4Q13 Fixed Income Presentation March 2014 PERUS ECONOMY AND BANKING - PowerPoint PPT Presentation

4Q13 Fixed Income Presentation March 2014

PERU’S ECONOMY AND BANKING SYSTEM 2

Highlights Low Country Risk Perception Strong Economic Metrics Exchange Rates EMBI (LTM Average) 1.35 1.30 1.25 382 1.20 1.15 1.10 1.05 BBB+ BBB 1.00 BBB BBB+ AA- 0.95 211 189 0.90 159 159 0.85 154 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 EMBI Spread (pbs) Chile Peru Mexico Brazil Colombia Latam 280 Source: BCRP, S&P. 240 200 Improved Credit Ratings 160 120 FC-LT Rating Outlook Date 80 Moody's Baa2 Positive Aug 16 th , 2012 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 S&P BBB+ Stable Aug 19 th , 2013 Fitch BBB+ Stable Oct 23 th , 2013 Annual Inflation (%)  Moody’s changed its outlook on Peru to positive on August 16 th , 2012.  On August 19 th , 2013 S&P upgraded Peru’s foreign currency 6.65 4.74 long-term credit rating to BBB+ and changed its outlook to 3.93 3.73 3.48 2.65 2.86 2.48 2.08 1.52 1.49 0.25 stable. 1.14 (0.13)  Fitch upgraded Peru’s foreign currency long -term rating to BBB+ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 on October 23 th , 2013. Source: BCRP, SBS, Bloomberg. 3

Economic and Social Indicators GDP Growth Controlled Fiscal Balance 3-Year Average Real GDP Growth (%) 3-Year Average Fiscal Balance/GDP (%) 7.3 5.9 5.7 5.4 4.8 4.6 1.2 4.4 4.3 0.6 4.1 4.1 4.0 3.7 0.2 0.2 3.0 2.8 2.2 (0.2) (0.7) (1.1) (1.8) (2.2) (2.5) (2.5) (2.6) (3.0) (3.2) (3.5) Peru Chile Mexico Colombia Brazil Peru Chile Mexico Colombia Brazil '10-'12 '13-'15E '16-'18E '10-'12 '13-'15E '16-'18E Decreasing Indebtedness Improving Poverty Indicators 3-Year Average Public Debt/GDP (%) Poverty as a % of Total Population 54.8 41 51.2 36 36 38 35 35 33 32 31 21 34.1 19 16 14 25.8 12 11 21.4 15.1 Peru Chile Mexico Colombia Brazil Peru (2001) Peru (2012) Chile Mexico Colombia Brazil '10-'12 '13-'15E '16-'18E Source: Focus Economics as of February 28, 2014 and INEI as of December 31, 2012. 4

Peruvian Financial System I Net Loans & Deposits (USD Bn) Local Currency Net Loans & Deposits (S/. Bn) 131.4 45.7% 44.4% 117.1 43.2% 115.1 40.5% 40.0% 35.7% 95.9 92.4 78.4 41.7% 41.0% 86.9 71.4 80.3 69.3 63.8 60.3 66.8 53.1 53.6 43.7 2010 2011 2012 2013 2010 2011 2012 2013 Net Loans Deposits Net Loans Local Currency Deposits Local Currency Net Dollarization Deposits Dollarization Foreign Currency Net Loans & Deposits (USD Bn) Net Income (USD Bn) 2.3 31.3 2.2 28.1 2.0 27.6 25.5 24.7 23.8 22.2 1.6 20.0 2010 2011 2012 2013 2010 2011 2012 2013 Net Loans Foreign Currency Deposits Foreign Currency Source: SBS as of December 31, 2013. 5

