Fixed Income Presentation. Third Quarter 2017

Transcription

1 Fixed Income Presentation Third Quarter 2017

2 Disclaimer The information contained herein has been prepared by Banco de Crédito del Perú ( BCP ) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment or other advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed in this presentation are subject to change without notice and BCP is under no obligation to update or keep current the information contained herein. The information contained herein does not purport to be complete and is qualified in its entirety by reference to more detailed information appearing elsewhere, if any. BCP and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This presentation may contain statements that are forward-looking subject to risks and uncertainties and factors, which are based on current expectations and projections about future events and trends that may affect BCP s business. You are cautioned that any such forward-looking statements are not guarantees of future performance. Several factors may adversely affect the estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control. 2

3 Investment Highlights 1 Peru: Strong Macroeconomic Fundamentals and Underpenetrated Financial System 2 Leading Financial Institution in Latin America and Peru 3 Solid Growth and Profitability with Strong Efficiency Levels 4 Solid Asset Quality and Stable Funding Base 5 Disciplined and Conservative Capital Management 6 Comprehensive Business Strategy with Strong Governance Focus 3

4 Macroeconomic Outlook Peruvian Financial System

5 1 The Peruvian Financial System is an Attractive and Underpenetrated Market Loans & Deposits Penetration (% of GDP) (1) ATM s per each 100,000 adults (2) 92.8% % 50.6% 43.7% 39.4% 41.4% 24.8% 26.8% 54.6% 35.0% Peru Colombia Chile Mexico Brazil Peru Colombia Chile Mexico Brazil Gross Loans / GDP Deposits / GDP Past Due Loans +90 days / Gross Loans (3) Profitability (%) (4) 3.3% 18.5% 2.3% 2.8% 1.9% 2.5% 14.4% 11.8% 11.9% 10.2% 2.0% 2.2% 0.9% 1.2% 1.0% Peru Colombia Chile Mexico Brazil Peru Colombia Chile Mexico Brazil ROAE ROAA Note: Data from different sources may not be entirely comparable. (1) Source: SBS and Banking Regulatory Agencies of Chile, Colombia, Brazil and Mexico as of December 31, Data includes each country s Financial System Loans and Deposits. (2) Source: Banking Regulatory Agencies of each country as of December 31, (3) Past Due Loans with +90 days past due. Source: SBS for Peru and World Bank for Brazil, Chile and Colombia as of December 31, (4) Source: SBS and Banking Regulatory Agencies of each country as of December 31,

6 1 Behavior of Loans and Deposits are in Line with Economy Annualized Domestic Demand vs. Loans (% change YoY) 25% 20% 15% 10% 5% 0% mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 Volumes in S/BN Deposits by Currency Volumes in US$BN mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep Loans (% YoY) Domestic Demand (% YoY) LC FC Loans by Currency Dollarization (%) Volumes in S/BN Source: BCRP and SBS as of September Volumes in US$BN mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 LC FC mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 Loans Deposits 6

7 BCP Overview

8 2 BCP has One of the Best Banking Platforms in Latin America Local Loan Market Share (%) (1) Total Gross Loans to Deposits Ratio (%) 30.6% 25.7% 23.3% 17.8% 16.5% 16.5% 92.8% 105.5% 123.9% 130.0% 137.4% 139.8% BCP Bancolombia BBVA Bancomer Santander Chile Banco de Chile ITAU BBVA Bancomer Bancolombia ITAU Banco de Chile Santander Chile Efficiency (%) (2) ROAE (%) 39.20% 40.20% 42.77% 45.50% 46.02% 51.84% 19.6% 19.7% 21.4% 21.7% 23.4% 10.6% BBVA Bancomer Santander Chile ITAU Banco de Chile Bancolombia Bancolombia Banco de Chile Santander Chile ITAU BBVA Bancomer Source: Data from different sources may not be entirely comparable. (1) Market share is calculated for the Banking System. (2) (Operating Expenses excluding Other Operating Expenses) / (Gross Financial Margin + Banking Services Commissions + Net Gain on Foreign Exchange Transactions + Net Result from Derivatives Instruments). 8

9 2 BCP is the Leader in the Peruvian Financial System Leading Financial Institution in Peru (1) #1 in Loans (Market Share %) (1) Rank Market Share (%) Wholesale Loans 1 34% SME Loans 1 37% Microfinance Loans 1 28% Consumer Loans 1 18% Credit Cards 1 21% Mortgage Loans 1 31% Total Loans 1 31% 31% 19% 16% 8% Demand Deposits 1 33% Savings Deposits 1 35% Time Deposits 1 23% CTS Deposits 1 36% Total Deposits 1 30% BCP BBVA Scotiabank Interbank #1 in Deposits (Market Share %) (1) Most Profitable Bank (ROAE %) 30% 19% 22% 20% 16% 21% 13% 9% BCP BBVA Scotiabank Interbank BCP BBVA Scotiabank Interbank Source: SBS as of September 30, (1) Market share is calculated for the Peruvian Financial System. BCP unconsolidated figures plus Mibanco, BBVA figures include Financiera Confianza, Scotiabank figures include Crediscotia Financiera, and Interbank figures include Financiera Oh!. 9

