Banco de Credito del Peru SA · BVL:CREDITC1
Banco de Credito del Peru SA — Debt Investor Presentation (March 2024)
31 slides from Banco de Credito del Peru SA's debt investor presentation, March 2024
Slide 1: Fixed Income Presentation
Fixed Income Presentation First Quarter 2022 Datos elaborados por BCP para uso Interno
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 Datos elaborados por BCP para uso Interno
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 15.00 6.3 13.00 6.0 11.00 Avg. 2010-2019 7.7% 3.7 3.5 4.0 3.1 3.1 3.2 3.2 9.00 Avg. 2022-2026 4.2% 7.00 2.0 5.00 0.0 3.00 1.00 -2.0 -1.00 2002 2006 2000 2004 2008 2010 2012 2014 2016 2018 20
Slide 5: Peru's economy was affected by several shocks in 2023
Peru’s economy was affected by several shocks in 2023 Real GDP by demand components Real GDP by sectors 2023 (contribution to GDP and GDP in % change YoY) (1) (% change YoY) (2) 6.0 Primary sectors -0.6% GDP in 2023 - weakest Share (%) Non-primary sectors 5.0 since 1991 (exc. 2020) 4.0 1.9 Electrici
Slide 6: El Niño dissipates; economy shows initial signs of recovery
“El Niño” dissipates; economy shows initial signs of recovery Electricity demand (y/y % change, as of Jan 31) (2) 8.0 Total 7.0 Without mining Sea Surface temperature anomaly in the north-coast of Peru 6.0 (change. ºC, as of Feb 6) (1) 5.0 3.9 4.0 3.2 3.4 Extraordinary 3.0 3.0 2.0 2.8 1.0 2.6 0.0 2.
Slide 7: CB cuts rates amid lower inflation and weak economy
CB cuts rates amid lower inflation and weak economy Inflation Rate Central Bank Monetary Policy Rate (% YoY, as of January 2024) (1) (%, as of February 2024) (2) 15.0 7.75 Headline CPI 12.0 PPI 6.25 9.0 6.0 3.0 3.0 2.25 0.0 -2.1 0.25 -3.0 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Jan18 May18 Jan19 May19 J
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 5.5 2.6 2.6 2.3 2.3 2.2 4.2 2.0 1.9 3.9 3.6 3.6 3.0 2.6 2.0 Chile Bolivia Peru Colombia Brazil Uruguay Ecuador
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 2023 International Reserves 2023 (% of GDP) (1) (% of GDP) (1) 90 82 30 27 80 70 25 58 60 20 18 50 16 39 40 33 15 14 12 30 20 10 10 4 5 0 Peru Chile Colombia Bolivia 0 Per
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) 2013 2023 12.9% Interbank 33.6% #1 13.4% Gross Loans 60.1 131.8 2x 15.0% 3.8% Total Assets 98.5 193.8 2x Scotiabank 21.4% BBVA Total Deposits 64.8 132.3 2x #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: 45.1% 195,193 197,833 191,858 190,877 17.6% 18.3% 16.6% 16.1% 18.8% 14.3% 12.9% 15.6% 9.4% 4.7% 1.5% 12.6% 62.3% 62.9% 54.5% 47.5% 3.4% 3.5% 3.5% 3.9% 2020 2021
Slide 13: Loan Portfolio
Loan Portfolio Evolution (S/ million, %) Loans by Economic Sector GP (1) Mibanco Dec-23 Wholesale Banking Others (3), 8% Retail Banking Agriculture, 2% +3.8% Fishing, 2% 147,020 144,837 Electricity, Gas and Water 4% Consumer, 28% 22,477 14,425 130,958 124,024 5,249 Construction, 3% 11,131 55,609 Com
Slide 14: Deposit Growth
Deposit Growth Evolution (S/ million, %) Demand deposits Time deposits Saving deposits Severance indemnity deposits (CTS) +4.2% 132,151 129,820 132,309 126,972 44,601 45,230 50,567 53,331 51,669 49,417 47,406 53,823 21,262 29,725 34,476 20,980 7,737 4,017 3,825 3,186 2020 2021 2022 2023 41.5% 44.3%
Slide 15: Asset Quality
Asset Quality PDL with >90 days overdue(2) (%) Delinquency Ratios(1) (%) NPL Ratio NPL Coverage Ratio 6.8 138 5.2 115 5.1 105 100 4.6 3.4 3.5 6.16 3.1 3.3 5.65 3.0 3.0 3.1 5.30 2.7 4.88 2020 2021 2022 2023 2020 2021 2022 2023 BCP Stand-Alone Mibanco BCP & Subsidiaries Non-Performing Loans by Segment
Slide 16: Financial Performance
Financial Performance Net Interest Income & Margin (S/ million,%) Non-financial Income Composition (S/ million,%) Fee income Others (1) 18,000 6.7% 7.2% 8.2% 5.9% Net gain on FX trans. 16,000 6.9% 6.5% 5.0% Net gain (loss) on Securities 14,000 5.5% 4.7% 12,072 4,465 12,000 4,226 10,225 0.0% 3,812 10
