November 15, 2002
Securities and Exchange Commission,
450 Fifth Street, N.W.,
Washington, D.C. 20549
Re: Credicorp Ltd. - Report on Form 6-K
Dear Sirs:
On behalf of Credicorp Ltd. (the "Company"), I hereby notify you of the
following Material Events on the Company's Report on Form 6-K (the "Form 6-K").
The signed copy has been numbered sequentially from the first through the last
page and the total number of pages contained in the Form 6-K has been set forth
on the first page. The enclosed is being furnished but shall not be deemed filed
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Please direct any questions or comments you may have regarding this filing
to the undersigned at 156 Calle Centenario, La Molina, Lima - 12 Peru.
Sincerely,
Ray Campos
1
SECURITIES AND EXCHAGE COMMISSION
Washington, DC 20549
________
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the November 14, 2002
Credicorp Ltd.
Clarendon House
Church Street
Hamilton HM 11 Bermuda
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F___x_ Form 40-F________
Indicate by check mark whether the registrant by furnishing the Information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes________ No_____x______
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
2
The attached Material Events (Hechos de Importancia) are being furnished to
the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K
under the Securities Exchange Act of 1934, as amended.
This Report contains a copy of the following:
(1) Notice of Material Event, submitted to CONASEV and the Bolsa de Valores de
Lima on November 4, 2002.
(2) Notice of Material Event, submitted to CONASEV and the Bolsa de Valores de
Lima on November 14, 2002.
(3) Notice of Material Event, submitted to CONASEV and the Bolsa de Valores de
Lima on November 14, 2002.
(4) Credicorp Ltd. and Subsidiaries, Consolidated Balance Sheet, as of
September 30, 2002 and Consolidated Statement of Income for the Nine months
ended September 30, 2002.
(5) Credicorp Ltd. Press Release reporting financial results for the period
ended September 2002, submitted to CONASEV, and the Bolsa de Valores de
Lima on November 14, 2002.
3
(1) Notice of Material Event regarding Credicorp Ltd., dated November 4, 2002
4
La Molina, November 4, 2002
Our Company, Credicorp Ltd., in accordance with article 28 of Decree Law
861, Capital Markets Law and the CONASEV resolution N o 307-95-EF/94.10, hereby
notify you of the following Material Event "Hecho de Importancia".
Mr. Jose Antonio Onrubia Romero has presented his resignation to the Board
of our institution.
The President presented the text of Mr. Onrubia's letter of resignation to
the Board in the session of Thursday, October 31, 2002. The board members
expressed their sorrow for this decision and recognized the valuable services
and contribution that Mr. Onrubia has given to the Board and this prestigious
institution since its creation.
Likewise we inform that in the same session Mr. Luis Enrique Yarur Rey was
designated as the new Director of Credicorp, to cover the vacancy created by the
resignation of Mr. Onrubia.
As soon as the Act of the session in which Mr. Yarur is designated to the
Board is approved and signed, a copy we shall forward due notification of such
act.
Sincerely,
Benedicto Ciguenas
Credicorp Ltd.
5
(2) Notice of Material Event regarding Credicorp Ltd. dated November 14, 2002
6
Lima - Peru
November 14, 2002
Dear Sirs:
Credicorp Ltd.'s main operating subsidiary, Banco de Credito del Peru in
accordance with Peruvian Capital Markets Law, hereby notifies you of the
following material event. Our board of Directors has announced that it has
reached an agreement to purchase 99.94% of the equity shares of Banco Santander
Central Hispano, Peru, a subsidiary of Banco Santander Central Hispano of Spain.
This transaction includes 100% of the common voting shares of the mutual fund
entity, Sociedad de Fondos Mutuos Santander Central Hispano S.A: (Peru). Both of
these entities will be absorbed by merger into Banco de Credito del Peru's
operations.
The transaction will be carried out in accordance with the Peruvian Capital
Markets Law via a Public Tender Offer whereby Banco de Credito del Peru will
seek to acquire at least 99.9% of the outstanding shares of Santander Central
Hispano, Peru, on the Lima stock exchange.
Sincerely,
Credicorp Ltd.
7
(3) Notice of Material Event regarding Credicorp Ltd., dated November 14, 2002
8
November 14, 2002
Comision Nacional Supervisora
De Empresas y Valores
Lima
Ref.; "Material Event"
Dear Sirs:
In conformity with the articles10 and 28 of Capital Market Law and CONASEV
Resolution No. 307-95-EF/94.10, we hereby notify you of the following Material
Event, "Hecho de Importancia".
Today, the Central Management of our company approved the consolidated
financial statements for Credicorp and Subsidiaries as of September 30, 2002.
Sincerely,
Benedicto Ciguenas
Credicorp Ltd.
9
(4) Financial Statements
CREDICORP LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
(Amounts expressed in thousands of U.S. Dollars)
--------------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
--------------------------------------------------------------------------------------------------------------------------------
ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS CURRENT LIABILITIES
--------------------------------------------------------------------------------------------------------------------------------
Cash and due from banks 2,003,455 1,847,266 Deposits and obligations 5,427,203 5,433,328
--------------------------------------------------------------------------------------------------------------------------------
Interbank Funds 17,069 50,186 Interbank Funds 12,806 25,202
--------------------------------------------------------------------------------------------------------------------------------
Marketable securities, net Deposits from other financial and
518,108 548,138 international institutions 207,096 319,163
--------------------------------------------------------------------------------------------------------------------------------
Loans net 3,558,785 3,720,046 Due to banks and correspondents 161,022 103,169
--------------------------------------------------------------------------------------------------------------------------------
Accounts receivables (net) Securities, notes and obligations
0 0 outstanding 0 0
--------------------------------------------------------------------------------------------------------------------------------
Other accounts receivables (net) 0 0 Accounts payables 0 0
--------------------------------------------------------------------------------------------------------------------------------
Other Assets 0 0 Other accounts payables 0 0
--------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 6,097,417 6,165,636 Provisions 0 0
--------------------------------------------------------------------------------------------------------------------------------
Other liabilities 301,765 316,910
--------------------------------------------------------------------------------------------------------------------------------
Loan portfolio (net) 0 0 TOTAL CURRENT LIABILITIES 6,109,892 6,197,772
--------------------------------------------------------------------------------------------------------------------------------
Accounts receivables (net) 0 0
--------------------------------------------------------------------------------------------------------------------------------
Other accounts receivables (net) 0 0 Debt and financial obligations 131,556 213,081
--------------------------------------------------------------------------------------------------------------------------------
Disposable assets, foreclosed assets and Securities, notes and obligations
out of use assets 0 0 outstanding 0 0
--------------------------------------------------------------------------------------------------------------------------------
Investment securities available for sale 618,286 587,349 Other accounts payables 30,564 23,801
--------------------------------------------------------------------------------------------------------------------------------
Real state investments (net) 0 0 Provisions 263,703 238,159
--------------------------------------------------------------------------------------------------------------------------------
Property, plant and equipment, net 244,050 258,870 Income tax and deferred liabilities 0 0
--------------------------------------------------------------------------------------------------------------------------------
Intangible assets (net) 0 0 Other liabilities 0 0
--------------------------------------------------------------------------------------------------------------------------------
Income tax and deferred assets 0 0 TOTAL NON CURRENT LIABILITIES 425,823 475,041
--------------------------------------------------------------------------------------------------------------------------------
Other Assets 438,762 569,986 TOTAL LIABILITIES 6,535,715 6,672,813
--------------------------------------------------------------------------------------------------------------------------------
Minority Interest 64,311 112,255
--------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------------------------------------------------------
Paid in Capital 398,735 397,307
--------------------------------------------------------------------------------------------------------------------------------
Additional Capital 140,500 139,020
--------------------------------------------------------------------------------------------------------------------------------
Reserves 69,527 69,527
--------------------------------------------------------------------------------------------------------------------------------
Other Reserves 34,577 34,577
--------------------------------------------------------------------------------------------------------------------------------
Retained earnings 155,150 156,342
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
TOTAL NON CURRENT ASSETS 1,301,098 1,416,205 TOTAL SHAREHOLDERS' EQUITY 798,489 796,773
--------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS TOTAL LIABILITIES AND NET
7,398,515 7,581,841 SHAREHOLDERS'S EQUITY 7,398,515 7,581,841
-=============================================================---===============================================================
10
CREDICORP LTD. AND SUBSIDIARIES
INCOME STATEMENTS
For the periods ended September 30, 2002 and 2001
(In Thousands of U.S. Dollars)
-------------------------------------------------------------------------------------------------------------------
For the 3 month For the 3 month For the 9 monthFor the 9 month
period July 1st period July 1st period Jan. period Jan.
