Core Viewpoint - The article compares Credicorp (BAP) and National Australia Bank Ltd. (NABZY) to determine which stock presents a better undervalued investment opportunity for investors [1]. Group 1: Company Rankings and Performance - Credicorp has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to National Australia Bank Ltd., which has a Zacks Rank of 4 (Sell) [3]. - BAP has seen a stronger improvement in its earnings outlook than NABZY recently, making it more appealing to investors [3]. Group 2: Valuation Metrics - BAP has a forward P/E ratio of 9.93, significantly lower than NABZY's forward P/E of 16.07, suggesting BAP may be undervalued [5]. - The PEG ratio for BAP is 0.65, while NABZY's PEG ratio is much higher at 4.13, indicating BAP's expected earnings growth is more favorable [5]. - BAP's P/B ratio stands at 1.71, compared to NABZY's P/B ratio of 1.78, further supporting BAP's valuation attractiveness [6]. Group 3: Value Grades - BAP has a Value grade of B, while NABZY has a Value grade of C, indicating that BAP is perceived as a better value investment at this time [7].

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Credicorp (BAP) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Credicorp is a member of our Finance group, which includes 871 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, ...

Group 1 - Credicorp Ltd. has announced the schedule for its 2025 Quarterly Earnings Releases, which will be available on its website [1] - The dates for the Earnings Release Reports are as follows: 1Q25 on May 15, 2025; 2Q25 on August 14, 2025; 3Q25 on November 13, 2025; and 4Q25 on February 12, 2026 [1] - Conference Call details will be provided 15 calendar days prior to each Earnings Release [1] Group 2 - Credicorp Ltd. is the leading financial services holding company in Peru, with operations in Chile, Colombia, and Bolivia [2] - The company has a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [2]

Core Viewpoint - The analysis compares two financial institutions, Credicorp (BAP) and Nu Holdings Ltd. (NU), to determine which stock presents a better value opportunity for investors seeking undervalued stocks [1]. Valuation Metrics - Credicorp (BAP) has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Nu Holdings Ltd. (NU), which has a Zacks Rank of 3 (Hold) [3]. - BAP's forward P/E ratio is 10.01, significantly lower than NU's forward P/E of 32.80, suggesting that BAP may be undervalued relative to NU [5]. - The PEG ratio for BAP is 0.65, while NU's PEG ratio is 0.66, indicating similar expected earnings growth rates but a more attractive valuation for BAP [5]. - BAP has a P/B ratio of 1.72, which is much lower than NU's P/B ratio of 8.44, further supporting the argument that BAP is undervalued [6]. Investment Grades - Based on various valuation metrics, BAP holds a Value grade of B, while NU has a Value grade of D, highlighting BAP's superior valuation profile [7].

Peru may not be the fastest-growing credit market in Latin America, but as I've stressed before (see Credicorp: Stay Upbeat On Peru's Premier Financial Group ), its highly concentrated banking system is among the region's most profitable. Credicorp (Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not recei ...

Core Insights - Emerging market stocks present opportunities for investors due to their inefficiencies compared to developed markets, allowing for potential mispricing and undervalued companies [1][2] Group 1: Emerging Market Overview - Investing in emerging markets is challenging due to cultural differences, financial reporting standards, and geopolitical uncertainties [2] - Understanding global trends can aid investors in identifying businesses that meet demand in emerging markets [2] Group 2: Company Highlights - **Nu (NYSE: NU)**: A Brazilian fintech company that has provided over 60% return in 2024, operating entirely online with services including banking, credit cards, and investments [3][4] - Nu's customer base grew from 3 million in 2017 to 110 million by Q3 2024, with revenue growth exceeding 100% in 2022 and 2023, though it has decelerated to 56% in Q3 2024 [4][5] - **Qufi Technology (NASDAQ: QFIN)**: A Chinese consumer finance firm that has seen a total return of 135% in 2024, with a 3.3% dividend yield [6][8] - Qufi's revenue growth has slowed to 2% in Q3 2024, but adjusted net income increased by 55% year-over-year [8][9] - **Credicorp (NYSE: BAP)**: A diversified financial services firm in Peru, providing a total return of 42% in 2024, with a significant dividend yield of 17% [10][11] - Credicorp's net income grew over 21% in Q3 2024, with potential for growth in digital finance as cash transactions remain prevalent in Peru [11][12]

Core Viewpoint - The comparison between Credicorp (BAP) and ICICI Bank Limited (IBN) indicates that BAP currently offers better value for investors based on various financial metrics and outlooks [1][3]. Valuation Metrics - Credicorp has a Zacks Rank of 2 (Buy), while ICICI Bank has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for BAP [3]. - BAP's forward P/E ratio is 9.77, significantly lower than IBN's forward P/E of 19.67, indicating that BAP may be undervalued [5]. - The PEG ratio for BAP is 0.63, while IBN's PEG ratio is 2, further supporting BAP's valuation advantage as it considers expected earnings growth [5]. - BAP has a P/B ratio of 1.67 compared to IBN's P/B of 3, highlighting BAP's better market value relative to its book value [6]. - Based on these metrics, BAP holds a Value grade of B, while IBN has a Value grade of C, reinforcing BAP's position as the superior value option [6].

[Operating and Financial Highlights](index=2&type=section&id=Operating%20and%20Financial%20Highlights) Credicorp reported record **S/1,524 million** net income in 3Q24, maintaining **~17% ROE** guidance and highlighting **13 million** Yape MAU - Credicorp achieved a record 3Q24 net income of **S/1,524 million**, supported by margin strengthening, improved Cost of Risk (CoR), diversified non-interest revenue, and cost control, maintaining its **2024 ROE guidance of ~17%**[4](index=4&type=chunk) 3Q24 Key Financial and Operational Highlights | Metric | 3Q24 Value (S/ million) | QoQ Change | YoY Change | Additional Detail | |:---|:---|:---|:---|:---| | Net Income (attributable to Credicorp) | 1,523.8 | +13.8% | +21.3% | Record high | | ROE | 18.5% | - | Up from 16.2% in 3Q23 | | Total Loans (ADB) | - | -1.2% | -1.2% | Decline due to corporate loan amortizations, stricter Mibanco origination, and BCP Retail Banking loan amortizations | | Total Deposits | - | +1.6% | +4.0% | Driven by low-cost deposits (69.7% of total) | | NPL Ratio | 5.9% | -12 bps | - | Fueled by improved risk management and debt relief | | Provisions | - | -20.6% | - | Reflects improved payment performance and risk management | | Cost of Risk (CoR) | 2.4% | -64 bps | -15 bps | | | Core Income | - | +0.8% | +9.8% | Excl. BCP Bolivia: +3.7% QoQ, driven by lower funding cost and higher fee income | | Insurance Underwriting Results | - | -7.5% | -11.8% | Less favorable Reinsurance Results in P&C | | Yape Monthly Active Users (MAU) | 13 million | - | - | Generating 44 transactions/month, monthly revenues S/4.9, costs S/4.3 | | Efficiency Ratio (9M24) | 44.6% | - | Improved 50 bps YoY | Operating expenses up 8.8% YTD, disruptive initiatives up 28.1% YoY | | BCP IFRS CET1 Ratio | 13.4% | +137 bps | - | Strong capital base | | Mibanco IFRS CET1 Ratio | 17.9% | +121 bps | - | Strong capital base | | Special Dividend Paid (Oct 18, 2024) | S/11 per share | - | - | Payout ratio 75.3% for the year | | Tenpo Bank Chile | - | - | - | Received provisional authorization certificate (Oct 25, 2024) | | Empresas Banmedica Acquisition | - | - | - | Agreement to acquire 50% stake in JV (Nov 1, 2024), expected to be accretive | [Senior Management Quotes](index=4&type=section&id=Senior%20Management%20Quotes) This section presents key statements and insights from Credicorp's senior management on performance and strategic direction [Third Quarter 2024 Earnings Conference Call](index=5&type=section&id=Third%20Quarter%202024%20Earnings%20Conference%20Call) Credicorp Ltd. will host its 3Q24 Earnings Conference Call on November 8, 2024, at 9:30 am E.T., featuring senior management and accessible via webcast - Credicorp Ltd. will host its Third Quarter 2024 Earnings Conference Call on Friday, November 8th, 2024, at 9:30 am E.T. (9:30 am Lima, Perú)[11](index=11&type=chunk) - The call will be hosted by Gianfranco Ferrari (CEO), Alejandro Perez Reyes (CFO), Francesca Raffo (Chief Innovation Officer), Cesar Rios (Chief Risk Officer), Carlos Sotelo (Mibanco CFO), and the Investor Relations Team[11](index=11&type=chunk) - Participants can pre-register for a listen-only webcast or dial in using