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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of November, 2005

 

 

CREDICORP LTD.
(Exact name of registrant as specified in its charter)
 

 

Clarendon House
Church Street
Hamilton HM 11 Bermuda
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____



For additional information please contact:     
Jose N. Hung    Alfredo Montero 
Phone: (511) 313-2123    Phone: (305) 448-0971 
E-mail: jhung@bcp.com.pe    E-mail: amontero@bcpmiami.com 

CREDICORP LTD. ANNOUNCES FINANCIAL RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2005

HIGHLIGHTS

1


Credicorp (NYSE:BAP; LSE:BAPC1) reported a consolidated net attributable income for the nine month period ended September 30, 2005 of US$137.5 million, 43.5% above net profit in the first nine months of 2004 of US$95.9 million, or US$1.72 and US$1.20 per share, respectively. Net attributable income in third quarter 2005 was US$47.6 million, or US$0.60 per share, 44.4% above net income of US$32.9 million, or US$0.41 per share, in the third quarter of 2004.

Results in the first nine months of 2005 and in the third quarter are higher than profits in the same periods of 2004 mainly because of higher NIM combined with loan volume growth and growth of non-interest income. Credicorp’s results this quarter also benefited from its previous conservative loan loss reserve policy since the significant and continuing improvement of the quality of loans led to further recoveries of previously charged-off loans that exceeded provision requirements. This is reflected in the reversed loan loss provision expense. These income improvements were stronger than the related increase in operating expense and translation losses, due to Nuevo Sol devaluation.

As mentioned, loan loss provisions, net of recoveries, had a positive effect in the current quarter’s results and also cumulative through September 2005. Loan quality improvement is noted through a lower past-due loan ratio, that decreased from 4.8% at September 2004, to 2.5% at the end of September 2005, and by the improved coverage of overdue loans by provisions which improved from 122.0% to 172.4%, respectively.

I. CREDICORP LTD. AND SUBSIDIARIES

CREDICORP LTD. AND SUBSIDIARIES
SUMMARY OF RESULTS

 
    Three months ended   
Nine months ended 
     
(In U.S.$ millions)   30.09.04    30.06.05   
30.09.05 
 
30.09.04 
30.09.05 
 
Net interest income    93.5    104.7    114.3    276.4    322.8 
Provisions for possible loan losses, net(1)   3.8    (1.9)   (4.9)   10.9    (9.9)
Other income    64.7    63.2    72.5    180.4    197.6 
Premiums, net of claims on insurance    18.3    8.4    13.6    37.8    34.7 
Other expenses    124.5    115.8    128.7    340.8    354.6 
Merger costs    0.5    0.0    0.0    3.7    0.0 
Translation result    (0.2)   1.3    (5.7)   3.9    (3.7)
Income before profit sharing                     
   and income tax    47.5    63.7    70.9    143.0    206.8 
Employee profit sharing(2)   (1.6)   (1.7)   (3.6)   (4.4)   (8.2)
Income Tax    (10.8)   (13.7)   (16.7)  
(35.1)
  (53.2)
Net Income    35.1    48.3    50.6    103.5    145.4 
Minority Interest    (2.1)   (1.9)   (3.0)   (7.6)   (7.8)
Net Income attributable to shareholders    32.9    46.4    47.6    95.9    137.5 
Net attributable income per share (US$) (3)   0.41    0.58    0.60    1.20    1.72 
 
(1) Net of income from recoveries of charged-off loans. 
(2) Previously reported as part of personnel expenses. 
(3) Applies 79.8 million net outstanding shares in all periods. Treasury shares amount to 14.6 million, which are netted from 94.4 million total outstanding shares. 


Operating Changes

Prima AFP began operating in the first week of August 2005. During year 2005 it is expected to run operating losses for approximately US$10 million. In third quarter 2005, losses were US$3.1 million, and of US$3.5 million cumulative through September 2005.

2


Net Income from Subsidiaries

Credicorp’s principal subsidiaries contributed to consolidated net income as follows:

 
(US$Mn)   3Q04    2Q05    3Q05    9m04    9m05 
 
Banco de Crédito BCP(1)   US$32.0    US$42.6    US$44.2    US$85.3    US$130.5 
Atlantic    2.8    3.0    3.6    9.3    10.0 
PPS    3.0    0.1    2.4    7.7    4.7 
Banco Tequendama    0.9    -.-    -.-    1.9    -.- 
Credicorp and others(2)   -5.8    0.7    -2.7    -8.3    -7.7 
 
Net income due to shareholders   
US$32.9 
  US$46.4    US$47.6    US$95.9    US$137.5 
 
       (1) Includes Banco de Crédito de Bolivia. 
       (2) Includes Grupo Crédito (formerly Inversiones Crédito), Credicorp Securities and others. 

In the third quarter of 2005, the Credicorp and others concept contributed net losses of US$2.7 million, mainly due to the above mentioned losses at Prima AFP.

In the current quarter, the contributions to Credicorp’s net attributable income from Banco de Crédito BCP and from Pacífico Peruano Suiza, are the results obtained under IFRS rules in U.S. Dollars, net of minority interests and of eliminations for consolidation purposes.

In Section II, BCP reports net income of US$46.6 million, which net of US$2.3 million of minority interest and consolidation adjustments, results in its US$44.3 million contribution.

In the case of PPS (Section IV), its net income according to IFRS is US$2.7 million, of which US$0.3 million for minority interests are deducted to reach its US$2.4 million contribution.

The contribution of Atlantic Security Holding Corporation of US$3.6 million in the current quarter is the same as net income in its own records. Atlantic’s September 2005 year-to-date contribution of US$10.0 million is below US$21.7 million net income shown in its books (see Section III) because of the elimination, for consolidation purposes, of US$11.7 million of dividends received from Credicorp.

Banco Tequendama, which sale was only registered last March 2005 due to regulatory delays, did not contribute to Credicorp’s net income since the fourth quarter of 2004 as its sale price was fixed prior to that period.

I.1 INTEREST INCOME AND OTHER INCOME

Note: For comparison purposes, in periods prior to 2005, income from recoveries of previously charged-off loans, which were reported in the Other non-interest income concept, have been reclassified into the Provision for possible loan losses concept, with no effect on net income. Additional minor reclassifications, also with no effect on net income, have been made affecting the captions of Commissions for banking services, Net premiums earned, and Other expenses.

Net interest income in the third quarter of 2005 was US$114.3 million, increasing over US$93.5 million earned in the third quarter of 2004, mostly due to higher interest earning assets, compounded by an increase in interest margins.

During the current quarter U.S. Dollar loan rates continued their positive trend and increased slightly, widening their spread over deposit rates. During third quarter 2005, the net interest margin (net interest income over average interest earning assets), on an annualized basis, was 5.79%, above 5.19% in the year-ago quarter, and increases also compared to 5.42% in the preceding second quarter.

3


The volume of interest earning assets, as an average of quarter-end balances, reached US$7.9 billion in third quarter 2005, increasing 2.1% during the current quarter and is 9.6% higher compared to US$7.2 billion in the third quarter of 2004, mainly due to higher investments and loans.

Non-interest income, without including premiums and health fees, was US$72.5 million in the third quarter of 2005, 12.0% higher than US$64.8 million in the same period of 2004, principally due to improved results on sale of securities and higher fees on banking services. Non-interest income components were as follows:

 
                3Q05 vs.    3Q05 vs. 
(In US$Mn)  
3Q04 
 
2Q05 
 
3Q05 
 
2Q05 
 
3Q04 
 
Commissions for banking services    49.5    51.6    51.2    -0.7%    3.4% 
Gains from sale of securities    3.2    0.9    7.1    676.1%    122.6% 
Gains from foreign exchange    6.6    7.2    7.6    5.3%    15.4% 
Other non-interest income    5.5    3.5    6.5    87.9%    18.3% 
 
Total Non-Interest Income    64.8    63.2    72.5    14.7%    12.0% 
 

The altogether better results of Credicorp’s banking activities was strong enough to offset the downturn of the insurance business with its drop in earnings compared to the previous year.

Net revenue from the insurance activity, premiums and health fees net of claims and health costs, were as follows:

 
                3Q05 vs   
3Q05 vs 
(In US$ Mn)  
3Q04 
 
2Q05 
 
3Q05 
 
2Q05 
  3Q04 
 
Net premiums earned and                     
     Health fees    66.9    53.2    57.2    7.5%    -14.6% 
Less:                     
 Net claims and health costs incurred    8.7    11.4    9.0    -20.6%    4.5% 
 Increase in costs for future benefits for                     
     Life and health policies    40.0    33.4    34.5    3.5%    -13.6% 
            Sub-total: Claims and costs 
  48.7    44.8    43.5    -2.6%    -10.3% 
 
 Net revenue from insurance activities    18.3    8.4    13.6    61.8%    -25.9% 
 

In the preceding chart, comparing third quarter 2005 figures with the year-ago quarter significant declines are noted which are mainly due to the merger in third quarter 2004 of Novasalud EPS, which was acquired by PPS in March 2004. In third quarter 2004, Premiums and health fees, as well as Claims and health costs, generated by Novasalud from March through August 2004 were retroactively registered in third quarter 2004.

I.2 OTHER NON-INTEREST EXPENSES

Note: For comparison purposes, in prior periods, expense for Legal employee profit sharing, which was previously reported within the Salaries and employee benefits concept, have been reclassified into a separate line item, with no effect on net income.

