SEC Filing | Credicorp

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Unassociated Document

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of November 2010

CREDICORP LTD.

(Exact name of registrant as specified in its charter)

Clarendon House

Church Street

Hamilton HM 11 Bermuda

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

	CREDICORP Ltd. Third Quarter 2010 Results Lima, Peru, November 10, 2010 - Credicorp (NYSE:BAP) announced today its unaudited results for the third quarter of 2010. These results are reported on a consolidated basis in accordance with IFRS in nominal U.S. Dollars.

	HIGHLIGHTS

	·	Credicorp reported solid 3Q10 earnings of US$ 156.2 million, which despite being down 3.5% QoQ, reflect a significant improvement in its core net income of around 5% QoQ when excluding the extraordinary non-recurrent income. This is also evidenced by an earnings growth of 28.4% YoY. Performance ratios reflected this good performance reaching 2.5% ROAA and 24.4 % ROAE.
	·	These good 3Q results confirm the recovered growth trend of 1H10 leading to a strong total net income attributed to Credicorp for the first 9 months of US$ 442 million, up 27.2% from 2009, and pushing Credicorp´s net earnings for the year 2010 towards the high end of expectations.
	·	The continuing recovery of economic activity in the Peruvian market is again reflected in Q-end loan balances, which grew 5.6% from last Q accumulating 25.6% loan growth for the year to date.
	·	NII grew 5% this Q keeping pace with loan growth and NIM remained flat at 5%, though some impact on NIMs from our A&L management strategy was evident at BCP.
	·	Non-financial income, excluding the extraordinary non-recurrent gains on the sale of securities of last and the current Qs, was up 7.7% following a strong increase in fee income of 4.9%, and 11.0% growth in gains from FX transactions.
	·	An improvement of our PDL ratio to 1.6% in 3Q10 was recorded as the absolute volumes of past due loans dropped and our loan portfolio expanded. Nevertheless, our conservative internal policy on coverage and provisions, as well as regulatory changes that required more provisions resulted in stronger provisions than originally projected reaching US$ 52 million, up 69.3% from last Q. Therefore, our coverage was up to 193.1% from 179.3% of last Q.
	·	The continuing good performance of the insurance business is reflected in the US$ 44.2 million income, almost flat from last Q´s US$ 45.5 million income from insurance premiums net of claims, and 22.8% stronger YoY. YTD performance shows also a substantial 31.1% higher premium income compared with the same period of 2009.
	·	After 2 consecutive QoQ drops in operating costs, these were 3.4% up this Q reflecting new recruiting for future growth and investments in training & advisory services as we develop business opportunities. Nevertheless, the strong income generation led to a slight further improvement in the efficiency ratio to 39.4% from 39.6%, continuing the good trend since last year.
	·	However, the stronger income could not fully offset the significantly higher provisions incurred this 3Q, and core operating income for Credicorp dropped 2.2% QoQ. Including the extraordinary non-recurrent gains from the sale of securities, total operating income was down 8.6% for the Q. YTD results however, reveals the real performance, with core operating income increasing 36.7% and total operating income, including non-recurrent income, increasing a solid 23.7% for the year.
	·	BCP’s 3Q operating results also reflect solid growth in average daily lending volumes of 5.5% and a minimal 0.9% increase in operating costs. Even though provisions for loan losses registered a significant increase, despite the improvement of portfolio quality indicators, operating result was 2.6% up QoQ, excluding non-recurrent gains in securities. The large difference in non-recurrent income QoQ resulted in total operating income dropping 6.3% QoQ, a drop that was compensated by translation gains given the careful A&L management that took advantage of the USD weakness, and lower tax provisions due to tax benefits generated by investments in CDs of BCR. Thus, net contribution to Credicorp was up 3.4% reaching US$ 135.2 million for 3Q10, which reflects a strong ROAE of 31.3% and ROAA of 2.5%.
	·	ASHC’s contribution to Credicorp this 3Q was down to US$ 10.6 million from US$ 13.1 million in 2Q basically because of increased provisions as it took a very conservative stance.
	·	The low casualty levels from which PPS´s results were benefitting, increased across the board, leading to a reduction in technical results. PV had the lion´s share of this effect, in addition to excellent sales in life policies which in the short run generate high reserves affecting negatively technical results. Thus, bottom line of the insurance business reflects this and its contribution to Credicorp dropped to a still very solid US$ 10.4 million for the 3Q from US$ 12.5 million in 2Q.
	·	Prima AFP maintained the excellent results from previous Qs and reported 4.1% higher fee income, 3.8% higher operating income but lower bottom line results due to higher income taxes, leading to a stable contribution to Credicorp of US$ 5.7 million
	·	Overall, Credicorp had a very good 3Q which contributed to excellent income generation in all businesses reaching growth rates largely beyond 20% for the first 9 months, plus a 24.4% ROAE, a 1.6% PDL ratio and an improved efficiency ratio of 39.4% for the period.

I. Credicorp Ltd.

Overview

Credicorp reported solid 3Q10 earnings of US$ 156.2 million, which despite being down 3.5% QoQ, reflect a significant improvement in its core bottom line results of around 5% QoQ when excluding extraordinary non-recurrent income. This good performance is also evidenced by an excellent 27.2% YoY earnings growth. Performance ratios reflect these good results reaching excellent levels: 2.5% ROAA and 24.4 % ROAE.

These good 3Q results confirm the recovered growth trend of the first half of the year leading to a strong total net income attributed to Credicorp for the first 9 months of US$ 442 million, up a very strong 27.2% from 2009, and setting the base for Credicorp´s net earnings for the year 2010 to reach a level closer to the high end of expectations.

The continuing and strong recovery of economic activity in the Peruvian market became even more evident in this second half of the year and is undoubtedly driving growth in the loan portfolio. Q-end loan balances grew 5.6% QoQ, revealing a 25.6% loan growth pace for the year. Once again, strong growth was reported both in the wholesale and in the retail segments, which expanded their average daily balances by 5.0% and 5.6% respectively QoQ. Overall average loan book growth was 5.5% within this Q, stronger than the average daily balances growth of 3.5% reported last Q. With respect to growth, star performers continued being the SME (PYME) sector and micro-lending in the Retail Banking segment, though the middle market segment of the wholesale business also performed strongly.

An improvement of our PDL ratio to 1.6% in 3Q10 was recorded as our loan portfolio grew at the above mentioned rates, and the absolute volumes of past due loans dropped. Nevertheless, our conservative internal policy on coverage and provisions, as well as regulatory changes that required more provisions resulted in stronger provisions than originally projected reaching US$ 52 million, up 69.3% from last Q. Therefore, our coverage was up to 193.1% from 179.3% of last Q

Interest income was strong, growing 8.9% QoQ following the solid expansion of our loan portfolio and also strong growth of other interest earning assets through a 9.1% expansion in deposits. Interest expense increased however at a stronger pace. Notwithstanding, NIMs at Credicorp remained flat at 4.85% despite some pressure on NIMs at BCP given the strong growth of the wholesale portfolio and high levels of liquidity invested at the Central Bank with small margins.

Non-financial income, excluding the extraordinary non-recurrent gains on the sale of securities in this and last Q, was up 7.7% following a strong increase in fee income of 4.9%, and 11.0% growth in gains from FX transactions.

The insurance business also performed well with income from net insurance premiums (net of claims) this 3Q remaining strong at US$ 44.2 million after claims, similar to last Q´s performance. Net income generated however did experience some contraction as we will explain further down.

After two consecutive QoQ drops in operating costs, these were 3.4% up this Q reflecting new recruiting for future growth and investments in training & advisory services as we develop business opportunities. Nevertheless, the strong income generation led to a slight further improvement in the efficiency ratio to 39.4% from 39.6%.

Despite all the good income generation reported, the significantly higher provisions incurred this 3Q could not be fully offset and core operating income for Credicorp dropped by 2.2% QoQ. Furthermore, including the extraordinary gains from the sale of securities which were stronger in 2Q than in 3Q, total operating income dropped 8.6% for the Q.

Credicorp Ltd.	Quarter									Change %						Year to date						Change %
US$ 000	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Net Interest income		271,438			258,434			214,547			5.0	%		26.5	%		775,457			653,955			18.6	%
Net provisions for loan losses		(52,303	)		(30,895	)		(38,216	)		69.3	%		36.9	%		(126,379	)		(119,348	)		5.9	%
Non financial income		193,987			196,554			162,596			-1.3	%		19.3	%		558,349			506,741			10.2	%
Insurance premiums and claims		44,220			45,517			36,018			-2.9	%		22.8	%		122,224			93,195			31.1	%
Operating expenses		(243,281	)		(235,321	)		(211,568	)		3.4	%		15.0	%		(716,300	)		(638,575	)		12.2	%
Operating Income		214,060			234,289			163,377			-8.6	%		31.0	%		613,350			495,968			23.7	%
Core operating income		204,423			208,940			163,377			-2.2	%		25.1	%		578,364			423,241			36.7	%
Non core operating income*		9,637			25,349			-			-62.0	%		-			34,986			72,727			-51.9	%
Translation results		14,467			4,675			12,046			209.4	%		20.1	%		31,202			11,296			176.2	%
Worker's profit sharing and income taxes		(62,941	)		(65,611	)		(45,285	)		-4.1	%		39.0	%		(173,454	)		(135,801	)		27.7	%
Net income		165,586			173,353			130,139			-4.5	%		27.2	%		471,098			371,463			26.8	%
Minority Interest		9,360			11,429			8,432			-18.1	%		11.0	%		29,078			23,976			21.3	%
Net income attributed to Credicorp		156,226			161,924			121,707			-3.5	%		28.4	%		442,020			347,487			27.2	%
Net income / share (US$)		1.96			2.03			1.53			-3.5	%		28.4	%		5.54			4.36			27.2	%
Total loans		13,409,258			12,697,597			10,675,462			5.6	%		25.6	%		13,409,258			10,675,462			25.6	%
Deposits and obligations		16,652,009			15,257,042			13,672,287			9.1	%		21.8	%		16,652,009			13,672,287			21.8	%
Net shareholders' equity		2,689,315			2,433,065			2,130,102			10.5	%		26.3	%		2,689,315			2,130,102			26.3	%
Net interest margin		4.85	%		4.99	%		4.72	%								5.05	%		4.78	%
Efficiency ratio		39.4	%		39.6	%		39.8	%								40.3	%		41.4	%
Return on average shareholders' equity		24.4	%		27.5	%		24.0	%								24.2	%		24.8	%
PDL / total loans		1.59	%		1.70	%		1.55	%								1.59	%		1.55	%
Coverage ratio of PDLs		193.1	%		179.3	%		191.7	%								193.1	%		191.7	%
Employees		19,012			19,174			19,269									19,012			19,269

* It refers to a net gain on sales of securities (non financial income)

Offsetting to some extent the drop in total operating income, and following strict A&L management guidelines, some advantage was taken from the dollar weakness and a translation gain was reported. Thus net income reached US$ 165.6 million, which resulted in net income attributable to Credicorp of US$ 156.2 million.

The excellent performance of Credicorp is significantly more evident looking at year to date numbers, with operating income up by 23.7% and core operating income up by an even stronger 36.7%, leading to total net income generated by Credicorp of US$ 471.1 million, of which US$ 442.0 million are attributable to Credicorp and represent an impressive income growth of 27.2% for the YTD. This performance reflects a 24.2% ROAE, 2.5% ROAA, 5.1% NIM, 40.3% efficiency ratio and 1.59% PDL ratio with 193.1% coverage, by all means, more than satisfying results and all at the high end of expected targets.

Credicorp – The Sum of Its Parts

The good 3Q10 results of Credicorp are this time somewhat hidden by different elements, but looking through the numbers and especially at year to date results, the excellence of its performance becomes evident.

Furthermore, as we expressed last Q, the recovery in economic activity has not only reactivated loan growth, but further increased the good levels of income at the asset management subsidiaries and spurred growth in insurance activity, leading to consistently strong numbers.

BCP’s 3Q operating results also reflect solid growth in average daily lending volumes of 5.5% and a minimal 0.9% increase in operating costs. Even though provisions for loan losses registered a significant increase, despite the improvement of portfolio quality indicators, operating result was 2.6% up QoQ, excluding non-recurrent gains in securities. The large difference in non-recurrent income QoQ resulted in total operating income dropping 6.3% QoQ, a drop that was compensated by translation gains given the careful A&L management that took advantage of the USD weakness, and lower tax provisions due to tax benefits generated by investments in CDs of BCR. Thus, net contribution to Credicorp was up 3.4% reaching US$ 135.2 million for 3Q10, which reflects a strong ROAE of 31.3% and ROAA of 2.5%.

Furthermore, income generation has gone up 20.7% YTD, certainly beating all expectations. YTD numbers reveal also that interest income is up by 16.4% while provisions rise only 5.9% for the year, certainly smoothing down the perception of strong rise in provisions of last Q. Non financial income is up by 10.8% given that non-recurrent gains on the sale of securities in 2009 reached a all time high, which in turn disguised an impressive growth in banking services commissions of 32.2%. The efforts on the expense side are also reflected in expense growth of only 11.6% for the year, an achievement in the midst of strong portfolio and business expansion. This excellent performance, added to a sound A&L management that generated some translation gains resulted in the impressive net earnings growth mentioned of 29.2% for the year reaching US$ 374.8 million. BCP’s ratios reflect these improvements with ROAE at 29.3%, ROAA at 2.3%.

Therefore, BCP´s contribution to Credicorp’s bottom line reached US$ 135.2 million this 3Q vs. US$ 130.7 million in 2Q, while on a cumulative basis, net income contribution totaled US$ 365.2 million for the YTD vs. US$ 284.0 million for the same period in 2009, an increase of 28.6%.

Earnings contribution	Quarter									Change %						Year to date					Change %
US$ 000	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09		Sep 10 / Sep 09
Banco de Crédito BCP(1)		135,216			130,761			98,826			3.4	%		36.8	%		365,231			283,983		28.6	%
BCB		3,442			3,318			7,086			3.7	%		-51.4	%		12,370			20,851		-40.7	%
Financiera Edyficar		5,316			4,980			-			6.8	%		-			17,113			-		-
Atlantic		10,603			13,076			8,444			-18.9	%		25.6	%		37,090			14,860		149.6	%
PPS		10,439			12,518			10,088			-16.6	%		3.5	%		31,449			25,003		25.8	%
Grupo Crédito (2)		6,069			6,119			6,878			-0.8	%		-11.8	%		20,136			21,008		-4.2	%
Prima		5,696			5,857			5,661			-2.7	%		0.6	%		17,499			16,574		5.6	%
Others		373			262			1,217			42.4	%		-69.4	%		2,637			4,434		-40.5	%
Credicorp and others (3)		(6,101	)		(550	)		(2,529	)		-1009.3	%		-141.2	%		(11,886	)		2,633		-551.4	%
Credicorp Ltd.		(5,844	)		(274	)		(2,994	)		-2031.3	%		-95.2	%		(11,342	)		1,205		-1041.2	%
Others		(257	)		(276	)		465			6.8	%		-155.3	%		(544	)		1,428		-138.1	%
Net income attributable to Credicorp		156,226			161,924			121,707			-3.5	%		28.4	%		442,020			347,487		27.2	%

(1) Includes Banco de Crédito de Bolivia and Financiera Edyficar.

(2) Includes Grupo Crédito, Servicorp and Prima AFP

(3) Includes taxes on BCP's and PPS's dividends, and other expenses at the holding company level.

BCP Bolivia reported this 3Q a modest increase in earnings contribution of 3.7% mainly driven by lower provisions as the Bolivian financial market remains stable, but certainly subdued compared to the previous year. Loan growth however was strong reaching 8.6% QoQ, though this did not translate into higher NII revealing further compression of margins, which is to a large extent the result of the prevailing economic, political and regulatory environment. Overall, profitability continues dropping; as also reflected by a further drop in ROAE to 18.3% from 20.0% the previous Q. For the YTD, BCP Bolivia reports a 40.7% drop in income contribution to US$ 12.4 million, whereby this will probably set the new level of income that can be achieved within the existent economic framework.

