Credicorp (BAP) 8 Nov 242024 Q3 Earnings call transcript

Good morning, everyone. I would like to welcome you to the Credicorp Limited Third Quarter 2024 Conference Call. A slide presentation will accompany today's webcast, which is available in the Investors section of Credicorp's website. Today's conference call is being recorded. [Operator Instructions] Now it is my pleasure to turn the conference call over to Credicord's IRR -- IRO, Milagros Ciguenas.

begin. now may You

good and morning, you, everyone. Thank

Francesca today's Executive Officer; on Participating Risk the also Officer; call Rios, Mibanco's Officer; Chief will Chief our in be will session Financial Ferrari, Carlos Gianfranco Q&A Chief and Chief Officer. Innovation Cesar be Financial Speaking Raffo, Chief Alejandro Officer. Sotelo, our Perez-Reyes,

reflect update current and we I improved release will the SEC. would Perez-Reyes, macro with results which revised a safe our of subject call our Today's no statements. key or please changed begin and followed forward-looking number macro statements proceed, and like financial or economic XXXX. Gianfranco, recent statements will to following assume of indicators, go Ferrari beliefs of Alejandro the more any events our filings and environment, the Before We uncertainties, refer will based call who circumstances. Gianfranco statements forward-looking are with expectations on development, to outlook a management's and provide analysis quarterly the earnings on harbor of recent performance a section are ahead. you to to new make and detailed forward-looking contain brief for overview risks and remarks the to I or revise obligation by

to we us Milagros. quarter. Good allowing this the in saw first of momentum a us joining third PEN half bottom positive quarter, line you, Thank into million The morning, everyone. for record Thank today. X,XXX continued the high you deliver

macroeconomic stable importantly, across environment, This only the implemented relatively date. a withdrawals a captured payout distributed XX.X% dividend we've strategic by climate performance by political to more from inflows driven we initiatives a dividend pension was more achieving not and organization. equity but the total Additionally, special an improving of

external XXXX U.S. GDP X.X% recognize projections we materializing and macroeconomic our October, rose are competitive have reached signs X the cause these benefits tensions X.X% for the geopolitical in performance further in strengths factors. East, that and decoupling inflection businesses, we the of consistently elections recovery level from Peru. a to point growth pivotal our the Though of for our maintaining X%, lowest in from the volatility. In was that nearly across Middle could our X% which the on in initiatives where region of ongoing results We Despite reinforcing inflation in some are previous up do continuing and years. developments the of XXXX month,

of to As such, it range X% remains X%. target within Bank's the Central

revenue risk-adjusted recovery streams generating for prudently with demand the loan new goal the of we At current managing by slower in which the time, Our retail and diversify private remain confidence, committed approach business than sector is expected XX% given investment strategy impacts particularly the loans. the in businesses of is to XXXX same environment. This wholesale important revenues [indiscernible] from to growth.

of Importantly, supported a withdrawal. seeing pension liquidity from additional we are by reduction [indiscernible]

of dividend propositions, business during transformative and we accelerating technologies. focused our strategic value [indiscernible] on truly adoption new penetration update, untapped discussed As the exploring remain segments with recent

financial customer with alignment While approach, leading strategic we do the and shaping [indiscernible] experience our to in remain goals committed disciplined ensuring with so the way financial the a in we will future, management. products

productive enhancing front. investments, optimistic this September, marking regulatory of the long-term to Peru We're significant about infrastructure retirees. security and in to growth. enacted a debate, ability system's channel on national moving financial pension reform savings strengthen Now driving potential economic the towards system After years into for to political step

authorization, to Tenpo, Market a our Chile. digital provisional the to new from a market, turning operate financial Bank bank recent Financial towards a milestone expect the first market in October full we After entity Chile. This our Tenpo as Starting third in Before XXXX, from the digital operational becoming quarter happen into banking few we establishing presence advances in received let Tenpo XX quickly results, Chilean securing a Chile. Chilean Credicorp corporate developments. is me competitive named which to approval expansion discuss significant strong a [indiscernible] to Commission with create in on

to BCP obtaining steps of Next markets position a [indiscernible] the and Chief region. our in we card [indiscernible] our bank focus become as reaffirming resigned to has of Tenpo for from leading our goal and Furthermore, the ecosystem America. Officer, the Latin and Raffo, at financial are financial in Peru the to on the revolutionizing exclusively involved General Innovation operational her credit authorizations existence CMF. and continue Francesca from commitment Manager innovation innovation transformation

acquisition Lastly, October in the of by on stake The strengthens health Peru. Banmedica, the venture services. that of with and medical financial X XX, private corporate I'm economy businesses: our and that pleased this remaining Credicorp's medical the ability creating insurance advancing improving XX% to joint acquisition while access health includes and announced insurance, inclusion employees insurance sustainable for we care [indiscernible] inclusive to a more share in fulfill aspiration

clients continued a with provisions. share, [indiscernible] witnessing significant our our financial We dividend declare from contemplating our strengthened in investments NIM for results. and our delivered allowed position our driven interest and innovation supported by lower in reflecting plans XX benefits funding and also digital us Banking ROE moats, while leading and Turning promote solvency insurance to a along contraction diversified PEN activities a and low-cost high-level sustainable management enhancing revenue special third disciplined capabilities. competitive strong quarter of Universal growth. We're now a with our by recovering inclusion. rate relationship economy. and strategy We to improved, current streams primarily of per Notably, Risk-adjusted XX.X%, elevate

growth economic a driven ahead, learnings we for the measures monitoring, expectations our and and origination, by taken of and improving, maintain GDP specific for XXXX. Mibanco's this will and Looking expect both rescaling outlook processes. the overall X% recovery collection performance regarding is year similar

our XX% structural further for achieve evaluating continually management medium of to improvements risk opportunities and ROE. operational are target We

remain we progress, updated. We given Mibanco, market long-term you make committed market potential by we growth to penetration. the keep will the low of served its As

-- and insights both potential of increasing Yape the Additionally, between companies. by we enhanced amounts [indiscernible] are seeing collected data massive Mibanco for synergies from

now will our Alejandro, environment, will operating who detail the I the results. over Alejandro? and further turn into macro businesses consolidated our each go on of to call

