Earnings Release 1Q / 2024 – Form 6-K
| Earnings Release 1Q / 2024 | |||
Table of Contents
| Operating and Financial Highlights | 03 | |
| Senior Management Quotes | 05 | |
| First Quarter 2024 Earnings Conference Call | 06 | |
| Summary of Financial Performance and Outlook | 07 | |
| Financial Overview | 12 | |
| 13 | ||
| Analysis of 1Q24 Consolidated Results |
| 01 | Loan Portfolio | 16 | |
| 02 | Deposits | 19 | |
| 03 | Interest Earning Assets and Funding | 22 | |
| 04 | Net Interest Income (NII) | 23 | |
| 05 | Portfolio Quality and Provisions | 27 | |
| 06 | Other Income | 31 | |
| 07 | Insurance Underwriting Results | 34 | |
| 08 | Operating Expenses | 36 | |
| 09 | Operating Efficiency | 38 | |
| 10 | 39 | ||
| 11 | Economic Outlook | 41 | |
| 12 | Appendix | 45 |
| Datos elaborados por BCP para uso Interno | 2 |
| | | Earnings Release 1Q / 2024 | ||
| Operating and Financial Highlights |
ROE stood at 18.2%, including a reversal for provisions at BCP and Mibanco, in a context of weak loan growth and a gradual improvement in the economy.
The resilience of Risk-Adjusted NIM reflects a disciplined strategy for interest rate management, backed by our position as leader in low-cost funding and a reduction in provisions.
Diversification of income sources with YoY increases of 9.4% in Net Interest Income (NII) and 8.7% in Other Core Income.
Controlled Cost of Risk, which rose 30 bps YoY to stand at 2.3%, while the NPL Ratio increased 77 bps to situate at 6.2%.
Efficiency ratio improved 70 bps YoY to 43.6%, mainly reflecting positive operating leverage at BCP.
1Q24 OPERATING AND FINANCIAL HIGHLIGHTS
| ● | Net Income attributable to |
| ● | Total Loans, measured in average daily balances (ADB), dropped 1.3% QoQ (-1.4% FX Neutral) and 3.1% YoY (-2.8% FX Neutral), due primarily to a drop in Wholesale Banking balances and to amortization of Government Program Loans (GP). These loans represented 2.1% of the total portfolio at quarter-end and were mainly concentrated in SME- Pyme and SME-Business at BCP. |
| ● | Total Deposits remained relatively stable, dropping 0.1% QoQ (0.0% FX Neutral). Growth in Time Deposits was offset by a reduction in balances for Low-Cost Deposits. YoY, Total Deposits decreased 0.5% (+0.1% FX Neutral). Low-cost Deposits continue to be the main source of funding and represents 67.4% of total deposits. |
| ● | Net Interest Margin (NIM) increased 10 bps QoQ to stand at 6.30%, which reflects a slight increase in the yield on IEAs and a drop in the Funding Cost. YoY, NIM increased 46 bps. |
| ● | The NPL Ratio rose 34 bps QoQ to 6.2%, driven by an uptick in refinancings and an increase in delinquency in various segments, particularly in old vintages. At BCP, growth in delinquency was driven by: (i) Consumer, (ii) Mortgages, and (iii) Wholesale Banking. These dynamics were partially offset by amortization of Government Program (GP) lloans in SME-Pyme. At Mibanco, delinquency was concentrated in old vintages. |
| ● | Provisions dropped 30.6% QoQ, which reflects the impact of a reversal of approximately S/250 million for El Niño provisions. If we isolate the impact of El Niño provisions in both quarters, provisions increase 16.0% QoQ, driven mainly by BCP and, to a lesser extent, by Mibanco. The Cost of Risk fell to 2.3%, but if we isolate the effect of El Niño provisions, the Cost of Risk rose 45 bps QoQ to stand at 3.0%. The NPL Coverage Ratio stood at 93.5%. |
| ● | Core Income rose 2.3% QoQ, driven mainly by growth in Net Interest Income (NII), via repricing of Available Funds, mainly in US dollars, and through an increase in interest on investments. Other Core Income was up 2.0% QoQ, fueled by growth in Credit Cards transactions through the e-commerce channel and by an uptick in transactions through Yape. YoY, Core Income increased 9.2%, spurred mainly by an increase in NII. |
| Datos elaborados por BCP para uso Interno | 3 |
| | | Earnings Release 1Q / 2024 | ||
| Operating and Financial Highlights |
| ● | Insurance Underwriting Results contracted 2.9% QoQ, after reporting unusually high levels in 4Q23. The contraction this quarter was driven primarily by a reduction in the Underwriting Result in Life, primarily through Disability and Survivorship (D&S) and in Credit Life. YoY, Insurance Underwriting Result contracted by 5.8%. |
| ● | The Efficiency Ratio improved 70 bps YoY to stand at 43.6%, impacted primarily by positive operating leverage at BCP in a context of an uptick in expenses associated with disruptive initiatives and IT expenses at BCP's core businesses. Mibanco also reported positive operating leverage. |
| ● | Yape, continues to scale and reached the 11.5 million monthly active users mark in 1Q24; 75% of these affiliates generate fee income. Yape is on its way to breaking even in 2024. |
| ● |
| ● | At BCP, the Liquidity Coverage Ratio (LCR) in PEN at 30 days stood at 199.8% under regulatory requirements and 154.5% based on more stringent internal requirements, while |
| ● | In |
| Datos elaborados por BCP para uso Interno | 4 |
| | | Earnings Release 1Q / 2024 | ||
| Senior Management Quotes |
SENIOR MANAGEMENT QUOTES
| Datos elaborados por BCP para uso Interno | 5 |
| | | Earnings Release 1Q / 2024 | ||
| First Quarter 2024 Earnings Conference Call |
FIRST QUARTER 2024 EARNINGS CONFERENCE CALL
Date:
Time:
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For a full version of Credicorp´s Fourth Quarter 2023 Earnings Release, please visit:
https://credicorp.gcs-web.com/financial-information/quarterly-results
| Datos elaborados por BCP para uso Interno | 6 |
| | | Earnings Release 1Q / 2024 | ||
| Summary of Financial Performance and Outlook |
Loans in Average Daily Balances (ADB)
Total loans, measured in ADB, dropped 1.3% QoQ (-1.4% FX Neutral) to total S/140,429 million. This decrease was driven mainly by i) Wholesale Banking at BCP, due to a lower demand, ii) SME-Business & SME-Pyme segments at BCP, in line with the amortization of government program (GP) loans; and iii) Mibanco, in line with more restrictive origination policies.
YoY, total loans in ADB fell 3.1% (-2.8% FX Neutral), driven mainly by: i) Wholesale Banking at BCP; ii) SME-Business and SME-Pyme at BCP; and iii) Mibanco, due to the same dynamics as those seen QoQ.
GP loans represented 2.1% of total loans at quarter-end and are concentrated in SME-Pyme and SME-Business at BCP.
Deposits
Our deposit base, measured in quarter-end balances, remained relatively stable (+0.1% QoQ and 0.0% FX Neutral). Growth in Term Deposits was largely offset by a drop in balances for Demand and Saving Deposits (Low-cost deposits).
In the YoY comparison, the deposit base dropped 0.5% (+0.1% FX Neutral). Low-cost deposits, which represent 67.4% of our deposit base at quarter-end, continued to play a preponderant role in our funding mix.
Net Interest Income (NII) and Margin (NIM)
NII rose 2.3% QoQ to stand at S/3,426 million. This evolution was driven by an increase in Interest and Similar Income, in line with i) higher interest derived from repricing of Available Funds, mainly in US dollars and ii) growth in interest on investments. Interest and Similar Expenses fell 1.5% QoQ, in line with a decrease in the Cost of Funding, after term deposits were renewed at lower rates. In this context, the yield on IEA and the Cost of Funding reported slight improvements, which led NIM to stand at 6.30% at quarter-end.
YoY, NII rose 9.4%, driven primarily by a shift in the loan mix toward retail segments coupled with repricing of our dollar book.
| Datos elaborados por BCP para uso Interno | 7 |
| | | Earnings Release 1Q / 2024 | ||
| Summary of Financial Performance and Outlook |
Portfolio Quality and Cost of Risk
QoQ, the NPL balance increased 2.7%. This evolution was driven by growth in (i) Consumer, in line with an uptick in refinancing; (ii) Mortgage, in line with an increase in volumes of overdue loans; (iii) Wholesale Banking, due to refinancing for a specific client; and iv) Mibanco, in line with an uptick in overdue loans, primarily in old vintages.
YoY, the NPL balance rose 10.8%. This growth was concentrated in: i) Consumer, driven by an uptick in refinancing and in overdue loans, particularly in old vintages; ii) Mortgage, mainly due to growth in overdue and refinancing loans, and iii) Mibanco, in line with an increase in overdue loans.
In this context, NPL ratio stood at 6.2% by quarter-end. QoQ, the NPL ratio rose by 34 bps, mainly due to a loan contraction and the aforementioned NPL volume dynamics. YoY, the NPL Ratio rose 77 bps, fueled mainly by the aforementioned increase in the NPL balance and secondarily, by a loan contraction.
Provisions this quarter reflected the impact of a reversal of approximately S/250MM in provisions for the El Niño Phenomenon. Throughout this report, our analysis of provision expenses and Cost of Risk will isolate the impact of El Niño provisions registered in 4Q23 and reversed in 1Q24. If we isolate this effect, provisions rose 16.0% QoQ, driven by BCP, and to lesser extent, by Mibanco. At BCP, the following dynamics were noteworthy: i) Mortgage, due to a base effect given that in 4Q23, reversals were reported for specific sub-products and; ii) SME-Pyme, in line with an increase in write-offs (loans that were not 100% provisioned) and with estimates that risk levels rose due to a deterioration in client payment capacities. At Mibanco, the following points were noteworthy: i) a deterioration in the portfolio, particularly in old vintages. YoY, isolating the impact of the aforementioned provision reversal, provisions rise 46.9%, driven by i) SME-Pyme and Credit Cards, which were impacted by a deterioration in payment capacity, and by ii) Consumer, in line with a downtuin payment performance.
If we isolate the effect of El Niño Provisions, the Cost of Risk rose to 3.0%. While the NPL Coverage Ratio, in turn, stood at 93.5%.
| Datos elaborados por BCP para uso Interno | 8 |
| | | Earnings Release 1Q / 2024 | ||
| Summary of Financial Performance and Outlook |
Other Income
Other Core Income1 increased 2.0% QoQ, driven primarily by BCP. Noteworthy drivers of the increase were the growth in credit cards transactions through the e-commerce channel and, secondarily, the uptick in transactions through Yape. YoY, Other Core Income rose 8.7%, spurred primarily by BCP, driven by solid growth in fee income through Yape and an uptick in transactions via credit and debit cards, and secondarily, by
Other Non-Core Income1 dropped 18.4% QoQ, due to a drop in the Gain on Securities at BCP and Pacifico. YoY, Other Non-Ordinary income rose 13.6%, driven by an uptick in the Gain on Derivatives at
1. See calculation formula in Annex 12.7.
Insurance Underwriting Result
The Insurance Underwriting Result dropped 2.9% QoQ. This evolution was triggered by a drop in the underwriting result in the Life business, which was impacted by a reduction in income through D&S and Credit Life.
YoY, the Insurance Underwriting Result decreased 5.8%, driven by a lower underwriting result in Life, which was mainly attributable to a reduction in income from the D&S business.
| Datos elaborados por BCP para uso Interno | 9 |
| | | Earnings Release 1Q / 2024 | ||
| Summary of Financial Performance and Outlook |
Efficiency
In 1Q24, the Efficiency ratio stood at 43.6%, which reflects an improvement of 70 bps with regard to 1Q23. This dynamic was driven by the positive operating leverage, mainly at BCP.
Net earnings attributable to
In 1Q24, net income attributable to
Contributions and ROE by subsidiary in 1Q24
(S/ millions)
| (1) | At BCP Stand Alone, the figure is lower than net income because it does not include gains on investments in other |
| (2) | At Mibanco, the figure is lower than net income because |
| (3) | The Contribution of Grupo Pacífico presented here is higher than the earnings reported for Pacifico Seguros because it includes 100% of Crediseguros (including 48% under |
| Datos elaborados por BCP para uso Interno | 10 |
| | | Earnings Release 1Q / 2024 | ||
| Summary of Financial Performance and Outlook |
| Datos elaborados por BCP para uso Interno | 11 |
Financial Overview
| | | Earnings Release 1Q / 2024 | ||
| Financial Overview |
| Quarter | % change | ||||
| S/000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Net interest, similar income and expenses | 3,132,089 | 3,347,684 | 3,426,123 | 2.3% | 9.4% |
| Provision for credit losses on loan portfolio, net of recoveries | (726,998) | (1,173,454) | (814,699) | -30.6% | 12.1% |
| Net interest, similar income and expenses, after provision for credit losses on loan portfolio | 2,405,091 | 2,174,230 | 2,611,424 | 20.1% | 8.6% |
| Other income | 1,333,275 | 1,486,823 | 1,459,394 | -1.8% | 9.5% |
| Insurance underwriting result | 296,341 | 287,295 | 279,062 | -2.9% | -5.8% |
| Total expenses | (2,126,908) | (2,661,542) | (2,279,317) | -14.4% | 7.2% |
| Profit before income tax | 1,907,799 | 1,286,806 | 2,070,563 | 60.9% | 8.5% |
| Income tax | (493,466) | (434,648) | (528,466) | 21.6% | 7.1% |
| Net profit | 1,414,333 | 852,158 | 1,542,097 | 81.0% | 9.0% |
| Non-controlling interest | 30,060 | 10,331 | 30,440 | 194.6% | 1.3% |
| Net profit attributable to |
1,384,273 | 841,827 | 1,511,657 | 79.6% | 9.2% |
| Dividends distribution, net of treasury shares effect (S/000) | - | - | - | - | - |
| Net income / share (S/) | 17.4 | 10.6 | 19.0 | 79.6% | 9.2% |
| Dividends per share | - | - | - | - | - |
| Loans | 145,165,713 | 144,976,051 | 140,798,083 | -2.9% | -3.0% |
| Deposits and obligations | 148,623,300 | 147,704,994 | 147,857,127 | 0.1% | -0.5% |
| Net equity | 30,359,898 | 32,460,004 | 33,853,460 | 4.3% | 11.5% |
| Profitability | |||||
| Net interest margin (1) | 5.84% | 6.20% | 6.30% | 10 bps | 46 bps |
| Risk-adjusted Net interest margin | 4.54% | 4.10% | 4.85% | 75 bps | 31 bps |
| Funding cost (2) | 2.61% | 3.03% | 2.98% | -5 bps | 37 bps |
| ROAE | 18.66% | 10.57% | 18.24% | 767 bps | -42 bps |
| ROAA | 2.34% | 1.41% | 2.52% | 111 bps | 18 bps |
| Loan portfolio quality | |||||
| Internal overdue ratio (3) | 4.0% | 4.2% | 4.4% | 18 bps | 42 bps |
| Internal overdue ratio over 90 days | 3.0% | 3.5% | 3.6% | 10 bps | 54 bps |
| NPL ratio (4) | 5.4% | 5.9% | 6.2% | 33 bps | 77 bps |
| Cost of risk (5) | 2.0% | 3.2% | 2.3% | -96 bps | 30 bps |
| Coverage ratio of IOLs | 136.7% | 135.1% | 132.0% | -312 bps | -472 bps |
| Coverage ratio of NPLs | 100.1% | 97.0% | 93.5% | -355 bps | -659 bps |
| Operating efficiency | |||||
| Operating income (6) | 4,602,331 | 4,893,605 | 5,000,613 | 2.2% | 8.7% |
| Operating expenses (7) | 2,038,309 | 2,395,688 | 2,179,645 | -9.0% | 6.9% |
| Efficiency ratio (8) | 44.3% | 49.0% | 43.6% | -537 bps | -70 bps |
| Operating expenses / Total average assets | 3.5% | 4.0% | 3.6% | -39 bps | 18 bps |
| Capital adequacy - BCP Stand-alone | |||||
| 16.45% | 17.46% | 16.12% | -134 bps | -33 bps | |
| Tier 1 ratio (10) | 11.86% | 13.09% | 11.72% | -137 bps | -15 bps |
| Common equity tier 1 ratio (11)(13) | 11.93% | 13.20% | 11.86% | -135 bps | -7 bps |
| Capital adequacy - Mibanco | |||||
| 18.76% | 20.56% | 18.03% | -253 bps | -73 bps | |
| Tier 1 ratio (10) | 16.40% | 18.22% | 15.69% | -253 bps | -71 bps |
| Common equity tier 1 ratio (11)(13) | 16.38% | 18.37% | 16.06% | -231 bps | -32 bps |
| Employees | 37,184 | 36,947 | 35,508 | -3.9% | -4.5% |
| Share Information | |||||
| Issued Shares | 94,382 | 94,382 | 94,382 | 0.0% | 0.0% |
| Treasury Shares (12) | 14,887 | 14,886 | 14,908 | 0.1% | 0.1% |
| Outstanding Shares | 79,495 | 79,496 | 79,474 | 0.0% | 0.0% |
(1) Net Interest Margin = Net Interest Income (Excluding Net Insurance Financial Expenses) / Average Interest Earning Assets
(2) Funding Cost = Interest Expense (Does not include Net Insurance Financial Expenses) / Average Funding
(3) Internal Overdue Loans: includes overdue loans and loans under legal collection, according to our internal policy for overdue loans. Internal Overdue Ratio: Internal overdue loans / Total loans
(4) Non-performing loans (NPL): Internal overdue loans + Refinanced loans. NPL ratio: NPL / Total loans.
(5) Cost of risk = Annualized provision for loan losses, net of recoveries / Average Total loans. Cost of risk = Annualized provision for loan losses, net of recoveries / Average Total loans.
(6) Operating Income = Net interest, similar income and expenses + Fee Income+ Net gain on foreign exchange transactions +
(7) Operating Expenses = Salaries and employee benefits + Administrative expenses + Depreciation and amortization
(8) Efficiency Ratio = Operating Expenses / Operating Income
(9)
(10) Tier 1 = Capital + Legal and other capital reserves + Accumulated earnings with capitalization agreement + (0.5 x Unrealized profit and net income in subsidiaries) -
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 -
(11) Common Equity Tier I = Capital + Reserves - 100% of applicable deductions (investment in subsidiaries, goodwill, intangibles and net deferred taxes that rely on future profitability) + retained earnings + unrealized gains.
(12) These shares are held by
(13) Common Equity Tier I calculated based on IFRS Accounting.
| Datos elaborados por BCP para uso Interno | 12 |
| | | Earnings Release 1Q / 2024 | ||
Main KPIs of
| Transformation of traditional businesses (1) | Subsidiary | 1Q23 | 4Q23 | 1Q24 |
| Day-to-day | ||||
| Digital Monetary Transactions (2) | BCP | 69% | 80% | 81% |
| Disbursements through Leads (3) | Mibanco | 77% | 71% | 69% |
| Disbursements through Alternative Channels (4) | Mibanco | 17% | 13% | 22% |
| Mibanco Productivity (5) | Mibanco | 28 | 21.6 | 25 |
| Cashless | ||||
| Cashless Transactions (6) | BCP | 48% | 51% | 56% |
| Mobile Banking rating iOs | BCP | 4.7 | 4.7 | 4.8 |
| Mobile Banking rating Android | BCP | 4.6 | 4.7 | 4.6 |
| Digital Acquisition | ||||
| Digital Sales (7) | BCP | 61% | 58% | 61% |
(1) Figures for
(2) Monetary Transactions conducted through Retail Banking, Internet Banking, Yape, and Telecredito/Total Retail Monetary Transactions in Retail Banking.
(3) Disbursements generated through leads/Total disbursements. Figures differ from what was previously reported due to a methodological change.
(4) Disbursements conducted through alternative channels/Total disbursements.
(5) Number of loans disbursed/ Total relationship managers
(6) Amount transacted through Mobile Banking, Internet Banking, Yape y POS/ Total amount transacted through Retail Banking Minorista.
(7) Units sold by Retail Banking through digital channels/ Total number of units sold by Retail Banking.
| Datos elaborados por BCP para uso Interno | 13 |
| | | Earnings Release 1Q / 2024 | ||
Disruptive Initiatives: Yape
Yape is making progress towards its goal of reaching breakeven in 2024. Thanks to new functionalities, Yape's monthly active users (MAU) stood at 11.5, an NPS OF 78 and higher engagement with 1,127 million transactions conducted in 1Q24, which translated into an average of 36 transactions a month per MAU and a TPV of S/50.4 billion. As a result, Yape reached 8.6 million users who generated income, with the average monthly income per active yapero S/3.7, while the expense per active yapero stood at S/3.9.
