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 February 2011
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.
Fourth
Quarter 2010 Results
Lima, Peru, February 03, 2011 -
Credicorp (NYSE:BAP) announced today its unaudited results for the
fourth quarter of 2010. These results are reported on a consolidated basis
in accordance with IFRS in nominal U.S. Dollars.
HIGHLIGHTS
·
Credicorp reported solid 4Q10 earnings of US$ 129.3 million,
though substantially lower than the strong 3Q and 2Q net results, both of
which were significantly boosted by extraordinary earnings from the sale
of securities.
·
Business performance was strong and maintained its growth trend
throughout the year as evidenced by net interest income (NII) increasing
5% from 2Q to 3Q and 4% from 3Q to 4Q, reaching US$ 282 million this 4Q10.
Such robust growth is also evidenced by annual results which show a
significant net earnings expansion of about 22% reaching US$ 571.3
million, despite lower extraordinary income in 2010 vs.
2009.
·
Furthermore, the recovery of economic activity in the Peruvian
market is today unquestionable and led to the strong growth of our loan
book of 24.2%, with deposits also performing strongly and expanding
28.3%.
·
NIM dropped in 4Q as a result of the BCRP’s monetary policies which
by 4Q increased funding costs, but had a stable performance for the year,
as the impact of such policies and competitive & market pressures on
margins and fees was delayed and/or compensated by strong business
growth and rising local interest rates improving the yields on
investments. Thus, NIM remained stable at 4.8% for the year.
·
Non-financial income sustained its high level of 4Q and had an
excellent performance for the year with fees up 20.2% for the year and
gains on FX up 12.8%. No extraordinary non-recurrent gains on the sale of
securities were reported in 4Q (vs. the last 2Qs of high extra
ordinaries), leading to a drop in non financial income for 4Q. Despite
this, total non-financial income was 10.2% stronger in 2010 vs. 2009.
·
An improvement of our PDL ratio to 1.46% in 4Q10 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, our stronger incursion into more risky segments of the
business as well as regulatory changes that required more provisions led
to a decision to maintain a high level of provisions, which were still
7.6% lower than those of 3Q. Therefore, reserves were only
slightly lower for 2010 at 2.9% of total loans vs. 3.1% in 2009.
·
The continuing good performance of the insurance business is
reflected in the slightly lower though still very strong US$ 42.5 million
net premium income, which contributed to a 19.2% growth in premium
contribution for the year 2010.
·
After significant drops in operating costs in the 1H10, these were
3.4% up in 3Q and increased 18.2% in 4Q as a result of some typical year
end increases, some additional cost stemming from the increased levels of
variable remuneration of employees and investments in training &
advisory services as we develop business opportunities. Nevertheless, the
strong income generation led to an improvement in the efficiency ratio for
the year from 42.1% to 41.2%.
·
BCP’s 4Q operating results also reflect solid growth in net loans
of 7.8% and increase in NII of 5.1% QoQ, reflecting the higher cost of US
Dollar funding, and the stronger growth of the low margin corporate loan
book and large liquidity positions reducing the average yields on total
portfolio. Provisions for loan losses dropped only slightly despite
the improvements in portfolio quality and operating costs revealed a
strong year-end increase of 16.3% QoQ. Furthermore, a slight revaluation
of the US currency internationally also affected our open soles position
generating a small loss instead of the larger gains posted in previous Qs.
Thus, net contribution to Credicorp dropped to US$ 99.1 million from US$
135.2 in 3Q. Despite this Q drop, accumulated results are very strong
reaching US$ 476.3 million net earnings for 2010 and US$ 464.4 million
earnings contribution, which reflect a 19.9% earnings growth for the
year.
·
ASHC’s contribution to Credicorp this 4Q was up by 10.4% to US$
11.7 million following a good evolution of its asset management
business.
·
The insurance business also shows a strong performance reporting
for the 4Q net earnings at the same high level of 3Q of US$ 16.5 million
and a 10.8% higher net income of US$ 68.3 million for the full year.
However, the acquisition of ALICO’s shares of Pacifico boosted PPS’s
income contribution to Credicorp to US$ 16.0 million for 4Q, 52.9% higher
than the previous Q.
·
Prima AFP maintained good business results and benefitted from
a tax reversal due to a change in IFRS accounting that led to US$ 8.0
million net income contribution for 4Q10. Accumulated results for the year
also reveal a 22.6% increase in contribution to US$25.5 million.
·
Overall, Credicorp had a good 4Q which contributed to the excellent
income generation in all businesses reaching loan book growth of 24.2% for
the year, 22.7% ROAE, a 1.46% PDL ratio and an improved efficiency ratio
of 41.2% for the year 2010.
|
I.
Credicorp Ltd.
Overview
Credicorp
reported solid 4Q10 earnings of US$ 129.3 million, though substantially lower
than the strong 3Q and 2Q net results, both of which were significantly boosted
by extraordinary earnings from the sale of securities and translation
results. This excellent business result for the 4Q contributed to the
total net income after minority holdings reported by Credicorp for the year
which reached US$ 571.3 million. These results evidence robust net earnings
expansion of about 21.6%, despite lower extraordinary income in 2010 vs.
2009.
The
recovery of economic activity in the Peruvian market is today unquestionable and
led to the strong growth in our loan book of 24.2%, with deposits also
performing strongly and expanding by 28.3%. Only in 4Q net loans were up 7.5%
reflecting strong business activity. This growth stems from the strong corporate
activity which made wholesale banking become the star performer in terms of
growth for the year 2010, growing 8.3% QoQ and 29.9% YoY. On the retail banking
side, the best performers were SME / PYME lending which grew 10.1% y 28.3%, and
mortgage lending expanding 6.6% and 20.5% quarterly or yearly respectively.
Following
such strong loan book expansion, business performance was robust this 4Q and
maintained its growth trend throughout the year as evidenced by net interest
income (NII) increasing 5% from 2Q to 3Q and 3.9% from 3Q to 4Q, reaching US$
282.1 million this 4Q10. These improvements in NII reflect however the pressure
on funding cost stemming from the restrictive monetary policy of the central
bank which led to increases in interest paid on time deposits and increases in
reserve requirements, and from measures taken to reduce the pressure on the
exchange rate for the local currency, which in turn also generated some scarcity
of the US currency. This, plus the strong growth of the wholesale portfolio with
tighter margins and high levels of liquidity invested at the Central Bank with
even smaller margins affected NIM for 4Q and led to a tighter NIM for the
period of 4.6%. Nevertheless, overall NIM for the year remained flat at 4.83%,
since the funding cost of deposits was significantly lower still for the year
vs. 2009 and could compensate the negative pressure of the stronger expansion of
the low margin corporate business and high liquidity positions.
A further
improvement of our PDL ratio to 1.46% in 4Q10 was recorded as our loan portfolio
grew at the above mentioned rates, and the absolute volumes of past due loans
dropped again. Nevertheless, our conservative internal policy on coverage and
provisions, as well as regulatory changes that required more provisions
–including the pro-cyclical provisions- led us to maintain a high level of
provisions. Thus reserves for loan losses reached 2.9% of our loan book vs. 3.1%
in 3Q, while coverage increased to 198.2% from 193.1%.
Non-financial
income had rather a flat performance with fee income staying at the same high
levels of the previous Qs and gains on FX transactions up 10.3%. The
extraordinary non-recurrent gains on the sale of securities in the previous 2 Qs
have a distorting effect on non financial income and the bottom line results.
The
insurance business also performed well with income from net insurance premiums
up 5.2%, but also a significant increase in claims that led to a 3.9% drop in
total quarterly operating income contributed by the insurance business to
Credicorp.
After two
consecutive QoQ drops in operating costs in the 1H10, these were 3.4% up in 3Q
and increased even further by +18.2% in 4Q. This was the result of some typical
year-end increases in administrative costs, some additional cost stemming from
the increased levels of variable remuneration of employees provisions for our
incentive programs and investments in training & advisory services as we
develop business opportunities. Nevertheless, the strong income generation led
to an improvement in the efficiency ratio for the year from 42.1% to
41.2%.
|
|
Quarter
|
|
|
Change %
|
|
|
Year ended
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
Dec 10 / Dec 09
|
|
Net
Interest income
|
|
|
282,131 |
|
|
|
271,438 |
|
|
|
237,963 |
|
|
|
3.9 |
% |
|
|
18.6 |
% |
|
|
1,057,587 |
|
|
|
891,918 |
|
|
|
18.6 |
% |
Net
provisions for loan losses
|
|
|
(48,304 |
) |
|
|
(52,303 |
) |
|
|
(44,044 |
) |
|
|
-7.6 |
% |
|
|
9.7 |
% |
|
|
(174,682 |
) |
|
|
(163,392 |
) |
|
|
6.9 |
% |
Non
financial income
|
|
|
191,866 |
|
|
|
193,987 |
|
|
|
174,124 |
|
|
|
-1.1 |
% |
|
|
10.2 |
% |
|
|
750,215 |
|
|
|
680,866 |
|
|
|
10.2 |
% |
Insurance
premiums and claims
|
|
|
42,498 |
|
|
|
44,220 |
|
|
|
45,029 |
|
|
|
-3.9 |
% |
|
|
-5.6 |
% |
|
|
164,721 |
|
|
|
138,225 |
|
|
|
19.2 |
% |
Operating
expenses
|
|
|
(287,444 |
) |
|
|
(243,281 |
) |
|
|
(260,064 |
) |
|
|
18.2 |
% |
|
|
10.5 |
% |
|
|
(1,003,744 |
) |
|
|
(898,639 |
) |
|
|
11.7 |
% |
Operating
income (1)
|
|
|
180,747 |
|
|
|
214,060 |
|
|
|
153,008 |
|
|
|
-15.6 |
% |
|
|
18.1 |
% |
|
|
794,097 |
|
|
|
648,977 |
|
|
|
22.4 |
% |
Core
operating income (2)
|
|
|
180,747 |
|
|
|
204,423 |
|
|
|
153,008 |
|
|
|
-11.6 |
% |
|
|
18.1 |
% |
|
|
759,111 |
|
|
|
576,250 |
|
|
|
31.7 |
% |
Non
core operating income (3)
|
|
|
- |
|
|
|
9,637 |
|
|
|
- |
|
|
|
-100.0 |
% |
|
|
- |
|
|
|
34,986 |
|
|
|
72,727 |
|
|
|
-51.9 |
% |
Translation
results
|
|
|
(7,074 |
) |
|
|
14,467 |
|
|
|
1,075 |
|
|
|
-148.9 |
% |
|
|
-758.2 |
% |
|
|
24,128 |
|
|
|
12,371 |
|
|
|
95.0 |
% |
Worker's
profit sharing and income taxes
|
|
|
(41,456 |
) |
|
|
(62,941 |
) |
|
|
(21,112 |
) |
|
|
-34.1 |
% |
|
|
96.4 |
% |
|
|
(214,910 |
) |
|
|
(156,913 |
) |
|
|
37.0 |
% |
Net
income
|
|
|
132,217 |
|
|
|
165,586 |
|
|
|
132,971 |
|
|
|
-20.2 |
% |
|
|
-0.6 |
% |
|
|
603,315 |
|
|
|
504,435 |
|
|
|
19.6 |
% |
Minority
Interest
|
|
|
2,935 |
|
|
|
9,360 |
|
|
|
10,675 |
|
|
|
-68.6 |
% |
|
|
-72.5 |
% |
|
|
32,013 |
|
|
|
34,651 |
|
|
|
-7.6 |
% |
Net
income attributed to Credicorp
|
|
|
129,282 |
|
|
|
156,226 |
|
|
|
122,296 |
|
|
|
-17.2 |
% |
|
|
5.7 |
% |
|
|
571,302 |
|
|
|
469,783 |
|
|
|
21.6 |
% |
Net
income/share (US$)
|
|
|
1.62 |
|
|
|
1.96 |
|
|
|
1.53 |
|
|
|
-17.2 |
% |
|
|
5.7 |
% |
|
|
7.16 |
|
|
|
5.89 |
|
|
|
21.6 |
% |
Total
loans
|
|
|
14,393,358 |
|
|
|
13,409,258 |
|
|
|
11,585,635 |
|
|
|
7.3 |
% |
|
|
24.2 |
% |
|
|
14,393,358 |
|
|
|
11,585,635 |
|
|
|
24.2 |
% |
Deposits
and obligations
|
|
|
18,085,310 |
|
|
|
16,652,009 |
|
|
|
14,091,828 |
|
|
|
8.6 |
% |
|
|
28.3 |
% |
|
|
18,085,310 |
|
|
|
14,091,828 |
|
|
|
28.3 |
% |
Net
shareholders' equity
|
|
|
2,838,360 |
|
|
|
2,689,315 |
|
|
|
2,316,856 |
|
|
|
5.5 |
% |
|
|
22.5 |
% |
|
|
2,838,360 |
|
|
|
2,316,856 |
|
|
|
22.5 |
% |
Net
interest margin
|
|
|
4.6 |
% |
|
|
4.8 |
% |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
4.8 |
% |
|
|
4.9 |
% |
|
|
|
|
Efficiency
ratio
|
|
|
43.7 |
% |
|
|
39.4 |
% |
|
|
44.0 |
% |
|
|
|
|
|
|
|
|
|
|
41.2 |
% |
|
|
42.1 |
% |
|
|
|
|
Return
on average shareholders' equity
|
|
|
18.7 |
% |
|
|
24.4 |
% |
|
|
22.0 |
% |
|
|
|
|
|
|
|
|
|
|
22.7 |
% |
|
|
24.1 |
% |
|
|
|
|
PDL
/ total loans
|
|
|
1.46 |
% |
|
|
1.59 |
% |
|
|
1.59 |
% |
|
|
|
|
|
|
|
|
|
|
1.46 |
% |
|
|
1.59 |
% |
|
|
|
|
Coverage
ratio of PDLs
|
|
|
198.2 |
% |
|
|
193.1 |
% |
|
|
192.0 |
% |
|
|
|
|
|
|
|
|
|
|
198.2 |
% |
|
|
192.0 |
% |
|
|
|
|
Employees
|
|
|
19,641 |
|
|
|
19,012 |
|
|
|
20,148 |
|
|
|
|
|
|
|
|
|
|
|
19,641 |
|
|
|
20,148 |
|
|
|
|
|
(1)
Income before translation results, workers' profit sharing and income
taxes.
(2)
Core operating income = Operating income - non core operating
income.
(3)
Includes non core operating income from net gains on sales of securities of US$
43.406 million in 1Q09, US$ 29.321 million in 2Q09, US$ 25.349 million in 2Q10
and US$ 9.637 million in 3Q10, registered in subsidiary BCP.
In
addition to the pressures on funding costs, the absence of the substantial
extraordinary gains reported in the previous Qs and the higher operating costs;
the international revaluation of the US Dollar also generated a translation loss
of US$ 7.1 million (vs. the gains reported in the previous quarters given the
strong local currency position) which exacerbated the drop of Credicorp’s 4Q
results. Thus net income reached US$ 132.2 million, down 20.2% QoQ which
resulted in net income attributable to Credicorp of US$ 129.3
million.
The
excellent business performance of Credicorp is significantly more evident
looking at the performance for the full year, with operating income up by 22.4%,
leading to total net income generated by Credicorp of US$ 603.3 million, of
which US$ 571.3 million are attributable to Credicorp and represent an
impressive income growth of 21.6% for the year 2010. This performance reflects
as well a 22.7% ROAE, 2.2% ROAA, 4.83% NIM, 41.2% efficiency ratio and 1.46% PDL
ratio with 198.2% coverage, by all means, more than satisfying results and all
at the high end of expected targets.
Credicorp
– The Sum of Its Parts
The
excellent evolution of Credicorp’s businesses this 4Q10 is again somewhat
hidden by different elements, but looking at the individual businesses and
especially at year end results, the excellence of its performance becomes
evident.
There is
today little doubt about the strength of the growth cycle that has started again
in the country, which 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.
The drop
in BCP’s 4Q results disguises the strong business evolution that resulted in a
7.6% loan book growth for the Q and 23.8% for the year. The elements that
explain the drop in the 4Q10 like the high level of provisions and higher
operating costs had in fact a modest expansion when looking at the full year,
since provisions grew only 6.5% and costs 10.9% for the year. Non financial
income also improved 9.8% for the year despite the fact that the absence of
these affected 4Q results and extraordinary gains on the sale of securities were
significantly higher in 2009 than in 2010. In fact, the superb performance of
fee income, up 25.5% for the year helped offset the difference in extraordinary
results. Another element that exacerbated the 4Q drop in income for BCP was the
translation results which turned to a loss this 4Q due to the sudden
strengthening of the US currency internationally. For the year, however, this
line is also a strong positive with US$ 23.3 million in earnings that helps
compensate for higher profit sharing and taxes. Bottom line: BCP had an
excellent increase in earnings of 19.9% for 2010, no doubt a superb result.
Thus, net
contribution to Credicorp was up 19.5% for the year reaching US$ 464.4 million,
which reflects a strong ROAE of 26.8% and ROAA of 2.1%.
Earnings contribution
|
|
Quarter
|
|
|
Change %
|
|
|
Year ended
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
Dec 10 / Dec 09
|
|
Banco
de Crédito BCP(1)
|
|
|
99,129 |
|
|
|
135,216 |
|
|
|
104,518 |
|
|
|
-27 |
% |
|
|
-5 |
% |
|
|
464,360 |
|
|
|
388,501 |
|
|
|
20 |
% |
BCB
|
|
|
3,445 |
|
|
|
3,442 |
|
|
|
9,521 |
|
|
|
0 |
% |
|
|
-64 |
% |
|
|
15,815 |
|
|
|
30,372 |
|
|
|
-48 |
% |
Financiera
Edyficar
|
|
|
4,420 |
|
|
|
5,313 |
|
|
|
1,112 |
|
|
|
-17 |
% |
|
|
297 |
% |
|
|
21,507 |
|
|
|
1,112 |
|
|
|
1834 |
% |
Atlantic
|
|
|
11,711 |
|
|
|
10,603 |
|
|
|
14,856 |
|
|
|
10 |
% |
|
|
-21 |
% |
|
|
48,801 |
|
|
|
29,716 |
|
|
|
64 |
% |
PPS
|
|
|
15,962 |
|
|
|
10,439 |
|
|
|
12,372 |
|
|
|
53 |
% |
|
|
29 |
% |
|
|
47,411 |
|
|
|
37,374 |
|
|
|
27 |
% |
Grupo
Crédito (2)
|
|
|
2,913 |
|
|
|
6,069 |
|
|
|
5,548 |
|
|
|
-52 |
% |
|
|
-47 |
% |
|
|
23,049 |
|
|
|
26,556 |
|
|
|
-13 |
% |
Prima
|
|
|
8,006 |
|
|
|
5,696 |
|
|
|
4,224 |
|
|
|
41 |
% |
|
|
90 |
% |
|
|
25,505 |
|
|
|
20,798 |
|
|
|
23 |
% |
Others
|
|
|
(5,093 |
) |
|
|
373 |
|
|
|
1,324 |
|
|
|
-1465 |
% |
|
|
-485 |
% |
|
|
(2,456 |
) |
|
|
5,758 |
|
|
|
-143 |
% |
Credicorp
and others (3)
|
|
|
(433 |
) |
|
|
(6,101 |
) |
|
|
(14,996 |
) |
|
|
-93 |
% |
|
|
-97 |
% |
|
|
(12,319 |
) |
|
|
(12,363 |
) |
|
|
0 |
% |
Credicorp
Ltd.
|
|
|
(781 |
) |
|
|
(5,844 |
) |
|
|
(14,992 |
) |
|
|
-87 |
% |
|
|
-95 |
% |
|
|
(12,123 |
) |
|
|
(13,787 |
) |
|
|
-12 |
% |
Others
|
|
|
348 |
|
|
|
(257 |
) |
|
|
(4 |
) |
|
|
-235 |
% |
|
|
-9132 |
% |
|
|
(196 |
) |
|
|
1,424 |
|
|
|
-114 |
% |
Net
income attributable to Credicorp
|
|
|
129,282 |
|
|
|
156,226 |
|
|
|
122,298 |
|
|
|
-17 |
% |
|
|
6 |
% |
|
|
571,302 |
|
|
|
469,784 |
|
|
|
22 |
% |
(1)
Includes Banco de Crédito de Bolivia and 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 4Q flat earnings contribution of US$ 3.4 million which
reflect the new level of income generation of Bolivia after all the intervention
of the government that led to the reduction of margins and fees and despite a
robust loan growth which again reached 6.0% QoQ. Overall, performance for the
year 2010 revealed robust loan growth of 25.7%, but profitability has come down
to a total contribution for the year of US$ 15.8 million down from US$ 30.4
million in 2009 and even higher contributions in the past. Nevertheless, ROAE
remains at an acceptable 14.7%.
Financiera
Edyficar obtained positive results in 4Q10, which contributed to consolidating
the company’s excellent performance throughout 2010. Net earnings in 4Q10 were
US$ 4.5 million, which is lower than the figure reported in 3Q10 (-16.9%) due
primarily to higher income tax provisions for 2010 realized in the 4Q and due to
a slight loss on local currency exposure after the Nuevo Sol depreciated 1%
against the US Dollar during 4Q10. Nevertheless, business evolution
was excellent with a loan portfolio up 42.6% for the year maintaining its PDL
ratio low at 4.0%.
ASHC
reported an increase in contribution of 10.4% reaching US$ 11.7 million for
4Q10. The QoQ increase is primarily attributable to higher margins in 4Q10,
which were associated with a strategy to seek higher returns by reshuffling the
investment portfolio. Aligned with this move, US$ 1.8 million in provisions were
set aside this quarter in keeping with the bank’s conservative
policy. This result brought ASHC’s contribution to Credicorp to a
record sum of US$ 48.8 million, an unprecedented figure for our asset management
& private banking business.
Pacifico
insurance group reported net income of US$ 16.5 million in 4Q10, similar to the
figure of US$ 16.4 million recorded in 3Q10. However, accumulated
results in 2010 reported record net income of US$ 68.3 million, which tops
2009’s result of US$ 61.7 million by 10.8%. This increase is due primarily an
improvement in the underwriting result. The underwriting result obtained in 2010
totaled US$ 93.4 million, which exceeds last year’s result by 16.9%. This
significant growth is due to a lower loss ratio of 63.6% versus 65.2% in 2009,
which is in turn attributable to a disciplined approach to underwriting and
portfolio diversification. The expense side however, increased enough to offset
the improvement in the loss ratio, though leaving enough room for the 10.8%
expansion of net earnings referred to above.
In
addition, Pacifico’s contribution to Credicorp benefitted this last 4Q from the
acquisition of ALICO’s shares of the Pacifico group, especially since the
profitable life insurance business contributes now almost 100% of its income to
the group vs. about 50 % before the acquisition. Such contribution reached this
4Q US$ 16.0 million which exceeded 3Q10’s figure and topped the earnings of US$
12.4 million reported in 4Q09. For the year, PPS contributed US$ 47.4 million to
Credicorp’s bottom line, becoming this way a significant player that offers also
a large growth potential.
Finally,
Prima AFP outperformed its previous results and reported US$ 8.0 million
contribution for the 4Q, up 40.6%. This is the result of the reversal of some
provisions for taxes & profit sharing and a slight increase in fee income.
