Credicorp : 3Q21 Interim Financial Statement

CREDICORP LTD. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021, AND DECEMBER 31, 2020

AND FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

Gaveglio Aparicio y Asociados Sociedad Civil de Responsabilidad Limitada.

Av. Santo Toribio 143, Piso 7, San Isidro, Lima, Perú T: [phone], F: [phone]www.pwc.pe

CREDICORP LTD. AND SUBSIDIARIES

Interim condensed consolidated financial statements as of September 30, 2021 and December 31, 2020 and for the three and nine-month periods ended September 30, 2021 and 2020

CONTENT	Pages
Report on review of interim condensed consolidated financial statements	1
Interim condensed consolidated statement of financial position	2
Interim condensed consolidated statement of income	3 - 4
Interim condensed consolidated statement of comprehensive income	5
Interim condensed consolidated statement of changes in net equity	6
Interim condensed consolidated statement of cash flows	7 - 9
Notes to the interim condensed consolidated financial statements	10 - 141

US$ = United States dollar

S/ = Sol

Report on review of interim financial statements

To the Shareholders

Credicorp Ltd. and subsidiaries

November 25, 2021

We have reviewed the accompanying interim condensed consolidated statement of financial position of Credicorp Ltd. and subsidiaries (the Company) as at September 30, 2021 and the related interim condensed consolidated statements of income and comprehensive income for the three-month and nine-month periods then ended, changes in equity and cash flows for the nine-month period ended September 30, 2021, and notes, comprising a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and presentation of this interim condensed consolidated financial statements in accordance with International Accounting Standard 34, 'Interim financial reporting'. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim financial reporting'.

Countersigned by

---------------------------------------------------(partner)

Carlos González González

Certified Public Accountant Registration No. 50403

Gaveglio Aparicio y Asociados Sociedad Civil de Responsabilidad Limitada.

Av. Santo Toribio 143, Piso 7, San Isidro, Lima, Perú T: [phone], F: [phone]www.pwc.pe

Gaveglio Aparicio y Asociados Sociedad Civil de Responsabilidad Limitada es una firma miembro de la red global de PricewaterhouseCoopers International Limited (PwCIL). Cada una de las firmas es una entidad legal separada e independiente que no actúa en nombre de PwCIL ni de cualquier otra firma miembro de la red. Inscrita en la Partida No. 11028527, Registro de Personas Jurídicas de Lima y Callao

CREDICORP LTD. AND SUBSIDIARIES

Interim condensed consolidated statement of financial position

As of September 30, 2021 (unaudited) and December 31, 2020 (audited)

	As of September		As of December		As of September		As of December
Note 30, 2021	31, 2020	Note	30, 2021	31, 2020
	S/(000)		S/(000)		S/(000)		S/(000)
Assets			Liabilities

Cash and due from banks:

Non-interest-bearing

Interest-bearing

Cash collateral, reverse repurchase agreements and securities borrowing

Investments:

At fair value through profit or loss

At fair value through other comprehensive income At fair value through other comprehensive income

pledged as collateral

				Deposits and obligations:
	8,360,631	8,176,612	Non-interest-bearing
	36,147,225		28,576,382	Interest-bearing
4	44,507,856	36,752,994
				Payables from repurchase agreements and securities lending
5(a)	2,555,337	2,394,302	Due to banks and correspondents
				Banker's acceptances outstanding
				Accounts payable to reinsurers
6(a)	6,661,600	6,467,471	Lease liabilities
				Financial liabilities at fair value through profit or loss
	32,953,602	42,746,061	Technical reserves for insurance claims and premiums
				Bonds and notes issued
	307,903		997,828	Deferred tax liabilities, net
6(b)	33,261,505	43,743,889	Other liabilities

Total liabilities

14
	54,546,530	47,623,119
	98,001,838		94,742,383
	152,548,368	142,365,502
5(b)	23,363,030	27,923,617
15	7,466,434	5,978,257
	776,863	455,343
9(b)	278,220	338,446
12(b)	707,319	750,578
	879,177	561,602
16	12,512,689	11,675,076
17	17,577,630	16,319,407
	117,300	105,529
13	9,609,917		5,487,159
	225,836,947	211,960,516

