Banco de Credito del Peru SA · BVL:CREDITC1
Banco de Credito del Peru SA — Debt Investor Presentation (November 2023)
31 slides from Banco de Credito del Peru SA's debt investor presentation, November 2023
Slide 1: Fixed Income Presentation
Fixed Income Presentation First Quarter 2022
Slide 2: Disclaimer
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 representatio
Slide 3: Macro and Market Backdrop
Macro and Market Backdrop
Slide 4: Slower global growth but high copper prices
Slower global growth but high copper prices World GDP - IMF China GDP - IMF (% change) (1) (% change) (1) 8.0 16.0 6.3 14.0 6.0 12.0 Avg. 2010-2019 3.7 3.5 4.0 3.2 3.2 10.0 7.7% 3.0 2.9 8.0 Avg. 2022-2026 2.0 6.0 4.0% 0.0 4.0 2.0 -2.0 0.0 -2.8 2020 2022 2002 2025 2026 2021 2023 2024 2003 2004 2005 2
Slide 5: Peru's economy has been affected by several shocks
Peru’s economy has been affected by several shocks Real GDP by demand components Real GDP by sectors YTD till 3Q23 (contribution to GDP and GDP in % change YoY) (1) (% change YoY) (2) 6.0 Share (%) Non-primary sectors Primary sectors 4.0 3.9 Private consumption 1.9 Electricity 3.4 4.6 11.3 Mining an
Slide 6: Uncertain outlook for 2024 due to "El Niño"
Uncertain outlook for 2024 due to “El Niño” NOAA: Sea surface temperature anomaly in the ENFEN Probability of occurrence “El Niño” in Peru Northern Coast, North-Centre Coast of Peru (change. ºC)1 summer 2024 (pp)3 5 1981-1983 Weak Moderate Strong 1996-1998 4 2022-2024 No Niño Extraordinary 60 2015-2
Slide 7: CB begin cutting rates amid lower inflation and weak economy
CB begin cutting rates amid lower inflation and weak economy Inflation Rate Central Bank Monetary Policy Rate (% YoY, as of September 2023) (1) (%, as of October 2023) (2) 15.0 7.75 Headline CPI 7.25 12.0 PPI 9.0 6.0 5.6 3.0 2.25 0.0 -0.2 0.25 -3.0 Jan20 May18 Sep20 Jan22 Jan23 May19 Sep22 Sep23 May
Slide 8: Peru's economy is expected to remain amongst the most dynamic in the region
Peru’s economy is expected to remain amongst the most dynamic in the region GDP Growth forecasts 2024-2027 Inflation forecasts 2024-2027 (% change, average) (1) (% change, average) (1) 2.8 2.7 5.5 2.6 2.6 2.4 2.2 2.2 1.9 3.8 3.7 3.7 3.6 3.1 2.7 2.2 Uruguay Mexico Brazil Bolivia Ecuador Chile Colombi
Slide 9: Peru has very strong macroeconomic buffers to cope with risks
Peru has very strong macroeconomic buffers to cope with risks Moderate Public Debt Strong Net International Reserves Public debt 2022 International Reserves 2022 (% of GDP) (1) (% of GDP) (1) 90 83 83 35 80 29 30 70 61 61 25 60 50 20 17 17 38 39 14 40 34 33 15 13 30 10 20 4 5 10 0 0 Chile Colombia P
Slide 10: BCP Overview
BCP Overview Some of the accounting practices used by BCP are aligned with Peruvian GAAP and as such, may, in certain aspects, significantly differ from generally accepted accounting principles in other countries (including IFRS, which is the accounting standard used to prepare Credicorp’s consolida
Slide 11: Undisputable Leader in the Peruvian Financial System
Undisputable Leader in the Peruvian Financial System #1 in Direct Loans(2) Financial Highlights Market Share (%) Others (PEN Billion) 2012 2022 12.9% Interbank 33.3% #1 13.4% Gross Loans 51.1 138.4 2x 15.6% Scotiabank 3.8% Total Assets 90.4 198.0 2x 20.9% BBVA Total Deposits 58.1 133.6 3x #1 in Depo
