Credicorp Ltd. 4Q23 and FY23 Earnings Release [Operating and Financial Highlights](index=3&type=section&id=Operating%20and%20Financial%20Highlights) Credicorp maintained resilient profitability in 4Q23 and FY23, with a 15.8% FY23 ROE, despite a S/250 million El Niño provision, while Yape achieved strong user growth and is on track for 2024 breakeven 4Q23 and FY23 Key Financial Metrics | Metric | 4Q23 | FY23 | 3Q23 | 4Q22 | FY22 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Income (Attributable, S/ millions)** | 841.8 | 4,866 | 1,238.2 | 1,010.2 | 4,648 | | **Return on Equity (ROE)** | 10.6% | 15.8% | 16.2% | 14.4% | 16.8% | | **Net Interest Margin (NIM)** | 6.21% | 6.01% | 6.11% | 5.75% | 5.09% | | **Risk-Adjusted NIM** | 4.10% | 4.38% | 4.45% | 4.45% | 4.29% | | **Structural NPL Ratio** | 5.6% | - | 5.53% (implied) | - | - | | **Structural NPL Coverage** | 102.4% | - | - | - | - | | **Cost of Risk** | 3.2% | 2.5% | 2.5% | 2.0% | 1.2% | - A significant provision of approximately **S/250 million** was set aside for the El Niño Phenomenon (FEN) in 4Q23, impacting profitability metrics for the quarter[5](index=5&type=chunk)[8](index=8&type=chunk) - Yape, the company's digital wallet, reached **11 million monthly active users (MAU)** with revenue per MAU increasing by **34.5% QoQ**. It is expected to achieve cashflow break-even in **2024**[10](index=10&type=chunk) - Capital adequacy remains strong, with BCP's IFRS CET1 Ratio at **13.2%** and Mibanco's at **18.4%**, both exceeding their internal targets of **11%** and **15%** respectively[10](index=10&type=chunk) [Senior Management Quotes](index=5&type=section&id=Senior%20Management%20Quotes) Senior management expressed confidence in Credicorp's resilience, highlighting portfolio diversity, digital capabilities, and prudent risk management, while anticipating improved macroeconomic conditions and Yape's 2024 breakeven - **CEO's Outlook:** Anticipates improved macroeconomic conditions in **2024**, driven by a waning El Niño, lower interest rates, and controlled inflation. Yape is expected to reach breakeven in **2024**[12](index=12&type=chunk) - **CFO's Performance Summary:** Acknowledged that 4Q23 results were impacted by provisions for El Niño and a goodwill impairment for Mibanco Colombia. However, favorable balance sheet dynamics led to a higher NIM, driven by retail loan growth and an increase in low-cost deposits[13](index=13&type=chunk) [Summary of Financial Performance and Outlook](index=7&type=section&id=Summary%20of%20Financial%20Performance%20and%20Outlook) Credicorp's FY23 net income grew 4.7% to S/4,866 million with a 15.8% ROE, driven by Universal Banking and Insurance, and projects a 17.0% ROE for 2024 - **2024 Outlook:** Credicorp expects to close **2024** with an ROE of around **17.0%**, driven by a resilient NIM, a reduction in the cost of risk, and economic reactivation boosting loan and fee growth[39](index=39&type=chunk) 4Q23 Net Income Contribution by Subsidiary (S/ millions) | Subsidiary | Net Income Contribution | ROE | | :--- | :--- | :--- | | BCP (stand-alone) | 811.4 | 17.9% | | Grupo Pacifico | 134.5 | 43.8% (ex-goodwill) | | Mibanco | 52.7 | 7.3% | | Credicorp Capital | 28.0 | 14.0% | | Prima AFP | 40.4 | 33.7% | | BCP Bolivia | 19.7 | 8.8% | | ASB Bank Corp | 21.6 | 11.9% | | Mibanco Colombia | (64.1) | - | | Others & Eliminations | (282.5) | - | - **Segment Performance FY23:** - **Universal Banking (BCP):** Increased profitability driven by higher Net Interest Income - **Microfinance (Mibanco):** Decreased profitability due to a substantial increase in provisions - **Insurance (Grupo Pacífico):** Extraordinarily high results