Core Insights - Credicorp will celebrate its 30-year anniversary since its IPO and host the 2025 Investor Day on October 9, 2025, in New York [1][2] Event Details - The event will feature reflections on the company's transformation over the past 30 years and discussions on its integrated strategy for the future of financial services [2] - It will be conducted in a hybrid format, allowing participation in person or via a live webcast [2] - The schedule includes welcome remarks, panel discussions with senior management, and a Q&A session [3] - Pre-registration for in-person attendance is required by October 2, 2025 [3] Company Overview - Credicorp is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama [4] - The company has a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [4]

Core Viewpoint - Credicorp Ltd. initiates legal action against the Peruvian Tax Administration (SUNAT) for disregarding legal norms and decisions made by SUNAT's Review Committee, which undermines legal certainty for companies operating in Peru [1][4]. Group 1: Legal Action and Tax Dispute - The legal action is in response to SUNAT's reopening of a case regarding transactions from 2018 and 2019, where Grupo Crédito S.A. purchased Banco de Crédito del Perú (BCP) shares from Credicorp Ltd. [2][4]. - SUNAT is seeking over S/. 1.5 billion in alleged unpaid income tax and accrued interest, despite the Review Committee's previous confirmation of the transactions' authenticity and compliance with tax laws [4]. Group 2: Compliance and Regulatory Framework - The transactions were communicated to the Superintendencia del Mercado de Valores (SMV), approved by the Superintendencia de Banca, Seguros y AFP (SBS), and registered with Registro Central de Valores y Liquidaciones (CAVALI), indicating full compliance with legal and regulatory requirements [3]. - Grupo Crédito S.A. reaffirms its commitment to regulatory and tax compliance, emphasizing the protection of its employees, clients, and investors [5]. Group 3: Company Overview - Credicorp is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama, and has a diversified business portfolio across Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [6].

[Operating and Financial Highlights](index=3&type=section&id=Operating%20and%20Financial%20Highlights) Credicorp reported robust 1Q25 operational results with significant net income and ROE growth, driven by strong performance in Universal Banking and Microfinance, alongside strategic advancements in innovation | Metric | 1Q25 Value | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **Net Income** | S/1,777.7 million | +57.8% | +17.6% | | **ROE** | 20.3% | - | - | | **ROE (ex-extraordinary gain)** | 18.4% | - | - | | **Total Loans (ADB)** | S/143,867 million | +0.8% | +1.5% | | **Total Deposits** | - | +0.3% | +9.7% | | **Risk-Adjusted NIM** | 5.24% | - | - | | **NPL Ratio** | 5.1% | -16 bps | -112 bps | | **Cost of Risk (CoR)** | 1.6% | - | - | | **Efficiency Ratio** | 45.7% | - | - | - Robust operational results were driven by Universal Banking and Insurance & Pensions, with improved momentum in Microfinance. The company is advancing its 'decoupling' strategy, with **5.4% of risk-adjusted revenues** from its innovation portfolio, on track to meet the **10% target by 2026**[3](index=3&type=chunk) - Yape, a key disruptive initiative, reached **14.3 million Monthly Active Users (MAU)** with an average of **52 monthly transactions per user**, contributing **4.8% of Credicorp's total risk-adjusted revenue**[6](index=6&type=chunk) - An extraordinary gain from the acquisition of the remaining 50% stake in the Empresas Banmedica JV significantly boosted ROE to **20.3%**. Excluding this gain, ROE was a strong **18.2%**[4](index=4&type=chunk) - In March 2025, the revaluation of Bolivia's balance sheet using a market-reflective FX rate resulted in a **2.0% accounting contraction** of Credicorp's Total Assets. Loan and deposit analysis in the report excludes this non-cash adjustment to reflect underlying performance[6](index=6&type=chunk) [Summary of Financial Performance and Outlook](index=6&type=section&id=Summary%20of%20Financial%20Performance%20and%20Outlook) This section provides a detailed overview of Credicorp's financial performance in 1Q25, covering key metrics, segment-specific results, and the company's outlook [Loans and Deposits](index=6&type=section&id=Loans%20and%20Deposits) Loan growth in 1Q25 was modest, driven by Wholesale Banking, Consumer, and Mortgages, while deposits saw strong YoY growth fueled by low-cost sources. A non-cash accounting adjustment related to Bolivian operations caused a 2.0% decline in total assets, but underlying business trends for loans and deposits remain positive | Metric | QoQ Change | YoY Change | Key Drivers | | :--- | :--- | :--- | :--- | | **Total Loans (ADB)** | +0.8% | +1.5% | Wholesale Banking (working capital), Consumer (Yape), Mortgages | | **Total Deposits (ex-Bolivia adj.)