Credicorp : and Subsidiaries Report

CREDICORP LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022 (RESTATED)

CREDICORP LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2023 AND 2022 (RESTATED)

CONTENTS	Pages
Independent auditor's report
Consolidated statement of financial position	11
Consolidated statement of income	12 - 13
Consolidated statement of comprehensive income	14
Consolidated statement of changes in equity	15 - 16
Consolidated statement of cash flows	17 - 20
Notes to the consolidated financial statements	21 - 190

US$ = United States dollar

S/	= Sol
Bs	= Boliviano
$	= Colombian peso

• = Yen

Tanaka, Valdivia & Asociados

Sociedad Civil de R. L

Report of the Independent Auditors

To the Shareholders and Directors of Credicorp Ltd. and Subsidiaries

Opinion

We have audited the consolidated financial statements of Credicorp Ltd. and Subsidiaries (hereinafter "the Group"), which comprise the consolidated statement of financial position as of December 31, 2023, and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended; as well as the explanatory notes to the consolidated financial statements, which include a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023, as well as its consolidated financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board.

Basis for opinion

We conduct our audit in accordance with the International Standards on Auditing (ISAs) approved for application in Peru by the Board of Deans of Associations of Public Accountants of Peru. Our responsibilities under these standards are described in more detail in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Code of Ethics for Accounting Professionals of the International Ethical Standards Council for Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Peru, and we have complied with our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained provides a sufficient and adequate basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of the greatest importance in the audit of the financial statements for the current period. These matters were addressed in the context of the audit of the financial statements as a whole, and in forming our opinion thereon; so we do not provide a separate opinion on these matters. Based on the above, below is how each key issue was addressed during our audit.

Report of the Independent Auditors (continue)

We have complied with the responsibilities described in Auditor's responsibilities for the audit of the consolidated financial statements section of our report, including in relation to these

matters. Accordingly, our audit included the performance of procedures designed to respond to the risks of material misstatement assessed in the consolidated financial statements. The results of the audit procedures, including the procedures undertaken to address the matters mentioned below, form the basis for the audit opinion on the accompanying consolidated financial statements.

Key Audit Matters	Audit Response
Information Technology (IT) Environment

The Group's information technology (IT) environment consists of an infrastructure of a large number of key systems for the processing of its operations, accounting records and preparation of its consolidated financial statements. In addition, the Group's Management has designed a series of automatic controls, interfaces between the systems and executed calculations of the applications; with the aim of ensuring the completeness and accuracy of accounting records and accurate financial reports, and thus mitigating the potential risk of fraud or error.

In light of the above, we consider the information technology environment to be a key issue, as the Group depends on the efficient and continuous operation of IT applications as well as their automatic controls, so there is a risk that breaches in the IT control environment may result in accounting records being materially misstated.

With the support of our Information Technology (IT) specialists, our audit efforts focused on the key systems related to the processing of its operations, accounting records and preparation of the Group's consolidated financial statements; performing the following procedures:

• Evaluation of the Group's IT governance framework.
• Understanding of the control environment and identification of risks of IT processes.
• Testing key controls over application and data access management, program changes and application development, and IT operations.
• Testing of the design and operational effectiveness of the key automatic controls identified in the various relevant processes of the Group.
• Testing of the design and operational effectiveness of applicable compensation controls.

Provision for credit losses on loan portfolio

As described in notes 3(j), 7 and 30.1 of the Group's consolidated financial statements, the measurement of expected credit loss is

We gained an understanding, evaluated the design and tested the operational effectiveness of the controls of the expected loss provision

Report of the Independent Auditors (continue)

Key Audit Matters

Audit Response

based primarily on the product of the probability of default (PD), the loss given the default (LGD), and the exposure at the time of default (EAD), discounted at the reporting date and considering the expected macroeconomic effects. The expected credit loss impairment model reflects the present value of all cash deficit events related to the default events, either (i) over the next twelve months or (ii) over the expected life of the loan depending on its impairment from inception.

