Credicorp Ltd 6-K, filed May 9, 2022

Credicorp Ltd (BAP)

6-K 2022-05-09 For: 2022-05-05

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Added on April 07, 2026

About this 6-K

Credicorp Ltd filed this 6-K on May 9, 2022.

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	CREDICORP LTD. (Registrant)

	By:	/s/ Guillermo Morales
		Guillermo Morales
		Authorized Representative

	1Q22 Operating and Financial Highlights	03

	Senior Management Quotes	04

	First Quarter 2022 Earnings Conference Call	05

	Summary of Financial Performance and Outlook	06

	Financial Overview	10

	Credicorp’s Strategy Update	11

	Analysis of 1Q22 Consolidated Results

01	Loan Portfolio	14
02	Deposits	20
03	Interest Earning Assets and Funding	23
04	Net Interest Income	24
05	Provisions	27
06	Other Income	29
07	Insurance Technical Results	31
08	Operating Expenses	33
09	Operating Efficiency	35
10	Regulatory Capital	36
11	Economic Outlook	38
12	Appendix	43

Credicorp Ltd.	Quarter			% change
S/ 000	1Q21	4Q21	1Q22	QoQ	YoY
Net interest, similar income and expenses	2,123,383	2,477,847	2,534,090	2.3%	19.3%
Provision for credit losses on loan portfolio, net of recoveries	(557,647)	(126,782)	(257,590)	103.2%	-53.8%
Net interest, similar income and expenses, after provision for credit losses on loan portfolio	1,565,736	2,351,065	2,276,500	-3.2%	45.4%
Total other income	1,194,530	1,301,959	1,242,749	-4.5%	4.0%
Insurance underwriting result	(65,247)	127,657	141,546	10.9%	-316.9%
Total other expenses	(1,680,271)	(2,221,574)	(1,950,182)	-12.2%	16.1%
Profit (loss) before income tax	1,014,748	1,559,107	1,710,613	9.7%	68.6%
Income tax	(337,599)	(471,860)	(546,001)	15.7%	61.7%
Net profit (loss)	677,149	1,087,247	1,164,612	7.1%	72.0%
Non-controlling interest	16,351	26,631	27,786	4.3%	69.9%
Net profit (loss) attributable to Credicorp	660,798	1,060,616	1,136,826	7.2%	72.0%
Net profit (loss) / share (S/)	8.28	13.30	14.25	7.2%	72.0%
Loans	137,031,239	147,597,412	144,621,513	-2.0%	5.5%
Deposits and obligations	148,626,339	150,340,862	147,915,964	-1.6%	-0.5%
Net equity	24,529,958	26,496,767	26,872,626	1.4%	9.6%
Profitability
Net interest margin	3.73%	4.25%	4.44%	19 pbs	71 pbs
Risk-adjusted Net interest margin	2.75%	4.04%	3.99%	-5 pbs	124 pbs
Funding cost	1.43%	1.24%	1.33%	9 pbs	-10 pbs
ROAE	10.7%	16.4%	17.0%	60 pbs	630 pbs
ROAA	1.1%	1.7%	1.9%	20 pbs	80 pbs
Loan portfolio quality
Internal overdue ratio ⁽¹⁾	3.55%	3.76%	4.06%	30 pbs	51 pbs
Internal overdue ratio over 90 days	2.77%	2.85%	3.06%	21 pbs	29 pbs
NPL ratio ⁽²⁾	4.98%	4.98%	5.25%	27 pbs	27 pbs
Cost of risk ⁽³⁾	1.63%	0.34%	0.71%	37 pbs	-92 pbs
Coverage ratio of IOLs	200.2%	152.7%	140.7%	-1200 pbs	-5950 pbs
Coverage ratio of NPLs	142.9%	115.3%	108.9%	-640 pbs	-3400 pbs
Operating efficiency
Efficiency ratio ⁽⁴⁾	44.0%	49.5%	44.5%	-500 pbs	50 pbs
Operating expenses / Total average assets	2.83%	3.52%	3.23%	-29 pbs	40 pbs
Insurance ratios
Combined ratio of P&C ^{(5) (6)}	85.5%	86.5%	94.4%	790 pbs	890 pbs
Loss ratio ⁽⁶⁾	96.4%	71.3%	69.1%	-220 pbs	-2730 pbs
Capital adequacy - BCP Stand-alone ⁽⁷⁾
Global Capital ratio ⁽⁸⁾	16.46%	14.94%	15.79%	85 pbs	-67 pbs
Tier 1 ratio ⁽⁹⁾	10.59%	9.94%	10.74%	80 pbs	15 pbs
Common equity tier 1 ratio ^{(10) (12)}	11.01%	11.91%	11.63%	-28 pbs	62 pbs
Capital adequacy - Mibanco ⁽⁷⁾
Global Capital ratio ⁽⁸⁾	17.83%	16.40%	15.61%	-79 pbs	-222 pbs
Tier 1 ratio ⁽⁹⁾	14.48%	13.96%	13.24%	-72 pbs	-124 pbs
Common equity tier 1 ratio ^{(10) (12)}	14.73%	15.24%	15.21%	-3 pbs	48 pbs
Employees	36,233	36,358	36,199	-0.4%	-0.1%
Share Information
Issued Shares	94,382	94,382	94,382	0.0%	0.0%
Treasury Shares ⁽¹¹⁾	14,872	14,850	14,862	0.1%	-0.1%
Outstanding Shares	79,510	79,532	79,520	0.0%	0.0%

