Credicorp Ltd.

Good morning, everyone. I would like to welcome you all to the Credit Corp Limited fourth quarter 2022 conference call. A slide presentation will accompany today's webcast, which is available in the investor section of Credit Corp's website. Today's conference call is being recorded. As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. If you are using a speaker phone, please make sure your mute function is turned off to allow your signal to reach our equipment. Now it is my pleasure to turn the conference over to Credit Corp's IRO Milagros Siquintas. You may begin.

Thank you and good morning. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Cesar Rios, our Chief Financial Officer. Participating in the Q&A session will also be Reynaldo Llosa, Chief Risk Officer, Diego Cabrero, Head of Universal Banking, Francesca Razos, Chief Innovation Officer, Cesar Rivera, Head of Insurance and Pensions, and Carlos Sotelo, 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, and I refer you to the forward-looking statement section of our Earnings and Beliefs and Recent Filings with the FEC. We assume no obligation to update or revise any forward-looking segments to reflect new or changed events or circumstances. Gianfranco Ferrari will open the call and will comment on the key milestones achieved in 2022, followed by Cesar Rios, who will comment on the macro environment in which we work, our financial performance, and provide our guidance for 2023. Gianfranco, please go ahead.

Thank you, Vidalos. Good morning, everyone. Thank you for joining us. While we reported a solid quarter, I would like to reflect on some of the key accomplishments of the year. First of all, I am closing my first year as CEO of Credit Corp. As you know, when I came into the role earlier in 2022, I had already spent many years with the group and in particular at BCP. I had worked as part of the prior leadership to establish the foundation of what are the key strategic initiatives that guide us today. In particular, I am very proud of the important work we've done in advancing our governance and operating structures over the last three years, aimed at ensuring that sustainability would remain an important part of how we do business. Today, sustainability is being integrated into our strategy, propelling our ability to become the change agent that we aspire to be and driving positive impact in the countries in which we operate. As sustainability becomes more entwined with the core of our business strategy, it is present in how we think and act every day. We have shifted the way we operate in record time because our purpose and commitment have been embraced from top-down to bottom-up, leveraging our competitive advantages to be a key enabler of financial inclusion and financial education in the Andean region. We've launched multiple initiatives across our subsidiaries. I would like to highlight that in 2022, we have financially included more than 1.1 million people through YAPI, and our financial education web series at BCP surpassed 47 million views. This year has also been a year of learning for me and an opportunity to flex my strengths. I reinforced my knowledge of all our businesses including insurance and wealth management, which were newer to me. Moreover, I lend a hand to our overall digital transformation strategy based on my experience at BCP, where we are more advanced in this area. Fundamentally, our digital strategy is aimed at facilitating our ability to live our purpose and achieve our sustainable growth objective for expanding our total addressable market and strengthening our operational drivers. We highlighted on our Digital Day in March of last year the innovation initiatives that are taking place through innovation labs where we're disrupting ourselves and expanding our tech capabilities and data-driven approach at each of our subsidiaries. Our more mature disruptive initiatives, such as IAPE, keep growing exponentially and are positively impacting society. At the end of the year, YAPE had over 11 million users in Peru and is a daily part of YAPEROS' lives solving their financial needs. To give you a sense of how prevalent YAPEROS are in Peru, approximately half of the adult population in Peru use YAPE. We are on the track to be the payment network for Peru. Now, please turn to slide one. Overall, we have had a very positive year. Not only based on our solid financial results, but most importantly, I would say that as a holding, we have already absorbed the negative impacts due to COVID. On a full year basis, our net income grew almost 30%, and ROE was 16.7. We maintained our prudent stance in managing risk, and our growth of risk is on the road to normalization. We go into 2023 with a very strong balance sheet to both support our initiatives as well as navigate any near-term volatility in front of us. It is important to highlight that despite continued political instability, fundamentals in Peru remain strong, including the relatively low levels of debt to GDP, important levels of international reserves, and an independent central bank led by a technical and experienced board. Having said that, there are some important highlights of the year that I would like to point out. First, the very strong performance of BCP, turning in an ROE of 22% for the year. Second, Mibanco is on track to deliver the ROEs we expect for that business. And finally, Pacifico, a business where you had to express reservations in the past, has now reached an ROE of 19.2. We are optimistic about our ability to keep increasing the levels of penetration of this business. On the other hand, we still face a challenging environment for investment banking and wealth management, requiring us to redefine our strategy going forward to reach the ROEs we aspire to with this business. I expect that we will be able to share more details on this regard during our next call. Before I pass the word to Cesar, I do want to acknowledge how concerned we are that, again, the continued political turmoil and the social unrest we're experiencing in Peru after the failed coup of December 7th has resulted in near-term headwinds not only to our businesses, but most importantly, to Peru and its citizens. We at Credit Corp remain focused on fulfilling our purpose and take very seriously our responsibility and obligation to step up, speak up, and more proactively work to solve the fundamental structural issues in the countries we operate. We are accelerating our agenda of inclusion and financial education, key factors related to poverty alleviation. Through greater inclusion, we aim to offer to those more vulnerable greater levels of security through savings, income generation, and economic independence. Cesar, please go ahead.