In 1Q24, the drivers of monetization that stood out for each of Yape's lines of business were:
Payments:
| ● | Bill payments: 23.4 million payments through Yape, representing an increase of 29.9% QoQ and 35.2 times YoY. |
| ● | Payment with QR through POS: 35.6 million payments via POS, representing a growth of 19.5% QoQ and 3.2 times YoY. |
| ● | Mobile Top-Ups: 5.0 million Yaperos made more than 55.5 million mobile top-ups, which reflects growth of 9.5% QoQ and 82.5% YoY. |
Financial:
| ● | Microloans single-installment: 443.9 thousand single-installment microcredits were granted (+55.5 QoQ and +199.0% YoY) for a total of S/89.2 million, which represents growth of 36.7% compared to 3Q23 and 166.0% versus1Q23. |
Marketplace:
| ● | Yape Promos: 2.2 million transactions were conducted through Yape Promos (up +28.6% QoQ and +4.1 times YoY). This level of transactions translates into a GMV (gross merchant volume) of S/41.7 million (+40.3% QoQ and up 3.1 times YoY). |
Main KPIs of Yape
| Disruptive Initiatives: Yape | 1Q23 | 4Q23 | 1Q24 |
| Users | |||
| Users (millions) | 12.3 | 14.2 | 15.1 |
| Monthly Active Users (MAU) (millions) (1) | 8.4 | 10.7 | 11.5 |
| Fee Income Generating MAU (millions) | 4 | 7.9 | 8.6 |
| Engagement | |||
| # Monthly Transactions (millions) | 480.3 | 1,027.90 | 1,127.70 |
| TPV (2) (S/, billions) | 24 | 47.1 | 50.4 |
| Experience | |||
| NPS (3) | 73 | 80 | 78 |
| Metric per Monthly Active User (MAU)) | |||
| Monthly Transactions / MAU | 21 | 35 | 36 |
| Monthly Revenues / MAU | 1.9 | 3.8 | 3.7 |
| Monthly Expenses / MAU | 4.2 | 4.7 | 3.9 |
| Monthly Cash Cost / MAU | 5.2 | 5.1 | 4.2 |
| Monetization Drivers | |||
|
Payments
|
|||
|
# Mobile Top-Ups transactions (millions)
|
30.4 | 50.6 | 55.5 |
|
# Bill Payments transactions (millions)
|
0.6 | 18.1 | 23.4 |
|
# QR POS transactions (millions)
|
280.7 | 910.3 | 1,100.00 |
|
# Checkout transactions (millions)
|
0.6 | 3.3 | 4 |
|
|
|||
|
Yape Promos GMV (4) (S/, millones)
|
10.1 | 29.7 | 41.7 |
|
Financial
|
|||
|
# Microloans Disbursements (miles)
|
148.5 | 290.5 | 471.5 |
|
# Insurance sales
|
4.9 | 35.3 | 55.1 |
(1) Yape users that have made at least one transaction over the last month.
(2) Total Payment Volume
(3) Net Promoting Score
| Datos elaborados por BCP para uso Interno | 14 |
| | | Earnings Release 1Q / 2024 | ||
Integrating Sustainability in Our Businesses
For more information on our sustainability strategy, program and initiatives, see "Sustainability Strategy 2020-25". Among the milestones reached in the first quarter of this year, we published our Annual and Sustainability Report 2023, which was developed according to GRI and SASB standards. We would like to report on the progress we have made in our Sustainability Program:
| ● | Measuring the portfolio's footprint: Pacífico Seguros and |
| ● | Business Opportunities: The next step in our process to monitor our sustainable financing focuses on disbursements of sustainable loans and on labeling transactions (reported previously). In the first quarter, BCP disbursed a total of |
| ● | Risks: On the investment front, we completed work to define and develop tools for ESG assessment (such as questionnaires and internal scores) for different types of prioritized assets. Atlantic Security Banking was included in the scope of the |
Financial Inclusion: Yape continued to affiliate microbusinesses in intermediate-size cities and smaller population centers in the regions; the app is now present in 12 departments. Also, 72.9 thousand people obtained their first loan from the Financial System through Yape; 43% of them were women. Lastly, the "Agente Móvil" at BCP has traveled 10.8 thousand km and posted a historic high of 15 thousand transactions completed in rural and urban locations in the departments of Arequipa, Cusco and Moquegua.
Financial Education: BCP continued to promote improvements in the financial behavior (Credit Risk, Day-to-Day and Savings Habits) of 64 thousand clients in the first quarter, thanks to its Financial Education through Business initiatives. More than 114 thousand clients from Mibanco received on-line or on-site training on business management, entrepreneurship and finance in 1Q24 through different education strategies at the bank, including the
The table below shows our progress in other initiatives and platforms on the social front:
| Progress on Initiatives | Company | 1Q23 | 4Q23 | 1Q24 |
| Financial Inclusion | ||||
| Financially included through BCP and Yape(2) - cumulative since 2020 | BCP | 2.6 million | 4.1 million | 4.2 million |
| Stock of inclusive insurance policies - YTD | Pacífico Seguros | 2.8 million | 3.2 million | 3.3 million |
| Financial Education | ||||
| Trained through online courses via ABC at BCP ( |
BCP | 117.5 thousand | 614.1 thousand | 142.6 thousand |
| Individuals trained in risk prevention via |
Pacífico Seguros | 0.3 thousand | 38.4 thousand | 0.1 thousand |
| Young people trained through the |
5.6 thousand | 138.0 thousand | 110.4 thousand | |
| Clients trained through the |
Mibanco Perú | 108.0 thousand | 272.0 thousand | 35.9 thousand |
| Opportunities and Products for Women | ||||
| Number of disbursements through Loans for Women (3) | Mibanco Perú | 12.9 thousand | 12.0 thousand | 10.6 thousand |
| Percentage of women banked on the asset side | Mibanco Perú | 54.3% | 55.9% | 63.6% |
| Helping small businesses grow | ||||
| Trained via Accompanying Entrepreneurs (Contigo Emprendedor) - YTD | BCP | 13.1 thousand | 121.0 thousand | 3.7 thousand |
| SME-Pymes financially included through loans (working capital and invoice discounting) - YTD | BCP | 7.7 thousand | 33.9 thousand | 6.0 thousand(4) |
| Microbusiness affiliated to Yape - YTD | BCP | 1.6 thousand | 26.9 thousand | 8.3 thousand |
(2) Stock 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 3 monthly average transactions in the last three months.
(3) Non-cumulative. Figure for the period.
(4) Up to February.
| Datos elaborados por BCP para uso Interno | 15 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 01 | Loan Portfolio |
|
QoQ, total loans measured in average daily balances (ADB) dropped 1.3% (FX neutral -1.4%). This evolution was driven mainly by i) an uptick in loan amortizations in Wholesale Banking, which reflects seasonal factors seen every first quarter ii) an increase in amortizations of Government Program Loans in Small Businesses Banking and iii) tightened lending guidelines at Mibanco. The drop in total loans was partially offset by growth in Mortgage loans. YoY, total loans in average daily balances decreased 3.1% (FX neutral -2.8%). In |
1.1. Loans
Total Loans (in Average Daily Balances) (1)(2)
| Total Loans | As of | Volume change | % change | % Part. in total loans | ||||||
| (S/ millions) | QoQ | YoY | QoQ | YoY | ||||||
| BCP Stand-alone | 118,707 | 116,011 | 114,383 | -1,628 | -4,324 | -1.4% | -3.6% | 81.9% | 81.5% | 81.5% |
| Wholesale Banking | 55,141 | 52,476 | 51,266 | -1,210 | -3,876 | -2.3% | -7.0% | 38.0% | 36.9% | 36.5% |
| Corporate | 32,717 | 30,559 | 29,676 | -883 | -3,041 | -2.9% | -9.3% | 22.6% | 21.5% | 21.1% |
| Middle - Market | 22,424 | 21,916 | 21,589 | -327 | -835 | -1.5% | -3.7% | 15.5% | 15.4% | 15.4% |
| Retail Banking | 63,566 | 63,535 | 63,117 | -418 | -448 | -0.7% | -0.7% | 43.8% | 44.7% | 44.9% |
| SME - Business | 7,884 | 7,168 | 6,872 | -296 | -1,012 | -4.1% | -12.8% | 5.4% | 5.0% | 4.9% |
| SME - Pyme | 16,996 | 16,751 | 16,512 | -239 | -484 | -1.4% | -2.8% | 11.7% | 11.8% | 11.8% |
| Mortgage | 20,282 | 21,061 | 21,235 | 174 | 954 | 0.8% | 4.7% | 14.0% | 14.8% | 15.1% |
| Consumer | 12,984 | 12,604 | 12,496 | -109 | -489 | -0.9% | -3.8% | 9.0% | 8.9% | 8.9% |
| Credit Card | 5,420 | 5,951 | 6,002 | 51 | 582 | 0.9% | 10.7% | 3.7% | 4.2% | 4.3% |
| Mibanco | 14,098 | 13,665 | 13,244 | -421 | -854 | -3.1% | -6.1% | 9.7% | 9.6% | 9.4% |
| Mibanco Colombia | 1,250 | 1,667 | 1,730 | 63 | 479 | 3.8% | 38.3% | 0.9% | 1.2% | 1.2% |
| 8,951 | 9,186 | 9,362 | 175 | 410 | 1.9% | 4.6% | 6.2% | 6.5% | 6.7% | |
| 1,958 | 1,749 | 1,711 | -37 | -247 | -2.1% | -12.6% | 1.4% | 1.2% | 1.2% | |
| BAP's total loans | 144,964 | 142,278 | 140,429 | -1,849 | -4,536 | -1.3% | -3.1% | 100.0% | 100.0% | 100.0% |
|
For consolidation purposes. Loans generated in Foreign Currency (FC) are converted into Local Currency (LC). (1) Includes Workout unit and other banking. For Quarter-end balance figures, please refer to "12. Annexes - 12.3 Loan Portfolio Quality" (2) Internal Management Figures |
QoQ, total loans in average daily balances dropped 1.3% (- 1.4% FX Neutral). The decline was driven mainly by:
| ● | Wholesale Banking, where both Corporate Banking and Middle Market Banking reported lower balances due to seasonal effect, given that clients that took on debt for working capital in 4Q23 amortized their loans in 1Q24. |
| ● | SME-Business and SME-Pyme, due to an uptick in amortizations of Government Program Loans (GP). If we exclude this effect, total loans in ADB fell slightly in SME-Business, while the SME-Pyme rose due to back-to-school campaigns in 1Q24. |
| ● | Mibanco, impacted by tightened lending guidelines and a still complicated scenario in which the industry shows similar commercial behavior. In this context, Mibanco has maintained its market share and is leveraging the strengths of its hybrid model to redirect loan flows to low-ticket, lower-risk loans. |
The aforementioned was partially offset by growth in Mortgage loans.
YoY, total loans in average daily balances decreased 3.1% (- 2.8% FX Neutral). The decline was driven primarily by:
| ● | Wholesale Banking, due to weak macroeconomic performance, limited private investment, and the fact that our clients have less appetite for long-term debt. |
| ● | SME-Business and SME-Pyme, attributable to an uptick in amortizations of Government Program Loans (GP). If we exclude this effect from the calculation, both portfolios present growth. In SME- Pyme, growth was driven by higher-ticket loans. |
| ● | Mibanco, due to the same factors as those seen QoQ. |
| Datos elaborados por BCP para uso Interno | 16 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 01. Loan Portfolio |
The aforementioned was partially offset by loan growth in:
| ● | Mortgage, after new lending products were launched to meet a broader cross-section of needs in the market. |
| ● | Credit Cards, which reflects the growth that occurred during the first half of 2023. However, this growth has slowed in recent months. |
Evolution of Loan Dollarization (in Average Daily Balances) (1)(2)
| Total Loans (S/ millions) |
Local Currency (LC) - S/ millions | % change | Foreign Currency (FC) - US$ millions | % change | % part. by currency | |||||||
| Total | Total | |||||||||||
| Back to index | QoQ | YoY | QoQ | YoY | LC | FC | ||||||
| BCP Stand-alone | 82,117 | 79,425 | 78,220 | -1.5% | -4.7% | 9,615 | 9,728 | 9,598 | -1.3% | -0.2% | 68.4% | 31.6% |
| Wholesale Banking | 25,984 | 23,454 | 22,587 | -3.7% | -13.1% | 7,662 | 7,717 | 7,611 | -1.4% | -0.7% | 44.1% | 55.9% |
| Corporate | 15,065 | 14,017 | 13,126 | -6.4% | -12.9% | 4,639 | 4,398 | 4,393 | -0.1% | -5.3% | 44.3% | 55.7% |
| Middle-Market | 10,919 | 9,436 | 9,462 | 0.3% | -13.3% | 3,023 | 3,318 | 3,218 | -3.0% | 6.5% | 43.9% | 56.1% |
| Retail Banking | 56,133 | 55,972 | 55,633 | -0.6% | -0.9% | 1,953 | 2,011 | 1,987 | -1.2% | 1.7% | 88.2% | 11.8% |
| SME - Business | 4,970 | 4,242 | 4,051 | -4.5% | -18.5% | 766 | 778 | 749 | -3.8% | -2.2% | 59.0% | 41.0% |
| SME - Pyme | 16,830 | 16,589 | 16,339 | -1.5% | -2.9% | 44 | 43 | 46 | 6.0% | 5.2% | 99.0% | 1.0% |
| Mortgage | 18,264 | 19,095 | 19,279 | 1.0% | 5.6% | 530 | 523 | 519 | -0.7% | -2.1% | 90.8% | 9.2% |
| Consumer | 11,514 | 11,075 | 10,934 | -1.3% | -5.0% | 386 | 407 | 415 | 2.0% | 7.3% | 87.5% | 12.5% |
| Credit Card | 4,555 | 4,971 | 5,029 | 1.2% | 10.4% | 227 | 260 | 258 | -0.9% | 13.5% | 83.8% | 16.2% |
| Mibanco | 13,619 | 13,181 | 12,922 | -2.0% | -5.1% | 126 | 129 | 85 | -34.1% | -32.7% | 97.6% | 2.4% |
| Mibanco Colombia | - | - | - | - | - | 329 | 443 | 459 | 3.6% | 39.7% | - | 100.0% |
| - | - | - | - | - | 2,352 | 2,443 | 2,485 | 1.7% | 5.6% | - | 100.0% | |
| - | - | - | - | - | 515 | 465 | 454 | -2.3% | -11.7% | - | 100.0% | |
| Total loans | 95,735 | 92,606 | 91,142 | -1.6% | -4.8% | 12,936 | 13,208 | 13,081 | -1.0% | 1.1% | 64.9% | 35.1% |
|
For consolidation purposes. Loans generated in Foreign Currency (FC) are converted into Local Currency (LC).
(1) Includes Workout unit and other banking. For Quarter-end balance figures, please refer to "12. Annexes - 12.3 Loan Portfolio Quality".
(2) Internal Management Figures
|
At the end of
YoY, the dollarization level of the total portfolio increased 109 bps due to a drop in total loans in LC (-4.8%), which was spurred primarily by amortizations of Government Program Loans and to a lesser extent by growth in total loans in FC (+1.1%).
| Datos elaborados por BCP para uso Interno | 17 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 01. Loan Portfolio |
Evolution of the Dollarization Level of Structural Loans (in Average Daily Balances)
(1) The FC share of
(2) The year with the historic maximum level of dollarization for Wholesale Banking was 2012, for Mibanco was 2016, for Credit Card was in 2021 and for the rest of segments was 2009.
* For dollarization figures in the quarter-end period, please refer to "12. Annexes - 12.3 Loan Portfolio Quality.
Evolution of Loans in Quarter-end Balances
Total loans fell 2.9% QoQ and 3.0% YoY in quarter-end balances. This evolution was fueled by the same factors as those discussed in the analysis of average daily balances.
| Datos elaborados por BCP para uso Interno | 18 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 02 | Deposits |
|
QoQ, the total deposit balance rose 0.1%. This evolution was driven by a 3.0% uptick in Time Deposits, which was partially offset by a drop in the balance for Demand Deposits (-1.8%) and Savings Deposits (-0.3%). YoY, the total deposit balance grew 0.1% (FX neutral). This increase was driven by growth in the balance for Time Deposits (+2.0%, FX neutral) and was offset by a drop in the balances for Savings Deposits (-1.7%, FX neutral) and Severance Indemnity Deposits (-6.8%, FX neutral). 67.4% of total deposits are low-cost (Demand + Savings). In this scenario, |
| As of | % change | Currency | |||||
| Deposits | |||||||
| S/000 | QoQ | YoY | LC | FC | |||
| Demand deposits | 47,483,662 | 48,229,322 | 47,384,819 | -1.8% | -0.2% | 46.3% | 53.7% |
| Saving deposits | 53,418,288 | 52,375,813 | 52,238,357 | -0.3% | -2.2% | 57.9% | 42.1% |
| Time deposits | 43,194,573 | 42,484,664 | 43,775,526 | 3.0% | 1.3% | 45.2% | 54.8% |
| Severance indemnity deposits | 3,322,691 | 3,185,603 | 3,086,767 | -3.1% | -7.1% | 72.2% | 27.8% |
| Interest payable | 1,204,086 | 1,429,592 | 1,371,658 | -4.1% | 13.9% | 29.4% | 70.6% |
| Low-cost deposits (1) | 100,901,950 | 100,605,135 | 99,623,176 | -1.0% | -1.3% | 52.4% | 47.6% |
| Deposits and obligations | 148,623,300 | 147,704,994 | 147,857,127 | 0.1% | -0.5% | 50.4% | 49.6% |
(1) Includes Demand Deposits and Saving Deposits.
QoQ our Total Deposit balance rose 0.1%, driven primarily by:
| ● | 3.0% growth in the balance of Time Deposits, which was fueled mainly by corporate clients at BCP and in FC in the context of high-interest rates. It is important to note that BCP reported a more significant increase in its balance QoQ than that registered by the financial system. |
The aforementioned was partially offset by:
| ● | A 1.8% reduction in Demand Deposits. This decrease was driven by a drop in deposits in FC and LC by corporate and institutional clients at BCP, which sought to increase their interest rate yields via shifts to remunerated accounts. |
| ● | A 0.3% reduction in the balance for Savings Deposits given that in 4Q23; the level was elevated in comparative terms due to statutory bonus payments in the month of December. |
YoY, Total Deposits fell 0.5% (+0.1%, FX neutral). The following dynamics stood out:
| ● | Growth of 1.3% (+2.0%, FX neutral) in the balance for Time Deposits, which was driven primarily by wholesale clients at BCP, which shifted funds to higher-yield deposits in FC. This dynamic was also seen, albeit to a lesser degree, among Mibanco's clients. |
| ● | A 0.2% drop (+0.4%, FX neutral) in the balance for Demand Deposits, which was fueled mainly by an uptick in the FC balance at BCP via corporate and institutional clients. |
The aforementioned was partially offset by:
| ● | A 2.2% reduction in the balance for Savings Deposits (-1.7%, FX neutral), which was driven primarily by a drop in deposits in FC at BCP and, to a lesser extent, at Mibanco. This decrease was mainly driven by internal fund migration to higher-yield deposits. |
| ● | A 7.1% reduction in the balance for Severance Indemnity Deposits (-6.8%, FX neutral), after a government mandate to provide full access to funds kicked in and clients drew down accounts in LC and FC to cover liquidity needs. |
| Datos elaborados por BCP para uso Interno | 19 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 02. Deposits |
Volumes for low-cost deposits dropped 1.0% QoQ and 1.3% YoY. Notwithstanding, these deposits continued to account for a significant portion our total deposits with a 67.4% share at quarter-end (-70 bps QoQ and -50 bps YoY).
Dollarization Level of Deposits
Deposits by Currency
(measured at quarter-end balances)
At the end of
YoY, the dollarization level fell 10 bps, driven primarily by a drop in balances for: (i) Savings Deposits in FC (-6.7%), after funds migrated to higher-yield deposits; and (ii) Severance Indemnity Deposits (-13.3%) in FC, after clients drew down their funds to cover liquidity needs.
Deposits by Currency and Type
(measured at quarter-end balances)
Loan / Deposit Ratio (L/D ratio)
QoQ, the L/D ratio dropped 370 bps and 340 bps at BCP and Mibanco, respectively. These reductions were driven by a decrease in the volume of total loans after credit guidelines were tightened.
In this context, BAP's L/D stood at 95.2%.
| L/D Ratio Local Currency | L/D Ratio Foreign Currency |
| Datos elaborados por BCP para uso Interno | 20 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 02. Deposits |
Market Share of Deposits in the Peruvian Financial System
At the end of
The balance reported by the financial system for low-cost deposits rose in YoY terms. BCP reported a reduction of 1.0%. This decline was primarily driven by a drop in balances for Savings Accounts, which was partially offset by growth in the balance for Demand Deposits. In this context, BCP continued to lead the low-cost deposit market with an MS of 38.8% at the end of
The financial system reported an +8.1% increase in its balance for Time Deposits vs
| Datos elaborados por BCP para uso Interno | 21 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 03 | Interest-Earning Assets (IEAs) and Funding |
|
In 1Q24, IEAs grew 0.6%. This evolution was mainly fueled by Cash and due from banks, which registered an uptick after liquidity levels in both FC and LC rose in a less active lending context. Higher balances of liquid funds were capitalized mainly through BCRP overnight deposits, and to a lesser extent, via BCRP Certificates of deposit (BCRP CDs). Funding rose 0.4% QoQ, mainly due to an increase in Bonds and notes issued. YoY, the investment balance rose, driven by a strategy to capitalize on surpluses and extend asset durations through sovereign bonds and by an increase in the balance of BCRP CDs. Funding increased slightly (+0.4% YoY), fueled primarily by an increase in the balance of Bonds and notes issued, and despite a drop in balances for Deposits and BCRP Instruments. |
3.1. IEAs
| As of | % change | ||||
| Interest Earning Assets | |||||
| S/000 | QoQ | YoY | |||
| Cash and due from banks | 28,158,941 | 25,978,577 | 31,134,572 | 19.8% | 10.6% |
| Total investments | 47,729,504 | 52,215,528 | 52,555,386 | 0.7% | 10.1% |
| Cash collateral, reverse repurchase agreements and securities borrowing | 1,468,180 | 1,410,647 | 1,526,232 | 8.2% | 4.0% |
| Total loans | 145,165,713 | 144,976,051 | 140,798,083 | -2.9% | -3.0% |
| Total interest earning assets | 222,522,338 | 224,580,803 | 226,014,273 | 0.6% | 1.6% |
QoQ, IEAs rose 0.6%. Growth was driven primarily by an uptick in Cash and due from banks, which was partially offset by a drop in the loan balance. The increase registered in Cash and due from banks was spurred by an increase in liquidity at BCP, but also reflected the impact of a drop in loan disbursements over the period. Liquidity maintained in the balance sheet was capitalized primarily through BCRP deposits, registered in the Cash and due from banks account. The investment balance rose 0.7% over the period, driven by an increase in the position of BCRP Certificates of Deposits (BCRP CDs); the position in sovereign bonds, which increased significantly in previous quarters, reported no major shifts this quarter.
