THIRD
QUARTER 1996
Credicorp
Ltd. Announces Financial Results For The Quarter Ended September 30, 1996
(Lima, Peru, October 30, 1996) - Credicorp, Ltd. ("Credicorp") (NYSE:BAP;LSE:BAPC1) today announced its financial results for the quarter ended September 30, 1996.
Credicorp announced net profits of US$31.9 million for the third quarter of 1996, representing an increase of 4.3% over US$30.6 million reported in the second quarter 1996. For the quarter ended September 30, 1996, Credicorp had earnings per share of US$0.52 based on 61.3 million net outstanding shares (which includes the share dividend of March 1996 and excludes 10.2 million shares held by subsidiaries).
Credicorp which owns Banco de Crédito del Peru (BCP), El Pacifico-Peruano Suiza Cia. de Seguros y Reaseguros (PPS) and Atlantic Security Holding Corporation (ASHC), was established through an exchange of shares carried out in October 1995 whereby, respectively, 90.1%, 75.8% and 98.2% of the aforementioned companies were acquired. Subsequently, in accordance with Cayman Islands corporate law, Credicorp acquired the remaining outstanding ASHC shares which, as of March 19,1996, brought Credicorp’s ownership of ASHC to 100%. Credicorp also owns 100% of Inversiones Crédito, a holding company with US$38.9 million in assets, with 40% interest in AFP Union and in other non-financial business companies.
In an effort to facilitate quarter -over- quarter comparisons, consolidated financial statements as of September 30, 1995 have been prepared, on a pro-forma basis, as if Credicorp had been operational since January 1994.
Credicorp’s consolidated financial statements for the third quarter of 1996, are summarized as follows:
Net income of US$31.9 million representing an increase of 16.1% compared to US$27.5 million earned during the third quarter of 1995.
For the first nine months of 1996, net income was US$90.1 million increasing 24.8% over results of US$72.2 million for the same period in 1995.
Net profits for the third quarter 1996 represents a 20.7% return on net average shareholder’s equity ("ROE") on an annualized basis versus a 21.2% ROE for the same period in 1995.
The annualized return on average assets ("ROA") was 2.2% in the third quarter 1996, versus 2.3% over the same period in 1995.
The increase in net profits compared to the third quarter of 1995 is primarily attributable to growth in the volume of banking operations resulting in increased net interest income. Such increase was partially offset by higher provisions for possible loan losses, lower growth in non-interest income and by increases in operating expenses.
| Credicorp
Ltd. and Subsidiaries Summary of Results (In U.S.$ millions, except net income per share) |
||
| xxx | Three months ended September 30, | |
| 1995 | 1996 | |
| Proforma(1) | Actual | |
| Net interest income | 65.6 | 78.9 |
| Provisions for possible loan losses, net | 2.7 | 13.3 |
| Other income | 60.4 | 70.2 |
| Claims on insurance activities | 13.3 | 16.4 |
| Operating expense | 66.9 | 76.7 |
| Income before income tax and result | ||
| from exposure to inflation | 43.1 | 42.8 |
| Income Tax | 13.9 | 10.9 |
| Net Income | 27.5 | 31.9 |
| Net Income per share (2) | 0.449 | 0.521 |
(1) Estimated
financial statements prepared as if Credicorp began operating in January
1994.
(2) Based
on 61.3 million outstanding shares in both periods. Following a share
dividend in March 1996, the total number of shares outstanding increased
to 71.5 million. However, as 10.2 million are held by affiliates, as of
June 30, 1996 there were 61.3 million net shares outstanding, increasing
from 52.0 million net shares outstanding before the dividend.
