Fixed Income Presentation. Fourth Quarter 2017

Transcription

1 Fixed Income Presentation Fourth 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 Latam & Peru

5 1 Peru: a brief introduction Peru at a glance LatAm: CDS to 5 years (As of Feb 14th) Economic Indicators (2016) GDP (Billions) USD Exports (Billions) USD 37.0 Copper USD 10.2 Gold USD 7.4 Agriculture USD 5.6 Imports (Billions) USD 35.1 Gas and Fuels USD 3.8 Credit / GDP (%) 40.9% Socio-Demographic Indicators (2016) Brazil Mexico Colombia Peru Chile Sovereign Ratings Population 31.5 million Urban Population (%, 2015) 76.7% Rural Population (%, 2015) 23.3% Economically Active Population (EAP) 16.5 million Urban EAP 12.6 million GDP per Capita USD 6,205 GDP per Capita (ppp) USD 12,913 Poverty Rate (%) 20.7% Sources: Bloomberg, BCRP, INEI, BCP Economic Research Rating Scale Peru Brazil Chile Colombia México AA- / Aa3 *+7 Moody's (negative) A+ / A1 *+6 S&P (stable) A / A2 *+5 Fitch (stable) A- / A3 *+4 Moody's (stable) BBB+ / Baa1 *+3 S&P (stable) Fitch (stable) BBB / Baa2 *+2 BBB- / Baa3 *+1 S&P (stable) BB+ / Ba1 *-1 BB / Ba2 *-2 Moody's (stable) Fitch (negative) BB- / Ba3 *-3 S&P (stable) Moody's (negative) S&P (stable) Fitch (stable) Moody's (stable) Fitch (stable) 5

6 1 Peru s economic performance and outlook remain above LatAm peers GDP Growth (real, %) Inflation (%) e Peru Chile Colombia Mexico Brazil Current Account Balance (% of GDP) e Peru Chile Colombia Mexico Brazil Fiscal Balance (% GDP) Peru Chile Colombia Mexico Brazil e Peru Chile Colombia International Reserves (% GDP) Peru Chile Colombia Mexico Brazil Public Debt (% GDP) e Peru Chile Colombia Mexico Brazil e *Forecasts by BCP Economic Research as of February, Sources: BCP, IMF, BCRP, LatinFocus (Jan-18) and Bloomberg. e: estimates e 6

7 Solid macroeconomic fundamentals persist Peru will still out-perform the main economies of the region (Brazil, Mexico, Argentina, Colombia and Chile) We lowered our GDP growth forecast from 4.2% to 3.5% due to political uncertainty and risks in the construction sector. Local headwinds will stop Peru from growing close to 5% (in line with the average growth of the past 25 years). Some tailwinds: Favorable international environment. Counter-cyclical monetary and fiscal policies. Some headwinds: Further deter of business and consumer expectations due to political tensions and the outcome of the Construction Club scandal GDP and Domestic Demand Growth (% change) GDP Growth forecast for 2018 (% change) Average : GDP 4.9% DD: 5.0% GDP Domestic Demand Peru Chile Argentina Colombia Mexico Brazil Source: BCP Economic Research, IMF (Jan-18),Credicorp Capital, BCRP 7

8 Sov 2020 Sov 2023 Sov 2024 Sov 2026 Sov 2028 Sov 2031 Sov 2032 UST2Y UST10Y 1 Favorable international environment 2018 will be a better year for GDP and Domestic Demand Commodity price change (% change Jan-18 vs Jan-16) Changes in Sovereign yields and UST (% change y/y in basic points, as of 14-Feb-18) Zinc Copper Gold The IMF recently made upwards revision to the world GDP growth forecast for 2018 from 3.7% to 3.9% (third consecutive upward revision and highest expansion in 7 years). Price of copper stands around USD/lb. 3.20%, almost 60% above the observed two year ago. Moreover, the price of zinc stands close to a 10-year high. Despite political turmoil, demand for Peru from foreign investors remains robust due to the strong macroeconomic fundamentals (Sovereign yields have fallen, on average, 165bps in the past year). Source: Bloomberg 8

9 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Jan-18 Poland Russia South Africa China Colombia Chile Thailand Mexico Panama India Malaysia Peru Indonesia 1 Fiscal Policy The Ministry of Finance faces important short and medium-term challenges Public Investment of the General Government in real terms (% change y/y) Fiscal Revenues in emerging markets with investment grade in 2017 (% of GDP) The fiscal deficit closed 2017 at 3.2% of GDP, the highest print in 17 years. Fiscal Revenues represented 18.0% of GDP, the lowest print in 14 years. The main challenges for the Ministry of Finance in the short and medium term are: Ensuring Public Investment grows at two-digit rates (1H17: -10% y/y). Substantially increasing fiscal revenues (VAT Peru: 18%, VAT Chile & Colombia: 18-19%). Complying with the commitment from the Government to narrow the fiscal deficit from 3.5% in 2018 to 1.0% by Notable improving the quality of public spending, as well as prioritizing public investment projects and Public-Private Partnerships (PPP s). Several years of subdued growth and persistent inability to comply with fiscal targets could trigger a change in the sovereign credit rating to negative in Source: BCRP, IMF 9

10 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Jan-04 Oct-04 Jul-05 Apr-06 Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 Oct-13 Jul-14 Apr-15 Jan-16 Oct-16 Jul-17 Apr-18 1 Monetary Policy The Central Bank has lowered its policy rate 125bps since Apr Inflation forecast (%) Headline Inflation Core Inflation BCRP vs FED key rate spread (basic points) In Jan-18 headline inflation stood at 1.3% y/y, below the mid-point of the target range (1-3%), and the lowest print in 8 years. Core inflation stood at 2.0% y/y (Dec-17: 2.2%), the lowest print in 5 years. We expect annual inflation to stand below 1.0% y/y in temporarily during March. Thereafter it will gradually accelerate and close the year close to 2.5% We expect a new 25bps rate cut from the BCRP (current: 3.00% and -125bps since Apr-17) due to the decrease of annual inflation and a negative output gap which narrows at a slower pace. We see this rate cut occurring in March. However, currently we can not discard further rate cuts. As the Central Bank lowers the policy rate and the FED hikes its policy rate, the key rate spread will narrow Source: INEI, BCRP, Fed, BCP Economic Research 10