YoY, IEAs increased 1.6% due to a strategy implemented last year to increase investments via government bonds to take advantage of favorable interest rates and increase the duration of IEAs. As in the case of the QoQ analysis, the recent rise in the balance for Available funds also contributed to growth in IEA YoY, albeit to a lesser extent, while loans contracted.
| 3.2. | Funding1 |
| Funding | As of | % change | |||
| S/000 | QoQ | YoY | |||
| Deposits and obligations | 148,623,300 | 147,704,994 | 147,857,127 | 0.1% | -0.5% |
| Due to banks and correspondents | 10,199,650 | 12,278,681 | 10,684,673 | -13.0% | 4.8% |
| BCRP instruments | 9,780,540 | 7,461,674 | 6,854,368 | -8.1% | -29.9% |
| Repurchase agreements with clients and third parties | 1,905,955 | 2,706,753 | 2,636,908 | -2.6% | 38.4% |
| Bonds and notes issued | 14,326,930 | 14,594,785 | 17,541,121 | 20.2% | 22.4% |
| Total funding | 184,836,375 | 184,746,887 | 185,574,197 | 0.4% | 0.4% |
(1) Effective 1Q23, Funding includes Repurchase agreements with clients.
QoQ, funding balance increased 0.4%. This growth was driven mainly by an increase in the balance of Bonds and Issued Notes, which was fueled by a corporate bond issuance at BCP for
YoY, the funding balance rose 0.4%, driven upward by growth in the balance of Bonds and Issued Notes. This increase, which was spurred by the same factors as those seen QoQ, was partially offset by a drop in the balance of BCRP Instruments. This decrease was spurred mainly by a drop in demand for BCRP repurchase agreements, as they are currently offered at relatively high rates, and secondarily by the expiration of the balance of BCRP repurchase agreements associated to government program loans (GP).
| Datos elaborados por BCP para uso Interno | 22 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 04 | Net Interest Income (NII) |
|
In 1Q24, Net Interest Income (NII) increased 2.3% QoQ. This evolution was driven mainly by an uptick in Interest and similar income, which rose, to a large extent, on the back of income from deposits in other banks, despite a drop in loan volumes. Interest and similar expenses fell, mainly fueled by a decrease in interest expenses for deposits after term deposits were renewed at lower rates and secondarily, by a drop in interest expenses for due to banks and correspondents. The aforementioned reductions were partially offset by an increase in interest expense for bonds and issued notes, following an issuance at BCP. YoY, NII rose, fueled by an increase in Interest and similar income income (via growth in interest on loans) and despite an uptick in Interest and similar expenses. The loan mix shifted given an increase in retail loans and a reduction in wholesale loans. On the funding side, term deposits, which imply higher rates, rose YoY, leading to an increase in Interest and similar expenses. NIM increased 10 bps QoQ and 46 bps YoY. Risk-adjusted NIM rose 75 bps QoQ and 31 bps YoY. If we exclude the effect of "El Niño" provisions that were constituted in the 4Q23 and reversed in the 1Q24, risk-adjusted NIM fell 16 bps QoQ. |
| Net interest income | Quarter | % change | |||
| S/ 000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Interest Income | 4,456,106 | 4,870,042 | 4,925,926 | 1.1% | 10.5% |
| Interest Expense | (1,324,017) | (1,522,358) | (1,499,803) | -1.5% | 13.3% |
| Interest Expense (excluding Net Insurance Financial Expenses) | (1,208,267) | (1,402,925) | (1,377,799) | -1.8% | 14.0% |
| Net Insurance Financial Expenses | (115,750) | (119,433) | (122,004) | 2.2% | 5.4% |
| Net Interest Income | 3,132,089 | 3,347,684 | 3,426,123 | 2.3% | 9.4% |
| Balances | |||||
| Average Interest Earning Assets (IEA) | 222,289,504 | 223,624,217 | 225,297,538 | 0.7% | 1.4% |
| Average Funding | 185,377,296 | 185,182,243 | 185,160,542 | 0.0% | -0.1% |
| Yields | |||||
| Yield on IEAs | 8.02% | 8.71% | 8.75% | 4bps | 73bps |
| Cost of Funds | 2.61% | 3.03% | 2.98% | -5bps | 37bps |
| Net Interest Margin (NIM)(1) | 5.84% | 6.20% | 6.30% | 10bps | 46bps |
| Risk-Adjusted Net Interest Margin | 4.54% | 4.10% | 4.85% | 75bps | 31bps |
| Peru's Reference Rate | 7.75% | 6.75% | 6.25% | -50bps | -150bps |
| FED funds rate | 5.00% | 5.50% | 5.50% | 0bps | 50bps |
(1) For further detail on the NIM and Cost of Funds calculation, please refer to Annex 12.7
QoQ, Net interest income (NII) rose 2.3%. This evolution was driven primarily by growth in Interest and similar income, which rose on the back of an increase in deposits in other banks after BCP moved to capitalize on surplus liquidity, mainly through FC overnight deposits in BCRP, in a context of slower lending activity. An uptick in income from securities, buoyed by growth in BCRP Certificates of Deposit (BCRP CDs), also bolstered financial income over the quarter, albeit to a lesser extent. Interest and similar expenses, had a positive impact on NII, driven mainly by the balance of term deposits. It is important to note that term deposits, which have been trending upward since 2023, have been renewed at lower rates. The expiration of Due to Banks and correspondents, which constituted short-term positions, also led interest expenses to drop. It is important to note the reductions in expenses for deposits and due to banks and correspondents were partially offset by an uptick in expenses for interest on bonds, which were impacted by the bond issuance that BCP made in January.
YoY, NII rose 9.4% due to an increase in Interest and similar income. This evolution was primarily driven by growth in income from loans, which reflects the positive impact of a shift in the portfolio mix toward a higher share of retail loans and a reduction in wholesale loans. Higher income from securities also contributed, albeit to a lesser extent, to the uptick in income, via an increase in positions in sovereign bonds under a strategy rolled out in 2023 to capitalize on liquidity surpluses. The uptick in Interest and similar expenses partially offset growth in income over the period. These expenses rose given that the share term deposits in the mix rose while the share of low-cost deposits fell, leading to an uptick in the cost of funding.
| Datos elaborados por BCP para uso Interno | 23 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 04. Net Interest Income (NII) |
Net Interest Margin
NIM rose 10 bps QoQ and stood at 6.30%. This evolution was driven primarily by a reduction in interest expenses after terms deposits were renewed at lower rates, and secondarily by an uptick in interest income. YoY, NIM rose 46 bps on the back of an increase in interest income, which was mainly attributable to growth in the share of retail loans within the loan mix and to a renewal of FC loans at higher rates. Risk-adjusted NIM increased 75 bps QoQ. Isolating the effect of provisions for anticipated losses due to "El Niño" in 4Q23 and 1Q24, risk-adjusted NIM fell 16 bps QoQ. YoY, risk-adjusted NIM rose 31 bps (-14 bps isolating "El Niño" provisions).
Net interest margin dynamics by currency
| Interest Income / IEA | 1Q23 | 4Q23 | 1Q24 | ||||||
| S/ millions | Average | Income | Yields | Average | Income | Yields | Average | Income | Yields |
| Balance | Balance | Balance | |||||||
| Cash and equivalents | 27,528 | 277 | 4.0% | 25,443 | 279 | 4.4% | 28,557 | 334 | 4.7% |
| Other IEA | 1,285 | 16 | 5.0% | 1,462 | 28 | 7.5% | 1,468 | 29 | 7.8% |
| Investments | 46,580 | 592 | 5.1% | 51,666 | 655 | 5.1% | 52,385 | 694 | 5.3% |
| Loans | 146,896 | 3,571 | 9.7% | 145,053 | 3,908 | 10.8% | 142,887 | 3,869 | 10.8% |
| Structural | 138,866 | 3,528 | 10.2% | 141,165 | 3,862 | 10.9% | 139,585 | 3,830 | 11.0% |
| Government Programs | 8,031 | 43 | 2.1% | 3,888 | 45 | 4.7% | 3,302 | 39 | 4.7% |
| Total IEA | 222,290 | 4,456 | 8.0% | 223,624 | 4,870 | 8.7% | 225,298 | 4,926 | 8.7% |
| IEA (LC) | 56.9% | 71.2% | 10.0% | 57.6% | 70.5% | 10.7% | 58.0% | 69.9% | 10.5% |
| IEA (FC) | 43.1% | 28.8% | 5.3% | 42.4% | 29.5% | 6.1% | 42.0% | 30.1% | 6.3% |
| Interest Expense / Funding | 1Q23 | 4Q23 | 1Q24 | ||||||
| S/ millions | Average | Expense | Yields | Average | Expense | Yields | Average | Expense | Yields |
| Balance | Balance | Balance | |||||||
| Deposits | 147,822 | 677 | 1.8% | 148,088 | 827 | 2.2% | 147,781 | 780 | 2.1% |
| BCRP + Due to Banks | 20,108 | 239 | 4.8% | 19,925 | 297 | 6.0% | 18,640 | 265 | 5.7% |
| Bonds and Notes | 15,660 | 183 | 4.7% | 14,755 | 153 | 4.1% | 16,068 | 197 | 4.9% |
| Others | 1,091 | 225 | 40.1% | 1,201 | 245 | 41.8% | 1,113 | 259 | 49.1% |
| Total Funding | 185,377 | 1,324 | 2.6% | 185,182 | 1,522 | 3.0% | 185,161 | 1,500 | 3.0% |
| Funding (LC) | 50.5% | 56.6% | 2.9% | 50.2% | 55.9% | 3.3% | 49.5% | 51.9% | 3.0% |
| Funding (FC) | 49.5% | 43.4% | 2.3% | 49.8% | 44.1% | 2.7% | 50.5% | 48.1% | 2.9% |
| NIM | 222,290 | 3,132 | 5.6% | 223,624 | 3,348 | 6.0% | 225,298 | 3,426 | 6.1% |
| NIM (LC) | 56.9% | 77.4% | 7.7% | 57.6% | 77.2% | 8.0% | 58.0% | 77.8% | 8.2% |
| NIM (FC) | 43.1% | 22.6% | 2.9% | 42.4% | 22.8% | 3.2% | 42.0% | 22.2% | 3.2% |
(1) The yield calculation includes "Financial Expense associated with the insurance and reinsurance activity, net"
QoQ Analysis
QoQ, Net Interest Income (NII) increased 2.3%. This evolution was driven by growth in NII in LC while growth in FC dropped over the period. IEAs in LC represented 58% of total IEAs and accounted for 77.8% of Net Interest Income in 1Q24.
| Datos elaborados por BCP para uso Interno | 24 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 04. Net Interest Income (NII) |
Dynamics in Local Currency (LC)
NII in LC rose 3.2% due to the following dynamics:
Average IEA in LC rose 1.5%, driven primarily by Cash and equivalents, followed by Investments, while loan volumes dropped. At the income level, the highest contributor was investments, which were buoyed by attractive yields on BCRP CDs. In contrast, interest income on loans fell due to the negative volume effect generated by a drop in loan volumes at both BCP and Mibanco. In this context, the yield on IEAs in LC fell 10.7% to 10.5%.
On the funding side, the LC balance dropped 1.5% QoQ due to a reduction in average balances for deposits and for BCRP and due to banks. This reduction in the funding cost was driven by a more favorable mix, following the expiration of term deposits and debt obligations that had been assumed at relatively high rates. In this context, the funding cost in LC fell from 3.3% to 3.0%.
Dynamics in Foreign Currency (FC)
NII in FC dropped 0.5% QoQ due to the following dynamics:
Average IEA in FC dropped 0.3% QoQ due to a reduction in loan volumes (-2.3%), which was driven primarily by a decrease in the balances of loans in Wholesale Banking and Mibanco. This was partially offset by an increase in Cash and equivalents after BCP moved to capitalize on liquidity surpluses in a context marked by a decrease in lending. Accordingly, despite the drop in the average balance of IEAs in FC, interest income rose 3.2% QoQ and the IEA yield increased from 6.1% to 6.3%.
Average funding in FC rose 1.4% QoQ, which was driven primarily by growth in the average balances for bonds and issued notes and to a lesser degree, in deposits. The increase in the balance of bonds and notes, which was fueled by a bond issuance at BCP, led to a more expensive funding mix, which was reflected in the increase in interest expenses (+7.5%). This translated into a higher cost of funding in FC, which rose from 2.7% to 2.9%.
YoY Analysis
YoY, NII increased 6.6%, driven by upticks in NII in LC and FC:
Dynamics in local currency (LC)
NII in LC rose 4.5% YoY due to the following dynamics:
Average IEA in LC increased 3.4%. This evolution was driven primarily by investments and secondarily by Cash and equivalents, while loans dropped. Despite volume dynamics, loans were the highest contributor to growth in interest in LC due to a positive mix effect, where retail loans registered a higher share of total loans while the share of wholesale loans fell. Investments also contributed to growth in interest income, albeit to a lesser extent, through an increase in the position in government bonds in 2023. In this scenario, IEA in LC increased 49 bps YoY to 10.5%.
Average funding in LC dropped 2.1% YoY, fueled by a reduction in debt balances in BCRP and due to banks and correspondents. This evolution was driven by a reduction in the BCRP repurchase agreements balance after i) positions in these instruments were not renewed in a context marked by an upswing in demand and higher rates, and ii) the remaining balance associated to GP loans expired. The aforementioned was partially offset by an increase in the average balances for issuance, after BCP's bond issuance, and deposits; both increases were similar in magnitude. These dynamics led interest expenses to rise 3.9%, driven by an uptick in the cost of the funding mix following the BCP issuance and by the fact that growth in deposits was concentrated in term deposits over the last 12 months. In this context, the funding cost rose 17 bps.
Foreign Currency Dynamics (FC)
NII in FE increased 7.6% YoY due to the following dynamics:
Average IEA in FC dropped 1.4% YoY, which was driven primarily by a contraction in Cash and equivalents funds and secondarily, by a decrease in loans. Notwithstanding, growth in rates in dollars over the period made it possible to renew part of the loan portfolio
| Datos elaborados por BCP para uso Interno | 25 |
| | | Earnings Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 04. Net Interest Income (NII) |
at higher rates. Income from Cash and equivalents was also bolstered by higher rates over the year, which offset the negative volume effect. In this context, the yield on IEAs in FC rose from 5.3% to 6.3%.
Average funding in FC increased 1.9% YoY, driven primarily by an uptick in the balance of obligations with BCRP and due to banks and correspondents. Notwithstanding, interest expenses rose 25.5%, fueled mainly by more expensive deposits, which reflected an increase in the share of term deposits within the mix. In this scenario, the funding cost increased 58 bps YoY.
| Datos elaborados por BCP para uso Interno | 26 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
05 Portfolio Quality and Provisions
|
QoQ, growth in NPLs was driven primarily by Individuals and Wholesale Banking at BCP Stand-alone, and secondarily by Mibanco; this was partially offset by a drop in SME-Pyme at BCP Stand-Alone. Provisions fell QoQ after provisions set aside for the impact of the "El Niño" Phenomenon in 4Q23 were reversed. If we isolate this effect, provisions rose, driven mainly by (i) Mortgage, due to a base effect; (ii) SME-Pyme, due to an increase in write-offs and a deterioration in the payment capacity of clients in a context marked by gradual economic recovery; and (iii) Mibanco, due to a further deterioration of old vintages. The NPL ratio stood at 6.2% at quarter-end. YoY, the uptick in NPLs was fueled mainly by Individuals and SME-Pyme at BCP Stand-Alone, followed by Mibanco. YoY, if we isolate the "El Niño" effect, provisions rose, fueled primarily by (i) SME-Pyme and Credit Cards due to further deterioration in payment capacities and (ii) Consumer, due to an uptick in deterioration in the payment performance of vulnerable clients. |
| 5.1 | Portfolio Quality |
Total Portfolio Quality (in Quarter-end balances)
| Loan Portfolio quality and Delinquency ratios | As of | % change | |||
|
'S/000 |
|
|
|
QoQ |
YoY |
| Total loans (Quarter-end balance) | 145,165,713 | 144,976,051 | 140,798,083 | -2.9% | -3.0% |
| Write-offs | 677,148 | 879,401 | 950,433 | 8.1% | 40.4% |
| Internal overdue loans (IOLs) | 5,789,497 | 6,126,487 | 6,205,024 | 1.3% | 7.2% |
| Internal overdue loans over 90-days | 4,270,131 | 4,681,343 | 4,702,733 | 0.5% | 10.1% |
| Refinanced Loans | 2,121,068 | 2,406,058 | 2,557,749 | 6.3% | 20.6% |
| Non-performing loans (NPLs) | 7,910,565 | 8,532,545 | 8,762,773 | 2.7% | 10.8% |
| IOL ratio | 4.0% | 4.2% | 4.4% | 18 bps | 42 bps |
| IOL over 90-days ratio | 2.9% | 3.2% | 3.3% | 11 bps | 40 bps |
| NPL ratio | 5.4% | 5.9% | 6.2% | 34 bps | 77 bps |
QoQ, the NPL portfolio increased 2.7%. This growth was led by Individuals and Wholesale Banking and partially offset by a contraction in SME-Pyme at BCP Stand-alone, followed by Mibanco. Write-offs remained high, registering an increase of 8.1%, and were concentrated primarily in SME-Pyme, Consumer and Credit Cards, which continue to write off overdue loans in higher risk segments.
QoQ, at BCP Stand-Alone, growth in NPLs occurs particularly through: (i) Consumer, due to an uptick in refinancing to assist clients in the most vulnerable segments, who are highly leveraged and lack stable employment; this was partially offset by an increase in write-offs; (ii) Mortgage, due to an increase in overdue loans held by clients that registered delinquency for consumer products; (iii) Wholesale, due to refinancing for a corporate client. The aforementioned was partially offset by (iv) SME-Pyme, which was impacted by a contraction in loan volumes via an increase in honoring processes for Government loans. If we exclude this effect, the NPL portfolio increases due to growth in refinancing to contain rising delinquency (for clients with good long-term payment potential) and to an increase in overdue loans, which was concentrated in older vintages. At Mibanco, the increase in NPLs was driven by an uptick in delinquency in old vintages related to clients affected by macroeconomic, social and environmental impacts in 2023.
YoY, the NPL portfolio increased 10.8%, led by Individuals and SME-Pyme at BCP Stand-Alone, followed by Mibanco. Growth in write-offs (+40.4%) was driven by Credit Cards, Consumer and SME-Pyme, which were impacted by an increase in write-offs of overdue loans in the highest risk segment.
YoY, at BCP Stand-Alone, growth in NPLs occurs particularly through (i) Consumer, due to the dynamics described for the QoQ evolution, coupled with an uptick in overdue loans in old vintages; (ii) Mortgage, due to the dynamics described for the QoQ evolution and among clients that had received refinancing in 2023; (iii) SME-Pyme, due to an uptick in overdue loans, which was concentrated in older vintages, partially offset by an increase in honoring programs for Government Loans. At Mibanco, growth in NPLs was driven by the same dynamics described for the QoQ evolution.
| Datos elaborados por BCP para uso Interno | 27 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
|
05. Provisions |
NPL Ratio of Total Loans
At
If we analyze QoQ evolution of NPL ratio by subsidiary, we have:
● BCP Stand-Alone, where the NPL ratio rose 35 bps. In the case of Business Clients, growth in the NPL ratio was primarily driven by a contraction in loans; while in Individuals, growth in the NPL was fueled mainly by an increase in NPLs.
● Mibanco, where the NPL ratio increased 39 bps, driven primarily by growth in NPLs and secondarily by a contraction in loans.
NPL Ratio of Total Loans at BCP (1)
At
If we analyze YoY evolution of NPL ratio by subsidiary, we have:
● BCP Stand-Alone, where the NPL ratio rose 77 bps. In Individuals and SME-Pyme, growth in NPL ratio is due primarily to an increase in NPLs; while in Wholesale, growth in NPL ratio was due primarily to a contraction in loans.
● Mibanco, where the NPL ratio increased 172 bps, driven by the dynamics described for the QoQ evolution.
5.2 Provisions and Cost of Risk
Provisions and Cost of Risk in the Total Portfolio
| Loan Portfolio Provisions | Quarter | % change | |||
| S/ 000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Gross provision for credit losses on loan portfolio | (802,107) | (1,260,163) | (910,189) | -27.8% | 13.5% |
| Recoveries of written-off loans | 75,109 | 86,709 | 95,490 | 10.1% | 27.1% |
| Provision for credit losses on loan portfolio, net of recoveries | (726,998) | (1,173,454) | (814,699) | -30.6% | 12.1% |
| Cost of risk (1) | 2.0% | 3.2% | 2.3% | -96 bps | 30 bps |
(1) Provisions for credit losses on loan portfolio, net of annualized recoveries / Average Total Loans. Provisions include the impact of the "El Niño" Phenomenon.
This quarter, provisions include a reversal of provisions set aside in 4Q23 for anticipated impacts for the "El Niño" Phenomenon for approximately S/ 250 million. In this context, the Cost of Risk (CoR) stood at 2.3%. Next, we will explain the quarterly and yearly dynamics for provisions by isolating this impact.
