CREDICORP LTD — Call Transcript 2025

Good morning, everyone. I would like to welcome you to the Credicorp Ltd., third quarter 2025, conference call. A slide presentation will accompany today's webcast, which is available in the investor section of Credicorp's website. Today's conference call is being recorded. As a reminder, all participants will be in a listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation. If you would like to ask a question, please signal by pressing star and then one on your telephone keypads. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. If you are using a speakerphone, we do ask that you please make sure that the mute function is turned off to allow your signal to reach our equipment. Now, it is my pleasure to turn the conference call over to Credicorp's IRO, Milagros Cigüeñas. You may begin. Thank you and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Perez-Reyes, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Rios, Chief Risk Officer; [indiscernible], CFO of Insurance and Pensions; and Rocio Benavides, Mibanco’s Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Gianfranco Ferrari will begin the call with remarks on key messages of our recent investor day, our recent political and macro environment, and a brief overview of our quarterly results, followed by Alejandro Perez-Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for full year 2025. Gianfranco, please go ahead. Thank you, Milagros. Good morning, everyone. Thank you for joining us to review Credicorp's results for the third quarter of 2025. Just over a month ago, we had the pleasure of hosting our investor day in New York, where we marked 30 years since Credicorp's listing on the New York Stock Exchange and shared our roadmap for sustainable growth and impact. Our strategy is anchored in three key pillars. First, we are accelerating the scalability and monetization of our digital ecosystem by financially including more people and expanding the formal cashless economy. Platforms like Yape, Tenpo, and Guarda are playing a bigger role across payments, credit, and savings, and are already generating new revenue streams. Second, we're unlocking growth through business synergies across all our businesses by leveraging shared capabilities in data and AI, talent, and cross-business platforms to drive revenue diversification and efficiency. Third, we're executing with discipline with a focus on profitability thresholds, capital allocation, and long-term value creation across both our core and disruptive initiatives. We also reaffirm our medium-term target, an ROE of 19.5%, and an efficiency ratio around 42% over a three to four-year period. These goals are underpinned by scalable platforms, improving asset quality, and disciplined growth. Before turning to the quarter's results, let me take a moment to acknowledge the recent political developments in Peru and macro conditions across the markets where we operate. Late on October 9th, Peru's Congress voted to impeach President Dina Boluarte, citing permanent moral incapacity. Shortly after, the head of Congress, Jose Jeri, was sworn in as president. This follows a period of low approval ratings and growing public frustration with crime and governance. While abrupt leadership transitions have unfortunately become part of the Peruvian landscape, the country has also demonstrated a long history of economic resilience and institutional continuity. At Credicorp, we've built our strategy and operating model for resilience. Our geographic and business diversification, strong capital and liquidity position, and disciplined risk management allow us to stay focused on delivery, even as the external environment shifts. Over the past 30 years, as a listed company, we've generated a novel total shareholder return above 14%, consistently outperforming our regional peers. That track record reflects more than strong financials. It speaks to a business model built to navigate uncertainty, decoupled from macro cycles, and anchored in long-term value creation. That's why, when events like recent political changes unfold, we remain grounded and focused on what we can control. As always, we're monitoring developments closely. The macroeconomic environment during the quarter was relatively stable, with key indicators pointing to a gradual recovery across the region. In Peru, GDP growth for 2025 is now projected at 3.4%, up slightly above 3%. This revision is driven by higher-than-expected export prices and a boost to consumption following the eighth pension fund withdrawal. Domestic demand is forecast to grow nearly 6%. Its fastest pace in over a decade outside the pandemic rebound. Driven by a more advanced economic cycle, record terms of trade control inflation, supporting real wages and rising trade demand. These trends point to improving business conditions, with mining investments outlook strengthened by favorable export prices and new project ramp-ups. Despite the upcoming 2026 elections, we expect GDP growth to remain resilient, between 3%-3.5%, largely supported by sustained gains in terms of trade. With inflation forecasted at 1.8% for 2025 and 2% for 2026, it remains comfortably within the central bank's 1%-3% target range. In September, the Central Bank cut its policy rate for the third time this year to 4.25%, bringing it close to a neutral level. This easing cycle is already supporting trade growth and private consumption. FX markets and external balances also remain stable, supported by high commodity prices. In Chile, GDP growth is driven by favorable terms of trade, mining investment, and resilient consumption, with a more broad market outlook boosting medium-term expectations. Colombia's GDP is expected to grow 2.3% in 2025, up from just 1.6% in 2024, though fiscal pressures keep sentiment cautious. In Bolivia, economic adjustment challenges remain, but Rodrigo Paz's elections end two decades of mass rule, raising hopes for a more pragmatic, reform-oriented economic agenda. All in all, we continue to navigate a dynamic external environment with prudence, agility, and a focused approach to the areas where we can drive long-term value. With that context, let me now walk you through the key results of the third quarter. We had another strong quarter with robust performance across our core businesses and consistent delivery on our strategic priorities. These results drove an ROE of 19.6%, anchored in healthy operations and a prudent risk posture. Universal Banking and Insurance and Pensions delivered very strong results, while Microfinance continued progressing steadily towards its medium-term profitability target. Fee-based and transactional income also grew, underscoring the strength and diversity of our platform. Our Innovation portfolio contributed 7.4% of our risk-adjusted revenues, keeping us firmly on track to our 10% target for 2026. Turning to trade activity, dynamics improved, and FX-neutral loan growth accelerated to 7% year-over-year. Origination pipelines remained healthy, particularly in Retail Banking and Microfinance, positioning us for further momentum in the fourth quarter. The positive trade momentum also supported margins. Risk-adjusted NIM stood at 5.5% in year-to-date figures, supported by better asset quality and our structurally efficient low-cost funding base. On the deposit side, we raised the share of demand and saving accounts to 39.5%, a direct reflection of our digital engagement strategy and the trust we've earned from our clients. Asset quality also continued to trend favorably, benefiting from enhanced origination standards, refined risk-based pricing, and stronger collection execution. Lastly, from an operational standpoint, our efficiency ratio came in at 46.4%, well within our expected range, reflecting the leverage in our digital capabilities and our disciplined cost management. Capital levels remained strong across all businesses. With that, I'll turn it over to Alejandro to discuss our results and provide more insight into our operational and financial performance. Alejandro, please go ahead. Thank you, Gianfranco, and good morning, everyone. This quarter's 19.6% ROE reflects sustained momentum in our core businesses and the increasing contribution of our innovation portfolio. We revalued Bolivia's balance sheet using a more market-reflective exchange rate, which generated an accounting year-over-year contraction of 2.1% in Credicorp's total assets this quarter. As I discussed the quarter highlights, I will focus on the year-over-year operating trends. Loans measured in quarter-end balances increased 1.5%, negatively impacted by the revaluation of Bolivia's balance sheet and the depreciation in BCP's dollar portfolio. Excluding these effects, FX-neutral loan growth for the quarter was 7%. This increase was driven primarily by BCP, mainly through mortgages and consumer loans in retail banking, and by Mibanco. Asset quality has improved materially year-over-year. NPLs contracted across the board and Credicorp's NPL Ratio stood at 4.8% this quarter. The cost of risk fell to 1.7% on the back of fortified risk management and supported by improvements in payment performance and in the Peruvian economy. Net interest income increased 2.7%, spurred by a contraction in interest expenses after interest rates fell and low-cost deposits expanded and accounted for 58.1% of the funding base. In this context, NIM increased to stand at 6.6%. Other core income grew 11.9%. Fee income increased 8.2%, boosted by transactional activity at Yape and BCP. Gains on FX transactions rose 23.4% through higher volumes at BCP. Lastly, the insurance underwriting result grew 33.1%, reflecting a stronger insurance service result in the life business. On the efficiency front, our cost-to-income ratio stood within guidance at 46.4%. Next slide, please. Peru's economic outlook remains positive despite former President Boluarte's impeachment. So far, there has been no significant impact on key financial variables such as interest rates and the exchange rate. The pace of GDP growth accelerated in the third quarter to stand around 3.5% year-over-year. Domestic demand continued to outpace overall GDP growth, as it has since mid-2024, expanding at a robust 6% for the fourth consecutive quarter. This sustained momentum is attributable to the mid-cycle phase of the economy and to the fact that the terms of trade are at the most favorable level seen in the past 75 years. High-frequency indicators continue to point to robust economic activity driven by a steady recovery in employment and real wages. In terms of private investment, business expectations, one of its key drivers, remain in optimistic territory. Meanwhile, core proxies such as heavy-duty vehicle sales, capital goods imports, and terms of trade continue to grow at a double-digit pace. We revised our year-end GDP growth forecast upward from slightly above 3% to 3.4%, based on two main factors. First, export prices for gold, copper, and silver, which together account for half of Peru's total exports, have risen significantly faster than expected, driving terms of trade to record highs. Second, the eighth pension fund withdrawal is expected to boost private spending and support household consumption. We expect economic activity to remain strong throughout the coming year, with GDP growth projected in the 3%-3.5% range, despite pending elections in 2026. Next slide, please. The Federal Reserve lowered its policy rate for a second consecutive meeting in response to signs of a cooling labor market. Fed futures have moved, and now the probability of one additional rate cut in December is evenly split. In Peru, annual inflation has remained below 2% for 11 consecutive months, which constitutes one of the lowest prints for both advanced and emerging economies. Following the 25 basis points rate cut in September, which brought the policy rate down to 4.25%, the central bank is close to what it considers the neutral rate. In Colombia, inflation recently accelerated to 5.2% year-over-year in September, which remains above the upper bound of the target range of 4%. Inflation concerns, coupled with fiscal challenges, have led the central bank to keep its policy rate stable at 9.25% during the last three meetings. In Chile, the central bank held its policy rate steady at 4.75% during its most recent meeting. Inflation slowed to 3.4% year-over-year in October, the lowest rate in more than a year, boosting expectations for a December rate cut. This Sunday, Chile will hold its general election, and expectations for a more pro-market administration are seen as supportive for future growth. Next slide, please. BCP maintains a solid ROE of 25.6%, which reflects resilient margins, diversified revenue streams, and low cost of risk. On a quarter-over-quarter basis, total loans measured in quarter-end balances rose 1.7%. In FX-neutral terms, growth reached 2.4%, mainly driven by retail banking segments, which grew 3%, while the whole banking portfolio increased 1.8%. NIM stood at 6.1%, increasing 10 basis points on the tail of a shift in the asset mix. Other core income grew 1.6%, fueled by fee income from Yape. NPL volumes fell 0.9%. In retail banking, NPL volumes declined, led by individuals and, as a close second, by SMEs. Provisions rose 9.6%, reflecting both the recurrent dynamics of retail banking and specific impacts within wholesale banking. In retail banking, provisions for individuals remained stable, while provisions for SMEs rose slightly due to a base effect stemming from higher reversals last quarter linked to increased debt repayments in SME business. In wholesale banking, there was a relevant increase in the credit risk of one corporate client, which is currently paying up to date. The cost of risk edged up to 1.3%, driven by the dynamics of provisions and loan growth, which were supported by favorable macroeconomic conditions in Peru. In this context, BCP's risk-adjusted NIM stood at 5.2%. From a year-over-year perspective, I would like to highlight the following dynamics. Loan balances grew 4.6%. However, loan growth in FX-neutral terms reached 7%, led primarily by retail segments and closely followed by wholesale loans. Retail segments and consumer loans, in particular, were favored by positive economic conditions, while lower interest rates boosted growth in mortgages. In wholesale banking, middle-market loans were up this quarter, bolstered by short-term lending to agribusinesses. NPLs contracted across all BCP segments, primarily in SMEs and individuals. In individuals, the reduction in NPLs was attributable to repayments, which were fueled by higher liquidity, and to improvements in loan origination and debt collections management. NIM decreased 6 basis points, riding a downward trend in the yield on interest-earning assets and partially offset by a lower funding cost, both in line with market rate trends. The cost of risk fell across retail banking segments, driven by improvements in payment performance after low-risk vintages increased their share of total loans, supported by a strengthening economic backdrop. Other core income rose 10.8%, fueled primarily by fee income, which reflected solid results in Yape and BCP. Gains on FX transactions, which grew alongside an uptick in transactional activity in retail segments, were a secondary driver of growth in other core income. The ratio for other core income to assets maintained its upward trend, which is the result of our initiative to diversify BCP's income streams. It is worth noting that this evolution reflects our investment in technological capabilities to bolster our transactional platform. The efficiency ratio stood at 38.7% at the end of the third quarter. Growth in operating expenses was spurred by provisions for variable compensation and hiring of digital talent for strategic projects. Next slide, please. Yape continues to generate value across the Credicorp ecosystem with 15.5 million monthly active users, which is the equivalent of 82% of the economically active population. We aim to expand this user base to 18 million by 2028. Current users conduct an average of 58.5 transactions per month. Only 12% of these transactions generated revenue, indicating considerable room for further monetization. From a financial standpoint, revenue per monthly active user reached PEN 7.4, while expenses per mile stood at PEN 5, reflecting continued improvements in profitability and operational scalability. Although marketing campaigns aimed at driving feature adoption led to higher expenses in the quarter, no material shifts in cost structure were observed. In the last quarter, revenue grew almost two times year-over-year. Looking ahead, expect revenues to triple by 2028, primarily driven by higher revenue per mile as users adopt more monetizable features. Payments remain the dominant contributor, accounting for 53% of Yape's revenue, fueled by strong growth in QR, bill payments, and checkout functionalities. Lending continues to gain momentum, now accounting for 20% of Yape's revenue. To date, over 3 million clients have received disbursements, 1 million of which constituted first-ever formal loans. Looking ahead, we aim to expand our disbursed client base to 8 million by 2028 as we deepen our understanding of user payment behavior and refine our risk management capabilities. In e-commerce, GMV continues to grow, driven by Yape promos and gaming, establishing a third monetization pillar. In aggregate, Yape contributed 6.6% of Credicorp's risk-adjusted revenue this quarter, advancing its mission to deepen financial inclusion, scale monetization, and strengthen its strategic role as a growth engine of Credicorp's digital ecosystem. Next slide, please. Ongoing economic recovery continues to exert a positive impact on Peru's microfinance sector, with Mibanco outperforming sector peers. In this context, Mibanco's profitability kept rising and stood at 18.8% this quarter, supported by a rebound in loan disbursements in recent quarters and strengthened credit risk management. I would like to highlight key quarter-over-quarter dynamics. Loans grew 2.4% in quarter-end balances, riding an upswing in loan disbursements, which hit an all-time high in September. The NPL ratio fell for the fifth consecutive quarter to stand at 5.7%. NIM peaked at 15%, boosted by a shift in the mix towards small-ticket, higher-yield loans. In parallel, the cost of risk fell 17 basis points to stand at 5.2%, while risk-adjusted NIM reached a four-year high of 11%. From a year-over-year perspective, loans measured in quarter-end balances grew 8%. Our active pricing management, coupled with the decreasing cost of funding, helped NIM increase. The cost of risk fell 101 basis points as lower-risk vintages continued to gain traction and now account for 78% of total loans. Operating expenses remained under control, and efficiency stood at 51.4%. In this context, Mibanco's year-to-date contribution to ROE was 16%, transitioning towards our target for medium-term ROE in the low 20s. Mibanco Colombia's results continue to tick up, reflecting double-digit year-over-year loan growth, controlled risk management, and optimized efficiency, supported by a more favorable economic environment for the microfinance sector. As a result, profitability stood at 12.3% at quarter-end. Next slide, please. At the Grupo Pacifico, insurance underwriting results remained strong this quarter, supported by solid operational dynamics in both the P&C and life businesses, with ROE standing at 20.9%. On a quarterly basis, net income remained relatively stable. Insurance underwriting results rose 7% on the back of the life business, which reported a decrease in insurance service expenses that was primarily driven by a drop in claims. The EPS business also posted an improvement in its underwriting results, albeit to a lesser extent. These gains were partially offset by a decline in P&C underwriting performance impacted by higher claims. Growth in underwriting results was offset by a drop in net interest income associated with life insurance contracts. On a year-over-year basis, net income rose 23%, primarily on the back of Pacifico's full consolidation of the corporate health insurance and medical services operations. Excluding the consolidation effect, net income rose 10%. Insurance underwriting results rose for the life business, driven mainly by a decrease in claims in disability and survivorship and credit life lines, and for the P&C business, which reported growth in direct premiums in the cars and medical assistance lines. These impacts were partially offset by higher operating expenses and by an increase in the net loss on securities, which was impacted by credit downgrades on a couple of assets in the investment portfolio. Next slide, please. Profitability of our investment management and advisory business increased this quarter, with ROE standing at 17.4%. On a quarter-over-quarter basis, core income-generating businesses delivered strong results this quarter, reflecting improved capital markets activity, particularly in the trading unit, and continued growth in wealth management and asset management, with AUMs in U.S. dollars up 6% and 14%, respectively. These dynamics were partially offset by higher operating expenses. As a result, net income increased 10%. On a year-over-year basis, net income increased by 5%, mainly due to favorable performance of the trading unit in our capital markets business and stronger treasury performance. These dynamics were partially offset by higher operating expenses. Next slide, please. Now, I would like to review Credicorp's consolidated evolution regarding quarter-over-quarter dynamics. Loan growth was fueled by retail segments, leading to a higher yield interest-earning asset mix. As a result, the yield on interest-earning assets rose 13 basis points. On the liability side, low-cost deposits registered an increase in their share of total funding, and bond maturities triggered a decrease in interest expenses. These favorable dynamics were partially offset by an increase in the balance of time deposits at BCP. As a result, funding costs decreased 1 basis point. On a year-over-year basis, the positive impact of a higher yield interest-earning asset mix was offset by the negative impact of lower market rates. As such, the yield on interest-earning assets fell 9 basis points. On the liability side, interest rate dynamics, complemented by our competitive advantage in low-cost funding, led the funding cost to decline 25 basis points. In this context, NIM stood at 6.6%, up 9 basis points. Going forward, growth in retail lending, powered by our strengthened risk management capabilities, should sustain NIM's growth. Next slide, please. Moving on to loan portfolio quality. Asset quality showed slight further improvement this quarter as NPL volumes continued to contract across segments, falling to levels below those reported prior to the 2023 recession. Amid ongoing economic recovery, provisions have dropped over the past 12 months due to an improvement in payment performance and successful risk management measures at both BCP and Mibanco. The positive impact of these improvements exceeded expectations, which kept provisioning levels low once again this quarter. In this context, the NPL coverage ratio rose and stood at 110.1%. Going forward, we will continue to accelerate retail origination while managing risk. In coming quarters, asset quality may improve on the back of a rising liquidity after the eighth pension fund withdrawal is rolled out from November 2025 to February 2026. Following that, we expect loan growth to recover its pace and the cost of risk to rise but remain within our appetite. Next slide, please. Core income expanded 5.1% year-over-year, underscoring our ability to deliver consistent growth. Net interest income rose 2.7%, supported by a stronger funding mix and a higher-yield loan portfolio. This helped lift NIM to 6.6%, reinforcing the resilience of our margin. Other core income grew 11.9%, driven by a few momentum from Yape and BCP, and a 23.4% increase in FX gains on the back of higher volumes. As highlighted during our investor day, other core income is expected to play a growing role in Credicorp's strategy to diversify revenue sources. This includes scaling digital monetization through Yape, expanding bank assurance, accelerating growth in remittances, and deepening transactional engagement across traditional platforms. Risk-adjusted NIM rose 60 basis points year-over-year to stand at a record high of 5.5%. This evolution reflects how risk management is becoming a competitive edge that enables expansion into new market segments. Efficiency ratio for the first nine months of the year stood within guidance at 45.7%. Operating expenses grew 12.8%, fueled primarily by core businesses at BCP and by investments in our innovation portfolio. Growth in core expenses at BCP was driven mainly by provisions for variable compensation and higher IT expenses. Expenses for our innovation portfolio rose 16.1%, led by Yape, Tempo, and Culqi, which represented 83% of disruptive expenses in the first nine months of this year. Next slide, please. ROE for the first nine months was 20.1%, supported by solid business performance and bolstered by the extraordinary gain from the Banmedica transaction in the first quarter of the year. If we adjust for each transaction, ROE is 19.3% for the first nine months. On an accumulated basis, net income reached a record high even when excluding the gains from Banmedica's transaction. We achieved this by leveraging low cost of funding, a reduction in the cost of risk, and an increase in lending. We are committed to generating diversified and robust revenue streams as we ramp up revenues from other core income and transition toward a stronger, more resilient business model. Now, I'll move on to our guidance. Next slide, please. As previously stated, we maintain our GDP guidance as we expect GDP to grow 3.4% this year. We expect our loan book to grow around 6.5% year-over-year, measured in end-of-period balances. These figures do not consider the impact of the asset revaluation at BCP Bolivia, but do include the devaluation of the U.S. dollar against the Peruvian sol. Amid a more dynamic economic backdrop and strengthened origination levels in the first nine months of the year, we expect balance growth to continue accelerating in the last quarter, driven primarily by retail banking at BCP and by Mibanco. The acceleration anticipated for loan growth in the shift in the mix and the shift in the mix towards retail should support NIM as interest rates trend downward. Accordingly, we expect NIM to stand within our guidance range. While an increase in the cost of risk is anticipated in the final quarter, driven by a stronger focus on lending to higher-yielding segments, we expect it to close at the lower end of the guidance range. Accordingly, we expect the risk-adjusted NIM to move closer to the upper end of the guidance. On the efficiency front, we expect to be within our guidance range. Regarding fee income and insurance underwriting results, we expect growth to stand at low double digits this year, supported by an acceleration in economic activity and ongoing diversification of our income sources. As a result, we maintain our full-year ROE guidance at around 19%. This figure reflects both solid core performance and sustained discipline on the risk front. While local political uncertainties remain, we believe the fundamentals are in place to support this level of profitability. With these comments, I would like to open the Q&A session. Ladies and gentlemen, at this time, we'll begin the question-and-answer session. If you would like to ask a question, please signal by pressing Star and then one on your telephone keypads. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to allow everyone the opportunity for questions. We also ask that you please only ask one question at a time. After your question has been addressed by our speakers, you will then be allowed to ask as many follow-ups as needed, but again, please ask only one question at a time. Thank you. Our first question comes from Ernesto Gabilondo from Bank of America. Please go ahead with your question. Thank you. Hi, good morning, Gianfranco, Alejandro, Cesar, Francesca, Milagros, and good morning to all your team. Happy Friday, and thank you for the opportunity to ask questions. My question will be related to asset quality, so NPLs and cost of risk are behaving much better than expected this year. It's well below your guidance provided. You mentioned you're expecting cost of risk to be at the low end of the guidance, should be around 2%. My question is, is it not too conservative, this guidance, because cost of risk will have to be above 2% in the last quarter? I just wanted to hear your thoughts on that. Looking to 2026, that probably you will accelerate the growth into high-yield segments. How should we think about the cost of risk? Should we start about 2% or similar guidance that you have provided this year? Thank you. Good morning, Ernesto. This is Gianfranco. I'll ask Cesar to get into the details. Hi, Ernesto. Thank you for the question. I would say that, in fact, the results are better than we initially expected at the beginning of the year. It's a combination of better results in the measures taken in the risk management front, but also a more dynamic economic backdrop. As we were mentioned, and Alejandro has been highlighted, the economy is growing faster, particularly if you consider consumer spending, and this is positive for the quality of the portfolio. At the end of the year, another factor is that we are going to have liquidity events, the AFP withdrawals, that are going to impact negatively, we'll say, loan growth, but positive credit quality. This is going to contribute to the numbers that we are laying out. Actually, Alejandro mentioned in the guideline that the cost of risk is going to be around the lower end, and the lower end is 1.8%. That's the first part of the question. In the second part, what we expect for the next year is to increase gradually, as we have mentioned previously, the shift in the composition of the portfolio. I will again emphasize that the positive thing is that we expect to do that, increasing the NIM, and so the risk-adjusted NIM should also increase in absolute terms in relation to the current levels. Excellent. Thank you very much. Just for a second question, in some OpEx growth, we noticed this quarter came at a double digit. As you mentioned, the idea is to have revenue growth outpacing OpEx growth over the next years. How should we think about OpEx growth next year? I do not know if you can break it down, your expectation of OpEx growth. How much will be related to the disruptive initiatives like Yape, Tenpo, and how much to the ongoing business? Alejandro? Sure. Yes. We have seen important operating expenses growth this quarter, but it is inside of our guidance, as we mentioned. It has been planned as we are revamping capabilities, both in the core business and the innovation part. We expect to continue to invest in the future, but in the core business, probably at a lower speed than what we have seen in this year, because again, we have done some particular projects during this year, so it should come a little bit lower. On the innovation side, we will probably remain in similar numbers that will allow us to generate more income and hence go to our midterm target that Gianfranco mentioned of 42% in the next three years, around three years. You should see a little bit of a lower growth of expenses in the core business and similar growth in the innovation part. Okay. Perfect. Thank you very much. Thank you. Our next question comes from Brian Flores from Citi. Please go ahead with your question. Hi, team. Good morning. Thank you for the opportunity to ask questions. I have a question related to growth, right, because your long-term guidance of ROE is 19.5%, and as you mentioned, you're ramping up. The economy is going well. Just wanted to see what should we think about the first quarter of the year, given the political uncertainty? We have elections in April, so just wondering if we might see some deceleration in the first quarter as mostly corporates tend to be a bit more cautious. As you mentioned, there are some impacts from withdrawals probably carrying into January, February. If you think maybe we could see ROE levels similar to this year, which obviously are very positive, or if you think we are, I would say, converging into this 19.5 long-term in a sooner way? Then I'll ask my second question. Thank you. Sure. Hi, Brian. This is Gianfranco. I'll answer the uncertainty question regarding elections next year. Maybe based on data, if you do a backtesting of what has happened in the last, I do not know, four or five elections, whatever, the previous year, there is basically no reduction in terms of growth, long-term growth, or investment, and so on. However, there is a slowdown over the last four elections. There is a slowdown in the first quarter of the year of the election. That is in line to what you are implying in your question. Having said that, it's a tricky question because of what César and Alejandro mentioned before. The pace of growth in terms of GDP, consumption in general, trade balances, and so on, some of those indicators are at record levels for the last, I don't know, 10 years. Actually, trade balance is at record levels over the last 70+ years. It is tricky. If you force me to give you an answer, my personal opinion is that next year, the first quarter of next year, is not going to be as low as what has happened in previous elections. Regarding ROE for the upcoming years, we will provide guidance next year. No, next call, actually. Next call. Yes, next call rather than nowadays. Not today, sorry. No, that's—sorry, sorry. I was just going to complement in a couple of comments. Again, as Gianfranco just mentioned, the economy is finishing the year very strongly. Just a couple of points. Private investment in the last quarter, the third quarter of the year, grew 10.4%. That's the highest since 2013. We already mentioned private consumption. We are entering the year with a very positive situation. That's basically there's going to be some election-related effects, but again, it's interesting to see which one is weighing more. We're not expecting a big change in the first quarter. Having said that, there is also the aid withdrawal from the pension plans. What we expect is for it to have an effect of around 0.5% in growth, in less growth, but more related to this extra cash in the hands of our consumers and maybe prepayments in loans based on that. Again, in this economic backdrop, we expect next year to—I mean, we'll give guidance in the next call, but we expect next year to be a strong year in growth for credit growth. No, perfect. Just to clarify, that 0.5% impact is full year, or is it year-over-year in the first quarter? It is full year, but it's going to be probably very much in the first quarter because the withdrawals start in November and finish in February. So it is the full year effective half percentage point, but again, probably very concentrated in the first part of the year. No, okay. Perfect. And then just to confirm, the impact—I mean, the baseline that we should think about in terms of growth is, based on what I understand, similar to this level of 2025, right? That it's in the guidance. We will give guidance again in the next call, but the way I would put it is, if you think about 2025, the beginning, the first half of 2025, growth was not very strong. It has accelerated in the last quarters. I would say that there is probably an opportunity to even better grow when you consider a full year in 2026. No, no, perfect. I really appreciate the clarification because, as Gianfranco was saying, this is indeed a tricky question, and it has a lot of moving parts. I really appreciate—if I can just very quickly on my second question, Yape's contribution, nearly close to 7%. Just wondering if we can envision a double-digit contribution by 2026. Definitely. Yeah. Yeah, very probably. Perfect. Thank you very much. Thank you, team. Thank you. Our next question comes from Renato Meloni from Autonomous Research. Please go ahead with your question. Hi, everyone. Congrats on the results. It's Renato from Autonomous Research here. Just first, a quick follow-up on loan growth, just picking up on your earlier comments. Just wanted to know if you expect to reach the loan growth guidance for this year and if that's FX adjusted or just the nominal value. My second question is on the NIM expansion. I just wanted to reconcile your comments because, I mean, we can see the mixed shift here driving yields higher, but at the same time, you're commenting on these lower risk vintages that are positively impacting cost of risk. I just wanted to put these two together and see what really happened here. Thank you. Alejandro, could you take the first one? The first one was the loan growth. Loan growth. Sure. Loan growth, I would say that the number we've given in guidance is nominal, but it does consider the adjustment of Bolivia's restatement, okay, which is just an accounting statement because we're using a different exchange rate. It is not considering any impact of the sol dollar exchange rate. We do expect to reach it. I mean, if we consider the retail growth we've seen in the third quarter, just by continuing with that retail growth and having some wholesale growth, we should be able to be around that area. With the economic backdrop, we believe it's very achievable in this year. I can't—yeah, yeah. Go ahead, Cesar, the second question. Yes. The second question. I understand your question because you say it's a combination of better quality, but after the better quality, higher cost of risk. The issue is that we are talking about fundamentally two different portfolios. We have been improving the quality of origination, so the traditional portfolios are having less cost of risk gradually. As Alejandro mentioned, as the year goes, we have more of newly originated parts of the portfolio in relation to the originated portfolio in year 2023 that comes with higher cost of risk. This is a trend that goes the cost of risk down. As the year passes, we are starting to originate a new segment with purposely higher cost of risk, higher margin, and this percentage is growing gradually. The combination of these factors explains the initial draw, diminishing the cost of risk and the gradual improvement as the year ends and the next year begins. I do not know if it has clarified the points. No, that is pretty clear. Thanks very much. Again, congrats on the results. Thank you. Our next question comes from Yuri Fernandes from JPMorgan. Please go ahead with your question. Gianfranco, Alejandro, Milagros, everyone. Thank you for the opportunity of asking questions. I have one regarding Bolivia. I know this year has been volatile on FX, the impairments, like the readjustments, right, on the portfolio deposits. Now there was an important political shift in Bolivia. I know this is small for your entire operation, but this quarter, it was already better. If you can comment on what you expect for Bolivia, if the elections, like the new president, should have any tailwind for you going forward, like any securities gains you may have, just trying to understand and know if Bolivia, from a headwind in the past years, may become a tailwind for you here. Thank you. Hi, Yuri. Let me take that question because I believe you know that I ran that bank for three years, so I'm quite knowledgeable about Bolivia. Even though it's very early stages for the new government, the initial definitions or decisions they've made, they're giving very positive signaling. The executive cabinet is very pro-market and professional. They just appointed, I believe, yesterday or the day before, the new Central Bank president. He's a very well-seasoned technical guy. The initial indicators are quite positive. As you mentioned, BCP Bolivia has been small for us. I've been seeing it as an option value for us, and that option may become quite relevant going forward. We're positive on what can happen in Bolivia as a country. Having said that, there's a lot to be done on the political and economical and social matters for the government, but we're quite positive with the potential outcomes going forward. No, thank you, Gianfranco. So we'll keep asking about the app, but good to know that you have the optionality there. If I may, just a quick second one, payout and dividends. Your capital accumulation has been pretty strong. I know you had the cash payment of the legal debate you have on the taxes. But what should we expect here? Guide us through capital returns for shareholders. Thank you. Yes. Can you take it over? Sure. Yes. Hi, Yuri. So basically, this year, the payout has been 58%. And as you alluded, we did that in just the regular dividend. We didn't pay an extraordinary dividend. Going forward, I mean, there's growth in our business that, of course, consumes capital, but we do expect to maintain our increasing ordinary dividend and potentially with also extraordinary dividends. I would say probably payout ratios should be higher than this year in the high 60s. Again, it's going to depend on whether there's any particular transactions. There's always the possibility of something that changes that. In ordinary business, we should see an increase from this year, not necessarily to the 2024 levels where we had a payout of 75%, but we were generating a lot of income without loan growth. That, of course, doesn't consume capital. Again, higher than this year and with increasing ordinary dividends is what I would think we're going to see in the coming years. Great. In the case of inorganic acquisition, which areas do you see value for? Insurance, you just had Banmedica, but anything that is important for Credicorp nowadays? Nothing relevant, Yuri, as we speak. As we mentioned—actually, Alejandro just mentioned it—we will retain whatever is needed for financing growth, including potential inorganic operations. Everything else will be paid as dividend. The idea is to keep increasing the regular dividend. As we speak, there is nothing relevant in terms of M&A. No, perfect. Thank you, Gianfranco. Thank you, Alejandro. And congrats on the quarter. Thank you. Our next question comes from Lindsey Shema from Goldman Sachs. Please go ahead with your question. Hi. Good morning. Thank you for taking my question. Just a follow-up on the impacts of the eighth pension fund withdrawal. I was wondering if you could kind of weigh the impacts against each other. I mean, it sounds like there is going to be better asset quality, but slower loan growth. Are you seeing any impacts to Prima? Net net, how are you seeing the impacts on the business? I'll ask a second follow-up afterwards. Yeah. Alejandro? Yeah, sure. The eighth withdrawal is going to be—we expect it to be around PEN 25 billion. If we think about the usual share we've retained inside Credicorp, that could be around PEN 10 billion. There's a positive impact in local funding. We expected that to be around 1% more than we already expected in local funding, both this year and next year. That's a positive. As I mentioned, in loan growth, as Credicorp, we are expecting around half a percentage point less of loan growth next year. That is a negative impact for the coming year. As for Prima, the impact this year is very, very small if you consider that this actually impacts basically fee income, and it is happening very late in the year. Next year, there is certainly going to be an impact in fee income of around 10% of fee income if the numbers that we are assuming of withdrawals remain in place. Yeah. Maybe just a quick comment that goes beyond your question, actually, and we have been saying it for a couple of years already, is unfortunately, we believe that the pension system in Peru has been destroyed by the politicians. We have been quite active in the past in trying to come up with a reasonable proposal that has not been taken into consideration. Hopefully, in the upcoming years, that pension fund system, both the public one and the private one, can be fixed and we come up with a value proposition and structuring that is reasonable for Peruvians. Otherwise, there is going to be a major issue, I do not know, 10-15 years down the road. Thank you. For my second question, I mean, continue to see strong loan growth at Yape. Could you provide an update on the unit economics, especially as you have started to increase the multi-installment loans? Yeah. I mean, as I mentioned, we are scaling the multi, as you mentioned, the multi-installment loans in Yape. Today, I mean, the cost of risk in that versus the rate that we are charging, it is a very positive business. It is still small. When we expect to scale it going forward, I do not have the unit economics to share at this time. Again, it is a growing business that should—today, it represents around 20% of Yape's income, the whole lending business. We expect it to continue growing and become an even more important contributor to Yape. Maybe to complement Alejandro's answer and for you to understand how we are managing the loan book at Yape. We start lending—bear in mind that this is mostly unbanked or underbanked. We start lending mono installment, mono quotas, very small ticket loans. As we gain info and data from the customers, we shift them or increase the value prop in terms of tenor and size of the ticket. Both the mono quota overall and the multi-installment are profitable businesses. Again, we do not have the unit economics of each single loan, but we manage them actually by advantages. Overall, the results are positive. Yes, and it has a very positive impact in the population because for more than 1 million clients, it is the first loan that they have gained access to. Yeah. Our next question comes from Daniel Vaz from Safra. Please go ahead with your question. Hi, Gianfranco, Alejandro, Milagros, all team. Congrats on the strong performance, very good results. I am particularly interested in Mibanco here. It continued to surprise us, right? I think ROE expansion, maybe improving asset quality also with good names. You are coming from years, I guess, since maybe 2023, that your loan growth has been decreasing, right? Right now, we see a loan growth on the positive side coming from like 1% last quarter to 8% right now. Also very strong numbers in Colombia. I noticed like 20% year-over-year growth. Looking at the whole picture, correct me if I'm wrong, but this outperformance and also controlled asset quality should give you even more confidence to accelerate growth in Mibanco, right? I guess looking ahead like 2026, I would expect this loan growth to migrate from, I do not know, maybe single digit to low teens, maybe mid-teens level portfolio growth, right? You are seeing very, very good asset quality, ROE expanding. Is this the case? I mean, should we think Mibanco like this to the upcoming quarters? Thank you. Yeah. Thank you, Daniel, for your question. Let me get a couple of steps back to answer for you to have a more holistic vision. The whole microfinance sector in Peru has been hit very harshly over the last four or five years. It's the worst combination because rates went up. The funding and most of the microfinance institutions' funding is not retail funding or transactional funding. It's time deposits or local capital markets. Rates went up that they were not able—I am talking as a system—they were not able to pass through that increase in rates. Cost of risk went up. Therefore, margins were really squeezed. On top of that, and I am always being very critical about it, the microfinance institutions, at least in Peru, the whole transactional business, fee income, and so on, and this is the case of Mibanco, is very weak. You see that when they had the perfect storm over the last three, four years. Going forward, I totally agree with what you just said regarding lending at Mibanco because we expect the quality of the portfolio has already improved dramatically. The new vintages are performing better than the old vintages. We are quite positive on the lending business going forward. On top of that, Mibanco, and this is a more long-term strategy. On top of that, Mibanco is currently working in complementing that business. In the next few years, you'll see that the fee income business, transactional business, is going to grow at a faster pace than the lending business or the lending of that margin because we are focusing in bringing more transactionality to Mibanco. The collateral effect is that the cost of funding should go down also. No, thank you. Very, very good panorama here for upcoming quarters. Very exciting numbers for Mibanco here. Thank you. Our next question comes from Carlos Gomez from HSBC. Please go ahead with your question. Thank you. Good morning. Congratulations, particularly on Yape and particularly on Bolivia. You really took my question because I know that it's close to your heart. In that regard, you have the changes in Bolivia. You have the elections in Chile, the elections in Colombia, as well as Peru. It seems to me that you might have a target-rich environment for investment around the region. Does that make you more inclined to perhaps invest more and distribute less? If so, do you have a particular geographical difference right now? That would be the question. Yes. Yes. Good morning, Carlos. Our region, so again, Credicorp has been here for 30 years. BCP has been here for over 130 years. Actually, the vision we have goes beyond the political environment. Obviously, the political environment impacts the performance of our countries and our appetite. Having said all of that, we are quite positive to what could happen, especially in Bolivia, Chile, and Peru. Let me provide you more detail. It's not only because of the changing governments and upcoming governments being more pro-market or whatever. That's definitely relevant. More relevant than that is what's going on with commodity prices, specifically copper and lithium and gold in the case of Peru. Copper prices, and you guys or your banks know more than we do, copper prices should stay at high levels for a long period because of the investments that are being done in data centers and that data centers consume a lot of energy. Lithium, it's a matter of the transition, sorry, to electric vehicles and so on. Gold is like a hedge to the dollar, basically. We are positive on that. Both Chile and Bolivia are very relevant in lithium reserves. Both Chile and Peru are really relevant in copper reserves. There are a lot of moving pieces, but the whole environment, we see a much more positive environment for the upcoming years when you compare that environment to what we have had in the last, I do not know, four or five years in these three countries. We are happy to hear. Thank you so much. If I can sneak in one more question on the rates, could you give us an update on your sensitivity to rates, both U.S. dollars and soles? Thank you. Sure. Hi, Carlos. Again, we have talked about this before. We have the theoretical number of 100 basis points decrease in rates, both in soles and dollars, parallel shift. That number today is at 17 basis points. Fifteen of those come from the dollar part of the book and just two on the soles part. Again, this is a very theoretical example. As I mentioned, and I mentioned in the investor, actually, what we've seen in practice is our NIM growing while the rate in Peru has come down more than 300 basis points. The theoretical sensitivity there are those 17 basis points. We are expecting actually NIM to continue very strong and risk-adjusted NIM to grow in the coming years. Thanks for the update. Our next question comes from Marcelo Mizahi from Bradesco BBI. Please go ahead with your question. Marcelo, is it possible your phone is on mute? We will move on to our next question. We have Andres Soto from Santander. Please go ahead with your question. Good morning to all, and thank you for the presentation. My question is regarding Yape and some of the numbers that you mentioned during the call. You said you expect revenue in Yape to triple by 2028. The revenue in Yape already represents 6.5% of Credicorp total revenue. It will be fair to assume that by 2028, that number should increase to 15%, the revenue contribution from Yape. If so, and making assumptions also regarding efficiency, the contribution to the bottom line should be in excess of 20%. Is this the way that you guys look at this? Yeah. To your point, Yape is going to be a bigger contributor year-over-year for Credicorp. We are expecting it to be around the 15% mark of not necessarily revenue, but net results for Credicorp in the next three years or so. Okay. Even under that conservative assumption, Alejandro, if it represents 15% of income of earnings in 2028, currently, when you look at the four quarters, it represented less than 5%. For the full year, I would say 2.5%, something like that. You will see an earnings accretion in excess of 10% of the level that you have now. The ROE of Credicorp is already at 19%, even higher than that. The ROE by 2028 should be 21%. My point here is the 19.5% that you present as a medium-term target sounds conservative considering the potential for earnings accretion coming from Yape. Sure. No, I think your numbers make a lot of sense. We mentioned around 19.5%. Again, we have elections in all the countries in this coming year. I would say we are usually conservative in that kind of views. We're certainly going to come back and revise that at a later time when there's more certainty on the political outlook for the countries. Again, if everything works as planned, probably around 19.5% will be on the higher end of that concept, for sure. Again, we'll come and revise that later. No worries. No worries. No. I mean, we're going to be around 19.5%, we're going to be on the round to the upside more than to the downside. That's what I was trying to say. Andres, your pushback is this is Gianfranco. Your pushback is correct. Again, even though we're positive on the outlook of what could happen in the region, we're still in Latin America. Volatility is part of the game. That growth in terms of income at Yape, there are a lot of assumptions, there's execution risk, and so on. As you know us for a long time, yes, our outlook or our guidance is on the positive side. Yape may have a relevant positive impact on the upside of that. Not today, but in three years can be also a little bit of cannibalization between several vehicles. That is not relevant at all now. Yeah. That is a fair assumption, Cesar. The cannibalization will come against Mibanco. This is a business with a much higher potential for ROE. It will be even accredited if that comes to happen. You are totally right, Andres. The cannibalization should generate value rather than destroy value. Okay. Sounds good. Thank you, guys. Congratulations on the results. Thank you. Our next question comes from Alonso Aramburu from BTG. Please go ahead with your question. Yes. Hi. Good morning. Thank you for the call. Just following up on your recent comments, you mentioned that Yape is doing a pilot for the SME segment. So I'm just wondering if you can give us some color on that. How different is that to the strategy you're following compared to Mibanco? Is this targeting the same Mibanco clients? Are these different clients? Are you using reps to visit some of these clients? Just to give us some color into how you're approaching this via Yape. Good morning a lot for this Gianfranco. We're approaching Yape in a very different way, a different model than the Mibanco model. It's basically based on transactions we gather through the app. So there's basically no human contact. That said, that model is much cheaper and much more efficient than the Mibanco model. But it's an untested model. We're at the very initial stages, even though the vintages, which are not relevant yet, are performing quite well. You see that the Mibanco model is a more expensive model, but it's a very proven model with high ROEs, high NPS, and so on. Whereas Yape is an untested model. We still see that there's a lot of space. The larger one is the unbanked or underbanked. Still, Mibanco only has 20+% or low 20s market shares in the microfinance business. There's a lot of space for gaining share overall. As Cesar mentioned before, as of today, we are not worried whatsoever in terms of cannibalization between Mibanco and Yape. Maybe, I don't know, two, three years down the road, we may rethink the whole approach to the microfinance SME businesses here in Peru. Thank you, Gianfranco. Once again, if you would like to ask a question, please press star and then one. To withdraw your questions, you may press star and two. Our next question comes from Marcelo Mizahi from Bradesco BBI. Please go ahead with your question. Hello everyone. Thank you for the question. It's my first time here. Very good to be here with you. My question is regarding the insurance business. In the last couple of quarters, the loss ratios are going down on life and also in credit seguros. My question is to look forward if it is recurrent. Look forward, these loss ratios will return to the levels of 50% on life or not. Is this a new level of loss ratios to this line? Looking to the credit seguros, the same question. Thank you. Sure. Hi, Marcelo. There's been a particular effect on the survival business related to a restatement done from some pension plans on the number of people registered. The thing is, it's been an unusual positive result, and it should go back to more normalized levels going forward. Okay. Those levels are around 20%-30% loss ratios, or will they come back to 50% as they were in the last year? The short answer is what Alejandro mentioned. There's some exceptional impact on the loss ratios this quarter. Going forward to your question, is it going to be back at 50%? If I were to provide a short answer, it would be yes. A more structural answer is that the further we go into the bank assurance and life insurance business on a more retail and lower-end segment, the ratio should improve. Margins there are better. It is not that we are going to have the ratios we had this quarter, but in the medium to long run, the ratios we had in the past should be better going forward. The last one about insurance. Do you guys believe that this line will maintain the pace of growing more than the other lines? Will it generate value, add value compared to the other lines of the banks? Thank you. Yes, great question. We always talk about the financial system in Peru being underpenetrated and so on. When you see the level of penetration in insurances, that is even, I do not know if the word is worse or better. Worse in terms of the Peruvian population coverage, but better in terms of business opportunity. Going to your question, we are quite positive that that business should grow at a really high rate for the upcoming years. We are working very heavily on deploying new products, new channels, improving value propositions, and so on, so as to reach the underinsured in Peru. Okay. Thank you very much. Thank you. Ladies and gentlemen, there appear to be no further questions at this time. I would like to turn the floor back over to Mr. Gianfranco Ferrari, Chief Executive Officer, for closing remarks. Thank you. We are entering the final months of the year with strong operating foundations and a clear sense of strategic direction. I want to reiterate the core message we shared at our investor day. Our strategy is built not just to perform in favorable conditions, but to endure and thrive across cycles. Over the past four years, we've grown net income three times faster than Peru's nominal GDP, driven by the strength of our diversified business model, scalable platforms, and disciplined execution. In that context, we've raised our medium-term ROE target from around 18% to approximately 19.5%, reflecting the benefits of a more inclusive, digitally enabled business as we expand into new segments abroad in our addressable market. To get there, our strategy is focused on unlocking operating leverage and driving sustainable profitability. We will deliver high risk-adjusted NIM through a more retail-oriented loan portfolio, while increasing transactional and non-interest income from our disruptive initiatives. Together, these drivers will accelerate income growth, enhance efficiency toward the 42% level, and strengthen our ability to generate superior long-term returns. At the same time, we remain mindful of the broader context. While Peru continues to face political uncertainty, including its seventh presidential transition in under a decade, its macroeconomic institutions remain intact. This is a familiar pattern: political volatility coexisting with economic resilience. That said, political uncertainty does carry an opportunity cost. We hope that in time, greater political stability will allow the country to fully unlock its growth potential. Early signs from the new administration point to a more pragmatic tone and renewed efforts to engage the private sector. Business sentiment is gradually improving, with more companies planning to invest, hire, and expand activity in the upcoming quarters. In this environment, our focus is clear: execute with discipline, expand financial inclusion, and deliver long-term value for our shareholders and the societies we serve. Thank you for your continued trust and partnership. Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect your lines. Thank you.