Amortized cost		5,642,069	2,196,220
Amortized cost pledged as collateral		2,545,282		2,766,162
	6(c)	8,187,351	4,962,382
					Equity, net	18
Loans, net:	7				Equity attributable to Credicorp's equity holders:
Loans, net of unearned income		146,551,226	137,659,885	Capital stock	1,318,993	1,318,993
Allowance for loan losses		(9,077,449)		(9,898,760)	Treasury stock	(207,745)	(208,433)
		137,473,777	127,761,125	Capital surplus	215,071	192,625
					Reserves	21,350,150	21,429,635
Financial assets designated at fair value through profit or loss	8	981,508	823,270	Other reserves	19,435	1,865,898
Premiums and other policies receivable	9(a)	801,531	937,223	Retained earnings (losses)		2,496,665		347,152
Accounts receivable from reinsurers and coinsurers	9(b)	1,097,493	919,419		25,192,569	24,945,870
Property, furniture and equipment, net	10	1,297,843	1,374,875
Due from customers on acceptances		776,863	455,343	Non-controlling interest		512,875		499,777
Intangible assets and goodwill, net	11	2,682,216	2,639,297	Total equity, net	25,705,444	25,445,647
Right-of-use assets, net	12(a)	613,635	702,928
Deferred tax assets, net		1,574,116	1,693,655
Other assets	13	9,069,760		5,777,990
Total assets		251,542,391		237,406,163	Total liabilities and net equity		251,542,391		237,406,163

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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CREDICORP LTD. AND SUBSIDIARIES

Interim condensed consolidated statement of income

For the three and nine-month periods ended September 30, 2021 and 2020 (unaudited)

		For the three-month period
		ended September 30, 2021
		and 2020 (unaudited)
		2021	2020
		S/(000)		S/(000)
Interest and similar income	22	3,051,000	2,953,570
Interest and similar expenses	22	(599,292)		(791,665)
Net interest, similar income and expenses		2,451,708	2,161,905
Provision for credit losses on loan portfolio	7(c)	(265,158)	(1,348,726)
Recoveries of written-off loans		100,744	42,821
Provision for credit losses on loan
portfolio, net of recoveries		(164,414)	(1,305,905)
Net interest, similar income and expenses,
after provision for credit losses on loan
portfolio		2,287,294	856,000
Other income
Commissions and fees	23	876,391	775,805
Net gain on foreign exchange transactions		238,886	155,028
Net gain on securities	24	24,829	147,202
Net gain (loss) on derivatives held for trading		43,086	(21,297)
Net gain from exchange differences		3,233	6,530
Others	29	52,258		39,498
Total other income		1,238,683	1,102,766
Insurance underwriting result
Net premiums earned	25	675,571	595,394
Net claims incurred for life, general and health
insurance contracts	26	(517,951)	(513,091)
Acquisition cost		(87,416)		(86,643)
Total insurance underwriting result		70,204	(4,340)
Other expenses
Salaries and employee benefits	27	(915,564)	(803,438)
Administrative expenses	28	(803,156)	(591,212)
Depreciation and amortization		(131,459)	(124,510)
Goodwill impairment loss	11(b)	−	(63,978)
Depreciation for right-of-use assets		(39,501)	(41,595)
Others	29	(88,114)		(177,276)
Total other expenses		(1,977,794)		(1,802,009)

For the nine-month period ended September 30, 2021 and 2020 (unaudited)

20212020

S/(000) S/(000)

8,758,652 8,844,548

(1,874,519) (2,341,766)

6,884,133 6,502,782

(1,329,147) (5,295,095)

243,706 107,252

(1,085,441) (5,187,843)

5,798,692 1,314,939

2,569,573 2,039,622

651,443 471,319

12,876 341,263

158,222 22,491

43,6219,526

189,172 192,463

3,624,907 3,076,684

1,959,443 1,775,390

(1,832,639) (1,215,376)

(258,182) (286,748)

(131,378) 273,266

(2,655,300) (2,520,618)

(2,056,803) (1,644,010)

(380,761) (373,035)

• (63,978)
  (120,833) (132,339)
  (304,815) (475,733)

(5,518,512) (5,209,713)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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