Credicorp Ltd.

Good morning, everyone. I would like to welcome you to the Credit Corp Limited fourth quarter 2024 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 1 on your telephone keypad. If you are 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 IARNO, Milagros Dequanes. 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, Diego Cabrera, Head of Universal Banking, Cesar Rivera, CEO Pacifico, and Carlos Otelo, MiBanco 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, current expectations and beliefs and are subject to a number of risks and uncertainties. And I refer you to the forward-looking statements section on our early release and recent filing with the SEC. We assume no obligation to update or revise any forward-looking statements to affect new or changed events or circumstances. Gianfranco Ferrari will start the call with remarks on a brief overview of our results and business strategy development for 2024, followed by Alejandra Perez Reyes who will comment on the macroenvironment improvement, our financial performance, and provide our outlook for 2025. Gianfranco, please go ahead.

Thank you, Milagros. Good morning, everyone. I'm very pleased with our full view results. delivering record profitability of 5.5 billion soles and an ROE of 16.5%, which equals 17.2% aligned to our guidance, while excluding one-off charges related to the Sartor case. Operationally, the fourth quarter was robust, with improved cost of risks at BCP and Mibanco, increased lending, and exceptional transactional volumes at BCP and YAPI. providing a strong foundation for sustained growth in the years ahead. These achievements underscore the impact of our strategic initiatives, which have strengthened resilience, enhanced efficiency, and reinforced our competitive advantages. These enable us to navigate periods of volatility effectively while keep capitalizing on market opportunities to drive future growth and further advance our strategy of decoupling from the macroeconomic cycles. Our efforts aligned well with Peru's economic recovery, which saw GDP expand by over 3% in 2024 after contracting in 2023. Inflation fell to 2%, its lowest level in four years, as the central bank lowered its policy rate to support the recovery. Improved weather boosted fishing, primary manufacturing, and agriculture, while strong copper and record high coal prices further supported economic performance. Despite gains from increased public investment, private sector investment remains subdued. Achieving long-term sustainability growth will require political stability. Responsible fiscal policies and structural improvements in essential services to fully restore business confidence. Looking ahead, we expect the Peruvian economy to grow around 3% in 2025, supported by historically high terms of trade, controlled inflation, and continued recovery in real wages. However, the onset of the electoral campaign toward the end of the year may introduce uncertainty as campaign activities intensify. Reported ROE came in slightly below expectations as we chose to prioritize client relationships and mitigate the risk related to the SARTOR model in the fourth quarter. However, adjusting for this, we would have delivered an ROE of 17.2% in line with expectations. Our results were primarily driven by strong results at our universal banking and insurance and pension business. lines alongside continued improved performance at MiBanco. This was further supported by growth in diversified revenue streams and record high transactional volumes, particularly in FX and digital transactions during the fourth quarter. This shift enhances our revenue mix, advancing our strategy to diversify revenue income sources with the goal of achieving 10% of risk-adjusted revenues from new businesses by 2026. Risk-adjusted NIM continue to strengthen, underpin by disciplined interest rate management, a leading low-cost funding position, and enhanced credit risk management. Meanwhile, our investments in innovation and digital capabilities are delivering tangible results, driving a better-than-expected efficiency ratio, reinforcing our competitive advantages and deepening client relationships. Client satisfaction also improved with a 5% percentage point increase in average NPS across our businesses, while these efforts also promote greater financial inclusion. Lastly, the significant asset quality improvement since late 3Q of 2024 has led us to gradually increase our risk appetite and allowed for a more proactive lending approach at both DCP and Nibanco, particularly in the retail segment, reflecting the improved operating conditions. Please move to slide three. We're advancing our strategic priorities to proactively address challenges and capitalize on opportunities, ensuring our long-term competitiveness. These priorities are attracted attracting and retaining top talent through a compelling value proposition, accelerating digital transformation and innovation, and integrating sustainability into our core business strategy. We cultivate innovating teams with a growth mindset, aligning their purpose with Credit Corps to unlock potential. Through continuous training and development, we're making Credit Corps an increasingly agile organization and enhances both efficiency and experience. Our strong value proposition led to a 12-point employee NPS increase, making Credit Corp Peru's top employer brand for executives. Additionally, five