11 1Q02 4Q02 3Q03 2Q04 1Q05 4Q05 3Q06 2Q07 1Q08 4Q08 3Q09 2Q10 1Q11 4Q11 3Q12 2Q13 1Q14 4Q14 3Q15 2Q16 1Q17 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 1 FX and External Accounts Strong Trade Surplus in 2018 and PEN appreciation pressures Trade and Current Account Balance (% of GDP, 4-quarters-rolling) Latam Currencies (Jan-13=100) 12.0 Trade Balance Current Account Balance PEN CLP COP MXN BRL This year we expect the trade surplus to reach its highest print in 7 years as the price of copper stands around USD/lb (+60% compared to twoyears ago) and the price of zinc stands close to a 10-year high. Weexpect the exchange rate to close 2018 between the range USDPEN , with the balance of risks pointing towards PEN appreciation. Central Bank intervention will be key this year after in 2017 it made net purchases for USD 5,248 million, the highest since Nonetheless, the towards the end of year depreciation pressures could emerge as the FED raises its monetary policy rate. Source: BCRP, Bloomberg, BCP Economic Research, 11

12 PER BOL ARG COL URU CHI BRA MEX ECU VEN 1 Growth Potential Expected GDP Growth (Var. % y/y) Financial Penetration 2016 (%) (1) CHI BRA COL PER Real GDP Per Capita (1975=100) 1975 GDP per Capita similar to 2006 level Source: BCRP, IMF, JPMorgan, LatinFocus (Jan-18), BCP Economic Research (1) Loans to the Private Sector/ GDP.. Favorable demographic structure Total Dependency Ratio Elderly Dependency Ratio Youth Dependency Ratio

13 1 Infrastructure Investment Infrastructure investment projects Investment in transport infrastructure (USD Millions) Project *Amazonian Hydroid. Source: Apoyo Consultoría, BCRP, Cosapi, MEF, MINAGRI, MINEM, Proinversión, Plan Nacional de Infraestructura , media Investment (US$ Millions) Reconstruction El Niño 7,000 Line 2 of Lima s Metro 5,400 Extension of Refinery Talara 5,400 Periferical Roadway Ring of Lima 2,000 Chancay Port 1,850 Jorge Chavez Airport Expansion 1,500 Northern Pier 730 Chavimochic III 630 Panamerican Games 550 Majes Siguas II 540 San Gabán III 500 L.T. Moyobamba-Iquitos 500 Longitudinal de la Sierra Road Project (Section 4) 464 Sol Highway (Trujillo-Sullana) 398 Expansion of Road Network Road Network 4 (Northern Roadway) 286 San Martin s Portuary Terminal 250 Longitudinal de la Sierra Road Project (Section 2) 249 Chilca Uno Expansion 140 Expansion of Road Network IIRSA Center (Section 2) Transmission Line Azángaro Puno Total 29,016 13

14 1 Growing Middle Class Size Number of people earning over USD 15k per annum (thousands, metropolitan areas) Geography Rank % change Absolute Change Mexico: Mexico City 1 3, , % 5,668.3 Brazil: Sao Paulo 2 3, , % 4,804.6 Argentina: Buenos Aires 3 3, , % 2,864.5 Brazil: Rio de Janeiro 4 2, , % 3,397.7 Chile: Santiago 5 1, , % 2,231.8 Peru: Lima , % 2,772.1 Mexico: Guadalajara , % 1,531.1 Brazil: Belo Horizonte , % 1,127.8 Colombia: Bogota , % 1,203.3 Brazil. Brasilia , % 1,041.8 Growth Number of people earning over USD 15k per annum (thousands, metropolitan areas) Geography Rank % change Bolivia: Santa Cruz % Bolivia: Cochabamba % Bolivia: La Paz % Ecuador: Guayaquil % Peru: Chiclayo % Peru: Arequipa % Peru: Trujillo % Haiti: Port-au-Prince % Paraguay: Asunción % Peru: Lima , % Source: The Economist Intelligence Unit: Quantifying market opportunities in Latin America s cities (feb-17) 14

15 1 GDP by economic sectors Between , Peru s GDP has registered a +4.9% compounded annual growth 550,000 % of GDP 17 CAGR ,000 Others 49.6% 5.8% 450,000 Electricity 1.8% 5.5% 400, ,000 Commerce 10.9% 5.5% 300,000 Construction 5.8% 6.2% 250,000 Manufacturing 12.4% 1.9% 200, ,000 Mining and Hydrocarbons 13.9% 4.6% 100,000 Fishing 0.4% -2.1% 50,000 Agriculture 5.2% 3.4% Source: BCRP 15

16 1 Exports by type of product Between , Peru registered compounded annual growth of +4.8% in exports 50,000 45,000 % of exports 17 CAGR ,000 Others 0.3% 1.3% 35,000 Non-Traditional (1) 26.0% 6.3% 30,000 25,000 Fuel and Derivatives 7.5% 3.8% 20,000 Mining 60.5% 4.5% 15,000 10,000 Agricultural 1.8% 5.9% 5,000 Fishing 4.0% 2.0% Non traditional includes: agriculture and livestock (11.4%), textile (2.8%), chemicals (3.1%), and others (8.7%). Source: BCRP 16

