February 18, 2003
Securities and Exchange Commission,
450 Fifth Street, N.W.,
Washington, D.C. 20549
Re: Credicorp Ltd. - Report on Form 6-K
Dear Sirs:
On behalf of Credicorp Ltd. (the "Company"), I hereby notify you of the
following Material Event on the Company's Report on Form 6-K (the "Form 6-K").
The attached Material Event ("Hecho de Importancia") are being furnished to the
Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under
the Securities Exchange Act of 1934, as amended.
This Report contains a copy of the following:
- -- Notice of Material Event, submitted to CONASEV and the "Bolsa de Valores de
Lima" on February 11, 2003.
Please direct any questions or comments you may have regarding this filing to
the undersigned at 156 Calle Centenario, La Molina, Lima - 12 Peru.
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.
Credicorp Ltd.
Name: Ray Campos
Title: Authorized Representative
SECURITIES AND EXCHAGE COMMISSION
Washington, DC 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 quarter ended December 31, 2002
Credicorp Ltd.
Clarendon House
Church Street
Hamilton HM 11 Bermuda
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F___x_ Form 40-F________
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________ No_____x______
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
February 11, 2003
CONASEV
Dear Sirs:
In accordance with articles 10 and 28 of the Capital Markets Law and CONASEV
resolution number 107-2002-EF/94.10, Credicorp Ltd. complies in notifying you of
the following Material Event:
Today the Central Management of our company approved the consolidated financial
statements for Credicorp and subsidiaries as of December 31,2002,
Sincerely,
Benedicto Ciguenas
Credicorp Ltd.
CREDICORP LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 30, 2002 AND DECEMBER 31, 2001
(Amounts expressed in thousands of U.S. Dollars)
2002 2001 2002 2001
- ------------------------------------------------------------------------------------------------------------------------
ASSETS LIABILITIES AND SHAREHOLDERS'
EQUITY
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS CURRENT LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
Cash and due from banks 2,150,946 1,847,266 Deposits and obligations 6,093,007 5,220,580
- ------------------------------------------------------------------------------------------------------------------------
Interbank Funds 31,445 50,186 Interbank Funds 24,740 25,202
- ------------------------------------------------------------------------------------------------------------------------
Marketable securities, net Deposits from other financial
and international
613,174 548,138 institutions 245,057 319,163
- ------------------------------------------------------------------------------------------------------------------------
Loans net Due to banks and
3,030,726 2,156,868 correspondents 157,977 103,169
- ------------------------------------------------------------------------------------------------------------------------
Accounts receivables (net) Securities, notes and
49,897 49,285 obligations outstanding 418,638 212,748
- ------------------------------------------------------------------------------------------------------------------------
Other accounts receivables (net) 0 0 Accounts payables 0 0
- ------------------------------------------------------------------------------------------------------------------------
Other Assets 240,283 315,205 Other accounts payables 0 0
- ------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 6,116,471 4,966,948 Provisions 0 0
- ------------------------------------------------------------------------------------------------------------------------
Other liabilities 296,089 255,039
- ------------------------------------------------------------------------------------------------------------------------
Loan portfolio (net) 1,366,127 1,563,178 TOTAL CURRENT LIABILITIES 7,235,508 6,135,901
- ------------------------------------------------------------------------------------------------------------------------
Accounts receivables (net) 0 0
- ------------------------------------------------------------------------------------------------------------------------
Other accounts receivables (net) 91,533 100,250 Debt and financial obligations 126,981 213,081
- ------------------------------------------------------------------------------------------------------------------------
Disposable assets, Securities, notes and
foreclosed assets and out of use assets 92,091 75,750 obligations outstanding 70,958 61,871
- ------------------------------------------------------------------------------------------------------------------------
Investment securities available for sale 633,131 587,349 Other accounts payables 23,252 23,801
- ------------------------------------------------------------------------------------------------------------------------
Real state investments (net) 0 0 Provisions 273,457 238,159
- ------------------------------------------------------------------------------------------------------------------------
Property, plant and equipment, net Income tax and deferred
288,889 258,870 liabilities 0 0
- ------------------------------------------------------------------------------------------------------------------------
Intangible assets (net) 30,456 29,496 Other liabilities 0 0
- ------------------------------------------------------------------------------------------------------------------------
Income tax and deferred assets 0 0 TOTAL NON CURRENT LIABILITIES 494,648 536,912
- ------------------------------------------------------------------------------------------------------------------------
Other Assets 0 0 TOTAL LIABILITIES 7,730,156 6,672,813
- ------------------------------------------------------------------------------------------------------------------------
Minority Interest 64,742 112,255
- ------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
- ------------------------------------------------------------------------------------------------------------------------
Paid in Capital 398,735 397,307
- ------------------------------------------------------------------------------------------------------------------------
Additional Capital 140,500 139,020
- ------------------------------------------------------------------------------------------------------------------------
Reserves 69,527 69,527
- ------------------------------------------------------------------------------------------------------------------------
Other Reserves 34,577 34,577
- ------------------------------------------------------------------------------------------------------------------------
Retained earnings 180,461 156,342
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
TOTAL NON CURRENT ASSETS 2,502,227 2,614,893 TOTAL SHAREHOLDERS' EQUITY 823,800 796,773
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS TOTAL LIABILITIES AND NET
8,618,698 7,581,841 SHAREHOLDERS'S EQUITY 8,618,698 7,581,841
=====================================================================-==================================================
CREDICORP LTD. AND SUBSIDIARIES
INCOME STATEMENTS
For the periods ended December 31, 2002 and 2001
(In Thousands of U.S. Dollars)
For the 3 For the 3 For the 12For the 12
month period month month month
October 1st period period period
to December October 1st Jan. 1st Jan. 1st
31, 2002 to December to to
31, 2001 December December
31, 2002 31, 2001
- ---------------------------------------------------------------------------------------------------
INCOME 131,379 151,765 513,346 683,639
- ---------------------------------------------------------------------------------------------------
Interest Income 131,379 151,765 513,346 683,639
- ---------------------------------------------------------------------------------------------------
Interest on Deposits with banks 9,602 10,409 35,050 62,447
- ---------------------------------------------------------------------------------------------------
Interest and commissions from Interbank funds 628 125 1,465 3,076
- ---------------------------------------------------------------------------------------------------
Interest on trading securities 17,456 15,064 45,493 65,063
- ---------------------------------------------------------------------------------------------------
Interest on Loans 101,314 123,786 420,341 544,255
- ---------------------------------------------------------------------------------------------------
Income on notes receivables 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Interest and dividends on investment 490 380 2,293 2,387
- ---------------------------------------------------------------------------------------------------
Fees and other income on financial operations 1,889 2,001 8,704 6,411
- ---------------------------------------------------------------------------------------------------
Others 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Operating Income 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Other operating revenue 0 0 0 0
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
EXPENSES -43,587 -60,561 -178,070 -318,542
- ---------------------------------------------------------------------------------------------------
Interest Expense -43,587 -60,561 -178,070 -318,542
- ---------------------------------------------------------------------------------------------------
Interest and fees on obligations with the public -27,866 -41,163 -117,258 -220,024
- ---------------------------------------------------------------------------------------------------
Interest and fees on interbank funds -222 -287 -918 -1,762
- ---------------------------------------------------------------------------------------------------
Interest on deposits from other
financial and international institutions -214 -1,463 -2,350 -4,320
- ---------------------------------------------------------------------------------------------------
Interest on short term debt to banks and
correspondets -4,914 -10,100 -24,367 -57,415
- ---------------------------------------------------------------------------------------------------
Interest on long term debt to banks and
correspondents 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Interest and fees on other financial obligations -407 -9 -514 -63
- ---------------------------------------------------------------------------------------------------
Other interest expense -9,964 -7,539 -32,663 -34,958
- ---------------------------------------------------------------------------------------------------
Operating costs 0 0 0 0
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
GROSS FINANCIAL MARGIN 87,792 91,204 335,276 365,097
- ---------------------------------------------------------------------------------------------------
Provision for lower market value of investments 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Provision for possible loan losses, net -23,735 -40,394 -111,646 -134,357
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
NET INTEREST INCOME 64,057 50,810 223,630 230,740
- ---------------------------------------------------------------------------------------------------
Other Income 48,167 41,353 180,892 165,463
- ---------------------------------------------------------------------------------------------------
Other expense -24,506 -22,001 -97,901 -97,017
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
OPERATING MARGIN 87,718 70,162 306,621 299,186
- ---------------------------------------------------------------------------------------------------
Administrative expenses -108,246 -103,249 -391,242 -403,855
- ---------------------------------------------------------------------------------------------------
Cost of sales -5,300 -5,377 -18,181 -16,296
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
OPERATING RESULTS -25,828 -38,464 -102,802 -120,965
- ---------------------------------------------------------------------------------------------------
Financial income 48,059 82,171 190,582 215,449
- ---------------------------------------------------------------------------------------------------
Financial expense 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Other income and expense 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Result from exposure to inflation 384 835 -2,482 -2,575
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
Income before income taxes and extraordinary items 22,615 44,542 85,298 91,909
- ---------------------------------------------------------------------------------------------------
Participations 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Income taxes -5,987 -8,605 -32,628 -21,557
- ---------------------------------------------------------------------------------------------------
Income before extraordinary items 16,628 35,937 52,670 70,352
- ---------------------------------------------------------------------------------------------------
Extraordinary income 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Extraordinary expenses 0 0 0 0
- ---------------------------------------------------------------------------------------------------
Income before minority interests 16,628 35,937 52,670 70,352
- ---------------------------------------------------------------------------------------------------
Minority interest -3,110 -9,427 -10,287 -15,839
- ---------------------------------------------------------------------------------------------------
Net Income 13,518 26,510 42,383 54,513
- ---------------------------------------------------------------------------------------------------
Prefered dividends 0 0 0 0
- ---------------------------------------------------------------------------------------------------
NET ATTRIBUTABLE INCOME 13,518 26,510 42,383 54,513
- ---------------------------------------------------------------------------------------------------
Earnings per share 0.169511 0.330875 0.531468 0.680383
- ---------------------------------------------------------------------------------------------------
Diluted earnings per share 0.169511 0.330875 0.531468 0.680383
- ---------------------------------------------------------------------------------------------------
CREDICORP LTD. AND SUBSIDIARIES
Changes in Shareholder's Equity
For the periods ended December 31 of 2002 and 2001
(In Thousands of U.S. Dollars)
Common Capital Legal Special Retained Total
Shares Surplus Reserve Reserve Earnings
- ------------------------------------------------------------------------------------------------------------