Edyficar, BCP’s micro-lending vehicle has in turn reported a very good business evolution with lending activity growing at a very strong pace of 10.1% this Q. Reported contribution to Credicorp shows a 6.8% increase QoQ, which reflects strong loan growth and the low level of provisions this year. Therefore, Edyficar continues being a strong performer and a fast growing business and has accumulated a contribution to Credicorp of US$ 17.1 million for the first 9 months reflecting a ROAE of 24.6%.

ASHC’s reported a slip in contribution this 3Q down from US$ 13.0 million to US$ 10.6 million as a result of conservative provisions made for some investments on its portfolio since income generation, both interest income and fee income, remained stable increasing slightly by 1.9% for the Q. For the YTD however, the substantial improvement in ASHC´s performance is evident with a total contribution to Credicorp more than doubling from US$ 14.9 million in 2009 to US$ 37.1 million in 2010 as a consequence of the recovery in the asset management business internationally and the substantial changes in the business structure and professionalization of services at Credicorp.

The low casualty levels, from which PPS´s results were benefitting, increased across the board leading to a reduction in technical results. PV had the lion´s share of this effect, in addition to excellent sales in life policies which in the short run generate high reserves affecting negatively technical results. Thus, bottom line of the insurance business reflects this and its contribution to Credicorp dropped to a still very solid US$ 10.4 million for the 3Q from US$ 12.5 million in 2Q. Nevertheless, also this business shows the significant improvement of its earnings generation capacity when looking at the accumulated earnings and contribution to Credicorp for the YTD, which reached US$ 31.5 million vs. US$ 25.0 million in 2009, which in turn was already a very good year. Furthermore, having announced the acquisition of ALICO’s shares in the insurance group, future contributions to Credicorp will include such additional share and reflect a more substantial role in Credicorp’s income generation.

Finally, Prima AFP maintained the excellent results from previous Qs and reported 4.1% higher fee income, 3.8% higher operating income but lower bottom line results due to higher income taxes, leading to a stable contribution to Credicorp of US$ 5.7 million for the Q, and a YTD contribution of US$ 17.5 million up 5.6% from US$ 16.6 million in 2009.

Credicorp Ltd.’s line includes the provisions for withholding taxes on dividends paid to Credicorp and eventually translation effects, though in 2Q it showed a strong reduction since such tax provisions were compensated by dividend & interest income from investments in some selected Peruvian stocks and bonds recorded during the period, which are today held at Credicorp Ltd. and previously booked at Grupo Crédito.

Though the 3Q results of all subsidiaries given the effects explained led to a drop in total net earnings of Credicorp for the Q of 3.5%, the good performance of all of Credicorp’s subsidiaries throughout the year led to a substantial 27.2% QoQ increase in net income attributable to Credicorp for this first 9 months of the year, a remarkable performance that puts Credicorp´s earnings at the high end of expectations.

II. Banco de Crédito – BCP - Consolidated

Summary 3Q10

During the third quarter of this year, BCP achieved its best quarterly result to date. This reflects the fact that the financial system continues to expand alongside solid growth in the Peruvian economy, which accumulated 8.4% growth from January to August this year.

BCP’s net income totaled US$ 138.6 million in 3Q10, which represented a 3.3% increase QoQ and 26.6% YoY. The year’s accumulated results showed that net income grew 29.2% with regard to the level reported for January-September 2009.

It is important to point out that operating income, excluding extraordinary income, also expanded significantly to total US$ 162.6 million, which was 2.6% higher than the US$ 158.5 million generated in 2Q10.

Banco de Credito and Subsidiaries	Quarter									Change %						Year to date						Change %
US$ 000	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Net financial income		242,274			228,652			197,262			6.0	%		22.8	%		690,101			592,883			16.4	%
Total provisions for loan loasses		(52,614	)		(31,183	)		(38,917	)		68.7	%		35.2	%		(127,242	)		(120,171	)		5.9	%
Non financial income		167,348			169,541			129,689			-1.3	%		29.0	%		474,730			428,524			10.8	%
Operating expenses		(184,751	)		(183,180	)		(161,093	)		0.9	%		14.7	%		(553,264	)		(495,774	)		11.6	%
Operating Income		172,257			183,830			126,941			-6.3	%		35.7	%		484,325			405,462			19.5	%
Core operating income		162,620			158,481			126,941			2.6	%		28.1	%		449,339			332,735			35.0	%
Non core operating income*		9,637			25,349			-			-62.0	%		-			34,986			72,727			-51.9	%
Translation results		12,896			4,972			10,204			159.4	%		26.4	%		29,548			(4,955	)		693.3	%
Worker's profit sharing and income taxes		(46,382	)		(54,454	)		(35,400	)		-14.8	%		31.0	%		(138,582	)		(14,422	)		860.9	%
Net income		138,620			134,221			101,456			3.3	%		36.6	%		374,750			289,980			29.2	%
Net income / share (US$)		0.062			0.060			0.046			3.3	%		36.7	%
Total loans		13,326,601			12,611,066			10,572,063			5.7	%		26.1	%
Deposits and obligations		15,642,366			14,209,963			13,946,714			10.1	%		12.2	%
Net shareholders´ equity		1,864,471			1,679,754			1,556,224			11.0	%		19.8	%
Net financial margin		4.81	%		4.91	%		4.87	%
Efficiency ratio		46.3	%		48.0	%		48.8	%
Return on average equity		31.3	%		33.0	%		27.1	%
PDL / Total loans		1.59	%		1.71	%		1.56	%
Coverage ratio of PDLs		193.3	%		179.5	%		191.8	%
BIS ratio		13.9	%		13.6	%		14.5	%
Branches		324			325			330
Agentes BCP		3,354			3,086			2,435
ATMs		1,109			1,062			951
Employees		15,650			15,775			15,936

* It refers to a net gain on sales of securities (non financial income)

Excellent quarterly performance in 3Q10 as compared to 2Q10 was primarily due to:

i) 6.0% QoQ growth in net interest income (NII) due to higher interest income related to loan growth;

ii) Higher translation results as a result of appropriate asset & liability management; and

iii) Lower tax levels, which are primarily explained by the tax shelter obtained from investments in BCR CDs.

The aforementioned helped offset the 68.7% QoQ increase in provisions for loans and lower non-recurrent financial income. The latter was explained by a drop in earnings from sales of securities, which was significant in the 2nd and less is volume in this 3rd quarter following the Government’s bond repurchase.

A comparison with 3Q09’s results shows growth of 36.6% in net income and 35.7% in operating income. In terms of the latter, the 22.8% increase in NII was particularly noteworthy along with 29.0% growth in non-financial income (primarily due to the 29.5% increase in fees for banking services) and higher translation results.

Assets reported 12.5% growth QoQ due to an increase in net loans (+5.7% QoQ) and higher securities available for sale (+43.9% QoQ). The latter was associated with a successful treasury management strategy to invest in relatively low cost funding options such as Peruvian government instruments, which are attractive due to the rates offered and the tax shelter they generate.

Good results in the third quarter also include a declining past due ratio, which went from 1.71% at the end of 2Q10 to 1.59% at the end of 3Q10. As we will explain in greater detail later on, this contraction was due to loan growth and a reduction in the past due portfolio.

BCP achieved improvement in operating efficiency for the third consecutive quarter this year. This was evident in an improvement in the efficiency ratio, which dropped from 48.0% in 2Q10 to 46.3% in 3Q10. This quarter’s level is even lower than the 48.8% registered in 3Q09.

Finally, ROAE and ROAA reached very satisfactory levels of 31.3% and 2.5%, respectively.

Core Earnings

Core earnings	Quarter						Change %						Year to date				Change %
US$ 000	3Q10		2Q10		3Q09		QoQ			YoY			Sep 10		Sep 09		Sep 10 / Sep 09
Net interest and dividend income		242,274		228,652		197,262		6.0	%		22.8	%		690,101		592,883		16.4	%
Fee income, net		120,839		113,577		93,348		6.4	%		29.5	%		341,639		258,521		32.2	%
Net gain on foreign exchange transactions		26,354		23,595		25,559		11.7	%		3.1	%		75,452		65,587		15.0	%
Core earnings		389,467		365,824		316,169		6.5	%		23.2	%		1,107,192		916,991		20.7	%

In 3Q10, BCP’s core earnings totaled US$ 389.5 million, which represented a 6.5% increase with regard to 2Q10’s figure and toped 3Q09’s level by 23.2%. Favorable performance this quarter was due primarily to:

i) The 6.0% increase in NII, which was primarily attributable to higher income from interest on loans;

ii) Growth of 6.4% in fee income, which stemmed primarily from higher income from savings accounts, credit cards and contingencies (foreign trade and guarantees); and

iii) Higher earnings on FX transactions (+11.7%) due to an increase in the volume of transactions in a scenario of 1.4% appreciation in the Nuevo Sol.

Accumulated results evolved very favorably, which is reflected in an increase of 23.2% with regard to the income obtained in the first three quarters of 2009. This is attributable to growth in all areas: 22.8% in net interest income, 29.5% of fee income and 3.1% of net earnings for FX transactions.

II.1 Interest Earning Assets

Interest earning assets reported a significant 14.8% increase QoQ due to growth in available for sale securities (+43.9%), primarily BCR CDs, which are attractive investment alternatives; a 5.8% QoQ increase in current loans and a 16.1% increase in available funds attributable to higher legal reserves.

Interest earning assets	Quarter						Change %
US$ 000	3Q10		2Q10		3Q09		QoQ			YoY
BCRP and other banks		3,012,573		2,594,416		2,749,996		16.1	%		9.5	%
Interbank funds		-		-		68,132		0.0	%		-100.0	%
Trading securities		73,986		60,037		89,718		23.2	%		-17.5	%
Securities available for sale		5,336,436		3,707,331		2,793,015		43.9	%		91.1	%
Current loans		13,114,103		12,395,974		10,406,954		5.8	%		26.0	%
Total interest earning assets		21,537,098		18,757,758		16,107,815		14.8	%		33.7	%

The evolution of interest earning assets was closely tied to excellent performance this quarter given that despite an increase in legal reserves, treasury management wisely sought to capture relatively low-cost funds to take advantage of good investment opportunities such as BCR CDs, which offer higher rates and provide a lower effective tax rate. Economic expansion was also reflected in the dynamism of loans, which increased 5.8% QoQ due to growth in the Wholesale and Retail portfolios.

Loan Portfolio

At the end of 3Q10, current loans totaled US$ 13,114 million, which represents a 5.8% increase QoQ and 26.0% YoY. This is a clear indicator that the Peruvian economy is very dynamic right now. If we look at average daily balances, it is evident that the favorable impact is due to the results of both Wholesale Banking and Retail Banking, which reported significant QoQ increases of 5.0% and 5.6%, respectively.

The following graph shows the evolution of daily average balances and end-of-period balances during the third quarter of 2010 where two aspects stand out: (i) the upward trend of loan growth throughout the period, and (ii) the portfolio reported QoQ growth of 5.5% in average daily balances, which is higher than the 3.5% posted in 3Q10. This upward trend is visible at a global level and within each of the banking segments, which indicates that we are experiencing a period of growth in the banking system and throughout all sectors of the economy.

Further analysis of average daily balances indicates that overall expansion was 5.5% QoQ and 22.7% YoY. This expansion was due to total growth of both banking units and within them of all segments. First, Wholesale Banking achieved 5.0% growth QoQ, reaching more than US$ 7,000 million in average daily loan balances mainly due to important Middle-Market Banking’s short and long term transactions. Retail Banking increased 5.6% QoQ due to market dynamism and loans in SME and Mortgage Loans segments performed particularly well, growing 8.2% and 5.1% QoQ, respectively. It is also important to point out Edyficar’s growth of more than US$ 21 million, which represented 7.9% growth QoQ, topping last quarter’s figure of 5.5%.

			TOTAL LOANS (1)
	(US$ million)
		3Q10		2Q10	3Q09	QoQ			YoY
Wholesale Banking		7,050.5		6,712.2	5,816.5		5.0	%		21.2	%
- Corporate		4,542.3		4,417.4	3,939.8		2.8	%		15.3	%
- Middle Market		2,508.2		2,294.8	1,876.6		9.3	%		33.7	%
Retail Banking		4,796.9		4,541.0	4,058.7		5.6	%		18.2	%
- SME + Business		1,624.6		1,501.9	1,322.9		8.2	%		22.8	%
- Mortgages		1,746.9		1,661.7	1,470.0		5.1	%		18.8	%
- Consumer		892.8		851.8	801.0		4.8	%		11.5	%
- Credit Cards		532.5		525.6	464.7		1.3	%		14.6	%
Edyficar		299.7		277.8	-		7.9	%		-
Others (2)		739.4		688.6	626.6		7.4	%		18.0	%

Consolidated total loans		12,886.5		12,219.5	10,501.7		5.5	%		22.7	%

(1) Average daily balance

(2) Includes Work Out Unit, other banking and BCPBolivia.

If we analyze loan evolution by currency type, we see that both portfolios reported growth of 4.6% and 5.7% in the LC and FC portfolios, respectively.

Average Daily Balances

	Domestic Currency Loans (1)												Foreign Currency Loans (1)
	(Nuevos Soles million)												(US$ million)
	3Q10		2Q10		3Q09		QoQ			YoY			3Q10		2Q10		3Q09		QoQ			YoY
Wholesale Banking		5,052.1		4,927.7		4,624.1		2.5	%		9.3	%		5,262.1		4,976.8		4,242.9		5.7	%		24.0	%
- Corporate		3,475.6		3,346.9		3,516.5		3.8	%		-1.2	%		3,312.0		3,236.1		2,743.1		2.3	%		20.7	%
- Middle Market		1,576.6		1,580.8		1,107.5		-0.3	%		42.3	%		1,950.1		1,740.6		1,499.7		12.0	%		30.0	%
Retail Banking		8,258.6		7,821.0		6,686.1		5.6	%		23.5	%		1,873.5		1,786.3		1,782.5		4.9	%		5.1	%
- SME + Business		2,876.7		2,678.8		2,269.4		7.4	%		26.8	%		606.3		558.3		550.6		8.6	%		10.1	%
- Mortgages		2,240.8		2,111.3		1,656.9		6.1	%		35.2	%		953.7		918.1		905.9		3.9	%		5.3	%
- Consumer		1,830.5		1,729.6		1,586.7		5.8	%		15.4	%		244.9		242.6		260.6		0.9	%		-6.0	%
- Credit Cards		1,310.6		1,301.2		1,173.0		0.7	%		11.7	%		68.6		67.3		65.5		2.0	%		4.9	%
Edyficar		810.8		751.1		-		8.0	%		-			12.7		13.3		-		-4.0	%		-
Others (2)		182.6		174.9		108.7		4.4	%		68.0	%		674.7		627.0		589.5		7.6	%		14.5	%

Consolidated total loans		14,304.1		13,674.7		11,418.9		4.6	%		25.3	%		7,823.1		7,403.3		6,614.9		5.7	%		18.3	%
(1) Average daily balance
(2) Includes Work Out Unit, other banking and BCP Bolivia.

It is evident that a significant portion of portfolio growth comes from expansion in the FC portfolio that is mainly attributable to an increase in Wholesale Banking loans, which in turn was driven by portfolio growth experimented in Middle-Market Banking. This segment captured important short-term transactions during the fishing season and to a lesser extent during the coffee campaign and obtained long-term loans thanks to real estate investment projects, which continue to grow.

Growth in the FC portfolio is associated with a weak US dollar and the lower rates for the foreign currency portfolio. In this scenario, the wholesale sector is better prepared to manage FC exposure thanks to the natural cover provided by the nature of its business (in terms of assets and income in FC) and the fact that their technical expertise allows them to access to adequate market coverage.

