Anand Bhavnani

Anand Bhavnani asked about the key risks Intercorp Financial Services is monitoring during the election year. In a follow-up, he inquired if the boom in copper and lower oil prices could lead to upside risk for GDP growth and downside potential for inflation, acting as tailwinds for the company's performance.

Answer

Luis Felipe Castellanos (CEO, Intercorp Financial Services) identified two main political risks: the rise of non-market-friendly candidates delaying investments during the election period, and the potential for a radical candidate to be elected, changing economic rules. He noted that while the probability is not high, past volatility exists, but Peru's economic institutions are solid. Regarding commodities, he confirmed that strong copper prices and lower oil costs are positive factors that could lead to stronger GDP growth, continued currency strength, controlled inflation, and improved productivity, creating an upside risk that IFS is prepared to leverage.

Anand Bhavnani inquired about the key risks to monitor during the election year, specifically regarding political instability and market-unfriendly candidates. He also asked if the boom in copper and lower oil prices could lead to upside risk for GDP growth and downside potential for inflation, acting as a tailwind for the company.

Answer

Luis Felipe Castellanos, CEO of Intercorp Financial Services, identified political risk from market-unfriendly candidates and potential delays in investment decisions as key concerns during the election year. He acknowledged that strong commodity prices (copper) and lower oil prices are positive factors that could lead to stronger GDP growth, continued currency strength, and controlled inflation, providing a tailwind for the Peruvian economy and the financial system, which IFS is prepared to leverage.