10 2 BCP has a Convenient Distribution Network Branch Network National Coverage (1) BCP s Network has Expanded Steadily 36.6 Total Branches BCP Stand Alone- Number of transactions Monthly average (Millions of transactions) % % 9,187 9,065 9,109 9,257 8,793 8,042 8,419 8, ,621 2,345 2,332 2,344 2,332 2,091 2, ,844 2,226 1,485 5,732 6,098 5,986 6,017 6,173 5,713 5,820 5,157 4, Q17 Branches BCP ATMs Agentes Branches Mibanco* BCP Stand-Alone - Growth of Electronic Transactions (%) (2) 3% 70% 73% 76% 80% 84% 86% 89% 90% 91% 92% 92% 93% 93% 97% 30% 27% 24% 20% 16% 14% 11% 10% 9% 8% 8% 7% 7% Q Q17 Electronic channels Teller (1) Data considers BCP and Mibanco branches and excludes branches outside of Peru. Source: SBS as of September 30, *Includes Edyficar for the period ( ) Sources: BCP, SBS. 10

11 3 Solid Growth and Profitability Quarterly Highlights Profitability Net income (1) : S/ 820 million 9.9% QoQ and 9.1% YoY ROAE: 23.1% 84 bps QoQ and 71 bps YoY ROAA: 2.5% 18 bps QoQ and 14 bps YoY Loan portfolio Nominal growth: 1.3% QoQ and 0.2% YoY in quarter-end balances 0.5% QoQ and 0.6% YoY in average daily balances Provisions for loan losses: 21.6% QoQ and 16.4% YoY Cost of risk (1) : 1.51% 44 bps QoQ and 30 bps YoY NII & NIM Net interest income: S/ 1,788 million 2.6% QoQ and 0.6% YoY NIM: 5.62% 2 bps QoQ and 17 bps YoY NIM after provisions: 4.59% 33 bps QoQ and 8 bps YoY Efficiency Efficiency ratio (2) : 42.57% 167 bps QoQ and 118 bps YoY Capital CET1 ratio: 11.93% 39 bps QoQ and 129 bps YoY (1) Cost of risk = Annualized provisions for loan losses / Total loans. (2) Efficiency ratio for the period is calculated by dividing (i) operating expenses deducting other operating expenses by (ii) gross financial margin adding fees and commissions from banking services plus net gains on foreign exchange transactions plus net result from derivative instruments for the period. 11

12 3 Solid Growth and Profitability YTD Highlights Profitability Net income (1) : S/ 2,282 million 11.6% ROAE: 21.4% 176 bps ROAA: 2.3% 13 bps Loan portfolio Nominal growth: 0.6% in quarter-end balances 0.2% in average daily balances Provisions for loan losses: 1.6% Cost of risk (2) : 1.95% 4 bps NII & NIM Net interest income: S/ 5,290 million 2.4% NIM: 5.61% 15bps NIM after provisions: 4.28% 17 bps Efficiency Efficiency ratio: 42.77% 79 bps Capital CET1 ratio: 11.93% 85 bps 1. Net income from continuing operations. Net income from discontinued operations was S/0, and S/141 MM as of September 2017, and September 2016, respectively. 2. Cost of risk = Annualized provisions for loan losses / Total loans. 12

13 3 Loan Portfolio Loan Portfolio Evolution - Q-end vs. Avg. Daily Balances (S/ Millions) 86,709 86,327 85,793 86,046 86,545 86,141 85,891 86,195 84,733 85,091 4Q16 Q-end Total Loans (+1.3% QoQ) 1Q17 Total Loans avg. Daily balances (+0.5% QoQ) Loan Portfolio Mix Avg. Daily Balances Loan by currency Avg. Daily Balances 48.4% 47.8% 47.9% 47.4% 46.7% 66.1% 66.1% 65.0% 64.4% 64.4% 41.3% 41.6% 41.3% 41.6% 42.2% 33.9% 33.9% 35.0% 35.6% 35.6% 9.5% 0.8% 9.7% 0.8% 10.0% 0.9% 10.1% 0.9% 10.2% 0.8% 4Q16 1Q17 4Q16 1Q17 Wholesale Banking Retail Banking Microlending Others (1) Domestic currency Foreign Currency (1) From 1Q15 to 4Q15 includes BCP Bolivia, work out unit, and other banking. Since 1Q16 includes work out unit and other banking. 13

14 3 Loan Portfolio Growth Loan growth contribution QoQ (Average daily balances) Nominal growth +0.5% Real growth +0.6% 85, , Total Loans BCP - Wholesale Banking BCP - Retail Banking Mibanco US Dollar appreciation Total Loans Loan Portfolio Mix Avg. Daily Balances Nominal growth +0.6% Real growth +2.3% 85,806 1, , ,434 Total Loans BCP - Wholesale Banking BCP - Retail Banking Mibanco US Dollar appreciation Total Loans 14

