Unassociated Document
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report of
Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 of the
Securities
Exchange Act of 1934
For
the month of November 2010
CREDICORP
LTD.
(Exact
name of registrant as specified in its charter)
Clarendon
House
Church
Street
Hamilton
HM 11 Bermuda
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
Form 20-F
x Form 40-F
o
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes o No x
|
CREDICORP
Ltd.
Third
Quarter 2010 Results
Lima, Peru, November 10, 2010 -
Credicorp (NYSE:BAP) announced today its unaudited results for the
third quarter of 2010. These results are reported on a consolidated basis
in accordance with IFRS in nominal U.S. Dollars.
|
|
HIGHLIGHTS
|
|
·
|
Credicorp
reported solid 3Q10 earnings of US$ 156.2 million, which despite
being down 3.5% QoQ, reflect a significant improvement in its core net
income of around 5% QoQ when excluding the extraordinary
non-recurrent income. This is also evidenced by an earnings growth of
28.4% YoY. Performance ratios reflected this good performance reaching
2.5% ROAA and 24.4 % ROAE.
|
·
|
These
good 3Q results confirm the recovered growth trend of 1H10 leading to a
strong total net income attributed to Credicorp for the first 9 months of
US$ 442 million, up 27.2% from 2009, and pushing Credicorp´s net earnings
for the year 2010 towards the high end of expectations.
|
·
|
The
continuing recovery of economic activity in the Peruvian market is again
reflected in Q-end loan balances, which grew 5.6% from last Q
accumulating 25.6% loan growth for the year to date.
|
·
|
NII
grew 5% this Q keeping pace with loan growth and NIM remained flat at 5%,
though some impact on NIMs from our A&L management strategy was
evident at BCP.
|
·
|
Non-financial
income, excluding the extraordinary non-recurrent gains on the sale of
securities of last and the current Qs, was up 7.7% following a strong
increase in fee income of 4.9%, and 11.0% growth in gains from FX
transactions.
|
·
|
An
improvement of our PDL ratio to 1.6% in 3Q10 was recorded as the absolute
volumes of past due loans dropped and our loan portfolio expanded.
Nevertheless, our conservative internal policy on coverage and provisions,
as well as regulatory changes that required more provisions resulted in
stronger provisions than originally projected reaching US$ 52 million, up
69.3% from last Q. Therefore, our coverage was up to 193.1% from 179.3% of
last Q.
|
·
|
The
continuing good performance of the insurance business is reflected in the
US$ 44.2 million income, almost flat from last Q´s US$ 45.5 million income
from insurance premiums net of claims, and 22.8% stronger YoY. YTD
performance shows also a substantial 31.1% higher premium income compared
with the same period of 2009.
|
·
|
After
2 consecutive QoQ drops in operating costs, these were 3.4% up this Q
reflecting new recruiting for future growth and investments in training
& advisory services as we develop business opportunities.
Nevertheless, the strong income generation led to a slight further
improvement in the efficiency ratio to 39.4% from 39.6%, continuing the
good trend since last year.
|
·
|
However,
the stronger income could not fully offset the significantly higher
provisions incurred this 3Q, and core operating income for Credicorp
dropped 2.2% QoQ. Including the extraordinary non-recurrent gains from the
sale of securities, total operating income was down 8.6% for the Q. YTD
results however, reveals the real performance, with core operating income
increasing 36.7% and total operating income, including non-recurrent
income, increasing a solid 23.7% for the year.
|
·
|
BCP’s
3Q operating results also reflect solid growth in average daily lending
volumes of 5.5% and a minimal 0.9% increase in operating costs. Even
though provisions for loan losses registered a significant increase,
despite the improvement of portfolio quality indicators, operating result
was 2.6% up QoQ, excluding non-recurrent gains in securities. The large
difference in non-recurrent income QoQ resulted in total operating income
dropping 6.3% QoQ, a drop that was compensated by translation gains given
the careful A&L management that took advantage of the USD weakness,
and lower tax provisions due to tax benefits generated by investments in
CDs of BCR. Thus, net contribution to Credicorp was up 3.4% reaching US$
135.2 million for 3Q10, which reflects a strong ROAE of 31.3% and ROAA of
2.5%.
|
·
|
ASHC’s
contribution to Credicorp this 3Q was down to US$ 10.6 million from US$
13.1 million in 2Q basically because of increased provisions as it took a
very conservative stance.
|
·
|
The
low casualty levels from which PPS´s results were benefitting, increased
across the board, leading to a reduction in technical results. PV had the
lion´s share of this effect, in addition to excellent sales in life
policies which in the short run generate high reserves affecting
negatively technical results. Thus, bottom line of the insurance business
reflects this and its contribution to Credicorp dropped to a still very
solid US$ 10.4 million for the 3Q from US$ 12.5 million in 2Q.
|
·
|
Prima
AFP maintained the excellent results from previous Qs and reported 4.1%
higher fee income, 3.8% higher operating income but lower bottom line
results due to higher income taxes, leading to a stable contribution to
Credicorp of US$ 5.7 million
|
·
|
Overall,
Credicorp had a very good 3Q which contributed to excellent income
generation in all businesses reaching growth rates largely beyond 20% for
the first 9 months, plus a 24.4% ROAE, a 1.6% PDL ratio and an improved
efficiency ratio of 39.4% for the period.
|
I.
Credicorp Ltd.
Overview
Credicorp
reported solid 3Q10 earnings of US$ 156.2 million, which despite being down 3.5%
QoQ, reflect a significant improvement in its core bottom line results of around
5% QoQ when excluding extraordinary non-recurrent income. This good performance
is also evidenced by an excellent 27.2% YoY earnings growth. Performance ratios
reflect these good results reaching excellent levels: 2.5% ROAA and 24.4 %
ROAE.
These
good 3Q results confirm the recovered growth trend of the first half of the year
leading to a strong total net income attributed to Credicorp for the first 9
months of US$ 442 million, up a very strong 27.2% from 2009, and setting the
base for Credicorp´s net earnings for the year 2010 to reach a level closer to
the high end of expectations.
The
continuing and strong recovery of economic activity in the Peruvian market
became even more evident in this second half of the year and is undoubtedly
driving growth in the loan portfolio. Q-end loan balances grew 5.6% QoQ,
revealing a 25.6% loan growth pace for the year. Once again, strong growth
was reported both in the wholesale and in the retail segments, which expanded
their average daily balances by 5.0% and 5.6% respectively QoQ. Overall average
loan book growth was 5.5% within this Q, stronger than the average daily
balances growth of 3.5% reported last Q. With respect to growth, star performers
continued being the SME (PYME) sector and micro-lending in the Retail
Banking segment, though the middle market segment of the wholesale business also
performed strongly.
An
improvement of our PDL ratio to 1.6% in 3Q10 was recorded as our loan portfolio
grew at the above mentioned rates, and the absolute volumes of past due loans
dropped. Nevertheless, our conservative internal policy on coverage and
provisions, as well as regulatory changes that required more provisions resulted
in stronger provisions than originally projected reaching US$ 52 million, up
69.3% from last Q. Therefore, our coverage was up to 193.1% from 179.3% of last
Q
Interest
income was strong, growing 8.9% QoQ following the solid expansion of our loan
portfolio and also strong growth of other interest earning assets through a 9.1%
expansion in deposits. Interest expense increased however at a stronger pace.
Notwithstanding, NIMs at Credicorp remained flat at 4.85% despite some pressure
on NIMs at BCP given the strong growth of the wholesale portfolio and high
levels of liquidity invested at the Central Bank with small
margins.
Non-financial
income, excluding the extraordinary non-recurrent gains on the sale of
securities in this and last Q, was up 7.7% following a strong increase in fee
income of 4.9%, and 11.0% growth in gains from FX transactions.
The
insurance business also performed well with income from net insurance premiums
(net of claims) this 3Q remaining strong at US$ 44.2 million after claims,
similar to last Q´s performance. Net income generated however did experience
some contraction as we will explain further down.
After two
consecutive QoQ drops in operating costs, these were 3.4% up this Q reflecting
new recruiting for future growth and investments in training & advisory
services as we develop business opportunities. Nevertheless, the strong income
generation led to a slight further improvement in the efficiency ratio to 39.4%
from 39.6%.
Despite
all the good income generation reported, the significantly higher provisions
incurred this 3Q could not be fully offset and core operating income for
Credicorp dropped by 2.2% QoQ. Furthermore, including the extraordinary gains
from the sale of securities which were stronger in 2Q than in 3Q, total
operating income dropped 8.6% for the Q.
Credicorp
Ltd.
|
|
Quarter
|
|
|
Change
%
|
|
|
Year
to date
|
|
|
Change
%
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep
10
|
|
|
Sep
09
|
|
|
Sep 10 / Sep 09
|
|
Net
Interest income
|
|
|
271,438 |
|
|
|
258,434 |
|
|
|
214,547 |
|
|
|
5.0 |
% |
|
|
26.5 |
% |
|
|
775,457 |
|
|
|
653,955 |
|
|
|
18.6 |
% |
Net
provisions for loan losses
|
|
|
(52,303 |
) |
|
|
(30,895 |
) |
|
|
(38,216 |
) |
|
|
69.3 |
% |
|
|
36.9 |
% |
|
|
(126,379 |
) |
|
|
(119,348 |
) |
|
|
5.9 |
% |
Non
financial income
|
|
|
193,987 |
|
|
|
196,554 |
|
|
|
162,596 |
|
|
|
-1.3 |
% |
|
|
19.3 |
% |
|
|
558,349 |
|
|
|
506,741 |
|
|
|
10.2 |
% |
Insurance
premiums and claims
|
|
|
44,220 |
|
|
|
45,517 |
|
|
|
36,018 |
|
|
|
-2.9 |
% |
|
|
22.8 |
% |
|
|
122,224 |
|
|
|
93,195 |
|
|
|
31.1 |
% |
Operating
expenses
|
|
|
(243,281 |
) |
|
|
(235,321 |
) |
|
|
(211,568 |
) |
|
|
3.4 |
% |
|
|
15.0 |
% |
|
|
(716,300 |
) |
|
|
(638,575 |
) |
|
|
12.2 |
% |
Operating
Income
|
|
|
214,060 |
|
|
|
234,289 |
|
|
|
163,377 |
|
|
|
-8.6 |
% |
|
|
31.0 |
% |
|
|
613,350 |
|
|
|
495,968 |
|
|
|
23.7 |
% |
Core
operating income
|
|
|
204,423 |
|
|
|
208,940 |
|
|
|
163,377 |
|
|
|
-2.2 |
% |
|
|
25.1 |
% |
|
|
578,364 |
|
|
|
423,241 |
|
|
|
36.7 |
% |
Non
core operating income*
|
|
|
9,637 |
|
|
|
25,349 |
|
|
|
- |
|
|
|
-62.0 |
% |
|
|
- |
|
|
|
34,986 |
|
|
|
72,727 |
|
|
|
-51.9 |
% |
Translation
results
|
|
|
14,467 |
|
|
|
4,675 |
|
|
|
12,046 |
|
|
|
209.4 |
% |
|
|
20.1 |
% |
|
|
31,202 |
|
|
|
11,296 |
|
|
|
176.2 |
% |
Worker's
profit sharing and income taxes
|
|
|
(62,941 |
) |
|
|
(65,611 |
) |
|
|
(45,285 |
) |
|
|
-4.1 |
% |
|
|
39.0 |
% |
|
|
(173,454 |
) |
|
|
(135,801 |
) |
|
|
27.7 |
% |
Net
income
|
|
|
165,586 |
|
|
|
173,353 |
|
|
|
130,139 |
|
|
|
-4.5 |
% |
|
|
27.2 |
% |
|
|
471,098 |
|
|
|
371,463 |
|
|
|
26.8 |
% |
Minority
Interest
|
|
|
9,360 |
|
|
|
11,429 |
|
|
|
8,432 |
|
|
|
-18.1 |
% |
|
|
11.0 |
% |
|
|
29,078 |
|
|
|
23,976 |
|
|
|
21.3 |
% |
Net
income attributed to Credicorp
|
|
|
156,226 |
|
|
|
161,924 |
|
|
|
121,707 |
|
|
|
-3.5 |
% |
|
|
28.4 |
% |
|
|
442,020 |
|
|
|
347,487 |
|
|
|
27.2 |
% |
Net
income / share (US$)
|
|
|
1.96 |
|
|
|
2.03 |
|
|
|
1.53 |
|
|
|
-3.5 |
% |
|
|
28.4 |
% |
|
|
5.54 |
|
|
|
4.36 |
|
|
|
27.2 |
% |
Total
loans
|
|
|
13,409,258 |
|
|
|
12,697,597 |
|
|
|
10,675,462 |
|
|
|
5.6 |
% |
|
|
25.6 |
% |
|
|
13,409,258 |
|
|
|
10,675,462 |
|
|
|
25.6 |
% |
Deposits
and obligations
|
|
|
16,652,009 |
|
|
|
15,257,042 |
|
|
|
13,672,287 |
|
|
|
9.1 |
% |
|
|
21.8 |
% |
|
|
16,652,009 |
|
|
|
13,672,287 |
|
|
|
21.8 |
% |
Net
shareholders' equity
|
|
|
2,689,315 |
|
|
|
2,433,065 |
|
|
|
2,130,102 |
|
|
|
10.5 |
% |
|
|
26.3 |
% |
|
|
2,689,315 |
|
|
|
2,130,102 |
|
|
|
26.3 |
% |
Net
interest margin
|
|
|
4.85 |
% |
|
|
4.99 |
% |
|
|
4.72 |
% |
|
|
|
|
|
|
|
|
|
|
5.05 |
% |
|
|
4.78 |
% |
|
|
|
|
Efficiency
ratio
|
|
|
39.4 |
% |
|
|
39.6 |
% |
|
|
39.8 |
% |
|
|
|
|
|
|
|
|
|
|
40.3 |
% |
|
|
41.4 |
% |
|
|
|
|
Return
on average shareholders' equity
|
|
|
24.4 |
% |
|
|
27.5 |
% |
|
|
24.0 |
% |
|
|
|
|
|
|
|
|
|
|
24.2 |
% |
|
|
24.8 |
% |
|
|
|
|
PDL
/ total loans
|
|
|
1.59 |
% |
|
|
1.70 |
% |
|
|
1.55 |
% |
|
|
|
|
|
|
|
|
|
|
1.59 |
% |
|
|
1.55 |
% |
|
|
|
|
Coverage
ratio of PDLs
|
|
|
193.1 |
% |
|
|
179.3 |
% |
|
|
191.7 |
% |
|
|
|
|
|
|
|
|
|
|
193.1 |
% |
|
|
191.7 |
% |
|
|
|
|
Employees
|
|
|
19,012 |
|
|
|
19,174 |
|
|
|
19,269 |
|
|
|
|
|
|
|
|
|
|
|
19,012 |
|
|
|
19,269 |
|
|
|
|
|
*
It refers to a net gain on sales of securities (non financial
income)
Offsetting
to some extent the drop in total operating income, and following strict A&L
management guidelines, some advantage was taken from the dollar weakness and a
translation gain was reported. Thus net income reached US$ 165.6 million, which
resulted in net income attributable to Credicorp of US$ 156.2
million.
The
excellent performance of Credicorp is significantly more evident looking at year
to date numbers, with operating income up by 23.7% and core operating income up
by an even stronger 36.7%, leading to total net income generated by Credicorp of
US$ 471.1 million, of which US$ 442.0 million are attributable to Credicorp and
represent an impressive income growth of 27.2% for the YTD. This performance
reflects a 24.2% ROAE, 2.5% ROAA, 5.1% NIM, 40.3% efficiency ratio and 1.59% PDL
ratio with 193.1% coverage, by all means, more than satisfying results and all
at the high end of expected targets.
Credicorp
– The Sum of Its Parts
The good
3Q10 results of Credicorp are this time somewhat hidden by different elements,
but looking through the numbers and especially at year to date results, the
excellence of its performance becomes evident.
Furthermore,
as we expressed last Q, the recovery in economic activity has not only
reactivated loan growth, but further increased the good levels of income at the
asset management subsidiaries and spurred growth in insurance activity, leading
to consistently strong numbers.
BCP’s 3Q
operating results also reflect solid growth in average daily lending volumes of
5.5% and a minimal 0.9% increase in operating costs. Even though provisions
for loan losses registered a significant increase, despite the improvement of
portfolio quality indicators, operating result was 2.6% up QoQ, excluding
non-recurrent gains in securities. The large difference in non-recurrent income
QoQ resulted in total operating income dropping 6.3% QoQ, a drop that was
compensated by translation gains given the careful A&L management that took
advantage of the USD weakness, and lower tax provisions due to tax benefits
generated by investments in CDs of BCR. Thus, net contribution to Credicorp was
up 3.4% reaching US$ 135.2 million for 3Q10, which reflects a strong ROAE of
31.3% and ROAA of 2.5%.
Furthermore,
income generation has gone up 20.7% YTD, certainly beating all expectations. YTD
numbers reveal also that interest income is up by 16.4% while provisions rise
only 5.9% for the year, certainly smoothing down the perception of strong rise
in provisions of last Q. Non financial income is up by 10.8% given that
non-recurrent gains on the sale of securities in 2009 reached a all time high,
which in turn disguised an impressive growth in banking services commissions of
32.2%. The efforts on the expense side are also reflected in expense growth of
only 11.6% for the year, an achievement in the midst of strong portfolio and
business expansion. This excellent performance, added to a sound A&L
management that generated some translation gains resulted in the impressive net
earnings growth mentioned of 29.2% for the year reaching US$ 374.8 million.
BCP’s ratios reflect these improvements with ROAE at 29.3%, ROAA at 2.3%.
Therefore,
BCP´s contribution to Credicorp’s bottom line reached US$ 135.2 million this 3Q
vs. US$ 130.7 million in 2Q, while on a cumulative basis, net income
contribution totaled US$ 365.2 million for the YTD vs. US$ 284.0 million for the
same period in 2009, an increase of 28.6%.
Earnings
contribution
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Banco
de Crédito BCP(1)
|
|
|
135,216 |
|
|
|
130,761 |
|
|
|
98,826 |
|
|
|
3.4 |
% |
|
|
36.8 |
% |
|
|
365,231 |
|
|
|
283,983 |
|
|
|
28.6 |
% |
BCB
|
|
|
3,442 |
|
|
|
3,318 |
|
|
|
7,086 |
|
|
|
3.7 |
% |
|
|
-51.4 |
% |
|
|
12,370 |
|
|
|
20,851 |
|
|
|
-40.7 |
% |
Financiera
Edyficar
|
|
|
5,316 |
|
|
|
4,980 |
|
|
|
- |
|
|
|
6.8 |
% |
|
|
- |
|
|
|
17,113 |
|
|
|
- |
|
|
|
- |
|
Atlantic
|
|
|
10,603 |
|
|
|
13,076 |
|
|
|
8,444 |
|
|
|
-18.9 |
% |
|
|
25.6 |
% |
|
|
37,090 |
|
|
|
14,860 |
|
|
|
149.6 |
% |
PPS
|
|
|
10,439 |
|
|
|
12,518 |
|
|
|
10,088 |
|
|
|
-16.6 |
% |
|
|
3.5 |
% |
|
|
31,449 |
|
|
|
25,003 |
|
|
|
25.8 |
% |
Grupo
Crédito (2)
|
|
|
6,069 |
|
|
|
6,119 |
|
|
|
6,878 |
|
|
|
-0.8 |
% |
|
|
-11.8 |
% |
|
|
20,136 |
|
|
|
21,008 |
|
|
|
-4.2 |
% |
Prima
|
|
|
5,696 |
|
|
|
5,857 |
|
|
|
5,661 |
|
|
|
-2.7 |
% |
|
|
0.6 |
% |
|
|
17,499 |
|
|
|
16,574 |
|
|
|
5.6 |
% |
Others
|
|
|
373 |
|
|
|
262 |
|
|
|
1,217 |
|
|
|
42.4 |
% |
|
|
-69.4 |
% |
|
|
2,637 |
|
|
|
4,434 |
|
|
|
-40.5 |
% |
Credicorp
and others (3)
|
|
|
(6,101 |
) |
|
|
(550 |
) |
|
|
(2,529 |
) |
|
|
-1009.3 |
% |
|
|
-141.2 |
% |
|
|
(11,886 |
) |
|
|
2,633 |
|
|
|
-551.4 |
% |
Credicorp
Ltd.
|
|
|
(5,844 |
) |
|
|
(274 |
) |
|
|
(2,994 |
) |
|
|
-2031.3 |
% |
|
|
-95.2 |
% |
|
|
(11,342 |
) |
|
|
1,205 |
|
|
|
-1041.2 |
% |
Others
|
|
|
(257 |
) |
|
|
(276 |
) |
|
|
465 |
|
|
|
6.8 |
% |
|
|
-155.3 |
% |
|
|
(544 |
) |
|
|
1,428 |
|
|
|
-138.1 |
% |
Net
income attributable to Credicorp
|
|
|
156,226 |
|
|
|
161,924 |
|
|
|
121,707 |
|
|
|
-3.5 |
% |
|
|
28.4 |
% |
|
|
442,020 |
|
|
|
347,487 |
|
|
|
27.2 |
% |
(1)
Includes Banco de Crédito de Bolivia and Financiera Edyficar.
(2)
Includes Grupo Crédito, Servicorp and Prima AFP
(3)
Includes taxes on BCP's and PPS's dividends, and other expenses at the holding
company level.
BCP
Bolivia reported this 3Q a modest increase in earnings contribution of 3.7%
mainly driven by lower provisions as the Bolivian financial market remains
stable, but certainly subdued compared to the previous year. Loan growth however
was strong reaching 8.6% QoQ, though this did not translate into higher NII
revealing further compression of margins, which is to a large extent the result
of the prevailing economic, political and regulatory environment. Overall,
profitability continues dropping; as also reflected by a further drop in ROAE to
18.3% from 20.0% the previous Q. For the YTD, BCP Bolivia reports a 40.7% drop
in income contribution to US$ 12.4 million, whereby this will probably set the
new level of income that can be achieved within the existent economic
framework.
Edyficar,
BCP’s micro-lending vehicle has in turn reported a very good business evolution
with lending activity growing at a very strong pace of 10.1% this
Q. Reported contribution to Credicorp shows a 6.8% increase QoQ, which
reflects strong loan growth and the low level of provisions this year.
Therefore, Edyficar continues being a strong performer and a fast growing
business and has accumulated a contribution to Credicorp of US$ 17.1 million for
the first 9 months reflecting a ROAE of 24.6%.
ASHC’s
reported a slip in contribution this 3Q down from US$ 13.0 million to US$ 10.6
million as a result of conservative provisions made for some investments on its
portfolio since income generation, both interest income and fee income, remained
stable increasing slightly by 1.9% for the Q. For the YTD however, the
substantial improvement in ASHC´s performance is evident with a total
contribution to Credicorp more than doubling from US$ 14.9 million in 2009 to
US$ 37.1 million in 2010 as a consequence of the recovery in the asset
management business internationally and the substantial changes in the business
structure and professionalization of services at Credicorp.
The low
casualty levels, from which PPS´s results were benefitting, increased across the
board leading to a reduction in technical results. PV had the lion´s share of
this effect, in addition to excellent sales in life policies which in the short
run generate high reserves affecting negatively technical results. Thus, bottom
line of the insurance business reflects this and its contribution to Credicorp
dropped to a still very solid US$ 10.4 million for the 3Q from US$ 12.5 million
in 2Q. Nevertheless, also this business shows the significant improvement of its
earnings generation capacity when looking at the accumulated earnings and
contribution to Credicorp for the YTD, which reached US$ 31.5 million vs. US$
25.0 million in 2009, which in turn was already a very good year. Furthermore,
having announced the acquisition of ALICO’s shares in the insurance group,
future contributions to Credicorp will include such additional share and reflect
a more substantial role in Credicorp’s income generation.
