Banco De Credito Del Peru Sa · BVL:CREDITC1
Banco De Credito Del Peru Sa — Debt Investor Presentation (2020)
60 slides from Banco De Credito Del Peru Sa's debt investor presentation, 2020
Slide 1: Fixed Income Presentation Fourth Quarter 2019
RSS »BCP> Fixed Income Presentation Fourth Quarter 2019
Slide 2: Disclaimer
>BCP> Disclaimer The information contained herein has been prepared by Banco de Crédito del Pert (“BCP”) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment or other advice. No represe
Slide 3: Investment Highlights
>BCP> Investment Highlights 1) Strong Macroeconomic Fundamentals and Underpenetrated Financial System (2 ) Leading Financial Institution in Latin America and Peru 3 | Solid Growth and Profitability with Strong Efficiency Levels (4) Solid Asset Quality and Stable Funding Base 6 Disciplined and Conser
Slide 4: Table of Contents
>BCP> Table of Contents I. Macroeconomic Outlook ll. Sociodemographic Indicators Ill. Peruvian Financial System IV. BCP Overview V. Transformation Strategy VI. Governance VIL Additional Information
Slide 5: I. Macroeconomic Outlook
»BCP> |. Macroeconomic Outlook
Slide 6: Sovereign credit ratings by country
Grade Scale Peru Chile Colombia Brazil Mexico Moody's A+/A1 *+6 (estable) S&P (estable) A/A2 *+5 Fitch (estable) Moody's Moody's A-/A3 *+4 (estable) (negativo) S&P(estable) BBB+/Baa1 *+3 S&P (negativo) Fitch (estable) Moody's (estable) BBB/Baa2 *+2 Fitch (estable) Fitch (negativo) BBB-/Baa3 *+1 S&P
Slide 7: Peru's economic performance and outlook remain above LatAm peers
>BCP> Peru’s economic performance and outlook remain above LatAm peers GDP Growth (real, %) = 3.0 a SS 2006 2008 2010 2012 2014 2016 2018e 2020e Peru Chile Colombia Mexico Brazil Current Account Balance (% of GDP) 2006 2008 2010 2012 2014 2016 2018 2020e Peru Chile Colombia International Reserves (%
Slide 8: Peru will remain as one of the most dynamic economies in the region
>BCP> Peru will remain as one of the most dynamic economies in the region Strong fundamentals underpin Peru's position vs other emerging markets (low public debt, higher international reserves, controlled inflation) GDP growth in 2020 will come above 2019 mostly due to a recovery of primary sectors
Slide 9: GDP growth: GDP and non-primary GDP
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Non-primary GDP 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 GDP 4Q18 1Q19 2Q19 3Q19 4Q19
Slide 10: Investment project pipeline
Investment 1/ Investment 1/ Project State Project Metal State (USD millions) (USD millions) Major 12,500 Quellaveco Copper 3,888 El Niño Reconstruction 7,900 Mina Justa Copper 703 Southern Peruvian Pipeline 4,600 Toromocho Expansion Copper 703 Airports 2,220 Corani Silver 585 Jorge Chávez Expansion
Slide 11: Fiscal and external indicators
-5.0 10.0 15.0 20.0 25.0 0.0 5.0 -15.0 -10.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -1.8 2022 2023 -1.6 -1.3 2024 -1.0
Slide 12: Monetary Policy
>BCP> Monetary Policy The Central Bank lowered its monetary policy rate 5Opbs during 2019, leading the reference rate to 2.25%... Inflation (% change y/y) Monetary policy rate (%) Headline Inflation 5.00 Nominal ——Core inflation —— Nominal Real 4.00 3.00 2.00 Neutral: 150% aaa Wiener 1.00 0.00 uamam
Slide 13: FX and External Accounts
>BCP> FX and External Accounts We maintain a FX forecast of USDPEN 3.35-3.40 by year end Trade Balance (USD billions, 12-months-rolling) USDPEN and Copper (levels and USD/Ib.) 3.8 18 3.6 2.0 78 2.2 66 34 24 3.2 2.6 28 3.0 30 28 32 26 3.4 ——USDPEN 36 24 ——=Copper (RHS, inverted axis) 38 22 4.0 erepNR