Transformation of traditional businesses ⁽¹⁾	Subsidiary	1Q19	1Q21	1Q22
Day-to-day
Digital Clients ⁽²⁾	BCP	32%	56%	57%
Digital Monetary Transactions ⁽³⁾	BCP	22%	46%	53%
Transactional Cost per Unit (S/)	BCP	0.40	0.21	0.15
Disbursements through Leads ⁽⁴⁾	Mibanco	N.A.	61.5%	76.9%
Disbursements through Alternative Channels ⁽⁵⁾	Mibanco	15.1%	21.0%	45.5%
Cashless
Cashless Transactions ⁽⁶⁾	BCP	18%	36%	39%
Mobile Banking Rating	BCP	3.2	3.1	3.9
Digital Acquisition
Digital Sales ⁽⁷⁾	BCP	9%	36%	34%

Disruptive Initiatives: Yape ⁽¹⁾	1Q19	1Q21	1Q22
Cashless
Users (thousands)	726	5,933	9,133
% of BCP Client Users ⁽²⁾	100%	64%	52%
% of Yapecard Users ⁽³⁾	N.A.	30%	42%
Active Users (millions) ⁽⁴⁾	0.3	2.8	5.1
% Active Monthly Users ⁽⁵⁾	35%	47%	56%
No. of Monthly Transactins (thousand)	896	22,574	69,238
Monthly Transaction Amount (million, S/)	42	1,625	4,075
Monthly Transactions per Active User ⁽⁶⁾	1	8	13

The Sustainability Strategy is articulated through three pillars:

Create a more sustainable and inclusive economy	Improve the financial health of citizens	Empower our people to thrive


	In the YoY analysis, which eliminates seasonal effects, Structural Loans rose 12.4% (+12.3% excluding the exchange rate effect); this increase was primarily attributable to BCP Stand-alone and Mibanco and driven by reactivation as well as a low base effect in 1Q21 in a context of short-term amortization in Wholesale Banking in particular. The NPL ratio improved 94bps YoY, which reflected an uptick in clients’ payment behavior and a decrease in risk levels, particularly in Mibanco and Retail Banking.

