are a lot of synergies, particularly with our commercial banking segment in terms of bringing in the flows and having the flow and strengthening the relationship with the clients.

Speaker Change #106: Similar to our portfolio.

Speaker Change #106: Okay. Thank you.

Speaker Change #106: On easy pay.

Carlos Tory: And also on the payment side, there are a lot of synergies in terms of which systems and which networks we use to transfer payments and the funds. So we've been going forward with that strategy. We've made some more changes to.., poster that those synergies are working together. So we feel like the standalone, Financials of easy pay no longer reflect the actual results because there's different things going on. We will continue to show the operational numbers and transactions and things like that. But, but, But yeah, so so that's the reason why we haven't shown the easy pay numbers.

Michaela Casasa: This development is helping to bring more Peruvians into the financial system, reducing the use of cash which continues to be high in the country.

Carlos Tori: That and on your question about ECP and and Interband, as well.

Carlos Story: And then on Easy Pay, so the rationale behind the acquisition of Easy Pay and the vision going forward has always been the integrating it to the business of the bank. There are a lot of synergies, particularly with our commercial banking segment in terms of bringing in the flows and having the flows and strengthening the relationship with the clients. And also, on the payment side, there are a lot of synergies in terms of which systems, and which networks we use to transfer payments and the funds.

Carlos Tori: And then on Easy Pay, so the rationale behind the acquisition of Easy Pay and the vision going forward has always been the integrating it to the business of the bank. There are a lot of synergies, particularly with our commercial banking segment in terms of bringing in the flows and having the flows and strengthening the relationship with the clients. And also, on the payment side, there are a lot of synergies in terms of which systems and which networks we use to transfer payments and the funds. So, we've been going forward with that strategy. We've made some more changes to...

Speaker Change #107: So the rationale behind the acquisition of VC PE and the vision going forward has always been integrating it to the business of the bank.

Speaker Change #107: There are a lot of synergies, particularly with our commercial banking segment.

Michaela Casasa: Insurance and wealth management digital indicators show positive developments as well, with digital sales service reaching 66% at Interseguro, so at digital sales reaching 82%, and digital premiums for Vida slowly gaining relevance which is 13%, and Wealth Management, Digital Transactions for Fund Management reached 50% at Interfondo, and Ernie Uses reached 23% of total Interfondos customers.

Carlos Tori: Thank you, Luis Lpez.

Speaker Change #107: In terms of bringing in the flows.

Speaker Change #108: Turning to flows and strengthening the relationship with our clients and also on the payment side. There are a lot of synergies in terms of which systems, which networks, we use to transfer payment.

Michaela Casasa: Now, let's move on to show you some more details on the performance of our key businesses.

Carlos Tori: And exactly, the, let me go through reactive afters.

Payments on the <unk>.

Speaker Change #108: So we've.

Speaker Change #108: We've been going forward with that strategy, we've made some changes to.

Michaela Casasa: On slide 19, we continue to grow double digit in lower-risk products and segments such as several deductible loans and mortgage, with 24% and 15% year-over-year growth in disbursements respectively.

Carlos Tori: It was a program during COVID, which came with funding from the, from the government, a very, very low cost rates and long term. The experience has been good, obviously, both for our clients and the system as well as for the banks.

Carlos Story: So, we've been going forward with that strategy. We've made some more changes to.., to foster those synergies and working together. So we feel like the standalone financials of easy paying no longer reflect the actual results because there's different things going on. We will continue to show the operational numbers and transactions and things like that, but yeah, so that's the reason why we haven't shown the easy paying numbers. We haven't said that. We have seen, as Michela mentioned, a very strong increase in flows from easy pay to the bank and obviously strengthening relationships on our commercial clients and those flows. Do you continue to operate now?

Michaela Casasa: Also, we are growing heavily in commercial banking, with lower-risk, as Impulso Mipero is allowing us to grow in SMEs, where our value proposition has had nice traction multiplying in disbursements more than twofold when compared to last year. Important to mention that more than 90% of disbursements to SMEs have the guarantee of Impulso Mipero.

Carlos Tori: The loans were very small, so the operation and process of a dispersing and getting back guarantees from the war, etc, wasn't perfect, but it's worked well.

Speaker Change #108: To foster those synergies and working together, so we see like the stand alone.

Carlos Tori: And we still have a small outstanding, but that portfolio, basically, is being repaid. Most of it is at the end of this year and there's going to be very little left for first quarter.

Carlos Tori: to foster those synergies and working together. So we feel like the standalone financials of Easy Paying no longer reflect the actual results because there's different things going on. We will continue to show the operational numbers and transactions and things like that, but yeah, so that's the reason why we haven't shown the easy paying numbers. We haven't said that. We have seen, as Michela mentioned, a very strong increase in flows from Easy Pay to the bank and obviously strengthening relationships on our commercial clients and those flows.

Carlos Tori: Next year, of next year.

Speaker Change #108: Financial services <unk> no longer reflect the actual results because there's different things going on we will continue to show the operational numbers.

Carlos Tori: Impulso is a different program.

Those actions are.

Things like that but.

But.

Speaker Change #108: But yes. So that's the reason why we haven't shown the ACP numbers above that.

Speaker Change #108: Spaces.

Speaker Change #109: We haven't said that we have seen as Mr. <unk> mentioned, a very strong increase in flows from UCP to the bank.

Carlos Tori: It does have a guarantee for the government, depending on the size of the loan, those from like 60% guarantee to like 90%, but it comes with our funding and the show that the economics on those loans obviously reflect a lower risk, but also have more economic return.

Carlos Tory: We haven't said that we have seen, as Michela mentioned, a very strong increase in flows from ICP to the bank and obviously strengthening relationships on our commercial clients, and Dostro. Do you continue to operate? I was going to ask on EasyPay, do you continue to operate with your former partner with Scotiabank? No, no, actually, Carlos, that that a what Carlos mentioned, we acquired 100% of ECP, many months ago. So that's why we. No, no, no.

