Q2 2020 Credicorp Ltd Earnings Call

[music].

Good morning, everyone I would like to welcome all of your credit Card Ltd second quarter 2020 Conference call. We now have all of our speakers in conference. Please be aware that each of your line is any listen only mode.

In conclusion of today's presentation, we will open the floor for questions.

Time instructions will be given as to the procedure to follow if he would like asking question.

With us today is Mr., Walter Bayly, Chief Executive Officer.

Mr., John Franco Ferrari Deputy Chief Executive Officer.

Mr., Andrew Correia, Deputy Chief Executive Officer.

Mr Renato Llosa, Chief risk officer.

Mr stays are Reos Chief financial Officer.

Mr. Francescas Raso WD CEO of BCP, and Messaged me lockers stick with Investor Relations Officer.

It is now my pleasure to turn the conference over Q credit porch Investor Relations Officer, Ms. Me loggers Sequoia missing Buenos you may begin.

Good morning, everyone and welcome to play.

School.

In summary presentation I'd like to invite you to acquire any company event.

He has been plenty on Oh, let's first day trend.

On September one celebrates its twentyth anniversary.

So on the New York Exchange.

Next week.

When you see all my team to date, putting that he signed me very nice that'd be then we'll be at 930 <unk> Eastern time, Warner <unk> first anything I wasn't far wants to see all of our Investor community.

Thank you very much.

Well I had said that.

Thank you Ms. overdose.

Good morning.

Welcome to Credicorp School in British School.

We sold.

So to be tolls on Twitter.

Since our previous conference call Equaling 19 funding costs continue to rank hobbled worldwide.

So it seems to be names, we got really cool.

Well the 19, we call it.

Yeah. We then you called them yet she wants it really doing but it's important to tell some clean <unk> economic activity and 41 thing yielded a.

He may decline there between the same yield.

Oh I see adjust it can fluctuate my 120, plus saying, yeah, it'll give you enjoy.

Nonetheless already deal I couldn't on congratulations first electricity demand has begun to reduce that I'm glad you every corner last week the monthly click the only be corporates and decreasing year over year comes not only a 131% yielded yoki the was weeks.

Equally let me circle.

Oh, what aggregate did we seem to take which includes a touch with double digit household consumption, possibly colder 77% Groupon then Nick level.

So.

In closing, making dictate goes you too late to notably in the second quarter it'll be doesn't play I'm glad you, Okay, Hi people know me.

Legal metropolitan email, which used to do that not cheap in doing well you know you know what opinion GDP figures wasn't good walk through 2022 shows significantly compared to the table walk through how something.

You look down when a society, we see each to be pulled a lot watch the warrants appears to be behind what GDP.

Next slide please.

The cooling, calling because we think they can only show no wouldn't let us look year over year can talk to demonstrate.

[laughter] weekly reports.

Workable their club exponential decline [laughter] worked up awarded the May weak available data suggest that you'd be make on slot between living up to.

Okay great.

Well 2021, we expect.

That GDP to rebound between 6% on 10% under 15, it might be called no big issues adult.

In terms of school do you still see should reduce the high use we bounce and a week, leaving by large just keep it going on because even in this program, which was saying Oh, 156% of GDP.

You know what last conference call people know nicknames shows.

The sense is approximately 21 thing you eat them additional nations husband out most of which goes well make another big reputation.

The most recent economic measures include a one topic Goldman pain is simple our employment program.

We were saying, it's almost one single GDP importantly, the program he used to create long one.

How do you all the short term.

Mission the Golden plan was still less than colleges, who the golden into Gordon scheme that was used for Lima screen not a 29.

And then maybe some games, it's Keith will be used to work on something north of the country to drive basement, Oh, just because you can't say.

All of these investments are we willing to say the importance of GDP Boulder.

Well that makes you'll see our last conference call include the limitation, but we think will be shown program that Chuck did you buy sports so quite a.

This includes five leases <unk>.

Each treatment by being sold it for me it's working.

[laughter] really.

Overeat Latin America watch 2021, due to Boston for young men implemented and be consistent strong macroeconomic fundamentals.

Nick it's like <unk>.

The conclusion economic reactivation, usually like to the recovery of the financials. Please.

Actually has got great on baby caught syndicate couldn't seasonable situation. There is also equally last night, but if I'm not sure thing I'm not.

These trends to continue in coming months. Additionally, there I know these things quickly hi duty.

Do you see highly <unk> husband, leaving among other factors bite implementation.

He loved <unk> program, which he schooling leap.

This call one can see two phases baby billion solid each to call like working topic, along with government backed Darren cheap on liquidity provided by the central.

The liquidity has essentially been school in Oh by the banking sector. Currently stands how lumpy 20 billion. So what are the liquids indicate to us to got lots, we'd be doing sold it normally at times.

Keep up who program how supported private loans and that's what you took a long. So these segment grew a 113% year older units, we used goods react keep alone role drops to home corporate say yield it essentially buckets.

Right so loans increased alone.

Same in 2020.

We will buy just react teed up because we.

Nick It's light.

Okay.

Despite these triton time.

Our priorities Whitney change.

I, leaving organization, we are committed to protecting and supporting all all what its stake holders.

Regarding our employees, we opt for lightly.

It was on the poor maybe goldrush <unk> gene related illness.

The branch living we continue to pick who pays for itself and how to balance the well not indicate doors.

Good morning to assess loan portfolio management sales finally, Nike licensing <unk> onshore simple you are working remotely we continue to do so I'd he couldn't Ukraine.

You remain high yielding dispute.

I want <unk> useful value you know what cloudy financial doors, we offer medium term solutions is talk to that program you I'm going to change. The tool you will help you need cloudy boosted by offering now called Tyson well, what's the thought of Chinese coal Biden <unk> business education.

Platforms. In addition, both but you could go in short I'm glad you.

Being 1% to 100% called <unk> core Colby 19th related fields.

We want to ensure business continuity in diesel rapidly changing it's not because of impossible things do they could meet and then well more than 5000 employees, who help I just need to go by thin film therapy.

Oh, <unk> I didn't security, Michelle and I both still.

And that's me little Chuck.

Finally, we actively might nationally we sold in due course up slowly.

The financial condition, so I'll, let be.

Excuse me before he took some laterals I mean, a there is some closing we align well you confirmed that fleet.

I think here well.

Okay. Thank you.

Our commitment to community support you some wavering, we've all read each student donations got up to BCP, you'll mushroom okapi definitely I want to help go by the business works in close coordination.

These three hum join in Sixtyl White airport to pull buy lots of raised up utilization 74, Colby 19 patients, we've probably got a quote.

Finally in addition to the 135 million quality information collected by the you'll Miss what kind of being less work there what do you see sequence Brady called a copy that couldn't treated coordinate wholly worker, we our health he's thing with medical.

Makes sense like.

In this context, we have adopted was remarkable let GB lived there right or what is a big Bdcs <unk>, yeah silly Richard Goodman, what do you still services.

<unk> already be viewed to be flat, you reach 50% or 4.3 medium class 1.7 million volumes more than being more last year.

School reading my yen <unk> sales since inception.

In terms so do you.

The Chinese that's posted the highest Google was yuppie mobile.

Do we see between we do you sort of Mark on the young pedals, meaning transports doing good question. Paul 985 million sold is compared 180 million sold is the same board last.

The multifamily we see me deal.

Got it sounds like you said a month, so actually doable in comparison to last year.

We are about to launch a new bearish on Oh, what mortgage banking up Oh change the best truck Rocky comes on something like no <unk> do you might be USIS <unk>.

With regard to be done deals they Sheryl you know Simpson.

<unk> savings accounts grew considerably year over year, writing totaling 2.7% 2018 to 42.3 for the same into concentrate.

Do you see me.

Go live a rush these trying to boot do you feel adoption I'm financially.

Hoffman's leasable to me.

Train 2100 agents BBB could you paid claims about yappy or more.

Our goal.

Each 1 million client, who beast apartment agents by yearend.

In in two or something.

Oh, what ops unclog important hostage to tout the big names on the plane question on the request, we mostly a quick subset of the do you suppose time touching the students 60 or 91% perspective.

Finally, I'd be done.

