fixed income presentation 2017/personas/relaciones … · chavimochic iii 630 panamerican games 550...

Fixed Income Presentation

Fourth Quarter 2017

Disclaimer

2

The information contained herein has been prepared by Banco de Crédito del Perú (“BCP”) solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell

any securities and should not be treated as giving investment or other advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or

reliability of the information contained herein. Any opinions expressed in this presentation are subject to change without notice and BCP is under no obligation to update or keep current the

information contained herein. The information contained herein does not purport to be complete and is qualified in its entirety by reference to more detailed information appearing elsewhere, if

any. BCP and its respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this

material.

This presentation may contain statements that are forward-looking subject to risks and uncertainties and factors, which are based on current expectations and projections about future events

and trends that may affect BCP’s business. You are cautioned that any such forward-looking statements are not guarantees of future performance. Several factors may adversely affect the

estimates and assumptions on which these forward-looking statements are based, many of which are beyond our control.

Investment Highlights

3

Disciplined and Conservative Capital Management

Peru: Strong Macroeconomic Fundamentals and Underpenetrated Financial System

Leading Financial Institution in Latin America and Peru

Solid Growth and Profitability with Strong Efficiency Levels

Solid Asset Quality and Stable Funding Base

Comprehensive Business Strategy with Strong Governance Focus

1

2

3

5

6

4

Macroeconomic Outlook

Latam & Peru

Rating Scale Peru Brazil Chile Colombia México

AA- / Aa3 *+7Moody's

(negative)

A+ / A1 *+6 S&P (stable)

A / A2 *+5 Fitch (stable)

A- / A3 *+4Moody's

(stable)

Moody's

(negative)

BBB+ / Baa1 *+3S&P (stable)

Fitch (stable)

S&P (stable)

Fitch (stable)

BBB / Baa2 *+2

Moody's

(stable)

Fitch (stable)

BBB- / Baa3 *+1 S&P (stable)

BB+ / Ba1 *-1

BB / Ba2 *-2

Moody's

(stable)

Fitch

(negative)

BB- / Ba3 *-3 S&P (stable)

5

Peru: a brief introduction 1

Peru at a glance LatAm: CDS to 5 years (As of Feb 14th)

Sovereign Ratings

Sources: Bloomberg, BCRP, INEI, BCP Economic Research

Economic Indicators (2016)

GDP (Billions) USD 195.7

Exports (Billions) USD 37.0

Copper USD 10.2

Gold USD 7.4

Agriculture USD 5.6

Imports (Billions) USD 35.1

Gas and Fuels USD 3.8

Credit / GDP (%) 40.9%

Socio-Demographic Indicators (2016)

Population 31.5 million

Urban Population (%, 2015) 76.7%

Rural Population (%, 2015) 23.3%

Economically Active Population (EAP) 16.5 million

Urban EAP 12.6 million

GDP per Capita USD 6,205

GDP per Capita (ppp) USD 12,913

Poverty Rate (%) 20.7%

164

108 107

81

54

0

20

40

60

80

100

120

140

160

180

Brazil Mexico Colombia Peru Chile

6

Peru’s economic performance and outlook remain above LatAm peers’1

*Forecasts by BCP Economic Research as of February, 2018.

Sources: BCP, IMF, BCRP, LatinFocus (Jan-18) and Bloomberg.

e: estimates

GDP Growth (real, %) Inflation (%)

Fiscal Balance (% GDP)

International Reserves (% GDP) Public Debt (% GDP)

Current Account Balance (% of GDP)

3.5

2004 2006 2008 2010 2012 2014 2016 2018e

Peru Chile Colombia Mexico Brazil

3.21.4 2.5

-5

0

5

10

15

2004 2006 2008 2010 2012 2014 2016 2018e


-0.9

-10.0

-5.0

0.0

5.0

10.0

2004 2006 2008 2010 2012 2014 2016 2018e

Peru Chile Colombia

1.4

-0.5

-3.0

0.5

-1.5-2.7

-1.7 -1.9-3.5-3.4 -2.9

-2.1-2.6

-6.4

-8.32010 - 2012 2013 - 2015 2016 - 2018e


31 32 30

15 15 1510

13 1512 15 1514 16

19

2010 - 2012 2013 - 2015 2016 - 2018e


23 21 2611 15

23

43 46 5243

50 5562 65

83

2010 - 2012 2013 - 2015 2016 - 2018e


Some tailwinds:

Favorable international environment.

Counter-cyclical monetary and fiscal policies.

Some headwinds:

Further deter of business and consumer expectations due to political tensions and the outcome of the “Construction Club” scandal

Solid macroeconomic fundamentals persist1

Peru will still out-perform the main economies of the region (Brazil, Mexico, Argentina, Colombia and Chile)

We lowered our GDP growth forecast from 4.2% to 3.5% due to political uncertainty and risks in the construction sector. Local

headwinds will stop Peru from growing close to 5% (in line with the average growth of the past 25 years).

-5.0

0.0

5.0

10.0

15.0

20.0

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

20

17

GDP

Domestic Demand3.5

3.2

2.52.3 2.3

1.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Peru Chile Argentina Colombia Mexico Brazil

GDP and Domestic Demand Growth (% change) GDP Growth forecast for 2018 (% change)

7Source: BCP Economic Research, IMF (Jan-18), Credicorp Capital, BCRP

Average 1993-2018:

GDP 4.9%

DD: 5.0%

Favorable international environment1

2018 will be a better year for GDP and Domestic Demand…

Commodity price change (% change Jan-18 vs Jan-16)

The IMF recently made upwards revision to the world GDP growth forecast for 2018 from 3.7% to 3.9% (third consecutive upward revision and

highest expansion in 7 years).

Price of copper stands around USD/lb. 3.20%, almost 60% above the observed two year ago. Moreover, the price of zinc stands close to a 10-year

high.

Despite political turmoil, demand for Peru from foreign investors remains robust due to the strong macroeconomic fundamentals (Sovereign yields

have fallen, on average, 165bps in the past year).

121

55

20

0

20

40

60

80

100

120

140

Zinc Copper Gold

8Source: Bloomberg

Changes in Sovereign yields and UST (% change y/y in

basic points, as of 14-Feb-18)

-212-189

-177-166

-148 -138

-100

93

43

-250

-200

-150

-100

-50

0

50

100

150

Sov 2

020

Sov 2

023

Sov 2

024

Sov 2

026

Sov 2

028

Sov 2

031

Sov 2

032

US

T2Y

US

T10

Y

Fiscal Policy1

The Ministry of Finance faces important short and medium-term challenges…

Public Investment of the General Government in real terms (% change y/y)Fiscal Revenues in emerging markets with investment grade in

2017 (% of GDP)

The fiscal deficit closed 2017 at 3.2% of GDP, the highest print in 17 years. Fiscal Revenues represented 18.0% of GDP, the lowest print in 14 years.

The main challenges for the Ministry of Finance in the short and medium term are:

Ensuring Public Investment grows at two-digit rates (1H17: -10% y/y).

Substantially increasing fiscal revenues (VAT Peru: 18%, VAT Chile & Colombia: 18-19%).

Complying with the commitment from the Government to narrow the fiscal deficit from 3.5% in 2018 to 1.0% by 2021.

Notable improving the quality of public spending, as well as prioritizing public investment projects and Public-Private Partnerships (PPP’s).

Several years of subdued growth and persistent inability to comply with fiscal targets could trigger a change in the sovereign credit rating to negative in

2018-2019.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Po

lan

d

Russia

So

uth

Afr

ica

Chin

a

Colo

mbia

Ch

ile

Tha

ilan

d

Mexic

o

Pa

na

ma

India

Mala

ysia

Pe

ru

Indo

ne

sia

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

Ja

n-1

8

9Source: BCRP, IMF

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

De

c-1

2

Apr-

13

Aug

-13

De

c-1

3

Apr-

14

Aug

-14

De

c-1

4

Apr-

15

Aug

-15

De

c-1

5

Apr-

16

Aug

-16

De

c-1

6

Apr-

17

Aug

-17

De

c-1

7

Apr-

18

Aug

-18

De

c-1

8

Headline Inflation

Core Inflation

Monetary Policy1

The Central Bank has lowered its policy rate 125bps since Apr-17

Inflation forecast (%) BCRP vs FED key rate spread (basic points)

In Jan-18 headline inflation stood at 1.3% y/y, below the mid-point of the target range (1-3%), and the lowest print in 8 years. Core inflation stood at 2.0%

y/y (Dec-17: 2.2%), the lowest print in 5 years.

We expect annual inflation to stand below 1.0% y/y in temporarily during March. Thereafter it will gradually accelerate and close the year close to 2.5%

We expect a new 25bps rate cut from the BCRP (current: 3.00% and -125bps since Apr-17) due to the decrease of annual inflation and a negative output

gap which narrows at a slower pace. We see this rate cut occurring in March. However, currently we can not discard further rate cuts.

