Slide 1: Earnings Conference Call 3Q/2021
Earnings Conference Call 3Q/2021
Slide 2: Market Backdrop, 3Q21 Performance, Outlook, Key Takeaways
<1> Market Backdrop <2> 3Q21 Performance <3> Outlook <4> Key Takeaways
Slide 3: Market Backdrop
CREDICORP <1> Market Backdrop
Slide 4: Peru's economic activity surpassed pre-pandemic levels amid improvement in sanitary situation
Peru’s economic activity surpassed pre-pandemic levels amid improvement in the sanitary situation Economic Indicators Copper Price (YoY % change) (1) (US$/lb., as of November 3rd) (2) 3Q21 vs 3Q20 3Q21 vs 3Q19 GDP 11.2 1.5 Non primary GDP 14.6 3.9 Construction 26.9 21.3 Commerce & Services 12.8 1.7
Slide 5: Key macro financial indicators have begun to register less volatility
In the Peruvian context, key macro financial indicators have begun to register less volatility... USDPEN Net International Reserves Central Bank Monetary Policy Rate (US$ million, as of October 28th) (1) (%, as of October 2021) (1) (as of November 3rd) (1) PEN Sovereign 10-year bond Sovereign Bonds
Slide 6: 3Q21 Performance
CREDICORP <2> 3Q21 Performance
Slide 7: Credicorp's Key Highlights for 3Q21
Credicorp’s Key Highlights for 3Q21 We are fostering financial inclusion and business growth through digitalization, while we recover profitability across the board Figures for 9M 21 Financial Inclusion (#Financially included individuals) 785 thousand S/147 bn S/3,567 m Loan Core Portfolio (1) Incom
Slide 8: Universal Banking registered a strong rebound
Universal Banking registered a strong rebound, as BCP accelerated its transformation investments Earnings Contribution BCP Stand-Alone 82.6% BCP Stand-Alone’s profitability is driven by… (%) BCP Bolivia 2.0% QoQ 9m YoY ROE (3) (%, Annualized) (% change) (% change) Structural Loans (1) +8.5% -0.8% Co
Slide 9: Microfinance continues on the path to recovery
Microfinance continues on the path to recovery as business activity picks up and the “hybrid model” begins to pay off Earnings Contribution Mibanco Peru 7% Mibanco Peru recovers mainly through … (%) Mibanco Colombia 1% QoQ 9m YoY ROE (3) (%, Annualized) (% change) (% change) Structural Loans(1) +1.9
Slide 10: Results in Insurance boosted by lower claims in Life business
Results in Insurance boosted by lower claims in the Life business as the sanitary situation improves, while Pension business fees remain resilient Earnings attributable to lower claims in Life business and Covid-19 claims decreased significantly due to IBNR2 premium growth across lines releases as m
Slide 11: IB & WM: Income dropped QoQ
IB & WM: Income dropped QoQ mainly affected by the Capital Markets and Asset Management businesses due to lower traded volumes and AUM outflows, respectively AUMs contraction in US$ was mainly driven by the Asset The drop in income was mainly driven by the Capital Markets Management business, while
Slide 12: Consolidated Performance
Consolidated Performance 12
Slide 13: Asset mix gradually becomes more profitable; funding cost benefited
Asset mix gradually becomes more profitable, and the funding cost benefited from growth in low-cost deposits Structural loan growth and gradual repayments of GP loans improve The drop in funding from government loans was offset by an IEA mix and boost yield recovery uptick in low-cost deposits. The
Slide 14: Asset Quality of the Structural Portfolio: NPLs and CoR improved
Asset Quality of the Structural Portfolio(1): NPLs and CoR improved in all segments, where positive payment behaviors and loan growth led ratios to drop Strong on-time payment ratios and structural loan evolution Provisions continued to drop, particularly at BCP, while drove positive NPL results all
Slide 15: NIMs gradually recover; Core Income above pre-pandemic levels