Michaela Casasa: Also, commercial banking portfolio has a whole new 15% on a year-over-year basis, and 12% from the previous quarter above the system, as we reached 10.2% market share in this segment.

Carlos Tori: So it's a different program that gives the clients a longer term fund, which is very helpful for them, and it gives the economy a boost, but it's a different program, I would say, better and more sustainable.

Speaker Change #110: Strengthening relationships on a corner for clients.

Speaker Change #110: Those flows.

Speaker Change #111: Thank you Glenn do you continue to operate.

Speaker Change #112: Sure No I was going to ask when is it right that you wanted to operate with your former partner with.

Michaela Casasa: Also, we wanted to highlight the growth of mid-sized company as we are now consistently ranked number three in this segment.

Carlos Tori: It's probably more comparable to similar programs that we see in other countries in the region, and it could be a program that stays along the next couple of years, so very different to Russia, both positive.

Carlos Story: I was going to ask on easy pay. Do you continue to operate with your former partner with? No, no, actually Carlos, that that what Carlos mentioned, we acquired 100% of easy pay many months ago. So that's why we. No, no, I understand that. So the question is whether that has meant that easy pay relationship with Scotia has stopped to become smaller? No, no, no, we continue to offer them some services. We offer services to many friends, institutions and yeah, the relationship with Scotia bank and great Scotia has remained stable. There are different things that go up and down. We give them several services, but they haven't decreased due to the change in ownership. Okay, that's great.

Carlos Tori: Do you continue to operate now? I was going to ask on Easy Pay. Do you continue to operate with your former partner? No, no, actually Carlos, that that what Carlos mentioned, we acquired 100% of Easy Pay many months ago. So that's why we. No, no, I understand that. So the question is whether that has meant that easy pay relationship with Scotia has stopped to become smaller? No, no, no, we continue to offer them some services. We offer services to many friends, institutions, and yeah, the relationship with Scotia Bank and Great Scotia has remained stable. There are different things that go up and down.

Carlos Tori: Is that a...

Carlos Story: Thank you so much. Okay, thank you.

Carlos Tori: Actually, I'm curious about your credit flows experience in these programs, and I understand the different types of companies.

Speaker Change #113: That's question one.

Carlos: No no actually Carlos.

Carlos: Doug.

Speaker Change #115: What I had mentioned we acquired 100% of ECB.

Speaker Change #116: Many months ago. So that's why we.

Speaker Change #117: I understand that.

Carlos Gomez: I understand. So the question is whether whether that that has meant that easy paced relationship with Scotia has has stopped or become a smaller. No, no, no.

Speaker Change #118: So the question is whether that has meant that <unk> relationship with Scotia has.

Speaker Change #118: Top topic I'm a smaller.

Speaker Change #119: We continue to offer them some services, we offer services to many institutions.

Carlos Tory: We continue to offer them some services. We offer services to many financial institutions. And yeah, the relationship with Scotiabank and Scotiabank has remained stable. There are different things that go up and down. We give them several services, but it hasn't hasn't decreased due to the changing of ownership. Okay, that's clear. Thank you so much.

Speaker Change #119: And yes the relationship with.

Speaker Change #119: Scotiabank and various closure has remained.

Speaker Change #119: Stable there are different things that go up and down we give them several services.

Speaker Change #119: It will happen.

Carlos Tori: We give them several services, but they haven't decreased due to the change in ownership. Okay, that's great.

Speaker Change #120: Decreased due to the change in ownership.

Speaker Change #120: Okay. That's great. Thank you so much.

Speaker Change #120: Okay. Thank you.

Unknown Executive: Thank you so much. Okay, thank you.

Speaker Change #120: The next question will come from Alonso Aramburu with BT team. Please go ahead.

Michaela Casasa: Finally, in line with the market trend, because we remain cautious in the loan book, there is still impact in cash loans, disbursements, decreasing 48% year-over-year, as well as on credit and debit card purchases.

Alonso Arambur: The next question will come from Alonzo Arrambaro with BTG. Please go ahead. Yes, hi, good morning. Thank you for the call. I want to talk about long growth and margin. And the relationship between the two, you mentioned 11 years to the second half of the year, and there's wondering how much of that is on the average size of higher yield, potentially as your own growth, accelerating the width of size, how much of that is in the front. That's why it's going to come down when the funding cost goes to decline. And related to that, when did you expect a pick-up? Thank you very much. Thank you. Great, thank you. Alonzo, hello, good morning.

Alonso Aramburu: Okay, thank you. The next question will come from Alonso Aramburu with VTG. Please go ahead. Yes. Hi, good morning.

Speaker Change #121: Yes, hi, good morning. Thank you Paul I wanted to talk about loan growth.

Carlos Tori: No, it was very low, very low credit flows, much lower than...

Alonso Aramburu: Thank you for the call. Yeah, I want to talk about low growth and margins. Andres Soto, Bruno Rio, Michela Ramat, Valentina Porto, Andres Soto, Bruno Rio, Andres Soto, Okay, Michela.

Carlos Tori: But that's after the guarantee, I would imagine, or before the guarantee.

Mark.

Speaker Change #122: On the relationship between the two you mentioned.

Speaker Change #123: That needs to improve.

Speaker Change #124: The second half of the year and just wondering how much of that is on the asset side, the higher yield potential near term loan growth.

<unk> generated from the retail side, how much of that is on the funding side Thats great companies become government funding cost continues to decline.

Speaker Change #124: Added to that when do you expect a pickup.

Speaker Change #124: <unk> Hello.

Alonso Arambur: Thank you very much. Thank you. Great, thank you.

Speaker Change #124: Yes.

Speaker Change #124: Okay.

Speaker Change #124: Yes.

Speaker Change #124: Hello, Good morning.

