SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

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

Securities Exchange Act of 1934

For the month of February 2022

Commission File Number: 001-14014

CREDICORP LTD.

(Translation of registrant’s name into English)

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 of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

 Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

---

SIGNATURE

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

Date: February 7^th, 2022

Fourth Quarter Results

 

 

According to the latest official information, economic activity reported growth of 3.5% YoY in November, result that represented an increase of 1.3% with regard to the figure reported in November 2019. Thus, GDP growth is estimated to stand at 3.3% YoY in 4Q21 and 13% in 2021 with regard to 2020. This recovery was driven mainly by the reopening of the economy; ample monetary and fiscal stimulus; mandates to release pension and severance indemnity funds; and a favorable international environment for our export products. In addition, the sanitary situation has improved as a result of the vaccination program, through which 84% of the population older than 12 has received least two doses.

 

Loan Growth

		QoQ growth in loans was primarily driven by the positive evolution of the structural portfolio in Retail Banking at BCP Stand-alone, which was offset by the drop in the Portfolio of Government Programs (GP).
		YoY growth was attributable, to a large extent, the exchange rate effect and to an uptick in loan disbursements in Wholesale Banking at BCP Stand-alone.
Net interest income and Margin
		NII and NIM increased QoQ, in line with growth in structural loans. This was offset by the increase in the funding cost due to higher market rates and a substitution in the funding mix, where institutional funding replaced funding from government programs.
		NII and NIM increased YoY, in line with structural loans growth, low-cost deposits growth, and liability management transactions that reduced the cost of subordinated debt at BCP Stand-alone.
		FY, the NII grew due to significant reduction in interest expenses. NIM in 2021 fell in a context of a YoY drop in active interest rates compared to 2020.
Provisions and Portfolio Quality
		Provisions in 4Q21 fell QoQ and YoY, which reflected good payment performance; lower probabilities of default in SME segment and higher write-offs in Mibanco. This result was partially offset the evolution of NPL loans in Wholesale Banking. FY, the significant drop in provisions was attributable to economic reactivation, positive payment behavior, and a reduction in the volumes of riskier portfolios.
		The NPL ratio remained stable QoQ. If we exclude government loans from the calculation base, the structural NPL ratio fell 35 basis points QoQ. This result was primarily driven by an improvement in payment behavior at Mibanco and by loans growth at BCP Stand-alone. In YoY terms, the uptick in ratio reflected the pandemic’s effect on GP loans.
Core Other income
		Core Other Income rose, which was mainly spurred by an increase in fee income at BCP. This evolution was driven by growth in transactions in a context of economic reactivation and new services in our digital channels. FX transactions registered an uptick in gains in a context of market volatility. YoY and on a FY basis, the results follow the same trend as that seen in the QoQ analysis.

Other income
		QoQ and on a FY basis, Other Income grew in line with the increase in Core Other Income. YoY evolution, growth in core income was offset by higher losses fixed-income trading portfolio during 4Q21.

Insurance Underwriting Result

 

In 4Q21, the insurance underwriting result returned to pre-pandemic levels and grew 81.8% QoQ, driven by an increase in net earned premiums in the Life and P&C businesses and by a decrease in claims in P&C. YoY, growth stood at 50.4%, fueled primarily by an increase in net earned premiums in both businesses, and to a lesser extent, a decrease in claims in the Life business. In FY analysis, losses were recorded in 2021 due to growth in claims in the Life Business in the context of the pandemic.

 

Operating Efficiency

 

The efficiency ratio stood at 49.5% in 4Q21, which reflected a deterioration of 340bps QoQ and 230bps YoY. This evolution was attributable to growth in expenses for digital transformation and disruptive initiatives at BCP Stand-alone and to an increase in variable compensation at the majority of companies. FY, the ratio in 2021 stood at 45.9%, which is 40bps below the figure in 2020. This evolution was primarily due to improvements in efficiency at Mibanco, which offset higher expenses at BCP Stand-alone.

Net income at Credicorp and Contribution by Business Line

Contribution* and ROAE by subsidiary in 4Q21 (S/ million)

 

Credicorp Net Income 4Q21 S/1,061 million, ROAE 16.4%

*Contributions to Credicorp reflect the eliminations for consolidation purposes (eliminations for transactions among Credicorp’s subsidiaries or between Credicorp and its subsidiaries).

