Slide 1: Earnings Conference Call 4Q/2020
Earnings Conference Call 4Q/2020
Slide 2: Market Backdrop, 4Q20 Results, Outlook, Key Takeaways
<1> Market Backdrop <2> 4Q20 Results <3> Outlook <4> Key Takeaways
Slide 3: Market Backdrop
CREDICORP <1> Market Backdrop
Slide 4: Economic Reactivation in Peru Continues
Economic Reactivation in Peru Continues Seasonally-adjusted GDP Payroll payments through the banking sector Price of Copper (4Q19 = 100) (1) (% change y/y) (2) (USD/lb., as of February 8th) (3) 100 97 69 4Q08 4Q11 4Q14 4Q17 4Q20 We expect GDP to rebound between 8% and 10% in 2021, underpinned by hig
Slide 5: Sanitary situation and political landscape continue to be factors of uncertainty
Sanitary situation and political landscape continue to be factors of uncertainty Excess mortality in Peru Peru: if general elections were to be held tomorrow and the following (7-day average, as of February 6th) (1) candidates were on the ballot, who would you vote for? (%, surveyed during January 1
Slide 6: The Peruvian Financial System Evolves in Line with Economic Recovery
The Peruvian Financial System Evolves in Line with Economic Recovery Loans to the private sector in December 2020 Loans to the private sector (% change YoY) (1) (%change YoY, December 2020) (1) 37.4 W/o Reactiva W/ Reactiva 12.3 22.6 12.3 9.9 4.1 3.8 3.4 3.3 -4.9 -3.1 -4.6 -6.0 -5.5 Colombia* Bolivi
Slide 7: Economic Reactivation was also Evident at Credicorp in 4Q20
Economic Reactivation was also Evident at Credicorp in 4Q20 while Use of digital channels continued to accelerate Demand for retail products continued to recover in 4Q20. Mortgage origination accelerated the Digital transactions accelerated most this quarter and digital sales grew in almost all prod
Slide 8: 4Q20 Results
CREDICORP <2> 4Q20 Results
Slide 9: Credicorp's Key Financial Highlights for 4Q20
Credicorp’s Key Financial Highlights for 4Q20 We have absorbed the majority of the impact generated by COVID-19 in 2020 and are on the road to recovery. S/138 bn S/2,069 m 2.13% Loan Net Interest Cost of Portfolio (1) Income Risk -5.7% FY +270 bps FY 1.1 QoQ +19.1% YoY -4.3% QoQ -12.5% YoY -171 bps
Slide 10: Universal Banking
CREDIC a BCP3> RP 2BCP>
Slide 11: BCP's Full-Year Loan Growth was Driven by Reactiva and the Funding Mix improved
BCP´s Full-Year Loan Growth was Driven by Reactiva and the Funding Mix improved Figures in S/ millions ADB Loan Growth was mainly driven by Reactiva while the Improvement in the Funding Structure due to a favorable structural portfolio grew slightly in Corporate Clients and variation in Deposit mix
Slide 12: BCP Retail Banking's On-time Payments for Loans Due Improved
BCP Retail Banking´s On-time Payments for Loans Due Improved and the “High Uncertainty Portfolio” Decreased Materially Figures in S/ millions Payments on Structural Loans Due (1) On-time Payments continue to improve “High uncertainty portfolio” contracts from 18% in September to 9% in December Struc
Slide 13: Provisions Dropped while Asset Quality Deteriorated after Grace Periods Expired
Economic Reactivation and Better-than-Expected Client Payment Behavior led Provisions to Drop while Asset Quality Deteriorated after Grace Periods Expired Figures in S/ millions SME-Pyme provisions drove a QoQ drop, while provisions for Structural Portfolio quality deteriorates, mainly driven by Ind
Slide 14: As Sources of Income Continued to Recover…
As Sources of Income Continued to Recover… Figures in S/ millions NIM and Risk-Adjusted NIM (%) NIM was impacted by (i) Structural NIM decrease: Lower interest rates Loans/Investment Portfolio mix Funding Structure optimization (ii) Reactiva / Structural loan portfolio mix Sources of Income NFI reco
Slide 15: … and Expenses are Controlled, FY Efficiency remained stable in 2020
… and Expenses are Controlled, FY Efficiency remained stable in 2020 Operating Expenses contracted year over year on a faster pace than Income, mainly due to variable costs control While BCP progressed in its journey to optimize Efficiency Efficiency and Operating Leverage (Quarterly) Efficiency dri
Slide 16: Microfinance
—_ are ‘ Pe de | LO . Be | mibanco Banc \
Slide 17: Mibanco's ADB Loan Portfolio was Driven by GP Loans in 2020
Mibanco´s ADB Loan Portfolio was Driven by GP Loans in 2020, while Structural Portfolio Ending Balances Contracted Figures in S/ millions Loan Portfolio (Average daily balances) ▲ Structural Portfolio: 6% in quarter-end balances GP Loans (1) 2020 ADB Loan growth mainly driven by Reactiva Structural
Slide 18: Positive Trends Continued in Mibanco's On-time Payments for Loans Due
Positive Trends Continued in Mibanco´s On-time Payments for Loans Due and in the Performance of the Reprogrammed Portfolio Figures in S/ millions Payments on Structural Loans Due (1) On-time payments for loans due have improved materially; fewer new reprogramming facilities were granted; and overdue
Slide 19: Mibanco's Provisions Contracted, while Delinquency Increased as Expected