to September to September 1st to 1st to
30, 2002 30, 2001 September 30, September 30,
2002 2001
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
INCOME 119,630 173,142 390,560 539,711
-------------------------------------------------------------------------------------------------------------------
Interest Income 119,630 173,142 390,560 539,711
-------------------------------------------------------------------------------------------------------------------
Interest on Deposits with banks 10,420 17,849 26,286 54,989
-------------------------------------------------------------------------------------------------------------------
Interest and commissions from Interbank funds 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Interest on trading securities 9,915 20,026 43,444 62,246
-------------------------------------------------------------------------------------------------------------------
Interest on Loans 98,991 134,915 319,027 420,469
-------------------------------------------------------------------------------------------------------------------
Income on notes receivables 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Interest and dividends on investment 304 352 1,803 2,007
-------------------------------------------------------------------------------------------------------------------
Fees and other income on financial operations 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Others 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Operating Income 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Other operating revenue 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
EXPENSES (42,139) (78,775) (134,483) (257,981)
-------------------------------------------------------------------------------------------------------------------
Interest Expense (42,139) (78,775) (134,483) (257,981)
-------------------------------------------------------------------------------------------------------------------
Interest and fees on obligations with the public 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Interest and fees on interbank funds 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Interest on deposits from other financial and
international institutions (28,090) (55,709) (89,392) (178,861)
-------------------------------------------------------------------------------------------------------------------
Interest on short term debt to banks and
correspondets (5,464) (13,222) (20,149) (48,790)
-------------------------------------------------------------------------------------------------------------------
Interest on long term debt to banks and
correspondents 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Interest and fees on other financial obligations 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Other interest expense (8,585) (9,844) (24,942) (30,330)
-------------------------------------------------------------------------------------------------------------------
Operating costs 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
GROSS FINANCIAL MARGIN 77,491 94,367 256,077 281,730
-------------------------------------------------------------------------------------------------------------------
Provision for lower market value of investments 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Provision for possible loan losses, net (32,236) (29,956) (87,911) (93,963)
-------------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME 45,255 64,411 168,166 187,767
-------------------------------------------------------------------------------------------------------------------
Other Income 89,649 89,456 266,656 249,551
-------------------------------------------------------------------------------------------------------------------
Other expense (25,463) (24,444) (73,395) (75,016)
-------------------------------------------------------------------------------------------------------------------
OPERATING MARGIN 109,441 129,423 361,427 362,302
-------------------------------------------------------------------------------------------------------------------
Administrative expenses (94,881) (109,032) (295,877) (311,525)
-------------------------------------------------------------------------------------------------------------------
Cost of sales 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
OPERATING RESULTS 14,560 20,391 65,550 50,777
-------------------------------------------------------------------------------------------------------------------
Financial income 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Financial expense 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Other income and expense (900) (550) (2,866) (3,410)
-------------------------------------------------------------------------------------------------------------------
Result from exposure to inflation 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Income before income taxes and extraordinary items 13,660 19,841 62,684 47,367
-------------------------------------------------------------------------------------------------------------------
Participations 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Income taxes (8,809) (5,515) (26,641) (12,952)
-------------------------------------------------------------------------------------------------------------------
Income before extraordinary items 4,851 14,326 36,043 34,415
-------------------------------------------------------------------------------------------------------------------
Extraordinary income 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Extraordinary expenses 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Income before minority interests 4,851 14,326 36,043 34,415
-------------------------------------------------------------------------------------------------------------------
Minority interest (1,771) (3,199) (7,177) (6,412)
-------------------------------------------------------------------------------------------------------------------
Net Income 3,080 11,127 28,866 28,003
-------------------------------------------------------------------------------------------------------------------
Prefered dividends 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
NET ATTRIBUTABLE INCOME 3,080 11,127 28,866 28,003
-------------------------------------------------------------------------------------------------------------------
Earnings per share 0.038622 0.138877 0.361970 0.349509
-------------------------------------------------------------------------------------------------------------------
Diluted earnings per share 0.038622 0.138877 0.361970 0.349509
-------------------------------------------------------------------------------------------------------------------
11
CREDICORP LTD. AND SUBSIDIARIES
Changes in Shareholder's Equity
For the periods ended September 30 of 2002 and 2001
(In Thousands of U.S. Dollars)
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Common Capital Legal Special Retained Total
Shares Surplus Reserve Reserve Earnings
-----------------------------------------------------------------------------------------------------------------------------
Balances at January 1, 2001 400,605 145,065 69,527 28,659 138,873 782,728
-----------------------------------------------------------------------------------------------------------------------------
Changes in accounting practices and correction of material
1. errors 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
2. Distribution and appropriation of profits 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
3. Dividends and participations 0 0 0 0 (8,017) (8,017)
-----------------------------------------------------------------------------------------------------------------------------
4. New capital additions 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
5. Changes in premiums and donations 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
6. Increase or decrease due to mergers or spinoffs 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
7. Asset revaluations 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
8. Capitalization of equity accounts 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
9. Capital reductions 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
10. Profit (loss) net of the current period 0 0 0 0 28,003 28,003
-----------------------------------------------------------------------------------------------------------------------------
11. Other increase (decrease) of equity accounts 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
Balances at September 30, 2001 400,605 145,065 69,527 28,659 158,859 802,715
-----------------------------------------------------------------------------------------------------------------------------
Balances at January 1, 2002 397,307 139,020 69,527 34,577 156,342 796,773
-----------------------------------------------------------------------------------------------------------------------------
Changes in accounting practices and correction of material
1. errors 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
2. Distribution and appropriation of profits 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
3. Dividends and participations 0 0 0 0 (15,987) (15,987)
-----------------------------------------------------------------------------------------------------------------------------
4. New capital additions 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
5. Changes in premiums and donations 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
6. Increase or decrease due to mergers or spinoffs 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
7. Asset revaluations 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
8. Capitalization of equity accounts 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
9. Capital reductions 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
10. Profit (loss) net of the current period 0 0 0 0 28,866 28,866
-----------------------------------------------------------------------------------------------------------------------------
11. Other increase (decrease) of equity accounts 1,428 1,480 0 0 (14,071) (11,163)
-----------------------------------------------------------------------------------------------------------------------------
Balances at September 30, 2002 398,735 140,500 69,527 34,577 155,150 798,489
-----------------------------------------------------------------------------------------------------------------------------
12
CREDICORP LTD. AND SUBSIDIARIES
Statement of Cash Flows
For the periods ended September 30 of 2002 and 2001
(In Thousands of U.S. Dollars)
-------------------------------------------------------------------------------------------
For the 6 month For the 6 month
period Jan. period Jan.
1st to 1st to
September 30, September 30,
2002 2001
-------------------------------------------------------------------------------------------
RECONCILIATION OF NET RESULTS WITH CASH AND CASH EQUIVALENTS PROVIDED BY OPERATIONS
-------------------------------------------------------------------------------------------
NET INCOME (LOSS) FOR THE PERIOD 28,866 28,003
-------------------------------------------------------------------------------------------
ADJUSTMENTS TO NET RESULTS OF THE PERIOD 0 0
-------------------------------------------------------------------------------------------
Depreciation and amortization 32,828 34,335
-------------------------------------------------------------------------------------------
Loan loss provision 87,911 93,963
-------------------------------------------------------------------------------------------
Provision for securities and seized assets 20,333 21,285
-------------------------------------------------------------------------------------------
Other provisions 0 0
-------------------------------------------------------------------------------------------
Profit (loss) from the sale of securities (6,544) (1,191)
-------------------------------------------------------------------------------------------
Profit (loss) from the sale of properties and equipment 0 0
-------------------------------------------------------------------------------------------
Others 0 0
-------------------------------------------------------------------------------------------
DEBITS AND CREDITS FROM NET CHANGES IN ASSETS AND LIABILITIES
-------------------------------------------------------------------------------------------
Increase (decrease) in receivables and other accounts
receivables (2,049) (2,126)
-------------------------------------------------------------------------------------------
Increase (decrease) in notes payables and other accounts
payables 1,171 35,594
-------------------------------------------------------------------------------------------
Increase (decrease) in other assets 120,302 (20,756)
-------------------------------------------------------------------------------------------
Increase (decrease) in other liabilities (47,944) 7,598
-------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS PROVIDED BY
OPERATIONS 234,874 196,705
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
-------------------------------------------------------------------------------------------
Increase from sale of properties and equipment 0 0
-------------------------------------------------------------------------------------------
Increase from sale of other non financial assets 30,638 0
-------------------------------------------------------------------------------------------
Purchase of properties and equipment (8,295) (12,693)
-------------------------------------------------------------------------------------------
Purchase of other non financial assets (53,235) (214,229)
-------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS PROVIDED BY
INVESTING ACTIVITIES (30,892) (226,922)
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
-------------------------------------------------------------------------------------------
Increase (decrease) net of deposits and obligations (118,192) 365,262
-------------------------------------------------------------------------------------------
Increase (decrease) net of obligations to banks and
correspondents (36,068) 20,358
-------------------------------------------------------------------------------------------
Increase (decrease) net of other financial liabilities 0 0
-------------------------------------------------------------------------------------------
Increase (decrease) capital and capital surplus 0 0
-------------------------------------------------------------------------------------------
(Increase) decrease net of the loan portfolio 73,350 60,911
-------------------------------------------------------------------------------------------
(Increase) decrease net of investments 0 0
-------------------------------------------------------------------------------------------
Dividends received (paid) 0 0
-------------------------------------------------------------------------------------------
(Increase) decrease of other financial assets 0 0
-------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS PROVIDED BY
FINANCING ACTIVITIES (80,910) 446,531
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 123,072 416,314
-------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 1,897,452 1,752,577
-------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 2,020,524 2,168,891
-------------------------------------------------------------------------------------------
13
(5)
FOR IMMEDIATE RELEASE:
For additional information please contact:
Jose Hung Alfredo Montero
Investor Relations General Manager
Banco de Credito Banco de Credito, Miamigency
Phone: (511) 349-0590 Phone: (305) 448-0971
E-mail: jhung@bcp.com.pe Fax: (305) 448-0981
Web site: http://www.credicorpnet.com E-mail: amontero@bcpmiami.com
CREDICORP LTD. ANNOUNCES FINANCIAL RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2002
(Lima, Peru, November 14, 2002) - Credicorp Ltd. ("Credicorp") (NYSE:BAP;
LSE:BAPC1) today announced its financial results for the quarter ended September
30, 2002.
For the nine month period ended September 30, 2002, Credicorp reported a
consolidated net income of US$28.9 million, slightly over US$28.0 million
obtained in the same period of year 2001, resulting in US$0.36 and US$0.35 per
share, respectively. In the third quarter 2002, Credicorp had net income of
US$3.1 million, or US$0.04 per share, compared to US$11.1 million in the same
period of year 2001, or US$0.14 per share. Results in the first nine months of
2002 were slightly over the same period in 2001, being noteworthy the reduced
net interest income and higher income taxes in the current year period, which
were offset by higher non-financial income, lower loan loss provisions and
decreased operating expenses. The third quarter 2002 net income declined
compared to results in the same quarter of 2001 mainly because of lower net
interest income, partly offset by higher non-financial income and lower
operating expenses.
I. CREDICORP LTD. AND SUBSIDIARIES
CREDICORP LTD. AND SUBSIDIARIES
SUMMARY OF RESULTS
(In U.S.$ millions, except net income per share)
----------------------------------------------------------------------------------
Three months ended Nine months ended
----------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.01 30.09.02
----------------------------------------------------------------------------------
Net interest income 94.4 90.4 77.5 281.7 256.1
Provisions for possible loan
losses, net 30.0 30.3 32.2 94.0 87.9
Other income 81.2 89.5 89.6 241.1 266.7
Claims on insurance activities 24.4 26.9 25.5 75.0 73.4
Other expenses 102.6 100.5 94.9 305.0 295.9
Translation result (0.6) (0.1) (0.9) (3.4) (2.9)
Income before income tax and
------------------------------
minority interest 17.9 22.2 13.7 45.5 62.7
----------------------------------------------------------------------------------
Income Tax (3.6) (9.1) (8.8) (11.1) (26.6)
Minority Interest (3.2) (2.1) (1.8) (6.4) (7.2)
Net Income 11.1 11.0 3.1 28.0 28.9
----------------------------------------------------------------------------------
Net Income per share (1) 0.14 0.14 0.04 0.35 0.36
----------------------------------------------------------------------------------
(1) Based on 79.8 million net outstanding shares at 2Q02 and 3Q02, 80.2 million
in other periods. The total number of shares is 94.4 million, however, as
14.6 million are held by affiliates as treasury shares, the net
consolidated outstanding shares are 79.8 million.
14
I.1 PERUVIAN ECONOMIC SITUATION
GDP growth, that was 3.8% in both July and August 2002, exceeded
expectations. After a 7.5% increase in April. With growth of 3.0% achieved in
the first quarter 2002, and 5.3% in the second quarter, cumulative growth
through August 2002 reached 4.1%, compared to a 1.2% decline in the same period
of 2001. GDP figures confirm a recovery, with continuous increases since August
2001, but which is perceived as weak and uneven. Growth of last July and August
is partly due to increased tax collections, that benefitted from non-recurrent
administrative changes. Nevertheless, the recovery of the construction sector,
of non-primary manufacturing (which include cement production) and of
consumption is noteworthy. In the following months GDP will slowdown after
passing the Antamina effect and because internal demand continues depressed,
affected by the low level of investment.