Significant assumptions and judgments considered by the Group, with respect to the estimation of the expected loss, include: (i) the probability of default, based on the debtor's payment behavior and credit risk management based primarily on the Group's internal rating and scoring models; (ii) the loss assigned for default, which is considered to determine the fair value of the guarantees and recoveries; (iii) the determination of the exposure balance at a future default date, which takes into account expected changes in exposure after the reporting date, including principal and interest repayments; (iv) forward-looking forecasts for multiple economic scenarios and the probability weighting of those scenarios; (v) the determination of when a loan has experienced a significant increase in credit risk; (vi) the individual analysis of corporate clients classified in phase 3, mainly considering the situation of the recoverability of the guarantees, analysis of financial statements and sector in which the debtor operates; (vii) the calculation of credit losses for 12 months and over the

estimation process for the Group's loan portfolio, which included the following procedures:

• Evaluation of the methodology and criteria established for the calculation according to IFRS9.
• Evaluation of the methodology and criteria related to the estimate made by the Group corresponding to the current situation of the El Niño phenomenon.
• Evaluation of the significant models and assumptions established by the Group in the calculation, such as: PD, LGD, EAD, scores, rating and forward-looking information forecasts for multiple economic scenarios and the probability weighting of those scenarios.
• Completeness and accuracy of the database in the Group's systems.
• Identification of impairment indicators and determination of significant changes in credit risk.
• Individual analysis of corporate clients classified in phase 3.
• Calculation of the expected loss estimate for the loan portfolio.
• Review of disclosures included in the notes to the consolidated financial statements.

In addition, with the support of our specialists, we carried out detailed substantive procedures, which included:

• Assessment that the methodology, assumptions and judgments used in the expected loss estimation models are consistent with the requirements of IFRS9 and the Group's accounting policies.
• Testing the completeness and accuracy of the data used in the calculation of the

Report of the Independent Auditors (continue)

Key Audit Matters

Audit Response

expected life of the credit agreement; and

1. the application of the judgment specifically for the current situation of the El Niño phenomenon affecting our country.

In view of the above, we consider that the estimate of expected loss for the loan portfolio is a key audit matter, given that any change in assumptions and/or judgments could have material effects on the calculation of the provision. In addition, the determination of accounting figures requires the participation of specialists due to the inherent complexity of the models, assumptions, judgments, prospective nature of the key assumptions, and the interrelationship of critical variables in the measurement.

provision and, selectively, checking the main data against the source systems.

• Comparison of the Group's macroeconomic projections (forward-looking information) with publicly available information from independent sources.
• Assessment of significant changes in credit risk triggers.
• Evaluation of the estimate made by the Group related to the current situation of the El Niño phenomenon.
• Evaluation of corporate clients classified in phase 3 that the Group analyzes individually.
• Independently testing the calculation of the estimate of the provision of credits.
• Assessment of adequate disclosure in the notes to the consolidated financial statements.

Estimation of liabilities for life insurance contracts under the general valuation model

As described in notes 3(f), 8 and 30.9 of the Group's consolidated financial statements, the estimation of insurance contract liabilities is based primarily on: (i) review and identification of insurance contracts; (ii) grouping of insurance contracts; (iii) determination of the valuation models by product (general model or block construction - BBA, variable rate - VFA and the simplified model - PPA); (iv) definition of the discount rate; (v) calculation of the risk adjustment and (vi) calculation of the contractual service margin (CSM). The projections of cash inflows and outflows related to each portfolio of insurance contracts consider their probability of

We gained an understanding, evaluated the design, and tested the operational effectiveness of the controls of the valuation process of life insurance contracts under the overall model, which included the following procedures:

• Review of the methodology and criteria established for calculation according to actuarial methods that are accepted under IFRS 17.
• Evaluation of the actuarial models, assumptions and assumptions of general acceptance, established by the Group.
• Review of the completeness and accuracy of the database used in the Group's information systems to manage, calculate and raise awareness of these liabilities.

Report of the Independent Auditors (continue)

Key Audit Matters

Audit Response

occurrence, and all cash flows that are within the contract limit are included.

To determine the assumptions and estimates, the Group relies on parameters derived from the experience of managing its portfolio. However, existing circumstances and assumptions about future developments could change due to changes in the market or circumstances beyond the Group's control. The parameters are kept up to date to reflect such changes in assumptions where necessary. In addition, the Group reevaluates the CSM each period considering the experience that the Group has had. The parameters used to estimate estimated future cash flows is a comparison between actual rates and estimated rates and the following assumptions are evaluated: mortality, longevity, disability, expenses, and falls.

Considering the above, we consider insurance liabilities to be a key audit matter, as any changes in assumptions and data could have material effects on the valuation of liabilities; In addition, the determination of accounting figures is complex and requires the involvement of specialists due to actuarial models.

• Review of the correct allocation of discount rates for the calculation of liabilities for life insurance contracts.
• Review of the calculation of the liability valuation estimate.
• Review of disclosures included in the notes to the consolidated financial statements.