Balances at January 1, 2001 400,607 145,064 69,527 28,659 138,873 782,730
- ------------------------------------------------------------------------------------------------------------
1. Changes in accounting practices
and correction of material errors 0 0 0 0 4,461 4,461
- ------------------------------------------------------------------------------------------------------------
2. Distribution and appropriation of profits 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
3. Dividends and participations 0 0 0 0 -23,908 -23,908
- ------------------------------------------------------------------------------------------------------------
4. New capital additions 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
5. Changes in premiums and donations 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
6. Increase or decrease due to mergers or spinoffs 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
7. Asset revaluations 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
8. Capitalization of equity accounts 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
9. Capital reductions 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
10. Profit (loss) net of the current period 0 0 0 0 54,513 54,513
- ------------------------------------------------------------------------------------------------------------
11. Other increase (decrease) of equity accounts -3,300 -6,044 0 5,918 -17,597 -21,023
- ------------------------------------------------------------------------------------------------------------
Balances at December 31, 2001 397,307 139,020 69,527 34,577 156,342 796,773
- ------------------------------------------------------------------------------------------------------------
Balances at January 1, 2002 397,307 139,020 69,527 34,577 156,342 796,773
- ------------------------------------------------------------------------------------------------------------
Changes in accounting practices
1. and correction of material errors 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
2. Distribution and appropriation of profits 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
3. Dividends and participations 0 0 0 0 -15,987 -15,987
- ------------------------------------------------------------------------------------------------------------
4. New capital additions 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
5. Changes in premiums and donations 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
Increase or decrease due
6. to mergers or spinoffs 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
7. Asset revaluations 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
8. Capitalization of equity accounts 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
9. Capital reductions 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------
10. Profit (loss) net of the current period 0 0 0 0 42,383 42,383
- ------------------------------------------------------------------------------------------------------------
11. Other increase (decrease) of equity accounts 1,428 1,480 0 0 -2,277 631
- ------------------------------------------------------------------------------------------------------------
Balances at December 31, 2002 398,735 140,500 69,527 34,577 180,461 823,800
- ------------------------------------------------------------------------------------------------------------
CREDICORP LTD. AND SUBSIDIARIES
Statement of Cash Flows
For the periods ended December 31 of 2002 and 2001
(In Thousands of U.S. Dollars)
For the 12 For the 12
month month period
period Jan. Jan. 1st to
1st to December 31,
December 2001
31, 2002
- ----------------------------------------------------------------------------------------------------------------
RECONCILIATION OF NET RESULTS WITH CASH AND
CASH EQUIVALENTS PROVIDED BY OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) FOR THE PERIOD 42,383 54,513
- ----------------------------------------------------------------------------------------------------------------
ADJUSTMENTS TO NET RESULTS OF THE PERIOD 0 0
- ----------------------------------------------------------------------------------------------------------------
Depreciation and amortization 44,371 46,732
- ----------------------------------------------------------------------------------------------------------------
Loan loss provision 111,646 134,357
- ----------------------------------------------------------------------------------------------------------------
Provision for securities and seized assets 26,566 26,714
- ----------------------------------------------------------------------------------------------------------------
Other provisions 0 0
- ----------------------------------------------------------------------------------------------------------------
Profit (loss) from the sale of securities -2,754 31,737
- ----------------------------------------------------------------------------------------------------------------
Profit (loss) from the sale of properties and equipment 0 0
- ----------------------------------------------------------------------------------------------------------------
Others 0 0
- ----------------------------------------------------------------------------------------------------------------
DEBITS AND CREDITS FROM NET CHANGES IN ASSETS AND LIABILITIES
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in receivables and other accounts receivables 8,105 -10,603
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in notes payables and other accounts payables -549 8,368
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in other assets 74,926 -47,252
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in other liabilities 53,812 -609
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS PROVIDED BY OPERATIONS 358,506 243,957
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
- ----------------------------------------------------------------------------------------------------------------
Increase from sale of properties and equipment 551 356
- ----------------------------------------------------------------------------------------------------------------
Increase from sale of other non financial assets 0 0
- ----------------------------------------------------------------------------------------------------------------
Purchase of properties and equipment -61,339 -28,086
- ----------------------------------------------------------------------------------------------------------------
Purchase of other non financial assets -167,810 -281,531
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS PROVIDED BY INVESTING ACTIVITIES -228,598 -309,261
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) net of deposits and obligations 1,004,211 87,281
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) net of obligations to banks and correspondents -31,754 -117,939
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) net of other financial liabilities 0 0
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) capital and capital surplus 2,908 -9,344
- ----------------------------------------------------------------------------------------------------------------
(Increase) decrease net of the loan portfolio -788,453 258,195
- ----------------------------------------------------------------------------------------------------------------
(Increase) decrease net of investments 0 0
- ----------------------------------------------------------------------------------------------------------------
Dividends received (paid) -31,881 -8,014
- ----------------------------------------------------------------------------------------------------------------
(Increase) decrease of other financial assets 0 0
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS PROVIDED BY FINANCING ACTIVITIES 155,031 210,179
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 284,939 144,875
- ----------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 1,897,452 1,752,577
- ----------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 2,182,391 1,897,452
- ----------------------------------------------------------------------------------------------------------------
For additional information please contact:
Jose Hung Alfredo Montero
Investor Relations General Manager
Banco de Credito Banco de Credito, Miami Agency
Phone: (511) 349-0590 Phone: (305) 448-0971
E-mail: jhungAbout Equalsbcp.com.pe Fax: (305) 448-0981
Web site: http://www.credicorpnet.com E-mail: amontero@bcpmiami.com
CREDICORP LTD. ANNOUNCES FINANCIAL RESULTS
FOR THE QUARTER ENDED DECEMBER 31, 2002
(Lima, Peru, February 11, 2003) - Credicorp Ltd. ("Credicorp") (NYSE:BAP;
LSE:BAPC1) today announced its financial results for the quarter ended December
31, 2002.
For the twelve month period ended December 31, 2002, Credicorp reported a
consolidated net income of US$42.4 million, improving over year 2001 net income
of US$54.5 considering that this included extraordinary gains of US$19.0 million
from sales of shares in Backus & Johnston and of a subsidiary in El Salvador,
that were effected in November 2001. Earnings per share were US$0.53 in 2002 and
US$0.68 in 2001.
In the fourth quarter of 2002 Credicorp had net income of US$13.5 million,
while net income in the year-ago quarter increased to US$26.5 million because of
the above mentioned extraordinary gains. Quarterly net income per share was
US$0.17 and US$0.33 in fourth quarter 2002 and 2001, respectively.
Full year 2002 operating results, as well as results in its fourth
quarter, improve over results in the same year-ago periods, mainly due
to higher non-financial income and lower loan loss provisions, which
offset lower net interest income and higher operating expenses.
I. CREDICORP LTD. AND SUBSIDIARIES
CREDICORP LTD. AND SUBSIDIARIES
SUMMARY OF RESULTS
(In U.S.$ millions, except net income per share)
Three months ended Twelve months ended
------------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.01 31.12.02
------------------------------------------------------------------------
Net interest income 94.5 77.5 79.2 376.2 335.3
Provisions for possible loan losses, net 40.4 32.2 23.7 134.4 111.6
Other income 116.4 89.6 104.8 357.5 371.5
Claims on insurance activities 22.0 25.5 24.5 97.0 97.9
Other expenses 102.9 94.9 113.5 407.9 409.4
Translation result 0.8 (0.9) 0.4 (2.6) (2.5)
Income before income
tax and minority interest 46.4 13.7 22.6 91.9 85.3
Income Tax (10.5) (8.8) (6.0) (21.6) (32.6)
Minority Interest (9.4) (1.8) (3.1) (15.8) (10.3)
Net Income 26.5 (2) 3.1 13.5 54.5 (2) 42.4
---------- ----- --- ---- ----- ----- --- -----
Net Income per share (1) 0.33 (2) 0.04 0.17 0.68 (2) 0.53
----- --- ---- ----- ----- --- -----
(1) Based on 79.5 million in 4Q01 and 79.8 million net outstanding shares at
3Q02 and 4Q02. The total number of shares is 94.4 million, however, as 14.6
million are held by affiliates as treasury shares, the net consolidated
outstanding shares are 79.8 million.
(2) Includes US$19.0 million (US$0.23 per share ) extraordinary gains on sales
of securities and a subsidiary.
I.1 PERUVIAN ECONOMIC SITUATION
Actual GDP growth rates continued to exceed market expectations. With
growth of 2.8% achieved in the first quarter 2002, 6.1% in the second and 5.2%
in the third, cumulative growth through November 2002 reached 4.8%. The recovery
of economic activity, is based, since the second quarter, on growth of
non-primary sectors, while in prior periods it depended on growth of the mining
sector brought by Antamina. Nevertheless, the recovery of the construction
sector, of non-primary manufacturing (which include textiles and cement
production) and of consumption, is noteworthy. In the first quarter of 2003 GDP
growth is expected to continue over 4%, slowingdown in the rest of the year
where growth should exceed 3% for total fiscal 2003.
Continuing a positive trend that began in the last quarter of 2001,
aggregate demand data show that Internal Demand increased 5.3% in the third
quarter of 2002, after increasing 1.0% and 4.8% in the first and second
quarters, repectively. Growth in the third quarter 2002, is mostly due to
increased private and public consumption, 5.8% and 3.8%, respectively, while
total investment grew 5.8% after dropping for seven consecutive quarters, since
the third quarter of 2000.
In the fourth quarter of 2002, the consumer price index in Peru increased
0.3%, lower than 0.6% inflation in each of the preceding two quarters.
Cumulative inflation in year 2002 was 1.5%, and remained below the 2.0% target
established for total 2002 by the Central Bank. The wholesale price index
declined 0.2% in the current quarter, after growing 1.7% in both the third
quarter and cumulative for the whole year 2002.
The average bank market Nuevos Soles exchange rate in Peru was S/.3.514 at
December 31, 2002, recovering from S/.3.644 at the end of the third quarter, a
3.6% revaluation. Cumulative devaluation for total year 2002 was 2.0%.
International reserves of the Central Bank decreased from US$9,857
million at September 30, 2002 to US$9,598 million at December 31,2002,
mostly due to seasonal withdrawals by banks.
During the fourth quarter 2002 both deposit and loan volumes had a
slight positive trend. Deposits in the fifteen commercial banks in the
system reached S/.49.2 billion (US$14.0 billion), according to the
Asociacion de Bancos del Peru (ASBANC) as of December 31, 2002,
remaining similar in nominal terms to the preceding quarter balance
due to the 3.6% lower exchange rate, but grows 5.9% compared to
year-ago deposits.
During the quarter ended December 31, 2002, local currency loans
in the banking system grew 6.2%, in nominal terms, to S/.7.6 billion
(US$2.2 billion), while foreign currency loans remained unchanged at
US$8.4 billion.
As of December 31, 2002, the Peruvian bank's average past due
ratio was 7.7%, better than 8.2% in September 2002, and 9.1% at
December 2001. It should be noted that these ratios are below actual
ones due to the benefits of government sponsored programs that
exchanged Treasury Bonds for past due loans. BCP decided not to take
advantage of these programs.
Commercial banks' past due loans decreased 7.9% during the current
quarter to S/.2.9 billion (US$813 million), and are 13.5% below bad
loans at December 2001 (in nominal terms). At December 31, 2002, loan
loss provisions were S/.3.8 billion (US$1.1 billion), decreasing
slightly during this quarter mostly due to the aforementioned exchange
rate revaluation. The system-wide past due loan coverage ratio was
133.8% at year-end 2002, better than 114.2% at the close of the prior
year.
