¨ |
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
x |
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
¨ |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
¨ |
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE
ACT OF 1934
|
Title
of each class
|
Name
of each exchange on which registered
|
|
Common
Shares, par value $5.00 per share
|
New
York Stock Exchange
|
Common
Shares, par value $5.00 per share
|
94,382,317
|
·
|
Item
6(E) "Share Ownership"
|
2
|
||
CAUTIONARY
STATEMENT WITH RESPECT TO FORWARD-LOOKING
STATEMENTS
|
3
|
|
PART
I
|
||
ITEM
1.
|
IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|
4
|
ITEM
2.
|
OFFER
STATISTICS AND EXPECTED TIMETABLE
|
4
|
ITEM
3.
|
KEY
INFORMATION
|
4
|
ITEM
4.
|
INFORMATION
ON THE COMPANY
|
12
|
ITEM
4A.
|
UNRESOLVED
STAFF COMMENTS
|
91
|
ITEM
5.
|
OPERATING
AND FINANCIAL REVIEW AND PROSPECTS
|
91
|
ITEM
6.
|
DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES
|
119
|
ITEM
7.
|
MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|
125
|
ITEM
8.
|
FINANCIAL
INFORMATION
|
128
|
ITEM
9.
|
THE
OFFER AND LISTING
|
130
|
ITEM
10.
|
ADDITIONAL
INFORMATION
|
134
|
ITEM
11.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
136
|
ITEM
12.
|
DESCRIPTION
OF SECURITIES OTHER THAN EQUITY SECURITIES
|
144
|
ITEM
13.
|
DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES
|
144
|
ITEM
14.
|
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
|
144
|
ITEM
15.
|
CONTROLS
AND PROCEDURES
|
144
|
ITEM
16A.
|
AUDIT
COMMITTEE FINANCIAL EXPERT
|
147
|
ITEM
16B.
|
CODE
OF ETHICS
|
148
|
ITEM
16C.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
148
|
ITEM
16D.
|
EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
149
|
ITEM
16E.
|
PURCHASES
OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
|
149
|
ITEM
17.
|
FINANCIAL
STATEMENTS
|
150
|
FINANCIAL
STATEMENTS
|
150
|
|
ITEM
19.
|
EXHIBITS
|
151
|
· |
general
economic conditions, including in particular economic conditions
in
Peru;
|
· |
performance
of financial markets, including emerging
markets;
|
· |
the
frequency and severity of insured loss
events;
|
· |
interest
rate levels;
|
· |
currency
exchange rates, including the Nuevo Sol/U.S. Dollar exchange
rate;
|
· |
increasing
levels of competition in Peru and other emerging
markets;
|
· |
changes
in laws and regulations;
|
· |
changes
in the policies of central banks and/or foreign governments;
and
|
· |
general
competitive factors, in each case on a global, regional and/or national
basis.
|
ITEM
1.
|
IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND
ADVISERS
|
ITEM
2.
|
OFFER
STATISTICS AND EXPECTED
TIMETABLE
|
ITEM
3.
|
KEY
INFORMATION
|
(A)
|
Selected
Financial Data
|
Year
ended December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
(U.S.
Dollars in thousands, except percentages, ratios, and per common
share
data)
|
||||||||||||||||
INCOME
STATEMENT DATA:
|
||||||||||||||||
IFRS:
|
||||||||||||||||
Interest
income
|
US$
|
548,285
|
US$
|
542,842
|
US$
|
612,432
|
US$
|
782,002
|
US$
|
1,065,974
|
||||||
Interest
expense
|
(163,580
|
)
|
(160,298
|
)
|
(173,159
|
)
|
(283,478
|
)
|
(432,000
|
)
|
||||||
Net
interest income
|
384,705
|
382,544
|
439,273
|
498,524
|
633,974
|
|||||||||||
Provision
for loan losses (1)
|
(66,421
|
)
|
(16,131
|
)
|
6,356
|
4,243
|
(28,439
|
)
|
||||||||
Net
interest income after provision for loan losses
|
318,284
|
366,413
|
445,629
|
502,767
|
605,535
|
|||||||||||
Fees
and commissions from banking services
|
189,472
|
201,474
|
206,163
|
243,778
|
324,761
|
|||||||||||
Net
gains (losses) from sales of securities
|
3,235
|
10,135
|
8,965
|
27,281
|
41,359
|
|||||||||||
Net
gains on foreign exchange transactions
|
23,681
|
24,165
|
29,286
|
41,638
|
61,778
|
|||||||||||
Net
premiums earned
|
125,115
|
192,672
|
218,955
|
251,261
|
297,272
|
|||||||||||
Other
income
|
23,227
|
8,105
|
21,571
|
26,197
|
90,022
|
|||||||||||
Claims
on insurance activities
|
(99,774
|
)
|
(154,325
|
)
|
(175,500
|
)
|
(186,522
|
)
|
(238,600
|
)
|
||||||
Operating
expenses
|
(430,373
|
)
|
(459,928
|
)
|
(477,073
|
)
|
(585,058
|
)
|
(742,072
|
)
|
||||||
Merger
costs
|
(18,587
|
)
|
(3,742
|
)
|
0
|
(5,706
|
)
|
0
|
||||||||
Income
before translation result and income tax
|
134,280
|
184,969
|
277,996
|
315,636
|
440,055
|
|||||||||||
Translation
result
|
(3,675
|
)
|
2,040
|
(9,597
|
)
|
15,216
|
34,627
|
|||||||||
Income
tax
|
(39,695
|
)
|
(45,497
|
)
|
(73,546
|
)
|
(83,587
|
)
|
(102,287
|
)
|
||||||
Net
income
|
90,910
|
141,512
|
194,853
|
247,265
|
372,395
|
|||||||||||
Net
income attributable to Credicorp’s equity holders
|
80,607
|
130,747
|
181,885
|
230,013
|
350,735
|
|||||||||||
Minority
interests
|
10,303
|
10,765
|
12,968
|
17,252
|
21,660
|
|||||||||||
Net
income per Common Share attributable to Credicorp’s equity holders
(2)
|
1.01
|
1.64
|
2.28
|
2.88
|
4.40
|
|||||||||||
Cash
dividends declared per Common Share
|
0.40
|
0.80
|
1.10
|
1.30
|
1.50
|
|||||||||||
BALANCE
SHEET DATA:
|
||||||||||||||||
IFRS:
|
||||||||||||||||
Total
assets
|
8,321,783
|
9,087,560
|
11,036,075
|
12,881,529
|
17,705,898
|
|||||||||||
Total
loans (3)
|
4,481,496
|
4,559,018
|
4,972,975
|
5,877,361
|
8,183,845
|
|||||||||||
Reserves
for loan losses (1)
|
(326,677
|
)
|
(271,873
|
)
|
(218,636
|
)
|
(210,586
|
)
|
(229,700
|
)
|
||||||
Total
deposits
|
5,976,506
|
6,270,972
|
7,067,754
|
8,799,134
|
11,299,671
|
|||||||||||
Equity
attributable to Credicorp's equity holders
|
910,730
|
1,065,197
|
1,190,440
|
1,396,822
|
1,676,009
|
|||||||||||
Minority
interest
|
72,841
|
85,253
|
101,515
|
136,946
|
139,264
|
|||||||||||
Net
Equity
|
983,571
|
1,150,450
|
1,291,955
|
1,533,768
|
1,815,273
|
|||||||||||
SELECTED
RATIOS:
|
||||||||||||||||
IFRS:
|
||||||||||||||||
Net
interest margin (4)
|
5.15
|
%
|
4.85
|
%
|
4.90
|
%
|
4.64
|
%
|
4.50
|
%
|
||||||
Return
on average total assets (5)
|
0.95
|
1.50
|
1.81
|
1.92
|
2.29
|
|||||||||||
Return
on average equity attributable to Credicorp's equity holders
(6)
|
9.27
|
13.55
|
16.39
|
18.47
|
22.67
|
|||||||||||
Operating
expenses as a percentage of net interest and non-interest income
(7)
|
50.66
|
49.18
|
46.25
|
50.26
|
50.62
|
|||||||||||
Operating
expenses as a percentage of average assets
|
5.08
|
5.28
|
4.74
|
4.89
|
4.85
|
|||||||||||
Equity
attributable to Credicorp’s equity holders as a percentage of period end
total assets
|
10.94
|
11.72
|
10.79
|
10.84
|
9.47
|
|||||||||||
Regulatory
capital as a percentage of risk-weighted assets (8)
|
15.28
|
14.04
|
13.10
|
11.98
|
12.80
|
|||||||||||
Total
past due loan amounts as a percentage of total loans (9)
|
5.72
|
3.49
|
1.93
|
1.31
|
0.75
|
|||||||||||
Reserves
for loan losses as a percentage of total loans
|
7.29
|
5.96
|
3.97
|
3.24
|
2.58
|
|||||||||||
Reserves
for loan losses as a percentage of total loans and other contingent
credits (10)
|
5.38
|
4.99
|
3.19
|
2.59
|
2.17
|
|||||||||||
Reserves
for loan losses as a percentage of total past due loans
(11)
|
127.50
|
170.93
|
206.22
|
247.85
|
343.68
|
|||||||||||
Reserves
for loan losses as a percentage of substandard loans (12)
|
50.26
|
54.11
|
65.42
|
78.24
|
101.98
|
(1) |
Provision
for loan losses and reserve for loan losses include provisions
and
reserves with respect to total loans and contingent credits,
net of write
off recoveries.
|
(2) |
Credicorp
has 100 million authorized common shares (“Common Shares”). As of December
31, 2007, Credicorp had issued 94.4 million Common Shares, of which
14.6
million are held by ASHC. Per Common Share data presented considers
net
outstanding shares (Common Shares net of shares held by BCP, ASHC
and PPS)
of 79.7 million in 2002 to 2007. See Notes 18 and 27 to the Credicorp
Consolidated Financial Statements.
|
(3) |
Net
of unearned interest, but prior to reserve for loan losses. In
addition to
loans outstanding, Credicorp had contingent loans of US$782.9 million,
US$889.1 million, US$1,220.9 million, US$1,455.4 million and US$1,564.5
million, as of December 31, 2003, 2004, 2005, 2006 and 2007, respectively.
See Note 21 to the Credicorp Consolidated Financial
Statements.
|
(4) |
Net
interest income as a percentage of average interest-earning assets,
computed as the average of period-beginning and period-ending balances
on
a monthly basis.
|
(5) |
Net
income as a percentage of average total assets, computed as the
average of
period-beginning and period-ending
balances.
|
(6) |
Net
income as a percentage of average equity attributable to Credicorp´s
equity holders, computed as the average of period-beginning and
period-ending balances. Calculated on a monthly
basis.
|
(7) |
Sum
of the salaries and employee’s benefits, administrative expenses,
depreciation and amortization, as a percentage of the sum of net
interest
income and non-interest income, less net gains from sales of securities
and other income.
|
(8) |
Regulatory
capital calculated in accordance with guidelines by the Basel Committee
on
Banking Regulations and Supervisory Practices of International
Settlements
(the “BIS I Accord”) as adopted by the SBS. See “Item 5. Operating and
Financial Review and Prospects—(B) Liquidity and Capital
Resources—Regulatory Capital and Capital Adequacy
Ratios.”
|
(9) |
BCP
considers loans past due after 90 days, for installment loans,
which
include mortgage loans but exclude consumer loans. ASHC considers
past due
all overdue loans except for consumer loans, which are considered
past due
when the scheduled principal and/or interest payments are overdue
for more
than 90 days. For IFRS 7 disclosure requirements on past due loans,
see
Note 31.1 to the Credicorp Consolidated Financial Statements. See
“Item 4.
Information on the Company—(B) Business Overview—(12) Selected Statistical
Information—(iii) Loan Portfolio—Classification of the Loan Portfolio
Based on the Borrower’s Payment
Performance.”
|
(10) |
Other
contingent credits primarily consist of guarantees, stand-by letters
and
letters of credit. See Note 21 to the Credicorp Consolidated Financial
Statements.
|
(11) |
Reserves
for loan and contingent credit losses, as a percentage of all past
due
loans, with no reduction for collateral securing such loans. Reserves
for
loan and contingent credit losses includes reserves with respect
to total
loans and other credits.
|
(12) |
Reserves
for loan and contingent credit losses as a percentage of loans
classified
in categories C, D or E. See “Item 4. Information on the Company—(B)
Business Overview—(12) Selected Statistical Information—(iii) Loan
Portfolio—Classification of Loan
Portfolio.”
|
Year
ended December 31,
|
High(1)
|
Low(1)
|
Average(2)
|
Period-end(3)
|
|||||||||
(Nominal
Nuevos Soles per U.S. Dollar)
|
|||||||||||||
2003
|
3.496
|
3.463
|
3.477
|
3.464
|
|||||||||
2004
|
3.500
|
3.283
|
3.410
|
3.283
|
|||||||||
2005
|
3.440
|
3.249
|
3.295
|
3.420
|
|||||||||
2006
|
3.455
|
3.195
|
3.274
|
3.195
|
|||||||||
2007
|
3.197
|
2.998
|
3.125
|
2.998
|
(1) |
Highest
and lowest of the 12 month-end exchange rates for each year based
on the
offered rate.
|
(2) |
Average
of month-end exchange rates based on the offered
rate.
|
(3) |
End-of-period
exchange rates based on the offered
rate.
|
High(1)
|
Low(1)
|
||||||
(Nominal Nuevos Soles per U.S. Dollar)
|
|||||||
2007
|
|||||||
December
|
2.998
|
2.969
|
|||||
2008
|
|||||||
January
|
2.978
|
2.913
|
|||||
February
|
2.940
|
2.889
|
|||||
March
|
2.884
|
2.746
|
|||||
April
|
2.861
|
2.694
|
|||||
May
|
2.868
|
2.755
|
|||||
June
(through June 26)
|
2.963
|
2.788
|
(B)
|
Capitalization
and Indebtedness
|
(C)
|
Reasons
for the Offer and Use of
Proceeds
|
(D)
|
Risk
Factors
|
ITEM
4.
|
INFORMATION
ON THE COMPANY
|
(A)
|
History
and Development of the
Company
|
As of and for the Year ended December 31, 2007
|
||||||||||
Total
Revenues
|
Operating
Income
|
Total
Assets
|
||||||||
(U.S. Dollars in millions)
|
||||||||||
Commercial
Banking
|
US$
|
1,402
|
US$
|
614
|
US$
|
16,245
|
||||
Insurance
|
377
|
110
|
1,138
|
|||||||
Pension
Fund Administration
|
55
|
(1
|
)
|
244
|
||||||
Investment
Banking and others
|
47
|
(30
|
)
|
79
|
||||||
Credicorp
|
US$
|
1,881
|
US$
|
693
|
US$
|
17,706
|
As of and for the Year ended December 31, 2007(2)
|
|||||||||||||
Total
Assets
|
Total
Revenue
|
Net Income
(Loss)
|
Net
Equity
|
||||||||||
Banco
de Crédito del Perú
|
82.9
|
%
|
69.8
|
%
|
103.0
|
%
|
65.4
|
%
|
|||||
Atlantic
Security Holding Corporation
|
8.5
|
%
|
5.5
|
%
|
6.1
|
%
|
9.0
|
%
|
|||||
El
Pacífico-Peruano Suiza Compañía de Seguros y Reaseguros
|
6.3
|
%
|
21.2
|
%
|
1.2
|
%
|
11.1
|
%
|
|||||
Grupo
Crédito (1)
|
2.1
|
%
|
3.3
|
%
|
2.9
|
%
|
15.7
|
%
|
|||||
Others
(3)
|
0.2
|
%
|
0.2
|
%
|
-13.2
|
%
|
-1.2
|
%
|
(1)
|
Includes
Prima AFP and others.
|
(2) |
Percentages
determined based on the Credicorp Consolidated Financial
Statements.
|
(3) |
Includes
Credicorp Ltd., CCR Inc., Credicorp Securities Inc. and
others.
|
As of and for the Year ended December 31, 2007(2)
|
|||||||||||||
Total
Assets
|
Total
Revenue
|
Net Income
(Loss)
|
Net
Equity
|
||||||||||
Banco
de Crédito del Perú
|
91.6
|
%
|
89.0
|
%
|
85.4
|
%
|
84.1
|
%
|
|||||
Banco
de Crédito de Bolivia
|
5.4
|
%
|
6.0
|
%
|
8.2
|
%
|
7.5
|
%
|
|||||
Crédito
Leasing S.A.
|
2.1
|
%
|
1.9
|
%
|
-0.3
|
%
|
1.3
|
%
|
|||||
Financiera
de Crédito Solucion
|
0.3
|
%
|
0.2
|
%
|
-0.1
|
%
|
0.4
|
%
|
|||||
Credifondo
S.A.
|
0.2
|
%
|
1.7
|
%
|
2.8
|
%
|
1.8
|
%
|
|||||
Credibolsa
Sociedad Agente de Bolsa S.A.
|
0.2
|
%
|
0.9
|
%
|
2.9
|
%
|
1.9
|
%
|
|||||
Others(3)
|
0.2
|
%
|
0.3
|
%
|
1.1
|
%
|
3.0
|
%
|
(1)
|
Credicorp
holds an additional 4.08% stake.
|
(2) |
Percentages
determined based on BCP’s consolidated financial statements as of and for
the year ended December 31, 2007.
|
(3) |
Includes
Creditítulos S.A., Inmobiliaria BCP and
others.
|
(B)
|
Business
Overview
|
2005
|
2006
|
2007
|
Variation 2007/2006
|
||||||||||
(U.S.
Dollars in millions, except percentages)
|
|||||||||||||
BCP(1)
|
176.5
|
238.9
|
322.5
|
35
|
%
|
||||||||
ASCH
|
13.5
|
15.4
|
20.5
|
31
|
%
|
||||||||
PPS
|
5.6
|
14.5
|
9.4
|
-35
|
%
|
||||||||
Grupo
Crédito(2)
|
-13.7
|
-38.8
|
-1.7
|
96
|
%
|
||||||||
Total
|
181.9
|
230.0
|
350.7
|
52
|
%
|
(1)
|
Includes
Banco de Crédito de Bolivia, which contributed US$27.0 million in 2007,
US$14.1 million in 2006, and US$10.2 million in
2005.
|
(2)
|
Includes
Prima AFP (which recorded a net income of US$3.0 million in 2007,
losses
of US$20.7 million in 2006 and net income of US$7.6 million in 2005),
Credicorp Securities, Credicorp Ltd. holding company (which mainly
includes expenses and the tax withheld in connection with the estimation
of the dividends to be distributed to Credicorp by its Peruvian
subsidiaries (BCP and PPS)) and
others.
|
(i)
|
growing
our main business, BCP, through expansion of Retail Banking and
transactional business;
|
(ii)
|
restructuring
our insurance business by expanding our share in the personal insurance
branch, to stabilize risks and revenues;
|
(iii) |
positioning
Prima AFP pension fund management business; and,
|
(iv) |
improving
our asset management business throughout Credicorp’s companies.
|
(i)
|
growing
all products offered to the retail market;
|
(ii)
|
investing
in the increase of our bank penetration, and expanding the network
of our
branches, ATMs and Agentes BCP, thus providing innovative channels,
coupled with specifically tailored products;
|
(iii)
|
growing
revenues from transactional services; and
|
(iv)
|
investing
in streamlining products and processes, expanding our information
processing capacities, and building more secure support systems.
|
· |
controlling
costs and increasing returns by business unit;
|
· |
focusing
on Credicorp’s strategy products characterized by the best margins, most
predictable risks and stable revenues in the retail market, coupled
with
the design of new products that match the possibilities and needs
of our
present and potential clients;
|
· |
striving
for differentiation through excellence in service, and
|
· |
searching
for knowledge (through our partner, AIG), distribution (with BCP)
and
investment and information management (with Credicorp group – Asset
Management) synergies.
|
(i) |
improving
its fee structure;
|
(ii) |
yielding
the highest profits from fund management;
|
(iii) |
increasing
the volume of funds under management; and
|
(iv) |
searching
for synergies with other Credicorp companies.
|
·
|
Portfolio
Management: Credicorp seeks to consolidate the good performance of
its
portfolios and funds through strict risk control and an appropriate
level
of diversification. To achieve this, it focuses on improving three
key
aspects: investment policies, investment processes and management
metrics.
|
·
|
Financial
Management: Credicorp focuses on providing quality financial advisory
services, building customer loyalty, and encouraging customers to
invest
in a diverse combination of securities according to their risk profile.
Credicorp’s objective is to improve the standards of the advisory services
that the commercial bank offers and to distinguish between the levels
of
advisory services provided to different
sectors.
|
·
|
Brokerage:
Credicorp attempts to provide a timely and high quality service,
offering
competitive execution costs, channeling a greater proportion of the
assets
traded by the group’s companies to profitable investments and identifying
opportunities for joint action (resulting in better prices), in addition
to improving controls aimed at avoiding possible conflicts of interest.
|
·
|
Risk
Analysis: Credicorp seeks to identify, quantify, regulate and, ultimately,
minimize the risks associated with operations, credit, market, liquidity,
legal contingencies, conflict of interests and other risks. Another
objective of risk analysis is setting corporate investment limits,
creating a portfolio investments risk manual, and ensuring strict
compliance with risk control rules.
|
Before
|
After
|
|||||
Sales
(US$MM)
|
Group
|
Sales
(US$MM)
|
Group
|
|||
Up
to 0.3
|
Micro-business
|
Up
to 0.3
|
Micro-business
|
|||
From
0.3 to 1
|
Small
Business
|
From
0.3 to 1.5
|
Small
Business
|
|||
From
1 to 15
|
Middle
market
|
From
1.5 to 30
|
Middle
market
|
|||
Higher
than 15
|
Corporate
|
Higher
than 30
|
Corporate
|
•
|
Banco
de Crédito de Bolivia is BCP’s commercial bank in Bolivia. BCP owns 96% of
BCB and Credicorp holds the remaining interest. BCB initiated operations
under the BCP umbrella in February 1994. In July 1998, BCB absorbed
Banco
de la Paz’s operations for US$140 million, making BCB the fourth
largest bank in Bolivia. In May 1999, BCB acquired the portfolio
of Banco
Boliviano Americano for US$116 million and became Bolivia’s second
largest bank. Currently, BCB is the fourth largest bank in Bolivia
in
terms of market share and has a network of 61 offices located throughout
Bolivia. BCB owns one of Bolivia’s largest brokerage houses, Credibolsa
S.A. Agente de Bolsa. BCP targets middle- and small-sized clients
and
offers a broad range of corporate, personal banking and leasing products.
BCB’s results are consolidated in BCP’s financial
statements.
|
•
|
Credibolsa
Sociedad Agente de Bolsa (“Credibolsa”) was established in June 1991 and
is fully owned by BCP. It is engaged in portfolio advisory and brokerage
activities in the Lima Stock Exchange. Credibolsa is 100% owned by
BCP.
|
•
|
Credileasing
offers a large variety of financial leasing products. Credileasing
was
established in July 1996 and is 100% owned by
BCP
|
•
|
Credifondo
Sociedad Administradora de Fondos Mutuos (“Credifondo”) is a mutual fund
management company, established in 1994. Credifondo is 100% owned
by
BCP.
|
•
|
Creditítulos
(“Creditítulos”) was established in 1997 and is 100% owned by BCP. The
company serves as an asset securitization entity.
|
•
|
Inmobiliaria
BCP is the real estate subsidiary of BCP. This subsidiary was created
to
manage and promote the sale of real estate that had been foreclosed
or
received in payment by BCP. Inmobiliaria BCP is 100% owned by
BCP.
|
·
|
Corporate
Banking, which provides loans and other credit services to companies
with
annual revenues in excess of
US$30 million;
|
·
|
Middle
Market Banking, which serves mid-sized companies;
|
·
|
International
Trade Finance, which manages BCP’s relationship with financial
institutions abroad;
|
·
|
Corporate
Finance, which provides underwriting and financial advisory services
to
corporate and middle market clients;
|
·
|
Business
Finance, which finances business projects and manages the financial
leasing product;
|
·
|
Institutional
Banking, which focuses principally on serving non-profit organizations,
state-owned companies and other major institutions; and
|
·
|
Business
Services, which develops transactional
services.
|
•
|
Revolving
credit lines to finance inventories and sales, as well as stand-by
letters
of credit and international trade
financing;
|
•
|
Financing
for short-term requirements such as current account credits and temporary
account advances (overdrafts); and
|
•
|
Financing
for medium and long-term requirements using intermediation resources
(term
deposits) and various types of financial leasing
financing.
|
In
US$thousands
|
Risk without collateral or with
only personal collateral or
guarantee
|
Risk with preferred guarantees
(1)
|
Years
|
|||||||
Board of
Directors
|
No credit limit
|
No credit limit
|
No credit limit
|
|||||||
Executive
Committee
|
US$
|
60,000
|
US$
|
60,000
|
15
|
|||||
General
Manager
|
US$
|
15,000
|
US$
|
30,000
|
15
|
|||||
Credit
Group Manager
|
US$
|
7,500
|
US$
|
15,000
|
15
|
|||||
Credit
Risk Manager
|
US$
|
4,000
|
US$
|
8,000
|
10
|
|||||
Credit
Risk Chiefs
|
US$
|
1,000
|
US$
|
3,000
|
10
|
(1) |
Preferred
guarantees include deposits in cash, stand-by letters, securities
and
other liquid assets with market price, mortagages, non-real estate
property guarantees and assets generated by leasing
operations.
|
(i)
|
Banking
|
Major
Peruvian Banks as of December 31, 2007
|
Assets
|
Deposits
|
Loans
|
|||||||
BCP
|
38.4
|
%
|
36.2
|
%
|
32.6
|
%
|
||||
Banco
Continental
|
22.8
|
%
|
24.2
|
%
|
26.3
|
%
|
||||
Scotiabank
Perú
|
16.2
|
%
|
17.2
|
%
|
15.3
|
%
|
||||
Interbank
|
9.3
|
%
|
10.2
|
%
|
9.7
|
%
|
||||
Citibank
|
2.7
|
%
|
2.1
|
%
|
3.1
|
%
|
(ii)
|
Capital
Markets
|
(iii)
|
Other
Financial Institutions
|
(iv)
|
Insurance
|
(i)
|
Peruvian
Government
|
(ii)
|
Peruvian
Economy
|
(i)
|
General
|
(ii)
|
Central
Bank
|
(iii)
|
SBS
|
(iv)
|
Financial
System Institutions
|
(i)
|
Credicorp
|
(ii)
|
BCP
|
(iii)
|
ASHC
|
(iv)
|
BCB
|
(v)
|
PPS
|
(i)
|
Average
Balance Sheets and Income from Interest-Earning
Assets
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||||||||
2005
|
2006
|
2007
|
|||||||||||||||||||||||||||||||||||
ASSETS:
|
Average
Balance
|
|
Interest
Earned
|
Real
Avg.
Rate
|
Nominal
Avg.
Rate
|
Average
Balance
|
Interest
Earned
|
Real
Avg.
Rate
|
Nominal
Avg.
Rate
|
Average
Balance
|
Interest
Earned
|
Real
Avg.
Rate
|
Nominal
Avg.
Rate
|
||||||||||||||||||||||||
(U.S.
Dollars in thousands, except percentages)
|
|||||||||||||||||||||||||||||||||||||
Interest-earning
assets:
|
|||||||||||||||||||||||||||||||||||||
Deposits
in Central Bank
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
US$
|
5,361
|
US$
|
50
|
-0.55
|
%
|
0.93
|
%
|
US$
|
13,346
|
US$
|
157
|
0.16
|
%
|
1.18
|
%
|
US$
|
16,559
|
US$
|
339
|
1.00
|
%
|
2.05
|
%
|
|||||||||||||
Foreign
Currency
|
1,118,471
|
24,004
|
2.15
|
2.15
|
1,763,854
|
56,813
|
3.22
|
3.22
|
1,422,395
|
46,582
|
3.27
|
3.27
|
|||||||||||||||||||||||||
Total
|
1,123,832
|
24,054
|
2.13
|
2.14
|
1,777,200
|
56,970
|
3.20
|
3.21
|
1,438,954
|
46,921
|
3.25
|
3.26
|
|||||||||||||||||||||||||
Deposits
in other banks
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
31,926
|
1,073
|
1.84
|
3.36
|
43,684
|
1,762
|
2.99
|
4.03
|
30,337
|
1,224
|
2.99
|
4.04
|
|||||||||||||||||||||||||
Foreign
Currency
|
443,948
|
12,000
|
2.70
|
2.70
|
711,694
|
35,154
|
4.94
|
4.94
|
1,002,633
|
57,672
|
5.75
|
5.75
|
|||||||||||||||||||||||||
Total
|
475,874
|
13,073
|
2.65
|
2.75
|
755,378
|
36,916
|
4.83
|
4.89
|
1,032,970
|
58,896
|
5.67
|
5.70
|
|||||||||||||||||||||||||
Investment
securities
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
1,221,669
|
51,222
|
2.66
|
4.19
|
985,054
|
51,545
|
4.18
|
5.23
|
2,110,943
|
140,094
|
5.57
|
6.64
|
|||||||||||||||||||||||||
Foreign
Currency
|
1,290,919
|
73,138
|
5.67
|
5.67
|
1,589,978
|
89,760
|
5.65
|
5.65
|
2,131,911
|
109,508
|
5.14
|
5.14
|
|||||||||||||||||||||||||
Total
|
2,512,588
|
124,360
|
4.21
|
4.95
|
2,575,032
|
141,305
|
5.08
|
5.49
|
4,242,854
|
249,602
|
5.35
|
5.88
|
|||||||||||||||||||||||||
Total
loans (1)
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
831,393
|
132,692
|
14.26
|
15.96
|
1,307,784
|
178,469
|
12.51
|
13.65
|
1,942,261
|
262,402
|
12.37
|
13.51
|
|||||||||||||||||||||||||
Foreign
Currency
|
3,888,576
|
314,700
|
8.09
|
8.09
|
4,104,477
|
359,202
|
8.75
|
8.75
|
5,101,392
|
439,070
|
8.61
|
8.61
|
|||||||||||||||||||||||||
Total
|
4,719,969
|
447,392
|
9.18
|
9.48
|
5,412,261
|
537,671
|
9.66
|
9.93
|
7,043,653
|
701,472
|
9.65
|
9.96
|
|||||||||||||||||||||||||
Total
dividend-earning assets
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
65,234
|
2,252
|
1.93
|
3.45
|
119,106
|
6,171
|
4.13
|
5.18
|
215,100
|
6,004
|
1.76
|
2.79
|
|||||||||||||||||||||||||
Foreign
Currency
|
65,511
|
1,301
|
1.99
|
1.99
|
109,129
|
2,970
|
2.72
|
2.72
|
118,334
|
3,079
|
2.60
|
2.60
|
|||||||||||||||||||||||||
Total
|
130,745
|
3,553
|
1.96
|
2.72
|
228,235
|
9,141
|
3.46
|
4.01
|
333,434
|
9,083
|
2.06
|
2.72
|
|||||||||||||||||||||||||
Total
interest-earning assets
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
2,155,583
|
187,289
|
7.09
|
8.69
|
2,468,974
|
238,104
|
8.55
|
9.64
|
4,315,200
|
410,063
|
8.41
|
9.50
|
|||||||||||||||||||||||||
Foreign
Currency
|
6,807,425
|
425,143
|
6.25
|
6.25
|
8,279,132
|
543,899
|
6.57
|
6.57
|
9,776,665
|
655,911
|
6.71
|
6.71
|
|||||||||||||||||||||||||
Total
|
8,963,008
|
612,432
|
6.45
|
6.83
|
10,748,106
|
782,003
|
7.02
|
7.28
|
14,091,865
|
1,065,974
|
7.23
|
7.56
|
|||||||||||||||||||||||||
Noninterest-earning
assets:
|
|||||||||||||||||||||||||||||||||||||
Cash
and due from banks
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
135,168
|
168,332
|
250,118
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
179,250
|
200,523
|
255,715
|
||||||||||||||||||||||||||||||||||
Total
|
314,418
|
368,855
|
505,833
|
||||||||||||||||||||||||||||||||||
Reserves
for loan losses
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
(33,020
|
)
|
(33,859
|
)
|
(37,601
|
)
|
|||||||||||||||||||||||||||||||
Foreign
Currency
|
(191,132
|
)
|
(167,337
|
)
|
(154,917
|
)
|
|||||||||||||||||||||||||||||||
Total
|
(224,152
|
)
|
(201,196
|
)
|
(192,518
|
)
|
|||||||||||||||||||||||||||||||
Premises
and equipment
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
177,012
|
165,610
|
182,308
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
66,559
|
79,281
|
73,948
|
||||||||||||||||||||||||||||||||||
Total
|
243,571
|
244,891
|
256,256
|
||||||||||||||||||||||||||||||||||
Other
non-interest-earning assets
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
141,397
|
84,716
|
334,653
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
320,424
|
412,659
|
561,477
|
||||||||||||||||||||||||||||||||||
Total
|
461,821
|
497,375
|
896,130
|
||||||||||||||||||||||||||||||||||
Total
non-interest-earning assets
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
420,557
|
384,799
|
729,478
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
375,101
|
525,126
|
736,223
|
||||||||||||||||||||||||||||||||||
Total
|
795,658
|
909,925
|
1,465,701
|
||||||||||||||||||||||||||||||||||
Total
average assets
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
2,576,140
|
187,289
|
5.70
|
7.27
|
2,853,773
|
238,104
|
7.26
|
8.34
|
5,044,678
|
410,063
|
7.05
|
8.13
|
|||||||||||||||||||||||||
Foreign
Currency
|
7,182,526
|
425,143
|
5.92
|
5.92
|
8,804,258
|
543,899
|
6.18
|
6.18
|
10,512,888
|
655,911
|
6.24
|
6.24
|
|||||||||||||||||||||||||
Total
|
9,758,666
|
612,432
|
5.86
|
6.28
|
11,658,031
|
782,003
|
6.44
|
6.71
|
15,557,566
|
1,065,974
|
6.50
|
6.85
|
(1)
|
Figures
for total loans include past due loans, but do not include accrued
but
unpaid interest on such past due loans in the year in which such
loans
became past due. Accrued interest is included.
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||||||||
2005
|
2006
|
2007
|
|||||||||||||||||||||||||||||||||||
LIABILITIES
|
Average
Balance
|
Interest
Paid
|
Real
Avg.
Rate
|
Nominal
Avg.
Rate
|
Average
Balance
|
Interest
Paid
|
Real
Avg.
Rate
|
Nominal
Avg. Rate
|
Average
Balance
|
Interest
Paid
|
Real
Avg.
Rate
|
Nominal
Avg.
Rate
|
|||||||||||||||||||||||||
(U.S.