QoQ, provisions rose 16.0%, driven primarily by (i) Mortgage, due to a base effect for reversals for specific subproducts; (ii) SME- Pyme, via growth in write-offs that was not 100% provisioned and due to a deterioration in the payment capacities of clients in a context of gradual economic recovery; this was partially offset by growth in amortization of Government Loans (GP); (iii) Mibanco, due to further deterioration in old vintages.
In this scenario, if we isolate the "El Niño" effect, the Cost of Risk (CoR) rose 45 bps QoQ to stand at 3.0%.
| Datos elaborados por BCP para uso Interno | 28 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
|
05. Provisions |
YoY, provisions rose 46.9%, driven by SME-Pyme and Credit Cards, which were impacted by a deterioration in the payment capacity of highly leveraged clients and by Consumer, which was affected by deterioration in the payment performance of clients in the most vulnerable segments who are highly leveraged.
The aforementioned growth in provisions was partially offset by a decrease in provisions in Wholesale Banking and Mibanco. At Mibanco, provisions were down due to a base effect given that in 1Q23, more provisions were required for climatic and social events.
In this scenario, if we isolate the "El Niño" effect, the CoR rose 101 bps YoY to stand at 3.0%.
Cost of Risk by Subsidiary (1)
(1) It includes the impact of the "El Niño" Phenomenon.
| QoQ Cost of Risk Evolution | YoY Cost of Risk Evolution | |
| (1) Others include BCP Bolivia, Mibanco Colombia, ASB and eliminations. | (1) Others include BCP Bolivia, Mibanco Colombia, ASB and eliminations. |
Coverage Ratio of NPLs (in Quarter-end balances)
| Loan Portfolio Quality and Delinquency Ratios | As of | % change | |||
| S/ 000 | QoQ | YoY | |||
| Total loans (Quarter-end balance) | 145,165,713 | 144,976,051 | 140,798,083 | -2.9% | -3.0% |
| Allowance for loan losses | 7,915,350 | 8,277,916 | 8,190,343 | -1.1% | 3.5% |
| Non-performing loans (NPLs) | 7,910,565 | 8,532,545 | 8,762,773 | 2.7% | 10.8% |
| Allowance for loan losses over Total loans | 5.5% | 5.7% | 5.8% | 11 bps | 37 bps |
| Coverage ratio of NPLs | 100.1% | 97.0% | 93.5% | -355 bps | -659 bps |
Allowance for loan losses
(in S/ millions)
(1) Others include Mibanco Colombia, ASB and eliminations
QoQ, the balance of accumulated provisions dropped 1.1%, driven primarily by the reversal of provisions for the "El Niño" effect in 1Q24.
YoY, the balance of accumulated provisions rose 3.5%, driven primarily by Individuals and SME-Pyme at BCP Stand-Alone.
| Datos elaborados por BCP para uso Interno | 29 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
|
05. Provisions |
Coverage Ratio of NPL
(1) It excludes GP Loans.
The NPL Coverage Ratio stood at 93.5% at quarter-end. The impact of Government Programs Portfolio on this ratio is -368 bps.
QoQ
The NPL Coverage Ratio at
QoQ, NPL Coverage Ratio at BCP Stand-Alone, excluding Government Programs, fell 488 bps and stood at 95.0%. This evolution is driven mainly by:
| ● | Business Clients: |
| ○ | Wholesale: due to refinancing of a specific client, who was already in stage 3 and therefore did not require additional provision this quarter. The Wholesale Portfolio stage 3 is 85% collateralized1. |
| ● | Individuals: contracted slightly, primarily driven by an increase in refinancing in Consumer and growth in the overdue portfolio in Credit Cards. The coverage levels for both products are approximately 162%. |
YoY
the NPL Coverage Ratio at
YoY, the NPL Coverage Ratio at BCP Stand-alone, excluding Government Programs, contracted 10 pps, due to the following dynamics:
| ● | Business Clients: |
| ○ | Wholesale: due to the dynamics described for the QoQ evolution, coupled with a contraction in the allowance for loan losses given that exposure to loan default fell over the past year. |
| ● | Individuals: primarily driven by an increase in NPLs in Consumer, Credit Cards and Mortgage. |
YoY, the NPL Coverage Ratio at Mibanco, excluding Government Programs, contracted 45 pps and stood at 99.6%. The contraction in the NPL Coverage Ratio is driven by (i) the calibration of risk models to clarify the client's payment behavior, an adjustment made in 2Q23; (ii) growth of the loan portfolio in lower risk segments, where the level of expected losses was significantly lower than the figure seen one year ago.
1 To calculate the collateralized percentage of the portfolio, value of collateral considers the present value of the minimum between the realizable value, the lien value and the commercial value; adjusted for recoveries.
| Datos elaborados por BCP para uso Interno | 30 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
06. Other Income
|
Other Core Income, whose evolution has been positively affected by our operation in BCP Bolivia. If we exclude the effects of these operations, Other core income rose 1.3% QoQ. This growth was concentrated in (i) BCP, in Credit Cards which registered growth through the e-commerce channel and by an increase in transactions through Yape; and (ii) Prima, due to growth in the volume of payroll contributions. YoY, the growth of 8.5% was driven by an increase in net fee income, which was led by BCP, primarily via Yape, and by QoQ, Other Non-core Income fell. This reflects a drop in the Gain on securities, which was due to a devaluation of the trading portfolio at BCP and a downgrade in Pacífco's local fixed income portfolio. YoY, growth in Other Non-Core Income was in line with higher derivative income at |
6.1. Other Core Income
| Other Core Income | Quarter | % Change | |||
| S/ (000) | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Fee Income | 881,781 | 986,173 | 1,062,501 | 7.7% | 20.5% |
| 248,515 | 218,047 | 166,269 | -23.7% | -33.1% | |
| Total Other Income | 1,130,296 | 1,204,220 | 1,228,770 | 2.0% | 8.7% |
It is important to note that, since 2023, Other Core Income has been affected by our operation in BCP Bolivia, which has adapted its fee structure for foreign transfers to offset the losses reported for FX sale-purchase transactions.
If we exclude income from the aforementioned transactions, other recurring income rose 1.3% and 8.5% QoQ and YoY respectively. This growth was fueled primarily by growth in net fee income.
Net Fee Income by Subsidiary
| Net Fee Income by Subsidiary | Quarter | % Change | |||
| (S/ 000) | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| BCP Stand-Alone | 698,207 | 748,270 | 771,463 | 3.1% | 10.5% |
| BCP Bolivia | 50,134 | 104,959 | 153,969 | 46.7% | 207.1% |
| Mibanco | 28,691 | 24,402 | 24,173 | -0.9% | -15.7% |
| Mibanco Colombia | 9,074 | 10,082 | 11,250 | 11.6% | 24.0% |
| Pacífico | -3,131 | -2,577 | -3,199 | 24.1% | 2.2% |
| Prima | 89,496 | 87,457 | 94,528 | 8.1% | 5.6% |
| ASB | 15,254 | 10,704 | 17,062 | 59.4% | 11.9% |
| 107,158 | 137,092 | 128,148 | -6.5% | 19.6% | |
| Eliminations and Other (1) | -113,102 | -134,216 | -134,893 | 0.5% | 19.3% |
| Total Net Fee Income | 881,781 | 986,173 | 1,062,501 | 7.7% | 20.5% |
(1) Correspond mainly to the eliminations of Bancasseguros between Pacífico, BCP, and Mibanco
If we exclude fee income from BCP Bolivia, Net fee income was driven by the following dynamics:
QoQ, Net fee income rose 3.1%, spurred primarily by growth in the fee level at BCP Stand-alone, which we will discuss in the next chapter, and secondarily by Prima, which reported an uptick in payroll contributions. This quarter, net Fee Income growth was offset by a drop in fee income
YoY, the 9.2% increase in Net fee income was mainly attributable to growth in fee income at BCP Stand-alone, which we will discuss in the next chapter, and by the increase reported by
| Datos elaborados por BCP para uso Interno | 31 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
|
06. Other Income |
BCP Stand-alone Net Fee Income
Composition of fee income in BCP Stand-alone(*)
| BCP Stand-alone Fees | Quarterly | % Change | |||
| (S/ 000,000) | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Payments and transactionals (1) | 321.1 | 319.6 | 340.0 | 6.4% | 5.9% |
| Yape | -11.5 | 44.5 | 55.3 | 24.1% | n.a. |
| Liability accounts (2) | 178.0 | 185.6 | 178.1 | -4.0% | 0.1% |
| Loan Disbursement (3) | 95.2 | 96.6 | 90.1 | -6.7% | -5.4% |
| Off-balance sheet | 61.7 | 56.5 | 57.3 | 1.4% | -7.1% |
| Insurances | 31.1 | 31.3 | 33.1 | 5.6% | 6.3% |
| ASB | 9.8 | 4.9 | 9.5 | 91.5% | -3.2% |
| Others (4) | 12.9 | 9.2 | 8.1 | -11.6% | -37.1% |
| Total | 698.2 | 748.2 | 771.5 | 3.1% | 10.5% |
(*) This table corresponds to management numbers.
(1) Corresponds to fees from credit and debit cards; payments and collections. It is not comparable with the same line of previous reports given the change in details.
(2) Corresponds to fees from Account maintenance, interbank transfers, national money orders, and international transfers.
(3) Corresponds to fees from retail and wholesale loan disbursements.
(4) Use of third-party networks, other services to third parties, and Commissions in foreign branches.
QoQ, Net fee income rose 1.3%, driven mainly by growth in the fee volume generated by:
| ● | Payments and services, which registered growth through an uptick in transactions via (i) an increase in fees generated by credit cards which reflecs the change in the channel mix as customers transact more in e-commerce; (ii) growth in billing for debit cards (+2.4%). |
| ● | Yape, where income growth was led by bill payments, followed by merchant fees and mobile top-ups. |
YoY, Net fee income grew 10.5%, spurred primarily by growth in total fees received through:
| ● | Yape, where income growth was led by bill payments, followed by the merchant fee and mobile top-ups. |
| ● | Payments and services, which reported growth on the back of higher transactionality via (i) higher billing through credit cards (+8.7%); and (ii) growth in billing through debit cards (+23.2%). |
6.2 Other Non-Core Income
| Other Non-Core Income | Quarter | % Change | |||
|
S/ (000) |
1Q23 |
4Q23 |
1Q24 |
QoQ |
YoY |
| 70,036 | 115,825 | 61,745 | -46.7% | -11.8% | |
| Net Gain from associates (1) | 27,212 | 34,132 | 32,295 | -5.4% | 18.7% |
| Net Gain of derivatives held for trading | -6,570 | 5,019 | 39,984 | 696.7% | -708.6% |
| Net Gain from exchange differences | 22,963 | 15,255 | -5,621 | -136.8% | -124.5% |
| Other non-operative income | 89,338 | 112,372 | 102,221 | -9.0% | 14.4% |
| Total Other Non-Core Income | 202,979 | 282,603 | 230,624 | -18.4% | 13.6% |
(1) Includes gains on other investments, which are mainly attributable to the
| Datos elaborados por BCP para uso Interno | 32 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
|
06. Other Income |
| Other Non-Core Income QoQ evolution (Thousand of soles) |
Other Non-Core Income YoY evolution (Thousand of soles) |
(1) Others includes: Grupo Crédito, Credicorp Stand-alone, eliminations and others.
QoQ, Other Non-Core Income fell, primarily due to a drop in the Gain on Securities, which reflected the devaluation of the trading portfolio at BCP Stand-alone and a downgrade within Pacífico's local fixed income portfolio.
YoY, Other Non-Core Income rose due to growth in the Gain on Derivatives, which reflects the gains generated by
| Datos elaborados por BCP para uso Interno | 33 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
07. Insurance Underwriting Results
|
QoQ, the Insurance Underwriting Result dropped 2.9%. This evolution was driven primarily by a decrease in the underwriting result for Life, which was partially offset by and improvement in P & C's result. In Life, the underwriting result was impacted by a drop in Insurance Service Income from the D & S lines and Credit Life. The uptick in P & C's result, in turn, was primarily attributableto a drop in expenses and an increase in insurance service income in P & C Risks. YoY, the Insurance Underwriting Result dropped 5.8%. This result was driven by a decrease in the underwriting result for Life, which was partially offset by an improvement in the result at P & C. In the Life business, the decrease in the underwriting result was mainly fueled by a drop in Insurance Service Income from the D & S lines. The uptick recorded for P & C's result reflected both a drop in claims in P& C Risks as well as growth in direct premiums across all businesses. |
| Insurance Underwriting Results | Quarterly | % Change | ||||
| S/ 000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Total | Income from Insurance Services | 956.6 | 1,019.6 | 937.9 | -8.0% | -2.0% |
| Expenses for Insurance Services | (545.2) | (634.0) | (476.2) | -24.9% | -12.6% | |
| Insurance Service Result | 411.5 | 385.7 | 461.7 | 19.7% | 12.2% | |
| Reinsurance Results | (115.1) | (98.4) | (182.6) | 85.7% | 58.7% | |
| Insurance Undewrwriting Result | 296.3 | 287.3 | 279.1 | -2.9% | -5.8% | |
| P&C | Income from Insurance Services | 413.9 | 449.8 | 468.4 | 4.1% | 13.2% |
| Expenses for Insurance Services | (286.1) | (323.7) | (237.9) | -26.5% | -16.8% | |
| Insurance Service Result | 127.8 | 126.1 | 230.5 | 82.8% | 80.3% | |
| Reinsurance Results | (83.9) | (76.8) | (152.7) | 98.9% | 81.9% | |
| Insurance Undewrwriting Result | 43.9 | 49.3 | 77.8 | 57.7% | 77.1% | |
| Life | Income from Insurance Services | 521.9 | 534.8 | 438.1 | -18.1% | -16.0% |
| Expenses for Insurance Services | (257.3) | (305.1) | (232.0) | -24.0% | -9.8% | |
| Insurance Service Result | 264.6 | 229.7 | 206.1 | -10.3% | -22.1% | |
| Reinsurance Results | (27.2) | (14.5) | (24.3) | 67.7% | -10.6% | |
| Insurance Undewrwriting Result | 237.4 | 215.2 | 181.8 | -15.5% | -23.4% | |
| Crediseguros | Income from Insurance Services | 20.9 | 37.1 | 34.4 | -7.4% | 64.9% |
| Expenses for Insurance Services | (1.9) | (11.5) | (11.5) | 0.6% | 522.2% | |
| Insurance Service Result | 19.0 | 25.6 | 22.8 | -10.9% | 20.2% | |
| Reinsurance Results | (4.0) | (9.1) | (8.5) | -6.9% | 111.4% | |
| Insurance Undewrwriting Result | 15.0 | 16.5 | 14.4 | -13.2% | -4.2% |
QoQ, the Insurance Underwriting Result dropped 2.9%. This evolution was spurred primarily by a deterioration in the Total Reinsurance Result (+85.7%) and secondarily by a decrease in the Life Insurance Service Result (-10.3%). The aforementioned was partially offset by an improvement in the P & C Service Result (+82.8%).
YoY, the Insurance Underwriting Result fell 5.8%, driven mainly by a deterioration in the Total Reinsurance Result (+62.4%) and secondarily by a drop in the Life Insurance Service Result (-20.9%). The aforementioned was partially offset by an improvement in the P & C Service Result (+78.3%).
| Income from Insurance Services | Expenses for Insurance Services | |
| Datos elaborados por BCP para uso Interno | 34 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 07. Insurance Underwriting Results |
QoQ, the Insurance Underwriting Result rose 57.7% due to the following dynamics:
| ● | Income from Insurance Services increased 4.1%, due primarily to (i) P & C Risks and (ii) Cars, both of which were impacted by an increase in releases for Reserves for Current Risks, which were set aside in previous quarters. |
| ● | Insurance Service Expenses fell 26.5%, which reflected a drop in expenses for claims in P & C Risks, including releases of reserves associated with El Niño. |
| ● | The deterioration reported for the Reinsurance Result was driven mainly by a drop in Reinsurance Recoveries. |
YoY, the Insurance Underwriting Result rose 62.1% due to the following dynamics:
| ● | Insurance Service Income increased 12.8%, driven primarily by (i) P & C Risks, via an uptick in direct premiums and (ii) Cars, due to an increase in sales through Yape and bancassurance. |
| ● | Insurance Service Expenses dropped 16.8%, which was driven primarily by P & C Risks via a drop in expenses for claims, including releases of reserves associated with El Niño. |
| ● | The deterioration in the Reinsurance Result was spurred mainly by the evolution of P & C Risks due to (i) a drop in Reinsurance Recoveries, and (ii) growth in the level of Ceded Premiums. |
Life Insurance
| Income from Insurance Services | Expenses for Insurance Services | |
QoQ, the Insurance Underwriting Result dropped 15.5% due to the following dynamics:
| ● | Insurance Service Income fell 18.1%, due primarily to (i) D & S due to a drop in the rates offered and in the portion won of the SISCO VII contract in comparison to the conditions and tranches obtained through SISCO VI and (ii) Credit Life, due to a drop in income associated with direct premiums from bancassurance. |
| ● | Insurance Service Expenses dropped 24.0%, driven mainly by D & S, which registered a decrease in claims frequency and a release of IBNR reserves after parameters were updated. |
| ● | The deterioration in the Reinsurance Result was fueled primarily by a decrease in Reinsurance Recoveries associated with D & S and Group Life. |
YoY, the Insurance Underwriting Result fell 22.1% due to the following dynamics:
| ● | Insurance Service Income dropped 15.4%. This decline was primarily driven by (i) D & S, driven by the same factors seen in the QoQ analysis, and to a lesser extent, by Individual Life and Credit Life. |
| ● | Insurance Service Expenses decreased 9.8% due to D & S, which reported a decrease in claims. |
| ● | The deterioration in the Reinsurance Result fell slightly due to a drop in ceded premiums in D & S. |
| Datos elaborados por BCP para uso Interno | 35 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
08 Operating Expenses
|
Operating expenses rose 6.9% YoY, driven primarily by core businesses at BCP Stand-alone and disruptive initiatives at the |
Total operating expenses
| Operating expenses | Quarter | % change | |||
| S/ 000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Salaries and employees benefits | 1,029,558 | 1,119,758 | 1,107,069 | -1.1% | 7.5% |
| Administrative, general and tax expenses | 835,060 | 1,089,203 | 888,583 | -18.4% | 6.4% |
| Depreciation and amortization | 161,079 | 177,618 | 175,146 | -1.4% | 8.7% |
| Association in participation | 12,612 | 9,109 | 8,847 | -2.9% | -29.9% |
| Operating expenses | 2,038,309 | 2,395,688 | 2,179,645 | -9.0% | 6.9% |
Our analysis of expenses focuses on year-over-year movements to eliminate the effects of seasonality between quarters.
Operating expenses rose 6.9% YoY due to:
| ● | An increase in Salaries and Employee benefits, which was driven primarily by growth in the headcount for personnel that specializes in disruption and IT. |
| ● | Growth in Administrative and general expenses and taxes, mainly at BCP and via an increase in transactionality (primarily through digital channels), which led to an increase in cloud use and other system-related expenses. |
Administrative and general expenses
| Administrative and general expenses | Quarter | % change | |||
| S/ 000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| IT expenses and IT third-party services | 240,932 | 311,417 | 282,905 | -9.2% | 17.4% |
| Advertising and customer loyalty programs | 135,767 | 239,028 | 124,569 | -47.9% | -8.2% |
| Taxes and contributions | 85,073 | 93,090 | 92,887 | -0.2% | 9.2% |
| Audit Services, Consulting and professional fees | 51,878 | 105,340 | 58,992 | -44.0% | 13.7% |
| Transport and communications | 51,036 | 60,869 | 54,064 | -11.2% | 5.9% |
| Repair and maintenance | 25,790 | 49,698 | 32,638 | -34.3% | 26.6% |
| Agents' Fees | 26,152 | 31,911 | 30,465 | -4.5% | 16.5% |
| Services by third-party | 27,511 | 43,936 | 28,415 | -35.3% | 3.3% |
| Leases of low value and short-term | 25,116 | 30,205 | 27,388 | -9.3% | 9.0% |
| Miscellaneous supplies | 32,993 | 30,589 | 18,653 | -39.0% | -43.5% |
| Security and protection | 15,789 | 16,575 | 17,172 | 3.6% | 8.8% |
| Subscriptions and quotes | 13,086 | 18,444 | 15,903 | -13.8% | 21.5% |
| Electricity and water | 11,497 | 16,316 | 11,736 | -28.1% | 2.1% |
| Electronic processing | 8,730 | 11,284 | 7,748 | -31.3% | -11.2% |
| Insurance | 8,750 | 4,518 | 5,744 | 27.1% | -34.4% |
| Cleaning | 5,162 | 6,122 | 5,172 | -15.5% | 0.2% |
| Others | 69,798 | 19,861 | 74,132 | 273.3% | 6.2% |
| Total | 835,060 | 1,089,203 | 888,583 | -18.4% | 6.4% |
Administrative and general expenses rose 6.4% YoY, driven primarily by higher expenses for IT and system outsourcing at BCP as well as disruptive initiatives at the
| Datos elaborados por BCP para uso Interno | 36 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 08. Operating Expenses |
Operating expenses for Core Businesses and Disruption (1)
| Operating Expenses | Quarter | % change | |||
|
S/ 000 |
1Q23 |
4Q23 |
1Q24 |
QoQ |
YoY |
| Core Business BCP | 1,149,281 | 1,359,738 | 1,203,361 | -11.5% | 4.7% |
| Core Business Mibanco | 297,780 | 299,717 | 304,389 | 1.6% | 2.2% |
| Core Business Pacifico | 64,268 | 85,485 | 76,174 | -10.9% | 18.5% |
| Disruption (2) | 186,416 | 331,673 | 245,757 | -25.9% | 31.8% |
| Others (3) | 340,564 | 319,075 | 349,964 | 9.7% | 2.8% |
| Total | 2,038,309 | 2,395,688 | 2,179,645 | -9.0% | 6.9% |
(1) Management figures.