Structural Loans ⁽²⁾ (S/ millions)	As of			Volume change		% change		% Part. in total structural loans
	As of			Volume change		% change		% Part. in total structural loans
	Mar 21	Dec 21	Mar 22	QoQ	YoY	QoQ	YoY	Mar 21	Dec 21	Mar 22
BCP Stand-alone	90,278	101,729	102,936	1,207	12,658	1.2%	14.0%	80.4%	81.2%	81.6%
Wholesale Banking ⁽²⁾	43,477	52,289	52,039	-251	8,562	-0.5%	19.7%	38.7%	41.7%	41.3%
Corporate	26,579	31,426	31,234	-191	4,655	-0.6%	17.5%	23.7%	25.1%	24.8%
Middle - Market	16,898	20,864	20,805	-59	3,907	-0.3%	23.1%	15.1%	16.6%	16.5%
Retail Banking ⁽²⁾	46,801	49,439	50,897	1,458	4,096	2.9%	8.8%	41.7%	39.4%	40.4%
SME - Business	4,287	5,302	4,858	-444	571	-8.4%	13.3%	3.8%	4.2%	3.9%
SME - Pyme	10,760	11,597	12,210	613	1,450	5.3%	13.5%	9.6%	9.3%	9.7%
Mortgage	17,720	18,432	18,833	401	1,112	2.2%	6.3%	15.8%	14.7%	14.9%
Consumer	9,958	10,296	10,974	678	1,015	6.6%	10.2%	8.9%	8.2%	8.7%
Credit Card	4,075	3,813	4,022	209	-53	5.5%	-1.3%	3.6%	3.0%	3.2%
Mibanco	10,102	10,990	11,375	386	1,274	3.5%	12.6%	9.0%	8.8%	9.0%
Mibanco Colombia	909	1,064	1,077	14	169	1.3%	18.6%	0.8%	0.8%	0.9%
Bolivia	8,420	9,230	8,602	-628	183	-6.8%	2.2%	7.5%	7.4%	6.8%
ASB	2,520	2,311	2,103	-208	-417	-9.0%	-16.5%	2.2%	1.8%	1.7%
BAP's total loans	112,227	125,323	126,094	770	13,867	0.6%	12.4%	100.0%	100.0%	100.0%

For consolidation purposes, Loans generated in Foreign Currency (FC) are converted to Local Currency (LC).
(1) Includes Work out unit, and other banking. For Quarter-end Balances figures, please refer to “12. Annexes – 12.11 Loan Portfolio Quality”. (2) Structural Portfolio excludes the Loans offered through Reactiva Peru and FAE-Mype Government Programs (GP).
(3) Portfolio Management Figures. Non-audited figures.

Total Loans (S/ millions)	As of			Volume change		% change		% Part. in total loans
	As of			Volume change		% change		% Part. in total loans
	Mar 21	Dec 21	Mar 22	QoQ	YoY	QoQ	YoY	Mar 21	Dec 21	Mar 22
BCP Stand-alone	111,928	119,100	118,248	-852	6,320	-0.7%	5.6%	81.9%	82.1%	82.3%
Wholesale Banking ⁽²⁾	49,819	56,359	55,580	-779	5,762	-1.4%	11.6%	36.4%	38.9%	38.7%
Corporate	27,229	31,851	31,625	-226	4,396	-0.7%	16.1%	19.9%	22.0%	22.0%
Middle - Market	22,590	24,508	23,955	-553	1,366	-2.3%	6.0%	16.5%	16.9%	16.7%
Retail Banking ⁽²⁾	62,109	62,741	62,668	-74	559	-0.1%	0.9%	45.4%	43.3%	43.6%
SME - Business	10,793	10,484	9,435	-1,049	-1,358	-10.0%	-12.6%	7.9%	7.2%	6.6%
SME - Pyme	19,562	19,717	19,404	-312	-158	-1.6%	-0.8%	14.3%	13.6%	13.5%
Mortgage	17,720	18,432	18,833	401	1,112	2.2%	6.3%	13.0%	12.7%	13.1%
Consumer	9,958	10,296	10,974	678	1,015	6.6%	10.2%	7.3%	7.1%	7.6%
Credit Card	4,075	3,813	4,022	209	-53	5.5%	-1.3%	3.0%	2.6%	2.8%
Mibanco	12,923	13,352	13,582	230	659	1.7%	5.1%	9.5%	9.2%	9.5%
Mibanco Colombia	909	1,064	1,077	14	169	1.3%	18.6%	0.7%	0.7%	0.8%
Bolivia	8,420	9,230	8,602	-628	183	-6.8%	2.2%	6.2%	6.4%	6.0%
ASB	2,520	2,311	2,103	-208	-417	-9.0%	-16.5%	1.8%	1.6%	1.5%
BAP's total loans	136,699	145,057	143,613	-1,445	6,914	-1.0%	5.1%	100.0%	100.0%	100.0%