On a yearly basis, Prima also reports an extraordinary 22.6% increase in net
income contribution reaching a total US$ 25.5 million, an outstanding result for
a business that is still constraint by temporary regulatory measures.
Furthermore, Prima has finally consolidated its leadership in the industry
including its volumes of assets under management.
Credicorp
Ltd.’s line includes the provisions for withholding taxes on dividends paid to
Credicorp and eventually 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. However, the
change in the holding structure with the relevance given to Grupo Credito as a
local holding has reduced significantly the withholding taxes paid and therefore
the provisions needed for these every Q, which explains the drop in the
provisions reported at Credicorp Ltd. It is also worth mentioning, that the cost
of executing the changes in holding structure summed approximately US$9 million
(partly booked at Grupo Credito under others and partly at
Credicorp Ltd.), but were more than compensated by the savings in withholding
taxes the change generated for which provisions had been created and were now
reversed.
As
described above, all business segments are today aligned with Credicorp’s
overall objectives and have become significant and profitable contributors to
the growth targets set by Credicorp.
II.
Banco de Crédito – BCP - Consolidated
Summary
4Q10
BCP’s net
income in 4Q10 totaled US$ 101.6 million. Although this result reflects a 26%
drop QoQ, it in no way indicates that business is deteriorating given that the
bank’s core earnings registered a 3.6% expansion during the same
period.
The
bank’s core earning, in fact, reported significant growth and demonstrate that
the upward trend seen earlier in the year remains in play. In this context, net
interest and dividend income grew 5.1% QoQ while fee income remained at levels
similar to those seen in the previous quarter. Net gain on FX transactions grew
9.7% this quarter.
Core earnings
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec. 10
|
|
|
Dec. 09
|
|
|
Dec. 10 / Dec. 09
|
|
Net
interest and dividend income
|
|
|
254,533 |
|
|
|
242,274 |
|
|
|
211,233 |
|
|
|
5.1 |
% |
|
|
20.5 |
% |
|
|
944,634 |
|
|
|
798,217 |
|
|
|
18.3 |
% |
Fee
income, net
|
|
|
120,136 |
|
|
|
120,839 |
|
|
|
109,546 |
|
|
|
-0.6 |
% |
|
|
9.7 |
% |
|
|
461,775 |
|
|
|
368,067 |
|
|
|
25.5 |
% |
Net
gain on foreign exchange transactions
|
|
|
28,909 |
|
|
|
26,354 |
|
|
|
23,430 |
|
|
|
9.7 |
% |
|
|
23.4 |
% |
|
|
104,361 |
|
|
|
93,462 |
|
|
|
11.7 |
% |
Core
earnings
|
|
|
403,578 |
|
|
|
389,467 |
|
|
|
344,209 |
|
|
|
3.6 |
% |
|
|
17.2 |
% |
|
|
1,510,770 |
|
|
|
1,259,746 |
|
|
|
19.9 |
% |
This
evolution clearly indicates that the decline is associated with significantly
lower extraordinary income from sales of securities which reached
substantial levels in the previous two quarters; higher operating expenses
related to seasonal effects, the impact of variable remuneration and incentive
compensation provisions during a quarter marked by strong loan growth and
continuous growth of the network; and the global recovery of the US dollar,
reflected in the exchange rate, generating translation losses that contrast with
the translation gains posted in the previous
quarter.
The
aforementioned demonstrates that the banking business continues to
experience the strong expansion reported in previous quarters. The year’s
accumulated results leave no room for doubt that this expansive trend continues
as BCP reported close to 24% growth in loans, 20% increase in net income of US$
476.3 million and a 22.5% expansion in operating income.
Banco de Credito and Subsidiaries
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec. 10
|
|
|
Dec. 09
|
|
|
Dec. 10 / Dec. 09
|
|
Net
financial income
|
|
|
254,533 |
|
|
|
242,274 |
|
|
|
211,233 |
|
|
|
5.1 |
% |
|
|
20.5 |
% |
|
|
944,634 |
|
|
|
798,217 |
|
|
|
18.3 |
% |
Total
provisions for loan loasses
|
|
|
(48,531 |
) |
|
|
(52,614 |
) |
|
|
(44,933 |
) |
|
|
-7.8 |
% |
|
|
8.0 |
% |
|
|
(175,773 |
) |
|
|
(165,104 |
) |
|
|
6.5 |
% |
Non
financial income
|
|
|
159,912 |
|
|
|
167,348 |
|
|
|
144,977 |
|
|
|
-4.4 |
% |
|
|
10.3 |
% |
|
|
634,642 |
|
|
|
577,945 |
|
|
|
9.8 |
% |
Operating
expenses
|
|
|
(214,813 |
) |
|
|
(184,751 |
) |
|
|
(197,956 |
) |
|
|
16.3 |
% |
|
|
8.5 |
% |
|
|
(768,077 |
) |
|
|
(692,423 |
) |
|
|
10.9 |
% |
Operating
income (1)
|
|
|
151,101 |
|
|
|
172,257 |
|
|
|
113,321 |
|
|
|
-12.3 |
% |
|
|
33.3 |
% |
|
|
635,426 |
|
|
|
518,635 |
|
|
|
22.5 |
% |
Core
operating income (2)
|
|
|
151,101 |
|
|
|
162,620 |
|
|
|
113,321 |
|
|
|
-7.1 |
% |
|
|
33.3 |
% |
|
|
600,440 |
|
|
|
445,908 |
|
|
|
34.7 |
% |
Non
core operating income (3)
|
|
|
- |
|
|
|
9,637 |
|
|
|
- |
|
|
|
-100.0 |
% |
|
|
- |
|
|
|
34,986 |
|
|
|
72,727 |
|
|
|
-51.9 |
% |
Translation
results
|
|
|
(6,281 |
) |
|
|
12,896 |
|
|
|
12,609 |
|
|
|
-148.7 |
% |
|
|
-149.8 |
% |
|
|
23,267 |
|
|
|
7,802 |
|
|
|
198.2 |
% |
Worker's
profit sharing and income taxes
|
|
|
(43,103 |
) |
|
|
(46,382 |
) |
|
|
(18,207 |
) |
|
|
-7.1 |
% |
|
|
136.7 |
% |
|
|
(181,685 |
) |
|
|
(127,884 |
) |
|
|
42.1 |
% |
Net
income
|
|
|
101,567 |
|
|
|
138,620 |
|
|
|
107,398 |
|
|
|
-26.7 |
% |
|
|
-5.4 |
% |
|
|
476,317 |
|
|
|
397,378 |
|
|
|
19.9 |
% |
Net
income / share (US$)
|
|
|
0.040 |
|
|
|
0.054 |
|
|
|
0.042 |
|
|
|
-26.8 |
% |
|
|
-5.5 |
% |
|
|
0.186 |
|
|
|
0.155 |
|
|
|
19.8 |
% |
Total
loans
|
|
|
14,334,841 |
|
|
|
13,326,601 |
|
|
|
11,577,303 |
|
|
|
7.6 |
% |
|
|
23.8 |
% |
|
|
14,334,841 |
|
|
|
11,577,303 |
|
|
|
23.8 |
% |
Deposits
and obligations
|
|
|
17,069,817 |
|
|
|
15,642,366 |
|
|
|
14,465,809 |
|
|
|
9.1 |
% |
|
|
18.0 |
% |
|
|
17,069,817 |
|
|
|
14,465,809 |
|
|
|
18.0 |
% |
Net
shareholders´ equity
|
|
|
1,992,545 |
|
|
|
1,864,471 |
|
|
|
1,675,533 |
|
|
|
6.9 |
% |
|
|
18.9 |
% |
|
|
1,992,545 |
|
|
|
1,675,533 |
|
|
|
18.9 |
% |
Net
financial margin
|
|
|
4.5 |
% |
|
|
4.8 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
4.8 |
% |
|
|
4.9 |
% |
|
|
|
|
Efficiency
ratio
|
|
|
50.9 |
% |
|
|
46.3 |
% |
|
|
53.8 |
% |
|
|
|
|
|
|
|
|
|
|
49.1 |
% |
|
|
51.9 |
% |
|
|
|
|
Return
on average equity
|
|
|
21.1 |
% |
|
|
31.3 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
|
|
26.8 |
% |
|
|
26.6 |
% |
|
|
|
|
PDL
/ Total loans
|
|
|
1.5 |
% |
|
|
1.6 |
% |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
1.5 |
% |
|
|
1.6 |
% |
|
|
|
|
Coverage
ratio of PDLs
|
|
|
198.5 |
% |
|
|
193.3 |
% |
|
|
192.3 |
% |
|
|
|
|
|
|
|
|
|
|
198.5 |
% |
|
|
192.3 |
% |
|
|
|
|
BIS
ratio
|
|
|
12.8 |
% |
|
|
13.9 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
12.8 |
% |
|
|
14.5 |
% |
|
|
|
|
Branches
|
|
|
327 |
|
|
|
324 |
|
|
|
334 |
|
|
|
|
|
|
|
|
|
|
|
327 |
|
|
|
334 |
|
|
|
|
|
Agentes
BCP
|
|
|
3,513 |
|
|
|
3,354 |
|
|
|
2,801 |
|
|
|
|
|
|
|
|
|
|
|
3,513 |
|
|
|
2,801 |
|
|
|
|
|
ATMs
|
|
|
1,159 |
|
|
|
1,109 |
|
|
|
996 |
|
|
|
|
|
|
|
|
|
|
|
1,159 |
|
|
|
996 |
|
|
|
|
|
Employees
|
|
|
16,148 |
|
|
|
15,650 |
|
|
|
16,748 |
|
|
|
|
|
|
|
|
|
|
|
16,148 |
|
|
|
16,748 |
|
|
|
|
|
(1)
Income before translation results, workers' profit sharing and income
taxes.
(2)
Core operating income = Operating income - non core operating
income.
(3)
Includes non core operating income from net gains on sales of securities of US$
43.406 million in 1Q09, US$ 29.321 milliom in 2Q09, US$ 25.349 million in 2Q10
and US$ 9.637 million in 3Q10.
If we
look at the differences that explain the lower result this quarter in greater
detail, the following points stand out:
|
i)
The lower income from sales of securities explains the decline
of close to US$ 10
million;
|
|
ii)
Translation losses due to the recovery of the US currency, contrasted with
the translation gains posted last quarter, which account for a decline of
almost US$ 19 million; and
|
|
iii)
Higher expenses for personnel, an increase of the impact of variable
remuneration due to strong loan expansion and the provisions required for
the incentive compensation packages, and seasonally higher administrative
expenses increased total operating expenses for the Q in about US$ 30
million.
|
Additionally,
loan provisions remained historically high due to the bank’s decision to
implement pro-cyclical provisions prior to the date required by the Supervisor
as well as the conservative approach of management. These high levels were
maintained despite a drop in the past-due loans and the subsequent improvement
in the past-due-loan ratio, which fell from 1.6% to 1.5% at the end of the
year.
The
assets level grew substantially, reporting 8.1% growth QoQ due to an increase in
total loans (+7.8% QoQ) and the bank’s higher liquidity levels (+10.9%), the
latter of which suffered a re-composition after the BCRP decided not to renew a
significant quantity of CDs (securities available for sale), choosing instead to
replace them by auctioning BCRP time deposits. This move was meant to reduce the
supply of investments denominated in Nuevos Soles made available to non-banking
entities (such as funds), which had been selling their positions in dollars to
invest in these attractive local currency CDs, generating significant
revaluation pressure on the exchange rate.
This
strong growth in assets went hand-in-hand with substantial growth in deposits
–mainly time-deposits- , which increased 9.1% QoQ and the expansion of 14.6% QoQ
in due to banks, an evolution that spurred funding cost in this 4Q.
After
three consecutive quarters of improvement in operating efficiency, this
indicator increased in 4Q10 due to higher spending reaching a level of 50.9%.
This level represents the high end of the new range of the efficiency ratio that
we hope to maintain after implementing a series of measures.
The lower
result this quarter also affected ROAE, which only reached 21.1% this quarter
while ROAA fell to 1.7%.
Comparison
2010 vs. 2009
Accumulated
results this year, in contrast to quarterly results, reflect the excellent
business evolution in terms of expansion of the loan portfolio and assets level
as well as increased earnings. The accumulated results also reported an increase
in ROAE, which went from 26.6% to 26.8%.
Total
loans grew 24% and subsequently, net interest income also increased 18.3%, which
was in line with loan growth, while NIM was sustained at its 4.8%. Nevertheless,
provisions, which were high during the last two quarters, only grew 6.5%.
Fee
income experienced record growth of 25.5% in 2010, which led to 9.8% growth in
non-financial income despite income from securities sales did not reach the
extraordinarily high levels registered the previous
year.
On the
expenses side, although operating expenses grew substantially this last quarter,
accumulated results for the year reported a very modest 10.9%. As such, the
efficiency ratio reflects the year’s true achievements in terms of this
indicator, which fell from 51.9% to 49.1%. This result is in line with our goal
to improve the bank’s efficiency.
Despite a
minor translation loss in 4Q10, the year’s accumulated results report
translations gains for triple the amount registered last year. This confirms
that bank’s policy in terms of FX positions in a context marked by a revaluation
in the Nuevo Sol, which reached 2.8% in 2010, was on-target.
In this
scenario, accumulated income in 2010 totaled US$ 476 million, which is a new
record for the bank and reflects 19.9% growth in earnings this
year.
II.1
Interest Earning Assets
Interest
earning assets reported a significant increase of 8.9% QoQ. This was
attributable to growth in current loans (+7.7%) and in other liquidity
positions, which were restructured to include BCRP time deposits.
Interest earning assets
|
|
Quarter
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
BCRP
and other banks
|
|
|
7,661,891 |
|
|
|
3,012,573 |
|
|
|
2,980,575 |
|
|
|
154.3 |
% |
|
|
157.1 |
% |
Interbank
funds
|
|
|
59,000 |
|
|
|
- |
|
|
|
75,000 |
|
|
|
100.0 |
% |
|
|
-21.3 |
% |
Trading
securities
|
|
|
114,430 |
|
|
|
73,986 |
|
|
|
70,318 |
|
|
|
54.7 |
% |
|
|
62.7 |
% |
Securities
available for sale
|
|
|
1,503,201 |
|
|
|
5,336,436 |
|
|
|
3,026,542 |
|
|
|
-71.8 |
% |
|
|
-50.3 |
% |
Current
loans
|
|
|
14,125,859 |
|
|
|
13,114,103 |
|
|
|
11,393,557 |
|
|
|
7.7 |
% |
|
|
24.0 |
% |
Total
interest earning assets
|
|
|
23,464,381 |
|
|
|
21,537,098 |
|
|
|
17,545,992 |
|
|
|
8.9 |
% |
|
|
33.7 |
% |
The most
significant re-composition of assets came after BCRP decided to stop issuing CDs
and replace them with Time deposits auctions. This restructuring has had little
impact on investment yields for banks given that it generates no relevant effect
on rates. Nevertheless, investment in BCRP deposits is only available to banking
entities and cannot be accessed by other financial entities such as investment
funds, which, on the contrary had access to BCRP CDs. This decision allowed BRCP
to reduce revaluation pressures on the domestic currency, which were generated
by investment funds’ attempts to improve profitability in Nuevos Soles through
the investment in CDs for positions held in dollars.
Furthermore,
we would like to point out that BCRP’s policy on legal reserves, which increased
reserve requirements in approximately US$ 840 million throughout 2010, had some
impact on the profitability of assets.
On the
other hand, current loans increased 7.7% QoQ while the rest of investments &
deposits in BCRP and other banks grew 10.9% QoQ, which changed the composition
of interest-earning assets against the most profitable asset, having also a
negative impact on NIM, as we explain later on.
Loan
portfolio
At the
end of 2010, current loans at BCP totaled US$ 14,125 million, which stands as
evidence of sustained growth throughout the year and represents a 7.7% expansion
QoQ and 24% YoY. The upward trend in 2010 is attributable to the highly dynamic
local economy and the Bank’s continuous efforts to become market leader in all
segments.
The
following chart shows the evolution of average daily balances and end-of-period
balances. It is evident that the upward trend in loans has been constant
throughout the year. Quarterly evolution shows 7.8% growth, which tops the 5.5%
recorded last quarter and represents the most significant quarterly expansion in
2010.
If we
analyze daily balances for each loan unit, it is evident that all the segments
have grown QoQ and YoY. Wholesale Banking reported increases of 8.3% QoQ and
29.9% YoY that are associated primarily with financing for investment projects.
Retail Banking reported 7.5% growth QoQ and 21.1% YoY, which is attributable to
efforts to increase banking penetration.
Average
Daily Balances
|
|
TOTAL LOANS (1)
|
|
|
|
(US$ million)
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
TaT
|
|
|
AaA
|
|
Wholesale
Banking
|
|
|
7,650.8 |
|
|
|
7,065.0 |
|
|
|
5,891.3 |
|
|
|
8.3 |
% |
|
|
29.9 |
% |
-
Corporate
|
|
|
5,087.8 |
|
|
|
4,552.2 |
|
|
|
3,987.2 |
|
|
|
11.8 |
% |
|
|
27.6 |
% |
-
Middle Market
|
|
|
2,563.0 |
|
|
|
2,512.7 |
|
|
|
1,904.0 |
|
|
|
2.0 |
% |
|
|
34.6 |
% |
Retail
Banking
|
|
|
5,182.5 |
|
|
|
4,821.0 |
|
|
|
4,280.5 |
|
|
|
7.5 |
% |
|
|
21.1 |
% |
-
SME + Business
|
|
|
1,798.3 |
|
|
|
1,633.0 |
|
|
|
1,401.8 |
|
|
|
10.1 |
% |
|
|
28.3 |
% |
-
Mortgages
|
|
|
1,869.2 |
|
|
|
1,753.4 |
|
|
|
1,551.8 |
|
|
|
6.6 |
% |
|
|
20.5 |
% |
-
Consumer
|
|
|
949.9 |
|
|
|
898.3 |
|
|
|
828.8 |
|
|
|
5.7 |
% |
|
|
14.6 |
% |
-
Credit Cards
|
|
|
565.0 |
|
|
|
536.3 |
|
|
|
498.1 |
|
|
|
5.4 |
% |
|
|
13.4 |
% |
Edyficar
|
|
|
333.3 |
|
|
|
302.1 |
|
|
|
254.4 |
* |
|
|
10.3 |
% |
|
|
31.0 |
% |
Others
(2)
|
|
|
762.0 |
|
|
|
735.1 |
|
|
|
660.4 |
|
|
|
3.7 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
total loans
|
|
|
13,928.5 |
|
|
|
12,923.1 |
|
|
|
11,086.5 |
|
|
|
7.8 |
% |
|
|
25.6 |
% |
*
Monthly-end balance as of Dec. 09.
(1)
Average
daily balance.
(2)
Includes Work Out Unit, other banking and BCP Bolivia.
Source:
BCP
|
|
It is
important to note the following with regard to the evolution within the two
banking businesses:
|
·
|
The
Corporate Banking portfolio reported the highest quarterly growth
registered in the year (+11.8%), primarily due to significant mid-term
financing that consolidated significant expansion of 27.6%
YoY.
|
|
·
|
Middle-Market
Banking portfolio registered a slight increase of 2% QoQ that was
equivalent to US$50 million; this improvement was due primarily to
mid-term and sales financing operations. Nevertheless, a final yearly
review indicates that Middle-Market Banking’s portfolio increased a very
strong 34.6%.
|
|
·
|
Within
the Retail Banking segment, QoQ and YoY grew was most significant in the
SME-Business and Mortgage segments, which grew 10.1% and 6.6% QoQ and
28.3% and 20.5% YoY, respectively.
|
|
·
|
Finally,
Edyficar’s loan portfolio continued to increase throughout 2010 to total
US$ 333.3 million at the end of the year. This represented a QoQ increase
of 10.3%.
|
If we
look at loan evolution by currency type, it is evident that both portfolios
expanded QoQ and YoY. Nevertheless, the foreign currency (FC) portfolio reported
the highest growth.
Average
Daily Balances
|
|
Domestic Currency Loans (1)
|
|
|
Foreign Currency Loans (1)
|
|
|
|
(Nuevos Soles million)
|
|
|
(US$ million)
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
TaT
|
|
|
AaA
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
TaT
|
|
|
AaA
|
|
Wholesale
Banking
|
|
|
5,069.6 |
|
|
|
5,052.1 |
|
|
|
4,706.6 |
|
|
|
0.3 |
% |
|
|
7.7 |
% |
|
|
5,848.4 |
|
|
|
5,262.1 |
|
|
|
4,263.3 |
|
|
|
11.1 |
% |
|
|
37.2 |
% |
-
Corporate
|
|
|
3,443.7 |
|
|
|
3,475.6 |
|
|
|
3,535.5 |
|
|
|
-0.9 |
% |
|
|
-2.6 |
% |
|
|
3,863.4 |
|
|
|
3,312.0 |
|
|
|
2,764.4 |
|
|
|
16.6 |
% |
|
|
39.8 |
% |
-
Middle Market
|
|
|
1,625.9 |
|
|
|
1,576.6 |
|
|
|
1,171.0 |
|
|
|
3.1 |
% |
|
|
38.8 |
% |
|
|
1,985.0 |
|
|
|
1,950.1 |
|
|
|
1,499.0 |
|
|
|
1.8 |
% |
|
|
32.4 |
% |
Retail
Banking
|
|
|
8,946.6 |
|
|
|
8,258.6 |
|
|
|
7,172.3 |
|
|
|
8.3 |
% |
|
|
24.7 |
% |
|
|
2,001.7 |
|
|
|
1,873.7 |
|
|
|
1,799.7 |
|
|
|
6.8 |
% |
|
|
11.2 |
% |
-
SME + Business
|
|
|
3,228.1 |
|
|
|
2,876.7 |
|
|
|
2,442.1 |
|
|
|
12.2 |
% |
|
|
32.2 |
% |
|
|
650.7 |
|
|
|
606.3 |
|
|
|
557.1 |
|
|
|
7.3 |
% |
|
|
16.8 |
% |
-
Mortgages
|
|
|
2,378.8 |
|
|
|
2,240.8 |
|
|
|
1,826.3 |
|
|
|
6.2 |
% |
|
|
30.3 |
% |
|
|
1,023.5 |
|
|
|
953.7 |
|
|
|
920.2 |
|
|
|
7.3 |
% |
|
|
11.2 |
% |
-
Consumer
|
|
|
1,956.2 |
|
|
|
1,830.5 |
|
|
|
1,657.7 |
|
|
|
6.9 |
% |
|
|
18.0 |
% |
|
|
254.4 |
|
|
|
245.0 |
|
|
|
255.5 |
|
|
|
3.8 |
% |
|
|
-0.4 |
% |
-
Credit Cards
|
|
|
1,383.5 |
|
|
|
1,310.6 |
|
|
|
1,246.3 |
|
|
|
5.6 |
% |
|
|
11.0 |
% |
|
|
73.2 |
|
|
|
68.6 |
|
|
|
67.0 |
|
|
|
6.6 |
% |
|
|
9.2 |
% |
Edyficar
|
|
|
900.9 |
|
|
|
810.8 |
|
|
|
693.1 |
* |
|
|
11.1 |
% |
|
|
30.0 |
% |
|
|
13.0 |
|
|
|
12.7 |
|
|
|
14.6 |
* |
|
|
1.9 |
% |
|
|
-11.2 |
% |
Others
(2)
|
|
|
165.2 |
|
|
|
167.4 |
|
|
|
138.7 |
|
|
|
-1.3 |
% |
|
|
19.1 |
% |
|
|
703.3 |
|
|
|
675.3 |
|
|
|
612.4 |
|
|
|
4.1 |
% |
|
|
14.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
total loans
|
|
|
15,082.3 |
|
|
|
14,288.9 |
|
|
|
12,710.8 |
|
|
|
5.6 |
% |
|
|
18.7 |
% |
|
|
8,566.3 |
|
|
|
7,823.8 |
|
|
|
6,690.1 |
|
|
|
9.5 |
% |
|
|
28.0 |
% |
*
Monthly-end balance as of Dec. 09.
