Banco De Credito Del Peru Sa · BVL:CREDITC1
Banco De Credito Del Peru Sa — Debt Investor Presentation (November 2022)
34 slides from Banco De Credito Del Peru Sa's debt investor presentation, November 2022
Slide 1: Fixed Income Presentation Third Quarter 2022
Fixed Income Presentation Third Quarter 2022
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by Banco de Crédito del Perú (“BCP”) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment or other advice. No representatio
Slide 3: Macro and Market Backdrop
Macro and Market Backdrop
Slide 4: Brief Macroeconomic Outlook
Brief Macroeconomic Outlook Peru’s Economic activity keep showing a growing trend Peru: Real GDP by sectors Copper Price (% change) (1) (USD/lb., as of Nov 7th) (2) 3Q22 vs 3Q21 3Q22 vs 3Q19 GDP 1.7 3.8 3.59 Non Primary GDP 2.5 5.6 We expect GDP to grow around 2.5% in 2022 2.09 Nov-16 Nov-12 Nov-13
Slide 5: Higher Inflation Fuels Tighter Monetary Policy
Higher Inflation Fuels Tighter Monetary Policy Inflation Rate Central Bank Monetary Policy Rate (% Yoy, as of October 2022) (2) (%, as of November 2022) (2) 8.28 7.25 2.25 0.25 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Oct-21 Oct-22 Aug-21 Mar-21 Dec-19 May-20 Oct-20 Jun-22 Jan-22 Nov-22 USDPEN Net
Slide 6: Macroeconomic Outlook - LatAm
Macroeconomic Outlook - LatAm Peru will remain amongst the most dynamic economies of the region… GDP Growth forecasts 2023-2025 Inflation forecasts 2023-2025 (% change, average) (1) (% change, average) (1) 3.1 66.9 2.7 2.5 2.5 2.1 1.8 1.6 1.3 1.3 6.8 4.5 4.0 4.0 3.8 3.1 2.9 1.8 Peru Peru Argentina A
Slide 7: BCP Overview
BCP Overview Some of the accounting practices used by BCP are aligned with Peruvian GAAP and as such, may, in certain aspects, significantly differ from generally accepted accounting principles in other countries (including IFRS, which is the accounting standard used to prepare Credicorp’s consolida
Slide 8: Undisputable Leader in the Peruvian Financial System
Undisputable Leader in the Peruvian Financial System #1 in Direct Loans(1) Financial Highlights Market Share (%) (PEN Billion) 2011 2021 Others 24.6% #1 29.8% Gross Loans 45.7 134.7 3x Interbank 10.6% 3.4% Total Assets 72.1 197.8 3x 13.9% 17.6% Scotiabank BBVA Total Deposits 48.0 132.2 3x #1 in Depo
Slide 9: Our Purpose: Transforming Plans into Reality
Our Purpose: Transforming Plans into Reality Experience Efficiency Enablers Most Efficient Agile and Tech & Data- The Best Reconnection Bank with New Income The Best effective with societies driven Experience digital Sources Team operating Organization approach model Remaining Deepening our Lead in
Slide 10: Progress in Building Our Core Capabilities
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 achieving operational cost sav
Slide 11: Our Focus on Digitalization Underpins Our Strategy
Our Focus on Digitalization Underpins Our Strategy of Being the Primary Bank for Our Customers Increased Insights into Deeper Understanding of Our Customers' Customer Behavior Transaction Profiles Enables us to Adapt Our Digital Strategy… As a Result, We …and Enhance the Right Strengthen Customer Va
Slide 12: Disruptive Mindset & Strong Capabilities Drive Improvement Across BCP's Digital Base
Disruptive Mindset & Strong Capabilities Drive Improvement Across BCP´s Digital Base Expanding Digital Individual Client Base(1) Experience & Efficiency 10.0 9.0 8.0 7.0 6.0 MM 53% Sales through digital channels(4) 6.0 Increased 5.0 Digital 0.9 MM Adoption 62% Digital monetary transactions(5) 4.0 3.
