Q4 2025 Credicorp Ltd Earnings Call

February 13, 2026

Speaker #1: Good morning, everyone. I would like to welcome you to the CREDICORP LTD 4th Quarter 2025 Conference Call. A slide presentation will accompany today's webcast, which is available in the Investor section of CREDICORP's website.

Speaker #1: Today's conference call is being recorded. As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation.

Speaker #1: If you would like to ask a question, please signal by pressing *1 on your telephone keypad. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen.

Speaker #1: If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Now, it is my pleasure to turn the conference over to CREDICORP's IRO, Milagros Sigüenas.

Speaker #1: You may begin.

Milagros Cigüeñas: You may begin.

Operator: You may begin.

Speaker #2: Thank you and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Perez Reyes, our Chief Financial Officer.

Milagros Cigüeñas: Thank you, and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Pérez-Reyes, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer, Cesar Rios, Chief Risk Officer, Eduardo Montero, Head of Insurance and Pension, and Rocío Narvínez, Mibanco Chief Financial Officer. Before we proceed, I would like to make the following. And sorry, and also here in the Q&A session, it will be Diego Cavero, BCP CEO or Head of Universal Banking. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties, and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC.

Speaker #2: Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer, César Ríos, Chief Risk Officer, Eduardo Montero, Head of Insurance and Pensions, and Rocío Benavides, Mi Banco Chief Financial Officer.

Speaker #2: Before we proceed, I would like to make the following—sorry—and also hear in the Q&A session will be Diego Cabrero, VCP CEO, or Head of Universal Banking.

Speaker #2: Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC.

Speaker #2: We assume no obligation to update or revise any forward-looking statements, or to reflect new or changed events or circumstances. Gianfranco Ferrari will begin the call with remarks on key strategic highlights for the year 2025, our recent macro environment, and a brief overview of our quarterly results.

Milagros Cigüeñas: We assume no obligation to update or revise any forward-looking statements or reflect new or changed events or circumstances. Gianfranco Ferrari will begin the call with remarks on key strategic highlights over the year 2025, our recent macro environment, and a brief overview of our quarterly results, followed by Alejandro Pérez-Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for 2026. Gianfranco, please go ahead.

Speaker #2: Followed by Alejandro Perez Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for 2026. Gianfranco, please go ahead.

Speaker #3: Thank you, Milagros, and good morning, everyone. We close 2025 on a very solid footing, entering the new year in a stronger position than we did at the end of 2024.

Gianfranco Ferrari: Thank you, Milagros, and good morning, everyone. We closed 2025 on a very solid footing, entering the new year in a stronger position than we did at the end of 2024. This was a year where the hard work of our teams, the clarity of our strategy, and the strength of our ecosystem came together to deliver results, not just in financial terms, but in how we showed up for clients, our people, and the markets we serve. The backdrop was favorable. Peru's economy exceeded expectations, with GDP growing around 3.5%, fueled by strong domestic demand, resilient consumption, and record-high exports above $90 billion. Key commodity prices further increased to new highs, particularly copper, silver, and gold, supporting investment flows and sentiment.

Speaker #3: This was a year where the hard work of our teams, the clarity of our strategy, and the strength of our ecosystem came together to deliver results.

Speaker #3: Not just in financial terms, but in how we showed up for clients, our people, and the markets we serve. The backdrop was favorable. Peru's economy exceeded expectations, with GDP growing around 3.5%, fueled by strong domestic demand, resilient consumption, and record-high exports above $90 billion.

Speaker #3: Key commodity prices further increased to new highs, particularly copper, silver, and gold, supporting investment flows and sentiment. The estimated mining investment pipeline for 2025 stands at $64 billion across multiple minerals, up 17% from 2024.

Gianfranco Ferrari: The estimated mining investment pipeline for 2025 stands at $64 billion across multiple minerals, up 17% from 2024. Inflation remained low, monetary policy became more supportive, and employment and real income trends improved. Domestic demand significantly exceeded GDP and grew around 6%, supported by stronger confidence and access to credit. Private investment exceeded expectations, expanding close to 10%, its strongest performance in 13 years, excluding the pandemic. Peru enters 2026 from a fundamentally stronger position than in previous election years. In 2021, we faced an economic crisis, a public health crisis, and deep institutional uncertainty. Today, we have a stable macro framework, strong external accounts, supported by high commodity prices and record exports, and a more pragmatic tone from policymakers.

Speaker #3: Inflation remained low, monetary policy became more supportive, and employment and real income trends improved. Domestic demand significantly exceeded GDP and grew around 6%. Supported by stronger confidence and access to credit.

Speaker #3: Private investment exceeded expectations, expanding close to 10%, its strongest performance in 13 years excluding the pandemic. Peru enters 2026 from a fundamentally stronger position than in previous election years, in 2021 we faced an economic crisis; a public health crisis; and deep institutional uncertainty.

Speaker #3: Today, we have a stable macro framework, strong external accounts supported by high commodity prices and record exports, and a more pragmatic tone from policymakers.

Speaker #3: That doesn't mean there won't be noise in the political arena. But it does mean we'll starting from a position of strength. Across the region, the operating environment remained dynamic but generally supportive.

Gianfranco Ferrari: That doesn't mean there won't be noise in the political arena, but it does mean we're starting from a position of strength. Across the region, the operating environment remained dynamic but generally supportive. In Colombia, growth came in around 2.7%, supported by consumption, while investment remained subdued. More recently, new challenges have arisen after the increase of the minimum wage. In Chile, GDP also expanded around 2.7%, driven primarily by investment and, to a lesser extent, by consumption, while inflation stood slightly above target. In Bolivia, GDP contracted for a second consecutive year, while inflation doubled to around 20%. Although the new government from Rodrigo Paz has taken positive, pragmatic first steps towards a favorable transition.

Speaker #3: In Colombia, growth came in at around 2.7%, supported by consumption, while investment remained subdued. More recently, new challenges have arisen after the increase of the minimum wage.

Speaker #3: In Chile, GDP also expanded around 2.7%, driven primarily by investment and to a lesser extent by consumption, while inflation stood slightly above target. And in Bolivia, GDP contracted for a second consecutive year, while inflation doubled to around 20%.

Speaker #3: Although the new government from Rodrigo Paz has taken positive, pragmatic first steps toward a favorable transition, the economic decline, however, contrasts sharply with the country's strong digital adoption, where YAPE has consolidated its position as the leading digital wallet.

Gianfranco Ferrari: The economic decline, however, contrasts sharply with the country's strong digital adoption, where Yape has consolidated its position as the leading digital wallet. Let me now shift to how our businesses performed in 2025, and the progress we've made across the group. Alejandro will provide more details in a moment. In universal banking, BCP continued to reinforce its leadership in Peru, underpinned by disciplined execution, operational excellence, and an increasingly seamless digital experience. Our transition toward a more efficient multi-channel distribution model, supported by enhanced data and AI capabilities, drove growth in retail lending, enabling us to serve over 3.2 million loan clients. We also reinforced our transactional leadership, while consolidating our NPS advantage, reaffirming BCP's position as the bank of choice for millions of Peruvians.

Speaker #3: Let me now shift to how our businesses performed in 2025 and the progress we've made across the group. Alejandro will provide more details in a moment.

Speaker #3: In Universal Banking, VCP continued to reinforce its leadership in Peru, underpinned by disciplined execution, operational excellence, and an increasingly seamless digital experience. Our transition toward a more efficient multi-channel distribution model, supported by enhanced data and AI capabilities, drove growth in retail lending, enabling us to serve over 3.2 million loan clients.

Speaker #3: We also reinforced our transactional leadership while consolidating our NPS advantage, reaffirming VCP's position as the bank of choice for millions of Peruvians. In microfinance, we delivered double-digit loan growth and increased our profitability, strengthening the resilience of the business and setting the foundation for sustainable growth.

Gianfranco Ferrari: In microfinance, we delivered double-digit loan growth and increased our profitability, strengthening the resilience of the business and setting the foundation for sustainable growth. In Peru, Mibanco consolidated its leadership and strengthened profitability by deepening its hybrid model, combining in-person advisory with digital tools and AI-driven risk analytics. This drove higher productivity and growth in smaller ticket loans, aligned with our risk appetite. We also diversified revenue through transactional services and savings deposits, increasing fee income and strengthening our funding base. In Colombia, despite a challenging environment, Mibanco delivered double-digit loan growth and improved profitability, supported by disciplined risk management and operational efficiency. In the insurance and pensions business, Grupo Pacífico increased its policyholders by 50% in the last three years, supported by integrated distribution and digital innovation, including one-click claims. In health, the full consolidation of Pacífico Salud enabled broader access and stronger medical service offerings.

Speaker #3: In Peru, Mi Banco consolidated its leadership and strengthened profitability by deepening its hybrid model, combining in-person advisory with digital tools and AI-driven risk analytics.

Speaker #3: This drove higher productivity and growth in smaller-ticket loans, aligned with our risk appetite. We also diversified revenue through transactional services and saving deposits.

Speaker #3: Increasing fee income and strengthening our funding base. In Colombia, despite a challenging environment, Mi Banco delivered double-digit loan growth and improved profitability, supported by disciplined risk management and operational efficiency.

Speaker #3: In the insurance and pension business, Grupo Pacífico increased its policyholders by 50% in the last three years, supported by integrated distribution and digital innovation, including one-click claims.

Speaker #3: In Health, the full consolidation of Pacífico Salud enabled broader access and stronger medical service offerings. In Pensions, despite systemic challenges, Prima made significant strides in digital adoption, efficiency, and client experience, improving NPS by three points.

Gianfranco Ferrari: In pensions, despite systemic challenges, Prima made significant strides in digital adoption, efficiency, and client experience, improving NPS by 3 points. In investment management and advisory, our diversified portfolio and a strategic transformation executed over recent years delivered solid and sustainable results. Assets under management surpassed the $20 billion mark in wealth management and increased nearly 35% in asset management. We further strengthened our platform with Hiva, our wealth tech offering in Peru, Colombia, and Chile, which now manages over $1.5 billion in assets, and is a key growth driver in the affluent segment, combining a digital-first experience with personalized advisory through a hybrid model. In capital markets, the launch of our financial corporation in Colombia, Corfi, marked a key milestone, enhancing our local capabilities and advancing our regional strategy.

Speaker #3: In investment management and advisory, our diversified portfolio and strategic transformation executed over recent years delivered solid and sustainable results. Assets under management surpassed the $20 billion mark in wealth management and increased nearly 35% in asset management.

Speaker #3: We further strengthened our platform with CIBA, our wealth tech offering in Peru, Colombia, and Chile, which now manages over $1.5 billion in assets and is a key growth driver in the affluent segment.

Speaker #3: Combining a digital-first experience with personalized advisory through a hybrid model. In capital markets, the launch of our financial corporation in Colombia, CORFI, marked a key milestone, enhancing our local capabilities and advancing our regional strategy.

Speaker #3: Regarding our innovation portfolio, risk-adjusted revenues represented 8.1% by the fourth quarter, advancing towards our 10% ambition. Yape, our most mature disruptive initiative, closed the year with nearly 16 million monthly active users, who engaged with the platform an average of 66 times per month.

Gianfranco Ferrari: Regarding our innovation portfolio, risk-adjusted revenues represented 8.1% by Q4, advancing towards our 10% ambition. Yape, our most mature disruptive initiative, closed the year with nearly 16 million monthly active users, who engaged with the platform an average of 66 times per month, a testament to its growing role in driving both financial inclusion and monetization. Lending activity scaled meaningfully with 4.1 million clients with a loan disbursed, highlighting the significant growth potential that remains ahead. In Chile, Tenpo reached an important milestone, surpassing 2.5 million clients and becoming the country's first neobank, following the approval of its banking license in January. Meanwhile, Monokera continued to scale efficiently, enabling modular, low-cost insurance distribution across multiple channels. What unites these businesses is a disciplined, purpose-driven approach to expanding access to financial services across the region.

Speaker #3: A testament to its growing role in driving both financial inclusion and monetization. Lending activity scaled meaningfully, with 4.1 million clients with a loan disbursed, highlighting the significant growth potential that remains ahead.

Speaker #3: In Chile, TEMPO reached an important milestone, surpassing $2.5 million clients and becoming the country's first neobank following the approval of its banking license in January.

Speaker #3: Meanwhile, Monoquera continued to scale efficiently, enabling modular, low-cost insurance distribution across multiple channels. For UNAIDS, these businesses are a disciplined, purpose-driven approach to expanding access to financial services across the region.

Speaker #3: This same strategic clarity guides our entire organization, shaping day-to-day execution and long-term capital allocation through four core pillars. Expanding financial inclusion across geographies and client segments.

Gianfranco Ferrari: This same strategic clarity guides our entire organization, shaping day-to-day execution and long-term capital allocation through four core pillars: expanding financial inclusion across geographies and client segments; deepening risk and capital discipline as a foundation for profitable growth; scaling AI, data, and digital platforms to unlock productivity, client experience, and engagement, and optimize business decisions; and building trust and leadership in every market we serve through client experience and operational excellence. Aligned with these priorities, we advanced key M&A moves. We took full ownership of our medical insurance business, which demonstrated strong strategic fit and execution discipline. We also announced at the year-end an agreement to acquire Helm Bank. Let me take a moment and discuss the strategic rationale of this addition to Credicorp.

Speaker #3: Deepening risk and capital discipline as a foundation for profitable growth. Scaling AI, data, and digital platforms to unlock productivity, client experience, and engagement, and optimize business. Building trust and leadership in every market we serve through client experience and operational excellence.

Speaker #3: Aligned with these priorities, we advance key M&A moves. We took full ownership of our medical insurance business, which demonstrated strong strategic fit and execution discipline.

Speaker #3: We also announced at the end an agreement to acquire Helm Bank, let me take a moment and discuss the strategic rationale of this addition to CREDICORP.

Speaker #3: These transactions are fully aligned with our strategy to strengthen CREDICORP's cross-border capabilities, through a focused niche approach. Enhancing our US offering without pursuing a universal banking model in that market.