of our companies are number one in their respective categories in the Merco Talento Peru reputational ranking. To further reinforce our identity, we launched Credit Corp Cultures, a strategic framework built on shared values of teamwork, ambition, innovation, customer centricity, and ethics. We drive the digital transformation innovation by enhancing AI and cybersecurity capabilities. Over the past decade, we've advanced data analytics and technology, boosting productivity and customer experience. AI-driven initiatives, such as improved voice response at BCP contact center, have increased self-service interactions to 40%. Moreover, the implementation of GitHub Copilot among over 1,500 developers boosted productivity by over 30%. We strengthened internal cybersecurity management, invested in new technologies, and improved processes to elevate protection standards. Recognizing that cybersecurity is an ongoing priority, we continuously monitor and adapt to emerging threats while equipping both employees and clients with enhanced digital security practices. We integrate sustainability into our strategy to drive meaningful change. As a leader in financial inclusion and education in Peru, we have brought over 5.7 million people into the financial system since 2020 and expanded access to insurance with more than 3.6 million inclusive policies issued. We've also allocated over $1.5 billion in sustainable financing across the agriculture, fishing, energy, and textile sectors. These are just a few of our many initiatives aimed at improving lives and reducing poverty in Peru. Looking ahead, we will continue to focus on these three fundamental pillars, talent, digital transformation, and sustainability, as key drivers of Credit Corp's long-term success. Let's turn to a summary of performance across our business units and disruptive initiatives. Our balanced portfolio innovation strategy, including disruptive initiatives, allow Credit Corp to decouple from the macro and drive resilience, profitability, and long-term value creation. At BCP, we prioritize customer experience and long-term competitiveness through investments in digital channels like YAPE and mobile banking, which drive exponential transaction growth. We now have 36% digital customers. Our branch modernization efforts, including quick service modules and digital allocation zones, supports this evolution. Additionally, we improved multi-channel value propositions, raised MPS across segments, while our focus on optimized credit risk management in consumer and SME segments is unlocking significant growth potential. MiBanco's performance improved, driven by the broader economic recovery, enhanced risk management, and operational and efficiency improvements. Our hybrid model helped navigate an acute cycle in Peru's microfinance system, supporting clients with great facilities and training. We shifted to lower-volume, higher-profit credit tickets, improved monitoring and collection, and implemented more effective risk control than our peers. We also attracted savings, diversifying income and strengthening resilience, boosting customer NPS by over four percentage points and turning in solid results in the quarter. Looking ahead, we're exploring additional synergies with Credit Corp to drive further structural improvements to achieve our minimum target of 20% of ROE. Pacifico served our over 6.5 million clients in 2024, expanding its offerings through commercial partnerships and leveraging the credit corp ecosystem with a particular focus on retail via bank assurance and YAPI. We developed a new strategic alliance, including a collaboration with Falabella in embedded insurance. As a result, our NPS increased two percentage over the year. Our commitment to enhancing digital capabilities supports our ambition of making Peru the most protected country in Latin America. At Credit Corp Capital, we recovered income and profitability, driven by capital markets and wealth management, with growth in assets under management. These results reaffirm the strength of our strategic approach. Following the Chilean Financial Markets Commission intervention of Sartor, a third-party fund manager, we prioritized client interest by proactively protecting their investments in our factoring funds. While we expect a partial recovery of funds, our actions reaffirm our commitment to long-term client relationships. We continue to drive revenue growth through our consolidated innovation strategy. IAPE, now Peru's most recognized brand, reached profitability in 2024 with nearly 14 million active users. As a leading payments platform, IAPE has nearly doubled its transaction volume in 2024. Expanded credit access with 1.8 million users with credit and became Peru's fifth largest e-commerce player. In Bolivia, IAPE has emerged as a top digital wallet with over 1.2 million active users. CREALO, our corporate venture capital arm, remains at the forefront of innovation, with Tempo in Chile set to become the country's first neobank, already serving over 750,000 users. Strategic internal collaborations like Monokera, a platform linking insurance to digital channels, is enabling YAPE to become a digital insurance distributor for Pacifico. With that, I will now turn the call over to Alejandro who will go into the highlights of the quarter and provide further detail on the macro environment, each of our operating businesses and our consolidated results. Alejandro.