Thank you, Gianfranco, and good everyone. morning,

still As growth resilience Gianfranco risk, base. mentioned, loan operating a financial results, the of cost we including which an net diversified performance power and record This of attest improving revenue Credicorp's an delivered to environment achieved strong of businesses of income. overall despite negative high our and but the elevated and was

measures on emphasize recent Results favorable shift by results quarter, to I in increased financial levels in recent focus activity, risk have fund partly the transactional the quarter-over-quarter been positively As I trends. discuss from across system, the liquidity highlights impacted of the attributable withdrawals. uptick and management to results will an pension

funding loan it primarily contracted daily quality, liquidity contraction impacted and quarter-end was balances. at and X% funding, costs the While more measured positively increased X.X% amid by by in corporate average loans driven guidance. This also exploration BCP amortizations, asset regional transactional. Loan balances and in restricted Mibanco,

card fell led points banking dropped in primarily and Provisions On primarily improved. basis the NPL contraction at At the credit Mibanco. by BCP, was corporate, to the ratio and XX.X%, and The Mibanco. driven retail improved the driven by segments. hand, consumer BCP quality BCP other payment X.X%, NPL asset by XX performance

now of margins cost [indiscernible] XX.X% net growth driven delivered the of interest represent result, a by X.X%. income interest expenses. with and primarily a fell increasing was risk to the continue decrease mix stronger Low cost in enter X.X%. We funding by base. deposits This in the As to

income this As Bolivia. Fee a transfer changes XX increased to impacted quarter at service contracted stand as income X.X%. businesses regulatory X.X%. Noninterest NIM result, basis the at contracted foreign points BCP

activity BCP and rose through Yape. transactions Bolivia, credit strong from on transactional contracted BCP XX.X%. X.X%, at Gains cards cards, However, benefiting excluding FX fee income debit

However, volumes. excluding by grew they good Bolivia, boosted X.X%, increased by BCP

reflecting risk cost X.X%, XX.X%. in capital Lastly, [indiscernible] active this insurance dynamics, and in an while quarter, management disciplined we the reinsurance by cumulative control results the maintaining all, aforementioned underwriting On terms, business. All less revenue at ROE ROE stood levels. favorable results XX.X% delivered supported sound fell

range Peru's X.X% coming the in of export quarters, propelled improved coupled expectations provide particularly lower to with for driven the at the activity investments it historical period, September, of growth year. In have for expected expected the X% GDP Notably, years. is rate for and trade its to to prices, is import Bank quarterly X.X%. Favorable third trends trend if prices, investment. than growth to August. the highs. the more and the the in Central remained please. growth approximately for rate economy recover. have growth continued highest a Next According most slide, have on year-over-year economy mining higher tailwind to optimistic in July In and X have bringing same non-primary by to quarter, accelerated This commodity average in slow grew slightly, Economic GDP down

year week be year Asia its phase GDP institutional reduce X next economic a Peru economic reaffirm new XXXX. is period. Recently, meetings XXXX option X.X% Asia pandemic and macro Fitch to to times Considering port at our this in reaffirmed GDP of financial projected notches during XX Moody Pacific reforms by above about boost Port and respectively. according Bank. in inaugurated we The sound agencies emphasized forecast investment growth will during and X% operation Economic the has by in credit Asia. All Coast between America of trade the dynamics growth years, first period concerns routes Chancay supported first has The the Central recovery to shipping and Moody's has to stable. Fitch this the Both of within This X Cooperation rising outlook that alleviated Peru's stability. improvement expect XX potential of West by Meanwhile, best political South upgraded economic year-over-year and have for development, Peru's months. similar preserve growth, rating, constitutes noted medium-term to efficiency the XX% recent grade, policymaking these XX the and for stability. driven has and days. also from the X investment negative rate the excluding This the in the transform broad to

stands The [indiscernible] [indiscernible] policy its please. a September. pandemic, by Its point basis [indiscernible]. Next slide, recently followed reduction XX first XX Federal point a the with since results basis

While will federal on to Consequently, perceive. the depend as trajectory regarding their likely the expected, is cuts rate government new particularly volatility dollar in economy remains are pace, policies. uncertainty

policy. target [indiscernible] has X%, remained the been Peru throughout Central coming the the and above to which expected rate follow is range, the X% comfortably as our continues through level Bank X.X% the upper and half approaches first between to rate The target more between year-over-year inflation recently. of Colombia, Since to approach of while next the September. continues in core to This Central pursue neutral Bank's within of year. In inflation in restricted during rate inflation year is be the in slowed is range limit X%. April, adopted continue X% months The

bulk Finally, towards in the reduced the as moves monetary level gradually the have cash pace Central an already infra has the occurred. and Bank of Chile, of easing, rate

the offsetting the the year-to-date Since to basis rate XXX points. July positive impact copper XXXX, has fallen country's price. depreciate This currency has higher XX% led nearly policy of

slide, Next please.

quarter, as detect risk management profitability and high in a inflows by in [indiscernible]. levels lack the been of client rose pension boosted This improvements measures reduction from cost to liquidity funding, performance [indiscernible] has in and individuals BCP's on of the payment

average [indiscernible] clients sector, in [indiscernible]. NPLs loan liquidity a the dynamics mainly a Banking, liquidity loan loans operation. by in real rescheduling driven quarter-over-quarter After monitoring consumer in balances repayments estate collections Key X.X% by by from and corporate daily processes reduction from we total sector which long-term credit commercial fell their segment. in X.X% construction excess and client [indiscernible]. who the paid fell client measured and fueled Wholesale individuals a large improvements corporate the by origination, included: cards, by leverage and driven raised

fell stand of [indiscernible]. of portfolio by loan in rose liquidity the and the In transactions clients. within with in sale in structure a in driven in mainly was core strengthening at basis increased NIM banking. [indiscernible]. In and repayments performance a the XX across in individuals, within refinancing X basis contraction and our [indiscernible] the newer driven quarter and higher by loans provisional fact by higher contraction primarily income ramped aided secondarily primary the weight particularly reflected vintages results, low-cost provisions stand strategy an consumer reflects [indiscernible] from that and rose were banking income via up by rescheduling relationships Other our funding cards, retail debt to total provisions of In points payment healthier debit credit after points terms line fee X.X%, to rose, less of the and improvement X.X%. [indiscernible] The that cards payments newer X.X%, grew risk in their at by primarily [indiscernible]. Cost SME, from fees and in last healthier vintages weight uptick credit an in