Growth in the local currency portfolio is primarily attributable to Retail Banking’s expansion, particularly in the SME-Business and Mortgage segments, which grew 7.4% and 6.1% QoQ, respectively, due to more extensive financial inclusion and current economic development. As such, it is evident that retail clients are aware of the fact that it is best to avoid the exchange risk that is implicit in borrowing in a currency different from that of their income base. This growth was strengthened by the Wholesale Portfolio, which experienced a reactivation of LC loans and a corresponding increase of 2.5% QoQ thanks to mid-term transactions. This evolution is noteworthy because of the growth it implies and the fact that it offset last quarter’s negative result of -6.1%. In addition to the favorable results of both banking businesses, Edyficar reported significant growth of 8% QoQ in comparison to the QoQ 5.8% increase achieved in 2Q10.

Market Share

At the end of September, BCP consolidated maintained its market leadership with a 30.6% share, which is 10 percentage points above the figure reported for its closest competitor. It is important to emphasize that we currently hold 34.3% of the market for mortgage loans.

As of the end of August, the market shares of Corporate Banking and Middle-Market Banking proved that BCP is solidly positioned, reaching 44% and 32.9% respectively. These figures mirror those reported at the end of June 2010. Within Retail Banking, per product shares, which include the mortgage, consumer and credit card lines, showed little variation QoQ. During the last quarter, a number of changes were made in the classification of PYME and Business products. As such, we currently lack up-dated data to conduct a comparison with the previous classification system.

Dollarization

The foreign currency portfolio accounted for 60.7% of the total portfolio at the end of the third quarter. This represents a slight decline that was due to growth in the LC portfolio of Retail Banking and Wholesale Banking, the latter of which disbursed significant mid-term loans in LC during the third quarter.

II.2 Deposits and Mutual Funds

At the end of 3Q10, deposits reported 10.1% growth QoQ that was driven primarily by an increase in time deposits (+24.2%) and demand deposits (+29.8%) and to a lesser degree by savings accounts (+6.8%). Mutual funds reported a slight increase of 2.1% QoQ.

Deposits and obligations	Quarter						Change %
US$ 000	3Q10		2Q10		3Q09		QoQ			YoY
Non-interest bearing deposits		3,918,653		4,027,803		3,415,360		-2.7	%		14.7	%
Demand deposits		1,338,403		1,031,248		883,553		29.8	%		51.5	%
Saving deposits		3,953,997		3,702,869		3,387,339		6.8	%		16.7	%
Time deposits		5,267,355		4,242,721		5,179,047		24.2	%		1.7	%
Severance indemnity deposits (CTS)		1,127,933		1,176,925		1,012,534		-4.2	%		11.4	%
Interest payable		36,026		28,397		68,881		26.9	%		-47.7	%
Total customer deposits		15,642,367		14,209,963		13,946,714		10.1	%		12.2	%
Mutual funds in Perú		2,164,067		2,117,306		1,779,085		2.2	%		21.6	%
Mutual funds in Bolivia		123,312		123,084		156,339		0.2	%		-21.1	%
Total customer funds		17,929,746		16,450,353		15,882,138		9.0	%		12.9	%

The increase reported in deposits was due mainly to growth in time deposits given that Wholesale Banking’s clients maintained higher balances this quarter. The increase in time deposits is in line with the CDs investment strategy. Demand deposits and savings accounts reported growth of 29.8% QoQ and 6.8% QoQ due to an increase in deposits in Wholesale Banking and Retail Banking respectively.

This evolution in funding sources is proof of BCP’s ability to capture the funds that will allow it to back future economic growth in the country. The aforementioned implied an increase in the cost of funding, which went from 1.82% in 2Q10 to 2.111% in 3Q10. This increase is mainly explained by two factors: i) the higher reference rate in Nuevos Soles (from 1.75% in June to 3% in September); and ii) the effect of reserve requirement measures that generated the reduction of US dollar liquidity, which increased the cost of fund for such currency.

BCP’s mutual funds grew 2.1% QoQ due to favorable market value and the campaigns that this segment conducted in 3Q10.

Market Share in Deposits

At the end of September, BCP led the deposits market with a 34.1% market share. This figure was higher than that obtained in 2Q10 (33.1%) and 14 percentage points above its closest competitor. If we analyze market share by deposit and currency type, BCP maintains a solid lead and has performed particularly well in terms of CTS deposits in FC and savings in LC where its market share tops 40%.

Market share by type of deposit and currency
	Demand deposits			Saving deposits			Time deposits			Severance indemnity
LC		38.1	%		36.6	%		29.0	%		37.9	%
FC		43.4	%		41.0	%		28.5	%		55.6	%

LC: Local Currency

FC: Foreign Currency

It is important to mention that the increase in market participation in time deposits in LC, which rose from 21.1% in 2Q10 to 29% in 3Q10 due to successful efforts to capture excess liquidity, particularly from institutional clients.

Dollarization

At the end of 3Q10, de-dollarization was evident in deposits (55.7% in 2Q10 and 51.7% in 3Q10) due to the significant 20.1% increase QoQ in LC deposits. This stemmed primarily from higher time deposits by institutional clients in Wholesale Banking. This evolution of deposits was attributable to increased confidence in the local currency, which reported a 1.4% appreciation against the US dollar during the third quarter of the year.

II.3 Net Interest Income

NII grew 6.0% QoQ due primarily to a 5.3% increase in interest income, which was attributable to significant loan growth this quarter and helped offset higher interest expenses (+25.1%). In this scenario, NIM performed well at 4.8%.

Net interest income	Quarter									Change %						Year to date						Change %
US$ 000	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Interest income		345,937			311,548			292,292			11.0	%		18.4	%		963,407			909,494			5.9	%
Interest on loans		309,818			294,303			260,705			5.3	%		18.8	%		884,286			783,044			12.9	%
Interest and dividends on investments		33			42			384			-21.4	%		-91	%		3,532			3,088			14.4	%
Interest on deposits with banks		1,643			1,627			2,351			1.0	%		-30.1	%		5,058			16,163			-68.7	%
Interest on trading securities		21,035			19,511			27,730			7.8	%		-24.1	%		60,384			83,000			-27.2	%
Other interest income		13,408			(3,935	)		1,122			440.7	%		1095.0	%		10,147			24,199			-58.1	%
Interest expense		103,663			82,896			95,030			25.1	%		9.1	%		273,306			316,611			-13.7	%
Interest on deposits		35,477			22,558			61,505			57.3	%		-42.3	%		79,590			220,103			-63.8	%
Interest on borrowed funds		41,879			29,272			4,746			43.1	%		782.4	%		99,941			21,244			370.4	%
Interest on bonds and subordinated note		23,783			23,063			16,501			3.1	%		44.1	%		72,474			47,013			54.2	%
Other interest expense		2,524			8,003			12,278			-68.5	%		-79.4	%		21,301			28,251			-24.6	%
Net interest income		242,274			228,652			197,262			6.0	%		22.8	%		690,101			592,883			16.4	%
Average interest earning assets		20,147,428			18,643,574			16,203,524			8.1	%		24.3	%		18,942,898			16,497,211			14.8	%
Net interest margin*		4.81	%		4.91	%		4.87	%								4.86	%		4.79	%
*Annualized

NII’s quarterly evolution shows 6.0% growth, which was attributable to:

i)The 5.3% increase in interest on loans due to significant loan growth (+5.7% in the quarter’s gross closing balances and +5.5% in average daily balances) due to higher growth in the Wholesale Banking and Retail Banking portfolios; and

ii) The increase in other interest income from earnings on derivatives.

The aforementioned helped offset higher interest expenses associated with the increase of interest on deposits and the interest on borrowed funds. The former was attributable to 10.1% growth in volume of deposits and the higher interest rates for US-dollar denominated deposits due to shortage of US dollar as a result of aggressive BCR’s changes in reserve requirements. On the other hand, the higher interests on borrowed funds are related to some accounting reclassifications (mainly expenses for derivatives linked to borrowed funds that were previously reported within other expenses or as negative other income) and to a lesser extend higher average interest rate for due to banks, which is related to the shortage aforementioned.

It is also necessary to point out that the evolution of NII was highly satisfactory given that this item does not include the tax benefit generated by investments in BCR CDs (which are reported in the provisions account for income taxes). Margins for Wholesale Banking continued to drop; nevertheless, growth in volumes, particularly in Middle-market Banking, offset the aforementioned effect. There is no doubt, significant growth in the Retail Banking and Edyficar portfolios helped mitigate this effect.

The aforementioned explains both the slight decline in NIM, which went from 4.9% to 4.8%, and the drop in NIM on loans, which was situated at 7.7% at the end of 3Q10 and was below the 8.0% posted last quarter.

Loan / Deposit Ratio

Another aspect that needs to be considered in NIM evolution is our conservative asset and liability matching policy in currency and tenor, which implies an “opportunity cost.” In this sense, a significant increase in local currency (LC) deposits was evident while the increase in foreign currency (FC) deposits was minimal, which is reflected in the loan to deposit ratio that is currently 68.9% in LC and 100.5% in FC. In this scenario, FC funds are needed to finance portfolio growth while maintaining adequate matching, which in turn generates a need for issuances and results in higher payments of interest on loans (due to banks) that imply higher funding costs than deposits. In this context, there is an excess of LC deposits, which is invested in Central Bank´s instruments. This creates an additional downward pressure on NIM given that the interest income generated by this investment is low and the tax benefit that increases it´s profitability and makes it a very attractive investment is not captured by the NIM.

II.4 Past Due Portfolio and Provisions for Loan Losses

The past due ratio fell significantly, going from 1.71% in 2Q10 to 1.59% in 3Q10. The coverage ratio for the past due loan portfolio rose from 179.5% to 193.3% due to higher net provisions.

Provision for loan losses	Quarter									Change %
US$ 000	3Q10			2Q10			3Q09			QoQ			YoY
Provisions		(59,018	)		(43,592	)		(44,080	)		35.4	%		33.9	%
Loan loss recoveries		6,404			12,408			5,163			-48.4	%		24.0	%
Net provisions, for loan losses		(52,614	)		(31,183	)		(38,917	)		68.7	%		35.2	%
Total loans		13,326,601			12,611,066			10,572,063			5.7	%		26.1	%
Reserve for loan losses (RLL)		410,814			386,148			316,718			6.4	%		29.7	%
Charge-Off amount		35,801			35,296			20,709			1.4	%		72.9	%
Past due loans (PDL)		212,498			215,092			165,109			-1.2	%		28.7	%
PDL/Total loans		1.59	%		1.71	%		1.56	%
Coverage		193.3	%		179.5	%		191.8	%

The increase in gross provisions in 3Q10 (+35.4% QoQ) was partially attributable to growth in total loans (+5.7% QoQ) but mainly due to regulatory changes and the internal policy relative to:

(i)

new loan segmentation, which implied, in the case of some products, higher loan provisions (such as Business segment);

(ii)

the re-activation of pro-cyclical provisions required by the Peruvian supervisor as of 3Q10 in a context of economic growth; it is important to note, however, that the impact of this measure was much lower because the provisions made before the international crisis were not used; and

(iii)

a conscious decision to increase provisions to expand the coverage level.

Recoveries for charge offs fell this quarter (-48.4% QoQ), which heightened the increase in net provisions (68.7% QoQ). These recoveries took place primarily in BCP Peru (associated mainly with Work-out Unit).

With regards to the past due ratio- which measures loan portfolio quality- it improved substantially QoQ, going from 1.71% at the end of 2Q10 to 1.59% at the end of 3Q10. Moreover, when we analyze PDL ratio for loans with more than 90 days overdue, we note a reduction from 1.19% at the end of 2Q10 to 0.97% at the end of 3Q10. The aforementioned evolutions were the result of 5.7% growth QoQ in gross loans as well as a drop of 1.2% QoQ in absolute terms in the past due portfolio. The curve in the following chart shows the evolution of PDLs and clearly reflects the effect of the economic slowdown in 2009 which had a delayed impact on PDLs and its recovery.

PDL	3Q10		2Q10
PDL (%)	1.59	%	1.71	%
PDL over 90 days (%)	0.97	%	1.19	%

II.5 Non Financial Income

The 6.4% growth observed in fees for banking services and the 11.7% increase in earnings on FX transactions significantly offset lower net earnings on sales of securities. Thus, excluding extraordinary gains on sales of securities, non financial income would increase 9.4% QoQ.

Non financial income	Quarter						Change %						Year to date				Change %
US$ 000	3Q10		2Q10		3Q09		QoQ			YoY			Sep 10		Sep 09		Sep 10 / Sep 09
Fee income		120,839		113,577		93,348		6.4	%		29.5	%		341,639		258,521		32.2	%
Net gain on foreign exchange transactions		26,354		23,595		25,559		11.7	%		3.1	%		75,452		65,587		15.0	%
Net gain on sales of securities		18,987		29,727		9,890		-36.1	%		92.0	%		48,875		92,164		-47.0	%
Other income		1,168		2,642		892		-55.8	%		30.9	%		8,764		12,251		-28.5	%
Total non financial income		167,348		169,541		129,689		-1.3	%		29.0	%		474,730		428,523		10.8	%

Fees for banking services grew 6.4% QoQ due to increases across segments. It is important to emphasize that the evolution of fees for Other Accounts (+9.1% QoQ) was mainly attributable to higher fees relative to Savings Accounts and Debit Cards. The Others category (+4.4% QoQ) also reported considerable growth, primarily in terms of higher fees for Foreign Trade and those derived from Contingencies (guarantees).

The aforementioned, coupled with higher net earnings on FX operations, which rose 11.7% QoQ due to an increase in the volume of operations in a context in which the Nuevo Sol appreciated (+1.4%), mitigated the effect caused by the decline in net earnings on sales of securities.

It is important to highlight that non financial income would increase 9.4% QoQ when excluding extraordinary gains on sales of securities reported in 3Q and 2Q obtained from the Peruvian Government’s repurchase of bonds denominated in Euros.

Banking Fee Income	Quarter						Change %
US$ 000	3Q10		2Q10		3Q09		3Q10 / 2Q10			3Q10 / 3Q09
Miscellaneous Accounts*		30,863		28,276		23,792		9.1	%		29.7	%
Contingents		7,113		6,214		5,238		14.5	%		35.8	%
Payments and Collections		15,376		14,651		12,881		4.9	%		19.4	%
Drafts and Transfers		7,321		6,837		6,265		7.1	%		16.9	%
Credit Cards		15,284		14,628		12,729		4.5	%		20.1	%
Others		44,882		42,970		32,444		4.4	%		38.3	%
Total Fee Income		120,839		113,577		93,348		6.4	%		29.5	%

* Saving Accounts, Current Accounts and Debit Card.

The positive evolution of fees is also related to the behavior of banking transactions, which grew 5.4% QoQ due, in large part, to on-line transactions. This growth is mainly attributable to an increase in Internet transactions (+8.5% QoQ), which represents 35% of the total growth of transactions this quarter. Other items that contributed to growth in transactions were (i) an increase in the use of ATMs (+7.4% QoQ) and (ii) higher transactions in Telecrédito (+8.9% QoQ). The aforementioned is a clear sign that customers are increasing their use of channels that are more cost efficient for BCP.

N° de Transactions per channel	Quarter						Change %
	Average 3Q10		Average 2Q10		Average 3Q09			3Q10 / 2Q10		3Q10 / 3Q09
Teller		10,105,034		10,115,285		10,596,719		-0.1	%	-4.6	%
ATMs Via BCP		8,957,045		8,339,318		7,239,234		7.4	%	23.7	%
Balance Inquiries		2,931,377		2,888,532		2,554,782		1.5	%	14.7	%
Telephone Banking		1,643,660		1,548,182		1,470,293		6.2	%	11.8	%
Internet Banking Via BCP		11,458,877		10,563,002		9,770,583		8.5	%	17.3	%
Agente BCP		5,383,892		5,118,650		4,006,165		5.2	%	34.4	%
Telecrédito		4,725,407		4,339,153		3,973,367		8.9	%	18.9	%
Mobile banking		303,147		254,054		118,641		19.3	%	155.5	%
Direct Debit		417,399		418,500		408,430		-0.3	%	2.2	%
Points of Sale P.O.S.		4,273,894		4,052,376		3,474,223		5.5	%	23.0	%
Other ATMs network		333,604		319,065		270,654		4.6	%	23.3	%
Total transactions		50,533,335		47,956,117		43,883,091		5.4	%	15.2	%

BCP’s network of distribution channels (only in Peru) continues to grow, specifically in terms of the number of BCP Agents, which continues to be the channel with the highest profile and growth (+8.7% QoQ). In this way, the total number of points of contact grew in 3Q10 (+7.0% QoQ), which is double the growth reported in 2Q10. A YoY analysis shows that the total number of points of contact has increased by more than one thousand.

