Operator: Good morning, everyone. I would like to welcome you to the Credicorp Limited Second Quarter 26 Conference Call. A slide presentation will accompany today's webcast which is available in the Investors section of Credicorp's website. Today's conference call is being recorded. As a reminder, all participants will be in listen only mode. There will be an opportunity for you to ask questions at the end of today's presentation. If you would like to ask a question, please signal by pressing *1 on your telephone keypad. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Now is my pleasure to turn the conference over to Credicorp's IRO, Milagros Cigüeñas. You may begin.

Milagros Cigüeñas: Thank you, and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer and Alejandro Perez-Reyes, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer César Ríos, Chief Risk Officer Diego Cavero, Head of Universal Banking Eduardo Montero, Head of Insurance and Pension and Rafael Enabies, CFO at Mibanco. Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. And I refer you to the forward looking statements section in our earnings release and our recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Gianfranco Ferrari will begin his remarks on the current operating environment, Credicorp's strategic priorities, and the key drivers underpinning our confidence in achieving a medium term ROE of around 22%. He will also highlight our strong performance this quarter. Alejandro Perez-Reyes will then review our financial performance in greater detail and discuss our outlook for 2026. Franco, please go ahead.

Gianfranco Piero Dario Ferrari de Las Casas: Thank you, mister Jose. Good morning, everyone, and thank you for joining us today. Before reviewing our quarterly performance, I would like to begin by sharing why we are greater confidence in Peru's medium term outlook and what this means for Credicorp. We believe Peru is entering a more favorable environment for growth. This confidence is grounded first in the continued improvement of country's underlying economic fundamentals. Private investment, domestic demand, favorable commodity prices and business confidence were already gaining momentum before the recent elections. The political transition could help reinforce this momentum. Greater visibility around the policy agenda, less fragmented Congress, and continued commitment to Peru's sound macroeconomic framework and private investment would further support contracts. Everything points to policy continuity and discipline including the formation of a new and solid technical team at the Ministry of Economy and Finance. And continuity at the Central Bank are encouraging and consistent with a more predictable economic environment. Data support this view. Business confidence has recovered to its highest level in years. Private investment is growing by approximately 13% year over year and domestic demand more than 5%. Peru also continues to benefit from exceptional favorable commodity prices. With gold prices having roughly doubled since 2023 and copper prices increasing nearly 60%. Together, these factors are strengthening investment, trade and demand and economic activity. Providing a solid foundation for stronger medium-term growth. The principal near term risk to this outlook is El Nino. While we recognize its potential impact on families, communities and small businesses, we continue to view it as a temporary and manageable shock rather than a structural change in Peru's growth trajectory. At Playcore, are prepared to support our clients and communities through this period. Leveraging our ecosystem distribution channels and digital capabilities to help them anticipate and manage potential disruptions. Alejandro will provide more details on the expected financial impact and how we are incorporating currently available information. Related to El Nino risk into our financial outlook. Importantly, based on the information currently available, El Nino does not alter our broader confidence in Peru's medium-term outlook or its Credicorp's ability to continue delivering sustainable growth. Across the region, the outlook remains mixed, but constructive over the medium-term. In Chile, while near term activities have been softer than expected, the investment pipeline elevated copper prices and policies aimed at encouraging private investment support a better outlook. In Colombia, despite ongoing challenges, and the terrible impact of the recent earthquake, market sentiment has improved following recent political development. Reflected in a stronger currency and lower sovereign yields. Overall, the improving operating environment reinforces our confidence in Credicorp's long-term outlook. Against this backdrop, we delivered a strong second quarter with solid performance across our businesses and continued progress against our strategic priorities. Let me now walk you through the key results. We delivered another quarter of strong execution. Reporting a 20.3% ROE reflecting the strength of our diversified business model and solid performance across our core business. Operational momentum remained robust across the franchise. Our innovation portfolio contributed 9.9% of Credicorp's risk adjusted revenues. Keeping us firmly on track towards strategic objectives while demonstrating that our portfolio is becoming an increasingly meaningful contributor to our earnings profile. We are also seeing trade demand continue to strengthen. Loan growth accelerated across our main lending businesses, supported by both retail and wholesale banking and BCP as well as Miraco. Our profitability continues to benefit from disciplined execution. Risk adjusted NIM stood at 5.5%, supported by our low cost funding advantage healthy portfolio mix and digital mix. Our strong capital position and disciplined risk management continue to provide resilience. We are actively monitoring El Nino risk reinforcing our ability to support to support clients while maintaining a sound risk profile. At the same time, we remain focused on building the business for the long term. Our efficiency ratio stood at 45.4%, while investments in innovation and capabilities continue to broaden our revenue base. Deepen customer engagement, foster financial inclusion and support most scalable growth. As we have discussed in recent quarters, our previous medium-term ROE expectations of around 19.5% had become increasingly conservative as our performance strengthened and the underlying economics of our business continue to improve. With greater visibility across our key markets and earning driver, we believe the time is right to update our medium-term ROE expectation. We now believe Credicorp has the capacity to deliver a medium-term return on equity of approximately 22%. This reflects a more favorable operating environment. But more importantly, the structural transformation of our ecosystem. Over the past several years, we have strengthened the drivers of our earnings, improving the quality of our loan portfolio enhancing risk management capabilities reinforcing our structural funding advantage and diversifying our sources of revenue. At the same time, we have invested consistently in technology, data and talent. Creating a more scalable and efficient business model. Innovation is an increasingly important part of the transformation. It is expanding financial inclusion and deepening customer relationships. While becoming a more meaningful contributor to growth, earnings diversification and long-term resilience. Together, these structural improvements position us to deliver stronger and more sustainable profitability across economic cycles. We look forward to sharing more information about how our innovation strategy is becoming an increasingly important driver of growth and value creation across Credicorp at our Digital Day on November 17. Now let me turn the call over to Alejandro.