(2) Includes disruptive initiatives at the subsidiaries and Krealo.
(3)
The 6.9% YTD increase reported for operating expenses at
Disruption expenses represented 11.3% of total expenses and rose 31.8% in 1Q24. These expenses are mainly associated with disruptive initiatives such as Yape, where growth in transactions and new product development led to higher IT-related expenses. In 1Q24, Yape and Tenpo were the largest contributors to expenses and 60% of the total expenses for disruptive initiatives.
Growth in the core business at BCP corresponds to:
| ● | Technology expenses (IT) |
| ● | More personnel with specialized digital capacities were hired; the average salary paid to these personnel also rose. |
| ● | An uptick in the transaction volume of increasingly digitalized clients led to an increase in the expenses associated with server use. Total monetary transactions, and transactions via digital channels, grew 96.6% and 130.5% respectively. |
| ● | Core business expenses excluding IT |
| ● | Higher compensation expense due to hiring more personnel compared to 1Q23. |
| Datos elaborados por BCP para uso Interno | 37 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
09 Operating Efficiency
| The efficiency ratio improved by 70 bps YoY, driven by the fact that growth in income outstripped the increase registered for expenses. This evolution was in line with an increase in core income, which was driven by a rise in net interest income. NII rose due to an improvement in the loan mix via growth in Individuals and SME loans. |
Efficiency ratio (1) reported by subsidiary
| Subsidiary |
Quarter |
% change |
|||
|
1Q23 |
4Q23 |
1Q24 |
QoQ |
YoY |
|
| BCP | 36.8% | 41.8% | 36.2% | -560 bps | -60 bps |
| BCP Bolivia | 60.2% | 59.0% | 58.1% | -90 bps | -210 bps |
| Mibanco Peru | 54.1% | 52.9% | 53.3% | 40 bps | -80 bps |
| Mibanco Colombia | 93.2% | 98.2% | 85.5% | -1270 bps | -770 bps |
| Pacifico | 21.7% | 34.9% | 27.7% | -720 bps | 600 bps |
| 49.6% | 54.2% | 50.4% | -380 bps | 80 bps | |
| 44.3% | 49.0% | 43.6% | -537 bps | -70 bps |
(1) Operating expenses / Operating income (under IFRS 17). Operating expenses = Salaries and employees benefits + Administrative expenses + Depreciation and amortization
YoY movements will be considered in the analysis to eliminate seasonal effects between quarters.
The efficiency ratio improved this quarter. This evolution was led by an increase in core income at BCP, which was attributable to a shift in the mix toward a higher percentage of Retail Loans and to the fact that expenses remained under control.
| Datos elaborados por BCP para uso Interno | 38 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
10
|
Credicorp´s The IFRS CET1 at BCP Stand-alone dropped 7 bps YoY to stand at 11.86%; this reflected an increase in RWAS, which rose hand-in-hand with loan growth. This was partially offset by an improvement in Retained Earnings. The IFRS CET1 at Mibanco decreased 32 bps YoY and stood at 16.06%. The reduction in Retained Earnings YoY (-144.5%) offset the drop in RWAs (-5.4%). |
10.1
Capital analysis of
In 2022, the Superintendency of Banking, Insurance, and AFP (SBS) established the legal bases to align the country's regulato ry framework with the capital standards set by Basel III. The entity issued resolutions that modified both the structure and composition of regulatory capital and capital requirements for companies in the financial system. Most of these changes were implemented beginning in 2023. For more details, we suggest you refer to our 1Q23 Quarterly Report.
In 2024, with the objective is to continue aligning local regulation with Basel III, the SBS modified the structure and composition of
Two minimum capital requirements have been included: minimum required for Common Equity Tier 1 Capital (CET 1) and minimum Tier 1
| ● | Minimum required for CET 1: 45% of |
| ● | Minimum required for Tier 1: 60% of |
Regarding Credifcorp, CET 1 stood 2.01 times above the minimum required. Tier 1, in turn, stood 1.65 times above the established minimum. Finally,
Capital Coverage Ratios
1 Includes Accumulated Earnings solely from Financial Entities Supervised by the SBS, according to the current regulation.
2 Includes Unrealized Losses attributable to Available-For-Sale Investments in debt instruments issued by the Peruvian Government, other Governments with Investment Grade Ratings, the
| Datos elaborados por BCP para uso Interno | 39 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 10. |
10.2 Analysis of Capital at BCP Stand-alone
|
The IFRS CET 1 ratio at BCP Stand-alone dropped 135 bps QoQ to close 1Q24 at 11.86%, which remains above our internal appetite of 11%. The decline this quarter was attributable to a decrease in the balance of Retained Earnings, which was impacted by the declaration of dividend. The RWA level fell 1.3% due to a contraction in the loan portfolio. YoY, the IFRS CET 1 ratio decreased by 7 bps, which was attributable to an increase in RWAs. Finally, under the parameters of current regulation, the Regulatory Global Capital Ratio stood at 16.12% (-134 bps QoQ). This ratio compares favorably with the minimum of 12.57% required by the regulatory as of |
The local CET 1 ratio stood at 11.72%, which compares favorably with the 6.68% minimum required as of
10.3 Analysis of Capital at Mibanco
|
As of 1Q24, IFRS CET 1 at Mibanco stood at 16.06% (-231 bps TaT), while our internal appetite stands at 15%. This drop was driven primarily by a decrease in Retained Earnings, which were impacted by dividend payments. RWA levels fell 1.1% due to a contraction in the loan portfolio. YoY, this ratio fell 32 bps due to the same dynamics explained in the QoQ analysis. The Regulatory Global Capital Ratio at Mibanco stood at a very comfortable 18.03% (-73 bps QoQ), while the minimum required by the regulator was 12.80%. This variation was fueled by the same dynamics that spurred the evolution of the IFRS CET 1 Ratio. The local CET 1 ratio stood at 15.69%, versus the 6.68% minimum required as of |
| Datos elaborados por BCP para uso Interno | 40 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
11 Economic Outlook
|
In 1Q24, the Peruvian economy would have grown around 1.5% YoY, the first positive record after four consecutive quarters of declines. In the primary sectors, the dynamism of the mining sector stood out, while non-primary sectors grew around 2.0% YoY, driven by services, commerce and construction. The annual inflation rate continued its slowdown , closing the quarter at 3.0% YoY (3.2% YoY in 4Q23). As such, the BCRP remained cutting rates; it lowered it by 25 bps in January, February and April to 6.00%. According to the BCRP, the exchange rate closed at USDPEN 3.72 in 1Q24, a variation of -0.2% compared to the close of 4Q23 and 1.2% compared to a year ago. |
Peru: Economic Forecast
| Peru | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (4) |
| GDP (US$ Millions) | 226,919 | 232,519 | 205,933 | 226,140 | 245,209 | 268,027 | 282,325 |
| Real GDP (% change) | 4.0 | 2.2 | -10.9 | 13.4 | 2.7 | -0.6 | 3.0 |
| GDP per capita (US$) | 7,190 | 7,237 | 6,312 | 6,845 | 7,342 | 8,026 | 8,279 |
| Domestic demand (% change) | 4.1 | 2.2 | -9.6 | 14.5 | 2.3 | -1.7 | 3.0 |
| Gross fixed investment (as % GDP) | 22.2 | 22.5 | 21.0 | 25.1 | 25.3 | 22.9 | 23.2 |
| Financial system loan without Reactiva (% change) (1) | 10.3 | 6.4 | -4.3 | 12.6 | 9.7 | 2.8 | 4.5 |
| Inflation, end of period(2) | 2.2 | 1.9 | 2.0 | 6.4 | 8.5 | 3.2 | 2.5 |
| Reference Rate, end of period | 2.75 | 2.25 | 0.25 | 2.50 | 7.50 | 6.75 | 5.00 |
| Exchange rate, end of period | 3.37 | 3.31 | 3.62 | 3.99 | 3.81 | 3.71 | 3.75 |
| Exchange rate, (% change) (3) | -4.0% | 1.8% | -9.3% | -10.3% | 4.5% | 2.7% | -1.2% |
| Fiscal balance (% GDP) | -2.3 | -1.6 | -8.9 | -2.5 | -1.7 | -2.8 | -2.5 |
| Public Debt (as % GDP) | 25.6 | 26.6 | 34.6 | 35.9 | 33.8 | 32.9 | 33.0 |
| Trade balance (US$ Millions) | 7,201 | 6,879 | 8,102 | 14,977 | 10,333 | 17,401 | 16,500 |
| (As % GDP) | 3.2% | 3.0% | 3.9% | 6.6% | 4.2% | 6.5% | 5.8% |
| Exports | 49,066 | 47,980 | 42,826 | 62,967 | 66,235 | 67,241 | 69,000 |
| Imports | 41,866 | 41,101 | 34,724 | 47,990 | 55,902 | 49,840 | 52,500 |
| Current account balance (As % GDP) | -1.2% | -0.6% | 1.1% | -2.2% | -4.0% | 0.6% | -0.5% |
| Net international reserves (US$ Millions) | 60,121 | 68,316 | 74,707 | 78,495 | 71,883 | 71,033 | 74,000 |
| (As % GDP) | 26.5% | 29.4% | 36.3% | 34.7% | 29.3% | 26.5% | 26.2% |
| (As months of imports) | 17 | 20 | 26 | 20 | 15 | 17 | 17 |
Sources: INEI, BCRP y SBS.
(1) Financial System, Current Exchange Rate
(2) Inflation target: 1% - 3%
(3) Negative % change indicates depreciation.
(4) Grey area indicate estimates by
| Datos elaborados por BCP para uso Interno | 41 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 11. Economic Outlook |
Main Macroeconomic Variables
Gross Domestic Product
(Annual Real Variations, % YoY)
Source: BCRP
Estimate: BCP
In 1Q24, the Peruvian economy is expected to have expanded around 1.5% YoY, its first positive reading after four consecutive quarters of contraction. Among the primary sectors, the dynamism of the mining sector stood out. Non-primary activities grew around 2.0% YoY, its fastest pace in five quarters, fueled mainly by services, commerce, and construction.
On
Annual Inflation and Central Bank Reference Rate
(%)
Source: BCRP and INEI
Inflation, measured using the Consumer Price index of
At its March meeting, the BCRP surprised markets by keeping its rate stable at 6.25% after six consecutive cuts of 25 bps. each. In April, it resumed rate cuts and reduced the rate by 25 bps to 6.00%. BCRP began its monetary policy easing cycle in
| Datos elaborados por BCP para uso Interno | 42 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 11. Economic Outlook |
Fiscal Balance and Current Account Balance
(% of GDP, Quarter)
The annualized fiscal deficit for the last 12 months to
In
Regarding external accounts, the 12-month accumulated trade balance surplus to
In
Terms of trade grew 2.5% YoY in
Exchange Rate
(PEN per USD)
According to BCRP, the exchange rate closed 1Q24 at USDPEN 3.72, stable year-to-date but with high volatility within the quarter. During mid-February, the exchange rate weakened to USDPEN 3.88. That month, the BCRP intervened in the spot market selling
Latam main currencies registered mixed movements in 1Q24. The Mexican peso appreciated 2.4%, the Colombian peso remained stable (+0.4%) and the Chilean peso and Brazilian real depreciated 11.3% and 3.3%, respectively.
Net international reserves closed 1Q24 at
| Datos elaborados por BCP para uso Interno | 43 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| Safe Harbor for Forward-Looking Statements |
This material includes "forward-looking statements" within the meaning of Section 27A of the
Many forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "goal", "seek", "believe", "project", "estimate", "expect", "strategy", "future", "likely", "would", "may", "should", "will", "see" and similar references to future periods. Examples of forward-looking statements include, among others, statements or estimates we make regarding guidance relating to losses in our credit portfolio, efficiency ratio, provisions and non-performing loans, current or future market risk and future market conditions, expected macroeconomic events and conditions, our belief that we have sufficient capital and liquidity to fund our business operations, expectations of the effect on our financial condition of claims, legal actions, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings, strategy for customer retention, growth, governmental programs and regulatory initiatives, credit administration, product development, market position, financial results and reserves and strategy for risk management.
We caution readers that forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those that we expect or that are expressed or implied in the forward-looking statements, depending on the outcome of certain factors, including, without limitation, adverse changes in:
● The occurrence of natural disasters or political or social instability in
● The adequacy of the dividends that our subsidiaries are able to pay to us, which may affect our ability to pay dividends to shareholders and corporate expenses;
● Performance of, and volatility in, financial markets, including Latin-American and other markets;
● The frequency, severity and types of insured loss events;
● Fluctuations in interest rate levels;
● Foreign currency exchange rates, including the Sol/US Dollar exchange rate;
● Deterioration in the quality of our loan portfolio;
● Increasing levels of competition in
● Developments and changes in laws and regulations affecting the financial sector and adoption of new international guidelines;
● Changes in the policies of central banks and/or foreign governments;
● Effectiveness of our risk management policies and of our operational and security systems;
● Losses associated with counterparty exposures;
● The scope of the coronavirus ("COVID-19") outbreak, actions taken to contain the COVID-19 and related economic effects from such actions and our ability to maintain adequate staffing; and
● Changes in
See "Item 3. Key Information-3. D Risk Factors" and "Item 5. Operating and Financial Review and Prospects" in our most recent Annual Report on Form 20-F filed with the
We undertake no obligation to publicly update or revise these or any other forward-looking statements that may be made to reflect events or circumstances after the date hereof, whether as a result of changes in our business strategy or new information, to reflect the occurrence of unanticipated events or otherwise.
| Datos elaborados por BCP para uso Interno | 44 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
12 Appendix
| 12.2. | 46 | ||
| 12.3. | Loan Portfolio Quality | 46 | |
| 12.4 | Net Interest Income (NII) | 50 |
| 12.5. | 51 | ||
| 12.6. | Financial Statements and Ratios by Business | 55 |
| 12.6.1. | Credicorp Consolidated | 55 | |
| 12.6.2. | Credicorp Stand-alone | 57 | |
| 12.6.3. | BCP Consolidated | 58 | |
| 12.6.4. | BCP Stand-alone | 60 | |
| 12.6.5. | BCP Bolivia | 62 | |
| 12.6.6. | Mibanco | 63 | |
| 12.6.7. | 64 | ||
| 12.6.8. | Grupo Pacifico | 65 | |
| 12.6.9. | Investment Management and Advisory | 67 |
| 12.7. | Table of Calculations | 68 | |
| 12.8. | Glossary of terms | 69 |
| Datos elaborados por BCP para uso Interno | 45 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.1.
(Units) |
As of | change (units) | |||
| QoQ | YoY | ||||
| Branches | 665 | 659 | 655 | -4 | -10 |
| ATMs | 2,626 | 2,746 | 2,737 | -9 | 111 |
| Agentes | 11,589 | 12,410 | 11,697 | -713 | 108 |
| Total | 14,880 | 15,815 | 15,089 | -726 | 209 |
| (1) | Includes |
| (2) |
Includes
|
12.2. Loan Portfolio Quality
Portfolio Quality Ratios by Segment
Wholesale Banking
SME-Business
| Datos elaborados por BCP para uso Interno | 46 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
SME-Pyme
Mortgage
| Datos elaborados por BCP para uso Interno | 47 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Consumer
Credit Card
| Datos elaborados por BCP para uso Interno | 48 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Mibanco
BCP Bolivia
| Datos elaborados por BCP para uso Interno | 49 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.3. Net Interest Income (NII)
NII Summary
| Net interest income | Quarter | % change | |||
| S/ 000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Interest income | 4,456,106 | 4,870,042 | 4,925,926 | 1.1% | 10.5% |
| Interest on loans | 3,570,952 | 3,907,705 | 3,868,792 | -1.0% | 8.3% |
| Dividends on investments | 6,477 | 11,647 | 10,861 | -6.7% | 67.7% |
| Interest on deposits with banks | 277,371 | 279,446 | 334,459 | 19.7% | 20.6% |
| Interest on securities | 585,268 | 643,737 | 683,075 | 6.1% | 16.7% |
| Other interest income | 16,038 | 27,507 | 28,739 | 4.5% | 79.2% |
| Interest expense | (1,324,017) | (1,522,358) | (1,499,803) | -1.5% | 13.3% |
| Interest expense (excluding Net Insurance Financial Expenses) | (1,208,267) | (1,402,925) | (1,377,799) | -1.8% | 14.0% |
| Interest on deposits | 677,088 | 827,124 | 779,526 | -5.8% | 15.1% |
| Interest on borrowed funds | 238,933 | 297,260 | 264,884 | -10.9% | 10.9% |
| Interest on bonds and subordinated notes | 182,898 | 152,960 | 196,630 | 28.5% | 7.5% |
| Other interest expense | 109,348 | 125,581 | 136,759 | 8.9% | 25.1% |
| Net Insurance Financial Expenses | (115,750) | (119,433) | (122,004) | 2.2% | 5.4% |
| Net interest income | 3,132,089 | 3,347,684 | 3,426,123 | 2.3% | 9.4% |
| Risk-adjusted Net interest income | 2,405,091 | 2,174,230 | 2,611,424 | 20.1% | 8.6% |
| Average interest earning assets | 222,289,504 | 223,624,217 | 225,297,538 | 0.7% | 1.4% |
| Net interest margin (1) | 5.84% | 6.20% | 6.30% | 10bps | 46bps |
| Risk-adjusted Net interest margin (1) | 4.54% | 4.10% | 4.85% | 75bps | 31bps |
| Net provisions for loan losses / Net interest income | 23.21% | 35.05% | 23.78% | -1127bps | 57bps |
(1) Annualized. For further detail on the new NIM calculation due to IFRS17, please refer to Annex 12.1.7
Net Interest Margin (NIM) and Risk Adjusted NIM by Subsidiary
| NIM Breakdown | BCP Stand-alone | Mibanco | BCP Bolivia | |
| 1Q23 | 5.55% | 12.52% | 2.86% | 5.84% |
| 4Q23 | 5.99% | 13.35% | 2.87% | 6.20% |
| 1Q24 | 6.04% | 13.42% | 2.96% | 6.30% |
NIM: Annualized Net interest income (excluding Net Insurance Financial Expenses) / Average period end and period beginning interest-earning assets.
| Risk Adjusted NIM Breakdown | BCP Stand-alone | Mibanco | BCP Bolivia | |
| 1Q23 | 4.42% | 7.03% | 2.74% | 4.54% |
| 4Q23 | 3.96% | 8.17% | 1.93% | 4.10% |
| 1Q24 | 4.64% | 9.71% | 2.46% | 4.85% |
Risk-Adjusted NIM: (Annualized Net interest income (excluding Net Insurance Financial Expenses) - annualized provisions) / Average period end and period beginning interest-earning assets.
| Datos elaborados por BCP para uso Interno | 50 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.5.