17 1 Exports by destination country Exports by destination country 2017* (% of Total Exports) Main destination countries % of exports China 23.0% Copper 16.9% Fish meal 1.9% Iron 0.9% Others 3.3% 5 2. USA 16.8% Gold 4.7% Fuels 0.9% Asparagus 0.7% Others 10.5% Switzerland 6.9% Gold 6.9% Canada 4.8% Gold 2.9% Others 1.8% South Korea 3.8% Copper 1.1% Others 2.7% China United States Eurozone LatAm Switzerland Canada South Korea Japan Others Source: SUNAT. *Jan-Nov 17

18 1 Mining exports Mining Exports Products 30,000 25,000 20,000 15,000 10,000 5, Molybdenum Zinc Lead Silver Gold Iron Tin Copper % of exports % 8.8% 6.3% 0.4% 29.4% 1.6% 1.4% 50.8% 100% CAGR % -0.7% 5.2% -14.1% 6.7% 4.1% -4.6% 6.7% Copper output (production in thousand metric tons, investment in USD millions) Projects on the horizon (P) Production Total Investment State Toquepala s Expansion Toromocho s Expansion 75 1,300 Mina Justa 110 1,250 Quellaveco 300 4,800 Michiquillay 187 1,900 Tía María 120 1,000 Total ( P) 3,362 10,800 In execution New projects Peru s Copper output (millions of metric tons) Source: BCRP, Ministry of Energy and Mining, BCP Economic Research 18

19 1 Macroeconomic outlook - Peru e 2018e GDP (US$ Millions) 168, , , , , , , ,175 Real GDP (% change) GDP per capita (US$) 5,929 6,620 6,639 6,501 6,168 6,205 6,686 7,055 Domestic demand (% change) Private Consumption (% change) Private Investment (% change) Gross fixed investment (as % GDP) Public Debt (as % GDP) System loan growth (% change) (1) Inflation (2) Reference Rate Exchange rate, end of period Exchange rate, (% change) -3.91% -5.56% -9.80% 6.43% 14.43% -1.47% -3.57% -1.23% Fiscal balance (% GDP) Trade balance (US$ Millions) 9,224 6, ,509-2,916 1,888 6,266 7,700 Exports 46,376 47,411 42,861 39,533 34,414 37,020 44,918 47,400 Imports 37,152 41,018 42,356 41,042 37,331 35,132 38,652 39,700 Current account balance (US$ Millions) -2,990-5,388-9,387-8,925-9,169-5,303-1,918-2,045 (As % GDP) Net international reserves (US$ Millions) 48,816 63,991 65,663 62,308 61,485 61,686 63,621 66,151 (As % GDP) 29% 34% 33% 31% 32% 32% 30% 29% Source: Estimates by BCP Economic Research as of February, 2018; INEI, BCRP, and SBS. Banking System, Current Exchange Rate. Inflation target: 2%, +/- 1%. 19

20 Macroeconomic Outlook Socio-demographic indicators

21 1 Peru offers the banking system significant growth potential Total Population (2016): 31.5 million [CAGR(1) 1.25%] Total Economically Active Population (2016): 17.3 million [CAGR(1) : 2.01%] Urban population by socioeconomic level (2016, % of total households) Urban: 24.3 Million Urban EAP (Employed and Unemployed): 13.2 Million CAGR(1) : 2.89% A + B: 14 % C: 33 % D: 35 % E: 17 % 23% Rural: 7.2 Million Rural EAP (Employed and Unemployed): 4.1 Million CAGR(1) : -0.28% Lima: Banked Population by socioeconomic level in 2015 (% of the population) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 16% 84% 33% 67% 47% 53% 64% 36% 73% 27% A B C D E (1) CAGR Figures using the available data. Sources: INEI, Apoyo Consultoría 21

22 1 Peru s average monthly family income has improved mainly in the low socio-economic segments Urban Peru: Socioeconomic levels by avg. household income Peru: Avg. household income evolution by segment (S/) A B S/.11,117 S/.6,529 Socioeconomic segment (USD) S/.4,036 S/.1,794 A 10,090 9,476 11,117 3,421 S/.7,081 S/.4,735 B 5,389 5,393 6,523 2,007 C 3,047 3,455 3,996 1,230 C D E D 1,683 2,196 2, S/.4,014 S/.2,543 S/.1,682 E 796 1,143 1, S/.897 S/.497 S/.225 S/.3,117 S/.2,045 S/.1,457 Average monthly family income Average monthly family available (1) Average monthly family expenditure Available income includes income for savings and/or loans expenditures. Source: INEI, Apoyo Consultoría 22

23 1 Demographic window will boost the economy while increasing middle class Labor force (% of population) Adults with post-secondary education (%) No Yes Growth of the middle class (% of households) Young adult (21-35 years) Adult (36-65 years) Upper class (A) Consolidated middle class (B) Emerging middle class (C) Emerging low class (D) Low class with limited resources (E) Source: ENAHO, Macro Research BCP, Apoyo Consultoría * Estimates.. 23

24 1 Peru has registered a significant reduction in its poverty rate in the last years Peru: Poverty evolution Lima: monthly average Income by segment (PEN) Extreme Poverty Non-Extreme Poverty Total Poverty 11,633 10,029 8,112 6,915 5,844 5,345 4,029 4,242 3,443 2,623 3,041 2,100 2,428 1,796 1, SES A SES B SES C SES D SES E Evolution of socioeconomic segments Urban Peru: monthly average spending by segment (PEN) 1% 1% 1% 8% 10% 10% 20% 29% 42% 23% 27% 31% 30% 35% 31% 7,081 6,700 5,185 4,735 3,876 4,261 3,117 2,832 2,453 2,045 1,606 1,819 1,091 1,275 1, SES A SES B SES C SES D SES E SES A SES B SES C SES D SES E Source: INEI, Apoyo Consultoría. 24