Hi for saying, Oh, what lot more I'd use more a more light up the provides online on system core Mitchell imply.

They see lumpy sportsmen I know that much these boots ideally improves the claim experience I know you might allow bicycling cheap.

The change in between.

Oh, what do you sort of East group that I'll watch on formation with strategic it's moving to write the ratio go Hartman split age from pool and crucial accruals business segments.

No it's lightspeed.

[noise] going on to our second quarter 2000 twin financial highlights you, we see that we maybe that's our balance sheet plan, what Mike teaming up on said about people approach. These things. We're obviously compromise the Swiss holds but we've got lots fluctuate.

Most of the buckets the crazy by year end.

I would like to highlight or what loan portfolio I suppose if they are going on that.

More than 21% Ptwenty five could change year over year, great respect.

Leaving mainly by going from the Golden and belief programs, we aktiv comply.

Isolate indeed take these programs Grady cooks is to talk to a loan portfolio grew 7.7 thing.

The coal read what highly active this quarter and tweak it up 7.76 for claim often called one looking for at least from what.

You know more challenging macroeconomic outlook due to colder than 18, I'm not beach, where made two they throw lobbies hope the causing each sick.

Our <unk> ratios cool to see tweet ABT, 167.5% backed by a sluggish copies debate, we have prepared to place well things had a negative outcomes from these quite.

Oh, I mean tweeted about 4.3% this quarter you too.

Which we will explain in D. paid later.

Eats we exclude extraordinary charges and the government program actually aktiv off by the structural and means between <unk> point 80 acre, saying before.

The decrease in transactional activity.

Well I'm time makes me feel like that people, but was partially offset by gains indeed listening for <unk>.

Finally, the contraction anymore outpaced the reduction in expenses, which were 2.6% lower than worked a lot here in this context Grady core posted a loss of 620 million sold it before which represents a return on but it would be well minus thing going.

Okay I will now explain the was sold all our main operating you it.

Next slide please.

Oh, I will just have to spleen, bcps, how long or to be muscles.

The loan portfolio and pull seems to be has been growing [laughter] based on the bank.

You don't rule was mainly driven by forgot people don't the Golden quote on loans will be talking supporting our existing on new clients like these bookings more than 40, but staying the course, maybe be a solid yeah. You watch these portfolio, it's mainly concentrated in Mississippi me if need be a middle market say.

Yes.

Regarding the year over year <unk> <unk>.

Well, you posted 18.6% growth now that us.

Daily Butler.

Maybe I missed any P. grew 30.61 thing, which 90 person wants we would have looked at me actually belongs like wholesale loans increased 21, once we put a swing year over year breathing bias for loans to corporate at play here.

If we isolate CLIA Eva phase.

They're struggling portfolio boot fame <unk>, 4% year over year.

Inc. second quarter 2020 opens in policy grew 9% worked over what the driven mainly by Google go what cost at Pos.

Click totally depends on how your calls time deposits.

I think one time coarsely I mean, youre paying British liquidity Chrome, where do you alone which was the Queen fleet retained in basketball.

Right. So how could wages at post April dot com retain fun saving accounts, reflecting a construction consumption.

Regarding the year over year evolution.

<unk> 26, starting late late like knowing towards doing that Monday posted some saving deposits, which grew 67% on 32% respectively.

[laughter] slides please.

Okay.

Now I would call me on the initiatives that we have being implemented the madness you stand alone local.

In retail banking, we can do that started this is a need peanut who understand being bought coordinate gee how can that be.

We have provided I see such items I'm pleased to make it keeps the June I'm most recent.

Okay, maybe it's truck corporate programming that form for medium term solution.

So we take portfolio, where for example flight <unk> show.

Chose the composition of <unk> portfolio, so you'll like 27.

Sitting 1% of there'll be paid banking portfolio up to date.

Corporate center, the secret reprogramming he to the equal weight corporate thing you sold as you know reprogramming portion of a peaceful affordable which accounted for five 8%.

During the first wave Matson <unk> pardon me, if you can see 24% equal weight drilling tools, they need peanut booked for the most impacted given up 54% over the course for you eat up to date I'm, 40%, It's where program.

No I like Hainan performance <unk> portfolio.

Do we see <unk> I'm, sorry activation in every segment.

The second fashion over the portfolio that you hate each month Gleeson well they like for the same me to 88% in July.

Holds all these payments for four months Dot. These encouraging you'll also see does it better things I feel they told US what causes that you saw that you each month reasonable one person may six percentage. If this is Steve to everybody to reach food borne completion home portfolio help even does somebody programming, let's see.

<unk> not geared to do you.

In the wholesale business, we are managing long well in that case by case basis, 20% over the whole simple for you eat associated with the economics that dose.

Hi, this bodes due to cold chain crisis.

[noise] [laughter] flybys.

The buffer the fixed so we have yeah, hi, ward wasn't who can probably shows not comp, that's where I want to stick visual cortical instruction GDP has deteriorated in the second quarter two tolson tree on we dated that pro lobbied <unk> <unk> or <unk> segments based on.

Assessments for obesity is how to mainly concentrated in being BBW unique I like the we did book.

Well vishal seem calls her banking associated with CP CLI, how high you schools equaling 19 quite.

These are not completions have BCP increased by 79.3 for instead of four to report there like hundred 10.7% year olds.

We slipped twist truck for coal sublease of 7.9% to 9% for the quarter and he sporting Thinkgeek are saying, yes to the.

Regarding asset quality empirical just structurally lump workforces to write a check learning.

Individual segment, even the claims where delinquent prior to the lump that well no is eligible for reprogramming, let's see.

Were sold our NPL coverage ratio reached a quick Ohio, and you tweaked it 160.3 per se.

Accumulative, Felicia, representing six point exporter claims well the structural portfolio.

Makes sense blight. Please.

Going to BCP was called [laughter].

[laughter] me, what's impacted by seven o'clock for two extraordinary Fokko suite invite people solution with our loan portfolio in the colder 19, but a one no impairment charge associated we'd be something policing <unk> over <unk> on a negative mix of.

Which was generated by incorporating breakout.

Well no. We've made you who will mean levels. Additionally, the wholesale portfolio grew faster than that we did for <unk>.

Regarding the one okay government taught in April and May we also favorably to the weight loss to find them up to two posing spot.

These types of long I already snine requires us to greet calculate the girls covering amount I recognize a modification.

Yes, one no charge for 150.7 million book called it a BCP reversing imperato deeper than that we've got more high school that they'll be mining town of discoveries that it's great to see.

[noise] did these schools or 14.2 billion sold is for the very active up program before we make <unk> means generated an additional downward pressure.

If we exclude ball, but they tell me talk South Korea, Kiva B pieces to talk to.

Great.

Four point, 34%.

The increasingly queasy you go into its weight book cooling.

Also drives me dot work.

The reduction in cost of funds white meat pick that did not offset bulk mansion pockets.

In terms of no I'm not sure legal core I once constructed 31% worked at all or work, which reflect responsible locked out the temporarily you all her to client on any greasing be useful cost we'd be a child.

Especially I've seen sports that possibly bristled drilling maybe bionics function in the mid gains on securities.

Patients, who Rachel simulation yoga, yet, which was attributable to next probably now reconstruction, meaning expenses were 9% lower than those in the central important luckier, we got job equal quarterly one off from Thurman Charles <unk> <unk> situation. He created a 39.9 for Syn <unk>.

Moving 20 basis points year over there.

Next slide.

[noise] with regard to Microplane floors, we wish we view that I know I mean I'm cool.

The bankers, who don't go before there was mainly attributable to go women's <unk> program I P me I'm really I feel good.

7.9, 30 year old wouldn't get real make sure not but after that you bought or [laughter] scoopable to read programming I see in this trunk covered loan portfolio.

The first phase Sofia Youve alone Westport <unk>.

Which leads me to move on PC page number let me bundle has being awarded I guess shuttle long cycle. They something that you got pro rata July.

So it may take on trucks filling this truck for example holds up your Duncan couldn't below the micro finance these things other fish.

Next slide please.

Ivankoe portfolio constitute critical most exposed for corn.

We have engaged with Michael Finance flat I'm Gonna do how to do slow they knew we let them off the pro lighting keep sense, that's [laughter] recent solutions.