Regarding an cost. Other XX.X%, growth. uptick posted by in year-over-year dynamics, as has XX.X% mainly income interest I transactional a drop an NII would upward level. by has other BCP's of like to to increase business the funding assets, and to income greatly highlight contributed trend ratio begun where rose core [indiscernible] in income by in generation. income core transactional the illustrated Yape rose by in fueled increasingly fee the

a stood disruption, income BCP's on In XX% expenses contribution to year-to-date. ROE operating positive improve to system Meanwhile, continues usage ratio year-to-date channels. BCP digital at at rose via the the driven basis, spending quarter BCP's and licenses, leverage. XX.X%, third mainly XX.X% [indiscernible] increased by transactions XX.X%. standing through On XX.X% expenses in growth of efficiency infrastructure rose in context, Operating efficiency operating and personnel this context grew and to

XX.X The average XX active remain Next us These are this our aspiration towards well expenses please. per of month. on This on of Yape users context, regional million way accelerate, continue control. [indiscernible] In slide, XXXX. transactions mark. continued revenues by XX to while number making under put million users this to [indiscernible] grow

aspiration last Credicorp's for revenue track active active significantly provisions. realizing that to from initiatives PEN we revenues on contribute the quarter, X.X achievement, are after ensuring With expenditures this this end further to of users users. drastic At reached per decoupling of our

business the potential [indiscernible] Yape Income for refueled businesses. this as going mentioned is of to in offers Xx services forward, our growth was value-added generation [indiscernible] revenue a with growing [indiscernible]. upstream quarter by which

transactions X.Xx since risen the payment XXXX. bill have Additionally, quarter third at of

loans achieving exponentially. September, Within loan received mainly a of maintaining grow of system important loan are we Yape. X.X the is X PEN are borrowers the on [indiscernible]. XX% to end and revenues to with first in disbursement deferred the great million loans while their from financial million aspiration business of through to to financial clients XXXX It our [indiscernible], continue [indiscernible] disbursed note the line, that risk aforementioned while By had track

marketplace customer grown our been is which a Finally, bolstering business volume, year-over-year, in has This in has [indiscernible]. engagement. merchant gross X.Xx lever the reflected mainly

mainly daily offset new Mibanco's faster This its partially fell the measures Mibanco, NPL improving loans. to ticket, origination slide, X.X% a ratio average a ticket the yield in balances basis, of thanks was small than impacted stricter total On Next disbursements most by higher which policies. in growth is please. in drop management At reflects taken. loans by at pace in peers, a measured risk quarter-over-quarter contraction higher loans,

after the XX the rate to the points Despite growth funding due loans, basis XX.X%, in in drop rose primarily to cost of the NIM funding decline.

management This fell to performance a debt facilities of in highlight overdue stand by collection and X%, fall was to I and cost a the loans. in in in terms of origination points portfolio to evolution release in guidance, year-over-year XXX In by June like of NPL quality, driven at fueled July basis tighter this adjustments reduction improvement by would payment year. Mibanco X.X%. From The the perspective, to led the of [indiscernible]. improvement resilience debt risk

not this basis helped quarter and remain loan results to with year-to-date profitability help risk coupled Mibanco's X.X% in recent a to to contraction. growth pricing continue and [indiscernible] recover strategic at year-to-date. active under rose the contribution us X.X% dynamics Mibanco's to drive [indiscernible] and trend, healthy XX.X%. In a to cost risk funding, level. Even expenses on context, portfolio at and efficiency management, These [indiscernible]. [indiscernible] efficiency slowdown NIM [indiscernible] stood ROE though of as sustain third been to measures growth stood Our profitability decrease strengthening positive a cost control positive management loan risk has of should yield [indiscernible]. control

attributable This to medical please. from Pacifico and Profitability slide, insurance strength the services [indiscernible] Next performance strong to favorable corporate was health be at Grupo XX.X%. standing ROE at business. with solid a and investment continued

higher results distribution more insurance dropped [indiscernible]. that due opportunity XX-year insurance lines. started a particularly a Net partnership worth we for quarter-over-quarter back It is great in in this for deterioration represents a partnership of products. insurance to of X% income, underwriting facilitate Falabella quarter, the claims, This however, to highlighting access the on with credit to

a line base a From products net year-over-year year's with by perspective, last difference. dropped This [indiscernible] XX%. mainly credit lower associated driven effect income the assistance and decline issuance driven from and was medical exchange results one-off by net gain and [indiscernible]

level of This quarter's is expect deliver to [indiscernible]. representative we sustainable ROE profitability a

Next slide, please.

In transaction the acquire [indiscernible] we health services is insurance line expand address to Banmedica producing The subject Empresas software an PEN with transaction conditions. reached day standard last in private joint with Now medical announced includes and XX% earnings the value and venture from acquisition presence to Seguros. strategy in accreted Pacifico The health to markets, stake agreement million to X,XXX interest Banmedica’'s and is XX% corporate week. Credicorp I insurance, our our want our stands at X. in insurance and regulatory businesses, other approvals and to

like X aspects would moves. this I to strategic underscore of key

care digits, opportunity. in potential in growth hospital in significant The insurance sector Similarly, is pointing penetration only and private health bed the [indiscernible]. per out insurance corporate with underserved the a X.X X,XXX sectors remains to low First, single significant both [indiscernible] Peru. growth

business maintaining our a aim hedge increasing our while portfolio. to a in strategic proposition participation deliver comprehensive by we both value sectors, to Second, across clients

over sectors medical proven years holds offering and insurance in deep Credicorp these expertise a XX track health service. years and Third, XX record in with

health and to products capture services and strategically value commitment this summary, sectors. clients in natural and shareholders. opportunities a the progression high-quality exceptional is delivering growth reinforcing for acquisition In us has continue and insurance It Credicorp, care for our positioned to

investment Profitability sound at XX.X%. activities capital favorable standing and please. namely to within performance markets. management, was management business growth our asset and This business advisory AUM. benefiting are slide, from in in Next and transactional with sales remains activity [indiscernible], attributable increased units management ROE wealth These

[indiscernible] attributable capital however, [indiscernible] net and Difficulty] less year-over-year quarter-over-quarter. led Net XX% unit drop primarily our XX% primarily registered basis, with discontinued to which On decrease rose a results. our to by a business. [Technical was favorable business income, finance markets associated income This corporate was

while it speaker ladies me, stand by lost The and reconnect. we speakers for back. our everyone. you line. are gentlemen, Pardon we connection Thank Please your appears have patience. Hello, to

left continue Apologies any for will right we inconvenience. where we off. So

Yes.