Finally, Prima
AFP maintained the excellent results from previous Qs and reported 4.1% higher
fee income, 3.8% higher operating income but lower bottom line results due to
higher income taxes, leading to a stable contribution to Credicorp of US$ 5.7
million for the Q, and a YTD contribution of US$ 17.5 million up 5.6% from US$
16.6 million in 2009.
Credicorp
Ltd.’s line includes the provisions for withholding taxes on dividends paid to
Credicorp and eventually translation effects, though in 2Q it showed a strong
reduction since such tax provisions were compensated by dividend & interest
income from investments in some selected Peruvian stocks and bonds recorded
during the period, which are today held at Credicorp Ltd. and previously booked
at Grupo Crédito.
Though
the 3Q results of all subsidiaries given the effects explained led to a drop in
total net earnings of Credicorp for the Q of 3.5%, the good performance of all
of Credicorp’s subsidiaries throughout the year led to a substantial 27.2% QoQ
increase in net income attributable to Credicorp for this first 9 months of the
year, a remarkable performance that puts Credicorp´s earnings at the high end of
expectations.
II.
Banco de Crédito – BCP - Consolidated
Summary
3Q10
During
the third quarter of this year, BCP achieved its best quarterly result to date.
This reflects the fact that the financial system continues to expand alongside
solid growth in the Peruvian economy, which accumulated 8.4% growth from January
to August this year.
BCP’s net
income totaled US$ 138.6 million in 3Q10, which represented a 3.3% increase QoQ
and 26.6% YoY. The year’s accumulated results showed that net income grew 29.2%
with regard to the level reported for January-September 2009.
It is
important to point out that operating income, excluding extraordinary income,
also expanded significantly to total US$ 162.6 million, which was 2.6% higher
than the US$ 158.5 million generated in 2Q10.
Banco
de Credito and Subsidiaries
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Net
financial income
|
|
|
242,274 |
|
|
|
228,652 |
|
|
|
197,262 |
|
|
|
6.0 |
% |
|
|
22.8 |
% |
|
|
690,101 |
|
|
|
592,883 |
|
|
|
16.4 |
% |
Total
provisions for loan loasses
|
|
|
(52,614 |
) |
|
|
(31,183 |
) |
|
|
(38,917 |
) |
|
|
68.7 |
% |
|
|
35.2 |
% |
|
|
(127,242 |
) |
|
|
(120,171 |
) |
|
|
5.9 |
% |
Non
financial income
|
|
|
167,348 |
|
|
|
169,541 |
|
|
|
129,689 |
|
|
|
-1.3 |
% |
|
|
29.0 |
% |
|
|
474,730 |
|
|
|
428,524 |
|
|
|
10.8 |
% |
Operating
expenses
|
|
|
(184,751 |
) |
|
|
(183,180 |
) |
|
|
(161,093 |
) |
|
|
0.9 |
% |
|
|
14.7 |
% |
|
|
(553,264 |
) |
|
|
(495,774 |
) |
|
|
11.6 |
% |
Operating
Income
|
|
|
172,257 |
|
|
|
183,830 |
|
|
|
126,941 |
|
|
|
-6.3 |
% |
|
|
35.7 |
% |
|
|
484,325 |
|
|
|
405,462 |
|
|
|
19.5 |
% |
Core
operating income
|
|
|
162,620 |
|
|
|
158,481 |
|
|
|
126,941 |
|
|
|
2.6 |
% |
|
|
28.1 |
% |
|
|
449,339 |
|
|
|
332,735 |
|
|
|
35.0 |
% |
Non
core operating income*
|
|
|
9,637 |
|
|
|
25,349 |
|
|
|
- |
|
|
|
-62.0 |
% |
|
|
- |
|
|
|
34,986 |
|
|
|
72,727 |
|
|
|
-51.9 |
% |
Translation
results
|
|
|
12,896 |
|
|
|
4,972 |
|
|
|
10,204 |
|
|
|
159.4 |
% |
|
|
26.4 |
% |
|
|
29,548 |
|
|
|
(4,955 |
) |
|
|
693.3 |
% |
Worker's
profit sharing and income taxes
|
|
|
(46,382 |
) |
|
|
(54,454 |
) |
|
|
(35,400 |
) |
|
|
-14.8 |
% |
|
|
31.0 |
% |
|
|
(138,582 |
) |
|
|
(14,422 |
) |
|
|
860.9 |
% |
Net
income
|
|
|
138,620 |
|
|
|
134,221 |
|
|
|
101,456 |
|
|
|
3.3 |
% |
|
|
36.6 |
% |
|
|
374,750 |
|
|
|
289,980 |
|
|
|
29.2 |
% |
Net
income / share (US$)
|
|
|
0.062 |
|
|
|
0.060 |
|
|
|
0.046 |
|
|
|
3.3 |
% |
|
|
36.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
|
13,326,601 |
|
|
|
12,611,066 |
|
|
|
10,572,063 |
|
|
|
5.7 |
% |
|
|
26.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
and obligations
|
|
|
15,642,366 |
|
|
|
14,209,963 |
|
|
|
13,946,714 |
|
|
|
10.1 |
% |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholders´ equity
|
|
|
1,864,471 |
|
|
|
1,679,754 |
|
|
|
1,556,224 |
|
|
|
11.0 |
% |
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
financial margin
|
|
|
4.81 |
% |
|
|
4.91 |
% |
|
|
4.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
46.3 |
% |
|
|
48.0 |
% |
|
|
48.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average equity
|
|
|
31.3 |
% |
|
|
33.0 |
% |
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PDL
/ Total loans
|
|
|
1.59 |
% |
|
|
1.71 |
% |
|
|
1.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage
ratio of PDLs
|
|
|
193.3 |
% |
|
|
179.5 |
% |
|
|
191.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIS
ratio
|
|
|
13.9 |
% |
|
|
13.6 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
324 |
|
|
|
325 |
|
|
|
330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agentes
BCP
|
|
|
3,354 |
|
|
|
3,086 |
|
|
|
2,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATMs
|
|
|
1,109 |
|
|
|
1,062 |
|
|
|
951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
|
|
|
15,650 |
|
|
|
15,775 |
|
|
|
15,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* It refers to a net gain on sales
of securities (non financial income)
Excellent
quarterly performance in 3Q10 as compared to 2Q10 was primarily due
to:
|
i) 6.0%
QoQ growth in net interest income (NII) due to higher interest income
related to loan growth;
|
|
ii)
Higher translation results as a result of appropriate asset &
liability management; and
|
|
iii)
Lower tax levels, which are primarily explained by the tax shelter
obtained from investments in BCR
CDs.
|
The
aforementioned helped offset the 68.7% QoQ increase in provisions for loans and
lower non-recurrent financial income. The latter was explained by a drop in
earnings from sales of securities, which was significant in the 2nd and less is
volume in this 3rd quarter following the Government’s bond
repurchase.
A
comparison with 3Q09’s results shows growth of 36.6% in net income and 35.7% in
operating income. In terms of the latter, the 22.8% increase in NII was
particularly noteworthy along with 29.0% growth in non-financial income
(primarily due to the 29.5% increase in fees for banking services) and higher
translation results.
Assets
reported 12.5% growth QoQ due to an increase in net loans (+5.7% QoQ) and higher
securities available for sale (+43.9% QoQ). The latter was associated with a
successful treasury management strategy to invest in relatively low cost funding
options such as Peruvian government instruments, which are attractive due to the
rates offered and the tax shelter they generate.
Good
results in the third quarter also include a declining past due ratio, which went
from 1.71% at the end of 2Q10 to 1.59% at the end of 3Q10. As we will explain in
greater detail later on, this contraction was due to loan growth and a reduction
in the past due portfolio.
BCP
achieved improvement in operating efficiency for the third consecutive quarter
this year. This was evident in an improvement in the efficiency ratio, which
dropped from 48.0% in 2Q10 to 46.3% in 3Q10. This quarter’s level is even lower
than the 48.8% registered in 3Q09.
Finally,
ROAE and ROAA reached very satisfactory levels of 31.3% and 2.5%,
respectively.
Core
Earnings
Core
earnings
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Net
interest and dividend income
|
|
|
242,274 |
|
|
|
228,652 |
|
|
|
197,262 |
|
|
|
6.0 |
% |
|
|
22.8 |
% |
|
|
690,101 |
|
|
|
592,883 |
|
|
|
16.4 |
% |
Fee
income, net
|
|
|
120,839 |
|
|
|
113,577 |
|
|
|
93,348 |
|
|
|
6.4 |
% |
|
|
29.5 |
% |
|
|
341,639 |
|
|
|
258,521 |
|
|
|
32.2 |
% |
Net
gain on foreign exchange transactions
|
|
|
26,354 |
|
|
|
23,595 |
|
|
|
25,559 |
|
|
|
11.7 |
% |
|
|
3.1 |
% |
|
|
75,452 |
|
|
|
65,587 |
|
|
|
15.0 |
% |
Core
earnings
|
|
|
389,467 |
|
|
|
365,824 |
|
|
|
316,169 |
|
|
|
6.5 |
% |
|
|
23.2 |
% |
|
|
1,107,192 |
|
|
|
916,991 |
|
|
|
20.7 |
% |
In 3Q10,
BCP’s core earnings totaled US$ 389.5 million, which represented a 6.5% increase
with regard to 2Q10’s figure and toped 3Q09’s level by 23.2%. Favorable
performance this quarter was due primarily to:
|
i)
The 6.0% increase in NII, which was primarily attributable to higher
income from interest on loans;
|
|
ii)
Growth of 6.4% in fee income, which stemmed primarily from higher income
from savings accounts, credit cards and contingencies (foreign trade and
guarantees); and
|
|
iii)
Higher earnings on FX transactions (+11.7%) due to an increase in the
volume of transactions in a scenario of 1.4% appreciation in the Nuevo
Sol.
|
Accumulated
results evolved very favorably, which is reflected in an increase of 23.2% with
regard to the income obtained in the first three quarters of 2009. This is
attributable to growth in all areas: 22.8% in net interest income, 29.5% of fee
income and 3.1% of net earnings for FX transactions.
II.1
Interest Earning Assets
Interest
earning assets reported a significant 14.8% increase QoQ due to growth in
available for sale securities (+43.9%), primarily BCR CDs, which are attractive
investment alternatives; a 5.8% QoQ increase in current loans and a 16.1%
increase in available funds attributable to higher legal reserves.
Interest
earning assets
|
|
Quarter
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
BCRP
and other banks
|
|
|
3,012,573 |
|
|
|
2,594,416 |
|
|
|
2,749,996 |
|
|
|
16.1 |
% |
|
|
9.5 |
% |
Interbank
funds
|
|
|
- |
|
|
|
- |
|
|
|
68,132 |
|
|
|
0.0 |
% |
|
|
-100.0 |
% |
Trading
securities
|
|
|
73,986 |
|
|
|
60,037 |
|
|
|
89,718 |
|
|
|
23.2 |
% |
|
|
-17.5 |
% |
Securities
available for sale
|
|
|
5,336,436 |
|
|
|
3,707,331 |
|
|
|
2,793,015 |
|
|
|
43.9 |
% |
|
|
91.1 |
% |
Current
loans
|
|
|
13,114,103 |
|
|
|
12,395,974 |
|
|
|
10,406,954 |
|
|
|
5.8 |
% |
|
|
26.0 |
% |
Total
interest earning assets
|
|
|
21,537,098 |
|
|
|
18,757,758 |
|
|
|
16,107,815 |
|
|
|
14.8 |
% |
|
|
33.7 |
% |
The
evolution of interest earning assets was closely tied to excellent performance
this quarter given that despite an increase in legal reserves, treasury
management wisely sought to capture relatively low-cost funds to take advantage
of good investment opportunities such as BCR CDs, which offer higher rates and
provide a lower effective tax rate. Economic expansion was also reflected in the
dynamism of loans, which increased 5.8% QoQ due to growth in the Wholesale and
Retail portfolios.
Loan
Portfolio
At the
end of 3Q10, current loans totaled US$ 13,114 million, which represents a 5.8%
increase QoQ and 26.0% YoY. This is a clear indicator that the Peruvian economy
is very dynamic right now. If we look at average daily balances, it is evident
that the favorable impact is due to the results of both Wholesale Banking and
Retail Banking, which reported significant QoQ increases of 5.0% and 5.6%,
respectively.
The
following graph shows the evolution of daily average balances and end-of-period
balances during the third quarter of 2010 where two aspects stand out: (i) the
upward trend of loan growth throughout the period, and (ii) the portfolio
reported QoQ growth of 5.5% in average daily balances, which is higher than the
3.5% posted in 3Q10. This upward trend is visible at a global level and within
each of the banking segments, which indicates that we are experiencing a period
of growth in the banking system and throughout all sectors of the
economy.
Further
analysis of average daily balances indicates that overall expansion was 5.5% QoQ
and 22.7% YoY. This expansion was due to total growth of both banking units and
within them of all segments. First, Wholesale Banking achieved 5.0%
growth QoQ, reaching more than US$ 7,000 million in average daily loan balances
mainly due to important Middle-Market Banking’s short and long term
transactions. Retail Banking increased 5.6% QoQ due to market dynamism and loans
in SME and Mortgage Loans segments performed particularly well, growing 8.2% and
5.1% QoQ, respectively. It is also important to point out Edyficar’s growth of
more than US$ 21 million, which represented 7.9% growth QoQ, topping last
quarter’s figure of 5.5%.
|
|
|
|
|
TOTAL
LOANS (1)
|
|
|
|
|
|
|
(US$
million)
|
|
|
|
|
3Q10
|
|
|
|
2Q10
|
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Wholesale
Banking
|
|
|
7,050.5 |
|
|
|
6,712.2 |
|
|
|
5,816.5 |
|
|
|
5.0 |
% |
|
|
21.2 |
% |
-
Corporate
|
|
|
4,542.3 |
|
|
|
4,417.4 |
|
|
|
3,939.8 |
|
|
|
2.8 |
% |
|
|
15.3 |
% |
-
Middle Market
|
|
|
2,508.2 |
|
|
|
2,294.8 |
|
|
|
1,876.6 |
|
|
|
9.3 |
% |
|
|
33.7 |
% |
Retail
Banking
|
|
|
4,796.9 |
|
|
|
4,541.0 |
|
|
|
4,058.7 |
|
|
|
5.6 |
% |
|
|
18.2 |
% |
-
SME + Business
|
|
|
1,624.6 |
|
|
|
1,501.9 |
|
|
|
1,322.9 |
|
|
|
8.2 |
% |
|
|
22.8 |
% |
-
Mortgages
|
|
|
1,746.9 |
|
|
|
1,661.7 |
|
|
|
1,470.0 |
|
|
|
5.1 |
% |
|
|
18.8 |
% |
-
Consumer
|
|
|
892.8 |
|
|
|
851.8 |
|
|
|
801.0 |
|
|
|
4.8 |
% |
|
|
11.5 |
% |
-
Credit Cards
|
|
|
532.5 |
|
|
|
525.6 |
|
|
|
464.7 |
|
|
|
1.3 |
% |
|
|
14.6 |
% |
Edyficar
|
|
|
299.7 |
|
|
|
277.8 |
|
|
|
- |
|
|
|
7.9 |
% |
|
|
- |
|
Others
(2)
|
|
|
739.4 |
|
|
|
688.6 |
|
|
|
626.6 |
|
|
|
7.4 |
% |
|
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
total loans
|
|
|
12,886.5 |
|
|
|
12,219.5 |
|
|
|
10,501.7 |
|
|
|
5.5 |
% |
|
|
22.7 |
% |
(1)
Average daily balance
(2)
Includes Work Out Unit, other banking and BCPBolivia.
If we
analyze loan evolution by currency type, we see that both portfolios reported
growth of 4.6% and 5.7% in the LC and FC portfolios,
respectively.
Average
Daily Balances
|
|
Domestic Currency Loans (1)
|
|
|
Foreign Currency Loans (1)
|
|
|
|
(Nuevos Soles million)
|
|
|
(US$ million)
|
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Wholesale
Banking
|
|
|
5,052.1 |
|
|
|
4,927.7 |
|
|
|
4,624.1 |
|
|
|
2.5 |
% |
|
|
9.3 |
% |
|
|
5,262.1 |
|
|
|
4,976.8 |
|
|
|
4,242.9 |
|
|
|
5.7 |
% |
|
|
24.0 |
% |
-
Corporate
|
|
|
3,475.6 |
|
|
|
3,346.9 |
|
|
|
3,516.5 |
|
|
|
3.8 |
% |
|
|
-1.2 |
% |
|
|
3,312.0 |
|
|
|
3,236.1 |
|
|
|
2,743.1 |
|
|
|
2.3 |
% |
|
|
20.7 |
% |
-
Middle Market
|
|
|
1,576.6 |
|
|
|
1,580.8 |
|
|
|
1,107.5 |
|
|
|
-0.3 |
% |
|
|
42.3 |
% |
|
|
1,950.1 |
|
|
|
1,740.6 |
|
|
|
1,499.7 |
|
|
|
12.0 |
% |
|
|
30.0 |
% |
Retail
Banking
|
|
|
8,258.6 |
|
|
|
7,821.0 |
|
|
|
6,686.1 |
|
|
|
5.6 |
% |
|
|
23.5 |
% |
|
|
1,873.5 |
|
|
|
1,786.3 |
|
|
|
1,782.5 |
|
|
|
4.9 |
% |
|
|
5.1 |
% |
-
SME + Business
|
|
|
2,876.7 |
|
|
|
2,678.8 |
|
|
|
2,269.4 |
|
|
|
7.4 |
% |
|
|
26.8 |
% |
|
|
606.3 |
|
|
|
558.3 |
|
|
|
550.6 |
|
|
|
8.6 |
% |
|
|
10.1 |
% |
-
Mortgages
|
|
|
2,240.8 |
|
|
|
2,111.3 |
|
|
|
1,656.9 |
|
|
|
6.1 |
% |
|
|
35.2 |
% |
|
|
953.7 |
|
|
|
918.1 |
|
|
|
905.9 |
|
|
|
3.9 |
% |
|
|
5.3 |
% |
-
Consumer
|
|
|
1,830.5 |
|
|
|
1,729.6 |
|
|
|
1,586.7 |
|
|
|
5.8 |
% |
|
|
15.4 |
% |
|
|
244.9 |
|
|
|
242.6 |
|
|
|
260.6 |
|
|
|
0.9 |
% |
|
|
-6.0 |
% |
-
Credit Cards
|
|
|
1,310.6 |
|
|
|
1,301.2 |
|
|
|
1,173.0 |
|
|
|
0.7 |
% |
|
|
11.7 |
% |
|
|
68.6 |
|
|
|
67.3 |
|
|
|
65.5 |
|
|
|
2.0 |
% |
|
|
4.9 |
% |
Edyficar
|
|
|
810.8 |
|
|
|
751.1 |
|
|
|
- |
|
|
|
8.0 |
% |
|
|
- |
|
|
|
12.7 |
|
|
|
13.3 |
|
|
|
- |
|
|
|
-4.0 |
% |
|
|
- |
|
Others (2)
|
|
|
182.6 |
|
|
|
174.9 |
|
|
|
108.7 |
|
|
|
4.4 |
% |
|
|
68.0 |
% |
|
|
674.7 |
|
|
|
627.0 |
|
|
|
589.5 |
|
|
|
7.6 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total loans
|
|
|
14,304.1 |
|
|
|
13,674.7 |
|
|
|
11,418.9 |
|
|
|
4.6 |
% |
|
|
25.3 |
% |
|
|
7,823.1 |
|
|
|
7,403.3 |
|
|
|
6,614.9 |
|
|
|
5.7 |
% |
|
|
18.3 |
% |
(1) Average daily balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
Includes Work Out Unit, other banking and BCP Bolivia.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
It is
evident that a significant portion of portfolio growth comes from expansion in
the FC portfolio that is mainly attributable to an increase in Wholesale Banking
loans, which in turn was driven by portfolio growth experimented in
Middle-Market Banking. This segment captured important short-term transactions
during the fishing season and to a lesser extent during the coffee campaign and
obtained long-term loans thanks to real estate investment projects, which
continue to grow.
Growth in
the FC portfolio is associated with a weak US dollar and the lower rates for the
foreign currency portfolio. In this scenario, the wholesale sector is better
prepared to manage FC exposure thanks to the natural cover provided by the
nature of its business (in terms of assets and income in FC) and the fact that
their technical expertise allows them to access to adequate market
coverage.
Growth in
the local currency portfolio is primarily attributable to Retail Banking’s
expansion, particularly in the SME-Business and Mortgage segments, which grew
7.4% and 6.1% QoQ, respectively, due to more extensive financial inclusion and
current economic development. As such, it is evident that retail clients are
aware of the fact that it is best to avoid the exchange risk that is implicit in
borrowing in a currency different from that of their income base. This growth
was strengthened by the Wholesale Portfolio, which experienced a reactivation of
LC loans and a corresponding increase of 2.5% QoQ thanks to mid-term
transactions. This evolution is noteworthy because of the growth it implies and
the fact that it offset last quarter’s negative result of -6.1%. In addition to
the favorable results of both banking businesses, Edyficar reported significant
growth of 8% QoQ in comparison to the QoQ 5.8% increase achieved in
2Q10.
Market
Share
At the
end of September, BCP consolidated maintained its market leadership with a 30.6%
share, which is 10 percentage points above the figure reported for its closest
competitor. It is important to emphasize that we currently hold 34.3% of the
market for mortgage loans.
As of the
end of August, the market shares of Corporate Banking and Middle-Market Banking
proved that BCP is solidly positioned, reaching 44% and 32.9% respectively.
These figures mirror those reported at the end of June 2010. Within Retail
Banking, per product shares, which include the mortgage, consumer and credit
card lines, showed little variation QoQ. During the last quarter, a number of
changes were made in the classification of PYME and Business products. As such,
we currently lack up-dated data to conduct a comparison with the previous
classification system.
Dollarization
The
foreign currency portfolio accounted for 60.7% of the total portfolio at the end
of the third quarter. This represents a slight decline that was due to growth in
the LC portfolio of Retail Banking and Wholesale Banking, the latter of which
disbursed significant mid-term loans in LC during the third
quarter.
II.2
Deposits and Mutual Funds
At
the end of 3Q10, deposits reported 10.1% growth QoQ that was driven primarily by
an increase in time deposits (+24.2%) and demand deposits (+29.8%) and to a
lesser degree by savings accounts (+6.8%). Mutual funds reported a slight
increase of 2.1% QoQ.
Deposits
and obligations
|
|
Quarter
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Non-interest
bearing deposits
|
|
|
3,918,653 |
|
|
|
4,027,803 |
|
|
|
3,415,360 |
|
|
|
-2.7 |
% |
|
|
14.7 |
% |
Demand
deposits
|
|
|
1,338,403 |
|
|
|
1,031,248 |
|
|
|
883,553 |
|
|
|
29.8 |
% |
|
|
51.5 |
% |
Saving
deposits
|
|
|
3,953,997 |
|
|
|
3,702,869 |
|
|
|
3,387,339 |
|
|
|
6.8 |
% |
|
|
16.7 |
% |
Time
deposits
|
|
|
5,267,355 |
|
|
|
4,242,721 |
|
|
|
5,179,047 |
|
|
|
24.2 |
% |
|
|
1.7 |
% |
Severance
indemnity deposits (CTS)
|
|
|
1,127,933 |
|
|
|
1,176,925 |
|
|
|
1,012,534 |
|
|
|
-4.2 |
% |
|
|
11.4 |
% |
Interest
payable
|
|
|
36,026 |
|
|
|
28,397 |
|
|
|
68,881 |
|
|
|
26.9 |
% |
|
|
-47.7 |
% |
Total
customer deposits
|
|
|
15,642,367 |
|
|
|
14,209,963 |
|
|
|
13,946,714 |
|
|
|
10.1 |
% |
|
|
12.2 |
% |
Mutual
funds in Perú
|
|
|
2,164,067 |
|
|
|
2,117,306 |
|
|
|
1,779,085 |
|
|
|
2.2 |
% |
|
|
21.6 |
% |
Mutual
funds in Bolivia
|
|
|
123,312 |
|
|
|
123,084 |
|
|
|
156,339 |
|
|
|
0.2 |
% |
|
|
-21.1 |
% |
Total
customer funds
|
|
|
17,929,746 |
|
|
|
16,450,353 |
|
|
|
15,882,138 |
|
|
|
9.0 |
% |
|
|
12.9 |
% |
The
increase reported in deposits was due mainly to growth in time deposits given
that Wholesale Banking’s clients maintained higher balances this quarter. The
increase in time deposits is in line with the CDs investment strategy. Demand
deposits and savings accounts reported growth of 29.8% QoQ and 6.8% QoQ due to
an increase in deposits in Wholesale Banking and Retail Banking
respectively.
