Financial Data and Key Indicators Changes - Credicorp's net income for Q1 2021 totaled PEN 651 million, representing a 215.8% year-over-year increase, reflecting prior provisions set aside during the pandemic [12][13] - Return on equity for the quarter was 10.6%, driven by a decrease in provisions and improved asset quality [13] - Net interest income grew by 2.6%, with a net interest margin (NIM) remaining flat at 3.73% [13][32] Business Line Data and Key Indicators Changes - BCP Stand-Alone contributed PEN 725 million in earnings with an 18.4% return on equity, while Mibanco's earnings contribution was PEN 14 million with a 2.7% return on equity [15][18] - Pacifico's life insurance business reported losses of PEN 96 million due to increased COVID-19 claims [21] - Investment Banking and Wealth Management reported earnings of PEN 37 million, close to pre-pandemic levels [15] Market Data and Key Indicators Changes - Peru's GDP is estimated to have grown around 4% year-over-year in Q1 2021, marking the first positive growth in five quarters [9] - Loan growth in March 2021 stood at 9.4% year-over-year, driven by Reactiva loans, but total loans declined 7% year-over-year when excluding Reactiva loans [10][11] - The Peruvian Sol depreciated to a record low amid political uncertainty, while copper prices reached a peak of $4.43, supporting GDP recovery expectations [10] Company Strategy and Development Direction and Industry Competition - Credicorp is focusing on digital transformation and enhancing financial inclusion, particularly through a hybrid business model at Mibanco [39] - The company is navigating political uncertainties and regulatory changes, including interest rate caps and pension fund withdrawals, which may impact financial inclusion [42][46] - Credicorp aims to maintain a strong liquidity position and adapt to changing market conditions while managing risks associated with political volatility [66] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing challenges posed by the pandemic and political landscape, emphasizing the need for consensus in the new executive branch [6][8] - The company expects GDP growth in Peru to be between 8% and 10% for 2021, with loan growth anticipated to be at the lower end of guidance due to weak dynamics [41] - Management expressed confidence in the recovery of asset quality and cost of risk, projecting continued improvement in these areas [41] Other Important Information - Credicorp's efficiency ratio was reported at 44%, with an adjusted ratio of 43.06% after excluding certain charges [36] - The company published its first sustainability report, outlining its commitment to long-term value creation and alignment with the United Nations Sustainable Development Goals [40] Q&A Session Summary Question: What are the risks for the financial sector if Castillo is elected president? - Management indicated uncertainty regarding the specific impacts on the financial sector, as there are no clear details in the economic program [52] Question: Will the cost of risk remain at the lower end of guidance? - Management confirmed that the portfolio performance has been better than expected, suggesting the cost of risk may remain on the lower side of guidance [54] Question: What is the outlook for Mibanco's return on equity? - Management expressed confidence that Mibanco could return to a 20% return on equity in the future, although this year the target is high single digits due to the impact of lockdowns [60] Question: How is Credicorp preparing for political uncertainty? - Management is managing FX positions and preparing for various scenarios, emphasizing their experience in navigating uncertainty [66] Question: What is the potential impact of the interest rate caps? - Management noted that the caps could significantly affect financial inclusion, with estimates suggesting over one million people may be excluded from financial services [71]

PART I [Key Information](index=14&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section outlines Credicorp's key financial data, capitalization, and significant business risks, including macroeconomic and pandemic impacts [Selected Financial Data](index=14&type=section&id=3.A%20Selected%20Financial%20Data) This section summarizes Credicorp's consolidated financial data from 2016-2020, highlighting a significant 2020 net profit decline due to increased credit loss provisions and pandemic impacts Credicorp Ltd. Selected Financial Data (2016-2020, In thousands of Soles) | Indicator | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | **Income Statement Data** | | | | | Net Interest Income | 8,489,105 | 9,091,751 | 8,571,342 | | Provision for credit losses, net | (1,531,708) | (1,845,936) | (5,920,508) | | Net profit attributable to Credicorp's equity holders | 3,983,865 | 4,265,304 | 346,894 | | Net basic