- In Mibanco, the figure is lower than the net income because Credicorp owns 99.921% of Mibanco (directly and indirectly). ROAE including goodwill of BCP from the acquisition of Edyficar (Approximately US$ 50.7 million) was 4.5% in 4Q20, 13.2% in 3Q21 and 19.7% in 4Q21. FY was -17.8% for December 2020 and 11.5% for December 2021.

- In Grupo Pacifico, the contribution is higher than the net income because Credicorp owns 65.20% directly, and 33.57% through Grupo Credito. Figures include unrealized gains or losses that are considered in Pacifico’s Net Equity from the investment portfolio of Pacifico Vida. ROAE excluding such unrealized gains was 1.5% in 4Q20, 13.3% in 3Q21 and 12.6% in 4Q21. FY was 8.2% for December 2020 and -6.4% for December 2021.

- Others includes Grupo Credito excluding Prima (Servicorp and Emisiones BCP Latam), others of Atlantic Security Holding Corporation and others of Credicorp Ltd.

Overview Financial Information: Fourth Quarter 2021

Credicorp Ltd.		Quarter												% change								Year								% change
S/ 000			4Q20				3Q21				4Q21				QoQ				YoY				2020				2021				2021 / 2020
Net interest, similar income and expenses			2,068,560				2,451,708				2,477,847				1.1	%			19.8	%			8,571,342				9,361,980				9.2	%
Provision for credit losses on loan portfolio, net of  recoveries			(732,665	)			(164,414	)			(126,782	)			-22.9	%			-82.7	%			(5,920,508	)			(1,212,223	)			-79.5	%
Net interest, similar income and expenses, after provision for credit losses on loan portfolio			1,335,895				2,287,294				2,351,065				2.8	%			76.0	%			2,650,834				8,149,757				207.4	%
Total other income			1,329,533				1,238,683				1,301,959				5.1	%			-2.1	%			4,406,217				4,926,866				11.8	%
Insurance underwriting result			84,867				70,204				127,657				81.8	%			50.4	%			358,133				(3,721	)		n.a
Total other expenses			(1,981,310	)			(1,977,794	)			(2,221,574	)			12.3	%			12.1	%			(7,191,023	)			(7,740,086	)			7.6	%
Profit (loss) before income tax			768,985				1,618,387				1,559,107				-3.7	%			102.7	%			224,161				5,332,816				2279.0	%
Income tax			(103,174	)			(428,037	)			(471,860	)			10.2	%			357.3	%			109,977				(1,660,987	)		n.a
Net profit (loss)			665,811				1,190,350				1,087,247				-8.7	%			63.3	%			334,138				3,671,829				998.9	%
Non-controlling interest			12,407				26,651				26,631				-0.1	%			114.6	%			(12,756	)			87,247			n.a
Net profit (loss) attributable to Credicorp			653,404				1,163,699				1,060,616				-8.9	%			62.3	%			346,894				3,584,582				933.3	%
Net profit (loss) / share (S/)			8.19				14.59				13.30				-8.9	%			62.3	%			4.35				44.94				933.3	%
Loans			137,659,885				146,551,226				147,597,412				0.7	%			7.2	%			137,659,885				147,597,412				7.2	%
Deposits and obligations			142,365,502				152,548,368				150,340,862				-1.4	%			5.6	%			142,365,502				150,340,862				5.6	%
Net equity			24,945,870				25,192,569				26,496,767				5.2	%			6.2	%			24,945,870				26,496,767				6.2	%
Profitability
Net interest margin			3.73	%			4.23	%			4.25	%		2 bps				52 bps					4.30	%			4.10	%		-20 bps
Risk-adjusted Net interest margin			2.41	%			3.95	%			4.04	%		9 bps				163 bps					1.33	%			3.57	%		224 bps
Funding cost			1.34	%			1.21	%			1.24	%		3 bps				-10 bps					1.78	%			1.29	%		-49 bps
ROAE			10.8	%			18.5	%			16.4	%		-210 bps				560 bps					1.4	%			13.9	%		1250 bps
ROAA			1.1	%			1.9	%			1.7	%		-20 bps				60 bps					0.2	%			1.5	%		130 bps
Loan portfolio quality
Internal overdue ratio (1)			3.40	%			3.73	%			3.76	%		3 bps				36 bps					3.40	%			3.76	%		36 bps
Internal overdue ratio over 90 days			2.69	%			2.76	%			2.85	%		9 bps				16 bps					2.69	%			2.85	%		16 bps
NPL ratio (2)			4.61	%			4.96	%			4.98	%		2 bps				37 bps					4.61	%			4.97	%		36 bps
Cost of risk (3)			2.13	%			0.45	%			0.34	%		-11 bps				-179 bps					4.30	%			0.82	%		-348 bps
Coverage ratio of IOLs			211.7	%			165.8	%			152.7	%		-1310 bps				-5900 bps					211.7	%			152.9	%		-5880 bps
Coverage ratio of NPLs			156.1	%			124.8	%			115.3	%		-950 bps				-4080 bps					156.1	%			115.5	%		-4060 bps
Operating efficiency
Efficiency ratio (4)			47.2	%			46.1	%			49.5	%		340 bps				230 bps					46.3	%			45.9	%		-40 bps
Operating expenses / Total average assets			3.05	%			3.20	%			3.52	%		32 bps				47 bps					3.19	%			3.19	%		0 bps
Insurance ratios
Combined ratio of P&C (5) (6)			81.4	%			94.1	%			86.5	%		-760 bps				510 bps					81.4	%			86.5	%		510 bps
Loss ratio (6)			75.4	%			76.5	%			71.3	%		-520 bps				-410 bps					68.5	%			93.1	%		2460 bps
Capital adequacy - BCP Stand-alone (7)
Global Capital ratio (8)			14.93	%			15.16	%			14.94	%		-22 bps				1 bps					14.93	%			14.94	%		1 bps
Tier 1 ratio (9)			10.41	%			10.00	%			9.94	%		-6 bps				-47 bps					10.41	%			9.94	%		-47 bps
Common equity tier 1 ratio (10)			11.40	%			11.10	%			11.84	%		74 bps				44 bps					11.40	%			11.84	%		44 bps
Capital adequacy - Mibanco (7)
Global Capital ratio (8)			19.82	%			16.74	%			16.36	%		-38 bps				-346 bps					19.82	%			16.36	%		-346 bps
Tier 1 ratio (9)			17.67	%			14.25	%			13.93	%		-32 bps				-374 bps					17.67	%			13.93	%		-374 bps
Common equity tier 1 ratio (10)			17.70	%			15.10	%			14.85	%		-25 bps				-285 bps					17.70	%			14.85	%		-285 bps
Employees			36,806				35,733				36,358				1.7	%			-1.2	%			36,806				36,358				-1.2	%
Share Information
Issued Shares			94,382				94,382				94,382				0.0	%			0.0	%			94,382				94,382				0.0	%
Treasury Shares (11)			14,915				14,866				14,850				-0.1	%			-0.4	%			14,915				14,866				-0.3	%
Outstanding Shares			79,467				79,516				79,532				0.0	%			0.1	%			79,467				79,516				0.1	%

