UNITED
STATES SECURITIES AND EXCHANGE COMMISSION



WASHINGTON,
D.C. 20549



FORM 20-F/A



(Amendment
No. 1)



 ̈REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE

SECURITIES
EXCHANGE ACT OF 1934

OR

xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE
ACT OF 1934

For
the fiscal year ended December 31, 2011

OR

 ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE
ACT OF 1934

OR

 ̈SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE
ACT OF 1934

Date
of event requiring this shell company report ______________

For
the transition period from      to

Commission
file number 1-14014



|CREDICORP LTD.                                 
|-----------------------------------------------
|(Exact name of registrant as specified in its  
|charter)                                       
|BERMUDA                                        
|(Jurisdiction of incorporation or organization)



|Of our subsidiary                       
|----------------------------------------
|Banco de Crédito del Perú:              
|Calle Centenario 156                    
|La Molina                               
|Lima 12, Perú                           
|(Address of principal executive offices)



|Alvaro Correa                                                                         
|--------------------------------------------------------------------------------------
|Chief Financial Officer                                                               
|Credicorp Ltd                                                                         
|Banco de Crédito del Perú:                                                            
|Calle Centenario 156                                                                  
|La Molina                                                                             
|Lima 12, Perú                                                                         
|Phone (+511) 313 2140                                                                 
|Facsimile (+511) 313 2121                                                             
|(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)



Securities
registered or to be registered pursuant to Section 12(b) of the Act.



|Title of each class                      |  | Name of each exchange on which registered
|---------------------------------------- |  | -----------------------------------------
|Common Shares, par value $5.00 per share |  | New York Stock Exchange                  











Securities
registered or to be registered pursuant to Section 12(g) of the Act.None



Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act.None



Indicate
the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period
covered by the annual report.Common Shares, par value $5.00 per share                    94,382,317



Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

YesxNo ̈



If
this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ̈Nox



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

YesxNo ̈



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YesxNo ̈



Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition
of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

| | Large accelerated filerx | Accelerated filer ̈ | Non-accelerated filer ̈ | 
| | ------------------------ | ------------------ | ---------------------- | 



Indicate
by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

|U.S. GAAP ̈ | International Financial Reporting Standards as issued | Other ̈
|---------- | ----------------------------------------------------- | ------
|           | by the International Accounting Standards Boardx      |       

If
“Other” has been checked in response to the previous question, indicate by check mark which financial statement item
the registrant has elected to follow.

Item
17 ̈Item
18x



If
this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).

Yes ̈Nox






















Explanatory Note



We are filing this Amendment No. 1 (“Form
20-F/A”) to our Annual Report on Form 20-F for the Fiscal Year Ended December 31, 2011, originally filed with the
Securities and Exchange Commission (the “SEC”) on April 30, 2011 (the “Form 20-F”), to re-file our
financial statements in Item 18 to include the signature of our independent auditor, Medina, Zaldívar, Paredes &
Asociados, a member of Ernst & Young Global, in its Report of Independent Registered Public Accounting Firm that accompanies our Consolidated Financial
Statements. This amendment does not contain any changes to data and footnotes in our
Consolidated Financial Statements.





This Form 20-F/A is accompanied by currently dated certifications
on Exhibits 12.3, 12.4, 13.3 and 13.4 by our Chief Executive Officer and Chief Financial Officer. Because this Form 20-F/A does
not contain or amend any disclosure with respect to Item 15 of Form 20-F, paragraphs 4 and 5 of the certifications required pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002 have been omitted.





Except as expressly set forth in this Form
20-F/A, we are not amending any other part of the Form 20-F. This Form 20-F/A does not reflect events occurring after the filing
of the Form 20-F or modify or update any related or other disclosures, including forward-looking statements, unless expressly noted
otherwise. Accordingly, this Form 20-F /A should be read in conjunction with the Form 20-F.

















ITEM 18.         FINANCIAL
STATEMENTS



Credicorp Consolidated Financial Statements
and the report of the independent public accounting firm in connection therewith are filed as part of this Annual Report on Form
20-F, as noted below:



|                                                        |  | Page
|------------------------------------------------------- |  | ----
|Report of Independent Registered Public Accounting Firm |  | F-3 
|                                                        |  |     
|Consolidated financial statements                       |  |     
|                                                        |  |     
|Consolidated statements of financial position           |  | F-5 
|Consolidated statements of income                       |  | F-6 
|Consolidated statements of comprehensive income         |  | F-8 
|Consolidated statements of changes in equity            |  | F-9 
|Consolidated statements of cash flows                   |  | F-10
|Notes to consolidated financial statements              |  | F-12



All supplementary
schedules relating to the registrant are omitted because they are not required or because the required information, where material,
is contained in the consolidated financial statements or notes thereto.



Credicorp Ltd. and
Subsidiaries



Consolidated financial
statements as of December 31, 2011 and 2010 together with the Report of Independent Registered Public Accounting Firm



1











Credicorp Ltd. and Subsidiaries



Consolidated financial statements as of December
31, 2011 and 2010 together with the Report of Independent Registered Public Accounting Firm















Credicorp Ltd. and Subsidiaries



Consolidated financial statements
as of December 31, 2011 and 2010 together with the Report of Independent Registered Public Accounting Firm





Content



|Report of Independent Registered Public Accounting Firm | F-3 
|------------------------------------------------------- | ----
|                                                        |     
|Consolidated financial statements                       |     
|                                                        |     
|Consolidated statements of financial position           | F-5 
|Consolidated statements of income                       | F-6 
|Consolidated statements of comprehensive income         | F-8 
|Consolidated statements of changes in equity            | F-9 
|Consolidated statements of cash flows                   | F-10
|Notes to the consolidated financial statements          | F-12







F-2









Report of Independent Registered
Public Accounting Firm





To the shareholders and Board of Directors of Credicorp Ltd.



We have audited the accompanying consolidated statements of
financial position of Credicorp Ltd. and Subsidiaries as of December 31, 2011 and 2010, and the related consolidated statements
of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December
31, 2011. These consolidated financial statements are the responsibility of Credicorp’s management. Our responsibility is
to express an opinion on these consolidated financial statements based on our audits.



We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.



In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the consolidated financial position of Credicorp and subsidiaries at December
31, 2011 and 2010, and the consolidated results of their operations and their cash flows for each of the three years in the period
ended December 31, 2011, in conformity with International Financial Reporting Standards as issued by the International Accounting
Standards Board.





F-3







Report of Independent Registered
Public Accounting Firm (continued)





We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States of America), Credicorp’s internal control over financial reporting
as of December 31, 2011, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission and our report dated April 24, 2012, expressed an unqualified opinion thereon.



Lima, Peru,

April 24, 2012





/S/ Medina,
Zaldívar, Paredes & Asociados





Countersigned by:





|/s/ Cristian Emmerich      | 
|-------------------------- | 
|Cristian Emmerich          | 
|C.P.C.C. Register No19-289 | 





F-4











Credicorp Ltd. and Subsidiaries



Consolidated
statements of financial position

As of December 31, 2011 and 2010



|                                                                                 |  | Note            |  |  | 2011       |   |  |  | 2010       |  
|-------------------------------------------------------------------------------- |  | --------------- |  |  | ---------- | - |  |  | ---------- | -
|                                                                                 |  |                 |  |  | US$(000)   |   |  |  | US$(000)   |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Assets                                                                           |  |                 |  |  |            |   |  |  |            |  
|Cash and due from banks:                                                         |  | 4               |  |  |            |   |  |  |            |  
|Non-interest bearing                                                             |  |                 |  |  | 1,094,568  |   |  |  | 1,624,377  |  
|Interest bearing                                                                 |  |                 |  |  | 4,408,294  |   |  |  | 6,920,038  |  
|                                                                                 |  |                 |  |  | 5,502,862  |   |  |  | 8,544,415  |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Investments:                                                                     |  |                 |  |  |            |   |  |  |            |  
|Trading securities                                                               |  |                 |  |  | 75,611     |   |  |  | 115,568    |  
|Investments available-for-sale                                                   |  | 5               |  |  | 5,915,601  |   |  |  | 3,768,248  |  
|                                                                                 |  |                 |  |  | 5,991,212  |   |  |  | 3,883,816  |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Loans, net:                                                                      |  | 6               |  |  |            |   |  |  |            |  
|Loans, net of unearned income                                                    |  |                 |  |  | 17,441,941 |   |  |  | 14,375,358 |  
|Allowance for loan losses                                                        |  |                 |  |  | (519,708   | ) |  |  | (415,703   | )
|                                                                                 |  |                 |  |  | 16,922,233 |   |  |  | 13,959,655 |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Financial assets designated at fair value through
    profit or loss             |  | 7               |  |  | 90,103     |   |  |  | 179,055    |  
|Premiums and other policies receivable                                           |  | 8(a)            |  |  | 174,367    |   |  |  | 129,136    |  
|Accounts receivable from reinsurers and coinsurers                               |  | 8(b)            |  |  | 151,080    |   |  |  | 160,249    |  
|Property, furniture and equipment, net                                           |  | 9               |  |  | 472,433    |   |  |  | 372,913    |  
|Due from customers on acceptances                                                |  |                 |  |  | 61,695     |   |  |  | 70,331     |  
|Seized assets, net                                                               |  |                 |  |  | 10,842     |   |  |  | 11,336     |  
|Intangible assets and goodwill, net                                              |  | 10(a) and 10(b) |  |  | 453,422    |   |  |  | 372,625    |  
|Other assets                                                                     |  | 11              |  |  | 902,544    |   |  |  | 707,626    |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Total assets                                                                     |  |                 |  |  | 30,732,793 |   |  |  | 28,391,157 |  
|                                                                                 |  |                 |  |  |            |   |  | 
|Liabilities and equity                                                           |  |                 |  |  |            |   |  |  |            |  
|Deposits and obligations:                                                        |  | 12              |  |  |            |   |  |  |            |  
|Non-interest bearing                                                             |  |                 |  |  | 5,390,688  |   |  |  | 4,360,570  |  
|Interest bearing                                                                 |  |                 |  |  | 13,313,159 |   |  |  | 13,457,548 |  
|                                                                                 |  |                 |  |  | 18,703,847 |   |  |  | 17,818,118 |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Due to banks and correspondents                                                  |  | 13              |  |  | 2,060,020  |   |  |  | 2,240,320  |  
|Bankers’ acceptances outstanding                                                 |  |                 |  |  | 61,695     |   |  |  | 70,331     |  
|Accounts payable to reinsurers and coinsurers                                    |  | 8(b)            |  |  | 75,366     |   |  |  | 60,775     |  
|Technical reserves, insurance claims reserves and reserves for unearned premiums |  | 14              |  |  | 1,378,298  |   |  |  | 1,196,323  |  
|Bonds and notes issued                                                           |  | 15              |  |  | 3,965,522  |   |  |  | 2,981,918  |  
|Other liabilities                                                                |  | 11              |  |  | 1,025,405  |   |  |  | 1,093,121  |  
|Total liabilities                                                                |  |                 |  |  | 27,270,153 |   |  |  | 25,460,906 |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Equity                                                                           |  | 16              |  |  |            |   |  |  |            |  
|Capital and reserves attributable to Credicorp’s equity holders:                 |  |                 |  |  |            |   |  |  |            |  
|Capital stock                                                                    |  |                 |  |  | 471,912    |   |  |  | 471,912    |  
|Treasury stock                                                                   |  |                 |  |  | (74,877    | ) |  |  | (74,712    | )
|Capital surplus                                                                  |  |                 |  |  | 111,145    |   |  |  | 119,637    |  
|Reserves                                                                         |  |                 |  |  | 1,812,977  |   |  |  | 1,398,323  |  
|Other reserves                                                                   |  |                 |  |  | 340,168    |   |  |  | 366,721    |  
|Retained earnings                                                                |  |                 |  |  | 734,474    |   |  |  | 591,868    |  
|                                                                                 |  |                 |  |  | 3,395,799  |   |  |  | 2,873,749  |  
|                                                                                 |  |                 |  |  |            |   |  |  |            |  
|Non-controlling interest                                                         |  |                 |  |  | 66,841     |   |  |  | 56,502     |  
|Total equity                                                                     |  |                 |  |  | 3,462,640  |   |  |  | 2,930,251  |  
|Total liabilities and equity                                                     |  |                 |  |  | 30,732,793 |   |  |  | 28,391,157 |  



The accompanying notes are an integral part of these consolidated
financial statements.





F-5









Credicorp Ltd. and Subsidiaries



Consolidated
statements of income

For the
years ended December 31, 2011, 2010 and 2009



|                                                                                |  | Note           |  | 2011     |            |   | 2010     |  |            | 2009     | 
|------------------------------------------------------------------------------- |  | -------------- |  | -------- | ---------- | - | -------- |  | ---------- | -------- | 
|                                                                                |  |                |  | US$(000) |            |   | US$(000) |  |            | US$(000) | 
|                                                                                |  |                |  |          |            |   |          |  |            |          | 
|Interest and dividend income                                                    |  | 20             |  |          | 1,837,764  |   |          |  | 1,471,708  |          | 
|Interest expense                                                                |  | 20             |  |          | (531,600   | ) |          |  | (414,121   | )        | 
|Net interest and dividend income                                                |  |                |  |          | 1,306,164  |   |          |  | 1,057,587  |          | 
|Provision for loan losses, net of recoveries                                    |  | 6(d)           |  |          | (214,898   | ) |          |  | (174,682   | )        | 
|Net interest and dividend income after provision for loan losses                |  |                |  |          | 1,091,266  |   |          |  | 882,905    |          | 
|Other income                                                                    |  |                |  |          |            |   |          |  |            |          | 
|Banking services commissions                                                    |  | 21             |  |          | 607,843    |   |          |  | 524,895    |          | 
|Net gain on foreign exchange transactions                                       |  |                |  |          | 138,492    |   |          |  | 104,169    |          | 
|Net gain on sale of securities                                                  |  |                |  |          | 61,927     |   |          |  | 80,326     |          | 
|Net gain on financial assets designated at fair value through profit or loss    |  | 7              |  |          | -          |   |          |  | 64,477     |          | 
|Other                                                                           |  | 24             |  |          | 30,374     |   |          |  | 30,668     |          | 
|Total other income                                                              |  |                |  |          | 838,636    |   |          |  | 804,535    |          | 
|                                                                                |  |                |  |          |            |   |          |  |            |          | 
|Insurance premiums and claims                                                   |  |                |  |          |            |   |          |  |            |          | 
|Net premiums earned                                                             |  | 22             |  |          | 574,423    |   |          |  | 480,293    |          | 
|Net claims incurred for life, property, casualty and health insurance contracts |  | 23             |  |          | (377,759   | ) |          |  | (315,572   | )        | 
|Total premiums earned less claims                                               |  |                |  |          | 196,664    |   |          |  | 164,721    |          | 
|                                                                                |  |                |  |          |            |   |          |  |            |          | 
|Other expenses                                                                  |  |                |  |          |            |   |          |  |            |          | 
|Salaries and employees benefits                                                 |  |                |  |          | (595,705   | ) |          |  | (568,004   | )        | 
|Administrative expenses                                                         |  |                |  |          | (405,357   | ) |          |  | (341,123   | )        | 
|Depreciation and amortization                                                   |  | 9(a) and 10(a) |  |          | (93,882    | ) |          |  | (82,289    | )        | 
|Impairment loss on available-for-sale investments                               |  | 5(c)           |  |          | (1,025     | ) |          |  | (3,250     | )        | 
|Net loss on financial assets designated at fair value through profit or loss    |  | 7              |  |          | (24,640    | ) |          |  | -          |          | 
|Other                                                                           |  | 24             |  |          | (109,540   | ) |          |  | (91,219    | )        | 
|Total other expenses                                                            |  |                |  |          | (1,230,149 | ) |          |  | (1,085,885 | )        | 
|                                                                                |  |                |  |          |            |   |          |  |            |          | 
|Income before translation result and income tax                                 |  |                |  |          | 896,417    |   |          |  | 766,276    |          | 
|                                                                                |  |                |  |          |            |   |          |  |            |          | 
|Translation result                                                              |  |                |  |          | 37,881     |   |          |  | 24,120     |          | 
|Income tax                                                                      |  | 17(b)          |  |          | (210,508   | ) |          |  | (187,081   | )        | 
|Net income                                                                      |  |                |  |          | 723,790    |   |          |  | 603,315    |          | 





F-6









Consolidated
statements of income(continued)



|                                                                                                      |  | Note |  | 2011     |         |  | 2010     |  |         | 2009     | 
|----------------------------------------------------------------------------------------------------- |  | ---- |  | -------- | ------- |  | -------- |  | ------- | -------- | 
|                                                                                                      |  |      |  | US$(000) |         |  | US$(000) |  |         | US$(000) | 
|                                                                                                      |  |      |  |          |         |  |          |  |         |          | 
|Attributable to:                                                                                      |  |      |  |          |         |  |          |  |         |          | 
|Equity holders of Credicorp Ltd.                                                                      |  |      |  |          | 709,272 |  |          |  | 571,302 |          | 
|Non-controlling interest                                                                              |  |      |  |          | 14,518  |  |          |  | 32,013  |          | 
|                                                                                                      |  |      |  |          | 723,790 |  |          |  | 603,315 |          | 
|Earnings per share for net income attributable to equity holders of Credicorp Ltd. (in U.S. Dollars): |  |      |  |          |         |  |          |  |         |          | 
|Basic                                                                                                 |  | 25   |  |          | 8.93    |  |          |  | 7.19    |          | 
|Diluted                                                                                               |  | 25   |  |          | 8.90    |  |          |  | 7.17    |          | 





The accompanying notes are an integral part of these consolidated
financial statements.





F-7









Credicorp Ltd. and Subsidiaries



Consolidated
statements of comprehensive income

For the
years ended December 31, 2011, 2010 and 2009



|                                                           |  | Note  |  | 2011     |         |   | 2010     |  |         | 2009     | 
|---------------------------------------------------------- |  | ----- |  | -------- | ------- | - | -------- |  | ------- | -------- | 
|                                                           |  |       |  | US$(000) |         |   | US$(000) |  |         | US$(000) | 
|                                                           |  |       |  |          |         |   |          |  |         |          | 
|Net income                                                 |  |       |  |          | 723,790 |   |          |  | 603,315 |          | 
|Other comprehensive income                                 |  |       |  |          |         |   |          |  |         |          | 
|                                                           |  |       |  |          |         |   |          |  |         |          | 
|Net (loss) gain on investments available–for-sale          |  | 16(d) |  |          | (53,168 | ) |          |  | 225,261 |          | 
|Net movement of cash flow hedges                           |  | 16(d) |  |          | 168     |   |          |  | (7,319  | )        | 
|Income tax                                                 |  | 16(d) |  |          | 31,017  |   |          |  | (66,010 | )        | 
|                                                           |  |       |  |          |         |   |          |  |         |          | 
|Other comprehensive income for the year, net of income tax |  |       |  |          | (21,983 | ) |          |  | 151,932 |          | 
|                                                           |  |       |  |          |         |   |          |  |         |          | 
|Total comprehensive income for the year, net of income tax |  |       |  |          | 701,807 |   |          |  | 755,247 |          | 
|                                                           |  |       |  |          |         |   |          |  |         |          | 
|Attributable to:                                           |  |       |  |          |         |   |          |  |         |          | 
|Equity holders of Credicorp Ltd.                           |  |       |  |          | 682,719 |   |          |  | 700,577 |          | 
|Non-controlling interest                                   |  |       |  |          | 19,088  |   |          |  | 54,670  |          | 
|                                                           |  |       |  |          |         |   |          |  |         |          | 
|                                                           |  |       |  |          | 701,807 |   |          |  | 755,247 |          | 





The accompanying notes are an integral part of these consolidated
financial statements.





F-8









Credicorp Ltd. and Subsidiaries



Consolidated
statements of changes in equity

For the years ended December 31, 2011,
2010 and 2009



|                                                             |  | Attributable to Credicorp’s equity holders    |        |  |               |  |         |                | 
|------------------------------------------------------------ |  | --------------------------------------------- | ------ |  | ------------- |  | ------- | -------------- | 
|                                                             |  | Number of 
shares issued,  notes 16(a) and
25 |        |  | Capital stock |  |         | Treasury stock | 
|                                                             |  | (In thousands of units)                       |        |  | US$(000)      |  |         | US$(000)       | 
|                                                             |  |                                               |        |  |               |  |         |                | 
|Balances as
    of January 1, 2009                           |  |                                               | 94,382 |  |               |  | 471,912 |                | 
|Changes in equity for
    2009 -                             |  |                                               |        |  |               |  |         |                | 
|Net income                                                   |  |                                               | -      |  |               |  | -       |                | 
|Other
    comprehensive income                               |  |                                               | -      |  |               |  | -       |                | 
|Total comprehensive income                                   |  |                                               | -      |  |               |  | -       |                | 
|Transfer of retained earnings
    to reserves, Note 16(c)    |  |                                               | -      |  |               |  | -       |                | 
|Cash dividends, Note 16(e)                                   |  |                                               | -      |  |               |  | -       |                | 
|Purchase of treasury stock                                   |  |                                               | -      |  |               |  | -       |                | 
|Share-based payments transactions,
    Note 18(b)            |  |                                               | -      |  |               |  | -       |                | 
|Dividends
    of subsidiaries and other                      |  |                                               | -      |  |               |  | -       |                | 
|Balances as of December
    31, 2009                         |  |                                               | 94,382 |  |               |  | 471,912 |                | 
|Changes in equity for
    2010 -                             |  |                                               |        |  |               |  |         |                | 
|Net income                                                   |  |                                               | -      |  |               |  | -       |                | 
|Other
    comprehensive income                               |  |                                               | -      |  |               |  | -       |                | 
|Total comprehensive income                                   |  |                                               | -      |  |               |  | -       |                | 
|Purchase of non-controlling
    interest, Note 2(b) and 3(b) |  |                                               | -      |  |               |  | -       |                | 
|Transfer of retained earnings
    to reserves, Note 16(c)    |  |                                               | -      |  |               |  | -       |                | 
|Cash dividends, Note 16(e)                                   |  |                                               | -      |  |               |  | -       |                | 
|Purchase of treasury stock,
    Note 18(b)                   |  |                                               | -      |  |               |  | -       |                | 
|Share-based payments transactions,
    Note 18(b)            |  |                                               | -      |  |               |  | -       |                | 
|Dividends
    of subsidiaries and other                      |  |                                               | -      |  |               |  | -       |                | 
|Balances as of December
    31, 2010                         |  |                                               | 94,382 |  |               |  | 471,912 |                | 
|Changes in equity for
    2011 -                             |  |                                               |        |  |               |  |         |                | 
|Net income                                                   |  |                                               | -      |  |               |  | -       |                | 
|Other
    comprehensive income                               |  |                                               | -      |  |               |  | -       |                | 
|Total comprehensive income                                   |  |                                               | -      |  |               |  | -       |                | 
|Purchase of non-controlling interest                         |  |                                               | -      |  |               |  | -       |                | 
|Transfer of retained earnings
    to reserves, Note 16(c)    |  |                                               | -      |  |               |  | -       |                | 
|Cash dividends, Note 16(e)                                   |  |                                               | -      |  |               |  | -       |                | 
|Purchase of treasury stock,
    Note 18(b)                   |  |                                               | -      |  |               |  | -       |                | 
|Share-based payments transactions,
    Note 18(b)            |  |                                               | -      |  |               |  | -       |                | 
|Dividends
    of subsidiaries and other                      |  |                                               | -      |  |               |  | -       |                | 
|Balances
    as of December 31, 2011                         |  |                                               | 94,382 |  |               |  | 471,912 |                | 





The accompanying notes are an integral part of these consolidated
financial statements.





F-9









Credicorp Ltd. and Subsidiaries



Consolidated
statements of cash flows

For the years ended December 2011, 2010
and 2009



|                                                                                     |  | 2011     |            |   | 2010     |  |            | 2009     | 
|------------------------------------------------------------------------------------ |  | -------- | ---------- | - | -------- |  | ---------- | -------- | 
|                                                                                     |  | US$(000) |            |   | US$(000) |  |            | US$(000) | 
|                                                                                     |  |          |            |   |          |  |            |          | 
|Cash flows from operating activities                                                 |  |          |            |   |          |  |            |          | 
|Net income                                                                           |  |          | 723,790    |   |          |  | 603,315    |          | 
|Add (deduct)                                                                         |  |          |            |   |          |  |            |          | 
|Provision for loan losses                                                            |  |          | 214,898    |   |          |  | 174,682    |          | 
|Depreciation and amortization                                                        |  |          | 93,882     |   |          |  | 82,289     |          | 
|Provision for seized assets                                                          |  |          | -          |   |          |  | -          |          | 
|Provision for sundry risks                                                           |  |          | 10,661     |   |          |  | 8,440      |          | 
|Deferred income tax                                                                  |  |          | (9,057     | ) |          |  | (16,333    | )        | 
|Net gain on sales of securities                                                      |  |          | (61,927    | ) |          |  | (80,326    | )        | 
|Impairment loss on available-for-sale investments                                    |  |          | 1,025      |   |          |  | 3,250      |          | 
|Net (gain) loss on financial assets designated at fair value through profit and loss |  |          | 24,640     |   |          |  | (64,477    | )        | 
|Gain (loss) on sales of property, furniture and equipment                            |  |          | 112        |   |          |  | 357        |          | 
|Translation result                                                                   |  |          | (37,881    | ) |          |  | (24,120    | )        | 
|Loss for shared-based compensation plan                                              |  |          | 7,014      |   |          |  | 73,527     |          | 
|Purchase (sale) of trading securities, net                                           |  |          | 39,957     |   |          |  | (43,048    | )        | 
|Net changes in assets and liabilities                                                |  |          |            |   |          |  |            |          | 
|Increase in loans                                                                    |  |          | (3,443,013 | ) |          |  | (2,943,128 | )        | 
|(Increase) decrease in other assets                                                  |  |          | (187,916   | ) |          |  | (3,190     | )        | 
|Increase in deposits and obligations                                                 |  |          | 1,001,408  |   |          |  | 4,074,938  |          | 
|(Decrease) increase in due to banks and correspondents                               |  |          | (174,949   | ) |          |  | 1,082,383  |          | 
|Increase (decrease) in other liabilities                                             |  |          | 91,822     |   |          |  | 263,147    |          | 
|Net cash provided by (used in) operating activities                                  |  |          | (1,705,534 | ) |          |  | 3,191,706  |          | 
|                                                                                     |  |          |            |   |          |  |            |          | 
|Cash flows from investing activities                                                 |  |          |            |   |          |  |            |          | 
|Acquisition of subsidiary                                                            |  |          | (82,656    | ) |          |  | -          |          | 
|Net (purchase) sale of investments available-for-sale                                |  |          | (2,468,326 | ) |          |  | 1,393,345  |          | 
|Purchase of property, furniture and equipment                                        |  |          | (100,819   | ) |          |  | (80,184    | )        | 
|Sales of property, furniture and equipment                                           |  |          | 526        |   |          |  | 265        |          | 
|Purchase of non-controlling interest                                                 |  |          | (2,399     | ) |          |  | (184,971   | )        | 
|Net cash provided by investing activities                                            |  |          | (2,653,674 | ) |          |  | 1,128,455  |          | 





F-10







Consolidated statements of cash
flows (continued)



|                                                       |  | 2011     |            |   | 2010     |  |           | 2009     | 
|------------------------------------------------------ |  | -------- | ---------- | - | -------- |  | --------- | -------- | 
|                                                       |  | US$(000) |            |   | US$(000) |  |           | US$(000) | 
|                                                       |  |          |            |   |          |  |           |          | 
|Cash flows from financing activities                   |  |          |            |   |          |  |           |          | 
|Issuance of bonds and notes                            |  |          | 1,841,332  |   |          |  | 1,449,323 |          | 
|Redemption and payments of bonds and notes             |  |          | (398,406   | ) |          |  | (858,890  | )        | 
|Acquisition of Credicorp’s shares                      |  |          | (17,488    | ) |          |  | (15,002   | )        | 
|Cash dividends                                         |  |          | (155,535   | ) |          |  | (135,595  | )        | 
|Net cash provided by financing activities              |  |          | 1,269,903  |   |          |  | 439,836   |          | 
|                                                       |  |          |            |   |          |  |           |          | 
|Net (decrease) increase in cash and cash equivalents   |  |          | (3,089,305 | ) |          |  | 4,759,997 |          | 
|                                                       |  |          |            |   |          |  |           |          | 
|Translation gain (loss) on cash and cash equivalents   |  |          | 47,752     |   |          |  | (52,240   | )        | 
|                                                       |  |          |            |   |          |  |           |          | 
|Cash and cash equivalents at the beginning of the year |  |          | 8,544,415  |   |          |  | 3,836,658 |          | 
|                                                       |  |          |            |   |          |  |           |          | 
|Cash and cash equivalents at the end of the year       |  |          | 5,502,862  |   |          |  | 8,544,415 |          | 
|                                                       |  |          |            |   |          |  |           |          | 
|Supplementary cash flows information:                  |  |          |            |   |          |  |           |          | 
|Cash paid during the year for -                        |  |          |            |   |          |  |           |          | 
|Interest                                               |  |          | 504,278    |   |          |  | 401,156   |          | 
|Income tax                                             |  |          | 254,564    |   |          |  | 172,481   |          | 
|Cash received during the year for -                    |  |          |            |   |          |  |           |          | 
|Interest                                               |  |          | 1,816,992  |   |          |  | 1,462,520 |          | 



The accompanying notes are an integral part of these consolidated
financial statements.





F-11









Credicorp Ltd. and Subsidiaries



Notes to
the consolidated financial statements

As of December 31, 2011 and 2010



| | 1. | Operations
| | -- | ----------



Credicorp Ltd. (hereinafter “Credicorp”
or “the Group”) is a limited liability company incorporated in Bermuda in 1995 to act as a holding company and to coordinate
the policies and administration of its subsidiaries. It is also engaged in investing activities.



Credicorp Ltd., through its banking and non-banking
subsidiaries, provides a wide range of financial services and products throughout Peru and in certain other countries (Bolivia
and Panama). Its major subsidiary is Banco de Crédito del Perú (hereinafter “BCP” or the “Bank”),
a Peruvian universal bank. Credicorp’s address is Claredon House 2 Church Street Hamilton, Bermuda; likewise, administration
offices of its representative in Peru are located in Calle Centenario No156, La Molina, Lima, Peru.



Credicorp is listed in Lima and New York stock exchanges.



The consolidated financial statements as of and
for the year ended December 31, 2010 were approved in the General Shareholders’ meeting held on March 31, 2011. The accompanying
consolidated financial statements as of and for the year ended December 31, 2011, were approved by the Board of Directors Meeting
of February 22, 2012 and by the General Shareholders’ Meeting of March, 30 2012 without modifications.



| | 2. | Acquisitions
| | -- | ------------



| | (a) | During 2011, Credicorp, through its Peruvian subsidiary Pacífico S.A. Entidad Prestadora de Salud (EPS), acquired the
following Peruvian entities specialized in providing health services, health and wellness programs, primary and specialized ambulatory
services, and comprehensive acute care services (hereinafter referred as “private hospitals”), for a total amount of
approximately US$82.7 million:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Entity                                             |  | Acquisition date |  | Activity         |  | Percentage of
    participation |        |  | Amount   | 
|-------------------------------------------------- |  | ---------------- |  | ---------------- |  | ------------------------------- | ------ |  | -------- | 
|                                                   |  |                  |  |                  |  | %                               |        |  | US$(000) | 
|                                                   |  |                  |  |                  |  |                                 |        |  |          | 
|Doctor + S.A.C.                                    |  | July, 2011       |  | Health services  |  |                                 | 100.00 |  |          | 
|La Esperanza del Perú
    S.A.                     |  | August, 2011     |  | Private hospital |  |                                 | 70.00  |  |          | 
|Análisis Clínicos
    ML S.R.L.                    |  | August, 2011     |  | Laboratory       |  |                                 | 100.00 |  |          | 
|Galeno I.E.M. S.A.C.                               |  | August, 2011     |  | Private hospital |  |                                 | 100.00 |  |          | 
|Oncocare S.R.L.                                    |  | November, 2011   |  | Private hospital |  |                                 | 80.00  |  |          | 
|Sistemas de Administración
    Hospitalaria S.A.C. |  | December, 2011   |  | Private hospital |  |                                 | 97.32  |  |          | 
|Servicios
    de Salud San Isidro                  |  | December, 2011   |  | Private hospital |  |                                 | 100.00 |  |          | 
|Total                                              |  |                  |  |                  |  |                                 |        |  |          | 



F-12











Notes
to the consolidated financial statements (continued)



The acquisitions of these entities
were recorded using the acquisition method, as required by IFRS 3, “Business Combinations”, applicable at the date
of the transaction. Assets and liabilities were recorded at their estimated fair values at the acquisition dates, including the
identified intangible assets unrecorded in the statements of financial position of each entity. The non-controlling interest in
the acquiree was measured at fair value. Acquisition cost incurred were expensed and included in the caption “Administrative
expenses” of the consolidated statements of income. Book value and the total fair value of the identified assets and liabilities
were as follows:



|                                                  |  | Book value |        |  | Fair value adjustments |  |        | Fair value recognized on acquisition | 
|------------------------------------------------- |  | ---------- | ------ |  | ---------------------- |  | ------ | ------------------------------------ | 
|                                                  |  | US$(000)   |        |  | US$(000)               |  |        | US$(000)                             | 
|                                                  |  |            |        |  |                        |  |        |                                      | 
|Assets                                            |  |            |        |  |                        |  |        |                                      | 
|Accounts receivables, net                         |  |            | 8,761  |  |                        |  | -      |                                      | 
|Property, furniture and equipment, net, Note 9(a) |  |            | 25,356 |  |                        |  | 21,514 |                                      | 
|Intangible                                        |  |            |        |  |                        |  |        |                                      | 
|Licenses, Note 10(a)                              |  |            | -      |  |                        |  | 12,271 |                                      | 
|Brand name, Note 10(a)                            |  |            | -      |  |                        |  | 10,587 |                                      | 
|Client relationships, Note 10(a)                  |  |            | -      |  |                        |  | 3,116  |                                      | 
|Other assets                                      |  |            | 3,212  |  |                        |  | -      |                                      | 
|                                                  |  |            |        |  |                        |  |        |                                      | 
|Liabilities                                       |  |            |        |  |                        |  |        |                                      | 
|Loans                                             |  |            | 7,177  |  |                        |  | -      |                                      | 
|Accounts payable                                  |  |            | 24,447 |  |                        |  | (290   | )                                    | 
|Deferred income tax liability                     |  |            | 1,334  |  |                        |  | 14,333 |                                      | 
|                                                  |  |            |        |  |                        |  |        |                                      | 
|Total identifiable net assets at fair value       |  |            | 4,371  |  |                        |  | 33,445 |                                      | 
|                                                  |  |            |        |  |                        |  |        |                                      | 
|Non controlling interest measured at fair value   |  |            | -      |  |                        |  | (700   | )                                    | 
|                                                  |  |            |        |  |                        |  |        |                                      | 
|Goodwill arising on acquisition, Note 10(b)       |  |            | -      |  |                        |  | 45,540 |                                      | 
|                                                  |  |            |        |  |                        |  |        |                                      | 
|Purchase consideration                            |  |            | 4,371  |  |                        |  | 78,285 |                                      | 



Fair values of licenses, brand
name and client relationship were estimated using the MEEM method (“Multi-period Excess Earnings Method”) based on
discounted cash flows calculations of future benefits related to these intangible.



F-13









Notes
to the consolidated financial statements (continued)



Considering the dates of acquisition,
the initial accounting for the business combination is incomplete by the end of the reporting period. Therefore; certain amounts
reported are provisional amounts. Credicorp during the measurement period, if necessary, will retrospectively adjust the provisional
amounts recognized, including net assets or liabilities, at the acquisition dates to reflect new information obtained about facts
and circumstances that existed as of the acquisition dates.



The measurement period ends as
soon as Credicorp receives the information seeked about facts and circumstances as of the acquisition dates or learns that more
information is not obtainable. However, the measurement period will not exceed one year from the acquisition dates.



| | (b) | Non-controlling interest of Subsidiaries -
| | --- | ------------------------------------------



During October 2010, Credicorp
reached an agreement with American Life Insurance Company (hereinafter “ALICO”) to acquire its 20.10 percent and 38.00
percent stakes in El Pacifico Peruano – Suiza Compañía de Seguros y Reaseguros (PPS) and Pacifico Vida Compañía
de Seguros y Reaseguros S.A. (PPV), respectively. Credicorp acquired PPV's shares and its subsidiary, Grupo Crédito S.A.,
acquired PPS’s shares. An additional 1.18 percent of non-controlling interest was acquired by Grupo Crédito S.A. from
minority shareholders.



The acquisition was recorded following
IFRS 3 “Business Combinations” and IAS 27 (amendments) “Consolidated and Separate Financial Statements”,
see Note 3(b). The total cash consideration paid was approximately US$174.0 million. The difference of US$3.3 million between the
consideration paid and the carrying value of the interest acquired was recognized in “Retained earnings” within consolidated
equity.



| | (c) | Empresa Financiera Edyficar S.A. -
| | --- | ----------------------------------



During October and November 2009,
Credicorp, through its subsidiary BCP, acquired 99.79 percent of the capital stock of Empresa Financiera Edyficar S.A. (a Peruvian
financial entity, serving micro and small size entrepreneurs, hereinafter “Edyficar”) for approximately US$96.1 million
in cash.



