Group 1 - Credicorp Ltd. will enter a quiet period for its 1Q25 earnings release starting May 1, 2025, which will last until May 15, 2025 [1] - During the quiet period, the company will refrain from disclosing financial information, commenting on financial results, or responding to related inquiries [1] Group 2 - Credicorp is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama [2] - The company has a diversified business portfolio organized into four main lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [2]

Company Overview - Credicorp (BAP) shares increased by 4.8% to $178.02 in the last trading session, following a broader market rally influenced by President Trump's announcement of a 90-day tariff pause for non-retaliating nations [1] - The stock had previously experienced a 6.1% decline over the past four weeks, indicating a significant turnaround in investor sentiment [1] Earnings Expectations - Credicorp is projected to report quarterly earnings of $5.31 per share, reflecting a year-over-year increase of 4.9% [2] - Expected revenues for the upcoming report are $1.42 billion, which represents a 9.2% increase compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for Credicorp has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [3] - Credicorp currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] - In comparison, Bancolombia (CIB), another stock in the same industry, closed 8% higher at $38.98, although it has returned -12.7% over the past month [3] Industry Context - Credicorp operates within the Zacks Banks - Foreign industry, which is currently experiencing varied performance among its constituents [3] - Bancolombia's consensus EPS estimate has decreased by 1% over the past month to $1.62, representing a 10% decline compared to the previous year [4]

Group 1: Acquisition Details - Credicorp has completed the acquisition of the remaining 50% interest in the joint venture with Banmedica, which was initially established in December 2014 [1][2] - Following the acquisition, Banmedica's 50% interest in the private medical insurance business has been transferred to Pacifico Seguros, while its interest in Pacifico EPS has been transferred to Credicorp's subsidiary Grupo Crédito S.A. [3] Group 2: Strategic Implications - This acquisition enhances Credicorp's ability to create a more sustainable and inclusive economy by improving access to insurance and healthcare, while also advancing financial inclusion in Peru [4] - The company remains committed to investing in the country and the sector, ensuring that Pacifico Seguros and Pacifico EPS continue to be trusted partners for Peruvian families [4] Group 3: Operational Continuity - Customers, policyholders, agents, and other stakeholders can expect a seamless transition with no disruptions to services, product terms, or policy administration following the transaction [5] Group 4: Company Overview - Credicorp is the leading financial services holding company in Peru, with a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [6] - Pacifico EPS is one of the largest corporate health insurance providers in Peru, with over one million clients and a reported net income of S/ 207 million for 2024 [7] - Pacifico Seguros, part of Credicorp, reported a net income of S/ 770 million in 2024 and offers a wide range of insurance products [8]

Group 1 - Credicorp is recognized as one of the better-run banks in Latin America, particularly noted for its effective risk management practices [1] - The company has garnered a positive reputation among investors, indicating strong operational performance [1]

