Slide 1: Earnings Conference Call August 2022
Earnings Conference Call August 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: Key 2Q22 Indicators and Financial Performance Validate Our Strategy
Earnings Conference Call Key 2Q22 Indicators and Financial Performance Validate Our Strategy Even in Today’s Challenging Environment Financial Inclusion2 Advancing in the Execution BCP Digital Clients 1 1 of Our Strategy 58% >200k people Core Income ROE 2 Strong Financial Results +15.0% 16.9% YoY So
Slide 4: Credicorp Stands Out in the Current Environment Continuing to Strengthen
Earnings Conference Call Resilient, Profitable and Well-Capitalized, Credicorp Remains Focused on Driving Sustainable Growth Credicorp Stands Out Continuing to Strengthen in the Current Environment and Consolidate Our Core while Building our Own Disruptors Consolidated profitability Liquid and well
Slide 5: Consolidating and Innovating Core Business, Bolstering Parenting Advantage
Earnings Conference Call Reaffirming Credicorp’s Appetite for Strengthening and Consolidating Leading Core Businesses Consolidating and Innovating Bolstering Parenting Core Business Advantage Universal Banking: Strengthening Attracting and Retaining Top-Notch Talent our leadership in Peru and focusi
Slide 6: Complementing Current Portfolio, Credicorp is Selectively Pursuing Disruptive Opportunities
Earnings Conference Call Complementing Current Portfolio, Credicorp is Selectively Pursuing Disruptive Opportunities 1 2 3 Horizons Strengthening our core Entering new verticals Exploring the most disruptive profit pools in Peru and markets technologies as enablers of new business models Selected •
Slide 7: Progressing on Credicorp's Sustainability Journey - 2Q22 Milestones
Earnings Conference Call Progressing on Credicorp´s Sustainability Journey - 2Q22 Milestones Environmental Social Governance Developing Sustainable Finance Solutions Expanding Financial Inclusion and Education Developed and Approved Corporate Policies (click and review recent publications) First Int
Slide 8: Key Financial Highlights 2Q22
Earnings Conference Call Key Financial Highlights 2Q22 1 2 3 4 Mixed Volume Strong Core Income: Low Cost of Risk Strengthened Profits Dynamics NII + Fees + FX and Improving Loss Ratio and Solid Capital Base Earnings Contribution1 Structural Loans NII Structural CoR +14.1% +18.7% 1.08% 80.2% Universa
Slide 9: Higher Inflation Fuels Tighter Monetary Policy with Downside Risks to Growth
Earnings Conference Call Higher Inflation Fuels Tighter Monetary Policy with Downside Risks to Growth Economic Growth in 2022 Inflation Rates (YoY % change)1 (% YoY)2 13.1 10.2 8.7 8.5 U.S. 2.3 Colombia Colombia 6.5 Aug-20 Dec-20 Apr-21 Aug-21 Dec-21 Apr-22 Aug-22 Peru Chile Central Bank Policy Rate
Slide 10: Key Political Events and Regulatory Environment
Earnings Conference Call Key Political Events and Regulatory Environment Peru Presidential Address contained no new material announcements President Castillo reshuffled its cabinet and Kurt Burneo was appointed as the new Finance Minister Executive did not observe the bill to establish a Minimum Pen
Slide 11: In Universal Banking, BCP Boosted its Profitability
Earnings Conference Call In Universal Banking, BCP Boosted its Profitability Driven by Increased NII and Controlled Loan Loss Provisions Earnings Contribution BCP Stand-alone 78.9% BCP’s drivers BCP Bolivia 1.3% (% change) QoQ YoY ROE1 Structural (%, Annualized) +4.6% +15.3% Loans2 22.8% 18.1% NII +
Slide 12: 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) +1.9x 6.0 5.1 4.5 3.5 3.1 2Q21 3Q21 4Q21 1Q22 2Q22 Monthly Top
Slide 13: In Microfinance, Results were Driven by the Increase in NII
