INVESTMENTS

12 Months Ended

Dec. 31, 2023

6	INVESTMENTS

Investment at fair value through profit or loss consist of the following:

	2023		2022
	S/(000)		S/(000)

Government Bonds (i)		1,555,548		651,219
Investment funds (ii)		1,199,026		885,574
Mutual funds (iii)		1,106,548		1,582,050
Restricted mutual funds (iv)		334,162		351,317
Corporate bonds		228,302		103,330
Certificates of deposit BCRP (v)		192,666		-
Participation in RAL Funds (vi)		145,414		167,781
Bonds from financial organizations		92,907		47,770
Shares		38,723		47,820
Subordinated bonds		31,582		84,121
ETF (Exchange - Traded Fund)		29,582		25,042
Central Bank of Chile bonds		12,655		202,986
Hedge funds		291		280
Others		8,917		48,269
Balance before accrued interest		4,976,323		4,197,559
Accrued interest		6,338		1,775
Total		4,982,661		4,199,334

(i)

As of December 31, 2023, and 2022 the balance of these instruments includes the following government treasury bonds:

	2023		2022
	S/(000)		S/(000)

Colombian Government Bonds		1,401,000		609,255
Peruvian Government Bonds		141,349		–
Chilean Government Bonds		8,497		38,153
Swiss Government Bonds		4,702		–
United States of America Government Bonds		–		3,811
Total		1,555,548		651,219

(ii)

As of December 31, 2023, the balance corresponds mainly to investment funds in Peru, the United States of America, Colombia and other countries, which represent 54.3 percent, 28.1 percent, 10.0 percent, and 7.6 percent respectively. As of December 31, 2022, the balance corresponds mainly to investment funds in Peru, the United States of America, Colombia and other countries, which represented 44.3 percent, 30.8 percent, 15.5 percent and 9.4 percent respectively.

(iii)

As of December 31, 2023, the balance corresponds to mutual funds from Luxembourg, Bolivia, Ireland, and other countries, which represent 52.0 percent, 35.5 percent, 6.7 percent, and 5.8 percent of the total, respectively. As of December 31, 2022, the balance corresponds to mutual funds from Luxembourg, Bolivia, Peru, and other countries, which represent 64.2 percent, 23.5 percent, 4.8 percent, and 7.5 percent of the total, respectively.

(iv)

The restricted mutual funds comprise the participation quotas in the private pension funds managed by Prima AFP and are maintained in compliance with the legal regulations in Peru. Their availability is restricted, and the yield received is the same as that received by the private pension funds managed.

(v)

As of December 31, 2023, the balance corresponded to 520 certificates of deposit for US$51.9 million, equivalent to S/192.7 million, which accrue interest at an effective annual rate of 5.68 percent, and maturing in January 2024

(vi)

As of December 31, 2023, these funds are approximately Bs194.6 million, equivalent to S/105.2 million, and US$10.8 million, equivalent to S/40.2 million. As of December 31, 2022, these funds amounted to approximately Bs218.7 million, equivalent to S/121.7 million, and US$12.1 million, equivalent to S/46.1 million; and include the investments made by the Group in the Central Bank of Bolivia as guarantee for deposits received from the public. These funds have restrictions for their use and are required from all banks in Bolivia.

Investments at fair value through other comprehensive income consist of the following:

	2023									2022
			Unrealized gross amount									Unrealized gross amount
	Cost		Profits		Losses			Estimated fair value		Cost		Profits		Losses			Estimated fair value
		S/(000)		S/(000)		S/(000)			S/(000)		S/(000)		S/(000)		S/(000)			S/(000)

Debts instruments:

Corporate bonds (i)		13,643,405		177,408		(643,985	)		13,176,828		13,914,118		61,336		(1,194,756	)		12,780,698
Certificates of deposit BCRP (ii)		10,924,181		11,125		(53	)		10,935,253		7,021,219		868		(2,608	)		7,019,479
Government Bonds (iii)		10,387,141		185,055		(207,320	)		10,364,876		9,139,100		59,788		(670,177	)		8,528,711
Securitization instruments (iv)		710,695		15,611		(48,421	)		677,885		772,737		1,564		(107,377	)		666,924
Negotiable certificates of deposit (v)		458,503		6,501		(2,368	)		462,636		577,286		9,988		(1,516	)		585,758
Subordinated bonds		282,368		2,243		(6,793	)		277,818		377,111		462		(17,467	)		360,106
Others		340,867		1,210		(1,739	)		340,338		117,123		958		(6,831	)		111,250
		36,747,160		399,153		(910,679	)		36,235,634		31,918,694		134,964		(2,000,732	)		30,052,926
Equity instruments designated at the initial recognition