** | +0.3% | +9.7% | Low-Cost Deposits (+16.9% YoY), representing 71.8% of total deposits | - A non-cash accounting adjustment in March for Bolivian operations, updating the FX rate, led to a **2.0% accounting-based decline** in Credicorp's total assets without impacting cash flow. The analysis of loan and deposit trends excludes this effect[13](index=13&type=chunk)[14](index=14&type=chunk) [Net Interest Income (NII) and Margin (NIM)](index=7&type=section&id=Net%20Interest%20Income%20(NII)%20and%20Margin%20(NIM)) Net Interest Income (NII) rose 4.3% YoY due to lower funding costs from a higher share of low-cost deposits, though it fell 1.6% QoQ due to lower market rates impacting loan income. The Net Interest Margin (NIM) slightly compressed to 6.22% | Metric | 1Q25 Value | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **NII** | - | -1.6% | +4.3% | | **NIM** | 6.22% | -12 bps | -8 bps | - The YoY increase in NII was primarily driven by a reduction in Interest and Similar Expenses, resulting from lower market rates and a larger proportion of low-cost deposits in the funding base[22](index=22&type=chunk) [Portfolio Quality and Cost of Risk](index=7&type=section&id=Portfolio%20Quality%20and%20Cost%20of%20Risk) Portfolio quality and Cost of Risk showed notable improvement due to enhanced risk management, a better macroeconomic environment, and specific client debt repayments. The NPL ratio decreased significantly both QoQ and YoY, and provisions for loan losses also declined sharply | Metric | 1Q25 Value | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **NPL Balance** | - | -5.9% | -17.7% | | **NPL Ratio** | 5.1% | -16 bps | -112 bps | | **Provisions** | - | -21.7% | -45.5% (ex-reversals) | - The improvement in portfolio quality was driven by debt repayments from corporate clients at BCP Stand-alone and a reduction in internal overdue loans at both BCP and Mibanco[24](index=24&type=chunk)[25](index=25&type=chunk) [Other Income and Insurance](index=8&type=section&id=Other%20Income%20and%20Insurance) Other Income surged 21.4% YoY, largely due to an extraordinary S/ 236 million gain from the acquisition of the remaining 50% of Empresas Banmedica. Excluding this gain, Other Income still grew 4.5% YoY, driven by a 15.1% increase in Other Core Income from fees and FX transactions. The Insurance Underwriting Result also grew a strong 17.9% YoY - Credicorp recognized an extraordinary gain of approximately **S/ 236 million** from revaluing its previously held 50% stake in the Empresas Banmedica joint venture upon acquiring the remaining half[31](index=31&type=chunk) | Metric | QoQ Change | YoY Change | Note | | :--- | :--- | :--- | :--- | | **Other Income** | +6.8% | +21.4% | Includes extraordinary gain | | **Other Income (ex-gain)** | -8.1% | +4.5% | Driven by 15.1% YoY growth in Other Core Income | | **Insurance Underwriting Result** | +5.3% | +17.9% | Driven by improved Reinsurance Result | [Efficiency and Net Earnings](index=9&type=section&id=Efficiency%20and%20Net%20Earnings) The efficiency ratio for 1Q25 was 45.7%, in line with guidance, reflecting a 15.6% YoY increase in operating expenses driven by core business and innovation investments. Net earnings attributable to Credicorp reached S/1,777.7 million, a 17.6% YoY increase, resulting in an ROE of 20.3%, significantly boosted by the Banmedica acquisition gain - The efficiency ratio stood at **45.7%**, which is aligned with the full-year guidance. Operating expenses grew **15.6% YoY**, mainly due to investments in BCP's core business and disruptive initiatives[38](index=38&type=chunk) | Metric | 1Q25 Value | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **Net Earnings** | S/1,777.7 M | +57.8% | +17.6% | | **ROE** | 20.3% | - | - | | **Net Earnings (ex-gain)** | - | +43.0% | +6.6% | | **ROE (ex-gain)** | 18.4% | - | - | [Outlook](index=11&type=section&id=Outlook) Despite a strong 1Q25 ROE, Credicorp maintains its full-year 2025 ROE guidance at around 17.5% due to global uncertainty. The company expects results to be supported by accelerating loan growth in retail, resilient NIM, and controlled cost of risk - Credicorp maintains its **2025 ROE guidance at approximately 17.5%**, citing global uncertainty despite the strong start to the year[52](index=52&type=chunk) - Future results are expected to be supported by: (i) accelerated loan portfolio growth, particularly in retail, (ii) resilient Net Interest Margin (NIM), and (iii) a controlled cost of risk[52](index=52&type=chunk) [Financial Overview](index=12&type=section&id=Financial%20Overview) A comprehensive overview of Credicorp's key financial metrics for 1Q25, 4Q24, and 1Q24, highlighting trends in profitability, asset quality, and efficiency | Key Metric | 1Q24 | 4Q24 | 1Q25 | | :--- | :--- | :--- | :--- | | **Net profit attributable to Credicorp (S/ thousands)** | 1,511,657 | 1,126,713 | 1,777,697 | | **Net income / share (S/)** | 19.0 | 14.1 | 22.3 | | **ROAE** | 18.2% | 13.3% | 20.3% | | **Net interest margin** | 6.30% | 6.34% | 6.22% | | **Risk-adjusted Net interest margin** | 4.85% | 5.08% | 5.24% | | **NPL ratio** | 6.2% | 5.3% | 5.1% | | **Cost of risk** | 2.3% | 2.1% | 