Michela Casasa: Hola, Alonso, hello, good morning. And let's start with LIM. And what we are seeing for the second half of the year, I mean, it is tough, okay, because the dynamics, because of the portfolio mix, no, the yield is, It's still slightly going down, but there are a number of things that should help a little bit of yield on loan. But we believe most of the recovery should come from the cost of funds.

Speaker Change #124: Let's start with leading in.

Alonso Arambur: Alonzo, hello, good morning. And let's start with Lim. What we are seeing for the second half of the year, I mean, it's tough because the dynamics, because of the portfolio mix, no, the yield is still slightly going down. But there are a number of things that should help a little bit yield alone, that we believe most of the recovery should come from the cost of funds. Okay? But the thing that could help yield alone is that we are expecting the decrease in the consumer loan portfolio, I mean, to start stabilizing, no? So, not that much decrease.

Alonso Arambur: And let's start with Lim. What we are seeing for the second half of the year, I mean, it's tough, because the dynamics, because of the portfolio mix, no, the yield is still slightly going down. But there are a number of things that should help a little bit yield alone, that we believe most of the recovery should come from the cost of funds. Okay? But the thing that could help yield alone is that we are expecting the decrease in the consumer loan portfolio, I mean, to start stabilizing, no?

What we are seeing for the second half of the year.

Michaela Casasa: However, we see a recover of this last one of more than 20% during July.

Carlos Tori: Both, actually, but after guarantee, definitely, no. I mean, after guarantee, much lower than the rest of our portfolio, and before guarantee, it's similar to our portfolio.

Alonso Arambur: So not that much decrease. And the second thing is that if you push them if they do, that's not a renewal and we don't have more funds to do that, we will start replacing and growing with some loans which have a little bit higher yield. Okay? So that should help. But for sure, for what we've seen in the first half of the year, and because of what has already taken place in our funding base and our cost of funds, we expect that trend to continue and to be the main positive contributor if you want to need.

Speaker Change #124: It is tough okay, because the dynamics.

Speaker Change #124: Most of the portfolio mix now the yield is still slightly going down, but there are a number of things that should help a little bit.

Michaela Casasa: Unlike to any, we wanted to update you on the development from the Impulso Mipero.

Carlos Tori: Thank you.

Speaker Change #125: But we believe most of the recoveries should come from the cost of funds, okay, but the thing that good sales yield on loans is that we are expecting the decrease in the consumer loan portfolio I mean to start stabilizing and also not that much decrease and the second thing.

Michela Casasa: Okay, but the thing that could help yield on loans is that we are expecting the decrease in the consumer loan portfolio. I mean, to start stabilizing now, so not that much decreased. Okay. If Impulso Mi Perú does not renew and we don't have more funds to do that, we will start replacing and growing with some loans which have a little bit higher yield. OK, so that should help.

Michaela Casasa: As mentioned before, this program does not provide funding, but gives from 50 to 98% guarantee levels to credits given to SMEs and mid-sized companies. And the allocation of the guarantee is conducted through actions where the bidding variable is the interest rate offered to clients.

Michaela Casasa: During the second quarter, we have this dose more than 1,400 million solids.

Carlos Tori: And also, on the payment side, there are a lot of synergies in terms of which systems, and which networks we use to transfer payments and the funds.

Carlos Tori: So, we've been going forward with that strategy.

Speaker Change #125: Is that.

Carlos Tori: We've made some more changes to.., to foster those synergies and working together.

Luis Felipe Castellanos: And the second thing is that if you push them, if they do, that's not a renewal and we don't have more funds to do that. We will start replacing and growing with some loans which have a little bit higher yield. Okay? So that should help. But for sure, for what we've seen in the first half of the year, and because of what has already taken place in our funding base and our cost of funds, we expect that trend to continue and to be the main positive contributor, if you want to need. Now, on the growth of credit cuts and personal loans, actually, that is also a little bit tricky because up until the official figures that we've seen at system level of June, those two products have continued to shrink and we're talking about all the banks, no?

Speaker Change #125: If <unk> does not.

Speaker Change #125: <unk> renew and we don't have more funds to do that we will start replacing and growing with some loans, which have a little bit higher yield.

Speaker Change #125: That should help but for sure for what we've seen in the first half of the year and what because of what has already taken place in our funding base and our cost of funds, we expect that trend to continue and to be the main positive contributor if you want.

Carlos Tori: So we feel like the standalone financials of easy paying no longer reflect the actual results because there's different things going on.

Carlos Tori: We will continue to show the operational numbers and transactions and things like that, but yeah, so that's the reason why we haven't shown the easy paying numbers.

Michela Casasa: But for sure, for what we've seen in the first half of the year, because of what has already taken place in our funding base and our cost of funds, we expect that trend to continue and to be the main positive contributor if you want to need. Now, on the growth of credit cards and personal loans, actually, that is also a little bit tricky because up until the official figures that we've seen at system level of June, those two products have continued to shrink. And we're talking about, All the banks. We're all shrinking.

Carlos Tori: We haven't said that.

Speaker Change #125: Now on the growth of credit cards and personal loans.

Michaela Casasa: Overall, almost 2 billion solids have been this dose, of which almost 65% have gone to SMEs and are remaining to mid-sized companies.

Carlos Tori: We have seen, as Michela mentioned, a very strong increase in flows from easy pay to the bank and obviously strengthening relationships on our commercial clients and those flows.

Alonso Arambur: Now, on the growth of credit cuts and personal loans, actually, that is also a little bit tricky because up until the official figures that we've seen at system level of June, those two products have continued to shrink and we're talking about all the banks, no? We are all shrinking. And this is mainly due to a number of reasons, for sure, the liquidity, so the seven funds and the private pension funds are helping people to repay their debts.

Actually that is also a little bit tricky because up until the official figures that we've seen at system level of June <unk>.

Speaker Change #125: Those two products have continued to shrink and we're talking about.

<unk> not.

Speaker Change #126: We're all shrinking.

Speaker Change #127: And this is mainly due to a number of reasons not for sure the liquidity. So the sovereign funds and the private pension funds are making people are helping people to repay the debt. That's good on provisions is not good for growth.