due to positive dynamics in the Life business - **Investment Management & Advisory:** Benefitted from improved market performance and cost control[34](index=34&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) Financial Overview [Credicorp Ltd. Financials](index=12&type=section&id=Credicorp%20Ltd%2E%20Financials) Credicorp's 4Q23 net income was S/841.8 million (10.6% ROE), while FY23 net income grew 4.7% to S/4,865.5 million (15.8% ROE), with improved efficiency Credicorp Ltd. Financial Summary (S/ thousands) | Metric | 4Q23 | 3Q23 | 4Q22 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net interest income (S/ thousands)** | 3,347,684 | 3,254,043 | 3,140,404 | 12,937,972 | 11,091,618 | | **Net profit attributable (S/ thousands)** | 841,827 | 1,238,173 | 1,010,155 | 4,865,540 | 4,647,818 | | **Total loans (S/ thousands)** | 144,976,051 | 145,129,260 | 148,626,374 | 144,976,051 | 148,626,374 | | **Total deposits (S/ thousands)** | 147,704,994 | 148,471,535 | 147,020,787 | 147,704,994 | 147,020,787 | | **Net equity (S/ thousands)** | 32,460,004 | 31,267,592 | 29,003,644 | 32,460,004 | 29,003,644 | | **ROE** | 10.6% | 16.2% | 14.4% | 15.8% | 16.8% | | **NPL ratio** | 5.9% | 6.0% | 5.4% | 5.9% | 5.4% | | **Cost of risk** | 3.2% | 2.5% | 2.0% | 2.5% | 1.2% | | **Efficiency ratio** | 49.0% | 46.3% | 49.5% | 46.1% | 47.5% | Credicorp's Strategy Update [Disruptive Initiatives: Yape](index=14&type=section&id=Disruptive%20Initiatives%3A%20Yape) Yape achieved significant user and transaction growth in 2023, reaching 10.7 million MAU and over 1 billion transactions, and is on track for 2024 breakeven Yape Key Performance Indicators | Metric | 4Q23 | 3Q23 | 4Q22 | | :--- | :--- | :--- | :--- | | **Users (millions)** | 14.2 | 13.4 | 11.9 | | **Monthly Active Users (MAU, millions)** | 10.7 | 9.8 | 7.9 | | **Fee Income Generating MAU (millions)** | 7.9 | 6.5 | 3.4 | | ** Monthly Transactions (millions)** | 378.3 | 285.8 | 162.5 | | **TPV (S/ millions)** | 137.8 | 90.7 | 66.2 | | **Monthly Revenues / MAU (S/)** | 3.9 | 2.9 | 1.8 | | **Microloans Disbursements (thousands)** | 290.5 | 219.8 | 105.7 | - Yape is on a clear path to profitability, with a target to reach breakeven in **2024**. At the end of 2023, **73%** of active users were engaged in transactions that generate income for Yape[43](index=43&type=chunk) [Integrating Sustainability in Our Businesses](index=16&type=section&id=Integrating%20Sustainability%20in%20Our%20Businesses) Credicorp advanced its sustainability program in 4Q23, publishing its first TCFD report, significantly increasing green financing to US$585.8 million, and expanding financial inclusion - **Environmental:** Published its first TCFD report. BCP approved 59 green transactions for **US$585.8 million** by 4Q23, nearly doubling the amount from 3Q23[45](index=45&type=chunk) - **Social:** Expanded financial inclusion, reaching **4.1 million** people through BCP since 2020. Extensive financial education programs were conducted, training over **614,000** people through BCP's online courses and over **272,000** clients through Mibanco's digital guidance program in 2023[46](index=46&type=chunk)[47](index=47&type=chunk) Analysis of 4Q23 Consolidated Results [Loans and Portfolio Quality](index=17&type=section&id=01%20Loans%20and%20Portfolio%20Quality) Structural loans grew 0.4% QoQ in 4Q23, driven by BCP Retail Banking, while the structural NPL ratio increased to 5.6% due to portfolio deterioration Structural Loans Growth (Average Daily Balances, S/ millions) | Metric | Dec 23 | Sep 23 | Dec 22 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Structural Loans** | 138,348 | 137,745 | 137,934 | +0.4% | +0.3% | | BCP Stand-alone | 112,644 | 111,857 | 112,566 | +0.7% | +0.1% | | Mibanco | 13,102 | 13,642 | 13,121 | -4.0% | -0.1% | Structural Portfolio Quality (Quarter-end Balance) | Metric | 4Q23 | 3Q23 | 4Q22 | | :--- | :--- | :--- | :--- | | **Structural NPLs (S/ thousands)** | 7,966,571 | 7,832,083 | 6,889,993 | | **Structural NPL Ratio** | 5.6% | 5.6% | 5.0% | | **Structural NPL Coverage Ratio** | 102.4% | 101.4% | 112.2% | - Loan growth was led by BCP's Retail Banking, particularly SME-Pyme and Mortgages. This was offset by contractions in Corporate Banking due to low private investment and at Mibanco due to tighter credit policies[49](index=49&type=chunk)[51](index=51&type=chunk) - The increase in the Structural NPL ratio was driven by deterioration in older SME-Pyme vintages, consumer/credit card loans overdue more than 120 days, and high-ticket loans at Mibanco[56](index=56&type=chunk)[59](index=59&type=chunk) [Deposits](index=24&type=section&id=02%20Deposits) Credicorp's total deposits decreased slightly by 0.5% QoQ to S/147.7 billion, with a favorable shift to low-cost deposits, which now comprise 68.1% of the total base Deposit Composition (S/ thousands) | Deposit Type | Dec 23 | Sep 23 | Dec 22 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Deposits (S/ thousands)** | 147,704,994 | 148,471,535 | 147,020,787 | -0.5% | +0.5% | | Demand deposits (S/ thousands) | 48,229,322 | 45,120,127 | 48,467,247 | +6.9% | -0.5% | | Saving deposits (S/ thousands) | 52,375,813 | 49,395,543 | 54,769,045 | +6.0% | -4.4% | | Time deposits (S/ thousands) | 42,484,664 | 49,213,763 | 38,897,010 | -13.7% | +9.2% | - There was a notable shift from higher-cost Time Deposits to lower-cost Demand and Savings deposits during 4Q23, improving the funding mix[66](index=66&type=chunk) - Low-cost deposits (Demand + Savings) recovered to represent **68.1%** of the total deposit base, up **445 bps QoQ**. Credicorp leads the Peruvian market with a **41.6%** share in this category[68](index=68&type=chunk)[84](index=84&type=chunk) [Interest Earning Assets and Funding](index=27&type=section&id=03%20Interest%20Earning%20Assets%20and%20Funding) Interest Earning Assets grew 0.7% QoQ to S/224.3 billion, driven by investments, while total funding decreased 0.5% QoQ to S/184.7 billion due to reduced BCRP instruments IEA and Funding Composition (S/ thousands) | Category | Dec 23 | Sep 23 | QoQ Change | | :--- | :--- | :--- | :--- | | **Total Interest Earning Assets (S/ thousands)** | 224,336,482 | 222,667,631 | +0.7% | | - Total investments (S/ thousands) | 52,215,528 | 51,116,913 | +2.1% | | - Total loans (S/ thousands) | 144,976,051 | 145,129,260 | -0.1% | | **Total Funding (S/ thousands)** | 184,746,887 | 185,617,598 | -0.5% | | - Deposits and obligations (S/ thousands) | 147,704,994 | 148,471,535 | -0.5% | | - BCRP instruments (S/ thousands) | 7,461,674 | 9,616,150 | -22.4% | | - Due to banks and correspondents (S/ thousands) | 12,278,681 | 10,493,411 | +17.0% | [Net Interest Income (NII)](index=28&type=section&id=04%20Net%20Interest%20Income%20%28NII%29) Net Interest Income rose 2.9% QoQ to S/3,348 million, expanding NIM to 6.21%, but Risk-Adjusted NIM fell to 4.10% due to El Niño provisions NII and Margin Performance | Metric | 4Q23 | 3Q23 | 4Q22 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income (S/ thousands)** | 3,347,684 | 3,254,043 | 3,140,404 | 12,937,972 | 11,091,618 | | **Net Interest Margin (NIM)** | 6.21% | 6.11% | 5.75% | 6.01% | 5.09% | | **Risk-Adjusted NIM** | 4.10% | 4.45% | 4.45% | 4.38% | 4.29% | | **Cost of Funds** | 3.03% | 3.15% | 2.35% | 2.91% | 1.83% | - The QoQ increase in NIM was driven by a