As the Central Bank lowers the policy rate and the FED hikes its policy rate, the key rate spread will narrow

-200

-100

0

100

200

300

400

500

600

700

Ja

n-0

4

Oct-

04

Ju

l-05

Apr-

06

Ja

n-0

7

Oct-

07

Ju

l-08

Apr-

09

Ja

n-1

0

Oct-

10

Ju

l-11

Apr-

12

Ja

n-1

3

Oct-

13

Ju

l-14

Apr-

15

Ja

n-1

6

Oct-

16

Ju

l-17

Apr-

18

10Source: INEI, BCRP, Fed, BCP Economic Research

FX and External Accounts1

Strong Trade Surplus in 2018 and PEN appreciation pressures…

Trade and Current Account Balance (% of GDP, 4-quarters-rolling) Latam Currencies (Jan-13=100)

This year we expect the trade surplus to reach its highest print in 7 years as the price of copper stands around USD/lb. 3.20 (+60% compared to two-

years ago) and the price of zinc stands close to a 10-year high.

We expect the exchange rate to close 2018 between the range USDPEN 3.20-3.25, with the balance of risks pointing towards PEN appreciation.

Central Bank intervention will be key this year after in 2017 it made net purchases for USD 5,248 million, the highest since 2012.

Nonetheless, the towards the end of year depreciation pressures could emerge as the FED raises its monetary policy rate.

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

1Q

02

4Q

02

3Q

03

2Q

04

1Q

05

4Q

05

3Q

06

2Q

07

1Q

08

4Q

08

3Q

09

2Q

10

1Q

11

4Q

11

3Q

12

2Q

13

1Q

14

4Q

14

3Q

15

2Q

16

1Q

17

Trade Balance

Current Account Balance

80

100

120

140

160

180

200

220

Ja

n-1

3

Ja

n-1

4

Ja

n-1

5

Ja

n-1

6

Ja

n-1

7

Ja

n-1

8

PEN CLP COP MXN BRL

11Source: BCRP, Bloomberg, BCP Economic Research,

12

1 Growth Potential

Expected GDP Growth 2018-2021 (Var. % y/y) Financial Penetration 2016 (%) (1)

Real GDP Per Capita (1975=100) Favorable demographic structure

Source: BCRP, IMF, JPMorgan, LatinFocus (Jan-18), BCP Economic Research

(1) Loans to the Private Sector/ GDP.

.

3.8 3.73.2 3.0 3.1 3.0

2.7 2.5

1.6

-2.1-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

PE

R

BO

L

AR

G

CO

L

UR

U

CH

I

BR

A

ME

X

EC

U

VE

N

89

48 4641

0

10

20

30

40

50

60

70

80

90

100

CHI BRA COL PER

0

20

40

60

80

100

120

140

160

19501954195819621966197019741978198219861990199419982002200620102014

1975 GDP per Capita similar

to 2006 level

81.991.1

48.4

53.0

6.3

24.6

75.8

28.4

0

10

20

30

40

50

60

70

80

90

100

1950 1958 1966 1974 1982 1990 1998 2006 2014 2022 2030 2038 2046

Total Dependency Ratio

Elderly Dependency Ratio

Youth Dependency Ratio

13

1 Infrastructure Investment

Infrastructure investment projects Investment in transport infrastructure (USD Millions)

*Amazonian Hydroid.

Source: Apoyo Consultoría, BCRP, Cosapi, MEF, MINAGRI, MINEM, Proinversión, Plan Nacional de Infraestructura 2016-2025, media

Project Investment (US$

Millions)

Reconstruction – El Niño 7,000

Line 2 of Lima’s Metro 5,400

Extension of Refinery Talara 5,400

Periferical Roadway Ring of Lima 2,000

Chancay Port 1,850

Jorge Chavez Airport – Expansion 1,500

Northern Pier 730

Chavimochic III 630

Panamerican Games 550

Majes Siguas II 540

San Gabán III 500

L.T. Moyobamba-Iquitos 500

Longitudinal de la Sierra Road Project (Section 4) 464

Sol Highway (Trujillo-Sullana) 398

Expansion of Road Network 6 294

Road Network 4

(Northern Roadway)286

San Martin’s Portuary Terminal 250

Longitudinal de la Sierra Road Project (Section 2) 249

Chilca Uno Expansion 140

Expansion of Road Network 5 138

IIRSA Center

(Section 2)127

Transmission Line Azángaro – Puno 70

Total 29,016

14

1

Source: The Economist – Intelligence Unit: Quantifying market opportunities in Latin America’s cities (feb-17)

Growing Middle Class

Size – Number of people earning over USD 15k per annum (thousands, metropolitan areas)

Growth – Number of people earning over USD 15k per annum (thousands, metropolitan areas)

Geography Rank 2016 2030 % change Absolute Change

Mexico: Mexico City 1 3,772.3 9,440.6 150% 5,668.3

Brazil: Sao Paulo 2 3,220.8 8,025.4 149% 4,804.6

Argentina: Buenos Aires 3 3,844.7 6,709.2 75% 2,864.5

Brazil: Rio de Janeiro 4 2,193.9 5,591.6 155% 3,397.7

Chile: Santiago 5 1,238.8 3,470.6 180% 2,231.8

Peru: Lima 6 641.3 3,413.4 432% 2,772.1

Mexico: Guadalajara 7 646.2 2,177.2 237% 1,531.1

Brazil: Belo Horizonte 8 720.8 1,848.5 156% 1,127.8

Colombia: Bogota 9 442.4 1,645.7 272% 1,203.3

Brazil. Brasilia 10 571.7 1,613.5 182% 1,041.8

Geography Rank 2016 2030 % change

Bolivia: Santa Cruz 1 36.2 522.4 1343%

Bolivia: Cochabamba 2 20.6 263.0 1178%

Bolivia: La Paz 3 17.6 168.1 854%

Ecuador: Guayaquil 4 157.2 980.2 524%

Peru: Chiclayo 5 18.8 109.4 483%

Peru: Arequipa 6 50.5 281.7 458%

Peru: Trujillo 7 32.8 182.9 457%

Haiti: Port-au-Prince 8 15.3 83.0 444%

Paraguay: Asunción 9 103.2 561.1 444%

Peru: Lima 10 641.3 3,413.4 432%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Others

Electricity

Commerce

Construction

Manufacturing

Mining andHydrocarbons

Fishing

Agriculture

CAGR

07’-17’% of GDP

17’

5.8%

5.5%

5.5%

6.2%

1.9%

4.6%

-2.1%

3.4%

49.6%

1.8%

10.9%

5.8%

12.4%

13.9%

0.4%

5.2%

1 GDP by economic sectors

Between 2007 - 2017, Peru’s GDP has registered a +4.9% compounded annual growth

15Source: BCRP

1 Exports by type of product

Between 2007 - 2017, Peru registered compounded annual growth of +4.8% in exports

16Non traditional includes: agriculture and livestock (11.4%), textile (2.8%), chemicals (3.1%), and others (8.7%) .

Source: BCRP

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Others

Non-Traditional (1)

Fuel and Derivatives

Mining

Agricultural

Fishing

CAGR

07’-17’% of exports

17’

0.3%

26.0%

7.5%

60.5%

1.8%

4.0%

1.3%

6.3%

3.8%

4.5%

5.9%

2.0%

1 Exports by destination country

Exports by destination country – 2017* (% of Total Exports)

17Source: SUNAT.

*Jan-Nov

Main destination

countries% of exports

1. China 23.0%

Copper 16.9%

Fish meal 1.9%

Iron 0.9%

Others 3.3%

2. USA 16.8%

Gold 4.7%

Fuels 0.9%

Asparagus 0.7%

Others 10.5%

3. Switzerland 6.9%

Gold 6.9%

4. Canada 4.8%

Gold 2.9%

Others 1.8%

5. South Korea 3.8%

Copper 1.1%

Others 2.7%

23

17

15

14

7

5

4

3

13

China United States Eurozone

LatAm Switzerland Canada

South Korea Japan Others

1 Mining exports

Mining Exports – Products

18Source: BCRP, Ministry of Energy and Mining, BCP – Economic Research

-9.6%

-0.7%

5.2%

-14.1%

6.7%

4.1%

-4.6%

6.7%

1.3%

8.8%

6.3%

0.4%

29.4%

1.6%

1.4%

50.8%

100%

CAGR 07’-17’% of exports 17’

0

5,000

10,000

15,000

20,000

25,000

30,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Molybdenum

Zinc

Lead

Silver

Gold

Iron

Tin

Copper

1.5

2.1

2.5

2.7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Peru’s Copper output

(millions of metric tons)Copper output

(production in thousand metric tons, investment in USD millions)

Projects on the horizon (P) Production Total Investment State

Toquepala’s Expansion 100 550

Toromocho’s Expansion 75 1,300

Mina Justa 110 1,250

Quellaveco 300 4,800

Michiquillay 187 1,900

Tía María 120 1,000

Total (2017 + P) 3,362 10,800

In execution New projects

1 Macroeconomic outlook - Peru

19Source: Estimates by BCP Economic Research as of February, 2018; INEI, BCRP, and SBS.