(1) Average daily
balance.
(2)
Includes Work Out Unit, other banking and BCP Bolivia.
Source:
BCP
The
expansion in the FC portfolio is due to significant loan growth in Wholesale
Banking portfolio. As we have already mentioned, this situation is attributable
to a weak US dollar and lower interest rates on FC loans. 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 professionals working in this area are well prepared to seek out adequate
market coverage.
Loan
growth in the local currency (LC) portfolio is primarily attributable to an
increase in Retail loans, particularly to the SME-Business and Mortgage
segments, which grew 32.2% and 30.3% YoY, respectively.
Edyficar’s
portfolio, which is still concentrated in local currency, grew 11.1% QoQ inn
4Q10 versus 8.0% in 3Q10.
Market
Share
At the
end of November, BCP continued to be the market leader with a 31.5% market
share, which is more than 10 percentage points above its closest
competitor. This not only makes BCP the best positioned bank but also
shows the growth in market share experimented in all segments. In this context,
Corporate Banking and Middle-Market Banking boasted market shares of 47% and 33%
respectively, which tops the figures obtained at the end of September 2010.
Within Retail Banking, a slight increase is apparent in each of the segments and
products. We would also like to point out the mortgage segment’s share has
topped 34% consistently throughout the year.
Dollarization
FC
portfolio’s participation in the total portfolio increased QoQ and YoY to total
61.8% at the end of 2010. This rise is closely tied to significant yearly
expansion in the Wholesale Banking Portfolio, whose loans are mostly
FC-denominated.
II.2
Deposits and Mutual Funds
Deposits
grew 9.1% QoQ and 18.0% YoY and continue to be BCP’s primary funding source.
Market recovery and our clients’ desire for higher yields generated a
significant increase of 8.1% QoQ and 13.3% YoY in mutual funds.
Deposits and obligations
|
|
Quarter
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Non-interest
bearing deposits
|
|
|
4,203,023 |
|
|
|
3,918,653 |
|
|
|
3,261,009 |
|
|
|
7.3 |
% |
|
|
28.9 |
% |
Demand
deposits
|
|
|
1,394,651 |
|
|
|
1,338,403 |
|
|
|
1,179,634 |
|
|
|
4.2 |
% |
|
|
18.2 |
% |
Saving
deposits
|
|
|
4,244,940 |
|
|
|
3,953,997 |
|
|
|
3,539,917 |
|
|
|
7.4 |
% |
|
|
19.9 |
% |
Time
deposits
|
|
|
5,872,455 |
|
|
|
5,267,355 |
|
|
|
5,361,410 |
|
|
|
11.5 |
% |
|
|
9.5 |
% |
Severance
indemnity deposits (CTS)
|
|
|
1,313,122 |
|
|
|
1,127,933 |
|
|
|
1,069,267 |
|
|
|
16.4 |
% |
|
|
22.8 |
% |
Interest
payable
|
|
|
41,627 |
|
|
|
36,026 |
|
|
|
54,572 |
|
|
|
15.5 |
% |
|
|
-23.7 |
% |
Total
customer deposits
|
|
|
17,069,818 |
|
|
|
15,642,367 |
|
|
|
14,465,809 |
|
|
|
9.1 |
% |
|
|
18.0 |
% |
Mutual
funds in Perú
|
|
|
2,369,634 |
|
|
|
2,164,067 |
|
|
|
2,042,159 |
|
|
|
9.5 |
% |
|
|
16.0 |
% |
Mutual
funds in Bolivia
|
|
|
102,586 |
|
|
|
123,312 |
|
|
|
139,709 |
|
|
|
-16.8 |
% |
|
|
-26.6 |
% |
Total
customer funds
|
|
|
19,542,038 |
|
|
|
17,929,746 |
|
|
|
16,647,677 |
|
|
|
9.0 |
% |
|
|
17.4 |
% |
If we
look at deposit evolution by deposit type, growth in 4Q was led by time deposits
(+11.5%) given that corporate clients in the Wholesale Banking segment
maintained higher FC balances. Additionally, an increase was reported
in savings deposits (+7.4%) and CTS accounts (+16.4%) mainly from deposits
captured by Retail Banking as a result of intensive campaigns. Demand deposits
increased 4.2% QoQ, led by Middle-Market Banking clients.
Other
funding sources at BCP that reported significant increase were due to banks and
correspondents (+14.6% TaT), which is attributable to a syndicated loan that was
taken out in the month of October to maintain the matching of assets and
liabilities especially in the FC portfolio where there is a relative shortage
due to BCRP’s legal reserves requirements and a higher level of deposit
de-dollarization.
This
evolution in funding sources represents BCP’s strong capacity to capture funds,
which helps us ensure future portfolio growth and maintain market leadership.
The aforementioned went hand-in-hand with a funding cost of 2.10%, which is
similar to the 2.11% obtained in 3Q10, but does reflect increased funding cost
of 2H10 given the stronger growth of more expensive funding sources, compared to
the 1H10.
BCP’s
mutual funds reported significant 8.1% growth in the last quarter. This
improvement is mainly attributable to growth in Credifondo’s funds under
management (+9.5% QoQ), which is in turn due the positive evolution of
international markets and the fact that the Peruvian economy remains dynamic. An
additional factor in this success is linked to the constant sales campaigns
undertaken by this segment. Credifondo continues to be market leader
in terms of the volume managed and the number of affiliates, which reported
42.4% and 33.1%, respectively.
Market
Share in Deposits
At the
end of December, BCP continued to lead the market for deposits with a
34.4% share, topping 3Q10's figure (34.1%) while outpacing
the closest competitor by 14 percentage points. It is important to note the
increase in the market share for FC deposits, which went from 35.6% in September
to 37.4% at year-end. This last factor was due primarily to higher balances
in FC time deposits in the Wholesale Banking segment.
Market share by type of deposit and currency
|
|
|
|
Demand
deposits
|
|
|
Saving
deposits
|
|
|
Time
deposits
|
|
|
Severance
indemnity
|
|
LC
|
|
|
38.9 |
% |
|
|
36.9 |
% |
|
|
27.0 |
% |
|
|
39.5 |
% |
FC
|
|
|
42.4 |
% |
|
|
40.5 |
% |
|
|
32.5 |
% |
|
|
55.5 |
% |
LC:
Local Currency
|
|
FC:
Foreign Currency
|
|
BCP
continues to hold a solid lead in all products in both LC and FC deposits. This
quarter the highest increases in market shares for deposits were
reported for FC time deposits (28.5% in 3Q10) and local currency CTS
deposits (37.9% in 3Q10).
Dollarization
At the
end of 4Q10, a slight increase in the percentage of FC deposits was evident. A
YoY analysis shows that deposits have undergone significant de-dollarization-
reflected in the percentage of LC deposits, which increased from 37.9% to 47.5%
at the end of 2010. This is due to the fact that confidence in the local
currency has risen especially considered that domestic currency appreciated 2.8%
against the US dollar in 2010.
II.3 Net
Interest Income
NII
grew 5.1% QoQ while the interest-earning assets portfolio expanded 11.7%, which
caused NIM to drop from 4.8% to 4.5%.
Net interest income
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec. 10
|
|
|
Dec. 09
|
|
|
Dec. 10 / Dec. 09
|
|
Interest
income
|
|
|
368,460 |
|
|
|
345,937 |
|
|
|
301,319 |
|
|
|
6.5 |
% |
|
|
22.3 |
% |
|
|
1,331,867 |
|
|
|
1,204,914 |
|
|
|
10.5 |
% |
Interest
on loans
|
|
|
330,701 |
|
|
|
309,818 |
|
|
|
274,340 |
|
|
|
6.7 |
% |
|
|
20.5 |
% |
|
|
1,214,987 |
|
|
|
1,057,384 |
|
|
|
14.9 |
% |
Interest
and dividends on investments
|
|
|
59 |
|
|
|
33 |
|
|
|
43 |
|
|
|
78.8 |
% |
|
|
37.2 |
% |
|
|
3,591 |
|
|
|
3,131 |
|
|
|
14.7 |
% |
Interest
on deposits with banks
|
|
|
26,823 |
|
|
|
1,643 |
|
|
|
2,327 |
|
|
|
1532.6 |
% |
|
|
1052.7 |
% |
|
|
31,881 |
|
|
|
13,775 |
|
|
|
131.4 |
% |
Interest
on trading securities
|
|
|
12,431 |
|
|
|
21,035 |
|
|
|
22,008 |
|
|
|
-40.9 |
% |
|
|
-43.5 |
% |
|
|
72,815 |
|
|
|
109,723 |
|
|
|
-33.6 |
% |
Other
interest income
|
|
|
(1,554 |
) |
|
|
13,408 |
|
|
|
2,601 |
|
|
|
-111.6 |
% |
|
|
-159.7 |
% |
|
|
8,593 |
|
|
|
20,901 |
|
|
|
-58.9 |
% |
Interest
expense
|
|
|
113,927 |
|
|
|
103,663 |
|
|
|
90,086 |
|
|
|
9.9 |
% |
|
|
26.5 |
% |
|
|
387,233 |
|
|
|
406,697 |
|
|
|
-4.8 |
% |
Interest
on deposits
|
|
|
40,152 |
|
|
|
36,706 |
|
|
|
49,258 |
|
|
|
9.4 |
% |
|
|
-18.5 |
% |
|
|
120,128 |
|
|
|
269,361 |
|
|
|
-55.4 |
% |
Interest
on borrowed funds
|
|
|
48,953 |
|
|
|
40,430 |
|
|
|
6,681 |
|
|
|
21.1 |
% |
|
|
632.7 |
% |
|
|
130,013 |
|
|
|
27,925 |
|
|
|
365.6 |
% |
Interest
on bonds and subordinated note
|
|
|
9,742 |
|
|
|
10,648 |
|
|
|
20,916 |
|
|
|
-8.5 |
% |
|
|
-53.4 |
% |
|
|
104,760 |
|
|
|
67,929 |
|
|
|
54.2 |
% |
Other
interest expense
|
|
|
15,081 |
|
|
|
15,879 |
|
|
|
13,231 |
|
|
|
-5.0 |
% |
|
|
14.0 |
% |
|
|
32,332 |
|
|
|
41,482 |
|
|
|
-22.1 |
% |
Net
interest income
|
|
|
254,533 |
|
|
|
242,274 |
|
|
|
211,233 |
|
|
|
5.1 |
% |
|
|
20.5 |
% |
|
|
944,634 |
|
|
|
798,217 |
|
|
|
18.3 |
% |
Average
interest earning assets
|
|
|
22,500,740 |
|
|
|
20,147,428 |
|
|
|
16,826,904 |
|
|
|
11.7 |
% |
|
|
33.7 |
% |
|
|
19,832,358 |
|
|
|
16,579,634 |
|
|
|
19.6 |
% |
Net
interest margin*
|
|
|
4.52 |
% |
|
|
4.81 |
% |
|
|
5.02 |
% |
|
|
|
|
|
|
|
|
|
|
4.76 |
% |
|
|
4.81 |
% |
|
|
|
|
*Annualized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
quarterly evolution of NII shows 5.1% growth. This was attributable to a 6.7%
increase in interest on loans due to the significant loan growth, which was
however attenuated by the 9.9% increase QoQ in interest expenses as a result of
higher interests on due to banks (+21.1% QoQ) and deposits (+9.4% QoQ). The
latter is related to changes in the funding structure, particularly in terms of
needs for funding in US dollars abroad, as well as higher interest expenses due
to an increase in interest rates on time deposits and especially on FC time
deposits given the fact that BCR’s aggressive policy on legal reserves has made
this currency scarce.
Furthermore,
the reduction in other interest income was related to derivatives for trading,
which was the result of a scenario with devaluation of Nuevo Sol and higher swap
rates in Nuevos Soles during 4Q10 in contrast to a scenario with appreciation of
Nuevo Sol and lower swap rates in Nuevos Soles as such of 3Q10’s.
Accumulated
results showed a significantly better evolution reporting an 18.3% increase of
NII explained not only by a 10.5% rise in interest income but also by the 4.8%
reduction of interest expenses. Interest income grew mainly as an effect of
higher interest income on loans (+14.9%), which in turn was related to the loan
expansion achieved in 2010 (+23.8%). On the expenses side, the contraction
reported came mainly from the 55.4% reduction of interest expenses on deposits
that off set the higher expenses in interest on borrowed funds and bonds. It is
important to highlight that the decrease in interest on deposits was the result
of lower average interest rate in 2010 in comparison with the average rate in
2009 (1.03% vs 1.82%), hence even when the volume of deposits grew 18% in 2010
most of this increase came from demand deposits and savings, which earn very low
or null interests.
Consequent
with this evolution, NIM reported a drop from 4.8% to 4.5%. This decrease
was the effect of:
|
i) interest
income not growing at the same pace of interest-earning assets due to the
aforementioned re-composition of these assets in favor of lower yielding
assets (the sum of investments, deposits in BCRP and other banks expanded
+10.9%; while loans increased +7.8% and within loans, Wholesale Banking
portfolio with its lower margins reported higher growth than the other
segments); and
|
|
ii) interest
expense increasing in this 4Q as a result of a change in the funding
structure towards more expensive sources (with time deposits and borrowed
funds growing faster), all of which made NII increase only 5.1% QoQ, while
interest-earning assets grew 11.7%, causing a drop in
NIM.
|
Loan NIM
remained at levels similar to those seen in 3Q10, which is reflected in the fact
that NIM levels for different products have remained relatively
stable.
Despite
this quarterly evolution, the accumulated results for the year show that NIM has
been stable given that the different forces that act on it tended to cancel each
other out. As such, the NIM at year-end reflected the same margin obtained last
year of 4.8%.
Loan / Deposit
Ratio
Another
aspect that affects NIM’s evolution is our conservative policy to match assets
and liabilities in terms of currency and maturities, which implies incurring an
opportunity cost. In this regard, even when the aggregated ratio of
loan to deposits is 84.0%, there is significant growth in LC deposits while FC
deposit levels grew little, which is reflected in the loan-to-deposit ratio that
is currently 67.5% in LC and 98.9% in FC. This in turn translated into a need
for FC funds to finance portfolio growth while maintaining adequate matching. To
accomplish this, new issuances and loans are needed, which entail higher funding
costs than deposits. At the same time, this scenario generates a surplus of LC
deposits, which are invested in BCR instruments causing further downward
pressure on NIM given that interest income on investment is low and the tax
benefit that boosts the profitability of these instruments is not captured by
NIM.
II.4 Past
Due Portfolio and Provisions for Loan Losses
For
the second consecutive quarter, the past due ratio fell, situating at 1.46% (vs.
1.59% in 3Q10). This was attributable to a contraction in the past due loan
portfolio (-1.7% QoQ) and growth in total loans (+7.6% QoQ).
Provision for loan losses
|
|
Quarter
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Provisions
|
|
|
(56,171 |
) |
|
|
(59,018 |
) |
|
|
(50,554 |
) |
|
|
-4.8 |
% |
|
|
11.1 |
% |
Loan
loss recoveries
|
|
|
7,640 |
|
|
|
6,404 |
|
|
|
5,620 |
|
|
|
19.3 |
% |
|
|
35.9 |
% |
Net
provisions, for loan losses
|
|
|
(48,531 |
) |
|
|
(52,614 |
) |
|
|
(44,934 |
) |
|
|
-7.8 |
% |
|
|
8.0 |
% |
Total
loans
|
|
|
14,334,841 |
|
|
|
13,326,601 |
|
|
|
11,577,303 |
|
|
|
7.6 |
% |
|
|
23.8 |
% |
Reserve
for loan losses (RLL)
|
|
|
414,806 |
|
|
|
410,814 |
|
|
|
353,348 |
|
|
|
1.0 |
% |
|
|
17.4 |
% |
Charge-Off
amount
|
|
|
38,938 |
|
|
|
35,801 |
|
|
|
31,652 |
|
|
|
8.8 |
% |
|
|
23.0 |
% |
Past
due loans (PDL)
|
|
|
208,982 |
|
|
|
212,498 |
|
|
|
183,746 |
|
|
|
-1.7 |
% |
|
|
13.7 |
% |
PDL
/ Total loans
|
|
|
1.46 |
% |
|
|
1.59 |
% |
|
|
1.59 |
% |
|
|
|
|
|
|
|
|
Coverage
|
|
|
198.5 |
% |
|
|
193.3 |
% |
|
|
192.3 |
% |
|
|
|
|
|
|
|
|
During
4Q10, the past due ratio dropped significantly to 1.46%, which is 14 bps below
last quarter’s ratio (1.59%). This decline was reflected primarily in the past
due ratios for SME, Credit Cards, Consumer lending, Edyficar and Wholesale
Banking. It is also important to point out that the 90-day past due loan ratio
was also satisfactory at the end of 4Q10, when it reported 0.99% (vs. 0.97% in
3Q10).
If we
analyze the YoY evolution, it is evident that past due ratios year-to-year have
been similar given that the past due ratio at the end of 2009 was 1.59% whereas
the figure at the close of 2010 was 1.46%. The aforementioned was the
result of significant growth in total loans (+23.8%), which helped offset the
increase in the past due portfolio (+13.7%).
Provisions
expenses fell in 4Q10 (-7.8% QoQ) due to lower net provisions for reversals
(-4.8% QoQ) and an increase in the number of recoveries reported during the
quarter (+19.3% QoQ). Additionally, coverage for the past due portfolio was
198.5%, which is higher than the 193.3% reported in 3Q10 due to higher
provisions and a drop in the past due portfolio.
On the
other hand, net provisions increased 8.0% YoY. This is due to portfolio growth,
new product segmentation, and the Regulator’s decision to reactivate
pro-cyclical provisions in 3Q10.
II.5 Non
Financial Income
Banking
service fees took center stage this year in terms of non financial income. These
levels continued to be high, as seen initially in 3Q10, and reflect accumulated
yearly growth of 25.5%. Nevertheless, total non financial
income reported only 9.8% accumulated growth for the year due to strong
difference in the extraordinary results for securities sales.
Non financial income
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec. 10
|
|
|
Dec. 09
|
|
|
Dec. 10 / Dec. 09
|
|
Fee
income
|
|
|
120,136 |
|
|
|
120,839 |
|
|
|
109,546 |
|
|
|
-0.6 |
% |
|
|
9.7 |
% |
|
|
461,775 |
|
|
|
368,067 |
|
|
|
25.5 |
% |
Net
gain on foreign exchange transactions
|
|
|
28,909 |
|
|
|
26,354 |
|
|
|
23,430 |
|
|
|
9.7 |
% |
|
|
23.4 |
% |
|
|
104,361 |
|
|
|
93,462 |
|
|
|
11.7 |
% |
Net
gain on sales of securities
|
|
|
2,264 |
|
|
|
18,987 |
|
|
|
9,185 |
|
|
|
-88.1 |
% |
|
|
-75.4 |
% |
|
|
51,139 |
|
|
|
101,349 |
|
|
|
-49.5 |
% |
Other
income
|
|
|
8,603 |
|
|
|
1,168 |
|
|
|
2,816 |
|
|
|
636.6 |
% |
|
|
205.5 |
% |
|
|
17,367 |
|
|
|
15,067 |
|
|
|
15.3 |
% |
Total
non financial income
|
|
|
159,912 |
|
|
|
167,348 |
|
|
|
144,977 |
|
|
|
-4.4 |
% |
|
|
10.3 |
% |
|
|
634,642 |
|
|
|
577,945 |
|
|
|
9.8 |
% |
Banking
service fees reported high levels similar to those seen in the previous quarter;
nevertheless, some items reported noteworthy increases, including Miscellaneous
Accounts (+3.8% QoQ), which is fundamentally related to higher fees for Saving
Accounts & Debit Cards, and Credit Cards (+4.9% QoQ). This offset
contractions experimented in other items such as Corporate Finance fees, which
reported record levels in 3Q10. In annual terms, fees rose a significant
25.5%.
The
aforementioned, coupled with higher net gains on FX transactions, which rose 23%
QoQ due to an increase in the transactions volume during the holiday period at
year-end, and reported an annual growth of 11.7% in accumulated terms, helped
offset the impact generated by a drop in net earnings on sales of
securities.
It is
important to remember that the extraordinary income on sales of securities
recorded in 3Q and 2Q, which were associated with the Peruvian Government’s move
to repurchase bonds denominated in Euros, were even lower than the extraordinary
income registered the previous year. This distorts the evolution of traditional
non-financial income, which was actually quite outstanding. Thus, and despite
the aforementioned distortion, non financial income grew 9.8% in
2010.
Banking Fee Income
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
4Q10 / 3Q10
|
|
|
4Q10 / 4Q09
|
|
|
Dec. 10
|
|
|
Dec. 09
|
|
|
Dec. 10 / Dec. 09
|
|
Miscellaneous
Accounts*
|
|
|
32,024 |
|
|
|
30,863 |
|
|
|
26,591 |
|
|
|
3.8 |
% |
|
|
20.4 |
% |
|
|
118,964 |
|
|
|
93,009 |
|
|
|
27.9 |
% |
Contingents
|
|
|
7,445 |
|
|
|
7,113 |
|
|
|
5,611 |
|
|
|
4.7 |
% |
|
|
32.7 |
% |
|
|
27,167 |
|
|
|
15,781 |
|
|
|
72.1 |
% |
Payments
and Collections
|
|
|
15,900 |
|
|
|
15,376 |
|
|
|
14,025 |
|
|
|
3.4 |
% |
|
|
13.4 |
% |
|
|
59,786 |
|
|
|
51,022 |
|
|
|
17.2 |
% |
Drafts
and Transfers
|
|
|
7,105 |
|
|
|
7,321 |
|
|
|
6,883 |
|
|
|
-2.9 |
% |
|
|
3.2 |
% |
|
|
27,764 |
|
|
|
24,146 |
|
|
|
15.0 |
% |
Credit
Cards
|
|
|
16,029 |
|
|
|
15,284 |
|
|
|
14,155 |
|
|
|
4.9 |
% |
|
|
13.2 |
% |
|
|
59,792 |
|
|
|
47,862 |
|
|
|
24.9 |
% |
Others
|
|
|
41,632 |
|
|
|
44,882 |
|
|
|
42,282 |
|
|
|
-7.2 |
% |
|
|
-1.5 |
% |
|
|
168,303 |
|
|
|
136,248 |
|
|
|
23.5 |
% |
Total
Fee Income
|
|
|
120,136 |
|
|
|
120,839 |
|
|
|
109,546 |
|
|
|
-0.6 |
% |
|
|
9.7 |
% |
|
|
461,775 |
|
|
|
368,067 |
|
|
|
25.5 |
% |
*
Saving Accounts, Current Accounts and Debit Card.
