Credicorp : 1Q25 Conference Call BAP

Published: 2025-05-16 09:44:15 ET BAP

Published on 05/16/2025 at 09:44

May 2025

Remarkable Start to the Year in A Strengthening Economic Environment

Solid Operating Results Further Boosted by Diversified Income

ROE

20.3%1

Innovation Portfolio Risk-adj. Revenue Share2

5.4%

Resilient Margins, Supported by Low-Cost Funding

Risk Adj. NIM

5.24%

+16 bps vs 4Q24

MS of Low-Cost Deposits3

41.3%

Strong Solvency Permits an Increase in Dividend Distribution

BCP CET1 - Mar 24

11.62%

Dividend / Share

S/40.0

Disruption Investments Strengthen Competitive Moats and Sustainability

1Q25 Efficiency Ratio

45.7%

Financially Included4

6.0 million people

Net Positive Local Impact from Macro Dynamics

GDP E255

Around 3%

Ref. Rate - May 25

4.50%

(1) Excluding Empresas Banmédicaʼs extraordinary income, ROE stood around 18.4%. (2) As a percentage of Credicorpʼs total Risk-Adjusted Revenue. (3) Includes BCP Stand-alone and Mibanco. Data as of Mar 25. (4) Number of financially included clients through BCP since 2020: (i) New clients with savings accounts or affiliated to Yape. (ii) New clients without debt in the financial system or BCP products in the last twelve months. (iii) Clients with three monthly average transactions in the last three months. (5) BCP Estimate.

1Q25 Earnings Conference Call

Peru Remains Relatively Well Positioned Amid Global Uncertainty and Trade Tensions

2025 Expected Economic Growth

(YoY % change)1

4.6%

4.0%

2.7%

1.8%

1.0%

0.8%

Jan Apr

Jan

China

Apr

Jan

Eurozone

Apr

Share of exports by destination 2024

China

USA

Europe

Other

(%)2

Commodity prices

(% change since 1Q25 peak, as of May 12)3

Peru

Chile

Colombia

(1) Source: IMF (2) Source: BCCH, DANE and INEI. (3) Bloomberg.

Gold 4

-5

Copper

WTI oil -13

1Q25 Earnings Conference Call

1Q25 Key Financial Highlights

Loan Portfolio Expanded

While Asset Quality Improved

Total Loans1

+1.5%

YoY

NPL Ratio

5.1%

-112bps YoY

CoR

1.6%

-66bps YoY

Resilient NIM on Funding Tailwinds

NII

+4.3%

YoY

Low-Cost Deposits2

59.0% of Funding Base

+534bps YoY

NIM

6.2%

-8bps YoY

Growing Diversified Sources of Income

Fee Income

+16.0%

YoY

Gains on FX Transactions

+12.6%

YoY

Ins. Underwriting Results

+17.9%

YoY

Diversified Business

and Solid Capital Base

Earnings Contributions3

80.3% Universal Banking 11.1% Insurance & Pensions 5.3% Microfinance

3.4% Investment

Management & Advisory

CET14

11.62%

-24bps YoY

15.89%

-18bps YoY

(1) Measured in average daily balances. (2) Includes demand deposits and saving deposits. (3) % Earnings Contribution based on the total of our 8 main subsidiaries: BCP, BCP Bolivia, Mibanco, Mibanco Colombia, Pacifico Seguros, Prima AFP, Credicorp Capital and ASB Bank Corp. (4) CET1 Ratio calculated under IFRS accounting.

Peruʼs GDP Grew ~4% Y/Y in 1Q25, Marking the Third Consecutive Quarter of Expansion at This Pace

GDP

(YoY % change)1

High-Frequency Economic Indicators 1Q25

(YoY % change)2

20 21

5.0

3.0

3.9

Private formal employment

Domestic VAT revenue

Real wage bill

Buying and selling of real estate

Car sales Capital goods imports

Industrial supplies imports*

1.0

-1.0

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

-3.0

3-Month Investment Expectations

(points, period average, pessimistic < 50 < optimistic)3

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

Apr-25

(1) Source: INEI. Estimate. (2) Source: INEI, Sunarp, Sunat, BCRP. (3) Source: BCRP.