Cumulative GDP growth through August 2002 was 4.1%, with increases in all
sectors except Fishing (-3.2%), with the highest growth rates seen in the Mining
(16.5%), Construction (9.3%), Electricity and Water (5.4%) and Agriculture
(5.0%). Manufacturing grows 2.6% and, since the second quarter 2002, due to
growth in non-primary production, where increased textiles, food production and
non-metallic minerals (cement) should be noted. Compared to the preceding year,
through August 2001 GDP declined -1.2%, decreasing mostly Construction (-10.5%),
Fishing (-5.8%), Manufacturing (-2.0%) and Agriculture (-1.6%).
Continuing a positive trend that began in the last quarter of last year,
aggregate demand data, available only through August of 2002, show that Internal
Demand increased 3.2% in that period, after increasing 1.2% and 4.0% in the
first and second quarters of 2002, repectively. Growth in the second quarter
2002, is mostly due to increased private and public consumption, 4.2% and 4.6%,
respectively. Nevertheless, total investment declined -1.9% in the second
quarter, consecutively dropping since the third quarter of 2000.
In the third quarter of 2002, the consumer price index in Peru increased
0.6%, similar to inflation in the preceding quarter which changed deflations in
the four preceding quarters. Consumer price inflation in the current period is
mainly due to higher fuel prices, public services and housing. Cumulative
inflation through September 2002 was 1.2%, and remains below the 2.5% target
established for total 2002 by the Central Bank.
The average bank market Nuevos Soles exchange rate in Peru was S/.3.644 at
September 30, 2002, devaluing 3.8% in the quarter, which continued increases
since last May, for a total of 5.8% devaluation since year-end 2001.
International reserves of the Central Bank continued their positive trend
during the third quarter of 2002, growing from US$9,126 million at June 30, 2002
to US$9,857 million at September 30.
During the third quarter 2002 both deposit and loan volumes had a slight
positive trend. Deposits in the fifteen commercial banks in the system reached
S/.49.4 billion (US$13.6 billion), according to the Asociacion de Bancos del
Peru (ASBANC) as of September 30, 2002, a 6.2% increase in nominal terms
compared to June 30, 2002, partly due to the devaluation in the period.
During the quarter ended September 30, 2002, total loans in the banking
system increased 1.9%, in nominal terms, to S/.37.7 billion (US$10.4 billion),
and grow 4.7% with respect to the year-ago loan balances. During the quarter,
local currency loans (18.9% of total loans) grew 1.6%, while foreign currency
loans decreased 1.7% (in U.S. Dollar terms).
As of September 30, 2002, the Peruvian bank's average past due ratio was
8.2%, similar to the rate in June 2002, but is lower than the 10.1% past due
ratio at September 2001. It should be noted that these ratios are below actual
ones due to the benefits of government sponsored programs that exchanged
Treasury Bonds for past due loans. BCP decided not to take advantage of these
programs.
Commercial banks' past due loans increased 2.7% during the current quarter
to S/.3.1 billion (US$851 million), but are lower by 14.6% compared to bad loans
at September 2001 (in nominal terms). At September 30, 2002, loan loss
provisions were S/.3.9 billion (US$1.1 billion), 2.0% higher during this
quarter. The system-wide past due loan coverage ratio remained at approximately
124.2% since last June.
15
During the third quarter 2002 commercial banks' local currency interest
rates increased, changing their negative trend due to the exchange rate
volatility and the Central Bank's policy change in favor of monetary
contraction. Local currency average loan rates (TAMN) were 20.4% in third
quarter 2002, increasing from 19.9% in the preceding second quarter of 2002,
while deposits rates (TIPMN) grew to 3.4% from 3.0%, respectively. The average
local currency interbank rates increased from 2.6% in second quarter of 2002 to
5.6% in the current quarter. Foreign currency loan rates (TAMEX) were 10.0% in
third quarter 2002, lower than 10.1% in the preceding period, while deposit
rates (TIPMEX) decreased to 1.5% from 1.6% in the second quarter of 2002.
I.2 INTEREST INCOME AND OTHER INCOME
Net interest income in the third quarter of 2002 was US$77.5 million, 17.9%
less than that earned in the same period of 2001, mostly due to lower loan
volumes and decreased interest rates on loans and on fixed income securities.
Loans declined mostly due to the sale of Banco Capirtal and to lower volume in
the Bolivian subsidiary. The net interest margin (net interest income over
average interest earning assets), on an annualized basis, was 5.37% during the
third quarter of 2002, lower than 5.97% in the year-ago quarter, and compared to
6.30% in the second quarter 2002. Net interest margin decreased with respect to
the preceding quarter principally due to lower lending rates in local and
foreign currency, noting an overall excess of liquid funds, and lower returns on
fixed income securities specially in Banco Tequendama. The volume in interest
earning assets, as an average between quarterly ending balances, reached
US$5,772 million in the period, decreasing 8.7% compared to US$6,325 million in
the third quarter of 2001.
Non-interest income was US$89.6 million in the third quarter of 2002,
increasing 10.5% compared to US$81.2 million in the same period of 2001,
principally due to increased fee income and from insurance premiums. Income from
banking fees in the third quarter of 2002 increased 11.8% compared to revenue in
the year-ago period, reaching US$43.8 million. Losses on sale of securities grew
to US$5.7 million in the current quarter mostly from lower value of the fixed
income portfolio in ASHC and Banco Tequendama, due to Colombian Peso
devaluation. Non-interest income components were as follows:
3Q01 2Q02 3Q02 3Q02 vs. 3Q02 vs.
(In US$Mn) 2Q02 3Q01
-------------------------------------------------------------------------------------
Commissions for banking services(1) 39.2 41.2 43.8 6.5% 11.8%
Net premiums 28.0 31.4 31.3 -0.3% 11.7%
Gains from sale of securities -2.9 -2.3 -5.7 N/A N/A
Gains from foreign exchange 6.2 5.8 5.5 -3.8% -10.9%
Other non-interest income 10.6 13.5 14.6 8.4% 38.2%
Total Non-Interest Income 81.1 89.5 89.6 0.2% 10.5%
-------------------------------------------------------------------------------------
(1) Credicorp's results show reclassifications by BCP, made on prior periods
for comparison purposes, in the income from banking fees and general
expenses concepts, of expenses incurred to provide certain services and
recovered from clients through fees. Starting in 2Q02, financial statements
show fee income net of these expenses, which were previously reported as
part of general expenses.
16
I.3 OTHER NON-INTEREST EXPENSES
Other non-interest expenses, which include provisions for assets received
in lieu of loan repayment and employee profit sharing expense, amounted to
US$94.9 million in third quarter 2002, 7.6% lower than in the same period of the
previous year. Credicorp's other expense components had the following
variations:
3Q01 2Q02 3Q02 3Q02 vs. 3Q02 vs.
(% change and US$Mn) 2Q02 3Q01
-----------------------------------------------------------------------------------
Salaries and employee benefits 44.1 44.8 43.6 -2.6% -1.2%
General, administrative, and
taxes(1) 33.2 33.7 33.0 -2.1% -0.6%
Depreciation and amortization 11.4 10.9 10.7 -1.9% -6.1%
Other 13.9 11.1 7.6 -31.9% -45.6%
Total Other Expenses 102.6 100.5 94.9 -5.6% -7.6%
-----------------------------------------------------------------------------------
(1) See note in the preceding table.
The efficiency ratio (adjusted operating expenses, determined by netting
provisions for assets received in lieu of loan repayment, employee profit
sharing expenses and non-recurrent expenses) as a percentage of total income,
without extraordinary concepts, improved to 49.1% in the third quarter of 2002
having been 53.9% in the same period last year. As explained in Section II.4,
BCP registered US$5.2 million of non-recurrent expenses in this quarter.
Adjusted operating expenses as a percentage of average total assets was 4.5% the
current period, lower than 4.7% in the year-ago quarter.
I.4 ASSETS AND LIABILITIES
Credicorp's totals assets were US$7.4 billion at September 30, 2002, 1.5%
over the balance at the start of the quarter, but declines 7.9% compared to the
balance at September 2001. The loan portfolio as of September 30, 2002 totaled
US$3.9 billion, decreasing 4.4% during the present quarter, and are 10.3% lower
than the balance of September 2001. Deposits and other obligations reached
US$5.6 billion at September 30, 2002, a 2.2% increase with respect to June 2002,
but decrease 6.6% in the year since September 2001. Due to banks and
correspondents, which closed at US$305.4 million, remained almost unchanged
during the present quarter, but are 36.4% lower than the US$479.7 million
balance at September 2001.
Loan quality indicators are shown in the following table:
(In US$Mn) 3Q01 2Q02 3Q02
----------------------------------------------------
Total loans 4,313.5 4,045.4 3,869.6
Past due loans 384.3 316.3 310.4
Loan loss reserves 355.8 314.1 310.8
Past due / Total loans 8.9% 7.8% 8.0%
Reserves / Past due 92.6% 99.3% 100.1%
----------------------------------------------------
The balance of past due loans decreased from US$316.3 million in the
preceding quarter to US$310.4 million at the end of the current quarter, after
charge-offs amounting to US$27.1 million.
17
I.5 SUBSIDIARIES
Credicorp's principal subsidiaries contributed to consolidated net income as
follows:
(US$Mn) 3Q01 2Q02 3Q02 9m01 9m02
----------------------------------------------------------------------------------
Banco de Credito US$15.6 US$13.3 US$10.0 US$34.0 US$37.3
Atlantic -1.4 0.1 0.1 4.1 1.5
PPS 0.5 1.4 2.7 -0.8 6.3
Banco Tequendama -0.1 -0.5 -3.1 -1.7 -3.5
Credicorp and others* -3.5 -3.3 -6.6 -7.6 -12.7
Consolidated Net Income US$11.1 US$11.0 US$ 3.1 US$28.0 US$28.8
----------------------------------------------------------------------------------
* Includes Inversiones Credito and Grupo Capital (for contributions through
Nov. 2001).
In the preceding table, the Credicorp and others concept contribute a loss
of US$6.6 million in the current quarter, which is mostly due to exchange losses
of US$2.8 million caused by the devaluation of the Colombian Peso and the
Venezuelan Bolivar, and of US$3.8 million of provisions on impaired assets
transferred from Banco Tequendama. Compared to the third quarter of 2001,
Credicorp made US$0.2 million in provisions related to similar substandard loans
and foreclosed assets transferred from Banco Tequendama, totalling US$2.4
million through September 2001.
In the present quarter, BCP contributed US$10.0 million to Credicorp's net
income, while its results according to Peruvian accounting principles reported
in Section II, amounted to US$16.8 million, with the difference mainly due to
lower translation gains registered on Credicorp's records (US$1.9 million)
compared to inflation adjustment gains (US$7.5 million), which includes exchange
gains on foreign currency asset positions in BCP's accounting based on domestic
currency.