F-14











Notes
to the consolidated financial statements (continued)



The acquisition of Edyficar was
recorded using the purchase method, as required by IFRS 3, “Business Combinations”, applicable at the date of the transaction.
Book value and fair value of the identified assets and liabilities were as follows:



|                              |  | Book value |         |  | Fair value adjustments |  |         | Fair value of the acquired entity | 
|----------------------------- |  | ---------- | ------- |  | ---------------------- |  | ------- | --------------------------------- | 
|                              |  | US$(000)   |         |  | US$(000)               |  |         | US$(000)                          | 
|                              |  |            |         |  |                        |  |         |                                   | 
|Assets                        |  |            |         |  |                        |  |         |                                   | 
|Cash and due from banks       |  |            | 3,810   |  |                        |  | -       |                                   | 
|Loans, net                    |  |            | 218,218 |  |                        |  | (10,295 | )                                 | 
|Client relationships          |  |            | -       |  |                        |  | 6,574   |                                   | 
|Fixed assets, net             |  |            | 8,255   |  |                        |  | -       |                                   | 
|Brand name                    |  |            | -       |  |                        |  | 13,159  |                                   | 
|Goodwill, Note 10(b)          |  |            | -       |  |                        |  | 50,696  |                                   | 
|Other assets                  |  |            | 11,802  |  |                        |  | 3,263   |                                   | 
|                              |  |            |         |  |                        |  |         |                                   | 
|Liabilities                   |  |            |         |  |                        |  |         |                                   | 
|Obligations                   |  |            | 38,590  |  |                        |  | -       |                                   | 
|Due to banks                  |  |            | 138,257 |  |                        |  | -       |                                   | 
|Deferred income tax liability |  |            | -       |  |                        |  | 6,611   |                                   | 
|Other liabilities             |  |            | 25,054  |  |                        |  | 831     |                                   | 
|                              |  |            |         |  |                        |  |         |                                   | 
|Net acquired assets           |  |            | 40,184  |  |                        |  | 55,955  |                                   | 



| | 3. | Significant accounting policies
| | -- | -------------------------------



Significant accounting principles used in the preparation
of Credicorp’s consolidated financial statements are set out below and were consistently applied to all of the years presented.



| | (a) | Basis of presentation and use of estimates -
| | --- | --------------------------------------------



The consolidated financial statements
were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board (IASB). The consolidated financial statements were prepared on a historical cost basis, except for trading securities, available-for-sale
investments, derivative financial instruments, share-based payment and financial assets designated at fair value through profit
or loss, which were measured at fair value. The consolidated financial statements are presented in United States Dollars (US$),
and all values are rounded to the nearest US$ thousands, except when otherwise indicated.



The preparation of the consolidated financial statements
in conformity with IFRS requires Management to make estimates and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses and the disclosure of significant events in notes to the consolidated financial statements.



F-15









Notes
to the consolidated financial statements (continued)



Estimates and judgments are continually evaluated
and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable
under the current circumstances. Actual results could differ from those estimates. The most significant estimates comprised in
the accompanying consolidated financial statements are related to the computation of the allowance for loan losses, the measurement
of financial instruments, the technical reserves for claims and premiums, the provision for seized assets, the estimated useful
life of property, furniture and equipment, the estimated useful life of intangible assets and goodwill, the valuation of derivative
financial instruments and the deferred tax assets and liabilities. The accounting criteria used for each of these items are described
in this note.



The accounting policies adopted are consistent with
those of the previous year, except that the Group has adopted those new IFRS and revised IAS mandatory for years beginning on or
after January 1, 2011. The adoption of the following new and revised accounting standards did not have any significant impact on
the consolidated financial position or performance of the Group:



| | - | IAS 24 “Related Party Disclosures” (amendment), effective for periods beginning on or after January 1, 2011. The
amendment simplifies the identification of related party relationships, particularly in relation to significant influence and joint
control.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IAS 32 “Financial Instruments: Presentation” – Classification of Rights Issues (amendment), effective for
annual periods beginning on or after February 1, 2010. The IAS amends the definition of a financial liability in order to classify
rights issues (and certain options or warrants) as equity instruments in cases where such rights are given pro rata to all of the
existing owners of the same class of an entity’s non-derivative equity instruments, or to acquire a fixed number of the entity’s
own equity instruments for a fixed amount in any currency.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRIC 14 “Prepayments of a Minimum Funding Requirement” (amendment), effective for periods beginning on or after
January 1, 2011. The IFRIC permits an entity to treat the prepayment of a minimum funding requirement as an asset.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments”, effective for annual periods beginning
on or after July 1, 2010. The interpretation clarifies that equity instruments issued to a creditor to extinguish a financial liability
qualify as consideration paid. The equity instruments issued are measured at their fair value. In case this cannot be reliably
measured, they are measured at the fair value of the liability extinguished. Any gain or loss is recognized immediately in profit
or loss.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Improvements to IFRSs (issued in May 2010). The IASB issued Improvements to IFRSs, an omnibus of amendments and improvements
to its IFRS standards.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------





F-16









Notes
to the consolidated financial statements (continued)



| | (b) | Consolidation -
| | --- | ---------------



| |  | Subsidiaries -
| |  | --------------



Subsidiaries are all entities (including
special purpose entities) in which the Group has the power to govern their financial and operating policies. This situation is
generally evidenced by controlling more than one half of the voting rights.



| |  | Subsidiaries are fully consolidated from the date on which effective control is transferred to the Group and are no longer
consolidated from the date control ceases. The consolidated financial statements include the assets, liabilities, income and expenses
of Credicorp and its Subsidiaries. Transactions between the Group’s entities, including balances, gains or losses are eliminated.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Business combinations made after
January 1, 2010 are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the
consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree.
For each business combination, the acquirer measures the noncontrolling interest in the acquiree at fair value. Acquisition costs
incurred are expensed and included in the caption “Administrative expenses” of the consolidated statement of income.



When the Group acquires a business,
it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the
contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.



Any contingent consideration to
be transferred by the acquirer is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the
contingent consideration which is deemed to be an asset or liability, will be recognized either in profit or loss or as a change
to other comprehensive income. If the contingent consideration is classified as equity, it should not be remeasured until it is
finally settled within equity.



Business combinations prior to
January 1, 2010, in comparison to the above-mentioned requirements, were accounted for using the purchase method. Transaction costs
directly attributable to the acquisition formed part of the acquisition costs. The non-controlling interest (formerly known as
minority interest) was measured at the proportionate share of the acquiree’s identifiable net assets.



Contingent consideration was recognized
if, and only if, the Group had a present obligation, the economic outflow was more likely than not and a reliable estimate was
determinable. Subsequent adjustments to the contingent consideration were recognized as part of goodwill.



Assets in custody or managed by
the Group, such as investment funds and private pension funds (AFP funds), are not part of the Group’s consolidated financial
statements, Note 3(z).





F-17









Notes
to the consolidated financial statements (continued)



Net equity attributable to the
non-controlling interest is presented in the consolidated statements of financial position. Income attributable to the non-controlling
interest is presented separately in the consolidated income statements and the consolidated statements of comprehensive income.



Acquisitions of non-controlling
interest prior to January 1, 2010, were accounted for using the parent entity extension method, whereby, the difference between
the consideration and the book value of the share of the net assets acquired were recognized in goodwill.



Acquisitions of non-controlling
interest starting January1, 2010, are recorded directly in equity; the difference between the amounts paid and the share of the
net assets acquired is a debit or credit to equity. Therefore, no additional goodwill is recorded upon purchase of non-controlling
interest nor a gain or loss is recognized upon disposal of a non-controlling interest.



Associates -



An associate is an entity over
which the Group has significant influence but not control. Investments in these entities represent shareholding between 20 and
50 percent of the voting rights; and are recognized initially at cost and then are accounted for by the “equity method”.
The Group does not have significant investments in associates; therefore, they are included in the caption “Other assets”
in the consolidated statements of financial position; gains resulting from the use of the equity method of accounting are included
in the caption “Other income” of the consolidated income statement.





F-18









Notes to the consolidated financial
statements (continued)



As of December 31, 2011 and
2010, the following entities comprise the Group (individual financial statements data is presented in accordance with IFRS and
before eliminations for consolidation purposes, except for the elimination of Credicorp’s treasury stock and its related
dividends):



|Entity                                                                                |  | Percentage of participation (direct and
    indirect) |        |  | Assets |  |        | Liabilities |  |  | Equity     |  |  | Net income (loss) |           
|------------------------------------------------------------------------------------- |  | ----------------------------------------------------- | ------ |  | ------ |  | ------ | ----------- |  |  | ---------- |  |  | ----------------- | ----------
|                                                                                      |  | 2011                                                  |        |  | 2010   |  |        | 2011        |  |  | 2010       |  |  | 2011              |           
|                                                                                      |  | %                                                     |        |  | %      |  |        | US$(000)    |  |  | US$(000)   |  |  | US$(000)          |           
|                                                                                      |  |                                                       |        |  |        |  |        |             |  |  |            |  |  |                   |           
|Banco de
    Crédito del Perú and Subsidiaries (i)                                    |  |                                                       | 97.65  |  |        |  | 97.60  |             |  |  | 26,976,489 |  |  |                   | 25,376,947
|Atlantic Security Holding
    Corporation and Subsidiaries (ii)                       |  |                                                       | 100.00 |  |        |  | 100.00 |             |  |  | 1,586,083  |  |  |                   | 1,400,479 
|El Pacífico Peruano-Suiza
    Compañía de Seguros y Reaseguros and Subsidiaries (iii) |  |                                                       | 97.68  |  |        |  | 97.26  |             |  |  | 2,148,960  |  |  |                   | 1,781,952 
|Prima AFP S.A. (iv)                                                                   |  |                                                       | 99.99  |  |        |  | 99.99  |             |  |  | 270,239    |  |  |                   | 276,140   
|Grupo Crédito
    S.A. (v)                                                            |  |                                                       | 99.99  |  |        |  | 99.99  |             |  |  | 101,029    |  |  |                   | 37,590    
|CCR Inc. (vi)                                                                         |  |                                                       | 99.99  |  |        |  | 99.99  |             |  |  | 760,772    |  |  |                   | 962,028   
|Credicorp Securities
    Inc. (vii)                                                   |  |                                                       | 99.99  |  |        |  | 99.99  |             |  |  | 2,825      |  |  |                   | 4,048     
|BCP Emisiones Latam
    1 S.A. (viii)                                                 |  |                                                       | 100.00 |  |        |  | 100.00 |             |  |  | 118,451    |  |  |                   | 126,855   
|Tarjeta Naranja Perú
    S.A.C. (ix)                                                  |  |                                                       | 76.00  |  |        |  | -      |             |  |  | 8,277      |  |  |                   | -         



| | (i) | Banco de Crédito del Perú (BCP) is a universal bank incorporated in Peru in 1889. Its activities are supervised
by the Superintendence of Banking, Insurance and AFP (the Peruvian banking, insurance and AFP authority, hereafter “the SBS”
for its Spanish acronym). During 2010, Credicorp transferred BCP shares representing approximately 84.9 percent of BCP capital
stock to its fully owned subsidiary Grupo Crédito S.A. This transfer had no effect in the accompanying consolidated financial
statements; no gains or losses arose from the transfer. During 2011, the Group, through Grupo Crédito S.A., acquired 0.0429
percent of BCP shares owned by non-controlling interest (during 2010, Credicorp acquired 0.19 percent of BCP shares owned by non-controlling
interest).BCP and Subsidiaries hold as of December 31, 2011 and 2010, 95.92 percent of the capital stock of Banco de Crédito
de Bolivia (BCB), a universal bank operating in Bolivia (Credicorp holds directly an additional 4.08 percent). As of December 31,
2011, BCB’s assets, liabilities, equity and net income amounted to US$1,195.5, US$1,083.9, US$111.6 and US$22.3 million,
respectively (US$1,122.0, US$1,026.4, US$95.6 and US$15.8 million, respectively, as of December 31, 2010).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | Atlantic Security Holding Corporation (ASHC) is incorporated in the Cayman Islands; its main activity is to invest in capital
stock. Its most significant subsidiary is Atlantic Security Bank (ASB), which is incorporated in the Cayman Islands and operates
through branches and offices in Grand Cayman and the Republic of Panama; its main activity is private and institutional banking
services and trustee administration.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | PPS is incorporated in Peru, it provides property, casualty, life, health and personal insurance. Its main subsidiaries are
PPV and EPS. PPS and its subsidiaries activities are supervised by the SBS. During 2011, Credicorp transferred PPV shares representing
approximately 24 percent of PPV capital stock to its subsidiary PPS. This transfer had no effect in the accompanying consolidated
financial statements; no gains or losses arose from the transfer. During 2011, the Group, through Grupo Crédito S.A., acquired
0.079 percent of PPS shares owned by non-controlling interest. As explained in more detail in Note 2(a), during 2011, EPS acquired
various Peruvian entities specialized in providing health care services.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv) | Prima AFP S.A. is a private pension fund administrator incorporated in Peru, its activities are supervised by the SBS.
| | ---- | ----------------------------------------------------------------------------------------------------------------------



| | (v) | Grupo Crédito S.A. is incorporated in Peru, its main activity is to invest in listed and not listed securities in Peru;
it also holds part of the Group’s shares in BCP, Prima AFP S.A., PPS and BCP Emisiones Latam 1 S.A. Grupo Crédito
S.A. balances are presented net of its investments in said entities.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi) | CCR Inc., is a special purposes entity incorporated in The Bahamas in 2001, its main activity is to manage certain loans granted
to BCP by foreign financial entities, see Note 15(a)(vi). These loans are collateralized by transactions performed by BCP. As of
December 31, 2011 and 2010, the negative equity is generated by unrealized losses from cash flow hedges derivatives.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vii) | Credicorp Securities Inc., is incorporated in the United States of America and began operations on January, 2003; it provides
securities brokerage services, mainly to retail customers in Latin America.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (viii) | BCP Emisiones Latam 1 S.A., is a special purposes entity incorporated in Chile in 2009, through which the Group issued corporate
bonds, see Note 15(a)(ii).
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ix) | Tarjeta Naranja Perú S.A.C., was incorporated in Peru, in 2011. Its main activity is to promote the use of a credit
card named “Tarjeta Naranja”.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------





F-19







Notes to the consolidated financial
statements (continued)



| | (c) | Foreign currency translation -
| | --- | ------------------------------



The Group has determined that its
functional and presentation currency is the United States Dollar (U.S. Dollar or US$), because it reflects the economic substance
of the underlying events and circumstances relevant to the Group, insofar as its main operations and/or transactions in the different
countries where the Group operates such as: loans granted, financing obtained, sale of insurance premiums, interest income and
expense, and that an important percentage of wages and purchases; are established and settled in U.S. Dollars.



Financial statements of each of
Credicorp’s subsidiaries are measured using the currency of the country in which each entity operates and are translated
into U.S. Dollars (functional and presentation currency) as follows:



| | - | Monetary assets and liabilities are translated at the free market exchange rate at the date of the consolidated statements
of financial position.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Non-monetary accounts are translated at the free market exchange rate prevailing at the transaction date.
| | - | ---------------------------------------------------------------------------------------------------------



| | - | Income and expenses, except for those related to non-monetary assets which are translated at the free market exchange rate
prevailing at the transaction date, are translated monthly at the average monthly exchange rate.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | All resulting translation differences are recognized in the consolidated statements of income.
| |  | ----------------------------------------------------------------------------------------------



| | (d) | Income and expense recognition from banking activities -
| | --- | --------------------------------------------------------

Interest income and expense for
all interest-bearing financial instruments, including those related to financial instruments classified as held for trading or
designated at fair value through profit or loss, are recognized within “Interest and dividend income” and “Interest
expense” in the consolidated statements of income using the effective interest rate method, which is the rate that discounts
estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate,
to the net carrying amount of the financial asset or financial liability.



| |  | Interest income is suspended when collection of loans become doubtful, when loans are overdue more than 90 days or when the
borrower or securities issuer defaults, if earlier than 90 days; such income is excluded from interest income until collected.
Uncollected income on such loans is provisioned. When Management determines that the debtor’s financial condition has improved,
the recording of interest thereon is reestablished on an accrual basis.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Interest income includes coupons
earned on fixed income investment and trading securities and the accrued discount and premium on financial instruments. Dividends
are recognized as income when they are declared.





F-20









Notes to the consolidated financial
statements (continued)



Fees and commission income are
recognized on an accrual basis. Contingent credit fees for loans that are likely to be drawn down and other credit related fees
are deferred (together with any direct incremental costs) and recognized as an adjustment to the effective interest rate on the
loan.



All other revenues and expenses
are recognized on an accrual basis.



| | (e) | Insurance activities -
| | --- | ----------------------



Accounting policies for insurance
activities

For the adoption of IFRS 4 “Insurance
contracts”, Management concluded that USGAAP used as of December 31, 2004 was the relevant framework to be used, as permitted
by IFRS 4.



Product classification:



Insurance contracts are those contracts
when the Group (the insurer) has accepted significant insurance risk from another party (the policyholder) by agreeing to compensate
the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. This definition
also includes reinsurance contracts that the Group holds. As a general guideline, the Group determines whether it has significant
insurance risk by comparing benefits paid with benefits payable if the insured event did not occur.
Insurance contracts can also transfer financial risk.



Once a contract has been classified
as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces
significantly during this period, unless all rights and obligations are extinguished or expire.



Life insurance contracts offered
by the Group include retirement, disability, survival fixed pensions, traditional life and unit linked insurance contracts. The
non-life insurance contracts mainly include motor, household, commercial and healthcare.



Reinsurance:



The Group cedes insurance risk
in the normal course of the operations for all of its businesses. Reinsurance assets represent balances due from reinsurance companies.
Reinsurance ceded is placed on both a proportional and non–proportional basis.



Amounts recoverable from reinsurers
are estimated in a manner consistent with the outstanding claims provision or settled claims and ceded premiums associated with
the reinsurer’s policies and are in accordance with the related reinsurance contract.



Reinsurance assets are reviewed for impairment at
each reporting date or more frequently when an indication of impairment arises during the reporting year. Impairment occurs when
there is objective evidence as a result of an event that occurred after initial recognition of the reinsurance asset that the
Group may not receive all outstanding amounts due under the terms of the contract and the event has a reliably measureable impact
on the amounts that the Group will receive from the reinsurer. The impairment loss is recorded in the consolidated statements
of income.



F-21









Notes to the consolidated financial statements (continued)



Ceded reinsurance arrangements
do not relieve the Group from its obligations to a policyholder.



The Group also assumes reinsurance
risk in the normal course of business for non-life insurance contracts when applicable. Premiums and claims on assumed reinsurance
are recognized as revenue or expenses in the same manner as they would be if the reinsurance were considered direct business, taking
into account the product classification of the reinsured business.



Reinsurance liabilities represent
balances due to reinsurance companies. Amounts payable are estimated in a manner consistent with the related reinsurance contract.



Premiums and claims are presented
on a gross basis for both ceded and assumed reinsurance, see notes 22 and 23. Reinsurance assets or liabilities are derecognized
when the contractual rights are extinguished or expire or when the contract is transferred to another party. Reinsurance contracts
that do not transfer significant insurance risk are not material to the insurance segment.



Insurance receivables



Insurance receivables are recognized
when due and measured on initial recognition at the fair value of the consideration received or receivable. Subsequent to initial
recognition, insurance receivables are measured at amortized cost. As of December 31, 2011 and 2010 the carrying value of the insurance
receivables is similar to its fair value due to its short term. The carrying value of insurance receivables is reviewed for impairment
whenever events or circumstances indicate that the carrying amount may not be recoverable, with the impairment loss recorded in
the consolidated statements of income. Insurance receivables are derecognized when the derecognition criteria for financial assets,
as described in Note 3(g), has been met.



“Unit- Linked” assets



“Unit- Linked” assets
represent financial instruments held for purposes of funding a group of life insurance contracts and for which investment gains
and losses accrue directly to the policyholders who bear the investment risk. Each account has specific objectives, and the financial
assets are carried at fair value. The balance of each account is legally segregated and is not subject to claims that arise out
of any other business of the Group. The liabilities for these accounts are equal to the account assets, net of the commission that
the Group charges for the management of these contracts.



Deferred acquisition costs (DAC)



Those direct costs that vary with
and are related to traditional life and unit linked insurance contracts are deferred; all other acquisition costs are recognized
as an expense when incurred. The acquisition costs comprise primarily agent commissions related to the underwriting and policy
issuance costs.



Subsequent to initial recognition,
these costs are amortized on a straight line basis based on the averaged expiration period of the related insurance contracts.
Amortization is recorded in the consolidated statements of income.



F-22









Notes to the consolidated financial
statements (continued)



An impairment review is performed
at each reporting date or more frequently when an indication of impairment arises. When the recoverable amounts is less than the
carrying value an impairment loss is recognized in the consolidated statements of income. DAC is also considered in the liability
adequacy test for each reporting period.



Reinsurance commissions



Commissions receivable on outwards
reinsurance contracts are deferred and amortized on a straight line basis over the term of the expected coverage of the insurance
contracts.



Insurance contract liabilities



| | (i) | Life insurance contracts liabilities
| | --- | ------------------------------------



Life insurance liabilities are
recognized when contracts are entered into.



The liabilities of retirement,
disability and survival fixed pensions are determined as the sum of the discounted value of expected future pensions to be paid
during a defined or non defined period, computed upon the basis of mortality tables and discount interest rates. Traditional life
and unit linked insurance contract liabilities are determined as the sum of the discounted value of expected future benefits, claims
handling, administration expenses, policyholder options and guarantees and investment income, less the discounted value of the
expected theoretical premiums that would be required to meet the future cash outflows.



The liabilities of retirement,
disability and survival fixed pensions and traditional life insurance contracts are based on assumptions established at the time
the contract was issued. Current assumptions are used to update the interest accrued for unit linked insurance contracts.



Furthermore, the liability for
life insurance contracts comprises the provision for unearned premiums and unexpired risks, as well as for claims outstanding,
which includes an estimate of the incurred but non-reported claims to the Group (hereinafter “IBNR”). IBNR reserves
as of December 31, 2011 and 2010, were determined on the basis of the Chain Ladder methodology (a generally accepted actuarial
method), whereby the weighted average of past claim development is projected into the future; the projection is based on the ratios
of cumulative past claims. Adjustments to the liabilities at each reporting date are recorded in the consolidated statements of
income. The liability is derecognized when the contract expires, is discharged or is cancelled.



At each reporting date, an assessment
is made of whether the recognized life insurance liabilities are adequate, net of related DAC, by using an existing liability adequacy
test as laid out under IFRS 4. As of December 31, 2011 and 2010, Management determined that the liabilities were adequate and;
therefore, it has not recorded any additional life insurance liability.





F-23









Notes to the consolidated financial
statements (continued)



| | (ii) | Non-life insurance contract liabilities (which comprises general insurance and healthcare)
| | ---- | ------------------------------------------------------------------------------------------



Non-life insurance contract liabilities
are recognized when contracts are entered into.



These liabilities are known as
the outstanding claims provision, which are based on the estimated ultimate cost of all claims incurred but not settled at the
date of the consolidated statements of financial position, whether reported or not, together with related claims handling costs
and reduction for the expected value of salvage and other recoveries. Delays can be experienced in the notification and settlement
of certain types of claims, therefore the ultimate cost of these cannot be known with certainty at the date of the consolidated
statements of financial position. IBNR are estimated and included in the provision (liabilities). IBNR reserves as of December
31, 2011 and 2010, were determined on the basis of the Bornhuetter - Ferguson methodology – BF (a generally accepted actuarial
method), which considers a statistical analysis of the recorded loss history, the use of projection methods and, when appropriate,
qualitative factors that reflect present conditions or trends that could affect historical data. No provision for equalization
or catastrophe reserves is recognized. The liabilities are derecognized when the contract expires, is discharged or is cancelled.



The provision for unearned premiums
represents premiums received for risks that have not yet expired. Generally the reserve is released over the term of the contract
and is recognized as premium income.



At each reporting date the Group
reviews its unexpired risk and an existing liability adequacy test as laid out under IFRS 4 to determine whether there is any overall
excess of expected claims over unearned premiums. If these estimates show that the carrying amount of the unearned premiums is
inadequate, the deficiency is recognized in the consolidated income statement by setting up a provision for liability adequacy.
As of December 31, 2011 and 2010, Management determined that the liabilities were adequate; therefore, it has not recorded any
additional non life insurance liabilities.



Income recognition



| | (i) | Gross premiums
| | --- | --------------

Life insurance contracts



Gross recurring premiums on life
contracts are recognized as revenue when due from policyholder. For single premium business, revenue is recognized on the date
on which the policy is effective.



Non-life insurance contracts



Gross
non-life insurance direct and assumed premiums comprise the total premiums written and are recognized at the contract inception
as a receivable. At the same time, it is recorded a reserve for unearned premiums which represents
premiums for risks that have not yet expired. Unearned premiums are recognized into income over the contract period which is also
the coverage and risk period.





F-24









Notes to the consolidated financial
statements (continued)



| | (ii) | Fees and commission income
| | ---- | --------------------------



Unit linked insurance contract
policyholders are charged for policy administration services, investment management services, surrenders and other contract fees.
These fees are recognized as revenue in the consolidated statements of income when due.



Benefits, claims and expenses recognition



| | (i) | Gross benefits and claims
| | --- | -------------------------



Gross benefits and claims for
life insurance contracts include the cost of all claims arising during the year including internal and external claims handling
costs that are directly related to the processing and settlement of claims. Death, survival and disability claims are recorded
on the basis of notifications received. Pension payments are recorded when due.



General insurance and health claims
includes all claims occurring during the year, whether reported or not, related internal and external claims handling costs that
are directly related to the processing and settlement of claims, a reduction for the value of salvage and other recoveries, and
any adjustments to claims outstanding from previous years.



| | (ii) | Reinsurance premiums
| | ---- | --------------------



Comprise the total premiums payable
for the whole coverage provided by contracts entered in the period and are recognized on the date on which the policy incepts.
Unearned reinsurance premiums are deferred over the term of the underlying insurance contract.



| | (iii) | Reinsurance claims
| | ----- | ------------------



Reinsurance claims are recognized
when the related gross insurance claim is recognized according to the terms of the relevant contract.



| | (f) | Financial Instruments: Initial recognition and subsequent measurement -
| | --- | -----------------------------------------------------------------------



The Group classifies its financial
instruments in one of the categories defined by IAS 39: financial assets and financial liabilities at fair value through profit
or loss; loans and receivables; available-for-sale financial investments and other financial liabilities. The Group determines
the classification of its financial instruments at initial recognition.



The classification of financial
instruments at initial recognition depends on the purpose and the Management intention for which the financial instruments were
acquired and their characteristics. All financial instruments are measured initially at their fair value plus any directly attributable
incremental cost of acquisition or issue, except in the case of financial assets and financial liabilities recorded at fair value
through profit or loss.



Purchases or sales of financial
assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular
way trades) are recognized on the trade date, for example the date that the Group commits to purchase or sell the asset. Derivatives
are recognized on a trade date basis.



F-25









Notes to the consolidated financial
statements (continued)



| | (i) | Financial assets at fair value through profit or loss
| | --- | -----------------------------------------------------



Financial assets at fair value
through profit or loss includes financial assets held for trading and financial assets designated at fair value through profit
or loss, which designation is upon initial recognition and in an instrument by instrument basis. Derivatives financial instrument
are also categorized as held for trading unless they are designated as hedging instruments.



Financial assets are classified
as held for trading if they are acquired for the purpose of selling or repurchasing in the near term, and are presented in the
caption “Trading securities” of the consolidated statements of financial position.



Management may only designate
an instrument at fair value through profit or loss upon initial recognition when the following criteria are met:



| | - | the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring assets
or liabilities or recognizing gains or losses on them on a different basis; or
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | the assets and liabilities are part of a group of financial assets, financial liabilities or both which are managed and their
performance evaluated on a fair value basis, in accordance with a documented risk management or investment strategy; or
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | the financial instrument contains one or more embedded derivatives, which significantly modify the cash flows that otherwise
would be required by the contract.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



Changes in fair value of designated
financial assets through profit or loss upon initial recognition are recorded in the consolidated income statement caption “Net
gain on financial assets designated at fair value through profit and loss”. Interest earned is accrued in the consolidated
income statement in the caption “Interest and dividend income”, according to the terms of the contract. Dividend income
is recorded when the collection right has been established.



| | (ii) | Loans and receivables
| | ---- | ---------------------



Loans and receivables are non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market.



After initial measurement, loans
and receivables are subsequently measured at amortized cost using the effective interest rate method, less any allowance for impairment.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral
part of the effective interest rate. The effective interest rate amortization is recognized in the consolidated income statement
in the caption “Interest and dividend income”. Losses from impairment are recognized in the consolidated statements
of income in the caption “Provision for loan losses”.



Direct loans are recorded when
disbursement of funds to the clients are made. Indirect (off-balance sheet) loans are recorded when documents supporting such facilities
are issued. Likewise, Credicorp considers as refinanced or restructured those loans that change their payment schedules due to
difficulties in the debtor’s ability to repay the loan.



F-26









Notes to the consolidated financial
statements (continued)



An allowance for loan losses is
established if there is objective evidence that the Group will not be able to collect all amounts due according to the original
contractual terms of the loans. The allowance for loan losses is established based in an internal risk classification and considering
any guarantees and collaterals received, Note 3(i) and 29.1.



| | (iii) | Available-for-sale financial investments
| | ----- | ----------------------------------------



Available-for-sale financial investments
include equity investments and debt securities. Equity investments classified as available-for-sale are those that are neither
classified as held for trading nor designated at a fair value through profit or loss. Debt securities in this category are those
that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response
to changes in the market conditions.



After initial recognition, available-for-sale
financial investments are measured at fair value with unrealized gains or losses recognized as other comprehensive income in the
available-for-sale reserve, net of its corresponding deferred tax and non-controlling interest, until the investment is derecognized,
at which time the cumulative gain or loss is recognized in the consolidated income statement in the caption “Net gain on
sale of securities”, or determined to be impaired, at which time the impaired amount is recognized in the consolidated statements
of income in the caption “Impairment loss on available–for–sale investments” and removed from the available-for-sale
reserve.



Interest and dividends earned
are recognized in the consolidated income statement in the caption “Interest and dividend income”. Interest earned
is reported as interest income using the effective interest rate method and dividends earned are recognized when collection rights
are established.



Estimated fair values are based
primarily on quoted prices or, if quoted market prices are not available, discounted expected cash flows using market rates commensurate
with the credit quality and maturity of the investment.



The Group evaluates whether the
ability and intention to sell its available-for-sale financial assets in the near term is still appropriate. When, in rare circumstances,
the Group is unable to trade these financial assets due to inactive markets and management’s intention to do so significantly
changes in the foreseeable future, the Group may elect to reclassify these financial assets. Reclassification to loans and receivables
is permitted when the financial assets meet the definition of loans and receivables and the Group has the intent and ability to
hold these assets for the foreseeable future or until maturity.



Reclassification to the held-to-maturity
category is permitted only when the Group has the ability and intention to hold the financial asset accordingly.



As of December, 31, 2011 and 2010,
the Group did not reclassify any of its available-for- sale financial investments.





F-27







Notes to the consolidated financial
statements (continued)



| | (iv) | Other financial liabilities
| | ---- | ---------------------------



After initial measurement other
financial liabilities are subsequently measured at amortized cost using the effective interest rate method. Amortized cost includes
any issuance discount or premium and directly attributable transaction costs that are an integral part of the effective interest
rate.



| | (g) | Derecognition of financial assets and financial liabilities -
| | --- | -------------------------------------------------------------



Financial assets



A financial asset (or, where applicable
a part of a financial asset or a part of a group of similar financial assets) is derecognized when: (i) the rights to receive cash
flows from the asset have expired; or (ii) the Group has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through”
arrangement; and either the Group has transferred substantially all the risks and rewards of the asset, or the Group has neither
transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.



Financial liabilities



A financial liability is derecognized
when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified,
such exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and
the difference in the respective carrying amount is recognized in the consolidated income statement



| | (h) | Offsetting financial instruments -
| | --- | ----------------------------------



Financial assets and liabilities
are offset and the net amount is reported in the consolidated statements of financial position when there is a legally enforceable
right to offset the recognized amounts and Management has the intention to settle on a net basis, or realize the assets and settle
the liability simultaneously.



| | (i) | Impairment of financial assets -
| | --- | --------------------------------



The Group assesses at each date
of the consolidated statements of financial position whether there is any objective evidence that a financial asset or a group
of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there
is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset
(an incurred “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the
financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications
that the borrower or a group of borrowers is experiencing significant financial difficulty, default or delinquency in interest
or principal payments, the probability that they will go bankrupt or other legal financial reorganization process and where observable
data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions
that correlate with defaults. Criteria used for each category of financial assets are as follows:



| | (i) | Loans and receivables
| | --- | ---------------------



For loans and receivables that
are carried at amortized cost, the Group first assesses whether objective evidence of impairment exists for financial assets that
are individually significant, or collectively, for financial assets that are not individually significant. If the Group determines
that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes
the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment.
Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not
included in a collective assessment of impairment.





F-28









Notes to the consolidated financial
statements (continued)



If there is objective evidence
that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset carrying amount
and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred).
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in
the consolidated income statement. Interest income, if applicable, is accrued on the reduced carrying amount based on the original
effective interest rate of the asset. A loan, together with the associated allowance, is written off when classified as loss, is
fully provisioned and there is real and verifiable evidence that the loan is irrecoverable and collection efforts concluded without
success, impossibility of foreclosures or all collateral has been realized or has been transferred to the Group. If in any subsequent
year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was
recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account.



If in the future a write-off loan
is later recovered, the recovery is recognized in the consolidated statements of income, as a credit to the caption “Provision
for loan losses”.



The present value of the estimated
future cash flows is discounted at the financial asset’s original effective interest rate. If a loan has a variable interest
rate, the discount rate for measuring any impairment loss is the current effective interest rate. The calculation of the present
value of the estimated future cash flows of a collateralized financial asset reflects the cash flows that may result from foreclosure
less costs for obtaining and selling the collateral, whether or not foreclosure is probable.



For a collective evaluation impairment,
financial assets are grouped considering the Group’s internal credit grading system, which considers credit risk characteristics;
for example: asset type, industry, geographical location, collateral type and past-due status and other relevant factors.



F-29











Notes to the consolidated financial
statements (continued)



Future cash flows from a group
of financial assets that are collectively evaluated for impairment are estimated on the basis of historical loss experience for
assets with similar credit risk characteristics to those in the group. Historical loss experience is adjusted on the basis of current
observable data to reflect the effects of current conditions that did not affect the years on which the historical loss experience
is based and to remove the effects of conditions in the historical period that do not currently exists. The methodology and assumptions
used are reviewed regularly to reduce any differences between loss estimates and actual loss experience.



| | (ii) | Available-for-sale financial investments
| | ---- | ----------------------------------------



For available-for-sale financial
investments, the Group assesses at each date of the consolidated statements of financial position whether there is objective evidence
that an investment or a group of investments is impaired.



In the case of equity investments,
objective evidence would include a significant or prolonged decline in its fair value below cost. “Significant” is
to be evaluated against the original cost of the investment and “prolonged” against the period in which the fair value
has been below its original cost. Where there is evidence of impairment, the cumulative loss (measured as the difference between
the acquisition cost and the current fair value, less any previously recognized impairment loss) is removed from investments available-for-sale
reserve of the consolidated statements of changes in equity and recognized in the consolidated income statement. Impairment losses
on equity investments are not reversed through the consolidated income statement; increases in their fair value after impairment
are recognized directly in the consolidated statements of comprehensive income.



In the case of debt instruments,
impairment is assessed based on the same criteria as financial assets carried at amortized cost (loans and receivables). However,
the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current
fair value, less any impairment loss on that investment previously recognized in the consolidated statements of income. Future
interest income is based on the reduced carrying amount and is accrued using the interest rate used to discount the future cash
flows for the purpose of measuring the impairment loss. Interest income is recorded as part of “Interest and dividend income”
of the consolidated income statement. If in a subsequent year, the fair value of a debt instrument increases and the increase can
be objectively related to an event occurring after the impairment loss was recognized in the consolidated income statement, the
impairment loss is reversed through the consolidated statements of income.





F-30









Notes to the consolidated financial
statements (continued)



| | (iii) | Renegotiated loans
| | ----- | ------------------



When a loan is modified, it is
no longer considered as past due but it maintains its previous classification as impaired or not impaired. If the debtor complies
with the new agreement during the following six months, and an analysis of its payment capacity supports a new improved risk classification,
it is classified as not impaired. If subsequent to the loan modification the debtor fails to comply with the new agreement, it
is considered as impaired and past due.



| | (j) | Leases -
| | --- | --------



The determination of whether an
arrangement is, or contains, a lease is based in the substance of the arrangement at inception date: whether fulfillment of the
arrangement is dependent on the use of a specific asset or assets on the arrangement conveys a right to use the asset even if that
right is not explicitly specified in an arrangement.



Operating leases -



Leases in which a significant portion
of the risks and benefits of the asset are hold by the lessor are classified as operating leases. Under this concept the Group
has mainly leases used as banking branches.