Dollars in thousands, except percentages)
|
|||||||||||||||||||||||||||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||||||||||||||||||||
Demand
deposits
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles(1)
|
US$
|
641,920
|
US$
|
6,056
|
-0.54
|
%
|
0.94
|
%
|
US$
|
776,964
|
US$
|
8,631
|
0.10
|
%
|
1.11
|
%
|
US$
|
1,120,416
|
US$
|
12,761
|
0.10
|
%
|
1.14
|
%
|
|||||||||||||
Foreign
Currency(1)
|
926,710
|
10,861
|
1.17
|
1.17
|
1,512,284
|
16,150
|
1.07
|
1.07
|
2,206,983
|
12,362
|
0.56
|
0.56
|
|||||||||||||||||||||||||
Total
|
1,568,630
|
16,917
|
0.47
|
1.08
|
2,289,248
|
24,781
|
0.74
|
1.08
|
3,327,399
|
25,123
|
0.40
|
0.76
|
|||||||||||||||||||||||||
Savings
deposits
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles(1)
|
452,826
|
3,495
|
-0.71
|
0.77
|
518,859
|
4,917
|
-0.06
|
0.95
|
711,641
|
8,550
|
0.16
|
1.20
|
|||||||||||||||||||||||||
Foreign
Currency(1)
|
1,118,117
|
5,739
|
0.51
|
0.51
|
1,238,890
|
7,919
|
0.64
|
0.64
|
1,396,318
|
11,319
|
0.81
|
0.81
|
|||||||||||||||||||||||||
Total
|
1,570,943
|
9,234
|
0.16
|
0.59
|
1,757,749
|
12,836
|
0.43
|
0.73
|
2,107,959
|
19,869
|
0.59
|
0.94
|
|||||||||||||||||||||||||
Time
deposits
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles(1)
|
562,148
|
24,300
|
2.79
|
4.32
|
709,208
|
36,221
|
4.05
|
5.11
|
1,440,081
|
82,746
|
4.66
|
5.75
|
|||||||||||||||||||||||||
Foreign
Currency(1)
|
2,944,558
|
76,954
|
2.61
|
2.61
|
3,068,947
|
124,344
|
4.05
|
4.05
|
3,613,304
|
180,741
|
5.00
|
5.00
|
|||||||||||||||||||||||||
Total
|
3,506,706
|
101,254
|
2.64
|
2.89
|
3,778,155
|
160,565
|
4.05
|
4.25
|
5,053,385
|
263,487
|
4.90
|
5.21
|
|||||||||||||||||||||||||
Due
to banks and correspondents
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
159,892
|
3,162
|
0.48
|
1.98
|
249,212
|
14,870
|
4.91
|
5.97
|
153,258
|
8,719
|
4.60
|
5.69
|
|||||||||||||||||||||||||
Foreign
Currency
|
448,419
|
18,260
|
4.07
|
4.07
|
865,365
|
45,143
|
5.22
|
5.22
|
1,411,710
|
81,210
|
5.75
|
5.75
|
|||||||||||||||||||||||||
Total
|
608,311
|
21,422
|
3.13
|
3.52
|
1,114,577
|
60,013
|
5.15
|
5.38
|
1,564,968
|
89,929
|
5.64
|
5.75
|
|||||||||||||||||||||||||
Bonds
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
122,521
|
9,655
|
6.30
|
7.88
|
153,178
|
11,041
|
6.13
|
7.21
|
201,787
|
12,954
|
5.33
|
6.42
|
|||||||||||||||||||||||||
Foreign
Currency
|
295,821
|
14,677
|
4.96
|
4.96
|
292,984
|
14,242
|
4.86
|
4.86
|
341,643
|
20,638
|
6.04
|
6.04
|
|||||||||||||||||||||||||
Total
|
418,342
|
24,332
|
5.35
|
5.82
|
446,162
|
25,283
|
5.30
|
5.67
|
543,430
|
33,592
|
5.78
|
6.18
|
|||||||||||||||||||||||||
Total
interest-bearing liabilities
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
1,939,307
|
46,668
|
0.90
|
2.41
|
2,407,421
|
75,680
|
2.11
|
3.14
|
3,627,183
|
125,730
|
2.40
|
3.47
|
|||||||||||||||||||||||||
Foreign
Currency
|
5,733,625
|
126,491
|
2.21
|
2.21
|
6,978,470
|
207,798
|
2.98
|
2.98
|
8,969,958
|
306,270
|
3.41
|
3.41
|
|||||||||||||||||||||||||
Total
|
7,672,932
|
173,159
|
1.88
|
2.26
|
9,385,891
|
283,478
|
2.76
|
3.02
|
12,597,141
|
432,000
|
3.12
|
3.43
|
|||||||||||||||||||||||||
Non-interest-bearing
liabilities and net equity:
|
|||||||||||||||||||||||||||||||||||||
Other
liabilities
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
108,140
|
56,016
|
157,062
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
770,712
|
862,715
|
1,123,751
|
||||||||||||||||||||||||||||||||||
Total
|
878,852
|
918,731
|
1,280,813
|
||||||||||||||||||||||||||||||||||
Equity
attributable to Credicorp equity holders
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
—
|
—
|
-
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
1,133,773
|
1,247,195
|
1,547,283
|
||||||||||||||||||||||||||||||||||
Total
|
1,133,773
|
1,247,195
|
1,547,283
|
||||||||||||||||||||||||||||||||||
Minority
Interest
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
—
|
|
|||||||||||||||||||||||||||||||||||
Foreign
Currency
|
93,109
|
106,214
|
132,329
|
||||||||||||||||||||||||||||||||||
Total
|
93,109
|
106,214
|
132,329
|
||||||||||||||||||||||||||||||||||
Total
non-interest-bearing liabilities and equity
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
108,140
|
56,016
|
157,062
|
||||||||||||||||||||||||||||||||||
Foreign
Currency
|
1,977,594
|
2,216,124
|
2,803,363
|
||||||||||||||||||||||||||||||||||
Total
|
2,085,734
|
2,272,140
|
2,960,425
|
||||||||||||||||||||||||||||||||||
Total
average liabilities and equity
|
|||||||||||||||||||||||||||||||||||||
Nuevos
Soles
|
2,047,447
|
46,668
|
0.78
|
2.28
|
2,463,437
|
75,680
|
2.04
|
3.07
|
3,784,245
|
125,730
|
2.26
|
3.32
|
|||||||||||||||||||||||||
Foreign
Currency
|
7,711,219
|
126,491
|
1.64
|
1.64
|
9,194,594
|
207,798
|
2.20
|
2.26
|
11,773,321
|
306,270
|
2.60
|
2.60
|
|||||||||||||||||||||||||
Total
|
9,758,666
|
173,159
|
1.46
|
1.77
|
11,658,031
|
283,478
|
2.21
|
2.43
|
15,557,566
|
432,000
|
2.52
|
2.78
|
(1)
|
Includes
the amount paid to Central Bank for the deposit insurance
fund.
|
2006/2005
|
2007/2006
|
||||||||||||||||||
Increase/(Decrease) due to changes in:
|
Increase/(Decrease) due to changes in:
|
||||||||||||||||||
Volume
|
Rate
|
Net Change
|
Volume
|
Rate
|
Net Change
|
||||||||||||||
(U.S. Dollars in thousands)
|
|||||||||||||||||||
Interest Income:
|
|||||||||||||||||||
Interest-earning
deposits in Central Bank
|
|||||||||||||||||||
Nuevos
Soles
|
74
|
33
|
107
|
38
|
144
|
182
|
|||||||||||||
Foreign
Currency
|
13,851
|
18,958
|
32,809
|
(10,998
|
)
|
767
|
(10,231
|
)
|
|||||||||||
Total
|
13,925
|
18,991
|
32,916
|
(10,960
|
)
|
911
|
(10,049
|
)
|
|||||||||||
Deposits
in other banks
|
|||||||||||||||||||
Nuevos
Soles
|
395
|
294
|
689
|
(538
|
)
|
-
|
(538
|
)
|
|||||||||||
Foreign
Currency
|
7,237
|
15,917
|
23,154
|
14,371
|
8,147
|
22,518
|
|||||||||||||
Total
|
7,632
|
16,211
|
23,843
|
13,833
|
8,147
|
21,980
|
|||||||||||||
Investment
securities
|
|||||||||||||||||||
Nuevos
Soles
|
(9,921
|
)
|
10,244
|
323
|
58,914
|
29,635
|
88,549
|
||||||||||||
Foreign
Currency
|
16,943
|
(321
|
)
|
16,622
|
30,594
|
(10,846
|
)
|
19,748
|
|||||||||||
Total
|
7,022
|
9,923
|
16,945
|
89,508
|
18,789
|
108,297
|
|||||||||||||
Total
loans(1)
|
|||||||||||||||||||
Nuevos
Soles
|
76,033
|
(30,256
|
)
|
45,777
|
86,585
|
(2,652
|
)
|
83,933
|
|||||||||||
Foreign
Currency
|
17,473
|
27,029
|
44,502
|
87,245
|
(7,377
|
)
|
79,868
|
||||||||||||
Total
|
93,506
|
(3,227
|
)
|
90,279
|
173,830
|
(10,029
|
)
|
163,801
|
|||||||||||
Total
dividend-earning assets
|
|||||||||||||||||||
Nuevos
Soles
|
1,860
|
2,059
|
3,919
|
4,974
|
(5,141
|
)
|
(167
|
)
|
|||||||||||
Foreign
Currency
|
866
|
803
|
1,669
|
251
|
(142
|
)
|
109
|
||||||||||||
Total
|
2,726
|
2,862
|
5,588
|
5,225
|
(5,283
|
)
|
(58
|
)
|
|||||||||||
Total
interest-earning assets
|
|||||||||||||||||||
Nuevos
Soles
|
27,229
|
23,586
|
50,815
|
178,047
|
(6,088
|
)
|
171,959
|
||||||||||||
Foreign
Currency
|
91,912
|
26,844
|
118,756
|
98,381
|
13,631
|
112,012
|
|||||||||||||
Total
|
119,141
|
50,430
|
169,571
|
276,428
|
7,543
|
283,971
|
|||||||||||||
Interest
Expense:
|
|||||||||||||||||||
Demand
deposits
|
|||||||||||||||||||
Nuevos
Soles
|
1,274
|
1,301
|
2,575
|
3,815
|
315
|
4,130
|
|||||||||||||
Foreign
Currency
|
6,863
|
(1,574
|
)
|
5,289
|
7,419
|
(11,207
|
)
|
(3,788
|
)
|
||||||||||
Total
|
8,137
|
(273
|
)
|
7,864
|
11,234
|
(10,892
|
)
|
342
|
|||||||||||
Savings
deposits
|
|||||||||||||||||||
Nuevos
Soles
|
510
|
912
|
1,422
|
1,827
|
1,806
|
3,633
|
|||||||||||||
Foreign
Currency
|
620
|
1,560
|
2,180
|
1,006
|
2,394
|
3,400
|
|||||||||||||
Total
|
1,130
|
2,472
|
3,602
|
2,833
|
4,200
|
7,033
|
|||||||||||||
Time
deposits
|
|||||||||||||||||||
Nuevos
Soles
|
6,357
|
5,564
|
11,921
|
37,327
|
9,198
|
46,525
|
|||||||||||||
Foreign
Currency
|
3,251
|
44,139
|
47,390
|
22,056
|
34,341
|
56,397
|
|||||||||||||
Total
|
9,608
|
49,703
|
59,311
|
59,383
|
43,539
|
102,922
|
|||||||||||||
Due
to banks and correspondents and issued bonds
|
|||||||||||||||||||
Nuevos
Soles
|
1,766
|
9,942
|
11,708
|
(5,725
|
)
|
(426
|
)
|
(6,151
|
)
|
||||||||||
Foreign
Currency
|
16,978
|
9,905
|
26,883
|
28,501
|
7,566
|
36,067
|
|||||||||||||
Total
|
18,744
|
19,847
|
38,591
|
22,776
|
7,140
|
29,916
|
|||||||||||||
Bonds
|
|||||||||||||||||||
Nuevos
Soles
|
2,416
|
(1,030
|
)
|
1,386
|
3,504
|
(1,591
|
)
|
1,913
|
|||||||||||
Foreign
Currency
|
(141
|
)
|
(294
|
)
|
(435
|
)
|
2,365
|
4,031
|
6,396
|
||||||||||
Total
|
2,275
|
(1,324
|
)
|
951
|
5,869
|
2,440
|
8,309
|
||||||||||||
Total
interest-bearing liabilities
|
|||||||||||||||||||
Nuevos
Soles
|
11,265
|
17,747
|
29,012
|
38,345
|
11,705
|
50,050
|
|||||||||||||
Foreign
Currency
|
27,463
|
53,844
|
81,307
|
59,301
|
39,171
|
98,472
|
|||||||||||||
Total
|
38,728
|
71,591
|
110,319
|
97,646
|
50,876
|
148,522
|
(1)
|
Figures
for total loans include past due loans, but do not include accrued
but
unpaid interest on such past due loans in the year in which such
loans
became past due. Accrued interest is
included.
|
Year ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S. Dollars in thousands, except percentages)
|
||||||||||
Average
interest-earning assets
|
||||||||||
Nuevos
Soles
|
2,155,583
|
2,468,974
|
4,315,200
|
|||||||
Foreign
Currency
|
6,807,425
|
8,279,132
|
9,776,665
|
|||||||
Total
|
8,963,008
|
10,748,106
|
14,091,865
|
|||||||
Net
interest income
|
||||||||||
Nuevos
Soles
|
140,621
|
162,424
|
284,333
|
|||||||
Foreign
Currency
|
298,652
|
336,101
|
349,641
|
|||||||
Total
|
439,273
|
498,525
|
633,974
|
|||||||
Gross
yield (1)
|
||||||||||
Nuevos
Soles
|
8.69
|
%
|
9.64
|
%
|
9.50
|
%
|
||||
Foreign
Currency
|
6.25
|
%
|
6.57
|
%
|
6.71
|
%
|
||||
Weighted-average
rate
|
6.83
|
%
|
7.28
|
%
|
7.56
|
%
|
||||
Net
interest margin (2)
|
||||||||||
Nuevos
Soles
|
6.52
|
%
|
6.58
|
%
|
6.59
|
%
|
||||
Foreign
Currency
|
4.39
|
%
|
4.06
|
%
|
3.58
|
%
|
||||
Weighted-average
rate
|
4.90
|
%
|
4.64
|
%
|
4.50
|
%
|
||||
Yield
spread (3)
|
||||||||||
Nuevos
Soles
|
6.28
|
%
|
6.50
|
%
|
6.04
|
%
|
||||
Foreign
Currency
|
4.04
|
%
|
3.59
|
%
|
3.29
|
%
|
||||
Weighted-average
rate
|
4.58
|
%
|
4.26
|
%
|
4.14
|
%
|
(1) |
Gross
yield is interest income divided by average interest-earning
assets.
|
(2)
|
Net
interest margin represents net interest income divided by average
interest-earning assets.
|
(3)
|
Yield
spread, on a nominal basis, represents the difference between
gross yield
on average interest-earning assets and average cost of interest-bearing
liabilities.
|
Year ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S. Dollars in thousands)
|
||||||||||
Nuevo
Sol-denominated:
|
||||||||||
Peruvian
Central Bank
|
US$
|
—
|
US$
|
37,547
|
US$
|
—
|
||||
Commercial
banks
|
55,941
|
55,819
|
41,826
|
|||||||
Total
Nuevo Sol-denominated
|
US$
|
55,941
|
US$
|
93,366
|
US$
|
41,826
|
||||
Foreign
Currency-denominated:
|
||||||||||
Peruvian
Central Bank (U.S. Dollars)
|
US$
|
1,275,965
|
US$
|
1.105,921
|
US$
|
1,000,000
|
||||
U.S.
Dollars, other
|
632,698
|
739,028
|
1,360,649
|
|||||||
Other
|
8,076
|
55,506
|
50,472
|
|||||||
Total
Foreign Currency-denominated
|
US$
|
1,916,739
|
US$
|
1,900,455
|
US$
|
2,411,121
|
||||
Total
|
US$
|
1,972,680
|
US$
|
1,993,821
|
US$
|
2,452,947
|
(ii)
|
Investment
Portfolio
|
On December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S. Dollars in thousands)
|
||||||||||
Nuevo
Sol-denominated:
|
||||||||||
Peruvian
Government bonds
|
US$
|
129,137
|
US$
|
156,890
|
US$
|
274,391
|
||||
Equity
securities
|
144,919
|
148,333
|
227,751
|
|||||||
Bonds
|
91,065
|
74,010
|
110,916
|
|||||||
Peruvian
Central Bank certif. notes
|
835,287
|
1,277,613
|
2,407,005
|
|||||||
Other
investments
|
40,287
|
264,112
|
132,788
|
|||||||
Total
Nuevo Sol-denominated
|
US$
|
1,240,695
|
1,920,958
|
3,152,851
|
||||||
Foreign
Currency-denominated:
|
||||||||||
Equity
securities
|
US$
|
63,332
|
US$
|
102,543
|
US$
|
118,313
|
||||
Bonds
|
891,666
|
1,114,211
|
1,198,073
|
|||||||
Investment
in Peruvian debt
|
185,138
|
268,235
|
362,603
|
|||||||
Peruvian
Central Bank certif. notes
|
310,528
|
—
|
—
|
|||||||
Other
investment
|
163,894
|
61,634
|
406,262
|
|||||||
Total
Foreign Currency-denominated
|
US$
|
1,614,558
|
US$
|
1,546,623
|
US$
|
2,085,251
|
||||
Total
securities holdings
|
US$
|
2,855,253
|
US$
|
3,467,581
|
US$
|
5,238,102
|
Within
1 year
|
After 1 year
but within
3years
|
Maturing
After 3
years but
within 5
years
|
Maturing
After 5
years but
within
10 years
|
After 10
Years
|
Total
|
||||||||||||||
(U.S. Dollars in thousands, except percentages)
|
|||||||||||||||||||
Nuevo
Sol-denominated:
|
|||||||||||||||||||
Peruvian
government bonds
|
US$
|
104,856
|
US$
|
38,228
|
US$
|
—
|
US$
|
38,211
|
US$
|
93,096
|
US$
|
274,391
|
|||||||
Equity
securities (1)
|
227,751
|
—
|
—
|
—
|
—
|
227,751
|
|||||||||||||
Bonds
and debentures
|
20,097
|
21,045
|
2,891
|
12,124
|
54,759
|
110,916
|
|||||||||||||
Peruvian
Central Bank certif. notes
|
1,971,161
|
435,844
|
—
|
—
|
—
|
2,407,005
|
|||||||||||||
Other
investments
|
96,048
|
12,074
|
2,290
|
15,354
|
7,022
|
132,788
|
|||||||||||||
Total
Nuevo Sol-denominated
|
US$
|
2,419,913
|
US$
|
507,191
|
US$
|
5,181
|
US$
|
65,689
|
US$
|
154,877
|
US$
|
3,152,851
|
|||||||
Foreign
Currency-denominated:
|
|||||||||||||||||||
Peruvian
Government Bonds
|
73,004
|
1,363
|
26,981
|
92,648
|
168,607
|
362,603
|
|||||||||||||
Equity
securities (1)
|
118,313
|
—
|
—
|
—
|
—
|
118,313
|
|||||||||||||
Bonds
Peruvian Central Bank certificates notes
|
164,559
|
409,755
|
139,752
|
176,081
|
307,926
|
1,198,073
|
|||||||||||||
Other
investments
|
384,124
|
7,020
|
3,618
|
7,351
|
4,149
|
406,262
|
|||||||||||||
Total
Foreign Currency-denominated
|
US$
|
740,000
|
US$
|
418,138
|
US$
|
170,351
|
US$
|
276,080
|
US$
|
480,682
|
US$
|
2,085,251
|
|||||||
Total
securities holdings:
|
US$
|
3,159,1913
|
US$
|
925,329
|
US$
|
175,532
|
US$
|
341,769
|
US$
|
635,559
|
US$
|
5,238,102
|
|||||||
|
|||||||||||||||||||
Weighted
average yield
|
5.65
|
%
|
(1) |
Equity
securities in Credicorp’s account are categorized as maturing within one
year.
|
(iii)
|
Loan
Portfolio
|
On December 31,
|
||||||||||||||||
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
||||||||
(U.S. Dollars in thousands)
|
||||||||||||||||
Loans
|
US$
|
3,284,141
|
US$
|
3,507,831
|
US$
|
3,865,643
|
4,662,730
|
6,520,116
|
||||||||
Leasing
transactions
|
452,635
|
424,902
|
564,575
|
675,804
|
1,118,301
|
|||||||||||
Discounted
notes
|
176,991
|
183,519
|
213,232
|
256,534
|
325,047
|
|||||||||||
Factoring
|
56,446
|
58,116
|
87,757
|
89,171
|
109,928
|
|||||||||||
Advances
and overdrafts
|
45,827
|
48,506
|
49,283
|
84,262
|
127,486
|
|||||||||||
Refinanced
loans
|
296,116
|
243,892
|
175,211
|
126,006
|
88,451
|
|||||||||||
Past
due loans
|
256,208
|
159,057
|
95,769
|
76,770
|
61,488
|
|||||||||||
Unearned
interest
|
(86,868
|
)
|
(66,805
|
)
|
(78,495
|
)
|
(93,916
|
)
|
(166,972
|
)
|
||||||
Total
loans:
|
US$
|
4,481,496
|
US$
|
4,559,018
|
US$
|
4,972,975
|
US$
|
5,877,361
|
US$
|
8,183,845
|
||||||
Total
past due loans amounts
|
(256,208
|
)
|
(159,057
|
)
|
(95,769
|
)
|
(76,770
|
)
|
(61,488
|
)
|
||||||
Total
performing loans
|
US$
|
4,225,288
|
US$
|
4,399,961
|
US$
|
4,877,206
|
US$
|
5,800,591
|
US$
|
8,122,357
|
At December 31,
|
|||||||||||||||||||
2003
|
2004
|
2005
|
|||||||||||||||||
(U.S. Dollars in thousands, except percentages)
|
|||||||||||||||||||
Economic Activity
|
Amount
|
% Total
|
Amount
|
% Total
|
Amount
|
% Total
|
|||||||||||||
Manufacturing
|
US$
|
1,461,350
|
32.61
|
%
|
US$
|
1,376,874
|
30.20
|
%
|
US$
|
1,430,559
|
28.77
|
%
|
|||||||
Consumer
Loans (1)
|
1,033,881
|
23.07
|
1,187,378
|
26.04
|
1,364,910
|
27.45
|
|||||||||||||
Commerce
|
560,052
|
12.50
|
523,574
|
11.48
|
625,908
|
12.59
|
|||||||||||||
Realty
Businesses and Leasing Services
|
233,506
|
5.21
|
224,745
|
4.93
|
216,095
|
4.35
|
|||||||||||||
Mining
|
233,355
|
5.21
|
194,022
|
4.26
|
223,156
|
4.49
|
|||||||||||||
Communication,
Storage and Transportation
|
189,612
|
4.23
|
181,018
|
3.97
|
210,002
|
4.22
|
|||||||||||||
Electricity,
Gas and Water
|
211,610
|
4.72
|
248,571
|
5.45
|
192,096
|
3.86
|
|||||||||||||
Agriculture
|
142,697
|
3.18
|
160,167
|
3.51
|
153,410
|
3.08
|
|||||||||||||
Fishing
|
90,786
|
2.03
|
68,604
|
1.50
|
117,104
|
2.35
|
|||||||||||||
Financial
Services
|
96,371
|
2.15
|
90,042
|
1.98
|
105,484
|
2.12
|
|||||||||||||
Education,
Health and Other Services
|
99,702
|
2.22
|
62,341
|
1.37
|
69,468
|
1.40
|
|||||||||||||
Construction
|
70,676
|
1.58
|
72,879
|
1.60
|
68,217
|
1.37
|
|||||||||||||
Others
(2)
|
144,766
|
3.23
|
235,608
|
5.17
|
275,061
|
5.53
|
|||||||||||||
Sub
total
|
4,568,364
|
101.94
|
4,625,823
|
101.47
|
5,051,470
|
101.58
|
|||||||||||||
Unearned
interest
|
(86,868
|
)
|
-1.94
|
(66,805
|
)
|
-1.47
|
(78,495
|
)
|
-1.58
|
||||||||||
Total
|
US$
|
4,481,496
|
100.00
|
%
|
US$
|
4,559,018
|
100.00
|
%
|
US$
|
4,972,975
|
100.00
|
%
|
(1)
|
Includes
credit card and mortgage loans, other consumer loans and small
business.
|
(2) |
Includes
personal banking and small business loans and other
sectors.
|
At December 31,
|
|
||||||||||||
|
|
2006
|
|
2007
|
|
||||||||
|
|
(U.S. Dollars in thousands, except percentages)
|
|
||||||||||
Economy Activity
|
|
Amount
|
|
% Total
|
|
Amount
|
|
% Total
|
|
||||
Manufacturing
|
US$
|
1,624,765
|
27.65
|
%
|
US$
|
2,204,481
|
26.94
|
%
|
|||||
Consumer
Loans (1)
|
1,729,682
|
29.43
|
2,480,916
|
30.31
|
|||||||||
Commerce
|
686,291
|
11.68
|
884,253
|
10.80
|
|||||||||
Realty
Businesses and Leasing Services
|
236,445
|
5.16
|
387,180
|
4.73
|
|||||||||
Mining
|
303,238
|
4.36
|
463,577
|
5.66
|
|||||||||
Communication,
Storage and Transportation
|
255,730
|
2.55
|
394,986
|
4.83
|
|||||||||
Electricity,
Gas and Water
|
256,541
|
4.02
|
341,718
|
4.18
|
|||||||||
Agriculture
|
150,020
|
2.79
|
179,509
|
2.19
|
|||||||||
Fishing
|
152,538
|
1.27
|
134,235
|
1.64
|
|||||||||
Financial
Services
|
163,946
|
4.35
|
219,850
|
2.69
|
|||||||||
Education,
Health and Other Services
|
75,376
|
1.28
|
106,423
|
1.30
|
|||||||||
Construction
|
74,482
|
2.60
|
201,298
|
2.46
|
|||||||||
Others
(2)
|
262,223
|
4.46
|
352,391
|
4.31
|
|||||||||
Sub
total
|
5,971,277
|
101.60
|
8,350,817
|
102.04
|
|||||||||
Unearned
interest
|
(93,916
|
)
|
-1.60
|
(166,972
|
)
|
-2.04
|
|||||||
Total
|
5,877,361
|
100.00
|
%
|
8,183,845
|
100.00
|
%
|
(1)
|
Includes
credit card and mortgage loans, other consumer loans and small
business.
|
(2) |
Includes
personal banking and small business loans and other
sectors.
|
At December 31,
|
|||||||||||||||||||
2003
|
2004
|
2005
|
|||||||||||||||||
(U.S. Dollars in thousands, except percentages)
|
|||||||||||||||||||
Total loan
portfolio:
|
|||||||||||||||||||
Nuevo
Sol-denominated
|
US$
|
723,955
|
16.15
|
%
|
US$
|
662,058
|
14.52
|
%
|
US$
|
1,032,481
|
20.76
|
%
|
|||||||
Foreign
Currency-denominated
|
3,757,541
|
83.85
|
%
|
3,896,960
|
85.48
|
%
|
3,940,494
|
79.24
|
%
|
||||||||||
Total
loans (1)
|
US$
|
4,481,496
|
100.00
|
%
|
US$
|
4,559,018
|
100.00
|
%
|
US$
|
4,972,975
|
100.00
|
%
|
At December 31,
|
|||||||||||||
2006
|
2007
|
||||||||||||
(U.S. Dollars in thousands, except percentages)
|
|||||||||||||
Total loan portfolio:
|
|||||||||||||
Nuevo
Sol-denominated
|
US$
|
1503,306
|
25.58
|
%
|
US$
|
2,461,787
|
30.08
|
%
|
|||||
Foreign
Currency-denominated
|
4,374,055
|
74.42
|
%
|
5,722,058
|
69.92
|
%
|
|||||||
Total
loans (1)
|
US$
|
5,877,361
|
100.00
|
%
|
US$
|
8,183,845
|
100.00
|
%
|
(1) |
Net
of unearned interest.
|
Maturing
|
|||||||||||||||||||
Amount at
December 31,
2007
|
Within
3
months
|
After 3
months
but within
12 months
|
After 1 year
but within
3 years
|
After 3 years
but within
5 years
|
After 5
years
|
||||||||||||||
(U.S. Dollars in thousands, except percentages)
|
|||||||||||||||||||
Loans
|
US$
|
6,520,116
|
US$
|
2,581,571
|
US$
|
1,373,870
|
US$
|
990,849
|
US$
|
457,089
|
US$
|
1,116,736
|
|||||||
Leasing
transactions
|
1,118,301
|
268,338
|
159,508
|
432,984
|
197,334
|
60,136
|
|||||||||||||
Discounted
notes
|
325,047
|
310,585
|
14,386
|
75
|
—
|
—
|
|||||||||||||
Refinanced
loans
|
88,451
|
20,672
|
14,106
|
18,731
|
12,247
|
22,695
|
|||||||||||||
Factoring
|
109,928
|
108,466
|
1,032
|
430
|
—
|
—
|
|||||||||||||
Advances
and overdrafts
|
127,486
|
126,905
|
581
|
—
|
—
|
—
|
|||||||||||||
Total.
|
US$
|
8,289,329
|
US$
|
3,416,537
|
US$
|
1,583,484
|
US$
|
1,443,070
|
US$
|
666,670
|
US$
|
1,199,568
|
|||||||
Percentage
of total performing loan
portfolio
|
100.00
|
%
|
41.22
|
%
|
18.86
|
%
|
17.41
|
%
|
8.04
|
%
|
14.47
|
%
|
Amount at
December 31,
2007
|
|
Maturing After
1 year
|
|||||
(U.S. Dollars in thousands)
|
|||||||
Variable
Rate
|
|||||||
Nuevo
Sol-denominated
|
US$
|
309,781
|
US$
|
221,015
|
|||
Foreign
Currency-denominated
|
1,292,134
|
992,355
|
|||||
Total
|
1,601,914
|
1,213,370
|
|||||
Fixed
Rate (2)
|
|||||||
Nuevo
Sol-denominated
|
2,152,006
|
473,955
|
|||||
Foreign
Currency-denominated
|
4,429,924
|
1,457,076
|
|||||
Total
|
6,581,930
|
1,931,031
|
|||||
Total
(1)
|
US$
|
8,183,845
|
US$
|
3,144,401
|
(1) |
Net
of unearned interest
|
(2) |
Most
of financial products with fixed rates can be switched to variable
rates
according to market conditions as specified on the contracts with
clients.
|
At December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
(U.S.
Dollars in thousands)
|
||||||||||||||||
Commercial
loans
|
US$
|
3,680,491
|
US$
|
3,625,678
|
US$
|
3,771,488
|
US$
|
4,390,547
|
US$
|
6,055,206
|
||||||
Consumer
loans
|
251,785
|
283,410
|
356,595
|
506,184
|
874,804
|
|||||||||||
Residential
mortgage loans
|
549,220
|
649,930
|
844,892
|
980,630
|
1,253,835
|
|||||||||||
Total
performing loans (1)
|
US$
|
4,481,496
|
US$
|
4,559,018
|
US$
|
4,972,975
|
US$
|
5,877,361
|
US$
|
8,183,845
|
(1)
|
Net
of unearned interest.
|
At December 31,
|
|||||||||||||||||||
2003
|
2004
|
2005
|
|||||||||||||||||
(U.S. Dollars in thousands, except percentages)
|
|||||||||||||||||||
Level of Risk
|
|||||||||||||||||||
Classification
|
Amount
|
% Total
|
Amount
|
% Total
|
Amount
|
% Total
|
|||||||||||||
A:
Normal
|
US$
|
3,393,833
|
75.7
|
%
|
US$
|
3,719,973
|
81.6
|
%
|
US$
|
4,273,719
|
85.9
|
%
|
|||||||
B:
Potential Problems
|
437,682
|
9.8
|
336,619
|
7.4
|
397,387
|
8.0
|
%
|
||||||||||||
C:
Substandard
|
240,316
|
5.4
|
195,062
|
4.3
|
82,858
|
1.7
|
%
|
||||||||||||
D:
Doubtful
|
266,723
|
6.0
|
184,206
|
4.0
|
146,898
|
3.0
|
%
|
||||||||||||
E:
Loss
|
142,942
|
3.1
|
123,158
|
2.7
|
72,113
|
1.4
|
%
|
||||||||||||
Total
(1)
|
US$
|
4,481,496
|
100.00
|
%
|
US$
|
4,559,018
|
100.0
|
%
|
US$
|
4,972,975
|
100.0
|
%
|
|||||||
C+D+E
|
US$
|
649,981
|
14.5
|
%
|
US$
|
502,426
|
11.0
|
%
|
US$
|
301,869
|
6.1
|
%
|
At December 31,
|
|||||||||||||
2006
|
2007
|
||||||||||||
Level of Risk
|
|||||||||||||
Classification
|
Amount
|
% Total
|
Amount
|
% Total
|
|||||||||
A:
Normal
|
US$
|
5,296,653
|
90.1
|
%
|
US$
|
7,602,347
|
92.9
|
%
|
|||||
B:
Potential Problems
|
337,497
|
5.7
|
%
|
371,119
|
4.5
|
%
|
|||||||
C:
Substandard
|
62,192
|
1.1
|
%
|
71,340
|
0.9
|
%
|
|||||||
D:
Doubtful
|
122,215
|
2.1
|
%
|
88,540
|
1.1
|
%
|
|||||||
E:
Loss
|
58,804
|
1.0
|
%
|
50,499
|
0.6
|
%
|
|||||||
Total
(1)
|
US$
|
5,877,361
|
100.0
|
%
|
US$
|
8,183,845
|
100.0
|
%
|
|||||
C+D+E
|
US$
|
243,211
|
4.1
|
%
|
US$
|
210,379
|
2.6
|
%
|
At December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
(U.S. Dollars in thousands, except percentages)
|
||||||||||||||||
Current
|
US$
|
4,225,288
|
US$
|
4,399,961
|
US$
|
4,877,206
|
US$
|
5,800,591
|
US$
|
8,122,357
|
||||||
Past
due:
|
||||||||||||||||
Overdue
16-119 days
|
50,981
|
11,572
|
10,860
|
20,655
|
20,825
|
|||||||||||
Overdue
120 days or more
|
205,227
|
147,485
|
84,909
|
56,115
|
40,663
|
|||||||||||
Subtotal
|
US$
|
256,208
|
US$
|
159,057
|
US$
|
95,769
|
US$
|
76,770
|
US$
|
61,488
|
||||||
Total
loans
|
US$
|
4,481,496
|
US$
|
4,559,018
|
US$
|
4,972,975
|
US$
|
5,877,361
|
US$
|
8,183,845
|
||||||
Past
due loan amounts as a percentage of total loans
|
5.72
|
%
|
3.49
|
%
|
1.93
|
%
|
1.31
|
%
|
0.75
|
%
|
At December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
Past due loan amounts:
|
(U.S. Dollars in thousands)
|
|||||||||||||||
Loans
|
US$
|
194,761
|
US$
|
85,467
|
US$
|
63,889
|
US$
|
57,345
|
US$
|
48,088
|
||||||
Discounted
notes
|
1,531
|
776
|
1,124
|
596
|
636
|
|||||||||||
Advances
and overdrafts in demand deposits
|
3,400
|
4,157
|
3,412
|
1,844
|
3,974
|
|||||||||||
Leasing
transactions
|
8,716
|
9,387
|
6,412
|
5,237
|
2,110
|
|||||||||||
Refinanced
loans
|
47,800
|
59,270
|
20,932
|
11,748
|
6,680
|
|||||||||||
Total
past due portfolio
|
US$
|
256,208
|
US$
|
159,057
|
US$
|
95,769
|
US$
|
76,770
|
US$
|
61,488
|
||||||
Less:
Reserves for loan losses(1)
|
US$
|
326,677
|
US$
|
271,873
|
US$
|
218,636
|
US$
|
210,586
|
US$
|
229,700
|
||||||
Total
past due portfolio net of reserves
|
US$ |
(70,469
|
)
|
US$
|
(112,816
|
)
|
US$
|
(122,867
|
)
|
US$ |
(133,816
|
)
|
US$
|
(168,212
|
)
|
(1)
|
Includes
reserves for indirect credits (see -Loan Loss
Reserves).