Alejandro Perez-Reyes: Thank you, Gianfranco, and good morning, everyone. Gianfranco mentioned, we delivered a 20.3% ROE this quarter, supported by strong operating performance accelerated loan growth and higher risk adjusted revenues across our diversified business. As I discuss the quarter highlights, I will focus on the year over year operating trends. Loans measured in quarter end balances increased 13.1%. This uptick was driven primarily by BCP, through both retail and wholesale banking, and by Mibanco. Asset quality improved further. Credicorp's NPL ratio continued declining to 4.1% for the quarter. Supported by better origination quality and enhanced collections capabilities. Cost of risk stood at 1.9% reflecting portfolio growth within our risk appetite and an impact of 27 basis points due to El Nino related provisions based on currently available information. Net interest income increased 13.3% mainly driven by lower interest expenses supported by our low cost funding structure and by a higher yielding loan mix. Against this backdrop, NIM stood at 6.6%. Other core income grew 19.7%. Fee income increased 15.9% boosted by transactional activity at Yape and BCP. Gains on FX transactions rose 29.8% through higher volumes at BCP, which rose in the context of a higher volatility. in the context of higher volatility. Lastly, the insurance underwriting results decreased mainly reflecting a base effect from provision reversals recorded in the second quarter of last year in the Life business. Our diversified business portfolio strong capital position and healthy asset quality puts us in good stead to navigate potential El Nino impacts as we continue to execute our strategic priorities. Next slide, please. Peru's economy remained resilient, growing 2.3% year over year in the second quarter. This result reflects the offsetting effects of robust year over year. Robust domestic demand, supported by historically high terms of trade employment gains and ongoing business cycle momentum helped offset a sharp contraction in primary activities. Primary GDP is estimated to have fallen by nearly 5% year over year, marking its deepest decline since 2014, excluding the pandemic. As El Nino related disruptions weighed on fishing, agriculture and primary manufacturing. Despite these headwinds, domestic demand is estimated to have expanded roughly 5% year over year reporting the seventh consecutive quarter of strong growth. High frequency indicators continue to signal broad-based, robust economic expansion. With several indicators posting double digit year over year growth. Private investment expectations have rebounded sharply following the presidential election, reaching their highest levels since the series began in 2013. President Dina Boluarte has confirmed Julio Velarde's continuation as governor of the Central Bank and appointed Jose Arista. A respected macroeconomic and former Central Bank Director as Finance Minister. Reinforcing expectations of solid and predictable macroeconomic policy under the new administration. Next slide, please. Under Fed Chair Powell, the Federal Reserve has emphasized its commitment to price stability and signaled limited tolerance for persistently elevated inflation. Economists remain divided between expectations of additional rate hikes and an extended pause in monetary policy. In Peru, annual inflation remained around 4% year over year between April and July. Its highest level since late 23. Driven primarily by higher local transportation costs. Core inflation, excluding transportation, is still below 2%. In Colombia, annual inflation eased slightly to 6% year over year in July, from 6.1% in June. Marking the first moderation after 4 consecutive monthly increases. Inflation remains elevated however, partly reflecting the significant minimum wage increase implemented at the beginning of the year. Central Bank has responded by raising its policy rate by 275 basis points since December. Investor sentiment in turn has improved following the election of President Gustavo Petro. In this context, the peso has appreciated sharply making its strongest showing against the U. S. Dollar since 2019. In Chile, higher oil prices and weaker than expected mining production have weighted on the economic outlook this year. Annual inflation eased to 3.5% year over year in July, after reaching its highest level in 9 months in June. The Central Bank has kept the policy rate unchanged at 4.5%. In June 2026, Bolivia transitioned to a market based FX framework. Replacing its long standing peg. We do not anticipate a material impact on Credicorp, given that we incorporated market exchange rate dynamics in Bolivia in our reporting as of the first quarter of last year. In parallel, the IMF and authorities reached a staff level agreement for a new program of about $1.9 billion to support the country's economic reform program. Although uncertainty persists around oil prices, geopolitical developments in The Middle East and the potential impact of El Nino during the remainder of the year As Gianfranco mentioned, we believe that improvements in the regional operating environment support our confidence in a more favorable medium term outlook. Next slide, please. Before moving on, I would like to address El Nino risk in Peru, a key topic for investors assessing our earnings asset quality and capital generation resilience. El Nino is a transitory event that periodically affects Peru. While it may create short term volatility, it does not alter our long term view of the Peruvian economy or its underlying strength. So far in 2026, El Nino Costero has mainly affected Peru's fishing, agriculture and related activities in the North. While the broader economy has remained resilient. The strongest impact would likely materialize in the first quarter of next year if the event intensifies or converges with a global scenario. From a macro perspective, we estimate 2027 GDP growth to remain resilient around 3% under a moderate to strong El Nino scenario. While an extraordinary event could lead to a more pronounced slowdown. Importantly, Peru is entering this period with stronger fundamentals and higher liquidity across the financial system than in prior events. For Credicorp, estimated direct exposure to potentially affected clients is approximately 9% of total loans. While visibility should improve toward the last quarter of this year, we are already incorporating the currently available information related to El Nino risk resulting in additional provisions starting in June. Under the scenarios currently assessed, we expect full-year 2026 cost of risk to remain within guidance. Looking towards 2027, a more severe event could moderate loan growth and fee income through downward pressures on activity. However, we are better prepared than in previous similar events supported by lower direct exposure early mitigation, stronger risk management and analytics and healthier portfolio quality. More broadly, this is not a new risk for us, We have a robust governance framework and mitigation playbook supported by enhanced data and detailed capabilities. This helps us identify vulnerable clients earlier, communicate at scale, and deploy target deductions. In short, we are approaching this scenario from