This
evolution in funding sources is proof of BCP’s ability to capture the funds that
will allow it to back future economic growth in the country. The aforementioned
implied an increase in the cost of funding, which went from 1.82% in 2Q10 to
2.111% in 3Q10. This increase is mainly explained by two factors: i)
the higher reference rate in Nuevos Soles (from 1.75% in June to 3% in
September); and ii) the effect of reserve requirement measures that generated
the reduction of US dollar liquidity, which increased the cost of fund for such
currency.
BCP’s
mutual funds grew 2.1% QoQ due to favorable market value and the campaigns that
this segment conducted in 3Q10.
Market
Share in Deposits
At the
end of September, BCP led the deposits market with a 34.1% market share. This
figure was higher than that obtained in 2Q10 (33.1%) and 14 percentage points
above its closest competitor. If we analyze market share by deposit
and currency type, BCP maintains a solid lead and has performed particularly
well in terms of CTS deposits in FC and savings in LC where its market share
tops 40%.
Market share by type of deposit and currency
|
|
|
|
Demand
deposits
|
|
|
Saving
deposits
|
|
|
Time
deposits
|
|
|
Severance
indemnity
|
|
LC
|
|
|
38.1 |
% |
|
|
36.6 |
% |
|
|
29.0 |
% |
|
|
37.9 |
% |
FC
|
|
|
43.4 |
% |
|
|
41.0 |
% |
|
|
28.5 |
% |
|
|
55.6 |
% |
LC:
Local Currency
FC:
Foreign Currency
It is
important to mention that the increase in market participation in time deposits
in LC, which rose from 21.1% in 2Q10 to 29% in 3Q10 due to successful efforts to
capture excess liquidity, particularly from institutional
clients.
Dollarization
At the
end of 3Q10, de-dollarization was evident in deposits (55.7% in 2Q10 and 51.7%
in 3Q10) due to the significant 20.1% increase QoQ in LC deposits. This stemmed
primarily from higher time deposits by institutional clients in Wholesale
Banking. This evolution of deposits was attributable to increased
confidence in the local currency, which reported a 1.4% appreciation against the
US dollar during the third quarter of the year.
II.3 Net
Interest Income
NII
grew 6.0% QoQ due primarily to a 5.3% increase in interest income, which was
attributable to significant loan growth this quarter and helped offset higher
interest expenses (+25.1%). In this scenario, NIM performed well at
4.8%.
Net
interest income
|
|
Quarter
|
|
|
Change
%
|
|
|
Year
to date
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep
10
|
|
|
Sep
09
|
|
|
Sep 10 / Sep 09
|
|
Interest
income
|
|
|
345,937 |
|
|
|
311,548 |
|
|
|
292,292 |
|
|
|
11.0 |
% |
|
|
18.4 |
% |
|
|
963,407 |
|
|
|
909,494 |
|
|
|
5.9 |
% |
Interest
on loans
|
|
|
309,818 |
|
|
|
294,303 |
|
|
|
260,705 |
|
|
|
5.3 |
% |
|
|
18.8 |
% |
|
|
884,286 |
|
|
|
783,044 |
|
|
|
12.9 |
% |
Interest
and dividends on investments
|
|
|
33 |
|
|
|
42 |
|
|
|
384 |
|
|
|
-21.4 |
% |
|
|
-91 |
% |
|
|
3,532 |
|
|
|
3,088 |
|
|
|
14.4 |
% |
Interest
on deposits with banks
|
|
|
1,643 |
|
|
|
1,627 |
|
|
|
2,351 |
|
|
|
1.0 |
% |
|
|
-30.1 |
% |
|
|
5,058 |
|
|
|
16,163 |
|
|
|
-68.7 |
% |
Interest
on trading securities
|
|
|
21,035 |
|
|
|
19,511 |
|
|
|
27,730 |
|
|
|
7.8 |
% |
|
|
-24.1 |
% |
|
|
60,384 |
|
|
|
83,000 |
|
|
|
-27.2 |
% |
Other
interest income
|
|
|
13,408 |
|
|
|
(3,935 |
) |
|
|
1,122 |
|
|
|
440.7 |
% |
|
|
1095.0 |
% |
|
|
10,147 |
|
|
|
24,199 |
|
|
|
-58.1 |
% |
Interest
expense
|
|
|
103,663 |
|
|
|
82,896 |
|
|
|
95,030 |
|
|
|
25.1 |
% |
|
|
9.1 |
% |
|
|
273,306 |
|
|
|
316,611 |
|
|
|
-13.7 |
% |
Interest
on deposits
|
|
|
35,477 |
|
|
|
22,558 |
|
|
|
61,505 |
|
|
|
57.3 |
% |
|
|
-42.3 |
% |
|
|
79,590 |
|
|
|
220,103 |
|
|
|
-63.8 |
% |
Interest
on borrowed funds
|
|
|
41,879 |
|
|
|
29,272 |
|
|
|
4,746 |
|
|
|
43.1 |
% |
|
|
782.4 |
% |
|
|
99,941 |
|
|
|
21,244 |
|
|
|
370.4 |
% |
Interest
on bonds and subordinated note
|
|
|
23,783 |
|
|
|
23,063 |
|
|
|
16,501 |
|
|
|
3.1 |
% |
|
|
44.1 |
% |
|
|
72,474 |
|
|
|
47,013 |
|
|
|
54.2 |
% |
Other
interest expense
|
|
|
2,524 |
|
|
|
8,003 |
|
|
|
12,278 |
|
|
|
-68.5 |
% |
|
|
-79.4 |
% |
|
|
21,301 |
|
|
|
28,251 |
|
|
|
-24.6 |
% |
Net
interest income
|
|
|
242,274 |
|
|
|
228,652 |
|
|
|
197,262 |
|
|
|
6.0 |
% |
|
|
22.8 |
% |
|
|
690,101 |
|
|
|
592,883 |
|
|
|
16.4 |
% |
Average
interest earning assets
|
|
|
20,147,428 |
|
|
|
18,643,574 |
|
|
|
16,203,524 |
|
|
|
8.1 |
% |
|
|
24.3 |
% |
|
|
18,942,898 |
|
|
|
16,497,211 |
|
|
|
14.8 |
% |
Net
interest margin*
|
|
|
4.81 |
% |
|
|
4.91 |
% |
|
|
4.87 |
% |
|
|
|
|
|
|
|
|
|
|
4.86 |
% |
|
|
4.79 |
% |
|
|
|
|
*Annualized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NII’s
quarterly evolution shows 6.0% growth, which was attributable to:
i)The
5.3% increase in interest on loans due to significant loan growth (+5.7% in the
quarter’s gross closing balances and +5.5% in average daily balances) due to
higher growth in the Wholesale Banking and Retail Banking portfolios;
and
ii)
The increase in other interest income from earnings on derivatives.
The
aforementioned helped offset higher interest expenses associated with the
increase of interest on deposits and the interest on borrowed funds. The former
was attributable to 10.1% growth in volume of deposits and the higher interest
rates for US-dollar denominated deposits due to shortage of US dollar as a
result of aggressive BCR’s changes in reserve requirements. On the other hand,
the higher interests on borrowed funds are related to some accounting
reclassifications (mainly expenses for derivatives linked to borrowed funds that
were previously reported within other expenses or as negative other income) and
to a lesser extend higher average interest rate for due to banks, which is
related to the shortage aforementioned.
It is
also necessary to point out that the evolution of NII was highly satisfactory
given that this item does not include the tax benefit generated by investments
in BCR CDs (which are reported in the provisions account for income taxes).
Margins for Wholesale Banking continued to drop; nevertheless, growth in
volumes, particularly in Middle-market Banking, offset the aforementioned
effect. There is no doubt, significant growth in the Retail Banking and Edyficar
portfolios helped mitigate this effect.
The
aforementioned explains both the slight decline in NIM, which went from 4.9% to
4.8%, and the drop in NIM on loans, which was situated at 7.7% at the end of
3Q10 and was below the 8.0% posted last quarter.
Loan
/ Deposit Ratio
Another
aspect that needs to be considered in NIM evolution is our conservative asset
and liability matching policy in currency and tenor, which implies an
“opportunity cost.” In this sense, a significant increase in local currency (LC)
deposits was evident while the increase in foreign currency (FC) deposits was
minimal, which is reflected in the loan to deposit ratio that is currently
68.9% in LC and 100.5% in FC. In this scenario, FC funds are needed to finance
portfolio growth while maintaining adequate matching, which in turn generates a
need for issuances and results in higher payments of interest on loans (due to
banks) that imply higher funding costs than deposits. In this context, there is
an excess of LC deposits, which is invested in Central Bank´s instruments. This
creates an additional downward pressure on NIM given that the interest income
generated by this investment is low and the tax benefit that increases it´s
profitability and makes it a very attractive investment is not captured by the
NIM.
II.4 Past
Due Portfolio and Provisions for Loan Losses
The
past due ratio fell significantly, going from 1.71% in 2Q10 to 1.59% in 3Q10.
The coverage ratio for the past due loan portfolio rose from 179.5% to 193.3%
due to higher net provisions.
Provision
for loan losses
|
|
Quarter
|
|
|
Change
%
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Provisions
|
|
|
(59,018 |
) |
|
|
(43,592 |
) |
|
|
(44,080 |
) |
|
|
35.4 |
% |
|
|
33.9 |
% |
Loan
loss recoveries
|
|
|
6,404 |
|
|
|
12,408 |
|
|
|
5,163 |
|
|
|
-48.4 |
% |
|
|
24.0 |
% |
Net
provisions, for loan losses
|
|
|
(52,614 |
) |
|
|
(31,183 |
) |
|
|
(38,917 |
) |
|
|
68.7 |
% |
|
|
35.2 |
% |
Total
loans
|
|
|
13,326,601 |
|
|
|
12,611,066 |
|
|
|
10,572,063 |
|
|
|
5.7 |
% |
|
|
26.1 |
% |
Reserve
for loan losses (RLL)
|
|
|
410,814 |
|
|
|
386,148 |
|
|
|
316,718 |
|
|
|
6.4 |
% |
|
|
29.7 |
% |
Charge-Off
amount
|
|
|
35,801 |
|
|
|
35,296 |
|
|
|
20,709 |
|
|
|
1.4 |
% |
|
|
72.9 |
% |
Past
due loans (PDL)
|
|
|
212,498 |
|
|
|
215,092 |
|
|
|
165,109 |
|
|
|
-1.2 |
% |
|
|
28.7 |
% |
PDL/Total
loans
|
|
|
1.59 |
% |
|
|
1.71 |
% |
|
|
1.56 |
% |
|
|
|
|
|
|
|
|
Coverage
|
|
|
193.3 |
% |
|
|
179.5 |
% |
|
|
191.8 |
% |
|
|
|
|
|
|
|
|
The
increase in gross provisions in 3Q10 (+35.4% QoQ) was partially attributable to
growth in total loans (+5.7% QoQ) but mainly due to regulatory changes and the
internal policy relative to:
|
(i)
|
new
loan segmentation, which implied, in the case of some products, higher
loan provisions (such as Business
segment);
|
|
(ii)
|
the
re-activation of pro-cyclical provisions required by the Peruvian
supervisor as of 3Q10 in a context of economic growth; it is important to
note, however, that the impact of this measure was much lower because the
provisions made before the international crisis were not used;
and
|
|
(iii)
|
a
conscious decision to increase provisions to expand the coverage
level.
|
Recoveries
for charge offs fell this quarter (-48.4% QoQ), which heightened the increase in
net provisions (68.7% QoQ). These recoveries took place primarily in BCP Peru
(associated mainly with Work-out Unit).
With
regards to the past due ratio- which measures loan portfolio quality- it
improved substantially QoQ, going from 1.71% at the end of 2Q10 to 1.59% at the
end of 3Q10. Moreover, when we analyze PDL ratio for loans with more than 90
days overdue, we note a reduction from 1.19% at the end of 2Q10 to 0.97% at the
end of 3Q10. The aforementioned evolutions were the result of 5.7%
growth QoQ in gross loans as well as a drop of 1.2% QoQ in absolute terms in the
past due portfolio. The curve in the following chart shows the
evolution of PDLs and clearly reflects the effect of the economic slowdown in
2009 which had a delayed impact on PDLs and its recovery.
PDL
|
|
|
3Q10 |
|
|
|
2Q10 |
|
PDL
(%)
|
|
|
1.59 |
% |
|
|
1.71 |
% |
PDL
over 90 days (%)
|
|
|
0.97 |
% |
|
|
1.19 |
% |
II.5 Non
Financial Income
The
6.4% growth observed in fees for banking services and the 11.7% increase in
earnings on FX transactions significantly offset lower net earnings on sales of
securities. Thus, excluding extraordinary gains on sales of securities, non
financial income would increase 9.4% QoQ.
Non
financial income
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Fee
income
|
|
|
120,839 |
|
|
|
113,577 |
|
|
|
93,348 |
|
|
|
6.4 |
% |
|
|
29.5 |
% |
|
|
341,639 |
|
|
|
258,521 |
|
|
|
32.2 |
% |
Net
gain on foreign exchange transactions
|
|
|
26,354 |
|
|
|
23,595 |
|
|
|
25,559 |
|
|
|
11.7 |
% |
|
|
3.1 |
% |
|
|
75,452 |
|
|
|
65,587 |
|
|
|
15.0 |
% |
Net
gain on sales of securities
|
|
|
18,987 |
|
|
|
29,727 |
|
|
|
9,890 |
|
|
|
-36.1 |
% |
|
|
92.0 |
% |
|
|
48,875 |
|
|
|
92,164 |
|
|
|
-47.0 |
% |
Other
income
|
|
|
1,168 |
|
|
|
2,642 |
|
|
|
892 |
|
|
|
-55.8 |
% |
|
|
30.9 |
% |
|
|
8,764 |
|
|
|
12,251 |
|
|
|
-28.5 |
% |
Total
non financial income
|
|
|
167,348 |
|
|
|
169,541 |
|
|
|
129,689 |
|
|
|
-1.3 |
% |
|
|
29.0 |
% |
|
|
474,730 |
|
|
|
428,523 |
|
|
|
10.8 |
% |
Fees for
banking services grew 6.4% QoQ due to increases across segments. It is important
to emphasize that the evolution of fees for Other Accounts (+9.1% QoQ) was
mainly attributable to higher fees relative to Savings Accounts and Debit Cards.
The Others category (+4.4% QoQ) also reported considerable growth, primarily in
terms of higher fees for Foreign Trade and those derived from Contingencies
(guarantees).
The
aforementioned, coupled with higher net earnings on FX operations, which rose
11.7% QoQ due to an increase in the volume of operations in a context in which
the Nuevo Sol appreciated (+1.4%), mitigated the effect caused by the decline in
net earnings on sales of securities.
It is
important to highlight that non financial income would increase 9.4% QoQ when
excluding extraordinary gains on sales of securities reported in 3Q and
2Q obtained from the Peruvian Government’s repurchase of bonds
denominated in Euros.
Banking
Fee Income
|
|
Quarter
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
3Q10 / 2Q10
|
|
|
3Q10 / 3Q09
|
|
Miscellaneous
Accounts*
|
|
|
30,863 |
|
|
|
28,276 |
|
|
|
23,792 |
|
|
|
9.1 |
% |
|
|
29.7 |
% |
Contingents
|
|
|
7,113 |
|
|
|
6,214 |
|
|
|
5,238 |
|
|
|
14.5 |
% |
|
|
35.8 |
% |
Payments
and Collections
|
|
|
15,376 |
|
|
|
14,651 |
|
|
|
12,881 |
|
|
|
4.9 |
% |
|
|
19.4 |
% |
Drafts
and Transfers
|
|
|
7,321 |
|
|
|
6,837 |
|
|
|
6,265 |
|
|
|
7.1 |
% |
|
|
16.9 |
% |
Credit
Cards
|
|
|
15,284 |
|
|
|
14,628 |
|
|
|
12,729 |
|
|
|
4.5 |
% |
|
|
20.1 |
% |
Others
|
|
|
44,882 |
|
|
|
42,970 |
|
|
|
32,444 |
|
|
|
4.4 |
% |
|
|
38.3 |
% |
Total
Fee Income
|
|
|
120,839 |
|
|
|
113,577 |
|
|
|
93,348 |
|
|
|
6.4 |
% |
|
|
29.5 |
% |
*
Saving Accounts, Current Accounts and Debit Card.
The
positive evolution of fees is also related to the behavior of banking
transactions, which grew 5.4% QoQ due, in large part, to on-line transactions.
This growth is mainly attributable to an increase in Internet transactions
(+8.5% QoQ), which represents 35% of the total growth of transactions this
quarter. Other items that contributed to growth in transactions were
(i) an increase in the use of ATMs (+7.4% QoQ) and (ii) higher transactions in
Telecrédito (+8.9% QoQ). The aforementioned is a clear sign that
customers are increasing their use of channels that are more cost efficient for
BCP.
N° de Transactions per
channel
|
|
Quarter
|
|
|
Change %
|
|
|
|
Average 3Q10
|
|
|
Average 2Q10
|
|
|
Average 3Q09
|
|
|
|
3Q10 / 2Q10
|
|
|
|
3Q10 / 3Q09
|
|
Teller
|
|
|
10,105,034 |
|
|
|
10,115,285 |
|
|
|
10,596,719 |
|
|
|
-0.1 |
% |
|
|
-4.6 |
% |
ATMs
Via BCP
|
|
|
8,957,045 |
|
|
|
8,339,318 |
|
|
|
7,239,234 |
|
|
|
7.4 |
% |
|
|
23.7 |
% |
Balance
Inquiries
|
|
|
2,931,377 |
|
|
|
2,888,532 |
|
|
|
2,554,782 |
|
|
|
1.5 |
% |
|
|
14.7 |
% |
Telephone
Banking
|
|
|
1,643,660 |
|
|
|
1,548,182 |
|
|
|
1,470,293 |
|
|
|
6.2 |
% |
|
|
11.8 |
% |
Internet
Banking Via BCP
|
|
|
11,458,877 |
|
|
|
10,563,002 |
|
|
|
9,770,583 |
|
|
|
8.5 |
% |
|
|
17.3 |
% |
Agente
BCP
|
|
|
5,383,892 |
|
|
|
5,118,650 |
|
|
|
4,006,165 |
|
|
|
5.2 |
% |
|
|
34.4 |
% |
Telecrédito
|
|
|
4,725,407 |
|
|
|
4,339,153 |
|
|
|
3,973,367 |
|
|
|
8.9 |
% |
|
|
18.9 |
% |
Mobile
banking
|
|
|
303,147 |
|
|
|
254,054 |
|
|
|
118,641 |
|
|
|
19.3 |
% |
|
|
155.5 |
% |
Direct
Debit
|
|
|
417,399 |
|
|
|
418,500 |
|
|
|
408,430 |
|
|
|
-0.3 |
% |
|
|
2.2 |
% |
Points
of Sale P.O.S.
|
|
|
4,273,894 |
|
|
|
4,052,376 |
|
|
|
3,474,223 |
|
|
|
5.5 |
% |
|
|
23.0 |
% |
Other
ATMs network
|
|
|
333,604 |
|
|
|
319,065 |
|
|
|
270,654 |
|
|
|
4.6 |
% |
|
|
23.3 |
% |
Total
transactions
|
|
|
50,533,335 |
|
|
|
47,956,117 |
|
|
|
43,883,091 |
|
|
|
5.4 |
% |
|
|
15.2 |
% |
BCP’s
network of distribution channels (only in Peru) continues to grow, specifically
in terms of the number of BCP Agents, which continues to be the channel with the
highest profile and growth (+8.7% QoQ). In this way, the total number of points
of contact grew in 3Q10 (+7.0% QoQ), which is double the growth reported in
2Q10. A YoY analysis shows that the total number of points of contact
has increased by more than one thousand.
|
|
Balance as of
|
|
|
Change %
|
|
|
|
|
3Q10
|
|
|
|
2Q10
|
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Branches
|
|
|
324 |
|
|
|
325 |
|
|
|
330 |
|
|
|
-0.3 |
% |
|
|
-1.8 |
% |
ATMs
|
|
|
1,109 |
|
|
|
1,062 |
|
|
|
951 |
|
|
|
4.4 |
% |
|
|
16.6 |
% |
Agentes
BCP
|
|
|
3,354 |
|
|
|
3,086 |
|
|
|
2,435 |
|
|
|
8.7 |
% |
|
|
37.7 |
% |
Total
|
|
|
4,787 |
|
|
|
4,473 |
|
|
|
3,716 |
|
|
|
7.0 |
% |
|
|
28.8 |
% |
II.6
Operating Costs and Efficiency
For
the third consecutive quarter, BCP achieved an improvement in operating
efficiency, which was reflected in a drop in the efficiency ratio, which went
from 48.0% in 2Q10 to 46.3% in 3Q10. This positive evolution was due to an
increase in income as well as an adequate control of expenses, which remained at
levels similar to those seen in 2Q10.
Operating
expenses
|
|
Quarter
|
|
|
Change
%
|
|
|
Year
to date
|
|
|
Change
%
|
|
US$
000
|
|
|
3Q10
|
|
|
|
2Q10
|
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep
10
|
|
|
Sep
09
|
|
|
Sep 10 / Sep 09
|
|
Salaries
and employees benefits
|
|
|
95,404 |
|
|
|
90,961 |
|
|
|
80,318 |
|
|
|
4.9 |
% |
|
|
18.8 |
% |
|
|
284,810 |
|
|
|
238,983 |
|
|
|
19.2 |
% |
Administrative,
general and tax expenses
|
|
|
67,549 |
|
|
|
67,866 |
|
|
|
59,269 |
|
|
|
-0.5 |
% |
|
|
14.0 |
% |
|
|
201,200 |
|
|
|
186,741 |
|
|
|
7.7 |
% |
Depreciation
and amortizacion
|
|
|
17,392 |
|
|
|
16,837 |
|
|
|
14,712 |
|
|
|
3.3 |
% |
|
|
18.2 |
% |
|
|
50,652 |
|
|
|
42,556 |
|
|
|
19.0 |
% |
Other
expenses
|
|
|
4,406 |
|
|
|
7,516 |
|
|
|
6,794 |
|
|
|
-41.4 |
% |
|
|
-35.1 |
% |
|
|
16,602 |
|
|
|
27,493 |
|
|
|
-39.6 |
% |
Total
operating expenses
|
|
|
184,751 |
|
|
|
183,180 |
|
|
|
161,093 |
|
|
|
0.9 |
% |
|
|
14.7 |
% |
|
|
553,264 |
|
|
|
495,773 |
|
|
|
11.6 |
% |
Efficiency
ratio
|
|
|
46.3 |
% |
|
|
48.0 |
% |
|
|
48.8 |
% |
|
|
|
|
|
|
|
|
|
|
48.5 |
% |
|
|
51.1 |
% |
|
|
|
|
Operating
expenses were similar QoQ, reporting an increase of only 0.9%. This slight
variation was due primarily to an increase in salaries and employee benefits
(+4.9% QoQ)-in line with business expansion- which was offset by a reduction in
other expenses and administrative expenses.