Carlos Tori: Do you continue to operate now?

Luis Felipe Castellanos: We are all shrinking. And this is mainly due to a number of reasons, for sure, the liquidity. So the seven funds and the private pension funds are helping people to repay their debts. That's good on provisions. It's not good for growth. That the second thing is also that we have not yet a strong recovery of employment and demand, like a sustainable one, that would push trends to start taking new debts. Okay? We have seen a recovery, and in July, it has been very important in credit and debit cuts turnover, so the usage of credit and debit cuts, so that's positive news because that is the base then for financing.

Carlos Tori: I was going to ask on easy pay.

Michela Casasa: And this is mainly due to a number of reasons. Not for sure the liquidity. So the severance funds and the private pension funds are helping people to repay their debts. That's good on provisions. It's not good for growth.

Carlos Tori: Do you continue to operate with your former partner with?

Alonso Arambur: That's good on provisions. It's not good for growth. That the second thing is also that we have not yet a strong recovery of employment and demand, like a sustainable one, that would push trends to start taking new debts. Okay? We have seen a recovery and in July, it has been very important in credit and debit cuts turnover, so the usage of credit and debit cuts, so that's positive news because that is the base then for financing.

Speaker Change #127: The second thing is also that we have not.

Carlos Tori: No, no, actually Carlos, that that what Carlos mentioned, we acquired 100% of easy pay many months ago.

Michela Casasa: But the second thing is also that we have not seen yet a strong recovery of employment and of demand like a sustainable one that would push clients to start taking new debts. Okay. We have seen a recovery and in July it has been very important in credit and debit card turnover. So the usage of credit and debit cards. So that's positive news because that is the base then for financing. But I guess July will also be a month of decrease at system level because you have besides what we have seen in June also the extra salary. For dependent employees, not so.

Carlos Tori: So that's why we.

Speaker Change #127: Yet a strong recovery of employment or end of demand like a sustainable one that would push price to start taking.

Speaker Change #128: New debt, Okay. We have seen a recovery in in July has been very important in in credit and debit card turnover. So the usage of credit and debit cards. So that's positive news because that is the base then for financing, but I guess July will also be.

Carlos Tori: No, no, I understand that.

Carlos Tori: So the question is whether that has meant that easy pay relationship with Scotia has stopped to become smaller?

Carlos Tori: No, no, no, we continue to offer them some services.

Alonso Arambur: But I guess July will also be a month of decrease at system level because you have, besides what we have seen in June, also the extra salary, for dependent employees, not so. So I guess it's going to be a decrease in what we are expecting in our estimates is just a stabilization and not yet a growth up until year end. Just to compliment that Alonso or just summarize, we have been issuing more cards in the last couple of months.

Luis Felipe Castellanos: But I guess July will also be a month of decrease at system level because you have, besides what we have seen in June, also the extra salary. For dependent employees, not so.

Speaker Change #129: Our months of decrease of system level, because you have besides what we have seen in June also the extra salary.

Speaker Change #130: Four independent employees and also so I guess, it's going to be a decrease in.

Carlos Tori: We offer services to many friends, institutions and yeah, the relationship with Scotia bank and great Scotia has remained stable.

Michela Casasa: So I guess it's going to be a decrease in in what we are expecting in our estimate is just a stabilization and not yet, growth up until year end. Just to complement that, Alonso, or just summarize in, We have been issuing more cards in the last couple of months. So we're growing our portfolio, and the usage has been good. So activation is up and clients are taking the value proposition. But as Michela mentioned, there has been low use of financing on those cards.

Carlos Tori: There are different things that go up and down.

Luis Felipe Castellanos: So I guess it's going to be a decrease in what we are expecting in our estimates, is just a stabilization and not yet a growth up until year end.

Speaker Change #131: And what we are expecting an estimate is just a stabilization or not yet.

Speaker Change #131: Our growth up into year end.

Speaker Change #131: Just to complement that and also.

Michaela Casasa: Risk-adjusted profitability has improved, and this increase in volumes and clients re-resents also an opportunity to further cross-sell and finance financing as was the case with Reativa.

Carlos Tori: We give them several services, but they haven't decreased due to the change in ownership.

Luis Felipe Castellanos: Just to compliment that Alonso or just summarize, we have been issuing more cards in the last couple of months. So growing our portfolio. And the usage has been good. So activation is up, and clients are taking the value proposition. But if Michela mentioned, there have been low use of financing on those cards. One part of that has to do with the segments that we're going at, which also is a little bit mentioned. We're going a little bit lower, lower risk. But also there's been a lot of liquidity in the consumer segment over the last couple of months.

Speaker Change #131: Or just summarize.

Speaker Change #131: We have been issuing more cards in the last couple of months. So we're growing our portfolio.

Michaela Casasa: On flight 21, although risk-adjusted limit is still low, we observe an important improvement of 50 basis points aligned, not only with the shift of the loan book mix, but also with the reduction of cost of risk in both retail and commercial banking, given the growth of Impulso Mipero and the liquidity events mentioned before. Additionally, there is still an impact on yields due to the lower rates driven by Impulso Mipero and with the shift of the loan book mix.

Carlos Tori: Okay, that's great.

Alonso Arambur: So growing our portfolio. And the usage has been good. So activation is up and clients are taking the value proposition. But if Michela mentioned, there have been low use of financing on those cards. One part of that has to do with the segments that we're going at, which also is a little bit mentioned, we're going a little bit lower, lower risk. But also there's been a lot of liquidity in the consumer segment over the last couple of months.

Speaker Change #131: The usage has been good so activation.

Michaela Casasa: Antique loans, which includes credit cards and personal loans, decrease to 19% here over here.

Carlos Tori: Thank you so much.

Speaker Change #131: Sure.

Michaela Casasa: In that line, we see lower yield on loans of 20 basis points reaching 10.6% and the minimum reduced by 10 basis.