a position of strength portfolio quality remains healthy, balance sheet is strong and we are confident in our ability to manage potential El Nino impacts while supporting clients communities and the broader Peruvian economy and preserving profitability. Next slide, please. This quarter, BCP's profitability remained strong with a favorable economic backdrop. Loan growth continues to accelerate as underlying credit risk trends remain positive. In parallel, currently available information related to El Nino risk has been incorporated into provisions. In this context, ROE stood at 29.2%. From a quarter over quarter perspective, total loans rose 4.7%. In FX neutral terms, loan growth stood at 5.5%. Retail loans led the expansion bolstered by performance in the consumer and SME segment. Additionally, wholesale loans grew primarily on the back of long term loans. As the outlook for private investment continued to improve. NIM stood at 6.1% as the loan portfolio shifted to a higher yield mix while funding costs remained stable. The NPL ratio fell to 3.9%. This result was driven by improvements across business segments. Where the NPL ratio fell on the back of fortified risk management capabilities. The cost of risk rose to 1.4% reflecting the normalization of underlying cost of risk and additional El Nino related provisions. Underlying provisioning was mainly driven by portfolio growth in specific retail segments, particularly consumer and SME-Pyme, where higher yielding products continue to perform within our expectations. As a result, BCP's risk adjusted NIM stood at 5.2%. On a year over year basis, total loans rose 10.9%, 12.2% in FX neutral terms. Led by retail banking and secondarily by wholesale banking. Through the same factors mentioned in the quarter over quarter analysis. NIM rose 12 basis points mainly driven by funding cost improvement alongside an increase in low cost deposit share of total funding. The NPL ratio dropped 93 basis points fueled mainly by the SME-Pyme and individual segments. Mostly driven by better origination enhanced collection capabilities. Cost of risk rose 25 basis points mainly as a result of higher loan volumes, rather than a deterioration in underlying credit. Higher core income rose 15.4%, driven mainly by fee income as strong transactional activity was channeled through both Yape and BCP's Gains and FX transactions also contributed to this result albeit to a lesser extent, our transacted volumes rose significantly in a context marked by high volatility. As a result, the ratio of other core income to assets remains strong, supported by our diversified revenue stream. Finally, operating expenses are better explained on an accumulated basis, rose 14.9% year-to-date due to an uptick in both administrative and personnel expenses. Administrative expenses rose on the level of growth in IT related services and use of cloud infrastructure. Personnel expenses rose driven by the continued development of commercial and technological capabilities and by an uptick in variable compensation. In this context, the efficiency ratio stood at 38.6% for the first half of the year. Next slide please. Yape continues to strengthen its position as Peru's leading digital ecosystem. The platform remains highly engaged with more than 16 million monthly active users transacting 69x per month and maintaining an NPS of 78. Customer engagement remains exceptionally strong, and we continue to see that translate stronger unit economics. Revenue per MAU reached billion, outpacing growth in expenses per MAU. Which stood at PEN 6. As a result, the FX contribution to Credicorp's risk adjusted revenues increased to 8.9%. Reinforcing its growing relevance within the At the same time, Yape continues to expand its financial services lending footprint. Loans reached billion. up 4x year-over-year. While the number of clients receiving loan disbursements increased to 5.6 million. With loan penetration at around 1-third of monthly active users, we continue to see significant opportunities to further expand lending adoption. Increase customer lifetime value, and deepen financial inclusion across Peru. As Yape scales, the composition of Yape revenues continues to evolve. Lending further increased its contribution to 28%, while payment contributions stood at 45%. Moreover, revenue generating payment transactions grew 42% year-over-year. Continuing to strengthen Yape's ability to generate data enhance customer engagement and unlock cross selling opportunities across the Credicorp ecosystem. Yape has a strong engagement, improving monetization and significant headroom for deeper financial service adoption position the platform to sustain scalable profitable growth. Next slide, please. Mibanco continues to strengthen its franchise. Combining healthy growth with disciplined risk management. At the same time, we continue fostering revenue diversification to enhance the resilience and quality of earnings. This strong execution translated into a quarterly ROE of 22.9%. A quarter over quarter basis, loans measured in quarter end balances grew 4.4%. Supported by continued growth in low ticket loans, the main driver of recent quarters a greater focus on higher ticket segments where larger loan sizes accelerated volume growth. In this context, the NPL ratio continues its downward trend reaching a record low of 4.8%. The average yield on interest earning assets maintained an upward trend offsetting a slight uptick in the cost of As a result, NIM rose 23 basis points to stand at 15.2%. The cost of risk rose 30 basis points to stand at 5.1%, reflecting higher underlying provisions and additional El Nino related provisions. Provisioning for underlying credit risk, driven primarily by portfolio growth within our risk appetite and to a lesser extent, slight increase in write offs. Adjusted NIM stood at 11.2%, down 5 basis points. From a year over year perspective, loans rose 15% supported by improved productivity amid a dynamic economy. This context, our portfolio's margin increased despite a slight uptick in the cost of As a result, NIM rose 78 basis points. The cost of risk fell 24 basis points on the back of lower risk vintages. Despite ongoing investments in strategic initiatives to fuel digital transformation and modernize technology, the efficiency ratio for the first half of the year dropped 4 percentage points to stand at 48%. Mibanco Colombia continued to deliver strong results with double-digit loan growth disciplined risk management enhanced commercial productivity. As a result, ROE reached 18.5% for the quarter. Next slide, please. Grupo Pacifico delivered solid results this quarter on the back of strong commercial execution across all businesses. In this context, ROE stood at 19.1% at quarter end. Net income remained relatively flat year over year. Pacifico continues to deliver solid profitability led by our Life business, the largest contributor to net income. Our Life business posted healthy organic growth this quarter, driven by strong momentum in bank assurance and retail sales. Nevertheless, net income reported lower results due to a base effect associated with provision reversals in the disability and survivorship line in the second quarter of last year. In the P&C business, net income