(1) Internal overdue loans includes overdue loans and loans under legal collection, according to our internal policy for overdue loans. Internal Overdue ratio: Internal overdue loans / Total loans.

(2) Non-performing loans (NPL): Internal overdue loans + Refinanced loans. NPL ratio: NPL / Total loans.

(3) Cost of risk: Annualized provision for loan losses, net of recoveries / Total loans.

(4) Efficiency ratio = (Salaries and employee benefits + Administrative expenses + Depreciation and amortization + Association in participation + Acquisition cost) / (Net interest, similar income and expenses + Fee Income + Net gain on foreign exchange transaction + Net Gain From associates + Net gain on derivatives held for trading + Result on exchange differences + Net Premiums Earned).

(5) Combined ratio = (Net claims / Net earned premiums) + [(Acquisition cost + Operating expenses) / Net earned premiums]. Does not include Life insurance business.

(6) Considers Grupo Pacifico's figures before eliminations for consolidation to Credicorp.

(7) All Capital ratios for BCP Stand-alone and Mibanco are based on Peru GAAP.

(8) Regulatory Capital / Risk-weighted assets (legal minimum = 10% since July 2011).

(9) Tier 1 = Capital + Legal and other capital reserves + Accumulated earnings with capitalization agreement + (0.5 x Unrealized profit and net income in subsidiaries) - Goodwill - (0.5 x Investment in subsidiaries) + Perpetual subordinated debt (maximum amount that can be included is 17.65% of Capital + Reserves + Accumulated earnings with capitalization agreement + Unrealized profit and net income in subsidiaries - Goodwill).