15 3 Loan portfolio by segment Loans by Business Segment(1) 32% 16% 5% 9% 15% 8% 5% 10% 1% 31% 16% 5% 9% 15% 8% 5% 10% 1% 30% 17% 5% 10% 15% 8% 5% 10% 1% Corporate SME - Business Mortgage Credit Card Others (2) Middle - Market SME - Pyme Consumer Mibanco Loan portfolio evolution by segment(1) Loans Quarter % Part. % nominal change % real change S/ Millions QoQ YoY QoQ YoY Wholesale Banking 41,519 40,742 40, % -1.0% -2.9% -0.9% -0.4% Corporate 27,733 26,939 25, % -3.9% -6.6% -3.8% -4.1% Middle - Market 13,786 13,803 14, % 4.6% 4.7% 4.6% 7.2% Retail Banking 35,425 35,724 36, % 2.0% 2.8% 2.0% 3.9% SME - Business 4,460 4,433 4, % 6.1% 5.5% 6.2% 8.1% SME - Pyme 7,601 7,922 8, % 4.0% 8.4% 4.0% 8.6% Mortgage 12,617 12,584 12, % 1.3% 1.0% 1.3% 2.2% Consumer 6,448 6,502 6, % 0.2% 1.0% 0.2% 1.8% Credit Card 4,299 4,283 4, % -1.2% -1.6% -1.2% -1.0% Mibanco (2) 8,158 8,593 8, % 1.1% 6.5% 1.7% 8.6% Others (3) % -0.7% 4.5% -1.7% 5.3% Total 85,806 85,891 86, % 0.5% 0.6% 0.6% 2.3% (1) Average daily balances. (2) Includes work out unit, and other banking. 15

16 3 Loan portfolio by currency Loan dollarization by segment YoY(1) 5% of total loans 15% of total loans 4% 5% 27% 25% 50% 55% 52% 53% 15% 16% 11% 13% 6% 6% 50.4% 44.7% 47.6% 47.4% 94.6% 96.2% 73.5% 75.2% 85.2% 84.0% 88.7% 87.0% 93.6% 94.2% BCP Wholesale Banking BCP SME-Business BCP SME-Pyme BCP Mortgage BCP Consumer BCP Credit Card Mibanco PEN USD Loans Local currency loans (1) (Expressed in million PEN) Foreign currency loans (1) (Expressed in million USD) S/ Millions QoQ YoY % Part. QoQ YoY Wholesale Banking 20,946 18,460 18, % -14.0% 32.4% 5,941 6,711 6, % 15.2% 72.9% Corporate 14,009 11,765 11, % -20.6% 20.0% 4,071 4,609 4, % 14.5% 49.7% Middle - Market 6,937 6,695 6, % -0.6% 12.4% 1,870 2,102 2, % 16.7% 23.3% Retail Banking 27,890 28,366 28, % 3.6% 52.0% 2,198 2,245 2, % 2.8% 24.1% SME - Business 2,121 2,117 2, % 5.1% 4.0% % 6.9% 7.6% SME - Pyme 7,187 7,599 7, % 10.3% 14.3% % -23.8% 1.1% Mortgage 9,273 9,413 9, % 3.4% 17.3% % -1.7% 10.4% Consumer 5,494 5,471 5, % -0.5% 9.8% % 14.4% 3.4% Credit Card 3,815 3,766 3, % -3.5% 6.6% % 17.8% 1.7% Mibanco 7, % 9.1% 15.0% % -5.3% 1.3% Others (2) % 17.3% 0.6% % -4.4% 1.6% Total 56,758 55,346 55, % -2.1% 100.0% 8,431 9,237 9, % 11.3% 100.0% % Part. (1) Average daily balances. (2) Includes work out unit, and other banking. 16

17 3 Strong Efficiency Levels and Stable Margins Net interest income (S/ Millions) Efficiency (%) (2) -3% -2% +0.6% +2.4% 5,166 5, % 44.2% 42.6% 43.6% 42.8% +2.6% 1,777 1,743 1,788 7,084 7,279 2, , , ,918-1,989 Interest Income Sep-16 Interest Expense Sep-17 Sep-16 Sep-17 Net Interest Margin P&L Breakdown - Variations Sep16 vs. Sep17 (PEN Bn) 8.4% 8.2% 8.4% 8.1% 8.1% 2, , % 4.5% 5.5% 4.2% 5.6% 4.6% 5.5% 4.1% 5.6% 4.3% NIM NIM after provisions Sep-16 NIM on loans Sep-17 Net Income Sep-16 Fin. Income Fin.Expense Prov.of Losses Non Int. Income Oper. And Other Exp. & Tax Net Income Sep-17 Source: BCP consolidated figures as of June 30, (1) Non-Interest Income: Banking Services Comissions (net) + Net Gain (Loss) on Sale of Securities + Net Gain on Foreign Exchange Transactions + Other Non-Financial Income. (2) (Operating Expenses Other Operating Expenses ) / (Gross Financial Margin + Banking Services Commissions + Net Gain on Foreign Exchange Transactions + Net result from derivative instruments). (3) Net Interest Margin represents net interest income divided by average interest-earning assets. 17