earnings per common share (Soles) | 50.13 | 53.66 | 4.37 | | **Financial Position Data (End of Period)** | | | | | Total assets | 177,263,201 | 187,859,340 | 237,406,163 | | Total loans | 110,759,390 | 115,609,679 | 137,659,885 | | Total deposits | 103,984,124 | 111,324,194 | 141,660,321 | | Total equity | 24,266,076 | 26,746,310 | 25,445,647 | | **Selected Ratios** | | | | | Return on average equity (ROAE) | 17.47% | 17.03% | 1.36% | | Return on average total assets (ROAA) | 2.29% | 2.34% | 0.16% | | Net interest margin (NIM) | 5.30% | 5.42% | 4.32% | | Operating efficiency | 43.82% | 42.48% | 45.09% | [Risk Factors](index=17&type=section&id=3.D%20Risk%20Factors) This section details Credicorp's material business risks, including macroeconomic, regulatory, market, operational, and ESG factors, with a focus on Peruvian instability and pandemic impacts - The company's operations are highly exposed to Peruvian political, social, and economic conditions, with past instability including terrorism, military coups, and significant government intervention[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The COVID-19 pandemic has severely disrupted the economies where Credicorp operates, adversely affecting credit risk, loan demand, and liquidity management[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) - Regulatory changes pose a significant risk, including a new law granting the Peruvian Central Bank (BCRP) power to set interest rate ceilings and a potential reform of the Peruvian pension system[59](index=59&type=chunk)[73](index=73&type=chunk)[143](index=143&type=chunk) - The company faces increasing competition from highly liquid foreign-owned banks, local and foreign financial institutions, and non-banking competitors like fintech companies[85](index=85&type=chunk)[86](index=86&type=chunk)[88](index=88&type=chunk) - The planned discontinuation of LIBOR after 2021 presents a risk, although Credicorp's net exposure is considered non-material, the transition to alternative rates involves various risks[77](index=77&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Information on the Company](index=42&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details Credicorp's history, corporate structure, and business operations across its four lines of business, emphasizing its regional presence and digital transformation [History and development of the company](index=42&type=section&id=4.A%20History%20and%20development%20of%20the%20company) This section outlines Credicorp's formation in 1995 and its strategic regional expansion through key acquisitions, particularly in microfinance and investment banking - Credicorp Ltd. was established in Bermuda on August 17, 1995, to act as a holding company for its financial services subsidiaries, primarily operating in Peru and other Latin American countries[130](index=130&type=chunk) - Key strategic expansions include creating a regional investment banking platform in 2012 by acquiring stakes in Correval S.A. (Colombia) and IM Trust S.A. (Chile), and a majority stake in Mibanco (Peru) in 2014[133](index=133&type=chunk) - In 2019, Credicorp expanded its microfinance operations into Colombia by acquiring a majority stake in Bancompartir S.A., which merged with Edyficar S.A.S (Encumbra) in October 2020 to form Mibanco - Banco de la Microempresa de Colombia S.A[140](index=140&type=chunk)[141](index=141&type=chunk) [Business Overview](index=46&type=section&id=4.B%20Business%20Overview) This section details Credicorp's four lines of business, strategic focus on digital innovation and ESG, and their operational and competitive landscape - Credicorp is organized into four main Lines of Business (LoBs): Universal Banking, Microfinance, Insurance & Pensions, and Investment Banking & Wealth Management, primarily focused on Peru with growing presence in Colombia, Chile, and Bolivia[145](index=145&type=chunk) - The company established Krealo, an open innovation arm, to build, invest in, or partner with fintech companies, driving digital and financial inclusion across Latin America with ventures like Culqi and Tenpo[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - In 2020, Credicorp launched a comprehensive 2020-2025 Sustainability Program focused on creating a sustainable and inclusive economy, improving financial health, and empowering employees, aligning with UN Sustainable Development Goals[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) Contribution by Line of Business (2020) | Line of Business | External Income (%) | Net Interest Income (%) | Total Assets (%) | Net Profit Attributable (%) | | :--- | :--- | :--- | :--- | :--- | | Universal Banking | 62.8% | 75.0% | 81.4% | 153.3% | | Microfinance | 12.0% | 20.0% | 7.1% | -134.9% | | Insurance & Pensions | 19.6% | 6.0% | 7.3% | 98.0% | | Investment Banking & Wealth Management | 