1.6% | | **Efficiency ratio** | 42.8% | 48.4% | 45.7% | [Credicorp's Strategy Update](index=13&type=section&id=Credicorp's%20Strategy%20Update) Credicorp is actively implementing its 'decoupling' strategy through digitalization and innovation, with significant progress in its Yape platform and a new sustainability framework [Credicorp's Strategy](index=13&type=section&id=Credicorp's%20Strategy) Credicorp is executing a 'decoupling' strategy to reduce its dependence on macroeconomic cycles by investing in technology and developing its innovation portfolio. The goal is for the innovation portfolio to contribute 10% of risk-adjusted revenues by 2026, with 1Q25 results showing progress at 5.4%. Key strategic priorities include talent, digital transformation, and sustainability integration - The core strategy is to 'decouple' from economic performance by diversifying income sources, with a focus on non-financial income boosted by digitalization and innovation[59](index=59&type=chunk)[61](index=61&type=chunk) - The innovation portfolio accounted for **5.4% of Credicorp's risk-adjusted revenues** in 1Q25, with a target to reach **10% by 2026**[61](index=61&type=chunk) | Core Business Transformation KPI | 1Q24 | 4Q24 | 1Q25 | | :--- | :--- | :--- | :--- | | **BCP Digital Clients** | 70% | 76% | 78% | | **BCP Digital Monetary Transactions** | 83% | 88% | 89% | | **Mibanco Disbursements through alternative channels** | 22% | 24% | 26% | [Yape](index=14&type=section&id=Yape) Yape continues its rapid expansion, reaching 14.3 million monthly active users (MAU) and achieving significant growth in transaction volume and user engagement. The platform's monetization strategy is advancing, with the gap between revenue and expense per MAU widening. The Payments and Financial businesses are the primary revenue drivers, with the Lending business gaining significant traction | Yape KPI | 1Q24 | 1Q25 | YoY Change | | :--- | :--- | :--- | :--- | | **Monthly Active Users (MAU)** | 11.5 M | 14.3 M | +24.3% | | ** Transactions / MAU** | 36.0 | 52.1 | +44.5% | | **Revenues / MAU (S/, monthly)** | 3.4 | 6.2 | +80.4% | | ** Loans Disbursements (thousands)** | 472.4 | 3,097.1 | +555.7% | | **Total Income (S/ millions)** | 110.4 | 234.6 | +112.5% | - Yape's monetization is progressing, with monthly revenue per MAU (**S/6.2**) steadily increasing its lead over monthly expenses per MAU (**S/4.7**)[73](index=73&type=chunk) - The Payments business is the main income driver, representing **56% of Yape's revenue**. The Financial business, mainly through floating volumes and a growing lending portfolio, contributes **40%**[75](index=75&type=chunk)[76](index=76&type=chunk) [Integrating Sustainability](index=16&type=section&id=Integrating%20Sustainability) Credicorp approved a new Sustainability Strategy for 2025-2030, focusing on three pillars: Inclusion, Finance for the Future, and Trust. In 1Q25, key achievements included financially including 200,000 new people through BCP and Yape, reaching 2.7 million clients with inclusive insurance, and disbursing over US$ 430 million in sustainable financing - The new 2025-2030 Sustainability Strategy is built on three pillars: Inclusion (financial inclusion, education, healthcare access), Finance for the Future (support for MSMEs, sustainable finance), and Trust (promoting trust in Credicorp and the private sector)[85](index=85&type=chunk)[90](index=90&type=chunk) | Sustainability Indicator (1Q25) | Value | Note | | :--- | :--- | :--- | | **People financially included (cumulative since 2020)** | 6.0 million | BCP & Yape | | **Clients in inclusive insurance services** | 2.77 million | Pacifico | | **Loan balance for micro/small businesses** | S/ 11,629 million | Mibanco Peru | | **Disbursements of sustainable financing** | US$ 430 million | BCP Peru | [Analysis of 1Q25 Consolidated Results](index=17&type=section&id=Analysis%20of%201Q25%20Consolidated%20Results) A detailed analysis of Credicorp's consolidated financial results for 1Q25, examining performance across loan portfolios, deposits, income, expenses, and capital [Loan Portfolio](index=17&type=section&id=01%20Loan%20Portfolio) Total loans in average daily balances (ADB) grew 0.8% QoQ and 1.5% YoY, driven by short-term loans in Wholesale Banking and growth in Consumer and Mortgage segments. This growth was partially offset by declines in SME segments. The dollarization level of the loan portfolio increased slightly to 36.0% due to loan expansion in foreign currency, particularly in Wholesale Banking | Loan Segment (ADB) | QoQ Change | YoY Change | Key Driver | | :--- | :--- | :--- | :--- | | **Wholesale Banking** | +2.8% | +5.2% | Increased financing for working capital | | **Consumer** | +1.6% | +1.9% | Uptick in disbursements via Yape and BCP | | **Mortgage** | +0.7% | +3.9% | Increased demand due to favorable rates | | **Mibanco** | +0.7% | -8.3% | Stricter lending guidelines applied in 2024 | - Excluding the Bolivia accounting adjustment, loans measured in quarter-end balances contracted **0.7% QoQ** but rose **2.8% YoY**[95](index=95&type=chunk) - The dollarization level of total loans rose **45 bps QoQ to 36.0%**, driven by loan expansion in foreign currency within Wholesale Banking[102](index=102&type=chunk) [Deposits](index=20&type=section&id=02%20Deposits) Excluding the Bolivia accounting adjustment, total deposits grew 9.7% YoY, driven by a significant 16.9% increase in low-cost deposits, which now constitute 71.8% of the total. This reflects successful fund capturing and improved deposit mix management. The dollarization of deposits decreased, and Credicorp maintained its market leadership with a 41.3% share of low-cost deposits - YoY deposit growth was fueled by a **16.9% increase in low-cost deposits** (Demand + Savings), reflecting strong fund capture in a high-liquidity environment[108](index=108&type=chunk)[113](index=113&type=chunk) - The Loan-to-Deposit (L/D) ratio at Credicorp stood at **89.6%**. YoY, the L/D ratio dropped significantly at both BCP (by **565 bps**) and Mibanco (by **1873 bps**) due to strong deposit growth[121](index=121&type=chunk)[123](index=123&type=chunk) - Credicorp (BCP + Mibanco) leads the Peruvian market with a **41.3% market share of low-cost deposits** as of March 2025, an increase of **191 bps** from March 2024[128](index=128&type=chunk) [Interest-Earning Assets (IEA) and Funding](index=23&type=section&id=03%20Interest%20Earning%20Assets%20and%20Funding) Excluding the Bolivia adjustment, Interest-Earning Assets (IEA) grew 6.4% YoY, driven by higher liquidity (Cash and due from banks). Funding increased 6.7% YoY, primarily due to strong growth in low-cost deposits. QoQ, both IEA and funding were relatively stable, with a bond maturity at BCP being a key event | Balance Sheet Item (ex-Bolivia adj.) | QoQ Change | YoY Change | Key Driver | | :--- | :--- | :--- | :--- | | **Interest-Earning Assets (IEA)** | -0.1% | +6.4% | Growth in Cash and due from banks reflecting high liquidity | | **Funding** | -0.5% | +6.7% | Expansion in low-cost deposits | - The QoQ drop in funding was mainly due to a **US$ 700 million bond maturity** at BCP Stand-alone[135](index=135&type=chunk) [Net Interest Income (NII)](index=25&type=section&id=04%20Net%20Interest%20Income%20(NII)) NII rose 4.3% YoY, driven by lower funding costs, but fell 1.6% QoQ due to lower market rates impacting loan income. NIM contracted slightly to 6.22%. Notably, the Risk-adjusted NIM continued to improve, reaching a record high of 5.24%, reflecting better portfolio quality and lower provisions - Risk-adjusted NIM reached a record high of **5.24%**, an increase of **16 bps QoQ** and **39 bps YoY**, driven by a significant drop in provisions and cost of risk[139](index=139&type=chunk)[144](index=144&type=chunk) | Metric | 1Q25 Value | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **Net Interest Income (NII)** | S/ 3,572 million | -1.6% | +4.3% | | **Net Interest Margin (NIM)** | 6.22% | -12 bps | -8 bps | | **Cost of Funds** | 2.42% | -14 bps | -56 bps | - The YoY NII growth was primarily due to a reduction in interest expenses, reflecting lower market rates and an increased share of low-cost deposits in the funding mix[138](index=138&type=chunk)[142](index=142&type=chunk) [Portfolio Quality and Provisions](index=28&type=section&id=05%20Portfolio%20Quality%20and%20Provisions) Asset quality improved significantly in 1Q25, with the NPL ratio falling to 5.1% and the Cost of Risk dropping to 1.6%. This was driven by enhanced underwriting, a stronger economic backdrop, and specific events like client debt repayments and risk model recalibrations. Provisions decreased 21.7% QoQ, and the NPL coverage ratio strengthened to 107.4% - The improvement in portfolio quality is attributed to a cumulative impact of fortified underwriting, a stronger Peruvian economy, and one-time events such as risk model recalibrations and pension fund withdrawals boosting repayments[155](index=155&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) | Metric | 1Q25 Value | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **NPL Ratio** | 5.1% | -16 bps | -112 bps | | **Cost of Risk** | 1.6% | -44 bps | -66 bps | | **NPL Coverage Ratio** | 107.4% | +308 bps | +1395 bps | - QoQ, the decline in provisions was mainly driven by BCP Stand-alone, particularly in Credit Cards and Consumer due to a base effect from prior risk model calibrations and improved payment performance[157](index=157&type=chunk)[174](index=174&type=chunk) [Other Income](index=32&type=section&id=06%20Other%20Income) Other Income grew 21.4% YoY, significantly impacted by an extraordinary gain of S/236 million from the Empresas Banmedica acquisition. Excluding this gain, Other Income still rose 4.5% YoY, driven by a 15.1% increase in Other Core Income. This core growth was fueled by a 16.0% rise in Fee Income, largely from BCP Stand-alone and Yape's strong transactional dynamics - The acquisition of the remaining 50% of Empresas Banmedica generated an extraordinary gain of approximately **S/236 million**, recorded in Other Non-Core Income[193](index=193&type=chunk)[196](index=196&type=chunk) - Excluding