Slide 1: Earnings Conference Call 4Q/2021
Earnings Conference Call 4Q/2021
Slide 2: Market Backdrop, 4Q21 Performance, Outlook, Key Takeaways
<1> Market Backdrop <2> 4Q21 Performance <3> Outlook <4> Key Takeaways
Slide 3: Market Backdrop
CREDICORP <1> Market Backdrop
Slide 4: Peru's economy registered a strong rebound in 2021
Peru’s economy registered a strong rebound in 2021, and the impact of COVID-19 going forward is expected to be limited due to vaccination levels Economic Indicators Copper Price (YoY % change) (1) (US$/lb., as of February 7th) (2) 2021 vs. 2020 2021 vs. 2019 Real GDP 13 1 Non primary real GDP 15 1 C
Slide 5: Macro financial indicators show signs of lower risk
Macro financial indicators show signs of lower risk and the role of the Central Bank will be decisive Central Bank Monetary Policy Rate USDPEN (%, as of January 2022) (1) (as of February 7th) (1) Net International Reserves LA5: 10-Year Sovereign Bonds S&P rating: LT Debt (US$ billion, as of February
Slide 6: 4Q21 Performance
CREDICORP <2> 4Q21 Performance
Slide 7: Credicorp's Key Highlights for 4Q21
Credicorp’s Key Highlights for 4Q21 We are fostering financial inclusion and business growth through digitalization while we consolidate our return to profitability FY 2021 figures Financial Inclusion (# Financially included individuals) 1.3 million S/148 bn S/3,671 m Loan Core Portfolio (1) Income(
Slide 8: We continue to make headway along our Sustainability path
We continue to make headway along our Sustainability path Credicorp Selected for the MSCI upgraded Credicorp to Leader Category S&P/BVL Peru General Our upcoming 2021 Annual and Sustainability Report ESG Index will be aligned with international reporting frameworks New Milestones E S G First bank
Slide 9: Universal Banking: BCP leveraged digital capabilities
In Universal Banking, BCP leveraged digital capabilities to enable business growth and consolidated its rebound in 2021 BCP’s results were driven by… Earnings Contribution BCP Stand-Alone 84.8% (%, Annualized) BCP Bolivia 2.1% (% change) QoQ FY ROE (3) +4.5% +9.9% (%, Annualized) Core Income (1) FY
Slide 10: Our digital initiative Yape continues to make significant progress
Our digital initiative Yape continues to make significant progress Yape Users Yape Users by type (Millions) December 2021 Monthly Volume Transacted Monthly Transactions (Volume of transactions in millions) (Transactions in millions) 10
Slide 11: Microfinance: Mibanco consolidated its hybrid model
In Microfinance, Mibanco consolidated its “hybrid model” and improved commercial productivity, which boosted its recovery in 2021 Mibanco’s results were driven by… Earnings Contribution Mibanco 11% (%, Annualized) Mibanco Colombia 2% (% change) QoQ FY ROE Structural Loans (1) +5.4% +2.5% (%, Annuali
Slide 12: Insurance business continues to recover; Pension resilient
The Insurance business continues to recover as COVID-19 claims subside and premium growth accelerates; while Pension business remains resilient Grupo Pacífico’s results were driven by.. Earnings Contribution Grupo Pacifico 5.8% (%, Annualized) (% change) QoQ FY ROE & COVID-19 Life Claims Net Earned
Slide 13: IB & WM accelerated its operating transformation
In 2021, IB & WM accelerated its operating transformation while growth in Income from AM & WM was attenuated by a contraction in Capital Markets IB & WM results were driven by… Earnings Contribution ASB & Credicorp Capital 0.8% (%, Annualized) (% change) QoQ FY Income by Business (2) WM AUMs (1) +2.