Slide 17: Capital Management
Capital Management The Peruvian Regulator implemented Basel III as of 2023. Main changes: ▪ Monitoring of three solvency ratios: CET1, Regulatory Capital Tier 1 and Total Regulatory Capital. ▪ Inclusion of Earnings from prior years and from the year in progress, unrealized gains/losses in capital ra
Slide 18: Capital Management – Regulatory Requirements
Capital Management – Regulatory Requirements The Peruvian Regulator implemented Basel III as of 2023. Nonetheless, there is a phase-in timeline that ends in 2026. CET1 Tier 1 CET1 Base CET1 Requirement 20% 20% Conservation Buffer Additional Tier 1 D-SIB (*) 15% 15% 13.09% 13.09% 10.50 % 9.00% 10% 10
Slide 19: Appendix
Appendix Datos elaborados por BCP para uso Interno
Slide 20: We assume a leading role in driving the changes our country needs
We assume a leading role in driving the changes our country needs… ESG Results (2020–4Q23) RECENT PROGRESS Launch of Sustainable +4.1MM +1.3MM +270K Products People financially People impacted by SMEs trained in our Green Mortgage and Green included 1 Financial Education Program “Contigo Emprendedor
Slide 21: Sustainability Strategy supported by three main pillars
…and have proactively established a Sustainability Strategy supported by three main pillars Create a more sustainable Improve the financial Empower our people and inclusive economy health of citizens to thrive ● Increase financial inclusion ● Become #1 in delivering the best ● Champion diversity, in
Slide 22: Capturing Value from Digitalization
Capturing Value from Digitalization Digital Clients Evolution(1) Digital Sales(2) (%, Thousands) (%, Thousands of units per month) 10,227 13,007 15,530 1,069 982 759 32% 44% 44% 80% 79% 88% 56% 68% 56% 20% 21% 12% 2021 2022 2023 2021 2022 2023 Non Digital Digital Non Digital Digital Yape Transaction
Slide 23: Macroeconomic outlook - Peru
Macroeconomic outlook - Peru Peru Rating (outlook): Baa1 (n) / BBB (n) / BBB (n) 2016 2017 2018 2019 2020 2021 2022 2023F 2024F Economic activity Nominal GDP (USD mn) Daniela 195,909 215,944 226,919 232,519 205,755 225,803 244,789 266,782 277,498 GDP per capita (USD) 6,440 6,972 7,190 7,237 6,306 6,
Slide 24: Selected Financial Information
Selected Financial Information For the 12 months ending Income Statement Summary December 31 (PEN in millions) 4Q22 3Q23 4Q23 QoQ Growth YoY Growth 2022 2023 Annual Growth (FY) Financial income 3,840 4,244 4,291 1.1% 11.7% 13,002 16,527 27.1% Financial expense -908 -1,211 -1,148 -5.2% 26.4% -2,777 -
Slide 25: Selected Financial Information
Selected Financial Information Balance Sheet Summary (PEN in millions) 4Q22 3Q23 4Q23 QoQ Growth YoY Growth Cash and due from banks and interbank funds 31,708 30,289 30,853 1.9% -2.7% Investments at fair value through profit or loss and available-for-sale 24,540 29,865 29,997 0.4% 22.2% investments,
Slide 26: Selected Financial Information
Selected Financial Information Selected Financial Ratios (%) 4Q22 3Q23 4Q23 QoQ Growth (pbs) YoY Growth (pbs) Financial margin 6.17% 6.58% 6.74% 15 57 ROAE 19.27% 19.57% 15.22% -436 -406 ROAA 2.18% 2.36% 1.89% -47 -29 Cost of risk 2.08% 2.70% 3.57% 88 149 Past due loans ratio 4.14% 4.60% 4.40% -19 2
Slide 27: Experienced Management Team
Experienced Management Team General Manager (CEO) Diego Cavero ▪ Joined BCP in 1994 ▪ MBA from the University of Texas Francesca Raffo Fernando José Luis Reynaldo Llosa César Ríos Deputy CEO Muñiz Carrera Transformation and Karim Mitre Innovation Calderon ▪ Previously SME VP Chief Risk Officer Plann
Slide 28: 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 29: 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 Currency Amount Original (000) rate Currency (000) Subordinated 01/07/2020 01/07/2025(1) 10(1) USD 850,000 850,000 3.13% Subordinated
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
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