	Balance as of				Change %
		3Q10	2Q10	3Q09	QoQ			YoY
Branches		324	325	330		-0.3	%		-1.8	%
ATMs		1,109	1,062	951		4.4	%		16.6	%
Agentes BCP		3,354	3,086	2,435		8.7	%		37.7	%
Total		4,787	4,473	3,716		7.0	%		28.8	%

II.6 Operating Costs and Efficiency

For the third consecutive quarter, BCP achieved an improvement in operating efficiency, which was reflected in a drop in the efficiency ratio, which went from 48.0% in 2Q10 to 46.3% in 3Q10. This positive evolution was due to an increase in income as well as an adequate control of expenses, which remained at levels similar to those seen in 2Q10.

Operating expenses	Quarter							Change %						Year to date						Change %
US$ 000		3Q10		2Q10		3Q09		QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Salaries and employees benefits		95,404		90,961		80,318			4.9	%		18.8	%		284,810			238,983			19.2	%
Administrative, general and tax expenses		67,549		67,866		59,269			-0.5	%		14.0	%		201,200			186,741			7.7	%
Depreciation and amortizacion		17,392		16,837		14,712			3.3	%		18.2	%		50,652			42,556			19.0	%
Other expenses		4,406		7,516		6,794			-41.4	%		-35.1	%		16,602			27,493			-39.6	%
Total operating expenses		184,751		183,180		161,093			0.9	%		14.7	%		553,264			495,773			11.6	%
Efficiency ratio		46.3	%	48.0	%	48.8	%								48.5	%		51.1	%

Operating expenses were similar QoQ, reporting an increase of only 0.9%. This slight variation was due primarily to an increase in salaries and employee benefits (+4.9% QoQ)-in line with business expansion- which was offset by a reduction in other expenses and administrative expenses.

The table below provides details on the administrative expensive and quarterly variations:

Administrative Expenses	Quarter															Change %						Year to date				Change %
US$ 000	3Q10		%			2Q10		%			3Q09		%			QoQ			YoY			Sep 10		Sep 09		Sep 10 / Sep 09
Marketing		8,815		13.0	%		8,133		12.0	%		7,197		11.5	%		8.4	%		22.5	%		22,256		19,321		15.2	%
Systems		9,270		13.7	%		7,994		11.8	%		7,463		11.9	%		16.0	%		24.2	%		26,615		26,212		1.5	%
Transport		6,057		9.0	%		5,530		8.1	%		5,448		8.7	%		9.5	%		11.2	%		17,532		15,653		12.0	%
Maintenance		2,971		4.4	%		2,530		3.7	%		3,052		4.9	%		17.4	%		-2.7	%		8,175		8,495		-3.8	%
Communications		3,857		5.7	%		4,734		7.0	%		3,312		5.3	%		-18.5	%		16.5	%		12,203		9,447		29.2	%
Consulting		3,076		4.6	%		4,460		6.6	%		6,500		10.4	%		-31.0	%		-52.7	%		9,801		13,686		-28.4	%
Others		17,621		26.1	%		19,246		28.4	%		18,209		29.1	%		-8.4	%		-3.2	%		56,836		56,414		0.7	%
Taxes and contributions		6,635		9.8	%		7,009		10.3	%		5,937		9.5	%		-5.3	%		11.8	%		20,337		18,064		12.6	%
Other subsidiaries and eliminations, net		9,247		13.7	%		8,231		12.1	%		5,451		8.7	%		12.3	%		69.6	%		27,445		19,447		41.1	%
Total Administrative Expenses		67,549		100.0	%		67,867		100.0	%		62,569		100.0	%		-0.5	%		8.0	%		201,200		186,740		7.7	%

II.7 Shareholders’ Equity and Regulatory Capital

The BIS ratio rose to 13.89% at the end of 3Q10 due to a decline in total RWA (-1.1% QoQ) and an increase in regulatory capital (+0.8% QoQ). Additionally, ROAE remained at an excellent level of 31.3%, which reflects the high profitability of the banking business.

Shareholders' equity	Quarter									Change %
US$ 000	3Q10			2Q10			3Q09			QoQ			YoY
Capital stock		783,213			783,213			667,250			0.0	%		17.4	%
Reserves		388,309			388,309			388,275			0.0	%		0.0	%
Unrealized gains and losses		131,056			84,959			94,797			54.3	%		38.2	%
Retained earnings		187,143			187,143			115,922			0.0	%		61.4	%
Income for the year		374,750			236,130			289,980			58.7	%		29.2	%
Net shareholders' equity		1,864,471			1,679,754			1,556,224			11.0	%		19.8	%
Return on average equity (ROAE)		31.3	%		33.0	%		27.1	%

The QoQ analysis reveals that net shareholders’ equity grew 11.0% due to higher retained earnings this quarter (+58.7%). Although net income increased this quarter with regard to 2Q10, higher growth in shareholders’ equity explains the fact that ROAE has dropped to 31.3%, which is still a very favorable level and is ample evidence that BCP’s profitability remains high.

The BIS ratio went from 13.62% at the end of 2Q10 to 13.89% at the end of 3Q10. This was primarily attributable to a 1.1% QoQ decline in total RWA (risk-weighted assets), which offset the marginal increase of 0.8% QoQ in regulatory capital.

Total RWA contracted 1.1% QoQ due to the 20.9% QoQ decline in assets weighted for market risk given that BCP maintains a lower position in dollars. A contraction in assets weighted for credit risk was also evident despite a significant increase in gross loans of 5.7% QoQ. This is attributable to the fact that as of July, the standard method (Basel II) was used to calculate credit RWA. This methodology is more sensitive to the portfolio’s risk quality and in the case of BCP (good risk profile), the change has meant that a significant percentage of the portfolio is subject to lower weighted risk rates such as AA+ Corporate loans, off-balance sheet and loans with liquid guarantees.

Although the credit and operational RWA declined, the associated capital requirements increased due to the higher capital requirements set by the Peruvian regulatory entity (9.8% as of July; previously 9.5%).

Finally, BCP, based on its preliminary analysis of the impact of implementing Basel III for 2018, believes that it has complied with the new capital requirements. This is still subject to the regulatory entity’s interpretation (Superintendence of Banking, Insurance and Private Pension Fund Administrators) of the treatment given to hybrid bonds and the magnitude and composition of additional requirements for pro-cyclical capital and systemic risk.

Regulatory Capital and Capital Adequacy Ratios	Balance as of									Change %
US$ 000	Sep 10			Jun 10			Sep 09			Sep 10 / Jun 10			Sep 10 / Sep 09
Capital Stock		917,739			905,074			772,638			1.4	%		18.8	%
Legal and Other capital reserves		476,912			470,331			460,838			1.4	%		3.5	%
Accumulated earnings with capitalization agreement		-			-			114,234			-			-
Loan loss reserves (1)		167,661			168,228			133,804			-0.3	%		25.3	%
Perpetual subordinated debt		250,000			250,000			-			0.0	%		-
Subordinated Debt		448,728			446,011			432,418			0.6	%		3.8	%
Unrealized profit (loss)		-			-			-			-			-
Investment in subsidiaries and others, net of unrealized profit		(232,388	)		(227,269	)		(174,911	)		2.3	%		32.9	%
Goodwill		(43,805	)		(43,200	)		-			1.4	%		-
Total Regulatory Capital		1,984,848			1,969,175			1,739,021			0.8	%		14.1	%

Tier 1 (2)		1,560,999			1,514,939			1,289,384			3.0	%		21.1	%
Tier 2 (3) + Tier 3 (4)		423,850			454,236			449,636			-6.7	%		-5.7	%

Total risk-weighted assets		14,290,912			14,454,607			12,024,011			-1.1	%		18.9	%
Market risk-weighted assets (5)		410,725			519,321			897,171			-20.9	%		-54.2	%
Credit risk-weighted assets		13,396,056			13,458,244			10,684,874			-0.5	%		25.4	%
Operational risk-weighted assets (6)		484,132			477,043			441,966			1.5	%		9.5	%

Market risk capital requirement (5)		40,251			49,335			85,231			-18.4	%		-52.8	%
Credit risk capital requirement		1,312,813			1,278,533			1,015,063			2.7	%		29.3	%
Operational risk capital requirement (6)		47,445			45,319			41,987			4.7	%		13.0	%
Capital ratios
BIS ratio (7)		13.9	%		13.6	%		14.5	%
Risk-weighted assets (8) / Regulatory Capital		7.20			7.34			6.91

(1) Until June 2009, loan loss reserves up to 1% of gross loans. Since July 2009, up to 1.25% of total risk-weighted assets.

(2) Tier 1 = Capital + Reserves + Accumulated earnings with capitalization agreement + Unrealized profit in subsidiaries

+ Perpetual subordinated debt (maximum amount that can be included is 17.65% of Capital + Reserves

+ Accumulated earnings with capitalization agreement + Unrealized gains - Goodwill).

(3) Tier 2 = Subordinated debt + Loan loss reserves - (0.5 x Investment in subsidiaries)

(4) Tier 3 = Subordinated debt covering market risk only. Tier 3 exists since 1Q10.

(5) Since July 2009, it includes capital requirement to cover price and rate risk.

(6) Effective as of July 2009.

(7) Regulatory Capital / Risk-weighted assets (legal minimum = 9.8% since July 2010)

(8) Until June 2009, Risk-weighted assets = Credit risk-weighted assets + Capital requirement to cover market risk * 11. Since July 2009,

Risk-weighted assets = Credit risk-weighted assets * 0.96 + Capital requirement to cover market risk * 10.5 + Capital requirement to cover operational risk * 10.5

III. Banco de Crédito de Bolivia

Results

In 3Q10, BCP Bolivia reported net income of US$ 3.4 million, whereby this will probably set the new level of income that can be achieved within the existent economic framework. The results of this quarter represented a 3.7% increase QoQ and a 51.4% contraction YoY. The QoQ increase was due primarily to: (i) higher non-financial income (13.6%), and (ii) lower net provisions for loans (-26.7%). All above offset the reduction of 4.9% QoQ in net interest margin.

Financial income rose due to an increase in the volume of FX transactions, which compensated the effect of the exchange rate that remains fixed and the reduction of the spread, growth in volume has generated an increase in financial income. Net loan provisions fell after the portfolio was restructured to comply with ASFI changes in provision requirements. The main modifications to these norms include a simplification in the portfolio’s segmentation from eight classes to six. This scenario, coupled with the fact that the bank’s policies- which were much more conservative than the legislation previously in effect- have been aligned with ASFI legislation, means that the portfolio is much healthier. This had led BCP to reduce the provisions stipulated under previous policies. The past due loan ratio has also fallen, which has further reduced the need for loan provisions.

The drop in net income YoY (-51.4%) is primarily attributable to lower net interest income, which was generated by (i) excess liquidity, (ii) a decline in the borrowing rate and (iii) an increase in deposits rates (regulated by ASFI). The elimination of some fees (regulated by ASFI) and higher net loan provisions (12.1% YoY) have been insufficient to offset the effect of smaller margin (-33.9% YoY) on the net income.

The prudent strategy to main loan risk allowed BCP to achieve a past due loan ratio of 1.4% in 3Q10 (1.5% in 2Q10 and 2.3% in 3Q09) coverage of 304.5% (284.6% in 2Q10 and 241.3% in 3Q09). These indicators show that BCP Bolivia was one of the top performers in the Bolivian banking system, which reported ratios of 2.5% and 197.2%, respectively, at the end of 3Q10. BCP Bolivia’s ROAE was 18.3%, lower than the 20.0% reported in June 2010 and below the 30.3% registered in September 2009.

Assets and Liabilities

Total loans at the end of September 2010 were US$ 570.7 million, which indicates an 8.6% increase over the US$ 525.6 million reported in June 2010 and 21.2% above the level reported in September 2009. Loan growth in the third quarter was attributable to the bank’s decision to adopt a more aggressive loan strategy due to good economic indicators and the fact that its past due loan ratio was one of the lowest in the banking system.

This quarter, Retail Banking’s performance, which reported 9.0% growth QoQ and 20.1% YoY, was particularly noteworthy. This increase has an important impact on the bank’s results given it represents 53.3% of the total portfolio (Wholesale Banking represents 43.6% and Special Accounts, 3.1%)and generates higher margins. The Retail Banking product that showed the highest QoQ growth was the commercial segment (19.4%), which represents 8.6% of this portfolio. The Home Mortgage segment represents 44.9% of the Retail Banking portfolio and grew 4.1% QoQ and 13.7% YoY.

In terms of liabilities, BCP Bolivia’s deposits increased 6.5% QoQ but fell 8.3% YoY. The QoQ increase is primarily attributable to growth of 21.1% and 4.8% in time deposits and savings accounts, respectively, while the YoY contraction was due to a 24.4% decline in savings accounts with regard to September 2009. This contraction can be traced to a drop savings accounts held by institutional clients, which generated excess liquidity.

Shareholders’ equity increased 3.4% QoQ but fell 8.4% QoQ due to lower quarterly earnings.

BCP Bolivia maintained an 11.7% share of the market of current loans (not including rescheduled loans) and holds 11.8% of total deposits. This situates the bank in third place in terms of loans and fourth in deposits in the Bolivian banking system. BCP Bolivia continues to position itself as a bank on the move that provides simple and efficient technological solutions by offering innovative transactional products and increasingly sophisticated on-line services.