During the fourth quarter 2002 commercial banks' local currency
interest rates increased, changing their negative trend due to the
exchange rate volatility and the Central Bank's policy change in favor
of monetary contraction. Local currency average loan rates (TAMN) were
21.1% in fourth quarter 2002, increasing from 20.0% in the preceding
third quarter of 2002, while deposits rates (TIPMN) grew to 3.7% from
3.2%, respectively. The average local currency interbank rates
increased from 3.7% in third quarter of 2002 to 4.1% in the current
quarter. Foreign currency loan rates (TAMEX) were 10.1% in fourth
quarter 2002, remaining similar to the preceding period, while deposit
rates (TIPMEX) decreased slightly to 1.4% from 1.5% in the third
quarter of 2002.
10
I.2 INTEREST INCOME AND OTHER INCOME
Net interest income in the fourth quarter of 2002 was US$79.2 million,
16.2% less than that earned in the same period of 2001, mostly due to lower loan
volumes and decreased interest margins. The net interest margin (net interest
income over average interest earning assets), on an annualized basis, was 4.97%
during the fourth quarter of 2002, lower than 6.16% in the year-ago quarter, and
also compared to 5.37% in the third quarter 2002. Net interest margin decreased
with respect to the preceding quarter principally due to lower lending rates in
foreign currency and higher funding costs in Nuevos Soles, noting the continuing
overall excess of liquid funds. The volume in interest earning assets, as an
average between quarterly ending balances, reached US$6,370 million in the
period, increasing 3.8% compared to US$6,136 million in the last quarter of
2001.
Non-interest income was US$104.8 million in the fourth quarter of 2002,
lower by 10.0% compared to US$116.4 million in the same period of 2001,
principally due to US$29.6 millions in gains from the sale of shares and a
subsidiary in November 2001, as mentioned before, and registered in the
securities transactions caption. Income from banking fees in the fourth quarter
of 2002 increased 5.5% compared to revenue in the year-ago period, reaching
US$44.2 million. Non-interest income components were as follows:
4Q01 3Q02 4Q02 4Q02 4Q02 vs.
(In US$Mn) vs. 4Q01
3Q02
- -------------------------------------------------------------------------------------------
Commissions for banking services(1) 41.9 43.8 44.2 0.9% 5.5%
Net premiums 27.2 31.3 30.9 -1.5% 13.3%
Gains from sale of securities 32.9 -5.7 5.4 N/A -83.5%
Gains from foreign exchange 4.0 5.5 7.0 25.7% 73.2%
Other non-interest income 10.3 14.6 17.3 18.5% 68.5%
Total Non-Interest Income 116.4 89.6 104.8 16.9% -10.0%
- -------------------------------------------------------------------------------------------
(1) Credicorp's results show reclassifications by BCP, made on prior periods
for comparison purposes, in the income from banking fees and general
expenses concepts, of expenses incurred to provide certain services and
recovered from clients through fees. Starting in 2Q02, financial statements
show fee income net of these expenses, which were previously reported as
part of general expenses.
I.3 OTHER NON-INTEREST EXPENSES
Other non-interest expenses, which include provisions for assets received
in lieu of loan repayment and employee profit sharing expense, amounted to
US$113.5 million in fourth quarter 2002, 10.3% higher than in the same period of
the previous year. Higher expenses are principally explained by BCP's US$4.0
million non-recurrent expenses (see Section II.4), expense from Banco Santander
Central Hispano Peru ("BSCH Peru") acquired by BCP (see Sections II.1 and II.5)
of US$3.5 million, and US$3.0 million due to severance payments for personnel
reduction and the closing of BCP's New York office. Credicorp's other expense
components had the following variations:
11
4Q01 3Q02 4Q02 4Q02 vs. 4Q02 vs.
(% change and US$Mn) 3Q02 4Q01
- ------------------------------------------------------------------------------------------------
Salaries and employee benefits 43.9 43.6 49.5 13.6% 12.9%
General, administrative, and taxes(1) 31.2 33.0 39.8 20.8% 27.7%
Depreciation and amortization 12.4 10.7 11.5 7.7% -6.9%
Other 15.4 7.6 12.6 66.8% -18.1%
Total Other Expenses 102.9 94.9 113.5 20.0% 10.3%
- ------------------------------------------------------------------------------------------------
(1) See note in the preceding table.
The efficiency ratio (adjusted operating expenses, determined by netting
provisions for assets received in lieu of loan repayment, employee profit
sharing expenses and non-recurrent expenses) as a percentage of total income,
without extraordinary concepts, increased to 55.6% in the fourth quarter of 2002
having been 49.4% in the same period last year. Nevertheless, the efficiency
ratio improved for full year 2002 to 52.0% from 52.9% in 2001. As explained in
Section II.4, BCP registered US$4.0 million of non-recurrent expenses in this
quarter, and US$12.5 million for total 2002. Adjusted operating expenses as a
percentage of average total assets was 5.1% the current period, higher than 4.9%
in the year-ago quarter.
I.4 ASSETS AND LIABILITIES
Credicorp's totals assets were US$8.6 billion at December 31, 2002, 16.5%
over the balance at the start of the quarter, and grows 13.6% compared to the
ending balance of 2001. The loan portfolio as of December 31, 2002 totaled
US$4.8 billion, increasing 24.5% during the present quarter, and are 18.5%
higher than the year-ago balance. Deposits and other obligations reached US$6.8
billion at December 31, 2002, a 19.9% increase in the current quarter, and 18.0%
in year 2001. Loans and deposits grew in the current quarter mostly due to
volume from BSCH Peru. Due to banks and correspondents, which closed at US$309.7
million, remained almost unchanged during the present quarter, but declined 9.3%
from US$341.5 million in December 2001.
Loan quality indicators are shown in the following table:
(In US$Mn) 4Q01 3Q02 4Q02
- ----------------------------------------------------------------------
Total loans 4,064.5 3,869.6 4,817.7
Past due loans 350.8 310.4 405.3
Loan loss reserves 344.4 310.8 420.8
Past due / Total loans 8.6% 8.0% 8.4%
Reserves / Past due 98.2% 100.1% 103.8%
- ----------------------------------------------------------------------
The balance of past due loans increased from US$310.4 million in the
preceding quarter to US$405.3 million at the end of 2002, which included
US$116.3 milion from BSCH Peru (see Section II.5), and after charge-offs
amounting to US$34.5 million.
12
I.5 SUBSIDIARIES
Credicorp's principal subsidiaries contributed to consolidated net income
as follows:
(US$Mn) 4Q01 3Q02 4Q02 12m01 12m02
- ----------------------------------------------------------------------------------
Banco de Credito BCP US$11.9 US$10.0 US$22.5 US$45.7 US$59.8
Atlantic 0.5 0.1 0.2 4.6 1.6
PPS 19.4 2.7 0.7 18.7 7.0
Banco Tequendama -0.1 -3.1 -0.9 -1.8 -4.4
Credicorp and others* -5.2 -6.6 -9.0 -12.7 -21.6
Consolidated Net Income US$26.5 US$ 3.1 US$ 13.5 US$54.5 US$42.4
- ----------------------------------------------------------------------------------
* Includes Inversiones Credito and Grupo Capital (for contributions through
Nov. 2001).
In the preceding table, the Credicorp and others concept contribute a loss
of US$9.0 million in the current quarter, which is mostly due to a US$3.0
million provision for impaired value of investments, and US$2.7 million of
provisions on substandard loans transferred from Banco Tequendama. For total
2002, the US$21.6 millones negative contribution is due to Credicorp's US$12.8
million of losses assumed on behalf of Banco Tequendama, of which US$6.5 million
corresponded to provisions for transferred loans, and US$6.3 million to exchange
losses caused by the devaluation of the Colombian Peso and the Venezuelan
Bolivar. Comparing with the previous year, in full year 2001 Credicorp had
US$2.4 million cumulative provisions for loans transferred from Banco
Tequendama, while there were no provisions for this concept in the fourth
quarter of 2001.
In the present quarter, Banco de Credito BCP contributed US$22.5 million to
Credicorp's net income, while its results according to Peruvian accounting
principles reported in Section II, amounted to US$12.1 million, with the
difference mainly due to higher translation gains registered on Credicorp's
records (US$1.2 million) compared to inflation adjustment losses (US$9.9
million), which includes exchange losses on foreign currency asset positions in
BCP's accounting based on domestic currency.
PPS's contributions to Credicorp in full year 2001 (US$18.7 million) and in
the fourth quarter of that year (US$19.4 million) are lower than results
according to Peruvian accounting principles (US$60.9 million and US$60.1
million, respectively, see section IV), principally due to lower gains from the
sale of Backus & Johnston shares. From this operation, approximately a US$20
million gain was obtained by Credicorp, net of provisions, while a US$54 million
net profit was recorded in PPS's local books. The lower profit is due to the
higher cost of these shares as registered in Credicorp's books, according to
market valuation at Credicorp's inception, compared to historic cost at PPS.
Below are brief comments on some of the subsidiaries not discussed in the
following sections of this report:
Banco de Credito de Bolivia ("BCB"), Bolivia
Credicorp holds a 99.7% interest in BCB, directly and through various
subsidiaries, and it is consolidated within BCP's financial statements. The
Bolivian economy, after an stagnant year 2001, is expected to grow 2% in 2002
and may not reach 3% growth in 2003, lower than previously expected due to the
government's fiscal difficulties and lower foreign investments. President
Sanchez de Lozada, that took office in August, has relaxed monetary policy,
facing social unrest with measures in favor of social security and public
pension plans, increasing difficulties in financing a budget deficit that
amounts to 7% of GDP. The general price level grew only 2.5% in 2002 (0.02% as
of June 2002), reflecting the weakness in demand, and continues to be below
devaluation which was 9.8% in the year, with an ending exchange rate of 7.50
Bolivianos per U.S. Dollar.
13
Loan volume in the banking system continued to decline, which has led the
Superintendency to relax regulations on past due loans and loan restructuring
requirements. After falling by 10.8% in 2000 and 16.4% in 2001, loans decreased
11.7% in 2002, to finish at US$2,691 million. Loan quality continued to
deteriorate, from a past due ratio of 16.1% in December 2001, to 17.6% in
December 2002, but improves from 21.6% at September 2002 mostly due to the
regulation change that allows overdue loans with less than 30 days past due not
to be registered as past due. Total deposits in the system amounted to US$2,729
million at December 2002, lower by 13.6% compared to December 2001.
BCB's market share in deposits at the end of 2002 was 12.7%, similar to
12.5% at the end of September 2002, remaining as the fifth bank of twelve banks
in the system. In terms of loans, BCB ranked as the fourth in the system with
11.7% market share, also similar to 11.9% it had last September.
As of December 31, 2002, BCB had total loans of US$313.3 million which
compares to the US$322.4 million at September 2002, and US$391.5 million at
year-end 2001. At the end of the fourth quarter 2002, BCB's past due loans
reached US$67.6 million, or 21.6% of total loans, lower than 25.3% at September
2002, but remains over 14.2% at December 2001. Coverage of past due loans with
loan loss provisions increases from 57.6% as of December 2001 to 62.5% in
December 2002.
In 2002, loan provisions charged against results in BCB's records amounted
to US$14.2 million, compared to US$18.2 million charged during 2001. During
2002, an additional US$16.0 million in loan loss provisions were incurred at the
BCP level to cover BCB's impaired assets, while in full 2001 an additional
US$13.6 million were provisioned by Credicorp (US$7.0 million) and at the BCP
level (US$6.6 million).