The
positive evolution of fees is also related to the behavior of banking
transactions, which experienced an 11.6% increase QoQ and 18.7% YoY. In
disaggregated terms, electronic channels and new channels such as cell-phone
banking contributed significantly to this growth. It is important to point out
that the volume of transactions made through alternative electronic channels
continues to rise as clients migrate from traditional teller services. In this
context, the volume of teller transactions fell -1.5% this quarter and -7.3% in
yearly terms. The impact of this evolution is reflected in the transaction
costs, which boost the margins for these operations.
N° de Transactions per channel
|
|
Quarter
|
|
|
Change %
|
|
|
|
Average 4Q10
|
|
|
Average 3Q10
|
|
|
Average 4Q09
|
|
|
4Q10 / 3Q10
|
|
|
4Q10 / 4Q09
|
|
Teller
|
|
|
9,949,522 |
|
|
|
10,105,034 |
|
|
|
10,733,475 |
|
|
|
-1.5 |
% |
|
|
-7.3 |
% |
ATMs
Via BCP
|
|
|
10,312,343 |
|
|
|
8,957,045 |
|
|
|
8,193,738 |
|
|
|
15.1 |
% |
|
|
25.9 |
% |
Balance
Inquiries
|
|
|
3,468,512 |
|
|
|
2,931,377 |
|
|
|
2,593,456 |
|
|
|
18.3 |
% |
|
|
33.7 |
% |
Telephone
Banking
|
|
|
1,752,561 |
|
|
|
1,592,501 |
|
|
|
1,641,981 |
|
|
|
10.1 |
% |
|
|
6.7 |
% |
Internet
Banking Via BCP
|
|
|
12,815,523 |
|
|
|
11,458,877 |
|
|
|
10,466,538 |
|
|
|
11.8 |
% |
|
|
22.4 |
% |
Agente
BCP
|
|
|
6,656,935 |
|
|
|
5,383,892 |
|
|
|
4,614,103 |
|
|
|
23.6 |
% |
|
|
44.3 |
% |
Telecrédito
|
|
|
5,397,323 |
|
|
|
4,725,407 |
|
|
|
4,424,750 |
|
|
|
14.2 |
% |
|
|
22.0 |
% |
Mobile
banking
|
|
|
399,498 |
|
|
|
303,147 |
|
|
|
152,191 |
|
|
|
31.8 |
% |
|
|
162.5 |
% |
Direct
Debit
|
|
|
450,729 |
|
|
|
417,399 |
|
|
|
401,154 |
|
|
|
8.0 |
% |
|
|
12.4 |
% |
Points
of Sale P.O.S.
|
|
|
4,768,425 |
|
|
|
4,273,894 |
|
|
|
3,911,271 |
|
|
|
11.6 |
% |
|
|
21.9 |
% |
Other
ATMs network
|
|
|
351,283 |
|
|
|
333,604 |
|
|
|
314,287 |
|
|
|
5.3 |
% |
|
|
11.8 |
% |
Total
transactions
|
|
|
56,322,654 |
|
|
|
50,482,176 |
|
|
|
47,446,943 |
|
|
|
11.6 |
% |
|
|
18.7 |
% |
Source:
BCP
BCP’s
distribution channels (only in Peru) continue to grow. In 4Q10, the total number
of points of contact grew 4.4%. This expansion was concentrated in growth in the
number of BCP Agents, which continues to demonstrate the highest growth
potential (+4.7% QoQ). Nevertheless, ATM growth remains high at 4.5% and new
branch openings are once again on the rise. A YoY analysis shows that the total
number of points of contact has increased by more than 800, which represents an
expansion of 21%.
|
|
Balance as of
|
|
|
Change %
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
Branches
|
|
|
327 |
|
|
|
324 |
|
|
|
334 |
|
|
|
0.9 |
% |
|
|
-2.1 |
% |
ATMs
|
|
|
1,159 |
|
|
|
1,109 |
|
|
|
996 |
|
|
|
4.5 |
% |
|
|
16.4 |
% |
Agentes
BCP
|
|
|
3,513 |
|
|
|
3,354 |
|
|
|
2,801 |
|
|
|
4.7 |
% |
|
|
25.4 |
% |
Total
|
|
|
4,999 |
|
|
|
4,787 |
|
|
|
4,131 |
|
|
|
4.4 |
% |
|
|
21.0 |
% |
Source: BCP
II.6
Operating Expenses and Efficiency
After
three consecutive quarters of improvements, the increase in spending in 4Q10 led
to an increase in the efficiency ratio, which rose to 50.9%. This level
represents the highest point of the new range within which the efficiency ratio
should move after implementing a series of measures.
Operating expenses
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec. 10
|
|
|
Dec. 09
|
|
|
Dec. 10 / Dec. 09
|
|
Salaries
and employees benefits
|
|
|
105,187 |
|
|
|
95,404 |
|
|
|
89,486 |
|
|
|
10.3 |
% |
|
|
17.5 |
% |
|
|
389,997 |
|
|
|
328,469 |
|
|
|
18.7 |
% |
Administrative,
general and tax expenses
|
|
|
81,579 |
|
|
|
67,549 |
|
|
|
79,622 |
|
|
|
20.8 |
% |
|
|
2.5 |
% |
|
|
282,779 |
|
|
|
266,363 |
|
|
|
6.2 |
% |
Depreciation
and amortizacion
|
|
|
18,796 |
|
|
|
17,392 |
|
|
|
16,153 |
|
|
|
8.1 |
% |
|
|
16.4 |
% |
|
|
69,448 |
|
|
|
58,709 |
|
|
|
18.3 |
% |
Other
expenses
|
|
|
9,251 |
|
|
|
4,406 |
|
|
|
12,695 |
|
|
|
110.0 |
% |
|
|
-27.1 |
% |
|
|
25,853 |
|
|
|
38,882 |
|
|
|
-33.5 |
% |
Total
operating expenses
|
|
|
214,813 |
|
|
|
184,751 |
|
|
|
197,956 |
|
|
|
16.3 |
% |
|
|
8.5 |
% |
|
|
768,077 |
|
|
|
692,423 |
|
|
|
10.9 |
% |
Efficiency
ratio
|
|
|
50.9 |
% |
|
|
46.3 |
% |
|
|
53.8 |
% |
|
|
|
|
|
|
|
|
|
|
49.1 |
% |
|
|
51.9 |
% |
|
|
|
|
Operating
expenses demonstrated a significant increase this quarter, expanding 16.3% QoQ
due to the seasonal effects which in the past have shown growth of around 19% in
the 4thQs when
compared to the average expenses of the 3 first quarters. This strong increase
is seen in salaries and employee benefits as well as administrative expenses and
others.
The
increase in salaries and employee benefits is due in part to higher variable
remuneration and incentive compensation programs, which correspond to strong
portfolio growth this quarter as well as increases in salary levels due to
market competitive pressures, all of which led to a quarterly expansion of
10.3%.
Administrative
expenses grew 20% QoQ due to higher expenses for marketing, consultancy, legal
expenses and systems, which are affected by seasonal components present at the
end of each year.
Next, we
will provide details on administrative expenses and their quarterly
variations:
Administrative Expenses
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
US$ (000)
|
|
4Q10
|
|
|
%
|
|
|
3Q10
|
|
|
%
|
|
|
4Q09
|
|
|
%
|
|
|
4Q10 / 3Q10
|
|
|
4Q10 / 4Q09
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
2010 / 2009
|
|
Marketing
|
|
|
11,291 |
|
|
|
13.8 |
% |
|
|
8,815 |
|
|
|
12.0 |
% |
|
|
11,152 |
|
|
|
14.0 |
% |
|
|
28.1 |
% |
|
|
1.2 |
% |
|
|
33,547 |
|
|
|
30,473 |
|
|
|
10.1 |
% |
Systems
|
|
|
10,384 |
|
|
|
12.7 |
% |
|
|
9,270 |
|
|
|
11.8 |
% |
|
|
8,351 |
|
|
|
10.5 |
% |
|
|
12.0 |
% |
|
|
24.3 |
% |
|
|
37,000 |
|
|
|
34,563 |
|
|
|
7.0 |
% |
Transport
|
|
|
6,213 |
|
|
|
7.6 |
% |
|
|
6,057 |
|
|
|
8.1 |
% |
|
|
6,342 |
|
|
|
8.0 |
% |
|
|
2.6 |
% |
|
|
-2.0 |
% |
|
|
23,745 |
|
|
|
21,995 |
|
|
|
8.0 |
% |
Maintenance
|
|
|
3,579 |
|
|
|
4.4 |
% |
|
|
2,971 |
|
|
|
3.7 |
% |
|
|
5,272 |
|
|
|
6.6 |
% |
|
|
20.5 |
% |
|
|
-32.1 |
% |
|
|
11,755 |
|
|
|
13,767 |
|
|
|
-14.6 |
% |
Communications
|
|
|
4,337 |
|
|
|
5.3 |
% |
|
|
3,857 |
|
|
|
7.0 |
% |
|
|
3,575 |
|
|
|
4.5 |
% |
|
|
12.4 |
% |
|
|
21.3 |
% |
|
|
16,539 |
|
|
|
13,022 |
|
|
|
27.0 |
% |
Consulting
|
|
|
4,928 |
|
|
|
6.0 |
% |
|
|
3,076 |
|
|
|
6.6 |
% |
|
|
7,344 |
|
|
|
9.2 |
% |
|
|
60.2 |
% |
|
|
-32.9 |
% |
|
|
14,729 |
|
|
|
21,030 |
|
|
|
-30.0 |
% |
Others
|
|
|
21,958 |
|
|
|
26.9 |
% |
|
|
17,621 |
|
|
|
28.4 |
% |
|
|
21,457 |
|
|
|
26.9 |
% |
|
|
24.6 |
% |
|
|
2.3 |
% |
|
|
78,794 |
|
|
|
77,871 |
|
|
|
1.2 |
% |
Taxes
and contributions
|
|
|
7,946 |
|
|
|
9.7 |
% |
|
|
6,635 |
|
|
|
10.3 |
% |
|
|
5,813 |
|
|
|
7.3 |
% |
|
|
19.8 |
% |
|
|
36.7 |
% |
|
|
28,283 |
|
|
|
23,877 |
|
|
|
18.5 |
% |
Other
subsidiaries and eliminations, net
|
|
|
10,943 |
|
|
|
13.4 |
% |
|
|
9,247 |
|
|
|
12.1 |
% |
|
|
10,318 |
|
|
|
13.0 |
% |
|
|
18.3 |
% |
|
|
6.1 |
% |
|
|
38,388 |
|
|
|
29,765 |
|
|
|
29.0 |
% |
Total
Administrative Expenses
|
|
|
81,579 |
|
|
|
100.0 |
% |
|
|
67,549 |
|
|
|
100.0 |
% |
|
|
79,622 |
|
|
|
100.0 |
% |
|
|
20.8 |
% |
|
|
2.5 |
% |
|
|
282,779 |
|
|
|
266,363 |
|
|
|
6.2 |
% |
II.7
Shareholders’ Equity and Regulatory Capital
The
significant expansion in loans increased capital requirements to cover credit
risk capital requirement, which in turn translated into a BIS ratio of 12.8%.
Additionally, ROAE experienced a contraction this quarter due to lower earnings
and growth in net shareholders’ equity.
Shareholders' equity
|
|
Quarter
|
|
|
Change %
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
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
|
|
|
157,564 |
|
|
|
131,056 |
|
|
|
106,708 |
|
|
|
20.2 |
% |
|
|
47.7 |
% |
Retained
earnings
|
|
|
187,143 |
|
|
|
187,143 |
|
|
|
115,922 |
|
|
|
0.0 |
% |
|
|
61.4 |
% |
Income
for the year
|
|
|
476,316 |
|
|
|
374,750 |
|
|
|
397,378 |
|
|
|
27.1 |
% |
|
|
19.9 |
% |
Net
shareholders' equity
|
|
|
1,992,545 |
|
|
|
1,864,471 |
|
|
|
1,675,533 |
|
|
|
6.9 |
% |
|
|
18.9 |
% |
Return
on average equity (ROAE)
|
|
|
21.1 |
% |
|
|
31.3 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
A QoQ
analysis indicates that net shareholders’ equity increased 6.9% QoQ, which is
primarily attributable to higher income for the year (+27.1%) and to a lesser
extent to the increase in unrealized earnings (+20.2%) in 4Q10.
With
regard ROAE, a slight QoQ decline is evident in 4Q10 due to lower quarterly
earnings (-26.7% QoQ) and the aforementioned increase in net shareholders’
equity. Nevertheless, ROAE remained at a good level of 21.1% in 4Q10. The annual
evolution is evident in the ROAE of 26.8% reported for 2010, which is slightly
higher than 2009’s figure (26.6%).
Risk
weighted assets (RWA) grew 7.0% QoQ due mainly to an increase in RWA for credit
risk (+7.5%). This is in line with 7.6% QoQ growth in total loans.
During
4Q10, Regulatory Capital remained relatively stable, demonstrating a slight 1.0%
decline QoQ due primarily to:
|
i)
higher investment in subsidiaries (after unrealized earnings) (+6.3%)
and
|
|
ii)
a decline in the subordinated debt level (-1.8%) due to drop in the
calculated value of regulatory capital. These factors were offset by
higher provisions (+7.5%) for loan
growth.
|
In this
context, the BIS ratio was 12.8% at the end of 4Q10, which is slightly lower
than 3Q10’s figure (13.9%).
Regulatory Capital and Capital Adequacy Ratios
|
|
Balance as of
|
|
|
Change %
|
|
US$ (000)
|
|
Dec 10
|
|
|
Sep 10
|
|
|
Dec 09
|
|
|
Dec 10 / Sep 10
|
|
|
Dec 10 / Dic 09
|
|
Capital
Stock
|
|
|
910,551 |
|
|
|
917,739 |
|
|
|
771,034 |
|
|
|
-0.8 |
% |
|
|
18.1 |
% |
Legal
and Other capital reserves
|
|
|
473,177 |
|
|
|
476,912 |
|
|
|
459,881 |
|
|
|
-0.8 |
% |
|
|
2.9 |
% |
Accumulated
earnings with capitalization agreement
|
|
|
- |
|
|
|
- |
|
|
|
113,997 |
|
|
|
- |
|
|
|
-100.0 |
% |
Loan
loss reserves (1)
|
|
|
180,292 |
|
|
|
167,661 |
|
|
|
148,355 |
|
|
|
7.5 |
% |
|
|
21.5 |
% |
Perpetual
subordinated debt
|
|
|
250,000 |
|
|
|
250,000 |
|
|
|
250,000 |
|
|
|
0.0 |
% |
|
|
0.0 |
% |
Subordinated
Debt
|
|
|
440,614 |
|
|
|
448,728 |
|
|
|
426,264 |
|
|
|
-1.8 |
% |
|
|
3.4 |
% |
Unrealized
profit (loss)
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Investment
in subsidiaries and others, net of unrealized profit
|
|
|
(247,031 |
) |
|
|
(232,388 |
) |
|
|
(226,319 |
) |
|
|
6.3 |
% |
|
|
9.2 |
% |
Goodwill
|
|
|
(43,461 |
) |
|
|
(43,805 |
) |
|
|
(54,933 |
) |
|
|
-0.8 |
% |
|
|
-20.9 |
% |
Total
Regulatory Capital
|
|
|
1,964,142 |
|
|
|
1,984,848 |
|
|
|
1,888,278 |
|
|
|
-1.0 |
% |
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier
1 (2)
|
|
|
1,558,944 |
|
|
|
1,560,999 |
|
|
|
1,449,953 |
|
|
|
-0.1 |
% |
|
|
7.5 |
% |
Tier
2 (3) + Tier 3 (4)
|
|
|
405,197 |
|
|
|
423,850 |
|
|
|
438,325 |
|
|
|
-4.4 |
% |
|
|
-7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
risk-weighted assets
|
|
|
15,295,727 |
|
|
|
14,290,912 |
|
|
|
13,007,788 |
|
|
|
7.0 |
% |
|
|
17.6 |
% |
Market
risk-weighted assets (5)
|
|
|
381,103 |
|
|
|
410,725 |
|
|
|
681,671 |
|
|
|
-7.2 |
% |
|
|
-44.1 |
% |
Credit
risk-weighted assets
|
|
|
14,406,737 |
|
|
|
13,396,056 |
|
|
|
11,868,364 |
|
|
|
7.5 |
% |
|
|
21.4 |
% |
Operational
risk-weighted assets (6)
|
|
|
507,887 |
|
|
|
484,132 |
|
|
|
457,752 |
|
|
|
4.9 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
risk capital requirement (5)
|
|
|
37,348 |
|
|
|
40,251 |
|
|
|
64,759 |
|
|
|
-7.2 |
% |
|
|
-42.3 |
% |
Credit
risk capital requirement
|
|
|
1,411,860 |
|
|
|
1,312,813 |
|
|
|
1,127,495 |
|
|
|
7.5 |
% |
|
|
25.2 |
% |
Operational
risk capital requirement (6)
|
|
|
49,773 |
|
|
|
47,445 |
|
|
|
43,486 |
|
|
|
4.9 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIS
ratio (7)
|
|
|
12.8 |
% |
|
|
13.9 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
Risk-weighted
assets (8) / Regulatory Capital
|
|
|
7.79 |
|
|
|
7.20 |
|
|
|
6.89 |
|
|
|
|
|
|
|
|
|
(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 + Legal and other capital Reserves + Accumulated earnings with
capitalization agreement + Unrealized profit in subsidiaries - Goodwill - (0.5 x
Inverstment in Subsidiaries) + Perpetual subordinated debt (maximum amount that
can be included is 17.65% of Capital + Legal and other 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 4Q10,
BCP Bolivia obtained net income of US$ 3.4 million, which represents a slight
0.1% increase QoQ and a 63.9% contraction YoY. BCP Bolivia was able to sustain
its level of income thanks to an increase in net interest income (9.6%) due to
sustained growth in the loan portfolio and better interest rates which helped
offset an increase in operating expenses (14.2% QoQ), which was mainly
attributable to a US$ 1.2 million reclassification of loan provisions. The YOY
decline in net income was due primarily to a contraction in net interest income
(-27.1% YoY) and a drop in non-financial income (-12.8% YoY).
Net
interest income has been affected by surplus liquidity; limitations on foreign
investment (50% of net shareholder’s equity);
restrictions on active rates for loans to the productive sector; and an increase
in passive rates for individuals. Additionally, some fees have been eliminated
(regulated by ASFI), which has blocked the banking system’s efforts to
offset a drop in net interest income. The Boliviano’s appreciation has
increased the demand for dollar-denominated loans.
The
bank’s
prudent strategy for loan risk helped it achieve a past due ratio of 1.5% in
4Q10 (1.4% in 3Q10 and 1.8% in 4Q09) and a coverage ratio of 272.6% (304.5% in
3Q10 and 257.9% in 4Q09). These figures prove that BCP Bolivia is a top
performer in the Bolivian banking system, which reported 2.2% and 220.8%
respectively at the end of 4Q10 for the aforementioned ratios. BCP
Bolivia’s
ROAE was 14.7%, which represents a 0.5% decline with regard to September 2010
and 36.5% in terms of December 2009’s
figure.
Assets
and Liabilities
BCP
Bolivia’s
loan balance at the end of December 2010 was US$ 605.2 million, 6.0% higher than
the US$ 570.7 million reported in September 2010 and 25.7% above the level
registered in December 2009. Loan growth in the fourth quarter of the year was
attributable to two factors: i) the bank relaxed some of its loan guidelines due
to good macroeconomic indicators and ii) BCP Bolivia currently boasts one of the
lowest past due ratios in the banking system.
This
quarter, Retail Banking’s performance, was
particularly noteworthy, reporting 9.1% growth QoQ and 28.1% YoY. This increase
had a significant impact on the bank’s results given
that Retail Banking loans represent 54.8% of the total portfolio (Wholesale
Banking accounts for 42.2% and Special Accounts 3.0%) and generate the highest
interest rates. The retail banking product that demonstrated the highest QoQ
growth came mainly from the Pyme segment (17.2% QoQ), which represented 25.5% of
the portfolio. The Home Mortgage segment accounted for 43.5% of total retail
loans and reported 5.6% growth QoQ and 20.3% YoY.
In terms
of liabilities, BCP’s total deposits
grew 11.3% QoQ and 4.7% YoY. The QoQ increase is due primarily to
15.7% growth in demand deposits and a 13.7% increase in term deposits. The YoY
increase, on the other hand, can be explained by the 27.5% increase in term
deposits with regard to 2009’s figures.
Growth in
term deposits is in keeping with the bank’s policy to match
assets and liabilities as well as efforts to capture new deposits while rates in
national currency are at an all-time low.
Net
shareholder’s
equity increased 3.2% QoQ but fell 11.8% YoY due to lower earnings in
2010.
In terms
of the financial system, BCP Bolivia has a market share of 11.5% in current
loans (not including rescheduled loans) and 12.8% of total deposits. This
situates the bank in third place in the banking system in terms of loans and
fourth place with regard to deposits. 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.
Finally,
in accumulated terms, BCP Bolivia reported net income of US$ 15.8 million in
2010. This figure is 48.1% lower than 2009’s figure and it
will probably set the new level of income that can be achieved within the
existent economic framework.