fell driven primarily by lower underwriting results, which raised their higher claims. Our Corporate Health business posted higher net income for the quarter, supported by stronger premium production as the customer base expanded. Meanwhile, results in our medical services business remain relatively stable, supported by resilient commercial dynamics and disciplined cost management. Next slide, please. Profitability in our Investment Banking & Wealth Management business strengthened significantly this quarter. Sustained growth in recurring businesses coupled with an uptick in trading contribution due to temporary market volatility drove a strong ROE of 23.5%. From a year over year perspective, revenues increased supported by solid performance across our recurring business. Asset management and wealth management contributed positively with AUM up 44%, 30%, excluding new AUM from acquisitions. The Capital market line also contributed significantly to results where heightened market volatility and increased activity among corporate clients created favorable conditions to boost trading and client driven earnings. Higher revenues were partially offset by an increase in operating expenses where the uptick was driven by a comparatively low base in the first half of 2020. As a result, net income increased 47% year-over-year. Next slide. Now I would like examine the evolution of our consolidated balance sheet. Sequentially, interest earning assets grew 1.8%, driven primarily by loan growth at BCP and to a lesser extent, by higher investment balances as we capitalize on tactical opportunities while leveraging our cash position. The liability side, the 3.5% funding increase was driven by growth in demand and time deposits and an uptick in the balance of central bank funding. On a year over year basis, interest earning assets rose 12.2%, led by loan growth at BCP and Mibanco. Impact of this shift in the asset mix offset the impact of decreasing interest rates. Keeping the yield on interest earning assets stable at 8.4%. On the liability side, lower interest rates and an increase in the share of low cost deposits drove a 29 basis-point decline in the funding cost. Which stood at 2.2% at quarter-end. Against this backdrop, NIM was 6.6% for the quarter. Next slide, please. Moving on to loan portfolio quality. Portfolio quality continues to evolve favorably this quarter as NPLs dropped to 4.1%. Driven by improvements in origination, monitoring and collection capabilities. Based on current available information, we registered approximately $106 million in additional provisions related to El Nino risk. This brought our reported cost of risk to 1.9%. Excluding this impact, cost of risk stood at 1.6%, primarily reflecting portfolio growth within our risk appetite. Underlying portfolio trends remained solid, supported by healthier vintages and enhanced risk capabilities. As a result, coverage levels remained strong, reinforcing the balance sheet's ability to absorb future volatility while preserving capacity to support growth. In this context, the NPL coverage ratio rose and stood at 117.3%. Next slide please. Core income grew 15.1% year-over-year on the back of diverse revenue streams with net interest income fees and FX gains reporting double digit expansion. Profitability metrics continued to strengthen year over year, with risk adjusted NIM standing at 5.5% this quarter, reflecting disciplined pricing, portfolio mix optimization and solid underlying credit performance. Efficiency ratio for the first half of the year stood within guidance of 45.6%. Operating expenses grew 13.5%, fueled primarily by core businesses of BCP and investments in our innovation portfolio. Growth in core business expenses at BCP was driven mainly by IT expenses for commercial and transactional capability development. Expenses for our innovation portfolio which were led by Yape, Tenpo and Culqi, rose 33% and represented 84% of disruptive expenses for the work. Next slide, please. First-half ROE reached 21.2%, supported by the strength of our integrated business ecosystem and ongoing improvement in economic conditions. Income remained robust bolstered primarily by accelerated loan growth across key businesses. Expansion was achieved alongside prudent risk management complemented by an increasing contributions from diversified revenue streams. Which rose from the back of market-leading transactional and digital capabilities. Now I will move on to our guidance. Next slide, please. We continue to expect the GDP to grow around 3.5% in 2026 including the estimated impact of El Nino. We are raising our outlook for loan growth measured in quarter end balances to around 12%. Reflecting stronger than expected momentum primarily in retail banking at BCP and Mibanco. The expected loan mix shift towards retail coupled with a more recent scenario where interest rates are expected to remain higher for longer should support NIM and risk adjusted NIM. Which we expect to stand at the higher end of our guidance range. As retail origination continues to expand and we incorporate currently available information related to El Nino risk we expect the cost of risk to increase in the second half of the year and to remain within our guidance range. We are also raising our fee income outlook, now expecting high teens growth supported by stronger transactional activity continued economic momentum, our strategy to strengthen principalities. Our efficiency ratio is expected to remain within guidance. We are reaffirming our 2026 ROE guidance of around 19.5% with a current bias to the upside subject to how El Nino evolves. While operating income came in ahead of our expectations, visibility on the potential severity of El Nino remains limited As new information becomes available, will continue to reflect updated El Nino related provisions. Looking ahead to the medium term, as Gianfranco mentioned earlier, we expect ROE to move structurally higher. This outlook is supported by stronger loan growth across our core businesses, higher yield portfolio mix sustained funding advantage and increasing contributions from fee based revenues. As our ecosystem led initiatives continue to scale, we expect to capture greater operating leverage while maintaining disciplined risk management and capital allocation. Together, these drivers strengthen our ability to deliver a medium term ROE of around 22%. Before we begin the Q&A and given that this will be my last conference call Credicorp's CFO, I would like to take a moment to thank all of you for your support, Engagement and constructive dialogue throughout my tenure. Your questions, insights and feedback have helped us make us a better company and I am deeply grateful for your professionalism and trust. As I take on my new role in Mibanco and Credicorp's microfinance business, I look forward to staying connected with many of you and sharing our progress and perspectives on the opportunities ahead. I would like also like to wish Ignacio every success in his new role. Having worked closely with him for the last 2.5 years, I am confident that he will do an outstanding job and I know Credicorp will continue to benefit under his leadership and expertise. Now, I would like to open the Q&A session. Thank you.