stable yield on interest-earning assets (**8.72%**) while the cost of funding fell by **12 bps** to **3.03%**, thanks to a recovery in low-cost deposits[90](index=90&type=chunk)[92](index=92&type=chunk) - Risk-adjusted NIM dropped significantly QoQ to **4.10%**, with provisions for the El Niño Phenomenon (FEN) accounting for a **45 bps** negative impact[92](index=92&type=chunk) [Provisions](index=32&type=section&id=05%20Provisions) Provisions for loan losses significantly increased in 4Q23, primarily due to a S/250 million charge for El Niño, raising the Cost of Risk to 3.2% for the quarter - A key driver for the quarter's provisions was an additional charge of approximately **S/250 million** for expected losses from the El Niño Phenomenon (FEN)[97](index=97&type=chunk)[98](index=98&type=chunk) Provisions and Cost of Risk (CoR) | Metric | 4Q23 | 3Q23 | 4Q22 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Provision for credit losses, net (S/ thousands)** | (1,173,454) | (917,642) | (730,681) | (3,622,345) | (1,811,538) | | **Cost of Risk (Total Portfolio)** | 3.2% | 2.5% | 2.0% | 2.5% | 1.2% | | **Structural Cost of Risk** | 3.3% | 2.6% | 2.1% | 2.5% | 1.3% | - Excluding the FEN impact, the QoQ rise in provisions was driven by a base effect in Wholesale Banking and deterioration in SME-Pyme, partially offset by reversals in Mortgages and lower provisions at Mibanco[98](index=98&type=chunk) [Other Income](index=34&type=section&id=06%20Other%20Income) Other Core Income rose 2.1% QoQ, driven by FX gains and fees, while Other Non-Core Income grew 29.6% QoQ due to higher net gains on securities Other Income Breakdown (S/ thousands) | Category | 4Q23 | 3Q23 | 4Q22 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Other Core Income (S/ thousands)** | 1,204,220 | 1,184,575 | 1,188,510 | +1.7% | +1.3% | | - Fee income (S/ thousands) | 986,173 | 975,955 | 895,295 | +1.0% | +10.2% | | - Net gain on FX (S/ thousands) | 218,047 | 208,620 | 293,215 | +4.5% | -25.6% | | **Total Other Non-Core Income (S/ thousands)** | 282,603 | 218,028 | 139,352 | +29.6% | +102.8% | | - Net gain on securities (S/ thousands) | 115,825 | 53,591 | 77,513 | +116.1% | +49.4% | - BCP Bolivia's adjusted fee structure for foreign transfers significantly impacted fee income and FX gains. Excluding this, core income still grew **2.1% QoQ**[107](index=107&type=chunk) [Insurance Underwriting Results](index=37&type=section&id=07%20Insurance%20Underwriting%20Results) Insurance Underwriting Result fell 13.2% QoQ to S/287.3 million due to higher claims in P&C and Life, despite a 43.9% full-year increase Insurance Underwriting Result by Segment (S/ millions) | Segment | 4Q23 | 3Q23 | 4Q22 | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Underwriting Result** | 287.3 | 330.9 | 136.8 | -13.2% | +110.0% | | P&C | 49.3 | 84.2 | 62.4 | -41.4% | -20.9% | | Life | 215.2 | 226.6 | 61.1 | -5.0% | +252.3% | | Crediseguros | 16.5 | 15.0 | 11.4 | +10.2% | +44.9% | - **P&C Insurance:** The QoQ decline was caused by a **26.4%** increase in expenses for insurance services, stemming from higher claims in P&C Risks and Medical Assistance[117](index=117&type=chunk) - **Life Insurance:** The full-year result grew **75.0% YTD**, driven by higher income from D&S (Disability & Survivorship) and Credit Life, coupled with lower claims compared to COVID-19 affected periods[118](index=118&type=chunk) [Operating Expenses](index=39&type=section&id=08%20Operating%20Expenses) Operating expenses grew 9.8% in FY23 to S/8,781 million, primarily driven by disruptive initiatives and BCP's core business, with a 5.6% growth excluding disruption - Operating expenses rose **9.8% YTD**. Growth