Credicorp Ltd.

Good morning, everyone. I would like to welcome you to the Credit Core Limited third quarter 2024 conference call. A slide presentation will accompany today's webcast, which is available in the investor section of Credit Core'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're using a speaker phone, please make sure you mute your function and it's turned off and to allow the signal to reach our equipment. Now it is my pleasure to turn the conference call over to Credit Corp's IRO Milagros Y Glenas. You may now begin.

Thank you and good morning, everyone. Speaking on today's call will be Gianfranco Serrari, 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, Carlos Sotelo, MiBanco Chief Financial Officer. Before we proceed, I would like to make the following safe harbor statement. Today's fall 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 statements section of our earnings release and recent findings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or statistical standards. Gianfranco Ferrari will begin the call with remarks on the improved macro environment, a brief overview of our quarter-year results and recent developments, followed by Alejandro Perez-Reyes, who will provide a more detailed analysis of climate economic indicators, our financial performance, and revised outputs for 2024. Gianfranco, please go ahead.

Thank you, Milagros. Good morning, everyone. Thank you for joining us today. The positive momentum we saw in the first half continued into the third quarter. allowing us to deliver a record high bottom line of $1,523 million this quarter. Additionally, we distributed our special dividend, achieving a total dividend payout of 75.3% to date. This performance was driven not only by an improving macroeconomic climate, liquidity inflows captured from pension withdrawals, and a relatively more stable political environment. But more importantly, by the strategic initiative we've implemented across the organization. We've reached a pivotal inflection point where the benefits of these initiatives are consistently materializing across our businesses, reinforcing our competitive strengths and further decoupling our performance from external macroeconomic factors. Despite geopolitical tensions in the Middle East, we are maintaining our GDP growth projections of 3% for 2024 and 2.8% for 2025, on continuing signs of recovery in Peru. Though we do recognize that ongoing developments in that region and the results of the U.S. elections could cause some volatility. In October, inflation rose to 2% from 1.8% in the previous month, which was the lowest level in nearly four years. As such, it remains within the central bank's target range of 1 to 3%. Our strategy to diversify revenue streams with the goal of generating 10% of the risk-adjusted revenues from new businesses by 2026 is to strengthen the resilience in the current environment. This approach is particularly important given the slow and unexpected recovery in business confidence. which impacts private sector investment and demand for wholesale loans. At the same time, we remain committed to truly managing retail loan growth. Importantly, we are seeing a reduction of NPLs, supported by additional liquidity from pension withdrawals. As discussed during our recent strategic update, we remain truly focused on deepening market penetration with new value propositions, exploring untapped business segments and accelerating the adoption of transformative technologies. While we remain committed to leading the way in shaping the financial products and customer experience of the future, we will do so with a disciplined approach, ensuring alignment with our strategic goals and improving financial management. Now, moving onto the regulatory front, after years of political debate, Peru enacted pension system reform in September, marking a significant step towards enhancing financial security for retirees. We're optimistic about its potential to strengthen the system's ability to channel national savings into infrastructure and productive investments, driving long-term economic growth. Before turning to our third quarter results, let me discuss a few recent corporate developments. Starting with Tempo, our digital world in Chile. After quickly establishing a strong presence in a competitive market, we received provisional approval from the Chilean Financial Market Commission on October 25th to create a new banking entity named Tempo Bank Chile. This is a significant milestone from credit cards expansion into the Chilean financial market as Tempo advances towards securing full operational authorization which we expect to happen in 2025, becoming the first digital bank to operate in Chile. Next steps for TEMPO to become a new bank involve obtaining existence and operational authorization from the CMS. Furthermore, reaffirming our commitment to innovation and our goal of revolutionizing the financial ecosystem in the region, Francesco Raffo, our Chief Innovation Officer, has resigned from her position as Deputy General Manager at DCP to focus exclusively on leading innovation at Credit Corp and continue the transformation of the financial markets in Peru and Latin America. Lastly, I'm pleased to share that on October 31st, we announced the acquisition of the remaining 50% stake in our joint venture with Compresas Van Medica that includes three businesses, the PEC Medical Insurance, corporate health insurance for employees, and medical services. The acquisition strengthens Credit Corp's ability to fulfill its aspiration of creating a more sustainable and inclusive economy by improving insurance and healthcare access while advancing financial inclusion in Peru. Turning now to the third quarter results. We delivered a strong ROE of 18.5%, primarily driven by universal banking and insurance. and supported by diversified revenue streams and high-level transactional activities in our recovering economy. Risk-adjusted MIM improved, reflecting a disciplined interest rate management strategy, along with our leading low-cost funding position and low operations. Notably, our broad solvency allowed us to declare a special dividend of 11 soles per share while also contemplating our plans for continued sustainable growth. We're witnessing significant benefits from our investments in innovation and enhancing digital capabilities. We strengthen our competitive modes, elevate our relationship with current clients, and promote financial inclusion. Looking ahead, we maintain our GDP growth expectation of 3% for this year and expect a similar outlook for 2025. NIVANCO's performance is improving, driven by both the overall economic recovery and the specific learnings and measures taken regarding origination, monitoring, collections, and rescheduling processes. We're continually evaluating opportunities for further structural risk management and operational improvements to achieve our medium target of a 20% ROE. As we make progress, we will keep you updated. We remain committed to the long-term growth potential of the market served by Nibanco, given its slow market penetration. Additionally, we have seen increasing synergies between Nibanco and IAPE, derived from the potential for enhanced insights from the massive amounts of data collected by both companies. I will now turn the call over to Alejandro, who will go into further details on the macro environment, each of our operating businesses, and our consolidated results. Alejandro?