Credicorp Ltd. · NYSE:BAP
Credicorp — Q1 2022 Earnings Presentation
22 slides from Credicorp's earnings presentation, May 8, 2022
Slide 1: Earnings Conference Call May 2022
Earnings Conference Call May 2022
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: Delivered a Strong Start to the Year
Earnings Conference Call Delivered a Strong Start to the Year Financial Inclusion Advancing in the Execution Digital Clients 1 1 of Our Strategy 57% 347k people Core Income ROAE 2 Strong Financial Results +17.7% 17.0% YoY +63pbs QoQ Strong Solv Solvency Facilita Facilitates an ROAE E22 Dividend / Sh
Slide 4: Advancing Across Our Three Strategic Priorities
Earnings Conference Call Advancing Across Our Three Strategic Priorities Integrating Sustainability, at the Core of How We Do Business Accelerating Digital Transformation and Innovation at the Credicorp Level Ensuring the Best Talent Offering an Integral Value Proposition 4
Slide 5: Accelerating Our Digital Strategy to Expand TAM and Further Strengthen Operational Drivers
Earnings Conference Call Accelerating Our Digital Strategy to Expand TAM and Further Strengthen Operational Drivers Innovation Strengthening Digital Capabilities Developing overarching strategy through Disrupting ourselves to anticipate A new Governance to optimize returns A custormers’ evolving nee
Slide 6: Aligning our Talent with Credicorp's Transformation and Growth Strategy
Earnings Conference Call Aligning our Talent with Credicorp’s Transformation and Growth Strategy Developing tech/digital capabilities (up-skilling, re-skilling, cross-skilling) and leadership capacities Positioning Credicorp’s employer brand, offering an attractive value proposition for senior tech/
Slide 7: Progressing on our Sustainability Journey - 1Q22 Milestones
Earnings Conference Call Progressing on our Sustainability Journey - 1Q22 Milestones Environmental Social Governance Escalating the Eco-factoring product Financially Included +347k people Recognized by MERCO for Our Corporate Reputation US$4 million in disbursements. Through Yape, Soli and Mibanco.
Slide 8: Key Financial Highlights 1Q22
Earnings Conference Call Key Financial Highlights 1Q22 1 2 3 4 Favorable Volume Strong Core Income: Low Cost of Risk Strengthened Profits Dynamics NII + Fees + FX and Improving Loss Ratio and Solid Capital Base Structural Loans1 NII Structural CoR Earnings Contribution2 +12.4% +19.3% 0.79% 82% Unive
Slide 9: Increased Commodity Prices, Inflation and Interest Rates Generated Mixed Impacts on LOBs
Earnings Conference Call Increased Commodity Prices, Inflation and Interest Rates Generated Mixed Impacts on LOBs Latam: Economic Growth in 2022 Colombia 5.5 Peru 2.5 Chile 1.5 (YoY % change) 1 Inflation Rates Central Bank Policy Rates (% YoY, as of May 3rd)2 (%, as of May 3rd)2, 3 9.4 8.5 7.0 Colom
Slide 10: In Universal Banking, BCP Boosted Profitability Driven by Strong Core Income and Low Provisions
Earnings Conference Call In Universal Banking, BCP Boosted Profitability Driven by Strong Core Income and Low Loan Loss Provisions Earnings Contribution BCP Stand-alone 80.2% BCP’s drivers BCP Bolivia 1.6% (% change) QoQ YoY ROE3 Structural (%, Annualized) +1.2% +14.0% Loans1 Core 23.5% +1.3% +18.6%
Slide 11: Yape, with Over 9 million Users, is Evolving into a SuperApp
Earnings Conference Call Yape, with Over 9 million Users, is Evolving into a SuperApp with Three Main Ambitions Be the Main Payment Network Be present in Yaperos’ Daily Lives Solve Yaperos’ Financial Needs in Peru Active users (millions) Daily mobile top ups (thousands) +1.8x +133% 5.1 94 4.5 3.5 3.
