Credicorp Ltd.

Good morning, everyone. I would like to welcome you all to the Credit Corp Limited fourth quarter 2020 conference call. We now have all of our speakers in conference. Please be aware that each of your lines is in a listen-only mode. At the conclusion of today's presentation, we will open the floor for questions, and at that time, instructions will be given as to the procedure to follow if you would like to ask a question. With us today is Mr. Walter Bailey, Chief Executive Officer, Mr. Gianfranco Ferrari, Deputy Chief Executive Officer, Mr. Alvaro Carrera, Deputy Chief Executive Officer, Mr. Reynaldo Llosa, Chief Risk Officer, Mr. Cesar Rios, Chief Financial Officer, and Mrs. Milagros Seguinas, Investor Relations Officer. And now it is my pleasure to turn the conference over to Credit Corp. Chief Financial Officer, Mr. Cesar Rios. Mr. Rios, you may now begin.

Thank you. Good morning and welcome to the ECOPS conference call of our earnings results for the fourth quarter of 2020. Since our previous conference call, economic reactivation in Peru has continued at a better than expected pace. In seasonally adjusted terms, GDP in the last quarter of 2020 It stands around 3% below the pre-pandemic levels. Our estimates suggest GDP decline around 11.3% in 2020 due to the COVID-19 pandemic, which is better than initially forecast. The job market has also continued to recover as indicated by data on payrolls managed through the banking sector. The external sector has also provided favorably As copper prices have reached levels not seen in almost eight years, we expect the GDP to rebound between 8% and 10% in 2021, underpinned by high copper prices, capital inflows to emerging markets, and expansive monetary and fiscal policies in the local front. Next slide, please. Two significant factors are driving uncertainty in the current context. The sanitary situation generated by COVID-19 has deteriorated in developed and emerging countries over the last few weeks. The world's data on excess mortality reflects this reality. The government has established restrictions, measures based on the severity of COVID-19 indicators, which include the high, very high, and extremely risk levels. On January 28, the government ordered a new localized lockdown from January 31st to February 14th in regions that registered extreme risk levels of COVID-19 indicators, including Metropolit and Lima. The effects of these restrictions will slow down the recovery in the commerce and service sectors, but other sectors, including mining, fishing, manufacturing, and construction, will continue to produce. Downside risks to our current GDP growth forecast of 8% to 10% might arise if the sanitary situation deteriorates further and more restrictive lockdowns are mandated. However, vaccine doses will arrive in Peru in February and the vaccination process will begin immediately. Second, Peru will hold general elections on April 11, 2021. The latest survey showed candidates Your foresight leading voters' preferences with 17 of total votes, followed by Keiko Fujimori, Julio Guzman, Veronica Mendoza, and Johnny Lestano, who are neck and neck for second place as of the date of the poll. It is still early to predict outcomes. The political landscape continues to be marked by uncertainty that will play out in coming months. It is important to note that according to the latest surveys, 25% of voters are undecided, intent to leave the polls blank or will initiate ballots. The second round of presidential election is set to be held on June 6, 2021. Other relevant events in countries in which credit corporate rates include a low path in Bolivia in January 2021, which gives eligible borrowers the option of a six-month grace period. This facility is in addition to the loan deferrals implemented in 2020, which led to both interest revelations and zero interest rates in permanent charge in December 2020. We are closely monitoring the effect of these measures in our business at BCC Bolivia. In Chile, elections will be held on April 11th to elect the members of the Constitutional Assembly, regional governors, mayors, and councilmen. General elections are set for November 2021. Next slide, please. The Peruvian financial system has evolved favorably, hand in hand with economic recovery in the last quarter of 2020. According to data from the central bank, loan growth in December stood at 12.3% year-over-year at a constant exchange rate, the highest growth rate since 2013, and they're finished by the effect of reactive loans. If we exclude the effect of reactive loans, total loans declined 4.6% year-over-year, importantly. there are signals of recovery in loan origination in the retail segment, which includes consumer and mortgage loans. In this context, Peru boasted one of the highest loan growth rates in the region in 2020. For 2021, we expect total financial system loans in Peru to grow around 2% as the effect of reactive loans start to resume and struggle the loans recover. Lastly, we would like to comment on recent events on the economic policy and regulatory . The central bank recently announced monetary measures to expand .

Excuse me, everyone, and please remain on the line as we reconnect with our speaker. Thank you. Thank you. THE END