Total year 2002 net income was only US$22 thousand, compared to US$1.3
million in 2001, decreasing principally due to lower net interest income,
partially offset by higher gains on sale of securities.
Banco Tequendama, Colombia
Colombian GDP grew 1.6% through September 2002, with relatively high growth
of 2.2% in the second quarter and 1.9% in the third. Economic activity continues
giving slight signs of improvement, led by expansion of the construction and
manufacturing sectors, that grew 6.3% and 2.4% in the third quarter,
respectively.
Following the 18.8% devaluation in the third quarter 2002, the exchange
rate remained almost unchanged in the last quarter, ending 2002 at Co$2,865 per
US$1, resulting in a cumulative devaluation of 25% in the year. Inflation
increased from 0.5% in the third quarter 2002 to 1.6% in the current period,
reaching 7.0% in the year, which exceeded the official 6% target.
During the quarter, interest rates continued a slow decline, with the DTF
rate decreasing from 8.91% last September to 7.70% at the end of December 2002.
After several years of successive lower Central Bank intervention rates with the
objective of helping the recovery of economic activity, in January 2003 rates
were increased 100 basis points to control inflation.
Banking system statistics show that loans decrease from US$15.7 billion at
December 2001, to US$14.4 billion at the close of October 2002, with the
past-due ratio increasing to 13.4%, from 10.3% at year-end 2001. Total deposits
in the banking entities were US$18.7 billion at the end of October 2002,
decreasing 16.2% since December 2001.
14
Banco Tequendama's loan market share, as of October 2002, was 1.43%, lower
than 1.49% obtained in December 2001. At the same dates, deposit market share
decreased to 0.74% from 0.78%.
As of December 31, 2002, Banco Tequendama's loans were US$211.7 million,
remaining similar to the preceding quarter balance, but decreases from US$245.1
millon as of December 2001. At the end of 2002, deposits totaled US$154.1
million, decreasing slightly compared to US$159.2 million in September 2002,
decreasing also from US$227.4 million at the year-ago period.
The past due loan ratio was 4.3% in December 2002, improving from 4.7% at
the end of last September, while coverage with provisions was 67.0%, compared to
72.7%, respectively.
15
II. BANCO DE CREDITO DEL PERU AND SUBSIDIARIES ("BCP")
II.1 NET INCOME
Consolidated net income for the year ended December 31, 2002 was
S/.228.1 million (US$64.9 million), increasing 24.7% compared to net
income of S/.182.9 million (US$52.1 million) in 2001. Net income for
the quarter ended December 31, 2002 was S/.42.5 million (US$12.1
million), lower than S/.47.0 million (US$13.4 million) in the fourth
quarter of 2001. Results in year 2002 increased compared to the
previous year principally due to higher non-interest income and lower
loan loss provisions, that offset decreased net interest income and
higher operating expenses. These same changes are noted comparing
fourth quarter 2002 net income with the year-ago period, except for
the negative inflation adjustment result, due to the strenghtening of
the Nuevo Sol exchange rate in the last quarter, explaining the lower
current period profits.
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
SUMMARY OF RESULTS (1)
(In constant S/. and U.S.$ millions, except net income per share)
------------------------------------------------------------------------------
Three months ended Twelve months ended
------------------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.02 31.12.01 31.12.02 31.12.02
------------------------------------------------------------------------------
US$ US$
Net interest income 289.4 261.9 281.8 $80.2 1,164.3 1,098.2 $312.5
Provisions for loan losses, net 113.7 110.1 69.0 $19.6 428.5 369.7 $105.2
Other income 189.8 195.1 212.4 $60.4 675.8 778.3 $221.5
Other expenses 295.9 291.2 326.7 $93.0 1,145.8 1,201.5 $341.9
Result from exposure to inflation 12.9 27.3 (34.6) ($9.9) (1.5) 16.8 $4.8
Income before income tax 82.4 83.1 63.8 $18.2 264.4 322.0 $91.6
Income Tax 35.4 21.9 21.3 $6.1 81.5 93.9 $26.7
Net Income 47.0 61.2 42.5 $12.1 182.9 228.1 $64.9
Net Income per share (2) 0.044 0.057 0.039 $0.011 0.170 0.212 $0.060
(1) Financial statements prepared according to Peruvian GAAP. The financial
information is in constant soles as of December 31, 2002. Figures in US$
have been translated at the exchange rate of S/.3.514 to the dollar.
(2) Based on 1,076 million outstanding shares in all periods.
16
During the fourth quarter of 2002 BCP acquired Banco Santander Central
Hispano Peru ("BSCH Peru"), which is included in BCP's consolidated financial
statements since the beginning of December 2002. The following summary of
results, according to Peruvian GAAP, corresponding to the month of December
2002, should be considered only for reference since they include numerous non
recurring adjustments due to the acquisition and pending merger.
BSCH Peru Results month of December 2002 S/.Mn US$Mn(1)
- ----------------------------------------------------------------------
Net interest income 18.2 5.2
Provisions for loan losses, net 0.0 0.0
Other income 7.5 2.1
Other expenses 12.7 3.6
Result from exposure to inflation 0.8 0.2
Income before income tax 13.9 3.9
Income Tax 4.2 1.2
Net Income 9.7 2.8
- ----------------------------------------------------------------------
(1) Translated at the exchange rate of S/.3.514 per US$1.
II.2 NET INTEREST INCOME
Interest income, net of interest payments, in the fourth quarter of 2002
reached S/.281.8 million (US$80.2 million), decreasing 2.6% compared to the same
period of last year, but grew 7.6% compared to the preceding third quarter of
2002. The decline versus the prior year quarter is mainly due to lower interest
margins, within a persistent excess liquidity environment in both local and
foreign currencies.
During the fourth quarter of 2002, the net interest margin was 5.38%,
decreasing from 5.57% in the third quarter of 2002, and also compared to 6.15%
during the last quarter of 2001. During the current quarter the margin decreased
mostly due to continued declining loan rates in foreign currency and higher
local currency deposit interest rates.
II.3 NON-INTEREST INCOME
Non-interest income, including fee revenue and other non-interest items, in
the fourth quarter of 2002 amounted to S/.212.4 million (US$60.4 million), 11.9%
higher than income earned during the same period of 2001, while total year 2002
revenue grew 15.2%, reaching S/.778.3 million (US$221.5 million), mostly due to
higher banking services fees and increased recoveries of charged-off accounts
and provisions of prior years.
In the fourth quarter of 2002, fees from banking services amounted to
S/.148.5 million (US$42.2 million), 14.1% higher than in the same period of
2001, mostly due to increased revenue from account maintenance and credit card
fees. (See note in table of Section I.2.) In the quarter, fees on the most
important banking services had the following growth rates:
17
(In constant S/. Mn.) 4Q01 4Q02 Growth
- ----------------------------------------------------------------------
Contingent credits 6.7 8.1 20.9%
Foreign Trade 5.9 7.9 33.9%
Account Maintenance 29.9 37.9 26.8%
Insurance 6.0 6.2 3.3%
Collections fees 14.0 16.3 16.4%
Fund transfer services 24.2 26.1 7.9%
Credit card fees 14.7 18.4 25.2%
Brokerage 6.6 8.6 30.3%
Corporate Finance 3.9 4.3 10.3%
Loan administration 1.7 0.8 -52.9%
Shipping and handling 6.5 6.9 6.2%
Other 10.1 7.0 -30.7%
Total 130.2 148.5 14.1%
- ----------------------------------------------------------------------
In the fourth quarter of 2002, securities transactions resulted in gains of
S/.4.7 million (US$1.4 million), compared to the last quarter of 2001 which had
gains of S/.21.2 million (US$6.0 million) due to recoveries of excess
provisions. The general index of the Lima Stock Exchange increased 21.0% in the
fourth quarter of 2002, growing a cumulative 18.3% in the year 2002.
Gains from foreign exchange operations were S/.23.5 million (US$6.7
million) in the fourth quarter of 2002, 50.4% over revenue in the same period in
2001, mainly due to increased traded volumes, while margins remained almost
unchanged.
The Other Income caption, where reversals of prior year expenses and
provisions and recoveries of certain operating costs from clients are booked,
increased from S/.22.7 million (US$6.5 million) in the fourth quarter of 2001 to
S/.35.6 million (US$10.1 million) in the current period, principally due to
increased recoveries of accounts charged-off in previous periods and prior years
provisions.
II.4 OTHER NON-INTEREST EXPENSES
Non-interest expenses during the fourth quarter of 2002 were S/.326.7
million (US$93.0 million), 10.4% above those of the same period in 2001, mainly
due to increased personnel and general expenses. Adjusted operating expenses,
determined by excluding provisions for assets received in lieu of loan
repayment, non recurring expenses and employee profit sharing expenses, reached
S/.287.1 million (US$81.7 million) in the fourth quarter of 2002, increasing
7.3% compared to the year-ago period.
Approximately 45% of non-interest expenses were attributable to employee
salaries and other expenses related to personnel. This concept increased 23.4%
to S/.147.5 million (US$42.0 million) when compared to the fourth quarter of
2001, due principally to increased expenses in subsidiaries BSCH Peru and
Solucion, and at the Miami office, higher bonuses and severance payments,
including payments for the closing of the New York office. At the end of the
fourth quarter 2002 the number of employees stood at 8,356, increasing from
7,977 employees as of September 2002, mainly due to 685 employees included from
BSCH Peru, partly offset by lower fixed positions at Banco de Credito del Peru,
Solucion Financiera and Banco de Credito de Bolivia.
General and Administrative expenses, which represented 34% of non-interest
expenses, reached S/.111.1 million (US$31.6 million) in the fourth quarter of
2002, increasing 24.9% when compared to expenses in the same period a year ago
mainly from non-recurring increases in expenses related to systems, third party
fees and marketing, while BSCH Peru's expenses amounted to S/.4.0 million
(US$1.2 million). Non-recurring expenses are related to BCP's new identity
campaign and system's restructuring projects, and in the twelve months through
December 2002 amounted to S/.44.1 million (US$12.5 million), while S/.14.2
million (US$4.0 million) were incurred in fourth quarter 2002. (See note in
table of Section I.2.) In the quarter, the most significant general and
administrative expenses were:
18
(In constant S/. Mn.) 4Q01 4Q02 Chnge.
- ----------------------------------------------------------------------
Office supplies and operating costs 11.9 14.1 18.5%
Communications 8.8 10.0 13.6%
Third party fees 11.3 23.5 108.0%
Insurance and security 9.0 7.6 -15.6%
Transport of currency and securities 12.7 12.0 -5.5%
Systems and maintenance 15.1 19.2 27.2%
Advertising and marketing 17.5 18.2 4.0%
Other G&A 2.6 7.0 150.0%
Total G&A 88.9 111.1 24.9%
- ----------------------------------------------------------------------
The Other caption within Other Non-Interest Expenses, decreased from
S/.48.9 million (US$13.9 million) in the fourth quarter of 2001 to S/.29.8
million (US$8.5 million) in the current quarter, mainly due to lower provisions
for contingencies registered within this caption.