Sorry for evolution technical of of I'm part from on difficulties. restart the going XX. the to consolidated Slide the Credicorp

the beginning So balance quarter-over-quarter for dynamics evolution. the sheet cards with for credit consolidated

yield the equivalents grew Loan boosted which On loans. and previously as at assets individuals Mibanco, liquidity, at shift excess and balances of points. assets basis the asset cash drop X mainly interest-earning a the asset led to level due of the decreased despite in in on to mix explained. the in interest-earning corporate side, context decline This BCP,

yield fell increased and by cost turn and drop asset XX on increase the side, funds loan increased pension which basis investment the equivalents portfolio On to duration the was basis, of deposits, In in its On the similar The this seen funds points. from the liability scenario, portfolio low-cost side, basis in that an on contracted, interest-earning year-over-year cash as extended. a assets analysis. in X following was are dynamics points. withdrawals fueled and quarterly

and on bond the favorable outpacing funds recent in the in by XX resulted On cost mix in basis [indiscernible] low-cost in issuances decline of banks interest-earning increase Against funding deposits fell this partly yield BCP. assets. backdrop, aforementioned the the an despite points, side, a increase the funding

please. slide, Next

quarter-over-quarter, turning via fell volume BCP at most well by Mibanco important Moving by of that and in portfolio NPL point, earlier. structural evolution particularly as the NPLs mentioned this SMEs the impacted both quality. the recent reached by the is on the individuals portfolio. the loan quarter, to a dynamics credit cycle, segment portfolios as Mibanco's note and to X.X% BCP It driven

NPL stand to successful at measures at basis the of points risk management cost points coverage this drop The In at stand X.X%. quarter-over-quarter, the quarter-over-quarter context, the and basis XX provisions to XX.X% coupled performance, ratio rose payment improvement XX.X%. to risk Mibanco, with debt both XXX in decreased while BCP

Next slide, please.

including business. income Moving Bolivia efficient core evolution on our income, and to transfer as its to most analyzing BCP To approach the of service foreign regulatory After impacted expenses. changes income income exclude funding cost analyze by of the decrease transaction. and credit Bolivia, Yape in and mainly through core cards, fee the an driven debit X.X% quarter-over-quarter, NII rose uptick via a cards in

stand disciplined terms NIM at at points NIM emphasize NIM year-over-year to increase increased risk-adjusted In in X.X%, expenses rose basis, X.XX% XX disruptive and by like funding at the both stand expenses driven basis X.XX%. level. that rising a the and XX strategy. management Analyzing at of card primarily an costs margins, of advantage interest of the rate XX the I fruits efficiency points to initiatives our while reflect would to points risk basis BCP accumulated on credit core of basis businesses strategic rose and operating

combined initiatives XX.X%. credit in in accounted [indiscernible] this of which were card Expenses year. the and of the XX% level at significant months first for expenses the X Tenpo, rose for Yape, The Culqi disruptive most expenditures

and XXXX. uptick stand months in to operating expenses, ratio to X at an drop accelerating the basis operating XX first points in of efficiency less XX.X% Finally, income

Next please. slide,

our quarter business. dividend Net It ratio for stood slightly that of by at Accordingly, is ROE extraordinary at year. was Mibanco yet driven XX XX.X% results our resilience of insurance the an to have to additional important testament These stands adapt and payout are a strong to share. an ability by results months this impacted and for declared universal our in to XX.X%. the circumstances. the not BCP PEN This XX.X%, payment and quarter, equity banking ROE was X first per deal. challenging dividend note

will updated our to now [indiscernible]. on And move I

Next slide, please.

stated, remains previously for our GDP growth expectation As X%. at

enjoy momentum, long-term remains activity although in for economic low. the wholesale growth, to loan financing appetite positive Regarding continues banking

These in average revise loan measured factors, total daily withdrawal, us been origination X%. Additionally, balances coupled in our to and of guidance has pension approach to for fund has to with growth impact our retail around cautious. led our banking segment the microfinance

situate which X% in upper expected NIM Our between to the X.X%. end of our guidance is and is range,

of the initiatives. risk the to our situate as levels our of cost We solid invest in achieved X% which between end in continue guidance, is expect We we upper and in X.X%. to turn efficiency disruptive

to controlling the ratio an are XX%. which the growth expenses our core with We year our close efficiency end near is expect in and and lower in XX% businesses of guidance, between

Given and the on strong other of income dynamics the insurance XXXX evolution XX%. guidance we [indiscernible] aforementioned reaffirm for ROE at based around our our results, and

With these comments, I would like to start the Q&A session.

[Operator with Instructions] comes Ernesto And America. question the first from Gabilondo Bank of

the for and to Congrats quality thanks the asset and will risk. opportunity be question first on of ask questions. results, My on cost

segment. We been into probably the time, exposure be much in at same strategy the have to get mentioned that position a But better year. the higher would next goal retail

see of how risk [indiscernible]? cost the So wondering you

Alejandro?