provided numbers, with the webcast archived for one year on the investor relations website[12](index=12&type=chunk)[13](index=13&type=chunk) [Summary of Financial Performance and Outlook](index=6&type=section&id=Summary%20of%20Financial%20Performance%20and%20Outlook) Credicorp's 3Q24 performance featured record net income and strong ROE, driven by improved NII, NIM, and reduced provisions, alongside a strengthened capital base [Loans in Average Daily Balances (ADB)](index=6&type=section&id=Loans%20in%20Average%20Daily%20Balances%20(ADB)) Total loans (ADB) declined **1.2%** QoQ and YoY in 3Q24 due to amortizations and stricter lending, partially offset by SME-Business and Mortgage growth - Total loans (ADB) declined **1.2%** QoQ to S/140,574 million, primarily due to increased amortizations of long-term Corporate Banking loans, stricter lending guidelines at Mibanco, and higher loan amortizations in Consumer and Credit Cards[14](index=14&type=chunk) - YoY, total loans also fell **1.2%**, driven by similar factors including Mibanco's stricter credit guidelines, increased amortizations in Middle Market Banking and SME-Pyme Government Program loans, and a decline in Consumer loans[15](index=15&type=chunk) - The decline was partially offset by growth in SME-Business and Mortgage loans QoQ, and Mortgage and BCP Bolivia loans YoY[14](index=14&type=chunk)[15](index=15&type=chunk) [Deposits](index=6&type=section&id=Deposits) Credicorp's deposit base expanded **1.6%** QoQ and **4.0%** YoY, driven by low-cost deposits, now **69.7%** of total, benefiting from pension fund inflows - The deposit base expanded **1.6%** QoQ and **4.0%** YoY, mainly driven by sustained growth in Low-Cost Deposits (Demand and Savings balances)[16](index=16&type=chunk) - Low-cost deposits accounted for **69.7%** of total deposits at quarter-end, benefiting from increased financial system liquidity due to pension fund withdrawals[16](index=16&type=chunk) BCP Liquidity Coverage Ratio (LCR) as of 3Q24 | Currency | Regulatory Standard | Internal Standard | |:---|:---|:---| | PEN (30 days) | 167.6% | 139.9% | | USD (30 days) | 187.1% | 141.1% | [Net Interest Income (NII) and Margin (NIM)](index=6&type=section&id=Net%20Interest%20Income%20(NII)%20and%20Margin%20(NIM)) Net Interest Income (NII) increased **3.5%** QoQ and **10.3%** YoY, driven by lower interest expenses from low-cost deposits, improving NIM to **6.43%** - NII rose **3.5%** QoQ and **10.3%** YoY, mainly driven by a decrease in Interest and Similar Expenses due to the increasing share of low-cost deposits in the funding mix[18](index=18&type=chunk)[19](index=19&type=chunk) - NIM stood at **6.43%** at quarter-end, up from 6.33% in 2Q24, and rose **32 bps** YoY, reflecting a low-cost funding advantage and disciplined interest rate management[4](index=4&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Portfolio Quality and Cost of Risk](index=7&type=section&id=Portfolio%20Quality%20and%20Cost%20of%20Risk) Credicorp's NPL balance decreased **4.8%** QoQ, reducing the NPL ratio to **5.9%**, with provisions down **20.6%** QoQ, leading to a **2.4%** Cost of Risk - The NPL balance dropped **4.8%** QoQ and **3.5%** YoY, primarily driven by BCP and Mibanco, due to debt repayment, tightened origination guidelines, and improved collections[22](index=22&type=chunk)[23](index=23&type=chunk) - The NPL ratio decreased **12 bps** QoQ and **11 bps** YoY, closing at **5.9%** at quarter-end[24](index=24&type=chunk) - Provisions declined **20.6%** QoQ and **5.4%** YoY, reflecting improved customer payment performance and risk management measures at BCP Retail Banking and Mibanco[25](index=25&type=chunk)[26](index=26&type=chunk) - The Cost of Risk (CoR) closed at **2.4%**, down **64 bps** QoQ and **15 bps** YoY, with the NPL Coverage Ratio at **98.7%**[8](index=8&type=chunk)[26](index=26&type=chunk) [Other income](index=8&type=section&id=Other%20income) Other Income was impacted by BCP Bolivia regulatory changes, but Other Core Income rose **3.8%** QoQ and **18.7%** YoY, driven by card usage, Yape, and Credicorp Capital fees - Other Income was impacted by regulatory changes in foreign transfers at BCP Bolivia[29](index=29&type=chunk) - Excluding BCP Bolivia, Other Core Income increased **3.8%** QoQ, driven by increased use of debit and credit cards and higher Yape transaction volumes at BCP[29](index=29&type=chunk) - YoY, Other Core Income rose **18.7%**, also supported by Credicorp Capital's increased Fee Income from Capital Markets and Wealth Management businesses[29](index=29&type=chunk) [Insurance Underwriting Result](index=8&type=section&id=Insurance%20Underwriting%20Result) The Insurance Underwriting Result decreased **7.5%** QoQ and **11.8%** YoY, driven by P&C reinsurance deterioration and increased Life Insurance service expenses - The Insurance Underwriting Result fell **7.5%** QoQ and **11.8%** YoY[30](index=30&type=chunk) - This decline was mainly driven by a deterioration in the Reinsurance Result in P&C and an uptick in Service Expenses for Life Insurance[30](index=30&type=chunk) - YTD, the Insurance Underwriting Result decreased **4.1%**, primarily due to a deterioration in the Reinsurance Result, particularly in P&C[31](index=31&type=chunk) [Efficiency](index=8&type=section&id=Efficiency) Credicorp's Efficiency Ratio improved **50 bps** YoY to **44.6%** in 9M24, as Operating Income growth outpaced expense expansion, with disruptive initiatives growing **28.1%** - The Efficiency Ratio improved **50 bps** YoY to **44.6%** in 9M24[8](index=8&type=chunk)[32](index=32&type=chunk) - Operating expenses increased **8.8%** YTD, with disruptive initiatives at Credicorp accounting for **12.0%** of the total and growing **28.1%** YoY[8](index=8&type=chunk)[32](index=32&type=chunk) - Operating Income increased **9.4%** YTD, contributing to the improved efficiency[32](index=32&type=chunk) [Net Income attributable to Credicorp](index=9&type=section&id=Net%20Income%20attributable%20to%20Credicorp) Net income attributable to Credicorp reached a record **S/1,523.8 million** in 3Q24, up **13.8%** QoQ, resulting in **18.5%** ROE Net Income and Equity Performance (3Q24) | Metric | 3Q24 Value (S/ million) | QoQ Change | YoY Change | |:---|:---|:---|:---| | Net Income attributable to Credicorp | 1,523.8 | +13.8% | +23.1% | | Net Shareholders' Equity | 33,463 | +3.2% | +7.0% | | ROE | 18.5% | - | - | [Financial Overview](index=10&type=section&id=Financial%20Overview) Credicorp's 3Q24 overview shows robust net profit growth to **S/1,523.8 million** and **18.5%** ROAE, driven by NII, NIM, strong capital, and improved efficiency Credicorp Ltd. Key Financials (3Q24 vs. 2Q24 & 3Q23) | Metric (S/ 000) | 3Q23 | 2Q24 | 3Q24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Net interest, similar income and expenses | 3,254,043 | 3,468,464 | 3,590,750 | 3.5% | 10.3% | | Provision for credit losses on loan portfolio, net of recoveries | (917,642) | (1,093,371) | (868,081) | -20.6% | -5.4% | | Net interest, similar income and expenses, after provision for credit losses on loan | 2,336,401 | 2,375,093 | 2,722,669 | 14.6% | 16.5% | | Other income | 1,402,603 | 1,661,479 | 1,621,282 | -2.4% | 15.6% | | Insurance underwriting result | 330,900 | 315,500 | 291,775 | -7.5% | -11.8% | | Total expenses | (2,350,469) | (2,465,354) | (2,524,166) | 2.4% | 7.4% | | Profit before income tax | 1,719,435 | 1,886,718 | 2,111,560 | 11.9% | 22.8% | | Net profit attributable to Credicorp | 1,238,173 | 1,339,096 | 1,523,788 | 13.8% | 23.1% | | Net income / share (S/) | 15.5 | 16.8 | 19.1 | 13.8% | 23.1% | | Dividends per Share (S/) | 25.0 | 35.0 | 11.0 | -68.6% | -56.0% | | Loans | 145,129,260 | 146,946,546 | 142,568,785 | -3.0% | -1.8% | | Deposits and obligations | 148,471,535 | 151,971,984 | 154,435,451 | 1.6% | 4.0% | | Net equity | 31,267,592 | 32,413,767 | 33,462,591 | 3.2% | 7.0% | Credicorp Ltd. Profitability and Quality Ratios (3Q24 vs. 2Q24 & 3Q23) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Net interest margin | 6.11% | 6.33% | 6.43% | 10 bps | 32 bps | | Risk-adjusted Net interest margin | 4.45% | 4.40% | 4.93% | 53 bps | 48 bps | | Funding cost | 3.15% | 2.86% | 2.68% | -18 bps | -47 bps | | ROAE | 16.2% | 16.2% | 18.5% | 234 bps | 235 bps | | ROAA | 2.1% | 2.2% | 2.4% | 26 bps | 35 bps | | NPL ratio | 6.0% | 6.0% | 5.9% | -12 bps | -11 bps | | Cost of risk | 2.5% | 3.0% | 2.4% | -64 bps | -15 bps | | Coverage ratio of NPLs | 93.0% | 95.0% | 98.7% | 364 bps | 565 bps | | Efficiency ratio | 46.3% | 44.9% | 45.2% | 29 bps | -112 bps | | BCP CET1 Ratio | 13.04% | 12.05% | 13.42% | 137 bps | 38 bps | | Mibanco CET1 Ratio | 17.56% | 16.73% | 17.94% | 121 bps | 38 bps | [Credicorp's Strategy Update](index=12&type=section&id=Credicorp's%20Strategy%20Update) Credicorp's strategy focuses