The table
below provides details on the administrative expensive and quarterly
variations:
Administrative
Expenses
|
|
Quarter
|
|
|
Change
%
|
|
|
Year
to date
|
|
|
Change
%
|
|
US$
000
|
|
3Q10
|
|
|
%
|
|
|
2Q10
|
|
|
%
|
|
|
3Q09
|
|
|
%
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep
10
|
|
|
Sep
09
|
|
|
Sep
10 / Sep 09
|
|
Marketing
|
|
|
8,815 |
|
|
|
13.0 |
% |
|
|
8,133 |
|
|
|
12.0 |
% |
|
|
7,197 |
|
|
|
11.5 |
% |
|
|
8.4 |
% |
|
|
22.5 |
% |
|
|
22,256 |
|
|
|
19,321 |
|
|
|
15.2 |
% |
Systems
|
|
|
9,270 |
|
|
|
13.7 |
% |
|
|
7,994 |
|
|
|
11.8 |
% |
|
|
7,463 |
|
|
|
11.9 |
% |
|
|
16.0 |
% |
|
|
24.2 |
% |
|
|
26,615 |
|
|
|
26,212 |
|
|
|
1.5 |
% |
Transport
|
|
|
6,057 |
|
|
|
9.0 |
% |
|
|
5,530 |
|
|
|
8.1 |
% |
|
|
5,448 |
|
|
|
8.7 |
% |
|
|
9.5 |
% |
|
|
11.2 |
% |
|
|
17,532 |
|
|
|
15,653 |
|
|
|
12.0 |
% |
Maintenance
|
|
|
2,971 |
|
|
|
4.4 |
% |
|
|
2,530 |
|
|
|
3.7 |
% |
|
|
3,052 |
|
|
|
4.9 |
% |
|
|
17.4 |
% |
|
|
-2.7 |
% |
|
|
8,175 |
|
|
|
8,495 |
|
|
|
-3.8 |
% |
Communications
|
|
|
3,857 |
|
|
|
5.7 |
% |
|
|
4,734 |
|
|
|
7.0 |
% |
|
|
3,312 |
|
|
|
5.3 |
% |
|
|
-18.5 |
% |
|
|
16.5 |
% |
|
|
12,203 |
|
|
|
9,447 |
|
|
|
29.2 |
% |
Consulting
|
|
|
3,076 |
|
|
|
4.6 |
% |
|
|
4,460 |
|
|
|
6.6 |
% |
|
|
6,500 |
|
|
|
10.4 |
% |
|
|
-31.0 |
% |
|
|
-52.7 |
% |
|
|
9,801 |
|
|
|
13,686 |
|
|
|
-28.4 |
% |
Others
|
|
|
17,621 |
|
|
|
26.1 |
% |
|
|
19,246 |
|
|
|
28.4 |
% |
|
|
18,209 |
|
|
|
29.1 |
% |
|
|
-8.4 |
% |
|
|
-3.2 |
% |
|
|
56,836 |
|
|
|
56,414 |
|
|
|
0.7 |
% |
Taxes
and contributions
|
|
|
6,635 |
|
|
|
9.8 |
% |
|
|
7,009 |
|
|
|
10.3 |
% |
|
|
5,937 |
|
|
|
9.5 |
% |
|
|
-5.3 |
% |
|
|
11.8 |
% |
|
|
20,337 |
|
|
|
18,064 |
|
|
|
12.6 |
% |
Other
subsidiaries and eliminations, net
|
|
|
9,247 |
|
|
|
13.7 |
% |
|
|
8,231 |
|
|
|
12.1 |
% |
|
|
5,451 |
|
|
|
8.7 |
% |
|
|
12.3 |
% |
|
|
69.6 |
% |
|
|
27,445 |
|
|
|
19,447 |
|
|
|
41.1 |
% |
Total
Administrative Expenses
|
|
|
67,549 |
|
|
|
100.0 |
% |
|
|
67,867 |
|
|
|
100.0 |
% |
|
|
62,569 |
|
|
|
100.0 |
% |
|
|
-0.5 |
% |
|
|
8.0 |
% |
|
|
201,200 |
|
|
|
186,740 |
|
|
|
7.7 |
% |
II.7
Shareholders’ Equity and Regulatory Capital
The
BIS ratio rose to 13.89% at the end of 3Q10 due to a decline in total RWA (-1.1%
QoQ) and an increase in regulatory capital (+0.8% QoQ). Additionally, ROAE
remained at an excellent level of 31.3%, which reflects the high profitability
of the banking business.
Shareholders'
equity
|
|
Quarter
|
|
|
Change %
|
|
US$
000
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Capital
stock
|
|
|
783,213 |
|
|
|
783,213 |
|
|
|
667,250 |
|
|
|
0.0 |
% |
|
|
17.4 |
% |
Reserves
|
|
|
388,309 |
|
|
|
388,309 |
|
|
|
388,275 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Unrealized
gains and losses
|
|
|
131,056 |
|
|
|
84,959 |
|
|
|
94,797 |
|
|
|
54.3 |
% |
|
|
38.2 |
% |
Retained
earnings
|
|
|
187,143 |
|
|
|
187,143 |
|
|
|
115,922 |
|
|
|
0.0 |
% |
|
|
61.4 |
% |
Income
for the year
|
|
|
374,750 |
|
|
|
236,130 |
|
|
|
289,980 |
|
|
|
58.7 |
% |
|
|
29.2 |
% |
Net
shareholders' equity
|
|
|
1,864,471 |
|
|
|
1,679,754 |
|
|
|
1,556,224 |
|
|
|
11.0 |
% |
|
|
19.8 |
% |
Return
on average equity (ROAE)
|
|
|
31.3 |
% |
|
|
33.0 |
% |
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
The QoQ
analysis reveals that net shareholders’ equity grew 11.0% due to higher retained
earnings this quarter (+58.7%). Although net income increased this quarter with
regard to 2Q10, higher growth in shareholders’ equity explains the fact that
ROAE has dropped to 31.3%, which is still a very favorable level and is ample
evidence that BCP’s profitability remains high.
The BIS
ratio went from 13.62% at the end of 2Q10 to 13.89% at the end of 3Q10. This was
primarily attributable to a 1.1% QoQ decline in total RWA (risk-weighted
assets), which offset the marginal increase of 0.8% QoQ in regulatory
capital.
Total RWA
contracted 1.1% QoQ due to the 20.9% QoQ decline in assets weighted for market
risk given that BCP maintains a lower position in dollars. A contraction in
assets weighted for credit risk was also evident despite a significant increase
in gross loans of 5.7% QoQ. This is attributable to the fact that as
of July, the standard method (Basel II) was used to calculate credit RWA. This
methodology is more sensitive to the portfolio’s risk quality and in the case of
BCP (good risk profile), the change has meant that a significant percentage of
the portfolio is subject to lower weighted risk rates such as AA+ Corporate
loans, off-balance sheet and loans with liquid guarantees.
Although
the credit and operational RWA declined, the associated capital requirements
increased due to the higher capital requirements set by the Peruvian regulatory
entity (9.8% as of July; previously 9.5%).
Finally,
BCP, based on its preliminary analysis of the impact of implementing Basel III
for 2018, believes that it has complied with the new capital requirements. This
is still subject to the regulatory entity’s interpretation (Superintendence of
Banking, Insurance and Private Pension Fund Administrators) of the treatment
given to hybrid bonds and the magnitude and composition of additional
requirements for pro-cyclical capital and systemic risk.
Regulatory Capital and Capital Adequacy Ratios
|
|
Balance as of
|
|
|
Change %
|
|
US$ 000
|
|
Sep 10
|
|
|
Jun 10
|
|
|
Sep 09
|
|
|
Sep 10 / Jun 10
|
|
|
Sep 10 / Sep 09
|
|
Capital
Stock
|
|
|
917,739 |
|
|
|
905,074 |
|
|
|
772,638 |
|
|
|
1.4 |
% |
|
|
18.8 |
% |
Legal
and Other capital reserves
|
|
|
476,912 |
|
|
|
470,331 |
|
|
|
460,838 |
|
|
|
1.4 |
% |
|
|
3.5 |
% |
Accumulated
earnings with capitalization agreement
|
|
|
- |
|
|
|
- |
|
|
|
114,234 |
|
|
|
- |
|
|
|
- |
|
Loan
loss reserves (1)
|
|
|
167,661 |
|
|
|
168,228 |
|
|
|
133,804 |
|
|
|
-0.3 |
% |
|
|
25.3 |
% |
Perpetual
subordinated debt
|
|
|
250,000 |
|
|
|
250,000 |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
Subordinated
Debt
|
|
|
448,728 |
|
|
|
446,011 |
|
|
|
432,418 |
|
|
|
0.6 |
% |
|
|
3.8 |
% |
Unrealized
profit (loss)
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Investment
in subsidiaries and others, net of unrealized profit
|
|
|
(232,388 |
) |
|
|
(227,269 |
) |
|
|
(174,911 |
) |
|
|
2.3 |
% |
|
|
32.9 |
% |
Goodwill
|
|
|
(43,805 |
) |
|
|
(43,200 |
) |
|
|
- |
|
|
|
1.4 |
% |
|
|
- |
|
Total
Regulatory Capital
|
|
|
1,984,848 |
|
|
|
1,969,175 |
|
|
|
1,739,021 |
|
|
|
0.8 |
% |
|
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier
1 (2)
|
|
|
1,560,999 |
|
|
|
1,514,939 |
|
|
|
1,289,384 |
|
|
|
3.0 |
% |
|
|
21.1 |
% |
Tier
2 (3) + Tier 3 (4)
|
|
|
423,850 |
|
|
|
454,236 |
|
|
|
449,636 |
|
|
|
-6.7 |
% |
|
|
-5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk-weighted assets
|
|
|
14,290,912 |
|
|
|
14,454,607 |
|
|
|
12,024,011 |
|
|
|
-1.1 |
% |
|
|
18.9 |
% |
Market
risk-weighted assets (5)
|
|
|
410,725 |
|
|
|
519,321 |
|
|
|
897,171 |
|
|
|
-20.9 |
% |
|
|
-54.2 |
% |
Credit
risk-weighted assets
|
|
|
13,396,056 |
|
|
|
13,458,244 |
|
|
|
10,684,874 |
|
|
|
-0.5 |
% |
|
|
25.4 |
% |
Operational
risk-weighted assets (6)
|
|
|
484,132 |
|
|
|
477,043 |
|
|
|
441,966 |
|
|
|
1.5 |
% |
|
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
risk capital requirement (5)
|
|
|
40,251 |
|
|
|
49,335 |
|
|
|
85,231 |
|
|
|
-18.4 |
% |
|
|
-52.8 |
% |
Credit
risk capital requirement
|
|
|
1,312,813 |
|
|
|
1,278,533 |
|
|
|
1,015,063 |
|
|
|
2.7 |
% |
|
|
29.3 |
% |
Operational
risk capital requirement (6)
|
|
|
47,445 |
|
|
|
45,319 |
|
|
|
41,987 |
|
|
|
4.7 |
% |
|
|
13.0 |
% |
Capital
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIS
ratio (7)
|
|
|
13.9 |
% |
|
|
13.6 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
Risk-weighted
assets (8) / Regulatory Capital
|
|
|
7.20 |
|
|
|
7.34 |
|
|
|
6.91 |
|
|
|
|
|
|
|
|
|
(1)
Until June 2009, loan loss reserves up to 1% of gross
loans. Since July 2009, up to 1.25% of total
risk-weighted assets.
(2)
Tier 1 = Capital + Reserves + Accumulated earnings with capitalization agreement
+ Unrealized profit in subsidiaries
+
Perpetual subordinated debt (maximum amount that can be included is 17.65% of
Capital + Reserves
+
Accumulated earnings with capitalization agreement + Unrealized gains -
Goodwill).
(3)
Tier 2 = Subordinated debt + Loan loss reserves - (0.5 x Investment in
subsidiaries)
(4)
Tier 3 = Subordinated debt covering market risk only. Tier 3 exists since
1Q10.
(5)
Since July 2009, it includes capital requirement to cover price and rate
risk.
(6)
Effective as of July 2009.
(7)
Regulatory Capital / Risk-weighted assets (legal minimum = 9.8% since July
2010)
(8)
Until June 2009, Risk-weighted assets = Credit risk-weighted assets +
Capital requirement to cover market risk * 11. Since July
2009,
Risk-weighted
assets = Credit risk-weighted assets * 0.96 + Capital requirement to cover
market risk * 10.5 + Capital requirement to cover operational risk *
10.5
III.
Banco de Crédito de Bolivia
Results
In 3Q10,
BCP Bolivia reported net income of US$ 3.4 million, whereby this will probably
set the new level of income that can be achieved within the existent economic
framework. The results of this quarter represented a 3.7% increase QoQ and a
51.4% contraction YoY. The QoQ increase was due primarily to: (i) higher
non-financial income (13.6%), and (ii) lower net provisions for loans (-26.7%).
All above offset the reduction of 4.9% QoQ in net interest margin.
Financial
income rose due to an increase in the volume of FX transactions, which
compensated the effect of the exchange rate that remains fixed and the reduction
of the spread, growth in volume has generated an increase in financial income.
Net loan provisions fell after the portfolio was restructured to comply with
ASFI changes in provision requirements. The main modifications to
these norms include a simplification in the portfolio’s segmentation from eight
classes to six. This scenario, coupled with the fact that the bank’s policies-
which were much more conservative than the legislation previously in effect-
have been aligned with ASFI legislation, means that the portfolio is much
healthier. This had led BCP to reduce the provisions stipulated under previous
policies. The past due loan ratio has also fallen, which has further reduced the
need for loan provisions.
The drop
in net income YoY (-51.4%) is primarily attributable to lower net
interest income, which was generated by (i) excess liquidity, (ii) a
decline in the borrowing rate and (iii) an increase in deposits rates (regulated
by ASFI). The elimination of some fees (regulated by ASFI) and higher net loan
provisions (12.1% YoY) have been insufficient to offset the effect of
smaller margin (-33.9% YoY) on the net income.
The
prudent strategy to main loan risk allowed BCP to achieve a past due loan ratio
of 1.4% in 3Q10 (1.5% in 2Q10 and 2.3% in 3Q09) coverage of 304.5% (284.6% in
2Q10 and 241.3% in 3Q09). These indicators show that BCP Bolivia was one of the
top performers in the Bolivian banking system, which reported ratios of 2.5% and
197.2%, respectively, at the end of 3Q10. BCP Bolivia’s ROAE was 18.3%, lower
than the 20.0% reported in June 2010 and below the 30.3% registered in September
2009.
Assets
and Liabilities
Total
loans at the end of September 2010 were US$ 570.7 million, which indicates an
8.6% increase over the US$ 525.6 million reported in June 2010 and 21.2% above
the level reported in September 2009. Loan growth in the third quarter was
attributable to the bank’s decision to adopt a more aggressive loan strategy due
to good economic indicators and the fact that its past due loan ratio was one of
the lowest in the banking system.
This
quarter, Retail Banking’s performance, which reported 9.0% growth QoQ and 20.1%
YoY, was particularly noteworthy. This increase has an important impact on the
bank’s results given it represents 53.3% of the total portfolio (Wholesale
Banking represents 43.6% and Special Accounts, 3.1%)and generates higher
margins. The Retail Banking product that showed the highest QoQ
growth was the commercial segment (19.4%), which represents 8.6% of this
portfolio. The Home Mortgage segment represents 44.9% of the Retail Banking
portfolio and grew 4.1% QoQ and 13.7% YoY.
In terms
of liabilities, BCP Bolivia’s deposits increased 6.5% QoQ but fell 8.3% YoY. The
QoQ increase is primarily attributable to growth of 21.1% and 4.8% in time
deposits and savings accounts, respectively, while the YoY contraction was due
to a 24.4% decline in savings accounts with regard to September 2009. This
contraction can be traced to a drop savings accounts held by institutional
clients, which generated excess liquidity.
Shareholders’
equity increased 3.4% QoQ but fell 8.4% QoQ due to lower quarterly
earnings.
BCP
Bolivia maintained an 11.7% share of the market of current loans (not including
rescheduled loans) and holds 11.8% of total deposits. This situates the bank in
third place in terms of loans and fourth in deposits in the Bolivian banking
system. BCP Bolivia continues to position itself as a bank on the move that
provides simple and efficient technological solutions by offering innovative
transactional products and increasingly sophisticated on-line
services.
Banco
de Crédito de Bolivia
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$
million
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Net
financial income
|
|
|
7.7 |
|
|
|
8.1 |
|
|
|
11.6 |
|
|
|
-4.9 |
% |
|
|
-33.9 |
% |
|
|
24.6 |
|
|
|
38.7 |
|
|
|
-36.4 |
% |
Net
provisions for loan losses
|
|
|
(1.3 |
) |
|
|
(1.8 |
) |
|
|
(1.2 |
) |
|
|
-26.7 |
% |
|
|
12.1 |
% |
|
|
(3.4 |
) |
|
|
(5.2 |
) |
|
|
-34.9 |
% |
Non
financial income
|
|
|
9.4 |
|
|
|
8.3 |
|
|
|
9.0 |
|
|
|
13.6 |
% |
|
|
5.3 |
% |
|
|
26.8 |
|
|
|
29.4 |
|
|
|
-8.7 |
% |
Operating
expenses
|
|
|
(11.6 |
) |
|
|
(11.0 |
) |
|
|
(11.6 |
) |
|
|
5.3 |
% |
|
|
-0.4 |
% |
|
|
(33.6 |
) |
|
|
(37.5 |
) |
|
|
-10.5 |
% |
Translation
result
|
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
235.9 |
% |
|
|
14.1 |
% |
|
|
0.0 |
|
|
|
(0.3 |
) |
|
|
102.9 |
% |
Income
tax
|
|
|
(0.8 |
) |
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
312.0 |
% |
|
|
12.3 |
% |
|
|
(2.1 |
) |
|
|
(2.5 |
) |
|
|
-15.6 |
% |
Net
Income
|
|
|
3.4 |
|
|
|
3.3 |
|
|
|
7.1 |
|
|
|
3.7 |
% |
|
|
-51.4 |
% |
|
|
12.4 |
|
|
|
22.6 |
|
|
|
-45.2 |
% |
Total
loans
|
|
|
570.7 |
|
|
|
525.6 |
|
|
|
470.8 |
|
|
|
8.6 |
% |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Past
due loans
|
|
|
7.9 |
|
|
|
8.1 |
|
|
|
10.7 |
|
|
|
-2.6 |
% |
|
|
-26.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
provisions for possible loan losses
|
|
|
(23.1 |
) |
|
|
(22.3 |
) |
|
|
(24.0 |
) |
|
|
3.8 |
% |
|
|
-3.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
investments
|
|
|
224.5 |
|
|
|
267.0 |
|
|
|
328.1 |
|
|
|
-15.9 |
% |
|
|
-31.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
1,014.2 |
|
|
|
965.8 |
|
|
|
1,120.1 |
|
|
|
5.0 |
% |
|
|
-9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
888.2 |
|
|
|
833.8 |
|
|
|
968.6 |
|
|
|
6.5 |
% |
|
|
-8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholders' equity
|
|
|
92.6 |
|
|
|
89.5 |
|
|
|
101.1 |
|
|
|
3.4 |
% |
|
|
-8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PDL
/ total loans
|
|
|
1.39 |
% |
|
|
1.54 |
% |
|
|
2.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage
ratio of PDLs
|
|
|
304.5 |
% |
|
|
284.6 |
% |
|
|
241.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROAE*
|
|
|
18.3 |
% |
|
|
20.0 |
% |
|
|
30.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
65 |
|
|
|
65 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agentes
|
|
|
35 |
|
|
|
40 |
|
|
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATMs
|
|
|
172 |
|
|
|
171 |
|
|
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
|
|
|
1,396 |
|
|
|
1,368 |
|
|
|
1,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
ROAE: (Acumulated net income / average monthly equity (from dec. to
date))/(number of months)*12
IV.
Financiera Edyficar
Edyficar
|
|
Quarter
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
|
3Q10
|
|
|
|
2Q10
|
|
|
Sep 10
|
|
|
QoQ
|
|
Net
financial income
|
|
|
21,571 |
|
|
|
19,499 |
|
|
|
58,371 |
|
|
|
10.6 |
% |
Total
provisions for loan loasses
|
|
|
(1,887 |
) |
|
|
(1,238 |
) |
|
|
(2,988 |
) |
|
|
52.4 |
% |
Non
financial income
|
|
|
223 |
|
|
|
217 |
|
|
|
533 |
|
|
|
2.8 |
% |
Operating
expenses
|
|
|
(13,147 |
) |
|
|
(10,996 |
) |
|
|
(33,905 |
) |
|
|
19.6 |
% |
Operating
Income
|
|
|
6,761 |
|
|
|
7,482 |
|
|
|
22,012 |
|
|
|
-9.6 |
% |
Translation
results
|
|
|
1,138 |
|
|
|
381 |
|
|
|
2,968 |
|
|
|
198.5 |
% |
Worker's
profit sharing and income taxes
|
|
|
(2,440 |
) |
|
|
(2,740 |
) |
|
|
(7,408 |
) |
|
|
-11.0 |
% |
Net
income
|
|
|
5,459 |
|
|
|
5,123 |
|
|
|
17,572 |
|
|
|
6.6 |
% |
Contribution
to BCP
|
|
|
5,448 |
|
|
|
5,112 |
|
|
|
17,535 |
|
|
|
6.6 |
% |
Total
loans
|
|
|
318,708 |
|
|
|
289,392 |
|
|
|
318,708 |
|
|
|
10.1 |
% |
Past
due loans
|
|
|
13,352 |
|
|
|
13,314 |
|
|
|
13,352 |
|
|
|
0.3 |
% |
Net
provisions for possible loan losses
|
|
|
(24,987 |
) |
|
|
(25,136 |
) |
|
|
(24,987 |
) |
|
|
-0.6 |
% |
Total
assets
|
|
|
375,773 |
|
|
|
361,827 |
|
|
|
375,773 |
|
|
|
3.9 |
% |
Deposits
and obligations
|
|
|
74,271 |
|
|
|
74,708 |
|
|
|
74,271 |
|
|
|
-0.6 |
% |
Net
shareholders' equity
|
|
|
47,878 |
|
|
|
42,415 |
|
|
|
47,878 |
|
|
|
12.9 |
% |
PDL
/ Total loans
|
|
|
4.2 |
% |
|
|
4.6 |
% |
|
|
4.2 |
% |
|
|
|
|
Coverage
ratio of PDLs
|
|
|
187.1 |
% |
|
|
188.8 |
% |
|
|
187.1 |
% |
|
|
|
|
Return
on average equity*
|
|
|
22.8 |
% |
|
|
22.6 |
% |
|
|
24.6 |
% |
|
|
|
|
Branches
|
|
|
105 |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
Employees
|
|
|
1,534 |
|
|
|
1,538 |
|
|
|
|
|
|
|
|
|
*
Net shareholder´s equity includes US$ 50.7 millions from
goodwill
Edyficar’s
performance in 3Q10 exceeded 2Q10’s excellent results. Noteworthy aspects
include:
(i)
The 10.1% QoQ increase in loans, which topped 2Q10’s QoQ growth of
6.6%;
(ii)
The past due ratio rate went from 4.6% in 2Q10 to 4.2% in 3Q10, which was
attributable to loan growth and the fact that the level of past due loans
reflected virtually no change QoQ;
(iii) The
6.6% QoQ increase in net earnings, which increased Edyficar’s contributions to
BCP and Credicorp; and
(iv)
A satisfactory ROAE of 22.8% (considering the US$ 50.7 million in goodwill) and
48.4% (excluding goodwill).
Despite a
strong increase in operating expenses to train new personnel to prepare for
future growth, at the end of the third quarter, Edyficar reported net earnings
of US$ 5.5 million, rising 6.6% QoQ. This good quarterly performance
was attributable to a 10.6% increase in NII due to loan growth; lower tax
provisions; and an increase in translation earnings, which was attributable to a
1.4% appreciation of the Nuevo Sol in comparison to the 0.5% reported in
2Q10.