Other non-interest expenses amounted to US$128.7 million in third quarter 2005, 2.9% over expenses in the same period of the previous year, and increase 11.2% with respect to the preceding second quarter 2005, mainly due to higher provisions for appreciation of stocks awarded under the stock options plan. Credicorp’s other expense components had the following variations:

4


 
   
  3Q05 vs.    3Q05 vs. 
(% change and US$Mn)  
3Q04 
2Q05 
3Q05 
  2Q05    3Q04 
 
Salaries and employee benefits    48.4    49.4    49.6    0.3%    2.4% 
General, administrative, and taxes    37.2    31.6    36.5    15.6%    -1.7% 
Depreciation and amortization    12.4    9.4    9.7    3.4%    -21.2% 
Other    26.5    25.3    32.8    29.8%    23.7% 
Merger costs    0.5    0.0    0.0    N/A    N/A 
 
Total Other Expenses    125.0    115.8    128.7    11.2%    2.9% 
 

In the Merger costs concept, we have a US$0.5 million expense in the 2004 third quarter, which was related with the Solución Financiera de Crédito merger.

Starting with 2005 reports, the determination of the efficiency ratio has been simplified by using only specific line items that are shown in the income statement (see Table No. 2). Additionally, the reclassifications noted at the beginning of this section affected the ratio. The efficiency ratio will be determined based on the following concepts:

- In the numerator or “operating expenses”: i) salaries and personnel expenses, ii) general expenses, and iii) depreciation and amortization.

- In the denominator: i) net interest income, ii) fees and commissions on banking services, iii) gains on foreign exchange transactions, and iv) net premiums earned.

In this way, the efficiency ratio improved from 45.3% to 41.5% comparing the third quarters of 2004 and 2005, respectively.

“Operating expenses” as a percentage of average total assets also improved from 4.5% in third quarter 2004, to 4.0% in the current quarter.

I.3 ASSETS AND LIABILITIES

Credicorp’s totals assets reached US$9.8 billion at September 30, 2005, increasing 3.7% since the end of June 2005, and are 11.3% higher than the balance at September 2004, mainly due to investment portfolio growth and, to a lesser extent, to the loan portfolio growth.

The loan portfolio as of September 30, 2005 reached US$4.7 billion, increasing 2.6% compared to US$4.5 billion in September 2004, but decreases by 3.0% compared to the balance in June 2005.

Loan quality indicators are shown in the following table:

 
(In US$Mn)  
30.09.04 
30.06.05 
30.09.05 
 
Total loans    4,531.6    4,793.4    4,651.3 
Past due loans    215.0    127.4    117.7 
Loan loss reserves(1)   262.4    227.8    203.0 
 
Past due / Total loans    4.8%    2.7%    2.5% 
Reserves / Past due    122.0%    178.7%    172.4% 
 

The balance of past due loans decreased from US$127.4 million to US$117.7 million during the current quarter partly due to charge-offs amounting to US$14.7 million.

 

5


Deposits and other obligations reached US$6.7 billion at September 30, 2005, increasing 8.4% over US$6.2 billion of last September 2004, and by 2.8% from US$6.6 billion at June 2005. Due to banks and correspondents grew 32.6% compared to the balance at September 2004, but slightly declined by 0.8% during this quarter.

Credicorp’s net equity amounted to US$1.2 billion at September 30, 2005, increasing 16.9% compared to equity at September 2004.

Third party funds under management, which amounted to US$2.0 billion at the end of September 2005, increased 8.5% during the current quarter, and are 14.7% higher than funds of US$1.7 billion at September 2004.

I.4 PERUVIAN ECONOMIC SITUATION

Economic Activity

During third quarter 2005 the Peruvian GDP continued with a strong growth rate, sustaining a positive trend that started in the final months of 2004. In the month of July 2005, GDP grew 4.9% and 6.7% in August, growing a cumulative 5.9% in the first eight months of 2005, compared with 4.4% in the same period of 2004. After increasing 6.1% and 5.7% in the first and second quarters, respectively, growth is expected at 6% in third quarter 2005. Growth in total year 2004 was 4.8% .

It is important to note the improved growth prospects of sectors related to domestic demand, like construction, non-primary manufacturing, retail and services. GDP performance was driven by higher activity in non-primary manufacturing (mainly textiles, intermediate and durable goods), oil and natural gas, and the agriculture sub-sector.

Cumulative through August 2005 all GDP sectors grow except Fishing, although the decline is slight at 0.4% . Highest performance is noted in the Oil and Gas sub-sector which grew 35.4%; non-primary manufacturing, up by 8.2%; the agriculture sub-sector, which grew 6.0% due to improved weather conditions; and, the retail sector with 6.6%, construction, that grew 6.2%, and services with 5.7% . Metals mining production, that declined during the first months of the year, due to lower zinc, gold and iron output and a poor performance of copper, recovered through August to a 1.8% increase.

Public Finance

In second quarter 2005, the Public Sector budget had a surplus of 2.7% (of GDP), compared to a surplus of 1.1% in the same quarter of 2004. Given seasonality of public expenditures, a budget deficit is expected to be run in the second half of 2005, and also noting that the fiscal year has a target of a 1.0% deficit. Total 2004 deficit was below the target of 1.5%, resulting at only 1.1% .

The surplus in second quarter 2005 was mainly due to increased Central Government revenue which, after being 14.9% of GDP in second quarter 2004, grew to 16.8% of GDP in this period. This increase exceeded current expense and capital expenditures growth, which remained at 13.0% and 2.3% of GDP, respectively.

Higher revenue is due to increased Central Government tax collections, which cumulative through August 2005 increased 14.2%, in nominal terms, compared with the same 2004 period. It should be noted a 27% increase of Income Tax revenue, mainly from corporations, and the 19% growth in case of tax on imports and the related value-added tax (IGV). Through August 2005, non-financial expenses increased 9% (nominal), while capital expenses grew 5%.

Prices and Devaluation

 

6


In the third quarter of 2005, the consumer price index (“IPC”) in Peru decreased 0.2%, compared to increases of 0.5% both of the first two quarters of this year, with which inflation reached 0.9% in the first nine months of 2005. Inflation was 1.1% in the twelve months prior to September 2005, remaining by the bottom of the range of 1.5% to 3.5%, targeted by the Central Bank for total 2005. Deflation in the current quarter, was mainly due to lower food prices, but were partly offset by price increases of certain public services, mainly communication and transportation.

The wholesale price index (“IPM”) increased 1.3% in third quarter 2005, higher than 0.6% and 0.3% in the preceding two quarters. The IPM grew 2.2% in the first nine months of 2005. In the current quarter local and imported components of the wholesale price index grew at approximately the same rate.

The average bank market Nuevos Soles exchange rate in Peru was S/.3.344 at September 30, 2005, increasing 2.8% during the quarter, compared to declines of 0.3% and 0.6% in the preceding two quarters. The exchange rate devalues 1.9% from S/.3.282 at the end of December 2004. The currency devalued mostly during September, month during which no Central Bank intervention in the currency market was required, and when its net purchases of foreign exchange amounted to only US$33 million. During 2005, cumulative purchases of foreign exchange, through September, reached US$3,130 million, compared to US$2,340 million purchased during total 2004.

International Reserves

International reserves of the Central Bank decreased during third quarter 2005, due in part to the pre-payment of foreign debt to Paris Club countries. Reserves reached US$13,695 million at September 30, 2005, compared to US$13,818 million at June 2005, but they continue above reserves of US$12,631 million at December 31, 2004.

The Trade Balance had a US$2,962 million cumulative surplus in the eight month period through August 2005, increasing compared to a US$1,644 million surplus in the same period of 2004. Cumulative through August 2005, exports grew 36% versus a 25% increase in imports. Exports, which reached US$10,754 million as of August 2005, grew on increased volume and prices, especially of molybdenum, copper, oil and gas, and non-traditional textiles, agricultural and fishing exports. Imports through August 2005 amounted to US$7,792 million, increasing mainly due to higher imports of durable goods and raw materials, while consumer goods also increased significantly.

Financial System

Commercial bank’s deposit volumes continued a positive growth trend during third quarter 2005, based on U. S. Dollar figures translated at historical exchange rates, while loan balances had a slight decline. Deposits at September 30, 2005 in the twelve operating commercial banks in the system, including their foreign branches, reached US$16.0 billion, according to the Asociación de Bancos del Peru (ASBANC), higher by 1.5% compared to deposits at June 30, 2005, in Dollar terms, and grew by 12.1% compared to the year-ago balance at September 30, 2004.

As of September 30, 2005, total loans in the banking system were US$11.7 billion, 0.8% lower than loans at June 30, 2005, but grow 12.0% over September 30, 2004 loan balances. In the current quarter, local currency loans, that were 26.1% of total loans (23.6% at September 2004), grew 7.0% since last June to reach US$3.1 billion, while foreign currency loans decreased 3.3% to US$8.7 billion.

As of September 30, 2005, the Peruvian bank's past due ratio was 2.7%, improving from the 3.0% rate in June 2005 and from 4.6% in September 30, 2004. Commercial banks’ past due loans decreased 11.4% since last June to US$318 million, and are lower by 34.5% compared to bad loans at September 30, 2004. At September 30, 2005, loan loss provisions were US$656 million, decreasing 8.5% during the current quarter. The system-wide past due loan coverage ratio was

7


206.6% at September 30, 2005, improving from 200.0% as of June 2005, and is also higher than the ratio of 155.7% at September 30, 2004.

Interest rates

During the third quarter 2005 while commercial banks’ interest rates on loans and deposits in local currency remained almost unchanged, foreign currency interest rates continued with a slight increasing trend. Local currency average loan rates (TAMN) slightly decreased to 25.8% in third quarter 2005, from 25.9% in the preceding second quarter. Local currency deposits rates (TIPMN) remained almost unchanged at 2.6% . In the year-ago third quarter of 2004, TAMN was 25.1% and TIPMN was 2.4% .