was driven by disruptive initiatives (**47.2%** of total growth) and BCP's core business (**35.4%** of total growth)[123](index=123&type=chunk) - Expenses for disruptive initiatives (Yape, Tenpo, etc.) grew **66.6% YTD**, representing **10.6%** of total expenses in 2023[123](index=123&type=chunk) - Excluding expenses for disruption, YTD growth in operating expenses was **5.6%**[120](index=120&type=chunk)[121](index=121&type=chunk) [Operating Efficiency](index=41&type=section&id=09%20Operating%20Efficiency) Credicorp's efficiency ratio improved by 142 basis points to 46.1% in 2023, driven by operating income growth outpacing expense growth, primarily at BCP Efficiency Ratio by Subsidiary (YTD) | Subsidiary | 2023 | 2022 | Change (bps) | | :--- | :--- | :--- | :--- | | **Credicorp** | **46.1%** | **47.5%** | **-142** | | BCP | 38.8% | 40.7% | -190 | | Mibanco Perú | 52.7% | 51.3% | +140 | | Pacífico | 26.5% | 34.3% | -780 | - The efficiency ratio improved to **46.1%** in 2023 from **47.5%** in 2022. This was due to operating income growing faster than operating expenses[30](index=30&type=chunk)[125](index=125&type=chunk) [Regulatory Capital](index=42&type=section&id=10%20Regulatory%20Capital) Credicorp maintained a strong capital position in 4Q23, with BCP's CET1 ratio at 13.20% and Mibanco's at 18.37%, both exceeding internal targets IFRS CET1 Capital Ratios (4Q23) | Entity | IFRS CET1 Ratio | Internal Target | | :--- | :--- | :--- | | BCP Stand-alone | 13.20% | 11.0% | | Mibanco | 18.37% | 15.0% | - BCP's Global Capital ratio was **17.46%**, well above the regulatory minimum of **12.59%**[129](index=129&type=chunk) - Mibanco's Global Capital ratio was **20.56%**, significantly higher than the regulatory minimum of **12.81%**[131](index=131&type=chunk) [Economic Outlook](index=44&type=section&id=11%20Economic%20Outlook) Peru's economy contracted 0.5% in 2023 but is projected to rebound with 2.5% GDP growth in 2024, as inflation decelerates and the BCRP eases rates Peru: Economic Forecast | Indicator | 2022 | 2023 (e) | 2024 (f) | | :--- | :--- | :--- | :--- | | **Real GDP (% change)** | 2.7% | (0.5)% | 2.5% | | **Inflation, end of period** | 8.5% | 3.2% | 2.2% | | **Reference Rate, end of period** | 7.5% | 6.8% | 4.8% | | **Exchange rate, end of period** | 3.8 | 3.7 | 3.8 | | **Fiscal balance (% GDP)** | (1.6)% | (2.8)% | (2.5)% | - GDP fell **0.5%** in 2023, the worst performance since **1998** (excluding the pandemic), but is forecast to rebound to **2.5%** growth in 2024[137](index=137&type=chunk)[133](index=133&type=chunk) - Inflation slowed significantly from **8.5%** at end-2022 to **3.2%** at end-2023. The BCRP began a rate-cutting cycle, reducing the policy rate by a cumulative **75 bps** in 4Q23[140](index=140&type=chunk) Appendix [Implementation of IFRS 17](index=50&type=section&id=12%2E1%2E%20Implementation%20of%20IFRS%2017) IFRS 17 implementation, effective January 2023, standardizes insurance accounting, reclassifying P&L items and requiring restatement of 2022 figures for comparability - IFRS 17 was implemented to standardize accounting for insurance contracts, improving transparency and comparability. The impact on Credicorp's net income is **not material**[5](index=5&type=chunk)[150](index=150&type=chunk) - The new standard required the reformulation of key financial indicators, including Net Interest Margin (NIM), Funding Cost, and the Efficiency Ratio, to properly segregate insurance-related financial components. **2022** figures were restated for comparability[157](index=157&type=chunk)[161](index=161&type=chunk)[164](index=164&type=chunk) [Loan Portfolio Quality