Slide 12: Balance Sheet Snapshot
Balance Sheet Snapshot Total Assets (S/ million, %) Cash and due from banks GP Loans (1) Others Investments Structural Loans Dollarization: 42.2% 198,028 191,667 192,597 190,877 188,306 17.3% 16.9% 15.7% 16.6% 16.3% 13.2% 12.9% 14.0% 14.1% 15.5% 6.4% 4.7% 3.4% 2.5% 2.0% 59.4% 62.3% 61.5% 62.4% 62.4%
Slide 13: Loan Portfolio
Loan Portfolio Evolution (S/ million, %) Loans by Economic Sector GP (1) Mibanco Sep-23 Wholesale Banking Others (3), 8% Retail Banking Agriculture, 2% -6.0% Fishing, 1% 138,684 137,192 Electricity, Gas and Water 132,860 130,030 130,393 4% 13,328 10,537 7,678 4,251 Consumer, 28% 5,590 Construction,
Slide 14: Deposit Growth
Deposit Growth Evolution (S/ million, %) Demand deposits Time deposits Saving deposits Severance indemnity deposits (CTS) -0.9% 133,607 129,820 131,931 127,559 132,341 49,327 44,601 43,789 40,886 41,506 50,624 46,717 46,503 52,053 51,669 29,725 34,194 36,411 41,086 28,481 3,746 3,825 3,323 3,545 3,2
Slide 15: Financial Performance
Financial Performance Net Income & ROAE (S/ million, %) Net Interest Income & Margin (S/ million,%) 2,000 24.3% 24.6% 23.9% 7.2% 7.6% 7.7% 8.2% 8.3% 6,000 25.0% 19.3% 19.6% 20.0% 5,000 5.0% 6.2% 6.2% 6.5% 6.6% 1,500 1,328 5.6% 1,288 1,296 15.0% 4,000 1,123 0.0% 1,058 2,931 2,914 2,981 3,033 10.0% 3,
Slide 16: Asset Quality
Asset Quality Cost of Risk & Provisions (%, S/ million) Delinquency Ratios(1) (%) NPL Ratio PDL Ratio Provision expense Cost of Risk NPL Coverage Ratio PDL Coverage Ratio Recoveries 2.70% 143 146 140 136 131 2.28% 2.08% 1.99% 105 105 105 103 96 1.31% 889 5.91 6.24 706 740 5.58 5.65 5.67 656 4.31 4.3
Slide 17: Capital Management
Capital Management(1) BCP Internal CET1 (%) – calculated in accordance with IFRS SBS Regulatory Capital (%) – calculated in accordance with Peru GAAP Change of Regulation 17.20% 17.51% 13.04% 16.45% 12.79% 15.39% 12.59% 4.45% 4.50% 4.59% 11.39% 4.89% 11.83% 11.93% 11.63% 11.57% 4.49% 11.00% 15.79% 1
Slide 18: Appendix
Appendix
Slide 19: Our Purpose: Transforming Plans into Reality
Our Purpose: Transforming Plans into Reality (1) Source: BCP 19
Slide 20: Our Purpose: Transforming Plans into Reality
Our Purpose: Transforming Plans into Reality Strategic Priorities Experience Efficiency Enablers Most Tech & Agile and Efficient The Best Reconnection New Income The Best Data-driven effective with societies Bank with Experience Sources Team Organizatio operating digital n model approach Remaining D
Slide 21: In 3Q 2023 we made an important progress in our sustainability journey
In 3Q 2023 we made an important progress in our sustainability journey BCP Sustainability program, aligned with Credicorp’s ESG strategy To create a more sustainable and inclusive economy To improve financial health of people To empower our people to thrive Boosting SME’s business Financial Inclusio
Slide 22: Macroeconomic outlook - Peru
Macroeconomic outlook - Peru Peru Rating (outlook): Baa1 (n) / BBB (n) / BBB (n) 2017 2018 2019 2020 2021 2022 2023F 2024F Economic activity Nominal GDP (USD mn) 215,944 226,919 232,519 205,755 225,803 244,789 267,500 282,489 GDP per capita (USD) 6,972 7,190 7,237 6,306 6,835 7,330 7,894 8,283 Real