Total Loans (S/ millions)	Local Currency (LC)						% change		% change Structural		Foreign Currency (FC)			% change		% part. by currency
	Total			Structural			% change		% change Structural		Total			% change		Mar 22
	Mar 21	Dec 21	Mar 22	Mar 21	Dec 21	Mar 22	QoQ	YoY	QoQ	YoY	Mar 21	Dec 21	Mar 22	QoQ	YoY	LC	FC
BCP Stand-alone	80,117	84,592	85,292	58,466	67,221	69,980	0.8%	6.5%	4.1%	19.7%	8,642	8,600	8,751	1.7%	1.3%	72.1%	27.9%
Wholesale Banking	24,935	28,967	29,181	18,593	24,898	25,640	0.7%	17.0%	3.0%	37.9%	6,761	6,827	7,009	2.7%	3.7%	52.5%	47.5%
Corporate	11,538	15,077	15,548	10,887	14,652	15,157	3.1%	34.8%	3.4%	39.2%	4,264	4,181	4,268	2.1%	0.1%	49.2%	50.8%
Middle-Market	13,398	13,890	13,633	7,706	10,246	10,482	-1.9%	1.8%	2.3%	36.0%	2,497	2,646	2,741	3.6%	9.8%	56.9%	43.1%
Retail Banking	55,181	55,625	56,111	39,873	42,323	44,340	0.9%	1.7%	4.8%	11.2%	1,882	1,774	1,741	-1.8%	-7.5%	89.5%	10.5%
SME - Business	8,320	7,780	7,016	1,814	2,597	2,440	-9.8%	-15.7%	-6.1%	34.5%	672	674	642	-4.7%	-4.4%	74.4%	25.6%
SME - Pyme	19,352	19,517	19,238	10,550	11,398	12,044	-1.4%	-0.6%	5.7%	14.2%	57	50	44	-11.0%	-22.6%	99.1%	0.9%
Mortgage	15,572	16,391	16,922	15,572	16,391	16,922	3.2%	8.7%	3.2%	8.7%	584	509	507	-0.2%	-13.1%	89.9%	10.1%
Consumer	8,436	8,898	9,615	8,436	8,898	9,615	8.1%	14.0%	8.1%	14.0%	414	348	361	3.6%	-12.7%	87.6%	12.4%
Credit Card	3,502	3,039	3,320	3,502	3,039	3,320	9.3%	-5.2%	9.3%	-5.2%	156	193	187	-3.3%	19.8%	82.5%	17.5%
Mibanco	12,441	12,880	13,109	9,619	10,518	10,902	1.8%	5.4%	3.7%	13.3%	131	118	126	6.9%	-4.1%	96.5%	3.5%
Mibanco Colombia	-		-	-	-	-	-	-	-	-	247	265	286	8.0%	16.0%	-	100.0%
Bolivia	-	-	-	-	-	-	-	-	-	-	2,287	2,300	2,284	-0.7%	-0.1%	-	100.0%
ASB	-	-	-	-	-	-	-	-	-	-	685	576	558	-3.1%	-18.5%	-	100.0%
Total loans	92,558	97,472	98,401	68,086	77,738	80,882	1.0%	6.3%	4.0%	18.8%	11,992	11,859	12,005	1.2%	0.1%	68.5%	31.5%

Structural Portfolio quality and Delinquency ratios ⁽¹⁾	As of			% change
S/000	As of			% change
	Mar 21	Dec 21	Mar 22	QoQ	YoY
Structural loans (Quarter-end balance)	112,782,997	128,956,585	128,251,606	-0.5%	13.7%
Structural Allowance for loan losses	9,592,786	8,280,467	8,061,670	-2.6%	-16.0%
Structural Write-offs	767,136	683,181	378,093	-44.7%	-50.7%
Structural IOLs	4,868,483	4,475,373	4,841,329	8.2%	-0.6%
Structural Refinanced loans	1,951,855	1,799,541	1,714,074	-4.7%	-12.2%
Structural NPLs	6,820,338	6,274,914	6,555,403	4.5%	-3.9%
Structural IOL ratio	4.32%	3.47%	3.77%	30 pbs	-55 pbs
Structural NPL ratio	6.05%	4.87%	5.11%	24 pbs	-94 pbs
Structural Allowance for loan losses over Structural loans	8.5%	6.4%	6.3%	-13 pbs	-222 pbs
Structural Coverage ratio of NPLs	140.6%	132.0%	123.0%	-898 pbs	-1767 pbs

