Slide 1: Earnings Conference Call
Earnings Conference Call November 2022
Slide 2: Safe Harbor
Earnings Conference Call Safe Harbor This material includes “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical fact are forward-looking and m
Slide 3: Key 3Q22 Indicators and Financial Performance Reflect Progress on Strategy Execution
Earnings Conference Call Key 3Q22 Indicators and Financial Performance Reflect Progress on Strategy Execution Despite Challenging Context Core Income ROE 1 Strong Financial Results +17.5% 19.6% YoY Solid Balance Sheet Ensures CET BCP CET Mibanco 2 Continued Resilience 11.8% 16.0% Structural NPL CoR
Slide 4: BCP's Strong Focus on Customer Experience, Efficiency and Client-Centric Approach
Earnings Conference Call BCP´s Strong Focus on Customer Experience, Efficiency and Client-Centric Approach, Allows Us To Transform Plans Into Reality Our purpose Transforming Plans into Reality Cultural Transformation Values Test & Learn Customer Centricity Risk-Conscious & Righteous Collaboration G
Slide 5: Progress in Building Our Core Capabilities Drives Agility, IT Autonomy, CX and Security
Earnings Conference Call Progress in Building Our Core Capabilities Drives Increases in Agility, IT Autonomy, Improved CX and Heightened Security IT Data & Analytics Cybersecurity Expand scalability and flexibility while Increase revenue, reduce risk and Further enhancing cybersecurity through achie
Slide 6: Our Focus on Digitalization Underpins Our Strategy of Being the Primary Bank
Earnings Conference Call Our Focus on Digitalization Underpins Our Strategy of Being the Primary Bank for Our Customers 1 2 Deeper Understanding of Increased Insights into Customer Behavior Our Customers' Enables us to Adapt Our Transaction Profiles Digital Strategy… As a Result, We 4 3 …and Enhance
Slide 7: Disruptive Mindset & Strong Capabilities Drive Efficiency KPIs Across BCP's Digital Base
Earnings Conference Call Disruptive Mindset & Strong Capabilities Drive Encouraging Efficiency KPIs Across BCP´s Digital Base Improving Cost to Serve to Income Ratio Prior Methodology New Methodology as of 3Q22 Expanding Digital Individual Client Base1 Digital Digital Non-Digital Clients1 Clients2 C
Slide 8: Leveraging Digital Capabilities to Finance New SME Subsegment and Generating Efficiency
Earnings Conference Call Leveraging Digital Capabilities to Finance New SME Subsegment and Generating Efficiency Leveraging analytics and customer Enabling new SME clients with Generating Efficiency through Digital knowlegde Financing Solutions Channels Clients with Financing Solutions Working Capit
Slide 9: Yape, with Over 10 million Users, is Starting to Monetize Customers
Earnings Conference Call Yape, with Over 10 million Users, is Starting to Monetize Customers by Evolving into a SuperApp with Three Main Ambitions Be the Main Payment Network Be present in Yaperos’ Daily Lives Solve Yaperos’ Financial Needs in Peru Annual Volume Transacted (S/, billions) 43.0 Aspira
Slide 10: Key Financial Highlights 3Q22
Earnings Conference Call Key Financial Highlights 3Q22 1 2 3 4 Mixed Volume Strong Core Income: Low Cost of Risk Strengthened Profits Dynamics NII + Fees + FX and Improving Loss Ratio and Solid Capital Base Structural Loans NII Structural CoR Earnings Contribution1 +10.8% +22.5% 1.44% 75.7% Universa
Slide 11: Higher Inflation Fuels Tighter Monetary Policy with Downside Risks to Growth
Earnings Conference Call Higher Inflation Fuels Tighter Monetary Policy with Downside Risks to Growth Economic Growth in 2022 U.S. 1.6 Colombia 7.8 Peru 2.8 Chile 2.4 (YoY % change) 1 Inflation Rates Central Bank Policy Rates (% YoY as of Nov 2nd)2 (%, as of Nov 2nd)2, 3 11.25 11.00 13.7 Peru 7.00 1
Slide 12: Key Political Events and Regulatory Environment
Earnings Conference Call Key Political Events and Regulatory Environment Perú Colombia Chile The nation's prosecutor filed a constitutional New government proposals drive COP and New Constitution draft was rejected in complaint against President Castillo at sovereign bond rates to historic highs Sep
Slide 13: In Universal Banking, BCP Continued to Boost Profitability While Loan Loss Provisions Normalize
Earnings Conference Call In Universal Banking, BCP Continued to Boost Profitability While Loan Loss Provisions Normalize Earnings Contribution BCP Stand-alone 74.7% BCP’s drivers BCP Bolivia 0.9% (% change) QoQ YoY ROE1 Structural (%, Annualized) +5.5% +10.6% Loans2 23.1 NII +13.5% +31.6% 24.3% 17.8
Slide 14: In Microfinance, Mibanco Registered Profitability Gains amid Favorable NII Dynamics
Earnings Conference Call In Microfinance, Mibanco Registered Profitability Gains amid Favorable NII Dynamics and Lower Provisions Earnings Contribution Mibanco 9.6% Mibanco’s drivers Mibanco Colombia 0.4% (% change) QoQ YoY ROE1 Structural (%, Annualized) +3.8% +22.6% Loans2 19.4% 22.1% 4.8% NII +2.