Financial Performance - Net income attributed to Credicorp in 4Q24 was S/1,126.7 million, a decline of 26.1% QoQ but an increase of 33.8% YoY, with ROE at 13.3% impacted by one-off charges related to the Sartor case[6] - Core income expanded by 1.7% QoQ and 8.9% YoY, supported by strong net interest income and record-high transactional volumes[6] - Net profit attributable to Credicorp for 4Q24 was S/1,126,713, a 33.8% increase year-over-year[42] - Credicorp expects a ROE of approximately 17.5% for 2025, driven by loan portfolio growth, resilient NIM, and reduced cost of risk[41] - Total other income increased by 11.8% year-over-year, reaching S/6,404,119[42] Loan and Deposit Growth - Total loans measured in average daily balances (ADB) rose 0.7% QoQ to S/141,838 million, driven by short-term corporate loans and government program loans[13] - Total deposits increased by 4.8% QoQ and 9.6% YoY, with low-cost deposits accounting for 69.4% of total deposits[15] - Total loans in average daily balances reached S/ 142.57 billion, reflecting a QoQ increase of 0.7% and a YoY decrease of 0.5%[69] - Total loans increased to S/ 91,779 million, reflecting a 1.1% QoQ growth and a 0.9% decline YoY[75] - Total loans in average daily balances for Mibanco fell by 11.8% YoY, indicating challenges in the small-ticket loan segment[69][73] Risk Management and Provisions - The NPL ratio improved by 60 bps QoQ and 63 bps YoY to 5.3%, reflecting better risk management and repayments[6] - Provisions fell by 14.4% QoQ, driven by improved payment performance in SMEs and individuals, with a cost of risk of 2.4% for the full year[23] - The gross provision for credit losses on the loan portfolio fell by 12.6% QoQ and 31.9% YoY, indicating improved payment performance in SME-Pyme and Mortgage segments[144] - The total NPL Coverage Ratio at Credicorp reached 104.3% at the end of 4Q24, up 566 bps QoQ, reflecting a decrease in NPL volumes[163][164] - Credicorp's NPL Ratio decreased by 60 bps QoQ to 5.3%, primarily due to improved portfolio quality metrics and loan growth[137] Digital Transformation and Client Engagement - Yape reached 13.7 million monthly active users, with monthly revenues per active user increasing to S/6.5[4] - Credicorp's digital clients increased from 68% in 4Q23 to 76% in 4Q24, with digital monetary transactions rising from 80% to 86% in the same period[50] - Yape generated total income of S/233.2 million in 4Q24, up 22.9% quarter-over-quarter and 117.3% year-over-year, with the Payments business contributing 55% of total income[60] - Monthly transactions per MAU for Yape increased from 35.3 in 4Q23 to 51.1 in 4Q24, reflecting a 44.6% year-over-year growth[55] - Credicorp's financial inclusion efforts resulted in 5.7 million people being financially included, an increase of 1.8 million compared to 2023[62] Insurance Performance - Insurance underwriting results rose by 7.2% QoQ and 8.8% YoY, driven by stronger reinsurance results in the P&C business[28] - Year-over-Year, the Insurance Underwriting Result rose by 8.8%, attributed to lower Insurance Service Expenses in Life and higher income in P&C[190] - P&C Insurance segment's Insurance Underwriting Result rose by 56.4% YoY, driven by increased claims recovered from reinsurers[196] - Overall, the company reported a decrease in Insurance Service Expenses by 10.1% YoY, which contributed to the increase in Insurance Underwriting Results[191] - The company experienced a 10.7% increase in Insurance Service Expenses QoQ, impacting overall profitability despite the growth in income[191] Fee Income and Other Income - Fee income for 4Q24 was S/1.10 billion, showing a 11.9% increase YoY, despite a slight QoQ decline[171] - Total Net Fee Income for Q4 2024 reached S/1,103,548, reflecting a 0.4% decrease QoQ but an 11.9% increase YoY[172] - The growth in Fee Income at BCP Stand-Alone was primarily driven by Payments and Transactional services, which accounted for 11.1% growth YoY[181] - Yape contributed significantly to the growth in Fee Income, accounting for 54% of the total increase, with a YoY growth of 278.9%[181] - Other Non-Core Income totaled S/334,503 in Q4 2024, showing a 1.6% decrease QoQ but an 18.4% increase YoY[182]