Portfolio quality and Delinquency ratios	As of			% change
S/000	As of			% change
	Mar 21	Dec 21	Mar 22	QoQ	YoY
Total loans (Quarter-end balance)	137,031,239	147,597,412	144,621,513	-2.0%	5.5%
Allowance for loan losses	9,744,298	8,477,308	8,262,383	-2.5%	-15.2%
Write-offs	767,136	683,181	378,093	-44.7%	-50.7%
Internal overdue loans (IOLs) ⁽¹⁾⁽²⁾	4,868,483	5,551,258	5,872,999	5.8%	20.6%
Internal overdue loans over 90-days ⁽¹⁾	3,789,286	4,203,671	4,424,384	5.3%	16.8%
Refinanced loans ⁽²⁾	1,951,855	1,799,541	1,714,074	-4.7%	-12.2%
Non-performing loans (NPLs) ⁽³⁾	6,820,338	7,350,799	7,587,073	3.2%	11.2%
IOL ratio	3.55%	3.76%	4.06%	30 pbs	51 pbs
IOL over 90-days ratio	2.77%	2.85%	3.06%	21 pbs	29 pbs
NPL ratio	4.98%	4.98%	5.25%	27 pbs	27 pbs
Allowance for loan losses over Total loans	7.1%	5.7%	5.7%	-3 pbs	-140 pbs
Coverage ratio of IOLs	200.2%	152.7%	140.7%	-1203 pbs	-5947 pbs
Coverage ratio of IOL 90-days	257.2%	201.7%	186.7%	-1491 pbs	-7040 pbs
Coverage ratio of NPLs	142.9%	115.3%	108.9%	-642 pbs	-3397 pbs


	In a context marked by rate hikes, in 1Q22 76.7% of deposits were low-cost. In the YoY analysis, low-cost Deposits increased 4.8% (excluding the exchange rate effect). This was attributable to an increase in demand and savings deposits in FC, which was partially offset by a drop in demand deposits in LC following amortizations of Reactiva loans. The balances of Severance Indemnity (CTS) deposits fell by nearly half (-49.5% YoY excluding exchange rate effect), in line with government relief measures that temporarily released funds to bolster liquidity. The market share (MS) of Total Deposits at BCP Stand-alone and Mibanco as of February 2022 in the financial system grew 40 and 10bps respectively with regards to March 2021’s figure.


	At the end of 1Q22, IEAs dropped 2.7% YoY due to a decrease in liquidity system-wide after clients amortized GP loans; this triggered a reduction in available funds in particular. It is important to note that structural loans grew 13.7%, driven by an uptick in economic activity as the pandemic waned and contention measures were lifted. Funding decrease 4.1% YoY, which was attributable to repayments of GP loans funding and the consequent drop in liquidity. Notwithstanding, it is important to note that low-cost deposits in the Individuals segment registered growth.

Interest Earning Assets	As of			% change
S/000	As of			% change
	Mar 21	Dec 21	Mar 22	QoQ	YoY
Cash and due from banks	31,831,948	32,392,465	29,560,067	-8.7%	-7.1%
Interbank funds	63,301	2,943	3,445	17.1%	-94.6%
Total investments	59,412,732	48,952,499	48,145,429	-1.6%	-19.0%
Cash collateral, reverse repurchase agreements and securities borrowing	1,769,690	1,766,948	1,516,855	-14.2%	-14.3%
Financial assets designated at fair value through profit or loss	888,420	974,664	856,337	-12.1%	-3.6%
Total loans	137,031,239	147,597,412	144,621,513	-2.0%	5.5%
Total interest earning assets	230,997,330	231,686,931	224,703,646	-3.0%	-2.7%