18 4 Strong Asset Quality and Ample Coverage Levels Cost of Risk & Provisions Coverage Ratios (%) (1) 1.81% 2.14% 2.45% 1.96% NPL Ratio 156% 161% 153% 154% 158% 119% 122% 116% 119% 111% 1.51% 3.84% 3.83% 0.90% 0.93% 4.13% 4.14% 0.99% 1.04% 4.41% 1.21% % 2.64% 2.93% 3.13% 3.20% 4Q16 1Q17 Cost of Risk Provisions Past Due Loans by Currency (%) 4Q16 1Q17 PDL Ratio Ref. & Restr. Ratio PDL Coverage Ratio Ref. & Restr. Coverage Ratio BCP Stand Alone - Past Due Loans by Days Overdue (as a % of Total Loans) (2) 3.48% 3.49% USD 3.84% PEN 3.81% 3.97% PDL days overdue PDL 90 days overdue % 1.80% 1.87% 1.85% 1.77% Q16 1Q17 4Q16 1Q17 Source: BCP consolidated figures as of September 30, (1) (i) PDL Ratio: Past Due Loans (+16 days) / Total Gross Loans; (ii) Ref. & Restr. Ratio: Refinanced + Restructured Loans / Total Gross Loans; (iii) PDL Coverage Ratio: Total Reserve for Loan Losses / Past Due Loans (+16 days); (iv) Ref. & Restr. Coverage Ratio: Reserve for Loan Losses / (Past Due Loans (+16 days) + Refinance & Restructured Loans); (v) NPL Ratio: Past Due Loans (+16 days) + Ref. & Rest. Ratios. (2) Source: SBS. BCP unconsolidated figures as of September 30,

19 4 Cost of Risk by Segment SME - Pyme Credit Card Consumer Wholesale SME - Business Mibanco Mortgage 8.86% 8.10% 7.95% 7.93% 7.56% 5.71% 4.97% 5.04% 5.19% 4.83% 4.94% 4.40% 3.35% 4.26% 4.13% 3.70% 3.78% 3.71% 3.77% 3.17% 2.35% 1.02% 0.50% 0.62% 0.49% 1.28% 0.94% 0.22% 0.69% 0.43% 0.21% 0.57% 0.56% 0.06% -0.05% 4Q16 1Q17 19

20 4 Past Due Loans by Segment SME - Pyme Credit Card Consumer Wholesale SME - Business Mibanco Mortgage 12.70% 12.41% 13.14% 12.40% 12.44% 5.79% 5.01% 4.74% 4.51% 3.07% 4.65% 4.49% 4.39% 3.02% 4.99% 4.59% 2.93% 5.01% 4.56% 4.32% 3.01% 4.89% 4.66% 4.60% 2.98% 2.65% 2.66% 2.89% 2.92% 2.96% 0.28% 0.29% 0.31% 0.43% 0.48% 4Q16 1Q17 20

21 4 Portfolio quality and Cost of risk S/ Billions % 7.02% 12.22% 10.29% 9.19% 7.57% 12.93% 12.86% 8.13% 3.06% 3.18% 3.36% 10.61% 10.73% 10.57% 6.69% 14.17% 15.44% SME - Pyme 11.54% 12.00% 11.91% 6.03% 6.50% 6.88% 16.08% 15.89% 15.06% 11.10% 12.43% 6.24% 6.02% 5.55% 16.15% 16.37% 16.08% 15.84% 12.91% 12.70% 12.41% 6.24% 5.71% 2.88% 2.76% 2.72% 3.01% 2.79% 2.33% 2.75% 2.91% 2.76% 13.14% 4.97% 4.94% 16.67% 16.22% 16.09% 12.40% 12.44% 4.13% 3.77% 2.19% 2.22% 1.91% 1.80% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) SME - Business S/ Billions % % 5.30% 4.59% 5.05% 4.78% 4.24% 4.09% 5.06% 4.38% 5.88% 5.91% 5.56% 4.88% 4.96% 4.73% 6.01% 6.31% 5.55% 5.21% 6.00% 5.29% 6.83% 6.07% 6.31% 5.66% 5.99% 5.01% 5.79% 5.01% 4.89% 4.49% % 0.64% 1.71% 1.08% 1.50% 1.09% 0.96% 1.99% 1.55% 1.44% 0.77% 1.02% 2.35% 0.94% 0.69% 0.57% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) (1) Cost of risk = Annualized provisions for loan losses / Total loans. 21