In the case of PPS's contribution (US$2.7 million) to Credicorp's net
income in this quarter, the difference with local books figures (US$3.4 million)
is mostly explained by the deduction of minority interests (US$0.8 million) in
PPS.
Banco Tequendama contributed with a net loss of US$3.1 million to the
consolidated net income in the third quarter of 2002, mostly due to value
impairment of investments (US$3.0 million) and translation losses from
devaluation of the Colombian Peso (US$1.5 million), which are in addition to
translation losses registered by Credicorp as mentioned above.
Below are brief comments on some of the subsidiaries not discussed in the
following sections of this report:
Banco de Credito de Bolivia ("BCB"), Bolivia
Credicorp holds a 99.7% interest in BCB, directly and through various
subsidiaries, and it is consolidated within BCP's financial statements. The
Bolivian economy, after an stagnant year 2001, is expected to grow 2% in 2002,
lower than previously expected due to the government's fiscal difficulties and
lower foreign investments. President Sanchez de Lozada, that took office in
August, faces problems in financing the budget deficit that amounts to 8% of
GDP, which is requiring a set of tax measures that will be presented in
November. The general price level grew only 1.1% through September (0.02% as of
June 2002), reflecting the weakness in demand, and continues to be below
devaluation which was 7.6% in the same period.
Loan volume in the banking system continued to decline, after falling by
10.8% in 2000 and 16.4% in 2001, a drop of 10.3% is noted in the first nine
months of 2002, to finish at US$2,734 million. Loan quality continued to
deteriorate, from a past due ratio of 16.1% in December 2001, to 21.6% in
September 2002. Total deposits in the system amounted to US$2,578 million at
September 2002, lower by 18.4% compared to December 2001.
18
BCB's market share in deposits decreased from 13.5% at June 2002 to 12.5%
at the end of September 2002, remaining as the fifth bank of twelve banks in the
system. In terms of loans, BCB ranked as the fourth in the system with 11.9%
market share, decreasing from 12.4% it had last June. The decrease in market
share is explained by the priority given to assuring profitability of the
products, in an environment of excess liquidity and increased credit risk.
As of September 30, 2002, BCB had total loans of US$322.4 million which
compares to the US$355.4 million at June 2002, and US$441.2 million at September
of last year. At the end of the third quarter 2002, BCB's past due loans reached
US$81.4 million, or 25.3% of total loans, higher than 23.8% at June 2002 and
14.2% at December 2001. Coverage of past due loans with loan loss provisions
decreases from 57.6% as of December 2001 to 47.9% in September 2002.
In the first nine months of 2002, loan provisions charged against results
amounted to US$12.4 million, remaining similar to the amount charged in the same
period in 2001. Through September 2002, an additional US$15.0 million in loan
provisions have been incurred at the BCP level to cover BCB's impaired assets.
Net income for the nine months was only US$140 thousand, compared to US$1.3
million in the first nine months of last year, decreasing principally due to
lower net interest income, partially offset by higher gains on sale of
securities.
Banco Tequendama, Colombia
The official GDP growth estimate for Colombia in 2002 was raised from 1.2%
to 1.6%, given the relatively high growth of 2.2% in the second quarter.
Economic activity continues depressed after the slow-down in 2001, when GDP grew
1.6%, compared to 2.8% in 2000. Growth in the second quarter was partly due to
the expansion of the construction (8.8%) and agriculture (5.3%) sectors.
Following the 6.1% devaluation in the second quarter 2002, the exchange
rate fell an additional 18.8% in the third, ending at Co$2,851 per US$1.
Inflation decreases from 2.0% in the second quarter 2002 to 0.5% in the current
period, and is below 0.7% in the year-ago quarter. Inflation is expected at 6%
for total 2002.
During the quarter, interest rates continued a slow decline, with the DTF
rate decreasing from 8.21% last June to 7.63% at the end of September 2002,
following successive lower Central Bank intervention rates with the objective of
helping the recovery of economic activity. Nevertheless, due to devaluation,
interest rates on domestic government debt (TES) increased, reversing their
downward trend, and lowered their market value.
Banking system statistics show that loans decrease from US$15.7 billion at
December 2001, to US$13.8 billion at the close of August 2002 (in CO$ nominal
terms), with the past-due ratio increasing to 13.9%, from 10.3% at year-end
2001. Total deposits in the banking entities were US$17.9 billion at the end of
August 2002, decreasing 14.0% since December 2001.
As of September 30, 2002, Banco Tequendama's loans were US$210.4 million,
decreasing 12.0% compared to US$239.0 million last June 2002, and also from
US$242.9 millon as of September 2001. At the end of the quarter, deposits
totaled US$159.2 million, decreasing compared to US$193.1 million in June 2002
and also from US$191.0 million at the year-ago period. The past due loan ratio
was 4.7% in September 2002, decreasing from 5.5% at the end of last June, while
coverage with provisions was 73.8%, compared to 76.8%, respectively. Banco
Tequendama's loan market share, as of August 2002, was 1.50%, lower than 1.49%
obtained in December 2001. At the same dates, deposit market share increased to
0.85% from 0.78%.
19
II. BANCO DE CREDITO DEL PERU AND SUBSIDIARIES ("BCP")
II.1 NET INCOME
Consolidated net income for the nine month period ended September 30, 2002
was S/.186.0 million (US$51.0 million), increasing 36.5% compared to net income
of S/.136.2 million (US$37.4 million) in the same period of 2001. Net income for
the quarter ended September 30, 2002 was S/.61.3 million (US$16.8 million),
increasing 3.5% from S/.59.3 million (US$16.3 million) in the same period of
2001. Net income in both the nine month period and the third quarter of 2002
increased compared to the year-ago periods principally due to higher
non-interest income and exchange gains, registered as part of inflation
adjustment gains, that offset decreased net interest income and higher operating
expenses.
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
SUMMARY OF RESULTS (1)
(In constant S/. and U.S.$ millions, except net income per share)
------------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended
-------------------------------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.02 30.09.01 30.09.02 30.09.02
------------------------------------------------------------------------------------------------------------------
US$ US$
Net interest income 296.4 277.6 262.5 $72.0 876.7 818.0 $224.5
Provisions for loan losses, net 98.4 103.5 110.3 $30.3 315.3 301.3 $82.7
Other income 172.1 188.9 195.5 $53.6 487.0 567.1 $155.6
Other expenses 281.6 294.1 291.8 $80.1 851.6 876.6 $240.6
Result from exposure to inflation (8.3) 23.8 27.3 $7.5 (14.5) 51.5 $14.1
Income before income tax 80.1 92.7 83.2 $22.8 182.3 258.8 $71.0
Income Tax 20.9 26.8 21.9 $6.0 46.1 72.8 $20.0
Net Income 59.3 65.8 61.3 $16.8 136.2 186.0 $51.0
Net Income per share (2) 0.055 0.061 0.057 $0.016 0.127 0.173 $0.047
------------------------------------------------------------------------------------------------------------------
(1) Financial statements prepared according to Peruvian GAAP. The financial
information is in constant soles as of September 30, 2002. Figures in US$
have been translated at the exchange rate of S/.3.644 to the dollar.
(2) Based on 1,076 million outstanding shares in all periods.
II.2 NET INTEREST INCOME
Interest income, net of interest payments, in the third quarter of 2002
reached S/.262.5 million (US$72.0 million), decreasing 11.4% compared to the
same period of last year, and 5.4% compared to the preceding second quarter of
2002. The decline versus the prior year quarter is due to lower interest margins
and also to decreased loan volume, within a continuing excess liquidity
environment in both local and foreign currencies.
During the third quarter of 2002, the net interest margin was 5.57%,
decreasing from 6.03% in the second quarter of 2002, and also compared to 6.20%
during the same period in 2001. During the current quarter the margin decreased
mostly due to declining loan rates, both in local and foreign currency, which
were not fully offset by also lower deposit interest rates and lower cost of
funds.
II.3 NON-INTEREST INCOME
Non-interest income, including fee revenue and other non-interest items, in
the third quarter of 2002 amounted to S/.195.5 million (US$53.7 million), 13.6%
higher than income earned during the same period of 2001, mainly due to
increased fees from banking services.
20
In the third quarter of 2002, fees from banking services amounted to
S/.152.1 million (US$41.7 million), 17.6% higher than in the same period of
2001, mostly due to increased revenue from account maintenance, corporate
finance and foreign trade fees. (See note in table of Section I.2.) In the
quarter, fees on the most important banking services had the following growth
rates:
(In constant S/. Mn.) 3Q01 3Q02 Growth
---------------------------------------------------------
Contingent credits 5.6 6.9 23.0%
Foreign Trade 7.7 10.9 41.3%
Account Maintenance 30.8 39.5 28.4%
Insurance 6.3 6.5 2.8%
Collections fees 14.4 15.0 4.0%
Fund transfer services 24.3 25.8 6.0%
Credit card fees 14.1 16.8 18.9%
Brokerage 6.0 7.9 31.4%
Corporate Finance 1.8 6.1 238.2%
Loan administration 2.3 1.3 -43.6%
Shipping and handling 7.1 7.4 4.0%
Other 8.6 7.9 -8.3%
Total 129.2 152.1 17.6%
---------------------------------------------------------
In the third quarter of 2002, securities transactions resulted in a gain of
S/.1.1 million (US$0.3 million), lower than gains of S/.4.5 million (US$1.2
million) in the same period last year, and declines from S/.8.9 million (US$2.4
million) earned in the second quarter 2002 when gains on the sale of fixed
income securities, in addition to realized gains on sale of equity securities,
were obtained. After a 12.7% decline in the second quarter 2002, the general
index of the Lima Stock Exchange increased 1.3% in the third quarter of 2002,
compared to the decline of 9.6% in the same period last year.
Gains from foreign exchange operations were S/.19.1 million (US$5.2
million) in the third quarter of 2002, 5.1% over revenue in the preceding
quarter, but remains similar to gains in the same period in 2001, mainly due to
increased traded volumes, although margins decrease, prompted by instability in
the foreign exchange market where the Nuevo Sol devalued for the second
consecutive quarter.
The Other Income caption, where reversals of prior year expenses and
provisions and recoveries of certain operating costs from clients are booked,
increased from S/.19.4 million (US$5.3 million) in the third quarter of 2001 to
S/.23.3 million (US$6.4 million) in the current period, principally due to
increased recoveries of accounts charged-off in previous periods.
II.4 OTHER NON-INTEREST EXPENSES
Non-interest expenses during the third quarter of 2002 were S/.291.8
million (US$80.1 million), 3.6% above those of the same period in 2001, mainly
due to increased personnel and general expenses. Adjusted operating expenses,
determined by excluding provisions for assets received in lieu of loan repayment
and employee profit sharing expenses, reached S/.263.3 million (US$72.3 million)
in the third quarter of 2002, increasing 3.7% compared to the year-ago period.
