Credicorp Ltd. (BAP) Q2 2022 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, everyone. I would like to welcome all of you to the Credicorp Limited Second Quarter 2022 Conference Call. A slide presentation will accompany today’s webcast, which is available in the Investor section of Credicorp’s website. Today’s conference call is being recorded. [Operator Instructions]

Now, it is my pleasure to turn the conference over to Creditcorp’s IRO, Milagros Cigüeñas, you may begin.

Milagros Cigüeñas

Thank you. And good morning, everyone. Speaking on today’s call will be Gianfranco Ferrari, our Chief Executive Officer, and Cesar Rios, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Reynaldo Llosa, Chief Risk Officer; Diego Cavero, Head of Universal Banking; and Cesar Rivera, 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 risk 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 change events or circumstances. Gianfranco Ferrari will start the call discussing our strategic initiatives followed by Cesar Rios who will comment on the macro environment in which we work, our financial performance and provide an update on our outlook for 2022.

Gianfranco, please go ahead.

Gianfranco Ferrari

Thank you Milagros. Good morning, everyone. Thank you for joining us today. Please turn to slide 3 of our earnings presentation. During the quarter, we continued to advance on the execution of strategic initiatives across our operations, increasing digital customers and advancing on financial inclusion. We delivered another set of robust financial results and closed the quarter with a solid balance sheet while maintaining healthy asset quality. Cesar will discuss this in more detail shortly. Importantly, we are well positioned to leverage additional opportunities, even as we navigate the current challenging geopolitical environment.

Before I turn to discussing the specific areas of our focus at Credicorp, I’d like to comment on the context in which we’re operating, particularly in Peru. Private investment is expected to decline this year and with a lack of meaningful public investment, our country is underperforming. Unfortunately, we Peruvians have been spending too much time discussing the political turmoil and not enough on addressing those matters that will truly make a difference to the wellbeing of our fellow citizens and the long-term health of our economy. The country requires its authorities, and especially the executive branch, to direct its efforts at promoting political and legal stability in order to assure private investment, as well as to efficiently execute the public budget with a goal of securing better public services for all, instead of enacting short-term measures with damaging inflationary consequences. The private sector is doing what it can, and we at Credicorp are committed to doing our part, but we certainly need the government to set up its execution capabilities across fundamental areas of our economy and safeguard our institutional framework to accelerate potential growth.