|
Year ended December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
(U.S. Dollars in thousands)
|
||||||||||||||||
Reserves
for loan losses at the beginning of the year
|
US$
|
424,031
|
US$
|
326,677
|
US$
|
271,873
|
US$
|
218,636
|
US$
|
210,586
|
||||||
Additional
provisions (reversals)
|
66,421
|
16,131
|
(6,356
|
)
|
(4,243
|
)
|
28,439
|
|||||||||
Acquisitions
and transfers
|
—
|
—
|
(9,024
|
)
|
—
|
—
|
||||||||||
Recoveries
of write-offs
|
17,416
|
32,287
|
35,032
|
44,284
|
34,084
|
|||||||||||
Write-offs
|
(185,688
|
)
|
(105,267
|
)
|
(71,405
|
)
|
(49,859
|
)
|
(47,266
|
)
|
||||||
Monetary
correction and other
|
4,497
|
2,045
|
(1,484
|
)
|
1,768
|
3,857
|
||||||||||
Total
reserves for loan losses at the end of the year
|
US$
|
326,677
|
US$
|
271,873
|
US$
|
218,636
|
US$
|
210,586
|
US$
|
229,700
|
At December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
(U.S. Dollars in thousands)
|
||||||||||||||||
Commercial loans
|
US$
|
287,784
|
US$
|
236,419
|
US$
|
196,059
|
US$
|
183,374
|
US$
|
184,584
|
||||||
Consumer
loans
|
14,479
|
14,079
|
14,409
|
17,959
|
30,662
|
|||||||||||
Residential
mortgage loans
|
24,414
|
21,375
|
8,528
|
9,253
|
14,454
|
|||||||||||
Total
reserves
|
US$
|
326,677
|
US$
|
271,873
|
US$
|
218,636
|
US$
|
210,586
|
US$
|
229,700
|
(iv)
|
Deposits
|
At December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S. Dollars in thousands)
|
||||||||||
Demand
deposits:
|
||||||||||
Nuevo
Sol-denominated
|
US$
|
725,878
|
US$
|
996,246
|
US$
|
1,457,155
|
||||
Foreign
Currency-denominated
|
1,075,436
|
1,796,187
|
2,507,346
|
|||||||
Total
|
US$
|
1,801,314
|
2,792,433
|
3,964,501
|
||||||
Savings
deposits:
|
||||||||||
Nuevo
Sol-denominated
|
US$
|
483,695
|
US$
|
610,292
|
US$
|
877,205
|
||||
Foreign
Currency-denominated
|
1,621,669
|
1,341,686
|
1,503,699
|
|||||||
Total
|
US$
|
2,105,364
|
US$
|
1,951,978
|
US$
|
2,380,904
|
||||
Time
deposits:
|
||||||||||
Nuevo
Sol-denominated
|
US$
|
391,374
|
US$
|
862,901
|
US$
|
1,391,008
|
||||
Foreign
Currency-denominated
|
2,068,533
|
2,355,256
|
2,576,856
|
|||||||
Total
|
US$
|
2,459,907
|
US$
|
3,218,157
|
US$
|
3,967,864
|
||||
Foreign
Currency Bank Certificates Foreign Currency-denominated
|
US$
|
46,378
|
US$
|
61,539
|
US$
|
90,119
|
||||
Severance
Indemnity Deposits (CTS):
|
||||||||||
Nuevo
Sol-denominated
|
US$
|
70,435
|
US$
|
103,282
|
US$
|
149,308
|
||||
Foreign
Currency-denominated
|
584,356
|
671,745
|
746,975
|
|||||||
Total
|
US$
|
654,791
|
US$
|
775,027
|
US$
|
896,283
|
||||
Total
deposits:
|
||||||||||
Nuevo
Sol-denominated
|
US$
|
1,671,382
|
US$
|
2,572,721
|
US$
|
3,874,676
|
||||
Foreign
Currency-denominated
|
5,396,372
|
6,226,413
|
7,424,995
|
|||||||
Total
|
US$
|
7,067,754
|
US$
|
8,799,134
|
US$
|
11,299,671
|
At December 31, 2007
|
||||
(U.S. Dollars in thousands)
|
||||
Certificates
of deposit:
|
||||
Maturing
within 30 days
|
US$
|
3,949
|
||
Maturing
after 30 but within 60 days
|
1,853
|
|||
Maturing
after 60 but within 90 days
|
1,421
|
|||
Maturing
after 90 but within 180 days
|
9,449
|
|||
Maturing
after 180 but within 360 days
|
4,045
|
|||
Maturing
after 360 days
|
32,655
|
|||
Total
certificates of deposits
|
US$
|
53,372
|
||
Time
deposits:
|
||||
Maturing
within 30 days
|
US$
|
1,939,402
|
||
Maturing
after 30 but within 60 days
|
428,989
|
|||
Maturing
after 60 but within 90 days
|
324,879
|
|||
Maturing
after 90 but within 180 days
|
338,271
|
|||
Maturing
after 180 but within 360 days
|
315,006
|
|||
Maturing
after 360 days
|
306,398
|
|||
Total
time deposits
|
US$
|
3,652,945
|
||
Total
|
US$
|
3,706,317
|
·
|
Return
on Equity and Assets
|
At December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
Return
on assets (1)
|
1.81
|
%
|
1.92
|
%
|
2.29
|
%
|
||||
|
||||||||||
Return
on equity (2)
|
16.39
|
%
|
18.47
|
%
|
22.67
|
%
|
||||
Dividend
payout ratio (3)
|
48.24
|
%
|
45.08
|
%
|
34.11
|
%
|
||||
Equity
to assets ratio (4)
|
12.37
|
%
|
11.61
|
%
|
10.80
|
%
|
||||
Shareholders’
equity to assets ratio (5)
|
11.41
|
%
|
10.70
|
%
|
9.95
|
%
|
(1)
|
Net
income attributable to equity holders of Credicorp as a percentage
of
average total assets, computed as the average of period beginning
and
period ending balances.
|
(2)
|
Net
income attributable to equity holders of Credicorp as a percentage
of
average net equity attributable to Credicorp’s equity holders, computed as
the average of monthly balances.
|
(3)
|
Dividends
declared per share divided by net income attributable to Credicorp’s
equity holders per share.
|
(4)
|
Average
equity attributable to Credicorp’s equity holders divided by average total
assets, both averages computed as the average of month-ending
balances.
|
(5)
|
Average
equity attributable to Credicorp’s equity shareholders divided by average
total assets, both averages computed as the average of month-ending
balances.
|
At December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S. Dollars in thousands)
|
||||||||||
Year-end
balance
|
US$
|
878,237
|
US$
|
360,801
|
US$
|
878,183
|
||||
|
||||||||||
Average
balance
|
US$
|
307,930
|
US$
|
479,657
|
US$
|
247,437
|
||||
Maximum
quarter-end balance
|
US$
|
878,237
|
US$
|
792,609
|
US$
|
878,183
|
||||
Weighted
average nominal Year-end interest rate
|
4.38
|
% |
5.00
|
% |
4.70
|
% | ||||
Weighted
average nominal Interest rate
|
4.69
|
% |
4.81
|
% |
4.87
|
%
|
(C)
|
Organizational
Structure
|
(D)
|
Property,
Plants and Equipment
|
(A)
|
Operating
Results
|
Year ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Interest
income
|
US$
|
612,432
|
US$
|
782,002
|
US$
|
1,065,974
|
||||
Interest
expense
|
(173,159
|
)
|
(283,478
|
)
|
(432,000
|
)
|
||||
Net
interest income
|
US$
|
439,273
|
US$
|
498,524
|
US$
|
633,974
|
||||
Provision
for loan losses
|
6,356
|
4,243
|
(28,439
|
)
|
||||||
Net
interest income after Provision
|
US$
|
445,629
|
US$
|
502,767
|
US$
|
605,535
|
||||
Noninterest
income
|
265,985
|
338,894
|
517,920
|
|||||||
Insurance
premiums earned net of claims on insurance activities
|
43,455
|
64,739
|
58,672
|
|||||||
Other
expenses
|
(477,073
|
)
|
(585,058
|
)
|
(742,072
|
)
|
||||
Merger
costs
|
—
|
(5,706
|
)
|
—
|
||||||
Income
before translation result and income tax
|
US$
|
277,996
|
US$
|
315,636
|
US$
|
440,055
|
||||
Translation
result (loss) gain
|
US$
|
(9,597
|
)
|
US$
|
15,216
|
US$
|
34,627
|
|||
Income
tax
|
(73,546
|
)
|
(83,587
|
)
|
(102,287
|
)
|
||||
Net
income
|
US$
|
194,853
|
US$
|
247,265
|
US$
|
372,395
|
||||
Net
income attributable to:
|
||||||||||
Credicorp’s
shareholders
|
181,885
|
230,013
|
350,735
|
|||||||
Minority
interests
|
12,968
|
17,252
|
21,660
|
|||||||
Net
income
|
US$
|
194,853
|
US$
|
247,265
|
US$
|
372,395
|
Year ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Interest
income:
|
||||||||||
Loans
|
US$
|
447,392
|
US$
|
537,670
|
US$
|
701,471
|
||||
Deposits
in banks
|
13,073
|
36,916
|
58,896
|
|||||||
Deposits
in Central Bank
|
24,054
|
56,970
|
46,921
|
|||||||
Investment
securities and others
|
124,360
|
141,305
|
249,603
|
|||||||
Dividends
|
3,553
|
9,141
|
9,083
|
|||||||
Total
interest income
|
US$
|
612,432
|
US$
|
782,002
|
US$
|
1,065,974
|
||||
Interest
expense:
|
||||||||||
Saving
deposits
|
US$
|
9,234
|
US$
|
12,836
|
US$
|
19,869
|
||||
Time
deposits
|
101,254
|
160,565
|
263,487
|
|||||||
Issued
bonds
|
24,332
|
25,283
|
33,592
|
|||||||
Borrowing
from other financial institutions and others
|
21,422
|
60,013
|
89,929
|
|||||||
Demand
deposits
|
16,917
|
24,781
|
25,123
|
|||||||
Total
interest expense
|
US$
|
173,159
|
US$
|
283,478
|
US$
|
432,000
|
||||
Net
interest income
|
US$
|
439,273
|
US$
|
498,524
|
US$
|
633,974
|
Year ended December 31,
|
||||||||||||||||
2003
|
2004
|
2005
|
2006
|
2007
|
||||||||||||
(U.S.
Dollars in thousands)
|
||||||||||||||||
Reserves
for loan losses at the beginning of the year
|
US$
|
424,031
|
US$
|
326,677
|
US$
|
271,873
|
US$
|
218,636
|
US$
|
210,586
|
||||||
Provisions
|
66,421
|
16,131
|
(6,356
|
)
|
(4,243
|
)
|
28,439
|
|||||||||
Acquisitions
and sales
|
—
|
—
|
(9,024
|
)
|
—
|
—
|
||||||||||
Recoveries
of write-offs
|
17,416
|
32,287
|
35,032
|
44,284
|
34,084
|
|||||||||||
Write-offs
|
(185,688
|
)
|
(105,267
|
)
|
(71,405
|
)
|
(49,859
|
)
|
(47,266
|
)
|
||||||
Monetary
Correction and Other
|
4,497
|
2,045
|
(1,484
|
)
|
1,768
|
3,857
|
||||||||||
Reserves
for loan losses at the End of the year
|
US$
|
326,677
|
US$
|
271,873
|
US$
|
218,636
|
US$
|
210,586
|
229,700
|
Year ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Fees
and commissions from banking services
|
US$
|
206,163
|
US$
|
243,778
|
US$
|
324,761
|
||||
Net
gains from sales of securities
|
8,965
|
27,281
|
41,359
|
|||||||
Net
gains on foreign exchange transactions
|
29,286
|
41,638
|
61,778
|
|||||||
Other
income
|
21,571
|
26,197
|
90,022
|
|||||||
Total
non-interest income
|
US$
|
265,985
|
US$
|
338,894
|
US$
|
517,920
|
Year
ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Net
premiums earned
|
US$
|
218,955
|
US$
|
251,261
|
US$
|
297,272
|
||||
Net
claims incurred
|
(42,569
|
)
|
(46,587
|
)
|
(67,689
|
)
|
||||
Increase
in costs for future benefits for life and health policies
|
(132,931
|
)
|
(139,935
|
)
|
(170,911
|
)
|
||||
Total
net premiums and claims
|
US$
|
43,455
|
US$
|
64,739
|
US$
|
58,672
|
Year ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Salaries
and employee benefits
|
US$
|
236,347
|
US$
|
303,332
|
US$
|
409,037
|
||||
General
and administrative
|
138,294
|
172,304
|
206,966
|
|||||||
Depreciation
and amortization
|
38,728
|
50,317
|
51,013
|
|||||||
Provision
for assets seized
|
16,959
|
6,387
|
3,057
|
|||||||
Other
|
46,745
|
52,718
|
71,999
|
|||||||
Merger
costs
|
—
|
5,706
|
—
|
|||||||
Total
other expenses and merger costs
|
US$
|
477,073
|
US$
|
590,764
|
US$
|
742,072
|
(3)
Financial Condition
|
As of December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S. Dollars in thousands, except percentages)
|
||||||||||
Capital stock
|
539,498
|
539,498
|
539,498
|
|||||||
Legal
and other reserves
|
269,527
|
479,902
|
587,218
|
|||||||
Capital
stock, reserves and retained earnings of minority interest
|
61,251
|
37,281
|
38,929
|
|||||||
Accepted
Provisions for loan losses
|
49,169
|
58,562
|
82,261
|
|||||||
Subordinated
debt
|
31,276
|
140,086
|
294,648
|
|||||||
Total
|
950,721
|
1,255,329
|
1,542,554
|
|||||||
Less:
investment in multilateral organizations, banks and insurance companies
and goodwill
|
(69,254
|
)
|
(118,917
|
)
|
(122,387
|
)
|
||||
Total
Regulatory Capital(1)
|
881,467
|
1,136,412
|
1,420,167
|
|||||||
|
||||||||||
Financial
Entities Capital Ratio
|
||||||||||
Regulatory
Capital attributable to Financial Entities(1)
|
761,342
|
871,377
|
1,320,068
|
|||||||
Risk-weighted
Assets From Financial Entities(3)
|
5,810,046
|
7,273,023
|
10,313,188
|
|||||||
Capital
Ratio for Financial Entities (1)
/ (3)
|
13.10
|
%
|
11.98
|
%
|
12.80
|
%
|
||||
|
||||||||||
Minimum
Regulatory Capital Required (MRCR)(2)
|
||||||||||
MRCR
for Financial Entities(3)
|
559,074
|
690,045
|
890,643
|
|||||||
MRCR
for Insurance Entities(3)
|
88,019
|
100,447
|
112,261
|
|||||||
MRCR
for Other Entities(3)
|
101,348
|
60,437
|
66,849
|
|||||||
Total
Minimum Regulatory Capital Required
|
748,441
|
850,959
|
1,069,753
|
|||||||
Regulatory
capital as percentage of Minimum Regulatory Capital
Required
|
117.77
|
%
|
133.54
|
%
|
123.76
|
%
|
(1)
|
Total
Regulatory Capital and Financial Entities Regulatory Capital is
prepared
under the guidelines of the BIS I Accord (by the Basel Committee)
as
adopted by the SBS.
|
(2)
|
The
Minimum Regulatory Capital Required (MRCR) is prepared under the
guidelines of the BIS I Accord (by the Basel Committee) as adopted
by the
SBS, and must not exceed from the Total Regulatory Capital calculated.
The
Consolidated MRCR is calculated by the addition of the MRCR of
each one of
the entities.
|
(3)
|
Peruvian
Financial entities (BCP, Credileasing and Solución) has a MRCR of 9.09% of
the Risk-Weighted Assets (RWA). For ASB (Panama), the MRCR is 8%
of the
RWA. For ASHC (Cayman Islands), the MRCR is 15% of the RWA. For
BCB
(Bolivia), the MRCR is 10% of the RWA. For the Insurance companies,
MRCR
is calculated on the basis of the Solvency Margin, the guarantee
funds and
the credit risk. Other entities, with no MRCR must be considered
by the
sum of the capital, reserves and retained
earnings.
|
Liquidity
Risk
|
At December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Core
Deposits:
|
||||||||||
Demand
deposits
|
US$
|
1,801,314
|
US$
|
2,792,433
|
US$
|
3,964,501
|
||||
Savings
deposits
|
2,105,364
|
1,951,978
|
2,380,904
|
|||||||
Severance
indemnity deposits
|
654,791
|
775,027
|
896,283
|
|||||||
Total
core deposits
|
US$
|
4,561,469
|
US$
|
5,519,438
|
US$
|
7,241,688
|
||||
Other
Deposits:
|
||||||||||
Time
deposits
|
2,459,907
|
3,218,157
|
3,967,864
|
|||||||
Bank
certificates
|
46,378
|
61,539
|
90,119
|
|||||||
Total
deposits
|
US$
|
7,067,754
|
US$
|
8,799,134
|
US$
|
11,299,671
|
||||
Due
to banks and correspondents
|
US$
|
1,301,295
|
US$
|
936,534
|
US$
|
2,314,418
|
||||
Issued
bonds
|
425,611
|
508,493
|
694,982
|
|||||||
Total
sources of funds
|
US$
|
8,794,660
|
US$
|
10,244,161
|
US$
|
14,309,071
|
||||
Core
deposits as a percent of total deposits
|
64.5
|
%
|
62.7
|
%
|
64.1
|
%
|
||||
Core
deposits as a percent of total
sources of liquid funds
|
51.9
|
%
|
53.9
|
%
|
50.6
|
%
|
At December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Funds
at Central Bank
|
||||||||||
Deposits
|
US$
|
1,599,153
|
US$
|
1,405,853
|
US$
|
1,798,581
|
||||
Certificates
of deposits
|
US$
|
554,530
|
US$
|
1,110,002
|
US$
|
2,164,188
|
||||
BCRP-Repo
Transactions
|
US$
|
591,285
|
167,611
|
242,817
|
||||||
Total
funds at Central Bank
|
US$
|
2,744,968
|
US$
|
2,683,466
|
US$
|
4,502,586
|
||||
Total
funds at Central Bank of Perú as a percent of total
deposits
|
38.8
|
%
|
30.5
|
%
|
37.2
|
%
|
Years ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in millions)
|
||||||||||
Issued
bonds
|
||||||||||
Corporate
Bonds
|
US$
|
35.0
|
US$
|
47.2
|
US$
|
50.1
|
||||
Leasing
Bonds
|
40.0
|
0.0
|
39.6
|
|||||||
Subordinated
bonds
|
0.0
|
0.0
|
5.0
|
|||||||
Subordinated
debt
|
0.0
|
120.0
|
161.3
|
|||||||
Total
issuance
|
US$
|
75.0
|
US$
|
167.2
|
US$
|
256.0
|
(C)
|
Research
and Development, Patents and Licenses,
Etc.
|
(D)
|
Trend
Information
|
At December 31,
|
||||||||||
Year ended December
31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Contingent
Credits
|
||||||||||
Guarantees
and stand by letters
|
US$
|
982,044
|
US$
|
1,204,500
|
US$
|
1,133,476
|
||||
Import
and export letters of credit
|
238,902
|
250,876
|
431,049
|
|||||||
Sub
Total
|
1,220,946
|
1,455,376
|
1,564,525
|
|||||||
|
||||||||||
Responsibilities
under credit line agreements
|
531,816
|
814,746
|
1,082,115
|
|||||||
Financial
derivative contracts, net
|
310,944
|
(30,970
|
)
|
(331,117
|
)
|
|||||
Swap
contracts
|
572,160
|
543,041
|
1,446,813
|
|||||||
Total
|
US$
|
2,635,866
|
US$
|
2,782,193
|
US$
|
3,762,336
|
(F)
|
Tabular
Disclosure of Contractual
Obligations
|
Payments due by period
|
||||||||||||||||
Total at
December 31,
2007
|
Less than
1 year
|
1–3
years
|
3–5
years
|
More than
5 years
|
||||||||||||
(U.S.
Dollars in thousands)
|
||||||||||||||||
Borrowed
funds
|
US$
|
2,015,744
|
US$
|
784,643
|
US$
|
416,623
|
US$
|
404,636
|
US$
|
409,842
|
||||||
Promotional
credit lines
|
196,204
|
98,375
|
71,100
|
4,534
|
22,195
|
|||||||||||
Interbank
funds
|
102,470
|
102,470
|
—
|
—
|
—
|
|||||||||||
Time
deposits
|
3,967,863
|
3,643,668
|
254,750
|
30,743
|
38,702
|
|||||||||||
Operating
lease obligations
|
54,806
|
9,270
|
14,471
|
11,491
|
19,574
|
|||||||||||
Total.
|
US$
|
6,337,087
|
US$
|
4,638,426
|
US$
|
756,944
|
US$
|
451,404
|
US$
|
490,313
|
·
|
In
November 2005 BCP entered into a loan transaction for US$230.0
million,
related to Series 2005-A Floating Rate Certificates due 2012, and
US$50.0
million related to Series 2005-B Floating Rate Certificates due
2009. The
loan is secured by the collection of BCP’s future inflows from electronic
messages sent through the Society for Worldwide Interbank Financial
Telecommunications network and utilized within the network to instruct
the
corresponding bank to make payments to beneficiaries that are not
financial institutions. In this transaction, Wilmington Trust Company
acted as trustee under the trust agreement and The Bank of New
York acted
as indenture trustee and administrator of the contract. The certificates
bear a variable interest rate of one month Libor plus 0.21% for
the 2005-A
Series and one month Libor plus 0.60% for the Series 2005-B. As
of
December 31, 2007 and 2006, the balance of this obligation amounted
to
US$280.0 million. A portion (70%), of the loan, subject to variable
interest rate risk, has been hedged through an interest rate swap
hedge
operation for a notional amount of US$196.0 million (see Note 21(d)
to the
Credicorp Consolidated Financial
Statements).
|
·
|
The
promotional credit lines represent loans granted to BCP by Corporación
Financiera de Desarrollo (COFIDE) and Banco Interamericano de Desarrollo
(Inter-American Development Bank or IDB), to promote the development
of
Peru, have maturities between March 2008 and December 2027 and
their
interest rates range between 5.73 and 7.75%. These credit lines
are
secured by a loan portfolio totaling US$196.2 million and US$177.9
million
as of December 31, 2007 and December 31, 2006, respectively. These
lines
include covenants specifying the use of the funds, financial conditions
that the borrower must maintain and other administrative matters.
In
Management’s opinion, these covenants do not limit Credicorp’s operations
and at the balance sheet date, Credicorp is not in violation of
these
covenants.
|
ITEM
6.
|
DIRECTORS,
SENIOR MANAGEMENT AND
EMPLOYEES
|
(A)
|
Directors
and Senior Management
|
Board
of Directors
|
Name
|
Position
|
Years served as a
Director(1)
|
|||||
Dionisio Romero
|
Chairman
|
38
|
|||||
Luis
Nicolini
|
Vice
Chairman
|
32
|
(2)
|
||||
Fernando
Fort
|
Director
|
26
|
|||||
Reynaldo
Llosa
|
Director
|
25
|
|||||
Juan
Carlos Verme
|
Director
|
18
|
|||||
Luis
Enrique Yarur
|
Director
|
12
|
|||||
Felipe
Ortiz de Zevallos
|
Director
|
3
|
(3)
|
||||
Germán
Suárez
|
Director
|
3
|
(3)
|
(1)
|
Of
Credicorp, its subsidiaries and their predecessors as of December 31,
2007.
|
(2)
|
Mr.
Nicolini resigned as a Director in April 2008 and was replaced
by Mr.
Raimundo Morales.
|
(3)
|
Elected
at the Annual General Shareholders’ Meeting on March 31,
2005.
|
Name
|
Position
|
Years Served as
an Officer(1)
|
|||||
Dionisio
Romero
|
Chief
Executive Officer
|
38
|
(2)
|
||||
Raimundo
Morales
|
Chief
Operating Officer (until April 2008)
|
|
28
|
(3)
|
|||
Walter
Bayly
|
Chief
Operating Officer (from April 2008)
Chief
Financial and Accounting Officer (until April 2008)
|
|
15
|
||||
Carlos
Muñoz
|
Executive
Vice President (until April 2008)
|
|
27
|
||||
Alvaro
Correa
|
Chief
Financial and Accounting Officer (from April 2008)
|
|
15
|
(4)
|
|||
José
Luis Gagliardi
|
Senior
Vice President, Administration and Human Resources
|
27
|
(5)
|
||||
David
Saettone
|
Senior
Vice President, Insurance
|
10
|
(1) |
Of
Credicorp, its subsidiaries and their predecessors as of December
31,
2007.
|
(2) |
Mr.
Romero served as an officer of BCP from 1966 through 1987 and from
1990 to
the present. Mr. Romero has been an officer of PPS since
1972.
|
(3) |
Mr.
Morales resigned as COO of Credicorp in October 2007 and was appointed
Director and Vice Chairman of Credicorp in April
2008.
|
(4) |
As
of April 2008, Mr. Alvaro Correa is the Chief Financial and Accounting
Officer.
|
(5) |
Mr.
Gagliardi served as an officer of BCP from 1981 through
1988.
|
(B)
|
Compensation
|
Year
|
Number of Outstanding
SARs granted
|
Exercise
price in US$
|
|||||
2000
|
509,000
|
8.50
|
|||||
2001
|
|
555,000
|
5.30
|
||||
2002
|
558,750
|
6.98
|
|||||
2003
|
562,500
|
8.17
|
|||||
2004
|
570,000
|
10.99
|
|||||
2005
|
585,000
|
16.00
|
|||||
2006
|
621,000
|
25.32
|
|||||
2007
|
689,500
|
48.50
|
2007
|
2006
|
||||||||||||||||||
Outstanding
SARs
|
Vested
SARs
|
Outstanding
SARs
|
Vested
SARs
|
||||||||||||||||
Number
|
Number
|
Amount
|
Number
|
Number
|
Amount
|
||||||||||||||
US$(000)
|
US$(000)
|
||||||||||||||||||
Balance
as of January 1st
|
1,858,350
|
1,301,928
|
38,761
|
2,201,275
|
1,658,932
|
22,813
|
|||||||||||||
Granted
and vested
|
689,500
|
647,610
|
22,248
|
621,000
|
600,046
|
12,838
|
|||||||||||||
Exercised
|
(410,700
|
)
|
(410,700
|
)
|
(18,801
|
)
|
(948,925
|
)
|
(948,925
|
)
|
(29,292
|
)
|
|||||||
Decrease
|
(2,500
|
)
|
(1,719
|
)
|
(88
|
)
|
(15,000
|
)
|
(8,125
|
)
|
(232
|
)
|
|||||||
Increase
in the option
fair value
|
-
|
-
|
47,482
|
-
|
-
|
32,634
|
|||||||||||||
Balance
as of December 31
|
2,134,650
|
1,537,119
|
89,602
|
1,858,350
|
1,301,928
|
38,761
|
Year of
Insurance
|
Number
of outstanding
SARs as of
December 31,
2007
|
Number of Vested SARs
as of December 31
|
Exercise price
|
|||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
US$
|
US$
|
|||||||||||||||
2000
|
49,750
|
49,750
|
68,750
|
8.50
|
8.80
|
|||||||||||
2001
|
73,000
|
73,000
|
81,500
|
5.30
|
5.60
|
|||||||||||
2002
|
92,500
|
92,500
|
117,500
|
6.98
|
7.28
|
|||||||||||
2003
|
151,900
|
151,900
|
220,000
|
8.17
|
8.47
|
|||||||||||
2004
|
237,700
|
237,700
|
317,984
|
10.99
|
11.29
|
|||||||||||
2005
|
384,500
|
349,813
|
281,038
|
16.00
|
16.30
|
|||||||||||
2006
|
497,050
|
310,800
|
215,156
|
25.32
|
25.62
|
|||||||||||
2007
|
648,250
|
271,656
|
-
|
48.50
|
-
|
|||||||||||
2,134,650
|
1,537,119
|
1,301,928
|
(C)
|
Board
Practices
|
(D)
|
Employees
|
At December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(Full-time employees)
|
||||||||||
BCP
|
7,568
|
8,243
|
9,593
|
|||||||
PPS
|
1,099
|
1,159
|
1,665
|
|||||||
ASHC
|
57
|
61
|
65
|
|||||||
Prima
AFP
|
457
|
1,729
|
1,464
|
|||||||
Others
|
363
|
340
|
350
|
|||||||
Total
Credicorp
|
9,544
|
11,532
|
13,149
|
(E)
|
Share
Ownership
|
ITEM
7.
|
MAJOR
SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS
|
(A)
|
Major
Shareholders
|
Owner
|
Common
Shares
|
Percent of
Class(1)
|
|||||
Romero family(2)
|
14,930,289
|
15.82
|
%
|
||||
Atlantic
Security Holding Corporation
|
14,620,845
|
15.49
|
%
|
||||
AFP
Integra
|
5,901,429
|
6.25
|
%
|
||||
AFP
Prima
|
5,842,328
|
6.19
|
%
|
(1) |
As
a percentage of issued and outstanding shares (including shares
held by
ASHC).
|
(2) |
Includes
Common Shares directly or indirectly owned by Dionisio Romero and
his
family or companies owned or controlled by him. Mr. Romero is the
Chairman
and Chief Executive Officer of
Credicorp.
|
(B)
|
Related
Party Transactions
|
(i) |
Credicorp
|
Related companies
|
||||||||||
2005
|
2006
|
2007
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Direct
loans
|
48,533
|
70,636
|
94,102
|
|||||||
Investments
available-for-sale
|
45,208
|
62,125
|
90,396
|
|||||||
Deposits
|
21,305
|
25,074
|
31,689
|
|||||||
Contingent
credits
|
8,379
|
13,925
|
14,026
|
|||||||
Interest
income related to loans
|
1,991
|
2,097
|
2,288
|
|||||||
Interest
expense related to deposits
|
991
|
1,505
|
2,009
|
|||||||
Investments
available-for-sale cost
|
-
|
-
|
1,673
|
|||||||
Derivatives
at fair value
|
388
|
179
|
386
|
|||||||
Other
income
|
546
|
953
|
1,192
|
2005
|
2006
|
2007
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Stock
appreciation rights
|
7,284
|
23,206
|
27,113
|
|||||||
Salaries
|
4,357
|
4,824
|
5,535
|
|||||||
Director
compensations
|
1,115
|
1,173
|
1,162
|
|||||||
Other
|
2,185
|
6,962
|
12,947
|
|||||||
Total
|
14,941
|
36,165
|
46,757
|
(C)
|
Interests
of Experts and Counsel
|
ITEM
8.
|
FINANCIAL
INFORMATION
|
(A)
|
Consolidated
Statements and Other Financial
Information
|
Legal
Proceedings
|
Year ended December 31,
|
Number of Shares
Entitled
to Dividends
|
Cash Dividends
Per Share
|
Stock Dividends
Per Share
|
|||||||
1999
|
94,382,317
|
US$
|
0.20
|
0.00
|
||||||
2000
|
94,382,317
|
US$
|
0.10
|
0.00
|
||||||
2001
|
94,382,317
|
US$
|
0.10
|
0.00
|
||||||
2002
|
94,382,317
|
US$
|
0.40
|
0.00
|
||||||
2003
|
94,382,317
|
US$
|
0.30
|
0.00
|
||||||
2004
|
94,382,317
|
US$
|
0.40
|
0.00
|
||||||
2005
|
94,382,317
|
US$
|
0.80
|
0.00
|
||||||
2006
|
94,382,317
|
US$
|
1.10
|
0.00
|
||||||
2007
|
94,382,317
|
US$
|
1.30
|
0.00
|
(A)
|
Offer
and Listing Details
|
High
|
Low
|
Average
Daily
Volume
|
||||||||
2003
|
US$
|
13.38
|
US$
|
9.35
|
41,931
|
|||||
2004
|
US$
|
15.87
|
US$
|
12.00
|
22,184
|
|||||
2005
|
US$
|
28.81
|
US$
|
14.41
|
82,338
|
|||||
2006
|
US$
|
45.42
|
US$
|
21.88
|
176,388
|
|||||
2007
|
US$
|
76.81
|
US$
|
38.04
|
279,602
|
|||||
2006
|
||||||||||
First
quarter
|
US$
|
28.99
|
US$
|
21.88
|
145,969
|
|||||
Second
quarter
|
US$
|
29.21
|
US$
|
24.81
|
178.809
|
|||||
Third
quarter
|
US$
|
41.17
|
US$
|
28.13
|
206,243
|
|||||
Fourth
quarter
|
US$
|
45.42
|
US$
|
38.42
|
154,515
|
|||||
2007
|
||||||||||
First
quarter
|
US$
|
51.68
|
US$
|
38.80
|
283,922
|
|||||
Second
quarter
|
US$
|
61.95
|
US$
|
47.92
|
277,383
|
|||||
Third
quarter
|
US$
|
66.39
|
US$
|
55.50
|
303,425
|
|||||
Fourth
quarter
|
US$
|
76.81
|
US$
|
65.14
|
244,437
|
|||||
2008
|
||||||||||
First
quarter
|
US$
|
78.69
|
US$
|
68.63
|
356,633
|
|||||
Second
quarter (through June 6)
|
US$
|
85.27
|
US$
|
73.56
|
348,050
|
High
|
Low
|
Average
Daily
Volume
|
||||||||
U.S.
Dollars
|
||||||||||
2003
|
12.60
|
9.38
|
29,701
|
|||||||
2004
|
15.70
|
12.08
|
21,564
|
|||||||
2005
|
28.99
|
14.33
|
15,744
|
|||||||
2006
|
45.58
|
38.27
|
16,950
|
|||||||
2007
|
76.48
|
38.24
|
22,553
|
|||||||
2006
|
||||||||||
First
quarter
|
28.99
|
22.41
|
9,277
|
|||||||
Second
quarter
|
28.96
|
24.83
|
19,336
|
|||||||
Third
quarter
|
40.95
|
27.96
|
11,625
|
|||||||
Fourth
quarter
|
45.58
|
38.27
|
27,562
|
|||||||
2007
|
||||||||||
First
quarter
|
51.68
|
39.00
|
14,553
|
|||||||
Second
quarter
|
61.80
|
47.93
|
42,703
|
|||||||
Third
quarter
|
65.99
|
54.91
|
19,282
|
|||||||
Fourth
quarter
|
76.48
|
65.20
|
18,934
|
|||||||
2008
|
||||||||||
First
quarter
|
78.56
|
68.64
|
11,150
|
|||||||
Second
quarter (through June 6)
|
84.80
|
73.54
|
12,763
|
High
|
Low
|
||||||
U.S.
Dollars
|
|||||||
2007
|
|||||||
December
|
76.81
|
71.61
|
|||||
2008
|
|||||||
January
|
78.69
|
68.63
|
|||||
February
|
74.21
|
69.42
|
|||||
March
|
73.67
|
69.87
|
|||||
April
|
80.36
|
73.56
|
|||||
May
|
83.46
|
80.49
|
|||||
June
(through June 6)
|
85.27
|
83.11
|
High
|
Low
|
||||||
U.S.
Dollars
|
|||||||
2007
|
|||||||
December
|
76.48
|
71.19
|
|||||
2008
|
|||||||
January
|
78.56
|
68.64
|
|||||
February
|
74.52
|
69.13
|
|||||
March
|
73.98
|
70.12
|
|||||
April
|
80.90
|
77.50
|
|||||
May
|
83.20
|
80.25
|
|||||
June
(through June 6)
|
84.80
|
84.00
|
(B)
|
Plan
of Distribution
|
(C)
|
Markets
|
(i)
|
Trading
|
(D)
|
Selling
Shareholders
|
(E)
|
Dilution
|
(F)
|
Expenses
of the issue
|
ITEM
10.
|
ADDITIONAL
INFORMATION
|
(A)
|
Share
Capital
|
(B)
|
Memorandum
and Articles of
Association
|
(C)
|
Material
Contracts
|
(D)
|
Exchange
Controls
|
(E)
|
Taxation
|
(F)
|
Dividends
and Paying Agents
|
(G)
|
Statement
by Experts
|
(H)
|
Documents
on Display
|
(I)
|
Subsidiary
Information
|
US$(000)
|
||||
Equity
securities
|
5,211
|
|||
Fixed
Income
|
567
|
|||
Derivatives
|
626
|
|||
Consolidated
VaR by type of asset
|
5,261
|
US$(000)
|
||||
Foreign
exchange risk
|
133
|
|||
Interest
rate risk
|
514
|
|||
Equity
risk
|
4,879
|
|||
Consolidated
VaR by risk type
|
5,261
|
As of December 31, 2007
|
||||||||||||||||||||||
Up to 1
month
|
1 to 3
months
|
3 to 12
months
|
1 to 5 years
|
More than
5 years
|
Non-interest
bearing
|
Total
|
||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||
Assets
|
||||||||||||||||||||||
Cash
and due from banks
|
2,331,637
|
31,074
|
48,172
|
42,045
|
19
|
620,918
|
3,073,865
|
|||||||||||||||
Investments
|
567,613
|
680,272
|
1,974,368
|
837,269
|
842,317
|
377,797
|
5,279,636
|
|||||||||||||||
Loans
|
2,078,657
|
2,294,056
|
1,499,311
|
2,051,629
|
115,847
|
-
|
8,039,500
|
|||||||||||||||
Assets
designated at fair value through profit and loss
|
-
|
-
|
50,561
|
-
|
-
|
162,592
|
213,153
|
|||||||||||||||
Premiums
and other policies receivables
|
-
|
-
|
-
|
-
|
-
|
85,495
|
85,495
|
|||||||||||||||
Accounts
receivable from re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
116,141
|
116,141
|
|||||||||||||||
Other
assets
|
-
|
-
|
-
|
-
|
-
|
898,108
|
898,108
|
|||||||||||||||
Total
assets
|
4,977,907
|
3,005,402
|
3,572,412
|
2,930,943
|
958,183
|
2,261,051
|
17,705,898
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||||
Deposits
and obligations
|
3,358,599
|
3,089,841
|
1,709,965
|
263,913
|
2,088
|
2,926,308
|
11,350,714
|
|||||||||||||||
Financial
liabilities designated at fair value through profit and loss
|
-
|
-
|
50,561
|
-
|
-
|
-
|
50,561
|
|||||||||||||||
Due
to banks and correspondents
|
484,560
|
437,345
|
303,506
|
198,357
|
21,296
|
8,197
|
1,453,261
|
|||||||||||||||
Accounts
payable to re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
21,914
|
21,914
|
|||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
1,626
|
4,878
|
14,634
|
95,017
|
305,039
|
394,333
|
815,527
|
|||||||||||||||
Borrowed
funds
|
-
|
870,404
|
-
|
-
|
-
|
-
|
870,404
|
|||||||||||||||
Bonds
and subordinated notes issued
|
101,521
|
34,520
|
54,546
|
176,924
|
328,147
|
6,640
|
702,298
|
|||||||||||||||
Other
liabilities
|
-
|
-
|
8,275
|
-
|
-
|
617,671
|
625,946
|
|||||||||||||||
Equity
|
-
|
-
|
-
|
-
|
-
|
1,815,273
|
1,815,273
|
|||||||||||||||
Total
liabilities and equity
|
3,946,306
|
4,436,988
|
2,141,487
|
734,211
|
656,570
|
5,790,336
|
17,705,898
|
|||||||||||||||
Off-Balance
sheet items
|
||||||||||||||||||||||
Derivatives
assets
|
1,746,686
|
724,850
|
719,635
|
349,552
|
116,269
|
-
|
3,656,992
|
|||||||||||||||
Derivatives
liabilities
|
967,415
|
617,771
|
801,599
|
806,626
|
463,581
|
-
|
3,656,992
|
|||||||||||||||
779,271
|
107,079
|
(81,964
|
)
|
(457,074
|
)
|
(347,312
|
)
|
-
|
-
|
|||||||||||||
Marginal
gap
|
1,810,872
|
(1,324,507
|
)
|
1,348,961
|
1,739,658
|
(45,699
|
)
|
(3,529,285
|
)
|
-
|
||||||||||||
Accumulated
gap
|
1,810,872
|
486,365
|
1,835,326
|
3,574,984
|
3,529,285
|
-
|
-
|
Currency
|
Changes in basis
points
|
Sensitivity of net
income
|
Sensitivity of Equity
|
|||||
US$(000)
|
US$(000)
|
|||||||
U.S.