Operator: We will now begin the question and answer session. If you would like to ask a question, please signal by pressing *1 on your telephone keypad. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We will pause for just a moment to allow everyone the opportunity to register for questions. We also ask that you please only ask 1 question at a time. After each question has been addressed, by our speakers, you will then be allowed to ask as many follow ups as needed. But again, please only ask 1 question at a time. Thank you. The first question will come from Ernesto Gabilondo with Bank of America. Please go ahead.

Ernesto Gabilondo: Thank you. Hi. Good morning, Gianfranco, Alejandro, Ignacio, César, Francesca, Milagros. Congrats on your second quarter results and in your conviction of reaching medium term ROE of 22% in the next years. And also very helpful the slide that you provided about El Nino. Very, very helpful. So my question would be on loan growth. Congrats on returning to double-digit loan growth. And I noted that you are expecting around 12% growth in this year. But having said that, how should we think about the loan growth breakdown by segment? Just understand if you would be conservative in the risky portfolio, the SME portfolio, or how comfortable you are to grow the portfolio under a potentially stronger El Nino? Thank you.

Gianfranco Piero Dario Ferrari de Las Casas: César?

César Ríos: Yes. Thank you, Ernesto, for your question. Regarding El Nino, I will say that our approach has been both a comprehensive trying to address the different dimensions on the impact and also very granular at the same time. As Alejandro has highlighted, we have to identify it the parts of the portfolio by segment, by geography, per field of the client that has going to be more impacted under the scenarios that we have contemplated And we are adjusting and going to adjust gradually The appetite in these segments varies geographically. So our impact is going to be related to this part of the portfolio, depending on the severity. But in the rest of the country, subject to economic growth, our ambition and expectations remain strong.

Gianfranco Piero Dario Ferrari de Las Casas: And so maybe to complement, this is Franco. Maybe complementing César's comments Actually, the question has like a twofold answer. 1 is specifically on El Nino, which is what César just answered. I would only add there that we are also trying to be proactive in helping our clients to be more prepared for the impact by industry, by region, by really, as I mentioned, granular. But the other answer is more a longer term answer is as we mentioned along the presentation, business confidence is a record levels, and private investment has been growing at double digit. Travel consumption has been growing at over 5% over the last, I believe, 6 quarters already. And on top well, commodity prices are where they are and so on. So yes, El Nino is, I would say, a hiccup In terms of potential negative impact. But in a more longer term vision, we are very confident that the macro environment is very, very positive.

Alejandro Perez-Reyes: Hi. This is Alejandro. Maybe just 1 more important data point to Gianfranco's comment. Is the loan penetration. I think I mentioned this sometime before, but if you take constant exchange rate of December 2025, at the end of last quarter, the penetration of loans in Peru was 34%. 2019, it was 42% of GDP So, I mean, there is still an opportunity even to go back to numbers that we have already seen. So we think the opportunity is big and we have to add the capabilities that we have developed, we are really confident in the midterm loan growth. Regardless of the hiccup that might come in the short term.

Ernesto Gabilondo: No. Perfect. Very helpful, gents. Gianfranco, César and Alejandro. And just to follow-up on all these in terms of the trend for example, wholesale and retail, should we expect for both loan portfolios to be at double-digit because of what you were mentioning private investment, private consumption, commodities prices, all that should be helping. And in that scenario, very, very granular in what could be exposed related to El Nino. So how should we think about the loan growth for both segments? Double digit for both? Or how are you thinking about it?

Gianfranco Piero Dario Ferrari de Las Casas: Yes. We are expecting I mean, again, without considering the hiccup coming from El Nino, we are expecting double digit loan growth for both wholesale and retail. Now retail has been already showing it and we were mentioning hopefully, picking up again with very high expectations from private investment. Yes, the short answer is yes. Both portfolios should grow. Solidly. Perfect.

Operator: Thank you very much. The next question will come from Brian Flores with Citibank. Please go ahead.

Brian Flores: Hi, team. Good morning. Congratulations on the results and best of luck to and Alejandro and Ignacio on their respective roles. I have a question on asset quality. The cost of risk seems to be very, very controlled despite the fast growth you are showing, right, across the board in SMEs, in YAP, in consumer. So we wanted to understand the strategic drivers. If we as analysts, do you think we are I do not know, Maybe underestimating how much better your underwriting is or the collections have improved because, or do you think this is more extraordinary regarding, you know, the extraordinary liquidity in the system, the good conditions from the macro? Just wanted to understand how much do you think this is idiosyncratic and how much would this be more of a tailwind from the from the macro side? Yes.

César Ríos: Thank you, Brian for the question. I think, without a doubt, the positive economic environment is a significant factor. As we have mentioned previously, we have been working very disciplined in several parts of the risk capabilities and the origination models monitoring collections. And we have entered, I would say, after an initial phase of identifying particular improvements into a new phase in which we are developing, I would say, better, higher capabilities and we are starting to reap the benefits of that. The approach is very disciplined. BCP, Mibanco also in the other subsidiaries of the group. Level by level. And we are developing and deploying these capabilities. These capabilities are also going to help us to withstand the potential impacts of El Nino But our long term vision is that we are going to increase the capacity to originate higher in general, higher yielding loans with controlled risk, monitoring very closely the risk appetite.

Gianfranco Piero Dario Ferrari de Las Casas: Alejandro highlighted a specific the collections. We have been more focused on models, origination, monitoring. And recently, we have started to develop additional capabilities and collection that are showing results in BCP and. So the short answer is the environment helps, but we are doing our job improving internally. Brian, just 1 quick comment on top of what César just mentioned. Do not forget that we do not manage by cost of risk. We manage by risk-adjusted NIM. So the yes. The cost of risk may increase, but the what we are convinced is that the risk adjusted NIM is going to increase more than that, really. Because as we go into a new market, the Yape portfolio is a great example. Yes. The cost of risk is higher, but the risk-adjusted NIM is also higher. Yeah. No. Super clear, Gianfranco.

Brian Flores: Thank you. Just also, if I may, a quick follow-up on your recent comment. We know, obviously, we have a new administration coming in. Wanted to check with you after maybe your initial approaches with them if you feel the tone in terms of partnerships, in terms of growth is a bit more upbeat, or are you a bit more constructive in terms of the outlook here for particularly growth, right?