NII
reported significant growth (10.6% QoQ). This was due primarily to interest
income stemming from considerable loan growth (10.1% QoQ) as well as adequate
financial management. The latter was reflected in lower financial expenses and
an earnings increase, which was attributable to a successful strategy to
negotiate forward contracts.
Net loan
provisions totaled US$ 1.9 million in 3Q10 (US$ 3.0 million accumulated during
2010). This represented an increase of US$ 650 mil QoQ, which was due to higher
provisions taken to cover loan growth as well as voluntary provisions to
maintain the coverage ratio. It is important to mention that provisions will be
higher next year given that the accounting adjustment made at the time of
purchase will be reported this year.
Operating
expenses grew 19.6% QoQ. This was due primarily to an increase in personnel
expenses stemming from investments in analyst training and additional projects
to prepare Edyficar to capture market growth in the future and achieve the
company’s goals.
Edyficar
reported a past due ratio of 4.2% in 3Q10, which was lower than the 4.6%
reported in 2Q10 due to significant loan growth. Currently, the company’s
strategy is to focus on improving loan quality and collections
management.
Finally,
it is evident that Edyficar’s contribution to BCP continues to rise. This is
reflected in the company’s ROAE, which reached 22.8% in 3Q10 and 24.6% in
accumulated terms.
V.
Atlantic Security Holding Corporation
Quarterly
Results
In order
to compare the results of 3Q10 and 2Q10, we have eliminated the effect of
Credicorp’s
dividends on 2Q10’s results, which
totaled US$ 24.9 million (treasury shares), in the table below:
ASHC
|
|
Quarter
|
|
|
Change %
|
|
|
Year to Date
|
|
|
Change %
|
|
US$ millions
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Net
interest income
|
|
|
8.7 |
|
|
|
8.8 |
|
|
|
7.5 |
|
|
|
-0.8 |
% |
|
|
16.9 |
% |
|
|
26.7 |
|
|
|
20.0 |
|
|
|
33.7 |
% |
Dividend
income
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
45.4 |
% |
|
|
15.2 |
% |
|
|
0.4 |
|
|
|
0.2 |
|
|
|
119.7 |
% |
Fees
and commissions from services
|
|
|
2.1 |
|
|
|
2.0 |
|
|
|
1.5 |
|
|
|
4.7 |
% |
|
|
38.1 |
% |
|
|
6.4 |
|
|
|
4.0 |
|
|
|
60.2 |
% |
Net
gains on foreign exchange transactions
|
|
|
0.0 |
|
|
|
-0.1 |
|
|
|
0.1 |
|
|
|
127.8 |
% |
|
|
-79.3 |
% |
|
|
-0.3 |
|
|
|
-0.5 |
|
|
|
-41.6 |
% |
Total
earnings
|
|
|
11.0 |
|
|
|
10.8 |
|
|
|
9.3 |
|
|
|
1.9 |
% |
|
|
18.9 |
% |
|
|
33.2 |
|
|
|
23.7 |
|
|
|
28.8 |
% |
Net
Provisions
|
|
|
-1.5 |
|
|
|
0.0 |
|
|
|
-0.9 |
|
|
|
100.0 |
% |
|
|
58.7 |
% |
|
|
-1.5 |
|
|
|
-8.4 |
|
|
|
-82.2 |
% |
Net
gains from sale of securities
|
|
|
3.1 |
|
|
|
3.7 |
|
|
|
1.6 |
|
|
|
-18.0 |
% |
|
|
92.9 |
% |
|
|
10.4 |
|
|
|
3.3 |
|
|
|
218.9 |
% |
Other
income
|
|
|
-0.1 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
-180.6 |
% |
|
|
-117.3 |
% |
|
|
0.3 |
|
|
|
2.1 |
|
|
|
-86.2 |
% |
Operating
expenses
|
|
|
-1.9 |
|
|
|
-1.9 |
|
|
|
-2.0 |
|
|
|
-2.7 |
% |
|
|
5.1 |
% |
|
|
-5.6 |
|
|
|
-5.6 |
|
|
|
-0.6 |
% |
Net
income
|
|
|
10.6 |
|
|
|
12.8 |
|
|
|
8.4 |
|
|
|
-17.3 |
% |
|
|
25.5 |
% |
|
|
36.8 |
|
|
|
15.0 |
|
|
|
145.5 |
% |
Net
income / share
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
-17.3 |
% |
|
|
25.5 |
% |
|
|
0.4 |
|
|
|
0.2 |
|
|
|
145.5 |
% |
Contribution
to Credicorp
|
|
|
10.6 |
|
|
|
13.1 |
|
|
|
8.4 |
|
|
|
-18.9 |
% |
|
|
25.6 |
% |
|
|
37.1 |
|
|
|
14.9 |
|
|
|
149.6 |
% |
Total
loans
|
|
|
493.0 |
|
|
|
492.3 |
|
|
|
134.3 |
|
|
|
0.1 |
% |
|
|
267.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
investments available for sale
|
|
|
781.5 |
|
|
|
714.6 |
|
|
|
825.2 |
|
|
|
9.4 |
% |
|
|
-5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
1,527.2 |
|
|
|
1,388.6 |
|
|
|
1,508.4 |
|
|
|
10.0 |
% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
1,249.8 |
|
|
|
1,121.7 |
|
|
|
1,247.7 |
|
|
|
11.4 |
% |
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholder's equity
|
|
|
261.2 |
|
|
|
243.0 |
|
|
|
218.6 |
|
|
|
7.5 |
% |
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin
|
|
|
2.57 |
% |
|
|
2.70 |
% |
|
|
2.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
|
13.6 |
% |
|
|
12.7 |
% |
|
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
on average equity
|
|
|
16.8 |
% |
|
|
22.2 |
% |
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PDL
/ Total loans
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverge
ratio
|
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIS
ratio
|
|
|
20.54 |
% |
|
|
20.81 |
% |
|
|
18.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the
third quarter, Atlantic Security Holding Corporation (ASHC) reported net income
of US$ 10.6 million. The quarterly results reflect the very respectable
evolution of ASHC’s income, which
grew 1.9% QoQ and 19% YoY. Nevertheless, a 17.3% drop in earnings was evident
with regard to the US$12.8 million posted in the second quarter while the YoY
evolution shows an increase of 25.5%.
The
decline in net earnings is primarily attributable to the US$ 1.5 million
provision taken in 3Q10 and a drop in realized earnings (US$ -0.6
million). In previous quarters, no provisions had been set aside for
the investment portfolio; nevertheless, the bank, in accordance with its
conservative and proactive policy, decided to set aside reserves to mitigate
uncertainty regarding some issuers’ recovery.
Realized earnings for securities sales totaled US$ 3.1 million this quarter,
which represents an 18% decline QoQ due to lower trading this
quarter.
Even more
noteworthy was the evolution of ASHC’s income if we
compare the total accumulated in the first 3 quarters of the year with the same
period last year. Interest income grew 33.7% and fee income, the true driver of
growth in the asset management business, grew an impressive 60.2% thus far this
year. The impact on total income is also positive, reaching US$ 11 million in
3Q10 and US$58 million in annual accumulated terms. This reflects a 21% increase
YoY, which, after including realized gains on securities sales due to market
recovery, led accumulated net income to increase almost 145.5% to reach US$ 36.8
million.
If we
look at quarterly performance more closely, fee income in the third quarter was
US$ 2.1 million, which represents a 4.7% increase QoQ and 38.1% YoY. Fee income
from trading and financial instruments in custody, which were adversely affected
in the first two quarters by Peruvian tax reform in 2010, recovered
progressively thanks to new loans and the favorable market valuation of funds
under management. This has generated stable income in terms of fees for
placement, management and custody.
The
efficiency ratio was situated at 13.6%, which was slightly higher than the 12.7%
reported n 2Q10. This drop in efficiency is attributable to lower earnings given
that general expenses remained stable quarter-to-quarter. A YoY comparison
indicates that the efficiency ratio has improved 4.1%.
ROAE fell
QoQ, settling at 16.8% 3Q10. This was due primarily to lower earnings in 2Q10
and higher average shareholder’s
equity.
Assets
and Liabilities
As
indicated below, interest earning assets totaled US$ 1,424 million, which
represents increases of 10.8% QoQ and 1.8% YoY. A significant portion of this
jump in asset volume is attributable to an increase in customer
deposits.
The most
significant variation in interest earning assets is evident in the YoY figures
for Cash and Banks and Loans given that until 3Q09, ASHC maintained deposits in
the Banco de Credito for US$ 356 Million, which reverted to ASHC’s loan portfolio
through a credit line signed by both entities in 2010.
Investments
increased 9.6% QoQ, which reflects market opportunities to invest and reinvest
cash surpluses. In comparison with the same period last year, investments fell
4.9%. This drop is attributable to the current assets structure, which includes
a portion of this decline as available cash.
Interest earning assets*
|
|
Quarter
|
|
|
Change %
|
|
US$
million
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Due
from banks
|
|
|
164 |
|
|
|
93 |
|
|
|
458 |
|
|
|
76.2 |
% |
|
|
-64.2 |
% |
Loans
|
|
|
493 |
|
|
|
492 |
|
|
|
134 |
|
|
|
0.1 |
% |
|
|
267.2 |
% |
Investments
|
|
|
767 |
|
|
|
700 |
|
|
|
807 |
|
|
|
9.6 |
% |
|
|
-4.9 |
% |
Total
interest-earning assets
|
|
|
1,424 |
|
|
|
1,285 |
|
|
|
1,399 |
|
|
|
10.8 |
% |
|
|
1.8 |
% |
(*)
Excludes investments in equities and mutual funds.
|
|
|
|
|
|
A
significant portion of the instruments are investment grade (72%), which
reflects the bank’s prudent policy
to concentrate portfolio investment in instruments with a good risk
profile.
Customer
deposits increased 11.4% with regard to 2Q10, going from US$ 1,121 million to
US$ 1,250 million. Interest rates for deposits experienced a downward trend last
year, which caused deposits to drop during the first three quarters of 2010.
Nevertheless, it is important to point out that this decline was associated with
a higher preference for ASHC’s investment
products.
Equity
has grown sustainably, demonstrating an increase of 7.5% QoQ and 19.5% YoY
(going from US$ 243 million at the end of 2Q10 to US$ 261 million at the close
of 3Q10). This increase is reflected primarily in two components:
quarterly net income for US$10.6 million and an increase in the market value of
investments due to unrealized earnings of US$ 7.5 million, which pushed total
value to US$ 32.9 million.
Asset
Administration
The
deposits’
total and AuM include investments in proprietary mutual funds and financial
instruments in custody. The total of these funds has increased 14.7% QoQ and
30.6% YoY.
AuM
increased 16.2% QoQ. This is consistent with the increase in investment observed
during the last few quarters due to overall market recovery and corresponding
improvements in the market value of investments and AuM, which have driven
customers to increase their positions through direct purchases. The YoY increase
is also due to market recovery and an increase in purchases.
VI.
Prima AFP
PRIMA’s fee income grew
4.1% QoQ to reach US$ 21.8 million and as a result operating income increased
3.8% QoQ. PRIMA’s net income in the third quarter totaled US$ 5.7 million, which
represented a decline of 2.8% QoQ that was attributable to higher tax provisions
and employee profit sharing.
PRIMA’s commercial
strategy in the third quarter focused on new captures and affiliations. In this
context, new affiliations were up QoQ due to an increase in the economically
active population. On the other hand, transfers between AFPs remained low. At
the end of the third quarter, PRIMA’s funds under
management represented 30.9% of total funds managed by the system, confirming
the company’s
leadership in market share for this indicator. PRIMA accounted for 32.0% of the
system’s
total contributions collections and achieved a 43.4% share of the voluntary
contributions market.
Quarterly
main indicators and market share
|
|
PRIMA
3Q10
|
|
|
System
3Q10
|
|
|
Part.
3Q10 %
|
|
|
PRIMA
2Q10
|
|
|
System
2Q10
|
|
|
Part.
2Q10 %
|
|
Affiliates
|
|
|
1,110,105 |
|
|
|
4,587,455 |
|
|
|
24.2 |
% |
|
|
1,098,912 |
|
|
|
4,540,512 |
|
|
|
24.2 |
% |
New
affiliations (1)
|
|
|
13,592 |
|
|
|
56,112 |
|
|
|
24.2 |
% |
|
|
12,534 |
|
|
|
47,785 |
|
|
|
26.2 |
% |
Funds
under management US$ million
|
|
|
8,911 |
|
|
|
28,836 |
|
|
|
30.9 |
% |
|
|
7,657 |
|
|
|
24,807 |
|
|
|
30.9 |
% |
Collections
US$ million (1)
|
|
|
147 |
|
|
|
460 |
|
|
|
32.0 |
% |
|
|
141 |
|
|
|
442 |
|
|
|
31.8 |
% |
Voluntary
contributions US$ million
|
|
|
101 |
|
|
|
233 |
|
|
|
43.4 |
% |
|
|
86 |
|
|
|
203 |
|
|
|
42.4 |
% |
RAM
US$ million (2)
|
|
|
423 |
|
|
|
1,325 |
|
|
|
31.9 |
% |
|
|
407 |
|
|
|
1,270 |
|
|
|
32.0 |
% |
Source:
Superintendencia de Banca, Seguros y AFP
(1)
Accumulated to the Quarter.
(2)
PRIMA AFP estimates: average of aggregated income during the last 4 months
excluding special collections and voluntary contribution fees
Commercial
Results
In 3Q10,
new affiliations showed an increase with regard to last quarter’s figures while
the number of transfers fell slightly. In this context, there were approximately
15,900 total captures. In disaggregated terms, this represented close to 13,600
new affiliations and 2,300 transfers and was in line with the company’s commercial
targets. With regards to last quarter, new affiliations increased 8.4% and
transfers fell 3%. It is important to mention that net affiliations and
transfers (entry and exit) were positive for PRIMA in terms of QoQ RAM
evolution. RAM continues to follow an upward trend, which has helped PRIMA
maintain market leadership with a 31.9% share.
At the
end of the third quarter, PRIMA’s funds under
management reached US$ 8,911 million, which represented 30.9% of the system
total. This confirms PRIMA’s market
leadership in terms of this indicator.
Investments
PRIMA’s funds under
management demonstrated favorable results in the third quarter. This was
reflected in an increase of its managed portfolio, which totaled US$ 8,911
million at the end of September. Profitability at twelve months (September
2010/September 2009) was 7.21%, 15.80% and 21.71% for funds 1, 2 and 3,
respectively. With these results, Prima is market leader in profitability for
funds 2 and 3 and is in second place in fund 1.
Pension
funds are long-term by nature and comparisons should contemplate this fact. With
this in mind, annualized profitability over a five-year period (September 2010 /
September 2005) for fund 2 – the only fund in
the system at that time- was 15.17%, which represents the highest profitability
of the system. If we extend the period of analysis to include the time period
ranging from the system’s start-up (17
years ago) to present day, the private pension system has achieved an average
nominal annualized yield of 14.50% and a real figure of
9.07%.
The table
below shows the structure of PRIMA’s managed
portfolio at the end of the third quarter:
Funds
under management as of September 2010
|
|
|
|
Sep 10
|
|
|
Share %
|
|
|
Jun 10
|
|
|
Share %
|
|
Fund
1
|
|
|
699 |
|
|
|
7.8 |
% |
|
|
658 |
|
|
|
8.6 |
% |
Fund
2
|
|
|
5,889 |
|
|
|
66.1 |
% |
|
|
5,122 |
|
|
|
66.9 |
% |
Fund
3
|
|
|
2,323 |
|
|
|
26.1 |
% |
|
|
1,877 |
|
|
|
24.5 |
% |
Total
US$ millon
|
|
|
8,911 |
|
|
|
100 |
% |
|
|
7,657 |
|
|
|
100 |
% |
Source:
Superintendencia de Banca, Seguros y AFP
|
|
Financial
Results
PRIMA’s net earnings in
the third quarter were US$ 5.7 million, which represents a 2.8% decline QoQ.
This is attributable to higher tax provisions and employee profit sharing this
quarter rather than operating income, which increased 3.8% QoQ. Operating income
is backed by a solid income generation (monthly insured wages), an appreciation
in local currency and the company’s conservative
approach to operating expenses. Nevertheless, total operating expenses increased
QoQ due to a seasonality effect attributable to higher advertising and marketing
expenses this quarter.
With
regard to YoY results, operating income increased 24.6% and net income remained
virtually unchanged (+0.6%) due to the fact that in 3Q09, reversals were taken
in the tax and employee profit sharing account that generated differences in the
YoY comparison.
Income
In the
third quarter of 2010, PRIMA reported fee income of US$ 21.8 million, which
represented 4.1% growth QoQ. This increase in income was due to adequate
commercial management and the domestic economy’s good evolution
as well as an appreciation in local currency.
The
favorable effect on income is also evident in the YoY comparison, which
indicates an increase of 15.0%.
In terms
of RAM volume, which indicates aggregate salaries of system affiliates and
represents each company’s income base,
PRIMA has maintained a solid market position with a RAM base of US$ 423 million
at the end of September 2010.
Estimate
of base to calculate earnings - US$ million
|
|
|
|
PRIMA - Sep 2010
|
|
|
System - Sep 2010
|
|
|
Share %
|
|
Income
(1)
|
|
|
7.4 |
|
|
|
25.1 |
|
|
|
29.5 |
% |
Administrative
fees
|
|
|
1.75 |
% |
|
n.a.
|
|
|
n.a.
|
|
RAM
base (2)
|
|
|
423 |
|
|
|
1,325 |
|
|
|
31.9 |
% |
PRIMA
AFP estimates. In accordance to local public
infomation, (CONASEV)
(1)
Average income from the last four months, excluding special collections
and voluntary contribution fees
(2) RAM:
average of aggregated income during the last 4 months excluding special
collections and voluntary contributions
fees.
|
|
Expenditures
In the
third quarter of 2010, PRIMA’s operating
expenses demonstrated an increase of 5.9% with regard to the previous quarter
due to higher provisions for personnel expenses and charges for third party
services (investment management and advertising/marketing).
Nevertheless,
thanks to higher earnings this quarter, operating income increased 3.8% QoQ. It
is important to point out that expenses for depreciation and amortization
totaled US$ 2.4 million, which includes charges for intangible asset
amortization (obtained due to the merger with Unión Vida), as well
as depreciation and amortization on real estate, equipment and systems.
Provisions
associated with income tax payments and employee profit sharing increased in the
third quarter, resulting in charges for US$ 3.8 million. Local currency
appreciation in 3Q10 led to a translation loss and deferred liability adjustment
for -US$ 88 thousand, which was primarily attributable to the exchange rate’s effect on
liabilities denominated in Nuevos Soles.
Finally,
PRIMA’s net
income in the third quarter totaled US$ 5.7 million, which represented a slight
decrease with regard to 2Q10’s results.
At the
end of September 2010, PRIMA reported an assets level of US$ 260.2 million.
Shareholders’
equity reached US$ 169.2 million and liabilities totaled US$ 91.0
million.
The table
below provides details on the financial results:
|
|
|
|
|
|
|
|
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
Main financial indicators (US$ thousand) (1)
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Income
from commissions
|
|
|
21,812 |
|
|
|
20,943 |
|
|
|
18,972 |
|
|
|
4.1 |
% |
|
|
15.0 |
% |
|
|
63,249 |
|
|
|
58,887 |
|
|
|
7.4 |
% |
Administrative
and sale expenses
|
|
|
(9,516 |
) |
|
|
(8,984 |
) |
|
|
(8,718 |
) |
|
|
5.9 |
% |
|
|
9.2 |
% |
|
|
(27,327 |
) |
|
|
(25,497 |
) |
|
|
7.2 |
% |
Depreciation
and amortization
|
|
|
(2,443 |
) |
|
|
(2,465 |
) |
|
|
(2,344 |
) |
|
|
-0.9 |
% |
|
|
4.2 |
% |
|
|
(7,375 |
) |
|
|
(6,967 |
) |
|
|
5.9 |
% |
Operating
income
|
|
|
9,853 |
|
|
|
9,494 |
|
|
|
7,910 |
|
|
|
3.8 |
% |
|
|
24.6 |
% |
|
|
28,548 |
|
|
|
26,424 |
|
|
|
8.0 |
% |
Other
income and expenses, net
|
|
|
(298 |
) |
|
|
(736 |
) |
|
|
(1,035 |
) |
|
|
-59.6 |
% |
|
|
-71.2 |
% |
|
|
(1,663 |
) |
|
|
(2,472 |
) |
|
|
-32.7 |
% |
Employee
profit sharing and income tax
|
|
|
(3,771 |
) |
|
|
(2,826 |
) |
|
|
(749 |
) |
|
|
33.4 |
% |
|
|
403.5 |
% |
|
|
(9,003 |
) |
|
|
(6,517 |
) |
|
|
38.1 |
% |
Net
income before translation results
|
|
|
5,784 |
|
|
|
5,932 |
|
|
|
6,126 |
|
|
|
-2.5 |
% |
|
|
-5.6 |
% |
|
|
17,882 |
|
|
|
17,434 |
|
|
|
2.6 |
% |
Translations
results and deferred liabilities
|
|
|
(88 |
) |
|
|
(75 |
) |
|
|
(462 |
) |
|
|
17.3 |
% |
|
|
-80.9 |
% |
|
|
(383 |
) |
|
|
(860 |
) |
|
|
-55.4 |
% |
Net
income
|
|
|
5,696 |
|
|
|
5,857 |
|
|
|
5,664 |
|
|
|
-2.7 |
% |
|
|
0.6 |
% |
|
|
17,499 |
|
|
|
16,574 |
|
|
|
5.6 |
% |
Total
assets
|
|
|
260,186 |
|
|
|
242,363 |
|
|
|
241,161 |
|
|
|
7.4 |
% |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
91,002 |
|
|
|
86,417 |
|
|
|
86,011 |
|
|
|
5.3 |
% |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholders' equity
|
|
|
169,184 |
|
|
|
155,945 |
|
|
|
155,150 |
|
|
|
8.5 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
IFRS
VII. El
Pacífico Peruano Suiza and Subsidiaries
Grupo
Pacifico
Pacífico Insurance
Group, which is comprised of general insurance (PPS), life
insurance (PV) and health insurance (EPS), demonstrated a significant
increase in premiums across its business lines; significant growth in net
financial income; and a stable loss ratio, which is reflected in net income
of US$ 13.7 million in 3Q10. This figure, although lower than the US$
16.5 million posted in 2Q10, tops 3Q09's net income of US$ 13.3
million. The significant increase in premiums in the property and casualty
business is attributable to an increase in policies with the State and the
construction sector. Many of these contracts are ceded to the facultative
market, while the increase in premiums in the life segment is due to higher
sales of pension products.
The
underwriting result in 3Q10 totaled US$ 24.2 million, which represents a 12.8%
decrease with regard to the US$ 27.8 million obtained in 2Q10. This is primarily
attributable to the life insurance business (PV), which reported: i) higher
sales for retirement plans in 3Q10, which led to higher underwriting reserves
and subsequently lower net earned premiums this quarter (US$ 35.9 million in
3Q10 vs. US$ 39.8 million in 2Q10); ii) higher acquisition costs, which went
from US$ 11.4MM in 2Q10 to US$ 12.9MM in 3Q10; and iii) a higher loss ratio of
70.2% vs. 60.4% in 2Q10.
Net
financial income reported earnings of US$ 25.3 million. This represented a 20.8%
increase with regard to the US$ 20.9 million reported in 2Q10 and was mainly
attributable to the life insurance business (PV).
General
expenses rose to US$ 29.4 million in 3Q10 vs. US$ 25.1 million in 2Q10, due
primarily to: i) an increase in third party services associated with consultancy
and ii) higher provisions for uncollectible reinsurance reserves, both in the
general insurance business (PPS).
Finally,
the company’s contribution to Credicorp in 3Q10 was US$ 10.4 million, which is
16.6% lower than 2Q10’s figure but represents a 3.5% increase of US$ 10.1
million in terms of 3Q09’s level.