Details](index=55&type=section&id=12%2E3%2E%20Loan%20Portfolio%20Quality) This section provides detailed tables on loan portfolio quality, including Government Program loans with a 15.74% IOL ratio and 21.1% coverage, supporting the main analysis Government Program (GP) Loan Portfolio Quality (4Q23) | Metric | 4Q23 | 3Q23 | | :--- | :--- | :--- | | **GP Total loans (S/ thousands)** | 3,595,503 | 4,179,770 | | **GP IOL ratio** | 15.74% | 19.79% | | **GP Coverage ratio of IOLs** | 21.1% | 13.8% | - This section provides granular, supplementary data tables on loan portfolio quality, including breakdowns by business segment, currency, and for government programs, supporting the analysis in the main report[168](index=168&type=chunk) [Regulatory Capital Details](index=61&type=section&id=12%2E5%2E%20Regulatory%20Capital) This section provides detailed calculations and breakdowns of regulatory capital for Credicorp, BCP, and Mibanco, including Tier 1, Tier 2, and RWAs - Provides detailed tables breaking down the calculation of regulatory capital, risk-weighted assets, and capital adequacy ratios for Credicorp, BCP, and Mibanco, supporting the main capital analysis[187](index=187&type=chunk)[190](index=190&type=chunk)[193](index=193&type=chunk) [Financial Statements and Ratios by Business](index=65&type=section&id=12%2E6%2E%20Financial%20Statements%20and%20Ratios%20by%20Business) This section provides comprehensive financial statements and key indicators for Credicorp's main business segments, enabling deep-dive analysis of each subsidiary's performance - This appendix contains full financial statements and key performance indicators for each major business unit, including BCP, Mibanco, Grupo Pacifico, and Prima AFP, allowing for detailed segmental analysis[199](index=199&type=chunk)[205](index=205&type=chunk)[225](index=225&type=chunk)

Financial Performance Highlights - Credicorp delivered resilient full-year results despite a challenging year, with a Return on Equity (ROE) of 15.8%[9] - Net Interest Income increased by 16.6% compared to 2022[9] - The Risk-Adjusted Net Interest Margin (NIM) stood at 4.38%, supported by a funding advantage[9] - The Common Equity Tier 1 (CET1) ratio under IFRS was 13.2%[9] - The efficiency ratio was 46.1%, and the company financially included 4.1 million people[9] Business Segment Performance - Universal Banking contributed 78.5% to the full-year 2023 earnings[17] - Insurance & Pensions contributed 17.1% to the full-year 2023 earnings[17] - Investment Management & Advisory contributed 3.1% to the full-year 2023 earnings[17] - Microfinance contributed 1.3% to the full-year 2023 earnings[17] Digital Initiatives - Mobile Banking Net Promoter Score (NPS) increased by 80% year-over-year[11] - Digital clients increased by 12 percentage points year-over-year, reaching 67.6%[11] - Yape has nearly 11 million active users[35] Outlook and Guidance - The company expects an improvement in macroeconomic conditions in 2024, with a Gross Domestic Product (GDP) growth estimate of 2.5%[9] - The reference rate as of February 2024 was 6.25%[9] - The company projects a real GDP growth of around 2.5% for 2024[79]

Credicorp Ltd. (NYSE:BAP) Q4 2023 Earnings Conference Call February 9, 2024 9:30 AM ET Company Participants Milagros Ciguenas – Investor Relations Gianfranco Ferrari – Chief Executive Officer Cesar Rios – Chief Financial Officer Reynaldo Llosa – Chief Risk Officer Carlos Otello – Chief Financial Officer-Mibank Conference Call Participants Ernesto Gabilondo – Bank of America Olavo Arthuzo – UBS Sergey Dubin – HL Carlos Gomez – HSBC Beatriz Abreu – Goldman Sachs Yuri Fernandes – JPMorgan Andres Soto – Santand ...