22 4 Portfolio quality and Cost of risk Consumer S/ Billions % 6.55% 6.69% 6.37% 6.50% 6.40% % 5.97% 6.03% 6.13% 5.79% 5.91% 6.02% 5.48% 5.60% 5.86% % 4.94% 5.05% 5.84% 5.82% 5.95% 5.19% % 5.34% 5.55% 5.54% 4.83% 5.12% 4.26% 2.96% 3.07% 3.02% 2.17% 2.21% 2.42% 2.38% 2.35% 2.44% 2.42% 2.62% 2.71% 2.93% 3.70% 3.71% % 2.98% 2.16% % 2.21% 1.91% 1.97% 1.88% 1.73% 1.95% 1.90% 1.97% 2.10% 2.31% % 1.82% 1.63% 1.66% 1.64% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) Credit Card S/ Billions % 9.71% 9.00% 9.16% 9.18% 8.54% 8.86% % 8.04% 8.10% 7.95% 7.93% 6.62% 6.77% 7.06% 7.28% 7.35% 7.56% % 5.81% 6.06% 6.35% 5.90% 5.90% 5.78% 6.05% % 4.94% 4.87% 4.96% 4.85% 5.10% % 5.91% % 5.04% 4.86% 5.02% 4.74% 4.65% 4.99% 4.26% 4.12% 4.12% 3.93% 4.17% 4.32% 4.60% % 3.16% 3.14% 2.69% 2.47% 2.33% 2.44% 2.62% 2.86% 3.00% % 2.24% 2.56% 2.68% 2.44% 2.34% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) (1) Cost of risk = Annualized provisions for loan losses / Total loans. 22

23 4 Portfolio quality and Cost of risk Mortgage S/ Billions % 3.18% 3.18% 2.80% 2.81% % 2.57% 2.29% 3.01% % 2.96% 1.90% 1.97% 2.04% 2.10% 2.65% 2.66% % 2.40% 1.49% 1.60% 1.69% 1.73% 2.10% % 1.48% 1.73% 1.79% 1.88% 1.92% 1.16% 1.57% 1.61% 1.02% 1.03% 0.80% 0.88% 0.81% 0.91% 0.97% 0.96% 0.88% 0.97% % 0.79% 0.68% 0.67% 0.62% 0.95% 0.82% % 0.78% 0.80% 0.90% 0.22% 0.58% 0.54% 0.53% 0.62% 0.61% 0.50% 0.49% 0.43% 0.56% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) Wholesale S/ Billions % % 0.21% 0.25% 0.35% 0.37% 0.36% 0.25% 0.28% 0.74% 0.65% 0.62% 0.62% 0.60% 0.63% 0.52% 0.53% 0.51% 0.42% 0.42% 0.44% 0.48% 0.41% 0.33% 0.35% 0.34% 0.43% 0.21% 0.28% 0.48% 0.32% 0.35% 0.32% 0.32% 0.26% 0.28% 0.27% -0.04% 0.32% 0.06% 0.33% 0.18% 0.28% 0.29% 0.31% 0.21% -0.05% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) (1) Cost of risk = Annualized provisions for loan losses / Total loans. 23

24 4 Portfolio quality and Cost of risk Mibanco S/ Billions % 5.11% 3.58% 6.96% 7.08% 6.76% 5.58% 5.68% 5.49% 6.75% 5.63% 5.61% 7.00% 6.00% 4.60% 7.38% 6.50% 4.88% 6.39% 5.42% 3.93% 5.81% 5.74% 4.76% 4.68% 4.27% 3.18% 5.74% 4.67% 3.37% 5.61% 4.51% 3.17% 5.56% 5.75% 5.85% 5.99% 5.04% 4.39% 4.59% 4.56% 4.66% 4.40% 3.74% 3.78% 3.35% 3.43% Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 4Q16 1Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Adjusted Cost of risk (2) (1) Cost of risk = Annualized provisions for loan losses / Total loans. (2) Adjusted cost of risk of March 2017 and June 2017 calculated eliminating provisions related to the El Nino weather phenomenon. 24

25 4 Solid and Diversified Balance Sheet Asset Structure (S/ Billions) Liability & Equity Structure (S/ Billions) Gross Loans Investments Other assets (1) Deposits and Obligations Bonds and subordinated notes issued Equity Cash & Due from banks Reserve for loan losses Due to banks Other liabilities (2) % 64.7% 64.4% 59.1% 61.0% 61.0% 19.8% 11.4% -3.1% 5.1% 21.0% 13.3% 4.2% -3.2% 19.0% 15.9% -3.2% 3.9% 6.8% 10.9% 13.1% 10.1% 6.5% 10.8% 11.2% 10.5% 7.0% 10.7% 10.4% 10.9% Foreign Currency 48.4% 49.4% 47.9% 48.4% 49.2% 47.8% Loan / Deposit Ratio BCP Stand Alone - Total Commercial Loans by Sector (%) 143.3% 113.0% 149.0% 116.7% 136.2% 108.2% 132.4% 106.1% 127.8% 105.5% 2% 7% 12% 19% Manufacturing Commerce Communication, Storage and Transportation Construction 81.0% 83.1% 78.6% 78.5% 79.9% 9% Leasholds and Real Estate Activities Agriculture 4Q16 1Q17 2% 11% 9% 9% 20% Mining Electricity, Gas and Water Fishing Others (3) Loans/Deposits ratio in PEN Total Loans/Deposits ratio Loans/Deposits ratio in USD Figures include Mibanco s results. (1) Includes Trading securities, Property plant and equipment, Due from customer acceptances and Other assets. (2) Includes Acceptances outstanding, Repurchase Agreements (including that with BCRP) and Other Liabilities. (3) Includes cattle raising, education, public administration, social services, among others. 25