Dollar
|
+/-
|
50
|
+/-
|
7,652
|
-/+
|
20,205
|
||
U.S.
Dollar
|
+/-
|
75
|
+/-
|
11,479
|
-/+
|
30,307
|
||
U.S.
Dollar
|
+/-
|
100
|
+/-
|
15,305
|
-/+
|
40,408
|
||
U.S.
Dollar
|
+/-
|
150
|
+/-
|
22,957
|
-/+
|
60,613
|
||
Peruvian
Currency
|
+/-
|
50
|
-/+
|
2,966
|
-/+
|
20,705
|
||
Peruvian
Currency
|
+/-
|
75
|
-/+
|
4,448
|
-/+
|
31,056
|
||
Peruvian
Currency
|
+/-
|
100
|
-/+
|
5,932
|
-/+
|
41,409
|
||
Peruvian
Currency
|
+/-
|
150
|
-/+
|
8,897
|
-/+
|
62,114
|
Market price sensitivity
|
Changes in
market prices
|
As of December 31,
2007
|
|||
%
|
US$(000)
|
||||
Equity
securities
|
+/-
|
10
|
+/-
|
32,088
|
|
Equity
securities
|
+/-
|
15
|
+/-
|
48,132
|
|
Mutual
funds
|
+/-
|
10
|
+/-
|
20,008
|
|
Mutual
funds
|
+/-
|
15
|
+/-
|
30,013
|
U.S. Dollars
|
Peruvian
currency
|
Other
currencies
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Monetary
assets -
|
|||||||||||||
Cash
and due from banks
|
2,644,858
|
311,828
|
117,179
|
3,073,865
|
|||||||||
Trading
securities
|
38,647
|
11,463
|
885
|
50,995
|
|||||||||
Available-for-sale
investments
|
1,934,672
|
3,129,351
|
164,618
|
5,228,641
|
|||||||||
Loans,
net
|
5,555,864
|
2,450,297
|
33,339
|
8,039,500
|
|||||||||
Financial
assets designated to fair value through profit and loss
|
213,153
|
-
|
-
|
213,153
|
|||||||||
Other
assets
|
261,102
|
299,695
|
9,745
|
570,542
|
|||||||||
10,648,296
|
6,202,634
|
325,766
|
17,176,696
|
||||||||||
Monetary
liabilities -
|
|||||||||||||
Deposits
and obligations
|
(7,173,362
|
)
|
(3,892,138
|
)
|
(285,214
|
)
|
(11,350,714
|
)
|
|||||
Due
to bank and correspondents and borrowed funds
|
(2,071,882
|
)
|
(248,362
|
)
|
(3,421
|
)
|
(2,323,665
|
)
|
|||||
Financial
liabilities designated at fair value through profits and
loss
|
(50,561
|
)
|
-
|
-
|
(50,561
|
)
|
|||||||
Bonds
and subordinated notes issued
|
(329,567
|
)
|
(372,731
|
)
|
-
|
(702,298
|
)
|
||||||
Other
liabilities
|
(1,040,179
|
)
|
(434,353
|
)
|
11,144
|
(1,463,388
|
)
|
||||||
(10,665,551
|
)
|
(4,947,584
|
)
|
(277,491
|
)
|
(15,890,626
|
)
|
||||||
(17,255
|
)
|
1,255,050
|
48,275
|
1,286,070
|
|||||||||
Forwards
position, net
|
331,117
|
(273,971
|
)
|
(57,146
|
)
|
-
|
|||||||
Net
monetary position
|
313,862
|
981,079
|
(8,871
|
)
|
1,286,070
|
Sensitivity Analysis
|
Change in
currency rates
|
2007
|
|||||
%
|
US$(000)
|
||||||
Devaluation
-
|
|||||||
Peruvian
Currency
|
5
|
(51,636
|
)
|
||||
Peruvian
Currency
|
10
|
(109,009
|
)
|
||||
Revaluation
-
|
|||||||
Peruvian
Currency
|
5
|
46,718
|
|||||
Peruvian
Currency
|
10
|
89,189
|
ITEM
12.
|
DESCRIPTION
OF SECURITIES OTHER THAN EQUITY
SECURITIES
|
ITEM
13.
|
DEFAULTS,
DIVIDEND ARREARAGES AND
DELINQUENCIES
|
(A)
|
Material
Defaults
|
(B)
|
Dividend
Arrearages and
Delinquencies
|
ITEM
14.
|
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
|
ITEM
15.
|
CONTROLS
AND PROCEDURES
|
·
|
Pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect transactions and dispositions of
assets;
|
·
|
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation and fair presentation of financial statements, and
the
receipts and expenditures of the company are being made only in
accordance
with authorizations of Credicorp management;
and
|
·
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the company’s assets that
could have a material effect on the financial
statements.
|
By:
|
/s/
DIONISIO ROMERO
|
By:
|
/s/
ALAVARO CORREA
|
|
Name:
|
Dionisio
Romero
|
Name:
|
Alvaro
Correa
|
|
Title:
|
Chief
Executive Officer
|
Title:
|
Chief Financial and Accounting Officer
|
|
June 11, 2008
|
ITEM
16A.
|
AUDIT
COMMITTEE FINANCIAL EXPERT
|
ITEM
16B.
|
CODE
OF ETHICS
|
ITEM
16C.
|
PRINCIPAL
ACCOUNTANT FEES AND
SERVICES
|
Years
ended December 31,
|
||||||||||
2005
|
2006
|
2007
|
||||||||
(U.S.
Dollars in thousands)
|
||||||||||
Audit
|
US$
|
1,293
|
US$
|
1,779
|
2,264
|
|||||
Audit
– Related
|
—
|
61
|
—
|
|||||||
Tax
|
21
|
15
|
28
|
|||||||
All
Other
|
557
|
29
|
32
|
|||||||
Total
|
US$
|
1,871
|
US$
|
1,884
|
US$
|
2,323
|
ITEM
16D.
|
EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT
COMMITTEES
|
ITEM
16E.
|
PURCHASES
OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
|
ITEM
17.
|
FINANCIAL
STATEMENTS
|
ITEM
18.
|
FINANCIAL
STATEMENTS
|
Page
|
||||
Index
to Credicorp Consolidated Financial Statements
|
F-2
|
|||
|
||||
Report
of Medina, Zaldívar, Paredes & Asociados, members of Ernst & Young
Global, Independent Public Accountants
|
F-3
|
|||
|
||||
Consolidated
Balance Sheets as of December 31, 2007 and 2006
|
F-5
|
|||
|
||||
Consolidated
Income Statements for the Three Years in the Period Ended
December 31, 2007
|
F-7
|
|||
|
||||
Consolidated
Statements of Changes in Equity for the Three Years in the Period
Ended
December 31, 2007
|
F-9
|
|||
|
||||
Consolidated
Cash Flow Statements for the Three Years in the Period Ended
December 31, 2007
|
F-11
|
|||
|
||||
Notes
to Consolidated Financial Statements
|
F-13
|
ITEM
19.
|
EXHIBITS
|
1.1
|
Bye-laws
of Credicorp Ltd., incorporated herein by reference to Exhibit 1.1
to
Credicorp’s Annual Report on Form 20-F dated June 30,
2005
|
1.2
|
Memorandum
of Association of Credicorp Ltd., incorporated herein by reference
to
Exhibit 1.2 to Credicorp’s Annual Report on Form 20-F dated June 27,
2003
|
8
|
List
of Subsidiaries, incorporated herein by reference to Exhibit 8 to
Credicorp’s Annual Report on Form 20-F dated June 27,
2003
|
12.1
|
Certification
by the Chief Executive Officer Pursuant to Section 302 of the U.S.
Sarbanes-Oxley Act of 2002
|
12.2
|
Certification
by the Chief Financial and Accounting Officer Pursuant to Section
302 of
the U.S. Sarbanes-Oxley Act of 2002
|
13.1
|
Certification
by the Chief Executive Officer Pursuant to Section 906 of the U.S.
Sarbanes-Oxley Act of 2002
|
13.2
|
Certification
by the Chief Financial and Accounting Officer Pursuant to Section
906 of
the U.S. Sarbanes-Oxley Act of 2002
|
By:
|
/s/
ALVARO CORREA
|
Alvaro
Correa
|
|
Title:
|
Chief
Financial and Accounting Officer
|
Report
of Independent Registered Public Accounting Firm
|
F-3
|
Consolidated
financial statements
|
F-2 |
Consolidated
balance sheets
|
F-5 |
Consolidated
income statements
|
|
Consolidated
statements of changes in equity
|
F-7 |
Consolidated
cash flows statements
|
|
F-9 |
Note
|
2007
|
2006
|
||||||||
US$(000)
|
US$(000)
|
|||||||||
Assets
|
||||||||||
Cash
and due from banks:
|
4
|
|||||||||
Non-interest
bearing
|
620,918
|
474,859
|
||||||||
Interest
bearing
|
2,452,947
|
2,258,671
|
||||||||
3,073,865
|
2,733,530
|
|||||||||
Investments:
|
||||||||||
Trading
securities
|
5
|
50,995
|
45,136
|
|||||||
Investments
available-for-sale
|
6
|
5,228,641
|
3,450,711
|
|||||||
5,279,636
|
3,495,847
|
|||||||||
Loans,
net:
|
7
|
|||||||||
Loans,
net of unearned income
|
8,250,819
|
5,927,101
|
||||||||
Allowance
for loan losses
|
(211,319
|
)
|
(190,278
|
)
|
||||||
8,039,500
|
5,736,823
|
|||||||||
Financial
assets designated at fair value through profit
or loss
|
8
|
213,153
|
53,116
|
|||||||
Premiums
and other policies receivable
|
9
|
85,495
|
61,279
|
|||||||
Accounts
receivable from re-insurers and co-insurers
|
9
|
116,141
|
35,181
|
|||||||
Property,
furniture and equipment, net
|
10
|
274,935
|
255,478
|
|||||||
Due
from customers on acceptances
|
35,901
|
45,129
|
||||||||
Assets
seized, net
|
11
|
19,615
|
29,427
|
|||||||
Intangible
assets and goodwill, net
|
12
|
227,272
|
215,647
|
|||||||
Other
assets
|
13
|
340,385
|
220,072
|
|||||||
Total
assets
|
17,705,898
|
12,881,529
|
Note
|
2007
|
2006
|
||||||||
US$(000)
|
US$(000)
|
|||||||||
Liabilities
and Equity
|
||||||||||
Deposits
and obligations:
|
14
|
|||||||||
Non-interest
bearing
|
2,926,308
|
1,989,564
|
||||||||
Interest
bearing
|
8,424,406
|
6,849,427
|
||||||||
11,350,714
|
8,838,991
|
|||||||||
Financial
liabilities designated at fair value through profit or
loss
|
8
|
50,561
|
-
|
|||||||
Due
to banks and correspondents
|
15
|
1,453,261
|
570,989
|
|||||||
Bankers’
acceptances outstanding
|
35,901
|
45,129
|
||||||||
Accounts
payable to re-insurers and co-insurers
|
9
|
21,914
|
25,134
|
|||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
16
|
815,527
|
628,221
|
|||||||
Borrowed
funds
|
15
|
870,404
|
370,612
|
|||||||
Bonds
and subordinated notes issued
|
17
|
702,298
|
512,572
|
|||||||
Other
liabilities
|
13
|
590,045
|
356,113
|
|||||||
Total
liabilities
|
15,890,625
|
11,347,761
|
||||||||
Equity
|
18
|
|||||||||
Capital
and reserves attributable to Credicorp’s equity holders:
|
||||||||||
Capital
stock
|
471,912
|
471,912
|
||||||||
Treasury
stock
|
(73,107
|
)
|
(73,107
|
)
|
||||||
Capital
surplus
|
140,693
|
140,693
|
||||||||
Reserves
|
587,218
|
479,902
|
||||||||
Other
reserves
|
179,550
|
147,409
|
||||||||
Retained
earnings
|
369,743
|
230,013
|
||||||||
1,676,009
|
1,396,822
|
|||||||||
Minority
interest
|
139,264
|
136,946
|
||||||||
Total
equity
|
1,815,273
|
1,533,768
|
||||||||
Total
liabilities and equity
|
17,705,898
|
12,881,529
|
Note
|
2007
|
2006
|
2005
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||||
Interest
and dividend income
|
22
|
1,065,974
|
782,002
|
612,432
|
|||||||||
Interest
expense
|
22
|
(432,000
|
)
|
(283,478
|
)
|
(173,159
|
)
|
||||||
Net
interest and dividend income
|
633,974
|
498,524
|
439,273
|
||||||||||
Provision
for loan losses
|
7(d)
|
|
(28,439
|
)
|
4,243
|
6,356
|
|||||||
Net
interest and dividend income after provision for loan
losses
|
605,535
|
502,767
|
445,629
|
||||||||||
Other
income
|
|||||||||||||
Banking
services commissions
|
23
|
324,761
|
243,778
|
206,163
|
|||||||||
Net
gain on foreign exchange transactions
|
61,778
|
41,638
|
29,286
|
||||||||||
Net
gain on sales of securities
|
41,359
|
27,281
|
8,965
|
||||||||||
Net
gain on financial assets and liabilities designated at fair value
through
profit and loss
|
8(b)
|
|
65,088
|
3,521
|
-
|
||||||||
Other
|
26
|
24,934
|
22,676
|
21,571
|
|||||||||
Total
other income
|
517,920
|
338,894
|
265,985
|
||||||||||
Insurance
premiums and claims
|
|||||||||||||
Net
premiums earned
|
24
|
297,272
|
251,261
|
218,955
|
|||||||||
Net
claims incurred for property and casualty insurance
contracts
|
25
|
(67,689
|
)
|
(46,587
|
)
|
(42,569
|
)
|
||||||
Net
claims incurred for life and health insurance contracts
|
25
|
(170,911
|
)
|
(139,935
|
)
|
(132,931
|
)
|
||||||
Total
premiums earned less claims
|
58,672
|
64,739
|
43,455
|
Note
|
2007
|
2006
|
2005
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||||
Other
expenses
|
|||||||||||||
Salaries
and employees benefits
|
(409,037
|
)
|
(303,332
|
)
|
(236,347
|
)
|
|||||||
Administrative
expenses
|
(206,966
|
)
|
(172,304
|
)
|
(138,294
|
)
|
|||||||
Depreciation
and amortization
|
10(a) and
12(a)
|
|
(51,013
|
)
|
(50,317
|
)
|
(38,728
|
)
|
|||||
Provision
for assets seized
|
11(b)
|
|
(3,057
|
)
|
(6,387
|
)
|
(16,959
|
)
|
|||||
Merger
expenses
|
-
|
(5,706
|
)
|
-
|
|||||||||
Other
|
26
|
(71,999
|
)
|
(52,718
|
)
|
(46,745
|
)
|
||||||
Total
other expenses
|
(742,072
|
)
|
(590,764
|
)
|
(477,073
|
)
|
|||||||
Income
before translation result and income tax
|
440,055
|
315,636
|
277,996
|
||||||||||
Translation
result
|
34,627
|
15,216
|
(9,597
|
)
|
|||||||||
Income
tax
|
19(b)
|
|
(102,287
|
)
|
(83,587
|
)
|
(73,546
|
)
|
|||||
Net
income
|
372,395
|
247,265
|
194,853
|
||||||||||
Attributable
to:
|
|||||||||||||
Equityholders
of Credicorp Ltd.
|
350,735
|
230,013
|
181,885
|
||||||||||
Minority
interest
|
21,660
|
17,252
|
12,968
|
||||||||||
372,395
|
247,265
|
194,853
|
|||||||||||
Basic
and diluted earnings per share for net income attributable to equity
holders of Credicorp Ltd. (in United States
dollars)
|
27
|
4.40
|
2.88
|
2.28
|
Attributable to the equity holders of Credicorp
|
|||||||||||||||||||||||||||||||
Number of
shares issued,
note 27
|
Capital
stock
|
Treasury
stock
|
Capital
surplus
|
Reserves
|
Other
reserves
|
Retained
earnings
|
Total
|
Minority
interest
|
Total
net equity
|
||||||||||||||||||||||
(In thousands of
units)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||
Balances
as of January 1st, 2005
|
94,382
|
471,912
|
(73,107
|
)
|
140,693
|
269,527
|
76,131
|
180,041
|
1,065,197
|
85,253
|
1,150,450
|
||||||||||||||||||||
Changes
in equity for 2005 -
|
|||||||||||||||||||||||||||||||
Net
unrealized gain from investments available-for-sale, note 6(c) and
18(c)
|
-
|
-
|
-
|
-
|
-
|
7,121
|
-
|
7,121
|
4,764
|
11,885
|
|||||||||||||||||||||
Transfer
of net realized gain from investments available-for-sale to the income
statement, net of realized loss, note 6(c) and 18(c)
|
-
|
-
|
-
|
-
|
-
|
(1,572
|
)
|
-
|
(1,572
|
)
|
(165
|
)
|
(1,737
|
)
|
|||||||||||||||||
Net
gain on cash flow hedge, note 18(c) and note 21(d)
|
-
|
-
|
-
|
-
|
-
|
1,622
|
-
|
1,622
|
-
|
1,622
|
|||||||||||||||||||||
Income
for the year recognized directly in equity
|
-
|
-
|
-
|
-
|
-
|
7,171
|
-
|
7,171
|
4,599
|
11,770
|
|||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
181,885
|
181,885
|
12,968
|
194,853
|
|||||||||||||||||||||
Total
recognized income for the period
|
-
|
-
|
-
|
-
|
-
|
7,171
|
181,885
|
189,056
|
17,567
|
206,623
|
|||||||||||||||||||||
Cash
dividends, note 18(d)
|
-
|
-
|
-
|
-
|
-
|
-
|
(63,810
|
)
|
(63,810
|
)
|
-
|
(63,810
|
)
|
||||||||||||||||||
Dividends
of subsidiaries and other
|
-
|
-
|
-
|
-
|
-
|
-
|
(3
|
)
|
(3
|
)
|
(1,305
|
)
|
(1,308
|
)
|
|||||||||||||||||
Balances
as of December 31, 2005 carried forward
|
94,382
|
471,912
|
(73,107
|
)
|
140,693
|
269,527
|
83,302
|
298,113
|
1,190,440
|
101,515
|
1,291,955
|
||||||||||||||||||||
Changes
in equity for 2006 -
|
|||||||||||||||||||||||||||||||
Net
unrealized gain from investments available-for-sale, note 6(c) and
18(c)
|
-
|
-
|
-
|
-
|
-
|
69,411
|
-
|
69,411
|
20,728
|
90,139
|
|||||||||||||||||||||
Transfer
of net realized gain from investments available-for-sale to the income
statement, net of realized loss, note 6(c) and 18(c)
|
-
|
-
|
-
|
-
|
-
|
(6,620
|
)
|
-
|
(6,620
|
)
|
(379
|
)
|
(6,999
|
)
|
|||||||||||||||||
Net
gain on cash flow hedge, note 18(c) and 21(d)
|
-
|
-
|
-
|
-
|
-
|
1,316
|
-
|
1,316
|
-
|
1,316
|
|||||||||||||||||||||
Income
for the year recognized directly in equity
|
-
|
-
|
-
|
-
|
-
|
64,107
|
-
|
64,107
|
20,349
|
84,456
|
|||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
230,013
|
230,013
|
17,252
|
247,265
|
|||||||||||||||||||||
Total
recognized income for the period
|
-
|
-
|
-
|
-
|
-
|
64,107
|
230,013
|
294,120
|
37,601
|
331,721
|
|||||||||||||||||||||
Transfer
of retained earnings to reserves, note 18(c)
|
-
|
-
|
-
|
-
|
210,375
|
-
|
(210,375
|
)
|
-
|
-
|
-
|
Attributable to the equity holders of Credicorp
|
|||||||||||||||||||||||||||||||
Number of
shares issued,
note 27
|
Capital
stock
|
Treasury
stock
|
Capital
surplus
|
Reserves
|
Other
reserves
|
Retained
earnings
|
Total
|
Minority
interest
|
Total
net equity
|
||||||||||||||||||||||
(In thousands of units)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||
Cash dividends, note 18(d)
|
-
|
-
|
-
|
-
|
-
|
-
|
(87,738
|
)
|
(87,738
|
)
|
-
|
(87,738
|
)
|
||||||||||||||||||
Dividends of subsidiaries and other
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,170
|
)
|
(2,170
|
)
|
|||||||||||||||||||
Balances as
of December 31, 2006 carried forward
|
94,382
|
471,912
|
(73,107
|
)
|
140,693
|
479,902
|
147,409
|
230,013
|
1,396,822
|
136,946
|
1,533,768
|
||||||||||||||||||||
Changes
in equity for 2007-
|
|||||||||||||||||||||||||||||||
Net
unrealized gain from investments available-for-sale, note 6(c) and
18(c)
|
-
|
-
|
-
|
-
|
-
|
85,129
|
-
|
85,129
|
(426
|
)
|
84,703
|
||||||||||||||||||||
Transfer
of net realized gain from investments available-for-sale to the income
statement, net of realized loss and impairment, note 6(c) and
18(c)
|
-
|
-
|
-
|
-
|
-
|
(12,617
|
)
|
-
|
(12,617
|
)
|
-
|
(12,617
|
)
|
||||||||||||||||||
Net
loss on cash flow hedge, note 18(c) and 21(d)
|
-
|
-
|
-
|
-
|
-
|
(40,371
|
)
|
-
|
(40,371
|
)
|
-
|
(40,371
|
)
|
||||||||||||||||||
Income
for the year recognized directly in equity
|
-
|
-
|
-
|
-
|
-
|
32,141
|
-
|
32,141
|
(426
|
)
|
31,715
|
||||||||||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
350,735
|
350,735
|
21,660
|
372,395
|
|||||||||||||||||||||
Total
recognized income for the period
|
-
|
-
|
-
|
-
|
-
|
32,141
|
350,735
|
382,876
|
21,234
|
404,110
|
|||||||||||||||||||||
Transfers
of retained earnings to reserves, note 18(c)
|
-
|
-
|
-
|
-
|
107,316
|
-
|
(107,316
|
)
|
-
|
-
|
-
|
||||||||||||||||||||
Cash
dividends, note 18(d)
|
-
|
-
|
-
|
-
|
-
|
-
|
(103,690
|
)
|
(103,690
|
)
|
-
|
(103,690
|
)
|
||||||||||||||||||
Dividends
of subsidiaries and other
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
1
|
(18,916
|
)
|
(18,915
|
)
|
|||||||||||||||||||
Balances
as of December 31, 2007
|
94,382
|
471,912
|
(73,107
|
)
|
140,693
|
587,218
|
179,550
|
369,743
|
1,676,009
|
139,264
|
1,815,273
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Cash
flows from operating activities
|
||||||||||
Net
income
|
372,395
|
247,265
|
194,853
|
|||||||
Add
(deduct)
|
||||||||||
Provision
(recoveries) for loan losses
|
28,439
|
(4,243
|
)
|
(6,356
|
)
|
|||||
Depreciation
and amortization
|
51,013
|
50,317
|
38,728
|
|||||||
Provision
for assets seized
|
3,057
|
6,387
|
16,959
|
|||||||
Provision
for sundry risks, note 26
|
8,096
|
6,461
|
5,567
|
|||||||
Deferred
income tax, note 19(b)
|
(14,921
|
)
|
(4,786
|
)
|
(11,502
|
)
|
||||
Net
gain on sales of securities available-for-sale
|
(41,359
|
)
|
(27,281
|
)
|
(8,965
|
)
|
||||
Net
gain on financial assets and liabilities designated at fair value
through
profit and loss
|
(65,088
|
)
|
(3,521
|
)
|
-
|
|||||
Gain
on sales of property, furniture and equipment
|
(42
|
)
|
(169
|
)
|
(1,875
|
)
|
||||
Translation
result
|
(34,627
|
)
|
(15,216
|
)
|
9,597
|
|||||
Purchase
(sale) of trading securities, net
|
(5,859
|
)
|
15,649
|
22,843
|
||||||
Purchase
of loan portfolio, note 2(b)
|
-
|
-
|
(353,769
|
)
|
||||||
Changes
in assets and liabilities:
|
||||||||||
(Increase)
decrease in loans, net
|
(2,172,418
|
)
|
(871,970
|
)
|
90,521
|
|||||
Increase
in other assets
|
(404,175
|
)
|
(100,570
|
)
|
(15,062
|
)
|
||||
Increase
in deposits and obligations, net
|
2,269,568
|
1,632,960
|
648,648
|
|||||||
Increase
(decrease) in due to banks and correspondents, net
|
875,447
|
(455,381
|
)
|
540,824
|
||||||
Increase
in other liabilities, net
|
470,963
|
114,717
|
149,920
|
|||||||
Net
cash provided by operating activities
|
1,340,489
|
590,619
|
1,320,931
|
|||||||
Cash
flows from investing activities
|
||||||||||
Acquisition
of subsidiaries net of cash received, note
2(a)
|
-
|
(140,085
|
)
|
-
|
||||||
Disposal
of subsidiaries, net of cash disposed, note 2(c)
|
-
|
-
|
17,977
|
|||||||
Net
purchase of investments available-for-sale
|
(1,541,621
|
)
|
(433,702
|
)
|
(712,879
|
)
|
||||
Purchase
of property, furniture and equipment
|
(53,901
|
)
|
(43,973
|
)
|
(48,769
|
)
|
||||
Sales
of property, furniture and equipment
|
951
|
7,546
|
19,448
|
|||||||
Net
cash used in investing activities
|
(1,594,571
|
)
|
(610,214
|
)
|
(724,223
|
)
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Cash
flows from financing activities
|
||||||||||
Issuance
of bonds and subordinated debt
|
256,014
|
167,247
|
74,985
|
|||||||
Redemption
of bonds and subordinated debt
|
(75,728
|
)
|
(91,925
|
)
|
(57,469
|
)
|
||||
Increase
in borrowed funds
|
499,792
|
90,612
|
348,500
|
|||||||
Payments
of borrowed funds
|
-
|
-
|
(68,500
|
)
|
||||||
Cash
dividends
|
(103,690
|
)
|
(87,738
|
)
|
(63,810
|
)
|
||||
Net
cash provided by (used in) financing activities
|
576,388
|
78,196
|
233,706
|
|||||||
Translation
gain (loss) on cash and cash equivalents
|
18,029
|
14,114
|
(15,060
|
)
|
||||||
Net
increase in cash and cash equivalents
|
340,335
|
72,715
|
815,354
|
|||||||
Cash
and cash equivalents at the beginning of the year
|
2,733,530
|
2,660,815
|
1,845,461
|
|||||||
Cash
and cash equivalents at the end of the year
|
3,073,865
|
2,733,530
|
2,660,815
|
|||||||
Supplementary
cash flows information:
|
||||||||||
Cash
paid during the year for -
|
||||||||||
Interest
|
415,157
|
265,838
|
171,495
|
|||||||
Income
tax
|
86,754
|
96,284
|
47,760
|
|||||||
Cash
received during the year for -
|
||||||||||
Interest
|
1,106,972
|
810,266
|
628,508
|
1. |
Operations
|
2. |
Business
developments
|
(a) |
Acquisition
of AFP Unión Vida S.A.-
|
Book value of the
entity acquired
|
Fair value
recognition
|
Fair value of the
entity acquired
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Assets
-
|
||||||||||
Cash
and cash equivalents
|
1,428
|
-
|
1,428
|
|||||||
Restricted
mutual fund
|
32,265
|
-
|
32,265
|
|||||||
Client
relationships
|
-
|
88,378
|
88,378
|
|||||||
Other
Intangibles
|
3,424
|
9,603
|
13,027
|
|||||||
Property,
furniture and equipment
|
2,060
|
-
|
2,060
|
|||||||
Goodwill
|
-
|
49,047
|
49,047
|
|||||||
Other
assets
|
5,605
|
-
|
5,605
|
|||||||
Liabilities
-
|
||||||||||
Trade
accounts payable
|
4,688
|
-
|
4,688
|
|||||||
Other
accounts payable
|
5,352
|
-
|
5,352
|
|||||||
Other
liabilities
|
7,433
|
32,824
|
40,257
|
|||||||
Net
acquired assets
|
27,309
|
114,204
|
141,513
|
(*)
|
(*)
|
Cash
paid for the acquisition and related direct
cost
|
(b) |
Acquisition
of the loan portfolio of Bank Boston N.A. Peru Subsidiary
-
|
(c) |
Sale
of Banco Tequendama S.A. -
|
3. |
Significant
accounting policies
|
(a) |
Basis
of presentation and use of estimates
-
|
- |
IFRS
7, “Financial instruments: Disclosures”, and the complementary amendment
to IAS 1, “Presentation of financial statements - Capital disclosures”,
introduces new disclosures relating to financial instruments and
does not
have any impact on the classification and valuation of the group’s
financial instruments, or any effect on the net income and the equity
of
Credicorp and its Subsidiaries. The significant new disclosures required
by IFRS 7 have been included in notes 30 and 31; the new disclosures
of
IAS 1 have been included in note
31.
|
- |
IFRIC
8, “Scope of IFRS 2”, requires IFRS 2 to be applied to any arrangements in
which the entity cannot identify specifically some or all of the
goods
received, in particular where equity instruments are issued for
consideration which appears to be less than fair value. Due to the
fact
that Credicorp does not have this type of transactions, this standard
does
not have any impact on the Group’s financial statements.
|
- |
IFRIC
9 “Reassessment of Embedded Derivatives”, states that the date to assess
the existence of an embedded derivative is the date that an entity
first
becomes a party to the contract, with reassessment only if there
is a
change to the contract that significantly modifies the cash flows.
As the
Group has designated its embedded derivatives as “Financial assets and
liabilities at fair value through profit and lost”, the interpretation had
no impact on the financial position or performance of the
Group.
|
- |
IFRIC
10, “Interim financial reporting and impairment”, prohibits the impairment
losses recognized in an interim period for goodwill and investments
in
equity instruments and in financial assets carried at cost to be
reversed
at a subsequent interim or annual balance sheet date. This standard
does
not have any impact on the Group’s financial
statements.
|
(b) |
Consolidation
-
|
Entity
|
Percentage of participation
|
Assets
|
Liabilities
|
Equity
|
Net
income (loss)
|
||||||||||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
||||||||||||||||||||||
% | % |
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||
Banco
de Crédito del Perú and Subsidiaries (i)
|
97.33
|
97.24
|
15,171,338
|
10,802,737
|
14,038,774
|
9,838,881
|
1,132,564
|
963,856
|
331,652
|
247,756
|
|||||||||||||||||||||
Atlantic
Security Holding Corporation and Subsidiaries (ii)
|
100.00
|
100.00
|
1,738,697
|
1,320,535
|
1,401,237
|
1,200,170
|
337,460
|
120,365
|
20,537
|
15,402
|
|||||||||||||||||||||
El
Pacífico Peruano-Suiza Compañía de Seguros y Reaseguros and Subsidiaries
(iii)
|
75.74
|
75.72
|
1,197,943
|
1,002,358
|
932,765
|
712,430
|
265,178
|
289,928
|
21,979
|
59,087
|
|||||||||||||||||||||
Grupo
Crédito S.A. and Subsidiaries (iv)
|
100.00
|
100.00
|
389,577
|
314,540
|
125,089
|
115,702
|
264,488
|
198,838
|
7,662
|
(12,380
|
)
|
||||||||||||||||||||
CCR
Inc. (v)
|
99.99
|
99.99
|
879,997
|
382,930
|
917,655
|
380,000
|
(37,658
|
)
|
2,930
|
(4
|
)
|
121
|
|||||||||||||||||||
Credicorp
Securities Inc. (vi)
|
99.99
|
99.99
|
2,047
|
1,503
|
215
|
18
|
1,832
|
1,485
|
347
|
487
|
(i) |
Banco
de Crédito (BCP) is a universal bank, incorporated in Peru in 1889,
authorized to engage in banking activities by the Superintendence
of
Banking, Insurance and AFP (SBS), the Peruvian banking, insurance
and AFP
authority. During 2007 and 2006, Credicorp acquired equivalent to
0.09
percent and 0.25 percent of BCP shares, respectively, owned by minority
interest. See (iii) below.
|
(ii) |
Atlantic
Security Holding Corporation (ASHC) is incorporated in the Cayman
Islands.
Its main activity is to invest in the capital stock of companies.
Its most
significant subsidiary is Atlantic Security Bank (ASB). ASB is also
incorporated in the Cayman Islands and began operations on December
1981,
carrying out its activities through branches and offices in Grand
Cayman
and the Republic of Panama, its main activity is private and institutional
banking and trustee
administration.
|
(iii) |
El
Pacífico Peruano-Suiza Compañía de Seguros y Reaseguros (PPS) is a
Peruvian corporation, whose main activity is the issuance and
administration of insurance for property and casualty and related
activities, and also provides insurance for life, health and personal
accidents. Its main subsidiaries are El Pacífico Vida Compañía de Seguros
y Reaseguros S.A. and Pacífico S.A. Entidad Prestadora de Salud (EPS), in
which maintain a share of 61.99 percent and 100.00 percent, respectively.
On November 2006, PPS sold to Credicorp 1.02 percent of BCP shares
that
maintained to that date, generating a goodwill for the purchase of
the
corresponding percentage of minority interest (0.25 percent) amounted
to
approximately US$7.2 million, note 12(b).
|
(iv) |
Grupo
Crédito S.A. is a company incorporated in Peru on February 1987, whose
main activity is to invest in listed and not listed securities in
Peru.