When an operating lease is terminated
before the lease period has expired, any penalty payment to the lessor is recognized as an expense in the period in which termination
takes place.



Finance leases -



Finance leases are recognized as
granted loans at the present value of the future lease collections. The difference between the gross receivable amount and the
present value of the loan is recognized as unearned interest. Lease income is recognized over the term of the lease agreement using
the effective interest rate method, which reflects a constant periodic rate of return.



| | (k) | Property, furniture and equipment -
| | --- | -----------------------------------



Property, furniture and equipment
are stated at historical acquisition cost less accumulated depreciation and impairment losses, if applicable. Historical acquisition
costs include expenditures that are directly attributable to the acquired property, furniture or equipment. Maintenance and repair
costs are charged to the consolidated income statement; significant renewals and improvements are capitalized when it is probable
that future economic benefits, in excess of the originally assessed standard of performance, will flow from the use of the acquired
property, furniture or equipment.





F-31









Notes to the consolidated financial
statements (continued)



Land is not depreciated. Depreciation
is calculated using the straight-line method over their estimated useful life, as follows:



|                                 | Years
|-------------------------------- | -----
|                                 |      
|Buildings and other construction | 33   
|Installations                    | 10   
|Furniture and fixtures           | 10   
|Vehicles and equipment           | 5    
|Computer hardware                | 4    



An item of property, furniture
and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in the consolidated income statement.



Asset’s residual value, useful
life and the selected depreciation method are periodically reviewed to ensure that they are consistent with current economic benefits
and life expectations.



| | (l) | Seized assets -
| | --- | ---------------



Seized assets are recorded at the
lower of cost or estimated market value, which is obtained from valuations made by independent appraisals. Reductions in book values
are recorded in the consolidated statements of income.



| | (m) | Intangible assets -
| | --- | -------------------



Comprise internal developed and
acquired software licenses used by the Group. Acquired software licenses are measured on initial recognition at cost. These intangible
assets are amortized using the straight-line method over their estimated useful life (between 3 and 5 years).



Intangible assets identified as
a consequence of the acquisition of subsidiaries and other intangible assets, are recognized on the consolidated statements of
financial position at their fair values determined on the acquisition date and are amortized using the straight line method over
their estimated useful life; as follows:



|                                         | Years    
|---------------------------------------- | ---------
|                                         |          
|Client relationships – Prima AFP         | 20       
|Client relationships – Edyficar          | 10       
|Client relationships – Private hospitals | 2, 3 y 14
|Brand name – Edyficar                    | 20       
|Brand name – Private hospitals           | 30       
|Licenses – Private hospitals             | 35       
|Rights of use                            | 5        
|Other                                    | 5        





F-32







Notes to the consolidated financial
statements (continued)



Gains or losses arising from derecognition
of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and
are recognized in the consolidated statements of income when the asset is derecognized.



| | (n) | Goodwill -
| | --- | ----------



Goodwill is initially measured
at cost being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interest
over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net
assets of the subsidiary acquired, the difference is recognized in profit or loss.



After initial recognition, goodwill
is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually and when circumstances indicate
that the carrying value may be impaired. For the purpose of impairment testing, goodwill acquired in a business combination is,
from the acquisition date, allocated to each of the Group’s cash generating unit’s (CGU) that are expected to benefit
from the combination.



Impairment is determined for goodwill
by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. Where the recoverable amount
of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be
reversed in future periods.



| | (o) | Impairment of non-financial assets -
| | --- | ------------------------------------



The Group assesses at each reporting
date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing
for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or CGU fair value less costs to sell and its value in use and is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.



When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less
costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share
prices for publicly traded subsidiaries or other available fair value indicators.



For non-financial assets, excluding
goodwill, an assessment is made at each reporting date whether there is any indication that previously recognized impairment losses
may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized
impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount
since the last impairment loss was recognized.





F-33







Notes to the consolidated financial
statements (continued)



The reversal is limited so that
the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined,
net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated
statements of income.



| | (p) | Due from customers on acceptances -
| | --- | -----------------------------------



Due from customers on acceptances
corresponds to accounts receivable from customers for import and export transactions, whose obligations have been accepted by the
Group. The obligations that must be assumed by the Group for such transactions are recorded as liabilities.



| | (q) | Financial guarantees -
| | --- | ----------------------



In the ordinary course of business,
the Group issues financial guarantees, such as letters of credit, guarantees and acceptances. Financial guarantees are initially
recognized at fair value (which is equivalent at that moment to the fee received) as “Other liabilities” in the consolidated
statements of financial position. Subsequent to initial recognition, the Group’s liability under each guarantee is measured
at the higher of the amount initially recognized less, when appropriate, cumulative amortization recognized in the consolidated
income statement, and the best estimate of expenditure required to settle any financial obligation arising as a result of the financial
guarantee.



Any increase in the liability relating
to a financial guarantee is included in the consolidated statements of income. The fee received is recognized in the consolidated
statement of income in the caption “Banking services commissions” on a straight line basis over the life of the granted
financial guarantee.



| | (r) | Defined contribution pension plan -
| | --- | -----------------------------------



The Group only operates a defined
contribution pension plan. The contribution payable to a defined contribution pension plan is in proportion to the services rendered
to the Group by the employees and it is recorded as an expense in the caption “Salaries and employees benefits” of
the consolidated income statement. Unpaid contributions are recorded as a liability.



| | (s) | Provisions -
| | --- | ------------



Provisions are recognized when
the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow or resources
embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. The expense relating to any provision is presented in the consolidated income statement net of any reimbursement. If
the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where
appropriate, the specific risks of the liability. Where discounting is used, the increase in the provision due to the passage of
time is recognized as a finance cost.





F-34









Notes to the consolidated financial
statements (continued)



| | (t) | Contingencies -
| | --- | ---------------



Contingent liabilities are not
recognized in the consolidated financial statements. They are disclosed in notes, unless the probability of an outflow of resources
is remote. Contingent assets are not recorded in the financial statements; they are disclosed if it is probable that an inflow
of economic benefits will be realized.



| | (u) | Income tax -
| | --- | ------------



Income tax is computed based on
individual financial statements of Credicorp and each one of its Subsidiaries.



Deferred income tax reflect the
effects of temporary differences between the carrying amounts of assets and liabilities for accounting purposes and the amounts
determined for tax purposes. Deferred assets and liabilities are measured using the tax rates expected to be applied to taxable
income in the years in which temporary differences are expected to be recovered or eliminated. The measurement of deferred assets
and deferred liabilities reflects the tax consequences that arise from the manner in which Credicorp and its Subsidiaries expect,
at the date of the consolidated statements of financial position, to recover or settle the carrying amount of its assets and liabilities.



Deferred tax assets and liabilities
are recognized regardless of when the timing differences are likely to reverse. Deferred tax assets are recognized when it is more
likely than not, that future taxable profit will be available against which the temporary difference can be utilized. At the date
of the consolidated statements of financial position, Credicorp and its Subsidiaries assess unrecognized deferred assets and the
carrying amount of recognized deferred assets.



Credicorp and its Subsidiaries
determine the deferred income tax considering the tax rate applicable to its undistributed earnings; any additional tax on dividends
distribution is recorded on the date a liability is recognized.



| | (v) | Earnings per share -
| | --- | --------------------



Basic earnings per share is calculated
by dividing the net profit for the year attributable to Credicorp’s equity holders by the weighted average number of ordinary
shares outstanding during the year, excluding the average number of ordinary shares purchased and held as treasury stock.



Diluted earnings per share is calculated
by dividing the net profit attributable to Credicorp’s equity holders by the weighted average number of ordinary shares outstanding
during the year, excluding the average number of ordinary shares purchased and held as treasury stock, plus the weighted average
number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.





F-35







Notes to the consolidated financial
statements (continued)



| | (w) | Share-based payment transactions -
| | --- | ----------------------------------



| | (i) | Cash-settled transactions
| | --- | -------------------------



As explained in Note 18(a), until
2008 the Group granted a supplementary remuneration plan to certain employees who had at least one year serving Credicorp or any
of its Subsidiaries in the form of stock appreciation rights (SARs) over a certain number of Credicorp shares. SARs were granted
at a fixed price and are exercisable at that price, allowing the employee to obtain a gain in cash (“cash-settled transaction”)
arising from the difference between the fixed exercise price and the market price at the date the SARs are executed.



The SARs fair value is expensed
over the period up to the vesting date, with recognition of a corresponding liability. The liability is remeasured to fair value
at each reporting date up to and including the settlement date, with changes in fair value recognized in the consolidated income
statement caption “Salaries and employee benefits”. When the price or terms of the SARs are modified, any additional
expense is recorded in the consolidated statements of income.



| | (ii) | Equity-settled transactions
| | ---- | ---------------------------



As explain in Note 18(b), since
2009, a new supplementary remuneration plan was implemented to replace the SARs plan (see (i) above).



The cost of this equity-settled
plan is recognized, together with a corresponding increase in equity, over the period in which the service conditions are fulfilled,
ending on the date on which the relevant employees become fully entitled to the award (‘the vesting date”). The cumulative
expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the
vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest.



The expense is recorded in the
consolidated income statements caption “Salaries and employees benefits”. When the terms of an equity-settled award
are modified, the minimum expense recognized in the consolidated income statement “Salaries and employees benefits”
caption is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date
of modification.



The dilutive effect of outstanding
stock awards is reflected as a share dilution in the computation of diluted earnings per share, see Note 3(v).



| | (x) | Derivative financial instruments and hedge accounting -
| | --- | -------------------------------------------------------



Trading -



The Group negotiates derivative
financial instruments in order to satisfy client’s needs. The Group may also take positions with the expectation of profiting
from favorable movements in prices, rates or indexes.





F-36







Notes to the consolidated financial
statements (continued)



Part of transactions with derivatives
while providing effective economic hedges under Group’s risk management positions, do not qualify for hedge accounting under
the specific rules of IAS 39 and are, therefore, treated as trading derivatives.



Derivative financial instruments
are initially recognized in the consolidated statements of financial position at cost and subsequently are re-measured at their
fair value. Fair values are estimated based on the market exchange and interest rates. All derivatives are carried as assets when
fair value is positive and as liabilities when fair value is negative. Gain and losses for changes in their fair value are recorded
in the consolidated statements of income.



Hedge -



The Group uses derivative instruments
to manage exposures to interest rate and foreign currency. In order to manage particular risks, the Group applies hedge accounting
for transactions which meet the specified criteria.



At inception of the hedge relationship,
the Group formally documents the relationship between the hedged item and the hedging instrument, including the nature of the risk,
the objective and strategy for undertaking the hedge and the method that will be used to assess the effectiveness of the hedging
relationship.



Also, at the inception of the hedge
relationship, a formal assessment is undertaken to ensure the hedging instrument is expected to be highly effective in offsetting
the designated risk in the hedged item. Hedges are formally assessed at each reporting date. A hedge is regarded as highly effective
if changes in fair value or cash flows attributable to the hedged risk during the period for which the hedge is designated is expected
to offset in a range between 80 percent and 125 percent.



The accounting treatment is established
according to the nature of the hedged item and compliance with the hedge criteria.



| | (i) | Cash flow hedges
| | --- | ----------------



The effective portion of the gain
or loss on the hedging instrument is recognized directly in other comprehensive income in the cash flow hedge reserve, while any
ineffective portion is recognized immediately in the consolidated income statement.



Amounts recognized as other comprehensive
income are transferred to the consolidated statements of income when the hedged transaction affects profit or loss, such as when
the hedged financial income or financial expense is recognized or when a forecast sale occurs.





F-37









Notes to the consolidated financial
statements (continued)



If the forecast transaction or
firm commitment is no longer expected to occur, the cumulative gain or loss previously recognized in the cash flow hedges reserve
are transferred to the consolidated income statement. If the hedging instrument expires or is sold, terminated or exercised without
replacement or rollover, or if its designation as a hedge is revoked, any cumulative gain or loss previously recognized in the
cash flow hedge reserve remains in the cash flow hedges reserve until the forecast transaction or firm commitment affects profit
or loss.



| | (ii) | Fair value hedges
| | ---- | -----------------



The change in the fair value of
an interest rate hedging derivative is recognized in the consolidated statements of income in interest expense. The change in the
fair value of the hedged item attributable to the risk hedged is recorded as a part of the carrying value of the hedged item and
is also recognized in the consolidated income statement.



For fair value hedges relating
to consolidated items carried at amortized cost, the adjustment to carrying value is amortized through the consolidated statements
of income over the remaining maturity term. Effective interest rate amortization may begin as soon as an adjustment exists and
shall begin no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being
hedged.



If the hedged item is derecognized,
the unamortized fair value is recognized immediately in the consolidated income statement.



If the hedging instrument expires
or is sold, terminated or exercised, or where the hedge no longer meets the criteria for hedge accounting, the hedge relationship
is terminated. For hedged items recorded at amortized cost, the difference between the carrying value of the hedged item on termination
and the face value is amortized over the remaining term of the original hedge using the effective interest rate. If the hedged
item is derecognized, the unamortized fair value adjustment is recognized immediately in the consolidated income statement.



| | (iii) | Embedded derivates
| | ----- | ------------------



Derivatives embedded in host contracts
are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely
related to those of the host contracts, and the host contracts are not held for trading or designated at fair value through profit
or loss.



The Group has certificates indexed
to the price of Credicorp Ltd. shares that will be settled in cash, and investments indexed to certain life insurance contracts
liabilities, denominated “Unit Linked”. These instruments have been classified at inception by the Group as “Financial
instruments at fair value though profit or loss”, see Note 3(f)(i), and Note 7.





F-38







Notes to the consolidated financial
statements (continued)



| | (y) | Segment reporting -
| | --- | -------------------



The Group reports financial and
descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating
segments that meet specified criteria. Operating segments are a component of an entity for which separate financial information
is available that is evaluated regularly by the entity’s Chief Operating Decision Maker (“CODM”) in making decisions
about how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the
same basis as it is used internally for evaluating operating segment performance and deciding how to allocate resources to segments,
Note 26.



| | (z) | Fiduciary activities, management of funds and pension funds -
| | --- | -------------------------------------------------------------



The Group provides custody, trustee,
investment management and advisory services to third parties that result in the holding of assets on their behalf. These assets
and income arising thereon are excluded from these consolidated financial statements, as they are not assets of the Group, Note
29.8.



Commissions generated for these
activities are included in the caption “Other income” of the consolidated statements of income.



| | (aa) | Repurchase agreements -
| | ---- | -----------------------



Securities sold subject to repurchase
agreements (‘Repos’) are presented as pledged assets when the counterparty has the right to sell or repledge the collateral;
the counterparty liability is included in the caption “Other liabilities” in the consolidated statements of financial
position.



The difference between sale and
repurchase price is considered as interest and is accrued over the life of the related agreement using the effective interest rate
method.



| | (ab) | Cash and cash equivalents -
| | ---- | ---------------------------



For the purpose of the consolidated
statements of cash flows, cash and cash equivalents comprise balances of cash and non-restricted balances with central banks, overnight
deposits, time deposits and amounts due from banks with original maturities of three months or less.



| | (ac) | Reclassifications -
| | ---- | -------------------



When it is necessary, comparative
figures have been reclassified to conform to the current year presentation. Certain transactions were reclassified in the current
year presentation; in Management’s opinion those reclassifications are not significant to the consolidated financial statement
as of December 31, 2011 and 2010.





F-39









Notes to the consolidated financial
statements (continued)



| | (ad) | Recently issued International Financial Reporting Standards but not yet effective -
| | ---- | -----------------------------------------------------------------------------------



The Group decided not to early
adopt the following standards and interpretations that were issued but not effective as of December 31, 2011:



| | - | IAS 1 “Presentation of Items of Other Comprehensive Income — Amendments to IAS 1”. Effective for annual periods
beginning on or after July 1, 2012. The amendments to IAS 1 change the grouping of items presented in Other Comprehensive Income
(OCI). Items that could be reclassified (or recycled) to profit or loss at a future point in time (for example, upon derecognition
or settlement) would be presented separately from items that will never be reclassified.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IAS 12 “Income Taxes (amendment) – Recovery of Underlying Assets”. Effective for annual periods beginning
on or after January 1, 2012. The amendment clarified the determination of deferred tax on investment property measured at fair
value. The amendment introduces a rebuttable presumption that deferred tax on investment property measured using the fair value
model in IAS 40 should be determined on the basis that its carrying amount will be recovered through sale. Furthermore, it introduces
the requirement that deferred tax on non-depreciable assets that are measured using the revaluation model in IAS 16 always be measured
on a sale basis of the asset.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IAS 19 “Employee Benefits (amendment)”. Effective for annual periods beginning on or after January 1, 2013. The
IASB has issued numerous amendments to IAS 19. These range from fundamental changes such as removing the corridor mechanism and
the concept of expected returns on plan assets to simple clarifications and re-wording.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IAS 27 “Separate Financial Statements (as revised in 2011)”. Effective for annual periods beginning on or after
January 1, 2013. As a consequence of the new IFRS 10 and IFRS 12, what remains of IAS 27 is limited to accounting for subsidiaries,
jointly controlled entities, and associates in separate financial statements. The Group does not present separate financial statements.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IAS 28 “Investments in Associates and Joint Ventures (as revised in 2011)”. Effective for annual periods beginning
on or after January 1, 2013. As a consequence of the new IFRS 11 and IFRS 12, IAS 28 has been renamed IAS 28 Investments in Associates
and Joint Ventures, and describes the application of the equity method to investments in joint ventures in addition to associates.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRS 7 “Financial Instruments: Disclosures”. Effective for periods beginning on or after July 1, 2011. The amendment
requires additional disclosure about financial assets that have been transferred but not derecognized to enable the user of the
financial statements to understand the relationship with those assets that have not been derecognized and their associated liabilities.
In addition, the amendment requires disclosures about continuing involvement in derecognized assets to enable the user to evaluate
the nature of, and risks associated with, the entity’s continuing involvement in those derecognized assets.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRS 9 “Financial Instruments: Classification and Measurement”. IFRS 9 as issued reflects the first phase of the
IASBs work on the replacement of IAS 39 and applies to classification and measurement of financial assets as defined in IAS 39.
The standard is effective for annual periods beginning on or after January 1, 2015. The adoption of the first phase of IFRS 9 will
have an effect on the classification and measurement of the Group’s financial assets, but will potentially have no impact
on classification and measurements of financial liabilities. In subsequent phases, the IASB will address hedge accounting and impairment
of financial assets. The completion of this project is expected over the course of 2012.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-40









Notes to the consolidated financial
statements (continued)



| | - | IFRS 10 “Consolidated Financial Statements”. Effective for annual periods beginning on or after January 1, 2013.
IFRS 10 replaces the portion of IAS 27 “Consolidated and Separate Financial Statements” that addresses the accounting
for consolidated financial statements. It also includes the issues raised in SIC-12 “Consolidation — Special Purpose
Entities”. IFRS 10 establishes a single control model that applies to all entities including special purpose entities. The
changes introduced by IFRS 10 will require management to exercise significant judgment to determine which entities are controlled,
and therefore, are required to be consolidated by a parent, compared with the requirements that were in IAS 27.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRS 11 “Joint Arrangements”. Effective for annual periods beginning on or after January 1, 2013. IFRS 11 replaces
IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities — Non-monetary Contributions by Venturers. IFRS
11 removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead, JCEs that meet
the definition of a joint venture must be accounted for using the equity method.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRS 12 “Disclosure of Interests in Other Entities”. Effective for annual periods beginning on or after January
1, 2013. IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as
well as all of the disclosures that were previously included in IAS 31 and IAS 28. These disclosures relate to an entity’s
interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | IFRS 13 “Fair Value Measurement”. Effective for annual periods beginning on or after January 1, 2013. IFRS 13 establishes
a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required to use
fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-41







Notes to the consolidated financial
statements (continued)



| | - | Conceptual Framework for Financial Reporting – Objectives and Qualitative Characteristics. The IASB is currently in the
process of updating its Conceptual Framework. The conceptual framework project is being conducted in phases and the current version
was revised in 2010 (effective from September 28, 2010). The Conceptual Framework is not an IFRS statement. However, it is used
when developing an accounting policy in the absence of a standard, and is applicable to all prepares of IFRS general purpose financial
statements.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Group is in process of assessing
the impact, if any, that the application of these standards may have on its consolidated financial statements.



| | 4. | Cash and due from banks
| | -- | -----------------------



This
item is made up as follows:



|                                         |  | 2011     |           |  | 2010     | 
|---------------------------------------- |  | -------- | --------- |  | -------- | 
|                                         |  | US$(000) |           |  | US$(000) | 
|                                         |  |          |           |  |          | 
|Cash and clearing                        |  |          | 926,008   |  |          | 
|Deposits in Peruvian Central Bank – BCRP |  |          | 3,784,514 |  |          | 
|Deposits in banks                        |  |          | 790,187   |  |          | 
|                                         |  |          | 5,500,709 |  |          | 
|                                         |  |          |           |  |          | 
|Accrued interest                         |  |          | 2,153     |  |          | 
|                                         |  |          |           |  |          | 
|Total                                    |  |          | 5,502,862 |  |          | 



As of December 31, 2011 and 2010, cash and due from
banks includes approximately US$4,617.9 and US$3,282.7 million, respectively, mainly from BCP, which represent the legal reserve
that Peruvian banks must maintain for its obligations with the public, and are within the limits established by prevailing Peruvian
legislation at those dates.



The legal reserve funds maintained with BCRP are
not interest-bearing, except for the part of the mandatory reserve in U.S. Dollars and in Nuevos Soles that exceeds the minimum
legal reserve. As of December 31, 2011, the excess in U.S. Dollars amounts approximately to US$2,257.3 million and bear interest
at an annual average interest rate of 0.18 percent (US$1,953.9 million and annual average interest rate of 0.16, respectively,
as of December 31, 2010), while the excess in Nuevos Soles amounts approximately to S/.1,007.2 million, equivalent to US$373.6
million, and bear interest in Nuevos Soles at an annual average interest rate of 2.45 percent (S/.660.6 million equivalent to US$235.2
million and annual average interest rate of 1.2 percent, respectively, as of December 31, 2010).





F-42









Notes to the consolidated financial
statements (continued)



Deposits in local and foreign banks correspond principally
to balances in Nuevos Soles and U.S. Dollars. All deposits are unrestricted and earn interest at market rates. As of December 31,
2011 and 2010, Credicorp does not have significant deposits in any specific financial institution.



As of December 31, 2010, BCP had BCRP fixed term
deposits (DPBCRP, for its Spanish acronym), denominated in Nuevos Soles for an amount equivalent to US$3,649.8 million, which earned
interest at an average rate of 3.06 percent and were included in the consolidated statements of financial position caption “Cash
and due from banks”. During 2011, these instruments were settled and replaced mainly by BCRP certificates of deposit (CDBCRP,
for its Spanish acronym), which are included in the consolidated statements of financial position caption “Investments available
for sale”, see Note 5(e).





F-43









Notes to the consolidated financial
statements (continued)



| | 5. | Investments available-for-sale
| | -- | ------------------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                                                        |  | 2011           |           |  | 2010                        | 
|------------------------------------------------------- |  | -------------- | --------- |  | --------------------------- | 
|                                                        |  |                |           |  | Unrealized
    gross amount | 
|                                                        |  | Amortized cost |           |  | Gains                       | 
|                                                        |  | US$(000)       |           |  | US$(000)                    | 
|                                                        |  |                |           |  |                             | 
|BCRP certificates
    of deposit (e)                    |  |                | 2,061,020 |  |                             | 
|Corporate, leasing
    and subordinated bonds (f)       |  |                | 1,670,805 |  |                             | 
|Government’s
    treasury bonds (g)                     |  |                | 768,304   |  |                             | 
|Assets back securities
    (h)                          |  |                | 245,556   |  |                             | 
|Central Bank of Bolivia
    certificates of deposit (i) |  |                | 110,727   |  |                             | 
|Restricted mutual funds
    (j)                         |  |                | 61,642    |  |                             | 
|Participations in mutual
    funds                      |  |                | 62,333    |  |                             | 
|Bonds of international
    financial entities           |  |                | 69,923    |  |                             | 
|Participation in RAL’s
    funds (k)                    |  |                | 49,263    |  |                             | 
|Negotiable certificates
    of deposit                  |  |                | 39,966    |  |                             | 
|Hedge funds                                             |  |                | 27,133    |  |                             | 
|Collateralized mortgage
    obligations (CMO) (l)       |  |                | 23,265    |  |                             | 
|US
    Government – Agencies and Sponsored Enterprises  |  |                | 17,161    |  |                             | 
|                                                        |  |                | 5,207,098 |  |                             | 
|                                                        |  |                |           |  |                             | 
|Listed securities (m)                                   |  |                | 116,193   |  |                             | 
|Not-listed
    securities                               |  |                | 4,065     |  |                             | 
|                                                        |  |                | 120,258   |  |                             | 
|                                                        |  |                |           |  |                             | 
|                                                        |  |                | 5,327,356 |  |                             | 
|                                                        |  |                |           |  |                             | 
|Accrued
    interest                                    |  |                |           |  |                             | 
|                                                        |  |                |           |  |                             | 
|Total                                                   |  |                |           |  |                             | 







| | (b) | Credicorp’s Management has determined that the unrealized losses as of December 31, 2011
and 2010 are of temporary nature. Management intents and has the ability to hold each investment for a period of time sufficient
to allow for an anticipated recovery in fair value, until the earlier of its anticipated recovery or maturity.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| | (c) | For the year ended December 31, 2011, as a result of the impairment assessment of its investments
available-for-sale, the Group recorded an impairment amounting to US$1.0 million (US$3.3 million as of December 31, 2010), which
is presented in the caption “Impairment loss on available-for-sale investments” of the consolidated statements of income.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The movement
of available-for-sale investments reserves, net of deferred income tax and non-controlling interest is presented in Note 16(c).





F-44









Notes to the consolidated financial
statements (continued)



| | (d) | As of December 31, 2011 and 2010, the maturities and the annual effective interest rates of the
investments available for sale are as follows:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------



|Investments available-for-sale                         |  | Maturity            |  | Annual effective interest rates
|------------------------------------------------------ |  | ------------------- |  | -------------------------------
|                                                       |  | 2011                |  | 2010                           
|                                                       |  |                     |  |                                
|                                                       |  |                     |  |                                
|                                                       |  |                     |  |                                
|                                                       |  |                     |  |                                
|BCRP certificates
    of deposit                       |  | Jan-2012 / Dec-2012 |  | Jan-2011 / Jun-2011            
|Government’s treasury
    bonds                        |  | Jan-2012 / Nov-2050 |  | Jan-2011 / Nov-2050            
|Corporate, leasing and
    subordinated bonds          |  | Jan-2012 / Nov-2067 |  | Jan-2011 / Nov-2067            
|Assets back securities                                 |  | Jan-2012 / May-2033 |  | Feb-2011 / Apr-2028            
|Central Bank of Bolivia
    certificates of deposit    |  | Jan-2012 / Nov-2013 |  | Jan-2011 / Dec-2011            
|Bonds of international
    financial entities          |  | Feb-2012 / Aug-2018 |  | Jan-2011 / Aug-2018            
|Negotiable certificates
    of deposit                 |  | Jan-2012 / Mar-2029 |  | Jan-2011 / Mar-2029            
|Collateralized mortgage
    obligations (CMO)          |  | Nov-2016 / Mar-2067 |  | Jan-2011 / Jan-2047            
|US Government –
    Agencies and sponsored enterprises |  | Jul-2012 / Apr-2057 |  | Jul-2011 / Aug-2038            



| | (e) | BCRP certificates of deposit are issued at discount, acquired in public auctions and negotiated in the Peruvian secondary market.
As of December 31, 2011, the balance of BCRP certificates of deposit comprised US$2,059.8 million of certificates settled in Nuevos
Soles (US$48.9 million and US$315.0 million of certificates settled in U.S. Dollars and in Nuevos Soles, respectively, as of December
31, 2010).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (f) | As of December 31, 2011 and 2010, comprise mainly corporate bonds for US$1,688.0 million and US$1,561.8 million, respectively.
The unrealized losses on these investments as of December 31, 2011, corresponded to 65 items of which the highest individual unrealized
loss amounts to approximately US$ 1.8 million (57 items and US$1.1 million, respectively as of December 31, 2010).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (g) | As of December 31, 2011, includes mainly debt instruments issued by the Peruvian Government in Nuevos Soles for an amount of
US$423.8 million and in U.S. Dollars for an amount of US$210.8 million, the Colombian Government in U.S. Dollars for US$143.9 million,
the U.S. Government in U.S Dollars for US$48.7 million, the Chilean Government in U.S. Dollars for US$3.6 million, and the Brazilian
Government in U.S. Dollars for US$4.5 million (US$227.0 million and US$252.0 million, US$110.6 million, US$9.3 million and US$3.0
million issued by the Peruvian, Colombian, Chilean and Brazilian Goverments, respectively, as of December 31, 2010).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In April 2010, BCP participated in an exchange program
offered by the Peruvian Government by which the Bank exchanged 7.500 percent euro denominated Global Bonds due 2014 for cash and
new bonds 8.375 percent US$-Denominated Global Bonds due 2033. BCP received €90.4 million in cash and US$323.1 million in
2033 Bonds. BCP recorded the unrealized gain amounting to US$31.8 million as a realized gain in the caption “Net gain on
sale of securities” of the consolidated statement of income.



Additionally, at the exchange date,
BCP terminated the related cross currency swaps (“CCS”) amounting to US$318.3 million that were part of its fair value
hedge strategy, generating a loss amounting to approximately US$15.7 million, which is presented in the caption “Loss from
hedging derivatives instruments” of the consolidated income statement, see note 20.



| | (h) | Assets back securities are secured by a specified pool of underlying assets and are mainly traded in the Peruvian over-the-counter
market. Pools of underlying assets are made up of receivables with predictable future payments.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As of December 31, 2011 and 2010,
the balance includes US$122.2 million and US$17.8 million, respectively of financial instruments issued by Hunt Oil Company (the
originator). The underlying assets are future receivables from the sale of hydrocarbons extracted in Peru. The bonds have semi
annual payments up to 2025.



| | (i) | As of December 31, 2011 and 2010, certificates of deposits issued by the Central Bank of Bolivia
are mainly denominated in Bolivianos.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------





F-45









Notes to the consolidated financial
statements (continued)



| | (j) | Restricted mutual funds comprise participation quotas in the private pension funds managed by the Group as required by Peruvian
regulations. They have disposal restrictions and their profitability is the same as the one obtained by the private pension funds
managed.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (k) | The participation quotas in the funds "Requirement of Cash Assets" (RAL for its spanish acronym) are denominated
in Bolivianos and U.S. Dollars. These funds amount approximately to US$27.4 million and US$21.8 million, respectively, (US$25.7
million and US$54.5 million, respectively, as of December 31, 2010). RAL’s funds comprise investments made by the Group in
the Central Bank of Bolivia as collateral for deposits received from the public. Said fund has restrictions for its use and is
required for all banks established in Bolivia.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (l) | Collaterized mortgage obligations correspond to senior tranches.
| | --- | ----------------------------------------------------------------



| | (m) | As of December 31, 2011, the unrealized gains on listed securities arises mainly from shares in Banco de Crédito e Inversiones
de Chile (BCI Chile), Inversiones Centenario S.A.A., Alicorp S.A.A. and Edelnor S.A.A., which amounted to US$158.3, US$53.3, US$65.9
and US$41.9 million, respectively (US$212.5, US$57.5, US$67.7 and US$39.6 million, respectively, as of December 31, 2010).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (n) | As of December 31, 2011 and 2010, the Group maintains interest rate swaps (IRS), which were designated as fair value hedges
of fix bonds denominated in U.S. Dollars issued by the Peruvian Government, corporate and international financial entities, for
a notional amount of US$54.0 million (US$54.6 million as of December 31, 2010), see Note 11(b); through the IRS these bonds were
economically converted to variable rate.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (o) | As of December 31, 2011, the Group entered into Repo transactions over corporate, international financial entities and government
bonds for an estimated fair value of
US$223.2 million (US$279.0 million as of December 31, 2010); the related liability is presented in the caption “Other liabilities”
of the consolidated statements of financial position,
see Note 11(a) and (e).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (p) | Amortized cost and estimated fair value of investments available-for-sale classified by contractual maturity are as follows:
| | --- | ----------------------------------------------------------------------------------------------------------------------------



|                        |  | 2011            |           |  | 2010       | 
|----------------------- |  | --------------- | --------- |  | ---------- | 
|                        |  | Amortized  cost |           |  | Fair value | 
|                        |  | US$(000)        |           |  | US$(000)   | 
|Up to 3 months          |  |                 | 964,274   |  |            | 
|From 3 months to 1 year |  |                 | 1,485,774 |  |            | 
|From 1 to 3 years       |  |                 | 551,145   |  |            | 
|From 3 to 5 years       |  |                 | 427,541   |  |            | 
|Over 5 years            |  |                 | 1,577,993 |  |            | 
|Without maturity        |  |                 | 320,629   |  |            | 
|                        |  |                 |           |  |            | 
|Total                   |  |                 | 5,327,356 |  |            | 





F-46









Notes to the consolidated financial
statements (continued)



| | 6. | Loans, net
| | -- | ----------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                                          |  | 2011     |            |   | 2010     | 
|----------------------------------------- |  | -------- | ---------- | - | -------- | 
|                                          |  | US$(000) |            |   | US$(000) | 
|Direct loans -                            |  |          |            |   |          | 
|Loans                                     |  |          | 11,986,080 |   |          | 
|Leasing receivables                       |  |          | 2,786,129  |   |          | 
|Credit card receivables                   |  |          | 1,807,717  |   |          | 
|Discounted notes                          |  |          | 552,233    |   |          | 
|Factoring receivables                     |  |          | 254,516    |   |          | 
|Advances and overdrafts                   |  |          | 25,130     |   |          | 
|Refinanced and restructured loans         |  |          | 96,031     |   |          | 
|Past due and under legal collection loans |  |          | 259,050    |   |          | 
|                                          |  |          | 17,766,886 |   |          | 
|Add (less) -                              |  |          |            |   |          | 
|Accrued interest                          |  |          | 121,563    |   |          | 
|Unearned interest                         |  |          | (446,508   | ) |          | 
|Allowance for loan losses (d)(*)          |  |          | (519,708   | ) |          | 
|                                          |  |          |            |   |          | 
|Total direct loans, net                   |  |          | 16,922,233 |   |          | 
|                                          |  |          |            |   |          | 
|Indirect loans, Note 19(a)                |  |          | 3,728,000  |   |          | 



| | (b) | Loans by class are as follows:
| | --- | ------------------------------



|                           |  | 2011     |            |  | 2010     | 
|-------------------------- |  | -------- | ---------- |  | -------- | 
|                           |  | US$(000) |            |  | US$(000) | 
|                           |  |          |            |  |          | 
|Commercial loans           |  |          | 12,806,870 |  |          | 
|Residential mortgage loans |  |          | 2,725,145  |  |          | 
|Consumer loans             |  |          | 2,234,871  |  |          | 
|                           |  |          |            |  |          | 
|Total                      |  |          | 17,766,886 |  |          | 



| | (c) | Interest rates on loans are set considering the rates prevailing in the markets where the Group’s subsidiaries operate.
| | --- | -----------------------------------------------------------------------------------------------------------------------





F-47









Notes to the consolidated financial
statements (continued)



| | (d) | The movement in the allowance for loan losses (direct and indirect loans) is shown below:
| | --- | -----------------------------------------------------------------------------------------



|                                |  | 2011             |        
|------------------------------- |  | ---------------- | -------
|                                |  | Commercial loans |        
|                                |  | US$(000)         |        
|                                |  |                  |        
|Beginning balances              |  |                  | 289,564
|Provision                       |  |                  | 105,544
|Recoveries of written-off loans |  |                  | 23,329 
|Loan portfolio written-off      |  |                  | (64,905
|Translation result              |  |                  | 3,890  
|                                |  |                  |        
|Ending balances (*)             |  |                  | 357,422



|                                |  | 2010             |        
|------------------------------- |  | ---------------- | -------
|                                |  | Commercial loans |        
|                                |  | US$(000)         |        
|                                |  |                  |        
|Beginning balances              |  |                  | 243,796
|Provision                       |  |                  | 87,125 
|Recoveries of written-off loans |  |                  | 19,867 
|Loan portfolio written-off      |  |                  | (63,128
|Translation result              |  |                  | 1,904  
|                                |  |                  |        
|Ending balances (*)             |  |                  | 289,564



|                                |  | 2009             |        
|------------------------------- |  | ---------------- | -------
|                                |  | Commercial loans |        
|                                |  | US$(000)         |        
|                                |  |                  |        
|Beginning balances              |  |                  | 161,170
|Provision                       |  |                  | 79,551 
|Recoveries of written-off loans |  |                  | 12,984 
|Acquisition of Edyficar, Note 2 |  |                  | 19,443 
|Loan portfolio written-off      |  |                  | (32,364
|Translation result              |  |                  | 3,012  
|                                |  |                  |        
|Ending balances (*)             |  |                  | 243,796



| | (*) | The movement in the allowance for loan losses includes the allowance for direct and indirect loans for approximately US$519.7
million and US$38.5 million, respectively, as of December 31, 2011 (approximately US$415.7 million and US$32.9 million; and US$354.4
million and US$21.7 million, as of December 31, 2010 and 2009, respectively). The allowance for indirect loan losses is included
in the caption “Other liabilities” of the consolidated statements of financial position, Note 11(a).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-48