Yes, sure.

quarter. money mentioned, to system, continue of being the improvement trend we continue. gradient you pension come -- next but some the once And There and the goes of have we the moving the year following change As for trend our are We starts to think the might this lower. seen will is still, years an down. cost of the to perhaps risk out in continue expecting the expectation be

changing a we our we are in as mix Again, change in were you mix and -- know, in expecting portfolio.

risk back on individual cost the pre-pandemic, not expecting to to of but than a we based mix go are segment. more So

having we are what So lower our of are than year. expectations this for risk XXXX a cost

was follow-up to the at X.X%, mid- this, be XXXX this X% the this So guidance to the between cost will probably for year to a end of [indiscernible] between high maybe on XXXX, [indiscernible]? of low [indiscernible], end

given haven't We yet for next guidance year.

expecting We soon. I We'll we're more details year. the for lower that will coming beginning mentioned was year. next number of a give

mind have fact a like this we to we did expecting The of despite not any that are number the sense in provisions other thing is year. to -- that we're recovery returning keep lower a the

So the but side X% Nino. of going the this X.X%, to to upper returned year, provision the from we're we El be in

having -- provisions number any return necessarily a we Next specific of year, without expect provisions. kind lower

Perfect. my will Perfect. then be on And second subsidiaries. question

can ROE you cards level? with us point? do bank, and credit this developing of below [indiscernible] XX%. be where [indiscernible] to the on breakeven the subsidiaries closer the are getting what So we reaching ROEs you will which see new And do you with will share think that . Peru around one be on are considering And to Chile, [indiscernible] in the

last reaching what? the part, I get didn't that. I'm sorry,

breakeven -- point. breakeven The the

can [indiscernible] part. Okay. start with the ROE I

which hit really been go by mark, what any will the in subsidiary... we back know it So the Mibanco to basically, subsidiaries, Pacifico, most cycle. for is BCP performance towards coming at in number if that the are will closer are the years, a look with Credicorp the you them credit couple don't years. currently, XX% hopefully, But a get the expectations the XX% aim our of improving and it having of when number, close very to other good and more in trending business. capital above I has

Maybe finance. perspective, Yes. to say micro business is Maybe, I of Gianfranco. would underperforming the from complement, Ernesto, line is just overall Alejandro, this an

to Alejandro are in underperforming mentioned the terms as that a -- As obviously initial microfinance mentioned, targeted . Maybe sustainable that XX% one, year in ROE other my is better ROE. I Bolivia. we the we words, one a year much business. have is next relevant, to BCP of of but the to other for And it's expect have not

right franchise around country. it's the the can. We're As The be might what ROE XX%. I XX%, in there we say, wrong always doing

income the venture or sources a [indiscernible] Yape out we second in your obviously, have Obviously, J-curve. of I've And question, of is Yape beyond business, at breakeven. initial -- of have well, the part the of previous regarding mentioned large calls, most

regarding and track the And significant breakeven. original terms said least than income. of Having So to is to is we which in plan. reach better expect slightly one, that, business at actually expect we next to years on year X be right other the Tenpo large X Tenpo,

The comes with Renato from Maloney next question Autonomous Research.

how So helped cost system of quality mentioned has you've this excess and in funding. liquidity asset your the

in reconcile that with you're for short-lived upcoming to but then growth is how So perspective this you the year? to do wanted if going excess improvement, understand impact a asset quality or your of more also still liquidity this And I quarters? see next

-- the Sure. money of has specific already fund It deployed The shortly the to event. all event is pension clients. a has been

reason Some more cost of The could we've if they money of considerable, they the not so that effect it accounts, but -- been retained decrease actual still in seen is in it. direct this only effect want risk. of has use why

plans. as this this So expecting we're has before. is out Remember, it is what done that like from phase withdrawal pension will [indiscernible]

before. So dynamic we've this seen

same what's time, when country, which quarter growth in in in seeing going are for The formal and think [indiscernible] important. the very the on, we X% number last employment. we employment is last for also at increase we a was But actually the about are expecting

We have strong that now. of right very are payroll indicators payments leading

air continue improvement people risk But So was tight very of the cost should position. liquidity working the some what that to mentioning this this I of seeing has in we're to a decrease. it's at same an were is time that that given trend to that as in allow economy

next year. figures, And them to this X% grow X% to maybe expectation for complement, Alejandro, investment just central the bank year these and is private

I better leading mentioned, So micro a in next confidence -- performance some terms the lot of year both macro of growth, that provide a book us the as in mean. terms the be of -- and should loan indicators Alejandro that year of

Great. Okay.

higher risk? like of cost year, next growth, lower So

Yes.

Labarta Question Sachs. with comes Goldman from Tito

guidance, on above XQ. for year, the running maintained are very strong and you just at in that ROE around First you question a guidance this quarter the is XX%

to to maybe if we just should on XX%? you because to that So quarter? So XQ So running [indiscernible]? in do trend XQ? partly closer ROE does you're XX% lower clarify relatively upside XX% there's some normal to should down get Or think color to should seasonality -- that we expect a you just imply and weaker

way Sure. said. what quarter We the year. It last seasonality is same happened always the the year. of have in last you some exactly It

around XX% the we mark. So that like side will -- we that of more probably thinking there's are to kind going But we one, that expensive. of quarter should up end we're the to mean be have this a on upper going not annualize

question And That's my Okay. margin. then helpful. on your second

about the But to So and now the to rates, margin of cut in you're rates, How think in guess, get in the U.S.? U.S. impacted do does end you running rates by at lower the how again. both I lower that's guidance. particularly sensitivity the Peru high closer

this is mentioned have have, XX% a in impact on we points refined basis a bit a an year little duration year points shift of then I the of our XX in [indiscernible] portfolio, basis we've up for the effect the first will parallel Sure. it calculation in -- the longer because XXX quarter to of goes on period. and the around of full felt around coming margin that

and in growing NIM portfolio. the So that and that on sustain bit, coming have expect that strong a on to based keep pricing as to that rates do and bit for is little able continue if down and expect going doing we growing been have forward, local mix advantage side the also the a though anything, you've actually little we even a seen, don't we been to funding

So we'll at sensitivity funding, But coming and importantly, improve something and facing going be the for [indiscernible] and the risk the actually pricing same able perhaps to think it there to in adapted. bit we the we a is and months. that little our the are be of mix sustain time, is sure, NIM the more the with

from question with Batista next comes Thiago the UBS. And

the on of -- adults a active Peruvians. XX which is million Yape. Yape had reached monthly the I impressive active of about half number question users users, of probably

you first of kind for wrong. is, the have any further, number present the is or further even including second, if of question I'm expanding no? This to [indiscernible], a is see XX.X% of Peru? you my target high million users And [indiscernible] Or the with So Colombia Peru? 'XX, not that that expansion in level kind of XX.X of or expansion could in can Yape in only the Bolivia, bottleneck

Yes.