Slide 13: Yape, with Over 10 million Users, Evolving into a SuperApp
Yape, with Over 10 million Users, is by Evolving into a SuperApp with Three Main Ambitions Be the Main Payment Be Present in Yaperos’ Daily Lives Solve Yapers’ Financial Needs Network in Perú Annual Volume Transacted (S/, billions) Aspirations 43.0 SMEs 150 billion by 2024 Individuals 25.7 7.2 0.9 2
Slide 14: Progress in our sustainability journey
In 2022 - Sep we made an important progress in our sustainability journey Reconecta is BCP's main sustainability plan, aligned with Credicorp’s ESG strategy To create a more sustainable and inclusive economy To improve financial health of people To empower our people to thrive Boosting SME’s Financi
Slide 15: 3Q 2022 Results
2Q 2022 - Results
Slide 16: BCP 3Q 2022 Highlights
BCP 3Q 2022 Highlights ✓ Loan portfolio increased QoQ and YoY PEN 138.4 billion PEN 2.7 billion driven by upticks in Wholesale Banking, Loan Portfolio Net Interest Income Consumer and Mortgage, and offset by amortizations of GP loans. +0.3% QoQ +3.8% YoY +11.3% QoQ +31.3% YoY ✓ Net interest
Slide 17: Balance Sheet Snapshot
Balance Sheet Snapshot Total Assets (S/ million, %) Loans by Economic Sector – 2Q22(2) Cash and due from banks Structural Loans Investments Others Dollarization: Agriculture, 2% Others (3), 10% GP Loans (1) 42% Fishing, 1% Electricity, Gas and Water, 4% 201,122 198,028 Consumer, 25% -1.5% YoY 191,
Slide 18: Loan Portfolio in Avg. Daily Balances
Loan Portfolio in Avg. Daily Balances Evolution (S/ Millions) GP (1) Wholesale Banking Retail Banking Mibanco +3.5% 133,979 134,754 138,684 132,543 132,016 13,328 21,893 19,734 18,067 15,767 52,574 56,155 52,164 51,267 51,046 50,552 51,492 54,099 56,419 49,493 10,429 10,989 11,411 12,314 12,782 3Q21
Slide 19: Deposits in Avg. Daily Balances
Deposits in Avg. Daily Balances Evolution (S/ Millions) Saving deposits Time deposits Demand deposits Severance indemnity deposits (CTS) +0.4% 122,312 118,320 117,007 122,852 116,126 48,809 48,823 50,432 49,424 50,750 53,725 50,854 47,492 48,571 46,836 14,955 14,215 14,472 15,351 21,152 4,823 4,428
Slide 20: Asset Quality
Asset Quality Cost of Risk & Provisions (%, S/ million) Delinquency Ratios(1) (%) Provision expense Recoveries Cost of Risk NPL Ratio NPL Coverage Ratio 1.56% 1.22% 1.31% 126 112 105 5.42 5.58 5.25 539 406 454 500 617 533 -94 -77 -78 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 Non-Performing Loans by Segment (%)
Slide 21: Capital Management
Capital Management(1) BCP at Basel II (Regulatory Capital) (%) BCP at Basel III (%) 15.79% 15.23% 15.16% 14.94% 14.93% 11.84% 11.63% + additional 11.52% 10.74% 10.25% 10.00% 9.94% 9.94% requeriments 11.33% 10.0% 11.10% Internal BIS Regulatory Minimum Minimum 11% 8.0% 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q
Slide 22: Financial Performance
Financial Performance Net Income & ROAE (S/ million,%) Net Interest Income & Margin (S/ million,%) +52.3% YoY +31.1% YoY 6.21% 6.35% 6.68% 7.06% +26.9% QoQ 22.15% 24.35% +11.3% QoQ 5.87% 20.83% 20.02% 17.67% 1,288 5.11% 5.63% 4.18% 4.39% 4.63% 1,119 1,036 1,015 846 2,671 2,221 2,401 2,038 2,
Slide 23: Appendix
Appendix
Slide 24: Strategic Framework
Strategic Framework Strong Focus on Customer Experience, Efficiency and Client-Centric Approach, Allows Us To Transform Plans Into Reality 36% Source: BCP 30