(10) Common Equity Tier I = Capital + Reserves – 100% of applicable deductions (investment in subsidiaries, goodwill, intangibles and net deferred taxes that rely on future profitability) + retained earnings + unrealized gains.

Adjusted Risk-Weighted Assets = Risk-weighted assets - (RWA Intangible assets, excluding goodwill, + RWA Deferred tax assets generated as a result of temporary differences in income tax, in excess of 10% of CET1, + RWA Deferred tax assets generated as a result of past losses)."

(11) These shares are held by Atlantic Security Holding Corporation (ASHC) and for shared based payments.

1.1. Structure and Evolution of IEA

QoQ, investments registered an increase in their share of IEAs while the share of liquid assets fell. The inverse occurred YoY, given that the share of investments fell while the share of liquid assets increased.

Loans (quarter-end balances)

It is important to note that loan evolution in recent quarters has been affected by exchange rate volatility and by the progressive decline in GP balances.

QoQ, total loans increased +0.7% and structural loans +2.7%; both metrics were affected by the -3.6% decrease in the exchange rate. If we exclude the exchange rate effect, total loans grew +2.0% QoQ and structural loans, 4.2%. This reflected:

GP loans fell -11.2% QoQ.

¹ Includes Cash and Due from Banks; Interbank Funds; Cash Collateral, reverse repurchase agreements, and securities borrowings, and Financial Assets designated at fair value through profit or loss.

9

---

GP loans fell -24.2% YoY.

Total Investments		As of													% change
S/ 000			Dec 20				Sep 21				Dec 21				QoQ				YoY
Fair value through profit or loss investments			6,467,471				6,661,600				5,928,497				-11.0	%			-8.3	%
Fair value through other comprehensive income investments			43,743,889				33,261,505				34,758,443				4.5	%			-20.5	%
Amortized cost investments			4,962,382				8,187,351				8,265,559				1.0	%			66.6	%
Total investments			55,173,742				48,110,456				48,952,499				1.8	%			-11.3	%

1.2.	Credicorp Loans

1.2.1.

Evolution of average daily balances (ADB)

		TOTAL LOANS
		Expressed in million S/												Structural												% change								% change Structural								% Part. in total loans												Structural
			4Q20				3Q21				4Q21				4Q20				3Q21				4Q21			QoQ				YoY				QoQ				YoY					4Q20				3Q21				4Q21				4Q21
BCP Stand-alone			112,981				120,722				119,100				91,075				101,482				101,729				-1.3	%			5.4	%			0.2	%			11.7	%			82.4	%			82.5	%			82.1	%			81.2	%
Wholesale Banking			51,675				57,831				56,359				44,988				53,048				52,289				-2.5	%			9.1	%			-1.4	%			16.2	%			37.7	%			39.5	%			38.8	%			41.7	%
Corporate			28,522				32,610				31,851				27,771				32,115				31,426				-2.3	%			11.7	%			-2.1	%			13.2	%			20.8	%			22.3	%			22.0	%			25.1	%
Middle - Market			23,153				25,221				24,508				17,216				20,933				20,864				-2.8	%			5.9	%			-0.3	%			21.2	%			16.9	%			17.2	%			16.9	%			16.6	%
Retail Banking			61,306				62,891				62,741				46,088				48,434				49,439				-0.2	%			2.3	%			2.1	%			7.3	%			44.7	%			43.0	%			43.2	%			39.4	%
SME - Business			10,893				11,400				10,484				4,652				5,524				5,302				-8.0	%			-3.8	%			-4.0	%			14.0	%			7.9	%			7.8	%			7.2	%			4.2	%
SME - Pyme			19,239				19,626				19,717				10,262				11,046				11,597				0.5	%			2.5	%			5.0	%			13.0	%			14.0	%			13.4	%			13.6	%			9.3	%
Mortgage			17,218				18,133				18,432				17,218				18,133				18,432				1.6	%			7.1	%			1.6	%			7.1	%			12.6	%			12.4	%			12.7	%			14.7	%
Consumer			9,544				10,000				10,296				9,544				10,000				10,296				3.0	%			7.9	%			3.0	%			7.9	%			7.0	%			6.8	%			7.1	%			8.2	%
Credit Card			4,412				3,731				3,813				4,412				3,731				3,813				2.2	%			-13.6	%			2.2	%			-13.6	%			3.2	%			2.5	%			2.6	%			3.0	%
Mibanco			12,679				13,083				13,352				9,865				10,429				10,990				2.1	%			5.3	%			5.4	%			11.4	%			9.2	%			8.9	%			9.2	%			8.8	%
Mibanco Colombia			866				1,047				1,064				866				1,047				1,064				1.6	%			22.9	%			1.6	%			22.9	%			0.6	%			0.7	%			0.7	%			0.8	%
Bolivia			8,272				9,408				9,230				8,272				9,408				9,230				-1.9	%			11.6	%			-1.9	%			11.6	%			6.0	%			6.4	%			6.4	%			7.4	%
ASB			2,342				2,130				2,327				2,342				2,130				2,327				9.2	%			-0.6	%			9.2	%			-0.6	%			1.7	%			1.5	%			1.6	%			1.9	%
BAP's total loans			137,140				146,389				145,073				112,420				124,496				125,339				-0.9	%			5.8	%			0.7	%			11.5	%			100.0	%			100.0	%			100.0	%			100.0	%