Carlos Tori: Okay, thank you.

Speaker Change #132: Clients are taking the value proposition, but as michela mentioned, there has been low use of financing on those cuts.

Michaela Casasa: Furthermore, this quarter brings positive news as the cost of funds consolidates change in trend, decreasing 40 basis points to 3.6% with an accumulated reduction of 80 basis points from the peak of the fourth quarter last year.

Alonso Arambur: The next question will come from Alonzo Arrambaro with BTG.

Speaker Change #132: One part of that pass through.

Michaela Casasa: This is why when rates increase our cost of funds was hit, but now that we see lower market rates we benefit more than others. In that sense, this improvement is attributable not only to lower market rates, as the short duration of interest bearing deposits allows for faster reprising, especially in local currency deposits.

Alonso Arambur: Please go ahead.

Carlos Tory: One part of that has to do with the segments that we're going at, which also as Felipe mentioned, we're going a little bit lower risk. But also, there's been a lot of liquidity in the consumer segment over the last couple of months. First, due to CTS, you know, the CTS. The other is the funds from the AFPs, which have been, we're in the middle of that, or probably around 60% of the dispersions have been done. Ratificaciones in July is always a very liquid month.

Speaker Change #133: The segments that we're going up which certainly Philippe mentioned, we're doing a little bit lower lower risk.

Speaker Change #134: But also there's been a lot of liquidity in the consumer segment over the last couple of months first due to Ccs.

Michaela Casasa: But also to a better funding mix as the proportion of time deposits over retail deposits is decreasing given a proactive management of efficient funding. Consequently, the cost of deposits has decreased 20 basis points in the quarter and 60 basis points year to date.

Alonso Arambur: Yes, hi, good morning.

Michaela Casasa: More positive news is that the share of deposits in total spending remains stable and the retail deposit market share continues to increase highlighting growth from saving deposits throughout the year.

Alonso Arambur: Thank you for the call.

Alonso Arambur: First, due to CTH, you know, the safe access. The other is the funds from the AFPs, which have been wearing the middle of that or probably around 60% of the versions have been done. Raptification is in July is always a very liquid month. And that will continue for a couple of weeks. So it will be interesting to see what happens after that. We keep constable with the risk decisions that we have made. But we would expect a little bit more financing on those new cards over the next couple of months. Okay. Thank you.

Luis Felipe Castellanos: First, due to CTH, you know, the safe access. The other is the funds from the AFPs, which have been wearing the middle of that or probably around 60% of the versions have been done. Raptification is in July. is always a very liquid month. And that will continue for a couple of weeks. So it will be interesting to see what happens after that. We keep constable with the risk decisions that we have made. But we would expect a little bit more financing on those new cards over the next couple of months. Okay.

Speaker Change #134: So basic.

Speaker Change #135: The other is the funds from the Asp's, which have been.

Speaker Change #135: We're in the middle of that.

Speaker Change #136: 60% of those business have been done with FTC Casio mentioned in July is always a very big.

Speaker Change #135: Liquid mud.

Speaker Change #135: And that will continue.

Speaker Change #135: Or a couple of weeks so it will be interesting to see what happens after that.

Speaker Change #135: He is console with a recent decisions we have made.

Speaker Change #137: But we would expect a little bit more financing on those new cards overall.

Speaker Change #137: Thanks.

Speaker Change #137: Months.

Speaker Change #137: Great. Thank you.

Speaker Change #137: Dennis.

Carlos Tory: And that will continue for a couple of weeks. So it will be interesting to see what happens after that. We feel comfortable with the risk decisions that we have made, but we would expect a little bit more financing on those new cards over the next couple of months. Great, thank you Nicolas and Carlos. The next question will come from Andres Soto with Santander. Please go ahead.

Andres Soto: Thank you. The next question will come from Andre Soto. What's the tender? Please go ahead.

Speaker Change #138: The next question will come from Andres Soto with Santander. Please go ahead.

Luis Lpez: The next question will come from Andre Soto, what's the tender? Please go ahead. Good morning, Dola. Thank you for the presentation. My question is regarding the long-term strategy and how do you see your long book over the medium term? Historically, you know, interbank was have an outside exposure to consumer lending after we have seen in this great cycle has anything changed in that sense. We got new rapid diet for continue having this type of exposure and also considering that you have other initiatives targeting SMEs.

Speaker Change #139: Good morning to all and thank you for the presentation. My question is regarding.

Andres Soto: Good morning, Dola. Thank you for the presentation. My question is regarding the long-term strategy and how do you see your long book over the medium term? Historically, you know, interbank was have an outside exposure to consumer lending after we have seen in this great cycle has anything changed in that sense. We got new rapid diet for continue having this type of exposure and also considering that you have other initiatives targeting SMEs. Can we expect IFS after this be have a different composition or you think that all those factors are rather sickly gone. And once the economy recovers, we should see a re-shuffling of your long book towards the more closer to historical levels.

Andres Soto: Good morning to all and thank you for the presentation. My question is regarding the long term strategy and how do you see your long book over the medium term? Historically, you know, Interbank was have a, outside exposure to consumer lending after what we have seen in this great cycle.

Michaela Casasa: Finally, along to the deposit ratio of 99% is in line with the industry average.

Alonso Arambur: I want to talk about long growth and margin.

Luis Lpez: Can we expect IFS after this be have a different composition or you think that all those factors are rather sickly gone. And once the economy recovers, we we should see a re-shuffling or your long book towards the more closer to historical levels. Yeah, hi. And the same thing, thank you very much for your question. And we've actually always mentioned that we like to balance approach or portfolio like a 50% commercial 50% retail.

Speaker Change #140: The long term ascribed to EMA, how do you see your loan book over the medium term.

Speaker Change #139: Historically.

Speaker Change #141: And they are buying.