In this
scenario, Pacifico Insurance Group reported net income of US$ 42.3 million
accumulated to the end of September, which represents an increase of 28.6% with
regard to the US$ 32.9 million obtained during the same period last year. The
aforementioned is the result of higher turnover in all business lines, and a
significant drop in claims in general and life insurance businesses.
US$ Thousand
|
|
Net income
|
|
|
Adjustment for
|
|
|
Total
|
|
Period
|
|
PPS
|
|
|
PV*
|
|
|
EPS
|
|
|
PGA*
|
|
|
Consolidation
|
|
|
Contribution
|
|
3Q09
|
|
|
9,555 |
|
|
|
4,263 |
|
|
|
(540 |
) |
|
|
13,277 |
|
|
|
(3,189 |
) |
|
|
10,088 |
|
4Q09
|
|
|
9,004 |
|
|
|
6,495 |
|
|
|
788 |
|
|
|
16,288 |
|
|
|
(3,917 |
) |
|
|
12,372 |
|
1Q10
|
|
|
5,626 |
|
|
|
4,810 |
|
|
|
1,658 |
|
|
|
12,095 |
|
|
|
(3,603 |
) |
|
|
8,492 |
|
2Q10
|
|
|
8,101 |
|
|
|
6,502 |
|
|
|
1,872 |
|
|
|
16,475 |
|
|
|
(3,957 |
) |
|
|
12,518 |
|
3Q10
|
|
|
7,665 |
|
|
|
4,316 |
|
|
|
1,760 |
|
|
|
13,741 |
|
|
|
(3,302 |
) |
|
|
10,439 |
|
QoQ
|
|
|
-5.4 |
% |
|
|
-33.6 |
% |
|
|
-6.0 |
% |
|
|
-16.6 |
% |
|
|
- |
|
|
|
-16.6 |
% |
YoY
|
|
|
-19.8 |
% |
|
|
1.2 |
% |
|
|
425.7 |
% |
|
|
3.5 |
% |
|
|
- |
|
|
|
3.5 |
% |
*
After deducting minority interest
Pacífico
General Insurance (PPS)
PPS’s net
income in 3Q10 was US$ 7.7 million, which was lower than the US$ 8.1 million
reported in 2Q10 and the US$ 9.6 million posted in 3Q09. Nevertheless, net
income of US$ 21.4 million accumulated to the end of September, represents an
increase of 25.0% with regard to the same period last year. It is important to
emphasize that the underwriting result reflects a significant increase of 12.9%
with regard to 2Q10 due to a considerable decline in net claims in property and
casualty (P & C).
The
difference in net income with regard to 2Q10 is primarily attributable to: i)
lower financial income, which fell 12.3% QoQ from US$ 6.6 million in 2Q10 to US$
5.8 million in 3Q10 due to a drop in dividends payments this quarter; and ii) an
increase in general expenses, which went from US$ 13.3 million in 2Q10 to US$
17.0 million in 3Q10 due to an increase in third party consultancy services and
provisions for uncollectible reinsurance reserves.
Technical
Results by Business Unit
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
US$
millon
|
|
Vehicle
Insurance
|
|
|
Private
Health
|
|
|
P&C
|
|
|
TOTAL
PPS
|
|
|
Vehicle
Insurance
|
|
|
Private
Health
|
|
|
P&C
|
|
|
TOTAL
PPS
|
|
|
Vehicle
Insurance
|
|
|
Private
Health
|
|
|
P&C
|
|
|
TOTAL
PPS
|
|
Net
earned premiums
|
|
|
20.8 |
|
|
|
16.0 |
|
|
|
14.3 |
|
|
|
51.1 |
|
|
|
20.6 |
|
|
|
15.2 |
|
|
|
15.3 |
|
|
|
51.1 |
|
|
|
20.3 |
|
|
|
13.8 |
|
|
|
16.2 |
|
|
|
50.3 |
|
Underwriting
results
|
|
|
7.3 |
|
|
|
3.3 |
|
|
|
9.9 |
|
|
|
20.5 |
|
|
|
7.7 |
|
|
|
3.9 |
|
|
|
6.5 |
|
|
|
18.1 |
|
|
|
7.3 |
|
|
|
1.5 |
|
|
|
9.3 |
|
|
|
18.1 |
|
Loss
ratio
|
|
|
42.5 |
% |
|
|
70.8 |
% |
|
|
16.1 |
% |
|
|
44.0 |
% |
|
|
41.8 |
% |
|
|
66.2 |
% |
|
|
41.8 |
% |
|
|
49.0 |
% |
|
|
45.5 |
% |
|
|
81.2 |
% |
|
|
32.9 |
% |
|
|
51.2 |
% |
Underwriting
results / net earned premiums
|
|
|
35.1 |
% |
|
|
20.6 |
% |
|
|
69.1 |
% |
|
|
40.1 |
% |
|
|
37.5 |
% |
|
|
25.5 |
% |
|
|
42.6 |
% |
|
|
35.5 |
% |
|
|
36.2 |
% |
|
|
10.7 |
% |
|
|
57.1 |
% |
|
|
36.0 |
% |
PPS’s
underwriting result was US$ 20.5 million. This 12.9% increase is due primarily
to the Property and Casualty Line (P & C), which report a lower loss ratio
and an increase in net earned premiums. In the paragraphs below, we
provide details on this business line’s evolution.
|
·
|
The
Property and Casualty business’s technical result increased US$ 3.3
million QoQ given that the overall loss ratio fell from 41.8% in2Q10 to
16.1% in 3Q10. This considerable decline is due to claims
reversals from previous quarters as well as adequate risk selection and
pricing. Additionally, net earned premiums reported 7% growth QoQ.
|
|
·
|
The
underwriting result for Vehicle Insurance was US$ 7.3 million in 3Q10,
dropping from US$ 7.7 million in 2Q10. This is attributable to lower
underwriting results in both the Auto as well as the Statutory Auto
Liability line (SOAT). Nevertheless, it is important to emphasize that in
both lines exposure has increased and have effectively controlled net
claims throughout the year.
|
The
underwriting result for the Auto line was US$ 6.4 million in 3Q10, which falls
below 2Q10’s figure and was due to an increase in net fees, which rose 11.2%
QoQ.
The
Statutory Auto Liability Line (SOAT) reported an underwriting result of US$ 0.9
million in 3Q10, which fell below the earnings of US$ 1.3 million registered in
2Q10. This is due primarily to higher net claims for severe incidents this
quarter.
|
·
|
In
3Q10, the Private Health Insurance line obtained an underwriting result of
US$ 3.3 million, which falls below the US$ 3.9 million reported in 2Q10.
This was attributable to a higher loss ratio this quarter, which increased
to 70.8% in 3Q10 (compared to 66.2% in 2Q10) due to an increase in claims
typical in winter months. This situation was partially offset by higher
net earned premiums, which grew 5%
QoQ.
|
With
regard to results in the general insurance segment in 3Q10 (PPS), it is
important to mention the following: (i) income for net insurance premiums was
US$ 51.1 million while (ii) total operating costs reached US$ 17.0 million. With
these results, we obtain a (iii) combined ratio this quarter of 93.3%, 44.0
points of which correspond to losses and loss adjustment expenses, 16.0 points
to business acquisition costs and 33.3 points to general or administrative
expenses.
Pacífico
Vida (PV)
Pacifico
Vida obtained net income before minority interest of US$ 7.0 million in 3Q10,
which is lower than the US$ 10.5 million obtained in 2Q10 and is attributable to
the underwriting loss registered this quarter. Nevertheless, this result was
offset by a significant increase in sales of pension products due to the Early
Retirement Regimen recently implemented in the Peruvian
market.
The
underwriting result in 3Q10 of US$ (2.2) million is due primarily to: i) lower
net earned premiums of US$ 35.9 million in 3Q10 vs. US$ 39.8 million in 2Q10 due
to an increase in sales of pension products, which in turn required more
underwriting reserves, ii) higher net claims in the third quarter of the year,
which went from US$ 24.1 million in 2Q10 to US$ 25.2 million in 3Q10 and iii)
higher acquisition costs due to an increase in fees, which totaled US$ 10.6
million in 3Q10 vs. US$ 9.4 million in 2Q10.
Pacífico
Vida
Products
|
|
Total Premiums
|
|
|
Change %
|
|
US$ million
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Individual
life
|
|
|
14.8 |
|
|
|
14.0 |
|
|
|
12.7 |
|
|
|
5.8 |
% |
|
|
16.7 |
% |
Individual
annuity
|
|
|
29.0 |
|
|
|
12.9 |
|
|
|
10.3 |
|
|
|
124.9 |
% |
|
|
181.5 |
% |
Disability
& survivor (Pension)
|
|
|
11.5 |
|
|
|
11.3 |
|
|
|
8.2 |
|
|
|
1.1 |
% |
|
|
40.7 |
% |
Credit
Life
|
|
|
9.0 |
|
|
|
7.2 |
|
|
|
5.9 |
|
|
|
24.1 |
% |
|
|
53.3 |
% |
Personal
accidents
|
|
|
3.0 |
|
|
|
2.9 |
|
|
|
2.8 |
|
|
|
3.5 |
% |
|
|
10.2 |
% |
Group
life (Law)
|
|
|
2.4 |
|
|
|
2.4 |
|
|
|
2.1 |
|
|
|
2.4 |
% |
|
|
16.0 |
% |
Group
life
|
|
|
2.8 |
|
|
|
4.3 |
|
|
|
3.2 |
|
|
|
-36.3 |
% |
|
|
-13.4 |
% |
Limited
workers compensation
|
|
|
3.5 |
|
|
|
2.6 |
|
|
|
2.8 |
|
|
|
36.3 |
% |
|
|
25.5 |
% |
TOTAL
|
|
|
75.9 |
|
|
|
57.6 |
|
|
|
47.8 |
|
|
|
31.7 |
% |
|
|
58.9 |
% |
The
increase in net financial income of US$19.2 million this quarter, compared to
the US$ 14.4 million obtained in 2Q10, is primarily attributable to higher
earnings on sales of real estate and securities.
General
expenses in 3Q10 fell slightly (0.6%) with regard to 2Q10, reaching a total of
US$8.8 million.
After
excluding Alico’s minority interest of US$ 2.6 million, net income in the life
segment totaled US$ 4.3 million in 3Q10.
Pacífico
Salud (EPS)
Pacifico
Salud reported net income of US$ 1.8 million in 3Q10, which is similar to the
US$ 1.9 million registered last quarter. It is important to mention that EPS’s
YoY evolution is very satisfactory since it represented a loss of US$ 0.5
million in 3Q09.
EPS
achieved an underwriting result of US$ 6.1 million, which tops the US$ 5.3
million obtained in 2Q10. In 3Q10, net earned premiums totaled US$ 37.7 million,
which represents 8.5% growth QoQ. The loss ratio fell this quarter, dropping
from 78.4% in 2Q10 to 77.4% in 3Q10. Nevertheless the higher operating expenses
led to net earnings of US$ 1.8 million in 3Q10.
The
extraordinary QoQ results achieved in terms of premium growth and underwriting
results, which were 9.2% and 14.7% respectively, as well as solid accumulated
growth in earnings during a seasonal period that is usually characterized by
high claims, are proof that the company manages claims and continuous
negotiation efficiently while optimizing the supply of health
providers.
VIII.
Economic Outlook
Economic
Activity
According
to estimates, during 3Q10, the economy grew at an annual rate that was slightly
higher than 8.5%, which, when compared with growth in 2Q10, reflects a slowdown
in the pace of growth. This is in line with the policies implemented by the
Central Bank since May, which are directed at keeping growth moderate due to the
inflationary risk implicit in rapid expansion that is differentiated by
sectors.
The
economy’s
dynamism is not homogeneous across sectors. Similar to the last quarter,
non-primary sectors, particularly construction and manufacturing, led growth.
This contrasts with the situation of primary sectors, which lagged behind and
even reported negative growth. It is important to point out that part of the
upturn in growth is attributable to higher dynamism in tax collections for
imported products, given that taxes are considered as a component of GDP.
In terms
of spending type, private investment continues to be a pillar of growth. This
will more than likely continue throughout the electoral process due to
expectations linked to mining project execution. Exports have grown very little
in comparison to last year while imports demonstrate considerable dynamism. In
light of its recent evolution, the economy is expected to grow 7.8% in 2010.
This forecast may be revised upward while growth for next year is expected to
hit 6.3%
With
regard to fiscal policy, the role that public spending has had in growth is
unclear. Public spending appears to have slowed down since May, particularly in
terms of investment, but public spending in August reported significant growth,
driven by manufacturing activity associated with the purchase of buses for the
Metropolitan line.
External
Sector
According
to estimates, in 2Q10, the trade balance registered a surplus of approximately
US$ 1,200 MM, which is lower than the US$ 1,500 MM reported in previous
quarters. This is primarily attributable to the fact that imports have bounced
back in a context of a recovery in internal demand, reporting levels above those
reported for exports, which have grown month on month throughout the
year.
The
evolution of exports is primarily the result of dynamism in traditional exports,
which has benefited from higher international prices for gold in a context of
uncertainty regarding the direction the global economy is
taking. Non-traditional exports grew at a slower pace due to
developed economies’ sluggish
performance.
Imports
have bounced back considerably. In this scenario, consumer goods were the most
dynamic and although capital goods (+44.1%) grew less than any other component,
they expanded at a faster rate than the most dynamic group of exports
(traditional, 28.5%).
The trade
balance continues to drop, which coupled with a recovery in the earnings that
foreign mining companies send to their headquarters, has led to a negative
current account balance. Nevertheless, investment flows to emerging countries
have benefited from an additional round of monetary stimuli in developed
countries, which means that the net entry of capital on the financial side will
more than compensate for the negative balance. In this context, a significant
increase in BCR’s international
reserves has been reported (US$ 10,260 MM since the beginning of the year until
the first week of October, which brought the balance to US$ 43,395 MM) as the
bank has stepped up its efforts to buy dollars in the foreign exchange market.
Prices
and Exchange Rate
At the
end of 3Q10, annual inflation was situated at 2.4%, which reflects a slightly
upward trend but remains within the target range set by the Central Bank (2% +/-
1pp). Expectations for the coming months indicate that the situation will remain
stable.
In
effect, core inflation has stabilized at approximately 1.8% over the last few
months. This is due to the fact that although growth in the food and beverages
segment has begun to slow down in comparison to the levels seen in the first few
months of 2010, it continues to report the highest growth rate thus far this
year. Figures for fuels have been revised downward, so one of the
main sources of the increase in inflation during the first few months of the
year appears to be under control.
At the
end of the year, inflation will be situated in the upper end of the target
range, bolstered by moderate increases in food prices and the fact that fuel
prices have experienced almost no changes.
The
exchange rate will maintain its downward pressure, situating at S/. 2.78 at
year-end with a moderate downward bias, which will depend on the magnitude of
the Central Bank’s interventions.
Nevertheless, the issuing entity tends to actively intervene in the foreign
exchange market due to the fact that in relative terms, Peru’s dollarization is
high. BCR’s
interventions have caused the Nuevo Sol to depreciate in real terms against the
currencies of other Latin American countries, which has created a favorable
competitive context.
Consumer Price Index
(Annual percentage
variation)
|
Exchange
Rate
(Nuevos
Soles for US$)
|
Fiscal
Sector
In
August, transactions in the non-financial public sector continued to reflect
growth in tax income. This was in turn attributable to more dynamism in indirect
taxes, driven primarily by the ISC (associated with the evolution of
imports).
In the
last few months, total tax collections have grown at an annual rate of 13.7%,
which is the highest figure recorded since July 2008. A 50.9%
increase in import tax collections was reported in August and internal
Added-value tax rose 45.6%. In this context, the economic result for the month
of August was S/. 270 MM compared to the S/. 670 MM deficit reported for the
same month last year when a slight adjustment was evident in public
spending.
The
fiscal goal for the end of this year is to reach a deficit equivalent to 1.5% of
GDP. The recently appointed Minister of Economy has said that his priority will
be to ensure that the deficit is closer to 1.0% of GDP. This will generate a
margin for fiscal maneuvering if the global macroeconomic environment
deteriorates.
Banking
System
According
to BCR’s
figures for August, banking system loans to the private sector fell 0.2% MoM,
which was the first drop since September of last year. This result was
attributable to the evolution of loans denominated in foreign currency (which
fell 0.6% in dollars) given that loans denominated in local currency, which
slowed down slightly, continued to grow. In annual terms,
loans increased 14.1% in August, maintaining an upward trend that began in
February. This occurred despite the evolution of exchange rate given that loans
would have grown at an annual rate of 16.9% if the exchange rate had remained
steady.
Loan
dollarization at entities authorized by the regulating entity to capture public
deposits has continued a downward trend to settle at 44.8% in August, which is
the lowest level recorded for this indicator in history. This is in line with
the Central Bank’s intention to
ensure that Peru is the first country in the world in which de-dollarization has
been achieved without a shove from the issuing entity.
Finally,
the downward trend for interest rates in soles was interrupted by BCR’s increases in
reference rate, which began in May and were complemented by higher reserve
requirements for both national and foreign currencies.
In this
context, TAMN reached 18.3% at the end of 3Q10, which although lower than the
figure recorded at the end of 2Q10 (19.1%), reflects an increase over
August’s
figure (18.1%). Along the same lines, TIPMN went from 1.4% at the end of 2Q10 to
1.7% in the month of September. The increase in rates for time deposits and CTS
were particularly noteworthy.
In terms
of rates in dollars, TAMEX increased from 8.0% in 2Q10 to 3.7% in 3Q10 despite a
considerable drop in the cost of loans for micro businesses. TIPMEX went from
0.7% to 0.9% this quarter and similar to local currency, the increase in rates
for time deposits and CTS stood out.
Main
Financial Indicators
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
|
Year
|
|
|
IQ
|
|
|
IIQ
|
|
|
IIIQ
|
|
|
IVQ
|
|
|
Year
|
|
|
IQ
|
|
|
IIQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GDP
(US$ MM)
|
|
|
127,643 |
|
|
|
27,914 |
|
|
|
31,927 |
|
|
|
32,010 |
|
|
|
35,302 |
|
|
|
127,153 |
|
|
|
35,222 |
|
|
|
38,880 |
|
Real
GDP (var. %)
|
|
|
9.8 |
|
|
|
1.9 |
|
|
|
-1.2 |
|
|
|
-0.6 |
|
|
|
3.4 |
|
|
|
0.9 |
|
|
|
6.1 |
|
|
|
10.1 |
|
GDP
per-capita (US$)
|
|
|
4,532 |
|
|
|
3,888 |
|
|
|
4,407 |
|
|
|
4,379 |
|
|
|
4,786 |
|
|
|
4,365 |
|
|
|
4,733 |
|
|
|
5,178 |
|
Domestic
demand (var. %)
|
|
|
12.1 |
|
|
|
-0.8 |
|
|
|
-5.8 |
|
|
|
-5.0 |
|
|
|
0.4 |
|
|
|
-2.9 |
|
|
|
8.1 |
|
|
|
14.0 |
|
Consumption
(var. %)
|
|
|
8.7 |
|
|
|
4.1 |
|
|
|
1.6 |
|
|
|
1.0 |
|
|
|
2.8 |
|
|
|
2.4 |
|
|
|
5.4 |
|
|
|
5.8 |
|
Private
Investment (var. %)
|
|
|
28.3 |
|
|
|
4.3 |
|
|
|
-16.0 |
|
|
|
-14.6 |
|
|
|
-5.9 |
|
|
|
-8.6 |
|
|
|
12.2 |
|
|
|
28.4 |
|
CPI
(annual change, %)
|
|
|
6.7 |
|
|
|
4.8 |
|
|
|
3.1 |
|
|
|
1.2 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.8 |
|
|
|
1.6 |
|
Exchange
rate, eop (S/. per US$)
|
|
|
3.14 |
|
|
|
3.16 |
|
|
|
3.01 |
|
|
|
2.88 |
|
|
|
2.89 |
|
|
|
2.89 |
|
|
|
2.84 |
|
|
|
2.83 |
|
Devaluation
(annual change, %)
|
|
|
4.7 |
|
|
|
15.2 |
|
|
|
1.5 |
|
|
|
-3.1 |
|
|
|
-8.0 |
|
|
|
-8.0 |
|
|
|
-10.2 |
|
|
|
-6.1 |
|
Exchange
rate, average (S/. per US$)
|
|
|
2.92 |
|
|
|
3.18 |
|
|
|
3.02 |
|
|
|
2.96 |
|
|
|
2.89 |
|
|
|
3.01 |
|
|
|
2.84 |
|
|
|
2.84 |
|
Non-Financial
Public Sector (% of GDP)
|
|
|
2.1 |
|
|
|
2.6 |
|
|
|
1.8 |
|
|
|
-3.2 |
|
|
|
-8.2 |
|
|
|
-1.9 |
|
|
|
2.9 |
|
|
|
1.8 |
|
Central
government current revenues (% of GDP)
|
|
|
18.2 |
|
|
|
16.5 |
|
|
|
16.7 |
|
|
|
15.3 |
|
|
|
15.2 |
|
|
|
15.9 |
|
|
|
18.2 |
|
|
|
18.0 |
|
Tax
Income (% of GDP)
|
|
|
15.6 |
|
|
|
14.6 |
|
|
|
14.1 |
|
|
|
13.0 |
|
|
|
13.4 |
|
|
|
13.8 |
|
|
|
15.4 |
|
|
|
15.6 |
|
Non
Tax Income (% of GDP)
|
|
|
2.6 |
|
|
|
1.9 |
|
|
|
2.6 |
|
|
|
2.2 |
|
|
|
1.8 |
|
|
|
2.1 |
|
|
|
2.7 |
|
|
|
2.3 |
|
Current
expenditures (% of GDP)
|
|
|
12.4 |
|
|
|
11.8 |
|
|
|
10.7 |
|
|
|
14.8 |
|
|
|
13.5 |
|
|
|
12.7 |
|
|
|
11.3 |
|
|
|
10.3 |
|
Capital
expenditures (% of GDP)
|
|
|
4.4 |
|
|
|
3.5 |
|
|
|
4.5 |
|
|
|
6.1 |
|
|
|
10.1 |
|
|
|
6.1 |
|
|
|
3.9 |
|
|
|
5.9 |
|
Trade
Balance (US$ MM)
|
|
|
3,090 |
|
|
|
513 |
|
|
|
1,335 |
|
|
|
1,838 |
|
|
|
2,188 |
|
|
|
5,873 |
|
|
|
1,570 |
|
|
|
1,517 |
|
Exports
(US$ MM)
|
|
|
31,529 |
|
|
|
5,396 |
|
|
|
6,161 |
|
|
|
7,169 |
|
|
|
8,159 |
|
|
|
26,885 |
|
|
|
7,905 |
|
|
|
8,126 |
|
Imports
(US$ MM)
|
|
|
28,439 |
|
|
|
4,883 |
|
|
|
4,827 |
|
|
|
5,330 |
|
|
|
5,971 |
|
|
|
21,011 |
|
|
|
6,335 |
|
|
|
6,609 |
|
Current
Account Balance (US$ MM)
|
|
|
-4,723 |
|
|
|
-391 |
|
|
|
106 |
|
|
|
264 |
|
|
|
267 |
|
|
|
247 |
|
|
|
-460 |
|
|
|
-329 |
|
Current
Account Balance (% of GDP)
|
|
|
-3.7 |
|
|
|
-1.4 |
|
|
|
0.3 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
|
-1.3 |
|
|
|
-0.8 |
|
Source: BCR, INEI,
Estimated by BCP
Company
Description:
Credicorp
Ltd. (NYSE: BAP) is the leading financial services holding company in Peru. It
primarily operates via its four principal Subsidiaries: Banco de Credito del
Peru (BCP), Atlantic Security Holding Corporation (ASHC), El Pacífico-Peruano
Suiza Compañía de Seguros y Reaseguros (PPS) and Grupo
Credito. Credicorp is engaged principally in commercial banking
(including trade finance, corporate finance and leasing services), insurance
(including commercial property, transportation and marine hull, automobile,
life, health and pension fund underwriting insurance) and investment banking
(including brokerage services, asset management, trust, custody and
securitization services, trading and investment). BCP is the
Company's primary subsidiary.