During third quarter 2005 foreign currency loan rates (TAMEX) increased to 9.9%, from 9.6% in the preceding second quarter, while deposit rates (TIPMEX) increased to 1.6% from 1.4%, respectively. In the year-ago third quarter of 2004, TAMEX was 8.9% and TIPMEX was 1.1% .

Private Pension Funds and Mutual Funds

Managed assets in private pension funds continued increasing and grew 13.2% in the third quarter of 2005, in U.S. Dollar terms, reaching US$9.6 billion as of September 30, 2005, after increasing 3.8% in the second quarter of 2005, and are 31.7% higher than funds at September 2004. In the twelve months prior to September 2005, the funds had a return of 18.5% in real terms.

Mutual funds balances grew for the second consecutive quarter, after suffering declines in prior periods due to volatility of prices and valuations in capital markets and to the increase in interest rates. Total mutual funds amounted to US$2.0 billion at the end of the third quarter 2005, increasing 5.3% in the quarter, and are 10.5% above the balance at September 2004. Total funds had a return in Dollar terms of 0.6% in the quarter, and of 3.5% during the year since September 2004.

8



II. BANCO DE CREDITO DEL PERU AND SUBSIDIARIES (“BCP”)

II.1 NET INCOME

From financial statements prepared according to IFRS rules and in U.S. Dollars, consolidated net income in the first nine months of 2005 was US$136.4 million, 53.8% higher than profits of US$88.7 million in the same period of 2004. Net income in the third quarter of 2005 was US$46.6 million, increasing 40.2% compared with net income of US$33.3 million in the same year-ago quarter, and are 5.3% above profits of US$44.3 million in the preceding second quarter 2005.

September year-to-date net income and third quarter 2005 net income improve compared to the same prior year periods mainly due to higher net interest income and increased non-financial income. These improvements offset increases in operating expenses, income taxes, and the translation loss.

In the current quarter a translation loss of US$5.2 million is reported, compared to a loss of US$0.8 million in the year-ago quarter. See II.9. --Note on Inflation Adjusted Accounting.

Financial income continued increasing during the current quarter principally due to higher volume of investments, while loan volume remained almost unchanged combined with higher NIM.

Cumulative through September 2005 and in third quarter 2005, loan loss provisions had a net positive effect on results, due to recoveries exceeding required reserve additions. Loan quality continued to improve, with the past due ratio declining to 2.6% in September 2005, and past due coverage increasing to 175.2% .


BANCO DE CREDITO DEL PERU AND SUBSIDIARIES

SUMMARY OF RESULTS (1)

(In U.S.$ millions, except net income per share)

 
    Three months ended  
Nine months ended
   
   
30.09.04 
30.06.05 
30.09.05 
30.09.04 
30.09.05 
 
Net interest income    77.8    91.8    100.1    228.0    283.2 
Provisions for loan losses, net    1.8    0.9   
(3.0)
  8.9    (5.2)
Other income    59.2    61.3    70.6    163.9    191.2 
Other expenses    90.6    94.0    99.2    260.8    282.0 
Merger costs    0.5    0.0    0.0    3.7    0.0 
Translation result   
(0.8)
  0.4   
(5.2)
  1.4    (4.4)
 
Income before income tax    43.3    58.6    69.3    119.9    193.2 
Employee profit sharing(2)   1.6    1.7    3.6    4.2    8.2 
Income Tax    8.4    12.5    19.1    27.0    48.6 
Net Income    33.3    44.3    46.6    88.7    136.4 
Net income contributed to Credicorp    32.0    42.6    44.2    85.3    130.5 
 
(1) Financial statements prepared according to IFRS, in U.S. Dollars. 
(2)Previously reported as part of personnel expenses. 
(3) Based on 1,287 million outstanding shares in all periods. 

9


II.2 NET INTEREST INCOME

Interest income, net of interest payments, in the third quarter of 2005 reached US$100.1 million, increasing 28.7% compared to US$77.8 million net interest income in the same period of last year, and grew 9.0% compared to net interest income in the preceding second quarter.

Increased net interest income, compared to the year-ago third quarter, is mostly due to higher average interest earning assets, combined with net interest margin growth. Average interest earning assets reached US$7.0 billion during third quarter 2005, a 15.1% growth comparing with the third quarter of last year, mainly due to growth of the loan portfolio and investments. Interest earning assets grew 1.7% compared to the average in the preceding second quarter, mainly due to higher investments and available funds.

During the third quarter of 2005, the net interest margin was 5.72%, higher than 5.34% in the preceding second quarter, and also increases from 5.12% during the third quarter of 2004. During the current quarter, the net interest margin grew mostly due to higher U.S. Dollar loan rates, following international trends, while deposit rates grew at a slower pace. Both, loan and deposit rates in local currency declined, with the net interest margin in this currency remaining almost unchanged.

II.3 NON-INTEREST INCOME

Note: For comparison purposes, in periods prior to 2005, income from recoveries of previously charged-off loans, which were reported in the Other non-interest income concept, have been reclassified into the Provision for possible loan losses concept, with no effect on net income.

Non-interest income, which include fee revenue and other non-interest items, in the third quarter of 2005 amounted to US$70.6 million, 19.1% higher than US$59.2 million earned during the third quarter of 2004, mostly due to higher gains on securities transactions, increased revenue on banking services and recoveries of provisions on foreclosed assets.

In the third quarter of 2005, fees from banking services amounted to US$53.5 million, 7.6% higher than fees in the same period of 2004, due to increased revenue in various concepts, being noteworthy those of credit and debit cards, fund transfers and for loan disbursement fees.

In the quarter, fees on the most important banking services had the following growth rates:

10


 
(In US$ Mn.)  
3Q04 
3Q05 
Growth 
 
Savings accounts    5.8    6.2    6.1% 
Demand deposits    6.6    6.7    2.2% 
Credit cards    6.1    6.4    5.2% 
Fund transfer services    4.4    5.2    17.6% 
Collections fees    3.7    4.0    7.8% 
Billings and payments    3.9    4.3    10.6% 
Contingent and foreign trade    2.6    2.7    5.8% 
Contingent credits    2.0    2.2    7.4% 
Debit cards    1.7    2.6    56.5% 
Corporate Finance    3.1    1.6    -47.7% 
Brokerage    3.6    2.8    -22.0% 
Commercial loans    1.1    2.0    77.4% 
Insurance    1.2    1.3    9.5% 
Mortgage loans    0.5    0.8    68.5% 
Channels and services    0.5    0.6    18.9% 
Master account    0.4    0.4    -10.1% 
Personal loans    0.3    0.2    -25.1% 
Micro-business credit    0.5    0.7    31.1% 
Other    1.8    2.8    57.3% 
    Total 
  49.7    53.5    7.6% 
 

In the third quarter of 2005, securities transactions resulted in a gain of US$4.8 million, compared with gains in the 2004 3Q of US$1.6 million. The general index of the Lima Stock Exchange, after declining 2.9% in second quarter 2005, increased 25.6% in the third quarter, which compares with the increase of 13.6% in the same year-ago period.

Gains from foreign exchange operations, which are the result of the foreign exchange buy-sell margin, were US$7.6 million in the third quarter of 2005, 18.7% higher than revenue in the same quarter of 2004, mainly due to increased transactions volume, which offset a slight decrease in the buy-sell margins.

The Other Income caption, that mainly registers reversals of prior year expenses and provisions and recoveries of certain operating costs, increased from US$1.5 million in the third quarter of 2004 to US$4.6 million in the current period, mostly due to recoveries of provisions for lower value of foreclosed assets.

II.4 OTHER NON-INTEREST EXPENSES

Note: For comparison purposes, in prior periods, expense for Legal employee profit sharing, which was previously reported within the Salaries and employee benefits concept, has been reclassified into a separate line item, with no effect on net income.

Non-interest expenses during the third quarter of 2005 were US$99.2 million, 8.8% above US$91.1 million in the same period in 2004, mainly because of an increased Other expense caption.

In this quarter, approximately 38% of non-interest expenses were attributable to employee salaries and other expenses related to personnel, which increased 3.8% to US$37.9 million, when compared to the third quarter of 2004. At the end of September 2005 the number of employees stood at 7,494, decreasing from 7,575 employees as of June 2005, and also compared to 7,667 employees at September 2004, mainly due to reduced positions in retail offices.

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General and Administrative expenses, which represented 30% of non-interest expenses, reached US$30.0 million in the third quarter of 2005, growing 5.2% compared to expenses in the 2004 period. In the current quarter, higher expenses are mostly related to third party fees and marketing. In this quarter, the most significant general and administrative expenses were:

 
(In US$ Mn.)  
3Q04 
3Q05 
Chnge. 
 
Office supplies and operating costs    3.5    3.8    9.1% 
Communications    2.4    2.0    -16.0% 
Third party fees    4.0    5.6    40.4% 
Insurance and security    2.0    1.9    -6.1% 
Transport of currency and securities    3.7    3.5    -5.2% 
Systems and maintenance    6.0    5.6    -6.4% 
Advertising and marketing    4.4    4.9    11.2% 
Other G&A    2.5    2.7    6.7% 
      Total G&A 
  28.5    30.0    5.2% 
 

The Other caption within Other Non-Interest Expenses, increased from US$12.9 million in the third quarter of 2004 to US$19.4 million in the current quarter, mainly due to higher provisions for appreciation of stocks awarded under the stock option plan.