Approximately 44% of non-interest expenses were attributable to employee
salaries and other expenses related to personnel. This concept increased 7.4% to
S/.128.8 million (US$35.4 million) when compared to the third quarter of 2001,
due principally to increased provisions for bonuses, severance payments and
profit sharing expense. At the end of the third quarter 2002 the number of
employees stood at 7,977, increasing from 7,821 employees as of June 2002,
mainly due to increased sales and teller positions at Banco de Credito del Peru,
Solucion Financiera and Banco de Credito de Bolivia.
21
General and Administrative expenses, which represented 35% of non-interest
expenses, reached S/.103.3 million (US$28.3 million) in the third quarter of
2002, increasing 19.6% when compared to expenses in the same period a year ago
mainly from non-recurring increases in expenses related to systems, third party
fees and marketing. Non-recurring expenses are related to BCP's new identity
campaign and system's restructuring projects, and in the nine months through
September 2002 amounted to S/.24.0 million (US$6.6 million), while S/.19.0
million (US$5.2 million) were incurred in third quarter 2002. (See note in table
of Section I.2.) In the quarter, the most significant general and administrative
expenses were:
(In constant S/. Mn.) 3Q01 3Q02 Chnge.
--------------------------------------------------------------
Office supplies and operating costs 11.0 12.4 13.1%
Communications 9.3 9.0 -3.0%
Third party fees 14.9 19.9 33.4%
Insurance and security 7.2 8.0 10.9%
Transport of currency and securities 11.1 11.6 4.3%
Systems and maintenance 15.2 21.6 42.1%
Advertising and marketing 14.9 17.3 16.4%
Other G&A 2.9 3.5 21.9%
Total G&A 86.4 103.3 19.6%
--------------------------------------------------------------
The Other caption within Other Non-Interest Expenses, decreased from
S/.34.8 million (US$9.6 million) in the third quarter of 2001 to S/.21.8 million
(US$6.0 million) in the current quarter, mainly due to gains on sale of
foreclosed assets registered within this caption.
The ratio of adjusted operating expenses (determined by excluding
provisions for assets received in lieu of loan repayment, employee profit
sharing expense and non-recurring expenses) as a percentage of average total
assets, slightly improves from 4.64% in the third quarter of 2001 to 4.56% in
the current period.
Adjusted operating expenses, as a percentage o total income, also improved
from 54.2% to 53.3% when comparing the third quarters of 2001 and 2002,
respectively.
II.5 ASSETS AND LIABILITIES
Total assets of BCP reached S/.21,795 million (US$5,981 million) at the end
of the third quarter of 2002, increasing 3.7% with respect to the balance at
June 2002, but remains similar to total assets at September 2001.
Total loans were S/.12,778 million (US$3,506 million) at the end of
September 2002, decreasing 1.7% compared to June 2002, and by 1.3% with respect
to September 2001. At September 30, 2002, the loan portfolio, net of provisions,
represented 53.5% of total assets, similar to the year-ago percentage. At the
end of the third quarter of 2002, the Nuevos Soles portion of the loan portfolio
was 14.9%, slightly over 14.2% in June 2002, and over 15.3% as of September
2001.
As of September 30, 2002 total deposits were S/.18,408 million (US$5,051
million), increasing 4.5% during the current quarter, but remains similar to
deposits at the end of the prior year quarter. During the present quarter, time
deposits increased 7.2%, demand deposits grew 3.2% and savings deposits by 0.9%.
Deposits denominated in Nuevos Soles were 21.9% of total deposits, slightly over
20.4% at June 2002, and also over 18.1% at the end of September 2001.
22
BCP's subsidiaries had the following loan, net of provisions, and deposit
contributions:
Loans, net Total Deposits
(In % and constant S/.Mn.) 3Q01 2Q02 3Q02 3Q01 2Q02 3Q02
------------------------------------------------------------------------------------------
Banco de Credito del Peru 76.0% 78.0% 81.4% 82.3% 84.6% 88.6%
Banco de Credito de Bolivia 11.9% 9.8% 9.2% 9.5% 8.4% 7.0%
Banco de Credito Overseas 4.9% 4.5% 1.3% 4.3% 3.0% 0.5%
Credito Leasing 5.5% 5.8% 6.1% 3.1% 2.9% 3.0%
Solucion Financiera de
Credito 1.7% 1.9% 2.0% 0.8% 1.1% 0.9%
TOTAL% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
------------------------------------------------------------------------------------------
BCP consolidated Total S/.11,723 S/.11,896 S/.11,655 S/.18,422 S/.17,621 S/.18,408
------------------------------------------------------------------------------------------
According to statistics from the Peruvian Banking Association (ASBANC) for
Peruvian commercial banks as of September 30, 2002, Banco de Credito del Peru
had a total loan market share of 27.8% (27.4% at September 30, 2001 and 27.2% at
June 30, 2002), and 32.9% of deposits (32.3% at September 30, 2001, and 31.4% at
June 30, 2002).
Loan portfolio composition by business segment developed as follows:
(In % of total and constant S/. Mn) 30.09.01 30.06.02 30.09.02
-----------------------------------------------------------------------
Corporate 45.1% 45.5% 46.7%
Middle market 27.1% 27.2% 26.3%
Retail: 27.8% 27.3% 27.0%
- small business 9.7% 11.3% 10.2%
- home mortgage 9.9% 8.1% 8.8%
- consumer 5.0% 4.6% 4.7%
- credit cards 3.3% 3.2% 3.3%
Total 100.0% 100.0% 100.0%
-----------------------------------------------------------------------
Total Loans S/.12,950 S/.12,999 S/.12,778
-----------------------------------------------------------------------
In the current quarter, loan balances declined 1.7%, with corporate loans
higher by 0.8%, to S/.5,963 million (US$1,636 million), while middle market
loans decreased by 4.9% to S/.3,364 million (US$923 million), and retail loans
lower by 2.5% to S/.3,455 million (US$948 million). Retail loans by product
performed as follows:
3Q01 2Q02 3Q02 3Q02 vs 3Q02 vs
(% change and constant S/. Mn) 2Q02 3Q01
-------------------------------------------------------------------------------------
Small business loans 1,243 1,471 1,307 -11.3% 5.0%
Mortgage loans 1,282 1,059 1,126 6.4% -12.1%
Consumer loans 647 596 601 0.9% -7.1%
Credit card loans 427 416 421 1.4% -1.4%
Total Retail 3,600 3,542 3,455 -2.5% -4.0%
-------------------------------------------------------------------------------------
The decline in mortgage loans compared to the prior year quarter is mostly
due to the reclassification of approximately S/.250 million (US$70 million) of
credits guaranteed with mortgages that are reported as commercial loans in 2002.
At September 30, 2002 contingent credits were S/.4,511 million (US$1,237.8
million), increasing 4.0% during the current quarter, and by 45.7% over the
September 2001 figure, as can be seen in the following chart:
23
3Q01 2Q02 3Q02 3Q02 vs 3Q02 vs
(% change and constant S/. Mn) 2Q02 3Q01
-----------------------------------------------------------------------------
- Guarantees and Stand-by LCs 1,596 2,069 1,878 -9.2% 17.6%
- Letters of Credit 324 423 392 -7.5% 21.0%
- Acceptances 135 102 107 5.1% -20.5%
- Foreign currency forwards 648 1,073 1,492 39.1% 130.4%
- Other contingent accounts 394 670 642 -4.1% 62.9%
Total Contingent Credits 3,096 4,336 4,511 4.0% 45.7%
-----------------------------------------------------------------------------
II.6 LOAN QUALITY
Loan quality improved even though past due loans slightly grew to S/.1,042
million (US$286.1 million) at September 30, 2002, 1.1% over the balance of
S/.1,031 million (US$282.9 million) as of the end of the second quarter of 2002,
but are 18.1% below S/.1,273 million (US$349.2 million) as of September 30,
2001. The ratio of past due loans as a percentage of total loans improved from
9.83% in September 2001 to 8.16% at September 30, 2002, but increased compared
to 7.93% at June 30, 2002.
At the end of the third quarter 2002, outstanding balances of loan loss
provisions totaled S/.1,122 million (US$308.0 million), increasing 1.7% compared
to the preceding quarter. The ratio of loan provisions to past due loans was
107.7% at the end of the current period, slightly higher than the 107.1% at June
2002 and better than the 96.4% past due coverage at September 2001.
Of total provisions outstanding at the end of the current quarter, S/.156.7
million (US$43.0 million) correspond to generic provisions assigned to loans in
the Normal (A) risk category, increasing from generic provisions of S/.139.1
million (US$38.2 million) at June 30, 2002.
Loans believed to be unrecoverable, fully provisioned in prior periods, and
written-off during the third quarter 2002 amounted to S/.98.9 million (US$27.1
million), of which approximately 12% were related to consumer loans and 13% to
agricultural loans under the Agricultural Financial Relief ("RFA") program. This
compares to charge-offs in the second quarter of 2002 of S/.167.6 million
(US$47.0 million), and S/.74.9 million (US$21.5 million) in the year-ago third
quarter.
At the end of the quarter, refinanced loans amounted to S/.860.0 million
(US$245.0 million), lower than the balance at June 2002 that was S/.897.7
million (US$255.7 million).
Loans classified as Substandard (i.e., Deficient, Doubtful and Loss) were
19.0% of the loan portfolio in September 2002, decreasing from the ratios of
20.2% and 19.5% that resulted in September 2001 and June 2002, respectively. The
loan classification is as follows:
(% of Total loans and S/.Mn const.) 30.09.01 30.06.02 30.09.02
--------------------------------------------------------------------------
A: Normal 70.4% 68.7% 70.8%
B: Potential Problem 9.3% 11.8% 10.2%
C: Deficient 8.6% 9.2% 9.2%
D: Doubtful 5.0% 5.4% 5.0%
E: Loss 6.6% 4.9% 4.8%
Total 100.0% 100.0% 100.0%
--------------------------------------------------------------------------
Total Loans S/.12,950 S/.12,999 S/.12,778
--------------------------------------------------------------------------
In the third quarter of 2002, loan loss provisions, net of recoveries, for
the amount of S/.110.3 million (US$30.3 million) were charged against income,
increasing over S/.103.5 (US$28.4 million) provisioned in the second quarter
2002, and also compared to provision expense in the third quarter of 2001 which
was S/.98.4 million (US$27.0 million). Quarterly provision expense charged to
each business segment is as follows:
24
(% of Provision expense and S/.Mn const.) 3Q01 2Q02 3Q02
-----------------------------------------------------------------------------
Corporate Banking 6.1% 24.9% 25.7%
Middle Market 68.8% 30.3% 37.8%
Retail 25.1% 44.8% 36.5%
Total 100.0% 100.0% 100.0%
-----------------------------------------------------------------------------
Total Provision Expense, net S/.98.4 S/. 103.5 S/.110.3
-----------------------------------------------------------------------------
II.7 CAPITAL ADEQUACY
At the end of the third quarter of 2002, BCP's unconsolidated ratio of
risk-weighted assets to regulatory capital was 9.6 to 1.0 (10.4%), while the
corresponding consolidated ratio was 7.9 to 1.0 (12.7%). Risk-weighted assets
include S/.928.4 million (US$254.8 million) of market-risk exposure whose
coverage required S/.84.4 million (US$23.2 million) of regulatory capital at
September 30, 2002. Peruvian regulations limit risk-weighted assets to a ratio
of 11.0 to 1.0 (9.1%).
