Slide 1: Earnings Conference Call 1Q/2021
Earnings Conference Call 1Q/2021
Slide 2: Market Backdrop, 1Q21 Results, Outlook, Key Takeaways
<1> Market Backdrop <2> 1Q21 Results <3> Outlook <4> Key Takeaways
Slide 3: Market Backdrop
CREDICORP <1> Market Backdrop
Slide 4: Sanitary situation and political landscape continue to be factors of uncertainty
Sanitary situation and political landscape continue to be factors of uncertainty Excess mortality in Peru and Metropolitan Lima* Peru: Composition of the Congress(2) (7-day average, Sinadef, as of April 25th) (1) (number of seats) ▪ Peru: according to initial polls, Castillo leads voting intentions
Slide 5: Despite focalized lockdowns, economic activity continued to recover in the first quarter of 2021
Despite focalized lockdowns, economic activity continued to recover in the first quarter of 2021 Electricity demand Price of Copper Seasonally-adjusted GDP (USD/lb., as of May 5th) (3) (4Q19 = 100) (1) (4Q19 = 100) (2) We expect GDP to rebound 9% in 2021 in a context of strong commodity prices and e
Slide 6: New information on economic policy and the regulatory environment
New information on economic policy and the regulatory environment Loans to the private sector in March 2021 (% change YoY) (1) Economic Policy and Regulatory environment New Private Pension Fund withdrawal: W/o Reactiva W/ Reactiva • Congress approved a new Private Pension Fund for current contribut
Slide 7: 1Q21 Results
CREDICORP <2> 1Q21 Results
Slide 8: Credicorp's Key Financial Highlights for 1Q21
Credicorp’s Key Financial Highlights for 1Q21 We continue edging back to profitability, bolstered by a decrease in the cost of risk that was offset by an increase in life insurance claims and IBNR provisions. S/138 bn S/2,123 m 1.63% Loan Net Interest Cost of Portfolio (1) Income Risk -0.5% QoQ +13.
Slide 9: Credicorp's LoB's Highlights for 1Q21
Credicorp’s LoB’s Highlights for 1Q21 BCP Stand-alone drives recovery but Mibanco’s recovery is still sluggish. Pacifico's Life business has been hit by higher mortality rates this quarter. Figures in S/ millions LoB’s Earnings Contribution and ROAE show a diverse set of results Universal Banking Mi
Slide 10: Universal Banking: Evident recovery at BCP Stand-Alone
Universal Banking: Evident recovery at BCP Stand-Alone Figures in S/ millions BCP Stand-Alone’s 1Q21 earnings contribution is closer to pre-pandemic levels • Net interest income contracted 10.4% YoY, driven by lower interest rates and a less profitable asset mix. This was partially offset by a more
Slide 11: Microfinance: Mibanco's recovery is taking longer
Microfinance: Mibanco´s recovery is taking longer Figures in S/ millions After evident earnings recovery in recent quarters, new lockdown measures Mibanco Colombia generated positive returns due to caused a downturn in economic activity. Subsequently, loan origination loan origination reactivation,
Slide 12: Insurance and Pensions: Pacifico life severely impacted by second wave of COVID-19
Insurance and Pensions: Pacifico life is severely impacted by a second wave of COVID-19, while Pension business faces regulatory challenges Figures in S/ millions Pacifico Prima AFP Pandemic pain is reflected in higher claims and IBNR provisions in Life, AuMs continue to be pressured by regulation,
Slide 13: Investment Banking and Wealth Management: AuMs and income grew YoY
Investment Banking and Wealth Management: AuMs and income grew YoY given that the decline in the capital markets was pronounced in 1Q20 Figures in S/ millions The Asset Management business drove AuMs QoQ growth, Income contracted QoQ, mainly driven by a downturn in the mainly through net new money C
Slide 14: Consolidated Performance
Consolidated Performance 14
Slide 15: Credicorp's 1Q21 Assets grew YoY driven by GP Loans and Investments
Credicorp´s 1Q21 Assets grew YoY driven by GP Loans and Investments Figures in S/ millions Growth in Interest-earning assets (IEA) QoQ was The dynamics of the Mortgage, Consumer and SME-PYME portfolios improved mainly driven by investment activity QoQ, which was offset by a contraction in the Wholes
Slide 16: Funding structure improved YoY by uptick in low-cost deposits
Funding structure improved YoY by an uptick in the share of low-cost deposits and Liability Management (LM) strategies Figures in S/ millions Funding Cost increased QoQ due to LM related charges. Nonetheless, Low-cost Deposits growth QoQ is driven by high market liquidity lower interest rates, impro