Starting with 2005 reports, the determination of the efficiency ratio has been simplified by using only specific line items that are shown in the income statement (see Table No. 5). The efficiency ratio will be determined from the following concepts:

- In the numerator or “operating expenses”: i) salaries and personnel expenses, ii) general expenses, iii) depreciation and amortization, and iv) taxes other than income taxes.

- In the denominator: i) net interest income, ii) fees and commissions on banking services, and iii) gains on foreign exchange transactions.

The Efficiency ratio improved from 58.0% to 49.5% comparing the third quarters of 2004 and 2005, respectively.

The ratio of “operating expenses” as a percentage of average total assets, also improved from 4.5% third quarter 2004 to 4.0% in the current period.

As mentioned in the note at the beginning of this section, the profit sharing expense was reclassified, decreasing operating expenses. Prior period ratios have been recalculated accordingly.

II.5 ASSETS AND LIABILITIES

Total assets of BCP reached US$8.2 billion at the end of September 2005, growing 2.7% with respect to June 2005, and by 17.6% compared to assets at September 2004, mainly due to higher investments and increased performing loans.

Consolidated total loans were US$4.5 billion at the end of September 2005, decreasing 2.7% during the current quarter, but are 9.5% above loans at September 2004.

At September 30, 2005, the loan portfolio, net of provisions, represented 52.2% of total assets, lower than 54.9% at the preceding quarter. At the end of the third quarter of 2005, the Nuevos Soles portion of the loan portfolio was 18.6%, higher than 16.7% in June 2005, and is also over 16.9% at September 2004.

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As of September 30, 2005 total deposits, which do not include bonds and subordinated debt (see Table No. 6), were US$6.2 billion, increasing 1.3% compared to second quarter 2005 deposits, and are 12.9% over deposits in the year-ago quarter.

During the third quarter 2005, both demand deposits and savings deposits increased 1.4%, while time deposits increased by 1.2% . Deposits denominated in Nuevos Soles were 27.6% of total deposits, decreasing during the current quarter from 28.0% at June 2005, but remains over 23.4% at the end of September 2004.

BCP's subsidiaries had the following loan, net of provisions, and deposit contributions:

 
   
Loans, net 
  Total Deposits 
 
(In % and US$ Mn.)  
30.09.04
  30.06.05   30.09.05   30.09.04   30.06.05   30.09.05
 
Banco de Crédito del Perú    88.1%    88.9%    88.5%    91.8%    91.8%    91.9% 
Banco de Crédito de Bolivia    7.0%    6.8%    7.2%    5.7%    5.8%    5.7% 
Crédito Leasing    4.9%    4.3%    4.3%    2.5%    2.4%    2.4% 
 
TOTAL%    100.0%    100.0%    100.0%    100.0%    100.0%    100.0% 
                       Total BCP    US$3,817    US$4,376    US$4,278    US$5,466    US$6,089    US$6,169 
 

Loan Portfolio

Loan portfolio composition by business segment developed as follows:

 
(In % of total and US$ Mn)   30.09.04    30.06.05   
30.09.05 
 
Corporate    41.6%    40.6%    39.0% 
Middle market    26.1%    26.0%    25.0% 
Retail:    32.3%    33.4%    36.0% 
- small business    9.0%    8.8%    9.9% 
- home mortgage    16.3%    17.3%    18.0% 
- consumer    3.3%    3.6%    4.0% 
- credit cards    3.7%    3.7%    4.1% 
Total    100.0%    100.0%    100.0% 
                               Total Loans    US$4,090   
US$4,601 
 
US$4,479 
 

During the current quarter, loan balances decreased 2.7%, where middle market loans declined by 6.4% to US$1,119 million, and corporate loans decreased by 6.7% to US$1,745 million, while retail loans increased by 5.2% to US$1,615 million. Retail loans by product performed as follows:

 
                30.09.05 vs    30.09.05 vs 
(% change and US$ Mn)  
30.09.04 
30.06.05 
30.09.05 
  30.06.05    30.09.04 
 
Small business loans    366    403    442    9.50%    20.61% 
Mortgage loans    668    797    806    1.09%    20.62% 
Consumer loans    137    166    179    7.91%    30.60% 
Credit card loans    150    169    189    11.83%    26.05% 
                   Total Retail    1,321    1,535    1,615    5.22%    22.27% 
 

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Contingent Credits and Managed Funds

At September 30, 2005 contingent credits were US$2,868 million, 20.7% above the June 2005 figure, mainly due to increased foreign currency forwards operations, as shown in the next chart:

 
                30.09.05 vs    30.09.05 vs 
(% change and US$ Mn)  
30.09.04 
30.06.05 
30.09.05 
  30.06.05    30.09.04 
 
- Guarantees and Stand-by LCs    579    644    640    -0.5%    10.7% 
- Letters of Credit    164    249    173    -30.5%    5.7% 
- Acceptances    49    38    51    32.9%    3.6% 
- Foreign currency forwards    344    597    1,130    89.3%    228.9% 
- Other contingent accounts    516    849    874    3.0%    69.3% 
Total Contingent Credits    1,651    2,377    2,868    20.7%    73.7% 
 

Third party funds managed by several subsidiaries of BCP amounted to US$1,044.6 million as of September 30, 2005, increasing 5.0% compared to funds at June 2005.

Market share

According to preliminary statistics from the Peruvian Banking Association (ASBANC) for Peruvian commercial banks as of September 30, 2005, Banco de Crédito del Perú had a total loan market share of 33.6% (34.5% at June 30, 2005 and 34.0% at September 30, 2004), and 37.1% of deposits (36.6% at June 30, 2005 and 36.1% at September 30, 2004).

BCP’s market share in Peruvian mutual funds, through its subsidiary Credifondo, was 50.3% as of September 30, 2005 (50.5% at June 30, 2005 and 51.6% at September 30, 2004).

II.6 LOAN QUALITY

The ratio of past due loans as a percentage of total loans improved to 2.6% at September 30, 2005, from 2.7% at June 2005, and also compared to the ratio of 5.0% at September 2004. The ratio of past due, refinanced and restructured loans as a percentage of total loans improved to 6.6% during third quarter 2005 from 7.3% in June 2005, and also compared to 9.9% at September 2004.

Consolidated past due loans amounted to US$114.2 million at September 30, 2005, decreasing 7.7% from the balance of US$123.7 million at June 2005, and are also 44.0% below US$203.7 million past due loans at September 2004.

At the end of September 2005, refinanced loans amounted to US$182.1 million, lower than the balance at June 2005 that was US$212.7 million, and also compared to the balance of US$200.1 million in third quarter 2004.

At the end of the third quarter 2005, outstanding balances of loan loss provisions totaled US$200.0 million, decreasing 11.0% compared to the balance at June 2005, and also decreases 26.8% with respect to September 2004, mainly due to charge-offs.

The coverage ratio of loan provisions to past due loans was 175.2% at the end of third quarter 2005, lower than 181.7% at June 2005, but improves compared to 134.1% in the year-ago quarter. The coverage ratio of provisions over the sum of past due loans and refinanced loans was 67.5% in September 2005, higher than 66.8% at last June, but remains similar to 67.7% in September 2004.

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Of total provisions outstanding at the end of the current quarter, US$60.3 million correspond to generic provisions assigned to loans in the Normal (A) risk category, increasing from the balance at September 30, 2004 of US$50.6 million.

Loans believed to be unrecoverable, fully provisioned in prior periods, were charged-off during the third quarter 2005 amounting to US$14.7 million, of which approximately 56% were related to consumer and mortgage loans. This compares to charge-offs in the second quarter of 2005 of US$23.0 million, and US$22.5 million in the year-ago third quarter.

Loans classified as Substandard (i.e., Deficient, Doubtful and Loss) were 7.0% of the loan portfolio in September 2005, decreasing from 8.3% in June 2005 and from 12.2% in September 2004. The loan classification is as follows:

 
(% of Total loans and US$Mn)   30.09.04    30.06.05   
30.09.05 
 
A:    Normal    79.7%    84.1%    86.2% 
B:    Potential Problem    8.1%    7.6%    6.8% 
C:    Deficient    4.8%    2.9%    2.1% 
D:    Doubtful    4.4%    3.6%    3.3% 
E:    Loss    3.0%    1.8%    1.6% 
   
Total 
  100.0%    100.0%    100.0% 
    Total Loans    US$4,090    US$4,601   
US$4,479 
 

Loan loss provision expense, net of recoveries, had a positive effect of US$3.0 million in third quarter 2005, with recoveries of previously charged-off loans exceeding provision requirements, due to improved loan quality. In the year-ago third quarter of 2004, net provisions resulted in an expense charge of US$1.8 million, while in the preceding second quarter 2005 the provision expense was US$0.9 million. In third quarter 2005, recoveries of charged-off accounts, which are shown within the net loan loss expense caption, amounted to US$6.5 million, compared to recoveries of US$4.3 million in the same year-ago period, and US$4.6 million in the preceding second quarter.

II.7 CAPITAL ADEQUACY

At the end of the third quarter of 2005, BCP’s unconsolidated ratio of risk-weighted assets to regulatory capital was 8.0 to 1.0 (12.4%), while the corresponding consolidated ratio was 7.1 to 1.0 (14.0%) . Peruvian regulations limit risk-weighted assets, including market-risk exposure, to a ratio of 11.0 to 1.0 (9.1%) .

At September 30, 2005, risk-weighted assets include US$193.8 million of market-risk exposure (US$283.2 million at September 2004) whose coverage required US$17.6 million of regulatory capital.