The ratio of adjusted operating expenses (determined by excluding
provisions for assets received in lieu of loan repayment, employee profit
sharing expense and non-recurring expenses) as a percentage of average total
assets, slightly decreased from 5.0% in the fourth quarter of 2001 to 4.9 in the
current period.
Adjusted operating expenses, as a percentage of total income, increased
from 55.8% to 58.1% when comparing the fourth quarters of 2001 and 2002,
respectively, but improves for total year figures to 55.9% in 2002 from 56.6% in
2001.
19
II.5 ASSETS AND LIABILITIES
Total assets of BCP reached S/.25,517 million (US$7,261 million) at the end
of December 2002, increasing 22.0% with respect to the balance at the end of the
preceding quarter, and by 21.4% compared to assets at December 2001. Balance
sheet changes during the fourth quarter 2002 are mostly due to the inclusion of
BSCH Peru, which is consolidated by BCP in its financial statements since the
beginning of December 2002. A summary balance sheet of BSCH Peru at December 31,
2002, is shown in the following table:
BALANCE SHEETS as of 31.12.02
---------------------------------------------------------
ASSETS BSCH Peru BCP Consolidated
---------------------------------------------------------
S/.Mn US$Mn(1) S/.Mn US$Mn(1)
----------- ------------ ---------- -----------
CASH AND DUE FROM BANKS 908 $258 7,296 $2,076
MARKETABLE SECURITIES, net 78 $22 1,938 $552
LOANS 2,528 $719 15,653 $4,454
- ----- ------ ---- ------- ------
Current 2,165 $616 14,313 $4,073
Past Due 363 $103 1,340 $381
Less - Reserve for possible loan losses (409) ($116) (1,457) ($415)
LOANS NET 2,120 $603 14,196 $4,040
- ---------- ------ ---- ------- ------
0 1
INVESTMENT SECURITIES AVAILABLE FOR SALE 7 $2 416 $118
PROPERTY, PLANT and EQUIPMENT, net 146 $42 779 $222
OTHER ASSETS 169 $48 891 $253
TOTAL ASSETS 3,427 $975 25,517 $7,261
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS AND OBLIGATIONS: 2,920 $831 21,802 $6,204
DUE TO BANKS AND CORRESPONDENTS 82 $23 555 $158
OTHER LIABILITIES 241 $69 1,165 $331
SHAREHOLDERS EQUITY: 183 $52 1,995 $568
---- ------
TOTAL LIABILITIES AND EQUITY 3,427 $975 25,517 $7,261
Contingent Credits 1,231 $350 5,465 $1,555
- -----------------------------------------------------------------------------------------------------------------
(1) Translated at S/.3.514 per US$1.00.
Consolidated total loans were S/.15,653 million (US$4,454 million) at the
end of December 2002, increasing 22.7% compared to September 2002, and by 21.5%
with respect to year-end 2001. At December 31, 2002, the loan portfolio, net of
provisions, represented 55.6% of total assets, higher than 55.2% a year-ago. At
the end of the fourth quarter of 2002, the Nuevos Soles portion of the loan
portfolio was 15.2%, slightly over 14.9% in September 2002, but below 15.8% as
of December 2001.
As of December 31, 2002 total deposits were S/.21,802 million (US$6,204
million), increasing 18.7% during the current quarter, and by 22.1% since the
beginning of the year. During the present quarter, demand deposits grew 26.3%,
time deposits increased 18.9% and savings deposits by 12.6%. Deposits
denominated in Nuevos Soles were 21.8% of total deposits, remaining similar to
21.9% at September 2002, but increasing over 19.8% at the end of December 2001.
20
BCP's subsidiaries had the following loan, net of provisions, and deposit
contributions:
Loans, net Total Deposits
(In % and constant S/.Mn. ) 4Q01 3Q02 4Q02 4Q01 3Q02 4Q02
- ---------------------------------------------------------------------------------------------------------------
Banco de Credito del Peru 71.1% 81.4% 71.3% 79.8% 88.6% 76.9%
Banco Santander Peru -.- -.- 14.9% -.- -.- 13.4%
Banco de Credito de Bolivia 13.1% 9.2% 6.6% 9.8% 7.0% 6.0%
Banco de Credito Overseas 9.5% 1.3% 0.5% 7.3% 0.5% 0.3%
Credito Leasing 4.9% 6.1% 4.8% 2.7% 3.0% 2.4%
Solucion Financiera de Credito 1.4% 2.0% 1.9% 0.4% 0.9% 1.0%
TOTAL% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
- ---------------------------------------------------------------------------------------------------------------
BCP consolidated Total S/.11,693 S/.11,632 S/.14,196 S/.17,863 S/.18,371 S/.21,801
- ---------------------------------------------------------------------------------------------------------------
According to statistics from the Peruvian Banking Association (ASBANC) for
Peruvian commercial banks as of December 31, 2002, Banco de Credito del Peru had
a total loan market share of 29.7% (27.8% at September 30, 2002 and 27.2% at
December 31, 2001), and 34.0% of deposits (32.9% at September 30, 2002 and 30.9%
at December 31, 2001). At December 31, 2002, BSCH Peru's loan market share was
6.6% and 4.7% of deposits.
Loan portfolio composition by business segment developed as follows:
(In % of total and constant S/. Mn) 31.12.01 30.09.02 31.12.02
- ----------------------------------------------------------------------
Corporate 44.9% 46.7% 42.6%
Middle market 27.0% 26.3% 28.3%
Retail: 28.1% 27.0% 29.1%
- - small business 9.7% 10.2% 9.8%
- - home mortgage 9.9% 8.8% 11.7%
- - consumer 5.1% 4.7% 4.2%
- - credit cards 3.3% 3.3% 3.4%
Total 100.0% 100.0% 100.0%
- ----------------------------------------------------------------------
Total Loans S/.12,883 S/.12,752 S/.15,653
- ----------------------------------------------------------------------
In the current quarter, loan balances grew 22.7%, middle market loans
higher by 32.2% to S/.4,436 million (US$1,262 million), retail loans by 31.9% to
S/.4,546 million (US$1,294 million), and corporate loans higher by 12.1% to
S/.6,671 million (US$1,898 million). Retail loans by product performed as
follows:
21
4Q01 3Q02 4Q02 4Q02 vs 4Q02 vs
(% change and constant S/. Mn) 3Q02 4Q01
- -------------------------------------------------------------------------------------
Small business loans 1,247 1,298 1,535 18.3% 23.0%
Mortgage loans 1,270 1,126 1,825 62.0% 43.7%
Consumer loans 657 601 657 9.3% 0.0%
Credit card loans 437 421 529 25.5% 21.1%
Total Retail 3,611 3,447 4,546 31.9% 25.9%
- -------------------------------------------------------------------------------------
At December 31, 2002 contingent credits were S/.5,465 million (US$1,555.3
million), increasing 21.4% during the current quarter, and by 52.4% over the
December 2001 figure, as can be seen in the following chart:
4Q01 3Q02 4Q02 4Q02 vs 4Q02 vs
(% change and constant S/. Mn) 3Q02 3Q01
- -----------------------------------------------------------------------------
- - Guarantees and Stand-by LCs 1,776 1,874 2,383 27.1% 34.2%
- - Letters of Credit 344 391 380 -2.8% 10.4%
- - Acceptances 128 107 145 36.1% 13.8%
- - Foreign currency forwards 682 1,489 1,572 5.6% 130.7%
- - Other contingent accounts 657 641 985 53.7% 49.8%
Total Contingent Credits 3,586 4,502 5,465 21.4% 52.4%
- -----------------------------------------------------------------------------
II.6 LOAN QUALITY
Balances at December 31, 2002 include S/.363 million (US$103.4 million) of
overdue loans from BSCH Peru. Nevertheless, loan quality improvement in other
units of BCP partly offset this effect.
Consolidated past due loans amounted to S/.1,340 million (US$381.2 million)
at December 31, 2002, increasing 28.8% over the balance of S/.1,040 million
(US$296.1 million) as of the end of the third quarter of 2002, and 18.4% over
S/.1,132 million (US$322.1 million) at year-end 2001. The ratio of past due
loans as a percentage of total loans improved from 8.79% in December 2001 to
8.56% at December 31, 2002, but slightly increased compared to 8.16% at
September 30, 2002.
At the end of the fourth quarter 2002, outstanding balances of loan loss
provisions totaled S/.1,457 million (US$414.6 million), increasing 30.1%
compared to the preceding quarter, mainly due to the inclusion of S/.409 million
(US$116.3 million) from BSCH Peru. The ratio of loan provisions to past due
loans was 108.8% at the end of 2002, slightly higher than the 107.7% at
September 2002 and better than 105.1% past due coverage at December 2001.
Of total provisions outstanding at the end of the current quarter, S/.180.4
million (US$51.3 million) correspond to generic provisions assigned to loans in
the Normal (A) risk category, increasing from generic provisions of S/.156.4
million (US$44.5 million) at September 30, 2002, mostly due to S/.23.5 million
(US$6.7 million) included from BSCH Peru. Additionally, at year-end BSCH Peru
had a US$22.9 million voluntary reserve pending of final allocation.
Loans believed to be unrecoverable, fully provisioned in prior periods, and
written-off during the fourth quarter 2002 amounted to S/.121.3 million (US$34.5
million), of which approximately 8% were related to consumer loans and 11% to
agricultural loans under the Agricultural Financial Relief ("RFA") program. This
compares to charge-offs in the third quarter of 2002 of S/.98.7 million (US$28.1
million), and S/.153.3 million (US$43.6 million) in the year-ago fourth quarter.
22
At the end of the quarter, refinanced loans amounted to S/.896.8 million
(US$255.2 million), growing over the balance at September 2002 that was S/.816.5
million (US$232.4 million) mainly due to refinanced loans from BSCH Peru
amounting to S/.200.5 million (US$57.1 million).
Loans classified as Substandard (i.e., Deficient, Doubtful and Loss) were
17.7% of the loan portfolio in December 2002, decreasing from the ratios of
19.5% and 19.0% that resulted in December 2001 and September 2002, respectively.