More recently, we offer mainly a structural that way program medium term solution Mibancos portfolio reprogramming five if you go to show the composition of the loan portfolio by the end of July 31% of the portfolio today [laughter] Corporately, we wouldn't be horse everything I mean I see.

Corporate claims until they view the reprogram portion of these portfolio, which accounted for 82% M- Hutton need because you could see corporate things in July now I'm not liking to paint <unk> fourth quarter you you each month, we see <unk>.

The same special for well you have to be paid increased from 52% in may 91% be do lot moral.

But the same industrial he told me books or what would use there I was hoping you each month decrease from 17% in May two people in Fyfourteen wherever you seem to every two pounds.

Placement will help you Banca <unk>.

We expect to have a better understanding of Greece.

Before you always in September when most of the long stuff, where every program called you we'd be property effect.

[laughter] townsell our portfolio what.

Just talked about in theater ratio increased 160 basis points year over year to reach 8.1 thing in this quarter due to client vertical Remy delays that took place in July were classified but you do it.

It'll be shells late because all faced increased 11% point on T. trade.

Hi, <unk> 15.1 with that growth will be show, what really by be done what changing the deep Yahoo, I'm buying an update to the pro lobbies, you'll always Halloween isn't itself reasonable.

Sequentially you bundle in <unk> coverage ratio decreased 44% points year over year to tweak up 100 point reports.

Next slide please.

Now we would talk about me bundles for.

I mean.

I'd like to is probably not as possible.

A one all chops relate to couldn't reaching a TV Keith Volcker compliant and then they got paid which one generated by incorporating five three like Youve alone, which means that maybe.

The one off he talks in this case called Dot 188 million hold with we're saying we temporarily anything that we'd be up more time over there will be mining town. Several you sort of swayed C.

Second the disbursement launch for the pie.

Do you <unk> government programs work that we had a negligible me getting it right additional downward pressure on.

If we exclude booking.

The permanent trucks on the victim Goberman pro rata beneath the bottom courts tripper portfolio.

Great up 14.2 buckets.

The deterioration you said you've done was mainly driven by income construction adjusting informed by the one okay permanent trucks efficiency she Kuwait.

The second one threepar claims compared with 40, 54.1% luckier deterioration you'd have to people tool to revenue due to the decreasing midstream twisting can explain exactly on what trop no I'm not sure legal which was associated with that talking <unk> Corpbanca short on board.

Operating expenses were down 6.4 claim you a little bit yet do you think like implementation cost saving progress.

Next slide please.

[laughter].

No.

Calming undergo souls related well and Sheila I think Jones Beach.

This quarter.

Group He goes and the team coating grew year over year. These was mainly driven by green dot the right. So for the property and casualty business. After a drop in mid clean due to the locked down which was pretty good.

Yeah, well see the influx in public on classical that offset the we're supposed to look like.

Net earned premiums Becuase me Clang, what do you think name, but the evolution of the crazy like for all of which was affected by decreasing seems to bancassurance and be alliances chime in on by yet increasing net claims you too cold chain I see sequel hurdle that Tony Capitala called <unk> ratio increased from one.

Im point.

Seven to 1.35 quarter over quarter, which was attributable to decreased in copies of required.

Due to lower claims.

In terms of occasional funds. These net income goes you twin creeks <unk> you got me you. If there were so well in line, we did markets partially be called.

These all 50 decreasing Pete.

Assets under management can you hold it again, despite the latter shortly corollary market price. This decrease was not agree with how long do pull them and make sure to allow.

He leads to drill down their financial.

I Hope you like for instance, there [laughter] hop on truck by 7.5 billion sold by reach what percent around 70% football concept, where bailiff work, where we troughs.

Finally congressional commission, we should be there about lake banking system before currency you still we'd be sequel to predict how these will impact our business.

[laughter] flight please.

Regarding our investment banking on what might be.

Hello.

Hello.

We know there team, 0.8% worked at all but one that what my much growth. So she'll see with new money why you anymore. It's not national Basic me [laughter] punch from nothing under the much me what was even by growth in traditional onboard yes, hi, your assets under management both businesses were also.

We would go to mark to market. It take in language, there were quoting brought to market and to exchange rates depots.

[noise] regarding income contribution.

The cooling business grew more than 42% worked or what what why including didn't know cooling business. This quarter girls heat treat it like 92% worked over at work no record income less triple towards one IPO hope you're talking a bit.

Which led to an unrealized gain or 96 million salts.

<unk> increased this quarter was mainly relating to the recorded a little bit copies on market.

In line with the recovery in glaucoma.

The increase in INBONE, it's mainly due to trading position, even credicorp copy that you got the show the coffee touting business portfolio, both local and national be equal from HSBC or sold to use that policy for <unk>.

Next slide please.

Now I will summarize credicorp consolidated for.

The loan portfolio grew 21 point corporate saying yogurt.

30, and bought school was primarily boosted by loans on the gold and then if we isolate it takes a few so this talk to other loan portfolio grew 7.7% year over year.

Well, there and but.

He novitas they do but on the portfolio grew 16.8, but saying yoga year. The structurally loan book yields rose, 9.8%, mainly driven by you and its pike incorporate disbursements.

In terms of funding deposit funded 20, probably even for send year over year, primarily due to expansion in the month of saving that policy, which grew 3.8, 30.5% respectively, mainly a BCP it's important to mention the BCBS no interest feeling the Atlantic coast or what.

Lisa dispensing funding source accounted for 69 for the same company in Greece in total deposits. Finally close of funding grew 42.8%, which was mainly attributable to build into as possible condescend Tri band for reactive up broke.

Next is like.

Going on twice its quite you can but let me summarize the dilution of the main indicators, we reaffirmed our local.

We are looking to upsell the close of the quite [laughter] <unk>.

We are there more forward, what Lucas Felicia this quarter to gradually democracy economy casino.

A lot of easy to use it for following internally.

This conference.

At any cost Oh, we see traded a saving points, 66% in the second quarter of 5.85% year to date.

It adjusting for government program, the structural costs will be treated at 8.4% to 1% well the quarter and six point, 48% year to date, we sixtyl additional expenses or blown doses to drop in coming quarters like to remain a little higher than dosing pre funding.

Oh by the structural <unk> ratio deteriorated, which was mainly driven by didn't give you all clients that we pay but nonetheless, our cold enough ratio increased year over year to seed trait.

107 point 52.

Committee caused me to us Muslim Dysport, <unk>, 4.03% need Bcps kinda along that you've got cool was negatively impacted by two extraordinary plot goals, which went isolated with soldiers on the struggling mean fourpoint, 88%. This quarter in terms of if you have to they see goes.

It's trunk club evening reach pool, 5.1%.

Finally, we suggested mean seatwave minus 1.92% the sport.

Next slide please.

Moving on to know essentially.

<unk> net gains on yeah. Thanks, Sean collections, driven by a significant degrees and stuff national activity was partially offset by was sold to mitigate going securities in discount.

I don't I'm actually going assigned to explore the same quarter work work.

Yeah, I mean, no need to gain and they've transactions decreased 33.8% pinpoint seek sports thing work over the quarter perspective.

Paul mainly a b C. P. S. I know I'm, mainly due to an increase in transactional activity.

Decreasing net gain so for Q3.

332.6 quarter same quarter over quarter, it's mainly relate to because if we called it a lot buckets I'm not fenofibrate Q in equal nice seeks needle unsold isn't the trading portfolio age.

In terms of accretion.

The cost to income ratio Seatwave 50.1 person, if we adjust Eagle Ford the one okay government trucks this quarter, the adjusted efficiency ratio see tweak it.

45.9 thing you do sport.

The deterioration 280 basis point was mainly driven by decreasing or breaking equal at me about DCP. Additionally efficiency ratio for that Michael finest line also deteriorated their expenses for Banco de where consolidate.

Right.

Deficiency ratio for our insurance pension fund businesses also deteriorated due to what degree theme in the short term, we coffee police body of work compensation Oh, he might be useful.

We are facing employees who are ya.

Our working at full capacity and continue to invest indeed, a buddy.

I see you're reaching war multi about yup, yet, but they do patient you Chuck cooling drivers so control.

Next slide please.