Shares issued by:
Alicorp S.A.A.		12,197		134,185		–			146,382		12,197		144,641		–			156,838
Inversiones Centenario		112,647		23,214		–			135,861		112,647		14,158		–			126,805
Holding Bursatil Chilena S.A.		20,457		–		(1,761	)		18,696		–		–		–			–
Holding Bursatil Regional S.A.		20,599		–		(2,318	)		18,281		–		–		–			–
Corporación Andina de Fomento		4,441		776		–			5,217		4,441		930		–			5,371
Compañía Universal Textil S.A.		6,195		–		(2,415	)		3,780		9,597		–		(3,191	)		6,406
Bolsa de Valores de Colombia		33		–		149			182		3,541		–		(1,152	)		2,389
Bolsa de Valores de Lima		–		–		–			–		18,367		6,632		–			24,999
Bolsa de Comercio de Santiago		–		–		–			–		3,995		4,006		–			8,001
Pagos Digitales Peruanos S.A.		5,611		–		(5,611	)		–		5,611		–		(5,611	)		–
Others		3,522		2,906		(25	)		6,403		2,844		3,392		(690	)		5,546
		185,702		161,081		(11,981	)		334,802		173,240		173,759		(10,644	)		336,355

Balance before accrued interest		36,932,862		560,234		(922,660	)		36,570,436		32,091,934		308,723		(2,011,376	)		30,389,281
Accrued interest									473,504									396,880
Total									37,043,940									30,786,161

The variation in the fair value of the investments is mainly due to the decrease in interest rates in soles and in foreign currency, which positively affected the investment portfolios at fair value with changes in other comprehensive income as of December 31, 2023. Credicorp’s management has determined that the unrealized losses of investments at fair value through other comprehensive income as of December 31, 2023 and December 31, 2022 are of a temporal nature; considering factors such as the planned strategy in relation to the security or portfolio identified, the related guarantee and the credit rating of the issuers. During 2023, as a result of the evaluation of the impairment loss of investments at fair value with changes in other comprehensive income, the Group has recorded a provision for credit loss of S/4.3 million (provision for credit loss of S/58.3 million ended December 31, 2022), which is presented in the caption “Net gain in securities”, see note 21 of the consolidated statement of income. Furthermore, Management has decided and has the ability to hold each of these investments for a period of time to allow an early recovery in fair value, even before their sufficient recovery or maturity.

The maturities and annual market rates of investments at fair value through other comprehensive income during 2023 and 2022, are as follows:

	Maturities		Annual effective interest rate
	2023	2022		2023												2022
				S/				US$				Other currencies				S/				US$				Other currencies
				Min		Max		Min		Max		Min		Max		Min		Max		Min		Max		Min		Max
				%		%		%		%		%		%		%		%		%		%		%		%

Corporate bonds	Jan-2024 / Nov-2095	Jan-2023 / Nov-2095			3.17		18.23		2.26		54.02		2.98		15.67		4.10		13.45		0.29		29.61		2.60		14.89
Certificates of deposit BCRP	Jan-2024 / Dec-2024	Jan-2023 / Sep-2023			5.42		6.74		–		–		–		–		7.13		7.48		–		–		–		–
Government bonds	Jan-2024 / Feb-2055	Jan-2023 / Feb-2055			0.90		6.82		0.92		8.89		4.19		4.19		1.87		8.13		–		8.19		–		–
Securitization instruments	Sep-2025 / Sep-2045	Aug-2023 / Sep-2045			4.11		29.78		6.09		16.11		5.80		6.00		5.03		30.87		5.64		16.63		3.50		7.50
Negotiable certificates of deposits	Jan-2024 / Nov-2037	Jan-2023 / Jul-2033			–		–		–		–		0.53		5.74		8.76		8.76		2.48		4.80		1.00		13.50
Subordinated bonds	Apr-2024 / Aug-2045	Jan-2023 / Aug-2045			3.23		9.42		2.81		7.14		–		–		2.15		10.01		3.36		23.73		–		–
Others	Jan-2024 / Feb-2035	Apr-2023 / Feb-2035			0.14		1.76		8.12		9.08		0.25		6.10		2.22		9.56		8.03		8.58		0.05		0.08

Likewise, as of December 31, 2023, the Group entered into repurchase agreements for government bonds and BCRP certificates of deposit classified as investments at fair value through other comprehensive income, for an estimated fair value of S/4,269.9 million (S/1,108.1 million as of December 31, 2022), whose related liability is presented in “Accounts payable for repurchase agreements and securities lending” of the consolidated statement of financial position, see note 5(c).