Funding	As of			% change
S/000	As of			% change
	Mar 21	Dec 21	Mar 22	QoQ	YoY
Deposits and obligations	148,626,339	150,340,862	147,915,964	-1.6%	-0.5%
Due to banks and correspondents	5,305,933	7,212,946	6,362,990	-11.8%	19.9%
BCRP instruments	24,303,193	19,692,474	17,532,350	-11.0%	-27.9%
Repurchase agreements	1,159,587	1,296,277	1,218,028	-6.0%	5.0%
Bonds and notes issued	17,863,198	17,078,829	16,044,671	-6.1%	-10.2%
Total funding	197,258,250	195,621,388	189,074,003	-3.3%	-4.1%


	In 1Q22, Net Interest Income continued to recover. Growth was attributable to higher interest rates, which impacted liquid assets in particular. This was accompanied by an increase in the volume of structural loans, our most profitable asset; the pace of growth of these loans has accelerated over the last 3 months. Additionally, given that 60% of the funding base is comprised of low-cost deposits, financial expenses remained under control in an environment marked by rising interest rates. In this context, in 1Q22, the Net Interest Margin registered an uptick in recovery and stood at 4.44% (vs. 4.25% last quarter) while the structural Net Interest Margin stood at 4.72% (vs. 4.54% last quarter).

Net Interest Income / Margin	Quarter			% change
S/ 000	1Q21	4Q21	1Q22	QoQ	YoY
Interest Income	2,816,073	3,091,754	3,172,346	2.6%	12.7%
Interest Expense	692,690	613,907	638,256	4.0%	-7.9%
Net Interest Income	2,123,383	2,477,847	2,534,090	2.3%	19.3%

Balances
Average Interest Earning Assets (IEA)	227,812,456	233,016,342	228,195,289	-2.1%	0.2%
Average Funding	194,364,649	197,645,369	192,347,695	-2.7%	-1.0%

Yields
Yield on IEAs	4.94%	5.31%	5.56%	25pbs	62pbs
Cost of Funds	1.43%	1.24%	1.33%	9pbs	-10pbs
Net Interest Margin (MNI)	3.73%	4.25%	4.44%	19pbs	71pbs
Risk-Adjusted Net Interest Margin	2.75%	4.04%	3.99%	-5pbs	124pbs
Peru's Reference Rate	0.25%	2.50%	4.00%	150pbs	375pbs
FED funds rate	0.25%	0.25%	0.50%	25pbs	25pbs

Interest Income / IEA	1Q21			4Q21			1Q22
S/ millions	Average			Average			Average
	Balance	Income	Yields	Balance	Income	Yields	Balance	Income	Yields
Cash and equivalents	30,236	8	0.1%	34,271	23	0.3%	30,979	35	0.5%
Other IEA	2,938	9	1.3%	3,139	12	1.5%	2,557	19	2.9%
Investments	57,293	366	2.6%	48,531	402	3.3%	48,549	433	3.6%
Loans	137,346	2,433	7.09%	147,074	2,654	7.22%	146,109	2,686	7.4%
Structural	112,900	2,347	8.3%	127,228	2,582	8.1%	128,590	2,619	8.1%
Government Programs	24,445	86	1.4%	19,846	72	1.5%	17,520	67	1.5%
Total IEA	227,812	2,816	4.9%	233,016	3,092	5.3%	228,195	3,172	5.6%
IEA (LC)	61.3%	76.1%	6.1%	56.2%	76.5%	7.2%	57.8%	78.8%	7.6%
IEA (FC)	38.7%	23.9%	3.1%	43.8%	23.5%	2.8%	42.2%	21.2%	2.8%

Interest Expense / Funding	1Q21			4Q21			1Q22
S/ millions	Average			Average			Average
	Balance	Expense	Yields	Balance	Expense	Yields	Balance	Expense	Yields
Deposits	145,496	223	0.6%	151,445	223	0.6%	149,128	259	0.7%
BCRP + Due to Banks	30,661	112	1.5%	27,559	112	1.6%	25,400	116	1.8%
Bonds and Notes	17,091	267	6.2%	17,328	176	4.1%	16,562	165	4.0%
Others	1,116	91	32.6%	1,314	104	31.5%	1,257	98	31.1%
Total Funding	194,365	693	1.4%	197,645	614	1.2%	192,348	638	1.3%
Funding (LC)	56.4%	42.8%	1.1%	51.5%	49.6%	1.2%	51.4%	53.6%	1.4%
Funding (FC)	43.6%	57.2%	1.9%	48.5%	50.4%	1.3%	48.6%	46.4%	1.3%