26 4 Stable and Diversified Funding Base Evolution of Funding Structure & Cost Funding Structure by currency 2.14% 9% 10% 14% 2.10% 8% 10% 14% 2.13% 9% 9% 14% 2.09% 9% 8% 14% 2.05% 9% 7% 14% Local Currency 6% 8% 15% Foreign Currency 21% 10% 68% 68% 68% 69% 70% 71% 69% 4Q16 1Q17 Due to banks and correspondents (2) Bonds and subordinated debt BCRP Instruments Depósits Funding cost (1) Funding Structure by tenure (original term) 48% Bonds and subordinated debt BCRP Instruments Due to banks and correspondents (2) Deposits Funding Structure by tenure (months to maturity) 37% 33% 15% 10% 13% 11% 15% 5% 5% 3% 6% Up to 3 months From 3 to 6 months From 6 to 12 months From 1 to 2 years From 2 to 5 years Greater than 5 years (1) Calculated as interest paid/principal outstanding. (2) Includes bilateral loans, trade loans and repurchase agreements with third parties 26

27 4 BCP Stand-Alone - Sound Deposits Base Total Deposits Breakdown(1) (S/ Millions) Deposit Dollarization(1) % % % % % 21% 22% 22% 24% 23% 48.1% 47.7% 48.3% 47.8% 49.0% 32% 32% 33% 32% 33% 37% 37% 36% 34% 35% 51.9% 52.3% 51.7% 52.2% 51.0% 4Q16 1Q17 4Q16 1Q17 Severance Indemnity Deposits (CTS) Time Deposits (3) Savings Deposits Demand Deposits PEN USD Deposits Implicit Rate Deposits Consolidated Evolution and Participation(2) 1.71% 1.71% 1.68% 1.64% 1.56% S/. Millions QoQ YoY BCP Peru 69,585 73,219 74, % 7.34% 0.99% 0.99% 1.00% 1.02% 1.00% Mibanco 6,601 7,029 7, % 6.36% 0.33% 0.33% 0.37% 0.46% 0.47% Eliminaciones % % BCP Consolidated 76,143 80,169 81, % 7.27% Mibanco 4Q16 1Q17 9% PEN USD Total 91% BCP Peru (1) In average-daily balances (2) In quarter-end balances (3) Time deposits includes certificates of deposit (CDs). 27

28 4 BCP Stand-Alone - Deposits by business segment (1) Total Deposits Savings Deposits 16% 21% 18% 0% 6% 1% 0% 4% 0% 20% 21% 21% 94% 98% 96% 63% 58% 61% PEN USD Total PEN USD Total Corporate Middle-market Retail Corporate Middle-market Retail Time Deposits Demand Deposits 33% 35% 34% 29% 31% 30% 39% 42% 41% 31% 27% 29% 29% 23% 25% 40% 42% 41% PEN USD Total PEN USD Total Corporate Middle-market Retail Corporate Middle-market Retail (1) It is important to note, that 100% of Severance indemnity deposits (CTS) come from individuals. 28

29 4 BCP Stand-Alone - Bonds and subordinated debt Breakdown of international bonds Bond Issue date Due date Tenure (years) Currency Issued Amount Original Currency (000) Outstanding Amount (S/000) Coupon rate Hybrid 01/11/ /11/19 (1) 60 (1) USD 250, , % Subordinated (2) 07/11/ /11/ USD 2,960 9, % Subordinated 16/09/ /09/21 (1) 15 (1) USD 476,120 1,554, % Subordinated (3) 24/04/ /04/22 (1) 15 (1) USD 720,000 2,350, % Corporate 16/09/ /09/ USD 800,000 2,612, % Corporate (5) 01/04/ /04/ USD 716,301 2,338, % Corporate 09/07/ /01/ USD 230, , % Corporate 25/10/ /10/ USD 300, , % Corporate 31/10/ /10/ PEN 2,000,000 2,000, % Total 13,412,922 (1) Call date 10 years (2) Result after the exchange of notes with the BCP26. (3) Result after reopening for US$170,000,000 in April 2013 and US$200,000,000 in January (4) Result after the exchange of notes with the BCP23. (5) Result after the exchange of notes with the BCP16. 29