(i)

Growth in the Retail Banking portfolio where the SME-Pyme segment led expansion, followed by Mortgage and Consumer. The Credit Card segment reversed its downward trend for the first time since the beginning of the pandemic. These dynamics were driven by economic reactivation, a loosening of sanitary restrictions, and the seasonal effect of an uptick in business activity and private consumption at year-end.

(ii)

Growth at Mibanco, where disbursements hit a record high, was also noteworthy this quarter. Mibanco Colombia also contributed to expansion through higher-than-expected commercial results. The company continues to gain market share in the microfinance industry in Colombia.

(iii)

Wholesale Banking registered a decrease in its structural loan balances.

(i)

Growth in Wholesale Banking, which registered an uptick in disbursements in 2021 due to reactivation of internal demand and campaigns for specific sectors and clients.

(ii)

Growth in the Retail Banking portfolio, which was led by SME-Pyme, followed by Mortgage, Consumer and SME-Business. Dynamism in Retail Banking was partially offset by a decrease in Credit Card balances after clients used funds from economic relief measures to reduce debt in this segment.

(iii)

Growth in Mibanco loans, which was bolstered by on-going growth in disbursements. In 3Q21, disbursements at Mibanco Peru surpassed pre-pandemic levels and in 4Q21, they hit record highs. At Mibanco Colombia, the portfolio grew more than 10% YoY. This expansion was driven by dynamism in the industry sector and by an improvement in the company’s productivity levels, which was coupled with an increase in commercial capacities.

(i)

A drop in the Wholesale Banking Portfolio, which was primarily visible in the Corporate Banking segment. This decline was driven by the fact that companies had fewer financial needs given that they had already shored up liquidity at the beginning of the pandemic. In Middle Market Banking, a decrease in the demand for loans reflected the fact that this segment benefitted amply from government financial relief programs and had fewer financial needs.

(ii)

Within Retail Banking, the drop in the Credit Card segment was noteworthy. A decrease in the risk appetite in this segment, and the fact that clients used heightened liquidity to amortize their credit debt, contributed to this decline.

(iii)

The retail segments: SME-Pyme, Mortgage and Consumer evolved positively.

Deposits		As of											% change
S/ 000			Dec 20				Sep 21				Dec 21				QoQ				YoY
Demand deposits			54,530,356				61,112,084				58,629,661				-4.1	%			7.5	%
Saving deposits			50,069,129				54,365,781				56,945,262				4.7	%			13.7	%
Time deposits			29,324,090				31,601,351				29,995,810				-5.1	%			2.3	%
Severance indemnity deposits			7,736,747				4,681,224				4,017,065				-14.2	%			-48.1	%
Interest payable			705,180				787,928				753,064				-4.4	%			6.8	%
Total Deposits			142,365,502				152,548,368				150,340,862				-1.4	%			5.6	%

(i)

The drop in demand deposits, which fell -4.1% (-2.0% if we exclude the exchange rate effect), was driven mainly by a decrease in current accounts in LC held by corporate clients and, to a lesser extent, by current accounts held by retail banking clients. The aforementioned reduction in retail accounts reflected clients’ use of funds from AFPs.