The loan classification is as follows:
(% of Total loans and S/.Mn const.) 31.12.01 30.09.02 31.12.02
- --------------------------------------------------------------------------
A: Normal 69.6% 70.8% 72.2%
B: Potential Problem 11.0% 10.2% 10.1%
C: Deficient 8.3% 9.2% 7.3%
D: Doubtful 4.9% 5.0% 5.3%
E: Loss 6.3% 4.8% 5.1%
Total 100.0% 100.0% 100.0%
- --------------------------------------------------------------------------
Total Loans S/.12,883 S/.12,752 S/.15,653
- --------------------------------------------------------------------------
Loan loss provisions, net of recoveries, charged in total year 2002
amounted to S/.369.7 million (US$105.2 million), 13.7% lower than S/.428.5
million (US$121.9 million) in 2001. Provision expense in 2002 include US$30
million for the past due portfolio of the Bolivian subsidiary, of which US$16.0
million were registered at the BCP level in addition to US$6.6 million
provisioned in 2001 (see Section I.5 - BCB). In the fourth quarter of 2002, loan
loss provisions, net of recoveries, for the amount of S/.69.0 million (US$19.6
million) were charged against income, decreasing from S/.110.1 (US$31.3 million)
provisioned in the third quarter 2002, and also compared to provision expense in
the last quarter of 2001 which was S/.113.7 million (US$32.4 million). Quarterly
provision expense charged by each business segment is as follows:
(% of Provision expense and S/.Mn const.) 4Q01 3Q02 4Q02
- -----------------------------------------------------------------------------
Corporate Banking 15.6% 25.7% 43.9%
Middle Market 29.5% 37.8% 40.0%
Retail 54.9% 36.5% 16.1%
Total 100.0% 100.0% 100.0%
- -----------------------------------------------------------------------------
Total Provision Expense, net S/.113.7 S/. 110.1 S/. 69.0
- -----------------------------------------------------------------------------
II.7 CAPITAL ADEQUACY
At the end of the fourth quarter of 2002, BCP's unconsolidated ratio of
risk-weighted assets to regulatory capital was 9.6 to 1.0 (10.4%), while the
corresponding consolidated ratio was 8.0 to 1.0 (12.5%). Risk-weighted assets
include S/.714.7 million (US$203.4 million) of market-risk exposure whose
coverage required S/.65.0 million (US$18.5 million) of regulatory capital at
December 31, 2002. Peruvian regulations limit risk-weighted assets to a ratio of
11.0 to 1.0 (9.1%).
As of December 31, 2002, BCP's consolidated "regulatory capital" was
S/.2,255 million (US$641.8 million), increasing compared to S/.2,002 million
(US$569.8 million) in the preceding quarter mostly due to higher retained
earnings, S/.100 million to be capitalized in March 2003, and higher
subordinated debt. Regulatory capital included S/.140.2 million ($39.9 million)
in subordinated debt in the current period, increasing from S/.89.8 million
(US$25.6 million) at September 2002.
23
BCP BCP
unconsolidated consolidated
(In constant S/. Mn.) 31.12.01 31.12.02 31.12.01 31.12.02
- ----------------------------------------------------------------------
Regulatory capital 1,404 1,409 2,005 2,255
Risk weighted assets 13,183 13,570 16,499 17,981
Weighted assets / Capital 9.4 9.6 8.2 8.0
Capital / Weighted Assets 10.7% 10.4% 12.2% 12.5%
- ----------------------------------------------------------------------
24
III. ATLANTIC SECURITY HOLDING CORPORATION AND SUBSIDIARIES ("ASHC")
Consolidated net income for the year ended December 31, 2002 was US$5.8
million, 2.2% over US$5.6 million in 2001. Fourth quarter 2002 net income was
US$0.2 million, compared to US$0.5 million in the year-ago quarter. Net income
in the current quarter decreases compared to the prior year period due to lower
net interest income, partly offset by reduced personnel expenses.
Net interest income before risk provisions, which includes dividend income,
was US$3.9 million in the fourth quarter of 2002, lower than US$4.8 million in
the last quarter of 2001. Dividends received in both periods were not
significant.
Net interest margin, without considering dividends and investments in
equity shares, was 2.7% during fourth quarter 2002, under the 3.0% margin in the
preceding quarter and also in the year-ago period. The margin decreases mainly
due to the portfolio shift from higher return fixed income securities in favor
of investment grade papers, that offer lower interest rates but that will reduce
balance sheet volatility.
In the fourth quarter of 2002 charges against income for market risk
provisions amounted to US$2.1 million, increasing from US$1.0 million charged in
the preceding quarter, but lower than US$3.0 million provisioned in the year-ago
period. In the current quarter US$0.8 million were also provisioned for credit
risks, increasing over US$0.3 million in the preceding period.
Other Income, which includes fee income and realized gains on securities
transactions before risk provisions, improved from a loss of US$0.4 million in
the third quarter of 2002 to a gain of US$1.2 million in the current quarter,
mainly due to lower realized losses on securities transactions, which drop from
a US$1.7 million loss in the third quarter to a US$0.6 million loss in the
fourth quarter of 2002, and to exchange gains and recoveries of excess generic
provisions amounting to US$0.6 million from the closing of ASB's U.S. agency.
The loan portfolio, net of provisions, was US$160.5 million as of December
31, 2002, decreasing compared to US$176.1 million at December 2001, mainly due
to decreased lending to Peruvian companies and lower risk-participated loans.
The investment portfolio was US$313.8 million at December 2002, over
US$298.9 million last September 2002, but below US$330.6 million at the end of
2001. The increase in the current quarter is principally because of higher
valuations in the capital markets and to purchases of investment grade
securities.
Deposits amounted to US$544.3 million at December 31, 2002, increasing from
US$537.3 million at the end of the third quarter of 2001, but declines from
US$555.7 million at year-end 2001 mostly due to transfers into other investments
resulting from lower bank deposit interest rates.
Funds under management increased 28.9% during 2002, reaching to US$549.1
million at December 31, 2002, from US$426.0 million at the end of 2001, and 7.6%
compared to US$510.4 million at the end of the third quarter 2002. The increase
is principally due to the introduction of new structured products and funds
under management with higher yields than interest paid on bank deposits.
Additionally, during the last quarter of 2002 market values of these porfolios
increased significantly.
Net equity reached US$110.3 million at the end of December 2002, higher
than US$102.4 million at September 2002 mainly due to lower special equity
reserves for unrealized losses on investments which decreased from US$15.1
million at the end of September 2002, to US$7.4 million at the end of the
current quarter due to improved values in capital markets of the available for
sale proprietary portfolio. The loan portfolio had no past dues.
25
The ratio of operating expenses over average assets decrease to 1.2%,
annualized, in the fourth quarter of 2002 compared to the 1.4% ratio during the
same period in 2001. This ratio declines to 0.7% in the fourth quarter of 2002,
when funds under management are included within total assets, improving over
0.9% in the prior year quarter. The improvements a maily due to the closing of
ASB's U.S. agency.
26
IV. EL PACIFICO-PERUANO SUIZA AND SUBSIDIARIES ("PPS")
PPS obtained in the year ended December 31, 2002 a consolidated net income
of S/.35.5 million (US$10.1 million), which compares with net income in 2001 of
S/.214.1 million (US$60.9 million) which included a net gain of S/.190.7 million
(US$54.3 million) from the sale of Backus and Johnston equity shares. Recurring
net income in 2002 improved principally due to higher premiums.
Net income in the fourth quarter 2002 was S/.1.0 million (US$0.3 million),
compared to S/.211.3 million (US$60.1 million) in the year-ago quarter where the
above mentioned gain was registered. Net income in the current quarter was
affected by high claims and by inflation adjustment losses.
Total premiums in the fourth quarter of 2002, increased 2.8% to S/.197.3
million (US$56.1 million), compared to S/.191.9 million (US$54.6 million) in the
year-ago quarter, but decrease 14.9% compared to S/.231.9 million (US$66.0
million) in the preceding third quarter. Net premiums earned, net of reinsured
premiums and reserves, were S/.120.7 million (US$34.3 million) in fourth quarter
2002, 10.8% above the prior year quarter, mainly due to higher retained
premiums. Also, premiums grew because of increased prices due to higher
international reinsurance costs.
Additions to technical reserves for premiums grew by S/.28.6
million (US$8.1 million) in the fourth quarter of 2002, most of which,
S/.24.5 million (US$7.0 million) were established by Pacifico Vida for
its life annuities and life insurance lines.
Comparing total year results of 2002 and 2001, consolidated premiums
consisted of: general insurance lines that amounted to 62.3% of total premiums
and increased 22.7%, while Pacifico Salud's premiums were 10.2%, increasing
9.1%, and premiums by Pacifico Vida amounted to 27.5% and grew 7.5%.
Through December 31, 2002, growth of PacificoSAlud and the health and
medical assistance insurance line (21.8% of total premiums) was 6.8%; fire
insurance lines (22.7% of total premiums) increased 69.2%; while the automobile
insurance line (7.1% of total premiums) decreased 9.8%. Through December 2002,
pension fund benefits insurance (8.1% of total premiums) grew 7.3%, while group
life insurance and individual life insurance policies (10.8% of total premiums)
grew 14.1%, and life annuities (7.5% of total premiums) decreased 1.1% compared
to year 2001.
Net underwriting results was S/.13.8 million (US$3.9 million) in the fourth
quarter of 2002, compared to S/.18.8 million (US$5.3 million) in the prior year
quarter. The ratio of net underwriting results (net premiums less reserves and
claims as a percentage of total premiums) decreased to 7.0% in the fourth
quarter of 2002, compared to 9.8% in the prior year period, and to 9.3% in the
third quarter 2002 mainly because of higher claims.
Net claims incurred in the fourth quarter of 2002 were S/.88.4 million
(US$25.2 million), 14.9% over claims in the last quarter of 2001, but decrease
3.5% compared to the preceding quarter. The net loss ratio (net claims to net
premiums) increases to 73.2% in the current quarter from 70.6% in fourth quarter
2001, and from 71.3% in the preceding third quarter. The net loss ratio for
total 2002 was 73.0%, lower than 81.6% in 2001, but continues high in pension
fund insurance (116%), health (88%) and in Pacifico Salud (83%).
The combined ratio (the sum of net claims, general expenses and
commissions, as a percentage of net premiums) increased from 107.1% in the
fourth quarter of 2001 to 108.1% in the current quarter, due to higher claims,
principally in health insurance, Pacifico Salud and pension fund insurance.
Operating expenses over net premiums declined from 28.1% to 25.4% comparing
the fourth quarters of 2001 and 2002, respectively.
27
Investments in real estate and financial assets were S/.1,024 million
(US$291.5 million) at the end of December 2002, increasing 23.9% from the
year-ago balance.
As of December 31, 2002, total assets were S/.1,416 million (US$403.1
million) increasing 3.6% compared to the year-ago balance. At the end of the
current period net equity amounted to S/.334.5 million (US$95.2 million)
decreasing 30.1% from net equity at December 2001 mostly due to payment of cash
dividends.
The Peruvian insurance market through November 30, 2002, increased total
premiums 18.9% with respect to the same prior year period, reaching US$616.1
million, mainly due to higher reinsurance costs. For the first eleven months of
2002, PPS's market share in total premiums was 32.1% (32.5% in the year-ago
period), with the share in general risks lines being 34.0% (35.0% through
November 2001), and in life insurance and pension fund benefits lines of 29.9%
and 26.0% (29.9% and 25.9% as of November 2001), respectively.