on technology and disruptive initiatives for client experience and market expansion, targeting **18% ROE** and **10%** risk-adjusted income from new models by 2026 [Credicorp's Strategy](index=12&type=section&id=Credicorp's%20Strategy) Credicorp's strategy involves technology investment and disruptive initiatives to expand TAM and generate new income, targeting **18% ROE** and **10%** risk-adjusted income from new models by 2026 - Credicorp is investing in technology and disruptive initiatives to expand its TAM, generate new income sources, and efficiently capture market opportunities, aiming to decouple from macroeconomic environments[50](index=50&type=chunk) - The strategy focuses on providing the best client experience, enhancing digital and analytical capabilities, and becoming an omnichannel financial services company[51](index=51&type=chunk) - Credicorp aims to achieve a sustainable **ROE of 18%** and generate **10%** of its risk-adjusted income through new business models by 2026[52](index=52&type=chunk) Main KPIs for Credicorp's Traditional Business Transformation (3Q24) | KPI | Subsidiary | 3Q23 | 2Q24 | 3Q24 | |:---|:---|:---|:---|:---| | Digital Clients | BCP | 62% | 72% | 74% | | Digital monetary transactions | BCP | 76% | 83% | 85% | | Transactional cost by unit | BCP | 0.07 | 0.04 | 0.04 | | Disbursements through leads | Mibanco | 74% | 68% | 66% | | Disbursements through alternative channels | Mibanco | 15% | 23% | 23% | | Mibanco Productivity (loans disbursed/relationship managers) | Mibanco | 22.1 | 21.9 | 23.6 | | Cashless transactions | BCP | 55% | 64% | 66% | | Mobile Banking rating iOS | BCP | 4.7 | 4.8 | 4.8 | | Mobile Banking rating Android | BCP | 4.6 | 4.6 | 4.7 | | Digital sales | BCP | 58% | 66% | 65% | [Disruptive Initiatives: Yape](index=13&type=section&id=Disruptive%20Initiatives%3A%20Yape) Yape reached **13.0 million** MAU in 3Q24, with **44** monthly transactions per user and **S/4.9** monthly income, targeting **16.5 million** users by 2026 - Yape reached **13.0 million** monthly active users (MAU) in 3Q24, with average monthly transactions per MAU at **44**[56](index=56&type=chunk) - Monthly income and cost per active yapero were **S/4.9** and **S/4.2**, respectively, in 3Q24[56](index=56&type=chunk) - Yape's aspirations include reaching **16.5 million** users and **S/600 billion** in transactions per year by 2026[56](index=56&type=chunk) Yape's Main KPIs (3Q24 vs. 2Q24 & 3Q23) | KPI | 3Q23 | 2Q24 | 3Q24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Monthly Active Users (MAU) (millions) | 9.8 | 12.3 | 13.0 | 5.9% | 32.5% | | Transactions (millions) | 794.6 | 1,400.7 | 1,664.2 | 18.8% | 109.4% | | Monthly Transactions / MAU | 29.1 | 40.0 | 44.1 | 10.3% | 51.9% | | Monthly Revenues / MAU | 2.9 | 4.1 | 4.9 | 18.4% | 69.8% | | Monthly Expenses / MAU | 3.8 | 4.0 | 4.2 | 6.0% | 11.7% | | Total Payment Volume (TPV) (S/ billion) | 37.3 | 62.1 | 76.8 | 23.7% | 105.9% | | Loans Disbursements (thousands) | 228.4 | 702.2 | 1,294.9 | 84.4% | 466.9% | | Gross Merchant Volume (GMV) (S/ million) | 30.3 | 69.6 | 112.9 | 62.3% | 272.3% | Yape's Main Financial KPIs (3Q24 vs. 2Q24 & 3Q23) | Financial KPI (S/ millions) | 3Q23 | 2Q24 | 3Q24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---|\ | Net Interest Income | 46.1 | 60.3 | 75.0 | 24.3% | 62.5% | | Net Fee Income | 36.4 | 83.5 | 114.7 | 37.4% | 215.0% | | Total Income | 82.6 | 143.8 | 189.7 | 31.9% | 129.8% | | Total Expenses | (107.4) | (139.2) | (161.5) | 16.0% | 50.4% | - Payments business holds the largest share of Yape's total income (**56%** in 3Q24), boosted by Yape businesses, Bill payments, and QR code payments[61](index=61&type=chunk) - Financial business contributed **40%** of total income, driven by Yape loans[61](index=61&type=chunk) - Marketplace income, led by Yape promos, represented **4%** of total income[61](index=61&type=chunk) [Integrating Sustainability in Our Businesses](index=15&type=section&id=Integrating%20Sustainability%20in%20Our%20Businesses) Credicorp integrates sustainability, focusing on environmental, financial inclusion, and education, with **5.3 million** people included and **US$1,101 million** in sustainable loans in 3Q24 - Credicorp formally adhered to PCAF (Partnership for Carbon Accounting Financials) to standardize and disclose financed emissions measurements, with BCP Bolivia completing its first measurement and Pacífico Seguros beginning to measure its footprint[64](index=64&type=chunk) - BCP disbursed **US$1,101 million** in sustainable loans as of September 2024, including its first Sustainability Linked Loan (SLL) to Compañía de Minas Buenaventura[64](index=64&type=chunk) - BCP and Yape financially included **5.3 million** people, with **331 thousand** people obtaining their first loan through Yape (**43%** women)[63](index=63&type=chunk) - BCP helped over **257 thousand** clients improve financial knowledge, and Mibanco Perú trained over **273 thousand** clients through its Basic Digital Advisory Program[65](index=65&type=chunk) Progress on Sustainability Initiatives (3Q24) | Initiative | Company | 4Q22 | 4Q23 | 3Q24 | |:---|:---|:---|:---|:---| | Financially included through BCP and Yape (cumulative since 2020) | BCP | 2.5 million | 3.8 million | 5.3 million | | Stock of inclusive insurance policies | Pacífico Seguros | 2.6 million | 3.2 million | 3.3 million | | Trained through online courses via ABC at BCP (YTD) | BCP | 310.3 thousand | 614.1 thousand | 435.1 thousand | | Young people trained through ABC of Pension Culture (YTD) | Prima AFP | 61.0 thousand | 138.1 thousand | 390 thousand | | Clients trained in FE through Mibanco "Progress Academy" (YTD) | Mibanco Perú | 251.2 thousand | 413.3 thousand | 304.4 thousand | | Percentage of women banked on the asset side (loans) | Mibanco Perú | 56.0% | 55.9% | 62.4% | | SME-Pymes financially included through loans (YTD) | BCP | 49.7 thousand | 33.8 thousand | 31.2 thousand | [01 Loan Portfolio](index=17&type=section&id=01%20Loan%20Portfolio) Credicorp's total loan portfolio (ADB) declined **1.2%** QoQ and YoY due to repayments and stricter lending, partially offset by SME-Business and Mortgage growth [1.1. Loans](index=17&type=section&id=1.1.%20Loans) Total loans (ADB) decreased **1.2%** QoQ and YoY due to higher amortizations and stricter lending, partially offset by SME-Business and Mortgage loan growth - Total loans in average daily balances (ADB) fell **1.2%** QoQ (-0.7% FX Neutral), primarily due to increased repayments of long-term loans in Corporate Banking, stricter lending guidelines at Mibanco, and higher loan amortizations in Consumer and Credit Cards[70](index=70&type=chunk)[73](index=73&type=chunk) - YoY, total loans in ADB also fell **1.2%** (-1.4% FX Neutral), driven by similar factors including tighter lending guidelines at Mibanco, increased repayments in Middle Market Banking, and amortizations of Government Program loans in SME-Pyme[71](index=71&type=chunk)[73](index=73&type=chunk) - The decline was partially offset by growth in SME-Business and Mortgage loan balances QoQ, and Mortgage and BCP Bolivia loans YoY[70](index=70&type=chunk)[73](index=73&type=chunk)[79](index=79&type=chunk) Total Loans by Segment (Average Daily Balances, S/ millions) | Segment | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | % Part. in total loans (Sep 24) | |:---|:---|:---|:---|:---|:---|:---| | BCP Stand-alone | 115,851 | 116,450 | 115,569 | -0.8% | -0.2% | 82.2% | | Wholesale Banking | 52,796 | 53,157 | 52,257 | -1.7% | -1.0% | 37.2% | | Corporate | 31,134 | 31,879 | 31,108 | -2.4% | -0.1% | 22.1% | | Middle - Market | 21,662 | 21,278 | 21,148 | -0.6% | -2.4% | 15.0% | | Retail Banking | 63,055 | 63,293 | 63,312 | 0.0% | 0.4% | 45.0% | | SME - Business | 7,292 | 7,121 | 7,356 | 3.3% | 0.9% | 5.2% | | SME - Pyme | 16,549 | 16,295 | 16,184 | -0.7% | -2.2% | 11.5% | | Mortgage | 20,712 | 21,432 | 21,606 | 0.8% | 4.3% | 15.4% | | Consumer | 12,654 | 12,466 | 12,319 | -1.2% | -2.7% | 8.8% | | Credit Card | 5,848 | 5,978 | 5,847 | -2.2% | 0.0% | 4.2% | | Mibanco | 14,121 | 12,815 | 12,199 | -4.8% | -13.6% | 8.7% | | BAP's total loans | 142,219 | 142,261 | 140,574 | -1.2% | -1.2% | 100.0% | [Evolution of Loan Dollarization](index=18&type=section&id=Evolution%20of%20Loan%20Dollarization) The dollarization level of total loans increased **4 bps** QoQ to **35.4%** and **117 bps** YoY, driven by reduced local currency loans and slight foreign currency growth - The dollarization level of total loans rose **4 bps** QoQ to **35.4%** at the end of September 2024, driven by a drop in LC loan balances, primarily from Mibanco and Wholesale Banking[77](index=77&type=chunk) - YoY, the dollarization level for the total portfolio rose **117 bps**, due to a **2.9%** decline in total LC loans and a **1.5%** growth