Central Banks in Wait-and-See Mode While Assessing Tariffs Impacts

Inflation CPI Rates

(YoY % change)1

Central Bank Policy Rates

(%, as of February 10)1, 2

9.25

Dec20

Jun21

Dec21

Jun22

Dec22

Jun23

Dec23 Jun24

Dec24

Apr25

5.2

4.5

2.3

1.7

Dec20

Jun21

Dec21

Jun22

Dec22

Jun23

Dec23 Jun24

Dec24

5.00

4.50

May25

(1) Source: Bloomberg. (2) Source: Reference Rates for PE,CO and CL; Fed Funds Upper Bound Rate for the U.S.

Universal Banking: Strong Profitability Driven by Asset Quality Improvements and Diversified Sources of Revenue

24.7%

20.1%

27.1%

1Q24 4Q24 1Q25

Risk-Adjusted NIM and Cost of Risk

(%)

4.6%

2.1%

4.9%

1.3%

1.8%

5.0%

Risk-adjusted NIM

Cost of Risk

115,412

117,601

118,771

Loans2 S/ Million

1Q24 4Q24 1Q25

1Q24

4Q24 1Q25

Other Core Income3, 4 / Average Total Assets

6.0%

5.8%

(%)

NIM

2.31%

2.30%

2.31%

35.1%

43.7%

37.7%

Efficiency Ratio3

2.12%

1Q24

2.22%

2Q24

3Q24

4Q24

1Q25

(1) Earnings contribution / Equity contribution. (2) Measured in average daily balances. (3) Beginning in 1Q25, these figures have been impacted by reclassifications between income and expenses accounts. For comparability purposes the metrics have been restated. For further detail please refer to our Earnings Release. (4) Includes Fee Income and Gains on FX Transactions.

Yape¹: With +14 Million MAU, Yape Generated 4.8% of Credicorpʼs Risk-Adjusted Revenues in 1Q25

Active Users and Engagement

36.0

51.0

52.1

Financial Results²

Monthly Revenues/MAU Monthly Expenditures/MAU

4.6

6.1 6.2

5.0

11.5

13.7 14.3

3.9

3.4

3.9

4.2

4.7

Mar24 Jun24 Sep24 Dec24 Mar25

2.20

2.55

2.62

Mar24 Jun24 Sep24 Dec24 Mar25

Payments

TPV (bn)

1Q24 4Q24 1Q25

Lending

Yaperos w/ Loans (mm)

1Q24 4Q24 1Q25

51%

55%

56%

0.6

1.6

2.4

Yapeʼs Revenue Share

11%

13%

(1) Management Figures. (2) Beginning in 1Q25, reclassifications and new accounting assignments have been incorporated. Figures for prior periods have been restated for comparability and may differ from those previously reported. For further details please refer to the Yape section in our Earnings Release.

Microfinance: Mibanco Peru Sustained Mid-Teens Profitability Reflecting Enhanced Risk Management and Resumed Loan Growth

13.2%

17.3%

14.7%

1Q24 4Q24 1Q25

Historical NPL Ratio

(%)

NPL Ratio

8.1%

7.4%

13,244

12,057

12,147

1Q24 4Q24 1Q25

13.4%

14.2%

13.9%

Loans2 S/ Million

Cost of Risfi

Risfi-Adjust NIM

6.1%

4Q22

5.5%

8.1%

6.4%

2Q24 4Q24 1Q25

7.5%

4.7%

5.1%

7.7%

10.7%

10.1%

NIM

53.3%

52.2%

52.9%

Efficiency Ratio

Experience s Efficiency

Consolidating the Hybrid Model3

Amount disbursed w/centralized assessment4

70%

26%

(1) Earnings contribution / Equity contribution. (2) Measured in average daily balances. (3) Figures as of March 2025. (4) Amount disbursed with centralized assessment / total disbursement amount.