Notes to the consolidated financial
statements (continued)



In Management’s opinion,
the allowance for loan losses recorded as of December 31, 2011, 2010 and 2009 has been established in accordance with IAS 39 and
is sufficient to cover probable losses on the loan portfolio.



| | (e) | Part of the loan portfolio is collateralized with guarantees received from clients, which mainly consist of mortgages, trust
assignments, financial instruments and industrial and mercantile pledges.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (f) | Interest on past due for more than 90 days and under legal collection loans are recognized when collected. Interest income
that would have been recorded for these loans in accordance with their original contract terms and have not been recognize as income
amounts to approximately US$49.8, US$38.5 and US$27.9 as of December 31, 2011, 2010 and 2009, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (g) | As of December 31, 2011 and 2010, the direct gross loan portfolio classified by maturity, based on the remaining period to
repayment date is as follows:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------



|                       |  | 2011     |            |  | 2010     | 
|---------------------- |  | -------- | ---------- |  | -------- | 
|                       |  | US$(000) |            |  | US$(000) | 
|                       |  |          |            |  |          | 
|Outstanding loans -    |  |          |            |  |          | 
|Up to 1 year           |  |          | 7,855,825  |  |          | 
|From 1 to 3 years      |  |          | 3,753,857  |  |          | 
|From 3 to 5 years      |  |          | 2,219,746  |  |          | 
|Over 5 years           |  |          | 3,678,408  |  |          | 
|                       |  |          |            |  |          | 
|Past due loans -       |  |          |            |  |          | 
|Up to 4 months         |  |          | 91,653     |  |          | 
|Over 4 months          |  |          | 95,769     |  |          | 
|Under legal collection |  |          | 71,628     |  |          | 
|                       |  |          |            |  |          | 
|Total                  |  |          | 17,766,886 |  |          | 



| | 7. | Financial assets designated at fair value through profit or loss
| | -- | ----------------------------------------------------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                                 |  | 2011     |        |  | 2010     | 
|-------------------------------- |  | -------- | ------ |  | -------- | 
|                                 |  | US$(000) |        |  | US$(000) | 
|                                 |  |          |        |  |          | 
|Unit Linked financial assets (b) |  |          | 49,816 |  |          | 
|Indexed certificates (c)         |  |          | 40,287 |  |          | 
|                                 |  |          |        |  |          | 
|                                 |  |          | 90,103 |  |          | 



| | (b) | The Group issues unit linked life insurance contracts whereby the policyholder bears the investment risk on the assets held
in the unit linked funds as the policy benefits are directly linked to the value of the assets in the fund. The Group’s exposure
to market risk is limited to the extent that income arising from asset management charges is based on the value of assets in the
fund. For the year 2011, the loss resulting from the difference between cost and estimated market value for these financial assets
amounted to approximately US$6.1 million (gain of US$6.4 million for the year 2010) and is presented in the caption “Net
loss on financial assets designated at fair value through profit or loss” of the consolidated statements of income (“Net
gain on financial assets designated at fair value through profit or loss for the year 2010”). The offsetting of this effect
is included in gross premiums which are part of the caption “Net premiums earned” of the consolidated statements of
income, see Note 22.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-49









Notes to the consolidated financial
statements (continued)



| | (c) | In connection with the liabilities that result from Credicorp’s stock appreciation rights (SARs), (Note 18(a)), BCP signed
several contracts with Citigroup Global Markets Holdings Inc., Citigroup Capital Limited, Citigroup Capital Market Inc. (collectively
hereinafter “Citigroup”) and Credit Agricole Corporate and Investment Bank (hereinafter “Calyon”). These
contracts consist of the purchase of certificates indexed to the performance of Credicorp Ltd. (BAP) shares, in the form of “warrants”
issued by Citigroup and Calyon, with the same number of Credicorp Ltd. shares. These certificates are cash settled and their final
settlement price is equivalent to the daily volume-weighted average of the per share price for BAP shares on each business day,
on which Citigroup or any of its affiliates or Calyon effects any transactions with respect to BAP shares in order to unwind its
position established and maintained to hedge its price and market risk with respect to the issued certificates.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The certificates have a maturity
of 5 years but can be settled anytime before their maturity, partially or totally. As of December 31, 2011 and 2010, the Group
had 355,914 and 1,152,414 certificates at a total cost of US$22.4 million and US$70.9 million, respectively (US$62.9 and US$61.5
per certificate on average, respectively). At those dates, the estimated market value amounted to US$40.3 and US$139.6 million,
respectively (US$113.2 and US$121.1 per certificate on average, as of December 31, 2011 and 2010, respectively). For the year 2011,
the net loss generated by the indexed certificates is comprised by the loss arising from their valuation, approximately US$49.1
million (gain of US$43.8 million for the year 2010), net of the gain resulting from their settlement , approximately to US$30.6
million (gain of US$14.3 million for the year 2010) and has been recorded in the caption “Net loss on financial assets designated
at fair value through profit or loss” of the consolidated statements of income (“Net gain on financial assets designated
at fair value through profit or loss” for the year 2010).



| | 8. | Receivable and payable accounts from insurance contracts
| | -- | --------------------------------------------------------



| | (a) | As of December 31, 2011 and 2010, the caption “Premiums and other policies receivable” of the consolidated statements
of financial position includes balances which primarily due in a current period, have no collaterals and present no material past
due balances.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-50









Notes to the consolidated financial
statements (continued)



| | (b) | The movements of the captions accounts receivable and payable to reinsurers and coinsurers are as follows:
| | --- | ----------------------------------------------------------------------------------------------------------



|Accounts receivable                                       |  | 2011     |         |   | 2010     | 
|--------------------------------------------------------- |  | -------- | ------- | - | -------- | 
|                                                          |  | US$(000) |         |   | US$(000) | 
|                                                          |  |          |         |   |          | 
|Beginning balances                                        |  |          | 160,249 |   |          | 
|Reported claims of premiums ceded, Note 23                |  |          | 28,627  |   |          | 
|Premiums ceded unearned during the year, Note 22(**)(ii)  |  |          | 9,091   |   |          | 
|Premiums assumed                                          |  |          | 20,039  |   |          | 
|Settled claims of premiums ceded by facultative contracts |  |          | 26,345  |   |          | 
|Collections and other                                     |  |          | (93,271 | ) |          | 
|                                                          |  |          |         |   |          | 
|Ending balances                                           |  |          | 151,080 |   |          | 



Accounts receivable as of December
31, 2011 and 2010, include US$58.0 and US$49.0 million, respectively, which correspond to the unearned portion of the ceded premiums
to the reinsurers.



|Accounts payable                                                       |  | 2011     |         |   | 2010     | 
|---------------------------------------------------------------------- |  | -------- | ------- | - | -------- | 
|                                                                       |  | US$(000) |         |   | US$(000) | 
|                                                                       |  |          |         |   |          | 
|Beginning balances                                                     |  |          | 60,775  |   |          | 
|Premiums ceded to reinsurers by facultative contracts, Note 22(**)(ii) |  |          | 98,639  |   |          | 
|Coinsurance granted                                                    |  |          | 11,067  |   |          | 
|Payments and other                                                     |  |          | (95,115 | ) |          | 
|                                                                       |  |          |         |   |          | 
|Ending balances                                                        |  |          | 75,366  |   |          | 



Accounts payable to reinsurers
are primarily related to the proportional facultative contracts (on an individual basis) for ceded premiums, automatic non-proportional
contracts (excess of loss) and reinstallation premiums. For facultative contracts the Group transfers to the reinsurers a percentage
or an amount of an insurance contract or individual risk, based on the premium and the covered period. The net movement of the
accounts payable of automatic contracts (mainly excess of loss) as well as reinstallation premiums of the years 2011 and 2010 are
included in the concept “Premiums ceded to reinsurers, net” for US$40.3 million and U$33.3 million, respectively, see
Note 22 (**)(i).





F-51









Notes to the consolidated financial
statements (continued)



| | 9. | Property, furniture and equipment, net
| | -- | --------------------------------------



| | (a) | The movement of property, furniture and equipment and accumulated depreciation, for the years ended
December 31, 2011 and 2010, is as follows:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------



|                                                |  | Land     |        |  | Buildings  and other construction |  |         | Installations |  |  | Furniture and
                                                                                                                                                                                                                                 fixtures |   |  | Computer  hardware |         |   | Vehicles and
                                                                                                                                                                                                                                equipment |  |          | Work in
                                                                                                                                                                                                                            progress |  |  | 2011     |   |  | 2010     |        
|----------------------------------------------- |  | -------- | ------ |  | --------------------------------- |  | ------- | ------------- |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - |  | ------------------ | ------- | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -------- | - |  | -------- | -------
|                                                |  | US$(000) |        |  | US$(000)                          |  |         | US$(000)      |  |  | US$(000)                                                                                                                                                                                                                                                |   |  | US$(000)           |         |   | US$(000)                                                                                                                                                                                                                                               |  |          | US$(000)                                                                                                                                                                                                                                     |  |  | US$(000) |   |  | US$(000) |        
|                                                |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Cost -                                          |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Balance as
    of January 1                     |  |          | 42,656 |  |                                   |  | 294,855 |               |  |  | 128,050                                                                                                                                                                                                                                                 |   |  |                    | 97,586  |   |                                                                                                                                                                                                                                                        |  | 245,218  |                                                                                                                                                                                                                                              |  |  | 39,252   |   |  |          | 55,197 
|Additions                                       |  |          | 8,310  |  |                                   |  | 976     |               |  |  | 2,899                                                                                                                                                                                                                                                   |   |  |                    | 12,528  |   |                                                                                                                                                                                                                                                        |  | 26,674   |                                                                                                                                                                                                                                              |  |  | 2,423    |   |  |          | 47,009 
|Acquisition of private
    hospitals, Note 2(a) |  |          | 27,037 |  |                                   |  | 15,019  |               |  |  | 2,339                                                                                                                                                                                                                                                   |   |  |                    | 1,093   |   |                                                                                                                                                                                                                                                        |  | 320      |                                                                                                                                                                                                                                              |  |  | 5,006    |   |  |          | -      
|Transfers                                       |  |          | 7      |  |                                   |  | 62,517  |               |  |  | 7,639                                                                                                                                                                                                                                                   |   |  |                    | 1,676   |   |                                                                                                                                                                                                                                                        |  | 7,836    |                                                                                                                                                                                                                                              |  |  | 3,087    |   |  |          | (82,762
|Sales,
    disposals and other                  |  |          | -      |  |                                   |  | -       |               |  |  | (575                                                                                                                                                                                                                                                    | ) |  |                    | (1,487  | ) |                                                                                                                                                                                                                                                        |  | (108,539 | )                                                                                                                                                                                                                                            |  |  | (281     | ) |  |          | -      
|                                                |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Balance
    as of December 31                   |  |          | 78,010 |  |                                   |  | 373,367 |               |  |  | 140,352                                                                                                                                                                                                                                                 |   |  |                    | 111,396 |   |                                                                                                                                                                                                                                                        |  | 171,509  |                                                                                                                                                                                                                                              |  |  | 49,487   |   |  |          | 19,444 
|                                                |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Accumulated
    depreciation -                  |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Balance as of January
    1                     |  |          | -      |  |                                   |  | 160,782 |               |  |  | 83,834                                                                                                                                                                                                                                                  |   |  |                    | 67,147  |   |                                                                                                                                                                                                                                                        |  | 204,357  |                                                                                                                                                                                                                                              |  |  | 13,781   |   |  |          | -      
|Depreciation for the year                       |  |          | –      |  |                                   |  | 8,382   |               |  |  | 8,220                                                                                                                                                                                                                                                   |   |  |                    | 5,039   |   |                                                                                                                                                                                                                                                        |  | 22,198   |                                                                                                                                                                                                                                              |  |  | 4,189    |   |  |          | -      
|Acquisition of private
    hospitals, Note 2(a) |  |          | -      |  |                                   |  | 1,928   |               |  |  | 61                                                                                                                                                                                                                                                      |   |  |                    | 164     |   |                                                                                                                                                                                                                                                        |  | 121      |                                                                                                                                                                                                                                              |  |  | 1,670    |   |  |          | -      
|Sales,
    disposals and other                  |  |          | -      |  |                                   |  | -       |               |  |  | (568                                                                                                                                                                                                                                                    | ) |  |                    | (1,477  | ) |                                                                                                                                                                                                                                                        |  | (108,503 | )                                                                                                                                                                                                                                            |  |  | (193     | ) |  |          | -      
|                                                |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Balance
    as of December 31                   |  |          | -      |  |                                   |  | 171,092 |               |  |  | 91,547                                                                                                                                                                                                                                                  |   |  |                    | 70,873  |   |                                                                                                                                                                                                                                                        |  | 118,173  |                                                                                                                                                                                                                                              |  |  | 19,447   |   |  |          | -      
|                                                |  |          |        |  |                                   |  |         |               |  |  |                                                                                                                                                                                                                                                         |   |  |                    |         |   |                                                                                                                                                                                                                                                        |  |          |                                                                                                                                                                                                                                              |  |  |          |   |  |          |        
|Net
    book value                              |  |          | 78,010 |  |                                   |  | 202,275 |               |  |  | 48,805                                                                                                                                                                                                                                                  |   |  |                    | 40,523  |   |                                                                                                                                                                                                                                                        |  | 53,336   |                                                                                                                                                                                                                                              |  |  | 30,040   |   |  |          | 19,444 



| | (b) | Banks, financial institutions and insurance entities operating in Peru are not allowed to pledge their fixed assets.
| | --- | --------------------------------------------------------------------------------------------------------------------



| | (c) | As of December 31, 2011, Credicorp and its Subsidiaries have property available for sale for approximately US$23.0 million,
net of its accumulated depreciation amounting to approximately US$10.4 million (US$23.5 and US$9.8 million, respectively, as of
December 31, 2010).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Management periodically reviews the residual value, useful life and method of depreciation of the Group’s property, furniture
and equipment to ensure that they are consistent with their actual economic benefits and life expectations. In Management’s
opinion, as of December 31, 2011 and 2010 there is no evidence of impairment of the Group’s property, furniture and equipment.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-52







Notes to the consolidated financial
statements (continued)



| | 10. | Intangibles assets and goodwill, net
| | --- | ------------------------------------



| | (a) | Intangibles –
| | --- | -------------



The movement
of finite useful lives intangible assets for the years ended December 31, 2011 and 2010 is as follows:



|Description                                 |  | Client relationships (i) |        |  | Rights of use |  |        | Brand name (ii) |  |  | Licenses |  |  | Software and developments |        |  | Other    |  |         | 2011     |  |  | 2010     |  
|------------------------------------------- |  | ------------------------ | ------ |  | ------------- |  | ------ | --------------- |  |  | -------- |  |  | ------------------------- | ------ |  | -------- |  | ------- | -------- |  |  | -------- | -
|                                            |  | US$(000)                 |        |  | US$(000)      |  |        | US$(000)        |  |  | US$(000) |  |  | US$(000)                  |        |  | US$(000) |  |         | US$(000) |  |  | US$(000) |  
|                                            |  |                          |        |  |               |  |        |                 |  |  |          |  |  |                           |        |  |          |  |         |          |  |  |          |  
|Cost -                                      |  |                          |        |  |               |  |        |                 |  |  |          |  |  |                           |        |  |          |  |         |          |  |  |          |  
|Balance as of January 1                     |  |                          | 94,952 |  |               |  | 20,000 |                 |  |  | 13,159   |  |  |                           | -      |  |          |  | 202,774 |          |  |  | 32,330   |  
|Additions                                   |  |                          | -      |  |               |  | -      |                 |  |  | -        |  |  |                           | -      |  |          |  | 19,829  |          |  |  | 35,482   |  
|Acquisition of private hospitals, Note 2(a) |  |                          | 3,116  |  |               |  | -      |                 |  |  | 10,587   |  |  |                           | 12,271 |  |          |  | 173     |          |  |  | -        |  
|Transfers                                   |  |                          | -      |  |               |  | -      |                 |  |  | -        |  |  |                           | -      |  |          |  | 23,574  |          |  |  | (23,574  | )
|Disposals and other                         |  |                          | -      |  |               |  | -      |                 |  |  | -        |  |  |                           | -      |  |          |  | (1,235  | )        |  |  | (375     | )
|Balance as of December 31                   |  |                          | 98,068 |  |               |  | 20,000 |                 |  |  | 23,746   |  |  |                           | 12,271 |  |          |  | 245,115 |          |  |  | 43,863   |  
|                                            |  |                          |        |  |               |  |        |                 |  |  |          |  |  |                           |        |  |          |  |         |          |  |  |          |  
|Accumulated amortization -                  |  |                          |        |  |               |  |        |                 |  |  |          |  |  |                           |        |  |          |  |         |          |  |  |          |  
|Balance as of January 1                     |  |                          | 19,095 |  |               |  | -      |                 |  |  | 815      |  |  |                           | -      |  |          |  | 102,039 |          |  |  | 10,075   |  
|Amortization of the year                    |  |                          | 5,144  |  |               |  | 1,333  |                 |  |  | 791      |  |  |                           | -      |  |          |  | 37,715  |          |  |  | 871      |  
|Disposals and other                         |  |                          | -      |  |               |  | -      |                 |  |  | -        |  |  |                           | -      |  |          |  | (1,202  | )        |  |  | (61      | )
|Balance as of December 31                   |  |                          | 24,239 |  |               |  | 1,333  |                 |  |  | 1,606    |  |  |                           | -      |  |          |  | 138,552 |          |  |  | 10,885   |  
|                                            |  |                          |        |  |               |  |        |                 |  |  |          |  |  |                           |        |  |          |  |         |          |  |  |          |  
|Net book value                              |  |                          | 73,829 |  |               |  | 18,667 |                 |  |  | 22,140   |  |  |                           | 12,271 |  |          |  | 106,563 |          |  |  | 32,978   |  



During 2011, additions are related
to the implementation and development of sundry IT projects, mainly “AIO” related to increase of the infrastructure,
mainframe and licenses to support the increase in operations (during 2010, additions were related to IT projects "SAP"
and "Sio Teller”).





F-53









Notes to the consolidated financial
statements (continued)



| | (i) | Client relationships -
| | --- | ----------------------



This item is made up as follows:



|                           |  | 2011     |        |  | 2010     | 
|-------------------------- |  | -------- | ------ |  | -------- | 
|                           |  | US$(000) |        |  | US$(000) | 
|Client relationships -     |  |          |        |  |          | 
|Prima AFP – AFP Unión Vida |  |          | 65,686 |  |          | 
|Edyficar                   |  |          | 5,099  |  |          | 
|Private hospitals          |  |          | 3,044  |  |          | 
|                           |  |          |        |  |          | 
|Book value, net            |  |          | 73,829 |  |          | 



| | (ii) | Brand name -
| | ---- | ------------



This item is made up as follows:



|                  |  | 2011     |        |  | 2010     | 
|----------------- |  | -------- | ------ |  | -------- | 
|                  |  | US$(000) |        |  | US$(000) | 
|Brand name -      |  |          |        |  |          | 
|Edyficar          |  |          | 11,688 |  |          | 
|Private hospitals |  |          | 10,452 |  |          | 
|                  |  |          |        |  |          | 
|Book value, net   |  |          | 22,140 |  |          | 



Management has assessed at each
reporting date that there is no indication that client relationships, rights of use, brand name and software and developments may
be impaired.



| | (b) | Goodwill -
| | --- | ----------



This item
is made up as follows:



|                                                             |  | 2011     |         |  | 2010     | 
|------------------------------------------------------------ |  | -------- | ------- |  | -------- | 
|                                                             |  | US$(000) |         |  | US$(000) | 
|Goodwill -                                                   |  |          |         |  |          | 
|Edyficar, Note 2(c)                                          |  |          | 50,696  |  |          | 
|Private hospitals, Note 2(a)                                 |  |          | 45,540  |  |          | 
|Prima AFP                                                    |  |          | 44,594  |  |          | 
|Banco de Crédito del Perú                                    |  |          | 18,733  |  |          | 
|El Pacífico Peruano – Suiza Compañía de Seguros y Reaseguros |  |          | 13,007  |  |          | 
|Atlantic Security Holding Corporation                        |  |          | 10,660  |  |          | 
|Corporación Novasalud Perú S.A. EPS                          |  |          | 3,744   |  |          | 
|                                                             |  |          |         |  |          | 
|Book value, net                                              |  |          | 186,974 |  |          | 



Management annually assesses goodwill to identify any impairment;
assumptions used are consistent with previous years. As of December 31, 2011 and 2010, Management concluded that there is no impairment
in the recorded goodwill.





F-54









Notes to the consolidated financial statements (continued)



| | 11. | Other assets and other liabilities
| | --- | ----------------------------------



| | (a) | These items are made up as follows:
| | --- | -----------------------------------



|                                                        |  | 2011     |           |  | 2010     | 
|------------------------------------------------------- |  | -------- | --------- |  | -------- | 
|                                                        |  | US$(000) |           |  | US$(000) | 
|                                                        |  |          |           |  |          | 
|Other assets                                            |  |          |           |  |          | 
|Financial instruments                                   |  |          |           |  |          | 
|Value added tax credit                                  |  |          | 231,012   |  |          | 
|Accounts receivable                                     |  |          | 129,645   |  |          | 
|Cash collateral on repurchase agreements and others (e) |  |          | 90,065    |  |          | 
|Derivatives receivable (b)                              |  |          | 82,519    |  |          | 
|Income tax prepayments, net                             |  |          | 54,435    |  |          | 
|Operations in process (c)                               |  |          | 44,952    |  |          | 
|                                                        |  |          | 632,628   |  |          | 
|Non-financial instruments                               |  |          |           |  |          | 
|Deferred income tax asset, Note 17(c)                   |  |          | 114,470   |  |          | 
|Prepaid expenses                                        |  |          | 72,393    |  |          | 
|Deferred fees                                           |  |          | 47,629    |  |          | 
|Investments in associates                               |  |          | 13,428    |  |          | 
|Other                                                   |  |          | 21,996    |  |          | 
|                                                        |  |          | 269,916   |  |          | 
|                                                        |  |          |           |  |          | 
|Total                                                   |  |          | 902,544   |  |          | 
|                                                        |  |          |           |  |          | 
|Other liabilities                                       |  |          |           |  |          | 
|Financial instruments:                                  |  |          |           |  |          | 
|Repurchase agreements, Note 5(o) and (e)                |  |          | 250,000   |  |          | 
|Accounts payable                                        |  |          | 223,743   |  |          | 
|Payroll, taxes, salaries and other personnel expenses   |  |          | 155,184   |  |          | 
|Derivatives payable (b)                                 |  |          | 145,261   |  |          | 
|Allowance for indirect loan losses, Note 6(d)           |  |          | 38,478    |  |          | 
|Contributions                                           |  |          | 23,694    |  |          | 
|Operations in process (c)                               |  |          | 31,020    |  |          | 
|                                                        |  |          |           |  |          | 
|                                                        |  |          | 867,380   |  |          | 
|Non-financial instruments                               |  |          |           |  |          | 
|Deferred income tax liability, Note 17(c)               |  |          | 127,960   |  |          | 
|Provision for sundry risks (d)                          |  |          | 29,009    |  |          | 
|Other                                                   |  |          | 1,056     |  |          | 
|                                                        |  |          |           |  |          | 
|                                                        |  |          | 158,025   |  |          | 
|                                                        |  |          |           |  |          | 
|Total                                                   |  |          | 1,025,405 |  |          | 





F-55









Notes to the consolidated financial
statements (continued)



| | (b) | The risk in derivative contracts arises from the possibility of the counterparty failing to comply with the terms and conditions
agreed and that the reference rates at which the transactions took place changes.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The table below presents as of December 31, 2011
and 2010, the fair value of derivative financial instruments, recorded as an asset or a liability, together with their notional
amounts and maturities. The notional amount, recorded gross, is the amount of a derivative’s underlying asset and is the
basis upon which changes in the value of derivatives are measured, see Note 19(a).



|                                                           |  |             |  | 2011     |        | 2010 |             | 2011 and 2010
|---------------------------------------------------------- |  | ----------- |  | -------- | ------ | ---- | ----------- | -------------
|                                                           |  | Note        |  | Assets   |        |      | Liabilities |              
|                                                           |  |             |  | US$(000) |        |      | US$(000)    |              
|                                                           |  |             |  |          |        |      |             |              
|Derivatives held for trading (i) -                         |  |             |  |          |        |      |             |              
|Forward exchange contracts                                 |  |             |  |          | 21,135 |      |             |              
|Interest rate swaps                                        |  |             |  |          | 31,220 |      |             |              
|Currency swaps                                             |  |             |  |          | 18,093 |      |             |              
|Options                                                    |  |             |  |          | 206    |      |             |              
|                                                           |  |             |  |          |        |      |             |              
|Derivatives held as hedges -                               |  |             |  |          |        |      |             |              
|Cash flow hedges (ii):                                     |  |             |  |          |        |      |             |              
|Interest rate swaps (IRS)                                  |  | 13(a)(i)(*) |  |          | 534    |      |             |              
|Interest rate swaps (IRS)                                  |  | 13(a)(i)(*) |  |          | -      |      |             |              
|Interest rate swaps (IRS)                                  |  | 15(a)(vi)   |  |          | -      |      |             |              
|Cross currency swaps (CCS)                                 |  | 15(a)(ii)   |  |          | 2,411  |      |             |              
|Cross currency swaps (CCS)                                 |  | 15(a)(vii)  |  |          | -      |      |             |              
|Cross currency swaps and interest rate swaps (CCS and IRS) |  | 15(a)(i)    |  |          | 8,920  |      |             |              
|                                                           |  |             |  |          |        |      |             |              
|Fair value hedges:                                         |  |             |  |          |        |      |             |              
|Interest rate swaps (IRS)                                  |  | 5(n)        |  |          | -      |      |             |              
|                                                           |  |             |  |          |        |      |             |              
|                                                           |  |             |  |          | 82,519 |      |             |              



| | (i) | Derivatives held for trading are principally negotiated to satisfy client’s needs. The Group may also take positions
with the expectation of profiting from favorable movements in prices, rates or indexes. Also, this caption includes any derivatives
which does not comply IAS 39 hedging accounting requirements.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | The Group is exposed to variability in future interest cash flows on liabilities in foreign currency and/or which bear interest
variable rates. The Group uses derivatives financial instruments as cash flow hedges to cover these risks.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-56









Notes to the consolidated financial statements(continued)



A schedule indicating, as of December 31, 2011,
the periods when the cash flow hedges are expected to occur and affect the consolidated statement of income, net of the deferred
income tax is presented below:





|                                     |  | Up to 1 year |          |   | From 1 to 3 years |  |          | From 3 to 5 years |  |  | Over 5 years |  
|------------------------------------ |  | ------------ | -------- | - | ----------------- |  | -------- | ----------------- |  |  | ------------ | -
|                                     |  | US$(000)     |          |   | US$(000)          |  |          | US$(000)          |  |  | US$(000)     |  
|                                     |  |              |          |   |                   |  |          |                   |  |  |              |  
|Cash outflows (liabilities)          |  |              | (266,191 | ) |                   |  | (737,441 | )                 |  |  | (80,653      | )
|                                     |  |              |          |   |                   |  |          |                   |  |  |              |  
|Consolidated statement of
    income |  |              | (19,274  | ) |                   |  | (35,763  | )                 |  |  | (10,042      | )







As of December 31, 2011, the accumulated balance
of unrealized loss on cash flow hedges recorded as other comprehensive income in the caption “Cash flow hedges reserve”,
results from the current hedges (unrealized loss for approximately US$65.6 million) and the terminated hedge in 2009 (unrealized
gain for approximately US$10.4 million) which is being recognized over the maturity of the underlying financial instrument, see
Note 15(a)(iv). Likewise, the transfer of net loss on cash flow hedges to the consolidated statements of income is presented in
Note 16(c).



| | (c) | Operations in process include deposits received, loans disbursed, loans collected, funds transferred and other similar types
of transactions, which are made at the end of the month and not reclassified to their final consolidated statements of financial
position account until the first days of the following month. These transactions do not affect the Group’s net consolidated
income.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | The movement of the provision for sundry risks for the years ended December 31, 2011, 2010 and 2009 is as follows:
| | --- | ------------------------------------------------------------------------------------------------------------------



|                                 |  | 2011     |        |   | 2010     |  |         | 2009     | 
|-------------------------------- |  | -------- | ------ | - | -------- |  | ------- | -------- | 
|                                 |  | US$(000) |        |   | US$(000) |  |         | US$(000) | 
|                                 |  |          |        |   |          |  |         |          | 
|Beginning balance                |  |          | 19,425 |   |          |  | 27,225  |          | 
|Provision, Note 24               |  |          | 10,661 |   |          |  | 8,440   |          | 
|Acquisition of private hospitals |  |          | 4,044  |   |          |  | -       |          | 
|Decreases                        |  |          | (5,121 | ) |          |  | (16,240 | )        | 
|                                 |  |          |        |   |          |  |         |          | 
|Ending balance                   |  |          | 29,009 |   |          |  | 19,425  |          | 



Due to the nature of its business,
the Group has some pending legal claims for which it records a provision when, in Management’s and its legal advisor’s
opinion, they will result in an additional liability and such amount can be reliably estimated. Regarding legal claims against
the Group which have not been provided for, in Management’s and its legal advisor’s opinion, they will not have a material
effect on the Group’s consolidated financial statements.





F-57









Notes to the consolidated financial
statements (continued)



| | (e) | As of December 31, 2011, it corresponds to restricted funds related to repurchase agreements (Note 5(o)) and derivative transactions
amounting to US$82.8 million and US$7.3 million, respectively (as of December 31, 2010, it corresponds to restricted funds related
to repurchase agreements, see Note 5(o)). Repurchase agreements mature on June 2012.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 12. | Deposits and obligations
| | --- | ------------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                               |  | 2011     |            |  | 2010     | 
|------------------------------ |  | -------- | ---------- |  | -------- | 
|                               |  | US$(000) |            |  | US$(000) | 
|                               |  |          |            |  |          | 
|Demand deposits                |  |          | 6,614,487  |  |          | 
|Saving deposits                |  |          | 5,096,509  |  |          | 
|Time deposits (c)              |  |          | 5,039,541  |  |          | 
|Severance indemnity deposits   |  |          | 1,757,124  |  |          | 
|Bank’s negotiable certificates |  |          | 136,338    |  |          | 
|                               |  |          |            |  |          | 
|                               |  |          | 18,643,999 |  |          | 
|                               |  |          |            |  |          | 
|Interest payable               |  |          | 59,848     |  |          | 
|                               |  |          |            |  |          | 
|Total                          |  |          | 18,703,847 |  |          | 



The Group has established a policy
to remunerate demand deposits and savings accounts according to an interest rate scale, based on the average balance maintained
in those accounts; on the other hand, according to such policy, balances that are lower than a specified amount for each type of
account, do not bear interest. Also, time deposits earn interest at market rates.



Interest rates are determined by
the Group considering interest rates prevailing in the market in which each of the Group’s subsidiaries operates.



| | (b) | The amounts of non-interest and interest bearing deposits and obligations are made up as follows:
| | --- | -------------------------------------------------------------------------------------------------



|                   |  | 2011     |            |  | 2010     | 
|------------------ |  | -------- | ---------- |  | -------- | 
|                   |  | US$(000) |            |  | US$(000) | 
|Non-interest       |  |          |            |  |          | 
|In Peru            |  |          | 4,645,607  |  |          | 
|In other countries |  |          | 745,081    |  |          | 
|                   |  |          | 5,390,688  |  |          | 
|                   |  |          |            |  |          | 
|Interest bearing   |  |          |            |  |          | 
|In Peru            |  |          | 12,363,772 |  |          | 
|In other countries |  |          | 889,539    |  |          | 
|                   |  |          | 13,253,311 |  |          | 
|                   |  |          |            |  |          | 
|Total              |  |          | 18,643,999 |  |          | 





F-58









Notes to the consolidated financial
statements (continued)



| | (c) | Time deposits balance classified by maturity is as follows:
| | --- | -----------------------------------------------------------



|                        |  | 2011     |           |  | 2010     | 
|----------------------- |  | -------- | --------- |  | -------- | 
|                        |  | US$(000) |           |  | US$(000) | 
|                        |  |          |           |  |          | 
|Up to 3 months          |  |          | 3,163,777 |  |          | 
|From 3 months to 1 year |  |          | 1,531,252 |  |          | 
|From 1 to 3 years       |  |          | 293,393   |  |          | 
|From 3 to 5 years       |  |          | 1,118     |  |          | 
|More than 5 years       |  |          | 50,001    |  |          | 
|                        |  |          |           |  |          | 
|Total                   |  |          | 5,039,541 |  |          | 



As of December 31, 2011 and 2010,
in Management’s opinion, the Group’s deposits and obligations are diversified with no significant concentrations.



As of December 31, 2011 and 2010,
approximately US$6,233.4 million and US$4,925.8 million, respectively of the deposits and obligations balances, are covered by
the Peruvian “Fondo de Seguro de Depósitos” (Deposit Insurance Fund). At those dates, the “Fondo de Seguro
de Depósitos” covered up to US$33,984.1 and US$30,542.2, respectively.



| | 13. | Due to banks and correspondents
| | --- | -------------------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                                   |  | 2011     |           |  | 2010     | 
|---------------------------------- |  | -------- | --------- |  | -------- | 
|                                   |  | US$(000) |           |  | US$(000) | 
|                                   |  |          |           |  |          | 
|International funds and others (i) |  |          | 1,672,348 |  |          | 
|Promotional credit lines (ii)      |  |          | 241,836   |  |          | 
|Inter-bank funds                   |  |          | 138,671   |  |          | 
|                                   |  |          | 2,052,855 |  |          | 
|                                   |  |          |           |  |          | 
|Interest payable                   |  |          | 7,165     |  |          | 
|                                   |  |          |           |  |          | 
|Total                              |  |          | 2,060,020 |  |          | 





F-59









Notes to the consolidated financial
statements (continued)



| | (i) | This item is made up as follows:
| | --- | --------------------------------



|                                            |  | 2011     |           |  | 2010     | 
|------------------------------------------- |  | -------- | --------- |  | -------- | 
|                                            |  | US$(000) |           |  | US$(000) | 
|                                            |  |          |           |  |          | 
|Syndicated loans (*)                        |  |          | 496,073   |  |          | 
|Corporación Andina de Fomento - CAF         |  |          | 200,000   |  |          | 
|China Development Shijiaz huang             |  |          | 148,875   |  |          | 
|Wells Fargo & Co.                           |  |          | 144,998   |  |          | 
|Deutsche Bank AG                            |  |          | 121,679   |  |          | 
|Bank of America N.A.                        |  |          | 95,645    |  |          | 
|Citibank N.A.                               |  |          | 94,968    |  |          | 
|Toronto Dominion Bank                       |  |          | 85,000    |  |          | 
|Bank of New York                            |  |          | 50,000    |  |          | 
|Cobank                                      |  |          | 47,903    |  |          | 
|Atlantic Private Placement Pool SPC         |  |          | 40,000    |  |          | 
|Sumitomo Mitsui Banking Corp.               |  |          | 20,000    |  |          | 
|Standard Chartered Bank                     |  |          | -         |  |          | 
|Banco Latinoamericano de Comercio de Panama |  |          | -         |  |          | 
|JP Morgan Chase Bank                        |  |          | -         |  |          | 
|Mercantil Commercebank                      |  |          | -         |  |          | 
|Commerzbank AG                              |  |          | -         |  |          | 
|Other                                       |  |          | 127,207   |  |          | 
|                                            |  |          |           |  |          | 
|Total                                       |  |          | 1,672,348 |  |          | 



| | (*) | As of December 31, 2011, the balance includes two syndicated loans obtained from foreign financial entities in March 2011 and
October 2010 amounting to US$150.0 million and US$350.0 million, respectively with maturity in March 2014 and October 2013, respectively,
with interest payments every semester at Libor 6m+1.75 percent. During 2011, the syndicated loans, which are subject to variable
interest rate risk, were hedged through IRS with the same maturities; as a result, the loans were economically converted to fix
rate, see Note 11(b).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As of December 31, 2010, the balance included two
syndicated loans amounting to US$350.0 million and US$136.7 million, obtained from several foreign financial entities, with maturity
in October 2013 and March 2011, and interest payment every semester at Libor 6M+1.75 percent and Libor 6M+0.75 percent, respectively.
The syndicated loan amounting to US$136.7 million, subject to variable interest rate risk, was hedged through an IRS with the same
maturities; as a result, it was economically converted to fix rate. Said derivative financial instrument expired in March 2011,
see Note 11(b).



As of December 31, 2011, these
loans have maturities between January 2012 and February 2019 (between January 2011 and May 2019 as of December 31, 2010) and their
annual interest rate is between 0.69 and 10.50 percent (between 0.02 and 12.00 percent as of December 31, 2010).



Some of these borrowings include
standard covenants related to financial ratios, use of funds and other administrative matters, which in Management’s opinion,
do not limit the Group’s operations and it has fully complied with as of the dates of the consolidated financial statements.