the extraordinary gain, Other Income decreased **8.1% QoQ** but grew **4.5% YoY**. The YoY growth was driven by a **15.1% increase in Other Core Income**[193](index=193&type=chunk)[194](index=194&type=chunk) | BCP Stand-alone Fee Income (S/ millions) | 1Q24 | 1Q25 | YoY Change | | :--- | :--- | :--- | :--- | | **Yape** | 54 | 120 | +123.1% | | **Liability and Transactional Accounts** | 179 | 200 | +11.6% | | **Total BCP Fee Income** | 705 | 831 | +18.0% | [Insurance Underwriting Result and the Medical Services](index=36&type=section&id=07%20Insurance%20Underwriting%20Result%20and%20the%20Medical%20Services) The Insurance Underwriting Result increased 17.9% YoY and 5.3% QoQ, driven by an improved Reinsurance Result, particularly in the P&C business. Following the full acquisition of the Empresas Banmedica JV, the EPS business is now consolidated into the underwriting result and a new 'Medical Services Result' line has been created, though its impact was not material in 1Q25 - Following the acquisition of the remaining 50% of Empresas Banmédica, the EPS business is now consolidated into the Underwriting Insurance Result, and a new 'Medical Services Result' account has been created[223](index=223&type=chunk)[224](index=224&type=chunk) | Insurance Underwriting Result (S/ millions) | 1Q24 | 4Q24 | 1Q25 | | :--- | :--- | :--- | :--- | | **P&C** | 80.5 | 82.1 | 92.3 | | **Life** | 179.2 | 217.7 | 207.2 | | **Total** | 279.1 | 312.7 | 329.1 | - The **17.9% YoY growth** in the Insurance Underwriting Result was driven by an improvement in the Reinsurance Result (primarily in P&C) and growth in Insurance Service Income (mainly in EPS and P&C)[222](index=222&type=chunk)[226](index=226&type=chunk) [Operating Expenses](index=39&type=section&id=08%20Operating%20Expenses) Operating expenses increased 15.6% YoY, driven by both core business activities and innovation initiatives. Core business expenses at BCP Stand-alone rose due to higher variable compensation and headcount, as well as increased administrative costs for advertising and IT services to support digitalization. Expenses for innovation portfolio initiatives grew 17.5% YoY | Expense Category (S/ thousands) | 1Q24 | 1Q25 | YoY Change | | :--- | :--- | :--- | :--- | | **Salaries and employees benefits** | 1,107,069 | 1,361,690 | +23.0% | | **Administrative and general expenses** | 821,748 | 869,834 | +5.9% | | **Total Operating expenses** | 2,112,810 | 2,442,089 | +15.6% | - The YoY expense growth was driven by core businesses at BCP Stand-alone (higher variable compensation, advertising, and cloud/IT costs) and a **17.5% increase** in spending on innovation portfolio initiatives[233](index=233&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) [Operating Efficiency](index=41&type=section&id=09%20Operating%20Efficiency) The efficiency ratio deteriorated by 291 basis points YoY to 45.7%. This was a result of operating expenses growing at a faster pace than operating income, reflecting increased investments in disruptive initiatives at the corporate level and in core business growth at BCP Stand-alone | Subsidiary | Efficiency Ratio 1Q24 | Efficiency Ratio 1Q25 | YoY Change | | :--- | :--- | :--- | :--- | | **BCP Stand-alone** | 35.1% | 37.7% | +260 bps | | **Mibanco Peru** | 53.3% | 52.9% | -40 bps | | **Credicorp** | 42.8% | 45.7% | +291 bps | - The YoY deterioration in the efficiency ratio was driven by growth in operating expenses for disruptive initiatives and core business investments outpacing the growth in operating income[242](index=242&type=chunk)[244](index=244&type=chunk) [Regulatory Capital](index=42&type=section&id=10%20Regulatory%20Capital) Credicorp's capital position remains strong, with a Regulatory Capital Ratio 138% above the minimum. BCP Stand-alone's IFRS CET1 Ratio stood at 11.62%, aligned with its 11% target, while Mibanco's was 15.89%, also aligned with its 15% target. Both subsidiaries saw slight YoY declines in their CET1 ratios due to RWA growth and dividend payments, but remain comfortably capitalized - BCP Stand-alone's IFRS CET1 Ratio was **11.62%**, slightly down **24 bps YoY** due to higher Risk-Weighted Assets (RWAs) from loan growth, but remains aligned with the internal target of **11%**[246](index=246&type=chunk)[253](index=253&type=chunk) - Mibanco's IFRS CET1 Ratio was **15.89%**, down **18 bps YoY** due to dividend declarations, but remains aligned with its internal target of **15%**[247](index=247&type=chunk)[258](index=258&type=chunk) - At the holding company level, Credicorp's Regulatory Capital Ratio was **138% above the regulatory minimum**, demonstrating the group's financial solidity[248](index=248&type=chunk) [Economic Outlook](index=45&type=section&id=11%20Economic%20Outlook) The Peruvian economy showed strength in 1Q25, with GDP growing 3.9% YoY, driven by non-primary sectors. Inflation slowed to 1.3% YoY, prompting the Central Bank (BCRP) to cut its policy rate to 4.50%. The external position is robust, with a record trade surplus and appreciating currency, providing a