Banking System, Current Exchange Rate.

Inflation target: 2%, +/- 1%.

2011 2012 2013 2014 2015 2016 2017e 2018e

GDP (US$ Millions) 168,934 189,270 197,905 203,139 192,348 195,655 213,073 227,175

Real GDP (% change) 6.5 6.0 5.8 2.4 3.3 4.0 2.5 3.5

GDP per capita (US$) 5,929 6,620 6,639 6,501 6,168 6,205 6,686 7,055

Domestic demand (% change) 7.7 7.3 7.3 2.2 2.9 1.1 1.3 3.7

Private Consumption (% change) 7.2 7.4 5.7 3.9 4.0 3.3 2.4 3.0

Private Investment (% change) 10.8 15.5 6.9 -2.3 -4.4 -5.9 0.5 3.5

Gross fixed investment (as % GDP) 25.4 27.9 28.4 27.2 24.9 22.8 22.4 22.7

Public Debt (as % GDP) 22.3 20.8 20.0 20.1 23.3 23.8 25.5 27.3

System loan growth (% change)(1) 21.6 12.4 19.8 13.5 15.7 4.2 4.0 -

Inflation(2) 4.7 2.6 2.9 3.2 4.4 3.2 1.4 2.5

Reference Rate 4.25 4.25 4.00 3.50 3.75 4.25 3.25 2.75

Exchange rate, end of period 2.70 2.55 2.80 2.98 3.41 3.36 3.24 3.20-3.25

Exchange rate, (% change) -3.91% -5.56% -9.80% 6.43% 14.43% -1.47% -3.57% -1.23%

Fiscal balance (% GDP) 2.1 2.3 0.9 -0.3 -2.1 -2.6 -3.2 -3.5

Trade balance (US$ Millions) 9,224 6,393 504 -1,509 -2,916 1,888 6,266 7,700

Exports 46,376 47,411 42,861 39,533 34,414 37,020 44,918 47,400

Imports 37,152 41,018 42,356 41,042 37,331 35,132 38,652 39,700

Current account balance (US$ Millions) -2,990 -5,388 -9,387 -8,925 -9,169 -5,303 -1,918 -2,045

(As % GDP) -1.8 -2.8 -4.7 -4.4 -4.8 -2.7 -0.9 -0.9

Net international reserves (US$ Millions) 48,816 63,991 65,663 62,308 61,485 61,686 63,621 66,151

(As % GDP) 29% 34% 33% 31% 32% 32% 30% 29%


Socio-demographic indicators

1 Peru offers the banking system significant growth potential

21(1) CAGR 2005-2016.

Figures using the available data.

Sources: INEI, Apoyo Consultoría

Urban EAP

(Employed and

Unemployed):

13.2 Million

CAGR(1) : 2.89%

Urban:

24.3 Million

Rural:

7.2 Million

Rural EAP

(Employed and

Unemployed):

4.1 Million

CAGR(1) : -0.28%

A + B: 14 %

C: 33 %

D: 35 %

E: 17 % 23%

Total Population (2016): 31.5 million [CAGR(1) 1.25%]

Total Economically Active Population (2016): 17.3 million

[CAGR(1) : 2.01%]

Urban population by socioeconomic level (2016,

% of total households)

Lima: Banked Population by socioeconomic level in

2015 (% of the population)

84%

67%53%

36%27%

16%

33%47%

64%73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

A B C D E

22

1Peru’s average monthly family income has improved mainly in the

low socio-economic segments

Urban Peru: Socioeconomic levels by avg. household income -

2016 Peru: Avg. household income evolution by segment (S/)

Available income includes income for savings and/or loans expenditures.

Source: INEI, Apoyo Consultoría

S/.7,081

S/.3,117

S/.897

S/.4,735

S/.1,794

S/.2,045

S/.497

S/.1,457

S/.225

S/.11,117

S/.4,014

S/.6,529

S/.2,543 S/.1,682

S/.4,036

D E

A B

C

Average monthly family income

Average monthly family available(1)

Average monthly family expenditure

Socioeconomic

segment 2007 2011 2016

2016

(USD)

A 10,090 9,476 11,117 3,421

B 5,389 5,393 6,523 2,007

C 3,047 3,455 3,996 1,230

D 1,683 2,196 2,423 746

E 796 1,143 1,287 396

23

1Demographic window will boost the economy while increasing middle

class

Labor force (% of population) Adults with post-secondary education (%)

Growth of the middle class (% of households)

Source: ENAHO, Macro Research BCP, Apoyo Consultoría

* Estimates.

.

45

52

63

2001 2015 2025

0

20

40

60

80

100

2000 2016 2000 2016

Young adult(21-35 years)

Adult(36-65 years)

No

Yes

Upper class (A)

Consolidated

middle class (B)

Emerging middle

class (C)

Emerging low

class (D)

Low class with

limited resources (E)

2

11

29

37

2011

21

2016

2

13

35

33

17

2021

2

16

36

32

14

50 5441

24

1Peru has registered a significant reduction in its poverty rate in the last

years

Peru: Poverty evolution Lima: monthly average Income by segment (PEN)

Evolution of socioeconomic segments Urban Peru: monthly average spending by segment (PEN)

Source: INEI, Apoyo Consultoría

.

16 16 14 11 11 10 8 6 6 5 4 4 4

42 4035

3126

24 23 21 20 19 18 18 17

59

42

23 22 21

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Extreme Poverty Non-Extreme Poverty

Total Poverty

8,112

10,029

11,633

5,3455,844

6,915

3,4434,029 4,242

2,1002,623 3,041

1,4971,796

2,428

2008 2012 2016

SES A SES B SES C SES D SES E

42%35% 31%

29%31%

30%

20%23% 27%

8% 10% 10%

1% 1% 1%

2008 2012 2016


5,185

6,7007,081

3,876 4,261

4,735

2,4532,832

3,117

1,606 1,8192,045

1,091 1,275 1,457

2008 2012 2016



Peruvian Financial System

26

1 Behavior of Loans and Deposits are in Line with Economy

Asset Quality vs. Domestic Demand and Jobs (% change YoY) Deposits by Currency

Loans by Currency Dollarization (%)

Source: BCRP and SBS as of November 2017.

203

25

-

5

10

15

20

25

30

35

-

50

100

150

200

250

mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17

Volumes in US$BN

Volumes in S/BN

LC FC

173

31

-

5

10

15

20

25

30

35

40

-

20

40

60

80

100

120

140

160

180

200


Volumes in US$BN

Volumes in S/BN

LC FC

28.7

36.8

-

5

10

15

20

25

30

35

40

45

50


Loans Deposits

-3%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

17%

Dic98 Dic00 Dic02 Dic04 Dic06 Dic08 Dic10 Dic12 Dic14 Dic16

Domestic Demand (% YoY) Jobs (Peru Urban % YoY)

PDL

5.60

1.81

4.15

2.11

3.09

BRASILCHILECOLOMBIAMEXICOPERU

27

1The Peruvian Banking System is an Attractive and Underpenetrated

Market

Loans & Deposits Penetration (% of GDP)(1) ATM’s per each 100,000 adults(2)

Past Due Loans / Gross Loans(3) Profitability (%)(4)

43.7%50.6%

92.8%

24.8%

54.6%

39.4% 41.4%

75.1%

26.8%

35.0%

Peru Colombia Chile Mexico Brazil

Gross Loans / GDP Deposits / GDP

Note: Data from different sources may not be entirely comparable.

(1) Source: SBS and Banking Regulatory Agencies of Chile, Colombia, Brazil and Mexico as of December 31, 2016. Data includes each country´s Financial System Loans and Deposits.

(2) Source: Banking Regulatory Agencies of each country as of December 31, 2015.

(3) Source: Asbanc as of June 30, 2017. Number of days to consider credits as expired varies between countries.

(4) Source: Asbanc as of June 30, 2017.

24

32

4439

87

Peru Colombia Chile Mexico Brazil

12.112.111.1

13.9

19.0

BRASILCHILECOLOMBIAMEXICOPERU

BCP Overview

10.61%

19.20% 19.30%20.75%

21.80%23.40%

Bancolombia SantanderChile

Banco deChile

ITAU BBVABancomer

29

2 BCP has One of the Best Banking Platforms in Latin America

Local Loan Market Share (%)(1) Total Gross Loans to Deposits Ratio (%)

Efficiency (%)(2) ROAE (%)

Source: Data from different sources may not be entirely comparable.

