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]

Credicorp Ltd. (NYSE:BAP) Q3 2023 Earnings Conference Call November 3, 2023 10:30 AM ET Company Participants Milagros Ciguenas - IRO Cesar Rios - CFO Raimundo Morales - CEO, Yape Reynaldo Llosa - Chief Risk Officer Conference Call Participants Tito Labarta - Goldman Sachs Ernesto Gabilondo - Bank of America Merrill Lynch Geoffrey Elliott - Autonomous Research Thiago Batista - UBS Yuri Fernandes - JPMorgan Sergey Dubin - HL Carlos Gomez - HSBC Andres Soto - Santander Operator Good morning everyone. I would l ...

ＣＲＥＤＩＣＣＲＰ Earnings Conference Call November 2023 Earnings Conference Call 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 may contain information about financial results, economic conditions, trends and known uncertainties. Forward-looking statements are not as ...

Financial Performance - Net Income attributable to Credicorp increased 22.6% YoY to S/1,401 million, resulting in a ROE of 18.6%[5] - Net Income attributable to Credicorp reached S/1,401 million, up 1.2% QoQ and 22.6% YoY, with a ROE of 18.6%[30] - BCP Stand-alone reported 8.5% YoY growth in Net Income, mainly from an increase in Net Interest Income (NII)[35] - Net profit for 2Q23 reached S/1,429,817, reflecting a 22.1% increase year-over-year[38] - Total other income increased by 19.7% year-over-year to S/1,433,786 in 2Q23[38] Loan and Deposit Trends - Structural Loans measured in average daily balances declined 0.6% QoQ but increased 5.5% YoY, driven by growth in Retail Banking at BCP[5] - Total Deposits at quarter-end declined 3.5% QoQ and 2.7% YoY, with Credicorp maintaining a 40.6% market share in low-cost deposits[5] - Total loans as of June 2023 amounted to S/137,905 million, reflecting a QoQ decrease of 0.5% and a YoY increase of 1.6%[66] - Government Program Loans dropped 26.7% QoQ and 64.3% YoY, representing 3.9% of total loans at quarter-end[59] - The loan portfolio quality showed an NPL ratio of 5.64% in 2Q23, an increase of 46 basis points year-over-year[38] Risk and Provisions - The Structural NPL ratio increased 23 bps QoQ to 5.3%, influenced by social unrest and high inflation[6] - Structural Provisions increased 10.5% QoQ and 124.3% YoY, reflecting a challenging macroeconomic environment[7] - Structural Cost of Risk stood at 2.3%, reflecting the impact of adverse macroeconomic conditions on client payment capacity[22] - The coverage ratio of NPLs decreased to 98.7% in 2Q23, down 790 basis points year-over-year[38] - Provisions for credit losses on the loan portfolio rose to S/ 882,156,000 in 2Q23, reflecting a 10.4% increase QoQ and a 100.3% increase YoY[108] Efficiency and Cost Management - The Efficiency Ratio improved 310 bps YoY to 44.4% for 1H23, despite a seasonal increase in 2Q23[9] - The efficiency ratio improved to 44.6% in 2Q23, a decrease of 310 basis points year-over-year[38] - Operating expenses increased 9.1% YoY, primarily due to expenses at BCP and disruptive initiatives[29] - Total operating expenses reached S/2,103,072 in Q2 2023, reflecting a 3.2% QoQ increase[140] - Disruptive expenses surged by 69.6% YTD, representing 9.0% of total operating expenses, attributed to investments in various digital initiatives[147] Digital Engagement and User Metrics - Monthly active users (MAU) of Yape reached 9.0 million, with monthly revenue per MAU up 32% QoQ to S/2.5[10] - Yape reached 12.6 million users by the end of Q2 2023, with 9.0 million monthly active users (MAU), representing a 70% engagement rate[44] - In Q2 2023, Yape executed 615 million transactions, totaling S/53 billion year-to-date, averaging 25 transactions per MAU[44] - Yape users made over 34.4 million mobile top-ups in Q2 2023, marking a 13.3% increase from Q1 2023 and a 208% increase from Q2 2022[46] - Yape's Net Promoter Score (NPS) reached 78 points in Q2 2023, indicating strong user satisfaction[49] Capital and Regulatory Ratios - The CET1 Ratio for BCP at quarter-end was 12.8%, up 123 bps YoY and 87 bps QoQ[9] - Credicorp's Tier 1 ratio increased to 12.75% in 2Q23, up 89 basis points from the previous quarter[38] - The Global Capital Ratio at BCP Stand-alone reached 17.2%, up 75 bps QoQ, driven by the same factors affecting the IFRS CET1 Ratio[156] - Credicorp's Regulatory Capital Ratio stood 1.46 times above the minimum requirement, with a slight QoQ increase of 3 bps[153] - The structural allowance for loan losses stood at S/ 7,824 million, reflecting a QoQ increase of 0.6% but a YoY decrease of 3.6%[66] Economic Environment and Challenges - In 2Q23, the Peruvian economy is expected to have contracted around 0.5% YoY, marking its worst performance in 22 years, excluding the pandemic[163] - Inflation closed 2Q23 at 6.5% YoY, after remaining above or close to 8.0% for 14 consecutive months[166] - The annualized fiscal deficit rose to 2.6% of GDP in the last 12 months to June 2023, with tax revenues falling 14.2% YoY[168] - The trade balance surplus rose to USD 11.6 billion by May 2023, although exports fell 3.2% YoY to USD 64.9 billion[169] - The Central Reserve Bank of Peru maintained the monetary policy rate at 7.75%, its highest level since January 2023[166] IFRS 17 Implementation - The implementation of IFRS 17 resulted in a net equity increase of S/. 10 million for Pacifico Seguros by the end of December 2022 compared to IFRS 4[186] - The aggregate impact of implementing IFRS 17 on the net earnings of Credicorp was not material, amounting to S/. 15 million[192] - The recognition of insurance underwriting income under IFRS 17 is fundamentally different, requiring present value measurements of insurance obligations[190] - The adjustment in the Efficiency Ratio reflects a more accurate representation of the company's operational efficiency[199] - The company is transitioning to IFRS 17, which may affect future financial reporting and performance metrics[199]

