Slide 1: Earnings Conference Call 2Q/2021
Earnings Conference Call 2Q/2021
Slide 2: Market Backdrop, 2Q21 Performance, Outlook, Key Takeaways
<1> Market Backdrop <2> 2Q21 Performance <3> Outlook <4> Key Takeaways
Slide 3: Market Backdrop
CREDICORP <1> Market Backdrop
Slide 4: Economic recovery in Peru progresses alongside improved sanitary situation and vaccination
Economic recovery in Peru progresses alongside an improvement in the sanitary situation and an uptick in vaccination Copper Price Economic Indicators (US$/lb., as of August 11th) (2) (% change) (1) 1H21 vs 1H20 1H21 vs 1H19 GDP 20.3 -0.5 Non Primary GDP 22.6 -0.2 Construction 97.0 15.6 Commerce & Se
Slide 5: Political uncertainty in Peru has hurt financial indicators; macro fundamentals remain solid
Political uncertainty in Peru has generated a negative impact on financial indicators; in contrast, our macro fundamentals and financial system remain solid Net International Reserves Financial Indicators (% of GDP, latest data available) (1) Indicators 31-Dec-19 Worst in 2020 31-Dec-20 11-Aug-21 US
Slide 6: In a context of political instability uncertainties and regulatory risks rise
In a context of political instability uncertainties and regulatory risks rise Current Political context Examples of state intervention • Non-technical cabinet • Uncertainty around Monetary Policy • Banco de la Nacion / Agrobanco more active Headwinds Banking • New / amendment of government reprogram
Slide 7: 2Q21 Performance
CREDICORP <2> 2Q21 Performance
Slide 8: Credicorp's Key Financial Highlights for 2Q21
Credicorp’s Key Financial Highlights for 2Q21 We continue edging back to pre-pandemic profitability, bolstered by recovery in core income and a decrease in the cost of risk, which were offset by an increase in life insurance losses. S/143 bn S/2,309 m 1.02% Loan Net Interest Cost of Portfolio (1) In
Slide 9: Universal Banking: BCP Stand-alone drives the recovery
Universal Banking: BCP Stand-alone drives the recovery BCP Stand-Alone’s 2Q21 ROAE is already Earnings Contribution BCP Stand-Alone 104% topped 18% driven by…. (%, Annualized) BCP Bolivia 2% QoQ YTD ROE Contribution (2) (% change) (% change) (%, Annualized) Structural Loans +3.6% -5.3% Core Income (
Slide 10: Microfinance is recovering at a slower pace
Microfinance is recovering at a slower pace, but the trend is similar to that seen for Universal Banking Earnings Contribution Mibanco Peru 8% Mibanco Peru QoQ recovers mainly through … (%, Annualized) Mibanco Colombia 1% QoQ YTD ROE Contribution (2) (% change) (% change) (%, Annualized) Structural
Slide 11: Insurance and Pensions: Pacifico life continues to feel COVID-19 impact
Insurance and Pensions: Pacifico life continues to feel the impact of COVID- 19 and regulatory challenges remain on the Pension front Life and P&C business claims increase but the situation Pensions AuMs are impacted by new laws allowing in life business improves after a peak in mortality in April w
Slide 12: IB & WM: AuMs migrated off-shore, higher transactional activity boosted fees
IB & WM: AuMs migrated to off-shore platforms, while higher transactional activity boosted fees in a context of political uncertainty Asset Management registered outflows mainly of Peruvian The increase in income was mainly driven by strong results in funds, while Wealth Management managed local fun
Slide 13: Consolidated Performance
Consolidated Performance 13
Slide 14: Structural loans resume growth while funding structure improves
Structural loans resume growth while the funding structure improves The loan portfolio grew 4.4% in ending balances and 2.2% in average daily A more efficient funding structure and a drop in interest rates led balances, mainly driven by structural loans at Wholesale banking and, to a the funding cos
Slide 15: Loan payments remained strong in the Structural portfolio
Loan payments remained strong in the Structural portfolio, while 14% of the GP portfolio was reprogrammed by quarter-end Strong performance of on-time loan payments as the New government reprogramming facilities were launched, economy recovers; the number of reprogrammed loans primarily for Retail a
