Slide 1: Earnings Conference Call May 2024
Earnings Conference Call May 2024
Slide 2: Safe Harbor
Earnings Conference Call Safe Harbor This material includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical fact are forward-looking and m
Slide 3: Strong Start to the Year Amid a Better Economic Environment
Earnings Conference Call Strong Start to the Year Amid a Better Economic Environment Core Income + Insurance ROE 1 Strong Financial Results 18.2% +8.2% vs 1T23 Resilient Risk Adjusted Margins, Improved Risk Adj. NIM MS of Low-Cost Deposits1 2 by Lower Provisions and Supported by Leadership 4.85% 39.
Slide 4: Developing Differentiated Business Models to Further Penetrate Peru's Microlending Market
Earnings Conference Call Developing Differentiated Business Models to Further Penetrate Peru’s Microlending Market Lending ~1MM microlending clients, mainly microbusinesses, 150K lending clients, engage in digital transactions, primarily 63% of which are outside of Lima and transact in cash for cons
Slide 5: 1Q24 Key Financial Highlights
Earnings Conference Call 1Q24 Key Financial Highlights 1 2 3 4 Loan Mix Shift and Funding Diversified Income Streams Controlled Risk Diversified Portfolio Advantage Drove NIM Growth and Solid Capital Base Total Loans1 NII CoR3 1Q24 Earnings Contribution4 -3.1% +9.4% 2.3% 77.5% Universal Banking YoY
Slide 6: Economy Shows Signs of Gradual Recovery; Expectations Improve
Earnings Conference Call Economy Shows Signs of Gradual Recovery; Expectations Improve Despite Political Noise and Recent Downgrade GDP and Payment Transactions Copper and Gold prices (y/y % change, as of Apr 30)1 (as of May 8)2 2500 4.50 Copper (USD/pound) Gold (USD/oz., RHS) 2400 4.30 2300 5.0 GDP
Slide 7: Latam Central Banks' Policy Rates Moved Lower in 1Q24
Earnings Conference Call Latam Central Banks’ Policy Rates Moved Lower in 1Q24 as Inflation Slowdown Continued 2.5% 2.7% 3.0% 2.5% 0.6% 1.1% -0.6% 0.2% Expected Economic Growth 2023 2024 2023 2024 2023 2024 2023 2024 (YoY % change) 1 U.S. Colombia Peru Chile Inflation CPI Rates Central Bank Policy R
Slide 8: Universal Banking: Positive Results Driven by Core Income
Earnings Conference Call Universal Banking: Positive Results Driven by Core Income; Further Boosted by Reversal of “El Niño” Provisions Earnings Contribution BCP Stand-alone 76.3% BCP’s drivers BCP Bolivia 1.2% (% change) QoQ YoY ROE1 Total (%, Annualized) -1.4% -3.6% Loans2 NII +1.5% +9.3% 25.2% 24
Slide 9: Yape: Nears Break-Even Point with Growth in Active Users and Engagement
Earnings Conference Call Yape: Nears Break-Even Point with Growth in Active Users and Engagement Over 11.5MM MAU Conducted an Average of 36 Transactions Revenue/MAU Nearing Cash Cost/MAU per Month Expenses/MAU Revenue/MAU Cash-cost/MAU (User in Millions) 5.2 5.1 36 35 MAU Monthly Transactions/MAU1 4
Slide 10: Yape Revenue Growth Fueled by Diversification Across Three Lines of Business
Earnings Conference Call Yape Revenue Growth Fueled by Diversification Across its Three Lines of Business Marketplace Lending Payments Yape Promos: Discount Lending Top-ups and Bills Payment on Restaurants and Movies Single Installment +82.5% Top-ups Tx vs 1Q23 +3.1x GMV vs 1Q23 Multi Installment +5
Slide 11: Microfinance: Mibanco Peru Recovers Profitability Through NII Growth
Earnings Conference Call Microfinance: Mibanco Peru Recovers Profitability Through NII Growth; Additional Boost by Reversal of “El Niño” Provisions Earnings Contribution Mibanco 5.5% Mibanco Peru Drivers Mibanco Colombia -1.0% (% change) QoQ YoY ROE1 (%, Annualized) Total -3.1% -6.1% Loans2 17.1% 3.