favorable macroeconomic backdrop - Peru's GDP grew **3.9% YoY** in 1Q25, the third consecutive quarter around **4%**, supported by the recovery of formal employment and real wages[260](index=260&type=chunk)[269](index=269&type=chunk) - Annual inflation slowed to **1.3% YoY**, approaching the lower end of the BCRP's **1-3% target range**. In response, the BCRP lowered its policy rate by **25 bps to 4.50%** in May 2025[261](index=261&type=chunk)[272](index=272&type=chunk) | Peru Economic Forecast (2025) | Value | | :--- | :--- | | **Real GDP (% change)** | 3.2% | | **Inflation, end of period** | 2.3% | | **Reference Rate, end of period** | 4.25% | | **Fiscal balance (% GDP)** | -2.7% | [Appendix](index=49&type=section&id=12%20Appendix) The appendix provides supplementary information including detailed financial statements, loan portfolio quality data, regulatory capital figures, and a glossary of terms [Physical Point of Contact](index=51&type=section&id=12.1.%20Physical%20Point%20of%20Contact) This section provides information on Credicorp's physical points of contact [Loan Portfolio Quality](index=51&type=section&id=12.2.%20Loan%20Portfolio%20Quality) This section presents detailed data on the quality of the loan portfolio [Net Interest Income (NII)](index=55&type=section&id=12.3.%20Net%20Interest%20Income%20(NII)) This section provides detailed figures for Net Interest Income [Net Interest Margin (NIM) and Risk Adjusted NIM](index=55&type=section&id=12.4.%20Net%20Interest%20Margin%20(NIM)%20and%20Risk%20Adjusted%20NIM) This section details Net Interest Margin and Risk Adjusted Net Interest Margin [Regulatory Capital](index=56&type=section&id=12.5.%20Regulatory%20Capital) This section outlines Credicorp's regulatory capital position [Financial Statements and Ratios by Business](index=60&type=section&id=12.6.%20Financial%20Statements%20and%20Ratios%20by%20Business) This section provides financial statements and key ratios broken down by business segment [Credicorp Consolidated](index=60&type=section&id=12.6.1.%20Credicorp%20Consolidated) This section presents the consolidated financial statements for Credicorp [Credicorp Stand-alone](index=62&type=section&id=12.6.2.%20Credicorp%20Stand-alone) This section presents the stand-alone financial statements for Credicorp [BCP Consolidated](index=63&type=section&id=12.6.3.%20BCP%20Consolidated) This section presents the consolidated financial statements for BCP [BCP Stand-alone](index=65&type=section&id=12.6.4.%20BCP%20Stand-alone) This section presents the stand-alone financial statements for BCP [BCP Bolivia](index=67&type=section&id=12.6.5.%20BCP%20Bolivia) This section presents the financial statements for BCP Bolivia [Mibanco](index=68&type=section&id=12.6.6.%20Mibanco) This section presents the financial statements for Mibanco [Prima AFP](index=69&type=section&id=12.6.7.%20Prima%20AFP) This section presents the financial statements for Prima AFP [Grupo Pacifico](index=70&type=section&id=12.6.8.%20Grupo%20Pacifico) This section presents the financial statements for Grupo Pacifico [Investment Management and Advisory](index=71&type=section&id=12.6.9.%20Investment%20Management%20and%20Advisory) This section presents the financial statements for Investment Management and Advisory [Table of Calculations](index=72&type=section&id=12.7.%20Table%20of%20Calculations) This section provides a table detailing various financial calculations [Glossary of terms](index=73&type=section&id=12.8.%20Glossary%20of%20terms) This section defines key financial terms used in the report

Financial Data and Key Metrics Changes - The company reported a high Return on Equity (ROE) of 20.3%, boosted by extraordinary gains from the acquisition of a joint venture stake, while the operating ROE was 18.4% [10][20][51] - Total assets contracted by 2% due to a revaluation of Bolivia's balance sheet [20][46] - Net interest income increased by 4.3%, with a resilient Net Interest Margin (NIM) of 6.2% despite a year-over-year contraction in asset yields [22][54] Business Line Data and Key Metrics Changes - Loan growth was robust in wholesale banking and short-term loans, with an overall increase of 1.5% in average daily balances [21][12] - Non-performing loans (NPLs) contracted, with the NPL ratio standing at 5.1% [21][48] - Fee income grew by 16%, driven by transactional activity at Yape and BCP [22][50] Market Data and Key Metrics Changes - Peru's GDP grew by 3.9% year-over-year in Q1 2025, supported by private spending and low inflation [25][6] - Inflation remained within the Central Bank's target range at 1.7% year-over-year in April [26] - High-frequency economic indicators such as car sales and imports are growing rapidly, indicating a recovery in private consumption [25][26] Company Strategy and Development Direction - The company is focused on modernizing core systems, expanding digital capabilities, and enhancing client journeys across various business lines [10][14] - Sustainability is deeply integrated into the company's strategy, with initiatives aimed at financial inclusion