Slide 14: Peru has room to catch-up in the medium term
>BCP> Peru has room to catch-up in the medium term... Real GDP per capita today vs 50 years ago (1968 vs 2018, in USD PPP) 8,073 1968 25,775 2018 7,259 6,356 r E - - Chil: Peru Brazil Peru Colombia Chile Brazil Colombia Real GDP Per Capita (1975=100) 140 1975 GDP per Capita 120 similar to 2005 level
Slide 15: Growing Middle Class
>BCP> Growing Middle Class Size - Number of people earning over USD 15k per annum (thousands, metropolitan areas) Geography Rank 2016 2030 % change Absolute Change Mexico: Mexico City 1 3,772.3 9,440.6 150% 5,668.3 Brazil: Sao Paulo 2 3,220.8 8,025.4 149% 4,804.6 Argentina: Buenos Aires 3 3,844.7 6,
Slide 16: GDP by economic sectors
>BCP> GDP by economic sectors Between 2009 - 2019, Peru's GDP has registered a +4.5% compounded annual growth % of GDP 550,000 i 500,000 = Others 50.5% 450,000 mElectricity 1.9% 400,000 mCommerce 10.8% 350,000 300,000 mConstruction 5.8% 250,000 = Manufacturing 12.2% 200,000 Mining and 12.9% 150,000
Slide 17: Exports by type of product
>BCP> Exports by type of product Between 2009 - 2019, Peru registered compounded annual growth of +5.8% in exports 60,000 50,000 40,000 30,000 20,000 10,000 ie) 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 2018 2019 Non traditional includes: agriculture and livestock (12.1%), textile (2.9%), che
Slide 18: Exports by destination country
>BCP> Exports by destination country Exports by destination country — 2019 (% of Total Exports) I United States ar mChina m€urope “United States “LatAm mOthers mJapan mSouth Korea mCanada Source: SUNAT. Main destination countries . China Copper Fish meal Zinc Others . Europe Gold Agriculture and liv
Slide 19: Mining exports
>BCP> Mining exports Mining Exports - Products 35,000 30,000 CAGR OF 25,000 20,000 15,000 10,000 5,000 | [J t) 2009 2010 2011 Copper output 2012 2013 2014 2015 2016 2017 2018 2019 (production in thousand metric tons, investment in USD millions) Projects on the horizon (F) Quellaveco Toromocho’s Expa
Slide 20: Macroeconomic outlook - Peru
>BCP> Macroeconomic outlook - Peru 2012 2013 2014 2015 2016 2017 2018 2019e 2020e GDP (USS Millions) 193,582 202,889 202,230 191,517 194,745 214,332 225,353 227,767 239,708 GDP per capita (USS) 6,431 6,652 6,566 6,138 6,182 6,740 6,999 7,008 7,308 Real GDP (% change) 6.0 5.8 24 3.3 4.0 25 4.0 22 3.0
Slide 21: II. Socio-demographic indicators
»BCP> Il. Socio-demographic indicators
Slide 22: Peruvian banking system offers significant growth potential
>BCP> Peruvian banking system offers significant growth potential Total Economically Active Population (2018): 18 million Total Population (2018): 32 million [CAGR(1) 1.13%] [CAGR(1) : 1.84%] ( (— Urban EAP >) (Employed and Unemployed): Urban: 14 Million 25 Million 7 CAGR{(1) : 2.53% Ne Ne S Va ( Ru
Slide 23: Peru's average monthly family income has improved
>BCP> Peru's average monthly family income has improved mainly in the lo economic segments Peru: Socioeconomic levels by avg. household income - 2018 S/7,889 S/5,260 $/2,535 $/5,354 S/,563 5/3,697 S/3,252 8/2,794 S/826 S/514 9/2,427 $/2,280 O Average monthly family income Average monthly family avai
Slide 24: Socio-demographic trends provide business opportunities