Gianfranco Ferrari: This transaction is fully aligned with our strategy to strengthen Credicorp's cross-border capabilities through a focused niche approach, enhancing our US offering without pursuing a universal banking model in that market. We agreed to acquire 100% of the Helm Bank for $180 million, fully cash-funded and consistent with our disciplined capital allocation framework. Helm contributes over $1 billion in assets and a solid presence in Florida, serving both the local community and a predominantly Latin American client base. This move reflects a clear structural trend. Latin American clients continue to migrate assets to the US, where Florida stands out as a highly convenient location for investment, banking services, and real estate exposure. Our target market is equally clear.

Speaker #3: We agreed to acquire 100% of Helm Bank for $180 million. Fully cash funded and consistent with our disciplined capital allocation framework. Helm contributes over $1 billion in assets, and a solid presence in Florida.

Speaker #3: Serving both the local community and a predominantly Latin American client base. This move reflects a clear structural trend: Latin American clients continue to migrate assets to the US, where Florida stands out as a highly convenient location for investment, banking services, and real estate exposure.

Speaker #3: Our target market is equally clear: on the deposit side, we focus on affluent clients and regional corporates, while on the lending side, our priority segments are affluent Latin clients and Florida-based residents.

Gianfranco Ferrari: On the deposit side, we focus on affluent clients and regional corporates, while on the lending side, our priority segments are affluent Latam clients and Florida-based residents. Helm meaningfully strengthens our platform by adding a fully licensed FDIC-insured bank with core transactional capabilities that we do not currently offer in the US, while our Miami presence today focuses on corporate banking and private banking through our registered investment advisor and broker-dealer services. Helm fills the gap with a franchise that offers full daily banking, residential real estate financing, and credit cards, thus perfectly complementing our value proposition for internationally active clients.... With that, let me turn to our financial results. We delivered strong financial performance in the Q4 and for the full year, underscoring the strength of our execution and the favorable operating momentum across our businesses.

Speaker #3: Helm meaningfully strengthens our platform by adding a fully licensed FDIC-insured bank with core transactional capabilities that we do not currently offer in the US.

Speaker #3: While our Miami presence today focuses on corporate banking and private banking, through our registered investment advisor and broker-dealer services. Helm fills the gap with a franchise that offers full daily banking, residential real estate financing, and credit cards, thus perfectly complementing our value proposition for internationally active clients.

Speaker #3: With that, let me turn to our financial results. We delivered strong financial performance in the fourth quarter and for the full year, underscoring the strength of our execution and the favorable operating momentum across our businesses.

Speaker #3: We closed the quarter with a 16.9% ROE, and 19% for the full year, reflecting not only record-high net income but also the continued diversification of our revenue sources across banking, transactional services, insurance, health, asset management, and our digital platforms.

Gianfranco Ferrari: We closed the quarter with a 16.9% ROE, and 19% for the full year, reflecting not only record high net income, but also the continued diversification of our revenue sources across banking, transactional services, insurance, health, asset management, and our digital platforms, strengthening the quality and resilience of our earnings. These strong results were broad-based and consistent with our strategic priorities. Universal banking and insurance and pensions delivered very strong performance, while microfinance continued progressing towards its medium-term profitability target. Fee-based and transactional income continued to grow, underscoring the scalability of our platform. Our results were supported by healthy momentum in core revenues, with margins benefiting from a lower cost of funding and an improved funding mix, alongside continued improvements in risk metrics.

Speaker #3: Strengthening the quality and resilience of our earnings. These strong results were broad-based and consistent with our strategic priorities. Universal banking, insurance, and pensions delivered very strong performance, while microfinance continued progressing towards its medium-term profitability targets.

Speaker #3: Fee-based and transactional income continued to grow, underscoring the scalability of our platform. Our results were supported by healthy momentum in core revenues, with margins benefiting from a lower cost of funding and an improved funding mix.

Speaker #3: Alongside continued improvements in risk metrics, risk-adjusted NIM stood at 5.5% for the quarter, supported by better asset quality and a structurally efficient, low-cost funding base.

Gianfranco Ferrari: Risk-adjusted NIM stood at 5.5% for the quarter, supported by better asset quality and a structurally efficient, low-cost funding base. On the liability side, we continue to strengthen our deposit mix, reflecting strong digital engagement and sustained client trust. Importantly, these results were achieved while maintaining strong capital and solvency levels, reinforcing the robustness of our balance sheet. From an operational standpoint, our efficiency ratio came in at 49% in Q4, well within our expected range. Overall, these results reflect a business that is more resilient, more diversified, and better positioned for sustainable growth, while continuing to generate a positive local impact by expanding access to financial services and supporting economic activity across the region.

Speaker #3: On the liability side, we continue to strengthen our deposit mix, reflecting strong digital engagement and sustained client trust. Importantly, these results were achieved while maintaining strong capital and solvency levels, reinforcing the robustness of our balance sheet.

Speaker #3: From an operational standpoint, our efficiency ratio came in at 49% in the fourth quarter, well within our expected range. Overall, these results reflect a business that is more resilient, more diversified, and better positioned for sustainable growth.

Speaker #3: While continuing to generate a positive local impact by expanding access to financial services and supporting economic activity across the region, I will now turn the call over to Alejandro, who will go into further detail on the macro environment, each of our operating businesses, and our consolidated results.

Gianfranco Ferrari: I will now turn the call over to Alejandro, who will go into further detail on the macro environment, each of our operating businesses, and our consolidated results. Alejandro?

Speaker #3: Alejandro?

Speaker #2: Thank you, Gianfranco, and good morning, everyone. As Gianfranco mentioned, we delivered strong overall operating results, including a record-high net income, which reflects solid growth in risk-adjusted revenue streams in our business ecosystem.

Alejandro Pérez-Reyes: Thank you, Gianfranco, and good morning, everyone. As Gianfranco mentioned, we delivered strong overall operating results, including a record high net income, which reflects solid growth in risk-adjusted revenue streams in our business ecosystem. As I discuss the quarter's highlights, I will focus on the quarter-over-quarter operating trends. Loans measured in quarter-end balances increased 3.6%. This uptick was driven primarily by BCP, through both retail and wholesale banking, and by Mibanco. Asset quality has improved across the board, and Credicorp's NPL ratio stood at 4.5% this quarter. The cost of risk stood at 1.8% on the back of fortified risk management and supported by improvements in payment performance and in the Peruvian economy.

Speaker #2: As I discussed the quarter's highlights, I will focus on the quarter-over-quarter operating trends. Loans measured in quarter-end balances increased 3.6%. This uptick was driven primarily by BCP through both retail and wholesale banking, and by MiBanco.

Speaker #2: Asset quality has improved across the board, and CREDICORP's MPL ratio stood at 4.5% this quarter. The cost of risk stood at 1.8%, on the back of fortified risk management and supported by improvements in payment performance and in the Peruvian economy.

Speaker #2: Net interest income increased 4.2%, spurred by an expansion in interest income, mainly driven by loan portfolio growth, and by a contraction in interest expenses after interest rates fell and low-cost deposits expanded and accounted for 61.4% of the funding base.

Alejandro Pérez-Reyes: Net interest income increased 4.2%, spurred by an expansion in interest income, mainly driven by loan portfolio growth, and by a contraction in interest expenses after interest rates fell and low-cost deposits expanded and accounted for 61.4% of the funding base. In this context, NIM stood at 6.6%. Other core income grew 6%. Fee income increased 5.2%, boosted by transactional activity at Yape and BCP. Gains on FX transactions rose 8.2% through higher volumes at BCP. Lastly, the insurance underwriting results fell 17.4%, mainly reflecting normalization in the disability and survivorship line of the life business, which registered a base effect for favorable extraordinary reversals last quarter. Excluding this line, underlying performance across our insurance operations remained solid, with insurance underwriting results remaining relatively stable this quarter.

Speaker #2: In this context, NIM stood at 6.6%. Other core income grew 6%. Fee income was driven by transactional activity at Yape and BCP. Gains on FX transactions rose 8.2% through higher volumes at BCP.

Speaker #2: Lastly, the insurance and the writing result fell 17.4%, mainly reflecting normalization in the disability and survivorship line of the life business, which registered a base effect for favorable extraordinary reversals last quarter.

Speaker #2: Excluding this line, underlying performance across our insurance operations remained solid, with insurance and the writing result remaining relatively stable this quarter. All in all, we delivered 16.9% ROE this quarter, supported by the aforementioned operation dynamics, while maintaining sound capital levels, on cumulative terms, ROE stood at 19%.

Alejandro Pérez-Reyes: All in all, we delivered 16.9% ROE this quarter, supported by the aforementioned operation dynamics, while maintaining sound capital levels. On cumulative terms, ROE stood at 19%. Next slide, please. Peru's macroeconomic performance in 2025 was strong, despite heightened global uncertainty and lingering political concerns following President Boluarte's impeachment. GDP grew around 3% year-on-year in Q4, slightly lower than the rate observed in the previous period, as the solid performance of non-primary sectors partially offset a slowdown in primary activities. The fishing sector registered a sharp contraction, given that this year's catch quota was below last year's. Meanwhile, domestic demand remained robust, expanding more than 5% year-on-year. High-frequency indicators point to a continued broad-based strengthening of domestic demand. Most metrics, ranging from consumption-related variables to investment and external conditions, continue to post double-digit year-over-year growth.

Speaker #2: Next slide, please. Peru's macroeconomic performance in 2025 was strong despite heightened global uncertainty and lingering political concerns following President Boluarte's impeachment. GDP grew around 3% year-on-year in the fourth quarter, slightly lower than the rate observed in the previous period, as the solid performance of non-primary sectors partially offset a slowdown in primary activities.

Speaker #2: The fishing sector registered a sharp contraction, given that this year's catch quota was below last year's. Meanwhile, domestic demand remained robust, expanding more than 5% year-on-year.

Speaker #2: High-frequency indicators point to a continued broad-based strengthening of domestic demand. Most metrics, ranging from consumption-related variables to investment and external conditions, continue to post double-digit year-over-year growth.

Speaker #2: In full-year terms, GDP expanded roughly 3.5% in 2025, while domestic demand grew close to 6%, supported by the economic mid-cycle momentum and a boost from terms of trade.

Alejandro Pérez-Reyes: In full year terms, GDP expanded roughly 3.5% in 2025, while domestic demand grew close to 6%, supported by the economic mid-cycle momentum and a boost from terms of trade, which reached their highest level in 75 years. A similar performance is expected in 2026, marking a third consecutive year of GDP growth around 3.5%, with domestic demand expanding above 4%. There is meaningful upside potential. Copper and gold prices recently reached historical highs and stand between 30% and 50% higher than their 2025 average, respectively. If they remain elevated and the post-election environment delivers greater policy predictability, improved governance, and a more supportive backdrop for private investment, Peru could grow above its century-long average of 4%. Next slide, please.

Speaker #2: These reached their highest level in 75 years. A similar performance is expected in 2026, marking a third consecutive year of GDP growth around 3.5%, with domestic demand expanding above 4%.

Speaker #2: There is meaningful upside potential. Copper and gold prices recently reached historical highs and stand between 30% and 50% higher than their 2025 average, respectively.

Speaker #2: If they remain elevated, and the post-election environment delivers greater policy predictability, improved governance, and a more supportive backdrop for private investment, Peru could grow above its century-long average of 4%.

Speaker #2: Next slide, please. The Federal Reserve lowered its policy rate 75 basis points last year, for a cumulative reduction of 175 basis points since 2024.

Alejandro Pérez-Reyes: The Federal Reserve lowered its policy rate 75 basis points last year for a cumulative reduction of 175 basis points since 2024. This year, Fed Fund futures are pricing in 2 additional rate reductions throughout the second half of the year. However, given the resilience of the US economy and institutional changes ahead, including the transition to new leadership as Chair Powell's term expires, there is considerable uncertainty regarding whether further cuts will ultimately materialize. In Peru, the headline inflation rate closed 2025 at 1.5%, its lowest year-end level in seven years.

Speaker #2: This year, Fed fund futures are pricing in two additional rate reductions throughout the second half of the year. However, given the resilience of the US economy and institutional changes ahead, including the transition to new leadership as Chair Powell's term expires, there is considerable uncertainty regarding whether further cuts will ultimately materialize.

Speaker #2: In Peru, the headline inflation rate closed 2025 at 1.5%, its lowest year-end level in seven years. After lowering its rate by 350 basis points since September 2023, the central bank delivered its most recent rate cut last September, and the outlook for further easing remains uncertain as the policy rate is now broadly aligned with its neutral level and the economy is expanding close to potential.

Alejandro Pérez-Reyes: After lowering its rate by 350 basis points since September 2023, the central bank delivered its most recent rate cut last September, and the outlook for further easing remains uncertain, as the policy rate is now broadly aligned with its neutral level and the economy is expanding close to potential. In Colombia, inflation accelerated to 4.51% in December 2025. Following the 24% increase in the minimum wage, market participants revised their inflation forecast for 2026 upward, and now expect a higher policy rate than previously anticipated. In fact, the central bank increased its rate by 100 basis points in its most recent meeting to 10.25.

Speaker #2: In Colombia, inflation accelerated to 5.1% in December 2025. Following the 24% increase in the minimum wage, market participants revised their inflation forecast for 2026 upward, and now expect a higher policy rate than previously anticipated. In fact, the central bank increased its rate by 100 basis points in its most recent meeting to 10.25%.

Speaker #2: In Chile, the currency has been the strongest performer among emerging markets after the second electoral round in which José Antonio Kast secured a decisive victory, and further supported by copper prices rallying to record highs.

Alejandro Pérez-Reyes: In Chile, the currency has been the strongest performer among emerging markets after a second electoral round, in which José Antonio Kast secured a decisive victory and further supported by copper prices rallying to record high. The policy rate stands at 4.5%, and the central bank is expected to maintain a wait-and-see stance throughout the year. Next slide, please. BCP achieved a full-year ROE of 24.7%. This sound result demonstrate the company's strategic strength, such as clear market leadership, disciplined risk management, unique digital services, and advanced technology and transactional capabilities. These advantages contribute to robust local funding, diverse revenue streams, and increased principality with our clients. On a quarter-over-quarter basis, total loans measured in quarter-end balances rose 1.7%. In FX neutral terms, loan growth stood at 2.7%, driven by both retail and wholesale banking.

Speaker #2: The policy rate stands at 4.5%, and the central bank is expected to maintain a wait-and-see stance throughout the year. Next slide, please. BCP achieved a full-year ROE of 24.7%.