and environmental risk management [14][103] - The company aims to achieve a structural ROE ambition of 18% by 2026 while expanding access and generating shareholder value [103] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Peru's macroeconomic fundamentals and the potential for growth despite global uncertainties [5][15] - The outlook for Peru's economy remains positive, with expectations of around 3% growth in 2025, assuming global recession risks are contained [15][56] - Management is closely monitoring global developments, including trade tensions and their potential impact on commodity prices [8][16] Other Important Information - The company announced a dividend payout of PEN 40 per share, reflecting strong solvency and support for long-term growth plans [13][24] - The company achieved 5.4% of recent adjusted revenues from new businesses, progressing towards a 10% target by 2026 [11][54] Q&A Session Summary Question: Guidance and ROE Expectations - Analyst inquired about the reasons for not updating guidance despite strong Q1 results and the potential for higher sustainable ROE levels [59] - Management indicated that while they expect to exceed current guidance, global uncertainties, particularly related to tariffs, are a concern [62][63] Question: Cost of Risk and Model Revisions - Analyst asked about the drivers behind the reduction in cost of risk and the potential for further model revisions [71] - Management confirmed that improvements in the macroeconomic environment and adjustments in credit policy have contributed to lower expected losses [74] Question: Loan Growth Dynamics - Analyst questioned the slow loan growth despite strong economic indicators and asset quality improvements [76] - Management explained that loan growth typically lags behind economic recovery and expressed confidence in future acceleration [81][86] Question: Sensitivity to Interest Rates - Analyst requested clarification on the company's sensitivity to interest rate changes [90] - Management provided details on the expected impact of a 100 basis point decline in rates on NIM, emphasizing limited risk [94] Question: Lending Opportunities through Yape - Analyst inquired about lending growth through the Yape platform and the focus on individual versus SME lending [96] - Management highlighted that individual lending is the current focus, with plans to expand into SME lending as capabilities develop [100]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 20.3%, boosted by extraordinary gains from the acquisition of a joint venture stake, while the operating ROE was 18.4% [9][19] - Total assets contracted by 2% due to a revaluation of Bolivia's balance sheet [19][44] - Net interest income increased by 4.3%, driven by lower interest expenses and a growing share of low-cost deposits [21][44] Business Line Data and Key Metrics Changes - Loan growth was robust at 1.5%, primarily in wholesale banking, with expectations for retail segments to accelerate [20][11] - Non-performing loans (NPLs) ratio improved to 5.1%, with a cost of risk falling to 1.6% [20][46] - Fee income rose by 16%, supported by increased transactional activity [21][44] Market Data and Key Metrics Changes - Peru's GDP grew by 3.9% in Q1 2025, indicating a strong economic recovery [23][14] - Inflation remained low at 1.7%, supporting private consumption [24] - High-frequency economic indicators, such as car sales and imports, showed rapid growth, reflecting a positive economic environment [23] Company Strategy and Development Direction - The company is focused on modernizing core systems and expanding digital capabilities to enhance client journeys across various business lines [9][12] - Sustainability is integrated into the company's strategy, with initiatives aimed at financial inclusion and environmental risk management [13][98] - The company aims to achieve a structural ROE of 18% by 2026 while expanding access to financial services [98] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Peru's macroeconomic fundamentals and the potential for growth despite global uncertainties [5][15] - The company is closely monitoring global developments, particularly trade tensions and their potential impact on commodity prices [7][15] - The outlook for Peru's economy remains positive, with expectations for continued growth supported by private investment and recovering real wages [14][25] Other Important Information - The company announced a dividend payout of PEN 40 per share, reflecting strong solvency and long-term growth plans [12][22] - A one-off gain of approximately $236 million was recorded due to the revaluation of a previously held stake [13] - The company is committed to enhancing its risk management capabilities through ongoing projects [12][46] Q&A Session Summary Question: Guidance Update - The management indicated that while current conditions suggest potential for higher ROE, global uncertainties, particularly related to trade, prevent immediate guidance updates [56][60] Question: Cost of Risk and Model Revisions - Management noted that improvements in the cost of risk are due to a positive macroeconomic environment and adjustments in credit models, with expectations for continued lower costs [67][70] Question: Loan Growth Acceleration - Management acknowledged a lag in loan growth recovery but expressed confidence in an upcoming acceleration due to improved economic conditions and increased lending activity [72][78] Question: Sensitivity to Interest Rates - The company provided insights on its sensitivity to interest rate changes, indicating a minor impact on NIM from potential rate cuts [84][87] Question: Lending Focus and Opportunities - The company is currently focusing on individual lending while also considering SME lending opportunities in the future [92][95]