Slide 16: Structural NPLs and CoR improved in most segments
Structural NPLs and CoR improved in most segments, where positive payment behaviors and higher loans led ratios to drop The NPL for Wholesale Banking remained stable but dropped All subsidiaries posted lower provisions as risk models registered in Retail Banking driven by Individuals. Mibanco’s port
Slide 17: Structural NIM begins to recover; Core Income approaches pre-pandemic levels
Structural NIM begins to recover, bolstered by a more profitable asset mix and a lower-cost funding structure, while Core Income approaches pre-pandemic levels NII, Fee Income and income for FX transactions accelerated QoQ; Structural origination, investment term adjustment and lower cost of nonethe
Slide 18: Insurance underwriting results: loss ratio deteriorated in Life Business
Insurance underwriting results: the loss ratio deteriorated in the Life Business due to increased mortality and in P&C, due to an upswing in economic activity Net earned premiums approach pre-pandemic levels but are offset COVID-19 Life claims were impacted by an increase in mortality, by an increas
Slide 19: The efficiency ratio improved YTD
The efficiency ratio improved YTD, driven by growth in Core Income and Insurance Premiums Improvements were attributable to structural loan origination; a lower-cost Credicorp Operating Income and Expenses funding structure at Mibanco; and growth in premiums at Pacifico, which (% change YoY) won two
Slide 20: We maintain a highly liquid position and an adequate capital base
We maintain a highly liquid position and an adequate capital base BCP Stand-Alone and Mibanco maintain ample liquidity CET1 Levels remain within internal targets BCP Stand-Alone BCP Stand-Alone CET1 (%) (%) Mibanco(1) Mibanco CET1⁽²⁾ (%) (%) 1. Mibanco’s LCR in dollars has maintained above 100% for
Slide 21: We continue to push forward in our transformation journey at BCP
We continue to push forward in our transformation journey at BCP We are improving time to market and operating stability, Client Satisfaction evolution without losing sight of cyber risks (T2B, %) 52% 51% 1H21 YoY 47% 46% 51% New software releases + 113% 43% 42%42% 44% 41% 45% 44% 41% 34% 37% 35% Do
Slide 22: Credicorp's fintech initiatives have strong potential
Credicorp´s fintech initiatives have strong potential, here are some examples… (Metrics as of June 2021) # 1 (1) # 2 (2) + 6.6 million users + 1 million financially included Started 2019 Started 2019 + 27 million monthly + 537 thousand users transactions + 293 thousand users 68% carried out by SMEs
Slide 23: 2021 Progress in our Sustainability Journey
2021 Progress in our Sustainability Journey Recent Milestones 2021 Priorities • Carbon Emissions Corporate Taskforce • Responsible Investing E • ESG Risk Mgmt Framework Corporate Taskforce MINAM • Commercial & Investment Banking products • Launched Eco-factoring line (Pilot): $648k Financial +1 mill
Slide 24: Outlook
CREDICORP <3> Outlook
Slide 25: We are at a transitional point in our quest to resume profitability
We are at a transitional point in our quest to resume profitability; in the longer term, uncertainties remain Guidance 2021 (2) YTD Results (3) Outlook 2021(4) Real GDP Growth 8% - 10% +20.0%(5) 8% - 10% Loan Growth (1) 4% - 8% +12.8% lower end of guidance impacted by Reactiva expirations and uncert
Slide 26: Key Take-aways
CREDICORP <4> Key Take-aways
Slide 27: Key Take-aways
Key Take-aways 1. Economic reactivation continued in 2Q21, alongside an improvement in the sanitary situation and an uptick in the vaccination process. Peru’s macro fundamentals and the financial system remain solid, while political instability has triggered a deterioration in financial indicators,
Slide 28: Appendix
CREDICORP 5. Appendix
Slide 29: Credicorp's Consolidated Statement of Financial Position
Credicorp's 2Q20 Consolidated Statement of Financial Position 29
Slide 30: Credicorp's Consolidated Statement of Income
Credicorp's 2Q20 Consolidated Statement of Income 30
Slide 31: 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 / amorti
Slide 32: Earnings Conference Call 2Q/2021
Earnings Conference Call 2Q/2021