Slide 23: Selected Financial Information
Selected Financial Information Income Statement Summary Quarters (PEN in millions) 3Q22 2Q23 3Q23 QoQ Growth YoY Growth Financial income 3,466 4,088 4,244 3.8% 22.4% Financial expense -795 -1,107 -1,211 9.4% 52.3% Gross financial margin 2,670 2,980 3,032 1.7% 13.6% Provision for loan losses -454 -74
Slide 24: Selected Financial Information
Selected Financial Information Balance Sheet Summary (PEN in millions) 3Q22 2Q23 3Q23 QoQ Growth YoY Growth Cash and due from banks and interbank funds 34,247 30,615 30,289 -1.1% -11.6% Investments at fair value through profit or loss and available-for-sale 26,072 investments, 26,462 net 29,865 12.9
Slide 25: Selected Financial Information
Selected Financial Information Selected Financial Ratios QoQ Growth YoY Growth (%) 3Q22 2Q23 3Q23 (pbs) (pbs) Financial margin 5.63% 6.47% 6.58% 11 95 ROAE 24.35% 23.90% 19.57% -433 -478 ROAA 2.65% 2.73% 2.36% -37 -29 Cost of risk 1.31% 2.28% 2.70% 42 138 Past due loans ratio 4.31% 4.35% 4.60% 24 28
Slide 26: Experienced Management Team
Experienced Management Team General Manager (CEO) ▪ Joined BCP in 1994 Diego Cavero ▪ MBA from the University of Texas Francesca Raffo Reynaldo José Luis César Ríos Deputy CEO Llosa Carrera Transformation and Karim Mitre Innovation Calderon ▪ Previously Chief Risk Officer Planning and Finance Wholes
Slide 27: Top Tier Credit Ratings
Top Tier Credit Ratings Local Credit Rating Agencies International Credit Rating Agencies BCP AAI Moody’s Local BCP Fitch S&P Moody´s (1) Date of last review Sep-23 Sep-23 Date of last review Sep-23 May-23 Sep-23 Institution A+ A+ Outlook Negative Negative Negative Issuer rating BBB BBB Baa1 Long Te
Slide 28: BCP Corporate Bonds and subordinated debt
BCP Corporate Bonds and subordinated debt Breakdown of international bonds Issued Amount Outstanding Coupon Bond Issue date Due date Tenure (years) Currency Original Amount Original rate Currency (000) Currency (000) Subordinated 01/07/2020 01/07/2025(1) 10(1) USD 850,000 850,000 3.13% Subordinated
Slide 29: Client Segmentation
Client Segmentation Business Group Client Income/Sales/Total debt Annual sales higher than $100 million Corporate Wholesale Banking (equivalent to S/399 million) Group (WBG) (1) Annual sales from $10 million to $100 million Middle-Market (equivalent to S/40 million to S/399 million) Individual month
Slide 30: Table of Calculations
Table of Calculations Profitability Net interest margin (NIM) Annualized net interest income/ Average* interest earning assets Annualized [ Interest on loans–(Interest expense x (Average* total loans Net interest margin on loans (NIM on loans) a/.Average interest earning assets)) ] / Average total l
Slide 31: Contacts
Contacts Head of Treasury Division Head of ALM Pablo Hurtado Rocio Benavides Banco de Crédito BCP Banco de Crédito BCP Calle Centenario 156 Calle Centenario 156 La Molina, Lima - 12, PERU La Molina, Lima - 12, PERU Phone: (+511) 313-2500 Phone: (+511) 313-2168 E-mail: [email protected] E-mail
Banco de Crédito del Perú — Debt Investor Presentation (November 2023) on 6ix