Gianfranco Piero Dario Ferrari de Las Casas: Yeah. Yes. Yes. As Alejandro mentioned, before, the penetration, the financial system, we have gone back. it is not that it is still very low and we have gone back. So we have not had any specific contact with the new administration, but from what we see, and listen, the whole environment is much it is gonna be much more proactive in terms of promoting financial inclusion, promoting growth, promoting private investment. Obviously, that environment is much more benign for growth of the financial system. No. Perfect. Thank you very much.

Operator: The next question will come from Renato Meloni with Autonomous Research. Please go ahead.

Renato Meloni: Hi, everyone. Good morning. Congrats on the results and thanks for taking the question here. So I wanted you to expand your comments on the provisions for El Nino and what to expect going forward? So first on the $106 million this quarter, was that done, like, client specific, or it was that more sector specific in the ones that you mentioned before? And then going forward, is this going to be like a recurring level for the next couple of quarters? Or this is enough for the foreseeable future? Thank you.

Gianfranco Piero Dario Ferrari de Las Casas: César?

César Ríos: Yes. Thank you for the question, Renato. As we mentioned, we have been very thorough analysis of the portfolio. Talking specifically the provisioning, we have done client by client, segment by segment in the wholesale part of the portfolio. And in the retail, we have used an approach of geography profile of the client. And we have several scenarios. And we are with the logic of expected losses that is embedded in the logic of IFRS 9. or IFRS 9. We are constituting provisioning and we are going to have probably a second important point of control the end of the third quarter, beginning of the fourth, because in our conversation with the specialist, the climatologists, at that point, September-October, we are going to have a much better assessment of the severity. We are moving in the expectation of medium and strong El Nino. And at this point, we are going to make a reassessment to calibrate the expected losses that we need to book this year.

Renato Meloni: Perfect. So September, October, a potential new adjustment, and that is going to be it for this year. And when we get to 2027, which you mentioned is when the economy will see the impacts maybe another 1 there, or a potential reversal? What was that?

César Ríos: Yes. We have the way we provision through IFRS 9 is a forward looking provision. Therefore, you are completely right. Depending on the data set of transmission, depending on the data we can analyze in September, October, we will make a new assessment. And as we move forward on the real impact of El Nino comes into play, we will decide what to book. The models will tell us what the provision should be. But bear in mind, our provision system, is forward looking. Yeah. Based on expected loss.

Renato Meloni: Thank you. Thank you, and congrats again on the strong results.

Operator: The next question will come from Daniel Vass with Safra. Please go ahead.

Daniel Vaz: Hi, guys. Good morning. Congrats on the results. Alejandro, Ignacio, wishing you success in your new roles. So my question is regarding your refreshed midterm ROE guidance. So we often as you are a bank, we often do a bottom-up analysis to your model. But Credicorp, you are still are holding company also, right? So you have a lot of businesses. We could look at the top down view or some of the parts view also. So I guess I guess my question is, which companies in your holding carry the most upside right now? So Mibanco is already running above the 22% guidance. BCP runs at thirties, and Pacifico and the advisory businesses run below. So should we expect even better ROEs at the ones that already run above it, or ROEs improving at the ones which are at this level right now. Thank you.

Gianfranco Piero Dario Ferrari de Las Casas: Alejandro?

Alejandro Perez-Reyes: Yes. Thank you, Daniel. I will first start talking about the levers that we believe are behind the new midterm ROE that we have shared and then give you some color on the specific question. So, basically, we believe this comes from continuing to grow in the underpenetrated financial product segment. And this, by the way, is lending but it is also investment. it is also insurance. So all in all, they are all under penetrated segments even if you compare them to countries like Colombia and, of course, Chile. You know? So still an opportunity to continue penetrating. The other thing is that we are expecting higher risk adjusted margin This is supported by pricing, the shift in portfolio mix that I have been mentioning risk capabilities also. So we should see an impact there. The other important thing is an increasing fee income and monetization of our innovation portfolio. Yape being the most visible 1, but other ones coming down the pipe pipeline that should start to generate also more fee income and a positive operating leverage where basically income should grow faster than our expenses. So all of those things bring up to this new around 22% ROE. When you talk specifically, I think there is both things can be true in the sense that I believe there is still space for some improvement in ROE in the companies that are performing strong today, say, BCP, Mibanco. Going back to this penetration in lending, etcetera, But if you think about also kind of penetration in insurance and their penetration in mutual funds, there is still space also in the other companies. So we are not seeing this, like, specifically in 1 or 2 companies. We believe there is space for improvement. Across the board.

Gianfranco Piero Dario Ferrari de Las Casas: Just to add on what Alejandro just mentioned, also bear in mind the impact on the disruptive initiatives. They are very in terms of ROE, they are already accretive. So they are going to be accretive this year. And, obviously, we move forward, they should be what we expect them to be much more accretive. So that is another lever that we should take into account.

Daniel Vaz: Okay. Thank you.

Operator: The next question will come from Carlos Gomez-Lopez with HSBC. Please go ahead.

Carlos Gomez-Lopez: Thank you for taking the question. And the first in congratulations and thank you to Alejandro for this time with us. It has been brief, but it has been good. And good luck with Matthew and his new role. I want to go back to I guess the same question, which is the ROE target. My question is a little bit different. What is the urgency to increase the midterm ROE when you were at around 17% for a long time, increased on last October to 19.5%. Now you got 22. I mean, at this point in time where arguably everything is going right, you are delivering 21%, is this something that you are setting an internal goal or something has changed fundamentally that makes you believe that you actually need to be there. And I also just thought because I go back in time, and over the last 10 or 20 years, your ROEs have been, you know, around 17 and a half, 19%. that is even taken out COVID. And you actually are less leveraged now than you were then, have more capital. So, I mean, it would stand to reason that maybe you know, it does not get that high. So we want to understand why you need to move the target now. And, again, I do not doubt that you are going to achieve it. I just wondering why. Thank you.