Slide 25: Selected Financial Information: Income Statement
Selected Financial Information Income Statement Summary (PEN in millions) 3Q21 2Q22 3Q22 QoQ Growth YoY Growth Financial income 2,476 2,986 3,466 16.1% 40.0% Financial expense -437 -585 -795 35.9% 81.9% Gross financial margin 2,038 2,401 2,671 11.2% 31.1% Provision for loan losses -406 -539 -454 -15
Slide 26: Selected Financial Information: Balance Sheet
Selected Financial Information Balance Sheet Summary (PEN in millions) 3Q21 2Q22 3Q22 QoQ Growth YoY Growth Cash and due from banks and interbank funds 41,104 28,045 34,247 22.1% -16.7% Investments at fair value through profit or loss and available- 27,193 25,645 26,072 1.7% -4.1% for-sale investmen
Slide 27: Governance
Governance Governance structure Board independence General Shareholder’s Meeting 5 Board of Directors Independent Dependent 8 Chairman Luis Enrique Romero Vice - Chairman Raimundo Morales Dasso* Board of directors tenure Directors Roque Benavides Ganoza* Antonio Abruña Puyol* Alexandre Vartuli Gouvê
Slide 28: Experienced Management Team
Experienced Management Team General Manager (CEO) ▪ Joined BCP in 1994 Diego Cavero ▪ MBA from the University of Texas Francesca Raffo Luis Alfonso Reynaldo Llosa César Ríos Deputy CEO Retail Carrera Banking Karim Mitre ▪ Previously Calderon Transformation Chief Risk Officer Planning and Finance Hea
Slide 29: Top Tier Credit Ratings
Top Tier Credit Ratings Local Credit Rating Agencies International Credit Rating Agencies BCP AAI Moody’s Local BCP Fitch S&P Moody´s (1) Date of last review Sep-22 Sep-22 Date of last review Oct-22 Apr-22 Sep-22 Institution A+ A+ Outlook Negative Stable Stable Issuer rating BBB BBB Baa1 Long Term D
Slide 30: BCP Corporate Bonds and subordinated debt
BCP Corporate Bonds and subordinated debt Breakdown of international bonds Issued Amount Outstanding Coupon Bond Issue date Due date Tenure (years) Currency Original Currency Amount Original rate (000) Currency (000) Subordinated 01/07/2020 01/07/2025(1) 10(1) USD 850,000 850,000 3.13% Subordinated
Slide 31: Credicorp's Lines of Business
Credicorp’s Lines of Business Source: Credicorp as of May 2022 41
Slide 32: Client Segmentation
Client Segmentation Business Group Client Income/Sales/Total debt Annual sales higher than $100 million Corporate Wholesale Banking (equivalent to S/399 million) Group (WBG) (1) Annual sales from $10 million to $100 million Middle-Market (equivalent to S/40 million to S/399 million) Individual month
Slide 33: Table of Calculations
Table of Calculations Profitability Net interest margin (NIM) Annualized net interest income/ Average* interest earning assets Annualized [ Interest on loans–(Interest expense x (Average* total loans Net interest margin on loans (NIM on loans) a/.Average interest earning assets)) ] / Average total l
Slide 34: Contacts
Contacts Head of Treasury Division Head of ALM Pablo Hurtado Rocio Benavides Banco de Crédito BCP Banco de Crédito BCP Calle Centenario 156 Calle Centenario 156 La Molina, Lima - 12, PERU La Molina, Lima - 12, PERU Phone: (+511) 313-2500 Phone: (+511) 313-2168 E-mail: pablohurtadoa@bcp.com.pe E-mail
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