When it comes to understanding the potential movement of stocks, the relative strength index (RSI) is a valuable tool. It is a momentum indicator measuring price changes, giving valuable insights as it oscillates from 0 to 100. Readings over 70 indicate an asset is overbought and below 30 oversold. Typically, these points mark high and low points for a given asset.However, an interesting opportunity lies in the mid-point of the RSI. A reading of 50 represents where an asset may transition towards overbought ...

Group 1 - Sandy Spring Bancorp, Inc. (SASR) has seen a 12.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Sandy Spring Bancorp has a dividend yield of 5.3%, significantly higher than the industry average of 2.9% [1] - Flushing Financial Corporation (FFIC) has experienced a 1.2% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Flushing Financial Corporation has a dividend yield of 5.1%, compared to the industry average of 3.2% [1] - Credicorp Ltd. (BAP) has seen a 2% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] Group 2 - The Zacks Rank 1 company mentioned has a dividend yield of 4.5%, which is above the industry average of 4.1% [2]

Lima, Jan. 26, 2024 (GLOBE NEWSWIRE) -- Lima, PERU, January 26th, 2024 – Credicorp Ltd. announces to its shareholders and the market that its 4Q23 Earnings Release Report will be released on Thursday, February 8th, 2024, after market close. Credicorp’s Webcast / Conference Call to discuss such results; will be held on Friday, February 9th, 2024, at 9:30 a.m. ET (9:30 a.m. Lima, Peru time). The call will be hosted by Gianfranco Ferrari – Chief Executive Officer, Cesar Rios - Chief Financial Officer, Frances ...

Lima, Jan. 26, 2024 (GLOBE NEWSWIRE) -- Lima, PERU, January 26th, 2024 – Credicorp Ltd. announces to its shareholders and the market that its 4Q23 Earnings Release Report will be released on Thursday, February 8th, 2024, after market close. Credicorp's Webcast / Conference Call to discuss such results; will be held on Friday, February 9th, 2024, at 9:30 a.m. ET (9:30 a.m. Lima, Peru time). The call will be hosted by Gianfranco Ferrari – Chief Executive Officer, Cesar Rios - Chief Financial Officer, Frances ...

Lima, Jan. 18, 2024 (GLOBE NEWSWIRE) -- Lima, PERU, January 18th, 2024 -- Credicorp (NYSE:BAP) announces that in accordance with its corporate disclosure policies and to prevent any leaks of financial results and ensure fairness, the Company will start the quiet period for 4Q23's earnings release on January 25th. This period will end on the date of the release, February 8th. During the quiet period, the Company will not disclose any financial information, comment on financial results, or respond to related ...

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Financial Performance - Net income attributable to Credicorp declined 6.4% YoY to S/1,238 million, resulting in a ROE of 16.2% compared to 19.8% in 3Q22[6] - In Q3 2023, net earnings attributable to Credicorp totaled S/1,238 million, reflecting a decrease of 11.6% QoQ and 6.4% YoY[25] - Net profit for 3Q23 was S/1,354,764, a decrease of 11.6% QoQ and 6.7% YoY, while net profit attributable to Credicorp was S/1,322,909, also down by 11.6% QoQ and 6.4% YoY[34] - The company reported a net gain from associates increased by 35.3% QoQ and 24.2% YoY, reaching S/32,056 in 3Q23[104] - The net gain from foreign exchange transactions was S/262,167, which is a 1.1% decrease quarter-over-quarter and a 20.4% decrease year-over-year[198] Loan and Deposit Trends - Total loans increased by 1.6% QoQ to S/151,392,202 but decreased by 4.1% YoY, while deposits and obligations rose by 3.5% QoQ to S/152,792,014, reflecting a 2.8% YoY decline[34] - Total deposits increased 3.5% QoQ, primarily driven by time and demand deposits, while YoY deposits declined 2.8% due to a shift towards time deposits in a high-interest rate environment[6] - The Loan/Deposit (L/D) ratio dropped by 150 bps at BCP and 890 bps at Mibanco QoQ, reflecting an increase in total deposits[66] - Total structural loans increased to S/ 111,857 million in September 2023, reflecting a 1.0% QoQ growth and a 0.6% YoY increase[45] - The dollarization level of total deposits decreased by 30 bps QoQ to 48.9%, remaining below the average of the last two years[64] Interest Income and Margin - Net Interest Income (NII) grew 1.6% QoQ to S/3,254 million, with a YoY increase of 12.9%, supported by a shift towards retail loans[16] - The net interest margin for 3Q23 was 5.33%, down 11 bps QoQ and 78 bps YoY, while the risk-adjusted net interest margin was 4.51%, a decrease of 11 bps QoQ and 6 bps YoY[34] - The net interest margin (NIM) stood at 6.11% at the end of 3Q23, reflecting a growth of 9 bps QoQ[75] - Interest income from loans reached S/ 4,819,101, a 20.8% increase compared to Q3 2022[185] - The yield on IEAs increased to 8.73%, up 29 bps from the previous quarter, driven by a higher proportion of investments in government securities[76] Provisions and Risk Management - Provisions increased 13.8% QoQ and 85.0% YoY, with a cost of risk rising to 2.5%[6] - The Structural NPL ratio increased 29 bps QoQ and 64 bps YoY to 5.6%, influenced by high inflation and interest rates affecting client payment performance[6] - The allowance for loan losses increased by 1.5% QoQ to S/7,942.82 million, reflecting a proactive approach to managing credit risk[52] - The structural coverage ratio of NPLs decreased to 101.4%, down 626 bps QoQ, indicating a reduction in the buffer against potential loan losses[52] - The most affected segments for provisions included Consumer Loans and Credit Cards, particularly among vulnerable sub-segments, with a notable uptick in provisions for Mortgage loans due to higher expected losses[91] Operational Efficiency - The efficiency ratio improved by 160 bps in 9M23 to 45.1%, reflecting operating income growth at BCP and Pacífico[8] - The efficiency ratio for 3Q23 was 45.5%, an increase of 170 bps QoQ, suggesting a rise in operating efficiency[34] - Operating expenses rose 11.0% YTD, primarily driven by BCP's core businesses and disruptive initiatives at Credicorp[24] - The efficiency ratio improved to 39.2% in 3Q23, up from 37.3% in 2Q23, driven by growth in core income at BCP and an increase in the Insurance Underwriting Result at Pacifico[120] - Administrative and general expenses grew by 13.8% YTD, primarily due to increased IT expenses and marketing efforts[115] Economic Environment - Peru's economic performance is weaker than expected, leading to a revised outlook for the business and increased provisions for expected losses[32] - The Peruvian economy contracted by 0.9% YoY in 3Q23, marking its third consecutive quarterly decline, with non-primary sectors falling by 1.6%[133] - Annual inflation rate in Peru is expected to close at 4.0% by the end of 2023, down from 8.5% in 2022[130] - The "El Niño Costero" phenomenon reached a "Strong" intensity in 3Q23, significantly impacting the fishing, agricultural, and primary manufacturing sectors, which reported their worst performance in over two decades[134] - The expectation of the "El Niño Costero" continuing until 1Q24 has led to increased caution among agents regarding private consumption and investment decisions[134] Technology and Innovation - Yape, the leading payment network in Peru, is on track to reach cashflow break-even in 2024, with revenue per monthly active user increasing 26% QoQ to S/2.9[8] - Digital monetary transactions increased to 76% in 3Q23, with a transactional cost per unit of 0.07, reflecting improved efficiency in operations[37] - The mobile banking rating for iOS remained stable at 4.7, while the Android rating decreased to 4.2, indicating a need for improvement in user experience on Android platforms[37] - Yape reached 13.4 million users in Q3 2023, with 9.8 million (73%) being monthly active users (MAU) who made transactions[39] - The company launched a new exchange rate functionality in September 2023, with over 12,000 transactions completed by quarter-end[39] Insurance Performance - The Insurance Underwriting Result increased by 11.6% QoQ and 8.9% YoY, mainly due to improvements in the Life Business[20] - Year-to-date, the insurance underwriting result rose by 31.1%, driven by a 10.3% increase in income from insurance services[107] - The insurance underwriting result for Life increased by 15.1% QoQ, driven by improved income from insurance services[107] - Income from insurance services decreased by 0.9% QoQ, attributed to reduced sales in Individual Life and lower premium levels in Pensions[112] - Loss on reinsurance increased by 23.1% YoY, indicating higher recoveries on reinsurance claims[112]