in total FC loans[78](index=78&type=chunk) Total Loans by Currency (Average Daily Balances, S/ millions) | Currency | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | % Part. by currency (Sep 24) | |:---|:---|:---|:---|:---|:---|:---| | Local Currency (LC) | 93,529 | 91,954 | 90,805 | -1.2% | -2.9% | 64.6% | | Foreign Currency (FC) (US$ millions) | 13,166 | 13,335 | 13,367 | 0.2% | 1.5% | 35.4% | [02 Deposits](index=20&type=section&id=02%20Deposits) Credicorp's total deposits grew **1.6%** QoQ and **4.0%** YoY, fueled by low-cost deposits (now **69.7%** of total), with the L/D ratio decreasing due to loan contraction [Deposits Overview](index=20&type=section&id=Deposits%20Overview) Total deposits expanded **1.6%** QoQ and **4.0%** YoY, driven by low-cost deposits (up **3.8%** QoQ), fueled by pension fund withdrawals, partially offset by Time Deposit decreases - Total deposits expanded **1.6%** QoQ (+3.2% FX neutral) and **4.0%** YoY (+5.1% FX neutral), primarily driven by growth in low-cost deposits[84](index=84&type=chunk)[86](index=86&type=chunk) - Low-cost deposits (Demand and Savings) increased **3.8%** QoQ and **13.9%** YoY, accounting for **69.7%** of total deposits at quarter-end, reflecting a significant competitive advantage[85](index=85&type=chunk)[86](index=86&type=chunk) - The growth in low-cost deposits was mainly due to inflows from pension fund withdrawals and transactional deposit captures, partially offset by a **2.3%** QoQ and **13.6%** YoY reduction in Time Deposits[84](index=84&type=chunk)[86](index=86&type=chunk) Deposits by Type (S/ 000) | Deposit Type | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Demand deposits | 45,120,127 | 50,657,031 | 53,149,144 | 4.9% | 17.8% | | Saving deposits | 49,395,543 | 53,015,745 | 54,474,960 | 2.8% | 10.3% | | Time deposits | 49,213,763 | 43,504,883 | 42,514,849 | -2.3% | -13.6% | | Severance indemnity deposits | 3,245,358 | 3,358,408 | 2,989,705 | -11.0% | -7.9% | | Low-cost deposits | 94,515,670 | 103,672,776 | 107,624,104 | 3.8% | 13.9% | | Total Deposits and obligations | 148,471,535 | 151,971,984 | 154,435,451 | 1.6% | 4.0% | [Dollarization Level of Deposits](index=21&type=section&id=Dollarization%20Level%20of%20Deposits) The dollarization level of total deposits remained stable QoQ at **48.0%** and decreased **86 bps** YoY, influenced by increased local currency savings and demand deposits - The dollarization level of Total Deposits held steady QoQ at **48.0%** at the end of September 2024, below the 2-year average of 49.6%[89](index=89&type=chunk) - This stability was driven by an increase in LC Savings and Demand Deposits from pension fund withdrawals, offset by a drop in LC Time Deposits due to easing interest rates[89](index=89&type=chunk) - YoY, the dollarization level fell **86 bps** due to growth in LC Savings and Demand Deposits[90](index=90&type=chunk) [Loan / Deposit Ratio (L/D ratio)](index=21&type=section&id=Loan%20%2F%20Deposit%20Ratio%20(L%2FD%20ratio)) Credicorp's L/D ratio stood at **92.3%** in 3Q24, dropping significantly at BCP and Mibanco due to declining loans and growing low-cost deposits - The L/D ratio at Credicorp stood at **92.3%** in 3Q24[97](index=97&type=chunk) - QoQ, the L/D ratio dropped **510 bps** at BCP and **843 bps** at Mibanco, driven by a drop in loan balances and growth in low-cost deposits in LC[95](index=95&type=chunk) - YoY, the L/D ratio dropped **763 bps** at BCP and **2292 bps** at Mibanco, reflecting similar drivers of loan balance reduction and deposit growth[96](index=96&type=chunk) [Market Share of Deposits in the Peruvian Financial System](index=23&type=section&id=Market%20Share%20of%20Deposits%20in%20the%20Peruvian%20Financial%20System) BCP and Mibanco maintained total deposit market shares of **31.7%** and **2.6%** in August 2024, with Credicorp's low-cost deposit share at **41.0%** - At the end of August 2024, BCP and Mibanco held total deposit market shares of **31.7%** and **2.6%** respectively, with BCP leading the market[101](index=101&type=chunk) - Credicorp's (BCP + Mibanco) share in the market for low-cost deposits stood at **41.0%** at quarter-end, an increase of **12 bps** YoY[103](index=103&type=chunk) - BCP's market share for Time Deposits fell **344 bps** to **17.9%** at the end of August 2024, as Time Deposits across the system rose but fell at BCP Stand-alone[102](index=102&type=chunk) [03 Interest-earning Assets (IEA) and Funding](index=24&type=section&id=03%20Interest-earning%20Assets%20(IEA)%20and%20Funding) Credicorp's IEA increased **2.6%** QoQ and **5.2%** YoY, driven by cash and investments, while funding rose **0.7%** QoQ and **3.2%** YoY, mainly from low-cost deposits [3.1. IEA](index=24&type=section&id=3.1.%20IEA) Interest-Earning Assets (IEA) increased **2.6%** QoQ and **5.2%** YoY, driven by cash and due from banks and strategic investments, partially offset by loan declines - IEA rose **2.6%** QoQ, driven primarily by an increase in Cash and due from banks (**36.3%** QoQ), partially offset by a **3.0%** drop in total loans[104](index=104&type=chunk)[106](index=106&type=chunk) - YoY, IEA increased **5.2%**, spurred by growth in Cash and due from banks (**48.6%** YoY) and an uptick in investments (**4.3%** YoY) as part of a strategy to extend the portfolio's duration via larger holdings of sovereign bonds[105](index=105&type=chunk)[107](index=107&type=chunk) Interest Earning Assets (S/000) | Asset Type | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Cash and due from banks | 24,907,836 | 27,157,901 | 37,007,966 | 36.3% | 48.6% | | Total investments | 51,116,913 | 52,426,146 | 53,328,873 | 1.7% | 4.3% | | Total loans | 145,129,260 | 146,946,546 | 142,568,785 | -3.0% | -1.8% | | Total interest earning assets | 222,667,631 | 228,308,084 | 234,324,929 | 2.6% | 5.2% | [3.2. Funding](index=24&type=section&id=3.2.%20Funding) Total funding increased **0.7%** QoQ and **3.2%** YoY, driven by low-cost deposits from pension fund withdrawals and bond issuances - Funding rose **0.7%** QoQ, driven by growth in the deposit balance (**1.6%** QoQ), mainly from AFP withdrawals into low-cost deposits, partially offset by a **5.6%** drop in the Bond balance[104](index=104&type=chunk)[108](index=108&type=chunk) - YoY, funding increased **3.2%**, spurred mainly by deposit growth (**4.0%** YoY) and, to a lesser extent, by growth in 'Due to banks and correspondents' (**21.1%** YoY) and bond issuances (**13.7%** YoY) for long-term debt refinancing[105](index=105&type=chunk)[109](index=109&type=chunk) Funding Sources (S/000) | Funding Source | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Deposits and obligations | 148,471,535 | 151,971,984 | 154,435,451 | 1.6% | 4.0% | | Due to banks and correspondents | 10,493,411 | 12,620,346 | 12,704,234 | 0.7% | 21.1% | | BCRP instruments | 9,616,150 | 5,542,892 | 4,788,939 | -13.6% | -50.2% | | Bonds and notes issued | 14,914,632 | 17,953,508 | 16,952,011 | -5.6% | 13.7% | | Total funding | 185,617,598 | 190,235,527 | 191,474,800 | 0.7% | 3.2% | [04 Net Interest Income (NII)](index=25&type=section&id=04%20Net%20Interest%20Income%20(NII)) Credicorp's NII grew **3.5%** QoQ and **10.3%** YoY to **S/3,590.75 million**, driven by reduced interest expenses from low-cost deposits, improving NIM to **6.43%** [NII and NIM Overview](index=25&type=section&id=NII%20and%20NIM%20Overview) NII increased **3.5%** QoQ and **10.3%** YoY due to lower interest expenses from low-cost deposits, with NIM rising **10 bps** QoQ to **6.43%**, and risk-adjusted NIM improving **53 bps** - NII rose **3.5%** QoQ and **10.3%** YoY, driven primarily by a decrease in interest and similar expenses due to the growing share of low-cost deposits[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - NIM rose **10 bps** QoQ and **32 bps** YoY to **6.43%**, reflecting effective asset/liability management and a strategic funding advantage[112](index=112&type=chunk)[117](index=117&type=chunk) - Risk-adjusted NIM rose **53 bps** QoQ, supported by a reduction in provisions and improved client payment capacities[118](index=118&type=chunk) Net Interest Income and Margin (S/ 000) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Interest Income | 4,819,101 | 4,935,238 | 4,995,971 | 1.2% | 3.7% | | Interest Expense | (1,565,058) | (1,466,774) | (1,405,221) | -4.2% | -10.2% | | Net Interest Income | 3,254,043 | 3,468,464 | 3,590,750 | 3.5% | 10.3% | | Yield on IEAs | 8.73% | 8.69% | 8.64% | -5 bps | -9 bps | | Cost of Funds | 3.15% | 2.86% | 2.68% | -18 bps | -47 bps | | Net Interest Margin (NIM) | 6.11% | 6.33% | 6.43% | 10 bps | 32 bps | | Risk-Adjusted Net Interest Margin | 4.45% | 4.40% | 4.93% | 53 bps | 48 bps | [QoQ Analysis](index=26&type=section&id=QoQ%20Analysis) QoQ, NII increased **3.5%**, driven by LC NII growth from