F-60









Notes to the consolidated financial
statements (continued)



| | (ii) | Promotional credit lines represent loans granted to BCP by Corporación Financiera de Desarrollo (COFIDE for its Spanish
acronym) to promote the development of Peru, they have maturities between January 2012 and November 2031 and their annual interest
rates are between 6.00 and 7.75 percent (between January 2011 and November 2030 and annual interest rate between 6.00 and 7.75
percent as of December 31, 2010). These credit lines are secured by a loan portfolio amounting to US$241.8 and US$146.0 million
as of December 31, 2011 and 2010, respectively.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Promotional credit lines include
standard covenants related to financial ratios, use of funds and other administrative matters which, in Management’s opinion,
do not limit the Group’s operations and it has fully complied with as of the dates of the consolidated financial statements.



| | (b) | As of December 31, 2011 and 2010, maturities of due to banks and correspondents are shown below, based on the remaining period
to the repayment date:
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------



|Due to banks and correspondents |  | 2011     |           |  | 2010     | 
|------------------------------- |  | -------- | --------- |  | -------- | 
|                                |  | US$(000) |           |  | US$(000) | 
|                                |  |          |           |  |          | 
|Up to 3 months                  |  |          | 585,211   |  |          | 
|From 3 months to 1 year         |  |          | 458,685   |  |          | 
|From 1 to 3 years               |  |          | 731,912   |  |          | 
|From 3 to 5 years               |  |          | 199,575   |  |          | 
|More than 5 years               |  |          | 77,472    |  |          | 
|                                |  |          |           |  |          | 
|Total                           |  |          | 2,052,855 |  |          | 





| | (c) | As of December 31, 2011 and 2010, credit lines granted by several local and foreign financial
institutions, available for future operating activities or to settle capital commitments amounted to US$2,117.0 million (US$2,590.1
million as of December 31, 2010).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







F-61









Notes to the consolidated financial
statements (continued)



| | 14. | Technical reserves, insurance claims reserves and reserves for unearned premiums
| | --- | --------------------------------------------------------------------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                  |  | 2011                       |        
|----------------- |  | -------------------------- | -------
|                  |  | Reserves for direct claims |        
|                  |  | US$(000)                   |        
|                  |  |                            |        
|Life insurance    |  |                            | 100,940
|General insurance |  |                            | 111,901
|Health insurance  |  |                            | 44,718 
|                  |  |                            |        
|Total             |  |                            | 257,559



|                  |  | 2010                       |        
|----------------- |  | -------------------------- | -------
|                  |  | Reserves for direct claims |        
|                  |  | US$(000)                   |        
|                  |  |                            |        
|Life insurance    |  |                            | 84,919 
|General insurance |  |                            | 126,649
|Health insurance  |  |                            | 41,393 
|                  |  |                            |        
|Total             |  |                            | 252,961



Insurance claims reserves represent
reported claims and an estimation for incurred but non reported claims (IBNR). Reported claims are adjusted on the basis of technical
reports received from independent adjusters. Claims to be paid by the reinsurers and coinsurers are shown as ceded claims, which
are presented in the caption “Accounts receivable from reinsurers and coinsurers” of the consolidated financial statements.



As of December 31, 2011, the reserves
for direct claims include reserves for IBNR for life, general and health insurance for an amount of US$28.1, US$3.2 and US$23.8
million, respectively (US$25.3, US$2.1 and US$19.2 million, respectively, as of December 31, 2010).



During 2011 and previous years,
the differences between the estimations for the incurred and non-reported claims and the settled and pending liquidation claims
have not been significant. Retrospective analysis indicates that the amounts accrued are adequate and the Management believes that
the estimated IBNR reserve is sufficient to cover any liability as of December 31, 2011 and 2010.



The movement for the years ended
December 31, 2011 and 2010 of insurance claims and technical reserves is as follows:





F-62









Notes to the consolidated financial
statements (continued)



| | (b) | Insurance claims reserves (direct and assumed):
| | --- | -----------------------------------------------



|                   |  | 2011           |         
|------------------ |  | -------------- | --------
|                   |  | Life insurance |         
|                   |  | US$(000)       |         
|                   |  |                |         
|Initial balance    |  |                | 84,919  
|Claims, Note 23    |  |                | 123,194 
|Payments           |  |                | (108,738
|Translation result |  |                | 1,565   
|                   |  |                |         
|Final balance      |  |                | 100,940 



|                   |  | 2010           |        
|------------------ |  | -------------- | -------
|                   |  | Life insurance |        
|                   |  | US$(000)       |        
|                   |  |                |        
|Initial balance    |  |                | 70,960 
|Claims, Note 23    |  |                | 102,821
|Payments           |  |                | (92,268
|Translation result |  |                | 3,406  
|                   |  |                |        
|Final balance      |  |                | 84,919 



| | (c) | Technical reserves:
| | --- | -------------------



|                                                    |  | 2011           |        
|--------------------------------------------------- |  | -------------- | -------
|                                                    |  | Life insurance |        
|                                                    |  | US$(000)       |        
|                                                    |  |                |        
|Initial balance                                     |  |                | 758,807
|Time course expenses and other                      |  |                | 32,258 
|Unearned premium reserves and annual variation, net |  |                | 9,435  
|Insurance subscriptions                             |  |                | 135,073
|Payments                                            |  |                | (37,470
|Translation result                                  |  |                | 3,072  
|                                                    |  |                |        
|Final balance                                       |  |                | 901,175





F-63









Notes to the consolidated financial
statements (continued)



|                                                    |  | 2010           |        
|--------------------------------------------------- |  | -------------- | -------
|                                                    |  | Life insurance |        
|                                                    |  | US$(000)       |        
|                                                    |  |                |        
|Initial balance                                     |  |                | 630,183
|Time course expenses and other                      |  |                | 32,196 
|Unearned premium reserves and annual variation, net |  |                | (410   
|Insurance subscriptions                             |  |                | 157,198
|Payments                                            |  |                | (34,616
|Translation result                                  |  |                | (25,744
|                                                    |  |                |        
|Final balance                                       |  |                | 758,807



As of December 31, 2011 and 2010,
no additional reserves were needed as a result of the liability adequacy test. The main assumptions used in estimation of retirement,
disability and survival fixed pensions and traditional life and unit linked insurance contracts reserves as of those dates, were
the following:





|Modality                                             |  | Mortality Table                                                     |  | Technical rates                           
|---------------------------------------------------- |  | ------------------------------------------------------------------- |  | ------------------------------------------
|                                                     |  |                                                                     |  |                                           
|Retirement, disability and survival fixed pensions   |  | RV - 2009, B - 85, B – 85 adjusted, MI - 85, B - 2006 and MI - 2006 |  | 2% - 6.03% in US$ and 1.31% - 3.56% in S/.
|                                                     |  |                                                                     |  |                                           
|Traditional life and unit linked insurance contracts |  | CSO 80 adjustable                                                   |  | 4.00% - 5.00% in US$                      





The sensitivity of the estimates
used by the Group to measure its insurance risks is represented primarily by the life insurance risks; the main variables as of
December 31, 2011, are the interest rates and the mortality tables used. The Group has evaluated the changes of the reserves related
to its most significant life insurance contracts included in retirement, disability and survival fixed pensions contracts of +/-
100 bps of the interest rates and of +/- 5 bps of the mortality factors, being the results as follows:



|                                         |  |                       |         |  | Variation of the reserve | 
|---------------------------------------- |  | --------------------- | ------- |  | ------------------------ | 
|Variables                                |  | Amount of the reserve |         |  | Amount                   | 
|                                         |  | US$(000)              |         |  | US$(000)                 | 
|                                         |  |                       |         |  |                          | 
|Portfolio in U.S. Dollars - Basis amount |  |                       | 487,961 |  |                          | 
|Changes in interest rates: + 100 bps     |  |                       | 441,719 |  |                          | 
|Changes in interest rates: - 100 bps     |  |                       | 543,512 |  |                          | 
|Changes in Mortality tables to 105%      |  |                       | 483,003 |  |                          | 
|Changes in Mortality tables to 95%       |  |                       | 493,159 |  |                          | 





F-64









Notes to the consolidated financial
statements (continued)



|                                     |  |                       |         |  | Variation of the reserve | 
|------------------------------------ |  | --------------------- | ------- |  | ------------------------ | 
|Variables                            |  | Amount of the reserve |         |  | Amount                   | 
|                                     |  | US$(000)              |         |  | US$(000)                 | 
|                                     |  |                       |         |  |                          | 
|Portfolio in S/. - Basis amount      |  |                       | 156,504 |  |                          | 
|Changes in interest rates: + 100 bps |  |                       | 139,053 |  |                          | 
|Changes in interest rates: - 100 bps |  |                       | 178,027 |  |                          | 
|Changes in Mortality tables to 105%  |  |                       | 155,240 |  |                          | 
|Changes in Mortality tables to 95%   |  |                       | 157,843 |  |                          | 





F-65







Notes to the consolidated financial
statements (continued)



| | 15. | Bonds and notes issued
| | --- | ----------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                                               |  | Weighted average annual
    interest rate |      |  |      |  |      |          |  |                                          | 
|---------------------------------------------- |  | ----------------------------------------- | ---- |  | ---- |  | ---- | -------- |  | ---------------------------------------- | 
|                                               |  | 2011                                      |      |  | 2010 |  |      | Maturity |  | 2011                                     | 
|                                               |  | %                                         |      |  | %    |  |      |          |  | US$(000)                                 | 
|                                               |  |                                           |      |  |      |  |      |          |  |                                          | 
|Senior notes (i)(*)(***)                       |  |                                           | 5.08 |  |      |  | 5.38 |          |  | Between March 2016 and September 2020    | 
|CCR Inc. MT100 – secured notes (vi)            |  |                                           | -    |  |      |  | -    |          |  | Between October 2012 and July 2017       | 
|Corporate bonds (ii)                           |  |                                           | 5.81 |  |      |  | 5.95 |          |  | Between November 2012 and December 2021  | 
|Subordinated notes (iv)                        |  |                                           | 7.07 |  |      |  | 7.17 |          |  | Between October 2022 and September 2026  | 
|Junior subordinated notes (iii)                |  |                                           | 9.75 |  |      |  | 9.75 |          |  | November 2069                            | 
|Subordinated bonds                             |  |                                           | 7.49 |  |      |  | 7.33 |          |  | Between October 2012 and May 2027        | 
|Subordinated negotiable certificates notes (v) |  |                                           | 6.87 |  |      |  | 6.95 |          |  | Between November 2021 and September 2026 | 
|Leasing bonds (vii)                            |  |                                           | 8.72 |  |      |  | 6.81 |          |  | August 2018                              | 
|Negociable certificates of deposit – Edyficar  |  |                                           | 5.31 |  |      |  | 4.23 |          |  | Between July and August 2012             | 
|Mortgage bonds (vii)                           |  |                                           | 7.44 |  |      |  | 7.63 |          |  | April 2012                               | 
|                                               |  |                                           |      |  |      |  |      |          |  |                                          | 
|                                               |  |                                           |      |  |      |  |      |          |  |                                          | 
|                                               |  |                                           |      |  |      |  |      |          |  |                                          | 
|Interest payable                               |  |                                           |      |  |      |  |      |          |  |                                          | 
|                                               |  |                                           |      |  |      |  |      |          |  |                                          | 
|Total                                          |  |                                           |      |  |      |  |      |          |  |                                          | 





F-66







Notes to the consolidated financial
statements (continued)



| | (i) | During 2011 and 2010, the Group made the following debt issuances:
| | --- | ------------------------------------------------------------------



|Issuances 2011                                    |  | Currency |          |  | Amount issued |  |         | Maturity |  | Rate | 
|------------------------------------------------- |  | -------- | -------- |  | ------------- |  | ------- | -------- |  | ---- | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Senior notes BCP -                                |  |          |          |  |               |  |         |          |  |      | 
|Second
    issuance (*)                           |  |          | US$(000) |  |               |  | 700,000 |          |  | 2016 | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Corporate
    bonds BCP -                         |  |          |          |  |               |  |         |          |  |      | 
|Eighth issuance Series
    A                      |  |          | US$(000) |  |               |  | 91,000  |          |  | 2014 | 
|Ninth issuance Series
    A                       |  |          | S/.(000) |  |               |  | 128,000 |          |  | 2016 | 
|Tenth
    issuance Series A                       |  |          | S/.(000) |  |               |  | 150,000 |          |  | 2021 | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Subordinated
    notes BCP (**)                   |  |          | US$(000) |  |               |  | 350,000 |          |  | 2026 | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Subordinated
    bones PPS                        |  |          |          |  |               |  |         |          |  |      | 
|First
    issuance - first program                |  |          | US$(000) |  |               |  | 60,000  |          |  | 2026 | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Negotiable
    certificates of deposit – Edyficar |  |          |          |  |               |  |         |          |  |      | 
|Fourth
    issuance - first program               |  |          | S/.(000) |  |               |  | 40,000  |          |  | 2012 | 
|Fourth
    issuance - first program               |  |          | S/.(000) |  |               |  | 30,000  |          |  | 2012 | 
|Fourth
    issuance - first program               |  |          | S/.(000) |  |               |  | 30,000  |          |  | 2012 | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Issuances
    2010                                |  |          |          |  |               |  |         |          |  |      | 
|Senior
    notes BCP -                            |  |          |          |  |               |  |         |          |  |      | 
|First
    issuance (***)                          |  |          | US$(000) |  |               |  | 800,000 |          |  | 2020 | 
|                                                  |  |          |          |  |               |  |         |          |  |      | 
|Negotiable
    certificates of deposit – Edyficar |  |          |          |  |               |  |         |          |  |      | 
|Third
    issuance - first program                |  |          | S/.(000) |  |               |  | 50,000  |          |  | 2011 | 



| | (*) | Interest are payable semi-annually. BCP can redeem the Senior notes, in whole or in part, at any time, with the penalty of
the payment of an interest rate equivalent to the American Treasury plus 40 basis points. Payment of principal will take place
at the date of maturity of the notes or when BCP redeems the notes.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (**) | Interest are payable semi-annually. Since September 16, 2021, the interest rate becomes a variable rate of Libor 3 months plus
770.8 basis points payable quarterly. Since September 16, 2016 and until September 15, 2021, BCP may redeem all or part of the
notes, with the penalty of the payment equal to the American Treasury plus 50 basis points . Additionally, from September 16, 2021
or at any later date of coupon payment, BCP may redeem all or part of the notes without penalty. Payment of principal will take
place at the date of maturity of the notes or when BCP redeems the notes.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-67









Notes to the consolidated financial
statements (continued)



| | (***) | Interest are payable semi-annually. BCP can redeem the Senior notes, in whole or in part, at
any time, with the penalty of the payment of an interest rate equivalent to the American Treasury plus 40 basis points. Payment
of principal will take place at the date of maturity of the notes or when BCP redeems the notes.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



During 2011, redeemed corporate
and leasing bonds amounted to US$140.1 million and US$92.4 million, respectively (US$37.1 million and US$55.3 million, respectively,
during 2010).



As of December 31, 2011 and 2010,
the Group has hedged fix corporate bonds issued in Peruvian currency for a notional amount of US$82.2 million and US$113.4 million,
respectively, subject to foreign exchange and variable interest risks. The corporate bonds have been hedged through CCS and IRS
and were economically converted to U.S. Dollars at fix rate, see Note 11(b).



| | (ii) | Corporate bonds include an issuance (Series A) denominated in “Chilean Unidades de Fomento – UF” for UF 2.7
million effected by BCP Emisiones Latam 1 S.A. The Group can redeem 100 percent of the bonds only if the legal reserve funds legislation
and tax law, related to income tax and value added tax change in Peru, Panama or Chile. As of December 31, 2011 and 2010, the balance
amounts to US$115.4 million and US$123.9 million, respectively. This debt, subject to foreign exchange risk, has been hedged through
cross currency swaps (CCS) for a notional amount equal to the principal and with the same maturity, see note 11(b); as a result,
these bonds were economically converted to US$ Dollars.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | In November 2019, interest rate will be Libor 3 months plus 816.7 basis points, with quarterly payments; at that date and or
any interest payment date BCP can redeem 100 percent of the notes, without penalties and after fulfilling certain requirements.
Payment of principal will take place at the date of maturity of the notes or when BCP redeems the notes.
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



This debt does not have collateral
and qualifies as Tier 1 capital for SBS regulations.



| | (iv) | In October 2007, BCP through its Panama branch issued Subordinated Notes for S/.483.3 million. This debt accrues a fixed annual
interest rate of 7.17 percent for the first 10 years, with semiannual payments. In October 2017, interest rate will be the average
of at least three valuations on the market interest rate for sovereign bonds issued by the Peruvian Government (with maturity on
2037), plus 150 basis points, with semiannual payments. From such date, BCP can redeem 100 percent of the notes, without penalties.
Payment of principal will take place at the date of maturity of the notes (October 2022) or when BCP redeems the notes. Cash flows
of this debt, subject to foreign exchange risk and interest rate risk, were hedged, until October 2009 through CCS and IRS, Note
11(b); at that date, the Group discontinued prospectively the combined cash flow hedge of CCS and IRS through their unwinding,
see Note 11(b)(ii).
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v) | In November 2016, the interest rate will change to a floating interest rate, established as Libor plus 2.79 percent, with semiannual
payments. From such date, BCP can redeem 100 percent of the debt, without penalties. Payment of principal will take place at the
date of maturity of the certificates or when BCP redeems the debt.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi) | All issuances are secured by the collection of BCP’s (including its foreign branches) future inflows from electronic
messages sent through the Society for Worldwide Interbank Financial Telecommunications network and utilized within the network
to instruct correspondent banks to make a payment of a certain amount to a beneficiary that is not a financial institution.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-68









Notes to the consolidated financial
statements (continued)



This item is made up as follows:







|                                               |  | Interest            |  | Maturity   |  | 2011     |         |  | 2010    
|---------------------------------------------- |  | ------------------- |  | ---------- |  | -------- | ------- |  | --------
|                                               |  | %                   |  |            |  | US$(000) |         |  | US$(000)
|                                               |  |                     |  |            |  |          |         |  |         
|CCR Inc. MT-100, Payment rights master Trust - |  |                     |  |            |  |          |         |  |         
|2005 Series A Floating Rate Certificates       |  | Libor 1m + 21 bps   |  | 10/10/2012 |  |          | 19,252  |  |         
|2006 Series A Floating Rate Certificates       |  | Libor 1m + 24 bps   |  | 10/03/2016 |  |          | 27,326  |  |         
|2008 Series A Fixed Rate Certificates          |  | 6.27                |  | 10/06/2015 |  |          | 88,170  |  |         
|2008 Series B Floating Rate Certificates       |  | Libor 1m + 225 bps  |  | 10/12/2015 |  |          | 116,731 |  |         
|2010 Series A Floating Rate Certificates       |  | Libor 1m + 47.5 bps |  | 10/10/2012 |  |          | 44,118  |  |         
|2010 Series B Floating Rate Certificates       |  | Libor 1m + 57.6 bps |  | 10/03/2016 |  |          | 51,164  |  |         
|2010 Series C Floating Rate Certificates       |  | Libor 1m + 44.5 bps |  | 10/07/2017 |  |          | 311,912 |  |         
|2010 Series D Floating Rate Certificates       |  | Libor 1m + 36.1 bps |  | 10/07/2014 |  |          | 103,821 |  |         
|                                               |  |                     |  |            |  |          |         |  |         
|Total                                          |  |                     |  |            |  |          | 762,494 |  |         







The 2005-A, 2006-A, 2007-A and
2007-B notes were issued with a financial guaranty insurance policy from AMBAC Assurance Corporation (“AMBAC”), which
secured the timely payment of scheduled principal and certain accrued interest. In 2010 and in order to terminate the financial
guaranty insurance policy from AMBAC, BCP made an exchange offer to holders of these notes, whereby the existing notes were replaced
by new notes with similar terms and maturities.



As of December 31, 2011 and 2010
all issuances subject to variable interest rates were hedged through interest rate swaps (IRS); as a result they were economically
converted to fix rate, see Note 11(b).





F-69









Notes to the consolidated financial
statements (continued)



| | (vii) | Leasing and mortgages bonds are collateralized by the fixed assets financed by the Group. As of December 31, 2010, the Group
has hedged fix leasing bonds issued in Peruvian currency for a notional amount of US$15.7 million hedged through IRS for a notional
amount equal to the principal and with the same maturity see note 11(b); as a result, these bonds were economically converted to
US$ Dollars.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Bonds and notes issued, classified by maturity are shown below:
| | --- | ---------------------------------------------------------------



|                        |  | 2011     |           |  | 2010     | 
|----------------------- |  | -------- | --------- |  | -------- | 
|                        |  | US$(000) |           |  | US$(000) | 
|                        |  |          |           |  |          | 
|Up to 3 months          |  |          | 55,335    |  |          | 
|From 3 months to 1 year |  |          | 227,195   |  |          | 
|From 1 to 3 years       |  |          | 683,228   |  |          | 
|From 3 to 5 years       |  |          | 345,134   |  |          | 
|More than 5 years       |  |          | 2,609,830 |  |          | 
|                        |  |          |           |  |          | 
|Total                   |  |          | 3,920,722 |  |          | 



Bonds and notes issued have certain
financial and operating covenants which, in Management’s opinion, the Group is in compliance at the date of the consolidated
statements of financial position.



| | 16. | Equity
| | --- | ------



| | (a) | Share capital -
| | --- | ---------------

As of December 31, 2011, 2010 and
2009, 94,382,317 shares of capital stock were issued at US$5 per share.



| | (b) | Treasury stock -
| | --- | ----------------



As of December 31, 2011, treasury
stock comprises the par value of 14,974,957 Credicorp’s shares (14,941,833 and 14,847,842 Credicorp’s shares as of
December, 31, 2010 and 2009, respectively) owned by the Group’s companies.



The difference between their acquisition
cost of US$217.8 million and their par value of US$74.9 million (as of December 31, 2010 and 2009 acquisition cost of US$209.2
million and US$198.0 million, respectively and their par value of US$74.6 million and US$74.2 million, respectively) is presented
as a reduction of “Capital surplus”.





F-70









Notes to the consolidated financial
statements (continued)



| | (c) | Reserves -
| | --- | ----------



In accordance with Peruvian regulation,
a reserve of up to at least 35 percent of paid-in capital of the Group’s subsidiaries operating in Peru is required to be
established through annual transfers of at least 10 percent of their net income. In accordance with Bolivian regulation, a reserve
of up to at least 50 percent of paid-in capital of the Group’s subsidiaries operating in Bolivia is required to be established
through annual transfers of at least 10 percent of their net income. As of December 31, 2011, 2010 and 2009, these reserves amounted
to approximately US$387.3, US$369.3 and US$242.9 million, respectively.



The Shareholders’ meetings
held on March 31, 2011, March 26, 2010 and March 31, 2009 agreed to transfer from “Retained earnings” to “Reserves”
US$407.8, US$331.6 and US$238.1 million, respectively.





F-71









Notes to the consolidated financial
statements (continued)



The caption “Other reserves”
includes the unrealized net gain (loss) from available-for-sale investments and from derivatives instruments used as cash flow
hedges net of its corresponding deferred income tax, and non-controlling interest; its movement is as follows:



|                                                                                                                                 |  | Unrealized
    net gain (loss) of:         |         
|-------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------ | --------
|                                                                                                                                 |  | Available-for-sale investments
    reserve |         
|                                                                                                                                 |  | US$(000)                                   |         
|                                                                                                                                 |  |                                            |         
|Balances
    as of January 1, 2009                                                                                               |  |                                            | 72,729  
|Net unrealized gain from
    available-for-sale investments                                                                      |  |                                            | 319,041 
|Transfer of net realized
    gain from investments available-for-sale to the consolidated income statement, net of realized loss |  |                                            | (112,618
|Transfer of impairment
    on investment available-for-sale to the consolidated income statement, Note 5(c)                      |  |                                            | 9,825   
|Net unrealized gain from
    cash flow hedges, Note 11(b)(ii)                                                                    |  |                                            | -       
|Transfer
    of net realized loss from cash flow hedges to the consolidated income statement, Note 11(b)(ii)                     |  |                                            | -       
|                                                                                                                                 |  |                                            |         
|Balances as of December
    31, 2009                                                                                             |  |                                            | 288,977 
|Net unrealized gain from
    available-for-sale investments                                                                      |  |                                            | 191,305 
|Transfer of net realized
    gain from investments available-for-sale to the consolidated income statement, net of realized loss |  |                                            | (59,785 
|Transfer of impairment
    on investment available-for-sale to the consolidated income statement, Note 5(c)                      |  |                                            | 3,250   
|Net unrealized loss from
    cash flow hedges,  Note 11(b)(ii)                                                                   |  |                                            | -       
|Transfer
    of net realized loss from cash flow hedges to the consolidated income statement, Note 11(b)(ii)                     |  |                                            | -       
|                                                                                                                                 |  |                                            |         
|Balances as of December
    31, 2010                                                                                             |  |                                            | 423,747 
|Net unrealized gain from
    available-for-sale investments                                                                      |  |                                            | 6,330   
|Transfer of net realized
    gain from investments available-for-sale to the consolidated income statement, net of realized loss |  |                                            | (35,760 
|Transfer of impairment
    on investment available-for-sale to the consolidated income statement, Note 5(c)                      |  |                                            | 1,025   
|Net unrealized loss from
    cash flow hedges, Note11(b)(ii)                                                                     |  |                                            | -       
|Transfer of net realized
    loss from cash flow hedges to the consolidated income statement, Note 11(b)(ii)                     |  |                                            | -       
|                                                                                                                                 |  |                                            |         
|Balances
    as of December 31, 2011                                                                                             |  |                                            | 395,342 





F-72









Notes to the consolidated financial
statements (continued)



| | (d) | Components of other comprehensive income -
| | --- | ------------------------------------------



The consolidated statement of comprehensive
income includes other comprehensive income from available-for-sale investments and from derivatives financial instruments used
as cash flow hedges; its movement is as follows:



|                                                                                                                                 |  | 2011     |         |   | 2010     |  |         | 2009     | 
|-------------------------------------------------------------------------------------------------------------------------------- |  | -------- | ------- | - | -------- |  | ------- | -------- | 
|                                                                                                                                 |  | US$(000) |         |   | US$(000) |  |         | US$(000) | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|Available-for-sale investments:                                                                                                  |  |          |         |   |          |  |         |          | 
|Net unrealized
    gain from available-for-sale investments                                                                      |  |          | 6,330   |   |          |  | 191,305 |          | 
|Transfer of net realized
    gain from investments available-for-sale to the consolidated income statement, net of realized loss |  |          | (35,760 | ) |          |  | (59,785 | )        | 
|Transfer
    of impairment on investment available-for-sale to consolidated income statement                                     |  |          | 1,025   |   |          |  | 3,250   |          | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|Sub
    total                                                                                                                    |  |          | (28,405 | ) |          |  | 134,770 |          | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|Non-controlling interest
    on investment available-for-sale                                                                    |  |          | 4,842   |   |          |  | 22,795  |          | 
|Income
    tax                                                                                                                   |  |          | (29,605 | ) |          |  | 67,696  |          | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|                                                                                                                                 |  |          | (53,168 | ) |          |  | 225,261 |          | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|Cash flow hedges:                                                                                                                |  |          |         |   |          |  |         |          | 
|Net unrealized (loss)
    gain from cash flow hedges                                                                             |  |          | (23,578 | ) |          |  | (44,584 | )        | 
|Transfer
    of net realized loss from cash flow hedges to the consolidated income statement                                     |  |          | 25,430  |   |          |  | 39,089  |          | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|Sub
    total                                                                                                                    |  |          | 1,852   |   |          |  | (5,495  | )        | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|Non-controlling interest
    of cash flow hedges                                                                                 |  |          | (272    | ) |          |  | (138    | )        | 
|Income
    tax                                                                                                                   |  |          | (1,412  | ) |          |  | (1,686  | )        | 
|                                                                                                                                 |  |          |         |   |          |  |         |          | 
|                                                                                                                                 |  |          | 168     |   |          |  | (7,319  | )        | 



| | (e) | Dividend distribution -
| | --- | -----------------------



| |  | During 2011, 2010 and 2009, Credicorp paid cash dividends, net of the effect of treasury shares, for approximately US$155.5,
US$135.5 and US$119.3 million, respectively.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Board of Directors Meeting
dated February 22, 2012 agreed to declare a cash dividend of US$2.3 per common share, approximately US$217.1 million, corresponding
to the 2011 results, dividends will be paid in cash starting May 18, 2012.



| |  | In accordance with current Peruvian legislation, there is no restriction for overseas remittance of dividends or the repatriation
of foreign investment. Dividends paid by the Peruvian subsidiaries to Credicorp are subject to a withholding tax of 4.1 percent.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-73









Notes to the consolidated financial
statements (continued)



| | (f) | Equity for legal purposes (Regulatory capital) -
| | --- | ------------------------------------------------



| |  | As of December 31, 2011 and 2010, the regulatory capital for Credicorp’s subsidiaries engaged in financial and insurance
activities in Peru calculated following SBS regulations amounted to approximately US$3,022.7 and US$2,391.3 million, respectively.
As of December 31, 2011, the consolidated regulatory capital for Credicorp exceeds by approximately US$549.2 million the minimum
regulatory consolidated capital required by the SBS (approximately US$514.8 million as of December 31, 2010).
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 17. | Taxes
| | --- | -----



| | (a) | Credicorp is not subject to income tax or any taxes on capital gains, equity or property. Credicorp’s Peruvian subsidiaries
are subject to corporate taxation on income under the Peruvian Tax system. The statutory Income Tax rate is 30 percent on taxable
income after calculating the workers’ profit sharing, which in accordance with current legislation is determined using a
5 percent rate.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Credicorp’s Bolivian subsidiaries
are subject to corporate taxation on income under the Bolivian Tax system. The statutory income tax rate is 25 percent.



ASHC and its Subsidiaries are not
subject to taxes in the Cayman Islands or Panama. For the three years ended December 31, 2011, 2010 and 2009, no taxable income
was generated from their operations in the United States of America.



| |  | The reconciliation between the statutory income tax rate and the effective tax rate for the Group is as follows:
| |  | ----------------------------------------------------------------------------------------------------------------



|                                                                                        |  | 2011 |       |   | 2010 |  |       | 2009 | 
|--------------------------------------------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | ---- | 
|                                                                                        |  | %    |       |   | %    |  |       | %    | 
|                                                                                        |  |      |       |   |      |  |       |      | 
|Peruvian statutory income tax rate                                                      |  |      | 30.00 |   |      |  | 30.00 |      | 
|Increase (decrease) in the statutory tax rate due to:                                   |  |      |       |   |      |  |       |      | 
|(i)   (Decrease) increase arising from net income of subsidiaries not domiciled in Peru |  |      | (0.91 | ) |      |  | (0.36 | )    | 
|(ii)   Non-taxable income, net                                                          |  |      | (4.49 | ) |      |  | (4.73 | )    | 
|(iii)  Translation results not considered for tax purposes                              |  |      | (2.07 | ) |      |  | (1.24 | )    | 
|                                                                                        |  |      |       |   |      |  |       |      | 
|Effective income tax rate                                                               |  |      | 22.53 |   |      |  | 23.67 |      | 





F-74









Notes to the consolidated financial
statements (continued)



| | (b) | Income tax expense as of December 31, 2011, 2010 and 2009 comprises:
| | --- | --------------------------------------------------------------------



|                   |  | 2011     |         |   | 2010     |  |         | 2009     | 
|------------------ |  | -------- | ------- | - | -------- |  | ------- | -------- | 
|                   |  | US$(000) |         |   | US$(000) |  |         | US$(000) | 
|                   |  |          |         |   |          |  |         |          | 
|Current -          |  |          |         |   |          |  |         |          | 
|In Peru            |  |          | 217,726 |   |          |  | 200,195 |          | 
|In other countries |  |          | 1,839   |   |          |  | 3,219   |          | 
|                   |  |          | 219,565 |   |          |  | 203,414 |          | 
|Deferred -         |  |          |         |   |          |  |         |          | 
|In Peru            |  |          | (9,057  | ) |          |  | (16,333 | )        | 
|                   |  |          |         |   |          |  |         |          | 
|Total              |  |          | 210,508 |   |          |  | 187,081 |          | 



The deferred income tax has been
calculated on all temporary differences considering an income tax rate of 30 percent.



| | (c) | The following table presents a summary of the Group’s deferred income tax:
| | --- | --------------------------------------------------------------------------



|                                          |  | 2011     |          |   | 2010     | 
|----------------------------------------- |  | -------- | -------- | - | -------- | 
|                                          |  | US$(000) |          |   | US$(000) | 
|                                          |  |          |          |   |          | 
|Assets                                    |  |          |          |   |          | 
|Allowance for loan losses, net            |  |          | 73,429   |   |          | 
|Reserve for sundry risks, net             |  |          | 10,230   |   |          | 
|Share-based compensation rights provision |  |          | 3,544    |   |          | 
|Other                                     |  |          | 27,267   |   |          | 
|                                          |  |          |          |   |          | 
|Deferred income tax asset                 |  |          | 114,470  |   |          | 
|                                          |  |          |          |   |          | 
|Liabilities                               |  |          |          |   |          | 
|Unrealized net gains on investments       |  |          | (67,405  | ) |          | 
|Intangibles assets, net                   |  |          | (25,859  | ) |          | 
|Deferred commissions                      |  |          | (5,742   | ) |          | 
|Indexed certificates                      |  |          | (5,596   | ) |          | 
|Leasing operations, net                   |  |          | (2,153   | ) |          | 
|Gain for difference tax exchange          |  |          | (1,438   | ) |          | 
|Other                                     |  |          | (19,767  | ) |          | 
|                                          |  |          |          |   |          | 
|Deferred income tax liability             |  |          | (127,960 | ) |          | 
|                                          |  |          |          |   |          | 
|Net deferred income tax liability         |  |          | (13,490  | ) |          | 



F-75







Notes to the consolidated financial
statements (continued)



Credicorp and its subsidiaries
have recorded a deferred income tax as part of the equity caption “Other reserves” for US$31.0, US$66.0 and US$14.1
million, as of December 31, 2011, 2010 and 2009, respectively, related to the income tax effects of unrealized gains and losses
on investments available for sale and cash flow hedges. Likewise, the Group recognized the deferred tax liability arising from
the acquisition of private hospitals (year 2011), see Note 2(a), Edyficar (year 2009), see Note 2(c) and AFP Prima (year 2006)
for approximately US$35.8 million (approximately US$25.4 million, as of December 31, 2010).



| | (d) | The Peruvian Tax Authority has the right to review and, if necessary, amend the annual tax returns of the Peruvian subsidiaries
up to four years after their filing. From the review of the subsidiaries’ tax returns by the Tax Authority no significant
additional taxes arose for the consolidated financial statements. Management of each subsidiary has filed an appeal in the applicable
cases. Tax returns of the main subsidiaries not yet reviewed by the Peruvian Tax Authority are the following:
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Banco de Crédito del Perú | 2008 – 2011
|------------------------- | -----------
|Edyficar                  | 2008 – 2011
|Prima AFP                 | 2008 – 2011
|Pacífico Peruano Suiza    | 2007 – 2011
|Pacífico Vida             | 2007 – 2011



Nevertheless, the Peruvian
Tax Authority has started tax audits for the fiscal year 2009 in Prima AFP and Pacifico Vida.



Any additional tax arising
as a result of the Tax Authority review will be charged to income in the year when such additional tax is determined. At present,
it is not possible to estimate the adjustments that the Tax Authority may determine; however, in Management’s opinion, it
is not expected that any additional tax will be determined in amounts considered significant to the consolidated financial statements
as of December 31, 2011 and 2010.



Likewise, the Income Tax returns
for the fiscal years 2006 to 2011 from Banco de Crédito de Bolivia are pending to be reviewed by the Bolivian Tax Authority.



| | 18. | Share-based compensation plans
| | --- | ------------------------------



| | (a) | Stock appreciation rights -
| | --- | ---------------------------



As indicated in Note 3(w), Credicorp
has granted stock appreciation rights (SARs) to certain key employees who have at least one year serving Credicorp or any of its
subsidiaries. At the grant date and in each one of the subsequent three years, the granted SARs may be exercised up to 25 percent
of all SARs granted in the plan. The SARs expire up to April, 2014.



F-76







Notes to the consolidated financial
statements (continued)



The number of outstanding SARs
and their exercise prices are as follows:



|         |  | Number of outstanding |         |  |                       |  |         |                | 
|-------- |  | --------------------- | ------- |  | --------------------- |  | ------- | -------------- | 
|Year of  |  | SARs issued as of     |         |  | Number of Vested SARs |  |         |                | 
|Issuance |  | December 31, 2011     |         |  | as of December 31     |  |         | Exercise price | 
|         |  |                       |         |  | 2011                  |  |         | 2010           | 
|         |  |                       |         |  |                       |  |         |                | 
|         |  |                       |         |  |                       |  |         |                | 
|2003     |  |                       | -       |  |                       |  | -       |                | 
|2004     |  |                       | 40,000  |  |                       |  | 40,000  |                | 
|2005     |  |                       | 40,000  |  |                       |  | 40,000  |                | 
|2006     |  |                       | 53,000  |  |                       |  | 53,000  |                | 
|2007     |  |                       | 45,007  |  |                       |  | 45,007  |                | 
|2008     |  |                       | 65,216  |  |                       |  | 65,216  |                | 
|         |  |                       |         |  |                       |  |         |                | 
|         |  |                       | 243,223 |  |                       |  | 243,223 |                | 



Credicorp’s Management has
estimated the SARs’ fair value as of December 31, 2011 and 2010, using the binomial option pricing model, considering the
following market information:



|Key assumptions                              |  | 2011 |            |   | 2010 |    
|-------------------------------------------- |  | ---- | ---------- | - | ---- | ---
|                                             |  |      |            |   |      |    
|Expected volatility                          |  |      | 39.05      | % |      |    
|Risk free interest rate                      |  |      | 2.43       | % |      |    
|Expected lifetime                            |  |      | 1.76 years |   |      |    
|Quoted price of Credicorp shares at year-end |  | US$  | 109.47     |   |      | US$



The expected life of the SARs is
based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected
volatility reflects the assumption that the historical volatility over a period similar to the life of the SARs is indicative of
future trends, which may also not necessarily be the actual outcome.