28
CREDICORP LTD. AND SUBSIDIARIES
Table 1
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars)
As of
--------------------------------------------------------------
ASSETS Sep. 30, 2001 Dec. 31, 2001 Sep. 30, 2002 Dec. 31, 2002
- ---------------------------------------------------------------------------------------------------------------------
CASH AND DUE FROM BANKS
Cash and non interest bearing deposits in banks 244,009 277,841 251,670 314,404
Interest bearing deposits in banks 1,924,882 1,675,562 1,768,854 1,867,987
--------- --------- --------- ---------
2,168,891 1,953,403 2,020,524 2,182,391
--------- --------- --------- ---------
MARKETABLE SECURITIES, net 511,821 516,376 518,108 613,174
LOANS 4,313,517 4,064,479 3,869,572 4,817,662
- ----- --------- --------- --------- ---------
Current 3,929,175 3,713,644 3,559,161 4,412,345
Past Due 384,342 350,835 310,411 405,317
Less - Reserve for possible loan losses (355,793) (344,433) (310,787) (420,809)
LOANS NET 3,957,724 3,720,046 3,558,785 4,396,853
- ---------- --------- --------- --------- ---------
INVESTMENT SECURITIES AVAILABLE FOR SALE 615,003 584,293 618,286 634,151
REINSURANCE ASSETS 44,617 45,663 39,279 29,677
PREMIUMS AND OTHER POLICYHOLDER RECEIVABLES 47,156 54,587 63,020 61,856
PROPERTY, PLANT and EQUIPMENT, net 251,864 258,870 244,050 288,889
DUE FROM CUSTOMERS ON ACCEPTANCES 40,605 38,606 30,453 36,068
OTHER ASSETS 393,936 417,072 306,543 376,660
TOTAL ASSETS 8,031,617 7,588,916 7,399,048 8,619,719
- ---------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS AND OBLIGATIONS:
Non-interest bearing 632,154 766,607 685,739 822,883
Interest bearing 5,398,318 4,960,884 4,948,560 5,933,819
--------- --------- --------- ---------
6,030,472 5,727,491 5,634,299 6,756,702
--------- --------- --------- ---------
DUE TO BANKS AND CORRESPONDENTS 479,749 341,452 305,384 309,698
ACCEPTANCES OUTSTANDING 40,605 38,606 30,453 36,068
RESERVE FOR PROPERTY AND CASUALTY CLAIMS 185,649 193,452 212,514 224,754
RESERVE FOR UNEARNED PREMIUMS 39,185 44,707 51,189 48,703
REINSURANCE PAYABLE 22,793 23,801 30,564 23,253
OTHER LIABILITIES 327,376 310,383 271,845 332,000
MINORITY INTEREST 103,073 112,255 64,311 64,742
TOTAL LIABILITIES 7,228,902 6,792,147 6,600,559 7,795,920
NET SHAREHOLDERS' EQUITY 802,715 796,769 798,489 823,799
------------------------ ------- ------- ------- -------
TOTAL LIABILITIES and NET SHAREHOLDERS' EQUITY 8,031,617 7,588,916 7,399,048 8,619,719
CONTINGENT CREDITS 917,791 1,079,749 1,310,519 1,637,050
- ---------------------------------------------------------------------------------------------------------------------
29
CREDICORP LTD. AND SUBSIDIARIES
Table 2
CONSOLIDATED INCOME STATEMENTS
(In thousands of U.S. Dollars)
Three months ended Twelve months ended
------------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.01 31.12.02
- -------------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest on loans 123,786 98,991 101,314 544,255 420,341
Interest and dividends on investments: 380 304 490 2,387 2,293
Interest on deposits with banks 10,534 10,420 10,230 65,523 36,516
Interest on trading securities 20,361 9,915 10,753 82,607 54,197
------ ----- ------ ------ ------
Total Interest Income 155,061 119,630 122,787 694,772 513,347
------- ------- ------- ------- -------
INTEREST EXPENSE
Interest on deposits 41,163 28,090 27,866 220,024 117,258
Interest on borrowed funds 10,387 5,464 5,136 59,177 25,285
Other interest expense 9,011 8,585 10,585 39,341 35,527
----- ----- ------ ------ ------
Total Interest Expense 60,561 42,139 43,587 318,542 178,070
------ ------ ------ ------- -------
Net Interest Income 94,500 77,491 79,200 376,230 335,277
------------------- ------ ------ ------ ------- -------
Provision for possible loan losses, net 40,394 32,236 23,735 134,357 111,646
Net interest income after provision for
possible loan losses 54,106 45,255 55,465 241,873 223,631
OTHER INCOME
Fees and commissions from banking services 41,926 43,834 44,239 155,030 169,097
Net gains from sales of securities 32,928 (5,658) 5,447 31,737 (1,097)
Net gains on foreign exchange transactions 4,021 5,539 6,965 17,549 22,582
Net premiums earned 27,245 31,326 30,854 112,204 125,218
Other income 10,278 14,608 17,313 40,989 55,674
------ ------ ------ ------ ------
116,398 89,649 104,818 357,509 371,474
------- ------ ------- ------- -------
CLAIMS ON INSURANCE ACTIVITIES
Net claims incurred 4,594 4,834 5,030 26,349 23,701
Increase in future policy benefits for life and health 17,407 20,629 19,476 70,668 74,200
------ ------ ------ ------ ------
22,001 25,463 24,506 97,017 97,901
------ ------ ------ ------ ------
OTHER EXPENSES
Salaries and employee benefits 43,899 43,608 49,541 173,974 183,468
General, administrative, and other taxes 31,175 32,970 39,817 129,581 138,442
Depreciation and amortization 12,397 10,722 11,544 46,732 44,372
Other 15,434 7,581 12,645 57,594 43,142
------ ----- ------ ------ ------
102,905 94,881 113,547 407,881 409,424
------- ------ ------- ------- -------
Translation result 835 (900) 384 (2,575) (2,482)
Income before income tax, and minority interest 46,433 13,660 22,614 91,909 85,298
Income Tax (10,496) (8,809) (5,987) (21,557) (32,628)
Minority Interest (9,427) (1,771) (3,110) (15,839) (10,287)
NET INCOME 26,510 3,080 13,517 54,513 42,383
- -------------------------------------------------------------------------------------------------------------------------------
30
CREDICORP LTD. AND SUBSIDIARIES
Table 3
SELECTED FINANCIAL INDICATORS
Three months ended Twelve months ended
-----------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.01 31.12.02
- ------------------------------------------------------------------------------------------------------------------------------
Profitability
Net income per common share (US$ per share)(1) 0.332 0.039 0.169 0.681 0.532
Net interest margin on interest earning assets (2) 6.16% 5.37% 4.97% 6.12% 5.56%
Return on average total assets (2)(3) 1.36% 0.17% 0.68% 0.72% 0.52%
Return on average shareholders' equity (2)(3) 13.26% 1.54% 6.67% 6.90% 5.23%
No. of outstanding shares (millions)(4) 79.46 79.75 79.75 79.46 79.75
Quality of loan portfolio
Past due loans as a percentage of total loans 8.63% 8.02% 8.41% 8.63% 8.41%
Reserves for loan losses as a percentage of
total past due loans 98.18% 100.12% 103.82% 98.18% 103.82%
Reserves for loan losses as a percentage of
total loans 8.47% 8.03% 8.73% 8.47% 8.73%
Reserves for loan losses as a percentage of
substandard loans (C+D+E) 46.22% 45.38% 52.60% 46.22% 52.60%
Past due loans - reserves for loan losses as a
percentage of shareholders' equity 0.80% -0.05% -1.88% 0.80% -1.88%
Operating efficiency
Oper. expense as a percent. of total income (5) 49.39% 48.82% 55.57% 52.85% 51.95%
Oper. expense as a percent. of av. tot. assets(2)(3)(5) 4.85% 4.44% 5.11% 4.97% 4.53%
Capital adequacy
Total Regulatory Capital (US$Mn) 730.4 716.9 788.0 730.4 788.0
Tier I Capital (US$Mn) 605.9 608.8 608.8 605.9 608.8
Regulatory capital / risk-weighted assets (6) 12.35% 12.22% 12.30% 12.35% 12.30%
Average balances (US$Mn) (3)
Interest earning assets 6,135.7 5,771.7 6,369.8 6,148.1 6,025.6
Total Assets 7,810.3 7,345.2 8,009.4 7,608.0 8,104.3
Net equity 799.7 799.9 811.1 789.7 810.3
- ------------------------------------------------------------------------------------------------------------------------------
(1) Number of shares outstanding of 79.8 million in 3Q02 and 4Q02, and 79.5
million in 4Q01.
(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 and other income. Operating
expense is net of provisions for other assets received in lieu of loan
repayment and mandatory employee profit sharing expense.
(6) Risk-weighted assets include market risk assets.
31
Table 4
CONSOLIDATED BALANCE SHEETS
(Constant Nuevos Soles, as of December 31, 2002, and U.S. Dollars in thousands)
ASSETS 30.09.01 31.12.01 30.09.02 31.12.02 31.12.02
- ------------------------------------------------------------------------------------------------------------------------------
US$000(1)
CASH AND DUE FROM BANKS 6,789.138 6,056.192 6,737.961 7,296.161 $2,076.312
- ----------------------- ---------- ---------- ---------- ---------- ----------
Cash and Checks 781.880 861.973 871.653 1,081.814 $307.858
Deposits in Central Bank of Peru 4,339.335 3,838.365 4,851.451 4,767.030 $1,356.582
Deposits with local and foreign banks 1,667.923 1,355.854 1,014.857 1,447.317 $411.872
MARKETABLE SECURITIES, net 1,523.613 1,531.495 1,652.907 1,938.413 $551.626
LOANS 12,924.050 12,883.273 12,752.044 15,652.850 $4,454.425
Current 11,654.072 11,751.433 11,711.698 14,313.276 $4,073.215
Past Due 1,269.978 1,131.840 1,040.346 1,339.574 $381.211
Less - Reserve for possible loan losses (1,224.435) (1,190.052) (1,120.026) (1,456.805) ($414.572)
LOANS NET 11,699.615 11,693.221 11,632.018 14,196.045 $4,039.853
- ---------- ----------- ----------- ----------- ----------- ----------
INVESTMENT SECURITIES AVAILABLE FOR SALE 328.472 306.854 417.496 416.271 $118.461
PROPERTY, PLANT and EQUIPMENT, net 639.567 655.530 614.310 779.203 $221.742
OTHER ASSETS 963.236 940.195 696.907 890.614 $253.447
TOTAL ASSETS 21,943.641 21,183.487 21,751.599 25,516.707 $7,261.442
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS AND OBLIGATIONS: 18,385.034 17,863.064 18,370.835 21,801.940 $6,204.308
- ------------------------- ----------- ----------- ----------- ----------- ----------
Demand deposits 3,447.326 3,764.337 3,877.574 4,898.649 $1,394.038
Saving accounts 5,032.635 5,332.662 5,200.073 5,855.263 $1,666.267
Time deposits 9,905.073 8,766.065 9,293.188 11,048.028 $3,144.003
DUE TO BANKS AND CORRESPONDENTS 601.491 480.847 462.919 555.226 $158.004
OTHER LIABILITIES 1,127.325 978.421 965.561 1,164.888 $331.499
SHAREHOLDERS EQUITY: 1,829.791 1,861.155 1,952.284 1,994.653 $567.630
- -------------------- ---------- ---------- ---------- ---------- --------
Capital stock 1,030.424 1,020.803 1,094.762 1,094.677 $311.519
Legal reserve 662.882 656.862 647.588 647.538 $184.274
Retained earnings 136.485 183.490 209.934 252.438 $71.838
TOTAL LIABILITIES AND EQUITY 21,943.641 21,183.487 21,751.599 25,516.707 $7,261.442
Contingent Credits 3,090.155 3,586.218 4,501.584 5,465.242 $1,555.277
- ------------------------------------------------------------------------------------------------------------------------------
(1) Translated at S/.3.514 per US$1.00.