30 5 Disciplined and Conservative Capital Management BCP at Basel II BCP at Basel III 15.56% 15.35% 16.73% 16.71% 16.35% 10.64% 11.08% 10.92% 11.54% 11.93% 10.53% 10.41% 11.76% 11.75% 11.47% 4Q16 1Q17 4Q16 1Q17 Tier 1 ratio (3) BIS ratio (2) Common Equity Tier 1 ratio (4) Common Equity Tier 1 ratio September 2017 Common Equity Tier 1 ratio June % 0.06% 11.55% 2.48% -0.72% 11.93% 11.83% 1.74% -0.70% 11.54% -1.44% -1.39% Capital and reserves Retained earnings Unrealized gains (losses) Goodwill and intangibles Investments in subsidiaries CET1 () Capital and reserves Retained earnings Unrealized gains (losses) Goodwill and intangibles Investments in subsidiaries CET1 () (1) Peru GAAP. (2) Regulatory Capital / Risk-weighted assets. (3) Tier 1 / Risk-weighted assets. Tier 1 = Capital + Legal and other capital Reserves + Accumulated earnings with capitalization agreement + Unrealized profit and net income in subsidiaries - Goodwill - (0.5 x Investment in Subsidiaries) + Perpetual subordinated debt (maximum amount that can be included is 17.65% of Capital + Reserves + Accumulated earnings with capitalization agreement + Unrealized profit and net income in subsidiaries - Goodwill). (4) Common Equity Tier I = Capital + Reserves 100% of applicable deductions (investment in subsidiaries, goodwill, intangibles and deferred tax that rely on future profitability) + retained earnings + unrealized gains. 30

31 6 Comprehensive Business Strategy Motivated Employees Our employees are the engine of our organization. For them, we have set ourselves the challenge of becoming the best option to work in the country. Happy Customers We want our customers to be at the center of our decisions and to live a unique brand experience. For them we renew our image and our promise and we will work until we become the Bank most focused on its Clients". Outstanding Risk Management We have led the Peruvian market for 126 years, being a model in risk management. Efficient Growth We aim to continue growing, but efficiently, guaranteeing our leadership in the market for the next 126 years. 31

32 6 Strong Governance Focus Governance structure General Shareholder s Meeting Board independence Independent directors Board of Directors Chairman Non-independent directors Dionisio Romero Paoletti Vice - Chairman Raimundo Morales Dasso* Board of directors tenure Roque Benavides Ganoza* Barbara Bruce Ventura* Benedicto Cigueñas Guevara* Fernando Fort Marie Martin Perez Monteverde (Deputy) Directors Eduardo Hochschild Beeck* Reynaldo Llosa Barber Luis Montero Aramburu* Juan Carlos Verme Giannoni* Patricia Lizárraga Guthertz* Luis Enrique Romero Belismelis 10+ years 5-10 years 0-5 years Board Committees Independent internal and external audit * Independent directors. 32

33 Appendix

34 BCP Stand-Alone - Ratings Local Credit Rating Agencies International Credit Rating Agencies Bank AAI (1) Date is updated when there is a change in the outlook or rating. Equilibrium Date of last review dec-16 dec-16 Institution A+ A+ Long Term Debt AAI Equilibrium Corporate Bonds AAA AAA Mortgage Bonds AAA Leasing Bonds AAA AAA Long Term Deposits AAA AAA Short Term Debt AAI Equilibrium Short Term Deposits CP-1+ EQL 1+ CDs CP-1+ EQL 1+ Capital Debt AAI Equilibrium Subordinated Tier II AA+ AA+ Bank Fitch S&P Moody s Date of last review(1) may-17 oct-17 jun-15 Outlook Stable Stable Stable Issuer rating BBB+ BBB+ Baa1 Foreign Currency Fitch S&P Moody s Long term BBB+ BBB Baa1 Short term F2 A-2 P-2 Local Currency Fitch S&P Moody s Long term BBB+ BBB Baa1 Short term F2 A-2 P-2 Outstanding Debt (144A/RegS) Fitch S&P Moody s Subordinated BCP 2021 BBB+ BBB- Baa3 Subordinated BCP 2022 BBB+ BBB- Baa3 Subordinated BCP 2026 BBB+ BBB- Baa3 Subordinated BCP 2027 BBB+ BBB- Baa3 Junior Subordinated 2069 BBB BB Senior BCP 2018 (US$ 230MM) BBB BBB Baa1 Senior BCP 2019 (US$ 300MM) BBB BBB Baa1 34

35 Credicorp s Organizational Structure 100.0% 97.7 % 99.9 % 98.7 % 100.0% 100.0% Inversiones Credicorp Bolivia S.A. Peru Bolivia Colombia Chile Inversiones IMT S.A. Credicorp Capital Securities Inc. Source: Credicorp as of June 30,

36 Credicorp BCP Credicorp: 128 years of History Founded as Banco Italiano Changes its name to Banco de Credito del Peru Nationalization attempt BCP acquires Banco Popular de Bolivia Release of the new corporate identity Acquisition of Financiera Edyficar Acquisition of Mibanco It becomes Peru s main financial institution Crisis and restructure of the financial system. Reduction of number of banks BCP acquires BSCH Peru ASHC is created Credicorp is created and listed in NYSE (NYSE: BAP) Creation of Pacifico Health AFP Union Vida is acquired Vertical integration in health insurance business Private Equity business with Carlyle Group Insurance brokerage business with Willis Creation of Pacifico Vida AFP Prima is created Acquisition ALICO s stake in PPS and PV Investment Banking Source: Credicorp as of June 30,