As of September 30, 2002, BCP's consolidated "regulatory capital" was
S/.2,006 million (US$550.5 million), remaining similar to the preceding quarter
capital. Regulatory capital included S/.90.0 million ($34.5 million) in
subordinated debt in the current period, decreasing from S/.127.8 million
(US$35.1 million) at June 2002.
BCP unconsolidated BCP consolidated
(In constant S/. Mn.) 30.09.01 30.09.02 30.09.01 30.09.02
-----------------------------------------------------------------------
Regulatory capital 1,562 1,377 2,076 2,006
Risk weighted assets 12,638 13,261 16,143 15,758
Weighted assets / Capital 8.1 9.6 7.8 7.9
Capital / Weighted Assets 12.4% 10.4% 12.9% 12.7%
-----------------------------------------------------------------------
25
III. ATLANTIC SECURITY HOLDING CORPORATION AND SUBSIDIARIES ("ASHC")
Consolidated net income for the nine-month period ended September 30, 2002
was US$5.6 million, 10.2% over US$5.1 million in the same period of 2001. Third
quarter 2002 net income was US$0.1 million, compared to a net loss of US$1.4
million in the year-ago quarter. The net income in the current quarter compared
to the loss in the prior year period is due to decreased market value
provisions, partly offset by losses on securities transactions registered in the
third quarter of 2002.
Net interest income before risk provisions, which includes dividend income,
was US$4.3 million in the third quarter of 2002, remaining similar to the net
interest income in the same quarter of 2001. Dividends received in both periods
were not significant.
Net interest margin, without considering dividends and investments in
equity shares, was 3.0% during third quarter 2002, above the 2.5% margin in the
year-ago period, mainly due to lower cost of funds. The margin decreases
compared to 3.4% in the preceding second quarter, mainly due to interest
collected from bonds which were accounted on a cash-basis in that period.
In the third quarter of 2002 charges against income for market risk
provisions amounted to US$1.0 million, increasing from US$0.8 million charged in
the preceding quarter, but lower than US$7.3 million provisioned in the year-ago
period. In the current quarter US$0.3 million were also provisioned for credit
risks.
Other Income, which includes fee income and realized gains on securities
transactions before risk provisions, decreased from a loss of US$1.3 million in
the second quarter of 2002 to a loss of US$0.4 million in the current quarter,
mainly due to lower realized losses on securities transactions of US$1.7 million
in the current period compared to losses of US$2.9 million in the second quarter
of 2002.
The loan portfolio, net of provisions, was US$153.8 million as of September
30, 2002, decreasing compared to US$206.9 million at September 2001, mainly due
to decreased lending to Peruvian companies and lower risk-participated loans,
and, additionally, to the reclassification of purchased loans that are
registered as investments since the close of December 2001.
The investment portfolio was US$298.9 million at September 2002, over
US$263.9 million last September 2001, but below US$312.3 million in the
preceding quarter. The increase compared to the year-ago period is partly due to
the reclassification mentioned in the previous paragraph, while the decrease
with respect to the second quarter 2002 is principally because of lower
valuations in the capital markets.
Deposits amounted to US$537.3 million at September 30, 2002, decreasing
from US$543.3 million at the end of the third quarter of 2001. The decline is
mostly due to lower bank deposit interest rates, resulting in transfers into
other investments.
Funds under management increased 29.5% to US$481.8 million at September 30,
2002, from US$372.2 million at the end of the third quarter of 2001, and 1.6%
compared to US$474.3 million at the second quarter 2002. The increase is
principally due to the introduction of new structured products and funds under
management with higher yields than interest paid on bank deposits, while the
growth slowdown in the current quarter was due to withdrawals caused by high
market volatility.
Net equity reached US$102.4 million at the end of September 2002, lower
than US$104.7 million at June 2002 mainly due to higher special equity reserves
for unrealized losses on investments which increased from US$12.8 million at the
end of June 2002, to US$15.1 million at the end of the current quarter. The loan
portfolio had no past dues.
The ratio of operating expenses over average assets was 1.5%, annualized,
in the third quarter of 2002 remaining similar to the ratio during the year-ago
period. This ratio declines to 0.9% in the third quarter of 2002, when funds
under management are included within total assets, improving over 1.0% in the
prior year quarter.
26
IV. EL PACIFICO-PERUANO SUIZA AND SUBSIDIARIES ("PPS")
PPS obtained in the nine-month period ended September 30, 2002 a
consolidated net income of S/.34.6 million (US$9.5 million), compared to S/.2.9
million (US$0.8 million) in the same period of 2001. Net income in the third
quarter 2002 was S/.12.3 million (US$3.4 million), higher than S/.7.6 million
(US$2.1 million) in the year-ago quarter. Increased net income in the first nine
months of 2002 and in the current quarter is mainly due to higher premiums and
to lower claims.
Total premiums in the third quarter of 2002, increased 20.2% to S/.232.4
million (US$63.8 million), compared to S/.196.3 million (US$53.1 million) in the
year-ago quarter, and by 21.6% compared to S/.191.1 million (US$52.4 million) in
the preceding second quarter. Net premiums earned, net of reinsured premiums and
reserves, were S/.128.8 million (US$35.4 million) in third quarter 2002, 17.4%
above the prior year quarter, mainly due to higher ceded premiums. Also,
premiums grew because of increased prices due to higher international
reinsurance costs.
Additions to technical reserves for premiums grew by S/.26.5 million
(US$7.3 million) in the third quarter of 2002, most of which were established by
Pacifico Vida for its life annuities and life insurance lines, and remained
similar to reserves in the year-ago quarter.
Comparing results of the nine-month periods through September 2002 and
2001, consolidated premiums consisted of: general insurance lines that amounted
to 63.1% of total premiums and increased 29.9%, while PacificoSalud's premiums
were 9.6%, increasing 6.9%, and premiums by Pacifico Vida amounted to 27.3% and
grew 7.7%.
Through September 30, 2002, growth of the health and medical assistance
insurance line (21.2% of total premiums) was 6.5%; fire insurance lines (23.9%
of total premiums) increased 77.4%; while the automobile insurance line (6.7% of
total premiums) decreased 14.3%. In the first nine months of 2002, pension fund
benefits insurance (8.3% of total premiums) grew 11.9%, while group life
insurance and individual life insurance policies (10.4% of total premiums) grew
13.1%, and life annuities (7.5% of total premiums) decreased 3.4% compared to
the same period in 2001.
Net underwriting results was S/.21.7 million (US$5.9 million) in the third
quarter of 2002, compared to S/.15.3 million (US$4.2 million) in the prior year
quarter. The ratio of net underwriting results (net premiums less reserves and
claims as a percentage of total premiums) was 9.3% in the third quarter of 2002,
improving compared to 7.8% in the prior year period, and to 5.2% in the second
quarter 2002 which had higher claims.
Net claims incurred in the third quarter of 2002 were S/.91.8 million
(US$25.2 million), 3.2% over claims in the same 2001 quarter, but 4.4% lower
than in the preceding quarter. The net loss ratio (net claims to net premiums)
decreases to 59.1% in the current quarter from 65.3% in third quarter 2001, and
from 68.4% in the preceding second quarter. The net loss ratio in the first nine
months of 2002 was 58.4%, lower than 66.7% in the year-ago period, but continues
high in pension fund insurance (113%), health (82%) and in Pacifico Salud (80%).
The combined ratio (the sum of net claims, general expenses and
commissions, as a percentage of net premiums) decreased from 87.6% in the third
quarter of 2001 to 81.1% in the current quarter, due to lower claims,
principally in fire insurance.
Operating expenses over net premiums declined from 17.5% to 16.1% comparing
the third quarters of 2001 and 2002, respectively.
Investments in real estate and financial assets were S/.987.5 million
(US$271.0 million) at the end of September 2002, increasing 21.8% from the
year-ago balance.
27
As of September 30, 2002, total assets were S/.1,463.1 million (US$401.5
million) increasing 26.5% compared to the year-ago balance. At the end of the
current period net equity amounted to S/.353.4 million (US$97.0 million)
increasing 19.4% over net equity at September 2001.
The Peruvian insurance market through August 31, 2002, increased total
premiums 20.3% with respect to the prior year period, in nominal terms, reaching
US$453.1 million, mainly due to higher reinsurance costs. For the first eight
months of 2002, PPS's market share in total premiums was 36.8% (33.5% in the
year-ago period), with the share in general risks lines being 35.1%, and in life
insurance and pension fund benefits lines of 31.2% and 27.9% (36.0%, 29.9% and
25.9% as of August 2001, respectively).