Banco de Crédito de Bolivia	Quarter									Change %						Year to date						Change %
US$ million	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Net financial income		7.7			8.1			11.6			-4.9	%		-33.9	%		24.6			38.7			-36.4	%
Net provisions for loan losses		(1.3	)		(1.8	)		(1.2	)		-26.7	%		12.1	%		(3.4	)		(5.2	)		-34.9	%
Non financial income		9.4			8.3			9.0			13.6	%		5.3	%		26.8			29.4			-8.7	%
Operating expenses		(11.6	)		(11.0	)		(11.6	)		5.3	%		-0.4	%		(33.6	)		(37.5	)		-10.5	%
Translation result		0.1			(0.1	)		0.1			235.9	%		14.1	%		0.0			(0.3	)		102.9	%
Income tax		(0.8	)		(0.2	)		(0.7	)		312.0	%		12.3	%		(2.1	)		(2.5	)		-15.6	%
Net Income		3.4			3.3			7.1			3.7	%		-51.4	%		12.4			22.6			-45.2	%
Total loans		570.7			525.6			470.8			8.6	%		21.2	%
Past due loans		7.9			8.1			10.7			-2.6	%		-26.4	%
Net provisions for possible loan losses		(23.1	)		(22.3	)		(24.0	)		3.8	%		-3.8	%
Total investments		224.5			267.0			328.1			-15.9	%		-31.6	%
Total assets		1,014.2			965.8			1,120.1			5.0	%		-9.5	%
Total deposits		888.2			833.8			968.6			6.5	%		-8.3	%
Net shareholders' equity		92.6			89.5			101.1			3.4	%		-8.4	%
PDL / total loans		1.39	%		1.54	%		2.28	%
Coverage ratio of PDLs		304.5	%		284.6	%		241.3	%
ROAE*		18.3	%		20.0	%		30.3	%
Branches		65			65			65
Agentes		35			40			55
ATMs		172			171			172
Employees		1,396			1,368			1,522

* ROAE: (Acumulated net income / average monthly equity (from dec. to date))/(number of months)*12

IV. Financiera Edyficar

Edyficar	Quarter					Year to date			Change %
US$ 000		3Q10		2Q10		Sep 10			QoQ
Net financial income		21,571		19,499			58,371			10.6	%
Total provisions for loan loasses		(1,887	)	(1,238	)		(2,988	)		52.4	%
Non financial income		223		217			533			2.8	%
Operating expenses		(13,147	)	(10,996	)		(33,905	)		19.6	%
Operating Income		6,761		7,482			22,012			-9.6	%
Translation results		1,138		381			2,968			198.5	%
Worker's profit sharing and income taxes		(2,440	)	(2,740	)		(7,408	)		-11.0	%
Net income		5,459		5,123			17,572			6.6	%
Contribution to BCP		5,448		5,112			17,535			6.6	%
Total loans		318,708		289,392			318,708			10.1	%
Past due loans		13,352		13,314			13,352			0.3	%
Net provisions for possible loan losses		(24,987	)	(25,136	)		(24,987	)		-0.6	%
Total assets		375,773		361,827			375,773			3.9	%
Deposits and obligations		74,271		74,708			74,271			-0.6	%
Net shareholders' equity		47,878		42,415			47,878			12.9	%
PDL / Total loans		4.2	%	4.6	%		4.2	%
Coverage ratio of PDLs		187.1	%	188.8	%		187.1	%
Return on average equity*		22.8	%	22.6	%		24.6	%
Branches		105		104
Employees		1,534		1,538

* Net shareholder´s equity includes US$ 50.7 millions from goodwill

Edyficar’s performance in 3Q10 exceeded 2Q10’s excellent results. Noteworthy aspects include:

(i) The 10.1% QoQ increase in loans, which topped 2Q10’s QoQ growth of 6.6%;

(ii) The past due ratio rate went from 4.6% in 2Q10 to 4.2% in 3Q10, which was attributable to loan growth and the fact that the level of past due loans reflected virtually no change QoQ;

(iii) The 6.6% QoQ increase in net earnings, which increased Edyficar’s contributions to BCP and Credicorp; and

(iv) A satisfactory ROAE of 22.8% (considering the US$ 50.7 million in goodwill) and 48.4% (excluding goodwill).

Despite a strong increase in operating expenses to train new personnel to prepare for future growth, at the end of the third quarter, Edyficar reported net earnings of US$ 5.5 million, rising 6.6% QoQ. This good quarterly performance was attributable to a 10.6% increase in NII due to loan growth; lower tax provisions; and an increase in translation earnings, which was attributable to a 1.4% appreciation of the Nuevo Sol in comparison to the 0.5% reported in 2Q10.

NII reported significant growth (10.6% QoQ). This was due primarily to interest income stemming from considerable loan growth (10.1% QoQ) as well as adequate financial management. The latter was reflected in lower financial expenses and an earnings increase, which was attributable to a successful strategy to negotiate forward contracts.

Net loan provisions totaled US$ 1.9 million in 3Q10 (US$ 3.0 million accumulated during 2010). This represented an increase of US$ 650 mil QoQ, which was due to higher provisions taken to cover loan growth as well as voluntary provisions to maintain the coverage ratio. It is important to mention that provisions will be higher next year given that the accounting adjustment made at the time of purchase will be reported this year.

Operating expenses grew 19.6% QoQ. This was due primarily to an increase in personnel expenses stemming from investments in analyst training and additional projects to prepare Edyficar to capture market growth in the future and achieve the company’s goals.

Edyficar reported a past due ratio of 4.2% in 3Q10, which was lower than the 4.6% reported in 2Q10 due to significant loan growth. Currently, the company’s strategy is to focus on improving loan quality and collections management.

Finally, it is evident that Edyficar’s contribution to BCP continues to rise. This is reflected in the company’s ROAE, which reached 22.8% in 3Q10 and 24.6% in accumulated terms.

V. Atlantic Security Holding Corporation

Quarterly Results

In order to compare the results of 3Q10 and 2Q10, we have eliminated the effect of Credicorp’s dividends on 2Q10’s results, which totaled US$ 24.9 million (treasury shares), in the table below:

ASHC	Quarter									Change %						Year to Date				Change %
US$ millions	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10		Sep 09		Sep 10 / Sep 09
Net interest income		8.7			8.8			7.5			-0.8	%		16.9	%		26.7		20.0		33.7	%
Dividend income		0.2			0.1			0.1			45.4	%		15.2	%		0.4		0.2		119.7	%
Fees and commissions from services		2.1			2.0			1.5			4.7	%		38.1	%		6.4		4.0		60.2	%
Net gains on foreign exchange transactions		0.0			-0.1			0.1			127.8	%		-79.3	%		-0.3		-0.5		-41.6	%
Total earnings		11.0			10.8			9.3			1.9	%		18.9	%		33.2		23.7		28.8	%
Net Provisions		-1.5			0.0			-0.9			100.0	%		58.7	%		-1.5		-8.4		-82.2	%
Net gains from sale of securities		3.1			3.7			1.6			-18.0	%		92.9	%		10.4		3.3		218.9	%
Other income		-0.1			0.1			0.5			-180.6	%		-117.3	%		0.3		2.1		-86.2	%
Operating expenses		-1.9			-1.9			-2.0			-2.7	%		5.1	%		-5.6		-5.6		-0.6	%
Net income		10.6			12.8			8.4			-17.3	%		25.5	%		36.8		15.0		145.5	%
Net income / share		0.1			0.1			0.1			-17.3	%		25.5	%		0.4		0.2		145.5	%
Contribution to Credicorp		10.6			13.1			8.4			-18.9	%		25.6	%		37.1		14.9		149.6	%
Total loans		493.0			492.3			134.3			0.1	%		267.2	%
Total investments available for sale		781.5			714.6			825.2			9.4	%		-5.3	%
Total assets		1,527.2			1,388.6			1,508.4			10.0	%		1.2	%
Total deposits		1,249.8			1,121.7			1,247.7			11.4	%		0.2	%
Net shareholder's equity		261.2			243.0			218.6			7.5	%		19.5	%
Net interest margin		2.57	%		2.70	%		2.12	%
Efficiency ratio		13.6	%		12.7	%		17.7	%
Return on average equity		16.8	%		22.2	%		17.0	%
PDL / Total loans		0.00			0.00			0.00
Coverge ratio		0.2	%		0.2	%		1.0	%
BIS ratio		20.54	%		20.81	%		18.20	%

In the third quarter, Atlantic Security Holding Corporation (ASHC) reported net income of US$ 10.6 million. The quarterly results reflect the very respectable evolution of ASHC’s income, which grew 1.9% QoQ and 19% YoY. Nevertheless, a 17.3% drop in earnings was evident with regard to the US$12.8 million posted in the second quarter while the YoY evolution shows an increase of 25.5%.

The decline in net earnings is primarily attributable to the US$ 1.5 million provision taken in 3Q10 and a drop in realized earnings (US$ -0.6 million). In previous quarters, no provisions had been set aside for the investment portfolio; nevertheless, the bank, in accordance with its conservative and proactive policy, decided to set aside reserves to mitigate uncertainty regarding some issuers’ recovery. Realized earnings for securities sales totaled US$ 3.1 million this quarter, which represents an 18% decline QoQ due to lower trading this quarter.

Even more noteworthy was the evolution of ASHC’s income if we compare the total accumulated in the first 3 quarters of the year with the same period last year. Interest income grew 33.7% and fee income, the true driver of growth in the asset management business, grew an impressive 60.2% thus far this year. The impact on total income is also positive, reaching US$ 11 million in 3Q10 and US$58 million in annual accumulated terms. This reflects a 21% increase YoY, which, after including realized gains on securities sales due to market recovery, led accumulated net income to increase almost 145.5% to reach US$ 36.8 million.

If we look at quarterly performance more closely, fee income in the third quarter was US$ 2.1 million, which represents a 4.7% increase QoQ and 38.1% YoY. Fee income from trading and financial instruments in custody, which were adversely affected in the first two quarters by Peruvian tax reform in 2010, recovered progressively thanks to new loans and the favorable market valuation of funds under management. This has generated stable income in terms of fees for placement, management and custody.

The efficiency ratio was situated at 13.6%, which was slightly higher than the 12.7% reported n 2Q10. This drop in efficiency is attributable to lower earnings given that general expenses remained stable quarter-to-quarter. A YoY comparison indicates that the efficiency ratio has improved 4.1%.

ROAE fell QoQ, settling at 16.8% 3Q10. This was due primarily to lower earnings in 2Q10 and higher average shareholder’s equity.

Assets and Liabilities

As indicated below, interest earning assets totaled US$ 1,424 million, which represents increases of 10.8% QoQ and 1.8% YoY. A significant portion of this jump in asset volume is attributable to an increase in customer deposits.

The most significant variation in interest earning assets is evident in the YoY figures for Cash and Banks and Loans given that until 3Q09, ASHC maintained deposits in the Banco de Credito for US$ 356 Million, which reverted to ASHC’s loan portfolio through a credit line signed by both entities in 2010.

Investments increased 9.6% QoQ, which reflects market opportunities to invest and reinvest cash surpluses. In comparison with the same period last year, investments fell 4.9%. This drop is attributable to the current assets structure, which includes a portion of this decline as available cash.

Interest earning assets*	Quarter						Change %
US$ million	3Q10		2Q10		3Q09		QoQ			YoY
Due from banks		164		93		458		76.2	%		-64.2	%
Loans		493		492		134		0.1	%		267.2	%
Investments		767		700		807		9.6	%		-4.9	%
Total interest-earning assets		1,424		1,285		1,399		10.8	%		1.8	%
(*) Excludes investments in equities and mutual funds.

A significant portion of the instruments are investment grade (72%), which reflects the bank’s prudent policy to concentrate portfolio investment in instruments with a good risk profile.

Customer deposits increased 11.4% with regard to 2Q10, going from US$ 1,121 million to US$ 1,250 million. Interest rates for deposits experienced a downward trend last year, which caused deposits to drop during the first three quarters of 2010. Nevertheless, it is important to point out that this decline was associated with a higher preference for ASHC’s investment products.

Equity has grown sustainably, demonstrating an increase of 7.5% QoQ and 19.5% YoY (going from US$ 243 million at the end of 2Q10 to US$ 261 million at the close of 3Q10). This increase is reflected primarily in two components: quarterly net income for US$10.6 million and an increase in the market value of investments due to unrealized earnings of US$ 7.5 million, which pushed total value to US$ 32.9 million.

Asset Administration

The deposits’ total and AuM include investments in proprietary mutual funds and financial instruments in custody. The total of these funds has increased 14.7% QoQ and 30.6% YoY.

AuM increased 16.2% QoQ. This is consistent with the increase in investment observed during the last few quarters due to overall market recovery and corresponding improvements in the market value of investments and AuM, which have driven customers to increase their positions through direct purchases. The YoY increase is also due to market recovery and an increase in purchases.

VI. Prima AFP

PRIMA’s fee income grew 4.1% QoQ to reach US$ 21.8 million and as a result operating income increased 3.8% QoQ. PRIMA’s net income in the third quarter totaled US$ 5.7 million, which represented a decline of 2.8% QoQ that was attributable to higher tax provisions and employee profit sharing.

PRIMA’s commercial strategy in the third quarter focused on new captures and affiliations. In this context, new affiliations were up QoQ due to an increase in the economically active population. On the other hand, transfers between AFPs remained low. At the end of the third quarter, PRIMA’s funds under management represented 30.9% of total funds managed by the system, confirming the company’s leadership in market share for this indicator. PRIMA accounted for 32.0% of the system’s total contributions collections and achieved a 43.4% share of the voluntary contributions market.

Quarterly main indicators and market share

	PRIMA 3Q10		System 3Q10		Part. 3Q10 %			PRIMA 2Q10		System 2Q10		Part. 2Q10 %
Affiliates		1,110,105		4,587,455		24.2	%		1,098,912		4,540,512		24.2	%
New affiliations (1)		13,592		56,112		24.2	%		12,534		47,785		26.2	%
Funds under management US$ million		8,911		28,836		30.9	%		7,657		24,807		30.9	%
Collections US$ million (1)		147		460		32.0	%		141		442		31.8	%
Voluntary contributions US$ million		101		233		43.4	%		86		203		42.4	%
RAM US$ million (2)		423		1,325		31.9	%		407		1,270		32.0	%

Source: Superintendencia de Banca, Seguros y AFP

(1) Accumulated to the Quarter.

(2) PRIMA AFP estimates: average of aggregated income during the last 4 months excluding special collections and voluntary contribution fees

Commercial Results

In 3Q10, new affiliations showed an increase with regard to last quarter’s figures while the number of transfers fell slightly. In this context, there were approximately 15,900 total captures. In disaggregated terms, this represented close to 13,600 new affiliations and 2,300 transfers and was in line with the company’s commercial targets. With regards to last quarter, new affiliations increased 8.4% and transfers fell 3%. It is important to mention that net affiliations and transfers (entry and exit) were positive for PRIMA in terms of QoQ RAM evolution. RAM continues to follow an upward trend, which has helped PRIMA maintain market leadership with a 31.9% share.

At the end of the third quarter, PRIMA’s funds under management reached US$ 8,911 million, which represented 30.9% of the system total. This confirms PRIMA’s market leadership in terms of this indicator.

Investments

PRIMA’s funds under management demonstrated favorable results in the third quarter. This was reflected in an increase of its managed portfolio, which totaled US$ 8,911 million at the end of September. Profitability at twelve months (September 2010/September 2009) was 7.21%, 15.80% and 21.71% for funds 1, 2 and 3, respectively. With these results, Prima is market leader in profitability for funds 2 and 3 and is in second place in fund 1.

Pension funds are long-term by nature and comparisons should contemplate this fact. With this in mind, annualized profitability over a five-year period (September 2010 / September 2005) for fund 2 – the only fund in the system at that time- was 15.17%, which represents the highest profitability of the system. If we extend the period of analysis to include the time period ranging from the system’s start-up (17 years ago) to present day, the private pension system has achieved an average nominal annualized yield of 14.50% and a real figure of 9.07%.

The table below shows the structure of PRIMA’s managed portfolio at the end of the third quarter:

Funds under management as of September 2010
	Sep 10		Share %			Jun 10		Share %
Fund 1		699		7.8	%		658		8.6	%
Fund 2		5,889		66.1	%		5,122		66.9	%
Fund 3		2,323		26.1	%		1,877		24.5	%
Total US$ millon		8,911		100	%		7,657		100	%
Source: Superintendencia de Banca, Seguros y AFP

Financial Results

PRIMA’s net earnings in the third quarter were US$ 5.7 million, which represents a 2.8% decline QoQ. This is attributable to higher tax provisions and employee profit sharing this quarter rather than operating income, which increased 3.8% QoQ. Operating income is backed by a solid income generation (monthly insured wages), an appreciation in local currency and the company’s conservative approach to operating expenses. Nevertheless, total operating expenses increased QoQ due to a seasonality effect attributable to higher advertising and marketing expenses this quarter.

With regard to YoY results, operating income increased 24.6% and net income remained virtually unchanged (+0.6%) due to the fact that in 3Q09, reversals were taken in the tax and employee profit sharing account that generated differences in the YoY comparison.

Income

In the third quarter of 2010, PRIMA reported fee income of US$ 21.8 million, which represented 4.1% growth QoQ. This increase in income was due to adequate commercial management and the domestic economy’s good evolution as well as an appreciation in local currency.

The favorable effect on income is also evident in the YoY comparison, which indicates an increase of 15.0%.

In terms of RAM volume, which indicates aggregate salaries of system affiliates and represents each company’s income base, PRIMA has maintained a solid market position with a RAM base of US$ 423 million at the end of September 2010.

Estimate of base to calculate earnings - US$ million
	PRIMA - Sep 2010			System - Sep 2010		Share %
Income (1)		7.4			25.1		29.5	%
Administrative fees		1.75	%	n.a.		n.a.
RAM base (2)		423			1,325		31.9	%
PRIMA AFP estimates. In accordance to local public infomation, (CONASEV) (1) Average income from the last four months, excluding special collections and voluntary contribution fees (2) RAM: average of aggregated income during the last 4 months excluding special collections and voluntary contributions fees.