Since 2005, Group Crédito incorporated Prima AFP, a new subsidiary engaged
in fund management activities. On August, 2006, Prima AFP acquired
99.97
percent of the representative capital shares of AFP Unión Vida S.A., which
was merged on December 2006, note 2(a). As of December 31, 2007,
Prima AFP
total assets amount approximately US$246.4 million, liabilities for
US$116.8 million and a net gain of US$3.0 million (US$233.9 million,
US$115.4 million and US$20.7 million, respectively, as of December
31,
2006). Additionally, the Company owns 100.00 percent of the shares
of
Soluciones en Procesamiento S.A. (Servicorp), an entity specialized
in
collection services.
|
(v) |
CCR
Inc., is a special purposes entity incorporated in Bahamas in 2001,
whose
main activity is to manage the loans granted to BCP from foreign
financial
entities, note 15(b). These loans are collateralized by transactions
realized by the Bank. As of December 31, 2007, the negative equity
is
generated by the unrealized losses of the cash flow hedge derivatives,
as
it is explained in note 18(c) y
21(d).
|
(vi) |
Credicorp
Securities Inc., an entity incorporated in the United States of America
on
January 2003, whose main activity is to be engaged in brokerage activities
in the securities market, directed principally to retail customers
in
Latin America.
|
(c) |
Foreign
currency translation -
|
- |
Monetary
assets and liabilities for each balance sheet presented are translated
at
the free market exchange rate at the date of the consolidated balance
sheet.
|
- |
Non-monetary
accounts for each balance sheet presented are translated at the free
market exchange rate at the date of the
transactions.
|
- |
Income
and expenses, except for those related to non-monetary assets which
are
translated at the free market exchange rate at the date of the
transaction, are translated monthly at the average exchange
rate.
|
(d) |
Income
and expense recognition from banking activities
-
|
(e) |
Recognition
of income and expenses of insurance activities
-
|
(f) |
Financial
Instruments: Initial recognition and subsequent measurement
-
|
(i) |
Financial
assets and financial liabilities at fair value through profit or
loss:
|
- |
The
designation eliminates or significantly reduces the inconsistent
treatment
that would otherwise arise from measuring the assets or liabilities
or
recognizing gains or losses on them on a different basis;
or
|
- |
The
assets and liabilities are part of a group of financial assets, financial
liabilities or both which are managed and their performance evaluated
on a
fair value basis, in accordance with a documented risk management
or
investment strategy; or
|
- |
The
financial instrument contains an embedded derivative, unless the
embedded
derivative does not significantly modify the cash flows or it is
clear,
with little or no analysis, that it would not be separately
recorded.
|
(ii) |
Loans
and receivables:
|
(iii) |
Available-for-sale
financial investments:
|
(iv) |
Other
financial liabilities:
|
(g) |
Derecognition
of financial assets and financial liabilities -
|
(h) |
Offsetting
financial instruments -
|
(i) |
Impairment
of financial assets -
|
(i) |
Loans
and receivables:
|
(ii) |
Available-for-sale
financial investments:
|
(iii) |
Renegotiated
loans:
|
(j) |
Leases
-
|
(k) |
Property,
furniture and equipment -
|
Years
|
||||
Buildings
and other construction
|
33
|
|||
Installations
|
10
|
|||
Furniture
and fixtures
|
10
|
|||
Computer
hardware
|
4
|
|||
Vehicles
and equipment
|
5
|
(l) |
Assets
seized -
|
(m) |
Intangible
assets -
|
(n) |
Goodwill
-
|
(o) |
Impairment
of non-financial assets -
|
(p) |
Due
from customers on acceptances -
|
(q) |
Financial
guarantees -
|
(r) |
Defined
contribution pension plan -
|
(s) |
Provisions
-
|
(t) |
Contingencies
-
|
(u) |
Income
tax and workers’ profit sharing -
|
(v) |
Earnings
per share -
|
(w) |
Stock
appreciation rights -
|
(x) |
Derivative
financial instruments -
|
(y) |
Segment
reporting -
|
(z) |
Fiduciary
activities, management of investment and pension funds
-
|
(aa) |
Sale
and repurchase agreements -
|
(ab) |
Operations
with reinsurers and coinsurers -
|
(ac) |
Cash
and cash equivalents -
|
(ad) |
Reclassifications
-
|
(i) |
As
of December 31, 2006, the “Financial assets designated at fair value
through profit or loss” were shown as part of the caption “Other assets”
on the consolidated balance sheet. As of December 31, 2007, these
concepts
are shown separately for a better presentation in accordance with
the
accounting policies in force.
|
(ii) |
As
of December 31, 2006, the “Financial liabilities designated at fair value
through profit or loss” were shown as part of the caption “Other
liabilities” on the consolidated balance sheet. As of December 31, 2007,
these concepts are shown separately for a better presentation in
accordance with the accounting policies in
force.
|
(i) |
As
of December 31, 2006, the “Net gain on financial assets and liabilities
designated at fair value through profit and loss” amounted to US$3.5
million was shown as part of the caption “Other income”; as of December
31, 2007, this concept is shown separately in the consolidated Income
statements.
|
(ii) |
As
of December 31, 2006, the “Interest and dividend Income” and the “Interest
expense” were shown in detail on the face of consolidated Income
statement. As of December 31, 2007, the details of these concepts
are
shown as part of the note 22 of the consolidated Income
statement.
|
(ae) |
Recently
issued International Financial Reporting Standards but not yet effective
-
|
- |
IFRS
8, “Operating Segments”, effective for accounting periods beginning on or
after January 1, 2009.
|
- |
IAS
23 (Amendment), “Borrowing costs”, effective for annual periods beginning
on or after January 1, 2009.
|
- |
IFRIC
11, “IFRS 2 - Group Treasury Share Transactions”, effective for annual
periods beginning on or after March 1,
2007.
|
- |
IFRIC
12, “Service concession arrangements”, effective for annual periods
beginning on or after January 1,
2008.
|
- |
IFRIC
13, “Customer loyalty programmes”, effective for annual periods beginning
on or after July 1, 2008.
|
- |
IFRS
3 (revised) “Business Combination and Consolidation” and IAS 27 (revised)
“Separated Financial Statements Consolidation”, effective modifications
for periods on or after July 1, 2009. This Standard establishes that
its
application is not retroactive, therefore, it will not have effect
on the
2007 financial statements for the
Group.
|
- |
IFRS
2, “Share-based payments - Vesting conditions and cancellations”,
effective for financial years beginning on or after January 1, 2009.
The
Standard restricts the definition of “vesting condition” to a condition
that includes an explicit or implicit requirement to provide
services.
|
- |
IAS
1 (revised) “Presentation of financial statements”, effective for
financial years beginning on or after January 1, 2009. The Standard
separates owner and non owner-changes in equity. In addition, the
Standard
introduces the statement of comprehensive
income.
|
- |
IAS
32 (Amendment) and IAS 1 “Puttable Financial Instruments” (Amendment),
effective for annual periods on or after January 1,
2009.
|
4. |
Cash
and due from banks
|
(a) |
This
item is made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Cash
and clearing
|
548,298
|
470,584
|
|||||
Deposits
in Peruvian Central Bank - BCRP
|
1,798,581
|
1,405,853
|
|||||
Deposits
in banks
|
720,992
|
853,203
|
|||||
3,067,871
|
2,729,640
|
||||||
Accrued
interest
|
5,994
|
3,890
|
|||||
Total
|
3,073,865
|
2,733,530
|
(b) |
As
of December 31, 2007 and 2006, cash and due from banks balances include
approximately US$1,191.2 and US$1,675.1 million, respectively, mainly
from
Banco de Crédito del Perú (BCP), which represent the legal reserve that
the Peruvian banks must maintain for its obligations with the public.
These funds are deposited in the vaults of the Bank and in the BCRP,
and
are within the limits established by prevailing legislation. In addition,
as of December 31, 2007 the cash and due from banks caption includes
US$1,000 million, corresponds to overnight operations deposited in
the
BCRP, this operation earned interest at a an effective rate of 4.45
percent and had a 2 days maturity (approximately US$70.0 million
and
S/120.0 million, equivalent to US$37.5 million, interest at an annual
nominal rate of 4.97 percent and an effective rate of 3.75 percent,
respectively, and 4 days maturity as of December 31,
2006).
|
5. |
Trading
securities
|
(a) |
This
item is made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Shares
-
|
|||||||
Listed
equity securities
|
24,947
|
34,692
|
|||||
Bonds
and similar instruments -
|
|||||||
Sovereign
bonds - Republic of Peru (b)
|
18,806
|
-
|
|||||
Peruvian
treasury bonds (b)
|
2,119
|
-
|
|||||
Corporate
and leasing bonds
|
1,711
|
2,260
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Bank
certificates
|
1,400
|
1,726
|
|||||
Other
|
1,476
|
6,456
|
|||||
25,512
|
10,442
|
||||||
50,459
|
45,134
|
||||||
Accrued
interest
|
536
|
2
|
|||||
Total
|
50,995
|
45,136
|
(b) |
The
Sovereign bonds are issued in Peruvian currency by the Peruvian Goverment.
As of December 31, 2007, these bonds accrue interest at annual rates
that
range between 5.96 and 6.44 percent and have maturities between February
2009 and August 2026.
|
6. |
Investments
available-for-sale
|
(a) |
This
item is made up as follows:
|
2007
|
2006
|
||||||||||||||||||||||||
Unrealized gross amount
|
Unrealized gross amount
|
||||||||||||||||||||||||
Amortized
cost
|
Gains
|
Losses (b)
|
Estimated
market value
|
Amortized
cost
|
Gains
|
Losses (b)
|
Estimated
market value
|
||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||
Fixed
maturity -
|
|||||||||||||||||||||||||
BCRP
certificates of deposit (d)
|
2,410,062
|
224
|
(3,281
|
)
|
2,407,005
|
1,276,503
|
1,143
|
(33
|
)
|
1,277,613
|
|||||||||||||||
Corporate,
leasing and subordinated bonds (e)
|
1,052,039
|
17,625
|
(9,472
|
)
|
1,060,192
|
845,644
|
15,769
|
(3,179
|
)
|
858,234
|
|||||||||||||||
Government
treasury bonds (f)
|
670,717
|
59,316
|
(403
|
)
|
729,630
|
476,036
|
59,564
|
(1,620
|
)
|
533,980
|
|||||||||||||||
Participation
in mutual funds
|
186,311
|
12,209
|
(113
|
)
|
198,407
|
86,422
|
9,920
|
(104
|
)
|
96,238
|
|||||||||||||||
Central
Banks of Bolivia certificates of deposit
|
121,706
|
38
|
(96
|
)
|
121,648
|
27,833
|
189
|
(1
|
)
|
28,021
|
|||||||||||||||
US
Government - Sponsored Enterprises (f)
|
86,337
|
2,337
|
(427
|
)
|
88,247
|
153,867
|
1,661
|
(1,299
|
)
|
154,229
|
|||||||||||||||
Restricted
mutual funds (g)
|
47,347
|
18,255
|
-
|
65,602
|
43,152
|
6,085
|
-
|
49,237
|
|||||||||||||||||
Participation
in RAL’s funds (h)
|
56,641
|
-
|
-
|
56,641
|
51,204
|
-
|
-
|
51,204
|
|||||||||||||||||
Negotiable
certificates of deposit
|
53,236
|
1,850
|
(1
|
)
|
55,085
|
47,225
|
1,104
|
-
|
48,329
|
||||||||||||||||
Bonds
from international financial institutions (i)
|
45,136
|
143
|
-
|
45,279
|
64,578
|
89
|
(24
|
)
|
64,643
|
||||||||||||||||
Commercial
papers
|
15,585
|
27
|
(9
|
)
|
15,603
|
15,712
|
35
|
(6
|
)
|
15,741
|
|||||||||||||||
Other
|
21,860
|
1,348
|
(21
|
)
|
23,187
|
26,930
|
2,015
|
(150
|
)
|
28,795
|
|||||||||||||||
4,766,977
|
113,372
|
(13,823
|
)
|
4,866,526
|
3,115,106
|
97,574
|
(6,416
|
)
|
3,206,264
|
||||||||||||||||
Shares
-
|
|||||||||||||||||||||||||
Listed
securities (j)
|
107,332
|
167,578
|
(1,701
|
)
|
273,209
|
78,649
|
112,025
|
(235
|
)
|
190,439
|
|||||||||||||||
Non-listed
securities
|
19,568
|
28,343
|
(3
|
)
|
47,908
|
17,837
|
7,964
|
(57
|
)
|
25,744
|
|||||||||||||||
126,900
|
195,921
|
(1,704
|
)
|
321,117
|
96,486
|
119,989
|
(292
|
)
|
216,183
|
||||||||||||||||
4,893,877
|
309,293
|
(15,527
|
)
|
5,187,643
|
3,211,592
|
217,563
|
(6,708
|
)
|
3,422,447
|
||||||||||||||||
Accrued
interest
|
40,998
|
28,264
|
|||||||||||||||||||||||
Total
|
5,228,641
|
3,450,711
|
(b) |
The
Group has determined that the unrealized losses as of December 31,
2007
and 2006, arise from the variation of the interest rates and not
from
changes in the risk classification of the investments. Moreover,
the Group
has decided and has the capacity to maintain these investments until
the
recovery of their fair value which can occur at their maturity; therefore,
the Group has concluded that no impairment exists on the value of
these
investments.
|
2007
|
|||||||||||||||||||
Available-for-sale
investments
|
Up
to 12 months
|
More
than 1 year
|
Total
|
||||||||||||||||
Estimate
fair
value
|
Gross
unrealized
loss
|
Estimate
fair
value
|
Gross
unrealized
loss
|
Estimate
fair
value
|
Gross
unrealized
loss
|
||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||
Fixed
maturity
|
2,044,311
|
9,513
|
140,237
|
4,310
|
2,184,548
|
13,823
|
|||||||||||||
Shares
|
16,670
|
1,704
|
-
|
-
|
16,670
|
1,704
|
|||||||||||||
Total
|
2,060,981
|
11,217
|
140,237
|
4,310
|
2,201,218
|
15,527
|
2006
|
|||||||||||||||||||
Available-for-sale
investments
|
Up
to 12 months
|
More
than 1 year
|
Total
|
||||||||||||||||
Estimate
fair
value
|
Gross
unrealized
loss
|
Estimate
fair
value
|
Gross
unrealized
loss
|
Estimate
fair
value
|
Gross
unrealized
loss
|
||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||
Fixed
maturity
|
571,882
|
3,686
|
214,692
|
2,730
|
786,574
|
6,416
|
|||||||||||||
Shares
|
1,957
|
29
|
853
|
263
|
2,810
|
292
|
|||||||||||||
Total
|
573,839
|
3,715
|
215,545
|
2,993
|
789,384
|
6,708
|
(c) |
The
movement of “Other reserves” in equity includes mainly the net change in
the realized and unrealized gains and losses, net of deferred taxes
and
minority interest, and the provision for impairment. This caption
is as
follows:
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Net
unrealized gains, net of taxes and minority interest, note
18(c)
|
85,129
|
69,411
|
7,121
|
|||||||
Net
realized gains, net of taxes and minority interest, note
18(c)
|
17,634
|
6,620
|
1,572
|
|||||||
Impairment
on investments, note 18(c)
|
(5,017
|
)
|
-
|
-
|
(d) |
BCRP
certificates of deposit are discounted Peruvian currency instruments
with
maturities due within one year. These certificates have been acquired
in
public auctions. Annual interest rates in Peruvian currency range
between
4.93 and 6.01 percent as of December 31, 2007 (between 4.53 and 5.78
annual percent as of December 31, 2006) with maturities between January
2008 and April 2010 (between January 2007 and December 2009, of December
31, 2006). As of December 31, 2007 and 2006, the Group has entered
into
BCRP - Repo transactions in Peruvian currency with its clients using
these
securities, for approximately US$242.8 and US$167.7 million, respectively.
As of December 31, 2007, these operations earn an effective annual
interest rate range between 5.04 and 6.00 percent and with maturities
between January 2008 and December 2009 (annual interest rate range
between
4.08 and 5.26 percent and with maturities between January 2007 and
June
2007 as of December 31, 2006).
|
(e) |
As
of December 31, 2007, comprise corporate bonds by US$1,053.7 million,
leasing bonds by US$4.3 million and subordinated bonds by US$2.2
million
(US$849.9, US$3.9 and US$4.4 million, respectively, as of December
31,
2006), with maturities between January 2008 and November 2066 (between
January 2007 and May 2049 as of December 31, 2006). These bonds accrue
interests at annual effective rates that range between 2.79 and 6.87
percent for the bonds denominated in Peruvian currency (between 3.36
and
7.71 percent as of December 31, 2006), and between 3.13 and 15.63
percent
for the bonds denominated in U.S. Dollars (between 2.88 and 11.00
percent
as of December 31, 2006).
|
(f) |
Includes
principally debt instruments for US$88.2, US$616.1, US$85.4 and US$11.1
million issued by US Government - Sponsored Enterprises, the Peruvian
Government, the Colombian Government and the Government of El Salvador,
respectively, as of December 31, 2007 (US$154.2, US$425.1, US$72.0
and
US$14.0 million issued by US Government - Sponsored Enterprises,
the
Peruvian Government, the Colombian Government and the Government
of El
Salvador, respectively, as of December 31, 2006). Their maturities
are
between January 2008 and August 2046 (between February 2007 and August
2038 as of December 31, 2006) at annual interest rates that range
between
3.28 and 9.13 percent (between 2.38 and 11.75 percent as of December
31,
2006).
|
(g) |
The
restricted mutual funds comprise participation quotas on the pension
funds
managed by the Group as required by the legal standards of Peru and
they
have a restricted disposal. The profitability obtained is the same
as the
obtained for the funds managed. The amount as of December 31, 2006,
approximately US$32.3 million comes from the purchase of AFP Unión Vida
S.A. as mentioned in note
2(a).
|
(h) |
The
participation quotas in the Fund “Requirement of Cash Assets” (RAL for its
Spanish denomination), stated in Bolivian pesos, comprises investments
made by the Group in the Central Bank of Bolivia as collateral for
the
deposits maintained with the public. Such fund has restrictions for
its
use and it is required for all the banks established in Bolivia.
The fund
accrues interest at an average annual rate of 5.42 and 5.61 as of
December
31, 2007 and 2006, respectively.
|
(i) |
Comprise
mainly of US$32.8 and US$10.0 million of debt instruments issued
by
Corporación Andina de Fomento - CAF and by The World Bank, respectively
(mainly of US$55.1 and US$9.5 million issued by Corporación Andina de
Fomento - CAF and by The World Bank, respectively, as of December
31,
2006). Such bonds have maturities between April 2008 and November
2011
(between January 2007 and July 2009 as of December 31, 2006). Annual
interest rates are between 3.81 and 6.31 percent (between 5.32 and
5.92
percent as of December 31, 2006).
|
(j) |
As
December 31, 2007, the unrealized gains on trade shares comes principally
from the shares of Banco de Crédito e Inversiones de Chile - BCI Chile,
Inversiones Centenario S.A. and Alicorp S.A.A., which amounted to
US$61.3,
US$31.2 and US$29.0, respectively (amounted to US$60.2, US$6.2 and
US$26.9
million, respectively, as of December 31,
2006).
|
(k) |
The
amortized cost and market value of the investments available-for-sale
classified by maturity are as follows:
|
2007
|
2006
|
||||||||||||
Amortized
cost
|
Market
value
|
Amortized
cost
|
Market
value
|
||||||||||
US$(000)
|
|
US$(000)
|
|
US$(000)
|
|
US$(000)
|
|||||||
Up
to 3 months
|
798,053
|
828,839
|
766,650
|
781,657
|
|||||||||
From
3 months to 1 year
|
1,961,129
|
1,959,497
|
866,811
|
868,452
|
|||||||||
From
1 to 3 years
|
922,822
|
925,330
|
458,796
|
460,967
|
|||||||||
From
3 to 5 years
|
170,413
|
175,532
|
222,215
|
228,805
|
|||||||||
Over
5 years
|
914,560
|
977,328
|
800,634
|
866,383
|
|||||||||
Without
maturity (shares)
|
126,900
|
321,117
|
96,486
|
216,183
|
|||||||||
Total
|
4,893,877
|
5,187,643
|
3,211,592
|
3,422,447
|
7. |
Loans,
net
|
(a) |
This
caption is made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Direct
loans -
|
|||||||
Loans
|
5,842,934
|
4,224,102
|
|||||
Leasing
receivables
|
1,118,301
|
675,804
|
|||||
Credit
card receivables
|
677,182
|
438,628
|
|||||
Discount
notes
|
325,047
|
256,534
|
|||||
Advances
and overdrafts
|
127,486
|
84,262
|
|||||
Factoring
receivables
|
109,928
|
89,171
|
|||||
Refinanced
and restructured loans
|
88,451
|
126,006
|
|||||
Past
due and under legal collection loans
|
61,488
|
76,770
|
|||||
8,350,817
|
5,971,277
|
||||||
Add
(less) -
|
|||||||
Accrued
interest
|
66,974
|
49,740
|
|||||
Unearned
interest
|
(166,972
|
)
|
(93,916
|
)
|
|||
Allowance
for loan losses (d)
|
(211,319
|
)
|
(190,278
|
)
|
|||
Total
direct loans, net
|
8,039,500
|
5,736,823
|
|||||
Indirect
loans, note 21(a)
|
1,564,525
|
1,455,376
|
(b) |
Loans
by class as of December 31, 2007 and 2006, are as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Commercial
loans
|
6,222,178
|
4,465,837
|
|||||
Residential
mortgage loans
|
1,253,835
|
981,273
|
|||||
Consumer
loans
|
874,804
|
524,167
|
|||||
Total
|
8,350,817
|
5,971,277
|
(c) |
Interest
rates on loans are set considering the rates prevailing in the markets
where the Group’s subsidiaries
operate.
|
(d) |
The
movement in the allowance for loan losses (direct and indirect credits)
is
shown below:
|
2007
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
US$(000)
|
|
US$(000)
|
|
US$(000)
|
|
US$(000)
|
|||||||
Beginning
balances
|
183,374
|
9,253
|
17,959
|
210,586
|
|||||||||
Provision
(recoveries)
|
(5,591
|
)
|
4,884
|
29,146
|
28,439
|
||||||||
Recoveries
of written-off loans
|
26,016
|
2,587
|
5,481
|
34,084
|
|||||||||
Loan
portfolio written-off
|
(22,079
|
)
|
(2,395
|
)
|
(22,792
|
)
|
(47,266
|
)
|
|||||
Translation
result
|
2,864
|
125
|
868
|
3,857
|
|||||||||
Ending
balances (*)
|
184,584
|
14,454
|
30,662
|
229,700
|
2006
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
US$(000)
|
|
US$(000)
|
|
US$(000)
|
|
US$(000)
|
|||||||
Beginning
balances
|
196,059
|
8,528
|
14,049
|
218,636
|
|||||||||
Provision
(recoveries)
|
(19,118
|
)
|
1,202
|
13,673
|
(4,243
|
)
|
|||||||
Recoveries
of written-off loans
|
31,546
|
1,064
|
11,674
|
44,284
|
|||||||||
Loan
portfolio written-off
|
(25,971
|
)
|
(2,447
|
)
|
(21,441
|
)
|
(49,859
|
)
|
|||||
Translation
result
|
858
|
906
|
4
|
1,768
|
|||||||||
Ending
balances (*)
|
183,374
|
9,253
|
17,959
|
210,586
|
2005
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Beginning
balances
|
243,799
|
10,604
|
17,470
|
271,873
|
|||||||||
Provision
(recoveries)
|
(24,812
|
)
|
284
|
18,172
|
(6,356
|
)
|
|||||||
Recoveries
of written-off loans
|
30,497
|
737
|
3,798
|
35,032
|
|||||||||
Allowance
disposal related to the sale of Banco Tequendama, note
2(c)
|
(8,871
|
)
|
-
|
(153
|
)
|
(9,024
|
)
|
||||||
Loan
portfolio written-off
|
(43,651
|
)
|
(3,094
|
)
|
(24,660
|
)
|
(71,405
|
)
|
|||||
Translation
result
|
(903
|
)
|
(3
|
)
|
(578
|
)
|
(1,484
|
)
|
|||||
Ending
balances (*)
|
196,059
|
8,528
|
14,049
|
218,636
|
(*)
|
The
movement in the allowance for loan losses includes the allowance
for
direct and indirect credits for approximately US$211.3 and US$18.4
million, respectively, as of December 31, 2007 (approximately US$190.3
and
US$20.3 million; and US$197.5 and US$21.1 million, as of December
31, 2006
and 2005, respectively). The allowance for indirect loan losses is
included in the “Other liabilities” caption of the consolidated balance
sheet, note 13(a).
|
(e) |
Part
of the loan portfolio is collateralized with guarantees received
from
clients, which mainly consist of mortgages, trust assignments, credit
instruments, financial instruments, industrial pledges and mercantile
pledges.
|
(f) |
Interest
on past due loans and loans in legal collection are recognized
when
collected.
|
(g) |
As
of December 31, 2007 and 2006, the direct gross loan portfolio classified
by maturity, based in the remaining period to the repayment date
is as
follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Outstanding
loans -
|
|||||||
Up
to 1 year
|
4,980,021
|
3,774,711
|
|||||
From
1 to 3 years
|
1,443,070
|
797,458
|
|||||
From
3 to 5 years
|
666,670
|
464,718
|
|||||
Over
5 years
|
1,199,568
|
857,620
|
|||||
Past
due loans -
|
|||||||
Up
to 4 months
|
20,825
|
20,655
|
|||||
Over
4 months
|
20,122
|
21,613
|
|||||
Under
legal collection loans
|
20,541
|
34,502
|
|||||
Total
|
8,350,817
|
5,971,277
|
8. |
Financial
assets and financial liabilities designated at fair value through
profit
and loss
|
(a) |
This
item is made up as follows:
|
Assets
|
Liabilities
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
US$(000)
|
|
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||
Indexed
certificates Citigroup (b)
|
162,592
|
53,116
|
-
|
-
|
|||||||||
Credit
linked notes (c)
|
50,561
|
-
|
50,561
|
-
|
|||||||||
213,153
|
53,116
|
50,561
|
-
|
(b) |
In
July 2006, BCP signed a contract with Citigroup Global Markets Holdings
Inc., Citigroup Capital Limited and Citigroup Capital Market Inc.,
with
the purpose of implementing an economic hedge to offset the volatility
generated by the liabilities and related expenses that result from
the
stock appreciation rights (SARs) of Credicorp, note 20. Likewise,
in March
2007, the Bank signed an additional contract with similar conditions
of
the contract signed in July 2006.
|
(c) |
During
the year 2007, the Group has acquired debt instruments in the form
of
"Credit linked notes”, which have been issued by the Bear Stearns Global
Asset Holdings Ltd. and are linked to debt instruments issued by
the
Republic of Peru or any successor of this (credit default swap);
these
instruments have been acquired for the purpose of providing financial
instruments with the same terms, risk and benefits to certain
clients.
|
9. |
Receivable
and payable accounts from insurance
contracts
|
(a) |
This
caption is made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Assets-
|
|||||||
Premiums
and other policies receivable (b)
|
85,495
|
61,279
|
|||||
Accounts
receivable from reinsurers and co-insurers (c)
|
116,141
|
35,181
|
|||||
Total
|
201,636
|
96,460
|
|||||
Liabilities-
|
|||||||
Accounts
payable to re-insurers and co-insurers (c)
|
21,914
|
25,134
|
(b) |
The
premiums and other polices receivable correspond
to:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Property
and casualty insurance
|
73,524
|
51,941
|
|||||
Life
insurance
|
4,857
|
4,974
|
|||||
Health
insurance
|
7,114
|
4,364
|
|||||
85,495
|
61,279
|
2007
|
2006
|
||||||||||||
|
US$(000)
|
%
|
US$(000)
|
%
|
|||||||||
Non
past due accounts receivable
|
71,830
|
84
|
50,521
|
83
|
|||||||||
Past
due accounts receivable
|
|||||||||||||
Up
to 30 days
|
6,793
|
8
|
7,117
|
12
|
|||||||||
From
31 to 60 days
|
2,016
|
2
|
1,379
|
2
|
|||||||||
From
61 to 90 days
|
1,748
|
2
|
239
|
-
|
|||||||||
More
than 90 days
|
3,108
|
4
|
2,023
|
3
|
|||||||||
85,495
|
100
|
61,279
|
100
|
(b) |
The
movement and balance of accounts receivable and payable to reinsurers
and
coinsurers are as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Beginning
balances
|
35,181
|
35,288
|
|||||
Reported
claims of premiums ceded
|
86,458
|
7,423
|
|||||
Premiums
ceded unearned during the year
|
(14,538
|
)
|
(6,823
|
)
|
|||
Premiums
assumed
|
15,811
|
8,435
|
|||||
Settled
claims of premiums ceded
|
14,213
|
7,019
|
|||||
Collections
and other
|
(20,984
|
)
|
(16,161
|
)
|
|||
Ending
balances
|
116,141
|
35,181
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Beginning
balances
|
25,134
|
36,580
|
|||||
Premiums
ceded to reinsurers
|
53,180
|
70,067
|
|||||
Coinsurance
granted
|
8,153
|
6,430
|
|||||
Payments
and other
|
(64,553
|
)
|
(87,943
|
)
|
|||
Ending
balances
|
21,914
|
25,134
|
10. |
Property,
furniture and equipment,
net
|
(a) |
The
movement of property, furniture and equipment and accumulated
depreciation, for the years ended December 31, 2007 and 2006, is
as
follows:
|
Land
|
Buildings and
other
construction
|
Installations
|
Furniture
and fixtures
|
Computer
hardware
|
Vehicles
and
equipment
|
Work
in progress
|
2007
|
2006
|
||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||
Cost -
|
||||||||||||||||||||||||||||
Balance
as of January 1st
|
30,782
|
250,817
|
88,701
|
69,065
|
185,473
|
17,123
|
17,373
|
659,334
|
626,320
|
|||||||||||||||||||
Additions
|
5,015
|
585
|
7,878
|
3,922
|
13,920
|
3,847
|
18,734
|
53,901
|
43,973
|
|||||||||||||||||||
Merger
additions, note 2(a)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5,796
|
|||||||||||||||||||
Sales
and transfers
|
1,492
|
11,839
|
3,045
|
550
|
(2,261
|
)
|
(333
|
)
|
(19,084
|
)
|
(4,752
|
)
|
(16,755
|
)
|
||||||||||||||
Balance
as of December 31
|
37,289
|
263,241
|
99,624
|
73,537
|
197,132
|
20,637
|
17,023
|
708,483
|
659,334
|
|||||||||||||||||||
Accumulated
depreciation -
|
||||||||||||||||||||||||||||
Balance
as of January 1st
|
-
|
133,798
|
57,008
|
55,471
|
151,457
|
6,122
|
-
|
403,856
|
378,021
|
|||||||||||||||||||
Additions
|
-
|
6,823
|
7,192
|
3,380
|
14,299
|
1,841
|
-
|
33,535
|
31,477
|
|||||||||||||||||||
Merger
additions, note 2(a)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,736
|
|||||||||||||||||||
Sales
and transfers
|
-
|
(575
|
)
|
(387
|
)
|
(422
|
)
|
(2,175
|
)
|
(284
|
)
|
-
|
(3,843
|
)
|
(9,378
|
)
|
||||||||||||
Balance
as of December 31
|
-
|
140,046
|
63,813
|
58,429
|
163,581
|
7,679
|
-
|
433,548
|
403,856
|
|||||||||||||||||||
Net
book value
|
37,289
|
123,195
|
35,811
|
15,108
|
33,551
|
12,958
|
17,023
|
274,935
|
255,478
|
(b) |
Banks,
financial institutions and insurance companies located in Peru are
not
allowed to pledge their fixed assets.
|
(c) |
As
of December 31, 2007, Credicorp and its Subsidiaries have property
available for sale for US$24.4 million approximately, net of its
accumulated depreciation amounted US$7.3 million approximately (US$25.2
and US$7.7 million, respectively, as of December 31,
2006).
|
(d) |
Management
periodically review the assets´ residual value, the useful life and the
method of depreciation to ensure that the method and period of
depreciation chosen are consistent with the economic benefits and
life
expectations for use of property, furniture and equipment items.
In
Management’s opinion, there is no evidence of impairment of property,
furniture and equipment as of December 31, 2007 and
2006.
|
11. |
Assets
seized, net
|
(a) |
The
Group obtained assets by taking possession of collateral held as
security,
or calling upon other credit enhancements included in the caption
“Assets
seized”. As of December 31, 2007 and 2006, this caption includes land,
buildings, machinery and equipment received in payment of loans.
Assets
seized were recorded at the lower of cost or estimated fair values
determined on the basis of technical third party appraisals. This
item is
made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Assets
seized
|
36,481
|
52,432
|
|||||
Reserve
|
(16,866
|
)
|
(23,005
|
)
|
|||
Total
|
19,615
|
29,427
|
(b) |
The
changes in the reserve for assets seized as of December 31, 2007,
2006 and
2005 are summarized as follows:
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Opening
balances
|
23,005
|
32,096
|
34,666
|
|||||||
Provision
|
3,057
|
6,387
|
16,959
|
|||||||
Assets
retired related to the sell of Banco Tequendama, note 2(c)
|
-
|
-
|
(1,678
|
)
|
||||||
Sold
assets
|
(9,196
|
)
|
(15,478
|
)
|
(17,851
|
)
|
||||
Ending
balances
|
16,866
|
23,005
|
32,096
|
12. |
Intangibles
assets and goodwill, net
|
(a) |
Intangibles
-
|
Description
|
Client
Relationships
|
Software
|
Developments
|
Others
|
2007
|
2006
|
|||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||
Cost
-
|
|||||||||||||||||||
Balance
as of January 1st
|
88,378
|
40,917
|
32,447
|
10,283
|
172,025
|
51,082
|
|||||||||||||
Additions
(i)
|
-
|
14,706
|
15,606
|
92
|
30,404
|
19,767
|
|||||||||||||
Business
combination, note 2(a)
|
-
|
-
|
-
|
-
|
-
|
107,842
|
|||||||||||||
Retirements
and write - off (ii)
|
-
|
(7,436
|
)
|
(6,632
|
)
|
(1,124
|
)
|
(15,192
|
)
|
(6,666
|
)
|
||||||||
Balance
as of December 31
|
88,378
|
48,187
|
41,421
|
9,251
|
187,237
|
172,025
|
|||||||||||||
Accumulated
amortization -
|
|||||||||||||||||||
Balance
as of January 1st
|
1,473
|
20,665
|
18,439
|
4,643
|
45,220
|
26,422
|
|||||||||||||
Amortization
of the year
|
3,544
|
6,724
|
4,780
|
2,430
|
17,478
|
18,840
|
|||||||||||||
Business
combination, note 2(a)
|
-
|
-
|
-
|
-
|
-
|
6,437
|
|||||||||||||
Retirements
and write - off (ii)
|
-
|
(7,456
|
)
|
(6,677
|
)
|
(1,013
|
)
|
(15,146
|
)
|
(6,479
|
)
|
||||||||
Balance
as of December 31
|
5,017
|
19,933
|
16,542
|
6,060
|
47,552
|
45,220
|
|||||||||||||
Net
book value
|
83,361
|
28,254
|
24,879
|
3,191
|
139,685
|
126,805
|
(i) |
During
the year ended December 31, 2007 Credicorp has capitalized disbursements
related to the implementation of diverse systems projects, mainly
those
related to the ERP project (aimed to the implementation and development
of
SAP System) and the SERIVA Project (aimed to the implementation and
development of the integrated module for operations of Capital Market)
of
its subsidiary BCP.
|
(ii) |
During
2007, the Group wrote off certain intangibles assets fully amortized
and
out of use for US$15.1 million.
|
(b) |
Goodwill
-
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Goodwill
-
|
|||||||
Prima
AFP (AFP Unión Vida S.A.), note 2(a)
|
44,594
|
49,047
|
|||||
Banco
de Crédito del Perú
|
15,582
|
12,300
|
|||||
El
Pacífico Peruano - Suiza
|
13,007
|
13,007
|
|||||
Atlantic
Security Holding Corporation
|
10,660
|
10,660
|
|||||
Coporación
Novasalud Perú S.A. EPS
|
3,744
|
3,828
|
|||||
Book
value, net
|
87,587
|
88,842
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Cost
-
|
||||||||||
Opening
balance
|
88,842
|
33,557
|
33,557
|
|||||||
Acquisition,
notes 2(a) and 3(b)
|
3,282
|
56,285
|
-
|
|||||||
Decreases
|
(4,537
|
)
|
(1,000
|
)
|
-
|
|||||
Final
balance
|
87,587
|
88,842
|
33,557
|
13. |
Other
assets and other
liabilities
|
(a) |
These
items are made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Other
assets -
|
|||||||
Financial
instruments:
|
|||||||
Accounts
receivable
|
47,653
|
48,149
|
|||||
Derivatives
receivable (b)
|
45,843
|
19,134
|
|||||
Operations
in process (d)
|
35,786
|
29,752
|
|||||
Value
added tax credit
|
55,989
|
6,220
|
|||||
Income
tax prepayments, net
|
12,397
|
14,509
|
|||||
197,668
|
117,764
|
||||||
Non-financial
instruments:
|
|||||||
Deferred
expenses (c)
|
24,468
|
34,721
|
|||||
Deferred
income tax asset, note 19(c)
|
66,856
|
38,016
|
|||||
Deferred
fees
|
30,634
|
11,339
|
|||||
Investments
in related companies
|
4,599
|
5,657
|
|||||
Other
|
16,160
|
12,575
|
|||||
142,717
|
102,308
|
||||||
Total
|
340,385
|
220,072
|
|||||
Other
liabilities -
|
|||||||
Financial
instruments:
|
|||||||
Payroll,
taxes, salaries and other personnel expenses
|
181,223
|
104,635
|
|||||
Accounts
payable
|
122,029
|
79,039
|
|||||
Derivatives
payable (b)
|
69,662
|
7,774
|
|||||
Operations
in process (d)
|
36,063
|
41,606
|
|||||
Contributions
|
31,618
|
12,154
|
|||||
Allowance
for indirect loan losses, note 7(d)
|
18,381
|
20,308
|
|||||
458,976
|
265,516
|
||||||
Non-financial
instruments:
|
|||||||
Deferred
income tax liability, note 19(c)
|
89,825
|
65,810
|
|||||
Provision
for sundry risks (e)
|
24,038
|
17,179
|
|||||
Other
|
17,206
|
7,608
|
|||||
131,069
|
90,597
|
||||||
Total
|
590,045
|
356,113
|
(b) |
The
table below shows the fair value of derivative financial instruments,
recorded as assets or liabilities, together with their notional amounts.