Mibanco's Provisions Contracted, while Delinquency Increased as Expected Figures in S/ millions QoQ provisions were down, impacted by the Asset Quality Ratios (%) following: NPL Coverage 139% 206% 178% Model fine-tuning as trends in client’s payment behavior were better than expected Delinquency sta
Slide 20: Mibanco's NIM Impacted by Different Factors, while Expense Control Reduced the Bottom Line Impact
Mibanco´s NIM Impacted by Different Factors, while Expense Control Measures Reduced the Bottom Line Impact Figures in percentages NIM and Risk-Adjusted NIM Accumulated NIM was impacted by: (i) Reduced structural portfolio / influence of GP loans (ii) Structural NIM decrease: (1) Structural disbursem
Slide 21: Insurance & Pension Funds
Insurance & Pension Funds
Slide 22: Insurance Results were impacted by Higher Claims in the Life Business
Insurance Results were impacted this Year due to Higher Claims in the Life Business and IBNR provisions related to COVID-19 Figures in S/ millions A decrease in claims in the P&C business was offset by Higher Levels of COVID-19 claims and provisions, although lower than Claims and IBNR provisions in
Slide 23: In Pensions, Lower Fees were partially offset by Higher Reserve Fund Profitability
In Pensions, Lower Fees were partially offset by an Increase in Reserve Fund Profitability this Quarter, while on a Full Year basis both items Decreased Figures in S/ millions Total AuMs of the Private Pension Fund System decreased Earnings recovered this quarter boosted by the YoY due to withdrawal
Slide 24: Investment Banking & Wealth Management
Investment Banking & Wealth Management
Slide 25: IB & WM Year-end AuM's recovered from COVID-19's impact
IB & WM Year-end AuM’s recovered from COVID-19’s impact in 1Q20, while Profit Contribution to Credicorp contracted 8.8% Figures in S/ millions Lower contribution is attributable to higher AuMs increased QoQ, fully bridging the gap produced by recurring expenses, amid investments in transforming the
Slide 26: Consolidated Performance
Consolidated Performance 26
Slide 27: Credicorp's 2020 Asset Growth was Driven by GP Loans and Investments
Credicorp´s 2020 Asset Growth was Driven by GP Loans and Investments, while the Funding Mix Improved due to Liquidity Measures Figures in S/ millions The evolution of Interest Earning Assets (IEA) was mainly driven by GP Loans and by an increase in investment activity IEAs Structure Loan Portfolio (
Slide 28: Full-Year Structural Cost of Risk Rose, while NIM contracted 109 bps
Full-Year Structural Cost of Risk Rose, while NIM contracted 109 bps Figures in percentages Cost of Risk Evolution FY2019 FY2020 Provisions continued to follow a downward trend, while FY Structural asset quality ratios deteriorated as grace periods expired 1.60% 5.07% 8.41% Cost of Risk 7.66% 2020 N
Slide 29: Efficiency is Impacted by Lower Income, while Capital Ratios Remain Strong
Efficiency is Impacted by Lower Income, while Capital Ratios Remain Strong Figures in S/ millions Full-year Efficiency deteriorated due to lower income and non-recurring CET1 Levels remain above our internal targets events in different LOBs Efficiency (%) BCP Stand-Alone CET1 Mibanco CET1 Mibanco CE
Slide 30: Adjusted ROAE Improved QoQ to 12.0%
Adjusted ROAE Improved QoQ to 12.0% Figures in S/ millions Quarterly Adjusted Net Income FY2020 ROAE 3.5% 1.4% Quarterly ROAE 1.8% 12.0% 10.8% (2) (3) (4) (1) (1) 3Q20 Adjustetd Net Income: Adjusted for zero-interest-rate loan impairments in BCP and Mibanco, one-off interest (2) Non-Recurring NII: r
Slide 31: Outlook
CREDICORP <3> Outlook
Slide 32: 2021 will be a Transition Year toward a Recovery in Profitability
In a Context where Uncertainties Remain, we Foresee that 2021 will be a Transition Year as we move toward a Recovery in Profitability, which assumes no more Strict Lockdowns will be imposed 2019 2020 Guidance 2021 Real GDP Growth 2.2% -11.3% 8% - 10% 6.7% 16.4% 4% - 8% Loan Growth (1) Net Interest M
Slide 33: Key Take-aways
CREDICORP <4> Key Take-aways
Slide 34: Key Take-aways
Key Take-aways 1. Economic reactivation continues, although sanitary and political uncertainties remain. We continue to closely monitor developments on the sanitary crisis and regulatory fronts. 2. Client payments, demand for loans in the Individuals segment and digital adoption continue to improve.
Slide 35: Appendix
CREDICORP 5. Appendix
Slide 36: Non-Recurring Events 4Q20 and FY 2020
Non-Recurring Events 4Q20 and FY 2020 Figures in S/ millions Non-Recurring Events (Before taxes) 4Q20 FY 2020 Universal Banking BCP Zero-interest-rate loans Impairment 26.3 (95.6) BCP's Bonds Exchange - (108.3) BCB Zero-interest-rate loans Impairment (148.0) (148.0) Microfinance Mibanco/Bancompartir
Slide 37: Glossary
Glossary Loan Portfolio related to Reactiva Peru and FAE-Mype programs to respond quickly Government Program Loans (“GP or GP loans”) and effectively to liquidity needs and maintain the payment chain. Structural Loans Loan Portfolio excluding GP Loans Impairment or IFRS9 modification loss / amortiz
Slide 38: Earnings Conference Call 4Q/2020
Earnings Conference Call 4Q/2020