Speaker #2: This sound result demonstrates the company's strategic strength, such as clear market leadership, disciplined risk management, unique digital services, and advanced technology and transactional capabilities.

Speaker #2: These advantages contribute to robust, low-cost funding, diverse revenue streams, and increased principality with our clients. On a quarter-over-quarter basis, total loans measured in quarter-end balances rose 1.7%.

Speaker #2: In FX-neutral terms, loan growth stood at 2.7%, driven by both retail and wholesale banking. Notably, longer-term corporate loans began to recover this quarter despite political uncertainty.

Alejandro Pérez-Reyes: Notably, longer-term corporate loans began to recover this quarter despite political uncertainty. NIM remained relatively stable at 6.1%, reflecting resilience in the context of lower interest rates. Other core income grew 5.9%, mainly due to fee income, where Yape and other payments and transactional services remain key drivers. NPL volumes declined 3.6%, mainly due to debt repayments by wholesale clients in construction and transportation sectors, and due to higher write-offs and repayments of loans and the judicial recovery by SME clients. Provisions rose 9.9%, reflecting dynamics in retail banking and a specific impact within wholesale banking. In retail banking, provisions for individuals remained stable, but rose for SMEs. Core underlying risk in SME segments remained stable, but there was an increase in write-offs in SME Pyme, which drove the increase in total provisioning.

Speaker #2: NIM remained relatively stable at 6.1%, reflecting resilience in the context of lower interest rates. Other core income grew 5.9%, mainly due to fee income, where IAPE and other payments and transactional services remain key drivers.

Speaker #2: NPL volumes declined 3.6%, mainly due to debt repayments by wholesale clients in the construction and transportation sectors, and due to higher write-offs and repayments of loans under judicial recovery by SME clients.

Speaker #2: Provisions rose 9.9%, reflecting dynamics in retail banking and specific impacts within wholesale banking. In retail banking, provisions for individuals remained stable but rose for SMEs.

Speaker #2: Core underlying risk in SME segments remained stable, but there was an increase in write-offs in SME PYME, which drove the increase in total provisioning.

Speaker #2: Within wholesale banking, risk associated with indirect exposure to certain clients in the construction sector rose. The cost of risk edged up to 1.4%, supported by favorable macroeconomic conditions in Peru.

Alejandro Pérez-Reyes: Within wholesale banking, risk associated with indirect exposure to certain clients in the construction sector rose. The cost of risk edged up to 1.4%, supported by favorable macroeconomic conditions in Peru. In this context, BCP's risk-adjusted NIM stood at 5.2%. From a full year perspective, I would like to highlight the following dynamics: Loan balances grew 3.8%. However, loan growth in FX neutral terms reached 7.8%, led primarily by retail segments, particularly individuals, reflecting the strong momentum of internal demand. It is worth highlighting the strong performance of mortgages, which grew 9.9%, propelled in part by lower interest rates. In wholesale banking, loan growth was fueled by the same dynamics seen quarter-over-quarter, where recovery in private investment was a primary catalyst.

Speaker #2: In this context, BCP's risk-adjusted NIM stood at 5.2%. From a full-year perspective, I would like to highlight the following dynamics. Loan balances grew 3.8%.

Speaker #2: However, loan growth in FX-neutral terms reached 7.8%. Debt, primarily by retail segments—particularly individuals—reflected a strong momentum of internal demand. It is worth highlighting the strong performance of mortgages, which grew 9.9%, propelled in part by lower interest rates.

Speaker #2: In wholesale banking, loan growth was fueled by the dynamics seen quarter-over-quarter, where recovery in private investment was the primary catalyst. NPLs contracted across BCP segments, led primarily by a decrease in wholesale banking, which registered debt repayments by corporate clients, and secondarily by SMEs and individuals.

Alejandro Pérez-Reyes: NPLs contracted across BCP segments, led primarily by a decrease in wholesale banking, which raised their debt repayments by corporate clients, and secondarily by SMEs, and individuals. In individuals, the reduction in NPLs was attributable to a decrease in debt refinancing. This evolution, which was supported by a positive economic backdrop, reflects improvements in loan origination and collections management. NIM stood at 5.8%, as lower interest rates negatively impacted the yield on interest-earning assets. This was partially offset by a decline in the funding cost. The cost of risk fell across segments in individuals, and SME Pyme, driven by improvements in payment performance after lower risk vintages increased their share of total loans, supported by a strengthening economic backdrop. Other core income rose 15.1%.

Speaker #2: In individuals, the reduction in NPLs was attributable to a decrease in debt refinancing. This evolution, which was supported by a positive economic backdrop, reflects improvements in loan origination and collections management.

Speaker #2: NIM stood at 5.8%, as lower interest rates negatively impacted the yield on interest-earning assets. This was partially offset by a decline in the funding cost.

Speaker #2: The cost of risk fell across segments in individuals and SME PYME, driven by improvements in payment performance after lower-risk vintages increased their share of total loans, supported by a strengthening economic backdrop.

Speaker #2: Other core income rose 15.1%. This solid performance was driven by growth in transactions through IAPE, an uptick in fee income at BCP, and an increase in gains on FX transactions, which grew on the back of higher transacted volumes.

Alejandro Pérez-Reyes: This solid performance was driven by growth in transactions through Yape, an uptick in fee income at BCP, and an increase in gains on FX transactions, which grew on the back of higher transacted volumes. The ratio of other core income to assets continued to rise, reflecting the effectiveness of our strategy to diversify BCP's revenue sources. This progress is supported by ongoing relevant investments that strengthen our transactional capabilities and digital platforms. Key projects on this front are Mainfreight, Mobile Lab 3.0, cybersecurity, among others. As a result, operational expenses, and personal expenses in particular, led the efficiency ratio to stand at 39.7%. Next slide, please. Yape continues to consolidate its role as a leading driver of longer-term value creation. With nearly 16 million monthly active users, Yape has become the country's most loved and recognized brand.

Speaker #2: The ratio of other core income to assets continued to rise, reflecting the effectiveness of our strategy to diversify BCP's revenue sources. This progress is supported by ongoing, relevant investments that strengthen our transactional capabilities and digital platforms.

Speaker #2: Key projects on this front are Main Free, Mobile App 3.0, Cybersecurity, among others. As a result, operational expenses—and personnel expenses in particular—led the efficiency ratio to stand at 39.7%.

Speaker #2: Next slide, please. IAPE continues to consolidate its role as a leading driver of longer-term value creation. With nearly 16 million monthly active users, IAPE has become the country's most loved and recognized brand.

Speaker #2: This connection with users has translated into an exceptional NPS, which peaked at 81 points by year-end, well above traditional financial services benchmarks. Our advances have reinforced the engagement and users now conduct 66 transactions per month on average.

Alejandro Pérez-Reyes: This connection with users has translated into an exceptional NPS, which peaked at 81 points by year-end, well above traditional financial services benchmarks. Our advances have reinforced engagement, and users now conduct 66 transactions per month on average. From a monetization perspective, monthly revenue per month continued to expand at a rapid pace, reaching PEN 9.6 as of 25 December. Monthly expenses per month, in turn, were fueled largely by seasonal charges. Annually, average monthly revenue per month rose 62%, far surpassing the 15% growth in monthly expenses per month, demonstrating strong operating leverage. Payments remain the largest contributor, accounting for over half of total revenues. If benchmarked against the banking system, Yape fee generation would rank within the top five institutions in Peru.

Speaker #2: From a monetization perspective, monthly revenue per MAU continued to expand at a rapid pace, reaching 9.6 soles as of December 25. Monthly expenses per MAU, in turn, were fueled largely by seasonal charges.

Speaker #2: Annually, average monthly revenue per MAU rose 62%, far surpassing the 15% growth in monthly expenses per MAU, demonstrating strong operating leverage. Payments remained the largest contributor, accounting for over half of total revenues.

Speaker #2: If benchmarked against the banking system, IAPE fee generation would rank within the top five institutions in Peru. Strong growth in QR payments, bill payments, and checkout solutions are evidence of increasing user adoption, and revenue-generating total payment volume almost doubled year over year.

Alejandro Pérez-Reyes: A strong growth in QR payments, bill payments, and checkout solutions are evidence of increasing user adoption, and revenue-generating total payment volume almost doubled year-over-year. Lending has become the main driver of growth within Yape's financial business, now accounting for 23% of revenues, reflecting the platform's ability to translate engagement, data, and risk management capabilities into scalable credit solutions. Yape has dispersed over 16 million loans, expanding credit access to 4.1 million users, of whom almost 1/3 are first-time borrowers. Looking ahead, Yape represents one of Credicorp's most compelling sources of upside and strategic optionality. By deepening monetization across its existing user base and continue to leverage engagement and data as a powerful competitive mode, Yape underpins its strategic relevance within the ecosystem. As of Q4 of 2025, Yape doubled year-over-year its contribution to Credicorp's risk-adjusted revenue, which stood at 7.2%.

Speaker #2: Lending has become the main driver of growth within IAPE's financial business, now accounting for 23% of revenues. This reflects the platform's ability to translate engagement, data, and risk management capabilities into scalable credit solutions.

Speaker #2: IAPE has disbursed over 16 million loans, expanding credit access to 4.1 million users, of whom almost one-third are first-time borrowers.

Speaker #1: Looking ahead, the Apple represents one of credit card's most compelling sources of upside and strategic optionality. By deepening monetization across its existing user base and continuing to leverage engagement and data as a powerful competitive moat, it underpins its strategic relevance within the ecosystem.

Speaker #1: As of the fourth quarter of 2025 , yep , doubled year over year . Its contribution to credit risk adjusted revenue , which stood at 7.2% .

Speaker #1: This progress reinforces our trajectory to become our second largest contributor while maintaining a strong focus on financial inclusion. Next slide, please. As Peru's microfinance system continues to regain momentum amid the country's steady economic environment, full-year perspective loans, measured in quarter-end balances, grew 11.2%.

Alejandro Pérez-Reyes: This progress reinforces Yape's trajectory to become our second-largest contributor, while maintaining a strong focus on financial inclusion. Next slide, please. As Peru's microfinance system continues to regain momentum amid the country's steady economic recovery, sector performance has strengthened notably. In this context, Mibanco outperformed its peers by deepening its hybrid model, gaining productivity, and strengthening credit risk management. As a result, Mibanco delivered double-digit loan growth and robust profitability of 20% this quarter. I would like to highlight key quarter-over-quarter dynamics. Loans grew 3.9% in quarter-end balances, riding an upswing in loan disbursement, which hit a new all-time high in October. The NPA ratio continued its downward trajectory over the past year, falling to 5.3%, an 11-year low. NIM peaked at 15.2%, boosted by a shift in the mix towards small ticket, higher yield loans.

Alejandro Pérez-Reyes: In parallel, the cost of risk fell 44 basis points to stand at 4.8%, while risk-adjusted NIM reached a new four-year high of 11.6%. From a full year perspective, loans measured in quarter-end balances grew 11.2%. Our active pricing management, coupled with a decrease in the cost of funding, boosted NIM. The cost of risk fell 64 basis points, as lower risk vintages continued to gain traction and now account for 84% of total loans. Operating expenses remained under control, and efficiency stood at 50.9%, supported by ongoing investments in strategic projects. In this context, Mibanco's full year contribution to ROE was 16.6%, transitioning towards our target for medium-term ROE in the low 20s.

Speaker #1: Our active pricing management , coupled with a decrease in the cost of funding , boosted Nim The cost of risk fell 64 basis points as lower risk vintages continued to gain traction and now account for 84% of total loans .

Speaker #1: Operating expenses remained under control and efficiency stood at 50.9% . Supported by ongoing investments in strategic projects . In this context , Vivancos full year contribution to ROE was 16.6% .

Speaker #1: Transitioning towards our target for medium term ROE in the low 20s . Vivanco , Colombia's results , which were supported by a more favorable economic environment for the microfinance sector , continue to rise and registered double digit loan growth year over year , bolstered by controlled risk management and optimized efficiency .

Alejandro Pérez-Reyes: Mibanco Colombia's results, which were supported by a more favorable economic environment for the microfinance sector, continued to rise and registered double-digit loan growth year-over-year, bolstered by controlled risk management and optimized efficiency. As a result, profitability stood at 13.2% at quarter end, and 10.3% for the full year, compared with losses recorded in 2024. Next slide, please. Grupo Pacífico delivered another year of strong performance in 2025, achieving a solid ROE of 21.4%, supported by robust commercial dynamics across businesses. Growth reflected the expansion in our bancassurance channels and an uptick in the issuance of optional policies, reinforcing the value of our strategy to grow in retail segments.

Speaker #1: As a result, profitability stood at 13.2% at quarter end and 10.3% for the full year, compared with losses recorded in 2020.

Speaker #1: For next slide please. Grupo Pacifico delivered another year of strong performance in 2025, achieving a solid ROE of 21.4%, supported by robust commercial dynamics across businesses.

Speaker #1: Growth reflected the expansion in our bancassurance channels and an uptick in the issuance of optional policies reinforcing the value of our strategy to grow in retail segment .

Speaker #1: On a quarterly basis , net income dropped 1% , primarily impacted by a decrease in insurance underwriting results , particularly in the life business , due to a base effect in the disability and survivorship line .

Alejandro Pérez-Reyes: On a quarterly basis, net income dropped 1%, primarily impacted by a decrease in the insurance underwriting results, particularly in the life business, due to a base effect in the disability and survivorship line, following extraordinary regularizations last quarter, and by higher operating expenses due to seasonality. These impacts were partially offset by a decrease in the net loss on securities. From a full year perspective, Grupo Pacífico delivered solid performance. Net income rose 13%, primarily on the back of Pacífico's full consolidation of the Banmédica transaction. Excluding the consolidation effect, net income increased 4%, mainly driven by a 9% rise in insurance underwriting results. It is important to note that the results of the ongoing operating business grew 21%, partially offset by the contraction of the disability and survivorship line, which did not actively operate in 2025.

Speaker #1: Following extraordinary regularizations last quarter and by higher operating expenses due to seasonality This impacts were partially offset by a decrease in the net loss on securities from a full year perspective , group delivered solid performance net income rose 13% , primarily on the back of Pacifico's full consolidation of the transaction .