Peruvian Financial System II Past due loans/Total loans & Coverage Ratio Profitability 225% 219% 250% 204% 177% 200% 144% 137% 137% 128% 150% 100% 24.6% 25.2% 50% 21.8% 1.0% 19.7% 1.1% 0% 1.2% 1.1% -50% -100% 2.6% 2.2% 1.9% 1.9% 2.0% 2.3% 2.0% 2.0% -150% -200% 2010 2011 2012 2013 2010 2011 2012 2013 Refinanced Loans Financial System PDL Financial System ROAE ROAA PDL Coverage Ratio Substandard Loans Coverage Ratio (1) Regulatory Capital/RWAs Loans & Deposits Penetration (As a % of GDP) 14.0% 13.9% 68% 13.8% 13.7% 59% 44% 30% 28% 27% 27% 26% 20% 16% 2010 2011 2012 2013 Chile Brazil Colombia Peru Mexico Loans/GDP Deposits/GDP Note: Banking System data as of December 31, 2012. Source: BCRP and SBS as of December 31, 2013. 6 (1) Substandard Loans = Past Due Loans + Refinanced and restructured loans

BANCO DE CRÉDITO DEL PERÚ - BCP 7

Credicorp Ltd. Assets: US$ 41 billion Net Income attributable to Credicorp: US$ 567.1 million Employees: 27,638 FuM: US$ 11.6 billion Assets: US$ 2.7 billion Assets: US$ 35.2 billion Collections: US$ 241 million Net Earned Premiums: NII: US$ 1,683 million Employees: 708 US$ 613.5 million Employees: 22,657 Employees: 3,154 Life Insurance Credicorp Capital Health Securities Insurance Credicorp Capital Peru The chart shows the main subsidiaries of Credicorp after the establishment of the regional investment banking platform under Credicorp Investments. IFRS Figures as of December 31, 2013. 8

BCP’s Competitive Position (1) Leading Financial Institution in Peru # 1 in Loans Rank Market Share (%) Wholesale Loans 1 35% 30% SME Loans 1 26% Microfinance Loans 1 20% Consumer Loans 1 21% Mortgage Loans 1 32% 20% Total Loans 1 30% 14% Demand Deposits 1 28% 10% Savings Deposits 1 34% Time Deposits 1 27% CTS Deposits 1 43% Total Deposits 1 28% Shareholders Equity 1 26% BCP BBVA Scotiabank Interbank Regulatory Capital 1 34% # 1 in Deposits # 1 in Net Income 29% 28% 21% 17% 15% 14% 10% 9% BCP BBVA Scotiabank Interbank BCP BBVA Scotiabank Interbank Source: SBS as of December 31, 2013. 9 (1) Market share is calculated from Peruvian Financial System. BCP includes Financiera Edyficar, Scotiabank includes Crediscotia and Interbank includes Financiera Uno.

BCP Highlights Total Net Loans & Deposits (USD Bn) Local Currency Net Loans & Deposits (S/. Bn) 62% 59% 57% 32.0 53% 31.5 51% 50% 29.3 46% 51% 23.6 22.7 23.2 22.2 22.8 21.5 20.0 18.1 17.1 17.5 16.4 14.7 13.9 2010 2011 2012 2013 2010 2011 2012 2013 Net Loans Deposits Net Loans Local Currency Deposits Local Currency Dollarization Net Loans Dollarization Deposits BCP´s Distribution Network & Transaction Breakout Foreign Currency Net Loans & Deposits (USD Bn) 89% 87% 86% 80% 8,300 7,923 389 367 6,504 2,091 1,844 11.7 345 11.3 11.0 10.5 5,002 9.7 1,485 9.0 8.7 8.8 330 1,159 5,820 5,712 4,674 3,513 2010 2011 2012 2013 2010 2011 2012 2013 Agents ATM's Branches Electronic Transactions Net Loans Foreign Currency Deposits Foreign Currency Source: BCP and SBS as of December 31, 2013. 10