>BCP> provide business opportunities Adults with post-secondary education (%) Peru: monthly average spending by segment (USD) 00 1,629 No 80 1327 1125 60 y 1,003 mYes 647 738 “0 416 452 ° 2008 2018 2000 2018 2000 2018 Young adult Adult MSESA mSESB =SESC =SESD mSESE (21-35 years) (36-65 years) Peru:
Slide 25: III. Peruvian Financial System
»BCP> IIL Peruvian Financial System
Slide 26: Peruvian Financial System
>BCP> Peruvian Financial System Snapshot 15 Commercial Banks (83.5% of Assets) 11 Financial companies 12 Municipal savings and loan associations 7 Rural savings and loan associations 9 Small-business development non-bank institutions 1 Leasing company 2 State-owned banks ROAE: 18.8% PDL 90 days: 3.1
Slide 27: Substantial Growth Potential
>BCP> Substantial Growth Potential Loan Penetration” (as a % of GDP) 40 41 41 41 41 Hl Consumer Mortgage [ll Companies 37 34 30 32 “= Le) _ _ & 5 : : 4 ‘ 3 24 26 27 26 26 27 ; 2008 2009 2010 20n 2012 2013 2014 2015 2016 20177 2018 3019 GDP and Loan Growth 33.8% Multiplier (Average for period 2008-20
Slide 28: Substantial Growth Potential
>BCP> Substantial Growth Potential Loans & Deposits Penetration (% of GDP)(1) ATM's per each 100,000 adults(1) L 95 ro ly | vl ws Ie | 60 a ig: se an ' 45 ' ' 3635 3532 59 59 1 27 2224 22 ! ! 50 il | 4 1 1 42 40 1 ign Eid nn cHl = BRA BOL_—COL URU MEX igi ia, xX CH COL. BOL mCredit/GDP mDeposits/GDP
Slide 29: IV. BCP Overview
>BCP> IV. BCP Ove
Slide 30: Overall market shares
>BCP> Overall market shares BCP and Mibanco have consolidated their Leadership but have room to grow in the retail business.... Leading Financial Institution in Peru” Rank Market Share (%) Wholesale Loans 1 36% SME Loans 1 35% Microfinance 1 27% Consumer Loans 1 18% Credit Cards 2 21% Mortgage Loans
Slide 31: Distribution Channels
>BCP> Distribution Channels Number of transactions - Monthly average (Millions of transactions) BCP Stand-alone +39,49% Hl Others(2) 45,51% + Digital Channels(3) +16,47% +12,22% 138 44% saaa0y, *1422% >) 40.89% > 46.50% no 102 52% 74 86 53% 67% Eek 56% 47% 48% oa 33% 34% 36% 40% 43% 2011 2012 2013 2
Slide 32:
Slide 33: Balance Sheet Snapshot
>BCP> Balance Sheet Snapshot Total Assets (S/ million, %) I Cash and due from banks lj Loans Investments Hl Others 143,887 46.9% 9 149,354 . - 12.6% 4.0%, 4qis 3019 Funding Structure (S/ million, %) Repurchase agreements [lj Bonds Others om Hl Due to banks Ml Deposits [ll Equity 149,354 2.2%, 408 3Q
Slide 34: Loan Portfolio in Avg. Daily Balances
>BCP> Loan Portfolio in Avg. Daily Balances Evolution (S/ Millions) +6.4% 17% 98,491 0.3% 98,154 an 99,787 88,728 88,244 89,756 9,763 9,910 10,031 4qis 1019 219 Loan growth contribution in S/MM Yearly 104,751 — Loans 4Q18 Wholesale Retail Mibanco usD Loans 4Q19 appreciation Mi scp Mibanco 42.0% 101,
Slide 35: Loan Portfolio Composition
>BCP> Loan Portfolio Composition Loans by Business Segments (S/ million, %) 98,491 98,154 29.0% 28.4% Corporate Middle - Market FX risk on credit risk - BCP Stand-alone §) Highly exposed [lll Exposed IJ Not exposed 0.3% 0.3% 0.3% 0.2% 0.2% 10.0% 10.3% 89.7% 89.4% 408 1Q19 2Q19 3Q19 4Qi9 () Includes
Slide 36: Asset Quality
>BCP> Asset Quality Cost of Risk & Provisions Hl Provision expense Recoveries = Cost of Risk 2.00% 1.85% 165% 158% 474 523 1.37% 407 348 394 418 Hd 455 Al -70 -61 -65 408 1Q19 2Q19 3Q19 4qi9 Delinquency Ratios (%) PDL with >90 days overdue() Hl OL Ratio = |OL Coverage Ratio NPL Ratio Ref. & Restr. R
Slide 37: Internal Overdue Loans ratio by Segment