NIM	227,812	2,123	3.7%	233,016	2,478	4.3%	228,195	2,534	4.4%
NIM (LC)	61.3%	86.9%	5.3%	56.2%	83.2%	6.3%	57.8%	85.1%	6.5%
NIM (FC)	38.7%	13.1%	1.3%	43.8%	16.8%	1.6%	42.2%	14.9%	1.6%


	Although Provisions remain below pre-pandemic levels, they rose 250.2% QoQ given that Provisions hit a record low in 4Q21, where the base effect was driven primarily by the evolution of SME-Pyme and Mibanco. YoY, Provisions fell 53.2%, which was mainly attributable to an improvement in payment behavior among Retail Banking clients at BCP Stand-alone, which reflected the fact that economic growth outpaced expectations. The Structural Cost of Risk (CoR) stood at 0.79% in 1Q22 compared to 0.22% in 4Q21, which reflected an increase in Provisions and a drop in Loans. YoY, an improvement in client risk profiles was complemented by an uptick in Loans, which led the CoR to reduce 113bps.

Structural Loan Portfolio Provisions	Quarter			% change
S/ 000	1Q21	4Q21	1Q22	QoQ	YoY
Gross provision for credit losses on loan portfolio	(607,001)	(175,482)	(346,809)	97.6%	-42.9%
Recoveries of written-off loans	65,335	103,022	93,091	-9.6%	42.5%
Provision for credit losses on loan portfolio, net of recoveries	(541,666)	(72,460)	(253,718)	250.2%	-53.2%
Structural Cost of risk ⁽¹⁾	1.92%	0.22%	0.79%	57 bps	-113 bps

Loan Portfolio Provisions	Quarter			% change
S/ 000	1Q21	4Q21	1Q22	QoQ	YoY
Gross provision for credit losses on loan portfolio	(622,982)	(229,804)	(350,681)	52.6%	-43.7%
Recoveries of written-off loans	65,335	103,022	93,091	-9.6%	42.5%
Provision for credit losses on loan portfolio, net of recoveries	(557,647)	(126,782)	(257,590)	103.2%	-53.8%
Cost of risk ⁽¹⁾	1.63%	0.34%	0.71%	37 bps	-92 bps


	Other core income rose 14% YoY due to an increase in foreign exchange transactions and growth in fee income, which was in line with an uptick in transactions. Other non-core income fell QoQ ad YoY, which reflected a Net loss on sales of securities at Pacifico due to impairment in the company’s investment portfolio and a Loss on investments in fixed-income mutual funds.

Core Other Income	Quarter			% change
(S/ 000)	1Q21	4Q21	1Q22	QoQ	YoY
Fee income	830,771	924,161	891,031	-3.6%	7.3%
Net gain on foreign exchange transactions	179,889	269,354	262,196	-2.7%	45.8%
Total other income Core	1,010,660	1,193,515	1,153,227	-3.4%	14.1%

Non-core Other income	Quarter			% change
(S/ 000)	1Q21	4Q21	1Q22	QoQ	YoY
Net gain on securities	16,287	2,550	(56,866)	-2330.0%	-449.1%
Net gain from associates ⁽¹⁾	29,405	13,224	24,014	81.6%	-18.3%
Net gain on derivatives held for trading	69,723	27,049	(138)	-100.5%	-100.2%
Net gain from exchange differences	(5,536)	(8,923)	(25,390)	n.a.	n.a.
Other non-financial income	73,991	74,544	147,902	98.4%	99.9%
Total other income Non-Core	183,870	108,444	89,522	-17.4%	-51.3%


	The insurance underwriting result continues to recover, driven by normalization in claims in the Life business. Net earned premiums rose YoY in both the Life and P&C businesses, driven by Group Life and Medical Assistance products respectively.