(ii)

A -5.1% decline in time deposits (-3.1% if we exclude the exchange rate effect). This drop was mainly driven by BCP Stand-alone in Corporate Banking.

(iii)

A significant drop in Severance Indemnity Deposits, which was driven by a government mandate that freed up these funds for withdrawal until the last day of 2021; this was slightly mitigated by inflows of severance indemnity deposits, which are made in November every year.

(iv)

Growth in savings deposits particularly at BCP Stand-alone, which grew +4.7% QoQ (6.4% if we exclude the exchange rate effect). This growth was mainly spurred from higher levels of savings by individuals, associated with bonus payments in the month of December.

Deposits by type and currency

(measured in quarter-end balances)

2.3. Other sources of funding

The total of Other sources of funding fell -3.9% QoQ. If we exclude the exchange rate effect, the reduction stands at -2.5%.  This evolution reflects:

The drop registered in BCRP Instruments, which was mainly driven by BCP Stand-alone in a context of Reactiva loan amortizations.

The decrease in Bonds and Issued Notes, which was primarily attributable to the expiration of corporate bonds in LC and of a subordinated note in FC at BCP Stand-alone. This item was also affected, although to a lesser degree, by the exchange rate effect because 78% of the total balance is in FC.

17

---

The decrease in Due to banks and correspondents, which was driven by a decrease in debt obligations at BCP Stand-alone after instruments held with foreign financial institutions in FC expired.

In the YoY evolution, a -7.8% decreased was registered; this was primarily attributable to a drop in the balance of BCRP Instruments at BCP Stand-alone, which was impacted by progressive amortizations of Reactiva loans. The aforementioned was partially offset by a variation in the exchange rate given that a high percentage of total debt is in FC.

2.4. Loans / Deposits (L/D)

Loan / Deposit ratio by subsidiary

In the QoQ analysis by currency, slight growth was registered in the L/D ratio in LC ratio at Credicorp, BCP Individual and Mibanco. The L/D ratio in FC fell slightly a Credicorp, BCP Individual and Mibanco. YoY, the L/D ratio in LC fell at Credicorp, BCP and Mibanco. Growth in loans at Mibanco was driven by record-high disbursement levels in 4Q21. During the same period, a decrease was reported for the L/D ratio in FC for l Credicorp, BCP and Mibanco.

18

---

2.5. Funding Cost

 

Funding Cost – Credicorp ⁽¹⁾

 

(1) Structural Funding Cost deducts the impact in expenses and funding related to GP Loans (BCRP Repos) and deducts non-recurring events from Interest Expenses

Credicorp’s funding cost in the fourth quarter remained low and stood at 1.24% (+3bps QoQ) in a context of strong growth in interest rates and an increase in the share of low-cost deposits in the funding mix. Th structural funding cost, which excludes the effects of funding generated by Reactiva loans and other non-recurring funding expenses, rose slightly to 1.31% (+4bps QoQ).

In the YoY analysis, the Cost of funding in the fourth quarter fell -10 pbs, which was primarily driven by an increase in the share of low-cost deposits in the funding mix.

In the FY analysis, the funding cost in 2021 fell -49 bps with regard to last year’s figure. This was triggered primarily by an increase in the share of low-cost deposits in the funding mix and by the execution of liability management transactions.

Funding Cost – Credicorp In Local Currency ⁽¹⁾

 

(1) Structural Funding Cost deducts the impact in expenses and funding related to GP Loans (BCRP Repos) and deducts non-recurring events from Interest Expenses

The cost of funding in LC increased 16 bps. This dynamic was driven by withdrawals from demand and time deposits in LC and by an increase in interest rates. With regard to structural funding, the funding cost in LC rose to 1.33% in 4Q21 (+20 bps).

(i)

The funding cost at BCP Stand-alone increased slightly to 0.98% (+3 bps QoQ). YoY, a decrease of -9 bps was reported in the cost of funding. This was associated with (i) an uptick in the share of deposits and (ii) the rate effect, which was primarily generated by a subordinated debt management transaction.

(ii)

The funding cost at Mibanco increased considerably (+29 bps QoQ), which was attributable to repricing of the institutional funding base due to an increase in interest rates. In the YoY analysis, a drop of -50 bps was recorded. This result was mainly driven by an uptick in institutional banking’s share of the funding mix (this type of funding is less expenses than retail funding).

21

---

3. Net interest income (NII)