>BCP> Internal Overdue Loans (IOL') ratio by Segment 5.29% 5.35% 5.42% 5.33% 5.20% 3.78% 2.65% 0.27% 0.37% 0.44% 0.43% 0.38% Dec 18 Mar 19 Jun 19 Sep 19 Dic 19 ——=SME - Pyme SME - Business Mibanco Credit Card Mortgage Consumer Wholesale (1)() Internal overdue loans: includes overdue loans and loans
Slide 38: Delinquency indicators by business line
>BCP> Delinquency indicators by business line Wholesale Banking 50 1.49% 153% 1.49% 131% 1.30% 133% 0.72% 0.68% 0.68! S/ Billion “ 0.52% 0.53% 0.51% 058% 0.61% 0.36% 942% 5 3399 0.35% 0.34% 042% 0.44% 0.49% 0.4m 047% 0.38% 0.35% 0.37% 0.37% 944% 0.43% 9.38% 0.32% 0.32% 9 6% 0.28% 0.27% 9:32% 0,28% 0
Slide 39: Delinquency indicators by business line
>BCP> Delinquency indicators by business line SME - Pyme 10 17.54% 17.20% 17.24% 16.15% 16.37% 16.08% 15,84% 16.96% 16.08% 15.89% 15.59% rary 4% 15.06% 27? 15.26% 15.08% 14.5305 14.36% 14.36% 14.10% a —_— 13.19% —_ 13.83% 13.60% 13.15% 13.33% ocwiwene 14% 12.00% T191% 41594 12.43% 12.91% 12.70% 12.4
Slide 40: Delinquency indicators by business line
>BCP> Delinquency indicators by business line Consumer » 5.84% 5.82% 5.95% 5.97% 6.03% | oy, 5.97% £27 5 ash 5.85% 5.34% 5.55% 5.60% . 5.29% 5.12% 5.12% 29% 5.12% 4 aa —_ 4.52% 2.96% 3.07% 3.02% 2.79% 4 238% 235% pygq 248% 242% 262% 2.71% 2.71% 2.72% 279% 2.75% 277% 9 rer > va oom - 1.67% 158% 1.55%
Slide 41: Delinquency indicators by business line
>BCP> Delinquency indicators by business line Mibanco 2 7.38% 7.00% 6.75% 39% 10 19% 8.13% 5.81% 5.74% 5.74% S619 s.56y 575% 585% 5.61% 4.76% 4.68% 4.67% 451% 4.39% 4.59% 456% 466% 4.68% S/ Billion a 40144 1015 2Q15 3Q15 4Q15 1016 2Q16 3Q16 4Q16 1017) 2Q17 3Q17 4Q17 Loans (Left axis) ———=!OL ratio(1
Slide 42: Financial Performance
>BCP> Financial Performance Net Income & ROAE Net Interest Income & Margin zeae >185% 7.88% 7.69% 7.78% 7.83% 7.91% 8.06% 7.77% joes 21.27% 20.60% 20.06% 6.02% "570% 5.83% 5.79% 5.90% 5.59% % 88 —. 4.98% 451% 469% 4.45% 4.44% 4.48% 4.49% +8.3% 3,628 +7.4% 3,350 2 7578 * 8139 11% 18 - a “18% we 136 -
Slide 43: Funding & Deposits
>BCP> Funding & Deposits Funding Structure (S/mm,%) Hl Deposits Deposits I Bonds and subordinated debt Dollarization Repurchase agreements Evolution HB Due to banks and correspondents 42.3% 127,986 +10% 128,415 123524 1.6% 21572 °°" 124184 75.6% 11.9% 4Q18 1Q19 () Inaverage daily balances Mix of Dep
Slide 44: Capital Management
>BCP> Capital Management BCP at Basel II (Regulatory Capital) (%) Risk Weighted Assets - Breakdown (S/bn) WM Credit risk [Hf Market risk Operational risk + additional no 122 14.17% - 5 requeriments 14 nl 16 17: 12.7% 10.28' BIS Regulatory Minimum 10.0% 4Q18 1Q19 2Q19 3Q19 4Q9 2 9 3 9 3 9 2 9 2 10 ml
Slide 45: V. Transformation Strategy
»BCP> V. Transformation Strategy
Slide 46: Digital clients, sales and Yape users
Chart 1: Digital Clients (1) Chart 3: Digital Sales Evolution (2) (% of total clients) +57% (thousand of units, % of total units) 3.3 Millions 1,180 % of digital sales by product ▲ 2.4x FY FY 2.1 Millions FY 19 / FY 18 2018 2019 3.2% 41% Advance on 25% 46% 31% wages 2.0% 15% 24% +20pp 490 21% Saving
Slide 47: VI. Governance
VI. Governance
Slide 48: Governance
>BCP> Governance Governance structure Board independence | General Shareholder’s Meeting ] | Board of Directors | mlndependent Chairman mDependent Dionisio Romero Paoletti Vice - Chairman Raimundo Morales Dasso* . Board of directors tenure Directors Roque Benavides Ganoza* Eduardo Hochschild Beeck*
Slide 49: Board of Directors