25 Macroeconomic Outlook Peruvian Financial System

26 1 Behavior of Loans and Deposits are in Line with Economy Asset Quality vs. Domestic Demand and Jobs (% change YoY) 17% 15% 13% 11% 9% 7% 5% 3% 1% -1% -3% Dic98 Dic00 Dic02 Dic04 Dic06 Dic08 Dic10 Dic12 Dic14 Dic16 Domestic Demand (% YoY) PDL Jobs (Peru Urban % YoY) Volumes in S/BN Deposits by Currency - mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 LC FC Volumes in US$BN Loans by Currency Dollarization (%) Volumes in S/BN Source: BCRP and SBS as of November Volumes in US$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 26

27 1 The Peruvian Banking 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 / Gross Loans (3) Profitability (%) (4) PERU MEXICO COLOMBIA CHILE BRASIL PERU MEXICO COLOMBIA CHILE BRASIL 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) Source: Asbanc as of June 30, Number of days to consider credits as expired variesbetween countries. (4) Source: Asbanc as of June 30,

28 BCP Overview

29 2 BCP has One of the Best Banking Platforms in Latin America Local Loan Market Share (%) (1) Total Gross Loans to Deposits Ratio (%) 31.2% 26.0% 22.7% 17.6% 16.4% 13.6% 90.9% 105.5% 122.5% 127.2% 134.0% 140.9% Bancolombia BBVA Bancomer Santander Chile Banco de Chile ITAU BBVA Bancomer ITAU Bancolombia Banco de Chile Santander Chile Efficiency (%) (2) ROAE (%) 39.80% 40.80% 43.33% 46.18% 46.30% 52.60% 19.20% 19.30% 20.75% 21.80% 23.40% 10.61% BBVA Bancomer Santander Chile Banco de Chile ITAU Bancolombia Bancolombia Santander Chile Banco de 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). 29

30 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 35% SME Loans 1 37% Microfinance Loans 1 29% Consumer Loans 1 18% Credit Cards 1 21% Mortgage Loans 1 31% Total Loans 1 31% 31% 19% 16% 8% Demand Deposits 1 32% Savings Deposits 1 35% Time Deposits 1 24% CTS Deposits 1 36% Total Deposits 1 30% BBVA Scotiabank Interbank #1 in Deposits (Market Share %) (1) Most Profitable Bank (ROAE %) 30% 18% 21% 19% 16% 20% 14% 10% BBVA Scotiabank Interbank BBVA Scotiabank Interbank Source: SBS as of November 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 FinancieraOh!. 30

31 2 BCP has a Convenient Distribution Network Branch Network National Coverage (1) BCP s Network has Expanded Steadily Total Branches BCP Stand Alone- Number of transactions Monthly average (Millions of transactions) % +6.0% 9,187 9,391 8,419 8,793 8,042 8, ,329 6,621 2,295 2, ,844 2,091 2,226 1,485 6,098 6,310 5,713 5,820 5,157 5,732 4, 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% 93% 30% 27% 24% 20% 16% 14% 11% 10% 9% 8% 7% Electronic channels Teller (1) Data considers BCP and Mibanco branches and excludes branches outside of Peru. Source: SBS as of December 31, *Includes Edyficar for the period ( ) Sources: BCP, SBS. 31

32 3 Solid Growth and Profitability Quarterly Highlights Profitability Net income (1) : S/ 742 million 9.6% QoQ and 2.5% YoY ROAE: 19.78% 333bps QoQ and 294bps YoY ROAA: 2.17% 30 bps QoQ and 20 bps YoY Loan portfolio Nominal growth: 6.2% QoQ and 5.6% YoY in quarter-end balances 3.0% QoQ and 2.7% YoY in average daily balances Provisions for loan losses: 31.3% QoQ and 3.4% YoY Cost of risk (1) : 1.93% 40 bps QoQ and 13 bps YoY NII & NIM Net interest income: S/ 1,834 million 2.6% QoQ and 1.1% YoY NIM: 5.59% 3 bps QoQ and 33 bps YoY NIM after provisions: 4.28% 31 bps QoQ and 19 bps YoY Efficiency Efficiency ratio (2) : 44.94% 237 bps QoQ and 137 bps YoY Capital CET1 ratio: 11.83% 10 bps QoQ and 75 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 fromderivative instrumentsfor the period. 32

33 3 Solid Growth and Profitability YTD Highlights Profitability Net income (1) : S/ 3,026 million 7.8% ROAE: 20.75% 95 bps ROAA: 2.27% 13 bps Loan portfolio Nominal growth: 5.6% in quarter-end balances 2.6% in average daily balances Provisions for loan losses: 1.6% Cost of risk (2) : 1.89% 8 bps NII & NIM Net interest income: S/ 7,124 million 2.1% NIM: 5.55% 1 bps NIM after provisions: 4.23% 7 bps Efficiency Efficiency ratio: 43.33% 23 bps Capital CET1 ratio: 11.83% 85 bps 1. Net income from continuing operations. Net income from discontinued operations was S/0, and S/141 MM as of December 2017, and December 2016, respectively. 2. Cost of risk = Annualized provisions for loan losses / Total loans. 33

34 3 Loan Portfolio Loan Portfolio Evolution - Q-end vs. Avg. Daily Balances (S/ Millions) 91,573 88,909 86,537 86,709 86,141 85,891 86,327 86,195 84,733 85,091 4Q16 1Q17 Q-end Total Loans (+1.3% QoQ) 2Q17 3Q17 Total Loans avg. Daily balances (+0.5% QoQ) 4Q17 Loan Portfolio Mix Avg. Daily Balances Loan by currency Avg. Daily Balances 47.8% 47.9% 47.4% 46.7% 46.7% 66.1% 65.0% 64.4% 64.4% 65.2% 41.6% 41.3% 41.6% 42.2% 42.2% 33.9% 35.0% 35.6% 35.6% 34.8% 9.7% 0.8% 10.0% 0.9% 10.1% 0.9% 10.2% 0.8% 10.2% 0.8% 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 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. 34