The notional amount, recorded gross, is the amount of a derivative’s
underlying asset and is the basis upon which changes in the value
of
derivatives are measured. The notional amounts indicate the volume
of
transactions outstanding at the year end and are not indicative of
the
market risk nor the credit risk, note
21(d).
|
2007
|
||||||||||
Assets
|
Liabilities
|
Notional amount
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Derivatives
held for trading (i) -
|
||||||||||
Forward
foreign exchange contracts
|
36,546
|
19,414
|
2,210,179
|
|||||||
Interest
rate swaps
|
9,297
|
10,986
|
581,841
|
|||||||
Currency
swaps
|
-
|
1,194
|
118,552
|
|||||||
Derivatives
held as cash flow and fair value hedge (ii) -
|
||||||||||
Interest
rate swaps
|
-
|
37,433
|
696,000
|
|||||||
Cross
Currency Swap
|
-
|
635
|
50,420
|
|||||||
45,843
|
69,662
|
3,656,992
|
2006
|
||||||||||
Assets
|
Liabilities
|
Notional amount
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Derivatives
held for trading (i) -
|
||||||||||
Forward
foreign exchange contracts
|
12,236
|
4,491
|
1,153,192
|
|||||||
Interest
rate derivatives
|
3,656
|
1,590
|
298,158
|
|||||||
Currency
swaps
|
304
|
1,693
|
48,883
|
|||||||
Derivatives
held as cash flow hedge (ii) -
|
||||||||||
Interest
rate swaps
|
2,938
|
-
|
196,000
|
|||||||
19,134
|
7,774
|
1,696,233
|
(i) |
The
Group’s derivative trading activities mainly relate to deals with
customers which are normally laid off with counterparties. The Group
may
also take positions with the expectation of profiting from favorable
movements in prices, rates or indices. Also included under this heading
are any derivatives which do not meet IAS 39 hedging
requirement.
|
(ii) |
The
Group is exposed to variability in future interest cash flows on
non-trading assets and liabilities which bear interest at a variable
rate.
The Group uses interest rate swaps as cash flow hedges of these interest
rate risks. A schedule indicating as of December 31, 2007 the periods
when
the hedged cash flows are expected to occur and when they are expected
to
affect the consolidated income statement is as
follows:
|
Up to 1 year
|
From 1 to 3
years
|
From 3 to 5
years
|
Over 5 years
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Cash
outflows (liabilities)
|
36,289
|
64,233
|
44,217
|
34,684
|
|||||||||
Income
statement
|
(6,693
|
)
|
(20,503
|
)
|
(7,560
|
)
|
(2,890
|
)
|
(c) |
As
of December 31, 2007, this caption includes mainly prepaid insurance
and
prepaid premiums ceded to reinsurers for US$11.3 million and US$3.4
million, respectively (US$10.5 million and US$2.0 million, respectively,
as of December 31, 2006).
|
(d) |
Operations
in process include deposits received, loans disbursed, payments collected,
funds transferred and other similar types of transactions, which
are
realized at the end of the month and not reclassified to their final
consolidated balance sheets accounts until the beginning days of
the
following month. These transactions do not affect the Group’s net
income.
|
(e) |
The
movement of the provision for sundry risks for the three years ended
December 31, 2007, 2006 and 2005 is summarized as
follows:
|
|
2007
|
2006
|
2005
|
|||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Beginning
balances
|
17,179
|
18,768
|
19,379
|
|||||||
Provision,
note 26
|
8,096
|
6,461
|
5,567
|
|||||||
Decreases
|
(1,237
|
)
|
(8,050
|
)
|
(6,178
|
)
|
||||
Ending
balances
|
24,038
|
17,179
|
18,768
|
14. |
Deposits
and obligations
|
(a) |
This
item is made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Non-interest
bearing deposits and obligations -
|
|||||||
In
Peru
|
2,257,840
|
1,577,315
|
|||||
In
other countries
|
668,468
|
412,249
|
|||||
2,926,308
|
1,989,564
|
||||||
Interest
bearing deposits and obligations -
|
|||||||
In
Peru
|
6,591,815
|
5,213,044
|
|||||
In
other countries
|
1,781,548
|
1,596,526
|
|||||
8,373,363
|
6,809,570
|
||||||
11,299,671
|
8,799,134
|
||||||
Interest
payable
|
51,043
|
39,857
|
|||||
Total
|
11,350,714
|
8,838,991
|
(b) |
As
of December 31, 2007 and 2006, the balance of deposits and obligations
by
type of transaction is made up as
follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Time
deposits
|
3,967,864
|
3,218,157
|
|||||
Demand
deposits
|
3,638,593
|
2,564,268
|
|||||
Saving
deposits
|
2,380,904
|
1,951,978
|
|||||
Severance
indemnity deposits
|
896,283
|
775,027
|
|||||
Client
- Repurchase agreements
|
325,908
|
228,165
|
|||||
Bank’s
negotiable certificates
|
90,119
|
61,539
|
|||||
Total
|
11,299,671
|
8,799,134
|
(c) |
As
of December 31, 2007, the total amount of individual time deposits
and
bank certificates that exceed US$100,000 are approximately US$3,706.3
and
US$49.0 million, respectively (US$2,722.6 and US$35.9 million,
respectively, as of December 31,
2006).
|
(d) |
Interest
rates applied to different deposits and obligations accounts are
determined by the Group considering interest rates prevailing in
the
market in which the subsidiaries operate.
|
(e) |
The
time deposits balance classified by maturity is made up as
follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Up
to 3 months
|
2,944,189
|
2,219,948
|
|||||
From
3 months to 1 year
|
699,479
|
799,584
|
|||||
From
1 to 3 years
|
254,750
|
163,283
|
|||||
From
3 to 5 years
|
30,743
|
29,226
|
|||||
More
than 5 years
|
38,703
|
6,116
|
|||||
Total
|
3,967,864
|
3,218,157
|
15. |
Due
to banks and correspondents and borrowed funds
|
(a) |
Due
to bank and correspondents -
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
International
funds and others (i)
|
1,145,340
|
346,945
|
|||||
Promotional
credit lines (ii)
|
196,204
|
177,900
|
|||||
Inter-bank
funds
|
102,470
|
41,077
|
|||||
1,444,014
|
565,922
|
||||||
Interest
payable
|
9,247
|
5,067
|
|||||
Total
|
1,453,261
|
570,989
|
(i) |
The
balance of international funds and others corresponds to the following
operations:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Syndicated
facility (*)
|
300,000
|
15,000
|
|||||
Corporación
Andina de Fomento - CAF
|
150,000
|
85,000
|
|||||
Wachovia
Bank
|
145,000
|
65,200
|
|||||
Banco
Latinoamericano de Exportaciones - BLADEX
|
80,000
|
105,000
|
|||||
JP
Morgan Chase & Co.
|
50,000
|
-
|
|||||
Commerz
Bank
|
44,780
|
-
|
|||||
Citibank
|
40,000
|
-
|
|||||
Bayerische
Landersbank
|
40,000
|
-
|
|||||
Scotiabank
Peru S.A.A.
|
-
|
36,000
|
|||||
Other
|
295,560
|
40,745
|
|||||
Total
|
1,145,340
|
346,945
|
(*) |
This
facility is related to three loans of US$100 million each one, with
three
months maturity; which will be replaced by a medium-term syndicated
loan
currently under negotiation.
|
(ii) |
The
promotional credit lines represent loans granted to BCP by Corporación
Financiera de Desarrollo (COFIDE), to promote the development of
Peru,
have maturities between March 2008 and December 2027 and their interest
rates fluctuated between 5.73 and 7.75 percent annual (between January
2007 and December 2021 and their interest effective rate fluctuated
between 5.65 and 7.90 percent annual as of December 31, 2006). These
credit lines are secured by a loan portfolio amounting to US$196.2
and
US$177.9 million as of December 31, 2007 and 2006, respectively.
These
lines include covenants specifying the use of the funds, financial
conditions that the borrower must maintain and other administrative
matters. In Management’s opinion, these covenants do not limit the Group’s
operations and the Group is in compliance at the consolidated balance
sheet date.
|
(b) |
Borrowed
funds -
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
CCR
Inc. MT-100, Payment rights master Trust -
|
|||||||
2005
Series A and B (i)
|
280,000
|
280,000
|
|||||
2006
Series A (ii)
|
90,404
|
90,612
|
|||||
2007
Serie A (iii)
|
350,000
|
-
|
|||||
2007
Serie B (iii)
|
150,000
|
-
|
|||||
Total
|
870,404
|
370,612
|
(i) |
Amount
represents the loan transaction made by BCP in November 2005 for
US$230.0
million, related to Series 2005-A Floating Rate Certificates due
2012, and
US$50.0 million related to Series 2005-B Floating Rate Certificates
due
2009. The certificates bear a variable interest rate of one month
Libor
plus 0.21 percent for the 2005-A Series and one month Libor plus
0.60
percent for the Series 2005-B. As of December 31, 2007 and December
31,
2006, the balance of this obligation amounts to US$280.0 million.
A
portion of the loan (70 percent), subject to variable interest rate
risk,
has been hedged through an interest rate swap hedge operation for
a
notional amount of US$196.0 million, note
21(d).
|
(ii) |
Amount
represents the loan transaction made by the BCP in March 2006 for
US$100.0
million, related to Series 2006-A Floating Rate Certificates due
2016. The
certificates bear a variable interest rate of one month Libor plus
0.24
percent. As of December 31, 2007, the balance of this obligation
amounts
to US$90.4 million (US$90.6 million as of December
31,2006).
|
(iii) |
Amount
represents the loan transaction made by the BCP in July 2007 for
US$350.0
million and US$150 million, related to Series 2007-A Floating Rate
Certificates due 2017 and Series 2007-B Floating Rate Certificates
due
2014. The certificates bear a variable interest rate of one month
Libor
plus 0.28 percent and 0.25 percents for series 2007-A and 2007-B,
respectively. These loans, subject to variable interest rate risk,
have
been hedged through three interest rate swap hedge operations for
a
notional amount of US$500.0 million, note
21(d).
|
(c) |
As
of December 31, 2007 and 2006, maturities of due to bank and
correspondents and borrowed funds are shown below, based in the remaining
period to the repayment date:
|
Due
to bank and correspondents
|
2007
|
2006
|
|||||
US$(000)
|
US$(000)
|
||||||
Up
to 3 months
|
670,153
|
279,802
|
|||||
From
3 months to 1 year
|
307,170
|
126,447
|
|||||
From
1 to 3 years
|
338,802
|
23,457
|
|||||
From
3 to 5 years
|
105,694
|
22,001
|
|||||
More
than 5 years
|
22,195
|
114,215
|
|||||
Total
|
1,444,014
|
565,922
|
Borrowed
funds
|
2007
|
2006
|
|||||
US$(000)
|
US$(000)
|
||||||
Up
to 1 year
|
8,165
|
-
|
|||||
From
1 to 3 years
|
148,921
|
61,217
|
|||||
From
3 to 5 years
|
303,476
|
166,817
|
|||||
More
than 5 years
|
409,842
|
142,578
|
|||||
Total
|
870,404
|
370,612
|
(d) |
As
of December 31, 2007, the Group has credit lines granted by several
local
and foreign financial institutions amounted to US$1,390.5 million
(US$1,162.5 million as of December 31, 2006) that are available for
future
operating activities or to settle capital
commitments.
|
16. |
Technical,
insurance claims reserves and reserves for unearned
premiums
|
(a) |
This
item is made up as follows:
|
2007
|
|||||||||||||
Technical reserves
|
Reserves for direct claims
|
Claims assumed
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Life insurance
|
500,768
|
50,046
|
-
|
550,814
|
|||||||||
Property
and casualty insurance
|
109,695
|
92,887
|
21,257
|
223,839
|
|||||||||
Health
insurance
|
15,766
|
25,059
|
49
|
40,874
|
|||||||||
Total
|
626,229
|
167,992
|
21,306
|
815,527
|
2006
|
|||||||||||||
Technical reserves
|
Reserves for direct claims
|
Claims assumed
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Life
insurance
|
442,172
|
41,932
|
794
|
484,898
|
|||||||||
Property
and casualty insurance
|
67,640
|
39,429
|
2,164
|
109,233
|
|||||||||
Health
insurance
|
15,029
|
19,053
|
8
|
34,090
|
|||||||||
Total
|
524,841
|
100,414
|
2,966
|
628,221
|
(b) |
Reserves
for insurance claims (direct and
assumed):
|
2007
|
|||||||||||||
Life insurance
|
Property and
casualty insurance
|
Health insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Initial balance
|
42,726
|
41,593
|
19,061
|
103,380
|
|||||||||
Claims
|
63,744
|
152,351
|
108,767
|
324,862
|
|||||||||
Payments
|
(57,626
|
)
|
(79,817
|
)
|
(103,061
|
)
|
(240,504
|
)
|
|||||
Translation
result
|
1,202
|
17
|
341
|
1,560
|
|||||||||
Final
balance
|
50,046
|
114,144
|
25,108
|
189,298
|
2006
|
|||||||||||||
Life insurance
|
Property and
casualty insurance
|
Health insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Initial
balance
|
36,839
|
30,690
|
15,139
|
82,668
|
|||||||||
Claims
|
52,713
|
60,285
|
89,797
|
202,795
|
|||||||||
Payments
|
(49,369
|
)
|
(49,386
|
)
|
(86,119
|
)
|
(184,874
|
)
|
|||||
Translation
result
|
2,543
|
4
|
244
|
2,791
|
|||||||||
Final
balance
|
42,726
|
41,593
|
19,061
|
103,380
|
(c) |
Technical
Reserves:
|
2007
|
|||||||||||||
Life insurance
|
Property and
casualty insurance
|
Health insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Initial
balance
|
442,172
|
67,640
|
15,029
|
524,841
|
|||||||||
Accretion
expenses and other
|
16,499
|
-
|
-
|
16,499
|
|||||||||
Unearned
premium reserves and annual variation, net
|
220
|
42,055
|
737
|
43,012
|
|||||||||
Insurance
subscriptions
|
78,342
|
-
|
-
|
78,342
|
|||||||||
Payments
|
(26,868
|
)
|
-
|
-
|
(26,868
|
)
|
|||||||
Translation
result
|
(9,597
|
)
|
-
|
-
|
(9,597
|
)
|
|||||||
Final
balance
|
500,768
|
109,695
|
15,766
|
626,229
|
2006
|
|||||||||||||
Life insurance
|
Property and
casualty insurance
|
Health insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Initial
balance
|
383,158
|
63,976
|
16,292
|
463,426
|
|||||||||
Accretion
expenses and other
|
12,683
|
-
|
-
|
12,683
|
|||||||||
Unearned
premium reserves and annual variation, net
|
-
|
3,664
|
(1,263
|
)
|
2,401
|
||||||||
Insurance
subscriptions
|
60,227
|
-
|
-
|
60,227
|
|||||||||
Payments
|
(23,356
|
)
|
-
|
-
|
(23,356
|
)
|
|||||||
Translation
result
|
9,460
|
-
|
-
|
9,460
|
|||||||||
Final
balance
|
442,172
|
67,640
|
15,029
|
524,841
|
Modality
|
Mortality Table
|
Technical rates
|
Life immediate annuity
|
RV2004 and B - 85
|
4.80% - 5.22% in US$
4.01% in
S/
|
Dead
an Disability Pension System insurance
|
RV
85 MI - 85H and 85M
|
Provisional
regime 3.00%
Definitive
regime 2.96% in S/
Definitive
regime 4.78% in US$
|
Individual
Life
|
SOC
80 adjustable
|
4.00%
- 5.00%
|
Variation of the reserve
|
||||||||||
Variables
|
Amount of the reserve
|
Amount
|
Percentage
|
|||||||
US$(000)
|
US$(000)
|
%
|
||||||||
Portfolio
in US$ - Basis amount
|
279,027
|
|||||||||
Changes
in interest rates: + 100 bps
|
254,058
|
(24,969
|
)
|
(8.95
|
)
|
|||||
Changes
in interest rates: - 100 bps
|
308,651
|
29,624
|
10.62
|
|||||||
Changes
in Mortality tables to 105%
|
275,951
|
(3,076
|
)
|
(1.10
|
)
|
|||||
Changes
in Mortality tables to 95%
|
282,269
|
3,242
|
1.16
|
Variation
of the reserve
|
||||||||||
Variables
|
Amount of the reserve
|
Amount
|
Percentage
|
|||||||
US$ (000)
|
US$ (000)
|
%
|
||||||||
Portfolio
in S/ - Basis amount
|
15,015
|
|||||||||
Changes
in interest rates: + 100 bps
|
13,353
|
(1,662
|
)
|
(11.07
|
)
|
|||||
Changes
in interest rates: - 100 bps
|
16,692
|
1,677
|
11.17
|
|||||||
Changes
in Mortality tables to 105%
|
14,926
|
(89
|
)
|
(0.59
|
)
|
|||||
Changes
in Mortality tables to 95%
|
15,110
|
95
|
0.63
|
17. |
Bonds
and subordinate notes
issued
|
(a) |
This
item is made up as follows:
|
Weighted
average annual interest rate
|
||||||||||||||||
2007
|
2006
|
Maturity
|
2007
|
2006
|
||||||||||||
%
|
%
|
US$(000)
|
US$(000)
|
|||||||||||||
Bonds -
|
||||||||||||||||
Corporate
bonds (i)
|
6.59
|
6.23
|
Between
February 2008 and December 2014
|
127,331
|
90,173
|
|||||||||||
Leasing
bonds (ii), (iii)
|
6.10
|
5.53
|
Between January 2008 and November 2010 |
167,255
|
177,952
|
|||||||||||
Mortgage
bonds (iii)
|
7.70
|
7.70
|
Between May 2011 and April 2012 |
20,744
|
23,610
|
|||||||||||
Subordinated
bonds
|
6.72
|
6.89
|
Between January 2008 and May 2027 |
104,841
|
96,758
|
|||||||||||
420,171
|
388,493
|
|||||||||||||||
Subordinated
notes -
|
||||||||||||||||
Subordinated
negotiable certificates notes (iv)
|
113,503
|
120,000
|
||||||||||||||
Subordinated
notes (iv)
|
161,308
|
-
|
||||||||||||||
694,982
|
508,493
|
|||||||||||||||
Interest
payable
|
7,316
|
4,079
|
||||||||||||||
Total
|
702,298
|
512,572
|
(i) |
During
2007, the Group issued corporate bonds for US$50.1 million (US$47.2
million corporate bonds issued during 2006) and redeemed bonds for
US$18.8
million (US$43.4 million during 2006). The details of the new issuance
are
the following:
|
Issuance 2007
|
Amount
|
Currency
|
Maturity
|
Rate
|
US$(000)
|
(%)
|
|||
Second
Program of Corporate Bonds BCP
|
||||
First
issuance - Series A (*)
|
50,067
|
Peruvian
|
19/12/2014
|
6.84
|
Issuance 2006
|
Amount
|
Currency
|
Maturity
|
Rate
|
US$(000)
|
(%)
|
|||
First
Program of Corporate Bonds BCP
|
||||
Sixth
issuance - Series B
|
6,258
|
Peruvian
|
08/08/2008
|
6.37
|
Sixth
issuance - Series A
|
6,258
|
Peruvian
|
27/02/2008
|
5.81
|
Eight
issuance - Series B
|
10,951
|
Peruvian
|
06/09/2010
|
6.31
|
Eight
issuance - Series C
|
7,822
|
Peruvian
|
21/09/2010
|
6.25
|
Eight
issuance - Series D
|
5,006
|
Peruvian
|
11/10/2010
|
6.12
|
Ninth
issuance - Series B
|
7,822
|
Peruvian
|
03/03/2011
|
6.93
|
Tenth
issuance - Series B
|
3,129
|
Peruvian
|
24/03/2013
|
8.00
|
Total
|
47,246
|
(*)
|
Based
on this issuance, it has been obtained a “Cross currency swap” operation
from JP Morgan Chase & Co.; with the objective to convert the risk
profile of the bonds from Peruvian currency to US Dollars. Likewise,
the
fixed annual nominal interest rate of 6.84 percent has been changed
to a
variable rate of Libor plus 84 basic points, note
21(d).
|
(ii) |
During
the course of 2007, Banco de Crédito del Perú S.A., a subsidiary of
Credicorp, issued lease bonds amounting to US$39.6 million with maturities
between June 2009 and January 2010. Also, in 2007, bonds were redeemed
by
Credicorp for US$55.0 million (US$41.6 million in
2006).
|
(iii) |
Leasing
and mortgages bonds are collateralized by the fixed assets financed
by the
Group with these resources.
|
(iv) |
In
October 2007 and November 2006, BCP through its Panama branch, issued
Subordinated notes and Subordinated negotiable certificates notes
amounted
to S/483.3 millions (equivalent to US$161.3 million) and US$120.0
million
on the international market with maturities on the years 2022 and
2021,
respectively. These debts accrued a fixed annual interest rate of
7.17 and
6.95 percent, respectively, for the first 10 years, with payment
each six
months. After the first 10 years, the interest rate is changed to
a
variable interest rate, established by the market interest rate,
of the
sovereign bonds issued by the Peruvian Government which maturity
is in
year 2037, plus 150 basis points and Libor plus 2.79 percent,
respectively, with half-year and quarterly payments. At the end of
the
first 10 years, the Bank can redeem 100 percent of the debt, without
penalties. This subordinated debt has certain financial and operating
covenants which in Management’s opinion, the Group is in compliance at the
consolidated balance sheet date.
|
(b) |
The
bonds and subordinate bonds issued as of December 31, 2007 and 2006,
classified by maturity are shown
below:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Up
to 3 months
|
61,188
|
19,316
|
|||||
From
3 months to 1 year
|
85,968
|
56,701
|
|||||
From
1 to 3 years
|
154,953
|
177,873
|
|||||
From
3 to 5 years
|
68,007
|
110,224
|
|||||
Over
5 years
|
324,866
|
144,379
|
|||||
Total
|
694,982
|
508,493
|
18. |
Equity
|
(a) |
Share
capital -
|
(b) |
Treasury
stock -
|
(c) |
Reserves
-
|
Unrealized net gains (losses) of:
|
||||||||||
Available-for-sale investments
|
Derivatives used
as cash flow
hedge
|
Total
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Balances
as of January 1st,
2005
|
76,131
|
-
|
76,131
|
|||||||
Unrealized
net gain from available-for-sale investments Note 6(c)
|
7,121
|
-
|
7,121
|
|||||||
Transfer
of net realized gain from investments available-for-sale to the income
statement, net of realized loss, note 6(c)
|
(1,572
|
)
|
-
|
(1,572
|
)
|
|||||
Net
gain on cash flow hedge
|
-
|
1,622
|
1,622
|
|||||||
Balances
as of December 31, 2005
|
81,680
|
1,622
|
83,302
|
|||||||
|
||||||||||
Unrealized
net gain from available-for-sale investments note 6(c)
|
69,411
|
-
|
69,411
|
|||||||
Transfer
of net realized gain from investments available-for-sale to the income
statement, net of realized loss, note 6(c)
|
(6,620
|
)
|
-
|
(6,620
|
)
|
|||||
Net
gain on cash flow hedge, note 13(b) (ii)
|
-
|
1,316
|
1,316
|
|||||||
Balances
as of December 31, 2006
|
144,471
|
2,938
|
147,409
|
|||||||
|
||||||||||
Net
unrealized gain from available-for-sale investments note 6(c)
|
85,129
|
-
|
85,129
|
|||||||
Transfer
of net realized gain from investments available-for-sale to the income
statement, net of realized loss and impairment, note 6(c)
|
(17,634
|
)
|
-
|
(17,634
|
)
|
|||||
Transfer
of impairment on investment available-for-sale to income statement,
note
6(c)
|
5,017
|
-
|
5,017
|
|||||||
Net
loss on cash flow hedge, note 13(b) (ii)
|
-
|
(40,371
|
)
|
(40,371
|
)
|
|||||
|
||||||||||
Balances
as of December 31, 2007
|
216,983
|
(37,433
|
)
|
179,550
|
(d) |
Dividends
distribution -
|
(e) |
Equity
for legal purposes (Regulatory capital)
-
|
19. |
Taxes
|
(a) |
Credicorp
is not subject to any type of income taxes or taxes on capital gains,
equity or property. The Peruvian subsidiaries are subject to corporate
taxation on income under the Peruvian Tax system. The statutory income
tax
rate payable in Peru is 30 percent of taxable profits in 2007, 2006
and
2005.
|
2007
|
2006
|
2005
|
||||||||
%
|
|
%
|
|
%
|
|
|||||
Peruvian
statutory tax rate
|
30.00
|
30.00
|
30.00
|
|||||||
Increase
(decrease) in the statutory tax rate due to:
|
||||||||||
(i)
Increase
(decrease) arising from net income of subsidiaries not domiciled
in
Peru
|
0.46
|
4.08
|
1.05
|
|||||||
(ii)
Non-taxable
costs (income), net
|
(5.76
|
)
|
(4.86
|
)
|
(6.23
|
)
|
||||
(iii)
Translation
results not considered for tax purposes
|
(3.15
|
)
|
(3.96
|
)
|
2.58
|
|||||
Effective
income tax rate
|
21.55
|
25.26
|
27.40
|
(b) |
The
deferred income tax has been calculated on all temporary differences
applied at an income tax rate of 30 percent. The income tax expense
analysis as of December 31, 2007, 2006 and 2005 is as
follows:
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Current
-
|
||||||||||
In
Peru
|
114,496
|
85,413
|
80,630
|
|||||||
In
other countries
|
2,712
|
2,960
|
4,418
|
|||||||
117,208
|
88,373
|
85,048
|
||||||||
Deferred
-
|
||||||||||
In
Peru
|
(14,921
|
)
|
(4,786
|
)
|
(11,502
|
)
|
||||
Total
|
102,287
|
83,587
|
73,546
|
(c) |
The
following table shows a summary of the Group’s deferred income
taxes:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Assets
|
|||||||
Stock
appreciation rights provision
|
24,001
|
11,047
|
|||||
Allowance
for loan losses, net
|
21,985
|
13,642
|
|||||
Reserve
for sundry risks, net
|
4,550
|
3,412
|
|||||
Tax
loss carry-forward
|
4,451
|
3,244
|
|||||
Non-accrued
interest
|
3,243
|
1,830
|
|||||
Other
|
8,626
|
4,841
|
|||||
Deferred
income tax asset
|
66,856
|
38,016
|
|||||
Liabilities
|
|||||||
Unrealized
net gains on investments
|
(38,424
|
)
|
(28,330
|
)
|
|||
Intangibles
assets, net
|
(25,205
|
)
|
(26,168
|
)
|
|||
Valuation
of Indexed certificates Citigroup
|
(18,131
|
)
|
(751
|
)
|
|||
Leasing
operations, net
|
(1,250
|
)
|
(2,758
|
)
|
|||
Fixed
assets, net
|
135
|
(2,304
|
)
|
||||
Other
|
(6,950
|
)
|
(5,499
|
)
|
|||
Deferred
income tax liability
|
(89,825
|
)
|
(65,810
|
)
|
|||
Net
deferred income tax liability
|
(22,969
|
)
|
(27,794
|
)
|
(d) |
The
Peruvian tax authorities have the right to review and, if necessary,
amend
the annual tax returns of the Peruvian subsidiaries up to four year
after
its presentation. The major subsidiaries subject to these reviews
are BCP
and PPS. In BCP, the fiscal years 2001, 2002, 2003, 2004 and 2005,
have
been reviewed by the tax authorities. As a result of such revisions,
no
significant additional taxes have arisen in excess of the previously
accounted for in the Group consolidated financial statements.
|
20. |
Stock
appreciation rights
|
Year of
Issuance
|
Number
of outstanding SARs
issued as of
December 31, 2007
|
Number of Vested SARs
as of December 31
|
Exercise price
|
|||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
US$
|
US$
|
|||||||||||||||
2000
|
49,750
|
49,750
|
68,750
|
8.50
|
8.80
|
|||||||||||
2001
|
73,000
|
73,000
|
81,500
|
5.30
|
5.60
|
|||||||||||
2002
|
92,500
|
92,500
|
117,500
|
6.98
|
7.28
|
|||||||||||
2003
|
151,900
|
151,900
|
220,000
|
8.17
|
8.47
|
|||||||||||
2004
|
237,700
|
237,700
|
317,984
|
10.99
|
11.29
|
|||||||||||
2005
|
384,500
|
349,813
|
281,038
|
16.00
|
16.30
|
|||||||||||
2006
|
497,050
|
310,800
|
215,156
|
25.32
|
25.62
|
|||||||||||
2007
|
648,250
|
271,656
|
-
|
48.50
|
-
|
|||||||||||
2,134,650
|
1,537,119
|
1,301,928
|
Key
assumptions
|
2007
|
2006
|
|||||
Expected
volatility
|
32.70
|
%
|
31.31
|
%
|
|||
Risk
free interest rate
|
3.51
|
%
|
4.71
|
%
|
|||
Expected
lifetime
|
4.92
years
|
5.05
years
|
|||||
Quoted
price of Credicorp shares at year-end
|
US$
|
76.30
|
US$
|
40.94
|
2007
|
2006
|
||||||||||||||||||
Outstanding
SARs
|
Vested
SARs
|
Outstanding
SARs
|
Vested
SARs
|
||||||||||||||||
Number
|
Number
|
Amount
|
Number
|
Number
|
Amount
|
||||||||||||||
US$(000)
|
US$(000)
|
||||||||||||||||||
Balance
as of January 1st
|
1,858,350
|
1,301,928
|
38,761
|
2,201,275
|
1,658,932
|
22,813
|
|||||||||||||
Granted
and vested
|
689,500
|
647,610
|
22,248
|
621,000
|
600,046
|
12,838
|
|||||||||||||
Exercised
|
(410,700
|
)
|
(410,700
|
)
|
(18,801
|
)
|
(948,925
|
)
|
(948,925
|
)
|
(29,292
|
)
|
|||||||
Decrease
|
(2,500
|
)
|
(1,719
|
)
|
(88
|
)
|
(15,000
|
)
|
(8,125
|
)
|
(232
|
)
|
|||||||
Increase
in the
option
fair value
|
-
|
-
|
47,482
|
-
|
-
|
32,634
|
|||||||||||||
Balance
as of December 31
|
2,134,650
|
1,537,119
|
89,602
|
1,858,350
|
1,301,928
|
38,761
|
21. |
Off-balance
sheet accounts
|
(a) |
This
item is made up as follows:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Contingent
credits -
|
|||||||
Guarantees
and stand by letters (c)
|
1,133,476
|
1,204,500
|
|||||
Import
and export letters of credit (c)
|
431,049
|
250,876
|
|||||
1,564,525
|
1,455,376
|
||||||
Responsabilities
under credit lines agreements (e)
|
1,082,115
|
814,746
|
|||||
Forward
foreign exchange contracts - sell (d)
|
939,531
|
561,111
|
|||||
Forward
foreign exchange contracts - buy (d)
|
(1,270,648
|
)
|
(592,081
|
)
|
|||
Swap
contracts (d)
|
|||||||
Interest
rate swaps
|
1,277,841
|
494,158
|
|||||
Currency
swaps
|
118,552
|
48,883
|
|||||
Cross
currency swap
|
50,420
|
-
|
|||||
Total
|
3,762,336
|
2,782,193
|
(b) |
In
the normal course of its business, the Group’s banking subsidiaries are
party to transactions with off-balance sheet risk. These transactions
expose the Group’s banking subsidiaries to credit risk in addition to the
amounts recognized in the consolidated balance sheets.
|
(c) |
Export
and import letters of credit and guarantees and stand by letters
are
conditional commitments issued by the Group to guarantee the performance
of a customer to a third party. Export and import letters of credit
are
mainly issued as credit enhancements for overseas commercial transactions.
Risks associated with these credits are reduced by the participation
of
third parties.
|
(d) |
As
of December 31, 2007 and December 31, 2006, Credicorp has foreign
currency
forwards derivatives (as of December 31, 2006 the Group had a minor
position on options for exchange rates amounted to US$8.7 million).
