Credicorp Ltd.

morning everyone I would like to welcome you to the credit court limited second quarter 2025 conference call a slide presentation will accompany today's webcast which is available in the investor section of credit corps 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 speakerphone, please make sure your mute function is turned off to align your signal to reach our equipment. Now, it is my pleasure to turn the conference over to Credit Corp's C-I-R-O, Milagros Higuenas. You may begin.

Good morning. Thank you, and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Pérez 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 Cabrero, Head of Universal Banking, Piero Travesan, CFO of Insurance and Pensions, and Rocío Benavidez, 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, care, 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 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 show with remarks on the improved macro environment, a brief overview of our quarterly results, and an update on our strategy to build a more agile, balanced, and forward-looking platform, 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, Miguel. Good morning, everyone, and thank you for joining us. Let me begin with reflections on Peru's evolving macro environment and why Credit Corp is uniquely positioned to benefit from what's ahead. Momentum is building. Temps of trade remain historically high, driven by strong gold, silver, and copper prices. Also, Peru maintains a solid trade surplus. Inflation is below 2%, real wages are recovering, and formal employment is expanding. GDP is expected to grow 3.2% this year, with domestic demand growing around 4.5%. These tailwinds are creating a more constructive backdrop. The data tells one story. The renewal activity on the ground is even more promising. While large infrastructure projects have yet to ramp up, small and mid-sized businesses are investing again, modernizing, adding capacity, and meeting stronger demands. Investments are increasingly spread across regions, laying a healthier foundation for sustained growth. In this environment, PayCop is ready not just to participate in the recovery, but to lead it. We've built a resilient, diversified business anchored in digital infrastructure, deep-flying engagement, and scalable fee-generating platforms. This enables us to perform through difficult cycles, increasingly decoupling from the macro. With improving tailwinds, we're even better positioned to capture the upside efficiently and profitably. Our Q2 results reflect that momentum, stronger fundamentals, improving trade dynamics, and disciplined trade execution. We now expect ROE for the year to reach approximately 19%, including a 50 basis points boost from extraordinary income in the first half. with a longer-term outlook of around 19.5%. This underscores solid performance, structural resilience, and the accelerating impact of disruptive platforms like GABE. While our efficiency ratio reflects upfront investments to scale these capabilities, we remain focused on unlocking operating leverage through disciplined execution in digital, data, and risk. A healthier micro-level recovery further reinforces our long-term view and strengthens our confidence in delivering sustained shareholder value. Alejandro will detail the results and updated outlook, but before that, let me comment briefly on our situation with Sunat. As previously announced, Sunat has required us to pay approximately 1.6 billion soles in alleged and paid income tax and associate interest, which was done this week. This development does not alter our legal position or our confidence in a table resolution. We continue to believe that our case has strong legal and technical grounds. We are prepared to defend our position through the appropriate channels, whether at the tax court, where proceedings may take one to three years, or, if necessary, through the judiciary, which could extend the process by an additional five years. We will continue to operate with discipline and transparency, defending our rights while building a stronger, more agile credit corp. Let's now turn to our Q2 performance. We delivered another solid quarter, with strong contributions across core businesses and continued execution on strategic priorities. These results translated into an ROE of 20.7% supported by solid operating performance and disciplined risk management. Universal banking and insurance and pensions posted very strong results, while microfinance continued to recover. Fee-based and transactional income also grew, reinforcing our diversified platform. Our innovation portfolio contributed 6.2% of risk-adjusted revenues, keeping us on track toward our 10% target for 2026. Trade dynamics improved, and FX-neutral loan growth accelerated across all segments. Orientation timelines remain healthy, particularly in retail banking and microfinance, and we expect sustained engagement in the second half of the year. Risk-adjusted NIM hit a record 5.4%, aided by improved asset quality and our low-cost funding structure. On deposits, we increased our share of demand and saving accounts to 40.6%, reflecting our digital strategy and the trust we've built with clients. Asset quality trends remain favorable, thanks to tighter origination standards, refined risk pricing, and strengthened collections. Our efficiency ratio came in at 44.2% within our expected range, highlighting the scalability for our digital investments and our disciplined approach to cost control. Capital levels remain solid across all businesses. Our performance this quarter reflects more than improved macro conditions. It's the result of a deliberate multi-year strategy to build a more agile, balanced, and forward-looking platform. In recent years, we've modernized systems, built end-to-end digital capabilities, and reimagined client engagement across each of our businesses. These investments continue to pay off in performance, resilience, and adaptability. We're encouraged by a strong fraction of our disruptive innovation portfolio, a key pillar of our long-term strategies. Credit Corp. is no longer just a credit growth story. we're structurally shifting to a more balanced model where seed generation, client engagement, and scalable innovation are just as critical as lending. This transformation strengthens our resilience and positions us for more consistent, higher-quality growth. It's the foundation for the finance of the future, more inclusive, more digital, and more sustainable. IAPE continues to scale in both reach and relevance, now serving nearly 15 million monthly active users, equivalent to 75% of Peru's economically active population. Its monetization strategy is advancing, making it one of the top five contributors to fee income in the Peruvian financial system. Transaction volumes and engagement remains high, and we're expanding services and deepening client interaction. With platforms like Gapace and promising ones like Tempo, our soon-to-be digital bank, we're scaling high-impact services that grow revenues and deepen relationships, transaction by transaction, not just loan by loan. As part of our long-term vision, we're building the next-generation capabilities to future-proof our businesses and redefine value creation for clients, employees, and shareholders. This includes advancing digital onboarding, behavioral scoring, embedded finance, and ecosystem-based distribution. These are not just pilots. They are core building blocks for lasting differentiation. We're embedding AI and data management across our operations to generate value in tangible, scalable ways. Let me highlight three key areas. First, we're elevating the customer experience through hyper-personalization and advanced chatbots and voicebots making every interaction faster, smarter, and more intuitive. Second, we're enhancing operational efficiency by equipping our teams with AI co-pilots and productivity tools. These are already driving productivity gains of over 30% in code generation and simplifying daily workflows for commercial teams and analysts. Third, we're strengthening strategic decision making by harnessing data insights to identify new market opportunities, optimize our offerings, and increase earnings through solutions such as ALM optimization, smart customer prioritization, and strengthened risk management framework. By invading AI deeply into how we operate, we're not just innovating, we're building a future where both our clients and our people benefit from smarter, faster, and more effective solutions. This commitment positions us at the forefront of our new industry transformation. Our goal is to shape the future of finance in our region, not only through technology, but through a model that is inclusive, efficient, and highly engaging. Looking ahead, we remain focused on execution, innovation, and long-term value creation. I invite you to join us in New York on October 9th for our Investor Day, marking the 30th anniversary of our IPO. Together with our business leaders, I'll share how we're transforming finance to improve life and positioning our platform to lead in a changing region. We'll outline our financial services model of the future, anchored in innovation, inclusion, and data-driven client engagement, while scaling distribution and unlocking synergies across our ecosystem. We'll also show how AI advanced risk and data capabilities and discipline execution are future-proofing our business for sustainable growth. Having said that, let me pass the presentation to Alejandro.