Michaela Casasa: We have also been working to generate further synergies with ECP as we encourage the growth of our payment ecosystem focusing on increasing transactional volumes, offering merchants value added services, continued to pilot low risk loans to merchants and use ECP as a distribution network for interbank products as well as a source to increase float. The results are evident as we follow four key figures, 27% yearly increase in ECP flow coming to interbank accounts and 40% increase in float from merchants. Moreover, there is a 2.2 times yearly increase in transactional volumes and 17% growth in float from micro merchants thanks to ECP yet.

Alonso Arambur: And the relationship between the two, you mentioned 11 years to the second half of the year, and there's wondering how much of that is on the average size of higher yield, potentially as your own growth, accelerating the width of size, how much of that is in the front.

Speaker Change #141: However.

Speaker Change #142: Outside exposure to consumer lending.

Speaker Change #142: After we have seen in these great HEICO has anything changed in the plans.

Speaker Change #142: Regarding your appetite for four continue having this type of exposure.

Alonso Arambur: That's why it's going to come down when the funding cost goes to decline.

Speaker Change #142: And also considering that you have all of our initiatives.

Speaker Change #142: Targeting Smes.

Speaker Change #143: Okay can we expect a higher face after these be have a different competition or you think that all of those factors are rather seek like Atlanta once the economy recovers we shall see.

Alonso Arambur: And related to that, when did you expect a pick-up?

Speaker Change #143: Reshuffling or your loan book towards more closer to historical levels.

Andrea: Yes, Hi, Andrea.

Michaela Casasa: Now moving to insurance on slide 24, premiums were up 8% in the quarter and around 25% year over year as market share of annuities remain at 29%.

Alonso Arambur: Thank you very much.

Luis Felipe Castellanos: Yeah, hi. And the same thing. Thank you very much for your question. And we've actually always mentioned that we like to balance approach or portfolio like a 50% commercial, 50% retail. Obviously, some opportunities came in the last year that the balance that a little bit more on consumer, but that the view doesn't change. We want to we want to go on a balance portfolio strategy. I think that's what has done IFS successful in the past, and that probably will be in the future. Obviously, certain conditions of the country are changing; probably certain segments will be growing more than others, and that's something that we need to review. But as of now, it doesn't change.

Speaker Change #145: Thanks very much for your.

Andres Soto: Has anything changed in that sense regarding your appetite for continue having this type of exposure and also considering that you have other initiatives targeting SMEs. Can we expect IFS after this have a different composition or you think that all those factors are rather cyclical and once the economy recovers we should see a reshuffling or your long book towards the more closer to historical levels. Yeah, hi Andres, thanks very much for your question.

Alonso Arambur: Thank you.

Speaker Change #145: Question.

Speaker Change #146: We've actually.

Speaker Change #146: Always.

Luis Lpez: Obviously some opportunities came in the in the last year that the balance that a little bit more on consumer but that the view doesn't change. We want to we want to go on a balance portfolio strategy. I think that's what has done IFS successful in the past and that probably will be in the future. Obviously, certain conditions of the country are changing, probably certain segments will be growing more than others, and that's something that we need to review, but as of now, it doesn't change.

Luis Felipe Castellanos: We've actually always mentioned that we like a balanced approach to our portfolio, like a 50% commercial, 50% retail. Obviously, some opportunities came in the last year that de-balanced that a little bit more on consumer, but the view doesn't change. We want to go on a balanced portfolio strategy. I think that's what has done IFS successful in the past, and that probably will be in the future. Obviously, certain conditions of the country are changing. Probably certain segments will be growing more than others. And that's.

Speaker Change #147: <unk> mentioned that we like a balanced approach our portfolio like a 50%.

Speaker Change #148: Commercial 50%.

Speaker Change #148: Retail.

Speaker Change #148: Obviously, you have some opportunities came in in the last year got it.

Speaker Change #149: D balanced out a little bit more on consumer.

Speaker Change #150: Our view doesn't change we went.

We want to go.

Speaker Change #150: On our balance portfolio strategy, I think thats, what <unk> done.

Speaker Change #150: Successfully in the past and that probably will be in the future.

Obviously certain conditions of the country are changing.

Speaker Change #150: Certain segments will be growing more.

Speaker Change #150: Others.

Speaker Change #150: That's something that we need to review.

Luis Felipe Castellanos: That's something that we need to review, but as of now, it doesn't change. We are going to go over our big new five-year plan, strategy review, and strategic planning process starting actually these days, and it will go for a couple more months. So, we're going to debate that. Obviously, Carlos' story and his new role brings new ideas that will be welcomed and discussed, and when we finalize that process, probably we'll be able to share. But so far, we believe Peru continues to be a country of opportunities.

Speaker Change #150: And by as of now.

Speaker Change #150: It doesn't change we are going to go over our big.

Alonso Arambur: Great, thank you.

Luis Lpez: We are going to go over our big new five-year plan strategy review and strategic planning process starting actually this day. And it will go for a couple more months, so we're going to debate that obviously Carlos story in his new role brings new ideas that will be welcome and discussed, and when we finalize that process probably will be able to share, but so far, we believe that it will continue to be a country of opportunities.

Luis Felipe Castellanos: We are going to go over our big new five-year plan strategy review and strategic planning process starting actually this day. And it will go for a couple more months, so we're going to debate that. Obviously, Carlos' story in his new role brings new ideas that will be welcome and discussed, and when we finalize that process, probably we will be able to share. But so far, we believe that it will continue to be a country of opportunities. The violence approach is what we have, and that's what we will enter gender in the following months as we continue to deploy our strategy.

Speaker Change #150: The new five year plan.

Speaker Change #150: A strategy review.

Speaker Change #150: Our strategic planning process, starting actually these days.

Speaker Change #150: And it will go for a couple of more months. So we're going to debate that obviously Carlos study excuse me Rob brings new ideas that will be will come and discuss.

Alonso Arambur: Alonzo, hello, good morning.

Speaker Change #151: When we finalize that process, probably will be able to share, but so far.