(S/ Thousands, IFRS)
| As of | |
| S/000 | |
| Capital Stock | 1,318,993 |
| Treasury Stocks | (208,343) |
| Capital Surplus | 201,965 |
| 26,213,432 | |
| Minority interest | 522,309 |
| Current and Accumulated Earnings (1) | 2,639,560 |
| Unrealized Gains or Losses (2) | (991,283) |
| (768,869) | |
| Intangible Assets (3) | (1,945,983) |
| Deductions in Common Equity Tier 1 instruments (4) | (73,914) |
| Perpetual subordinated debt | - |
| Subordinated Debt | 5,733,691 |
| Loan loss reserves (5) | 1,946,564 |
| Deductions in Tier 2 instruments (6) | (946,825) |
| 33,641,297 | |
| Total Regulatory Common Equity Tier 1 Capital (B) | 26,907,867 |
| Total Regulatory Tier 1 Capital (C) | 26,907,867 |
| Total Regulatory Capital Requirement (D) | 25,855,046 |
| Total Regulatory Common Equity Tier 1 Capital Requirement (E) | 13,330,425 |
| Total Regulatory Tier 1 Capital Requirement (F) | 16,309,166 |
| Regulatory Capital Ratio (A) / (D) | 1.30 |
| Regulatory Common Equity Tier 1 Capital Ratio (B) / (E) | 2.02 |
| Regulatory Tier 1 Capital Ratio (C) / (F) | 1.65 |
|
(1)
|
Legal and other capital reserves include restricted capital reserves (PEN 14,745 million) and optional capital reserves (PEN 6,661 million).
|
|
(2)
|
Minority interest includes Tier I (PEN 421 million)
|
|
(3)
|
Up to 1.25% of total risk-weighted assets of
|
|
(4)
|
Tier II + Tier III cannot be more than 50% of total regulatory capital.
|
|
(5)
|
Tier I = capital + restricted capital reserves + Tier I minority interest - goodwill - (0.5 x investment in equity and subordinated debt of financial and insurance companies) + perpetual subordinated debt.
|
|
(6)
|
Tier II = subordinated debt + Tier II minority interest tier + loan loss reserves - (0.5 x investment in equity and subordinated debt of financial and insurance companies).
|
|
(7)
|
Tier III = Subordinated debt covering market risk only.
|
|
(8)
|
Includes regulatory capital requirements of the financial consolidated group.
|
|
(9)
|
Includes regulatory capital requirements of the insurance consolidated group.
|
|
(10)
|
|
| Datos elaborados por BCP para uso Interno | 51 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Regulatory and Capital Adequacy Ratios at BCP Stand-alone
(S/ thousands, IFRS)
| Quarter | Change % | ||||
| (S/ thousand) | QoQ | YoY | |||
| Capital Stock | 12,973,175 | 12,973,175 | 12,973,175 | 0.0% | 0.0% |
| Reserves | 7,038,881 | 6,590,921 | 6,590,921 | 0.0% | -6.4% |
| Accumulated earnings | 2,050,746 | 5,383,865 | 2,644,894 | -50.9% | 29.0% |
| Loan loss reserves (1) | 1,634,876 | 1,695,577 | 1,662,636 | -1.9% | 1.7% |
| Perpetual subordinated debt | - | - | - | n.a | n.a |
| Subordinated Debt | 5,078,700 | 5,007,150 | 5,019,300 | 0.2% | -1.2% |
| Unrealized Profit or Losses | (1,046,284) | (668,717) | (691,921) | 3.5% | -33.9% |
| Investment in subsidiaries and others, net of unrealized profit and net income in subsidiaries | (2,613,563) | (2,772,786) | (2,416,070) | -12.9% | -7.6% |
| Intangibles | (934,718) | (1,294,279) | (1,209,735) | -6.5% | 29.4% |
| (122,083) | (122,083) | (122,083) | 0.0% | 0.0% | |
| 24,059,729 | 26,792,823 | 24,451,116 | -8.7% | 1.6% | |
| Tier 1 Common Equity (2) | 17,346,153 | 20,090,096 | 17,769,180 | -11.6% | 2.4% |
| Regulatory Tier 1 Capital (3) | 17,346,153 | 20,090,096 | 17,769,180 | -11.6% | 2.4% |
| Regulatory Tier 2 Capital (4) | 6,713,576 | 6,702,727 | 6,681,936 | -0.3% | -0.5% |
| Total risk-weighted assets | Quarter | Change % | |||
| (S/ thousand) | QoQ | YoY | |||
| Market risk-weighted assets (5) | 1,715,934 | 2,680,010 | 3,032,546 | 13.2% | 76.7% |
| Credit risk-weighted assets | 129,623,885 | 134,427,146 | 131,793,619 | -2.0% | 1.7% |
| Operational risk-weighted assets | 14,880,988 | 16,365,974 | 16,842,059 | 2.9% | 13.2% |
| Total | 146,220,807 | 153,473,130 | 151,668,224 | -1.2% | 3.7% |
| Capital requirement | Quarter | Change % | |||
| (S/ thousand) | QoQ | YoY | |||
| Market risk capital requirement (5) | 171,589 | 268,001 | 303,255 | 13.2% | 76.7% |
| Credit risk capital requirement | 11,018,030 | 12,098,443 | 11,861,426 | -2.0% | 7.7% |
| Operational risk capital requirement | 1,488,062 | 1,636,597 | 1,684,206 | 2.9% | 13.2% |
| Additional capital requirements | 3,534,427 | 5,383,837 | 5,418,896 | 0.7% | 53.3% |
| Total | 16,212,108 | 19,386,878 | 19,267,782 | -0.6% | 18.8% |
Capital Ratios under Local Regulation
| Capital ratios under Local Regulation | Quarter | % Change | |||
| (S/. thousand) | QoQ | YoY | |||
| Common Equity Tier 1 ratio | 11.86% | 13.09% | 11.72% | -137 bps | -15 bps |
| Tier 1 Capital ratio | 11.86% | 13.09% | 11.72% | -137 bps | -15 bps |
| 16.45% | 17.46% | 16.12% | -134 bps | -33 bps |
| [1] Up to 1.25% of total risk-weighted assets. |
| [2] Common Equity Tier 1 = Capital Stock + Reserves + Accumulated earnings - Unrealized profits or losses - 100% deductions (investment in subsidiaries, goodwill, intangible assets and deferred tax assets based on future returns). |
| [3] Regulatory Tier 1 Capital = Common Equity Tier 1 + Tier 1 Subordinated Debt (Perpetual). |
| [4] Regulatory Tier 2 Capital = Subordinated Debt + Loan loss reserves. |
| Datos elaborados por BCP para uso Interno | 52 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
(S/ thousands, IFRS)
| Quarter | % Change | ||||
| (S/ thousand) | QoQ | YoY | |||
| Capital Stock | 1,840,606 | 1,840,606 | 1,840,606 | 0.0% | 0.0% |
| Reserves | 308,056 | 308,056 | 334,650 | 8.6% | 8.6% |
| Accumulated earnings | 556,972 | 717,919 | 310,119 | -56.8% | -44.3% |
| Loan loss reserves | 168,965 | 157,368 | 154,452 | -1.9% | -8.6% |
| Perpetual subordinated debt | - | - | - | n.a | n.a. |
| Subordinated debt | 179,000 | 173,000 | 173,000 | 0.0% | -3.4% |
| Unrealidez Profit or Losses | (15,467) | (1,695) | (4,984) | 194.1% | -67.8% |
| Investment in subsidiaries and others, net of unrealized profit and net income in subsidiaries | (281) | (282) | (283) | 0.4% | 1.0% |
| Intangibles | (135,202) | (156,884) | (150,274) | -4.2% | 11.1% |
| (139,180) | (139,180) | (139,180) | 0.0% | 0.0% | |
| 2,763,469 | 2,898,907 | 2,518,105 | -13.1% | -8.9% | |
| Tier Common Equity (2) | 2,415,504 | 2,568,539 | 2,190,653 | -14.7% | -9.3% |
| Regulatory Tier 1 Capital (3) | 2,415,504 | 2,568,539 | 2,190,653 | -14.7% | -9.3% |
| Regulatory Tier 2 Capital (4) | 347,965 | 330,368 | 327,452 | -0.9% | -5.9% |
| Total risk-weighted assets | Quarter | % change | |||
| (S/ thousand) | QoQ | YoY | |||
| Market risk-weighted assets | 141,441 | 220,327 | 252,255 | 14.5% | 78.3% |
| Credit risk-weighted assets | 13,160,337 | 12,349,400 | 12,151,596 | -1.6% | -7.7% |
| Operational risk-weighted assets | 1,427,428 | 1,527,140 | 1,559,737 | 2.1% | 9.3% |
| Total | 14,729,206 | 14,096,867 | 13,963,589 | -0.9% | -5.2% |
| Capital requirement | Quarter | % change | |||
| (S/ thousand) | QoQ | YoY | |||
| Market risk capital requirement (5) | 14,144 | 22,033 | 25,226 | 14.5% | 78.3% |
| Credit risk capital requirement | 1,316,034 | 1,111,446 | 1,093,644 | -1.6% | -16.9% |
| Operational risk capital requirement | 142,743 | 152,714 | 155,974 | 2.1% | 9.3% |
| Additional capital requirements | 398,603 | 568,059 | 164,047 | -71.1% | -58.8% |
| Total | 1,871,523 | 1,854,252 | 1,438,889 | -22.4% | -23.1% |
Capital Ratios under Local Regulation
| Capital ratios under Local Regulation | Quarter | % change | |||
| QoQ | YoY | ||||
| Common Equity Tier 1 Ratio | 16.40% | 18.22% | 15.69% | -253 bps | -71 pbs |
| Tier 1 Capital ratio | 16.40% | 18.22% | 15.69% | -253 bps | -71 pbs |
| Regulatory Global Capital Ratio | 18.76% | 20.56% | 18.03% | -253 bps | -73 pbs |
| [1] Up to 1.25% of total risk-weighted assets. |
| [2] Common Equity Tier 1 = Capital Stock + Reserves + Accumulated earnings - Unrealized profits or losses - 100% deductions (investment in subsidiaries, goodwill, intangible assets and deferred tax assets based on future returns). |
| [3] Regulatory Tier 1 Capital = Common Equity Tier 1 + Tier 1 Subordinated Debt (Perpetual). |
| [4] Regulatory Tier 2 Capital = Subordinated Debt + Loan loss reserves. |
| Datos elaborados por BCP para uso Interno | 53 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Common Equity Tier 1 IFRS
BCP Stand-alone
| Common Equity Tier 1 IFRS | Quarter | % Change | |||
| (S/. thousand) | QoQ | YoY | |||
| Capital and reserves | 19,499,813 | 19,051,853 | 19,051,853 | 0.0% | -2.3% |
| Retained earnings | 2,746,522 | 6,058,923 | 3,429,163 | -43.4% | 24.9% |
| Unrealized gains (losses) | (467,041) | (109,202) | (161,369) | 47.8% | -65.4% |
| (1,454,205) | (1,670,116) | (1,650,626) | -1.2% | 13.5% | |
| Investments in subsidiaries | (2,736,368) | (2,917,670) | (2,570,974) | -11.9% | -6.0% |
| Total | 17,588,721 | 20,413,787 | 18,098,046 | -11.3% | 2.9% |
| Adjusted RWAs IFRS | 147,477,433 | 154,627,042 | 152,645,988 | -1.3% | 3.5% |
| Adjusted Credit RWAs IFRS | 130,880,511 | 135,581,058 | 132,771,383 | -2.1% | 1.4% |
| Others | 16,596,922 | 19,045,984 | 19,874,605 | 4.4% | 19.7% |
| CET1 ratio IFRS | 11.93% | 13.20% | 11.86% | -135 bps | -7 bps |
Mibanco
| Common Equity Tier 1 IFRS | Quarter | % Change | |||
| (S/. thousand) | QoQ | YoY | |||
| Capital and reserves | 2,676,791 | 2,676,791 | 2,703,385 | 1.0% | 1.0% |
| Retained earnings | 140,612 | 321,235 | (62,632) | -119.5% | -144.5% |
| Unrealized gains (losses) | (16,118) | (1,403) | (8,967) | 538.9% | -44.4% |
| (342,684) | (360,171) | (352,162) | -2.2% | 2.8% | |
| Investments in subsidiaries | (281) | (271) | (275) | 1.8% | -1.9% |
| Total | 2,458,321 | 2,636,182 | 2,279,349 | -13.5% | -7.3% |
| Adjusted RWAs IFRS | 15,005,498 | 14,349,534 | 14,188,737 | -1.1% | -5.4% |
| Adjusted Credit RWAs IFRS | 15,005,498 | 12,595,184 | 12,366,207 | -1.8% | -17.6% |
| Others | - | 1,754,350 | 1,822,530 | 3.9% | n.a. |
| CET1 ratio IFRS | 16.38% | 18.37% | 16.06% | -231 bps | -32 bps |
| Datos elaborados por BCP para uso Interno | 54 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6. Financial Statements and Ratios by Business
12.6.1. Credicorp Consolidated
Consolidated Statement of Financial Position
(In S/ thousands, IFRS)
| As of | % change | ||||
| QoQ | YoY | ||||
| ASSETS | |||||
| Cash and due from banks | |||||
| Non-interest bearing | 6,946,112 | 7,952,371 | 8,024,262 | 0.9% | 15.5% |
| Interest bearing | 28,158,941 | 25,978,577 | 31,134,572 | 19.8% | 10.6% |
| Total cash and due from banks | 35,105,053 | 33,930,948 | 39,158,834 | 15.4% | 11.5% |
| Cash collateral, reverse repurchase agreements and securities borrowing | 1,468,180 | 1,410,647 | 1,526,232 | 8.2% | 4.0% |
| Fair value through profit or loss investments | 4,080,266 | 4,982,661 | 4,448,122 | -10.7% | 9.0% |
| Fair value through other comprehensive income investments | 33,395,987 | 37,043,940 | 38,047,888 | 2.7% | 13.9% |
| Amortized cost investments | 10,253,251 | 10,188,927 | 10,059,376 | -1.3% | -1.9% |
| Loans | 145,165,713 | 144,976,051 | 140,798,083 | -2.9% | -3.0% |
| Current | 139,376,216 | 138,849,564 | 134,593,059 | -3.1% | -3.4% |
| Internal overdue loans | 5,789,497 | 6,126,487 | 6,205,024 | 1.3% | 7.2% |
| Less - allowance for loan losses | (7,915,350) | (8,277,916) | (8,190,343) | -1.1% | 3.5% |
| Loans, net | 137,250,363 | 136,698,135 | 132,607,740 | -3.0% | -3.4% |
| Financial assets designated at fair value through profit or loss | 795,225 | 810,932 | 868,239 | 7.1% | 9.2% |
| Property, plant and equipment, net | 1,786,992 | 1,857,240 | 1,815,570 | -2.2% | 1.6% |
| Due from customers on acceptances | 496,170 | 412,401 | 322,346 | -21.8% | -35.0% |
| Investments in associates | 660,741 | 748,663 | 691,908 | -7.6% | 4.7% |
| Intangible assets and goodwill, net | 2,942,367 | 3,225,499 | 3,161,382 | -2.0% | 7.4% |
| Reinsurance contract assets | 804,958 | 872,046 | 957,474 | 9.8% | 18.9% |
| Other assets (1) | 8,112,749 | 6,658,149 | 7,506,630 | 12.7% | -7.5% |
| Total Assets | 237,152,302 | 238,840,188 | 241,171,741 | 1.0% | 1.7% |
| LIABILITIES AND EQUITY | |||||
| Deposits and obligations | |||||
| Non-interest bearing | 41,596,964 | 42,234,498 | 41,706,139 | -1.3% | 0.3% |
| Interest bearing | 107,026,336 | 105,470,496 | 106,150,988 | 0.6% | -0.8% |
| Total deposits and obligations | 148,623,300 | 147,704,994 | 147,857,127 | 0.1% | -0.5% |
| Payables from repurchase agreements and securities lending | 11,686,495 | 10,168,427 | 9,491,276 | -6.7% | -18.8% |
| BCRP instruments | 9,780,540 | 7,461,674 | 6,854,368 | -8.1% | -29.9% |
| Repurchase agreements with third parties | 1,206,574 | 1,134,886 | 1,092,031 | -3.8% | -9.5% |
| Repurchase agreements with customers | 699,381 | 1,571,867 | 1,544,877 | -1.7% | 120.9% |
| Due to banks and correspondents | 10,199,650 | 12,278,681 | 10,684,673 | -13.0% | 4.8% |
| Bonds and notes issued | 14,326,930 | 14,594,785 | 17,541,121 | 20.2% | 22.4% |
| Banker's acceptances outstanding | 496,170 | 412,401 | 322,346 | -21.8% | -35.0% |
| Insurance contract liability | 11,448,674 | 12,318,133 | 12,343,975 | 0.2% | 7.8% |
| Financial liabilities at fair value through profit or loss | 417,146 | 641,915 | 309,228 | -51.8% | -25.9% |
| Other liabilities | 9,019,443 | 7,613,787 | 8,185,785 | 7.5% | -9.2% |
| Total Liabilities | 206,217,808 | 205,733,123 | 206,735,531 | 0.5% | 0.3% |
| Net equity | 30,359,898 | 32,460,004 | 33,853,460 | 4.3% | 11.5% |
| Capital stock | 1,318,993 | 1,318,993 | 1,318,993 | 0.0% | 0.0% |
| (208,041) | (208,033) | (208,343) | 0.1% | 0.1% | |
| Capital surplus | 226,189 | 228,239 | 201,965 | -11.5% | -10.7% |
| Reserves | 23,603,001 | 26,252,578 | 26,213,432 | -0.1% | 11.1% |
| Other reserves | (244,725) | 295,783 | 243,405 | -17.7% | -199.5% |
| Retained earnings | 5,664,481 | 4,572,444 | 6,084,008 | 33.1% | 7.4% |
| Non-controlling interest | 574,596 | 647,061 | 582,750 | -9.9% | 1.4% |
| Total Net Equity | 30,934,494 | 33,107,065 | 34,436,210 | 4.0% | 11.3% |
| Total liabilities and equity | 237,152,302 | 238,840,188 | 241,171,741 | 1.0% | 1.7% |
| Off-balance sheet | 154,477,055 | 149,769,480 | 162,365,717 | 8.4% | 5.1% |
| Total performance bonds, stand-by and L/Cs. | 18,731,789 | 20,051,616 | 20,466,103 | 2.1% | 9.3% |
| Undrawn credit lines, advised but not committed | 87,232,214 | 87,091,701 | 88,546,531 | 1.7% | 1.5% |
| Total derivatives (notional) and others | 48,513,052 | 42,626,163 | 53,353,083 | 25.2% | 10.0% |
| (1) Includes mainly accounts receivables from brokerage and others. |
| * Due to reclassifications, the Balance Sheet may differ from those reported in previous quarters. |
| Datos elaborados por BCP para uso Interno | 55 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Consolidated Statement of Income
(In S/ thousands, IFRS)
| As of | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Interest income and expense | |||||
| Interest and similar income | 4,456,106 | 4,870,042 | 4,925,926 | 1.1% | 10.5% |
| Interest and similar expenses | (1,324,017) | (1,522,358) | (1,499,803) | -1.5% | 13.3% |
| Net interest, similar income and expenses | 3,132,089 | 3,347,684 | 3,426,123 | 2.3% | 9.4% |
| - | - | - | 0.0% | 0.0% | |
| Gross provision for credit losses on loan portfolio | (802,107) | (1,260,163) | (910,189) | -27.8% | 13.5% |
| Recoveries of written-off loans | 75,109 | 86,709 | 95,490 | 10.1% | 27.1% |
| Provision for credit losses on loan portfolio, net of recoveries | (726,998) | (1,173,454) | (814,699) | -30.6% | 12.1% |
| - | - | - | 0.0% | 0.0% | |
| Net interest, similar income and expenses, after provision for credit losses on loan portfolio | 2,405,091 | 2,174,230 | 2,611,424 | 20.1% | 8.6% |
| Other income | |||||
| Fee income | 881,781 | 986,173 | 1,062,501 | 7.7% | 20.5% |
| Net gain on foreign exchange transactions | 248,515 | 218,047 | 166,269 | -23.7% | -33.1% |
| Net loss on securities | 70,036 | 115,825 | 61,745 | -46.7% | -11.8% |
| Net gain from associates | 27,212 | 34,132 | 32,295 | -5.4% | 18.7% |
| Net gain (loss) on derivatives held for trading | (6,570) | 5,019 | 39,984 | 696.7% | -708.6% |
| Net gain (loss) from exchange differences | 22,963 | 15,255 | (5,621) | -136.8% | -124.5% |
| Others | 89,338 | 112,372 | 102,221 | -9.0% | 14.4% |
| Total other income | 1,333,275 | 1,486,823 | 1,459,394 | -1.8% | 9.5% |
| Insurance underwriting result | |||||
| Insurance Service Result | 406,877 | 385,043 | 458,997 | 19.2% | 12.8% |
| Reinsurance Result | (110,536) | (97,748) | (179,935) | 84.1% | 62.8% |
| Total insurance underwriting result | 296,341 | 287,295 | 279,062 | -2.9% | -5.8% |
| Total expenses | |||||
| Salaries and employee benefits | (1,029,558) | (1,119,758) | (1,107,069) | -1.1% | 7.5% |
| Administrative, general and tax expenses | (835,060) | (1,089,203) | (888,583) | -18.4% | 6.4% |
| Depreciation and amortization | (161,079) | (177,618) | (175,146) | -1.4% | 8.7% |
| Impairment loss on goodwill | - | (71,959) | - | n.a | n.a |
| Association in participation | (12,612) | (9,109) | (8,847) | -2.9% | -29.9% |
| Other expenses | (88,599) | (193,895) | (99,672) | -48.6% | 12.5% |
| Total expenses | (2,126,908) | (2,661,542) | (2,279,317) | -14.4% | 7.2% |
| Profit before income tax | 1,907,799 | 1,286,806 | 2,070,563 | 60.9% | 8.5% |
| Income tax | (493,466) | (434,648) | (528,466) | 21.6% | 7.1% |
| Net profit | 1,414,333 | 852,158 | 1,542,097 | 81.0% | 9.0% |
| Non-controlling interest | 30,060 | 10,331 | 30,440 | 194.6% | 1.3% |
| Net profit attributable to |
1,384,273 | 841,827 | 1,511,657 | 79.6% | 9.2% |
| Datos elaborados por BCP para uso Interno | 56 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.2. Credicorp Stand-alone
Separate Statement of Financial Position
(In S/ thousands, IFRS)
| As of | % change | ||||
| QoQ | YoY | ||||
| ASSETS | |||||
| Cash and cash equivalents | 131,218 | 529,773 | 510,036 | -3.7% | 288.7% |
| At fair value through profit or loss | 949,378 | 501,026 | - | n.a | n.a |
| Fair value through other comprehensive income investments | 318,962 | 1,418,293 | 1,427,450 | 0.6% | 347.5% |
| In subsidiaries and associates investments | 35,207,564 | 36,150,565 | 37,392,797 | 3.4% | 6.2% |
| Held to maturity | - | 166,977 | 640,723 | 283.7% | n.a |