>BCP> Board of Directors Dionisio Romero Paoletti Raimundo Morales Dasso President Member of the Board since 2003, and Chairman since 2009. Vice President From October 1990 until March 2008, served as the Bank's CEO. Serves as Deputy Chairman of ‘the Board of Credicorp and several of its subsidiarie
Slide 50: Management Committee
>BCP> Management Committee General Manager (CEO) = Joined BCP in 1995. "MBA from J.L Kellogg Graduate School of Management. Gianfranco Ferrari Reynaldo Llosa Cesar Rios Risk Central Planning and Manager Finance Central «Joined BCP in Manager (CFO) 197. = Joined BCP in MBA from J.L. 7993. Kellogg = M
Slide 51: VII. Additional Information
»BCP> Vil. Additional Information
Slide 52: BCP Ratings
>BCP> BCP Ratings Local Credit Rating Agencies Bank Date of last review Institution Long Term Debt Corporate Bonds Mortgage Bonds Leasing Bonds Long Term Deposits Short Term Debt Short Term Deposits CDs Capital Debt Subordinated Tier II (1) Date is updated when there is a change in the outlook or ra
Slide 53: BCP Corporate Bonds and subordinated debt
>BCP> BCP Corporate Bonds and subordinated debt Breakdown of international bonds Issued Amount Outstanding Bond Issue date Duedate Tenure(years) Currency Original Amount Original Coupon Currency (000) Currency (000) “°° Subordinated? 07/11/2006 07/11/2021 5 USD 2,960 2,960 L3M + 2.79% Subordinated 1
Slide 54: Selected Financial Information
>BCP> Selected Financial Information Income Statement Summary ending December 3 (PEN in millions) 4Q18 3Q19 2018 2019 Financial income 2,685 2,778 10,210 10,967 Financial expense -683 -731 -2,632 -2,828 Gross financial margin 2,002 2,048 7,578 8,139 Provision for loan losses -348 -474 -1,508 -1,799
Slide 55: Selected Financial Information
>BCP> Selected Financial Information Balance Sheet Summary (PEN in millions) 4Qis 3Q19 4qQi9 Cash and due from banks and interbank funds 23,565 27,114 26,812 Investments at fair value through profit or loss and available-for-sale investments, net 18,169 18,406 v9 Gross loans 101,171 102,315 104,864
Slide 56: Selected Financial Information
>BCP> Selected Financial Information For the 12 months Selected Financial Ratios ending December 31 (%) 4Q18 3Q19 4Q19 2018 2019 Financial margin 6.02% 5.79% 5.90% 5.59% 5.77% ROAE 19.85% 21.27% 17.39% 20.60% 20.06% ROAA 2.39% 2.59% 2.16% 2.36% 2.46% Cost of risk 1.37% 1.85% 2.00% 1.49% 1.72% Past d
Slide 57: Client Segmentation
>BCP> Client Segmentation Business Wholesale Banking Group (WBG) Retail Banking Group (RBG) (1) Converted into Soles at the exchange rate of S/ 3.314 per US. Dollar, December 31, 2019 - SBS. Group Corporate Middle-Market Enalta Affluent Consumer SME - Business SME- Pyme Client Income/Sales/Total deb
Slide 58: Table of Calculations
>BCP> Table of Calculations Profitability Netinterest margin (NIM) Net interest margin on loans (NIM on loans) Risk-adjusted net interest margin (Risk-adjusted NIM) Return on average assets (ROAA) Return on average equity (ROAE) Funding cost Portfolio quality Past-dueloans ratio Internal overdue rat
Slide 59: Contacts
>BCP> Contacts Head of Treasury Division Pablo Hurtado Banco de Crédito BCP Calle Centenario 156 La Molina, Lima - 12, PERU Phone: (+511) 313-2500 E-mail: pablohurtadoa@bcp.com.pe Asset and Liability Management Cecilia Ramirez Banco de Crédito BCP Calle Centenario 156 La Molina, Lima - 12, PERU Phon
Slide 60: 22% @° >BCP>
22% @° >BCP>
Banco de Crédito del Perú — Debt Investor Presentation (2020) on 6ix