Safe
Harbor for Forward-Looking Statements
This
material includes “forward-looking statements” within the meaning of Section 21E
of the Securities Exchange Act of 1934. All statements other than statements of
historical information provided herein are forward-looking and may contain
information about financial results, economic conditions, trends and known
uncertainties.
The
Company cautions readers that actual results could differ materially from those
expected by the Company, depending on the outcome of certain factors, including,
without limitation: (1) adverse changes in the Peruvian economy with respect to
the rates of inflation, economic growth, currency devaluation, and other
factors, (2) adverse changes in the Peruvian political situation, including,
without limitation, the reversal of market-oriented reforms and economic
recovery measures, or the failure of such measures and reforms to achieve their
goals, and (3) adverse changes in the markets in which the Company operates,
including increased competition, decreased demand for financial services, and
other factors. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof.
The
Company undertakes no obligation to release publicly the result of any revisions
to these forward-looking statements which may be made to reflect events or
circumstances after the date hereof, including, without limitation, changes in
the Company’s business strategy or planned capital expenditures, or to reflect
the occurrence of unanticipated events.
CONSOLIDATED
BALANCE SHEETS
(In
US$ thousand, IFRS)
|
|
As of
|
|
|
Change %
|
|
|
|
Sep 10
|
|
|
Jun 10
|
|
|
Sep 09
|
|
|
QoQ
|
|
|
YoY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and due from banks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
|
961,902 |
|
|
|
859,446 |
|
|
|
754,875 |
|
|
|
11.9 |
% |
|
|
27.4 |
% |
Interest
bearing
|
|
|
2,906,126 |
|
|
|
2,563,266 |
|
|
|
2,732,677 |
|
|
|
13.4 |
% |
|
|
6.3 |
% |
Total
cash and due from banks
|
|
|
3,868,028 |
|
|
|
3,422,712 |
|
|
|
3,487,551 |
|
|
|
13.0 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable
securities, net
|
|
|
73,986 |
|
|
|
60,037 |
|
|
|
89,718 |
|
|
|
23.2 |
% |
|
|
-17.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
13,409,258 |
|
|
|
12,697,597 |
|
|
|
10,675,462 |
|
|
|
5.6 |
% |
|
|
25.6 |
% |
Current
|
|
|
13,195,983 |
|
|
|
12,481,727 |
|
|
|
10,509,564 |
|
|
|
5.7 |
% |
|
|
25.6 |
% |
Past
due
|
|
|
213,275 |
|
|
|
215,871 |
|
|
|
165,898 |
|
|
|
-1.2 |
% |
|
|
28.6 |
% |
Less
- net provisions for possible loan losses
|
|
|
(411,736 |
) |
|
|
(387,078 |
) |
|
|
(318,094 |
) |
|
|
6.4 |
% |
|
|
29.4 |
% |
Loans,
net
|
|
|
12,997,522 |
|
|
|
12,310,519 |
|
|
|
10,357,368 |
|
|
|
5.6 |
% |
|
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
securities available for sale
|
|
|
7,630,494 |
|
|
|
5,889,725 |
|
|
|
4,828,806 |
|
|
|
29.6 |
% |
|
|
58.0 |
% |
Reinsurance
assets
|
|
|
145,945 |
|
|
|
150,364 |
|
|
|
135,688 |
|
|
|
-2.9 |
% |
|
|
7.6 |
% |
Premiums
and other policy holder receivables
|
|
|
122,643 |
|
|
|
105,183 |
|
|
|
109,669 |
|
|
|
16.6 |
% |
|
|
11.8 |
% |
Property,
plant and equipment, net
|
|
|
359,687 |
|
|
|
352,193 |
|
|
|
323,233 |
|
|
|
2.1 |
% |
|
|
11.3 |
% |
Due
from customers on acceptances
|
|
|
57,901 |
|
|
|
63,351 |
|
|
|
63,901 |
|
|
|
-8.6 |
% |
|
|
-9.4 |
% |
Other
assets
|
|
|
1,343,867 |
|
|
|
1,475,428 |
|
|
|
1,376,525 |
|
|
|
-8.9 |
% |
|
|
-2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
26,600,072 |
|
|
|
23,829,513 |
|
|
|
20,772,459 |
|
|
|
11.6 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND NET SHAREHOLDERS¨ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
and Obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
|
4,062,688 |
|
|
|
4,136,614 |
|
|
|
3,462,195 |
|
|
|
-1.8 |
% |
|
|
17.3 |
% |
Interest
bearing
|
|
|
12,589,321 |
|
|
|
11,120,428 |
|
|
|
10,210,091 |
|
|
|
13.2 |
% |
|
|
23.3 |
% |
Total
deposits and Obligations
|
|
|
16,652,009 |
|
|
|
15,257,042 |
|
|
|
13,672,287 |
|
|
|
9.1 |
% |
|
|
21.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
to banks and correspondents
|
|
|
1,719,880 |
|
|
|
1,605,168 |
|
|
|
1,713,177 |
|
|
|
7.1 |
% |
|
|
0.4 |
% |
Acceptances
outstanding
|
|
|
57,901 |
|
|
|
63,351 |
|
|
|
63,901 |
|
|
|
-8.6 |
% |
|
|
-9.4 |
% |
Reserves
for property and casualty claims
|
|
|
962,422 |
|
|
|
929,135 |
|
|
|
874,243 |
|
|
|
3.6 |
% |
|
|
10.1 |
% |
Reserve
for unearned premiums
|
|
|
163,362 |
|
|
|
150,045 |
|
|
|
140,907 |
|
|
|
8.9 |
% |
|
|
15.9 |
% |
Reinsurance
payable
|
|
|
65,112 |
|
|
|
53,566 |
|
|
|
38,832 |
|
|
|
21.6 |
% |
|
|
67.7 |
% |
Bonds
and subordinated debt
|
|
|
3,067,395 |
|
|
|
2,292,080 |
|
|
|
915,091 |
|
|
|
33.8 |
% |
|
|
235.2 |
% |
Other
liabilities
|
|
|
992,131 |
|
|
|
850,999 |
|
|
|
1,052,250 |
|
|
|
16.6 |
% |
|
|
-5.7 |
% |
Minority
interest
|
|
|
230,546 |
|
|
|
195,061 |
|
|
|
171,670 |
|
|
|
18.2 |
% |
|
|
34.3 |
% |
Total
liabilities
|
|
|
23,910,758 |
|
|
|
21,396,447 |
|
|
|
18,642,357 |
|
|
|
11.8 |
% |
|
|
28.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
stock
|
|
|
471,912 |
|
|
|
471,912 |
|
|
|
471,912 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Treasury
stock
|
|
|
(74,712 |
) |
|
|
(74,712 |
) |
|
|
(74,242 |
) |
|
|
0.0 |
% |
|
|
0.6 |
% |
Capital
surplus
|
|
|
119,637 |
|
|
|
119,637 |
|
|
|
130,341 |
|
|
|
0.0 |
% |
|
|
-8.2 |
% |
Reserves
|
|
|
1,385,098 |
|
|
|
1,385,098 |
|
|
|
1,053,494 |
|
|
|
0.0 |
% |
|
|
31.5 |
% |
Unrealized
gains
|
|
|
327,666 |
|
|
|
220,480 |
|
|
|
179,179 |
|
|
|
48.6 |
% |
|
|
82.9 |
% |
Retained
earnings
|
|
|
459,713 |
|
|
|
310,649 |
|
|
|
369,418 |
|
|
|
48.0 |
% |
|
|
24.4 |
% |
Net
shareholders' equity
|
|
|
2,689,315 |
|
|
|
2,433,065 |
|
|
|
2,130,102 |
|
|
|
10.5 |
% |
|
|
26.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and net shareholders' equity
|
|
|
26,600,072 |
|
|
|
23,829,513 |
|
|
|
20,772,459 |
|
|
|
11.6 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
credits
|
|
|
9,222,042 |
|
|
|
2,984,977 |
|
|
|
7,752,352 |
|
|
|
208.9 |
% |
|
|
19.0 |
% |
CREDICORP
LTD. AND SUBSIDIARIES
QUARTERLY
INCOME STATEMENT
(In
US$ thousand, IFRS)
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Interest
income and expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
|
374,572 |
|
|
|
344,100 |
|
|
|
313,956 |
|
|
|
8.9 |
% |
|
|
19.3 |
% |
|
|
1,051,410 |
|
|
|
982,895 |
|
|
|
7.0 |
% |
Interest
expense
|
|
|
(103,134 |
) |
|
|
(85,666 |
) |
|
|
(99,409 |
) |
|
|
20.4 |
% |
|
|
3.7 |
% |
|
|
(275,953 |
) |
|
|
(328,940 |
) |
|
|
-16.1 |
% |
Net
interest income
|
|
|
271,438 |
|
|
|
258,434 |
|
|
|
214,547 |
|
|
|
5.0 |
% |
|
|
26.5 |
% |
|
|
775,457 |
|
|
|
653,955 |
|
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
provisions for loan losses
|
|
|
(52,303 |
) |
|
|
(30,895 |
) |
|
|
(38,216 |
) |
|
|
69.3 |
% |
|
|
36.9 |
% |
|
|
(126,379 |
) |
|
|
(119,348 |
) |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
financial income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
income
|
|
|
134,813 |
|
|
|
128,506 |
|
|
|
110,460 |
|
|
|
4.9 |
% |
|
|
22.0 |
% |
|
|
388,749 |
|
|
|
310,656 |
|
|
|
25.1 |
% |
Net
gain on foreign exchange transactions
|
|
|
26,211 |
|
|
|
23,612 |
|
|
|
29,957 |
|
|
|
11.0 |
% |
|
|
-12.5 |
% |
|
|
75,262 |
|
|
|
69,133 |
|
|
|
8.9 |
% |
Net
gain on sales of securities
|
|
|
27,894 |
|
|
|
37,803 |
|
|
|
16,276 |
|
|
|
-26.2 |
% |
|
|
71.4 |
% |
|
|
72,719 |
|
|
|
100,150 |
|
|
|
-27.4 |
% |
Other
|
|
|
5,069 |
|
|
|
6,633 |
|
|
|
5,903 |
|
|
|
-23.6 |
% |
|
|
-14.1 |
% |
|
|
21,619 |
|
|
|
26,802 |
|
|
|
-19.3 |
% |
Total
non financial income, net
|
|
|
193,987 |
|
|
|
196,554 |
|
|
|
162,596 |
|
|
|
-1.3 |
% |
|
|
19.3 |
% |
|
|
558,349 |
|
|
|
506,741 |
|
|
|
10.2 |
% |
Insurance
premiums and claims
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
premiums earned
|
|
|
120,702 |
|
|
|
121,575 |
|
|
|
108,965 |
|
|
|
-0.7 |
% |
|
|
10.8 |
% |
|
|
353,307 |
|
|
|
309,575 |
|
|
|
14.1 |
% |
Net
claims incurred
|
|
|
(10,690 |
) |
|
|
(13,950 |
) |
|
|
(13,522 |
) |
|
|
-23.4 |
% |
|
|
-20.9 |
% |
|
|
(38,264 |
) |
|
|
(51,281 |
) |
|
|
-25.4 |
% |
Increase
in cost for life and health policies
|
|
|
(65,793 |
) |
|
|
(62,108 |
) |
|
|
(59,425 |
) |
|
|
5.9 |
% |
|
|
10.7 |
% |
|
|
(192,820 |
) |
|
|
(165,099 |
) |
|
|
16.8 |
% |
Total
other operating income, net
|
|
|
44,220 |
|
|
|
45,517 |
|
|
|
36,018 |
|
|
|
-2.9 |
% |
|
|
22.8 |
% |
|
|
122,224 |
|
|
|
93,195 |
|
|
|
31.1 |
% |
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employees benefits
|
|
|
(115,235 |
) |
|
|
(109,137 |
) |
|
|
(95,765 |
) |
|
|
5.6 |
% |
|
|
20.3 |
% |
|
|
(339,567 |
) |
|
|
(284,062 |
) |
|
|
19.5 |
% |
Administrative,
general and tax expenses
|
|
|
(81,463 |
) |
|
|
(80,465 |
) |
|
|
(70,436 |
) |
|
|
1.2 |
% |
|
|
15.7 |
% |
|
|
(239,928 |
) |
|
|
(219,104 |
) |
|
|
9.5 |
% |
Depreciation
and amortization
|
|
|
(21,469 |
) |
|
|
(20,889 |
) |
|
|
(18,343 |
) |
|
|
2.8 |
% |
|
|
17.0 |
% |
|
|
(62,865 |
) |
|
|
(53,332 |
) |
|
|
17.9 |
% |
Merger
expenses
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
- |
|
|
|
- |
|
|
|
|
|
Other
|
|
|
(25,115 |
) |
|
|
(24,830 |
) |
|
|
(27,025 |
) |
|
|
1.1 |
% |
|
|
-7.1 |
% |
|
|
(73,939 |
) |
|
|
(82,078 |
) |
|
|
-9.9 |
% |
Total
operating expenses
|
|
|
(243,281 |
) |
|
|
(235,321 |
) |
|
|
(211,568 |
) |
|
|
3.4 |
% |
|
|
15.0 |
% |
|
|
(716,300 |
) |
|
|
(638,575 |
) |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
214,060 |
|
|
|
234,289 |
|
|
|
163,377 |
|
|
|
-8.6 |
% |
|
|
31.0 |
% |
|
|
613,350 |
|
|
|
495,968 |
|
|
|
23.7 |
% |
Translation
result
|
|
|
14,467 |
|
|
|
4,675 |
|
|
|
12,046 |
|
|
|
209.4 |
% |
|
|
20.1 |
% |
|
|
31,202 |
|
|
|
11,296 |
|
|
|
176.2 |
% |
Workers’
profit sharing
|
|
|
(8,039 |
) |
|
|
(8,620 |
) |
|
|
(5,747 |
) |
|
|
-6.7 |
% |
|
|
39.9 |
% |
|
|
(22,132 |
) |
|
|
(16,678 |
) |
|
|
32.7 |
% |
Income
taxes
|
|
|
(54,902 |
) |
|
|
(56,991 |
) |
|
|
(39,538 |
) |
|
|
-3.7 |
% |
|
|
38.9 |
% |
|
|
(151,322 |
) |
|
|
(119,123 |
) |
|
|
27.0 |
% |
Net
income
|
|
|
165,586 |
|
|
|
173,353 |
|
|
|
130,139 |
|
|
|
-4.5 |
% |
|
|
27.2 |
% |
|
|
471,098 |
|
|
|
371,463 |
|
|
|
26.8 |
% |
Minority
interest
|
|
|
9,360 |
|
|
|
11,429 |
|
|
|
8,432 |
|
|
|
-18.1 |
% |
|
|
11.0 |
% |
|
|
29,078 |
|
|
|
23,976 |
|
|
|
21.3 |
% |
Net
income attributed to Credicorp
|
|
|
156,226 |
|
|
|
161,924 |
|
|
|
121,707 |
|
|
|
-3.5 |
% |
|
|
28.4 |
% |
|
|
442,020 |
|
|
|
347,487 |
|
|
|
27.2 |
% |
CREDICORP
LTD. AND SUBSIDIARIES
SELECTED
FINANCIAL INDICATORS
|
|
Quarter
|
|
|
Year to date
|
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
Sep 10
|
|
|
Sep 09
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share (US$ per share)(1)
|
|
|
1.96 |
|
|
|
2.03 |
|
|
|
1.53 |
|
|
|
5.54 |
|
|
|
4.36 |
|
Net
interest margin on interest earning assets (2)
|
|
|
4.85 |
% |
|
|
4.99 |
% |
|
|
4.72 |
% |
|
|
5.05 |
% |
|
|
4.78 |
% |
Return
on average total assets (2)(3)
|
|
|
2.5 |
% |
|
|
2.7 |
% |
|
|
2.3 |
% |
|
|
2.5 |
% |
|
|
2.2 |
% |
Return
on average shareholders' equity (2)(3)(6)
|
|
|
24.4 |
% |
|
|
27.5 |
% |
|
|
24.0 |
% |
|
|
24.2 |
% |
|
|
24.8 |
% |
No.
of outstanding shares (millions)(4)
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality
of loan portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past
due loans as a percentage of total loans
|
|
|
1.59 |
% |
|
|
1.70 |
% |
|
|
1.55 |
% |
|
|
1.59 |
% |
|
|
1.55 |
% |
Reserves
for loan losses as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total
past due loans
|
|
|
193.1 |
% |
|
|
179.3 |
% |
|
|
191.7 |
% |
|
|
193.1 |
% |
|
|
191.7 |
% |
Reserves
for loan losses as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total
loans
|
|
|
3.1 |
% |
|
|
3.0 |
% |
|
|
3.0 |
% |
|
|
3.1 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oper.
expenses as a percent. of total income (5)
|
|
|
39.4 |
% |
|
|
39.6 |
% |
|
|
39.8 |
% |
|
|
40.3 |
% |
|
|
41.4 |
% |
Oper.
expenses as a percent. of av. tot. assets(2)(3)(5)
|
|
|
3.5 |
% |
|
|
3.6 |
% |
|
|
3.5 |
% |
|
|
3.6 |
% |
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances (US$ million) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
earning assets
|
|
|
22,400.67 |
|
|
|
20,720.69 |
|
|
|
18,172.09 |
|
|
|
20,468.68 |
|
|
|
18,245.46 |
|
Total
assets
|
|
|
25,214.79 |
|
|
|
23,655.49 |
|
|
|
20,835.65 |
|
|
|
23,984.79 |
|
|
|
20,891.12 |
|
Net
shareholder´s equity
|
|
|
2,561.19 |
|
|
|
2,358.81 |
|
|
|
2,031.43 |
|
|
|
2,430.95 |
|
|
|
1,855.05 |
|
(1)
Based on Net Income attributed to BAP. Number of shares outstanding of 79.8
million in all periods.
(2)
Ratios are annualized.
(3)
Averages are determined as the average of period-beginning and period-ending
balances.
(4)
Net of treasury shares. The total number of shares was of 94.38
million.
(5)
Total income includes net interest income, fee income, net gain on foreign
exchange transactions and net premiums earned. Operating
expenses do not include other expenses.