Speaker 14: Good morning, everyone. I would like to welcome you to the Credicorp Ltd., third quarter 2025, conference call. A slide presentation will accompany today's webcast, which is available in the investor section of Credicorp's website. Today's conference call is being recorded. As a reminder, all participants will be in a listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation. If you would like to ask a question, please signal by pressing star and then one on your telephone keypads. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. If you are using a speakerphone, we do ask that you please make sure that the mute function is turned off to allow your signal to reach our equipment. Good morning, everyone. good morning everyone I would like to welcome you to the Credicorp Ltd., third quarter 2025, conference call. i would like to welcome you to the credicorp ltd third quarter 2025 conference call A slide presentation will accompany today's webcast, which is available in the investor section of Credicorp's website. a slide presentation will accompany today's webcast which is available in the investor section of credicorp's website Today's conference call is being recorded. today's conference call is being recorded As a reminder, all participants will be in a listen-only mode. as a reminder all participants will be in a listen-only mode There will be an opportunity for you to ask questions at the end of today's presentation. there will be an opportunity for you to ask questions at the end of today's presentation If you would like to ask a question, please signal by pressing star and then one on your telephone keypads. if you would like to ask a question please signal by pressing star and then one on your telephone keypads If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. if you have connected to the call using the hd web phone on your computer please use the keypad on your computer screen If you are using a speakerphone, we do ask that you please make sure that the mute function is turned off to allow your signal to reach our equipment. if you are using a speakerphone we do ask that you please make sure that the mute function is turned off to allow your signal to reach our equipment Now, it is my pleasure to turn the conference call over to Credicorp's IRO, Milagros Cigüeñas. You may begin. Now, it is my pleasure to turn the conference call over to Credicorp's IRO, Milagros Cigüeñas. now it is my pleasure to turn the conference call over to credicorp's iro milagros cigüeñas You may begin. you may begin

Speaker 10: Thank you and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Perez-Reyes, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Rios, Chief Risk Officer; [indiscernible], CFO of Insurance and Pensions; and Rocio Benavides, Mibanco’s Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's call will contain forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Thank you and good morning, everyone. thank you and good morning everyone Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Perez- Reyes, our Chief Financial Officer. speaking on today's call will be gianfranco ferrari our chief executive officer and alejandro perez- reyes our chief financial officer Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Rios, Chief Risk Officer; [indiscernible] , CFO of Insurance and Pensions; and Rocio Benavides, Mibanco’s Chief Financial Officer. participating in the q&a session will also be francesca raffo chief innovation officer cesar rios chief risk officer [indiscernible] cfo of insurance and pensions and rocio benavides, mibanco’s chief financial officer Before we proceed, I would like to make the following safe harbor statement. before we proceed i would like to make the following safe harbor statement Today's call will contain forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. today's call will contain forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties I refer you to the forward-looking statement section of our earnings release and recent filings with the SEC. i refer you to the forward-looking statement section of our earnings release and recent filings with the sec We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. we assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances Gianfranco Ferrari will begin the call with remarks on key messages of our recent investor day, our recent political and macro environment, and a brief overview of our quarterly results, followed by Alejandro Perez-Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for full year 2025. Gianfranco, please go ahead. Gianfranco Ferrari will begin the call with remarks on key messages of our recent investor day, our recent political and macro environment, and a brief overview of our quarterly results, followed by Alejandro Perez- Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for full year 2025. gianfranco ferrari will begin the call with remarks on key messages of our recent investor day our recent political and macro environment and a brief overview of our quarterly results followed by alejandro perez- reyes who will provide a more detailed analysis of key macroeconomic indicators our financial performance and our outlook for full year 2025 Gianfranco, please go ahead. gianfranco please go ahead

Speaker 9: Thank you, Milagros. Good morning, everyone. Thank you for joining us to review Credicorp's results for the third quarter of 2025. Just over a month ago, we had the pleasure of hosting our investor day in New York, where we marked 30 years since Credicorp's listing on the New York Stock Exchange and shared our roadmap for sustainable growth and impact. Our strategy is anchored in three key pillars. First, we are accelerating the scalability and monetization of our digital ecosystem by financially including more people and expanding the formal cashless economy. Platforms like Yape, Tenpo, and Guarda are playing a bigger role across payments, credit, and savings, and are already generating new revenue streams. Second, we're unlocking growth through business synergies across all our businesses by leveraging shared capabilities in data and AI, talent, and cross-business platforms to drive revenue diversification and efficiency. Thank you, Milagros. thank you milagros Good morning, everyone. good morning everyone Thank you for joining us to review Credicorp's results for the third quarter of 2025. thank you for joining us to review credicorp's results for the third quarter of 2025 Just over a month ago, we had the pleasure of hosting our investor day in New York, where we marked 30 years since Credicorp's listing on the New York Stock Exchange and shared our roadmap for sustainable growth and impact. just over a month ago we had the pleasure of hosting our investor day in new york where we marked 30 years since credicorp's listing on the new york stock exchange and shared our roadmap for sustainable growth and impact Our strategy is anchored in three key pillars. our strategy is anchored in three key pillars First, we are accelerating the scalability and monetization of our digital ecosystem by financially including more people and expanding the formal cashless economy. first we are accelerating the scalability and monetization of our digital ecosystem by financially including more people and expanding the formal cashless economy Platforms like Yape, Tenpo, and Guarda are playing a bigger role across payments, credit, and savings, and are already generating new revenue streams. platforms like yape tenpo and guarda are playing a bigger role across payments credit and savings and are already generating new revenue streams Second, we're unlocking growth through business synergies across all our businesses by leveraging shared capabilities in data and AI, talent, and cross-business platforms to drive revenue diversification and efficiency. second we're unlocking growth through business synergies across all our businesses by leveraging shared capabilities in data and ai talent and cross-business platforms to drive revenue diversification and efficiency Third, we're executing with discipline with a focus on profitability thresholds, capital allocation, and long-term value creation across both our core and disruptive initiatives. We also reaffirm our medium-term target, an ROE of 19.5%, and an efficiency ratio around 42% over a three to four-year period. These goals are underpinned by scalable platforms, improving asset quality, and disciplined growth. Before turning to the quarter's results, let me take a moment to acknowledge the recent political developments in Peru and macro conditions across the markets where we operate. Late on October 9th, Peru's Congress voted to impeach President Dina Boluarte, citing permanent moral incapacity. Shortly after, the head of Congress, Jose Jeri, was sworn in as president. This follows a period of low approval ratings and growing public frustration with crime and governance. Third, we're executing with discipline with a focus on profitability thresholds, capital allocation, and long-term value creation across both our core and disruptive initiatives. third we're executing with discipline with a focus on profitability thresholds capital allocation and long-term value creation across both our core and disruptive initiatives We also reaffirm our medium-term target, an ROE of 19.5%, and an efficiency ratio around 42% over a three to four-year period. we also reaffirm our medium-term target an roe of 19.5% and an efficiency ratio around 42% over a three to four-year period These goals are underpinned by scalable platforms, improving asset quality, and disciplined growth. these goals are underpinned by scalable platforms improving asset quality and disciplined growth Before turning to the quarter's results, let me take a moment to acknowledge the recent political developments in Peru and macro conditions across the markets where we operate. before turning to the quarter's results let me take a moment to acknowledge the recent political developments in peru and macro conditions across the markets where we operate Late on October 9th, Peru's Congress voted to impeach President Dina Boluarte , citing permanent moral incapacity. late on october 9th peru's congress voted to impeach president dina boluarte citing permanent moral incapacity Shortly after, the head of Congress, Jose Jeri, was sworn in as president. shortly after the head of congress jose jeri was sworn in as president This follows a period of low approval ratings and growing public frustration with crime and governance. this follows a period of low approval ratings and growing public frustration with crime and governance While abrupt leadership transitions have unfortunately become part of the Peruvian landscape, the country has also demonstrated a long history of economic resilience and institutional continuity. At Credicorp, we've built our strategy and operating model for resilience. Our geographic and business diversification, strong capital and liquidity position, and disciplined risk management allow us to stay focused on delivery, even as the external environment shifts. Over the past 30 years, as a listed company, we've generated a novel total shareholder return above 14%, consistently outperforming our regional peers. That track record reflects more than strong financials. It speaks to a business model built to navigate uncertainty, decoupled from macro cycles, and anchored in long-term value creation. That's why, when events like recent political changes unfold, we remain grounded and focused on what we can control. As always, we're monitoring developments closely. While abrupt leadership transitions have unfortunately become part of the Peruvian landscape, the country has also demonstrated a long history of economic resilience and institutional continuity. while abrupt leadership transitions have unfortunately become part of the peruvian landscape the country has also demonstrated a long history of economic resilience and institutional continuity At Credicorp, we've built our strategy and operating model for resilience. at credicorp we've built our strategy and operating model for resilience Our geographic and business diversification, strong capital and liquidity position, and disciplined risk management allow us to stay focused on delivery, even as the external environment shifts. our geographic and business diversification strong capital and liquidity position and disciplined risk management allow us to stay focused on delivery even as the external environment shifts Over the past 30 years, as a listed company, we've generated a novel total shareholder return above 14%, consistently outperforming our regional peers. over the past 30 years as a listed company we've generated a novel total shareholder return above 14% consistently outperforming our regional peers That track record reflects more than strong financials. that track record reflects more than strong financials It speaks to a business model built to navigate uncertainty, decoupled from macro cycles, and anchored in long-term value creation. it speaks to a business model built to navigate uncertainty decoupled from macro cycles and anchored in long-term value creation That's why, when events like recent political changes unfold, we remain grounded and focused on what we can control. that's why when events like recent political changes unfold we remain grounded and focused on what we can control As always, we're monitoring developments closely. as always we're monitoring developments closely The macroeconomic environment during the quarter was relatively stable, with key indicators pointing to a gradual recovery across the region. In Peru, GDP growth for 2025 is now projected at 3.4%, up slightly above 3%. This revision is driven by higher-than-expected export prices and a boost to consumption following the eighth pension fund withdrawal. Domestic demand is forecast to grow nearly 6%. Its fastest pace in over a decade outside the pandemic rebound. Driven by a more advanced economic cycle, record terms of trade control inflation, supporting real wages and rising trade demand. These trends point to improving business conditions, with mining investments outlook strengthened by favorable export prices and new project ramp-ups. Despite the upcoming 2026 elections, we expect GDP growth to remain resilient, between 3%-3.5%, largely supported by sustained gains in terms of trade. The macroeconomic environment during the quarter was relatively stable, with key indicators pointing to a gradual recovery across the region. the macroeconomic environment during the quarter was relatively stable with key indicators pointing to a gradual recovery across the region In Peru, GDP growth for 2025 is now projected at 3.4%, up slightly above 3%. in peru gdp growth for 2025 is now projected at 3.4% up slightly above 3% This revision is driven by higher-than-expected export prices and a boost to consumption following the eighth pension fund withdrawal. this revision is driven by higher-than-expected export prices and a boost to consumption following the eighth pension fund withdrawal Domestic demand is forecast to grow nearly 6%. domestic demand is forecast to grow nearly 6% Its fastest pace in over a decade outside the pandemic rebound. its fastest pace in over a decade outside the pandemic rebound Driven by a more advanced economic cycle, record terms of trade control inflation, supporting real wages and rising trade demand. driven by a more advanced economic cycle record terms of trade control inflation supporting real wages and rising trade demand These trends point to improving business conditions, with mining investments outlook strengthened by favorable export prices and new project ramp-ups. these trends point to improving business conditions with mining investments outlook strengthened by favorable export prices and new project ramp-ups Despite the upcoming 2026 elections, we expect GDP growth to remain resilient, between 3%-3.5%, largely supported by sustained gains in terms of trade. despite the upcoming 2026 elections we expect gdp growth to remain resilient between 3%-3.5% largely supported by sustained gains in terms of trade With inflation forecasted at 1.8% for 2025 and 2% for 2026, it remains comfortably within the central bank's 1%-3% target range. In September, the Central Bank cut its policy rate for the third time this year to 4.25%, bringing it close to a neutral level. This easing cycle is already supporting trade growth and private consumption. FX markets and external balances also remain stable, supported by high commodity prices. In Chile, GDP growth is driven by favorable terms of trade, mining investment, and resilient consumption, with a more broad market outlook boosting medium-term expectations. Colombia's GDP is expected to grow 2.3% in 2025, up from just 1.6% in 2024, though fiscal pressures keep sentiment cautious. In Bolivia, economic adjustment challenges remain, but Rodrigo Paz's elections end two decades of mass rule, raising hopes for a more pragmatic, reform-oriented economic agenda. With inflation forecasted at 1.8% for 2025 and 2% for 2026, it remains comfortably within the central bank's 1%-3% target range. with inflation forecasted at 1.8% for 2025 and 2% for 2026 it remains comfortably within the central bank's 1%-3% target range In September, the Central Bank cut its policy rate for the third time this year to 4.25%, bringing it close to a neutral level. in september the central bank cut its policy rate for the third time this year to 4.25% bringing it close to a neutral level This easing cycle is already supporting trade growth and private consumption. this easing cycle is already supporting trade growth and private consumption FX markets and external balances also remain stable, supported by high commodity prices. fx markets and external balances also remain stable supported by high commodity prices In Chile, GDP growth is driven by favorable terms of trade, mining investment, and resilient consumption, with a more broad market outlook boosting medium-term expectations. in chile gdp growth is driven by favorable terms of trade mining investment and resilient consumption with a more broad market outlook boosting medium-term expectations Colombia's GDP is expected to grow 2.3% in 2025, up from just 1.6% in 2024, though fiscal pressures keep sentiment cautious. colombia's gdp is expected to grow 2.3% in 2025 up from just 1.6% in 2024 though fiscal pressures keep sentiment cautious In Bolivia, economic adjustment challenges remain, but Rodrigo Paz's elections end two decades of mass rule, raising hopes for a more pragmatic, reform-oriented economic agenda. in bolivia economic adjustment challenges remain but rodrigo paz's elections end two decades of mass rule raising hopes for a more pragmatic reform-oriented economic agenda All in all, we continue to navigate a dynamic external environment with prudence, agility, and a focused approach to the areas where we can drive long-term value. With that context, let me now walk you through the key results of the third quarter. We had another strong quarter with robust performance across our core businesses and consistent delivery on our strategic priorities. These results drove an ROE of 19.6%, anchored in healthy operations and a prudent risk posture. Universal Banking and Insurance and Pensions delivered very strong results, while Microfinance continued progressing steadily towards its medium-term profitability target. Fee-based and transactional income also grew, underscoring the strength and diversity of our platform. Our Innovation portfolio contributed 7.4% of our risk-adjusted revenues, keeping us firmly on track to our 10% target for 2026. Turning to trade activity, dynamics improved, and FX-neutral loan growth accelerated to 7% year-over-year. All in all, we continue to navigate a dynamic external environment with prudence, agility, and a focused approach to the areas where we can drive long-term value. all in all we continue to navigate a dynamic external environment with prudence agility and a focused approach to the areas where we can drive long-term value With that context, let me now walk you through the key results of the third quarter. with that context let me now walk you through the key results of the third quarter We had another strong quarter with robust performance across our core businesses and consistent delivery on our strategic priorities. we had another strong quarter with robust performance across our core businesses and consistent delivery on our strategic priorities These results drove an ROE of 19.6%, anchored in healthy operations and a prudent risk posture. these results drove an roe of 19.6% anchored in healthy operations and a prudent risk posture Universal Banking and Insurance and Pensions delivered very strong results, while Microfinance continued progressing steadily towards its medium-term profitability target. universal banking and insurance and pensions delivered very strong results while microfinance continued progressing steadily towards its medium-term profitability target Fee-based and transactional income also grew, underscoring the strength and diversity of our platform. fee-based and transactional income also grew underscoring the strength and diversity of our platform Our Innovation portfolio contributed 7.4% of our risk-adjusted revenues, keeping us firmly on track to our 10% target for 2026. our innovation portfolio contributed 7.4% of our risk-adjusted revenues keeping us firmly on track to our 10% target for 2026 Turning to trade activity, dynamics improved, and FX-neutral loan growth accelerated to 7% year-over-year. turning to trade activity dynamics improved and fx-neutral loan growth accelerated to 7% year-over-year Origination pipelines remained healthy, particularly in Retail Banking and Microfinance, positioning us for further momentum in the fourth quarter. The positive trade momentum also supported margins. Risk-adjusted NIM stood at 5.5% in year-to-date figures, supported by better asset quality and our structurally efficient low-cost funding base. On the deposit side, we raised the share of demand and saving accounts to 39.5%, a direct reflection of our digital engagement strategy and the trust we've earned from our clients. Asset quality also continued to trend favorably, benefiting from enhanced origination standards, refined risk-based pricing, and stronger collection execution. Lastly, from an operational standpoint, our efficiency ratio came in at 46.4%, well within our expected range, reflecting the leverage in our digital capabilities and our disciplined cost management. Capital levels remained strong across all businesses. Origination pipelines remained healthy, particularly in Retail Banking and Microfinance, positioning us for further momentum in the fourth quarter. origination pipelines remained healthy particularly in retail banking and microfinance positioning us for further momentum in the fourth quarter The positive trade momentum also supported margins. the positive trade momentum also supported margins Risk-adjusted NIM stood at 5.5% in year-to-date figures, supported by better asset quality and our structurally efficient low-cost funding base. risk-adjusted nim stood at 5.5% in year-to-date figures supported by better asset quality and our structurally efficient low-cost funding base On the deposit side, we raised the share of demand and saving accounts to 39.5%, a direct reflection of our digital engagement strategy and the trust we've earned from our clients. on the deposit side we raised the share of demand and saving accounts to 39.5% a direct reflection of our digital engagement strategy and the trust we've earned from our clients Asset quality also continued to trend favorably, benefiting from enhanced origination standards, refined risk-based pricing, and stronger collection execution. asset quality also continued to trend favorably benefiting from enhanced origination standards refined risk-based pricing and stronger collection execution Lastly, from an operational standpoint, our efficiency ratio came in at 46.4%, well within our expected range, reflecting the leverage in our digital capabilities and our disciplined cost management. lastly from an operational standpoint our efficiency ratio came in at 46.4% well within our expected range reflecting the leverage in our digital capabilities and our disciplined cost management Capital levels remained strong across all businesses. capital levels remained strong across all businesses With that, I'll turn it over to Alejandro to discuss our results and provide more insight into our operational and financial performance. Alejandro, please go ahead. With that, I'll turn it over to Alejandro to discuss our results and provide more insight into our operational and financial performance. with that i'll turn it over to alejandro to discuss our results and provide more insight into our operational and financial performance Alejandro, please go ahead. alejandro please go ahead

