Credicorp Ltd.

Good morning, everyone. I would like to welcome you to the Credit Corp Limited first quarter 2026 conference call. A slide presentation will accompany today's webcast, which is available in the investors 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 then 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 to mute function. Use your mute function as turned off to allow your signal to reach our equipment. Now it is my pleasure to turn the conference over to Credit Courts IRO, Ms. Milagros Siguinas, 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 at the Q&A session will also be Francesca Rajo, Chief Innovation Officer, Cesar Rios, Chief Risk Officer, and Eduardo Montero, Head of Insurance and Pensions. 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 on 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 recent macro and political environments, the key levers of our decoupling strategy, and a brief overview of our quarterly results, followed by Alejandro Perez-Reyes, who will provide a more detailed analysis of key macroeconomic indicators, our financial performance, and our outlook for full year 2026. Gianfranco, please go ahead.

Thank you, Milagros. Good morning, everyone, and thank you for joining us today. Let me begin by thanking our shareholders for the strong support at our recent annual general meeting. The outcome of the board elections reflects a deliberate strategy-led refreshment process fully aligned with Credit Corp's long-term priorities. As announced, shareholders approved the appointment of three new directors and the re-election of six current members. The new directors bring complementary expertise in areas that are increasingly critical for us. particularly technology and AI, financial and regulatory oversight and strategic execution, as we continue advancing our transformation and strengthening our operating model. Importantly, our governance framework remains robust, with key safeguards firmly in place, including a fully independent audit committee and independent directors leading critical committees. This provides a strong foundation as we navigate different operating environments. At the global level, recent geopolitical tensions, particularly in the Middle East, have increased uncertainty, mainly through higher energy prices and their potential impact on inflation and the outlook for interest rates. Since our last conference call, Peru's economic activity has been affected by a series of temporary supply-side shocks, including higher oil prices, related to the conflict in the Middle East, and localized energy disruption and adverse weather conditions that led to contraction in primary sectors. That said, the positive momentum of the economy continues to remain solid. Several activities indicator, including private investment, continue posting double-digit growth, supported by resilient macroeconomic fundamentals and favorable export prices, with copper, currently trading at around $6.50 per pound. Against this backdrop, we're maintaining our GDP growth expectation for 2026 at around 3.5%, though our outlook has become more skewed to the downside, with recent macroeconomic indicators tracking closer to 3.2%. More importantly, domestic demand remains particularly dynamic, growing above 4%, which we view as the more relevant driver for loan growth going forward. As we await the official confirmation of results, the presidential runoff appears likely to feature candidates with markedly different economic visions, including one advocating for a significantly more interventionist role for the state. Should that candidate prevail, some initial market uncertainty could emerge. we believe the composition of the Senate is the more decisive factor and is trending toward a configuration that supports macroeconomic fundamentals and institutional continuity. In our view, this legislative balance will act as an effective counterweight, helping to preserve political stability. Peru's structural safeguards, including the Senate's death of authority and constitutional hurdles to significantly significant policy shifts are likely to act as effective constraints, helping preserve the independence of the central bank and its mandate, particularly regarding monetary financing to the treasury. Given this, we remain confident that Peru's economic model will continue to prove resilient, supported by solid institutional frameworks. Against this backdrop, we continue to closely monitor price dynamics and monetary conditions, Inflation has seen an uptick to 4% year over year, mainly driven by transport, energy, and food costs. As a result, monetary conditions are likely to remain somewhat tighter than previously anticipated. Across the region, the operating environment remains mixed, reflecting the initial impact of external pressures. In Colombia, activity remains relatively resilient, supported by consumption while policy uncertainty persists ahead of the presidential elections on May 31st. In Chile, growth has softened amid weaker early year activity and higher oil prices. At the same time, the new government offers improved prospects for private investment. In Bolivia, macroeconomic conditions remain challenging with performance exceeding expectations. Overall, While external conditions remain dynamic, the resilience of our core markets combined with the strengths and attractiveness of our offerings give us confidence that 2026 will remain a solid year. As we look ahead, we will further execute our decoupling strategy through four differentiated growth anchors. First, we're strengthening our leading position in the under-penetrated markets where we continue to see clear avenues of growth. We see significant room to deepen financial inclusion and expand our reach across client segments where structural gaps persist. This enables us to grow while maintaining disciplined risk standards. Second, we're scaling our integrated digital ecosystem. In 2026, we will leverage our platforms to accelerate client acquisition, deepen engagement, and increase cross-sells. while also improving efficiency and customer experience. A key component in our innovation portfolio is our neobank unit, which effective April 1st, brings together YAPE and EO in Peru, TEMPO in Chile, and YAPE in Bolivia under a common umbrella, led by Raimundo Morales. These platforms expand our reach and open new avenues for growth, particularly in payments and lending. More broadly, we're deepening our competitive mode by leveraging our scale, client base and ecosystem integration to drive sustained differentiation and progressively higher monetization. Third, we are unlocking synergies by leveraging shared capabilities across our ecosystem. We're placing greater emphasis on data, analytics and risk management capabilities that can be deployed across businesses. This also includes advancing our knowledge sharing agenda so that best practices can be applied across sub-series, improving decision-making, client targeting, and risk assessment. While we are still in the early stages, we are already seeing tangible benefits, and we believe this represents a meaningful opportunity going forward. Finally, delivering strong and resilient returns across economic cycles. This is underpinned by a prudent and holistic approach to risk and capital management across the organization. we continue to strengthen our capabilities across credit, liquidity and operational risk while maintaining a disciplined approach to capital allocation. This integrated framework is translating into more consistent performance and reinforces our resilience, enhancing our ability to navigate volatility, support sustainable growth and protect returns across different macro environments. Turning now to the first quarter results. We reported a very solid ROE of 21.1%, which exceeded expectations and reflects strong fundamentals across our core businesses. Operational performance was robust across core businesses. Additionally, we achieved 9% of risk-adjusted revenues from our innovation portfolio this quarter, advancing toward our 10% target by the end of this year. We've seen an acceleration of credit demand across our main lending segment. In the first quarter, loan growth was robust in DCP and Ibanco. We expect retail segments and microfinance to accelerate in the coming quarters. Risk-adjusted NIM strengthened sequentially, supported by improved asset quality and a resilient underlying NIM, as our loan portfolio expanded and funding mix improved. Deposit growth remained strong, reflecting system liquidity and sustained client confidence. while continued investments in service and digital capabilities deepened our client relationships and drove market share gains in low-cost funding, reaching 41.2% this quarter. Asset quality reflects proactive measures taken since 2023, including tighter origination standards, risk-free pricing, enhanced loan rescheduling, and greater investments in analytics alongside a favorable macro environment. Additionally, our strong solvency has enabled us to increase our dividend to 50 soles per share, while also supporting our plans for sustained long-term growth. Our efficiency ratio is at 45.8% 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. 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. Before I turn the call over to Alejandro, I would like to congratulate him on his appointment to lead our microfinance business and Ivanko. These transitions reflect the depth of talent we continue to build across Credit Corp and our disciplined approach to succession planning and leadership development. We're also very pleased that Ignacio Belaunde will assume the CFO role later this year, bringing strong financial and strategic experience to the position. In the meantime, we still have Alejandro with us for one more quarter of earning goals before this transition takes effect. With that, Alejandro, please go ahead.