Speaker #1: Excluding the consolidation effect , net income increased 4% , mainly driven by a 9% rise in insurance underwriting results . It is important to note that the results of the ongoing operating business grew 21% , partially offset by the contraction of the disability and survivorship line , which did not actively operate in 2025 .

Speaker #1: If we exclude DNS from our insurance underwriting results . The underwriting performance of the ongoing operating business was driven mainly by the life business through a favorable performance in credit and individual lines , and by the PNC Business , particularly through better results in personal lines and cars This operating results were partially offset by an increase in the net loss on securities , which was impacted by credit downgrades on a couple of assets in the investment portfolio and by higher operating expenses .

Alejandro Pérez-Reyes: If we exclude DNS from our insurance underwriting results, the underwriting performance of the ongoing operating business was driven mainly by the life business, through a favorable performance in trade and individual lines, and by the P&C business, particularly through better results in personal lines and cars... These operating results were partially offset by an increase in the net loss on securities, which was impacted by credit downgrades on a couple of assets in the investment portfolio, and by higher operating expenses. Our corporate health insurance and medical services operations posted solid results and are well-positioned for a strong 2026. Moving forward, we intend to bolster our commitment to providing high-quality products and services for, for both insurance and health. Next slide, please.

Speaker #1: Our corporate health insurance and medical services operations posted solid results and are well positioned for a strong 2026 . Moving forward , we intend to bolster our commitment to providing high quality products and services for both insurance and health Next slide please For our investment management and advisory business , full year profitability remained solid with ROE increasing 110 basis points to stand at 16.4% .

Alejandro Pérez-Reyes: For our investment management and advisory business, full-year profitability remains solid, with ROE increasing 110 basis points to stand at 16.4%. Let me begin with a brief overview of this quarter dynamics, and then move to the full year view and underlying structural trends. Quarter results showed mixed dynamics. Revenues benefited from stronger performance in asset management and improved treasury results, but declined in wealth management due to lower market rates and in capital markets, due to a base effect after a high result last quarter. Expenses increased due to seasonal operating dynamics. Turning to the full-year view, net income rose 2% over the period.

Speaker #1: Let me begin with a brief overview of this quarter’s dynamics, and then move to the full-year view and underlying structural trends.

Speaker #1: Quarter results showed mixed dynamics. Revenues benefited from stronger performance in asset management and improved Treasury results, but declined in wealth management due to lower market rates, and in capital markets due to a base effect.

Speaker #1: After a high result last quarter , expenses increased due to seasonal operating dynamics . Turning to the full year view , net income rose 2% over the period .

Speaker #1: This result was driven by a strong year in capital markets , which was led by an upswing in activity , mainly through the trading unit .

Alejandro Pérez-Reyes: This result was driven by a strong year in capital market, which was led by an upswing in activity, mainly through the trading unit, solid performance in asset management, where AUMs grew 35%, and an improvement in treasury results. These positive dynamics were partially offset by higher operating expenses and lower revenues in wealth management, despite a 24% growth in AUMs. Next slide, please. Now, I would like to review Credicorp's consolidated evolution. Regarding quarter-over-quarter dynamics, growth in cash balances was fueled mainly by higher liquidity, which rose on the back of inflows from pension fund withdrawals. Nonetheless, the dynamism of our loan portfolio helped anchor our yield on interest-earning assets, which remained relatively stable with a minor 4 basis points decrease. On the liability side, low-cost deposit share of total funding rose significantly, riding the wave of higher liquidity in the market.

Speaker #1: Solid performance in asset management, where AUM grew 35%, and an improvement in Treasury results. This positive dynamic was partially offset by higher operating expenses and lower revenues in wealth management.

Speaker #1: Despite a 24% growth in AUM Next slide please . Now I'd like to review credit cards . Consolidated evolution regarding quarter over quarter dynamics , growth in cash balances was fueled mainly by higher liquidity , which rose on the back of inflows from pension fund withdrawals Nonetheless , the dynamism of our loan portfolio helped anchor our yield on interest earning assets , which remained relatively stable with a minor four basis points decrease on the liability side , low cost deposits share of total funding rose significantly .

Speaker #1: Riding the wave of higher liquidity in the market, more expensive sources of funding in turn registered a reduction in their share. In our funding structure, with the exception of bonds, whose share grew on the back of a subordinated bond issuance by VCP.

Alejandro Pérez-Reyes: More expensive sources of funding, in turn, registered a reduction in their share in our funding structure, with the exception of bonds, whose share grew on the back of a subordinated bond issuance by BCP. In this context, the funding cost dropped 12 basis points. On a full year basis, loan growth, which was driven mainly by retail segments, led the interest-earning asset mix to generate higher yields despite cash buildup. In this context, the yield on interest-earning assets rose 7 basis points. On the liability side, interest rate dynamics, complemented by a decrease in bonds and interest-bearing deposits share in our funding structure, led the funding cost to drop 25 basis points. In this context, NIM stood at 6.3% on a full year basis.

Speaker #1: In this context , the funding costs dropped 12 basis points on a full year basis . Loan growth , which was retained mainly by retail segments , led the interest earning asset mix to generate higher yields despite cash build up .

Speaker #1: In this context , the yield on interest earning assets rose seven basis points on the liability side , interest rate dynamics complemented by a decrease in bonds and interest bearing deposits , share in our funding structure , led the funding costs to drop 25 basis points .

Speaker #1: In this context , Nim stood at 6.3% on a full year basis as a positive credit cycle consolidates . Growth in retail lending .

Alejandro Pérez-Reyes: As the positive credit cycle consolidates, growth in retail lending, powered by a strength in risk management and digital distribution capabilities, should sustain NIM's growth. Next slide, please. Moving on to loan portfolio quality. Asset quality continued to improve this quarter, as NPL volumes contracted across segments. The NPL ratio at quarter end was a low 4.5%, which is below the levels reported prior to the 2023 recession. Amid a steady economic recovery in the past year, provisions have dropped over the past 12 months due to an improvement in payment performance, and successful risk management measures, both at BCP and Mibanco. In this context, the NPL coverage ratio rose and stood at 112.4%. Going forward, we will continue to accelerate retail origination while managing risks.

Speaker #1: Powered by strengthened risk management and digital distribution capabilities, this should sustain NIM's growth. Next slide, please. Moving on to the loan portfolio quality—asset quality continued to improve this quarter as NPL volumes contracted across segments.

Speaker #1: The NPL ratio at quarter end was a low 4.5% , which is below the levels reported prior to the 2023 recession . Amid a steady economic recovery in the past year , provisions have dropped over the past 12 months due to an improvement in payment performance and successful risk management measures , both at VCP and Vivanco .

Speaker #1: In this context, the NPL coverage ratio rose and stood at 112.4%. Going forward, we will continue to accelerate retail origination while managing risk.

Speaker #1: Consequently, we expect loan growth to continue to recover its pace, and the cost of risk to rise slightly and remain within our appetite.

Alejandro Pérez-Reyes: Consequently, we expect loan growth to continue to recover its pace and the cost of risk to rise slightly and remain within our appetite. Next slide, please. Core income showed solid sequential improvement in the quarter, supported by strong operating momentum. Net interest income increased 4.2% quarter-over-quarter, supported by loan origination expansion and stable funding costs. Other core income also contributed positively, with fee income growing 5.2% quarter-over-quarter, and FX gains rising 8.2%. These advances, which reflect higher activity at year-end, attest to consistently solid performance across core banking and transactional businesses. On a full-year basis, core income increased 6.4%, driven by diversified revenue streams. Net income rose 4.3% - Net interest income rose 4.3%, fee income 11.7%, and FX gains 13.4%.

Speaker #1: Next slide, please. Corringham showed solid sequential improvement in the quarter, supported by strong operating momentum. Net interest income increased 4.2% quarter over quarter, supported by loan origination and stable funding costs.

Speaker #1: expansion The shift in the earning mix underscores credit progress in building a more resilient and scalable earning profile . Risk adjusted rose , 51 basis points , standing at 5.28% .

Speaker #1: Other core income also contributed positively , with fee income growing 5.2% quarter over quarter and FX gains rising 8.2% . These advances , which reflect higher activity at year end , attest to consistently solid performance across core banking and transactional businesses on a full year basis .

Speaker #1: Core income increased 6.4% , driven by diversified revenue streams . Net income rose 4.3% , net interest income rose 4.3% , fee income 11.7% , and FX gains 13.4% .

Alejandro Pérez-Reyes: The shift in the earning mix underscores Credicorp's progress in building a more resilient and scalable earning profile. Risk-adjusted NIM rose 51 basis points, standing at 5.28%. This evolution reflects how our pricing and risk management capabilities are becoming a competitive edge and enabling expansion into new market segments. The efficiency ratio for the year stood within guidance at 46.6%. Operating expenses grew 12%, fueled primarily by core businesses at BCP and by investments in our innovation portfolio. Growth in core expenses at BCP was driven mainly by an increase in personnel expenses related to commercial, technological, and transactional capabilities development. Expenses for innovation portfolio rose 18.4%, led by Yape, Tenpo, and Culqi, which represented 83% of disruptive expenses this year. Next slide, please.

Speaker #1: This evolution reflects that our pricing and risk management capabilities are becoming a competitive edge and enabling expansion into new market segments. The efficiency ratio for the year stood within guidance at 46.6%.

Speaker #1: Operating expenses grew 12% , fueled primarily by core businesses at BCP and by investments in our innovation portfolio . Growth in core expenses at VCP was driven mainly by an increase in personnel expenses related to commercial and technological and transactional capabilities , development expenses for innovation , portfolio rose 18.4% , led by Tempo and Schulke , which represented 83% of disruptive expenses .

Speaker #1: This year, next slide please, ROE for the full year was 19%, supported by solid business performance and bolstered by the extraordinary gain from the transaction in the first quarter.

Alejandro Pérez-Reyes: ROE for the full year was 19%, supported by solid business performance and bolstered by the extraordinary gain from the America transaction in the first quarter. If we adjust for this transaction, ROE is 18.6% for the full year 2025. Net income reached a record high, even if we exclude the gain from the America transaction. We achieved this by capitalizing on our structural strength, our differentiated data and transactional capabilities, low cost of funding advantage, and sustained improvements in risk management and loan portfolio growth, particularly in retail segments. Now, I will move on to our guidance. Next slide, please.

Speaker #1: If we adjust for this transaction , ROE is 18.6% for the full year 2025 , net income reached a record high . Even if we exclude the gain from the America transaction , we achieved this by capitalizing on our structural strength , our differentiated digital and transactional capabilities , low cost of funding advantage , and sustained improvements in risk management and loan portfolio growth , particularly in retail segments .

Speaker #1: Now I will move on to our guidance . Next slide please We revised Peru's GDP growth outlook to around 3.5% in 2026 . We expect our total loan book to grow around 8.5% , measured in quarter end balances .

Gianfranco Ferrari: ... We revised Peru's GDP growth outlook to around 3.5% in 2026. We expect our total loan book to grow around 8.5%, measured in quarter end balances. Amid a more dynamic economic backdrop and strengthening origination levels in 2025, we expect growth in balances to continue accelerating this year, driven primarily by retail banking at BCP and by Mibanco. The acceleration anticipated for loan growth and the shift in the mix towards retail should support NIM, despite potential policy rate reductions in soles and dollars down the line. Accordingly, we expect NIM to stand between 6.4% to 6.7%. The cost of risk guidance is between 1.7% and 2.1%.

Alejandro Pérez-Reyes: ... We revised Peru's GDP growth outlook to around 3.5% in 2026. We expect our total loan book to grow around 8.5%, measured in quarter end balances. Amid a more dynamic economic backdrop and strengthening origination levels in 2025, we expect growth in balances to continue accelerating this year, driven primarily by retail banking at BCP and by Mibanco. The acceleration anticipated for loan growth and the shift in the mix towards retail should support NIM, despite potential policy rate reductions in soles and dollars down the line. Accordingly, we expect NIM to stand between 6.4% to 6.7%. The cost of risk guidance is between 1.7% and 2.1%.

Speaker #1: Amid a more dynamic economic backdrop and strengthened origination levels in 2025, we expect growth in balances to continue accelerating this year, driven primarily by retail banking at VCP and by the bank.

Speaker #1: The acceleration anticipated for loan growth and the shift in the mix towards retail should support NIM, despite potential policy rate reductions in soles and dollars down the line.

Speaker #1: Accordingly , we expect Nim to stand between 6.4 to 6.7% . The cost of risk guidance is between 1.7% and 2.1% . This range reflects the 2025 improvement in asset quality indicators , as well as the shift of our loan portfolio mix towards higher yielding segments , given expected dynamics for Nim and cost of risk .

Gianfranco Ferrari: This range reflects the 2025 improvements in asset quality indicators, as well as the shift of our loan portfolio mix towards higher yielding segments. Given the expected dynamics for NIM and cost of risk, risk-adjusted NIM should stand between 5.3% and 5.6%. In 2026, we will continue to invest in data transformation and disruptive initiatives to bolster our long-term competitive position, but we expect some of the efficiencies from scale to begin to materialize. Given that, we expect the 2026 efficiency ratio to be situated between 45% and 46.5%. Regarding non-interest income, we expect the income growth to pick up and stand in the low double digits in 2026, as activity accelerates and our efforts to further diversify sources of income continue to gain traction.

Alejandro Pérez-Reyes: This range reflects the 2025 improvements in asset quality indicators, as well as the shift of our loan portfolio mix towards higher yielding segments. Given the expected dynamics for NIM and cost of risk, risk-adjusted NIM should stand between 5.3% and 5.6%. In 2026, we will continue to invest in data transformation and disruptive initiatives to bolster our long-term competitive position, but we expect some of the efficiencies from scale to begin to materialize. Given that, we expect the 2026 efficiency ratio to be situated between 45% and 46.5%. Regarding non-interest income, we expect the income growth to pick up and stand in the low double digits in 2026, as activity accelerates and our efforts to further diversify sources of income continue to gain traction.

Speaker #1: Risk adjusted Nim should stand between 5.3 and 5.6% in 2026 . We will continue to invest in digital transformation and disruptive initiatives to bolster our long term competitive position , but we expect some of the efficiencies from scale to begin to materialize .