As of September 30, 2005, BCP’s consolidated “regulatory capital” was US$699.9 million, remaining similar to the preceding quarter. Regulatory capital included US$41.1 million of subordinated debt in the current period, remaining almost unchanged since June 2005, and also to the September 2004 balance.

 
    BCP unconsolidated    BCP consolidated 
     
(In US$ Mn.)   30.09.04    30.09.05    30.09.04    30.09.05 
         
Regulatory capital    551.0    557.4    682.4    699.9 
Risk weighted assets    4,352.6    4,484.4    4,828.1    4,996.9 
 
Weighted assets / Capital    7.9    8.0    7.1    7.1 
Capital / Weighted Assets    12.7%    12.4%    14.1%    14.0% 
 

 

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II.8 BANCO DE CREDITO DE BOLIVIA (BCB)

Below are brief comments on the Bolivian subsidiary, which is consolidated within BCP:

Bolivian economic activity

It is expected that Bolivian economic activity will continue a moderate recovery during 2005. GDP growth reached 4.0% during the first and second quarters of 2005. GDP growth improved from 2.5% in 2003, to 3.6% in 2004, and should exceed 4% during 2005.

Higher growth is mainly due to increased exports of minerals, oil and gas, and of agricultural products, while domestic demand and consumption remained stagnant. Cumulative through August 2005, exports grew 19% to US$1,730 million, generating a trade surplus of US$265 million. Through August, imports amounted to US$1,465 million, growing 25% due to higher imports of raw materials and capital goods.

During third quarter 2005 inflation was negligible, compared to 1.8% in the preceding second quarter, and reached 5.5% in the year ended in September 2005. In June 2005 inflation was affected by massive protests that interrupted road transport. Nevertheless, the exchange rate strengthened during the current quarter, declining to 8.08 Bolivianos per Dollar at September 30, 2005, from 8.10 in June, and is only slightly above the 8.05 exchange rate at the beginning of the year.

Bolivian banking system

Banking deposits grew to US$2,840 million at September 2005, from US$2,672 million in June 2005, and from US$2,559 million at the beginning of the year.

Loan volume in the banking system increased during the current quarter to US$2,581 million as of September 2005, growing 1.0% over loans of US$2,556 million at June 2005, and are 6.7% over loans of US$2,420 million at year-end 2004. The System-wide past due loan ratio was 13.7% in September 2005, lower than 14.0% in December 2004. The coverage of past-due loans with provisions decreased to 74.7% at September 2005, from coverage of 84.3% in December 2004.

BCB highlights

BCB’s market share in deposits at September 2005 was 13.2%, increasing from 13.0% at the end of December 2004. In terms of loans, BCB had a 13.0% market share at September 2005, slightly below 13.1% it had last December 2004. In this way, BCB remained in the fourth position in terms of deposits and loans, out of twelve banks in the system.

As of September 30, 2005, BCB had total loans of US$335.4 million, increasing from US$320.8 million in December 2004. Loan quality continued to improve. At the end of the third quarter 2005, BCB’s past due loans reached US$23.1 million, or 6.9% of total loans, lower than 11.0% at December 2004. Coverage of past due loans with loan loss provisions was 116.4% as of September 2005, increasing from 100.6% in December 2004. Net equity at the Bolivian subsidiary amounted to US$61.9 million as of September 2005, increasing from US$59.8 million at the beginning of the year.

Cumulative through September 2005, net loan loss provisions resulted in a positive effect in net income of US$0.3 million, compared also to a US$0.7 million net positive recovery during the first nine months of 2004.

In BCB´s own records, net income in third quarter 2005 was US$3.5 million and of US$2.1 million in the preceding second quarter, compared to US$1.1 million in each of the corresponding year-ago quarters.

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BCB’s main financial figures are shown in the following chart.

Banco de Crédito de Bolivia (“BCB”)
Key Financial Figures

 
(In US$Mn)   30.09.04    30.06.05    30.09.05 
       
Total Loans    301.9    325.4    335.4 
Past-due loans    42.9    28.0    23.1 
Loan loss reserves    35.7    29.4    26.9 
Total assets    431.7    469.1    493.0 
Deposits    334.4    371.0    379.2 
Net equity    57.5    58.5    61.9 
 
Net income, cumulative    2.6    3.0    6.5 
 
Past-due loans / Total loans    14.2%    8.6%    6.9% 
Loss reserves / Past-due loans    83.3%    105.2%    116.4% 
 

II.9 NOTE ON INFLATION ADJUSTED ACCOUNTING

Inflation adjustment accounting rules were required by Peruvian GAAP until December 31, 2004. Starting January 1st, 2005, Peruvian authorities decreed the suspension, with legal and tax effects, of further inflation adjustments, which is a consequence of international guidelines for low inflation countries as experienced recently in Perú.

Following the elimination of inflation adjusted accounting, starting with fiscal 2005 Credicorp and its subsidiaries report their financial statements prepared in accordance with IFRS and in U. S. Dollars.

The inflation adjustment index, based on the wholesale price inflation, and the exchange rate, are shown in the following chart:

 
    30.09.04    30.06.05    30.09.05 
       
Inflation – wholesale prices             
           (last twelve months)   6.0%    1.0%    2.2% 
Inflation adjustment index             
           (at December 31, 2004)   1.000    1.000    1.000 
 
Exchange rate (Soles per US$1)   S/.3.342    S/.3.253    S/.3.344 
Devaluation / (revaluation)            
           (last twelve months)   (4.02)%    (6.28)%    0.06% 
 

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III. ATLANTIC SECURITY HOLDING CORPORATION AND SUBSIDIARIES (“ASHC”)

Net Income

In the first nine months of 2005, Atlantic contributed US$10.0 million to Credicorp’s consolidated net attributable income, above US$9.3 million contributed in the same period in 2004. In the quarter ended September 30, 2005, Atlantic contributed US$3.6 million to consolidated profits, higher than US$2.8 million contributed in the year-ago third quarter. Improved net income is mainly due to higher non-interest income that offset decreased financial income.

For September year-to-date, ASHC’s records show net income of US$21.7 million, higher than its US$10.0 million contribution, due to the elimination in the consolidation process of dividends received from Credicorp of US$11.7 million.

Financial and non-financial income

Net interest income, before risk provisions and not including dividend income, was US$3.0 million in the third quarter of 2005, below US$3.4 million in the same quarter of last year. Net interest income as a percentage of interest earning assets, without considering dividends, was 1.5% during third quarter 2005, lower than the 1.9% margin in the third quarter 2004, and also compared to 1.6% margin in the preceding second quarter. Compared with the year-ago quarter, the margin decreased mainly because during 2004 the investment portfolio grew its lower risk and lower return segments, compounded by higher funding costs due to increasing interest rates.

During the third quarter of 2005 provision charges against income for market risk amounted to US$200 thousand, while no credit risk provision was required. In the year-ago third quarter no provision was required.

Non-interest income, which includes fee income, realized gains on securities transactions before risk provisions and others, amounted to US$2.7 million in the third quarter of 2005, higher than US$1.3 million in the same year-ago quarter, mainly due to increased gains on securities. Fee income was US$1.2 million in the current period, compared to US$1.0 million fee revenue in the year-ago quarter.

The ratio of operating expenses over average assets improve to 0.8%, annualized, in the third quarter of 2005, from the ratio of 0.9% in the same period in 2004. This ratio declines to 0.4% in third quarter of 2005, when funds under management are included within total assets, lower than 0.5% in the year-ago quarter.

Assets and liabilities

The loan portfolio, net of provisions, was US$130.6 million as of September 30, 2005, decreasing compared to US$154.5 million at the end of September 2004. As of September 30, 2005, the loan portfolio had no past dues, improving from a 2.4% past due ratio at September 2004.

The securities portfolio increased to US$618.8 million at September 2005, from US$500.5 million last September 2004, and also grew compared to US$555.5 million at the end of June 2005.

Deposits amounted to US$821.3 million at September 30, 2005, increasing from the balance of US$688.7 million at the end of the year-ago third quarter, and also compared to US$747.1 million at the end of June 2005.

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Funds under management were US$900.5 million at September 30, 2005, 27.0% higher than US$708.8 million at September 2004, and grew 12.9% compared to US$797.3 million at June 2005, mostly due to additions to the client base as well as to higher valuations of the portfolio.

Net equity reached US$161.8 million at the end of September 2005, increasing over US$146.5 million at September 2004, due to current period’s earnings and net of US$10.0 million dividends paid to Credicorp in second quarter 2005. The equity account of reserves for market value of investments amounted to US$9.0 million at the end of September 2005, increasing from US$7.7 million at the beginning of the quarter, but remains similar to the balance at September 30, 2004.

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IV. EL PACIFICO-PERUANO SUIZA AND SUBSIDIARIES (“PPS”)

Net income

Based of IFRS accounting principles, in U.S. Dollars, PPS contributed to Credicorp in the first nine months of 2005, a net income of US$4.7 million, compared to US$9.3 million in the same year-ago period. Contributed net income in the third quarter of 2005 was US$2.4 million, improving from US$0.1 million in the preceding second quarter 2005, but declines compared to US$3.0 million in the third quarter of 2004.

In the first nine months of 2005, net income decreased compared to the same 2004 period, mainly due to higher claims on marine hull risks.

Comparing third quarter figures with the same year-ago quarter, significant declines are noted in Premiums and health fees, as well as in Claims and health costs, which are mainly because results in August 2004 included retroactively operations from March though July of Novasalud EPS. Novasalud EPS was acquired in March 2004, and merged with Pacífico Salud in August 2004.