F-77







Notes to the consolidated financial
statements (continued)



The movement of SARs for the years
ended December 31, 2011 and 2010 is as follows:



|                                  |  | 2011        |          |   | 2010        | 
|--------------------------------- |  | ----------- | -------- | - | ----------- | 
|                                  |  | Outstanding |          |   |             | 
|                                  |  | SARs        |          |   | Vested SARs | 
|                                  |  | Number      |          |   | Number      | 
|                                  |  |             |          |   |             | 
|                                  |  |             |          |   |             | 
|Balance as of January 1           |  |             | 795,155  |   |             | 
|Vested                            |  |             | -        |   |             | 
|Exercised                         |  |             | (550,103 | ) |             | 
|Decrease                          |  |             | (1,829   | ) |             | 
|(Decrease) increase in fair value |  |             | -        |   |             | 
|                                  |  |             |          |   |             | 
|Balance as of December 31         |  |             | 243,223  |   |             | 



Credicorp assumes the payment of
the related income tax on behalf of its employees, which corresponds to 30 percent of the benefit. Credicorp estimates said income
tax over the basis of the liability recorded for the vested benefits.



The liabilities recorded for this
plan, including the above mentioned income tax, are included in the consolidated statements of financial position caption “Other
liabilities – Payroll taxes, salaries and other personnel expenses”, Note 11(a), and the expenses in the consolidated
statements of income caption “Salaries and employees benefits”. Modifications to SARs prices were agreed with Group’s
employees.



During 2011, 2010 and previous
years, the Group signed several contracts by which it acquired certificates linked to the yield of Credicorp’s shares, see
Note 7(c).



| | (b) | Stock awards (“equity-settled transaction”)
| | --- | -------------------------------------------



Under this new plan Credicorp
grants its own shares to the plan beneficiaries. Shares granted will vest up to 33.3 percent of all granted shares in each one
of the subsequent three years to the grant date (March or April of each year).



The fair value of stock awards
granted is estimated at the grant date using a binomial pricing model with similar key assumptions as those used for the valuation
of SARs (see paragraph (a) above), taking into account the terms and conditions upon which the shares were granted. Credicorp assumes
the payment of the related income tax on behalf of its employees, which corresponds to 30 percent of the benefit. Credicorp estimates
said income tax over the basis of the fair value of the shares granted at the grant date.



F-78







Notes to the consolidated financial
statements (continued)



As of December 31, 2011, the Group
had granted 549,529 shares of Credicorp, of which 333,294 shares were outstanding (396,658 and 321,630 shares, respectively as
of December 31, 2010). The expense recorded for the year ended December 31, 2011 amounted to approximately US$15.7 million (US$11.2
and US$5.9 million for the years ended December 31, 2010 and 2009, respectively).



| | 19. | Off-balance sheet accounts
| | --- | --------------------------



| | (a) | This item is made up as follows:
| | --- | --------------------------------



|                                                   |  | 2011     |            |  | 2010     | 
|-------------------------------------------------- |  | -------- | ---------- |  | -------- | 
|                                                   |  | US$(000) |            |  | US$(000) | 
|                                                   |  |          |            |  |          | 
|Contingent credits - indirect loans (b), Note 6(a) |  |          |            |  |          | 
|Guarantees and stand by letters                    |  |          | 3,128,534  |  |          | 
|Import and export letters of credit                |  |          | 599,466    |  |          | 
|                                                   |  |          | 3,728,000  |  |          | 
|                                                   |  |          |            |  |          | 
|Derivatives                                        |  |          |            |  |          | 
|Held for trading, Note 11(b)                       |  |          |            |  |          | 
|Forward currency contracts - buy                   |  |          | 1,892,970  |  |          | 
|Forward currency contracts - sell                  |  |          | 1,580,294  |  |          | 
|Interest rate swaps                                |  |          | 697,436    |  |          | 
|Currency swaps                                     |  |          | 312,975    |  |          | 
|Options                                            |  |          | 64,184     |  |          | 
|Held as hedges, Note 11(b)                         |  |          |            |  |          | 
|Cash flow hedges:                                  |  |          |            |  |          | 
|Interest rate swaps                                |  |          | 1,187,673  |  |          | 
|Cross currency swaps                               |  |          | 115,433    |  |          | 
|Cross currency swaps and interest rate swaps       |  |          | 82,226     |  |          | 
|Fair value hedges:                                 |  |          |            |  |          | 
|Interest rate swap                                 |  |          | 54,049     |  |          | 
|                                                   |  |          | 5,987,240  |  |          | 
|                                                   |  |          |            |  |          | 
|Responsibilities under credit lines agreements (c) |  |          | 3,525,517  |  |          | 
|                                                   |  |          |            |  |          | 
|Total                                              |  |          | 13,240,757 |  |          | 



| | (b) | In the normal course of its business, the Group’s banking subsidiaries are party to transactions with off-balance sheet
risk. These transactions expose them to credit risk in addition to the amounts recognized in the consolidated statements of financial
position.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-79







Notes to the consolidated financial
statements (continued)



Credit risk for off-balance sheet
financial instruments is defined as the possibility of sustaining a loss because any other party to a financial instrument fails
to perform in accordance with the terms of the contract. The exposures to losses are represented by the contractual amounts specified
in the related contracts. The Group applies the same credit policies in making commitments and conditional obligations as it does
for on-balance sheet instruments (Note 6(a)), including the requirement to obtain collateral when it is deemed necessary. Collateral
held varies, but may include deposits in financial institutions, securities or other assets. Many of the contingent transactions
are expected to expire without any performance being required; therefore, the total committed amounts do not necessarily represent
future cash requirements.



| | (c) | Responsibilities under credit lines agreements include credit lines and other consumer loans facilities (credit card) and are
cancelable upon notification to the client.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 20. | Interest and dividend income and interest expenses
| | --- | --------------------------------------------------



These items are made up as follow:



|                                                                     |  | 2011     |           |   | 2010     |  |           | 2009     | 
|-------------------------------------------------------------------- |  | -------- | --------- | - | -------- |  | --------- | -------- | 
|                                                                     |  | US$(000) |           |   | US$(000) |  |           | US$(000) | 
|                                                                     |  |          |           |   |          |  |           |          | 
|Interest and dividend income                                         |  |          |           |   |          |  |           |          | 
|Interest on loans                                                    |  |          | 1,533,351 |   |          |  | 1,218,728 |          | 
|Interest on investments available-for-sale                           |  |          | 223,809   |   |          |  | 191,971   |          | 
|Interest on due from banks                                           |  |          | 42,886    |   |          |  | 32,337    |          | 
|Interest on trading securities                                       |  |          | 3,900     |   |          |  | 4,824     |          | 
|Dividends from investments available-for-sale and trading securities |  |          | 15,321    |   |          |  | 11,615    |          | 
|Other interest income                                                |  |          | 18,497    |   |          |  | 12,233    |          | 
|                                                                     |  |          |           |   |          |  |           |          | 
|Total                                                                |  |          | 1,837,764 |   |          |  | 1,471,708 |          | 
|                                                                     |  |          |           |   |          |  |           |          | 
|Interest expenses                                                    |  |          |           |   |          |  |           |          | 
|Interest on deposits and obligations                                 |  |          | (217,322  | ) |          |  | (156,106  | )        | 
|Interest on bonds and notes issued                                   |  |          | (186,743  | ) |          |  | (124,311  | )        | 
|Interest on due to banks and correspondents                          |  |          | (64,369   | ) |          |  | (43,532   | )        | 
|Loss from hedging derivatives instruments                            |  |          | (7,666    | ) |          |  | (25,692   | )        | 
|Other interest expenses                                              |  |          | (55,500   | ) |          |  | (64,480   | )        | 
|                                                                     |  |          |           |   |          |  |           |          | 
|Total                                                                |  |          | (531,600  | ) |          |  | (414,121  | )        | 



During 2011, 2010 and 2009, the interest income
accrued on impaired financial instruments recognized in the consolidated statements of income amounted to US$7.8, US$7.2 and US$5.0
million, respectively.



F-80







Notes to the consolidated financial
statements (continued)





| | 21. | Banking services commissions
| | --- | ----------------------------



This item is made up as follows:



|                                                                      |  | 2011     |         |  | 2010     |  |         | 2009     | 
|--------------------------------------------------------------------- |  | -------- | ------- |  | -------- |  | ------- | -------- | 
|                                                                      |  | US$(000) |         |  | US$(000) |  |         | US$(000) | 
|                                                                      |  |          |         |  |          |  |         |          | 
|Maintenance of accounts, transfers and credit and debit card services |  |          | 288,493 |  |          |  | 251,840 |          | 
|Funds management                                                      |  |          | 147,470 |  |          |  | 125,605 |          | 
|Contingent loans fees                                                 |  |          | 52,162  |  |          |  | 43,781  |          | 
|Collection services                                                   |  |          | 57,036  |  |          |  | 49,836  |          | 
|Commissions for banking services                                      |  |          | 28,249  |  |          |  | 22,038  |          | 
|Brokerage and custody services                                        |  |          | 8,737   |  |          |  | 7,473   |          | 
|Other                                                                 |  |          | 25,696  |  |          |  | 24,322  |          | 
|                                                                      |  |          |         |  |          |  |         |          | 
|Total                                                                 |  |          | 607,843 |  |          |  | 524,895 |          | 



| | 22. | Net premiums earned
| | --- | -------------------



This item is made up as follows:



|                  |  |              |         |  | Premiums ceded     |  |          | Assumed        |  |  |              |  |  | Percentage     |        
|----------------- |  | ------------ | ------- |  | ------------------ |  | -------- | -------------- |  |  | ------------ |  |  | -------------- | -------
|                  |  | Gross        |         |  | to reinsurers, net |  |          | from other     |  |  | Net premiums |  |  | of assumed net |        
|                  |  | premiums (*) |         |  | (**)               |  |          | companies, net |  |  | earned       |  |  | premiums       |        
|                  |  | US$(000)     |         |  | US$(000)           |  |          | US$(000)       |  |  | US$(000)     |  |  | %              |        
|                  |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|2011              |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|Life insurance    |  |              | 200,468 |  |                    |  | (8,633   | )              |  |  | -            |  |  |                | 191,835
|Health insurance  |  |              | 236,512 |  |                    |  | (3,195   | )              |  |  | 2,338        |  |  |                | 235,655
|General insurance |  |              | 258,274 |  |                    |  | (117,975 | )              |  |  | 6,634        |  |  |                | 146,933
|                  |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|Total             |  |              | 695,254 |  |                    |  | (129,803 | )              |  |  | 8,972        |  |  |                | 574,423
|                  |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|2010              |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|Life insurance    |  |              | 156,611 |  |                    |  | (7,544   | )              |  |  | -            |  |  |                | 149,067
|Health insurance  |  |              | 203,635 |  |                    |  | (2,817   | )              |  |  | 3,355        |  |  |                | 204,173
|General insurance |  |              | 204,236 |  |                    |  | (84,935  | )              |  |  | 7,752        |  |  |                | 127,053
|                  |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|Total             |  |              | 564,482 |  |                    |  | (95,296  | )              |  |  | 11,107       |  |  |                | 480,293
|                  |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|2009              |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|Life insurance    |  |              | 127,569 |  |                    |  | (6,120   | )              |  |  | -            |  |  |                | 121,449
|Health insurance  |  |              | 174,396 |  |                    |  | (2,536   | )              |  |  | 2,967        |  |  |                | 174,827
|General insurance |  |              | 232,369 |  |                    |  | (110,613 | )              |  |  | 6,650        |  |  |                | 128,406
|                  |  |              |         |  |                    |  |          |                |  |  |              |  |  |                |        
|Total             |  |              | 534,334 |  |                    |  | (119,269 | )              |  |  | 9,617        |  |  |                | 424,682



| | (*) | Includes the annual variation of the technical and unearned premiums reserves.
| | --- | ------------------------------------------------------------------------------



F-81







Notes to the consolidated financial
statements (continued)



| | (**) | “Premiums ceded to reinsurers, net” include:
| | ---- | --------------------------------------------



| | (i) | US$40.3 million for automatic contracts (mainly excess of loss) and reinstallation premiums (US$33.3 million for the year 2010).
| | --- | --------------------------------------------------------------------------------------------------------------------------------



| | (ii) | Gain of US$98.6 million for facultative contracts and of US$9.1 for unearned premiums ceded reserves (gain of US$94.4 and US$32.4
million for the year 2010).
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 23. | Net claims incurred for life, property and casualty and health insurance contracts
| | --- | ----------------------------------------------------------------------------------



This item is made up as follows:



|                                   |  | 2011      |        
|---------------------------------- |  | --------- | -------
|                                   |  | Life      |        
|                                   |  | insurance |        
|                                   |  | US$(000)  |        
|                                   |  |           |        
|Gross insurance claims, Note 14(b) |  |           | 123,194
|Ceded claims, Note 8(b)            |  |           | (4,515 
|                                   |  |           |        
|Net insurance claims               |  |           | 118,679



|                                   |  | 2010      |        
|---------------------------------- |  | --------- | -------
|                                   |  | Life      |        
|                                   |  | insurance |        
|                                   |  | US$(000)  |        
|                                   |  |           |        
|Gross insurance claims, Note 14(b) |  |           | 102,821
|Ceded claims, Note 8(b)            |  |           | (2,719 
|                                   |  |           |        
|Net insurance claims               |  |           | 100,102



|                       |  | 2009      |       
|---------------------- |  | --------- | ------
|                       |  | Life      |       
|                       |  | insurance |       
|                       |  | US$(000)  |       
|                       |  |           |       
|Gross insurance claims |  |           | 80,971
|Ceded claims           |  |           | (1,762
|                       |  |           |       
|Net insurance claims   |  |           | 79,209



F-82







Notes to the consolidated financial
statements (continued)



| | 24. | Other income and expenses
| | --- | -------------------------



These items are made up as follow:



|                                                         |  | 2011     |         |  | 2010     |  |        | 2009     | 
|-------------------------------------------------------- |  | -------- | ------- |  | -------- |  | ------ | -------- | 
|                                                         |  | US$(000) |         |  | US$(000) |  |        | US$(000) | 
|                                                         |  |          |         |  |          |  |        |          | 
|Other income                                             |  |          |         |  |          |  |        |          | 
|Income from sale of seized assets                        |  |          | 4,089   |  |          |  | 5,373  |          | 
|Real estate rental income                                |  |          | 5,672   |  |          |  | 4,309  |          | 
|Recoveries of other accounts receivable and other assets |  |          | 658     |  |          |  | 1,749  |          | 
|Other                                                    |  |          | 19,955  |  |          |  | 19,237 |          | 
|                                                         |  |          |         |  |          |  |        |          | 
|Total other income                                       |  |          | 30,374  |  |          |  | 30,668 |          | 
|                                                         |  |          |         |  |          |  |        |          | 
|Other expenses                                           |  |          |         |  |          |  |        |          | 
|Commissions from insurance activities                    |  |          | 48,847  |  |          |  | 39,796 |          | 
|Sundry technical insurance expenses                      |  |          | 29,292  |  |          |  | 17,413 |          | 
|Provision for sundry risks, Note 11(d)                   |  |          | 10,661  |  |          |  | 8,440  |          | 
|Provision for other accounts receivables                 |  |          | 1,649   |  |          |  | 2,613  |          | 
|Other                                                    |  |          | 19,091  |  |          |  | 22,957 |          | 
|                                                         |  |          |         |  |          |  |        |          | 
|Total other expenses                                     |  |          | 109,540 |  |          |  | 91,219 |          | 



| | 25. | Earnings per share
| | --- | ------------------



The net earnings per ordinary share has been determined
over the net income attributable to equity holders of Credicorp, as follows:



|                                                                                      |  | 2011     |             |   | 2010     |  |             | 2009     | 
|------------------------------------------------------------------------------------- |  | -------- | ----------- | - | -------- |  | ----------- | -------- | 
|                                                                                      |  | US$(000) |             |   | US$(000) |  |             | US$(000) | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Net income attributable to equity holders of Credicorp (in thousands of U.S. Dollars) |  |          | 709,272     |   |          |  | 571,302     |          | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Number of shares:                                                                     |  |          |             |   |          |  |             |          | 
|Ordinary shares, Note 16(a)                                                           |  |          | 94,382,317  |   |          |  | 94,382,317  |          | 
|Less - treasury shares                                                                |  |          | (14,941,833 | ) |          |  | (14,847,842 | )        | 
|Acquisition of treasury shares, net                                                   |  |          | (24,843     | ) |          |  | (70,494     | )        | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Weighted average number of ordinary shares for basic earnings                         |  |          | 79,415,641  |   |          |  | 79,463,981  |          | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Plus - effect of dilution                                                             |  |          | 247,204     |   |          |  | 201,168     |          | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Stock awards                                                                          |  |          |             |   |          |  |             |          | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Weighted average number of ordinary shares adjusted for the effect of dilution        |  |          | 79,662,845  |   |          |  | 79,665,149  |          | 
|                                                                                      |  |          |             |   |          |  |             |          | 
|Basic earnings per share (in U.S. Dollars)                                            |  |          | 8.93        |   |          |  | 7.19        |          | 
|Diluted earnings per share (in U.S. Dollars)                                          |  |          | 8.90        |   |          |  | 7.17        |          | 



F-83







Notes to the consolidated financial
statements (continued)







| | 26. | Operating segments
| | --- | ------------------



For management purposes, the Group is organized
into four operating segments based on products and services as follows:





Banking -



Principally handling loans, credit facilities, deposits
and current accounts, and providing investment banking services, including corporate finance, for corporate, individual and institutional
customers.



Insurance -



Principally granting commercial property, transportation
and marine hull, automobile, life, health and pension fund underwriting insurance. Private hospitals services are also included
under this operating segment.



Pension funds -



Providing private pension fund management services
to individuals.



Brokerage and other -



Including the structuring and placement of primary
market issuances and the execution and trading of secondary market transactions. In addition, offers local securitization structuring
to corporate entities and manages mutual funds.



Certain operating segments have been aggregated
to form the above reportable operating segments.



The Group monitors the operating results of its
business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance
is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial
statements.



Transfer prices between operating segments are on
an arm’s length basis in a manner similar to transactions with third parties.



No revenue from transactions with a single external
customer or counterparty amounted to 10 percent or more of the Group’s total revenue in 2011, 2010 and 2009.



F-84







Notes to the consolidated financial
statements (continued)



| | (i) | The following table presents income and certain asset information regarding the Group’s operating segments (in millions
of U.S. Dollars) for the years ended 31 December 2011, 2010 and 2009:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  | Capital           |   |  |              |     
|------------------- |  | -------- | ----- |  | ----------------- |  | --- | ------------ |  |  | ---------- | - |  | ---------------- | ----- |  | ------------------ |  | ----- | ---------------- |  |  | ------------------ | - |  | ------------------ | --- | - | ------------------ |  | --- | ------ |  |  | ----------------- | - |  | ------------ | ----
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  | Provision for loan |  |       |                  |  |  | Impairment of      |   |  | Income before      |     |   |                    |  |     |        |  |  | expenditures,     |   |  |              |     
|                    |  | External |       |  | Income from other |  |     |              |  |  | Total      |   |  | Operating income |       |  | losses, net of     |  |       | Depreciation and |  |  | available–for–sale |   |  | translation result |     |   | Translation result |  |     | Net    |  |  | intangible assets |   |  |              |     
|                    |  | income   |       |  | segments          |  |     | Eliminations |  |  | income (*) |   |  | (**)             |       |  | recoveries         |  |       | amortization     |  |  | investments        |   |  | and income tax     |     |   | and income tax     |  |     | income |  |  | and goodwill      |   |  | Total assets |     
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|2011                |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|Banking             |  |          | 2,391 |  |                   |  | 72  |              |  |  | (72        | ) |  |                  | 2,391 |  |                    |  | 1,260 |                  |  |  | (216               | ) |  |                    | (77 | ) |                    |  | (1  | )      |  |  | 747               |   |  |              | (134
|Insurance           |  |          | 682   |  |                   |  | 37  |              |  |  | (37        | ) |  |                  | 682   |  |                    |  | 279   |                  |  |  | -                  |   |  |                    | (8  | ) |                    |  | -   |        |  |  | 90                |   |  |              | (2  
|Pension funds       |  |          | 106   |  |                   |  | -   |              |  |  | -          |   |  |                  | 106   |  |                    |  | -     |                  |  |  | -                  |   |  |                    | (9  | ) |                    |  | -   |        |  |  | 52                |   |  |              | (15 
|Brokerage and other |  |          | 72    |  |                   |  | 54  |              |  |  | (54        | ) |  |                  | 72    |  |                    |  | (36   | )                |  |  | 1                  |   |  |                    | -   |   |                    |  | -   |        |  |  | 7                 |   |  |              | (22 
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|Total consolidated  |  |          | 3,251 |  |                   |  | 163 |              |  |  | (163       | ) |  |                  | 3,251 |  |                    |  | 1,503 |                  |  |  | (215               | ) |  |                    | (94 | ) |                    |  | (1  | )      |  |  | 896               |   |  |              | (173
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|2010                |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|Banking             |  |          | 2,042 |  |                   |  | 72  |              |  |  | (72        | ) |  |                  | 2,042 |  |                    |  | 1,037 |                  |  |  | (179               | ) |  |                    | (66 | ) |                    |  | (3  | )      |  |  | 662               |   |  |              | (120
|Insurance           |  |          | 578   |  |                   |  | 30  |              |  |  | (30        | ) |  |                  | 578   |  |                    |  | 232   |                  |  |  | -                  |   |  |                    | (6  | ) |                    |  | -   |        |  |  | 94                |   |  |              | (13 
|Pension funds       |  |          | 87    |  |                   |  | -   |              |  |  | -          |   |  |                  | 87    |  |                    |  | -     |                  |  |  | -                  |   |  |                    | (10 | ) |                    |  | -   |        |  |  | 38                |   |  |              | (9  
|Brokerage and other |  |          | 50    |  |                   |  | 63  |              |  |  | (63        | ) |  |                  | 50    |  |                    |  | (47   | )                |  |  | 4                  |   |  |                    | -   |   |                    |  | -   |        |  |  | (28               | ) |  |              | (21 
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|Total consolidated  |  |          | 2,757 |  |                   |  | 165 |              |  |  | (165       | ) |  |                  | 2,757 |  |                    |  | 1,222 |                  |  |  | (175               | ) |  |                    | (82 | ) |                    |  | (3  | )      |  |  | 766               |   |  |              | (163
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|2009                |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|Banking             |  |          | 1,820 |  |                   |  | 66  |              |  |  | (66        | ) |  |                  | 1,820 |  |                    |  | 831   |                  |  |  | (167               | ) |  |                    | (57 | ) |                    |  | (10 | )      |  |  | 502               |   |  |              | (96 
|Insurance           |  |          | 518   |  |                   |  | 15  |              |  |  | (15        | ) |  |                  | 518   |  |                    |  | 192   |                  |  |  | -                  |   |  |                    | (5  | ) |                    |  | -   |        |  |  | 68                |   |  |              | (4  
|Pension funds       |  |          | 80    |  |                   |  | -   |              |  |  | -          |   |  |                  | 80    |  |                    |  | -     |                  |  |  | -                  |   |  |                    | (9  | ) |                    |  | -   |        |  |  | 35                |   |  |              | (10 
|Brokerage and other |  |          | 40    |  |                   |  | 65  |              |  |  | (65        | ) |  |                  | 40    |  |                    |  | 8     |                  |  |  | 4                  |   |  |                    | -   |   |                    |  | -   |        |  |  | 25                |   |  |              | (16 
|                    |  |          |       |  |                   |  |     |              |  |  |            |   |  |                  |       |  |                    |  |       |                  |  |  |                    |   |  |                    |     |   |                    |  |     |        |  |  |                   |   |  |              |     
|Total consolidated  |  |          | 2,458 |  |                   |  | 146 |              |  |  | (146       | ) |  |                  | 2,458 |  |                    |  | 1,031 |                  |  |  | (163               | ) |  |                    | (71 | ) |                    |  | (10 | )      |  |  | 630               |   |  |              | (126



F-85







Notes to the consolidated financial
statements (continued)



| | (ii) | The following tables presents (in millions of U.S. Dollars) the distribution of the Group’s external income, operating
income, and non-current assets allocated based on the location of the customer and its assets, respectively for the years ended
31 December 2011, 2010 and 2009:
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                         |  | 2011       |       |  | 2010             |  |       | 2009               | 
|------------------------ |  | ---------- | ----- |  | ---------------- |  | ----- | ------------------ | 
|                         |  |            |       |  |                  |  |       |                    | 
|                         |  | Total      |       |  | Operating income |  |       | Non-current assets | 
|                         |  | income (*) |       |  | (**)             |  |       | (***)              | 
|                         |  |            |       |  |                  |  |       |                    | 
|Peru                     |  |            | 3,019 |  |                  |  | 1,423 |                    | 
|Panama                   |  |            | 50    |  |                  |  | 8     |                    | 
|Cayman Islands           |  |            | 69    |  |                  |  | 16    |                    | 
|Bolivia                  |  |            | 91    |  |                  |  | 42    |                    | 
|United States of America |  |            | 17    |  |                  |  | 13    |                    | 
|Chile                    |  |            | 5     |  |                  |  | 1     |                    | 
|                         |  |            |       |  |                  |  |       |                    | 
|Total consolidated       |  |            | 3,251 |  |                  |  | 1,503 |                    | 





| | (*)   | Includes total interest and dividend income, other income and net premiums earned from insurance activities.                               
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------
| | (**)  | Operating income includes the net interest income from banking activities and the amount of the net premiums earned, less insurance claims.
| | (***) | Non-current assets consist of property, furniture and equipment, intangible assets, and goodwill, net.                                     





F-86







Notes to the consolidated financial
statements (continued)



| | 27. | Transactions with related parties
| | --- | ---------------------------------



| | (a) | The Group’s consolidated financial statements as of December 31, 2011 and 2010 include transactions with related companies,
the Board of Directors, the Group’s key executives (defined as the Management of Credicorp’s ) and enterprises which
are controlled by these individuals through their majority shareholding or their role as Chairman or CEO.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | The following table shows the main transactions with related parties as of December 31, 2011 and 2010:
| | --- | ------------------------------------------------------------------------------------------------------



|                                                      |  | 2011     |         |   | 2010     | 
|----------------------------------------------------- |  | -------- | ------- | - | -------- | 
|                                                      |  | US$(000) |         |   | US$(000) | 
|                                                      |  |          |         |   |          | 
|Direct loans                                          |  |          | 258,088 |   |          | 
|Investments available-for-sale and trading securities |  |          | 139,676 |   |          | 
|Deposits                                              |  |          | 72,264  |   |          | 
|Contingent credits                                    |  |          | 38,927  |   |          | 
|Derivatives at fair value                             |  |          | (1,491  | ) |          | 
|Interest income related to loans – income             |  |          | 5,755   |   |          | 
|Interest expense related to deposits - expense        |  |          | 1,564   |   |          | 
|Other income                                          |  |          | 2,147   |   |          | 



| | (c) | All transactions with related parties are made in accordance with normal market conditions available to other customers. As
of December 31, 2011, direct loans to related companies are secured by collaterals, had maturities between January 2012 and October
2019 and accrued an annual average interest rate of 7.55 percent (as of December 31, 2010, had maturities between January 2011
and November 2018 and accrued an annual average interest rate of 5.91 percent). Likewise, as of December 31, 2011, the Group maintained
an allowance for loan losses to related parties amounting to US$1.5 million (US$0.1 as of December 31, 2010).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | As of December 31, 2011 and 2010, directors, officers and employees of the Group have been involved, directly and indirectly,
in credit transactions with certain subsidiaries of the Group, as permitted by Peruvian Banking and Insurance Law No26702,
which regulates and limits certain transactions with employees, directors and officers of a bank or an insurance company. As of
December 31, 2011 and 2010, direct loans to employees, directors and key Management amounted to US$176.5 and US$140.0 million,
respectively; said loans are paid monthly and earn interest at market rates.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



There are no loans to the Group’s
directors and key personnel guaranteed with Credicorp or any of its Subsidiaries’ shares.



F-87







Notes to the consolidated financial
statements (continued)



| | (e) | The Group’s key executives’ compensation (including the related income taxes assumed by the Group) as of December
31, 2011, 2010 and 2009, comprised the following:
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                         |  | 2011     |       |  | 2010     |  |       | 2009     | 
|------------------------ |  | -------- | ----- |  | -------- |  | ----- | -------- | 
|                         |  | US$(000) |       |  | US$(000) |  |       | US$(000) | 
|                         |  |          |       |  |          |  |       |          | 
|Salaries                 |  |          | 6,672 |  |          |  | 5,893 |          | 
|Directors’ compensations |  |          | 2,181 |  |          |  | 2,090 |          | 
|                         |  |          |       |  |          |  |       |          | 
|Total                    |  |          | 8,853 |  |          |  | 7,983 |          | 



Also, key executives compensation
includes share based payments as explained in more detail in Note 18. SARs valuation for the years 2011, 2010 and 2009 resulted
in a gain amounting to US$5.8 million, a loss amounting to US$24.5 million and a loss amounting to US$17.9 million, respectively.
During said years approximately US$25.5 million, US$14.8 million and US$5.0 million, SARs were executed corresponding to SARs vested
in previous years and up to April, 2011. Likewise, approximately US$4.9 million, US$3.8 million and US$1.7 million, stock awards
vested in the years 2011, 2010 and 2009, respectively. The income tax is assumed by the Group.



| | (f) | As of December 31, 2011 and 2010, the Group has participations in different mutual funds and hedge funds managed by certain
Group’s Subsidiaries; said participations are classified as trading securities or Investments available-for-sale and amounted
to approximately US$75.2 and US$58.5 million, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-88







Notes to the consolidated financial
statements (continued)



| | 28. | Financial instruments classification
| | --- | ------------------------------------



The
following are the carrying amounts of the financial assets and liabilities captions in the consolidated statements of financial
position, by categories as defined under IAS 39:



|                                                                 |  | As of December 31, 2011                    |         |  | As of December 31, 2010 | 
|---------------------------------------------------------------- |  | ------------------------------------------ | ------- |  | ----------------------- | 
|                                                                 |  | Financial assets liabilities designated at |         |  |                         | 
|                                                                 |  | fair value                                 |         |  |                         | 
|                                                                 |  | Held for trading or                        |         |  |                         | 
|                                                                 |  | hedging                                    |         |  | At inception            | 
|                                                                 |  | US$(000)                                   |         |  | US$(000)                | 
|Assets                                                           |  |                                            |         |  |                         | 
|Cash and due from banks                                          |  |                                            | -       |  |                         | 
|Trading securities                                               |  |                                            | 75,611  |  |                         | 
|Investments available-for-sale                                   |  |                                            | -       |  |                         | 
|Loans, net                                                       |  |                                            | -       |  |                         | 
|Financial assets designated at fair value through profit or loss |  |                                            | -       |  |                         | 
|Premiums and other policies receivable                           |  |                                            | -       |  |                         | 
|Accounts receivable from reinsurers and coinsurers               |  |                                            | -       |  |                         | 
|Due from customers on acceptances                                |  |                                            | -       |  |                         | 
|Other assets, Note 11                                            |  |                                            | 82,519  |  |                         | 
|                                                                 |  |                                            |         |  |                         | 
|                                                                 |  |                                            | 158,130 |  |                         | 
|                                                                 |  |                                            |         |  |                         | 
|Liabilities                                                      |  |                                            |         |  |                         | 
|Deposits and obligation                                          |  |                                            | -       |  |                         | 
|Due to banks and correspondents                                  |  |                                            | -       |  |                         | 
|Bankers’ acceptances outstanding                                 |  |                                            | -       |  |                         | 
|Accounts payable to reinsurers and coinsurers                    |  |                                            | -       |  |                         | 
|Bonds and notes issued                                           |  |                                            | -       |  |                         | 
|Other liabilities, Note 11                                       |  |                                            | 145,261 |  |                         | 
|                                                                 |  |                                            |         |  |                         | 
|                                                                 |  |                                            | 145,261 |  |                         | 



F-89







Notes to the consolidated financial
statements (continued)



| | 29. | Financial risk management
| | --- | -------------------------



The
Group’s activities involve principally the use of financial instruments, including derivatives. The Group accepts deposits
from customers at both fixed and floating rates, for various periods, and seeks to earn above-average interest margins by investing
these funds in high-quality assets. The Group seeks to increase these margins by consolidating short-term funds and lending for
longer periods at higher rates, while maintaining sufficient liquidity to meet all claims that might fall due.



The
Group also seeks to raise its interest margins by obtaining above-average market margins, net of allowances, through lending to
commercial and retail borrowers with a range of credit products. Such exposures involve not just on-balance sheet loans and advances;
the Group also enters into guarantees and other commitments such as letters of credit and performance.



The
Group also trades in financial instruments where it takes positions in traded and over-the-counter instruments, including derivatives,
to take advantage of short-term market movements in equities, bonds, currencies and interest rates.



In
this sense, risk is inherent in the Group’s activities but it is managed through a process of ongoing identification, measurement
and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Group’s continuing
profitability and each individual within the Group is accountable for the risk exposures relating to his or her responsibilities.
The Group is exposed to operating risk, credit risk, liquidity risk and market risk, the latter being subdivided into trading and
non-trading risks.



The
independent risk control process does not include business risks such as changes in the environment, technology and industry. They
are monitored through the Group’s strategic planning process.



| | (a) | Risk management structure-
| | --- | --------------------------



The Group’s Board of Directors
and of each subsidiary is ultimately responsible for identifying and controlling risks; however, there are separate independent
bodies in the major subsidiaries (BCP, PPS, ASHC and Prima AFP) responsible for managing and monitoring risks, as further explained
bellow:



| | (i) | Board of Directors
| | --- | ------------------



The Board of Directors of each
major Subsidiary is responsible for the overall risk management approach and responsible for the approval of the policies and strategies
currently in place. The Board provides written principles for overall risk management, as well as written policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative
financial instruments.



F-90







Notes to the consolidated financial
statements (continued)



| | (ii) | Risk Management Committee
| | ---- | -------------------------



The Risk Management Committee
of each major Subsidiary is responsible for the strategy used for mitigating risks as well as setting forth the overall principles,
policies and limits for the different types of risks; it is also responsible for monitoring fundamental risk issues and manages
and monitors the relevant risk decisions.



| | (iii) | Risk Management Department
| | ----- | --------------------------



The Risk Management Department
of each major Subsidiary is responsible for developing, implementing and improving, on a continuous basis, the Group’s risk
management infrastructure by adopting and incorporating global best practices and following established policies.



| | (iv) | Internal Audit
| | ---- | --------------



Risk management processes throughout
the Group are monitored by the internal audit function, which examines both the adequacy of the procedures and the compliance of
them. Internal Audit discusses the results of all assessments with Management, and reports its findings and recommendations to
Credicorp’s Audit Committee and Board of Directors.



| | (v) | Treasury and Foreign Exchange Department
| | --- | ----------------------------------------



Treasury Department is responsible
for managing the Group’s assets and liabilities and the overall financial structure. It is also primarily responsible for
the Group’s management of funding and liquidity risks; as well as the investment, forward and spot portfolios, assuming the
related liquidity, interest rate and exchange rate risks, under the policies and limits currently effective.



| | (b) | Risk measurement and reporting systems-
| | --- | ---------------------------------------



The Group's risks are measured
using a method which reflects both the expected loss likely to arise in normal circumstances and unexpected losses, which are an
estimate of the ultimate actual loss based on statistical models. The models make use of probabilities derived from historical
experience, adjusted to reflect the economic environment. The Group also runs worse case scenarios that would arise in the event
that extreme events which are unlikely to occur do, in fact, occur.



Monitoring and controlling risks
are primarily performed based on limits established by the Group. These limits reflect the business strategy and market environment
of the Group as well as the level of risk that the Group is willing to accept. In addition, the Group monitors and measures the
overall risk bearing capacity in relation to the aggregate risk exposure across all risk types and activities.



F-91







Notes to the consolidated financial
statements (continued)



Information compiled from all the
Group’s Subsidiaries is examined and processed in order to analyze, control and identify early risks. This information is
presented and explained to the Board of Directors, the Risk Management Committee, and all relevant members of the Group. The report
includes aggregate credit exposure, credit metric forecasts, hold limit exceptions, VaR (Value at Risk), liquidity ratios and risk
profile changes. Senior Management assesses the fair value of the investments and the appropriateness of the allowance for credit
losses periodically.



| | (c) | Risk mitigation-
| | --- | ----------------



As part of its overall risk management,
the Group uses derivatives and other instruments to manage exposures resulting from changes in interest rates, foreign currencies,
equity risk and credit risk.