Slide 12: Grupo Pacifico: Exceptionally Strong Results Driven by Lower Loss Ratio
Earnings Conference Call Grupo Pacifico: Exceptionally Strong Results Driven by Lower Loss Ratio, Controlled Expenses and Solid Financial Performance Earnings Contribution Grupo Pacifico 12.9% Grupo Pacifico's drivers (% change) QoQ YoY Grupo Pacifico’s Insurance Service Results Insurance (S/ millio
Slide 13: Investment Management & Advisory: Rigorous Cost Control Drove Earnings Expansion
Earnings Conference Call Investment Management & Advisory: Rigorous Cost Control and Favorable Business Dynamics at WM Drove Earnings Expansion Earnings Contribution ASB & IM & Advisory drivers Credicorp Capital 2.8% (in US$ millions) Mar 23 Mar 24 Variation ROE1 and Income by Business2 (%, S/ milli
Slide 14: Balance Sheet and Pricing QoQ Dynamics Drove an Increase in the Yield on IEA
Earnings Conference Call Balance Sheet and Pricing QoQ Dynamics Drove an Increase in the Yield on IEA and Drove Down the Cost of Funds Assets: Loan Repricing at Higher Rates Drove Increase Liabilities: Accelerated Term Deposits Repricing in the Yield of IEA Reduced Funding Cost Despite Recent Bond I
Slide 15: Resilient NIM Bolstered by Growth in NII and Strong Fees
Earnings Conference Call Resilient NIM Bolstered by Growth in NII which, Coupled with Strong Fees, Boosted Core Income Growth Increasing NIM, Core Income Growth Driven Mainly Despite Decreasing Interest Rates in Soles by NII and Fee Income NIM and Risk Adjusted NIM Core Income (%) (S/ millions) +9.2
Slide 16: Moderate QoQ Increase in NPL Volumes at BCP
Earnings Conference Call Moderate QoQ Increase in NPL Volumes Driven by Individuals and Wholesale Banking at BCP NPL Volumes Increased at a Moderate pace QoQ, Key Drivers of QoQ NPL Volumes Dynamics Mainly Driven by BCP Total NPLs1, 2 Consumer: Refinanced loans from vulnerable (S/ millions) subsegme
Slide 17: Provision Expenses Decreased QoQ; Isolating the Impact of El Niño
Earnings Conference Call Provision Expenses Decreased QoQ; Isolating the Impact of “El Niño”, Provisions Increased Isolating the Impact of “El Niño” Provisions in 4Q23 and 1Q24, Provision Expense Increased QoQ at BCP and Mibanco Total Provisions (S/ millions) -30.6% QoQ QoQ Adjusted 1,173 Isolating
Slide 18: Efficiency Improvement Driven Mainly by Positive Operating Leverage at BCP
Earnings Conference Call Efficiency Improvement Driven Mainly by Positive Operating Leverage at BCP Operating Expenses Increased YoY Driven BCP and Mibanco Achieved Positive Operating Leverage by Disruptive Initiatives and IT Expenses at BCP Operating Expenses Income and Expenses Annual Growth (%) (
Slide 19: Sound Profitability, Mainly Supported by BCP and Pacifico: Net Income and ROE
Earnings Conference Call Sound Profitability, Mainly Supported by BCP and Pacifico Net Income and ROE (S/ millions, %) Full Year Results1 First Quarter Results 18.7% 18.2% 17.0% 16.8% 15.8% 13.9% 1.4% ROE Net Income 2019 2020 2021 2022 2023 1Q23 1Q24 (1) 2022 and 2023 figures are expressed in IFRS 1
Slide 20: Our 2024 Guidance
Earnings Conference Call Our 2024 Guidance Initial 2024 Guidance 1Q24 Results Updated 2024 Guidance Real GDP Growth around 2.5% 1.5% around 3.0% Total Loan Portfolio Growth1 3.0% - 5.0% -3.1% 3.0% – 5.0% Net Interest Margin 6.0% – 6.4% 6.3% 6.0% – 6.4% Cost of Risk 2.0% - 2.5% 2.3% 2.0% – 2.5% Effic
Slide 21: 1Q24 Closing Remarks
Earnings Conference Call 3 1 Remain confident Reaffirm our in our ability to achieve commitment to our Purpose: sustainable ROE of 18% “To contribute to improving by 2025, based on resilient lives by driving the NIM, lower COR changes that our and efficiency countries need” 2 4 As leaders, it is our
Slide 22: Appendix
Earnings Conference Call Appendix 1. Analyzing Coverage Ratio Evolution: Example Wholesale vs. Consumer Segments 23
Slide 23: Analyzing Coverage Ratio Evolution: Example Wholesale vs. Consumer Segments
Earnings Conference Call 1. Analyzing Coverage Ratio Evolution: Example Wholesale vs. Consumer Segments Wholesale Portfolio Stage 3 is 85%1 Collateralized and Explains the Evolution of the NPL Coverage Ratio Structural NPL Composition by Product: High level of Wholesale NPL which represent 20% 4,432
Slide 24: Earnings Conference Call May 2024
Earnings Conference Call May 2024