Foreign currency forwards are commitments to buy or sell currency
at a
future date at a contracted price. Risk arises from the possibility
that
the counter-party to the transaction does not perform as agreed and
the
change in the prices of the underlying currencies. As of December
31, 2007
and 2006, forward foreign currency purchase and sale agreements referred
to above include nominal amounts of approximately US$2,210.2 million
and
US$1,153.2 million, respectively, which have in general maturities
of less
than a year. These agreements are executed to satisfy client requirements
and are recognized in the consolidated financial statements at their
fair
market value. As of December 31, 2007, the forward contracts net
position
is an overbuy of U.S. Dollars of approximately US$331.1 million (overbuy
of approximately US$31.0 million as of December 31,
2006).
|
(e) |
The
responsibilities under credit lines agreements do not correspond
to
commitment of obtain credit; and include credit lines and other consumer
loans that are cancelable upon notification to the consumer.
|
22. |
Interest
and dividend income and interest
expenses
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Interest
and dividend income
|
||||||||||
Interest
loans
|
701,471
|
537,671
|
447,392
|
|||||||
Interest
on deposits in banks
|
105,817
|
93,886
|
37,127
|
|||||||
Interest
from trading securities
|
3,289
|
2,913
|
2,497
|
|||||||
Interest
from investments available-for-sale
|
228,473
|
132,792
|
114,745
|
|||||||
Dividends
from trading securities
|
213
|
1,007
|
2
|
|||||||
Dividends
from investments available-for-sale
|
8,870
|
8,133
|
3,551
|
|||||||
Other
interest income
|
17,841
|
5,600
|
7,118
|
|||||||
Total
|
1,065,974
|
782,002
|
612,432
|
|||||||
Interest
expenses
|
||||||||||
Interest
on deposits and obligations
|
(295,750
|
)
|
(189,552
|
)
|
(119,138
|
)
|
||||
Interest
on bonds and subordinated notes issued
|
(33,592
|
)
|
(25,282
|
)
|
(24,332
|
)
|
||||
Interest
on due to banks and correspondents and borrowed funds
|
(83,070
|
)
|
(56,634
|
)
|
(20,288
|
)
|
||||
Other
interest expenses
|
(19,588
|
)
|
(12,010
|
)
|
(9,401
|
)
|
||||
Total
|
(432,000
|
)
|
(283,478
|
)
|
(173,159
|
)
|
23. |
Banking
services commissions
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Maintenance
of accounts, transfers and credit and debit card services
|
145,926
|
122,534
|
111,074
|
|||||||
Funds
management
|
83,726
|
38,728
|
14,469
|
|||||||
Stock
exchange, securities and custody
|
11,112
|
7,793
|
5,943
|
|||||||
Contingent
credits
|
23,819
|
22,344
|
19,433
|
|||||||
Collections
|
29,308
|
24,514
|
18,893
|
|||||||
Other
|
30,870
|
27,865
|
36,351
|
|||||||
Total
|
324,761
|
243,778
|
206,163
|
24. |
Net
premiums earned
|
Gross
Premiums (*)
|
Ceded to
reinsurers and coinsurers, net |
Assumed
from other
companies, net |
Net premiums
earned |
Percentage
of amount
assumed on net premiums |
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
% | ||||||||||||
As
of December 31, 2007
|
||||||||||||||||
Life
insurance
|
89,598
|
(2,658
|
)
|
1,408
|
88,348
|
1.59
|
||||||||||
Accident
and health insurance
|
129,306
|
(2,488
|
)
|
116
|
126,934
|
0.09
|
||||||||||
Property
and casualty insurance
|
146,331
|
(71,759
|
)
|
7,418
|
81,990
|
9.05
|
||||||||||
Total
premiums
|
365,235
|
(76,905
|
)
|
8,942
|
297,272
|
3.01
|
||||||||||
As
of December 31, 2006
|
||||||||||||||||
Life
insurance
|
66,477
|
(2,923
|
)
|
1,228
|
64,782
|
1.90
|
||||||||||
Accident
and health insurance
|
111,295
|
(2,377
|
)
|
1,526
|
110,444
|
1.38
|
||||||||||
Property
and casualty insurance
|
138,964
|
(64,767
|
)
|
1,838
|
76,035
|
2.42
|
||||||||||
Total
premiums
|
316,736
|
(70,067
|
)
|
4,592
|
251,261
|
1.83
|
||||||||||
As
of December 31, 2005
|
||||||||||||||||
Life
insurance
|
46,239
|
(2,537
|
)
|
965
|
44,667
|
2.16
|
||||||||||
Accident
and health insurance
|
111,785
|
(2,745
|
)
|
1,531
|
110,571
|
1.38
|
||||||||||
Property
and casualty insurance
|
126,377
|
(61,133
|
)
|
(1,527
|
)
|
63,717
|
(2.40
|
)
|
||||||||
Total
premiums
|
284,401
|
(66,415
|
)
|
969
|
218,955
|
0.44
|
25. |
Net
claims incurred for property and casualty, life and health insurance
contracts
|
2007
|
|||||||||||||
Life insurance
|
Property and
casualty insurance |
Health
insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Gross
insurance claims
|
63,744
|
152,351
|
108,767
|
324,862
|
|||||||||
Ceded
claims
|
(52
|
)
|
(84,662
|
)
|
(1,548
|
)
|
(86,262
|
)
|
|||||
Net
insurance claims
|
63,692
|
67,689
|
107,219
|
238,600
|
2006
|
|||||||||||||
Life insurance
|
Property and
casualty insurance |
Health insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Gross
insurance claims
|
52,713
|
60,285
|
89,797
|
202,795
|
|||||||||
Ceded
claims
|
(823
|
)
|
(13,698
|
)
|
(1,752
|
)
|
(16,273
|
)
|
|||||
Net
insurance claims
|
51,890
|
46,587
|
88,045
|
186,522
|
2005
|
|||||||||||||
Life insurance
|
Property and
casualty insurance |
Health insurance
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Gross
insurance claims
|
41,650
|
56,539
|
93,115
|
191,304
|
|||||||||
Ceded
claims
|
(870
|
)
|
(13,970
|
)
|
(964
|
)
|
(15,804
|
)
|
|||||
Net
insurance claims
|
40,780
|
42,569
|
92,151
|
175,500
|
26. |
Other
income and expenses
|
2007
|
2006
|
2005
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Other
income
|
||||||||||
Income
from the sale of assets seized
|
10,689
|
9,244
|
6,202
|
|||||||
Real
estate rental income
|
3,519
|
3,031
|
1,941
|
|||||||
Recoveries
of other accounts receivable and other assets
|
3,113
|
1,763
|
4,512
|
|||||||
Other
|
7,613
|
8,638
|
8,916
|
|||||||
Total
other income
|
24,934
|
22,676
|
21,571
|
|||||||
Other
expenses
|
||||||||||
Commissions
in insurance activities
|
29,135
|
25,555
|
19,289
|
|||||||
Sundry
technical insurance expenses
|
21,929
|
10,910
|
8,183
|
|||||||
Provision
for sundry risks, note 13(e)
|
8,096
|
6,461
|
5,567
|
|||||||
Provisions
for other account receivables
|
2,836
|
3,163
|
7,112
|
|||||||
Loss
from fake bills
|
-
|
-
|
1,960
|
|||||||
Other
|
10,003
|
6,629
|
4,634
|
|||||||
Total
other expenses
|
71,999
|
52,718
|
46,745
|
27. |
Earnings
per share
|
2007
|
2006
|
2005
|
||||||||
Number
of shares in issue:
|
||||||||||
Ordinary
shares, note 18(a)
|
94,382,317
|
94,382,317
|
94,382,317
|
|||||||
Less
- treasury shares, note 18(b)
|
(14,620,842
|
)
|
(14,620,842
|
)
|
(14,620,842
|
)
|
||||
Weighted
outstanding average number of ordinary shares
|
79,761,475
|
79,761,475
|
79,761,475
|
|||||||
Net
income attributable to equity holders of Credicorp (in thousands
of U.S.
dollars)
|
350,735
|
230,013
|
181,885
|
|||||||
Basic
and diluted earnings per share for net income attributable to equity
holders of Credicorp (in U.S. Dollars)
|
4.40
|
2.88
|
2.28
|
28. |
Business
segments
|
(i) |
Banking
business - incorporating corporate and private banking services,
corporate, consumer, micro-business and mortgage loans, credit and
debit
cards, savings, deposits, overdrafts, foreign currency and derivative
products, structure financing, corporate leasing, custody, among
others.
|
(ii) |
Insurance
business - incorporating the issuance of policies of insurance to
cover
claims, such as fires, vehicles, transport, personal accidents and
life
insurance, among others.
|
(i) |
Business
segments by industry (amount expressed in million of U.S. Dollars):
|
External
income
|
Income from
other segments
|
Eliminations
|
Total
income (*)
|
Operating
income (**)
|
Total
assets
|
Fixed
Assets, net
|
Depreciation
and amortization
|
Other
provisions (***)
|
||||||||||||||||||||
2007
|
||||||||||||||||||||||||||||
Banking
|
1,402
|
65
|
(65
|
)
|
1,402
|
614
|
16,245
|
218
|
39
|
35
|
||||||||||||||||||
Insurance
|
377
|
13
|
(13
|
)
|
377
|
110
|
1,138
|
46
|
4
|
-
|
||||||||||||||||||
Pension
funds
|
55
|
(4
|
)
|
4
|
55
|
(1
|
)
|
244
|
11
|
8
|
-
|
|||||||||||||||||
Brokerage
and other
|
47
|
7
|
(7
|
)
|
47
|
(30
|
)
|
79
|
-
|
-
|
(4
|
)
|
||||||||||||||||
Total
consolidated
|
1,881
|
81
|
(81
|
)
|
1,881
|
693
|
17,706
|
275
|
51
|
31
|
||||||||||||||||||
2006
|
||||||||||||||||||||||||||||
Banking
|
975
|
24
|
(24
|
)
|
975
|
447
|
11,090
|
197
|
36
|
2
|
||||||||||||||||||
Insurance
|
316
|
2
|
(2
|
)
|
316
|
115
|
989
|
47
|
4
|
-
|
||||||||||||||||||
Pension
funds
|
23
|
-
|
-
|
23
|
-
|
227
|
11
|
10
|
-
|
|||||||||||||||||||
Brokerage
and other
|
58
|
1
|
(1
|
)
|
58
|
1
|
576
|
-
|
-
|
-
|
||||||||||||||||||
Total
consolidated
|
1,372
|
27
|
(27
|
)
|
1,372
|
563
|
12,882
|
255
|
50
|
2
|
||||||||||||||||||
2005
|
||||||||||||||||||||||||||||
Banking
|
712
|
11
|
(11
|
)
|
712
|
400
|
9,893
|
199
|
35
|
11
|
||||||||||||||||||
Insurance
|
219
|
14
|
(14
|
)
|
219
|
80
|
786
|
46
|
3
|
-
|
||||||||||||||||||
Pension
funds
|
-
|
-
|
-
|
-
|
-
|
18
|
2
|
1
|
-
|
|||||||||||||||||||
Brokerage
and other
|
166
|
3
|
(3
|
)
|
166
|
3
|
339
|
1
|
-
|
-
|
||||||||||||||||||
Total
consolidated
|
1,097
|
28
|
(28
|
)
|
1,097
|
483
|
11,036
|
248
|
39
|
11
|
(ii) |
Segment
information by geographical area (amounts expressed in million of
U.S.
Dollars):
|
2007
|
2006
|
2005
|
||||||||||||||||||||||||||
Total
income (*)
|
Operating
income (**) |
Total
assets
|
Total
income (*)
|
Operating
income (**)
|
Total
assets
|
Total
income (*)
|
Operating
income (**)
|
Total
assets
|
||||||||||||||||||||
Peru
|
1,573
|
625
|
12,693
|
1,152
|
518
|
9,655
|
947
|
438
|
8,336
|
|||||||||||||||||||
Panama
|
102
|
10
|
2,506
|
55
|
7
|
839
|
28
|
3
|
593
|
|||||||||||||||||||
Cayman
Islands
|
100
|
19
|
1,423
|
81
|
14
|
1,364
|
55
|
13
|
1,238
|
|||||||||||||||||||
Bolivia
|
78
|
38
|
815
|
62
|
28
|
654
|
50
|
23
|
493
|
|||||||||||||||||||
Colombia
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
United
States of America
|
28
|
1
|
269
|
22
|
(4
|
)
|
370
|
17
|
6
|
376
|
||||||||||||||||||
Total
consolidated
|
1,881
|
693
|
17,706
|
1,372
|
563
|
12,882
|
1,097
|
483
|
11,036
|
(*) |
Include
total interest and dividend income, other income and net premiums
earned
from insurance activities.
|
(**) |
Operating
income includes the net interest income from banking activities and
the
amount of the net premiums earned, less insurance
claims.
|
(***) |
Correspond
to reserves for assets seized and the allowance for loan
losses.
|
29. |
Transactions
with related parties
|
(a) |
The
consolidated financial statements of the Group as of December 31,
2007 and
2006 include the transactions with related parties of the companies
mentioned in note 3(b). For its 2007 and 2006 consolidated financial
statements, the Group defines related parties as related companies,
the
Board of Directors, the Group’s key executives (defined as the management
of Credicorp’s Holding) and enterprises which are controlled by these
individuals through their majority shareholding or their role as
chairman
or CEO in those companies.
|
(b) |
The
following table shows the main transactions with related companies
as of
December 31, 2007 and 2006.
|
Related companies
|
|||||||
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Direct
loans
|
94,102
|
70,636
|
|||||
Investments
available-for-sale
|
90,396
|
62,125
|
|||||
Deposits
|
31,689
|
25,074
|
|||||
Contingent
credits
|
14,026
|
13,925
|
|||||
Interest
income related to loans
|
2,288
|
2,097
|
|||||
Interest
expense related to deposits
|
2,009
|
1,505
|
|||||
Investments
available-for-sale cost
|
1,673
|
-
|
|||||
Derivatives
at fair value
|
386
|
179
|
|||||
Other
income
|
1,192
|
953
|
(c) |
The
loans, contingent operations and derivative contracts with related
parties
are made in accordance with the normal market conditions available
to
other customers. Outstanding loans balances at the year-end are granted
by
collaterals given by the related part. The loans to related companies
as
of December 31, 2007 had a maturity between January 2008 and September
2017 and an accrued annual interest average of 6.79 percent (as of
December 31, 2006 had a maturity between January 2007 and August
2012 and
an accrued annual interest average of 7.71 percent). As of December
31,
2007, the provision for doubtful debts due to related parties amounts
to
US$0.2 million (US$0.1 million as of December 31, 2006). This amount
is
established based on an assessment performed on a continuous basis
in the
financial position of the related party and the market where it
operates.
|
(d) |
As
of December 31, 2007 and 2006, directors, officers and employees
of the
Group have been involved, directly and indirectly, in credit transactions
with certain subsidiaries of the Group, as permitted by Peruvian
Law
Nº26702, which regulates and limits certain transactions with employees,
directors and officers of a bank or an insurance company in Peru.
As of
December 31, 2007 and 2006, direct loans to employees, directors
and key
management amounts to US$82.5 and US$59.5 million, respectively and
are
paid monthly during their loan enforce and earn interest at similar
market
rates for these loans.
|
(e) |
The
Group key executives compensation as of December 31, 2007 and 2006,
comprises the following captions:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Stock
appreciation rights, note 20
|
27,113
|
23,206
|
|||||
Salaries
|
5,535
|
4,824
|
|||||
Directors
compensations
|
1,162
|
1,173
|
|||||
Other
|
12,947
|
6,962
|
|||||
Total
|
46,757
|
36,165
|
30. |
Financial
instruments classification
|
As of December 31, 2007
|
As of December 31, 2006
|
||||||||||||||||||||||||||||||||||||
Financial assets/liabilities
designated at fair value |
Financial assets/liabilities
designated at fair value |
||||||||||||||||||||||||||||||||||||
Held for
trading |
At inception
|
Loans and
receivables
|
Available for
sale securities |
Liabilities at
amortized
cost |
Total
|
Held for
trading |
At inception
|
Loans and
receivables
|
Available for
sale securities |
Liabilities at
amortized cost |
Total
|
||||||||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||||||
Assets
|
|||||||||||||||||||||||||||||||||||||
Cash
and due from banks
|
-
|
-
|
3,073,865
|
-
|
-
|
3,073,865
|
-
|
-
|
2,733,530
|
-
|
-
|
2,733,530
|
|||||||||||||||||||||||||
Trading
securities
|
50,995
|
-
|
-
|
-
|
-
|
50,995
|
45,136
|
-
|
-
|
-
|
-
|
45,136
|
|||||||||||||||||||||||||
Investments
available-for-sale
|
-
|
-
|
-
|
5,228,641
|
-
|
5,228,641
|
-
|
-
|
-
|
3,450,711
|
-
|
3,450,711
|
|||||||||||||||||||||||||
Loans,
net
|
-
|
-
|
8,039,500
|
-
|
-
|
8,039,500
|
-
|
-
|
5,736,823
|
-
|
-
|
5,736,823
|
|||||||||||||||||||||||||
Financial
assets designated at fair value through profit and loss
|
-
|
213,153
|
-
|
-
|
-
|
213,153
|
-
|
53,116
|
-
|
-
|
-
|
53,116
|
|||||||||||||||||||||||||
Premiums
and other policies receivable
|
-
|
-
|
85,495
|
-
|
-
|
85,495
|
-
|
-
|
61,279
|
-
|
-
|
61,279
|
|||||||||||||||||||||||||
Accounts
receivable from re-insurers and co-insurers
|
-
|
-
|
116,141
|
-
|
-
|
116,141
|
-
|
-
|
35,181
|
-
|
-
|
35,181
|
|||||||||||||||||||||||||
Due
from customers on acceptances
|
-
|
35,901
|
-
|
-
|
35,901
|
-
|
-
|
45,129
|
-
|
-
|
45,129
|
||||||||||||||||||||||||||
Other
assets, note 13
|
45,843
|
-
|
151,825
|
-
|
-
|
197,668
|
19,134
|
-
|
98,630
|
-
|
-
|
117,764
|
|||||||||||||||||||||||||
96,838
|
213,153
|
11,502,727
|
5,228,641
|
-
|
17,041,359
|
64,270
|
53,116
|
8,710,572
|
3,450,711
|
-
|
12,278,669
|
As of December 31, 2007
|
As of December 31, 2006
|
||||||||||||||||||||||||||||||||||||
Financial assets/liabilities
designated at fair value |
Financial assets/liabilities
designated at fair value |
||||||||||||||||||||||||||||||||||||
Held for
trading |
At inception
|
Loans and
receivables
|
Available for
sale securities |
Liabilities at
amortized
cost
|
Total
|
Held for
trading |
At inception
|
Loans and
receivables
|
Available for
sale securities |
Liabilities at
amortized cost
|
Total
|
||||||||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||||||
Liabilities
|
-
|
||||||||||||||||||||||||||||||||||||
Deposits
and obligation
|
-
|
-
|
-
|
-
|
11,350,714
|
11,350,714
|
-
|
-
|
-
|
-
|
8,838,991
|
8,838,991
|
|||||||||||||||||||||||||
Financial
liabilities designated at fair value through profit and
loss
|
-
|
50,561
|
-
|
-
|
-
|
50,561
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Due
to banks and correspondents
|
-
|
-
|
-
|
-
|
1,453,261
|
1,453,261
|
-
|
-
|
-
|
-
|
570,989
|
570,989
|
|||||||||||||||||||||||||
Due
from customers on acceptances
|
-
|
-
|
-
|
-
|
35,901
|
35,901
|
-
|
-
|
-
|
-
|
45,129
|
45,129
|
|||||||||||||||||||||||||
Accounts
payable to re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
21,914
|
21,914
|
-
|
-
|
-
|
-
|
25,134
|
25,134
|
|||||||||||||||||||||||||
Borrowed
funds
|
-
|
-
|
-
|
-
|
870,404
|
870,404
|
-
|
-
|
-
|
-
|
370,612
|
370,612
|
|||||||||||||||||||||||||
Bonds
and subordinated notes issued
|
-
|
-
|
-
|
-
|
702,298
|
702,298
|
-
|
-
|
-
|
-
|
512,572
|
512,572
|
|||||||||||||||||||||||||
Other
liabilities, note 13
|
69,662
|
-
|
-
|
-
|
389,314
|
458,976
|
7,774
|
-
|
-
|
-
|
257,742
|
265,516
|
|||||||||||||||||||||||||
69,662
|
50,561
|
-
|
-
|
14,823,806
|
14,944,029
|
7,774
|
-
|
-
|
-
|
10,621,169
|
10,628,943
|
31.
|
Financial
risk management
|
(a) |
Risk
management structure-
|
(i) |
Board
of Directors
|
(ii) |
Risk
Management Committee
|
(iii) |
Risk
Management Department
|
(iv) |
Internal
Audit
|
(v) |
Treasury
and Foreign Exchange Departments
|
(b) |
Risk
measurement and reporting systems-
|
(c) |
Risk
mitigation-
|
(d) |
Excessive
risk concentration-
|
31.1 |
Credit
risk -
|
(a) |
The
Group takes on exposure to credit risk, which is the risk that a
counterparty will cause a financial loss for the Group by failing
to
discharge an obligation. Credit risk is the most important risk for
the
Group’s business; management therefore carefully manages its exposure to
credit risk. Credit exposures arise principally in lending activities
that
lead to loans, and investment activities that bring debt securities
and
other bills into the Group’s asset portfolio. There is also credit risk in
off-balance sheet financial instruments, such as contingent credits,
which
expose the Group to similar risks to loans and these are mitigated
by the
same control processes and policies. Likewise, credit risk arising
from
derivative financial instruments is, at any time, limited to those
with
positive fair values, as recorded in the consolidated balance
sheet.
|
(i) |
Collateral
|
(ii) |
Derivatives
|
(iii) |
Credit-related
commitments
|
(b) |
The
table below shows the maximum exposure to credit risk for the components
of the consolidated balance sheet, including derivatives at fair
value as
of December 31, 2007 and 2006. The maximum exposure is shown gross,
before
the effect of mitigation through any
collateral:
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Assets
|
|||||||
Cash
and due from banks
|
3,073,865
|
2,733,530
|
|||||
Trading
securities
|
50,995
|
45,136
|
|||||
Investments
available-for-sale
|
5,228,641
|
3,450,711
|
|||||
Loans,
net
|
8,039,500
|
5,736,823
|
|||||
Financial
assets designated at fair value through profit and loss
|
213,153
|
53,116
|
|||||
Premiums
and other policies receivable
|
85,495
|
61,279
|
|||||
Accounts
receivable from re-insurers and
co-insurers
|
116,141
|
35,181
|
|||||
Due
from customers on acceptances
|
35,901
|
45,129
|
|||||
Other
assets, note 13
|
197,668
|
117,764
|
|||||
17,041,359
|
12,278,669
|
||||||
Off-balance
instruments
|
|||||||
Contingent
credits
|
1,564,525
|
1,455,376
|
|||||
Total
|
18,605,884
|
13,734,045
|
- |
97
percent of the loans portfolio is categorized in the top two grades
of the
internal rating system as of December 31, 2007 (96 percent as of
December
31, 2006);
|
- |
94
percent of the loan portfolio is considered to be neither past due
nor
impaired as of December 31, 2007 (93 percent as of December 31,
2006);
|
- |
75
percent of the investments have at least investment grade credit
rating
(BBB- or higher) or are debt securities issued by Banco Central de
Reserva
del Peru - BCRP (not rated) as of December 31, 2007 (74 percent as
of
December 31, 2006); and
|
- |
18
percent and 59 percent of the cash and due from banks represent amounts
deposited in the vaults of the Group and in the Peruvian Central
Bank
(included overnight operations), respectively, as of December 31,
2007 (17
percent and 52 percent, respectively, as of December 31,
2006).
|
(c) |
Credit
risk management for loans -
|
- |
Individually
assessed allowance -
|
- |
Collectively
assessed allowance -
|
As of December 31, 2007
|
||||||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
%
|
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||||||
Neither
past due nor impaired -
|
||||||||||||||||
Normal
|
5,517,220
|
1,138,912
|
779,866
|
7,435,998
|
91
|
|||||||||||
Potential
problem
|
347,186
|
13,781
|
7,463
|
368,430
|
5
|
|||||||||||
Past
due but not impaired -
|
||||||||||||||||
Normal
|
204,766
|
70,738
|
52,379
|
327,883
|
4
|
|||||||||||
Potential
problem
|
5,410
|
318
|
134
|
5,862
|
-
|
|||||||||||
Impaired
-
|
||||||||||||||||
Substandard
|
49,535
|
10,097
|
11,733
|
71,365
|
1
|
|||||||||||
Doubtful
|
61,578
|
12,552
|
14,586
|
88,716
|
1
|
|||||||||||
Loss
|
36,483
|
7,437
|
8,643
|
52,563
|
1
|
|||||||||||
Gross
|
6,222,178
|
1,253,835
|
874,804
|
8,350,817
|
103
|
|||||||||||
Less:
Allowance for loan losses
|
166,203
|
14,454
|
30,662
|
211,319
|
3
|
|||||||||||
Total,
net
|
6,055,975
|
1,239,381
|
844,142
|
8,139,498
|
100
|
As of December 31, 2006
|
||||||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
%
|
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||||||
Neither
past due nor impaired -
|
||||||||||||||||
Normal
|
3,810,556
|
914,604
|
491,125
|
5,216,285
|
90
|
|||||||||||
Potential
problem
|
337,775
|
11,766
|
3,386
|
352,927
|
6
|
|||||||||||
Past
due but not impaired -
|
||||||||||||||||
Normal
|
114,981
|
20,480
|
8,779
|
144,240
|
3
|
|||||||||||
Potential
problem
|
2,005
|
5,414
|
819
|
8,238
|
-
|
|||||||||||
Impaired
-
|
||||||||||||||||
Substandard
|
52,684
|
7,622
|
5,270
|
65,576
|
1
|
|||||||||||
Doubtful
|
98,110
|
14,193
|
9,814
|
122,117
|
2
|
|||||||||||
Loss
|
49,726
|
7,194
|
4,974
|
61,894
|
1
|
|||||||||||
Gross
|
4,465,837
|
981,273
|
524,167
|
5,971,277
|
103
|
|||||||||||
Less:
Allowance for loan losses
|
163,066
|
9,253
|
17,959
|
190,278
|
3
|
|||||||||||
Total,
net
|
4,302,771
|
972,020
|
506,208
|
5,780,999
|
100
|
As of December 31, 2007
|
||||||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
%
|
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||||||
Loans
refinanced or restructured:
|
||||||||||||||||
Normal
|
6,584
|
331
|
75
|
6,990
|
35
|
|||||||||||
Potential
problems
|
12,661
|
32
|
10
|
12,703
|
65
|
|||||||||||
Total
|
19,245
|
363
|
85
|
19,693
|
100
|
As of December 31, 2006
|
||||||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
%
|
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
|||||||||||||
Loans
refinanced or restructured
|
||||||||||||||||
Normal
|
10,751
|
638
|
19
|
11,408
|
54
|
|||||||||||
Potential
problems
|
9,426
|
153
|
33
|
9,612
|
46
|
|||||||||||
Total
|
20,177
|
791
|
52
|
21,020
|
100
|
As of December 31, 2007
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Past
due up to 30 days
|
204,766
|
70,738
|
52,379
|
327,883
|
|||||||||
Past
due 31 - 60 days
|
5,398
|
243
|
131
|
5,772
|
|||||||||
Past
due 61 - 90 days
|
3
|
14
|
2
|
19
|
|||||||||
Past
due over 91 days
|
9
|
61
|
1
|
71
|
|||||||||
Total
|
210,176
|
71,056
|
52,513
|
333,745
|
As of December 31, 2006
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
Past
due up to 30 days
|
114,981
|
20,480
|
8,779
|
144,240
|
|||||||||
Past
due 31 - 60 days
|
1,755
|
5,306
|
771
|
7,832
|
|||||||||
Past
due 61 - 90 days
|
191
|
55
|
14
|
260
|
|||||||||
Past
due over 91 days
|
59
|
53
|
34
|
146
|
|||||||||
Total
|
116,986
|
25,894
|
9,598
|
152,478
|
As of December 31, 2007
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Impaired
loans
|
147,596
|
30,086
|
34,962
|
212,644
|
|||||||||
Fair
value of collateral
|
59,957
|
19,863
|
3,914
|
83,734
|
|||||||||
Allowance
for loan losses
|
72,793
|
6,238
|
20,173
|
99,204,
|
As of December 31, 2006
|
|||||||||||||
Commercial
loans
|
Residential
mortgage
loans
|
Consumer
loans
|
Total
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
Impaired
loans
|
200,520
|
29,009
|
20,058
|
249,587
|
|||||||||
Fair
value of collateral
|
85,550
|
21,654
|
2,447
|
109,651
|
|||||||||
Allowance
for loan losses
|
104,533
|
4,240
|
10,825
|
119,598
|
(d) |
Credit
risk management on investments in trading securities and
available-for-sale -
|
As of December 31, 2007
|
|||||||||||||||||||
Held-for-trading
|
Available-for-sale
|
Total
|
|||||||||||||||||
US$(000)
|
%
|
US$(000)
|
%
|
US$(000)
|
%
|
||||||||||||||
Instruments
rated in Peru
|
|||||||||||||||||||
AAA
|
271
|
0.5
|
285,661
|
5.5
|
285,932
|
5.4
|
|||||||||||||
AA-
to AA +
|
1,301
|
2.6
|
35,943
|
0.7
|
37,244
|
0.7
|
|||||||||||||
A-
to A+
|
149
|
0.3
|
13,306
|
0.3
|
13,455
|
0.3
|
|||||||||||||
BBB-
a BBB+
|
-
|
-
|
2,018
|
-
|
2,018
|
-
|
|||||||||||||
BB-
to BB+
|
-
|
-
|
2,214
|
-
|
2,214
|
-
|
|||||||||||||
Lower
than B-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Unrated
(*)
|
25,078
|
49.2
|
2,854,295
|
54.6
|
2,879,373
|
54.6
|
|||||||||||||
26,799
|
52.6
|
3,193,437
|
61.1
|
3,220,236
|
61.0
|
||||||||||||||
Instruments
rated abroad
|
|||||||||||||||||||
AAA
|
-
|
-
|
242,428
|
4.6
|
242,428
|
4.6
|
|||||||||||||
AA-
to AA +
|
-
|
-
|
132,907
|
2.5
|
132,907
|
2.5
|
|||||||||||||
A-
to A+
|
-
|
-
|
234,455
|
4.6
|
234,455
|
4.5
|
|||||||||||||
BBB-
a BBB+
|
19,336
|
37.8
|
584,549
|
11.2
|
603,885
|
11.4
|
|||||||||||||
BB-
to BB+
|
2,119
|
4.2
|
539,816
|
10.3
|
541,935
|
10.3
|
|||||||||||||
Lower
than B-
|
-
|
-
|
22,740
|
0.4
|
22,740
|
0.4
|
|||||||||||||
Unrated
(*)
|
2,741
|
5.4
|
278,309
|
5.3
|
281,050
|
5.3
|
|||||||||||||
24,196
|
47.4
|
2,035,204
|
38.9
|
2,059,400
|
39.0
|
||||||||||||||
Total
|
50,995
|
100.0
|
5,228,641
|
100.0
|
5,279,636
|
100.0
|
As of December 31, 2006
|
|||||||||||||||||||
Held-for-trading
|
Available-for-sale
|
Total
|
|||||||||||||||||
US$(000)
|
%
|
US$(000)
|
%
|
US$(000)
|
%
|
||||||||||||||
Instruments
rated in Peru
|
|||||||||||||||||||
AAA
|
2
|
-
|
213,142
|
6.2
|
213,144
|
6.1
|
|||||||||||||
AA
-to AA +
|
8,755
|
19.4
|
48,406
|
1.4
|
57,161
|
1.6
|
|||||||||||||
A
to A+
|
777
|
1.7
|
9,207
|
0.3
|
9,984
|
0.3
|
|||||||||||||
BBB-
to BBB
|
-
|
-
|
1,719
|
-
|
1,719
|
-
|
|||||||||||||
BB-
to BB+
|
-
|
-
|
2,679
|
0.1
|
2,679
|
0.1
|
|||||||||||||
Lower
than B-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Unrated
(*)
|
35,602
|
78.9
|
1,521,008
|
44.1
|
1,556,610
|
44.6
|
|||||||||||||
45,136
|
100.0
|
1,796,161
|
52.1
|
1,841,297
|
52.7
|
||||||||||||||
Instruments
rated abroad
|
|||||||||||||||||||
AAA
|
-
|
-
|
243,098
|
7.0
|
243,098
|
7.0
|
|||||||||||||
AA-
to AA +
|
-
|
-
|
90,274
|
2.6
|
90,274
|
2.6
|
|||||||||||||
A
to A+
|
-
|
-
|
268,555
|
7.8
|
268,555
|
7.7
|
|||||||||||||
BBB-
to BBB+
|
-
|
-
|
412,055
|
11.9
|
412,055
|
11.8
|
|||||||||||||
BB-
a BB+
|
-
|
-
|
420,948
|
12.2
|
420,948
|
12.0
|
|||||||||||||
Lower
than BB-
|
-
|
-
|
16,672
|
0.5
|
16,672
|
0.4
|
|||||||||||||
Unrated
(*)
|
-
|
-
|
202,948
|
5.9
|
202,948
|
5.8
|
|||||||||||||
|
-
|
-
|
1,654,550
|
47.9
|
1,654,550
|
47.3
|
|||||||||||||
Total
|
45,136
|
100.0
|
3,450,711
|
100.0
|
3,495,847
|
100.0
|
(*) |
As
of December 31, 2007, include principally US$2,407.0 million, US$346.1
million and US$193.4 million of debt securities issued by Banco Central
de
Reserva del Perú - BCRP (which is a Peruvian Government entity not rated),
listed and non-listed equity securities and mutual funds, respectively
(US$1,277.6 million, US$250.9 million and US$96.5 million as of December
31, 2006, respectively).