Banco de Crédito de Bolivia
|
|
Quarter
|
|
|
Change %
|
|
|
Year ended
|
|
|
Change %
|
|
US$ million
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
Dec 10 / Dec 09
|
|
Net
interest income
|
|
|
8.4 |
|
|
|
7.7 |
|
|
|
11.5 |
|
|
|
9.6 |
% |
|
|
-27.1 |
% |
|
|
33.0 |
|
|
|
50.2 |
|
|
|
-34.2 |
% |
Net
provisions for loan losses
|
|
|
-0.2 |
|
|
|
-1.3 |
|
|
|
0.9 |
|
|
|
-81.1 |
% |
|
|
-126.7 |
% |
|
|
-3.6 |
|
|
|
-4.2 |
|
|
|
-14.2 |
% |
Non
financial income
|
|
|
9.4 |
|
|
|
9.4 |
|
|
|
10.8 |
|
|
|
-0.5 |
% |
|
|
-12.8 |
% |
|
|
36.3 |
|
|
|
38.4 |
|
|
|
-5.5 |
% |
Operating
expenses
|
|
|
-13.2 |
|
|
|
-11.6 |
|
|
|
-12.7 |
|
|
|
14.2 |
% |
|
|
4.5 |
% |
|
|
-46.9 |
|
|
|
-50.2 |
|
|
|
-6.6 |
% |
Translation
result
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
0.0 |
|
|
|
245.1 |
% |
|
|
458.7 |
% |
|
|
0.2 |
|
|
|
-0.2 |
|
|
|
-212.6 |
% |
Income
tax
|
|
|
-1.1 |
|
|
|
-0.8 |
|
|
|
-1.0 |
|
|
|
32.9 |
% |
|
|
10.7 |
% |
|
|
-3.2 |
|
|
|
-3.5 |
|
|
|
-8.2 |
% |
Net
Income
|
|
|
3.4 |
|
|
|
3.4 |
|
|
|
9.5 |
|
|
|
0.1 |
% |
|
|
-63.9 |
% |
|
|
15.8 |
|
|
|
30.4 |
|
|
|
-48.1 |
% |
Total
loans
|
|
|
605.2 |
|
|
|
570.7 |
|
|
|
481.3 |
|
|
|
6.0 |
% |
|
|
25.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Past
due loans
|
|
|
8.8 |
|
|
|
7.9 |
|
|
|
8.7 |
|
|
|
12.2 |
% |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
provisions for possible loan losses
|
|
|
-23.0 |
|
|
|
-23.1 |
|
|
|
-21.0 |
|
|
|
-0.6 |
% |
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
investments
|
|
|
223.0 |
|
|
|
224.5 |
|
|
|
305.4 |
|
|
|
-0.7 |
% |
|
|
-27.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
1,122.0 |
|
|
|
1,014.2 |
|
|
|
1,097.8 |
|
|
|
10.6 |
% |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
|
|
988.3 |
|
|
|
888.2 |
|
|
|
943.6 |
|
|
|
11.3 |
% |
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholders' equity
|
|
|
95.5 |
|
|
|
92.6 |
|
|
|
108.3 |
|
|
|
3.2 |
% |
|
|
-11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PDL
/ total loans
|
|
|
1.47 |
% |
|
|
1.39 |
% |
|
|
1.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coverage
ratio of PDLs
|
|
|
272.6 |
% |
|
|
304.5 |
% |
|
|
257.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROAE*
|
|
|
14.7 |
% |
|
|
15.1 |
% |
|
|
36.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branches
|
|
|
66 |
|
|
|
65 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agentes
|
|
|
34 |
|
|
|
35 |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATMs
|
|
|
176 |
|
|
|
172 |
|
|
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
|
|
|
1,415 |
|
|
|
1,396 |
|
|
|
1,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
ROAE: (Annualized net income / average Net shareholders'
equity).
IV.
Financiera Edyficar
Edyficar
|
|
Quarter
|
|
|
Change %
|
|
|
Year ended
|
|
US$ 000
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
Net
financial income
|
|
|
24,060 |
|
|
|
21,571 |
|
|
|
16,164 |
|
|
|
11.5 |
% |
|
|
48.9 |
% |
|
|
82,431 |
|
Total
provisions for loan loasses
|
|
|
(2,443 |
) |
|
|
(1,887 |
) |
|
|
(5,790 |
) |
|
|
29.5 |
% |
|
|
-57.8 |
% |
|
|
(5,431 |
) |
Non
financial income
|
|
|
190 |
|
|
|
223 |
|
|
|
590 |
|
|
|
-15.2 |
% |
|
|
-67.9 |
% |
|
|
723 |
|
Operating
expenses
|
|
|
(13,318 |
) |
|
|
(13,147 |
) |
|
|
(8,785 |
) |
|
|
1.3 |
% |
|
|
51.6 |
% |
|
|
(47,223 |
) |
Operating
Income
|
|
|
8,489 |
|
|
|
6,761 |
|
|
|
2,179 |
|
|
|
25.6 |
% |
|
|
289.6 |
% |
|
|
30,500 |
|
Translation
results
|
|
|
(676 |
) |
|
|
1,138 |
|
|
|
(376 |
) |
|
|
-159.5 |
% |
|
|
-79.8 |
% |
|
|
2,292 |
|
Worker's
profit sharing and income taxes
|
|
|
(3,274 |
) |
|
|
(2,440 |
) |
|
|
(659 |
) |
|
|
34.2 |
% |
|
|
397.1 |
% |
|
|
(10,682 |
) |
Net
income
|
|
|
4,538 |
|
|
|
5,459 |
|
|
|
1,144 |
|
|
|
-16.9 |
% |
|
|
296.6 |
% |
|
|
22,110 |
|
Contribution
to BCP
|
|
|
4,529 |
|
|
|
5,447 |
|
|
|
1,142 |
|
|
|
-16.9 |
% |
|
|
396.6 |
% |
|
|
22,063 |
|
Total
loans
|
|
|
356,235 |
|
|
|
318,708 |
|
|
|
249,768 |
|
|
|
11.8 |
% |
|
|
42.6 |
% |
|
|
356,235 |
|
Past
due loans
|
|
|
14,281 |
|
|
|
13,352 |
|
|
|
9,688 |
|
|
|
7.0 |
% |
|
|
47.4 |
% |
|
|
14,281 |
|
Net
provisions for possible loan losses
|
|
|
(26,223 |
) |
|
|
(24,987 |
) |
|
|
(25,242 |
) |
|
|
4.9 |
% |
|
|
3.9 |
% |
|
|
(26,223 |
) |
Total
assets
|
|
|
465,888 |
|
|
|
375,773 |
|
|
|
275,282 |
|
|
|
24.0 |
% |
|
|
69.2 |
% |
|
|
465,888 |
|
Deposits
and obligations
|
|
|
154,173 |
|
|
|
74,271 |
|
|
|
36,082 |
|
|
|
107.6 |
% |
|
|
327.3 |
% |
|
|
154,173 |
|
Net
shareholders´ equity
|
|
|
52,419 |
|
|
|
47,878 |
|
|
|
41,418 |
|
|
|
9.5 |
% |
|
|
26.6 |
% |
|
|
52,419 |
|
PDL
/ Total loans
|
|
|
4.0 |
% |
|
|
4.2 |
% |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
4.0 |
% |
Coverage
ratio of PDLs
|
|
|
183.6 |
% |
|
|
187.1 |
% |
|
|
260.6 |
% |
|
|
|
|
|
|
|
|
|
|
183.6 |
% |
Return
on average equity*
|
|
|
18.0 |
% |
|
|
22.8 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
22.7 |
% |
Branches
|
|
|
101 |
|
|
|
105 |
|
|
|
97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees
|
|
|
1,693 |
|
|
|
1,534 |
|
|
|
1,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
*Net
shareholders' equity includes US$ 50.7 millions from goodwill.
Financiera
Edyficar obtained positive results in 4Q10, which contributed to consolidating
the company’s excellent performance throughout 2010. Net earnings in 4Q10 were
US$ 4.5 million, which is lower than the figure reported in 3Q10 (-16.9%) due
primarily to higher income tax provisions for 2010 realized in the 4Q and due to
a slight loss on local currency exposure after the Nuevo Sol depreciated 1%
against the US Dollar during 4Q10.
A YoY
analysis shows a 296.6% increase over 4Q09’s result, which demonstrates that the
improvements implemented after BCP’s purchase of Edyficar have been
positive. The main indicators in 4Q10 were:
|
i)
Total loans reached US$ 356.2 million, maintaining the upward trend
evident throughout the year to report 11.8% growth QoQ, which represents
the most significant quarterly expansion in
2010.
|
|
ii)
The past due ratio fell to 4.0% due to an increase in the loan portfolio
(+11.8% QoQ), which helped offset slower growth in the past due portfolio
(+7.0% QoQ). This allowed Edyficar to achieve a past due ratio similar to
that reported at the end of 2009 (3.9%). Additionally, net provisions for
possible loan losses increased 4.9% QoQ. This was in line with portfolio
growth, which translated into a coverage ratio for overdue loans of
183.6%.
|
|
iii)
The market share has consolidated in the micro finance segment,
concentrating 6.9% of total loans- topping the 6.4% share reported at the
end of 3Q10.
|
It is
important to emphasize Edyficar’s excellent operating earnings in 4Q10, which
grew 25.6% QoQ due to 11.5% QoQ growth in NII. This last factor was attributable
to a significant expansion in the loan portfolio and adequate financial
management based on lower financial expenses and hedge for exchange rate risk
with forward contracts.
Deposits
and obligations grew 107.6% QoQ due to an increase in institutional funds such
as Mutual Funds, Insurance Companies and AFPs, in line with the company’s
strategy to diversify funding sources. The majority of these resources were used
in the Money Market portfolio that Edyficar has invested in Time Deposits in the
Central Bank and other Financial Institutions. During 4Q10, this
portfolio maintained a solid average balance of US$ 87 million. Additionally, in
the month of November, Financiera Edyficar issued 1-year Certificates of Deposit
for S/. 25 million that can be increased to S/. 50 million. The demand for these
securities was S/. 150 million at an interest rate of 4.23% (estimated spread of
68 bps on 297-day BCR’s CD).
In 2010,
Edyficar reported earnings of US$ 22.1 million, which represents a return on
average equity, including goodwill, of 22.7% and 47.1% without including the
same.
Another
important aspect worth pointing out is the fact that the loan portfolio expanded
42.6%. This portfolio’s past due ratio was only 4.0% while the coverage ratio on
overdue loans was 183.6%.
Finally,
it is evident that Edyficar continues to contribute to BCP’s objectives in terms
of loan levels, profitability and efforts to increase the use of banking
services through increased penetration of the micro financing
system.
V.
Atlantic Security Holding Corporation
Quarterly
Results
ASHC
|
|
Quarter
|
|
|
Year to date
|
|
|
Change %
|
|
US$ million
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10 / Dec 09
|
|
Net
interest income
|
|
10.0 |
|
|
8.7 |
|
|
9.4 |
|
|
36.7 |
|
|
29.4 |
|
|
15.2 |
% |
|
6.4 |
% |
|
24.9 |
% |
Dividend
income
|
|
0.3 |
|
|
0.2 |
|
|
0.2 |
|
|
25.6 |
|
|
22.3 |
|
|
67.1 |
% |
|
57.3 |
% |
|
14.4 |
% |
Fees
and commissions from services
|
|
1.9 |
|
|
2.1 |
|
|
2.5 |
|
|
8.3 |
|
|
6.5 |
|
|
-10.8 |
% |
|
-22.2 |
% |
|
28.9 |
% |
Net
gains on foreign exchange transactions
|
|
0.0 |
|
|
0.0 |
|
|
-0.1 |
|
|
-0.3 |
|
|
-0.6 |
|
|
-153.3 |
% |
|
78.9 |
% |
|
-46.7 |
% |
Total
earnings
|
|
12.2 |
|
|
11.0 |
|
|
12.0 |
|
|
70.3 |
|
|
57.6 |
|
|
10.4 |
% |
|
1.8 |
% |
|
22.0 |
% |
Net
Provisions
|
|
-1.8 |
|
|
-1.5 |
|
|
-2.3 |
|
|
-3.3 |
|
|
-10.7 |
|
|
16.7 |
% |
|
-24.3 |
% |
|
-69.7 |
% |
Net
gains from sale of securities
|
|
3.4 |
|
|
3.1 |
|
|
4.1 |
|
|
13.8 |
|
|
7.3 |
|
|
12.6 |
% |
|
-15.7 |
% |
|
88.3 |
% |
Other
income
|
|
0.0 |
|
|
-0.1 |
|
|
5.5 |
|
|
0.2 |
|
|
7.6 |
|
|
51.1 |
% |
|
-100.8 |
% |
|
-96.8 |
% |
Operating
expenses
|
|
-2.1 |
|
|
-1.9 |
|
|
-2.2 |
|
|
-7.7 |
|
|
-7.8 |
|
|
-11.3 |
% |
|
4.3 |
% |
|
-1.7 |
% |
Net
income
|
|
11.7 |
|
|
10.6 |
|
|
17.1 |
|
|
73.4 |
|
|
54.1 |
|
|
10.6 |
% |
|
-31.3 |
% |
|
35.9 |
% |
Net
income / share
|
|
0.1 |
|
|
0.1 |
|
|
0.2 |
|
|
0.8 |
|
|
0.6 |
|
|
10.6 |
% |
|
-31.3 |
% |
|
35.9 |
% |
Contribution
to Credicorp
|
|
11.7 |
|
|
10.6 |
|
|
14.9 |
|
|
48.8 |
|
|
29.7 |
|
|
10.5 |
% |
|
-21.4 |
% |
|
64.2 |
% |
Total
loans
|
|
468.1 |
|
|
493.0 |
|
|
132.3 |
|
|
468.1 |
|
|
132.3 |
|
|
-5.0 |
% |
|
254.0 |
% |
|
|
|
Total
investments available for sale
|
|
747.5 |
|
|
781.5 |
|
|
779.3 |
|
|
747.5 |
|
|
779.3 |
|
|
-4.4 |
% |
|
-4.1 |
% |
|
|
|
Total
assets
|
|
1,400.8 |
|
|
1,527.2 |
|
|
1,483.6 |
|
|
1,400.8 |
|
|
1,483.6 |
|
|
-8.3 |
% |
|
-5.6 |
% |
|
|
|
Total
deposits
|
|
1,116.8 |
|
|
1,249.8 |
|
|
1,220.6 |
|
|
1,116.8 |
|
|
1,220.6 |
|
|
-10.6 |
% |
|
-8.5 |
% |
|
|
|
Net
shareholder's equity
|
|
265.8 |
|
|
261.2 |
|
|
239.8 |
|
|
265.8 |
|
|
239.8 |
|
|
1.8 |
% |
|
10.9 |
% |
|
|
|
Net
interest margin
|
|
3.13 |
% |
|
2.57 |
% |
|
2.74 |
% |
|
2.78 |
% |
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
13.6 |
% |
|
13.6 |
% |
|
10.3 |
% |
|
9.1 |
% |
|
10.8 |
% |
|
|
|
|
|
|
|
|
|
Return
on average equity
|
|
17.8 |
% |
|
16.8 |
% |
|
29.8 |
% |
|
29.1 |
% |
|
30.4 |
% |
|
|
|
|
|
|
|
|
|
PDL
/ Total loans
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
Coverge
ratio
|
|
0.2 |
% |
|
0.2 |
% |
|
0.8 |
% |
|
0.2 |
% |
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
BIS
ratio
|
|
23.43 |
% |
|
20.54 |
% |
|
19.62 |
% |
|
23.43 |
% |
|
19.62 |
% |
|
|
|
|
|
|
|
|
|
Atlantic
Security Holding Corporation (ASHC) reported net income of US$ 11.7 million in
4Q10, which is 10.6% higher than the figure reported in 3Q10. In accumulated
terms, net income in 2010 totaled US$ 73.4 million, representing a 35.9%
increase YoY. ASCH's contribution to Credicorp totaled US$ 48.8 million, which
represents a significant 64.2% improvement YoY.
The QoQ
increase is primarily attributable to higher margins in 4Q10, which were
associated with a strategy to seek higher returns by moving some investments to
longer term positions and increasing investments in instruments without an
investment grade. It is important to point out that US$ 1.8 million in
provisions were set aside this quarter in keeping with the bank’s conservative
policy.
The
growth obtained in accumulated results is attributable to
|
i)
|
The
increase in the financial margin and earnings for securities sales, which
are attributable to the aforementioned strategy to invest in higher yield
instruments as well as adequate management of portfolio segmentation,
which helped increase the total return on productive assets and
contributed to higher earnings for securities sales;
and
|
|
ii)
|
The
increase in fee income due to growth in AuM associated with Fondos ASB and
direct third-party investments, which were in turn attributable to higher
market values and efforts to capture new
clients.
|
In terms
of operating efficiency, the efficiency ratio this quarter remained at last
quarter’s
level- 13.6%. Nevertheless, the result for the whole of 2010 was 9.1%, which
marks an improvement over 2009’s result (10.8%)
and was due to higher earnings, lower reserves and reduced
expenses.
ROAE
reached 17.8%, which is higher than 3Q10’s figure (16.8%)
but 12 percentage points below 4Q09’s result. The YoY
result was due to lower unrealized earnings on the investment portfolio at the
end of 4Q10. In accumulated terms, ROAE in 2010 was 29.1%, which is
lower than the 20.4% obtained in 2009. This was attributable primarily to an
increase in average shareholder’s equity in 2010
due to higher earnings during the period as well as higher average unrealized
earnings.
Assets
and Liabilities
Interest
earning assets totaled US$ 1,288 million, as is evident in the table below. The
9.6% decline QoQ was due primarily to a 40.4% drop in Cash and Banks, which is
in turn associated with clients’ decision to
cancel deposits to invest some of their funds in the bank’s investment
products. A YoY comparison indicates a net decline of 6.5% due to
loan amortization and securities sales, which were in turn used to complement
cash requirements to cover deposit cancellation and client
investments.
The most
significant variation in the structure of interest earning assets was evident in
the YoY result for Cash, Banks and Loans. This is primarily attributable to a
move to transfer deposits held in BCP until 4Q09 to ASHC’s loan portfolio
at the beginning of 2010.
Interest earning assets*
|
|
Quarter
|
|
Change %
|
|
US$ million
|
|
4Q10
|
|
3Q10
|
|
4Q09
|
|
QoQ
|
|
|
YoY
|
|
Due
from banks
|
|
|
98 |
|
|
164 |
|
|
483 |
|
|
-40.4 |
% |
|
|
-79.7 |
% |
Loans
|
|
|
468 |
|
|
493 |
|
|
132 |
|
|
-5.0 |
% |
|
|
254.0 |
% |
Investments
|
|
|
722 |
|
|
767 |
|
|
763 |
|
|
-5.9 |
% |
|
|
-5.3 |
% |
Total
interest-earning assets
|
|
|
1,288 |
|
|
1,424 |
|
|
1,377 |
|
|
-9.6 |
% |
|
|
-6.5 |
% |
(*)
Excludes investments in equities and mutual funds.
A
significant portion of the instruments are investment grade (70%), which
reflects the bank’s prudent policy
to concentrate portfolio investment in instruments with a good risk
profile.
In obtain
higher yields for its shareholders, ASCH has been using healthy strategies and
implementing the necessary controls to successfully invest in higher yield
instruments. The latter, as previously mentioned, hinges on investing in longer
term instruments and instruments without an investment grade. It is important to
emphasize that the increase in products without an investment grade has risen
only 1 percentage point above 2009’s
figure.
Customer
deposits fell 10.6% QoQ and 8.5% YoY due to low reference levels post-crisis,
which led customers to invest their deposits in ASHC’s investment
products.
Shareholder’s equity only grew
1.8% QoQ but demonstrated a significant 10.9% increase YoY. This was due
primarily to higher earnings during the period (US$ 73.4 million) and the
dividends of US$49.9 million paid to Credicorp Ltd.
Asset
Administration
The
deposits’
total and AuM include investments in proprietary mutual funds and financial
instruments in custody. The total of these funds increased 0.6% QoQ and 26.7%
YoY.
AuM
increased 5.2% QoQ, continuing an upward trend but at a slower pace. A YoY
comparison shows 46.5% growth, which is attributable to value recovery and
renewed investor confidence in international securities markets. Both of these
factors have led clients to invest in managed funds and increase their positions
through direct purchases.
Deposits
fell 10.6% QoQ and 8.5% YoY as clients moved to use funds from deposits to
increase their off-balance AuM.
VI.
Prima AFP
Prima’s net income in
4Q10 totaled US$ 8.0 million, which represents a 40.6% increase QoQ. This
improvement is due primarily to reversals in the tax and employee profit sharing
account and a slight increase in fee income. Net accumulated income in 2010 was
US$ 25.5 million, which represents an increase of 22.6% YoY.
Prima’s commercial
management strategy continued to focus on new captures, particularly in the
provinces, and concentrated on the mining, construction, agro-industry and
commercial sectors. The volume of new captures in the fourth quarter rose 28%
QoQ.
At the
end of the fourth quarter of 2010, PRIMA’s funds under
management represented 31.4% of the total managed by the private pension system.
This figure indicates a QoQ improvement in market share.
PRIMA’s collections
contribution level increased in 4Q10 to account for 33.35% of total collections
contributions. Good profitability levels for managed funds led clients to
increase their voluntary contributions and helped consolidate the company’s market position
for this product.
Quarterly main indicators and market share
|
|
PRIMA
4Q10
|
|
System
4Q10
|
|
Part.
4Q10 %
|
|
|
PRIMA
3Q10
|
|
System
3Q10
|
|
|
Part.
3Q10 %
|
|
Affiliates
|
|
|
1,124,457 |
|
|
4,641,688 |
|
|
24.2 |
% |
|
|
1,110,105 |
|
|
4,587,455 |
|
|
|
24.2 |
% |
New
affiliations (1)
|
|
|
17,450 |
|
|
67,853 |
|
|
25.7 |
% |
|
|
13,592 |
|
|
56,112 |
|
|
|
24.2 |
% |
Funds
under management US$ million
|
|
|
9,765 |
|
|
31,077 |
|
|
31.4 |
% |
|
|
8,911 |
|
|
28,836 |
|
|
|
30.9 |
% |
Collections
US$ million (1)
|
|
|
165 |
|
|
497 |
|
|
33.3 |
% |
|
|
147 |
|
|
460 |
|
|
|
32.0 |
% |
Voluntary
contributions US$ million
|
|
|
122 |
|
|
268 |
|
|
45.5 |
% |
|
|
101 |
|
|
233 |
|
|
|
43.4 |
% |
RAM
US$ million (2)
|
|
|
433 |
|
|
1,371 |
|
|
31.6 |
% |
|
|
423 |
|
|
1,325 |
|
|
|
31.9 |
% |
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
During
4Q10, significant growth was evident in the volume of new affiliations while the
volume of transfers remained stable. Total captures in 4Q10 topped 19,800
people, including 17,450 new affiliations and approximately 2,350 transfers.
This result is in line with the company’s commercial
strategy. In terms of the previous quarter, new affiliations increased 28% and
transfers rose 3%. It is important to point out that the net results
for affiliations and transfers (entry and exist) produced a positive impact on
PRIMA’s
balance and bolstered QoQ RAM results. RAM continues to follow an
upward trend, which has helped the company maintain market leadership with a
31.6% share.
At the
end of the fourth quarter, Prima’s funds under
management totaled US$ 9,765 million, which represents 31.4% of total funds
under management in the system. This confirms Prima’s market
leadership in terms of this indicator.
Investments
The
profitability of Prima’s managed funds
over the last 12 months (December 2010/December 2009) was 8.90%, 21.11% and
35.65% for funds 1, 2 and 3 respectively. With these results, PRIMA is market
leader in profitability for funds 2 and 3 and second with regard to fund 1.
Meanwhile the value of funds managed by PRIMA totaled US$ 9,765 million at the
end of December, which represents close to 10% growth QoQ in the volume
managed.
Annualized
profitability over a five-year period (December 2010/December 2005) for
Prima’s Fund
2 was 15.34% while the average profitability of the private pension system was
14.56%. It is important to point out that Prima was the system leader during
this period.
If we
extend the period of analysis to include the time period ranging from the
system’s
start-up to present day (December 2010/December 1993), the funds managed by the
AFP system achieved an annual nominal annualized yield of 14.41% and 9.33% in
real terms.