Alejandro Perez-Reyes: Hi, Carlos. This is Alejandro. So I will begin by saying that, yes, we did mention the 19.5% in October of last year, but I specifically mentioned there that we were going into a big political cycle in all of Latin America. If you remember at that time, we were about to have elections in Colombia, I am sorry, Chile Bolivia, Colombia, Peru, And so we basically decided to take a conservative stance and we were explicit about it. And we did mention then that we would come back after that cycle with a revised number, which is what we are doing right now. And when you look, and I was just explaining the drivers, the ecosystem we built our ability, the principality we have built, our ability to better serve all these clients It makes us confident that we can achieve a higher ROE than the around 19 and a half. Even I mean, just to give you an example, even this year, if there was no El Nino, we would have outperformed clearly that 19 and a half and probably would have been above the 20% mark. So our ability to generate returns today is higher than the number we gave on a stable situation. I mean, taking away specific things like El Nino. So we thought it was the right time to basically give a more realistic number on what we can achieve. In the coming years. And you do-- you hit right on the spot. We also are a more-- a less leveraged company. So the risk of the of Credicorp is lower than a few years ago when the core equity ratio was in the single digits. So but we are confident that the 22% is more than achievable.

Carlos Gomez-Lopez: Thank you so much, and good luck. Thank you.

Operator: The next question will come from Yuri Fernandes with JPMorgan. Please go ahead.

Yuri Fernandes: Hey. Can you hear me? Hi. Gianfranco, Milagros, César, Alejandro, everybody. I have a and congrats also on the quarter. Pretty good 20% ROE despite the additional provisions. I have a curiosity about the quarter here on other income, especially the non core income. It moved up a lot this quarter, up some 10% quarter-over-quarter. So if you can explain what drove it I guess, on your comments in the notes, you mentioned FX. Maybe due to mark-to-market. So what drove this? Is this client activity? Should this be more recurring? Or should we see a normalization of this other income line? Thank you.

Alejandro Perez-Reyes: Yes, sure. Hi, Yuri. So basically, would say it comes from a lot of different sources as we increase this principality. We have been talking about there is more transactional fees that we generate, both at BCP, Yape. I mentioned FX as a driver also. Which has been growing for the last few years. It had a very good return due to the volatility related to election but we still believe it can continue to have very strong results going forward. And in general, again, as we move further down with our strategy to increase municipality, we are getting a larger share of fees in the market and we are expecting that to continue. And that is why we I mentioned earlier when I was giving the guidance, we are guiding to high teens or mid- to high-teens expected growth there. And we believe that should continue going forward.

Yuri Fernandes: No, super clear. And if I may, a second 1 here, guys. Just on cost and efficiency. Could we see for the 2022 ROE, cost-to-income be much better? Because I know today expenses and revenue they are growing somewhat at the similar pace. But you are accelerating on growth. You are pretty confident with risk adjusted margins. I know you have your new initiatives, 350 bps guidance for cost to income headwind. But I do not know, could we start to see expenses slowing down and maybe efficiency become a powerful tailwind for you? Thank you.

Alejandro Perez-Reyes: Yeah. The current answer is yes. This number has not changed. When we were in October last year, we talked about a mid-term cost-to-income closer to 40%. We are expecting to go in that direction. Our view of the market takes us in that direction as our innovations scale. Yeah.

Gianfranco Piero Dario Ferrari de Las Casas: As Gianfranco mentioned today, the innovation portfolio is ROE positive, in ROE. But it has around 300 basis points of drag on cost-to-income. That is gonna change as Yape keeps scaling and goes from the current cost-to-income is higher than BCP. And going below those numbers, more in line with large neobanks. So all in all, what we see going forward is an improvement in the operating leverage. So basically, income growing much faster than expenses and is going to be around a 40% cost-to-income in the mid term.

Yuri Fernandes: Okay. No. Perfect. Thank you very much. Bye.

Operator: The next question will come from Tito Labarta with Goldman Sachs. Please go ahead.

Analyst: Hi. Hi, everyone. Thank you for taking my question and congratulations on your results. Just have a quick follow-up on a comment you made earlier. I think you mentioned you are just your portfolios based on what you are seeing for El Nino. I just wanted to know if you could share a bit more color if that would have some mixed impact into NIM and your asset quality expectations? Thank you.

César Ríos: Yes. Thank you. The change is actually in the origination mix in a specific area. So we continue improving in general, but identifying areas that are going to be more severely impacted at least with the profile of the client, we adjust lowering the risk appetite temporarily in the So temporarily, we are going to have let's say, a less pronounced change in the mix of the portfolio but the general trends continues.

Alejandro Perez-Reyes: Maybe I will just add little thing, as I mentioned in the guidance, we this is another way. We are expecting this year to have around 12% loan growth. So again, it is gonna be a very strong year. Where we might see a little bit of a lower loan growth is in 2027 when all the things that César is mentioning would take place. You know, again, the main effect of El Nino are expected to be in 2027, and that could mean probably a little bit of a lower rate of growth in loans.

Analyst: Okay. Thank you.

Operator: The next question will come from Andres Soto with Santander. Please go ahead.

Andres Soto: Good morning, everybody. Thank you for the presentation. I have questions. The first 1 is a follow-up on the El Nino provisions. I understand you guys will do a new assessment by the end of the third quarter or the beginning of the fourth 1. But I would like to understand from your guidance for the full year, how much of additional provisions are you already considering for El Nino? Is it going to be similar to this quarter, which are the 30 bps to the cost of risk? So it is going to be higher, lower, Any color there will be helpful.

Alejandro Perez-Reyes: Hi, Andre. This is Alejandro. Maybe the main color I will give is that what we are expecting is to remain within guidance even with a severe El Nino case. So, I mean, we still do not know how far it is gonna get, but given the dynamic we have seen this year where we were coming on the lower end of the guidance, what would probably happen is that we move towards the middle to higher end of the guidance, but stay within guidance even with the full provisioning of a severe El Nino. Hope that helps.