Financial Performance Highlights - Credicorp achieved a robust ROE of 20.3% in 1Q25, or 18.4% excluding extraordinary income related to Empresas Banmedica acquisition[14, 112] - The innovation portfolio contributed 5.4% of risk-adjusted revenues in 1Q25, aiming for 10% by 2026[14, 114] - The efficiency ratio stood at 45.7% in 1Q25[14, 104] Key Financial Metrics - Risk-adjusted NIM was 5.24% in 1Q25, a 16 bps increase compared to 4Q24[14] - The NPL ratio improved to 5.1%, a decrease of 112 bps year-over-year[23] - The cost of risk decreased to 1.6%, a decrease of 66 bps year-over-year[23] Business Segment Performance - Universal Banking's ROE was 27.1% in 1Q25[44] - Yape generated 4.8% of Credicorp's risk-adjusted revenues in 1Q25, with over 14 million monthly active users (MAU)[55] - Mibanco Peru's ROE was 14.7% in 1Q25[62] Economic Context and Outlook - Peru's GDP grew approximately 4% year-over-year in 1Q25[26] - The company maintains its 2025 GDP growth guidance of around 3%[109] - The reference rate in Peru as of May 2025 was 4.50%[14]

Company Overview - Credicorp Ltd. is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama [4] - The company has a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [4] Upcoming Earnings Release - Credicorp will release its 1Q25 Earnings Report on May 15, 2025, after market close [1] - A webcast/conference call to discuss the results will take place on May 16, 2025, at 10:30 a.m. ET [1] Conference Call Details - The call will be hosted by key executives including the CEO, CFO, and other senior management [1] - Participants are encouraged to pre-register for the webcast to gain immediate access [2] - Dial-in options are available for those unable to pre-register, with specific toll-free and international numbers provided [3] Regulatory Filings - Credicorp filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC on April 25, 2025 [3] - The report includes audited consolidated financial statements for the years 2022, 2023, and 2024 under IFRS [3]

Core Insights - Credicorp (NYSE: BAP) is the holding company for BCP, which is the largest bank in Peru, maintaining a dominant market share and superior returns on equity over a long period [1] Company Overview - Credicorp operates BCP, the largest bank in Peru, which has sustained a dominant market position [1] - The company has demonstrated consistent superior returns on equity, indicating strong financial performance [1] Market Position - The dominant market share of BCP suggests that there is little indication of significant changes in its competitive position [1]

Core Points - Credicorp Ltd. has filed its Annual Report on Form 20-F for the year ended December 31, 2024, with the Securities and Exchange Commission [1] - The report includes audited consolidated financial statements for the years ended December 31, 2022, 2023, and 2024 under International Financial Reporting Standards (IFRS) [1] Company Overview - Credicorp Ltd. is the leading financial services holding company in Peru, with a diversified business portfolio organized into four primary lines: Universal Banking, Microfinance, Insurance and Pension Funds, and Investment Management and Advisory [3] - The company operates through various subsidiaries, including Banco de Crédito del Perú (BCP), Mibanco, Grupo Pacifico, and Credicorp Capital, and has a presence in Peru, Chile, Colombia, Bolivia, and Panama [3]

Core Points - Credicorp Ltd. declared a cash dividend of S/40.00 per share, totaling S/3,775,292,680.00, based on a net income of S/5,501,254,379.37 for the 2024 financial year [1][2] - The dividend will be paid on June 13, 2025, to shareholders of record on May 19, 2025, without withholding tax at source [1] - The cash dividend will be converted to US Dollars using the exchange rate published by the Peruvian Superintendency of Banks, Insurance and Pension Funds [2] Company Overview - Credicorp Ltd. is the leading financial services holding company in Peru, with a diversified business portfolio across Universal Banking, Microfinance, Insurance and Pension Funds, and Investment Management and Advisory [3] - The company operates through various subsidiaries, including Banco de Crédito del Perú, Mibanco, Grupo Pacifico, and Credicorp Capital, with a presence in Peru, Chile, Colombia, Bolivia, and Panama [3]