| Other assets | 69,217 | 99 | 294,639 | n.a | 325.7% |
| Total Assets | 36,676,339 | 38,766,733 | 40,265,645 | 3.9% | 9.8% |
| LIABILITIES AND |
|||||
| Due to banks, correspondents and other entities | - | 30,866 | - | n.a | n.a |
| Dividends payable | 1,885,839 | 1,798,858 | 1,816,584 | 1.0% | -3.7% |
| Bonds and notes issued | 267,558 | 255,707 | 296,682 | 16.0% | 10.9% |
| Other liabilities | - | - | - | 0.0% | 0.0% |
| Total Liabilities | 2,153,397 | 2,085,431 | 2,113,266 | 1.3% | -1.9% |
| NET EQUITY | |||||
| Capital stock | 1,318,993 | 1,318,993 | 1,318,993 | 0.0% | 0.0% |
| Capital Surplus | 384,542 | 384,542 | 384,542 | 0.0% | 0.0% |
| Reserve | 23,300,350 | 25,905,526 | 25,910,975 | 0.0% | 11.2% |
| Unrealized results | (592,006) | 68,056 | 17,616 | -74.1% | n.a |
| Retained earnings | 10,111,063 | 9,004,185 | 10,520,253 | 16.8% | 4.0% |
| Total net equity | 34,522,942 | 36,681,302 | 38,152,379 | 4.0% | 10.5% |
| Total Liabilities And Equity | 36,676,339 | 38,766,733 | 40,265,645 | 3.9% | 9.8% |
Statement of Income
(S/ Thousands, IFRS)
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Interest income | |||||
| Net share of the income from investments in subsidiaries and associates | 1,439,211 | 906,901 | 1,557,394 | 71.7% | 8.2% |
| Interest and similar income | 300 | 1,170 | 18,725 | n.a | n.a |
| Net gain on financial assets at fair value through profit or loss | 3,759 | 32,430 | 1,234 | -96.2% | -67.2% |
| Total income | 1,443,270 | 940,501 | 1,577,353 | 67.7% | 9.3% |
| Interest and similar expense | (13,796) | (14,444) | (13,565) | -6.1% | -1.7% |
| Administrative and general expenses | (4,407) | (9,274) | (4,802) | -48.2% | 9.0% |
| Total expenses | (18,203) | (23,718) | (18,367) | -22.6% | 0.9% |
| Operating income | 1,425,067 | 916,783 | 1,558,986 | 70.0% | 9.4% |
| Net gain (losses) from exchange differences | (158) | 510 | 93 | -81.8% | n.a |
| Other, net | 102 | 111 | 111 | 0.0% | 8.8% |
| Profit before income tax | 1,425,011 | 917,404 | 1,559,190 | 70.0% | 9.4% |
| Income tax | (46,795) | (68,500) | (43,104) | -37.1% | -7.9% |
| Net income | 1,378,216 | 848,904 | 1,516,086 | 78.6% | 10.0% |
| Double Leverage Ratio | 102.0% | 98.6% | 98.0% | -50 bps | -400 bps |
| Datos elaborados por BCP para uso Interno | 57 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.3 BCP Consolidated
Condolidated Statement of Financial Position
(S/ thousands, IFRS)
| As of | % change | ||||
| QoQ | YoY | ||||
| ASSETS | |||||
| Cash and due from banks | |||||
| Non-interest bearing | 5,456,302 | 6,025,352 | 5,842,595 | -3.0% | 7.1% |
| Interest bearing | 26,924,509 | 24,668,794 | 30,040,974 | 21.8% | 11.6% |
| Total cash and due from banks | 32,380,811 | 30,694,146 | 35,883,569 | 16.9% | 10.8% |
| Cash collateral, reverse repurchase agreements and securities borrowing | 232,059 | 100,211 | 415,202 | 314.3% | 78.9% |
| Fair value through profit or loss investments | 39,638 | 362,360 | 465,261 | 28.4% | n.a |
| Fair value through other comprehensive income investments | 17,702,831 | 20,592,731 | 21,739,359 | 5.6% | 22.8% |
| Amortized cost investments | 9,661,389 | 9,557,451 | 9,389,695 | -1.8% | -2.8% |
| Loans | 132,290,495 | 131,767,137 | 127,359,955 | -3.3% | -3.7% |
| Current | 126,846,139 | 125,948,604 | 121,494,564 | -3.5% | -4.2% |
| Internal overdue loans | 5,444,356 | 5,818,533 | 5,865,391 | 0.8% | 7.7% |
| Less - allowance for loan losses | (7,450,091) | (7,772,720) | (7,663,849) | -1.4% | 2.9% |
| Loans, net | 124,840,404 | 123,994,417 | 119,696,106 | -3.5% | -4.1% |
| Property, furniture and equipment, net (1) | 1,489,392 | 1,559,485 | 1,512,734 | -3.0% | 1.6% |
| Due from customers on acceptances | 496,170 | 412,401 | 322,346 | -21.8% | -35.0% |
| Investments in associates | 18,246 | 21,426 | 23,270 | 8.6% | 27.5% |
| Other assets (2) | 6,873,005 | 6,510,227 | 6,955,937 | 6.8% | 1.2% |
| Total Assets | 193,733,945 | 193,804,855 | 196,403,479 | 1.3% | 1.4% |
| Liabilities and Equity | |||||
| Deposits and obligations | |||||
| Non-interest bearing (1) | 37,978,204 | 39,377,289 | 38,519,886 | -2.2% | 1.4% |
| Interest bearing (1) | 93,952,305 | 92,931,227 | 94,436,692 | 1.6% | 0.5% |
| Total deposits and obligations | 131,930,509 | 132,308,516 | 132,956,578 | 0.5% | 0.8% |
| Payables from repurchase agreements and securities lending | 10,318,686 | 8,005,844 | 7,388,795 | -7.7% | -28.4% |
| BCRP instruments | 9,780,540 | 7,461,674 | 6,854,368 | -8.1% | -29.9% |
| Repurchase agreements with third parties | 538,146 | 544,170 | 534,427 | -1.8% | -0.7% |
| Due to banks and correspondents | 9,647,935 | 11,870,116 | 10,160,253 | -14.4% | 5.3% |
| Bonds and notes issued | 10,972,861 | 10,961,427 | 13,833,480 | 26.2% | 26.1% |
| Banker's acceptances outstanding | 496,170 | 412,401 | 322,346 | -21.8% | -35.0% |
| Financial liabilities at fair value through profit or loss | 193,031 | 91,966 | - | n.a | n.a. |
| Other liabilities (3) | 8,245,729 | 4,995,178 | 9,283,873 | 85.9% | 12.6% |
| Total Liabilities | 171,804,921 | 168,645,448 | 173,945,325 | 3.1% | 1.2% |
| Net equity | 21,777,751 | 24,998,419 | 22,315,713 | -10.7% | 2.5% |
| Capital stock | 12,679,794 | 12,679,794 | 12,679,794 | 0.0% | 0.0% |
| Reserves | 6,820,019 | 6,372,059 | 6,372,059 | 0.0% | -6.6% |
| Unrealized gains and losses | (467,041) | (108,012) | (159,740) | 47.9% | -65.8% |
| Retained earnings | 2,744,979 | 6,054,578 | 3,423,600 | -43.5% | 24.7% |
| Non-controlling interest | 151,273 | 160,988 | 142,441 | -11.5% | -5.8% |
| Total Net Equity | 21,929,024 | 25,159,407 | 22,458,154 | -10.7% | 2.4% |
| Total liabilities and equity | 193,733,945 | 193,804,855 | 196,403,479 | 1.3% | 1.4% |
| Off-balance sheet | 142,247,161 | 138,140,917 | 151,042,451 | 9.3% | 6.2% |
| Total performance bonds, stand-by and L/Cs. | 17,932,260 | 19,328,506 | 19,720,490 | 2.0% | 10.0% |
| Undrawn credit lines, advised but not committed | 76,157,911 | 76,719,565 | 78,799,124 | 2.7% | 3.5% |
| Total derivatives (notional) and others | 48,156,990 | 42,092,846 | 52,522,837 | 24.8% | 9.1% |
| (1) Right of use asset of lease contracts is included by application of IFRS 16. |
| (2) Mainly includes intangible assets, other accounts receivable and tax credit. |
| (3) Mainly includes other accounts payable. |
| Datos elaborados por BCP para uso Interno | 58 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Consolidated Statement of Income
(S/ thousands, IFRS)
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Interest income and expense | |||||
| Interest and dividend income | 3,902,811 | 4,265,959 | 4,278,901 | 0.3% | 9.6% |
| Interest expense | (994,836) | (1,153,770) | (1,119,658) | -3.0% | 12.5% |
| Net interest income | 2,907,975 | 3,112,189 | 3,159,243 | 1.5% | 8.6% |
| Provision for credit losses on loan portfolio | (782,079) | (1,160,527) | (844,151) | -27.3% | 7.9% |
| Recoveries of written-off loans | 69,694 | 81,398 | 90,798 | 11.5% | 30.3% |
| Provision for credit losses on loan portfolio, net of recoveries | (712,385) | (1,079,129) | (753,353) | -30.2% | 5.8% |
| Risk-adjusted net interest income | 2,195,590 | 2,033,060 | 2,405,890 | 18.3% | 9.6% |
| Non-financial income | |||||
| Fee income | 727,489 | 773,261 | 796,536 | 3.0% | 9.5% |
| Net gain on foreign exchange transactions | 242,570 | 268,615 | 261,882 | -2.5% | 8.0% |
| Net gain (loss) on securities | (2,584) | 10,759 | (10,529) | n.a | 307.5% |
| Net gain (loss) on derivatives held for trading | 22,288 | 21,750 | 17,956 | -17.4% | -19.4% |
| Net gain (loss) from exchange differences | 4,308 | 8,795 | 6,526 | -25.8% | 51.5% |
| Others | 71,277 | 101,244 | 56,936 | -43.8% | -20.1% |
| Total other income | 1,065,348 | 1,184,424 | 1,129,307 | -4.7% | 6.0% |
| Total expenses | |||||
| Salaries and employee benefits | (750,011) | (788,885) | (795,569) | 0.8% | 6.1% |
| Administrative expenses | (645,131) | (874,101) | (696,850) | -20.3% | 8.0% |
| Depreciation and amortization | (134,267) | (146,657) | (142,270) | -3.0% | 6.0% |
| Other expenses | (43,944) | (124,472) | (52,973) | -57.4% | 20.5% |
| Total expenses | (1,573,353) | (1,934,115) | (1,687,662) | -12.7% | 7.3% |
| Profit before income tax | 1,687,585 | 1,283,369 | 1,847,535 | 44.0% | 9.5% |
| Income tax | (422,491) | (327,708) | (462,578) | 41.2% | 9.5% |
| Net profit | 1,265,094 | 955,661 | 1,384,957 | 44.9% | 9.5% |
| Non-controlling interest | (1,112) | (2,670) | (4,630) | 73.4% | 316.4% |
| Net profit attributable to BCP Consolidated | 1,263,982 | 952,991 | 1,380,327 | 44.8% | 9.2% |
Selected Financial Indicators
| Quarter | |||
| 1Q23 | 4Q23 | 1Q24 | |
| Profitability | |||
| ROAA (1)(2) | 2.6% | 2.0% | 2.8% |
| ROAE (1)(2) | 22.5% | 15.5% | 23.3% |
| Net interest margin (1)(2) | 6.22% | 6.67% | 6.71% |
| Risk adjusted NIM (1)(2) | 4.70% | 4.36% | 5.11% |
| Funding Cost (1)(2)(3) | 2.4% | 2.8% | 2.7% |
| Quality of loan portfolio | |||
| IOL ratio | 4.1% | 4.4% | 4.6% |
| NPL ratio | 5.7% | 6.2% | 6.6% |
| Coverage of IOLs | 136.8% | 133.6% | 130.7% |
| Coverage of NPLs | 98.9% | 95.3% | 91.8% |
| Cost of risk (4) | 2.2% | 3.3% | 2.4% |
| Operating efficiency | |||
| Oper. expenses as a percent. of total income - reported (5) | 39.2% | 43.2% | 38.5% |
| Oper. expenses as a percent. of av. tot. assets (1)(2)(5) | 3.2% | 3.7% | 3.4% |
| (1) Ratios are annualized. |
| (2) Averages are determined as the average of period-beginning and period-ending balances. |
|
(3) The funding costs differs from previously reported due to a methodology change in the denominator, which no longer includes the following accounts: acceptances outstanding, reserves for property and casualty claims, reserve for unearned premiums, reinsurance payable and other liabilities. |
| (4) Cost of risk: Annualized provision for loan losses / Total loans. |
|
(5) Total income includes net interest income, fee income, net gain on foreign exchange transactions, result on exchange difference and net gain on derivatives. Operating expenses includes Salaries and social benefits, administrative, general and tax expenses and depreciation and amortization. |
| Datos elaborados por BCP para uso Interno | 59 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.4. BCP Stand-alone
Statement of Financial Position
(S/ thousands, IFRS)
| As of | % change | ||||
| QoQ | YoY | ||||
| ASSETS | |||||
| Cash and due from banks | |||||
| Non-interest bearing | 4,832,635 | 5,236,016 | 5,150,933 | -1.6% | 6.6% |
| Interest bearing | 26,052,997 | 24,554,369 | 29,572,183 | 20.4% | 13.5% |
| Total Cash and due from banks | 30,885,632 | 29,790,385 | 34,723,116 | 16.6% | 12.4% |
| Cash collateral, reverse repurchase agreements and securities borrowing | 232,059 | 100,211 | 415,202 | 314.3% | 78.9% |
| Fair value through profit or loss investments | 39,638 | 362,360 | 465,261 | 28.4% | n.a |
| Fair value through other comprehensive income investments | 16,582,128 | 18,178,514 | 18,996,635 | 4.5% | 14.6% |
| Amortized cost investments | 9,369,229 | 9,415,232 | 9,250,403 | -1.8% | -1.3% |
| Loans | 119,751,399 | 119,425,134 | 115,355,734 | -3.4% | -3.7% |
| Current | 115,009,487 | 114,445,408 | 110,365,981 | -3.6% | -4.0% |
| Internal overdue loans | 4,741,912 | 4,979,726 | 4,989,753 | 0.2% | 5.2% |
| Less - allowance for loan losses | (6,404,541) | (6,764,601) | (6,689,926) | -1.1% | 4.5% |
| Loans, net | 113,346,858 | 112,660,533 | 108,665,808 | -3.5% | -4.1% |
| Property, furniture and equipment, net (1) | 1,238,722 | 1,300,690 | 1,262,342 | -2.9% | 1.9% |
| Due from customers on acceptances | 496,170 | 412,401 | 322,346 | -21.8% | -35.0% |
| Investments in associates | 2,736,368 | 2,917,670 | 2,570,974 | -11.9% | -6.0% |
| Other assets (2) | 6,203,938 | 5,776,165 | 6,647,263 | 15.1% | 7.1% |
| Total Assets | 181,130,742 | 180,914,161 | 183,319,350 | 1.3% | 1.2% |
| Liabilities and Equity | |||||
| Deposits and obligations | |||||
| Non-interest bearing | 37,968,322 | 39,385,047 | 38,529,409 | -2.2% | 1.5% |
| Interest bearing | 84,477,317 | 83,047,645 | 84,392,216 | 1.6% | -0.1% |
| Total deposits and obligations | 122,445,639 | 122,432,692 | 122,921,625 | 0.4% | 0.4% |
| Payables from repurchase agreements and securities lending | 9,578,869 | 7,583,520 | 6,816,019 | -10.1% | -28.8% |
| BCRP instruments | 9,040,723 | 7,039,350 | 6,281,592 | -10.8% | -30.5% |
| Repurchase agreements with third parties | 538,146 | 544,170 | 534,427 | -1.8% | -0.7% |
| Due to banks and correspondents | 8,535,930 | 10,497,414 | 8,830,355 | -15.9% | 3.4% |
| Bonds and notes issued | 10,396,500 | 10,350,260 | 13,316,718 | 28.7% | 28.1% |
| Banker's acceptances outstanding | 496,170 | 412,401 | 322,346 | -21.8% | -35.0% |
| Financial liabilities at fair value through profit or loss | 193,031 | 91,966 | - | n.a | n.a |
| Other liabilities (3) | 7,705,309 | 4,544,335 | 8,792,640 | 93.5% | 14.1% |
| Total Liabilities | 159,351,448 | 155,912,588 | 160,999,703 | 3.3% | 1.0% |
| Net equity | 21,779,294 | 25,001,573 | 22,319,647 | -10.7% | 2.5% |
| Capital stock | 12,679,794 | 12,679,794 | 12,679,794 | 0.0% | 0.0% |
| Reserves | 6,820,019 | 6,372,059 | 6,372,059 | 0.0% | -6.6% |
| Unrealized gains and losses | (467,041) | (109,202) | (161,369) | 47.8% | -65.4% |
| Retained earnings | 2,746,522 | 6,058,922 | 3,429,163 | -43.4% | 24.9% |
| - | - | - | n.a | n.a | |
| Total Net Equity | 21,779,294 | 25,001,573 | 22,319,647 | -10.7% | 2.5% |
| Total liabilities and equity | 181,130,742 | 180,914,161 | 183,319,350 | 1.3% | 1.2% |
| Off-balance sheet | 138,810,501 | 134,844,989 | 147,001,354 | 9.0% | 5.9% |
| Total performance bonds, stand-by and L/Cs. | 17,932,454 | 19,328,506 | 19,720,490 | 2.0% | 10.0% |
| Undrawn credit lines, advised but not committed | 73,838,085 | 74,091,027 | 75,957,799 | 2.5% | 2.9% |
| Total derivatives (notional) and others | 47,039,962 | 41,425,456 | 51,323,065 | 23.9% | 9.1% |
|
(1) Right of use asset of lease contracts is included by application of IFRS 16. |
| (2) Mainly includes intangible assets, other receivable accounts, trading derivatives receivable accounts and tax credit. |
| (3) Mainly includes other payable accounts, trading derivatives payable accounts and taxes for payable. |
| Datos elaborados por BCP para uso Interno | 60 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Statement of Income
(S/ thousands, IFRS)
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Interest income and expense | |||||
| Interest and similar income | 3,205,509 | 3,507,996 | 3,522,707 | 0.4% | 9.9% |
| Interest and similar expenses (1) | (817,056) | (936,600) | (911,699) | -2.7% | 11.6% |
| Net interest, similar income and expenses | 2,388,453 | 2,571,396 | 2,611,008 | 1.5% | 9.3% |
| Provision for credit losses on loan portfolio | (532,192) | (922,169) | (657,384) | -28.7% | 23.5% |
| Recoveries of written-off loans | 47,417 | 52,943 | 55,320 | 4.5% | 16.7% |
| Provision for credit losses on loan portfolio, net of recoveries | (484,775) | (869,226) | (602,064) | -30.7% | 24.2% |
| Net interest, similar income and expenses, after provision for credit losses on loan portfolio |
1,903,678 | 1,702,170 | 2,008,944 | 18.0% | 5.5% |
| Other income | |||||
| Fee income | 698,207 | 748,269 | 771,463 | 3.1% | 10.5% |
| Net gain on foreign exchange transactions | 239,547 | 266,027 | 259,059 | -2.6% | 8.1% |
| Net loss on securities | 26,998 | 63,754 | 77,981 | 22.3% | 188.8% |
| Net gain (loss) from associates | (7,269) | (1,373) | (535) | -61.0% | -92.6% |
| Net gain (loss) on derivatives held for trading | 20,553 | 29,594 | 18,726 | -36.7% | -8.9% |
| Net gain (loss) from exchange differences | 4,691 | (13) | 8,987 | n.a | 91.6% |
| Others | 68,255 | 77,366 | 44,337 | -42.7% | -35.0% |
| Total other income | 1,050,982 | 1,183,624 | 1,180,018 | -0.3% | 12.3% |
| Total expenses | |||||
| Salaries and employee benefits | (546,048) | (592,595) | (588,744) | -0.6% | 7.8% |
| Administrative expenses | (571,780) | (794,793) | (622,024) | -21.7% | 8.8% |
| Depreciation and amortization (2) | (112,872) | (123,363) | (119,025) | -3.5% | 5.5% |
| Other expenses | (39,563) | (100,066) | (45,953) | -54.1% | 16.2% |
| Total expenses | (1,270,263) | (1,610,817) | (1,375,746) | -14.6% | 8.3% |
| Profit before income tax | 1,684,397 | 1,274,977 | 1,813,216 | 42.2% | 7.6% |
| Income tax | (420,795) | (320,936) | (431,670) | 34.5% | 2.6% |
| Net profit | 1,263,602 | 954,041 | 1,381,546 | 44.8% | 9.3% |
| Non-controlling interest | |||||
| Net profit attributable to BCP | 1,263,602 | 954,041 | 1,381,546 | 44.8% | 9.3% |
Selected Financial Indicators
| Quarter | |||
| 1Q23 | 4Q23 | 1Q24 | |
| Profitability | |||
| ROAA (1)(2) | 2.8% | 2.1% | 3.0% |
| ROAE (1)(2) | 22.5% | 15.5% | 23.4% |
| Net interest margin (1)(2) | 5.55% | 5.99% | 6.04% |
| Risk adjusted NIM (1)(2) | 4.42% | 3.96% | 4.64% |
| Funding Cost (1)(2)(3) | 2.2% | 2.5% | 2.4% |
| Quality of loan portfolio | |||
| IOL ratio | 4.0% | 4.2% | 4.3% |
| NPL ratio | 5.6% | 6.0% | 6.4% |
| Coverage of IOLs | 135.1% | 135.8% | 134.1% |
| Coverage of NPLs | 95.3% | 93.8% | 90.8% |
| Cost of risk (4) | 1.6% | 2.9% | 2.1% |
| Operating efficiency | |||
| Oper. expenses as a percent. of total income - reported (5) | 36.8% | 41.8% | 36.2% |
| Oper. expenses as a percent. of av. tot. assets (1)(2)(5) | 2.7% | 3.3% | 2.9% |
| (1) Ratios are annualized. |
| (2) Averages are determined as the average of period-beginning and period-ending balances. |
| (3) The funding costs differs from previously reported due to a methodoloy change in the denominator, which no longer includes the following accounts: acceptances outstanding, reserves for property and casualty claims, reserve for unearned premiums, reinsurance payable and other liabilities. |
| (4) Cost of risk: Annualized provision for loan losses / Total loans. |
| (5) Total income includes net interest income, fee income, net gain on foreign exchange transactions, result on exchange difference and net gain on derivatives. Operating expenses includes Salaries and social benefits, administrative, general and tax expenses and depreciation and amortization. |
| Datos elaborados por BCP para uso Interno | 61 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.5. BCP Bolivia