Expenditures

In the third quarter of 2010, PRIMA’s operating expenses demonstrated an increase of 5.9% with regard to the previous quarter due to higher provisions for personnel expenses and charges for third party services (investment management and advertising/marketing).

Nevertheless, thanks to higher earnings this quarter, operating income increased 3.8% QoQ. It is important to point out that expenses for depreciation and amortization totaled US$ 2.4 million, which includes charges for intangible asset amortization (obtained due to the merger with Unión Vida), as well as depreciation and amortization on real estate, equipment and systems.

Provisions associated with income tax payments and employee profit sharing increased in the third quarter, resulting in charges for US$ 3.8 million. Local currency appreciation in 3Q10 led to a translation loss and deferred liability adjustment for -US$ 88 thousand, which was primarily attributable to the exchange rate’s effect on liabilities denominated in Nuevos Soles.

Finally, PRIMA’s net income in the third quarter totaled US$ 5.7 million, which represented a slight decrease with regard to 2Q10’s results.

At the end of September 2010, PRIMA reported an assets level of US$ 260.2 million. Shareholders’ equity reached US$ 169.2 million and liabilities totaled US$ 91.0 million.

The table below provides details on the financial results:

										Change %						Year to date						Change %
Main financial indicators (US$ thousand) (1)	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Income from commissions		21,812			20,943			18,972			4.1	%		15.0	%		63,249			58,887			7.4	%
Administrative and sale expenses		(9,516	)		(8,984	)		(8,718	)		5.9	%		9.2	%		(27,327	)		(25,497	)		7.2	%
Depreciation and amortization		(2,443	)		(2,465	)		(2,344	)		-0.9	%		4.2	%		(7,375	)		(6,967	)		5.9	%
Operating income		9,853			9,494			7,910			3.8	%		24.6	%		28,548			26,424			8.0	%
Other income and expenses, net		(298	)		(736	)		(1,035	)		-59.6	%		-71.2	%		(1,663	)		(2,472	)		-32.7	%
Employee profit sharing and income tax		(3,771	)		(2,826	)		(749	)		33.4	%		403.5	%		(9,003	)		(6,517	)		38.1	%
Net income before translation results		5,784			5,932			6,126			-2.5	%		-5.6	%		17,882			17,434			2.6	%
Translations results and deferred liabilities		(88	)		(75	)		(462	)		17.3	%		-80.9	%		(383	)		(860	)		-55.4	%
Net income		5,696			5,857			5,664			-2.7	%		0.6	%		17,499			16,574			5.6	%
Total assets		260,186			242,363			241,161			7.4	%		7.9	%
Total liabilities		91,002			86,417			86,011			5.3	%		5.8	%
Net shareholders' equity		169,184			155,945			155,150			8.5	%		9.0	%

(1) IFRS

VII. El Pacífico Peruano Suiza and Subsidiaries

Grupo Pacifico

Pacífico Insurance Group, which is comprised of general insurance (PPS), life insurance (PV) and health insurance (EPS), demonstrated a significant increase in premiums across its business lines; significant growth in net financial income; and a stable loss ratio, which is reflected in net income of US$ 13.7 million in 3Q10. This figure, although lower than the US$ 16.5 million posted in 2Q10, tops 3Q09's net income of US$ 13.3 million. The significant increase in premiums in the property and casualty business is attributable to an increase in policies with the State and the construction sector. Many of these contracts are ceded to the facultative market, while the increase in premiums in the life segment is due to higher sales of pension products.

The underwriting result in 3Q10 totaled US$ 24.2 million, which represents a 12.8% decrease with regard to the US$ 27.8 million obtained in 2Q10. This is primarily attributable to the life insurance business (PV), which reported: i) higher sales for retirement plans in 3Q10, which led to higher underwriting reserves and subsequently lower net earned premiums this quarter (US$ 35.9 million in 3Q10 vs. US$ 39.8 million in 2Q10); ii) higher acquisition costs, which went from US$ 11.4MM in 2Q10 to US$ 12.9MM in 3Q10; and iii) a higher loss ratio of 70.2% vs. 60.4% in 2Q10.

Net financial income reported earnings of US$ 25.3 million. This represented a 20.8% increase with regard to the US$ 20.9 million reported in 2Q10 and was mainly attributable to the life insurance business (PV).

General expenses rose to US$ 29.4 million in 3Q10 vs. US$ 25.1 million in 2Q10, due primarily to: i) an increase in third party services associated with consultancy and ii) higher provisions for uncollectible reinsurance reserves, both in the general insurance business (PPS).

Finally, the company’s contribution to Credicorp in 3Q10 was US$ 10.4 million, which is 16.6% lower than 2Q10’s figure but represents a 3.5% increase of US$ 10.1 million in terms of 3Q09’s level.

In this scenario, Pacifico Insurance Group reported net income of US$ 42.3 million accumulated to the end of September, which represents an increase of 28.6% with regard to the US$ 32.9 million obtained during the same period last year. The aforementioned is the result of higher turnover in all business lines, and a significant drop in claims in general and life insurance businesses.

US$ Thousand	Net income												Adjustment for			Total
Period	PPS			PV*			EPS			PGA*			Consolidation			Contribution
3Q09		9,555			4,263			(540	)		13,277			(3,189	)		10,088
4Q09		9,004			6,495			788			16,288			(3,917	)		12,372
1Q10		5,626			4,810			1,658			12,095			(3,603	)		8,492
2Q10		8,101			6,502			1,872			16,475			(3,957	)		12,518
3Q10		7,665			4,316			1,760			13,741			(3,302	)		10,439
QoQ		-5.4	%		-33.6	%		-6.0	%		-16.6	%		-			-16.6	%
YoY		-19.8	%		1.2	%		425.7	%		3.5	%		-			3.5	%

* After deducting minority interest

Pacífico General Insurance (PPS)

PPS’s net income in 3Q10 was US$ 7.7 million, which was lower than the US$ 8.1 million reported in 2Q10 and the US$ 9.6 million posted in 3Q09. Nevertheless, net income of US$ 21.4 million accumulated to the end of September, represents an increase of 25.0% with regard to the same period last year. It is important to emphasize that the underwriting result reflects a significant increase of 12.9% with regard to 2Q10 due to a considerable decline in net claims in property and casualty (P & C).

The difference in net income with regard to 2Q10 is primarily attributable to: i) lower financial income, which fell 12.3% QoQ from US$ 6.6 million in 2Q10 to US$ 5.8 million in 3Q10 due to a drop in dividends payments this quarter; and ii) an increase in general expenses, which went from US$ 13.3 million in 2Q10 to US$ 17.0 million in 3Q10 due to an increase in third party consultancy services and provisions for uncollectible reinsurance reserves.

Technical Results by Business Unit

	3Q10												2Q10												3Q09
US$ millon	Vehicle Insurance			Private Health			P&C			TOTAL PPS			Vehicle Insurance			Private Health			P&C			TOTAL PPS			Vehicle Insurance			Private Health			P&C			TOTAL PPS
Net earned premiums		20.8			16.0			14.3			51.1			20.6			15.2			15.3			51.1			20.3			13.8			16.2			50.3
Underwriting results		7.3			3.3			9.9			20.5			7.7			3.9			6.5			18.1			7.3			1.5			9.3			18.1
Loss ratio		42.5	%		70.8	%		16.1	%		44.0	%		41.8	%		66.2	%		41.8	%		49.0	%		45.5	%		81.2	%		32.9	%		51.2	%
Underwriting results / net earned premiums		35.1	%		20.6	%		69.1	%		40.1	%		37.5	%		25.5	%		42.6	%		35.5	%		36.2	%		10.7	%		57.1	%		36.0	%

PPS’s underwriting result was US$ 20.5 million. This 12.9% increase is due primarily to the Property and Casualty Line (P & C), which report a lower loss ratio and an increase in net earned premiums. In the paragraphs below, we provide details on this business line’s evolution.

The Property and Casualty business’s technical result increased US$ 3.3 million QoQ given that the overall loss ratio fell from 41.8% in2Q10 to 16.1% in 3Q10. This considerable decline is due to claims reversals from previous quarters as well as adequate risk selection and pricing. Additionally, net earned premiums reported 7% growth QoQ.

The underwriting result for Vehicle Insurance was US$ 7.3 million in 3Q10, dropping from US$ 7.7 million in 2Q10. This is attributable to lower underwriting results in both the Auto as well as the Statutory Auto Liability line (SOAT). Nevertheless, it is important to emphasize that in both lines exposure has increased and have effectively controlled net claims throughout the year.

The underwriting result for the Auto line was US$ 6.4 million in 3Q10, which falls below 2Q10’s figure and was due to an increase in net fees, which rose 11.2% QoQ.

The Statutory Auto Liability Line (SOAT) reported an underwriting result of US$ 0.9 million in 3Q10, which fell below the earnings of US$ 1.3 million registered in 2Q10. This is due primarily to higher net claims for severe incidents this quarter.

In 3Q10, the Private Health Insurance line obtained an underwriting result of US$ 3.3 million, which falls below the US$ 3.9 million reported in 2Q10. This was attributable to a higher loss ratio this quarter, which increased to 70.8% in 3Q10 (compared to 66.2% in 2Q10) due to an increase in claims typical in winter months. This situation was partially offset by higher net earned premiums, which grew 5% QoQ.

With regard to results in the general insurance segment in 3Q10 (PPS), it is important to mention the following: (i) income for net insurance premiums was US$ 51.1 million while (ii) total operating costs reached US$ 17.0 million. With these results, we obtain a (iii) combined ratio this quarter of 93.3%, 44.0 points of which correspond to losses and loss adjustment expenses, 16.0 points to business acquisition costs and 33.3 points to general or administrative expenses.

Pacífico Vida (PV)

Pacifico Vida obtained net income before minority interest of US$ 7.0 million in 3Q10, which is lower than the US$ 10.5 million obtained in 2Q10 and is attributable to the underwriting loss registered this quarter. Nevertheless, this result was offset by a significant increase in sales of pension products due to the Early Retirement Regimen recently implemented in the Peruvian market.

The underwriting result in 3Q10 of US$ (2.2) million is due primarily to: i) lower net earned premiums of US$ 35.9 million in 3Q10 vs. US$ 39.8 million in 2Q10 due to an increase in sales of pension products, which in turn required more underwriting reserves, ii) higher net claims in the third quarter of the year, which went from US$ 24.1 million in 2Q10 to US$ 25.2 million in 3Q10 and iii) higher acquisition costs due to an increase in fees, which totaled US$ 10.6 million in 3Q10 vs. US$ 9.4 million in 2Q10.

Pacífico Vida

Products	Total Premiums						Change %
US$ million	3Q10		2Q10		3Q09		QoQ			YoY
Individual life		14.8		14.0		12.7		5.8	%		16.7	%
Individual annuity		29.0		12.9		10.3		124.9	%		181.5	%
Disability & survivor (Pension)		11.5		11.3		8.2		1.1	%		40.7	%
Credit Life		9.0		7.2		5.9		24.1	%		53.3	%
Personal accidents		3.0		2.9		2.8		3.5	%		10.2	%
Group life (Law)		2.4		2.4		2.1		2.4	%		16.0	%
Group life		2.8		4.3		3.2		-36.3	%		-13.4	%
Limited workers compensation		3.5		2.6		2.8		36.3	%		25.5	%
TOTAL		75.9		57.6		47.8		31.7	%		58.9	%

The increase in net financial income of US$19.2 million this quarter, compared to the US$ 14.4 million obtained in 2Q10, is primarily attributable to higher earnings on sales of real estate and securities.

General expenses in 3Q10 fell slightly (0.6%) with regard to 2Q10, reaching a total of US$8.8 million.

After excluding Alico’s minority interest of US$ 2.6 million, net income in the life segment totaled US$ 4.3 million in 3Q10.

Pacífico Salud (EPS)

Pacifico Salud reported net income of US$ 1.8 million in 3Q10, which is similar to the US$ 1.9 million registered last quarter. It is important to mention that EPS’s YoY evolution is very satisfactory since it represented a loss of US$ 0.5 million in 3Q09.

EPS achieved an underwriting result of US$ 6.1 million, which tops the US$ 5.3 million obtained in 2Q10. In 3Q10, net earned premiums totaled US$ 37.7 million, which represents 8.5% growth QoQ. The loss ratio fell this quarter, dropping from 78.4% in 2Q10 to 77.4% in 3Q10. Nevertheless the higher operating expenses led to net earnings of US$ 1.8 million in 3Q10.

The extraordinary QoQ results achieved in terms of premium growth and underwriting results, which were 9.2% and 14.7% respectively, as well as solid accumulated growth in earnings during a seasonal period that is usually characterized by high claims, are proof that the company manages claims and continuous negotiation efficiently while optimizing the supply of health providers.

VIII. Economic Outlook

Economic Activity

According to estimates, during 3Q10, the economy grew at an annual rate that was slightly higher than 8.5%, which, when compared with growth in 2Q10, reflects a slowdown in the pace of growth. This is in line with the policies implemented by the Central Bank since May, which are directed at keeping growth moderate due to the inflationary risk implicit in rapid expansion that is differentiated by sectors.

The economy’s dynamism is not homogeneous across sectors. Similar to the last quarter, non-primary sectors, particularly construction and manufacturing, led growth. This contrasts with the situation of primary sectors, which lagged behind and even reported negative growth. It is important to point out that part of the upturn in growth is attributable to higher dynamism in tax collections for imported products, given that taxes are considered as a component of GDP.

In terms of spending type, private investment continues to be a pillar of growth. This will more than likely continue throughout the electoral process due to expectations linked to mining project execution. Exports have grown very little in comparison to last year while imports demonstrate considerable dynamism. In light of its recent evolution, the economy is expected to grow 7.8% in 2010. This forecast may be revised upward while growth for next year is expected to hit 6.3%

With regard to fiscal policy, the role that public spending has had in growth is unclear. Public spending appears to have slowed down since May, particularly in terms of investment, but public spending in August reported significant growth, driven by manufacturing activity associated with the purchase of buses for the Metropolitan line.

External Sector

According to estimates, in 2Q10, the trade balance registered a surplus of approximately US$ 1,200 MM, which is lower than the US$ 1,500 MM reported in previous quarters. This is primarily attributable to the fact that imports have bounced back in a context of a recovery in internal demand, reporting levels above those reported for exports, which have grown month on month throughout the year.

The evolution of exports is primarily the result of dynamism in traditional exports, which has benefited from higher international prices for gold in a context of uncertainty regarding the direction the global economy is taking. Non-traditional exports grew at a slower pace due to developed economies’ sluggish performance.

Imports have bounced back considerably. In this scenario, consumer goods were the most dynamic and although capital goods (+44.1%) grew less than any other component, they expanded at a faster rate than the most dynamic group of exports (traditional, 28.5%).

The trade balance continues to drop, which coupled with a recovery in the earnings that foreign mining companies send to their headquarters, has led to a negative current account balance. Nevertheless, investment flows to emerging countries have benefited from an additional round of monetary stimuli in developed countries, which means that the net entry of capital on the financial side will more than compensate for the negative balance. In this context, a significant increase in BCR’s international reserves has been reported (US$ 10,260 MM since the beginning of the year until the first week of October, which brought the balance to US$ 43,395 MM) as the bank has stepped up its efforts to buy dollars in the foreign exchange market.

Prices and Exchange Rate

At the end of 3Q10, annual inflation was situated at 2.4%, which reflects a slightly upward trend but remains within the target range set by the Central Bank (2% +/- 1pp). Expectations for the coming months indicate that the situation will remain stable.

In effect, core inflation has stabilized at approximately 1.8% over the last few months. This is due to the fact that although growth in the food and beverages segment has begun to slow down in comparison to the levels seen in the first few months of 2010, it continues to report the highest growth rate thus far this year. Figures for fuels have been revised downward, so one of the main sources of the increase in inflation during the first few months of the year appears to be under control.