Speaker 2: Thank you, Gianfranco, and good morning, everyone. This quarter's 19.6% ROE reflects sustained momentum in our core businesses and the increasing contribution of our innovation portfolio. We revalued Bolivia's balance sheet using a more market-reflective exchange rate, which generated an accounting year-over-year contraction of 2.1% in Credicorp's total assets this quarter. As I discussed the quarter highlights, I will focus on the year-over-year operating trends. Loans measured in quarter-end balances increased 1.5%, negatively impacted by the revaluation of Bolivia's balance sheet and the depreciation in BCP's dollar portfolio. Excluding these effects, FX-neutral loan growth for the quarter was 7%. This increase was driven primarily by BCP, mainly through mortgages and consumer loans in retail banking, and by Mibanco. Asset quality has improved materially year-over-year. NPLs contracted across the board and Credicorp's NPL Ratio stood at 4.8% this quarter. Thank you, Gianfranco, and good morning, everyone. thank you gianfranco and good morning everyone This quarter's 19.6% ROE reflects sustained momentum in our core businesses and the increasing contribution of our innovation portfolio. this quarter's 19.6% roe reflects sustained momentum in our core businesses and the increasing contribution of our innovation portfolio We revalued Bolivia's balance sheet using a more market-reflective exchange rate, which generated an accounting year-over-year contraction of 2.1% in Credicorp's total assets this quarter. we revalued bolivia's balance sheet using a more market-reflective exchange rate which generated an accounting year-over-year contraction of 2.1% in credicorp's total assets this quarter As I discussed the quarter highlights, I will focus on the year-over-year operating trends. as i discussed the quarter highlights i will focus on the year-over-year operating trends Loans measured in quarter-end balances increased 1.5%, negatively impacted by the revaluation of Bolivia's balance sheet and the depreciation in BCP's dollar portfolio. loans measured in quarter-end balances increased 1.5% negatively impacted by the revaluation of bolivia's balance sheet and the depreciation in bcp's dollar portfolio Excluding these effects, FX-neutral loan growth for the quarter was 7%. excluding these effects fx-neutral loan growth for the quarter was 7% This increase was driven primarily by BCP, mainly through mortgages and consumer loans in retail banking, and by Mibanco. this increase was driven primarily by bcp mainly through mortgages and consumer loans in retail banking and by mibanco Asset quality has improved materially year-over-year. asset quality has improved materially year-over-year NPLs contracted across the board and Credicorp's NPL Ratio stood at 4.8% this quarter. npls contracted across the board and credicorp's npl ratio stood at 4.8% this quarter The cost of risk fell to 1.7% on the back of fortified risk management and supported by improvements in payment performance and in the Peruvian economy. Net interest income increased 2.7%, spurred by a contraction in interest expenses after interest rates fell and low-cost deposits expanded and accounted for 58.1% of the funding base. In this context, NIM increased to stand at 6.6%. Other core income grew 11.9%. Fee income increased 8.2%, boosted by transactional activity at Yape and BCP. Gains on FX transactions rose 23.4% through higher volumes at BCP. Lastly, the insurance underwriting result grew 33.1%, reflecting a stronger insurance service result in the life business. On the efficiency front, our cost-to-income ratio stood within guidance at 46.4%. Next slide, please. Peru's economic outlook remains positive despite former President Boluarte's impeachment. The cost of risk fell to 1.7% on the back of fortified risk management and supported by improvements in payment performance and in the Peruvian economy. the cost of risk fell to 1.7% on the back of fortified risk management and supported by improvements in payment performance and in the peruvian economy Net interest income increased 2.7%, spurred by a contraction in interest expenses after interest rates fell and low-cost deposits expanded and accounted for 58.1% of the funding base. net interest income increased 2.7% spurred by a contraction in interest expenses after interest rates fell and low-cost deposits expanded and accounted for 58.1% of the funding base In this context, NIM increased to stand at 6.6%. in this context nim increased to stand at 6.6% Other core income grew 11.9%. other core income grew 11.9% Fee income increased 8.2%, boosted by transactional activity at Yape and BCP. fee income increased 8.2% boosted by transactional activity at yape and bcp Gains on FX transactions rose 23.4% through higher volumes at BCP. gains on fx transactions rose 23.4% through higher volumes at bcp Lastly, the insurance underwriting result grew 33.1%, reflecting a stronger insurance service result in the life business. lastly the insurance underwriting result grew 33.1% reflecting a stronger insurance service result in the life business On the efficiency front, our cost-to-income ratio stood within guidance at 46.4%. on the efficiency front our cost-to-income ratio stood within guidance at 46.4% Next slide, please. next slide please Peru's economic outlook remains positive despite former President Boluarte's impeachment. peru's economic outlook remains positive despite former president boluarte's impeachment So far, there has been no significant impact on key financial variables such as interest rates and the exchange rate. The pace of GDP growth accelerated in the third quarter to stand around 3.5% year-over-year. Domestic demand continued to outpace overall GDP growth, as it has since mid-2024, expanding at a robust 6% for the fourth consecutive quarter. This sustained momentum is attributable to the mid-cycle phase of the economy and to the fact that the terms of trade are at the most favorable level seen in the past 75 years. High-frequency indicators continue to point to robust economic activity driven by a steady recovery in employment and real wages. In terms of private investment, business expectations, one of its key drivers, remain in optimistic territory. Meanwhile, core proxies such as heavy-duty vehicle sales, capital goods imports, and terms of trade continue to grow at a double-digit pace. So far, there has been no significant impact on key financial variables such as interest rates and the exchange rate. so far there has been no significant impact on key financial variables such as interest rates and the exchange rate The pace of GDP growth accelerated in the third quarter to stand around 3.5% year-over-year. the pace of gdp growth accelerated in the third quarter to stand around 3.5% year-over-year Domestic demand continued to outpace overall GDP growth, as it has since mid-2024, expanding at a robust 6% for the fourth consecutive quarter. domestic demand continued to outpace overall gdp growth as it has since mid-2024 expanding at a robust 6% for the fourth consecutive quarter This sustained momentum is attributable to the mid-cycle phase of the economy and to the fact that the terms of trade are at the most favorable level seen in the past 75 years. this sustained momentum is attributable to the mid-cycle phase of the economy and to the fact that the terms of trade are at the most favorable level seen in the past 75 years High-frequency indicators continue to point to robust economic activity driven by a steady recovery in employment and real wages. high-frequency indicators continue to point to robust economic activity driven by a steady recovery in employment and real wages In terms of private investment, business expectations, one of its key drivers, remain in optimistic territory. in terms of private investment business expectations one of its key drivers remain in optimistic territory Meanwhile, core proxies such as heavy-duty vehicle sales, capital goods imports, and terms of trade continue to grow at a double-digit pace. meanwhile core proxies such as heavy-duty vehicle sales capital goods imports and terms of trade continue to grow at a double-digit pace We revised our year-end GDP growth forecast upward from slightly above 3% to 3.4%, based on two main factors. First, export prices for gold, copper, and silver, which together account for half of Peru's total exports, have risen significantly faster than expected, driving terms of trade to record highs. Second, the eighth pension fund withdrawal is expected to boost private spending and support household consumption. We expect economic activity to remain strong throughout the coming year, with GDP growth projected in the 3%-3.5% range, despite pending elections in 2026. Next slide, please. The Federal Reserve lowered its policy rate for a second consecutive meeting in response to signs of a cooling labor market. Fed futures have moved, and now the probability of one additional rate cut in December is evenly split. We revised our year-end GDP growth forecast upward from slightly above 3% to 3.4%, based on two main factors. we revised our year-end gdp growth forecast upward from slightly above 3% to 3.4% based on two main factors First, export prices for gold, copper, and silver, which together account for half of Peru's total exports, have risen significantly faster than expected, driving terms of trade to record highs. first export prices for gold copper and silver which together account for half of peru's total exports have risen significantly faster than expected driving terms of trade to record highs Second, the eighth pension fund withdrawal is expected to boost private spending and support household consumption. second the eighth pension fund withdrawal is expected to boost private spending and support household consumption We expect economic activity to remain strong throughout the coming year, with GDP growth projected in the 3%-3.5% range, despite pending elections in 2026. we expect economic activity to remain strong throughout the coming year with gdp growth projected in the 3%-3.5% range despite pending elections in 2026 Next slide, please. next slide please The Federal Reserve lowered its policy rate for a second consecutive meeting in response to signs of a cooling labor market. the federal reserve lowered its policy rate for a second consecutive meeting in response to signs of a cooling labor market Fed futures have moved, and now the probability of one additional rate cut in December is evenly split. fed futures have moved and now the probability of one additional rate cut in december is evenly split In Peru, annual inflation has remained below 2% for 11 consecutive months, which constitutes one of the lowest prints for both advanced and emerging economies. Following the 25 basis points rate cut in September, which brought the policy rate down to 4.25%, the central bank is close to what it considers the neutral rate. In Colombia, inflation recently accelerated to 5.2% year-over-year in September, which remains above the upper bound of the target range of 4%. Inflation concerns, coupled with fiscal challenges, have led the central bank to keep its policy rate stable at 9.25% during the last three meetings. In Chile, the central bank held its policy rate steady at 4.75% during its most recent meeting. Inflation slowed to 3.4% year-over-year in October, the lowest rate in more than a year, boosting expectations for a December rate cut. In Peru, annual inflation has remained below 2% for 11 consecutive months, which constitutes one of the lowest prints for both advanced and emerging economies. in peru annual inflation has remained below 2% for 11 consecutive months which constitutes one of the lowest prints for both advanced and emerging economies Following the 25 basis points rate cut in September, which brought the policy rate down to 4.25%, the central bank is close to what it considers the neutral rate. following the 25 basis points rate cut in september which brought the policy rate down to 4.25% the central bank is close to what it considers the neutral rate In Colombia, inflation recently accelerated to 5.2% year-over-year in September, which remains above the upper bound of the target range of 4%. in colombia inflation recently accelerated to 5.2% year-over-year in september which remains above the upper bound of the target range of 4% Inflation concerns, coupled with fiscal challenges, have led the central bank to keep its policy rate stable at 9.25% during the last three meetings. inflation concerns coupled with fiscal challenges have led the central bank to keep its policy rate stable at 9.25% during the last three meetings In Chile, the central bank held its policy rate steady at 4.75% during its most recent meeting. in chile the central bank held its policy rate steady at 4.75% during its most recent meeting Inflation slowed to 3.4% year-over-year in October, the lowest rate in more than a year, boosting expectations for a December rate cut. inflation slowed to 3.4% year-over-year in october the lowest rate in more than a year boosting expectations for a december rate cut This Sunday, Chile will hold its general election, and expectations for a more pro-market administration are seen as supportive for future growth. Next slide, please. BCP maintains a solid ROE of 25.6%, which reflects resilient margins, diversified revenue streams, and low cost of risk. On a quarter-over-quarter basis, total loans measured in quarter-end balances rose 1.7%. In FX-neutral terms, growth reached 2.4%, mainly driven by retail banking segments, which grew 3%, while the whole banking portfolio increased 1.8%. NIM stood at 6.1%, increasing 10 basis points on the tail of a shift in the asset mix. Other core income grew 1.6%, fueled by fee income from Yape. NPL volumes fell 0.9%. In retail banking, NPL volumes declined, led by individuals and, as a close second, by SMEs. Provisions rose 9.6%, reflecting both the recurrent dynamics of retail banking and specific impacts within wholesale banking. This Sunday, Chile will hold its general election, and expectations for a more pro-market administration are seen as supportive for future growth. this sunday chile will hold its general election and expectations for a more pro-market administration are seen as supportive for future growth Next slide, please. next slide please BCP maintains a solid ROE of 25.6%, which reflects resilient margins, diversified revenue streams, and low cost of risk. bcp maintains a solid roe of 25.6% which reflects resilient margins diversified revenue streams and low cost of risk On a quarter-over-quarter basis, total loans measured in quarter-end balances rose 1.7%. on a quarter-over-quarter basis total loans measured in quarter-end balances rose 1.7% In FX-neutral terms, growth reached 2.4%, mainly driven by retail banking segments, which grew 3%, while the whole banking portfolio increased 1.8%. in fx-neutral terms growth reached 2.4% mainly driven by retail banking segments which grew 3% while the whole banking portfolio increased 1.8% NIM stood at 6.1%, increasing 10 basis points on the tail of a shift in the asset mix. nim stood at 6.1% increasing 10 basis points on the tail of a shift in the asset mix Other core income grew 1.6%, fueled by fee income from Yape. other core income grew 1.6% fueled by fee income from yape NPL volumes fell 0.9%. npl volumes fell 0.9% In retail banking, NPL volumes declined, led by individuals and, as a close second, by SMEs. in retail banking npl volumes declined led by individuals and as a close second by smes Provisions rose 9.6%, reflecting both the recurrent dynamics of retail banking and specific impacts within wholesale banking. provisions rose 9.6% reflecting both the recurrent dynamics of retail banking and specific impacts within wholesale banking In retail banking, provisions for individuals remained stable, while provisions for SMEs rose slightly due to a base effect stemming from higher reversals last quarter linked to increased debt repayments in SME business. In wholesale banking, there was a relevant increase in the credit risk of one corporate client, which is currently paying up to date. The cost of risk edged up to 1.3%, driven by the dynamics of provisions and loan growth, which were supported by favorable macroeconomic conditions in Peru. In this context, BCP's risk-adjusted NIM stood at 5.2%. From a year-over-year perspective, I would like to highlight the following dynamics. Loan balances grew 4.6%. However, loan growth in FX-neutral terms reached 7%, led primarily by retail segments and closely followed by wholesale loans. Retail segments and consumer loans, in particular, were favored by positive economic conditions, while lower interest rates boosted growth in mortgages. In retail banking, provisions for individuals remained stable, while provisions for SMEs rose slightly due to a base effect stemming from higher reversals last quarter linked to increased debt repayments in SME business. in retail banking provisions for individuals remained stable while provisions for smes rose slightly due to a base effect stemming from higher reversals last quarter linked to increased debt repayments in sme business In wholesale banking, there was a relevant increase in the credit risk of one corporate client, which is currently paying up to date. in wholesale banking there was a relevant increase in the credit risk of one corporate client which is currently paying up to date The cost of risk edged up to 1.3%, driven by the dynamics of provisions and loan growth, which were supported by favorable macroeconomic conditions in Peru. the cost of risk edged up to 1.3% driven by the dynamics of provisions and loan growth which were supported by favorable macroeconomic conditions in peru In this context, BCP's risk-adjusted NIM stood at 5.2%. in this context bcp's risk-adjusted nim stood at 5.2% From a year-over-year perspective, I would like to highlight the following dynamics. from a year-over-year perspective i would like to highlight the following dynamics Loan balances grew 4.6%. loan balances grew 4.6% However, loan growth in FX-neutral terms reached 7%, led primarily by retail segments and closely followed by wholesale loans. however loan growth in fx-neutral terms reached 7% led primarily by retail segments and closely followed by wholesale loans Retail segments and consumer loans, in particular, were favored by positive economic conditions, while lower interest rates boosted growth in mortgages. retail segments and consumer loans in particular were favored by positive economic conditions while lower interest rates boosted growth in mortgages In wholesale banking, middle-market loans were up this quarter, bolstered by short-term lending to agribusinesses. NPLs contracted across all BCP segments, primarily in SMEs and individuals. In individuals, the reduction in NPLs was attributable to repayments, which were fueled by higher liquidity, and to improvements in loan origination and debt collections management. NIM decreased 6 basis points, riding a downward trend in the yield on interest-earning assets and partially offset by a lower funding cost, both in line with market rate trends. The cost of risk fell across retail banking segments, driven by improvements in payment performance after low-risk vintages increased their share of total loans, supported by a strengthening economic backdrop. Other core income rose 10.8%, fueled primarily by fee income, which reflected solid results in Yape and BCP. In wholesale banking, middle-market loans were up this quarter, bolstered by short-term lending to agribusinesses. in wholesale banking middle-market loans were up this quarter bolstered by short-term lending to agribusinesses NPLs contracted across all BCP segments, primarily in SMEs and individuals. npls contracted across all bcp segments primarily in smes and individuals In individuals, the reduction in NPLs was attributable to repayments, which were fueled by higher liquidity, and to improvements in loan origination and debt collections management. in individuals the reduction in npls was attributable to repayments which were fueled by higher liquidity and to improvements in loan origination and debt collections management NIM decreased 6 basis points, riding a downward trend in the yield on interest-earning assets and partially offset by a lower funding cost, both in line with market rate trends. nim decreased 6 basis points riding a downward trend in the yield on interest-earning assets and partially offset by a lower funding cost both in line with market rate trends The cost of risk fell across retail banking segments, driven by improvements in payment performance after low-risk vintages increased their share of total loans, supported by a strengthening economic backdrop. the cost of risk fell across retail banking segments driven by improvements in payment performance after low-risk vintages increased their share of total loans supported by a strengthening economic backdrop Other core income rose 10.8%, fueled primarily by fee income, which reflected solid results in Yape and BCP. other core income rose 10.8% fueled primarily by fee income which reflected solid results in yape and bcp Gains on FX transactions, which grew alongside an uptick in transactional activity in retail segments, were a secondary driver of growth in other core income. The ratio for other core income to assets maintained its upward trend, which is the result of our initiative to diversify BCP's income streams. It is worth noting that this evolution reflects our investment in technological capabilities to bolster our transactional platform. The efficiency ratio stood at 38.7% at the end of the third quarter. Growth in operating expenses was spurred by provisions for variable compensation and hiring of digital talent for strategic projects. Next slide, please. Yape continues to generate value across the Credicorp ecosystem with 15.5 million monthly active users, which is the equivalent of 82% of the economically active population. We aim to expand this user base to 18 million by 2028. Current users conduct an average of 58.5 transactions per month. Gains on FX transactions, which grew alongside an uptick in transactional activity in retail segments, were a secondary driver of growth in other core income. gains on fx transactions which grew alongside an uptick in transactional activity in retail segments were a secondary driver of growth in other core income The ratio for other core income to assets maintained its upward trend, which is the result of our initiative to diversify BCP's income streams. the ratio for other core income to assets maintained its upward trend which is the result of our initiative to diversify bcp's income streams It is worth noting that this evolution reflects our investment in technological capabilities to bolster our transactional platform. it is worth noting that this evolution reflects our investment in technological capabilities to bolster our transactional platform The efficiency ratio stood at 38.7% at the end of the third quarter. the efficiency ratio stood at 38.7% at the end of the third quarter Growth in operating expenses was spurred by provisions for variable compensation and hiring of digital talent for strategic projects. growth in operating expenses was spurred by provisions for variable compensation and hiring of digital talent for strategic projects Next slide, please. next slide please Yape continues to generate value across the Credicorp ecosystem with 15.5 million monthly active users, which is the equivalent of 82% of the economically active population. yape continues to generate value across the credicorp ecosystem with 15.5 million monthly active users which is the equivalent of 82% of the economically active population We aim to expand this user base to 18 million by 2028. we aim to expand this user base to 18 million by 2028 Current users conduct an average of 58.5 transactions per month. current users conduct an average of 58.5 transactions per month Only 12% of these transactions generated revenue, indicating considerable room for further monetization. From a financial standpoint, revenue per monthly active user reached PEN 7.4, while expenses per mile stood at PEN 5, reflecting continued improvements in profitability and operational scalability. Although marketing campaigns aimed at driving feature adoption led to higher expenses in the quarter, no material shifts in cost structure were observed. In the last quarter, revenue grew almost two times year-over-year. Looking ahead, expect revenues to triple by 2028, primarily driven by higher revenue per mile as users adopt more monetizable features. Payments remain the dominant contributor, accounting for 53% of Yape's revenue, fueled by strong growth in QR, bill payments, and checkout functionalities. Lending continues to gain momentum, now accounting for 20% of Yape's revenue. To date, over 3 million clients have received disbursements, 1 million of which constituted first-ever formal loans. Only 12% of these transactions generated revenue, indicating considerable room for further monetization. only 12% of these transactions generated revenue indicating considerable room for further monetization From a financial standpoint, revenue per monthly active user reached PEN 7.4, while expenses per mile stood at PEN 5, reflecting continued improvements in profitability and operational scalability. from a financial standpoint revenue per monthly active user reached pen 7.4 while expenses per mile stood at pen 5 reflecting continued improvements in profitability and operational scalability Although marketing campaigns aimed at driving feature adoption led to higher expenses in the quarter, no material shifts in cost structure were observed. although marketing campaigns aimed at driving feature adoption led to higher expenses in the quarter no material shifts in cost structure were observed In the last quarter, revenue grew almost two times year-over-year. in the last quarter revenue grew almost two times year-over-year Looking ahead, expect revenues to triple by 2028, primarily driven by higher revenue per mile as users adopt more monetizable features. looking ahead expect revenues to triple by 2028 primarily driven by higher revenue per mile as users adopt more monetizable features Payments remain the dominant contributor, accounting for 53% of Yape's revenue, fueled by strong growth in QR, bill payments, and checkout functionalities. payments remain the dominant contributor accounting for 53% of yape's revenue fueled by strong growth in qr bill payments and checkout functionalities Lending continues to gain momentum, now accounting for 20% of Yape's revenue. lending continues to gain momentum now accounting for 20% of yape's revenue To date, over 3 million clients have received disbursements, 1 million of which constituted first-ever formal loans. to date over 3 million clients have received disbursements 1 million of which constituted first-ever formal loans Looking ahead, we aim to expand our disbursed client base to 8 million by 2028 as we deepen our understanding of user payment behavior and refine our risk management capabilities. In e-commerce, GMV continues to grow, driven by Yape promos and gaming, establishing a third monetization pillar. In aggregate, Yape contributed 6.6% of Credicorp's risk-adjusted revenue this quarter, advancing its mission to deepen financial inclusion, scale monetization, and strengthen its strategic role as a growth engine of Credicorp's digital ecosystem. Next slide, please. Ongoing economic recovery continues to exert a positive impact on Peru's microfinance sector, with Mibanco outperforming sector peers. In this context, Mibanco's profitability kept rising and stood at 18.8% this quarter, supported by a rebound in loan disbursements in recent quarters and strengthened credit risk management. I would like to highlight key quarter-over-quarter dynamics. Looking ahead, we aim to expand our disbursed client base to 8 million by 2028 as we deepen our understanding of user payment behavior and refine our risk management capabilities. looking ahead we aim to expand our disbursed client base to 8 million by 2028 as we deepen our understanding of user payment behavior and refine our risk management capabilities In e-commerce, GMV continues to grow, driven by Yape promos and gaming, establishing a third monetization pillar. in e-commerce gmv continues to grow driven by yape promos and gaming establishing a third monetization pillar In aggregate, Yape contributed 6.6% of Credicorp's risk-adjusted revenue this quarter, advancing its mission to deepen financial inclusion, scale monetization, and strengthen its strategic role as a growth engine of Credicorp's digital ecosystem. in aggregate yape contributed 6.6% of credicorp's risk-adjusted revenue this quarter advancing its mission to deepen financial inclusion scale monetization and strengthen its strategic role as a growth engine of credicorp's digital ecosystem Next slide, please. next slide please Ongoing economic recovery continues to exert a positive impact on Peru's microfinance sector, with Mibanco outperforming sector peers. ongoing economic recovery continues to exert a positive impact on peru's microfinance sector with mibanco outperforming sector peers In this context, Mibanco's profitability kept rising and stood at 18.8% this quarter, supported by a rebound in loan disbursements in recent quarters and strengthened credit risk management. in this context mibanco's profitability kept rising and stood at 18.8% this quarter supported by a rebound in loan disbursements in recent quarters and strengthened credit risk management I would like to highlight key quarter-over-quarter dynamics. i would like to highlight key quarter-over-quarter dynamics Loans grew 2.4% in quarter-end balances, riding an upswing in loan disbursements, which hit an all-time high in September. The NPL ratio fell for the fifth consecutive quarter to stand at 5.7%. NIM peaked at 15%, boosted by a shift in the mix towards small-ticket, higher-yield loans. In parallel, the cost of risk fell 17 basis points to stand at 5.2%, while risk-adjusted NIM reached a four-year high of 11%. From a year-over-year perspective, loans measured in quarter-end balances grew 8%. Our active pricing management, coupled with the decreasing cost of funding, helped NIM increase. The cost of risk fell 101 basis points as lower-risk vintages continued to gain traction and now account for 78% of total loans. Operating expenses remained under control, and efficiency stood at 51.4%. In this context, Mibanco's year-to-date contribution to ROE was 16%, transitioning towards our target for medium-term ROE in the low 20s. Loans grew 2.4% in quarter-end balances, riding an upswing in loan disbursements, which hit an all-time high in September. loans grew 2.4% in quarter-end balances riding an upswing in loan disbursements which hit an all-time high in september The NPL ratio fell for the fifth consecutive quarter to stand at 5.7%. the npl ratio fell for the fifth consecutive quarter to stand at 5.7% NIM peaked at 15%, boosted by a shift in the mix towards small-ticket, higher-yield loans. nim peaked at 15% boosted by a shift in the mix towards small-ticket higher-yield loans In parallel, the cost of risk fell 17 basis points to stand at 5.2%, while risk-adjusted NIM reached a four-year high of 11%. in parallel the cost of risk fell 17 basis points to stand at 5.2% while risk-adjusted nim reached a four-year high of 11% From a year-over-year perspective, loans measured in quarter-end balances grew 8%. from a year-over-year perspective loans measured in quarter-end balances grew 8% Our active pricing management, coupled with the decreasing cost of funding, helped NIM increase. our active pricing management coupled with the decreasing cost of funding helped nim increase The cost of risk fell 101 basis points as lower-risk vintages continued to gain traction and now account for 78% of total loans. the cost of risk fell 101 basis points as lower-risk vintages continued to gain traction and now account for 78% of total loans Operating expenses remained under control, and efficiency stood at 51.4%. operating expenses remained under control and efficiency stood at 51.4% In this context, Mibanco 's year-to-date contribution to ROE was 16%, transitioning towards our target for medium-term ROE in the low 20s. in this context, mibanco 's year-to-date contribution to roe was 16% transitioning towards our target for medium-term roe in the low 20s Mibanco Colombia's results continue to tick up, reflecting double-digit year-over-year loan growth, controlled risk management, and optimized efficiency, supported by a more favorable economic environment for the microfinance sector. As a result, profitability stood at 12.3% at quarter-end. Next slide, please. At the Grupo Pacifico, insurance underwriting results remained strong this quarter, supported by solid operational dynamics in both the P&C and life businesses, with ROE standing at 20.9%. On a quarterly basis, net income remained relatively stable. Insurance underwriting results rose 7% on the back of the life business, which reported a decrease in insurance service expenses that was primarily driven by a drop in claims. The EPS business also posted an improvement in its underwriting results, albeit to a lesser extent. These gains were partially offset by a decline in P&C underwriting performance impacted by higher claims. Mibanco Colombia's results continue to tick up, reflecting double-digit year-over-year loan growth, controlled risk management, and optimized efficiency, supported by a more favorable economic environment for the microfinance sector. mibanco colombia's results continue to tick up reflecting double-digit year-over-year loan growth controlled risk management and optimized efficiency supported by a more favorable economic environment for the microfinance sector As a result, profitability stood at 12.3% at quarter-end. as a result profitability stood at 12.3% at quarter-end Next slide, please. next slide please At the Grupo Pacifico, insurance underwriting results remained strong this quarter, supported by solid operational dynamics in both the P&C and life businesses, with ROE standing at 20.9%. at the grupo pacifico insurance underwriting results remained strong this quarter supported by solid operational dynamics in both the p&c and life businesses with roe standing at 20.9% On a quarterly basis, net income remained relatively stable. on a quarterly basis net income remained relatively stable Insurance underwriting results rose 7% on the back of the life business, which reported a decrease in insurance service expenses that was primarily driven by a drop in claims. insurance underwriting results rose 7% on the back of the life business which reported a decrease in insurance service expenses that was primarily driven by a drop in claims The EPS business also posted an improvement in its underwriting results, albeit to a lesser extent. the eps business also posted an improvement in its underwriting results albeit to a lesser extent These gains were partially offset by a decline in P&C underwriting performance impacted by higher claims. these gains were partially offset by a decline in p&c underwriting performance impacted by higher claims Growth in underwriting results was offset by a drop in net interest income associated with life insurance contracts. On a year-over-year basis, net income rose 23%, primarily on the back of Pacifico's full consolidation of the corporate health insurance and medical services operations. Excluding the consolidation effect, net income rose 10%. Insurance underwriting results rose for the life business, driven mainly by a decrease in claims in disability and survivorship and credit life lines, and for the P&C business, which reported growth in direct premiums in the cars and medical assistance lines. These impacts were partially offset by higher operating expenses and by an increase in the net loss on securities, which was impacted by credit downgrades on a couple of assets in the investment portfolio. Next slide, please. Profitability of our investment management and advisory business increased this quarter, with ROE standing at 17.4%. Growth in underwriting results was offset by a drop in net interest income associated with life insurance contracts. growth in underwriting results was offset by a drop in net interest income associated with life insurance contracts On a year-over-year basis, net income rose 23%, primarily on the back of Pacifico's full consolidation of the corporate health insurance and medical services operations. on a year-over-year basis net income rose 23% primarily on the back of pacifico's full consolidation of the corporate health insurance and medical services operations Excluding the consolidation effect, net income rose 10%. excluding the consolidation effect net income rose 10% Insurance underwriting results rose for the life business, driven mainly by a decrease in claims in disability and survivorship and credit life lines, and for the P&C business, which reported growth in direct premiums in the cars and medical assistance lines. insurance underwriting results rose for the life business driven mainly by a decrease in claims in disability and survivorship and credit life lines and for the p&c business which reported growth in direct premiums in the cars and medical assistance lines These impacts were partially offset by higher operating expenses and by an increase in the net loss on securities, which was impacted by credit downgrades on a couple of assets in the investment portfolio. these impacts were partially offset by higher operating expenses and by an increase in the net loss on securities which was impacted by credit downgrades on a couple of assets in the investment portfolio Next slide, please. next slide please Profitability of our investment management and advisory business increased this quarter, with ROE standing at 17.4%. profitability of our investment management and advisory business increased this quarter with roe standing at 17.4% On a quarter-over-quarter basis, core income-generating businesses delivered strong results this quarter, reflecting improved capital markets activity, particularly in the trading unit, and continued growth in wealth management and asset management, with AUMs in U.S. dollars up 6% and 14%, respectively. These dynamics were partially offset by higher operating expenses. As a result, net income increased 10%. On a year-over-year basis, net income increased by 5%, mainly due to favorable performance of the trading unit in our capital markets business and stronger treasury performance. These dynamics were partially offset by higher operating expenses. Next slide, please. Now, I would like to review Credicorp's consolidated evolution regarding quarter-over-quarter dynamics. Loan growth was fueled by retail segments, leading to a higher yield interest-earning asset mix. As a result, the yield on interest-earning assets rose 13 basis points. On a quarter-over-quarter basis, core income-generating businesses delivered strong results this quarter, reflecting improved capital markets activity, particularly in the trading unit, and continued growth in wealth management and asset management, with AUMs in U.S. dollars up 6% and 14%, respectively. on a quarter-over-quarter basis core income-generating businesses delivered strong results this quarter reflecting improved capital markets activity particularly in the trading unit and continued growth in wealth management and asset management with aums in u.s dollars up 6% and 14% respectively These dynamics were partially offset by higher operating expenses. these dynamics were partially offset by higher operating expenses As a result, net income increased 10%. as a result net income increased 10% On a year-over-year basis, net income increased by 5%, mainly due to favorable performance of the trading unit in our capital markets business and stronger treasury performance. on a year-over-year basis net income increased by 5% mainly due to favorable performance of the trading unit in our capital markets business and stronger treasury performance These dynamics were partially offset by higher operating expenses. these dynamics were partially offset by higher operating expenses Next slide, please. next slide please Now, I would like to review Credicorp's consolidated evolution regarding quarter-over-quarter dynamics. now i would like to review credicorp's consolidated evolution regarding quarter-over-quarter dynamics Loan growth was fueled by retail segments, leading to a higher yield interest-earning asset mix. loan growth was fueled by retail segments leading to a higher yield interest-earning asset mix As a result, the yield on interest-earning assets rose 13 basis points. as a result the yield on interest-earning assets rose 13 basis points On the liability side, low-cost deposits registered an increase in their share of total funding, and bond maturities triggered a decrease in interest expenses. These favorable dynamics were partially offset by an increase in the balance of time deposits at BCP. As a result, funding costs decreased 1 basis point. On a year-over-year basis, the positive impact of a higher yield interest-earning asset mix was offset by the negative impact of lower market rates. As such, the yield on interest-earning assets fell 9 basis points. On the liability side, interest rate dynamics, complemented by our competitive advantage in low-cost funding, led the funding cost to decline 25 basis points. In this context, NIM stood at 6.6%, up 9 basis points. Going forward, growth in retail lending, powered by our strengthened risk management capabilities, should sustain NIM's growth. Next slide, please. Moving on to loan portfolio quality. On the liability side, low-cost deposits registered an increase in their share of total funding, and bond maturities triggered a decrease in interest expenses. on the liability side low-cost deposits registered an increase in their share of total funding and bond maturities triggered a decrease in interest expenses These favorable dynamics were partially offset by an increase in the balance of time deposits at BCP. these favorable dynamics were partially offset by an increase in the balance of time deposits at bcp As a result, funding costs decreased 1 basis point. as a result funding costs decreased 1 basis point On a year-over-year basis, the positive impact of a higher yield interest-earning asset mix was offset by the negative impact of lower market rates. on a year-over-year basis the positive impact of a higher yield interest-earning asset mix was offset by the negative impact of lower market rates As such, the yield on interest-earning assets fell 9 basis points. as such the yield on interest-earning assets fell 9 basis points On the liability side, interest rate dynamics, complemented by our competitive advantage in low-cost funding, led the funding cost to decline 25 basis points. on the liability side interest rate dynamics complemented by our competitive advantage in low-cost funding led the funding cost to decline 25 basis points In this context, NIM stood at 6.6%, up 9 basis points. in this context nim stood at 6.6% up 9 basis points Going forward, growth in retail lending, powered by our strengthened risk management capabilities, should sustain NIM's growth. going forward growth in retail lending powered by our strengthened risk management capabilities should sustain nim's growth Next slide, please. next slide please Moving on to loan portfolio quality. moving on to loan portfolio quality Asset quality showed slight further improvement this quarter as NPL volumes continued to contract across segments, falling to levels below those reported prior to the 2023 recession. Amid ongoing economic recovery, provisions have dropped over the past 12 months due to an improvement in payment performance and successful risk management measures at both BCP and Mibanco. The positive impact of these improvements exceeded expectations, which kept provisioning levels low once again this quarter. In this context, the NPL coverage ratio rose and stood at 110.1%. Going forward, we will continue to accelerate retail origination while managing risk. In coming quarters, asset quality may improve on the back of a rising liquidity after the eighth pension fund withdrawal is rolled out from November 2025 to February 2026. Following that, we expect loan growth to recover its pace and the cost of risk to rise but remain within our appetite. Next slide, please. Asset quality showed slight further improvement this quarter as NPL volumes continued to contract across segments, falling to levels below those reported prior to the 2023 recession. asset quality showed slight further improvement this quarter as npl volumes continued to contract across segments falling to levels below those reported prior to the 2023 recession Amid ongoing economic recovery, provisions have dropped over the past 12 months due to an improvement in payment performance and successful risk management measures at both BCP and Mibanco. amid ongoing economic recovery provisions have dropped over the past 12 months due to an improvement in payment performance and successful risk management measures at both bcp and mibanco The positive impact of these improvements exceeded expectations, which kept provisioning levels low once again this quarter. the positive impact of these improvements exceeded expectations which kept provisioning levels low once again this quarter In this context, the NPL coverage ratio rose and stood at 110.1%. in this context the npl coverage ratio rose and stood at 110.1% Going forward, we will continue to accelerate retail origination while managing risk. going forward we will continue to accelerate retail origination while managing risk In coming quarters, asset quality may improve on the back of a rising liquidity after the eighth pension fund withdrawal is rolled out from November 2025 to February 2026. in coming quarters asset quality may improve on the back of a rising liquidity after the eighth pension fund withdrawal is rolled out from november 2025 to february 2026 Following that, we expect loan growth to recover its pace and the cost of risk to rise but remain within our appetite. following that we expect loan growth to recover its pace and the cost of risk to rise but remain within our appetite Next slide, please. next slide please Core income expanded 5.1% year-over-year, underscoring our ability to deliver consistent growth. Net interest income rose 2.7%, supported by a stronger funding mix and a higher-yield loan portfolio. This helped lift NIM to 6.6%, reinforcing the resilience of our margin. Other core income grew 11.9%, driven by a few momentum from Yape and BCP, and a 23.4% increase in FX gains on the back of higher volumes. As highlighted during our investor day, other core income is expected to play a growing role in Credicorp's strategy to diversify revenue sources. This includes scaling digital monetization through Yape, expanding bank assurance, accelerating growth in remittances, and deepening transactional engagement across traditional platforms. Risk-adjusted NIM rose 60 basis points year-over-year to stand at a record high of 5.5%. This evolution reflects how risk management is becoming a competitive edge that enables expansion into new market segments. Core income expanded 5.1% year-over-year, underscoring our ability to deliver consistent growth. core income expanded 5.1% year-over-year underscoring our ability to deliver consistent growth Net interest income rose 2.7%, supported by a stronger funding mix and a higher-yield loan portfolio. net interest income rose 2.7% supported by a stronger funding mix and a higher-yield loan portfolio This helped lift NIM to 6.6%, reinforcing the resilience of our margin. this helped lift nim to 6.6% reinforcing the resilience of our margin Other core income grew 11.9%, driven by a few momentum from Yape and BCP, and a 23.4% increase in FX gains on the back of higher volumes. other core income grew 11.9% driven by a few momentum from yape and bcp and a 23.4% increase in fx gains on the back of higher volumes As highlighted during our investor day, other core income is expected to play a growing role in Credicorp's strategy to diversify revenue sources. as highlighted during our investor day other core income is expected to play a growing role in credicorp's strategy to diversify revenue sources This includes scaling digital monetization through Yape, expanding bank assurance, accelerating growth in remittances, and deepening transactional engagement across traditional platforms. this includes scaling digital monetization through yape expanding bank assurance accelerating growth in remittances and deepening transactional engagement across traditional platforms Risk-adjusted NIM rose 60 basis points year-over-year to stand at a record high of 5.5%. risk-adjusted nim rose 60 basis points year-over-year to stand at a record high of 5.5% This evolution reflects how risk management is becoming a competitive edge that enables expansion into new market segments. this evolution reflects how risk management is becoming a competitive edge that enables expansion into new market segments Efficiency ratio for the first nine months of the year stood within guidance at 45.7%. Operating expenses grew 12.8%, fueled primarily by core businesses at BCP and by investments in our innovation portfolio. Growth in core expenses at BCP was driven mainly by provisions for variable compensation and higher IT expenses. Expenses for our innovation portfolio rose 16.1%, led by Yape, Tempo, and Culqi, which represented 83% of disruptive expenses in the first nine months of this year. Next slide, please. ROE for the first nine months was 20.1%, supported by solid business performance and bolstered by the extraordinary gain from the Banmedica transaction in the first quarter of the year. If we adjust for each transaction, ROE is 19.3% for the first nine months. On an accumulated basis, net income reached a record high even when excluding the gains from Banmedica's transaction. Efficiency ratio for the first nine months of the year stood within guidance at 45.7%. efficiency ratio for the first nine months of the year stood within guidance at 45.7% Operating expenses grew 12.8%, fueled primarily by core businesses at BCP and by investments in our innovation portfolio. operating expenses grew 12.8% fueled primarily by core businesses at bcp and by investments in our innovation portfolio Growth in core expenses at BCP was driven mainly by provisions for variable compensation and higher IT expenses. growth in core expenses at bcp was driven mainly by provisions for variable compensation and higher it expenses Expenses for our innovation portfolio rose 16.1%, led by Yape, Tempo, and Culqi, which represented 83% of disruptive expenses in the first nine months of this year. expenses for our innovation portfolio rose 16.1% led by yape tempo and culqi which represented 83% of disruptive expenses in the first nine months of this year Next slide, please. next slide please ROE for the first nine months was 20.1%, supported by solid business performance and bolstered by the extraordinary gain from the Banmedica transaction in the first quarter of the year. roe for the first nine months was 20.1% supported by solid business performance and bolstered by the extraordinary gain from the banmedica transaction in the first quarter of the year If we adjust for each transaction, ROE is 19.3% for the first nine months. if we adjust for each transaction roe is 19.3% for the first nine months On an accumulated basis, net income reached a record high even when excluding the gains from Banmedica's transaction. on an accumulated basis net income reached a record high even when excluding the gains from banmedica's transaction We achieved this by leveraging low cost of funding, a reduction in the cost of risk, and an increase in lending. We are committed to generating diversified and robust revenue streams as we ramp up revenues from other core income and transition toward a stronger, more resilient business model. Now, I'll move on to our guidance. Next slide, please. As previously stated, we maintain our GDP guidance as we expect GDP to grow 3.4% this year. We expect our loan book to grow around 6.5% year-over-year, measured in end-of-period balances. These figures do not consider the impact of the asset revaluation at BCP Bolivia, but do include the devaluation of the U.S. dollar against the Peruvian sol. We achieved this by leveraging low cost of funding, a reduction in the cost of risk, and an increase in lending. we achieved this by leveraging low cost of funding a reduction in the cost of risk and an increase in lending We are committed to generating diversified and robust revenue streams as we ramp up revenues from other core income and transition toward a stronger, more resilient business model. we are committed to generating diversified and robust revenue streams as we ramp up revenues from other core income and transition toward a stronger more resilient business model Now, I'll move on to our guidance. now i'll move on to our guidance Next slide, please. next slide please As previously stated, we maintain our GDP guidance as we expect GDP to grow 3.4% this year. as previously stated we maintain our gdp guidance as we expect gdp to grow 3.4% this year We expect our loan book to grow around 6.5% year-over-year, measured in end-of-period balances. we expect our loan book to grow around 6.5% year-over-year measured in end-of-period balances These figures do not consider the impact of the asset revaluation at BCP Bolivia, but do include the devaluation of the U.S. dollar against the Peruvian sol. these figures do not consider the impact of the asset revaluation at bcp bolivia but do include the devaluation of the u.s dollar against the peruvian sol Amid a more dynamic economic backdrop and strengthened origination levels in the first nine months of the year, we expect balance growth to continue accelerating in the last quarter, driven primarily by retail banking at BCP and by Mibanco. The acceleration anticipated for loan growth in the shift in the mix and the shift in the mix towards retail should support NIM as interest rates trend downward. Accordingly, we expect NIM to stand within our guidance range. While an increase in the cost of risk is anticipated in the final quarter, driven by a stronger focus on lending to higher-yielding segments, we expect it to close at the lower end of the guidance range. Accordingly, we expect the risk-adjusted NIM to move closer to the upper end of the guidance. On the efficiency front, we expect to be within our guidance range. Amid a more dynamic economic backdrop and strengthened origination levels in the first nine months of the year, we expect balance growth to continue accelerating in the last quarter, driven primarily by retail banking at BCP and by Mibanco. amid a more dynamic economic backdrop and strengthened origination levels in the first nine months of the year we expect balance growth to continue accelerating in the last quarter driven primarily by retail banking at bcp and by mibanco The acceleration anticipated for loan growth in the shift in the mix and the shift in the mix towards retail should support NIM as interest rates trend downward. the acceleration anticipated for loan growth in the shift in the mix and the shift in the mix towards retail should support nim as interest rates trend downward Accordingly, we expect NIM to stand within our guidance range. accordingly we expect nim to stand within our guidance range While an increase in the cost of risk is anticipated in the final quarter, driven by a stronger focus on lending to higher-yielding segments, we expect it to close at the lower end of the guidance range. while an increase in the cost of risk is anticipated in the final quarter driven by a stronger focus on lending to higher-yielding segments we expect it to close at the lower end of the guidance range Accordingly, we expect the risk-adjusted NIM to move closer to the upper end of the guidance. accordingly we expect the risk-adjusted nim to move closer to the upper end of the guidance On the efficiency front, we expect to be within our guidance range. on the efficiency front we expect to be within our guidance range Regarding fee income and insurance underwriting results, we expect growth to stand at low double digits this year, supported by an acceleration in economic activity and ongoing diversification of our income sources. As a result, we maintain our full-year ROE guidance at around 19%. This figure reflects both solid core performance and sustained discipline on the risk front. While local political uncertainties remain, we believe the fundamentals are in place to support this level of profitability. With these comments, I would like to open the Q&A session. Regarding fee income and insurance underwriting results, we expect growth to stand at low double digits this year, supported by an acceleration in economic activity and ongoing diversification of our income sources. regarding fee income and insurance underwriting results we expect growth to stand at low double digits this year supported by an acceleration in economic activity and ongoing diversification of our income sources As a result, we maintain our full-year ROE guidance at around 19%. as a result we maintain our full-year roe guidance at around 19% This figure reflects both solid core performance and sustained discipline on the risk front. this figure reflects both solid core performance and sustained discipline on the risk front While local political uncertainties remain, we believe the fundamentals are in place to support this level of profitability. while local political uncertainties remain we believe the fundamentals are in place to support this level of profitability With these comments, I would like to open the Q&A session. with these comments i would like to open the q&a session

