Slide 1: Earnings Conference Call Fourth Quarter & Full-year 2018
Earnings Conference Call Fourth Quarter & Full-year 2018
Slide 2: In the News
In the News External Environment: most relevant topics for 4Q18 and 2018 Tailwinds Headwinds Political Environment ▪ Growth expected to ▪ Ongoing deceleration of ▪ Referendum in December situate close to 5.0% global growth. had no material impact 4Q18 YoY in 4Q18. on the business environment. ▪ GDP
Slide 3: Economic Environment
Economic Environment Chart 1: Peru – GDP and Non-primary GDP Chart 2: Peru – Domestic Demand (% change YoY) (1) (% change) (2) 2018e vs 2017 ▲4.0% 8.0 8.0 4Q18e vs 4Q17 ▲5.0% GDP Non-Primary GDP Non-Primary GDP: 7.0 7.0 4Q18E vs 4Q17 ▲4.6% 6.0 6.0 5.0 5.0 4.0 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2018
Slide 4: Overview - Credicorp's Lines of Business – Full-year 2018
Overview - Credicorp’s Lines of Business (LoBs) – Full-year 2018 Universal Banking Microfinance Stand-alone Bolivia 2018 Contribution(1) 71.7% 1.9% 2018 Contribution(1) 11.2% 0.1% 2017 20.3% 12.0% 2017 24.4% -1.7% ROAE ROAE 2018 20.3% 11.8% 2018 25.9% 9.1% BCP Stand-alone: + Good loan growth even th
Slide 5: Quarterly highlights
Quarterly highlights QoQ YoY Net income: S/ 957 million ▼ 5.4% ▼ 10.0% Profitability ROAE: 16.3% ▼ 170 bps ▼ 320 bps ROAA: 2.2% ▼ 20 bps ▼ 20 bps Quarter-end balances: S/ 110.8 billion ▲ 5.5% ▲ 10.2% Average daily balances: S/ 108.2 billion ▲ 3.7% ▲ 10.8% Loan portfolio Net provisions for loan losse
Slide 6: FY 2018 highlights
FY 2018 highlights 2018 vs. 2017 Net income: S/ 3,984 million ▼ -2.6% Profitability ROAE: 17.5% ▼ 230 bps ROAA: 2.3% ▼ 20 bps Quarter-end balances: S/ 110.8 billlion ▲ 10.2% Average daily balances: S/ 103.9 billion ▲ 9.2% Loan portfolio Net provisions for loan losses: S/ 1,531.7 million ▼ 14.4% Cost
Slide 7: Interest-earning assets
Interest-earning assets Chart 1: Interest-Earning Assets (S/ billion – quarter-end balances) ▲ 5.4% ▲2.9% QoQ YoY Total Loans 63.1% 67.6% 67.7% ▲ 5.5% QoQ ▲10.3% YoY Total Investments 21.0% ▲ 3.0% QoQ ▼ 0.3% YoY 20.8% 20.4% Cash, due from banks and interbank funds 15.9% 11.6% 12.0% ▲ 9.0% QoQ ▼ -22.
Slide 8: Funding Structure and Funding Cost
Funding Structure and Funding Cost Chart 1: Evolution of Funding Structure Chart 2: Deposits by type (S/ billion- quarter-end balances) (S/ billion- quarter-end balances) 160, 000 , 000 ▲2.3% ▲ 6.8% 104.6 YoY QoQ 97.4 133.2 136.3 97.2 Non-interest 140, 000 , 000 127.7 bearing demand 25.6% deposits 1
Slide 9: Net Interest Income (NII)
Net Interest Income (NII) Net 4Q17 3Q18 4Q18 QoQ YoY 2017 2018 2018/2017 Interest Income 2,066 2,139 2,244 4.9% 8.6% 8,072 8.489 5.2% (S/ million) Chart 1: Interest Income in LC Chart 2: Interest Income in FC (S/ Million) (S/ Million) NII generation was 8.517 8.656 favored by loan expansion 1.6% 20
Slide 10: Cost of risk
Cost of risk(1)(2) Chart 1: Evolution of Cost of Risk 4Q18 vs 3Q18 ▼-20 bps QoQ in the Cost of risk 1.67% 1.47% Cost of risk BCP Mibanco Cost of risk 3Q18 4Q18 Chart 2: Evolution of Cost of Risk 2018 vs 2017 ▼-40 bps 2018 vs 2017 in the Cost of risk 1.78% 1.38% Cost of risk El Nino Cost of risk BCP
Slide 11: Risk-adjusted NIM
Risk-adjusted NIM Annual evolution Clear recovery in Risk- Adjusted NIM 2018 11
Slide 12: Non-Financial Income
Non-Financial Income Chart 1: Non-financial income evolution (S/ million) +6.0% 4Q18 vs 3Q18 Chart 2: Non-financial income full-year evolution (S/ million) - 5.9% 2018 vs 2017 Due to a gain on sale of securities in 2017 (S/ 444.7 millions(1)) (1) Sale of BCI shares = S/ 281 million and ENEL shares =
Slide 13: Operating Efficiency
Operating Efficiency Operating Income and Expenses (S/ Million) ▲ 30 bps ▲ 190 bps ▲40 bps YoY QoQ 45.4% 43.8% 45.7% 44.1% 8,000 43.7% Efficiency ratio 14,510 13,654 6,000 Net interest income 3,839 8,489 3,646 8,071 4,000 3,517 Operating Income 2,139 2,244 2,066 Fee income + 9.2% YoY 2,000 2,907 3,1
Slide 14: BCP's north stars for 2021
BCP’s north stars for 2021 1. Our Purpose Transform plans into reality oc, ¢ s S #Test&Learn g #CustomerCentricity x #Risk-Conscious&Righteous £ #Collaboration ® . \ #GiveYourBest wv 5. Results #BoostYourSkills S © Y s g pS g N g ny —/ With a WOW Team 14
Slide 15: Transformation program
Transformation program current scope Customer Experience * Yape Digital Journeys * Digitallabs = Digital Marketing Data & Analytics Next-gen architecture IT infrastructure optimisation IT id, APIs, and Ecosystems cy Data architecture Advanced Analytics Big Data labs Culture & Leadership * Digitizati
Slide 16: Key results
Key results a Traditional a Digital 2016 2017 2018 — " 149 million monthly transactions 100% 96% 80% 59% 60% 48% mDec 2016 mDec 2017 40% m= Dec 2018 20% 0% Digital * Digital + POS Off-branch * 1 Customers who buy online or make 50% of their monetary transactions online or 50% of their non-monetary t
Slide 17: Digital sales
Digital sales Deposits (in units) Saving account openings Digital Jun 2017. Dec 2017. Jun2018 Dec 2018 mBack office mBranch mSelf-service mDigital 250,000 200,000 150,000 100,000 50,000 0) Time deposits ©) Jun 2017 Dec 2017 Jun 2018 Dec 2018 m Branch + remote m Digital Loan portfolio (in units) Cred
Slide 18: Customer satisfaction
Customer satisfaction Ee Segment (# ranking) 89% 86% Private banking (#1) 83% — 78% Middle-market (#1) 73% 74% 75% SMEs — Businesses (#1) = 710% = Enalta (#1) 67% > 67% 70% Corporate (#1) 64% 67% ~ Institutional (#1) 48% 57% 49% SMEs - Pyme (#1) 45% 44% Affluent (#1) 38% ° 35% 35% Consumer (#3) 9 31
Slide 19: Guidance FY 2019
Guidance FY 2019 2019 Macroeconomic indicators FY Guidance Real GDP growth % (1) ≈3.7% Domestic demand real growth% (1) ≈3.8% Private investment growth % (1) ≈5.4% BCRP reference rate year-end 3.25% (1) Inflation % 2.5% Exchange rate Year-end ≈3.35% - 3.40 2019 2018 Credicorp FY Guidance FY Results
Slide 20: 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 21: Appendix
Appendix Earnings Conference Call Fourth Quarter 2018
Slide 22: Delinquency and Coverage ratios
Delinquency and Coverage ratios Chart 1: Evolution of Delinquency ratios 4.41% 4.49% 4.42% 4.26% 4.22% Adjusted NPL ratio (1) 4.03% 4.15% NPL ratio 4.09% 3.92% 3.88% 3.97% 3.40% 3.65% 3.30% 3.28% 3.17% NPL over 90-days ratio 3.02% 3.10% 3.00% 2.98% 3.03% 3.04% IOL (2) ratio 2.76% 2.81% IOL over 90-d
Slide 23: Dollarization
Dollarization Loan Portfolio Dollarization(1)(2) FC portfolio participation: - Credicorp: 40.7% in 4Q17 and 40.8% in 4Q18 -BCP Stand-alone: 38.1% in 4Q17 and 38.2% in 4Q18 Historic Max Level of dollarization since 79% 77% 25% 63% 33% 15% 7% 66% 68% 2009(3) 43.0% 5.2% 8.7% 13.6% 9.0% 6.9% 4.6% of tot
Slide 24: Guidance and FY 2018 Results
Guidance and FY 2018 Results 2018 Macroeconomic indicators FY Guidance Real GDP growth % (1) ≈4.0% Domestic demand real growth% (1) ≈4.4% ▲ 40 bps vs previous guidance Private investment growth % (1) ≈4.8% ▲ 30 bps vs previous guidance Public investment growth % (1) ≈8.4% ▲ 490 bps vs previous guida