The
following table shows the structure of the fund managed by Prima in the fourth
quarter of 2010:
Funds under management as of December 2010
|
|
Dec 10
|
|
|
Share %
|
|
|
Sep 10
|
|
|
Share %
|
|
Fund
1
|
|
|
713 |
|
|
|
7.3 |
% |
|
|
699 |
|
|
|
7.8 |
% |
Fund
2
|
|
|
6,364 |
|
|
|
65.2 |
% |
|
|
5,889 |
|
|
|
66.1 |
% |
Fund
3
|
|
|
2,688 |
|
|
|
27.5 |
% |
|
|
2,323 |
|
|
|
26.1 |
% |
Total
US$ millon
|
|
|
9,765 |
|
|
|
100 |
% |
|
|
8,911 |
|
|
|
100 |
% |
Source:
Superintendencia de Banca, Seguros y AFP
Financial
Results
Income
During
the fourth quarter of 2010, PRIMA earned fee income of US$ 21.9 million, which
represents 0.4% growth QoQ. Accumulated income for the year totaled US$ 85.2
million, which indicates an increase of 8.1%. This improvement was due to the
fact that our income base grew during the period and the national economy
continued to strengthen. It is also necessary to point out that the income
calculation in 2010 contains one contribution period less than in 2009, when the
government implemented a measure to exonerate affiliates from obligatory
contributions on the additional salary payments that Peruvian Law requires
employers to make in July and December.
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$ 433 million
at the end of December 2010.
Estimate
of base to calculate earnings
US$ million
|
|
PRIMA - Dec 2010
|
|
|
System - Dec 2010
|
|
|
Share %
|
|
Income
(1)
|
|
|
7.6 |
|
|
|
25.9 |
|
|
|
29.2 |
% |
Administrative
fees
|
|
|
1.75 |
% |
|
n.a.
|
|
|
n.a.
|
|
RAM
base (2)
|
|
|
433 |
|
|
|
1,371 |
|
|
|
31.6 |
% |
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
Operating
expenses in the fourth quarter rose 17.5% QoQ due to increases in the
following:
i) provisions
for personnel expenses,
ii)
expenses
for investment management and,
iii) advertising
and marketing expenses, which were highest in the last quarter of the
year.
All of
the aforementioned affected operating income, which fell 14.6% QoQ. An
accumulated comparison of administrative expenses and sales totaled US$ 38.5
million, which indicates an increase of 7.9% YoY. This was due primarily to an
increase in charges for administrative personnel, fund investment and expenses
for operating and system support.
Expenses
for depreciation and amortization totaled US$ 2.3 million in 4Q10, including
intangible asset amortization (obtained following the merger with Union Vida) as
well as depreciation and amortization of real estate, equipment and
systems.
Finally,
PRIMA’s net
income in the fourth quarter was US$ 8.0 million, which represents a 40.6%
increase QoQ. This improvement was associated primarily with reversals in the
income tax and employee profit sharing account due to changes in IFRS accounting
standards. In annual terms, net earnings totaled US$ 25.5 million,
which represents a 22.6% increase YoY.
At the
end of December 2010, PRIMA reported an asset level of US$ 276.1 million.
Shareholders’
equity reached US$ 183.7 million while assets totaled US$ 92.4
million.
The table
below summarizes the financial results:
|
|
|
|
|
|
|
|
Change %
|
|
|
Year ended
|
|
Change %
|
|
Main financial indicators (US$ thousand) (1)
|
|
4Q10
|
|
3Q10
|
|
4Q09
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
Dec 09
|
|
Dec 10 / Dec 09
|
|
Income
from commissions
|
|
21,909 |
|
|
21,812 |
|
|
19,904 |
|
|
0.4 |
% |
|
10.1 |
% |
|
85,158 |
|
|
78,791 |
|
|
8.1 |
% |
Administrative
and sale expenses
|
|
(11,181 |
) |
|
(9,516 |
) |
|
(10,181 |
) |
|
17.5 |
% |
|
9.8 |
% |
|
(38,507 |
) |
|
(35,678 |
) |
|
7.9 |
% |
Depreciation
and amortization
|
|
(2,314 |
) |
|
(2,443 |
) |
|
(2,363 |
) |
|
-5.3 |
% |
|
-2.1 |
% |
|
(9,689 |
) |
|
(9,330 |
) |
|
3.8 |
% |
Operating
income
|
|
8,414 |
|
|
9,853 |
|
|
7,360 |
|
|
-14.6 |
% |
|
14.3 |
% |
|
36,962 |
|
|
33,784 |
|
|
9.4 |
% |
Other
income and expenses, net
|
|
(505 |
) |
|
(298 |
) |
|
(906 |
) |
|
69.6 |
% |
|
-44.3 |
% |
|
(2,168 |
) |
|
(3,378 |
) |
|
-35.8 |
% |
Employee
profit sharing and income tax
|
|
90 |
|
|
(3,771 |
) |
|
(2,150 |
) |
|
-102.4 |
% |
|
-104.2 |
% |
|
(8,912 |
) |
|
(8,667 |
) |
|
2.8 |
% |
Net
income before translation results
|
|
8,000 |
|
|
5,784 |
|
|
4,304 |
|
|
38.3 |
% |
|
85.9 |
% |
|
25,881 |
|
|
21,738 |
|
|
19.1 |
% |
Translations
results and deferred liabilities
|
|
8 |
|
|
(88 |
) |
|
(82 |
) |
|
-109.2 |
% |
|
-110.0 |
% |
|
(375 |
) |
|
(942 |
) |
|
-60.2 |
% |
Net
income
|
|
8,008 |
|
|
5,696 |
|
|
4,222 |
|
|
40.6 |
% |
|
89.7 |
% |
|
25,506 |
|
|
20,796 |
|
|
22.6 |
% |
Total
assets
|
|
276,139 |
|
|
260,186 |
|
|
249,771 |
|
|
6.1 |
% |
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
92,437 |
|
|
91,002 |
|
|
84,543 |
|
|
1.6 |
% |
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
Net
shareholders' equity
|
|
183,703 |
|
|
169,184 |
|
|
165,228 |
|
|
8.6 |
% |
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
(1)
IFRS
VII. El
Pacífico Peruano Suiza and Subsidiaries
Grupo
Pacifico
The
Pacifico Insurance Group, which is comprised of property and casualty lines
(PPS), life insurance (PV) and health insurance (EPS), reported net income of
US$16.5 million in 4Q10, similar to the figure of US$ 16.4 million recorded in
3Q10. The YoY evolution indicates that 4Q10’s results are 18.8% below
the US$20.2 million registered in 4Q09 due to i) a decrease in the underwriting
result in 4Q10 vs. 4Q09, and ii) the lower income tax provisions registered in
4Q09 as a result of a reversal made at the end of last year following a change
in the treatment of FX related losses that corresponds to permanent investments
in life insurance.
Accumulated
results in 2010 reported record net income of US$ 68.3 million, which tops
2009’s result of US$61.7 million by 10.8%. This increase is due primarily an
improvement in the underwriting result.
The
underwriting result obtained in 4Q10 totaled US$ 24.3 million, which is similar
to the US$ 24.2 million reported in 3Q10. In 4Q, premiums in the property and
casualty, health and life segments increased significantly. Nevertheless, 4Q10’s
result falls below 4Q09’s figure of US$ 29.0 million. This is mainly
attributable to the evolution of the property and casualty business (PPS) this
quarter, which was marked by a higher loss ratio of 54.8% compared to 35.6% in
4Q09 due to severity incurred during the last quarter of the year.
The
underwriting result obtained in 2010 totaled US$ 93.4 million, which exceeds
last year’s result by 16.9%. This significant growth is due to a lower loss
ratio of 63.6% versus 65.2% in 2009, which is in turn attributable to a
disciplined approach to underwriting and portfolio diversification.
The
quarterly result reported earnings of US$ 24.4 million in financial income in
comparison to US$ 25.3 million in 3Q10 and US$ 19.0 million in
4Q09.
General
expenses totaled US$ 29.4 million, remaining stable with regard to 3Q10 but
falling below the US$ 31.4 million reported in 4Q09. This is due primarily
to
i)
a
provisions reversal for legal fees paid to third parties and
ii) a
provisions release for uncollectible reinsurance reserves, both in the property
and casualty segment (PPS).
In 2010,
the ratio of general expenses over net earned premiums reached 21.5%, which is
slightly higher than last year’s result of 20.8%.
Finally,
Pacifico’s contribution to Credicorp benefitted this last 4Q of the acquisition
of ALICO’s shares of the Pacifico group, especially since the profitable life
insurance business contributes now almost 100% of its income to the group vs.
about 50 % before the acquisition. Such contribution reached this 4Q US$ 16.0
million which exceeded 3Q10’s figure and topped the earnings of US$ 12.4 million
reported in 4Q09.
US$ thousand
|
|
Net earnings
|
|
|
Total Contribution
|
|
Period
|
|
PPS
|
|
|
PV
|
|
|
EPS*
|
|
|
PGA
|
|
|
to BAP
|
|
4Q09
|
|
|
9,093 |
|
|
|
10,476 |
|
|
|
700 |
|
|
|
20,264 |
|
|
|
12,372 |
|
1Q10
|
|
|
5,789 |
|
|
|
7,759 |
|
|
|
1,495 |
|
|
|
15,043 |
|
|
|
8,492 |
|
2Q10
|
|
|
8,095 |
|
|
|
10,487 |
|
|
|
1,878 |
|
|
|
20,461 |
|
|
|
12,518 |
|
3Q10
|
|
|
7,599 |
|
|
|
6,962 |
|
|
|
1,825 |
|
|
|
16,386 |
|
|
|
10,439 |
|
4Q10
|
|
|
6,737 |
|
|
|
8,667 |
|
|
|
1,045 |
|
|
|
16,450 |
|
|
|
15,962 |
|
QoQ
|
|
|
-11.3 |
% |
|
|
24.5 |
% |
|
|
-42.7 |
% |
|
|
0.4 |
% |
|
|
52.9 |
% |
YoY
|
|
|
-25.9 |
% |
|
|
-17.3 |
% |
|
|
49.4 |
% |
|
|
-18.8 |
% |
|
|
29.0 |
% |
*Includes
Médica, an additional company which offers medical assistance
services.
Pacífico
General Insurance (PPS)
PPS’s net
income in 2010 totaled US$ 28.2 million, which is improvement over the US$ 26.2
million obtained in 2009. This is attributable primarily to: i) a loss ratio of
50.5% in 2010 versus 53.1% in 2009, ii) 5.0% growth in net earned premiums and
iii) higher financial income, which reported an increase of 8.5%
YoY.
Net
income in 4Q10 reached US$ 6.7 million versus US$ 7.6 million in 3Q10 and US$
9.1 million in 4Q09. This is mainly attributable to higher net claims
corresponding to severity incurred in the property and casualty
line.
Technical
Results by Business Unit
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
US$
million
|
|
Vehicle
Insurance
|
|
|
Private
Health
Insurance
|
|
|
P&C
|
|
|
TOTAL
PPS
|
|
|
Vehicle
Insurance
|
|
|
Private
Health
Insurance
|
|
|
P&C
|
|
|
TOTAL
PPS
|
|
|
Vehicle
Insurance
|
|
|
Private
Health
Insurance
|
|
|
P&C
|
|
|
TOTAL
PPS
|
|
Net
earned premiums
|
|
22.3 |
|
|
16.0 |
|
|
16.1 |
|
|
54.3 |
|
|
20.8 |
|
|
16.0 |
|
|
14.3 |
|
|
51.1 |
|
|
20.4 |
|
|
15.0 |
|
|
17.0 |
|
|
52.4 |
|
Underwriting
results
|
|
9.2 |
|
|
2.2 |
|
|
6.1 |
|
|
17.4 |
|
|
7.3 |
|
|
3.3 |
|
|
9.9 |
|
|
20.5 |
|
|
9.3 |
|
|
4.4 |
|
|
11.7 |
|
|
25.4 |
|
Loss
ratio
|
|
37.7 |
% |
|
77.2 |
% |
|
56.4 |
% |
|
54.8 |
% |
|
42.5 |
% |
|
70.8 |
% |
|
16.1 |
% |
|
44.0 |
% |
|
31.3 |
% |
|
62.2 |
% |
|
17.4 |
% |
|
35.6 |
% |
Underwriting
results / net earned premiums
|
|
41.1 |
% |
|
13.7 |
% |
|
37.9 |
% |
|
32.1 |
% |
|
35.1 |
% |
|
20.6 |
% |
|
69.1 |
% |
|
40.1 |
% |
|
45.7 |
% |
|
29.3 |
% |
|
68.7 |
% |
|
48.5 |
% |
|
·
|
Net
earned premiums for Car Insurance totaled US$ 22.3 million in 4Q10, which
indicates an increase with regard to the US$ 20.8 million in 3Q10 and US$
20.4 million in 4Q09.
|
The net
earned premium in the Car line was US$ 19.7 million in 4Q10; this indicates a
QoQ increase that is primarily due to higher new car sales in the market as well
as the consolidation of new commercial channels.
The
Statutory Auto Liability line (SOAT) earned direct premiums in 4Q10 for a total
of US$ 2.8 million, which falls below the result obtained in 3Q10 of US$ 3.3
million. This is due primarily to a seasonal component that leads to higher
sales in the third quarter of the year.
|
·
|
During
4Q10, the Private Health Insurance line reported net earned premiums of
US$ 16.0 million, which is similar to the result obtained in 3Q10 but 6%
higher than that reported in 4Q09. The loss ratio of 77.2% exceeded the
70.8% reported in 3Q10 and the 62.2% obtained in 4Q09. This is
attributable to severity incurred internationally and in international
health product lines. Despite this quarterly increase, the loss
ratio in 2010 was low: 70.7%. Additionally, in terms of market share,
Pacifico Insurance is currently market leader in this
segment.
|
The
Property and Casualty line (P & C) obtained net earned premiums of US$ 16.1
million, which is slightly above the figure reported in 3Q10 and US$ 1 million
lower than that registered in 4Q09. The YoY variation is attributable to an
increase in the percentage of ceded premiums, which went from 60% in 4Q09 to 68%
in 4Q10 due to an increase in direct premiums (15%),
mainly Fire (+27%) and Technical Lines (+27%), which
represent the highest volatility segments. The loss ratio increased from 17.4%
in 4Q09 to 56.4% in 4Q10 due to a severe loss, which was adequately absorbed by
the volume and quality of the property and casualty portfolio.
At the
end of the period, business was stable. This was achieved by consistent use of
efficient underwriting criteria over the past few years and the decision to
retain risks that imply less volatility. Expert pricing and more extensive
diversification were also key factors in this success.
PPS’s net
financial income reached earnings of $6.4 million in 4Q10, registering an
increase over the US$ 5.8 million obtained in 3Q10. This is attributable to
higher dividends and interest income.
In
summary, the following aspects of PPS’s property and casualty segment stand out
this quarter:
i)
net
premium income totaled US$ 54.3 million while
ii) total
operating costs reached US$ 15.6 million. These results led
to
iii) a
combined ratio this quarter of 96.7%, of which 54.8 points correspond to losses
and loss adjustment expenses, 13.1 to business acquisition costs and the
remaining 28.8 to general or administrative expenses.
Pacífico
Vida (PV)
Pacifico
Vida obtained earnings before minority interest of US$ 8.7 million in 4Q10,
which is an improvement over 3Q10’s US$ 7.0 million.
The
underwriting result obtained in 4Q10 of US$ 2.1 million is primarily
attributable to:
i)
the increase in net
earned premiums of US$ 38.1 million in 4Q10 versus US$ 35.9 million in 3Q10,
which in turn led to an increase of consolidate underwriting reserves related to
higher annuity life insurance sales,
ii) lower net
losses in the fourth quarter of the year, falling from US$ 25.2 million in 3Q10
to US$ 23.4 million in 4Q10 and
iii) lower net
underwriting expenses, which totaled US$ 1.5 million in 4Q10 versus US$ 2.3
million in 3Q10 due to reinsurance income.
Pacífico
Vida
Products
|
|
Total Premiums
|
|
Change %
|
|
US$ million
|
|
4Q10
|
|
3Q10
|
|
4Q09
|
|
QoQ
|
|
|
YoY
|
|
Individual
life
|
|
15.4 |
|
14.8 |
|
13.2 |
|
4.1 |
% |
|
16.3 |
% |
Individual
annuity
|
|
36.0 |
|
29.0 |
|
9.9 |
|
24.3 |
% |
|
264.0 |
% |
Disability
& survivor (Pension)
|
|
12.2 |
|
11.5 |
|
8.8 |
|
6.8 |
% |
|
39.4 |
% |
Credit
Life
|
|
9.6 |
|
9.0 |
|
6.5 |
|
7.1 |
% |
|
47.6 |
% |
Personal
accidents
|
|
3.1 |
|
3.0 |
|
2.8 |
|
2.2 |
% |
|
9.6 |
% |
Group
life (Law)
|
|
2.5 |
|
2.4 |
|
2.1 |
|
0.4 |
% |
|
17.4 |
% |
Group
life
|
|
3.0 |
|
2.8 |
|
3.1 |
|
10.3 |
% |
|
-3.4 |
% |
Limited
workers compensation
|
|
3.6 |
|
3.5 |
|
2.8 |
|
1.3 |
% |
|
24.9 |
% |
TOTAL
|
|
85.4 |
|
75.9 |
|
49.3 |
|
12.5 |
% |
|
73.1 |
% |
Net
financial expenses totaled US$17.8 million this quarter versus US$19.2 million
in 3Q10. This decline is due to an inflation adjustment in VAC bonds (constant
value – quarterly adjustment for deflation).
General
expenses in 4Q10 increased 13% with regard to 3Q10 to reach US$9.9 million. This
was due primarily to provisions and liquidations.
After
deducting minority interest of US$ 3.3 million, net income in the life segment
totaled US$ 5.4 million in 4Q10, which represents a 25% increase
QoQ.
Pacífico
Salud (EPS)
During
4Q10, Pacífico Salud reported net earned premiums of US$ 39.7 million, which
tops both the US$ 38.6 million obtained in 3Q10 and the US$ 34.0 million
registered in 4Q09. This was attributable primarily to new affiliates. The
overall loss ratio was 80.7% in 4Q10. This figure falls below the 84.5% reported
in 4Q09 thanks to improvements in loss underwriting despite an increase in
claims in the last quarter of 2010, which caused the ratio to increase with
regard to 3Q10’s figure.
General
expenses totaled US$ 4.2 million, registering an increase, attributable to
higher advertising and publicity expenses as well as yearly bonus payments.
Consequently, net earnings in 4Q10 totaled US$ 1.0 million, which falls below
the US$ 1.8 million reported in 3Q10 but is nevertheless higher than the net
earnings of US$ 0.7 million in 4Q09.
In
summary, growth was significant in 2010. Net income during the period totaled
US$ 6.2 million, which represents a substantial improvement over the US$ 2.6
million reported in 2009. This success is attributable to improvements in
operating processes, adequate underwriting policies and effective expense
control.
VIII.
Economic Outlook
Economic
Activity
Economic
growth in 4Q10 is estimated at 8.9%. This figure, although higher than initially
expected, reflects a slower pace of growth. In this context, growth in 2010 was
calculated at 9.0%. This annual expansion was attributable to
non-primary sectors- particularly construction (13.9%) and manufacturing (13.6%)
- and was offset by a contraction in primary sectors, including fishing (-29.1%)
and mining (-0.1%). External and public demand continued to lag but private
demand was vigorous despite lower stimulus from public works and higher
financing costs due to the liquidity restrictions implemented by the Central
Bank (increase in reserve requirements). It is important to emphasize that this
shows that the private sector’s position is
solid, which is reflected in the indicators linked with investment
(manufacturing and import of capital goods, construction), which continued to be
dynamic throughout 4Q10.
Despite
the fact that this is an elections year, the country’s risk indicators
have remained stable. This indicates that the political scenario should have
little impact on economic activity. As such, and in line with growth
in 2010, the Peruvian economy is expected to expand 7.0% in 2011. This forecast
is based, as it has been for the past several years, on the evolution of private
investment and productive sectors linked to demand such as construction and
manufacturing.
External
Sector
In 4Q10,
the trade balance reported a surplus of approximately US$ 1,500 million, which
is slightly higher than last quarter’s figure. This is
due to an increase in the prices for the country’s primary exports
(especially minerals), which was offset by growth in imports (close to 35% a
year) due to the fact that internal demand remains
dynamic. It is important to mention that in real terms,
exports have varied little as the international recovery has been
slow.
The trade
balance remained positive but higher mineral prices have allowed non-domiciled
companies to increase their earnings remittances to company
headquarters. This, however, has increased the current account
deficit. In this scenario, the external deficit in 2010 was estimated at 1.8% of
GDP and this figure could rise in 2011 as investment picks
up. Nevertheless, investment flows, including direct foreign and
portfolio-related investment, were more than sufficient to cover this deficit
and led to an accumulation in international reserves. At the end of 2010,
BCR’s net
international reserves totaled US$ 44,105 million, which reflects an increase of
US$ 10,970 million during 2010.
Prices
and Exchange Rate
At the
end of 2010, annual inflation was situated at 2.1%, which is slightly above
BCR’s target.
This is due primarily to an increase in food prices during the first half of the
year, which was attributable to supply factors. During the last four months of
2010, this trend was reversed and the food and beverage group reported an
accumulated inflation of 2.5% during 2010. This modest variation,
nonetheless, was offset by higher inflation relative to fuel and
electricity. Despite this evolution, agents’ expectations
remained stable in line with the evolution of core inflation, which was situated
between 1.9% and 2.1% throughout the year (around the center of the inflation
target).
In 2011,
core inflation is expected to remain around 2.0% and overall inflation should
situate close to the upper limit of the target range (1%-3%), driven by an
increase in commodity prices.
At the
end of 2010, the exchange rate demonstrated a depreciatory trend (the opposite
of the situation reported during the first half of the year). This was due
primarily to an increase in risk aversion attributable to growing uncertainty in
the euro zone. Despite this trend reversal, the Nuevo Sol was the
most stable currency in Latin America in 201. This was due to BCR’s purchases, which
totaled approximately US$ 9 billion in 2010. In this scenario, the exchange rate
closed at 2.81 Nuevos Soles per US Dollar at the end of 2010. This represents an
appreciation of 1.7% during 2010.
Fiscal
Sector
Total
central government collections continued to demonstrate an upward trend in
November. This was attributable to the good performance of internal demand and
higher commodities prices in the last few months of the year. This led to higher
tax collections for income tax and value-added tax. In this scenario, tax income
reported annual growth of 22.2% in November, which is the highest figure
recorded since May 2007. This was due primarily to higher value-added tax
collections, which was in turn attributable to the fact that the economy was
more dynamic in 2010 than 2009. Sunat believes that this favorable trend
continued in December but annual growth was more than likely a bit lower due to
higher comparative results in December 2009.
Due to an
increase in non-financial public sector income, BCR has revised its estimate for
the fiscal deficit. This figure is currently 0.9% of GDP (versus a previous
estimate of 1.1% of GDP). The Minister of Economy has said that
a deficit close 1.0% will give the government room for fiscal maneuvering if the
international context deteriorates.
Banking
System
In
November, the private sector’s loan balance
increased 2.3% MoM. This was attributable to loans in Nuevos Soles and in US
Dollars, which grew 2.9% and 1.7% respectively. In annual terms,
loans grew 20.2% at a pace that increased from February 2010 on. The private
sector’s loan
dollarization coefficient, not including foreign branches, was 44.2% at the end
of 2010 (similar to October). The Central Bank believes that this coefficient is
on the decline, due primarily to the fact that the local currency has
strengthened.