Speaker Change #152: We believe <unk> continues to be a country of opportunities. Good balanced approach is what we have and thats, what we will.

Alonso Arambur: And let's start with Lim.

Luis Lpez: The violence approach is what we have, and that's what we will enter gender in the following months as we continue to deploy our strategy. I think growth in core segments, digitalization, and vast use of analytics is what we will continue to stream. Thank you for Luis Lippe.

Luis Felipe Castellanos: The balanced approach is what we have, and that's what we will entertain during the following months as we continue to deploy our strategy. I think growth in core segments, digitalization, and vast use of analytics is what continues. Thank you Luis Lpez, and from that perspective, you previously mentioned that when you look at the long term, we should expect IFS to have a different composition in terms of NIM and causal risk. Can you remind us what do you see as sustainable levels for those variables to target your 18% ROE for the consolidated entity?

Speaker Change #153: Entered into during the following months as we continue to deploy our strategy I think.

Speaker Change #152: No.

Luis Felipe Castellanos: I think growth in core segments, digitalization, and vast use of analytics is what we will continue to stream.

Speaker Change #154: In core segments, digitalization and best use of analytics is going to continue.

Speaker Change #152: Sure.

Speaker Change #155: Thank you Alex.

Speaker Change #155: From our perspective, you previously mentioned that when you look at the long term.

Michaela Kasasa: Thank you for Luis Lippe. And from the perspective, you previously mentioned that when you look the long term, we should expect IFS to have a different composition in terms of name and cost of risk. Can you remind us what do you see a sustainable level for those variables to target your 18% ROE for the consolidated entity? Yeah, I can remind you of the 18% ROE. I don't have the details on the; I don't know if we have long-term numbers for that, but 18% should be your driver unless Mikayla, I don't know if you can compliment her.

Michaela Kasasa: And from the perspective, you previously mentioned that when you look the long term, we should expect IFS to have a different composition in terms of name and cost of risk. Can you remind us what do you see a sustainable level for those variables to target your 18% ROE for the consolidated entity? Yeah, I can remind you of the 18% ROE. I don't have the details on the, I don't know if we have long-term numbers for that, but 18% should be your driver unless Mikayla, I don't know if you can compliment her.

Speaker Change #155: We should expect.

Speaker Change #155: Phase two half.

Speaker Change #156: We've had competition in terms of NIM cost of risk can you remind us what do you see as sustainable levels for both variables.

Michaela Casasa: Individual lives continues to grow nicely with an 18% increase year over year.

Speaker Change #155: Target.

Speaker Change #155: 18% ROE for the consolidated entity.

Speaker Change #155: Yes.

Speaker Change #157: I can remind you of the 18% Roe.

Michaela Casasa: Private annuities are the fastest growing product having more than doubled in the last year and increasing their share of premiums to 25%. This growth is driven by some clients switching from time deposits as banks now offer lower rates.

Luis Felipe Castellanos: Yeah, I can remind you of the 18% ROE. I don't have the details on the other. I don't know, Michela, if we have long-term numbers for that, but 18% should be your driver, Andres. Michela, I don't know if you can complement that.

Speaker Change #158: Don't have the details on your iron ore. We did have we have long term numbers for that by 18, Brazil should be your driver.

Michaela Casasa: On the other hand, retail insurance remains stable with credit, life and cash protection experiencing good growth.

Speaker Change #158: Gayla.

Speaker Change #158: If you can complement.

Speaker Change #158: Maybe maybe the only thing Andres and I will add is that I mean.

Michela Casasa: Yeah, no, maybe the only thing, Andres, that I will add is that, I mean, cost of risk should be, I mean, closer to free, okay? Most is going to be above 3%, okay, because of the portfolio mix and the things that we are thinking of growing and then in the different maybe risk profile, okay? But, I mean, last number we have reported is still 4. Now, this number should go back and closer to 3%, you know, or slightly above 3%, also in the in the midterm. Expectation on when causal race will normalize to this level.

Michaela Kasasa: Yeah, now maybe the only thing that I will add is that cost of risk should be closer to three. Most likely it's going to be above 3%, because of the portfolio mix and the things that we are thinking of growing in the different risk profile. Last number we have reported is still four. No, this number should go back and closer to three percent, or slightly above 3%. Also in the meter. Expectation on when cost of risk was normalized to this level.

Speaker Change #159: Cost of risk should be closer to three okay. Most likely is going to be above 3%, okay because of the portfolio mix and the things that we are thinking of growing and ended in the different may be at risk for high okay.

Alonso Arambur: What we are seeing for the second half of the year, I mean, it's tough, because the dynamics, because of the portfolio mix, no, the yield is still slightly going down.

Speaker Change #159: Last number we have reported is still for now this number.

Alonso Arambur: But there are a number of things that should help a little bit yield alone, that we believe most of the recovery should come from the cost of funds.

Speaker Change #159: <unk> should go.

Alonso Arambur: Okay?

Speaker Change #160: Back in closer to 3% or slightly above 5%.

Speaker Change #160: Also in the in the midterm.

Alonso Arambur: But the thing that could help yield alone is that we are expecting the decrease in the consumer loan portfolio, I mean, to start stabilizing, no?

Speaker Change #160: Expectation on Wayne.

Speaker Change #161: Cost of risk will normalize to this level.

Alonso Arambur: So not that much decrease.

Speaker Change #162: Actually you have seen already not the movement from four seven to four.

Alonso Arambur: And the second thing is that if you push them if they do, that's not a renewal and we don't have more funds to do that, we will start replacing and growing with some loans which have a little bit higher yield.

Michaela Kasasa: Actually, you have seen already, the movement from 4.7 to 4. We expect to end the year in, I mean, mid three, so close to 3.5. So we take quarter over quarter to continue the decline. That's very helpful. Thank you both. Thank you.