|
2007
|
2006
|
||||||
%
|
%
|
||||||
Quoted
Market Price
|
39.4
|
47.0
|
|||||
Valuation
Techniques - market observable inputs
|
58.6
|
51.4
|
|||||
Valuation
Techniques - non-market observable inputs
|
2.0
|
1.6
|
|||||
Total
|
100.0
|
100.0
|
(e)
|
Concentration
of financial instruments exposed to credit
risk:
|
2007
|
2006
|
||||||||||||||||||||||||||||||
Designated at fair value through
profit and loss
|
Designated at fair value through
profit and loss
|
||||||||||||||||||||||||||||||
Held for
trading
|
At inception
|
Loans and
receivables
|
Available for
sale securities
|
Total
|
Held for
trading
|
At inception
|
Loans and
receivables
|
Available for
sale securities
|
Total
|
||||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||
Financial
services
|
49,901
|
213,153
|
3,303,821
|
3,569,312
|
7,136,187
|
1,742
|
53,116
|
2,909,132
|
1,166,944
|
4,130,934
|
|||||||||||||||||||||
Manufacturing
|
2,710
|
-
|
2,134,497
|
199,874
|
2,337,081
|
-
|
-
|
1,585,646
|
-
|
1,585,646
|
|||||||||||||||||||||
Mortgage
loans
|
-
|
-
|
1,079,955
|
-
|
1,079,955
|
-
|
-
|
849,037
|
-
|
849,037
|
|||||||||||||||||||||
Commerce
|
520
|
-
|
861,701
|
62,011
|
924,232
|
227
|
-
|
667,895
|
33,973
|
702,095
|
|||||||||||||||||||||
Public
Administration and defense
|
22,161
|
-
|
73,533
|
746,634
|
842,328
|
19,134
|
-
|
-
|
1,454,193
|
1,473,327
|
|||||||||||||||||||||
Consumer
loans
|
-
|
-
|
833,505
|
-
|
833,505
|
-
|
-
|
517,911
|
-
|
517,911
|
|||||||||||||||||||||
Mining
|
11,737
|
-
|
448,570
|
138,578
|
598,885
|
12,189
|
-
|
293,416
|
28,470
|
334,075
|
|||||||||||||||||||||
Electricity,
gas and water
|
9,802
|
-
|
330,480
|
207,014
|
547,296
|
6,801
|
-
|
250,819
|
116,965
|
374,585
|
|||||||||||||||||||||
Leaseholds
and real estate activities
|
-
|
-
|
373,659
|
159,063
|
532,722
|
-
|
-
|
227,347
|
22,213
|
249,560
|
|||||||||||||||||||||
Communications,
storage and transportation
|
-
|
-
|
387,911
|
97,945
|
485,856
|
247
|
-
|
249,597
|
98,685
|
348,529
|
|||||||||||||||||||||
Micro-business
loans
|
-
|
-
|
474,968
|
-
|
474,968
|
-
|
-
|
15,099
|
-
|
15,099
|
|||||||||||||||||||||
Community
Services
|
-
|
-
|
239,947
|
-
|
239,947
|
-
|
-
|
167,711
|
-
|
167,711
|
|||||||||||||||||||||
Construction
|
-
|
-
|
197,257
|
3,914
|
201,171
|
-
|
-
|
76,352
|
17,038
|
93,390
|
|||||||||||||||||||||
Agriculture
|
-
|
-
|
172,817
|
5,550
|
178,367
|
-
|
-
|
144,130
|
-
|
144,130
|
|||||||||||||||||||||
Fishing
|
-
|
-
|
131,483
|
-
|
131,483
|
-
|
-
|
148,919
|
-
|
148,919
|
|||||||||||||||||||||
Insurance
activities
|
-
|
-
|
122,667
|
-
|
122,667
|
-
|
-
|
53,647
|
42,853
|
96,500
|
|||||||||||||||||||||
Education,
health and other services
|
-
|
-
|
102,456
|
4,514
|
106,970
|
2,517
|
-
|
-
|
1,510
|
4,027
|
|||||||||||||||||||||
Other
|
7
|
-
|
233,500
|
34,232
|
267,739
|
21,413
|
-
|
553,914
|
467,867
|
1,043,194
|
|||||||||||||||||||||
Total
|
96,838
|
213,153
|
11,502,727
|
5,228,641
|
17,041,359
|
64,270
|
53,116
|
8,710,572
|
3,450,711
|
12,278,669
|
2007
|
||||||||||||||||
Designated at fair value through
profit and loss
|
||||||||||||||||
Held for
trading
|
At inception
|
Loans and
receivables
|
Available for
sale securities
|
Total
|
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||
Peru
|
70,189
|
-
|
10,048,500
|
3,693,246
|
13,811,935
|
|||||||||||
United
States of America
|
49
|
213,153
|
591,202
|
889,421
|
1,693,825
|
|||||||||||
Panama
|
-
|
-
|
10,831
|
4,661
|
15,492
|
|||||||||||
Germany
|
-
|
-
|
6,868
|
3,756
|
10,624
|
|||||||||||
Canada
|
151
|
-
|
24,358
|
8,788
|
33,297
|
|||||||||||
Bolivia
|
3,683
|
-
|
578,436
|
192,896
|
775,015
|
|||||||||||
Spain
|
36
|
-
|
13,456
|
1,541
|
15,033
|
|||||||||||
Venezuela
|
-
|
-
|
1,189
|
34,273
|
35,462
|
|||||||||||
Gran
Cayman
|
-
|
-
|
-
|
21,017
|
21,017
|
|||||||||||
Chile
|
-
|
-
|
5,178
|
124,557
|
129,735
|
|||||||||||
Netherlands
|
-
|
-
|
34,246
|
18,726
|
52,972
|
|||||||||||
United
Kingdom
|
13,654
|
-
|
38,571
|
31,041
|
83,266
|
|||||||||||
Colombia
|
-
|
-
|
59,471
|
89,363
|
148,834
|
|||||||||||
Brasil
|
-
|
-
|
2,204
|
36,130
|
38,334
|
|||||||||||
Mexico
|
-
|
-
|
4,930
|
34,976
|
39,906
|
|||||||||||
Ecuador
|
-
|
-
|
19,518
|
-
|
19,518
|
|||||||||||
Republic
of Salvador
|
-
|
-
|
602
|
11,168
|
11,770
|
|||||||||||
Other
|
9,076
|
-
|
63,167
|
33,081
|
105,324
|
|||||||||||
Total
|
96,838
|
213,153
|
11,502,727
|
5,228,641
|
17,041,359
|
2006
|
||||||||||||||||
Designated at fair value through
profit and loss
|
||||||||||||||||
Held for
trading
|
At inception
|
Loans and
receivables
|
Available for
sale securities
|
Total
|
||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||
Peru
|
31,714
|
-
|
7,331,086
|
1,993,424
|
9,356,224
|
|||||||||||
United
States of America
|
21,447
|
53,116
|
617,338
|
823,900
|
1,515,801
|
|||||||||||
Panama
|
-
|
-
|
32,961
|
7,291
|
40,252
|
|||||||||||
Germany
|
-
|
-
|
2,466
|
-
|
2,466
|
|||||||||||
Canada
|
-
|
-
|
5,764
|
-
|
5,764
|
|||||||||||
Bolivia
|
3,432
|
-
|
491,735
|
152,083
|
647,250
|
|||||||||||
Spain
|
-
|
-
|
13,269
|
27
|
13,296
|
|||||||||||
Venezuela
|
-
|
-
|
45,161
|
56,983
|
102,144
|
|||||||||||
Gran
Cayman
|
-
|
-
|
14,602
|
-
|
14,602
|
|||||||||||
Chile
|
-
|
-
|
8,515
|
109,136
|
117,651
|
|||||||||||
Honduras
|
-
|
-
|
7,284
|
-
|
7,284
|
|||||||||||
Netherlands
|
-
|
-
|
-
|
8,283
|
8,283
|
|||||||||||
United
Kingdom
|
1
|
-
|
6,188
|
34,195
|
40,384
|
|||||||||||
Colombia
|
-
|
-
|
35,495
|
73,662
|
109,157
|
|||||||||||
Brasil
|
-
|
-
|
3,411
|
-
|
3,411
|
|||||||||||
Mexico
|
-
|
-
|
616
|
45,613
|
46,229
|
|||||||||||
Ecuador
|
-
|
-
|
14,960
|
-
|
14,960
|
|||||||||||
Republic
of Salvador
|
-
|
-
|
13,690
|
14,134
|
27,824
|
|||||||||||
Other
|
7,676
|
-
|
66,031
|
131,980
|
205,687
|
|||||||||||
Total
|
64,270
|
53,116
|
8,710,572
|
3,450,711
|
12,278,669
|
31.2 |
Market
risk
-
|
(a) |
Trading
Book
-
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Equity
securities
|
5,211
|
5,196
|
|||||
Fixed
Income
|
567
|
2
|
|||||
Derivatives
|
626
|
1,012
|
|||||
Consolidated
VaR by type of asset
|
5,261
|
5,659
|
2007
|
2006
|
||||||
US$(000)
|
US$(000)
|
||||||
Foreign
exchange risk
|
133
|
1,928
|
|||||
Interest
rate risk
|
514
|
78
|
|||||
Equity
risk
|
4,879
|
4,765
|
|||||
Consolidated
VaR by risk type
|
5,261
|
5,659
|
(b) |
ALM
Book -
|
(i) |
Interest
risk -
|
As of December 31, 2007
|
||||||||||||||||||||||
Up to 1 month
|
1 to 3 months
|
3 to 12 months
|
1 to 5 years
|
More than 5
years
|
Non-interest
bearing
|
Total
|
||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||
Assets
|
||||||||||||||||||||||
Cash
and due from banks
|
2,331,637
|
31,074
|
48,172
|
42,045
|
19
|
620,918
|
3,073,865
|
|||||||||||||||
Investments
|
567,613
|
680,272
|
1,974,368
|
837,269
|
842,317
|
377,797
|
5,279,636
|
|||||||||||||||
Loans
|
2,078,657
|
2,294,056
|
1,499,311
|
2,051,629
|
115,847
|
-
|
8,039,500
|
|||||||||||||||
Assets
designated at fair value through profit and loss
|
-
|
-
|
50,561
|
-
|
-
|
162,592
|
213,153
|
|||||||||||||||
Premiums
and other policies receivables
|
-
|
-
|
-
|
-
|
-
|
85,495
|
85,495
|
|||||||||||||||
Accounts
receivable from re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
116,141
|
116,141
|
|||||||||||||||
Other
assets
|
-
|
-
|
-
|
-
|
-
|
898,108
|
898,108
|
|||||||||||||||
Total
assets
|
4,977,907
|
3,005,402
|
3,572,412
|
2,930,943
|
958,183
|
2,261,051
|
17,705,898
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||||
Deposits
and obligations
|
3,358,599
|
3,089,841
|
1,709,965
|
263,913
|
2,088
|
2,926,308
|
11,350,714
|
|||||||||||||||
Financial
liabilities designated at fair value through profit and loss
|
-
|
-
|
50,561
|
-
|
-
|
-
|
50,561
|
|||||||||||||||
Due
to banks and correspondents
|
484,560
|
437,345
|
303,506
|
198,357
|
21,296
|
8,197
|
1,453,261
|
|||||||||||||||
Accounts
payable to re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
21,914
|
21,914
|
|||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
1,626
|
4,878
|
14,634
|
95,017
|
305,039
|
394,333
|
815,527
|
|||||||||||||||
Borrowed
funds
|
-
|
870,404
|
-
|
-
|
-
|
-
|
870,404
|
|||||||||||||||
Bonds
and subordinated notes issued
|
101,521
|
34,520
|
54,546
|
176,924
|
328,147
|
6,640
|
702,298
|
|||||||||||||||
Other
liabilities
|
-
|
-
|
8,275
|
-
|
-
|
617,671
|
625,946
|
|||||||||||||||
Equity
|
-
|
-
|
-
|
-
|
-
|
1,815,273
|
1,815,273
|
|||||||||||||||
Total
liabilities and equity
|
3,946,306
|
4,436,988
|
2,141,487
|
734,211
|
656,570
|
5,790,336
|
17,705,898
|
|||||||||||||||
Off-Balance
sheet items
|
||||||||||||||||||||||
Derivatives
assets
|
1,746,686
|
724,850
|
719,635
|
349,552
|
116,269
|
-
|
3,656,992
|
|||||||||||||||
Derivatives
liabilities
|
967,415
|
617,771
|
801,599
|
806,626
|
463,581
|
-
|
3,656,992
|
|||||||||||||||
779,271
|
107,079
|
(81,964
|
)
|
(457,074
|
)
|
(347,312
|
)
|
-
|
-
|
|||||||||||||
Marginal
gap
|
1,810,872
|
(1,324,507
|
)
|
1,348,961
|
1,739,658
|
(45,699
|
)
|
(3,529,285
|
)
|
-
|
||||||||||||
Accumulated
gap
|
1,810,872
|
486,365
|
1,835,326
|
3,574,984
|
3,529,285
|
-
|
-
|
As of December 31, 2006
|
||||||||||||||||||||||
Up to 1 month
|
1 to 3 months
|
3 to 12 months
|
1 to 5 years
|
More than 5
years
|
Non-interest
bearing
|
Total
|
||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||
Assets
|
||||||||||||||||||||||
Cash
and due from banks
|
1,068,748
|
8,775
|
1,181,148
|
-
|
-
|
474,859
|
2,733,530
|
|||||||||||||||
Investments
|
402,925
|
532,586
|
1,055,645
|
626,422
|
749,667
|
128,602
|
3,495,847
|
|||||||||||||||
Loans
|
1,624,343
|
1,325,556
|
1,431,177
|
1,023,526
|
296,140
|
36,081
|
5,736,823
|
|||||||||||||||
Assets
designated at fair value through profit and loss
|
-
|
-
|
-
|
-
|
-
|
53,116
|
53,116
|
|||||||||||||||
Premiums
and other policies receivables
|
-
|
-
|
-
|
-
|
-
|
61,279
|
61,279
|
|||||||||||||||
Accounts
receivable from re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
35,181
|
35,181
|
|||||||||||||||
Other
assets
|
-
|
-
|
-
|
-
|
-
|
765,753
|
765,753
|
|||||||||||||||
Total
assets
|
3,096,016
|
1,866,917
|
3,667,970
|
1,649,948
|
1,045,807
|
1,554,871
|
12,881,529
|
|||||||||||||||
Deposits
and obligations
|
2,429,405
|
2,204,614
|
1,763,756
|
275,260
|
176,392
|
1,989,564
|
8,838,991
|
|||||||||||||||
Due
to banks and correspondents
|
292,805
|
45,799
|
47,275
|
84,922
|
98,335
|
1,853
|
570,989
|
|||||||||||||||
Accounts
payable to re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
25,134
|
25,134
|
|||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
2,149
|
4,298
|
19,341
|
78,611
|
274,741
|
249,081
|
628,221
|
|||||||||||||||
Borrowed
funds
|
-
|
370,612
|
-
|
-
|
-
|
-
|
370,612
|
|||||||||||||||
Bonds
and subordinated notes issued
|
43,044
|
-
|
83,957
|
363,201
|
22,370
|
-
|
512,572
|
|||||||||||||||
Other
liabilities
|
-
|
-
|
-
|
-
|
401,242
|
401,242
|
||||||||||||||||
Equity
|
-
|
-
|
-
|
-
|
-
|
1,533,768
|
1,533,768
|
|||||||||||||||
Total
liabilities and equity
|
2,767,403
|
2,625,323
|
1,914,329
|
801,994
|
571,838
|
4,200,642
|
12,881,529
|
|||||||||||||||
Off-Balance
sheet items
|
||||||||||||||||||||||
Derivatives
assets
|
981,884
|
308,913
|
332,171
|
59,708
|
13,557
|
-
|
1,696,233
|
|||||||||||||||
Derivatives
liabilities
|
720,056
|
176,447
|
335,506
|
379,779
|
84,445
|
-
|
1,696,233
|
|||||||||||||||
261,828
|
132,466
|
(3,335
|
)
|
(320,071
|
)
|
(70,888
|
)
|
-
|
-
|
|||||||||||||
Marginal
gap
|
590,441
|
(625,940
|
)
|
1,750,306
|
527,883
|
403,081
|
(2,645,771
|
)
|
-
|
|||||||||||||
Accumulated
gap
|
590,441
|
(35,499
|
)
|
1,714,807
|
2,242,690
|
2,645,771
|
-
|
-
|
As of December 31, 2007
|
|||||||||||||||||||
Currency
|
Changes in basis
points
|
Sensitivity of net
income
|
Sensitivity of Equity
|
||||||||||||||||
US$(000)
|
US$(000)
|
||||||||||||||||||
U.S. Dollar
|
+/-
|
50
|
+/-
|
7,652
|
-/+
|
20,205
|
|||||||||||||
U.S.
Dollar
|
+/-
|
75
|
+/-
|
11,479
|
-/+
|
30,307
|
|||||||||||||
U.S.
Dollar
|
+/-
|
100
|
+/-
|
15,305
|
-/+
|
40,408
|
|||||||||||||
U.S.
Dollar
|
+/-
|
150
|
+/-
|
22,957
|
-/+
|
60,613
|
|||||||||||||
Peruvian
Currency
|
+/-
|
50
|
-/+
|
2,966
|
-/+
|
20,705
|
|||||||||||||
Peruvian
Currency
|
+/-
|
75
|
-/+
|
4,448
|
-/+
|
31,056
|
|||||||||||||
Peruvian
Currency
|
+/-
|
100
|
-/+
|
5,932
|
-/+
|
41,409
|
|||||||||||||
Peruvian
Currency
|
+/-
|
150
|
-/+
|
8,897
|
-/+
|
62,114
|
As of December 31, 2006
|
|||||||||||||||||||
Currency
|
Changes in basis
points
|
Sensitivity of net
income
|
Sensitivity of Equity
|
||||||||||||||||
US$(000)
|
US$(000)
|
||||||||||||||||||
U.S.
Dollar
|
+/-
|
50
|
+/-
|
5,598
|
-/+
|
31,278
|
|||||||||||||
U.S.
Dollar
|
+/-
|
75
|
+/-
|
8,398
|
-/+
|
46,918
|
|||||||||||||
U.S.
Dollar
|
+/-
|
100
|
+/-
|
11,198
|
-/+
|
62,557
|
|||||||||||||
U.S.
Dollar
|
+/-
|
150
|
+/-
|
16,795
|
-/+
|
93,835
|
|||||||||||||
Peruvian
Currency
|
+/-
|
50
|
-/+
|
494
|
-/+
|
12,461
|
|||||||||||||
Peruvian
Currency
|
+/-
|
75
|
-/+
|
741
|
-/+
|
18,691
|
|||||||||||||
Peruvian
Currency
|
+/-
|
100
|
-/+
|
987
|
-/+
|
24,921
|
|||||||||||||
Peruvian
Currency
|
+/-
|
150
|
-/+
|
1,481
|
-/+
|
37,862
|
Market price sensitivity
|
Changes in
market prices
|
As of December 31,
2007
|
As of December 31,
2006
|
||||||||||||||||
%
|
US$(000)
|
US$(000)
|
|||||||||||||||||
Equity
securities
|
+/-
|
10
|
+/-
|
32,088
|
+/-
|
21,557
|
|||||||||||||
Equity
securities
|
+/-
|
15
|
+/-
|
48,132
|
+/-
|
32,335
|
|||||||||||||
Mutual
funds
|
+/-
|
10
|
+/-
|
20,008
|
+/-
|
9,624
|
|||||||||||||
Mutual
funds
|
+/-
|
15
|
+/-
|
30,013
|
+/-
|
14,436
|
(ii) |
Foreign
exchange risk -
|
2007
|
2006
|
||||||||||||||||||||||||
U.S. Dollars
|
Peruvian
currency
|
Other
currencies
|
Total
|
U.S. Dollars
|
Peruvian
currency
|
Other
currencies
|
Total
|
||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||
Monetary
assets -
|
|||||||||||||||||||||||||
Cash
and due from banks
|
2,644,858
|
311,828
|
117,179
|
3,073,865
|
2,250,111
|
396,238
|
87,181
|
2,733,530
|
|||||||||||||||||
Trading
securities
|
38,647
|
11,463
|
885
|
50,995
|
14,144
|
30,800
|
192
|
45,136
|
|||||||||||||||||
Available-for-sale
investments
|
1,934,672
|
3,129,351
|
164,618
|
5,228,641
|
1,493,043
|
1,904,535
|
53,133
|
3,450,711
|
|||||||||||||||||
Loans,
net
|
5,555,864
|
2,450,297
|
33,339
|
8,039,500
|
4,181,558
|
1,492,681
|
62,584
|
5,736,823
|
|||||||||||||||||
Financial
assets designated to fair value through profit and loss
|
213,153
|
-
|
-
|
213,153
|
53,116
|
-
|
-
|
53,116
|
|||||||||||||||||
Other
assets
|
261,102
|
299,695
|
9,745
|
570,542
|
216,388
|
129,268
|
6,242
|
351,898
|
|||||||||||||||||
10,648,296
|
6,202,634
|
325,766
|
17,176,696
|
8,208,360
|
3,953,522
|
209,332
|
12,371,214
|
||||||||||||||||||
Monetary
liabilities -
|
|||||||||||||||||||||||||
Deposits
and obligations
|
(7,173,362
|
)
|
(3,892,138
|
)
|
(285,214
|
)
|
(11,350,714
|
)
|
(6,098,199
|
)
|
(2,588,864
|
)
|
(151,928
|
)
|
(8,838,991
|
)
|
|||||||||
Due
to bank and correspondents and borrowed funds
|
(2,071,882
|
)
|
(248,362
|
)
|
(3,421
|
)
|
(2,323,665
|
)
|
(883,979
|
)
|
(53,193
|
)
|
(4,429
|
)
|
(941,601
|
)
|
|||||||||
Financial
liabilities designated at fair value through profits and
loss
|
(50,561
|
)
|
-
|
-
|
(50,561
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||
Bonds
and subordinated notes issued
|
(329,567
|
)
|
(372,731
|
)
|
-
|
(702,298
|
)
|
(334,608
|
)
|
(177,964
|
)
|
-
|
(512,572
|
)
|
|||||||||||
Other
liabilities
|
(1,040,179
|
)
|
(434,353
|
)
|
11,144
|
(1,463,388
|
)
|
(662,946
|
)
|
(378,473
|
)
|
(13,178
|
)
|
(1,054,597
|
)
|
||||||||||
(10,665,551
|
)
|
(4,947,584
|
)
|
(277,491
|
)
|
(15,890,626
|
)
|
(7,979,732
|
)
|
(3,198,494
|
)
|
(169,535
|
)
|
(11,347,761
|
)
|
||||||||||
(17,255
|
)
|
1,255,050
|
48,275
|
1,286,070
|
228,628
|
755,028
|
39,797
|
1,023,453
|
|||||||||||||||||
Forwards
position, net
|
331,117
|
(273,971
|
)
|
(57,146
|
)
|
-
|
30,970
|
(22,368
|
)
|
(8,602
|
)
|
-
|
|||||||||||||
Net
monetary position
|
313,862
|
981,079
|
(8,871
|
)
|
1,286,070
|
259,598
|
732,660
|
31,195
|
1,023,453
|
Sensitivity Analysis
|
Change in
currency rates
|
2007
|
2006
|
|||||||
%
|
US$(000)
|
US$(000)
|
||||||||
Devaluation
-
|
||||||||||
Peruvian
Currency
|
5
|
(51,636
|
)
|
(38,561
|
)
|
|||||
Peruvian
Currency
|
10
|
(109,009
|
)
|
(81,407
|
)
|
|||||
Revaluation
-
|
||||||||||
Peruvian
Currency
|
5
|
46,718
|
34,889
|
|||||||
Peruvian
Currency
|
10
|
89,189
|
66,605
|
31.3 |
Liquidity
risk -
|
As of December 31, 2007
|
As of December 31, 2006
|
||||||||||||||||||||||||||||||||||||
Up to a month
|
From 1 to 3 months
|
From 3 to 12
months
|
From 1 to 5 years
|
Over 5
years
|
Total
|
Up to a
month
|
From 1 to 3 months
|
From 3 to 12
months
|
From 1 to 5 years
|
Over 5
years
|
Total
|
||||||||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||||||
Deposits
and obligations
|
3,509,461
|
1,785,348
|
3,914,794
|
2,602,403
|
298,750
|
12,110,756
|
2,301,949
|
1,331,413
|
3,076,991
|
2,081,960
|
279,408
|
9,071,721
|
|||||||||||||||||||||||||
Financials
liabilities designated at fair value through profit and
loss
|
266
|
534
|
2,448
|
65,063
|
-
|
68,311
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Due
to bank and correspondents and Borrowed funds
|
274,279
|
524,809
|
486,328
|
1,053,649
|
529,040
|
2,868,105
|
406,477
|
143,327
|
254,160
|
369,532
|
502,056
|
1,675,552
|
|||||||||||||||||||||||||
Accounts
payable to re-insurer and co-insurers
|
3,507
|
10,840
|
7,412
|
155
|
-
|
21,914
|
9,395
|
6,022
|
8,927
|
790
|
-
|
25,134
|
|||||||||||||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
77,047
|
100,991
|
184,769
|
165,095
|
558,301
|
1,086,203
|
168,181
|
13,169
|
60,065
|
128,492
|
510,284
|
880,191
|
|||||||||||||||||||||||||
Bonds
and subordinates notes issued
|
48,867
|
43,071
|
104,174
|
315,911
|
426,688
|
938,711
|
42,751
|
10,354
|
110,275
|
478,798
|
47,861
|
690,039
|
|||||||||||||||||||||||||
Other
liabilities
|
30,464
|
23,993
|
367,922
|
83,492
|
-
|
505,871
|
213,325
|
9,489
|
57,205
|
19,253
|
-
|
299,272
|
|||||||||||||||||||||||||
Total
liabilities
|
3,943,891
|
2,489,586
|
5,067,847
|
4,285,768
|
1,812,779
|
17,599,871
|
3,142,078
|
1,513,774
|
3,567,623
|
3,078,825
|
1,339,609
|
12,641,909
|
As of December 31, 2007
|
As of December 31, 2006
|
||||||||||||||||||||||||||||||||||||
Up to a
month
|
From 1 to 3
months
|
From 3 to 12
months
|
From 1 to 5
years
|
Over 5
years
|
Total
|
Up to a
month
|
From 1 to
3 months
|
From 1 to 12
months
|
From 1 to 5
years
|
Over 5
years
|
Total
|
||||||||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||||||
Contingent
credits
|
318,692
|
253,054
|
571,702
|
402,443
|
18,634
|
1,564,525
|
200,256
|
268,490
|
467,405
|
468,836
|
50,389
|
1,455,376
|
31.4 |
Operational
risk -
|
31.5 |
Risk
of the insurance activity
-
|
- |
Mortality
/ Longevity risk - risk of loss arising due to policyholder death
experience being different than
expected.
|
- |
Morbidity
risk - risk of loss arising due to policyholder health experience
being
different than expected.
|
- |
Investment
return risk - risk of loss arising from actual returns being different
than expected.
|
- |
Expense
risk - risk of loss arising from expense experience being different
than
expected.
|
- |
Policyholder
decision risk - risk of loss arising due to policyholder experiences
(lapses and surrenders) being different than expected.
|
(a) |
Interest
risk of the insurance activity -
|
As of December 31, 2007
|
||||||||||||||||||||||
Up to 1
month
|
1 to 3
months
|
3 to 12
months
|
1 to 5 years
|
More than 5
years
|
Non-interest
bearing
|
Total
|
||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||
Assets
|
||||||||||||||||||||||
Cash
and due from banks
|
16,520
|
-
|
-
|
-
|
-
|
4,354
|
20,874
|
|||||||||||||||
Investments
|
4,295
|
10,847
|
11,630
|
96,207
|
513,714
|
159,755
|
796,448
|
|||||||||||||||
Premiums
and other policies receivables
|
-
|
-
|
-
|
-
|
-
|
85,495
|
85,495
|
|||||||||||||||
Accounts
receivable from re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
116,141
|
116,141
|
|||||||||||||||
Other
assets
|
-
|
-
|
-
|
-
|
-
|
119,503
|
119,503
|
|||||||||||||||
Total
assets
|
20,815
|
10,847
|
11,630
|
96,207
|
513,714
|
485,248
|
1,138,461
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||||
Due
to banks and correspondents
|
2,964
|
-
|
-
|
-
|
-
|
9
|
2,973
|
|||||||||||||||
Accounts
payable to re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
21,914
|
21,914
|
|||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
1,626
|
4,878
|
14,634
|
95,017
|
305,039
|
394,333
|
815,527
|
|||||||||||||||
Other
liabilities
|
-
|
-
|
-
|
-
|
-
|
32,869
|
32,869
|
|||||||||||||||
Equity
|
-
|
-
|
-
|
-
|
-
|
265,178
|
265,178
|
|||||||||||||||
Total
liabilities and equity
|
4,590
|
4,878
|
14,634
|
95,017
|
305,039
|
714,303
|
1,138,461
|
|||||||||||||||
Marginal
gap
|
16,225
|
5,969
|
(3,004
|
)
|
1,190
|
208,675
|
(229,055
|
)
|
-
|
|||||||||||||
Accumulated
gap
|
16,225
|
22,194
|
19,190
|
20,380
|
229,055
|
-
|
-
|
As of December 31, 2006
|
||||||||||||||||||||||
Up to 1
month
|
1 to 3
months
|
3 to 12
months
|
1 to 5 years
|
More than 5
years
|
Non-interest
bearing
|
Total
|
||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||
Assets
|
||||||||||||||||||||||
Cash
and due from banks
|
18,464
|
-
|
-
|
-
|
-
|
59,548
|
78,012
|
|||||||||||||||
Investments
|
3,439
|
15,856
|
44,392
|
102,051
|
411,725
|
143,823
|
721,286
|
|||||||||||||||
Premiums
and other policies receivables
|
-
|
-
|
-
|
-
|
-
|
61,279
|
61,279
|
|||||||||||||||
Accounts
receivable from re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
35,181
|
35,181
|
|||||||||||||||
Other
assets
|
-
|
-
|
-
|
-
|
-
|
93,629
|
93,629
|
|||||||||||||||
Total
assets
|
21,903
|
15,856
|
44,392
|
102,051
|
411,725
|
393,460
|
989,387
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||||
Accounts
payable to re-insurers and co-insurers
|
-
|
-
|
-
|
-
|
-
|
25,134
|
25,134
|
|||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
2,149
|
4,298
|
19,341
|
78,611
|
274,741
|
249,081
|
628,221
|
|||||||||||||||
Other
liabilities
|
-
|
-
|
-
|
-
|
-
|
46,104
|
46,104
|
|||||||||||||||
Equity
|
-
|
-
|
-
|
-
|
-
|
289,928
|
289,928
|
|||||||||||||||
Total
liabilities and equity
|
2,149
|
4,298
|
19,341
|
78,611
|
274,741
|
610,247
|
989,387
|
|||||||||||||||
Marginal
gap
|
19,754
|
11,558
|
25,051
|
23,440
|
136,984
|
(216,787
|
)
|
-
|
||||||||||||||
Accumulated
gap
|
19,754
|
31,312
|
56,363
|
79,803
|
216,787
|
-
|
-
|
As
of December 31, 2007
|
|||||||||||||||||||
Currency
|
Changes in basis
points
|
Sensitivity of net
income
|
Sensitivity of Equity
|
||||||||||||||||
US$(000)
|
US$(000)
|
||||||||||||||||||
U.S.
Dollar
|
+/-
|
50
|
-/+
|
129
|
-/+
|
9,883
|
|||||||||||||
U.S.
Dollar
|
+/-
|
75
|
-/+
|
194
|
-/+
|
14,824
|
|||||||||||||
U.S.
Dollar
|
+/-
|
100
|
-/+
|
259
|
-/+
|
19,766
|
|||||||||||||
U.S.
Dollar
|
+/-
|
150
|
-/+
|
388
|
-/+
|
29,649
|
|||||||||||||
Peruvian
Currency
|
+/-
|
50
|
+/-
|
50
|
-/+
|
1,533
|
|||||||||||||
Peruvian
Currency
|
+/-
|
75
|
+/-
|
75
|
-/+
|
2,300
|
|||||||||||||
Peruvian
Currency
|
+/-
|
100
|
+/-
|
101
|
-/+
|
3,066
|
|||||||||||||
Peruvian
Currency
|
+/-
|
150
|
+/-
|
151
|
-/+
|
4,599
|
As
of December 31, 2006
|
|||||||||||||||||||
Currency
|
Changes
in basis
points
|
Sensitivity
of net
income
|
Sensitivity
of Equity
|
||||||||||||||||
US$(000)
|
US$(000)
|
||||||||||||||||||
U.S.
Dollar
|
+/-
|
50
|
-/+
|
694
|
-/+
|
9,863
|
|||||||||||||
U.S.
Dollar
|
+/-
|
75
|
-/+
|
1,040
|
-/+
|
14,794
|
|||||||||||||
U.S.
Dollar
|
+/-
|
100
|
-/+
|
1,387
|
-/+
|
19,726
|
|||||||||||||
U.S.
Dollar
|
+/-
|
150
|
-/+
|
2,081
|
-/+
|
29,589
|
|||||||||||||
Peruvian
Currency
|
+/-
|
50
|
-/+
|
26
|
-/+
|
1,367
|
|||||||||||||
Peruvian
Currency
|
+/-
|
75
|
-/+
|
38
|
-/+
|
2,051
|
|||||||||||||
Peruvian
Currency
|
+/-
|
100
|
-/+
|
51
|
-/+
|
2,735
|
|||||||||||||
Peruvian
Currency
|
+/-
|
150
|
-/+
|
77
|
-/+
|
4,102
|
(b) |
Foreign
exchange risk of the insurance activity
-
|
2007
|
||||||||||
U.S.
Dollars
|
Peruvian
Currency
|
Total
|
||||||||
US$(000)
|
US$(000)
|
US$(000)
|
||||||||
Monetary
assets
|
800,899
|
259,279
|
1,060,178
|
|||||||
Monetary
liabilities
|
(636,170
|
)
|
(211,013
|
)
|
(847,183
|
)
|
||||
Net
monetary position
|
164,729
|
48,266
|
212,995
|
|||||||
2006
|
||||||||||
|
U.S.
Dollars
|
Peruvian
Currency
|
Total
|
|||||||
|
US$(000)
|
|
US$(000)
|
|
|
US$(000)
|
|
|||
Monetary
assets
|
592,875
|
324,363
|
917,237
|
|||||||
Monetary
liabilities
|
(483,995
|
)
|
(199,777
|
)
|
(683,772
|
)
|
||||
Net
monetary position
|
108,880
|
124,585
|
233,465
|
Sensitivity
Analysis
|
Change in
currency rates
|
2007
|
2006
|
|||||||
% |
US$(000)
|
US$(000)
|
||||||||
Devaluation
-
|
||||||||||
Peruvian
Currency
|
5
|
(2,540
|
)
|
(6,557
|
)
|
|||||
Peruvian
Currency
|
10
|
(5,363
|
)
|
(13,843
|
)
|
|||||
Revaluation
-
|
||||||||||
Peruvian
Currency
|
5
|
2,298
|
5,933
|
|||||||
Peruvian
Currency
|
10
|
4,388
|
11,326
|
(c) |
Liquidity
risk of the insurance activity -
|
As
of December 31, 2007
|
As
of December 31, 2006
|
||||||||||||||||||||||||||||||||||||
_____________________________________________________________________________________
|
_____________________________________________________________________________________
|
||||||||||||||||||||||||||||||||||||
Up
to a month
|
From
1 to 3 months
|
From
3 to 12 months
|
From
1 to 5 years
|
Over
5 years
|
Total
|
Up
to a month
|
From
1 to 3 months
|
From
3 to 12 months
|
From
1 to 5 years
|
Over
5 years
|
Total
|
||||||||||||||||||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||||||||||||||||||
Due
to bank and correspondents and Borrowed funds
|
2,973
|
-
|
-
|
-
|
-
|
2,973
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Accounts
payable to re-insurer and co-insurers
|
3,507
|
10,840
|
7,412
|
155
|
-
|
21,914
|
9,395
|
6,022
|
8,927
|
790
|
-
|
25,134
|
|||||||||||||||||||||||||
Technical,
insurance claims reserves and reserves for unearned
premiums
|
77,047
|
100,991
|
184,769
|
165,095
|
558,301
|
1,086,203
|
168,181
|
13,169
|
60,065
|
128,492
|
510,284
|
880,191
|
|||||||||||||||||||||||||
Other
liabilities
|
9,974
|
7,594
|
847
|
280
|
-
|
18,695
|
31,772
|
440
|
546
|
-
|
-
|
32,758
|
|||||||||||||||||||||||||
Total
liabilities
|
93,501
|
119,425
|
193,028
|
165,530
|
558,301
|
1,129,785
|
209,348
|
19,631
|
69,538
|
129,282
|
510,284
|
938,083
|
(d) |
Credit
risk of the insurance activity -
|
- |
The
Group sets the maximum amounts and limits that may be advanced to
corporate counterparties by reference to their long- term credit
ratings.
|
- |
The
credit risk in respect of customer balances, incurred on non-payment
of
premiums or contributions will only persist during the grace period
specified in the policy document or trust deed until expiry, when
the
policy is either paid up or terminated. Commission paid to intermediaries
is netted off against amounts receivable from them to reduce the
risk of
doubtful debts.
|
- |
Reinsurance
is placed with counterparties that have a good credit rating and
concentration of risk is avoided by following policy guidelines in
respect
of counterparties’ limits that are set each year by the board of directors
and are subject to regular reviews. At each reporting date, management
performs an assessment of creditworthiness of reinsurers and updates
the
reinsurance purchase strategy, ascertaining suitable allowance for
impairment.
|
- |
A
Group policy setting out the assessment and determination of what
constitutes credit risk for the Group. Compliance with the policy
is
monitored and exposures and breaches are reported to the Group risk
committee. The policy is regularly reviewed for pertinence and for
changes
in the risk environment.
|
31.6 |
Capital
management
|
31.7 |
Fair
value
|
(a) |
Assets
for which fair value approximates carrying value - For financial
assets
and financial liabilities that are liquid or having a short term
maturity
(less than three months) it is assumed that the carrying amounts
approximate to their fair value. This assumption is also applied
to demand
deposits, savings accounts without a specific maturity and variable
rate
financial instruments.
|
(b) |
Fixed
rate financial instruments - The fair value of fixed rate financial
assets
and liabilities carried at amortized cost are estimated by comparing
market interest rates when they were first recognized with current
market
rates offered for similar financial instruments. The estimated fair
value
of fixed interest bearing deposits is based on discounted cash flows
using
prevailing money-market interest rates for debts with similar credit
risk
and maturity. For quoted debt issued the fair values are calculated
based
on quoted market prices. For those notes issued where quoted market
prices
are not available, a discounted cash flow model is used based on
a current
interest rate yield curve appropriate for the remaining term to
maturity.
|
(c) |
Financial
instrument recorded at fair value - The fair value for financial
instruments traded in active markets at the consolidated balance
sheets
dates is based on their quoted market price or dealer price quotations
(bid price for long positions and ask price for short positions),
without
any deduction for transaction costs. For all other financial instruments
not listed in an active market, the fair value is determined by using
appropriate valuation techniques. Valuation techniques include net
present
value techniques and comparison to similar instruments for which
market
observable prices exist.
|
2007
|
2006
|
||||||||||||
Book
value
|
Fair
value
|
Book
value
|
Fair
value
|
||||||||||
US$(000)
|
US$(000)
|
US$(000)
|
US$(000)
|
||||||||||
18.
|
19.
|
20.
|
21.
|
||||||||||
Assets
|
|
|
|
|
|||||||||
Cash
and due from banks
|
3,073,865
|
3,073,865
|
2,733,530
|
2,733,530
|
|||||||||
Trading
securities
|
50,995
|
50,995
|
45,136
|
45,136
|
|||||||||
Investments
available-for-sale
|
5,228,641
|
5,228,641
|
3,450,711
|
3,450,711
|
|||||||||
Loans,
net
|
8,039,500
|
8,056,106
|
5,736,823
|
5,731,285
|
|||||||||
Financial
assets designated at fair value through profit and loss
|
213,153
|
213,153
|
53,116
|
53,116
|
|||||||||
Premiums
and other policies receivable
|
85,495
|
85,495
|
61,279
|
61,279
|
|||||||||
Accounts
receivable from re-insurers
|
|
|
|
|
|||||||||
Accounts
receivable from re-insurers and co-insurers
|
116,141
|
116,141
|
35,181
|
35,181
|
|||||||||
Due
from customers on acceptances
|
35,901
|
35,901
|
45,129
|
45,129
|
|||||||||
Other
assets
|
197,668
|
197,668
|
117,764
|
117,764
|
|||||||||
|
|
|
|
|
|||||||||
Liabilities
|
|
|
|
|
|||||||||
Deposits
and obligation
|
11,350,714
|
11,350,714
|
8,838,991
|
8,838,991
|
|||||||||
Due
to banks and correspondents
|
1,453,261
|
1,453,185
|
570,989
|
571,248
|
|||||||||
Banker’s
acceptances outstanding
|
35,901
|
35,901
|
45,129
|
45,129
|
|||||||||
Accounts
payable to re-insurers and co-insurers
|
21,914
|
21,914
|
25,134
|
25,134
|
|||||||||
Financial
liabilities designated at fair value through profit and
loss
|
50,561
|
50,561
|
-
|
-
|
|||||||||
Borrowed
funds
|
870,404
|
870,404
|
370,612
|
370,612
|
|||||||||
Bonds
and subordinated notes issued
|
702,298
|
716,609
|
512,572
|
517,539
|
|||||||||
Other
liabilities
|
458,976
|
458,976
|
265,516
|
265,516
|
31.8 |
Fiduciary
activities and management of investment and pension funds
-
|
2007
|
2006
|
||||||
Investments
funds
|
1,768.8
|
1,124.2
|
|||||
Pension
Funds
|
5,939.0
|
4,163.4
|
|||||
Equity
managed
|
2,740.7
|
1,688.7
|
|||||
Total
|
10,448.5
|
6,976.3
|
1.1
|
Bye-laws
of Credicorp Ltd., incorporated herein by reference to Exhibit 1.1
to
Credicorp’s Annual Report on Form 20-F dated June 30,
2005
|
1.2
|
Memorandum
of Association of Credicorp Ltd., incorporated herein by reference
to
Exhibit 1.2 to Credicorp’s Annual Report on Form 20-F dated June 27,
2003
|
8
|
List
of Subsidiaries, incorporated herein by reference to Exhibit 8 to
Credicorp’s Annual Report on Form 20-F dated June 27,
2003
|
12.1
|
Certification
by the Chief Executive Officer Pursuant to Section 302 of the U.S.
Sarbanes-Oxley Act of 2002
|
12.2
|
Certification
by the Chief Financial and Accounting Officer Pursuant to Section
302 of
the U.S. Sarbanes-Oxley Act of 2002
|
13.1
|
Certification
by the Chief Executive Officer Pursuant to Section 906 of the U.S.
Sarbanes-Oxley Act of 2002
|
13.2
|
Certification
by the Chief Financial and Accounting Officer Pursuant to Section
906 of
the U.S. Sarbanes-Oxley Act of 2002
|