6.0% | 0.8% | 4.9% | 55.3% | [Organizational Structure](index=158&type=section&id=4.C%20Organizational%20structure) This section describes Credicorp Ltd.'s Bermuda-based holding company structure and its controlling interests in key subsidiaries across Latin America - Credicorp Ltd. is a Bermuda-exempted holding company that coordinates and manages the business plans of its subsidiaries[130](index=130&type=chunk) - As of year-end 2020, Credicorp holds direct and indirect majority ownership in key subsidiaries including BCP (97.71%), Mibanco (99.92%), Grupo Pacifico (98.81%), and Credicorp Capital (100.00%)[130](index=130&type=chunk) [Operating and Financial Review and Prospects](index=159&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes Credicorp's 2020 financial performance, significantly impacted by the COVID-19 pandemic, detailing profit decline, loan growth, and liquidity management [Operating Results](index=159&type=section&id=5.A%20Operating%20results) This section details Credicorp's 2020 operating results, showing a significant net profit decline driven by increased credit loss provisions despite loan growth from government stimulus - Credicorp's 2020 net profit attributable to equity holders was **S/346.9 million**, a significant decrease from **S/4,265.3 million** in 2019, resulting in an ROAE of **1.36%** and an ROAA of **0.16%**[561](index=561&type=chunk) - The primary driver of the profit decline was a **220.7%** increase in provisions for credit losses, totaling **S/5,920.5 million** for 2020, leading to a cost of risk of **4.30%**[563](index=563&type=chunk) - Total loans grew by **19.1%** in 2020, largely due to participation in government-backed programs like Reactiva Peru (**S/24.3 billion**) and FAE-Mype (**S/353.5 million**) aimed at mitigating the economic impact of COVID-19[562](index=562&type=chunk)[695](index=695&type=chunk) - Net interest income decreased by **5.7%** to **S/8,571.3 million**, and the Net Interest Margin (NIM) fell by **110 basis points** to **4.32%**, affected by lower interest rates on government program loans and a less profitable asset mix[563](index=563&type=chunk) [Liquidity and Capital Resources](index=232&type=section&id=5.B%20Liquidity%20and%20Capital%20Resources) This section assesses Credicorp's liquidity and capital resources, highlighting strong regulatory capital ratios, a diversified deposit base, and effective liquidity risk management Credicorp Ltd. Regulatory Capital (in millions of Soles) | Item | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | Total Regulatory Capital (A) | 25,064 | 25,733 | 28,969 | | Total Regulatory Capital Requirements (B) | 20,437 | 21,622 | 20,995 | | **Regulatory Capital Ratio (A) / (B)** | **1.23** | **1.19** | **1.38** | BCP Stand-alone & Mibanco Capital Ratios (as of Dec 31, 2020) | Ratio | BCP Stand-alone | Mibanco | | :--- | :--- | :--- | | Tier 1 ratio | 10.41% | 17.67% | | CET1 ratio | 11.40% | 17.70% | | BIS ratio | 14.93% | 19.82% | - Net cash flow from operating activities increased significantly to **S/12,687 million** in 2020 from **S/6,934 million** in 2019, mainly due to strong growth in deposits and payables from repurchase agreements related to government programs[861](index=861&type=chunk)[862](index=862&type=chunk) [Trend Information](index=242&type=section&id=5.D%20Trend%20Information) This section discusses future trends and uncertainties for Credicorp, including Peru's GDP growth, ongoing pandemic impacts, regulatory changes, and political instability - Peru's GDP is expected to grow **8-10%** in 2021, but this is subject to uncertainties from the COVID-19 pandemic's evolution and the effectiveness of the vaccine rollout[883](index=883&type=chunk)[884](index=884&type=chunk) - Significant regulatory risk exists from a new law (March 2021) allowing the BCRP to set interest rate ceilings on loans, which could impact margins, and an integral reform of the Peruvian pension system is also under evaluation[886](index=886&type=chunk)[887](index=887&type=chunk) - The 2021 general elections in Peru are marked by high political uncertainty, with no candidate having strong voter preference, which could affect investment, consumption, and overall economic stability[888](index=888&type=chunk) [Directors, Senior Management and Employees](index=246&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details Credicorp's Board of Directors, senior management, employee count, compensation, and significant shareholder information - As of December 31, 2020, Credicorp's Board of Directors consists of nine members, chaired by Luis Enrique Romero Belismelis, with the senior management team led by CEO Walter Bayly[897](index=897&type=chunk)[898](index=898&type=chunk)[915](index=915&type=chunk) Compensation for Directors and Senior Management (in thousands of Soles) | Category | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | Director's compensation | 5,665 | 6,766 | 6,106 | | Senior Management Compensation | 61,431 | 59,375 | 55,152 | | **Total** | **67,096** | **66,141** | **61,258** | - As of December 31, 2020, Credicorp and its subsidiaries had a total of **36,806** employees, with the largest numbers employed by BCP Stand-alone (**16,770**) and Mibanco (**10,781**)[964](index=964&type=chunk)[965](index=965&type=chunk) - Luis Enrique Romero Belismelis and his family are major shareholders, beneficially owning **12,212,591** common shares, representing **12.94%** of the company's stock as of December 31, 2020[967](index=967&type=chunk)[968](index=968&type=chunk) [Major Shareholders and Related Party Transactions](index=265&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section identifies Credicorp's major shareholders and details related party transactions, including loans, investments, and deposits, conducted on market terms - As of February 2, 2021, the two major shareholders of Credicorp were Atlantic Security Holding Corporation (**15.49%**) and the Romero family (**12.94%**)[971](index=971&type=chunk)[972](index=972&type=chunk) Transactions with Related Companies (in thousands of Soles) | Transaction Type | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | Direct loans | 2,594,712 | 1,657,206 | 1,909,516 | | Investments | 775,397 | 935,286 | 1,165,661 | | Deposits | (425,938) | (751,990) | (1,582,412) | - Direct loans to employees, directors, senior management, and their families amounted to **S/1.1 billion** as of December 31, 2020, granted in the ordinary course of business on market terms[982](index=982&type=chunk) [Financial Information](index=268&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section confirms the inclusion of financial statements, discloses ongoing legal proceedings, government investigations, and the company's dividend policy - Credicorp's subsidiary, ASB, is involved in litigation with the Madoff Trustee, who seeks to recover approximately **US$120 million** related to redemptions from Fairfield Sentry Limited, for which a provision has been deemed prudent[986](index=986&type=chunk)[987](index=987&type=chunk) - Peruvian authorities have initiated sanctioning processes against Credicorp and its subsidiaries for failing to disclose political campaign contributions made in 2011 and 2016, though Credicorp believes these do not pose a significant risk of material liability[990](index=990&type=chunk)[992](index=992&type=chunk)[993](index=993&type=chunk) - The company's dividend policy targets a payout of at least **25%** of consolidated net profits, but no dividend was declared for fiscal year 2020 due to COVID-19 uncertainty[995](index=995&type=chunk)[998](index=998&type=chunk) [The Offer and Listing](index=272&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section details the trading of Credicorp's common shares on the NYSE and BVL under ticker BAP, including market regulation - Credicorp's common shares are traded on the New York Stock Exchange (NYSE) and the Bolsa de Valores de Lima (BVL) under the ticker symbol **BAP**[1000](index=1000&type=chunk) [Additional Information](index=275&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides supplementary corporate information, including Credicorp's Bye-laws, exchange controls, and taxation implications for the company and its shareholders - Credicorp is an exempted company incorporated in Bermuda, with its primary objects being to act as a holding and investment company[1012](index=1012&type=chunk)[1013](index=1013&type=chunk) - There are no exchange controls in Peru or Bermuda that restrict the company's ability to transfer funds or pay dividends to foreign shareholders[1032](index=1032&type=chunk)[1033](index=1033&type=chunk) - Under Peruvian law, capital gains from an indirect transfer of shares of a Peruvian-domiciled entity by a non-domiciled entity can be subject to Peruvian income tax if certain ownership and value thresholds are met[1038](index=1038&type=chunk)[1039](index=1039&type=chunk) [Quantitative and Qualitative Disclosures about Risk Management](index=291&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20RISK%20MANAGEMENT) This section details Credicorp's comprehensive risk management framework, covering credit, market, liquidity, operational, and strategic risks, and their mitigation strategies - The Group's risk management is governed by a framework approved by the Board of Directors, which establishes a risk appetite based on core metrics (solvency, liquidity, profit) and specific metrics for various risk types[1071](index=1071&type=chunk)[1088](index=1088&type=chunk) - Credit risk is managed using a three-stage impairment model based on Expected Credit Losses (ECL) as per IFRS 9, incorporating parameters like Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), and forward-looking macroeconomic scenarios[1096](index=1096&type=chunk)[1097](index=1097&type=chunk) Consolidated Value at Risk (VaR) by Risk Type (in thousands of Soles) | Risk Type | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | Interest rate risk | 9,527 | 9,274 | 163,982 | | Price risk | 4,476 | 7,809 | 55,748 | | Diversification effect | (3,587) | (6,245) | (84,977) | | **Consolidated VaR** | **10,426** | **11,301** | **135,461** | - Interest rate risk in the banking book is monitored through sensitivity analysis, where a **+/- 100 basis point** parallel shift in interest rates would impact the financial margin by **+/- S/39.3 million** for Peruvian Sol and **+/- S/95.9 million** for US Dollar positions as of year-end 2020[1152](index=1152&type=chunk)[1155](index=1155&type=chunk) [Controls and Procedures](index=320&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of Credicorp's disclosure controls and internal control over financial reporting as of December 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[1170](index=1170&type=chunk) - Based on the COSO 2013 framework, management assessed the internal control over financial reporting as effective as of December 31, 2020, with no material weaknesses identified[1173](index=1173&type=chunk) - The independent registered public accounting firm issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2020[1174](index=1174&type=chunk)[1177](index=1177&type=chunk) [Corporate Governance](index=325&type=section&id=ITEM%2016.%20CORPORATE%20GOVERNANCE) This section outlines Credicorp's corporate governance practices, including its code of ethics, audit committee, accountant fees, and differences from NYSE standards - The Board of Directors has determined that Ms. Patricia Lizarraga Guthertz is the Audit Committee Financial Expert[1193](index=1193&type=chunk) - Credicorp has adopted a code of ethics that applies to all directors, officers, and employees, which is available on the company's website[1194](index=1194&type=chunk) Principal Accountant Fees (in thousands of Soles) | Fee Category | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | | Audit | 15,556 | 17,223 | 21,106 | | Audit – Related | 20 | 66 | - | | Tax | 57 | 520 | 410 | | All Other | 266 | 928 | 489 | | **Total** | **15,899** | **18,737** | **22,005** | - As a foreign private issuer incorporated in Bermuda, Credicorp's corporate governance practices differ from NYSE standards for U.S. companies, particularly regarding director independence and board committee composition[1212](index=1212&type=chunk)[1225](index=1225&type=chunk) PART II [Defaults, Dividend Arrearages and Delinquencies](index=320&type=section&id=ITEM%2013.%20DEFAULTS%2C%20DIVIDEND%20ARREARAGES%20AND%20DELINQUENCIES) This section confirms that Credicorp and its subsidiaries have no history of debt defaults, rescheduling, or dividend arrearages - Neither Credicorp nor its subsidiaries have ever defaulted on debt or been forced to reschedule obligations[1168](index=1168&type=chunk) PART III [Financial Statements](index=342&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section confirms the inclusion of Credicorp's consolidated financial statements and the independent auditor's report in the Annual Report - The audited consolidated financial statements for Credicorp Ltd. and its subsidiaries are filed as part of this Annual Report[1234](index=1234&type=chunk) [Exhibits](index=343&type=section&id=ITEM%2019.%20EXHIBITS) This section lists all exhibits filed with the Annual Report, including corporate documents and required CEO/CFO certifications - The report includes several exhibits, such as the company's Bye-laws, a list of subsidiaries, and required CEO/CFO certifications under the Sarbanes-Oxley Act[1236](index=1236&type=chunk)

Credicorp Ltd (NYSE:BAP) Q4 2020 Earnings Conference Call February 9, 2021 9:30 AM ET Company Participants Walter Bayly - Chief Executive Officer Gianfranco Ferrari - Deputy Chief Executive Officer Reynaldo Llosa - Chief Risk Officer Cesar Rios - Chief Financial Officer Alvaro Correa - Deputy CEO and Head of Insurance & Pensions Funds Conference Call Participants Ernesto Gabilondo - Bank of America Jason Mollin - Scotiabank Tito Labarta - Goldman Sachs Jorg Friedemann - Citigroup Geoffrey Elliott - Autonomo ...

CREDIC�RP Earnings Conference Call 3Q/2020 ＣＲＥＤＩＣＣＲＰ 1. COVID-19 Update 2. 3Q20 Results 3. Outlook 4. Key Takeaways 5. Appendix ＣＲＥＤＩＣ ◇ Ｒ Ｐ 1. COVID-19 Update Economic Reactivation in Peru continues CREDIC❖RP Almost a "V" shaped recovery … Excess deaths between 2020 and 2019 in Peru and Metropolitan Lima (weekly tally) (1) —Peru 4,666 -Metropolitan Lima 781 246 Jan Feb Mar Apr May Aug Sep Oct Jun Jul Cement, Vehicles and Real Estate (2019 = 100)(3) - Real Estate transactions 109 100 Cement Dispatchment 94 ...