(5)

Grupo Pacifico: Insurance Underwriting Results Remained Strong, While Profitability Continues to be Impacted by Credit Down Downgrades at the Investment Portfolio

-2.6%

+14.4%

28.9%

20.5%

19.3%

1Q24 4Q24 1Q25

Grupo Pacificoʼs Insurance Service Results

(S/ millions, %)

(% change)

Insurance Underwriting Results

Net Interest Income²

QoQ

YoY

66.2%

67.0%

58.5%

823,283

867,379

847,914

+33.7%

+2.3%

Insurance Service Expenses (as a %

Experience, Efficiency s Growth

of Insurance Service Income)

Strengthened digital channels

722K

(+36% YoY)

Digital Policies3 (

1Q24

4Q24

1Q25

(1) Earnings contribution / Equity contribution. For 1Q25, the figure reflects the full consolidation of Empresas Banmedica, including the capital paid for the acquisition, effective since March 2025. (2) Includes Interest Income and Interest Expenses. (3) Refers to the number of insurance policies issued through digital channels during 1Q25.

IM s A: Favorable Business Dynamics Underpinned by Sound Asset Management Fees And Low Seasonal Expenses

ROE1 and Income by Business2

18,598

20,021

+7.6%

(%, S/ millions)

16.3% 17.9% 13.7% 14.8% 18.6% 15.9% 16.9%4

7.8% 10.9%4

(in US$ millions)

WM AUMs2

Mar24

Mar25 Variation

Quarterly ROE

AM AUMs2

1Q23 2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24 1Q25

21,207

25,381

+19.7%

Strategy Execution

(1) (Net income from Credicorp Capital, ASB Bank Corp, and BCPʼs Private Banking) / (Net equity from Credicorp Capital, ASB Bank Corp., and Economic Capital assigned to BCPʼs Private Banking). (2) Internal Management figures. (3) Others include Trust and Security Services and Treasury. Since 1Q24 Others include Corporate Finance. (4) These figures exclude the impact of 4Q24 one-off charges in Net income and Net Equity. Including these charges, ROE for the 1Q25 stood at 18.4%

Mixed Balance Sheet Dynamics in an Environment Marked by Falling Interest Rates

Assets: Lower-yield Asset Mix and Decreasing Rates Negatively Impacted Yield on IEA

Liabilities: Decreasing Rates Coupled with Lower-Cost Funding Structure Pushed Down Cost of Funding

Interest Earning Asset (IEA) Structure

(S/ millions, %)

Funding Structure

(S/ millions, %)

226,014

240,711 236,159¹

184,574 198,926 193,069¹

1Q24

4Q24

1Q25

14.5%

17.1%

16.7%

23.5%

1.4%

27.0%

26.9%

25.5%

34.0%

32.8%

32.0%

1.7%

1.3%

22.4%

23.3%

+ Other Loans3

1Q24

4Q24

1Q25

5.1%

4.6%

5.3%

5.6%

7.5%

26.0%

24.9%

22.6%

53.7%

56.5%

59.0%

8.7%

9.5%

5.4%

5.8%

and correspondents

8.75%

8.44%

8.21%

2.98%

2.56%

2.42%

Yield on IEA Funding Cost

(1) Excluding the impact of BCP Boliviaʼs balance sheet revaluation, IEA stood at S/ 240,385 million and Funding stood at S/ 197,948. (2) Includes Cash and due from banks; Interbank funds; and Cash collateral, reverse repos and securities borrowing. (3) Other Loans includes BCP Bolivia loans. (4) Includes Repurchase agreements and BCRP instruments. (5) Includes Time deposits, Severance indemnity deposits and Interest payable. (6) Includes Demand deposits and Savings deposits.