Slide 15: In Insurance, Boost in Profitability Driven by the Life Business
Earnings Conference Call In Insurance, Boost in Profitability was Driven by the Life Business as Net Earned Premiums Rose and Claims Subsided Earnings Contribution Grupo Pacifico 10.5% Grupo Pacifico's drivers (% change) QoQ YoY ROE1 & COVID-19 Life Claims Net Earned (%, Annualized; S/ millions) +8.
Slide 16: IB & WM Results Continue to be Challenged; Assessing Our Business
Earnings Conference Call IB & WM Results Continue to be Challenged; We are Conduncting a Thorough Assessment of Our Business Earnings Contribution ASB & 1.9% IB & WM drivers Credicorp Capital (% change in US$) QoQ YoY ROE1 and Income by Business2 (%, S/ millions) WM -4.14% -9.54% AUMs2,4 41.6% 9.6%
Slide 17: The Impact of Asset Repricing Continued to Outpace the Effect of the Funding Cost Increase
Earnings Conference Call The Impact of Asset Repricing Continued to Outpace the Effect of the Funding Cost Increase Assets: Disciplined Pricing Approach Liabilities: Transactional Funding Base Supports Controlled Rise in Funding Costs Interest Earning Asset (IEA) Structure Funding Structure (S/ mill
Slide 18: Core Income YoY Growth was Driven Mainly by Net Interest Income
Earnings Conference Call Core Income YoY Growth was Driven Mainly by Net Interest Income NII Growth was Attributable to Higher Interest Rates and to the YoY Growth in Fee Income Driven by Cashless Adoption such as Interest Earning Assets Dynamics POS Usage and Bank to Bank Transfers Core Income, NIM
Slide 19: Volume of New Entrants to the NPL Portfolio is Offset by an Uptick in Write-offs
Earnings Conference Call Volume of New Entrants to the NPL Portfolio QoQ is Offset by an Uptick in the Volume of Write-offs QoQ Dynamics: Volume of New Entrants to the NPL Portfolio in Structural NPL Ratios Drop YoY across all Segments with the SME-Pyme was Offset by an Increase in Write-off Volumes
Slide 20: Cost of Risk Increases after Registering Unusually Low Levels in Previous Periods
Earnings Conference Call Cost of Risk Increases after Registering Unusually Low Levels in Previous Periods Structural Cost of Risk Increased QoQ Mainly Driven by Key Drivers of Loan Loss Provisions Dynamics SME-Pyme, Partially Offset by Mibanco Structural Portfolio1,2: (%) NPL Coverage SME-Pyme: Our
Slide 21: Efficiency Improved Driven by Higher Core Income in BCP and Mibanco
Earnings Conference Call Efficiency Improved Driven by Higher Core Income in BCP and Mibanco Operating Expenses Increased YoY Driven by Personnel Efficiency Ratio Reflects the Fact that Growth in Core Income expenses, IT Expenses, Transactional Costs, and Disruption Outpaced the Expansion in Expense
Slide 22: Credicorp Delivered Strong Profitability Driven by Our Four Business Lines
Earnings Conference Call Credicorp Delivered Strong Profitability Driven by Our Four Business Lines Net income and ROAE (S/ millions, %) 19.6% 18.5% 16.4% 17.0% 16.9% ROAE 14.9% 11.3% FY 2019 10.8% 10.7% 17.0% FY 2020 3.4% 1.8% 1.4% FY 2021 13.9% Net Income ROAE YTD 2022 17.7% -10.7% 4Q19 1Q20 2Q20
Slide 23: 2022 Outlook
Earnings Conference Call 2022 Outlook 3Q22 Results 9M22 Results 2022 Guidance Real GDP Growth1 +1.7% +2.9% +2.5% Structural Loan Portfolio Growth2 +10.3% +11.6% 9% - 11.0% Net Interest Margin 5.3% 4.8% 4.6% - 4.9% Cost of Risk 1.2% 1.0% 0.8 - 1.1% Efficiency Ratio 42.8% 43.9% 44.0% - 46.0% ROAE 19.6
Slide 24: 3Q22 Key Takeaways
Earnings Conference Call 1 Delivering on our 3 strategy, driving sustainability, Well-capitalized balance digitalization, and sheet supports best talent execution of strategic initiatives 2 4 Well-positioned to Delivered strong navigate current profitability driven by 3Q22 environment, driving growt
Slide 25: Earnings Conference Call
Earnings Conference Call November 2022