Speaker #1: Given that we expect the 2026 efficiency ratio to be situated between 45% and 46.5%. Regarding non-interest income, we expect fee income growth to pick up and stand in the low double digits in 2026 as activity accelerates and our efforts to further diversify sources of income continue to gain traction.

Speaker #1: Although our underlying insurance business is expected to perform solidly in 2026 , the insurance underwriting results , which was bolstered by extraordinary reversals for the DNC and business in 2025 , is expected to drop by high single digits , excluding the DNS business .

Gianfranco Ferrari: Although our underlying insurance business is expected to perform solidly in 2026, the insurance underwriting results, which was bolstered by extraordinary reversals for the DNS and its business in 2025, is expected to drop by high single digits. Excluding the DNS business, the result will grow by high single digits. Finally, we expect our 2026 ROE to stand at around 19.5%. This year reflects both solid core performance, sustained discipline on the risk front, and continued revenue diversification. While local political uncertainties remain, we believe the fundamentals are in place to support this level of profitability. With these comments, I would like to open the Q&A session.

Alejandro Pérez-Reyes: Although our underlying insurance business is expected to perform solidly in 2026, the insurance underwriting results, which was bolstered by extraordinary reversals for the DNS and its business in 2025, is expected to drop by high single digits. Excluding the DNS business, the result will grow by high single digits. Finally, we expect our 2026 ROE to stand at around 19.5%. This year reflects both solid core performance, sustained discipline on the risk front, and continued revenue diversification. While local political uncertainties remain, we believe the fundamentals are in place to support this level of profitability. With these comments, I would like to open the Q&A session.

Speaker #1: The result will grow by high single digits. Finally, we expect our 2026 ROE to stand at around 19.5%. This figure reflects both solid core performance, sustained discipline on the risk front, and continued revenue diversification.

Speaker #1: While local political uncertainties remain, we believe the fundamentals are in place to support this level of profitability. With these comments, I would like to open the Q&A session.

Speaker #2: We will now begin the question and answer session . To ask a question , you may press star , then one on your touch tone phone .

Milagros Cigüeñas: We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star then two. Please limit yourself to one question and one follow-up. Our first question comes from Ernesto Gabilondo from Bank of America. Please go ahead.

Speaker #2: If you are using a speakerphone , please pick up your handset before pressing the keys . If at any time your question has been addressed and you would like to withdraw the question , please press star then two please limit yourself to one question and one follow up Our first question comes from Ernesto Gabilondo from Bank of America .

Speaker #2: Please go ahead

Speaker #3: Thank you . Hi . Good morning . Gianfranco Casas Alejandro César , Francesca and Milagros . And good morning to the rest of your team .

[Analyst] (Bank of America): Thank you. Hi, good morning, Gianfranco, Alejandro, Cesar, Francesca, and Milagros, and good morning to the rest of your team. Thanks for the opportunity to ask questions. My first question will be on the political outlook. Can you provide us with some update on the latest polls? What is the next date that we should be monitoring? I was just looking to the Ipsos survey that was published some minutes ago, and López Aliaga is leading the polls. So any color on who are the other potential candidates, what are the main proposals so far, will be very helpful, especially as we are just 2 months for the election, right? And also related to this, when those Peruvians renovate Congress members, I think it will also be interesting.

Ernesto Gabilondo: Thank you. Hi, good morning, Gianfranco, Alejandro, Cesar, Francesca, and Milagros, and good morning to the rest of your team. Thanks for the opportunity to ask questions. My first question will be on the political outlook. Can you provide us with some update on the latest polls? What is the next date that we should be monitoring? I was just looking to the Ipsos survey that was published some minutes ago, and López Aliaga is leading the polls. So any color on who are the other potential candidates, what are the main proposals so far, will be very helpful, especially as we are just 2 months for the election, right? And also related to this, when those Peruvians renovate Congress members, I think it will also be interesting.

Speaker #3: Thanks for the opportunity to ask questions. My first question will be on the political outlook. Can you provide us with some update on the latest polls?

Speaker #3: What is the next date that we should be monitoring? I was just looking at the Ipsos survey that was published some minutes ago, and Lopez Aliaga is leading the polls.

Speaker #3: So any color on who are the other potential candidates ? What are the main proposals so far ? It will be very helpful , especially as we are just two months for for the election .

Speaker #3: Right. And also, related to this, when those Peru renovate Congress members, I think it will also be interesting, and then I will ask my second question after your response.

[Analyst] (Bank of America): And then I will ask my second question after your response. Thank you.

Ernesto Gabilondo: And then I will ask my second question after your response. Thank you.

Speaker #3: Thank you .

Gianfranco Ferrari: Sure. Good morning, Ernesto. This is Gianfranco. Yes, we just read the... I believe it's the same poll. Yes, López Aliaga is leading with 12%. In the second place is Mrs. Keiko Fujimori at 8%. And there's like a, I believe it's four candidates that are basically tied at 4%. Sorry, I said four percent, Keiko Fujimori is 8%, and four percent, there are four candidates around 4%. I would say that both Mr. Aliaga and Mrs. Fujimori have pro-market the economic plans or government plans. Having said that, the issues that they're still between undecided and people that say that they will vote blank, it's around 42%, which is very high still.

Speaker #4: Good . Good morning , Ernesto and Franco . Yes , we just we read the I believe it's the same poll . Yes .

Speaker #4: Lopez Aliaga is is leading with 12% . The in the second places in Mrs. Keiko Fujimori at 8% . And there's like a I believe it's four candidates that are basically tied at 4% .

Speaker #4: Sorry, I said 4% is 8% and 4%. There are four candidates around 4%. I would say that both Mr. Aliaga and Mrs. Fujimori have pro-market economic plans or government plans.

Speaker #4: Having said that, the issue is that there's still, between undecided and people that say that they will vote blank, it's around 42%, which is very high still.

Speaker #4: So I don't know , two months away from from less than two months , actually away from the elections at that number is still very high .

Gianfranco Ferrari: So we're, I don't know, two months away from the elections, less than two months, actually, away from the elections, and that number is still very high. So the level of uncertainty is still there. That's, that's, I would say that's the environment. We should have polls again in maybe a couple of weeks. We hope that those 42 percent of, let's say, undecided, start to decide what their or tend to, what their decision is, and we'll have more clarity in maybe 15 days. Regarding the other part of the question, and I would say, I believe we've talked about it before, the positive side of this new election is that we're going back to a dual chamber with a Senate and Congress.

Speaker #4: So the level of uncertainty is still there. So that's, that's—I would say that's the environment. We should have polls again in maybe a couple of weeks.

Speaker #4: We hope those those 42% of let's say undecided start to decide what their hotel to what their decision is . And we'll have more clarity in maybe 15 days regarding the the other part of the question , and I would say , I believe we've talked about it before , the positive side of this new election is that we're going back to a dual chamber with Senate and Congress .

Gianfranco Ferrari: We expect that to provide more, I would say, stability in terms of the political environment going forward. On top of that, there's some

Speaker #4: We expect that to provide more . I would say stability in terms of the political environment going forward . On top of that , there's there's some thresholds that the parties need to reach in order to get seats at either the the Congress or Senate .

Gianfranco Ferrari: We expect that to provide more, I would say, stability in terms of the political environment going forward. On top of that, there's some

Gianfranco Ferrari: ... thresholds that the parties need to reach in order to get seats at either the Congress or Senate. So overall, we see, regardless of who becomes president, we see that the new political structure between executive power and legislative power should provide more stability for the country going forward.

Speaker #4: So overall , we see , regardless of who becomes president , we see that the the new structure , political structure between executive power and legislative power should be should provide more stability for the country going forward .

Speaker #3: Perfect . Just a follow up on this one . When do we know it will be like the final candidate ? I don't know if you already have the candidates or not , and also on this dual chamber with the Senate and Congress The vote will also happen in April .

[Analyst] (Bank of America): Perfect. Just, a follow-up on this one. When do we know who will be, like, the final candidate? I don't know if you already have the candidates or not. And also, on this dual chamber with the Senate and Congress, the vote will also happen in April, or when should we expect that?

Ernesto Gabilondo: Perfect. Just, a follow-up on this one. When do we know who will be, like, the final candidate? I don't know if you already have the candidates or not. And also, on this dual chamber with the Senate and Congress, the vote will also happen in April, or when should we expect that?

Speaker #3: Or when should we expect that?

Speaker #4: Yes , yes . So so starting with your second part of the question . Yes . Everything is voted on April 12th . Yes .

Gianfranco Ferrari: Yes, yes. So, starting with your second part of the question, yes, everything is voted on 12 April, I believe. Yes, 12 April. We already have the candidates, the final candidates. Don't ask me who they are, because they are, like, 35 or 37.

Speaker #4: April 12th . We already have the candidates . The final candidates . Don't ask me who they are because they are like 35 or 37 .

Speaker #4: So, so yeah, that's the situation.

[Analyst] (Bank of America): Mm-hmm.

Ernesto Gabilondo: Mm-hmm.

Gianfranco Ferrari: So yeah, that's the situation.

Speaker #3: Okay . Excellent . Thank you . So then my second question is on your opex growth . So opex came at double digit during the quarter .

[Analyst] (Bank of America): Okay. No, excellent. Thank you. So then my second question is on your OpEx growth. So OpEx came at double-digit during the quarter and the year. I believe you will continue with different strategic investments and strengthening Yape. But should we expect a little bit more moderate OpEx growth this year when compared to 2025? And also related to this question, all the digital initiatives, you are targeting to represent like 10% of adjusted revenues. But how are you thinking that could be moving, going into 2027, 2028? I don't know if it's still too soon to provide a potential target for those years. And also related to this, how should we think about non-credit-related revenues or fees, with all these digital initiatives paying off?

Ernesto Gabilondo: Okay. No, excellent. Thank you. So then my second question is on your OpEx growth. So OpEx came at double-digit during the quarter and the year. I believe you will continue with different strategic investments and strengthening Yape. But should we expect a little bit more moderate OpEx growth this year when compared to 2025? And also related to this question, all the digital initiatives, you are targeting to represent like 10% of adjusted revenues. But how are you thinking that could be moving, going into 2027, 2028? I don't know if it's still too soon to provide a potential target for those years. And also related to this, how should we think about non-credit-related revenues or fees, with all these digital initiatives paying off?

Speaker #3: And the year. I believe you will continue with different strategic investments and strategic JVs, but should we expect a little bit more moderate opex growth this year when compared to 2020?

Speaker #3: Five, and also related to this question: of all the digital initiatives, you are targeting to represent like 10% of adjusted revenues. But how are you thinking that could be moving going into 2027, 2028?

Speaker #3: I don't know if it's still too soon to provide a potential target for those years. Also, related to this, how should we think about non-credit related revenues or fees with all these digital initiatives paying off?

Speaker #4: I hello , sure .

Alejandro Pérez-Reyes: Yeah. Alejandro? Sure. Hi, Ernesto. This is Alejandro. Thanks for the question. So regarding operating expenses, they've grown, as you mentioned. They are within our guidance. The level of expenses is related to the investments we're doing, both in innovation and in the core business to better serve our clients, and I mentioned a few of those before. Going forward, we do expect to continue investing in these different initiatives. Having said that, I think we're gonna start seeing more and more the operational leverage of these initiatives.

Speaker #1: Hi , this is Alejandro . Thanks for the question . So regarding operating expenses , the Dave grown , as you mentioned , they are within our guidance .

Speaker #1: The level of expenses is related to the investments we're making both in innovation and in the core business to better serve our clients.

Speaker #1: And I mentioned a few of those before Going forward , we do expect to continue investing in in in these different initiatives . Having said that , I think we're going to start seeing more and more the operational leverage of these initiatives .

Alejandro Pérez-Reyes: Even right now, I've got it to a lower number for next year, and if you remember, in the Investor Day, we guided to a midterm, which is a 2 to 3-year term, really, of 42% in cost to income. So yes, we are expecting the increase in income that is coming from all these initiatives to start to be felt in the ratio. So that's what we're expecting. As for going forward, we haven't really guided a number on the impact. I mean, I think we're gonna get to the 10% this year, as has been our appetite, and that should be achievable.

Speaker #1: Even right now , I've got it to a lower number for next year . And if you remember , in the Investor Day , we guided to a mid-term , which is a 2 to 3 year term , really , of 42% in cost to income .

Speaker #1: So yes, we are expecting the increase in income that is coming from all these initiatives to start to be felt in the ratio.

Speaker #1: So that's what we're expecting . As for as for going forward , we haven't really guided a number on the impact . I mean , I think we're going to get to the 10% this year as it been our appetite , and that should be achievable .

Speaker #1: And we haven't yet guided for a number going forward. But we do expect the current initiatives to continue to scale and continue to bring more income into Credicorp.

Alejandro Pérez-Reyes: We haven't yet guided for a number going forward, but we do expect the current initiatives to continue to scale and continue to bring more income in into Credicorp. So the reason why this changes is that if you were to have one of the initiatives leave what we call innovation, then that changes the actual number. But we haven't yet provided a new number for that, but all the current initiatives are scaling and growing in an important way.

Speaker #1: So the reason why there's changes is that if you had one , if you were to have one of the initiatives leave what we call innovation , then that changes the actual number .

Speaker #1: But we haven't yet provided a new number for that. But all the current initiatives are scaling and growing in an important way.

[Analyst] (Bank of America): Perfect. Now, thank you very much. And just in terms of fees, given the monetization and Yape, should we expect that line in the double digits?

Ernesto Gabilondo: Perfect. Now, thank you very much. And just in terms of fees, given the monetization and Yape, should we expect that line in the double digits?

Speaker #3: Thank you very much . And just in terms of fees , given the monetization and yep , should we expect that line in the double digit ?

Speaker #1: Yes . As I think I mentioned in my speech , we are expecting it to be the double digit area , the growth in fee income .

Alejandro Pérez-Reyes: Yes. As I think I mentioned in my speech, we are expecting it to be in the double-digit area, the growth in fee income.

Speaker #3: Perfect. Thank you very much.

[Analyst] (Bank of America): Perfect. Thank you very much.

Ernesto Gabilondo: Perfect. Thank you very much.

Speaker #1: Thank you

Alejandro Pérez-Reyes: Thank you.