I want to something that liquidity allow us to take the nashvilles needed that rapidly evolving it cannot.

We have everything show up 1 million club. This crisis is strong with a focus on recall that beat.

Hey, Bill Lucia <unk> AG was primarily because of the distribution will be there this year given that I've realized losses from the first walk that easier.

Already being the Colbert.

Our common equity tier one leverage for both BCP young about remain full there already.

She tweak it up 11.2 inch to.

18.3% perspective.

Oh Accordingly, if you want ratios calculated under <unk> GAAP property I.

No touch you need in computers locally.

We ended up it was not miss it started to pull it out the C show a slow kinda I've always needing books he goes how cold with the embarrassing but.

But even that im radically different topic really lucky that were in the vitamin we want to draw your attention to the spot.

Regarding liquidity.

We should $500 million senior 2.75% note, we try to you in 2025, I see conservative nature going to be a buffer for managing the cool and situation mobile.

<unk> My things, where you left totally queasy quota equation aware level.

The limits of 400 for the same week eight rig will that Toby MCR <unk> 207 for the same but yes, you walk on 57 thing.

You know look what we see <unk> perspective.

The applies concern about the DCP called he's done quickly east Regal approach to be smashed.

[laughter] nation.

My husband decisions are made with most of streaming be paid cook relying on liquidity coverage ratio for 15 billion 60 day, who's a standalone I like Weve basal tree.

Next slide please <unk>.

<unk> exactly like you know what long term performance seem to think Eurs Credicorp Haslam systems to grow mid teen growth [laughter] I'll go great team won 2% went up all the 3.6% growth reduced that are for ILUVIEN GDP. During the same period. This is evidenced that created.

Well its exposed to commodities trends in the long term.

They diversity and strength of credit quotas that I know businesses have translated into consistently.

Hold accruals, the putting phenomics hot it's Oh, we're proceeding track record is backed by the strength of our business I know what relationship with class. The current situation is no exception.

Yeah. This is.

Assuming it's easy Globe, you know our number of club.

Elevated levels club truck show by young databases broken out the policy state.

[laughter] celebration when they might be stable customer satisfaction across trust, we especially koguryo incoming bought.

We're trying to action limits will embrace the calling them you'll.

Next slide please.

By uncertainty we are competing that we have a link to commit team we need to adopt our organization not changing environment and drive our long term has tried to be.

Regarding our commercial initiatives, we are focused on managing the most folks like me for our loan portfolio adjustment <unk> management and make sure I mean, they made it difficult truck loading in Egypt.

We also get stuck with a lot sales.

By Liberace dynamic pricing that you in both our clients on the sports to work well get adoption for digital that truck.

We continue to decline or what you'll see wasting bolt on how could it be probably specific opportunities to optimize operations such as fighting a war for Green coffee branch living we allow you much more remote war, which triggered a flexible GDP on accretion.

Even quarter searches, we have suspended guy, but I would like to make some t. that mountain we foresee in the short tend to provide a more comprehensive outlook for the short term results for away. He may suggest that GDP make on track between 11% competing for thing into tell something.

We foresee continuous racial meaningful wide, we deployed to take on Facebook react Eva.

The liquidity portfolio, we said, we couldn't raise and we've heard from BC you repaid at me about 40 nature level to print on.

<unk> to bring Monday me, let us.

I'm being called the cooler in line with economic reactivation third.

Regarding completions, you know what basis not one good can koby show Stan.

On top 2020, <unk> decrease in comparison to those.

First talk of the year. Finally, we will continue our workforce to control expenses, how about you Michael for rich in terms of copy Doug with spectrum I think topic debate.

We did come in about a one old I would like to open the Q on it.

Oh.

Thank you Sir.

Thank you wouldn't like to ask a question pre signals they pressing star one on your telephone keypad, if you're using speakerphone. Please make sure your mute function. It's turned off to allow your signal to retract that night.

Again press Star one to ask your question.

<unk> for just a moment hello, everyone the opportunity to signal for question.

As we pause we also ask that you. Please only ask of one question at a time. After each question has been addressed by your speakers. You will then be allowed to ask as many phone or let me hand, but again. Please only ask one question at a time. Thank you.

We will go to our first question that comes from Ernesto.

Window of Bank of America. Please go ahead.

Hi, Good morning says file warfare, I'd write off Frankel and good morning, everyone.

Thank you for your opportunity on for your detailed presentation.

My first question on its own I'm, probably from Charles just Joseph mentioning that person to insurance.

Reinsurance should normalize in the next waters, so be reasonable to assume brophy chunks normalizing for the 11 stuff, we're showing the second half of my.

I think.

Or more to the level that we saw during that first quarter. Since you forgot that will be my first question and then I will.

My other questions. Thank you.

Right now, though you'll take these you think this yeah.

All right when they're still.

Well we are just for has mentioned we've done an important liberal or furbish, what's your window for example, the year, especially the second quarter.

In terms of your questions or the circling semester, we just for a lower level operations than what we've done in the first semester.

Having said that are you.

At this time, we wouldn't expect to be I've screwed up watching a lot separate sort of.

For all the previous year.

We.

I have some indicators that the performance of the portfolio.

Might be improving so at this stage so different.

Quite difficult to give you a precise a precise estimate although there were over Richardson bucket.

[noise], Okay understood and then you mentioned that [noise].

Oh say loan portfolio, there's around when you personally projects for sure.

And that around 5% of the provision charges that you have created well located to lease exposure. So after evaluating all your portfolio, where you would have made an important fourq, namely read a lot of 10 minutes Hermes.

Well, you're paying higher provision charges could come from wholesale portfolio.

No I would say that anything specific there we've done a was born or not.

Every specific line.

Are we seeing policy to use a result in the last weeks in terms, so Uh huh.

Well the level payments. They were there were offering so we don't take Oh, it's an important charge in wholesale banking for reasons for that following the launch.

Perfect. Thank you and then my last question eat some political and regulatory outlook.

We have seen a lot of changes.

Hey, Matt, let someone U.S., especially I shall elections.

And then we anyway you can do its potential banking deal that was trying to person I mean thrust amounts Cup. So can you provide us some details on what are the last topic on their polysilicon on regulatory firms as well as if we get all well essentially a bunch. Thank you.

[laughter].

[laughter].

[laughter].

We didn't symbol.

Yes.

Yeah.

Yes, Sir perhaps your your next meeting.

Yes, we can hear you probably can you hear me.

Okay great.

The other thing regarding that.

Illegal mothers.

[laughter] I will also work now, especially in Congo.

Sure.

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Well paying show legislation.

Yes.

But the idea.

If I take the overall the lives we had no over time I do believe box a good guy that Congress I.

I just started dating back basically the bids from nurseries.

On the on on the banking.

Well done.

Especially of the microphone.

Which is even though most vulnerable.

That being the whole she'll take them I love you still get caught them.

So I'll just be Doug greed initiative.

Was it.

So is there the that's why did the truth, creating like I say specific commission.

We will be all do they really like stake holders regard the yard and there's really from how do I do.

Well why more facilities to do that those.

That does produce that's the study its and colleges and others.

No.

Got it okay.

Yes, actually yes. It has been appointed I would say the structural because it is quite to New York or what do I, probably the biggest got so yeah, Paul said they've got the bid.

So I told no shows that are being taken.

Yeah, it's still going forward.

Thank you.

Our next question that comes from Seattle, but keep that went to U.S. <unk>. Please go ahead.

Yeah kind of [laughter], which is a funny yes.

I have one question about the marketing.

You are the mentioned that the deneen should contract to <unk>.

But I went to double check you think experiment is you know facilities that you book is in effect when acute do usually not repeated do not to happen again into the queue and also if you believe that they're not yeah. I mean in solace terms not in marketing can return to the level are often rescue.

In if they didn't the nephews you said your normal off in <unk> or a if the second acute used in your normal off of <unk>.

Okay.

No.

Probably I would like to review the compensation almost emerging flora every <unk> company in terms of loans, we have being impacted for these a onetime event under resold if they launch is starting to pay a core interest can you said you are going to help every bit of some of these.

Initial troche already has been happening in the name of June because most of the bank has been reduced during may and we ought to start into reserves. A these initial probation under the current circumstances deceased one on ebay when no one no payment.