Speaker 14: Ladies and gentlemen, at this time, we'll begin the question-and-answer session. If you would like to ask a question, please signal by pressing Star and then one on your telephone keypads. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. Ladies and gentlemen, at this time, we'll begin the question-and-answer session. ladies and gentlemen at this time we'll begin the question-and-answer session If you would like to ask a question, please signal by pressing Star and then one on your telephone keypads. if you would like to ask a question please signal by pressing star and then one on your telephone keypads If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. if you have connected to the call using the hd web phone on your computer please use the keypad on your computer screen If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to allow everyone the opportunity for questions. We also ask that you please only ask one question at a time. After your question has been addressed by our speakers, you will then be allowed to ask as many follow-ups as needed, but again, please ask only one question at a time. Thank you. Our first question comes from Ernesto Gabilondo from Bank of America. Please go ahead with your question. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. if you are using a speakerphone please make sure your mute function is turned off to allow your signal to reach our equipment We'll pause for just a moment to allow everyone the opportunity for questions. we'll pause for just a moment to allow everyone the opportunity for questions We also ask that you please only ask one question at a time. we also ask that you please only ask one question at a time After your question has been addressed by our speakers, you will then be allowed to ask as many follow-ups as needed, but again, please ask only one question at a time. after your question has been addressed by our speakers you will then be allowed to ask as many follow-ups as needed but again please ask only one question at a time Thank you. thank you Our first question comes from Ernesto Gabilondo from Bank of America. our first question comes from ernesto gabilondo from bank of america Please go ahead with your question. please go ahead with your question

Speaker 13: Thank you. Hi, good morning, Gianfranco, Alejandro, Cesar, Francesca, Milagros, and good morning to all your team. Happy Friday, and thank you for the opportunity to ask questions. My question will be related to asset quality, so NPLs and cost of risk are behaving much better than expected this year. Thank you. thank you Hi, good morning, Gianfranco, Alejandro, Cesar, Francesca, Milagros, and good morning to all your team. hi good morning gianfranco alejandro cesar francesca milagros and good morning to all your team Happy Friday, and thank you for the opportunity to ask questions. happy friday and thank you for the opportunity to ask questions My question will be related to asset quality, so NPLs and cost of risk are behaving much better than expected this year. my question will be related to asset quality so npls and cost of risk are behaving much better than expected this year It's well below your guidance provided. You mentioned you're expecting cost of risk to be at the low end of the guidance, should be around 2%. My question is, is it not too conservative, this guidance, because cost of risk will have to be above 2% in the last quarter? I just wanted to hear your thoughts on that. Looking to 2026, that probably you will accelerate the growth into high-yield segments. How should we think about the cost of risk? Should we start about 2% or similar guidance that you have provided this year? Thank you. It's well below your guidance provided. it's well below your guidance provided You mentioned you're expecting cost of risk to be at the low end of the guidance, should be around 2%. you mentioned you're expecting cost of risk to be at the low end of the guidance should be around 2% My question is, is it not too conservative, this guidance, because cost of risk will have to be above 2% in the last quarter? my question is is it not too conservative this guidance because cost of risk will have to be above 2% in the last quarter I just wanted to hear your thoughts on that. i just wanted to hear your thoughts on that Looking to 2026, that probably you will accelerate the growth into high-yield segments. looking to 2026 that probably you will accelerate the growth into high-yield segments How should we think about the cost of risk? how should we think about the cost of risk Should we start about 2% or similar guidance that you have provided this year? should we start about 2% or similar guidance that you have provided this year Thank you. thank you

Speaker 9: Good morning, Ernesto. This is Gianfranco. I'll ask Cesar to get into the details. Good morning, Ernesto. good morning ernesto This is Gianfranco. this is gianfranco I'll ask Cesar to get into the details. i'll ask cesar to get into the details

Speaker 15: Hi, Ernesto. Thank you for the question. I would say that, in fact, the results are better than we initially expected at the beginning of the year. Hi, Ernesto. hi ernesto Thank you for the question. thank you for the question I would say that, in fact, the results are better than we initially expected at the beginning of the year. i would say that in fact the results are better than we initially expected at the beginning of the year It's a combination of better results in the measures taken in the risk management front, but also a more dynamic economic backdrop. As we were mentioned, and Alejandro has been highlighted, the economy is growing faster, particularly if you consider consumer spending, and this is positive for the quality of the portfolio. At the end of the year, another factor is that we are going to have liquidity events, the AFP withdrawals, that are going to impact negatively, we'll say, loan growth, but positive credit quality. This is going to contribute to the numbers that we are laying out. Actually, Alejandro mentioned in the guideline that the cost of risk is going to be around the lower end, and the lower end is 1.8%. That's the first part of the question. It's a combination of better results in the measures taken in the risk management front, but also a more dynamic economic backdrop. it's a combination of better results in the measures taken in the risk management front but also a more dynamic economic backdrop As we were mentioned, and Alejandro has been highlighted, the economy is growing faster, particularly if you consider consumer spending, and this is positive for the quality of the portfolio. as we were mentioned and alejandro has been highlighted the economy is growing faster particularly if you consider consumer spending and this is positive for the quality of the portfolio At the end of the year, another factor is that we are going to have liquidity events, the AFP withdrawals, that are going to impact negatively, we'll say, loan growth, but positive credit quality. at the end of the year another factor is that we are going to have liquidity events the afp withdrawals that are going to impact negatively we'll say loan growth but positive credit quality This is going to contribute to the numbers that we are laying out. this is going to contribute to the numbers that we are laying out Actually, Alejandro mentioned in the guideline that the cost of risk is going to be around the lower end, and the lower end is 1.8%. actually alejandro mentioned in the guideline that the cost of risk is going to be around the lower end and the lower end is 1.8% That's the first part of the question. that's the first part of the question In the second part, what we expect for the next year is to increase gradually, as we have mentioned previously, the shift in the composition of the portfolio. I will again emphasize that the positive thing is that we expect to do that, increasing the NIM, and so the risk-adjusted NIM should also increase in absolute terms in relation to the current levels. In the second part, what we expect for the next year is to increase gradually, as we have mentioned previously, the shift in the composition of the portfolio. in the second part what we expect for the next year is to increase gradually as we have mentioned previously the shift in the composition of the portfolio I will again emphasize that the positive thing is that we expect to do that, increasing the NIM, and so the risk-adjusted NIM should also increase in absolute terms in relation to the current levels. i will again emphasize that the positive thing is that we expect to do that increasing the nim and so the risk-adjusted nim should also increase in absolute terms in relation to the current levels