Financial Data and Key Metrics Changes - Net income increased by 22.6% year-on-year, with a return on equity (ROE) of 18.6% for the quarter, driven by strong results in Universal Banking and Insurance businesses [8][35] - Net interest income (NII) grew by 21.5%, primarily due to rising interest rates and structural loan dynamics, despite higher funding costs [13][28] - The structural cost of risk increased by 127 basis points to 2.3%, mainly driven by SME-Pyme and vulnerable individual segments [13][32] Business Line Data and Key Metrics Changes - Universal Banking and Insurance businesses were the main contributors to positive results, with BCP's NII increasing by 29.6% year-on-year [19][35] - Mibanco's profitability began to recover, with NII rising by 4.6% quarter-over-quarter, and ROE rebounding to 9.5% [22][24] - Grupo Pacifico's net income increased by 32.1%, driven by the Life business, with improved profitability in life insurance and property segments [25][35] Market Data and Key Metrics Changes - The Peruvian economy is expected to have contracted by 0.5% year-on-year in the first half of 2023, marking the most significant decline in 22 years, excluding the pandemic period [15][16] - Domestic demand fell by 2% year-on-year in the first half, driven by a sharp 10% decline in private investment [16] - The GDP growth forecast for Peru in 2023 is now 1%, with expectations of a rebound to around 2% in the second half [9][36] Company Strategy and Development Direction - The company is focusing on expanding its retail business and increasing non-interest income through adjacent businesses [5][6] - There is a commitment to enhancing governance and transparency while pursuing social impact initiatives [7] - The strategy includes investing in disruptive initiatives like Yape, which is expected to reach breakeven by 2024 [6][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the political scenario improved, but social unrest and climate events impacted the first half of the year [8][9] - The company anticipates softer results in the second half of the year due to challenging macroeconomic conditions [14][36] - The impact of El Nino is being closely monitored, with expectations of a weak to moderate effect on the economy [10][36] Other Important Information - The efficiency ratio improved by 310 basis points to 44.6%, reflecting strong income growth [13][35] - The company maintained a market share of 41% in low-cost deposits, despite a system-wide contraction [12][28] - Yape's monthly active users reached 9 million, with significant growth in transaction volumes [21][22] Q&A Session Summary Question: ROE guidance and compensation for softer loan growth - Management maintained ROE guidance at 17.5%, expecting to offset softer loan growth with higher non-interest income and seasonal increases in expenses [40][43] Question: Cost of risk expectations for next year - Management indicated uncertainty for next year's cost of risk, with expectations for improvement based on risk management efforts [45][46] Question: Strategies to improve ROEs across subsidiaries - A transformation plan is in place for Mibanco aiming for ROE of 16% to 17% by 2025, while BCP Bolivia's ROE is stable compared to the banking system [48][49] Question: Yape's monetization and growth drivers - Growth in Yape's transaction volumes is driven by P2P transactions and merchant services, with ongoing efforts to enhance monetization [51][53] Question: Sustainability of insurance results - Management expects sustainable ROI around the low 20s for the insurance business, despite potential reductions in collective group life business [72][73] Question: Sensitivity of margin to lower rate environment - The sensitivity of margin to a 100 basis point cut in rates is around 25 basis points, with expectations to maintain current NIM levels [76][78]

Credicorp Ltd (NYSE:BAP) Q1 2023 Earnings Conference Call May 8, 2023 10:30 AM ET Company Participants Milagros Ciguenas - Investor Relations Officer Gianfranco Ferrari - Chief Executive Officer Cesar Rios - Chief Financial Officer Reynaldo Llosa - Chief Risk Officer Conference Call Participants Ernesto Gabilondo - Bank of America Rene Perez - Scotiabank Olavo Arthuzo - UBS Geoffrey Elliott - Autonomous Nicholas Walker - Goldman Sachs Tejkiran Magesh - WhiteOak Capital Alonso Aramburu - BTG Andres Soto - Sa ...

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 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 ...