The risk profile is assessed before
entering into hedge transactions, which are authorized by the appropriate level of seniority within the Group. The effectiveness
of hedges is assessed by the Risk Management Department. The effectiveness of all the hedge relationships is monitored monthly.
In situations of ineffectiveness, the Group will enter into a new hedge relationship to mitigate risk on a continuous basis.



The Group actively uses collateral
to reduce its credit risks.



| | (d) | Excessive risk concentration-
| | --- | -----------------------------



Concentrations arise when a number
of counterparties are engaged in similar business activities, or activities in the same geographic region, or have similar economic,
political or other conditions. Concentrations indicate the relative sensitivity of the Group’s performance to developments
affecting a particular industry or geographical location.



In order to avoid excessive concentrations
of risk, the Group’s policies and procedures include specific guidelines to focus on maintaining a diversified portfolio.
Identified concentrations of credit risks are controlled and managed accordingly.



| | 29.1. | Credit risk -
| | ----- | -------------



| | (a) | The Group takes on exposure to credit risk, which is the risk that a counterparty will cause
a financial loss by failing to discharge an obligation. Credit risk is the most important risk for the Group’s business;
therefore, Management carefully manages its exposure to credit risk. Credit exposures arise principally in lending activities that
lead to loans, and investment activities that bring debt securities and other bills into the Group’s asset portfolio. There
is also credit risk in off-balance sheet financial instruments, such as contingent credits (indirect loans), which expose the Group
to similar risks to loans (direct loans); they are both mitigated by the same control processes and policies. Likewise, credit
risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as recorded in
the consolidated statements of financial position.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-92







Notes to the consolidated financial
statements (continued)



Impairment
provisions are provided for losses that have been incurred at the date of the consolidated statements of financial position. Significant
changes in the economy or in the particular situation of an industry segment that represents a concentration in the Group’s
portfolio could result in losses that are different from those provided for at the date of the consolidated statements of financial
position.



The
Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted in relation to one borrower
or groups of borrowers, and to geographical and industry segments. Such risks are monitored on a revolving basis and subject to
frequent reviews. Limits in the level of credit risk by product, industry sector and by geographic segment are approved by the
Board of Directors.



Exposure
to credit risk is managed through regular analysis of the ability of borrowers and potential borrowers to meet interest and principal
repayment obligations and by changing these lending limits where appropriate. Some other specific control and mitigation measures
are outlined below:



| | (i) | Collateral
| | --- | ----------



The Group employs a range of policies
and practices to mitigate credit risk. The most traditional of these is the taking of security for loans granted. The Group implements
guidelines on the acceptability of specific classes of collateral or credit risk mitigation. Main collaterals accepted for loans
and advances are mortgages over residential properties; liens over business assets such as premises, inventory and accounts receivable;
and liens over financial instruments such as debt securities and equities.



Longer-term finance and lending
to corporate entities are generally secured; revolving individual credit facilities and loans to micro entrepreneurs are generally
unsecured. In addition, in order to minimize credit loss the Group will seek additional collateral from the counterparty as soon
as impairment indicators arise.



Collateral held as security for
financial assets other than loans is determined by the nature of the instrument. Debt securities, treasury and other eligible bills
are generally unsecured, with the exception of assets back securities and similar instruments, which are secured by portfolios
of financial instruments.



Management monitors the market
value of collateral, requests additional collateral in accordance with the underlying agreement, and monitors the market value
of collateral obtained during its review of the adequacy of the allowance for impairment losses. It is the Group’s policy
to dispose off repossessed properties in an orderly manner. The proceeds are used to reduce or repay the outstanding claim. In
general, the Group does not use repossessed properties for its own business.



F-93







Notes to the consolidated financial
statements (continued)



| | (ii) | Derivatives
| | ---- | -----------



The Group maintains strict control
limits on net open derivative positions (for example, the difference between purchase and sale contracts), by both amount and term.
The amount subject to credit risk is limited to the current fair value of instruments that are favorable to the Group (for example,
an asset when fair value is positive), which in relation to derivatives is only a small fraction of the contract, or notional amount
used to express the volume of instruments outstanding. This credit risk exposure is managed as part of the overall lending limits
with customers, together with potential exposures from market movements. Collateral or other security is not usually obtained for
credit risk exposures on these instruments.



Settlement risk arises in any
situation where a payment in cash, securities or equity is made in the expectation of a corresponding receipt in cash, securities
or equity. Daily settlement limits are established for each counterparty in order to cover the aggregate of all settlement risk
arising from the Group’s market transactions on any single day.



| | (iii) | Credit-related commitments
| | ----- | --------------------------



The primary purpose of these instruments
is to ensure that funds are available to a customer as required. Guarantees and standby letters of credit have the same credit
risk as loans. Documentary and commercial letters of credit - which are written undertakings by the Group on behalf of a customer
authorizing a third party to draw drafts on the Group up to a stipulated amount under specific terms and conditions - are collateralized
by the underlying shipments of goods to which they relate and therefore have less risk than a direct loan. The Group has no mandatory
commitments to extend credit.



In
order to manage credit risk, as part of the Group’s risk management structure, see Note 29(a), there is a Risk Management
Department whose major functions are implementing methodologies and statistical models for measuring credit risk exposures, developing
and applying methodologies for the calculation of risk-ratings, both at the corporate and business unit levels, performing analysis
of credit concentrations, verifying that credit exposures are within the established limits and suggesting global risk exposures
by economic sector, time term, among others.



Also,
a Risk Assessment Committee has been established comprising three directors, the Chief Executive Officer, the Chief Financial Officer,
the Deputy Chief Executive Officer, the Risk Division Manager, the Risk Management Department Manager, Central Manager Retail Banking,
Central Manager Wholesale Banking, the Credit Division Manager and the Internal Audit Division Manager as an observer. Each of
the financial indicators prepared by the Risk Management Department are analyzed by this committee on a monthly basis to subsequently
evaluate the policies, procedures and limits currently effective at the Group to ensure that an efficient and effective risk management
is always in place.



F-94







Notes to the consolidated financial
statements (continued)



At
the same time, the Group has a Credit Division, which establishes the overall credit policies for each and all the businesses in
which the Group decides to take part. Said credit policies are set forth based on the guidelines established by the Board of Directors
and keeping in mind the statutory financial laws and regulations. It’s main activities are: establish the client credit standards
and guidelines (evaluation, authorization and control), follow the guidelines established by the Board of Directors and General
Management as well as those established by governmental regulatory bodies, review and authorize credit applications, up to the
limit within the scope of its responsibilities and to submit to upper hierarchies those credit applications exceeding the established
limits, monitor credit-granting activities within the different autonomous bodies, among others.



| | (b) | The maximum exposure to credit risk as of December 31, 2011 and 2010, before the effect of
mitigation through any collateral, is the book value of each class of financial assets indicated in Note 29.7(a) and the contingent
credits detailed in Note 19(a).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Management is confident in its ability to continue to control and sustain minimal exposure
of credit risk to the Group resulting from both its loan portfolio and investments based on the following:
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | 98 percent of the gross loan portfolio is categorized in the top two grades of the internal
rating system as of December 31, 2011 and 2010;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------



| | - | 97 percent of the loan portfolio is considered to be neither past due nor impaired as of
December 31, 2011 (98 percent as of December 31, 2010);
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------



| | - | 81.6 percent of the investments have at least investment credit rating (BBB- or higher) or
are debt securities issued by BCRP (unrated) as of December 31, 2011 (65.7 percent as of December 31, 2010); and
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | 15.2 percent and 68.7 percent of the cash and due from banks represent amounts deposited
in the Group’s vaults or in the BCRP (including overnight operations), respectively, as of December 31, 2011 (10 percent
and 74 percent, respectively, as of December 31, 2010).
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Credit risk management for loans -
| | --- | ----------------------------------



Credicorp
classifies its loan portfolio into one of five risk categories, depending upon the degree of risk of non-payment of each debtor.
The categories used are: (i) normal - A, (ii) potential problems - B, (iii) substandard - C, (iv) doubtful - D and (v) loss - E,
which have the following characteristics:



F-95







Notes to the consolidated financial
statements (continued)



Normal
(Class A): Debtors of commercial loans that fall into this category have complied on a timely basis with their obligations and
at the time of evaluation do not present any reason for doubt with respect to repayment of interest and principal on the agreed
dates, and there is no reason to believe that the status will change before the next evaluation. To place a loan in Class A, a
clear understanding of the use to be made of the funds and the origin of the cash flows to be used by the debtor to repay the loan
is required. Consumer loans are categorized as Class A if payments are current or up to eight days past-due. Residential mortgage
loans warrant Class A classification if payments are current or up to thirty days past-due.



Potential
problems (Class B): Debtors of commercial loans included in this category are those that at the time of the evaluation demonstrate
certain deficiencies, which, if not corrected on a timely manner, imply risks with respect to the recovery of the loan. Certain
common characteristics of loans or credits in the category include: delays in loan payments which are promptly covered, a general
lack of information required to analyze the credit, out-of-date financial information, temporary economic or financial imbalances
on the part of the debtor which could affect its ability to repay the loan, and market conditions that could affect the economic
sector in which the debtor is active. Consumer loans are categorized as Class B if payments are between 9 and 30 days late. Residential
mortgage loans become Class B when payments are between 31 and 60 days late.



Substandard
(Class C): Debtors of commercial loans included in this category demonstrate serious financial weakness, often with operating results
or available income insufficient to cover financial obligations on agreed upon terms, with no reasonable short-term prospects for
a strengthening of their financial capacity. Debtors demonstrating the same deficiencies that warrant classification as category
B warrant classification as Class C if those deficiencies are such that if they are not corrected in the near term, they could
impede the recovery of principal and interest on the loan on the originally agreed terms. In addition, commercial loans are classified
in this category when payments are between 61 and 120 days late. Consumer loan are categorized as Class C if payments are between
31 and 60 days late. Residential mortgage loans are classified as Class C when payments are between 61 and 120 days late.



Doubtful
(Class D): Debtors of commercial loans included in this category present characteristics that make doubtful the recovery of the
loan. Although the loan recovery is doubtful, if there is a reasonable possibility that in the near future the creditworthiness
of the debtor might improve, a Class D categorization is appropriate. These credits are distinguished from Class E credits by the
requirement that the debtor remain in operation, generate cash flow, and make payments on the loan, although at a rate less than
that specified in its contractual obligations. In addition, commercial loans are classified in this category when payments are
between 121 and 365 days late. Consumer loans are categorized as Class D if payments are between 61 and 120 days late. Residential
mortgage loans are Class D when payments are between 121 and 365 days late.



F-96







Notes to the consolidated financial
statements (continued)



Loss
(Class E): Commercial loans which are considered unrecoverable or which for any other reason should not appear on Group’s
books as an asset based on the originally contracted terms fall into this category. In addition, commercial loans are classified
in this category when payments are more than 365 days late. Consumer loans are categorized as Class E if payments are more than
120 days late. Residential mortgage loans are Class E when payments are more than 365 days late.



The
Group reviews its loan portfolio on a continuing basis in order to assess the completion and accuracy of its classifications.



All
loans considered impaired (the ones classified as substandard, doubtful or loss) are analyzed by the Group’s Management,
which addresses impairment in two areas: individually assessed allowance and collectively assessed allowance, as follows:



| | - | Individually assessed allowance -
| | - | ---------------------------------



The
Group determines the appropriate allowance for each individually significant loan or advance on an individual basis. Items considered
when determining allowance amounts include the sustainability of the counterparty’s business plan, its ability to improve
its performance once a financial difficulty has arisen, projected cash flows and the expected dividend payout should bankruptcy
happens, the availability of other financial support, including the realizable value of collateral, and the timing of the expected
cash flows. Impairment losses are evaluated at each reporting date, unless unforeseen circumstances require more careful attention.



The
methodology and assumptions used for estimating future cash flows are reviewed regularly by the Group in order to reduce any differences
between loss estimates and actual loss experience.



| | - | Collectively assessed allowance -
| | - | ---------------------------------



Allowance
requirements are assessed collectively for losses on loans and advances that are not individually significant (including consumer,
micro-business and residential mortgages) and for individually significant loans and advances where there is not yet objective
evidence of individual impairment (included in categories A and B). Allowances are evaluated on each reporting date with each portfolio
receiving a separate review.



The
collective assessment takes account of impairment that is likely to be present in the portfolio even though there is not yet objective
evidence of the impairment in an individual assessment. Impairment losses are estimated by taking into consideration the following
information: historical losses on the portfolio, current economic conditions, the approximate delay between the time a loss is
likely to have been incurred and the time it will be identified as requiring an individually assessed impairment allowance, and
expected receipts and recoveries once impaired. Management is responsible for deciding the length of this period which can extend
for as long as one year. The impairment allowance is then reviewed by Management to ensure alignment with the Group’s overall
policy.



F-97







Notes to the consolidated financial
statements (continued)



Financial
guarantees and letter of credit (indirect loans) are assessed and a provision estimated following a similar procedure as for loans.



In
the case of borrowers in countries where there is an increased risk of difficulties in servicing external debt, an assessment of
the political and economic situation is made, and an additional country risk provision is recorded.



When
a loan is uncollectible, it is written off against the related provision for loan impairment. Such loans are written off after
all the necessary legal procedures have been completed. Subsequent recoveries of amounts previously written off decrease the amount
of the provision for loan impairment in the consolidated income statements.



The following is a summary of the direct loans classified
in three major groups: i) Loans neither past due nor impaired, comprising those direct loans having presently no delinquency characteristics
and related to clients ranked as normal or potential problems; ii) Past due but not impaired loans, comprising past due loans of
clients classified as normal or with potential problems and iii) Impaired loans, or those past due loans ofclients classified
as substandard, doubtful or loss; presented net of the provision for loan losses for each of the loan classifications:



|                                |  | As of December 31, 2011 |           
|------------------------------- |  | ----------------------- | ----------
|                                |  | Commercial              |           
|                                |  | loans                   |           
|                                |  | US$(000)                |           
|Neither past due nor impaired - |  |                         |           
|Normal                          |  |                         | 11,990,640
|Potential problem               |  |                         | 323,628   
|                                |  |                         |           
|Past due but not impaired -     |  |                         |           
|Normal                          |  |                         | 242,904   
|Potential problem               |  |                         | 8,484     
|                                |  |                         |           
|Impaired -                      |  |                         |           
|Substandard                     |  |                         | 72,507    
|Doubtful                        |  |                         | 80,588    
|Loss                            |  |                         | 88,119    
|                                |  |                         |           
|Gross                           |  |                         | 12,806,870
|                                |  |                         |           
|Less: Allowance for loan losses |  |                         | 318,944   
|                                |  |                         |           
|Total, net                      |  |                         | 12,487,926



F-98







Notes to the consolidated financial
statements (continued)



|                                |  | As of December 31, 2010 |           
|------------------------------- |  | ----------------------- | ----------
|                                |  | Commercial              |           
|                                |  | loans                   |           
|                                |  | US$(000)                |           
|Neither past due nor impaired - |  |                         |           
|Normal                          |  |                         | 10,125,086
|Potential problem               |  |                         | 229,566   
|                                |  |                         |           
|Past due but not impaired -     |  |                         |           
|Normal                          |  |                         | 170,050   
|Potential problem               |  |                         | 26,974    
|                                |  |                         |           
|Impaired -                      |  |                         |           
|Substandard                     |  |                         | 67,117    
|Doubtful                        |  |                         | 63,329    
|Loss                            |  |                         | 78,645    
|                                |  |                         |           
|Gross                           |  |                         | 10,760,767
|                                |  |                         |           
|Less: Allowance for loan losses |  |                         | 256,670   
|                                |  |                         |           
|Total, net                      |  |                         | 10,504,097



As of December 31, 2011 and 2010, renegotiated loans
amounts to approximately US$96.0 and US$76.7 million, respectively, of which US$23.8 and US$12.5 million, respectively, are classified
as neither past due nor impaired, US$0.5 and US$0.1 million past due but not impaired, and US$71.7 and US$64.1 million impaired
but not past due, respectively.



The breakdown of the gross amount of impaired loans
by class, along with the fair value of related collateral and the amounts of their allowance for loan losses is as follows:



|                          |  | As of December 31, 2011 |        
|------------------------- |  | ----------------------- | -------
|                          |  | Commercial              |        
|                          |  | loans                   |        
|                          |  | US$(000)                |        
|                          |  |                         |        
|Impaired loans            |  |                         | 241,214
|                          |  |                         |        
|Fair value of collateral  |  |                         | 128,611
|                          |  |                         |        
|Allowance for loan losses |  |                         | 132,944



F-99







Notes to the consolidated financial
statements (continued)



|                          |  | As of December 31, 2010 |        
|------------------------- |  | ----------------------- | -------
|                          |  | Commercial              |        
|                          |  | loans                   |        
|                          |  | US$(000)                |        
|                          |  |                         |        
|Impaired loans            |  |                         | 209,091
|                          |  |                         |        
|Fair value of collateral  |  |                         | 122,067
|                          |  |                         |        
|Allowance for loan losses |  |                         | 111,853



| | (d) | Credit risk management on investments in trading securities and available-for-sale -
| | --- | ------------------------------------------------------------------------------------



The Group evaluates the credit risk identified of
each of the financial instruments in these categories, considering the risk rating granted to them by a risk rating agency. For
investments traded in Peru, the risk ratings use are those provided by the three most prestigious Peruvian rating agencies (authorized
by the Peruvian government regulator) and for investments traded abroad, the risk-ratings used are those provided by the three
most prestigious international rating agencies. In the event any subsidiary use a risk-rating prepared by any other risk rating
agency, such risk-ratings are standardized with those provided by the afore-mentioned institutions for consolidation purposes.



The following table shows the analysis of the risk-rating
of available-for-sale investments, provided by the institutions referred to above:



|                                 |  | As of December 31, 2011 |           |  | As of December 31, 2010 | 
|-------------------------------- |  | ----------------------- | --------- |  | ----------------------- | 
|                                 |  | US$(000)                |           |  | %                       | 
|                                 |  |                         |           |  |                         | 
|Instruments rated in Peru:       |  |                         |           |  |                         | 
|AAA                              |  |                         | 481,736   |  |                         | 
|AA- to AA+                       |  |                         | 88,669    |  |                         | 
|A- to A+                         |  |                         | 23,984    |  |                         | 
|BBB- to BBB+                     |  |                         | -         |  |                         | 
|BB- to BB+                       |  |                         | 2,232     |  |                         | 
|Unrated                          |  |                         |           |  |                         | 
|BCRP certificates of deposit     |  |                         | 2,059,780 |  |                         | 
|Listed and non-listed securities |  |                         | 254,306   |  |                         | 
|Restricted mutual funds          |  |                         | 88,319    |  |                         | 
|Mutual funds                     |  |                         | 38,639    |  |                         | 
|Other instruments                |  |                         | 33,729    |  |                         | 
|                                 |  |                         |           |  |                         | 
|Subtotal                         |  |                         | 3,071,394 |  |                         | 



F-100









Notes to the consolidated financial statements(continued)



|                                                |  | As of December 31, 2011 |           |  | As of December 31, 2010 | 
|----------------------------------------------- |  | ----------------------- | --------- |  | ----------------------- | 
|                                                |  | US$(000)                |           |  | %                       | 
|                                                |  |                         |           |  |                         | 
|Instruments rated abroad:                       |  |                         |           |  |                         | 
|AAA                                             |  |                         | 128,762   |  |                         | 
|AA- to AA+                                      |  |                         | 164,636   |  |                         | 
|A- to A+                                        |  |                         | 501,229   |  |                         | 
|BBB- to BBB+                                    |  |                         | 1,377,466 |  |                         | 
|BB- to BB+                                      |  |                         | 162,137   |  |                         | 
|Lower than B+                                   |  |                         | 47,781    |  |                         | 
|Unrated                                         |  |                         |           |  |                         | 
|Listed and non-listed securities                |  |                         | 225,110   |  |                         | 
|Central Bank of Bolivia certificates of deposit |  |                         | 110,945   |  |                         | 
|Participation in RAL’s funds                    |  |                         | 49,263    |  |                         | 
|Mutual funds                                    |  |                         | 30,069    |  |                         | 
|Hedge funds                                     |  |                         | 27,857    |  |                         | 
|Other instruments                               |  |                         | 18,952    |  |                         | 
|                                                |  |                         |           |  |                         | 
|Subtotal                                        |  |                         | 2,844,207 |  |                         | 
|                                                |  |                         |           |  |                         | 
|Total                                           |  |                         | 5,915,601 |  |                         | 



F-101







Notes
to the consolidated financial statements(continued)



| | (e) | Concentration of financial instruments exposed to credit risk:
| | --- | --------------------------------------------------------------



As of December 31, 2011 and 2010,
financial instruments with exposure to credit risk were distributed considering the following economic sectors:



|                                           |  | 2011                                             |         |  | 2010         | 
|------------------------------------------ |  | ------------------------------------------------ | ------- |  | ------------ | 
|                                           |  | Designated at fair value through profit for loss |         |  |              | 
|                                           |  | Held for trading and                             |         |  |              | 
|                                           |  | hedging                                          |         |  | At inception | 
|                                           |  | US$(000)                                         |         |  | US$(000)     | 
|                                           |  |                                                  |         |  |              | 
|Central Reserve Bank of Perú               |  |                                                  | -       |  |              | 
|Financial services                         |  |                                                  | 68,940  |  |              | 
|Manufacturing                              |  |                                                  | 27,389  |  |              | 
|Mortgage loans                             |  |                                                  | -       |  |              | 
|Commerce                                   |  |                                                  | 1,825   |  |              | 
|Consumer loans                             |  |                                                  | -       |  |              | 
|Electricity, gas and water                 |  |                                                  | 3,581   |  |              | 
|Leaseholds and real estate activities      |  |                                                  | 4,201   |  |              | 
|Mining                                     |  |                                                  | 138     |  |              | 
|Government and public administration       |  |                                                  | 50,739  |  |              | 
|Micro-business loans                       |  |                                                  | -       |  |              | 
|Communications, storage and transportation |  |                                                  | 39      |  |              | 
|Community services                         |  |                                                  | 10      |  |              | 
|Agriculture                                |  |                                                  | 383     |  |              | 
|Education, health and other services       |  |                                                  | 323     |  |              | 
|Insurance                                  |  |                                                  | -       |  |              | 
|Construction                               |  |                                                  | 523     |  |              | 
|Fishing                                    |  |                                                  | -       |  |              | 
|Other                                      |  |                                                  | 39      |  |              | 
|                                           |  |                                                  |         |  |              | 
|Total                                      |  |                                                  | 158,130 |  |              | 



F-102







Notes
to the consolidated financial statements(continued)



As of December 31, 2011 and 2010, the financial
instruments with exposure to credit risk were distributed by the following geographical areas:



|                         |  | 2011                                            |        
|------------------------ |  | ----------------------------------------------- | -------
|                         |  | Designated at fair value through profit or
loss |        
|                         |  | Held for trading and hedging                    |        
|                         |  | US$(000)                                        |        
|                         |  |                                                 |        
|Peru                     |  |                                                 | 119,391
|United States of America |  |                                                 | 18,468 
|Bolivia                  |  |                                                 | 182    
|Colombia                 |  |                                                 | 4,028  
|Chile                    |  |                                                 | 135    
|Europe:                  |  |                                                 |        
|United Kingdom           |  |                                                 | 14,941 
|Switzerland              |  |                                                 | -      
|France                   |  |                                                 | -      
|Luxembourg               |  |                                                 | -      
|Spain                    |  |                                                 | -      
|Netherlands              |  |                                                 | -      
|Other Europe             |  |                                                 | 136    
|Brazil                   |  |                                                 | -      
|Supranational            |  |                                                 | -      
|Mexico                   |  |                                                 | -      
|Other                    |  |                                                 | 849    
|                         |  |                                                 |        
|Total                    |  |                                                 | 158,130



F-103







Notes to the consolidated financial
statements(continued)



|                         |  | 2010                                            |        
|------------------------ |  | ----------------------------------------------- | -------
|                         |  | Designated at fair value through profit or
loss |        
|                         |  | Held for trading
and hedging                    |        
|                         |  | US$(000)                                        |        
|                         |  |                                                 |        
|Peru                     |  |                                                 | 146,345
|United States of America |  |                                                 | 44,413 
|Bolivia                  |  |                                                 | 263    
|Chile                    |  |                                                 | 662    
|Colombia                 |  |                                                 | -      
|Europe:                  |  |                                                 |        
|United Kingdom           |  |                                                 | 8,178  
|France                   |  |                                                 | -      
|Switzerland              |  |                                                 | -      
|Netherlands              |  |                                                 | -      
|Spain                    |  |                                                 | -      
|Luxembourg               |  |                                                 | -      
|Other Europe             |  |                                                 | -      
|Brazil                   |  |                                                 | -      
|Supranational            |  |                                                 | -      
|Mexico                   |  |                                                 | -      
|Other                    |  |                                                 | 652    
|                         |  |                                                 |        
|Total                    |  |                                                 | 200,513



| | 29.2. | Market risk -
| | ----- | -------------



The Group takes on exposure to market
risks, which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risks arise from open positions in interest rates, currency, commodities and equity products; all of which
are exposed to general and specific market movements and changes in the level of volatility of prices such as interest rates, credit
spreads, foreign exchange rates and equity prices. Due to the nature of the Group’s current activities, commodity price risk
is not applicable.



The Group separates exposures
to market risk into two groups: (i) those that arise from value fluctuation of trading portfolios due to movements of market rates
or prices (Trading Book) and (ii) those that arise from changes in the structural positions of non-trading portfolios due to movements
of the interest rates, prices and foreign exchange ratios (ALM Book).



F-104







Notes to the consolidated financial
statements(continued)



The
risks that trading portfolios face are managed through Value at Risk (VaR) historical simulation techniques; while non-trading
portfolios are managed using Asset and Liability Management (ALM).



| | (a) | Trading Book –
| | --- | --------------



The
trading book is characterized for having liquid positions in equities, bonds, foreign currencies and derivatives, arising from
market-making transactions where the Group acts as a principal with the clients or with the market. This portfolio includes investments
and all derivatives both of them classified by Management as held for trading.



| | (i) | Value at Risk (VaR) -
| | --- | ---------------------



The Group applies the VaR approach
to its trading portfolio to estimate the market risk of positions held and the maximum losses that are expected, based upon a number
of assumptions for various changes in market conditions.



Daily calculation of VaR is a
statistically-based estimate of the potential loss on the current portfolio from adverse market movements.



The VaR expresses the “maximum”
amount the Group might lose, but only to a certain level of confidence (99 percent). There is therefore a specified statistical
probability (1 percent) that actual loss could be greater than the VaR estimate. The VaR model assumes a certain “holding
period” until positions can be closed (1 - 10 days).



The time horizon used to calculate
VaR is one day; however, the one-day VAR is amplified to a 10-day time frame and calculated multiplying the one-day VaR times the
square root of 10. This adjustment will be exact only if the changes in the portfolio in the following days have a normal distribution
identical and independent; otherwise, the VAR to 10 days will be an approximation.



The use of this approach does
not prevent losses outside of these limits in the event of more significant market movements. Losses exceeding the VaR figure should
occur, on average under normal market conditions, not more than once every hundred days.



VaR limits have been established
to control and keep track of all the risks taken. These risks arise from the size of the positions and/or the volatility of the
risk factors embedded in each financial instrument. Regular reports are prepared for the Risk Committee of the Treasury and ALM,
the Risk Management Committees and Senior Management.



In VaR calculation, the foreign
exchange effect is not included because it is measured in the net monetary position, see note 29.2 (b)(ii).



F-105







Notes
to the consolidated financial statements(continued)



As of December 31, 2011 and 2010,
the Group’s VaR by type of asset is as follows:



|                               |  | 2011     |        |   | 2010     | 
|------------------------------ |  | -------- | ------ | - | -------- | 
|                               |  | US$(000) |        |   | US$(000) | 
|                               |  |          |        |   |          | 
|Equity investments             |  |          | 234    |   |          | 
|Debt Investments               |  |          | 4,763  |   |          | 
|Swaps                          |  |          | 3,957  |   |          | 
|Forwards                       |  |          | 6,325  |   |          | 
|Options                        |  |          | 9      |   |          | 
|Diversification effect         |  |          | (7,707 | ) |          | 
|Consolidated VaR by asset type |  |          | 7,581  |   |          | 



As of December 31, 2011 and 2010,
the Group’s VaR by risk type is as follows:



|                              |  | 2011     |       |   | 2010     | 
|----------------------------- |  | -------- | ----- | - | -------- | 
|                              |  | US$(000) |       |   | US$(000) | 
|                              |  |          |       |   |          | 
|Interest rate risk            |  |          | 7,596 |   |          | 
|Price risk                    |  |          | 234   |   |          | 
|Volatility risk               |  |          | 4     |   |          | 
|Diversification effect        |  |          | (253  | ) |          | 
|Consolidated VaR by risk type |  |          | 7,581 |   |          | 



| | (b) | ALM Book –
| | --- | ----------



Non-trading portfolios which comprise
the ALM Book are exposed to different sensitivities that can bring about a deterioration in the value of the assets compared to
its liabilities and hence to a reduction of its net worth.



| | (i) | Interest rate risk -
| | --- | --------------------



Interest rate risk arises from
the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments. Cash
flows interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because
of changes in market interest rates. The Group takes on exposure to the effects of fluctuations in the prevailing levels of market
interest rates on both its fair value and cash flows risks. Interest margins may increase as a result of such changes but may also
decrease in the event that unexpected movements arise. The Board sets limits on the level of mismatch of interest rate re-pricing
that may be undertaken, which is monitored daily by the Treasury Department.



Re-pricing gap -



Gap analysis comprises aggregating
re-pricing timeframes into buckets and checking if each bucket nets to zero. Different bucketing schemes might be used. An interest
rate gap is simply a positive or negative net re-pricing timeframe for one of the buckets.



F-106







Notes to the
consolidated financial statements(continued)



The table below summarizes the
Group’s exposure to interest rate risks. It includes the Group’s financial instruments at carrying amounts, categorized
by the earlier of contractual re-pricing or maturity dates:



|                                                                        |  | As of December 31, 2011 |          
|----------------------------------------------------------------------- |  | ----------------------- | ---------
|                                                                        |  | Up to 1 month           |          
|                                                                        |  | US$(000)                |          
|                                                                        |  |                         |          
|Assets                                                                  |  |                         |          
|Cash and due from banks                                                 |  |                         | 4,246,213
|Investments                                                             |  |                         | 375,861  
|Loans, net                                                              |  |                         | 2,162,685
|Financial assets designated at fair value through profit or loss        |  |                         | 239      
|Premiums and other policies receivables                                 |  |                         | -        
|Accounts receivable from reinsurers and coinsurers                      |  |                         | -        
|Other assets                                                            |  |                         | -        
|Total assets                                                            |  |                         | 6,784,998
|                                                                        |  |                         |          
|Liabilities                                                             |  |                         |          
|Deposits and obligations                                                |  |                         | 4,373,417
|Due to banks and correspondents                                         |  |                         | 463,660  
|Accounts payable to reinsurers and coinsurers                           |  |                         | -        
|Technical, insurance claims reserves and reserves for unearned premiums |  |                         | 23,622   
|Bonds and notes issued                                                  |  |                         | 711,515  
|Other liabilities                                                       |  |                         | -        
|Equity                                                                  |  |                         | -        
|Total liabilities and equity                                            |  |                         | 5,572,214
|                                                                        |  |                         |          
|Off-Balance sheet items                                                 |  |                         |          
|Derivatives assets                                                      |  |                         | 495,709  
|Derivatives liabilities                                                 |  |                         | 14,595   
|                                                                        |  |                         | 481,114  
|Marginal gap                                                            |  |                         | 1,693,898
|                                                                        |  |                         |          
|Accumulated gap                                                         |  |                         | 1,693,898



F-107







Notes to the consolidated financial
statements(continued)



|                                                                        |  | As of December 31, 2010 |          
|----------------------------------------------------------------------- |  | ----------------------- | ---------
|                                                                        |  | Up to 1 month           |          
|                                                                        |  | US$(000)                |          
|                                                                        |  |                         |          
|Assets                                                                  |  |                         |          
|Cash and due from banks                                                 |  |                         | 5,567,838
|Investments                                                             |  |                         | 535,658  
|Loans, net                                                              |  |                         | 1,903,439
|Financial assets designated at fair value through profit or loss        |  |                         | -        
|Premiums and other policies receivables                                 |  |                         | -        
|Accounts receivable from reinsurers and coinsurers                      |  |                         | -        
|Other assets                                                            |  |                         | -        
|Total assets                                                            |  |                         | 8,006,935
|                                                                        |  |                         |          
|Liabilities                                                             |  |                         |          
|Deposits and obligations                                                |  |                         | 6,366,203
|Due to banks and correspondents                                         |  |                         | 511,317  
|Accounts payable to reinsurers and coinsurers                           |  |                         | -        
|Technical, insurance claims reserves and reserves for unearned premiums |  |                         | 51,258   
|Bonds and notes issued                                                  |  |                         | 840,256  
|Other liabilities                                                       |  |                         | -        
|Equity                                                                  |  |                         | -        
|Total liabilities and equity                                            |  |                         | 7,769,034
|                                                                        |  |                         |          
|Off-Balance sheet items                                                 |  |                         |          
|Derivatives assets                                                      |  |                         | 507,560  
|Derivatives liabilities                                                 |  |                         | 280,099  
|                                                                        |  |                         | 227,461  
|Marginal gap                                                            |  |                         | 465,362  
|                                                                        |  |                         |          
|Accumulated gap                                                         |  |                         | 465,362  



F-108







Notes to the consolidated financial
statements(continued)



Sensitivity to changes in interest
rates –



The
following table presents the sensitivity to a reasonable possible change in interest rates, with all other variables held constant,
of the Group’s consolidated income statement and consolidated statements of comprehensive income; before income tax and non-controlling
interest.



The
sensitivity of the consolidated income statement is the effect of the assumed changes in interest rates on the net interest income
for one year before income tax and non-controlling interest, based on the floating rate of non-trading financial assets and financial
liabilities held at December 31, 2011 and 2010, including the effect of derivatives instruments. The sensitivity of consolidated
comprehensive income is calculated by revaluing fixed rate available-for-sale financial assets, before income tax and non-controlling
interest, including the effect of any associated hedges, and derivatives instruments designated as cash flow hedges, as of December
31, 2011 and 2010 for the effects of the assumed changes in interest rates:



|                  |  | As of December 31, 2011 |    
|----------------- |  | ----------------------- | ---
|                  |  |                         |    
|Currency          |  | Changes in basis points |    
|                  |  |                         |    
|                  |  |                         |    
|U.S. Dollar       |  | +/-                     | 50 
|U.S. Dollar       |  | +/-                     | 75 
|U.S. Dollar       |  | +/-                     | 100
|U.S. Dollar       |  | +/-                     | 150
|Peruvian Currency |  | +/-                     | 50 
|Peruvian Currency |  | +/-                     | 75 
|Peruvian Currency |  | +/-                     | 100
|Peruvian Currency |  | +/-                     | 150



|                  |  | As of December 31, 2010 |    
|----------------- |  | ----------------------- | ---
|                  |  |                         |    
|Currency          |  | Changes in basis points |    
|                  |  |                         |    
|                  |  |                         |    
|U.S. Dollar       |  | +/-                     | 50 
|U.S. Dollar       |  | +/-                     | 75 
|U.S. Dollar       |  | +/-                     | 100
|U.S. Dollar       |  | +/-                     | 150
|Peruvian Currency |  | +/-                     | 50 
|Peruvian Currency |  | +/-                     | 75 
|Peruvian Currency |  | +/-                     | 100
|Peruvian Currency |  | +/-                     | 150



The
interest rate sensitivities set out in the table above are illustrative only and are based on simplified scenarios. The figures
represent the effect of the pro-forma movements in the net interest income based on the projected yield curve scenarios and the
Group’s current interest rate risk profile. This effect, however, does not incorporate actions that would be taken by Management
to mitigate the impact of this interest rate risk. In addition, the Group seeks proactively to change the interest rate risk profile
to minimize losses and optimize net revenues. The projections above also assume that interest rate of all maturities move by the
same amount and, therefore, do not reflect the potential impact on net interest income of some rates changing while others remain
unchanged. The projections make other simplifying assumptions too, including that all positions run to maturity.



F-109







Notes
to the consolidated financial statements(continued)



Securities, mutual funds and hedge
funds are not considered as part of the investment securities for sensitivity calculation purposes; however, a 10, 25 and 30 percent
of changes in market prices is conducted to these price-sensitivity securities and the expected unrealized gain or loss, before
income tax, as of December 31, 2011 and 2010 is presented below:



|                         |  | Changes in market |       |  |          |  |         |          | 
|------------------------ |  | ----------------- | ----- |  | -------- |  | ------- | -------- | 
|Market price sensitivity |  | prices            |       |  | 2011     |  |         | 2010     | 
|                         |  | %                 |       |  | US$(000) |  |         | US$(000) | 
|                         |  |                   |       |  |          |  |         |          | 
|Equity securities        |  |                   | +/-10 |  |          |  | 47,942  |          | 
|Equity securities        |  |                   | +/-25 |  |          |  | 119,854 |          | 
|Equity securities        |  |                   | +/-30 |  |          |  | 143,825 |          | 
|Mutual funds             |  |                   | +/-10 |  |          |  | 6,871   |          | 
|Mutual funds             |  |                   | +/-25 |  |          |  | 17,177  |          | 
|Mutual funds             |  |                   | +/-30 |  |          |  | 20,612  |          | 
|Hedge funds              |  |                   | +/-10 |  |          |  | 2,786   |          | 
|Hedge funds              |  |                   | +/-25 |  |          |  | 6,964   |          | 
|Hedge funds              |  |                   | +/-30 |  |          |  | 8,357   |          | 



| | (ii) | Foreign exchange risk -
| | ---- | -----------------------



The Group is exposed to foreign
currency exchange rates on its financial position and cash flows. Management sets limits on the level of exposure by currency and
in total for both overnight and intra-day positions, which are monitored daily.