Speaker 13: Excellent. Thank you very much. Just for a second question, in some OpEx growth, we noticed this quarter came at a double digit. As you mentioned, the idea is to have revenue growth outpacing OpEx growth over the next years. How should we think about OpEx growth next year? I do not know if you can break it down, your expectation of OpEx growth. How much will be related to the disruptive initiatives like Yape, Tenpo, and how much to the ongoing business? Excellent. excellent Thank you very much. thank you very much Just for a second question, in some OpEx growth, we noticed this quarter came at a double digit. just for a second question in some opex growth we noticed this quarter came at a double digit As you mentioned, the idea is to have revenue growth outpacing OpEx growth over the next years. as you mentioned the idea is to have revenue growth outpacing opex growth over the next years How should we think about OpEx growth next year? how should we think about opex growth next year I do not know if you can break it down, your expectation of OpEx growth. i do not know if you can break it down your expectation of opex growth How much will be related to the disruptive initiatives like Yape, Tenpo, and how much to the ongoing business? how much will be related to the disruptive initiatives like yape tenpo and how much to the ongoing business

Speaker 9: Alejandro? Alejandro? alejandro

Speaker 2: Sure. Yes. We have seen important operating expenses growth this quarter, but it is inside of our guidance, as we mentioned. It has been planned as we are revamping capabilities, both in the core business and the innovation part. We expect to continue to invest in the future, but in the core business, probably at a lower speed than what we have seen in this year, because again, we have done some particular projects during this year, so it should come a little bit lower. On the innovation side, we will probably remain in similar numbers that will allow us to generate more income and hence go to our midterm target that Gianfranco mentioned of 42% in the next three years, around three years. You should see a little bit of a lower growth of expenses in the core business and similar growth in the innovation part. Sure. sure Yes. yes We have seen important operating expenses growth this quarter, but it is inside of our guidance, as we mentioned. we have seen important operating expenses growth this quarter but it is inside of our guidance as we mentioned It has been planned as we are revamping capabilities, both in the core business and the innovation part. it has been planned as we are revamping capabilities both in the core business and the innovation part We expect to continue to invest in the future, but in the core business, probably at a lower speed than what we have seen in this year, because again, we have done some particular projects during this year, so it should come a little bit lower. we expect to continue to invest in the future but in the core business probably at a lower speed than what we have seen in this year because again, we have done some particular projects during this year so it should come a little bit lower On the innovation side, we will probably remain in similar numbers that will allow us to generate more income and hence go to our midterm target that Gianfranco mentioned of 42% in the next three years, around three years. on the innovation side we will probably remain in similar numbers that will allow us to generate more income and hence go to our midterm target that gianfranco mentioned of 42% in the next three years around three years You should see a little bit of a lower growth of expenses in the core business and similar growth in the innovation part. you should see a little bit of a lower growth of expenses in the core business and similar growth in the innovation part

Speaker 13: Okay. Perfect. Okay. okay Perfect. perfect Thank you very much. Thank you very much. thank you very much

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Brian Flores from Citi. Please go ahead with your question. Our next question comes from Brian Flores from Citi. our next question comes from brian flores from citi Please go ahead with your question. please go ahead with your question

Speaker 8: Hi, team. Good morning. Thank you for the opportunity to ask questions. I have a question related to growth, right, because your long-term guidance of ROE is 19.5%, and as you mentioned, you're ramping up. The economy is going well. Just wanted to see what should we think about the first quarter of the year, given the political uncertainty? We have elections in April, so just wondering if we might see some deceleration in the first quarter as mostly corporates tend to be a bit more cautious. As you mentioned, there are some impacts from withdrawals probably carrying into January, February. Hi, team. hi team Good morning. good morning Thank you for the opportunity to ask questions. thank you for the opportunity to ask questions I have a question related to growth, right, because your long-term guidance of ROE is 19.5%, and as you mentioned, you're ramping up. i have a question related to growth right because your long-term guidance of roe is 19.5% and as you mentioned you're ramping up The economy is going well. the economy is going well Just wanted to see what should we think about the first quarter of the year, given the political uncertainty? just wanted to see what should we think about the first quarter of the year given the political uncertainty We have elections in April, so just wondering if we might see some deceleration in the first quarter as mostly corporates tend to be a bit more cautious. we have elections in april so just wondering if we might see some deceleration in the first quarter as mostly corporates tend to be a bit more cautious As you mentioned, there are some impacts from withdrawals probably carrying into January, February. as you mentioned there are some impacts from withdrawals probably carrying into january february If you think maybe we could see ROE levels similar to this year, which obviously are very positive, or if you think we are, I would say, converging into this 19.5 long-term in a sooner way? Then I'll ask my second question. Thank you. If you think maybe we could see ROE levels similar to this year, which obviously are very positive, or if you think we are, I would say, converging into this 19.5 long-term in a sooner way? if you think maybe we could see roe levels similar to this year which obviously are very positive or if you think we are i would say converging into this 19.5 long-term in a sooner way Then I'll ask my second question. then i'll ask my second question Thank you. thank you

Speaker 9: Sure. Hi, Brian. This is Gianfranco. I'll answer the uncertainty question regarding elections next year. Maybe based on data, if you do a backtesting of what has happened in the last, I do not know, four or five elections, whatever, the previous year, there is basically no reduction in terms of growth, long-term growth, or investment, and so on. However, there is a slowdown over the last four elections. There is a slowdown in the first quarter of the year of the election. That is in line to what you are implying in your question. Sure. sure Hi, Brian. hi brian This is Gianfranco. this is gianfranco I'll answer the uncertainty question regarding elections next year. i'll answer the uncertainty question regarding elections next year Maybe based on data, if you do a backtesting of what has happened in the last, I do not know, four or five elections, whatever, the previous year, there is basically no reduction in terms of growth, long-term growth, or investment, and so on. maybe based on data if you do a backtesting of what has happened in the last i do not know four or five elections whatever the previous year there is basically no reduction in terms of growth long-term growth or investment and so on However, there is a slowdown over the last four elections. There is a slowdown in the first quarter of the year of the election. however, there is a slowdown over the last four elections. there is a slowdown in the first quarter of the year of the election That is in line to what you are implying in your question. that is in line to what you are implying in your question Having said that, it's a tricky question because of what César and Alejandro mentioned before. The pace of growth in terms of GDP, consumption in general, trade balances, and so on, some of those indicators are at record levels for the last, I don't know, 10 years. Actually, trade balance is at record levels over the last 70+ years. It is tricky. If you force me to give you an answer, my personal opinion is that next year, the first quarter of next year, is not going to be as low as what has happened in previous elections. Regarding ROE for the upcoming years, we will provide guidance next year. No, next call, actually. Next call. Yes, next call rather than nowadays. Not today, sorry. No, that's—sorry, sorry. Having said that, it's a tricky question because of what César and Alejandro mentioned before. having said that it's a tricky question because of what césar and alejandro mentioned before The pace of growth in terms of GDP, consumption in general, trade balances, and so on, some of those indicators are at record levels for the last, I don't know, 10 years. the pace of growth in terms of gdp consumption in general trade balances and so on some of those indicators are at record levels for the last i don't know 10 years Actually, trade balance is at record levels over the last 70+ years. actually trade balance is at record levels over the last 70+ years It is tricky. it is tricky If you force me to give you an answer, my personal opinion is that next year, the first quarter of next year, is not going to be as low as what has happened in previous elections. if you force me to give you an answer my personal opinion is that next year the first quarter of next year is not going to be as low as what has happened in previous elections Regarding ROE for the upcoming years, we will provide guidance next year. regarding roe for the upcoming years we will provide guidance next year No, next call, actually. no next call actually Next call. next call Yes, next call rather than nowadays. yes next call rather than nowadays Not today, sorry. not today sorry No, that's—sorry, sorry. no that's—sorry sorry

Speaker 2: I was just going to complement in a couple of comments. I was just going to complement in a couple of comments. i was just going to complement in a couple of comments Again, as Gianfranco just mentioned, the economy is finishing the year very strongly. Just a couple of points. Private investment in the last quarter, the third quarter of the year, grew 10.4%. That's the highest since 2013. We already mentioned private consumption. We are entering the year with a very positive situation. That's basically there's going to be some election-related effects, but again, it's interesting to see which one is weighing more. We're not expecting a big change in the first quarter. Having said that, there is also the aid withdrawal from the pension plans. What we expect is for it to have an effect of around 0.5% in growth, in less growth, but more related to this extra cash in the hands of our consumers and maybe prepayments in loans based on that. Again, as Gianfranco just mentioned, the economy is finishing the year very strongly. again as gianfranco just mentioned the economy is finishing the year very strongly Just a couple of points. just a couple of points Private investment in the last quarter, the third quarter of the year, grew 10.4%. private investment in the last quarter the third quarter of the year grew 10.4% That's the highest since 2013. that's the highest since 2013 We already mentioned private consumption. we already mentioned private consumption We are entering the year with a very positive situation. we are entering the year with a very positive situation That's basically there's going to be some election-related effects, but again, it's interesting to see which one is weighing more. that's basically there's going to be some election-related effects but again it's interesting to see which one is weighing more We're not expecting a big change in the first quarter. we're not expecting a big change in the first quarter Having said that, there is also the aid withdrawal from the pension plans. having said that there is also the aid withdrawal from the pension plans What we expect is for it to have an effect of around 0.5% in growth, in less growth, but more related to this extra cash in the hands of our consumers and maybe prepayments in loans based on that. what we expect is for it to have an effect of around 0.5% in growth in less growth but more related to this extra cash in the hands of our consumers and maybe prepayments in loans based on that Again, in this economic backdrop, we expect next year to—I mean, we'll give guidance in the next call, but we expect next year to be a strong year in growth for credit growth. Again, in this economic backdrop, we expect next year to—I mean, we'll give guidance in the next call, but we expect next year to be a strong year in growth for credit growth. again in this economic backdrop we expect next year to—i mean we'll give guidance in the next call but we expect next year to be a strong year in growth for credit growth

Speaker 8: No, perfect. Just to clarify, that 0.5% impact is full year, or is it year-over-year in the first quarter? No, perfect. no perfect Just to clarify, that 0.5% impact is full year, or is it year-over-year in the first quarter? just to clarify that 0.5% impact is full year or is it year-over-year in the first quarter

Speaker 2: It is full year, but it's going to be probably very much in the first quarter because the withdrawals start in November and finish in February. So it is the full year effective half percentage point, but again, probably very concentrated in the first part of the year. It is full year, but it's going to be probably very much in the first quarter because the withdrawals start in November and finish in February. it is full year but it's going to be probably very much in the first quarter because the withdrawals start in november and finish in february So it is the full year effective half percentage point, but again, probably very concentrated in the first part of the year. so it is the full year effective half percentage point but again probably very concentrated in the first part of the year

Speaker 8: No, okay. Perfect. And then just to confirm, the impact—I mean, the baseline that we should think about in terms of growth is, based on what I understand, similar to this level of 2025, right? That it's in the guidance. No, okay. no okay Perfect. perfect And then just to confirm, the impact—I mean, the baseline that we should think about in terms of growth is, based on what I understand, similar to this level of 2025, right? and then just to confirm the impact—i mean the baseline that we should think about in terms of growth is based on what i understand similar to this level of 2025 right That it's in the guidance. that it's in the guidance

Speaker 2: We will give guidance again in the next call, but the way I would put it is, if you think about 2025, the beginning, the first half of 2025, growth was not very strong. It has accelerated in the last quarters. I would say that there is probably an opportunity to even better grow when you consider a full year in 2026. We will give guidance again in the next call, but the way I would put it is, if you think about 2025, the beginning, the first half of 2025, growth was not very strong. It has accelerated in the last quarters. we will give guidance again in the next call but the way i would put it is if you think about 2025 the beginning the first half of 2025 growth was not very strong. it has accelerated in the last quarters I would say that there is probably an opportunity to even better grow when you consider a full year in 2026. i would say that there is probably an opportunity to even better grow when you consider a full year in 2026

Speaker 8: No, no, perfect. I really appreciate the clarification because, as Gianfranco was saying, this is indeed a tricky question, and it has a lot of moving parts. I really appreciate—if I can just very quickly on my second question, Yape's contribution, nearly close to 7%. Just wondering if we can envision a double-digit contribution by 2026. No, no, perfect. no no perfect I really appreciate the clarification because, as Gianfranco was saying, this is indeed a tricky question, and it has a lot of moving parts. i really appreciate the clarification because as gianfranco was saying this is indeed a tricky question and it has a lot of moving parts I really appreciate—if I can just very quickly on my second question, Yape's contribution, nearly close to 7%. i really appreciate—if i can just very quickly on my second question yape's contribution nearly close to 7% Just wondering if we can envision a double-digit contribution by 2026. just wondering if we can envision a double-digit contribution by 2026

Speaker 9: Definitely. Yeah. Yeah, very probably. Definitely. definitely Yeah. yeah yeah Yeah, very probably. yeah very probably

Speaker 8: Perfect. Thank you very much. Thank you, team. Perfect. perfect Thank you very much. thank you very much Thank you, team. thank you team

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Renato Meloni from Autonomous Research. Please go ahead with your question. Our next question comes from Renato Meloni from Autonomous Research. our next question comes from renato meloni from autonomous research Please go ahead with your question. please go ahead with your question

Speaker 11: Hi, everyone. Hi, everyone. hi everyone Congrats on the results. It's Renato from Autonomous Research here. Just first, a quick follow-up on loan growth, just picking up on your earlier comments. Just wanted to know if you expect to reach the loan growth guidance for this year and if that's FX adjusted or just the nominal value. My second question is on the NIM expansion. I just wanted to reconcile your comments because, I mean, we can see the mixed shift here driving yields higher, but at the same time, you're commenting on these lower risk vintages that are positively impacting cost of risk. I just wanted to put these two together and see what really happened here. Thank you. Congrats on the results. congrats on the results It's Renato from Autonomous Research here. it's renato from autonomous research here Just first, a quick follow-up on loan growth, just picking up on your earlier comments. just first a quick follow-up on loan growth just picking up on your earlier comments Just wanted to know if you expect to reach the loan growth guidance for this year and if that's FX adjusted or just the nominal value. just wanted to know if you expect to reach the loan growth guidance for this year and if that's fx adjusted or just the nominal value My second question is on the NIM expansion. my second question is on the nim expansion I just wanted to reconcile your comments because, I mean, we can see the mixed shift here driving yields higher, but at the same time, you're commenting on these lower risk vintages that are positively impacting cost of risk. i just wanted to reconcile your comments because i mean we can see the mixed shift here driving yields higher but at the same time you're commenting on these lower risk vintages that are positively impacting cost of risk I just wanted to put these two together and see what really happened here. i just wanted to put these two together and see what really happened here Thank you. thank you

Speaker 9: Alejandro, could you take the first one? The first one was the loan growth. Loan growth. Alejandro, could you take the first one? alejandro could you take the first one The first one was the loan growth. the first one was the loan growth loan Loan growth. growth loan growth

Speaker 2: Sure. Sure. sure Loan growth, I would say that the number we've given in guidance is nominal, but it does consider the adjustment of Bolivia's restatement, okay, which is just an accounting statement because we're using a different exchange rate. It is not considering any impact of the sol dollar exchange rate. We do expect to reach it. I mean, if we consider the retail growth we've seen in the third quarter, just by continuing with that retail growth and having some wholesale growth, we should be able to be around that area. With the economic backdrop, we believe it's very achievable in this year. Loan growth, I would say that the number we've given in guidance is nominal, but it does consider the adjustment of Bolivia's restatement, okay, which is just an accounting statement because we're using a different exchange rate. loan growth i would say that the number we've given in guidance is nominal but it does consider the adjustment of bolivia's restatement okay which is just an accounting statement because we're using a different exchange rate It is not considering any impact of the sol dollar exchange rate. it is not considering any impact of the sol dollar exchange rate We do expect to reach it. we do expect to reach it I mean, if we consider the retail growth we've seen in the third quarter, just by continuing with that retail growth and having some wholesale growth, we should be able to be around that area. i mean if we consider the retail growth we've seen in the third quarter just by continuing with that retail growth and having some wholesale growth we should be able to be around that area With the economic backdrop, we believe it's very achievable in this year. with the economic backdrop we believe it's very achievable in this year

Speaker 9: I can't—yeah, yeah. Go ahead, Cesar, the second question. I can't—yeah, yeah. i can't—yeah yeah Go ahead, Cesar, the second question. go ahead cesar the second question

Speaker 15: Yes. The second question. I understand your question because you say it's a combination of better quality, but after the better quality, higher cost of risk. Yes. yes The second question. the second question I understand your question because you say it's a combination of better quality, but after the better quality, higher cost of risk. i understand your question because you say it's a combination of better quality but after the better quality higher cost of risk The issue is that we are talking about fundamentally two different portfolios. We have been improving the quality of origination, so the traditional portfolios are having less cost of risk gradually. As Alejandro mentioned, as the year goes, we have more of newly originated parts of the portfolio in relation to the originated portfolio in year 2023 that comes with higher cost of risk. This is a trend that goes the cost of risk down. As the year passes, we are starting to originate a new segment with purposely higher cost of risk, higher margin, and this percentage is growing gradually. The combination of these factors explains the initial draw, diminishing the cost of risk and the gradual improvement as the year ends and the next year begins. I do not know if it has clarified the points. The issue is that we are talking about fundamentally two different portfolios. the issue is that we are talking about fundamentally two different portfolios We have been improving the quality of origination, so the traditional portfolios are having less cost of risk gradually. we have been improving the quality of origination so the traditional portfolios are having less cost of risk gradually As Alejandro mentioned, as the year goes, we have more of newly originated parts of the portfolio in relation to the originated portfolio in year 2023 that comes with higher cost of risk. as alejandro mentioned as the year goes we have more of newly originated parts of the portfolio in relation to the originated portfolio in year 2023 that comes with higher cost of risk This is a trend that goes the cost of risk down. this is a trend that goes the cost of risk down As the year passes, we are starting to originate a new segment with purposely higher cost of risk, higher margin, and this percentage is growing gradually. as the year passes we are starting to originate a new segment with purposely higher cost of risk higher margin and this percentage is growing gradually The combination of these factors explains the initial draw, diminishing the cost of risk and the gradual improvement as the year ends and the next year begins. the combination of these factors explains the initial draw diminishing the cost of risk and the gradual improvement as the year ends and the next year begins I do not know if it has clarified the points. i do not know if it has clarified the points

Speaker 11: No, that is pretty clear. Thanks very much. No, that is pretty clear. no, that is pretty clear Thanks very much. thanks very much Again, congrats on the results. Again, congrats on the results. again congrats on the results

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Yuri Fernandes from JPMorgan. Please go ahead with your question. Our next question comes from Yuri Fernandes from JPMorgan. our next question comes from yuri fernandes from jpmorgan Please go ahead with your question. please go ahead with your question

Speaker 5: Gianfranco, Alejandro, Milagros, everyone. Thank you for the opportunity of asking questions. I have one regarding Bolivia. I know this year has been volatile on FX, the impairments, like the readjustments, right, on the portfolio deposits. Now there was an important political shift in Bolivia. I know this is small for your entire operation, but this quarter, it was already better. If you can comment on what you expect for Bolivia, if the elections, like the new president, should have any tailwind for you going forward, like any securities gains you may have, just trying to understand and know if Bolivia, from a headwind in the past years, may become a tailwind for you here. Thank you. Gianfranco, Alejandro, Milagros, everyone. gianfranco alejandro milagros everyone Thank you for the opportunity of asking questions. thank you for the opportunity of asking questions I have one regarding Bolivia. i have one regarding bolivia I know this year has been volatile on FX, the impairments, like the readjustments, right, on the portfolio deposits. i know this year has been volatile on fx the impairments like the readjustments right on the portfolio deposits Now there was an important political shift in Bolivia. now there was an important political shift in bolivia I know this is small for your entire operation, but this quarter, it was already better. i know this is small for your entire operation but this quarter it was already better If you can comment on what you expect for Bolivia, if the elections, like the new president, should have any tailwind for you going forward, like any securities gains you may have, just trying to understand and know if Bolivia, from a headwind in the past years, may become a tailwind for you here. if you can comment on what you expect for bolivia if the elections like the new president should have any tailwind for you going forward like any securities gains you may have just trying to understand and know if bolivia from a headwind in the past years may become a tailwind for you here Thank you. thank you

Speaker 9: Hi, Yuri. Hi, Yuri. hi yuri Let me take that question because I believe you know that I ran that bank for three years, so I'm quite knowledgeable about Bolivia. Even though it's very early stages for the new government, the initial definitions or decisions they've made, they're giving very positive signaling. The executive cabinet is very pro-market and professional. They just appointed, I believe, yesterday or the day before, the new Central Bank president. He's a very well-seasoned technical guy. The initial indicators are quite positive. As you mentioned, BCP Bolivia has been small for us. I've been seeing it as an option value for us, and that option may become quite relevant going forward. We're positive on what can happen in Bolivia as a country. Let me take that question because I believe you know that I ran that bank for three years, so I'm quite knowledgeable about Bolivia. let me take that question because i believe you know that i ran that bank for three years so i'm quite knowledgeable about bolivia Even though it's very early stages for the new government, the initial definitions or decisions they've made, they're giving very positive signaling. even though it's very early stages for the new government the initial definitions or decisions they've made they're giving very positive signaling The executive cabinet is very pro-market and professional. the executive cabinet is very pro-market and professional They just appointed, I believe, yesterday or the day before, the new Central Bank president. they just appointed i believe yesterday or the day before the new central bank president He's a very well-seasoned technical guy. he's a very well-seasoned technical guy The initial indicators are quite positive. the initial indicators are quite positive As you mentioned, BCP Bolivia has been small for us. as you mentioned bcp bolivia has been small for us I've been seeing it as an option value for us, and that option may become quite relevant going forward. i've been seeing it as an option value for us and that option may become quite relevant going forward We're positive on what can happen in Bolivia as a country. we're positive on what can happen in bolivia as a country Having said that, there's a lot to be done on the political and economical and social matters for the government, but we're quite positive with the potential outcomes going forward. Having said that, there's a lot to be done on the political and economical and social matters for the government, but we're quite positive with the potential outcomes going forward. having said that there's a lot to be done on the political and economical and social matters for the government but we're quite positive with the potential outcomes going forward

Speaker 5: No, thank you, Gianfranco. So we'll keep asking about the app, but good to know that you have the optionality there. If I may, just a quick second one, payout and dividends. Your capital accumulation has been pretty strong. I know you had the cash payment of the legal debate you have on the taxes. But what should we expect here? Guide us through capital returns for shareholders. Thank you. No, thank you, Gianfranco. no thank you gianfranco So we'll keep asking about the app, but good to know that you have the optionality there. so we'll keep asking about the app but good to know that you have the optionality there If I may, just a quick second one, payout and dividends. if i may just a quick second one payout and dividends Your capital accumulation has been pretty strong. your capital accumulation has been pretty strong I know you had the cash payment of the legal debate you have on the taxes. i know you had the cash payment of the legal debate you have on the taxes But what should we expect here? but what should we expect here Guide us through capital returns for shareholders. guide us through capital returns for shareholders Thank you. thank you