Revenue and operating expense

Total premiums and Pacífico Salud health fees in the third quarter of 2005 were US$88.6 million, 15.3% lower than premiums of US$104.5 million in the same year-ago quarter. The decline is due mainly to the merger of Novasalud EPS which caused, as mentioned above, the registering of US$24.0 million in fees for operations from March through July 2004. Without considering this effect, total premiums grew 10.1% .

Retained premiums decrease 2.9% to US$72.4 million compared to the preceding second quarter 2005, and are 18.0% lower than retained premiums in third quarter 2004.

Cumulative through September 2005, net premiums earned and health fees, net of reinsured premiums and reserves, were US$166.5 million, increasing 15.0% compared to the same prior year period.

Additions to technical reserves for premiums grew by US$14.4 million in the third quarter of 2005, 29.3% lower than additions in the preceding second quarter 2005, and also 21.0% lower compared to reserve additions in the third quarter of last year. Most of reserves in the third quarter of 2005 were established by Pacífico Vida, for its life annuities and life insurance lines.

Net consolidated underwriting results was US$6.4 million in the third quarter of 2005, decreasing from US$11.9 million in the same prior year quarter, but improves from US$2.0 million in the preceding quarter. Cumulative through September 2005, net consolidated underwriting results reached US$15.6 million, 26.8% below the year-ago period, mostly due to higher claims in the current year. As of September 2005 claims reached US$129.0 million, higher than US$104.4 million in the first nine months of 2004.

The ratio of net underwriting results (net premiums and health fees less reserves and claims as a percentage of total premiums) was 7.2% in the third quarter of 2005, higher than 2.2% in the preceding second quarter, but is below the 11.4% ratio in the 2004 3Q.

Financial results reached US$9.4 million in third quarter 2005, lower than US$10.2 million in the preceding second quarter, but increases compared to US$9.0 million in third quarter 2004.

20


Exchange difference resulted in a loss of US$0.3 million in third quarter 2005, compared to the loss of US$0.6 million in the same period of 2004.

Operating expenses over net premiums earned, decreased from 19.8% to 18.9% comparing the third quarters of 2004 and 2005, respectively. The ratio of operating expenses over average assets declined from 8.8% to 5.8%, in these same periods.

Business lines

Comparing cumulative results through September 2005 and 2004, consolidated total premiums and fees consisted of:

i)      general insurance lines, amounting to 46.9% of total premiums and grew 4.4%;
ii)      fees at Pacífico Salud, were 21.7% of total premiums and increased 12.5%; and,
iii)      Pacífico Vida, which amounted to 31.4% of the total and decreased 1.0%.

Cumulative through September 30, 2005, growth of Pacífico Salud and the health and medical assistance insurance line (31.4% of total premiums) was 12.5%; fire insurance lines (12.8% of total premiums) decreased 7.6%; while the automobile insurance line (5.3% of total premiums) grew 6.5% compared to the prior year period.

Through September 2005, group life insurance and individual life insurance policies (11.5% of total premiums) grew 17.3%; life annuities (12.2% of total premiums) decreased 25.8%, because of the very high level in the past year which was favored by the change in early retirement rules; while pension fund benefits insurance (6.5% of total premiums) increased 44.4%, compared to the prior year.

Claims

Net insurance claims and health services costs incurred in the third quarter of 2005 were US$43.6 million, decreasing from claims of US$44.8 million in the preceding second quarter of 2005, and also from US$48.6 million in the same year-ago quarter.

The net loss ratio (net claims to net premiums) increases to 75.1% in the current quarter from 71.7% in third quarter 2004, but is lower than 82.5% in second quarter 2005. The september year-to-date net loss ratio, increased from 72.1% in 2004, to 77.5% in 2005.

Increased net loss ratio is mostly explained by the increase in the Pacífico Salud portfolio which had a higher claims ratio of 86.5% . During third quarter 2005 high loss ratios were reported for property and liability (102.6%), health (89.4%), and in Pacífico Salud (86.5%) .

The combined ratio (the sum of net claims and health services, general expenses and commissions, as a percentage of net earned premiums and health fees, without including Pacifico Vida) increased from 94.1% in the third quarter of 2004 to 95.1% in the current quarter, but improves from 108.7% in second quarter 2005.

Assets and investments

Investments in real estate and financial assets were US$623.2 million at the end of September 2005, increasing 35.2% from the year-ago balance of US$461.0 million.

As of September 30, 2005, total assets were US$802.8 million increasing 21.7% compared to the year-ago balance. At the end of the current period net equity amounted to US$195.8 million, 38.7% above net equity at September 2004, mainly due to higher valuation of investments.

21


Market share

The Peruvian insurance market, cumulative through August 31, 2005, had total premiums of US$656.8 million, increasing 10.7% compared to premiums in the same eight month period in 2004. For the first eight months of 2005, PPS's market share in total premiums was 28.1% (30.5% in the same year-ago period), with the share in general risks and health lines being 30.7% (32.6% in the same period of 2004) and in life insurance and pension fund benefits lines of 24.9% (27.9% in the same period of 2004). PPS’s decreased market share is partly due to the lower shares in SOAT (mandatory auto insurance) and aviation insurance lines, and to the decrease in life annuities during 2005.

*** 8 Tables To Follow ***

22


CREDICORP LTD. AND SUBSIDIARIES
Table 1
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars)

 
    As of 
   
ASSETS    Set. 30, 2004    Dec. 31, 2004    Jun. 30, 2005    Set. 30, 2005 
         
CASH AND DUE FROM BANKS                 
 Cash and non interest bearing deposits in banks    278,249    264,218    305,772    308,715 
 Interest bearing deposits in banks    1,543,537    1,575,241    1,240,174    1,453,358 
    1,821,786    1,839,459    1,545,946    1,762,073 
 
MARKETABLE SECURITIES, net    83,749    82,513    23,745    88,829 
 
LOANS    4,531,648    4,587,997    4,793,375    4,651,259 
 Current    4,316,616    4,427,626    4,665,940    4,533,513 
 Past Due    215,032    160,371    127,435    117,746 
 Less - Reserve for possible loan losses    (262,412)   (253,408)   (227,750)   (202,985)
LOANS NET    4,269,236    4,334,589    4,565,625    4,448,274 
 
INVESTMENT SECURITIES AVAILABLE FOR SALE    1,885,455    2,118,690    2,640,090    2,761,967 
REINSURANCE ASSETS    38,666    35,453    30,562    27,989 
PREMIUMS AND OTHER POLICYHOLDER RECEIVABLES    58,322    60,665    54,891    59,235 
PROPERTY, PLANT and EQUIPMENT, net    248,129    249,083    243,866    238,511 
DUE FROM CUSTOMERS ON ACCEPTANCES    51,765    47,635    38,151    50,756 
OTHER ASSETS    349,188    352,501    311,524    363,567 
 
TOTAL ASSETS    8,806,296    9,120,588    9,454,400    9,801,202 
         
LIABILITIES AND SHAREHOLDERS' EQUITY                 
                 
DEPOSITS AND OBLIGATIONS:                 
 Non-interest bearing    813,737    1,406,846    1,442,397    1,440,388 
 Interest bearing    5,391,114    4,983,883    5,103,209    5,285,108 
    6,204,851    6,390,729    6,545,606    6,725,496 
 
DUE TO BANKS AND CORRESPONDENTS    349,147    392,511    466,748    463,054 
ACCEPTANCES OUTSTANDING    51,765    47,635    38,151    50,756 
RESERVE FOR PROPERTY AND CASUALTY CLAIMS    381,492    398,439    439,846    448,234 
RESERVE FOR UNEARNED PREMIUMS    62,095    66,678    72,092    72,418 
REINSURANCE PAYABLE    30,157    23,612    9,358    27,350 
BONDS AND SUBORDINATED DEBT    424,889    424,227    409,452    406,832 
OTHER LIABILITIES    222,475    226,307    287,980    331,739 
MINORITY INTEREST    77,776    85,253    93,740    104,815 
 
TOTAL LIABILITIES    7,804,647    8,055,391    8,362,973    8,630,694 
 
NET SHAREHOLDERS' EQUITY    1,001,649    1,065,197    1,091,427    1,170,508 
 
 TOTAL LIABILITIES and NET SHAREHOLDERS' EQUITY    8,806,296    9,120,588    9,454,400    9,801,202 
 
CONTINGENT CREDITS    1,765,015    2,017,731    2,490,445    3,101,817 
FUNDS UNDER MANAGEMENT    1,705,826    1,754,352    1,804,160    1,957,225 
 

23


CREDICORP LTD. AND SUBSIDIARIES
Table 2
CONSOLIDATED INCOME STATEMENTS
(In thousands of U.S. Dollars)

 
    Three months ended    Nine months ended 
     
    30.09.04    30.06.05    30.09.05    30.09.04    30.09.05 
           
INTEREST INCOME                     
    Interest on loans    108,052    109,647    115,828    312,536    328,356 
 Dividends on investments:    (401)   404    212    958    685 
    Interest on deposits with banks    5,878    8,555    8,409    13,047    25,404 
    Interest on securities and investments    23,310    32,737    33,263    68,627    95,993 
Total Interest Income    136,839    151,343    157,712    395,168    450,438 
 
INTEREST EXPENSE                     
    Interest on deposits    24,315    28,295    30,264    68,252    84,534 
    Interest on borrowed funds    5,304    5,335    5,661    12,030    14,418 
    Other interest expense    13,741    13,002    7,514    38,491    28,684 
Total Interest Expense    43,360    46,631    43,439    118,773    127,636 
 