lower interest expenses due to low-cost deposits, and FC NII growth from increased interest income - QoQ, NII increased **3.5%**, with LC NII rising **3.4%** and FC NII rising **3.9%**[121](index=121&type=chunk)[122](index=122&type=chunk)[125](index=125&type=chunk) - LC NII growth was driven by a drop in interest expenses due to increased low-cost deposits from pension fund withdrawals, lower expenses in the BCRP and banks line (due to rate cuts and reduced repos), and a reduction in bond expenses[122](index=122&type=chunk) - FC NII growth was mainly driven by a **3.0%** increase in interest income from available funds, optimized via O/N deposits at BCRP, which offset a **2.1%** rise in interest expenses from a subordinated bond issuance[125](index=125&type=chunk) [YoY Analysis](index=27&type=section&id=YoY%20Analysis) YoY, NII increased **10.3%**, with LC NII rising from lower funding costs due to low-cost deposits, and FC NII growing from increased IEA and interest income - YoY, NII rose **10.3%**, with LC NII increasing **10.3%** and FC NII increasing **10.5%**[126](index=126&type=chunk)[128](index=128&type=chunk) - LC NII growth was fueled by a **27.1%** drop in interest expenses, as low-cost deposits increased and local interest rates declined, leading to a funding cost reduction from **4.0%** to **2.9%**[126](index=126&type=chunk) - FC NII growth was driven by a **9.7%** increase in average IEA and a **12.5%** rise in interest income, primarily from available funds and loans in Corporate Banking and BCP Bolivia, despite a **14.8%** increase in interest expenses due to debt issuances[128](index=128&type=chunk)[129](index=129&type=chunk) [YTD Analysis](index=27&type=section&id=YTD%20Analysis) YTD, NII grew **9.3%**, with LC NII rising from increased loan and investment income and lower expenses from low-cost deposits, while FC NII grew from loan and cash equivalent income - YTD, NII grew **9.3%**, with LC NII rising **9.6%** and FC NII increasing **8.1%**[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - LC NII growth was driven by a **3.8%** rise in interest income from loans (SME-Pyme and credit cards) and investments, and lower expenses due to a larger proportion of low-cost deposits[131](index=131&type=chunk) - FC NII growth was attributable to a **13.8%** rise in interest income from loans (Corporate Banking, BCP Bolivia) and cash equivalents, but interest expenses grew **21.0%** due to increased volumes of more expensive funding sources like 'Due to banks' and 'Bonds and notes'[132](index=132&type=chunk) [05 Portfolio Quality and Provisions](index=29&type=section&id=05%20Portfolio%20Quality%20and%20Provisions) Credicorp's NPL portfolio contracted, with the NPL ratio falling to **5.9%**, while provisions declined **20.6%** QoQ, leading to a **2.4%** CoR and **98.7%** NPL Coverage Ratio [5.1 Portfolio Quality](index=29&type=section&id=5.1%20Portfolio%20Quality) Credicorp's NPL portfolio decreased **4.8%** QoQ and **3.5%** YoY, with the NPL ratio falling to **5.9%**, driven by debt repayments, stricter origination, and improved collections - The NPL portfolio contracted, driven mainly by BCP Stand-alone and Mibanco, reaching a turning point in impacted segments like Individuals and structural SME-Pyme at BCP, and Mibanco's loan portfolio[133](index=133&type=chunk) - QoQ, the NPL balance dropped **4.8%**, led by BCP (debt repayments in Wholesale Banking and Individuals, lower overdue loans in SME-Pyme) and Mibanco (stricter origination, improved collections, debt facilities)[134](index=134&type=chunk)[137](index=137&type=chunk) - YoY, the NPL balance fell **3.5%**, driven by BCP (debt payment in Wholesale Banking, honoring of Reactiva guarantees in SME-Pyme), partially offset by Mibanco[138](index=138&type=chunk)[139](index=139&type=chunk) Loan Portfolio Quality and Delinquency Ratios (S/000) | Metric | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Total loans (Quarter-end balance) | 145,129,260 | 146,946,546 | 142,568,785 | -3.0% | -1.8% | | Write-offs | 1,018,084 | 994,556 | 923,946 | -7.1% | -9.2% | | Non-performing loans (NPLs) | 8,659,443 | 8,785,896 | 8,360,155 | -4.8% | -3.5% | | NPL ratio | 6.0% | 6.0% | 5.9% | -12 bps | -11 bps | [5.1 Provisions and Cost of Risk](index=30&type=section&id=5.1%20Provisions%20and%20Cost%20of%20Risk) Provisions declined **20.6%** QoQ and **5.4%** YoY, driven by improved payment performance at BCP and Mibanco, leading to a **2.4%** Cost of Risk - QoQ, provisions fell **20.6%**, driven primarily by BCP Stand-alone (improved payment performance in Retail Banking, particularly Consumer, Credit Cards, and SME-Pyme) and Mibanco (improvements in debt collection management)[149](index=149&type=chunk) - YoY, provisions fell **5.4%**, fueled by BCP Stand-alone (Consumer, SME-Pyme, Mortgage) and Mibanco, with the Cost of Risk (CoR) falling **15 bps** YoY to **2.4%**[150](index=150&type=chunk) - YTD, excluding the El Niño Phenomenon reversal in 1Q24, provisions rose **25.8%**, mainly due to weakening payment capacity and deteriorating performance in SME-Pyme and Credit Cards[151](index=151&type=chunk) Loan Portfolio Provisions and Cost of Risk (S/ 000) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Gross provision for credit losses on loan portfolio | (1,008,750) | (1,193,548) | (981,870) | -17.7% | -2.7% | | Recoveries of written-off loans | 91,108 | 100,177 | 113,789 | 13.6% | 24.9% | | Provision for credit losses on loan portfolio, net of recoveries | (917,642) | (1,093,371) | (868,081) | -20.6% | -5.4% | | Cost of risk | 2.5% | 3.0% | 2.4% | -64 bps | -15 bps | [Coverage Ratio of NPLs](index=31&type=section&id=Coverage%20Ratio%20of%20NPLs) The total NPL Coverage Ratio reached **98.7%** at 3Q24, increasing **364 bps** QoQ and **565 bps** YoY, driven by NPL reductions and increased allowance for loan losses - The total NPL Coverage Ratio reached **98.7%** at the end of 3Q24, and **101.9%** excluding Government Program portfolio NPLs[163](index=163&type=chunk) - QoQ, the total NPL Coverage Ratio at Credicorp rose **364 bps**, driven by BCP Stand-alone (**413 bps** increase to 100.7% excluding GP loans) and Mibanco (**386 bps** increase to 101.6% excluding GP loans)[164](index=164&type=chunk)[165](index=165&type=chunk) - YoY, the total NPL Coverage Ratio at Credicorp rose **565 bps**, mainly driven by BCP Stand-alone (**227 bps** increase excluding GP loans, due to higher allowance for loan losses in SME-Pyme and Credit Cards)[166](index=166&type=chunk) NPL Coverage Ratio (S/ 000) | Metric | Sep 23 | Jun 24 | Sep 24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Allowance for loan losses | 8,056,216 | 8,350,024 | 8,250,023 | -1.2% | 2.4% | | Non-performing loans (NPLs) | 8,659,443 | 8,785,896 | 8,360,155 | -4.8% | -3.5% | | Coverage ratio of NPLs | 93.0% | 95.0% | 98.7% | 364 bps | 565 bps | [06 Other Income](index=33&type=section&id=06%20Other%20Income) Credicorp's total Other Income contracted **2.4%** QoQ due to BCP Bolivia regulatory changes, but Other Core Income rose **3.8%** QoQ and **18.7%** YoY, driven by card usage, Yape, and Credicorp Capital fees [6.1. Other Core Income](index=33&type=section&id=6.1.%20Other%20Core%20Income) Other Core Income contracted **6.2%** QoQ due to BCP Bolivia regulatory changes, but excluding this, it rose **3.8%** QoQ, driven by BCP Stand-alone's fee income from card usage and Yape - Total Other Core Income contracted **6.2%** QoQ due to regulatory changes impacting BCP Bolivia's foreign transfers service business[171](index=171&type=chunk) - Excluding BCP Bolivia, Other Core Income rose **3.8%** QoQ, driven by a **4.4%** increase in Fee Income and **1.9%** growth in Gains on FX transactions, both mainly from BCP Stand-alone[172](index=172&type=chunk)[174](index=174&type=chunk) - YoY and YTD, Other Core Income grew **18.7%** and **14.6%** respectively, primarily due to increased Fee Income and Gains on FX Transactions at BCP Stand-alone (from retail/wholesale transactions and Yape)[174](index=174&type=chunk) Other Core Income (S/ 000) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Fee income | 975,955 | 1,148,830 | 1,108,314 | -3.5% | 13.6% | | Net gain on foreign exchange transactions | 208,620 | 217,896 | 172,998 | -20.6% | -17.1% | | Total other income Core | 1,184,575 | 1,366,726 | 1,281,312 | -6.2% | 8.2% | Fee Income at BCP Stand-alone (S/ 000,000) | Category | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Payments and transactionals | 335.6 | 333.3 | 376.5 | 13.0% | 12.2% | | Yape | 39.1 | 70.2 | 96.4 | 37.3% | 146.2% | | Liability accounts | 178.2 | 189.9 | 198.0 | 4.3% | 11.1% | | Loan Disbursement | 89.5 | 101.0 | 96.1 | -4.9% | 7.4% | | Total | 758.5 | 812.5 | 880.0 | 8.3% | 16.0% | [6.2 Other Non-Core Income](index=34&type=section&id=6.2%20Other%20Non-Core%20Income) Other