Credicorp Ltd. : Credicorp updates on "Fenomeno El Nino"
August 07 2017 - 8:30PM
Lima, PERU, August 7th, 2017 -
As per the Press Release made on March 31st, 2017,
Credicorp's management provides to shareholders up-to-date
information about the effects of El Nino phenomenon ("FEN" by its
Spanish initials).
The assessment of the FEN's effect
on Credicorp's businesses indicates that:
A.1 Impact
on Grupo Pacífico (PGA)
The impact on the insurance
business was according to the initial estimates provided in the
press release, and it amounted to approximately S/ 22 million. This
was due to caps on maximum losses included in the reinsurance and
catastrophic policies.
A.2 Impact on BCP
and Mibanco
-
Wholesale Banking
-
After a case-by-case evaluation of
Wholesale Banking's clients in the areas affected by FEN, the
results showed that the impact on them was mild and even below the
initial estimates. In this context, the risk quality of the
Wholesale Banking's loan book was not affected.
-
Furthermore, it is important to highlight that
the FEN's impact has not required us to downgrade the risk rating
of any client.
-
Retail Banking and Mibanco
-
On March 31st, 2017,
Credicorp provided preliminary figures indicating that the loan
portfolio in the regions hit by FEN represented approximately S/
3,900 million, of which S/ 3,500 million were held by BCP and S/
400 million were held by Mibanco. Nonetheless, after offering SKIPs
to clients affected by FEN, the impact was reduced to a portfolio
of SKIP loans of approximately S/ 1,490 million.
-
Nowadays, BCP and Mibanco are focused
on this portfolio of SKIP loans. Relationship Managers are
contacting clients to understand their current situation and to
define if it is necessary additional rescheduling of the debt after
the SKIP period expires.
-
Considering that the portfolio of SKIP
loans has just started to expire, it is prudent to wait until the
vast majority of loans reached maturity to assess the final impact
of FEN.
-
With regards to loan origination in the
areas affected by FEN, we have resumed our activities under a
prudent risk policy, and we will return gradually to our
business-as-usual mode.
Finally, it is important to
mention that, as we have done in the last quarters, Credicorp will
continue to inform about the impact of FEN in the Quarterly
Earnings Releases, as long as it is relevant.
The information in this Press
Release contains "forward-looking statements," which are statements
related to future, not past, events. Forward-looking statements
discuss our expected future business and financial performance and
financial condition, and contain words such as "anticipate,"
"believe," "could", "estimate," "expect," "forecast," "indicate,"
"intend," "plan," "see," "seek," "will," or "would".
Forward-looking statements, by their nature, address matters that
are uncertain, including our discussion of the potential impact of
FEN on our businesses, our clients and our financial
condition. There are many uncertainties that could cause the
actual impact on our businesses, our clients and our financial
condition to be materially different than those expressed in these
forward-looking statements, including those expressed above and the
other factors that are described in "Risk Factors" in our Annual
Report on Form 20-F for the year ended December 31, 2015.
These or other uncertainties may cause our actual future results to
be materially different than those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
About Credicorp
Credicorp Ltd. (NYSE: BAP) is the leading financial holding company
in Peru. It is composed of Banco de Credito del Peru (BCP),
Atlantic Security Holding Corporation (ASHC), Grupo Pacifico
Seguros, Prima AFP, and Credicorp Capital, which are among Peru's
top-rated brands. Credicorp 's primary businesses are banking
(commercial & investment banking and retail banking, including
SME and micro-lending); insurance (including property and casualty,
life and health insurance); pension funds (private pension fund
management services); and brokerage services (including trust,
custody and securitization services, asset management and
proprietary trading and investment).
For further information please contact the IR
team:
IRCredicorp@bcp.com.pe
Investor Relations
Credicorp Ltd.
PDF doc.: Credicorp updates on
"Fenomeno El Nino"
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Credicorp Ltd. via Globenewswire
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