35 3 Loan Portfolio Growth Loan growth contribution QoQ (Average daily balances) Nominal growth +3.0% Real growth +3.3% 86,327 1,394 1, ,909 Total Loans 3Q17 BCP - Wholesale Banking BCP - Retail Banking Mibanco US Dollar appreciation Total Loans 4Q17 Loan Portfolio Mix Avg. Daily Balances Nominal growth +2.7% Real growth +4.0% 86,537 1,000 1, ,100 88,909 Total Loans 4Q16 BCP - Wholesale Banking BCP - Retail Banking Mibanco US Dollar appreciation Total Loans 4Q17 35

36 3 Loan portfolio by segment Loans by Business Segment(1) 4Q16 32% 16% 5% 9% 14% 8% 5% 10% 1% 3Q17 30% 17% 5% 10% 15% 8% 5% 10% 1% 4Q17 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. 4Q17 % nominal change % real change S/ Millions 4Q16 3Q17 4Q17 QoQ YoY QoQ YoY Wholesale Banking 41,352 40,331 41, % 3.0% 0.5% 3.5% 2.4% Corporate 27,622 25,899 26, % 3.4% -3.1% 3.8% -1.2% Middle - Market 13,730 14,432 14, % 2.4% 7.7% 2.8% 9.6% Retail Banking 36,019 36,433 37, % 3.0% 4.2% 3.2% 5.0% SME - Business 4,703 4,704 4, % 3.7% 3.7% 4.1% 5.7% SME - Pyme 7,827 8,240 8, % 5.1% 10.7% 5.2% 10.9% Mortgage 12,508 12,745 12, % 1.7% 3.6% 1.9% 4.5% Consumer 6,556 6,514 6, % 2.4% 1.8% 2.5% 2.4% Credit Card 4,425 4,230 4, % 3.3% -1.3% 3.4% -0.8% Mibanco (2) 8,432 8,840 9, % 2.7% 7.7% 2.7% 7.9% Others (3) % 1.0% -0.5% 1.2% 1.1% Total 86,537 86,327 88, % 3.0% 2.7% 3.3% 4.0% (1) Average daily balances. (2) Includes work out unit, and other banking. 36

37 3 Loan portfolio by currency Loan dollarization by segment YoY(1) 5.5% of total loans 14.6% of total loans 3% 5% 26% 24% 15% 17% 12% 13% 6% 6% 50% 54% 52% 54% 49.7% 46.3% 48.3% 46.4% 95.0% 96.5% 73.6% 76.1% 84.6% 83.2% 88.5% 86.8% 93.9% 94.3% 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 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 4Q16 3Q17 4Q17 QoQ YoY % Part. % Part. 4Q16 3Q17 4Q17 QoQ YoY 4Q17 4Q17 Wholesale Banking 20,571 18,014 19, % -6.4% 33.2% 6,155 6,869 6, % 11.8% 72.1% Corporate 13,722 11,118 12, % -12.4% 20.7% 4,117 4,550 4, % 10.6% 47.7% Middle - Market 6,849 6,896 7, % 5.6% 12.5% 2,038 2,319 2, % 14.3% 24.4% Retail Banking 28,378 28,895 29, % 5.1% 51.5% 2,263 2,322 2, % 5.2% 24.9% SME - Business 2,272 2,229 2, % -0.4% 3.9% % 12.1% 8.5% SME - Pyme 7,438 7,926 8, % 12.4% 14.4% % -18.3% 1.0% Mortgage 9,206 9,589 9, % 7.2% 17.0% % -2.4% 10.0% Consumer 5,548 5,469 5, % 0.0% 9.6% % 15.7% 3.6% Credit Card 3,914 3,682 3, % -3.1% 6.5% % 17.9% 1.9% Mibanco 7, % 8.2% 14.8% % 3.9% 1.7% Others (2) % 8.5% 0.6% % -3.2% 1.3% Total 57,172 55,573 57, % 1.4% 100.0% 8,697 9,467 9, % 9.8% 100.0% (1) Average daily balances. (2) Includes work out unit, and other banking. 37

38 3 Strong Efficiency Levels and Stable Margins Net interest income (S/ Millions) Efficiency (%) (2) +1.0% +2.0% 6,981 7, % +3% 42.6% 44.9% 43.6% -1% 43.3% +2.6% 1,815 1,788 1,834 9,565 9,786 2, , , ,584-2,662 4Q16 3Q17 Interest Income 4Q17 Dic-16 Interest Expense Dic-17 4Q16 3Q17 4Q17 Dic-16 Dic-17 Net Interest Margin P&L Breakdown - Variations Sep16 vs. Sep17 (PEN Bn) 5.9% 4.5% 8.4% 5.6% 4.6% 8.4% 8.2% 8.1% 5.6% 5.5% 4.3% 4.2% 5.5% 4.2% 7.9% 2, ,026 4Q16 3Q17 NIM 4Q17 NIM after provisions Dic-16 NIM on loans Dic-17 Net Income Dic-16 Fin. Income Fin.Expense Prov.of Losses Non Int. Income Oper. And Other Exp. & Tax Net Income Dic-17 Source: BCP consolidated figures as of December 31, (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 dividedby averageinterest-earningassets. 38