Dan rather than a factor in the loan portfolio.

<unk> thinking about no margins, but totality income he's the composition of the loan book for some months, we have being a very focused on restructuring the reprogramming loans.

And it offering reactive approach to our clients and due to the changing decreased from five before do you need thing I know they slower pace than previously this dynamic is starting to change in July and gradually we ought to step into originate to reach the previously it was the packed into short term used up we are going to.

I'm not a small your portfolio in the retail park of BCB Ivankoe, because you haven't seen we are hobby very good levels of payments. So.

For some months, we're going to help more paintings amassed a new disbursements and overtime or look at the end of the year, we aren't going to bounce out at least affect the older dynamics that he's going to take a wedding boom in the short term is that received both the liquidity portfolio rates. We have for example.

Titles Central Bank 2.22, 0.5 to one type of thing that are coming due and bring all they did not rates that are much lower due to their decreasing the reference rate deceased going to impact at least floor.

One more quarter enough that we are going to stabilize piece parts of the portfolio in the expense side of the book that we are doing east resetting the coastal funds and at a very good pace, but we are going to hop on one no danger due to the issue in BCP.

Well, they yeah I knew it.

She will be needed loans, that's an important them all 850 me 50 billion dollar.

In which we have a change a bit.

Born stuff mature nicks and the following year.

For new ones with significantly lower interest rate, but we are going to reduce their on why not try to.

Due to the premium that we paid for the entire change, but coming down the road diesel is going to be a reduction in day cost of funds I would say that'd be sees the general dynamics that we ought to go into two seat in the coming quarters.

No very very clear stinks.

Our next question comes from Gabriela membrane Guy with Citigroup. Please go ahead [noise] [noise].

Hi.

Morning, and thank you.

I was actually like throughout my first question.

Regarding your refinements loan book can you maybe give them.

We have been more more color.

What is occurring.

Profire these CLI and I'm wondering though.

The laterals that they have or decline there were a maybe a pain for and also if you could explains what is how you or.

Accruing interest thank you.

But you put them using what specific portfolio excuse me.

[noise] sorry, the renegotiating Julio.

[noise] [noise] I didn't get doing and what specific portfolio.

Yeah.

On the renegotiating.

Oil, which robbins, you're doing okay, great stories.

Yes, I mean, we've been quite active you were in government, especially the freight does.

The first quarter over here in.

April and being.

Restructuring a lot of the loans both in U.S., we meet on.

On an individual alone.

I use union in their charge. These demand for further reprogramming has dropped quite dramatically, especially on the individual loans [laughter] I'm, we've seen still only bought them leveling the SMB market.

We have boats.

Launch with collaterals, I'm without called out or else, but that trends we've seen in terms of payments. So all of that Oh.

Well done all the amounts to do you in the end up in recent months I've been sort of pricing rather than we expected them to be more affected and regrets even further programs, which we haven't seen.

I would say.

We have both in in both segments. It's I mean, I mean, maybe the wells.

I would launch with and without collateral so I would say heats up for fair representation of our portfolio in in both segments.

Alright. Thank you I'm done that's for my second question looking better expenses, we saw on that you did some cost containment during the quarter, but.

I imagine that that they're in cope with a lot of required started using much more of your digital bank and also adding to this.

Such that you were already investing and you're right to talk for him I would like to understand there.

The remainder of.

The your if you still plan to continue on investing and you're right to platform or are you already starting to claims. So we're already starting to collect so efficiencies from your investment bankers.

I think we have to defend dynamics and be more traditionally fee income we have an impact due to decrease level TV a number of these collection on SAP related to transactional activity in most of the traditional chime in on US we as the economy could we opened we have.

Seymour Radiant optique eating in these really got.

Indicates what did you get out of China is corridor or what is tricky, we continue to invest and what we are going to get out of these is a much lower well pay reaching kohl's, though the wrong. So we continue to investing indeed channels that are going to provide us with a significant efficiencies down.

The wrote.

Thank you very much.

Thank you. Our next question comes from Yuri Fernandes with JP Morgan. Please go ahead.

Thank you gentlemen enough for the percent of making questions I have a I'm more mid long term question here regarding your arteries and I don't understand is every stuff and just kind of environment true to think what's going to happen each doesn't do anyone what's gonna have you spoken to any true.

But when do you expect I really used to go back to those 18 anything per cent Mark sustainable our Luis if that's the case.

And if you can comment that it'll be about the diluted impact okay people loans, because I understood that you have a lot of one offs on your margins this quarter, but most of those have people loans. They have like 36 months, a third and they should stay on your balance sheet for awhile. So my question is if anything like it calling me rebound even if they are.

At the color at cost of risk normalize themselves and 21.

I think what she did you see I always lower for longer term given you have like expression Oh heck fever.

Did you looked at in fact, when Youre on your margins for awhile. Thank you.

Well, we're not providing insight.

And as mentioned previously, but the dynamic that we see stuff we are going to have.

For a couple of years why they into this rate, especially low.

Reduced marketing, but we are working actively being efficiency to return to profitable level, it's down the road, but this is going to be on adjusting process because the immediate to think till the reducing interest rate you need to recover it right.

And it in terms of three I see balloons are we have a mentioned that Dave I mean, it picked up the reacting balloons east to reduce this truck sort of reasonable the.

The portfolio because provides krish companies.

To the client on things like DC, we are going to have decent on for three years, one year, we don't payment I know there the 13 months I grabbed won't be payment process. So in terms of need this is going to be honest structural.

It takes but in terms of the total amount of England Shoeless, probably life. Once we finish it did these sportsmen grosses a looting that like the third quarter.

Yeah, Bronco got to compliment what could walk.

Good for just mentioned.

Yeah.

Hello, [laughter] diagnostic who's got the main lever you know that's to return to do.

Well the ruble well, we've always bold move how how that they'll do show a call woakes.

I do believe it or the impact on margins because we'll bring you up.

Sure not matched by the deduction Oh, so that you should.

She wrote some good the de lever here and how to manage divisions.

The underlying this is why would be so.

Nobody I don't hold bought the that people call wed love to get a where although clients.

We didn't do a coherently you're no longer ambition of these relationships.

Okay. Thank you thank very much.

[noise]. Our next question comes from Tito Labarta with Goldman Sachs. Please go ahead.

Hi, Good morning, everyone. Thank you for the call I guess following up on provisions just to understand a little bit more yeah. How you came up with a level of provision that you book I mean, yeah, Yeah I understand your GDP, you could call anywhere between 10% to 15%, but you also expected strong recovery in 2020.

One.

Just to understand it gets a little bit Oh, the thought process or some of the analysis you did but behind the the provisioning levels like how much of this is just preventative and and being cautious because if we look I guess, how these regionally you have the highest cost of risk amongst most banks in Latin America Yep Yep.

Just to understand I guess is it because the the short term rates in Peru are very high given the level that cobot infection, but.

You also mentioned how much government stimulus X, 26% of GDP. So just understanding how much of this is it sort of a short term preventative measure.

And at how Oh I was how much do you are concerned about how much you're gonna have to eventually write off and what's going to become nonperforming just trying to get a little bit more color on how you came up with the level of provisions that that that you booked in the quarter and also considering you had very high level of provisions in the first quarter. Thank you.

Yes people think your where your question basically be where we've done this quarter. If we were mixed two approaches or the one we do it into the first quarter, which was basically a macro level approach dropped down to graduates you made the impact that the changes in GDP would have been in our portfolio.

There has been Oh further devaluation on their expectations of the GDP growth I mean are dropping before the year. So desktops Griffin you had an impact on what do we speak what happened on the fall winter months.

In this quarter, we have to complement the data analysis with the.

Bottom up approach, but which we have I was actually started mentioned server unimportant [noise].

Part of our clients specifically in its employees and indeed, we don't clients as well Oh.

Most important wholesale clients to try to <unk> to estimate the impact that congrats <unk> might have on on the portfolio.

We have also included some.

Some demographics hmm demographic information economic sectors to see the different in fact, they probably touch it how proud on these economic sectors in independently and also some early warning systems does make sure changing the level of deposits entering the level of debt or changing the Jewish.

<unk> or their kids, especially disgraced likes.