we answer only the figure Peru. Bolivia with I Let already first. The me all as are know, Even provided operating second in say. successfully, you we question Yape would for though is

had -- of limited X-stage Yape But At your where we're XXX,XXX point right, let month. [indiscernible], even Peruvians. still it relevant there's beginning there's some since a a at at was per And question, Regarding around time, Yaperos back. the in very strategy is the growing like XXX,XXX first the is more to strategy. me which though number step it go a a question number the actually you're of point -- --

to of largest Yaperos, one second, First the the number get usage. was which increase to is

As progress to first is generate already were the together Yaperos obviously income. -- stages are month. of are X today, using which Yape, average, And on we XXx the stage, a

is Yape. goes to launching the but of or keep And to in number of be new the usage, to terms features not within might in of we're terms growth J-curve users going of that there regarding level same original income how comment yes, going the my focusing we're is growing. in either now back So

question the And comes Brian with Flores . Citibank. next from

On very improved composition, see the cost. Slide funding #XX, a on we right,

the local days. now So of at deposits funding are XX%

improvements increase? your wanted And Just continue your strategy forward? that What should risk should driving this think certain What thoughts. is in we going to big these get also results? is cost of

more interact seeing And believe with working you're still possible there in that a all our as the and what approach And And is area. bank growth. to in is is the as mainly clients and that or is with invested and we've that some to channels leaving been increase the Sure. principality is has expectation due lot developing clients. explains seamlessly -- capabilities what the with the with we're we've our them growing made floating that potable. to us bringing keep their us. us that seeing more We client-centric our space that transactionality

the be on of we'll to continue able that some think to line. grow capture of we to that but -- -- that continue So floating

was? question second The

[indiscernible]? Continued improvement

Yes. Yes.

did a are situation mentioned hiring the and in bit the the better I better we by things in that a in much growth actively little situation both economy. earlier, and we trend by seeing economy, the As and also the

regardless pension event will last the that is funds decrease So with continue that of specific our in risk cost liquidity quarter. view of the happened to

comes from Next question Yuri Fernandes with JPMorgan.

I though the mentioned bank. ROE Digital you past sustainable you tracking would strong are above for like capital a are super to XX%, explore the Day, target a the it, and been bit has we of in little even

a a know, kind those just to and don't looking of be like, initiatives. are in better I -- you it better the many quality, seems of XXXX, So and beginning versus of

do continue sustainable Or checking, XX% you some no, just to ROE here? So your as target? see see could upside you

of regulation Basel potentially time, we Peru, to moving III Well, example, see have closer XX% There require capital. to for us the that are to will do at like, a number. the more in other forces sustainable continue

the at look numbers now, reasonable XX% the continue when return into the time, same So we good a we allows the at think that a as investors. to of to provide sustainable investing that future and ROE do is our us

mind That's just bear complement, the Day, points forward. haven't at up maybe Investor in we Yuri, stone. to basis mentioned XXX the of in set ROE to we -- investing a changed appetite what not going for

time, if We a that a disciplined success. very disciplined is very maintaining will our will we obviously the -- do investors. our for keep it's same believe investing our for very ROE And have we approach. interesting But XX% keep needed, at

XXXX, margins. like [indiscernible] should a see volume to actually don't a clear. quarter I you down? should Because just mentioned loan what loan be right, on here, So we got for was If wanted are right? resilient no, see though better a expect? [indiscernible]? growth even should No, understand already know we I coming have better economy, you just guidance when can But because I yet comment super little may, a we anything second but if And margins growth. better I for industry bit growth, one on shy the this If

factors. improvement to We it to about start allows the when loan of growth. also of for risk the cost Yes. in a on to reasons a couple us bit the be growth think do from the more or aggressive little loan side From in you expect Sure. about -- and being low a lending growth, because comes one side, think

side, wholesale of haven't On been the demand a making long-term more investments it's yet. in the as issue wholesale of that sense

and it's accelerating. On and much side, the [indiscernible] more on more retail our on necessarily cautious being side the been not

active expect there. economy the we situation more the As to be and our improves clients of improve,

investor next year. At -- the mentioned, I'm actually I positive time, early been same this sorry, at growing mentioned being investment, or these XXXX. highest for Gianfranco since around long the X-plus private confidence haven't percent XXXX, investor at

GDP more indications that start a there's seeing has because but from primary more economy broader been more reactivation we the So and growing in the sector.

a more sense. in we're broader Now it seeing

of growth us coming we going the growth to some we things those make and up. give year, next in the calculation. beginning expect year, that So pick but we guidance We'll do have have feel are to

question HSBC. the next And comes Gomez with from Carlos

and Two on start you local the on achieving you results be congratulating the to want you in succeeded intended I seem that to from Investor to by detachment do that. economy that specific and questions. [indiscernible] Day

driver to that going in strategic future? changed is you First decision made have that in a partner long the business the Or [indiscernible] main the is mean, understand the their having run, a consider have Has for this own [indiscernible] different to through would business. partner this I shareholder yourself? on [indiscernible]. going by What In a this you issues? [indiscernible] We transaction?

second a question, has that as affected there different monitor Had totally been leakage do competitor a more? [indiscernible] of big is And in that think know Peru. to in We you And way? data that any the on you you cybersecurity. have

this is Gianfranco. Carlos,

So insurance both business with the to our in as we've the business health that is today, providing years by run Bear ourselves. venture several joint mind that health and of before the decision business doing run the Banmedica. for from

the team run management operations. quite it current stay ourselves. -- So is to team, whole sorry, And we comfortable also the by running going to feel

Obviously, Cesar your joint second answer nothing another on future. plans of to But would that venture the future do with I no to to as operator. ask table another the is today, sense. the question. So in

Yes.

a reviewing event. our the we have have the been to for governance. we actually. relation that We It's sad have closely in very information that event And have to -- the event been monitoring country practices, I [indiscernible]

this kind And continue in our so to due improve government but far, that investment of have regard we to the trend the growing and doing, structure attacks been we events strive capabilities and this in globally. feel comfortable to we

been we So affected haven't [indiscernible]?

been not have affected. We

your To specific question.

the KM Oak Capital. question with And comes next from [indiscernible] White

beyond think Just trends the impact positive in asset improvement you [indiscernible]? before. wanted The do see of clients to any commented confirm pension I on quality, your you my fund understanding, in this

Yes, I in are the power in a improvement the of lot Yes. people hiring country. -- mentioned, we purchasing do. seeing of the in economy, We as we

in from So of Also, cost to in that are months all our side collection start pay the down. those measures we did to risk bring of dynamics a origination, of few lot starting a should ago monitoring.