Non-Core Income dropped **13.6%** QoQ (excluding BCP Bolivia) due to a base effect, but rose **13.4%** YoY, driven by successful trading strategies and revaluation of seed capital - QoQ, Other Non-Core Income dropped **13.6%** (excluding BCP Bolivia), primarily due to a base effect from a property sale and revaluation of the trading portfolio at Universal Banking[182](index=182&type=chunk) - YoY, Other Non-Core Income rose **13.4%**, attributable to growth in Net gain on Securities from successful trading strategies in Capital Markets and revaluation of seed capital in Asset Management[183](index=183&type=chunk) - YTD, Other Non-Operating Income rose **8.3%**, driven by Net Gain on Securities and an expansion in Net Gain on Derivatives Held for Trading in ASB and Credicorp Capital[184](index=184&type=chunk) Other Non-Core Income (S/ 000) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Net gain on securities | 53,591 | 92,711 | 120,033 | 29.5% | 124.0% | | Net gain from associates | 32,056 | 28,728 | 35,600 | 23.9% | 11.1% | | Net gain on derivatives held for trading | 38,545 | 41,748 | 93,801 | 124.7% | 143.4% | | Other non-financial income | 89,272 | 139,499 | 96,675 | -30.7% | 8.3% | | Total Other Non-Core Income | 218,028 | 294,753 | 339,970 | 15.3% | 55.9% | [07 Insurance Underwriting Result](index=36&type=section&id=07%20Insurance%20Underwriting%20Result) The Insurance Underwriting Result declined **7.5%** QoQ and **11.8%** YoY, primarily due to P&C reinsurance deterioration and increased Credit Life service expenses [Insurance Underwriting Result Overview](index=36&type=section&id=Insurance%20Underwriting%20Result%20Overview) The Insurance Underwriting Result dropped **7.5%** QoQ and **11.8%** YoY, mainly due to P&C reinsurance deterioration and increased Credit Life service expenses - QoQ, the Insurance Underwriting Result dropped **7.5%**, driven by deterioration in the Reinsurance Result (P&C) and growth in Insurance Service Expenses (Credit Life)[185](index=185&type=chunk) - YoY, the Insurance Underwriting Result declined **11.8%**, due to deterioration in the Reinsurance Result (P&C) and an increase in Insurance Service Expenses (P&C and AMED)[185](index=185&type=chunk) - YTD, the Insurance Underwriting Result dropped **4.1%**, mainly attributable to a deterioration in the Reinsurance Result (P&C) and a drop in Insurance Service Income, partially offset by a decrease in Insurance Service Expenses[185](index=185&type=chunk)[186](index=186&type=chunk) Insurance Underwriting Results (S/ 000) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Total Income from Insurance Services | 923.7 | 909.1 | 940.9 | 3.5% | 1.9% | | Total Expenses for Insurance Services | (505.4) | (496.1) | (514.7) | 3.8% | 1.8% | | Total Reinsurance Results | (87.4) | (97.5) | (134.4) | 37.8% | 53.9% | | Total Insurance Underwriting Result | 330.9 | 315.5 | 291.8 | -7.5% | -11.8% | [P & C](index=36&type=section&id=P%20%26%20C) The P&C Insurance Underwriting Result increased **10.4%** QoQ due to higher service income and lower expenses, but dropped **13.7%** YoY due to increased expenses and reinsurance issues - QoQ, the P&C Insurance Underwriting Result increased **10.4%**, driven by a **6.3%** rise in Insurance Service Income (Card Protection, Mortgage) and a **7.9%** drop in Insurance Service Expenses (base effect in Aviation)[189](index=189&type=chunk)[193](index=193&type=chunk) - The Reinsurance Result for P&C deteriorated QoQ due to a base effect from high claims recovered in 2Q24 in Aviation[193](index=193&type=chunk) - YoY, the P&C Insurance Underwriting Result dropped **13.7%**, despite a **16.4%** increase in Insurance Service Income[190](index=190&type=chunk)[193](index=193&type=chunk) - This was due to an **8.6%** rise in Insurance Service Expenses (Medical Assistance) and a deteriorated Reinsurance Result (growth in ceded premiums)[190](index=190&type=chunk)[193](index=193&type=chunk) [Life Insurance](index=37&type=section&id=Life%20Insurance) The Life Insurance Underwriting Result dropped **10.2%** QoQ and **7.7%** YoY, driven by decreased service income and increased service expenses - QoQ, the Life Insurance Underwriting Result dropped **10.2%**, driven by a **0.7%** drop in Insurance Service Income (Credit Life) and a **14.2%** increase in Insurance Service Expenses (Credit Life claims), partially offset by an improved Reinsurance Result[192](index=192&type=chunk)[194](index=194&type=chunk) - YoY, the Life Insurance Underwriting Result dropped **7.7%**, primarily due to a **7.0%** drop in Insurance Service Income (D&S), despite a **3.6%** decline in Insurance Service Expenses and an improved Reinsurance Result[192](index=192&type=chunk)[194](index=194&type=chunk) - YTD, the Life Insurance Underwriting Result dropped **5.3%**, driven by a decrease in Insurance Service Income, particularly in the D&S line[192](index=192&type=chunk) [08 Operating Expenses](index=38&type=section&id=08%20Operating%20Expenses) Credicorp's operating expenses increased **8.2%** YTD, driven by core businesses at BCP and **28.1%** growth in disruptive initiatives like Yape [Total Operating Expenses](index=38&type=section&id=Total%20Operating%20Expenses) Total operating expenses increased **8.2%** YTD, driven by higher Salaries and Employee Benefits from headcount and increased Administrative and General Expenses from digital transactions - Operating expenses rose **8.2%** YTD, driven by an increase in Salaries and Employee Benefits (**8.2%** YTD) and Administrative and General Expenses (**8.8%** YTD)[195](index=195&type=chunk)[198](index=198&type=chunk) - Growth in Salaries and Employee Benefits was due to increased headcount, hiring of specialized IT personnel, and higher provisions for variable compensation[198](index=198&type=chunk) - Administrative and General Expenses increased due to higher transactions through digital channels, leading to more cloud usage and other IT-related activities[198](index=198&type=chunk) Total Operating Expenses (S/ 000) | Expense Category | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | YTD Sep 23 | YTD Sep 24 | YTD Change (%) | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Salaries and employees benefits | 1,061,402 | 1,141,823 | 1,155,966 | 1.2% | 8.9% | 3,145,695 | 3,404,858 | 8.2% | | Administrative, general and tax expenses | 1,007,894 | 1,017,707 | 1,047,386 | 2.9% | 3.9% | 2,714,000 | 2,953,676 | 8.8% | | Depreciation and amortization | 159,761 | 172,204 | 179,495 | 4.2% | 12.4% | 481,389 | 526,845 | 9.4% | | Operating expenses (Total) | 2,243,691 | 2,340,934 | 2,389,261 | 2.1% | 6.5% | 6,385,072 | 6,909,840 | 8.2% | [Operating Expenses for Core Businesses and Disruption](index=39&type=section&id=Operating%20Expenses%20for%20Core%20Businesses%20and%20Disruption) The **8.2%** YTD increase in operating expenses was driven by BCP core businesses (**5.5%** YTD growth) and disruptive initiatives (**28.1%** YTD growth), accounting for **12.0%** of total expenses - The **8.2%** YTD increase in operating expenses was attributable to the Core business at BCP (**5.5%** YTD growth) and disruptive initiatives (**28.1%** YTD growth), accounting for **37.9%** and **34.6%** of YTD growth respectively[200](index=200&type=chunk) - BCP's core business expense uptick was driven by growth in salaries and employee benefits (headcount, variable compensation) and technology expenses (server use from digital transaction growth, specialized IT personnel hiring)[201](index=201&type=chunk)[202](index=202&type=chunk) - Disruptive expenses represented **12.0%** of total expenses and rose **28.1%** YTD, primarily for Yape, Culqui, and Tenpo, due to higher transactionality and new product development generating IT-related expenses[201](index=201&type=chunk) Operating Expenses for Core Businesses and Disruption (S/ 000) | Category | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | YTD Sep 23 | YTD Sep 24 | YTD Change (%) | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Core Business BCP | 1,232,663 | 1,302,494 | 1,316,399 | 1.1% | 6.8% | 3,622,682 | 3,821,327 | 5.5% | | Core Business Mibanco | 302,729 | 295,728 | 315,089 | 6.5% | 4.1% | 901,634 | 915,206 | 1.5% | | Disruption | 235,311 | 283,966 | 295,848 | 4.2% | 25.7% | 644,925 | 826,431 | 28.1% | | Total | 2,243,691 | 2,340,934 | 2,389,261 | 2.1% | 6.5% | 6,385,072 | 6,909,840 | 8.2% | [09 Operating Efficiency](index=40&type=section&id=09%20Operating%20Efficiency) Credicorp's efficiency ratio improved **50 bps** YTD to **44.6%**, as operating income growth outpaced expense expansion, driven by higher NII and increased fee income - The efficiency ratio improved **50 bps** YTD to **44.6%**, as income growth outpaced expense expansion[203](index=203&type=chunk)[205](index=205&type=chunk) - This