Altogether, that's given us I I would say a good estimate I've talked to they open up recently required by the end of both but first semester of Goodyear.

Hi, I'm, having said that I mean, I forgot that key information that we were required to how about more precise number in the following months is the level of payments.

We wouldn't see endeavor, we broke ground and part of our portfolio.

The first indicators are very positive you have seen but there's still an important I'm sure of both of our portfolio that will come to you in this quarter on the Inc. fourth quarter over here.

By year end would probably have more precise estimate leveled off where we should be doing work on the level of an impact that would have on nonperforming loans.

Okay. Thank you that's helpful. Maybe just to follow up a little bit there I guess based on what you're seeing elite initially so far and what you've done a I know you said provisions should be lower than the first half of a year, but even that kinda give just a very wide range. I mean, do you think it could be even lower than the first quarter.

Or where the cost it was <unk> four and a half like even that was a bit elevated so we see to go somewhere between where you were in in 2019 and with the first half was or it's just relatively to the relative to the first half a year, where the cost of risk on averages around 6% right. There's only because of the wide range is trying to see if we can narrow it down a little bit in.

In terms of how you think based on what you've seen so far I leave it is that level of pervasive can go too.

Yes.

One thing we need to do is doomed incorporating analyses.

Number one submission was named backlog direct your programs.

Programming airports that I have done two real portfolio internal Germans are I would say it would be.

Broadly around.

We've done in in the first semester, but there are a lot of uncertainty is stealing on on that number.

Okay. That's also a round.

And yeah, one of the first part and I'm wondering I don't know first I missed the first part numbers on its own it.

Around 4.5% crossed the rent you know given what you're seeing today is at least in the short term sort of a reasonable sort of assessment you think.

Oh, yes, when information we have today, it's probably a fair assessment there.

Okay perfect. That's very helpful. Thank you very much.

Sure.

Our next Gen. Next question, it's coming from Jorge Kuri with Morgan Stanley. Please go ahead.

Hi, good morning, everyone. Thanks for all of her commentary around.

Delinquency and provision I actually just have.

Another one on that same topic.

I I, maybe it's similar to previous question, but I see differently.

Yeah.

If you respected law small, though a that's driving your provision.

[noise] prohibitions on you have on the room for either being able to lower provisions or or the other way around that's my first question of things.

Yes.

I would rather.

Give you back I mean.

We have different inspected laws for the different portfolios definitely our main concern.

Market.

Cause you just don't want that has the most impacted and where will you have seen the highest level of reprogramming.

I wouldn't like.

Great I mean to provide you a general number of a a stricter laws.

Pick up lozenges in terms of N P L.

Probably like to work a number and get back to Ya.

So I'm sorry.

<unk> I'm not sure I understood your question.

Your ass or I'm sorry.

No I mean.

At this time and usually we don't provide.

I mean, just numbers on on on on a forecast basis I am not able to provide you.

What our NPL levels and inspected for for that second half a year.

Alright.

Ah Okay.

May I ask something that is probably a bit more under your control unexplained Kurt.

<unk>.

We've seen most banks in the region.

Right, so trying to be a cigarette T. A as possible alone managing expenses to offset some of the topline challenges what what is the commitment of the consolidated.

Bank, the the especially if I'd ask you a a plumber in terms of expense girls for for these year next year.

Yeah.

So maybe maybe a I'm sorry your question.

I would think two stages so.

Maybe for the.

Three four months.

<unk>.

Focusing inexpensive school procassini.

<unk> 12, I'll, probably use a hell of a classical most do you.

Buffy and.

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The C V V nuclear minds really television but.

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No onions, and the economy.

I would say like three.

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C.

In your bank.

Buffy moved into work.

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Channels on T V but.

Second one yeah, which is.

The Gulf of dogs.

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Got it may take anything between takes to wait that long to know too goodbye.

<unk> excuse me, let them do what we did everybody.

E attacking all or.

Something.

Five years for them.

So so when you put it all together what what what do you think your expenses well not for a year basis, we'll grill or the client yeah I'm. The same question for 2021.

I'm just looking for I'm not really maybe.

Yeah sure I'm sure I'm 2024 quite difficult to answer a.

So.

<unk> <unk> <unk> <unk>.

Current account of her.

They work on degrees at 9%.

I would think that's your number.

But it's it's quite difficult to black people like those particular teller, I'm 2031 or ambition.

Burnt to a cluster at some level we have.

2019.

Okay. Thank you.

Next question comes from Jeffrey with economists. Please go ahead.

Hello, Thank you very much for taking the.

The question.

Can you give us a little bit more detail around your expectations for.

Gross from here, maybe kind of breaking it down into the and the retail component of the structural <unk> the wholesale and then the.

The government guaranteed reacts Eva portfolio a bit more detail on how you think each of those just going to grow.

[noise] Yep.

It's quite difficult to let me change too soon to answer that question.

<unk>.

A breakdown, what we're seeing I won't be literally like yellow emotionally before.

Okay.

But let me get.

Picking up so a lot of macromedia indicators.

Like <unk> energy distribution and also a microwave gatos debit cards usage amount it looks like there's a very fun.

For work on vacation.

Okay.

Especially with our customers.

A goat name of what the economy's <unk>.

I was going to perform.

I don't have after you. So we're talking to end up having said that.

<unk>.

We're still need the marriage.

Most of the for the for the that Watzke like College. So so we are trying to <unk>.

Yeah well between.

<unk> the full meal at the same time.

<unk> improving that quite a bit.

[noise] at least quality I'm Gonna put you find yourself so difficult to provide a specific number.

Let's go for the rest of the year the younger the question on there to that.

The first songs over here, which was 30 you belong as far as how close it.

God.

Margaret show.

Okay, well supported the Sun Ah.

Second second Planche, a bunch of suspicion is gonna be lower maybe.

Plenty per cent and some some per cent you have to bear in mind.

The second I'm trying to figure out maybe some jumping uncle, Michigan.

Yeah, that's more targeted for the micro find out.

For myself, so that like the financial conditions.

Alright.

Possibly due to their times.

Great. Thank you very much.

Hi next question is coming from Jason mine.

[noise] Bank. Please go ahead.

Hi, I have two questions somewhat follow ups I wanted to return to.

You're a banks Bcp's north stars for 2021.

[noise] talked about in the past extensively and the key objectives their number one in in customer experience.

[noise] costing calm ratio in the mid thirties.

A double the cross Sal.

B the number one an employee experience if you can give us an update and actually I would say I think on the digital side, you're probably moving very quickly, but if you can give us an update there and how this current kobe situation.

Has adjusted those North stars.

I think her house.

And then my second question [noise].

Also related can prevent.

[noise], where you talk about that case scenario matters provisions zero [noise].

[noise] 2020.

That.

Okay scenario, what happens if things go better than what what what would promote.

What would what would drive that and perhaps that their case scenario, how bad things could get thank you.

Okay.

The first question for your checking.

Made public or maybe a couple of years ago, yeah alcohol.

They're the same.

<unk>.

Some of them, we may not reach them all.

Mm bye thank everyone because.

What do you have just gone wrong with the prices.

So I can I mean, we strongly beneath got the three to provide the beds customer experience and to be the most efficiently and the market.

So that's that's it.

And the service is still the same again, maybe we will.

We can find.

Right.

What I would.

<unk>.

Changing it won't change maybe more.

Yeah.

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Here maybe Walter.

A little Beagle.

Call Boltel.

Okay.

The classic Coke.

Connected awesome.

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That needs to be.

Both of Blah blah.

If I live on top of D. C T and the baby I called I mean, we need to get more connected <unk> I was using like my phone out solve them by ourselves but.

Believe that.

We can play Ah Buttonville, we've got regarding those coupons. This clothing stay cold days that maybe one person you know they'll start with you before.

I would say.

I would think of a name.

Change that.

T.

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Sure thing.

Will be bathroom.

Another another with a big deal but.

But that's all I'm gonna be regarding the original time.

Yes [noise].

I would say.

The key he should that it's going on either provide us more pessimistic or ultimate Street view in terms of the original required for the second part of the year.

Is.

[noise] ability or the government bunkers, a horse to control that sanitary crawling [noise].

I mean.

We've seen in this and see and since the economy was starting to freedom some sexual starting to operate very positive numbers in in.