39 4 Strong Asset Quality and Ample Coverage Levels Cost of Risk & Provisions Coverage Ratios (%) (1) 2.05% 2.45% 1.96% 1.87% NPL Ratio % % % % % % % % % % 1.51% 3.83% 0.93% 4.13% 4.14% 4.41% 4.24% 0.99% 1.04% 1.21% 1.08% % 3.14% 3.10% 3.20% 3.16% 4Q16 1Q17 2Q17 3Q17 Cost of Risk Provisions Past Due Loans by Currency (%) USD PEN 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 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) PDL days overdue PDL 90 days overdue 3.49% 3.84% 3.81% 3.97% 3.94% % 1.87% 1.85% 1.77% 1.73% Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Source: BCP consolidated figures as of December 31, (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 December 31,

40 4 Cost of Risk by Segment 9.00% 7.00% 5.00% 3.00% 1.00% 9.56% 9.71% 9.00% 9.16% 9.18% 8.86% 8.54% 7.57% 8.13% 8.04% 8.10% 7.95% 7.93% 7.87% 7.70% 7.56% 7.28% 7.35% 7.02% 7.08% 7.06% 6.88% 7.10% 6.50% 6.50% 6.69% 6.24% 6.03% 6.02% 6.55% 6.37% 6.24% 5.71% 5.63% 5.93% 5.91% 5.79% 6.02% 5.86% 5.55% 4.97% 4.94% 5.48% 5.49% 5.54% 5.19% 4.59% 4.88% 4.83% 5.04% 4.13% 4.60% 3.77% 4.40% 4.27% 4.26% 3.93% 3.78% 3.58% 3.70% 3.71% 3.18% 3.37% 3.17% 3.35% 2.35% 4.31% 3.39% 1.71% 1.99% 1.50% 1.55% 1.44% 1.42% 0.98% 1.08% 1.09% 0.76% 0.95% 0.96% 0.96% 1.02% 0.64% 0.77% 0.94% 0.69% 0.58% 0.54% 0.53% 0.62% 0.80% 0.90% 1.28% 0.61% 0.50% 0.49% 0.57% 0.88% 0.22% 0.56% 0.87% 0.28% 0.37% 0.65% 0.62% 0.62% 0.21% 0.35% 0.43% 0.25% 0.41% -0.04% 0.21% 0.18% 0.21% 0.06% 0.13% -0.05% Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sept 17 Dec % Credit Card SME - PYME Mibanco Consumer SME - Business Mortgage Wholesale 40

41 4 Past Due Loans by Segment 14.00% 12.00% 10.29% 10.73% 10.57% 10.61% 11.54% 12.00% 11.91% 11.10% 12.43% 12.91% 12.70% 12.41% 13.14% 12.40% 12.44% 12.61% 10.00% 9.19% 8.00% 6.00% 4.00% 2.00% 0.00% 6.50% 5.76% 5.91% 6.00% 5.68% 5.79% 5.58% 5.61% 5.42% 5.55% 5.21% 5.29% 5.01% 5.45% 5.04% 4.88% 4.96% 4.86% 5.01% 5.02% 4.65% 4.99% 4.89% 4.79% 4.59% 4.73% 4.33% 4.74% 4.24% 4.38% 4.49% 4.56% 4.66% 4.68% 4.09% 4.76% 4.68% 4.67% 4.60% 4.51% 4.59% 4.59% 4.39% 4.32% 4.26% 4.12% 4.12% 3.93% 4.17% 2.96% 3.07% 3.01% 3.14% 2.17% 2.21% 2.42% 2.38% 2.35% 2.16% 2.44% 2.42% 2.62% 2.71% 3.02% 2.93% 2.98% 2.92% 2.96% 2.93% 2.89% 2.65% 2.66% 1.57% 1.61% 1.38% 1.48% 1.73% 1.79% 1.88% 1.92% 2.10% 2.30% 2.40% 0.25% 0.32% 0.35% 0.32% 0.32% 0.26% 0.28% 0.27% 0.32% 0.28% 0.33% 0.28% 0.29% 0.31% 0.43% 0.48% 0.47% Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sept 17 Dec 17 SME - Pyme Credit Card Mibanco SME - Business Mortgage Consumer Wholesale 41

42 4 Portfolio quality and Cost of risk SME - Pyme 0.57% S/ Billions % 16.08% 15.89% 15.06% 16.15% 16.37% 16.08% 15.84% 16.67% 16.22% 16.09% 15.73% % 12.22% 12.93% 12.86% 9.19% 10.29% 10.73% 10.57% 10.61% 11.54% 12.00% 11.91% 12.43% 12.91% 12.70% 12.41% 13.14% % 12.44% 12.61% 11.00% 11.10% % 7.57% 8.13% 6.69% 6.50% 6.88% 6.24% 6.03% 6.02% 6.24% 5.55% 5.71% % 4.94% 4.13% 4.59% 3.77% % 3.18% 3.36% 2.88% 2.76% 2.72% 3.01% 2.79% 2.33% 2.75% 2.91% 2.76% 2.19% 2.22% % 1.80% 2.13% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) SME - Business S/ Billions % % 6.31% 5.88% 5.11% 5.30% 5.91% 6.01% 6.00% 6.07% 5.66% 5.99% 5.76% 5.56% % 5.06% 4.78% 5.55% 5.79% % 4.38% 4.88% 4.96% 5.21% 5.29% 5.01% 5.01% 4.89% 4.73% 4.49% 4.59% % 4.24% 4.09% 1.99% 2.35% % 1.50% 1.55% 1.44% 0.98% 1.08% 1.09% 0.96% 1.02% 0.94% % 0.77% 0.69% 1.42% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) (1) Cost of risk = Annualized provisions for loan losses / Total loans. 42