improvement was driven by growth in core income, specifically higher net interest income and an uptick in fee income from increased use of digital channels and Yape[203](index=203&type=chunk)[205](index=205&type=chunk) Efficiency Ratio by Subsidiary | Subsidiary | 3Q23 | 2Q24 | 3Q24 | QoQ Change | YoY Change | YTD Sep 23 | YTD Sep 24 | YTD Change | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | BCP | 39.2% | 38.2% | 37.6% | -60 bps | -160 bps | 37.8% | 37.4% | -40 bps | | BCP Bolivia | 65.3% | 58.2% | 80.3% | 2210 bps | 1500 bps | 62.1% | 64.3% | 220 bps | | Mibanco Perú | 51.4% | 51.0% | 54.2% | 320 bps | 280 bps | 52.6% | 52.8% | 20 bps | | Credicorp (Consolidated) | 46.3% | 44.9% | 45.2% | 29 bps | -112 bps | 45.1% | 44.6% | -50 bps | [10 Regulatory Capital](index=41&type=section&id=10%20Regulatory%20Capital) Credicorp's Regulatory Capital Ratio stood **1.43 times** above minimum, with BCP Stand-alone's IFRS CET1 ratio at **13.42%** and Mibanco's at **17.94%**, both driven by retained earnings and RWA reduction [10.1 Regulatory Capital at Credicorp](index=41&type=section&id=10.1%20Regulatory%20Capital%20at%20Credicorp) Credicorp's Regulatory Capital Ratio stood **1.43 times** above minimum, increasing **10 bps** QoQ due to higher Subordinated Debt and Retained Earnings, reflecting strong financial stability - Credicorp's Regulatory Capital Ratio stood **1.43 times** above the minimum required at the end of 3Q24, increasing **10 bps** QoQ[206](index=206&type=chunk)[210](index=210&type=chunk) - This growth was driven by an increase in Subordinated Debt (related to a BCP issuance) and an increase in Retained Earnings, particularly at BCP[210](index=210&type=chunk) - Regulatory Tier 1 rose to **1.79 times** (+9 bps) and Common Equity Tier 1 stood at **2.20** (+11 bps), both above minimum requirements[211](index=211&type=chunk) - The SBS modified the structure and composition of Total Regulatory Capital for financial conglomerates in 2024 to align with Basel III, incorporating Retained Earnings and Unrealized Gains/Losses, and including minimum CET1 and Tier 1 requirements[208](index=208&type=chunk)[209](index=209&type=chunk) [10.2 Analysis of Capital at BCP Stand-alone](index=42&type=section&id=10.2%20Analysis%20of%20Capital%20at%20BCP%20Stand-alone) BCP Stand-alone's IFRS CET1 Ratio increased **137 bps** QoQ to **13.42%**, driven by retained earnings and RWA reduction from loan contraction, with Global Capital Ratio at **18.96%** - The IFRS CET1 Ratio at BCP Stand-alone rose **137 bps** QoQ to **13.42%** in 3Q24, above the internal appetite of 11%[206](index=206&type=chunk)[218](index=218&type=chunk) - This increase was attributable to an uptick in Retained Earnings and a drop in the RWA level (fueled by loan contraction)[218](index=218&type=chunk) - The Global Capital Ratio stood at **18.96%** (+272 bps QoQ), well above the regulatory minimum of 13.12%, driven by an increase in Subordinated Debt and Retained Earnings[219](index=219&type=chunk) - YoY, the IFRS CET1 ratio increased **38 bps**, driven by growth in Retained Earnings, offset by an uptick in operational RWAs[206](index=206&type=chunk)[218](index=218&type=chunk) [10.3 Analysis of Capital at Mibanco](index=42&type=section&id=10.3%20Analysis%20of%20Capital%20at%20Mibanco) Mibanco's IFRS CET1 Ratio stood at **17.94%** (up **122 bps** QoQ), driven by RWA reduction from loan contraction and increased retained earnings, with Global Capital Ratio at **20.22%** - The IFRS CET1 Ratio at Mibanco stood at **17.94%** (+122 bps QoQ) at the end of 3Q24, above the internal appetite of 15%[206](index=206&type=chunk)[223](index=223&type=chunk) - This increase was attributable to a reduction in the RWA level (driven by loan contraction due to stricter lending guidelines) and an increase in Retained Earnings[223](index=223&type=chunk) - The Global Capital Ratio at Mibanco stood at **20.22%** (+127 bps QoQ), significantly above the regulatory minimum of 13.85%[224](index=224&type=chunk) - YoY, this ratio increased **38 bps** due to a drop in the RWA level, offset by a decrease in the Retained Earnings balance[206](index=206&type=chunk)[223](index=223&type=chunk) [11 Economic Outlook](index=43&type=section&id=11%20Economic%20Outlook) The Peruvian economy grew around **3.5%** YoY in 3Q24, with inflation at **1.8%**, BCRP reference rate at **5.25%**, a **4.0%** fiscal deficit, and a historical trade surplus [Peru: Economic Forecast](index=43&type=section&id=Peru%3A%20Economic%20Forecast) Peru's GDP is estimated to grow **3.0%** in 2024, with inflation at **2.4%**, BCRP reference rate at **5.00%** by year-end, and a **US$21,000 million** trade surplus Peru: Economic Forecast (2019-2025) | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (4) | 2025 (4) | |:---|:---|:---|:---|:---|:---|:---|:---| | Real GDP (% change) | 2.2 | (10.9) | 13.4 | 2.7 | (0.6) | 3.0 | 2.8 | | Inflation, end of period (%) | 1.9 | 2.0 | 6.4 | 8.5 | 3.2 | 2.4 | 2.5 | | Reference Rate, end of period | 2.25 | 0.25 | 2.50 | 7.50 | 6.75 | 5.00 | 4.25 | | Exchange rate, end of period (USDPEN) | 3.31 | 3.62 | 3.99 | 3.81 | 3.71 | 3.75 | 3.75 | | Fiscal balance (% GDP) | -1.6 | -8.9 | -2.5 | -1.7 | -2.8 | -3.5 | -2.4 | | Trade balance (US$ Millions) | 6,879 | 8,102 | 15,115 | 10,166 | 17,678 | 21,000 | 22,000 | - In 3Q24, the Peruvian economy is estimated to have grown around **3.5%** YoY, with non-primary sectors expanding approximately **4.1%** YoY, driven by services and non-primary manufacturing[225](index=225&type=chunk)[231](index=231&type=chunk) - Annual inflation slowed to **1.8%** YoY in 3Q24, remaining within the BCRP's target range of **1%** to **3%**[226](index=226&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - The BCRP held its reference rate at **5.25%** in October after cuts in August and September[233](index=233&type=chunk)[234](index=234&type=chunk) [Fiscal Balance and Current Account Balance](index=45&type=section&id=Fiscal%20Balance%20and%20Current%20Account%20Balance) The annualized fiscal deficit stood at **4.0%** of GDP in September 2024, with a historical **US$20.7 billion** trade surplus driven by **8.4%** YoY export growth - The annualized fiscal deficit as of September 2024 stood at **4.0%** of GDP, marking the fifth consecutive month at this level[237](index=237&type=chunk) - The 12-month cumulative trade surplus as of August 2024 reached a new historical high of **US$20.7 billion**, with exports growing **8.4%** YoY and imports remaining stable[240](index=240&type=chunk) - Terms of trade grew **11.8%** YoY in August 2024, driven by higher prices for copper, gold, and silver, and lower import prices for industrial inputs and food items[241](index=241&type=chunk) - Moody's and Fitch affirmed Peru's foreign currency sovereign credit rating at Baa1 and BBB respectively, both upgrading the outlook to stable, citing sound policymaking and economic recovery[238](index=238&type=chunk)[239](index=239&type=chunk) [Exchange Rate](index=45&type=section&id=Exchange%20Rate) The exchange rate closed 3Q24 at **USDPEN 3.71**, appreciating **3.3%** QoQ due to global dollar weakening, with Net International Reserves reaching a historical high of **US$83.8 billion** - The exchange rate closed 3Q24 at **USDPEN 3.71**, appreciating **3.3%** compared to 2Q24 and remaining stable compared to the end of 2023[226](index=226&type=chunk)[243](index=243&type=chunk) - This appreciation was driven by the weakening of the global dollar, influenced by expectations surrounding the start of the Fed's rate-cutting cycle, which led to appreciation in most Latin American currencies[244](index=244&type=chunk) - Net International Reserves (NIR) closed 3Q24 at **US$80.4 billion**, reaching a historical high of **US$83.8 billion** in mid-September 2024[245](index=245&type=chunk) [Safe Harbor for Forward-Looking Statements](index=46&type=section&id=Safe%20Harbor%20for%20Forward-Looking%20Statements) This section provides a safe harbor statement for forward-looking statements, cautioning readers about inherent risks and uncertainties, with no obligation to update - The material includes forward-looking statements based on management's current views, beliefs, expectations, and assumptions, which are not assurances of future performance[246](index=246&type=chunk) - Readers are cautioned that forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially[248](index=248&type=chunk) - The company undertakes no obligation to publicly update or revise these statements to reflect events or circumstances after the date of the report[249](index=249&type=chunk) [12 Appendix](index=47&type=section&id=12%20Appendix) The Appendix provides detailed supplementary information, including physical points of contact, loan portfolio quality, NII/NIM, regulatory capital, financial statements, and a glossary [12.1. Physical Point of Contact](index=48&type=section&id=12.1.