Speaker #2: Our next question comes from Brian Flores with Citibank. Please go ahead.

Milagros Cigüeñas: Our next question comes from Brian Flores with Citibank. Please go ahead.

Speaker #5: Hi . Good morning . Thank you for the opportunity . I have a question regarding the app . Right . Because lending now is representing over 20% of the revenue , which is more than double the contribution from the last quarter of 24 .

[Analyst] (Citi): Hi, team. Good morning. Thank you for the opportunity. I have a question regarding Yape, right? Because lending now is representing over 20% of the revenue, which is more than double the contribution from the last quarter of 2024. And I think you have mentioned that the portfolio is shifting towards multi-installments, right? With longer durations. So just wanted to understand, connect this with cost of risk. Is this shift in duration affecting the provisioning modeling for 2026? And also, I don't know if you could disclose the ROE target for Yape's financial business segment versus the transactional side. Thank you.

Brian Flores: Hi, team. Good morning. Thank you for the opportunity. I have a question regarding Yape, right? Because lending now is representing over 20% of the revenue, which is more than double the contribution from the last quarter of 2024. And I think you have mentioned that the portfolio is shifting towards multi-installments, right? With longer durations. So just wanted to understand, connect this with cost of risk. Is this shift in duration affecting the provisioning modeling for 2026? And also, I don't know if you could disclose the ROE target for Yape's financial business segment versus the transactional side. Thank you.

Speaker #5: And I think you have mentioned that the portfolio is shifting towards multi-installments, right? We're seeing longer durations. So I just wanted to understand and connect this with cost of risk.

Speaker #5: Is this shift in duration affecting the provisioning modeling for 2026? And also, I don't know if you could disclose the ROE targets for Yap's financial business segment versus the transactional side.

Speaker #5: Thank you .

Gianfranco Ferrari: Yeah. Maybe let me take the second part of the question and ask Cesar to answer the first one. We do not provide that breakdown regarding Yape. And maybe as a segue to Cesar's answer, bear in mind risk-adjusted NIM, not only cost of risk. And in the Yape business, it's extremely relevant, because yes, the cost of risk is much higher than the one of the traditional portfolio of the bank, but the risk-adjusted NIM is also much higher. So Cesar, I will ask you-

Speaker #4: Maybe let me take the second part of the question, and I'll ask Alejandro to answer the first one. We do not provide that breakdown regarding Yap.

Speaker #4: And maybe as a segway to to answer Bear in mind risk adjusted Nim , not only cost of risk and in the business extremely relevant because yes , the cost of risk is is much higher than the one of the traditional portfolio of the of the of the bank .

Speaker #4: But the risk-adjusted NIM is also much higher. So I will ask you to—

Alejandro Pérez-Reyes: Yes.

Gianfranco Ferrari: Ask you to-

Speaker #6: Thank you for the question . Actually , what JP is evolving with different lines at the beginning , the emphasis was in mono with a lot of experiments expanding the number of clients with very short term and small loans .

Alejandro Pérez-Reyes: No, thank you for the question. Actually, what Yape is evolving with different lines. At the beginning, the emphasis was in mono quota, with a lot of experiments, expanding the number of clients with very short-term and small loans. And as we understand the behavior of these clients, we are emphasizing now the multi-quota that helps to build up portfolios much faster because you increase the duration from less than one month to more than six months, and also increase the amount. And the expected cost of risk should remain very controlled, because as a prerequisite, we began with higher risk short-term duration loans. And as we mentioned previously, understand the behavior, we scale the size and duration. And also, we are increasing the participation in a small PYME business with very successful results.

Speaker #6: And as we understand the behavior of these clients, we are emphasizing now the multi-quarter that helps to build up portfolios much faster, because you increase the duration from less than one month to more than six months.

Speaker #6: And also increase the amount and the expected cost of risk should remain very controlled because as a prerequisite , we also we began with a higher risk short term duration loans .

Speaker #6: And as we mentioned previously , understand the behavior . We scale the we scale the size and duration . And also we are also increasing the participation in a small business with very successful results .

Speaker #6: So all in all , the risk adjusted mean should remain a in comparable levels . We probably different composition of the cost of risk and the interest rates a little bit less rates a little less .

Alejandro Pérez-Reyes: So all in all, the risk-adjusted NIMs should remain in comparable levels, with probably different composition of the cost of risk and the interest rates. A little bit less rate, a little less also cost of risk in the higher, longer loans.

Speaker #6: Also, cost of risk in the higher, longer loans.

Speaker #5: No perfect . And if I may follow up , I think last quarter you mentioned that generally during election years , we have a first part of the of the year that tends to be a bit slower , but I would say maybe the end of the year also was with a very I would say healthy pace of growth .

[Analyst] (Citi): No, perfect. And Gianfranco, if I may follow up, I think last quarter, you mentioned that generally during election years, we have a first, part of the, of the year that tends to be a bit slower. But I would say maybe the end of the year also was with a very, I would say, healthy pace of growth. So just wanted to, to check here if you're sensing here that maybe we could have upside risks for growth, and if we are, in line or a bit ahead in terms of growth at this point of the year, based on or comparing to your expectations?

Brian Flores: No, perfect. And Gianfranco, if I may follow up, I think last quarter, you mentioned that generally during election years, we have a first, part of the, of the year that tends to be a bit slower. But I would say maybe the end of the year also was with a very, I would say, healthy pace of growth. So just wanted to, to check here if you're sensing here that maybe we could have upside risks for growth, and if we are, in line or a bit ahead in terms of growth at this point of the year, based on or comparing to your expectations?

Speaker #5: So I just wanted to to check here . If you're sensing here that maybe we could have upside risks for growth . And if we are in line or a bit ahead in terms of growth at this point of the year , based on or comparing to your expectations .

Speaker #4: Great question . And I believe you provided the answer . Yes . This I yes , we actually the last call we we shared what our chief economist and the analysis our chief economist did a few months ago regarding your your the theme this this year so far that that's not happening .

Gianfranco Ferrari: Great question. I believe you provided the answer. Yes, with this, and actually, the last call we shared the analysis our chief economist did a few months ago regarding your theme this year so far, that's not happening. The trend we've seen in terms of economic activity is like this wasn't an election year. And actually, I was reading earlier a report by Apoyo Consultoría, which is one of the most renowned think tanks in Peru. The level of consumer confidence in February 2026 is the highest since February 2020, so right before the pandemic.

Speaker #4: The trend we're seeing in terms of economic activity is like there wasn't—this wasn't an election year. And actually, I was reading earlier a report by Apollo Consultoria, which is one of the most renowned think tanks in Peru.

Speaker #4: And the level of consumer confidence in February of 2026 is the highest since February of 2020 . So before the pandemic . So yes , the positive sentiment are around consumers real salaries increased 3.7% last year .

Gianfranco Ferrari: So yes, the positive sentiment around consumers. Real salaries increased 3.7% last year. Formal employment increased 6% last year. So a long answer to your question, but the short answer is yes.

Speaker #4: Formal right employment increased 6% last year. So, a long answer to your question, but the short answer is yes.

Speaker #5: Perfect . Thank you

[Analyst] (Citi): Perfect. Thank you.

Brian Flores: Perfect. Thank you.

Speaker #2: Our next question comes from Tito Libardo with Goldman Sachs. Please go ahead.

Milagros Cigüeñas: Our next question comes from Tito Labarta with Goldman Sachs. Please go ahead.

Speaker #7: Hi . Good morning everyone . Thank you for the call and taking my question . I guess first , another follow up on JP , just because , I mean , you have guided for revenues tripling by 2028 , but just how do you think about expenses for JP ?

[Analyst] (Goldman Sachs): Hi, good morning, everyone. Thank you for the call and taking my question. I guess first, another follow-up on Yape, just because, I mean, you have guided for revenues tripling by 2028. But just how do you think about expenses for Yape? I assume they'll grow less than that. I don't know if you have any official guidance for how much expenses from Yape should grow over this time. And I guess where I'm trying to get to, I mean, ultimately, I think Yape should be accretive to ROE. At the same time, you've mentioned you will continue to invest in digital initiatives. So net-net, if you think about Yape and then other digital initiatives, combined with the investments in one, and Yape become more profitable, that should be accretive to ROE. I don't know how much-

Tito Labarta: Hi, good morning, everyone. Thank you for the call and taking my question. I guess first, another follow-up on Yape, just because, I mean, you have guided for revenues tripling by 2028. But just how do you think about expenses for Yape? I assume they'll grow less than that. I don't know if you have any official guidance for how much expenses from Yape should grow over this time. And I guess where I'm trying to get to, I mean, ultimately, I think Yape should be accretive to ROE. At the same time, you've mentioned you will continue to invest in digital initiatives. So net-net, if you think about Yape and then other digital initiatives, combined with the investments in one, and Yape become more profitable, that should be accretive to ROE. I don't know how much-

Speaker #7: I assume they'll grow less than that. I don't know if you have any official guidance for how much expenses from JP should grow over this time.

Speaker #7: And I guess what I'm trying to get to , I mean , ultimately , I think it should be accretive to ROE at the same time , you mentioned you will continue to invest in digital initiatives .

Speaker #7: So net-net, if you think about JP and then other digital initiatives combined with the investments in One, and you become more profitable, that should be accretive to ROE.

Speaker #7: I don't know how much , but how much do the investments offset to some extent , so net net , how should we think about the potential ROE from those two things .

Gianfranco Ferrari: Yeah, but,

[Analyst] (Goldman Sachs): How much do the investments offset to some extent? So, like, net-net, how should we think about the potential accretions to ROE from those two things?

Tito Labarta: How much do the investments offset to some extent? So, like, net-net, how should we think about the potential accretions to ROE from those two things?

Speaker #4: Yeah . Good morning to you . Yeah you're right . The if you may recall about four years I mean if it's four years ago and one digital day , we said that the ROE from digital initiatives should be should be the neutral by 2025 .

Gianfranco Ferrari: Yeah. Good morning, Tito. Yeah, you're right. If you may recall, about four, I believe it's four years ago, and one digital day, we said that the ROE from digital initiatives to be should be neutral by 2025, and should start to be positive by 2026. And definitely, we're gonna reach that target. So this year we expect the digital initiatives overall, so obviously, Yape being positive, others being negative, but overall, it's gonna be positive starting this year. And the trend is that that level of positive ROE should increase during the upcoming years.

Speaker #4: And should start to be positive by 2026. And definitely, we're going to reach that target. So this year, we expect the digital initiatives overall.

Speaker #4: So obviously being positive , others being negative , but overall it's going to be positive starting this year . And the trend is that that that level of of positive ROE should increase during the upcoming years .

Speaker #4: Yeah .

Alejandro Pérez-Reyes: Yeah. Hi, hi, Tito. This is Alejandro. Just to complement Gianfranco, talking about costs, the speed at which revenue per month is increasing, is much higher than the cost per month. And so Yape today has still a high cost to income, but we expect it in the next couple of years to actually reach levels below current, BCP's, cost to income. BCP ex Yape's cost to income. So it, it should start to have a, a very positive impact in cost to income in the next couple of years.

Speaker #1: Hi people . Alejandro . Just to compliment Franco and talking about costs , the speed that which at which revenue per mile is increasing each much higher than the cost per mile .

Speaker #1: And so JP today has still a high cost to income . But we expect it in the next couple of years to actually reach levels below current BK cost to income .

Speaker #1: BCP cost to income. So it should start to have a very positive impact on cost to income in the next couple of years.

Speaker #7: Okay , great . Thanks Jean-Francois . And Alejandro . And just in terms of quantifying , I mean , is it maybe 50 to 100 bits per year , roughly more or less .

[Analyst] (Goldman Sachs): Okay, great. No, thanks, Gianfranco and Alejandro. And just in terms of quantifying, I mean, is it maybe 50 to 100 basis points per year, roughly, more or less? I mean, just given, I think, excluding some extraordinary items in 2025, your ROE is around 18.5%.

Tito Labarta: Okay, great. No, thanks, Gianfranco and Alejandro. And just in terms of quantifying, I mean, is it maybe 50 to 100 basis points per year, roughly, more or less? I mean, just given, I think, excluding some extraordinary items in 2025, your ROE is around 18.5%.

Speaker #7: I mean, just given—I think, excluding some extraordinary items—in '25, ROE is around 18. ROE for '19, 5 ROE.

Gianfranco Ferrari: ROE, uh-

[Analyst] (Goldman Sachs): You're guiding for 19.5.

Tito Labarta: You're guiding for 19.5.

Gianfranco Ferrari: ROE, you mean?

Speaker #4: You mean .

[Analyst] (Goldman Sachs): Mm-hmm. Yes, the ROE sort of accretion from all the digital-

Tito Labarta: Mm-hmm. Yes, the ROE sort of accretion from all the digital-

Speaker #7: Yeah, ROE, sort of accretion from.

Speaker #4: All . It's a good guess . Yeah , it's a good guess . Yes . Within that range .

Gianfranco Ferrari: That's, it's a good guess. Yeah, it's a good guess. Yes, within that range.

Speaker #7: Okay okay . Perfect . Great . No , thanks . Gianfranco Casas . Alejandro .

[Analyst] (Goldman Sachs): Okay. Okay, perfect. Great. No, thanks, Gianfranco. Thanks, Alejandro.

Tito Labarta: Okay. Okay, perfect. Great. No, thanks, Gianfranco. Thanks, Alejandro.

Speaker #1: Thank you

Alejandro Pérez-Reyes: Thank you.

Speaker #2: Our next question comes from Renato Meloni with Autonomous Research. Please go ahead.

Milagros Cigüeñas: Our next question comes from Renato Meloni with Autonomous Research. Please go ahead.

Speaker #8: Hi , everyone . Thanks here for for taking the questions . I would like to to stay in this theme of Roe and explore a little bit here .

[Analyst] (Autonomous Research): ... Hi, everyone. Thanks here for taking the questions. I would like to stay in this theme of ROE and explore a little bit here, the guidance in your midterm ROE. I mean, you're already running almost 19.5, which you guide, right? And you're expecting loan growth, acceleration, margin expansion this year, but your OpEx is essentially eating out. And I understand you're making these additional investments, but when do you expect you have the potential to make much larger midterm ROEs, right? So when we're gonna start seeing that, or you think that the continued investment in disruptive initiatives will just maintain the ROE long term around this 19.5 percent? Because I think there might be some decent upside here.

