Credicorp (BAP) investor relations material

Strategic Vision, Growth Priorities, and Macroeconomic Context

• Focus on building a future-oriented ecosystem, driving innovation, expanding financial inclusion, and accelerating growth across cycles, with disciplined execution and talent development.

• Four strategic pillars: purpose (improving lives and financial inclusion), innovation (digital transformation and new business models), culture and talent (adaptability and critical thinking), and governance (global best practices and sustainability-linked compensation).

• Peru outperformed LatAm and the US in GDP growth and inflation from 2004–2024, with significant gains in per capita GDP and financial inclusion, but still has room for further growth in employment and formalization.

• Ambition to lead the financial sector in Latin America, decoupling from macroeconomic cycles through diversification and regional expansion.

• Yape, the digital wallet, is positioned as a catalyst for financial inclusion and is expected to become one of the largest businesses, with over 15 million active users and growing profitability.

Business Line Transformation, Ecosystem Expansion, and Innovation

• Universal banking is shifting toward more retail lending, efficient channels, and increased low-cost funding, targeting mid-20s ROE.

• Microfinance is recovering from recent macroeconomic shocks, focusing on smaller ticket sizes, higher NIM, and building resilience through income diversification and digital partnerships.

• Bancassurance aims to double clients by 2027 and reach 10% of net income, while Yape targets 3x revenue growth by 2028 and 18M+ MAUs.

• Supply chain finance is set to grow sixfold in five years, enabled by fintech partnerships and AI-driven risk models, aiming for 18-20% ROE.

• The innovation portfolio is well-diversified, with ~20% growth in initiatives, ~30% based outside Peru, and 2x YoY growth in risk-adjusted revenues.

Technology, Data, and Risk Management

• Digital transactions have increased from 36% to 97%, with transaction volume up 50x and cost per transaction down 10x.

• AI and data initiatives automate customer service, improve sales, and boost productivity, with tools like chatbots, GenIA, and Github Copilot widely deployed.

• Enhanced risk management, leveraging alternative data and AI, cut consumer loan model time-to-market by 43% and reduced provisions by 46% in one year.

• Cybersecurity is fully integrated, following international standards, and is a key enabler for sustainable growth.

• Technology investments enabled exponential transaction growth, with operating income up 1.4x since 2019 and IT OPEX rising to 8.4% of operating income.