(1) Market share is calculated for the Banking System.

(2) (Operating Expenses excluding Other Operating Expenses) / (Gross Financial Margin + Banking Services Commissions + Net Gain on Foreign Exchange Transactions + Net Result from Derivatives Instruments).

39.80% 40.80%43.33%

46.18% 46.30%

52.60%

BBVABancomer

SantanderChile

Banco deChile

ITAU Bancolombia

90.9%

105.5%

122.5% 127.2%134.0%

140.9%

BBVABancomer

ITAU Bancolombia Banco deChile

SantanderChile

31.2%

26.0%

22.7%

17.6%16.4%

13.6%

Bancolombia BBVABancomer

SantanderChile

Banco deChile

ITAU

30

2

Source: SBS as of November 30, 2017.

(1) Market share is calculated for the Peruvian Financial System. BCP unconsolidated figures plus Mibanco, BBVA figures include Financiera Confianza, Scotiabank figures include Crediscotia Financiera, and Interbank

figures include Financiera Oh!.

BCP is the Leader in the Peruvian Financial System

Rank Market Share (%)

Wholesale Loans 1 35%

SME Loans 1 37%

Microfinance Loans 1 29%

Consumer Loans 1 18%

Credit Cards 1 21%

Mortgage Loans 1 31%

Total Loans 1 31%

Demand Deposits 1 32%

Savings Deposits 1 35%

Time Deposits 1 24%

CTS Deposits 1 36%

Total Deposits 1 30%

Leading Financial Institution in Peru(1) #1 in Loans (Market Share %)(1)

#1 in Deposits (Market Share %)(1) Most Profitable Bank (ROAE %)

31%

19%16%

8%

BBVA Scotiabank Interbank

30%

18%

14%

10%


21%19%

16%

20%


31

2

(1) Data considers BCP and Mibanco branches and excludes branches outside of Peru. Source: SBS as of December 31, 2017.

*Includes Edyficar for the period (2010 – 2014)

Sources: BCP, SBS.

Total Branches 752

Branch Network National Coverage(1) BCP’s Network has Expanded Steadily

BCP Stand Alone- Number of transactions – Monthly average

(Millions of transactions)BCP Stand-Alone - Growth of Electronic Transactions (%)(2)

7

29

6

41

7

27

311

9

17

28

36

24

367

5

2

8

4

41

24

16

10

5

5

BCP has a Convenient Distribution Network

+16%

2017

119.3

2016

102.4

2015

97.2

2014

90.8

2013

84.3

2012

79.6

2011

60.8

2010

49.9

2009

43.0

2008

36.6

2017

7%

93%

2016

8%

92%

2015

9%

91%

2014

10%

90%

2013

11%

89%

2012

14%

86%

2011

16%

84%

2010

20%

80%

2009

24%

76%

2008

27%

73%

2007

30%

70%

1993

97%

3%

TellerElectronic channels

+6.0%

2017

9,391

6,310

2,329

2016

9,187

313

6,098

2,345

4,674

1,485

345

431

2015

8,793

321

5,732

2,295

445

2014

8,133

328

5,157

2,226

422

2013

8,419

119

5,820

2,091

389

2012

8,042

118

5,713

1,844

367

2011

6,621

117

424

328

Branches Mibanco*AgentesATMsBranches BCP

32

3

(1) Cost of risk = Annualized provisions for loan losses / Total loans.

(2) Efficiency ratio for the period is calculated by dividing (i) operating expenses deducting other operating expenses by (ii) gross financial margin adding fees and commissions from banking services plus net gains

on foreign exchange transactions plus net result from derivative instruments for the period.

Solid Growth and Profitability – Quarterly Highlights

Profitability

Net income(1): S/ 742 million ▼ 9.6% QoQ and ▼ 2.5% YoY

ROAE: 19.78% ▼ 333bps QoQ and ▼ 294bps YoY

ROAA: 2.17% ▼ 30 bps QoQ and ▼ 20 bps YoY

Loan

portfolio

Nominal growth: ▲ 6.2% QoQ and ▲ 5.6% YoY in quarter-end balances

▲ 3.0% QoQ and ▲ 2.7% YoY in average daily balances

Provisions for loan losses: ▲ 31.3% QoQ and ▼ 3.4% YoY

Cost of risk(1): 1.93% ▲ 40 bps QoQ and ▼ 13 bps YoY

NII & NIM

Net interest income: S/ 1,834 million ▲ 2.6% QoQ and ▲ 1.1% YoY

NIM: 5.59% ▼ 3 bps QoQ and ▼ 33 bps YoY

NIM after provisions: 4.28% ▼ 31 bps QoQ and ▼ 19 bps YoY

Efficiency Efficiency ratio(2): 44.94% ▲ 237 bps QoQ and ▲ 137 bps YoY

Capital CET1 ratio: 11.83% ▼ 10 bps QoQ and ▲ 75 bps YoY

33

3

1. Net income from continuing operations. Net income from discontinued operations was S/0, and S/141 MM as of December 2017, and December 2016, respectively.

2. Cost of risk = Annualized provisions for loan losses / Total loans.

Solid Growth and Profitability – YTD Highlights

Profitability

Net income(1): S/ 3,026 million ▲ 7.8%

ROAE: 20.75% ▼ 95 bps

ROAA: 2.27% ▲ 13 bps

Loan

portfolio

Nominal growth: ▲ 5.6% in quarter-end balances

▲ 2.6% in average daily balances

Provisions for loan losses: ▼ 1.6%

Cost of risk(2): 1.89% ▼ 8 bps

NII & NIM

Net interest income: S/ 7,124 million ▲2.1%

NIM: 5.55% ▲ 1 bps

NIM after provisions: 4.23% ▲ 7 bps

Efficiency Efficiency ratio: 43.33% ▼ 23 bps

Capital CET1 ratio: 11.83% ▲ 85 bps

34

3

(1) From 1Q15 to 4Q15 includes BCP Bolivia, work out unit, and other banking. Since 1Q16 includes work out unit and other banking.

Loan Portfolio

Loan Portfolio Evolution - Q-end vs. Avg. Daily Balances (S/ Millions)

Loan Portfolio Mix – Avg. Daily Balances Loan by currency – Avg. Daily Balances

3Q17

86,327

86,195

2Q17

85,891

85,091

1Q17

86,141

84,733

4Q17

91,573

88,909

4Q16

86,537

86,709

Total Loans avg. Daily balances (+0.5% QoQ)Q-end Total Loans (+1.3% QoQ)

3Q17

0.8%10.2%

42.2%

46.7%

2Q17

0.9%10.1%

41.6%

47.4%

1Q17

0.9%10.0%

41.3%

47.9%

4Q16

0.8%9.7%

41.6%

47.8%

4Q17

0.8%10.2%

42.2%

46.7%

Others (1)MicrolendingRetail BankingWholesale Banking

3Q17

35.6%

64.4%

2Q17

35.6%

64.4%

1Q17

35.0%

65.0%

4Q16

33.9%

66.1%

4Q17

34.8%

65.2%

Foreign CurrencyDomestic currency

35

3 Loan Portfolio Growth

Loan growth contribution QoQ (Average daily balances)

Loan Portfolio Mix – Avg. Daily Balances

Total Loans

4Q17

88,909

US Dollar

appreciation

-231

Mibanco

242

BCP - Retail Banking

1,177

BCP - Wholesale Banking

1,394

Total Loans

3Q17

86,327

Nominal growth +3.0%

Real growth +3.3%

Total Loans

4Q17

88,909

US Dollar

appreciation

-1,100

Mibanco

665

BCP - Retail Banking

1,808

BCP - Wholesale Banking

1,000

Total Loans

4Q16

86,537

Nominal growth +2.7%

Real growth +4.0%

36

3

(1) Average daily balances.

(2) Includes work out unit, and other banking.