43 4 Portfolio quality and Cost of risk Consumer S/ Billions % 6.55% % 5.79% 6.02% 5.48% 5.91% 5.60% 5.86% % 5.55% 5.54% 5.84% % 4.94% 5.05% 5.12% 5.12% % 2.21% 2.42% 2.38% 2.35% 2.16% 2.44% 2.42% 2.62% % 6.50% 5.97% 6.03% 6.13% 6.40% 6.69% 6.22% 5.82% 5.95% 4.83% 5.19% 4.26% 3.70% 3.71% 3.39% 2.71% 2.96% 3.07% 3.02% 2.93% 2.92% 2.98% 2.93% % 1.91% 2.21% 1.97% 1.88% 1.73% 1.95% 1.90% 1.97% 2.10% 2.31% 2.06% 1.82% 1.63% 1.66% 1.64% 1.44% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) Credit Card S/ Billions % % 9.56% 9.16% 7.70% 6.62% 6.77% 7.06% 7.28% 8.54% 9.18% 8.86% 8.10% 7.95% 7.93% % 7.56% 7.87% % 5.81% 6.06% 5.90% 5.90% 6.35% 6.05% 6.08% 5.75% 5.78% % 4.87% 4.96% 4.85% 5.10% % 5.91% 5.45% 5.04% 4.86% 5.02% 4.74% 4.65% 4.99% % 4.12% 4.12% 3.93% 4.17% 4.32% 4.60% 4.79% % 3.54% 3.14% 2.69% 2.86% 3.00% % 2.33% 2.44% 2.62% 2.62% 2.56% 2.68% 2.24% 2.44% 2.34% 2.92% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 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. 43

44 4 Portfolio quality and Cost of risk Mortgage S/ Billions % 2.81% 3.05% 3.18% 3.18% 3.36% % 3.01% 2.96% 3.14% 2.65% 2.66% 2.10% 2.30% 2.40% 1.49% 1.60% 1.69% 1.73% 1.90% 1.97% 2.04% 2.10% 2.29% 2.48% 2.57% % 1.38% 1.48% 1.79% 1.88% 1.92% 1.57% 1.61% 0.79% 0.80% 0.62% 0.69% 0.68% 0.67% 0.78% 0.81% 0.82% 1.02% 1.03% 1.16% 0.91% 0.97% % 0.88% 0.87% 0.58% 0.76% 0.95% 0.88% 0.96% 0.80% 0.90% 0.50% 0.49% % 0.22% 0.87% 0.54% 0.53% 0.62% 0.61% 0.56% 0.0 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 S/ Billions % % % Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150) Wholesale 0.62% 0.65% 0.62% 0.60% 0.63% 0.35% 0.36% 0.42% 0.52% 0.43% 0.32% 0.33% 0.35% 0.34% 0.42% 0.44% 0.53% 0.37% 0.51% 0.41% 0.48% 0.32% 0.27% 0.28% 0.29% 0.31% 0.37% 0.28% 0.28% 0.35% 0.32% 0.32% 0.33% 0.25% 0.26% 0.28% 0.21% 0.21% 0.18% -0.04% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q % Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) 1.28% 0.74% 0.48% 0.06% 0.66% 0.47% 0.13% (1) Cost of risk = Annualized provisions for loan losses / Total loans. 44

45 4 Portfolio quality and Cost of risk Mibanco S/ Billions % 5.11% 3.58% 6.96% 5.58% 5.49% 7.08% 6.76% 5.68% 7.38% 6.75% 7.00% 6.50% 6.00% 5.61% 5.63% 4.60% 4.88% 4.60% 6.39% 5.42% 3.93% 5.81% 5.74% 5.74% 5.61% 5.56% 5.75% 5.85% 5.99% 6.13% 4.76% 5.04% 4.68% 4.67% 4.51% 4.39% 4.59% 4.56% 4.66% 4.68% 4.27% 4.40% 4.31% 3.74% 3.78% 3.18% 3.37% 3.35% 3.43% 3.17% Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 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. 45

46 4 Solid and Diversified Balance Sheet Asset Structure (S/ Billions) Liability & Equity Structure (S/ Billions) Gross Loans Cash & Due from banks Investments Reserve for loan losses Other assets (1) Deposits and Obligations Due to banks Bonds and subordinated notes issued Other liabilities (2) Equity % 64.4% 65.6% 58.3% 61.0% 61.3% 19.9% 11.2% -3.2% 4.1% 19.0% 15.9% 3.9% -3.2% 20.7% 13.1% -3.1% 3.7% 11.4% 6.5% 12.9% 10.8% 4Q % 7.0% 10.4% 10.9% 3Q % 5.9% 10.7% 11.0% 4Q17 Foreign Currency 4Q % 3Q17 4Q % 47.9% 48.7% 47.8% 47.8% Loan / Deposit Ratio BCP Stand Alone - Total Commercial Loans by Sector (%) 149.0% 116.7% 83.1% 136.2% 108.2% 78.6% 132.4% 106.1% 78.5% 127.8% 105.5% 79.9% 136.1% 107.1% 76.7% 9% 5% 1% 7% 1% 8% 14% 14% Manufacturing Commerce Consumer Finance services Communication, Storage and Transportation Construction Leasholds and Real Estate Activities 4Q16 1Q17 2Q17 Loans/Deposits ratio in PEN Loans/Deposits ratio in USD 3Q17 4Q17 Total Loans/Deposits ratio 5% 6% 7% 23% Agriculture Mining Electricity, Gas and Water Fishing Others (3) 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. 46

47 4 Stable and Diversified Funding Base Evolution of Funding Structure & Cost Funding Structure by currency 2.10% 2.12% 2.10% 2.12% 2.04% 8% 10% 14% 9% 9% 14% 9% 8% 14% 9% 7% 14% 8% 8% 14% Local Currency 8% 7% 16% Foreign Currency 21% 8% 68% 68% 69% 70% 69% 68% 71% 4Q16 1Q17 2Q17 3Q17 4Q17 Due to banks and correspondents (2) Bonds and subordinated debt BCRP Instruments Depósits Funding cost (1) Funding Structure by tenure (original term) Bonds and subordinated debt BCRP Instruments Due to banks and correspondents (2) Deposits Funding Structure by tenure (months to maturity) 38% 43% 36% 17% 11% 18% 13% 8% 3% 3% 5% 5% 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 47