Insurance underwriting result⁽¹⁾		Quarter			% change
S/ 000		1Q21	4Q21	1Q22	QoQ	YoY
Total	Net earned premiums	643,928	712,087	690,536	-3.0%	7.2%
	Net claims	(623,353)	(509,279)	(478,506)	-6.0%	-23.2%
	Acquisition cost	(85,822)	(75,152)	(70,484)	-6.2%	-17.9%
	Total insurance underwriting result	(65,247)	127,657	141,546	10.9%	n.a.
	Loss Ratio	96.8%	71.5%	69.3%	-220 pbs	-2750 pbs
Life	Net earned premiums	343,158	375,454	365,492	-2.7%	6.5%
	Net claims	(501,713)	(350,672)	(315,718)	-10.0%	-37.1%
	Loss Ratio	146.2%	93.4%	86.4%	-700 pbs	-5980 pbs
P&C	Net earned premiums	284,423	318,949	308,891	-3.2%	8.6%
	Net claims	(114,132)	(149,749)	(156,851)	4.7%	37.4%
	Loss Ratio	40.1%	47.0%	50.8%	380 pbs	1070 pbs


	Operating Expenses increased YoY due to higher transactional cost; an uptick in expenses for the digital strategy; and a,n increase in variable compensation, which reflects growth in earnings this quarter. QoQ expenses reduction reflects the impact of seasonality in the fourth quarter.

Administrative general, and tax expenses	Quarter			% change
S/000	1Q21	4Q21	1Q22	QoQ	YoY
IT expenses and IT third-party services	137,033	234,556	200,757	-14.4%	46.5%
Advertising and customer loyalty programs	72,326	76,266	110,497	44.9%	52.8%
Audit Services, Consulting and professional fees	68,808	185,896	74,063	-60.2%	7.6%
Taxes and contributions	41,725	62,644	52,518	-16.2%	25.9%
Infrastructure maintenance and repair	27,443	97,026	29,939	-69.1%	9.1%
Transport and communications	40,382	66,026	40,164	-39.2%	-0.5%
Agents' Fees	25,036	27,960	27,018	-3.4%	7.9%
Leases of low value and short-term	20,902	15,530	20,931	34.8%	0.1%
Miscellaneous supplies	14,819	15,035	19,077	26.9%	28.7%
Security and protection	17,630	16,381	16,726	2.1%	-5.1%
Electricity and water	15,959	14,384	15,476	7.6%	-3.0%
Subscriptions and quotes	13,183	14,717	13,437	-8.7%	1.9%
Insurances	10,691	13,957	10,677	-23.5%	-0.1%
Electronic processing	8,274	7,574	8,916	17.7%	7.8%
Cleaning	9,968	4,987	7,693	54.3%	-22.8%
Services by third-party	5,282	43,598	4,506	-89.7%	-14.7%
Others ⁽¹⁾	51,381	2,753	73,144	2556.9%	42.4%
Total administrative and general expenses	580,842	899,290	725,539	-19.3%	24.9%

Physical Channels	As of			change (units)
	Mar 21	Dec 21	Mar 22	QoQ	YoY
Branches	760	716	706	- 10	- 54
ATMs	3,156	3,233	3,319	86	163
Agentes	7,170	8,364	8,148	- 216	978
Total	11,086	12,313	12,173	- 140	1,087


	The efficiency ratio deteriorated 50bps YoY due to higher transactional cost and growth in expenses related to digital transformation. If we exclude expenses related to disruptive initiatives (Yape + Krealo), the efficiency ratio stands at 42.5%, or 200bps lower than reported. If we exclude these expenses in the calculation for 1Q21 and 1Q22, the efficiency improves 50bps YoY.

	BCP Individual	BCP Bolivia	Mibanco Peru	Mibanco Colombia	Pacífico	Prima AFP	Credicorp
	BCP Individual	BCP Bolivia	Mibanco Peru	Mibanco Colombia	Pacífico	Prima AFP	Credicorp
4Q20	40.2%	59.7%	62.0%	78.3%	37.4%	46.5%	44.0%
3Q21	47.4%	70.0%	55.6%	67.4%	35.2%	61.2%	49.5%
4Q21	40.6%	59.9%	53.0%	79.2%	36.1%	54.5%	44.5%
% change QoQ	-680 pbs	-1010 pbs	-260 pbs	1180 pbs	90 pbs	-670 pbs	-500 pbs
% change YoY	40 pbs	20 pbs	-900 pbs	90 pbs	-130 pbs	800 pbs	50 pbs