Slide 1: Earnings Conference Call Third Quarter 2019
Earnings Conference Call Third Quarter 2019
Slide 2: Despite political uncertainty, Peruvian economy remains strong
Despite political uncertainty, Peruvian economy remains strong I) On September 30th, President Vizcarra dissolved Chart 1: Peru: Banking Sector loans by type Congress and called for parliamentary elections on 26.0 (% change YoY, nominal) (1) January 26th, 2020: 22.0 Companies Consumer Mortgage Total
Slide 3: Recently announced measures give signs of the direction Peruvian government is taking
Recently announced measures give signs of the direction Peruvian government is taking III) Main measures announced by Government IV) Recent political / social events in the Region will not have a material impact on Credicorp´s Business Public investment: Special regime to reinitiate public investm
Slide 4: Overview - Credicorp's Lines of Business (LoBs)
Overview - Credicorp’s Lines of Business (LoBs) Credicorp: + Declaration of special dividend of S/8.0 per share, to be paid on November 22, 2019. Universal Banking Microfinance Stand-alone Bolivia (1) 3Q19 Contribution 76.1% 2.3% 3Q19 Contribution(1) 8.7% 0.1% FY 2018 20.3% 11.8% FY 2018 25.9% 9.1%
Slide 5: Quarterly and YTD Highlights
Quarterly and YTD Highlights Profitability Loan Portfolio Quarterly YTD Quarterly YTD QoQ YoY QoQ YoY S/ 1,093 S/ 3,292 Loan S/ 112,210 Net Income ▼-0.5% ▲+8.1% ▲+8.8% Portfolio ▲+2.6% ▲+6.8% ROAE 17.1% 17.6% NPL 4.07% ▼-90 bps ▼-90 bps ▼-40 bps ▼-4 bps ▼-8 bps 2.4% 2.4% CoR 1.79% 1.59% ROAA 0 bps 0
Slide 6: Loan growth is led by BCP's Stand-Alone Retail Banking portfolio
Loan growth is led by BCP’s Stand-Alone Retail Banking portfolio Chart 1: Loan portfolio in average daily balances Chart 2: Retail Banking segment growth (figures in S/ million) (volume growth in S/ million) + 4,941 SME-Business (+3% YoY) SME-Pyme (+10% YoY) +1.3% +5.0% Consumer loans (+13% YoY) Cre
Slide 7: Deposits drive growth in Credicorp's funding structure while wholesale funding is optimized
Deposits drive growth in Credicorp’s funding structure while wholesale funding is optimized through liability management Chart 1: Evolution of Funding Structure Chart 2: Deposits by type (S/ million - quarter-end balances) (S/ million - quarter-end balances) ▲ 12 bps ▲ 1 bps YoY QoQ ▲ 10.3% ▲ 4.1% 2
Slide 8: Cost of Risk increased mainly in BCP stand-alone retail banking
Cost of Risk increased mainly in BCP stand-alone retail banking Chart 1: NPL, IOL, IOL 90 days and Cost of Risk Evolution (1) 4.15% NPL Ratio 3.97% 4.07% 3.92% 3.65% 3.41% 3.00% 3.33% 2.76% 2.81% (2) 2.56% 3.04% Internal Overdue Loans 2.51% 2.98% (IOL) ratio 2.15% 2.08% 1.88% 1.78% Cost of Risk 1.59
Slide 9: Risk-adjusted NIM decreases 5bps YTD, given that cost of risk deteriorated more than expected
Risk-adjusted NIM decreases 5bps YTD, given that cost of risk deteriorated more than expected and margins are still being adjusted accordingly Chart 1: Net Interest Income YTD evolution (S/ Million) +7.7 Sep 19 vs Sep 18 +4.2% Set 19 vs Set 18 0.06 Chart 2: NIM and Risk-adjusted NIM evolution 0.06 0
Slide 10: Non-Financial Income includes a gain on securities while Fee income and FX net gains decelerate
Non-FinanciaI Income includes a gain on securities of 242 million soles while Fee income and FX net gains decelerates Chart 1: Evolution of non-financial income structure (S/ million) ▲ 11.5% 3,633 YTD Others (1)(2) 3,258 9.0% ▲ 15.6% ▲ 6.6% Net gain on securities 9.8% 10.0% YoY QoQ 1,271 3.8% 1,191
Slide 11: Efficiency ratio decreased due in large part to Pacifico tender win
Efficiency ratio decreased 40 basis points due in large part to the fact that Pacifico won a tender to provide D & S policies for pension funds. Efficiency ratio YTD – Sep 19 vs YTD – Sep 18 evolution by subsidiary SISCO IV (1) 60 bps 50 bps Grupo Pacifico ▲ Net earned premiums BCP Stand-alone ▲ Net
Slide 12: ROE of 17.6% is impacted by Reserve Fund and by Unrealized Gains
ROE of 17.6% is impacted by Reserve Fund and by Unrealized Gains 2019 Pro-Forma Reserve Fund (S/ million) ROAE as of Sep-19 YTD Sep-19 DPS Payout 17.6% Special Div. S/8 16% FY 2018 S/28 56% + Reserve Fund Impact YTD Sep-19 124 bps = Adj. ROAE 18.8% approx. balance Unrealized Gains (S/ million) + 1,1
Slide 13: We maintain our guidance for FY 2019
We maintain our guidance for FY 2019 2019 Revised 2019 Macroeconomic indicators FY Guidance FY Guidance Real GDP growth % ≈2.5 - 3.0% 2.5% Domestic demand real growth% ≈2.5 - 3.0% 2.8% Private investment growth % ≈1.5 - 3.5% 3.0% BCRP reference rate year-end 2.25% 2.25% Inflation % 2.2% 2.0% Exchang
Slide 14: BCP Stand-alone is making progress in its digital distribution strategy
BCP Stand-alone is making progress in its digital distribution strategy, which is focused on the customer EXperience and EFficency Chart 1: Customer satisfaction evolution Chart 3: Off-Branch transactions (2) (% of total transactions) #1 in all customer segments 92% 93% 95% 96% 41% 46% 51% 57% 50% 4
Slide 15: Yape is gaining momentum in the race to become the largest platform for small payments in Peru
Yape is gaining momentum in the race to become the largest platform for small payments in Peru Yape total users 2021 Goal Payments Ecosystem (millions of users) 10 million users 1.48 1.09 +35.5% 0.70 0.38 0.21 0.27 0.17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Today Next features… 2020 2021 1 2 3 4 5 6 Pa
Slide 16: Credicorp Strategy
Credicorp Strategy CREDICORP WAY GOVERNANCE GROWTH Best practices Lines of business Organic Growth Leverage our scale Organizational structure Inorganic growth Transformation Walter Bayly CEO Gianfranco Ferrari Alvaro Correa Deputy CEO Deputy CEO Investment Banking & Insurance & Univer
Slide 17: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This material includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical information provided herein are forward-looking and may contain information abou