48 4 BCP Stand-Alone - Sound Deposits Base Total Deposits Breakdown(1) (S/ Millions) Deposit Dollarization(1) % % % % % 22% 22% 24% 23% 23% 48.3% 48.3% 47.8% 49.0% 50.2% 32% 33% 32% 33% 32% 36% 36% 34% 35% 36% 51.7% 51.7% 52.2% 51.0% 49.8% 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Severance Indemnity Deposits (CTS) Time Deposits (3) Savings Deposits Demand Deposits PEN USD Deposits Implicit Rate Deposits Consolidated Evolution and Participation(2) 1.71% 1.66% 1.64% 1.56% 1.56% S/. Millions 4Q16 3Q17 4Q17 QoQ YoY 0.99% 0.99% 1.02% 0.98% 1.05% BCP Peru 67,905 74,692 78, % 14.99% Mibanco 6,452 7,021 7, % 16.01% 0.33% 0.37% 0.45% 0.42% 0.53% Eliminaciones % % BCP Consolidated 74,325 81,676 85, % 15.04% Mibanco 4Q16 1Q17 2Q17 3Q17 4Q17 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). 48

49 4 BCP Stand-Alone - Deposits by business segment (1) Total Deposits Savings Deposits 16% 21% 19% 5% 0% 1% 0% 3% 0% 21% 20% 21% 95% 98% 97% 63% 59% 61% PEN USD Total PEN USD Total Corporate Middle-market Retail Corporate Middle-market Retail Time Deposits Demand Deposits 32% 38% 35% 28% 31% 29% 41% 37% 39% 32% 28% 30% 27% 25% 26% 40% 41% 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. 49

50 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 1,543, % Subordinated (3) 24/04/ /04/22 (1) 15 (1) USD 720,000 2,333, % Corporate 16/09/ /09/ USD 800,000 2,592, % Corporate (5) 01/04/ /04/ USD 716,301 2,321, % Corporate 09/07/ /01/ USD 230, , % Corporate 25/10/ /10/ USD 300, , % Corporate 31/10/ /10/ PEN 2,000,000 2,000, % Total 13,329,029 (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. 50

51 5 Disciplined and Conservative Capital Management BCP at Basel II BCP at Basel III 15.35% 16.73% 16.71% 16.35% 15.05% 11.08% 10.92% 11.54% 11.93% 11.83% 10.41% 11.76% 11.75% 11.47% 10.84% 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Tier 1 ratio (3) BIS ratio (2) Common Equity Tier 1 ratio (4) Common Equity Tier 1 ratio December 2017 Common Equity Tier 1 ratio September % 0.06% 10.91% 3.03% -0.72% -1.47% 11.83% 11.55% 2.48% -0.72% -1.44% 11.93% Capital and reserves Retained earnings Unrealized gains (losses) Goodwill and intangibles Investments in subsidiaries CET1 (4Q17) Capital and reserves Retained earnings Unrealized gains (losses) Goodwill and intangibles Investments in subsidiaries CET1 (3Q17) (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. 51

52 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. 52

53 6 Strong Governance Focus Governance structure Board independence General Shareholder s Meeting Board of Directors Chairman Dionisio Romero Paoletti 5 7 Independent Dependent Vice - Chairman Raimundo Morales Dasso* Directors Board of directors tenure Roque Benavides Ganoza* Barbara Bruce Ventura* Benedicto Cigueñas Guevara* Fernando Fort Marie Martin Perez Monteverde (Deputy) Eduardo Hochschild Beeck* Luis Montero Aramburu* Juan Carlos Verme Giannoni* Patricia Lizárraga Guthertz* Luis Enrique Romero Belismelis 10+ years 5-10 years Board Committees Independent internal and external audit 0-5 years * Independent directors. 53

54 Appendix

55 BCP Stand-Alone - Ratings Local Credit Rating Agencies International Credit Rating Agencies Bank AAI Equilibrium Date of last review jun-17 jun-17 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 2026 BBB BBB Baa3 Subordinated BCP 2027 BBB BBB Baa3 Junior Subordinated 2069 BB- BB+ Senior BCP 2019 (US$ 300MM) BBB+ BBB+ Baa1 Senior BCP 2020 (US$ 800MM) BBB+ BBB+ Baa1 Senior BCP 2023 (US$ 716MM) BBB+ BBB+ Baa1 Senior BCP 2020 (S/ 2000MM) BBB+ BBB+ Baa1 (1) Date is updated when there is a change in the outlook or rating. 55

56 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 December 31,

57 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 December 31,

58 Selected Financial Information Income Statement Summary (PEN in millions) 4Q16 3Q17 4Q17 Dic-16 Dic-17 YoY Growth Financial income 2,481 2,447 2,507 9,565 9, % Financial expense ,584-2, % Gross financial margin 1,815 1,788 1,834 6,981 7, % Provision for loan losses ,726-1, % Gross financial margin after provision for loan losses 1,372 1,462 1,406 5,255 5, % Gain (loss) for exchange difference % Net financial margin 1,372 1,464 1,412 5,226 5, % Fees and commissions from banking services ,204 2, % Net results from derivatives % Net gains (loss) from sales of securities % Net gains on foreign exchange transactions % Other income % Operating expenses -1,176-1,117-1,226-4,447-4, % Income before workers profit sharing and income tax 987 1,138 1,035 3,794 4, % Income tax , % Net income from continuing operations ,806 3, % Net income from discontinuing operations % Net income ,947 3, % Source: BCP consolidated figuresas of December 31, Peru GAAP unaudited. 58