As of December 31, 2023, the Group maintains IRS, which have been designated as hedges of the fair value of certain fixed-rate bonds in US dollars issued by corporate companies classified as investments at fair value through other comprehensive income, for a nominal amount of S/778.9 million (S/926.5 million as of December 31, 2022), see note 12(c); through said IRS these bonds were economically converted to a variable rate.

(i)

As of December 31, 2023, the balance corresponds to corporate bonds issued by companies in the United States of America, Peru, Colombia and other countries, which represent 40.2 percent, 34.2 percent, 4.3 percent and 21.3 percent of the total, respectively. As of December 31, 2022, the balance corresponds to corporate bonds issued by companies in the United States of America, Peru, Chile and other countries, which represent 39.2 percent, 37.4 percent, 4.4 percent and 19.0 percent of the total, respectively.

Likewise, as of December 31, 2023, the Group maintains Cross currency swaps (CCS), which were designated as cash flow hedges of certain corporate bonds for nominal amounts of S/126.6 million. As of December 31, 2022, it held CCS for an amount of S/131.4 million, see note 12(c); Through said Cross currency swaps (CCS) the bonds were economically converted to soles at a fixed rate.

As of December 31, 2023, the most significant individual unrealized loss amounts to approximately S/25.2 million of Inversiones Nacionales de Turismo - Intursa S.A, S/34.2 million as of December 31, 2022. The variation of the unrealized loss with respect to to the balance of 2022 is due to the behavior of the market.

(ii)

As of December 31, 2023, the Group maintains 111,613 BCRP certificates of deposit. As of December 31, 2022, it held 70,253 BCRP certificates of deposit; which are instruments issued at a discount through public auction, negotiated in the Peruvian secondary market and payable in soles. The increase in the balance is mainly due to the acquisition of new instruments.

(iii)

As of December 31, 2023 and December 31, 2022, the balance includes the following Government Treasury Bonds:

	2023		2022
	S/(000)		S/(000)

Peruvian Government Bonds		8,260,261		6,126,564
United States of America Government Bonds		1,740,125		2,103,713
Colombian Government Bonds		204,525		130,883
Chilean Government Bonds		78,034		78,383
Bolivian Government Bonds		41,436		67,040
Others		40,495		22,128
Total		10,364,876		8,528,711

(iv)

As of December 31, 2023 and December 31, 2022, the balance of securitization instruments includes the following:

	2023		2022
	S/(000)		S/(000)

Inmuebles Panamericana S.A.		153,034		133,079
ATN S.A.		77,666		77,047
Colegios Peruanos S.A.		77,560		61,109
Multimercados Zonales S.A.C.		53,540		47,643
Inmobiliaria Terrano S.A. y Operadora Portuaria S.A.		40,530		–
Costa de Sol S.A.		36,717		37,653
Nessus Hoteles Perú S.A.		34,330		32,519
Concesionaria La Chira S.A.		27,457		25,906
Ferreyros S.A.		25,068		–
Redesur y Tesur		24,504		27,718
Centro Comercial Plaza Norte S.A.C.		24,504		21,996
Compañía de Turismo La Paz S.A.C.		24,174		23,375
Asociación Civil San Juan Bautista		23,565		24,122
Aeropuertos del Perú S.A.		14,730		30,301
Homecenters Peruanos S.A.		–		22,804
Fábrica Nacional de Cemento S.A.		–		22,529
Telefónica Celular de Bolivia S.A.		–		21,470
Others		40,506		57,653
Total		677,885		666,924

The instruments have periodic payments until 2045.The pool of underlying assets consists mainly of accounts receivable from income, revenues for services and from maintenance and marketing contributions (Inmuebles Panamericana S.A.), and accounts receivable for electrical transmission services from the Carhuamayo - Cajamarca line (ATN S.A.).