Finally a
progressive increase has been observed in interest rates in Nuevos Soles, in
line with increases in the Central Bank’s reference rate.
The first rate to line up was TIPMN, which went from 1.81% in December to 1.89%
in January. TAMN remained low during the last few months of 2010, reporting
18.81% and 18.78% in November and December respectively. Nevertheless, the
evolution of active interest rates is differentiated as some rise (aligning with
the Central Bank’s new position)
while others, such as active rates for micro lending and mortgage loans,
continue to fall.
Main
Financial Indicators
|
|
2008
|
|
2009
|
|
2010
|
|
|
|
Year
|
|
IQ
|
|
2Q
|
|
3Q
|
|
4Q
|
|
Year
|
|
IQ
|
|
2Q
|
|
3Q
|
|
GDP
(US$ million)
|
|
127,643 |
|
27,914 |
|
31,927 |
|
32,010 |
|
35,302 |
|
127,153 |
|
35,224 |
|
39,062 |
|
38,475 |
|
Real
GDP (var. %)
|
|
9.8 |
|
1.9 |
|
-1.2 |
|
-0.6 |
|
3.4 |
|
0.9 |
|
6.2 |
|
10.2 |
|
9.7 |
|
GDP
per-capita (US$)
|
|
4,532 |
|
3,888 |
|
4,407 |
|
4,379 |
|
4,786 |
|
4,365 |
|
4,733 |
|
5,202 |
|
5,078 |
|
Domestic
demand (var. %)
|
|
12.1 |
|
-0.8 |
|
-5.8 |
|
-5.0 |
|
0.4 |
|
-2.9 |
|
8.4 |
|
14.2 |
|
15.1 |
|
Consumption
(var. %)
|
|
8.7 |
|
4.1 |
|
1.6 |
|
1.0 |
|
2.8 |
|
2.4 |
|
5.4 |
|
5.8 |
|
6.2 |
|
Private
Investment (var. %)
|
|
28.3 |
|
4.3 |
|
-16.0 |
|
-14.6 |
|
-5.9 |
|
-8.6 |
|
12.3 |
|
29.5 |
|
26.8 |
|
CPI
(annual change, %)
|
|
6.7 |
|
4.8 |
|
3.1 |
|
1.2 |
|
0.3 |
|
0.3 |
|
0.8 |
|
1.6 |
|
2.4 |
|
Exchange
rate, eop (S/. per US$)
|
|
3.14 |
|
3.16 |
|
3.01 |
|
2.88 |
|
2.89 |
|
2.89 |
|
2.84 |
|
2.84 |
|
2.79 |
|
Devaluation
(annual change, %)
|
|
4.7 |
|
15.2 |
|
1.5 |
|
-3.1 |
|
-8.0 |
|
-8.0 |
|
-10.2 |
|
-5.6 |
|
-3.2 |
|
Exchange
rate, average (S/. per US$)
|
|
2.92 |
|
3.18 |
|
3.02 |
|
2.96 |
|
2.89 |
|
3.01 |
|
2.84 |
|
2.84 |
|
2.81 |
|
Non-Financial
Public Sector (% of GDP)
|
|
2.1 |
|
2.6 |
|
1.8 |
|
-3.2 |
|
-8.2 |
|
-1.9 |
|
3.0 |
|
1.9 |
|
-1.3 |
|
Central
government current revenues (% of GDP)
|
|
18.2 |
|
16.5 |
|
16.7 |
|
15.3 |
|
15.2 |
|
15.9 |
|
18.2 |
|
17.9 |
|
16.6 |
|
Tax
Income (% of GDP)
|
|
15.6 |
|
14.6 |
|
14.1 |
|
13.0 |
|
13.4 |
|
13.8 |
|
15.4 |
|
15.6 |
|
14.3 |
|
Non
Tax Income (% of GDP)
|
|
2.6 |
|
1.9 |
|
2.6 |
|
2.2 |
|
1.8 |
|
2.1 |
|
2.7 |
|
2.3 |
|
2.2 |
|
Current
expenditures (% of GDP)
|
|
12.4 |
|
11.8 |
|
10.7 |
|
14.8 |
|
13.5 |
|
12.7 |
|
11.3 |
|
10.3 |
|
13.3 |
|
Capital
expenditures (% of GDP)
|
|
4.4 |
|
3.5 |
|
4.5 |
|
6.1 |
|
10.1 |
|
6.1 |
|
3.9 |
|
5.9 |
|
6.4 |
|
Trade
Balance (US$ million)
|
|
3,090 |
|
513 |
|
1,335 |
|
1,838 |
|
2,188 |
|
5,873 |
|
1,574 |
|
1,548 |
|
1,442 |
|
Exports
(US$ million)
|
|
31,529 |
|
5,396 |
|
6,161 |
|
7,169 |
|
8,159 |
|
26,885 |
|
7,908 |
|
8,157 |
|
9,262 |
|
Imports
(US$ million)
|
|
28,439 |
|
4,883 |
|
4,827 |
|
5,330 |
|
5,971 |
|
21,011 |
|
6,334 |
|
6,609 |
|
7,820 |
|
Current
Account Balance (US$ million)
|
|
-4,723 |
|
-391 |
|
106 |
|
264 |
|
267 |
|
247 |
|
-533 |
|
-354 |
|
-846 |
|
Current
Account Balance (% of GDP)
|
|
-3.7 |
|
-1.4 |
|
0.3 |
|
0.8 |
|
0.8 |
|
0.2 |
|
-1.5 |
|
-0.9 |
|
-2.2 |
|
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.
CREDICORP
LTD. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In
US$ thousand, IFRS)
|
|
|
|
As of
|
|
|
|
Change %
|
|
|
|
Dec 10
|
|
Sep 10
|
|
Dec 09
|
|
QoQ
|
|
|
YoY
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and due from banks
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
|
1,624,377 |
|
|
961,902 |
|
|
938,486 |
|
|
68.9 |
% |
|
73.1 |
% |
Interest
bearing
|
|
|
6,958,478 |
|
|
2,906,126 |
|
|
2,898,172 |
|
|
139.4 |
% |
|
140.1 |
% |
Total
cash and due from banks
|
|
|
8,582,856 |
|
|
3,868,028 |
|
|
3,836,658 |
|
|
121.9 |
% |
|
123.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable
securities, net
|
|
|
114,430 |
|
|
73,986 |
|
|
70,774 |
|
|
54.7 |
% |
|
61.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
14,393,358 |
|
|
13,409,258 |
|
|
11,585,635 |
|
|
7.3 |
% |
|
24.2 |
% |
Current
|
|
|
14,183,610 |
|
|
13,195,983 |
|
|
11,401,113 |
|
|
7.5 |
% |
|
24.4 |
% |
Past
due
|
|
|
209,748 |
|
|
213,275 |
|
|
184,523 |
|
|
-1.7 |
% |
|
13.7 |
% |
Less
- net provisions for possible loan losses
|
|
|
(415,703 |
) |
|
(411,736 |
) |
|
(354,355 |
) |
|
1.0 |
% |
|
17.3 |
% |
Loans,
net
|
|
|
13,977,655 |
|
|
12,997,522 |
|
|
11,231,281 |
|
|
7.5 |
% |
|
24.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
securities available for sale
|
|
|
3,793,527 |
|
|
7,630,494 |
|
|
5,079,606 |
|
|
-50.3 |
% |
|
-25.3 |
% |
Reinsurance
assets
|
|
|
160,249 |
|
|
145,945 |
|
|
137,098 |
|
|
9.8 |
% |
|
16.9 |
% |
Premiums
and other policyholder receivables
|
|
|
129,136 |
|
|
122,643 |
|
|
121,338 |
|
|
5.3 |
% |
|
6.4 |
% |
Property,
plant and equipment, net
|
|
|
373,318 |
|
|
359,687 |
|
|
338,535 |
|
|
3.8 |
% |
|
10.3 |
% |
Due
from customers on acceptances
|
|
|
70,331 |
|
|
57,901 |
|
|
96,423 |
|
|
21.5 |
% |
|
-27.1 |
% |
Other
assets
|
|
|
1,249,973 |
|
|
1,343,867 |
|
|
1,116,395 |
|
|
-7.0 |
% |
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
28,451,474 |
|
|
26,600,072 |
|
|
22,028,107 |
|
|
7.0 |
% |
|
29.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND NET SHAREHOLDERS¨ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
and Obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
|
|
4,360,556 |
|
|
4,062,688 |
|
|
3,297,995 |
|
|
7.3 |
% |
|
32.2 |
% |
Interest
bearing
|
|
|
13,724,755 |
|
|
12,589,321 |
|
|
10,793,833 |
|
|
9.0 |
% |
|
27.2 |
% |
Total
deposits and Obligations
|
|
|
18,085,310 |
|
|
16,652,009 |
|
|
14,091,828 |
|
|
8.6 |
% |
|
28.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
to banks and correspondents
|
|
|
2,262,446 |
|
|
1,719,880 |
|
|
2,256,659 |
|
|
31.5 |
% |
|
0.3 |
% |
Acceptances
outstanding
|
|
|
70,331 |
|
|
57,901 |
|
|
96,423 |
|
|
21.5 |
% |
|
-27.1 |
% |
Reserves
for property and casualty claims
|
|
|
1,008,724 |
|
|
962,422 |
|
|
878,767 |
|
|
4.8 |
% |
|
14.8 |
% |
Reserve
for unearned premiums
|
|
|
187,599 |
|
|
163,362 |
|
|
140,024 |
|
|
14.8 |
% |
|
34.0 |
% |
Reinsurance
payable
|
|
|
60,775 |
|
|
65,112 |
|
|
48,009 |
|
|
-6.7 |
% |
|
26.6 |
% |
Bonds
and subordinated debt
|
|
|
2,985,500 |
|
|
3,067,395 |
|
|
1,287,022 |
|
|
-2.7 |
% |
|
132.0 |
% |
Other
liabilities
|
|
|
898,640 |
|
|
992,131 |
|
|
726,023 |
|
|
-9.4 |
% |
|
23.8 |
% |
Minority
interest
|
|
|
53,789 |
|
|
230,546 |
|
|
186,496 |
|
|
-76.7 |
% |
|
-71.2 |
% |
Total
liabilities
|
|
|
25,613,115 |
|
|
23,910,758 |
|
|
19,711,251 |
|
|
7.1 |
% |
|
29.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
1,059,344 |
|
|
0.0 |
% |
|
30.8 |
% |
Unrealized gains
|
|
|
341,844 |
|
|
327,666 |
|
|
237,446 |
|
|
4.3 |
% |
|
44.0 |
% |
Retained earnings
|
|
|
594,580 |
|
|
459,713 |
|
|
492,055 |
|
|
29.3 |
% |
|
20.8 |
% |
Net
shareholders' equity
|
|
|
2,838,360 |
|
|
2,689,315 |
|
|
2,316,856 |
|
|
5.5 |
% |
|
22.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and net shareholders' equity
|
|
|
28,451,474 |
|
|
26,600,072 |
|
|
22,028,107 |
|
|
7.0 |
% |
|
29.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
credits
|
|
|
9,257,732 |
|
|
9,222,042 |
|
|
2,528,135 |
|
|
0.4 |
% |
|
266.2 |
% |
QUARTERLY
INCOME STATEMENT
(In
US$ thousand, IFRS)
|
|
Quarter
|
|
|
Change %
|
|
|
Year ended
|
|
|
Change %
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
Dec 10 / Dec 09
|
|
Interest
income and expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
396,782 |
|
|
374,572 |
|
|
329,796 |
|
|
5.9 |
% |
|
20.3 |
% |
|
1,448,192 |
|
|
1,312,692 |
|
|
10.3 |
% |
Interest
expense
|
|
(114,652 |
) |
|
(103,134 |
) |
|
(91,834 |
) |
|
11.2 |
% |
|
24.8 |
% |
|
(390,605 |
) |
|
(420,774 |
) |
|
-7.2 |
% |
Net
interest income
|
|
282,131 |
|
|
271,438 |
|
|
237,963 |
|
|
3.9 |
% |
|
18.6 |
% |
|
1,057,587 |
|
|
891,918 |
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
provisions for loan losses
|
|
(48,304 |
) |
|
(52,303 |
) |
|
(44,044 |
) |
|
-7.6 |
% |
|
9.7 |
% |
|
(174,682 |
) |
|
(163,392 |
) |
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
financial income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
income
|
|
136,146 |
|
|
134,813 |
|
|
126,163 |
|
|
1.0 |
% |
|
7.9 |
% |
|
524,895 |
|
|
436,819 |
|
|
20.2 |
% |
Net
gain on foreign exchange transactions
|
|
28,907 |
|
|
26,211 |
|
|
23,256 |
|
|
10.3 |
% |
|
24.3 |
% |
|
104,169 |
|
|
92,389 |
|
|
12.8 |
% |
Net
gain on sales of securities
|
|
10,725 |
|
|
27,894 |
|
|
10,956 |
|
|
-61.5 |
% |
|
-2.1 |
% |
|
83,444 |
|
|
111,106 |
|
|
-24.9 |
% |
Other
|
|
16,088 |
|
|
5,069 |
|
|
13,749 |
|
|
217.4 |
% |
|
17.0 |
% |
|
37,707 |
|
|
40,551 |
|
|
-7.0 |
% |
Total
non financial income, net
|
|
191,866 |
|
|
193,987 |
|
|
174,124 |
|
|
-1.1 |
% |
|
10.2 |
% |
|
750,215 |
|
|
680,866 |
|
|
10.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
premiums and claims
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
premiums earned
|
|
126,986 |
|
|
120,702 |
|
|
115,107 |
|
|
5.2 |
% |
|
10.3 |
% |
|
480,293 |
|
|
424,682 |
|
|
13.1 |
% |
Net
claims incurred
|
|
(16,650 |
) |
|
(10,690 |
) |
|
(7,967 |
) |
|
55.7 |
% |
|
109.0 |
% |
|
(54,914 |
) |
|
(59,248 |
) |
|
-7.3 |
% |
Increase
in cost for life and health policies
|
|
(67,838 |
) |
|
(65,793 |
) |
|
(62,111 |
) |
|
3.1 |
% |
|
9.2 |
% |
|
(260,658 |
) |
|
(227,210 |
) |
|
14.7 |
% |
Total
other operating income, net
|
|
42,498 |
|
|
44,220 |
|
|
45,029 |
|
|
-3.9 |
% |
|
-5.6 |
% |
|
164,721 |
|
|
138,225 |
|
|
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employees benefits
|
|
(127,082 |
) |
|
(115,235 |
) |
|
(108,303 |
) |
|
10.3 |
% |
|
17.3 |
% |
|
(466,649 |
) |
|
(392,365 |
) |
|
18.9 |
% |
Administrative,
general and tax expenses
|
|
(101,194 |
) |
|
(81,463 |
) |
|
(93,152 |
) |
|
24.2 |
% |
|
8.6 |
% |
|
(341,123 |
) |
|
(312,256 |
) |
|
9.2 |
% |
Depreciation
and amortization
|
|
(22,814 |
) |
|
(21,469 |
) |
|
(19,890 |
) |
|
6.3 |
% |
|
14.7 |
% |
|
(85,679 |
) |
|
(73,222 |
) |
|
17.0 |
% |
Merger
expenses
|
|
- |
|
|
- |
|
|
- |
|
|
100.0 |
% |
|
100.0 |
% |
|
- |
|
|
- |
|
|
|
|
Other
|
|
(36,354 |
) |
|
(25,115 |
) |
|
(38,719 |
) |
|
44.8 |
% |
|
-6.1 |
% |
|
(110,294 |
) |
|
(120,797 |
) |
|
-8.7 |
% |
Total
operating expenses
|
|
(287,444 |
) |
|
(243,281 |
) |
|
(260,064 |
) |
|
18.2 |
% |
|
10.5 |
% |
|
(1,003,744 |
) |
|
(898,639 |
) |
|
11.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income*
|
|
180,747 |
|
|
214,060 |
|
|
153,008 |
|
|
-15.6 |
% |
|
18.1 |
% |
|
794,097 |
|
|
648,977 |
|
|
22.4 |
% |
Translation
result
|
|
(7,074 |
) |
|
14,467 |
|
|
1,075 |
|
|
-148.9 |
% |
|
-758.2 |
% |
|
24,128 |
|
|
12,371 |
|
|
95.0 |
% |
Workers’
profit sharing
|
|
(5,696 |
) |
|
(8,039 |
) |
|
(1,734 |
) |
|
-29.1 |
% |
|
228.5 |
% |
|
(27,828 |
) |
|
(18,412 |
) |
|
51.1 |
% |
Income
taxes
|
|
(35,759 |
) |
|
(54,902 |
) |
|
(19,378 |
) |
|
-34.9 |
% |
|
84.5 |
% |
|
(187,081 |
) |
|
(138,500 |
) |
|
35.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
132,217 |
|
|
165,586 |
|
|
132,971 |
|
|
-20.2 |
% |
|
-0.6 |
% |
|
603,315 |
|
|
504,435 |
|
|
19.6 |
% |
Minority
interest
|
|
2,935 |
|
|
9,360 |
|
|
10,675 |
|
|
-68.6 |
% |
|
-72.5 |
% |
|
32,013 |
|
|
34,651 |
|
|
-7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributed to Credicorp
|
|
129,282 |
|
|
156,226 |
|
|
122,296 |
|
|
-17.2 |
% |
|
5.7 |
% |
|
571,302 |
|
|
469,783 |
|
|
21.6 |
% |
*Income
before translation results, workers' profit sharing and income
taxes.
CREDICORP
LTD. AND SUBSIDIARIES
SELECTED
FINANCIAL INDICATORS
|
|
|
|
|
Quarter
|
|
|
|
|
|
Year ended
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
Dec 10
|
|
|
Dec 09
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share (US$ per share)(1)
|
|
|
1.62 |
|
|
|
1.96 |
|
|
|
1.53 |
|
|
|
7.16 |
|
|
|
5.89 |
|
Net
interest margin on interest earning assets (2)
|
|
|
4.62 |
% |
|
|
4.85 |
% |
|
|
5.06 |
% |
|
|
4.83 |
% |
|
|
4.86 |
% |
Return
on average total assets (2)(3)
|
|
|
1.9 |
% |
|
|
2.5 |
% |
|
|
2.3 |
% |
|
|
2.2 |
% |
|
|
2.2 |
% |
Return
on average shareholders' equity (2)(3)
|
|
|
18.7 |
% |
|
|
24.4 |
% |
|
|
22.0 |
% |
|
|
22.7 |
% |
|
|
24.1 |
% |
No.
of outstanding shares (million)(4)
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
79.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality
of loan portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past
due loans as a percentage of total loans
|
|
|
1.46 |
% |
|
|
1.59 |
% |
|
|
1.59 |
% |
|
|
1.46 |
% |
|
|
1.59 |
% |
Reserves
for loan losses as a percentage of total past due loans
|
|
|
198.2 |
% |
|
|
193.1 |
% |
|
|
192.0 |
% |
|
|
198.2 |
% |
|
|
192.0 |
% |
Reserves
for loan losses as a percentage of total loans
|
|
|
2.9 |
% |
|
|
3.1 |
% |
|
|
3.1 |
% |
|
|
2.9 |
% |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oper.
expenses as a percent. of total income (5)
|
|
|
43.7 |
% |
|
|
39.4 |
% |
|
|
44.0 |
% |
|
|
41.2 |
% |
|
|
42.1 |
% |
Oper.
expenses as a percent. of av. tot. Assets (2)(3)(5)
|
|
|
3.6 |
% |
|
|
3.5 |
% |
|
|
4.1 |
% |
|
|
3.5 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances (US$ million) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
earning assets
|
|
|
24,428.32 |
|
|
|
22,400.67 |
|
|
|
18,805.21 |
|
|
|
21,874.45 |
|
|
|
18,369.45 |
|
Total
assets
|
|
|
27,525.77 |
|
|
|
25,214.79 |
|
|
|
21,400.28 |
|
|
|
25,590.63 |
|
|
|
21,192.88 |
|
Net
shareholder´s equity
|
|
|
2,763.84 |
|
|
|
2,561.19 |
|
|
|
2,223.48 |
|
|
|
2,561.32 |
|
|
|
2,011.97 |
|
(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.