Andres Soto: My second question is on Yape lending. We saw a significant acceleration this quarter. I would like to understand, this acceleration is coming from, increasing the balances for your existing customers as you extend duration? Is it coming from new customers, or is already reflecting the lending initiatives with SMEs within Yape?

Analyst: Francesca, can you go to that, please?

Francesca Raffo Paine: Yes. Hi, Andre. So it is actually coming from both As you have heard us say, we started Yape with a mono quota, a mono installment. And then once we know your behavior, we go to a multi installment We do this for SME and for individuals. The growth is today primarily in individuals just because the SME is a little farther behind. We started later. So we are seeing growth on both sides. And what we are seeing as well is recurrence in customers so repayment and a secondary loan, a third loan. And we are seeing ticket growth and also term growth. Those contribute both on the loan portfolio size and, of course, on the NIM. So this is still gradual, This is very slow, but this is what we are seeing on both segments.

Andres Soto: Thank you so much, Francesca. At some point, you mentioned what the potential number of customers that you could reach via lending. Do you have any update to that number based on performance that you have achieved over the past few quarters?

Francesca Raffo Paine: Yes. So Yape, Yape, as you know, has a base of over 16 million. You have heard that credit penetration in Peru is still low. We have today reached over 5 million customers through a loan and the portfolio is around I would say, we disbursed around 2 million loans So the growth rate here is important. We do not have a set target in terms of, like, 50% of the other customers should have a loan or anything like that. But of course, we feel because of the product and the type of customer we serve, This is going to be a large a large scale in terms of loans. Small loans, again, this is not going into high loans. that is more BCP and more Vibanco. This is very short loans and shorter term as well. So growth should be expected.

Andres Soto: Perfect. Thank you very much and congratulations everybody on the results.

Operator: The next question will come from Alonso Aramburu, a private investor. Please go ahead.

Analyst: Thank you for taking my question. Well, you have just upgraded your medium term ROE target to an impressive 22%. Driven by structural improvements and digital monetization. However, you also mentioned that the strongest impact of El Nino will likely materialize in Q1 2027. And a severe scenario could pressure long growth and fee income. Realistically, how much of that 22% ROE guidance is at risk if El Nino shifts from a manageable shock to a severe event later this year. And what is the specific cost of risk threshold that would force you to walk back this new profitability target.

Alejandro Perez-Reyes: Hi, Alvaro. This is Alejandro. So when we talk about the midterm ROE, we are talking ROE for the next 2 to 3 years. And we believe it is completely achievable as I was mentioning. We are not necessarily expressing a specific guidance for 2027. Which would of course be impacted by a severe El Nino and could potentially 2027, we could guide for a lower ROE than the 22%. Again, we are not saying anything out of as of now. But it does not change our expectation of achieving this 22% midterm ROE at all. It would just have a shorter term impact. The same with loan growth. Mean, we are expecting double-digit loan growth for the coming years. Not necessarily that is not necessarily going to be the case in 2027, depending on how severe El Nino happens to be.

Operator: The next question will come from Alonso Aramburú with BTG. Please go ahead.

Alonso Aramburú: Yes. Hi, good morning. Thank you for the call. Just following up on a little bit on El Nino as well. How are you thinking about dividends potential extraordinary dividends for the second half of the year? And maybe if I can ask about it being on a separate on a different way, Is it is it a severe El Nino? what is what is the amount of provisions that you think you can you will have to book this year? Is it 500 million soles? Is it a billion soles? Maybe if you can provide a figure for that. Thank you.

Gianfranco Piero Dario Ferrari de Las Casas: Do not I will take the second part and then we will talk about the dividend. Yeah.

Alejandro Perez-Reyes: Do you mean the total operation? Yeah. So again, we are not providing a number because as was mentioned earlier, this is information that goes into our models and comes out with a certain number that we will include, and we will give more color as we put more provisions into the numbers. But again, as I mentioned, we are expecting to remain in guidance even in the case of severe El Nino from what we see today. So, again, without giving a number just give you some color, imagine us going up to the upper side of our guidance, and that should give you a sense of what could end up happening, but it is going to depend on the information that keeps coming in the coming weeks and months.

Gianfranco Piero Dario Ferrari de Las Casas: Yeah. And maybe on the dividend question, we believe that we are very well capitalized. So the potential provisions or additional provisions because of our very strong El Nino should not affect the extraordinary dividend that we may pay this year. Because, actually, we are paying profits that were generated last year. So yeah, that is it.

Alonso Aramburú: Great. Thank you.

Operator: It appears there are no further questions at this time. I will now turn the call back over to Mr. Gianfranco Ferrari, Chief Executive Officer, for closing remarks.

Gianfranco Piero Dario Ferrari de Las Casas: Thank you. As we close today's call, I want to come back to the main message I shared at the beginning of the call. We have greater confidence in Peru's medium term outlook and Credicorp is well positioned to capture the opportunities ahead. The results we discussed today together with the updated medium term ROE expectation we shared, reflect not only a more constructive operating environment but also the structural progress we have made across our ecosystem. Credicorp today has deeper customer relationships, stronger digital capabilities, disciplined risk management, and a more scalable business model. Importantly, our growth remains anchored in our purpose. Improving lives by helping people and business thrive. That purpose guides how we invest expand financial inclusion and support our customers and communities through changing conditions. We believe in Peru and we believe Credicorp has an important role in shaping its future. Every day, we have the privilege of helping millions of people and businesses move forward. And there is no greater opportunity than that. Before closing, I want to thank Alejandro for his partnership and leadership as CFO, I look forward to continuing to work closely with him in his new role leading our microfinance business and Mibanco Peru. I also want to welcome Ignacio who will join us as CFO and will be with us on next quarter's call. Thank you all for joining us today.

Operator: Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect.