Slide 1: Earnings Conference Call Second Quarter 2019
Earnings Conference Call Second Quarter 2019
Slide 2: Economic Environment
Economic Environment I) President Vizcarra proposed a constitutional reform Chart 1: Peru: Banking Sector loans by type to call for general elections in 2020. (% change YoY, nominal) (1) 26.0 ▪ The bill includes a precision in which President 22.0 Companies Consumer Vizcarra will not be able to run
Slide 3: Overview - Credicorp's Lines of Business (LoBs)
Overview - Credicorp’s Lines of Business (LoBs) Universal Banking Microfinance Stand-alone Bolivia 2Q19 Contribution(1) 71.9% 2.4% 2Q19 Contribution(1) 8.8% 0.1% 2Q18 22.1% 13.9% 2Q18 29.1% 8.6% ROAE 1Q19 22.5% 7.4% ROAE 1Q19 21.3% 12.4% 2Q19 21.5% 15.8% 2Q19 20.0% 8.4% BCP Stand-alone: + Loan growt
Slide 4: Quarterly highlights
Quarterly highlights QoQ YoY Net income: S/ 1,099 million ▼ -0.2% ▲ 12.3% Profitability ROAE: 18.0% ▼ -50 bps ▼ -10 bps ROAA: 2.4% ▼ -10 bps ▲ 10 bps Quarter-end balances: S/ 109.4 billion ▲ 1.0% ▲ 6.4% Average daily balances: S/ 109.4 billion ▲ 1.8% ▲ 6.5% Loan portfolio Net provisions for loan los
Slide 5: YTD highlights 1H19 vs. 1H18
YTD highlights 1H19 vs. 1H18 Net income: S/ 2,199 million ▲ 9.1% Profitability ROAE: 17.9% ▼ -60 bps ROAA: 2.5% ▲ 10 bps Quarter-end balances: S/ 109.4 billlion ▲ 6.4% Average daily balances: S/ 108.5 billion ▲ 6.7% Loan portfolio Net provisions for loan losses: S/ 831.5 million ▲ 21.5% Cost of risk
Slide 6: Loan Portfolio Evolution
Loan Portfolio Evolution Chart 1: Interest-Earning Assets (S/ million – quarter-end balances) Total Investments, Loans expanded in average 21% daily balances, mainly in Retail Banking in BCP Stand- alone Others, Loans, 66% 3% Loans expansion mainly in LC for Retail Banking and Mibanco. Cash and due
Slide 7: Funding Cost and Funding Structure
Funding Cost and Funding Structure 3.02% Chart 1: Funding Cost – Credicorp(1) 2.92% 2.91% 2.67% 2.58% 2.38% 2.44% 2.45% 2.56% 2.51% 2.33% 2.34% 2.41% 2.37% 2.34% 2.32% 2.45% 2.35% 2.26% 2.39% 2.39% 2.33% 2.26% 2.25% 2.27% 2.09% 1.99% 1.94% 1.88% 1.78% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q1
Slide 8: Net Interest Income (NII)
Net Interest Income (NII) Net 2Q18 1Q19 2Q19 QoQ YoY 1H18 1H19 1H19 vs 1H18 Interest Income 2,063 2,189 2,257 3.1% 9.4% 4,105 4,446 8.3% (S/ million) Net Interest Income (S/ Million) 8.6% Interest 1H19/1H18 Income (S/ million) Interest 9.6% Expenses 1H19/1H18 (S/ million) Interest on loans Other
Slide 9: Risk-adjusted NIM
Risk-adjusted NIM Chart 1: NIM, Risk-adjusted NIM and Cost of Risk 2018-2019 Evolution 0.06 0.06 5.52% 5.64% 5.48% 5.40% 5.37% 0.05 0.05 5.16% 5.28% 5.25% 4.62% Recovery in 0.04 4.48% 4.39% 4.43% 4.39% 0.04 4.37% Risk-Adjusted 4.22% 4.39% NIM 0.03 0.03 0.02 0.02 1.67% 1.64% 1.52% 0.01 1.48% 1.47% 1.
Slide 10: Non-Financial Income
Non-Financial Income Non-financial income 1H19 vs 1H18 (S/ million) 1H19 vs 1H18 growth: +203.3 (9.4%) +6.9% +3.5% (1) (1) Includes Net gain from associates, Net gain from exchange differences and others. 10
Slide 11: Operating Efficiency
Operating Efficiency Efficiency ratio 1H19 vs 1H18 evolution by subsidiary Grupo Pacifico Net earned premiums BCP Stand-alone Net earned income Mibanco Salaries and ▼ Net interest income Others ▼ Derivatives results and Salaries in Credicorp Capital (1) Grupo Pacifico: The increase in net earned pre
Slide 12: Guidance FY 2019
Guidance FY 2019 2019 Revised Guidance Macroeconomic indicators FY Guidance FY 2019 Real GDP growth % (1) ≈3.7% ≈2.5 - 3.0% Domestic demand real growth% (1) ≈3.8% ≈2.5 - 3.0% Private investment growth % (1) ≈5.3% ≈1.5 - 3.5% BCRP reference rate year-end 2.75% 2.25% (1) Inflation % 2.3% 2.2% Exchange
Slide 13: Credicorp Strategy
Credicorp Strategy CREDICORP WAY GOVERNANCE GROWTH ✓ Best practices ✓ Lines of business ✓ Organic Growth ✓ Leverage our scale ✓ Organizational structure ✓ Inorganic growth ✓ Transformation ORGANIC GROWTH DIGITAL GROWTH INORGANIC GROWTH Business development Each Line of Business has a specific Dedica
Slide 14: BCP's Transformation program
BCP’s Transformation program Focused on EXperience and EFficiency Success Stories Sales (1) (% of total sales) Yape total users (millions of users) 34,7% 31,7% 1,09 5,1% 9,6% Digital 0,70 +56,9% Self-Served 26,6% 25,1% 0,38 0,27 0,17 0,21 2Q18 2Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Digital Clients (2) (
Slide 15: Pacifico's Transformation program
Pacifico’s Transformation program North Success Stories % of self-managed broker # 1 in # 1 in # 1 in transactions Growth Experience Efficiency (% of total broker transactions) We have 9 aspirational Key Results Enablers Consumer Experience % of Digital applications of Digital Life Advisory Model Di
Slide 16: Mibanco's Transformation program
Mibanco’s Transformation program North Ongoing Stories # 1 in # 1 in # 1 in • Information access Growth Experience Business • Comencial productivity Model Our Purpose: Digital Customer Management Transforming lives. Writing together our progress stories. Loan Disbursements (S/ MM) Enablers Costumer
Slide 17: Krealo Company Builder
What does Krealo do? Creation of new fintechs or investing and building on existing fintechs Online and physical solution provider Provides payments solutions to Peruvian merchants Krealo Company Builder Wallet Learning Provides account and payment services to underbanked Chilean customers Krealo Pa
Slide 18: Inorganic growth: rationale of recent transactions
Inorganic growth: rationale of recent transactions Investment Banking & Wealth Management Microfinance Builds upon existing Credicorp Capital business to Attractive macroeconomic and microfinance become undisputed leader in equities and fixed fundamentals in Colombia income trading in Colombia Attra
Slide 19: 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