Net Interest Income    93,479    104,712    114,274    276,395    322,803 
 
Provision for possible loan losses, net (1)(3)   3,834    (1,887)   (4,886)   10,872    (9,898)
Net interest income after provision for                     
   possible loan losses    89,645    106,599    119,159    265,523    332,700 
 
OTHER INCOME                     
  Fees and commissions from banking services    49,444    51,593    51,247    141,822    151,102 
  Net gains from sales of securities    3,201    918    7,125    3,760    8,466 
  Net gains on foreign exchange transactions    6,576    7,203    7,586    17,151    21,053 
  Other income (1)(3)   5,529    3,481    6,542    17,689    16,962 
    64,750    63,196    72,499    180,422    197,582 
 
PREMIUMS AND CLAIMS ON INSURANCE ACTIVITIES                     
  Net premiums earned    66,939    53,170    57,175    142,170    163,703 
  Net claims incurred    (8,652)   (11,383)   (9,042)   (25,734)   (31,201)
  Increase in future policy benefits for life and health    (39,963)   (33,389)   (34,549)   (78,650)   (97,763)
    18,324    8,398    13,584    37,786    34,739 
OTHER EXPENSES                     
  Salaries and employee benefits    48,406    49,421    49,557    136,853    146,882 
  General, administrative, and other taxes    37,191    31,628    36,546    109,542    102,692 
  Depreciation and amortization    12,367    9,419    9,742    35,024    29,415 
  Other    26,538    25,297    32,829    59,425    75,609 
  Merger costs    538    0    0    3,742    0 
    125,040    115,765    128,673    344,586    354,597 
 
Translation result    (171)   1,260    (5,702)   3,861    (3,668)
 
Net Income before income tax    47,529    63,688    70,867    143,027    206,756 
 
  Employee profit sharing(2)   (1,635)   (1,699)   (3,588)   (4,434)   (8,182)
  Income Tax    (10,794)   (13,668)   (16,724)   (35,100)   (53,185)
NET INCOME    35,081    48,321    50,555    103,474    145,389 
  Minority Interest    (2,141)   (1,944)   (2,990)   (7,589)   (7,843)
NET INCOME ATTRIBUTABLE TO HOME OFFICE    32,940    46,377    47,565    95,885    137,546 
 
(1)Income from recoveries of charged-off loans has been reclassified within Provisions for loan losses.         
(2)Previously reported as part of personnel expenses.                     
(3)Previously reported in 2Q05, US$2.8Mn have been reclassified from Other income into Loan provision.         

24


CREDICORP LTD. AND SUBSIDIARIES
Table 3
SELECTED FINANCIAL INDICATORS

 
    Three months ended    Nine months ended 
     
    30.09.04    30.06.05    30.09.05    30.09.04    30.09.05 
           
 
Profitability                     
  Net income per common share (US$ per share)(1)   0.41    0.58    0.60    1.20    1.72 
  Net interest margin on interest earning assets (2)   5.19%    5.42%    5.79%    5.25%    5.55% 
  Return on average total assets (2)(3)   1.52%    1.97%    1.98%    1.50%    1.94% 
  Return on average shareholders' equity (2)(3)   13.57%    17.34%    16.82%    13.56%    16.77% 
  No. of outstanding shares (millions)(4)   79.75    79.76    79.75    79.75    79.75 
 
Quality of loan portfolio                     
   Past due loans as a percentage of total loans    4.75%    2.66%    2.53%    4.75%    2.53% 
   Reserves for loan losses as a percentage of                     
       total past due loans    122.03%    178.72%    172.39%    122.03%    172.39% 
   Reserves for loan losses as a percentage of                     
         total loans    5.79%    4.75%    4.36%    5.79%    4.36% 
   Reserves for loan losses as a percentage of                     
       substandard loans (C+D+E)   50.75%    60.01%    64.51%    50.75%    64.51% 
   Past due loans - reserves for loan losses as a                     
       percentage of shareholders' equity    -4.73%    -9.19%    -7.28%    -4.73%    -7.28% 
 
Operating efficiency                     
  Oper. expense as a percent. of total income (5)   45.26%    41.75%    41.39%    48.72%    42.28% 
  Oper. expense as a percent. of av. tot. assets(2)(3)(5)   4.51%    3.85%    3.96%    4.38%    3.92% 
 
Capital adequacy                     
   Total Regulatory Capital (US$Mn)   835.2    849.5    851.6    835.2    851.6 
   Tier I Capital (US$Mn)   733.5    765.8    771.4    733.5    771.4 
   Regulatory capital / risk-weighted assets (6)   12.87%    12.94%    13.16%    12.87%    13.16% 
 
Average balances (US$Mn) (3)                    
   Interest earning assets    7,199.3    7,728.5    7,893.5    7,018.3    7,758.7 
   Total Assets    8,684.7    9,407.7    9,627.8    8,500.4    9,434.3 
   Net equity    971.2    1,070.0    1,131.0    942.8    1,093.9 
 
(1)Based on Net Income due to shareholders. Number of shares outstanding of 79.8 million in all periods.         
(2)Ratios are annualized.                     
(3)Averages are determined as the average of period-beginning and period-ending balances.             
(4)Net of treasury shares. The total number of shares was of 94.38 million.                 
(5)Total income includes net interest income and other income.           
     Operating expense does not include Other expenses and Merger costs.                 
(6)Risk-weighted assets include market risk assets.                     

25


BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 4
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars in thousands)

 
ASSETS    30.09.04    31.12.04    30.06.05    30.09.05 
         
 
CASH AND DUE FROM BANKS    1,682.189    1,708.916    1,456.796    1,666.248 
 Cash and Checks    237.400    250.325    301.793    303.547 
 Deposits in Central Bank of Peru    1,050.419    1,102.491    904.263    1,071.473 
 Deposits with local and foreign banks    394.370    356.100    250.740    291.228 
 
TRADING SECURITIES, net    54.936    46.962    23.745    63.796 
 
LOANS    4,090.347    4,098.487    4,600.781    4,478.503 
 Current    3,886.635    3,947.586    4,477.035    4,364.338 
 Past Due    203.712    150.901    123.746    114.165 
 Less - Reserve for possible loan losses    (273.241)   (241.189)   (224.828)   (200.068)
LOANS NET    3,817.106    3,857.298    4,375.953    4,278.435 
 
INVESTMENT SECURITIES AVAIL. FOR SALE    933.051    1,127.150    1,581.362    1,601.828 
PROPERTY, PLANT and EQUIPMENT, net    197.912    214.278    209.059    202.410 
OTHER ASSETS    274.203    356.133    320.526    370.974 
 
TOTAL ASSETS    6,959.397    7,310.737    7,967.441    8,183.691 
 
LIABILITIES AND SHAREHOLDERS' EQUITY                 
DEPOSITS AND OBLIGATIONS:    5,466.052    5,553.118    6,089.224    6,168.618 
 Demand deposits    1,569.092    1,651.130    1,983.659    2,011.845 
 Saving accounts    1,418.830    1,502.687    1,565.841    1,587.334 
 Time deposits    2,478.130    2,399.301    2,539.724    2,569.439 
 
DUE TO BANKS AND CORRESPONDENTS    161.186    215.893    375.478    380.935 
BONDS AND SUBORDINATED DEBT(1)   440.427    441.628    430.047    428.551 
OTHER LIABILITIES    218.542    299.669    295.427    366.014 
 
SHAREHOLDERS EQUITY:    673.190    800.429    777.265    839.573 
 Capital stock    364.706    364.706    364.706    364.706 
 Legal reserve    210.928    210.928    210.928    210.928 
 Retained earnings    97.556    224.795    201.631    263.939 
 
TOTAL LIABILITIES AND EQUITY    6,959.397    7,310.737    7,967.441    8,183.691 
 
 Contingent Credits    1,651.238    1,833.066    2,377.088    2,868.380 
 Funds under management    952.137    953.826    994.733    1,044.607 
 
(1) Previously reported within Deposits and Obligations.                 

26


BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 5
CONSOLIDATED INCOME STATEMENTS (1)
(In U.S. Dollars in thousands )

 
    Three months ended    Nine months ended 
     
    30.09.04    30.06.05    30.09.05    30.09.04    30.09.05 
           
Interest income and expense                     
  Interest income    111.039    133.836    139.189    321.692    397.727 
  Less - Interest expense    33.250    42.025    39.089    93.690    114.509 
Net interest income    77.789    91.811    100.100    228.002    283.218 
 
Provisions for possible loan losses, net(2)   1.824    0.913    (2.977)   8.854    (5.189)
 
Net interest income after provisions    75.965    90.898    103.077    219.148    288.407 
 
Other Income                     
  Fees and commissions from services    49.716    52.532    53.489    142.054    154.746 
  Net gains from sales of securities    1.591    0.135    4.796    0.155    6.056 
  Net gains on foreing exchg. transacts.    6.432    7.113    7.636    17.044    20.979 
  Other income(2)   1.506    1.490    4.639    4.678    9.429 
    59.245    61.270    70.560    163.931    191.210 
 
Other Expenses                     
  Salaries and employee benefits    36.504    39.760    37.907    107.281    116.500 
  General and administrative    28.541    26.733    30.033    85.174    85.277 
  Depreciation and amortization    9.631    8.484    8.777    29.146    26.713 
  Taxes other than income tax    3.046    3.452    3.040    10.229    9.738 
  Other    12.852    15.582    19.418    29.000    43.789 
  Merger costs    0.538    0.000    0.000    3.742    0.000 
    91.112    94.011    99.175    264.572    282.017 
 
   Translation result         (0.809)   0.395    (5.155)   1.368    (4.417)
 
Income before income tax    43.289    58.552    69.307    119.875    193.183 
  Employee profit sharing(3)   1.588    1.733    3.603    4.242    8.197 
  Income Tax    8.422    12.503    19.055    26.980    48.624 
 
NET INCOME    33.279    44.316    46.649    88.653    136.362 
Net income contributed to Credicorp    32.020    42.643    44.146    26.980    130.469 
 
(1) Estados financieros de acuerdo con NIIF, en dólares.                 
(2) Income from recoveries of charged-off loans has been reclassified within Provisions for loan losses.         
(3) Previously reported as part of personnel expenses.                 