Slide 12: In Microfinance, Mibanco Registers a YoY Uptick in Originations and Higher Core Income
Earnings Conference Call In Microfinance, Mibanco Registers a YoY Uptick in Originations, Higher Core Income and a Drop in Provisions Earnings Contribution Mibanco 7.8% Mibanco’s drivers Mibanco Colombia 0.3% (% change) QoQ YoY ROE Structural (%, Annualized) +3.5% +12.6% Loans1 Core +0.6% +28.1% 19.
Slide 13: The Insurance Business Continues to Recover as COVID-19 Claims Subside
Earnings Conference Call The Insurance Business Continues to Recover as COVID-19 Claims Subside and P&C Claims Normalize Earnings Contribution Grupo Pacifico 5.5% Grupo Pacifico's drivers (% change) QoQ YoY ROE & COVID-19 Life Claims Net Earned (%, Annualized; S/ millions) -3.0% +7.2% Premiums1 COVI
Slide 14: IB&WM Businesses are Affected by Funds Outflows and Market Volatility
Earnings Conference Call IB&WM Businesses are Affected by Last Year’s Funds Outflows, Market Volatility and Uncertainty Earnings Contribution ASB & 3.1% IB & WM drivers Credicorp Capital (% change in US$) QoQ YoY Income by Business1 (%, S/ millions) WM +3.0% +1.6% AUMs3 240 246 Others2 211 Corporate
Slide 15: NII and NIM Accelerate Driven by Structural Portfolio Growth and Rising Rates
Earnings Conference Call NII and NIM Accelerate Driven by Structural Portfolio Growth, Increasing Interest Rates and a Low-cost Funding Base Net Interest Income (NII) & NIM NIM Sensitivity to Interest Rates Increase (S/ millions, %) is Driven by Four Factors NII +19.3% 2,534 1 Balance sheet structur
Slide 16: Strong Growth in Core Income Across All Components
Earnings Conference Call Strong Growth in Core Income Across All Components Gains on FX Transactions Benefit from an Increase Fee Income Growth was Driven by Cashless Adoption in Transactions and Higher Volatility such as POS Usage and Interbank Transactions Core Income NII Fee Income FX Transaction
Slide 17: Strong Loan Portfolio Growth and Healthy Asset Quality Dynamics
Earnings Conference Call Strong Loan Portfolio Growth and Healthy Asset Quality Dynamics Peruvian Businesses Drive Loan Growth with Healthier Mibanco’s CoR Approached Pre-pandemic Levels, while BCP’s NPLs, while Write-offs Declined to Pre-pandemic Levels Remains Low Due to Better-than-Expected Payme
Slide 18: OPEX Increased YoY driven by BCP, while Mibanco's Efficiency Improves
Earnings Conference Call OPEX Increased YoY driven by BCP, while Mibanco’s Efficiency Improves Operating Expenses Increased YoY Driven by Efficiency Ratio Reflects Acceleration of Digital Strategy, Digital Investments, Transactional Costs, and while Mibanco’s Ratio Improved Consistently, Boosted by
Slide 19: Higher Profitability and Strong Solvency Led to an Increase in Dividends
Earnings Conference Call Higher Profitability and Strong Solvency Led to an Increase in Dividends Net income and ROAE (S/ millions, %) 18.5% 17.0% 14.9% 16.4% ROAE 11.3% FY 2019 10.8% 10.7% 17.0% FY 2020 3.4% 1.8% 1.4% FY 2021 13.9% Net Income ROAE -10.7% 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 20: Revised 2022 Outlook
Earnings Conference Call Revised 2022 Outlook Initial 2022 Guidance 1Q22 Results Revised 2022 Guidance Real GDP Growth1 +2.5% +3.5% +2.5% Structural Loan Portfolio Growth2 8.0% - 10.0% +12.4% 9% - 11.0% Net Interest Margin 4.3% - 4.6% 4.4% 4.6% - 4.9% Cost of Risk 0.8 - 1.1% 0.71% 0.8 - 1.1% Efficie
Slide 21: 1Q22 Key Takeaways
Earnings Conference Call 1 3 We are advancing in the execution of our strategic priorities: Our strong solvency Sustainability, Digital allowed us to increase Strategy, Best talent dividends this year 2 4 We continue to deliver strong financial results, We are closely monitoring 1Q22 boosted by core
Slide 22: Earnings Conference Call May 2022
Earnings Conference Call May 2022