Asset Structure Assets (USD 35.0Bn) Investments 10% 1.4 ; 4% Net loans Peruvian Central Bank 4.4 ; 13% Cash and Due from Banks 6% certificated notes Investments Peruvian Bonds Other assets Foreign government bonds 13% 51% Corporate and leasing bonds 7.7 ; 22% Listed equity securities 21.5 ; 61% 5% Other 15% Loans by Business Unit Loans by economic sector Other 22% Communication, Storage and 6% Transportation 7% Mining 14% 56% 10% 41% 42% 44% 45% Realty Business and Leasing 8% Services Electricity, Gas and Water 17% 22% 3% 10% 59% 58% 56% 55% Commerce 25% Manufacturing 2010 2011 2012 2013 Mortgage Consumer Wholesale Wholesale Retail SME Microfinance Source: BCP as of December 31, 2013. 11

Asset Quality PDL & Coverage Ratios (%) PDL by Days Overdue (%) 219% 217% 203% 167% 164% 165% 132% 1.35% 147% 1.40% 1.06% 0.60% 1.08% 0.97% 0.98% 0.97% 0.96% 0.67% 0.56% 0.51% 0.97% 0.70% 0.53% 2.32% 0.47% 1.75% 1.50% 1.43% 2010 2011 2012 2013 2010 2011 2012 2013 Overdue 120 days or more/Total Loans Refinanced Loans/Total Loans PDL/Total loans Overdue 16-119 days/Total Loans PDL Coverage ratio Substandard Loans Coverage Ratio(2) Overdue 90 days/Total Loans(1) PDL by Product (%) PDL by Currency (%) 8.70% 3.51% 6.14% 6.02% 2.97% 5.68% 2.42% 4.01% 2.23% 3.92% 4.03% 3.91% 3.28% 3.52% 3.08% 2.60% 2.67% 2.69% 1.89% 2.28% 1.06% 1.40% 1.31% 1.39% 0.81% 1.12% 0.71% 0.70% 1.30% 0.79% 0.54% 0.56% 2010 2011 2012 2013 2010 2011 2012 2013 Wholesale SME Microfinance Nuevos Soles Foreign currency Consumer Mortgage Edyficar Source: SBS, BCP as of December 31, 2013. 12 (1) As per Basel II definition. (2) Substandard Loans = Past Due Loans + Refinanced and restructured loans

Liabilities & Funding Structure Liabilities (USD 32.1 Bn) Total Deposits (USD 23.2 Bn) Demand Deposits Deposits 6.9; 30% 0.5; 2% Savings Deposits Due to Banks 4.1; 13% CTS Deposits Bonds Issued Time Deposits Other Liabilities 7.4; 32% 2.4; 10% 23.2; 72% 4.3; 13% 6.4; 28% Deposits by Business Unit Loans-to-deposits 116% 115% 5% 8% 8% 5% 102% 99% 97% 93% 96% 43% 51% 51% 50% 86% 95% 81% 74% 68% 49% 44% 44% 42% 2010 2011 2012 2013 2010 2011 2012 2013 Wholesale Retail Others (1) Nuevos Soles Foreign Currency Total Equity $2bn Others $1bn Source: BCP as of December 31, 2013. 13 (1) Includes BCB, Edyficar and other business units

Funding Structure & Maturity Profile Core Deposits(%) (1) Average Rates 80% 5.02% 4.94% 4.93% 4.79% 75% 74% 71% 71% 70% 70% 70% 66% 66% 69% 60% 1.37% 1.30% 1.22% 0.94% 2010 2011 2012 2013 2010 2011 2012 2013 Nuevos Soles Foreign Currency Total Total Deposits Due to banks and issued bonds Maturity Profile (MM USD) (2) 1,687 1,154 941 911 733 591 532 439 344 198 183 24 16 16 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2026+ Long Term Foreign Currency Short Term Foreign Currency Long Term Local Currency Equity $2bn Source: BCP as of December 31, 2013. 14 (1) % Core Deposits (Savings , demand and CTS deposits) /Total deposits. (2) Figures from BCP unconsolidated as of December 31,2013.