Slide 1: Earnings Conference Call Fourth Quarter 2019
Earnings Conference Call Fourth Quarter 2019
Slide 2: Peru's political environment has changed little since the last Conference Call
Peru’s political environment has changed little since the last Conference Call I) Following the dissolution of Congress by President Vizcarra on September 30, 2019, Congressional elections were held on January 26, 2020: Acción Popular 9 • A fragmented Congress: 9 political 9 25 Alianza para el Progr
Slide 3: Peru remains one of the most dynamic economies of the region
Peru remains one of the most dynamic economies of the region III) Economic activity decelerated during 4Q19: Chart 2: LatAm: 2020 GDP growth forecast – consensus analysts (% change YoY) (2) ▪ Our estimates suggest GDP expanded below 2% y/y in 4Q19. With this result GDP expanded 2.0% in 2019. The lac
Slide 4: Overview - Credicorp's Lines of Business (LoBs)
Overview - Credicorp’s Lines of Business (LoBs) Universal Banking Microfinance Stand-alone Bolivia FY2019 Contribution(1) 74.2% 1.8% FY2019 Contribution(1) 9.2% 0.1% FY 2018 20.3% 11.8% FY 2018 25.9% 9.1% ROAE ROAE FY 2019 20.4% 11.0% FY 2019 20.1% 8.9% BCP Stand-alone: + Growth driven by Retail Ban
Slide 5: Quarterly and Full Year 2019 Highlights
Quarterly and Full Year 2019 Highlights Profitability Loan Portfolio Quarterly FY 2019 Quarterly FY 2019 QoQ YoY QoQ YoY S/ 973 S/ 4,265 Loans S/ 114,626 S/ 110,799 Net Income ▼-11.0% ▲+1.7% ▲+7.1% (ADB)* ▲+2.7% ▲+6.0% ▲+6.6% ROAE 14.9% 17.0% CoR 1.77% 1.60% ▼-220 bps ▼-140 bps ▼-50 bps ▼+-2bps ▲+30
Slide 6: Earnings were boosted by universal banking businesses but partially offset
Earnings were boosted by universal banking businesses but were partially offset by results at the Holding level and in Microfinance Profitability FY 2019 Chart 1: Net Income Evolution (in million S/) Net Income S/ 4,265 ▲+7.1% WHT (89) ROAE 17.0% 305 Krealo (18) ▼-50 bps 4,265 Other (31) ROAA 2.3% (
Slide 7: Loan growth led by BCP's Stand-alone Retail Banking portfolio
Loan growth led by BCP’s Stand-alone Retail Banking portfolio Chart 1: Loan portfolio in average daily balances Chart 2: Retail Banking segment growth (figures in S/ million) (volume growth in %) + 4,626 FY grow th: 6,880 (6.6%) 67% share of total growth SME-Business (+3% 19/18) 110,799 3.4% 476 513
Slide 8: Deposits drove growth in Credicorp's funding structure
Deposits drove growth in Credicorp’s funding structure, mainly through BCP Stand-alone Chart 1: Evolution of Funding Structure Chart 2: Deposits by type (S/ million, Year-End Balance) (S/ million, Year-End Balance) ▲12 bps FY19 / FY18 2.37% 170, 000 , 000 2.25% 2.50% ▲ 7.1% ▲ 4.2% FY19 / FY18 150, 0
Slide 9: Cost of Risk increased, mainly through Retail Banking at BCP Stand-alone
Cost of Risk increased, mainly through Retail Banking at BCP Stand-alone Chart 1: NPL, IOL, and Cost of Risk Evolution 3.92% 3.97% (1) 3.88% NPL Ratio 3.65% 3.41% 3.00% 2.76% 2.81% 2.85% 2.56% (2) Internal Overdue 2.08% Loans (IOL) ratio 1.88% 1.78% Cost of Risk 1.60% 1.38% 2015 2016 2017 2018 2019
Slide 10: Risk-Adjusted NIM decreased 4bps in 2019
Risk-Adjusted NIM decreased 4bps in 2019 given that the improvement in BCP Stand-alone was offset by deterioration at Mibanco. Chart 1: NIM evolution Chart 2: Risk-adjusted NIM evolution 10
Slide 11: Non-Financial Income positively impacted by gains on Securities
Non-Financial Income positively impacted by gains on Securities Others 9.2% Chart 1:9.6% Evolution of non-financial Others 8.4% 9.2% income structure 11.8% Others (S/ million) 8.5% 9.6% ▲ 11.1% 9.2% 4.6% 9.6% 11.8%4,902 8.4% 8.5% FY19 / FY18 14.8% 11.8% 9.3% Net gain(1) on securities 16.6% 8.4% 4.6%
Slide 12: The efficiency ratio improved 30 basis points
The efficiency ratio improved 30 basis points Efficiency ratio FY - 19 vs FY - 18 evolution by subsidiary SISCO IV (1) 70 bps 30 bps BCP Stand-alone ▲ Net interest income 40 bps Mibanco ▲Salaries and ▼ Net interest income Grupo Pacifico ▲ Net earned premiums Investment Banking & Wealth ▲Salaries Man
Slide 13: BCP Stand-alone continues to progress in its digital distribution strategy
BCP Stand-alone continues to progress in its digital distribution strategy, which is focused on customer EXperience and EFficiency Chart 1: Digital Clients (1) Chart 3: Digital Sales Evolution (2) (% of total clients) (thousand of units, % of total units) +57% 3.3 Millions 1,180 % of digital sales b
Slide 14: In the long run, Credicorp consistently presents strong results
In the long run, Credicorp consistently presents strong results despite variations in economic cycles Chart 1: Net Income and GDP Growth evolution Chart 2: ROAA evolution Chart 3: ROAE and CET1 BCP Stand-alone evolution 14
Slide 15: Corporate Governance Developments
Corporate Governance Developments Credicorp is working to bolster the Company's governance framework with two objectives: • Maintaining governance structures which help drive long-term stakeholder value • Demonstrating leadership on corporate governance within our operating region Summary of Governa
Slide 16: Guidance FY 2020
Guidance FY 2020 Guidance Credicorp Ltd. Full Year 2020 2019 2020 Macroeconomic indicators Full year 2019 FY Guidance FY Guidance Real GDP growth % ≈2.5 - 3.0% 2.0% ≈3.0% Domestic demand real growth% ≈2.5 - 3.0% 2.4% ≈2.5% - 3.0% Private investment growth % ≈1.5 - 3.5% 4.0% ≈0.0% - 2.0% BCRP referen
Slide 17: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This material includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical information provided herein are forward-looking and may contain information abou
Slide 18: Earnings Conference Call Fourth Quarter 2019
Earnings Conference Call Fourth Quarter 2019