So what's plans. happening pension basically, the of with expect trend we continue regardless to

a What decreased the the it has more fundamental an seeing situation might are change in we but that which quarter might is specific the improvement coming this in this a quarters, bit of in little at event. our happen speed of of clients regardless part

improved as a clients of cost a just haven't case of a of in Mibanco, most their has in very risk But comment, pension important the they plan, in And withdrawn way. Mibanco don't example, for and yes, the have anything.

things about also when trend thinking of cost types the are consider those the we we're So that of risk. in

to Probably in lines. same complement only Alejandra the

macro layers. but We been in one terms inflation that particularly in reduction the issue the a in the effects different also And inflation fundamental GDP, of segment, powerful consumer to is trying helped, has understand the force. positive has are

The our second on set of levers linked to management.

the is but and impacts. residuals a of had risk We X adjusted rescheduling. to this effect and And have capacity And is been going fundamental improve the of trend. terms appetite, collections reducing this in pension has our different the continue, funds

directly in we because reduce. positive clients the impacting very bit areas other the have the with the to also received used condition have been a the in has bank linked and volumes regarding clients One, reduced little in funds very has people or consumers where that has specifically banks event funds that

clients main to we rescheduling high to But propensity with pay, willingness have helped to we continue. that or and going identify trends are are fundamental parties third has us the them. to So actively even

answer. Really appreciate your

Just topic. a this pension fund follow-up on

impact in I long-term think withdrawals, X funds quarter are of when that interest or maybe fourth selling that meet to because early an the long-term of or commented X rounds believe happened, XXXX? to you you the assets Do the expect I yields affect down. it pandemic, during led pension to this I margins these your think now going

I down? the Long-term didn't question. -- coming what get

Long-term [indiscernible].

[indiscernible].

your [indiscernible] for loans. Long-term

Yes.

the that mean? plans coming pension Okay. Due are the to fact market, you of out

Yes, yes, yes.

player really that see they plans a to in active there. recomposing don't are while they continue and in we pension they Gianfranco Yes, their grow the big after No, continue such be this important are will earlier, reform market an impact mentioned portfolio, should but back market. Yes. less the come should to

So we are market. the not expecting in yield in any changes the fundamental dynamics

quick I have question. If last one just it. Got

strong has think I helping the now, appreciate really think Pacifico I performance. been strongly years ROEs for X, X

it business? expectations You'd like let's say, for cross-cycle target your XX% business. to be mention are the what the as your for, possible you on Would microfinance provide color for insurance to any

be just to outperforming. mentioned XX%. in specifically been it mentioned, you We we the before, expect Pacifico, So which as for has

that's ROE So the sustainable Pacifico. at

Got congratulations it. on results. And the

from Our Dubin Sergey next comes with HL. question

want sensitivity. to just regarding clarify NIM I

dollar for that mentioned soles, for XXX rates, that dollar soles versus basis XX -- the bps give NIM portfolio? separate parallel it's portfolio moves of you Can Is are your you talking please? both by points. you about sensitivity So and

talking the it sensitivity soles on the the bit of about am X, But That if to both is of kind portfolio. year, than first part you is the -- about right the XX X in of duration X, X because side now. in I side we I'm of the higher talking little calculation basis for have points can the is Sure. not a mean, dollar I on portfolio. each [indiscernible] think

on a bit So higher side. the dollar little it is

Okay.

by there XX you X XX meaning it's by do not Is cumulative if year correct? bps Okay. in and said points And basis by XX So points, year move X when that stay should year it's additional basis right? nothing, bps? XX Broadly? rates if year XXX basis by then a and NIM XX just X, X, contract your that you X, in year

XX first second points, basis right. come to to year. way XXX all contracts then That's going in the it's it year the if and Yes, on the down XX accumulative

Cumulative. Okay.

then And just final Okay. question.

Page where the Peru like come X, So Bank at slide just Central started looks earlier, It on obviously, have the U.S. show policy than rates rates. to the down looking you

this So coming chart down Peruvian to 'XX. rates end according start the in of

of last through. started they I U.S., in already then a had down just September, just you So think. coming year just rates or lower the quarter almost in And

what's you see portfolio, your repricing would in -- So rate of kind you specifically Peru the in of XXXX? of this how on see the how and -- of expectation much expect to would the much outlook

started in X% Sure. they like earlier, Central now. are -- they Bank [indiscernible], were moving as Yes, as you started of mentioned, they at the

government, to reduction we the are we've Having depend rate new is, is already is going which inflation or to in X.XX%. be the not said the rates. what's creates for a something So whether rate and -- around going of It's the that, -- to neutral little important bit going neutral central on an it to seen we mind. have terminal in rate Central whether the -- bank X% Fed, course, Bank or Peru for the in U.S., our that

assuming calculation you X%. you we the can I have last mind, do again, have as see of Peru of and is all year year, during for is an end we'll So course, And expect But don't was don't going in but they what's stance. Again, know not. generates going And see or That still our more that looking XXX U.S. that if with last XXXX. the them have points XX policies we to to with are inflation down we make expecting whether and happen basis on it our coming probably to that's by -- at NIM current anything. impact. to the

the to expected to this the years. reduction from a Central into we NIM despite and the are continue We coming expect this Bank, year higher be at

pricing, this less retail price. is that sensitive the We mix the change think to the plus in

So [indiscernible] that NIM those cost the despite fact we're to price against going keep work have allow us funds should of the to growing [indiscernible] the forces. to