F-110







Notes
to the consolidated financial statements(continued)



Foreign currency transactions
are made at the free market exchange rates of the countries where Credicorp’s Subsidiaries are established. As of December
31, 2011 and 2010, the Group’s assets and liabilities by currencies were as follows:



|                                                                                 |  | 2011         |             |   | 2010     | 
|-------------------------------------------------------------------------------- |  | ------------ | ----------- | - | -------- | 
|                                                                                 |  |              |             |   | Peruvian | 
|                                                                                 |  | U.S. Dollars |             |   | currency | 
|                                                                                 |  | US$(000)     |             |   | US$(000) | 
|                                                                                 |  |              |             |   |          | 
|Monetary assets -                                                                |  |              |             |   |          | 
|Cash and due from banks                                                          |  |              | 3,848,401   |   |          | 
|Trading securities                                                               |  |              | 18,416      |   |          | 
|Available-for-sale investments                                                   |  |              | 2,402,643   |   |          | 
|Loans, net                                                                       |  |              | 9,734,175   |   |          | 
|Financial assets designated at fair value through profit or loss                 |  |              | 90,103      |   |          | 
|Other assets                                                                     |  |              | 684,549     |   |          | 
|                                                                                 |  |              | 16,778,287  |   |          | 
|                                                                                 |  |              |             |   |          | 
|Monetary liabilities -                                                           |  |              |             |   |          | 
|Deposits and obligations                                                         |  |              | (9,282,891  | ) |          | 
|Due to bank and correspondents                                                   |  |              | (1,755,816  | ) |          | 
|Technical reserves, insurance claims reserves and reserves for unearned premiums |  |              | (994,522    | ) |          | 
|Bonds and notes issued                                                           |  |              | (3,491,135  | ) |          | 
|Other liabilities                                                                |  |              | (728,792    | ) |          | 
|                                                                                 |  |              | (16,253,156 | ) |          | 
|                                                                                 |  |              | 525,131     |   |          | 
|                                                                                 |  |              |             |   |          | 
|Forwards position, net                                                           |  |              | 339,606     |   |          | 
|Currency swaps position, net                                                     |  |              | (167,263    | ) |          | 
|Cross currency swaps position, net                                               |  |              | (197,659    | ) |          | 
|Options, net                                                                     |  |              | 3,269       |   |          | 
|                                                                                 |  |              |             |   |          | 
|Net monetary position                                                            |  |              | 503,084     |   |          | 



F-111







Notes
to the consolidated financial statements(continued)



The Group manages foreign exchange
risk by monitoring and controlling the position values due to changes in exchange rates. The Group measures its performance in
U.S. Dollar, so if the net foreign exchange position (e.g. Peruvian currency) is an asset, any depreciation of the U.S. Dollar
with respect to this currency would affect positively the Group’s consolidated statements of financial position. The current
position in a foreign currency comprises exchange rate-linked assets and liabilities in that currency. An institution’s open
position in individual currencies comprises assets, liabilities and off-balance sheet items denominated in the respective foreign
currency for which the institution itself bears the risk; any appreciation/depreciation of the foreign exchange would affect the
consolidated income statement.



The Group’s net foreign
exchange balance is the sum of its positive open non-U.S. Dollars positions (net long position) less the sum of its negative open
non-U.S. Dollar positions (net short position); and any devaluation/revaluation of the foreign exchange position would affect the
consolidated income statement. A currency mismatch would leave the Group’s consolidated statements of financial position
vulnerable to a fluctuation of the foreign currency (exchange rate shock).



The table below shows the sensitivity
analysis of the Peruvian Currency, the currency to which the Group had significant exposure as of December 31, 2011 and 2010 on
its non-trading monetary assets and liabilities and its forecast cash flows. The analysis calculates the effect of a reasonably
possible movement of the currency rate against the U.S. Dollar, with all other variables held constant on the consolidated income
statement, before income tax. A negative amount in the table reflects a potential net reduction in consolidated income statement,
while a positive amount reflects a net potential increase:



|                     |  | Change in      |    |  |          |  |          |          | 
|-------------------- |  | -------------- | -- |  | -------- |  | -------- | -------- | 
|Sensitivity Analysis |  | currency rates |    |  | 2011     |  |          | 2010     | 
|                     |  | %              |    |  | US$(000) |  |          | US$(000) | 
|                     |  |                |    |  |          |  |          |          | 
|Devaluation -        |  |                |    |  |          |  |          |          | 
|Peruvian Currency    |  |                | 5  |  |          |  | (86,828  | )        | 
|Peruvian Currency    |  |                | 10 |  |          |  | (183,304 | )        | 
|                     |  |                |    |  |          |  |          |          | 
|Revaluation -        |  |                |    |  |          |  |          |          | 
|Peruvian Currency    |  |                | 5  |  |          |  | 78,559   |          | 
|Peruvian Currency    |  |                | 10 |  |          |  | 149,976  |          | 



| | 29.3. | Liquidity risk -
| | ----- | ----------------



Liquidity risk is the risk that the
Group is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds
when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors, fulfill commitments to lend
or meet other operating cash needs.



F-112







Notes to the consolidated financial
statements(continued)



The Group is exposed to daily calls
on its available cash resources from overnight deposits, current accounts, maturing deposits, loans draw-downs, guarantees and
other calls. The Group does not maintain cash resources to meet all of these needs, as experience shows that a minimum level of
reinvestment of maturing funds can be predicted with a high level of certainty. The Management of the Group’s subsidiaries
sets limits on the minimum proportion of funds available to meet such calls and on the minimum level of inter-bank and other borrowing
facilities that should be in place to cover withdrawals at unexpected levels of demands. Sources of liquidity are regularly reviewed
by a separate team in Group Treasury Department to maintain a wide diversification by currency, geography, provider, product and
term.



The matching and controlled mismatching
of the maturities and interest rates of assets and liabilities is fundamental to the management of the Group. It is unusual for
banks to be completely matched, as transacted business is often based on uncertain terms and of different types. An unmatched position
potentially enhances profitability, but also increases the risk of losses.



The maturities of assets and liabilities
and the ability to replace, at an acceptable cost, interest-bearing liabilities as they mature are important factors in assessing
the liquidity of the Group and its exposure to changes in interest rates and exchange rates.



Liquidity requirements to support
calls under guarantees and standby letters of credit (indirect loans) are considerably less than the amount of the commitment,
because the Group does not generally expect the third party to draw funds under the agreement. The total outstanding contractual
amount of commitments to extend credit does not necessarily represent future cash requirements, as many of these commitments will
expire or terminate without being funded.



A maturity mismatch, long-term illiquid
assets against short-term liabilities, exposes the consolidated statements of financial position to risks related both to rollover
and to interest rates. If liquid assets do not cover maturing debts; a consolidated statements of financial position is vulnerable
to a rollover risk. Furthermore, a sharp increase in interest rates can dramatically increase the cost of rolling over short-term
liabilities, leading to a rapid increase in debt service. The contractual-maturity gap report is useful in showing liquidity characteristics.



F-113







Notes
to the consolidated financial statements(continued)



The table below presents the cash
flows payable by the Group by remaining contractual maturities (including future interest payments) at the date of the consolidated
statements of financial position. The amounts disclosed in the table are the contractual undiscounted cash flows:



|                                                                        |  | As of December 31, 2011 |           |  | As of December 31, 2010 | 
|----------------------------------------------------------------------- |  | ----------------------- | --------- |  | ----------------------- | 
|                                                                        |  | Up to a month           |           |  | From 1 to 3
 months     | 
|                                                                        |  | US$(000)                |           |  | US$(000)                | 
|                                                                        |  |                         |           |  |                         | 
|Deposits and obligations                                                |  |                         | 5,411,905 |  |                         | 
|Due to banks and correspondents                                         |  |                         | 470,666   |  |                         | 
|Accounts payable to reinsurer and coinsurers                            |  |                         | 18,899    |  |                         | 
|Technical, insurance claims reserves and reserves for unearned premiums |  |                         | 36,818    |  |                         | 
|Bonds and notes issued                                                  |  |                         | 26,354    |  |                         | 
|Other liabilities                                                       |  |                         | 626,736   |  |                         | 
|                                                                        |  |                         |           |  |                         | 
|Total liabilities                                                       |  |                         | 6,591,378 |  |                         | 



The table below shows the contractual
maturity of the Group’s contingent credits at the date of the consolidated statements of financial position:



|                   |  | As of December 31, 2011 |         |  | As of December 31, 2010 | 
|------------------ |  | ----------------------- | ------- |  | ----------------------- | 
|                   |  |                         |         |  | From 1 to 3             | 
|                   |  | Up to a month           |         |  | months                  | 
|                   |  | US$(000)                |         |  | US$(000)                | 
|                   |  |                         |         |  |                         | 
|Contingent credits |  |                         | 375,937 |  |                         | 



The group expects that not all of
the contingent liabilities or commitments will be drawn before expiration of the commitments.



F-114







Notes
to the consolidated financial statements(continued)



| | 29.4. | Operational risk -
| | ----- | ------------------



Operational risk is the risk of
loss arising from systems failure, human error, fraud or external events. When controls fail to perform, operational risks can
cause damage to reputation, have legal or regulatory implications, or lead to financial loss. The Group cannot expect to eliminate
all operational risks, but through a control framework and by monitoring and responding to potential risks, the Group is able to
manage the risks. Controls include effective segregation of duties, access, authorization and reconciliation procedures, staff
education and assessment processes, including the use of Internal Audit.



| | 29.5 | Risk of the insurance activity -
| | ---- | --------------------------------



The principal risk the Group faces
under insurance contracts is that the actual claims and benefit payments or the timing thereof, differ from expectations. This
is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development of long-term claims.
Therefore the objective of the Group is to ensure that sufficient reserves are available to cover these liabilities.



The above risk exposure is mitigated
by diversification across a large portfolio of insurance contracts. The variability of risks is also improved by careful selection
and implementation of underwriting strategy guidelines, as well as the use of reinsurance arrangements. The Group’s placement
of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations of the Group substantially
dependent upon any single reinsurance contract.



Life insurance contracts



The main risks that the Group
is exposed are mortality,morbidity, longevity, investment return, expense incurred of loss arising
from expense experience being different than expected, and policyholder decision, all of which, do not vary significantly in relation
to the location of the risk insured by the Group, type of risk insured or industry.



The Group’s underwriting strategy
is designed to ensure that risks are well diversified in terms of type of risk and level of insured benefits. This is largely achieved
through diversification across insurable risks, the use of medical screening in order to ensure that pricing takes account of current
health conditions and family medical history, regular review of actual claims experience and product pricing, as well as detailed
claims handling procedures. Underwriting limits are in place to enforce appropriate risk selection criteria. For example, the Group
has the right not to renew individual policies, it can impose deductibles and it has the right to reject the payment of fraudulent
claims.



For contracts when death is the insured
risk, the significant factors that could increase the overall frequency of claims are epidemics, widespread changes in lifestyle
and natural disasters, resulting in earlier or more claims than expected.



For retirement, survival and disability
pension contracts, the most significant factor is continuing improvement in medical science and social conditions that would increase
longevity.



Management has made a sensitivity
analysis of the estimates of the technical reserves, Note 14(c).



F-115







Notes to the consolidated financial
statements(continued)



Non-life insurance contracts (general
insurance and healthcare)



The Group principally issues the
following types of general insurance contracts: motor, household and commercial and health. Healthcare contracts provide medical
expense cover to policyholders. Risks under non-life insurance policies usually cover 12 months.



For general insurance contracts the
most significant risks arise from climate changes, natural disasters and other type of damages. For healthcare contracts the most
significant risks arise from lifestyle changes, epidemics and medical science and technology improvements.



These risks do not vary significantly
in relation to the location of the risk insured by the Group, type of risk insured or industry.



The above risks exposures are mitigated
by diversification across a large portfolio of insurance contracts. The variability of risk is improved by careful selection and
implementation of underwriting strategies, which are designed to ensure that risks are diversified in terms of risks type and level
of insured benefits. This is largely achieved through diversification across industry sectors and geography. Further, strict claim
review policies to assess all new and ongoing claims, regular detailed review of claims handling procedures and frequent investigation
of possible fraudulent claims are all policies and procedures put in place to reduce the Group’s risk exposure. Insurance
contracts also entitle the Group to pursue third parties for payment of some or all costs. Also, the Group actively manages and
promptly pursues claims, in order to reduce its exposure to unpredictable future developments that can negatively impact the Group.



The Group has also limited its exposure
by imposing maximum claim amounts on certain contracts as well as the use of reinsurance arrangements in order to limit its exposure
to catastrophic events.



In the following paragraphs the
Group has segregated some risk information related to its insurance business, which has been already included in the Group’s
consolidated risk information; in order to provide more specific insight about this particular business.



F-116







Notes to the consolidated financial
statements(continued)



| | (a) | Sensitivity to changes in interest rates -
| | --- | ------------------------------------------



The following tables demonstrate
the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, in consolidated income
statement and consolidated statements of comprehensive income of the insurance activity, before income tax:



|                  |  | As of December 31, 2011 |    
|----------------- |  | ----------------------- | ---
|                  |  |                         |    
|Currency          |  | Changes in basis points |    
|                  |  |                         |    
|U.S. Dollar       |  | +/-                     | 50 
|U.S. Dollar       |  | +/-                     | 75 
|U.S. Dollar       |  | +/-                     | 100
|U.S. Dollar       |  | +/-                     | 150
|Peruvian Currency |  | +/-                     | 50 
|Peruvian Currency |  | +/-                     | 75 
|Peruvian Currency |  | +/-                     | 100
|Peruvian Currency |  | +/-                     | 150



|                  |  | As of December 31, 2010 |    
|----------------- |  | ----------------------- | ---
|                  |  |                         |    
|Currency          |  | Changes in basis points |    
|                  |  |                         |    
|                  |  |                         |    
|U.S. Dollar       |  | +/-                     | 50 
|U.S. Dollar       |  | +/-                     | 75 
|U.S. Dollar       |  | +/-                     | 100
|U.S. Dollar       |  | +/-                     | 150
|Peruvian Currency |  | +/-                     | 50 
|Peruvian Currency |  | +/-                     | 75 
|Peruvian Currency |  | +/-                     | 100
|Peruvian Currency |  | +/-                     | 150



The interest rate sensitivities
set out in the table above are illustrative only and employ simplified scenarios. It should be noted that the effects may not be
linear and therefore the results cannot be extrapolated. The sensitivities do not incorporate actions that could be taken by Management
to mitigate the effect of the interest rate movements, nor any changes in policyholders’ behaviors.



| | (b) | Liquidity risk of the insurance activity -
| | --- | ------------------------------------------



The Group’s insurance companies
are exposed to requirements of cash available, mainly for contracts of insurance claims of short term. The Group holds the available
funds for covering its liabilities according to their maturity and estimated unexpected claims.



F-117







Notes to the consolidated financial
statements(continued)



The Group’s insurance companies
control liquidity risk through the exposure of the maturity of their liabilities. Therefore, the investment plan has been structured
considering the maturities in order to manage the risk of fund requirements to cover insurance claims and others, in addition to
the Group support.



The undiscounted cash flows payable
by the Group for technical reserves, insurance claims reserves and reserves for unearned premiums by their remaining contractual
maturities, including future interest payments, is presented in Note 29.3.



Other non-derivative financial
liabilities are related to the balances presented in the consolidated statements of financial position and include mainly accounts
payable to reinsurers and coinsurers and other liabilities with contractual maturities of less than one year, see also Note 29.3.



Unit linked liabilities are payable
on demand and are included in the up to a year column.



| | (c) | Credit risk of the insurance activity -
| | --- | ---------------------------------------



Credit risk is the risk that one
party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation.



The following policies and procedures
are in place to mitigate the Group’s exposure to credit risk:



| | - | The Group sets the maximum amounts and limits that may be advanced to corporate counterparties by reference to their long-
term credit ratings.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------



| | - | Credit risk from customer balances, will only persist during the grace period specified in the policy document or trust deed
until the policy is paid up or terminated. Commissions paid to intermediaries are netted off against amounts receivable from them
in order to reduce the risk of doubtful accounts.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by following
guidelines in respect of counterparties’ limits which are set each year by the Board of Directors and are subject to regular
reviews. At each reporting date, Management performs an assessment of creditworthiness of reinsurers and updates the reinsurance
purchase strategy, ascertaining suitable allowance for impairment.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | A Group policy setting out the assessment and determination of what constitutes credit risk for the Group is in place, its
compliance is monitored and exposures and breaches are reported to the Group risk committee. The policy is regularly reviewed for
pertinence and for changes in the risk environment.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | - | The Group issues unit linked contracts whereby the policyholder bears the investment risk on the financial assets held in the
Company’s investment portfolio as the policy benefits are directly linked to the value of the assets in the portfolio. Therefore,
the Group has no material credit risk on unit linked financial assets.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-118







Notes
to the consolidated financial statements(continued)



| | - | The Group has not provided the credit risk analysis for the financial assets of the unit linked business. This is due to the
fact that, in unit linked business, the liability to policyholders is linked to the performance and value of the assets that back
those liabilities and the shareholders have no direct exposure to any credit risk in those assets.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 29.6. | Capital management -
| | ----- | --------------------



The Group maintains an actively managed capital
base to cover risks inherent in its business. The adequacy of the Group’s capital is monitored using, among other measures,
the rules and ratios established by the SBS, the supervising authority of its major subsidiaries and for consolidation purposes.



The Group’s objectives when managing capital,
which is a broader concept than the “Equity” on the face of the consolidated statements of financial position, are:
(i) to comply with the capital requirements set by the regulators of the markets where the entities within the Group operate; (ii)
to safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders
and benefits for other stakeholders; and (iii) to maintain a strong capital base to support the development of its business.



On June 2008, by means of Legislative Decree N°
1028, the Banking Law was amended. The amendments provided that the regulatory capital must be equal to or more than 10 percent
of total risk weighted assets and contingent operations, represented by the sum of: the regulatory capital requirement for market
risk multiplied by 10, the regulatory capital requirement for operational risk multiplied by 10 and the weighted assets and contingent
credits by credit risk. This calculation must include all balance sheet exposures or assets in local or foreign currency. This
ratio was gradually implemented until July 2011. As of December 31, 2011 and 2010, the minimum requirement is 10.0 and 9.8 percent,
respectively.



The risk-weighted assets are measured by means of
a hierarchy of five risk weights classified according to the nature and reflecting an estimate of credit, market and other risks
associated with each asset and counterparty, taking into account any eligible collateral or guarantees. A similar treatment is
adopted for off-balance sheet exposure, with some adjustments to reflect the more contingent nature of the potential losses.



According to the SBS regulations, the Junior Subordinated
Notes issued by BCP are computable to determinate the Group’s regulatory capital, see Note 15(a)(iii).



As of December 31, 2011 and 2010, the regulatory
capital for the subsidiaries engaged in financial and insurance activities amounted to approximately US$3,022.7 and US$2,391.3
million, respectively. This regulatory capital has been determined in accordance with SBS regulations in force as of such dates.
According to the SBS regulations, the Group’s regulatory capital exceeds in approximately US$549.8 million the minimum regulatory
capital required as of December 31, 2011 (approximately US$514.8 million as of December 31, 2010).



F-119







Notes to the consolidated financial
statements(continued)



On July 20, 2011, SBS issued Resolution N° 8425
- 2011which states that an entity must determine an additional regulatory capital. In this sense, Peruvian financial institutions
must develop a process to assess the adequacy of its regulatory capital in relation with their risk profile, which must follow
the methodology described in said resolution. The additional regulatory capital will be equal to the amount of regulatory capital
requirements calculated for each of the following components: economic cycle, concentration risk, market concentration risk, interest
rates risk, among others. Peruvian financial institutions have a term of five years from July 2012 to adequate their regulatory
capital to the new requirements.



Considering the excess of regulatory capital held
by the Group as of December 31. 2011 in the Management’s opinion, the Bank has complied with the requirements set forth in
such resolution.



| | 29.7. | Fair value -
| | ----- | ------------



| | (a) | Fair value is defined as the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing
parties in an arm’s length transaction, assuming an on-going enterprise.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



When a financial instrument is
traded in an active and liquid market, its quoted market price in an actual transaction provides the best evidence of its fair
value. When a quoted market price is not available, or may not be indicative of the fair value of the instrument, to determine
such fair value the current market value of another instrument that is substantially similar, discounted cash flow analysis or
other estimation techniques may be used, all of which are significantly affected by assumptions used. Although Management uses
its best judgment in estimating the fair value of these financial instruments, there are inherent weaknesses in any estimation
technique. As a result, the fair value may not be indicative of the net realizable or liquidation value.



The methodologies and assumptions
used to determine fair values depend on the terms and risk characteristics of the various financial instruments and include the
following:



| | (i) | Assets for which fair value approximates carrying value - For financial assets and financial liabilities that are liquid or
having a short term maturity (less than three months) it is assumed that the carrying amounts approximate to their fair value.
This assumption is also applied to demand deposits, savings accounts without a specific maturity and variable rate financial instruments.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | Fixed rate financial instruments - The fair value of fixed rate financial assets and liabilities carried at amortized cost
are estimated by comparing market interest rates when they were first recognized with current market rates offered for similar
financial instruments. The estimated fair value of fixed interest bearing deposits is based on discounted cash flows using prevailing
money-market interest rates for debts with similar credit risk and maturity. For quoted debt issued the fair values are calculated
based on quoted market prices. For those notes issued where quoted market prices are not available, a discounted cash flow model
is used based on a current interest rate yield curve appropriate for the remaining term to maturity.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | Financial instrument recorded at fair value - The fair value for financial instruments traded in active markets at the dates
of the consolidated statements of financial position is based on their quoted market price or dealer price quotations (bid price
for long positions and ask price for short positions), without any deduction for transaction costs. For all other financial instruments
not listed in an active market, the fair value is determined by using appropriate valuation techniques. Valuation techniques include
net present value techniques and comparison to similar instruments for which market observable prices exist, see (b).
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-120







Notes
to the consolidated financial statements(continued)



Based in the aforementioned, set out below is a
comparison of the carrying amounts and fair values of the Group’s financial instruments that are carried in the consolidated
statements of financial position. The table does not include the fair values of non-financial assets and non-financial liabilities:



|                                                                 |  | 2011     |            |  | 2010     | 
|---------------------------------------------------------------- |  | -------- | ---------- |  | -------- | 
|                                                                 |  | Book     |            |  | Fair     | 
|                                                                 |  | value    |            |  | value    | 
|                                                                 |  | US$(000) |            |  | US$(000) | 
|                                                                 |  |          |            |  |          | 
|Assets                                                           |  |          |            |  |          | 
|Cash and due from banks                                          |  |          | 5,502,862  |  |          | 
|Trading securities                                               |  |          | 75,611     |  |          | 
|Investments available-for-sale                                   |  |          | 5,915,601  |  |          | 
|Loans, net                                                       |  |          | 16,922,233 |  |          | 
|Financial assets designated at fair value through profit or loss |  |          | 90,103     |  |          | 
|Premiums and other policies receivable                           |  |          | 174,367    |  |          | 
|Accounts receivable from reinsurers and coinsurers               |  |          | 151,080    |  |          | 
|Due from customers on acceptances                                |  |          | 61,695     |  |          | 
|Other assets                                                     |  |          | 632,628    |  |          | 
|Total                                                            |  |          | 29,526,180 |  |          | 
|                                                                 |  |          |            |  |          | 
|Liabilities                                                      |  |          |            |  |          | 
|Deposits and obligation                                          |  |          | 18,703,847 |  |          | 
|Due to banks and correspondents                                  |  |          | 2,060,020  |  |          | 
|Banker’s acceptances outstanding                                 |  |          | 61,695     |  |          | 
|Accounts payable to reinsurers and coinsurers                    |  |          | 75,366     |  |          | 
|Bonds and notes issued                                           |  |          | 3,965,522  |  |          | 
|Other liabilities                                                |  |          | 867,380    |  |          | 
|Total                                                            |  |          | 25,733,830 |  |          | 



F-121







Notes to the consolidated financial
statements(continued)



| | (b) | Determination of fair value and fair values hierarchy –
| | --- | -------------------------------------------------------



The following table shows
an analysis of financial instruments recorded at fair value by level of the fair value hierarchy:



|                                                                 |  |       |  |  | Level 1  |           |           | Level 2  |  |           | Level 3   |  |  | Total    |      
|---------------------------------------------------------------- |  | ----- |  |  | -------- | --------- | --------- | -------- |  | --------- | --------- |  |  | -------- | -----
|December 31, 2011                                                |  | Note  |  |  | US$(000) |           |           | US$(000) |  |           | US$(000)  |  |  | US$(000) |      
|                                                                 |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Financial assets                                                 |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Derivative financial instruments:                                |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Held for trading                                                 |  |       |  |  |          |           | -         |          |  |           | 70,654    |  |  |          | -    
|Held as hedges                                                   |  |       |  |  |          |           | -         |          |  |           | 11,865    |  |  |          | -    
|                                                                 |  | 11(b) |  |  |          | -         |           |          |  | 82,519    |           |  |  | -        |      
|                                                                 |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Trading securities                                               |  |       |  |  |          |           | 75,611    |          |  |           | -         |  |  |          | -    
|Financial assets designated at fair value through profit or loss |  | 7(a)  |  |  |          | 76,931    |           |          |  | 13,172    |           |  |  | -        |      
|Investments available-for-sale                                   |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Debt securities                                                  |  |       |  |  |          |           | 1,416,430 |          |  |           | 3,971,524 |  |  |          | 8,562
|Equity securities                                                |  |       |  |  |          |           | 471,759   |          |  |           | 6,781     |  |  |          | 876  
|                                                                 |  | 5(a)  |  |  |          | 1,888,189 |           |          |  | 3,978,305 |           |  |  | 9,438    |      
|Total financial assets                                           |  |       |  |  |          |           | 2,040,731 |          |  |           | 4,073,996 |  |  |          | 9,438
|                                                                 |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Financial liabilities                                            |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Derivative financial instruments:                                |  |       |  |  |          |           |           |          |  |           |           |  |  |          |      
|Held for trading                                                 |  |       |  |  |          |           | -         |          |  |           | 70,263    |  |  |          | -    
|Held as hedges                                                   |  |       |  |  |          |           | -         |          |  |           | 74,998    |  |  |          | -    
|Total financial liabilities                                      |  | 11(b) |  |  |          | -         |           |          |  | 145,261   |           |  |  | -        |      



F-122







Notes to the consolidated financial
statements(continued)



|                                                                 |  |      |       |  | Level 1  |  |           | Level 2  |  |  | Level 3   |  |  | Total    |       
|---------------------------------------------------------------- |  | ---- | ----- |  | -------- |  | --------- | -------- |  |  | --------- |  |  | -------- | ------
|December 31, 2010                                                |  | Note |       |  | US$(000) |  |           | US$(000) |  |  | US$(000)  |  |  | US$(000) |       
|                                                                 |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Financial assets                                                 |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Derivative financial instruments:                                |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Held for trading                                                 |  |      |       |  |          |  | -         |          |  |  | 65,090    |  |  |          | -     
|Held as hedges                                                   |  |      |       |  |          |  | -         |          |  |  | 19,855    |  |  |          | -     
|                                                                 |  |      | 11(b) |  |          |  | -         |          |  |  | 84,945    |  |  |          | -     
|                                                                 |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Trading securities                                               |  |      |       |  |          |  | 115,568   |          |  |  | -         |  |  |          | -     
|Financial assets designated at fair value through profit or loss |  |      | 7(a)  |  |          |  | 179,055   |          |  |  | -         |  |  |          | -     
|Investments available-for-sale                                   |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Debt securities                                                  |  |      |       |  |          |  | 790,196   |          |  |  | 2,380,811 |  |  |          | 18,427
|Equity securities                                                |  |      |       |  |          |  | 529,267   |          |  |  | 3,793     |  |  |          | 7,455 
|                                                                 |  |      | 5(a)  |  |          |  | 1,319,463 |          |  |  | 2,384,604 |  |  |          | 25,882
|Total financial assets                                           |  |      |       |  |          |  | 1,614,086 |          |  |  | 2,469,549 |  |  |          | 25,882
|                                                                 |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Financial liabilities                                            |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Derivative financial instruments:                                |  |      |       |  |          |  |           |          |  |  |           |  |  |          |       
|Held for trading                                                 |  |      |       |  |          |  | -         |          |  |  | 55,788    |  |  |          | -     
|Held as hedges                                                   |  |      |       |  |          |  | -         |          |  |  | 80,882    |  |  |          | -     
|Total financial liabilities                                      |  |      | 11(b) |  |          |  | -         |          |  |  | 136,670   |  |  |          | -     



Included in the Level 1 category are financial assets
that are measured in whole or in part by reference to published quotes in an active market. A financial instrument is regarded
as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group,
pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s
length basis.



The Level 2 category are financial assets and liabilities
measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions,
are assets and liabilities for which pricing is obtained via pricing services, but where prices have not been determined in an
active market, financial assets with fair values based on broker quotes, investments in private equity funds with fair values obtained
via fund managers and assets that are valued using the Group’s own models whereby the majority of assumptions are market
observable.



The Level 3 category are financial assets measured
using a valuation technique (model) based on assumptions that are neither supported by prices from observable current market transactions
in the same instrument nor are they based on available market data.



As of December 31, 2011 and 2010, the net
unrealized gain of Level 3 financial instruments amounts to US$1.4 million and US$2.8 million, respectively and the gross
impairment recorded amounted to US$7.8 million and US$11.2 million, respectively. During 2011 and 2010, there were no
transfer from Level 3 to Level 1 and Level 2 of financial instruments measured at fair value.



F-123







Notes
to the consolidated financial statements(continued)



| | 29.8. | Fiduciary activities, management of funds and pension
funds -
| | ----- | -------------------------------------------------------------



The Group provides custody, trustee,
investment management and advisory services to third parties; therefore, the Group makes allocations and purchase and sale decisions
in relation to a wide range of financial instruments. Assets that are held in a fiduciary capacity are not included in these consolidated
financial statements. These services give rise to the risk thfat the Group will be accused of poor administration or under-performance.



As of December 31, 2011 and 2010,
the assigned value of the financial assets under administration (in millions of U.S. Dollars) is as follows:



|                  |  | 2011 |          |  | 2010 | 
|----------------- |  | ---- | -------- |  | ---- | 
|                  |  |      |          |  |      | 
|Investments funds |  |      | 2,818.8  |  |      | 
|Pension funds     |  |      | 9,395.8  |  |      | 
|Equity managed    |  |      | 3,850.5  |  |      | 
|                  |  |      |          |  |      | 
|Total             |  |      | 16,065.1 |  |      | 



| | 30. | Commitments and contingencies
| | --- | -----------------------------



Legal claim contingency –



On September 22, 2011, the Trustee
for the liquidations of Bermard L. Madoff Investment Securities LLC (BLMIS), and the substantively consolidated state of Bermard
L. Madoff (“the Madoff Trustee”) filed a complaint against Credicorp’s subsidiary Atlantic Security Bank (ASB)
in U.S. Bankruptcy Court Southern District of New York, for an amount of approximately US$120 million (“the Complaint”),
which corresponds to the funds that ASB managed in Atlantic US Blue Chip Fund and that were redeemed between the end of 2004 and
the beginning of 2005 from Fairfield Sentry Limited (hereafter “Fairfield”), a feeder fund that invested in BLMIS.



The Complaint further alleges that
the Madoff Trustee filed an adversary proceeding against Fairfield, seeking to avoid and recover the initial transfers of monies
from BLMIS to Fairfield; that on June 7 and 10, 2011, the Bankruptcy Court approved a settlement among the Madoff Trustee, Fairfield
and others; and that the Madoff Trustee is entitled to recover the sums sought from ASB as “subsequent transfers” of
“avoided transfers” from BLMIS to Fairfield that Fairfield subsequently transferred to ASB. The Madoff Trustee has
filed similar actions against other alleged “subsequent transferees” that invested in Fairfield and its sister entities
which, in turn, invested and redeemed funds from BLMIS.



In addition, ASB, as well as other
defendants, filed a motion to withdraw the reference to Bankruptcy Court. ASB ́s Management considers that the case against
ASB raises several important issues that it believes require interpretation of federal, non-bankruptcy law and which interpretation
should be addressed by a U.S. federal district court as opposed to a federal bankruptcy court. In this regard, an administrative
order entered by the Bankruptcy Court on March 5, 2012 provides that the defendants, including ASB, shall file one consolidated
brief no later than May 3, 2012 regarding this issue.



Management believes that ASB has
substantial defenses against the Madoff Trustee’s claims alleged in the Complaint and intends to contest these claims vigorously,
both in the Bankruptcy Court or District Court, as applicable. Management considers, among other substantial defenses, that the
Complaint considers only the amounts withdrawn, without taking into account the amounts invested in Fairfield. Furthermore, ASB
after redeeming said funds from Fairfield re-invested them in BLMIS, through another vehicle, that resulted in a net loss in the
funds that ASB managed on behalf of its clients for approximately US$ 78 million as of December, 2008.



F-124







Notes
to the consolidated financial statements(continued)



ASB counsel and the Trustee have
agreed that ASB has until September 5, 2012 to move, answer or otherwise respond to the Complaint.



In addition, on April 13, 2012 the liquidator of
Fairfield filed a complaint in the U.S. Bankruptcy Court against ASB and the beneficial owners of accounts in the Fairfield funds
held by ASB by which it seeks recovery of approximately US$115 million that were invested in Fairfield funds and redeemed prior
to June 15, 2005 and Fairfield ́s insolvency, alleging various common law claims grounded in British Virgin Islands law.



ASB ́s time to move, answer or otherwise respond
to the Fairfield complaint will not begin to run until ASB is formally served, so no immediate response to the Fairfield complaint
is required. In addition, at present, all the actions by the Fairfield liquidator have been stayed, pending resolution of litigation
in the British Virgin Islands, where a Court of Appeal is currently deciding whether the Fairfield liquidator may recover proceeds
from their investors. Management believes that ASB has substantial defenses against the claims alleged in the complaint and intends
to contest these claims vigorously.



Purchase agreement –



Credicorp, through its
subsidiary BCP, reached an agreement on November 30, 2011 with the shareholders of Correval S.A. Sociedad Comisionista de Bolsa,
a brokerage entity established in Bogota, Colombia, to acquire a 51 percent stake in such entity for approximately US$76.5 million.Closing of this transaction was subject to the approval from the authorities in Colombia and Peru, among other precedent
conditions that were fulfilled on April 2012.According to Management of the Group, payment will take
place in the upcoming days.



Also, the Group, through its subsidiary BCP, on
April 23, 2012, reached an agreement in principle with the shareholders of IMTrust S.A., a brokerage entity established in Santiago,
Chile, to acquire a 60.6 percent stake in such entity for an amount approximately to 3.5 percent of Credicorp ́s net equity.
Closing of this transaction is subject to the completion of a due diligence process and the approval from the regulatory authorities
in Chile and Peru.



F-125









ITEM 19.         EXHIBITS



(a)    Index
to Exhibits





| | 12.3 | Certification by the Chief Executive Officer pursuant
to Section 302 of the U.S. Sarbanes-Oxley Act of 2002
| | ---- | -----------------------------------------------------------------------------------------------------------



| | 12.4 | Certification by the Chief Financial Officer pursuant
to Section 302 of the U.S. Sarbanes-Oxley Act of 2002
| | ---- | -----------------------------------------------------------------------------------------------------------



| | 13.3 | Certification by the Chief Executive Officer pursuant
to Section 906 of the U.S. Sarbanes-Oxley Act of 2002
| | ---- | -----------------------------------------------------------------------------------------------------------



| | 13.4 | Certification by the Chief Financial Officer pursuant
to Section 906 of the U.S. Sarbanes-Oxley Act of 2002
| | ---- | -----------------------------------------------------------------------------------------------------------







2









SIGNATURES



The registrant hereby
certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned
to sign this Annual Report on its behalf





|CREDICORP LTD.          |                        
|----------------------- | -----------------------
|                        |                        
|By:                     | /S/ ALVARO CORREA      
|                        |                        
|Name:                   | Alvaro Correa          
|Tittle:                 | Chief Financial Officer
|                        |                        
|Dated: November 7, 2012 |                        





EXHIBIT INDEX





|12.3 | Certification by the Chief Executive Officer pursuant to Section 302 of the U.S. Sarbanes-Oxley Act of 2002
|---- | -----------------------------------------------------------------------------------------------------------
|     |                                                                                                            
|12.4 | Certification by the Chief Financial Officer pursuant to Section 302 of the U.S. Sarbanes-Oxley Act of 2002
|     |                                                                                                            
|13.3 | Certification by the Chief Executive Officer pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002
|     |                                                                                                            
|13.4 | Certification by the Chief Financial Officer pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002







3