Renato Meloni: ... Hi, everyone. Thanks here for taking the questions. I would like to stay in this theme of ROE and explore a little bit here, the guidance in your midterm ROE. I mean, you're already running almost 19.5, which you guide, right? And you're expecting loan growth, acceleration, margin expansion this year, but your OpEx is essentially eating out. And I understand you're making these additional investments, but when do you expect you have the potential to make much larger midterm ROEs, right? So when we're gonna start seeing that, or you think that the continued investment in disruptive initiatives will just maintain the ROE long term around this 19.5 percent? Because I think there might be some decent upside here.

Speaker #8: The guidance and your mid-term ROE . I mean , you're already running almost a 19.5 with your guide , right ? In your expecting loan growth , acceleration , margin expansion this year .

Speaker #8: But your opex is essentially eating out. And I understand you're making these additional investments, but when do you expect you have the potential to make much larger mid-term ROE?

Speaker #8: Right. So, when are we going to start seeing that? Or do you think that the continued investment in disruptive initiatives will just maintain the ROE long term around this 19.5%? Because I think there might be some decent upside here.

Speaker #4: Yes .

Operator: Yes, Alejandro?

Gianfranco Ferrari: Yes, Alejandro?

Speaker #1: Yes. Hi, Ronaldo, thanks for the question and for the opportunity to address that subject, which has come up actually in our conversations.

Alejandro Pérez-Reyes: Yes. Hi, Ronaldo. Thanks, thanks for the question, and for the opportunity to address that target that has come up actually in, in our conversations. So we guided for this midterm ROE in October of last year. And one clarification, when we're thinking about midterm, we're thinking two to three years, not necessarily the, the potential of the of Credicorp going forward. And we guided that, I would say, it was a conservative guidance, given the fact that we were entering into a, an electoral cycle in Latin America, you know? So it, it's already been. We've already seen elections in Bolivia and in, in Chile with positive results, and we are right, close to seeing elections in, Peru and Colombia in the next few months.

Speaker #1: So we guided for this mid-term ROE in October of last year . And one clarification we were thinking about mid-term . We're thinking 2 to 3 years , not necessarily the the potential of the credit card going forward .

Speaker #1: And we guided that . I would say as a conservative guidance , given the fact that we were entering into a electoral cycle in Latin America , you know , so it's already been we've already seen elections in Bolivia and in Chile with positive results .

Speaker #1: And we are right close to seeing elections in Peru and Colombia in the next few months. So we intend to come back to the market and revise that.

Alejandro Pérez-Reyes: So, we intend to come back to the market and revise that after that cycle, so probably in the call in August. But given what we're seeing, given the potential of the economy, and the positive trend, we do believe we're gonna come back with something north of the 20% mark. But I don't wanna give the exact number right now until we've run the numbers and seen the outcome of the elections, which are, of course, big events for the next few years.

Speaker #1: After that cycle . So probably the calling in August . But given what we're seeing , given the potential of the economy and the positive trends , we do believe we're going to come back with something north of the 20% mark .

Speaker #1: But I don't want to give the exact number right now until we run the numbers and see and see the outcome of the elections , which are of course , big events for for the next few years .

Speaker #8: Perfect . That's clear . And if you allow me to follow up so structurally , where maybe like five years down the line when the disruptive investments normalize , where , where do you see your cost to income ratio ?

[Analyst] (Autonomous Research): Perfect. That's clear. And if you allow me to follow up, so structurally, where maybe like five years down the line, when the disruptive investments normalize, where, where do you see your cost to income ratio?

Renato Meloni: Perfect. That's clear. And if you allow me to follow up, so structurally, where maybe like five years down the line, when the disruptive investments normalize, where, where do you see your cost to income ratio?

Speaker #1: Well , as I mentioned , in the next 2 to 3 years , we're thinking about the 42% mark . We will probably be revising that over time .

Alejandro Pérez-Reyes: Well, as I mentioned, in the next two to three years, we're thinking about the 42% mark. We'll probably be revising that over time and giving closer updates, but that's the last number we have right now. Because, of course, it's also gonna depend on other potential investments that we do, so it's hard to tell. If we were talking about just the current portfolio, of course, you would see a decrease in that number going forward. But-

Speaker #1: And giving a closer update, but that's the last number we have right now, because of course it's also going to depend on other potential investments that we do.

Speaker #1: So it's hard to tell if we were talking about just the current portfolio . Of course , you would see a decrease in that number going forward , but we'll have to see what comes down the down the pipeline .

[Analyst] (Autonomous Research): Mm-hmm.

Renato Meloni: Mm-hmm.

Alejandro Pérez-Reyes: We'll have to see what comes down the pipeline.

Speaker #8: Understood . Thanks very

[Analyst] (Autonomous Research): Understood. Thanks very much.

Renato Meloni: Understood. Thanks very much.

Speaker #1: Thank you

Alejandro Pérez-Reyes: Thank you.

Milagros Cigüeñas: Our next question comes from Carlos Gomez, with HSBC. Please go ahead.

Speaker #2: Our next question comes from Carlos Gomez with HSBC. Please go ahead.

Speaker #9: Hello . Good morning and thank you for taking my question . I wanted to ask you about your exposure to Rutas de Lima , the the corporate in Lima and whether you see any potential for recovery from that particular credit .

Carlos Gomez-Lopez: Hello, good morning, and thank you for taking my question. I want to ask you about your exposure to Rutas de Lima, the corporate in, in Lima, and whether you see any potential for recovery from that particular credit, if you have any exposure. And second, to what degree do you think that the positive performance of the economy or of the business has been helped by the withdrawals from the pension fund? And could there be a break on activity, when they are finished this year or next? Thank you.

Speaker #9: If you have any exposure. And second, to what degree do you think that the positive performance of the economy or of the business has been helped by the withdrawals from the pension fund?

Speaker #9: And could there be a brake on activity when they are finished this year or next? Thank you.

Speaker #4: Maybe .

Operator: Maybe Raul, or do you want to do this?

Gianfranco Ferrari: Maybe Raul, or do you want to do this?

Speaker #10: Yes , yes , I can comment about Lima . This is a position that represents less than 1% of our portfolio . This opposition , which currently provisioned at 80% , were not accruing interest and they are currently a couple of arbitration processes in the US .

Alejandro Pérez-Reyes: Yes, yes, this is Raul Monterossa can comment about Rutas de Lima. This is a position that represents less than 1% of our portfolio. This is a position which currently provisioned at 80%. We're not accruing interest. And there are currently a couple of arbitration processes in the US, that if successful, we think that it will take a long time, but it will be benefit the the actual position that we have. We do expect in the near short term, a payment that could be somewhere in around between 5% and 10% of the bond. So. And we do not expect further deterioration in the position that we have right now.

[Analyst] (Credicorp): Yes, yes, this is Raul Monterossa can comment about Rutas de Lima. This is a position that represents less than 1% of our portfolio. This is a position which currently provisioned at 80%. We're not accruing interest. And there are currently a couple of arbitration processes in the US, that if successful, we think that it will take a long time, but it will be benefit the the actual position that we have. We do expect in the near short term, a payment that could be somewhere in around between 5% and 10% of the bond. So. And we do not expect further deterioration in the position that we have right now.

Speaker #10: That is successful . We think that it will take a long time , but it will be a benefit . The the actual position that we have , we do expect in the near short term a payment that could be somewhere in around between 5 and 10% of the of the of the of the bonds .

Speaker #10: So, and we do not expect further deterioration—deterioration in the position that we have right now.

Speaker #4: Hello. Could you take us...

Operator: Alejandro, do you take it from here?

Gianfranco Ferrari: Alejandro, do you take it from here?

Alejandro Pérez-Reyes: Yes, sure. So, hi, Carlos. Going to the second part of the question. The withdrawal from the pension plan, of course, has, did have different types of impact. This withdrawal has been of $25 thousand million dollars, or $25 billion in US terms. We, as BCP, has captured a little north of $11 billion of those $25 billion. The payments are gonna continue until March, actually, there's the last payment is in March. And the effect in the economy, it depends on how much goes to consumption, but it certainly does help GDP.

Speaker #1: Sure . So so going to the second part of the question , the withdrawals from the pension plans , of course , have different types of , of of impacts .

Speaker #1: This withdrawal has been of $25,000 million, or $25 billion in US terms. We, as BCP, have captured a little north of $11 billion.

Speaker #1: Of those 25 billion , the payments are going to continue until this until March . Actually , there's the last payment is in March , and the effects in the economy , it depends on how much goes to consumption .

Speaker #1: But it certainly does help GDP . We have a calculation that again , take it understanding that not not necessarily everything is going to go into into consumption .

Alejandro Pérez-Reyes: We have a calculation that, again, taking the understanding that not necessarily everything is gonna go into consumption, but it will be around 0.4% of the impact on GDP, potentially, if everything went to consumption. And if you think about the impact on our business, we expect for 2026, an impact of around 0.5% on loans, I'm sorry, on deposits, on low-cost funding, so that's a positive result. And in the credit part, it could have a negative impact of around 0.4%. Those are our calculations, thinking about 2026. I mean, all in all, the short-term effects are positive, certainly not negative.

Speaker #1: But it would be around 0.4% of , of impact on , on GDP potentially if everything went to , to , to consumption .

Speaker #1: And if you think about the impact on our business , we expect for 2026 an impact of around 0.5% on loans . I'm sorry , on , on deposits , on low cost funding .

Speaker #1: So that's a positive result. And in the credit part, it could have a negative impact of around 0.4%. Those are calculations thinking about 2026.

Speaker #1: I mean all in all , the short term effects are positive . Certainly not negative . I think the main issue is the long term effects on on pensions and the Peruvian economy .

Alejandro Pérez-Reyes: I think the main issue is the long-term effect on pensions and the Peruvian economy, but in the short term, the impacts are not that material.

Speaker #1: But in the short term, the impacts are not that material.

Speaker #6: I'm probably on a small addition, also a reduction in cost of risk in a specific segment, particularly meat and the higher segment—individuals.

Eduardo Montero: And probably a small addition, also, reduction in Cost of Risk in a specific segment, particularly mid and higher segment individuals.

Speaker #9: Very clear. Thank you.

Carlos Gomez-Lopez: Very clear. Thank you.

Speaker #4: Thank you .

Eduardo Montero: Thank you.

Speaker #2: Our next question .

Milagros Cigüeñas: Our next question comes from-

Speaker #4: Comes sorry . Sorry Carlos Franco here . Just to clarify , Eduardo Monteiro from Brazil took the question regarding Lima because the only subsidiary at that has a position with Lima , which is less than 1% of the portfolio of Pacifico , is Pacifico BCP or BCP , nor any other subsidiary has a position in Lima .

Alejandro Pérez-Reyes: Sorry, sorry, Carlos. Gianfranco here. Just to clarify, Eduardo Montero from Pacífico took the question regarding Ruta de Lima, because the only subsidiary at Credicorp that has a position with Ruta de Lima, which is less than 1% of the portfolio of Pacífico, is Pacífico. BCP, or neither BCP nor any other subsidiary has a position in Ruta de Lima. Sorry.

Gianfranco Ferrari: Sorry, sorry, Carlos. Gianfranco here. Just to clarify, Eduardo Montero from Pacífico took the question regarding Ruta de Lima, because the only subsidiary at Credicorp that has a position with Ruta de Lima, which is less than 1% of the portfolio of Pacífico, is Pacífico. BCP, or neither BCP nor any other subsidiary has a position in Ruta de Lima. Sorry.

Speaker #4: Sorry .

Speaker #6: And we will. Over the last quarter,

Eduardo Montero: We were profitable over the last quarter.

Speaker #9: , that was that was good underwriting . Thank you .

Carlos Gomez-Lopez: That was, that was good underwriting. Thank you.

Speaker #4: Thank you

Alejandro Pérez-Reyes: Thank you.

Speaker #2: Our next question comes from Daniel Voss with Safra. Please go ahead.

Milagros Cigüeñas: Our next question comes from Daniel Voss with Safra. Please go ahead.

Speaker #11: Thank you . And hi everyone . Congrats on the the full year results . And also guidance . Thank you for the guidance on 2026 .

Daniel Vaz: Thank you, and hi, hi, everyone. Congrats on the full year results and also guidance. Thank you for the guidance on 2026. I'm looking to the loan growth. If we compare to 2025, you already grew 8.5%, if you exclude the impacts on the FX and also the Bolivia. And I'm seeing your 2026 guidance also, like, around 8.5%. And when I look at Peru's GDP, around 3.5, domestic consumption close to 5%. And also, if you take into consideration that you're accelerating in Mibanco, NPLs are in multi-year lows, BCP's consumer lending also growing above 10%. I mean, what are we missing here? What is currently holding overall credit below the double-digit level?

Speaker #11: I'm looking up to the loan growth . If we compare to 25 , you already grew 8.5% . If you exclude the impacts on on the effects and also the Bolivia and I'm seeing your 26 guidance .

Speaker #11: Also, like around 8.5%. And when I look at Peru's GDP, around 3.5%, domestic consumption is close to 5%. And also, if you take into consideration that you're accelerating in Banco NPLs and multi-year lows, BCP's consumer lending is also growing above 10%.

Speaker #11: I mean , what are we missing here ? What is currently holding overall credit below the double digit level ? I mean , what would need to change for you accelerate more meaningfully ?

Daniel Vaz: I mean, what would need to change for you to accelerate more meaningfully? Maybe, I don't know, middle market corporate loans or other segment that's pushing you behind. And if I may have a second follow-up, are you planning to open Yape's PNL and separate from BCP so we can have a clear, cleaner vision on the efficiency ratio and et cetera, for the... Yeah. Thank you.

Speaker #11: Maybe . I don't know , middle market corporate loans or other segment that's pushing you behind . And if I may have a second follow up , are you planning to open Yap's PNL and separate from BCP so you can have a clear , cleaner vision on the efficiency ratio and etc.

Speaker #11: for the . Yeah , thank you .

Speaker #1: Hi, Daniel. This is Alejandro. I'll take the first question, and thanks for asking the question because it will give us an opportunity to clarify something.