Loan portfolio by segment

Loans by Business Segment(1)

Loan portfolio evolution by segment(1)

30%

10% 15% 8% 5% 10% 1%30%

4Q16 16% 5% 9% 14% 8% 5% 10% 1%32%

17% 5% 10% 15% 8% 5% 10% 1%4Q17

3Q17 17% 5%

Corporate

SME - Pyme Consumer

Credit Card Others (2)SME - Business

Middle - Market

Mortgage

Mibanco

Loans Quarter% Part. 4Q17

% nominal change % real change

S/ Millions 4Q16 3Q17 4Q17 QoQ YoY QoQ YoY

Wholesale Banking 41,352 40,331 41,557 46.74% 3.0% 0.5% 3.5% 2.4%

Corporate 27,622 25,899 26,773 30.11% 3.4% -3.1% 3.8% -1.2%

Middle - Market 13,730 14,432 14,784 16.63% 2.4% 7.7% 2.8% 9.6%

Retail Banking 36,019 36,433 37,544 42.23% 3.0% 4.2% 3.2% 5.0%

SME - Business 4,703 4,704 4,877 5.49% 3.7% 3.7% 4.1% 5.7%

SME - Pyme 7,827 8,240 8,664 9.74% 5.1% 10.7% 5.2% 10.9%

Mortgage 12,508 12,745 12,963 14.58% 1.7% 3.6% 1.9% 4.5%

Consumer 6,556 6,514 6,672 7.50% 2.4% 1.8% 2.5% 2.4%

Credit Card 4,425 4,230 4,368 4.91% 3.3% -1.3% 3.4% -0.8%

Mibanco (2) 8,432 8,840 9,078 10.21% 2.7% 7.7% 2.7% 7.9%

Others (3) 734 723 730 0.82% 1.0% -0.5% 1.2% 1.1%

Total 86,537 86,327 88,909 100% 3.0% 2.7% 3.3% 4.0%

49.7% 46.3% 48.3% 46.4%

95.0% 96.5%73.6% 76.1% 84.6% 83.2% 88.5% 86.8% 93.9% 94.3%

50% 54% 52% 54%

5%3%

26% 24% 15% 17% 12% 13% 6% 6%

4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17 4Q16 4Q17

BCP Wholesale Banking BCPSME-Business

BCPSME-Pyme

BCPMortgage

BCPConsumer

BCPCredit Card

Mibanco

PEN USD

37

3

(1) Average daily balances.

(2) Includes work out unit, and other banking.

Loan portfolio by currency

Loan dollarization by segment YoY(1)

Loans Local currency loans (1) (Expressed in million PEN) Foreign currency loans (1) (Expressed in million USD)

S/ Millions 4Q16 3Q17 4Q17 QoQ YoY% Part.

4Q174Q16 3Q17 4Q17 QoQ YoY

% Part.

4Q17

Wholesale Banking 20,571 18,014 19,249 6.9% -6.4% 33.2% 6,155 6,869 6,884 0.2% 11.8% 72.1%

Corporate 13,722 11,118 12,016 8.1% -12.4% 20.7% 4,117 4,550 4,554 0.1% 10.6% 47.7%

Middle - Market 6,849 6,896 7,233 4.9% 5.6% 12.5% 2,038 2,319 2,330 0.5% 14.3% 24.4%

Retail Banking 28,378 28,895 29,831 3.2% 5.1% 51.5% 2,263 2,322 2,380 2.5% 5.2% 24.9%

SME - Business 2,272 2,229 2,262 1.5% -0.4% 3.9% 720 762 807 5.9% 12.1% 8.5%

SME - Pyme 7,438 7,926 8,361 5.5% 12.4% 14.4% 115 97 94 -3.1% -18.3% 1.0%

Mortgage 9,206 9,589 9,867 2.9% 7.2% 17.0% 978 972 955 -1.7% -2.4% 10.0%

Consumer 5,548 5,469 5,550 1.5% 0.0% 9.6% 299 322 346 7.5% 15.7% 3.6%

Credit Card 3,914 3,682 3,791 3.0% -3.1% 6.5% 151 169 178 5.3% 17.9% 1.9%

Mibanco 7,916 8331 8563 2.8% 8.2% 14.8% 153 156 159 1.9% 3.9% 1.7%

Others (2) 307 333 333 0.0% 8.5% 0.6% 126 120 122 1.7% -3.2% 1.3%

Total 57,172 55,573 57,976 4.3% 1.4% 100.0% 8,697 9,467 9,545 0.8% 9.8% 100.0%

5.5% of total loans 14.6% of total loans

38

3 Strong Efficiency Levels and Stable Margins

Source: BCP consolidated figures as of December 31, 2017.

(1) Non-Interest Income: Banking Services Comissions (net) + Net Gain (Loss) on Sale of Securities + Net Gain on Foreign Exchange Transactions + Other Non-Financial Income.

(2) (Operating Expenses – Other Operating Expenses ) / (Gross Financial Margin + Banking Services Commissions + Net Gain on Foreign Exchange Transactions + Net result from derivative instruments).

(3) Net Interest Margin represents net interest income divided by average interest-earning assets.

Net interest income (S/ Millions) Efficiency (%)(2)

Net Interest Margin P&L Breakdown - Variations Sep16 vs. Sep17 (PEN Bn)

1,788

-659

2,447

-2,584

9,565

4Q17

1,834

-673

2,507

3Q17

-2,662

6,981 7,124

Dic-17

+2.6%

9,786

+1.0%

+2.0%

Dic-164Q16

1,815

-666

2,481

Interest Income Interest Expense

4Q16 Dic-16

5.6%5.9%

4.3% 4.2%

5.5%

7.9%

4Q17

5.6%

8.4%

4.5%

Dic-17

8.1%

5.5%

4.2%4.6%

3Q17

8.2%8.4%

NIM on loansNIM after provisionsNIM

+3%-1%

43.6%

Dic-16

43.6%

4Q16

44.9%

4Q173Q17

43.3%42.6%

Dic-17

382,806

Net Income

Dic-16

Oper. And

Other Exp.

& Tax

Non Int.

Income

325

Prov.of

Losses

3,026

Fin.Expense

-286-78

Fin. Income

221

Net Income

Dic-17

39

4

Source: BCP consolidated figures as of December 31, 2017.

(1) (i) PDL Ratio: Past Due Loans (+16 days) / Total Gross Loans; (ii) Ref. & Restr. Ratio: Refinanced + Restructured Loans / Total Gross Loans; (iii) PDL Coverage Ratio: Total Reserve for Loan Losses / Past Due

Loans (+16 days); (iv) Ref. & Restr. Coverage Ratio: Reserve for Loan Losses / (Past Due Loans (+16 days) + Refinance & Restructured Loans); (v) NPL Ratio: Past Due Loans (+16 days) + Ref. & Rest. Ratios.

(2) Source: SBS. BCP unconsolidated figures as of December 31, 2017.

Strong Asset Quality and Ample Coverage Levels

NPL Ratio

3.83%4.13% 4.14% 4.24%

Cost of Risk & Provisions Coverage Ratios (%)(1)

Past Due Loans by Currency (%)BCP Stand Alone - Past Due Loans by Days Overdue (as a % of

Total Loans)(2)