Slide 17: Positive evolution of payments and asset quality in Retail Banking
Positive evolution of payments and asset quality in Retail Banking, while the situation at Mibanco was less favorable Figures in S/ millions Strong payments on loans due and uptick in expirations; High Retail Banking’s NPL ratio improved driven mainly by the uncertainty portfolios (1) continued cont
Slide 18: The Structural Cost of Risk continued to follow a downward trend
The Structural Cost of Risk continued to follow a downward trend, driven by a decrease in the probability of default for most of BCP Stand-Alone’s segments Figures in S/ millions Provision expenses contracted QoQ, driven by the Wholesale Structural risk at BCP Stand-alone continues to register a sus
Slide 19: NIM remains flat QoQ
NIM remains flat QoQ, affected by a less favorable mix in interest-earnings assets and financial expenses for a liability management transaction BCP Stand-Alone improves Risk-adjusted NIM as provisions drop Credicorp’s 1Q21 NIM is impacted by: A change in the Interest Earnings Assets mix, where the
Slide 20: Non-Financial Income grew 24.7% YoY
Non-Financial Income grew 24.7% YoY driven by fees and gains on securities, but decreased QoQ due to lockdown measures Figures in S/ millions Non-Financial Income contracted 10.2% QoQ due to a drop in the …but grew on a YoY basis due to an increase in the net gain on transactions level during the Fe
Slide 21: Loss ratio in Life Business deteriorated due to claims and IBNR
Loss ratio in Life Business deteriorated due to an increase in claims and IBNR provisions related to COVID-19 Figures in S/ millions P&C loss ratio improved YoY due to ongoing restrictions on mobility Life Claims and IBNR provisions increased due to an uptick in while the Life loss ratio increased d
Slide 22: The efficiency ratio deteriorated YoY
The efficiency ratio deteriorated YoY driven by lower Income (Interest Margins) at BCP Stand-Alone and Mibanco Expenses remain under control but lower income YoY - which was primarily BCP Stand-Alone Income and Expenses evolution attributable to liability management charges at BCP Stand-Alone - nega
Slide 23: We maintain a high liquid position and an adequate capital base
We maintain a high liquid position and an adequate capital base Figures in percentages BCP Stand-Alone and Mibanco maintain ample liquidity CET1 Levels remain within internal targets BCP Stand-Alone BCP Stand-Alone CET1 280% 250.8% LCR Soles 250% 220% 190% 217.2% LCR USD 160% 130% 100% Mini mum 70%
Slide 24: We advance on our digital journey
At both the business and Credicorp levels, we advance on our digital journey, which is key to efficiently sustaining growth Our digital efforts fuel clients’ growth at BCP Stand-Alone At the Credicorp level, we are fostering ecosystems and new business models to serve our core clients’ needs BCP Sta
Slide 25: Sustainability: first Sustainability Report at Credicorp level
Sustainability: We published our first Sustainability Report at Credicorp level in March, with details of our 2020-2025 Sustainability program 25
Slide 26: Outlook
CREDICORP <3> Outlook
Slide 27: 2021 a transition year for profitability recovery
We continue to see 2021 as a transition year for profitability recovery, while speed is subject to key uncertainties 1Q21 Guidance 2021 Outlook Results Real GDP Growth 8% - 10% est. 4% 8%-10% Loan Growth (1) 4% - 8% -0.3% lower end of guidance Net Interest Margin 3.9% - 4.4% 3.7% sluggish recovery C
Slide 28: Key Take-aways
CREDICORP <4> Key Take-aways
Slide 29: Key Take-aways
Key Take-aways 1. Despite focalized lockdowns, economic reactivation continued in 1Q21 and the government has recently announced that it will accelerate the vaccination process. Nonetheless, the sanitary situation and political landscape remain key factors of uncertainty. 2. In 1Q21, on-going recove
Slide 30: Appendix
CREDICORP 5. Appendix
Slide 31: Glossary
Glossary Loan Portfolio related to Reactiva Peru and FAE-Mype programs to respond quickly Government Program Loans (“GP or GP loans”) and effectively to liquidity needs and maintain the payment chain. Structural Loans Loan Portfolio excluding GP Loans Impairment or IFRS9 modification loss / amortiz
Slide 32: Earnings Conference Call 1Q/2021
Earnings Conference Call 1Q/2021