37 Selected Financial Information Income Statement Summary (PEN in millions) Sep-16 Sep-17 YoY Growth Financial income 2,423 2,416 2,447 7,084 7, % Financial expense ,918-1, % Gross financial margin 1,777 1,743 1,788 5,166 5, % Provision for loan losses % Gross financial margin after provision for loan losses 1,387 1,327 1,462 3,884 4, % Gain (loss) for exchange difference % Net financial margin 1,390 1,329 1,464 3,855 4, % Fees and commissions from banking services ,640 1, % Net results from derivatives % Net gains (loss) from sales of securities % Net gains on foreign exchange transactions % Other income % Operating expenses -1,125-1,141-1,117-3,272-3, % Income before workers profit sharing and income tax 1,023 1,014 1,138 2,807 3, % Income tax % Net income from continuing operations ,044 2, % Net income from discontinuing operations % Net income ,185 2, % Source: BCP consolidated figures as of September 30, Peru GAAP unaudited. 37

38 Selected Financial Information Balance Sheet Summary (PEN in millions) YoY Growth Cash and due from banks and interbank funds 25,534 27,624 25, % Investments at fair value through profit or loss and available-forsale investments, net 14,705 17,458 21, % Gross loans 86,046 85,091 86, % Allowance for loan losses -3,940-4,177-4, % Other assets 6,567 5,520 5, % Total assets 128, , , % Deposits and obligations 76,143 80,169 81, % Due to banks, correspondents and other entities, and interbank funds 8,781 8,512 9, % Bonds and subordinated notes issued 14,068 14,244 14, % Other liabilities 16,886 14,790 13, % Total liabilities 115, , , % Shareholders equity attributable to BCP equity holders 13,034 13,800 14, % Source: BCP consolidated figures as of September 30, Peru GAAP unaudited. 38

39 Selected Financial Information Main Ratios (%) Sep-16 Sep-17 YoY Growth ROAE 23.82% 22.25% 23.11% 23.19% 21.43% -7.6% ROAA 2.34% 2.28% 2.48% 2.20% 2.33% 5.8% Cost of risk 1.83% 1.96% 1.52% 1.96% 1.94% -1.0% Past due loans ratio 2.94% 3.10% 3.20% 8.8% Non-performing loans ratio 3.84% 4.14% 4.41% 14.7% PDL Coverage ratio % % % -1.4% NPL Coverage ratio % % % -6.6% Net interest margin 5.78% 5.53% 5.62% 5.46% 5.61% 2.8% Net interest margin after provisions 4.51% 4.21% 4.59% 4.10% 4.28% 4.2% Efficiency 43.75% 44.24% 42.57% 43.56% 42.77% -1.8% CET1 ratio BIS ratio Source: BCP consolidated figures as of September 30, Peru GAAP unaudited. 39

40 Board of Directors Dionisio Romero Paoletti President Member of the Board since 2003, and Chairman since Raimundo Morales Dasso Vice President From October 1990 until March 2008, served as the Bank s General Manager. Serves as Deputy Chairman of the Board of Credicorp and several of its subsidiaries Fernando Fort Marie Patricia Lizárraga Guthertz* Juan Carlos Verme Giannoni* Luis Montero Aramburú* Eduardo Hochschild Beeck* Director since 1990 and Director of Credicorp since He serves as Director at Inversiones Centenario, among others. Has over 25 years of experience in M&A, capital markets, private equity and valuation. Joined the Board this year. Director of the Bank since 1990 and Director of Credicorp since 1995 Director of the Bank since 2015 with 40 years of experience in the financial sector Chairman of the board of Hochschild Mining & Cementos Pacasmayo and member of the board of various companies Benedicto Cigüeñas Guevara* Former CFO of BCP (from 1992 to 2004) Barbara Bruce Ventura* Director since 2015 with broad experience leading Oil & Gas companies Luis Enrique Romero Former Vice- President of the board of Alicorp S.A.A.S Serves as Director of various companies from the Romero Group. Martin Perez Monteverde Serves as Deputy Chairman. Director since Former Minister of State in the Portfolio of Foreign Trade and Tourism. Roque Benavides Ganoza* Director and the Executive President of Compañia de Minas Buenaventura S.A. and current Chairman of CONFIEP (1) *Independent directors Source: BCP as of September 30, 2017 (1) Confederacion Nacional de Instituciones Empresariales Privadas. 40

41 Experienced Management Team General Manager Joined BCP in Master s degree in Management from the Arthur D. Little Management School in Cambridge, Massachusetts. Walter Bayly Gianfranco Ferrari Deputy General Manager Joined BCP in MBA from J.L. Kellogg Graduate School of Management. Reynaldo Llosa Fernando Dasso Pedro Rubio Percy Urteaga Risk Central Manager Joined BCP in MBA from J.L. Kellogg Graduate School of Management. Planning and Finance Central Manager (CFO) Joined BCP in MBA from Wharton School of Business. Wholesale Banking Central Manager Joined BCP in Industrial engineer with a degree from North Carolina State University. Retail Banking and Wealth Management Central Manager Joined the group in MBA from IESE. Source: BCP as of September 30,