28
CREDICORP LTD. AND SUBSIDIARIES
Table 1
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars)
--------------------------------------------------------------------------------------------------
As of
-------------------------------------------------------
ASSETS Sep. 30, 2001 Dec. 31, 2001 Jun. 30, 2002 Sep. 30, 2002
--------------------------------------------------------------------------------------------------
CASH AND DUE FROM BANKS
-----------------------
Cash and non interest bearing deposits
in banks 244,009 277,841 239,724 251,670
Interest bearing deposits in banks 1,924,882 1,675,562 1,469,750 1,768,854
-------------------------------------------------------
2,168,891 1,953,403 1,709,474 2,020,524
-------------------------------------------------------
MARKETABLE SECURITIES, net 511,821 516,376 498,453 518,108
LOANS 4,313,517 4,064,479 4,045,408 3,869,572
-----
Current 3,929,175 3,713,644 3,729,116 3,559,161
Past Due 384,342 350,835 316,292 310,411
Less - Reserve for possible loan losses (355,793) (344,433) (314,076) (310,787)
LOANS NET 3,957,724 3,720,046 3,731,332 3,558,785
----------
INVESTMENT SECURITIES AVAILABLE FOR SALE 615,003 584,293 620,141 618,286
REINSURANCE ASSETS 44,617 45,663 35,012 39,279
PREMIUMS AND OTHER POLICYHOLDER RECEIVABLES 47,156 54,587 65,141 63,020
PROPERTY, PLANT and EQUIPMENT, net 251,864 258,870 248,184 244,050
DUE FROM CUSTOMERS ON ACCEPTANCES 40,605 38,606 29,617 30,453
OTHER ASSETS 393,936 417,072 354,004 306,543
TOTAL ASSETS 8,031,617 7,588,916 7,291,358 7,399,048
--------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS AND OBLIGATIONS:
-------------------------
Non-interest bearing 632,154 766,607 686,970 685,739
Interest bearing 5,398,318 4,960,884 4,827,277 4,948,560
-------------------------------------------------------
6,030,472 5,727,491 5,514,247 5,634,299
-------------------------------------------------------
DUE TO BANKS AND CORRESPONDENTS 479,749 341,452 302,846 305,384
ACCEPTANCES OUTSTANDING 40,605 38,606 29,617 30,453
RESERVE FOR PROPERTY AND CASUALTY CLAIMS 185,649 193,452 208,188 212,514
RESERVE FOR UNEARNED PREMIUMS 39,185 44,707 47,808 51,189
REINSURANCE PAYABLE 22,793 23,801 25,585 30,564
OTHER LIABILITIES 327,376 310,383 298,658 271,845
MINORITY INTEREST 103,073 112,255 63,031 64,311
TOTAL LIABILITIES 7,228,902 6,792,147 6,489,980 6,600,559
NET SHAREHOLDERS' EQUITY 802,715 796,769 801,378 798,489
--------------------------------------------------------------------------------------------------
TOTAL LIABILITIES and NET SHAREHOLDERS'
EQUITY 8,031,617 7,588,916 7,291,358 7,399,048
CONTINGENT CREDITS 917,791 1,079,749 1,282,967 1,310,519
29
CREDICORP LTD. AND SUBSIDIARIES
Table 2
CONSOLIDATED INCOME STATEMENTS
(In thousands of U.S. Dollars)
----------------------------------------------------------------------------------------------------
Three months ended Nine months ended
----------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.01 30.09.02
----------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest on loans 134,915 108,242 98,991 420,469 319,027
Interest and dividends on investments: 352 798 304 2,007 1,803
Interest on deposits with banks 17,849 8,155 10,420 54,989 26,286
Interest on trading securities 20,026 17,416 9,915 62,246 43,444
----------------------------------------------------------
Total Interest Income 173,142 134,611 119,630 539,711 390,560
----------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 55,709 30,051 28,090 178,861 89,392
Interest on borrowed funds 13,222 6,545 5,464 48,790 20,149
Other interest expense 9,844 7,571 8,585 30,330 24,942
----------------------------------------------------------
Total Interest Expense 78,775 44,167 42,139 257,981 134,483
----------------------------------------------------------
Net Interest Income 94,367 90,444 77,491 281,730 256,077
----------------------------------------------------------------------------------------------------
Provision for possible loan losses, net 29,956 30,337 32,236 93,963 87,911
Net interest income after provision for
possible loan losses 64,411 60,107 45,255 187,767 168,166
OTHER INCOME
Fees and commissions from banking
services 39,202 41,154 43,834 113,104 124,858
Net gains from sales of securities (2,863) (2,326) (5,658) (1,191) (6,544)
Net gains on foreign exchange
transactions 6,219 5,758 5,539 13,528 15,617
Net premiums earned 28,040 31,410 31,326 84,959 94,364
Other income 10,571 13,477 14,608 30,711 38,361
----------------------------------------------------------
81,169 89,473 89,649 241,111 266,656
----------------------------------------------------------
CLAIMS ON INSURANCE ACTIVITIES
Net claims incurred 4,252 8,189 4,834 21,755 18,671
Increase in future policy benefits for
life and health 20,192 18,679 20,629 53,261 54,724
----------------------------------------------------------
24,444 26,868 25,463 75,016 73,395
----------------------------------------------------------
OTHER EXPENSES
Salaries and employee benefits 44,140 44,747 43,608 130,075 133,927
General, administrative, and other taxes 33,153 33,664 32,970 98,406 98,625
Depreciation and amortization 11,421 10,934 10,722 34,335 32,828
Other 13,922 11,135 7,581 42,160 30,497
----------------------------------------------------------
102,636 100,480 94,881 304,976 295,877
----------------------------------------------------------
Translation result (551) (59) (900) (3,410) (2,866)
Income before income tax, and minority
interest 17,949 22,173 13,660 45,476 62,684
Income Tax (3,623) (9,075) (8,809) (11,061) (26,641)
Minority Interest (3,199) (2,075) (1,771) (6,412) (7,177)
NET INCOME 11,127 11,023 3,080 28,003 28,866
30
CREDICORP LTD. AND SUBSIDIARIES
Table 3
SELECTED FINANCIAL INDICATORS
----------------------------------------------------------------------------------------------------
Three months ended Nine months ended
---------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.01 30.09.02
----------------------------------------------------------------------------------------------------
Profitability
-------------------------------------------
Net income per common share (US$ per
share)(1) 0.139 0.138 0.039 0.349 0.362
Net interest margin on interest earning
assets (2) 5.97% 6.30% 5.37% 6.05% 5.88%
Return on average total assets (2)(3) 0.56% 0.60% 0.17% 0.48% 0.51%
Return on average shareholders' equity
(2)(3) 5.58% 5.50% 1.54% 4.71% 4.83%
No. of outstanding shares (millions)(4) 80.18 79.75 79.75 80.18 79.75
Quality of loan portfolio
-------------------------------------------
Past due loans as a percentage of total
loans 8.91% 7.82% 8.02% 8.91% 8.02%
Reserves for loan losses as a percentage
of
total past due loans 92.57% 99.30% 100.12% 92.57% 100.12%
Reserves for loan losses as a percentage
of
total loans 8.25% 7.76% 8.03% 8.25% 8.03%
Reserves for loan losses as a percentage
of
substandard loans (C+D+E) 45.40% 42.88% 45.38% 45.40% 45.38%
Past due loans - reserves for loan losses
as a
percentage of shareholders' equity 3.56% 0.28% -0.05% 3.56% -0.05%
Operating efficiency
-------------------------------------------
Oper. expense as a percent. of total
income (5) 53.94% 50.51% 49.14% 54.12% 50.98%
Oper. expense as a percent. of av. tot.
assets(2)(3)(5) 4.73% 4.94% 4.47% 4.82% 4.74%
Capital adequacy
-------------------------------------------
Total Regulatory Capital (US$Mn) 756.2 718.7 716.9 756.2 716.9
Tier I Capital (US$Mn) 615.2 608.8 608.8 615.2 608.8
Regulatory capital / risk-weighted assets
(6) 12.55% 12.03% 12.22% 12.55% 12.22%
Average balances (US$Mn) (3)
-------------------------------------------
Interest earning assets 6,324.5 5,741.3 5,771.7 6,208.7 5,808.6
Total Assets 8,006.3 7,362.4 7,345.2 7,829.3 7,494.0
Net equity 797.2 801.4 799.9 792.7 797.6
----------------------------------------------------------------------------------------------------
(1) The number of shares outstanding of 79.8 million in 2Q02 and 3Q02, and 80.2
million in 3Q01.
(2) Ratios are annualized.
(3) Averages are determined as the average of period-beginning and
period-ending balances.
(4) Net of treasury shares. The total number of shares was of 94.38 million.
(5) Total income includes net interest income and other income. Operating
expense is net of provisions for other assets received in lieu of loan
repayment and mandatory employee profit sharing expense.
(6) Risk-weighted assets include market risk assets.
31
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 4
CONSOLIDATED BALANCE SHEETS
(Constant Nuevos Soles, as of September 30, 2002, and U.S. Dollars in thousands)
---------------------------------------------------------------------------------------------------------------
ASSETS 30.09.01 31.12.01 30.06.02 30.09.02 30.09.02
---------------------------------------------------------------------------------------------------------------
US$000(1)
CASH AND DUE FROM BANKS 6,802.717 6,068.103 5,802.466 6,751.464 $1,852.762
---------------------------------------------------------------------------------------------------------------
Cash and Checks 783.444 863.668 825.269 873.400 $239.682
Deposits in Central Bank of Peru 4,348.014 3,845.914 3,865.556 4,861.173 $1,334.021
Deposits with local and foreign banks 1,671.259 1,358.521 1,111.641 1,016.891 $279.059
MARKETABLE SECURITIES, net 1,526.661 1,534.507 1,469.810 1,656.219 $454.506
LOANS 12,949.898 12,908.608 12,999.449 12,777.599 $3,506.476
---------------------------------------------------------------------------------------------------------------
Current 11,677.380 11,774.543 11,968.692 11,735.168 $3,220.408
Past Due 1,272.518 1,134.065 1,030.757 1,042.431 $286.068
Less - Reserve for possible loan losses (1,226.884) (1,192.392) (1,103.645) (1,122.271) ($307.978)
LOANS NET 11,723.014 11,716.216 11,895.804 11,655.328 $3,198.498
---------------------------------------------------------------------------------------------------------------
INVESTMENT SECURITIES AVAILABLE FOR SALE 329.129 307.458 373.204 418.333 $114.800
PROPERTY, PLANT and EQUIPMENT, net 640.846 656.819 625.742 615.541 $168.919
OTHER ASSETS 965.162 942.044 854.264 698.304 $191.631
TOTAL ASSETS 21,987.529 21,225.147 21,021.290 21,795.189 $5,981.117
LIABILITIES AND SHAREHOLDERS' EQUITY
DEPOSITS AND OBLIGATIONS: 18,421.804 17,898.193 17,620.804 18,407.651 $5,051.496
---------------------------------------------------------------------------------------------------------------
Demand deposits 3,454.221 3,771.740 3,765.364 3,885.345 $1,066.231
Saving accounts 5,042.700 5,343.149 5,166.269 5,210.494 $1,429.883
Time deposits 9,924.883 8,783.304 8,689.171 9,311.812 $2,555.382
DUE TO BANKS AND CORRESPONDENTS 602.694 481.792 387.860 463.847 $127.291
OTHER LIABILITIES 1,129.580 980.346 1,117.905 967.494 $265.503
SHAREHOLDERS EQUITY: 1,833.451 1,864.815 1,894.720 1,956.197 $536.827
---------------------------------------------------------------------------------------------------------------
Capital stock 1,032.485 1,022.810 1,096.865 1,096.956 $301.031
Legal reserve 664.208 658.154 648.833 648.886 $178.070
Retained earnings 136.758 183.851 149.022 210.355 $57.726
TOTAL LIABILITIES AND EQUITY 21,987.529 21,225.146 21,021.289 21,795.189 $5,981.117
Contingent Credits 3,096.335 3,593.270 4,335.720 4,510.605 $1,237.817
---------------------------------------------------------------------------------------------------------------
(1)Translated at S/.3.644 per US$1.00.