Okay. a That's follow-up. very very clear. And then quick just

because this And transactionality. total. XX% improving So -- asked you you're said regarding of someone it's low-cost what before now deposits

have that in an of People if Do easy right, that in to basis the target went a more funding keep up from in went up kind in way term? have will to almost helps could transact, So just right? quite Do of money these low-cost XXX a points. the around move XXX, there. -- it's a people you a cost deposits bit, and basically, So mind -- side. get where year, as it to target? you continue by there's you medium

we're We have what on seeing. expectations

give that quarters. given it that we We growing haven't the We don't guidance, information. do see in coming

not Maybe that Yape like Sergey, just results terms prop provide very strategy. mobile our we of having for page, question. argue complement results to the banking, a years is we're quarter-by-quarter. that is so transactional the for the today your I that web segments, value been our long-term and it answer whole would we've in last different This will now manage features investments of doing and on. It's like

investing we will in thoroughly keep that, Having because very a sense said that that still high. is It's in target. not give there's difficult to So a the bear mind usage cash Peru very number. of in

see do we So a there. opportunity huge

question next comes the And with Soto from Santander. Andres

the dividend or which, BCP that? to you just transaction, capital When is the at you holding the represent the $XXX distribute events, [indiscernible] of equity of on your numbers, dividend My at regarding coming is have the level need deployment. extraordinary running XX% ratios core based X capital Banmedica before X. before would million. the I order and transaction, that you in XX%. Do those question numbers your would how out Banmedica the to the after subsidiary Is and look Tier about Mibanco is pay extraordinary for

$XXX We has just the transaction paid. when to approved both very million set not the here. in that the been specific Gianfranco [indiscernible], By Andres, authorities, Yes. Yes, be be soles. the should the have way, been transaction. paying [indiscernible]

and it's by paid, being not or direct of any to subsidiaries hasn't going operational be Credicorp subsidiary. the paid cash Credicorp, that . So

dividends the and of from was Mibanco. and at capital both though weren't dividend the on September, BCP special paid by even BCP Mibanco paid as Credicorp, Specifically

table obviously, negatively a equity those mentioned, by on X we by the figure today. dividend or So way, impacted keep everything invested will or by which, year-end And [indiscernible] in as we X minimum paid will have we year-end. a and that -- always lower, to our common is be else transaction, going the subsidiaries forward, as nothing

Understood.

what the will the based will from the cash and So payment position the be the year-end, Banmedico at by dividends be company that, including on the the -- of subsidiaries transaction, level? holding what

at position or Credicorp company at cash level level. The the

which is level, we [indiscernible], we we have Credicorp for [indiscernible] So $XXX which like around at transaction. million. is higher call retained a we now quiver million to the because what That's -- obviously $XXX what Banmedica buffer, normally

That's the the amount. on an we to Banmedico, special we an point. going an decided agreement we dividend, go to were that have probably, considered important to with When already if -- going fact pay to we're we

the So is for flow. that in already accounted

for Understood. your to you year guidance, be your appetite it X%, X.Xx GDP similar specific look, but loan I the Does Peru growth you to for segment? year. exactly at make guidance at provided for year, growth -- have next you multiplier understand loan This -- next the this to the X. for increased expect not are have And looking considering consumer given was year, any actually at growth also sense multiplier

before. put confidence is improving. growth have it next X year. Two don't Alejandro me the at loan this Let main been reasons expect Business [indiscernible] to grow way. We

matter next investments a private -- fact, As of year. should grow investment

the there So confidence are that brownfield because of here, started. on for we and on wholesale appetite but expect the and have specifically maybe business, projects the level growth already in some wholesale investment oversimplifying mining,

lever. X that's So

February, as be Obviously, much But we to more to in guidance, of I our Maybe provide give when And wouldn't, Mibanco the is and decreasing is be be of that, cost the that since I other to year, multiplier. the both say is is X.X. specific. wouldn't at mentioned said we increase. a going BCP that of all today, appetite lever you business, going risk it's next will multiplier going Having what the X. retail in Cesar risk

congratulations Understood. on the results.

Our from BTG. Alonso Aramburu with next question comes

Yes.

You the mentioned that on and the asset I cycle. at in a made. that quality questions that answered are you times But mentioned you report most the still also follow-up mean, growth in you turning point the few you already. origination strict a a you policy. loan of a have quick point just But the

we loan year, Mibanco, of wondering, just at specifically see relax you're the policies can couple the to the end growth? months whether some I'm before of So of next so in ready some those

Sure.

risk, relaxing seeing are seeing growth of we're improvement are we but As cost not the in the this necessarily measurements, in more we portfolio.

clients, the we've in So last of couple that to seen activity pick more we're and expecting months, up.

the relax more see of and So feel comfortable growth the portfolio. during yes, trends about months start will as we risk, coming the in we it should the cost but confirm we we more to

the It call further questions appears remarks. over time. to this no Officer, for at back Executive will Mr. are there Gianfranco turn Ferrari, closing I now Chief

all Thank your you for questions.

business into of built a a have result maintained into Now of resiliency wrapping translated up robust XXXX, today's call. we is performance In the Credicorp NIM. the risk-adjusted This first X a XX.X%. months the which direct of solid ROE

strengthened committed which organization. At for risk our micro origination. also of diversified ROE through while back Our seeing across the supporting even from from management on transactional seeing our the revenues, the medium reflects XX% activity with to cloud-lending We practices credit Mibanco, performance the to track macro and positive finance of we meet are entrepreneurs, remain our remain the target recovery, loan business. profitability on and benefits contribution improving noninterest prudent maintaining macro complex high together standards are levels cycles

in will large-scale by economy. our for the also well strategic Progress operations inflation, noninterest once commodity core and with level local long-term by resilient additional resilience revenue projects reduced streams This economic optimize investments. of of XXXX of of ROE. risk the NIM by dynamics diversified prices infrastructure outlook cost the will positive a the this be decreasing region. Against on for further will cycle and backdrop, positive, macro context, XX% also at low objectives, efficiency. the enhanced Looking a profitability enhancing our be the This overcome. remains support is and and These reaffirm during a supported we [indiscernible] remainder rate the period aligns environment provide favorable of year public target Peru's our supported

flow cash by become Our neutral XXXX. initiatives disruptive

track by in XX% leading to achieve financial Credicorp's transformation, digital Investments on inclusion. demonstrate our contribute Lastly, we through especially revenues are to having platforms XXXX. provisions disruptive ambitious goals of after Yape, commitment of like initiatives our innovation and

growth enhanced As to services the offerings customers Credicorp positioned we digital expand future, of from customer-centric further stakeholders the continue shaping to macro, to our these harnessing models new business is financial the decouple and continue alike. our for providing value while and well from

nice and a have call, all for in today's you Thank participating weekend.

concluded. you presentation. attending today's now has Thank Conference for

may You now disconnect.