%20Physical%20Point%20of%20Contact) Credicorp's physical point of contact network saw minor changes in 3Q24, with a slight decrease in branches but an increase in ATMs and agents, totaling **41** QoQ and **103** YoY Physical Point of Contact (Units) | Category | Sep 23 | Jun 24 | Sep 24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Branches | 661 | 650 | 648 | -2 | -13 | | ATMs | 2,677 | 2,745 | 2,766 | 21 | 89 | | Agents | 11,830 | 11,835 | 11,857 | 22 | 27 | | Total | 15,168 | 15,230 | 15,271 | 41 | 103 | [12.2. Loan Portfolio Quality](index=48&type=section&id=12.2.%20Loan%20Portfolio%20Quality) This section provides detailed portfolio quality ratios by segment, including NPL and coverage ratios, illustrating granular loan book performance [12.3. Net Interest Income (NII)](index=52&type=section&id=12.3.%20Net%20Interest%20Income%20(NII)) Net Interest Income increased **3.5%** QoQ and **10.3%** YoY to **S/3,590,750 thousand**, driven by increased interest income and decreased interest expense Net Interest Income (S/ 000) | Metric | 3Q23 | 2Q24 | 3Q24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Interest income | 4,819,101 | 4,935,238 | 4,995,971 | 1.2% | 3.7% | | Interest on loans | 3,853,361 | 3,921,374 | 3,924,222 | 0.1% | 1.8% | | Interest on deposits with banks | 289,934 | 319,829 | 365,361 | 14.2% | 26.0% | | Interest on securities | 641,370 | 657,897 | 667,195 | 1.4% | 4.0% | | Interest expense | 1,565,058 | 1,466,774 | 1,405,221 | -4.2% | -10.2% | | Interest on deposits | 859,659 | 738,010 | 677,509 | -8.2% | -21.2% | | Interest on bonds and subordinated notes | 149,449 | 200,739 | 200,801 | 0.0% | 34.4% | | Net interest income | 3,254,043 | 3,468,464 | 3,590,750 | 3.5% | 10.3% | | Risk-adjusted Net interest income | 2,336,401 | 2,375,093 | 2,722,669 | 14.6% | 16.5% | [12.4. Net Interest Margin (NIM) and Risk Adjusted NIM](index=52&type=section&id=12.4.%20Net%20Interest%20Margin%20(NIM)%20and%20Risk%20Adjusted%20NIM) Credicorp's consolidated NIM improved to **6.43%** in 3Q24, with Risk-Adjusted NIM reaching **4.93%**, and subsidiaries also showing improvements NIM Breakdown by Subsidiary | Subsidiary | 3Q23 | 2Q24 | 3Q24 | |:---|:---|:---|:---| | BCP Stand-alone | 5.77% | 6.08% | 6.17% | | Mibanco | 13.64% | 13.61% | 13.86% | | BCP Bolivia | 2.87% | 3.03% | 2.95% | | Credicorp (Consolidated) | 6.11% | 6.33% | 6.43% | Risk Adjusted NIM Breakdown by Subsidiary | Subsidiary | 3Q23 | 2Q24 | 3Q24 | |:---|:---|:---|:---| | BCP Stand-alone | 4.18% | 4.30% | 4.75% | | Mibanco | 8.73% | 7.67% | 9.12% | | BCP Bolivia | 2.47% | 2.25% | 2.59% | | Credicorp (Consolidated) | 4.45% | 4.40% | 4.93% | [12.5. Regulatory Capital](index=53&type=section&id=12.5.%20Regulatory%20Capital) This section details regulatory capital for Credicorp, BCP Stand-alone, and Mibanco, showing Credicorp's Total Regulatory Capital increased **8.1%** QoQ to a **1.43** ratio, with strong CET1 ratios for subsidiaries [Regulatory Capital at Credicorp](index=53&type=section&id=Regulatory%20Capital%20at%20Credicorp) Credicorp's Total Regulatory Capital increased **8.1%** QoQ to **S/39,078,056 thousand**, with a Regulatory Capital Ratio of **1.43**, and CET1 and Tier 1 ratios well above minimums Credicorp Regulatory Capital and Capital Adequacy Ratios (S/000) | Metric | Jun 24 | Sep 24 | QoQ Change (%) | |:---|:---|:---|:---| | Capital Stock | 1,318,993 | 1,318,993 | - | | Legal and Other Capital reserves | 28,008,038 | 27,187,346 | -2.9% | | Current and Accumulated Earnings | 3,914,339 | 5,432,237 | 38.8% | | Subordinated Debt | 5,896,957 | 7,939,610 | 34.6% | | Total Regulatory Capital (A) | 36,151,641 | 39,078,056 | 8.1% | | Total Regulatory Common Equity Tier 1 Capital (B) | 29,186,401 | 30,696,480 | 5.2% | | Total Regulatory Tier 1 Capital (C) | 29,186,145 | 30,696,480 | 5.2% | | Regulatory Capital Ratio (A) / (D) | 1.33 | 1.43 | 10 bps | | Regulatory Common Equity Tier 1 Capital Ratio (B) / (E) | 2.09 | 2.20 | 11 bps | | Regulatory Tier 1 Capital Ratio (C) / (F) | 1.71 | 1.79 | 9 bps | [Regulatory and Capital Adequacy Ratios at BCP Stand-alone](index=54&type=section&id=Regulatory%20and%20Capital%20Adequacy%20Ratios%20at%20BCP%20Stand-alone) BCP Stand-alone's Total Regulatory Capital increased **14.3%** QoQ to **S/29,601,060 thousand**, with CET1 ratio rising **135 bps** QoQ to **13.25%**, and Global Capital ratio to **18.96%** BCP Stand-alone Regulatory Capital (S/ thousand) | Metric | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Capital Stock | 12,973,175 | 12,973,175 | 12,973,175 | 0.0% | 0.0% | | Accumulated earnings | 4,474,351 | 3,920,795 | 5,426,132 | 38.4% | 21.3% | | Subordinated Debt | 5,120,550 | 5,171,850 | 7,232,550 | 39.8% | 41.2% | | Total Regulatory Capital | 26,397,466 | 25,893,766 | 29,601,060 | 14.3% | 12.1% | | Tier 1 Common Equity | 19,609,166 | 18,972,038 | 20,679,203 | 9.0% | 5.5% | BCP Stand-alone Capital Ratios under Local Regulation | Ratio | Sep 23 | Jun 24 | Sep 24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Common Equity Tier 1 ratio | 13.01% | 11.90% | 13.25% | 135 bps | 24 bps | | Regulatory Global Capital ratio | 17.51% | 16.24% | 18.96% | 272 bps | 145 bps | [Regulatory Capital and Capital Adequacy Ratios at Mibanco](index=55&type=section&id=Regulatory%20Capital%20and%20Capital%20Adequacy%20Ratios%20at%20Mibanco) Mibanco's Total Regulatory Capital increased **2.4%** QoQ to **S/2,648,281 thousand**, with CET1 ratio rising **123 bps** QoQ to **17.85%**, and Global Capital Ratio to **20.22%** Mibanco Regulatory Capital (S/ thousand) | Metric | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Capital Stock | 1,840,606 | 1,840,606 | 1,840,606 | 0.0% | 0.0% | | Accumulated earnings | 669,894 | 356,449 | 424,627 | 19.1% | -36.6% | | Total Regulatory Capital | 2,861,101 | 2,585,586 | 2,648,281 | 2.4% | -7.4% | | Tier Common Equity | 2,524,943 | 2,268,460 | 2,338,088 | 3.1% | -7.4% | Mibanco Capital Ratios under Local Regulation | Ratio | Sep 23 | Jun 24 | Sep 24 | QoQ Change | YoY Change | |:---|:---|:---|:---|:---|:---| | Common Equity Tier 1 Ratio | 17.43% | 16.62% | 17.85% | 123 bps | 42 bps | | Regulatory Global Capital Ratio | 19.75% | 18.95% | 20.22% | 127 bps | 47 bps | [Common Equity Tier 1 IFRS](index=56&type=section&id=Common%20Equity%20Tier%201%20IFRS) BCP Stand-alone's IFRS CET1 ratio increased **137 bps** QoQ to **13.42%**, driven by retained earnings and reduced RWAs, while Mibanco's rose **122 bps** QoQ to **17.94%** due to RWA reduction BCP Stand-alone Common Equity Tier 1 IFRS (S/ thousand) | Metric | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Retained earnings | 5,104,881 | 4,674,213 | 6,076,551 | 30.0% | 19.0% | | Total CET1 IFRS | 19,806,164 | 19,332,463 | 21,082,641 | 9.1% | 6.4% | | Adjusted RWAs IFRS | 151,843,249 | 160,418,064 | 157,046,547 | -2.1% | 3.4% | | CET1 ratio IFRS | 13.04% | 12.05% | 13.42% | 137 bps | 38 bps | Mibanco Common Equity Tier 1 IFRS (S/ thousand) | Metric | Sep 23 | Jun 24 | Sep 24 | QoQ Change (%) | YoY Change (%) | |:---|:---|:---|:---|:---|:---| | Retained earnings | 267,299 | (26,918) | 36,907 | -237.1% | -86.2% | | Total CET1 IFRS | 2,585,288 | 2,315,848 | 2,384,488 | 3.0% | -7.8% | | Adjusted RWAs IFRS | 14,719,637 | 13,852,449 | 13,291,063 | -4.1% | -9.7% | | CET1 ratio IFRS | 17.56% | 16.72% | 17.94% | 122 bps | 38 bps | [12.6. Financial Statements and Ratios by Business](index=57&type=section&id=12.6.%20Financial%20Statements%20and%20Ratios%20by%20Business) This section provides detailed financial statements and indicators for Credicorp Consolidated, Stand-alone, BCP, Mibanco, Prima AFP, Grupo Pacifico, and Investment Management & Advisory [12.6.1. Credico

Credicorp Ltd. (NYSE:BAP) Q3 2024 Results Conference Call November 8, 2024 9:30 AM ET Company Participants Milagros Cigüeñas - Investor Relations Gianfranco Ferrari - Chief Executive Officer Alejandro Perez-Reyes - Chief Financial Officer Francesca Raffo - Chief Innovation Officer Cesar Rios - Chief Risk Officer Carlos Sotelo - Mibanco's Chief Financial Officer Conference Call Participants Ernesto Gabilondo - Bank of America Renato Meloni - Autonomous Research Tito Labarta - Goldman Sachs Thiago Batista - U ...

Lima, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Lima, PERU, November 1st, 2024 – Credicorp Ltd. (“Credicorp”) (NYSE: BAP | BVL: BAP), the leading financial services holding company in Peru with a presence in Chile, Colombia, Bolivia, and Panama, announced today that it has reached an agreement to acquire Empresas Banmédica (“Banmedica”)'s 50% interest in the joint venture executed in December 2014 between Pacífico Compañía de Seguros y Reaseguros S.A. (“Pacifico Seguros”) and Banmedica. Closing is subject to regula ...