Speaker 9: Yes. Can you take it over? Yes. yes Can you take it over? can you take it over

Speaker 2: Sure. Yes. Hi, Yuri. So basically, this year, the payout has been 58%. And as you alluded, we did that in just the regular dividend. We didn't pay an extraordinary dividend. Sure. sure Yes. yes Hi, Yuri. hi yuri So basically, this year, the payout has been 58%. so basically this year the payout has been 58% And as you alluded, we did that in just the regular dividend. and as you alluded we did that in just the regular dividend We didn't pay an extraordinary dividend. we didn't pay an extraordinary dividend Going forward, I mean, there's growth in our business that, of course, consumes capital, but we do expect to maintain our increasing ordinary dividend and potentially with also extraordinary dividends. I would say probably payout ratios should be higher than this year in the high 60s. Again, it's going to depend on whether there's any particular transactions. There's always the possibility of something that changes that. In ordinary business, we should see an increase from this year, not necessarily to the 2024 levels where we had a payout of 75%, but we were generating a lot of income without loan growth. That, of course, doesn't consume capital. Again, higher than this year and with increasing ordinary dividends is what I would think we're going to see in the coming years. Going forward, I mean, there's growth in our business that, of course, consumes capital, but we do expect to maintain our increasing ordinary dividend and potentially with also extraordinary dividends. going forward i mean there's growth in our business that of course consumes capital but we do expect to maintain our increasing ordinary dividend and potentially with also extraordinary dividends I would say probably payout ratios should be higher than this year in the high 60s. i would say probably payout ratios should be higher than this year in the high 60s Again, it's going to depend on whether there's any particular transactions. again it's going to depend on whether there's any particular transactions There's always the possibility of something that changes that. there's always the possibility of something that changes that In ordinary business, we should see an increase from this year, not necessarily to the 2024 levels where we had a payout of 75%, but we were generating a lot of income without loan growth. in ordinary business we should see an increase from this year not necessarily to the 2024 levels where we had a payout of 75% but we were generating a lot of income without loan growth That, of course, doesn't consume capital. that of course doesn't consume capital Again, higher than this year and with increasing ordinary dividends is what I would think we're going to see in the coming years. again higher than this year and with increasing ordinary dividends is what i would think we're going to see in the coming years

Speaker 5: Great. In the case of inorganic acquisition, which areas do you see value for? Great. great In the case of inorganic acquisition, which areas do you see value for? in the case of inorganic acquisition which areas do you see value for Insurance, you just had Banmedica, but anything that is important for Credicorp nowadays? Insurance, you just had Banmedica, but anything that is important for Credicorp nowadays? insurance you just had banmedica but anything that is important for credicorp nowadays

Speaker 9: Nothing relevant, Yuri, as we speak. As we mentioned—actually, Alejandro just mentioned it—we will retain whatever is needed for financing growth, including potential inorganic operations. Everything else will be paid as dividend. The idea is to keep increasing the regular dividend. As we speak, there is nothing relevant in terms of M&A. Nothing relevant, Yuri, as we speak. nothing relevant yuri as we speak As we mentioned—actually, Alejandro just mentioned it—we will retain whatever is needed for financing growth, including potential inorganic operations. as we mentioned—actually alejandro just mentioned it—we will retain whatever is needed for financing growth including potential inorganic operations Everything else will be paid as dividend. everything else will be paid as dividend The idea is to keep increasing the regular dividend. the idea is to keep increasing the regular dividend As we speak, there is nothing relevant in terms of M&A. as we speak there is nothing relevant in terms of m&a

Speaker 5: No, perfect. Thank you, Gianfranco. Thank you, Alejandro. And congrats on the quarter. No, perfect. no perfect Thank you, Gianfranco. thank you gianfranco Thank you, Alejandro. thank you alejandro And congrats on the quarter. and congrats on the quarter

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Lindsey Shema from Goldman Sachs. Please go ahead with your question. Our next question comes from Lindsey Shema from Goldman Sachs. our next question comes from lindsey shema from goldman sachs Please go ahead with your question. please go ahead with your question

Speaker 3: Hi. Good morning. Thank you for taking my question. Just a follow-up on the impacts of the eighth pension fund withdrawal. I was wondering if you could kind of weigh the impacts against each other. I mean, it sounds like there is going to be better asset quality, but slower loan growth. Hi. hi Good morning. good morning Thank you for taking my question. thank you for taking my question Just a follow-up on the impacts of the eighth pension fund withdrawal. just a follow-up on the impacts of the eighth pension fund withdrawal I was wondering if you could kind of weigh the impacts against each other. i was wondering if you could kind of weigh the impacts against each other I mean, it sounds like there is going to be better asset quality, but slower loan growth. i mean it sounds like there is going to be better asset quality but slower loan growth Are you seeing any impacts to Prima? Net net, how are you seeing the impacts on the business? I'll ask a second follow-up afterwards. Are you seeing any impacts to Prima? are you seeing any impacts to prima Net net, how are you seeing the impacts on the business? net net how are you seeing the impacts on the business I'll ask a second follow-up afterwards. i'll ask a second follow-up afterwards

Speaker 9: Yeah. Alejandro? Yeah. yeah Alejandro? alejandro

Speaker 2: Yeah, sure. The eighth withdrawal is going to be—we expect it to be around PEN 25 billion. If we think about the usual share we've retained inside Credicorp, that could be around PEN 10 billion. There's a positive impact in local funding. We expected that to be around 1% more than we already expected in local funding, both this year and next year. That's a positive. As I mentioned, in loan growth, as Credicorp, we are expecting around half a percentage point less of loan growth next year. That is a negative impact for the coming year. Yeah, sure. yeah sure The eighth withdrawal is going to be—we expect it to be around PEN 25 billion. the eighth withdrawal is going to be—we expect it to be around pen 25 billion If we think about the usual share we've retained inside Credicorp, that could be around PEN 10 billion. if we think about the usual share we've retained inside credicorp that could be around pen 10 billion There's a positive impact in local funding. there's a positive impact in local funding We expected that to be around 1% more than we already expected in local funding, both this year and next year. we expected that to be around 1% more than we already expected in local funding both this year and next year That's a positive. that's a positive As I mentioned, in loan growth, as Credicorp, we are expecting around half a percentage point less of loan growth next year. as i mentioned in loan growth as credicorp we are expecting around half a percentage point less of loan growth next year That is a negative impact for the coming year. that is a negative impact for the coming year As for Prima, the impact this year is very, very small if you consider that this actually impacts basically fee income, and it is happening very late in the year. Next year, there is certainly going to be an impact in fee income of around 10% of fee income if the numbers that we are assuming of withdrawals remain in place. As for Prima, the impact this year is very, very small if you consider that this actually impacts basically fee income, and it is happening very late in the year. as for prima the impact this year is very very small if you consider that this actually impacts basically fee income and it is happening very late in the year Next year, there is certainly going to be an impact in fee income of around 10% of fee income if the numbers that we are assuming of withdrawals remain in place. next year, there is certainly going to be an impact in fee income of around 10% of fee income if the numbers that we are assuming of withdrawals remain in place

Speaker 9: Yeah. Maybe just a quick comment that goes beyond your question, actually, and we have been saying it for a couple of years already, is unfortunately, we believe that the pension system in Peru has been destroyed by the politicians. We have been quite active in the past in trying to come up with a reasonable proposal that has not been taken into consideration. Yeah. yeah Maybe just a quick comment that goes beyond your question, actually, and we have been saying it for a couple of years already, is unfortunately, we believe that the pension system in Peru has been destroyed by the politicians. We have been quite active in the past in trying to come up with a reasonable proposal that has not been taken into consideration. maybe just a quick comment that goes beyond your question actually and we have been saying it for a couple of years already is unfortunately we believe that the pension system in peru has been destroyed by the politicians. we have been quite active in the past in trying to come up with a reasonable proposal that has not been taken into consideration Hopefully, in the upcoming years, that pension fund system, both the public one and the private one, can be fixed and we come up with a value proposition and structuring that is reasonable for Peruvians. Otherwise, there is going to be a major issue, I do not know, 10-15 years down the road. Hopefully, in the upcoming years, that pension fund system, both the public one and the private one, can be fixed and we come up with a value proposition and structuring that is reasonable for Peruvians. hopefully in the upcoming years that pension fund system both the public one and the private one can be fixed and we come up with a value proposition and structuring that is reasonable for peruvians Otherwise, there is going to be a major issue, I do not know, 10-15 years down the road. otherwise, there is going to be a major issue i do not know 10-15 years down the road

Speaker 3: Thank you. For my second question, I mean, continue to see strong loan growth at Yape. Could you provide an update on the unit economics, especially as you have started to increase the multi-installment loans? Thank you. thank you For my second question, I mean, continue to see strong loan growth at Yape. for my second question i mean continue to see strong loan growth at yape Could you provide an update on the unit economics, especially as you have started to increase the multi-installment loans? could you provide an update on the unit economics especially as you have started to increase the multi-installment loans

Speaker 2: Yeah. I mean, as I mentioned, we are scaling the multi, as you mentioned, the multi-installment loans in Yape. Today, I mean, the cost of risk in that versus the rate that we are charging, it is a very positive business. It is still small. Yeah. yeah I mean, as I mentioned, we are scaling the multi, as you mentioned, the multi-installment loans in Yape. i mean as i mentioned we are scaling the multi as you mentioned the multi-installment loans in yape Today, I mean, the cost of risk in that versus the rate that we are charging, it is a very positive business. It is still small. today i mean the cost of risk in that versus the rate that we are charging, it is a very positive business. it is still small When we expect to scale it going forward, I do not have the unit economics to share at this time. Again, it is a growing business that should—today, it represents around 20% of Yape's income, the whole lending business. We expect it to continue growing and become an even more important contributor to Yape. When we expect to scale it going forward, I do not have the unit economics to share at this time. when we expect to scale it going forward i do not have the unit economics to share at this time Again, it is a growing business that should—today, it represents around 20% of Yape's income, the whole lending business. again it is a growing business that should—today it represents around 20% of yape's income the whole lending business We expect it to continue growing and become an even more important contributor to Yape. we expect it to continue growing and become an even more important contributor to yape

Speaker 9: Maybe to complement Alejandro's answer and for you to understand how we are managing the loan book at Yape. We start lending—bear in mind that this is mostly unbanked or underbanked. We start lending mono installment, mono quotas, very small ticket loans. As we gain info and data from the customers, we shift them or increase the value prop in terms of tenor and size of the ticket. Both the mono quota overall and the multi-installment are profitable businesses. Maybe to complement Alejandro's answer and for you to understand how we are managing the loan book at Yape. maybe to complement alejandro's answer and for you to understand how we are managing the loan book at yape We start lending—bear in mind that this is mostly unbanked or underbanked. we start lending—bear in mind that this is mostly unbanked or underbanked We start lending mono installment, mono quotas, very small ticket loans. we start lending mono installment mono quotas very small ticket loans As we gain info and data from the customers, we shift them or increase the value prop in terms of tenor and size of the ticket. as we gain info and data from the customers we shift them or increase the value prop in terms of tenor and size of the ticket Both the mono quota overall and the multi-installment are profitable businesses. both the mono quota overall and the multi-installment are profitable businesses Again, we do not have the unit economics of each single loan, but we manage them actually by advantages. Overall, the results are positive. Again, we do not have the unit economics of each single loan, but we manage them actually by advantages. again we do not have the unit economics of each single loan but we manage them actually by advantages Overall, the results are positive. overall the results are positive

Speaker 2: Yes, and it has a very positive impact in the population because for more than 1 million clients, it is the first loan that they have gained access to. Yes, and it has a very positive impact in the population because for more than 1 million clients, it is the first loan that they have gained access to. yes and it has a very positive impact in the population because for more than 1 million clients, it is the first loan that they have gained access to

Speaker 9: Yeah. Yeah. yeah

Speaker 14: Our next question comes from Daniel Vaz from Safra. Please go ahead with your question. Our next question comes from Daniel Vaz from Safra. our next question comes from daniel vaz from safra Please go ahead with your question. please go ahead with your question

Speaker 6: Hi, Gianfranco, Alejandro, Milagros, all team. Congrats on the strong performance, very good results. I am particularly interested in Mibanco here. It continued to surprise us, right? I think ROE expansion, maybe improving asset quality also with good names. You are coming from years, I guess, since maybe 2023, that your loan growth has been decreasing, right? Right now, we see a loan growth on the positive side coming from like 1% last quarter to 8% right now. Hi, Gianfranco, Alejandro, Milagros, all team. hi gianfranco alejandro milagros all team Congrats on the strong performance, very good results. congrats on the strong performance very good results I am particularly interested in Mibanco here. i am particularly interested in mibanco here It continued to surprise us, right? it continued to surprise us right I think ROE expansion, maybe improving asset quality also with good names. i think roe expansion maybe improving asset quality also with good names You are coming from years, I guess, since maybe 2023, that your loan growth has been decreasing, right? you are coming from years i guess since maybe 2023 that your loan growth has been decreasing right Right now, we see a loan growth on the positive side coming from like 1% last quarter to 8% right now. right now we see a loan growth on the positive side coming from like 1% last quarter to 8% right now Also very strong numbers in Colombia. I noticed like 20% year-over-year growth. Looking at the whole picture, correct me if I'm wrong, but this outperformance and also controlled asset quality should give you even more confidence to accelerate growth in Mibanco, right? I guess looking ahead like 2026, I would expect this loan growth to migrate from, I do not know, maybe single digit to low teens, maybe mid-teens level portfolio growth, right? You are seeing very, very good asset quality, ROE expanding. Is this the case? I mean, should we think Mibanco like this to the upcoming quarters? Thank you. Also very strong numbers in Colombia. also very strong numbers in colombia I noticed like 20% year-over-year growth. i noticed like 20% year-over-year growth Looking at the whole picture, correct me if I'm wrong, but this outperformance and also controlled asset quality should give you even more confidence to accelerate growth in Mibanco, right? looking at the whole picture correct me if i'm wrong but this outperformance and also controlled asset quality should give you even more confidence to accelerate growth in mibanco right I guess looking ahead like 2026, I would expect this loan growth to migrate from, I do not know, maybe single digit to low teens, maybe mid-teens level portfolio growth, right? i guess looking ahead like 2026 i would expect this loan growth to migrate from i do not know maybe single digit to low teens maybe mid-teens level portfolio growth right You are seeing very, very good asset quality, ROE expanding. you are seeing very very good asset quality roe expanding Is this the case? is this the case I mean, should we think Mibanco like this to the upcoming quarters? i mean should we think mibanco like this to the upcoming quarters Thank you. thank you

Speaker 9: Yeah. Thank you, Daniel, for your question. Let me get a couple of steps back to answer for you to have a more holistic vision. The whole microfinance sector in Peru has been hit very harshly over the last four or five years. Yeah. yeah Thank you, Daniel, for your question. thank you daniel for your question Let me get a couple of steps back to answer for you to have a more holistic vision. let me get a couple of steps back to answer for you to have a more holistic vision The whole microfinance sector in Peru has been hit very harshly over the last four or five years. the whole microfinance sector in peru has been hit very harshly over the last four or five years It's the worst combination because rates went up. The funding and most of the microfinance institutions' funding is not retail funding or transactional funding. It's time deposits or local capital markets. Rates went up that they were not able—I am talking as a system—they were not able to pass through that increase in rates. Cost of risk went up. Therefore, margins were really squeezed. On top of that, and I am always being very critical about it, the microfinance institutions, at least in Peru, the whole transactional business, fee income, and so on, and this is the case of Mibanco, is very weak. You see that when they had the perfect storm over the last three, four years. Going forward, I totally agree with what you just said regarding lending at Mibanco because we expect the quality of the portfolio has already improved dramatically. It's the worst combination because rates went up. it's the worst combination because rates went up The funding and most of the microfinance institutions' funding is not retail funding or transactional funding. the funding and most of the microfinance institutions' funding is not retail funding or transactional funding It's time deposits or local capital markets. it's time deposits or local capital markets Rates went up that they were not able—I am talking as a system—they were not able to pass through that increase in rates. rates went up that they were not able—i am talking as a system—they were not able to pass through that increase in rates Cost of risk went up. cost of risk went up Therefore, margins were really squeezed. therefore margins were really squeezed On top of that, and I am always being very critical about it, the microfinance institutions, at least in Peru, the whole transactional business, fee income, and so on, and this is the case of Mibanco, is very weak. on top of that and i am always being very critical about it the microfinance institutions at least in peru the whole transactional business fee income and so on and this is the case of mibanco is very weak You see that when they had the perfect storm over the last three, four years. you see that when they had the perfect storm over the last three four years Going forward, I totally agree with what you just said regarding lending at Mibanco because we expect the quality of the portfolio has already improved dramatically. going forward i totally agree with what you just said regarding lending at mibanco because we expect the quality of the portfolio has already improved dramatically The new vintages are performing better than the old vintages. We are quite positive on the lending business going forward. On top of that, Mibanco, and this is a more long-term strategy. On top of that, Mibanco is currently working in complementing that business. In the next few years, you'll see that the fee income business, transactional business, is going to grow at a faster pace than the lending business or the lending of that margin because we are focusing in bringing more transactionality to Mibanco. The collateral effect is that the cost of funding should go down also. The new vintages are performing better than the old vintages. the new vintages are performing better than the old vintages We are quite positive on the lending business going forward. we are quite positive on the lending business going forward On top of that, Mibanco, and this is a more long-term strategy. on top of that mibanco and this is a more long-term strategy On top of that, Mibanco is currently working in complementing that business. on top of that mibanco is currently working in complementing that business In the next few years, you'll see that the fee income business, transactional business, is going to grow at a faster pace than the lending business or the lending of that margin because we are focusing in bringing more transactionality to Mibanco. in the next few years you'll see that the fee income business transactional business is going to grow at a faster pace than the lending business or the lending of that margin because we are focusing in bringing more transactionality to mibanco The collateral effect is that the cost of funding should go down also. the collateral effect is that the cost of funding should go down also

Speaker 6: No, thank you. Very, very good panorama here for upcoming quarters. Very exciting numbers for Mibanco here. Thank you. No, thank you. no thank you Very, very good panorama here for upcoming quarters. very very good panorama here for upcoming quarters Very exciting numbers for Mibanco here. very exciting numbers for mibanco here Thank you. thank you

Speaker 14: Our next question comes from Carlos Gomez from HSBC. Please go ahead with your question. Our next question comes from Carlos Gomez from HSBC. our next question comes from carlos gomez from hsbc Please go ahead with your question. please go ahead with your question

Speaker 12: Thank you. Good morning. Thank you. thank you Good morning. good morning Congratulations, particularly on Yape and particularly on Bolivia. You really took my question because I know that it's close to your heart. In that regard, you have the changes in Bolivia. You have the elections in Chile, the elections in Colombia, as well as Peru. It seems to me that you might have a target-rich environment for investment around the region. Does that make you more inclined to perhaps invest more and distribute less? If so, do you have a particular geographical difference right now? That would be the question. Yes. Congratulations, particularly on Yape and particularly on Bolivia. congratulations particularly on yape and particularly on bolivia You really took my question because I know that it's close to your heart. you really took my question because i know that it's close to your heart In that regard, you have the changes in Bolivia. in that regard you have the changes in bolivia You have the elections in Chile, the elections in Colombia, as well as Peru. you have the elections in chile the elections in colombia as well as peru It seems to me that you might have a target-rich environment for investment around the region. it seems to me that you might have a target-rich environment for investment around the region Does that make you more inclined to perhaps invest more and distribute less? does that make you more inclined to perhaps invest more and distribute less If so, do you have a particular geographical difference right now? if so do you have a particular geographical difference right now That would be the question. that would be the question Yes. yes

Speaker 9: Yes. Good morning, Carlos. Our region, so again, Credicorp has been here for 30 years. BCP has been here for over 130 years. Actually, the vision we have goes beyond the political environment. Obviously, the political environment impacts the performance of our countries and our appetite. Yes. yes Good morning, Carlos. good morning carlos Our region, so again, Credicorp has been here for 30 years. our region so again credicorp has been here for 30 years BCP has been here for over 130 years. bcp has been here for over 130 years Actually, the vision we have goes beyond the political environment. actually the vision we have goes beyond the political environment Obviously, the political environment impacts the performance of our countries and our appetite. obviously the political environment impacts the performance of our countries and our appetite Having said all of that, we are quite positive to what could happen, especially in Bolivia, Chile, and Peru. Let me provide you more detail. It's not only because of the changing governments and upcoming governments being more pro-market or whatever. That's definitely relevant. More relevant than that is what's going on with commodity prices, specifically copper and lithium and gold in the case of Peru. Copper prices, and you guys or your banks know more than we do, copper prices should stay at high levels for a long period because of the investments that are being done in data centers and that data centers consume a lot of energy. Lithium, it's a matter of the transition, sorry, to electric vehicles and so on. Gold is like a hedge to the dollar, basically. We are positive on that. Having said all of that, we are quite positive to what could happen, especially in Bolivia, Chile, and Peru. having said all of that we are quite positive to what could happen especially in bolivia chile and peru Let me provide you more detail. let me provide you more detail It's not only because of the changing governments and upcoming governments being more pro-market or whatever. it's not only because of the changing governments and upcoming governments being more pro-market or whatever That's definitely relevant. that's definitely relevant More relevant than that is what's going on with commodity prices, specifically copper and lithium and gold in the case of Peru. more relevant than that is what's going on with commodity prices specifically copper and lithium and gold in the case of peru Copper prices, and you guys or your banks know more than we do, copper prices should stay at high levels for a long period because of the investments that are being done in data centers and that data centers consume a lot of energy. copper prices and you guys or your banks know more than we do copper prices should stay at high levels for a long period because of the investments that are being done in data centers and that data centers consume a lot of energy Lithium, it's a matter of the transition, sorry, to electric vehicles and so on. lithium it's a matter of the transition sorry to electric vehicles and so on Gold is like a hedge to the dollar, basically. gold is like a hedge to the dollar basically We are positive on that. we are positive on that Both Chile and Bolivia are very relevant in lithium reserves. Both Chile and Peru are really relevant in copper reserves. There are a lot of moving pieces, but the whole environment, we see a much more positive environment for the upcoming years when you compare that environment to what we have had in the last, I do not know, four or five years in these three countries. Both Chile and Bolivia are very relevant in lithium reserves. both chile and bolivia are very relevant in lithium reserves Both Chile and Peru are really relevant in copper reserves. both chile and peru are really relevant in copper reserves There are a lot of moving pieces, but the whole environment, we see a much more positive environment for the upcoming years when you compare that environment to what we have had in the last, I do not know, four or five years in these three countries. there are a lot of moving pieces but the whole environment we see a much more positive environment for the upcoming years when you compare that environment to what we have had in the last i do not know four or five years in these three countries

Speaker 12: We are happy to hear. Thank you so much. If I can sneak in one more question on the rates, could you give us an update on your sensitivity to rates, both U.S. dollars and soles? Thank you. We are happy to hear. we are happy to hear Thank you so much. thank you so much If I can sneak in one more question on the rates, could you give us an update on your sensitivity to rates, both U.S. dollars and soles? if i can sneak in one more question on the rates could you give us an update on your sensitivity to rates both u.s dollars and soles Thank you. thank you