27


BANCO DE CREDITO DEL PERU AND SUBSIDIARIES
Table 6
SELECTED FINANCIAL INDICATORS

 
    Three months ended    Nine months ended 
     
    30.09.04    30.06.05    30.09.05    30.09.04    30.09.05 
           
Profitability                     
 Net income per common share (US$ per share)(1)   0.027    0.036    0.038    0.072    0.111 
 Net interest margin on interest earning assets (2)   5.12%    5.34%    5.72%    5.06%    5.55% 
 Return on average total assets (2)(3)   1.93%    2.23%    2.31%    1.73%    2.35% 
 Return on average shareholders' equity (2)(3)   20.32%    23.50%    23.08%    18.45%    23.10% 
 
Quality of loan portfolio                     
 
  Past due loans as a percentage of total loans    4.98%    2.69%    2.55%    4.98%    2.55% 
  Past due loans + refinanced loans as a                     
      percentage of total loans    9.87%    7.31%    6.62%    9.87%    6.62% 
  Reserves for loan losses as a percentage of                     
      past due loans    134.13%    181.69%    175.24%    134.13%    175.24% 
  Reserves for loan losses as a percentage of                     
      substandard loans (C+D+E)   54.98%    59.50%    63.92%    54.98%    63.92% 
  Reserves for loan losses as a percentage of                     
      past due loans + refinanced loans    67.65%    66.83%    67.53%    67.65%    67.53% 
 
Operating efficiency (5)                    
 Oper. expense as a percent. of total income (4)   58.03%    51.78%    49.47%    59.89%    51.91% 
 Oper. expense as a percent. of av. tot. assets(2)(3)   4.51%    3.95%    3.95%    4.52%    4.10% 
 
Capital adequacy                     
  Total Regulatory capital (millions US$)   682.4    720.2    699.9    682.4    699.9 
  Tier I Capital (millions US$)   620.0    638.4    621.4    620.0    621.4 
  Net equity as a percentage of period end total assets    9.67%    9.76%    10.26%    9.67%    10.26% 
  Regulatory capital / risk-weighted assets    14.13%    13.98%    14.01%    14.13%    14.01% 
 
Average balances (millions US$) (3)                    
  Interest earning assets    6,079.9    6,882.7    6,996.6    6,009.9    6,798.2 
  Total Assets    6,886.2    7,946.5    8,075.6    6,833.4    7,747.2 
  Net equity    655.0    754.2    808.4    640.6    787.1 
 
Additional data                     
  No. of outstanding shares (millions)   1,226    1,287    1,287    1,226    1,287 
  No. of employees    7,667    7,575    7,494    7,667    7,494 
  Inflation rate ( Wholesale price index)   0.13%    0.58%    1.25%    4.91%    2.18% 
  Exchange rate (S/. per 1 U.S. Dollar)   3.34    3.25    3.34    3.34    3.34 
                     
 
(1)Shares outstanding of 1,287 million is used for all periods since shares have been             
   issued only for capitalization of profits and inflation adjustment.             
(2)Ratios are annualized.             
(3)Averages are determined as the average of period-beginning and period-ending balances.             
(4)Total income includes net interest income and other income, excluding non-recurring items.     
(5)Operating expense does not include mandatory employee profit sharing expense nor             
     provisions for other assets received in lieu of loan repayment and non-recurring items.             

28


ATLANTIC SECURITY HOLDING CORPORATION
Table 7
SELECTED FINANCIAL DATA
(Thousands of U.S. Dollars, except net income per share, and percentages)

 
    Three months ended    Nine months ended 
     
    30.09.04    30.06.05    30.09.05    30.09.04    30.09.05 
           
Results                     
  Net Interest Income (w/o dividends)   3,374    3,224    3,022    10,389    9,420 
  Dividend income    33    46    52    5,947    11,825 
  Provisions for credit and market risks        200    1,554    1,300 
  Commissions and fee income    1,001    1,122    1,155    3,212    3,635 
  Other Income(1)   329    455    1,578    2,697    3,936 
  Operating Expense    1,911    1,896    1,979    5,551    5,823 
  Net Income    2,827    2,952    3,629    15,141    21,692 
  Net Income contributed to Credicorp    2,827    2,952    3,628    9,287    9,995 
 
Balance Sheets (end of period)                    
  Total Assets    871,734    926,666    1,003,367    871,734    1,003,367 
  Loan portfolio, net    154,518    151,945    130,619    154,518    130,619 
  Marketable securities and investments    500,498    555,468    618,772    500,498    618,772 
  Total Deposits    688,718    747,123    821,259    688,718    821,259 
  Shareholders' equity    146,512    156,832    161,755    146,512    161,755 
  Funds under administration    708,752    797,263    900,454    708,752    900,454 
 
Ratios (3)                     
  Net interest margin / interest earning assets (3,4,5)   1.9%    1.6%    1.5%    1.9%    1.6% 
  Return on average stockholders' equity(4)   7.9%    7.6%    9.1%    15.6%    18.5% 
  Return on average total assets(4)   1.3%    1.3%    1.5%    2.4%    3.1% 
  Past due loans as a percentage of total loans    2.4%    0.0%    0.0%    2.4%    0.0% 
  Reserves for loan losses as a percentage                     
      of total loans    3.4%    1.9%    2.2%    3.4%    2.2% 
  Operating expense / total income(6)   40.3%    39.1%    34.1%    25.0%    20.2% 
  Operating expense / average total assets(4)   0.9%    0.8%    0.8%    0.9%    0.8% 
  Operating expense / average total assets +                     
                               funds under management(4)   0.5%    0.4%    0.4%    0.5%    0.4% 
 
(1) Includes realized gains in securities.                     
(2) Averages are determined as the average of period-beginning and period-ending balances.         
(3) Averages determined from monthly balances.                     
(4) Annualized.                     
(5) Without considering dividend income and dividend earning assets.                 
(6) Without considering provisions for investments.                     

29


EL PACIFICO-PERUANO SUIZA AND SUBSIDIARIES
Table 8
SELECTED FINANCIAL DATA(1)
(In U.S. Dollars in thousands, except net income per share)

 
    As of and for the three month   As of and for the nine 
    period ended    month period ended 
     
    30.09.04    30.06.05    30.09.05    30.09.04    30.09.05 
           
Results                     
 
  Total gross Premiums    104,535    89,110    88,562    250,960    261,628 
  Net Premiums Earned    67,834    54,239    58,021    144,842    166,497 
  Change in Reserves    18,166    20,302    14,357    65,475    52,849 
  Net Underwriting Results    11,876    1,953    6,391    21,361    15,623 
  Net Financial Income    8,952    10,242    9,441    27,607    28,406 
  General Expenses    13,429    10,840    10,957    30,741    32,585 
  Income tax    1,506    (3)   326    2,906    1,355 
  Net Income    3,611    724    2,703    11,105    6,310 
  Net Income contributed to Credicorp    2,958    136    2,400    7,689    4,713 
 
Balance Sheets (end of period)                    
 
  Total Assets    659,558    748,040    802,786    659,558    802,786 
  Investments in Secur. and Real estate     460,972    577,753    623,189    460,972    623,189 
 Technical Reserves     443,587    511,938    520,652    443,587    520,652 
  Net Equity    141,226    158,225    195,823    141,226    195,823 
 
Ratios                     
 
  Net underwriting results    11.4%    2.2%    7.2%    8.5%    6.0% 
  Net earned loss ratio    71.7%    82.5%    75.1%    72.1%    77.5% 
  Return on avge. equity (2)(3)   10.8%    1.8%    6.2%    20.0%    9.1% 
  Return on total premiums    3.5%    0.8%    3.1%    4.4%    2.4% 
  Shareholders' Equity / Total Assets    21.4%    21.2%    24.4%    21.4%    24.4% 
  Increase in Risk Reserves    21.1%    27.2%    19.8%    31.1%    24.1% 
  Combined Ratio (4)   94.1%    108.7%    95.1%    96.2%    100.6% 
 -Net Claims / Net Premiums Earned    67.2%    78.1%    70.9%    66.9%    74.2% 
 -Op. Exp.+Comiss./Net Prems. Earned    26.9%    30.6%    24.2%    29.3%    26.5% 
  Operating expense/Net Earn. Premiums    19.8%    20.0%    18.9%    21.2%    19.6% 
  Oper. expense / Avge. assets (2)(3)   8.8%    6.1%    5.8%    12.4%    10.5% 
 
(1)Financial statements following IFRS rules in U.S. Dollars. In 2004 certain amounts are estimated         
   from adjusted Peruvian GAAP records for comparison purposes.             
(2)Averages are determined as the average of period-beginning and period-ending balances.         
(3)Annualized.                     
(4)Does not include the life insurance subsidiary Pacifico Vida.                 

30

 


 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 04, 2005

 
CREDICORP LTD.
By:
/S/  Guillermo Castillo

 
Guillermo Castillo
Authorized Representative
 
 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.