Credicorp Ltd. (NYSE:BAP) Q3 2020 Earnings Conference Call November 6, 2020 9:30 AM ET Company Participants Walter Bayly - Chief Executive Officer Gianfranco Ferrari - Deputy Chief Executive Officer Reynaldo Llosa - Chief Risk Officer Cesar Rios - Chief Financial Officer Alvaro Correa - Deputy CEO and Head of Insurance & Pensions Funds Conference Call Participants Ernesto Gabilondo - Bank of America Jorge Kuri - Morgan Stanley Thiago Batista - UBS Tito Labarta - Goldman Sachs Jason Mollin - Scotiabank Geoff ...

Financial Data and Key Indicators Changes - Credicorp reported a loss of PEN 620 million in Q2 2020, resulting in a return on equity of -10.7% [20] - The loan portfolio grew by 21.4% year-over-year, primarily driven by government relief programs, while the structural loan portfolio grew by 7.7% [38] - The cost of risk was significantly impacted, sitting at 7.76% for the quarter, with provisions increasing by 79.3% quarter-over-quarter and 510.7% year-over-year [25][40] Business Line Data and Key Indicators Changes - BCP's loan portfolio grew by 18.6% year-over-year, with SME loans increasing by 30.6%, largely due to Reactiva loans [21] - Mibanco's loan growth was attributed to government relief programs, with a 7.9% year-over-year increase in average daily balances [29] - The insurance and pensions business saw improved net income year-over-year, driven by a rise in property and casualty results [35] Market Data and Key Indicators Changes - The Peruvian economy experienced a severe contraction, with GDP expected to decline between 11% and 15% in 2020, but is projected to rebound by 6% to 10% in 2021 [8][9] - Household consumption has recovered to 77% of pre-pandemic levels, indicating signs of economic reactivation [7] - The financial system is highly liquid, with total loans in the private sector growing around 13% year-over-year, supported by the Reactiva Peru program [12] Company Strategy and Development Direction - The company is focused on digital transformation, with a significant increase in digital clients and transactions, aiming to enhance customer experience and operational efficiency [16][17] - Credicorp is committed to maintaining a solid financial condition while supporting stakeholders, including providing medical coverage for employees and financial support for clients [12][13] - The company plans to continue investing in digital capabilities and optimizing operations to adapt to the changing environment [42][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic recovery, noting that the worst appears to be behind for GDP figures [8] - The company anticipates lower levels of year-over-year contraction in the coming months, with expectations for a gradual recovery in the economy [9] - Forward-looking provisions are expected to decrease in the second half of 2020 compared to the first half, reflecting improved portfolio performance [48] Other Important Information - Credicorp's common equity Tier 1 levels remain above internal targets, indicating a strong capital base [44] - The company issued $500 million in senior notes as a conservative measure to manage liquidity during the COVID-19 situation [45] - The efficiency ratio deteriorated year-over-year, primarily due to decreased operating income, but cost-saving measures are being implemented [42] Q&A Session Summary Question: Provision charges normalization expectations - Management expects lower provisions in the second half of the year compared to the first half, but not as favorable as the last half of 2019 [50][52] Question: Risk exposure in the wholesale loan portfolio - Management does not anticipate significant provision charges from the wholesale loan portfolio, citing positive payment trends [53][54] Question: Political and regulatory outlook - Management noted ongoing legislative initiatives regarding interest rates and support for debtors, with a stable cabinet structure [55][56] Question: NIM and NII recovery - Management indicated that the impairment charge is a one-off event and that NII may stabilize as loan payments resume [58][59] Question: Risk profile of renegotiated loans - Management reported active restructuring of loans, with both collateralized and non-collateralized loans performing better than expected [63][65] Question: IT investment plans - Management confirmed continued investment in digital channels to achieve long-term efficiencies despite short-term impacts on traditional fee income [66][67] Question: Long-term ROE expectations - Management acknowledged that ROEs may remain lower for a while due to the impact of Reactiva loans, but they are working towards efficiency improvements [68][69]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of ...

Credicorp Ltd (NYSE:BAP) Q1 2020 Earnings Conference Call May 8, 2020 10:30 AM ET Company Participants Cesar Rios - CFO Walter Bayly - CEO Gianfranco Ferrari - Deputy CEO & Head, Universal Banking Reynaldo Llosa - Chief Risk Officer Conference Call Participants Ernesto Gabilondo - Bank of America Merrill Lynch Jason Mollin - Scotiabank Jorge Kuri - Morgan Stanley Marcelo Telles - Crédit Suisse Jorg Friedemann - Citigroup Carlos Gomez - HSBC Piedad Alessandri - Credicorp Capital Sergey Dubin - Harding Loevne ...