32
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 5
CONSOLIDATED INCOME STATEMENTS
(Constant Nuevos Soles, as of December 31, 2002 and U.S. Dollars in thousands)
Three months ended Twelve months ended
--------------------------------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.02 31.12.01 31.12.02 31.12.02
- --------------------------------------------------------------------------------------------------------------------------------
Interest income and expense US$000(1) US$000(1)
Interest income 452.494 383.104 408.542 $116.261 2,038.782 1,599.738 $455.247
Less - Interest expense 163.131 121.155 126.765 $36.074 874.446 501.581 $142.738
-------- -------- -------- ------- -------- -------- --------
Net interest income 289.363 261.949 281.777 $80.187 1,164.336 1,098.157 $312.509
Provisions for possible loan losses, net 113.747 110.083 69.020 $19.641 428.452 369.720 $105.213
Net interest income after provisions 175.616 151.866 212.757 $60.546 735.884 728.437 $207.296
- ------------------------------------ -------- -------- -------- ------- -------- -------- --------
Other Income
Fees and commissions from services 130.244 151.740 148.494 $42.258 500.880 569.510 $162.069
Net gains from sales of securities 21.171 1.074 4.748 $1.351 35.766 30.463 $8.669
Net gains on foreing exchg. transacts. 15.630 19.071 23.508 $6.690 61.499 76.526 $21.777
Other income 22.731 23.211 35.626 $10.138 77.693 101.848 $28.983
------- ------- ------- ------- ------- -------- -------
189.776 195.096 212.376 $60.437 675.838 778.347 $221.499
-------- -------- -------- ------- -------- -------- --------
Other Expenses
Salaries and employee benefits 119.531 128.577 147.526 $41.982 480.365 534.229 $152.029
General and administrative 88.905 103.087 111.076 $31.610 343.618 389.607 $110.873
Depreciation and amortization 29.268 29.137 28.999 $8.252 118.651 117.163 $33.342
Taxes other than income tax 9.282 8.646 9.305 $2.648 40.249 34.610 $9.849
Other 48.919 21.743 29.790 $8.478 162.907 125.901 $35.828
------- ------- ------- ------ -------- -------- -------
295.905 291.190 326.696 $92.970 1,145.790 1,201.510 $341.921
-------- -------- -------- ------- ---------- ---------- --------
Result from exposure to inflation 12.936 27.281 (34.645) ($9.859) (1.530) 16.765 $4.771
Income before income tax 82.423 83.053 63.792 $18.154 264.402 322.039 $91.645
Income Tax 35.416 21.850 21.283 $6.057 81.473 93.947 $26.735
NET INCOME 47.007 61.203 42.509 $12.097 182.929 228.092 $64.910
- --------------------------------------------------------------------------------------------------------------------------------
(1) Translated at S/.3.514 per US$1.00.
33
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 6
SELECTED FINANCIAL INDICATORS
Three months ended Twelve months ended
------------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.01 31.12.02
- --------------------------------------------------------------------------------------------------------------------------
Profitability
Net income per common share (S/. per share)(1) 0.044 0.057 0.039 0.170 0.212
Net interest margin on interest earning assets (2) 6.15% 5.57% 5.41% 6.20% 5.67%
Return on average total assets (2)(3) 0.87% 1.15% 0.72% 0.86% 0.98%
Return on average shareholders' equity (2)(3) 10.19% 12.74% 8.62% 10.19% 11.83%
Quality of loan portfolio
Past due loans as a percentage of total loans 8.79% 8.16% 8.56% 8.79% 8.56%
Reserves for loan losses as a percentage of
total past due loans 105.14% 107.66% 108.75% 105.14% 108.75%
Reserves for loan losses as a percentage of
total loans 9.24% 8.78% 9.31% 9.24% 9.31%
Reserves for loan losses as a percentage of
substandard loans (C+D+E) 47.46% 46.19% 52.86% 47.46% 52.86%
Past due loans - reserves for loan losses as a
percentage of shareholders' equity -3.13% -4.08% -5.88% -3.13% -5.88%
Operating efficiency (5)
Oper. expense as a percent. of total income (4) 55.82% 52.91% 58.10% 56.55% 55.92%
Oper. expense as a percent. of av. tot. assets(2)(3) 4.96% 4.53% 4.86% 4.92% 4.49%
Capital adequacy
Total Regulatory capital (constant millions S/.) 2,004.6 2,002.1 2,255.4 2,004.6 2,255.4
Tier I Capital (constant millions S/.) 1,677.7 1,742.4 1,742.2 1,677.7 1,742.2
Net equity as a percentage of period end total assets 8.79% 8.98% 7.82% 8.79% 7.82%
Regulatory capital / risk-weighted assets 12.15% 12.73% 12.54% 12.15% 12.54%
Average balances (constant millions S/.) (3)
Interest earning assets 18,831.0 18,805.2 20,848.5 18,240.3 20,471.6
Total Assets 21,563.6 21,365.8 23,634.2 21,152.7 23,350.1
Net equity 1,845.5 1,921.6 1,973.5 1,794.5 1,927.9
Additional data
No. of outstanding shares (millions) 1,026 1,076 1,076 1,026 1,076
No. of employees 7,747 7,977 8,356 7,747 8,356
Inflation rate ( Wholesale price index) -1.63% 1.70% -0.18% -2.41% 1.52%
Exchange rate (S/. per 1 U.S. Dollar) 3.44 3.64 3.51 3.44 3.51
- -------------------------------------------------------------------------------------------------------------------------
(1) Shares outstanding of 1,076 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 and other income.
(5) Operating expense does not include mandatory employee profit sharing
expense nor provisions for other assets received in lieu of loan repayment.
34
ATLANTIC SECURITY HOLDING CORPORATION
Table 7
SELECTED FINANCIAL DATA
(Thousands of U.S. Dollars, except net income per share, and percentages)
Three months ended Twelve months ended
---------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.01 31.12.02
- ---------------------------------------------------------------------------------------------------------------------
Results
Net Interest Income 4,800 4,254 3,936 19,135 21,749
Provisions for market risks 3,000 1,332 2,987 11,441 9,439
Other Income(1) 1,120 (357) 1,167 8,787 2,745
Operating Expense 2,370 2,489 1,965 10,835 9,287
Net Income 549 75 151 5,646 5,768
Net Income per share (US$) 0.01 0.00 0.00 0.14 0.14
Balance Sheets (end of period)
Total Assets 705,920 656,796 666,522 705,920 666,522
Loan portfolio, net 176,071 153,820 160,483 176,071 160,483
Marketable securities and investments 330,564 298,905 313,828 330,564 313,828
Total Deposits 555,669 537,333 544,346 555,669 544,346
Shareholders' equity 128,742 102,381 110,260 128,742 110,260
Funds under administration 425,980 510,357 549,051 425,980 549,051
Ratios (2)
Net interest margin / interest earning assets (3)(4)(5) 3.0% 3.0% 2.7% 2.7% 3.0%
Return on average stockholders' equity(4) 1.8% 0.3% 0.6% 4.3% 4.8%
Return on average total assets(4) 0.3% 0.0% 0.1% 0.8% 0.8%
Past due loans as a percentage of total loans 0.0% 0.0% 0.0% 0.0% 0.0%
Reserves for loan losses as a percentage
of total loans 0.4% 0.4% 0.8% 0.4% 0.8%
Operating expense / total income(6) 40.0% 63.9% 38.5% 38.8% 37.9%
Operating expense / average total assets(4) 1.4% 1.5% 1.2% 1.5% 1.4%
Operating expense / average total assets +
funds under management(4) 0.9% 0.9% 0.7% 1.0% 0.8%
- ---------------------------------------------------------------------------------------------------------------------
(1) Includes realized gains in securities.
(2) Averages are determined as the average of period-beginning and
period-ending balances.
(3) Averages determined from monthly balances.
(4) Annualized.
(5) Without considering dividend income and dividend earning assets. (6)
Without considering provisions for investments.
35
EL PACIFICO-PERUANO SUIZA AND SUBSIDIARIES
Table 8
SELECTED FINANCIAL DATA
(Constant Nuevos Soles as of December 31, 2002, and
U.S. Dollars in thousands, except net income per share)
As of and for the three month As of and for the twelve month
period ended period ended
--------------------------------------------------------------------------------------
31.12.01 30.09.02 31.12.02 31.12.02 31.12.01 31.12.02 31.12.02
- -------------------------------------------------------------------------------------------------------------------------
Results US$000(1) US$000(1)
- -------
Total gross Premiums 191,852 231,889 197,293 $56,145 736,367 859,061 $244,468
Net Premiums Earned 109,002 128,579 120,728 $34,356 428,903 483,023 $137,457
Change in Reserves 29,704 26,473 28,573 $8,131 119,091 118,069 $33,600
Net Underwriting Results 18,790 21,615 13,761 $3,916 36,540 72,256 $20,562
Net Financial Income 256,909 19,767 22,139 $6,300 308,374 87,089 $24,783
General Expenses 30,618 24,977 30,668 $8,727 100,678 109,426 $31,140
Net Income 211,254 12,289 1,011 $288 214,139 35,547 $10,116
Net Income per share (S/.)(2) 9.062 0.527 0.043 $0.012 9.185 1.525 $0.434
Balance Sheets (end of period)
Total Assets 1,365,361 1,460,133 1,416,778 ###### 1,365,361 1,416,778 $403,181
Investments in Secur. and Real estate 826,968 985,476 1,024,318 ###### 826,968 1,024,318 $291,496
Technical Reserves 705,351 861,186 894,068 ###### 705,351 894,068 $254,430
Net Equity 478,425 352,644 334,510 $95,194 478,425 334,510 $95,194
Ratios
Net underwriting results 9.8% 9.3% 7.0% 7.0% 5.0% 8.4% 8.4%
Loss ratio 48.4% 44.5% 47.3% 47.3% 60.5% 44.6% 44.6%
Return on avge. equity (3)(4) 471.4% 15.0% 1.2% 1.2% 55.7% 8.7% 8.7%
Return on total premiums 110.1% 5.3% 0.5% 0.5% 29.1% 4.1% 4.1%
Shareholders' Equity / Total Assets 35.0% 24.2% 23.4% 23.4% 35.0% 23.4% 23.4%
Increase in Risk Reserves 21.4% 17.1% 19.1% 19.1% 21.7% 19.6% 19.6%
Combined Ratio 107.1% 97.8% 108.1% 108.1% 113.0% 102.8% 102.8%
- ---------------- ------ ----- ------ ------ ------ ------ ------
- Net Claims / Net Premiums 70.6% 71.3% 73.2% 73.2% 81.6% 73.0% 73.0%
- Op. Exp.+Comiss./Net Premiums 36.5% 26.5% 34.9% 34.9% 31.4% 29.8% 29.8%
Operating expense/Net Premiums 28.1% 19.4% 25.4% 25.4% 23.5% 22.7% 22.7%
Oper. expense / Avge. assets (3)(4) 10.1% 7.3% 8.8% 8.8% 8.5% 7.8% 7.8%
- -------------------------------------------------------------------------------------------------------------------------
(1) Translated at S/.3.514 per US$1.00.
(2) Based on 23.3 million shares in all periods.
(3) Averages are determined as the average of period-beginning and
period-ending balances.
(4) Annualized.
36