Credicorp Ltd.

Good morning, everyone. I would like to welcome you to the Credit Corp Limited first quarter 2025 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 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 Seguenas. 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 Rio, Chief Risk Officer, Cesar Rivera, Head of Insurance and Pension, and Carlos Otello, Mi Banco 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 sections of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Gianfranco Ferrari will begin the call with remarks on the improved macroenvironment, a brief overview of our quarterly results, and on how Peru is positioned amid global insurgencies, followed by Alejandro Perez-Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for 2025. Gianfranco, please go ahead.

Thank you, Milagros. Good morning, everyone, and thank you for joining us today. I want to begin by saying that I'm confident in Peru's macroeconomic fundamentals and Credit Corp's potential to lead and generate value within it. The economy is rebounding faster than expected with momentum across sectors from construction to retail and from agriculture to services. This is translating into higher private investment expectations and formal employment recovery. Peru's first quarter 3.9% GDP growth confirm this trend, supported by private spending, lower inflation, and terms of trade at record levels. Declining interest rates and the business cycle recovery are stimulating credit demand and unlocking growth in the private sector. Despite lingering political uncertainty, Peru's macroeconomic policy has remained broadly responsible. Even modest political stabilization could unlock meaningful upside. and at CrayCorp we are well positioned to capture it. We continue to monitor global developments, including President Trump's announcement of a 10% tariff on U.S. imports from all its trading partners. While the direct impact of this tariff on Peru's GDP is expected to be limited, the broader concern is how these developments may affect global growth and commodity prices given our position as a small and open economy where up to 60% of GDP volatility originates from external factors. This issue is particularly relevant as China and the US are Peru's main trading partners, and China is a key destination for Peru's copper exports. Given the rapidly evolving environment, it remains too early to fully assess the potential effects. Nevertheless, we are closely monitoring developments and are prepared to act as necessary. Against this backdrop, Credit Corp. delivered a solid first quarter. We saw resumed loan growth, especially in wholesale banking and individuals, while maintaining a prudent risk approach. Risk-adjusted NIM improved year-over-year, driven by lower provisioning. Profitability remains strong underpinned by operating dynamics and our ability to leverage Peru's cyclical rebound. These outcomes result not only from favorable macro conditions, but also from intentional strategic investments. We've modernized core systems, expanded digital capabilities, and redesigned key client journeys across universal banking, microfinance, insurance, and wealth management. Turning now to the first quarter results. We reported a high ROE of 20.3% as strong operating results were further boosted by extraordinary gains related to the closing of the acquisition of the remaining 50% stake in the joint venture with Empresas Banmedica. Excluding this non-recurring gain, ROE would have been 18.4%, which still exceeded expectations and reflects solid fundamentals across our core businesses. Operational performance was strong across universal banking and insurance and pensions. Performance improved microfinance alongside continued growth in non-interest income, particularly from fee-based and transactional volumes. We achieved 5.4% of risk-adjusted revenues from new businesses this quarter, advancing toward our 10% target by 2026. We're seeing a reactivation of credit demand across our main lending segments. In Q1, loan growth was particularly robust in wholesale banking short-term loans and, to a lesser extent, individuals and MiBanco. We expect retail segments and microfinance to accelerate in the coming quarters. Risk-adjusted NIEM strengthened sequentially boosted by enhanced asset quality and a resilient underlying NIM, even as interest rates declined, cushioned by our increasing low-cost funding base. On the funding side, deposit growth remains strong, driven by system liquidity and increased client trust. Our sustained investments in service and digital platforms have deepened client relationships and we've gained market share in low-cost deposits. reaching 41.3%. The improving asset quality reflects proactive measures we've taken since 2023, tightening origination standards, repricing risk, strengthening low-risk scheduling, and investing in analytics, alongside a favorable macro environment. We also continue to enhance our risk management capabilities as our risk transformation project progresses and is expected to deliver more material impacts starting in 2026. Additionally, our strong solvency has enabled us to increase our dividend to 40 solids per share while also supporting our plans for sustained long-term growth. Our efficiency ratio is at 45.7% within our guidance range. as strategic investments in innovation and digital capabilities continue to drive diversified income streams and scalable growth through deeper market penetration. We continue to embed sustainability deeply into our strategy, given that we view sustainability as tied directly to business performance. From inclusive finance, financial education, and green loans to environmental risk management, and development of social impact metrics, Our initiatives are aligned with long-term value creation. We recently published our updated sustainability framework from 2025 to 2030 on our website, a more focused action-oriented framework that reflects our commitment to inclusive, sustainable growth. We invite investors to review the full strategy and welcome feedback as we continue to strengthen our sustainability approach. This quarter also included a P&L one-off gain of approximately 236 million soles related to the revaluation of our previously held 50% stake in Pacificos Health Business under IFRS accounting. Moreover, there was a non-cash equity adjustment of around 257 million soles stemming from the revaluation of Bolivian assets, following the adoption of a more market-reflective exchange rate. Bolivia remains part of our regional footprint, where we continue to take a disciplined approach to managing our exposure. These results underscore the strength of our core operations and our long-term commitment to building a more agile, client-centric, and resilient financial platform. Looking ahead, Peru's economy is on track to grow around 3% in 2025, assuming global recession risk remain contained. The momentum from Q1 is expected to extend into Q2, supported by high terms of trade, recovering real wages, and resilient private consumption. Other tailwinds include significant profit distributions to employees, the delayed impact of monetary easing, and strong investment expectations. While global uncertainty and the 2026 elections could affect sentiment later this year, the outlook remains encouraging. Let me now take a step back and explore what the evolving global environment means for Peru and the potential challenges and opportunities ahead. There is no doubt that Peru is in a strong economic position, characterized by positive macroeconomic indicators, robust domestic demand, and solid performance in the first quarter. However, we are operating in a globally uncertain environment. marked by evolving trade tensions, global recession risks, and geopolitical factors. While the direct impact of current tariff measures on Peru remain limited, there is broader concern about how slower global growth might affect external demand, commodity prices, and overall market sentiment. Recent progress in trade negotiations between the U.S. and its partners is an encouraging sign that could help mitigate potential risks to global growth. However, we remain vigilant as uncertainty continues to weigh on the outlook. Beyond Peru, the implications of trade tensions are moving similarly across the region. In Chile, while the direct effects of tariffs appear limited, the indirect impacts such as the slowdown of key trading partners, declining copper prices, and deteriorating business confidence pose additional downside risks. Given that copper accounts for nearly half of Chile's export revenues, weakening external demand prospects are exerting downward pressure on growth expectations. In Colombia, the short decline in oil prices, if sustained, could put pressure on fiscal revenues and investment. Peru, Colombia, and Chile's economies may benefit over time from a realignment in global trade flows with shifting global sourcing patterns. For Credit Corp, these dynamics reinforce our ability to adopt across different economic cycles. As a result, we are focused not just on managing near-term volatility, but on positioning Credit Corp to benefit from long-term shifts in regional trade and production patterns. Our strong capital base, digital infrastructure, and client-centric model give us the tools to do both. Now, I'd like to turn the call over to Alejandro to go into further detail on our operating and financial results.