(v)

As of December 31, 2023, the balance corresponds to certificates equivalent to S/462.6 million in other currencies. issued mainly by the financial systems of Colombia and Bolivia. As of December 31, 2022, the balance corresponds to certificates in other currencies for an amount equivalent to S/573.2 million, certificates in soles for an amount of S/5.9 million and certificates in dollars for an amount of US$1.8 million, equivalent to S/6.7 million.

Amortized cost investments consist of the following:

	2023
	Carrying		Fair
	amount		value
	S/(000)		S/(000)

Peruvian Government Bonds (i)		9,323,970		8,860,624
Corporate bonds (i)		447,245		447,774
Other government bonds (i)		89,484		89,482
Negotiable certificates of deposits		55,336		29,672
Subordinated bonds (i)		29,648		29,801
Certificates of payment on work progress (CRPAO) (ii)		22,717		22,433
		9,968,400		9,479,786
Accrued interest		220,527		220,527
Total investments at amortized cost, net		10,188,927		9,700,313

	2022
	Carrying		Fair
	amount		value
		S/(000)		S/(000)

Peruvian Government Bonds (i)		9,573,026		8,055,873
Corporate bonds (i)		442,558		445,684
Other government bonds (i)		114,262		113,759
Subordinated bonds (i)		49,597		49,830
Certificates of payment on work progress (CRPAO) (ii)		47,584		46,786
		10,227,027		8,711,932
Accrued interest		218,702		218,702
Total investments at amortized cost, net		10,445,729		8,930,634

The expected loss of investments at amortized cost as of December 31, 2023 and 2022 is S/2.3 million and S/3.9 million, respectively.

(i)

As of December 31, 2023, said bonds have maturities between January 2024 and February 2042; accruing interest at an effective annual rate between 5.59 percent and 6.82 percent annually for bonds issued in soles, between 4.53 percent and 21.23 percent for bonds issued in US dollars, and between 8.67 percent and 11.53 percent annually for bonds issued in other currencies. As of December 31, 2022, they have maturities between January 2023 and February 2042; accruing interest at an effective annual rate between 6.65 percent and 8.13 percent annually for bonds issued in soles, between 2.59 percent and 16.30 percent for bonds issued in US dollars, and between 5.66 percent and 11.24 percent annually for bonds issued in other currencies.

Credicorp Management has determined that, as of December 31, 2023, the difference between the amortized cost and the fair value of these investments is of a temporary nature and Credicorp has the intention and ability to hold each of these investments until maturity.

As of December 31, 2023, the Group has investment repurchase agreement operations at amortized cost for an estimated fair value of S/2,264.1 million. As of December 31, 2022, the amount amounted to S/3,540.5 million, the related liability of which is presented in the item “Payables from repurchase agreements and securities lending” of the condensed interim consolidated statement of financial position, see note 5(c).

(ii)

As of December 31, 2023, there are 26 certificates of Annual Recognition of Work Progress Payment - CRPAO (57 CRPAO as of December 31, 2022), issued by the Peruvian State to finance projects and concessions. Said issuance is a mechanism established in the concession contract signed between the State and the concessionaire, which allows the latter to obtain financing to continue with the work undertaken. Said investment matures between January 2024 and April 2026, accruing interest at an effective annual rate between 7.12 percent and 7.75 percent (between January 2023 and April 2026, accruing interest at an effective annual rate between 6.20 percent and 7.59 percent as of December 31, 2022).

The increase in bonds at amortized cost is due to the fact that, in October 2022, Banco de Crédito del Perú reclassified its portfolio of bonds at fair value through other comprehensive income at amortized cost due to a change in its business model, see note 6(b).

The table below shows the balance of investments classified by maturity, without considering accrued interest or provision for credit loss:

	2023
	At fair value through other comprehensive income		Amortized cost
	S/(000)		S/(000)

Up to 3 months		5,297,064		102,203
From 3 months to 1 year		7,778,579		1,309,800
From 1 to 3 years		5,409,142		733,057
From 3 to 5 years		5,378,056		1,193,767
More than 5 years		12,372,792		6,629,573
Without maturity		334,803		–
Total		36,570,436		9,968,400

	2022
	At fair value through other comprehensive income		Amortized cost
		S/(000)		S/(000)

Up to 3 months		8,246,819		191,098
From 3 months to 1 year		2,599,972		343,670
From 1 to 3 years		4,088,478		1,456,530
From 3 to 5 years		4,374,806		459,604
More than 5 years		10,742,851		7,776,125
Without maturity		336,355		–
Total		30,389,281		10,227,027