At the end of the year, inflation will be situated in the upper end of the target range, bolstered by moderate increases in food prices and the fact that fuel prices have experienced almost no changes.

The exchange rate will maintain its downward pressure, situating at S/. 2.78 at year-end with a moderate downward bias, which will depend on the magnitude of the Central Bank’s interventions. Nevertheless, the issuing entity tends to actively intervene in the foreign exchange market due to the fact that in relative terms, Peru’s dollarization is high. BCR’s interventions have caused the Nuevo Sol to depreciate in real terms against the currencies of other Latin American countries, which has created a favorable competitive context.

Consumer Price Index

(Annual percentage variation)

Exchange Rate

(Nuevos Soles for US$)

Fiscal Sector

In August, transactions in the non-financial public sector continued to reflect growth in tax income. This was in turn attributable to more dynamism in indirect taxes, driven primarily by the ISC (associated with the evolution of imports).

In the last few months, total tax collections have grown at an annual rate of 13.7%, which is the highest figure recorded since July 2008. A 50.9% increase in import tax collections was reported in August and internal Added-value tax rose 45.6%. In this context, the economic result for the month of August was S/. 270 MM compared to the S/. 670 MM deficit reported for the same month last year when a slight adjustment was evident in public spending.

The fiscal goal for the end of this year is to reach a deficit equivalent to 1.5% of GDP. The recently appointed Minister of Economy has said that his priority will be to ensure that the deficit is closer to 1.0% of GDP. This will generate a margin for fiscal maneuvering if the global macroeconomic environment deteriorates.

Banking System

According to BCR’s figures for August, banking system loans to the private sector fell 0.2% MoM, which was the first drop since September of last year. This result was attributable to the evolution of loans denominated in foreign currency (which fell 0.6% in dollars) given that loans denominated in local currency, which slowed down slightly, continued to grow. In annual terms, loans increased 14.1% in August, maintaining an upward trend that began in February. This occurred despite the evolution of exchange rate given that loans would have grown at an annual rate of 16.9% if the exchange rate had remained steady.

Loan dollarization at entities authorized by the regulating entity to capture public deposits has continued a downward trend to settle at 44.8% in August, which is the lowest level recorded for this indicator in history. This is in line with the Central Bank’s intention to ensure that Peru is the first country in the world in which de-dollarization has been achieved without a shove from the issuing entity.

Finally, the downward trend for interest rates in soles was interrupted by BCR’s increases in reference rate, which began in May and were complemented by higher reserve requirements for both national and foreign currencies.

In this context, TAMN reached 18.3% at the end of 3Q10, which although lower than the figure recorded at the end of 2Q10 (19.1%), reflects an increase over August’s figure (18.1%). Along the same lines, TIPMN went from 1.4% at the end of 2Q10 to 1.7% in the month of September. The increase in rates for time deposits and CTS were particularly noteworthy.

In terms of rates in dollars, TAMEX increased from 8.0% in 2Q10 to 3.7% in 3Q10 despite a considerable drop in the cost of loans for micro businesses. TIPMEX went from 0.7% to 0.9% this quarter and similar to local currency, the increase in rates for time deposits and CTS stood out.

Main Financial Indicators

	2008		2009										2010
	Year		IQ		IIQ		IIIQ		IVQ		Year		IQ		IIQ

GDP (US$ MM)		127,643		27,914		31,927		32,010		35,302		127,153		35,222		38,880
Real GDP (var. %)		9.8		1.9		-1.2		-0.6		3.4		0.9		6.1		10.1
GDP per-capita (US$)		4,532		3,888		4,407		4,379		4,786		4,365		4,733		5,178
Domestic demand (var. %)		12.1		-0.8		-5.8		-5.0		0.4		-2.9		8.1		14.0
Consumption (var. %)		8.7		4.1		1.6		1.0		2.8		2.4		5.4		5.8
Private Investment (var. %)		28.3		4.3		-16.0		-14.6		-5.9		-8.6		12.2		28.4
CPI (annual change, %)		6.7		4.8		3.1		1.2		0.3		0.3		0.8		1.6
Exchange rate, eop (S/. per US$)		3.14		3.16		3.01		2.88		2.89		2.89		2.84		2.83
Devaluation (annual change, %)		4.7		15.2		1.5		-3.1		-8.0		-8.0		-10.2		-6.1
Exchange rate, average (S/. per US$)		2.92		3.18		3.02		2.96		2.89		3.01		2.84		2.84
Non-Financial Public Sector (% of GDP)		2.1		2.6		1.8		-3.2		-8.2		-1.9		2.9		1.8
Central government current revenues (% of GDP)		18.2		16.5		16.7		15.3		15.2		15.9		18.2		18.0
Tax Income (% of GDP)		15.6		14.6		14.1		13.0		13.4		13.8		15.4		15.6
Non Tax Income (% of GDP)		2.6		1.9		2.6		2.2		1.8		2.1		2.7		2.3
Current expenditures (% of GDP)		12.4		11.8		10.7		14.8		13.5		12.7		11.3		10.3
Capital expenditures (% of GDP)		4.4		3.5		4.5		6.1		10.1		6.1		3.9		5.9
Trade Balance (US$ MM)		3,090		513		1,335		1,838		2,188		5,873		1,570		1,517
Exports (US$ MM)		31,529		5,396		6,161		7,169		8,159		26,885		7,905		8,126
Imports (US$ MM)		28,439		4,883		4,827		5,330		5,971		21,011		6,335		6,609
Current Account Balance (US$ MM)		-4,723		-391		106		264		267		247		-460		-329
Current Account Balance (% of GDP)		-3.7		-1.4		0.3		0.8		0.8		0.2		-1.3		-0.8

Source: BCR, INEI, Estimated by BCP

Company Description:

Credicorp Ltd. (NYSE: BAP) is the leading financial services holding company in Peru. It primarily operates via its four principal Subsidiaries: Banco de Credito del Peru (BCP), Atlantic Security Holding Corporation (ASHC), El Pacífico-Peruano Suiza Compañía de Seguros y Reaseguros (PPS) and Grupo Credito. Credicorp is engaged principally in commercial banking (including trade finance, corporate finance and leasing services), insurance (including commercial property, transportation and marine hull, automobile, life, health and pension fund underwriting insurance) and investment banking (including brokerage services, asset management, trust, custody and securitization services, trading and investment). BCP is the Company's primary subsidiary.

Safe Harbor for Forward-Looking Statements

This material includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical information provided herein are forward-looking and may contain information about financial results, economic conditions, trends and known uncertainties.

The Company cautions readers that actual results could differ materially from those expected by the Company, depending on the outcome of certain factors, including, without limitation: (1) adverse changes in the Peruvian economy with respect to the rates of inflation, economic growth, currency devaluation, and other factors, (2) adverse changes in the Peruvian political situation, including, without limitation, the reversal of market-oriented reforms and economic recovery measures, or the failure of such measures and reforms to achieve their goals, and (3) adverse changes in the markets in which the Company operates, including increased competition, decreased demand for financial services, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements which may be made to reflect events or circumstances after the date hereof, including, without limitation, changes in the Company’s business strategy or planned capital expenditures, or to reflect the occurrence of unanticipated events.

CREDICORP LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In US$ thousand, IFRS)

	As of									Change %
	Sep 10			Jun 10			Sep 09			QoQ			YoY

ASSETS
Cash and due from banks
Non-interest bearing		961,902			859,446			754,875			11.9	%		27.4	%
Interest bearing		2,906,126			2,563,266			2,732,677			13.4	%		6.3	%
Total cash and due from banks		3,868,028			3,422,712			3,487,551			13.0	%		10.9	%

Marketable securities, net		73,986			60,037			89,718			23.2	%		-17.5	%

Loans		13,409,258			12,697,597			10,675,462			5.6	%		25.6	%
Current		13,195,983			12,481,727			10,509,564			5.7	%		25.6	%
Past due		213,275			215,871			165,898			-1.2	%		28.6	%
Less - net provisions for possible loan losses		(411,736	)		(387,078	)		(318,094	)		6.4	%		29.4	%
Loans, net		12,997,522			12,310,519			10,357,368			5.6	%		25.5	%


Investments securities available for sale		7,630,494			5,889,725			4,828,806			29.6	%		58.0	%
Reinsurance assets		145,945			150,364			135,688			-2.9	%		7.6	%
Premiums and other policy holder receivables		122,643			105,183			109,669			16.6	%		11.8	%
Property, plant and equipment, net		359,687			352,193			323,233			2.1	%		11.3	%
Due from customers on acceptances		57,901			63,351			63,901			-8.6	%		-9.4	%
Other assets		1,343,867			1,475,428			1,376,525			-8.9	%		-2.4	%

Total assets		26,600,072			23,829,513			20,772,459			11.6	%		28.1	%


LIABILITIES AND NET SHAREHOLDERS¨ EQUITY
Deposits and Obligations
Non-interest bearing		4,062,688			4,136,614			3,462,195			-1.8	%		17.3	%
Interest bearing		12,589,321			11,120,428			10,210,091			13.2	%		23.3	%
Total deposits and Obligations		16,652,009			15,257,042			13,672,287			9.1	%		21.8	%

Due to banks and correspondents		1,719,880			1,605,168			1,713,177			7.1	%		0.4	%
Acceptances outstanding		57,901			63,351			63,901			-8.6	%		-9.4	%
Reserves for property and casualty claims		962,422			929,135			874,243			3.6	%		10.1	%
Reserve for unearned premiums		163,362			150,045			140,907			8.9	%		15.9	%
Reinsurance payable		65,112			53,566			38,832			21.6	%		67.7	%
Bonds and subordinated debt		3,067,395			2,292,080			915,091			33.8	%		235.2	%
Other liabilities		992,131			850,999			1,052,250			16.6	%		-5.7	%
Minority interest		230,546			195,061			171,670			18.2	%		34.3	%
Total liabilities		23,910,758			21,396,447			18,642,357			11.8	%		28.3	%

Capital stock		471,912			471,912			471,912			0.0	%		0.0	%
Treasury stock		(74,712	)		(74,712	)		(74,242	)		0.0	%		0.6	%
Capital surplus		119,637			119,637			130,341			0.0	%		-8.2	%
Reserves		1,385,098			1,385,098			1,053,494			0.0	%		31.5	%
Unrealized gains		327,666			220,480			179,179			48.6	%		82.9	%
Retained earnings		459,713			310,649			369,418			48.0	%		24.4	%
Net shareholders' equity		2,689,315			2,433,065			2,130,102			10.5	%		26.3	%

Total liabilities and net shareholders' equity		26,600,072			23,829,513			20,772,459			11.6	%		28.1	%

Contingent credits		9,222,042			2,984,977			7,752,352			208.9	%		19.0	%

CREDICORP LTD. AND SUBSIDIARIES

QUARTERLY INCOME STATEMENT

(In US$ thousand, IFRS)

	Quarter									Change %						Year to date						Change %
	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Interest income and expense
Interest and dividend income		374,572			344,100			313,956			8.9	%		19.3	%		1,051,410			982,895			7.0	%
Interest expense		(103,134	)		(85,666	)		(99,409	)		20.4	%		3.7	%		(275,953	)		(328,940	)		-16.1	%
Net interest income		271,438			258,434			214,547			5.0	%		26.5	%		775,457			653,955			18.6	%

Net provisions for loan losses		(52,303	)		(30,895	)		(38,216	)		69.3	%		36.9	%		(126,379	)		(119,348	)		5.9	%

Non financial income
Fee income		134,813			128,506			110,460			4.9	%		22.0	%		388,749			310,656			25.1	%
Net gain on foreign exchange transactions		26,211			23,612			29,957			11.0	%		-12.5	%		75,262			69,133			8.9	%
Net gain on sales of securities		27,894			37,803			16,276			-26.2	%		71.4	%		72,719			100,150			-27.4	%
Other		5,069			6,633			5,903			-23.6	%		-14.1	%		21,619			26,802			-19.3	%
Total non financial income, net		193,987			196,554			162,596			-1.3	%		19.3	%		558,349			506,741			10.2	%
Insurance premiums and claims
Net premiums earned		120,702			121,575			108,965			-0.7	%		10.8	%		353,307			309,575			14.1	%
Net claims incurred		(10,690	)		(13,950	)		(13,522	)		-23.4	%		-20.9	%		(38,264	)		(51,281	)		-25.4	%
Increase in cost for life and health policies		(65,793	)		(62,108	)		(59,425	)		5.9	%		10.7	%		(192,820	)		(165,099	)		16.8	%
Total other operating income, net		44,220			45,517			36,018			-2.9	%		22.8	%		122,224			93,195			31.1	%
Operating expenses
Salaries and employees benefits		(115,235	)		(109,137	)		(95,765	)		5.6	%		20.3	%		(339,567	)		(284,062	)		19.5	%
Administrative, general and tax expenses		(81,463	)		(80,465	)		(70,436	)		1.2	%		15.7	%		(239,928	)		(219,104	)		9.5	%
Depreciation and amortization		(21,469	)		(20,889	)		(18,343	)		2.8	%		17.0	%		(62,865	)		(53,332	)		17.9	%
Merger expenses		-			-			-			100.0	%		100.0	%		-			-
Other		(25,115	)		(24,830	)		(27,025	)		1.1	%		-7.1	%		(73,939	)		(82,078	)		-9.9	%
Total operating expenses		(243,281	)		(235,321	)		(211,568	)		3.4	%		15.0	%		(716,300	)		(638,575	)		12.2	%

Operating income		214,060			234,289			163,377			-8.6	%		31.0	%		613,350			495,968			23.7	%
Translation result		14,467			4,675			12,046			209.4	%		20.1	%		31,202			11,296			176.2	%
Workers’ profit sharing		(8,039	)		(8,620	)		(5,747	)		-6.7	%		39.9	%		(22,132	)		(16,678	)		32.7	%
Income taxes		(54,902	)		(56,991	)		(39,538	)		-3.7	%		38.9	%		(151,322	)		(119,123	)		27.0	%
Net income		165,586			173,353			130,139			-4.5	%		27.2	%		471,098			371,463			26.8	%
Minority interest		9,360			11,429			8,432			-18.1	%		11.0	%		29,078			23,976			21.3	%
Net income attributed to Credicorp		156,226			161,924			121,707			-3.5	%		28.4	%		442,020			347,487			27.2	%

CREDICORP LTD. AND SUBSIDIARIES

SELECTED FINANCIAL INDICATORS

	Quarter									Year to date
	3Q10			2Q10			3Q09			Sep 10			Sep 09
Profitability
Net income per common share (US$ per share)(1)		1.96			2.03			1.53			5.54			4.36
Net interest margin on interest earning assets (2)		4.85	%		4.99	%		4.72	%		5.05	%		4.78	%
Return on average total assets (2)(3)		2.5	%		2.7	%		2.3	%		2.5	%		2.2	%
Return on average shareholders' equity (2)(3)(6)		24.4	%		27.5	%		24.0	%		24.2	%		24.8	%
No. of outstanding shares (millions)(4)		79.76			79.76			79.76			79.76			79.76

Quality of loan portfolio
Past due loans as a percentage of total loans		1.59	%		1.70	%		1.55	%		1.59	%		1.55	%
Reserves for loan losses as a percentage of
total past due loans		193.1	%		179.3	%		191.7	%		193.1	%		191.7	%
Reserves for loan losses as a percentage of
total loans		3.1	%		3.0	%		3.0	%		3.1	%		3.0	%

Operating efficiency
Oper. expenses as a percent. of total income (5)		39.4	%		39.6	%		39.8	%		40.3	%		41.4	%
Oper. expenses as a percent. of av. tot. assets(2)(3)(5)		3.5	%		3.6	%		3.5	%		3.6	%		3.6	%

Average balances (US$ million) (3)
Interest earning assets		22,400.67			20,720.69			18,172.09			20,468.68			18,245.46
Total assets		25,214.79			23,655.49			20,835.65			23,984.79			20,891.12
Net shareholder´s equity		2,561.19			2,358.81			2,031.43			2,430.95			1,855.05

(1) Based on Net Income attributed to BAP. Number of shares outstanding of 79.8 million in all periods.