Earnings Conference Call In Microfinance, Results were Driven by the Increase in NII Boosted by Loan Growth and an Active Yield Management Earnings Contribution Mibanco 9.8% Mibanco’s drivers Mibanco Colombia 0.7% (% change) QoQ YoY ROE1 Structural (%, Annualized) +7.9% +20.3% Loans2 NII +4.9% +17.1
Slide 14: The Insurance Business Continues to Recover
Earnings Conference Call The Insurance Business Continues to Recover as the Sanitary Situation is Controlled, and Life and P&C Income Grow Earnings Contribution Grupo Pacifico 7.8% Grupo Pacifico's drivers (% change) QoQ YoY ROE1 & COVID-19 Life Claims Net Earned (%, Annualized; S/ millions) +0.7% +
Slide 15: IB&WM Results are Affected by Lower AUMs
Earnings Conference Call IB&WM Results are Affected by Lower AUMs, Impacted by Global Markets Volatility and Regional Political Uncertainty Earnings Contribution ASB & 0.3% IB & WM drivers Credicorp Capital (% change in US$) QoQ YoY ROE1 and Income by Business2 WM (S/ millions; %, Annualized) -13.5%
Slide 16: IEA Structure Shifts Toward Higher-yield and Repricing Picks up
Earnings Conference Call IEA Structure Shifts Toward Higher-yield and Repricing Picks up, Outpacing the Increase in Funding Cost Assets: Positive volumes and rates dynamics Liabilities: Migration to term deposits Interest Earning Asset (IEAs) Structure Funding Structure (S/ millions, %) (S/ millions
Slide 17: Core Income YoY Growth Driven Mainly by Net Interest Income and Fees
Earnings Conference Call Core Income YoY Growth Driven Mainly by Net Interest Income and Fees NII Growth was Attributable to Interest Earnings YoY Growth in Fee Income Driven by Cashless Adoption Assets Dynamics and Higher Interest Rates such as POS Usage and Interbank Transactions Core Income, NIM
Slide 18: Healthy Asset Quality with Mixed Dynamics QoQ
Earnings Conference Call Healthy Asset Quality with Mixed Dynamics QoQ, while Strong Structural Loan Growth Drives NPL Ratio Down YoY Structural NPL Volumes Increased QoQ in BCP, mainly in the SMEs Structural NPL Ratios Drop YoY Across Segments in line and Wholesale Segments; and Decreased at Mibanc
Slide 19: Cost of Risk Increased QoQ and Remains Within Guidance Range
Earnings Conference Call Cost of Risk Increased QoQ and Remains Within Guidance Range Adjusted Macro Variables Drive Higher Provisions at BCP, Key Drivers of Loan Loss Provisions Dynamics while Mibanco’s CoR Inches Down amid Positive Payment Behavior Structural Cost of Risk Ratio1,2 (%) Deterioratio
Slide 20: Efficiency Impacted Mainly by Innovation Related Expenses at BCP
Earnings Conference Call Efficiency Impacted Mainly by Innovation Related Expenses at BCP, Partially Offset by Improved Performance at Mibanco Operating Expenses Increased YoY Driven by IT Efficiency Ratio Reflects Acceleration of Innovation, while Expenses, Transactional Costs, and Disruptive Miban
Slide 21: Credicorp Consolidates Profitability Levels over the Last Twelve Months
Earnings Conference Call Credicorp Consolidates Profitability Levels over the Last Twelve Months Net Income and ROE (S/ millions, %) Net Income ROE 17.9% 17.2% 15.9% 17.3% FY 2019 ROE 17.0% 10.9% 6.3% FY 2020 1.4% FY 2021 13.9% -3.3% 1H19 2H19 1H20 2H20 1H21 2H21 1H22 21
Slide 22: 2022 Outlook
Earnings Conference Call 2022 Outlook 2Q22 Results 1H22 Results 2022 Guidance Real GDP Growth1 +3.0% +3.4% +2.5% Structural Loan Portfolio Growth2 +13.8% +13.1% +9% - 11.0% Net Interest Margin 4.9% 4.6% 4.6% - 4.9% Cost of Risk 1.0% 0.8% 0.8% - 1.1% Efficiency Ratio 44.6% 44.5% 44.0% - 46.0% ROE 16.
Slide 23: 2Q22 Key Takeaways
Earnings Conference Call 1 3 Delivering on our strategy, driving Sustainability, Digitalization, and Well-capitalized balance Best Talent sheet supports execution of strategic initiatives 2 4 Achieving solid ROE, Well-positioned to navigate boosted by core income 2Q22 current environment, driving an
Slide 24: Earnings Conference Call August 2022
Earnings Conference Call August 2022