Asset Quality Improved Materially YoY Via Strengthened Payment Performance Amid Economic Recovery

NPL YoY Contraction Across Segments

Economic Reactivation and Strengthened Risk Management Drove Provisions Down

Total NPLs1

(S/ millions)

Total Provisions

(S/ millions)

727

815

743

582

8,763

7,911

7,663

7,208

Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25

93.5%

104.3% 107.4%

1Q23 2Q23 3Q23 4Q23³ 1Q24³ 2Q24 3Q24 4Q24 1Q25

100.1%

Coverage Ratio

Cost of Risfi

1.6%

6.5%

2.0%

1.8%

4.7%

2.1%

1.3%

5.1%

1.6%

2.1%

4.6%

2.3%

BCP

Mibanco Credicorp

(1) Figures in quarter-end balances. (2) Includes Mibanco Colombia, ASB Bank Corp., and Others (3) Includes the impact of provisions for "El Niño" Phenomenon set aside in 4Q23 and subsequently reversed in 1Q24.

Diversified Revenue Streams Boosted Core Income, While Expenses Ticked up as Anticipated

+15.1%

YoY

Disruption

Fees

OPEX - Disruption

Net Interest Income

3,426

3,572

1Q24

1Q25

1Q24

4Q24

1Q25

Efficiency ratio2

(%)

NIM

Risfi-Adj NIM

(S/ millions)

6.34%

5.08%

6.22%

5.24%

+291pbs

42.8% 45.7%

3,630

973

2,113

2,442

256

1,857

(S/ millions)

6.30%

4.85%

+15.6%

+7.0%

YoY

Other Core Income1, 2

Transactions

4,588

4,988

4,910

305

857

385

344

994

]

+15.3%

Double-Digit YoY Other Core Income Growth; Reached Record High Risk-Adjusted NIM

Operating Expenses Increased YoY Driven by Core Business at BCP and Innovation Portfolio Initiatives

Core Income Accumulated Operating Expenses

301

2,141

1Q24 1Q25

(1) Other Core Income includes Fee Income and Gains on FX Transactions. (2) Beginning in 1Q25, reclassifications have been incorporated in Other income and Expenses. Figures for prior periods have been restated for comparability purposes and may differ from those previously reported. For further details please refer to our Earnings Release.

Delivered Robust 1Q25 Profitability, Mainly Supported by BCP and Pacifico

Net Income and ROE

(S/ millions, %)

Annual Results¹

18.4%

First Quarter Results

20.3%

18.2%

ROE Excluding Extraordinary Income²

1,778

1,512

17.0%

16.8%

13.9%

15.8%

16.5%

5,501

4,866

4,265

4,648

1.4%

3,585

347

2019

2020

2021

ROE

2022 2023 2024

1Q24 1Q25

(1) 2022 and 2023 figures are expressed in IFRS 17. (2) Excludes the extraordinary income related to the acquisition of the remaining 50% stake in the joint venture with Empresas Banmedica.

Maintain Our 2025 Guidance

1Q25 Results Guidance 2025

around 3.0%

+4.0%

Real GDP Growth

Total Loan

Portfolio Growth1

+0.8%

around 3.5%

Net Interest Margin (NIM)

6.2%

6.2% - 6.5%

Cost of Risk

1.6%

2.0% - 2.4%

Risk-Adjusted NIM

5.2%

4.8% - 5.0%

Efficiency Ratio

45.7%

45.0% - 47.0%

ROE

20.3%2

around 17.5%

(1) Measured in average daily balances. (2) Excluding extraordinary income related to the acquisition of the remaining 50% stake in the joint venture with Empresas Banmedica, ROE stood at 18.4%

Robust 1Q25 with 20.3%

ROE (18.4% excluding extraordinary income), reflecting strengthened risk management, margin resilience and income diversification amid a dynamic macroeconomic backdrop.

Our innovation portfolio contributed 5.4% of

risk-adjusted revenues, on track to reach our 2026 goal of 10% while advancing financial inclusion and value creation.

Updated 2025-2030 Sustainability Framework deepens commitment to financial and health inclusion, sustainable finance, resilience and trust.

Peruʼs recovery is gaining momentum, and Credicorp is well-positioned to lead with a diversified portfolio, strong capital base, and clear strategic direction.

1Q25 Earnings Conference Call 18

May 2025

Disclaimer

Credicorp Ltd. published this content on May 16, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 16, 2025 at 13:43 UTC.