(2) Ratios are annualized.

(3) Averages are determined as the average of period-beginning and period-ending balances.

(4) Net of treasury shares. The total number of shares was of 94.38 million.

(5) Total income includes net interest income, fee income, net gain on foreign exchange transactions and net premiums earned. Operating expenses do not include other expenses.

(6) ROAE (jan-sep): (Acumulated net income / average monthly equity (from dec. to date))/(number of months)*12

BANCO DE CREDITO DEL PERU AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(In US$ thousand, IFRS)

	As of									Change %
	Sep 10			Jun 10			Sep 09			QoQ			YoY
ASSETS
Cash and due from banks		3,720,491			3,342,067			3,368,733			11.3	%		10.4	%
Cash and BCRP		3,196,863			2,931,107			2,757,898			9.1	%		15.9	%
Deposits in other Banks		523,098			409,977			540,877			27.6	%		-3.3	%
Interbanks		-			-			68,132			0.0	%		-100.0	%
Accrued interest on cash and due from banks		530			983			1,826			-46.1	%		-71.0	%

Marketable securities, net		73,986			60,037			89,718			23.2	%		-17.5	%

Loans		13,326,601			12,611,066			10,572,063			5.7	%		26.1	%
Current		13,114,103			12,395,974			10,406,954			5.8	%		26.0	%
Past Due		212,498			215,092			165,109			-1.2	%		28.7	%
Less - net provisions for possible loan losses		(410,814	)		(386,148	)		(316,718	)		6.4	%		29.7	%
Loans, net		12,915,787			12,224,918			10,255,345			5.7	%		25.9	%

Investment securities available for sale		5,336,436			3,707,331			2,793,015			43.9	%		91.1	%
Property, plant and equipment, net		294,873			287,204			257,201			2.7	%		14.6	%
Due from customers acceptances		57,901			63,351			63,901			-8.6	%		-9.4	%
Other assets		1,074,535			1,184,152			1,052,317			-9.3	%		2.1	%

Total assets		23,474,009			20,869,060			17,880,230			12.5	%		31.3	%

LIABILITIES AND NET SHAREHOLDERS' EQUITY

Deposits and obligations		15,642,366			14,209,963			13,946,714			10.1	%		12.2	%
Demand deposits		5,257,055			5,059,051			4,298,914			3.9	%		22.3	%
Saving deposits		3,953,997			3,702,869			3,387,339			6.8	%		16.7	%
Time deposits		5,267,355			4,242,721			5,179,047			24.2	%		1.7	%
Severance indemnity deposits (CTS)		1,127,933			1,176,925			1,012,534			-4.2	%		11.4	%
Interest payable		36,026			28,397			68,880			26.9	%		-47.7	%

Due to banks and correspondents		3,181,057			3,110,545			603,152			2.3	%		427.4	%
Bonds and subordinated debt		2,004,124			1,202,434			941,027			66.7	%		113.0	%
Acceptances outstanding		57,901			63,351			63,901			-8.6	%		-9.4	%
Other liabilities		720,209			599,269			765,086			20.2	%		-5.9	%

Total liabilities		21,605,657			19,185,562			16,319,880			12.6	%		32.4	%

Net shareholders' equity		1,864,471			1,679,754			1,556,224			11.0	%		19.8	%
Capital stock		783,213			783,213			667,250			0.0	%		17.4	%
Reserves		388,309			388,309			388,275			0.0	%		0.0	%
Unrealized Gains and Losses		131,056			84,959			94,797			54.3	%		38.2	%
Retained Earnings		187,143			187,143			115,922			0.0	%		61.4	%
Income for the year		374,750			236,130			289,980			58.7	%		29.2	%

Minority interest		3,881			3,744			4,126			3.7	%		-5.9	%

Total liabilities and net shareholders' equity		23,474,009			20,869,060			17,880,230			12.5	%		31.3	%

Contingent credits		9,210,482			8,998,223			7,713,584			2.4	%		19.4	%

BANCO DE CREDITO DEL PERU AND SUBSIDIARIES

QUARTERLY INCOME STATEMENT

(In US$ thousand, IFRS)

	Quarter									Change %						Year to date						Change %
	3Q10			2Q10			3Q09			QoQ			YoY			Sep 10			Sep 09			Sep 10 / Sep 09
Interest income and expense
Interest and dividend income		345,937			311,548			292,292			11.0	%		18.4	%		963,407			909,494			5.9	%
Interest expense		(103,663	)		(82,896	)		(95,030	)		25.1	%		9.1	%		(273,306	)		(316,611	)		-13.7	%
Net interest and dividend income		242,274			228,652			197,262			6.0	%		22.8	%		690,101			592,883			16.4	%
Net provision for loan losses		(52,614	)		(31,183	)		(38,917	)		68.7	%		35.2	%		(127,242	)		(120,171	)		5.9	%

Non financial income
Banking services commissions		120,839			113,577			93,348			6.4	%		29.5	%		341,639			258,521			32.2	%
Net gain on foreign exchange transactions		26,354			23,595			25,559			11.7	%		3.1	%		75,452			65,587			15.0	%
Net gain on sales of securities		18,987			29,727			9,890			-36.1	%		92.0	%		48,875			92,164			-47.0	%
Other		1,168			2,642			892			-55.8	%		30.9	%		8,764			12,251			-28.5	%
Total non financial income,net		167,348			169,541			129,689			-1.3	%		29.0	%		474,730			428,523			10.8	%

Operating expenses
Salaries and employees benefits		(95,404	)		(90,961	)		(80,318	)		4.9	%		18.8	%		(284,810	)		(238,983	)		19.2	%
Administrative expenses		(67,549	)		(67,866	)		(59,269	)		-0.5	%		14.0	%		(201,200	)		(186,741	)		7.7	%
Depreciation and amortization		(17,392	)		(16,837	)		(14,712	)		3.3	%		18.2	%		(50,652	)		(42,556	)		19.0	%
Other		(4,406	)		(7,516	)		(6,794	)		-41.4	%		-35.1	%		(16,602	)		(27,493	)		-39.6	%
Total operating expenses		(184,751	)		(183,180	)		(161,093	)		0.9	%		14.7	%		(553,264	)		(495,773	)		11.6	%

Operating income		172,257			183,830			126,941			-6.3	%		35.7	%		484,325			405,462			19.5	%
Translation result		12,896			4,972			10,204			159.4	%		26.4	%		29,548			(4,955	)		696.3	%
Workers’ profit sharing		(6,699	)		(7,459	)		(4,842	)		-10.2	%		38.4	%		(18,998	)		(14,422	)		31.7	%
Income taxes		(39,683	)		(46,995	)		(30,558	)		-15.6	%		29.9	%		(119,584	)		(95,255	)		25.5	%
Minority interest		(151	)		(127	)		(289	)		18.9	%		-47.8	%		(541	)		(850	)		-36.4	%
Net income		138,620			134,221			101,456			3.3	%		36.6	%		374,750			289,980			29.2	%

BANCO DE CREDITO DEL PERU AND SUBSIDIARIES

SELECTED FINANCIAL INDICATORS

	Quarter									Year to date
	3Q10			2Q10			3Q09			Sep 10			Sep 09
Profitability
Net income per common share (US$ per share)(1)		0.062			0.060			0.046			0.168			0.130
Net interest margin on interest earning assets (2)		4.81	%		4.91	%		4.87	%		4.86	%		4.79	%
Return on average total assets (2)(3)		2.5	%		2.6	%		2.3	%		2.3	%		2.1	%
Return on average shareholders' equity (2)(3)		31.3	%		33.0	%		27.1	%		29.3	%		26.9	%
No. of outstanding shares (millions)		2,228.29			2,228.29			2,228.29			2,228.29			2,228.29

Quality of loan portfolio
Past due loans as a percentage of total loans		1.59	%		1.71	%		1.56	%		1.59	%		1.56	%
Reserves for loan losses as a percentage of
total past due loans		193.3	%		179.5	%		191.8	%		193.3	%		191.8	%
Reserves for loan losses as a percentage of
total loans		3.1	%		3.1	%		3.0	%		3.1	%		3.0	%

Operating efficiency
Oper. expenses as a percent. of total income (4)		46.3	%		48.0	%		48.8	%		48.5	%		51.1	%
Oper. expenses as a percent. of av. tot. assets(2)(3)(4)		3.3	%		3.4	%		3.4	%		3.3	%		3.4	%

Capital adequacy
Total Regulatory Capital (US$ million)		1,984.8			1,969.2			1,739.0
Tier I capital (US$ million)		1,561.0			1,514.9			1,289.4
BIS ratio (5)		13.9	%		13.6	%		14.5	%

Average balances (US$ million) (3)
Interest earning assets		20,147.4			18,643.6			16,203.5			18,942.9			16,497.2
Total Assets		22,171.5			20,761.4			18,033.8			21,665.6			18,197.2
Net shareholders' equity		1,772.1			1,629.1			1,499.5			1,707.6			1,437.0

(1) Shares outstanding of 2,228 million is used for all periods since shares have been issued only for capitalization of profits and inflation adjustment.

(2) Ratios are annualized.

(3) Averages are determined as the average of period-beginning and period-ending balances.

(4) Total income includes net interest income, fee income and net gain on foreign exchange transactions.

Operating expense includes personnel expenses, administrative expenses and depreciation and amortization.

(5) Regulatory Capital / risk-weighted assets. Risk weighted assets include market risk and operation risk

EL PACIFICO - PERUANO SUIZA and SUBSIDIARIES

(In US$ thousand)

	Balance to and for the period of
	Three month ending									Year to date						Change %
	30 Sep 10			30 Jun 10			30 Sep 09															Sep 10 /
	3Q10			2Q10			3Q09			Sep 10			Sep 09			QoQ			YoY			Sep 09
Results
Total Premiums		202,871			163,372			148,718			521,869			436,128			24.2	%		36.4	%		19.7	%
Ceded Premiums		37,986			17,748			19,637			81,002			66,775			114.0	%		93.4	%		21.3	%
Unearned premium reserves		40,675			20,204			16,341			76,040			48,985			101.3	%		148.9	%		55.2	%
Net earned premiums		124,210			125,420			112,740			364,827			320,368			-1.0	%		10.2	%		13.9	%
Direct claims		79,716			76,990			57,091			251,550			243,485			3.5	%		39.6	%		3.3	%
Ceded claims		3,233			932			(15,856	)		20,467			27,106			246.8	%		120.4	%		-24.5	%
Net claims		76,483			76,058			72,947			231,083			216,380			0.6	%		4.8	%		6.8	%
Direct commissions		21,709			19,901			17,029			59,757			51,169			9.1	%		27.5	%		16.8	%
Commissions received		3,212			2,766			2,420			8,397			7,170			16.1	%		32.7	%		17.1	%
Net commissions		18,497			17,135			14,609			51,359			43,999			7.9	%		26.6	%		16.7	%
Technical expenses		7,556			6,437			6,099			20,658			17,509			17.4	%		23.9	%		18.0	%
Technical resolves		2,531			1,962			3,549			7,397			8,453			29.0	%		-28.7	%		-12.5	%
Net technical expenses		5,025			4,475			2,550			13,261			9,056			12.3	%		97.1	%		46.4	%
Underwriting results		24,205			27,753			22,634			69,124			50,934			-12.8	%		6.9	%		35.7	%

Financial income		17,766			17,690			15,774			53,254			45,428			0.4	%		12.6	%		17.2	%
Gains on sale of real state and secutirities		5,768			3,372			4,122			12,223			9,910			71.0	%		39.9	%		23.3	%
Net property and rental income		1,117			1,150			1,136			3,453			2,879			-2.8	%		-1.6	%		19.9	%
(-) Financial expenses		(621	)		1,295			412			1,148			1,524			-147.9	%		-250.7	%		-24.7	%
Financial income, net		25,272			20,917			20,620			67,781			56,693			20.8	%		22.6	%		19.6	%

Salaries and benefits		14,768			13,995			11,752			41,774			32,454			5.5	%		25.7	%		28.7	%
Administrative expenses		14,593			11,126			11,117			35,639			27,649			31.2	%		31.3	%		28.9	%
Third party services		6,841			5,357			4,531			17,017			12,767			27.7	%		51.0	%		33.3	%
Management expenses		2,544			2,285			1,602			7,032			5,111			11.3	%		58.7	%		37.6	%
Provisions		1,796			1,609			1,751			4,900			4,259			11.6	%		2.6	%		15.0	%
Taxes		1,384			1,120			1,382			3,960			3,744			23.6	%		0.2	%		5.8	%
Other expenses		2,029			755			1,851			2,730			1,767			168.7	%		9.6	%		54.5	%
General expenses		29,360			25,121			22,869			77,413			60,103			16.9	%		28.4	%		28.8	%

Other income		20			343			(92	)		574			832			-94.3	%		121.3	%		-31.1	%
Traslations results		1,516			529			1,879			3,049			4,092			186.8	%		-19.3	%		-25.5	%
Employee participation and income tax		5,267			3,959			6,282			11,225			11,025			33.0	%		-16.2	%		1.8	%

Income before minority interest		16,386			20,461			15,890			51,890			41,423			-19.9	%		3.1	%		25.3	%
Minority interest		2,645			3,985			2,613			9,579			8,514			-33.6	%		1.2	%		12.5	%

Net income		13,741			16,475			13,277			42,311			32,909			-16.6	%		3.5	%		28.6	%

Balance (end of period)

Total Assets		1,739,047			1,591,564			1,476,861			1,739,047			1,476,861			147,483			262,186			262,186
Invesment on securities and real state (1)		1,259,896			1,133,861			1,026,507			1,259,896			1,026,507			126,035			233,389			233,389
Technical reserves		1,126,039			1,079,531			1,016,054			1,126,039			1,016,054			46,508			109,985			109,985
Net equity		338,320			288,277			242,243			338,320			242,243			50,042			96,077			96,077

Ratios

Ceded		18.7	%		10.9	%		13.2	%		15.5	%		15.3	%
Gross loss ratio		39.3	%		47.1	%		38.4	%		48.2	%		55.8	%
Loss ratio		61.6	%		60.6	%		64.7	%		63.3	%		67.5	%
Acquisition costs/ earned premium		14.9	%		13.7	%		13.0	%		14.1	%		13.7	%
Commissions + technical expenses, net / net earned premiums		18.9	%		17.2	%		15.2	%		17.7	%		16.6	%
Underwriting results / total premium		11.9	%		17.0	%		15.2	%		13.2	%		11.7	%
Underwriting results / net earned premiums		19.5	%		22.1	%		20.1	%		18.9	%		15.9	%
General expenses / net earned premiums		23.6	%		20.0	%		20.3	%		21.2	%		18.8	%
Net income / total premiums		6.8	%		10.1	%		8.9	%		8.1	%		7.5	%
Return on equity (2)(3)		18.7	%		25.8	%		26.6	%		19.1	%		18.7	%
Return on total premiums		6.8	%		10.1	%		8.9	%		8.1	%		7.5	%
Net equity / total assets		19.5	%		18.1	%		16.4	%		19.5	%		16.4	%
Increase in technical reserves		24.7	%		13.9	%		12.7	%		17.2	%		13.3	%
General expenses / assets (2)(3)		7.2	%		6.6	%		6.5	%		6.4	%		6.5	%

Combined ratio of PPS + PS (4)		93.8	%		92.0	%		95.2	%		94.0	%		97.8	%
Net claims / net earned premiums		58.2	%		60.9	%		65.6	%		61.2	%		69.6	%
General expenses and commissions / net earned premiums		35.6	%		31.1	%		29.6	%		32.8	%		28.2	%

(1) Real state investment were excluded

(2) Annualized

(3) Average are determined as the average of period - begging and period ending

(4) Without consolidated adjusments

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 12, 2010


	CREDICORP LTD.


	By:	/s/ Giuliana Cuzquen
		Giuliana Cuzquen
		Authorized Representative