1.87%

1.51%

1.96%

2.45%

2.05%

Cost of Risk

4Q17

428

3Q17

326

2Q17

416

1Q17

519

4Q16

443

Provisions

3Q17

3.97%

1.77%

2Q17

3.81%

1.85%

1Q17

3.84%

1.87%

4Q16

3.49%

1.80%

4Q17

1.73%

3.94%

PENUSD

4.41%

3Q17

2.99

2.46

0.53

2Q17

2.90

2.43

0.47

1Q17

2.94

2.32

0.62

4Q16

2.71

2.22

0.49

4Q17

2.97

2.44

0.53

PDL 90 days overdue

PDL 16-89 days overdue

2.90% 3.14% 3.10% 3.20% 3.16%

0.93%0.99% 1.04% 1.21% 1.08%

161.47%152.54% 158.26% 153.57% 149.16%

122.29% 116.08% 118.52% 111.36% 111.27%

4Q16 1Q17 2Q17 3Q17 4Q17

PDL Ratio Ref. & Restr. Ratio

PDL Coverage Ratio Ref. & Restr. Coverage Ratio

40

4 Cost of Risk by Segment

9.00%

9.56%

9.16%

7.06%

7.28%

7.70%

8.04%

7.35%

8.54%

9.18%

9.71%

8.10%7.95%

8.86%

7.93%

7.56%

7.87%

7.02%

7.57%

8.13%

6.69%6.03%

6.50%

6.88%

6.24%6.02%

5.55%

6.24%5.71%

4.97% 4.94%

4.13%

3.77%

4.59%

3.58%

5.49%

7.08%

5.63%

4.60%4.88%

3.93%

4.27%

3.18%3.37%

3.17%3.35%

5.04%

4.40%

3.78%

4.31%

5.93%

6.55%

7.10%

5.79%5.48%

5.91% 6.02%

5.54%5.86%

6.37%

6.50%

5.19%

4.83%

4.26%

3.70% 3.71%

3.39%

0.98%

0.64%

1.71%

1.08%

1.50%

1.09%0.96%

1.99%

1.55% 1.44%

0.77%1.02%

2.35%

0.94% 0.69%0.57%

1.42%

0.58%

0.76% 0.95%

0.54% 0.53% 0.62%0.88%

0.61%

0.96%0.80%

0.90%

0.50% 0.49%0.22%

0.43%0.56%

0.87%

0.21%0.28% 0.37%

0.25% 0.41%

0.65%

-0.04% 0.21%

0.62%

0.18%0.35%

-0.05%

0.62%

1.28%

0.21% 0.06% 0.13%

-1.00%

1.00%

3.00%

5.00%

7.00%

9.00%

Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sept 17 Dec 17

Credit Card SME - PYME Mibanco Consumer SME - Business Mortgage Wholesale

41

4 Past Due Loans by Segment

9.19%

10.29%

10.73%10.57% 10.61%

11.54%

12.00% 11.91%

11.10%

12.43%

12.91%12.70%

12.41%

13.14%

12.40% 12.44%12.61%

5.76% 5.91%

5.45% 5.04%

4.26% 4.12% 4.12%3.93%

4.17%

4.86%5.02%

4.74%4.65% 4.99%

4.32%4.60%

4.79%

5.58%5.68% 5.61%

6.00%

6.50%

5.42%

4.76%4.68% 4.67%

4.51% 4.39%4.59%

4.56% 4.66% 4.68%4.33%4.59%

4.24%4.09%

4.38%

4.88% 4.96%4.73%

5.21%5.55%

5.29%5.01%

4.49%

5.79%

5.01% 4.89%

4.59%

1.38% 1.48%1.57% 1.61%

1.73% 1.79%1.88% 1.92% 2.10% 2.30%

2.40%2.65% 2.66%

2.89%

3.01%

2.96%

3.14%

2.17% 2.21%2.42%

2.38% 2.35% 2.16%2.44% 2.42%

2.62% 2.71%2.96% 3.07% 3.02% 2.93%

2.92%

2.98%

2.93%

0.25% 0.32% 0.35% 0.32% 0.32% 0.26% 0.28% 0.27% 0.32% 0.28% 0.33% 0.28% 0.29% 0.31% 0.43% 0.48% 0.47%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sept 17 Dec 17

SME - Pyme Credit Card Mibanco SME - Business Mortgage Consumer Wholesale

42

4


Portfolio quality and Cost of risk

SME - Pyme

SME - Business

9.19%10.29%

10.73% 10.57% 10.61% 11.54% 12.00% 11.91%11.10%

12.43% 12.91% 12.70% 12.41% 13.14% 12.40% 12.44% 12.61%11.00%

12.22%12.93% 12.86%

14.17%15.44%

16.08% 15.89%15.06%

16.15% 16.37% 16.08% 15.84%16.67% 16.22% 16.09% 15.73%

7.02%7.57% 8.13%

6.69%6.03%

6.50% 6.88%6.24% 6.02% 5.55%

6.24% 5.71%4.97% 4.94%

4.13% 3.77%4.59%

3.06% 3.18% 3.36% 2.88% 2.76% 2.72% 3.01% 2.79%2.33% 2.75% 2.91% 2.76% 2.19% 2.22%

1.91% 1.80% 2.13%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

S/ Billions

Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Early delinquency (>60 - <150)

4.33%4.59%

4.24% 4.09%4.38%

4.88% 4.96%4.73%

5.21%5.55% 5.29%

5.01%4.49%

5.79%

5.01% 4.89%4.59%

5.11%5.30%

5.05%4.78%

5.06%

5.88%5.91% 5.56%

6.01%6.31%

6.00% 6.07% 5.66%

6.83%

6.31%5.99%

5.76%

0.98%0.64%

1.71%1.08%

1.50%1.09% 0.96%

1.99%1.55% 1.44%

0.77%

1.02%

2.35%

0.94%0.69% 0.57%

1.42%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0


S/ Billions

Loans (Left axis) PDL ratio NPL ratio Cost of risk (1)

43

4



Consumer

Credit Card

2.17% 2.21% 2.42% 2.38% 2.35% 2.16%2.44% 2.42% 2.62% 2.71% 2.96% 3.07% 3.02% 2.93%

2.92% 2.98% 2.93%

4.91% 4.94% 5.05% 5.12%5.34% 5.12%

5.55%

5.60%

5.84%5.82% 5.95%

5.97% 6.03% 6.13%6.40% 6.69%

6.22%5.93%

6.55%7.10%

5.79%5.48% 5.91%

6.02%

5.54%

5.86%

6.37% 6.50%

5.19%

4.83%4.26%

3.70% 3.71%3.39%

2.11%1.91%

2.21% 1.97%1.88% 1.73% 1.95% 1.90% 1.97% 2.10%

2.31%2.06% 1.82%

1.63% 1.66% 1.64%1.44%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0


S/ Billions


5.76% 5.91% 5.45%5.04%

4.26% 4.12% 4.12% 3.93% 4.17%4.86% 5.02% 4.74% 4.65% 4.99%

4.32% 4.60%4.79%

6.62% 6.77%6.19%

5.75%4.94% 4.87% 4.96% 4.85% 5.10%

5.81% 6.06% 5.90% 5.90% 6.35%5.78%

6.05% 6.08%

9.00% 9.56% 9.16%

7.06% 7.28%7.70% 8.04%

7.35%

8.54%9.18%

9.71%

8.10% 7.95%

8.86%7.93%

7.56% 7.87%

3.16%3.54%

3.14% 2.69%2.47% 2.33% 2.44% 2.24%

2.62%2.86% 3.00%

2.62% 2.56% 2.68% 2.44% 2.34%2.92%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0


S/ Billions


44

4



Mortgage

Wholesale

1.38% 1.48% 1.57% 1.61%1.73% 1.79% 1.88% 1.92%

2.10%2.30% 2.40%

2.65% 2.66%2.89%

3.01% 2.96%3.14%

1.49%1.60% 1.69% 1.73%

1.90% 1.97%2.04% 2.10% 2.29%

2.48% 2.57%2.80% 2.81%

3.05% 3.18%3.18%

3.36%

0.58% 0.76%0.95%

0.54% 0.53% 0.62%0.88%

0.61%0.96% 0.80%

0.90% 0.50% 0.49%0.22%

0.43%

0.56%

0.87%

0.62% 0.69%0.79% 0.80%

0.68% 0.67%0.78%

0.81%0.82%

1.02% 1.03%1.16%

0.91% 0.97% 0.88%0.97%

0.87%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0


S/ Billions


0.25%

0.32%

0.35%0.32%

0.32%0.26% 0.28%

0.27%0.32%

0.28%0.33%

0.28% 0.29% 0.31%0.43%

0.48%0.47%

0.29%0.35%

0.37%

0.36%0.42%

0.33% 0.35% 0.34%0.42% 0.44%

0.52% 0.53%0.51%

0.60% 0.63%0.74%

0.66%

0.21%0.28%

0.37%

0.25%

0.41%

0.65%

-0.04%

0.21%

0.62%

0.18%

0.48%

-0.05%

0.62%

1.28%

0.21%

0.06%0.13%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0


S/ Billions

Loans (Left axis) PDL ratio NPL ratio Cost of risk (1)

45

4


(2) Adjusted cost of risk of March 2017 and June 2017 calculated eliminating provisions related to the El Nino weather phenomenon.


Mibanco

5.11%

5.58%

5.68%

5.61%6.00%

6.50%

5.42%

4.76%4.68% 4.67% 4.51%

4.39%

4.59%

4.56% 4.66% 4.68%

6.66%

6.96%

6.76%

6.75%7.00%

7.38%

6.39%

5.81% 5.74% 5.74%5.61% 5.56%

5.75% 5.85% 5.99%6.13%

3.58%

5.49%

7.08%

5.63%4.60%

4.88%

3.93%

4.27%

3.18% 3.37%3.17%

3.35%

5.04%

4.40%

3.78%

4.31%4.60%

3.43%3.74%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

S/ Billions

Loans (Left axis) PDL ratio NPL ratio Cost of risk (1) Adjusted Cost of risk (2)

46

4

Figures include Mibanco’s results.

(1) Includes Trading securities, Property plant and equipment, Due from customer acceptances and Other assets.

(2) Includes Acceptances outstanding, Repurchase Agreements (including that with BCRP) and Other Liabilities.

(3) Includes cattle raising, education, public administration, social services, among others.

Solid and Diversified Balance Sheet

Asset Structure (S/ Billions) Liability & Equity Structure (S/ Billions)

Loan / Deposit Ratio BCP Stand Alone - Total Commercial Loans by Sector (%)

Foreign

Currency47.9% 47.9%

13.1%

20.7%

65.6%

3Q17

134

3.9%

-3.2%

15.9%

19.0%

64.4%

4Q16

127

4.1%

4Q17

140

3.7%

-3.1%-3.2%

11.2%

19.9%

68.0%

Other assets (1)

Reserve for loan losses

Investments

Cash & Due from banks

Gross Loans

48.8%

4Q17

140

11.0%

10.7%

11.1%5.9%

61.3%

3Q17

134

10.9%10.4%

10.7%7.0%

61.0%

4Q16

127

10.8%

12.9%

11.4%6.5%

58.3%

Equity

Other liabilities (2)

Bonds and subordinated notes issued

Due to banks

Deposits and Obligations

47.8% 47.8%48.7%

3Q17

105.5%

79.9%

127.8%

2Q17

106.1%

78.5%

132.4%

1Q17

108.2%

78.6%

136.2%

4Q16

116.7%

83.1%

149.0%

4Q17

136.1%

76.7%

107.1%

Total Loans/Deposits ratio

Loans/Deposits ratio in USD

Loans/Deposits ratio in PEN

9%

1%5%

7%

1%

8%

5%

6%

14%

14%

7%

23%

Others (3)

Fishing

Electricity, Gas and Water

Mining

Agriculture

Leasholds and Real Estate Activities

Construction

Communication, Storage and Transportation

Commerce

Manufacturing

Finance services

Consumer

47

4

(1) Calculated as interest paid/principal outstanding.