[noise] transactions and 11, a M. A D V D.

That they might not loans [noise].

Alrighty I mean, if we need.

Just a country another big locked down.

Locked down.

In all originally from the country, specifically really <unk> that was probably providers I'm more.

Blue Meanies or I'll go for what he keeps happening in the next week.

I would say that's cute regarding 2021.

I mean, we have election was on on April and Duck also Ah at G question <unk> in terms of what would happen for the cream or knock on Burger.

Thank you very much.

Sure.

Alright next <unk> kind of just trying to Saturday didn't please go ahead and.

[noise] yeah. Good afternoon, thanks for that [noise].

[noise] the first one.

You guys are speaking about the economy getting better gradually.

You also talking about how it <unk> program is getting fresh capital to the borrowers which is going to help them and then suddenly you also said that.

You know these <unk> basically reprogrammed alone that means you discard install my payments et cetera. So all this thing suggests to me.

Thank you should see an improvement and you know in a prison pass and the cost of risk.

Alright, I'm visiting level suggest that you actually seems opposites I'm having.

Trouble reconciling the statement that don't seem internally consistent to me. So my first question is how can you help me reconciled. These statements and you lost citizen closet with the Sky Rocketing.

Yeah.

That's it today weird.

Okay.

Would you say issues to be calls hall.

Well, there's a lot of evidence that'd be the economy's for my bedroom, Oh, let's say on on the micro fiber the worst it's over ambit energy both yeah.

No Tomatoes.

Oh boy type new types companies almost now of Vietnamese combatants also.

Great very welcome bolt Auburn Auburn.

There are some pickles.

Mm.

It's not just going on all the sexual problems, but.

General what I would trade the payments snow.

Yeah, how does it stopped.

For a button, which is very possibly on the on the.

[noise] lethal burrito from the first of all because.

Again, there has been a lot of me please E should affect the long term.

Stability of those people when she was a pension funds.

<unk>, how provided a lot of it will you be into the market <unk>, yes, they're like.

Pier one is that.

Yeah.

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One three <unk> the second order of root beer.

Which one coffee would be Pennsylvania.

There have been two or three mackerel.

Actually like the government that's hunting a positive feedback.

The old environment buttons quite difficult.

A French these that killed tomorrow, Unfortunately management of the shelves.

Ooh, how can how can being <unk>.

Complete poverty gave me ratio that you need them.

Compare.

[noise] well it sounds it from the world.

Uh huh among the worst performance.

Yeah.

Great well since soggy.

Hi, I'm a coffee to go forward.

Quite a few people too.

Goodbye.

Zero.

For the next couple of performance.

[noise] [noise], okay. So if I <unk>.

Yeah, that's what I'm going to do what I'm trying to them as I mentioned.

Oh I'm, sorry, we've mentioned you've seen some particular indicators in both macroeconomic numbers and specifically on their living in a famous two of our clients.

But do you see in one of the charged steal 25 per cent of that read though portfolio has required or some further reprogramming specifically.

G S M U market.

<unk> excuse on important sides of the Port 40, overdue, so dickie deci western theories how these [noise].

Fortunately portfolio, which is a fourth of course, let's total Rico Port, Florida is going to performing the following much. So that's what makes us.

I'm certain milkshakes exactly what the numbers would be in Florida that for <unk> for the next six months. So that's that's not the level of a confirmation of your payment.

[noise] ability in [noise].

In August September and.

Of the year would provide us unnecessary information to have a more precise number.

In in secondhand.

That's why we <unk>, we we we can.

<unk>.

They changed our perspective in terms of pepper original required or the port for Ya [noise].

Okay that is helpful. My second question has to do it with your name and you can specifically get funding court.

You talked about how central bank of through had cut interest rates must have professor B U R. As in healed, but it should also help you on the funding side.

The appointment.

So can you discuss I think you might have such a brief up into thoroughly but can you give them more comprehensive answering just walk through how quickly lounge reprise how quickly deposits replacement.

That's in that effective that given obviously.

The Princeton in your face from the next time alone.

[noise] per cent, but.

All in you know how seem to think about it they're fun because can you named.

Yes.

Probably going to live in the explanation that day.

[noise] previously talking about the funding cause we need to consider that we have already before the crisis a theory.

[noise] cheap hunting calls around 60 billion soulless BCP between saving accounts and current accounts that already we're paying close to see what they're saying. So you have a significant perfectly portfolio that's cannot improve even the new realities interest rates open market that'd be a keith.

Of course, we aren't repricing the additional pops of the put <unk> b a time that policy.

A short term handling yeah, I've made sure and also a the subordinated loans that Indiana site youth have a short time at almost I will see it almost immediately back from the liquidity portfolio [noise].

<unk>.

[noise] right close to the.

To the residents rate than putting adjusted theory coffee and deal with her in fact that I I mentioned previously what do they graduate readjustment of the loan portfolios that are starting to pay down badly origination for Sunday months, he's going to be.

Then the payments that passing through significantly in the last month's I don't nosy that's spelled.

Okay.

So <unk> would you.

Oh, how long do you think that you didn't pressure is gonna is going to continue and when when would the medium stabilized.

[noise] Ah I think we are going to have onion pressure and the reminding of the year.

A.

And he's going to improve as soon as we as 30 to originate mould retail a lunch with higher rates.

Okay.

Ah Okay and then my first question is on capital you mentioned that you you Ray 500 million dollar bummer.

Before so I understand that before June so W. R capital adequacy ratio there Michelle for for the second quarter does that include I assume that they had gone into a T. O. Two capital. So is this kept like the direction include that 500 <unk> in there [noise].

Yeah.

[noise] talking about BTB, we have Ah sound Puppy does base at the end of the second floor bumped.

<unk>.

A home equity to one made sure N in the regulatory measures more than you live in per cent and around 15%.

B a S. B E sort of the bun is going to improve the bas ratio for the my original $130 million a trench it up less T shirt that'd be willing to be around 30 basis points.

<unk> B a S.

Could you do one of course is not impacted for this transaction.

Okay. So.

I'm, sorry, I Misheard, you said that.

Bond issue would improve.

Car ratio by <unk> is that correct.

No no no no no they they bond issue he's going to improve the bih Rachel because he said to you too.

For around 30 basis points, because you want substituting one we bond with I know that one for.

70, $720 million I'm, only the monkey nella Mount abuse 130.

Inc roof the figures.

Okay. So the original improvement is 30 30.

Four four D I S L. Yeah, yeah, okay.

Okay and then the last question has to do that again I think it's called about it.

<unk> very bad so I didn't hear the answer well regarding this potential interesting a cap on you know that's being proposed legislation I guess can you talk about exactly what the proposals are and what do you think.

Like little vegetable path and if they do fast.

Hollywood you deal with that sort of issue.

Okay.

Sorry for me can you repeat Oklahoma.

Yeah.

The question is gardening.

The proposed interface thread cat.

I believe you touch that one that before but I hadn't heard the answer because the connection it was very bad so I'm asking just if you could repeat and elaborate a little bit as far as okay. I'm wondering if if that's okay.

What are the likelihood of them passing and what's your response.

Oh, yeah, Thank you Oh well.

Very popular.

Burgers or proposed Congress regarding it looks like that's the status.

Yeah.

<unk>.

And would you be made you feel.

And after that.

Well that can be we eat a whole like muscle system won't see.

<unk>.

You too a constitution and things like that he told me.

The grilled cheese, very cosby, especially the microphone what's your history.

What we're working on that I'm trying to educate them for me the awareness on the May I have to intercept national.

Take on the on the.

Oh, no the financial system budget.

I'll also deactivation all three of the appointment.

My bedroom.

Right so.

[noise] and you're just gonna have a [noise].

[noise] can you until you get it so I'm sure they'll.

Timeline.

Yeah.

Yeah.

It's quite difficult to.

<unk>.

Well, it's very beautiful dog.

How about yourself.

That's a as we speak about yourself.

Not every project.

Hello.

You can become follow goals.

Possibly Yahoo.

Sure.

True true.

[noise] evaluating Ah.

Yeah, I told her to prevent constitutional law.

[noise], Okay alright. Thanks.