NIMs gradually recover, bolstered by a more profitable asset mix and a low-cost funding structure, while Core Income is above pre-pandemic levels Structural origination, gradual interest rate increased, and low-cost NII, Fee Income and income for FX transactions continued to funding structure booste
Slide 16: The efficiency ratio improved
The efficiency ratio improved driven by growth in Income in the Banking and Insurance businesses and expenses control at Mibanco Efficiency improvements were attributable to all businesses except for BCP, Mibanco Operating Income and Expenses (% change YoY) which accelerated spending related to its
Slide 17: 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 Evolution of Satisfaction in the Consumer Segment without losing sight of cyber risks (T2B, %) 9M21 YoY New software releases + 87% Downtime of key channels - 50% FFIEC (1) Cybers
Slide 18: Yape usage grows exponentially and offers ample opportunities
Yape usage grows exponentially and offers ample opportunities… Partnership development May- 18 Sep-19 Ene-20 Mar-20 May-20 Aug-20 Mar-21 May-21 Aug-21 2017 Oct18 Feb-20 Jun-20 Nov-20 Jun-21 2022 Teleton donations Yape’s QR COVID-19 donations Government Relaunched #Yomesumo bonuses payments Users by
Slide 19: Developing disruptive initiatives and a fintech ecosystem strategy
We have been developing disruptive initiatives through different subsidiaries and are now articulating a fintech ecosystem strategy at the Credicorp level Scaled within incumbent Pipeline New disruptive initiatives to scale Feb 2017 Dec 19 May 20 Sep 20 2022-23 Mar 18 Jul 19 Dec 19 Rethinking the st
Slide 20: ESG update and investor feedback on our ESG Journey
We have recently disclosed an ESG update and have received valuable feedback from investors regarding our ESG Journey New Milestones E S G Declared group-wide commitment to Hybrid model “Junyi” for S/0-5k microfinance clients Included gender diversity guidelines for the Board achieving carbon
Slide 21: Outlook
CREDICORP <3> Outlook
Slide 22: We expect our profitability recovery trend to continue in the short-term
We expect our profitability recovery trend to continue in the short-term; while in the longer term, uncertainties remain Guidance 2021 (2) YTD Results (3) Outlook 2021(4) Real GDP Evolution 8% - 10% +17.4%(5) around 12% Loan Evolution (1) 4% - 8% +11.4% above guidance, due to FX impact and structura
Slide 23: Key Take-aways
CREDICORP <4> Key Take-aways
Slide 24: Key Take-aways
Key Take-aways 1. Economic reactivation continued in 3Q21, 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 a more moderate tone from the Executive Branch bolstered Peruvian financial m
Slide 25: Appendix
CREDICORP Appendix
Slide 26: Government Program Portfolio: gradual drop in loans
Government Program Portfolio: gradual drop in loans; 32% of the portfolio was reprogrammed as clients took advantage of facilities An increase in amortization of Middle-Market and SME-Business Portfolio asset quality will be fully evident by 1H22 as loans drove a drop in total loans as client income
Slide 27: Consolidated Statement of Financial Position
Credicorp's 3Q20 Consolidated Statement of Financial Position Credicorp Ltd. As of % change S/ 000 Sep 20 Jun 21 Sep 21 QoQ YoY ASSETS Total cash and due from banks 35,137,959 37,958,638 44,507,856 17.3% 26.7% Cash collateral, reverse repurchase agreements and 2,821,116 1,616,654 2,564,764 58.6% -9.
Slide 28: Consolidated Statement of Income
Credicorp's 3Q20 Consolidated Statement of Income Credicorp Ltd. Quarter % change YTD % change S/ 000 3Q20 2Q21 3Q21 QoQ YoY Sep 20 Sep 21 2021 / 2020 Net interest, similar income and expenses 2,161,905 2,309,042 2,451,708 6.2% 13.4% 6,502,782 6,884,133 5.9% Provision for credit losses on loan portf
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 3Q/2021