(6)
ROAE (jan-sep): (Acumulated net income / average monthly equity (from dec. to
date))/(number of months)*12
BANCO
DE CREDITO DEL PERU AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
(In
US$ thousand, IFRS)
|
|
As of
|
|
|
Change %
|
|
|
|
Sep 10
|
|
|
Jun 10
|
|
|
Sep 09
|
|
|
QoQ
|
|
|
YoY
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and due from banks
|
|
|
3,720,491 |
|
|
|
3,342,067 |
|
|
|
3,368,733 |
|
|
|
11.3 |
% |
|
|
10.4 |
% |
Cash
and BCRP
|
|
|
3,196,863 |
|
|
|
2,931,107 |
|
|
|
2,757,898 |
|
|
|
9.1 |
% |
|
|
15.9 |
% |
Deposits
in other Banks
|
|
|
523,098 |
|
|
|
409,977 |
|
|
|
540,877 |
|
|
|
27.6 |
% |
|
|
-3.3 |
% |
Interbanks
|
|
|
- |
|
|
|
- |
|
|
|
68,132 |
|
|
|
0.0 |
% |
|
|
-100.0 |
% |
Accrued
interest on cash and due from banks
|
|
|
530 |
|
|
|
983 |
|
|
|
1,826 |
|
|
|
-46.1 |
% |
|
|
-71.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable
securities, net
|
|
|
73,986 |
|
|
|
60,037 |
|
|
|
89,718 |
|
|
|
23.2 |
% |
|
|
-17.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
13,326,601 |
|
|
|
12,611,066 |
|
|
|
10,572,063 |
|
|
|
5.7 |
% |
|
|
26.1 |
% |
Current
|
|
|
13,114,103 |
|
|
|
12,395,974 |
|
|
|
10,406,954 |
|
|
|
5.8 |
% |
|
|
26.0 |
% |
Past
Due
|
|
|
212,498 |
|
|
|
215,092 |
|
|
|
165,109 |
|
|
|
-1.2 |
% |
|
|
28.7 |
% |
Less
- net provisions for possible loan losses
|
|
|
(410,814 |
) |
|
|
(386,148 |
) |
|
|
(316,718 |
) |
|
|
6.4 |
% |
|
|
29.7 |
% |
Loans,
net
|
|
|
12,915,787 |
|
|
|
12,224,918 |
|
|
|
10,255,345 |
|
|
|
5.7 |
% |
|
|
25.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities available for sale
|
|
|
5,336,436 |
|
|
|
3,707,331 |
|
|
|
2,793,015 |
|
|
|
43.9 |
% |
|
|
91.1 |
% |
Property,
plant and equipment, net
|
|
|
294,873 |
|
|
|
287,204 |
|
|
|
257,201 |
|
|
|
2.7 |
% |
|
|
14.6 |
% |
Due
from customers acceptances
|
|
|
57,901 |
|
|
|
63,351 |
|
|
|
63,901 |
|
|
|
-8.6 |
% |
|
|
-9.4 |
% |
Other
assets
|
|
|
1,074,535 |
|
|
|
1,184,152 |
|
|
|
1,052,317 |
|
|
|
-9.3 |
% |
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
23,474,009 |
|
|
|
20,869,060 |
|
|
|
17,880,230 |
|
|
|
12.5 |
% |
|
|
31.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND NET SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
and obligations
|
|
|
15,642,366 |
|
|
|
14,209,963 |
|
|
|
13,946,714 |
|
|
|
10.1 |
% |
|
|
12.2 |
% |
Demand
deposits
|
|
|
5,257,055 |
|
|
|
5,059,051 |
|
|
|
4,298,914 |
|
|
|
3.9 |
% |
|
|
22.3 |
% |
Saving
deposits
|
|
|
3,953,997 |
|
|
|
3,702,869 |
|
|
|
3,387,339 |
|
|
|
6.8 |
% |
|
|
16.7 |
% |
Time
deposits
|
|
|
5,267,355 |
|
|
|
4,242,721 |
|
|
|
5,179,047 |
|
|
|
24.2 |
% |
|
|
1.7 |
% |
Severance
indemnity deposits (CTS)
|
|
|
1,127,933 |
|
|
|
1,176,925 |
|
|
|
1,012,534 |
|
|
|
-4.2 |
% |
|
|
11.4 |
% |
Interest
payable
|
|
|
36,026 |
|
|
|
28,397 |
|
|
|
68,880 |
|
|
|
26.9 |
% |
|
|
-47.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
to banks and correspondents
|
|
|
3,181,057 |
|
|
|
3,110,545 |
|
|
|
603,152 |
|
|
|
2.3 |
% |
|
|
427.4 |
% |
Bonds
and subordinated debt
|
|
|
2,004,124 |
|
|
|
1,202,434 |
|
|
|
941,027 |
|
|
|
66.7 |
% |
|
|
113.0 |
% |
Acceptances
outstanding
|
|
|
57,901 |
|
|
|
63,351 |
|
|
|
63,901 |
|
|
|
-8.6 |
% |
|
|
-9.4 |
% |
Other
liabilities
|
|
|
720,209 |
|
|
|
599,269 |
|
|
|
765,086 |
|
|
|
20.2 |
% |
|
|
-5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
21,605,657 |
|
|
|
19,185,562 |
|
|
|
16,319,880 |
|
|
|
12.6 |
% |
|
|
32.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholders' equity
|
|
|
1,864,471 |
|
|
|
1,679,754 |
|
|
|
1,556,224 |
|
|
|
11.0 |
% |
|
|
19.8 |
% |
Capital
stock
|
|
|
783,213 |
|
|
|
783,213 |
|
|
|
667,250 |
|
|
|
0.0 |
% |
|
|
17.4 |
% |
Reserves
|
|
|
388,309 |
|
|
|
388,309 |
|
|
|
388,275 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Unrealized
Gains and Losses
|
|
|
131,056 |
|
|
|
84,959 |
|
|
|
94,797 |
|
|
|
54.3 |
% |
|
|
38.2 |
% |
Retained
Earnings
|
|
|
187,143 |
|
|
|
187,143 |
|
|
|
115,922 |
|
|
|
0.0 |
% |
|
|
61.4 |
% |
Income
for the year
|
|
|
374,750 |
|
|
|
236,130 |
|
|
|
289,980 |
|
|
|
58.7 |
% |
|
|
29.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interest
|
|
|
3,881 |
|
|
|
3,744 |
|
|
|
4,126 |
|
|
|
3.7 |
% |
|
|
-5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and net shareholders' equity
|
|
|
23,474,009 |
|
|
|
20,869,060 |
|
|
|
17,880,230 |
|
|
|
12.5 |
% |
|
|
31.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
credits
|
|
|
9,210,482 |
|
|
|
8,998,223 |
|
|
|
7,713,584 |
|
|
|
2.4 |
% |
|
|
19.4 |
% |
BANCO
DE CREDITO DEL PERU AND SUBSIDIARIES
QUARTERLY
INCOME STATEMENT
(In
US$ thousand, IFRS)
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
Sep 10 / Sep 09
|
|
Interest
income and expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
|
345,937 |
|
|
|
311,548 |
|
|
|
292,292 |
|
|
|
11.0 |
% |
|
|
18.4 |
% |
|
|
963,407 |
|
|
|
909,494 |
|
|
|
5.9 |
% |
Interest
expense
|
|
|
(103,663 |
) |
|
|
(82,896 |
) |
|
|
(95,030 |
) |
|
|
25.1 |
% |
|
|
9.1 |
% |
|
|
(273,306 |
) |
|
|
(316,611 |
) |
|
|
-13.7 |
% |
Net
interest and dividend income
|
|
|
242,274 |
|
|
|
228,652 |
|
|
|
197,262 |
|
|
|
6.0 |
% |
|
|
22.8 |
% |
|
|
690,101 |
|
|
|
592,883 |
|
|
|
16.4 |
% |
Net
provision for loan losses
|
|
|
(52,614 |
) |
|
|
(31,183 |
) |
|
|
(38,917 |
) |
|
|
68.7 |
% |
|
|
35.2 |
% |
|
|
(127,242 |
) |
|
|
(120,171 |
) |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
financial income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
services commissions
|
|
|
120,839 |
|
|
|
113,577 |
|
|
|
93,348 |
|
|
|
6.4 |
% |
|
|
29.5 |
% |
|
|
341,639 |
|
|
|
258,521 |
|
|
|
32.2 |
% |
Net
gain on foreign exchange transactions
|
|
|
26,354 |
|
|
|
23,595 |
|
|
|
25,559 |
|
|
|
11.7 |
% |
|
|
3.1 |
% |
|
|
75,452 |
|
|
|
65,587 |
|
|
|
15.0 |
% |
Net
gain on sales of securities
|
|
|
18,987 |
|
|
|
29,727 |
|
|
|
9,890 |
|
|
|
-36.1 |
% |
|
|
92.0 |
% |
|
|
48,875 |
|
|
|
92,164 |
|
|
|
-47.0 |
% |
Other
|
|
|
1,168 |
|
|
|
2,642 |
|
|
|
892 |
|
|
|
-55.8 |
% |
|
|
30.9 |
% |
|
|
8,764 |
|
|
|
12,251 |
|
|
|
-28.5 |
% |
Total
non financial income,net
|
|
|
167,348 |
|
|
|
169,541 |
|
|
|
129,689 |
|
|
|
-1.3 |
% |
|
|
29.0 |
% |
|
|
474,730 |
|
|
|
428,523 |
|
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employees benefits
|
|
|
(95,404 |
) |
|
|
(90,961 |
) |
|
|
(80,318 |
) |
|
|
4.9 |
% |
|
|
18.8 |
% |
|
|
(284,810 |
) |
|
|
(238,983 |
) |
|
|
19.2 |
% |
Administrative
expenses
|
|
|
(67,549 |
) |
|
|
(67,866 |
) |
|
|
(59,269 |
) |
|
|
-0.5 |
% |
|
|
14.0 |
% |
|
|
(201,200 |
) |
|
|
(186,741 |
) |
|
|
7.7 |
% |
Depreciation
and amortization
|
|
|
(17,392 |
) |
|
|
(16,837 |
) |
|
|
(14,712 |
) |
|
|
3.3 |
% |
|
|
18.2 |
% |
|
|
(50,652 |
) |
|
|
(42,556 |
) |
|
|
19.0 |
% |
Other
|
|
|
(4,406 |
) |
|
|
(7,516 |
) |
|
|
(6,794 |
) |
|
|
-41.4 |
% |
|
|
-35.1 |
% |
|
|
(16,602 |
) |
|
|
(27,493 |
) |
|
|
-39.6 |
% |
Total
operating expenses
|
|
|
(184,751 |
) |
|
|
(183,180 |
) |
|
|
(161,093 |
) |
|
|
0.9 |
% |
|
|
14.7 |
% |
|
|
(553,264 |
) |
|
|
(495,773 |
) |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
172,257 |
|
|
|
183,830 |
|
|
|
126,941 |
|
|
|
-6.3 |
% |
|
|
35.7 |
% |
|
|
484,325 |
|
|
|
405,462 |
|
|
|
19.5 |
% |
Translation
result
|
|
|
12,896 |
|
|
|
4,972 |
|
|
|
10,204 |
|
|
|
159.4 |
% |
|
|
26.4 |
% |
|
|
29,548 |
|
|
|
(4,955 |
) |
|
|
696.3 |
% |
Workers’
profit sharing
|
|
|
(6,699 |
) |
|
|
(7,459 |
) |
|
|
(4,842 |
) |
|
|
-10.2 |
% |
|
|
38.4 |
% |
|
|
(18,998 |
) |
|
|
(14,422 |
) |
|
|
31.7 |
% |
Income
taxes
|
|
|
(39,683 |
) |
|
|
(46,995 |
) |
|
|
(30,558 |
) |
|
|
-15.6 |
% |
|
|
29.9 |
% |
|
|
(119,584 |
) |
|
|
(95,255 |
) |
|
|
25.5 |
% |
Minority
interest
|
|
|
(151 |
) |
|
|
(127 |
) |
|
|
(289 |
) |
|
|
18.9 |
% |
|
|
-47.8 |
% |
|
|
(541 |
) |
|
|
(850 |
) |
|
|
-36.4 |
% |
Net
income
|
|
|
138,620 |
|
|
|
134,221 |
|
|
|
101,456 |
|
|
|
3.3 |
% |
|
|
36.6 |
% |
|
|
374,750 |
|
|
|
289,980 |
|
|
|
29.2 |
% |
BANCO
DE CREDITO DEL PERU AND SUBSIDIARIES
SELECTED
FINANCIAL INDICATORS
|
|
Quarter
|
|
|
Year to date
|
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
Sep 10
|
|
|
Sep 09
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share (US$ per share)(1)
|
|
|
0.062 |
|
|
|
0.060 |
|
|
|
0.046 |
|
|
|
0.168 |
|
|
|
0.130 |
|
Net
interest margin on interest earning assets (2)
|
|
|
4.81 |
% |
|
|
4.91 |
% |
|
|
4.87 |
% |
|
|
4.86 |
% |
|
|
4.79 |
% |
Return
on average total assets (2)(3)
|
|
|
2.5 |
% |
|
|
2.6 |
% |
|
|
2.3 |
% |
|
|
2.3 |
% |
|
|
2.1 |
% |
Return
on average shareholders' equity (2)(3)
|
|
|
31.3 |
% |
|
|
33.0 |
% |
|
|
27.1 |
% |
|
|
29.3 |
% |
|
|
26.9 |
% |
No.
of outstanding shares (millions)
|
|
|
2,228.29 |
|
|
|
2,228.29 |
|
|
|
2,228.29 |
|
|
|
2,228.29 |
|
|
|
2,228.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality
of loan portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past
due loans as a percentage of total loans
|
|
|
1.59 |
% |
|
|
1.71 |
% |
|
|
1.56 |
% |
|
|
1.59 |
% |
|
|
1.56 |
% |
Reserves
for loan losses as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total
past due loans
|
|
|
193.3 |
% |
|
|
179.5 |
% |
|
|
191.8 |
% |
|
|
193.3 |
% |
|
|
191.8 |
% |
Reserves
for loan losses as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
total
loans
|
|
|
3.1 |
% |
|
|
3.1 |
% |
|
|
3.0 |
% |
|
|
3.1 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oper.
expenses as a percent. of total income (4)
|
|
|
46.3 |
% |
|
|
48.0 |
% |
|
|
48.8 |
% |
|
|
48.5 |
% |
|
|
51.1 |
% |
Oper.
expenses as a percent. of av. tot. assets(2)(3)(4)
|
|
|
3.3 |
% |
|
|
3.4 |
% |
|
|
3.4 |
% |
|
|
3.3 |
% |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
adequacy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Regulatory Capital (US$ million)
|
|
|
1,984.8 |
|
|
|
1,969.2 |
|
|
|
1,739.0 |
|
|
|
|
|
|
|
|
|
Tier I
capital (US$ million)
|
|
|
1,561.0 |
|
|
|
1,514.9 |
|
|
|
1,289.4 |
|
|
|
|
|
|
|
|
|
BIS
ratio (5)
|
|
|
13.9 |
% |
|
|
13.6 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances (US$ million) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
earning assets
|
|
|
20,147.4 |
|
|
|
18,643.6 |
|
|
|
16,203.5 |
|
|
|
18,942.9 |
|
|
|
16,497.2 |
|
Total
Assets
|
|
|
22,171.5 |
|
|
|
20,761.4 |
|
|
|
18,033.8 |
|
|
|
21,665.6 |
|
|
|
18,197.2 |
|
Net
shareholders' equity
|
|
|
1,772.1 |
|
|
|
1,629.1 |
|
|
|
1,499.5 |
|
|
|
1,707.6 |
|
|
|
1,437.0 |
|
(1)
Shares outstanding of 2,228 million is used for all periods since shares have
been issued only for capitalization of profits and inflation
adjustment.
(2)
Ratios are annualized.
(3)
Averages are determined as the average of period-beginning and period-ending
balances.
(4)
Total income includes net interest income, fee income and net gain on foreign
exchange transactions.
Operating
expense includes personnel expenses, administrative expenses and depreciation
and amortization.
(5)
Regulatory Capital / risk-weighted assets. Risk weighted assets
include market risk and operation risk
EL
PACIFICO - PERUANO SUIZA and SUBSIDIARIES
(In
US$ thousand)
|
|
Balance to and for the period of
|
|
|
|
|
|
|
|
|
|
Three month ending
|
|
|
Year to date
|
|
|
Change %
|
|
|
|
30 Sep 10
|
|
|
30 Jun 10
|
|
|
30 Sep 09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 10 /
|
|
|
|
3Q10
|
|
|
2Q10
|
|
|
3Q09
|
|
|
Sep 10
|
|
|
Sep 09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Sep 09
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Premiums
|
|
|
202,871 |
|
|
|
163,372 |
|
|
|
148,718 |
|
|
|
521,869 |
|
|
|
436,128 |
|
|
|
24.2 |
% |
|
|
36.4 |
% |
|
|
19.7 |
% |
Ceded
Premiums
|
|
|
37,986 |
|
|
|
17,748 |
|
|
|
19,637 |
|
|
|
81,002 |
|
|
|
66,775 |
|
|
|
114.0 |
% |
|
|
93.4 |
% |
|
|
21.3 |
% |
Unearned
premium reserves
|
|
|
40,675 |
|
|
|
20,204 |
|
|
|
16,341 |
|
|
|
76,040 |
|
|
|
48,985 |
|
|
|
101.3 |
% |
|
|
148.9 |
% |
|
|
55.2 |
% |
Net
earned premiums
|
|
|
124,210 |
|
|
|
125,420 |
|
|
|
112,740 |
|
|
|
364,827 |
|
|
|
320,368 |
|
|
|
-1.0 |
% |
|
|
10.2 |
% |
|
|
13.9 |
% |
Direct
claims
|
|
|
79,716 |
|
|
|
76,990 |
|
|
|
57,091 |
|
|
|
251,550 |
|
|
|
243,485 |
|
|
|
3.5 |
% |
|
|
39.6 |
% |
|
|
3.3 |
% |
Ceded
claims
|
|
|
3,233 |
|
|
|
932 |
|
|
|
(15,856 |
) |
|
|
20,467 |
|
|
|
27,106 |
|
|
|
246.8 |
% |
|
|
120.4 |
% |
|
|
-24.5 |
% |
Net
claims
|
|
|
76,483 |
|
|
|
76,058 |
|
|
|
72,947 |
|
|
|
231,083 |
|
|
|
216,380 |
|
|
|
0.6 |
% |
|
|
4.8 |
% |
|
|
6.8 |
% |
Direct
commissions
|
|
|
21,709 |
|
|
|
19,901 |
|
|
|
17,029 |
|
|
|
59,757 |
|
|
|
51,169 |
|
|
|
9.1 |
% |
|
|
27.5 |
% |
|
|
16.8 |
% |
Commissions
received
|
|
|
3,212 |
|
|
|
2,766 |
|
|
|
2,420 |
|
|
|
8,397 |
|
|
|
7,170 |
|
|
|
16.1 |
% |
|
|
32.7 |
% |
|
|
17.1 |
% |
Net
commissions
|
|
|
18,497 |
|
|
|
17,135 |
|
|
|
14,609 |
|
|
|
51,359 |
|
|
|
43,999 |
|
|
|
7.9 |
% |
|
|
26.6 |
% |
|
|
16.7 |
% |
Technical
expenses
|
|
|
7,556 |
|
|
|
6,437 |
|
|
|
6,099 |
|
|
|
20,658 |
|
|
|
17,509 |
|
|
|
17.4 |
% |
|
|
23.9 |
% |
|
|
18.0 |
% |
Technical
resolves
|
|
|
2,531 |
|
|
|
1,962 |
|
|
|
3,549 |
|
|
|
7,397 |
|
|
|
8,453 |
|
|
|
29.0 |
% |
|
|
-28.7 |
% |
|
|
-12.5 |
% |
Net
technical expenses
|
|
|
5,025 |
|
|
|
4,475 |
|
|
|
2,550 |
|
|
|
13,261 |
|
|
|
9,056 |
|
|
|
12.3 |
% |
|
|
97.1 |
% |
|
|
46.4 |
% |
Underwriting
results
|
|
|
24,205 |
|
|
|
27,753 |
|
|
|
22,634 |
|
|
|
69,124 |
|
|
|
50,934 |
|
|
|
-12.8 |
% |
|
|
6.9 |
% |
|
|
35.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
income
|
|
|
17,766 |
|
|
|
17,690 |
|
|
|
15,774 |
|
|
|
53,254 |
|
|
|
45,428 |
|
|
|
0.4 |
% |
|
|
12.6 |
% |
|
|
17.2 |
% |
Gains
on sale of real state and secutirities
|
|
|
5,768 |
|
|
|
3,372 |
|
|
|
4,122 |
|
|
|
12,223 |
|
|
|
9,910 |
|
|
|
71.0 |
% |
|
|
39.9 |
% |
|
|
23.3 |
% |
Net
property and rental income
|
|
|
1,117 |
|
|
|
1,150 |
|
|
|
1,136 |
|
|
|
3,453 |
|
|
|
2,879 |
|
|
|
-2.8 |
% |
|
|
-1.6 |
% |
|
|
19.9 |
% |
(-)
Financial expenses
|
|
|
(621 |
) |
|
|
1,295 |
|
|
|
412 |
|
|
|
1,148 |
|
|
|
1,524 |
|
|
|
-147.9 |
% |
|
|
-250.7 |
% |
|
|
-24.7 |
% |
Financial
income, net
|
|
|
25,272 |
|
|
|
20,917 |
|
|
|
20,620 |
|
|
|
67,781 |
|
|
|
56,693 |
|
|
|
20.8 |
% |
|
|
22.6 |
% |
|
|
19.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and benefits
|
|
|
14,768 |
|
|
|
13,995 |
|
|
|
11,752 |
|
|
|
41,774 |
|
|
|
32,454 |
|
|
|
5.5 |
% |
|
|
25.7 |
% |
|
|
28.7 |
% |
Administrative
expenses
|
|
|
14,593 |
|
|
|
11,126 |
|
|
|
11,117 |
|
|
|
35,639 |
|
|
|
27,649 |
|
|
|
31.2 |
% |
|
|
31.3 |
% |
|
|
28.9 |
% |
Third
party services
|
|
|
6,841 |
|
|
|
5,357 |
|
|
|
4,531 |
|
|
|
17,017 |
|
|
|
12,767 |
|
|
|
27.7 |
% |
|
|
51.0 |
% |
|
|
33.3 |
% |
Management
expenses
|
|
|
2,544 |
|
|
|
2,285 |
|
|
|
1,602 |
|
|
|
7,032 |
|
|
|
5,111 |
|
|
|
11.3 |
% |
|
|
58.7 |
% |
|
|
37.6 |
% |
Provisions
|
|
|
1,796 |
|
|
|
1,609 |
|
|
|
1,751 |
|
|
|
4,900 |
|
|
|
4,259 |
|
|
|
11.6 |
% |
|
|
2.6 |
% |
|
|
15.0 |
% |
Taxes
|
|
|
1,384 |
|
|
|
1,120 |
|
|
|
1,382 |
|
|
|
3,960 |
|
|
|
3,744 |
|
|
|
23.6 |
% |
|
|
0.2 |
% |
|
|
5.8 |
% |
Other
expenses
|
|
|
2,029 |
|
|
|
755 |
|
|
|
1,851 |
|
|
|
2,730 |
|
|
|
1,767 |
|
|
|
168.7 |
% |
|
|
9.6 |
% |
|
|
54.5 |
% |
General
expenses
|
|
|
29,360 |
|
|
|
25,121 |
|
|
|
22,869 |
|
|
|
77,413 |
|
|
|
60,103 |
|
|
|
16.9 |
% |
|
|
28.4 |
% |
|
|
28.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
20 |
|
|
|
343 |
|
|
|
(92 |
) |
|
|
574 |
|
|
|
832 |
|
|
|
-94.3 |
% |
|
|
121.3 |
% |
|
|
-31.1 |
% |
Traslations
results
|
|
|
1,516 |
|
|
|
529 |
|
|
|
1,879 |
|
|
|
3,049 |
|
|
|
4,092 |
|
|
|
186.8 |
% |
|
|
-19.3 |
% |
|
|
-25.5 |
% |
Employee
participation and income tax
|
|
|
5,267 |
|
|
|
3,959 |
|
|
|
6,282 |
|
|
|
11,225 |
|
|
|
11,025 |
|
|
|
33.0 |
% |
|
|
-16.2 |
% |
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before minority interest
|
|
|
16,386 |
|
|
|
20,461 |
|
|
|
15,890 |
|
|
|
51,890 |
|
|
|
41,423 |
|
|
|
-19.9 |
% |
|
|
3.1 |
% |
|
|
25.3 |
% |
Minority
interest
|
|
|
2,645 |
|
|
|
3,985 |
|
|
|
2,613 |
|
|
|
9,579 |
|
|
|
8,514 |
|
|
|
-33.6 |
% |
|
|
1.2 |
% |
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
13,741 |
|
|
|
16,475 |
|
|
|
13,277 |
|
|
|
42,311 |
|
|
|
32,909 |
|
|
|
-16.6 |
% |
|
|
3.5 |
% |
|
|
28.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
(end of period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
1,739,047 |
|
|
|
1,591,564 |
|
|
|
1,476,861 |
|
|
|
1,739,047 |
|
|
|
1,476,861 |
|
|
|
147,483 |
|
|
|
262,186 |
|
|
|
262,186 |
|
Invesment
on securities and real state (1)
|
|
|
1,259,896 |
|
|
|
1,133,861 |
|
|
|
1,026,507 |
|
|
|
1,259,896 |
|
|
|
1,026,507 |
|
|
|
126,035 |
|
|
|
233,389 |
|
|
|
233,389 |
|
Technical
reserves
|
|
|
1,126,039 |
|
|
|
1,079,531 |
|
|
|
1,016,054 |
|
|
|
1,126,039 |
|
|
|
1,016,054 |
|
|
|
46,508 |
|
|
|
109,985 |
|
|
|
109,985 |
|
Net
equity
|
|
|
338,320 |
|
|
|
288,277 |
|
|
|
242,243 |
|
|
|
338,320 |
|
|
|
242,243 |
|
|
|
50,042 |
|
|
|
96,077 |
|
|
|
96,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceded
|
|
|
18.7 |
% |
|
|
10.9 |
% |
|
|
13.2 |
% |
|
|
15.5 |
% |
|
|
15.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
loss ratio
|
|
|
39.3 |
% |
|
|
47.1 |
% |
|
|
38.4 |
% |
|
|
48.2 |
% |
|
|
55.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Loss
ratio
|
|
|
61.6 |
% |
|
|
60.6 |
% |
|
|
64.7 |
% |
|
|
63.3 |
% |
|
|
67.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs/ earned premium
|
|
|
14.9 |
% |
|
|
13.7 |
% |
|
|
13.0 |
% |
|
|
14.1 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions
+ technical expenses, net / net earned premiums
|
|
|
18.9 |
% |
|
|
17.2 |
% |
|
|
15.2 |
% |
|
|
17.7 |
% |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
results / total premium
|
|
|
11.9 |
% |
|
|
17.0 |
% |
|
|
15.2 |
% |
|
|
13.2 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
results / net earned premiums
|
|
|
19.5 |
% |
|
|
22.1 |
% |
|
|
20.1 |
% |
|
|
18.9 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
General
expenses / net earned premiums
|
|
|
23.6 |
% |
|
|
20.0 |
% |
|
|
20.3 |
% |
|
|
21.2 |
% |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income / total premiums
|
|
|
6.8 |
% |
|
|
10.1 |
% |
|
|
8.9 |
% |
|
|
8.1 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Return
on equity (2)(3)
|
|
|
18.7 |
% |
|
|
25.8 |
% |
|
|
26.6 |
% |
|
|
19.1 |
% |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Return
on total premiums
|
|
|
6.8 |
% |
|
|
10.1 |
% |
|
|
8.9 |
% |
|
|
8.1 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
equity / total assets
|
|
|
19.5 |
% |
|
|
18.1 |
% |
|
|
16.4 |
% |
|
|
19.5 |
% |
|
|
16.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Increase
in technical reserves
|
|
|
24.7 |
% |
|
|
13.9 |
% |
|
|
12.7 |
% |
|
|
17.2 |
% |
|
|
13.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
General
expenses / assets (2)(3)
|
|
|
7.2 |
% |
|
|
6.6 |
% |
|
|
6.5 |
% |
|
|
6.4 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
ratio of PPS + PS (4)
|
|
|
93.8 |
% |
|
|
92.0 |
% |
|
|
95.2 |
% |
|
|
94.0 |
% |
|
|
97.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
claims / net earned premiums
|
|
|
58.2 |
% |
|
|
60.9 |
% |
|
|
65.6 |
% |
|
|
61.2 |
% |
|
|
69.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
General
expenses and commissions / net earned premiums
|
|
|
35.6 |
% |
|
|
31.1 |
% |
|
|
29.6 |
% |
|
|
32.8 |
% |
|
|
28.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Real state investment were excluded
(2)
Annualized
(3)
Average are determined as the average of period - begging and period
ending
(4)
Without consolidated adjusments
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: November
12, 2010
|
|
|
|
CREDICORP
LTD.
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Giuliana Cuzquen |
|
|
|
Giuliana
Cuzquen |
|
|
|
Authorized
Representative
|