(2) Includes bilateral loans, trade loans and repurchase agreements with third parties

Stable and Diversified Funding Base

Evolution of Funding Structure & Cost Funding Structure by currency

Funding Structure by tenure (original term) Funding Structure by tenure (months to maturity)

68%

8%

14%

69%

3Q17

70%

4Q17

8%8%

14%10%

69%

9%9%

4Q16 1Q17

9%

14%

68%

14%

9%7%

14%

2Q17

8%

Bonds and subordinated debtDue to banks and correspondents (2)

DepósitsBCRP Instruments

8%

16%

68%

7%

BCRP InstrumentsBonds and subordinated debt

DepositsDue to banks and correspondents (2)

71%

8%

21%

43%

38%

5%3%3%

8%

From 1 to 2 yearsFrom 3 to 6 months From 2 to 5 yearsFrom 6 to 12 monthsUp to 3 months Greater than 5 years

13%

36%

18%

5%

11%

17%

2.04%2.10% 2.12% 2.12%2.10%

Funding cost (1)

Local Currency Foreign Currency

48

4

(1) In average-daily balances

(2) In quarter-end balances

(3) Time deposits includes certificates of deposit (CDs).

BCP Stand-Alone - Sound Deposits Base

Total Deposits Breakdown(1) (S/ Millions) Deposit Dollarization(1)

Deposits’ Implicit Rate Deposits Consolidated – Evolution and Participation(2)

4Q17

75.0

36%

32%

23%

9%

3Q17

73.2

35%

33%

23%

9%

2Q17

71.6

34%

32%

24%

9%

1Q17

69.8

36%

33%

22%

9%

4Q16

69.8

36%

32%

22%

10%

Demand Deposits

Savings Deposits

Time Deposits (3)

Severance Indemnity Deposits (CTS)

4Q17

49.8%

50.2%

3Q17

51.0%

49.0%

2Q17

52.2%

47.8%

1Q17

51.7%

48.3%

4Q16

51.7%

48.3%

USDPEN

1.05%

4Q17

0.53%

1.56%

3Q17

0.98%

0.42%

1.56%

2Q17

1.02%

0.45%

1.64%

1Q17

0.99%

0.37%

1.66%

4Q16

0.99%

0.33%

1.71%

TotalUSDPEN

S/. Millions 4Q16 3Q17 4Q17 QoQ YoY

BCP Peru 67,905 74,692 78,085 4.54% 14.99%

Mibanco 6,452 7,021 7,485 6.61% 16.01%

Eliminaciones -32 -37 -64 72.97% 100.00%

BCP

Consolidated74,325 81,676 85,506 4.69% 15.04%

Mibanco

9%

BCP Peru

91%

49

4

(1) It is important to note, that 100% of Severance indemnity deposits (CTS) come from individuals.

BCP Stand-Alone - Deposits by business segment(1)

Total Deposits Savings Deposits

Time Deposits Demand Deposits

21%

PEN

20%

Total

19%

59%

USD

21%

61%

21%

63%

16%

RetailCorporate Middle-market

Total

95%

0%

98% 97%

0%

USD

1%0%

5%

PEN

3%

Middle-marketCorporate Retail

27%

38% 35%

37%41%

25%

PEN USD

32%

39%

Total

26%

Middle-marketCorporate Retail

USD

32%

40%

29%

28%

31%

30%

Total

41%

PEN

41%

28%

Corporate Middle-market Retail

50

4

(1) Call date – 10 years

(2) Result after the exchange of notes with the BCP26.

(3) Result after reopening for US$170,000,000 in April 2013 and US$200,000,000 in January 2014.



BCP Stand-Alone - Bonds and subordinated debt

Breakdown of international bonds

Bond Issue date Due date Tenure (years) CurrencyIssued Amount

Original Currency

(000)

Outstanding

Amount (S/000)Coupon rate

Hybrid 01/11/2009 06/11/19(1) 60(1) USD 250,000 810,250 9.75%

Subordinated(2) 07/11/2006 07/11/2021 15 USD 2,960 9,593 6.95%

Subordinated 16/09/2011 16/09/21(1) 15(1) USD 476,120 1,543,105 6.88%

Subordinated(3) 24/04/2012 24/04/22(1) 15(1) USD 720,000 2,333,520 6.13%

Corporate 16/09/2010 16/09/2020 10 USD 800,000 2,592,800 5.38%

Corporate(5) 01/04/2013 01/04/2023 10 USD 716,301 2,321,532 4.25%

Corporate 09/07/2014 09/01/2018 4 USD 230,154 745,929 2.75%

Corporate 25/10/2016 25/10/2019 3 USD 300,000 972,300 2.25%

Corporate 31/10/2017 30/10/2020 3 PEN 2,000,000 2,000,000 4.85%

Total 13,329,029

51

5

(1) Peru GAAP.

(2) Regulatory Capital / Risk-weighted assets.

(3) Tier 1 / Risk-weighted assets. Tier 1 = Capital + Legal and other capital Reserves + Accumulated earnings with capitalization agreement + Unrealized profit and net income in subsidiaries - Goodwill - (0.5 x Investment in Subsidiaries) + Perpetual subordinated

debt (maximum amount that can be included is 17.65% of Capital + Reserves + Accumulated earnings with capitalization agreement + Unrealized profit and net income in subsidiaries - Goodwill).

(4) Common Equity Tier I = Capital + Reserves – 100% of applicable deductions (investment in subsidiaries, goodwill, intangibles and deferred tax that rely on future profitability) + retained earnings + unrealized gains.

Disciplined and Conservative Capital Management

BCP at Basel II BCP at Basel III

Common Equity Tier 1 ratio – December 2017 Common Equity Tier 1 ratio – September 2017

4Q17

15.05%

10.84%

3Q17

16.35%

11.47%

2Q17

16.71%

11.75%

1Q17

16.73%

11.76%

4Q16

15.35%

10.41%

BIS ratio (2)Tier 1 ratio (3)

4Q17

11.83%

3Q17

11.93%

2Q17

11.54%

1Q17

10.92%

4Q16

11.08%

Common Equity Tier 1 ratio (4)

CET1 (3Q17)

11.93%

Investments

in

subsidiaries

-1.44%

Goodwill and

intangibles

-0.72%

Unrealized

gains (losses)

0.06%

Retained

earnings

2.48%

Capital and

reserves

11.55%

CET1 (4Q17)

11.83%

Investments

in

subsidiaries

-1.47%

Goodwill and

intangibles

-0.72%

Unrealized

gains (losses)

0.07%

Retained

earnings

3.03%

Capital and

reserves

10.91%

52

6 Comprehensive Business Strategy

Motivated Employees

Our employees are the engine of our

organization. For them, we have set ourselves

the challenge of becoming the best option to

work in the country.

Happy Customers

We want our customers to be at the center of

our decisions and to live a unique brand

experience.

For them we renew our image and our promise

and we will work until we become the “Bank

most focused on its Clients".

Outstanding Risk Management

We have led the Peruvian market for 126 years,

being a model in risk management.

Efficient Growth

We aim to continue growing, but efficiently,

guaranteeing our leadership in the market for

the next 126 years.

53

6 Strong Governance Focus

Governance structure Board independence

General Shareholder’s Meeting

Chairman

Vice - Chairman

Directors

Dionisio Romero Paoletti

Raimundo Morales Dasso*

Roque Benavides Ganoza*

Barbara Bruce Ventura*

Benedicto Cigueñas Guevara*

Fernando Fort Marie

Martin Perez Monteverde (Deputy)

Eduardo Hochschild Beeck*

Luis Montero Aramburu*

Juan Carlos Verme Giannoni*

Patricia Lizárraga Guthertz*

Luis Enrique Romero Belismelis

Board Committees

Independent internal and external audit

Board of Directors

Board of directors tenure

* Independent directors.

0 1 2 3 4 5 6

0-5 years

5-10 years

10+ years

7

5 Independent

Dependent

Appendix

55(1) Date is updated when there is a change in the outlook or rating.