In addition, with the support of our actuarial specialists, we carried out detailed substantive procedures, which included:

• Assessment that the methodology defined by the Group on actuarial models and assumptions is consistent with the application of IFRS 17.
• Independent evaluation of the actuarial model and assumptions used in the calculation.
• Proof of the completeness and accuracy of the policy data used, as well as the variables used in the calculation.
• Evaluation of the proper determination of the discount rate used in the calculations.
• Reconciliation of the discount rates charged to the application, where the calculations are determined, comparing them with those defined by the risk area.
• Proof, independently, of the calculation made by the Group.
• Evaluation of the appropriate movement of liabilities considering changes in actuarial assumptions at the end of the year.
• Evaluation of the sensitivity of changes in certain variables in the determination of these liabilities.
• Assessment of the adequacy of disclosures in the notes to the consolidated financial statements.

Report of the Independent Auditors (continue)

Other Matter

As described in Note 3(b) to the consolidated financial statements as of and for the year ended December 31, 2022, which are presented for comparative purposes, they have been restated due to the initial implementation of IFRS 17, Insurance Contracts. These restated consolidated financial statements, including their opening balance as of January 1, 2022, as well as the respective adjustments related to the retroactive effect of the implementation of IFRS 17 on those financial statements, were audited by other independent auditors, who expressed an unchanged opinion.

Other information included in the Group's 2023 Annual Report

Other information consists of the information included in the Annual Report, other than the consolidated financial statements and our audit report thereon. Management is responsible for the other information.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge gained in the audit or whether it otherwise appears to be materially misstated. If, based on the work we have done, we conclude that there is a material error in this other information, we are obliged to report that fact. We have nothing to report in this regard.

Responsibilities of the Group's management and those charged with corporate governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, Management is responsible for assessing the Group's ability to continue as a going concern, disclosing as appropriate matters relating to the going concern and using the going concern's accounting basis, unless Management intends to liquidate the Group or cease operations, or have no realistic alternative to doing so.

Report of the Independent Auditors (continue)

Those responsible for the Group's corporate governance are responsible for overseeing the Group's financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance as to whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report that includes our opinion. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements may arise due to fraud or error and are considered material if, individually or cumulatively, you could reasonably expect them to influence the economic decisions that users make based on the consolidated financial statements.

As part of an audit in accordance with the International Standards on Auditing (ISAs) approved for application in Peru by the Board of Deans of Associations of Public Accountants of Peru, we exercise professional judgment and maintain professional skepticism throughout the audit. Also:

• We identify and evaluate the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, design and execute audit procedures that respond to those risks, and obtain audit evidence that is sufficient and appropriate to provide us with a basis for our opinion. The risk of not detecting a material misstatement due to fraud is greater than that resulting from an error, as fraud may involve collusion, falsification, intentional omissions, misrepresentations, or overstepping the internal control system.
• We obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• We evaluate the adequacy of the accounting policies used, the reasonableness of the accounting estimates and the respective disclosures made by management.
• We conclude on the adequacy of Management's use of the going concern accounting basis and, based on the audit evidence obtained, whether there is material uncertainty related to events or conditions that may raise significant doubts about the Group's ability to continue as a going concern. If we conclude that there is a material uncertainty, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. The findings are based on the audit evidence obtained to date from our audit report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• We evaluate the overall presentation, structure, content of the consolidated financial statements, including disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves a fair presentation.

Report of the Independent Auditors (continue)

• We obtained sufficient and adequate audit evidence in relation to the financial information of the entities or business activities that are part of the Group, in order to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and execution of the Group's audit and therefore for our audit opinion.

We communicate to those charged for the Group's corporate governance, among other matters, the planned scope and timing of the audit, the significant findings of the audit, as well as any significant internal control deficiencies identified in the course of the audit.

We also provide those charged for the Group's corporate governance with a statement that we have complied with relevant ethical requirements in relation to independence and have communicated to them about all relationships and other matters that could reasonably affect our independence and, as appropriate, including the respective safeguards.

Among the matters that have been the subject of communication with those responsible for the Group's corporate governance, we have identified those that have been of the greatest significance in the audit of the consolidated financial statements for the current period and, therefore, are the key audit matters. We have described such matters in our audit report unless legal or regulatory provisions prohibit public disclosure of the matter or, in extremely rare circumstances, we determine that a matter should not be disclosed in our report because it would reasonably be expected that the adverse consequences of doing so would outweigh the public interest benefits of the report.

Lima, Peru

February 29, 2024

Endorsed by:

_______________________

Victor Tanaka Partner-in-Charge

C.P.C.C. Registration No. 25613