Michela Casasa: Actually, you have seen already know the movement for from 4.7 to 4, we expect to end the year in, I mean, Meet meet three so close to 3.5 now. So we take quarter over quarter to continue the decline, That was very helpful. Thank you both. Thank you, Andres. At this time we will take any webcast questions. I would now like to turn the call over to Mr. Ivan Peel from Inspire Group. Please go ahead sir.

Speaker Change #162: We expect to end the year in I mean.

Alonso Arambur: Okay?

Speaker Change #163: Mid mid three so close to three five now so we expect quarter over quarter to continue the decline.

Alonso Arambur: So that should help.

Michaela Kasasa: So we take quarter over quarter to continue the decline.

Speaker Change #163: That's very helpful. Thank you Bob.

Unknown Executive: That's very helpful. Thank you both. Thank you.

Speaker Change #164: Thank you Andreas.

Speaker Change #164: At this time, we will take any webcast questions I would now like to turn the call over to Mr. Ivan Pill from inspire group. Please go ahead Sir.

Ivan Peele: At this time, we will take any webcast questions. I would now like to turn the call over to Mr. Ivan Peele from Inspire Group. Please go ahead, sir. Thank you, operator. At this time, there are no webcast questions, so I'd like to turn the floor back to Ms. Kasasa for closing remarks.

Ivan Peele: At this time, we will take any webcast questions.

Ivan Peel: Thank you operator at this time. There are no webcast questions, so I'd like to turn the floor back to miss kasasa for closing remarks, Okay, thank you very much everybody for joining our call and we will see each other again in August for our third quarter. Thank you. Bye bye. This concludes today's conference call. This concludes today's conference call. You may now disconnect.

Michaela Casasa: On slide 25, regarding the investment portfolio, the return on the investment portfolio increased 40 basis points compared to the previous year, mainly due to higher interest within from existing income investments and an increasing rental income.

Alonso Arambur: But for sure, for what we've seen in the first half of the year, and because of what has already taken place in our funding base and our cost of funds, we expect that trend to continue and to be the main positive contributor if you want to need.

Michaela Kasasa: I would now like to turn the call over to Mr. Ivan Peele from Inspire Group. Please go ahead, sir. Thank you, operator.

Ivan Pill: Thank you operator at this time there are no webcast questions. So I'd like to turn the floor back to Ms. Casassa for closing remarks.

Michaela Casasa: And finally, on wealth management, we continue to see growth in assets under management with a yearly growth of 15% and 5.5% on a quarterly basis reaching the historically maximum of $6.8 billion. On the back of that there is an important recovery of the income on a quarterly and annual basis reaching 42 million solace which represents a 22% growth year over year and an 11% growth from their previous quarter.

Alonso Arambur: We are all shrinking.

Michaela Casasa: On the environmental front, we've completed an initial climate risk assessment at Interbank providing a robust foundation for future climate related strategies.

Alonso Arambur: And this is mainly due to a number of reasons, for sure, the liquidity, so the seven funds and the private pension funds are helping people to repay their debts.

Michaela Casasa: Our sustainable loan portfolio has expanded to more than 200 million dollars, reflecting our commitment to green financing.

Michaela Casasa: To defend a strategic partnership with NLX, we further enhance our ability to identify and offer green loan products.

Alonso Arambur: That's good on provisions.

Michaela Kasasa: At this time, there are no webcast questions, so I'd like to turn the floor back to Ms. Kasasa for closing remarks. Okay, thank you very much everybody for joining our call, and we really will see each other again in August for our third quarter results. Thank you, bye bye.

MS. Casassa: Okay. Thank you very much everybody for joining our call and really you'll see each other again in August for our third quarter results. Thank you bye bye.

Michaela Casasa: In the social front, we keep strengthening our digital solutions aiming to reach more Peruvian.

Alonso Arambur: It's not good for growth.

Michaela Kasasa: Okay, thank you very much everybody for joining our call and we really will see each other again in August for our third quarter results. Thank you, bye bye.

Michaela Casasa: Regarding our education, our financial education platform, Appendemas, we have already reached over a million Peruvians.

Speaker Change #167: Bye This concludes today's conference call.

Michaela Casasa: In addition, our dedication to talent management has also been recognized by Merkel in great place to work.

Alonso Arambur: That the second thing is also that we have not yet a strong recovery of employment and demand, like a sustainable one, that would push trends to start taking new debts.

Unknown Executive: This concludes today's conference call.

Operator: This concludes today's conference call. You may now disconnect.

Speaker Change #168: This concludes today's conference call you may now disconnect.

Michaela Casasa: In the governance front, to foster a strong sustainability culture, we have implemented our first sustainability supply chain forum, reaching 100 key providers.

Alonso Arambur: Okay?

Unknown Executive: You may now disconnect.

Michaela Casasa: Second, our employees have been actively engaged in ESG material topics through five sustainability talks, and we supported local entrepreneurs by hosting two sustainability first at Intelligo Group.

Alonso Arambur: We have seen a recovery and in July, it has been very important in credit and debit cuts turnover, so the usage of credit and debit cuts, so that's positive news because that is the base then for financing.

Michaela Casasa: Finally, as Luis Felipe produced mentioned, EuroMani has also awarded Interbank for Peru's best bank for showing strong financial performance across key metrics such as business development, increased digital solutions and corporate governance.

Alonso Arambur: But I guess July will also be a month of decrease at system level because you have, besides what we have seen in June, also the extra salary, for dependent employees, not so.

Michaela Casasa: Second, Peru's best digital bank for our focus on digital innovation, and third, Peru's best bank for corporate responsibility, underscoring the positive impact of our initiatives on society and the environment.

Michaela Casasa: On slide 29, let me give you an update on our operating results for the second quarter of 2024 and the comparison to guidance.

Michaela Casasa: We continue to present sound capital levels with total capital ratio of 15% and correct with the tier 1 ratio of 11.2% both above our guidance.

Q2 2024 Intercorp Financial Services Inc Earnings Call

Request a DemoDemo

IFS

Intercorp Financial Services

Earnings