Alejandro Pérez-Reyes: Hi, Daniel, this is Alejandro. I'll take the first question, and thanks for asking the question, because it'll give us an opportunity to clarify something. The guidance we've just given is for all of Credicorp, and there is one particular book, which is the Bolivia book, where we are expecting a big... a potentially big impact from exchange rates. So basically, we believe Bolivia is in the right direction, but in order to move forward, it's probably gonna have to have some devaluation of the currency. And if that were to happen, that would impact our book, and that is considered in the 8.5. If you take BCP and Mibanco alone, we're expecting double-digit growth for this year in loans. And actually, at constant exchange rate, it's a little bit higher, around 11% for the year.

Speaker #1: The guidance we've just given is for all of Credicorp. And there is one particular book, which is the Bolivia book, where we are expecting a big, a potentially big, impact from exchange rates.

Speaker #1: So, basically, we believe Bolivia is headed in the right direction. But in order to move forward, we're probably going to have to have some devaluation of the currency.

Speaker #1: And if that were to happen , that would impact our book . And that is considered in the eight and a half . If you take BCP and Vivanco alone , we're expecting double digit growth for this year .

Speaker #1: In , in , in loans . And actually at constant exchange rate . It's a little bit higher around 11% for , for the year .

Speaker #1: So, we are expecting and seeing an acceleration in the market. We expect that to continue, and loan growth should be very strong this year.

Alejandro Pérez-Reyes: So we are expecting and seeing an acceleration in the market. We expect that to continue and loan growth should be very strong this year. But there's this particular headwind in Bolivia that will have an impact on the whole of Credicorp, when it materializes.

Speaker #1: But there's this particular headwind in Bolivia that will have an impact on the whole of Credicorp when it materializes.

Speaker #4: Regarding the maybe , maybe , maybe regarding the Yap question , the issue here is that JP is within BCP . So yap yap , as a institution does not exist .

Gianfranco Ferrari: Regarding the Yape, maybe, maybe, maybe regarding the Yape question, the issue is that Yape is within BCP. So Yape as a institution does not exist. So it's very hard to come up with a pure financial statement. But what we're working on is, in order to provide you with more information, working on how to provide more information, but all within the transparency we've always provided to the market. So that's a work in progress, and we may come up with something in that line in the future.

Speaker #4: So what we're currently . So it's very hard to come up with a financial pure financial statement . But what we're working on is in order to provide you with more information , is working on how to be to provide more , more information .

Speaker #4: But all all are within the transparency with always provided to the market . So that's a work in progress . And we may come up , come up with something in that line in the future

Speaker #11: All right. Thank you. Thank you, Alejandro. Thank you, everyone.

Daniel Vaz: All right. Thank you. Thank you, Alejandro. Thank you, everyone.

Speaker #1: Thank you

Eduardo Montero: Thank you.

Speaker #2: Our next question comes from Andres Soto with Santander. Please go ahead.

Milagros Cigüeñas: Our next question comes from Andres Soto with Santander. Please go ahead.

Speaker #4: Good morning to all. Thank you for the presentation. My first question is regarding your local guidance, but specifically connecting this to Yapi.

[Analyst] (Santander): Good morning to all. Thank you for the presentation. My first question is regarding your loan growth guidance, but specifically connected this to Yape. Are you already including in this 8.5% something from Yape? How much we can expect Yape to contribute to lending of Credicorp in 2026? And if you can elaborate on the ramp up that you are seeing towards the multi-installment in the consumer loans and also the pilots that you are conducting in SMEs.

Andrés Soto: Good morning to all. Thank you for the presentation. My first question is regarding your loan growth guidance, but specifically connected this to Yape. Are you already including in this 8.5% something from Yape? How much we can expect Yape to contribute to lending of Credicorp in 2026? And if you can elaborate on the ramp up that you are seeing towards the multi-installment in the consumer loans and also the pilots that you are conducting in SMEs.

Speaker #4: Are you already including in this 8.5% something from JPA? How much can we expect JP to contribute to the lending of credit cards in 2026?

Speaker #4: And if you can elaborate on the ramp-up that you are seeing towards the multi in the consumer loans, and also the pilots that you are conducting in SMEs.

Speaker #4: Alejandro .

Gianfranco Ferrari: Alejandro?

Speaker #1: Yes , sure . The numbers do include let's remember that Yap is lending is in book . So so when I was talking about this double digit growth in VCP , I was including already the amount from from JP .

Alejandro Pérez-Reyes: Yes, sure. The numbers do include it. Let's remember that Yape lending is in BCP's book. So when I was talking about this double-digit growth in BCP, I was including already the amount from Yape. As for the growth, we are expecting the book to grow fast in the coming years. The number we're expecting... I mean, we're not giving guidance for the number of the specific book, but it should probably triple in the next couple of years. So that's the speed at which it's growing. Having said that, it's still a small portfolio for Credicorp's whole book, okay? So it is growing fast.

Speaker #1: As for the growth , we are expecting the the book to grow fast in the in the coming years . The number we're expecting , I we're not giving guidance for the number of of the specific book , but it should probably triple in the next couple of years .

Speaker #1: So, that's the speed, which is growing. Having said that, it's still a small portfolio for Credicorp as a whole, the whole book.

Speaker #1: Okay , so it is growing fast and it has a good margin . So probably a bigger margin than other other books . But it's still going to be a smaller proportion of the whole book of the of the group in the coming years

Alejandro Pérez-Reyes: and it has a good margin, so probably a bigger margin than other books, but it's still gonna be a smaller proportion of the whole book of the group in the coming years.

Speaker #4: And in terms of expenses , cost of income is always tricky because there are there are multiple variables involved , but what what are you looking to in terms of total expense growth in 2026 ?

[Analyst] (Santander): In terms of expenses, cost to income is always tricky because there are multiple variables involved. But what are you looking to in terms of total expense growth in 2026?

Andrés Soto: In terms of expenses, cost to income is always tricky because there are multiple variables involved. But what are you looking to in terms of total expense growth in 2026?

Speaker #1: You're talking about Credicorp, or.

Alejandro Pérez-Reyes: You're talking about Credicorp or-

Speaker #4: Credit card. Yes, yes. Expenses.

[Analyst] (Santander): Credicorp, as a whole. Yes, Alejandro. Yes.

Andrés Soto: Credicorp, as a whole. Yes, Alejandro. Yes.

Speaker #1: Okay . So we we we actually guide for cost to income as , as so and as I mentioned , we're expecting cost to income to reduce in the coming year .

Alejandro Pérez-Reyes: Okay, so we actually guide for cost to income. So, and as I mentioned, we're expecting cost to income to reduce in the coming year. If you look at the guidance we've just given, even the upper side of the guidance is below the result of this year. We're seeing a lot of acceleration on the income of some of these initiatives. So, on the expense side, we are gonna continue to invest in all of these, not only disruptive initiatives, but also on the ongoing business, and improving our capabilities to better serve the clients, you know? So, yeah.

Speaker #1: Well, if you look at the guidance we've just given, even the upper side of the guidance is below the result of this year.

Speaker #1: And we're seeing a lot of acceleration on on the income of some of these initiatives . So on the expense side , we are going to continue to invest in all of these not only disruptive initiatives , but also on the ongoing business and improving our capabilities to better serve the clients .

Speaker #1: So yeah , so

Speaker #4: Okay . And finally , on capital , when I look at VCP , at 14% equity tier one at 17% , how do you feel about those numbers considering the cycle , both in terms of improved asset quality but also faster growth ?

[Analyst] (Santander): Okay. And then finally, on capital, when I look at BCP at 14%, Core Equity Tier 1, Mibanco at 17%, how do you feel about those numbers, considering the cycle, both in terms of improved asset quality, but also faster loan growth? Where do you guys feel comfortable for what is coming ahead?

Andrés Soto: Okay. And then finally, on capital, when I look at BCP at 14%, Core Equity Tier 1, Mibanco at 17%, how do you feel about those numbers, considering the cycle, both in terms of improved asset quality, but also faster loan growth? Where do you guys feel comfortable for what is coming ahead?

Speaker #4: Where do you guys feel comfortable for what is coming ahead?

Speaker #1: Sure. The way in which we usually work is we have internal limits of 11% for VCP and 13.5% for Vivanco. And we—I'm sorry.

Alejandro Pérez-Reyes: Sure. The way in which we usually work is we have internal limits of 11% for BCP and 13.5 for Mibanco. And, we-

Gianfranco Ferrari: Fourteen.

Alejandro Pérez-Reyes: I'm sorry.

Speaker #4: 14.5 .

Gianfranco Ferrari: 14.5.

Speaker #1: Yeah, 14.5 for Vivanco. And what we do is, in March, we declare dividends and take the set one close to those levels.

Alejandro Pérez-Reyes: Yeah, 14.5 for Mibanco. And what we do is, in March, we declare dividends and take the said one close to those levels. So the number you're seeing right now is pretty high because we've been building capital throughout the year. We will reduce it toward those levels in March. It has to be approved by the board and by

Speaker #1: So, the number you're seeing right now is pretty high because we've been building capital throughout the year. We will reduce it towards those levels in March.

Speaker #1: It has to be approved by by by the board and by shareholders . The shareholders meeting . But that idea and so in that case we will go back to those levels .

Gianfranco Ferrari: Shareholders

Alejandro Pérez-Reyes: ... the shareholder meetings. But that's the idea, and so in that case, we will go back to those levels. We do see increasing loan growth, but it's already in our numbers, and there shouldn't be any problems with capital going forward.

Speaker #1: We do see increasing loan growth, but it's already in our numbers. And there shouldn't be any problems with capital going forward.

Speaker #4: Perfect . And just quickly so that money is going to go is going to the holding company . And from the holding company , the intention is to distribute to shareholders

[Analyst] (Santander): Perfect. And just so we hear, so that money is going to the holding company, and from the holding company-

Andrés Soto: Perfect. And just so we hear, so that money is going to the holding company, and from the holding company-

Alejandro Pérez-Reyes: Yes.

[Analyst] (Santander): The intention is to distribute to shareholders.

Andrés Soto: The intention is to distribute to shareholders.

Speaker #1: Exactly . So the way in which it works is the policies we basically send all excess capital to the holding company . Usually this happens in March and then in April , the credit or the holding company will propose a dividend .

Alejandro Pérez-Reyes: Exactly. So the way in which it works is the policy, we basically send all excess capital to the holding company. Usually, this happens in March, and then in April, Credicorp, the holding company will propose a dividend and then declare it an ordinary dividend. And what we're aiming for, as I mentioned in our calls, is an increasing ordinary dividend each year, and we're in line to being able to do that. And then, depending on how the year goes, we might give a second extraordinary dividend, but that is dependent on the conditions of the year.

Speaker #1: And then and then declare it an ordinary dividend . And what we're aiming for , as I mentioned in our call , is an an increasing ordinary dividend each year .

Speaker #1: And we're in line to , to to being able to do that . And then depending on how the year goes , we might give a second extraordinary dividend .

Speaker #1: But that is dependent on the conditions of the year.

Speaker #4: And obviously, this is subject to approval.

Gianfranco Ferrari: Obviously, it is subject to approval-

Speaker #1: Exactly .

Alejandro Pérez-Reyes: Exactly.

Speaker #4: Governance

Gianfranco Ferrari: Governance approval.

Speaker #1: Approval . Yeah

Speaker #4: Perfect. Thank you very much. And congratulations on the results.

[Analyst] (Santander): Perfect. Thank you very much, and congratulations on the results.

Andrés Soto: Perfect. Thank you very much, and congratulations on the results.

Speaker #1: Thank you

Alejandro Pérez-Reyes: Thank you.

Speaker #2: There are no further questions at this time. I will now turn the call back over to Gianfranco Casas, Ferrari Chief Executive Officer, for closing remarks.

Milagros Cigüeñas: It appears there are no further questions at this time. I will now turn the call back over to Gianfranco Ferrari, Chief Executive Officer, for closing remarks.

Speaker #4: As we look ahead to 2026, I'm very confident in our positioning. We're entering the year with a healthy pipeline across businesses, an improving trade environment, and a clear strategic focus.

Gianfranco Ferrari: As we look ahead to 2026, I'm very confident in our positioning. We're entering the year with a healthy pipeline across businesses, an improving trade environment, and a clear strategic focus. We expect loan growth of around 8.5%, supported by retail momentum at BCP and continued expansion at Mibanco, alongside stable and healthy margins, with NIM expected to remain in the mid- to high-6% range. Asset quality is improving, and we expect the cost of risk to remain within our target range, supporting risk-adjusted profitability. Our focus remain on three priorities: scale and monetize our digital ecosystem, expanding inclusion and accelerating new revenue streams. Leverage synergies across businesses through data, talent, and shared platforms to unlock growth and efficiency. Execute with discipline, applying clear profitability thresholds and long-term value creation across core and disruptive initiatives. These are not new themes.

Speaker #4: We expect loan growth of around 8.5%, supported by retail momentum at VCP, and continued expansion at Vivanco, alongside stable and healthy margins, with NIM expected to remain in the mid to high 6% range.

Speaker #4: Asset quality is improving and we expect the cost of risk to remain within our target range . Supporting risk adjusted profitability . Our focus remains on free priorities , scale and monetize our digital ecosystem .

Speaker #4: Expanding inclusion and accelerating new revenue streams. Leverage synergies across businesses through data, talent, and shared platforms to unlock growth and efficiency.

Speaker #4: Execute with discipline . Applying clear profitability thresholds and long term value creation across core and disruptive initiatives . These are not new themes , they reflect the strategy we've been executing on consistently , and they're paying off .

Gianfranco Ferrari: They reflect the strategy we've been executing on consistently, and they're paying off. We're seeing tangible results across our platforms, with fee income expected to grow at low double digits, continued progress in efficiency, and sustained investment in digital capabilities. Thank you for your trust in Credicorp. We look forward to speaking with you next quarter.

Speaker #4: We're seeing tangible results across our platforms, with fee income expected to grow at low double digits. Continued progress in efficiency and sustained investment in digital capabilities.

Speaker #4: Thank you for your trust in Credicorp. We look forward to speaking with you next quarter.

Milagros Cigüeñas: Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect.

Q4 2025 Credicorp Ltd Earnings Call

Request a DemoDemo

BAP

Credicorp

Earnings