32
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 5
CONSOLIDATED INCOME STATEMENTS
(Constant Nuevos Soles, as of September 30, 2002 and U.S. Dollars in thousands)
-----------------------------------------------------------------------------------------------------
Three months ended Nine months ended
--------------------------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.02 30.09.01 30.09.02 30.09.02
-----------------------------------------------------------------------------------------------------
Interest income and expense US$000(1) US$000(1)
Interest income 511.143 401.733 383.898 $105.351 1,589.461 1,193.583 $327.547
Less - Interest expense 214.773 124.145 121.406 $33.317 712.738 375.567 $103.064
--------------------------------------------------------------------------
Net interest income 296.370 277.588 262.492 $72.034 876.723 818.016 $224.483
-----------------------------------------------------------------------------------------------------
Provisions for possible
loan losses, net 98.429 103.518 110.310 $30.272 315.334 301.303 $82.685
Net interest income after
provisions 197.941 174.070 152.182 $41.762 561.389 516.713 $141.798
-----------------------------------------------------------------------------------------------------
Other Income
Fees and commissions from
services 129.248 137.996 152.053 $41.727 371.377 421.860 $115.768
Net gains from sales of
securities 4.453 8.892 1.077 $0.296 14.624 25.767 $7.071
Net gains on foreing
exchg. transacts. 19.027 18.181 19.110 $5.244 45.961 53.124 $14.578
Other income 19.404 23.817 23.260 $6.383 55.072 66.355 $18.209
--------------------------------------------------------------------------
172.132 188.886 195.500 $53.650 487.034 567.106 $155.627
--------------------------------------------------------------------------
Other Expenses
Salaries and employee
benefits 119.942 129.133 128.844 $35.358 361.556 387.478 $106.333
General and
administrative 86.380 90.738 103.300 $28.348 255.222 279.089 $76.589
Depreciation and
amortization 30.375 29.554 29.197 $8.012 89.562 88.341 $24.243
Taxes other than income
tax 10.150 8.268 8.664 $2.378 31.029 25.356 $6.958
Other 34.802 36.402 21.789 $5.979 114.216 96.304 $26.428
--------------------------------------------------------------------------
281.649 294.095 291.794 $80.075 851.585 876.568 $240.551
--------------------------------------------------------------------------
Result from exposure to
inflation (8.293) 23.809 27.337 $7.502 (14.495) 51.513 $14.136
Income before income tax 80.131 92.670 83.225 $22.839 182.343 258.764 $71.011
Income Tax 20.868 26.846 21.896 $6.009 46.149 72.810 $19.981
NET INCOME 59.263 65.824 61.329 $16.830 136.194 185.954 $51.030
-----------------------------------------------------------------------------------------------------
(1)Translated at S/.3.644 per US$1.00.
33
BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 6
SELECTED FINANCIAL INDICATORS
------------------------------------------------------------------------------------------------
Three months ended: Nine months ended
----------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.01 30.09.02
------------------------------------------------------------------------------------------------
Profitability
-------------
Net income per common share (S/. per
share)(1) 0.055 0.061 0.057 0.127 0.173
Net interest margin on interest
earning assets (2) 6.20% 6.03% 5.57% 6.19% 5.85%
Return on average total assets (2)(3) 1.08% 1.25% 1.15% 0.84% 1.15%
Return on average shareholders'
equity (2)(3) 13.11% 14.11% 12.74% 10.19% 12.98%
Quality of loan portfolio
-------------------------
Past due loans as a percentage of
total loans 9.83% 7.93% 8.16% 9.83% 8.16%
Reserves for loan losses as a
percentage of
total past due loans 96.41% 107.07% 107.66% 96.41% 107.66%
Reserves for loan losses as a
percentage of
total loans 9.47% 8.49% 8.78% 9.47% 8.78%
Reserves for loan losses as a
percentage of
substandard loans (C+D+E) 46.86% 43.51% 46.19% 46.86% 46.19%
Past due loans - reserves for loan
losses as a
percentage of shareholders'
equity 2.49% -3.85% -4.08% 2.49% -4.08%
Operating efficiency (5)
--------------------------------------
Oper. expense as a percent. of total
income (4) 54.18% 55.45% 53.34% 56.81% 55.50%
Oper. expense as a percent. of av.
tot. assets(2)(3) 4.64% 4.91% 4.56% 4.79% 4.77%
Capital adequacy
--------------------------------------
Total Regulatory capital (constant
millions S/.) 2,076.3 2,030.4 2,006.1 2,076.3 2,006.1
Tier I Capital (constant millions
S/.) 1,696.7 1,745.7 1,745.8 1,696.7 1,745.8
Net equity as a percentage of period
end total assets 8.34% 9.01% 8.98% 8.34% 8.98%
Regulatory capital / risk-weighted
assets 12.86% 12.18% 12.73% 12.86% 12.73%
Average balances (constant millions
S/.) (3)
--------------------------------------
Interest earning assets 19,118.4 18,408.2 18,842.6 18,631.5 18,891.5
Total Assets 21,892.5 21,070.8 21,408.2 21,575.9 21,510.2
Net equity 1,807.8 1,866.5 1,925.5 1,782.4 1,910.5
Additional data
--------------------------------------
No. of outstanding shares (millions) 1026.3 1076.5 1076.5 1026.3 1076.5
No. of employees 7,547 7,821 7,977 7,547 7,977
Inflation rate ( Wholesale price
index) -0.80% 0.66% 1.70% -0.97% 2.37%
Exchange rate (S/. per 1 U.S.
Dollar) 3.48 3.51 3.64 3.48 3.64
------------------------------------------------------------------------------------------------
(1) Shares outstanding of 1,076 million is used for all periods since shares
have been issued only for capitalization of profits and inflation
adjustment.
(2) Ratios are annualized.
(3) Averages are determined as the average of period-beginning and
period-ending balances.
(4) Total income includes net interest income and other income.
(5) Operating expense does not include mandatory employee profit sharing
expense nor provisions for other assets received in lieu of loan repayment.
34
ATLANTIC SECURITY HOLDING CORPORATION
Table 7
SELECTED FINANCIAL DATA
(Thousands of U.S. Dollars, except net income per share, and percentages)
---------------------------------------------------------------------------------------------------------------------
Three months ended Nine months ended
------------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.01 30.09.02
---------------------------------------------------------------------------------------------------------------------
Results
---------
Net Interest Income 4,236 6,747 4,254 14,335 17,813
Provisions for market risks 7,521 898 1,332 8,441 6,452
Other Income(1) 4,489 (1,329) (357) 7,668 1,578
Operating Expense 2,607 2,388 2,489 8,465 7,322
Net Income (1,403) 2,132 75 5,097 5,616
Net Income per share (US$) (0.04) 0.05 0.00 0.13 0.14
Balance Sheets (end of period)
--------------------------------
Total Assets 687,352 632,867 656,796 687,352 656,796
Loan portfolio, net 206,929 167,235 153,820 206,929 153,820
Marketable securities and investments 263,894 312,297 298,905 263,894 298,905
Total Deposits 543,266 503,509 537,333 543,266 537,333
Shareholders' equity 119,922 104,655 102,381 119,922 102,381
Funds under administration 372,204 474,291 481,840 372,204 481,840
Ratios (2)
----------------------
Net interest margin / interest earning assets (3)(4)(5) 2.5% 3.4% 3.0% 2.6% 3.2%
Return on average stockholders' equity(4) -4.5% 7.9% 0.3% 5.4% 6.5%
Return on average total assets(4) -0.8% 1.3% 0.0% 0.9% 1.1%
Past due loans as a percentage of total loans 0.0% 0.0% 0.0% 0.0% 0.0%
Reserves for loan losses as a percentage
of total loans 0.2% 0.1% 0.4% 0.2% 0.4%
Operating expense / total income(6) 29.9% 44.1% 63.9% 38.5% 37.8%
Operating expense / average total assets(4) 1.5% 1.5% 1.5% 1.6% 1.4%
Operating expense / average total assets +
funds under management(4) 1.0% 0.8% 0.9% 1.1% 0.9%
---------------------------------------------------------------------------------------------------------------------
(1) Includes realized gains in securities.
(2) Averages are determined as the average of period-beginning and
period-ending balances.
(3) Averages determined from monthly balances.
(4) Annualized.
(5) Without considering dividend income and dividend earning assets.
(6) Without considering provisions for investments.
35
EL PACIFICO-PERUANO SUIZA AND SUBSIDIARIES
Table 8
SELECTED FINANCIAL DATA
(Constant Nuevos Soles as of September 30, 2002, and
U.S. Dollars in thousands, except net income per share)
-----------------------------------------------------------------------------------------------------
As of and for the three month As of and for the nine month
period ended period ended
-----------------------------------------------------------------------
30.09.01 30.06.02 30.09.02 30.09.02 30.09.01 30.09.02 30.09.02
-----------------------------------------------------------------------------------------------------
Results US$000(1) US$000(1)
------------------------------
Total gross Premiums 196,323 191,126 232,368 $63,767 545,604 663,094 $181,969
Change in Reserves 26,587 24,175 26,528 $7,280 89,566 89,675 $24,609
Net Underwriting Results 15,301 9,850 21,659 $5,944 17,785 58,612 $16,085
Net Financial Income 17,276 28,756 19,808 $5,436 51,568 65,080 $17,859
General Expenses 23,914 27,258 25,029 $6,868 70,199 78,916 $21,656
Net Income 7,628 9,890 12,315 $3,379 2,890 34,605 $9,496
Net Income per share
(S/.)(2) 0.330 0.424 0.528 $0.145 0.125 1.484 $0.407
Balance Sheets (end of
period)
------------------------------
Total Assets 1,156,377 1,355,932 1,463,060 $401,498 1,156,377 1,463,060 $401,498
Investments in Secur. and
Real estate 735,824 943,006 987,451 $270,980 735,824 987,451 $270,980
Technical Reserves 663,679 821,219 862,912 $236,803 663,679 862,912 $236,803
Net Equity 295,845 339,195 353,350 $96,968 295,845 353,350 $96,968
Ratios
------------------------------
Net underwriting results 7.8% 5.2% 9.3% 9.3% 3.3% 8.8% 8.8%
Loss ratio 67.3% 51.4% 44.5% 44.5% 64.8% 43.8% 43.8%
Return on avge. equity
(3)(4) 10.9% 12.4% 15.0% 15.0% 1.3% 11.2% 11.2%
Return on total premiums 3.9% 5.2% 5.3% 5.3% 0.5% 5.2% 5.2%
Shareholders' Equity /
Total Assets 25.6% 25.0% 24.2% 24.2% 25.6% 24.2% 24.2%
Increase in Risk Reserves 19.5% 17.2% 17.1% 17.1% 21.8% 19.8% 19.8%
Combined Ratio 87.6% 91.8% 81.1% 81.1% 89.9% 81.0% 81.0%
-----------------------------------------------------------------------------------------------------
- Net Claims / Net
Premiums 65.3% 68.4% 59.1% 59.1% 66.7% 58.4% 58.4%
- Op. Exp.+Comiss./Net
Premiums 22.3% 23.4% 22.0% 22.0% 23.2% 22.5% 22.5%
Operating expense/Net
Premiums 17.5% 19.4% 16.1% 16.1% 17.1% 17.4% 17.4%
Oper. expense / Avge. assets
(3)(4) 8.8% 8.4% 7.3% 7.3% 8.8% 7.5% 7.5%
-----------------------------------------------------------------------------------------------------
(1) Translated at S/.3.644 per US$1.00.
(2) Based on 23.3 million shares in all periods.
(3) Averages are determined as the average of period- beginning and
period-ending balances.
(4) Annualized.
36
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Credicorp Ltd.
By: -------------------------------
Name : Ray Campos
Title: Authorized Representative
Dated: November 15, 2002
37