We will Miss now to our next question from Andre Super. Please go ahead [noise].

[noise] grilled onions, all thank you for the person patient. My question is Creek has been there are actually you up to program. The second phase of their gaumin going into your scheme Democratic already commented 20 per cent market turning bad one mostly dedicated to me Banco what I've heard D is that the process for disbursement of this month.

[noise], it's taking much longer done in the in the parents <unk> face so I would like to understand how much of this money that I understand from the 10th bye-bye. They have already I wanted 70 per cent of that how much of that money has already been reach your clients and when would you expect.

These days to be completed that would be my first question.

Ooh Ooh.

Ooh Ah Ah Ah hold much more complicated what on those fries, but more on the coffee that's how I do would you be the government.

Institutional buttons like doing that you visit you anything on the phone.

The number of loans since it seems.

Who's also part of the food Microfinance.

Different loans.

Oh, Okay with the room at least people. So we will go from 77 balsam loans.

Oh 250 Bucks on loans.

The whole thing.

I'll have to check things out Bob.

Especially if you have yourself of mine I kind of looking for.

Oh no.

N as in Salt Lake Navy.

<unk> <unk> for a wrong.

And a seventies opinion, but I can double check on my bike that.

<unk>, there's three of these both of them.

Smoke so it's all.

Again.

A mother not on the financial institutions from out of it on the coffee would you be with the government.

Institutionally root beer.

Thank you. So <unk> my my second question I, just I won't dividend.

Oh, he was named and see if there's going to be 12 years <unk>.

But when they look at your numbers are the holidays company level, you're still have high hundred million dollars.

Rainy day from.

That at some point you were discussing who use them for my name, but you would you say that those are probably not learn anymore. So what are your thoughts about this money are you, giving you a strong capital Ah levels I'll I'll I'll, usually cbre's I'm, giving the most of them more positive outlook for 2021, Okay sure hold on.

<unk> even in distribution this year.

Okay.

At least see it happy.

D E.

Oh sure Mary Fun ask you remember when we were of their evening the previous years with [noise]. We serve part of my round six times a million dollars 2 billion slowly.

Three continue with the payment of the D V D a coca Cola.

[noise] and an operational business you need so we have each with Eastbourne, we have sent an extra layer that's not very much in Irene nationalist when we.

Have a better assessment of the reason, we grill against <unk> could use these funds in the hold time is an extra layer as a matter of a precaution.

Hi, This is Walter amazing.

He had something to the dividend question.

I think that this is not probably the right time to start thinking about dividends.

We are.

We'll have to rebuild the capital.

Of all our banking subsidiaries.

So if we will not expect.

Banking subsidiaries to send it is substantial dividends too Crazy Corp.

Thus, if we distribute any dividends it will be a marginal number.

Thank you.

Understood central with them.

Next question comes from Carlos Gomez, Okay with H S. P. C. Please go ahead.

[noise]. Thank you [noise] two questions. The first one refers to.

<unk> equity.

As you mentioned you paid the T. V. Then but that was just kills her pregnant or not.

More of a recovery in this quota is there something else that we haven't seen beyonce, how can I have many security for yourself the security's when they were <unk>.

And the second I think.

Try this one.

<unk>, how long usually <unk>. She was she probably cents you have given a lot of sauce to it cause he got probably provided 223 times what other banks in the region top provides.

I see I see three possibilities you said your circumstances or your portfolio as your friend.

Well you are more conservative perhaps you should be.

Or the other stuff, that's not really taken it crashes.

Send that they should which.

Which do you think his name is similar Saxonism explanation. Thank you.

Yeah.

[noise], sorry, I I was talking about the equity in Danville Iced tea.

During the first quoted we had not realize smell, so 730 million solid and in the second word T V. We have.

792, I didn't realize games, so Ah Ah significantly a change in this number and we are also realize some games.

N P. H E acting policy deeply E D E P N M.

Actually we have increased.

[noise] investment portfolios.

[noise], earning in terms of your of course off or Fruitions.

I would say there are several issues, but who has been.

Very hard as compared to other countries countries in the region.

Also I mean, we as you know are conservative we think that approach always Nancy made in the district of clothes I mean.

And they were based on models and we tried to review that's what you heard of your last weekend and that's what it was mentioned also we will try to absorb all the potential losses easier or at least most of them.

Finally, we have an important shirt off of our portfolio in India semi Margaret which is very sensitive markets in terms of.

Losses, when these scenarios, okay. So I would say it would be a mixture of the different things you would <unk>.

[noise] [noise] [noise], we on this to our final question and that comes from Brian Flores F. Citibank. Please go ahead.

[noise] hi, Thank you for the unfortunate just a quick follow up.

In a prison question you know what has some connection problems couldn't hear very well you mentioned some figure for opec's could you. Please repeat them I think it last for a colleague called Ah, Maine coffee.

[noise] [noise] [noise] and speakers do we still have you.

I'm.

Sorry could you repeat the question I think we failed to understand your question and it says how could you. Please I'm sorry, I forget prefer to opec's, but I wasn't quite sure because of the connection could you. Please repeat Brian.

Okay.

Sure no problem Ah.

Previews respond to.

You you mentioned some some figures that could help us understand the development, though that's going forward.

My connection wasn't my pet so I, just I'm just gonna be good repeat those seriously.

Okay Yeah.

That you wouldn't be here, we have control costs.

And say that along you Central project and also.

Reducing valuable compensation, so I think she's going to be a.

If reality during the year and now we are having to walk in a new efficiency program that is willing to give her son's between 618 months two little control in a Morris truck for a way the corporate structure Liberace.

It's a hunting evident dirty N b a baby period.

The client huh.

A a aggressively for work.

Chinese swung the nature of for example, cool imply to reduce the food green or distribution the traditional distributional network.

Use more a remote work and we are working also in in order to make some relation with a.

Flyers mm mm mm.

<unk>, Yeah, just vacation used to maintain a similar close to England ratio next year done <unk> 2019, but live around here in the column laborers, working and you spend it.

And being conscious that means that we're going to be.

And what impact it in the short and due to the reduction.

They don't interest rates in the market.

Perfect very burgers food.

Thank you.

[noise]. Thank you.

Now I would like to turn the conference can Mr. Walter Bailey, Chief Executive Officer for final remarks [noise].

Thank you and good morning to all of you.

Undoubtedly there's gonna be in an extraordinary Florida [noise].

G D P falling by about 33% when confirmed with the same quarter last year.

This is without precedent not only credit cards history, but in the last 100 years Peruse history.

And as you are all aware.

Is the worst performance of any Latin American economy.

In this context.

Salt should not be surprised.

And on the country should be reassuring.

Our balance sheet allows us to front-load, what our models indicate will be the required provisions rather than differing the bulk of the impact overtime.

I'm looking forward, we are watching three points of protection as key indicators of the future.

One the level of economic activity.

I just mentioned by says Sir we have solid indicators that that inflection point is already behind us.

The remaining recovery of economic activity should take place in the coming months.

And will largely be determined by the house situation.

The second inflection point is precisely the health situation.

Clearly we are not there yet.

Peru and in the World.

The opening up of the economy is creating a spike in infections.

We'll have to watch this very close.

And the third inflection point relates to our sense the damage to our portfolio is behind us.

Right now, though has explained very clearly how we arrived provisioning level.

We stopped down model based primarily on how GDP reductions affect the different segments all for the for Ya complimented with some qualitative data of the retail and some heartbeats on the whole set.

As mentioned, we are not sure that the impact of the stimulus package, which are quite substantial is fully reflecting in our <unk>.

Initial data.

Oh, no deep enough.

I'm a statistical point of view indicate that our model is conservative.

But real bottom up data will only be available by the end of this month.

We are focused not only of the impact on our part the for Ya butter on accelerating are digital initiatives and reviewing our fiscal footprint physical footprint.

We believe there are relevant opportunities in both initiatives.

Will finalize we are confident that our decision to front-load the bulk of a provisions is the right one.

Our experienced a bright crisis have showed us the benefits of this course of action.

We will come out stronger.

And with our French fries, and a stronger position.

Thank you very much and look forward to the next Order's conference call. Thank you and good Martin.

Thank you ladies and gentlemen. This concludes today's presentation you may know disconnect.

[music].