BANCO
DE CREDITO DEL PERU AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
(In
US$ thousand, IFRS)
|
|
|
|
As of
|
|
|
|
Change %
|
|
|
|
Dec 10
|
|
Sep 10
|
|
Dec 09
|
|
QoQ
|
|
|
YoY
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and due from banks
|
|
|
8,491,686 |
|
|
3,720,491 |
|
|
3,724,635 |
|
|
128.2 |
% |
|
128.0 |
% |
Cash
and BCRP
|
|
|
7,251,328 |
|
|
3,196,863 |
|
|
2,964,509 |
|
|
126.8 |
% |
|
144.6 |
% |
Deposits
in other Banks
|
|
|
1,174,351 |
|
|
523,098 |
|
|
683,527 |
|
|
124.5 |
% |
|
71.8 |
% |
Interbanks
|
|
|
59,000 |
|
|
- |
|
|
75,000 |
|
|
100.0 |
% |
|
-21.3 |
% |
Accrued
interest on cash and due from banks
|
|
|
7,007 |
|
|
530 |
|
|
1,599 |
|
|
1222.1 |
% |
|
338.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable
securities, net
|
|
|
114,430 |
|
|
73,986 |
|
|
70,318 |
|
|
54.7 |
% |
|
62.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
14,334,841 |
|
|
13,326,601 |
|
|
11,577,303 |
|
|
7.6 |
% |
|
23.8 |
% |
Current
|
|
|
14,125,859 |
|
|
13,114,103 |
|
|
11,393,557 |
|
|
7.7 |
% |
|
24.0 |
% |
Past
Due
|
|
|
208,982 |
|
|
212,498 |
|
|
183,746 |
|
|
-1.7 |
% |
|
13.7 |
% |
Less
- net provisions for possible loan losses
|
|
|
(414,806 |
) |
|
(410,814 |
) |
|
(353,348 |
) |
|
1.0 |
% |
|
17.4 |
% |
Loans,
net
|
|
|
13,920,035 |
|
|
12,915,787 |
|
|
11,223,955 |
|
|
7.8 |
% |
|
24.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities available for sale
|
|
|
1,503,201 |
|
|
5,336,436 |
|
|
3,026,542 |
|
|
-71.8 |
% |
|
-50.3 |
% |
Property,
plant and equipment, net
|
|
|
308,361 |
|
|
294,873 |
|
|
278,202 |
|
|
4.6 |
% |
|
10.8 |
% |
Due
from customers acceptances
|
|
|
70,331 |
|
|
57,901 |
|
|
96,423 |
|
|
21.5 |
% |
|
-27.1 |
% |
Other
assets
|
|
|
968,903 |
|
|
1,074,535 |
|
|
1,143,234 |
|
|
-9.8 |
% |
|
-15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
25,376,947 |
|
|
23,474,009 |
|
|
19,563,309 |
|
|
8.1 |
% |
|
29.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND NET SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
and obligations
|
|
|
17,069,818 |
|
|
15,642,366 |
|
|
14,465,809 |
|
|
9.1 |
% |
|
18.0 |
% |
Demand
deposits
|
|
|
5,597,674 |
|
|
5,257,055 |
|
|
4,440,643 |
|
|
6.5 |
% |
|
26.1 |
% |
Saving
deposits
|
|
|
4,244,940 |
|
|
3,953,997 |
|
|
3,539,917 |
|
|
7.4 |
% |
|
19.9 |
% |
Time
deposits
|
|
|
5,872,455 |
|
|
5,267,355 |
|
|
5,361,410 |
|
|
11.5 |
% |
|
9.5 |
% |
Severance
indemnity deposits (CTS)
|
|
|
1,313,122 |
|
|
1,127,933 |
|
|
1,069,267 |
|
|
16.4 |
% |
|
22.8 |
% |
Interest
payable
|
|
|
41,627 |
|
|
36,026 |
|
|
54,572 |
|
|
15.5 |
% |
|
-23.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
to banks and correspondents
|
|
|
3,646,026 |
|
|
3,181,057 |
|
|
1,278,245 |
|
|
14.6 |
% |
|
185.2 |
% |
Bonds
and subordinated debt
|
|
|
1,957,343 |
|
|
2,004,124 |
|
|
1,228,901 |
|
|
-2.3 |
% |
|
59.3 |
% |
Acceptances
outstanding
|
|
|
70,331 |
|
|
57,901 |
|
|
96,423 |
|
|
21.5 |
% |
|
-27.1 |
% |
Other
liabilities
|
|
|
636,874 |
|
|
720,209 |
|
|
813,959 |
|
|
-11.6 |
% |
|
-21.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
23,380,392 |
|
|
21,605,657 |
|
|
17,883,337 |
|
|
8.2 |
% |
|
30.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
shareholders' equity
|
|
|
1,992,545 |
|
|
1,864,471 |
|
|
1,675,533 |
|
|
6.9 |
% |
|
18.9 |
% |
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
|
|
|
157,564 |
|
|
131,056 |
|
|
106,708 |
|
|
20.2 |
% |
|
47.7 |
% |
Retained
Earnings
|
|
|
187,143 |
|
|
187,143 |
|
|
115,922 |
|
|
0.0 |
% |
|
61.4 |
% |
Income
for the year
|
|
|
476,316 |
|
|
374,750 |
|
|
397,378 |
|
|
27.1 |
% |
|
19.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interest
|
|
|
4,010 |
|
|
3,881 |
|
|
4,439 |
|
|
3.3 |
% |
|
-9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and net shareholders' equity
|
|
|
25,376,947 |
|
|
23,474,009 |
|
|
19,563,309 |
|
|
8.1 |
% |
|
29.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
credits
|
|
|
9,095,512 |
|
|
9,210,482 |
|
|
7,780,722 |
|
|
-1.2 |
% |
|
16.9 |
% |
BANCO
DE CREDITO DEL PERU AND SUBSIDIARIES
QUARTERLY
INCOME STATEMENT
(In
US$ thousand, IFRS)
|
|
Quarter
|
|
|
Change %
|
|
|
Year to date
|
|
|
Change %
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
Dec 10 / Dec 09
|
|
Interest
income and expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income
|
|
368,460 |
|
|
345,937 |
|
|
301,319 |
|
|
6.5 |
% |
|
22.3 |
% |
|
1,331,867 |
|
|
1,204,914 |
|
|
10.5 |
% |
Interest
expense
|
|
(113,927 |
) |
|
(103,663 |
) |
|
(90,086 |
) |
|
9.9 |
% |
|
26.5 |
% |
|
(387,233 |
) |
|
(406,697 |
) |
|
-4.8 |
% |
Net
interest and dividend income
|
|
254,533 |
|
|
242,274 |
|
|
211,233 |
|
|
5.1 |
% |
|
20.5 |
% |
|
944,634 |
|
|
798,217 |
|
|
18.3 |
% |
Net
provision for loan losses
|
|
(48,531 |
) |
|
(52,614 |
) |
|
(44,933 |
) |
|
-7.8 |
% |
|
8.0 |
% |
|
(175,773 |
) |
|
(165,104 |
) |
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
financial income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
services commissions
|
|
120,136 |
|
|
120,839 |
|
|
109,546 |
|
|
-0.6 |
% |
|
9.7 |
% |
|
461,775 |
|
|
368,067 |
|
|
25.5 |
% |
Net
gain on foreign exchange transactions
|
|
28,909 |
|
|
26,354 |
|
|
23,430 |
|
|
9.7 |
% |
|
23.4 |
% |
|
104,361 |
|
|
93,462 |
|
|
11.7 |
% |
Net
gain on sales of securities
|
|
2,264 |
|
|
18,987 |
|
|
9,185 |
|
|
-88.1 |
% |
|
-75.4 |
% |
|
51,139 |
|
|
101,349 |
|
|
-49.5 |
% |
Other
|
|
8,603 |
|
|
1,168 |
|
|
2,816 |
|
|
636.6 |
% |
|
205.5 |
% |
|
17,367 |
|
|
15,067 |
|
|
15.3 |
% |
Total
non financial income,net
|
|
159,912 |
|
|
167,348 |
|
|
144,977 |
|
|
-4.4 |
% |
|
10.3 |
% |
|
634,642 |
|
|
577,945 |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employees benefits
|
|
(105,187 |
) |
|
(95,404 |
) |
|
(89,486 |
) |
|
10.3 |
% |
|
17.5 |
% |
|
(389,997 |
) |
|
(328,469 |
) |
|
18.7 |
% |
Administrative
expenses
|
|
(81,579 |
) |
|
(67,549 |
) |
|
(79,622 |
) |
|
20.8 |
% |
|
2.5 |
% |
|
(282,779 |
) |
|
(266,363 |
) |
|
6.2 |
% |
Depreciation
and amortization
|
|
(18,796 |
) |
|
(17,392 |
) |
|
(16,153 |
) |
|
8.1 |
% |
|
16.4 |
% |
|
(69,448 |
) |
|
(58,709 |
) |
|
18.3 |
% |
Other
|
|
(9,251 |
) |
|
(4,406 |
) |
|
(12,695 |
) |
|
110.0 |
% |
|
-27.1 |
% |
|
(25,853 |
) |
|
(38,882 |
) |
|
-33.5 |
% |
Total
operating expenses
|
|
(214,813 |
) |
|
(184,751 |
) |
|
(197,956 |
) |
|
16.3 |
% |
|
8.5 |
% |
|
(768,077 |
) |
|
(692,423 |
) |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income*
|
|
151,101 |
|
|
172,257 |
|
|
113,321 |
|
|
-12.3 |
% |
|
33.3 |
% |
|
635,426 |
|
|
518,635 |
|
|
22.5 |
% |
Translation
result
|
|
(6,281 |
) |
|
12,896 |
|
|
12,609 |
|
|
-148.7 |
% |
|
-149.8 |
% |
|
23,267 |
|
|
7,802 |
|
|
198.2 |
% |
Workers’
profit sharing
|
|
(8,288 |
) |
|
(6,699 |
) |
|
(2,041 |
) |
|
23.7 |
% |
|
306.1 |
% |
|
(27,286 |
) |
|
(16,463 |
) |
|
65.7 |
% |
Income
taxes
|
|
(34,815 |
) |
|
(39,683 |
) |
|
(16,166 |
) |
|
-12.3 |
% |
|
115.4 |
% |
|
(154,399 |
) |
|
(111,421 |
) |
|
38.6 |
% |
Minority
interest
|
|
(150 |
) |
|
(151 |
) |
|
(325 |
) |
|
-0.7 |
% |
|
-53.8 |
% |
|
(691 |
) |
|
(1,175 |
) |
|
-41.2 |
% |
Net
income
|
|
101,567 |
|
|
138,620 |
|
|
107,398 |
|
|
-26.7 |
% |
|
-5.4 |
% |
|
476,317 |
|
|
397,378 |
|
|
19.9 |
% |
*Income
before translation results, workers' profit sharing and income
taxes.
BANCO
DE CREDITO DEL PERU AND SUBSIDIARIES
SELECTED
FINANCIAL INDICATORS
|
|
Quarter
|
|
|
Year to date
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
Dec 10
|
|
|
Dec 09
|
|
Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share (US$ per share) (1)
|
|
0.040 |
|
|
0.054 |
|
|
0.042 |
|
|
0.186 |
|
|
0.155 |
|
Net
interest margin on interest earning assets (2)
|
|
4.5 |
% |
|
4.8 |
% |
|
5.0 |
% |
|
4.8 |
% |
|
4.8 |
% |
Return
on average total assets (2)(3)
|
|
1.7 |
% |
|
2.5 |
% |
|
2.3 |
% |
|
2.1 |
% |
|
2.1 |
% |
Return
on average shareholders' equity (2)(3)
|
|
21.1 |
% |
|
31.3 |
% |
|
26.6 |
% |
|
26.8 |
% |
|
26.6 |
% |
No.
of outstanding shares (million)
|
|
2,557.70 |
|
|
2,557.70 |
|
|
2,557.70 |
|
|
2,557.70 |
|
|
2,557.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality
of loan portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past
due loans as a percentage of total loans
|
|
1.46 |
% |
|
1.59 |
% |
|
1.59 |
% |
|
1.46 |
% |
|
1.59 |
% |
Reserves
for loan losses as a percentage of total past due loans
|
|
198.5 |
% |
|
193.3 |
% |
|
192.3 |
% |
|
198.5 |
% |
|
192.3 |
% |
Reserves
for loan losses as a percentage of total loans
|
|
2.9 |
% |
|
3.1 |
% |
|
3.1 |
% |
|
2.9 |
% |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oper.
expenses as a percent. of total income (4)
|
|
50.9 |
% |
|
46.3 |
% |
|
53.8 |
% |
|
49.1 |
% |
|
51.9 |
% |
Oper.
expenses as a percent. of av. tot. Assets (2)(3)(4)
|
|
3.4 |
% |
|
3.3 |
% |
|
4.0 |
% |
|
3.3 |
% |
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
adequacy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Regulatory Capital (US$ million)
|
|
1,964.1 |
|
|
1,984.8 |
|
|
1,888.3 |
|
|
1,964.1 |
|
|
1,888.3 |
|
Tier I
capital (US$ million)
|
|
1,558.9 |
|
|
1,561.0 |
|
|
1,450.0 |
|
|
1,558.9 |
|
|
1,450.0 |
|
BIS
ratio (5)
|
|
12.8 |
% |
|
13.9 |
% |
|
14.5 |
% |
|
12.8 |
% |
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balances (US$ million) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
earning assets
|
|
22,500.7 |
|
|
20,147.4 |
|
|
16,826.9 |
|
|
19,832.4 |
|
|
16,579.6 |
|
Total
Assets
|
|
24,425.5 |
|
|
22,171.5 |
|
|
18,721.8 |
|
|
22,593.5 |
|
|
18,538.7 |
|
Net
shareholders' equity
|
|
1,928.5 |
|
|
1,772.1 |
|
|
1,615.9 |
|
|
1,778.8 |
|
|
1,496.7 |
|
(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, credit risk and operational risk.
EL
PACIFICO - PERUANO SUIZA and SUBSIDIARIES
(In
US$ thousand)
|
|
Balance to and for the period of
Three month ending
|
|
|
Year to date
|
|
|
Change %
|
|
|
|
31 Dec 10
|
|
|
30 Sep 10
|
|
|
31 Dec 09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 10 /
|
|
|
|
4Q10
|
|
|
3Q10
|
|
|
4Q09
|
|
|
Dec 10
|
|
|
Dec 09
|
|
|
QoQ
|
|
|
YoY
|
|
|
Dec 09
|
|
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Premiums
|
|
229,988 |
|
|
202,871 |
|
|
172,697 |
|
|
751,857 |
|
|
608,824 |
|
|
13.4 |
% |
|
33.2 |
% |
|
23.5 |
% |
Ceded
Premiums
|
|
44,773 |
|
|
37,986 |
|
|
34,968 |
|
|
125,775 |
|
|
101,743 |
|
|
17.9 |
% |
|
28.0 |
% |
|
23.6 |
% |
Unearned
premium reserves
|
|
54,045 |
|
|
40,675 |
|
|
18,582 |
|
|
130,085 |
|
|
67,567 |
|
|
32.9 |
% |
|
190.8 |
% |
|
92.5 |
% |
Net
earned premiums
|
|
131,169 |
|
|
124,210 |
|
|
119,146 |
|
|
495,997 |
|
|
439,515 |
|
|
5.6 |
% |
|
10.1 |
% |
|
12.9 |
% |
Direct
claims
|
|
94,503 |
|
|
79,716 |
|
|
92,473 |
|
|
346,053 |
|
|
335,959 |
|
|
18.5 |
% |
|
2.2 |
% |
|
3.0 |
% |
Ceded
claims
|
|
10,014 |
|
|
3,233 |
|
|
22,396 |
|
|
30,481 |
|
|
49,501 |
|
|
209.8 |
% |
|
-55.3 |
% |
|
-38.4 |
% |
Net
claims
|
|
84,488 |
|
|
76,483 |
|
|
70,078 |
|
|
315,572 |
|
|
286,457 |
|
|
10.5 |
% |
|
20.6 |
% |
|
10.2 |
% |
Direct
commissions
|
|
21,534 |
|
|
21,709 |
|
|
17,970 |
|
|
81,291 |
|
|
69,139 |
|
|
-0.8 |
% |
|
19.8 |
% |
|
17.6 |
% |
Commissions
received
|
|
3,280 |
|
|
3,212 |
|
|
2,395 |
|
|
11,678 |
|
|
9,565 |
|
|
2.1 |
% |
|
37.0 |
% |
|
22.1 |
% |
Net
commissions
|
|
18,254 |
|
|
18,497 |
|
|
15,575 |
|
|
69,613 |
|
|
59,574 |
|
|
-1.3 |
% |
|
17.2 |
% |
|
16.9 |
% |
Technical
expenses
|
|
8,149 |
|
|
7,556 |
|
|
7,267 |
|
|
28,808 |
|
|
24,777 |
|
|
7.9 |
% |
|
12.1 |
% |
|
16.3 |
% |
Technical
resolves
|
|
3,998 |
|
|
2,531 |
|
|
2,749 |
|
|
11,395 |
|
|
11,202 |
|
|
58.0 |
% |
|
45.4 |
% |
|
1.7 |
% |
Net
technical expenses
|
|
4,152 |
|
|
5,025 |
|
|
4,518 |
|
|
17,413 |
|
|
13,574 |
|
|
-17.4 |
% |
|
-8.1 |
% |
|
28.3 |
% |
Underwriting
results
|
|
24,275 |
|
|
24,205 |
|
|
28,976 |
|
|
93,399 |
|
|
79,909 |
|
|
0.3 |
% |
|
-16.2 |
% |
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
income
|
|
17,435 |
|
|
17,766 |
|
|
16,043 |
|
|
70,689 |
|
|
61,471 |
|
|
-1.9 |
% |
|
8.7 |
% |
|
15.0 |
% |
Gains
on sale of real state and secutirities
|
|
6,552 |
|
|
5,768 |
|
|
2,262 |
|
|
18,775 |
|
|
12,173 |
|
|
13.6 |
% |
|
189.6 |
% |
|
54.2 |
% |
Net
property and rental income
|
|
1,052 |
|
|
1,117 |
|
|
1,147 |
|
|
4,505 |
|
|
4,025 |
|
|
-5.8 |
% |
|
-8.2 |
% |
|
11.9 |
% |
(-)
Financial expenses
|
|
640 |
|
|
(621 |
) |
|
493 |
|
|
1,788 |
|
|
2,017 |
|
|
-203.0 |
% |
|
29.8 |
% |
|
-11.4 |
% |
Financial
income, net
|
|
24,400 |
|
|
25,272 |
|
|
18,960 |
|
|
92,181 |
|
|
75,652 |
|
|
-3.5 |
% |
|
28.7 |
% |
|
21.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and benefits
|
|
16,883 |
|
|
14,768 |
|
|
14,258 |
|
|
58,657 |
|
|
46,713 |
|
|
14.3 |
% |
|
18.4 |
% |
|
25.6 |
% |
Administrative
expenses
|
|
12,563 |
|
|
14,593 |
|
|
17,128 |
|
|
48,202 |
|
|
44,777 |
|
|
-13.9 |
% |
|
-26.7 |
% |
|
7.6 |
% |
Third
party services
|
|
5,932 |
|
|
6,841 |
|
|
5,039 |
|
|
22,948 |
|
|
17,806 |
|
|
-13.3 |
% |
|
17.7 |
% |
|
28.9 |
% |
Management
expenses
|
|
2,666 |
|
|
2,544 |
|
|
2,192 |
|
|
9,698 |
|
|
7,303 |
|
|
4.8 |
% |
|
21.6 |
% |
|
32.8 |
% |
Provisions
|
|
1,735 |
|
|
1,796 |
|
|
5,204 |
|
|
6,635 |
|
|
5,819 |
|
|
-3.4 |
% |
|
-66.7 |
% |
|
14.0 |
% |
Taxes
|
|
1,893 |
|
|
1,384 |
|
|
1,697 |
|
|
5,852 |
|
|
5,441 |
|
|
36.8 |
% |
|
11.5 |
% |
|
7.6 |
% |
Other
expenses
|
|
338 |
|
|
2,029 |
|
|
2,997 |
|
|
3,068 |
|
|
8,408 |
|
|
-83.3 |
% |
|
-88.7 |
% |
|
-63.5 |
% |
General
expenses
|
|
29,446 |
|
|
29,360 |
|
|
31,386 |
|
|
106,859 |
|
|
91,489 |
|
|
0.3 |
% |
|
-6.2 |
% |
|
16.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
2,321 |
|
|
20 |
|
|
945 |
|
|
2,894 |
|
|
1,778 |
|
|
11675.9 |
% |
|
145.5 |
% |
|
62.8 |
% |
Traslations
results
|
|
(547 |
) |
|
1,516 |
|
|
382 |
|
|
2,503 |
|
|
4,474 |
|
|
-136.1 |
% |
|
-243.2 |
% |
|
-44.1 |
% |
Employee
participation and income tax
|
|
4,553 |
|
|
5,267 |
|
|
(2,388 |
) |
|
15,778 |
|
|
8,637 |
|
|
-13.6 |
% |
|
-290.7 |
% |
|
82.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before minority interest
|
|
16,450 |
|
|
16,386 |
|
|
20,264 |
|
|
68,340 |
|
|
61,687 |
|
|
0.4 |
% |
|
-18.8 |
% |
|
10.8 |
% |
Minority
interest
|
|
3,294 |
|
|
2,645 |
|
|
3,981 |
|
|
12,872 |
|
|
12,495 |
|
|
24.5 |
% |
|
-17.3 |
% |
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
13,157 |
|
|
13,741 |
|
|
16,283 |
|
|
55,468 |
|
|
49,192 |
|
|
-4.3 |
% |
|
-19.2 |
% |
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
(end of period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
1,783,115 |
|
|
1,739,047 |
|
|
1,498,255 |
|
|
1,783,115 |
|
|
1,498,255 |
|
|
2.5 |
% |
|
19.0 |
% |
|
19.0 |
% |
Invesment
on securities and real state (1)
|
|
1,269,293 |
|
|
1,259,896 |
|
|
1,057,162 |
|
|
1,269,293 |
|
|
1,057,162 |
|
|
0.7 |
% |
|
20.1 |
% |
|
20.1 |
% |
Technical
reserves
|
|
1,196,506 |
|
|
1,126,039 |
|
|
1,019,551 |
|
|
1,196,506 |
|
|
1,019,551 |
|
|
6.3 |
% |
|
17.4 |
% |
|
17.4 |
% |
Net
equity
|
|
330,701 |
|
|
338,320 |
|
|
265,219 |
|
|
330,701 |
|
|
265,219 |
|
|
-2.3 |
% |
|
24.7 |
% |
|
24.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceded
|
|
19.5 |
% |
|
18.7 |
% |
|
20.2 |
% |
|
16.7 |
% |
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
Gross
loss ratio
|
|
41.1 |
% |
|
39.3 |
% |
|
53.5 |
% |
|
46.0 |
% |
|
55.2 |
% |
|
|
|
|
|
|
|
|
|
Loss
ratio
|
|
64.4 |
% |
|
61.6 |
% |
|
58.8 |
% |
|
63.6 |
% |
|
65.2 |
% |
|
|
|
|
|
|
|
|
|
Acquisition
costs/ earned premium
|
|
13.9 |
% |
|
14.9 |
% |
|
13.1 |
% |
|
14.0 |
% |
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
Commissions
+ technical expenses, net / net earned premiums
|
|
17.1 |
% |
|
18.9 |
% |
|
16.9 |
% |
|
17.5 |
% |
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
Underwriting
results / total premium
|
|
10.6 |
% |
|
11.9 |
% |
|
16.8 |
% |
|
12.4 |
% |
|
13.1 |
% |
|
|
|
|
|
|
|
|
|
Underwriting
results / net earned premiums
|
|
18.5 |
% |
|
19.5 |
% |
|
24.3 |
% |
|
18.8 |
% |
|
18.2 |
% |
|
|
|
|
|
|
|
|
|
General
expenses / net earned premiums
|
|
22.4 |
% |
|
23.6 |
% |
|
26.3 |
% |
|
21.5 |
% |
|
20.8 |
% |
|
|
|
|
|
|
|
|
|
Net
income / total premiums
|
|
5.7 |
% |
|
6.8 |
% |
|
9.4 |
% |
|
7.4 |
% |
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
Return
on equity (2)(3)
|
|
16.7 |
% |
|
18.7 |
% |
|
6.4 |
% |
|
18.6 |
% |
|
23.9 |
% |
|
|
|
|
|
|
|
|
|
Return
on total premiums
|
|
5.7 |
% |
|
6.8 |
% |
|
9.4 |
% |
|
7.4 |
% |
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
Net
equity / total assets
|
|
18.5 |
% |
|
19.5 |
% |
|
17.7 |
% |
|
18.5 |
% |
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
Increase
in technical reserves
|
|
29.2 |
% |
|
24.7 |
% |
|
13.5 |
% |
|
20.8 |
% |
|
13.3 |
% |
|
|
|
|
|
|
|
|
|
General
expenses / assets (2)(3)
|
|
6.9 |
% |
|
7.2 |
% |
|
2.1 |
% |
|
6.5 |
% |
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
ratio of PPS + PS (4)
|
|
97.3 |
% |
|
93.8 |
% |
|
94.2 |
% |
|
94.9 |
% |
|
96.8 |
% |
|
|
|
|
|
|
|
|
|
Net
claims / net earned premiums
|
|
65.6 |
% |
|
58.2 |
% |
|
54.7 |
% |
|
62.4 |
% |
|
65.6 |
% |
|
|
|
|
|
|
|
|
|
General
expenses and commissions / net earned premiums
|
|
31.7 |
% |
|
35.6 |
% |
|
39.5 |
% |
|
32.5 |
% |
|
31.2 |
% |
|
|
|
|
|
|
|
|
|
(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: February
4, 2011
|
|
|
|
CREDICORP
LTD.
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Giuliana Cuzquen |
|
|
|
Giuliana
Cuzquen |
|
|
|
Authorized
Representative
|