Financial Data and Key Metrics Changes - The company reported record profitability of $5.5 billion and an ROE of 16.5%, which adjusted to 17.2% when excluding one-off charges related to the Sartorius case [7][11] - The cost of risk fell to 2.1%, with provisions decreasing by 14.4% due to improved payment performance [33][76] - The net interest margin (NIM) decreased by nine basis points to 6.3% [34][78] Business Line Data and Key Metrics Changes - Universal banking and insurance business lines drove strong results, with significant growth in transactional volumes, particularly in FX and diesel transactions [12][26] - BCP's ROE reached 20.1%, supported by resilient margins and a shift towards retail loans [44][51] - MiBanco's NPL ratio improved, falling for three consecutive quarters, while NIM rose to 14.2% [61][62] Market Data and Key Metrics Changes - The Peruvian economy grew around 4% year-over-year in Q4 2024, recovering from a contraction in 2023 [36][39] - Inflation in Peru was controlled at 2%, one of the lowest figures among both advanced and developing economies [37][42] - The banking industry is expected to grow around 5.5%, with the company anticipating growth above this market rate [95][150] Company Strategy and Development Direction - The company aims to achieve 10% of risk-adjusted revenues from new businesses by 2026, focusing on digital transformation and sustainability [20][176] - Strategic priorities include attracting top talent, enhancing digital capabilities, and integrating sustainability into the core business strategy [15][176] - The company is committed to a robust risk management framework to support growth across all subsidiaries [178] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the macroeconomic recovery and its positive impact on loan growth, expecting the Peruvian economy to grow around 3% in 2025 [10][39] - The company anticipates a resilient NIM despite potential policy rate reductions, supported by a shift towards higher-yielding loans [83][84] - Management highlighted the importance of political stability and responsible fiscal policies for long-term sustainable growth [10][11] Other Important Information - The company has allocated over $1.5 billion in sustainable financing across various sectors, emphasizing its commitment to financial inclusion and education [19][20] - Yape, the company's payments platform, reached profitability in 2024 with nearly 14 million active users, becoming Peru's fifth-largest e-commerce player [27][54] Q&A Session Summary Question: Political landscape and its impact on the industry - Management noted the uncertainty with many candidates for the upcoming elections but expects minimal impact on the industry until late in the year [92][94] Question: Sustainable ROE and operational expenses - Management expects to achieve an ROE of around 18% by 2026, with disruptive initiatives contributing positively to ROE [97][98] Question: Asset quality and loan origination - Management expressed confidence in restarting loan origination due to improved macro conditions and better performance of new vintages [104][106] Question: Provisioning related to Sartorius - A provision of 259 million soles was made, and management believes this should cover potential losses without needing additional provisions [111][155] Question: Efficiency ratio guidance - Management indicated that while Yape is profitable, its higher cost-to-income ratio may lead to a stable or slightly weaker efficiency ratio in the near term [120][125] Question: Capital distribution and dividends - The company aims to pay out excess capital as dividends, with a goal of growing dividends in March [136][137] Question: Loan growth expectations - The company expects to grow above the market rate, with average daily balances projected to increase by 3.5% [150][151]

4Q24 Earnings Conference Call February 2025 Safe Harbor This material includes "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical fact are forward-looking and may contain information about financial results, economic conditions, trends and known uncertainties. Forward-looking statements are not assurances of future performance. Instead, they are based ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Credicorp, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Credicorp is expected to report quarterly earnings of $4.37 per share, reflecting a year-over-year increase of +56.1% [3] - Revenues are projected to be $1.38 billion, an increase of 8.2% from the previous year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - A negative Earnings ESP of -1.33% suggests recent bearish sentiment among analysts regarding the company's earnings prospects [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict earnings deviation from consensus estimates, with positive readings being more reliable [7][8] - Credicorp's current Zacks Rank is 2, which complicates the prediction of an earnings beat despite the negative Earnings ESP [11] Historical Performance - In the last reported quarter, Credicorp exceeded expectations by delivering earnings of $5.08 per share against an expected $4.67, resulting in a surprise of +8.78% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Conclusion - While Credicorp does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions [16]

Group 1 - Credicorp Ltd. will release its 4Q24 Earnings Report on February 10, 2025, after market close [1] - A conference call to discuss the earnings results will take place on February 11, 2025, at 9:30 a.m. ET [1] - The call will be hosted by key executives including the CEO, CFO, and heads of various divisions [1] Group 2 - Participants are encouraged to pre-register for the webcast presentation to gain immediate access [2] - Those unable to pre-register can dial in using provided toll-free and international numbers [3] - The webcast will be archived for one year on the investor relations website [3] Group 3 - Credicorp Ltd. is the leading financial services holding company in Peru, with a diversified portfolio across four primary business lines [4] - The company operates in multiple countries including Peru, Chile, Colombia, Bolivia, and Panama [4] - Its business lines include Universal Banking, Microfinance, Insurance and Pension Funds, and Investment Management and Advisory [4]

Group 1 - Credicorp Ltd. will release its 4Q24 Earnings Report on February 10, 2025, after market close [1] - A conference call to discuss the earnings results will take place on February 11, 2025, at 9:30 a.m. ET [1] - The call will be hosted by key executives including the CEO, CFO, and heads of various divisions [1] Group 2 - Participants are encouraged to pre-register for the webcast presentation to gain immediate access [2] - Those unable to pre-register can dial in using provided toll-free and international numbers [3] - The webcast will be archived for one year on the investor relations website [3] Group 3 - Credicorp Ltd. is the leading financial services holding company in Peru, with a diversified portfolio across four primary business lines [4] - The company operates in multiple countries including Peru, Chile, Colombia, Bolivia, and Panama [4]