Slide 14: Consolidated Performance
Consolidated Performance 14
Slide 15: Asset mix more profitable; low-cost deposits improved NII
In 2021, the asset mix became more profitable while growth in low-cost deposits fueled an improvement in NII Throughout the year, structural loan growth contributed to a Growth of 10.5% YoY in Low-cost deposits and severance indemnity more profitable IEA mix deposits withdrawals resulted in a lower-
Slide 16: Asset Quality of the Structural Portfolio
Asset Quality of the Structural Portfolio1: NPL ratio and CoR improved at the Credicorp level QoQ, but performances differed across segments At BCP, QoQ loan expansion outpaced growth in NPL volumes ; at SME-Pyme and Mibanco led the drop in provisions QoQ, while Mibanco, higher QoQ write-offs were r
Slide 17: Gradual recovery in NIM; core income topped pre-pandemic levels
The positive evolution of assets; a cost-effective funding mix; and higher interest rates drive a gradual recovery in NIM. Core income topped pre-pandemic levels. Structural origination, gradual interest rates increase, and low- NII, Fee Income and net gains on FX transactions continued to cost fund
Slide 18: The efficiency ratio improved
The efficiency ratio improved driven by growth in Income in the Microfinance and Insurance businesses and despite higher expenses at BCP Achievements of Mibanco’s Hybrid model Efficiency (%) Mibanco Operating Income and Expenses (% change YoY) % of disbursements through 2021/2020 variation alternati
Slide 19: We consolidated our recovery this year
All in all, we consolidated our recovery this year and emerged with a strengthened competitive position Net income and ROAE (S/ millions,%) FY FY FY ROAE 17.0% 1.4% 13.9% 2019 2020 2021 19
Slide 20: Outlook
CREDICORP <3> Outlook
Slide 21: Our 2022 Guidance
Our 2022 Guidance Guidance 2021 (2) FY21 Results Guidance 2022 Real GDP Growth 8% - 10% +13.0%(3) +2.5%(3) Structural Loan n.a. +2.9% 8.0% - 10.0% Portfolio Growth (1) Net Interest Margin 3.9% - 4.4% 4.1% 4.3% - 4.6% Cost of Risk 1.8% - 2.3% 0.8% 0.8% - 1.1% Efficiency Ratio 44.0% - 46.0% 45.9% 45.0
Slide 22: Key Take-aways
CREDICORP <4> Key Take-aways
Slide 23: Key Take-aways
Key Take-aways 1. We are ending a challenging two-year period, marked by a sanitary crisis and episodes of political instability. We managed the risks that arose by leveraging our strong balance sheet and took advantage of opportunities to emerge with a strengthened competitive position. 2. Politica
Slide 24: Revised innovation model at the Credicorp level
We have revised our innovation model at the Credicorp level, strengthening our capabilities to anticipate markets’ needs and constantly disrupt ourselves We will discuss our digital story and renewed innovation model in our Investor Digital Day on March 15th in New York and on March 16th in London.
Slide 25: Appendix
CREDICORP Appendix
Slide 26: Government Program Portfolio: gradual drop in loans
Government Program Portfolio: gradual drop in loans; 38% of the portfolio was reprogrammed as clients took advantage of facilities Higher amortizations in all segments, mainly driven by SMEs as As grace periods expire, portfolio deterioration has begun to client income recovers materialize Governmen
Slide 27: Credicorp's 4Q21 Consolidated Statement of Financial Position
Credicorp’s 4Q21 Consolidated Statement of Financial Position Credicorp Ltd. As of % change S/ 000 4Q20 3Q21 4Q21 QoQ YoY ASSETS Total cash and due from banks 36,752,994 44,507,856 39,320,740 -11.7% 7.0% Cash collateral, reverse repurchase agreements and securities 2,394,302 2,555,337 1,766,948 -30.
Slide 28: Credicorp's 4Q21 Consolidated Statement of Income
Credicorp’s 4Q21 Consolidated Statement of Income Credicorp Ltd. Quarter % change Year % change S/ 000 4Q20 3Q21 4Q21 QoQ YoY 2020 2021 2021 / 2020 Net interest, similar income and expenses 2,068,560 2,451,708 2,477,847 1.1% 19.8% 8,571,342 9,361,980 9.2% Provision for credit losses on loan portfoli
Slide 29: 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 charge (related to the government f
Slide 30: Earnings Conference Call
Earnings Conference Call 4Q/2021