Statement of Financial Position
(S/ Thousands, IFRS)
| As of | % change | ||||
| QoQ | YoY | ||||
| ASSETS | |||||
| Cash and due from banks | 1,979,856 | 2,552,099 | 2,374,484 | -7.0% | 19.9% |
| Investments | 1,668,326 | 1,522,673 | 1,578,839 | 3.7% | -5.4% |
| Total loans | 9,362,120 | 9,401,800 | 9,739,036 | 3.6% | 4.0% |
| Current | 9,108,055 | 9,112,231 | 9,434,678 | 3.5% | 3.6% |
| Internal overdue loans | 228,195 | 240,528 | 250,051 | 4.0% | 9.6% |
| Refinanced | 25,869 | 49,040 | 54,307 | 10.7% | 109.9% |
| Allowance for loan losses | (392,762) | (351,688) | (352,327) | 0.2% | -10.3% |
| Net loans | 8,969,357 | 9,050,112 | 9,386,709 | 3.7% | 4.7% |
| Property, plant and equipment, net | 63,692 | 66,129 | 65,712 | -0.6% | 3.2% |
| Other assets | 290,842 | 309,865 | 339,170 | 9.5% | 16.6% |
| Total assets | 12,972,073 | 13,500,877 | 13,744,915 | 1.8% | 6.0% |
| LIABILITIES AND |
|||||
| Deposits and obligations | 10,836,041 | 11,482,143 | 11,727,803 | 2.1% | 8.2% |
| Due to banks and correspondents | 81,653 | 78,296 | 76,650 | -2.1% | -6.1% |
| Bonds and subordinated debt | 94,607 | 161,916 | 161,970 | 0.0% | 71.2% |
| Other liabilities | 1,109,657 | 889,949 | 879,269 | -1.2% | -20.8% |
| Total liabilities | 12,121,958 | 12,612,305 | 12,845,693 | 1.9% | 6.0% |
| Net equity | 850,115 | 888,573 | 899,222 | 1.2% | 5.8% |
| TOTAL LIABILITIES AND |
12,972,073 | 13,500,877 | 13,744,915 | 1.8% | 6.0% |
Statement of Income
(S/ Thousands, IFRS)
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Net interest income | 82,670 | 84,160 | 86,848 | 3.2% | 5.1% |
| Provision for loan losses, net of recoveries | (3,349) | (27,530) | (14,653) | -46.8% | 337.5% |
| Net interest income after provisions | 79,321 | 56,630 | 72,195 | 27.5% | -9.0% |
| Non-financial income | 45,306 | 48,427 | 62,912 | 29.9% | 38.9% |
| Total expenses | (92,549) | (82,730) | (101,421) | 22.6% | 9.6% |
| Translation result | (51) | 190 | 163 | -14.0% | -420.8% |
| Income taxes | (11,290) | (2,865) | (13,002) | 353.8% | 15.2% |
| Net income | 20,738 | 19,652 | 20,847 | 6.1% | 0.5% |
Selected Financial Indicators
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Efficiency ratio | 60.2% | 59.0% | 58.1% | -90 bps | -220 bps |
| ROAE | 9.6% | 8.8% | 8.8% | 0 bps | -80 bps |
| L/D ratio | 86.4% | 81.9% | 83.0% | 120 bps | -340 bps |
| IOL ratio | 2.4% | 2.6% | 2.6% | 0 bps | 10 bps |
| NPL ratio | 2.7% | 3.1% | 3.1% | 0 bps | 40 bps |
| Coverage of IOLs | 172.1% | 146.2% | 140.9% | -530 bps | n.a. |
| Coverage of NPLs | 154.6% | 121.5% | 115.8% | -570 bps | n.a. |
| Branches | 46 | 46 | 46 | 0.0% | 0.0% |
| Agentes | 1,355 | 1,350 | 1,350 | 0.0% | -0.4% |
| ATMs | 313 | 315 | 315 | 0.0% | 0.6% |
| Employees | 1,690 | 1,726 | 1,719 | -0.4% | 1.7% |
| Datos elaborados por BCP para uso Interno | 62 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.6. Mibanco
Statement of Financial Position
(S/ Thousands, IFRS)
| As of | % change | ||||
| QoQ | YoY | ||||
| ASSETS | |||||
| Cash and due from banks | 1,733,556 | 1,121,452 | 1,250,746 | 11.5% | -27.9% |
| Investments | 1,412,863 | 2,556,436 | 2,882,015 | 12.7% | 104.0% |
| Total loans | 14,006,154 | 13,269,018 | 13,080,143 | -1.4% | -6.6% |
| Current | 13,204,563 | 12,333,980 | 12,106,939 | -1.8% | -8.3% |
| Internal overdue loans | 696,787 | 834,356 | 870,892 | 4.4% | 25.0% |
| Refinanced | 104,805 | 100,682 | 102,312 | 1.6% | -2.4% |
| Allowance for loan losses | (1,040,487) | (1,002,847) | (968,082) | -3.5% | -7.0% |
| Net loans | 12,965,667 | 12,266,171 | 12,112,061 | -1.3% | -6.6% |
| Property, plant and equipment, net | 131,164 | 139,064 | 135,215 | -2.8% | 3.1% |
| Other assets | 753,989 | 815,263 | 810,313 | -0.6% | 7.5% |
| Total assets | 16,997,238 | 16,898,386 | 17,190,351 | 1.7% | 1.1% |
| LIABILITIES AND |
|||||
| Deposits and obligations | 9,577,206 | 9,999,230 | 10,118,296 | 1.2% | 5.6% |
| Due to banks and correspondents | 2,759,826 | 2,411,642 | 2,428,753 | 0.7% | -12.0% |
| Bonds and subordinated debt | 576,360 | 611,166 | 516,761 | -15.4% | -10.3% |
| Other liabilities | 1,282,571 | 879,725 | 1,494,755 | 69.9% | 16.5% |
| Total liabilities | 14,195,963 | 13,901,763 | 14,558,564 | 4.7% | 2.6% |
| Net equity | 2,801,275 | 2,996,623 | 2,631,786 | -12.2% | -6.1% |
| TOTAL LIABILITIES AND |
16,997,238 | 16,898,386 | 17,190,351 | 1.7% | 1.1% |
Statement of Income
(S/ Thousands, IFRS)
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Net interest income | 518,763 | 538,522 | 546,271 | 1.4% | 5.3% |
| Provision for loan losses, net of recoveries | (227,369) | (208,880) | (150,725) | -27.8% | -33.7% |
| Net interest income after provisions | 291,394 | 329,642 | 395,546 | 20.0% | 35.7% |
| Non-financial income | 36,337 | 55,776 | 39,713 | -28.8% | 9.2% |
| Total expenses | (302,982) | (324,854) | (311,728) | -4.0% | 2.9% |
| Translation result | - | - | - | n.a | n.a |
| Income taxes | (1,607) | (6,670) | (30,960) | 364.2% | n.a |
| Net income | 23,142 | 53,893 | 92,571 | 71.8% | 300.0% |
Selected Financial Indicators
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Efficiency ratio | 54.1% | 52.9% | 53.3% | 40 bps | -90 bps |
| ROAE | 3.3% | 7.3% | 13.1% | 580 bps | 980 bps |
| ROAE incl. Goowdill | 3.2% | 6.9% | 12.5% | 550 bps | 930 bps |
| L/D ratio | 146.2% | 132.7% | 129.3% | -340 bps | -1700 bps |
| IOL ratio | 5.0% | 6.3% | 6.7% | 40 bps | 170 bps |
| NPL ratio | 5.7% | 7.0% | 7.4% | 40 bps | 170 bps |
| Coverage of IOLs | 149.3% | 120.2% | 111.2% | -900 bps | -3820 bps |
| Coverage of NPLs | 129.8% | 107.3% | 99.5% | -780 bps | -3030 bps |
| Branches (1) | 286 | 292 | 290 | (2) | 4 |
| Employees | 9,904 | 9,842 | 9,485 | (357) | (419) |
| (1) Includes Banco de la Nacion branches, which in |
| Datos elaborados por BCP para uso Interno | 63 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.7.
Key Indicators of Financial Position
(S/ Thousands, IFRS)
| Quarter | % change | ||||
| QoQ | YoY | ||||
| Total assets | 790,586 | 740,729 | 782,372 | 5.6% | -1.0% |
| Total liabilities | 400,483 | 240,657 | 339,806 | 41.2% | -15.2% |
| Net shareholders' equity (1) | 390,103 | 500,072 | 442,566 | -11.5% | 13.4% |
Statement of Income
(S/ Thousands, IFRS)
| Quarter | % change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Income from commissions | 89,532 | 87,477 | 94,613 | 8.2% | 5.7% |
| Administrative and sale expenses | (38,986) | (41,049) | (41,498) | 1.1% | 6.4% |
| Depreciation and amortization | (6,194) | (6,388) | (6,606) | 3.4% | 6.7% |
| Operating income | 44,352 | 40,040 | 46,509 | 16.2% | 4.9% |
| Other income and expenses, net (profitability of lace) | 8,742 | 13,653 | 5,057 | -63.0% | -42.2% |
| Income tax | (13,295) | (12,848) | (14,297) | 11.3% | 7.5% |
| Net income before translation results | 39,799 | 40,845 | 37,269 | -8.8% | -6.4% |
| Translations results | (41) | (466) | (256) | -44.9% | 521.0% |
| Net income | 39,758 | 40,379 | 37,013 | -8.3% | -6.9% |
| ROE (1) | 35.9% | 33.7% | 31.4% | -220 pbs | -450 pbs |
(1) Net shareholders' equity includes unrealized gains from Prima's investment portfolio.
Funds under management
| Funds under management | % share |
% share |
||
| Fund 0 | 1,555 | 4.2% | 1,625 | 4.3% |
| Fund 1 | 6,385 | 17.3% | 6,540 | 17.2% |
| Fund 2 | 25,292 | 68.6% | 26,240 | 68.8% |
| Fund 3 | 3,619 | 9.8% | 3,707 | 9.7% |
| Total S/ Millions | 36,851 | 100% | 38,113 | 100% |
| Source: SBS |
Nominal profitability over the last 12 months
| Fund 0 | 8.4% | 8.3% |
| Fund 1 | 16.4% | 12.3% |
| Fund 2 | 10.3% | 8.7% |
| Fund 3 | 5.0% | 10.1% |
(1) Includes new methodology of SBS to calculate quota value.
AFP commissions
| Fee based on flow | 1.60% | Applied to the affiliates' monthly remuneration |
| Mixed fee | Applies annualy to the new balance since |
|
| Balance | 1.25% |
Main indicators
| Main indicators and market share | Prima 4Q23 |
System 4Q23 |
% share 4Q23 |
Prima 1Q24 |
System 1Q24 |
| Affiliates | 2,342,422 | 9,285,783 | 25.2% | 2,342,539 | 9,409,604 |
| New affiliations | - | 107,451 | 0.0% | - | 128,591 |
| Funds under management (S/ Millions) | 36,851 | 122,806 | 30.0% | 38,113 | 126,617 |
| Collections (S/ Millions) | 1,030 | 3,783 | 27.2% | 694 | 2,593 |
| Voluntary contributions (S/ Millions) | 854 | 2,008 | 42.5% | 912 | 2,086 |
| RAM Flow (S/ Millions) (1) | 1,399 | 4,581 | 30.5% | 1,459 | 4,787 |
| Source: SBS | |||||
| (1) |
| Datos elaborados por BCP para uso Interno | 64 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.8. Grupo Pacifico
Key Indicators of Financial Position
(S/ Thousands, IFRS)
| As of | % Change | ||||
| Mar-23 | Mar-24 | QoQ | YoY | ||
| Total Assets | 16,302,041 | 16,549,171 | 16,811,863 | 1.6% | 3.1% |
| Investment on Securities (1) | 11,191,968 | 12,704,842 | 12,485,677 | -1.7% | 11.6% |
| Total Liabilities | 13,857,430 | 13,443,688 | 13,920,334 | 3.5% | 0.5% |
| Net Equity | 2,431,696 | 3,086,571 | 2,878,536 | -6.7% | 18.4% |
Statement of Income
(S/ Thousands, IFRS)
| Quarter | % Change | ||||
| 1Q23 | 4Q23 | 1Q24 | QoQ | YoY | |
| Insurance Service Result | 296,390 | 255,886 | 341,794 | 33.6% | 15.3% |
| Reinsurance Result | -114,009 | -96,996 | -180,053 | 85.6% | 57.9% |
| Insurance underwriting result | 182,381 | 158,890 | 161,741 | 1.8% | -11.3% |
| Interest income | 189,963 | 183,933 | 219,545 | 19.4% | 15.6% |
| Interest Expenses | -102,453 | -126,387 | -129,114 | 2.2% | 26.0% |
| Net Interest Income | 87,510 | 57,546 | 90,431 | 57.1% | 3.3% |
| Fee Income and Gain in FX | -3,184 | -2,744 | -3,262 | 18.9% | 2.4% |
| Other Income No Core: | |||||
| Net gain (loss) from exchange differences | -1,343 | 893 | -182 | -120.4% | -86.4% |
| Net loss on securities and associates | 30,090 | 39,233 | 23,222 | -40.8% | -22.8% |
| Other Income not operational | 12,501 | 32,649 | 29,751 | -8.9% | 138.0% |
| Other Income | 38,064 | 70,031 | 49,529 | -29.3% | 30.1% |
| Operating expenses | -64,268 | -85,485 | -76,174 | -10.9% | 18.5% |
| Other expenses | 654 | -35,317 | -4,979 | -85.9% | -861.3% |
| Total Expenses | -63,614 | -120,802 | -81,153 | -32.8% | 27.6% |
| Income tax | -3,200 | -29,667 | -3,795 | -87.2% | 18.6% |
| Net income | 241,141 | 135,998 | 216,753 | 59.4% | -10.1% |
| *Financial statements without consolidatio |
| (1) Excluding investments in real estate. |
From 1Q15 and on, Grupo Pacifico's financial statements reflect the agreement with
| ● | private health insurance managed by Grupo Pacifico and included in its Financial Statements in each of the accounting lines; |
| ● | corporate health insurance (dependent workers); and |
| ● | medical services. |
The businesses described in ii) and iii) are managed by
As explained before, corporate health insurance and medical services businesses are consolidated by
| Datos elaborados por BCP para uso Interno | 65 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
Corporate health insurance and Medical Services (1)
(S/ in thousands)
| Quarterly | % change | ||||
| 1Q22 | 4Q23 | 1Q24 | QoQ | YoY | |
| Results | |||||
| Net earned premiums | 340,905 | 350,926 | 357,999 | 2.0% | 5.0% |
| Net claims | (259,039) | (260,201) | (290,266) | 11.6% | 12.1% |
| Net fees | (14,627) | (14,818) | (15,658) | 5.7% | 7.0% |
| Net underwriting expenses | (2,995) | (3,262) | (3,305) | 1.3% | 10.4% |
| Underwriting result | 64,243 | 72,645 | 48,769 | -32.9% | -24.1% |
| Net financial income | 4,133 | 5,035 | 5,776 | 14.7% | 39.8% |
| Total expenses | (22,469) | (33,987) | (25,897) | -23.8% | 15.3% |
| Other income | 2,709 | 2,036 | 2,216 | 8.8% | -18.2% |
| Traslations results | (1,180) | (1,596) | 64 | -104.0% | -105.4% |
| Income tax | (15,249) | (13,532) | (9,193) | -32.1% | -39.7% |
| Net income before Medical services | 32,187 | 30,602 | 21,734 | -29.0% | -32.5% |
| Net income of Medical services | 28,462 | 30,083 | 31,106 | 3.4% | 9.3% |
| Net income | 60,649 | 60,685 | 52,840 | -12.9% | -12.9% |
| (1) Reported under IFRS 4 standards. |
| Datos elaborados por BCP para uso Interno | 66 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.6.9. Investment Management & Advisory *
| Investment Management & Advisory | Quarter | % change | |||
| S/000 | 1Q23 | 4Q23 | 1Q24 | QoQ | YoY |
| Net interest income | 22,042 | 18,757 | 6,460 | -65.6% | -71% |
| Non-financial income | 192,785 | 226,078 | 233,390 | 3.2% | 21.1% |
| Fee income | 122,861 | 147,019 | 145,099 | -1.3% | 18.1% |
| Net gain on foreign exchange transactions | 16,084 | 14,844 | 12,638 | -14.9% | -21.4% |
| Net gain on sales of securities | 51,902 | 64,928 | 54,569 | -16.0% | 5.1% |
| Derivative Result | (28,858) | (16,731) | 22,028 | -231.7% | -176.3% |
| Result from exposure to the exchange rate | 22,997 | 9,470 | (12,973) | -237.0% | -156.4% |
| Other income | 7,799 | 6,548 | 12,029 | 83.7% | 54.2% |
| Operating expenses (1) | (163,109) | (192,097) | (180,091) | -6.2% | 10.4% |
| Operating income | 51,718 | 52,738 | 59,759 | 13.3% | 15.5% |
| Income taxes | (7,611) | (10,006) | (10,943) | 9.4% | 43.8% |
| Non-controlling interest | (175) | (6,818) | 2,576 | -137.8% | -1572.0% |
| Net income | 44,282 | 49,550 | 46,240 | -6.7% | 4.4% |
| * |
| (1) Includes: Salaries and employee's benefits + Administrative expenses + Assigned expenses + Depreciation and amortization + Tax and contributions + Other expenses. |
| Datos elaborados por BCP para uso Interno | 67 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.7. Table of calculations
| Table of calculations(1) | ||
| Profitability | Interest earning assets | Cash and due from banks + Total investments + Cash collateral, reverse repurchase agreements and securities borrowing + Loans |
| Funding | Deposits and obligations + Due to banks and correspondents + BCRP instruments + Repurchase agreements with clients and third parties + Bonds and notes issued |
|
| Net Interest Margin (NIM) |
Net Interest Income (excluding Net Insurance Financial Expenses) Average Interest Earning Assets |
|
| Risk-adjusted Net Interest Margin (Risk-adjusted NIM) |
Annualized Net Interest Income (excluding Net Insurance Financial Expenses) - Annualized Provisions Average period end and period beginning interest earning assets |
|
| Funding cost |
Interest Expense (Does not Include Net Insurance Financial Expenses) Average Funding |
|
| Core income | Net Interest Margin + Fee Income + Net Gain on Foreign exchange transactions | |
| Other core income | Fee Income + Net Gain on Foreign exchange transactions | |
| Other non-core income | + Net Gain from exchange differences + Other non operative income |
|
| Retuon average assets (ROA) |
Annualized Net Income attributable to Average Assets |
|
| Retuon average equity (ROE) |
Annualized Net Income attributable to Average Net Equity |
|
| Portfolio quality | Internal overdue ratio |
Internal overdue loans Total Loans |
| Non - performing loans ratio (NPL ratio) |
(Internal overdue loans + Refinanced loans) Total Loans |
|
| Coverage ratio of internal overdue loans |
Allowance for loans losses Internal overdue loans |
|
| Coverage ratio of non - performing loans |
Allowance for loans losses Non - performing loans |
|
| Cost of risk |
Annualized provision for credit losses on loans portfolio, net of recoveries Average Total Loans |
|
| Operating performance | Operating expenses |
Salaries and empoyees benefits + Administrtive expenses + Depreciation and amortization |
| Operating Income |
Net interest, similar income, and expenses + Fee income + Net gain on foreign exchange transactions + Net gain from associates + Net gain on derivatives held for trading + Net gain from echange differences |
|
| Efficiency ratio |
Salaries and employee benefits + Administrativeexpenses + Depreciation and amortization Net interest, similar income and expenses + Fee Income + Net gain on foreign exchange transactions + Net gain from associates+Net gain on derivatives held for trading + Result on exchange differences+Insurance Underwriting Result |
|
| Capital Adequacy | Liquidity Coverage ratio |
Total High Quality Liquid Assets + Min( Total Inflow30 days ; 75% * Total Outflow30 days) Total Outflow 30 days |
|
Risk - weighted assets |
||
| Tier 1 ratio |
Tier 1(2) Risk - weighted assets |
|
| Common Equity Tier 1 ratio (3) |
Capital + Reserves - 100% of applicable deductions (4) + Retained Earnings + Unrealized gains or losses Risk - weighted assets |
| (1) Averages are determined as the average of period-beginning and period-ending balances. |
| (2) Includes investment in subsidiaries, goodwill, intangibles and deferred tax that rely on future profitability. |
| (3) Common Equity Tier 1 = Capital Stock + Reserves + Accumulated earnings - Unrealized profits or losses - 100% deductions (investment in subsidiaries, goodwill, intangible assets and deferred tax assets based on future returns). |
| (4) Includes investment in subsidiaries, goodwill, intangible assets and deferred taxes based on future returns. |
| Datos elaborados por BCP para uso Interno | 68 |
| | | Earning Release 1Q / 2024 | Analysis of 1Q24 Consolidated Results | |
| 12. Appendix |
12.8. Glossary of terms
| Term | Definition |
| Government Program Loans ("GP" or "GP Loans") | Loan Portfolio related to Reactiva Peru and FAE-Mype and Impulso Myperu programs to respond quickly and effectively to liquidity needs and maintain the payment chain |
| Financially Included | Stock of financially included clients through BCP since 2020. New clients with BCP savings accounts or new Yape a-liates that: (i)Do not have debt in the financial system nor other BCP products in the 12 months prior to their inclusion, and (ii) Have performed at least 3 monthly transactions on average through any BCP channel in the last three months |
| MAU | Monthly Active Users |
| TPV | Total Payment Volume |
| GMV | Gross Merchant Volume |
| Datos elaborados por BCP para uso Interno | 69 |
Attachments
Disclaimer
Comprehensive Health Coverage Key in Managing Rising Staff Costs
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF BROOKFIELD REINSURANCE LTD. AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 AND FOR THE THREE MONTHS ENDED – Form 6-K
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