Speaker 2: Sure. Hi, Carlos. Again, we have talked about this before. We have the theoretical number of 100 basis points decrease in rates, both in soles and dollars, parallel shift. That number today is at 17 basis points. Sure. sure Hi, Carlos. hi carlos Again, we have talked about this before. again, we have talked about this before We have the theoretical number of 100 basis points decrease in rates, both in soles and dollars, parallel shift. we have the theoretical number of 100 basis points decrease in rates both in soles and dollars parallel shift That number today is at 17 basis points. that number today is at 17 basis points Fifteen of those come from the dollar part of the book and just two on the soles part. Again, this is a very theoretical example. As I mentioned, and I mentioned in the investor, actually, what we've seen in practice is our NIM growing while the rate in Peru has come down more than 300 basis points. The theoretical sensitivity there are those 17 basis points. We are expecting actually NIM to continue very strong and risk-adjusted NIM to grow in the coming years. Fifteen of those come from the dollar part of the book and just two on the soles part. fifteen of those come from the dollar part of the book and just two on the soles part Again, this is a very theoretical example. again this is a very theoretical example As I mentioned, and I mentioned in the investor, actually, what we've seen in practice is our NIM growing while the rate in Peru has come down more than 300 basis points. as i mentioned and i mentioned in the investor actually what we've seen in practice is our nim growing while the rate in peru has come down more than 300 basis points The theoretical sensitivity there are those 17 basis points. the theoretical sensitivity there are those 17 basis points We are expecting actually NIM to continue very strong and risk-adjusted NIM to grow in the coming years. we are expecting actually nim to continue very strong and risk-adjusted nim to grow in the coming years

Speaker 12: Thanks for the update. Thanks for the update. thanks for the update

Speaker 14: Our next question comes from Marcelo Mizahi from Bradesco BBI. Please go ahead with your question. Marcelo, is it possible your phone is on mute? We will move on to our next question. We have Andres Soto from Santander. Please go ahead with your question. Our next question comes from Marcelo Mizahi from Bradesco BBI. our next question comes from marcelo mizahi from bradesco bbi Please go ahead with your question. please go ahead with your question Marcelo, is it possible your phone is on mute? marcelo is it possible your phone is on mute We will move on to our next question. we will move on to our next question We have Andres Soto from Santander. we have andres soto from santander Please go ahead with your question. please go ahead with your question

Speaker 1: Good morning to all, and thank you for the presentation. Good morning to all, and thank you for the presentation. good morning to all and thank you for the presentation My question is regarding Yape and some of the numbers that you mentioned during the call. You said you expect revenue in Yape to triple by 2028. The revenue in Yape already represents 6.5% of Credicorp total revenue. It will be fair to assume that by 2028, that number should increase to 15%, the revenue contribution from Yape. If so, and making assumptions also regarding efficiency, the contribution to the bottom line should be in excess of 20%. Is this the way that you guys look at this? My question is regarding Yape and some of the numbers that you mentioned during the call. my question is regarding yape and some of the numbers that you mentioned during the call You said you expect revenue in Yape to triple by 2028. you said you expect revenue in yape to triple by 2028 The revenue in Yape already represents 6.5% of Credicorp total revenue. the revenue in yape already represents 6.5% of credicorp total revenue It will be fair to assume that by 2028, that number should increase to 15%, the revenue contribution from Yape. it will be fair to assume that by 2028 that number should increase to 15% the revenue contribution from yape If so, and making assumptions also regarding efficiency, the contribution to the bottom line should be in excess of 20%. if so and making assumptions also regarding efficiency the contribution to the bottom line should be in excess of 20% Is this the way that you guys look at this? is this the way that you guys look at this

Speaker 2: Yeah. To your point, Yape is going to be a bigger contributor year-over-year for Credicorp. We are expecting it to be around the 15% mark of not necessarily revenue, but net results for Credicorp in the next three years or so. Yeah. yeah To your point, Yape is going to be a bigger contributor year-over-year for Credicorp. to your point yape is going to be a bigger contributor year-over-year for credicorp We are expecting it to be around the 15% mark of not necessarily revenue, but net results for Credicorp in the next three years or so. we are expecting it to be around the 15% mark of not necessarily revenue but net results for credicorp in the next three years or so

Speaker 1: Okay. Okay. okay Even under that conservative assumption, Alejandro, if it represents 15% of income of earnings in 2028, currently, when you look at the four quarters, it represented less than 5%. For the full year, I would say 2.5%, something like that. You will see an earnings accretion in excess of 10% of the level that you have now. The ROE of Credicorp is already at 19%, even higher than that. The ROE by 2028 should be 21%. My point here is the 19.5% that you present as a medium-term target sounds conservative considering the potential for earnings accretion coming from Yape. Even under that conservative assumption, Alejandro, if it represents 15% of income of earnings in 2028, currently, when you look at the four quarters, it represented less than 5%. even under that conservative assumption alejandro if it represents 15% of income of earnings in 2028 currently when you look at the four quarters it represented less than 5% For the full year, I would say 2.5%, something like that. for the full year i would say 2.5% something like that You will see an earnings accretion in excess of 10% of the level that you have now. you will see an earnings accretion in excess of 10% of the level that you have now The ROE of Credicorp is already at 19%, even higher than that. the roe of credicorp is already at 19% even higher than that The ROE by 2028 should be 21%. the roe by 2028 should be 21% My point here is the 19.5% that you present as a medium-term target sounds conservative considering the potential for earnings accretion coming from Yape. my point here is the 19.5% that you present as a medium-term target sounds conservative considering the potential for earnings accretion coming from yape

Speaker 2: Sure. No, I think your numbers make a lot of sense. We mentioned around 19.5%. Again, we have elections in all the countries in this coming year. I would say we are usually conservative in that kind of views. Sure. sure No, I think your numbers make a lot of sense. no i think your numbers make a lot of sense We mentioned around 19.5%. we mentioned around 19.5% Again, we have elections in all the countries in this coming year. again we have elections in all the countries in this coming year I would say we are usually conservative in that kind of views. i would say we are usually conservative in that kind of views We're certainly going to come back and revise that at a later time when there's more certainty on the political outlook for the countries. Again, if everything works as planned, probably around 19.5% will be on the higher end of that concept, for sure. Again, we'll come and revise that later. We're certainly going to come back and revise that at a later time when there's more certainty on the political outlook for the countries. we're certainly going to come back and revise that at a later time when there's more certainty on the political outlook for the countries Again, if everything works as planned, probably around 19.5% will be on the higher end of that concept, for sure. again if everything works as planned probably around 19.5% will be on the higher end of that concept for sure Again, we'll come and revise that later. again we'll come and revise that later

Speaker 1: No worries. No worries. No worries. no worries No worries. no worries

Speaker 2: No. I mean, we're going to be around 19.5%, we're going to be on the round to the upside more than to the downside. That's what I was trying to say. No. no I mean, we're going to be around 19.5%, we're going to be on the round to the upside more than to the downside. i mean we're going to be around 19.5% we're going to be on the round to the upside more than to the downside That's what I was trying to say. that's what i was trying to say

Speaker 9: Andres, your pushback is this is Gianfranco. Your pushback is correct. Again, even though we're positive on the outlook of what could happen in the region, we're still in Latin America. Volatility is part of the game. That growth in terms of income at Yape, there are a lot of assumptions, there's execution risk, and so on. Andres, your pushback is this is Gianfranco. andres your pushback is this is gianfranco Your pushback is correct. your pushback is correct Again, even though we're positive on the outlook of what could happen in the region, we're still in Latin America. again even though we're positive on the outlook of what could happen in the region we're still in latin america Volatility is part of the game. volatility is part of the game That growth in terms of income at Yape, there are a lot of assumptions, there's execution risk, and so on. that growth in terms of income at yape there are a lot of assumptions there's execution risk and so on As you know us for a long time, yes, our outlook or our guidance is on the positive side. Yape may have a relevant positive impact on the upside of that. As you know us for a long time, yes, our outlook or our guidance is on the positive side. as you know us for a long time yes our outlook or our guidance is on the positive side Yape may have a relevant positive impact on the upside of that. yape may have a relevant positive impact on the upside of that

Speaker 15: Not today, but in three years can be also a little bit of cannibalization between several vehicles. That is not relevant at all now. Not today, but in three years can be also a little bit of cannibalization between several vehicles. not today but in three years can be also a little bit of cannibalization between several vehicles That is not relevant at all now. that is not relevant at all now

Speaker 1: Yeah. That is a fair assumption, Cesar. The cannibalization will come against Mibanco. This is a business with a much higher potential for ROE. It will be even accredited if that comes to happen. Yeah. yeah That is a fair assumption, Cesar. that is a fair assumption cesar The cannibalization will come against Mibanco. the cannibalization will come against mibanco This is a business with a much higher potential for ROE. this is a business with a much higher potential for roe It will be even accredited if that comes to happen. it will be even accredited if that comes to happen

Speaker 9: You are totally right, Andres. The cannibalization should generate value rather than destroy value. You are totally right, Andres. you are totally right andres The cannibalization should generate value rather than destroy value. the cannibalization should generate value rather than destroy value

Speaker 1: Okay. Sounds good. Thank you, guys. Congratulations on the results. Okay. okay Sounds good. sounds good Thank you, guys. thank you guys Congratulations on the results. congratulations on the results

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Our next question comes from Alonso Aramburu from BTG. Please go ahead with your question. Our next question comes from Alonso Aramburu from BTG. our next question comes from alonso aramburu from btg Please go ahead with your question. please go ahead with your question

Speaker 7: Yes. Hi. Good morning. Thank you for the call. Yes. yes Hi. hi Good morning. good morning Thank you for the call. thank you for the call Just following up on your recent comments, you mentioned that Yape is doing a pilot for the SME segment. So I'm just wondering if you can give us some color on that. How different is that to the strategy you're following compared to Mibanco? Is this targeting the same Mibanco clients? Are these different clients? Are you using reps to visit some of these clients? Just to give us some color into how you're approaching this via Yape. Just following up on your recent comments, you mentioned that Yape is doing a pilot for the SME segment. just following up on your recent comments you mentioned that yape is doing a pilot for the sme segment So I'm just wondering if you can give us some color on that. so i'm just wondering if you can give us some color on that How different is that to the strategy you're following compared to Mibanco? how different is that to the strategy you're following compared to mibanco Is this targeting the same Mibanco clients? is this targeting the same mibanco clients Are these different clients? are these different clients Are you using reps to visit some of these clients? are you using reps to visit some of these clients Just to give us some color into how you're approaching this via Yape. just to give us some color into how you're approaching this via yape

Speaker 9: Good morning a lot for this Gianfranco. We're approaching Yape in a very different way, a different model than the Mibanco model. It's basically based on transactions we gather through the app. So there's basically no human contact. That said, that model is much cheaper and much more efficient than the Mibanco model. But it's an untested model. Good morning a lot for this Gianfranco. good morning a lot for this gianfranco We're approaching Yape in a very different way, a different model than the Mibanco model. we're approaching yape in a very different way a different model than the mibanco model It's basically based on transactions we gather through the app. it's basically based on transactions we gather through the app So there's basically no human contact. so there's basically no human contact That said, that model is much cheaper and much more efficient than the Mibanco model. that said that model is much cheaper and much more efficient than the mibanco model But it's an untested model. but it's an untested model We're at the very initial stages, even though the vintages, which are not relevant yet, are performing quite well. You see that the Mibanco model is a more expensive model, but it's a very proven model with high ROEs, high NPS, and so on. Whereas Yape is an untested model. We still see that there's a lot of space. The larger one is the unbanked or underbanked. Still, Mibanco only has 20+% or low 20s market shares in the microfinance business. There's a lot of space for gaining share overall. As Cesar mentioned before, as of today, we are not worried whatsoever in terms of cannibalization between Mibanco and Yape. Maybe, I don't know, two, three years down the road, we may rethink the whole approach to the microfinance SME businesses here in Peru. We're at the very initial stages, even though the vintages, which are not relevant yet, are performing quite well. we're at the very initial stages even though the vintages which are not relevant yet are performing quite well You see that the Mibanco model is a more expensive model, but it's a very proven model with high ROEs, high NPS, and so on. you see that the mibanco model is a more expensive model but it's a very proven model with high roes high nps and so on Whereas Yape is an untested model. whereas yape is an untested model We still see that there's a lot of space. we still see that there's a lot of space The larger one is the unbanked or underbanked. the larger one is the unbanked or underbanked Still, Mibanco only has 20+ % or low 20s market shares in the microfinance business. still mibanco only has 20+ % or low 20s market shares in the microfinance business There's a lot of space for gaining share overall. there's a lot of space for gaining share overall As Cesar mentioned before, as of today, we are not worried whatsoever in terms of cannibalization between Mibanco and Yape. as cesar mentioned before as of today we are not worried whatsoever in terms of cannibalization between mibanco and yape Maybe, I don't know, two, three years down the road, we may rethink the whole approach to the microfinance SME businesses here in Peru. maybe i don't know two three years down the road we may rethink the whole approach to the microfinance sme businesses here in peru

Speaker 7: Thank you, Gianfranco. Thank you, Gianfranco. thank you gianfranco

Speaker 14: Once again, if you would like to ask a question, please press star and then one. To withdraw your questions, you may press star and two. Our next question comes from Marcelo Mizahi from Bradesco BBI. Please go ahead with your question. Once again, if you would like to ask a question, please press star and then one. once again if you would like to ask a question please press star and then one To withdraw your questions, you may press star and two. to withdraw your questions you may press star and two Our next question comes from Marcelo Mizahi from Bradesco BBI. our next question comes from marcelo mizahi from bradesco bbi Please go ahead with your question. please go ahead with your question

Speaker 4: Hello everyone. Thank you for the question. It's my first time here. Very good to be here with you. My question is regarding the insurance business. In the last couple of quarters, the loss ratios are going down on life and also in credit seguros. My question is to look forward if it is recurrent. Look forward, these loss ratios will return to the levels of 50% on life or not. Is this a new level of loss ratios to this line? Looking to the credit seguros, the same question. Thank you. Hello everyone. hello everyone Thank you for the question. thank you for the question It's my first time here. it's my first time here Very good to be here with you. very good to be here with you My question is regarding the insurance business. my question is regarding the insurance business In the last couple of quarters, the loss ratios are going down on life and also in credit seguros. in the last couple of quarters the loss ratios are going down on life and also in credit seguros My question is to look forward if it is recurrent. my question is to look forward if it is recurrent Look forward, these loss ratios will return to the levels of 50% on life or not. look forward these loss ratios will return to the levels of 50% on life or not Is this a new level of loss ratios to this line? is this a new level of loss ratios to this line Looking to the credit seguros, the same question. looking to the credit seguros the same question Thank you. thank you

Speaker 2: Sure. Hi, Marcelo. Sure. sure Hi, Marcelo. hi marcelo There's been a particular effect on the survival business related to a restatement done from some pension plans on the number of people registered. The thing is, it's been an unusual positive result, and it should go back to more normalized levels going forward. There's been a particular effect on the survival business related to a restatement done from some pension plans on the number of people registered. there's been a particular effect on the survival business related to a restatement done from some pension plans on the number of people registered The thing is, it's been an unusual positive result, and it should go back to more normalized levels going forward. the thing is it's been an unusual positive result and it should go back to more normalized levels going forward

Speaker 4: Okay. Those levels are around 20%-30% loss ratios, or will they come back to 50% as they were in the last year? Okay. okay Those levels are around 20%-30% loss ratios, or will they come back to 50% as they were in the last year? those levels are around 20%-30% loss ratios or will they come back to 50% as they were in the last year

Speaker 9: The short answer is what Alejandro mentioned. There's some exceptional impact on the loss ratios this quarter. Going forward to your question, is it going to be back at 50%? If I were to provide a short answer, it would be yes. A more structural answer is that the further we go into the bank assurance and life insurance business on a more retail and lower-end segment, the ratio should improve. Margins there are better. The short answer is what Alejandro mentioned. the short answer is what alejandro mentioned There's some exceptional impact on the loss ratios this quarter. there's some exceptional impact on the loss ratios this quarter Going forward to your question, is it going to be back at 50%? going forward to your question is it going to be back at 50% If I were to provide a short answer, it would be yes. if i were to provide a short answer it would be yes A more structural answer is that the further we go into the bank assurance and life insurance business on a more retail and lower-end segment, the ratio should improve. a more structural answer is that the further we go into the bank assurance and life insurance business on a more retail and lower-end segment the ratio should improve Margins there are better. margins there are better It is not that we are going to have the ratios we had this quarter, but in the medium to long run, the ratios we had in the past should be better going forward. It is not that we are going to have the ratios we had this quarter, but in the medium to long run, the ratios we had in the past should be better going forward. it is not that we are going to have the ratios we had this quarter but in the medium to long run the ratios we had in the past should be better going forward

Speaker 4: The last one about insurance. Do you guys believe that this line will maintain the pace of growing more than the other lines? Will it generate value, add value compared to the other lines of the banks? Thank you. The last one about insurance. the last one about insurance Do you guys believe that this line will maintain the pace of growing more than the other lines? do you guys believe that this line will maintain the pace of growing more than the other lines Will it generate value, add value compared to the other lines of the banks? will it generate value add value compared to the other lines of the banks Thank you. thank you

Speaker 9: Yes, great question. We always talk about the financial system in Peru being underpenetrated and so on. When you see the level of penetration in insurances, that is even, I do not know if the word is worse or better. Worse in terms of the Peruvian population coverage, but better in terms of business opportunity. Yes, great question. yes great question We always talk about the financial system in Peru being underpenetrated and so on. we always talk about the financial system in peru being underpenetrated and so on When you see the level of penetration in insurances, that is even, I do not know if the word is worse or better. when you see the level of penetration in insurances, that is even i do not know if the word is worse or better Worse in terms of the Peruvian population coverage, but better in terms of business opportunity. worse in terms of the peruvian population coverage but better in terms of business opportunity Going to your question, we are quite positive that that business should grow at a really high rate for the upcoming years. We are working very heavily on deploying new products, new channels, improving value propositions, and so on, so as to reach the underinsured in Peru. Going to your question, we are quite positive that that business should grow at a really high rate for the upcoming years. going to your question we are quite positive that that business should grow at a really high rate for the upcoming years We are working very heavily on deploying new products, new channels, improving value propositions, and so on, so as to reach the underinsured in Peru. we are working very heavily on deploying new products new channels improving value propositions and so on so as to reach the underinsured in peru

Speaker 4: Okay. Thank you very much. Okay. okay Thank you very much. thank you very much

Speaker 9: Thank you. Thank you. thank you

Speaker 14: Ladies and gentlemen, there appear to be no further questions at this time. I would like to turn the floor back over to Mr. Gianfranco Ferrari, Chief Executive Officer, for closing remarks. Ladies and gentlemen, there appear to be no further questions at this time. ladies and gentlemen there appear to be no further questions at this time I would like to turn the floor back over to Mr. Gianfranco Ferrari, Chief Executive Officer, for closing remarks. i would like to turn the floor back over to mr gianfranco ferrari chief executive officer for closing remarks

Speaker 9: Thank you. We are entering the final months of the year with strong operating foundations and a clear sense of strategic direction. I want to reiterate the core message we shared at our investor day. Our strategy is built not just to perform in favorable conditions, but to endure and thrive across cycles. Thank you. We are entering the final months of the year with strong operating foundations and a clear sense of strategic direction. thank you. we are entering the final months of the year with strong operating foundations and a clear sense of strategic direction I want to reiterate the core message we shared at our investor day. i want to reiterate the core message we shared at our investor day Our strategy is built not just to perform in favorable conditions, but to endure and thrive across cycles. our strategy is built not just to perform in favorable conditions but to endure and thrive across cycles Over the past four years, we've grown net income three times faster than Peru's nominal GDP, driven by the strength of our diversified business model, scalable platforms, and disciplined execution. In that context, we've raised our medium-term ROE target from around 18% to approximately 19.5%, reflecting the benefits of a more inclusive, digitally enabled business as we expand into new segments abroad in our addressable market. To get there, our strategy is focused on unlocking operating leverage and driving sustainable profitability. We will deliver high risk-adjusted NIM through a more retail-oriented loan portfolio, while increasing transactional and non-interest income from our disruptive initiatives. Together, these drivers will accelerate income growth, enhance efficiency toward the 42% level, and strengthen our ability to generate superior long-term returns. At the same time, we remain mindful of the broader context. Over the past four years, we've grown net income three times faster than Peru's nominal GDP, driven by the strength of our diversified business model, scalable platforms, and disciplined execution. over the past four years we've grown net income three times faster than peru's nominal gdp driven by the strength of our diversified business model scalable platforms and disciplined execution In that context, we've raised our medium-term ROE target from around 18% to approximately 19.5%, reflecting the benefits of a more inclusive, digitally enabled business as we expand into new segments abroad in our addressable market. in that context we've raised our medium-term roe target from around 18% to approximately 19.5% reflecting the benefits of a more inclusive digitally enabled business as we expand into new segments abroad in our addressable market To get there, our strategy is focused on unlocking operating leverage and driving sustainable profitability. to get there our strategy is focused on unlocking operating leverage and driving sustainable profitability We will deliver high risk-adjusted NIM through a more retail-oriented loan portfolio, while increasing transactional and non-interest income from our disruptive initiatives. we will deliver high risk-adjusted nim through a more retail-oriented loan portfolio while increasing transactional and non-interest income from our disruptive initiatives Together, these drivers will accelerate income growth, enhance efficiency toward the 42% level, and strengthen our ability to generate superior long-term returns. together these drivers will accelerate income growth enhance efficiency toward the 42% level and strengthen our ability to generate superior long-term returns At the same time, we remain mindful of the broader context. at the same time we remain mindful of the broader context While Peru continues to face political uncertainty, including its seventh presidential transition in under a decade, its macroeconomic institutions remain intact. This is a familiar pattern: political volatility coexisting with economic resilience. That said, political uncertainty does carry an opportunity cost. We hope that in time, greater political stability will allow the country to fully unlock its growth potential. Early signs from the new administration point to a more pragmatic tone and renewed efforts to engage the private sector. Business sentiment is gradually improving, with more companies planning to invest, hire, and expand activity in the upcoming quarters. In this environment, our focus is clear: execute with discipline, expand financial inclusion, and deliver long-term value for our shareholders and the societies we serve. Thank you for your continued trust and partnership. While Peru continues to face political uncertainty, including its seventh presidential transition in under a decade, its macroeconomic institutions remain intact. while peru continues to face political uncertainty including its seventh presidential transition in under a decade its macroeconomic institutions remain intact This is a familiar pattern: political volatility coexisting with economic resilience. this is a familiar pattern political volatility coexisting with economic resilience That said, political uncertainty does carry an opportunity cost. that said political uncertainty does carry an opportunity cost We hope that in time, greater political stability will allow the country to fully unlock its growth potential. we hope that in time greater political stability will allow the country to fully unlock its growth potential Early signs from the new administration point to a more pragmatic tone and renewed efforts to engage the private sector. early signs from the new administration point to a more pragmatic tone and renewed efforts to engage the private sector Business sentiment is gradually improving, with more companies planning to invest, hire, and expand activity in the upcoming quarters. business sentiment is gradually improving with more companies planning to invest hire and expand activity in the upcoming quarters In this environment, our focus is clear: execute with discipline, expand financial inclusion, and deliver long-term value for our shareholders and the societies we serve. in this environment our focus is clear execute with discipline expand financial inclusion and deliver long-term value for our shareholders and the societies we serve Thank you for your continued trust and partnership. thank you for your continued trust and partnership

Speaker 14: Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect your lines. Thank you. Thank you, ladies and gentlemen. thank you ladies and gentlemen This concludes today's presentation. this concludes today's presentation You may now disconnect your lines. you may now disconnect your lines Thank you. thank you