BCP Stand-Alone - Ratings

Local Credit Rating Agencies International Credit Rating Agencies

Bank

AAI Equilibrium

Date of last review jun-17 jun-17

Institution A+ A+

Long Term Debt

AAI Equilibrium

Corporate Bonds AAA AAA

Mortgage Bonds AAA

Leasing Bonds AAA AAA

Long Term Deposits AAA AAA

Short Term Debt

AAI Equilibrium

Short Term Deposits CP-1+ EQL 1+

CDs CP-1+ EQL 1+

Capital Debt

AAI Equilibrium

Subordinated Tier II AA+ AA+

Bank

Fitch S&P Moody´s

Date of last review(1) may-17 oct-17 jun-15

Outlook Stable Stable Stable

Issuer rating BBB+ BBB+ Baa1

Foreign Currency

Fitch S&P Moody´s

Long term BBB+ BBB+ Baa1

Short term F2 A-2 P-2

Local Currency

Fitch S&P Moody´s

Long term BBB+ BBB+ Baa1

Short term F2 A-2 P-2

Outstanding Debt (144A/RegS)

Fitch S&P Moody´s

Subordinated BCP 2021 BBB BBB Baa3



Junior Subordinated 2069 BB- BB+

Senior BCP 2019 (US$

300MM)BBB+ BBB+ Baa1





Senior BCP 2020 (S/ 2000MM) BBB+ BBB+ Baa1

56

Credicorp’s Organizational Structure

Colombia

PeruBolivia

100.0% 97.7

%

99.9

%

98.7

%

100.0% 100.0%

Inversiones

Credicorp Bolivia

S.A.

Credicorp Capital

Securities Inc.

Chile

Inversiones IMT

S.A.

Source: Credicorp as of December 31, 2017.

57

Credicorp: 128 years of History

Source: Credicorp as of December 31, 2017.

ASHC is created

1889 1920 1941 1981 1987 1993 1995 1997 1998 1999 2002 2003 2005 2006 2009 2010 2011 2012 2014 2016 2017

BC

PC

red

ico

rp

Founded as

Banco Italiano

Changes its name to

Banco de Credito del

Peru

It becomes

Peru’s main

financial

institution

BCP acquires Banco

Popular de Bolivia

Nationalization

attempt

Credicorp is created

and listed in NYSE

(NYSE: BAP)

Creation of Pacifico Vida

Crisis and restructure of the

financial system. Reduction

of number of banks

Creation of Pacifico Health

Release of the new

corporate identity

Acquisition of

Financiera Edyficar

BCP acquires

BSCH Peru

AFP Prima is

created

AFP Union

Vida is acquired

Acquisition ALICO’s

stake in PPS and

PV

Vertical integration in

health insurance

business

Private Equity

business with Carlyle

Group

Insurance brokerage

business with Willis

Investment Banking

Acquisition of

Mibanco

58

Selected Financial Information

Source: BCP consolidated figures as of December 31, 2017. Peru GAAP unaudited.

Income Statement Summary

(PEN in millions) 4Q16 3Q17 4Q17 Dic-16 Dic-17 YoY Growth

Financial income 2,481 2,447 2,507 9,565 9,786 2.31%

Financial expense -666 -659 -673 -2,584 -2,662 3.02%

Gross financial margin 1,815 1,788 1,834 6,981 7,124 2.05%

Provision for loan losses -443 -326 -428 -1,726 -1,688 -2.20%

Gross financial margin after provision for loan

losses 1,372 1,462 1,406 5,255 5,436 3.44%

Gain (loss) for exchange difference 0.8 2 6 -29 16 -155.17%

Net financial margin 1,372 1,464 1,412 5,226 5,452 4.32%

Fees and commissions from banking services 564 589 612 2,204 2,337 6.03%

Net results from derivatives 43 19 18 32 110 243.75%

Net gains (loss) from sales of securities 2 13 7 36 63 75.00%

Net gains on foreign exchange transactions 161 152 164 642 621 -3.27%

Other income 21 18 48 101 164 62.38%

Operating expenses -1,176 -1,117 -1,226 -4,447 -4,581 3.01%

Income before workers’ profit sharing and

income tax 987 1,138 1,035 3,794 4,166 9.80%

Income tax -226 -317 -293 -988 -1,140 15.38%

Net income from continuing operations 761 821 742 2,806 3,026 7.84%

Net income from discontinuing operations - - - 141 - -100.00%

Net income 761 821 742 2,947 3,026 2.68%

59



Balance Sheet Summary

(PEN in millions) 4Q16 3Q17 4Q17 YoY Growth

Cash and due from banks and interbank funds 25,373 25,401 28,880 13.82%

Investments at fair value through profit or loss and available-for-

sale investments, net 14,245 21,209 18,257 28.16%

Gross loans 86,709 86,195 91,573 5.61%

Allowance for loan losses -4,063 -4,231 -4,322 6.37%

Other assets 5,166 5,233 5,186 0.39%

Total assets 127,430 133,807 139,574 9.53%

Deposits and obligations 74,325 81,676 85,506 15.04%

Due to banks, correspondents and other entities, and interbank

funds 8,297 9,303 8,264 -0.40%

Bonds and subordinated notes issued 14,552 14,254 15,451 6.18%

Other liabilities 16,486 13,951 14,961 -9.25%

Total liabilities 113,660 119,184 124,182 9.26%

Shareholders’ equity attributable to BCP equity holders 13,770 14,623 15,392 11.78%

60



Main Ratios

(%) 4Q16 3Q17 4Q17 Dic-16 Dic-17 YoY Growth

ROAE 22.71% 23.11% 19.78% 21.70% 20.75% -0.9%

ROAA 2.37% 2.48% 2.17% 2.13% 2.27% 0.1%

Cost of risk 2.05% 1.52% 1.93% 1.98% 1.89% -0.1%

Past due loans ratio 2.90% 3.20% 3.160% 9.1%

Non-performing loans ratio 3.83% 4.41% 4.24% 10.7%

PDL Coverage ratio 161.47% 153.57% 149.16% -7.6%

NPL Coverage ratio 122.29% 111.36% 111.27% -9.0%

Net interest margin 5.92% 5.62% 5.59% 5.54% 5.55% 0.0%

Net interest margin after provisions 4.47% 4.59% 4.28% 4.17% 4.23% 0.1%

Efficiency 43.57% 42.57% 44.94% 43.56% 43.33% -0.2%

CET1 ratio 11.08% 11.93% 11.83% 6.8%

BIS ratio 15.35% 16.35% 15.05% -1.9%

61

Board of Directors

*Independent directors

Source: BCP as of December 31, 2017

(1) Confederacion Nacional de Instituciones Empresariales Privadas.

Dionisio

Romero Paoletti

Raimundo Morales

Dasso

Roque

Benavides

Ganoza*

Benedicto

Cigüeñas

Guevara*

Luis Enrique

Romero

Martin Perez

Monteverde

President

Member of the Board since 2003, and Chairman since

2009.

Vice President

From October 1990 until March 2008, served as the

Bank’s General Manager. Serves as Deputy

Chairman of the Board of Credicorp and several of its

subsidiaries

Director and the

Executive President of

Compañia de Minas

Buenaventura S.A. and

current Chairman of

CONFIEP(1)

Former CFO of

BCP (from 1992 to

2004)

Former Vice-

President of the

board of Alicorp

S.A.A.S Serves as

Director of various

companies from the

Romero Group.

Serves as Deputy

Chairman. Director

since 2014. Former

Minister of State in the

Portfolio of Foreign

Trade and Tourism.

Eduardo

Hochschild

Beeck*

Chairman of the board

of Hochschild Mining &

Cementos Pacasmayo

and member of the

board of various

companies

Luis

Montero

Aramburú*

Director of the Bank

since 2015 with 40

years of experience

in the financial

sector

Director of the Bank

since 1990 and Director

of Credicorp since 1995

Patricia

Lizárraga

Guthertz*

Has over 25 years of

experience in M&A,

capital markets,

private equity and

valuation. Joined the

Board this year.

Fernando

Fort Marie

Director since 1990 and

Director of Credicorp

since 1999. He serves as

Director at Inversiones

Centenario, among

others.

Barbara

Bruce

Ventura*

Director since 2015 with

broad experience

leading Oil & Gas

companies

Juan Carlos

Verme

Giannoni*

62

Experienced Management Team

Source: BCP as of December 31, 2017.

Fernando

Dasso

Gianfranco

Ferrari

Pedro

Rubio

Percy

Urteaga

Reynaldo

Llosa

Wholesale Banking Central

Manager

▪ Joined BCP in 1985.

▪ Industrial engineer with a degree

from North Carolina State

University.

Retail Banking and Wealth

Management Central Manager

▪ Joined the group in 2003.

▪ MBA from IESE.

Planning and Finance Central

Manager (CFO)


▪ MBA from Wharton School of

Business.

Risk Central Manager


▪ MBA from J.L. Kellogg Graduate

School of Management.

General Manager


▪ MBA from J.L. Kellogg Graduate

School of Management.

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